CONFIDENTIAL Grouper Acquisition Overview

page 1 Executive Summary SPE has tremendous opportunity through digital distribution and ad-supported online content –Consumer time and advertising revenues are shifting online, threatening the ability for our core businesses to achieve growth and margin objectives –Online infrastructure is nearly in place, with digital content at the outset of its growth curve –SPE competitors are investing heavily, and filling a gap between studio content and user generated content At $65MM, a Grouper acquisition would accelerate entry into ad-supported content and could become a platform for other digital services online –Grouper is the optimal acquisition target for SPE, due to its experienced management, market-leading technology and demonstrated traction with users –Price in-line with comps and at a discount to recent competitor acquisitions –Service will be further enhanced by SPE content, marketing and ad sales capabilities

page 2 Digital Transition Will Increasingly Challenge SPE’s Businesses Sales increasingly cross-platform Budgets shifting away from traditional outlets “Grass roots” campaigns increasingly prevalent –Character campaigns on social networks –Viral distribution of ad messages Market less forgiving of average to poor titles due to instantaneous availability of information online. New forms of content competing for consumers’ time and money Traditional distribution channels’ economics under attack, pressuring studio margins Theatrical Marketing Content Distribution Economics Advertising Sales Achieving and exceeding SPE revenue growth and margin targets will be enhanced via entry into adjacent businesses

page 3 Competitors Are Investing in User Generated Video User Generated Video Creates Value for Traditional Content Owners User Generated Video Creates Value for Traditional Content Owners  Attracting large audiences and creating legitimate alternative distribution channels  Offering user-generated video and driving advertising revenue  Two-way medium with high degree of interactivity, customer engagement and feedback  Attracting large audiences and creating legitimate alternative distribution channels  Offering user-generated video and driving advertising revenue  Two-way medium with high degree of interactivity, customer engagement and feedback Acquired MySpace for $580MM Acquired IGN for $650MM and Scout for $170MM $900MM search advertising deal with Google 7/18/2005 9/09/2005 8/07/2006 Acquired Lightningcast for online video ad insertion technology Launched free video portal with content from A&E, MTV, Warner 5/18/2006 Acquired iVillage for $592MM Promoting new series on YouTube 3/06/2006 6/27/2006 Acquired iFilm for $49MM Agreed to distribute MTV content over Google’s AdSense network Announced pending acquisition of Atom Entertainment for $200MM 10/13/2005 8/07/2006 8/09/2006 8/1/2006

page 4 Grouper Stands-out Among Acquisition Candidates Viable acquisition candidates limited to at least 1MM unique users to demonstrate potential scalability of operations Target U.S. Unique Users (MM) Acquisition Considerations Prohibitive valuation (rumored to be seeking over $1BN) Technology weaker than Grouper Owned by Viacom 1.7 Viacom acquisition pending as part of Atom Entertainment deal 2.6 Secured $15MM in funding July 1, 2006 Believed to be off the market 3.0 Performs well against acquisition criteria –Strong management –Differentiated technology –Demonstrated traction

page 5 Grouper Overview Service Summary SPE’s acquisition would include total consideration of $65MM –$52.5MM at closing –$12.5MM tied to performance metrics (revenue, streams, employee retention) Entered into exclusive negotiations with SPE through 8/18/2006 Multi-platform Video Distribution Network focused on watching, sharing, and creating user generated video Experienced management team Syndicates video to other sites through one-click posting (MySpace, Friendster, Everyone’s Connected, WordPress, Blogger) Leverages P2P proprietary technology; increases video quality; decreases delivery costs Enables video portability to multiple devices (PSP, iPod) Widely distributes easy-to-use video editing tools (Proprietary client, Instant upload from cameras, camcorders, and webcams) Differentiators Deal Status Demonstrated Traction #2 independent video community (Hitwise May report), with 7MM global unique users/month (3MM US) Reaches a young demographic that is 58% male Over 112,000 uploaded videos programmed across multiple genre-based channels

page 6 Grouper Would Provide Opportunities for SPE and Sony Could help facilitate complementary services efforts –Enable users of Sony cameras and camcorders increased interactivity with content –PSBG eyeVi initiative selected Grouper to develop its service prototype Addresses the growing area of ad-supported user-generated content Enables SPE to participate in the growth of online advertising Management team has demonstrated required expertise in industry Company has developed differentiated technology and tools Existing business has demonstrated traction and strong growth Platform for SPE to market and distribute studio content online Leverages SPE’s ad sales relationships and provides cross-platform ad inventory Build software capabilities Address core business challenges in meeting growth objectives Standalone Business Growth Opportunity Traditional SPE Business Opportunity Could Provide Value to Sony Devices Could Provide Value to Sony Devices

page 7 Grouper Service Highlights: Watch Videos Home page with “video wall” of user generated content (80% click- through) Content can be discovered through: –Rotation in video wall –Search –Channels

page 8 Grouper Service Highlights: Share Videos 1.P2P client enables download of original, high quality files to desktop and portable devices 2.One click publishing to other sites 3.Instantaneously add video comments via web cam 4. to friends in users’ MSN, Hotmail, and Yahoo accounts

page 9 Grouper Service Highlights: Create Videos Real-time recording and upload from web cams Proprietary client with easy-to-use editing tools –Select video –Select photos and tracking / panning effects –Select music

page 10 Conclusions Represents a compelling standalone business opportunity Provides SPE opportunity from the growth of online advertising Provides upside opportunity as Grouper leverages SPE’s content and advertising sales, and SPE’s traditional businesses work with Grouper Offers potential support for other Sony businesses and additional digital services

CONFIDENTIAL Grouper MRP Highlights

page 12 Grouper Strategy Overview Bolster baseline User-Generated Video (UGV) with premium and exclusive content Facilitate UGV based on interaction of users with premium content Enhance feature set for Grouper users Expand functionality of embedded player for potential distribution partners Integrate deeply with Sony devices Build robust distribution network Partner with vertical content sites enabling Grouper functionality Content Product / Service Distribution Marketing/ Promotion Marketing/ Promotion Leverage marketing muscle and promotional events of SPE Execute aggressive PR Monetization Monetize content via advertising, sponsored placement, and ad-supported search Differentiate service Build audience Generate revenue Goals

page 13 Four-pronged Content Strategy to Build the Grouper Audience Produce original, low-cost short form video –G-Studios –SPE Digital Studios Acquire or license premium, niche video to fill out portfolio (e.g., Speed Racer) Incubate user creativity with studio- supplied content and call to action promotions Distribute professional content –Movies and television –Short-form video from SPE divisions –Sports and music Existing User-Generated Video (UGV) Video Expansion Strategy Baseline Video Expand Grouper Audience

page 14 Grouper Will Bolster Current UGV With a Spectrum of Quality Video Prosumer Professional Short-form User-generatedG-Studios Studio-seeded UGV Television & Movies Professionally produced short form (e.g., “Stooped Monkey”, SPT 360) Minisodes DVD extras “Magic Moments” Music videos Sports clips TodayFuture Incubated stories from aspiring independent talent thebacklot.tv Low-cost short form video produced in- house (e.g., “Puppet Jesus”) Library and direct-to-video feature films Catalog TV series Busted TV pilots Baseline UGV Mash-ups Passionate branded communities around studio content Hosted mash- ups integrating studio assets UGV based on branded properties, e.g., Sports Leagues

page 15 Syndicate content broadly via embedded player and 1-click publishing Capture broad distribution through prioritized partnerships with select websites –High-traffic: Online portals –Demographic-relevant: Social networks –Popular verticals: Sports, Music –Other: TV-affiliates, Radio stations, News –Mobile: Third-party D2C websites, Carrier websites Create and syndicate Grouper Branded Channel across Internet and mobile platforms Leverage Sony hardware brands and reach through embed deals –Sony Electronics (e.g., cameras, VAIO) –PlayStation Centralize distribution of original SPE-produced video from all divisions Grouper will Distribute Its Content Across a Broad Network Comprised of Grouper, Partner and Sony Assets

page 16 Overview of Grouper Revenue Strategy Video ads Sponsored placement Search Banner ads Traditional banner and rich media graphical ads driven by page views, banner CPM, and inventory sales rate Leverage SPT and SPTI ad sales Incorporate with offerings to traditional customer base Expand to new clients Dedicated new media sales force Leverage ad agency relationships Revenue driversDescriptionOperational Approach Leverage distribution relationships Strike partnership deals with major internet portals (e.g., Google) In-stream pre and post roll ads placed in 1/4 to 1/3 of videos driven by number of ad-supported streams, ad duration, video CPM, and inventory sales rate Premium advertising, placement, and promotion bundles customized for select major advertisers Contextual video ads delivered during the search process Ad Revenues Commencing Early CY 2007

page 17 Marketing and Promotion Strategy Will Fully Capitalize On SPE Ownership Build brand awareness through Grouper hosting of Splash pages for SPE films –E.g., Open Season page at Leverage major upcoming SPE theatrical releases via UGV promotions and contests –“Pursuit of Happyness”: win an internship based on video job interviews –“The Holiday”: win a dream vacation –“Spider-Man 3”/Target: studio-seeded UGV contest Aggressively publicize unique new content offerings that utilize Sony assets and talent –“Magic Moments” –Grouper Short Film festival –“Grouper Groupies”

CONFIDENTIAL Appendix

page 19 Challenges and Mitigating Factors Mitigating FactorsChallenges Customer retention / increased competitionDifferentiated technology provides a better user experience than competitors Syndication of content to other sites (less dependent on “fads” in user taste) Integration challenges Structure retention incentives for acquired management Potential lack of interest by advertisersGrouper’s first deal is in place with MTV Google/My Space deal demonstrates advertiser interest in social networks/user generated content Potential for infringing or indecent content on site Grouper removes infringing content Grouper bans users and /or terminates accounts of users who post such content Separate branding from Sony IP-related issuesBase Case assumes reserve for potential license of patented IP Full Inventory of potential patentable Grouper IP to be completed post acquisition

page 20 Comparable Company Analysis Supports a $80-$110MM Valuation Recent Fundings Recent Acquisitions Analysis excludes Viacom’s August 9 acquisition of Atom Films for $200MM $80.8 $113.4

page 21 SPE Projections – Base Case (lower than Management Case) (1)EBIT reflects operating profit less estimated amortization of technology/software assets totaling $20MM over 7 years. Initial estimate requires third party review for final figures. Assumes transaction close at 9/30/2006. (2)4 year discounted pre-tax cash flow analysis ( ) performed with a discount rate of 16.5% (in-line with SPE’s normal rate); terminal EBIT multiple of 8.0x. (3)Total consideration includes $52.5m at closing; $12.5m contingent on performance and paid over the course of 2007 through (4)Deepwater mark represents cumulative cash position.

page 22 Broad Digital Video Network Social networks Online portals Hardware / Embed deals VerticalsOther