CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 1 SPDP’s Strategic Objectives Improve Economics Reinvest in Higher Margin and/or Growth Businesses Explore New Opportunities Prioritize Imageworks around needs of SPA & Columbia, using excess capacity to service third parties Reduce facility size and execute on cost reduction initiatives at Imageworks Manage visual effects business on a break-even basis, only charging internal productions “at cost” (no profit) Increase SPE’s participation and success in family features market –CG animated films at the high end ($100MM+) and mid-tier ($25-50MM) –Animation/live action hybrids –DTV sequels Sheppard Aardman relationship for SPE Expand digital marketing services beyond SPE to third parties via Imageworks Interactive

CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 2 SPA’s new business plan will diversify its portfolio and lower its risk profile Fully integrated studio (SPA + Imageworks) Aardman relationship Utilize multiple business models Mitigate risks of titles in production Securing theatrical release of Open Season 2 in select international markets Seeking opportunities for third party financing Aggressively work with Worldwide Marketing to secure optimal promotional partners High-end CG animated films ($100mm+ negative costs – e.g., Cloudy), released every months Mid-tier CG animated films ($25-50mm), released every months Live action/animation hybrids (Stuart Little, Smurfs), released annually Direct to video sequels (Open Season 2), release following successful high-end films and prior DTV sequels Diversify development & production slate Key Initiatives

CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 3 SPA Release Schedule FY09 Q4  Open Season 2 DTV (01/13/09) Q4  Open Season 2 DTV (01/13/09) FY10 Q2  Cloudy with a Chance of Meatballs (09/18/09) Q2  Cloudy with a Chance of Meatballs (09/18/09) FY11 Q3  Smurfs (12/22/10) Q4  Surf’s Up 2/TBD DTV (1/11/11) Q3  Smurfs (12/22/10) Q4  Surf’s Up 2/TBD DTV (1/11/11) FY12 Q3  Hotel T (9/20/11)  Arthur Christmas (11/11/11) Q4  TBD DTV (1/10/12) Q3  Hotel T (9/20/11)  Arthur Christmas (11/11/11) Q4  TBD DTV (1/10/12) FY13 Q2  Pirates (9/28/12) Q3  Smurfs 2 (11/09/12) Q4  Mid-tier TBD (2/15/13) Q2  Pirates (9/28/12) Q3  Smurfs 2 (11/09/12) Q4  Mid-tier TBD (2/15/13) FY14 Q1  Hotel T 2/TBD DTV (4/9/13)  Hybrid TBD (5/15/13) Q3  High-End TBD (9/20/13) Q1  Hotel T 2/TBD DTV (4/9/13)  Hybrid TBD (5/15/13) Q3  High-End TBD (9/20/13) FY15 Q1  Hybrid TBD (5/16/14) Q3  Aardman TBD (9/19/14) Q4  Mid-tier TBD (2/14/15) Q1  Hybrid TBD (5/16/14) Q3  Aardman TBD (9/19/14) Q4  Mid-tier TBD (2/14/15) FY16 Q2  Hybrid TBD (7/17/15) Q3  High-End TBD (9/18/15) Q4  TBD DTV (1/12/16) Q2  Hybrid TBD (7/17/15) Q3  High-End TBD (9/18/15) Q4  TBD DTV (1/12/16) High-End: 4 Hybrid: 5 Aardman: 3 Mid-Tier: 2 DTV: 5 Total: 20 Total by Film Type (FY09-FY16)

CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 4 Imageworks is shifting its strategy to better align with the needs of SPA & Columbia and focus on areas where it can differentiate itself Align production facility to needs of SPA & Columbia –Character and creature animation aligns with requirements of SPA productions as well as Spider-Man and Columbia’s other superhero-based productions –Primary focus is on serving the needs of internal productions and developing the optimal capabilities and cost structure to do so –“At cost” pricing model, with no profit to Imageworks from internal clients Specialize in character/creature animation work –Enables Imageworks to differentiate itself with capabilities that are not easily commoditized (performance-based animation) –Generates higher margins than other work –Attracts the best talent to the facility Pursue third-party work on opportunistic basis –Reduce overall size of facility so that it is no longer dependent on generating a large volume of third party business to break-even –Expand facility on temporary basis, only if work fits strategic positioning and offers attractive profit margins (10%+), with clients covering all incremental costs of expansion and post-show reduction Farm out work to third party facilities –Outsource work to other facilities where possible – reduces costs of SPA/Columbia productions and increases margins on third-party shows –Develop relationships with other visual effects houses to support this strategy Move to a production-based operating model –Hire talent on a production basis (vs. staff hires) to reduce holding costs between shows and manage down overall compensation levels (salary & fringe) –Fully-integrate HR to better manage headcount and labor costs Migrate 2/3 of artists to lower cost/tax advantaged locations (e.g., New Mexico, India, Canada)

CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 5 Since the management changeover, SPI has pursued $50MM+ in cost reductions, including 153 employee terminations (20% of work force) * Figures represent cash savings. Total FY09 EBIT impact of savings is $45.7MM Key Actions Taken FY09 Financial Impact (vs. budget) Reduced artist headcount in proportion to projected revenue (102 artists terminated since 3/15/08; total reduction of 57 artists, net of recent hires for new projects) $39.5MM Restructured organization to reduce non artist headcount (36 non-artists terminated since 3/15, an additional 15 identified for termination) $3.7MM Cut all non-essential capital expenditures $1.6MM* Put construction of Mesa Del Sol facility on hold – currently utilizing cheaper space in downtown Albuquerque $6.9MM* Reduced hardware & software maintenance $1.1MM Vacated Tower building and Building O $0.8MM Other savings $0.2MM Imageworks Total Savings $53.8MM SPA has reduced it headcount by 14 (from 103 to 89 FTEs) $2.0MM

CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 6 SPI is pulling additional cost-reduction levers to improve EBIT by $15MM+ in FY10, mitigate future risk, and reach break-even by FY12 Additional Cost-Reduction Levers Continue to reduce non-billable headcount Consolidate overhead headcount with SPE & SPDP (IT, HR, etc.) Re-align underutilized resources as appropriate (e.g., leverage across SPE) Reduce average salary levels by redesigning the workforce in favor of younger, more energetic, les expensive talent, leveraging the IPAX program Reduce non-contractual salary increases Redesign employee benefits (both mix and eligibility) to reduce fringe rate Redesign bonus plan Reduce employee overtime Improve utilization of billable employees Redesign organization structure and management team Reduce employees under contract and/or make it easier to terminate contractual employees Implement better systems for performance tracking Increase density of existing office space and resize facility to new headcount levels Eliminate underutilized equipment, licenses, and office space Reduce maintenance expenses Maximize New Mexico production rebate Consolidate SPI data center with SPE Explore partnerships with Canada facility to increase tax rebates Simplify software (e.g., open source, off the shelf, JV with 3 rd party developers) to reduce maintenance & support, cut training costs, improve artist efficiency, ease sharing with outsource facilities, and make workforce more fungible Reduce Headcount Reduce Compensation Improve Efficiency Reduce Facility & Capital Expenses