DRAFT 1 Privileged and Confidential 3D: FACTS AND FIGURES FOR THEATRICAL RELEASES

2 3D Theatrical Distribution in the U.S. Average MPAA U.S. ticket price: $7.50 (2009) Average ticket price premium for non-IMAX 3D Today: $3.50 Projected: $2.50 Average ticket price for IMAX 3D: $14.58 (roughly a $7 premium) (2009)* Studio share of ticket price premium is 45-55%; however, studio pays $ $0.55 per ticket for glasses Theaters pay partial cost of glasses, actual manufacturing costs are $0.50-$0.75 (although recycling programs are bringing costs down per view) Theaters also pay RealD $0.50 per admission Asian Market Data Points There are currently about 1,600 Digital 3D screen in Asia, about 350 in Japan Until recently, the Asian 3D market was controlled by XpanD (90% share); they require special reusable glasses - Active Polarized - that cost $50 to $75 each and are battery operatedy This past year, prior to the release of AVATAR, RealD expanded rapidly through Asia (mostly China), and by the release of AVATAR, they had a 40% share of the market Motion Pictures 3D Facts & Figures * Per IMAX

3 3D Production / Conversion Costs Incremental cost to shoot/convert a film into 3D Cloudy with a Chance of Meatballs: ~$5M (converted in post production) Smurfs: ~$12M (will be converted in post production) Resident Evil: Afterlife: ~$10M (shot in 3D) Other upcoming SPE 3D titles include: Spider-Man, Tintin, Priest, Arthur Christmas and Hotel Transylvania Motion Pictures 3D Facts & Figures (Continued) * Per IMAX

44 Assuming 60-80% of box office from 3D and reasonable level of performance: Box office increases 21-27% based on higher ticket price *, before accounting for potential audience growth Studio theatrical revenue (net of glasses cost) is increased 13-17% ** The net revenue uplift is generally greater than the $5-12M increase in production cost to shoot/convert the film to 3D Motion Pictures Potential Gains from 3D Releases Domestic Box Office of Recent 3D Releases *Assumes long-term avg. ticket price premium of $2.50 (today’s average is $3.50). Excludes IMAX 3D, which has greater ticket price premiums. ** Assumes 50% studio share of global box office and $0.40-$0.55 per ticket cost of glasses. Recent 3D releases have seen significant share of box office from 3D ticket sales, driving higher revenue DBO (to date) $113M $115M $721M Potential Uplift from 3D Release 63% 70% 82% 37% 30% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cloudy with a Chance of Meatballs Alice in Wonderland Avatar 3D Box Office 2D Box Office

5 21 – 27% BO Increase Based on conversion of a 2D film that would have done $200M WWBO into 3D Using avg. global 2D ticket price of $7.22 (uplift analysis used average WW projected price rather than 2009 MPAA average of $7.50) and avg. global 3D premium of $2.50 (used lower forecast figure rather than current $3.50 premium) $200M WWBO / $7.22 = 27.7M admissions If 60% of tickets are converted to 3D, that would be 16.6M tickets sold at a premium x $2.50 3D premium = $41.6M additional WWBO (21% incr.) If 80% of tickets are converted to 3D, that would be 22.2M tickets sold at a premium x $2.50 3D premium = $55.4M additional WWBO (27% incr.) 13-17% Studio Revenue Net of Glasses Cost Increase Assumes blended global studio share of 50% of box office Studio share of $200M 2D box office would be $100M 60% 3D tickets: Share of increased BO net of glasses cost is $12.9M/13% incr. $41.6M WWBO x 50% = $20.8M additional revenue M 3D admissions x $0.475* per pair of glasses ($7.9M) = $12.9M 80% 3D tickets: Share of increased BO net of glasses cost is $17.2M/17% incr. $55.4M WWBO x 50% = $27.7M additional revenue – 22.2M 3D admissions x $0.475* per pair of glasses ($10.5M) = $17.2M Motion Pictures Methodology for 3D Uplift Example (Backup for Slide 4) * Projected global average

6 Motion Pictures Calculations for 3D Uplift Example (Backup for Slide 4)

DRAFT 7 Privileged and Confidential DIGITAL CINEMA ROLL-OUT

8 Motion Pictures Digital Cinema Rollout Update 23,100 digital screens estimated to be installed worldwide by the end of 2010 with 32,900 projected by 2011 o Today, there are over 8,000 digital screens in North America and 17,000 screens worldwide Easier access to capital has allowed deployment entities to gain financing for the installation of the digital screens o In North America, DCIP has received financing and will begin rollout with AMC, Regal and Cinemark (comprises > 50% of the market) Digital 3D is now the standard with 16 3D feature releases from Hollywood slated for next year (SPE will be releasing Kenny Chesney Summer in 3D in April 2010, Resident Evil: Afterlife in September 2010 and Priest in January 2011) o Today, there are approx. 3,500 digital 3D screens in North America and 8,300 digital 3D screens worldwide

DRAFT page 9  3D exhibition of feature films has successfully driven recent box office performance worldwide  “[3D has]…moved out of its adolescence to just be now a part of the cinematic art, used by serious filmmakers…I’m going to make all my movies in 3D, no matter the subject”– James Cameron, December  Studios have already had various successful titles and are aggressively planning for 3D releases of future titles  “[Alice in Wonderland’s]…3D component boosted the overall performance in a big way. [Alice]… begins an onslaught of 3D product entering the market in the coming months, with Paramount’s toon How to Train Your Dragon set to launch March 26, followed by Warner Bros.’ Clash of the Titans on April 2.”– Daily Variety, March 8, 2010  With the continued rollout of digital screens and growth in 3D screens, domestic exhibitors have embraced this new product and are actively looking to be able to carry at least two simultaneous 3D releases by 2011 Expansion of 3D Current Digital 3D Landscape Complexes 3+ Screens at a Complex 30% 17% Screens Only at a Complex 54%1,1141 Screen Only at a Complex %Locations 42%1,004 42%1,004 16%383 %Locations 100%2,079TOTAL 100%2,391 3,522TOTAL 3D Screens 5,905 Digital 3D Projection As of Janaury 2010 December 2010 # of Digital 3D Screens at a Complex North America Digital 3D Overview

DRAFT page 10 Worldwide Digital Screen Footprint 32,900 23,100 16,769 16,064 7,809 6,223 1,940 Projected Digital Screen Rollout as of January 2010

DRAFT page 11 Worldwide 3D Screen Projections as of January ,184 21,600 14,100 Source: Vendor-based footprint data; SPR/SPRI projections. Worldwide 3-D screens will continue to grow over the next few years

DRAFT page 12 Digital 3-D is being actively developed by vendors for the global marketplace  Real D is the leading digital 3-D vendor in the marketplace today  Disposable glasses Footprint as of January 2010* Vendors  Worldwide:  2,841 Sites4,688 Screens DISPOSABLE GLASSES REUSABLE GLASSES  Master Image is a Korean developer of 3-D technology for the theater  Disposable glasses  Worldwide:  563 Sites608 Screens  Uses color spectrum technology  Reusable glasses  Worldwide:  1,403 Sites1,915 Screens  Uses battery powered glasses that manages each eye separately  Reusable glasses  Worldwide :  856 Sites1,176 Screens Sony 4K is now actively promoting digital 3D in conjunction with Real D in North America and Europe * Source: Vendor-based footprint data and projections as of January 2010.

DRAFT page 13 Case Study: Alice in Wonderland Domestic Box Office Performance Breakdown (through 3/8/2010) Domestic Box Office Opening Weekend $115,243,654 Gross Domestic Box as of 3/8/10 $ in MM 70% 30% 3D IMAX Digital 3D Note: 3D and IMAX have totaled $80.9M total domestic box office. $80.9

DRAFT page 14 Case Study: Avatar Domestic Box Office Performance Breakdown (through 3/8/2010) Domestic Box Office Opening Weekend $720,607,444 Gross Domestic Box as of 3/8/10 $ in MM 82% 18% 3D IMAX Digital 3D Note: 3D and IMAX have totaled $590.0M total domestic box office. $590.0

DRAFT page 15 Case Study: Cloudy with a Chance of Meatballs Domestic Box Office Performance Breakdown (through 12/11/2009) Domestic Box Office Opening Weekend $113,076,648 Gross Domestic Box as of 12/11/09 $ in MM 63% 37% 3D IMAX Digital 3D Note: 3D and IMAX have totaled $70.9M total domestic box office. $70.9

DRAFT 16 Privileged and Confidential NETWORK GROWTH AREAS

17 Networks – Growth Opportunities (Per MRP with Addition of 3D Network) 3D Network in US with Discovery and IMAX Animax/AXN – full penetration in Korea India sports channel TV1-Hallmark – Australia swap SET HD – US SET Max – Italy channel GXT – Italy channel Tamil channel MGM channels Cine Latino – US/Latin Spanish language movie channel