1. Presentation to the Analog Reconversion Discussion Group October 22 nd /23 rd, 2003

2. Agenda  Company Overview  CGMS-A + V-RAM  CGMS-A Component  VEIL – Rights Assertion Mark Component  Technical Summary of V-RAM  Q & A

3. VEIL Interactive Technologies  Video Encoded Invisible Light  Founded as ISI in Beaverton, OR in 1986  Privately Funded  Specialize in video communication systems  VEIL’s underlying patent issued in 1989  VEIL Technology is used everyday throughout the US

4. Applications of VEIL Technology  Adapted to a wide variety of applications  Simple, inexpensive, disposable devices  Complex broadcast equipment  Competitive Media Reporting – Broadcast Verification System  Interactive Toys  Interactive Promotions

5. CGMS-A + V-RAM  Concept present by Warner Bros. on May 7 th 2003  If CGMS-A is lost or stripped:  All rights information is lost  No indication rights information was ever present  Veil encoded Rights Assertion Mark (V-RAM) adds robustness  Signals that rights have been asserted and are carried in CGSM- A CCI information and, if present, the RC state  Inexpensive, Simple, and Adoptable Licensing Terms

6. CGMS-A+ © line 20/21 (1,1) Vertical Blanking Interval Rights Assertion Mark A mark in the image part of AV content CGMS-A (w/RC or w/o RC) In the vertical blanking interval. “Copy Never”, “Copy No More”, “Copy Once”, “Copy Freely”, (and RC if present) A visible © is shown ONLY for illustrative purposes +

7. CGMS-A+ Logic Table *If RC bit is present, redistribution is controlled by RC bit (RC has precedence) CGMS-ARAMActionRedistribution* Copy FreelyNot presentCopying allowedRC bit, else not controlled Copy FreelyPresentEncrypted copy permittedRC bit, else not allowed Copy OnceDon’t careEncrypted “Copy No More” copy permitted RC bit, else not allowed Copy No MoreDon’t careCopy not permitted, display onlyRC bit, else not allowed Copy NeverDon’t careCopy not permitted, display onlyRC bit, else not allowed Not present Copying not controlledNot controlled Not presentPresent“Copy Never”, copy not permitted, display only Not allowed

8. CGMS-A Component  Conveys the Copy Control Information (CCI)  CGMS-A is modified to remark the content  CCI is carried in the VBI  International open standard  Mature, deployed technology

9. CGMS-A Only Limitations  What if CGMS-A is lost?  All rights information is lost  No indication rights information was ever present

10. VEIL – Rights Assertion Mark Basics  Located in the Visible Portion of the video  Validated by 3 rd party tests for Visibility and Robustness  Asserts that CCI must be present  For CGMS-A+ CCI is conveyed in the CGMS-A signaling  Links the CCI to the Visible portion of the video  Mature, deployed technology

11. VEIL – Rights Assertion Mark Embedding and Recovery  Embedded by custom hardware in real-time prior to DVD authoring  Embedding is upgradeable  No requirements placed on playback devices  No changes for remarking content  Detected at the same point as CGMS-A CCI  At the point of Analog to Digital Conversion  Simple to recover  Inexpensive to implement

12. V-RAM Technology Summary  Amplitude modulated system  Adjust luminance level on alternating lines  Subtract adjacent lines to recover VEIL  Probability of false detections less then 10 -12

13. V-RAM Results

15. Contact Information Scott P. Miller Vice President – Business Development VEIL Interactive Technologies, Inc. One Memorial Drive Suite 2000 Saint Louis, Missouri 63102 (314)345-1079 scott@koplar.com