Imageworks Opportunity March 2010

1. Imageworks Opportunity March 2010 CONFIDENTIAL

2. Potential Imageworks Sale Opportunity SPE has been approached by two parties interested in acquiring Imageworks 2007 Value was estimated at $70 to $90MM; current value may be lower as FYE2008 and FYE2009 earnings were negative Henry Gong was introduced to Rob Wiesenthal by Goldman Sachs and is interested coordinating a deal lead by Chinese firm TellHow CCL is a privately held media and entertainment company operating in India that previously approached SPE about buying Imageworks back in September 2009 Since the last sales process, Imageworks has made significant progress Imageworks has reduced its non-billable cost structure by over 70% since FY08 SPA saves ~ $20 to $30 mil per film by using Imageworks vs. external suppliers Imageworks has developed expertise in 3D and gives SPA and Columbia a dependable supplier SPE needs to determine whether to proceed or pass, and if proceeding, to structure a deal that retains strategic benefits Target percentage to sell and sale price Determine contractual relationship for services that guarantees low cost Secure access to dedicated resources page 1

3. Ownership Key Business Strategies Recent Events Primary Lines of Business Interest in Imageworks Century Communications Limited, a privately held media and entertainment company with operations in India and the UK, has expressed interest in acquiring Imageworks • Film production and post-production services in India and the UK with an apparent focus in animation • TV production services in India • 9 radio stations in India • Media services, e.g., ad sales, corporate branding, ad production, in India • Leverage cost arbitrage opportunities (e.g., tax breaks, cheap labor) in India and the UK to offer low cost production and post production services to the US and Europe • Source new business and expand operations through investments and acquisitions • Acquired majority stake in Men-From-Mars, a London-based boutique post production facility, in 2007 • Acquired majority stake in London-based Molinare, the largest privately held post production facility in the UK, in 2007 • Privately held • Looking to acquire a sizable US west coast facility to base “high end operations” and source additional production projects

4. Gong’s partners have expressed interest in both Imageworks and SPA • If acquiring stakes in both Imageworks and SPA, Gong would create a consortium of investors including: • Gong as an principal investor • TellHow as an operating business (a subsidiary of Tsinghua Tongfang, a Chinese firm with IT and energy holdings) • Financial backers, potentially including Thomas H. Lee • For an Imageworks only deal, TellHow would lead and is open to acquiring a 51% to 100% stake with long-term relationship with SPE • All cash deal for 51% to 100% of Imageworks • Driven by TellHow with co-investment from its financial partners • Relocation of production work, including required staff and facilities, to China • Retention of North American base to develop technologies and expertise • Long term services contract with SPA • Desire to explore an IPO in Hong Kong with funds used for eventual international expansion

5. APPENDIX CONFIDENTIAL

6. Current value considerations relative to 2007 value Imageworks Valuation ($ mil) • Argue for similar value based on forward EBITDA roughly comparable to values in 2007 • Downward pressure would be driven by • 24% decrease in public market values since 2007 • Significantly lower trailing EBITDA 1) Forward EBITDA based on available information at the time of analysis (7/2007). Forecast years include FY08, FY09 and FY10

7. Preliminary Gain Estimate Potential Gain on Sale of Imageworks ($ mil) * Assumes SPE's basis is after deducting $1.8MM for Frameflow's 25% non-controlling interest in Imageworks India.  Need to validate that Frameflow's stake would remain intact as part of the sale and not be liquidated

8. Imageworks Historical and Projected P&L

9. Imageworks Historical and Projected P&L as of July 2007