“ From the Idea to the Financing” Nothing is Impossible

1. “From the Idea to the Financing”Nothing is Impossible Barry D. Lederman, Managing Partner Shelbourne Capital Partners LLC Bulgaria Investment Forum April 14-15, 2004 Sofia

2. General Requirements • Strong Business Case and Management Team • Hands-on and Visionary Founder • Comprehensive and Honest Market Assessment, both Domestic and International • Professionally Prepared Business Plan and Financial Model • Sound Legal and Investment Advice • Beauty Pageant Approach for Qualified Interested Investors

3. General Mistakes • Not providing for alternative investors and structures • Over-promising in the business plan and financial engineering of future cash flow, creating unrealistic expectations at outset • Under-estimation of initial capital and successive requirements • Poor first 90-day post-investment execution strategy • “Do-it-yourself” attitude to outside professional services • Failure to supplement “pals” with credentialed management team and board members

4. Raising the Money • Do your homework: • Research financing sources and their preferences in prior investments • Study comparable recent deals in the industry • Look for international investors • Network, network, network • Structure any debt financing cautiously and intelligently. Get a second opinion. • Employ professional legal and financial advisors and let them “carry the ball.” Don’t be afraid to “pass the ball” downfield.

5. Closing the Deal • Do not compromise your business plan: walk away from a bad offer • Take more money than you can handle – and find a way to put it to work • The relationship with the investor is as important as his investment in the company • Negative types of control for founder • Consummation of the deal is like a marriage

6. Shelbourne Capital Partners • Investment and strategic advisor • New York, Los Angeles, San Francisco, Zurich, Munich, Sofia, Istanbul • Management background • Investment planning and financial principals • Extensive experience in media, including film and TV • Business partners: • Constellation Partners • Van der Moolen, New York Stock Exchange Specialists • Financial Dynamics, Financial Public Relations • Jenkens & Gilchrist, Attorneys • Big four accounting firms

7. Our Deals • Media, entertainment, communications, and technology opportunities • U.S. and European deals: • Real Image Digital/Technicolor/Thomson S.A. • Digital Cinema Solutions • Flexplay • BrandX • The Advisory Council • Boyana Film Studio • Southeast European Financial Consortium • Private Equity Opportunities in Bulgaria and Turkey

8. SEE Opportunity – Boyana Film Studio • Leading motion picture production and post-production facility in Southeast Europe • Pan-European and American strategic and financial partners • Extensive Hollywood creative, technical and professional relationships • Growing international demand for low-cost production services • Strong management team and partnership opportunities

9. Boyana Film Studio – Beyond the Obvious • Opportunity to enhance Bulgaria’s national image and attract the attention of the global entertainment industry • Professional training in US film academies for Bulgarian craftsmen, actors, and film executives • Education for children from Bulgaria and the region • Entertainment, media and technology park

10. Impossible is Nothing

11. Coordinates Allen Collinsworth Vice President, Turkey collinsworth@seefc.com Barry D. Lederman Managing Partner The Chrysler Building 405 Lexington Avenue New York, NY 10174 Tel. +1 212 704 6043 Fax +1 212 704 6157 Email: lederman@pacbell.net Rado Petkov Vice President, Bulgaria petkov@seefc.com Los Angeles San Francisco Munich Zurich