Financial Summary and Strategy Updates for SPT, GSN, and FEARnet

[DRAFT]

SPT Financial Summary (SPT, GSN and FEARnet) EBIT Revenue $254 $230 $188 $188

SPT Total Revenue $1,511 $1,473 $1,360 $1,368

SPT Net G&A Expenses and Headcount Headcount 218 226 238 220 NOTE: Excludes 10-12 SPTAS headcount and 3-4 billing/collection/reporting headcount that will be requested if DISH Network ad representation deal closes.

Headcount NOTE: FY08 MRP included 10 DPG/thebacklot.tv headcount which are NOT being requested.

SPT Strategy Update • Core Assets • Programming • Ad Sales • Distribution and Library Sales • Game Show Network, FEARnet and ITN • Financials

“Seinfeld” EBIT Strategy Update • Develop 4th cycle sales strategy • Current station license runs through 3/11 • Current TBS license runs through 9/11 • Release Season 8 in 6/07 and Season 9 in 11/07 • Release 2 DVD Series compilations in 11/07 • Standard version has every season • Collector’s version includes special packaging • 430K Season 7 units sold w/limited marketing vs. 530K units forecasted and 1M units budgeted • Capitalize on online marketing outlets for future DVD releases (i.e. MySpace and Grouper) • Review potential for 08/09 Blu-ray release Budget Assumptions • Despite ad sales inventory being priced among highest in syndication, expect gradual ratings erosion • 07/08 Season M-F estimated rating of 4.8 vs. 06/07 rating of 5.2 • 3rd cycle cleared in 98.6% HH, guaranteed double run in 98.6% • Domestic DVD revenue through FY07: • $260MM since inception • $38MM in FY07 from Seasons 1-7 • Projected revenues: FY08: $46MM $37 $35 $30 $29

“The Young & The Restless/Days of Our Lives” Strategy Update • THE YOUNG & THE RESTLESS: CBS deal through August 2007; close to finalizing extension through August 2009 • DAYS OF OUR LIVES: NBC deal through March 2009 • The two highest rated shows on SOAPnet • Due to daytime soaps facing long-term economic challenges, SPT is working with networks to manage costs and increase viewership • THE YOUNG & THE RESTLESS • Revamped writing staff • Launched on SOAPnet • Highest rated daytime drama in HHs for 18 yrs in a row • #1 in key demos: 18-49, 25-54 and HHs • Only drama with a 2.0+ rating in 18-49 • New character introduced on Y&R, character’s background available on CBS.com and Verizon DAYS OF OUR LIVES • Providing promotional materials on NBC.com • 06/07 cost reduction plan is ongoing Budget Assumptions THE YOUNG & THE RESTLESS • $100M annual license fee extension through 08/09 assumed • SOAPnet assumed at $21.5K per episode (currently $18.5M) • ATL production cost growth of 3.5% [confirming] DAYS OF OUR LIVES • Contractual 07/08 license fee of $60M • SOAPnet contract at $22K per episode • 07/08 production costs assumes a decrease of 15% EBIT $48 $45 $43 $41

“Wheel of Fortune/Jeopardy!” Strategy Update • Renewed and cleared in 65%+ of the country through 2010-2011 and 2011-2012 broadcast seasons • Implemented online testing for Jeopardy! contestants • 100,000 applicants resulting in higher caliber contestants. Has created an online Jeopardy! community • Evaluate future use of Grouper • Utilizing new technology has allowed Jeopardy! to remain contemporary • Releasing 1st ever Interactive Jeopardy! DVD in association with Sony Consumer Products (Christmas ’07 Release) • 3.5M members in the Wheel Watchers Club • Mobile Opportunities: • New versions of the mobile Jeopardy! game utilizing Rock & Roll and Sports questions and brands • Create a branded application that supports video playback • Send final Jeopardy! and WOF video clips to mobile users • Working with Google to create a co-branded website with a puzzle board representing a Jeopardy! “Question of the Day” Budget Assumptions • Assumes slight ratings decline offset by increased CPM • IGT advances unrecouped • Wheel of Fortune 07/08 production costs assumes 0% growth • Jeopardy! 07/08 production costs assumes a decrease of 5% due to one-time HD stage costs and remotes in 06/07 EBIT $96 $96 $89 $87

Programming Update Strategy Update Network • Leverage the strength of our overall deals • Sign one “big” writer to an overall term deal • Expand programming into the reality genre • Partner with networks to secure the future of our shows through marketing partnerships and digital initiatives • All pickups to-date are from existing overall deals • Signed Mitch Hurwitz to an overall deal • Michael Davies development: Power of 10, The Dating Game and Chain Reaction (picked up for 2nd season by GSN) • Partnered w/CBS & TiVO to stream the first 8 min. of Rules of Engagement for TiVO subscribers • Create a signature comedy for cable • Work with emerging networks to develop their own original content • Capitalize on the success of cable dramas to produce more scripted series • Debuted 2 new signature cable comedies – My Boys and 10 Items or Less • Sold Breaking Bad to AMC • Untitled Glenn Close drama well-positioned for F/X Cable • Co-develop game shows with King World • Launch new 1st run syndication programs with Tribune and other station groups in order to guarantee access to key time periods • Maximize court TV expertise to create and exploit efficiencies between multiple programs • Not launching in FY07. Exploring network/cable opportunites • Strategy shifted to capitalize on SPT’s expertise in the Court Show genre • The selling of a Court Show wheel (Young, Hatchett, Lopez) has been well received by ad agencies Syndication • Create digital short-form internet content – viral video • Utilize content already created (e.g., Gay Robot, library products) for online use • Creation of a single digital programming group • Gay Robot: Released full episode on BitTorrent and MySpace to create successful viral buzz • Jessie’s Diary: Based on the multi-platform success in Portugal, Sofia’s Diary • Minisodes: 3-5 min episodes of SPT’s library content. At least 600 episodes planned for FY08 Digital • Develop a slate of programs geared toward a 50+ audience • Pursue Culver Ent. licensing deal with Starz • Continue to develop series for direct to consumer distribution • AARP – exploring opportunities in all genres • Continuing to discuss strategic alliances with Starz • Pursuing iTunes deal • Busted Dane Cook pilots packaged for DVD release • Deal with CW for Spider-man animated series Culver Ent.

Programming – Network Pilot Pick-ups/FY07 Development Publicity My New Partner Smash Law Rats N.O.C Barely Legal Cashmere Mafia (P) American Family (S&R) (P) Suspect (P) The Thick of It (P) My Life is Now Self Help Wyatt Awake Eden Prairie Moms Assisted Living (L&R) Boots Briefs Wrights Brain Verdict Ordinary Joe Revenge of the Jocks Canterbury’s Law (P) Hackett (P) The Nut The Co-op Chance Macho Steve Dating Tara Cooley Think Tank Dime Pulse No Angels Saints & Strangers Georgetown The Get Down Lebrontourage Viva Laughlin (P) Angriest Man in Suburbia Untitled (Joel Stein) Miller Time G’Town Ladies Med School Project Cold Blooded Red Crane – SYNDICATION – Fort Pitt (P) The Watch Anonymous Lawyer Au Pair Combination Lock Joker’s Wild Judge David Young – BACK DOOR PILOTS – Flatliners SWAT

Programming – Cable Network Pilot Pick-ups/FY07 Development Kessler, Zelman, Kessler (P) Angry White Men Cop Out Riviera Corruption Show Not Another Teen Series (P) Fugly Held Up Life Laughs Untitled (Brigette Bako) Notebook Girls Public Nuisance (P) Manchild (P) Nighty Night Private Dick Zombie Land Middletown Celebridate (P) Breaking Bad (P) Town & Country Skin Deep Firebrand Mistresses Family Kinglare Biscayne Bay Statute of Limitations Uncommon Sense

Online video diary series of a newcomer to Hollywood with dreams of becoming an actress Web series with interactive elements Edited video footage of her day Web cam confessionals Produced by Paul Stupin (Dawson’s Creek) Based on multi-platform success in Portugal, Sofia’s Diary Potential distribution partnership with MySpace Digital Programming Group • Programmed on-demand network • Edited version of episode to 3 – 5 minutes in length • Utilize SPT’s library content (Charlie’s Angels, Diff’rent Strokes, Dilbert, etc.) • Launch with portal partners i.e. MySpace and Google to build brand awareness and then rollout channel to other online video destinations

SPT Production Assumptions Network: • DAYS OF OUR LIVES and Y&R continue • KING OF QUEENS and BIG DAY do not return • ‘TIL DEATH returns for a second season • 8 pilots in 07/08 and 08/09 seasons, resulting in 2 series per year • 2 TBD new series in FY08 • 10 MOWs (5 productions, 1 mini-series, 4 acquisitions) Cable: • THE SHIELD is produced for 7 seasons • RESCUE ME is produced for 4 seasons • THE BOONDOCKS is produced for 3 seasons • 4 pilots per year, resulting in 2 series per year • MY BOYS returns for a second season (contractual minimum 15 episodes) • 10 Items or Less returns for a second season (6 eps) • Untitled Glenn Close and Not Another Teen Series get ordered First Run Syndication: • WHEEL OF FORTUNE and JEOPARDY! continue • JUDGE HATCHETT returns for 8th season • THE GREG BEHRENDT SHOW does not return • JUDGE MARIA LOPEZ returns for a second season • JUDGE DAVID YOUNG launches in 07/08 Animation: • Spider-man Culver Entertainment gets produced • Changes vs. MRP • Network drama/comedy pilot mix • 2 new cable series vs. 1 • 10 Items or Less assumed for 2nd season • Judge Hatchett vs. Greg Behrendt • Judge David Young vs. Combination Lock

Programming – New Series Investment & Development ($96) ($89) ($88) ($84)

Programming – New Series Investment & Development Detail

Ad Sales Update Strategy Update Syndication • The strong scatter market provides a positive indication for this year’s Upfronts • Acquired Degrassi: The Next Generation & ReGenesis for :30 and :10 representation • Maximize revenue by expanding higher paying clients in Upfront • Expand portfolio with select program representation opportunities The :10 Solution • Increased number of new advertisers by +25% this season • Acquired Whacked Out Sports for :10 representation only • Expand client list with traditional :30 buyers • New programming representation opportunities 3rd Party Represent-ation • Continue to build High Definition ad sales with INHD • Seek opportunities to represent new ad sales businesses • Passed $1MM mark in INHD ad sales for the 06/07 season. Budgeted to generate $2.5MM for the 07/08 season • In negotiations with DISH to represent all non-direct response inventory. Budget includes $10MM Fee/EBIT • Launch ad sales for digital channels on AOL • Establish SPTAS as SPE and Sony’s digital ad sales group • Inventory sold out; advertisers include: Burger King and Chase • Launching ad sales for Grouper; negotiating with Sony BMG to represent Musicbox ad sales. Budget includes $1.5MM Fee/EBIT • SPT is actively seeking out additional digital ad inventory (Wind-up Records, Blip.tv, etc.) Digital

Ad Sales Update Sony Pictures Television Advertiser Sales is recognized as one of the leading sales forces in syndication “ Among the nine syndication companies rated in the Myers annual survey… Sony Pictures Television was ranked first among buyers, second among media planners” - January 11th 2007 The Jack Myers Media Business Report subscription newsletter is considered a "daily first-read," by more than 20,000 subscribers. Jack Myers Media Business Report is available through corporate subscription only.

Sony BMG Ad Sales Representation in Negotiation Exclusive representatives of video inventory of Sony BMG “Music Box” Service Currently serves 15 million streams per month, expected to double in the year SPTAS Commission = 30% of net proceeds (Gross – Agency Fees – Ad Serving Costs) 1 year term with a mutual option for a 2 year extension AXN and Funny Bone channels on AOL Successfully sold 1st channels distributed by ODE Plans to expand distribution of channels to more portals Blue Chip advertisers Chase Credit Cards Burger King Netflix Grouper Prepared to begin selling Grouper ad inventory (including video ads) in February Sponsorships Rich media interstitials between videos Skyscraper and Banners Search SPT Digital Ad Sales

SPT Digital Ad Sales Inventory Growth Strategy Third Party Online Video Inventory In-Game Advertising Ad Networks

Advertiser Sales Net Revenue (non-Internet) NOTE: Potential DISH Network and Sony BMG revenue excluded since both deals are in negotiations.

Advertiser Sales Net Revenue (Internet) $26 $24 [FIGURES TO BE FINALIZED, BUT CURRENTLY $10M FOR BUDGET] $4

Distribution and Library Sales Update Strategy Update PPV/VOD • Leverage day-and-date negotiations with DISH and DIRECTV to secure premiere channel placements • Expand on VOD rights to enable customers to sell on multiple platforms • Close a 3 year iNDEMAND extension without guarantees • Day-and-date not needed for improved PPV deal (Echostar). • Negotiating 3-year extension (through 12/31/10) for iNDEMAND • DIRECTV deal nearing closure w/new deal to go thru 1/12, improved PPV splits, $4M FOD sales over term, VOD (Push & Broadband) rights • Develop a plan for exercising the Starz extension option • Leverage Starz’s interest in VONGO to close DST deal • Pursue library deals with Showtime and HBO • Pursue Culver Entertainment licensing deal with Starz • Starz and SPT discussions initiated regarding extension option • Replaced 8 "3rd party rent-a-system" releases for Peter Schlessel/acquisition product in 07/08 Starz output deal with higher performing B.O. titles • Acquiring addtl. product (King of the Cage) to package with library deals • Culver Entertainment TV discussions to be further explored Pay TV Free/Basic TV • Develop a sophisticated movie database to better position SPE titles vis-à-vis the competition – will track movie performance by title, genre, and studio for SPT and competitors’ titles and include SPT research • Utilize creative carve-out and shorter window to retain network window value • SPT graded all feature films and tracks open windows (both short & long) • SPT sells current year open windows to the greatest extent possible, since this generates current year revenue • Movie database is almost ready to go live. All data has been inputted and testing begins by mid-February • Working with Digital Group regarding rights and windows to maximize revenue • [To confirm with Rohrs/Marx] • Graded all library films and put grading process in place • Focusing on FY08 avails for selling efforts • Pursue co-development deals with Tribune and other station groups to guarantee access to key time periods when launching new 1st run programs • Expand our streaming of products onto Local TV Station websites in conjunction with ODE (e.g. Minisodes, etc.) • Pursuing opportunities with NBC and Fox station groups to develop shows for the 08/09 season and beyond • Evaluate using Grouper application to stream products onto Tribune station websites • Judge David Young cleared in 23 of the top 25 markets, 80%+ overall Syndication

Distribution Sales – Total Revenue $868 $846 $694 $675

Library Sales Targets by Market Forecast $160M In-House $126MM $90M Budget $65MM • 2 year annual average of $125 • FY07 represents largest 1 year library sales total

Library Revenue Division Market $137 $133 $137 $133 $111 $111 $111 $111

SPHE Contribution to SPT Product Revenue Net Contribution $60 $168 $163 $56 $156 $154 $48 $44

SPTI & DSD (Digital) Revenue to SPT Product Revenue DSD (Digital) Revenue $221 $10 $200 $9 $181 $8 $171 $6

GSN, FEARnet and ITN Update Programming • Plans to produce a Saturday and Sunday participation block in early 2007 • Plans to build a 2nd small studio space to develop new, original formats in Q2 2007 • Building a team to produce broadband content for GSN.com including behind the scenes, interviews, and original content Advertising Sales • GSN has successfully utilized Playmania for advertising sponsorship and plans to continue to expand participation formats Content Distribution • GSN signed a 5 year extension with Dish and is currently negotiating with Charter and DirecTV for renewals • Signed contracts with Verizon and AT&T and will add subscribers as the Telcos rollout their services Future Growth • Evaluating several casual game developers for their library • GSN is developing a new branding strategy to rollout in the Q2 Divestiture Update • Engaged Salem Partners to perform valuation assessment of GSN and Fun Technologies as it relates to Liberty Media • Arrange meeting to discuss recommended strategies Programming • 2 originally produced web series by Sam Raimi • Basic Cable VOD Premieres of: The Exorcism of Emily Rose, Hostel, Silent Hill, Resident Evil, Open Water 2 and When a Stranger Calls Cable VOD Ratings • Top 10 VOD network out of over 200 • #7 VOD service overall in January • Averaging 6.4 million views per month Web Ratings • #1 Horror site in America (registered users, unique users and impressions) • Nearly 40,000 registered users Marketing Highlights • FEARnet/”The Messengers” user generated content contest launching on Youtube 1/15 Enhancements to FEARnet.com • Phase 2 Website redesign • Easily searchable exclusive and new content • My Gallery concept for User Generated Content (video, pics, stories, art, etc.) Mobile (Mike Arrieta – Project Lead) • SPE to include FEARnet on Sprint Channel and create wallpapers/ring-tones • FEARnet and SPE to create mobile video channel and mobile games Highlights • Q1 scatter results up 90% vs. last year • Brand centric strategy (Mom’s Time Network) paying off - $5M deal with major insurance company Potential New Sources of Inventory: Sony Platforms • SPE and ITN can work together to create advertising opportunities across ITN and many of Sony’s businesses/platforms (e.g., films, music, electronics, video games, etc.) Growth Strategy • Develop a multi-platform solution: Broadcast Television, Broadband, Digital Stations and Content • Continue to develop state-of-the-art software that enables ITN to interface with multiple, pre-existing technologies Potential Acquisition Targets • ARM, Telemerica, Medialink, Dayport, Waterfront Media, Worldlink, etc.

GSN and FEARnet – Financials (Share of Net Income) GSN FEARnet FY07 Budget FY07 Forecast FY08 MRP FY08 Budget

SPT – Summary Financials

SPT – Major Contributions to Earnings

SPT – Earnings Comparison (Forecast vs. Budget, MRP vs. Budget)

SPT – Earnings Comparison (Year vs. Year)

Financial Summary and Strategy Updates for SPT, GSN, and FEARnet