Member Station Affiliate Program

1. Member Station Affiliate Program

2. Our award-winning products provide an outlet for retail partners to generate revenue and support PBS • PBS Video aggregates many of the great programs that have aired on public television and distributes them through a wide assortment of distribution channels • PBS business extends from traditional retail to direct-to-consumer channels • Product supported by new mass retail distribution partner, Paramount • PBS Direct-to-Consumer distribution with new partner GSI Commerce • PBS Educational Video extensions • 250 Unique on-air DR campaigns viewed by millions of people per year • 500+ new releases each year • PBS acquires 3rd party titles that appeal specifically to the PBS demographic • Dedicated staff focused on sales, marketing and merchandising

3. PBS Ecommerce Merchandising • Over 4,000 products carried in store • Over 50 special interest categories • History • Arts • Issues & Events • Over 300 PBS Kids products across 10 properties • Plush dolls • Bedding • Personalized products • Wide selection of program related merchandise • Books • CDs • Over 500+ new products added per year This is a sku intensive business, driven by volume to make money Q1’07

4. PBS Direct-to-Consumer Distribution Channels PBS has three distinct direct-to-consumer distribution channels that have enormous reach and potential • PBS Home Video Catalog • 8M Circulation • Promote membership • ShopPBS Online • PBS On-Air offers ShopPBS was named one of the top 400 ecommerce sites by Internet Retailer Integrated across channels to ensure a holistic customer experience

5. 2007 Online Stores50+ Net Merch Sales$1,000,000,000+ Visitors795,000,000 Pages Served11,170,000,000 Active SKUs3,170,000 Unique Images & Descriptions6,800,000+ Orders 14,700,000 GSI’s Leading Retail Partners

6. GSI Commerce Company Overview • Headquarters in King of Prussia, PA; (NASDAQ: GSIC) • 2,400+ employees across the organization; ~475 in technology • Common Engine™ and Technology Services teams • Three fulfillment centers in KY (~1,500,000 sq. ft. ) • Purpose-built for multi-category direct fulfillment • Expect to ship 32.7 million units in 2007 • Manage a ~600 drop ship network • Two customer contact centers in Florida and Wisconsin • 500+ seats each, with category-trained CSRs • Associates drive 10-30% of partners’ direct revenues • Expect to manage 12,000,000 contacts in 2007+ • GSI International based in Barcelona, Spain • 12 languages, 10 currencies, 43 countries • GSI International partners include HP, Skype, Logitech and Iomega • Planned Asian language support in 2008

7. Services Provided by GSI Commerce

8. Layout & navigation • Daily updates • Boutiques • Top Sellers • Recently Featured • Fully Integrated Promo • Engine • Features & Benefits Tables • Shopping & Merchandising • Comprehensive cross-sell/up-sell • Back-order/pre-sell • Product Bundling • Email a friend • Real-time content • Multiple product views • Product Collections • Product Sequencing • Cross-Category Product Population • Back-Order Management • Pre-Sell Management • Related content • Personalization • Targeted messaging • User registration/login • My Account • Order History/Tracking • Personalized recommendations • Wish list • Email A Friend • Address book • Cart & checkout • Gift Card Redemption & Purchase • Persistent Cart • Accept Multiple Forms of Payment • Standard & Expedited Shipping • Canada • Ship Windows by SKU • Delivery Options by SKU • Drop-Ship Management • Real-Time Tax Calculations • Real-Time Shipping Calculations • Local tax calculator • Secure checkout • Gift Wrapping & Messaging • Search • Filtering • Spell check/stemming • Advanced indexing • Synonym mapping ShopPBS.com Features

9. GSI Commerce Customer Contact Center • Phone & email support • 24/7 operations • Skill based routing • Event management • Escalation procedures • Interactive voice • response • Call re-routing • Sales & service • segmentation • Automated phone orders • Inbound contact • Cross sell/ up sell • Real time inventory view • Transaction history • Corporate/group sales • Call center access • Basic personal data • Customer profiles • Service history • Previous purchases • Personal preferences • QA & training • Remote monitoring • Partner seminars • Rigorous hiring standards • Training rooms and auditorium • Online training tool • Mentoring/feedback ensures quality service • Integrated performance appraisals Dedicated PBS Customer Contact Team already in place

10. Inventory control • 4 cycle counts per year • Daily cycle counting • Intensified counting of • high value items • Receiving & put away • Flexible receiving capability • All SKUs profiled • 7 day/week receiving • Storage • Bin size/location • optimization • Air conditioned facility • Wide variety of • shapes & sizes • Shipping management • Rate shopping • Zone skipping • Multiple carrier relationships • Product profiling • Shipping windows set at SKU level • Reverse logistics • Returns processing • RTV management • Reconditioning • Pick & pack • Pick to cart (by order) • Carton size optimization • Multiple systemic QA • checks • Value-added functions • Gift-wrapping • Gift messaging • Gift cards • Pre-sell management • Product bundling • Package inserts/bounce backs • Bulk orders • Back-order management • Security • High-value goods stored in secure storage systems • 24x7 digital security cameras • Security staff at all entry/exit points GSI Commerce Customer Fulfillment Center

11. Affiliate Program Overview There is an opportunity for member stations to capitalize on the ShopPBS ecommerce solution at no cost or risk and to share in the financial success from the sales of these titles to your viewers What - Promote commerce to your viewers and earn money on every purchase that comes from them Why - Stations will generate new revenue and increase member loyalty at no cost to the Station

12. INCREASE REVENUE Increase Membership & Customer Loyalty NO SUPPORT COSTS Affiliate Program Goals Our Goal is to present an easy way for all PBS Member Stations to generate new revenue streams through e-commerce and to monetize web traffic to benefit the station

13. Affiliate Program Benefits INCREASE REVENUE • Generate new revenue by offering all PBS titles, including DR titles at the same time the national spots are running • Begin selling other PBS merchandise including a wide selection of popular PBS Kids items • Best of Breed e-commerce platform leads to high conversions and generates new sales • Improved user interface helped grow PBS e-commerce revenue by 45% If you don’t make money, we don’t make money

14. Affiliate Program Benefits Increase Membership & Customer Loyalty • Large and diverse product offering will produce unparalleled shopping experience. Customers will come back more often to see what is new in your store • Customers will receive superior support by a dedicated Customer Service and Call Center team • Happy customers = higher future donations and potential new members Your Members are shopping online – they can be spending their dollars with you!

15. No inventory costs • No IT costs • No capital expenditures • No customer service costs • No overhead • NO HEADACHES Affiliate Program Benefits NO SUPPORT COSTS A $1Billion e-commerce infrastructure at your disposal

16. Affiliate Program Business Terms Revenue Share Opportunity • Participants in the Member Station Affiliate Program will receive a revenue share of 12% of sales. (This is Net Revenue to the station!) Standard Affiliate Commission 10% Local Station Affiliate Commission 12 % Your level of participation determines your level of profit

17. Overview • Member Stations market titles and merchandise to your viewers: • On air • Online • In outbound emails to member base • Within program guides • Direct mail • Other • Member Stations receive 12% of all sales resulting from customers that were referred by the Member Station • There are no minimum sales requirements to earn commissions • Member Stations are provided an online reporting tool to monitor sales activity through LinkShare

18. Summary of Benefits • A new revenue stream for participating Member Stations • Opportunity to venture into e-commerce without diverting precious funds from programming or from your station’s content website • Opportunity to provide your viewers the best products and service • Increased member loyalty as your station becomes the viewer’s main resource for all things PBS • Monetization of web traffic World Class Store = Happy Customers = Happy Members

19. Member Station PBS & GSI On-Air Spots Process Orders Fulfill Orders On-line Promotions Customer service Email Marketing Merchandise and Manage Web Store Program Guides Affiliate Program Overview The PBS Affiliate Program enables you to be profitable from Day One!

20. Next Steps • All parties sign PBS/Member Station Online Affiliate Contract • Member Station signs LinkShare Affiliate Network agreement available on the website • Kickoff marketing meeting to discuss implementation and strategies for increasing revenues for the station.

21. Appendix

22. Marketing to Viewers On-air Promotions • PBS will produce generic spots promoting e-commerce that can be localized by Member Stations • Member Stations will run spots in local inventory • Spots have a call to action to purchase, driving traffic to your website or your unique store URL • (e.g. www.memberstation.org/shop) Now you can combine tune-in and sale messages and monetize your local airtime

23. Marketing to Viewers On-line Promotions • Member Stations integrate promotions for video titles on your station website or e-mail newsletter: • ProductModules • Banners • Buttons • Link in navigation bar • PBS will provide template graphics • GSI will track customers that come in from Member Stations’ websites so that Member Stations get credit for sales Our Online Marketing infrastructure will provide you with the tools to be successful

24. Marketing to Viewers Program Guides & Direct Mail • Member Stations will include full page advertisements in Program Guides directing customers to your web site or unique shop URL • Contextual mentions of your site within program articles and visual tags on programs available for sale within on-air guides • Include your site URL in all direct mailings • Remind your members of their special discount in their pledge fulfillment acknowledgements With new items to promote every month, your marketing messages remain fresh

25. JOIN US TODAY! http://www.pbs.org/remotecontrol/basic/shoppbs.html FAQ http://www.shoppbs.org/affiliate/index.jsp