Confidential Draft

Shine / Reveille Deal Considerations

December 12, 2007

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Reveille Business Considerations (Per SPT)• Most of the value in Reveille was built by Ben Silverman (in reality and

international) and Teri Weinberg (in scripted)

• Without Ben and Teri, we have concerns about the value of the business

• The limited data provided on the go-forward slate is extremely aggressive– 9 reality shows are expected to be picked up in the 08/09 season– We question Reveille’s ability to have this many shows picked-up, particularly without

Ben’s involvement– As a benchmark, the only year with more than 9 shows picked up was 05/06. In that

year, several shows were small cable shows dependent on time buys structured by Ben– Once picked-up, Reveille model assumes all reality shows are on-air for at least 3 years;

this is out-of-line with industry success rates

• As of December 12, we are still waiting on more detailed diligence materials, including

– Additional detail on nature of Reveille’s ownership and participation in its IP– Detailed financial and operating assumptions for new shows

Number of pilots Number of episodes per show Per episode costs Sources of revenues / distribution outlets by show

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• Salter’s December 10 draft report included preliminary analysis of Reveille’s existing shows, management team, and market position

• Salter has not yet analyzed the go-forward slate. We believe this is the more aggressive subset of the Reveille model and the area of greatest risk

Reveille Business Considerations (Per Salter)

• Modified profits on existing financials downward as follows

($MM)2008 2009 2010($2.6) ($5.8) ($25.2)

• “Young . . .” “not as strong as Ben Silverman at this stage in their careers”

• “ . . . Not currently viewed as potentially being able to direct Reveille to substantial growth beyond its core businesses, particularly in the areas of scripted programming”

• Well positioned “so long as Ben Silverman maintains his current position”

Cons

• Identified upside from back-end participation in “The Office” and “Ugly Betty” in years 2013 and beyond

Pros

• “. . . The consensus opinion was that Key Management’s current lack of comparable strengths would be overcome over the course of the next three to five years”

• “Diverse production company”• Strength in “international sale of

television programs and formats”

Financials

Management

Market Position

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Sony Strategic Considerations

• Assuming no IP rights from Reveille flow to Sony, further investment in Shine/Reveille will not provide strategic benefits

– Sony has not yet been shown any programs for US distribution under Shine’s current output distribution agreement

– The Shine output agreement is unlikely to extend to Reveille– Shine is unlikely to structure a separate Reveille/Sony output deal given our

small minority investment position– If Shine were interested in structuring a Sony first look deal, it may be

pre-empted by Reveille commitments to NBC

• Sony investment in a Reveille deal could negatively impact an Embassy Row/Michael Davies acquisition

– Davies will expect a higher price from Sony if we support a Reveille acquisition at a 12.8x trailing EBITDA

– Reveille competes directly with Embassy Row for domestic distribution and international format sales

• The deal structure would be significantly more favorable to Sony with Reveille first look and distribution deals in place

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APPENDIX: SUMMARY OF REVEILLE SLATE

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Reveille Projected Slate -- Reality2005 2006 2007 2008P 2009P 2010P

REALITYPilots (Revenue $ 000)TBD PILOTS $1,893.0 $128.0 $4,000.0 $4,300.0 $4,000.0 $4,800.0Implied # of Pilots (assumes $1M per pilot) 2 0 4 4 4 5

SeriesCurrent30 DAYSDATE MY MOMMENUDONASHVILLE STARPARENTAL CONTROLTHE BIGGEST LOSEROSWALD BOATENG-REALITYOTHER PRODUCTBOUND FOR GLORYMEET MR. MOMBLOW OUTCELEBRITY COOKINGIDENTITYSHEAR GENIUSSTUDENT BODYAMERICAN GLADIATORSMY DAD IS BETTER THAN YOUR DADProjectedMAMA'S DAY PROJECTMOTHER LODETBD REALITY SERIES (MILLION DOLLAR ROAD SHOW)TBD REALITY SERIES (AD FIGHT)TBD REALITY SERIES (TBD)TBD REALITY SERIES 08/09-no. 1 (Smoke Jumpers)TBD REALITY SERIES 08/09-no. 2 (Eye on Target)TBD REALITY SERIES 08/09-no. 3TBD REALITY SERIES 09/10-no. 1TBD REALITY SERIES 09/10-no. 2TBD REALITY SERIES 09/10-no. 3TBD REALITY SERIES 10/11-no. 1 --------->>>TBD REALITY SERIES 10/11-no. 2 --------->>>TBD REALITY SERIES 10/11-no. 3 --------->>>TBD REALITY SERIES 10/11-no. 4 --------->>>

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Note: Number of pilots not yet provided by Reveille, pilot numbers abovehave been derived based on SPT preliminary assumptions for revenue / pilot

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Reveille Projected Slate -- Scripted

2005 2006 2007 2008P 2009P 2010PSCRIPTEDPilotsTBD SCRIPTED PILOTS $422 $200TBD SCRIPTED PILOTS- FUTURE $50 $200 $200Implied # of Pilots (assumes $200K per pilot) 0 0 2 1 1 1

SeriesCurrentTHE OFFICEUGLY BETTYTUDORSProjectedNew Series 1 (Kath & Kim)New Series 2 (Gigantic)New Series 3 (Norman Lear)New Series 4 (TBD)TBD SCRIPTED SERIES 1 (Serial Frank)TBD SCRIPTED SERIES 2TBD SCRIPTED SERIES 3TBD SCRIPTED SERIES 4 --------->>>TBD SCRIPTED SERIES 5 --------->>>

MSN DEAL/TBD DIGITAL 1ST LOOKMSN DEAL/TBD DIGITAL 1ST LOOK

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Note: Number of pilots not yet provided by Reveille, pilot numbers abovehave been derived based on SPT preliminary assumptions for revenue / pilot