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Privileged and Confidential

3D: FACTS AND FIGURES FOR THEATRICAL

RELEASES

2

3D Theatrical Distribution in the U.S.

• Average MPAA U.S. ticket price: $7.50 (2009)

• Average ticket price premium for non-IMAX 3D

• Today: $3.50

• Projected: $2.50

• Average ticket price for IMAX 3D: $14.58 (roughly a $7 premium) (2009)*

• Studio share of ticket price premium is 45-55%; however, studio pays $0.40 - $0.55 per ticket for glasses

• Theaters pay partial cost of glasses, actual manufacturing costs are $0.50-$0.75 (although recycling programs bringing costs down)

• Theaters also pay RealD $0.50 per admission

Asian Market Data Points

• There are currently about 1,600 Digital 3D screen in Asia, about 350 in Japan

• Until recently, the Asian 3D market was controlled by XpanD (90% share); they require special glasses - Active Polarized - that cost $50.00 to $75.00 each, are battery operated, and reused regularly

• This past year, prior to the release of AVATAR, RealD expanded rapidly through Asia (mostly China), and by the release of AVATAR, they had a 40% share of the market

Motion Picture Group3D Facts & Figures

* Per IMAX

3

3D Production / Conversion Costs

• Incremental cost to shoot/convert a film into 3D

• Cloudy with a Chance of Meatballs: ~$5M (converted in post production)

• Smurfs: ~$12M (will be converted in post production)

• Resident Evil: Afterlife: ~$10M (shot in 3D)

• Other upcoming SPE 3D titles include: Spider-Man, Tintin, Priest, Arthur Christmas and Hotel Transylvania

Motion Picture Group3D Facts & Figures (Continued)

* Per IMAX

4

21 – 27% BO Increase

• Based on conversion of a 2D film that would have done $200M WWBO into 3D

• Using avg. global 2D ticket price of $7.22 (uplift analysis used average WW projected price rather than 2009 MPAA average) and avg. global 3D premium of $2.50 (used lower forecast figure rather than current $3.50 premium)

• $200M WWBO / $7.22 = 27.7M admissions

• If 60% of tickets are converted to 3D, that would be 16.6M tickets sold at a premium x $2.50 3D premium = $41.6M additional WWBO (21% incr.)

• If 80% of tickets are converted to 3D, that would be 22.2M tickets sold at a premium x $2.50 3D premium = $55.4M additional WWBO (27% incr.)

13-17% Studio Revenue Net of Glasses Cost Increase

• Assumes blended global studio share of 50% of box office

• Studio share of $200M 2D box office would be $100M

• 60% 3D tickets: Share of increased BO net of glasses cost is $12.9M/13% incr.

• $41.6M WWBO x 50% = $20.8M additional revenue - 16.6M 3D admissions x $0.475* per pair of glasses ($7.9M) = $12.9M

• 80% 3D tickets: Share of increased BO net of glasses cost is $17.2M/17% incr.

• $55.4M WWBO x 50% = $27.7M additional revenue – 22.2M 3D admissions x $0.475* per pair of glasses ($10.5M) = $17.2M

Motion Picture GroupMethodology for 3D Uplift Example

* Projected global average

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Motion Picture GroupCalculations for 3D Uplift Example

60% 3D 80% 3DRevenue Increases

2D Box Office ($M) 200.0$ 200.0$

Avg. 2D Ticket Price ($) $7.22 $7.22 Projected Avg. WW Ticket PriceAvg. 3D Ticket Premium ($) $2.50 $2.50 Projected Avg. WW 3D PremiumAvg. 3D Ticket Price ($) $9.72

Total Admissions (M) 27.7 27.7

% from 3D 60% 80%3D Admissions (M) 16.6 22.2

BO Uptick from Higher Ticket Price ($M) 41.6$ 55.4$

3D Box Office ($M) 241.6$ 255.4$ 3D Uptick (%) 20.8% 27.7%

Retention Rate 50.0% 50.0% Global Avg. for $200M+ grossing title

Rental Uptick fromHigher Ticket Price ($M) 20.8$ 27.7$

Glasses Cost3D Glasses Cost per unit ($) -$0.48 -$0.48 Projected Avg. WW glasses cost

Total 3D Glasses Cost ($M) (7.9)$ (10.5)$

Net Impact2D Theatrical Revenue ($M) 100.0$ 100.0$

3D Rental Uptick ($M) 20.8$ 27.7$ Total 3D Glasses Cost ($M) (7.9)$ (10.5)$ Net Theat. Rev. Incr. ($M) 12.9$ 17.2$

3D Theatrical Revenue ($M)(net of glasses cost) 112.9$ 117.2$ 3D Uptick (%) 13% 17%

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Assuming 60-80% of box office from 3D and reasonable level of performance:

• Box office increases 21-27% based on higher ticket price*, before accounting for potential audience growth

• Studio theatrical revenue (net of glasses cost) is increased 13-17%**

• The net revenue uplift is generally greater than the $5-12M increase in production cost to shoot/convert the film to 3D

Motion PicturesPotential Gains from 3D Releases

Domestic Box Office of Recent 3D Releases

*Assumes long-term avg. ticket price premium of $2.50 (today’s average is $3.50). Excludes IMAX 3D, which has greater ticket price premiums.** Assumes 50% studio share of global box office and $0.40-$0.55 per ticket cost of glasses.

Recent 3D releases have seen significant share of box office from 3D ticket sales, driving higher revenue

DBO (to date) $113M $115M $721M

Potential Uplift from 3D Release

63%70%

82%

37%30%

18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cloudy with aChance ofMeatballs

Alice inWonderland

Avatar

3D Box Office 2D Box Office

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Privileged and Confidential

DIGITAL CINEMA ROLL-OUT

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Motion Pictures Digital Cinema

Rollout Update

• 23,100 digital screens estimated to be installed worldwide by the end of 2010 with 32,900 projected by 2011o Today, there are over 8,000 digital screens in North America and

17,000 screens worldwide

• Easier access to capital has allowed deployment entities to gain financing for the installation of the digital screens o In North America, DCIP has received financing and will begin

rollout with AMC, Regal and Cinemark (comprises > 50% of the market)

• Digital 3D is now the standard with 16 3D feature releases from Hollywood slated for next year (SPE will be releasing Kenny Chesney Summer in 3D in April 2010, Resident Evil: Afterlife in September 2010 and Priest in January 2011)o Today, there are approx. 3,500 digital 3D screens in North

America and 8,300 digital 3D screens worldwide

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Motion Pictures Digital Cinema

In Order to Roll-out 3D, Exhibitors Must . . .

• [Scott Sherr is creating summary of what upgrades to screens and projectors are required]

Virtual Print Fees• If analysts ask about level of VPFs, it is appropriate to say that these

terms are kept confidential• Fees are both competitively sensitive (if we disclose, it’s more

difficult to drive them down in certain negotiations) and technically a breach of our agreements if we disclose

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3D exhibition of feature films has successfully driven recent box office performance worldwide

“[3D has]…moved out of its adolescence to just be now a part of the cinematic art, used by serious filmmakers…I’m going to make all my movies in 3D, no matter the subject” – James Cameron, December 21. 2009

Studios have already had various successful titles and are aggressively planning for 3D releases of future titles

“[Alice in Wonderland’s]…3D component boosted the overall performance in a big way. [Alice]… begins an onslaught of 3D product entering the market in the coming months, with Paramount’s toon How to Train Your Dragon set to launch March 26, followed by Warner Bros.’ Clash of the Titans on April 2.” – Daily Variety, March 8, 2010

With the continued rollout of digital screens and growth in 3D screens, domestic exhibitors have embraced this new product and are actively looking to be able to carry at least two simultaneous 3D releases by 2011

As Sony considers various 3D release opportunities, several financial considerations must be examined

% of gross box office from 3D

3D ticket upcharge

Cost of 3D eyewear

Digital production and/or conversion costs

Reduced distribution expenses

Executive Summary

Current Digital 3D LandscapeComplexes

3+ Screens at a Complex

30%

17%

620

344

2 Screens Only at a Complex

54%1,1141 Screen Only at a Complex

%Locations

42%1,004

42%1,004

16%383

%Locations

100%2,079TOTAL 100%2,391

3,522TOTAL 3D Screens 5,905

Digital 3D Projection

As of Janaury 2010 December 2010# of Digital 3D Screens at a Complex

North America Digital 3D Overview

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Case Study: Alice in Wonderland

Domestic Box Office Performance Breakdown (through 3/8/2010)

Domestic Box Office Opening Weekend

$115,243,654 Gross Domestic Box as of 3/8/10

$12.2

$115.2

$68.7

$34.3

$0.0

$25.0

$50.0

$75.0

$100.0

$125.0

$150.0

Total 3D and IMAX 2D

$ in

MM

70%

30%

3D IMAX

Digital 3D

Note: 3D and IMAX have totaled $80.9M total domestic box office.

$80.9

Released Fri., Mar. 5, 2010Total Locations 3,728Estimated 3-D Locations 2,063Estimated IMAX Locations 1882-D Weekend Gross $34,335,0313-D Weekend Gross $68,735,943IMAX Gross $12,172,680

Total Weekend Gross $115,243,654

Non-IMAX 3-D Only as Percentage of Total Gross

60%

3-D and IMAX as Percentage of Total Gross

70%

Estimated IMAX Gross per Location

$64,748

Estimated 3-D Gross per Location $33,318

Estimated 2-D Gross per Location $20,622

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page 12

Case Study: Avatar

Domestic Box Office Performance Breakdown (through 3/8/2010)

Domestic Box Office Opening Weekend

$720,607,444 Gross Domestic Box as of 3/8/10

$127.1

$720.6 $462.9

$130.6

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

Total 3D and IMAX 2D

$ in

MM

82%

18%

3D IMAX

Digital 3D

Note: 3D and IMAX have totaled $590.0M total domestic box office.

$590.0

Released Fri., Dec.18, 2009Total Locations 3,452Estimated 3-D Locations 2,023Estimated IMAX Locations 1782-D Weekend Gross $21,362,4363-D Weekend Gross $44,357,253IMAX Gross $9,495,072

Total Weekend Gross $75,214,761

Non-IMAX 3-D Only as Percentage of Total Gross

59%

3-D and IMAX as Percentage of Total Gross

72%

Estimated IMAX Gross per Location

$53,343

Estimated 3-D Gross per Location $21,926

Estimated 2-D Gross per Location $14,949

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Case Study: Cloudy with a Chance of Meatballs

Domestic Box Office Performance Breakdown (through 12/11/2009)

Domestic Box Office Opening Weekend

$113,076,648 Gross Domestic Box as of 12/11/09

$8.9

$113.1

$62.0

$42.2

$0.0

$25.0

$50.0

$75.0

$100.0

$125.0

Total 3D and IMAX 2D

$ in

MM

63%

37%

3D IMAX

Digital 3D

Note: 3D and IMAX have totaled $70.9M total domestic box office.

$70.9

Released Fri., Sep. 18, 2009Total Locations 3,119Estimated 3-D Locations 1,675Estimated IMAX Locations 982-D Weekend Gross $9,474,2393-D Weekend Gross $17,860,323IMAX Gross $2,348,850

Total Weekend Gross $29,683,412

Non-IMAX 3-D Only as Percentage of Total Gross

60%

3-D and IMAX as Percentage of Total Gross

68%

Estimated IMAX Gross per Location

$23,968

Estimated 3-D Gross per Location $10,663

Estimated 2-D Gross per Location $6,561

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Worldwide Digital Screen Footprint

5,5727,772 8,056

13,000

21,000

7911,122

4,612 4,816

5,500

6,000

817

1,082

3,2233,429

4,000

5,000

600

900

1,780

4,603

468

12

33

457

0

5,000

10,000

15,000

20,000

25,000

30,000

2006A 2007A 2008A 2009A 2010YTD 2010E 2011E

LatinAmericaandCaribbean

AsiaPacific

Europe,MiddleEast,Africa

NorthAmerica

32,900

23,100

16,76916,064

7,809

6,223

1,940

Projected Digital Screen Rollout as of January 2010

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3342

6000

93002511

5100

7900

994

2500

3700

337

500

700

-

5,000

10,000

15,000

20,000

25,000

2009 2010 E 2011 E

USA/Canada EMEA Asia/Pacific Latin America

Worldwide 3D Screen Projections as of January 2010

7,184

21,600

14,100

Source: Vendor-based footprint data; SPR/SPRI projections.

Worldwide 3-D screens will continue to grow over the next few years

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page 16

Digital 3-D is being actively developed by vendors for the global marketplace

Real D is the leading digital 3-D vendor in the marketplace today

Disposable glasses

Footprint as of January 2010*Vendors

Worldwide:2,841 Sites 4,688 Screens

DIS

PO

SA

BL

E G

LA

SS

ES

RE

US

AB

LE

GL

AS

SE

S

Master Image is a Korean developer of 3-D technology for the theater

Disposable glasses

Worldwide:563 Sites 608 Screens

Uses color spectrum technology Reusable glasses

Worldwide:1,403 Sites 1,915 Screens

Uses battery powered glasses that manages each eye separately

Reusable glasses

Worldwide :856 Sites 1,176 Screens

Sony 4K is now actively promoting digital 3D in conjunction with Real D in North America and Europe

* Source: Vendor-based footprint data and projections as of January 2010.

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Privileged and Confidential

NETWORK GROWTH AREAS

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Networks – Growth Opportunities(Per MRP with Addition of 3D Network)

• 3D Network in US with Discovery and IMAX

• Animax/AXN – full penetration in Korea

• India sports channel

• TV1-Hallmark – Australia swap

• SET HD – US

• SET Max – Italy channel

• GXT – Italy channel

• Tamil channel

• MGM channels

• Cine Latino – US/Latin Spanish language movie channel