Enabling the Exploitation of TV over the Internet

June 2011June 2011

© 2010 PeerTV

The next TV revolutionThe next TV revolution

The Internet is poised to become a major delivery platform for multi-channel TV

Internet TV represents the highest growth segment in terms of Internet bandwidth use*

Internet TV will fundamentally change the way video and TV is delivered and consumed

Smaller content and network providers are proliferating, with innovative business models and product offerings

PeerTV is at the heart of this revolution

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*Source: Cisco

Internet TV allows multi-channel content to be streamed to a geographically dispersed audience

Millions of people want tailored TV services:

- people who live outside their country of birth

- religious communities

- other special interest groups There are over 260 million first and second generation immigrants in

Europe and North America

PeerTV’s technology enables a new breed of content providers to serve this market with a cross-border multi-channel TV service

PeerTV provides a solution which is:- quick and simple to implement- easy to use- cost effective- consistently a high quality viewing experience

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The Market OpportunityThe Market Opportunity

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PeerTVPeerTV

A profitable and fast growing B-2-B technology business Enables multi-channel TV businesses to be set up at a fraction of the

traditional cost Offers robust, proprietary end-to-end systems which work around the world Over 100,000 households watch TV over PeerTV systems today

MX Widget-basedApplication technology and PeerStation control

MX Widget-basedApplication technology and PeerStation control

MX Software Application Content, Subscriber &

Application Management

MX Software Application Content, Subscriber &

Application Management

Service HUB Internet(OTT)

PeerStationPeerStation

Service activation, software updates

controlled remotely by PeerTV Global

Service activation, software updates

controlled remotely by PeerTV Global

PeerTV’ Products & Solution Overview

Live / VoD Servers

Tr-69-based Upgrade & Remote Maintenance Server

CDNs

MX Gateway

Home Media (PC access via home network)

Home

Service Center

The MX Widget-basedUI Engine

CMS (Content &Subscribers

Management)

Internet

PeerStation STB

(Video Content Delivery Networks)

(eco-system partners)

PeerCenter – pre-Packaged Solution

PeerTV Solution OverviewPeerTV Solution Overview

An advanced STB providing solid and cost effective foundation for Internet /Broadband-based TV, capable of running powerful user interface platforms such as PeerTV’s MX Engine (demonstrated in the attached screen shots)

PeerTV STB Overview

Live TV Services

VoD Service

PeerStation

MX 3.0 widget based UI EngineMX 3.0 widget based UI Engine

DVB-T Channels+ PVR

Web MediaInternet VoD(‘TV’ Sites)

PC Content(Streamer)

DVB-T Channels+ PVR

MX3 Middleware Components

Client

Server

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Categorized Channel List

for quick selection

Full EPG Support

Subscription packages of

groups of channels

Parental Control

Search (key words, tags)

and Recommendation

engine.

Channel Selection Widget

Categorized Channel List, Preview Window

Categorized Channel List, Preview Window

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The leader in Narrowcasting

over the

Internet

Categorized lists

managed easily via an

integrated CMS, Wallet-

based Pay TV models

and parental Control

Search (key words, tags)

and Recommendation

engine.

Title Selection Widget

Modern, DVD-cover based navigationModern, DVD-cover based navigation

(* OTT – Over the Top)(* OTT – Over the Top)

Ethnic Channels

Religious Channels Educational TV Enterprise TV Video Libraries ISP looking for new services Telco’s either migrating from IPTV to Internet TV or implmenting directly Internet TV due to regulation issues There are over 260 million first and second generation immigrants in

Europe and North America

Cable Operators moving to IP

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The Market SegmentsThe Market Segments

Kartina TV: Live Russian TV service to Russians around the world.

Goldline:Farsi, Kurdish and Afghan TV service around the world

Bradbury: A “Netflix” - like service in Russia delivered to Ross Telecom

IMB: Russian, Polish and Ukrainian TV service in Canada .

Ethnic Channels : Selection of Ethnic Channels in Canada

Watch India: Indian languages TV service around the world

Fibernet: Serbian Channels targeting Europe and the US

Moymir: Live Russian TV based in Czech Republic

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Selected Customers of PeerTVSelected Customers of PeerTV

Normaplus : An Ukrainian Live TV targeting US,Canada & Europe

Megaimpulse: Russian Live TV and Vod service based in Munich

Shoof TV: Arab TV and movies for the Arabs in Israel.

PCBX: Vietnamse Live TV in France

Comcare: Live and VoD Service in Kenya on JTL network

Horizon Media: Catholic African Channels in Switzerland and France

Vocalnet: Israeli TV in Romania

Aurora: Distribution of Holywood Content online to replace current method using DVd’s

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Selected Customers of PeerTVSelected Customers of PeerTV

UnoRed : Catholic Hispanic Channels targeting the Hispanic Community

in the US and Canada

Joy broadband : Religious Content in the US

Maxicom: IPTV service provider in Mexico migrating to Internet TV

MCom: Ukrainian and Russian service planing to compete with Kartina in Europe

Metrotel: Network Provider in Argentina planning to collaborate with DLA and offer an Internet Service

Novo Tempo: Religious Service in Brasil

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New Potential Customers of PeerTVNew Potential Customers of PeerTV

The business: Narrowcasting live Russian TV channels targeting many millions of Russian ex-pats in Europe, North America and Israel

Problem: Satellite not a viable option - too expensive and high risk

Solution: Streaming over 120 channels over the internet from base stations in Frankfurt , New York LA and Tel Aviv.

PeerTV’s contribution: Delivering basic software to apply middleware and a stable affordable internet terminal device

Success story: Currently 65,000 subscribers mainly in Europe and US, adding around 4,000 - 5,000 subscribers per month.

Potential 2011: 70k-80k units

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The business: Narrowcasting Farsi,Kurdish and Afgan TV around the world from headend in Canada. Adding about 100 new Arab channels

Problem: Wanted a low bit rate solution around 800-900 k

Solution: Streaming tens of Live Channels and VOD using WM9 based on a deep and tight integration with the Peerstation.

PeerTV’s contribution: Delivering advanced software to apply middleware and a stable affordable internet terminal device for live and progressive download integrated with Zixi CDN

Success story: Have grown significantly fast from 1k to 8k subscribers

Potential 2011: 20-30k.

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GLWIZ –GROUP OF GOLDLINE

The business: Bradbury owns a large library of Premium Studios Content dubbed in Russian and in addition local Russian Content

Target: Enable ISP’s and Telco’s which are deadlocked with IPTV a new revenue path

Solution: Streaming VOD and over 100 Live channels initially in the large Moscow metropolis using H264

PeerTV’s contribution: MX3 middleware customized to russina and the new PS-540 integrated with Verimatrix DRM and Bradbury’s CDN.

Pilot: We are currently in the process of supplying the pilot of 2500 units

Potential 2011: 30-50k units

Potential 2012-: 100k units

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Bradbury- Russia

The business: Broadcasting over the Internet primarily Ukrainian and some Russian and Polish content in Canada

Solution: Streaming over 40 channels in WM9 at 800-900k over the internet from their own Headend in Toronto.Plan to migrate to H264 and add new channel packages

PeerTV’s contribution: Delivering the adequate software to apply middleware and a stable affordable internet terminal device

Success story: Currently 8,000 subscribers mainly in Europe and US, adding around 750 subscribers per month.

Potential 2011: 6k units

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IMB TV

The business: Narrowcasting Indian live TV channels and Bollywood VOD targeting many millions of Indian ex-pats around the world

Problem: WatchIndia’s business had reached the limits of growth based on a PC platform. Its subscribers wanted a TV-based service

Peer TV’s solution: Creating an end-to-end system:

– Subscriber PeerStations delivering over 70 live Indian TV channels and over 10,000 Bollywood movies on demand, local Freeview channels streaming from domestic PC and proprietary GUI

– Head-end system including Conditional Access , Content Management, Electronic Programming Guide, Subscriber Management System

– Integration with streaming technology, Content Delivery Network and Digital Rights Management systems

Installed Subscribers: will reach 5k in a month

Potential 2011: 20k units

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The business: Broadcasting a variety of Ethnic Channels including Arabic ,Greek ,Indian Israeli,Portuguese,Russian and Vietnamese to Canada and US

System: Streaming various Ethnic Live Channels from HeadEnd in Toronto employing WM9 at about 900k – 1M.

PeerTV’s contribution: Delivering basic software to integrate middleware and a stable affordable internet terminal device

Success story: Currently 7K subs

Potential 2011: 3-5 K

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Ethnic Channels- Canada Telecom

The business: Automating the secure distribution of content for the Hollywood film and TV industry

Problem: All the process of voting and the production of films in the movie industry is done today by exchanging and sending DVD’s with couriers around the world. This is inefficient and insecure; piracy of pre-release films is significant

Solution: Use the internet to stream the data to all the parties involved with unique encryption technologies

PeerTV’s contribution: Providing a PeerStation 540 to each production site or voting member of the MPA, integrated with MX Middleware enabling bi-directional encrypted exchange of content

Potential: Over 300,000 users

Pilot project: In initial phase

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The business: IPTV Service Provider migrating to Internet TV and targeting Ukrainian and Russian residents in the US & Canada

Solution: Streaming over 80 Live Channels and VOD in H264 at 2 Mbit/s over the internet from their own headend in Odessa.

PeerTV’s contribution: Supplying MX3 middleware and the PS-340 fully integrated with Harmonic Encoders and Edgeware Video Servers

Basic Charge : 10-15 U$

Status: Pilot deploying 300 subs in place

Potential 2011: 30k-50k units

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Normaplus

The business: Broadcasting Hispanic Catholic Content to Hispanic residents living in the US and Canada

Problem: PC business had reached the limits of growth.Its subscribers wanted a TV-based service

Peer TV’s Ofering:

– Subscriber PeerStations delivering over Live Channels and a VOD library

– Integration with streaming technology, Content Delivery Network and Digital Rights Management systems

Status: Pilot with 50 STb’s and integrated with Talking Web middleware being carried out

Potential 2011: Has placed a Letter of Intent for 40k units

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UnoRed

A base charge per software licence for the MX Application Server:– setup typically $25k incl. 500 licenses (can be amended on case by case basis)– additional licences start at $6 per PeerStation

One-time charge per PeerStation terminal:– typically $105– or lower sales price per PeerStation terminal and a revenue share

Software and licence fee per subscriber

Annual hardware and software maintenance fee

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Revenue GenerationRevenue Generation

Proven track record in building successful media, high-tech and retail businesses and delivering excellent shareholder returns

Previous listed company experience

Extensive business management skills and in running businesses which operate globally

UK-based Non Executive Directors on Admission including former CEO of Pace Micro Technology

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High Calibre TeamHigh Calibre Team

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SummarySummary

The market for Internet TV is growing rapidly and is giving rise to substantial opportunities for new content providers

PeerTV positioned as a leading provider of Internet TV solutions which are both robust and cost competitive

Meets the needs of the fast-growing narrowcasting niche content

Growing and profitable company

Strong management team with extensive industry experience

One of the first tested and implemented Internet TV solutions now servicing 100,000 subscribers world-wide