Roadshow

Mark CubanMark Cuban

Chairman/PresidentChairman/President

broadcast.combroadcast.com

The Leading Internet The Leading Internet Portal and Destination forPortal and Destination for

Video and Audio Broadcasts forVideo and Audio Broadcasts forConsumers and BusinessesConsumers and Businesses


Changing the RulesChanging the Rules

Investment HighlightsInvestment Highlights

Huge Opportunity in MultipleHuge Opportunity in MultipleLarge MarketsLarge Markets

First Mover AdvantageFirst Mover Advantage

Significant Barriers to EntrySignificant Barriers to Entry

Leverageable Business ModelLeverageable Business Model

Execution of Business PlanExecution of Business Plan

Two Large MarketsTwo Large Markets

$105 Billion$105 Billion

Home VideoHome Video

$16$16

NetworkNetworkTelevisionTelevision

$37$37

RadioRadio

$13$13

DBSDBS

$4$4

CableCableTelevisionTelevision

$35$35

Consumer MediaConsumer Media

Source: Veronis, Suhler & Associates and ITCA Source: Veronis, Suhler & Associates and ITCA

$30 Billion$30 Billion

Video /Video /TeleconferenceTeleconference

$6.4$6.4

TrainingTraining

$15.5$15.5

TradeTradeShowsShows

$7.7$7.7

Business ServicesBusiness Services

The Next Mass MediumThe Next Mass Medium

Source: IDCSource: IDC

WWW UsersWWW Users(Millions)(Millions)

0

160

320

'97 '98 '99 '00 '01 '02

36% CAGR36% CAGR

Yesterday’s Yesterday’s Text-Based SolutionText-Based Solution

Internet-AttachedInternet-AttachedDeviceDevice

Millions of Millions of Text-Based Web SitesText-Based Web Sites

Yesterday’s Yesterday’s Text-Based SolutionText-Based Solution

PortalsPortals

Yahoo!Yahoo!

AOLAOL


Millions of Millions of Text-Based Web SitesText-Based Web Sites


Today’s Today’s Multimedia SolutionMultimedia Solution

Live Broadcasts andLive Broadcasts andArchived Video / AudioArchived Video / Audio

ProgrammingProgramming


Today’s Today’s Multimedia SolutionMultimedia Solution

Live Broadcasts andLive Broadcasts andArchived Video / AudioArchived Video / Audio

ProgrammingProgrammingPortal/DestinationPortal/Destination

The broadcast.comThe broadcast.comAdvantageAdvantage

ContentContentAggregationAggregation

NetworkNetworkInfrastructureInfrastructure

DistributionDistributionPartnershipsPartnerships

First MoverFirst Mover

StrategyStrategyExisting ContentExisting Content

EstablishedEstablishedDemandDemand

Focus on RightsFocus on Rights

StrategyStrategyExisting ContentExisting Content

EstablishedEstablishedDemandDemand

Focus on RightsFocus on Rights

Leading Content Leading Content AggregatorAggregator

AudioBooks

Business

CD Jukebox

Education

Entertainment

Live Radio

Live TV

Music

News

Public Affairs

Special Interest

Spiritual

Sports

Technology

Shopping

Video

Auction

CHANNELS

385+ Radio 385+ Radio StationsStations

40 TV / Cable40 TV / CableNetworksNetworks



420+ College 420+ College and Professional and Professional TeamsTeams

19,500+ 19,500+ Live EventsLive Events



Daily Live Broadcasts Daily Live Broadcasts and 65,000 Hours of and 65,000 Hours of On-Demand Audio and On-Demand Audio and Video ProgrammingVideo Programming

Leading Content Leading Content AggregatorAggregator

AudioBooks

Business

CD Jukebox

Education

Entertainment

Live Radio

Live TV

Music

News

Public Affairs

Special Interest

Spiritual

Sports

Technology

Shopping

Video

Auction

CHANNELS









2,600+ Business 2,600+ Business EventsEvents

EarningsEarningsCalls, Keynotes Calls, Keynotes

2,600+ Business 2,600+ Business EventsEvents

EarningsEarningsCalls, Keynotes Calls, Keynotes

2,400+ Full-2,400+ Full-Length CDsLength CDs

350 Live350 LiveConcertsConcerts

2,400+ Full-2,400+ Full-Length CDsLength CDs

350 Live350 LiveConcertsConcerts

Leading Content Leading Content AggregatorAggregatorDaily Live Broadcasts Daily Live Broadcasts and 65,000 Hours of and 65,000 Hours of On-Demand Audio and On-Demand Audio and Video ProgrammingVideo Programming

5,000+ hours on-5,000+ hours on-demand videodemand video

56-300 kbps56-300 kbps 120,000+ 120,000+

registered users registered users

5,000+ hours on-5,000+ hours on-demand videodemand video

56-300 kbps56-300 kbps 120,000+ 120,000+

registered users registered users

AudioBooks

Business

CD Jukebox

Education

Entertainment

Live Radio

Live TV

Music

News

Public Affairs

Special Interest

Spiritual

Sports

Technology

Shopping

Video

Auction

CHANNELS

UnparalleledUnparalleledContent PartnershipsContent Partnerships

A.H. Belo Corporation A.H. Belo Corporation

BBC World ServiceBBC World Service

Capitol RecordsCapitol Records

Capstar / SFX CommunicationsCapstar / SFX Communications

Clear Channel CommunicationsClear Channel Communications

Granite BroadcastingGranite Broadcasting

Host CommunicationsHost Communications

Learfield CommunicationsLearfield Communications

Major League BaseballMajor League Baseball

National Hockey LeagueNational Hockey League

Trimark PicturesTrimark Pictures

Turner Broadcasting: CNN/TCM/WCWTurner Broadcasting: CNN/TCM/WCW

150 Division IA Schools150 Division IA Schools

Partner BenefitsPartner BenefitsPartner BenefitsPartner Benefits

Access to In-OfficeAccess to In-OfficeAudienceAudience

Interactive PlatformInteractive PlatformAudience DemographicsAudience Demographics

Partner BenefitsPartner BenefitsPartner BenefitsPartner Benefits

Access to In-OfficeAccess to In-OfficeAudienceAudience

Interactive PlatformInteractive PlatformAudience DemographicsAudience Demographics

UnparalleledUnparalleledContent PartnershipsContent Partnerships

ExclusiveExclusive

A.H. Belo CorporationA.H. Belo Corporation

BBC World ServiceBBC World Service

Capitol RecordsCapitol Records

Capstar / SFX CommunicationsCapstar / SFX Communications

Clear Channel CommunicationsClear Channel Communications

Granite BroadcastingGranite Broadcasting

Host CommunicationsHost Communications

Learfield CommunicationsLearfield Communications

Major League BaseballMajor League Baseball

National Hockey LeagueNational Hockey League

Trimark PicturesTrimark Pictures

150 Division IA Schools150 Division IA Schools

Turner Broadcasting: CNN/TCM/WCW Turner Broadcasting: CNN/TCM/WCW Turner Broadcasting: CNN/TCM/WCW Turner Broadcasting: CNN/TCM/WCW

Leading Network Leading Network InfrastructureInfrastructure

Satellite FeedSatellite Feed

Video FeedVideo Feed

Audio FeedAudio Feed

AnalogAnalogDigitalDigital

Private Frame RelayPrivate Frame RelayNetworkNetwork

Content InContent In










22 Satellite 22 Satellite Receiving DishesReceiving Dishes

1,000+ Multimedia 1,000+ Multimedia Streaming ServersStreaming Servers

Support for 650 Support for 650 Simultaneous Live EventsSimultaneous Live Events

Real-Time QualityReal-Time QualityControl / SupportControl / Support


Spr

int

Spr

int

MC

IM

CI

GTE

UU

Net

UU

Net

UNICAST

UNICAST

AT&

T

MULTICAST

MULTICAST

Content OutContent Out








Large-Scale Large-Scale CommercialCommercialMulticast NetworkMulticast NetworkAccess to Over Access to Over

470,000 Dial-Up470,000 Dial-UpMulticast PortsMulticast Ports

Multiple 45 MbpsMultiple 45 Mbpsand 155 Mbpsand 155 MbpsConnectionsConnections(Multi-Homed)(Multi-Homed)

Leading DistributionLeading DistributionPartnershipsPartnerships

Exclusive MenuExclusive Menu

PlacementPlacementMSN Web EventsMSN Web Events

Content PartnerContent Partner

Access to Nasdaq 100Access to Nasdaq 100broadcast.com japan

Co-BrandedLinks

800K+ Unique 800K+ Unique Users / DayUsers / Day

Ranked #17 of all Ranked #17 of all sites on the Internetsites on the Internet

Ability to Reach Ability to Reach Office UsersOffice Users

High Traffic /High Traffic /Large AudienceLarge AudienceHigh Traffic /High Traffic /Large AudienceLarge Audience

TechnologyTechnologyIndependenceIndependenceTechnologyTechnologyIndependenceIndependence

Barrier to EntryBarrier to EntryBarrier to EntryBarrier to Entry

The broadcast.comThe broadcast.comAdvantageAdvantage

* Media Metrix, January 1999* Media Metrix, January 1999

ContentContentAggregationAggregation

NetworkNetworkInfrastructureInfrastructure

DistributionDistributionPartnershipsPartnerships


Business ServicesBusiness Services

AdvertisingAdvertising


Customized to Customized to Specific NeedsSpecific NeedsCustomized to Customized to Specific NeedsSpecific Needs

TurnkeyTurnkeyBusiness ServicesBusiness Services

Public RelationsPublic RelationsCorporate CommunicationsCorporate Communications Investor RelationsInvestor RelationsStockholders’ MeetingsStockholders’ MeetingsTrade Shows / SeminarsTrade Shows / SeminarsProduct LaunchesProduct LaunchesSales PresentationsSales PresentationsTraining / Distance LearningTraining / Distance Learning

Cost-Effective Internet / Intranet BroadcastsCost-Effective Internet / Intranet Broadcasts

End-to-End: Capture, End-to-End: Capture, Feed, DistributeFeed, DistributeEnd-to-End: Capture, End-to-End: Capture, Feed, DistributeFeed, Distribute

Restricted or Restricted or Open AccessOpen AccessRestricted or Restricted or Open AccessOpen Access

Interactive SolutionsInteractive SolutionsInteractive SolutionsInteractive Solutions

broadcast.com Can Reach More In-Office broadcast.com Can Reach More In-Office Users than Traditional MediaUsers than Traditional Media

PCs in OfficesPCs in OfficesPCs in OfficesPCs in Offices

99% have PCs on desktops99% have PCs on desktops 9% have televisions9% have televisions 32% have radios32% have radios

Audio and Video Usage Audio and Video Usage Audio and Video Usage Audio and Video Usage

71% have listened to audio or 71% have listened to audio or watched video at work on PCwatched video at work on PC

54% connected on T1 lines or faster54% connected on T1 lines or faster

Source: Delahaye Group Workstation Media Usage Survey, Oct. 98Source: Delahaye Group Workstation Media Usage Survey, Oct. 98

High Profile BroadcastsHigh Profile Broadcasts

SportsSportsSportsSports

Super Bowl XXX - XXXIIISuper Bowl XXX - XXXIII World Series ‘96-‘98World Series ‘96-‘98 NCAA Final Four ‘96-‘98NCAA Final Four ‘96-‘98 NHL Season & Stanley CupNHL Season & Stanley Cup

Victoria’s Secret Fashion ShowVictoria’s Secret Fashion Show Casablanca Casablanca Paul McCartney Internet-only Paul McCartney Internet-only

WebcastWebcast World ChampionshipWorld Championship

WrestlingWrestling

Entertainment / MusicEntertainment / MusicEntertainment / MusicEntertainment / Music


News EventsNews EventsNews EventsNews Events

Clinton Grand Jury Clinton Grand Jury Testimony VideoTestimony Video

John Glenn’s Historic John Glenn’s Historic Return into SpaceReturn into Space

NY Yankees Ticker Tape NY Yankees Ticker Tape Victory ParadeVictory Parade

College Bowl Games ‘95-’99College Bowl Games ‘95-’99 The Masters/U.S. Open GolfThe Masters/U.S. Open Golf ‘‘98 Winter Olympics98 Winter Olympics World Championship BoxingWorld Championship Boxing

600+ Business Services600+ Business ServicesCustomersCustomers

Events Broadcast from 9 CountriesEvents Broadcast from 9 Countries


More High-Profile Events Than More High-Profile Events Than Rest of Internet CombinedRest of Internet Combined

More High-Profile Events Than More High-Profile Events Than Rest of Internet CombinedRest of Internet Combined

ExperienceExperience

PositionPosition

GrowthGrowthEngineEngine

Business ServicesBusiness ServicesLeadershipLeadership

2,600+ Business 2,600+ Business Services Live EventsServices Live Events

2,600+ Business 2,600+ Business Services Live EventsServices Live Events

First MoverFirst MoverFirst MoverFirst Mover

Dominant Market ShareDominant Market ShareDominant Market ShareDominant Market Share

Largest Dedicated Sales Force Largest Dedicated Sales Force 85 and growing85 and growing

Largest Dedicated Sales Force Largest Dedicated Sales Force 85 and growing85 and growing


Execution of PlanExecution of PlanExecution of PlanExecution of Plan

Interactive MultimediaInteractive MultimediaAdvertisingAdvertising

SponsorshipsSponsorshipsSponsorshipsSponsorships

Audio & Video Gateway AdsAudio & Video Gateway AdsAudio & Video Gateway AdsAudio & Video Gateway Ads

Guaranteed Click-Thru’sGuaranteed Click-Thru’sGuaranteed Click-Thru’sGuaranteed Click-Thru’s


Interactive Multimedia Interactive Multimedia Advertising - Next WaveAdvertising - Next Wave

Audio & VideoAudio & Video

BillboardsBillboards

Scrolling TextScrolling Text

BannersBanners

SponsorsSponsors

Audio & VideoAudio & Video

BillboardsBillboards

Scrolling TextScrolling Text

BannersBanners

SponsorsSponsors

Player as BrowserPlayer as BrowserPlayer as BrowserPlayer as Browser


TraditionalTraditionalMedia AdvertisingMedia Advertising

On-Air Radio and TV Ad InventoryOn-Air Radio and TV Ad Inventory– 4,800+ spots / week4,800+ spots / week

Resold to Traditional AdvertisersResold to Traditional Advertisers– Stand-alone or bundled with Stand-alone or bundled with

Web adsWeb ads

Adding TV stations ahead of planAdding TV stations ahead of plan– 40 stations by end of Q4 199840 stations by end of Q4 1998

TV stations paying cashTV stations paying cash


Revenue OpportunitiesRevenue Opportunities

broadcast.combroadcast.combroadcast.combroadcast.com

Commercials within ProgrammingCommercials within ProgrammingPay-Per-ViewPay-Per-ViewBusiness Services Consulting Business Services Consulting Commerce - Impulse BuyCommerce - Impulse BuyBroadcasting for consumers Broadcasting for consumers

and small businessesand small businesses

Jack RiggsJack Riggs

CFOCFO


Customer GrowthCustomer Growth

114114 new Business Services customers in new Business Services customers in Q4 ‘98 Q4 ‘98 – Continued expansion into vertical markets: Continued expansion into vertical markets:

financial services, distance learning, and financial services, distance learning, and automotiveautomotive

5959 new Advertising customers in Q4 ‘98 new Advertising customers in Q4 ‘98– Ad integration, video gatewaysAd integration, video gateways– More penetration with traditional media More penetration with traditional media

advertisersadvertisers

114 New Q4 Business 114 New Q4 Business Services CustomersServices Customers

AutodeskAutodesk Boston UniversityBoston University Cyberian OutpostCyberian Outpost Ernst & YoungErnst & Young IMF/World BankIMF/World Bank NCRNCR

Oracle Oracle TandemTandem Tenet Tenet

HealthSystemsHealthSystems TrilogyTrilogy Voice of AmericaVoice of America

59 New Q4 Advertising59 New Q4 AdvertisingCustomersCustomers

Amazon.comAmazon.com American AirlinesAmerican Airlines BigStar BigStar

EntertainmentEntertainment eBayeBay KodakKodak

NetfinityNetfinity Pacific BellPacific Bell PepsiPepsi PrimeCoPrimeCo VolvoVolvo

Recent DevelopmentsRecent Developments

SoftbankSoftbank– JV to create broadcast.com japan JV to create broadcast.com japan

NetRoadshowNetRoadshow– Acquired leading provider of Internet Acquired leading provider of Internet

financial roadshows financial roadshows

Record-setting 2 million unique users Record-setting 2 million unique users with Victoria’s Secret Fashion Showwith Victoria’s Secret Fashion Show

SalespeopleSalespeople

20

32 3438 41

54

66

85

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1998199819971997

MetricsMetricsMetricsMetrics

Business Services EventsBusiness Services Events

125151

188

276

349395

422

477

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1998199819971997


TrafficTraffic

130 150200

250

350400

520

800

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Average Daily Unique Users (in Thousands)Average Daily Unique Users (in Thousands)

19971997 19981998


2 Million Users - February 32 Million Users - February 354% increase Q4/Q354% increase Q4/Q3

Revenue MixRevenue Mix

BusinessBusinessServicesServices

62%62%

AdvertisingAdvertising

38%38%

19981998

Quarterly Revenue GrowthQuarterly Revenue Growth

$1.4$2.0

$2.5$3.2

$4.2$4.9

$5.7

$7.6

Mar June Sept Dec Mar June Sept Dec

$ Millions$ Millions

19971997 19981998

Operating ModelOperating Model

% Revenues% Revenues 1998 1998 TargetTarget% Revenues% Revenues 1998 1998 TargetTarget

Production CostsProduction Costs

Operations and Development Operations and Development

Sales and MarketingSales and Marketing

General and AdministrativeGeneral and Administrative

Depreciation and Depreciation and

AmortizationAmortization

Operating Income (Loss)Operating Income (Loss)

2020

6767

5353

2020

1515

(75(75

%%

))

10-1210-12

22-2422-24

27-2927-29

8-98-9

9-10 9-10

18-2218-22

%%

Investment HighlightsInvestment Highlights

Huge Opportunity in MultipleHuge Opportunity in MultipleLarge MarketsLarge Markets

First Mover AdvantageFirst Mover Advantage

Significant Barriers to EntrySignificant Barriers to Entry


Execution of Business PlanExecution of Business Plan

Entertainment & Humor

Roadshow