1. Digital Animation & Economic Development

2. Scope of Work RO, MK, BG, SCG Investors/Donors: 20+ Studios Visited: 30+ 1.Capacity 2.Education 3.Film Financing 4.Digital Media Parks -2-

3. 1.Capacity Findings Capacity exceeded expectations Many small studios Local advertising dependency Very high quality Some large studios (70+ employees) -3-

4. 1.Capacity Recommendations Production pipeline R&D effort Regional collaboration International Promotion Campaign -4-

5. 2.Education Findings Free Introductory Training (MK 3D@E-Schools) Professional Fee-Based Training (Chiron, Belgrade) On-the-Job Training (WorldwideFX) -5-

6. 2.Education Recommendations Replicate MK 3D @ E-Schools – BG Expand Chiron program Scholarship for women gender balance Shared curricula: E-Schools/Chiron/Universities -6-

7. 3. Film Financing Findings Government /Donor Agency Funding: Most countries have existing film financing funds Multiple donor agencies interested Private Equity Investors: Strong interest to invest in media projects Plenty of capital, but no capacity to evaluate 3 rd party expertise needed to evaluate deals -7-

8. 3. Film Financing Recommendations Secure $5M investment for film project Identify promising and real opportunities Identify other potential projects 3 rd party financial analysis Long Term: a targeted Digital Media Fund -8-

9. 4.Digital Media Park Benefits Professional space Wired and full capacity Collaboration/networking Lower rent Central services Incorporated training Rental of digital/film equipment -9-

10. 4.Digital Media Parks Findings Attractive to all studios Large building inventories University/Gov Partners Example: IRIDE (RO) and MK Venture capital exists to finance digital ventures But no real estate equity to finance digital parks -10-

11. 4. Digital Media Parks Recommendations Support local teams: BG and SCG Research properties Research funding for properties Development Team guides local teams Create an Eastern Europe Real Estate Fund and Regional Economic Development NGO The for-profit Fund finances the self-sustained NGO -11-

12. 4. $75 – 100 million Eastern Europe Real Estate Fund The Fund provides equity for economic development real estate projects and digital media parks: Spreads risk and reduces risk Cleans contamination Clears title Helps get permits/entitlements/land assembly Mobilizes government assistance With NGO partner, makes tough deals work -12-

13. 4. $75 – 100 million Eastern Europe Real Estate Fund Concentrates Real Estate Expertise: Structures financial deals that work Manages government, NGO and private relationship Attracts high-quality investment partners Attracts International Capital to region Creates Eastern Europe Economic Development NGO that is self-sustaining -13-

14. Eastern Europe Real Estate Development: The Challenge Many private equity funds in region But none are real estate focused Great untapped opportunities for a dedicated real estate fund Developers hindered by very high equity requirement (50% – 65%) Fund as partner shares this equity requirement Funds presence reduces future equity requirements -14-

15. Case Study: IRIDE Business Park 30,000 sq meter bldg dedicated to digital media Shared filming facilities and equipment Fully leased at construction 50% equity requirement is a burden on developer -15-

16. United States Experience Real Estate Private Equity Funds for Economic Development $0 in 1998 $3B in 2005 Institutional Investors (banks, insurance companies, pension funds) US Pension Funds want intl real estate investments Dramatic Impact on Economic Development Provides scarce equity Provides expertise to developers Cleans up contaminated property Assists with governmental process and approvals Funds self-sustaining regional NGO for economic development -16-

17. Real Estate Financing Recommendation Create a $75M – $100M Eastern Europe Real Estate Fund Converting old buildings and blighted factories/military sites ULI Conference findings Contaminated site/brownfield clean-up Revitalizing & re-positioning dilapidated buildings Housing Manufacturing Offices Technology Parks Business Parks Retail -17-

18. -18-