1. Slingbox INNOVATIVE NEW PRODUCT Lindell Chew

2. General Business Purpose What is Sling Media, Inc A digital lifestyle products company creating a family of consumer electronics products that are a natural extension of today’s digital way of life The first member of the Sling Media family is the award-winning Slingbox™.

3. Products What is Slingbox- A groundbreaking piece of hardwired ingenuity that will literally transform the way you watch television, for only $249.99 It allows consumers to access their living room television experience at any time, from any location. Uses a variety of different displays including laptops and desktop PCs, handheld computers and smartphones Slingbox Intro Video

4. Price $250.00 No additional monthly or service fees Value Pricing -not too high but still suggests quality -because consumer takes a risk with an unknown brand it needs to be priced to reflect value

5. Distribution Selective Available at home website, Comp USA, and Best Buy. Not exclusive so that product would be available at stores our target market shops at. Not intensive to reflect higher quality.

6. Existing Competition No direct competition Indirect competition at the product category, generic and budget competition level –Hotel Movies and Television –Streaming Online Video –DVD’s –MLB TV

7. Threat of New Entrants Many companies with technological know- how with large R&D budgets could easily enter the market pending progressive growth Companies with a computer-based platform (Microsoft, Dell, Hewlett Packard) Companies with a television-based platform (Sony, Hitachi, Samsung)

8. Problems & Opportunities Opportunities –First to Market – Market Share Supremacy –Partnership with Texas Instruments and Microsoft Window digital media –Internet and cable use (Requirements) are at an all time high and continue to grow

9. Problems & Opportunities Problems –Set up/Technology my discourage customers especially older population –Power house, entering the market and

10. Target Market (size)- 3.5 Million Cross section of people with cable/satellite TV and high speed internet Affluent, tech savvy business travelers Age 25 to 55 30 top urban cities

11. Promotional Mix  Promotions Subtotal-- $4,375,000 10% of Net Sales Revenue

12. Promotional Percentages  Advertising 60% of Promotional Budget $2,625,000 Highest percentage Need to create market awareness Need to create positive image for new product  Public Relations 20% of Promotional Budget $875,000 Large portion of $ goes to pay staff or P.R. firm Responsible for maintaining a positive image towards Slingbox

13. Promotional Percentages Cont...  Internet 10% of Promotional Budget $437,500 Small Percentage: + It’s Cheap + Lot of “Bang for your Buck” -- Can be too Intrusive  Sales Promotion 10% of Promotional Budget $437,500 Small Percentage: + Can persuade consumers to buy -- Can be harmful to image

14. Advertising Example  SkyMall - Catalog Cost: $92,600 4% of Advertising Budget Reach: 155,000 passengers per quarter Positive Attributes: Captivated audience Average passenger spends 15 to 30 browsing the catalog Best possible way to target business travelers

15. Advertising Example  Business Travelers News – National Magazine Cost: $404,260/year for 29 issues ½ page tabloid spread ads 15% of Advertising Budget Reach: 54,800 subscribers Pass along value/word of mouth would account for a much higher number being reached. Positive Attributes: Focused directly on corporate business travelers

16. Public Relations Budget – $875,000 Must be of interest to the audience of the medium chosen Conduits with similar Reader Profiles to Slingbox’s target market Press releases to mediums advertising in as well, like BTN Examples of outlets to release information to:

17. The Wall Street Journal U.S. Circulation – 1,826, 493 Average age – 50 Graduated college or more – 76% Average household income - $192,324

18. Fortune Magazine 830,000 copies circulated monthly 83% graduated from college Median household income is $165,200 88% traveled by commercial airline in the last year 91% have a home computer 85% are employed in the business, industry or the profession

19. Internet Activities Links to Slingbox’s website or Banners ads on TiVo's website Cross promotion effortTiVo's website Banner ads on Business Travelers News Online, Skyscraper - $1,840 MonthlyBusiness Travelers News Online Travelocity

20. Sales Objectives It is projected that in its first year of business Slingbox will sell to five percent of its total target market. Therefore sales in its first year will total 175,000 units with sales of $43,750,000 in 2006. Project a slight increase in sales in following years

21. 3 Year Projected Income Statement 200620072008 Revenue: Net Sales Revenue$ 43,750,000$ 44,187,500$ 44,629,375 Expenses: Cost of Goods Sold30,625,00030,047,50029,009,094 Advertising2,625,0002,386,1252,142,210 Public Relations875,000795,375714,070 Personal Selling437,500397,688357,035 Sales Promotion437,50039,688357,035 Promotions Subtotal4,375,0003,976,8753,570,350 General & Administrative1,312,5001,325,6251,338,881 Testing/Evaluation218,750220,938223,147 Total Expenses$ 36,531,250$ 35,570,937$ 34,141,471 Taxable Income7,218,7508,616,56210,487,904 Less: Taxes (34%)2,454,3752,929,6313,565,887 Net Income$ 4,764,375$ 5,686,931$ 6,922,017

22. NPV, Payback Period and IRR NPV - $1,459,619.57 IRR – 27.96 Payback Period – 2.19 years, initial invest of 10.5 million in venture capital secured to launch product