1. DCIA Keynote MARCH 9, 2010

2. Confidential 2010 Diversion Media LLC What is the Cloud? Computing as a utility As many processors as you want, instantly The new century time share Where Google has been living all this time!

3. Confidential 2010 Diversion Media LLC Who Belongs There? Anyone who needs lots of processing power Image processing (Media, Medical) Analytics (Finance, Online, Sales) Computational modeling (Pharma) Anyone who needs to scale fast Nearly all new web apps

4. Confidential 2010 Diversion Media LLC WHAT IS HD CLOUD? Handles large files and HD bit-rates (1080, 200Mbps) Offers massive concurrency, throughput, and redundancy. Leverages cloud computing to deliver tremendous economy versus traditional encoding solutions. 700,000+ Transcodes since May 09 launch Benchmark: 900 Simultaneous 100Mbs transcodes HD Cloud is an enterprise-grade, on-demand TRANSCODING SERVICE.

5. Confidential 2010 Diversion Media LLC WHO ITS FOR CONTENT OWNERS with large libraries of media CONTENT DELIVERY NETWORKS who want to add best-of-breed transcoding to their ecosystem VIDEO SERVICE PROVIDERS with a need for massive encoding throughput

6. Confidential 2010 Diversion Media LLC WHY THE CLOUD? Transcoding: computationally expensive process High peak-to-trough ratio (bursty) CapEx hurts media companies more than ever Rapidly growing need-set requires high scaling

7. Confidential 2010 Diversion Media LLC VALUE PROPOSITION HIGH QUALITY output RAPID turnaround LOW COST ($0.99/GB; $144/Feature*) HIGHER MARGINS *assumes 20Mbps mezz file, 500Kpbs, 1Mbps, 1.5 Mbps, 2 Mbps, & 2.5 Mbps outputs

8. Confidential 2010 Diversion Media LLC CUMULATIVE COST OVER TIME COMPARISON 3 dual core servers, software licenses, AC, rackspace, power, codec licensing, personnel and training Internal Solution assumes: $1 per Gigabyte, 1 staffer HD Cloud assumes:

9. Confidential 2010 Diversion Media LLC SPEED COMPARISON How long does it take to encode 100 2- hour movies? Internal Solution has 3 dual core machines for 6 concurrent encodes. HD Cloud allows 100 concurrent encodes. Initial file ingestion at 30Mbps factored into HD Cloud time.

10. Confidential 2010 Diversion Media LLC PREMIUM SERVICES 1. Source File is de-muxed and segmented 2. Segments are transcoded concurrently on multiple processors 3. Segments rejoined and re- muxed for final outputted file HD Accelerate - Encodes any length file in 12 minutes - Great for large files (full length movies) and big library re-encoding jobs

11. Confidential 2010 Diversion Media LLC DEMO http://www.hdcloud.com