1. CONFIDENTIAL DRAFT Digital Services and Distribution Acquisition Strategy

2. page 1 Executive Summary Grouper’s initial focus positioned it for growth during the early development of the UGV market –Strong, seasoned management team –Small but compelling base of content; focus on user-generated videos –Easy-to-navigate interface and technology for sharing content Emerging leaders are dictating a new set of minimum success requirements, broadening their audience, functionality, and content through acquisitions and new product introductions –Google acquires YouTube –MySpace launches MySpace Videos –Yahoo acquires JumpCut and partners with CurrentTV Sony must acquire to continue to meet minimum threshold for audience size and breadth of content/functionality –Near-term focus on increasing audience through syndication plays and acquiring broadly appealing content and functionality –Once minimum thresholds are met, seek opportunities to build a deeper offering, including expertise in specific content verticals and targeted functionality

3. page 2 The Current State of Market Evolution Rewards Broader Offerings Deeper Offerings Inception Tipping Point / Audience Growth Broader Offerings Multiple market entrants grow at similar rates Market Dynamic Minimum Requirements to Compete Areas of Differentiation Examples (2004 – 2005)(Early 2006)(Late ’06 / Early ‘07)(Late ’07 / Early ‘08) Content and features on-par with competitors Limited differentiation Dozens of pure-play UGV sites struggle to reach a million unique users Leaders break-out from the pack Single compelling characteristic Unique piece of content Ease-of-use YouTube explodes with “Lazy Sundays” MySpace users flock to improved community features Leaders expand to adjacent markets Larger audience Breadth of content Range of functionality Broadest range of content Network effect of larger audiences MySpace launches videos Google acquires YouTube Market rewards players with deep content catalogs and robust technology Ability to supplement broad offering with depth in specific verticals Content verticals have not yet gained traction –Yahoo media group continues to struggle Larger audience Broad offering Brand known for an area of expertise

4. page 3 Distinct Service Categories Formed at the Outset of Digital Video AggregatorsChannelPromotional On-demand videos programmed in channels or on a show-by-show basis Advertising supported, with some upsell to subscription Short video clips promoting the site owner’s content, merchandise, and brand May include some advertising and limited commerce capabilities Aggregate video across providers for purchase Includes sell-thru, rental, and ad-support User Generated Video (UGV) Allow audience to watch and share videos created and uploaded by users Primarily advertising based revenues Social Network Online communities enabling interactivity between users Primarily advertising based revenues

5. page 4 Players with the Largest Audience are Broadening their Offerings, Blurring the Line Between Service Categories Service Original FocusAreas of Expansion Aggregator Social Network Channel (e.g., Music Videos on Yahoo! Music) UGV – Acquired YouTube for $1.65BN UGV – Launched MySpace Videos Channel – Fox Full Throttle Store – Download-to-own Episodes UGV Tools – Acquired JumpCut UGV Content – CurrentTV Partnership

6. page 5 Digital Service Acquisition Considerations Considerations Near-term Approach Sony Skill Set M&A Landscape Phase of Market Growth Audience and 3 rd party distribution currently lagging and difficult to build organically SPE has expertise in-house to expand content and functionality –Repurposing SPE content and licensing from 3 rd party partners –Grouper leading development and licensing as needed Focus on narrow universe of significant acquisition targets Prioritize audience / syndication Seek partners that pair audience with broadly appealing content or functionality Limited window for compelling acquisitions –Competitors acquiring aggressively –Valuations increasing Current market phase demands broader offerings As market matures, it will reward depth Potential Future Expansion Point acquisitions to reinforce areas of differentiation –Targeted content –Features and functionality

7. page 6 Digital Service Acquisition Priorities Description Valuations Speed Priority Audience: Syndicators BreadthDepth Audience: Destinations AttractiveModerate Expensive Companies that syndicate video to a network of online partners Content and/or functionality with established audience Targeted content or functionality Sites with audience but no differentiated content Fast Gain traction quickly Fast Gain traction quickly Slow Requires multiple acquisitions Slow Requires content and functionality deals to supplement 1st2ndLow

8. page 7 Functionality + Audience Six Apart (10.4) Image Shack (9.3) Xanga (5.5) Reunion (4.7) MetaCafe (3.1) Digg (2.1) Putfile (1.4) Friendster (1.0) Tagged (0.8) Audience Syndicators PhotoBucket (12.0) Roo Media (5.8) Veoh (N/A) Brightcove (N/A) FeedRoom (N/A) Functionality Meetup (0.7) Piczo (0.5) Text America (0.5) Imeem (0.2) VideoEgg (0.2) eyeSpot (0.2) MotionBox (0.2) Famster (N/A) Content College Humor (0.9) JibJab (0.6) SingingFool/VideoDetecitve Broadband Sports (0.1) RocketBoom(0.04) Ruckus (0.02) Revision3 (0.02) Channel 101 (0.02) Content + Functionality Pure Video (0.9) Castpost (0.2) Now Public (0.09) Bix (0.08) Blip.tv (0.06) Dave.tv (N/A) Acquisition Candidates Audience Destinations DailyMotion (0.8) vidiLife (0.8) Content + Audience Break.com (3.3) eBaum’s World (3.0) Bolt.com (2.9) Heavy.com (2.7) Tier 1 Candidates Tier 2 Candidates Low Priority

9. page 8 Tier 1 Acquisition Candidates CompanyM&A BenefitsDescriptionAudience (1) Estimated Valuation Range Roo (2) New York Audience / Syndicator Video syndication platform Hosts and streams to third party sites Also has network of destination sites 5.8MM Unique Video Streamers (primarily syndicated) $33MM (Public RGRP.OB) $200K debt Heavy New York Breadth Content with large audience Skews toward 15-35 year old male demo Mix of video, animation, and games created by Heavy and/or its partners Takes full and exclusive ownership of content 2.7MM UUsApproximately $200MM per paidcontent.org Polaris led $10MM round in (1/06) Break Los Angeles Breadth Content with large audience Skews toward 15-35 year old male demo Provides an incentive for content (pays up to $1,000 for featured videos), but does not own content, takes an exclusive license Focus on humor, sports, games 3.3MM UUsApproximately $150-$250MM based on Digg and Heavy comps Being shopped by Montgomery, bankers to provide guidance Digg San Francisco Breadth Functionality with large audience Focuses on user ratings Content is a mix of categorized text (primary) and video (secondary) postings from blogs, news, and other sites 2.1MM UUsApproximately $150MM Passed on Newscorp offer because it was <$150MM Bolt New York Breadth Content with large audience Skews younger (31% 12-16, 32% 18-34) Content, includes video, photos, music Some social net features on Bolt2.com Does not own content, takes non- exclusive license 2.9MM UUsApproximately $150-$250MM based on Digg and Heavy comps Rumored to be for sale Metacafe Palo Alto Tel Aviv Breadth Functionality with large audience Primarily a UGV destination, does not own content Recently tested user rev sharing Has a robust on-site search tool 3.1MM UUsApproximately $150-$250MM based on Digg and Heavy comps (1)Monthly Unique Users per Nielsen Net Ratings except for Roo (2)Roo audience estimate is of unique streamers per ComScore

10. page 9 Tier 2 Acquisition Candidates CompanyM&A BenefitsDescriptionAudience (1) Valuation Considerations PutFile London Breadth Functionality with large udience Free file hosting and sharing site Has some UGV destination site features 1.4MM UUs$4MM asking price PhotoBucket Palo Alto Denver Audience / Syndicator Hosts photos and videos, enables linking to sites like MySpace and Blogger 12.0MM UUsApproximately $250-$450MM based on rough guidance from Jeffries Trinity led $10.5MM round (5/06) Pure Video Los Angeles Depth Functionality Operates a video search engine in partnership with Pixsy Runs StupidVideos and Grind (action sports videos) 0.9MM UUs StupidVideos=596K Grind = 282K Raised $5.6MM from Soft Bank in December 2005 JibJab Santa Monica Depth Content Focuses on jokes, humor, and animation Includes sponsored content (e.g., Bud Light commercials) 0.6MM UUsRaised undisclosed amount of funding from Polaris in June 2006 Revision3 San Francisco Depth Content Positioned as an online TV network Produces its own original content Founded by Digg’s founders 0.02MUUsRaised $1MM in funding from Marc Andreessen and Greylock Partners in September 2006 Bix Palo Alto Depth Content & Functionality User-generated contest site Users create and enter online talent competitions 0.08MM UUsRaised $6.77MM in first round Investors include Trinity and Sutter Hill Blip.tv New York Depth Content & Functionality Hosts high quality “Prosumer” shows Syndicates and licenses out tech (e.g., Oxygen is a licensee) Lets producers opt-in for post-roll ads 0.06MM UUsRaised undisclosed amount of funding in a July 2006 Series A round Imeem Palo Alto Depth Functionality Instant messaging with social networking Integrates with existing IM services Profiles with photos, music, and videos 0.2MMVenture backed by Morgenthaler Ventures (1)Monthly Unique Users per Nielsen Net Ratings

11. CONFIDENTIAL APPENDIX A – COMPANY PROFILES Profiles for Roo, Break, Heavy, Digg, Bolt, Metacafe, Bix, and PhotoBucket

12. page 11 ROO Group, Inc. (NASDAQ: RGRP) Key Developments ROO Group is an online broadcast network and a leading global provider of digital media solutions and technology that enable the activation, marketing, and distribution of video content over the Internet and emerging broadcasting platforms such as set top boxes and mobile communication devices Core activities include the aggregation of video content, media management, advertising, hosting, and content delivery Proprietary technology platform and infrastructure is largely based in the United States and is designed to be accessed and maintained from satellite offices anywhere in the world via a Virtual Private Network (VPN) over the Internet Operates a global network of individual destination portals under the brand ROO TV, that enables end users in different regions around the world to view video content over the Internet An independent research report which tracks the video streams sent to users per month placed us as the 10th largest broadcaster of video in the world (Source: iBroadcast Stream report released November 21, 2005 prepared by AccuStream iMedia Research. ) ComScore MediaMetrix ranks ROO Group as #10 among US streamed video sites (5.8 MM streams in July 2006) ROO was founded in 2001 and went public in 2003 Over 100 employees with worldwide operations in New York, Los Angeles, London and Australia August 1998 Originally incorporated as Virilitec Industries, Inc.; main business was to license and distribute a line of bioengineered virility nutritional supplements designed to enhance human male sperm count and potency; venture failed December 2003 Virilitec Industries, VRLT Acquisition Corp., a Delaware corporation and wholly-owned subsidiary of Virilitec Industries, ROO Media, Jacob Roth and Bella Roth, merged April 2004 Purchased 80% of Reality Group Pty Ltd, a corporation formed under the laws of Australia May 2004 Purchased the business and business assets of Undercover Media Pty Ltd., operating a music and entertainment site (www.undercover.com.au) September 2004 Purchased Bickhams Media, Inc. and the VideoDome property, an embedded video player integrated in to the ROO offering October 2005 Reality Group shareholders agreed to exercise their buyback option and ROO reduces ownership of Reality Group to 51% October 2005 Purchased 51% of Factory 212 Pty Ltd thorugh its subsidairy, ROO Broadcasting Limited Company Overview

13. page 12 NASDAQ Yearly Performance (as of 11/03/2006) Financial Overview ROO Group, Inc. (NASDAQ: RGRP) Recent Developments On August 18, 2006, the Company entered into a Common Stock Purchase Agreement pursuant to which the Company sold an aggregate of $5,506,250 of shares of common stock and warrants; each investor will be issued warrants to purchase a number of shares of common stock equal to 50% of the number of shares of common stock purchased Management Team Robert Petty, CEO and Chairman of the Board, ROO Group Robin Smyth, CFO and Executive Director, ROO Group Steve Quinn, COO Tristan Place, VP Sales/Strategic Partnerships Max Moore, VP Business Development

14. page 13 ROO Group, Inc. (NASDAQ: RGRP) Technology and Service Overview Core Services provided include: ROO Video Solutions - Customized video solutions for specific customers or industry segments; platform has been designed to be flexible in accommodating various opportunities for activating video for broadcast over the Internet and accommodating emerging technologies such as wireless devices (i.e., mobile phones and PDAs) and set top boxes ROO Syndication of Licensed Video Content - Provide a turnkey solution for customers located throughout the world to activate licensed topical video content on their web sites; Current customers for this service include Verizon in the United States, Bulldog Broadband in the United Kingdom and News Interactive a subsidiary of News Corp ROO’s Online Advertising Network - Through syndication clients, ROO has developed a network of web sites across which the company can sell advertising inventory The advertising includes traditional banner ads and television-style 15 second and 30 second commercials, which can be programmed to play before and after topical video clips that are most likely to be viewed by the advertisers' chosen demographic Syndication clients can receive a percentage of the advertising revenue generated on their websites Recent advertisers utilizing in-stream advertising have included Microsoft, Apple, Honda, Hyundai, Target, Proctor & Gamble and Pfizer

15. page 14 ROO Group, Inc. (NASDAQ: RGRP) Roo Group Inc.5,84118631.3

16. page 15 Comparison of Video Syndicators RooBrightCoveVeoh Background and Business Model Syndicates licensed content; offers customized video platform solutions; operates a network of ROO TV branded sites Payment includes licensing fees, payment-per-stream and/or ad revenue share Video syndication and publishing syndication Partners can syndicate to AOL and through TiVo Keeps 50% of ad revenue and 30% of product sales Initial focus was on using P2P to distribute free TV quality video over broadband Expanding to ad-supported and paid models ContentGenerally topical content (news, sports) Organized in 80+ channels and sub-channels Initially high quality professional content Opened platform to accept content from individuals Initially UGV Expanding to prosumer & professional content 6/06 started removing adult content TechnologyContent prep / hosting Ad insertion Content tracking In-video ad placement services Hosted video stores P2P platform focus Expanding to ad insertion and commerce CustomersVerizon, NewsCorp, EMI, A&E, FashionTV, Virgin,Reuters, Financial Times, TimesOnline National Geographic, Travel Channel, Warner Music, The New York Times, Washington Post TNT, Skateboard.com Traffic5.8MM Unique Streamers (1) 186MM Monthly Streams (1) Not AvailableUnique Streamers N/A 15MM Monthly Streams (2) Valuation / Funding$30MM (public on NASDAQ)$28MM in total funding including $16MM in 11/05 from AOL, IAC, and others $14.75MM in total funding including $12.5 in 4/06 from Michael Eisner and Spark Capital (1) Per comScore Video Metric (2) Per Veoh management estimate of roughly 500K streams per day

17. page 16 Break.com Content Offering Online entertainment network and community powered by traditional user-generated content Content base skews toward 15-35 year old male-oriented humor, sports and racy categories Majority of the content is original and created by users specifically for Break.com (Break doesn’t own content but takes and exclusive license to it) Pays $250/ video for videos it wants to feature, incentivizing users to create high-quality videos (est. to spend ~$250K/ month buying user videos) Partnerships Strategic Profile Established in 1998 as Big-Boys.com, a video-sharing site Purchased in May 2004 by Keith Richman, co-founder of Billpoint, and changed name to Break.com 100% owned by Richman and a few business partners – has never taken any venture financing Generate revenue through banner ($20 CPM) and text ads only – no pre-rolls Based in Beverly Hills, CA with 20 employees Leverages AdBrite to sell its banner and text ads Established partnerhsip with Amp’d Mobile in Nov. 2005 to distribute videos through mobile, charging $2.99/ month for unlimited access User Metrics Web page views (MM) Time/ person (min.) 141.2189.2 135.4 16.121.515.3 Internal Break.com sources estimate uniques of approx 13MM. Unique Users (MM) Note: estimated to generate ~100MM streams/ month Source: Nielsen//NetRating used for page view, time data, AdBrite; BambiBlogs.com; Break.com; Multichannel News; Amp’d Mobile; PureVideo; ComScore Video Matrix

18. page 17 Break.com Advertising: Banner ads – no pre-rolls or text Content User-generated Share it with friends (via e-mail) Embed & blog it Interactivity: Promote to home page Rate It Recommend Comment

19. page 18 Heavy.com Content Offering Broadband entertainment network focused on providing high- quality content Content base skews toward 18-34 year old male-oriented humor and racy categories Takes full and exclusive ownership of a range of content (mix of video, animation, and games) created by Heavy and/or its partners, e.g., NBC delivered through distinct channels Generates revenue through banner ads, pre-rolls, and branded production, e.g., Burger King videos Partnerships Strategic Profile Established in 1999 as a P2P digital content sharing site by Simon Asaad & David Carson Polaris venture capital holds a 25% stake in Heavy; Polaris lead a $10MM round in January 2006 Expected to generate ~$20MM adv. revenues in 2006, a 300% increase over 2005 (recently valued at ~$200MM – source: paidContent.org) Ad sales and marketing conducted internally Based in New York, NY with 20 employees Recently announced partnership with TiVo to provide content for TiVo’s VoD service Established partnership with Verizon Wireless in April 2006 and created a channel on V-Cast subscription mobile offering Parnter with Sony PSP, video iPod, and Virgin Mobile to distribute non-wireless mobile content User Metrics Web page views (MM) Time/ person (min.) 9.310.4 6.6 1.51.21.0 Unique Users (MM) Note: estimated to generate 80-90MM streams/ month Source: Nielsen//NetRating used for page view, time data, Heavy.com; Multichannel News; PureVideo; ComScore Video Matrix; paidContent.org; FT.com; VCMike’s Blog

20. page 19 Heavy.com Advertising: Banner ads Pre-rolls Content sharing: Heavy/ partner produced channels Share it with friends (via e-mail) Blog it Interactivity: Rate It Comment

21. page 20 digg.com Content Offering Online user-driven news/ information community providing direct links to stories and video sites Target IT professionals, developers, professional “geeks” and news junkies Content is a mix of categorized text (primary) and video (secondary) postings from blogs, professional news sites and random Web sites Users tag news stories they like (dig) and dislike, driving what content appears on the home page Partnerships Strategic Profile Established in Nov. 2004 as an information and news sharing site by Kevin Rose Closely held (Rose owns ~30-40%) with minimal venture financing – received $2.8MM round in Oct. 2005 to support initial growth Expects ~$3MM in advertising revenues in 2006 (recently valued at $200MM – source: BusinessWeek, 8/2006) Generate revenue through banner and text ads only – focused on growing audience with minimally invasive ads Based in San Francisco, CA with ~20 employees Leverages Federated Media to sell its banner ads Digg.com founders started a video production company, Revision3, in Sept. 2006 –Focused on high-end humor and tech content targeted at young, tech-oriented people –Advertising model is 1950s throwback – based on sponsors named in advance of ‘shows’ by hosts User Metrics Web page views (MM) Time/ person (min.) 6.14.9 11.7 2.22.12.5 Unique Users (MM) Note: estimated to generate 20-30MM streams/ month Source: Nielsen//NetRating used for page view, time data, Digg.com; Multichannel News; PureVideo; ComScore Video Matrix; Federated Media; HowStuffWorks.com; BusinessWeek (8/06); Red Herring

22. page 21 digg.com Advertising: Limited banner and text ads No pre-rolls (link directly to other video sites, e.g., YouTube) Content User-posted and recommended Share it (via e-mail) Blog it Interactivity: Edit It Rate (Digg) It Comment

23. page 22 Bolt Media Content Offering Online entertainment network and community powered by social network aspects where creative users can upload and submit content for competition Content base skews toward 18-34 year olds with focus on “prosumer” content Encourages interaction/feedback through the user's content – facilitating comments and blogs Partnerships Strategic Profile Established in 1996 as a teen community, Bolt has relaunched as an online network and community focused on posting creative content and network Focus on 18-34 year old audience Bolt Media has also launched Bolt2.com, enabling kids, tweens, and younger teens to create content, meet people, and play games in a safe and age-appropriate environment Based in New York, NY Currently leveraging creative relationships with the Hip Hop Theater Festival Developed significant advertising partnerships with companies such as Toyota, Coke P&G and Nike where users can enter immersive environments User Metrics Web page views (MM) Time/ person (min.) 20.925.0 82.4 2.31.56.2 Unique Users (MM) Note: estimated to generate ~100MM streams/ month NA Source: Nielsen//NetRating used for page view, time data, Bolt.com; ComScore Video Matrix; BusinessWeek (8/06); TechCrunch.

24. page 23 Advertising: Banner ads – no pre-rolls or text Content User-generated Embed & blog it Interactivity: Community Rate It Recommend Comment Bolt Media Advertising: Banner Ads Video Ads

25. page 24 Metacafe Content Offering Online entertainment network and community powered by traditional user-generated content and high-end produced content that is licensed in Utilizes VideoRank™ technology, allowing the site to mine and filter content Filtering system focuses Metacafe on a smaller number of high-quality selected videos to drive a large amount of traffic Developing revenue share with posters based on CPMs Partnerships Strategic Profile Founded in 2004, Metacafe boasts a global audience of 17 million unique visitors (comScore Media Metrix) A desktop client is used to upload and download the videos only about two dozen of which are newly approved each day Revenue model based on advertising (banner ads) Original round of funding yielded $5 MM from Benchmark Capital; Significant backing from Accel Partners and Benchmark Capital in second round, receiving $15MM in venture funding in July 2006 Based in Tel Aviv, Israel and Palo Alto, CA Currently seeking significant partners for licensing content User Metrics Web page views (MM) Time/ person (min.) 84.678.8 101.4 31.423.025.5 Unique Users (MM) Note: estimated to generate ~100MM streams/ month NA Source: Nielsen//NetRating used for page view, time data, Metacafe.com; ComScore Video Matrix; BusinessWeek (8/06); TechCrunch.

26. page 25 Content User-generated Embed & blog it Interactivity: Community Rate It Recommend Comment Advertising: Banner Ads Video Ads Metacafe

27. page 26 bix.com Recent Investors Enables consumers to create their Web-based talent competitions and enter existing competitions “Bix is a platform for creating contests online much in the mold of American Idol … The company plans to allow end- users to download their own audio clips and use them as ringtones for a small charge. Eventually the same content could be sold to others, and at that point the company is going to split the proceeds with the creators … Bix is hoping to cash in on the shift of ad-dollars to the online medium … these contests will be ideal vehicles for brand advertising.” (gigaOm) Content Offering Strategic Profile Formerly known as 900Seconds.com, bix.com was recently launched and operates a user-generated contest site Mike Speiser, Co-Founder and CEO was also the Co- Founder of ePinions Currently, the website is ad-free, depending solely on corporate-sponsored contests for revenue Bix.com is seeking alternative revenue sources, including advertisements on its site and user-generated ringtones Based in Palo Alto, California Workforce of 16 employees, mostly engineers from eBay User Metrics Unique Users (MM) * Bix was launched on August 8th, 2006. Forward estimates provided by Citigroup. Number of Rounds:1 Total Amount Raised ($ in mm):$6.77 Investors: Geoff Ralston Source: Motngomery & Co.

28. page 27 bix.com Advertising: Sponsored Contests Content Contest featuring user-generated content

29. page 28 Photobucket Ranking Among Photo Sites Popular sites offers subscriber based services for uploading and sharing photos Reliable service that enables efficient sharing and publishing of visual digital content online Images and videos can be directly linked form Photobucket to an site, including MySpace, eBay, LiveJournal, Xanga, Friendster, and Neopets Content Offering Strategic Profile Founded in 2003 and managed by Alex Welch Named fasting growing site of 2005 by Nielsen/Netratings and now has over 25 million users The site features free sharing and publishing of online images, graphic art and videos that can be directly linked from Photobucket to any site Revenues based on subscription for premiere products and banner advertising Based in Palo Alto, California and has workforce of 25 User Metrics Unique Users (MM) Web page views (MM) Time/ person (min.) 453.8522.3 375.8 12.111.68.4 Source: Citigorup Corporate and Investment Bank. 1. ComScore MediaMetric. September 2006.

30. page 29 Advertising: Banner Ads Content Slideshows and sharing Premiere product bundles Photobucket

31. CONFIDENTIAL APPENDIX B (Alternative Strategic Frameworks)

32. page 31 Market Evolution: Observations and Hypothesis Inception (2004 – 2005) Rapid Growth (Early 2006) Breadth (Late ’06 / Early ’07) Depth (Late ’07 / Early ’08) Multiple market entrants grow at a similar rate Players refine offerings to “good enough” status and focus on a small base of content and/or functionality Leading destination sites emerge based on differentiated feature or piece of content –YouTube explodes as users discover “Lazy Sundays” –MySpace users flock to improved community features Successful followers begin to build audience through partners/syndication –Grouper grows through Yahoo links and Friendster partnership –BrightCove, Veoh, and Roo build successful syndicator businesses Leaders broaden offerings through acquisition and product extensions –MySpace launches video –Google acquires YouTube Succesful followers continue to invest in audience and broaden offerings Laggards focus on narrow vertical offerings, hoping to differentiate and find audience Leaders build or acquire to create depth in specific verticals Targeted offerings that have found an audience are acquired at a premium or survive on a smaller scale Targeted offerings with smaller audiences languish or exit

33. page 32 Content College Humor (0.9) JibJab (0.6) RocketBoom(0.04) Revision3 (0.02) Channel 101 (0.02) Audience + Content Break.com (3.3) eBaum’s World (3.0) Bolt.com (2.9) Heavy.com (2.7) Audience+Functionality Six Apart (10.4) Image Shack (9.3) Xanga (5.5) Reunion (4.7) MetaCafe (3.1) Digg (2.1) Friendster (1.0) Tagged (0.8) PhotoBucket (12.0) Roo Media (5.8) Veoh (N/A) Brightcove (N/A) Feedroom (N/A) Acquisition Candidates Audience: Syndicators BreadthDepth Audience: Destinations 1st2ndAvoid AddictingClips (1.9) Putfile (1.4) DailyMotion (0.8) vMix (0.8) vidiLife (0.8) ManiaTV (0.6) Revver (0.5) Vimeo (0.5) Content + Functionality Pure Video (0.9) Bix (0.08) Blip.tv (0.06) Dave.tv (N/A) Functionality Meetup (0.7) Piczo (0.5) Text America (0.5) Imeem (0.2) eyeSpot (0.2)

34. page 33 Digital Service Acquisition Priorities Deep Content + Functionality Lower Priority Potential for small to medium acquisitions Deep Lower Priority Potential for small acquisitions to round-out feature set Audience - Destination Site Avoid Pureplay destination sites generally overvalued Broad Audience + Content High Priority May require significant investment Broad Audience + Functionality High Priority May require significant investment Deep Lower Priority Potential for small acquisitions to address specific demographics Audience - Syndicators High Priority High-value opportunities