2. Agenda Metacafe Overview The Metacafe difference Video business model Introducing Producer Rewards TM

3. World’s largest independent video site Global traffic Pages viewed Time spent on site Only site that mines the collective wisdom of its audience to filter and surface the most entertaining videos Best platform for connecting a large and global audience with high quality video content Metacafe Overview

4. Metacafe is one of the world’s largest video sites 17 million unique viewers and 500 million page views each month –comScore, September 2006 3rd largest video site in the world behind YouTube and Google Video –comScore, September 2006 Top 10 online entertainment destination for males 18-34 –Nielsen Net Ratings, Aug 2006

5. Metacafe is the Largest Independent Video Site Source: comScore Media Metrix. September 2006

6. Over 400% growth since January 2006 Rapid Growth in Metacafe’s Audience Source: comScore Media Metrix. Does not include viewers of client or embeddable player.

7. Rapid Growth in Metacafe’s Audience Source: comScore Media Metrix. 800% growth since January 2006

8. The Metacafe Difference

9. Metacafe: The Quality Difference Metacafe is not a video sharing site – it is an online video destination Metacafe surfaces and serves only “entertainment-grade” content. Video search “footprint” eliminates duplicates & improves relevancy 100,000 reviewers filter out inappropriate or uninteresting content VideoRank mines collective wisdom of viewer to determine site placement.

10. Metacafe Community at Work Thousands of videos submitted to Metacafe each day Video footprint search eliminates duplicates VideoRank™ surfaces quality content to top VideoRank™ - Proprietary algorithms factor in all aspects of viewers’ interactions with video content to determine rating and placement on the site. Video makes it to home page 100,000 reviewers filter out content that is inappropriate or only interesting to a few

11. Best Place to Watch & Distribute Quality Short Video Comparison of top 200 views on October 13, 2006 12% more views on Metacafe 

12. Metacafe Discovers the Best of Long Tail Content # of Views Video submissions Video sharing sites

13. Benefits to Video Creators & Content Owners Any great short video can skyrocket to the front page based solely on content quality as determined by VideoRank Content creators don't have to market their own videos or rely on being "noticed" by a content editor Content partners can quickly discover the gems in their inventory

14. Online Video Business Model

15. Video Is An Exploding Market Short video is joining film, music and TV programming as a key streaming entertainment format. 24% of all Internet users access videos at least once a week, while 46% watch videos at least once a month (Online Publishers Association) Approximately 80% of videos consumed online are short form videos, as opposed to full-length programming. (AP-AOL Poll) Online video is expected to grow faster than any other form of Internet advertising, including search, reaching $1.5 billion by 2009. (eMarketer) Revenue from mobile video for entertainment purposes could grow to more than $6 billion per year in the US by 2011. (Instat)

16. The Next Big Entertainment Opportunity The market is looking for a steady stream of engaging short video clips that are licensed and ready to distribute on multiple platforms Where will this content stream come from? Traditional media: costly, expertise in long format programming; copyright concerns UGC: hard to control; no quality standard; copyright concerns but highly scalable Only 2 players have the content, traffic & global distribution to deliver “entertainment-grade” UGC video on a regular basis YouTube is focused on studios and major labels Metacafe is focused on best of class UGC And now Metacafe is introducing a compelling new program to motivate creators to submit great content…

17. Metacafe News Oct 30, 2006 Producer Rewards

18. Producer Rewards™: Packaging the Best of UGC Video = ULC Producers are paid $5 CPM once views exceed 20,000  in exchange for licensing their content to Metacafe (non-exclusive) During one month beta: Producer Rewards videos were seen more than 10 million times 30 video creators earned more than $60,000 combined from their work Metacafe gained rights to hundreds of UGC clips with proven appeal

19. Producer Rewards: Joe Eigo Name: Joe Eigo Location: Toronto, Ontario Occupation: Martial artist Video: Matrix for Real Number Views: 4.5 million Average Rating: 4.83 $ Earned: $23,000 “It’s almost like winning a jackpot. As an independent video producer, you wouldn’t be able to make that level of income in 5 to 10 years of work, but with Metacafe, you can make thousands a month and reach an amazingly appreciative audience.” - Tommy Chang, a martial arts master instructor & stunt producer http://www.metacafe.com/watch/7203/matrix_for_real/

20. Producer Rewards: Brandon McConnell Name: Brandon McConnell Location: San Diego, CA Occupation: Groundskeeper at the San Diego Zoo Videos: Amazing Spray Painting, Amazing Sprayer Number Views: 1 million+ Average Rating: 4.52 $ Earned: $5,300 “Metacafe is awesome. I've made thousands of dollars through ProducerRewards and sales of my paintings and videos at my site have tripled in the last four months. I get emails from people around the world saying things like 'you inspire me.” - Brandon McConnell http://www.metacafe.com/watch/129667/amazing_spray_painting/

21. Producer Rewards: Mark Exner Name: Mark Exner Location: Grayneck, NY Occupation: Student Video: Orcas in Antarctica Number Views: ~200k Average Rating: 3.7 $ Earned: $900 “You can’t just tell people what it’s like to see real orcas in Antarctica, you have to show it. I plan to soon post some videos of penguins in Antarctica; they are very funny creatures!” - Mark Exner http://www.metacafe.com/watch/181730/killer_whales_orcas_in_antarctica/

22. How it Works: Submitting A Video Any short video can be submitted as long as it is owned by the creator and suitable for all audiences Once a video is accepted, it’s exposed to Metacafe’s community of 13 million viewers It’s up to the Metacafe audience to determine the success of a video Site placement is automatically determined by VideoRank Any great short video can skyrocket to the front page No promotion required on part of the creator

23. How it Works: Getting Paid Content creators are paid $5 per 1,000 views Payment begins after 20,000 views for all videos with a 3.0 rating or above Viewers do not have to click through on an ad Multiple payment options  PayPal; Payoneer; Direct Deposit Metacafe estimates that 30% of videos on the Metacafe site have exceeded the 20,000 view threshold

24. Company Background Founded 2003 Arik Czerniak, CEO Eyal Hertzog, Chief Product Officer Investors Accel Partners Benchmark Capital Offices Offices in Palo Alto, CA and Tel Aviv, Israel