Grouper 3.0 / Crackle Update June 2007

2 Executive Summary From acquisition to-date, SPE has focused on integration and audience expansion –Leveraged SPE content and marketing strength (Seinfeld, Rescue Me, Spiderman) –Integrated Grouper into Sony hardware platforms (PSP, VAIO, Bravia) –Increased on-site audience and established distribution network to 100+ million monthly streams The market for user-generated video has evolved since our acquisition of Grouper –Competition among general UGV sites continues to intensify –Proliferation of low quality video is making it harder for users to find compelling content –Advertisers want to associate their brands with higher quality content SPE and Grouper are uniquely positioned to exploit the emerging market opportunity –Leverage Sony content expertise to marry Hollywood quality with viral nature of UGV –Utilize programming and incentives to attract and feature the best content –Syndicate the viral player and channels across the Global Video Network –Monetize audience through advertising sales by SPTAS and rep firms

3 Historical Growth of Grouper and the Global Video Network Grouper 1.0 “Share your videos with friends” Grouper 2.0 “Share your videos with the world” SPE Acquisition Grouper 3.0 “Marriage of Hollywood Quality & Viral Video” Mar ‘05 Nov ‘05 Aug ‘06 Growth of Global Video Network July ‘07 * Excludes ValueClick customers Grouper has seen significant growth in its audience since acquisition

4 Integrated with SPE Integrated Across Sony FY08 Initiatives Grouper in the PSP firmware Grouper service on IP-enabled Bravia Integrating Grouper for video sharing with Sony Ericsson and Sony Digital Imaging Grouper screensaver on all VAIOs Licensing content for digital delivery on PS3, including HOME initiative Unique SPE content offering -- ScreenBites DVD promotion for Seinfeld Season 7 Contests for SPE theatrical releases (Pursuit of Happyness & Spider-Man 3) Firehouse channel tie-in with Rescue Me Grouper’s Support for “Sony United” Digital Imaging

5 Evolution of the Grouper Home Page AT ACQUISITION Immersed Users in a Wide Variety of UGV TODAY Presents Editorialized Content on a Channel Basis

6 “Hollywood” ContentViral VideoThe Opportunity High quality content viewed by many Less viral and offers less variety than UGV Combine the viral nature of user-generated video with the quality of “Hollywood” content Unlimited variety of content Highly viral Lacks quality of traditional studio content Number of Videos in the Category Number of Viewers The Grouper 3.0 Opportunity Product re-launch positions Crackle to exploit the “mid-tail” strategy of online video

7 Key Tenants of the Grouper 3.0 Strategy ContentFameDistributionMonetizationProduct The best content not on TV Programmed in narrowly defined channels Institutionalize Fame Offer incentives that money can’t buy (status, distribution) Syndicate through network of partner sites Integrate with Sony hardware Leverage SPT Ad Sales relationships Monetize through ads and channel sponsorships High quality video playback Fame partner brands tightly integrated External player syndicates full experience Support for a wide range of ad types

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