1. Confidential Draft Game Show/Reality Format Business November 2007

2. 1 Executive Summary The game / reality format business represents a critical growth area for SPE –Reality shows represent nearly half of the top 20 shows in the demo –The overall demand for reality formats grow –Game / reality shows lend themselves to international formatting, creating a highly profitable business Michael Davies will be the anchor of our format business –Davies has a proven track record in the space –Davies current deal expires in early 2009 –We need to extend the relationship to provide continuity and a platform for growth An acquisition of Davies’ company, Embassy Row, is the best method for expanding our format business –Evaluated both deal extension and acquisition –Acquisition provides a better long-term platform for growth and can be extended through complementary acquisitions in international territories

3. 2 The total number of reality shows on air continues to grow –During 2006-07 season 51 reality shows aired in network primetime a 31% increase over the 39 reality shows aired five years ago Reality shows are also growing as a percentage of network primetime –Reality now represents 27% of the primetime schedule, having grown from 8% of network programming 5 years ago –Reality represents over 40% of summer programming Reality show success is driven by their ability to generate high ratings –During 2006-07 season, almost half (45%) of the top 20-rated programs among A18-49 were reality programs Reality Business Continues to Grow

4. 3 Alternatives for SPT to Expand on the Davies Relationship 2 Year ExtensionAcquisition Pros Cons Structure Increase overhead to $2.5MM per year SPE owns all copyrights Davies retains online and mobile rights Other economics in-line with current deal Up-front consideration of $25MM $30MM of earn-outs tied to EBIT targets ($10MM / yr for 3 yrs) 3 year contract with Davies Format business run as a separate P&L within SPT Less expensive; lower risk than outright acquisition Shorter relationship limits ability to add complementary acquisitions Less appealing to Davies; lower likelihood of closing Does not acquire all rights Higher appeal to Davies, greater likelihood of closing Longer relationship; easier to build with complementary acquisitions Acquire all rights, including new media More expensive, riskier

5. 4 Key Assumptions Embassy Row is a viable acquisition with limited incremental investment –Develop and launch new series for Network and Cable –Extend existing slate into syndication –Hire [3] sales people to sell formats internationally and [3] people to acquire successful international formats for domestic development We will also seek complementary acquisitions to grow Embassy Row into a true international business –Acquire multiple international production companies to increase local development, sales, and acquisitions –High priority countries for acquisitions include UK, Mexico, and Australia

6. 5 SPE Slate/Project Tracker [Break into two pieces / expand to be more legible]

7. 6 Summary P&L Summary P&L – Full Reality / Game Business (Revenues, Pdtn Expense, HC Expense, EBITDA, Deal Amortization, EBIT) Acquisition Valuation DCF of Income and Exit (8x) Less DCF of Current Deal Less DCF of Investment/Earn-out NPV Extension Valuation

8. 7 Next Steps Complete high level price discussions with Michael Davies Submit / negotiate LOI Enter exclusive diligence period Close acquisition Expand Embassy Row team Begin screening complementary acquisition targets

9. 8 Appendix

10. 9 Detailed P&L

11. 10 SPE Slate Assumptions New Shows -- Developed Product Network –1 pilot generated every year –1 pilot is picked-up every other year –1 becomes a success every other year –Produce 26 eps on network per year –The successful "big show" airs on network for 2 years before going into 1/2 hour First-run syndication –License format internationally of successful shows –"Looks like Power of 10 Network" First-run Syndicated Show –Begins after 2nd season of successful network show and runs for the remaining life of show + 2 years –Produce 195 eps (39 weeks, 5 eps/week) of first-run show) –"Looks like Crosswords Syndicated Strip" Cable Show (Ex. Reality Show format) –3 pilots generated every year –1 pilot is picked-up every year –1 becomes a success every other year –Produce ~10 eps per season –License format internationally of successful shows –"Looks like a show on GSN/WSOPC" New Shows -- Acquired Product –Acquired Product –1 generated every year –1 becomes a success every other year –Produce ~40 eps per season –License format internationally of successful shows –40% Revenue Share Format Licensing –Sell formats of successful shows starting during Season 2 for the remaining life of show + 2 years –~40 Episodes per format Additional Items to Include –Need to add mobile, internet and other ancillaries

12. 11 Industry Averages for Reality Show Performance [Add Data from Mumford’s team]

13. 12 SPE Model Assumptions

14. 13 Embassy Road Slate/Project Tracker