1. Embassy Row Acquisition Overview
November 2007
Confidential Draft

2. Executive Summary
Michael Davies will be the cornerstone of our game/reality format business
Format business represents a critical growth area for SPE
Game/reality shows lend themselves to syndication and international formatting, creating a highly profitable business
As the creator of Power of 10 and numerous other shows, Davies has a proven track record of success in the industry and with SPT
After evaluating alternatives for expanding our relationship with Michael Davies, we recommend an acquisition of his company, Embassy Row
Provides the foundation for a global format business
Builds enterprise value
Better aligns Davies incentives with our own
We are requesting approval to submit a non-binding LOI for the acquisition of Embassy Row for $20MM plus performance-based earn-outs of up to $14.5M
Earn-outs tied to EBITDA hurdles in years 2, 3, 4, and 5, tying Davies incentives to profitability
Deal would include a 5 year exclusive employment contract with Davies
Once acquired, Embassy Row (inclusive of current shows such as Power of 10) is estimated to be break-even in the first year and be EBIT additive thereafter

3. Comparable M&A Multiples Support Proposed Valuation
Date
Target
Acquiror
Transaction Value (m) (100%)
Transaction Value /
Last FY Sales
Last FY EBITDA
Last FY EBIT
Sep-07
Metronome Film & Television
Schibsted ASA
£31.4
0.4x na
18.8x
Twenty Twenty Productions
Shed Media
£18.0
1.9x
8.6x
Aug-07
Sparrowhawk Media
NBC Universal
£175.0
1.8x
Objective Productions
All3Media
£50.01
2.2x
Jul-07
Marathon Group
De Agostini
€250.0
3.6x
Prospect Pictures
DCD Media
£7.1
0.9x
3.9x
September Holdings
£9.1
1.2x
12.9x
West Park Pictures
£3.0
2.7x nm
May-07
Endemol
Investor group incl. John de Mol
€3,396.8
3.0x
19.2x
21.2x
Jan-07
Princess Productions
Shine
£20.0
8.5x
Endemol France
Endemol NV
€450.0
2.6x
Dec-06
WWTBAM & Cellador
2waytraffic
£111.52
3.8x
7.3x
Kudos
£35.0
11.0x
11.3x
Aug-06
Secondary buy-out (Permira)
£320.0
1.4x
11.5x
12.3x
May-06
Tiger Aspect Holdings
IMG Media
£27.02
12.1x
15.1x
Apr-06
Darlow Smithson Productions
£20.02
1.0x
Odeon Film
GFP Vermögensverwaltungs
£15.63
4.3x
4.5x
Mar-06
Hurricane
Spütz
Dec-05
IWC
RDF
£14.02
0.8x
17.5x
19.5x
Nov-05
Ricochet
Shed
£30.02
2.0x
14.1x
Oct-05
TV Corp
Tinopolis
£27.7
0.6x
Aug-05
Touchpaper Television
£4.2
11.9x
Median
Average
1.7x
Median Multiple
ER Figures (MM)
Implied Value (MM)
Sales
1.4x
$28.6
$40.0
EBITDA
11.5x
$3.4
$39.1
EBIT
12.9x
$43.9
Average Implied Value (MM)
$41.0
PV of Proposed Deal Structure (assuming high-case payout) (MM)
$25.6
Estimated consideration
Median of upfront and earn-out inclusive multiple
Includes maximum earn-out
Source: Offer Memorandum, LTM multiples to June 2007, Forecasts from ING research, 3 August 2007

4. Overall Assumptions for Operations
Embassy Row is a viable acquisition with limited incremental investment
ER programs can be syndicated and formatted around the world
New formats will be based on SPE library product, new U.S.-based development, and acquired international formats
9 additional people will be hired (plus assistants)
3 to sell international formats
3 to acquire international formats for domestic development
3 to develop internally
The business will be managed as an independent unit within SPT
Dedicated P&L for all Embassy Row activities
Acquired international production Cos. would report directly into this business unit

5. Incremental Value of Acquisition vs. Deal Extension
Deal Structure
PV of cash flows (including earn-out and terminal value) less purchase price
Inclusive of recoupment of EP fees for 2008
Includes additional overhead costs, G&A and dev. budget
Includes two acquired product per year
Formats sold in 17 territories
$20.0MM up-front payment
Up to $14.5MM in earn-outs tied to EBITDA on ER shows (Power of 10 and new shows)
100% of earn-out paid if EBITDA target is met
0% of earn-out paid if EBITDA is below a floor
Pro-rated if EBITDA is between floor and target
5 year contract and an additional 2 year non- compete
($ in MM)
UPDATE (values will based on 5 fiscal years,
Use OLD Davies participation calc)
Initial consideration largely attributed to buy-out of Power of 10 Participation, future shows, and contract/non-compete; amortized over 5 years
Earn-outs expensed

6. Detailed Assumptions Low Case Mid Case High Case
Model Assumptions
Model Assumptions
Model Assumptions
EP Fee: 10%
Overhead Reimbursement: 0%
EP Fee: 10%
Overhead Reimbursement: 0%
EP Fee: 10%
Overhead Reimbursement: 10%
Deal Assumptions
Deal Assumptions
Deal Assumptions
$20MM cash at close
Earn-outs not achieved
$3.5MM of amort for 5 years
$20MM cash at close
$2.7MM of earn-outs achieved
$3.5MM of amort for 5 years
$20MM cash at close
$10.6MM of earn-outs achieved
$3.5MM of amort for 5 years
Profit from Format Business (includes current shows / P10)
Profit from Format Business (includes current shows / P10)
Profit from Format Business (includes current shows / P10)
Incremental Value
Incremental Value
Incremental Value
Value of Cash Flows (1): $X
Value of Exit (2): $X
PV of Consideration: ($20.0)
Incremental value: $X
Value of Cash Flows (1): $X
Value of Exit (2): $X
PV of Consideration: ($21.3)
Incremental value: $X
Value of Cash Flows (1): $X
Value of Exit (2): $X
PV of Consideration: ($25.6)
Incremental value: $X
UPDATE (values will based on 5 fiscal years,
Use OLD Davies participation calc)
Notes: Assumes a 16.5% discount rate
(1) Includes value of new shows and excludes value of shows created under current contract (i.e., excludes P10 from incremental value calculation)
(2) Includes exit at 7x multiple in 2013 based on shows created in 2009 or late