1. 1 Adlabs Films Limited Investor Presentation March 2007

2. 2 Forward Looking Statements This presentation contains statements that constitute “forward looking statements” including, without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that we have indicated could adversely affect our business and financial performance. Adlabs Films undertakes no obligation to publicly revise any forward looking statements to reflect future events or circumstances.

3. 3  A Reliance Anil Dhirubhai Ambani Group company  One of the few listed players in the Indian movie sector  Present across the value chain  The leader in film processing  A pioneer and one of the leaders in multiplexes  Interests in production and distribution of movies, TV content and animation  Experienced management with a 25 year track record  Significant goodwill within the industry  Operating under a corporate umbrella for over 15 years in the industry  Extremely strong balance sheet Introduction

4. 4 Adlabs – Milestones  1978: Started with ad films processing  1989: Entered main stream cinema processing  2000: IPO and listing on the exchanges  2001: Mumbai’s first multiplex and India’s first & the world’s largest IMAX dome  2001: Select investments in film co-production  2005: Reliance ADAG acquired majority stake in Adlabs

5. 5 FY 2004FY 2005FY 2006 (9 months) Dec 07 CAGR Revenues1922295447.4 % EBITDA810121733.1 % PAT4561352.4 % Net Worth242777 Debt363 RONW (%)17.018.37.8 All figures in US $ Million  Infusion of US $ 152 million in FY 2006  US $ 50 million as Equity  US $ 102 million by way of FCCBs Financial highlights

6. 6 Manmohan Shetty  Founder – over 27 years of experience in the entertainment industry  Oversees strategic business planning, finance and business development  Chairman of National Film Development Corporation  Member of screening committee – IDBI Institutional film financing  Member of the FICCI committee on entertainment industry Board of Directors  Manmohan Shetty  Pooja Shetty  Karan Johar  Bergis Desai  Shripal Morakhia  Gautam Doshi  A management committee steers strategy  The members of this council are senior Reliance ADA executives and members of the Board Core Management

7. 7  One of the fastest growing sectors in India  Currently estimated at US $8 billion, CAGR of 19% over the next five years  Largest film industry in the world  More than 1,000 films  And the highest number of admissions at over 3 billion  Demographics and rising affluence driving growth Source: The Indian Entertainment and Media Industry: 2006 report (PWC) Indian Media & Entertainment Industry - Overview

8. 8 Movies are a dominant influence  Movies central to entertainment in India  Music, radio and much of TV content revolves around films  Influences Internet, gaming and newer forms of entertainment  Widely fragmented, dominated by family owned and small enterprises  Organized capital and corporatization just beginning to enter the industry  Organized retail consumption formats (malls, multiplexes, DVDs) providing strong impetus for consumption-led value growth

9. 9  Expand vigorously within the multiplex space  A format supported by consumers, distributors and the government  Adlabs one of the few companies with multiplex experience  Roll out in progress  Maintain pole position in film processing  Enhance footprint by expanding into South & East India  Expand scope to production infrastructure and services  Invest in content production – movies, television & animation  Manage risk on a portfolio basis with risk limits  Invest in overseas distribution channel and select local distribution  Examine new opportunities, as it is a nascent industry Core Strategy

10. 10 Publicity Processing Post-production Studio & Eqpt Shooting Above-the-line (star cost etc.) Others Satellite Home video / music Overseas Indian theatrical Production cost = 100 (Creation) Gross retail sales = 350 (Consumption) Constructed from data across a sample of movies 50% 20% 13% 14% Value chain elements in content creation and consumption

11. 11 Content creation Services Consumer facing  Movies  Television  Animation  Film processing at Mumbai, Chennai (South India), Kolkata (East India)  Expanding portfolio by investing in studios & infrastructure  Exhibition (Multiplexes)  FM Radio Distribution  International distribution with presence in USA & UK  Key film territories of Mumbai, Maharashtra, Gujarat, Delhi, UP and Punjab Adlabs’ presence : from creation to consumption

12. 12 Uses  Over the next three years invest around US $180 million  40% in film exhibition  15% in processing and infrastructure creation for production services  20% in content production and distribution  Earmark 25% for new initiatives Sources  Equity infusion of US $56 million  FCCBs of US $102 million  Internal accruals Investment Plans : Horizon 2006-2008

13. 13 Film Exhibition

14. 14 US $1.6 billion market; flowing from 400 cities/ towns across India Top 50 cities (40-45% of all-India box- office) have inadequate screens/ below par customer experience – implying significant growth opportunities, e.g. Ahmedabad, Surat: 170 people per seat Lucknow: 110 people per seat Chennai: 90 people per seat Over 8,000 active screens but only about 1,000 provide acceptable consumer experience Dominant players: PVR (80 screens), Adlabs (66), INOX (55), Shringar (36) Capital intensive business No. of Admissions (in million) No. of Screens (per million) Source: The Indian Entertainment Industry: 2005 report (PWC) Market overview

15. 15  Focus on prolific film markets: Hindi, Tamil and Telugu  Expansion based on a 2 pronged strategy  Link to film markets: theatres across India – A chain  Focus on key cities based on consumer spend surrogates  Engineering and project management skills to execute – low to high capex per seat – driven by consumer paying capacity  Acquisition of existing single screens for remodeling/refurbishment Strategy

16. 16 Location (Cumulative) Screens (Cumulative) Admits (in millions) March 054173 million March 068315 million March 0716669 million March 086516517 million March 0913031544 million  Utilize scale to negotiate contracts: Capex, Opex, F&B, promotions, movies  Focus on profitability per consumer Expansion

17. 17 Film Processing and Production Services

18. 18  In India, film processor serves the following roles  Often funds film feedstock required by producer (1-10% of costs)  Keeps finished film in trust till distribution rights are sold  Releases film to distributors only after financiers are repaid  Is a financier, a custodian and a service provider  The commercial ecosystem – the producer, the financiers and the distributors – repose complete faith in the processor  Processors develop long and deep relations within the industry Film Processing : An Introduction

19. 19  Market leaders with over 70% share in the Hindi movie segment  Only dominant lab to be certified Kodak Image Care  Geographic expansion: Chennai (Tamil and Malayalam movies) and Kolkata completed  Digital distribution of content being actively considered  Metamorphose analogue processing lab into a digital lab  Intend to build high quality studio infrastructure  Enhance footprint to cover end-to-end production services Services : The Path Ahead

20. 20 Content Production and Distribution

21. 21  Successful track record: Bluffmaster, Apaharan, Taxi 9211, Nishabd, Namastey London etc.  Tie-ups with established directors in the industry  Strong line up of 6-8 films to be released across different genres every year  Co-production with MTV to produce youth centric movies  Co-production with Hyde Park to produce Hollywood films  Strong international and domestic distribution set up: prestigious movies released – Krrish, Baabul, Janeman, Vivah, Guru etc.  A portfolio approach: financial limits on movie risk Content Creation : Movies

22. 22 Television  Majority ownership in Siddhartha Basu’s Synergy Communications  Track record of highly successful shows : Mastermind, Jhalak Dikhhla Jaa, Kaun Banega Crorepati etc.  Leverage strengths of pedigree, track record and scale to provide quality content  Building expertise in the kids, lifestyle and fiction genres Animation  Entry into the segment with two prestigious projects  Tamil/ English project featuring Rajinikanth  Movie around a well known kids’ brand – Gini and Jony Content Creation : Television and Animation

23. 23  Largest FM radio network – launching 45 stations across India  Take FM radio as a medium of entertainment into virgin markets beyond metros  Has capacity to touch every fifth Indian across the country, every third urban Indian and every eight Indian in rural India  Value pick in terms of cost per license: Rs 3 crore per license (USD 670,000)  Over 13 stations launched  Initial consumer feedback encouraging  In the process of being demerged from Adlabs Films Big FM

24. 24 Reliance Communication  Largest wireless operator in India with 30 million subscribers  Over 80,000 route-km of optic fiber network implemented Reliance Capital  Ranks among the top 3 private sector financial services and banking companies  Reliance mutual fund has a presence in over 115 cities in the country and an investor base of over 3.1 million Reliance Energy  Distributes more than 21 billion units of electricity  Serving over 25 million consumers in Mumbai, Delhi, Orissa and Goa Reliance – ADA Group

25. 25 Never a dull moment

26. 26 Contacts Manmohan Shetty, Chairman & Managing Director, Adlabs manmohan.shetty@adlabsfilms.com Pooja Shetty, Wholetime Director, Adlabs pooja.shetty@adlabsfilms.com Anil Arjun, Senior Vice President, Reliance Capital anil.arjun@relianceada.com Venkat Devarajan, Chief Financial Officer, Adlabs venkat.devarajan@adlabsfilms.com Our website : www.adlabsfilms.com