ITN Networks Combined Company Synergies June 19 2008

ITN Networks Combined Company Synergies June 19, 2008

Combined Company Vision The Aggregation Model for a Media Company is Emerging as the Most Important Development for Future Ad Revenue Growth and Profitability. Key Developments: • Aggregation across broadcast and cable television, plus emerging platforms, is increasingly valued by ad agencies for its ease-of-use to re-assemble mass audience reach in a rapidly fragmenting media landscape. • Major television networks are expanding the distribution of their content outside-of-home, to offer packages of nationally aggregated audience. • The Nielsen Company is employing new technologies to expand the ability of their National People Meter samples to measure and support aggregation across all television and emerging media platforms. The Industry is Ripening for Aggregation To Succeed, Media Companies Must Evolve to Develop New Business Models and Infrastructures that Best Support Expanded Aggregation.

Combined Company Vision A New Multi-Platform Media Company A New Model Combines: • The Cachet of a Media Company’s Unique Content & Distribution Assets with the • Scale and Targeting Power of Aggregation Beyond the Limitations of a Media Company’s Assets

ITN Background • ITN is the leading provider of aggregated national networks in the television industry, with a 97% share of the aggregated or “unwired” network category. • ITN has established affiliations with over 600 U. S. broadcast television stations, major satellite providers, and various regional & local cable channels, to access local TV station inventory across any program or daypart target • ITN offers national networks across most network dayparts, plus options that are otherwise unavailable in the national television market, including local newscasts, and custom consumer targets, such as “Moms”, Full-Time Working Women, and “Enthusiasts” of beauty, fashion, fitness, pets, and many more. • ITN has developed a strong infrastructure of proprietary software and networking systems, exclusive research and historical data, mature station relationships for dependable & efficient inventory bases, and a talented staff of senior management. • ITN is uniquely established with the Nielsen Company to provide advertisers the identical audience metrics, timing and reporting capabilities as all national media choices, with a level of accountability that exceeds all industry standards. • ITN is actively expanding its Online Division, assembling a significant distribution network of local media websites and a full-service internal infrastructure.

Value Proposition Upon Acquisition of ITN, The Combined Company Creates a New Syndication Market Leader: • #1 or #2 in Total Ad Revenue • #1 in Total Viewers Reached • #1 in Program and Daypart Diversity • #1 in Consumer Targeting Ability • #1 in Market-by-Market Flexibility • The Only Syndicated Program Seller Offering: News Network Dayparts Consumer Targets • The Only Syndicated Program Distributor Providing Stations Both Program Content and Ad Revenue The Combined Company Creates Immediate Synergies, and is Uniquely Positioned Today and for the Future to: • Increase Revenue and Profitability • Leverage Stronger Station Relationships • Establish Clear Competitive Advantages • Strengthen Client & Agency Partnerships • Expand Monetize Assets Across Platforms • Create Greater Market Value

Immediate Synergies Revenue Growth In Television, Sony + ITN Creates Strong Synergies for Revenue Growth, as Both Companies Will Generate More Ad Sales Together versus Apart ITN Provides Sony with Strong Upfront Sales in News and Network Dayparts, plus More Inventory in “Top Tier” Programming: High-in-Demand at Premium Prices. These Strong ITN Program Additions will be Immediately and Effectively Leveraged to Drive Larger Packages Across Sony’s Syndicated Program Offerings. Sony Provides ITN with the Valuable “Sony” Name, plus for the first time, ITN’s “Aggregated” National Networks Could Be Sold in Combination with More Traditional Syndicated and Original Content. The Addition of Sony to ITN Immediately Elevates The Status of ITN Throughout the Media Industry. See Examples of Packaged Sales Synergies on the

Immediate Synergies Profitability Sony + ITN Creates Strong Synergies for Increased Profitability, as Both Companies Will Generate Higher Profit Margins Together versus Apart ITN Has No Inventory Risk ITN accepts national sales orders pre-determined to yield the highest possible profit margins, and purchases locally only the commercial inventory required to fulfill those orders. ITN Absorbs Sony’s National Inventory Risk In periods of market softness, some national inventory in Sony’s Syndicated programs may go unsold, most likely occurring in Sony’s lower rated program offerings. Such inventory can be incorporated into ITN’s aggregated networks, already sold upfront, likely at higher national CPMs as part of broader program packages that include mid- and toptier programming. • ITN gains access to commercial inventory it would otherwise be required to purchase locally, and ITN is able to cancel pre-bought local inventory from later flight weeks. • Sony maintains CPM integrity in the market, as opposed to offering last-minute unsold inventory at lower CPMs, or commoditizing such inventory in ad auctions. • Sony turns inventory that otherwise would have gone unsold into highly profitable inventory. Sony + ITN Creates Stronger, More Profitable CPM Leverage • More “Top Tier” Program Offerings Leveraged to Generate Higher, More Profitable Sales CPMs • Increased Stations’ Dependency Leveraged to Generate Lower, More Profitable Cost CPMs

Immediate Synergies Broadcast Television Distribution Sony + ITN Provides Greater Flexibility for Sony to Distribute Programs, or Sell Hardware to Stations More Effectively • Sony can make more attractive offers to stations by accepting Local Inventory banks across news or other programs, as partial terms for purchasing Sony programming or hardware. • ITN can monetize Local Inventory banks at full value across all 52 weeks each year, by incorporating the inventory into ITN’s aggregated networks sold in the upfront market.

Cable & Digital TV Expansion of ITN’s Reach, Relationships, and Aggregation Model Beyond Broadcast, to Cable and Digital Television Platforms • ITN currently provides ad revenue directly to participating national cable networks, regional & local cable stations, major satellite providers, and to Google, aggregating the inventory in national networks anchored by broadcast television stations. • ITN is currently working with the Nielsen Company and Comcast to measure local cable inventory from MSOs through Nielsen’s National People Meters. • ITN is currently working with Comcast and “Project Canoe” to explore advanced television features, such as interactivity, addressability, and dynamic ad insertion. How ITN Assists Sony’s Expansion in Cable and Digital Television • ITN can incorporate and monetize unsold national inventory from Sony’s cable/digital programs & networks into aggregated national networks at higher broadcast CPMs. • Sony may seek to expand carriage of current and new cable networks across MSOs, by accepting MSO or regional head-end time banks across Sony’s cable networks, or across multiple other cable networks, as partial terms for increased carriage. ITN would then monetize these time banks at full value in larger aggregated networks* *Dependent upon ITN’s success with the Nielsen Company to measure, as outlined above

Proposed New Ventures Expanding the New Sony + ITN Model to Succeed in the Network Television Market Emerging Market Dynamics ØSignificant Ratings Erosion Across All Broadcast Television Networks ØFailures of CW and My Network to Establish the “ 5 th Network” ØCW’s Exit from Sunday Nights Next Season 4 Q’ 08 -3 Q’ 09 Media Rights Capital (founded in 2004) purchased the rights to Sunday nights across CW affiliates to distribute their producers’ content (Reality Shows, Sitcoms) • Annual Deal is Estimated at $10 -$15 million ØDemand Outpaces Supply of Broadcast Ratings & Primetime Cachet Networks Continue to Experience Successful Upfront & Scatter Market Increases Beyond Next Season ØSpeculation that CW & MYN may cease to exist beyond 2009 ØNew Opportunities will Emerge for Media Companies to Distribute and Sell Programs in Broadcast Primetime

Proposed New Ventures Expanding the New Sony + ITN Model to Succeed in the Network Television Market CW and My Network and Potential Newcomers Old Network Model Failures New Network Model Success Launching with 3 -5 Nights of Original Programs, Exclusively in Prime Launching with 3 -5 Nights of Original Programs in Prime, Supported with Aggregated & Syndication Offerings ØHigh Risk of Original Content Production ØNo Supporting Dayparts to Leverage Larger, Total Network Packages ØBring Too Few National GRPs to the Market ØLack Targeting Strength on Key Demographics ØLittle Importance to Ad Agencies ØStations are Minimally Tied to the Success of The New Network Effort ØReduces the Risk of Original Content Production ØProvides News and Network Dayarts to Leverage Larger Network Packages at No Additional Risk ØCreates Significantly More National GRPs ØCustom Aggregated Additions Can Increase Targeting Strength on Any Key Demographic ØEstablishes Greater Importance to Ad Agencies ØStations are Directly Tied to the Success of the Network Effort for both Content and Ad Revenue The Opportunity Exists for Sony + ITN to Create the New Model “ 5 th Network”

Clear Competitive Advantages At a time when the Aggregation Model is becoming most important, ITN provides Sony with the full infrastructure to develop a new business model that is best positioned for success today and in the future. Sony + ITN creates a unique company in terms of leveraging advertising sales and station relationships, expanding across platforms, and limiting competitors’ abilities to react. • Syndication competitors can always expand or acquire another Syndication provider, but they can’t duplicate or acquire another ITN • Advertisers can always go to another Syndication provider to purchase more Syndicated shows, but they can’t go elsewhere to purchase another ITN • At Stations, Sony + ITN becomes a significantly more important part of their livelihood, as the combined company provides content and hardware, plus sizeable and consistent advertising revenues across television and online

Summary of Synergies Leverage $$ Expand Use of Inventory Increase Stations’ Dependency Premium Syndication Clearances & Online Inventory Television Stations Move to the Front of The Line Create “ 5 th Network” With Expand Distribution Networks & Sales with Original Integrate Prime Content On-Air & Online Components Become A Content Provider On-Air & Online Create & Deliver A Unique National Video Model Agencies & Clients Expand Use of Programs to News & Network Dayparts Leverage Upfront Deals News & Network Dayparts With Syndicated Programs