a New Way to Play, to Record and to Distribute your Music

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1

2 Scenario

3 Mission is. Mp3 a New Way to Play, to Record and to Distribute your Music

4 Today Company Activity

5 Company Activity & Tomorrow whit our technolgy MUSIC WILL BECOME A PRIVILEGE FOR ALL OF US MIPP Music Internet Portable Producer EVERY ONE WILL CREATE AND DISTRIBUTE HIS MUSIC

6 Company Activity MIPP Music Internet Portable Producer means NO PC N O M U S I C A L I N S T R U M E N T S NO TECHNICAL SKILLS GREAT E A SE T O U S E W E B I N T E R A C T I V I T Y T O P L A Y T O P A U D I O Q U A L I T Y M p 3 P L A Y E R

7

8 We sell the dream

9 From the creativity to the web Without eband Project/Idea With eband Project/Idea TAPE/PC PC RECORDING STUDIO RECORDING STUDIO PC WEB DESIGNER PC Demo Pre-production Recording Mastering Mp3 file WEB page On - line eband Music on the WEB Music on the WEB

10 The Business Model The offer: Integrated systems MIPP On-line services On-line sound bank The target: MUSICIANS - Step 1 - digital oriented - Step 2 - not today digital oriented NON MUSICIANS - that dream to create their own music Sales Channels: B2C WEB Direct Marketing BAND POINT expo and information no stock revenue on business generated Revenue: Products On-line activities

11 Target Countries Italy U.K. Germany France Spain Benelux Scandinavia Geo Market Target

12 Competitors Today None. (only a few non-professional localized systems in the USA with no specific provision for WEB interactivity) We are aware the market is moving. but we know as well that we are AHEAD of the competition

13 Market Potential We estimate the potential market for the next three years in approximately: 8 million EU people

14 Market Potential 52 mln people eband integrated systems 10 mln people eband 0,2mln people Musicians PRO musicians Digital oriented Target 3,9 mln people (Disma, Ispo, Istat, Mkt Research, Census.gov, Ipsos-explorer)

15 Market Potential eband MIPP 52 mln people 25,6 mln people Musicians Non pro musicians Web oriented Target eband 1,2 mln people 4,2 mln people (Disma, Ispo, Istat, Mkt Research, Census.gov, Ipsos-explorer)

16 KEY FINANCIALS euro/mln FY 1 FY 2 FY 3 Sales % % % G.P % % % E.B.T. (8.520) -14% % % Employee

17 Revenue mix 100% Integrated sistems Internet Portable Music Producer On-line activities Revenue FY1 FY2 FY3 FY4 FY5

18 Strategy On-line activities SOUND BANK DOCTOR CHECK TUTORIALS ON LINE ASSISTANCE WEB SESSION GO ON THE WEB!

19 Strategy & Competitive Advantages FIRST IN THE MRKT COMPETITIVE ADVANTAGES KNOW-HOW & MANAGEMENT STRATEGIC ALLIANCES HIGH TECHNOLOGY POSITIONING CONSOLIDATION NEW PRODUCTS BRAND FAME / BRAND FIDELITY NEW MARKET BRAND FAME OPINION MAKERS WEB COMMUNITY FY1 FY2 FY3

20 AC (42) KEY PEOPLE MANAGING DIRECTOR 68/69 ELKA (Musical Instruments) Admin Manager - Managing Director 90/93 ROLAND SPA Managing Director from 93 SYNCRO SPA (M.I. Distributor) Managing Director from 96 KORG SPA Chairman C.E.O. RS (33) PROJECT MANAGER 89/93 CD VIDEOSUONO Sole Rep 93/96 SYNCRO SPA Area Manager from 96 SYMEDIA Chairman from 97 KORG.NET Project Manager JS (48) R & D MANAGER 68/72 INDIPENDENT(M.I. Worker) Rock Group Leader 79/83 REALTON (R&D M.I.) Owner 86/89 GENERAL MUSIC (M.I.) Project Manager from 96 KORG SPA R&D Manager

21 EB (24) KEY PEOPLE SALES MANAGER 91/96 GOLD LAMINA (Silver Plated) Sales Responsable 96/97 SYMEDIA Sales Manager from 97 KORG.NET Brand Manager FP (46) MARKETING MANAGER 89/93 CD VIDEOSUONO Salkes Manager 93/96 SYNCRO SPA Marketing Manager from 96 SYNOVA Chairman from 98 KORG SPA Director GDT (35) e-communication 93 FESTIVAL FILM VARESE Winner 93 FESTIVAL FILM LISBONA Winner 96 FESTIVAL DE L ART MONTREAL Short List CLIENTS: SWATCH SMH, iguzzini, CLEMENTONI, DOCKSTEPS. DG (37) Advisor Studio Grandoni Nardoni & Associati Srl - Business Consultants Correspondent Reconta Ernst & Young for Marche Region (Italy)

22 The TEAM The right TEAM to win this challenge

23 Strategic Alliances Existing MP3 EU Distribution platform Musical SW s Supplier HW s Suppliers Audio Loops Supplier

24 Strategic Alliances Under negotiation International TelCompany Web Provider EU Radio Network EU Video Network

25 Exit of VC 1 st STEP IPO 2 nd STEP Sell to one of the Major

26 Contact: Mr. Renato Spina Fax Castelfidardo (AN) Italy

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