SoMedia Networks Inc. Disclaimer:

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2 SoMedia Networks Inc. Disclaimer: The Presentation has been prepared by SoMedia Networks Inc., using its best efforts to realistically and factually present the information contained. However, subjective opinion, dependence upon factors outside SoMedia Networks Inc. s control and outside information sources unavoidably dictate that SoMedia Networks Inc. cannot warrant the information contained to be exhaustive, complete or sufficient. In addition, many factors can affect us which could significantly alter the results intended by SoMedia Networks Inc., rendering the information/ projections in the Presentation unattainable or substantially altered. Therefore, persons who view this Presentation ( Users ) should conduct their own assessment and consult with their own professional advisors prior to making any investment decisions. This Presentation does not constitute a prospectus or public offering for financing, and no guarantees are made or implied with regard to the success of SoMedia Networks Inc. s products, services, methods, systems or approaches. The Presentation is being disclosed to User for User s discussion, review, and/or evaluation only. User agrees to hold the Presentation, and all related information and discussions, in strict confidence, except that User may disclose the Presentation to a limited number of advisors and employees to the extent necessary for User to adequately evaluate the Presentation. User warrants that any such persons shall be advised of the confidential nature of the Presentation before gaining access to the same and that no such advisor or employee shall use or disclose the Presentation except for the purpose of advising the User. User agrees that SoMedia Networks Inc. reserves all rights in and to the Presentation. User agrees to return all originals and all copies of all materials related to SoMedia Networks Inc. upon request or upon the conclusion of User s review and evaluation of the Presentation thereof, whichever is earlier. TSXV:VID Disclaimer - 2

3 Addressing SoMedia Networks: the need for video Cloud Based B2B Video Production, Marketing and Analytics Combining the power of cloud computing and automated SaaS technology to simplify and scale a traditionally complicated process Create videos in unlimited volume and scale anywhere in North America Disruptive economics: A fraction of the cost of traditional video production Market entry and sales growth phase of development with 500% growth in reseller signups over the last 12 months resellers signed to date. Growing market demand. First mover. No direct competition. Rapid growth. TSXV:VID SoMedia Networks 3

4 Industry Leading Video Solutions: Integrated Platforms: Production, Project Management, Video Players & Analytics Order a broadcast ready video: Performance and engagement Build your own video: Customized branded Project and campaign management tools. TSXV:VID Industry Leading Video Solutions 4

5 Addressing About SoMedia the Networks: need for video About SoMedia Networks Founded in 2006 $12+ million invested in technologies and platforms before going public through an IPO in June Staff - 25 in sales and marketing Over 4000 resellers signed to date Over 3500 vetted video production professionals across North America Significant barriers to entry created. No direct competition. First mover. TSXV:VID About SoMedia Networks 5

6 Video is Critical to Success on the Web: Annual Spending on business video production (millions) $9,000 $7,200 $5,400 $3,600 $1,800 $ (Interactive Media Strategies) TSXV:VID Video is Critical to Success on the Web 6

7 Business Demand for Video: Business Demand for Video 7

8 The Video problem Challenge: with traditional video production It s expensive Difficult to produce in volume Not geographically scalable Hands on creative process Difficult to resell Video production is complicated. TSXV:VID The Video Challenge 8

9 Re-engineering Video Production: VIEW DEMO Cloud Computing & SaaS Technology + Process Engineering + CrowdSourced Workforce Video as a standardized business product available anywhere in unlimited volume at the lowest price. First and only turnkey solution for reselling video production TSXV:VID Re-engineering Video Production 9

10 Re-imagining Video Production: VIEW DEMO Cloud Computing + Advanced Video Animation Technologies + Automated Processes Video as a low-cost, SaaS business product. Customized videos created by users or database through an online platform. 1 LAUNCH OUR ONLINE PLATFORM TSXV:VID 2 CHOOSE A TEMPLATE & CUSTOMIZE FONTS, COLORS, MUSIC 3 ADD YOUR CONTENT AND PHOTOS 4 PRODUCTION COSTS = PENNIES per VIDEO VIDEO IS CONSTRUCTED BY SAAS ANIMATION ENGINE Re-imagining Video Production 10

11 Samples of what we do: Scalable Video: Automated Video: What we do 11

12 Video Marketing and Campaign Management: Customizable video player with enhanced campaign and targeting features. Coupons Branding Lead capture forms Google Maps Custom content Video gallery Social Media Customized colors Brandable and customizable videoplayer offers advanced audience targeting across any platform or device, plus sophisticated campaign management features. Call-to-action TSXV:VID Video Marketing and Campaign Management 12

13 Video Engagement and ROI Measurement Video data and engagement behavior analytics package. Video campaign performance, ROI analysis and data by specific video or by campaign Detailed social media sharing data Analytics by player, device, embed location within site or multisite, geography, or by use TSXV:VID Video Engagement and ROI 13

14 Attacking Multiple Verticals: Focused Solutions for Verticals Vertical specific video production combined with customizable video player, project management tools, and robust analytics. CURRENT MARKET: THE WEB SERVICES VERTICAL FUTURE MARKETS: SPECIFIC TEMPLATES FOR OTHER INDUSTRY VERTICALS RESELLER CHANNEL Web design and development services, search engine marketing, advertising agencies, marketing consultants AUTOMOTIVE REAL ESTATE ENTERPRISE CHANNEL Large digital agencies and corporate partners OTHER LANGUAGES TSXV:VID Multiple Verticals 14

15 The Web Services Opportunity: Web Services Sector Provides Internet Marketing Services: Web Design & Development Services, Website Hosting, Search Engine Marketing, Advertising Agencies, Marketing Consultants, Digital Agencies. 9.2 million of the 27 million SMBs in the US plan to spend on video in 2013.Adology Small Business Marketing Forecast ,000+ WEB SERVICES COMPANIES IN CANADA 76,000+ WEB SERVICES COMPANIES IN THE UNITED STATES A large fragmented market providing internet marketing services to: 27 MILLION SMBS 2 MILLION SMBS 19 MILLION SMBS TSXV:VID Our Markets 15

16 Delivering Reseller Success: Over 4,000 partners signed by October representing more than 100,000 SMB clients. Added more than 300 new partners per month ,000 4, OCTOBER TSXV:VID The Web Services Vertical: Reseller Signups 16

17 The Web Reseller Services Reseller Channel: Sales Model: Step 1: Step 2: Step 3: Reseller Signup Marketing Implementation First Sale 2nd + Sale Repeat Reseller DAYS + 90 DAYS Percentage of calls that sign up as partner: JANUARY 29% FEBRUARY 47% MARCH 46% APRIL 51% Partners converted into first time resellers: JUNE 4% JULY 11% AUGUST 15% SEPTEMBER 18% Currently more than 20% of resellers are recurring Average value of a recurring reseller is $6,600 Optimizing Now Optimizing Q1 TSXV:VID The Web Services Sales Model 17

18 Enterprise Sales: Enterprise Partner Portal For corporate partners, large digital agencies and web services companies. Project & campaign management. Logistics. N.A. wide production services. corporate partners ORDERING AND PROJECT COSTING DETAILED PROJECT STATUS TRACKING AND LOGISTICS PROJECT MANAGEMENT CONTROLS TSXV:VID Enterprise Model 18

19 News Production Platform: On Demand News Services SoMedia News is the evolution of the cloud-based ScalableVideo platform, providing professional news content production with national and international reach N.A. wide production capability. Ideally suited for interview clips, footage, video press releases, content, web and broadcast news. Launched during the 2010 Vancouver Olympics Produced content for: TSXV:VID News Production 19

20 Progressive Leadership: George Fleming - Founder & CEO 15 years experience as an internet Founder or Co-Founder. CEO & Founder of One Person Health (HealthPricer.com), Co-Founder of echarge Corp. Prior to that at Canaccord Capital Ben Pickering - President & COO 15 years experience in the online media and software industries. CEO of Strutta, senior roles at Yahoo. Named a Top 40 Digital Strategist by the Online Marketing Institute, MBA from Stanford University. Rick Schultz CGA - CFO 12 years accounting management experience; involved in the preparation of two IPOs. Tactical Corporation, Taleo Corporation, Pivotal Corporation. Amir Mirhosseini - CTO & Co-Founder Highly innovative technology architect & programmer. Graduated with a BSc and Masters (incomplete) in Computer Science from UBC. Colin Osing - Vice President, Marketing Former head of marketing at Canpages Inc. (IYP) with 15 years experience selling digital marketing solutions to SMBs and agencies. Lance Montgomery - Vice President, Business Development 14 years experience in Account Management and Business development. Most recently head of Business Development at Reward Stream. DAC Group, Inteqna, Ajilon. Management Team 20

21 Competition: TSXV:VID The Competition 21

22 Capital structure: Summary of Capital Structure Classification # shares Percentage Issued shares 26,673, % Warrants 4,617, % Convertible Debt 1,057, % Warrants from convertible debt 90, % Total fully diluted 32,438, % Management & Consultants Amount Percentage Board of Directors 10,285,678 32% Held by insiders 2,616,097 8% Total 12,901,775 40% Total Funds Raised to date $16+ million Difference Capital is an investor and advisor Proceeds of current financing to fund continued growth in web services and enterprise partner acquisition, launch of new verticals, new product development. TSXV:VID Capital Structure 22

23 Highlights: High growth, high margin business model with no direct competition Technologies are built. Sales and partner acquisition model is tested and scaling now resellers signed to date. 500% growth over the last year Significant revenue growth potential through expansion into verticals, automated video technologies, and enterprise partnerships Experienced management; operational and financial markets Mark Robertson, ReelSEO It is my sincere opinion that the SoMedia production platform is a game-changer for the industry. TSXV:VID Highlights 23

24 Contact: Investor Relations ext 501 TSXV:VID Contact 24

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