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1 BABA Project Roma

2 Aeon Digital BABA Program - Meeting Presentation November 27, 2006

3 Aeon Digital is a leading IPTV company Aeon is successful in acquiring top content Aeon created an end-to-end content solution Aeon establishing its worldwide network. Founded in 2002.

4 Aeon Digital Entertainment Milestones Aeon was the first to license: 1. Music on demand specifically for living room 2. Movies directly to non-pc device using Internet 3. Major studio content for Internet to Set-Top-Box distribution in USA & Canada (Universal Studios) Bill Gates Demonstated Aeon Set-Top-Box to show future of Windows Media

5 Opportunity Summary Media distribution is undergoing a fundamental shift Key Drivers: Broadband services are widely available and penetration is high Media consumption is transitioning to a file based viewing paradigm Consumer electronics are increasingly a part of the home network that creates new markets around IP aware CE devices Thousands of Units Worldwide Shipments of Network Enabled Consumer Electronics Devices Source isuppli Corporation

6 IP Services Attracting Major Investments Starting Up IP Services can be EXPENSIVE TiVo has lost 450 MM introducing DVR device Vonage has lost 500+ MM acquiring 2 MM subs Major US Telcos Spent 400+ MM to reach trials

7 IP-Based Services Attracting Major Players Major Companies are Moving Into Market: Consumer Electronics Are Slowly Following Apple Microsoft and Intel Seeking to Keep IPTV on PC XBox and PS3 are Trojan Horses in Living Room

8 Aeon s Triple Play Value Proposition Provide Telcos a Cost Effective Solution Enable Fast Time To Market for Services Scalable Backend and Business Models Modular Architecture for Partnerships Leadership in Content and Equipment

9 Aeon Digital Global Network

10 Aeon Digital Platforms

11 Leading Content Rights Blockbuster U.S. Movies Major U.S. Network TV shows 2.5 million Music Songs Worldwide Movie/ TV Catalog Sports and Live Events

12 Aeon s Content Services Strategy Focus on high value on-demand offerings Provide attractive subscription services Create targeted advertising opporutnities

13 Aeon Digital Network Content Services Streaming Content Downloadable Content Content Extended to Devices

14 Aeon Global VoIP Services Overview: Fully Functioning Global VoIP Network Consumers Can Call Anywhere At Low Rates Box to Box Calling is Free to Subscribers Flexible Consumer Pricing for Telco Partners Current Architecture: VoIP sits outside of telco network Consumers use Aeon VoIP adapter Future Architecture: Services accessed through Senko global PON

15 Aeon s End-To-End IPTV Solution Set-Top-Box and VoIP ATA for access to services Servers to acquire, manage and deliver content Subscriber and content management systems Encoders for acquisition and real time encoding Multi-platform download to device capability

16 Aeon s Digital Media Value Chain Backend Systems Telco Infrastructure User Experience Components Combine into Total Solution

17 Backend Systems Encoding Systems Secure Billing Data VoIP SIP Servers Media Usage and Transactions Master Customer Record Asset Management System Content Management System

18 Telco Infrastructure OLT Residential PON Telco Access Network PON SERVICES NO LIMIT ADSL Residential DSL ADSL LIMITED SERVICES

19 Telco Infrastructure

20 User Experience Digital Camera Portable Media Mobile Phone Router PSTN Phone Modem Set Top Box Home Computer Television

21 Aeon Creates Value for Our Partners: Aeon Content Rights Revenue Sharing Services Expertise Content Acquisition Expertise Hollywood Relationships Visionary Reputation Revenue Advertising Premium Downloads Subscriptions Services Consumer Experience Service Management Video Operations

22 Aeon Will Provide Content Expertise: Media industry relationships and knowledge Access to Aeon s worldwide content network US studios US TV networks Music companies Multi-Country Content Deal negotiation for rights for local content rights

23 Revenue Generation Drivers Application Incremental Access High Speed Access Current Short Term Long Term

24 Sources of Revenue Premium Purchases Subscriptions Advertising Consumer Device Sales

25 Aeon Worldwide Network Content Model Access great content from across the world Syndicate local content to other countries Access live events, concerts and sports Multi-lingual content and localized movies

26 Featured Partner Global Distribution Please contact: Frank Jaffer Managing Director, Global Angie Scott Manager, Southern Europe

27 Aeon Telco Services Roadmap On-Demand and Subscriptions Advertising Based Channels Future Evolution of IPTV Profitably acquire subscribers of future together

28 Aeon Investment Content Rights Licensing Fees For Legal Contents Post Production Studio Facilities Content Ingest and Digital Asset Management Servers for content delivery Managing Student Portal Creating Proprietary Content Advertising Sales Staff Local staff salaries Telco Partner Investment Hosting of Aeon Infrastructure Technical integration with network and any telco services Bandwidth for Content Delivery Integrating Aeon site into subscriber access portal

29 Joint Venture Model Outline Aeon Global Staff Global Content Rights Negotiation Oversight Global Content Management Business Rules, Digital Assets, and Workflow Core Service Development and International Deployment Capabilities Aeon In-Country Staff Creating Proprietary Content for Network General In-Country Content Negotiations Research & Development/ Technical Operations/ Architecture Service/ Experience Development Technical operations for Aeon Services Localization of Content Telco Management and Technical Personnel Next Generation Architecture Design Network Operations and OSS\ BSS Systems Integration Subscriber Marketing and Local Expertise

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