Creating a New Age of Television

Sezmi Creates Many Television Firsts

1. A complete TV 2.0 solution

2. Centered on on-demand viewing

3. A seamless integration of live, stored, on-demand, and internet video

4. Personalized and tailored to the individual viewer

5. Extends the benefits of social networking to the TV

6. Designed for self-installation

Major Disruptions in the TV Industry: A Catalyst for Consumer Change70 million consumers will make Digital TV choice over the next 4 years

DVR

HDTV

TriplePlay

DigitalTransition

InternetContent

MobileVideo

Inflexible bundles

Too expensive

Difficulty making

everything work together

Inconvenient start times

Movie selection

(on-demand)

Can’t find something of interest to watch

Poor navigation

and usability

The picture quality does not meet my expectations

Complaints Include High Prices, Inflexible Bundles and a Poor Experience

Value is critical

Opportunity to improve the experience

Simplicity is key

Upgrade to HD

A Large Set of Target Consumers

Total Households

Analog Cable Subs 34MM

New Move-ins 17MM

Broadband Subs without Triple Play 30MM

New HD TV Set Purchasers (annually) 17MM

OTA only Households (39.2MM TV sets) 20MM

Cable or Satellite Subs with OTA TV Sets (30MM TV sets)

15MM

Current Approaches are Not Working

• Broadband is challenged to deliver HD television

‒ Partial solutions are not accepted in the living room

• A pile of special purpose boxes

‒ Cable STB/DVR boxes

‒ Movie boxes

‒ Internet video boxes

• Legacy systems are difficult to upgrade

SimpleSelf-Install

CompellingPricing

RelevantAdvertising

Wireless

Personalizationand

Intelligence

Time Shifting and

On-Demand

ComprehensiveContent

BreakthroughVideo

EntertainmentSolution

Compelling Basic Offering

Digital and HD TV Subscription Low monthly fee

• Content bundle covering > 85% of all TV viewing

‒ All major broadcast networks and local channels

‒ Basic bundle of leading cable networks

‒ Live sports and news networks

• Integrated Internet Video

• HD DVR service

On Demand Choices Market rates

• Movies

• Premium TV

• Adult

A Simple Offering Covers 87% of US TV Viewing

Source: Nielsen HH ratings 2005-2006 TV season

Premium

Content &

Movies

% o

f T

V V

iew

ing

ABC, NBC, CBS, FOX,

Univision, Telemundo, My

Network, CW, Telefutura,

other independents

53%

0%

34%

36 Leading Networks

Niche

Networks

Broadcast

Networks

Base Offering (87% of TV viewing) Supplemental Offerings

7%

Internet

Video

Sezmi Creates a New Delivery Paradigm

PublicBroadcast

Media Receiver•Smart reception•Automatically stores nearly 1,000 hours of personalized programming

Digital TV Spectrum

Video Content

Interactivity and Viewer Data

Internet Video

Broadcast Networks

Secure Broadband

PrivateBroadcast

Network Ops CtrLicensed Content

FlexCast

Building B, Inc. Confidential - Not for Redistribution

Partner

IP POP

Sezmi Sets a New Benchmark in Simplicity

Personalized and intuitiveUser Interface

RemoteUnique scroll wheel design

Individual user buttons

Digital Media Receiver

Self-install in minutes

Integrates all services and content

A Strong Foundation

• General

‒ Founded in 2006 by Buno Pati and Phil Wiser

‒ Headquarters in Silicon Valley with offices in Santa Monica and Florida

• Strong Financial Backers

• Board of Directors

‒ Phil Wiser Chairman and President

‒ Buno Pati CEO

‒ Andy Lack Chairman, SonyBMG; Former President and COO, NBC

‒ Bob Pavey General Partner, Morgenthaler Ventures

‒ Arun Netravali Managing Partner, Omni Capital Group; Former President of AT&T Bell Laboratories

• Industry Leading Advisory Board

‒ Key executives and technology leaders from MTV, Nickleodeon, Paramount, Publicis, ArrayComm, …

Morgenthaler Ventures Omni Capital Index Ventures

TD Fund (FCC) Legend Ventures Western Technology Investments

The Right Management Team

• Founder and CEO, Numerical Tech

• Founder/Director of 8 tech companies

Buno Pati

CEO

• CTO, Sony Corp. of America

• Founder and CTO, Liquid Audio

Phil Wiser

Chairman and President

• VP Marketing, Clearwire

• VP Sales and Mktg, DirecTV Broadband

David Allred

SVP Marketing and Products

• President, Viacom Productions

• EVP Primetime, NBC

Perry Simon

SVP and Chief Content Officer

• COO and Founder, USDTV

• CEO, CacheVision, SkyTune

Richard Johnson

SVP Service Operations

• Exec. Director, CA Public Broadcasting

• President, KSEE (NBC Affiliate), Fresno

Mark Benscheidt

VP Broadcaster Business Dev.

• CTO, USDTV

• Founder and CTO, Metro Link

Garry Paxinos

SVP Engineering

• CFO Picolight

• CFO and cofounder Read-Rite Corp.

Martin Lundie

Chief Financial Officer

Founders

Company Building

Technology

Digital Media

Consumer

Content

Network and Operations

Broadcast

Technology

Finance

Sezmi Helps Partners Capitalize on a New Chapter of Consumer Video

ContentProviders

BroadbandService Providers

Advertisers

Broadcasters

Broadcasters:

Receive returns on their digital investment

Revitalize their business with targeted and interactive ads

Advertisers:

Deliver higher value advertising on television

Improve the effectiveness of advertising

Broadband Service Providers:

Offer a differentiated triple play

Avoid expensive infrastructure

Promote their brand

Content Providers:

Extend content to new platforms

Leverage brand in an on-demand world

Building Value for Broadcasters Building Value for Content Providers

Higher CPMs

Growing Subscriber Base

Increased Sub Fees

Enhanced BrandYour

Brand

Subscriber Revenue Share

Smart Promotion

Stronger Local Franchise

Higher CPM’s

Differentiated video services

High-capacity wirelessnetwork for content delivery

+ =

Service Providers

DSL and 4G Wireless

Voice & data services

Marketing & distribution

Sezmi is A Turn-key Video Solution

Triple Play

Nationwide Distribution Network

• Wireless Broadband Providers• Regional Telephone Providers• National Retailers

100 Million Households Passed by 2010

Creating a New Age of Television