Proprietary and Confidential0. 1 Agenda I.Company Overview II.Market Environment and Position III.Product Portfolio A.PureVideo Editorial Overview B.GrindTV.com.

Proprietary and Confidential 1


Agenda

I. Company Overview

II. Market Environment and Position

III. Product Portfolio

A. PureVideo Editorial Overview

B. GrindTV.com

C. HollywoodUpClose.com

D. StupidVideos.com

E. PureVideo.com

F. Sales & Technology

IV. Growth Strategy

V. Summary Financials and Wrap-Up


Company Overview

• Digital media business dedicated to the creation, discovery and promotion of video content over IP delivery platforms

• Leverage compelling content (UGC, original, licensed), robust publishing and IT platforms and proprietary video search technology to operate a network of Branded Online Destinations (“BOD”s)


Key Properties

• Delivering safe, advertising-friendly new media destinations to targeted audiences

• Blend of traditional media best practices with Web 2.0 advantages

Property General Concept

MTV for action sports enthusiasts

Yahoo! Music for celebrity and entertainment

The Walt Disney Company’s America’s Funniest Home Videos meets MTV’s Jackass

Unbiased political media resource online

Gemstar-TV Guide International’s TV Guide® for the Internet


Business Model

• Each BOD provides the unified context for aggregated video content to simultaneously attract consumers, advertisers and content producers

– Reach highly targeted, engaged and valuable audience

• Monetize the “long tail” of content demand through search

• Self-perpetuating Web 2.0 business with robust community features and cross-promotion to drive organic growth

Content Creation Aggregation & Context Revenue Generation

User-Generated

Original Content

Licensed Content

Advertising (video, display, sponsorship, etc.)

Content Licensing (online media, mobile, television, DVD, etc.)

Search Revenue (pay-per-click)

Subscription (premium services)

sports

travel, etc.

comedy celebrity

Other Verticals

politics


Our Competitive Differentiation

• PureVideo offers a sustainable, differentiated and defensible business that simultaneously attracts consumers, advertisers and content producers

Differentiation Others

Monetization of Channels Editorial integrity

Quality programming around a targeted lifestyle, interest or audience

Focus on stream volume irrespective of quality and / or revenue capability

Unstructured video repositories

Proprietary Search Utility Identify and develop new verticals faster and cheaper (business intelligence)

Drive organic traffic

New revenue stream

No clear business purpose or model

Inferior technology

High-Quality Content Advertising-friendly, “PG-13” content

Avoids indecent content that skews traffic near-term but hurts business long-term

Minimal editorial integrity

Traffic figures inflated by “questionable” content

Scalable Technology Proprietary, centralized CMS system

Scalable and flexible architecture

More engineers than PureVideo employed to run one website


2005 2006 2007

Key Milestones and Accomplishments

Jan. ’06: Launch of StupidVideos 2.0

Feb. ’06: MSN ad partnership begins

Jul. ’06: Branded ad campaigns for Nissan and Sony PSP

Mar. ’06: Added user profiles and other community features

May. ’06: MSN ad partnership ends

Aug. ’06: Hired Carrie Kelly to lead direct sales effort

Sep. ’06: StupidVideos 3.0 released on new technology platform

Oct. ’06: GrindTV 2.0 released on new platform

Oct. ’06: Launch of PureVideo Search

Dec. ’06: GrindTV and PureVideo join StupidVideos in the comScore top 2000

Dec. ’06: $1.5mm bridge from Softbank

Feb. ’07: Launch of HollywoodUpClose; comScore number grows 45% from previous month to 4.7mm

Nov. ’05: Raised Series A from Sofbank

Nov. ’05: Launch of GrindTV

Apr. ’07: Launch of PoliticsUpClose


Experienced Management Team

• Over 10 years of relevant Internet experience

• Formerly SVP of Product and Strategy at Citysearch (IAC)

• Leading Account Executive for Yahoo! Music

Erik HawkinsCEO

• Over 10 years of relevant Internet experience• Formerly Director of International Product Strategy for Yahoo! Music• Founder of MusicVideos.com (acquired by LAUNCH in 1999 and

ultimately by Yahoo! in 2001)

Greg MorrowPresident and COO

Russ SmithVP of Technology

Carrie KellyVP of Sales

Curtis BeckVP/GM GrindTV

• Formerly VP of Product for Business.com• Developed and patented pay-per-click local search system at

Citysearch/IAC

• Over 10 years of sales experience at top media companies• Formerly VP of Search Sales at Ask.com

• Formerly SVP of Business Development for Cinema Now• Over 7 years of experience in Business Development at Microsoft

Karina KoganVP Marketing

• Over 9 years of relevant Internet experience• Formerly Director of Marketing for evite.com, which grew traffic over

600% during her tenure.


Agenda

I. Company Overview




B. GrindTV.com


D. StupidVideos.com

E. PureVideo.com


IV. Growth Strategy



Online Video Advertising Spending

• Reaches nearly $3 billion in 2010, but still only represents 3.3% of television spending

• Tremendous opportunity to better monetize the “long tail” of the content demand curve

$40 $55 $85 $135 $225$410

$775

$1,300

$2,000

$2,900

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010% of TV Spend 0.1% 0.1% 0.1% 0.2% 0.3% 0.6% 1.1% 1.6% 2.5% 3.3%

Source: eMarketer research, November 2006.

U.S. Online Video Advertising Spending ($ in millions)


Drivers of Growth

• Internet is now the most popular entertainment source among teens and near the top overall

• Advertising spending “gap” expected to close

Media Usages: Ages 12–24 U.S. Ad Spending Per User/Audience Member

2006E U.S. Media Usage

Internet30%

TV24%

Radio21%

Telephone14%

Print Media11%

Avg MinutesMedia per Day

TV 240.9

PC Use (any) 135.8

Internet 93.4

Radio 80.0

Music (incl. MP3) 65.1

Phone (incl. Mobile) 42.2

All Print 32.8

All Video (VCR/DVD) 32.6

Newspapers 12.2

Game Console 11.6

Internet30%

TV24%

Radio21%

Telephone14%

Print Media11%

$2.28 $4.20 $14.80

$88.28 $99.13

$128.57

$253.37 $256.42

$300.01

2006 2007 2010

Online Video Total Internet TV


Market Position

• In one year, we drove our comScore unique user count up 600% to 4.7mm

• We have proven the ability to scale this platform

comScore Unique Visitor Count Top 10 comScore Gainers (1)

0.0

1.0

2.0

3.0

4.0

5.0

Apr-06 May-06 Jul-06 Sep-06 Oct-06 Dec-06 Feb-07

Un

iqu

e V

isit

ors

(m

m)

(1) Source: comScore, February 2007, by percentage change in unique visitors.

PureVideo Network StupidVideos GrindTVPureVideo.com HollywoodUpClose

Jan-07 Feb-07 % Change

Total Internet Population 175,559 175,653 0%

FTD.COM 1,163 3,681 217%

1-800-Flowers 1,679 3,460 106%

NASCAR.COM 2,418 4,679 93%

Alloy 2,920 5,169 77%

123GREETINGS.COM 3,500 6,189 77%

TaxACT 4,057 6,348 56%

Hallmark 5,601 8,608 54%

WEBKINZ.COM 2,858 4,380 53%

PureVideo Network 3,252 4,725 45%

BUY.COM 2,730 3,965 45%

Property


Agenda

I. Company Overview




B. GrindTV.com


D. StupidVideos.com

E. PureVideo.com


IV. Growth Strategy



PureVideo Editorial Integrity

• Harness creative energy of our audience to create valuable content assets that meet our strict programming standards

• All featured content must be contextually appropriate, PG-13 and not a gross violation of copyright

• Four-stage review process:– Deactivated: Violation of PureVideo strict

standards– Approved: Do not yet meet programming

standards; viewable from profile page but no advertising or search access

– Featured: Meet programming standards– Approved for Syndication: Can be licensed

to third parties

• As a result, very low DMCA takedown notice frequency (less than 1 per month, on average)


GrindTV


GrindTV – Overview

• Created for and by “adrenaline junkies”

– In the style of MTV for action sports

• Premiere destination to watch, share and review extreme and action sports videos

• Attracts 2mm monthly visitors and streams over 13mm videos

• Property is gaining strong traction with content partners, advertisers and endemic brands

• Audience is a younger, active, mobile and predominantly male


GrindTV – Features

Grind House

• Original coverage of athletes and events

Category Channels

Image of navigation

• Easy navigation to user interest

Social Networking

• Xxxx• xxxx

Grind to Go

• Share content, personal profile page, etc.

• Original content available for mobile download


• GrindTV has quickly become a recognizable action sports brand that is the online market leader among targeted competitors

comScore Unique Visitors Alexa Ranking

Source: comScore Networks U.S. data as of February 2007; Alexa Internet, Inc. Data for six months through March 15, 2007.

1,354

243 229162 121 89

GrindTV Snow.com FUEL TV PrimediaActionSports

FutureSnow-boarding

Skate-boarding

Un

iqu

e V

isit

ors

(00

0's)

Competitive Positioning – GrindTV


• Dedicated to the world of entertainment, featuring movie trailers, celebrity video clips, red-carpet footage and interviews

• The long tail of the celebrity universe is organized by video and image search

• Launched in beta in February 2006, HUC.com attracted over 2mm visitors in March and over 10M video views

• Successful launch of a search-driven vertical with robust content and advertising partners validates vertical expansion model

HollywoodUpClose.com – Overview


• More Content – Extensive movie trailer and music video collections have been licensed

• Solicit user-generated videos to find the next big star

• Consumer “mash-ups” of popular movie and television content

• Integration of member blogs and other social networking functionality

Upcoming features

HollywoodUpClose.com – Features


StupidVideos.com


StupidVideos.com – Overview

• Humorous, user-generated videos in the style of MTV’s Jackass and Disney’s America’s Funniest Home Videos

• The site has a passionate, retained audience of approximately 2mm monthly unique users who stream over 10 videos a session

• StupidVideos has a healthy content licensing business and is generating licensing revenue from top brands such as MSN, Yahoo, Comcast and Cingular

• Interest from television partners is strong and growing


StupidVideos.com – Features

SV TV

• “Passive” experience to create user stickiness

• Familiar TV-like channel / episode format

Video Series

• Topical series to create consumer loyalty and activity

• Part of programming strategy and website organization

Easy Video Discovery

• Foster content discovery through simple browser tools

• Video filters such as time posted and category

• Upload/share content• Post reviews/comments and

create personal profiles (MySV)

Social Networking


• “As impressive as it is that StupidVideos.com came in sixth in total sessions and seventh in unique visitors, some other metrics show an even more interesting, stickier picture of the site. StupidVideos is the runaway leader in page views per session with a massive 43, which is 74% more than Break.com in second place”

– Andy Kazeniac, Compete.com blog, 02/28/07

Page Views per Session Sessions per Unique Visitor

Source: Compete.com, February 2007.

Competitive Positioning – StupidVideos.com


PureVideo.com – Overview

• Proprietary search utility through which consumers can discover video content on the Internet

• Combines keyword search with a categorized directory– Keyword search leverages

accuracy of a crawl-based search with timeliness of an RSS feed-based search

– Directory organizes video to create a “TV Guide for the Web”

• Proprietary video search indexing to improve upon content relevancy, user experience and monetization opportunities

• We have launched a paid inclusion pilot, and last month began to generate pay-per-click search revenue


PureVideo Search Approach


PureVideo – Features

New Features

• Complete transition to proprietary index• PureVideo page rank (“purity index”)• Automated customer signup and billing

Upcoming features

• My PureVideo • Search Tool Bar• Paid Inclusion Pilot


• Search is Intelligence – We use video search data to focus our channel development and content acquisition efforts

• Search is Content – We use video search to organize the “long tail” and rapidly deploy deep, compelling, and highly-scalable branded online destinations

• Search is Traffic – Search creates organic traffic on PureVideo.com and on the destination sites

• Search is Revenue – An emerging pay-per-click model ensures baseline revenue from ordinary site activity

“Want to know what everyone else is watching on YouTube? Or AOL, or ESPN? Or perhaps you just want to find that hilarious online video ... Well, now you can, at PureVideo. A meta search engine specifically for videos, PureVideo organizes user-generated online video content by combining the accuracy of a crawl-based search with the timeliness of a feed-based search.

“We’ve combined ‘I know what I want to find’ with ‘Tell me what I should watch,’” says Greg Morrow, president and cofounder of PureVideo Networks.”

“Want to know what everyone else is watching on YouTube? Or AOL, or ESPN? Or perhaps you just want to find that hilarious online video ... Well, now you can, at PureVideo. A meta search engine specifically for videos, PureVideo organizes user-generated online video content by combining the accuracy of a crawl-based search with the timeliness of a feed-based search.

“We’ve combined ‘I know what I want to find’ with ‘Tell me what I should watch,’” says Greg Morrow, president and cofounder of PureVideo Networks.”

Video Search – Our Unifying Concept


• Enterprise-level LAMP architecture

• Centralized, proprietary content management system (“CMS”)

– Easy publication, classification and syndication

– Non-technical editors can easily publish content in a timely fashion

• Original video digital asset and storage infrastructure

• Sophisticated workflow allowing for high-volume ingestion, storage and transcoding of video (transcode in 4 formats)

• Supports distribution over all IP platforms (broadband, VOD and mobile)

• Supports 4 properties in comScore Top 2000 with significant excess capacity

• Social networking functionality, playlist video algorithms and significant online programming intelligence

Scalable and Flexible Technology Platform


Monetization Success

• PureVideo is already recognized by large branded advertisers as a trusted, safe and engaging web 2.0 video business that can deliver a high-quality and targeted audience

• Direct sales efforts began in Fall, 2006, and we are already generating strong results

Property Key Advertisers


Strategic Partnerships

• Content, technology and distribution partners recognize the value of PureVideo’s brands, content and audience


Agenda

I. Company Overview




B. GrindTV.com


D. StupidVideos.com

E. PureVideo.com


IV. Growth Strategy



Growth Strategy

1. Focus on depth and monetization of premium destinations

― Priority properties are GrindTV and HollywoodUpClose

2. Continued monetization of content library to grow content syndication revenue

3. Leverage PureVideo search model

― Drive paid referral revenue

― Drive organic traffic to BODs

― Drive business intelligence to identify new BOD opportunities

4. Expand into new verticals

― Utilize search to cost effectively deploy deep, compelling and highly scalable BODs

― Selectively acquire / license content to augment depth of BODs where ROI is justified and demand is clear


• Consumer engagement to drive UGC creation

• Strong user opinions and reaction to encourage social networking and loyalty

• Identifiable audience demographic • Has successful analog in print or cable

but no dominant online player

Qualitative Attributes

• Attracts at least 250K free monthly uniques after 90 days

• Generates at least $0.02 per visit after 90 days

• Has strong PPC potential (e.g., travel)

Monetary Criteria

The Ideal Vertical…


Our Newest Vertical


Agenda

I. Company Overview




B. GrindTV.com


D. StupidVideos.com

E. PureVideo.com


IV. Growth Strategy



Summary Financial Information

($ in '000s) 2007E 2008E Run Rate

Q1 Q2 Q3 Q4 Q1 FY 2007E as of Q1 08 FY 2008E

Total Visits (000's) 34,479 19,252 23,411 32,470 37,421 109,612 149,685 176,293

Total Video Views (000's) - 185,216 281,759 441,103 515,536 908,077 2,062,145 2,413,465

Total Revenue $500 $358 $815 $1,658 $2,410 $3,331 $9,640 $12,593

Cost of Goods Sold (186) (67) (80) (103) (117) (436) (468) (550)

Traffic Acquisition Cost (313) (210) (340) (510) (660) (1,373) (2,640) (3,120)

Other Operating Expenses (1,249) (1,119) (1,154) (1,446) (1,664) (4,969) (6,656) (7,046)

Total Expenses (1,748) (1,396) (1,574) (2,060) (2,441) (6,778) (9,764) (10,716)

Total EBITDA ($1,248) ($1,038) ($759) ($402) ($31) ($3,447) ($124) $1,877

Capital Expenditures (131) (110) (75) (75) (100) (391) (400) (400)

Cash Flow (1,379) (1,148) (834) (477) (131) (3,838) NA 1,477

Cumulative Cash Flow (1) NA (274) (1,108) (1,585) (1,716) (1,585) NA (108)

(1) Cumulative cash flow shown from 6/1/07 to reflect approximate date of new funding


Proposed Financing

• We are seeking to raise $4 million in new Series B financing to fund the projected growth

– Softbank, our lead investor, will roll its bridge financing into this round

– Total Series B financing expected to be $6.25 million

– We anticipate the financing round to close before the end of June

• We do not anticipate any additional financing will be needed

– The company is projected to generate positive cash flow in Q1 2008


Wrap-Up

• Leading provider of online video content and search

• Differentiated model with powerful monetization platform

• Proprietary video search utility and scalable technology platform

• A growing library of valuable, advertiser-friendly content

• Traction with major branded advertisers

• Experienced and proven management team

Proprietary and Confidential0. 1 Agenda I.Company Overview II.Market Environment and Position III.Product Portfolio A.PureVideo Editorial Overview B.GrindTV.com.

Documents

wrapup slide

confidential0 slide

media usage slide

purevideo editorial

launch of purevideo

vp of search sales

years of sales experience

sales technology iv