Private Media Group (PRVT)

Operating Activities

Net cash provided by operating activities was EUR 1.0 million for the three months ended March 31, 2009, and was primarily the result of net income, as adjusted for non-cash transactions, and cash related to changes in operating assets and liabilities. The net loss of EUR 0.8 million was adjusted to reconcile net income to net cash flows from operating activities with bad debt provision of EUR 0.1 million, amortization of web pages of EUR 0.3 million depreciation of EUR 0.2 million and amortization of photographs and videos of EUR 1.4 million making a total of EUR 2.1 million, providing a net balance of EUR 1.3 million. The total of EUR 1.3 million was added to by changes in trade accounts receivable, inventories, and prepaid expenses and other current assets totaling EUR 0.8 million offset by EUR 1.1 million from related party receivable, income taxes payable. accounts payable trade and accrued other liabilities. Net cash provided by operating activities was EUR 2.3 million for the three months ended March 31, 2008. The decrease in net cash provided by operating activities of EUR 1.3 million for the three months ended March 31, 2009 compared to the same period last year was primarily the result of changes in operating assets and liabilities.

Operating Activities

Net cash provided by our operating activities was EUR 5.2 million for 2008 compared to EUR 7.6 million for 2007, and was primarily the result of net loss, as adjusted for non-cash transactions and uses of cash related to changes in operating assets and liabilities. We adjusted our net loss of EUR 5.2 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 1.0 million, (2) bad debt provision of EUR 0.3 million, (3) amortization of other intangible assets of EUR 0.4 million and (4) amortization of photographs and videos of EUR 6.3 million which was offset by EUR 1.9 million from deferred income taxes, which resulted in an adjusted income of EUR 1.1 million. Changes in operating assets and liabilities added

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EUR 4.1 million net through trade accounts receivable, inventories, prepaid expenses and other current assets and income taxes payable totaling EUR 5.7 million, offset by EUR 1.6 million from, related party receivable, accounts payable trade and accrued other liabilities. The decrease in cash provided by operating activities for 2008 compared to 2007 is primarily the result of net loss, as adjusted for non-cash transactions, offset by changes in operating assets and liabilities.

Net cash provided by our operating activities was EUR 7.6 million for 2007 compared to EUR 7.4 million for 2006, and was primarily the result of net loss, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. We adjusted our net loss of EUR 0.4 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 0.8 million, (2) bad debt provision of EUR 0.4 million, (3) amortization of other intangible assets of EUR 0.1 million and (4) amortization of photographs and videos of EUR 6.8 million which was offset by EUR 0.6 million from deferred income taxes, which resulted in an adjusted income of EUR 7.1 million. Changes in operating assets and liabilities added EUR 0.5 million net through inventories, accounts payable trade, accrued other liabilities and income taxes payable totaling EUR 1.5 million, offset by EUR 1.0 million from trade accounts receivable, related party receivable, prepaid expenses and other current assets. The increase in cash provided by operating activities for 2007 compared to 2006 is primarily the result of changes in operating assets and liabilities.

Net cash provided by our operating activities was EUR 7.4 million for 2006 compared to EUR 4.4 million for 2005, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. We adjusted our net income of EUR 0.5 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 0.9 million, (2) convertible note adjustment of EUR 0.1 million, (3) bad debt provision of EUR 0.2 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.7 million making a total of EUR 8.5 million which was offset by EUR 0.9 million from deferred income taxes, providing a net balance of EUR 7.6 million. Changes in operating assets and liabilities reduced the net balance by EUR 0.2 million through trade accounts receivable, related party receivable, accounts payable trade and accrued other liabilities totaling EUR 2.4 million, offset by EUR 2.1 million from inventories, prepaid expenses and other current assets and income taxes payable. The increase in cash provided by operating activities for 2006 compared to 2005 is the result of both net income and adjustments to reconcile net income to net cash flows from operating activities and changes in operating assets and liabilities.

Operating Activities

Net cash provided by operating activities was EUR 4.8 million for the nine months ended September 30, 2008, and was primarily the result of net income, as adjusted for non-cash transactions, and cash related to changes in operating assets and liabilities. The net loss of EUR 2.7 million was adjusted to reconcile net income to net cash flows from operating activities with bad debt

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provision of EUR 0.2 million, amortization of other intangible assets of EUR 0.1 million, depreciation of EUR 0.8 million and amortization of photographs and videos of EUR 4.7 million making a total of EUR 5.8 million, providing a net balance of EUR 3.1 million. The total of EUR 3.1 million was added to by changes in trade accounts receivable, inventories and prepaid expenses and other current assets totaling EUR 3.8 million offset by EUR 1.7 million from accounts payable trade, related party receivable, income taxes payable and accrued other liabilities. Net cash provided by operating activities was EUR 5.5 million for the nine months ended September 30, 2007. The decrease in net cash provided by operating activities of EUR 0.7 million for the nine months ended September 30, 2008 compared to the same period last year was primarily the result of a decrease in cash from operating activities offset by an increase in cash related to changes in operating assets and liabilities.

Operating Activities

Net cash provided by operating activities was EUR 3.7 million for the six months ended June 30, 2008, and was primarily the result of net income, as adjusted for non-cash transactions, and cash related to changes in operating assets and liabilities. The net loss of EUR 1.7 million was adjusted to reconcile net income to net cash flows from operating activities with bad debt provision and amortization of other intangible assets of EUR 0.1 million, depreciation of EUR 0.6 million and amortization of photographs and videos of EUR 3.2 million making a total of EUR 3.9 million, providing a net balance of EUR 2.1 million. The total of EUR 2.2 million was added to by changes in trade accounts receivable, inventories and prepaid expenses and other current assets totaling EUR 3.1 million offset by EUR 1.6 million from accounts payable trade, related party receivable, income taxes payable and accrued other liabilities. Net cash provided by operating activities was EUR 3.7 million for the six months ended June 30, 2007. The increase in net cash provided by operating activities of EUR 0.1 million for the six months ended June 30, 2008 compared to the same period last year was primarily the result of cash related to changes in operating assets and liabilities.

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Operating Activities

Net cash provided by operating activities was EUR 2.3 million for the three months ended March 31, 2008, and was primarily the result of net income, as adjusted for non-cash transactions, and cash related to changes in operating assets and liabilities. The net loss of EUR 0.8 million was adjusted to reconcile net income to net cash flows from operating activities with depreciation of EUR 0.3 million and amortization of photographs and videos of EUR 1.6 million making a total of EUR 1.9 million, providing a net balance of EUR 1.1 million. The total of EUR 1.1 million was added to by changes in trade accounts receivable, inventories, accounts payable trade and prepaid expenses and other current assets totaling EUR 2.0 million offset by EUR 0.8 million from related party receivable, income taxes payable and accrued other liabilities. Net cash provided by operating activities was EUR 2.6 million for the three months ended March 31, 2007. The decrease in net cash provided by operating activities of EUR 0.3 million for the three months ended March 31, 2008 compared to the same period last year was primarily the result of net income, as adjusted for non-cash transactions.

Operating Activities

Net cash provided by our operating activities was EUR 7.6 million for 2007 compared to EUR 7.4 million for 2006, and was primarily the result of net loss, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. We adjusted our net loss of EUR 0.4 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 0.8 million, (2) bad debt provision of EUR 0.4 million, (3) amortization of other intangible assets of EUR 0.1 million and (4) amortization of photographs and videos of EUR 6.8 million which was offset by EUR 0.6 million from deferred income taxes, which resulted in an adjusted income of EUR 7.1 million. Changes in operating assets and liabilities added EUR 0.5 million net through inventories, accounts payable trade, accrued other liabilities and income taxes payable totaling EUR 1.5 million, offset by EUR 1.0 million from trade accounts receivable, related party receivable, prepaid expenses and other current assets. The increase in cash provided by operating activities for 2007 compared to 2006 is primarily the result of changes in operating assets and liabilities.

Net cash provided by our operating activities was EUR 7.4 million for 2006 compared to EUR 4.4 million for 2005, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. We adjusted our net income of EUR 0.5 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 0.9 million, (2) convertible note adjustment of EUR 0.1 million, (3) bad debt provision of EUR 0.2 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.7 million making a total of EUR 8.5 million which was offset by EUR 0.9 million from deferred income taxes, providing a net balance of EUR 7.6 million. Changes in operating assets and liabilities reduced the net balance by EUR 0.2 million through trade accounts receivable, related party receivable, accounts payable trade and accrued other liabilities totaling EUR 2.4 million, offset by EUR 2.1 million from inventories, prepaid expenses and other current assets and income taxes payable. The increase in cash provided by operating activities for 2006 compared to 2005 is the result of both net income and adjustments to reconcile net income to net cash flows from operating activities and changes in operating assets and liabilities.

Net cash provided by our operating activities was EUR 4.4 million for 2005 compared to EUR 8.3 million for 2004, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. We adjusted our net income of EUR 0 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 1.1 million, (2) convertible note adjustment of EUR 0.2 million, (3) bad debt provision of EUR 0.2 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.4 million making a total of EUR 7.9 million which was offset by EUR 1.3 million from gain on sale of building and EUR 0.5 million from deferred income taxes, providing a net balance of EUR 6.2 million. Changes in operating assets and liabilities reduced the net balance by EUR 2.7 million through trade accounts receivable, related party receivable, accounts payable trade, inventories and prepaid expenses and other current assets totaling EUR 2.9 million, offset by EUR 0.8 million from income taxes payable and accrued other liabilities. The decrease in cash provided by operating activities for 2005 compared to 2004 is primarily the result of both net income and adjustments to reconcile net income to net cash flows from operating activities and changes in operating assets and liabilities.

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Operating Activities

Net cash provided by operating activities was EUR 5.5 million for the nine months ended September 30, 2007, and was primarily the result of net income, as adjusted for non-cash transactions. The net loss of EUR 0.1 million was adjusted to reconcile net income to net cash flows from operating activities with depreciation of EUR 0.6 million, bad debt provision of EUR 0.3 million, amortization of other intangible assets of EUR 0.1 million and amortization of photographs and videos of EUR 5.0 million making a total of EUR 5.9 million. The total of EUR 5.9 million was added to by changes in inventories, accounts payable trade and accrued other liabilities totaling EUR 1.1 million offset by EUR 1.6 million from trade accounts receivable, related party receivable, prepaid expenses and other current assets and income taxes payable. Compared to the same period in 2006, there was an increase of EUR 0.7 million in net cash provided by operating activities. The increase was primarily the result of changes in operating assets and liabilities.

Operating Activities

Net cash provided by operating activities was EUR 3.6 million for the six months ended June 30, 2007, and was primarily the result of net income, as adjusted for non-cash transactions. The net loss of EUR 0.5 million was adjusted to reconcile net income to net cash flows from operating activities with depreciation of EUR 0.4 million, bad debt provision of EUR 0.1 million, amortization of other intangible assets of EUR 0.1 million and amortization of photographs and videos of EUR 3.4 million making a total of EUR 4.0 million. The total of EUR 4.0 million was added to by changes in trade accounts receivable, inventories and accounts payable trade totaling EUR 1.3 million offset by EUR 1.2 million from related party receivable, prepaid expenses and other current assets, income taxes payable and accrued other liabilities. Compared to the same period in 2006, there was no change in net cash provided by operating activities.

Operating Activities

Net cash provided by operating activities was EUR 2.6 million for the three months ended March 31, 2007, and was primarily the result of net income, as adjusted for non-cash transactions, and cash related to changes in operating assets and liabilities. The net loss of EUR 0.6 million was adjusted to reconcile net income to net cash flows from operating activities with depreciation of EUR 0.2 million and amortization of photographs and videos of EUR 1.7 million making a total of EUR 2.0 million, providing a net balance of EUR 1.4 million. The total of EUR 1.4 million was added to by changes in trade accounts receivable, inventories and accounts payable trade totaling EUR 1.8 million offset by EUR 0.7 million from related party receivable, prepaid expenses and other current assets, income taxes payable and accrued other liabilities. Net cash provided by operating activities was EUR 0.8 million for the three months ended March 31, 2006. The increase in net cash provided by operating activities of EUR 1.8 million for the three months ended March 31, 2007 compared to the same period last year was primarily the result effects of changes in operating assets and liabilities.

Operating Activities

Net cash provided by our operating activities was EUR 7.4 million for 2006 compared to EUR 4.4 million for 2005, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. We adjusted our net income of EUR 0.5 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 0.9 million, (2) convertible note adjustment of EUR 0.1 million, (3) bad debt provision of EUR 0.2 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.7 million making a total of EUR 8.5 million which was offset by EUR 0.9 million from deferred income taxes, providing a net balance of EUR 7.6 million. Changes in operating assets and liabilities reduced the net balance by EUR 0.2 million through trade accounts receivable, related party receivable, accounts payable trade and accrued other liabilities totaling EUR 2.4 million, offset by EUR 2.1 million from inventories, prepaid expenses and other current assets and income taxes payable. The increase in cash provided by operating activities for 2006 compared to 2005 is the result of both net income and adjustments to reconcile net income to net cash flows from operating activities and changes in operating assets and liabilities.

Net cash provided by our operating activities was EUR 4.4 million for 2005 compared to EUR 8.3 million for 2004, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. We adjusted our net income of EUR 0 million to reconcile it to net cash flows from operating activities. Adjustments

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included (1) depreciation of EUR 1.1 million, (2) convertible note adjustment of EUR 0.2 million, (3) bad debt provision of EUR 0.2 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.4 million making a total of EUR 7.9 million which was offset by EUR 1.3 million from gain on sale of building and EUR 0.5 million from deferred income taxes, providing a net balance of EUR 6.2 million. Changes in operating assets and liabilities reduced the net balance by EUR 2.7 million through trade accounts receivable, related party receivable, accounts payable trade, inventories and prepaid expenses and other current assets totaling EUR 2.9 million, offset by EUR 0.8 million from income taxes payable and accrued other liabilities. The decrease in cash provided by operating activities for 2005 compared to 2004 is primarily the result of both net income and adjustments to reconcile net income to net cash flows from operating activities and changes in operating assets and liabilities.

Net cash provided by our operating activities was EUR 8.3 million for 2004 compared to EUR 10.3 million for 2003, and was primarily the result of net income and adjustments to reconcile net income to net cash flows from operating activities. We adjusted our net loss of EUR 0.8 million annual report to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 2.1 million, (2) convertible note adjustment of EUR 0.1 million, (3) bad debt provision of EUR 1.6 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.6 million making a total of EUR 9.7 million annual report which was offset by EUR 0.7 million from deferred income taxes, providing a net balance of EUR 9.0 million (restated). Changes in operating assets and liabilities reduced the net balance by EUR 0.7 million annual report through trade accounts receivable, related party receivable, accounts payable trade, income taxes payable and accrued other liabilities totaling EUR 3.1 million, offset by EUR 2.4 million annual report from inventories and prepaid expenses and other current assets.

Operating Activities

Net cash provided by operating activities was EUR 4.7 million for the nine months ended September 30, 2006, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. Net income of EUR 1.0 million was adjusted to reconcile net income to net cash flows from operating activities including some minor adjustments, depreciation of EUR 0.8 million and amortization of photographs and videos of EUR 4.9 million making a total of EUR 6.9 million. The total of EUR 6.9 million was then reduced by changes in trade accounts receivable, related party receivable, prepaid expenses and other current assets, accounts payable trade, income taxes payable and accrued other liabilities totaling EUR 3.0 million offset by EUR 0.7 million from inventories. Net cash provided by operating activities was EUR 2.8 million for the nine months ended September 30, 2005. The increase in cash of EUR 1.9 million provided by operating activities for the nine months ended September 30, 2006 compared to the same period last year is primarily the result of adjustment to reconcile net income to net cash flows from operating activities.

Operating Activities

Net cash provided by operating activities was EUR 3.6 million for the six months ended June 30, 2006, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of

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cash related to changes in operating assets and liabilities. Net income of EUR 0.0 million was adjusted to reconcile net income to net cash flows from operating activities including some minor adjustments, depreciation of EUR 0.4 million and amortization of photographs and videos of EUR 3.3 million making a total of EUR 3.9 million. The total of EUR 3.9 million was then reduced by changes in related party receivable, prepaid expenses and other current assets, income taxes payable and accrued other liabilities totaling EUR 1.3 million offset by EUR 1.0 million from trade accounts receivable, inventories and accounts payable trade. Net cash provided by operating activities was EUR 1.8 million for the six months ended June 30, 2005. The increase in cash of EUR 1.8 million provided by operating activities for the six months ended June 30, 2006 compared to the same period last year is primarily the result of adjustment to reconcile net income to net cash flows from operating activities.

Operating Activities

Net cash provided by operating activities was EUR 0.8 million for the three months ended March 31, 2006, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. The net loss of EUR 0.5 million was adjusted to reconcile net income to net cash flows from operating activities with some minor adjustments, depreciation of EUR 0.2 million and amortization of photographs and videos of EUR 1.5 million making a total of EUR 1.8 million, providing a net balance of EUR 1.3 million. The total of EUR 1.3 million was then reduced by changes in related party receivable, income taxes payable, accounts payable trade and accrued other liabilities totaling EUR 1.0 million offset by EUR 0.4 million from trade accounts receivable, inventories and prepaid expenses and other current assets. Net cash provided by operating activities was EUR 0.4 million for the three months ended March 31, 2005. The increase in cash provided by operating activities for the three months ended March 31, 2006 compared to the same period last year is the result of adjustment to reconcile net income to net cash flows from operating activities.

Operating Activities

Net cash provided by our operating activities was EUR 4.4 million for 2005 compared to EUR 8.3 million for 2004, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. We adjusted our net income of EUR 0 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 1.1 million, (2) convertible note adjustment of EUR 0.2 million, (3) bad debt provision of EUR 0.2 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.4 million making a total of EUR 7.9 million which was offset by EUR 1.3 million from gain on sale of building and EUR 0.5 million from deferred income taxes, providing a net balance of EUR 6.2 million. Changes in operating assets and liabilities reduced the net balance by EUR 2.7 million through trade accounts receivable, related party receivable, accounts payable trade, inventories and prepaid expenses and other current assets totaling EUR 2.9 million, offset by EUR 0.8 million from income taxes payable and accrued other liabilities. The decrease in cash provided by operating activities for 2005 compared to 2004 is primarily the result of both net income and adjustments to reconcile net income to net cash flows from operating activities and changes in operating assets and liabilities.

Net cash provided by our operating activities was EUR 8.3 million for 2004 compared to EUR 10.3 million for 2003, and was primarily the result of net income and adjustments to reconcile net income to net cash flows from operating activities. We adjusted our net loss of EUR 0.8 million annual report to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 2.1 million, (2) convertible note adjustment of EUR 0.1 million, (3) bad debt provision of EUR 1.6 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.6 million making a total of EUR 9.7 million annual report which was offset by EUR 0.7 million from deferred income taxes, providing a net balance of EUR 9.0 million (restated). Changes in operating assets and liabilities reduced the net balance by EUR 0.7 million annual report through trade accounts receivable, related party receivable, accounts payable trade, income taxes payable and accrued other liabilities totaling EUR 3.1 million, offset by EUR 2.4 million annual report from inventories and prepaid expenses and other current assets.

Net cash provided by our operating activities was EUR 10.3 million for 2003 compared to EUR 4.3 million for 2002, and was primarily the result of net income and adjustments to reconcile net income to net cash flows from operating activities. We adjusted our net income of EUR 0.6 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 1.2 million, (2) convertible note adjustment of EUR 0.1 million, (3) bad debt provision of EUR 0.8 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 7.1 million making a total of EUR 8.7 million which was offset by EUR 1.2 million from deferred income taxes, providing a net balance of EUR 7.5 million. Changes in operating assets and liabilities added a total of EUR 2.8 million through trade accounts receivable, prepaid expenses and other current assets, accounts payable trade, accrued other liabilities and income taxes payable totaling EUR 4.7 million, offset by EUR 1.9 million from inventories.

Operating Activities

Net cash provided by operating activities was EUR 2.8 million for the nine months ended September 30, 2005, and was primarily the result of net income, as adjusted for non-cash transactions,

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offset by uses of cash related to changes in operating assets and liabilities. The net income of EUR 0.0 million was adjusted to reconcile net income to net cash flows from operating activities, representing depreciation of EUR 0.8 million, bad debt provision of EUR 0.1 million, amortization of other intangible assets of EUR 0.1 million and amortization of photographs and videos of EUR 5.0 million making a total of EUR 6.1 million which was offset by gain on sale of building of EUR 1.3 million, providing a net balance of EUR 4.8 million. The total of EUR 4.8 million was then reduced by changes in trade accounts receivable, related party receivable, inventories, prepaid expenses and other current assets and income taxes payable totaling EUR 2.4 million offset by EUR 0.4 million from accounts payable trade and accrued other liabilities. Net cash provided by operating activities was EUR 6.5 million for the nine months ended September 30, 2004. The decrease in cash provided by operating activities for the nine months ended September 30, 2005 compared to the same period last year is primarily the result of net income, as adjusted for non-cash transactions.

Operating Activities

Net cash provided by operating activities was EUR 1.8 million for the six months ended June 30, 2005, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. The net income of EUR 0.0 million was adjusted to reconcile net income to net cash flows from operating activities, representing depreciation of EUR 0.6 million, bad debt provision of EUR 0.1 million, amortization of other intangible assets of EUR 0.1 million

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and amortization of photographs and videos of EUR 3.3 million making a total of EUR 4.1 million which was offset by gain on sale of building of EUR 1.3 million, providing a net balance of EUR 2.8 million. The total of EUR 2.8 million was then reduced by changes in trade accounts receivable, related party receivable, inventories, prepaid expenses and other current assets and income taxes payable totaling EUR 1.8 million offset by EUR 1.0 million from accounts payable trade and accrued other liabilities. Net cash provided by operating activities was EUR 3.3 million for the six months ended June 30, 2004. The decrease in cash provided by operating activities for the six months ended June 30, 2005 compared to the same period last year is primarily the result of net income.

Operating Activities

Net cash provided by operating activities was EUR 0.4 million for the three months ended March 31, 2005, and was primarily the result of net income, as adjusted for non-cash transactions, offset by uses of cash related to changes in operating assets and liabilities. The net income of EUR 0.7 million was adjusted to reconcile net income to net cash flows from operating activities, representing depreciation of EUR 0.3 million and amortization of photographs and videos of EUR 1.5 million making a total of EUR 2.6 million which was offset by gain on sale of building of EUR 1.3 million, providing a net balance of EUR 1.3 million. The total of EUR 1.3 million was then reduced by changes in trade accounts receivable, related party receivable, inventories, prepaid expenses and other current assets and income taxes payable totaling EUR 1.4 million offset by EUR 0.5 million from accounts payable trade and accrued other liabilities. Net cash provided by operating activities was EUR 2.1 million for the three months ended March 31, 2004. The decrease in cash provided by operating activities for the three months ended March 31, 2005 compared to the same period last year is the result of adjustment to reconcile net income to net cash flows from operating activities.

Operating Activities

Net cash provided by our operating activities was EUR 8.3 million for 2004 compared to EUR 10.3 million for 2003, and was primarily the result of net income and adjustments to reconcile net income to net cash flows from operating activities. We adjusted our net income of EUR 0.2 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 2.1 million, (2) convertible note adjustment of EUR 0.1 million, (3) bad debt provision of EUR 1.6 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 6.6 million making a total of EUR 10.8 million which was offset by EUR 0.7 million from deferred income taxes, providing a net balance of EUR 10.1 million. Changes in operating assets and liabilities reduced the net balance by EUR 1.8 million through trade accounts receivable, related party receivable, accounts payable trade, income taxes payable and accrued other liabilities totaling EUR 3.1 million, offset by EUR 1.3 million from inventories and prepaid expenses and other current assets.

Net cash provided by our operating activities was EUR 10.3 million for 2003 compared to EUR 4.3 million for 2002, and was primarily the result of net income and adjustments to reconcile net income to net cash flows from operating activities. We adjusted our net income of EUR 0.6 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 1.2 million, (2) convertible note adjustment of EUR 0.1 million, (3) bad debt provision of EUR 0.8 million, (4) amortization of goodwill and other intangible assets of EUR 0.1 million and (5) amortization of photographs and videos of EUR 7.1 million making a total of EUR 8.7 million which was offset by EUR 1.2 million from deferred income taxes, providing a net balance of EUR 7.5 million. Changes in operating assets and liabilities added a total of EUR 2.8 million through trade accounts receivable, prepaid expenses and other current assets, accounts payable trade, accrued other liabilities and income taxes payable totaling EUR 4.7 million, offset by EUR 1.9 million from inventories.

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Net cash provided by our operating activities was EUR 4.3 million for 2002 compared to EUR 7.5 million for 2001, and was primarily the result of net income and adjustments to reconcile net income to net cash flows from operating activities. We adjusted our net income of EUR 0.3 million to reconcile it to net cash flows from operating activities. Adjustments included (1) depreciation of EUR 1.0 million and (2) amortization of photographs and videos of EUR 5.8 million offset by (3) deferred income taxes of EUR 0.2 million, providing a total of EUR 6.9 million. We reduced the total of EUR 6.9 million by the increases in related party receivable, inventories, prepaid expenses and other current assets and income taxes payable totaling EUR 6.7 million, and we offset this reduction with EUR 4.2 million from trade accounts receivable accounts payable trade and accrued other liabilities.