Private Media Group (PRVT)

Wireless – Adult Mobile Content

With respect to mobile content, we believe this market is still in its infancy. During 2007 the distribution of Private content increased by 67% and by the end of the year it was available to 906 million handsets in 36 countries via 86 operators. In 2008, we have been optimizing our content delivery network of aggregators in order to secure a more aggressive long-term growth. This has created periods of gap in distribution with several operators during, but in the fall of this year this process was completed and consequently we expect sales to increase significantly during 2009.

The markets of Asia and the Americas are still underexploited by us and therefore represent a significant growth potential. In addition, Mobile TV, increased penetration of 3G handsets and the implementation of age verification systems offer additional significant growth potential with both current and future operators in 2008 and beyond¹².

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Furthermore, we have entered into an exclusive global partnership with Mobile Streams to distribute our premium adult content through their platform for off-portal mobile services. Mobile Streams is a premier global mobile music and media provider and through this partnership we are entering a new dimension of mobile content delivery. During the first two quarters of 2008, the mobile site private.mobi was launched in a few selected European markets as part of the initial stage in the development of this strategic global partnership. We believe the user behavior for mobile content will migrate from on-portal to off-portal and that this new business will be the principal revenue generator going forward¹³.

Wireless – Adult Mobile Content

With respect to mobile content, we believe this market is still in its infancy. During 2007 the distribution of Private content increased by 67% and by the end of the year it was available to 906 million handsets in 36 countries via 86 operators. The markets of Asia and the Americas are still underexploited by us and therefore represent a significant growth potential. Furthermore, Mobile TV, increased penetration of 3G handsets and the implementation of age verification systems offer additional significant growth potential with both current and future operators in 2008 and beyond¹².

In addition, during 2007 we entered into an exclusive global partnership with Mobile Streams to distribute our premium adult content through their platform for off-portal mobile services. Mobile Streams is a premier global mobile music and media provider and through this partnership we are entering a new dimension of mobile content delivery. We believe the user behavior for mobile content will migrate from on-portal to off-portal and that this new business will be the principal revenue generator going forward.

Wireless – Adult Mobile Content

With respect to mobile content, we believe this market is still in its infancy.
During 2007 the distribution of Private content increased by 67% and by the end of the year it was available to 906 million handsets in 36 countries via 86 operators. The markets of Asia and the Americas are still underexploited by us and
therefore represent a significant growth potential. Furthermore, Mobile TV, increased penetration of 3G handsets and the implementation of age verification systems offer additional significant growth potential with both current and future operators
in 2008 and beyond¹².

In addition,
during 2007 we entered into an exclusive global partnership with Mobile Streams to distribute our premium adult content through their platform for off-portal mobile services. Mobile Streams is a premier global mobile music and media provider and
through this partnership we are entering a new dimension of mobile content delivery. We believe the user behavior for mobile content will migrate from on-portal to off-portal and that this new business will be the principal revenue generator going
forward.

Wireless – Adult Mobile Content

The Company believes this market is still in its infancy. As of September 30, 2007, Private content was available to over 783 million handsets in 34 countries via 81 operators, of which 21 operators went live during 2007. The markets of Asia and the Americas are currently underexploited and therefore represent a significant growth potential to the Company. Mobile TV, increased penetration of 3G handsets and the implementation of age verification systems offer additional significant growth potential with both current and future operators in 2007 and beyond⁴.

Furthermore, we recently entered into an exclusive global partnership with Mobile Streams to distribute our premium adult content through their platform for off-portal mobile services. Mobile Streams is a premier global mobile music and media provider to handsets and other wireless devises and through this partnership, we are entering into the future of off-portal mobile content delivery. The Company believes the user behavior for mobile content will migrate from on-portal to off-portal just like it did with the Internet.

Wireless – Adult Mobile Content

As of June 30, 2007, Private content was available to over 745 million handsets in 33 countries via 78 operators, of which 18 operators went live during 2007. The Company is projecting to grow steadily with at least 10 additional operators each remaining quarter of 2007. Asia and the Americas are currently underexploited and therefore represent a significant growth potential to the Company. More distribution channels, advanced technology development, and the implementation of age verification systems offer further significant growth potential with both current and future operators in 2007 and beyond⁴.

In addition, we recently entered into an exclusive global partnership with Mobile Streams to distribute our premium adult content through their platform for off-portal mobile services. Mobile Streams is a premier global mobile music and media provider to handsets and other wireless devises and through this partnership, we are entering into the future of off-portal mobile content delivery.

Wireless – Adult Mobile Content

As of April 2007, Private content was available to approximately 657 million handsets in 33 countries via 72 operators, of which 7 operators went live during the first quarter of 2007. The Company is scheduled to go live with 11 additional operators in the second quarter of 2007 and is expecting to grow steadily with at least 10 additional operators each remaining quarter of 2007. Asia and the Americas are currently underexploited and therefore represent a significant growth potential to the Company. More distribution channels, advanced technology development, and the implementation of age verification systems offers us further significant growth potential in 2007 and beyond³.

Wireless – Adult Mobile Content

As of December 2006, Private content was available to over 544 million handsets in 31 countries via 62 operators, of which 35

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operators went live during 2006. The Company is scheduled to go live with 12 additional operators in the first quarter 2007 and is expecting to grow steadily with at least 10 additional operators each quarter during 2007. Asia and the Americas are currently underexploited and therefore represent a significant growth potential to the Company. More distribution channels, advanced technology development, and the implementation of age verification systems offers us further significant growth potential in 2007 and beyond¹³.

Wireless – Adult Mobile Content

As of September 30, 2006 Private’s mobile content was available to over 500 million handsets via 59 operators in 28 countries, of which 33 operators went live since September 2005. We are scheduled to go live with 20 additional operators in the fourth quarter and the Company is expecting to grow steadily with at least 10 additional operators each quarter during 2007. Asia and the Americas are currently unexplored and do therefore represent an enormous growth potential to us. Moreover, mobile data usage is still in the early days. More distribution channels and new technologies such as Mobile-TV and age verification systems, offering the ability to show explicit content, will provide us with significant growth in 2007 and beyond.³

Wireless – Adult Mobile Content

During the second quarter of 2005, we created a dedicated mobile content department headed up by Tim Clausen. This new development has launched us into a new era, gaining carriage with both national and international mobile carriers, and we are currently in the process of expanding our business in this market via several new operators. This will enable us to leverage our unique range of content, our trademarks and our huge existing customer base to take our mobile presence in Europe to a truly market dominant position. In 2005, the revenues from this distribution channel increased 83% compared to 2004 and sales compared to 2005 continues to increase. The increase in revenues is related to our content being available with additional new mobile phone operators.

As of June 30, 2006 Private’s content was available to mobile consumers via 52 operators in 24 countries, of which 26 operators went live since September 2005. We expect to go live with 17 additional operators in the third quarter and the Company is expecting to go live with additional operators thereafter. We expect the creation of our dedicated mobile content department to have a significant impact on revenues and operating profit in 2006.

We are currently unable to determine what our potential revenue will be from the marketing of our content to the mobile adult content market. However, we believe that adult content, as it has done with other new technologies, will help to drive the sale of content on mobile devices³.

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Wireless – Adult Mobile Content

During the second quarter of 2005, we created a dedicated mobile content department headed up by Tim Clausen. This new development has launched us into a new era, gaining carriage with both national

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and international mobile carriers, and we are currently in the process of expanding our business in this market via several new operators. This will enable us to leverage our unique range of content, our trademarks and our huge existing customer base to take our mobile presence in Europe to a truly market dominant position. In 2005, the revenues from this distribution channel increased 83% compared to 2004 and sales compared to 2005 continues to increase. The increase in revenues is related to our content being available with additional new mobile phone operators.

As of December 31, 2005 Private’s content was available to mobile consumers via 33 operators in 19 countries, of which 9 operators went live since September 2005. During the first quarter 2006, the Company went live with 8 additional operators and have contracted to go live with 14 additional in the near future. The Company is expecting to go live with additional operators during the remainder of 2006. We expect the creation of our dedicated mobile content department to have a significant impact on broadcasting revenues and operating profit in 2006.

We are currently unable to determine what our potential revenue will be from the marketing of our content to the mobile adult content market. However, we believe that adult content, as it has done with other new technologies, will help to drive the sale of content on mobile devices⁴.

Wireless – Adult Mobile Content

During the second quarter of 2005, we created a dedicated mobile content department headed up by Tim Clausen. This new development has launched us into a new era, gaining carriage with both national and international mobile carriers, and we are currently in the process of expanding our business in this market via several new operators. This will enable us to leverage our unique range of content, our trademarks and our huge existing customer base to take our mobile presence in Europe to a truly market dominant position. In 2005, the revenues from this distribution channel increased 83% compared to 2004. The increase in revenues is related to our content being available with additional new mobile phone operators.

As of December 31, 2005 Private’s content was available to mobile consumers via 33 operators in 19 countries, of which 9 operators went live since September 2005. During the first quarter 2006, the Company went live with 8 additional operators and have contracted to go live with 14 additional in the near future. The Company is expecting to go live with additional operators during the remainder of 2006. We expect the creation of our dedicated mobile content department to have a significant impact on broadcasting revenues and operating profit in 2006.

We are currently unable to determine what our potential revenue will be from the marketing of our content to the mobile adult content market. However, we believe that adult content, as it has done with other new technologies, will help to drive the sale of content on mobile devices¹⁰.

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