GSN / FUN Technologies Status Update

December 2007

2

Liberty Media and FUN Technologies Inc.

• Liberty Media bought FUN Technologies Inc. through 2 transactions at very different valuations

– On March 10, 2006, Liberty Media purchased 53% of FUN Technologies for an aggregate cash consideration of $194.5MM as of the transaction date (an implied valuation of $367.0MM)

– On June 21, 2007, Liberty Media made an offer to purchase all of the remaining shares of FUN (TSX: FUN / AIM: FUN) for the cash purchase price of GBP 1.635 per share (4% premium over June 21 closing price) or a total investment of ~$97.0MM (an implied valuation of $206.4MM)

• Liberty Media’s investment rationale was to capture significant synergies through full ownership of FUN Technologies

– Cross-Promotion / New Content

– Reduce Customer Acquisition/Retention Costs

– Expand Audience Base for Liberty’s Programming Assets

• In order to capture a positive IRR, significant synergies with GSN are required based on initial forecasts

– ~10% in additional cost savings

– ~40% in revenue enhancements

3

FUN Technologies, Inc.• SPE currently assuming fantasy league is not included

– Drives up valuation, not necessarily integral to FUN/GSN strategy– Liberty willing to separate

• Liberty’s recent valuation of $230MM for all of FUN, included $180MM for casual games– The casual games web business ($180MM)– The fantasy sports league ($40MM)– A sports info business of minimal to declining value ($10MM)

• Liberty likely to claim the “right” valuation is $300MM, with $240MM for casual games– Midpoint to its two investment valuations– Implied valuation to games business of $240MM (80% of total)

GSN• Liberty also claims it previously stated GSN had a value of $600MM (vs our $700MM estimate)

Implications• A combined entity therefore suggests an SPE contribution of $90MM -$240MM

– In-kind contribution – SPE contributes $180MM - $240MM of assets to match FUN contribution– Cash – SPE pays Liberty $90-$120MM in cash for ½ of FUN, which is then combined with GSN– Hybrid -- SPE contributes a mix of cash and assets (e.g., $60MM cash to buy a portion of FUN and $80MM of in-kind assets)– Fantasy league inclusion would add $20-$40MM in cost to SPE, depending on purchase approach

• Going forward EBIT and cash impact TBD, based on venture business plan

• Other alternatives– Accept minority position of between 31.5% (300/950) and 37.6% (350/930), or higher if other assets put in– Block combination of entities– Sell GSN stake

Valuation Considerations

4

Potential Value of SPE Contributed Assets

(1) All cash flows at discounted to present value; 16.5% discount rate for both parties.

Value to:(1)

Category Contribution Economics GSN/FUNOp. Cost for SPE

MRP for SPE

Conservative ScenarioAd Inventory :10 spot each night on WOF and

Jeopardy! for 3 years- GSN values at rate Card- SPE values at actual rates- Incremental ad unit beyond MRP - There is a KingWorld fee waiver- GSN and SPE both deduct agency fees

$8.6 ($6.1) $0.0

Mobile Games Exclusive rights to WOF and Jeopardy! Mobile games for 3 years

- Both parties generate same revenue and EBIT

$11.6 ($11.6) ($11.6)

Online Games Exclusive rights to WOF, Jeopardy! and Rock 'N' Roll Jeopardy! Online games for 3 years

- Both parties generate same revenue and EBIT- Includes online digital revenues as well as retail revenue

$2.1 ($2.1) ($2.1)

Game Show License

Credit against anticipated license fees for next 3 years

- Assumes $1MM in licenses per year based on historical average

$2.2 ($2.2) $0.0

Total $24.5 ($22.0) ($13.7)

Aggressive ScenarioAd Inventory :10 spot each night on WOF and

Jeopardy! for 5 years- GSN values at rate Card- SPE values at actual rates- Incremental ad unit beyond MRP - There is a KingWorld fee waiver- GSN and SPE both deduct agency fees

$12.5 ($8.9) $0.0

Mobile Games Exclusive rights to WOF and Jeopardy! Mobile games for 5 years

- Both parties generate same revenue and EBIT

$16.3 ($16.3) ($16.3)

Online Games Exclusive rights to WOF, Jeopardy! and Rock 'N' Roll Jeopardy! Online games for 5 years

- Both parties generate same revenue and EBIT- Includes online digital revenues as well as retail revenue

$3.2 ($3.2) ($3.2)

Game Show License

Provide an "all you can eat" license for next 5 years

- Assumes license fees are at full market rate for all shows for GSN/FUN value- Op cost equals 5 years at GSN current run-rate

$22.5 ($3.2) $0.0

Syndicated Show

Create Power of 10 First-Run Syndicated Show

- Assumes profit before overhead- Show remains on the air for 5 seasons- $15.46 W25-54 CPM / 1.8HH Rating

$20.2 ($20.2) $0.0

Total $74.7 ($51.8) ($19.5)

5

Impact of Cash Contributions vs. In-kind Contributions

NOTE: Assumes GSN valuation of $600MM.

• Example: If SPE contributes $80MM in In-Kind contributions and FUN Technologies is valued at $200MM, then SPE would need to commit an additional $60MM in cash to have a 50% ownership stake in NEWCO or be left with a 43% ownership stake

Value of FUN Technologies ($ in MM)

$180 $190 $200 $210 $220 $230 $240

$20 $80 / 40% $85 / 40% $90 / 39% $95 / 39% $100 / 38% $105 / 38% $110 / 37%

$30 $75 / 41% $80 / 40% $85 / 40% $90 / 39% $95 / 39% $100 / 38% $105 / 38%

$40 $70 / 41% $75 / 41% $80 / 40% $85 / 40% $90 / 40% $95 / 39% $100 / 39%

$50 $65 / 42% $70 / 42% $75 / 41% $80 / 41% $85 / 40% $90 / 40% $95 / 39%

$60 $60 / 43% $65 / 42% $70 / 42% $75 / 41% $80 / 41% $85 / 40% $90 / 40%

$70 $55 / 44% $60 / 43% $65 / 43% $70 / 42% $75 / 42% $80 / 41% $85 / 41%

$80 $50 / 44% $55 / 44% $60 / 43% $65 / 43% $70 / 42% $75 / 42% $80 / 41%

SP

E In

-Kin

d C

on

trib

uti

on

($

in M

M)

6

Next Steps

• GSN forecasts– With and without FUN combination

• Potential additional sources of value– Allow GSN to air Wheel of Fortune and Jeopardy! Episodes 2 years after broadcast and in better time-periods

• EBIT and gain estimates, vs. current MRP

• Assess value of digital gameshow rights via other avenues (e.g., JV with game publisher)

• Agree on proposal to Liberty– Assets to contribute, plus cash– Sale alternative price– Timing/GSN plan approval pending

7

Appendix A: Financial Calculations

8

Valuation Review for FUN Technology, Inc.

2008P 2009P 2010P 2011P 2012PTotal Cash Flow $7.8 $22.1 $29.3 $29.3 $37.0Exit Value 314.5

$7.8 $22.1 $29.3 $29.3 $351.5

NPV $225.46

Fantasy Sports $3.1 $4.3 $5.4 $6.2 $7.0Exit Value 59.5

$3.1 $4.3 $5.4 $6.2 $66.5

NPV $44.41

Implied Games Only NPV $181.04

9

FUN Technology, Inc. Free Cash Flows

Year Ending December 31,(US$ millions) Q4 2007P 2008P 2009P 2010P 2011P 2012PRevenue

Games $11.6 $84.8 $114.8 $138.0 $165.8 $199.2Fantasy Sports 4.5 17.4 20.7 23.8 26.3 28.5Sports Information 2.4 7.8 7.9 8.1 8.3 8.5Other 0.6 2.6 3.1 3.5 3.8 4.1

Total Revenue $19.1 $112.6 $146.5 $173.4 $204.2 $240.3

EBITDAGames $2.3 $9.4 $18.2 $26.2 $37.1 $50.4Fantasy Sports 0.8 3.1 4.3 5.4 6.2 7.0Sports Information 1.3 3.4 3.3 3.3 3.3 3.3Other (2.4) (3.3) (2.0) (2.9) (3.2) (3.7)

Total EBITDA $2.0 $12.6 $23.8 $32.0 $43.4 $57.0

Less: Unlevered Cash Taxes 0.0 0.0 0.0 (1.1) (12.5) (18.0)Less: Capital Expenditures (0.2) (1.3) (0.8) (0.9) (0.8) (1.0)Less: Changes in Non-Cash 0.0 0.0 0.0 0.0 0.0 0.0Working Capital (2.9) (3.5) (0.9) (0.7) (0.8) (1.0)

Free Cash Flow ($1.1) $7.8 $22.1 $29.3 $29.3 $37.0

10

Impact of Cash Contributions vs. In-kind Contributions

In-kind contribution of $80MM would lead to 43% ownership

In-kind of $80MM + $60MM cash (for a portion of FUN) leads to 50% overall ownership

Merger without Sony Contribution Merger with Sony ContributionLiberty Share of GSN $300 38% Liberty Share of GSN $300 34%Liberty Share of FUN $200 25% Liberty Share of FUN $200 23% Sub-total $500 63% Sub-total $500 57%

Sony Share of GSN $300 38% Sony Share of GSN $300 34%Combined Value $800 100% Sony Contributed Assets $80 9%

Sub-total $380 43%

Combined Value of NEWCO $880 100%

Acquiring half of FUN for $100MM would lead to 50% ownershipMerger without Sony Contribution Merger after Sony Buys 50% of FUN

Liberty Share of GSN $300 38% Liberty Share of GSN $300 38%Liberty Share of FUN $200 25% Liberty Share of FUN $100 13% Sub-total $500 63% Sub-total $400 50%

Sony Share of GSN $300 38% Sony Share of GSN $300 38%Combined Value $800 100% Sony Share of FUN $100 13%

Sub-total $400 50%

Combined Value of NEWCO $800 100%

Merger without Sony Contribution Merger with Contribution + Cash of FUNLiberty Share of GSN $300 38% Liberty Share of GSN $300 34%Liberty Share of FUN $200 25% Liberty Share of FUN 140 16% Sub-total $500 63% Sub-total $440 50%

Sony Share of GSN $300 38% Sony Share of GSN $300 34%Combined Value $800 100% Sony Contributed Assets 80 9%

Sony Share of FUN 60 7% Sub-total $440 50%

Combined Value of NEWCO $880 100%

11

Ad Inventory Value

Ad Inventory

Pricing Rate Card ActualsWOF :10 Weeknight $8,747 $7,174WOF :10 Weekend $2,913 $2,413Jeopardy! :10 Weeknight $7,485 $4,295Jeopardy! :10 Weekend $1,970 $1,145

Values at Rate Card ($MM)Year

1 2 3 4 5 6 7 8 9 10 Gross Value $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.5615% Agency Commision ($0.68) ($0.68) ($0.68) ($0.68) ($0.68) ($0.68) ($0.68) ($0.68) ($0.68) ($0.68)Net Value $3.88 $3.88 $3.88 $3.88 $3.88 $3.88 $3.88 $3.88 $3.88 $3.8836% to King World WILL NOT BE INCLUDEDCash Flow $3.88 $3.88 $3.88 $3.88 $3.88 $3.88 $3.88 $3.88 $3.88 $3.88

3 Yr. DCF $8.635 Yr. DCF $12.55

Values at Actual Rates ($MM)Year

1 2 3 4 5 6 7 8 9 10 Gross Value $3.23 $3.23 $3.23 $3.23 $3.23 $3.23 $3.23 $3.23 $3.23 $3.2315% Agency Commision ($0.48) ($0.48) ($0.48) ($0.48) ($0.48) ($0.48) ($0.48) ($0.48) ($0.48) ($0.48)Net Value $2.74 $2.74 $2.74 $2.74 $2.74 $2.74 $2.74 $2.74 $2.74 $2.7436% to King World WILL NOT BE INCLUDEDCash Flow $2.74 $2.74 $2.74 $2.74 $2.74 $2.74 $2.74 $2.74 $2.74 $2.74

3 Yr. DCF $6.115 Yr. DCF $8.88

12

Game / License Values

Mobile Games Online GamesYear Year

Revenues 1 2 3 4 5 Revenues 1 2 3 4 5 WOF Deluxe $4.8 $4.4 $4.4 $4.4 $4.4 Online Games (1) $0.8 $0.8 $0.9 $0.9 $1.0WOF for Prizes 0.6 0.0 0.0 0.0 0.0 Encore Retail 0.3 0.3 0.3 0.3 0.4Jeopardy 1.1 0.8 0.8 0.8 0.8 Total Revenue $1.1 $1.2 $1.2 $1.3 $1.3Intl WOF 0.8 0.8 0.8 0.8 0.8Intl Jeopardy 0.1 0.1 0.1 0.1 0.1 Costs

Total Revenue $7.4 $6.1 $6.1 $6.1 $6.1 Development 0.2 0.2 0.2 0.2 0.2Total Costs 0.2 0.2 0.2 0.2 0.2

CostsDevelopment 0.3 0.3 0.3 0.3 0.3 Cash Flow $0.9 $0.9 $1.0 $1.0 $1.1Porting 1.0 1.0 1.0 1.0 1.0Backfill 0.1 0.1 0.1 0.1 0.1 3 Yr. DCF $2.1

Total Costs 1.4 1.4 1.4 1.4 1.45 Yr. DCF $3.2

Cash Flow $6.0 $4.7 $4.7 $4.7 $4.7(1) Includes Wheel of Fortune, Jeopardy! and Rock 'N' Roll Jeopardy!

3 Yr. DCF $11.6

5 Yr. DCF $16.3

Game Show License

Historical GSN License fees

2001 2002 2003 2004 2005 2006 2007$3.75 $0.44 $0.01 N/A $1.78 $0.02 $0.02

PV of 3 years at average $2.23PV of 5 year at average $3.24

13

Power of 10 – Half-Hour Strip Series (Greenlight Model)($ IN THOUSANDS)

Assumptions

Cash License Fees

Per broadcast wk. $250 $275 $350 $500 $550Broadcast Weeks 52 52 52 52 52

13,000 14,300 18,200 26,000 28,600

Barter Revenue (2 National / 5 Local)Household Rating 2.5 2.5 2.5 2.5 2.5 Household CPM $4.02 $4.02 $4.02 $4.02 $4.02Demo CPM (W 25-54) $15.46 $15.46 $15.46 $15.46 $15.46CPM Growth 0.0% 0.0% 0.0% 0.0%

Units 1,040 1,040 1,040 1,040 980

Production CostsWeekly Production Cost Incl. Host 5.0% ($425) ($446) ($469) ($492) ($517)Strip Weeks 39 39 39 39 39 Total Season ($16,575) ($17,404) ($18,274) ($19,188) ($20,147)% Increase Assumed 5.0% 5.0% 5.0% 5.0%

Allocated Overhead (75% Rate capped @ 26 wks) ($90) ($95) ($99) ($104) ($109)

1 2 3 4 5 TotalNumber of weeks 39 39 39 39 39 195

RevenuesCash License Fees 13,000 14,300 18,200 26,000 28,600 100,100 Net Ad Sales, Product Integration and Sponsorship 10,260 10,385 10,482 10,589 9,978 51,694 Sponsorship / Tradeouts - - - - - - Promotional Fees 2,565 2,596 2,621 2,647 2,495 12,924 International Revenue $0 - - - - - - Total Revenues 25,825 27,281 31,303 39,236 41,073 164,718

CostsProduction Costs (16,575) (17,404) (18,274) (19,188) (20,147) (91,587) Start Up Cost ($800k), Presentation & Pilot ($1.0m) (1,800) - - - - (1,800) Marketing (5,000) (4,500) (4,500) (4,500) (4,500) (23,000) Residuals - Domestic 3.5% (975) (1,009) (1,044) (1,081) (1,119) (5,228) Releasing - Domestic Syndication (Standard Def. only) 5.0% (460) (483) (507) (533) (559) (2,542) Research/Other (150) (125) (125) (125) (125) (650) Participations - 25% MAGR Davies 10/10/10 - - (1,026) (1,235) (1,308) (3,570) Total (24,960) (23,521) (25,477) (26,662) (27,758) (128,378)

Profit (Loss) before Overhead 865 3,760 5,826 12,575 13,314 36,340

Production Overhead (Capped @ 26 weeks) (2,340) (2,457) (2,580) (2,709) (2,844) (12,930)

Profit (Loss) after Overhead (1,475) 1,303 3,247 9,866 10,470 23,410

Rate of Return Before Overhead 71%Rate of Return After Overhead 37%

5 Yr. DCF $20.2

14

Game Show License (All You Can Eat)

YearTitle Customer 1996 2000 2001 2002 2003 2004 2005 2006 2007 Minimum Maximum

$1.98 BEAUTY SHOW, THE GSN $42,000 $267 $273 $42,000 $42,000$100,000 PYRAMID GSN $1,080,000 $540,000 $820 $540,000 $1,080,000$20,000 PYRAMID GSN $2,000 $3,500 $267 $273$25,000 PYRAMID GSN $408,500 $3,000 $408,500 $408,500ALL NEW DATING GAME, THE GSN $5,250 $500 $800 $273BULLSEYE (1980) GSN $500CAMOUFLAGE A&E $810,000 $540,000 $540,000 $540,000 $810,000DATING GAME, THE (1965-PRESENT) GSN $5,250 $500 $800 $273GONG SHOW, THE (1976 SERIES) GSN $3,750 $2,750 $800 $273HOT POTATO GSN $22,750JEOPARDY GSN $783,000 $6,000 $710,700 $710,700 $783,000JOKER! JOKER!! JOKER!!! GSN $30,250 $1,000 $267 $273 $30,250 $30,250JOKER'S WILD GSN $30,250 $1,000 $267 $273 $30,250 $30,250NEW TREASURE HUNT, THE GSN $267 $273NEWLYWED GAME, THE (1985 - 89) GSN $399,875 $851,250 $750 $423,000 $525,000 $10,370 $820 $423,000 $851,250NEWLYWED GAME, THE (1996 - 99) GSN $131,375 $131,375 $131,375PYRAMID (2002) ABC Family $2,894,118 $2,340,000 $2,340,000 $2,894,118ROCK & ROLL JEOPARDY! GSN $78,000 $78,000 $78,000RUCKUS GSN $8,125RUSSIAN ROULETTE (SERIES) TAI SENG $9,880THREE'S A CROWD (1979) GSN $9,750 $267 $273TIC TAC DOUGH GSN $40,500 $1,500 $800 $4,098 $40,500 $40,500WHEEL OF FORTUNE GSN $703,500 $8,195 $703,500 $703,500WHEEL OF FORTUNE 2000 GSN $3,375

Total $810,000 $540,000 $3,779,375 $4,293,368 $2,361,125 $423,000 $1,775,700 $15,172 $26,271 $6,018,075 $7,882,743

Year1 2 3 4 5

$6,950,409 $6,950,409 $6,950,409 $6,950,409 $6,950,409

5 Year NPV $22,494,753

NOTE: Includes only dollar values >$30K.

15

Appendix B: GSN / FUN Overview

16

• FUN is expected to achieve ~$12M in cost synergies through full ownership by Liberty (i.e. overhead in head office, FunSports integration)

• Without incremental synergies with GSN, Liberty would achieve a negative return over 6 years on its cumulative investment in FUN Technologies

Required Return and Implied Incremental ValueRequired Return and Implied Incremental ValueInvestment DetailInvestment Detail

Investment RationaleInvestment Rationale

• On March 10, 2006, Liberty Media purchased 53% of FUN Technologies for an aggregate cash consideration US$194.5M at transaction date

• On June 21, 2007, Liberty Media made an offer to purchase all of the remaining shares of FUN (TSX: FUN / AIM: FUN) for the cash purchase price of GBP 1.635 per share (4% premium over June 21 closing price) or total investment of~ $97M

Cross-Promotion /

New Content

• Promotion of FUN’s games and websites to drive users from Liberty’s entertainment properties/affiliates

• Create interactive games platform and expand participation TV leveraging Liberty’s distribution reach

Reduce Customer Acquisition/ Retention Costs

Expand Audience Base for Liberty’s Programming Assets

• Tap into GSN/Starz household reach to build user base and minimize FUN’s rising customer acquisition costs (due to attempts to build scale to cover development costs – i.e. increased cost of prizes, events, marketing)

• Partner with Liberty’s advertisers to share marketing and promotional costs

• Leverage FUN Sports (skews younger male) and Casual Gaming assets (skews younger female) to create new content targeted at these demographics

• Increase advertising directed at younger audience

($ in thousands)

2006E 2007E 2008E 2009E 2010E 2011E

Total Revenue $47,092 $74,440 $91,500 $115,450 $149,558 $194,343Recurring EBIT (25,320) (14,596) 12,686 11,131 28,120 50,077Free Cash Flow ($4,514) $11,741 $19,511 $38,739 $55,048 $76,1279.1% 8.2% 23.2% 28.8% 33.0%

Liberty Investment (194,500) (97,021)

Net Cash Flow ($196,802) ($85,281) $19,511 $38,739 $55,048 $76,127

IRR (10.1%)

Source: CIBC Equity Research (6/25/07)

FY Ended December 31,

0.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

0.0% (10.1%) (6.6%) (3.3%) (0.4%) 2.4% 5.0%

2.5% (8.7%) (5.3%) (2.1%) 0.8% 3.5% 6.1%

5.0% (7.4%) (4.0%) (0.9%) 1.9% 4.6% 7.1%

7.5% (6.1%) (2.8%) 0.2% 3.0% 5.6% 8.1%

10.0% (4.8%) (1.6%) 1.4% 4.1% 6.7% 9.1%

Ad

dit

ion

al C

ost

Sav

ing

s

Revenue Enhancement

Liberty Media and FUN Technologies Inc.

17

• Provides real-time information on the Internet, including live odds, major line move alerts, urgent messages, injury reports and statistical reports

• 2006E Revenue: $9.5M

Product Offering OverviewProduct Offering Overview

• FUN Technologies, which is 51% owned by Liberty Media Corporation, is a leading online casual gaming provider with full-service offerings in the sectors of skill-based games and fantasy sports

• Provides private-label gaming systems and services to some of the world’s largest online entertainment groups, including AOL, MSN and NASCAR.com

• Two business divisions: FUN Games and FUN Sports• FUN Games division is comprised of wholly owned skill-gaming

subsidiaries, SkillJam and WorldWinner, as well as Octopi, FUN’s mobile and online multiplayer game developer

• FUN Sports provides content, games and fantasy sports leagues, real-time sports statistics, as well as NASCAR-related and other fantasy sports games to consumers and corporate partners

Company OverviewCompany Overview

Investment Detail – Liberty Media and the “New FUN”Investment Detail – Liberty Media and the “New FUN”

• On March 10, 2006, FUN Technologies plc (“Old FUN”) and FUN Technologies Inc. (“New FUN”) announced the completion of the Scheme of Arrangement (the “Scheme”) involving Liberty Media

• Old FUN has become the wholly-owned subsidiary of New FUN and Liberty indirectly owns approximately 51% of the outstanding common shares in New FUN on a fully-diluted basis

• As part of the transaction, Liberty invested US$50 M in the Company implying a current valuation of US$98 million

• Leading site for fee-based skill games, offerings include pay-for-play/subscription products such as online games, tournaments, and downloadable deluxe games

• Games: Zuma, Bejeweled 2, Solitaire, Lingo, Bookworm• 2006E Revenue: $16.3M• User Metrics: 567K monthly uniques, Avg. 20 pages and 15 min. per

unique visit, 58% Female, 16% under age 35, 70% under age 50

• Avg of 350K games played daily, hosts 10M+ games with millions in awards and prizes in five categories: Card, Word, Arcade, Strategy and Sports

• 2006E Revenue: $9.6M• User Metrics: 1.4M monthly uniques, Avg. 79 pages and 55 min. per

unique visit, 60% Female, 13% under 25, 82% under 45

• Developer specializing in mobile and web-based multiplayer games (blowfish, bowling, shuffleboard)

• Clients include Nokia, Paramount, Sony Ericsson, T-Mobile, SBC, Nike, Pepsi, Adidas and Blockbuster.

• Consistently among the nation's most-visited sports sites• One-stop shop for fantasy players; games, league mgmt tools, live

stats, and comprehensive fantasy sports• Provides turn key fantasy sports products to AOL.com,

NASCAR.com, PGA.com, NFLPA.com, and NBA.com• 2006E Revenue: $15.5M• User Metrics: 470K monthly uniques, Avg. 59 pages and 49 min. per

unique visit, 74% Male, 42% under 35, 80% under 50

• Leading fantasy sports operator, has operated games for USA TODAY, Sports Weekly, The Hockey News, The Golf Channel and The Sporting News, MSNBC, Snap and The Lottery Channel

• Offers baseball, football, basketball, hockey, golf and auto racing games that can be played via phone, mail, email, fax and the Internet

• One of oldest and largest providers of predominantly fee-based fantasy sports games (NASCAR race challenges, College Football full-season and College Basketball Tournament challenge)

• Subscription based games also provide easy access for free play

FUN Technologies Inc. (TSX: FUN / AIM: FUN)

18

Toronto Stock Exchange Performance (1/24/2006 to Present)Toronto Stock Exchange Performance (1/24/2006 to Present)

Financial PerformanceFinancial Performance Key DevelopmentsKey Developments

June 2002 • Originally founded as CES Software plc

December 2003 • Listed on the Alternative Investment Market (AIM) of the LSE

July 2004 • Acquired SkillJam Technologies Corporation for US$8 million

October 2004 • Listed on the Toronto Stock Exchange (TSX) • Announced £20 million (C$46 million) financing increasing to C$55

January 2005 • Changed company name to FUN Technologies plc

February 2005 • Acquired Don Best Sports for US$47 million

June 2005 • Acquired all the assets of Fanball Interactive, LLC

January 2006 • Acquired all the assets of Octopi, Inc., a company focused on web-

based and mobile gaming March 2006

• Liberty Media Corporation acquired 51%; reconstituted as FUN Technologies Inc.

• Acquired WorldWinner Inc. for US$23 million April 2006

• Acquired all the assets of Fantasy Sports, IncMay 2006 – September 2006

• Partnered with GSN to televise first-ever worldwide web games championship (awarded million dollar grand prize)

August 2006 • Acquired CDM Sports

November 2006 • Launched SCRABBLE Cubes to have all-time highest number of

cash players competing in tournaments on Worldwinner site

.

($ in millions)

2004A 2005A 2006E 2007E

Revenue $1,886 $25,158 $47,146 $62,462Growth Rate NA 1233.9% 87.4% 32.5%

Gross Profit $1,130 $19,072 $28,315 $34,895Margin 59.9% 75.8% 60.1% 55.9%

EBITDA ($4,563) $552 ($6,173) $9,104Margin % (241.9%) 2.2% (13.1%) 14.6%Growth Rate NA 112.1% (1218.3%) 247.5%

EBIT ($5,962) ($12,420) ($28,179) ($10,216)Margin % (316.1%) (49.4%) (59.8%) (16.4%)

Net Income ($5,080) ($3,950) ($4,613) $5,152Margin % (269.4%) (15.7%) (9.8%) 8.2%

FY Ended December 31,

Source: Projections per Canaccord Adams and CIBC Equity Research

FUN Technologies Inc. (TSX: FUN / AIM: FUN)

19

• FUN Sports assets skew towards younger males – Leverage asset to create new GSN content targeted at this demographic– Increase advertising directed at younger audience (GSN watcher median age: 50)

• FUN Casual Gaming assets (Solitaire, Bejeweled, etc.) skew toward female gamers– Leverage asset to create new GSN content targeted at younger females demographic– Further develop advertising directed at female audience

• FUN Technologies faces rising customer acquisition costs as it attempts to build scale to cover development costs – i.e. increased cost of prizes, events, marketing

• Tap into GSN’s reach of 60 million households to build user base while minimizing customer acquisition costs

• Partner with GSN advertisers to share marketing and promotional costs

Reduce Customer Acquisition/Retention Costs for FUN

Expand GSN Audience Base

• Promotion of FUN’s games and websites on GSN programming and advertising and GSN programs on FUN’s sites and events

• Create interactive games platform leveraging GSN distribution reachCross-Promotion /

New Content

GSN and FUN Combined Potential Value