March 28th, 2007

This document is confidential and is intended solely for use by its original recipient for informational purposes. Neither the document nor any of the information contained in this document may be reproduced or disclosed to other persons without the prior written approval of Zattoo Inc.

Bringing TV to the PC

A new opportunity for advertisers

Web2com Breakfast

2

ZATTOO in a Nutshell

• TV will enter the internet, will change it and will be changed by it. Just as email and voice-over-IP has changed our communication.

• Broadband access (200 m users worldwide and growing), better video compression and peer-to-peer technology will make it possible.

• ZATTOO offers free and pay TV to end-users. A user will be able to choose from thousands of channels. First to computers, than to mobile phones.

• Free TV is financed from precisely targeted advertising when switching the channels and from consumers paying for content (pay-per-channel/show).

• Broadcasters and advertisers are Zattoo‘s business partners.

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Zattoo‘s promise to customer and partners

Broadcasters / Content providers

Consumers

Advertisers

•Best TV experience In the Internet

•Great content•Thriving community•Even ads are great (useful and personalized)

•Real exposure, ads are „seen“•Best of both worlds, combining TV formats with interactivity

•Extensive profiling of consumer base•Extensive reporting / feed back loops

•Lowest cost distribution•Additional commercial opportunities with subscriber models and premium ads

•Full protection of content rights through licencing model

4

User experience: clean, easy to use, consistent

• Users can choose from hundreds, in future from thousands of TV-channels

• They can create their personal TV world• Personal favorites• EPG links• Community of

friends with associated “Tribal viewing”, incl. program ratings, blogs, chat, etc.

• Simple, slick, just perfect

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Zattoo Swiss line-up

•7 national broadcasters (3 languages)•Top TV station of neighbouring countries•Selected international prime channels

•Further channels to be added in the coming months as part of the premium (paid) offering

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0

50,000

100,000

150,000

200,000

250,000

Avg. viewingtimeMinutes

Channel switchesThousands

Source: User Database

October November

Users

Viewers, last 4 weeks

Viewers, last week

Viewers, >100 min. viewing time

December January

104 116 105 140132 134 119 113 96 92 148 124106 106 126

89 98 120 173 239 272 283 1’240 1’485 1’35491 205 181 238

135

399

February

106

833

108

1’003

March

1’178

Zattoo growth curve in Switzerland overwhelming

20 channels

40 channels

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Zattoo population very attractive for advertisers

GenderGender

n = 986

16%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Female Male

Swiss population

AgeAge

n = 986

1%

17%

29%

21%20%

8%

4%

0%

5%

10%

15%

20%

25%

30%

35%

< 14 14 - 18 19 - 25 26 - 35 36 - 49 50 - 59 60 +

Swiss population(Rough approximation of age grouping)

LanguageLanguage

87%

7%2% 1% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

German French Italian English Other

Swiss population

n = 986

EducationEducation

n = 986

5%

14%

25%

18%

17%

14%

4%

0% 5% 10% 15% 20% 25% 30%

P rimary school

Secondary school

Aprenticeship

Gymnasium'

College (FH)

University

P hd / P ost-grad

Time in front of a computer per day (professionally)Time in front of a computer per day (professionally)

n = 986

40%

9%11%

15%

12%13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

> 5 hours 4-5 hours 3-4 hours 1-2 hours < 1 hour No businesscomputer

Time in front of a computer per day (privately)Time in front of a computer per day (privately)

n = 986

6% 7%

20%

49%

18%

0%0%

10%

20%

30%

40%

50%

60%

> 5 hours 4-5 hours 3-4 hours 1-2 hours < 1 hour No privatecomputer

Source: Schober Partners Group AG. Quantitative survey of Zattoo users.

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Ad format taylored to TV/Internet mix

5-7 Seconds Flash clip

Ads archive allows users to get back to an interesting ad after enjoying the desired TV show

Interactive zone allows user to trigger ad related action

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Zattoo advertisers can target their customers on several dimensions

Channel

Show (=channel+time)

Demographies

Behaviors

AgeGenderLocation

„Is passionate about sports“„Enjoys music shows“

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Contact

ads@zattoo.com