Corporate Presentation

SoMedia Networks, Inc.

Executive Summary

SoMedia is a ground breaking digital media company

founded in February of 2006. Weve raised over $4.8 million to date.
We have the production of video for TV, news and B2B markets. Were able to produce video at massive scale and global reach while undercutting competitors by 60% or more and maintaining margins of 50% +. We expect to take off in 2011 driving us to cash flow positive with 30% month over month growth and revenues of $1 million plus a month by Q4.
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commoditized

revenues

Executive Summary

video is a key component of e-commerce + news today

$1.5 billion in local demand e-commerce
Created by local SMB directory, website and mobile marketing

100% growth in past 12 months news video

News video consumption experiencing enormous growth

but.
Expensive, Complicated, Local, Not Scalable, Hard to Find
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Market Entry Timing

DEMAND for Internet Video

85% of males and 68% of females now watching online video weekly: a 15% and 27% increase over 2009

DEMAND for News Video

Consumption of online video news clips doubled over the past 12 months, to 565 million video views Hours of local TV news per day by is now 5 hours a day up 25% since 2008

YouTube is now #2 search engine behind

Google.

A video result is 50 times more likely to

appear on page one of a Google search query than a web page.

COLLAPSE of TV News Model

Local news is too expensive to produce

Web video is now a must have marketing tool for online businesses:

33% of online retailers plan to add video

to their sites, making it a higher priority than any other advanced feature.

Staffing levels are shrinking and budgets falling:

41.9% of news budgets decreased in 2009, 65% in 2010

67% of media execs identified the use of online video as a primary focus of their digital marketing campaigns

Percentage of US TV stations reporting a profit

from news is at a 16 year low

eCommerce Video Gets Results

Viewers who take action after watching video

52%

Viewers who visit a store after watching video

Increase in clicks for more information after watching video Increase in phone calls to businesses after adding video

30%
30-40% 16-20%

Local SMB Video Demand

CAGR 2007-2012:

167.8%
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SoMedia Networks Business Opportunity Google did it.eBay did it.Amazon did it.eTrade did it..

SoMedia is doing it to Video Production

Use the Internet to streamline processes, create scale, and provide a low cost standardized product Create a low cost based business model Revenue-sharing model gives video producers upside participation while
driving down operating costs

Enable an underutilized and under valued workforce Pro-sumer video producers who have the skills and equipment but no
professional framework

SoMedia Networks Model

Anyone can make 10 or even 50 videos but how do you produce thousands a month with consistency and quality at a low price?

Key Concept: Control the User + Control the Process

otherwise all youre creating is low value user generated content

BBN3 Platform is a proprietary eco-system. SoMedia controls who is allowed to participate and how. Platform creates professional trust, reliability & offers a guarantee of

performance Focuses on centralized process control, quality control and job specification creation Controls who is able to create what content through skills assessment and management Operates locally in 24 markets today. Globally starting in 2011
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SoMedia Networks Model - Videographers

2500+ Ranked and Rated Pro-sumer Videographers
Videographers organized by ability System is designed to reward videographers ($$) that create the best work. Start at VJ1 level. VJ2s, VJ3s and VJ4s produce content for businesses & broadcasters. Average B2B production job pays videographer $22 to $35 an hour Recruit, Recruit, Recruit Recruiting is a process tens of thousands of videographers looking for work Craigslist Film schools, Journalism programs Word of mouth

SoMedia Networks Cloud Based Production

Client
Account Management Project Specs Business Rules

Videographer Program
Level 1 Level 2 Level 3 Level 4

Assignment Editors
(News) Level 1 Level 2 Assignment Creation

BBN3 Local Marketplace & Production Hubs

High Speed Internet Cloud

Production Management

Production and News Editors

Level 1 Level 2 Level 3

QC / QA

Distribution
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SoMedia Networks Business - B2B B2B On Demand Video Production Services

Turns B2B video into a product rather than a creative process Standardized pricing from $499 to $2499 average of $1299 Up to 60% lower cost than local competitors. Margins of 50% to 60% Over 800 partners/resellers signed to date across North America Web design cos, web development cos , marketing cos and agencies Channel partnerships drive sales scale and volume. Early deals in process: Partners with inside sales teams No elephant hunting mid sized opportunity focus Webnames, IFX Medical, Graphically Speaking Planned scale up to 1000 videos/month by Q4 2011

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SoMedia Networks Business News First on demand news production service providing low cost news coverage to broadcasters
Multi format, expanded HD, SD, Web and Mobile content approach SoMedia owns all content produced provides broadcasters with limited local license global news syndication (Reuters, AP, CNN model) library stock footage licensing (iStockPhoto, Getty model) Beta launched during Olympics. Broadcasters such as CHEK, CHCH, NBC Universal and affiliates of NBC and CBS accessed content. The President of NBC News told us they would encourage and support the development of an alternative to Reuters and AP. Currently producing content for CHEK News in Victoria and Global BC as phase one of operational rollout to continue across North America during 2011 Global rollout to begin Q4 2011

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SoMedia Networks Revenue Model

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Management and Advisors

George Fleming, CEO Over 20 years of Internet new venture development and financing experience; CEO of One Person Health (HealthPricer), Co Founder of eCharge Corp. Travis Moss, VP Sales & Business Development Former COO, and former VP of Sales and Business Development for The Internet Marketing Centre. Oversaw sales of $22 million/year.

Rick Schultz, CGA, Director Finance & Operations Tactical Corporation, Taleo Corporation, Pivotal Corporation
Amir Mirhosseini, VP Technology & Cofounder BCIT, BSc Computer Science UBC, Masters Computer Science (unfinished) Gosia Kamela, VP Production Highly Experienced Director, Editor, Producer, Associate Producer, Production Manager, and Post Production Coordinator Art Reitmayer, CA, Strategic Advisor Founder and CEO of Channel M, Former Vice President of Special Projects for Canwest Global, President and CEO of BCTV, CHEK-TV, CKRD, ITV
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B2B Industry Comparables

Competitor StudioNow was purchased by AOL for $36 million in January
StudioNow helps companies create, manage and syndicate online videos with customized workflows, powerful technology and a lot of personal attention

Related comparable Demand Media recently completed an IPO at a valuation of $1.2 billion. Goldman Sachs was the sponsor.
Demand Media, Inc. is known for being a so called content farm and creates extremely low cost online content (including video) using a large free lance producer workforce. The company has pioneered the use of measured consumer demand and predicted advertising driven ROI to determine what content it produces. It operates websites such as eHow, LIVESTRONG.COM and Cracked.

Related comparable ReachLocal completed an IPO in May raising $54 million with a valuation of $378 million. ReachLocal brings order to the fragmented local Internet by connecting
advertisers, publishers, and creative solutions providers together on one platform.........through a dedicated force of local Internet Marketing Consultants.

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Capitalization and Financing Plans

Summary of Capital Investments (As of July 12, 2010) Total Dollars Raised to Date $5.2 Million

Financing & IPO Plans

SoMedia is hoping to seek a public listing through an IPO Company has retained the services of an experienced investment banker to assist in managing a go public process, commenced preparing for an audit, and begun working with securities counsel
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George Fleming CEO gfleming@somedia.net Important URLs:

BBN3 Network: http://bbn3.com BBN3 Video: http://bbn3video.com News Showcase: http://bbn3news.com/showcase

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