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AlgiersDecember, 2007

Presentation Document

Mobile TV in the Middle East and North AfricaHybrid Satellite/Terrestrial Solutions

This document is confidential and is intended solely for the use and information of the addressee.

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S2M’s Geographic Reach Key Milestones

Q3 2006: S2M commercial registration

Q4 2006: Arabsat participation in S2M

Q4 2007: Satellite and terrestrial infrastructure partners

Q3 2008: Launch of commercial services

Advantages of Satellite Based Mobile TV

Commercially and technically proven in Korea and Japan

Implementations in China, Europe, North America are coming

S-Band frequency availability (granted by Arabsat)

Offers opportunities for substantial economies of scale by sharing infrastructure among MENA countries

Ubiquitous coverage

Common programming, coverage and use

S2M will launch an S-band satellite capable of delivering mobile TV services to the entire MENA region

S2M will become the first mobile TV operator in the MENA region

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Satellite Mobile TV Infrastructure

S-band satellite solution is an efficient and proven way to deliver high quality broadcast media to mobile devices

Description

1. Broadcasting center packages and encrypts the content

2. Broadcasting center transmits the content via Ku-band to the satellite

3. Satellite transmits the content to approved mobile phones

– Via S-band to mobile phones in line-of-sight

– Via Ku-band to the gap filler network, which then transmits S-band signal to mobile phones not in line-of-sight

GPRS/EDGE/3G network provides return path for interactive services like Pay per View, Video on Demand, Music on Demand and Gaming

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Terrestrial Solutions Hybrid Satellite/Terrestrial Solutions

Spectrum Scarce UHF frequencies

Limited bandwidth

Wider bandwidth allowing higher number of channels

Costs High CAPEX for ground infrastructure

No economies of scale

Infrastructure and content costs are shared between several countries in the MENA region

Coverage Service is limited to network deployment area

Increasing coverage requires substantial costs

Coverage everywhere

Most efficient solution to cover rural areas

Roaming Networks in various countries are isolated Seamless mobile TV roaming within the

MENA region

Satellite based solutions present clear advantages for wide area coverage

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Key Milestones

03/2004: Mobile Broadcasting Satellite – MBSAT Launched

10/2004: Service launch in Japan by the Mobile Broadcasting Corp.

05/2005: Service launch in South Korea by Tu Media

Japan and South Korea pioneered mobile TV broadcasting in 2004 and 2005 using a hybrid satellite/terrestrial platform

(South Korea) (South Korea)

Tu Media received only S-DMB license from the Korean Broadcasting Commission (KBC) in 12/2004

Tu Media delivers mobile TV to all 3 South Korean mobile operators led by South Korea Telecom

Currently features a basic bouquet of 15 TV channels, 19 audio channels and one premium channel

More than 50 enabled devices

Tu Media received only S-DMB license from the Korean Broadcasting Commission (KBC) in 12/2004

Tu Media delivers mobile TV to all 3 South Korean mobile operators led by South Korea Telecom

Currently features a basic bouquet of 15 TV channels, 19 audio channels and one premium channel

More than 50 enabled devices

Registration fee: $20 Monthly subscription fee: $11

(special offers for 1 year commitment and for teens)

Pay per view: $2

Registration fee: $20 Monthly subscription fee: $11

(special offers for 1 year commitment and for teens)

Pay per view: $2

(Japan)(Japan)

Full radio licenses for satellite broadcasting, satellite and ground station awarded in 05/2004

Service initially targeted mostly vehicle receivers (in general mobile users on the go)

MBCo provides 37 audio, 8 video and 2 data channels

Digital TV broadcasts on mobile phones available since March 2006

Full radio licenses for satellite broadcasting, satellite and ground station awarded in 05/2004

Service initially targeted mostly vehicle receivers (in general mobile users on the go)

MBCo provides 37 audio, 8 video and 2 data channels

Digital TV broadcasts on mobile phones available since March 2006

Registration fee: $21Basic monthly charge: $3.5Individual content packages monthly

charge: ~$2.5-$18

Registration fee: $21Basic monthly charge: $3.5Individual content packages monthly

charge: ~$2.5-$18

400,000 subs in January 2006Over 1,170,000 in June 2007

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S-DMB standard 2-beam S-band satellite for Korea and Japan Manufactured by SS/Loral

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Key Milestones

10/2006: STiMi industry standard by SARFT

Q4 2007: Tests in the 6 cities hosting the Olympics

H1 2008: Satellite launch

08/2008: Mobile TV service launch

Main Characteristics

Market accounts 300mm mobile subscribers

China Multimedia Mobile Broadcasting (CMMB) is backed by the State Administration of Radio, Film and Television (SARFT)

Based on Satellite and Terrestrial Interactive Multiservice Infrastructure (STiMi) technology

25 video and 30 radio channels, plus some data channels

China is deploying a hybrid satellite/terrestrial platform to deliver mobile TV broadcasts across the country for the 2008 Summer Olympics

STiMi standard

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Key Milestones

10/2006: Eutelsat-SES joint venture

02/2007: DVB-SH specs approval by DVB Project

Q3/2007: DVB-SH tests in France

2008: Terrestrial commercial launch

Beg 2009: W2A Satellite launch

Main Characteristics

€130M investment in a 50:50 joint venture

Evolution of DVB-H

– Unlimited mobile TV

– Harmonized European frequency

– 27 video channels (15MHz bandwidth)

– Up to 90 video channels

In Europe, Eutelsat and SES formed a joint venture to deliver mobile TV broadcasting services over a hybrid satellite/terrestrial platform

DVB-SH standard 5-beam S-band payload for 5 European

countries Manufactured by Thales Alenia Space

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Key Milestones

1992: FCC allocated S-band spectrum for nationwide Satellite based Digital Audio Radio Service (DARS)

1997: XM and Sirius received approval to broadcast from FCC

2001/2002: Official launch of XM and Sirius

Main Characteristics

Sirius satellite radio launched Sirius Backseat TV delivered to video screens for rear-seat passengers

Featuring three best family channels for $6.99/month

Simultaneous access to over 130 Sirius satellite radio channels

Available in 7 select 2008 model vehicles

Sirius and XM are extending their satellite radio offerings to deliver mobile TV in North America

DARS standard XM: 2 satellites Sirius 3 satellites

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Mobile OperatorMobile Operator

Sources and packages mobile content for delivery to S-band devices

Delivers content package to mobile operator for resale to its customer base

The Value Chain

Content ProviderContent Provider

Promotes mobile TV service, registers customers and distributes S-band devices and S2M decryption keys

Manages customer care and collects service fees

S2MS2M

S2M’s Service Model

Repackages S2M content and prices it for its own customer base

Creates new video, audio or data content specifically for mobile format

Delivers mobile broadcast content to S2M

Repurposes traditional video, audio or data content for use in mobile format

Manages encryption and broadcast of content over satellite network

S2M service model presents an ideal solution for mobile operators and content providers

Deploys and operates mobile TV broadcasting platform

Best customer experience for end-users, widest reach for content providers, most efficient economic model for operators

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Customers will have access to a wide variety of mobile TV and value added services

S2M Services

Mobile TV Value Added Interactive ServicesWireless

Broadcasting

Standard programs

–Sports –News –Music –Kids

Premium content

–Sports–News –Music –Kids

Customized, selectable content

Mobile-specific format

Customized, interactive and selectable advertising

Voting

Gaming

TV Chat

Shopping TV

Travel TV

Education

Standard and Premium content broadcast to passive, non-cellular devices financed through subscription fees

Cellular Services Other wireless devices

Mobile Broadcasting

Premium Broadcasting

Wireless Pay-TVInteractive Media

Interactive Messaging

Interactive Advertising

Video and Music on Demand

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More than 50 S-band enabled handset models are currently commercially available and capable of receiving mobile TV programming

Latest S-band Enabled Mobile TV Handsets

LG SB190 (Jan 2007)Motorola MS 800 (Oct 2006)

Samsung P930 (Q1 2008)

Samsung B680 (Apr 2007)

Source: Tu Media web site; Web search

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Live mobile TV services will also be delivered to vehicular devices and portable devices creating an additional potential

In-car Device (MOA-H57 for MobaHo)

Pocket TV (MBR0501A for MobaHo)

…and potentially PSP stations, iPOD video, etc.

PC Receiver (Arion DB-300J)

Source: MobiHo web site; Arion web site; Web search