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SEMAPHOREDTAX & BUSINESS SOLUTIONS

Philip DeFranco Evolves, Prepares Second Act as DeFranco Creativeis Acquired by Discovery Communications' Revision3

Semaphore Tax and Business Solutions, business advisor to DeFranco Creative,bullish on opportunities for YouTube entertainers as major media companiesseek stronger footholds in the highly creative user-generated content space

Irvine, CA (May 31, 2013) - Semaphore Tax and Business Solutions, a leading tax andaccounting firm with specialization in YouTube entertainers, announced today that itprovided business advisory services to DeFranco Creative in its sale to Revision3.Financial terms were not disclosed.

As part of the acquisition, DeFranco, the wildly popular YouTube host and producer, willhimself become part of the Revision3 programming leadership team as a Senior VicePresident of Phil DeFranco Networks and Merchandise. Discovery Communications justfinished celebrating the one-year anniversary of its acquisition of Revision3 with recordaudience and stream growth and demonstrates the company's ability to attract anddevelop the Internet's top talent.

"The sale of DeFranco Creative to Revision3 results in tremendous opportunities for theentire DeFranco team, allowing them access to increased distribution opportunities andproviding a bridge for multiple entertainment platforms," said Michael Bienstock ofSemaphore Tax and Business Solutions, who provided business advisory services toDeFranco Creative. "Traditional media companies are increasingly looking at YouTubesuperstars like Phil as they realize the ever-evolving potential of this industry."

In the last year alone, the YouTube industry has seen significant "Big Media" interestincluding Google's investment in Machinima, Time Warner's support of Maker Studios,and DreamWorks recent acquisition of Awesomeness TV. "Major media companies arerecognizing the charisma and authenticity of talent that was born on YouTube as onlinepersonalities continue to gain tremendous, highly desirable audiences," said Bienstock."Mainstream media will continue looking to acquire and develop strategic relationshipswith what were essentially hobbyists who have launched careers as a result of theirunique talents and appeal to the current generation of media consumers."

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