M e d i a s e t G r o u p

October 2004

Digital Terrestrial TV | Update on DTT Development in

DigitalDigital Number of DTT multiplexes (every multiplex can host 4-6 channels) NetworksNetworks

6 1 mux 5 § Decoders Decoders 4 3 3 § 2 mux 2 New New 1 mux ChannelsChannels §

§ 1 mux Italy Spain Finland Norway InteractivityInteractivity United Kingdom Germany

PayPay--perper--ViewView

| 2 | MEDIASET | Update on DTT Development in Italy

§ Mediaset owns the transmission DigitalDigital NetworksNetworks infrastructure to broadcast § The network, is made up of over 1800 sites nationwide (4500 transmitters), Decoders Decoders ensuring a 99% analog coverage of the country § A minimum investment required to NewNew ChannelsChannels switch from analog to digital Population Coverage transmission > 63%, 75% by end of 2004 § Mediaset is already covering over > 63%, InteractivityInteractivity 63% of the country with one Digital 70% by end of 2004 Multiplex > 57%, § Total Estimated Investment 2003 - PayPay--perper--ViewView 2004: 70ml€ > 63%, 75% by end of 2004

| 3 | MEDIASET | Update on DTT Development in Italy

§ 720.000 MHP Decoders already sold in nearly 6 months DigitalDigital NetworksNetworks § Price between 0 € and 199€ (net of 150€ State Contribution) § No more State subsidies available in 2004

DecodersDecoders 700000

600000

500000 NewNew Channels SOLD OUT Channels 400000

300000

InteractivityInteractivity 200000

100000

0 Pay-per- View Pay-per- View Feb. Mar. Apr May. Giu Jul Sep Oct.

| 4 | MEDIASET | Update on DTT Development in Italy

Estimates on DTT Set-up-Box Penetration in Italy DigitalDigital NetworksNetworks

93% 96% 99% 90% 90%

DecodersDecoders

New 40% New 35% ChannelsChannels 28% 28%

22% 14% 19% 20% 5% 10% 15% 17% 12% InteractivityInteractivity 7% 2004 2005 2006 2007 2008 2009 2010

ScenarioSwitch Ottimisticooff end 2006 ScenarioSwitch Intermediooff end 2010 ScenarioSwitch Pessimistaoff end 2012

PayPay--perper--ViewView

Source: Booz| Allen| Hamilton

| 5 | MEDIASET | Update on DTT Development in Italy

21 Channels on DTT DigitalDigital § NetworksNetworks § Additional 5 New Channels by Year-end

§ 7 GENERALISTIC CHANNELS DecodersDecoders

§ 2 SPORT CHANNELS

NewNew § 3 MUSIC CHANNELS VJ TV ChannelsChannels

§ 5 NEWS CHANNELS

InteractivityInteractivity § 1 INFO/CINEMA CHANNEL

§ 2 PUBLIC SERVICE CHANNEL RAI DOC RAI UTILE

Pay-per- View Pay-per- View § 1 EDUCATIONAL CHANNEL

| 6 | MEDIASET | Update on DTT Development in Italy

Broadcaster Mux Channels DigitalDigital Broadcaster Mux Channels NetworksNetworks MUXMUX RAIRAI 11 RAIRAI UNOUNO RAIRAI DUEDUE RAIRAI TRETRE RAIRAI DOCDOC RAIRAI UTILEUTILE DecodersDecoders MUXMUX RAIRAI 22 RAIRAI NEWSNEWS 2424 RAIRAI SPORTSPORT NOTIZIENOTIZIE RAIRAI EDUEDU MUXMUX RTIRTI RETERETE 44 BBC WORLD NewNew BBC WORLD 2424 OREORE TVTV ChannelsChannels CLASSCLASS NEWSNEWS VJTVVJTV COMINGCOMING SOONSOON TVTV MUXMUX DD--FreeFree CANALECANALE 55 InteractivityInteractivity ITALIA 1 LALA CHAINECHAINE INFOINFO SPORTSPORT ITALIAITALIA RADIORADIO ITALIAITALIA TVTV MUXMUX--TELECOMTELECOM LaLa 77 MTV PayPay--perper--ViewView MTV

| 7 | MEDIASET | Update on DTT Development in Italy

DigitalDigital § launch a new Free Kids Channel together NetworksNetworks with Turner Broadcasting: “on air” before Christmas

UK - Audience Share (Multichannel free+pay) DecodersDecoders (Daily Breakdown in min. per Day)

Intrattenimento 00:36 Others Theme 8% Bambini 00:16 News 1% Entertainment NewNew 4% 38% Sport 00:10 ChannelsChannels Documentary Cinema 00:09 6% Music Musica 00:06 7% InteractivityInteractivity Documentari 00:05 News 00:03 Cinema 9% Canali specialisti 00:01

Altri 00:09 PayPay--perper--ViewView Sport 11% 00:00 00:07 00:14 00:21 00:28 00:36 00:43 00:50 Kids 17% Source: BARB, Annual Report BSkyB, Analisi BAH

| 8 | MEDIASET | Update on DTT Development in Italy

ENTERTAINMENT SPORT NEWS DigitalDigital NetworksNetworks

DecodersDecoders FILM / FICTION GAMING SERVICES / PUBLIC UTILITY

NewNew ChannelsChannels

InteractivityInteractivity ADVERTISING COMMERCE BETTING

PayPay--perper--ViewView

| 9 | MEDIASET | Update on DTT Development in Italy

INNOVATIVE BUSINESS MODEL Digital Digital § No subscription required NetworksNetworks § Low Price per Unit (from 3€ per match) § Open Platform

DecodersDecoders § Nagravision supplier of Conditional Access Technology

1 Buying pre-paid card in the Kiosk NewNew ChannelsChannels

4 Periodic Premium Change of 2 Watching Premium the card Expirying Content being InteractivityInteractivity data charged

3 Recharging card (on-line / off line) PayPay--perper--ViewView

1234 5678 9012

| 10 | MEDIASET | Update on DTT Development in Italy

Teams Supporters (ml) Rights Investments DigitalDigital NetworksNetworks

JUVENTUS 9,7

DecodersDecoders 5,0 3 seasons + pre-emption

INTER 4,7

New New ROMA 2,0 3 seasons + pre-emption ChannelsChannels 118 ml€ SAMPDORIA 0,6

InteractivityInteractivity ATALANTA 0,4 3 seasons MESSINA 0,4

PayPay--perper--ViewView LIVORNO 0,3

| 11 | MEDIASET | Update on DTT Development in Italy

SKY Italia - Satellite Rosso Alice - ADSL Fastweb - Cavo PPV Mediaset DTT

4 Option “Tutto Calcio” 4 Option “Tutto 47,00€ per months Calcio” SKY (564,00€ per year) 99,00€ per year

4 Option “Sport”, only + Premium game, 32,00€ per month 371,00€ yearly (384,00 € per year) subscription

4 244,00€ yearly 4 384,00€ yearly flat 4 371,00€ yearly 4 No subscription subscription subscription subscription + + + + from 3€ per 12,00€ - 15,00€ or 2,50 € per match 12,00€ - 15.00€ match 18.00€ per match per match

| 12 | Digital Terrestrial TV - Revenue Stream Model -

| 13 | MEDIASET | Revenue Stream in the Analog Context

FTA COMMERCIAL TV MULTIMEDIA OTHER NON TV ACTIVITIES

3 FTA generalistic channels Resale of 4 Theme Channels Publieurope (Pan-european funded by advertising to Pay TV platform Advertising)

Homeshopping Advertising on Teletext Billboards in the stadium

Internet Network operations Services

Content Re-sale to Telecom Others Operator

Brand Extension

| 14 | MEDIASET | Revenue Stream in the Future DTT Context

FTA COMMERCIAL TV MULTICHANNEL INTERACTIVITY PPV NETWORK OPERATOR 3 FTA Theme Channel Interactive and Premium Content Renting of generalistic funded by Enhanced Access through: Spectrum on channels funded targeted advertising • Pay-per-View Digital by advertising advertising • Pay-per-Time Transmitting (Kids Channel) Revenue Sharing • Pay-per- Category Network to non- from captive content Transactional provider MULTIMEDIA Services: Resale of 4 Theme Channels • Betting OTHER NON TV ACTIVITIES to Pay TV platform • Commerce • Banking Publieurope (Pan-european Advertising on Teletext • … Advertising)

Internet Exchange Fee Billboards in the stadium with Telecom Content Re-sale to Telecom Operator Network operations Services Operator Others Brand Extension

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