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Paramount Pictures Reaches $1 Billion Box Office

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Paramount Pictures Reaches $1 Billion Box Office 07.29.08 SECOND QUARTER DREAMWORKS: KUNG FU PANDA MTV: 2008 MTV MOVIE AWARDS NICKELODEON: THE MIGHTY B! A NOTE FROM PARAMOUNT PICTURES REACHES $1 BILLION BOX PHILIPPE DAUMAN OFFICE GROSS IN RECORD TIME Paramount Pictures crossed the billion-dollar mark was built on several box office hits, including in both international and domestic box office sales Cloverfield, Marvel’s Iron Man, Indiana Jones in record time this year, making it the first studio to and the Kingdom of the Crystal Skull and reach these milestones in 2008. This is the second DreamWorks Animation’s Kung Fu Panda. year that Paramount reached the billion-dollar Looking ahead, Paramount’s slate looks strong. threshold before any other studio. Paramount’s Over the course of the second quarter, like many In the third and fourth quarters of the year, films success in the first half of the year companies, Viacom was faced with an increasingly such as Tropic Thunder, DreamWorks challenging economic environment, which resulted TABLE OF CONTENTS Animation’s Madagascar: Escape 2 Africa, The in a slowdown in the advertising market overall. Curious Case of Benjamin Button and Paramount Pictures Reaches $1 Billion Box Office Nevertheless, the diversity of our revenue streams Gross in Record Time P 1 Revolutionary Road are expected to drive provides us with greater stability than others. In Rock Band Prepares For Its Second Tour P 1 audiences to the theaters. addition to consistently solid affiliate and ancillary Media Networks Continue International Expansion P 2 revenue growth, the increasingly solid performance Iron Man Bursts Into Theaters P 2 ROCK BAND PREPARES of our motion picture business continues to help us MTV Networks Plays To Win P 2 FOR ITS SECOND TOUR mitigate challenges on the advertising front. Nickelodeon and Viacom Consumer Products Launch New Merchandise for Kids and Tweens P 3 Rock Band 2 is set to make its debut on Xbox BET Awards Rules On Air and Online P 3 360 ™ this September. Introducing instruments Furthermore, we moved forward with several Mark Greenberg Named President and CEO of initiatives to improve efficiencies and protect our New Premium Entertainment Joint Venture P 3 with upgraded functionality and songs from operating margins. As a result, we delivered solid Nickelodeon Kids & Family Sites Score Record legendary rockers like AC/DC, Guns N’ Roses Breaking Month P 3 and Bob Dylan, Rock Band 2 builds on the double-digit growth in operating income and diluted Indiana Jones Continues to Captivate Audiences P 3 advanced technology of the original game. With EPS in the second quarter compared with the prior Baldwin Hills Returns to BET With A Bang P 4 more than 18 million songs purchased and year’s adjusted results. Nick-At-Nite Finishes The Second Quarter On Top P 4 downloaded since the launch of Rock Band in Paramount Vantage Consolidates Marketing and In our Media Networks segment, most of our Production Arms Into Paramount Pictures P 4 November 2007, Rock Band 2 will include a networks delivered solid ratings growth year-over- AtomFilms Relaunches As Atom.com And “Battle of the Bands” mode, allowing users to Partners with Comedy Central P 4 year and our overall ratings year-to-date were up challenge other bands to the ultimate rock Pos Or Not Challenges Users To Talk Openly five percent in their respective core demographics. About HIV/AIDS P 4 contest. Rock Band 2 will be available for Ratings Highlights P 5 Playstation ® 2, Playstation ® 3 and Wii™ That progress combined with our continued Statistical Information P 7 systems later this fall. investment in programming fueled our success in the advertising upfront. (continued P 2) Viacom . PULSE 07.29.08 P 1 A NOTE FROM P. DAUMAN IRON MAN BURSTS INTO THEATERS (continued from P 1) Paramount Pictures’ first release from Marvel In the Filmed Entertainment segment, Paramount Studios, Iron Man, has been a force in theatres has enjoyed terrific theatrical success so far this since its May 2nd opening. Showcasing its year. For the second year in a row, it generated MEDIA NETWORKS CONTINUE franchise potential, this big screen adaptation of more than $1 billion in box office both domestically INTERNATIONAL EXPANSION Marvel’s legendary super hero Iron Man is a major and internationally in record time. The studio also success with both critics and audiences alike. To holds the #1 spot in domestic market share. Iron Both MTV Networks and BET Networks continue date, this film has grossed more than $300 million Man, Indiana Jones and the Kingdom of the to use their brands to expand in international at the domestic box and more than $250 million at Crystal Skull and DreamWorks Animation’s Kung markets and establish new connections with the international box office. Fu Panda were all huge box office successes this viewers around the world. Paving the way for quarter. MTV Networks, Nickelodeon and Comedy Central continue to launch new networks around the Looking ahead, we have several strong titles globe. Nickelodeon Switzerland launched on April slated for release during the remainder of the year, 1st, Nickelodeon Africa and Nick Jr. Latin America starting with next month’s release of DreamWorks’ launched on July 1st, Nickelodeon Poland Tropic Thunder, which boasts an all-star cast launched on July 10th, Nickelodeon Arabia including several surprise cameos. Other major launched on July 23rd and later this year Comedy films include The Curious Case of Benjamin Central Hungary will premiere. Following in the Button and DreamWorks Animation’s Madagascar: tradition of other recent global network launches Escape 2 Africa. these channels will feature a combination of local programming and top-rated Nickelodeon and Overall, I am optimistic about our future growth Comedy Central shows. plans throughout Viacom. With new thinking and MTV NETWORKS PLAYS TO innovative approaches, the growth opportunities BET Networks’ recent launch of BET in the U.K. is WIN that exist across our organization – in affiliate also beginning to show encouraging momentum, When it comes to online casual games, MTV partnerships, consumer products, licensing, online with more than 760,000 viewers since it launched Networks’ portfolio is #1 in the U.S. and #2 in the and mobile platforms, games, movies, recreation, in March. The BET Awards ‘08 premiered in the world. Growth in the global games market is our increasingly important and fast-growing st U.K. on July 1 and proved to be a huge success projected to outpace every other media segment international businesses and, yes, advertising – with British audiences. The show, which has and online casual games will grow the fastest. are very exciting. These opportunities will allow us consistently been the most watched awards show Additionally, according to a recent MTV Networks to grow our core businesses and accelerate our among African American audiences, pulled in study, online casual gaming holds an exclusive plans to diversify our revenues. more than 100,000 viewers in the U.K., according place in the lives of gamers' of nearly all ages to BARB (Broadcasters’ Audience Research While we are in a period of transition, there has because it is both emotionally and physically Board). never been a better time to be in the content engaging. Over the next several years, MTV business. Consumers today have a voracious Networks intends to leverage its existing appetite for content and we have the capabilities properties and create original demo-focused game to satiate that hunger across every platform and offerings. MTV Networks is also building on its every geography. As the leading content leadership position in online casual gaming in the company in the world, with multiple strong brands, U.S. by moving rapidly into mobile games. Viacom has the vision, the opportunity, the people Nickelodeon’s AddictingGames has launched a and the assets to achieve our objectives and to series of mini-games called Qwikies exclusively on continue to grow value for our shareholders. the Verizon Wireless network. And the new iPhone “app store” features the South Park Imaginationland game and will feature games Philippe Dauman is President and Chief Executive Officer based on hit Paramount movies. of Viacom Inc. and serves on the company’s Board of Directors. Viacom . PULSE 07.29.08 P 2 BET AWARDS RULES ON AIR NICKELDEON KIDS & FAMILY AND ONLINE GROUP’S DIGITAL SITES SCORE RECORD-BREAKING BET brought together the best in entertainment, MONTH music and sports for BET Awards ’08, its annual “family reunion,” which debuted on Tuesday, June Nickelodeon Kids & Family Group’s portfolio of 24th to more than 3.6 million households and more digital sites registered its best month ever in June than 5.9 million viewers for a 4.2 coverage rating. 2008, according to comScore Media Metrix, The BET Awards ’08 premiere ranked as the #1 ranking as the #1 kids and family online cable telecast among black households, making it destination in visits and time spent. The group of the top performing cable telecast among black sites, which includes Nick.com, NickJr.com, The- audiences since the BET Awards ‘07. The BET N.com, Noggin.com, Shockwave.com, Awards ’08 is also currently the #1 award show on AddictingGames.com, and others, garnered 28.6 television among black audiences. The franchise million unique visitors in June, a 13 percent continues to be the top performing program in increase versus the same month last year. Visitors NICKELODEON AND VIACOM cable TV history among black audiences. In spent an average of 88.1 minutes on these sites in CONSUMER PRODUCTS addition, BET.com enjoyed its three highest traffic June, a 10 percent increase versus the previous LAUNCH NEW MERCHANDISE days in history on Tuesday, June 24, as well as month.
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