CONFIDENTIAL SCREEN GIANT EXECUTIVE SUMMARY - INDIA

                                    July 31. 2009               

       (All figures in US Dollars) 
 

SCREEN GIANT – PURPOSE:

The Screen Giant Media – Giant Advertising Screen business was established in Canada in 2004 with the intention of developing into an international Electronic Video LED (Light Emitting Diode) Advertising Board Business. Screen Giant Media Corp has been instrumental in the installation of Giant Screens throughout Canada.  Today there are real opportunities to become the leader in this facet of the Media business in India. Screen Giant has organized an expert team resident in India to develop the Screen Giant business in India together with Screen Giant’s experienced experts from Canada. Screen Giant executives have made several visits to India and are now poised to start operations.   
 

BACKGROUND:

Giant Electronic Video Boards (LED’s) are possibly the hottest outdoor advertising medium today. World wide the concept of giant TV screens has initially been introduced at sports stadiums around the world over the past few years. The boards transmit sports events in real time, display scores, advertisements and public service announcements. Internationally the most well known locations with outdoor Giant LED  Screens are at Times Square in New York, Piccadilly Circus in London, the gigantic Xicui Entertainment Complex near the site of the 2008 Beijing Olympic Games, and of course Las Vegas, Nevada. Giant outdoor LED screens are appearing worldwide in cities ranging from Moscow and other European capitals and to major locations throughout the Far East. 
 

GROUND FLOOR OPPORTUNITY:

The installation and operations of Giant LED Screens is still in its relevant infancy. Limitless profits are available to companies with the right team, connections, know how, experience and financing.  Screen Giant is ready to capitalize on its experience and expertise. Screen Giant invites your company as a financial participant to join with them in a potentially highly profitable Joint Venture in India.  
 

BE A PART OF THE FUTURE OF ADVERTISING:

Digital Video Billboards are the future of mass marketing advertising. Almost every other advertising medium other than the Internet recently has been in a decline. LED market penetration is still small worldwide and there are numerous opportunities for strong profitable growth at locations with huge traffic numbers in the specifically expanding Indian market, which appears to be very attractive at this time.  
 

THE OPPORTUNITY:

We believe that this could be a profitable potential business association for Future Capital Private Equity Group. Screen Giant India will be the specialist in the Giant Screen advertising media business, bringing to enormous population bases the latest in electronic advertising, with exceptionally bright giant screens (even in daylight) aimed at the highest traffic count locations. 
 

RECESSION PROOF BUSINESS:

The business is virtually recession proof, and should be immune and unhurt by the current (temporary) decline in economic activity.   In essence this has created some excellent opportunities to acquire sites at previously unavailable low rates.

WHY DO GIANT SCREENS CAPTURE VIEWERS’ ATTENTION?

There are several answers.

Firstly an enormous segment of the public has become used to giant sports screens at sports events of all kinds; secondly the development and marketing of TV’s and in recent years large screen TV’s for home use; thirdly the proliferation of  hundreds of millions of Cell phones, PCs, Lap-Tops, and Blackberry’s and so on, have turned generations of people (not just the young) into “Screen viewers”, and together with the proliferation of  video games has turned a huge and growing percentage of the populace into a “viewing civilization” who spend hours daily interactively in front of screens of one kind or another. In addition, even though access to a limitless number of TV channels is available at home to much of the viewing public, untold millions each week go to cinemas and large screen multi movie theatres.    
 

THE RESULT:

Our brains absorb electronic information at a lightning pace! Dull, static billboard advertising quickly becomes boring, and soon loses its impetus. Incredibly bright with the highest resolutions, Giant Screen advertising in real time with 10 advertisements or more appearing within a one minute cycle captures and retains the viewing public’s attention. 
 

THE MARKET:

Major multi-national and national corporations and leading international “Brands” of all kinds of products seek media outlets where they can capture the imagination of the consuming public. Giant LED Screens with incredible brightness, even in full sunlight, placed correctly in the highest traffic count locations in major cities are one answer to the search for the right and effective “media outlet” by major advertisers. 
 

CAPITAL INVESTMENT:

Capital investment in the Giant Screen business can potentially provide very significant returns. Initially Screen Giant is offering a 50% interest in its total Indian Operations for a commitment of an investment of $3,650,000 (Three million six hundred and fifty thousand dollars USD) in Giant Screens, on a screen by screen basis.  The company has developed a conservative Business Development Plan which envisages installing 20 Giant Screen LED billboards a year for five years in first class locations in major cities in India, for a projected total of 100 operating screens. Capital costs of such installations are estimated at $175,000 per screen, or $3,500,000 USD each year.  A total investment of $17,500,000 in 100 screens is projected to cumulatively earn up to $99,000,000 in the same period. A more aggressive program could produce larger financial rewards.  
 

PROFIT POTENTIAL - INDIA OPERATIONS:

We have conservatively created a 5 year program (illustrated in the pro-Forma Financial Statement attached) which we feel to be easily attainable, as follows

:

Our program is to install 20 billboards a year at strategic locations at a cost of $175,000 each, made up of $125,000 for each screen and $50,000 for installation, peripherals, computers, and power.  This program would require a capital investment in screens of $3,500,000 each year for an estimated investment of about $17,500,000 over five years or a shorter time period depending on the speed with which the program is proven successful.  
 

We feel that the potential Gross Revenue after the installation of the initial 20 Billboards in the first year will be over $9,000,000 rising to approximately $46,000,000 a year.  Board utilization is estimated to commence at around 60% and increase to 90% of capacity per year. 
 

Net Revenue, once initial screens are installed and operating, should commence at around $4.4 million per annum rising to $36 million by Year 5.  With expenses forecast at $5,000 per month per board the annual cost of operating each board will be around $60,000 per year or $1.2 million for 20 Screens.  
 

Installation of twenty Billboards under this program could therefore result in a net profit of $4,400,000 for the first full year of operations.  Thus if the program is successfully implemented at that rate we are projecting cash flow being available to repay the investment in the first 20 boards shortly after the first two full years of operations of each board. Alternatively once revenues reach a satisfactory level the financing of additional screens in future years could be largely financed through generated cash flow.  
 

There is also the possibility of leasing signs on long term leases, initially utilizing considerably less cash resources for capital costs.  
 

PRO FORMA FINANCIAL STATEMENTS:

Our Pro-Forma Financial Statements (all in US Dollars) attached give effect to the accumulation of net income over a first five year period before provision for interest on capital invested, depreciation, or provision for income taxes. 
 

SPECIFIC BUSINESS PROPOSAL:

We wish to start this association with you very easily, with a small financial commitment on your part.

We would suggest that your organization make a commitment to put up $150,000 US to be advanced to SGI in three separate draws of $50,000 each. SGI has already spent a similar amount on travel and business development in India. This would provide your company with a “buy in” to the business. The funds would be utilized towards part of the initial working capital in the amount of $10,000 for each of the first 15 screens.   
 

JOINT VENTURE:

We would suggest a Joint Venture between FC and SGI to be formalized by a mutually to be agreed upon comprehensive Joint Venture Agreement.  
 

MANAGEMENT:

Our company Screen Giant India Private Limited (“SGI”) will manage the whole business, more specifically it will:  
 

1. Negotiate and submit the chosen locations to Future Capital Private Equity (“FC”)                   for participation on a site by site basis.
2. Arrange for the acquisition of the locations by Purchase, or Long Term Lease with options to renew or otherwise, as appropriate in the circumstances.  
3. Arrange for the permitting, building of each sign, its installation, and operation.
4. Contract with advertising agencies and clients directly
5. Arrange for all Media sales through contracts with leading advertising agencies in each specific market.
6. Arrange to provide all set up and operating personnel for all locations.
7. Provide all accounting and collections of accounts receivable and banking
8. Provide monthly financial statements to FC
9. Distribute available cash flow to FC and SG

MODUS OPERANDI:

1. Once a screen is installed and operating Gross Revenue  less the following expenses will be distributed 50% to FC and 50% to SGI.:

         a). Site Leasing costs

         b). Advertising agency commissions

      c). Licenses and Permits

      d). Utility and power costs at each location 
 

2. SGI will be responsible to pay from its 50% share of Net Revenue  the following operating expenses:
   1. Site leasing costs
   2. Maintenance of screens
   3. Screen uploading
   4. Staffing costs for operations, maintenance, and uploading
   5. Accounting  
   6. Legal re: leasing costs
   7. SGI’s management team costs
   8. SGI’s consultants’ costs
   9. Computer and peripheral updates.
   10. Other operating costs

3. Within two years FC’s investment amount in each screen should be able to be returned from profitable operations. After that period FC will receive revenues for the life of the long term leases of the individual screens with effectively no capital investment.  

LOCATIONS:

SGI has already negotiated several first class locations for signs. 
 

SUPPLY OF SCREENS:

SGI has arranged with a leading international manufacturer of LED screens and peripherals to supply the highest quality state of the art screens (which can well withstand heat) and billboards and peripherals whose brightness and visual quality will “knock the socks off” the viewing public!  
 

INSTALLATIONS:

SGI has also arranged with leading technical firms to install the screens to SGI’s highest specifications and industry standards under the supervision of SGI’s expert technicians, from both India and Canada.  
 
 

FINANCING:

1. As stated above the Screens would be owned and the Capital Costs financed on an as needed basis by your company. This way your company would have the security of owning the fixed assets.

We envisage starting slowly with only twenty (20) screens per annum. FC will be offered the opportunity to approve of, and to participate financially in each proposed location. Decisions to participate will be expected to be made within a reasonably specified time frame depending on the urgency of finalizing the lease for a particular location. 
 

2. SGI will present FC with a detailed estimate and budget for the capital cost of the installation of each new sign, including a reasonable contingency for set up costs and other budgeted costs together with a Statement of Estimated Revenues and Expenses, for the approval of FC and its participation, within up to 10 business days.

3. Upon approval FC will arrange to fund the capital costs of the signs and its installation. No capital cost funding will be necessary until all site lease arrangements, permits, and the contract for the sign construction together with confirmation of expected delivery date of the individual sign’s documentation are on hand.

4. It is suggested in the foregoing material that we would initially contemplate a financial participation by FC in the nature of up to $3,500,000 being the estimated costs of 20 Giant Screen projects in the first year of operations in India. Some may cost less that $175,000 – some more.

The $175,000 figure is being used as an average guide to costs at this time.   
 

5. After the initial 5 locations are funded and operating FC would have the first right of refusal to finance the capital costs of further Giant Screen installations

6. Each party will have the first right of refusal to purchase the other party’s shares and or assets.

CONTROLS, REPORTS AND AUDITS:

1. A system of accounting and Internal Controls as is to be recommended by professionals to control all assets, revenues and expenses will be set up to the satisfaction of both FC and SGI.                       .
2. SGI will provide FC with regular Financial Statements and Operating Reports.

3. Each screen project and its Financial Statements will be subject to an Annual Audit performed by a firm of Chartered Accountants, the cost of which is to be shared 50/50.

TEAM: The team is extensive and international in nature and will be outlined in detail prior to commencement.   For further information please contact: 
 

Benham Benham   352-789-4203   

Mr. Chris Agagnier     Mr. Robert Fisher

Screen Giant Media Corporation   Suite 603 5603 Balsam Street

BOX 893 Station Main, Okotoks                               Vancouver, British Columbia

Calgary, Alberta, Canada P1S1A9   Canada V6M 4B6