The Cinema Shares com Business Method Offer

The Cinema. Shares. com Business Method • Offer movie fans the opportunity to buy a single share of stock in a movie company – Proposed movie described on the company’s Web site – Shareholders (movie fans) collected from Internet partners – Shareholders fully finance the movie • Shareholders receive a free DVD as a stock dividend – Shareholders also watch movie being made – Shareholders entered into fun contests – Shareholders vote on fun movie-related items • Shareholders receive added benefit of sharing in movie’s profits

A New Method Of Public Financing • Consumers purchase one share of stock in a publicly traded company – Targeted consumers interested in a specific product – Consumers collected from Web partners – Consumers fully finance new company • Consumers receive company’s product as a stock dividend – Offered product is described in detail before its creation – Shareholders participate in product’s creation – Primarily for companies with distributed media • Consumers receive added benefit of sharing in company’s profits

A Method for Financing Many Companies

Applying Our Business Method to Racing. Shares. com • Finance Formula One Racing Teams – Tremendous fan base for Formula One racing – Fans collected from Internet Web sites and product promotional tie-ins • Fans buy one share of stock in their favorite team • Shareholders (racing fans) receive many additional benefits: – Streaming video access to pits – Contests for pits tickets and a day with the driver, etc. – A free DVD of the season highlights as a stock dividend • Stock also sold to Advertisers and Corporate Sponsors • Shareholders receive their portion of the team’s winnings paid out as cash dividends

Why the Purchase of One Share of Stock is Now Practical • The Internet now allows for promoting to a highly targeted demographic (such as movie fans) • Possible to manage a very large number of Shareholders in a database • New SEC rules make our Business Method possible: – The delivery of disclosure documents through e-mail, – The purchase of stock on a Web site with a credit card – No longer need to exchange a paper contract with Broker/Dealer (Electronic Signatures Act)

Our First Public Company

Current Film Financing Problems To finance their films, most movie producers currently pre-sell certain distribution rights to guarantee bank loans • Loans must be fully repaid before any profits or revenues are realized • Movies are generally considered to be a poor investment • More than 50% of the films made over the last 3 years have not been profitable* • Movie studios/executives accept a high percentage of failed movies “Most people who understand the movie business realize that not every one of the little turtles is going to make it to the shore” - Jeffrey Logsdon, Entertainment Analyst, Gerard Klauer Mattison * Source: Arthur Andersen report. (Quoted in Hollywood Reporter)

Cinema. Shares. com’s Solution • Enables Movie Producers to fund movies without debt • Minimal risk because the public fully finances each movie by essentially pre-selling DVD copies • Producer trades Intellectual Property for stock in company • Shareholders have a vested interest in promoting the film • Free conceptual and marketing input from shareholders • Cinema. Shares can “test the waters” • Does not require “Accredited” or “Qualified” Investors • Guaranteed returns as shareholders earn revenues from the first dollar

Both Small and Large Investors Can Play • Small investors (potential audience) can invest in a movie for as little as $20 for one share of fully listed stock • Major video retailers and distributors can purchase large blocks of shares

Cinema. Shares. com’s Solution: Individual Investors Individual purchasing one share receives tremendous value for his $20 investment: – Each share held pays a guaranteed dividend – A free DVD copy of the movie upon video distribution – Shareholders receive free video clips from the set – Shareholders can interact with filmmakers during production and vote on the Web site – Shareholders entered into movie-related contests – Each shareholder receives a portion of future revenues paid out as cash dividends

Cinema. Shares. com’s Solution: Corporate Investors Large blocks of shares can be sold to major video retailers such as Blockbuster, Walmart, Best Buy, and Netflix • Blockbuster, Best Buy, and others are currently financing movies and other entertainment properties • Foreign video distributors could also buy shares • Home video divisions of major studios could participate • Large investors would partially insure their investment with the free video dividends

A Cure for Piracy? Future Cinema. Shares. com ad line: “You can’t pirate a movie before it is made. ”

Stock in Cinema. Shares. com Licensee Companies Each company is basically a Nasdaq Tracking stock with certain unique features: • Property is fully financed by selling 50% of the company’s stock to the public • Similar to a REIT in that all income is paid out as cash dividends to shareholders • Movie will be securitized and the Licensee Company stock will be repurchased within a specified period of time • Fleet Boston is presently securitizing the future revenues of studio movies • New name - Short Term Electronic Security - STES

Stock Distribution – Licensee Companies

Typical Stock Distribution

Marketing the Shares in a Licensee Company Shares are marketed through strategic partnerships: • Internet Promotions: • Movie-fan Web sites • Online brokerages • E-mail campaigns, primarily viral • As part of major video retailer ad campaigns • Traditional Broker/dealers and market makers • Free Public Relations due to newsworthiness of our new concept: • Financial Publications such as Wall Street Journal • Celebrity participant appearances on CNN • Movie fan publications • Movie Industry publications such as Hollywood Reporter

Cinema. Shares. com Online Marketing

Movie and Entertainment Web sites Unique users per week (thousands): Netflix………………. . 1, 134 Yahoo Movies………… 992 IMDB……………… 945 Moviefone…………… 636 UGO Film/TV…………. . 584 Blockbuster……………. 246 MGM……………… 216 Fandango…………… 194 Ifilm………………. . 182 *Source: Hollywood Reporter

Marketing Racing. Shares. com

Cinema. Shares. com Typical Stock Purchase Breakdown

Benefits to Shareholders • Small investors can participate for as little as $23 • Shares are fully listed, publicly traded stock • Shareholders receive tremendous additional benefits: – A free VHS or DVD copy of the movie, that is worth their investment – Shareholders watch streaming video during filming – Shareholders vote during the creative process – Shareholders receive proportional cash dividends from movie’s earnings • SEC scrutiny of earnings from each movie • Pride of ownership in a studio quality movie

Benefits to Producers • Enables Producers to fund movies without debt • Guaranteed returns as they earn revenues based on their retained equity • Free marketing from Shareholders who have a vested in promoting the film • Free conceptual and marketing input from shareholders (Cyber-Producers) during the entire production process • Cinema. Shares. com can “test the waters” and elect to not proceed with a movie if there is insufficient interest • Minimal risk because the public fully finances each movie by essentially pre-selling DVD copies in advance of the production • Does not require “Accredited” or “Qualified” Investors

Cinema. Shares. com Revenues • Without the typical loan to repay, even movies that are not box office hits will generate profits for Cinema. Shares. com • Revenues come from distribution of films through traditional methods: – Theatrical Exhibition (Worldwide) – Home Video – Network (TV and Cable TV) Distribution – Licensing (Games, Advertising, Merchandising, and others) – Soundtracks – Non-theatrical Distribution (Airlines, Etc. )

Old Formula Movies Financed With Debt

Cinema. Shares. com’s Formula – Exchange IP for Shares

Acquire Without Dilution to Parent Company

Our Patent-Pending Business Method • Cinema. Shares. com will soon receive a U. S. Patent for our • • • innovative Business Method to finance movies We can eliminate the loan from the film financing process Our Business Method gives every investor an “Agreed Fair Return” on his investment, regardless of the film’s earnings Our Internet-related Patent will be enforceable worldwide against anyone doing business in America Our attorney, Michael Byorick, is Microsoft’s former Internet patent attorney presently with Lathrop and Gage, one of the country’s most prestigious firms Continuation-in-Part filings planned for additional Patent applications

Our Patent’s Key Elements – Applied to Movie Financing • Displaying a proposed movie on an Internet Web site and selling shares of stock in the company owning the movie – Storyboard synopsis describes the movie – Shareholders watch streaming video clips of production – Shareholders vote during production • Giving a free DVD as a stock dividend for each share purchased • Shareholders also receive cash dividends

Additional Patent Applications • We will file a Continuation-in-Part to amend our claims and apply our Business Method to many other types of leisure and entertainment-related properties: – Music production for known and unknown artists – Celebrities and Sports Figures – Video Games – Purebred Horses – Formula One Racing teams – All properties that lend themselves to distributed media

The Winning Team • Gene Massey: Founder, Chairman, & CEO. – Thirty-year film industry experience producing and directing – Owner/President of Los Angeles film production company • Richard Stocker: CFO – International public accounting in Entertainment Industry. – Financial planning and year-end reporting for News Corp. – Managed financing for production of major WB films. • Jeromee Johnson: Chief Technology Officer – Internet Securities Trading – Former CTO Go. Invest. com – SEC Licensed programmer for Securities Web sites

The Winning Team Board of Advisors • Michael Byorick, Top intellectual Property Attorney (Former Intellectual Property attorney for Microsoft) • John Gorman, Top US Securities Attorney (Former Deputy of SEC Chief Counsel) • Angela Petillo, Entertainment Attorney (Business Affairs, William Morris Agency) • Bill Handler, E-mail Marketing Executive (160 million E-mail addresses) • See Tong Chiam, Member of Parliament, Government of Singapore • Jeffrey Stutsman, Parking Cashier, Grand Rapids, Michigan

The Winning Team – Board of Advisors • Dato’ J. Jegathesan, World Economic Consultant and Investment Advisor to Governments of Malaysia and Sudan • Inderjit Singh, Member of Parliament, Government of Singapore • Bryan Hickox, Film Producer • Jerrol Lebarron, Writer’s Script Network (5, 000 Screenplays) • Paula Berinstein, Internet Research Specialist • Olaf Halvorssen, Sr. V. P. Isotag Corporation

Size of Market

Cinema. Shares Revenue Projections

Estimated Future Valuation