Winsonic Digital Media (fka WDMG)

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WinSonic Music and Publishing (“WMP”) is within the Corporate area of WDMG, and is a content
owner and global leader in the digital distribution of independently owned music and video content,
including music recordings and music, television, film and other video content. We acquire or license the
digital rights to music and video content from record labels, artists, television and film production
companies, and other content owners. WMP digitally encodes the content into multiple formats for
distribution to digital entertainment services operating over the Internet and wireless, cable and mobile
networks. Consumers can then listen, view and/or purchase the content for use on their personal
computers, digital music and video players, and music and video-enabled mobile phones. In March,
2008, an agreement was signed with Blue Pie Productions for an exclusive North American rights deal for
over 5 Million music files, over 5000 digital video files, 10,000 mobile games, social networking products,
data mining systems & tools as well as a source code library of proprietary software available for license
and sale through digital distribution, digital music retailers, and digital stores. Our digital entertainment
service partners make our content available to consumers through two primary business models -
permanent copies of entire albums, individual recordings or ringtones on a pay-per-download basis, or
broad access to a substantial quantity of content on a subscription basis. We are planning to receive
revenue from the digital entertainment services based on the number of times our content is downloaded
or streamed by consumers. Beginning in 3rd quarter, we will deliver certain of our video content to
advertising-supported Internet sites where it will be available to consumers, and we will share in a
percentage of the advertising revenue based on the number of times our video content is viewed by
consumers. Our digital entertainment service partners include: Apple iTunes, Napster, RealNetworks,
eMusic, Wal-Mart Music, MusicNet, Verizon, Sprint, Moderati, Zingy, 9 Squared, and many others. We
expect to make our video content available during 2008 through Apple iTunes, Google Video, YouTube,
AOL/In2TV, Movielink, BitTorrent and other digital entertainment services.