LCS Entertainment
A Dynamic Start Up Music Investment Opportunity
Developed & Presented By:
Lakes Communication Services
Ph: (213) 804-4983
Email: lakescommunications@gmail.com

The Opportunity
 Start up Music Marketing Enterprise
 Specializes in Black/Urban Contemporary Music Genre
 Problems: Indie Labels & Artists typically lack funding &
organizational aptitude required to enjoy wide market
reach.
 Solutions: Capital investment, product development
expertise of LCS Entertainment and marketing support
that provide market advantages to partner labels and
artists to maximize creative assets.
 Benefits: Strong equity positions in numerous record
labels and artists that also establish equally strong
content development positioning to enter distinct product
into marketplace.

Why We Are Different
 Our Plan – To partner with labels and artists capitalizing on
capital investment and marketing expertise to establish strong
equity positions and content development relationships.
 Our Focus – To enhance the interactive experience of our
partners and targeted customers to the music they make and
love.
 Our Vision – A dynamic music marketing venture built to exploit
new digital technology and social networking sensibilities, while
also building lasting brands.
 Our Mission – To become the premier marketer of black/urban
contemporary music by maximizing the use of technology and
cutting-edge concepts while also establishing new standards in
the marketplace.

Products and Markets
Commercially Recorded Music Industry
 Domestic (USA) – Over $10 Billion in Revenues in 2008
 Worldwide – Over $35 Billion
 Projected – Downloaded music sales will soon surpass 50% plateau for all
music sold
Black/Urban Contemporary Music
 Over 40% of Domestic Music Sales Revenues
 Even greater impact upon Fashion, Advertising, Motion Pictures, Social
Networking and Pop Culture
The Enhanced Content Experience
 Compilation CD’s, Documentary DVD’s and Gift Cards among the venues to
maximize content value for creative assets
 Social Networking, Marketing Muscle and Street Credibility intersect in
timely manners that are equally lucrative as they are unique

Marketing and Sales
Direct Placement Relationships
 Strategic partnerships with major music retailers such as: iTunes,
Walmart, Target, Kmart and Best Buy are key to our distribution
strategy
 Prominent positioning in The Ultimate GiftCard™ Marketplace to
capitalize on marketing muscle and social networking sensibilities
of DynamicDebits™ Gift Card
Capitalizing on Digital Distribution Technology
 Establishing strong web presences to ensure direct reach to
targeted audiences
 Establishing strong third-party relationships to ensure product
available and brand presence throughout the marketplace

Competition
Four Major Record Companies that comprise over 70% of
all commercial music sold
 Sony Music Entertainment, Universal Music Group, EMI Worldwide
and Warner Music Group
Apple iTunes is the World’s Largest Music Retailer
 Leading independent labels usually align with companies such as
Koch Entertainment for national distribution; license to majors for
foreign distribution
 Technology continually lowers the cost barrier for market entry
 Consumers enjoy a wide range of options for acquiring and
enjoying recorded music
 Fact: 1% share of USA music industry exceeds $100 Million in
Revenues

Company Management
Founder – Jeffery Lakes
Mr. Lakes is also the founder & CEO of Lakes Communication
Services, a business development organization specializing in
marketing prepaid debit products, e-Commerce solutions and
commercial music.
Additional Members – not yet in place
Organizational model calls for the following:
 Executive VP/General Manager
 VP, Marketing & Communications
 VP, Finance & Administration
 Board of Directors
 Executive Committee

Financial Model
Maintaining Low Overhead
 Highly motivated and versatile staffing model and effective use of
outsourcing
 Expert ancillary product development focused on leveraging repackaged
product into new marketing and interactive opportunities
 Effective use of affiliate marketing power (i.e., The Ultimate GiftCard ™
Marketplace and social networking
Maximizing Revenue Streams
 Equity positions in each label, artist and production company we partner
with establishes additional revenue streams
 Direct placement arrangements eliminates wholesalers who share
disproportionately in the profit equation
 Direct reach and access to targeted consumers also ensures minimal use of
wholesalers

Cash Flow Overview
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Revenues $600K $5.25MM $12.20MM $21.80MM $36.55MM
Expenses $1.80MM $2.10MM $4.95MM $8.35MM $14.25MM
Net Profit/Loss ($1.20MM) $3.15MM $7.35MM $13.45MM $22.30MM
Cash Flow/ ($500K) $2.65MM $10.00MM $23.45MM $45.75MM
%Increase N/A 875% 232% 78% 68%
Note: based on start up capital investment of $2,500,000

Investments & Returns
Capital Request: $2,500,000
 For Staffing
 To secure equity positions in labels, artists and production teams to created enhanced
content for market
 To enter product into marketplace
Cash Flow Summary
 No additional capital requests anticipated
 By Year 2, Company will achieve positive cash flow status
 By Year 3 , Company will be in strong financial position to commence fully acquiring
partner companies; or other timely acquisition opportunities
Cash Out/Exit Strategy
 After Year 5, Company will execute a PPO or seek an LBO (Merger/Acquisition)
 At 2.5 multiple of fifth year revenues ($36.55MM); proceeds project to $91.40MM pre-
tax/pre-expense
 At 60% Equity Stake in LCS Entertainment, Investor(s) ROI projects to $54.80MM pre-tax/
pre-expense