The document introduces a social media solution for magazines to extend their business online and create an active community of readers. It allows magazines to get acquainted with readers, understand their opinions and needs, and build better relationships through 24/7 communication. Key features include personal spaces for readers, community management tools, various communication means, e-commerce functionality, and business intelligence tools to gain insights into readers.

1. Get Acquainted With Your Readers Learn Customer Opinions & Respond to Their Needs Build better relationship with your readers Copyright © 2006, Soft Format . All rights reserved. Online Social Media Platform for Magazines 24/7 Communication

4. Marketing Trends Social Networking Gold Rush: November 2005 - News Corp. drew a lot of attention for paying $580 million to acquire Internet sensation MySpace . April 2006 There's the $800 million acquisition offer from Yahoo that Facebook reportedly rejected, the $2 billion Facebook wants and the $25 million in venture capital Facebook got from Greylock Partners in April October 9, 2006 - Google Inc. announced today that it has agreed to acquire YouTube for $1.65 billion in a stock-for-stock transaction. Buy a Network: MySpace : $15 billion latest Wall Street valuation, courtesy of RBC Capital YouTube : $1.5 billion latest valuation, courtesy of New York Post Facebook : $1 billion latest valuation, courtesy of Wall Street Journal Digg : $200 million valuation, courtesy of Business Week How consumers responded to the survey question: "If the following were available on a social-networking website, which would you likely do this holiday season?" Find out about store sales/product discounts: 51% Download coupons: 51% Search for gift ideas: 47% Buy products: 29% Post or view videos: 20% Read or write product review on blog: 18% None of the above: 12% **Does not total 100% due to multiple responses Source: American Marketing Association online Nov. 9-12 survey of 1,098 consumers. Margin of error is ±2.5 percentage points. 11/23/2006

6. Values Definition Enjoyable place for your readers to hang out online. Like-minded people and old trusted contacts, interesting discussions, personal space of your readers. Convenient purchase (when you want, what you want and how you want). Social commerce – community-based advising, recommendations. Reflection of your readers’ preferences and needs. Multi-directional communication which brings new content for online and offline issues of the magazine. More valuable, more relevant, more trusted New source of personalized/contextual targeted advertising/promotion. Profile/behavior based. More efficient - more advertisers - more profits Aggregation instead of development. Value-Added Service for attracting new customers, increasing loyalty of the old ones and keeping both used to your website. Profile-based VAS to fit your readers’ needs.

7. Vision Concept

15. ComSquare Solution

18. Contacts Olha Kutsevych Sales and Business Development Manager Soft Format LLC: Skype: olhasales E-mail: [email_address] Phone: +38 0332 770091