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Entertainment Delivers
                        15 Million Consumers…
                      169 Million Transactions…
                         $7 Billion in Revenue…
                        What can we do for you?


Copyright © by Entertainment Publications, Inc., 2006   1
What Entertainment Partners say about us…
                Travel                                       Retailing                                                 Online


                                             “Entertainment has delivered good results
                                            for our outlet stores and online sales. With
                                              a tight advertising budget they were one                 “The Entertainment® Book is an excellent
 “Advertising with Entertainment gives us
                                               partnership we made sure we renewed                     acquisition tool. This program gives us the
 an effective way to make a wide range of
 value-added offers available to millions     because they deliver for us and worked                   opportunity to reach audiences that FTD
 of potential customers whenever they         closely with us to ensure our partnership                does not traditionally target.”
 need to select a rental car company."                   remained win-win.”
                                              - Stella Cicarone, Liz Claiborne Outlets and
  — P. James Moskel, Hertz                                       Liz.com                                     — Leslie Smithers, FTD
   Director Membership Programs &
   National Accounts




                                                 “Our partnership with Entertainment has               “Not only a new customer acquisition
                                             exceeded our expectations. Entertainment’s                vehicle, Entertainment is a successful way
                                              integrated online and offline products have              for us to increase customer order frequency.
                                             generated new customers and increased the                  The turn-key approach to service is a plus”
 “Business growth directly attributed to           average spend among our existing
 Entertainment programs has far surpassed   customers. I would recommend Entertainment
 our expectations.”                             to other companies looking to grow your               - Julie Evans, Omahasteaks.com Sales Manager
                                                               business.”
  — James D. Krapf, Avis
   Vice President, Group Sales
                                             -Herschel Thompson, Charming Shops (Lane
                                            Bryant, Fashion Bug, Catherine’s




                                              Copyright © by Entertainment Publications, Inc., 2006                                                   2
Company Overview
World’s Leading Brand of Value and Savings
• In business since 1962
• Value in 155+ North American Markets
• National, regional & local savings provided
  through:
     – 65,000 merchant partners
     – 240,000+ local merchant locations
• Over 6 million Entertainment books distributed
  nationwide each year
• Over 200 million transactions and $7 billion
  generated for our marketing partners
• Raise more than $90 million annually for local
  charities, schools, and community groups


                             Copyright © by Entertainment Publications, Inc., 2006   3
Entertainment Members
• Base Demographic - 25-54
• Users – 60% female
• Mean income – $71,000
• College educated – 80%
• Has / uses a credit card – 93%
• Internet Access – 79%
• Own their own home – 90%
• Traveled domestically on vacation
  in the last 12 months – 84%
• Would recommend Entertainment
  offers to a friend – 84%



                          Copyright © by Entertainment Publications, Inc., 2006   4
Coupon Usage
• 75% of US consumers use
  coupons.
• Buyers changing brands are
  75% more likely to use coupons
  when making a purchase
• 85% of Entertainment Members
  will try a new business in the
  book and return without a
  coupon if they like it.




                   Copyright © by Entertainment Publications, Inc., 2006   5
• Apparel Client Observations
Client (A)
Generates over $15 million in revenue annually for their female
apparel promotion.

Client (B)            CURRENT U.S.
                      HOUSEHOLD
Is experiencing an average transaction of $114, that’s 65% higher
                      PENETRATION
                                                                                        85%
than their normal average.                             7%
Client (C)
22% of sales came from new customers or those that had not
made a purchase from the company in the last 24 months.

Client (D)
                       IN TOP THREE
First year partner ended up with more than 13,000 new
                       MARKETS
customers!




                                Copyright © by Entertainment Publications, Inc., 2006         6
Partner Highlights
•   Generates $1 Billion + for airlines, hotels, rental cars and cruise lines annually
•   Generated $22 Million in annual sales for one travel partner alone
•   Generated over $1 - 4 Million in annual sales for 1st year apparel partners
•   Generated 20,000 “new” customers for 1st year one apparel client
•   Generated over $1 Million for movie ticket partners annually
•   Generated 3.9% coupon redemption for superstore domestics retailer
•   Delivered transactions 20% higher than average for luxury retailer
•   More than half trial to conversion subscriptions for online rental




                                Copyright © by Entertainment Publications, Inc., 2006    7
Advantage to Our Partners
• Low-cost distribution & flexibility
    – Pay for performance options—upfront and/or
      commission payment structure
• Highly targeted customer
    – We control distribution of your promotional offers
      specifically to value-responsive families
    – Opportunity to deliver brand advertising to
      “Active Buyers”
    – Target nationally, regionally and/or locally
• Ability to Promote with print, online & email
    – Push last-minute inventory online
    – Customers can link directly to your website or print
      out coupons to take to your store locations
• The Entertainment Difference
    – Members BUY the book, therefore usage is high
    – Averaging 25 coupons used per year




                             Copyright © by Entertainment Publications, Inc., 2006   8
Actions Speak Louder than Words
Would your company spend money on advertising that doesn’t work? …Neither does your
competition.
      8 to 10+ Years                         5 to 7 Years                               3 to 4 Years




                                Copyright © by Entertainment Publications, Inc., 2006                  9
Impressive Usage and Redemption Statistics

      EPI consumers drive $7.5 billion in annual sales
                        CONSUMERS:                                                                      MERCHANTS:
                                            Save Money through significant usage:
                               Consumers Redeem OVER 25 OFFERS Per year
                     How often do you redeem offers
                       in the Entertainment® Book?
  60%

  50%             57%
  40%                                                                                               Merchant Renewal Rate
  30%

  20%                                       25%
                                                                      18%
                                                                                                            85%
  10%

    0%
         25 times per year or more    12 times per year       Less than 12 times
                                     (i.e., once / month)          per year


 Source: 2002 EPI Attitude & Usage S tudy                                                                         Source: Company estimate



                                                    Copyright © by Entertainment Publications, Inc., 2006                                    10
Growth of National Paid Advertising
                                                180

                                                160                                                                          154
            National Travel & Retail Partners



                                                140
                                                                                                                      122
                                                120                                                            106
                                                100

                                                 80                                                  68
                                                                 51          52          55
                                                 60
                                                        43
                                                 40

                                                 20

                                                  0
                                                      2001   2002 2003               2004       2005        2006     2007   2008
                                                                                           Year
Entertainment’s National Paid Advertising Continues to Grow Year after Year!

                                                             Copyright © by Entertainment Publications, Inc., 2006                 11
Promotional Network




  Print Publications                  Fortune 1000                                        Online
  Non-profit campaigns,
                                       Companies                                     Entertainment.com
 Barnes & Noble, Target…         Private Label “Custom”                              On-line Printables
                                        Programs                                   & Monthly Email Options

                           Copyright © by Entertainment Publications, Inc., 2006                             12
Markets Served

                                                        • 6 Million + books purchased
                                                        yearly

                                                        • 155+ North American
                                                        editions

                                                        • “Best in Class Offers”

                                                        • National, Regional and Local
                                                        Ads

Copyright © by Entertainment Publications, Inc., 2006                              13
Bonus Circulation
  Provides additional circulation in
  targeted branded programs
• Branded programs with Fortune 1,000
  corporations provides immediate
  distribution for our merchant partners
  and their products and services.

• Key CRM programs provide additional
  revenue and exposure.

• Several options to deliver consumer
  savings:
    –   Coupon books
    –   One-to-one newsletters
    –   Frequency cards
    –   Customized online programs

                            Copyright © by Entertainment Publications, Inc., 2006   14
Entertainment.com
5.7MM visits monthly
• Member Only site for consumers who have
  purchased the printed Entertainment® Book
  or a stand-alone online membership

• Offers can be accessed by our members via
  click-through and/or printable coupons

• Flexibility to change offer content on a
  monthly basis

• Feature great deals on the Member Home
  Page

• Home Page Banners Available
  300,000 unique visitors a week $3,000
  per week
                             Copyright © by Entertainment Publications, Inc., 2006   15
On-line Click Through & Printable Offers
• Link from Entertainment.com                         • Online printable with bar code
  or a corporate private-label                        from www.entertainment.com
  site to a partner’s e-commerce                      and partners Ask.com, Google
  site.                                               Maps, SuperPages.com & more




                           Copyright © by Entertainment Publications, Inc., 2006         16
Monthly Emails to Active Members
Solo Email – 3.5 MM - $12 CPM
Deal Alert – 3.5 MM - $7 CPM
Email Offer Update – 950,000 - $3 CPM
Hybrid packages available – lower CPM + Rev Share




                       Copyright © by Entertainment Publications, Inc., 2006   17

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2009 Entertainment.Pptv4

  • 1. Entertainment Delivers 15 Million Consumers… 169 Million Transactions… $7 Billion in Revenue… What can we do for you? Copyright © by Entertainment Publications, Inc., 2006 1
  • 2. What Entertainment Partners say about us… Travel Retailing Online “Entertainment has delivered good results for our outlet stores and online sales. With a tight advertising budget they were one “The Entertainment® Book is an excellent “Advertising with Entertainment gives us partnership we made sure we renewed acquisition tool. This program gives us the an effective way to make a wide range of value-added offers available to millions because they deliver for us and worked opportunity to reach audiences that FTD of potential customers whenever they closely with us to ensure our partnership does not traditionally target.” need to select a rental car company." remained win-win.” - Stella Cicarone, Liz Claiborne Outlets and — P. James Moskel, Hertz Liz.com — Leslie Smithers, FTD Director Membership Programs & National Accounts “Our partnership with Entertainment has “Not only a new customer acquisition exceeded our expectations. Entertainment’s vehicle, Entertainment is a successful way integrated online and offline products have for us to increase customer order frequency. generated new customers and increased the The turn-key approach to service is a plus” “Business growth directly attributed to average spend among our existing Entertainment programs has far surpassed customers. I would recommend Entertainment our expectations.” to other companies looking to grow your - Julie Evans, Omahasteaks.com Sales Manager business.” — James D. Krapf, Avis Vice President, Group Sales -Herschel Thompson, Charming Shops (Lane Bryant, Fashion Bug, Catherine’s Copyright © by Entertainment Publications, Inc., 2006 2
  • 3. Company Overview World’s Leading Brand of Value and Savings • In business since 1962 • Value in 155+ North American Markets • National, regional & local savings provided through: – 65,000 merchant partners – 240,000+ local merchant locations • Over 6 million Entertainment books distributed nationwide each year • Over 200 million transactions and $7 billion generated for our marketing partners • Raise more than $90 million annually for local charities, schools, and community groups Copyright © by Entertainment Publications, Inc., 2006 3
  • 4. Entertainment Members • Base Demographic - 25-54 • Users – 60% female • Mean income – $71,000 • College educated – 80% • Has / uses a credit card – 93% • Internet Access – 79% • Own their own home – 90% • Traveled domestically on vacation in the last 12 months – 84% • Would recommend Entertainment offers to a friend – 84% Copyright © by Entertainment Publications, Inc., 2006 4
  • 5. Coupon Usage • 75% of US consumers use coupons. • Buyers changing brands are 75% more likely to use coupons when making a purchase • 85% of Entertainment Members will try a new business in the book and return without a coupon if they like it. Copyright © by Entertainment Publications, Inc., 2006 5
  • 6. • Apparel Client Observations Client (A) Generates over $15 million in revenue annually for their female apparel promotion. Client (B) CURRENT U.S. HOUSEHOLD Is experiencing an average transaction of $114, that’s 65% higher PENETRATION 85% than their normal average. 7% Client (C) 22% of sales came from new customers or those that had not made a purchase from the company in the last 24 months. Client (D) IN TOP THREE First year partner ended up with more than 13,000 new MARKETS customers! Copyright © by Entertainment Publications, Inc., 2006 6
  • 7. Partner Highlights • Generates $1 Billion + for airlines, hotels, rental cars and cruise lines annually • Generated $22 Million in annual sales for one travel partner alone • Generated over $1 - 4 Million in annual sales for 1st year apparel partners • Generated 20,000 “new” customers for 1st year one apparel client • Generated over $1 Million for movie ticket partners annually • Generated 3.9% coupon redemption for superstore domestics retailer • Delivered transactions 20% higher than average for luxury retailer • More than half trial to conversion subscriptions for online rental Copyright © by Entertainment Publications, Inc., 2006 7
  • 8. Advantage to Our Partners • Low-cost distribution & flexibility – Pay for performance options—upfront and/or commission payment structure • Highly targeted customer – We control distribution of your promotional offers specifically to value-responsive families – Opportunity to deliver brand advertising to “Active Buyers” – Target nationally, regionally and/or locally • Ability to Promote with print, online & email – Push last-minute inventory online – Customers can link directly to your website or print out coupons to take to your store locations • The Entertainment Difference – Members BUY the book, therefore usage is high – Averaging 25 coupons used per year Copyright © by Entertainment Publications, Inc., 2006 8
  • 9. Actions Speak Louder than Words Would your company spend money on advertising that doesn’t work? …Neither does your competition. 8 to 10+ Years 5 to 7 Years 3 to 4 Years Copyright © by Entertainment Publications, Inc., 2006 9
  • 10. Impressive Usage and Redemption Statistics EPI consumers drive $7.5 billion in annual sales CONSUMERS: MERCHANTS: Save Money through significant usage: Consumers Redeem OVER 25 OFFERS Per year How often do you redeem offers in the Entertainment® Book? 60% 50% 57% 40% Merchant Renewal Rate 30% 20% 25% 18% 85% 10% 0% 25 times per year or more 12 times per year Less than 12 times (i.e., once / month) per year Source: 2002 EPI Attitude & Usage S tudy Source: Company estimate Copyright © by Entertainment Publications, Inc., 2006 10
  • 11. Growth of National Paid Advertising 180 160 154 National Travel & Retail Partners 140 122 120 106 100 80 68 51 52 55 60 43 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 Year Entertainment’s National Paid Advertising Continues to Grow Year after Year! Copyright © by Entertainment Publications, Inc., 2006 11
  • 12. Promotional Network Print Publications Fortune 1000 Online Non-profit campaigns, Companies Entertainment.com Barnes & Noble, Target… Private Label “Custom” On-line Printables Programs & Monthly Email Options Copyright © by Entertainment Publications, Inc., 2006 12
  • 13. Markets Served • 6 Million + books purchased yearly • 155+ North American editions • “Best in Class Offers” • National, Regional and Local Ads Copyright © by Entertainment Publications, Inc., 2006 13
  • 14. Bonus Circulation Provides additional circulation in targeted branded programs • Branded programs with Fortune 1,000 corporations provides immediate distribution for our merchant partners and their products and services. • Key CRM programs provide additional revenue and exposure. • Several options to deliver consumer savings: – Coupon books – One-to-one newsletters – Frequency cards – Customized online programs Copyright © by Entertainment Publications, Inc., 2006 14
  • 15. Entertainment.com 5.7MM visits monthly • Member Only site for consumers who have purchased the printed Entertainment® Book or a stand-alone online membership • Offers can be accessed by our members via click-through and/or printable coupons • Flexibility to change offer content on a monthly basis • Feature great deals on the Member Home Page • Home Page Banners Available 300,000 unique visitors a week $3,000 per week Copyright © by Entertainment Publications, Inc., 2006 15
  • 16. On-line Click Through & Printable Offers • Link from Entertainment.com • Online printable with bar code or a corporate private-label from www.entertainment.com site to a partner’s e-commerce and partners Ask.com, Google site. Maps, SuperPages.com & more Copyright © by Entertainment Publications, Inc., 2006 16
  • 17. Monthly Emails to Active Members Solo Email – 3.5 MM - $12 CPM Deal Alert – 3.5 MM - $7 CPM Email Offer Update – 950,000 - $3 CPM Hybrid packages available – lower CPM + Rev Share Copyright © by Entertainment Publications, Inc., 2006 17