2006 Actual 2007 Base Scenario 1 Scenario 2 Scenario 3 Assumptions Revenue Ad Sales $230,630,400 Insert scenario results from revenue calculator Grows 2% per year $81,600,000 with population $81,600,000 Affiliate Fees $80,000,000 $81,600,000 $81,600,000 $81,600,000 Total Revenue $310,630,400 $81,600,000 $81,600,000 $81,600,000 Expenses Cost of Operations $70,000,000 $72,100,000 $72,100,000 $72,100,000 $55,000,000 Cost of Programming Ad Sales Commissions Marketing & Advertising $6,918.912 $45,000,000 Grows 3% per year $72,100.000 with inflation Add incremental programming expense 3% of ad sales revenue Reflects increased spending of $15M Growing with $41,200,000 inflation 3% Spreadsheet calculates $113,300,000 automatically Spreadsheet calculates automatically Spreadsheet calculates automatically SGA $40,000,000 $41,200,000 $41,200,000 $41,200,000 Total Expense $216,918,912 $113,300,000 $113,300,000 $113,300.000 Net Income $93.711,488 Margin 30% 2006 Actual 2007 Base Scenario 1 Scenario 2 Scenario 3 Assumptions Revenue Ad Sales $230,630,400 Insert scenario results from revenue calculator Grows 2% per year $81,600,000 with population $81,600,000 Affiliate Fees $80,000,000 $81,600,000 $81,600,000 $81,600,000 Total Revenue $310,630,400 $81,600,000 $81,600,000 $81,600,000 Expenses Cost of Operations $70,000,000 $72,100,000 $72,100,000 $72,100,000 $55,000,000 Cost of Programming Ad Sales Commissions Marketing & Advertising $6,918.912 $45,000,000 Grows 3% per year $72,100.000 with inflation Add incremental programming expense 3% of ad sales revenue Reflects increased spending of $15M Growing with $41,200,000 inflation 3% Spreadsheet calculates $113,300,000 automatically Spreadsheet calculates automatically Spreadsheet calculates automatically SGA $40,000,000 $41,200,000 $41,200,000 $41,200,000 Total Expense $216,918,912 $113,300,000 $113,300,000 $113,300.000 Net Income $93.711,488 Margin 30%