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April 16, 2007

SONY PICTURES ENTERTAINMENT

Analyst Meeting

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Privileged and Confidential

MICHAEL LYNTONCHAIRMAN & CEO

SONY PICTURES ENTERTAINMENT

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• We believe in the power of “Sony

United”

• Increasingly international in

scope

• Leader in using technology to make

and deliver entertainment to our

audiences

• Emphasis on financial discipline

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• 42 titles released on Blu-ray in North America

• Blu-ray outselling HD-DVD discs by 2-to-1

• SPHE has sold over 300,000 discs

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• Talladega Nights bundled with the first 500,000

PlayStation 3’s sold in the U.S.

• Casino Royale offered with the release of

PlayStation 3 in Europe

• Casino Royale became the first high-definition disc

to ship 100,000 units

• Blu-ray has support of 7 out of 8 major studios

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Blu-rayHD DVD

Blu-ray vs. HD-DVD

70%

29%

Year-to-date 2007,

Blu-ray sales have outperformed HD-DVD by 132%

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• Thirteen #1 movies in 2006

• SPE was #1 in U.S. box-office receipts

• Broke all-time box-office record with $1.7

billion

• $3.3 billion in worldwide box-office

receipts

• SPE was #1 during the 2002-2006 time

period

o SPE was the only studio to break the

$6 billion mark during that time

• SPE has been #1 in three of the past five

years

• SPE has more #1 openings than any other

studio between 2002 and today

MotionPictures

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• 2006 was biggest year for SPRI

• 2006 total gross $1.63 billion

• The Da Vinci Code set all-time box-office

record with $154.7 million in its opening

weekend

• Casino Royale set a new record for the

James Bond franchise

o Biggest Bond film ever in the

international marketplace with $426.4

million through March 2007

• The Da Vinci Code and Casino Royale led

the international marketplace for 4

consecutive weekends

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Challenges&

Opportunites

• The business is increasingly

competitive

• Consumers accessing a wider

variety of entertainment in more

ways than ever before

• We must keep ahead of changes in

technology and society

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Financial DisciplineOur goal at SPE is to be creative

and financially disciplined at the same time

SPE has been profitable for ten straight years

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• Make fewer “first dollar gross” talent

deals

• Reduce the number and cost of

“producer lot” deals

• Ensure physical production is on

track and on budget

• Implement strategic and disciplined

marketing strategies

• Diverse film slate

• Seek out tax and other government

sponsored incentives

• Continue to think “globally”

Financial Discipline

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Sony Pictures Overall Revenue

$6.1 billion in Calendar Year 2005

Calendar Year 2006$ 7.8 billion

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