From the CEO’s desk

March, 2010

Zee Entertainment Investor Newsletter, Vol. 3panorama55555000000000000

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Punit Goenka

At the outset, I would like to wish all of you a very happy and prosperous Holi. Being the festival of colour, Holi brings with it a widespread feeling of happiness and fun, much reflective of the current business environ-ment, a great improvement over the last year.

I am happy to share with you the latest industry data which suggests that the Indian television industry showed a respectable growth in the last calendar year across operating param-eters. While it is well documented that over 8 million households adopted digital Direct to Home satellite services, the other heartening data point is that the overall television advertis-ing industry grew by 7-8% in the calendar year 2009. With the television ad pie growing at a faster pace as compared to print and with over 12 million new television sets being sold per year, I am confident that television would continue to take away the lion’s share of the advertising revenues going forward as well.

At Zee, we have seen our network channels doing well with the flagship channel Zee TV continuing its strong performance. In keeping with our philosophy of working towards pre-defined story lengths, we would be replacing a couple of our primetime shows in the near future. ‘Do Saheliyaan’ is a new show which is to be launched in the month of March followed by another launch in the next quarter.

We have recently tied up with Mail.com Media Corporation, a leading digital media company based in Los Angeles, USA. Through this new joint venture we intend to focus on the online and mobile entertainment space in a more dedicated manner.

It has been our endeavor at Zee to constantly improve our interactions with you and to this effect we have re-launched our corporate website www.zeetelevision.com. I hope that you enjoy the new website as also this issue of Panorama and look forward to your feedback on both.

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CONTENTS• From the CEO’s desk• The Game Changer• Around ZEEL• Snippets• ZEE in the News

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Punit Goenka is Managing Director and Chief Executive Officer of Zee Entertain-ment Enterprises Limited.

More information about Zee, including its financial results and business outlook, can be found on the company’s website www.zeetelevision.com

For decades film viewing has played a central role in the leisure experience of families in India. In the past, families would visit their local single screen theatres for their weekly dose of entertainment over weekends. The only other option was to crowd around the television set on Sunday nights to watch the one movie that the national broadcaster aired every week.

Recognizing a poten-tial opportunity for a movie crazy country, Zee network gave India its first dedicated 24-hour Hindi movie channel, Zee Cinema, in early 1995. For a

country that produces the highest number of movies in a year, this meant that cinema on television was transitioning from being just differentiated content to becoming staple diet. Quite literally the theatres came into the living rooms of the cinema lover, through Zee Cinema.

Over the last 14 years, the channel has successfully brought latest blockbusters and evergreen hits to Indian homes. In doing so, it not only revolutionised a new genre but also brought forth subscription as a new revenue stream as India’s first pay channel.

Zee Cinema’s unique feature is the strength of its library. The channel has the largest number of Hindi movies across television networks, including the biggest hits over decades and featuring the best of Bollywood stars. Proper-ties such as ‘Shanivaar Ki Raat Amitabh Ke Saath’ (Best of Superstar Amitabh Bachchan every Saturday), ‘Double Mazaa’ (Back to back blockbusters), ‘Showman’s Show’

(Movies from leading directors), ‘Bollywood Blockbuster’, ‘Superhit of the Week’ are some of the properties that the channel has successfully run over years on the back of this library strength.

Having been a leader in its genre since inception, the success formula for the team at Zee Cinema has been to keep their ear to the ground and offer viewers what they want. The initiative to let viewers decide the entire movie schedule for a month was a Zee Cinema first, way back in December 2003 (Mangta Hai Kya). Viewer’s Choice, ‘Har Shaam Bajenge Panch’ (Blockbusters at 5 PM), ‘Bhakti ki Shakti’ (Power of Devotion), ‘Rok Sako Toh Rok Lo’ (Single ad break movies), ‘Bollywood Brunch’ (Light comedies in the morning) are just some examples of the various initiatives taken by the channel over years to bring freshness and excitement, and to enhance viewer experience.

While movies serve as the backbone of any cinema channel, the team at Zee Cinema was convinced that a movie channel is not just about showing back-to-back movies but also about entertainment around movies. Zee Cinema has thereby endeav-oured to be a channel that brings alive not just movies, but also the masti (fun) and magic that surrounds Hindi movies.

To that end, the journey began with innovative break content during movie premiers, an initiative that has stood out as one of the key clutter breakers of the channel. ‘Propose to Priyanka’ during the premiere of the block-buster movie ‘Mujhse Shaadi Karoge’ was the first effort in this direction, an experiment that went on be an added source of revenues for the channel, a much appreciated innovation for the viewer and an award winning effort for the team at Zee Cinema.

Be it masti in getting the viewers involved through contests, or creating magic by bring-ing viewers face to face with their favourite film stars, the chan-nel has worked towards creating a holistic movie

channel. Bringing in child star Darsheel Safary as a guest to interact with kids during the kids’ festival ‘Dopahar Zee Cinema Par’, to getting superstar Aamir Khan to talk about the movie during the premiere of ‘Taare Zameen Par’, Zee Cinema has stood the test of time and consistently delivered the promise of bringing engaging and relevant content to its viewers.

Zee Cinema has won many accolades till date, including the ‘The Best Movie Channel’ award for 6 consecutive years from 2003 onwards at the prestigious Indian Television Academy Awards. The channel also has won ‘The Best Movie Channel Award’ thrice at the Indian Telly Awards. The channel has also featured consistently in the winners list at The Promax Awards and The Abby Awards.

No wonder then that Zee Cinema has remained a much respected channel in the country, a consistent leader in its genre and a regular feature in the top channels of the country. While the vision is for Zee Cinema to remain a leader in its space, the team at Zee recognises that the only way to stay there is by listening to the viewer, by giving him what he wants, and fulfilling the promise made. For the viewers, Zee Cinema strives to be - More Movies. More Masti. More Magic.

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The Game Changer:The home of filmed entertainment

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March, 2010

Zee TV recently celebrated its golden moments with ‘Zee Rishtey Awards 2010’. The evening saw all the Zee TV stars come together at a gala event in Mumbai.

Living up to its promise – ‘Har pal banaye, ek naya rishta’, the channel once again managed to successfully weave new bonds of love and friendship with its viewers. Each of the Zee TV shows brings in a unique flavor from different parts of the country and creates an unbreakable bond with viewers.

‘Zee Rishtey Awards 2010’ felicitated the various new relationships that the charac-ters have established with the viewers and awarded those who have been the most popular in playing their role with maximum conviction.

The celebrations at the event saw all Zee TV stars coming together and put their best foot forward for performances on stage. The awards night also witnessed an enthusi-astic participation from all those who have been an important part of the Zee TV

Around ZEEL:Zee TV celebrates with Zee Rishtey Awards 2010

Various Zee TV stars put their best foot forward and showcased their talent

family, right from the days of ‘Tara’, ‘Astitva – Ek prem kahani’ to todays ‘Choti Bahu’ and ‘Dance India Dance’.

Right before the awards were announced, viewers got a golden opportunity to meet their favorite stars and witness their off-screen lives. This viewer-interaction, with their favorite stars was telecast on Zee TV throughout the week leading up to the Awards night.

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Receipients of the awards night A performance at Zee Rishtey Awards

March, 2010

Zee Entertainment Enterprises Limited (ZEEL) has set up a joint venture with Mail.com Media Corporation (MMC), a leading digital media company based in Los Angeles, USA.

The joint venture between ZEEL and MMC marks the launch of an online and mobile entertainment portal, www.india.com.

The new content-centric portal will offer users a broad range of exciting entertainment viewing options and other leading portal applications. Both ZEEL and MMC have proven track records in understanding their audiences and providing innovative and engaging content. ZEEL has achieved great success through cutting-edge programming that resonates with viewers, and MMC has consistently demonstrated a deep expertise in offering compelling ways to connect consumers with brands through its online destinations and event-driven experiences.

desires of life. The passion, obsession, zeal and undying desire to set up a Tamasha theatre company, leaves the audience completely spellbound.

Taking lead from the popularity of the film, Zee Talkies released it for the second time with subtitles, to be able to cater to a larger audience.

In a recent initiative Zee Entertainment Enterprises Limited has revamped its corpo-rate website. The URL for the website is www.zeetelevision.com . The website is a one stop destination for all information on ZEEL. All relevant facts such as company history, businesses, investor relations, finan-cial statements, satellite footprints, media relations etc. are mentioned on the website.

An interesting fact about the new website is that most of the pictures used are of the company’s associates.

Zee enters into aJoint Venturewith MMC

Ten Sports telecastsHero HondaFIH World Cup 2010

Zee revampscorporate website

India’s most watched sports channel Ten Sports is the official broadcaster for the Hero Honda FIH (International Hockey Federation) World Cup 2010. The tourna-ment started on February 28 and will go on till March 13, 2010. This prestigious tournament, held once in four years is being played at the National Stadium, New Delhi. Ten Sports is also producing the telecast of the World Cup.

The World Cup has the top 12 teams from across the world clashing with each other for the coveted title. These are India, Korea, Australia, New Zealand, South Africa, Netherlands, Germany, Spain, England, Pakistan, Argentina and Canada. Ten Sports is telecasting all the 38 matches of the FIH World Cup 2010.

The Hockey World Cup is being organised by FIH since 1971. It is held every four years, bridg-ing the four years between the Summer Olym-pics. Five countries have dominated the event's history. Pakistan is the most successful team, having won the tournament four times. The Netherlands have won three titles, Germany has won two titles while India and Australia have each won the tournament once.

Zee Talkies’ Natarang, undoubtedly one of the most talked about and highly appreci-ated films of recent times has won the ‘Best International Marathi Film – Sant Tukaram Award’ at the recently held Pune Interna-tional Film Festival. This award for Natarang was in recognition for the film as a whole as well as the direction.

Along with this top honour, Atul Kulkarni, Natarang’s lead star was bestowed with the ‘Best Actor’ award for his magnificent performance in the film. Kishore Kadam who plays a pivotal role in Natarang won the ‘Performer of the Festival’ award.

The story of the film revolves around the life of Guna Kagalkar (played by Atul Kulkarni) who inspires people to reflect on the simple

Zee Talkies’ Nataranggrabs top honours atFilm Festivals

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Snippets

Source: TAM Markets: HSMTG: CS 4+ Period: wk 49 2009 to wk 08 2010

Zee TV continues todominate the Top 50shows list for the last3 months.

Top 50Share Top 100

Zee TV 19 29

Star Plus 12 28

Colors 19 37

Zee Cinema’s fresh programing for weekend morning• Cine Fresh on Saturday mornings:

All the new, and critically acclaimed films, are shown at this time slot.

• Sunday Morning Show:

This is a slot where the viewer starts his holiday with a big hit, like Jodha Akbar, to set the mood for the full day.

Sports Cluster FactsRecent events

• South Africa v England Test serieson Ten Sports.

• Pakistan v New Zealand Test serieson Ten Sports.

• UEFA Champions League & UEFA Europa League on Ten Sports & Zee Sports.

Outlook Business: His own manSubhash Chandra is fading into the

background at Zee, but no one minds

it there. Son Punit Goenka has proven

himself – and he’s done it this way. “In

a promoter-run business, it is not easy

to take decisions on the flagship

brand. I didn’t have the fear of

making mistakes and losing my job,”

says Punit Goenka.

read more...

Pitch: Readying for a paradigm shiftSatellite television started with Zee TV in India over 18 years ago. The country has moved from a single satellite channel in 1992 to over 450 channels today. Initially, competition came in the form of GEC. Zee was the pioneer in launching channels in different genres, be it GEC, cinema, news or music or regional languages in Hindi speaking markets.

read more...

The Analyst: The show goes onThe shift in favour of a globally-reputed, subscription-led model and recent turnaround efforts are paying rich dividends for India’s largest TV broadcasting company, ZEEL. “The media and entertainment industry in India continues to witness a shift in structure, driven primarily by a growing consumer preference for digital television,” says Subhash Chandra.

read more...

Holi- Festival of ColoursHoli is one of the major festivals of India. It is celebrated in many parts of the country, especially in the north of India. The festival is celebrated for two to three days to welcome spring. Since it is believed that spring is full of colours, coloured water and dry colour is thrown on each other. It is also believed that Holi marks the beginning of a New Year for people across the country.

Caution Concerning Forward-Looking Statements:This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. Zee Entertainment Enterprises Limited is under no obligation to, and expressly disclaims any such obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Zee in the News

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The world opens up to ZEE.

167 Countries. 500 Million viewers. 1 Entertainment Network.Truly, the largest Indian Television Network in the world.

Visit us at www.zeetelevision.com