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Platinum Studios, Inc. – ‘8-K’ for 6/12/08 – EX-99.1

On: Friday, 6/20/08, at 1:02pm ET · For: 6/12/08 · Accession #: 1144204-8-36070 · File #: 333-145871

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 6/20/08  Platinum Studios, Inc.            8-K:8,9     6/12/08    2:19M                                    Vintage/FA

Current Report — Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                      HTML     16K 
 2: EX-99.1     Miscellaneous Exhibit                               HTML   8.39M

EX-99.1 — Miscellaneous Exhibit

This exhibit is an HTML Document rendered as filed. [ Alternative Formats ]

Business Valuations

Fairness Opinions

Solvency Opinions

Expert Testimony

Fiduciary Advisory Services

Los Angeles Sacramento

June 12, 2008

File No: 18470

Mr. Brian Altounian

President and Chief Operating Officer

Platinum Studios, Inc.

11400 W. Olympic Blvd, 14^th Floor

Los Angeles, CA 90064

RE:

Valuation of Intellectual Property Held and Controlled by Platinum Studios, Inc. (Ticker Symbol: PDOS.OB)

Dear Mr. Altounian:

As requested, SANLI PASTORE & HILL, INC. (“SP&H”) has determined the fair market value and fair value of a 100% equity interest in intellectual property consisting primarily of a library of comic book characters (the “Intellectual Property” or the “IP”) held and controlled by Platinum Studios, Inc. (“Platinum” or the “Company”). The Intellectual Property is being commercialized in six primary areas: 1) theatrical films and DVDs, 2) online content, 3) comic books, 4) video games, 5) licensing and merchandising, and 6) an online comic book challenge contest. The Company’s corporate headquarters are located at 11400 W. Olympic Boulevard, 14^th Floor, Los Angeles, California.

PURPOSE OF ASSIGNMENT

The purpose of SP&H’s assignment is to determine the fair market value and fair value, as further described in the Standard of Value section of this cover letter, of a 100% equity interest in the Intellectual Property held and controlled by Platinum Studios, Inc.

Sanli Pastore & Hill, Inc.

1990 South Bundy Drive, Suite 800

Los Angeles, California 90025

Telephone: 310/571-3400

Fax: 310/571-3420

www.sphvalue.com

Mr. Brian Altounian
Valuation of IP for Platinum Studios, Inc.
June 12, 2008	*Los Angeles Sacramento*
Page 2 of 6

FUNCTION OF ASSIGNMENT

The function of this valuation is to provide information that may be used by management to raise additional capital for the Company.

DATE OF VALUE

The date of value utilized herein is March 31, 2008. Unless otherwise indicated, our discussion is as of the date of value.

SCOPE OF WORK

SP&H’s valuation is referred to by the American Society of Appraisers (“ASA”) as an Appraisal. The definition of Appraisal is provided by ASA Business Valuation Standard I. This standard defines the objectives and qualities of an Appraisal as follows:

The objective of an appraisal is to express an unambiguous opinion as to the value of the business, business ownership interest, or security, which is supported by all procedures that the appraiser deems to be relevant to the valuation.

An appraisal has the following qualities:

(1)

It is expressed as a single dollar amount or a range.

(2)

It considers all relevant information as of the appraisal date available to the appraiser at the time of performance of the valuation.

(3)

The appraiser conducts appropriate procedures to collect and analyze all information expected to be relevant to the valuation.

(4)

The valuation is based upon consideration of all conceptual approaches deemed to be relevant by the appraiser.

STANDARD OF VALUE

In performing our valuation, we will use the ASA definition of fair market value:¹

¹“ASA Business Valuation Standardsã and Portions of Uniform Standards of Professional Appraisal Practice (USPAP)” Copyright, 2002, American Society of Appraisers. p. 23.

Mr. Brian Altounian
Valuation of IP for Platinum Studios, Inc.
June 12, 2008	*Los Angeles Sacramento*
Page 3 of 6

Fair Market Value: The price, expressed in terms of cash equivalents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arm’s length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts.

We also considered Statement of Financial Accounting Standards (“SFAS”) No. 157, in which fair value is defined as follows:

Fair Value: The exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. Therefore, the definition focuses on the price that would be received to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price).

In addition, SFAS 157 identifies a fair value hierarchy to rank the reliability of inputs used in a valuation approach, which is as follows:

Level 1: Use quoted prices for identical securities in an active market;

When those prices are not available,

Level 2: Use observable inputs that a market participant would use;

When those observations are not available,

Level 3: Use unobservable inputs.

SP&H considered the fair value hierarchy, and our conclusion is fair market value, as well as fair value.

PREMISE OF VALUE

It is essential to determine under which premise of value a business enterprise’s valuation will be determined. The premises of value to be considered are:

Mr. Brian Altounian
Valuation of IP for Platinum Studios, Inc.
June 12, 2008	*Los Angeles Sacramento*
Page 4 of 6

Valuation under going-concern conditions: the business enterprise is valued in continued use, as a mass assemblage of income producing assets and well-managed, efficient employees, as a going-concern business enterprise.

In addition, the ASA defines Going-Concern Value as:

1. The value of an enterprise, or an interest therein, as a going concern. 2. Intangible elements of value in a business enterprise resulting from factors such as: having a trained work force; an operational plant; and the necessary licenses, systems and procedures in place.

Valuation as an assemblage of assets: the value in place as a mass assemblage of assets, but not in current use in the production of income, and not as a going-concern business enterprise.

Valuation as an orderly disposition: the value in exchange, on a piecemeal basis (not part of a mass assemblage of assets), as part of an orderly liquidation.

Valuation as a forced liquidation: the value in exchange, on a piecemeal basis (not part of a mass assemblage of assets), as part of a forced liquidation; this premise contemplates that the assets of the business enterprise will be sold individually and that they will experience less than normal exposure to the market. A Chapter 7, Bankruptcy Act liquidation is one example.

Based upon our research and analysis, the Intellectual Property was valued under the going concern premise number 1 above, subject to the Limited Conditions on page 5 of this letter.

CONCLUSION OF VALUES

Based upon the results of our analysis and procedures, the fair market value and fair value of the Intellectual Property under a going-concern premise is as follows (see Schedule 31, page 92):

Mr. Brian Altounian
Valuation of IP for Platinum Studios, Inc.
June 12, 2008	*Los Angeles Sacramento*
Page 5 of 6

	Fair Market Value and Fair Value of Intellectual Property

Film Entertainment

Licensed Films	$	8,750,000

Joint Venture Films		18,457,000

Film Fund Films		23,565,000

Direct to DVD Films		9,314,000

Film Entertainment Total	$	60,041,000

Digital Publishing	$	28,816,000

Video Network	$	42,391,000

Print Publishing	$	812,000

Licensed Video Games	$	29,852,000

Licensing and Merchandising	$	7,991,000

Comic Book Challenge	$	500,000

Total Market Value of Invested Capital	$	170,403,000

Less:
Net Working Capital	$	(1,598,000	)
Property and Equipment	$	(257,000	)
Existing Debt	$	(4,662,000	)
Projected Debt Funding	$	(13,848,000	)

Total Fair Market Value and Fair Value of 100% Equity Interest in Intellectual Property	$	150,038,000

LIMITING CONDITIONS

In rendering our opinion, SP&H has relied upon and assumed the accuracy and completeness of all financial and other information that was available to us from both public and private sources, including all the financial information and other information provided to us by Platinum. We have further relied upon assurances from management of Platinum that they are unaware of any facts that would make the information provided to SP&H incomplete or misleading. SP&H conducted interviews with the management regarding assumptions contained in our projections and the factors that may affect the accuracy of these projections, and also conducted thorough independent industry, economic and competitive research and analysis. It should be noted, however, that there exists the possibility that Platinum’s performance will differ from what is projected in the report. We make no representations about the ability of Platinum to achieve these projections. Actual results may differ, and these differences could be material. We disclaim any liability resulting from information provided by management.

Mr. Brian Altounian
Valuation of IP for Platinum Studios, Inc.
June 12, 2008	*Los Angeles Sacramento*
Page 6 of 6

Among several risk factors identified in the Company’s 10-K as of December 31, 2007, are the Company’s ability to obtain additional financing to execute its business plan as well as the Company’s ability to continue as a going concern. Our valuation takes into account these risks.

Our valuation opinions are necessarily based on economic, market, financial, and other conditions, as they exist, and the information made available to us. We reserve the right to amend our opinions if additional information is made available. Please note that we have not been engaged to nor are we rendering any fairness or solvency opinions in connection with this engagement.

Our compensation for this appraisal is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or use of, this report.

The report that follows sets forth the information used in arriving at our conclusion.

The valuation analyses performed herein were done in conformity with the Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice. This appraisal is subject to the enclosed “Appraisers’ Certification and Contingent and Limiting Conditions.” Also enclosed is information about SP&H, including the professional qualifications of the firm’s management and SP&H's products and services.

Respectfully submitted,

SANLI PASTORE & HILL, INC.

a California Corporation

NS/TP/mi/nl

Enclosures

EXECUTIVE SUMMARY

Platinum owns 5,622 comic book characters in various genres. The Company’s focus is adapting its library to all media platforms. Some of Platinum’s titles include: Cowboys & Aliens, Unique, Atlantis Rising, Dead of Night, Blood Nation, Ghosting, and Kiss 4 K. With characters that have appeared in comics in 25 languages and in more than 50 countries, the Company’s library is continually expanding.

In 2007 and through the first quarter of 2008, Platinum:

Sold Unique to Disney Studios, with the anticipation that it will go into production in 2009;

Entered into a 2-year option agreement with DreamWorks, Universal Studios, Paramount Pictures, and Imagine Entertainment to acquire the film production rights to Cowboys & Aliens, with the goal to produce a feature film;

Completed a co-production deal for Dead of Night with Hyde Park Entertainment; and

Completed a co-production deal for Witchblade with Arclight Films and Top Cow Entertainment.

Currently Platinum is in negotiation with several film studios to co-produce the following titles:

Atlantis Rising

Hunter

Mal Chance

The depth, breadth, and versatility of Platinum’s library provide a rich field for the growth of lucrative entertainment franchises. Among the 84 comic book adaptation movies since 1978 to present, 22.8% of the movies produced at least 1 sequel. With the potential to create film franchises and spin-offs, this enables the Company to produce more film projects derived from the same characters.

On February 1, 2008, Platinum became a publicly traded company (ticker symbol: PDOS.OB) on the OTCBB. For the quarter ended March 31, 2008, the stock prices per common share reached a high of $0.23 and a low of $0.09. The number of outstanding shares, as of March 31, 2008, was 216,921,227, which indicated a market capitalization of $34.7 million. Platinum successfully raised approximately $5.0 million from its initial round of private financing (“PPM”) and plans to raise additional $2.2 million in the second round. The proceeds of the offering are expected to be used for working capital.

Platinum’s principals have spent approximately $10 million building the 5,622 character library. Platinum is actively recruiting executives, artists, and other talent.

Based upon the results of our analysis and procedures, the fair market value and fair value of equity interest in Platinum’s Intellectual Property is $150,038,000.

TABLE OF CONTENTS

TABLE OF CONTENTS	I

COMPANY PROFILE	1

DATE OF VALUE	1
BUSINESS OVERVIEW	1
PRODUCTS AND SERVICES	2
Definition of Industry	2
Products	2
LOCATIONS AND FACILITIES	3
BUSINESS STRATEGY	3
Character Development	3
Sales and Distribution	4
CUSTOMERS AND CONSUMERS	6
PROPERTY AND EQUIPMENT	6
Fixture and Equipment	6
Licensing Rights	6
COMPANY ORGANIZATION AND STRUCTURE	8
Ownership	8
Executive Management	9
Management	10
Employees	10

FINANCIAL ANALYSIS	11

*Income Statements (Schedule 1)*	11
*Balance Sheets (Schedule 2)*	12
SUMMARY	14
Schedule 1: Income Statements	15
Schedule 2: Balance Sheets	16

INDUSTRY ANALYSIS	17

INTRODUCTION	17
U.S. FILM ENTERTAINMENT MARKET	17
Industry Growth	17
Number of Films Released	18
Comic Book Adaptation Movies	18
Industry Concentration	19
U.S. AND INTERNATIONAL LICENSING MARKET	20
Industry Growth	20
Character Licensing Growth	21
U.S. DIGITAL PUBLISHING INDUSTRY	21
U.S. COMIC BOOK PUBLISHING INDUSTRY	23
Industry Growth	23
Comic Book Market Shares	23
U.S. VIDEO GAME INDUSTRY	24
Industry Growth	24
SUMMARY	24

COMPETITION ANALYSIS	26

ECONOMIC ANALYSIS	28

INTRODUCTION	28
THE U.S. ECONOMY	28

Growth	28
Unemployment	29
Consumer Confidence	29
Personal Income	30
Disposable Income	31
FORECASTS FOR THE U.S. ECONOMY	32
The Anderson Forecast	32
The Livingston Survey	32
The Congressional Budget Office Survey	32
THE EUROPEAN ECONOMY	33
European Growth	33
European Unemployment	33
FORECASTS FOR THE EUROPEAN ECONOMY	34
The Euro-area GDP Growth Projection	34
European Economic Forecasts	34
SUMMARY	35

VALUATION ANALYSIS	36

INTRODUCTION	36
DEFINITION OF FAIR MARKET VALUE	36
DATE OF VALUE	37
RISK/REWARD PROFILE	37
METHODOLOGICAL APPROACHES	40
Schedule 3: Projected Cash Flows for Licensed Film Division	43
Schedule 4: Method 1: Discount Cash Flow for Licensed Film Division	45
Schedule 5: Method 2: Market Multiplier Method for Licensed Film Division	51
Schedule 6: Fair Market Value of Intellectual Property in the Licensed Film Division	53
Schedule 7: Projected Cash Flows for Joint Venture Film Division	54
Schedule 8: Method 1: Discount Cash Flow for Joint Venture Film Division	56
Schedule 9: Method 2: Market Multiplier Method for Joint Venture Film Division	57
Schedule 10: Fair Market Value of Intellectual Property in the Joint Venture Film Division	59
Schedule 11: Projected Cash Flows for Film Fund Division	60
Schedule 12: Method 1: Discount Cash Flow for Film Fund Division	62
Schedule 13: Method 2: Market Multiplier Method for Film Fund Division	63
Schedule 14: Fair Market Value of Intellectual Property in the Joint Venture Film Division	65
Schedule 15: Projected Cash Flows for Direct to DVD Division	66
Schedule 16: Method 1: Discount Cash Flow for Direct to DVD Division	68
Schedule 17: Method 2: Market Multiplier Method for Direct to DVD Division	69
Schedule 18: Fair Market Value of Intellectual Property in the Direct to DVD Division	71
Schedule 19: Projected Cash Flow for Digital Publishing Division	72
Schedule 20: Method 1: Discount Cash Flow for Digital Publishing Division	74
Schedule 21: Method 2: Market Multiplier Method for Digital Publishing Division	76
Schedule 22: Fair Market Value of Intellectual Property in the Digital Publishing Division	78
Schedule 23: Projected Cash Flow for Video Network Division	79
Schedule 24: Method 1: Discount Cash Flow for Video Network Division	81
Schedule 25: Method 2: Market Multiplier Method for Video Network Division	82
Schedule 26: Fair Market Value of Intellectual Property in the Video Network Division	84
Schedule 27: Revenue Multiplier Method for Print Publishing Division	85
Schedule 28: Projected Cash Flow for Licensed Video Games Division	87
Schedule 29: Discounted Cash Flow Method for Licensed Video Games Division	89
Schedule 30: Discounted Cash Flow Method for Licensing and Merchandising Division	91
Schedule 31: Conclusion of Fair Market Value of the Intellectual Property	92
Exhibit 1: Licensed Film Division Assumptions	97
Exhibit 2: Time of Cash Flows from Ultimates – Licensed Film, Film Fund, Joint Venture	98
Exhibit 3: Time of Cash Flows from High Budget Action Film	99
Exhibit 4: Time of Cash Flows from High Budget Comedy Film	100

Exhibit 5: Time of Cash Flows from High Budget Thriller Film	101
Exhibit 6A: Development of Equity Discount Rate	102
Exhibit 6B: Development of Rate of Return on Debt	103
Exhibit 6C: Development of Weighted Average Cost of Capital	104
Exhibit 7: Capital Structure per Film Fund, LLC Agreement	105
Exhibit 8: Joint Venture Film Division Assumptions	106
Exhibit 9: Time of Cash Flows from Low Budget Action Film	107
Exhibit 10: Time of Cash Flows from Low Budget Comedy Film	108
Exhibit 11: Time of Cash Flows from Low Budget Thriller Film	109
Exhibit 12: Time of Cash Flows from Horror Film	110
Exhibit 13: Film Fund Division Assumption	111
Exhibit 14: Time of Cash Flows from Film Fund	112
Exhibit 15: Direct to DVD Division Assumption	113
Exhibit 16: Time of Cash Flows from Ultimates – Direct to DVD	114
Exhibit 17: Time of Cash Flows from Direct to DVD Films	115
Exhibit 18: Traffic Analysis of Digital Publishing Division	116
Exhibit 19: Revenue and Cost Assumptions of Digital Publishing Division	117
Exhibit 20: Growth Assumptions of Digital Publishing Division	118
Exhibit 21A: Development of Equity Discount Rate	119
Exhibit 21B: Development of Rate of Return on Debt	120
Exhibit 21C: Development of Weighted Average Cost of Capital	121
Exhibit 22: Revenue and Cost Assumptions of Video Network Division	122
Exhibit 23: Growth Assumptions of Video Network Division	123
Exhibit 24: Time of Revenues from Licensed Video Games	124
Appendix A-1: Comic Book Adaptation Movies	125
Appendix A-2: Comic Book Adaptation Movies: Action – High Budget	126
Appendix A-3: Comic Book Adaptation Movies: Comedy – High Budget	127
Appendix A-4: Comic Book Adaptation Movies: Thriller – High Budget	128
Appendix A-5: Comic Book Adaptation Movies: Action – Low Budget	129
Appendix A-6: Comic Book Adaptation Movies: Comedy – Low Budget	130
Appendix A-7: Comic Book Adaptation Movies: Thriller– Low Budget	131
Appendix A-8: Comic Book Adaptation Movies: Horror	132
Appendix A-9: Comic Book Adaptation Movies: Low Budget All Genres	133
Appendix B: Horror Movies	134
Appendix C: Film Library Deals	136
Appendix D: Direct to DVD Movies	137
Appendix E: User Generated Content Sites Deals	138
Appendix F: General Content / E-Commerce Sites Deals	139
Appendix G-1: Video Game Unit Sales	140
Appendix G-2: Video Game Unit Sales: Comic and Manga Titles Released from 2004 - 2006	141
Appendix H: The Process of Business Valuation and Diligence Procedures	142

APPRAISERS CERTIFICATION AND CONTINGENT AND LIMITING CONDITIONS	144

iii

COMPANY PROFILE

DATE OF VALUE

Many events both within and outside a business’ control can cause significant changes in its value. These changes may occur in, but are not limited to, company management and financial performance, competitive pressures, industry and economic conditions, and investor perceptions. Therefore, the first step in a business appraisal is to determine the precise date of value. The date of value utilized herein is March 31, 2008.

BUSINESS OVERVIEW ¹

Platinum Studios, LLC was founded and operated as a California limited liability company on November 20, 1996. On September 15, 2006, Platinum Studios, LLC filed with the State of California to convert Platinum Studios, LLC into Platinum Studios, Inc., (“Platinum” or the “Company”) a California C corporation. As of February 1, 2008, Platinum became a publicly traded company (ticker symbol: PDOS.OB) on the Over The Counter Bulletin Board (“OTCBB”).

Platinum controls a library consisting of 5,622 characters and is engaged principally as a comics-based entertainment company adapting characters and storylines for production in film, television, publishing and all other media. With characters that have appeared in comics in 25 languages and in more than 50 countries, the Company’s library is continually expanding.

Platinum is working to become the leading independent comic book commercialization producer for the entertainment industry across all media platforms including film, television, direct-to-DVD, digital media, publishing, and video games, creating merchandising vehicles though all retail product lines. This would allow the Company to maximize the potential and value of its content creator relationships and acquisitions, story development and character/franchise brand-building capabilities without investing significant capital.

¹ Obtained from Platinum’s Form 10-K filed on March 31, 2008, and the Company’s website.

PRODUCTS AND SERVICES

Definition of Industry

Platinum is engaged principally as a comics-based entertainment company adapting characters and storylines for production in film, television, publishing and all other media. The Company derives revenues from a number of sources in each of the following areas: Print Publishing, Digital Publishing, Film entertainment, and Merchandise/Licensing. After researching the Company’s products, SP&H determined that there are three Standard Industrial Classification (“SIC”) Codes which the Company could be classified under. These SIC Codes include the following²:

SIC Code 2721 – Periodicals, which primarily engages in publishing periodicals, or in publishing and printing periodicals;

SIC Code 7812 – Motion Picture and Video Tape Production, which primarily engages in the production of theatrical and nontheatrical motion pictures and video tapes for exhibition or sale, including educational, industrial, and religious films; and

SIC Code 7379 – Computer Related Services, Not elsewhere classified, which primarily engages in supplying computer related services, not elsewhere classified.

Platinum’s current and future prospects are largely dependent on the conditions of the industries listed above. These industries are impacted by macroeconomic conditions such as GDP growth, personal and disposable income, unemployment and consumer confidence. As such, SP&H has performed an analysis of the economies in which Platinum markets and intends to market its products (see Economic Analysis section on page 28). Furthermore, we have performed an analysis of the industries listed above (see Industry Analysis section on page 17).

Products³

Platinum is a comic-based entertainment company, focused on adapting it character library to film, television, publishing (both print and digital), video games, merchandising, licensing and other media. Its library consists of 5,622 characters in various genres, including science fiction, fantasy, horror, mystery, romance, comedy, crime, action, and family.

After launching its first graphic novel in December 2006, Platinum has published over 40 comic books and graphic novels for distribution throughout the U.S.⁴

Platinum also owns and operates www.DrunkDuck.com, a user-generated website and one of the industry’s leading web-comic communities.⁵

² U.S. Department of Labor, Standard Industrial Classification (SIC) System Search.

³ See Business Strategy section, page 3, for a detailed description for the Company’s plan to commercialize its products. In addition, please refer to the License Rights section, page 6, for a more detailed description of the genres and a sample of well- known character names.

⁴ Platinum’s Form 10-K as of December 31, 2007.

⁵ Company’s website.

In December 2007, Platinum partnered with Comflix Studios, Inc. to create www.splastk.com (“Splastk”), the first web-syndicated on-demand video network featuring free comic book inspired animated content.

Since 2006, Platinum annually organizes The Comic Book Challenge, an online talent search contest for new and aspiring comic book creators. In 2007, entrants represented nearly two dozen countries, triple the number of countries in 2006.⁶

LOCATIONS AND FACILITIES

Platinum’s headquarters are located at 11400 W. Olympic Boulevard, 14th Floor, Los Angeles, California, which consist of approximately 12,400 square feet. The Company entered into a five year lease term in 2006, expiring on August 31, 2011. The lease payments are as follows:

Time Period	Annual Lease Payment
September 1, 2006 – December 31,2006	$	127,429
January 1, 2007 – December 31, 2007	$	387,383
January 1, 2008 – December 31, 2008	$	402,878
January 1, 2009 – December 31, 2009	$	418,993
January 1, 2010 – December 31, 2010	$	435,753
January 1, 2011 – August 31, 2011	$	298,147

Source: Platinum’s Form 10-K filed on March 31, 2008

BUSINESS STRATEGY⁷

Character Development

Platinum is focused on adding titles and expanding its library with the primary goal of creating new franchise properties and characters. In addition to in-house development and further acquisitions, Platinum is developing content with professionals outside the realm of comic books. The Company has teamed up with screenwriters, producers, directors, movie stars, and novelists to develop entertainment content and potential new franchise properties. Every project is designed for eventual adaptation to all media platforms, including film and television, digital publishing, print publishing, video games and merchandising licensing.

⁶Per Mr. Scott Rosenberg, Chairman and CEO of Platinum Studios, Inc., as quoted in “Platinum Studios Presents The Comic Book Challenge 2008”, Business Wire, March 13, 2008.

⁷Obtained from Platinum’s Form10-K filed on March 31, 2008.

Sales and Distribution

Film Entertainment

Platinum is pursuing a multi-pronged approach to create feature films: 1) licensing characters and stories to third-party producers and/or affiliated major studios for production; 2) securing outside financing to produce the Company’s own slates of films; 3) entering into joint ventures with other studios; and 4) producing direct to DVD films.

Platinum has film and television development deals with several major film producers, and in 2007 the Company successfully sold one property, Unique, to Disney Studios, with the anticipation that it will go into production in 2009. Additionally, effective as of June 2007, Platinum entered into a 2-year option agreement with DreamWorks, in association with Universal Pictures, Paramount Pictures, and Imagine Entertainment, to acquire the film production rights to its property Cowboys & Aliens, the #1-ordered graphic novel in the U.S. in 2006,⁸ with the goal to produce a feature film. This film’s production is anticipated to begin pre-production sometime within the next 24 months.⁹

Platinum also intends to develop television programming using the following approaches: 1) continue the Company’s strategy of licensing characters and stories to third-party producers for sale to broadcast and cable television networks; and 2) secure third-party financing to produce the Company’s own specials and series.

Digital Publishing

Platinum owns the following sites which it uses to distribute digital content:

www.platinumstudios.com– homepage

www.platinumstudioscomics.com– features news on Platinum’s comic books and serves as a distribution channel for comic books

www.pt78mobile.com – a mobile storefront for distribution of digital content

www.drunkduck.com– a web-comics site to host the digital distribution of the Company’s printed comics and a resource for independent comic book creators to post new material

www.kisscomicgroup.com– homepage of the Kiss comic books

www.comicbookchallenge.com– homepage of Platinum’s annual comic book creator talent search

⁸ Entertainment Weekly, January, 2007.

⁹ Platinum’s Form 10-K as of December 31, 2007.

Video Network

In December 2007, Platinum partnered with Comflix Studios, Inc. to create Splastk, the first web-syndicated on-demand video network featuring free comic book inspired animated content. As of the end of 2007, Splastk’s web traffic was at 6 million uniques and over 100 million page views per month.¹⁰

Print Publishing

Platinum has established four channels to sell products:

Direct to comic book store: For its first year of publishing, Platinum established a distribution agreement with Top Cow Productions to list the Company’s titles in Diamond Comic Distributors’ wholesale catalog for retail comic book stores. While this was the primary distribution chain for the Company’s comic books, however, Platinum recently established a direct contractual relationship with Diamond Comic Distributor for the listing of the Company’s properties, giving the Company more flexibility regarding the types and number of products that the Company could offer to this direct market;

Online: Platinum also distributes products to consumers and retailers via the Company’s Web store and comic book site www.PlatinumStudiosComics.com;

Traditional book retail stores: Platinum also distributes products through established distribution companies, such as the Company’s arrangement with Ingram, the leading wholesale distributor of book products. Ingram has agreed to distribute Platinum’s KISS 4K books to book stores and libraries, such as Borders, Barnes & Noble, Hastings and newsstands; and

International distributors: Platinum has established relationships with international publishing entities to distribute translated versions of the Company’s completed series of comic books to over 100 countries throughout the world.

Licensing and Merchandising

Platinum intends to pursue opportunities via the following channels:

General merchandising agreements with third parties in each major territory where films, television and new media will be released;

Collectible merchandising: cultivating the worldwide collector market by allowing licensees in other countries to license abroad;

Licensing the characters to customized advertising campaigns and/or media purchase campaigns;

Licensing the characters to video game producers and distributors;

¹⁰ Per Mr. Scott Schneider, CEO of Comflix Studios, Inc., as quoted in “Splastk - First Web Syndicated Comic Book Fueled Video Network”, PR Newswire, December 17, 2007.

Leveraging individual partners and licensees’ efforts together globally and locally to create critical mass, including promotions, contests, and third-party advertising on radio, television and new media; and

Leveraging its relationships with hundreds of comic book publishers and distributors worldwide for the distribution of the characters in print form.

CUSTOMERS AND CONSUMERS

Platinum has been dependent upon a small number of licensing transactions with major studios and television/cable networks. The comic book characters generally appeals to young adult males ages 18 to 35. However, consumers for Platinum’s planned film and online products are expected to be multiple target audiences, primarily in the U.S. and Europe.

PROPERTY AND EQUIPMENT

Fixture and Equipment

The following table indicates the net book value after accumulated depreciation of the Company’s fixtures and equipment as of December 31, 2007.

Property Plant & Equipment	Value

Office Equipment	$	10,804
Furniture and Fixtures		118,140
Computer Equipment		151,220
Software		91,292
Leasehold Improvements		20,557
Less: Accumulated Depreciation		(134,883	)

Net Book Value	$	257,130

Source: Platinum’s Form 10-K filed on March 31, 2008

There is no independent appraisal of fixtures and equipment available to SP&H.

Licensing Rights

Platinum’s library consists of 5,622 characters in various genres, including science fiction, fantasy, horror, mystery, romance, comedy, crime, action, and family. In addition to a broad spectrum of more than 1,000 characters developed in-house, Platinum also acquired the rights to the characters and storylines of Italian-based SBE Publishing’s Horror/Sci-Fi Universe, and French-based Hexagon Comics, as well as U.S.-based Top Cow and Barry Ween. Platinum’s library comprises of the following characters:

Universe of Characters	Origins	# of Characters

SBE Horror / Sci-Fi	Europe		1,048
Awesome Comics/RIP Media	North America		404
Top Cow Comics	North America		573
Hexagon Comics	Europe		702
Platinum Studios Macroverse	Worldwide		1,200+
Platinum Studios Acquisitions	Worldwide		1,680+

Total			5,622

Source: Provided by management.

The following describes the Company’s library of characters in more detail:¹¹

SBE Horror/Sci-Fi

Characters: 1,048

Dylan Dog acquired from SBE: 319 characters

Legs Weaver acquired from SBE: 271 characters

Nathan Never acquired from SBE: 456 characters

On the SBE properties, the Company has acquired all right, title and interest in and to all 3 properties (Dylan Dog, Legs Weaver, and Nathan Never), excluding only comic book print publication rights. Platinum originally had 10 years in which to produce a motion picture or television program based on these properties to preclude a reversion of rights. In connection therewith, on February 29, 2008, Platinum received a notice of reversion; however, the Company has 12 months from the date of such notice to commence principal photography on a picture, whereupon reversion rights would be terminated. The Company has a reasonable belief that it will commence principal photography on a picture by February 28, 2009 thereby terminating any reversion rights.

Awesome Comics/RIP Media

Characters: 404

Platinum has all rights worldwide, not including print comic publishing rights. Platinum has the exclusive right to enter into agreements related to the licensing of motion picture rights and allied/ancillary rights until the date upon which Platinum Studios’ CEO, Mr. Scott Mitchell Rosenberg, is no longer at least one of the following: (a) an executive officer of the Company; (b) a member of the Board of Directors of the Company, or (c) holds at least 30% of the outstanding capital stock of the Company.

¹¹Per Platinum’s Form 10-K filed on March 31, 2008.

Top Cow

Characters: 573

Platinum has all rights for film and television worldwide. Publishing is excluded and certain non-film ancillary rights subject to preexisting deals (certain properties only) are also excluded. Platinum has the exclusive right to enter into agreements related to the licensing of motion picture rights and allied/ancillary rights through January 30, 2010. The rights can be extended through January 30, 2011 with an additional payment of $350,000 on or before June 30, 2010.

Hexagon Library from Mosaic Multimedia

Characters: 702

Platinum has all rights worldwide, not including print comic publishing rights, contingent on verification of chain-of-title and European legal documentation. Platinum has the exclusive right to enter into agreements related to the licensing of motion picture rights and allied/ancillary rights through January 1, 2014. The rights can be extended through January 1, 2016 with an additional payment of $196,000 on or before June 1, 2011. Platinum can also have the rights in perpetuity with a payment of $600,000 by January 1, 2016. The agreement requires the formation of an LLC co-owned by Mosaic Multimedia and Platinum Studios with Platinum acting as manager.

Platinum Studios Macroverse

Characters: 1,200+

Platinum has all rights worldwide, in all media.

Platinum Studios Acquisitions

Characters: 1,680+

Platinum has all rights worldwide, in all media.

COMPANY ORGANIZATION AND STRUCTURE

The following sections discuss Platinum’s organization, including its ownership, management, and employees.

Ownership

On January 10, 2008, the Securities and Exchange Commission declared effective the Form SB-2 registration statement originally filed by Platinum on September 4, 2007. Under the Form SB-2, Platinum provided a prospectus to offer the resale by the selling stockholders of up to 66,255,825 shares. On January 18, 2008, Platinum commenced a private placement for the sale of up to 15,000,000 shares of the Company’s common stock at a purchase price of $0.15 per share, for an aggregate purchase price of up to $2,250,000. As of February 1, 2008, Platinum became a publicly traded company (ticker symbol: PDOS.OB) on the Over The Counter Bulletin Board (“OTCBB”). For the quarter ended March 31, 2008, the stock prices per common share reached a high of $0.23 and a low of $0.09. The number of outstanding shares, as of March 31, 2008, was 216,921,227, which indicated a market capitalization of $34.7 million. Platinum successfully raised approximately $5.0 million from the initial private placement offering (“PPM”) and plans to raise additional $2.2 million in a second private placement round.

The following table displays the Company’s shareholders and the number of shares held on a fully diluted basis as of January 9, 2008:

Name	Ownership Percentage			No. Shares

Common stock resale offering		24.4	%		Up to 49,047,250
Charlotte Rosenberg		8.6	%		17,208,575
Total Common Stock offered		32.92	%		Up to 66,255,825

Scott Rosenberg		63.7	%		128,250,000
Brian Altounian		9.2	%		19,940,000
Helene Presky		3.7	%		8,000,000
Total Executive Shareholders		76.6	%		135,000,000

Total		100	%		Up to 201,255,825

Source: Platinum’s Form 10-K filed on March 31, 2008

Executive Management

As of January 9, 2008, the executive management, where indicated, was comprised of the following individuals:

Scott Mitchell Rosenberg – Chairman & Chief Executive Officer

Mr. Rosenberg founded Platinum Studios, LLC in 1996 and has served as the Chairman of Platinum Studios. As founder and head of Malibu Comics, Mr. Rosenberg produced the Men In Black comic book, which he took to Sony to become a billion-dollar film franchise. Malibu was bought by Marvel Comics in 1994. Mr. Rosenberg’s salary was $34,615 in 2006 and $300,000 in 2007.

Brian Kenneth Altounian – President, Chief Operating Officer and Director

Mr. Altounian has been Chief Operating Officer since June 2005, and was appointed to serve as President in September 2006. Mr. Altounian's background included business development, finance, operations and administration for a variety of start-ups, Fortune 100 companies, and public and private organizations. Mr. Altounian had worked extensively in the entertainment and high-tech industries. Mr. Altounian’s salary was $63,961 in 2005, $299,039 in 2006 and $300,000 in 2007.

Jill Zimmerman – Director

Ms. Zimmerman served as a director since September 16, 2006. Ms. Zimmerman was Vice President at the Alford Group, a consulting firm based in Evanston, Illinois. Ms. Zimmerman previously served as a Crisis Program Supervisor and Director of Development at Alternatives, Inc. a non-profit corporation from November 1994 through May 2005.

Helene Pretsky – Corporate Secretary and General Counsel

Ms. Pretsky has served as the Company’s general counsel since January 2006 and its corporate secretary and Executive Vice President since October 1 2006. Ms. Pretsky, a securities/corporate attorney with expertise in intellectual property, had focused her twenty-year legal career on representing start-up, early-stage revenue companies in the high-tech, emerging technologies and entertainment industries. Ms. Pretsky’s salary was $161,187 in 2006, and $200,000 in 2007.

Management

In addition to executive management above, the following table lists the names and titles of Platinum’s key managers:

Name	Title	Joined Platinum in

Norman Lambert	Executive Vice President, Business Development	2006

Sean O’Reilly	Head of Publishing and Animation	2007

Richard Marincic	Director of Film/Television Department	2004

Dan Forcey	Vice President, Content Development	2007

Zachary Pennington	Vice President, Creative Design	2006

Source: Platinum’s Form SB-2 filed on January 10, 2008.

Employees

As of March 22, 2008, Platinum had 23 full-time and 3 part-time employees.

FINANCIAL ANALYSIS

SP&H analyzed Platinum’s audited financial statements for the fiscal years ending December 31, 2002 through 2007 (See Schedules 1 and 2).

Income Statements (Schedule 1)

Total Revenues

The following chart displays Platinum’s Total Revenues from 2002 through 2007:

Source: Audited financial statements for 2002 through 2006,

10-K as of December 31, 2007.

Total Revenues increased from $334,800 in 2002 to $1,956,054 in 2007 at an annual compound rate (“ACR”) of 42.3%. As of the date of value, Platinum had been dependent upon a small number of licensing transactions with major studios and television/cable networks. Total Revenues in 2007 was $1,956,054 compared to $180,500 in 2006. The increased Total Revenues was primarily attributable to an increase in option fee revenue of $860,500 and first look revenue of $450,000.

Cost of Revenues

Platinum did not incur any Cost of Revenues from 2002 though 2006. In 2007, Cost of Revenues increased to $278,442, representing 14.2% of Total Revenues.

Total Operating Expenses

The following graph represents Platinum’s Total Operating Expenses from 2002 through 2007:

Source: Audited financial statements for 2002 through 2006,

10-K as of December 31, 2007.

Total Operating Expenses increased from $541,209 in 2002 to $6,302,399 in 2007 as the Company expanded its operations. The majority of Operating Expenses was due to Salaries, as the Company actively recruited executives and other talents to help exploit the Company’s library of comic book characters.

Operating Income (Loss)

Platinum had Operating Losses from 2002 through 2007, as low as -$21,730 in 2004 and as high as -$4,624,787 in 2007. This was due to the establishment and expansion of the business.

Net Income (Loss)

Platinum had Net Losses from 2002 through 2007, as low as -$354,472 in 2004 and as high as -$5,192,815 in 2007. This was due to the establishment and expansion of the business.

Balance Sheets (Schedule 2)

Assets

Total Current Assets increased significantly from $15,137 in 2002 to $28,027 in 2003, declined to $8,141 in 2004, and then rose to $449,138 in 2006 but decreased to $237,792 in 2007. The large decrease occurring between 2006 and 2007 was due to an approximately $326,990 decrease in Cash.

Property Plant & Equipment accounted for $36,632 in 2002, declined to $10,408 in 2004, and then rose to $268,981 in 2006 but decreased to $257,130 in 2007.

Character Development Costs increased from $148,573 in 2002 to $563,921 in 2004 as the Company expanded its library of characters.

Total Assets grew from $201,827 in 2002 to $583,455 in 2004, decreased to $514,720 in 2005, and then rose to $1,141,088 in 2006 but decreased to $802,301 in 2007 as a result of the factors discussed above.

Liabilities

Total Current Liabilities decreased from $1,137,271 in 2002 to $128,564 in 2004 and grew to $3,798,650 in 2007. During the period under review, Current Liabilities consisted mainly of Accounts Payable, Accrued Expenses and Short-term Notes Payable. Total Non-Current Liabilities increased from $5,065,305 in 2002 to $9,664,312 in 2005 and decreased to $2,698,338 in 2007 as the Company repaid the uncollateralized loans received from Rosenberg IP in 2004. As a result of the factors described above, Total Liabilities varied between $5,672,224 and $9,664,312 during the period under review.

Shareholders’ Equity

Total Shareholders’ Equity was composed of Common Stock, Additional Paid-in Capital, and Retained Deficit. As Platinum was a start-up company and generated Net Losses from 2002 through 2007, Total Shareholders’ Equity was negative during the period under review.

The Company’s December 31, 2007 Form 10-K states that Platinum plans to seek additional financing in order to execute its business plan, but there is no assurance the Company will be able to obtain such financing on terms favorable to the Company or at all. These items raise substantial doubt about the Company’s ability to continue as a going concern, which is mentioned in the independent auditors’ cover letter to the audited financial statements for fiscal year 2007.

Since Platinum had minimum Revenues and significant Net Losses during the period under review, and the Company’s business plan is to generate significant film entertainment and online revenues in the next several years through active exploitation of its comic book character library, we have given limited consideration to Platinum’s historical financial performance as a basis for our valuation. However, our valuation takes into account the risks of the Company not obtaining adequate financing and its ability to continue as a going concern.

SUMMARY

Platinum’s Total Revenues increased at an ACR of 42.3% from 2002 through 2007. Platinum did not incur any Cost of Revenues from 2002 though 2006. In 2007, Cost of Revenues represented 14.2% of Total Revenues. Total Operating Expenses increased during the same period as the Company actively recruited executives and other talent. Platinum had Operating Losses and Net Losses from 2002 through 2007, due to the establishment and expansion of the business.

Total Assets grew at an ACR of 31.8% from 2002 through 2007. Total Liabilities varied between $5,672,224 and $9,664,312 during the same period. Total Shareholders’ Equity was negative due to Net Losses from 2002 through 2007.

The Company’s December 31, 2007 Form 10-K stated that Platinum plans to seek additional financing in order to execute its business plan, but that there is no assurance the Company will be able to obtain such financing on terms favorable to the Company or at all.

We have given limited consideration to Platinum’s historical financial performance as a basis for our valuation since the Company’s business plan is to generate significant film entertainment and online revenues in the next several years through active exploitation of its comic book character library.

Schedule 1

Platinum Studios, Inc.

Income Statements

For the Years Ending December 31,

	2002					2003					2004					2005					2006					2007
	(1)					(2)					(3)					(4)					(5)					(6)

Total Revenues	$	334,800		100.0	%	$	120,667		100.0	%	$	677,406		100.0	%	$	162,500		100.0	%	$	180,500		100.0	%	$	1,956,054		100.0	%

Cost of Revenues
Fees		-					-					-					-					-				$	171,229		8.8	%
Merchandising		-					-					-					-					-					10,217		0.5	%
Other		-					-					-					-					-					96,996		5.0	%
Total Cost of Revenues	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	278,442		14.2	%

Gross Profit	$	334,800		100.0	%	$	120,667		100.0	%	$	677,406		100.0	%	$	162,500		100.0	%	$	180,500		100.0	%	$	1,677,612		85.8	%

Operating Expenses
Operating Expenses (excluding Depreciation)		-					-					-				$	1,607,672		989.3	%	$	3,168,078		1755.2	%	$	5,176,142		264.6	%
Research and Development		-					-					-					243,833		150.1	%		764,282		423.4	%		960,396		49.1	%
Depreciation and Amortization		-					-					-					7,436		4.6	%		73,486		40.7	%		165,861		8.5	%
Total Operating Expenses	$	541,209		161.7	%	$	633,568		525.1	%	$	699,136		103.2	%	$	1,858,941		1144.0	%	$	4,005,846		2219.3	%	$	6,302,399		322.2	%

Operating Income (Loss)	$	(206,409	)	-61.7	%	$	(512,901	)	-425.1	%	$	(21,730	)	-3.2	%	$	(1,696,441	)	-1044.0	%	$	(3,825,346	)	-2119.3	%	$	(4,624,787	)	-236.4	%

Other Expenses
Loss on Disposition of Assets	$	(13,849	)	-4.1	%	$	(10,098	)	-8.4	%	$	(4,829	)	-0.7	%	$	0		0.0	%	$	(33,260	)	-18.4	%	$	(24,000	)	-1.2	%
Interest Expense		(396,009	)	-118.3	%		(299,771	)	-248.4	%		(327,913	)	-48.4	%		(390,288	)	-240.2	%		(391,745	)	-217.0	%		(544,028	)	-27.8	%
Other Income		0		0.0	%		0		0.0	%		0		0.0	%		5,814		3.6	%		2,571		1.4	%		0		0.0	%
Other Expenses		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		(25,000	)	-13.9	%		0		0.0	%
Total Other Expenses	$	(409,858	)	-122.4	%	$	(309,869	)	-256.8	%	$	(332,742	)	-49.1	%	$	(384,474	)	-236.6	%	$	(447,434	)	-247.9	%	$	(568,028	)	-29.0	%

Net Income (Loss)	$	(616,267	)	-184.1	%	$	(822,770	)	-681.9	%	$	(354,472	)	-52.3	%	$	(2,080,915	)	-1280.6	%	$	(4,272,780	)	-2367.2	%	$	(5,192,815	)	-265.5	%

Sources: Platinum Studios, Inc. Audited Financial Statements for the periods ending December 31, 2002 through 2007.

SANLI PASTORE & HILL, INC.

Schedule 2

Platinum Studios, Inc.

Balance Sheets

As of December 31,

	2002					2003					2004					2005					2006					2007
	(1)					(2)					(3)					(4)					(5)					(6)
Assets

Current Assets
Cash	$	8,380		4.2	%	$	20,642		9.5	%	$	0		0.0	%	$	11,843		2.3	%	$	331,435		29.0	%	$	4,445		0.6	%
Accounts receivable		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		44,695		5.6	%
Other receivable		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		20,000		2.5	%
Prepaid expenses		6,757		3.3	%		7,385		3.4	%		8,141		1.4	%		89,347		17.4	%		105,603		9.3	%		109,124		13.6	%
Deposits		0		0.0	%		0		0.0	%		0		0.0	%		1,561		0.3	%		0		0.0	%		0		0.0	%
Retainers		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%
Inventory		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		59,528		7.4	%
Stock offering costs		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		12,100		1.1	%		0		0.0	%
Total Current Assets	$	15,137		7.5	%	$	28,027		12.9	%	$	8,141		1.4	%	$	102,751		20.0	%	$	449,138		39.4	%	$	237,792		29.6	%

Property and Equipment
Office equipment	$	65,218		32.3	%	$	65,218		29.9	%	$	65,218		11.2	%	$	69,633		13.5	%	$	10,804		0.9	%	$	10,804		1.3	%
Furniture and fixtures		22,347		11.1	%		22,347		10.2	%		22,347		3.8	%		24,108		4.7	%		107,317		9.4	%		118,140		14.7	%
Computer equipment		53,855		26.7	%		22,350		10.2	%		12,226		2.1	%		37,974		7.4	%		105,054		9.2	%		151,220		18.8	%
Software		0		0.0	%		0		0.0	%		0		0.0	%		3,345		0.6	%		85,576		7.5	%		91,292		11.4	%
Leasehold improvements		0		0.0	%		0		0.0	%		0		0.0	%		23,728		4.6	%		20,557		1.8	%		20,557		2.6	%
Total Property and Equipment		141,420		70.1	%		109,915		50.4	%		99,791		17.1	%		158,788		30.8	%		329,308		28.9	%		392,013		48.9	%
Less: Accumulated depreciation		(104,788	)	-51.9	%		(88,318	)	-40.5	%		(89,383	)	-15.3	%		(96,819	)	-18.8	%		(60,327	)	-5.3	%		(134,883	)	-16.8	%
Net Property and Equipment	$	36,632		18.2	%	$	21,597		9.9	%	$	10,408		1.8	%	$	61,969		12.0	%	$	268,981		23.6	%	$	257,130		32.0	%

Character Development Costs
Projects in process	$	104,521		51.8	%	$	160,126		73.4	%	$	552,724		94.7	%	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%
Completed Projects		44,052		21.8	%		7,329		3.4	%		11,197		1.9	%		0		0.0	%		0		0.0	%		0		0.0	%
Net Character Development Costs	$	148,573		73.6	%	$	167,455		76.8	%	$	563,921		96.7	%	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%

Other Assets
Web Sties	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	64,000		5.6	%	$	40,000		5.0	%
Long Term Deposits		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		39,404		3.5	%		39,118		4.9	%
Intangible Assets
Character Library - Top Cow		0		0.0	%		0		0.0	%		0		0.0	%		350,000		68.0	%		350,000		30.7	%		350,000		43.6	%
Character Library Amortization - Top Cow		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		(30,435	)	-2.7	%		(121,739	)	-15.2	%
Net Intangible Assets		0		0.0	%		0		0.0	%		0		0.0	%		350,000		68.0	%		319,565		28.0	%		228,261		28.5	%
Other		1,485		0.7	%		985		0.5	%		985		0.2	%		0		0.0	%		0		0.0	%		0		0.0	%
Total Other Assets	$	1,485		0.7	%	$	985		0.5	%	$	985		0.2	%	$	350,000		68.0	%	$	422,969		37.1	%	$	307,379		38.3	%

Total Assets	$	201,827		100.0	%	$	218,064		100.0	%	$	583,455		100.0	%	$	514,720		100.0	%	$	1,141,088		100.0	%	$	802,301		100.0	%

Liabilities and Stockholders' Equity

Liabilities

Current Liabilities
Bank overdraft	$	0		0.0	%	$	0		0.0	%	$	5,852		1.0	%	$	0		0.0	%	$	0		0.0	%	$	89,665		11.2	%
Line of credit		1,000,000		495.5	%		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%
Accounts payable		134,145		66.5	%		105,653		48.5	%		109,802		18.8	%		131,131		25.5	%		231,849		20.3	%		663,848		82.7	%
Accrued expenses		3,126		1.5	%		0		0.0	%		12,910		2.2	%		64,352		12.5	%		192,118		16.8	%		788,868		98.3	%
Loans payable to member		0		0.0	%		253,308		116.2	%		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%
Deferred revenue		0		0.0	%		0		0.0	%		0		0.0	%		175,000		34.0	%		750,000		65.7	%		100,000		12.5	%
Short-term notes payable to shareholder		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		1,004,078		88.0	%		1,889,908		235.6	%
Related party payable		0		0.0	%		0		0.0	%		0		0.0	%		20,000		3.9	%		243,079		21.3	%		193,079		24.1	%
Capital leases payable, current		0		0.0	%		0		0.0	%		0		0.0	%		6,441		1.3	%		55,820		4.9	%		73,282		9.1	%
Total Current Liabilities	$	1,137,271		563.5	%	$	358,961		164.6	%	$	128,564		22.0	%	$	396,924		77.1	%	$	2,476,944		217.1	%	$	3,798,650		473.5	%

Long Term Liabilities
Accrued interest due to member	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	1,067,465		207.4	%	$	75,031		6.6	%	$	60,479		7.5	%
Deferred Revenue		486,667		241.1	%		502,367		230.4	%		625,000		107.1	%		750,000		145.7	%		0		0.0	%		0		0.0	%
Due to Related Party		0		0.0	%		0		0.0	%		20,000		3.4	%		0		0.0	%		0		0.0	%		0		0.0	%
Long-term portion of capital lease obligations		0		0.0	%		0		0.0	%		0		0.0	%		13,591		2.6	%		148,721		13.0	%		106,395		13.3	%
Long-term debt payable to member		4,578,638		2268.6	%		6,180,235		2834.1	%		6,987,872		1197.7	%		7,436,332		1444.7	%		3,326,107		291.5	%		2,531,464		315.5	%
Total Long Term Liabilities	$	5,065,305		2509.7	%	$	6,682,602		3064.5	%	$	7,632,872		1308.2	%	$	9,267,388		1800.5	%	$	3,549,859		311.1	%	$	2,698,338		336.3	%

Total Liabilities	$	6,202,576		3073.2	%	$	7,041,563		3229.1	%	$	7,761,436		1330.3	%	$	9,664,312		1877.6	%	$	6,026,803		528.2	%	$	6,496,988		809.8	%

Stockholders' Equity (Deficit)

Common stock, $.0001 par value, 500,000,000 shares authorized, 158,056,000 issued, and outsatnding at December 31, 2006	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	15,806		1.4	%	$	20,126		2.5	%
Additional paid in-capital		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		(628,741	)	-55.1	%		3,750,782		467.5	%
Members equity/ (deficit)		(6,000,749	)	-2973.2	%		(6,823,509	)	-3129.1	%		(7,177,981	)	-1230.3	%		(9,149,592	)	-1777.6	%		0		0.0	%		0		0.0	%
Retained earnings/ (deficit)		0		0.0	%		0		0.0	%		0		0.0	%		0		0.0	%		(4,272,780	)	-374.4	%		(9,465,595	)	-1179.8	%
Total stockholders' equity/ (deficit)	$	(6,000,749	)	-2973.2	%	$	(6,823,509	)	-3129.1	%	$	(7,177,981	)	-1230.3	%	$	(9,149,592	)	-1777.6	%	$	(4,885,715	)	-428.2	%	$	(5,694,687	)	-709.8	%

Total Liabilities and Stockholders' Equity	$	201,827		100.0	%	$	218,054		100.0	%	$	583,455		100.0	%	$	514,720		100.0	%	$	1,141,088		100.0	%	$	802,301		100.0	%

Sources: Platinum Studios, Inc. Audited Financial Statements for the periods ending December 31, 2002 through 2007.

SANLI PASTORE & HILL, INC.

INDUSTRY ANALYSIS

INTRODUCTION

Many factors can contribute to the outlook for an industry. In addition to the intensity of competition, the health of an industry may be shaped by demand from its customer base. Looming technological developments, the constant threat of substitute products or services, and broad economic factors may also play a role in any industry’s future.

To evaluate Platinum Studios, it is necessary to analyze the industry conditions under which it operates. Platinum operates as a comic-based entertainment company, whose core business is bringing comic book projects to feature film and television. The Company derives its revenues from the following sources: (1) film entertainment; (2) merchandising and licensing; (3) digital publishing; (4) print publishing; and (5) video games. Therefore, in the following sections, SP&H analyzed the U.S. (1) film entertainment market; (2) merchandising and licensing market (U.S. and international); (3) digital publishing industry; (4) comic book publishing industry; and (5) video games industry.

U.S. FILM ENTERTAINMENT MARKET

Industry Growth

The U.S. film entertainment industry is largely located in California, which includes Hollywood, and accounts for about 70.0% of total domestic film production.¹² In general, the films made in Hollywood dominate the domestic and international film market. The following graph shows U.S. box office revenues from 2001 to 2007:

Source: Theatrical Market Statistics 2007, Motion Picture Association of America.

¹²Motion Picture and Video Production, IBISWord Industry Report, October 2007.

U.S. box office revenues increased from $8.1 billion in 2001 to $9.6 billion in 2007, at an ACR of 2.9%. U.S. box office revenues grew significantly in 2001 and 2002, at growth rates of 8.8% and 14.1%, respectively. In 2003, U.S. box office revenues decreased slightly by 1.2%, and increased slightly by 0.5% in 2004. U.S. box office revenues declined 4.2% in 2005, after which revenues rose 3.5% to reach $9.1 billion in 2006. In 2007, U.S. box office revenues were at a new all-time record of $9.6 billion.

Number of Films Released

The following graph illustrates the historical growth of the number of U.S. films released from 2001 to 2007:

Source: Theatrical Market Statistics 2007, Motion Picture Association of America.

The number of films released increased from 483 in 2001 to 603 in 2007, at an ACR of 3.8%. Growth rates ranged from a low of -3.5% in 2002 to a high of 11.6% in 2004.

Comic Book Adaptation Movies

The following graph shows U.S. box office revenues of comic book adaptation movies from 2002 to 2007:

Source: Box Office Mojo, www.boxofficemojo.com.

U.S. box office revenues of comic book adaptation movies increased from $780.9 million in 2002 to $888.6 million in 2007, at an ACR of 2.6%. Annual revenues during the same period ranged from $505.0 million in 2006 to $888.6 million in 2007, while annual growth rates were lowest in 2003 at -30% and highest in 2007 at 76%. The year 2002 included the release of Spider Man and Men in Black II. As movie making technology becomes more easily accessible, the production of comic book movies has become more popular. This has also helped the success of independent movies such as 30 Days of Night.

In regards to the comic book market, the Company’s Form 10-K states the following:

The comic book market is highly sought after by the entertainment industry for the purpose of mining for new material. As proof of this appeal, two recent trade articles have pinpointed the virtues of comics publishing as a credible source of new material in Hollywood. Daily Variety and Hollywood Reporter have each reported separately that the big moneymakers are fresh concepts and comic books. “Among the better averages were pics based on comic books: There were only 13 such films, and the $2.8 billion total means that each comic book hit averaged a $215 million gross. Which explains why Hollywood is so hot to film comic books."¹³

Industry Concentration

According to Box Office Mojo, an online movie publication and box office tracker, the movie releases of six film distribution companies typically accounts for approximately 80% of box office revenues in the U.S.¹⁴. The following table provides market share data for major distributors in 2007:

¹³How to make box office gold, Marc Graser, Daily Variety, 07/06/2007.

¹⁴Box Office Mojo, http://www.boxofficemojo.com

Distributor	Market Share

Paramount		15.5	%
Warner Bros.		14.7	%
Buena Vista		14.0	%
Sony/Columbia		12.9	%
Universal		11.4	%
20th Century Fox		10.5	%
New Line		5.0	%
Lionsgate		3.8	%
MGM/UA		3.8	%
Fox Searchlight		1.4	%
Miramax		1.3	%
Rogue Pictures		0.8	%
Total major distributors		95.1	%
Others		4.9	%
Total		100.0	%

Source: Box Office Mojo.

The industry is forecasted to grow at an average annual rate of 3.7% over the next five years, 2008 through 2012.¹⁵

U.S. AND INTERNATIONAL LICENSING MARKET

Industry Growth

According to License! Global Magazine, the U.S. remained the largest market, accounting for 65% of the total worldwide retail sales of licensed merchandise in 2006.¹⁶ The following graph shows worldwide retail sales of licensed products from 2001 to 2006:

Source: 2007 Industry Annual Report, License! Global Magazine.

¹⁵Motion Picture and Video Production, IBISWord Industry Report, October 2007.

¹⁶ 2007 Industry Annual Report, License! Global Magazine.

Worldwide retail sales of licensed products increased from $165.6 billion in 2001 to $187.4 billion in 2006, at an ACR of 2.5%. After a dip in 2001, worldwide retail sales of licensed products increased by 4.3% in 2002, and then decreased slightly by 0.5% in 2003. From 2004 to 2006, revenues continued to grow, with growth rates of 1.5%, 3.2%, and 3.6%, respectively.

Character Licensing Growth

Character licensing is the largest category in the total worldwide retail sales of licensed products. The following graph shows worldwide retail sales of licensed products from 2001 to 2006:

Source: 2007 Industry Annual Report, License! Global Magazine.

Worldwide character licensing revenues increased from $38.5 billion in 2001 to $42.7 billion in 2006, at an ACR of 2.1%. Overall, character licensing revenues mirrored the trend of the total worldwide licensing revenues. After a dip in 2001, character licensing revenues increased by 4.4% in 2002, and then decreased by 2.3% in 2003. From 2004 to 2006, revenues continued to grow, with growth rates of 1.8%, 2.9%, and 3.8%, respectively.

U.S. DIGITAL PUBLISHING INDUSTRY

With the advent of significant technological improvements, the digital publishing industry has grown substantially since late 1990. The increasing popularity and availability of electronic books are being driven largely by the proliferation of portable devices and software that made it possible for one to conveniently download and read content via the Internet. According to the International Digital Publishing Forum, eBooks represents the fastest growing segment of the publishing industry.¹⁷ The following graph shows U.S. trade wholesale eBooks sales from 2002 to 2007:

¹⁷ http://www.idpf.org.

Source: International Digital Publishing Forum.

U.S. wholesale eBooks sales increased from $5.8 million in 2002 to $31.8 million in 2007, at an ACR of 40.6%. U.S. wholesale eBooks sales experienced significant growth in 2003 and 2004, with growth rates of 26.7% and 31.0%, respectively. After moderate growth in 2005, U.S. wholesale eBooks sales rose 108.7% to reach $22.6 million in 2006. In 2007, U.S. wholesale eBooks sales reached $31.8 million, with a growth rate of 40.7%.

According to Standard & Poor’s, internet advertising is the fastest growing of all direct marketing channels, driven largely by advertisers’ desire to tap into the rapidly growing online retail market. The following graph shows U.S. internet advertising revenues from 2000 to 2007:

Source: Internet Advertising Revenue Report, Internet Advertising Bureau and PricewaterhouseCoopers.

U.S. internet advertising revenues increased from $8.1 billion in 2000 to $21.1 billion in 2007, at an ACR of 14.7%. Growth rates in 2001 and 2002 were negative due to poor economic conditions and the dotcom crash. From 2003 through 2007, U.S. internet advertising revenues experienced substantial growth, during which period growth rates varied from 21.7% to 35.2%.

U.S. COMIC BOOK PUBLISHING INDUSTRY

Industry Growth

According to Comics Buyer's Guide, one of the longest-running periodical reporting on the comic book industry, the U.S. comics industry saw its seventh consecutive year of increased sales in 2007. The following graph shows the estimated overall U.S. comic book sales from 2001 to 2007:

Source: Comics Buyer’s Guide.

U.S. comic book sales increased from $273 million in 2001 to $680 million in 2007, at an ACR of 16.5%. From 2001 through 2007, U.S. comic book sales experienced substantial growth, during which period growth rates varied from 11.9% to 20.0%.

Comic Book Market Shares

According to Diamond Comic Distributors, the largest comic book distributor that dominates the direct market in the U.S., the comic books published by Marvel and DC Comics account for approximately 70% of its comic book sales to retailers. The following table provides market share data for major comic book publishers as of December 2007:

Distributor	Market Share

Marvel		38.7	%
DC Comics		32.7	%
Dark Horse		5.36	%
Image		3.69	%
IDW		2.38	%
Viz		1.84	%
Tokyopop		1.82	%
Dynamic Forces		1.44	%
Wizard		1.37	%
Eaglemoss		1.02	%
Total major distributors		90.32	%
Others		9.68	%
Total		100.0	%

Source: Comics Buyer’s Guide.

U.S. VIDEO GAME INDUSTRY

Industry Growth

The following graph shows North America video game revenues from 2001 to 2007:

Source: NPD Group – Software revenues.

North America video game sales increased from $6.1 billion in 2001 to $10.0 billion in 2007, at an ACR of 8.7%. The growth rate in 2001 was negative because of poor economic conditions. Video game sales grew 14.3% in 2002. From 2003 through 2006, growth rates of video game sales were moderate and revenues increased from $7.0 billion in 2003 to $8.0 billion in 2006. In 2007, video games sales in North America increased significantly to $10.0 billion, at a growth rate of 25.4%, largely due to the release of video games for new console platforms.

SUMMARY

U.S. box office revenues increased at an ACR of 2.9% from 2001 through 2007. U.S. box office revenues of comic book adaptation movies increased at an ACR of 2.6% from 2002 through 2007. The industry is forecasted to grow at an average annual rate of 3.7% over the next five years, from 2008 to 2012.

Worldwide retail sales of licensed products increased at an ACR of 2.5% from 2001 through 2006. Character licensing is the largest category in the total worldwide retail sales of licensed products, and the revenues increased at an ACR of 2.1% during the same period.

U.S. wholesale eBooks sales increased at an ACR of 40.6% from 2002 through 2007. U.S. internet advertising revenues increased at an ACR of 14.7% from 2000 through 2007.

U.S. comic book sales increased at an ACR of 16.5% from 2001 through 2007. According to Diamond Comic Distributors, the comic books published by Marvel and DC Comics account for approximately 70% of its comic book sales to retailers.

North America video game revenues increased at an ACR of 8.7% from 2001 to 2007.

COMPETITION ANALYSIS

Platinum is a comic-based entertainment company, focused on adapting its character library to film, television, publishing (both print and digital), merchandising, licensing and all other media. Its library consists of 5,622 characters in various genres, including science fiction, fantasy, horror, mystery, romance, comedy, crime, action, and family. Our research and management interviews revealed that the Company had the following main competitors in the entertainment industry¹⁸:

Company	Divisions		Founded		Assets		Revenue		Content Library
					(Billions)		(Billions)
Marvel Entertainment, Inc.		Licensing (consumer products, studio media licensing, destination-based entertainment, promotions, publications); Publishing (comic books based on the Marvel Universe); Toys; Film Production		1933	$	0.82	$	0.49		Over 5,000 characters

DC Comics (Warner Bros. Entertainment, Inc.)		Licensing; Publishing(comic books and graphic novels: Vertigo - mature reader line & WildStorm - cutting edge action line)		1935		n/a		n/a		n/a

Walt Disney Company		Median Network(broadcast television network, television production and distribution operations, Internet and mobile);ABC Television Network(multiple TV and radio stations);Parks and Resorts(theme parks, hotels, retail, and dining);Studio Entertainment;(production and acquisition of motion pictures, direct-to-DVD, musical recordings, and live stage plays);Consumer Products(licenses Disney characters)		1923	$	62.77	$	36.38		n/a

DreamWorks Animation SKG, Inc.		Animation(computer generated animated feature films for theatrical, home entertainment, and TV releases)		1985	$	1.33	$	0.77		n/a

¹⁸Source: Yahoo! Finance, companies’ 10-Ks and 10-Qs. Assets data is obtained from most recent quarter available, and revenue data is for the trailing twelve months.

Company	Divisions		Founded		Assets		Revenue		Content Library
					(Billions)		(Billions)
Lions Gate Entertainment Corp.		Production and Distribution of Film Entertainment(theatrical, TV, home entertainment, family entertainment, video-on-demand, and music content)		1986	$	1.38	$	1.16		8,100 motion pictures 3,800 TV episodes

Time Warner, Inc.		AOL(online advertising services, Internet access subscription services);Cable(video, high-speed data services, and Internet access);Film entertainment (production and distribution of theatrical motion pictures, TV shows, animation and other programming, licensees rights);Networks(domestic and international networks and pay TV programming services);Publishing(magazines and websites)		1985	$	1,338	$	46.48		n/a

Platinum’s main competitors have established superior longevity of operations, depth in management and financial performance and resources. However, the size of Platinum’s character library is comparable to Marvel and DC Comic’s and more diverse with respect with types of genre, and offers story lines of more recently developed characters beyond superhero status. Overall, Platinum operates in a niche but competitive environment. The Company’s competitive strategy is to promote and commercialize its more diverse and newer characters to its multiple target audiences.

ECONOMIC ANALYSIS

INTRODUCTION

An analysis of the economic environment is used in developing reasonable expectations about a business’ future prospects. The economy’s condition may have a significant impact on investment prospects and, therefore, the related valuation of a business. Platinum was a comic-based entertainment company, focused on adapting it character library to film, television, publishing (both print and digital), merchandising, licensing and other media, mainly throughout the U.S. and Europe. Therefore, we analyze the U.S. and European economies in the sections that follow.

THE U.S. ECONOMY

Growth

In the second half of 2007, the U.S. economy began to show signs of a slowdown due to the global credit crunch and mounting sub-prime mortgage concerns. To avert further economic decline and stem a potential liquidity crisis, the Federal Reserve has reduced the Federal Funds rate six consecutive times since the credit crisis erupted in August 2007. The following graph illustrates quarterly Gross Domestic Product (“GDP”) growth in the U.S. from first quarter of 2000 through 2007:

Source: U.S. Department of Commerce, Bureau of Economic Analysis

(measured in 2000-chained dollars)

On an annual basis, U.S. GDP has grown every year from 2000 to 2006. The growth trend appeared to continue through the third quarter of 2007. Despite the growth in GDP on a yearly basis, the growth rate has varied on a quarterly basis, particularly during 2000 and 2001. GDP experienced several quarters of decline throughout 2000 and 2001 as the economy was in the initial stages of recovering from the recession. GDP growth began to accelerate in 2002 and 2003 as the economic recovery began to pick up momentum. During 2004 and 2005, GDP grew at a more stable rate. During 2006 and the first half of 2007, GDP growth began to trend lower as the economy began to stabilize. However, the forth quarter of 2007 posted growth of 0.6% due to weaker economic conditions.

Unemployment

The following chart presents a comparison of the U.S. unemployment rates from 2000 through February 2008:

Sources: U.S. Department of Labor, Bureau of Labor Statistics (www.bls.gov)

*Average monthly data from January to February 2008.

The U.S. unemployment rate increased after the economic slowdown in 2001 to 5.8% in 2002 and 6.0% in 2003. In 2004 it decreased to 5.5%, and continued to decrease to 4.6% in 2006 and 2007 as the economy began to recover. However, the U.S. unemployment rate started to increase in 2008 as a result of a perceived economic downturn.

Consumer Confidence

The Consumer Confidence Index (“CCI”) reflects consumers’ views of current and future business and economic trends and how they expect to be affected by those trends. The CCI is measured by comparing consumer confidence with a base year of 1985 equaling 100. Consumers typically increase their spending when consumer confidence is high or rising. The following chart presents the average annual U.S. CCI from 2000 through February 2008:

Source: NFO Research, Inc. (www.pollingreport.com)

*Average monthly data from January to February 2008.

The average annual CCI decreased from 2000 to 2003 due in part to an economic downturn. In 2003 the CCI dropped to 79.8, its lowest level in the past ten years, before trending upward in 2004. The CCI continued its upward trend between 2004 and 2006, and then dropped significantly to 81.2 in February 2008.

Personal Income

Personal income indicates the total amount of money consumers are earning. The following graph shows U.S. personal income for 2000 through 2007:

Source: U.S. Department of Commerce, Bureau of Economic Analysis

The U.S. personal income grew every quarter from the first quarter of 2000 through the third quarter of 2007, growing from $8,266.2 billion in first quarter 2000 to $11,853.5 billion in forth quarter 2007.

Disposable Income

Disposable income indicates the amount of money consumers are making after taxes have been paid, indicating the amount available for spending or saving. Thus, consumers will spend more on non critical services such as health clubs when disposable income is higher. The following chart presents quarterly U.S. disposable personal income from 2000 through 2007:

Source: U.S. Department of Commerce, Bureau of Economic Analysis

While there was some fluctuation between quarters, disposable personal income grew in every year from 2001 through 2007, reaching higher fourth quarters in each year than in the previous.

FORECASTS FOR THE U.S. ECONOMY

The Anderson Forecast¹⁹

The September 2007 Anderson Forecast projected that:

The U.S. GDP, measured in constant dollars, would increase by 1.8% in 2007, 1.8% in 2008, and 3.0% in 2009.

U.S. unemployment rate would increase to 4.6% in 2007, 5.1% in 2008, and 5.1% in 2009; and

U.S. consumption would grow by 2.7 in 2007, 2.0% in 2008, and 2.6% in 2009.

The Livingston Survey²⁰

The December 2007 Livingston Survey projected that:

The U.S. economy’s output would grow at an annual rate of 1.9% in the first half of 2008 and then increase to an annual rate of 2.8% in the second half of the year;

U.S. unemployment was expected to rise from 4.8% in December 2007 to 5.0% in June 2008 and then decrease slightly to 4.9% by the end of 2008; and

The Consumer Price Index inflation would average 2.8% in 2007, then increase to 3.0% in 2008, and fall back to 2.1% in 2009.

The Congressional Budget Office Survey²¹

In January 2008, the Congressional Budget Office projected that:

Economic growth was forecasted to grow at an inflation adjusted annual rate of 1.7% in 2008, 2.8% in 2009, 3.1% in 2010 through 2013 and then decline to an inflation adjusted annual growth rate of 2.5% from 2014 to 2018;

The Consumer Price Index was expected to grow at an annual rate of 2.9% throughout 2008 and 2.3% in 2009 and 2.2% for the years 2010 through 2018; and

The Unemployment Rate was anticipated to average about 5.1% throughout 2008, increase to 5.4% in 2009 and then decline to 4.9% during 2010 through 2013.

¹⁹ The Anderson School at UCLA. “The UCLA Anderson Forecast For the Nation And California, 3^rd Quarter 2007 – 4^th Quarter 2009.” September 2007.

²⁰ The Federal Reserve Bank of Philadelphia. “The Livingston Survey, December 2007 Release.”

²¹Congressional Budget Office. “The Budget and Economic Outlook: An Update.” August 2007.

THE EUROPEAN ECONOMY

European Growth

The European economy is recovering from sluggish growth experienced in 2001 through 2003. The following graph shows quarterly GDP growth in Europe for the first quarter of 2000 through the fourth quarter of 2007, most recent data available:

Source: European Central Bank Statistical Data Warehouse

On an annual basis, European GDP grew every year during the period under review. However, quarterly growth rates varied widely from 2000 through 2007, dropping from a high point of 4.63% in the second quarter of 2000 to a low of 0.46% in the second quarter of 2003. From the fourth quarter of 2003 through the fourth quarter of 2007, European GDP growth was positive in each quarter, reaching a high of 3.20% during the fourth quarter of 2006. In the fourth quarter of 2007, European GDP grew by 2.21%.

European Unemployment

The following graph displays the unemployment rate in Europe from 2000 through 2007, the most recent data available:

Source: European Central Bank Statistical Data Warehouse

Unemployment rate in Europe increased each year from 7.78% in 2001 to 8.80% in 2004. Since, the European unemployment rate declined to 7.41% in 2007.

FORECASTS FOR THE EUROPEAN ECONOMY

The Euro-area GDP Growth Projection²²

In August 2007, the Directorate General for Economic and Financial Affairs of the European Commission projected that:

GDP in the Euro Area would grow 0.3% to 0.8% in the third quarter of 2007 and 0.2% to 0.8% in the fourth quarter of 2007; and 0.2% to 0.9% in the first quarter of 2008.

European Economic Forecasts²³

In July 2007, the European Commission projected the following for the European Economy:

GDP in the 27 country European Union area would grow by 2.9% in 2007, 2.4% in 2008 and 2009;

Consumption would increase 2.3% in 2007, 2.4% in 2008, and 2.2 in 2009; and

The Unemployment Rate in the European Union, which was 7.9% in 2006, would fall to 7.1% in 2007, 6.8% in 2008, and 6.6% in 2009.

²²European Commission Directorate General for Economic and Financial Affairs. “The Euro-area GDP growth projection.” August 14, 2007.

²³ European Economy 2007. “Economic forecast Spring 2007.” May 7, 2007.

SUMMARY

U.S. Economy

After strong economic growth in the late 1990s and early 2000, the U.S. economy slowed in late 2000 and entered into a recession in March 2001. In 2002 and the first half of 2003, the U.S. economy appeared to be in a state of recovery but was growing slowly. In the second half of 2003 through the end of 2005, the economy grew strongly, indicating an expansion of the U.S. economy. However, in the second half of 2007, the U.S. economy began to show signs of a slowdown due to the global credit crunch and mounting sub-prime mortgage concerns.

U.S. unemployment rate increased after the economic slowdown in 2001 and began to decrease in 2004 and 2005. However, the unemployment rate began to increase in the second half of 2007 due to a perceived economic downturn.

U.S. average annual CCI was at its lowest point in 2003 at 79.8, after which it continued its upward trend between 2004 and 2006, and then dropped significantly to 81.2 in February 2008. The U.S. personal income and disposable personal income grew in every quarter from 2000 through the third quarter of 2007.

U.S. GDP growth is expected at 1.8% in 2007 and between 1.7% and 2.3% in 2008. U.S. unemployment rate is forecasted to range between 4.9% and 5.1% in 2008, and between 5.0% and 5.4% in 2009. The Consumer Price Index inflation is expected to average 2.8% in 2007, then increase to 3.0% in 2008, and fall back to 2.1% in 2009.

European Economy

The European economy is recovering from sluggish growth experienced in 2001 through 2003. On an annual basis, European GDP grew in every year during the period under review. In the fourth quarter of 2007, European GDP grew by 2.21%.

European GDP growth forecasts predict GDP growth in the 27 country European Union area to slow to 2.4% in 2008 and 2009.

VALUATION ANALYSIS

INTRODUCTION

We are performing a valuation of the fair market value and fair value of a 100% equity interest in the Intellectual Property. In order to value the Intellectual Property, we must use the standards of fair market value, fair value, and consider all relevant factors.

DEFINITION OF FAIR MARKET VALUE

Fair market value is defined by the American Society of Appraisers as:

The amount at which property would change hands between a willing seller and a willing buyer when neither is acting under compulsion and when both have reasonable knowledge of the relevant facts.

We also considered Statement of Financial Accounting Standards (“SFAS”) No. 157, in which fair value is defined as follows:

The exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability, that is, the principal or most advantageous market for the asset or liability. The transaction to sell the asset or transfer the liability is a hypothetical transaction at the measurement date, considered from the perspective of a market participant that holds the asset or owes the liability. Therefore, the definition focuses on the price that would be received to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price).

We also considered the definition of fair market value as defined under Section 20.2031-1(b) of the Estate Tax Regulations and Section 23.2312-1 of the Gift Tax Regulations, which define fair market value as:

The price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of the relevant facts.

In addition, we also considered the factors listed under Appendix H: The Process of Business Valuation and Diligence Procedures, page 142.

DATE OF VALUE

The date of value is March 31, 2008.

RISK/REWARD PROFILE

The following outlines Platinum’s risk/reward profile as of the date of value:

Company Factors

Platinum was established in 1996 and has operated for approximately 11 years.

Platinum’s executive management team has extensive experience.

Platinum is focused on adapting its character library to film, television, publishing (both print and digital), video games, merchandising, licensing and other media. Its library consists of 5,622 characters in various genres, including science fiction, fantasy, horror, mystery, romance, comedy, crime, action, and family.

In addition to in-house development and further acquisitions, Platinum is developing content with professionals outside the realm of comic books. The Company has teamed up with screenwriters, producers, directors, movie stars, and novelists to develop entertainment content and potential new franchise properties. Every project is designed for eventual adaptation to all media platforms, including film and television, digital publishing, print publishing, video games and merchandising licensing.

In 2007 and through the first quarter of 2008, Platinum:

Sold Unique to Disney Studios, with the anticipation that it will go into production in 2009;

Entered into a 2-year option agreement with DreamWorks, in association with Universal Pictures , Paramount Pictures, and Imagine Entertainment, to acquire the film production rights to Cowboys & Aliens, with the goal to produce a feature film; and

Completed a co-production deal on Dead of Night with Hyde Park Entertainment, with anticipated production start date Summer or Fall 2008; and

Completed a co-production deal on Witchblade with Arclight Films and Top Cow Entertainment with anticipated production start date in Fall 2008.

Currently Platinum is in negotiation with several major film studios to co-produce the following titles:

Atlantis Rising

Hunter

Mal Chance

On January 10, 2008, Platinum filed Form SB-2 and provided prospectus to offer the resale by the selling stockholders of up to 66,255,825 shares or 32.92% of the Company’s common stock outstanding. As of February 1, 2008, Platinum became a publicly traded company on the OTCBB. As of March 31, 2008, the number of shares of Platinum’s common stock outstanding was 216,921,227.

Platinum’s Total Revenues increased at an ACR of 42.3% from 2002 through 2007. Platinum did not incur any Cost of Revenues from 2002 though 2006. In 2007, Cost of Revenues represented 14.2% of Total Revenues. Total Operating Expenses increased during the same period under review as the Company actively recruited executives and other talents to help exploit the Company’s library of comic book characters. Platinum had Operating Losses and Net Losses from 2002 through 2007, due to the establishment and expansion of the business.

Total Assets grew at an ACR of 31.8% from 2002 through 2007. Total Liabilities varied between $5,672,224 and $9,664,312 during the period under review. Total Shareholders’ Equity was negative during the period under review due to Net Losses from 2002 through 2007.

Since Platinum had minimum Revenues and significant Net Losses during the period under review, and since the Company’s business plan is to generate significant film entertainment and online revenues in the next several years through active exploitation of its comic book character library, we have given limited consideration to Platinum’s historical financial performance as a basis for our valuation. However, our valuation takes into account the risks of the Company not obtaining adequate financing and its ability to continue as a going concern.

Industry Factors

²⁴ Ibid.

U.S. wholesale eBooks sales increased at an ACR of 40.3% from 2002 through 2007. U.S. internet advertising revenues increased at an ACR of 14.7% from 2000 through 2008.

North America video game revenues increased at an ACR of 8.7% from 2001 to 2007.

Competitive Factors

Economic Factors

U.S. Economy

U.S. GDP growth is expected at 1.8% in 2007 and between 1.8% and 2.3% in 2008. U.S. unemployment rate is forecasted to range between 4.9% and 5.1% in 2008, and between 5.0% and 5.1% in 2009. The Consumer Price Index inflation is expected to average 2.8% in 2007, then increase to 3.0% in 2008, and fall back to 2.1% in 2009.

European Economy

European GDP growth forecasts predict GDP growth in the 27 country European Union area to slow to 2.4% in 2008 and 2009.

METHODOLOGICAL APPROACHES

We determined the fair market value of the Intellectual Property by determining the value of each of the Company’s divisions. For each of the divisions, the following presents an overview of the major production / marketing assumptions as well as references to the supporting schedules, which include independently derived market and industry support for the assumptions used in our valuations.

Unless otherwise indicated, for each of the divisions, we used the following valuation methods to determine the indicated fair market value of the Intellectual Property:

Discounted Cash Flow (“DCF”) Method (income approach)

Market Multiple Method (market approach)

1. Film Entertainment: Licensed Film Division

The Licensed Film Division model assumes that Platinum Studios, Inc. sells theatrical film rights of high budget films (with average budgets of $50 - $65 million) to one of the major Hollywood Studios for a license fee, and retains partial merchandising rights.

The number of projects per year ranges between 1 and 2.

Schedules 3 to 6 present our overall valuation analysis.

Exhibits 1 to 5 provide support for Schedule 3 (Projections).

Appendices A-2 to A-4 provide support for Exhibit 1.

Exhibits 6A to 6C, and 7 provide support for Schedule 4 (DCF Method).

Appendix C provides support for Schedule 5 (Market Method).

2. Film Entertainment: Joint Venture Division

The Joint Venture Division model assumes that Platinum Studios, Inc. forms joint ventures with other studios to produce and distribute low budget films (with average budgets of $15 - $25 million), and Platinum assumes 30% of all costs and profits.

The number of projects per year ranges between 2 and 3.

Schedules 7 to 10 present our overall valuation analysis.

Exhibits 8 to 12 provide support for Schedule 7 (Projections).

Appendices A-5 to A-8, and Appendix B provide support for Exhibit 8.

Exhibits 6A to 6C, and 7 provide support for Schedule 8 (DCF Method).

Appendix C provides support for Schedule 9 (Market Method).

3. Film Entertainment: Film Fund Division

The Film Fund Division model assumes that Platinum Studios, Inc. finances 100% of low budget Indie films (with average budgets of $10 million) via the Film Fund.

The number of projects per year ranges between 0 and 5.

Schedules 11 to 14 present our overall valuation analysis.

Exhibits 13 and 14 provide support for Schedule 11 (Projections).

Appendix A-9 provides support for Exhibit 13.

Exhibits 6A to 6C, and 7 provide support for Schedule 12 (DCF Method).

Appendix C provides support for Schedule 13 (Market Method).

4. Film Entertainment: Direct to DVD Division

The Direct to DVD Division model assumes that Platinum Studios, Inc. finances 100% of Direct to DVD films (with average budgets of $1.5 million) via private financing.

The number of projects per year ranges between 0 and 7.

Schedules 15 to 18 present our overall valuation analysis.

Exhibits 15 to 17 provide support for Schedule 15 (Projections).

Appendix D provides support for Exhibit 15.

Exhibits 6A to 6C, and 7 provide support for Schedule 16 (DCF Method).

Appendix C provides support for Schedule 17 (Market Method).

5. Digital Publishing

The Digital Publishing model assumes that revenues are generated through: Merchandise Sales, Advertising Sales, Gaming Revenues, Subscription Revenues and Syndication Revenues.

Schedules 19 to 22 present our overall valuation analysis.

Exhibits 18 to 20 provide support for Schedule 19 (Projections).

Exhibits 21A to 21C provide support for Schedule 20 (DCF Method).

Appendix E provides support for Schedule 21 (Market Method).

6. Video Network

The Video Network model assumes that revenues are generated through Advertising Sales.

Schedules 23 to 26 present our overall valuation analysis.

Exhibits 22 to 23 provide support for Schedule 23 (Projections).

Exhibits 21A to 21C provide support for Schedule 24 (DCF Method).

Appendix F provides support for Schedule 25 (Market Method).

7. Print Publishing

We utilized the revenue multiplier method, a market-based method, and applied a revenue multiple in the high range to account for expected growth in future revenues and profits.

Schedule 27 presents our overall valuation analysis.

8. Licensed Video Games

The Licensed Video Games model assumed that revenues are generated through license agreements with video game production and distribution studios.

Schedules 28 and 29 present our overall valuation analysis.

Exhibit 24 provides support for Schedule 28 (Projections).

Appendices G-1 to G-2 provide support for Exhibit 24.

Exhibits 6A to 6C, and 7 provide support for Schedule 29 (DCF Method).

9. Licensing and Merchandising

The Licensing and Merchandising model assumes that revenues are generated through license agreements with distributors based on IP in addition to Film Entertainment, Digital Publishing, and Video Games.

Schedule 30 presents our overall valuation analysis.

10. The Comic Book Challenge

We utilized the Cost Approach to determine the indicated fair market value of the Comic Book Challenge.

The following schedules and accompanying endnotes, exhibits and appendices present our valuation analysis.

Schedule 3

Platinum Studios, Inc.

Film Entertainment: Projected Cash Flow for Licensed Film Division ¹

Date of Value: March 31, 2008

	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(1)		(2)		(3)		(4)		(5)		(6)		(7)		(8)		(9)		(10)		(11)
Assumptions:

Action
High Budget		0		2		1		1		1		0		0		1		0		0		1

Comedy
High Budget		0		0		0		1		0		1		1		1		1		1		0

Thriller
High Budget		0		0		1		0		1		1		1		0		1		1		1
Total Projects Began per Year		0		2		2		2		2		2		2		2		2		2		2

Projected Cash Flows:

Revenue from Film License	$	0	$	2,500,000	$	2,500,000	$	2,500,000	$	2,500,000	$	2,500,000	$	2,500,000	$	2,500,000	$	2,500,000	$	2,500,000	$	2,500,000

Gross Receipts
Domestic Theatrical	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
International Theatrical		0		0		0		0		0		0		0		0		0		0		0
Domestic Home Video		0		0		0		0		0		0		0		0		0		0		0
International Home Video		0		0		0		0		0		0		0		0		0		0		0
Domestic Television
PPV		0		0		0		0		0		0		0		0		0		0		0
Pay TV		0		0		0		0		0		0		0		0		0		0		0
Network TV		0		0		0		0		0		0		0		0		0		0		0
Syndicated TV		0		0		0		0		0		0		0		0		0		0		0
International Television
Pay TV		0		0		0		0		0		0		0		0		0		0		0
Syndicated TV		0		0		0		0		0		0		0		0		0		0		0
Domestic Merchandising		0		0		1,217,592		968,056		949,048		1,059,749		644,486		623,030		958,203		617,643		599,348
International Merchandising		0		0		1,301,564		996,886		1,030,393		1,093,682		666,427		642,258		1,038,256		639,584		619,028
Total Gross Receipts	$	0	$	0	$	2,519,156	$	1,964,942	$	1,979,441	$	2,153,431	$	1,310,913	$	1,265,288	$	1,996,459	$	1,257,227	$	1,218,376

Distribution Costs
Domestic Theatrical	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
International Theatrical		0		0		0		0		0		0		0		0		0		0		0
Domestic Home Video		0		0		0		0		0		0		0		0		0		0		0
International Home Video		0		0		0		0		0		0		0		0		0		0		0
Domestic Television Cost		0		0		0		0		0		0		0		0		0		0		0
International Television Cost		0		0		0		0		0		0		0		0		0		0		0
Total Distribution Costs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Publicity Expenses
Domestic Theatrical
Advertising	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Prints		0		0		0		0		0		0		0		0		0		0		0
International Theatrical
Advertising		0		0		0		0		0		0		0		0		0		0		0
Prints		0		0		0		0		0		0		0		0		0		0		0
Total Publicity Expenses	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Negative Costs	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Net Profit	$	0	$	2,500,000	$	5,019,156	$	4,464,942	$	4,479,441	$	4,653,431	$	3,810,913	$	3,765,288	$	4,496,459	$	3,757,227	$	3,718,376

Less:

Participations (10% of Net Profit each)
Talent	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
Writers		0		0		0		0		0		0		0		0		0		0		0
Total Participations	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0

Net Profit After Participations	$	0	$	2,500,000	$	5,019,156	$	4,464,942	$	4,479,441	$	4,653,431	$	3,810,913	$	3,765,288	$	4,496,459	$	3,757,227	$	3,718,376

Less:

Content Partners (15% of Net Profit After Participations)	$	0	$	375,000	$	752,873	$	669,741	$	671,916	$	698,015	$	571,637	$	564,793	$	674,469	$	563,584	$	557,756

Contribution Profit from Licensed Films	$	0	$	2,125,000	$	4,266,283	$	3,795,201	$	3,807,525	$	3,955,416	$	3,239,276	$	3,200,495	$	3,821,990	$	3,193,643	$	3,160,620

Source: Exhibits 1 through 5.

Note 1: Assumption: Platinum Studios, Inc. sells theatrical film rights of high budget films to one of the Big Hollywood Studios for a license fee; retains partial merchandising rights.

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 3

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

The Licensed Film Division model assumes that Platinum Studios, Inc. sells theatrical film rights of high budget films (with average budgets of $50 - $65 million) to one of the major Hollywood studios for a license fee, and retains merchandising rights.

To estimate the future cash flows generated by the Licensed Film Division, we estimated each film’s revenues and costs over the first ten years, “ultimates”, based on genre and budget size as presented in Exhibit 1, page 97.

We then estimated the timing of the cash flows in each year, as presented in Exhibit 2, page 98. As such, we developed the cash flows of each individual film in each year based on genre and budget size, as presented in Exhibits 3 to 5, pages 99 to 101.

In addition, we also estimated the number of licensed film deals that Platinum would enter into each year. Among the 84 comic book adaptation movies since 1978 to present, there are 57 original movies and 27 sequels to 13 of the original movies. Based on our calculations:

22.8% of the movies produce at least 1 sequel;

10.5% of the movies produce at least 2 sequels;

5.3% of the movies produce at least 3 sequels; and

5.3% of the movies produce at least 4 sequels.

With the potential to create film franchises and spin-offs, this enables the Company to produce more film projects derived from the same characters. Based on Platinum’s current licensed film deals, interviews with management, and the potential of sequels and spin-offs, we assumed the number of projects per year would range between 1 and 2.

A film’s ultimate revenues consist of theatrical revenues, home video revenues, TV revenues, and merchandising revenues. Costs of a film primarily consist of production costs, distribution costs, and publicity expenses.

Based on the assumptions of the Licensed Film Division model, we determined the revenues generated by the Licensed Film Division consisted of licenses fees and merchandising sales.

Schedule 4

Platinum Studios, Inc.

Method 1: Discounted Cash Flow Method for Licensed Film Division¹

Date of Value: March 31, 2008

	Apr 1 - Dec 31, 2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			2018			Terminal Year - 2019
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)			(12)

Contribution Profit from Licensed Films (Schedule 3)	$	0		$	2,125,000		$	4,266,283		$	3,795,201		$	3,807,525		$	3,955,416		$	3,239,276		$	3,200,495		$	3,821,990		$	3,193,643		$	3,160,620

Less: Overhead Allocation		(187,500	)		(750,000	)		(773,250	)		(797,221	)		(821,935	)		(847,415	)		(873,684	)		(900,769	)		(928,692	)		(957,482	)		(987,164	)

EBITDA from Licensed Films		($187,500	)	$	1,375,000		$	3,493,033		$	2,997,980		$	2,985,590		$	3,108,002		$	2,365,592		$	2,299,726		$	2,893,298		$	2,236,161		$	2,173,456

Less: Depreciation		0			(100,000	)		(100,000	)		(100,000	)		(100,000	)		(100,000	)		(100,000	)		(100,000	)		(100,000	)		(100,000	)		(100,000	)

EBIT from Licensed Films		($187,500	)	$	1,275,000		$	3,393,033		$	2,897,980		$	2,885,590		$	3,008,002		$	2,265,592		$	2,199,726		$	2,793,298		$	2,136,161		$	2,073,456

Less: Taxes (40% tax rate)		75,000			(510,000	)		(1,357,213	)		(1,159,192	)		(1,154,236	)		(1,203,201	)		(906,237	)		(879,891	)		(1,117,319	)		(854,464	)		(829,382	)

Net Income from Licensed Films		($112,500	)	$	765,000		$	2,035,820		$	1,738,788		$	1,731,354		$	1,804,801		$	1,359,355		$	1,319,836		$	1,675,979		$	1,281,697		$	1,244,073

Add: Depreciation		0			100,000			100,000			100,000			100,000			100,000			100,000			100,000			100,000			100,000			100,000
Less: Capital Expenditures		0			(200,000	)		(206,000	)		(212,180	)		(218,545	)		(225,102	)		(231,855	)		(238,810	)		(245,975	)		(253,354	)		(260,955	)

Net Cash Flow to MVIC from Licensed Films		($112,500	)	$	665,000		$	1,929,820		$	1,626,608		$	1,612,809		$	1,679,699		$	1,227,500		$	1,181,025		$	1,530,004		$	1,128,343		$	1,083,119

Terminal Value Calculation
End Year Economic Income (E₀)																																		$	1,083,119
Long Term Growth Rate (g)																																			3.1	%
Terminal Year Economic Income (E₁ = E₀ x (1+g))																																		$	1,116,695
Capitalization Rate (discount rate - g)																																			13.9	%
Terminal Value (V = E₁ / capitalization rate)⁴																																		$	8,028,212

Discount Rate (Exhibits 6A - 6C)²		1.6	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%

Present Value Factor³		0.99			0.82			0.70			0.60			0.51			0.44			0.37			0.32			0.27			0.23			0.20			0.20

Present Value of Net Cash Flow to MVIC		($111,849	)	$	546,443		$	1,355,246		$	976,253		$	827,258		$	736,322		$	459,871		$	378,140		$	418,662		$	263,870		$	216,473		$	1,604,527

Fair Market Value of Licensed Film Division	$	7,671,217

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 4

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

The Discounted Cash Flow (“DCF”) valuation method typically uses “net cash flow” as the economic income that is discounted to present value. Valuing Small Businesses & Professional Practices states:

There are two reasons why net cash flow is the preferred measure of economic income in the application of the income approach: (1) It is conceptually preferable, and (2) It is easier to develop an empirically defensible discount rate for net cash flow.

Dr. Shannon Pratt describes net free cash flow as:²⁵

… [T]he return on the investment that the investor has completely available to take out of the business or to do with as he wishes with absolutely no impairment of the ongoing ability of the business to continue to produce the expected level of cash flows in the future.

Valuing Small Businesses & Professional Practices defines net free cash flow to overall invested capital:

Earnings Before Interests and Taxes

— Taxes on EBIT

+ Noncash charges (e.g., depreciation, amortization, deferred income taxes)

— Capital expenditures (the net changes in fixed and other noncurrent assets)

— Changes in working capital

= Net cash flow to overall invested capital

To determine the Net cash flow to overall invested capital, we deducted corporate expenses for overhead, depreciation, and capital expenditures allocated to Licensed Films Division.

Note 2

See Exhibits 6A to 7, Development of WACC.

²⁵ Pratt, Shannon P., Robert F. Reilly, and Robert P. Schweihs. Valuing Small Businesses and Professional Practices. New York: McGraw-Hill, 1998. p. 220.

Under the Weighted Average Cost of Capital (“WACC”), returns on equity (Exhibit 6A) and debt (Exhibit 6B) are separately calculated. The returns on equity and debt are then weighted to calculate the WACC (Exhibit 6C).

Business Valuation Body of Knowledge describes the method as follows²⁶:

Weighted average cost of capital is the blended costs of the company’s capital structure components [debt and equity], each weighted by the market value of that component.

To determine the Fair Value of Licensed Films Division, an appropriate discount rate must be selected. The discount rate reflects the expected longevity and certainty of generating earnings attributable to existing customers and takes numerous valuation characteristics into consideration.

Exhibit 6A presents the “build-up” method of developing an equity discount rate. Valuing a Business: The Analysis and Appraisal of Closely-Held Companies describes the components of a “build-up” as follows²⁷:

A “risk-free rate” (the amount that an investor feels certain of realizing over the holding period). This includes:

A “rental rate” for foregoing the use of funds over the holding period.

The expected rate of inflation over the holding period.

A premium for risk. This includes:

Systematic risk (that risk that relates to movements in returns on the investment market in general).

Unsystematic risk (that risk that is specific to the subject investment).

The discount rate is directly related to an investment’s potential risk. Investors apply a risk premium to riskier investments, expecting a higher rate of return for these investments. Investments have different levels of risk; these risk levels are defined by the following characteristics:²⁸

Risk-Free		Building a duplicate plant to make more of a currently made and sold product in response to presently high demand.
Very Low Risk		Incorporating a new but well-understood technology into making a product presently made and sold in response to existing demand.

²⁶ Pratt, Shannon, Business Valuation Body of Knowledge. John Wiley & Sons, Inc., 1998, p. 94.

²⁷ Pratt, Shannon P., Robert F. Reilly & Robert P. Schweihs, Valuing a Business: The Analysis and Appraisal of Closely-Held Companies. Irwin Professional Publishing, 2000, p. 160.

²⁸ Razgaitis, Richard. Early-Stage Technologies: Valuation and Pricing. New York: John Wiley & Sons, Inc., 1999, Page 132.

Low Risk	Making a product with new features using well-understood technology into a presently served and understood customer segment with evidence of demand for such features.

Moderate Risk	Making a new product using well-understood technology to a customer segment presently served by other products made by the corporation and with evidence of demand for such a new product.

High Risk	Making a new product using a not well-understood technology and marketing it to an existing segment or a well-understood technology to a new market segment.

Very High Risk	Making a new product with new technology to a new segment.

Extremely High Risk	Creating a startup company to go into the business of making a product not presently sold or even known to exist using unproven technologies.

Rates of return associated with the different levels of risk are presented in the following table:²⁹

Characterization of Risk	Approximate Rates of Return (Risk-Adjusted Hurdle Rate)
Risk-free		10% - 18	%
Very low risk		15% - 20	%
Low risk		20% - 30	%
Moderate risk		25% - 35	%
High risk		30% - 40	%
Very high risk		40% - 45	%
Extremely high risk		50% - 70% or Higher

Investors require a higher rate of return on a start-up company than one on the verge of an initial public offering (“IPO”). A higher discount rate is applicable to companies in its earlier stages of development. The following table illustrates the required rate of return on different stages of development:

²⁹ Razgaitis, Richard. Early-Stage Technologies: Valuation and Pricing. New York: John Wiley & Sons, Inc., 1999, Page 132.

Stage of Development	Plummer³⁰			Scherlis and Sahiman³¹
Start-up		50% - 70	%		50% - 70	%
First Stage or “Early Development”		40% - 60	%		40% - 60	%
Second Stage or “Expansion”		35% - 50	%		30% - 50	%
Bridge/IPO		25% - 35	%		20% - 35	%

The After-Tax Equity Discount Rate we determined falls within the moderate to high risk for the above categories, which takes into account the risks identified in our Risk/Reward Profile, page 37.

The appropriate weights to apply to the After-Tax Equity Discount Rate and the After-Tax Rate of Return on Debt were based on the average Debt to Equity ratio of a perpetual slate financing as defined in the Platinum Studios Film Fund, LLC Agreement (see Exhibit 7).

Note 3

SP&H determined that the Mid Year Convention was an appropriate method of calculating the Present Value Factor for years 2008 through 2018.

Using the Mid Year Convention, the Present Value Factors were calculated as follows:

Present Value Factor = 1

(1+k) ^t-0.5

Where:

k = Discount Rate (Equity Discount Rate)

t = Year

Note 4

The terminal value was calculated based on the Gordon Growth Model.³²

Using net cash flow as the economic income measure, the formula for the Gordon Growth Model is as follows:

PV = NCF₀ (1+g)

k - g

where:

PV = Present Value

³⁰ Plummer, James L., QED Report on Venture Capital Financial Analysis (Palo Alto: QED Research, Inc. 1987)

³¹ Scherlis, Daniel R. and William A. Sahlman, A Method for Valuing High-Risk, Long Term, Investments: The Venture Capital Method (Boston, Harvard Business School Publishing, 1987).

³² Pratt, Shannon P., Robert F. Reilly, and Robert P. Schweihs. Valuing Small Businesses and Professional Practices. New York: McGraw-Hill, 1998. Pages 260-261.

NCF₀	=	Net cash flow for period 0, the period immediately preceding the effective valuation date (It is assumed that this has been normalized by whatever adjustments are appropriate, such as eliminating nonrecurring items and so on.)
g	=	Projected long-term growth rate (annually compounded, sustainable in perpetuity)
k	=	Present value discount rate (cost of capital applicable to definition of the economic income variable being capitalized)

The Gordon Growth Model version of the capitalized economic income method is often used to derive the terminal value in the discounted economic income method.

Schedule 5

Platinum Studios, Inc.

Method 2: Market Multiplier Method for Licensed Film Division ¹

Date of Value: March 31, 2008

Total Number of Characters in Library			5,622

Percent of Characters Adaptable to High Budget Licensed Films			3	%

Number of Characters Adaptable to High Budget Licensed Films			169

Market Multiple (Appendix C)	x	$	70,000

Fair Market Value of Licensed Film Division		$	11,806,000

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 5

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

In the Market Multiplier Method, the fair market value of the Intellectual Property in the Licensed Film Division was determined by multiplying the number of characters by an appropriate media format adaptation percentage, which we derived based on interviews with management and industry analysis.

To determine the appropriate market multiple, we searched for library transactions in film entertainment industry. We obtained library transaction data from Vogel 2007 and press releases, and made adjustments to the multiples to match the size and nature of the Licensed Film Division. (See Appendix C, page 136) To determine the fair market value of the Intellectual Property in the Licensed Film Division, we utilized the price per feature multiple. Based on our analysis of the Company as well as the industry, competition, and economic conditions for Platinum, we selected the average of low quartile and mean price per feature multiple of $70,000.

Schedule 6

Platinum Studios, Inc.

Fair Market Value of Intellectual Property in the Licensed Film Division

Date of Value: March 31, 2008

	Fair Market Value		Weight			Weighted Fair Market Value

Method 1: Discounted Cash Flow Method (Schedule 4)	$	7,671,217		75	%	$	5,753,413

Method 2: Market Multiplier Method (Schedule 5)	$	11,806,000		25	%	$	2,951,500

Fair Market Value of Intellectual Property in Licensed Film Division (Rounded)						$	8,705,000

SANLI PASTORE & HILL, INC.

Schedule 7

Platinum Studios, Inc.

Film Entertainment: Projected Cash Flow for Joint Venture Film Division ¹

Scenario: Base

Date of Value: March 31, 2008

	2008			2009		2010				2011				2012				2013				2014				2015				2016				2017				2018
	(1)			(2)		(3)				(4)				(5)				(6)				(7)				(8)				(9)				(10)				(11)
Assumptions:

Action
Low Budget		1			1		1				1				2				1				1				1				1				1				1

Comedy
Low Budget		0			0		0				0				0				0				1				0				0				0				0

Thriller
Low Budget		1			1		1				1				1				1				1				1				1				1				1

Horror		0			0		0				1				0				1				0				1				1				1				1
Total Projects Began per Year		2			2		2				3				3				3				3				3				3				3				3

Projected Cash Flows:

Gross Receipts
Domestic Theatrical	$	0		$	32,000,000	$	32,000,000	22.9	%	$	32,000,000	21.0	%	$	38,075,000	20.6	%	$	48,500,000	20.7	%	$	38,075,000	17.7	%	$	40,775,000	18.7	%	$	38,075,000	17.5	%	$	38,075,000	17.5	%	$	38,075,000	17.4	%
International Theatrical		0			20,451,000		24,060,000	17.2	%		24,060,000	15.8	%		29,160,000	15.8	%		38,815,000	16.6	%		31,605,000	14.7	%		27,408,000	12.6	%		29,592,000	13.6	%		30,060,000	13.8	%		30,060,000	13.7	%
Domestic Home Video		0			37,440,000		40,934,400	29.3	%		43,929,600	28.8	%		53,034,150	28.7	%		67,392,390	28.8	%		57,401,370	26.7	%		61,276,020	28.1	%		58,870,110	27.0	%		59,259,330	27.3	%		59,443,800	27.1	%
International Home Video		0			14,976,000		25,459,200	18.2	%		26,956,800	17.7	%		30,698,460	16.6	%		38,166,570	16.3	%		37,286,730	17.3	%		36,093,096	16.6	%		35,932,104	16.5	%		35,432,748	16.3	%		35,641,008	16.3	%
Domestic Television
PPV		0			120,000		4,000,000	2.9	%		4,000,000	2.6	%		4,022,781	2.2	%		4,798,469	2.1	%		6,023,406	2.8	%		4,769,500	2.2	%		5,086,750	2.3	%		4,759,375	2.2	%		4,759,375	2.2	%
Pay TV		0			432,000		11,232,000	8.0	%		14,400,000	9.4	%		14,482,013	7.8	%		16,673,063	7.1	%		20,652,188	9.6	%		18,202,275	8.4	%		18,045,000	8.3	%		17,401,050	8.0	%		17,133,750	7.8	%
Network TV		0			0		0	0.0	%		864,000	0.6	%		3,744,000	2.0	%		4,608,000	2.0	%		5,636,025	2.6	%		6,752,250	3.1	%		7,573,050	3.5	%		7,153,200	3.3	%		7,377,975	3.4	%
Syndicated TV		0			0		0	0.0	%		0	0.0	%		224,000	0.1	%		448,000	0.2	%		672,000	0.3	%		826,525	0.4	%		1,054,025	0.5	%		1,208,550	0.6	%		1,360,713	0.6	%
International Television
Pay TV		0			0		1,190,970	0.9	%		5,557,860	3.6	%		7,939,800	4.3	%		8,236,800	3.5	%		9,835,650	4.6	%		11,789,250	5.4	%		10,785,060	5.0	%		9,353,520	4.3	%		9,610,920	4.4	%
Syndicated TV		0			0		0	0.0	%		0	0.0	%		2,406,000	1.3	%		4,812,000	2.1	%		7,218,000	3.4	%		9,021,000	4.1	%		11,854,000	5.4	%		13,657,000	6.3	%		14,848,000	6.8	%
Domestic Merchandising		0			313,280		342,519	0.2	%		367,582	0.2	%		403,910	0.2	%		611,812	0.3	%		446,260	0.2	%		485,964	0.2	%		452,163	0.2	%		451,700	0.2	%		450,481	0.2	%
International Merchandising		0			325,875		356,291	0.3	%		382,361	0.3	%		423,963	0.2	%		678,256	0.3	%		472,193	0.2	%		473,675	0.2	%		473,494	0.2	%		473,138	0.2	%		472,473	0.2	%
Total Gross Receipts	$	0		$	106,058,155	$	139,575,380	100.0	%	$	152,518,202	100.0	%	$	184,614,077	100.0	%	$	233,740,359	100.0	%	$	215,323,822	100.0	%	$	217,872,554	100.0	%	$	217,792,755	100.0	%	$	217,284,611	100.0	%	$	219,233,495	100.0	%

Distribution Costs
Domestic Theatrical	$	0		$	6,400,000	$	6,400,000	4.6	%	$	6,400,000	4.2	%	$	7,615,000	4.1	%	$	9,700,000	4.1	%	$	7,615,000	3.5	%	$	8,155,000	3.7	%	$	7,615,000	3.5	%	$	7,615,000	3.5	%	$	7,615,000	3.5	%
International Theatrical		0			4,090,200		4,812,000	3.4	%		4,812,000	3.2	%		5,832,000	3.2	%		7,763,000	3.3	%		6,321,000	2.9	%		5,481,600	2.5	%		5,918,400	2.7	%		6,012,000	2.8	%		6,012,000	2.7	%
Domestic Home Video		0			6,988,800		7,488,000	5.4	%		7,887,360	5.2	%		9,513,660	5.2	%		12,184,770	5.2	%		10,445,916	4.9	%		11,359,452	5.2	%		11,135,748	5.1	%		11,483,706	5.3	%		11,831,664	5.4	%
International Home Video		0			2,695,680		4,672,512	3.3	%		4,972,032	3.3	%		5,723,406	3.1	%		7,156,609	3.1	%		7,099,092	3.3	%		6,945,401	3.2	%		7,019,158	3.2	%		7,000,672	3.2	%		7,118,654	3.2	%
Domestic Television Cost		0			252,800		2,780,800	2.0	%		3,792,000	2.5	%		4,345,593	2.4	%		5,160,675	2.2	%		6,194,983	2.9	%		5,919,273	2.7	%		6,095,640	2.8	%		6,005,620	2.8	%		6,033,862	2.8	%
International Television Cost		0			199,698		2,196,678	1.6	%		2,995,470	2.0	%		3,444,666	1.9	%		4,227,854	1.8	%		5,276,343	2.5	%		4,916,986	2.3	%		4,642,622	2.1	%		4,812,307	2.2	%		4,912,604	2.2	%
Total Distribution Costs	$	0		$	20,627,178	$	28,349,990	20.3	%	$	30,858,862	20.2	%	$	36,474,325	19.8	%	$	46,192,908	19.8	%	$	42,952,334	19.9	%	$	42,777,712	19.6	%	$	42,426,567	19.5	%	$	42,929,304	19.8	%	$	43,523,784	19.9	%

Publicity Expenses
Domestic Theatrical
Advertising	$	2,100,228		$	21,002,280	$	21,002,280	15.0	%	$	21,702,356	14.2	%	$	28,469,757	15.4	%	$	32,203,495	13.8	%	$	28,003,040	13.0	%	$	28,003,040	12.9	%	$	28,003,040	12.9	%	$	28,003,040	12.9	%	$	28,003,040	12.8	%
Prints		0			2,619,301		2,619,301	1.9	%		2,619,301	1.7	%		3,492,401	1.9	%		4,074,468	1.7	%		3,492,401	1.6	%		3,492,401	1.6	%		3,492,401	1.6	%		3,492,401	1.6	%		3,492,401	1.6	%
International Theatrical
Advertising		1,050,114			10,501,140		10,501,140	7.5	%		10,851,178	7.1	%		14,234,878	7.7	%		16,101,748	6.9	%		14,001,520	6.5	%		14,001,520	6.4	%		14,001,520	6.4	%		14,001,520	6.4	%		14,001,520	6.4	%
Prints		0			1,113,203		1,309,650	0.9	%		1,309,650	0.9	%		1,680,718	0.9	%		1,993,579	0.9	%		1,789,856	0.8	%		1,746,201	0.8	%		1,746,201	0.8	%		1,746,201	0.8	%		1,746,201	0.8	%
Total Publicity Expenses	$	3,150,342		$	35,235,923	$	35,432,371	25.4	%	$	36,482,485	23.9	%	$	47,877,755	25.9	%	$	54,373,290	23.3	%	$	47,286,816	22.0	%	$	47,243,161	21.7	%	$	47,243,161	21.7	%	$	47,243,161	21.7	%	$	47,243,161	21.5	%

Negative Costs, Net of Story Rights Acquisitions	$	45,000,000		$	45,000,000	$	45,000,000	32.2	%	$	60,000,000	39.3	%	$	70,000,000	37.9	%	$	60,000,000	25.7	%	$	60,000,000	27.9	%	$	60,000,000	27.5	%	$	60,000,000	27.5	%	$	60,000,000	27.6	%	$	60,000,000	27.4	%

Net Profit	$	(48,150,342	)	$	5,195,054	$	30,793,019	22.1	%	$	25,176,855	16.5	%	$	30,261,998	16.4	%	$	73,174,160	31.3	%	$	65,084,672	30.2	%	$	67,851,681	31.1	%	$	68,123,027	31.3	%	$	67,112,146	30.9	%	$	68,466,549	31.2	%

Less:

Participations (10% of Net Profit each)
Talent	$	0		$	519,505	$	3,079,302	2.2	%	$	2,517,686	1.7	%	$	3,026,200	1.6	%	$	7,317,416	3.1	%	$	6,508,467	3.0	%	$	6,785,168	3.1	%	$	6,812,303	3.1	%	$	6,711,215	3.1	%	$	6,846,655	3.1	%
Writers		0			519,505		3,079,302	2.2	%		2,517,686	1.7	%		3,026,200	1.6	%		7,317,416	3.1	%		6,508,467	3.0	%		6,785,168	3.1	%		6,812,303	3.1	%		6,711,215	3.1	%		6,846,655	3.1	%
Total Participations	$	0		$	1,039,011	$	6,158,604	4.4	%	$	5,035,371	3.3	%	$	6,052,400	3.3	%	$	14,634,832	6.3	%	$	13,016,934	6.0	%	$	13,570,336	6.2	%	$	13,624,605	6.3	%	$	13,422,429	6.2	%	$	13,693,310	6.2	%

Net Profit After Participations	$	(48,150,342	)	$	4,156,043	$	24,634,415	17.6	%	$	20,141,484	13.2	%	$	24,209,598	13.1	%	$	58,539,328	25.0	%	$	52,067,738	24.2	%	$	54,281,345	24.9	%	$	54,498,422	25.0	%	$	53,689,717	24.7	%	$	54,773,239	25.0	%

Less:

Content Partners (15% of Net Profit after Participations)	$	0		$	623,406	$	3,695,162	2.6	%	$	3,021,223	2.0	%	$	3,631,440	2.0	%	$	8,780,899	3.8	%	$	7,810,161	3.6	%	$	8,142,202	3.7	%	$	8,174,763	3.8	%	$	8,053,458	3.7	%	$	8,215,986	3.7	%

Total Contribution Profit from Joint Venture Films	$	(48,150,342	)	$	3,532,637	$	20,939,253	15.0	%	$	17,120,262	11.2	%	$	20,578,159	11.1	%	$	49,758,429	21.3	%	$	44,257,577	20.6	%	$	46,139,143	21.2	%	$	46,323,658	21.3	%	$	45,636,259	21.0	%	$	46,557,253	21.2	%

Allocation to Platinum Studios, Inc. (30%)

Contribution Profit from Joint Venture Films	$	(14,445,103	)	$	1,059,791	$	6,281,776	4.5	%	$	5,136,078	3.4	%	$	6,173,448	3.3	%	$	14,927,529	6.4	%	$	13,277,273	6.2	%	$	13,841,743	6.4	%	$	13,897,098	6.4	%	$	13,690,878	6.3	%	$	13,967,176	6.4	%

Source: Exhibits 8 through 12.

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 7

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1:

The Joint Venture Film Division model assumes that Platinum forms joint ventures with other studios to produce and distribute low budget films (with average budgets of $15-25 million), and Platinum assumes 30% of all costs and profits.

To estimate the future cash flows generated by the Joint Venture Film Division, we estimated film ultimates based on genre and budget size as presented in Exhibits 8, page 106.

In addition, we also estimated the number of films that Platinum would release per year. Based on Platinum’s business plan, interviews with management and the potential of sequels (See Endnote 1 of Schedule 3, page 44), we assumed the number of projects per year would range between 2 and 3.

Schedule 8

Platinum Studios, Inc.

Method 1: Discounted Cash Flow Method for the Joint Venture Film Division ¹

Scenario: Base

Date of Value: March 31, 2008

	Apr 1 - Dec 31, 2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			2018			Terminal Year - 2019
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)			(12)

Contribution Profit from Joint Venture Films (Schedule 7)	$	(10,833,827	)	$	1,059,791		$	6,281,776		$	5,136,078		$	6,173,448		$	14,927,529		$	13,277,273		$	13,841,743		$	13,897,098		$	13,690,878		$	13,967,176

Less: Overhead Allocation		(1,125,000	)		(1,546,500	)		(1,594,442	)		(1,643,869	)		(1,694,829	)		(1,747,369	)		(1,801,537	)		(1,857,385	)		(1,914,964	)		(1,974,328	)		(2,035,532	)

EBITDA from Joint Venture Films	$	(11,958,827	)	$	(486,709	)	$	4,687,334		$	3,492,209		$	4,478,618		$	13,180,160		$	11,475,736		$	11,984,358		$	11,982,134		$	11,716,550		$	11,931,644

Less: Depreciation		(375,000	)		(500,000	)		(500,000	)		(500,000	)		(500,000	)		(500,000	)		(500,000	)		(500,000	)		(500,000	)		(500,000	)		(500,000	)

EBIT from Joint Venture Films	$	(12,333,827	)	$	(986,709	)	$	4,187,334		$	2,992,209		$	3,978,618		$	12,680,160		$	10,975,736		$	11,484,358		$	11,482,134		$	11,216,550		$	11,431,644

Less: Taxes (40% tax rate)		4,933,531			394,684			(1,674,934	)		(1,196,884	)		(1,591,447	)		(5,072,064	)		(4,390,294	)		(4,593,743	)		(4,592,853	)		(4,486,620	)		(4,572,658	)

Net Income from Joint Venture Films	$	(7,400,296	)	$	(592,025	)	$	2,512,401		$	1,795,326		$	2,387,171		$	7,608,096		$	6,585,442		$	6,890,615		$	6,889,280		$	6,729,930		$	6,858,986

Add: Depreciation		375,000			500,000			500,000			500,000			500,000			500,000			500,000			500,000			500,000			500,000			500,000
Less: Capital Expenditures		(300,000	)		(412,000	)		(424,360	)		(437,091	)		(450,204	)		(463,710	)		(477,621	)		(491,950	)		(506,708	)		(521,909	)		(537,567	)

Net Cash Flow to MVIC from Joint Venture Films	$	(7,325,296	)	$	(504,025	)	$	2,588,041		$	1,858,235		$	2,436,968		$	7,644,386		$	6,607,821		$	6,898,665		$	6,882,572		$	6,708,021		$	6,821,420

Terminal Value Calculation
End Year Economic Income (E0)																																		$	6,821,420
Long Term Growth Rate (g)																																			3.1	%
Terminal Year Economic Income (E1 = E0 x (1+g))																																		$	7,032,884
Capitalization Rate (discount rate - g)																																			13.9	%
Terminal Value (V = E1 / capitalization rate) 4																																		$	50,561,220

Discount Rate (Exhibits 6A - 6C)2		1.6	%		1.6	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%

Present Value Factor 3		0.99			0.98			0.70			0.60			0.51			0.44			0.37			0.32			0.27			0.23			0.20			0.20

Present Value of Net Cash Flow to MVIC	$	(7,282,897	)	$	(494,367	)	$	1,817,491		$	1,115,271		$	1,249,994		$	3,351,035		$	2,475,557		$	2,208,809		$	1,883,312		$	1,568,715		$	1,363,336		$	10,105,218

Fair Market Value of Joint Venture Film Division	$	19,361,474

Note 1: See Endnote 1 to Schedule 4, page 46.

Note 2: See Endnote 2 to Schedule 4, page 46. For years 2008 through 2010, as the Joint Venture Film Division is projected to generate negative cash flow, SP&H applied the 1-year Treasury Securities rate as a discount rate as it represents the alternative investment of a prudent investor.

Note 3: See Endnote 3 to Schedule 4, page 49.

Note 4: See Endnote 4 to Schedule 4, page 49.

SANLI PASTORE & HILL, INC.

Schedule 9

Platinum Studios, Inc.

Method 2: Market Multiplier Method for Joint Venture Film Division ¹

Date of Value: March 31, 2008

Total Number of Characters in Library			5,622

Percent of Characters Adaptable to Low Budget Joint Venture Films			7	%

Number of Characters Adaptable to Low Budget Joint Venture Films			394

Market Multiple (Appendix C)	x	$	40,000

Fair Market Value of Joint Venture Film Division		$	15,741,600

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 9

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

In the market multiplier method, the fair market value of the Intellectual Property in the Joint Venture Film Division was determined by multiplying the number of characters by an appropriate media format adaptation percentage, which we derived based on interviews with management and industry analysis.

To determine the appropriate market multiple, we searched for library transactions in film entertainment industry. We obtained library transaction data from Vogel 2007 and press releases, and made adjustments to the multiples to match the size and nature of the Joint Venture Film Division. (See Appendix C, page 136) To determine the fair market value of the Intellectual Property in Joint Venture Film Division, we utilized the price per feature multiple. Based on our analysis of the Company as well as the industry, competition, and economic conditions for Platinum, we selected the average of low quartile price per feature multiple of $40,000.

Schedule 10

Platinum Studios, Inc.

Fair Market Value of Intellectual Property in Joint Venture Film Division

Date of Value: March 31, 2008

	Fair Market Value		Weight			Weighted Fair Market Value

Method 1: Discounted Cash Flow Method (Schedule 8)	$	19,361,474		75	%	$	14,521,106

Method 2: Market Multiplier Method (Schedule 9)	$	15,741,600		25	%	$	3,935,400
Fair Market Value of Intellectual Property in Joint Venture Film Division (Rounded)						$	18,457,000

SANLI PASTORE & HILL, INC.

Schedule 11

Platinum Studios, Inc.

Film Entertainment: Projected Cash Flow for Film Fund Division ¹

Date of Value: March 31, 2008

	2008		2009			2010					2011					2012				2013				2014				2015				2016				2017				2018
	(1)		(2)			(3)					(4)					(5)				(6)				(7)				(8)				(9)				(10)				(11)
Assumptions:

Film Fund Projects Began per Year		0		2			3					4					4				4				4				5				5				5				5

Projected Cash Flows:

Gross Receipts
Domestic Theatrical	$	0	$	0		$	13,500,000		32.1	%	$	20,250,000		26.5	%	$	27,000,000	24.7	%	$	27,000,000	22.1	%	$	27,000,000	21.0	%	$	27,000,000	20.3	%	$	33,750,000	21.5	%	$	33,750,000	20.4	%	$	33,750,000	19.9	%
International Theatrical		0		0			5,984,000		14.3	%		10,032,000		13.1	%		13,552,000	12.4	%		14,080,000	11.5	%		14,080,000	10.9	%		14,080,000	10.6	%		17,072,000	10.9	%		17,600,000	10.6	%		17,600,000	10.4	%
Domestic Home Video		0		0			15,795,000		37.6	%		25,166,700		32.9	%		35,064,900	32.1	%		37,276,200	30.5	%		38,961,000	30.3	%		39,908,700	30.0	%		48,438,000	30.9	%		49,596,300	30.0	%		50,649,300	29.9	%
International Home Video		0		0			6,318,000		15.0	%		13,899,600		18.2	%		19,901,700	18.2	%		22,807,980	18.7	%		23,566,140	18.3	%		24,008,400	18.0	%		27,483,300	17.5	%		29,947,320	18.1	%		30,515,940	18.0	%
Domestic Television
PPV		0		0			50,625		0.1	%		1,712,813		2.2	%		2,556,563	2.3	%		3,375,000	2.8	%		3,375,000	2.6	%		3,375,000	2.5	%		3,400,313	2.2	%		4,218,750	2.5	%		4,218,750	2.5	%
Pay TV		0		0			182,250		0.4	%		4,829,625		6.3	%		8,535,375	7.8	%		11,481,750	9.4	%		12,150,000	9.4	%		12,150,000	9.1	%		12,241,125	7.8	%		14,519,250	8.8	%		15,187,500	9.0	%
Network TV		0		0			0		0.0	%		0		0.0	%		364,500	0.3	%		1,761,750	1.4	%		2,916,000	2.3	%		4,070,250	3.1	%		4,556,250	2.9	%		4,799,250	2.9	%		5,042,250	3.0	%
Syndicated TV		0		0			0		0.0	%		0		0.0	%		0	0.0	%		94,500	0.1	%		236,250	0.2	%		425,250	0.3	%		567,000	0.4	%		685,125	0.4	%		779,625	0.5	%
International Television
Pay TV		0		0			0		0.0	%		348,480		0.5	%		1,800,480	1.6	%		3,310,560	2.7	%		4,297,920	3.3	%		4,646,400	3.5	%		4,646,400	3.0	%		4,820,640	2.9	%		5,459,520	3.2	%
Syndicated TV		0		0			0		0.0	%		0		0.0	%		0	0.0	%		704,000	0.6	%		1,760,000	1.4	%		3,168,000	2.4	%		4,224,000	2.7	%		5,104,000	3.1	%		5,808,000	3.4	%
Domestic Merchandising		0		0			98,102		0.2	%		156,309		0.2	%		217,786	0.2	%		231,520	0.2	%		241,984	0.2	%		249,178	0.2	%		302,807	0.2	%		310,656	0.2	%		316,542	0.2	%
International Merchandising		0		0			63,948		0.2	%		101,890		0.1	%		141,964	0.1	%		150,917	0.1	%		157,738	0.1	%		162,427	0.1	%		197,386	0.1	%		202,501	0.1	%		206,338	0.1	%
Total Gross Receipts	$	0	$	0		$	41,991,925		100.0	%	$	76,497,416		100.0	%	$	109,135,268	100.0	%	$	122,274,177	100.0	%	$	128,742,032	100.0	%	$	133,243,606	100.0	%	$	156,878,581	100.0	%	$	165,553,792	100.0	%	$	169,533,765	100.0	%

Distribution Costs
Domestic Theatrical	$	0	$	0		$	2,700,000		6.4	%	$	4,050,000		5.3	%	$	5,400,000	4.9	%	$	5,400,000	4.4	%	$	5,400,000	4.2	%	$	5,400,000	4.1	%	$	6,750,000	4.3	%	$	6,750,000	4.1	%	$	6,750,000	4.0	%
International Theatrical		0		0			1,196,800		2.9	%		2,006,400		2.6	%		2,710,400	2.5	%		2,816,000	2.3	%		2,816,000	2.2	%		2,816,000	2.1	%		3,414,400	2.2	%		3,520,000	2.1	%		3,520,000	2.1	%
Domestic Home Video		0		0			2,948,400		7.0	%		4,633,200		6.1	%		6,381,180	5.8	%		6,697,080	5.5	%		6,970,860	5.4	%		7,223,580	5.4	%		8,950,500	5.7	%		9,308,520	5.6	%		9,645,480	5.7	%
International Home Video		0		0			1,137,240		2.7	%		2,539,836		3.3	%		3,651,804	3.3	%		4,233,060	3.5	%		4,422,600	3.4	%		4,561,596	3.4	%		5,243,940	3.3	%		5,762,016	3.5	%		5,926,284	3.5	%
Domestic Television Cost		0		0			106,650		0.3	%		1,226,475		1.6	%		2,239,650	2.1	%		3,199,500	2.6	%		3,626,100	2.8	%		3,828,735	2.9	%		3,999,375	2.5	%		4,617,945	2.8	%		4,916,565	2.9	%
International Television Cost		0		0			58,432		0.1	%		671,968		0.9	%		1,227,072	1.1	%		1,752,960	1.4	%		1,986,688	1.5	%		2,097,709	1.6	%		2,191,200	1.4	%		2,530,106	1.5	%		2,693,715	1.6	%
Total Distribution Costs	$	0	$	0		$	8,147,522		19.4	%	$	15,127,879		19.8	%	$	21,610,106	19.8	%	$	24,098,600	19.7	%	$	25,222,248	19.6	%	$	25,927,620	19.5	%	$	30,549,415	19.5	%	$	32,488,587	19.6	%	$	33,452,044	19.7	%

Publicity Expenses
Domestic Theatrical
Advertising	$	0	$	933,435		$	9,801,064		23.3	%	$	14,468,237		18.9	%	$	18,668,693	17.1	%	$	18,668,693	15.3	%	$	18,668,693	14.5	%	$	19,135,410	14.4	%	$	23,335,866	14.9	%	$	23,335,866	14.1	%	$	23,335,866	13.8	%
Prints		0		0			1,164,134		2.8	%		1,746,201		2.3	%		2,328,267	2.1	%		2,328,267	1.9	%		2,328,267	1.8	%		2,328,267	1.7	%		2,910,334	1.9	%		2,910,334	1.8	%		2,910,334	1.7	%
International Theatrical
Advertising		0		466,717			4,900,532		11.7	%		7,234,119		9.5	%		9,334,347	8.6	%		9,334,347	7.6	%		9,334,347	7.3	%		9,567,705	7.2	%		11,667,933	7.4	%		11,667,933	7.0	%		11,667,933	6.9	%
Prints		0		0			494,757		1.2	%		829,445		1.1	%		1,120,479	1.0	%		1,164,134	1.0	%		1,164,134	0.9	%		1,164,134	0.9	%		1,411,512	0.9	%		1,455,167	0.9	%		1,455,167	0.9	%
Total Publicity Expenses	$	0	$	1,400,152		$	16,360,486		39.0	%	$	24,278,002		31.7	%	$	31,451,786	28.8	%	$	31,495,441	25.8	%	$	31,495,441	24.5	%	$	32,195,517	24.2	%	$	39,325,646	25.1	%	$	39,369,301	23.8	%	$	39,369,301	23.2	%

Negative Costs, Net of Story Rights Acquisitions	$	0	$	20,000,000		$	30,000,000		71.4	%	$	40,000,000		52.3	%	$	40,000,000	36.7	%	$	40,000,000	32.7	%	$	40,000,000	31.1	%	$	50,000,000	37.5	%	$	50,000,000	31.9	%	$	50,000,000	30.2	%	$	50,000,000	29.5	%

Net Profit	$	0	$	(21,400,152	)	$	(12,516,084	)	-29.8	%	$	(2,908,464	)	-3.8	%	$	16,073,376	14.7	%	$	26,680,136	21.8	%	$	32,024,344	24.9	%	$	25,120,469	18.9	%	$	37,003,520	23.6	%	$	43,695,904	26.4	%	$	46,712,420	27.6	%

Less:

Participations (10% of Net Profit each)
Talent	$	0	$	0		$	0		0.0	%	$	0		0.0	%	$	1,607,338	1.5	%	$	2,668,014	2.2	%	$	3,202,434	2.5	%	$	2,512,047	1.9	%	$	3,700,352	2.4	%	$	4,369,590	2.6	%	$	4,671,242	2.8	%
Writers		0		0			0		0.0	%		0		0.0	%		1,607,338	1.5	%		2,668,014	2.2	%		3,202,434	2.5	%		2,512,047	1.9	%		3,700,352	2.4	%		4,369,590	2.6	%		4,671,242	2.8	%
Total Participation	$	0	$	0		$	0		0.0	%	$	0		0.0	%	$	3,214,675	2.9	%	$	5,336,027	4.4	%	$	6,404,869	5.0	%	$	5,024,094	3.8	%	$	7,400,704	4.7	%	$	8,739,181	5.3	%	$	9,342,484	5.5	%

Net Profit After Participations	$	0	$	(21,400,152	)	$	(12,516,084	)	-29.8	%	$	(2,908,464	)	-3.8	%	$	12,858,701	11.8	%	$	21,344,109	17.5	%	$	25,619,475	19.9	%	$	20,096,376	15.1	%	$	29,602,816	18.9	%	$	34,956,724	21.1	%	$	37,369,936	22.0	%

Less:

Content Partners (15% of Net Profit after Participations)	$	0	$	0		$	0		0.0	%	$	0		0.0	%	$	1,928,805	1.8	%	$	3,201,616	2.6	%	$	3,842,921	3.0	%	$	3,014,456	2.3	%	$	4,440,422	2.8	%	$	5,243,509	3.2	%	$	5,605,490	3.3	%

Contribution Profit from Film Fund Films	$	0	$	(21,400,152	)	$	(12,516,084	)	-29.8	%	$	(2,908,464	)	-3.8	%	$	10,929,896	10.0	%	$	18,142,493	14.8	%	$	21,776,554	16.9	%	$	17,081,919	12.8	%	$	25,162,393	16.0	%	$	29,713,215	17.9	%	$	31,764,445	18.7	%

Source: Exhibits 13 and 14.

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 11

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1:

The Film Fund Division model assumes that Platinum finances 100% of low budget Indie films (with average budgets of $10 million) via the Film Fund.

The Film Fund, formed by Platinum, intends to raise capital for and finance (“slate financing”) 5 to 15 Indie films including the following: Hunter, Hive, Blood Nation, Red Mantis, The Darkness, Dead of Night, Chain, The Disciple, Final Orbit, Ghosting, Gun Gallon, Nightfall, Three Hanged Men, Consumed, and American Wasteland.

To estimate the future cash flows generated by the Film Fund Division, we estimated film ultimates as presented in Exhibit 13, page 111.

In addition, we also estimated the number of films that Platinum would release per year in the Film Fund Division. Based on Platinum’s business plan, interviews with management and the potential of sequels (See Endnote 1 of Schedule 3, page 44), we assumed the number of projects per year would range between 0 and 5.

Schedule 12

Platinum Studios, Inc.

Method 1: Discounted Cash Flow Method for the Film Fund Division¹

Date of Value: March 31, 2008

	Apr 1 - Dec 31, 2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			2018			Terminal Year - 2019
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)			(12)
Contribution Profit from Film Fund Films	$	0		$	(21,400,152	)	$	(12,516,084	)	$	(2,908,464	)	$	10,929,896		$	18,142,493		$	21,776,554		$	17,081,919		$	25,162,393		$	29,713,215		$	31,764,445
Less: Overhead Allocation		0			(1,500,000	)		(1,546,500	)		(1,594,442	)		(1,643,869	)		(1,694,829	)		(1,747,369	)		(1,801,537	)		(1,857,385	)		(1,914,964	)		(1,974,328	)
EBITDA from Film Fund Films	$	0		$	(22,900,152	)	$	(14,062,584	)	$	(4,502,906	)	$	9,286,026		$	16,447,664		$	20,029,185		$	15,280,382		$	23,305,008		$	27,798,251		$	29,790,118
Less: Depreciation		0			(550,000	)		(550,000	)		(550,000	)		(550,000	)		(550,000	)		(550,000	)		(550,000	)		(550,000	)		(550,000	)		(550,000	)
EBIT from Film Fund Films	$	0		$	(23,450,152	)	$	(14,612,584	)	$	(5,052,906	)	$	8,736,026		$	15,897,664		$	19,479,185		$	14,730,382		$	22,755,008		$	27,248,251		$	29,240,118
Less: Taxes (40% tax rate)		0			9,380,061			5,845,034			2,021,162			(3,494,411	)		(6,359,065	)		(7,791,674	)		(5,892,153	)		(9,102,003	)		(10,899,300	)		(11,696,047	)
Net Income from Film Fund Films	$	0		$	(14,070,091	)	$	(8,767,550	)	$	(3,031,743	)	$	5,241,616		$	9,538,598		$	11,687,511		$	8,838,229		$	13,653,005		$	16,348,951		$	17,544,071
Add: Depreciation		0			550,000			550,000			550,000			550,000			550,000			550,000			550,000			550,000			550,000			550,000
Less: Capital Expenditures		0			(750,000	)		(772,500	)		(795,675	)		(819,545	)		(844,132	)		(869,456	)		(895,539	)		(922,405	)		(950,078	)		(978,580	)
Net Cash Flow to MVIC from Film Fund Films	$	0		$	(14,270,091	)	$	(8,990,050	)	$	(3,277,418	)	$	4,972,071		$	9,244,467		$	11,368,055		$	8,492,690		$	13,280,600		$	15,948,873		$	17,115,491
Terminal Value Calculation
End Year Economic Income (E₀)																																		$	17,115,491
Long Term Growth Rate (g)																																			3.1	%
Terminal Year Economic Income (E₁ = E₀ x (1+g))																																		$	17,646,071
Capitalization Rate (discount rate - g)																																			13.9	%
Terminal Value (V = E₁ / capitalization rate)⁴																																		$	126,862,164

Discount Rate (Exhibits 6A - 6C)²		1.6	%		1.6	%		1.6	%		1.6	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%

Present Value Factor ³		0.99			0.98			0.97			0.95			0.51			0.44			0.37			0.32			0.27			0.23			0.20			0.20
Present Value of Net Cash Flow to MVIC	$	0		$	(13,996,627	)	$	(8,682,325	)	$	(3,116,615	)	$	2,550,324		$	4,052,455		$	4,258,934		$	2,719,182		$	3,634,035		$	3,729,751		$	3,420,720		$	25,354,804

Fair Market Value of Film Fund Division	$	23,924,637

Note 1: See Endnote 1 to Schedule 4, page 46.

Note 2: See Endnote 2 to Schedule 4, page 46. For years 2008 through 2010, as the Film Fund Division is projected to generate negative cash flow, SP&H applied the 1-year Treasury Securities rate as a discount rate as it represents the alternative investment of a prudent investor.

Note 3: See Endnote 3 to Schedule 4, page 49.

Note 4: See Endnote 4 to Schedule 4, page 49.

SANLI PASTORE & HILL, INC.

Schedule 13

Platinum Studios, Inc.

Method 2: Market Multiplier Method for Film Fund Division ¹

Date of Value: March 31, 2008

Total Number of Characters in Library			5,622


Percent of Characters Adaptable to Low Budget Film Fund Films			10	%

Number of Characters Adaptable to Low Budget Film Fund Films			562

Market Multiple (Appendix C)	x	$	40,000

Fair Market Value of Film Fund Division		$	22,488,000

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 13

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

In the market multiplier method, the fair market value of the Intellectual Property in the Film Fund Division was determined by multiplying the number of characters by an appropriate media format adaptation percentage, which we derived based on interviews with management and industry analysis.

To determine the appropriate market multiple, we searched for library transactions in film entertainment industry. We obtained library transaction data from Vogel 2007 and press releases, and made adjustments to the multiples to match the size and nature of the Film Fund Division. (See Appendix C, page 136.) To determine the fair market value of the Intellectual Property in Film Fund Division, we utilized the price per feature multiple. Based on our analysis of the Company as well as the industry, competition, and economic conditions for Platinum, we selected the price per feature multiple of $40,000 which falls between the minimum and lower quartile of the multiples.

Schedule 14

Platinum Studios, Inc.

Fair Market Value of Intellectual Property in Film Fund Division

Date of Value: March 31, 2008

	Fair Market Value		Weight			Weighted Fair Market Value

Method 1: Discounted Cash Flow Method (Schedule 12)	$	23,924,637		75	%	$	17,943,478

Method 2: Market Multiplier Method (Schedule 13)	$	22,488,000		25	%	$	5,622,000
Fair Market Value of Intellectual Property in Film Fund Division (Rounded)						$	23,565,000

SANLI PASTORE & HILL, INC.

Schedule 15

Platinum Studios, Inc.

Film Entertainment: Projected Cash Flow for Direct to DVD Division ¹

Date of Value: March 31, 2008

	2008		2009			2010					2011				2012				2013				2014				2015				2016				2017				2018
	(1)		(2)			(3)					(4)				(5)				(6)				(7)				(8)				(9)				(10)				(11)
Assumptions:

Direct to DVD Projects Began per Year		0		2			4					4				5				6				7				7				7				7				7

Projected Cash Flows:

Gross Receipts
Home Video		0		0			4,380,000		97.6	%		9,307,500	81.4	%		10,128,750	69.7	%		12,647,250	71.6	%		15,220,500	70.8	%		17,930,625	70.4	%		18,450,750	67.8	%		18,697,125	67.3	%		18,834,000	67.1	%
Television
PPV		0		0			109,500		2.4	%		219,000	1.9	%		219,000	1.5	%		273,750	1.5	%		328,500	1.5	%		383,250	1.5	%		383,250	1.4	%		383,250	1.4	%		383,250	1.4	%
Pay TV/ Free TV		0		0			0		0.0	%		1,901,194	16.6	%		4,182,626	28.8	%		4,752,984	26.9	%		5,957,074	27.7	%		7,161,163	28.1	%		8,396,939	30.8	%		8,713,805	31.4	%		8,840,551	31.5	%
Total Gross Receipts	$	0	$	0		$	4,489,500		100.0	%	$	11,427,694	100.0	%	$	14,530,376	100.0	%	$	17,673,984	100.0	%	$	21,506,074	100.0	%	$	25,475,038	100.0	%	$	27,230,939	100.0	%	$	27,794,180	100.0	%	$	28,057,801	100.0	%

Distribution Costs
Home Video		0		0			1,533,000		34.1	%		3,257,625	28.5	%		3,545,063	24.4	%		4,426,538	25.0	%		5,327,175	24.8	%		6,275,719	24.6	%		6,457,763	23.7	%		6,543,994	23.5	%		6,591,900	23.5	%
Television Cost		0		0			0		0.0	%		99,166	0.9	%		218,165	1.5	%		247,915	1.4	%		310,720	1.4	%		373,525	1.5	%		437,983	1.6	%		454,511	1.6	%		461,122	1.6	%
Total Distribution Costs	$	0	$	0		$	1,533,000		34.1	%	$	3,356,791	29.4	%	$	3,763,228	25.9	%	$	4,674,452	26.4	%	$	5,637,895	26.2	%	$	6,649,244	26.1	%	$	6,895,745	25.3	%	$	6,998,504	25.2	%	$	7,053,022	25.1	%

Negative Costs, Net of Story Rights Acquisitions	$	0	$	750,000		$	3,750,000		83.5	%	$	6,000,000	52.5	%	$	6,375,000	43.9	%	$	7,875,000	44.6	%	$	9,375,000	43.6	%	$	10,500,000	41.2	%	$	10,500,000	38.6	%	$	10,500,000	37.8	%	$	10,500,000	37.4	%

Net Profit	$	0	$	(750,000	)	$	(793,500	)	-17.7	%	$	2,070,903	18.1	%	$	4,392,149	30.2	%	$	5,124,532	29.0	%	$	6,493,179	30.2	%	$	8,325,794	32.7	%	$	9,835,194	36.1	%	$	10,295,675	37.0	%	$	10,504,779	37.4	%

Less:

Participations (10% of Net Profit each)
Talent	$	0	$	0		$	0		0.0	%	$	207,090	1.8	%	$	439,215	3.0	%	$	512,453	2.9	%	$	649,318	3.0	%	$	832,579	3.3	%	$	983,519	3.6	%	$	1,029,568	3.7	%	$	1,050,478	3.7	%
Writers		0		0			0		0.0	%		207,090	1.8	%		439,215	3.0	%		512,453	2.9	%		649,318	3.0	%		832,579	3.3	%		983,519	3.6	%		1,029,568	3.7	%		1,050,478	3.7	%
Total Participation	$	0	$	0		$	0		0.0	%	$	414,181	3.6	%	$	878,430	6.0	%	$	1,024,906	5.8	%	$	1,298,636	6.0	%	$	1,665,159	6.5	%	$	1,967,039	7.2	%	$	2,059,135	7.4	%	$	2,100,956	7.5	%

Net Profit After Participations	$	0	$	(750,000	)	$	(793,500	)	-17.7	%	$	1,656,722	14.5	%	$	3,513,719	24.2	%	$	4,099,626	23.2	%	$	5,194,543	24.2	%	$	6,660,635	26.1	%	$	7,868,155	28.9	%	$	8,236,540	29.6	%	$	8,403,823	30.0	%

Less:

Content Partners (15% of Net Profit after Participations)	$	0	$	0		$	0		0.0	%	$	248,508	2.2	%	$	527,058	3.6	%	$	614,944	3.5	%	$	779,181	3.6	%	$	999,095	3.9	%	$	1,180,223	4.3	%	$	1,235,481	4.4	%	$	1,260,574	4.5	%

Contribution Profit from Direct to DVD Films	$	0	$	(750,000	)	$	(793,500	)	-17.7	%	$	1,408,214	12.3	%	$	2,986,661	20.6	%	$	3,484,682	19.7	%	$	4,415,362	20.5	%	$	5,661,540	22.2	%	$	6,687,932	24.6	%	$	7,001,059	25.2	%	$	7,143,250	25.5	%

Source: Exhibits 15 through 17.

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 15

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1:

The Direct to DVD Division model assumes that Platinum finances 100% of Direct to DVD films (with average budgets of $1.5 million) via private financing.

To estimate the future cash flows generated by the Direct to DVD Division, we estimated average film ultimates as presented in Exhibit 15, page 113.

We then estimated the timing of the cash flows in each year, as presented in Exhibit 16, page 114. As such, we developed the cash flows of each individual film in each year, as presented in Exhibit 17, page 115.

In addition, we also estimated the number of films that Platinum would release per year in the Direct to DVD Division. Based on Platinum’s business plan, interviews with management and the potential of sequels (See Endnote 1 of Schedule 3, page 44), we assumed the number of projects per year would range between 0 and 7.

Schedule 16

Platinum Studios, Inc.

Method 1: Discounted Cash Flow Method for the Direct to DVD Film Division¹

Date of Value: March 31, 2008

	Apr 1 - Dec 31, 2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			2018			Terminal Year - 2019
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)			(12)

Contribution Profit from Direct to DVD Films	$	0		$	(750,000	)	$	(793,500	)	$	1,408,214		$	2,986,661		$	3,484,682		$	4,415,362		$	5,661,540		$	6,687,932		$	7,001,059		$	7,143,250

Less: Overhead Allocation		0			(700,000	)		(721,700	)		(744,073	)		(767,139	)		(790,920	)		(815,439	)		(840,717	)		(866,780	)		(893,650	)		(921,353	)

EBITDA from Direct to DVD Films	$	0		$	(1,450,000	)	$	(1,515,200	)	$	664,141		$	2,219,522		$	2,693,762		$	3,599,923		$	4,820,823		$	5,821,152		$	6,107,409		$	6,221,897

Less: Depreciation		0			(450,000	)		(450,000	)		(450,000	)		(450,000	)		(450,000	)		(450,000	)		(450,000	)		(450,000	)		(450,000	)		(450,000	)

EBIT from Direct to DVD Films	$	0		$	(1,900,000	)	$	(1,965,200	)	$	214,141		$	1,769,522		$	2,243,762		$	3,149,923		$	4,370,823		$	5,371,152		$	5,657,409		$	5,771,897

Less: Taxes (40% tax rate)		0			760,000			786,080			(85,656	)		(707,809	)		(897,505	)		(1,259,969	)		(1,748,329	)		(2,148,461	)		(2,262,964	)		(2,308,759	)

Net Income from Direct to DVD Films	$	0		$	(1,140,000	)	$	(1,179,120	)	$	128,485		$	1,061,713		$	1,346,257		$	1,889,954		$	2,622,494		$	3,222,691		$	3,394,446		$	3,463,138

Add: Depreciation		0			450,000			450,000			450,000			450,000			450,000			450,000			450,000			450,000			450,000			450,000
Less: Capital Expenditures		0			(250,000	)		(257,500	)		(265,225	)		(273,182	)		(281,377	)		(289,819	)		(298,513	)		(307,468	)		(316,693	)		(326,193	)

Net Cash Flow to MVIC from Direct to DVD Films	$	0		$	(940,000	)	$	(986,620	)	$	313,260		$	1,238,532		$	1,514,880		$	2,050,135		$	2,773,981		$	3,365,223		$	3,527,753		$	3,586,945

Terminal Value Calculation
End Year Economic Income (E₀)																																		$	3,586,945
Long Term Growth Rate (g)																																			3.1	%
Terminal Year Economic Income (E₁ = E₀ x (1+g))																																		$	3,698,140
Capitalization Rate (discount rate - g)																																			13.9	%
Terminal Value (V = E₁ / capitalization rate)⁴																																		$	26,586,885

Discount Rate (Exhibits 6A - 6C)²		1.6	%		1.6	%		1.6	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%		17.0	%

Present Value Factor ³		0.99			0.98			0.97			0.60			0.51			0.44			0.37			0.32			0.27			0.23			0.20			0.20

Present Value of Net Cash Flow to MVIC	$	0		$	(921,986	)	$	(952,849	)	$	188,011		$	635,280		$	664,071		$	768,064		$	888,171		$	920,842		$	824,989		$	716,891		$	5,313,683

Fair Market Value of Direct to DVD Film Division	$	9,045,166

Note 1: See Endnote 1 to Schedule 4, page 46.

Note 2: See Endnote 2 to Schedule 4, page 46. For years 2008 through 2010, as the Direct to DVD Division is projected to generate negative cash flow, SP&H applied the 1-year Treasury Securities rate as a discount rate as it represents the alternative investment of a prudent investor.

Note 3: See Endnote 3 to Schedule 4, page 49.

Note 4: See Endnote 4 to Schedule 4, page 49.

SANLI PASTORE & HILL, INC.

Schedule 17

Platinum Studios, Inc.

Method 2: Market Multiplier Method for Direct to DVD Film Division ¹

Date of Value: March 31, 2008

Total Number of Characters in Library			5,622

Percent of Characters Adaptable to Direct to DVD Films			12	%

Number of Characters Adaptable to Direct to DVD Films			675

Market Multiple (Appendix C)	x	$	15,000

Fair Market Value of Direct to DVD Film Division		$	10,119,600

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 17

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

In the market multiplier method, the fair market value of the Intellectual Property in the Direct to DVD Division was determined by multiplying the number of characters by an appropriate media format adaptation percentage, which we derived based on interviews with management and industry analysis.

To determine the appropriate market multiple, we searched for library transactions in film entertainment industry. We obtained library transaction data from Vogel 2007 and press releases, and made adjustments to the multiples to match the size and nature of the Direct to DVD Division. (See Appendix C, page 136) To determine the fair market value of the Intellectual Property in Direct to DVD Division, we utilized the price per feature multiple. Based on our analysis of the Company as well as the industry, competition, and economic conditions for Platinum, we selected the price per feature multiple of $15,000 which falls in the high range of the multiples.

Schedule 18

Platinum Studios, Inc.

Fair Market Value of Intellectual Property in Direct to DVD Film Division

Date of Value: March 31, 2008

	Fair Market Value		Weight			Weighted Fair Market Value

Method 1: Discounted Cash Flow Method (Schedule 16)	$	9,045,166		75	%	$	6,783,874

Method 2: Market Multiplier Method (Schedule 17)	$	10,119,600		25	%	$	2,529,900
Fair Market Value of Intellectual Property in Direct to DVD Film Division (Rounded)						$	9,314,000

SANLI PASTORE & HILL, INC.

Schedule 19

Platinum Studios, Inc.

Projected Cash Flow for Digital Publishing Division

Date of Value: March 31, 2008

	Apr 1 - Dec 31, 2008					2009					2010					2011				2012				2013				2014				2015				2016				2017
	(1)					(2)					(3)					(4)				(5)				(6)				(7)				(8)				(9)				(10)
Revenues
Revenue from Sale of Merchandise	$	0		0.0	%	$	2,487,052		17.0	%	$	5,690,375		22.0	%	$	9,764,683	24.7	%	$	11,170,798	23.3	%	$	12,779,392	20.4	%	$	14,619,625	19.5	%	$	16,724,851	17.7	%	$	19,133,229	17.1	%	$	21,888,414	15.8	%
Revenue from Sale of Advertising		2,634,264		80.0	%		4,508,696		30.9	%		5,484,632		21.2	%		6,674,807	16.9	%		8,128,074	16.9	%		9,902,109	15.8	%		12,069,926	16.1	%		14,721,362	15.5	%		17,966,930	16.1	%		21,946,928	15.8	%
Revenue from Gaming		0		0.0	%		3,150,266		21.6	%		6,018,666		23.3	%		9,429,243	23.8	%		13,461,749	28.0	%		18,206,464	29.0	%		23,765,504	31.8	%		30,254,288	31.9	%		37,803,173	33.8	%		46,559,292	33.6	%
Subscription Revenues		0		0.0	%		3,316,069		22.7	%		7,295,352		28.2	%		12,037,331	30.4	%		13,241,064	27.6	%		19,420,228	30.9	%		21,362,251	28.5	%		29,373,095	31.0	%		32,310,404	28.9	%		42,649,733	30.8	%
Syndication Revenues		658,566		20.0	%		1,127,174		7.7	%		1,371,158		5.3	%		1,668,702	4.2	%		2,032,018	4.2	%		2,475,527	3.9	%		3,017,481	4.0	%		3,680,341	3.9	%		4,491,732	4.0	%		5,486,732	4.0	%
Total Gross Revenues	$	3,292,830		100.0	%	$	14,589,257		100.0	%	$	25,860,183		100.0	%	$	39,574,766	100.0	%	$	48,033,703	100.0	%	$	62,783,720	100.0	%	$	74,834,787	100.0	%	$	94,753,936	100.0	%	$	111,705,469	100.0	%	$	138,531,100	100.0	%

Cost of Sales
Ad Agency/Partner Fee	$	1,317,132		40.0	%	$	2,254,348		15.5	%	$	2,742,316		10.6	%	$	3,337,403	8.4	%	$	2,844,826	5.9	%	$	3,465,738	5.5	%	$	4,224,474	5.6	%	$	5,152,477	5.4	%	$	6,288,425	5.6	%	$	7,681,425	5.5	%
Credit Card Processing Fees		16,464		0.5	%		28,179		0.2	%		34,279		0.1	%		41,718	0.1	%		50,800	0.1	%		61,888	0.1	%		75,437	0.1	%		92,009	0.1	%		112,293	0.1	%		137,168	0.1	%
License Fee to Creator		2,300,000		69.8	%		3,070,000		21.0	%		3,880,000		15.0	%		4,740,000	12.0	%		5,650,000	11.8	%		6,620,000	10.5	%		7,660,000	10.2	%		8,780,000	9.3	%		10,000,000	9.0	%		11,330,000	8.2	%
Properties License Fees		98,785		3.0	%		169,076		1.2	%		205,674		0.8	%		250,305	0.6	%		304,803	0.6	%		371,329	0.6	%		452,622	0.6	%		552,051	0.6	%		673,760	0.6	%		823,010	0.6	%
Syndication		230,498		7.0	%		394,511		2.7	%		479,905		1.9	%		584,046	1.5	%		711,206	1.5	%		866,435	1.4	%		1,056,119	1.4	%		1,288,119	1.4	%		1,572,106	1.4	%		1,920,356	1.4	%
Web Hosting Fee		3,165,339		96.1	%		4,642,497		31.8	%		5,106,747		19.7	%		5,617,421	14.2	%		6,179,163	12.9	%		6,797,080	10.8	%		7,476,788	10.0	%		8,224,467	8.7	%		9,046,913	8.1	%		9,951,604	7.2	%
Total Cost of Sales	$	7,128,218		216.5	%	$	10,558,611		72.4	%	$	12,448,920		48.1	%	$	14,570,893	36.8	%	$	15,740,799	32.8	%	$	18,182,470	29.0	%	$	20,945,440	28.0	%	$	24,089,122	25.4	%	$	27,693,498	24.8	%	$	31,843,564	23.0	%

Gross Margin	$	(3,835,388	)	-116.5	%	$	4,030,646		27.6	%	$	13,411,262		51.9	%	$	25,003,873	63.2	%	$	32,292,904	67.2	%	$	44,601,251	71.0	%	$	53,889,347	72.0	%	$	70,664,814	74.6	%	$	84,011,971	75.2	%	$	106,687,537	77.0	%

Total Selling, General & Administrative	$	987,849		30.0	%	$	4,230,885		29.0	%	$	7,240,851		28.0	%	$	10,685,187	27.0	%	$	12,008,426	25.0	%	$	15,068,093	24.0	%	$	16,463,653	22.0	%	$	20,845,866	22.0	%	$	24,575,203	22.0	%	$	30,476,842	22.0	%

Other Operating Expenses
3rd Party Production Costs	$	2,156,250		65.5	%	$	3,956,463		27.1	%	$	5,155,361		19.9	%	$	6,493,283	16.4	%	$	7,979,820	16.6	%	$	9,639,651	15.4	%	$	11,499,813	15.4	%	$	13,589,866	14.3	%	$	15,958,032	14.3	%	$	18,640,944	13.5	%
Technical & Management Consulting		93,750		2.8	%		128,875		0.9	%		132,870		0.5	%		136,989	0.3	%		141,236	0.3	%		145,614	0.2	%		150,128	0.2	%		154,782	0.2	%		159,580	0.1	%		164,527	0.1	%
Marketing		750,000		22.8	%		1,031,000		7.1	%		1,062,961		4.1	%		1,095,913	2.8	%		1,129,886	2.4	%		1,164,913	1.9	%		1,201,025	1.6	%		1,238,257	1.3	%		1,276,643	1.1	%		1,316,218	1.0	%
Software and Technical Support		37,500		1.1	%		51,550		0.4	%		53,148		0.2	%		54,796	0.1	%		56,494	0.1	%		58,246	0.1	%		60,051	0.1	%		61,913	0.1	%		63,832	0.1	%		65,811	0.0	%
Equipment Maintenance		5,625		0.2	%		10,000		0.1	%		15,000		0.1	%		15,465	0.0	%		15,944	0.0	%		16,439	0.0	%		16,948	0.0	%		17,474	0.0	%		18,015	0.0	%		18,574	0.0	%
Site & Content Acquisition/Aggregation		225,000		6.8	%		309,300		2.1	%		318,888		1.2	%		328,774	0.8	%		338,966	0.7	%		349,474	0.6	%		360,307	0.5	%		371,477	0.4	%		382,993	0.3	%		394,866	0.3	%
Web Publishing		2,004,375		60.9	%		2,755,348		18.9	%		2,840,763		11.0	%		2,928,827	7.4	%		3,019,621	6.3	%		3,113,229	5.0	%		3,209,739	4.3	%		3,309,241	3.5	%		3,411,827	3.1	%		3,517,594	2.5	%
Translations		429,375		13.0	%		590,248		4.0	%		608,545		2.4	%		627,410	1.6	%		646,860	1.3	%		666,912	1.1	%		687,587	0.9	%		708,902	0.7	%		730,878	0.7	%		753,535	0.5	%
Depreciation		75,000		2.3	%		110,000		0.8	%		121,000		0.5	%		133,100	0.3	%		146,410	0.3	%		161,051	0.3	%		177,156	0.2	%		194,872	0.2	%		214,359	0.2	%		235,795	0.2	%
Total Other Operating Expenses	$	5,776,875		175.4	%	$	8,942,783		61.3	%	$	10,308,537		39.9	%	$	11,814,557	29.9	%	$	13,475,237	28.1	%	$	15,315,528	24.4	%	$	17,362,755	23.2	%	$	19,646,783	20.7	%	$	22,216,159	19.9	%	$	25,107,864	18.1	%

Operating Income	$	(10,600,112	)	-321.9	%	$	(9,143,021	)	-62.7	%	$	(4,138,126	)	-16.0	%	$	2,504,129	6.3	%	$	6,809,241	14.2	%	$	14,217,629	22.6	%	$	20,062,940	26.8	%	$	30,172,165	31.8	%	$	37,220,608	33.3	%	$	51,102,830	36.9	%

Less: Payment to IP Partners 10%	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	250,413	0.6	%	$	680,924	1.4	%	$	1,421,763	2.3	%	$	2,006,294	2.7	%	$	3,017,216	3.2	%	$	3,722,061	3.3	%	$	5,110,283	3.7	%

Contribution Profit from Digital Publishing Division	$	(10,600,112	)	-321.9	%	$	(9,143,021	)	-62.7	%	$	(4,138,126	)	-16.0	%	$	2,253,716	5.7	%	$	6,128,317	12.8	%	$	12,795,866	20.4	%	$	18,056,646	24.1	%	$	27,154,948	28.7	%	$	33,498,547	30.0	%	$	45,992,547	33.2	%

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 19

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1:

Platinum launched a web-comics site (www.drunkduck.com) to host the digital distribution of the Company’s printed comic material and as resource for independent comic book creators to post new material. In addition, Platinum has developed multiple destination sites for individual comic properties. SP&H referred these websites as the Digital Publishing Division. The Digital Publishing Division was expected to generate revenues in the following ways: merchandise sales, advertising sales, gaming revenues, subscription revenues and syndication revenues.

Based on our research and interviews with the management, SP&H developed assumptions of revenues and costs for the Digital Publishing Division as presented in Exhibits 19 to 20, pages 117 and 118. Based on these assumptions, we projected the 10-year income statements for the Digital Publishing Division.

Schedule 20

Platinum Studios, Inc.

Method 1: Discounted Cash Flow Method for Digital Publishing Division¹

Date of Value: March 31, 2008

	Apr 1 - Dec 31, 2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			Terminal Year - 2018
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)

Contribution Profit from Digital Publishing Division (Schedule 19)	$	(10,600,112	)	$	(9,143,021	)	$	(4,138,126	)	$	2,253,716		$	6,128,317		$	12,795,866		$	18,056,646		$	27,154,948		$	33,498,547		$	45,992,547

Less: Taxes (40% tax rate)	$	4,240,045		$	3,657,209		$	1,655,250		$	(901,487	)	$	(2,451,327	)	$	(5,118,347	)	$	(7,222,658	)	$	(10,861,979	)	$	(13,399,419	)	$	(18,397,019	)
Less: Capital Expenditures (Schedule 19)		(125,000	)		(137,500	)		(151,250	)		(166,375	)		(183,013	)		(201,314	)		(221,445	)		(243,590	)		(267,949	)		(294,743	)
Add: Depreciation (Schedule 19)		75,000			110,000			121,000			133,100			146,410			161,051			177,156			194,872			214,359			235,795

Net Cash Flow After Tax	$	(6,410,067	)	$	(5,513,313	)	$	(2,513,125	)	$	1,318,955		$	3,640,388		$	7,637,257		$	10,789,698		$	16,244,251		$	20,045,539		$	27,536,580

Terminal Value Calculation
End Year Economic Income (E₀)																															$	27,536,580
Long Term Growth Rate (g)																																3.1	%
Terminal Year Economic Income (E₁ = E₀ x (1+g))																															$	28,390,214
Capitalization Rate (discount rate - g)																																19.3	%
Terminal Value (V = E₁ / capitalization rate)⁴																															$	147,481,630

Discount Rate (Exhibit 21C)²		1.6	%		1.6	%		1.6	%		22.4	%		22.4	%		22.4	%		22.4	%		22.4	%		22.4	%		22.4	%		22.4	%

Present Value Factor³		0.99			0.98			0.97			0.52			0.42			0.35			0.28			0.23			0.19			0.15			0.15


Present Value of Net Cash Flow	$	(6,373,201	)	$	(5,408,324	)	$	(2,427,640	)	$	684,726		$	1,544,652		$	2,648,601		$	3,058,331		$	3,763,318		$	3,795,639		$	4,261,605		$	22,824,495

Fair Market Value of Digital Publishing Division	$	28,372,202

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 20

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

See Endnote 1 to Schedule 4, page 46.

In order to determine the Net cash flow to overall invested capital, we deducted capital expenditures and added back depreciation allocated to the Digital Publishing Division.

Note 2

See Exhibits 21A to 21C, Development of WACC.

See Endnote 2 to Schedule 4, pages 46.

Based on the analysis of cash flow shortfall in the first two years, as well as Platinum’s access to capital, SP&H utilized weights of 80% equity and 20% debt and applied to the After-Tax Equity Discount Rate and the After-Tax Rate of Return on Debt, which resulted a WACC of 22.4%

For years 2008 and 2009, as the Digital Publishing Division was projected to generate negative cash flow, SP&H applied the 1-year Treasury Securities rate as a discount rate as it represents the alternative investment of a prudent investor.

For the remaining years, SP&H utilized the WACC as discussed above.

Note 3

See Endnote 3 to Schedule 4, page 49.

Note 4

See Endnote 4 to Schedule 4, page 49.

Schedule 21

Platinum Studios, Inc.

Method 2: Market Multiplier Method for Digital Publishing Division¹

Date of Value: March 31, 2008

Month		Number of Uniques

January-08			2,852,541
February-08			2,202,324
March-08			2,482,136

Average Number of Uniques			2,512,334

Average Number of Monthly Uniques			2,512,334

Market Multiple (Appendix E)	x		12.0

Fair Market Value of Digital Publishing Division		$	30,148,004

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 21

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

In the market multiplier method, the fair market value of the Intellectual Property in the Digital Publishing Division was determined by multiplying the number of monthly uniques by an appropriate valuation multiplier.

To determine the appropriate market multiple, we searched for user-generated content sites transactions from 2005 through 2007. The transaction details and valuation multiplier were summarized and calculated in Appendix E, page 138. To determine the fair market value of the Intellectual Property in the Digital Publishing Division, we utilized the price per monthly unique multiple. Based on our analysis of the Company as well as the industry, competition, and economic conditions for Platinum, we selected the upper price per monthly unique multiple of 12.

Schedule 22

Platinum Studios, Inc.

Fair Market Value of Intellectual Property in the Digital Publishing Division

Date of Value: March 31, 2008

	Fair Market Value		Weight			Weighted Fair Market Value

Method 1: Discounted Cash Flow Method (Schedule 20)	$	28,372,202		75	%	$	21,279,152

Method 2: Market Multiplier Method (Schedule 21)	$	30,148,004		25	%	$	7,537,001

Fair Market Value of Intellectual Property in Digital Publishing Division (Rounded)						$	28,816,000

SANLI PASTORE & HILL, INC.

Schedule 23

Platinum Studios, Inc.

Projected Cash Flow for Video Network Division

Date of Value: March 31, 2008

	2008		2009					2010					2011					2012					2013				2014				2015				2016				2017
	(1)		(2)					(3)					(4)					(5)					(6)				(7)				(8)				(9)				(10)
Revenues
Revenue from Sale of Advertising	$	0	$	40,575,000		100.0	%	$	60,543,750		100.0	%	$	77,997,672		100.0	%	$	100,577,040		100.0	%	$	121,546,164	100.0	%	$	146,942,887	100.0	%	$	177,701,719	100.0	%	$	210,076,553	100.0	%	$	248,400,497	100.0	%
Total Gross Revenues	$	0	$	40,575,000		100.0	%	$	60,543,750		100.0	%	$	77,997,672		100.0	%	$	100,577,040		100.0	%	$	121,546,164	100.0	%	$	146,942,887	100.0	%	$	177,701,719	100.0	%	$	210,076,553	100.0	%	$	248,400,497	100.0	%

Cost of Sales
Ad Agency/Partner Fee	$	0	$	20,287,500		50.0	%	$	30,771,875		50.8	%	$	39,498,836		50.6	%	$	50,788,520		50.5	%	$	43,191,157	35.5	%	$	52,080,010	35.4	%	$	62,845,602	35.4	%	$	74,176,794	35.3	%	$	87,590,174	35.3	%
License Fee to Creator		0		1,000,000		2.5	%		1,350,000		2.2	%		1,820,000		2.3	%		2,180,000		2.2	%		2,620,000	2.2	%		3,140,000	2.1	%		3,610,000	2.0	%		4,150,000	2.0	%		4,770,000	1.9	%
Web Hosting Fee		0		9,000,000		22.2	%		11,700,000		19.3	%		13,455,000		17.3	%		15,473,250		15.4	%		16,633,744	13.7	%		17,881,275	12.2	%		19,222,370	10.8	%		20,183,489	9.6	%		21,192,663	8.5	%
Total Cost of Sales	$	0	$	30,287,500		74.6	%	$	43,821,875		72.4	%	$	54,773,836		70.2	%	$	68,441,770		68.0	%	$	62,444,901	51.4	%	$	73,101,285	49.7	%	$	85,677,972	48.2	%	$	98,510,282	46.9	%	$	113,552,837	45.7	%

Gross Margin	$	0	$	10,287,500		25.4	%	$	16,721,875		27.6	%	$	23,223,836		29.8	%	$	32,135,270		32.0	%	$	59,101,263	48.6	%	$	73,841,602	50.3	%	$	92,023,747	51.8	%	$	111,566,271	53.1	%	$	134,847,660	54.3	%

Total Selling, General & Administrative	$	0	$	12,172,500		30.0	%	$	17,557,688		29.0	%	$	21,839,348		28.0	%	$	27,155,801		27.0	%	$	30,386,541	25.0	%	$	35,266,293	24.0	%	$	39,094,378	22.0	%	$	46,216,842	22.0	%	$	54,648,109	22.0	%

Other Operating Expenses
3rd Party Production Costs	$	0	$	1,250,000		3.1	%	$	1,739,813		2.9	%	$	2,418,236		3.1	%	$	2,986,362		3.0	%	$	3,700,377	3.0	%	$	4,572,282	3.1	%	$	5,419,625	3.0	%	$	6,423,456	3.1	%	$	7,611,981	3.1	%
Technical & Management Consulting		0		125,000		0.3	%		128,875		0.2	%		132,870		0.2	%		136,989		0.1	%		141,236	0.1	%		145,614	0.1	%		150,128	0.1	%		154,782	0.1	%		159,580	0.1	%
Marketing		0		500,000		1.2	%		515,500		0.9	%		531,481		0.7	%		547,956		0.5	%		564,943	0.5	%		582,456	0.4	%		600,512	0.3	%		619,128	0.3	%		638,321	0.3	%
Software and Technical Support		0		50,000		0.1	%		51,550		0.1	%		53,148		0.1	%		54,796		0.1	%		56,494	0.0	%		58,246	0.0	%		60,051	0.0	%		61,913	0.0	%		63,832	0.0	%
Equipment Maintenance		0		7,500		0.0	%		10,000		0.0	%		15,000		0.0	%		15,465		0.0	%		15,944	0.0	%		16,439	0.0	%		16,948	0.0	%		17,474	0.0	%		18,015	0.0	%
Site & Content Acquisition/Aggregation		0		300,000		0.7	%		309,300		0.5	%		318,888		0.4	%		328,774		0.3	%		338,966	0.3	%		349,474	0.2	%		360,307	0.2	%		371,477	0.2	%		382,993	0.2	%
Web Publishing		0		2,512,500		6.2	%		2,590,388		4.3	%		2,670,690		3.4	%		2,753,481		2.7	%		2,838,839	2.3	%		2,926,843	2.0	%		3,017,575	1.7	%		3,111,120	1.5	%		3,207,564	1.3	%
Translations		0		572,500		1.4	%		590,248		1.0	%		608,545		0.8	%		627,410		0.6	%		646,860	0.5	%		666,912	0.5	%		687,587	0.4	%		708,902	0.3	%		730,878	0.3	%
Depreciation		0		100,000		0.2	%		130,000		0.2	%		149,500		0.2	%		171,925		0.2	%		184,819	0.2	%		198,681	0.1	%		213,582	0.1	%		224,261	0.1	%		235,474	0.1	%
Total Other Operating Expenses	$	0	$	5,417,500		13.4	%	$	6,065,673		10.0	%	$	6,898,358		8.8	%	$	7,623,158		7.6	%	$	8,488,478	7.0	%	$	9,516,946	6.5	%	$	10,526,316	5.9	%	$	11,692,513	5.6	%	$	13,048,640	5.3	%

Operating Income	$	0	$	(7,302,500	)	-18.0	%	$	(6,901,485	)	-11.4	%	$	(5,513,870	)	-7.1	%	$	(2,643,689	)	-2.6	%	$	20,226,244	16.6	%	$	29,058,363	19.8	%	$	42,403,053	23.9	%	$	53,656,916	25.5	%	$	67,150,911	27.0	%

TOTAL COST OF SALES 10%	$	0	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	0		0.0	%	$	2,022,624	1.7	%	$	2,905,836	2.0	%	$	4,240,305	2.4	%	$	5,365,692	2.6	%	$	6,715,091	2.7	%

Contribution Profit from Video Network Division	$	0	$	(7,302,500	)	-18.0	%	$	(6,901,485	)	-11.4	%	$	(5,513,870	)	-7.1	%	$	(2,643,689	)	-2.6	%	$	18,203,619	15.0	%	$	26,152,527	17.8	%	$	38,162,748	21.5	%	$	48,291,225	23.0	%	$	60,435,820	24.3	%

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 23

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1:

Platinum launched a website (www.splastk.com) syndicated on-demand video network featuring free comic book inspired animated content. The customized Java-based player of Splastk, compatible with any web browser, was expected to host original material as well as aggregate content from multiple sources to deliver video simultaneously to a growing network of pop culture sites. Splastk can be syndicated over a large number of affiliate websites. SP&H referred these websites as the Video Network Division. The Video Network Division was expected to generate revenues primarily in advertising sales.

Based on our research and interviews with the management, SP&H developed assumptions of revenues and costs for the Video Network Division as presented in Exhibits 22 to 23, pages 122 and 123. Based on these assumptions, we projected the 10-year income statements for the Video Network Division.

Schedule 24

Platinum Studios, Inc.

Method 1: Discounted Cash Flow Method for Video Network Division¹

Date of Value: March 31, 2008

	2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			Terminal Year - 2018
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)

Contribution Profit from Video Network Division (Schedule 23)	$	0		$	(7,302,500	)	$	(6,901,485	)	$	(5,513,870	)	$	(2,643,689	)	$	18,203,619		$	26,152,527		$	38,162,748		$	48,291,225		$	60,435,820

Less: Taxes (40% tax rate)	$	0		$	2,921,000		$	2,760,594		$	2,205,548		$	1,057,476		$	(7,281,448	)	$	(10,461,011	)	$	(15,265,099	)	$	(19,316,490	)	$	(24,174,328	)
Less: Capital Expenditures (Schedule 23)		0			(125,000	)		(162,500	)		(186,875	)		(214,906	)		(231,024	)		(248,351	)		(266,977	)		(280,326	)		(294,343	)
Add: Depreciation (Schedule 23)		0			100,000			130,000			149,500			171,925			184,819			198,681			213,582			224,261			235,474

Net Cash Flow After Tax	$	0		$	(4,406,500	)	$	(4,173,391	)	$	(3,345,697	)	$	(1,629,195	)	$	10,875,967		$	15,641,846		$	22,844,253		$	28,918,670		$	36,202,623

Terminal Value Calculation
End Year Economic Income (E₀)																															$	36,202,623
Long Term Growth Rate (g)																																3.10	%
Terminal Year Economic Income (E₁ = E₀ x (1+g))																															$	37,324,905
Capitalization Rate (discount rate - g)																																19.3	%
Terminal Value (V = E₁ / capitalization rate)⁴																															$	193,895,609

Discount Rate (Exhibit 21C)²		22.4	%		1.6	%		1.6	%		1.6	%		1.6	%		22.4	%		22.4	%		22.4	%		22.4	%		22.4	%		22.4	%

Present Value Factor³		0.93			0.98			0.97			0.95			0.94			0.35			0.28			0.23			0.19			0.15			0.15

Present Value of Net Cash Flow	$	0		$	(4,322,588	)	$	(4,031,431	)	$	(3,182,562	)	$	(1,526,101	)	$	3,771,786		$	4,433,668		$	5,292,345		$	5,475,774		$	5,602,776		$	30,007,597

Fair Market Value of Video Network Division	$	41,521,264

Note 1: See Endnote 1 to Schedule 4, page 46. In order to determine the Net Cash Flow to invested capital, we deducted capital expenditures and added back depreciation allocated to Video Network Division.

Note 2: See Endnote 2 to Scheudule 20, page 78. For years 2008 through 2011, as the Video Network Division is projected to generate negative cash flow, SP&H applied the 1-year Treasury Securities rate as a discount rate as it represents the alternative investment of a prudent investor.

Note 3: See Endnote 3 to Schedule 4, page 49.

Note 4: See Endnote 4 to Schedule 4, page 49.

SANLI PASTORE & HILL, INC.

Schedule 25

Platinum Studios, Inc.

Method 2: Market Multiplier Method for Video Network Division¹

Date of Value: March 31, 2008

Average Number of Monthly Uniques			7,500,000

Market Multiple (Appendix F)	x		6.0

Fair Market Value of Video Network Division		$	45,000,000

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 25

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

In the market multiplier method, the fair market value of the Intellectual Property in the Video Network Division was determined by multiplying the number of monthly uniques by an appropriate valuation multiplier.

To determine the appropriate market multiple, we searched for general content sites transactions from 2006 through 2007. The transaction details and valuation multiplier were summarized and calculated in Appendix F, page 139. To determine the fair market value of the Intellectual Property in the Video Network Division, we utilized the price per monthly unique multiple. Based on our analysis of the Company as well as the industry, competition, and economic conditions for Platinum, we selected the low quartile price per monthly unique multiple of 6.0.

Schedule 26

Platinum Studios, Inc.

Fair Market Value of Intellectual Property in the Video Network Division

Date of Value: March 31, 2008

	Fair Market Value		Weight			Weighted Fair Market Value

Method 1: Discounted Cash Flow Method (Schedule 24)	$	41,521,264		75	%	$	31,140,948

Method 2: Market Multiplier Method (Schedule 25)	$	45,000,000		25	%	$	11,250,000

Fair Market Value of Intellectual Property in Video Network Division (Rounded)						$	42,391,000

SANLI PASTORE & HILL, INC.

Schedule 27

Platinum Studios, Inc.

Method 1: Revenue Multiplier Method for Print Publishing Division

Date of Value: March 31, 2008

Total Revenues from Print Publishing ¹	$	270,755

Revenue Multiplier ²		3.00

Fair Market Value of Intellectual Property in Print Publishing Division	$	812,000

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 27

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

See Schedule 1, page 15.

Note 2

In the market multiplier method, the fair market value of the Intellectual Property in Print Publishing Division was determined by multiplying revenue by an appropriate valuation multiplier.

To determine the appropriate valuation multiple, we searched for transactions involving companies classified under SIC Code 2721. We obtained guideline company data from Pratt’s Stats and Done Deals from 1995 to the date of this report, which are databases primarily consisting of private-company transactions. SP&H made adjustments to the multiples to match Platinum’s business operations and to include transactions from 2000 to the date of value.

A summary of the revenue multiples obtained from Done Deals follows:

Count	Minimum	Lower Quartile	Median	Mean	Upper Quartile	Maximum

7	1.10	1.44	2.29	1.99	2.48	2.70

A summary of the revenue multiples obtained from Pratt’s Stats follows:

Count	Minimum	Lower Quartile	Median	Mean	Upper Quartile	Maximum

21	0.36	0.73	1.00	1.20	1.54	2.40

Based on our analysis of risks and rewards attributable to Platinum, consideration of future growth, as well as the industry, competition, and economic conditions, we selected a revenue multiple of 3x which falls in the high range of the multiples.

Schedule 28

Platinum Studios, Inc.

Video Games: Projected Cash Flow for Licensed Video Games Division ¹

Date of Value: March 31, 2008

	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
	(1)		(2)		(3)		(4)		(5)		(6)		(7)		(8)		(9)		(10)		(11)
Assumptions:

Video Game Projects per Year		1		2		1		1		1		1		2		2		2		2		2

Projected Cash Flows:

Total Gross Receipts	$	0	$	42,500,000	$	91,500,000	$	56,500,000	$	101,000,000	$	150,000,000	$	100,000,000	$	142,500,000	$	149,000,000	$	150,000,000	$	200,000,000

Pre-Tax Relief from Royalty Rate (% of Total Gross Receipts) ²	$	0	$	4,250,000	$	9,150,000	$	5,650,000	$	10,100,000	$	15,000,000	$	10,000,000	$	14,250,000	$	14,900,000	$	15,000,000	$	20,000,000

Source: Exhibits 24.

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 28

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

The Licensed Video Games Division model assumes Platinum licenses video game rights to a production studio for a royalty fee. The production studio arranges and pays for all cost associated with producing and distributing a video game.

To estimate the future cash flows generated by the Licensed Video Games Division, we estimated each video games revenues based on the number of units a video game would sell across all gaming consul, i.e. PlayStation 2, PlayStation 3, Xbox 360, Wii, etc., over its ultimate shelf life of 3 years. Our assumptions of a video game’s sales and their timing are presented in Exhibit 24, page 124.

We based our assumed unit sales on industry average required expected unit sales to green light production of a video game.

Note 2

Media and Entertainment royalty rates based on license agreements can range from 2% to 50%.³³ Based on our research we determined that it is reasonable to apply a royalty rate of 10% to all gross revenues generated by video games.

³³ RoyaltySource.com, an online database of historical royalty rates.

Schedule 29

Platinum Studios, Inc.

Method 1: Discounted Royalty Cash Flow Method for Licensed Video Games Division¹

Date of Value: March 31, 2008

	Apr 1 - Dec 31, 2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			2018			Terminal Year - 2019
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)			(12)

Pre-Tax Relief from Royalty Rate (% of Net Revenues)	$	0		$	4,250,000		$	9,150,000		$	5,650,000		$	10,100,000		$	15,000,000		$	10,000,000		$	14,250,000		$	14,900,000		$	15,000,000		$	20,000,000

Less:Overhead Allocation	$	0		$	(60,000	)	$	(61,860	)	$	(63,778	)	$	(65,755	)	$	(67,793	)	$	(69,895	)	$	(72,061	)	$	(74,295	)	$	(76,599	)	$	(78,973	)

Taxable Income	$	0		$	4,190,000		$	9,088,140		$	5,586,222		$	10,034,245		$	14,932,207		$	9,930,105		$	14,177,939		$	14,825,705		$	14,923,401		$	19,921,027

Less: Taxes (40%)	$	0		$	(1,676,000	)	$	(3,635,256	)	$	(2,234,489	)	$	(4,013,698	)	$	(5,972,883	)	$	(3,972,042	)	$	(5,671,175	)	$	(5,930,282	)	$	(5,969,361	)	$	(7,968,411	)

After-Tax Royalty	$	0		$	2,514,000		$	5,452,884		$	3,351,733		$	6,020,547		$	8,959,324		$	5,958,063		$	8,506,763		$	8,895,423		$	8,954,041		$	11,952,616

Terminal Value Calculation
End Year Economic Income (E₀)																																		$	11,952,616
Long Term Growth Rate (g)																																			3.1	%
Terminal Year Economic Income (E₁ = E₀ x (1+g))																																		$	12,323,147
Capitalization Rate (discount rate - g)																																			18.9	%
Terminal Value (V = E₁ / capitalization rate)⁴																																		$	65,168,596

Discount Rate (Exhibits 6A - 6C plus 5% risk)²		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%

Present Value Factor³		0.93			0.78			0.64			0.52			0.43			0.35			0.29			0.24			0.19			0.16			0.13			0.13

Present Value of Net Cash Flow to MVIC	$	0		$	1,960,526		$	3,485,294		$	1,755,854		$	2,585,002		$	3,152,869		$	1,718,469		$	2,010,975		$	1,723,514		$	1,421,914		$	1,555,690		$	8,482,002
Fair Market Value of Licensed Video Games Division	$	29,852,000

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 29

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

See Endnote 1 to Schedule 4, page 46.

Note 2

See Endnote 2 to Schedule 4, page 46.

In addition, we have added 5% of excess risk bourn by this division. The risk above and beyond the risk of the Film Division is due to the following factors:

a)	All license agreements are still in the conceptualization stage; and

b)	Platinum does not expect to sign any license agreements before 2010.

Based on the above, we determined the discount rate for the Licensed Video Games Division to be 22.0%.

Note 3

See Endnote 3 to Schedule 4, page 49.

Note 4

See Endnote 4 to Schedule 4, page 49.

Schedule 30

Platinum Studios, Inc.

Method 1: Discounted Cash Flow Method for Licensing and Merchandising Division¹

Date of Value: March 31, 2008

	Apr 1 - Dec 31, 2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			2018			Terminal Year - 2019
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)			(12)

Pre-Tax Revenue from Licensing and Merchandising	$	0		$	2,000,000		$	2,200,000		$	2,420,000		$	2,662,000		$	2,928,200		$	3,221,020		$	3,543,122		$	3,897,434		$	4,287,178		$	4,715,895

Less: Overhead Allocation	$	0		$	(50,000	)	$	(51,550	)	$	(53,148	)	$	(54,796	)	$	(56,494	)	$	(58,246	)	$	(60,051	)	$	(61,913	)	$	(63,832	)	$	(65,811	)

Taxable Income	$	0		$	1,950,000		$	2,148,450		$	2,366,852		$	2,607,204		$	2,871,706		$	3,162,774		$	3,483,071		$	3,835,521		$	4,223,345		$	4,650,084

Less: Taxes (40%)	$	0		$	(780,000	)	$	(859,380	)	$	(946,741	)	$	(1,042,882	)	$	(1,148,682	)	$	(1,265,110	)	$	(1,393,228	)	$	(1,534,209	)	$	(1,689,338	)	$	(1,860,034	)

After-Tax Income	$	0		$	1,170,000		$	1,289,070		$	1,420,111		$	1,564,323		$	1,723,023		$	1,897,665		$	2,089,842		$	2,301,313		$	2,534,007		$	2,790,051

Terminal Value Calculation
End Year Economic Income (E₀)																																		$	2,790,051
Long Term Growth Rate (g)																																			3.1	%
Terminal Year Economic Income (E₁ = E₀ x (1+g))																																		$	2,876,542
Capitalization Rate (discount rate - g)																																			18.9	%
Terminal Value (V = E₁ / capitalization rate)⁴																																		$	15,212,041

Discount Rate (Exhibits 6A - 6C plus 5% risk)²		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%		22.0	%

Present Value Factor³		0.93			0.78			0.64			0.52			0.43			0.35			0.29			0.24			0.19			0.16			0.13			0.13

Present Value of Net Cash Flow to MVIC	$	0		$	912,417		$	823,929		$	743,946		$	671,663		$	606,348		$	547,339		$	494,033		$	445,886		$	402,404		$	363,138		$	1,979,919

Fair Market Value of Licensing and Merchandising Division	$	7,991,000

Note 1: See Endnote 1 to Schedule 4, page 46.

Note 2: See Endnote 2 to Schedule 4, page 46.

Note 3: See Endnote 3 to Schedule 4, page 49.

Note 4: See Endnote 4 to Schedule 4, page 49.

SANLI PASTORE & HILL, INC.

Schedule 31

Platinum Studios, Inc.

Conclusion of Fair Market Value and Fair Value of Intellectual Property

Date of Value: March 31, 2008

	Fair Market Value and Fair Value of Intellectual Property


Film Entertainment

Licensed Films (Schedule 6)	$	8,705,000

Joint Venture Films (Schedule 10)		18,457,000

Film Fund Films (Schedule 14)		23,565,000

Direct to DVD Films (Schedule 18)		9,314,000

Film Entertainment Total	$	60,041,000

Digital Publishing (Schedule 22)	$	28,816,000

Video Network (Schedule 26)	$	42,391,000

Print Publishing (Schedule 27)	$	812,000

Licensed Video Games (Schedule 29)	$	29,852,000

Licensing and Merchandising (Schedule 30)	$	7,991,000

Comic Book Challenge¹	$	500,000

Total Market Value of Invested Capital	$	170,403,000

Less:
Net Working Capital²	$	(1,598,000	)
Property and Equipment³	$	(257,000	)
Existing Debt⁴	$	(4,662,000	)
Projected Debt Funding⁵	$	(13,848,000	)

Total Fair Market Value and Fair Value of Intellectual Property	$	150,038,000

Note 1: See Endnote 1 to Schedule 31, page 93.
Note 2: Per Platinum form 10-K filed on March 31, 2008.
Note 3: Per Platinum form 10-K filed on March 31, 2008.
Note 4: See Endnote 4 to Schedule 31, page 95.
Note 5: See Endnote 5 to Schedule 31, page 95.

SANLI PASTORE & HILL, INC.

Endnotes to Schedule 31

Platinum Studios, Inc.

Date of Value: March 31, 2008

Note 1

The Cost Approach

Since the Comic Book Challenge was in early stage development, the amounts, if any, of future revenues remained uncertain and projected revenues and profits could not be made, the cost approach is deemed appropriate to determine the fair market value of the Comic Book Challenge. The cost approach also is effective at establishing a maximum price for the asset in a proposed transaction as an investor will pay no more for an asset than the cost to develop or obtain an asset of similar utility.³⁴

As stated in Valuing Intangible Assets:³⁵

Generally, cost approach methods may be applicable when the subject intangible asset is newer and when it is a fungible property. The term fungible means that the subject intangible asset could be exchanged or substituted for another intangible. In addition, cost approach methods may be more applicable when estimating the value of the intangible asset to the current owner. These methods may also be applicable when estimating the value of an intangible asset under the premise of value in continued use.

There are two different types of cost quantified in cost approach valuation analyses. The types of costs relate to the two fundamental cost approach valuation methods are reproduction cost and replacement cost.³⁶

Reproduction cost is the estimated cost to construct, at current market price as of the date of the analysis, an exact duplicate or replica of the subject intangible asset, using the same materials, production standards, design layout, and quality of workmanship as the subject intangible asset, The reproduction intangible asset will include the same inadequacies, superadequacies, and obsolescence as the subject intangible asset.

Replacement cost is the estimated cost to construct, at current prices as of the date of the analysis, an intangible asset with equivalent utility to the subject intangible, using modern materials, production standards, design, layout, and quality of workmanship, The replacement intangible asset will exclude all curable inadequacies, superadequacies, and obsolescence that present in the subject intangible asset.

³⁴ Drews, David, IPMetrics LLC (2001). The cost approach to IP valuation: Its uses and limitations.

³⁵ Reilly, Robert and Robert Schweihs. Valuing Intangible Assets, Page 122.

³⁶ Ibid.

The selection of the reproduction cost method versus the replacement cost method should not materially different as the allowances for obsolescence would need to be adjusted. In addition, historical costs utilized under our approach were adjusted to present value to obtain replacement cost values.

Regardless of the type of cost being estimated, five components of cost are generally included in the analysis. The five components of cost are:

Material

Labor

Overhead

4.	Developer’s profit

5.	Entrepreneurial incentive

As stated in Valuing Intangible Assets:³⁷

Material costs include expenditures and accruals related to the tangible elements of the intangible asset development process. Typically, material costs do not represent a significant percentage of the overall cost of intangible asset development because there are typically few tangible manifestations of an intangible asset.

Labor costs include expenditures and accruals related to the human capital efforts associated with intangible asset development. Intangible asset labor costs can be either direct or indirect. Direct labor costs relate to the individuals who participated hands-on in the development process Labor costs typically include all salaries and wages to employees and all monetary compensation to contractors. Labor costs should be estimated at (or trended to) current costs as of the valuation date.

The overhead cost component has several subcomponents. The categories of overhead cost typically include employment-related taxes, employment-related perquisites, and fringe benefits, management and supervisory efforts, support and secretarial efforts, and utility and operating expenses.

The developer’s profit is a cost component that is frequently overlooked. From the perspective of the developer of any intangible asset, first, the developer expects a return of all of the material, labor, and overhead costs related to the development process; and second, the developer expects a return on all of the material, labor, and overhead costs related to the development process.

Entrepreneurial incentive is another cost component that is frequently overlooked. Nonetheless, entrepreneurial incentive is an integral component of the cost approach analysis. The entrepreneurial incentive is the amount of economic benefit required to motivate the intangible asset owner to enter into the development process. From the perspective of the intangible asset owner, entrepreneurial incentive is often perceived as an opportunity cost.

³⁷ Reilly, Robert and Robert Schweihs. Valuing Intangible Assets. Page 124-125.

Based upon the cost component information provided by the management, we concluded the fair market value of the Comic Book Challenge was $500,000.

Note 2

Per Platinum’s Form 10-K filed on March 31, 2008. Short term notes payable and current portion of capital lease payable were excluded from our calculation of working capital, as these are financing liabilities included in Existing Debt, Note 4 below, and are not part of the company’ daily operations.

Note 3

Per Platinum’s Form 10-K filed on March 31, 2008.

Note 4

According to Platinum’s Form 10-K filed on March 31, 2008, Platinum’s existing debt consists of short term notes payable, long term notes payable to shareholder, accrued interest due to shareholder, and current and non-current portion of capital leases payable, with a total value of $4,662,000.

Note 5

As presented in the DCF method of each division, Platinum would incur negative cash flow in 2008 and 2009. In order to execute Platinum’s business plan, additional financing maybe required to cover the negative cash flow for at least the 2008 period. For the purposes of our valuation, we estimated the expected debt funding by summing up the total negative cash flow of the following divisions in 2008. As the Film Fund Division is funded from a separate business entity, we excluded the negative cash flow of Film Fund Division from our calculation of projected debt funding. The calculation of expected debt funding is as follows:

	Negative Cash Flow of 2008
Film Entertainment

Licensed Films	$	112,500

Joint Venture Films		7,325,296

Direct to DVD Films		0

Film Entertainment Total	$	7,437,796

Digital Publishing	$	6,410,067

Video Network	$	0

Print Publishing	$	0

Licensed Video Games	$	0

Licensing and Merchandising	$	0

Comic Book Challenge	$	0

Total Projected Debt Funding (Rounded)	$	13,848,000

Exhibit 1: Ultimate Revenues and Costs

Platinum Studios, Inc.

Film Entertainment: Licensed Film Division Assumptions

		Action				Comedy				Thriller
		High Budget				High Budget				High Budget

Projected Budget		$	65,000,000			$	50,000,000			$	65,000,000
Implied Domestic Box Office	Average of Median and Mean Multiple for High Budget Films, Based on Box Office Mojo data	$	94,250,000	1.45		$	50,500,000	1.01		$	76,050,000	1.17
Implied International Box Office	Average of Median and Mean Multiple for High Budget Films, Based on Box Office Mojo data	$	100,750,000	1.55		$	60,000,000	1.20		$	69,550,000	1.07


Gross Receipts	Notes
Domestic Theatrical	Based on Industry Estimates, Baselineresearch and Vogel 2007	$	47,125,000	50.0	%	$	25,250,000	50.0	%	$	38,025,000	50.0	%
International Theatrical	Based on Industry Estimates, Baselineresearch and Vogel 2007		40,300,000	40.0	%		24,000,000	40.0	%		27,820,000	40.0	%
Domestic Home Video	% of Domestic Box Office, Based on Historical Actual of Marvel PG-13 Films		73,515,000	78.0	%		39,390,000	78.0	%		59,319,000	78.0	%
International Home Video	% of Domestic Home Video, Based on Historical Actual of Marvel PG-13 Films		44,109,000	60.0	%		23,634,000	60.0	%		35,591,400	60.0	%
Domestic Television
PPV	% of Domestic Theatrical, cap of $7.5M, Based on Industry Estimates, Marvel		5,890,625	12.5	%		3,156,250	12.5	%		4,753,125	12.5	%
Pay TV	% of Domestic Theatrical, cap of $17.5M, Based on Industry Estimates, Marvel		21,206,250	45.0	%		11,362,500	45.0	%		17,111,250	45.0	%
Network TV	% of Domestic Theatrical, cap of $40M, Based on Industry Estimates, Marvel		8,482,500	18.0	%		4,545,000	18.0	%		6,844,500	18.0	%
Syndicated TV	% of Domestic Theatrical		1,649,375	3.5	%		883,750	3.5	%		1,330,875	3.5	%
International Television
Pay TV	% of International Theatrical, cap of $30M, Based on Industry Estimates, Marvel		13,299,000	33.0	%		7,920,000	33.0	%		9,180,600	33.0	%
Network TV	% of International Theatrical, cap of $30M, Based on Industry Estimates, Marvel		20,150,000	50.0	%		12,000,000	50.0	%		13,910,000	50.0	%
Domestic Merchandising	% of Domestic Box Office less 35% Distribution Fees based on SNL Kagan 2007; Platinum collects 25% of Net		811,728	0.9	%		217,466	0.4	%		327,490	0.4	%
International Merchandising	% of International Box Office less 35% Distribution Fees based on SNL Kagan 2007; Platinum collects 25% of Net		867,709	0.9	%		258,375	0.4	%		299,500	0.4	%
Total Gross Receipts		$	277,406,188			$	152,617,341			$	214,512,740

Distribution Costs
Domestic Theatrical	% of Domestic Theatrical, Vogel 2007	$	9,425,000	20.0	%	$	5,050,000	20.0	%	$	7,605,000	20.0	%
International Theatrical	% of International Theatrical, Vogel 2007		8,060,000	20.0	%		4,800,000	20.0	%		5,564,000	20.0	%
Domestic Home Video	% of Domestic Home Video Revenue, Based on Industry Estimates, Vogel 2007		14,703,000	20.0	%		7,878,000	20.0	%		11,863,800	20.0	%
International Home Video	% of International Home Video Revenue, Based on Industry Estimates, Vogel 2007		8,821,800	20.0	%		4,726,800	20.0	%		7,118,280	20.0	%
Domestic Television Cost	% of Television Revenue, Based on Industry Estimates, Marvel		7,445,750	20.0	%		3,989,500	20.0	%		6,007,950	20.0	%
International Television Cost	% of Television Revenue, Based on Industry Estimates, Marvel		6,689,800	20.0	%		3,984,000	20.0	%		4,618,120	20.0	%
Total Distribution Costs		$	55,145,350			$	30,428,300			$	42,777,150

Publicity Expenses
Domestic Theatrical
Advertising	% of Budget, 2006 Average Ad / Negative Costs, MPAA	$	30,336,626	46.7	%	$	23,335,866	46.7	%	$	30,336,626	46.7	%
Publicity	% of Budget, 2006 Average Print / Negative Costs, MPAA		3,783,435	5.8	%		2,910,334	5.8	%		3,783,435	5.8	%
International Theatrical
Advertising	% of Domestic Advertising		15,168,313	50.0	%		11,667,933	50.0	%		15,168,313	50.0	%
Publicity	% of Domestic Publicity		1,891,717	50.0	%		1,455,167	50.0	%		1,891,717	50.0	%
Total Publicity Expense		$	51,180,091			$	39,369,301			$	51,180,091

Negative Costs	Same as Projected Budget	$	65,000,000			$	50,000,000			$	65,000,000

Contribution Profit	% of Total Gross Receipts	$	106,080,746	38.2	%	$	32,819,740	21.5	%	$	55,555,499	25.9	%

Revenue from Theatrical Rights		$	1,250,000			$	1,250,000			$	1,250,000

= Inputs/Assumptions

SANLI PASTORE & HILL, INC.

Exhibit 2: Time of Cash Flows from Ultimates

Platinum Studios, Inc.

Film Entertainment: Licensed, Joint Venture, and Film Fund Film Divisions

Year of Cash Flow	0			1			2			3			4			5			6			7			8			9			10			Total

Gross Receipts
Domestic Theatrical		0.0	%		100	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
International Theatrical		0.0	%		85.0	%		15.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Domestic Home Video		0.0	%		75.0	%		7.0	%		6.0	%		4.0	%		3.0	%		1.0	%		1.0	%		1.0	%		1.0	%		1.0	%		100.0	%
International Home Video		0.0	%		50.0	%		35.0	%		5.0	%		3.0	%		2.0	%		1.0	%		1.0	%		1.0	%		1.0	%		1.0	%		100.0	%
Domestic Television
PPV		0.0	%		3.0	%		97.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Pay TV		0.0	%		3.0	%		75.0	%		22.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Network TV		0.0	%		0.0	%		0.0	%		15.0	%		50.0	%		15.0	%		15.0	%		5.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Syndicated TV		0.0	%		0.0	%		0.0	%		0.0	%		20.0	%		20.0	%		20.0	%		10.0	%		10.0	%		10.0	%		10.0	%		100.0	%
International Television
Pay TV		0.0	%		0.0	%		15.0	%		55.0	%		30.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Syndicated TV		0.0	%		0.0	%		0.0	%		0.0	%		20.0	%		20.0	%		20.0	%		10.0	%		10.0	%		10.0	%		10.0	%		100.0	%
Domestic Merchandising		0.0	%		75.0	%		7.0	%		6.0	%		4.0	%		3.0	%		2.0	%		1.0	%		1.0	%		0.5	%		0.5	%		100.0	%
International Merchandising		0.0	%		75.0	%		7.0	%		6.0	%		4.0	%		3.0	%		2.0	%		1.0	%		1.0	%		0.5	%		0.5	%		100.0	%
Total Gross Receipts		0.0	%		38.8	%		21.5	%		9.6	%		11.3	%		5.5	%		5.1	%		2.4	%		2.0	%		1.9	%		1.9	%		100.0	%

Distribution Costs
Domestic Theatrical		0.0	%		100.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
International Theatrical		0.0	%		85.0	%		15.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Domestic Home Video		0.0	%		70.0	%		5.0	%		4.0	%		3.0	%		3.0	%		3.0	%		3.0	%		3.0	%		3.0	%		3.0	%		100.0	%
International Home Video		0.0	%		45.0	%		33.0	%		5.0	%		4.0	%		3.0	%		2.0	%		2.0	%		2.0	%		2.0	%		2.0	%		100.0	%
Domestic Television Cost		0.0	%		5.0	%		50.0	%		20.0	%		10.0	%		5.0	%		2.0	%		2.0	%		2.0	%		2.0	%		2.0	%		100.0	%
International Television Cost		0.0	%		5.0	%		50.0	%		20.0	%		10.0	%		5.0	%		2.0	%		2.0	%		2.0	%		2.0	%		2.0	%		100.0	%
Total Distribution Costs		0.0	%		51.7	%		25.5	%		8.2	%		4.5	%		2.7	%		1.5	%		1.5	%		1.5	%		1.5	%		1.5	%		100.0	%

Publicity Expenses
Domestic Theatrical
Advertising		10.0	%		90.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Prints		0.0	%		100.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
International Theatrical
Advertising		10.0	%		90.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Prints		0.0	%		85.0	%		15.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Total Publicity Expenses		5.0	%		91.3	%		3.8	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%

Negative Costs		100.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%

Source: Duff & Phelps March 22, 2006 report and SP&H research.

SANLI PASTORE & HILL, INC.

Exhibit 3: Time of Cash Flow from High Budget Action Film

Platinum Studios, Inc.

Film Entertainment: Licensed Film Division: Action - High Budget Films

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Domestic Theatrical	$	0		$	47,125,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	47,125,000
International Theatrical		0			34,255,000		6,045,000		0		0		0		0		0		0		0		0		40,300,000
Domestic Home Video		0			55,136,250		5,146,050		4,410,900		2,940,600		2,205,450		735,150		735,150		735,150		735,150		735,150		73,515,000
International Home Video		0			22,054,500		15,438,150		2,205,450		1,323,270		882,180		441,090		441,090		441,090		441,090		441,090		44,109,000
Domestic Television
PPV		0			176,719		5,713,906		0		0		0		0		0		0		0		0		5,890,625
Pay TV		0			636,188		15,904,688		4,665,375		0		0		0		0		0		0		0		21,206,250
Network TV		0			0		0		1,272,375		4,241,250		1,272,375		1,272,375		424,125		0		0		0		8,482,500
Syndicated TV		0			0		0		0		329,875		329,875		329,875		164,938		164,938		164,938		164,938		1,649,375
International Television
Pay TV		0			0		1,994,850		7,314,450		3,989,700		0		0		0		0		0		0		13,299,000
Syndicated TV		0			0		0		0		4,030,000		4,030,000		4,030,000		2,015,000		2,015,000		2,015,000		2,015,000		20,150,000
Domestic Merchandising		0			608,796		56,821		48,704		32,469		24,352		16,235		8,117		8,117		4,059		4,059		811,728
International Merchandising		0			650,782		60,740		52,063		34,708		26,031		17,354		8,677		8,677		4,339		4,339		867,709
Total Gross Receipts	$	0		$	160,643,234	$	50,360,204	$	19,969,316	$	16,921,873	$	8,770,263	$	6,842,079	$	3,797,097	$	3,372,972	$	3,364,575	$	3,364,575	$	277,406,188

Distribution Costs
Domestic Theatrical	$	0		$	9,425,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	9,425,000
International Theatrical		0			6,851,000		1,209,000		0		0		0		0		0		0		0		0		8,060,000
Domestic Home Video		0			10,292,100		735,150		588,120		441,090		441,090		441,090		441,090		441,090		441,090		441,090		14,703,000
International Home Video		0			3,969,810		2,911,194		441,090		352,872		264,654		176,436		176,436		176,436		176,436		176,436		8,821,800
Domestic Television Cost		0			372,288		3,722,875		1,489,150		744,575		372,288		148,915		148,915		148,915		148,915		148,915		7,445,750
International Television Cost		0			334,490		3,344,900		1,337,960		668,980		334,490		133,796		133,796		133,796		133,796		133,796		6,689,800
Total Distribution Costs	$	0		$	31,244,688	$	11,923,119	$	3,856,320	$	2,207,517	$	1,412,522	$	900,237	$	900,237	$	900,237	$	900,237	$	900,237	$	55,145,350

Publicity Expenses
Domestic Theatrical
Advertising	$	3,033,663		$	27,302,964	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	30,336,626
Prints		0			3,783,435		0		0		0		0		0		0		0		0		0		3,783,435
International Theatrical
Advertising		1,516,831			13,651,482		0		0		0		0		0		0		0		0		0		15,168,313
Prints		0			1,607,960		283,758		0		0		0		0		0		0		0		0		1,891,717
Total Publicity Expenses	$	4,550,494		$	46,345,840	$	283,758	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,180,091

Negative Costs	$	65,000,000		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	65,000,000

Contribution Profit	$	(69,550,494	)	$	83,052,707	$	38,153,328	$	16,112,996	$	14,714,356	$	7,357,742	$	5,941,842	$	2,896,860	$	2,472,735	$	2,464,338	$	2,464,338	$	106,080,746

Source: Exhibit 1 (Ultimate Revenues and Costs) multiplied by Exhibit 2 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

Exhibit 4: Time of Cash Flow from High Budget Comedy Film

Platinum Studios, Inc.

Film Entertainment: Licensed Film Division: Comedy - High Budget Films

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Domestic Theatrical	$	0		$	25,250,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	25,250,000
International Theatrical		0			20,400,000		3,600,000		0		0		0		0		0		0		0		0		24,000,000
Domestic Home Video		0			29,542,500		2,757,300		2,363,400		1,575,600		1,181,700		393,900		393,900		393,900		393,900		393,900		39,390,000
International Home Video		0			11,817,000		8,271,900		1,181,700		709,020		472,680		236,340		236,340		236,340		236,340		236,340		23,634,000
Domestic Television
PPV		0			94,688		3,061,563		0		0		0		0		0		0		0		0		3,156,250
Pay TV		0			340,875		8,521,875		2,499,750		0		0		0		0		0		0		0		11,362,500
Network TV		0			0		0		681,750		2,272,500		681,750		681,750		227,250		0		0		0		4,545,000
Syndicated TV		0			0		0		0		176,750		176,750		176,750		88,375		88,375		88,375		88,375		883,750
International Television
Pay TV		0			0		1,188,000		4,356,000		2,376,000		0		0		0		0		0		0		7,920,000
Syndicated TV		0			0		0		0		2,400,000		2,400,000		2,400,000		1,200,000		1,200,000		1,200,000		1,200,000		12,000,000
Domestic Merchandising		0			163,099		15,223		13,048		8,699		6,524		4,349		2,175		2,175		1,087		1,087		217,466
International Merchandising		0			193,781		18,086		15,503		10,335		7,751		5,168		2,584		2,584		1,292		1,292		258,375
Total Gross Receipts	$	0		$	87,801,943	$	27,433,946	$	11,111,150	$	9,528,904	$	4,927,155	$	3,898,257	$	2,150,623	$	1,923,373	$	1,920,994	$	1,920,994	$	152,617,341

Distribution Costs
Domestic Theatrical	$	0		$	5,050,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	5,050,000
International Theatrical		0			4,080,000		720,000		0		0		0		0		0		0		0		0		4,800,000
Domestic Home Video		0			5,514,600		393,900		315,120		236,340		236,340		236,340		236,340		236,340		236,340		236,340		7,878,000
International Home Video		0			2,127,060		1,559,844		236,340		189,072		141,804		94,536		94,536		94,536		94,536		94,536		4,726,800
Domestic Television Cost		0			199,475		1,994,750		797,900		398,950		199,475		79,790		79,790		79,790		79,790		79,790		3,989,500
International Television Cost		0			199,200		1,992,000		796,800		398,400		199,200		79,680		79,680		79,680		79,680		79,680		3,984,000
Total Distribution Costs	$	0		$	17,170,335	$	6,660,494	$	2,146,160	$	1,222,762	$	776,819	$	490,346	$	490,346	$	490,346	$	490,346	$	490,346	$	30,428,300

Publicity Expenses
Domestic Theatrical
Advertising	$	2,333,587		$	21,002,280	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	23,335,866
Prints		0			2,910,334		0		0		0		0		0		0		0		0		0		2,910,334
International Theatrical
Advertising		1,166,793			10,501,140		0		0		0		0		0		0		0		0		0		11,667,933
Prints		0			1,236,892		218,275		0		0		0		0		0		0		0		0		1,455,167
Total Publicity Expenses	$	3,500,380		$	35,650,646	$	218,275	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	39,369,301

Negative Costs	$	50,000,000		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	50,000,000

Contribution Profit	$	(53,500,380	)	$	34,980,962	$	20,555,177	$	8,964,990	$	8,306,142	$	4,150,336	$	3,407,911	$	1,660,277	$	1,433,027	$	1,430,648	$	1,430,648	$	32,819,740

Source: Exhibit 1 (Ultimate Revenues and Costs) multiplied by Exhibit 2 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

100

Exhibit 5: Time of Cash Flow from High Budget Thriller Film

Platinum Studios, Inc.

Film Entertainment: Licensed Film Division: Thriller - High Budget Films

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Domestic Theatrical	$	0		$	38,025,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	38,025,000
International Theatrical		0			23,647,000		4,173,000		0		0		0		0		0		0		0		0		27,820,000
Domestic Home Video		0			44,489,250		4,152,330		3,559,140		2,372,760		1,779,570		593,190		593,190		593,190		593,190		593,190		59,319,000
International Home Video		0			17,795,700		12,456,990		1,779,570		1,067,742		711,828		355,914		355,914		355,914		355,914		355,914		35,591,400
Domestic Television
PPV		0			142,594		4,610,531		0		0		0		0		0		0		0		0		4,753,125
Pay TV		0			513,338		12,833,438		3,764,475		0		0		0		0		0		0		0		17,111,250
Network TV		0			0		0		1,026,675		3,422,250		1,026,675		1,026,675		342,225		0		0		0		6,844,500
Syndicated TV		0			0		0		0		266,175		266,175		266,175		133,088		133,088		133,088		133,088		1,330,875
International Television
Pay TV		0			0		1,377,090		5,049,330		2,754,180		0		0		0		0		0		0		9,180,600
Syndicated TV		0			0		0		0		2,782,000		2,782,000		2,782,000		1,391,000		1,391,000		1,391,000		1,391,000		13,910,000
Domestic Merchandising		0			245,618		22,924		19,649		13,100		9,825		6,550		3,275		3,275		1,637		1,637		327,490
International Merchandising		0			224,625		20,965		17,970		11,980		8,985		5,990		2,995		2,995		1,497		1,497		299,500
Total Gross Receipts	$	0		$	125,083,124	$	39,647,268	$	15,216,809	$	12,690,187	$	6,585,058	$	5,036,494	$	2,821,686	$	2,479,461	$	2,476,326	$	2,476,326	$	214,512,740

Distribution Costs
Domestic Theatrical	$	0		$	7,605,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	7,605,000
International Theatrical		0			4,729,400		834,600		0		0		0		0		0		0		0		0		5,564,000
Domestic Home Video		0			8,304,660		593,190		474,552		355,914		355,914		355,914		355,914		355,914		355,914		355,914		11,863,800
International Home Video		0			3,203,226		2,349,032		355,914		284,731		213,548		142,366		142,366		142,366		142,366		142,366		7,118,280
Domestic Television Cost		0			300,398		3,003,975		1,201,590		600,795		300,398		120,159		120,159		120,159		120,159		120,159		6,007,950
International Television Cost		0			230,906		2,309,060		923,624		461,812		230,906		92,362		92,362		92,362		92,362		92,362		4,618,120
Total Distribution Costs	$	0		$	24,373,590	$	9,089,857	$	2,955,680	$	1,703,252	$	1,100,766	$	710,801	$	710,801	$	710,801	$	710,801	$	710,801	$	42,777,150

Publicity Expenses
Domestic Theatrical
Advertising	$	3,033,663		$	27,302,964	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	30,336,626
Prints		0			3,783,435		0		0		0		0		0		0		0		0		0		3,783,435
International Theatrical
Advertising		1,516,831			13,651,482		0		0		0		0		0		0		0		0		0		15,168,313
Prints		0			1,607,960		283,758		0		0		0		0		0		0		0		0		1,891,717
Total Publicity Expenses	$	4,550,494		$	46,345,840	$	283,758	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	51,180,091

Negative Costs	$	65,000,000		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	65,000,000

Contribution Profit	$	(69,550,494	)	$	54,363,695	$	30,273,653	$	12,261,129	$	10,986,934	$	5,484,292	$	4,325,693	$	2,110,885	$	1,768,660	$	1,765,525	$	1,765,525	$	55,555,499

Source: Exhibit 1 (Ultimate Revenues and Costs) multiplied by Exhibit 2 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

101

Exhibit 6A

Platinum Studios, Inc.

Development of Equity Discount Rate

Date of Value: March 31, 2008

						Sources:

						Federal Reserve Statistical
	Long-Term Risk-Free Rate			4.32	%	Release dated March 28, 2008
	(20-Year Government Treasury Bonds)

Add:

	Equity Risk Premium	6.30	%			Ibbotson Associates' Stocks, Bonds, Bills & Inflation, 2007 Yearbook

	Size Premium	4.35	%			Ibid.

	Industry Premium Adjustment (SIC 78) *	8.45	%			Ibbotson Associates' Stocks, Bonds, Bills & Inflation, 2007 Yearbook

	Adjusted Equity Risk Premium	19.10	%	19.10	%

	Specific Company Risk			7.00	%	Per company research and analysis

After-Tax Equity Discount Rate:				30.42	%

After-Tax Equity Discount Rate (rounded):				30.4	%

* SIC 78 Motion Pictures was most comparable to Platinum Studios, Inc. in regard to business operations and risk factors.

SANLI PASTORE & HILL, INC.

102

Exhibit 6B

Platinum Studios, Inc.

Development of Rate of Return on Debt

Date of Value: March 31, 2008

Sources:

Bank Prime Rate:

5.25

Federal Reserve Statistical Release

Rate as of March 28, 2008

Corporate Bonds:

Moody's Seasonal

Aaa

5.52

Ibid.

Baa

6.94

Ibid.

Weighted Average Interest Rate on Gatekeeper's Interest Bearing Debt

8.25

Per Management and SP&H Analysis

After-Tax Rate of Return on Debt (rounded):

5.0

(Rate of Return on Debt x (1 - tax rate of 40%))

SANLI PASTORE & HILL, INC.

103

Exhibit 6C

Platinum Studios, Inc.

Development of Weighted Average Cost of Capital (WACC)

Date of Value: March 31, 2008

	Rate			Weight ¹			WACC

After-Tax Equity Discount Rate: (Exhibit 6A)		30.4	%		47	%		14.4	%

After-Tax Rate of Return on Debt: (Exhibit 6B)		5.0	%		53	%		2.6	%

After-Tax WACC					100	%		17.0	%

Less:
Long-Term Growth Rate								3.1	%

After-Tax Capitalization Rate								13.9	%

Note 1: Per average Debt to Equity ratio of a perpetual slate financing as defined in the Platinum Studios Film Fund, LLC Agreement (see Exhibit 7)

SANLI PASTORE & HILL, INC.

104

Exhibit 7

Platinum Studios, Inc.

Capital Structure per Film Fund, LLC Agreement

Date of Value: March 31, 2008

Slate Financing ¹

Private Equity	25	%	$	45,000,000
Senior Debt	50	%		90,000,000
Mezzanine Debt	25	%		45,000,000

Total Slate Financing	100	%	$	180,000,000

Average Film Budget			$	12,000,000

	2008			2009			2010			2011			2012			2013			2014			2015			2016			2017			2018			2019			2020		2021		2022
	(1)			(2)			(3)			(4)			(5)			(6)			(7)			(8)			(9)			(10)			(11)			(12)			(13)		(14)		(15)

Projects (Schedule 11)

Film 1 - 2008	$	12,000,000			-			-			-			-			-			-
Film 2 - 2009		-			12,000,000			-			-			-			-			-
Film 3 - 2009		-			12,000,000			-			-			-			-			-
Film 4 - 2010		-			-			12,000,000			-			-			-			-
Film 5 - 2010		-			-			12,000,000			-			-			-			-
Film 6 - 2011		-			-			12,000,000			12,000,000			-			-			-
Film 7 - 2011		-			-			-			12,000,000			-			-			-
Film 8 - 2011		-			-			-			12,000,000			-			-			-
Film 9 - 2012		-			-			-			-			12,000,000			-			-
Film 10 - 2012		-			-			-			-			12,000,000			-			-
Film 11 - 2012		-			-			-			-			12,000,000			-			-
Film 12 - 2013		-			-			-			-			-			12,000,000			-
Film 13 - 2013		-			-			-			-			-			12,000,000			-
Film 14 - 2013		-			-			-			-			-			12,000,000			-
Film 15 - 2014		-			-			-			-			-			-			12,000,000
Film 16 - 2014		-			-			-			-			-			-			12,000,000
Film 17 - 2014		-			-			-			-			-			-			12,000,000

Total Slate Financing	$	12,000,000		$	24,000,000		$	36,000,000		$	36,000,000		$	36,000,000		$	36,000,000		$	36,000,000

Cumulative Slate Financing	$	12,000,000		$	36,000,000		$	72,000,000		$	108,000,000		$	144,000,000		$	180,000,000		$	216,000,000


Slate 1	180,000,000
Number of Projects		1			2			3			3			3			3
Equity		12,000,000			36,000,000			45,000,000			45,000,000			45,000,000			45,000,000
Debt		0			0			27,000,000			63,000,000			99,000,000			135,000,000
Debt / Equity		0			0			0.60			1.40			2.20			3.00

Slate 2										180,000,000
Number of Projects											1			2			3			3			3			3
Debt / Equity											0			0			0.60			1.40			2.20			3.00

Slate 3																			180,000,000
Number of Projects																				1			2			3			3			3			3
Debt / Equity																				0			0			0.60			1.40			2.20			3.00

Slate 4																												180,000,000
Number of Projects																													1			2			3			3		3		3
Debt / Equity																													0.00			0.00			0.60			1.40		2.20		3.00


Average Debt / Equity		0.00			0.00			0.60			0.70			1.10			1.80			0.70			1.10			1.80			0.70			1.10			1.80
% Debt		0.00	%		0.00	%		37.50	%		41.18	%		52.38	%		64.29	%		41.18	%		52.38	%		64.29	%		41.18	%		52.38	%		64.29	%
Average % Debt (if Fund is perpetual)		52.61	%

Note 1: Per Platinum Studios Film Fund, LLC

SANLI PASTORE & HILL, INC.

105

Exhibit 8: Ultimate Revenues and Costs

Platinum Studios, Inc.

Film Entertainment: Joint Venture Film Division Assumptions

		Action				Comedy				Thriller				Horror
		Low Budget				Low Budget				Low Budget				Low Budget

Projected Budget		$	25,000,000			$	15,000,000			$	20,000,000			$	15,000,000
Implied Domestic Box Office	Average of Median and Mean Multiple of Low Budget Films; Based on Box Office Mojo data	$	33,000,000	1.32		$	17,550,000	1.17		$	31,000,000	1.55		$	12,150,000	0.81
Implied International Box Office	Average of Median and Mean Multiple of Low Budget Films; Based on Box Office Mojo data	$	40,750,000	1.63		$	7,200,000	0.48		$	19,400,000	0.97		$	15,000,000	1.00

Gross Receipts	Notes
Domestic Theatrical	Based on Industry Estimates, Baselineresearch and Vogel 2007	$	16,500,000	50.0	%	$	8,775,000	50.0	%	$	15,500,000	50.0	%	$	6,075,000	50.0	%
International Theatrical	Based on Industry Estimates, Baselineresearch and Vogel 2007		16,300,000	40.0	%		2,880,000	40.0	%		7,760,000	40.0	%		6,000,000	40.0	%
Domestic Home Video	% of Domestic Box Office, Based on Historical Actual of Marvel PG-13 Films		25,740,000	78.0	%		13,689,000	78.0	%		24,180,000	78.0	%		9,477,000	78.0	%
International Home Video	% of Domestic Home Video, Based on Historical Actual of Marvel PG-13 Films		15,444,000	60.0	%		8,213,400	60.0	%		14,508,000	60.0	%		5,686,200	60.0	%
Domestic Television
PPV	% of Domestic Theatrical, cap of $7.5M, Based on Industry Estimates, Marvel		2,062,500	12.5	%		1,096,875	12.5	%		1,937,500	12.5	%		759,375	12.5	%
Pay TV	% of Domestic Theatrical, cap of $17.5M, Based on Industry Estimates, Marvel		7,425,000	45.0	%		3,948,750	45.0	%		6,975,000	45.0	%		2,733,750	45.0	%
Network TV	% of Domestic Theatrical, cap of $40M, Based on Industry Estimates, Marvel		2,970,000	18.0	%		1,579,500	18.0	%		2,790,000	18.0	%		1,093,500	18.0	%
Syndicated TV	% of Domestic Theatrical		577,500	3.5	%		307,125	3.5	%		542,500	3.5	%		212,625	3.5	%
International Television
Pay TV	% of International Theatrical, cap of $30M, Based on Industry Estimates, Marvel		5,379,000	33.0	%		950,400	33.0	%		2,560,800	33.0	%		1,980,000	33.0	%
Network TV	% of International Theatrical, cap of $30M, Based on Industry Estimates, Marvel		8,150,000	50.0	%		1,440,000	50.0	%		3,880,000	50.0	%		3,000,000	50.0	%
Domestic Merchandising	% of Domestic Box Office less 35% Distribution Fees based on SNL Kagan 2007; Platinum collects 25% of Net		284,213	0.9	%		75,575	0.4	%		133,494	0.4	%		26,160	0.2	%
International Merchandising	% of International Box Office less 35% Distribution Fees based on SNL Kagan 2007; Platinum collects 25% of Net		350,959	0.9	%		31,005	0.4	%		83,541	0.4	%		32,297	0.2	%
Total Gross Receipts		$	101,183,172			$	42,986,630			$	80,850,835			$	37,075,907

Distribution Costs
Domestic Theatrical	% of Domestic Theatrical, Vogel 2007	$	3,300,000	20.0	%	$	1,755,000	20.0	%	$	3,100,000	20.0	%	$	1,215,000	20.0	%
International Theatrical	% of International Theatrical, Vogel 2007		3,260,000	20.0	%		576,000	20.0	%		1,552,000	20.0	%		1,200,000	20.0	%
Domestic Home Video	% of Domestic Home Video Revenue, Based on Industry Estimates, Vogel 2007		5,148,000	20.0	%		2,737,800	20.0	%		4,836,000	20.0	%		1,895,400	20.0	%
International Home Video	% of International Home Video Revenue, Based on Industry Estimates, Vogel 2007		3,088,800	20.0	%		1,642,680	20.0	%		2,901,600	20.0	%		1,137,240	20.0	%
Domestic Television Cost	% of Television Revenue, Based on Industry Estimates, Marvel		2,607,000	20.0	%		1,386,450	20.0	%		2,449,000	20.0	%		959,850	20.0	%
International Television Cost	% of Television Revenue, Based on Industry Estimates, Marvel		2,705,800	20.0	%		478,080	20.0	%		1,288,160	20.0	%		996,000	20.0	%
Total Distribution Costs		$	20,109,600			$	8,576,010			$	16,126,760			$	7,403,490

Publicity Expenses
Domestic Theatrical
Advertising	% of Budget, 2006 Average Ad / Negative Costs, MPAA	$	11,667,933	46.7	%	$	7,000,760	46.7	%	$	9,334,347	46.7	%	$	7,000,760	46.7	%
Publicity	% of Budget, 2006 Average Print / Negative Costs, MPAA		1,455,167	5.8	%		873,100	5.8	%		1,164,134	5.8	%		873,100	5.8	%
International Theatrical
Advertising	% of Domestic Advertising		5,833,967	50.0	%		3,500,380	50.0	%		4,667,173	50.0	%		3,500,380	50.0	%
Publicity	% of Domestic Publicity		727,584	50.0	%		436,550	50.0	%		582,067	50.0	%		436,550	50.0	%
Total Publicity Expense		$	19,684,650			$	11,810,790			$	15,747,720			$	11,810,790

Negative Costs	Same as Projected Budget	$	25,000,000			$	15,000,000			$	20,000,000			$	15,000,000

Contribution Profit	% of Total Gross Receipts	$	36,388,921	36.0	%	$	7,599,829	17.7	%	$	28,976,355	35.8	%	$	2,861,627	7.7	%

= Inputs/Assumptions

SANLI PASTORE & HILL, INC.

106

Exhibit 9: Time of Cash Flow from Low Budget Action Film

Platinum Studios, Inc.

Film Entertainment: Joint Venture Film Division: Action - Low Budget

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Domestic Theatrical	$	0		$	16,500,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	16,500,000
International Theatrical		0			13,855,000		2,445,000		0		0		0		0		0		0		0		0		16,300,000
Domestic Home Video		0			19,305,000		1,801,800		1,544,400		1,029,600		772,200		257,400		257,400		257,400		257,400		257,400		25,740,000
International Home Video		0			7,722,000		5,405,400		772,200		463,320		308,880		154,440		154,440		154,440		154,440		154,440		15,444,000
Domestic Television
PPV		0			61,875		2,000,625		0		0		0		0		0		0		0		0		2,062,500
Pay TV		0			222,750		5,568,750		1,633,500		0		0		0		0		0		0		0		7,425,000
Network TV		0			0		0		445,500		1,485,000		445,500		445,500		148,500		0		0		0		2,970,000
Syndicated TV		0			0		0		0		115,500		115,500		115,500		57,750		57,750		57,750		57,750		577,500
International Television
Pay TV		0			0		806,850		2,958,450		1,613,700		0		0		0		0		0		0		5,379,000
Syndicated TV		0			0		0		0		1,630,000		1,630,000		1,630,000		815,000		815,000		815,000		815,000		8,150,000
Domestic Merchandising		0			213,159		19,895		17,053		11,369		8,526		5,684		2,842		2,842		1,421		1,421		284,213
International Merchandising		0			263,220		24,567		21,058		14,038		10,529		7,019		3,510		3,510		1,755		1,755		350,959
Total Gross Receipts	$	0		$	58,143,004	$	18,072,887	$	7,392,160	$	6,362,527	$	3,291,135	$	2,615,543	$	1,439,442	$	1,290,942	$	1,287,766	$	1,287,766	$	101,183,172

Distribution Costs
Domestic Theatrical	$	0		$	3,300,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	3,300,000
International Theatrical		0			2,771,000		489,000		0		0		0		0		0		0		0		0		3,260,000
Domestic Home Video		0			3,603,600		257,400		205,920		154,440		154,440		154,440		154,440		154,440		154,440		154,440		5,148,000
International Home Video		0			1,389,960		1,019,304		154,440		123,552		92,664		61,776		61,776		61,776		61,776		61,776		3,088,800
Domestic Television Cost		0			130,350		1,303,500		521,400		260,700		130,350		52,140		52,140		52,140		52,140		52,140		2,607,000
International Television Cost		0			135,290		1,352,900		541,160		270,580		135,290		54,116		54,116		54,116		54,116		54,116		2,705,800
Total Distribution Costs	$	0		$	11,330,200	$	4,422,104	$	1,422,920	$	809,272	$	512,744	$	322,472	$	322,472	$	322,472	$	322,472	$	322,472	$	20,109,600

Publicity Expenses
Domestic Theatrical
Advertising	$	1,166,793		$	10,501,140	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	11,667,933
Prints		0			1,455,167		0		0		0		0		0		0		0		0		0		1,455,167
International Theatrical
Advertising		583,397			5,250,570		0		0		0		0		0		0		0		0		0		5,833,967
Prints		0			618,446		109,138		0		0		0		0		0		0		0		0		727,584
Total Publicity Expenses	$	1,750,190		$	17,825,323	$	109,138	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	19,684,650

Negative Costs	$	25,000,000		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	25,000,000

Contribution Profit	$	(26,750,190	)	$	28,987,481	$	13,541,645	$	5,969,240	$	5,553,255	$	2,778,391	$	2,293,071	$	1,116,970	$	968,470	$	965,294	$	965,294	$	36,388,921

Source: Exhibit 8 (Ultimate Revenues and Costs) multiplied by Exhibit 2 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

107

Exhibit 10: Time of Cash Flow from Low Budget Comedy Film

Platinum Studios, Inc.

Film Entertainment: Joint Venture Film Division: Comedy - Low Budget

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Domestic Theatrical	$	0		$	8,775,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	8,775,000
International Theatrical		0			2,448,000		432,000		0		0		0		0		0		0		0		0		2,880,000
Domestic Home Video		0			10,266,750		958,230		821,340		547,560		410,670		136,890		136,890		136,890		136,890		136,890		13,689,000
International Home Video		0			4,106,700		2,874,690		410,670		246,402		164,268		82,134		82,134		82,134		82,134		82,134		8,213,400
Domestic Television
PPV		0			32,906		1,063,969		0		0		0		0		0		0		0		0		1,096,875
Pay TV		0			118,463		2,961,563		868,725		0		0		0		0		0		0		0		3,948,750
Network TV		0			0		0		236,925		789,750		236,925		236,925		78,975		0		0		0		1,579,500
Syndicated TV		0			0		0		0		61,425		61,425		61,425		30,713		30,713		30,713		30,713		307,125
International Television
Pay TV		0			0		142,560		522,720		285,120		0		0		0		0		0		0		950,400
Syndicated TV		0			0		0		0		288,000		288,000		288,000		144,000		144,000		144,000		144,000		1,440,000
Domestic Merchandising		0			56,681		5,290		4,534		3,023		2,267		1,511		756		756		378		378		75,575
International Merchandising		0			23,254		2,170		1,860		1,240		930		620		310		310		155		155		31,005
Total Gross Receipts	$	0		$	25,827,754	$	8,440,472	$	2,866,775	$	2,222,520	$	1,164,485	$	807,506	$	473,777	$	394,802	$	394,269	$	394,269	$	42,986,630

Distribution Costs
Domestic Theatrical	$	0		$	1,755,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	1,755,000
International Theatrical		0			489,600		86,400		0		0		0		0		0		0		0		0		576,000
Domestic Home Video		0			1,916,460		136,890		109,512		82,134		82,134		82,134		82,134		82,134		82,134		82,134		2,737,800
International Home Video		0			739,206		542,084		82,134		65,707		49,280		32,854		32,854		32,854		32,854		32,854		1,642,680
Domestic Television Cost		0			69,323		693,225		277,290		138,645		69,323		27,729		27,729		27,729		27,729		27,729		1,386,450
International Television Cost		0			23,904		239,040		95,616		47,808		23,904		9,562		9,562		9,562		9,562		9,562		478,080
Total Distribution Costs	$	0		$	4,993,493	$	1,697,639	$	564,552	$	334,294	$	224,641	$	152,278	$	152,278	$	152,278	$	152,278	$	152,278	$	8,576,010

Publicity Expenses
Domestic Theatrical
Advertising	$	700,076		$	6,300,684	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	7,000,760
Prints		0			873,100		0		0		0		0		0		0		0		0		0		873,100
International Theatrical
Advertising		350,038			3,150,342		0		0		0		0		0		0		0		0		0		3,500,380
Prints		0			371,068		65,483		0		0		0		0		0		0		0		0		436,550
Total Publicity Expenses	$	1,050,114		$	10,695,194	$	65,483	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	11,810,790

Negative Costs	$	15,000,000		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	15,000,000

Contribution Profit	$	(16,050,114	)	$	10,139,067	$	6,677,350	$	2,302,223	$	1,888,226	$	939,844	$	655,227	$	321,499	$	242,524	$	241,991	$	241,991	$	7,599,829

Source: Exhibit 8 (Ultimate Revenues and Costs) multiplied by Exhibit 2 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

108

Exhibit 11: Time of Cash Flow from Low Budget Thriller Film

Platinum Studios, Inc.

Film Entertainment: Joint Venture Film Division: Thriller - Low Budget

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Domestic Theatrical	$	0		$	15,500,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	15,500,000
International Theatrical		0			6,596,000		1,164,000		0		0		0		0		0		0		0		0		7,760,000
Domestic Home Video		0			18,135,000		1,692,600		1,450,800		967,200		725,400		241,800		241,800		241,800		241,800		241,800		24,180,000
International Home Video		0			7,254,000		5,077,800		725,400		435,240		290,160		145,080		145,080		145,080		145,080		145,080		14,508,000
Domestic Television
PPV		0			58,125		1,879,375		0		0		0		0		0		0		0		0		1,937,500
Pay TV		0			209,250		5,231,250		1,534,500		0		0		0		0		0		0		0		6,975,000
Network TV		0			0		0		418,500		1,395,000		418,500		418,500		139,500		0		0		0		2,790,000
Syndicated TV		0			0		0		0		108,500		108,500		108,500		54,250		54,250		54,250		54,250		542,500
International Television
Pay TV		0			0		384,120		1,408,440		768,240		0		0		0		0		0		0		2,560,800
Syndicated TV		0			0		0		0		776,000		776,000		776,000		388,000		388,000		388,000		388,000		3,880,000
Domestic Merchandising		0			100,120		9,345		8,010		5,340		4,005		2,670		1,335		1,335		667		667		133,494
International Merchandising		0			62,656		5,848		5,012		3,342		2,506		1,671		835		835		418		418		83,541
Total Gross Receipts	$	0		$	47,915,151	$	15,444,337	$	5,550,662	$	4,458,861	$	2,325,071	$	1,694,221	$	970,800	$	831,300	$	830,215	$	830,215	$	80,850,835

Distribution Costs
Domestic Theatrical	$	0		$	3,100,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	3,100,000
International Theatrical		0			1,319,200		232,800		0		0		0		0		0		0		0		0		1,552,000
Domestic Home Video		0			3,385,200		241,800		193,440		145,080		145,080		145,080		145,080		145,080		145,080		145,080		4,836,000
International Home Video		0			1,305,720		957,528		145,080		116,064		87,048		58,032		58,032		58,032		58,032		58,032		2,901,600
Domestic Television Cost		0			122,450		1,224,500		489,800		244,900		122,450		48,980		48,980		48,980		48,980		48,980		2,449,000
International Television Cost		0			64,408		644,080		257,632		128,816		64,408		25,763		25,763		25,763		25,763		25,763		1,288,160
Total Distribution Costs	$	0		$	9,296,978	$	3,300,708	$	1,085,952	$	634,860	$	418,986	$	277,855	$	277,855	$	277,855	$	277,855	$	277,855	$	16,126,760

Publicity Expenses
Domestic Theatrical
Advertising	$	933,435		$	8,400,912	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	9,334,347
Prints		0			1,164,134		0		0		0		0		0		0		0		0		0		1,164,134
International Theatrical
Advertising		466,717			4,200,456		0		0		0		0		0		0		0		0		0		4,667,173
Prints		0			494,757		87,310		0		0		0		0		0		0		0		0		582,067
Total Publicity Expenses	$	1,400,152		$	14,260,258	$	87,310	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	15,747,720

Negative Costs	$	20,000,000		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	20,000,000

Contribution Profit	$	(21,400,152	)	$	24,357,915	$	12,056,319	$	4,464,710	$	3,824,001	$	1,906,085	$	1,416,366	$	692,945	$	553,445	$	552,360	$	552,360	$	28,976,355

Source: Exhibit 8 (Ultimate Revenues and Costs) multiplied by Exhibit 2 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

109

Exhibit 12: Time of Cash Flow from Horror Film

Platinum Studios, Inc.

Film Entertainment: Joint Venture Film Division: Horror

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Domestic Theatrical	$	0		$	6,075,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	6,075,000
International Theatrical		0			5,100,000		900,000		0		0		0		0		0		0		0		0		6,000,000
Domestic Home Video		0			7,107,750		663,390		568,620		379,080		284,310		94,770		94,770		94,770		94,770		94,770		9,477,000
International Home Video		0			2,843,100		1,990,170		284,310		170,586		113,724		56,862		56,862		56,862		56,862		56,862		5,686,200
Domestic Television
PPV		0			22,781		736,594		0		0		0		0		0		0		0		0		759,375
Pay TV		0			82,013		2,050,313		601,425		0		0		0		0		0		0		0		2,733,750
Network TV		0			0		0		164,025		546,750		164,025		164,025		54,675		0		0		0		1,093,500
Syndicated TV		0			0		0		0		42,525		42,525		42,525		21,263		21,263		21,263		21,263		212,625
International Television
Pay TV		0			0		297,000		1,089,000		594,000		0		0		0		0		0		0		1,980,000
Syndicated TV		0			0		0		0		600,000		600,000		600,000		300,000		300,000		300,000		300,000		3,000,000
Domestic Merchandising		0			19,620		1,831		1,570		1,046		785		523		262		262		131		131		26,160
International Merchandising		0			24,223		2,261		1,938		1,292		969		646		323		323		161		161		32,297
Total Gross Receipts	$	0		$	21,274,487	$	6,641,558	$	2,710,887	$	2,335,279	$	1,206,338	$	959,351	$	528,154	$	473,479	$	473,187	$	473,187	$	37,075,907

Distribution Costs
Domestic Theatrical	$	0		$	1,215,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	1,215,000
International Theatrical		0			1,020,000		180,000		0		0		0		0		0		0		0		0		1,200,000
Domestic Home Video		0			1,326,780		94,770		75,816		56,862		56,862		56,862		56,862		56,862		56,862		56,862		1,895,400
International Home Video		0			511,758		375,289		56,862		45,490		34,117		22,745		22,745		22,745		22,745		22,745		1,137,240
Domestic Television Cost		0			47,993		479,925		191,970		95,985		47,993		19,197		19,197		19,197		19,197		19,197		959,850
International Television Cost		0			49,800		498,000		199,200		99,600		49,800		19,920		19,920		19,920		19,920		19,920		996,000
Total Distribution Costs	$	0		$	4,171,331	$	1,627,984	$	523,848	$	297,937	$	188,772	$	118,724	$	118,724	$	118,724	$	118,724	$	118,724	$	7,403,490

Publicity Expenses
Domestic Theatrical
Advertising	$	700,076		$	6,300,684	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	7,000,760
Prints		0			873,100		0		0		0		0		0		0		0		0		0		873,100
International Theatrical
Advertising		350,038			3,150,342		0		0		0		0		0		0		0		0		0		3,500,380
Prints		0			371,068		65,483		0		0		0		0		0		0		0		0		436,550
Total Publicity Expenses	$	1,050,114		$	10,695,194	$	65,483	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	11,810,790

Negative Costs	$	15,000,000		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	15,000,000

Contribution Profit	$	(16,050,114	)	$	6,407,962	$	4,948,092	$	2,187,039	$	2,037,343	$	1,017,566	$	840,627	$	409,430	$	354,755	$	354,463	$	354,463	$	2,861,627

Source: Exhibit 8 (Ultimate Revenues and Costs) multiplied by Exhibit 2 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

110

Exhibit 13: Ultimate Revenues and Costs

Platinum Studios, Inc.

Film Entertainment: Film Fund Division

		Film Fund

Projected Budget		$	10,000,000
Implied Domestic Box Office	Median of Low Budget Comic Book Movies, Based on Box Office Mojo data	$	13,500,000	1.35
Implied International Box Office	Median of Low Budget Comic Book Movies, Based on Box Office Mojo data	$	8,800,000	0.88


Gross Receipts	Notes
Domestic Theatrical	Based on Industry Estimates, Baselineresearch and Vogel 2007	$	6,750,000	50.0	%
International Theatrical	Based on Industry Estimates, Baselineresearch and Vogel 2007		3,520,000	40.0	%
Domestic Home Video	% of Domestic Box Office, Based on Historical Actual of Marvel PG-13 Films		10,530,000	78.0	%
International Home Video	% of Domestic Home Video, Based on Historical Actual of Marvel PG-13 Films		6,318,000	60.0	%
Domestic Television
PPV	% of Domestic Theatrical, cap of $7.5M, Based on Industry Estimates, Marvel		843,750	12.5	%
Pay TV	% of Domestic Theatrical, cap of $17.5M, Based on Industry Estimates, Marvel		3,037,500	45.0	%
Network TV	% of Domestic Theatrical, cap of $40M, Based on Industry Estimates, Marvel		1,215,000	18.0	%
Syndicated TV	% of Domestic Theatrical		236,250	3.5	%
International Television
Pay TV	% of International Theatrical, cap of $30M, Based on Industry Estimates, Marvel		1,161,600	33.0	%
Network TV	% of International Theatrical, cap of $30M, Based on Industry Estimates, Marvel		1,760,000	50.0	%
Domestic Merchandising	% of Domestic Box Office less 35% Distribution Fees based on SNL Kagan 2007; Platinum collects 25% of Net		65,401	0.5	%
International Merchandising	% of International Box Office less 35% Distribution Fees based on SNL Kagan 2007; Platinum collects 25% of Net		42,632	0.5	%
Total Gross Receipts		$	35,480,133

Distribution Costs
Domestic Theatrical	% of Domestic Theatrical, Vogel 2007	$	1,350,000	20.0	%
International Theatrical	% of International Theatrical, Vogel 2007		704,000	20.0	%
Domestic Home Video	% of Domestic Home Video Revenue, Based on Industry Estimates, Vogel 2007		2,106,000	20.0	%
International Home Video	% of International Home Video Revenue, Based on Industry Estimates, Vogel 2007		1,263,600	20.0	%
Domestic Television Cost	% of Television Revenue, Based on Industry Estimates, Marvel		1,066,500	20.0	%
International Television Cost	% of Television Revenue, Based on Industry Estimates, Marvel		584,320	20.0	%
Total Distribution Costs		$	7,074,420

Publicity Expenses
Domestic Theatrical
Advertising	% of Budget, 2006 Average Ad / Negative Costs, MPAA	$	4,667,173	46.7	%
Publicity	% of Budget, 2006 Average Print / Negative Costs, MPAA		582,067	5.8	%
International Theatrical
Advertising	% of Domestic Advertising		2,333,587	50.0	%
Publicity	% of Domestic Publicity		291,033	50.0	%
Total Publicity Expense		$	7,873,860

Negative Costs	Same as Projected Budget	$	10,000,000

Contribution Profit	% of Total Gross Receipts	$	10,531,853	29.7	%

= Inputs/Assumptions

SANLI PASTORE & HILL, INC.

111

Exhibit 14: Time of Cash Flow from Film Fund per Film

Platinum Studios, Inc.

Film Entertainment: Film Fund Division

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Domestic Theatrical	$	0		$	6,750,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	6,750,000
International Theatrical		0			2,992,000		528,000		0		0		0		0		0		0		0		0		3,520,000
Domestic Home Video		0			7,897,500		737,100		631,800		421,200		315,900		105,300		105,300		105,300		105,300		105,300		10,530,000
International Home Video		0			3,159,000		2,211,300		315,900		189,540		126,360		63,180		63,180		63,180		63,180		63,180		6,318,000
Domestic Television		0			0		0		0		0		0		0		0		0		0		0
PPV		0			25,313		818,438		0		0		0		0		0		0		0		0		843,750
Pay TV		0			91,125		2,278,125		668,250		0		0		0		0		0		0		0		3,037,500
Network TV		0			0		0		182,250		607,500		182,250		182,250		60,750		0		0		0		1,215,000
Syndicated TV		0			0		0		0		47,250		47,250		47,250		23,625		23,625		23,625		23,625		236,250
International Television		0			0		0		0		0		0		0		0		0		0		0
Pay TV		0			0		174,240		638,880		348,480		0		0		0		0		0		0		1,161,600
Syndicated TV		0			0		0		0		352,000		352,000		352,000		176,000		176,000		176,000		176,000		1,760,000
Domestic Merchandising		0			49,051		4,578		3,924		2,616		1,962		1,308		654		654		327		327		65,401
International Merchandising		0			31,974		2,984		2,558		1,705		1,279		853		426		426		213		213		42,632
Total Gross Receipts	$	0		$	20,995,962	$	6,754,765	$	2,443,562	$	1,970,291	$	1,027,001	$	752,141	$	429,935	$	369,185	$	368,645	$	368,645	$	35,480,133

Distribution Costs
Domestic Theatrical	$	0		$	1,350,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	1,350,000
International Theatrical		0			598,400		105,600		0		0		0		0		0		0		0		0		704,000
Domestic Home Video		0			1,474,200		105,300		84,240		63,180		63,180		63,180		63,180		63,180		63,180		63,180		2,106,000
International Home Video		0			568,620		416,988		63,180		50,544		37,908		25,272		25,272		25,272		25,272		25,272		1,263,600
Domestic Television Cost		0			53,325		533,250		213,300		106,650		53,325		21,330		21,330		21,330		21,330		21,330		1,066,500
International Television Cost		0			29,216		292,160		116,864		58,432		29,216		11,686		11,686		11,686		11,686		11,686		584,320
Total Distribution Costs	$	0		$	4,073,761	$	1,453,298	$	477,584	$	278,806	$	183,629	$	121,468	$	121,468	$	121,468	$	121,468	$	121,468	$	7,074,420

Publicity Expenses
Domestic Theatrical
Advertising	$	466,717		$	4,200,456	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	4,667,173
Prints		0			582,067		0		0		0		0		0		0		0		0		0		582,067
International Theatrical
Advertising		233,359			2,100,228		0		0		0		0		0		0		0		0		0		2,333,587
Prints		0			247,378		43,655		0		0		0		0		0		0		0		0		291,033
Total Publicity Expenses	$	700,076		$	7,130,129	$	43,655	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	7,873,860

Negative Costs	$	10,000,000		$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	10,000,000

Contribution Profit	$	(10,700,076	)	$	9,792,072	$	5,257,812	$	1,965,978	$	1,691,485	$	843,372	$	630,672	$	308,467	$	247,717	$	247,177	$	247,177	$	10,531,853

Source: Exhibit 13 (Ultimate Revenues and Costs) multiplied by Exhibit 2 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

112

Exhibit 15: Ultimate Revenues and Costs for Direct to DVD Films

Platinum Studios, Inc.

Film Entertainment: Direct to DVD Division

		Direct to DVD

Projected Budget		$	1,500,000

Gross Receipts	Notes
Home Video	Multiple of Budget; Average of Minimum and Lower Quartile of Top 25 Direct to DVD Releases in 2005; Video Business		2,737,500	1.8
Television
PPV	% of Home Video Revenues		54,750	2.0	%
Pay TV/ Free TV	% of Home Video Revenues		1,267,463	46.3	%
Total Gross Receipts		$	4,059,713

Distribution Costs
Home Video	% of Home Video Revenue, Based on Industry Estimates, Vogel 2007		958,125	35.0	%
Television Cost	% of Television Revenue, Based on Industry Estimates, Marvel		66,111	5.0	%
Total Distribution Costs		$	1,024,236

Negative Costs	Same as Projected Budget	$	1,500,000

Contribution Profit	% of Total Gross Receipts	$	1,535,477	37.8	%

= Inputs/Assumptions

SANLI PASTORE & HILL, INC.

113

Exhibit 16: Time of Cash Flows from Ultimates

Platinum Studios, Inc.

Film Entertainment: Direct to DVD Films

Year of Cash Flow	0			1			2			3			4			5			6			7			8			9			10			Total

Gross Receipts
Home Video		0.0	%		80.0	%		10.0	%		5.0	%		1.0	%		1.0	%		1.0	%		0.5	%		0.5	%		0.5	%		0.5	%		100.0	%
Television
PPV		0.0	%		100.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Pay TV/ Free TV		0.0	%		0.0	%		75.0	%		15.0	%		7.5	%		2.5	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Total Gross Receipts		0.0	%		60.0	%		28.3	%		6.7	%		2.8	%		1.2	%		0.3	%		0.2	%		0.2	%		0.2	%		0.2	%		100.0	%

Distribution Costs
Home Video		0.0	%		80.0	%		10.0	%		5.0	%		1.0	%		1.0	%		1.0	%		0.5	%		0.5	%		0.5	%		0.5	%		100.0	%
Television Cost		0.0	%		0.0	%		75.0	%		15.0	%		7.5	%		2.5	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%
Total Distribution Costs		0.0	%		40.0	%		42.5	%		10.0	%		4.3	%		1.8	%		0.5	%		0.3	%		0.3	%		0.3	%		0.3	%		100.0	%

Negative Costs		25.0	%		75.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%

SANLI PASTORE & HILL, INC.

114

Exhibit 17: Time of Cash Flow from Direct to DVD Films

Platinum Studios, Inc.

Film Entertainment: Direct to DVD Division

Year of Cash Flow	0			1		2		3		4		5		6		7		8		9		10		Total

Gross Receipts
Home Video		0			2,190,000		273,750		136,875		27,375		27,375		27,375		13,688		13,688		13,688		13,688		2,737,500
Television
PPV		0			54,750		0		0		0		0		0		0		0		0		0		54,750
Pay TV/ Free TV		0			0		950,597		190,119		95,060		31,687		0		0		0		0		0		1,267,463
Total Gross Receipts	$	0		$	2,244,750	$	1,224,347	$	326,994	$	122,435	$	59,062	$	27,375	$	13,688	$	13,688	$	13,688	$	13,688	$	4,059,713

Distribution Costs
Home Video		0			766,500		95,813		47,906		9,581		9,581		9,581		4,791		4,791		4,791		4,791		958,125
Television Cost		0			0		49,583		9,917		4,958		1,653		0		0		0		0		0		66,111
Total Distribution Costs	$	0		$	766,500	$	145,395	$	57,823	$	14,540	$	11,234	$	9,581	$	4,791	$	4,791	$	4,791	$	4,791	$	1,024,236

Negative Costs	$	375,000		$	1,125,000	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	1,500,000

Contribution Profit	$	(375,000	)	$	353,250	$	1,078,951	$	269,172	$	107,895	$	47,828	$	17,794	$	8,897	$	8,897	$	8,897	$	8,897	$	1,535,477

Source: Exhibit 15 (Ultimate Revenues and Costs) multiplied by Exhibit 16 (Time of Cash Flow from Ultimates).

SANLI PASTORE & HILL, INC.

115

Exhibit 18: Traffic Analysis of Digital Publishing Division

Platinum Studios, Inc.

Digital Publishing Division

	Jan-08		Feb-08		Mar-08		Monthly Average		Annualized Average

PageViews		16,373,541		14,470,090		15,371,530		15,405,054		184,860,644
Total Visitors		2,852,061		2,202,324		2,482,136		2,512,174		30,146,084

Source: Provided by Management.

SANLI PASTORE & HILL, INC.

116

Exhibit 19: Base Year Assumptions of Digital Publishing Division

Platinum Studios, Inc.

Digital Publishing Division

MERCHANDISE SALES:

Assumptions

Calculation

Notes

# of Visitors¹

22,609,563

Exhibit 18

Conversion of Visitor to Purchaser

Source: Neilsen/NetRatings

Purchasers

904,383

C1=A1*B1

Average Purchase Amount

50.00

Ebay's 10Ks and 10Qs

Gross Purchases

45,219,126

E1=C1*D1

Proceeds Rate to PlatinumStudios.com

15.00

TOTAL NET SALES OF MERCHANDISE REVENUES

6,782,869

G1=E1*F1

ADVERTISING SALES:

Banners:

# of Page Views¹

138,645,483

Exhibit 18

CPM

5.00

Banner Ads / Page

% of Inventory Sold

Gross Banner Ad Revenues

1,247,809

E2=A2*B2*C2*D2/1000

Ad Agency/Partner Fee Y/E %

Ad Agency/Partner % Fee

623,905

G2=E2*F2

Total Banner Advertising Revenues

623,905

H2=E2-G2

Mini-Banners:

# of Page Views

138,645,483

Exhibit 18

CPM

5.00

Mini-Banner Ads / Page

% of Inventory Sold

100

Gross Mini-Banner Ad Revenues

1,386,455

E3=A3*B3*C3*D3/1000

Ad Agency/Partner Fee Y/E %

Ad Agency/Partner % Fee

693,227

G3=E3*F3

Total Mini-Banner Advertising Revenues

693,227

H3=E3-G3

Total Banner & Mini-Banner Ad Revenues

Sponsored Webisodes:

# of Episodes Produced

180

Start Year 2

Revenue / Episode

2,500

% of Inventory Sold

Gross Sponsored Webisode Ad Revenues

225,000

D4=A4*B4*C4

Ad Agency/Partner Fee Y/E %

Ad Agency/Partner % Fee

112,500

F4=D4*E4

Total Sponsored Webisodes Ad Revenues

112,500

G4=D4-F4

Total Gross Advertising Sales Revenues (before fees)

2,859,264

A6=E2+E3+D4

Advertising Agency/Partner Sales Fees

1,429,632

B6=G2+G3+F4

TOTAL ADVERTISING SALES REVENUES (net of fees)

1,429,632

C6=A6-B6

GAMING REVENUES

# Skinned Games

Add 50 each year, start year 2

1% of traffic

1% of games

10.00

$10/download

Gaming Downloads

1,130,478

E7=A1*A7*B7*C7*D7

0.50

0.5% of traffic

5.00

$5/month

Gaming Subscriptions

565,239

H7=A1*F7*G7

10.00

10% of traffic

50% of games

8.00

$8 CPM

In-game Advertising

452,191

L7=A1*I7*J7*K7/1000

TOTAL GAME REVENUES

2,147,908

M7=E7+H7+L7

SUBSCRIPTION SALES:

Visitors

22,609,563

Exhibit 18

Conversion Rate of New to Annual Subscribers

0.5

Annual Subscribers

113,048

C8=A8*B8

Annual Subscription Price

GROSS SUBSCRIPTION SALES:

2,260,956

E8=C8*D8

SYNDICATION REVENUES

Gross Advertising Revenue

2,859,264

A9=A6

Syndication Revenue, % of Ad Revenue

% of Shows Syndicated

Total Gross Syndication Revenue

714,816

D9=A9*B9*C9

Ad Agency/Partner Fee Y/E %

Ad Agency/Partner % Fee

250,186

F9=D9*E9

SYNDICATION REVENUES (net of fees)

464,630

G9=D9-F9

COST OF SALES

2.50

A10

% of Subscription Revenues

Credit Card Processing Fees

56,524

B10=E8*A10

C10

Properties License Fees

107,222

D10=D9*C10

% of Gross Syndication Revenues

License Fee to Creator/epi

10,000

E10

License Fee to Creator

2,300,000

F10=E10*(A4+A7)

TOTAL COST OF SALES

2,463,746

G10=B10+D10+F10

SELLING GENERAL & ADMINISTRATIVE

30.00

% of Total Revenues

OTHER OPERATING EXPENSE

12,500

A11

$5,000/minute for each 2.5-minute episode

3rd Party Production Costs

2,875,000

B11=A11*(A4+A7)

Costs incur 1 year before revenue

Technical & Management Consulting

125,000

Marketing

1,000,000

Software and Technical Support

50,000

Equipment Maintenance

7,500

Site & Content Acquisition/Aggregation

300,000

Web Publishing

2,672,500

Translations

572,500

Depreciation

100,000

TOTAL OTHER OPERATING EXPENSE

7,702,500

Note 1: Page Views and Total Visitors data is 9 months data starting from April 1, 2008 to December 31, 2008.

SANLI PASTORE & HILL, INC.

117

Exhibit 20: Growth Assumptions of Digital Publishing Division

Platinum Studios, Inc.

Digital Publishing Division

	Year 0			Year 1			Year 2			Year 3			Year 4			Year 5			Year 6			Year 7			Year 8			Year 9			Year 10

1) TRAFFIC

Increase %
PageViews								10.00	%		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%
Total Visitors								10.00	%		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%

PageViews					138,645,483			203,346,708			223,681,379			246,049,517			270,654,469			297,719,916			327,491,907			360,241,098			396,265,208			435,891,729
Total Visitors					22,609,563			33,160,692			36,476,762			40,124,438			44,136,882			48,550,570			53,405,627			58,746,189			64,620,808			71,082,889

2) Capacity/Bandwidth
Cost / Visitor					0.14			0.14			0.14			0.14			0.14			0.14			0.14			0.14			0.14			0.14

3) REVENUES (See Revenues Worksheet):

Online Merchandise Sales Revenue
Conversion of Visitor to Purchase					0.0	%		1.0	%		2.0	%		3.0	%		3.0	%		3.0	%		3.0	%		3.0	%		3.0	%		3.0	%
Average Purchase Amount				$	50.00		$	50.00		$	52.00		$	54.08		$	56.24		$	58.49		$	60.83		$	63.27		$	65.80		$	68.43
Average Net Proceeds from Merchandise Sales*					15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%

Advertising Revenues:
Banners
CPM Annual Growth Rate								10	%		10	%		10	%		10	%		10	%		10	%		10	%		10	%		10	%
CPM				$	5.00		$	5.50		$	6.05		$	6.66		$	7.32		$	8.05		$	8.86		$	9.74		$	10.72		$	11.79
Banner Ads / Page					3			3			3			3			3			3			3			3			3			3
% of Inventory Sold					60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%
Ad Agency/Partner Fee Y/E %					50.0	%		50.0	%		50.0	%		50.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
*"Bugs"*
CPM Annual Growth Rate								10	%		10	%		10	%		10	%		10	%		10	%		10	%		10	%		10	%
CPM				$	5.00		$	5.50		$	6.05		$	6.66		$	7.32		$	8.05		$	8.86		$	9.74		$	10.72		$	11.79
Mini-Banner Ads / Page					2			2			2			2			2			2			2			2			2			2
% of Inventory Sold					100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Ad Agency/Partner Fee Y/E %					50.0	%		50.0	%		50.0	%		50.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
Sponsored Webisodes:
First Year of Webisodes productions		2
								15	%		15	%		15	%		15	%		15	%		15	%		15	%		15	%		15	%
# of Episodes/Games Produced					0			180			207			238			274			315			362			416			478			550
Revenue/Episode Annual Growth Rate								15	%		15	%		15	%		15	%		15	%		15	%		15	%		15	%		15	%
Revenue / Episode				$	2,500		$	2,875		$	3,306		$	3,802		$	4,373		$	5,028		$	5,783		$	6,650		$	7,648		$	8,795
% of Inventory Sold					50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%
Ad Agency/Partner Fee Y/E %					50.0	%		50.0	%		50.0	%		50.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%

Gaming Revenues
First Year of Gaming Revenues		2
# Skinned Games		0			-			50			100			150			200			250			300			350			400			450
Gaming Downloads				$	-		$	1,658,035		$	3,647,676		$	6,018,666		$	8,827,376		$	12,137,642		$	16,021,688		$	20,561,166		$	25,848,323		$	31,987,300
Gaming Subscriptions				$	-		$	829,017		$	911,919		$	1,003,111		$	1,103,422		$	1,213,764		$	1,335,141		$	1,468,655		$	1,615,520		$	1,777,072
In-game Advertising				$	-		$	663,214		$	1,459,070		$	2,407,466		$	3,530,951		$	4,855,057		$	6,408,675		$	8,224,467		$	10,339,329		$	12,794,920

Subscription Sales
First Year of Subscription Sales		2
Conversion Rate of Regulars to Annual Subscribers					-			0.50	%		1.00	%		1.50	%		1.50	%		2.00	%		2.00	%		2.50	%		2.50	%		3.00	%
Annual Subscription Price				$	20.00		$	20.00		$	20.00		$	20.00		$	20.00		$	20.00		$	20.00		$	20.00		$	20.00		$	20.00

Syndication Revenues:
Dom. Syndication Revenue, % of Ad Revenue					50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
% of Shows syndicated					50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
Ad Agency/Partner Fee Y/E %					35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%

4) COST OF SALES:
Credit Card Fees (% of Subscription Revenues)					2.5	%		2.5	%		2.5	%		2.5	%		2.5	%		2.5	%		2.5	%		2.5	%		2.5	%		2.5	%
Property License Fee (as a % of Syndication Rev)					15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%		15.0	%
Content License Fees to Creator				$	2,300,000		$	3,070,000		$	3,880,000		$	4,740,000		$	5,650,000		$	6,620,000		$	7,660,000		$	8,780,000		$	10,000,000		$	11,330,000
Web Hosting Fees				$	3,165,339		$	4,642,497		$	5,106,747		$	5,617,421		$	6,179,163		$	6,797,080		$	7,476,788		$	8,224,467		$	9,046,913		$	9,951,604

5) General and Administrative Expenses					30.0	%		29.0	%		28.0	%		27.0	%		25.0	%		24.0	%		22.0	%		22.0	%		22.0	%		22.0	%
(% of Gross Revenue)

6) OTHER OPERATING EXP.:
First Year of 3rd Party Productions		1
Inflation		3.1	%
# of Episodes Produced for 3rd party prodn					0			180			207			238			274			315			362			416			478			550
3rd Party Production Costs / Episode					12,500			12,888			13,287			13,699			14,124			14,561			15,013			15,478			15,958			16,453
Site Build/Maintenance					125,000			128,875			132,870			136,989			141,236			145,614			150,128			154,782			159,580			164,527
Marketing					1,000,000			1,031,000			1,062,961			1,095,913			1,129,886			1,164,913			1,201,025			1,238,257			1,276,643			1,316,218
Software/Tech Support, Annual					50,000			51,550			53,148			54,796			56,494			58,246			60,051			61,913			63,832			65,811
Equipment Maintenance					7,500			10,000			15,000			15,465			15,944			16,439			16,948			17,474			18,015			18,574
Site & Content Acquisition/Aggregation					300,000			309,300			318,888			328,774			338,966			349,474			360,307			371,477			382,993			394,866
Web Publishing					2,672,500			2,755,348			2,840,763			2,928,827			3,019,621			3,113,229			3,209,739			3,309,241			3,411,827			3,517,594
Translations					572,500			590,248			608,545			627,410			646,860			666,912			687,587			708,902			730,878			753,535
Depreciation					100,000			110,000			121,000			133,100			146,410			161,051			177,156			194,872			214,359			235,795

6) CAPITAL EXPENDITURES

Equipment Maint., % of Purch. Price/Yr		1.3			125,000			137,500			151,250			166,375			183,013			201,314			221,445			243,590			267,949			294,743

7) FINANCIAL, Income Statement
Tax Rate					40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%

SANLI PASTORE & HILL, INC.

118

Exhibit 21A

Platinum Studios, Inc.

Development of Equity Discount Rate

Date of Value: March 31, 2008

					Sources:

					Federal Reserve Statistical
Long-Term Risk-Free Rate			4.30	%	Release dated March 31, 2008
(20-Year Government Treasury Bonds)

Add:

Equity Risk Premium	6.30	%			Ibbotson Associates' Stocks, Bonds, Bills & Inflation, 2007 Yearbook

Size Premium	4.35	%			Ibid.

Industry Premium Adjustment	4.71	%			Average of Industry Premium for SIC Codes 731, 7373, 7375, 7379 per Ibbotson Associates' Stocks, Bonds, Bills & Inflation Valuation Edition (2007 Yearbook)

Adjusted Equity Risk Premium	15.36	%	15.36	%

Specific Company Risk ¹			7.00	%	Per company research and analysis

After-Tax Equity Discount Rate:			26.66	%

After-Tax Equity Discount Rate (rounded):			26.7	%

SANLI PASTORE & HILL, INC.

119

Exhibit 21B

Platinum Studios, Inc.

Development of Rate of Return on Debt

Date of Value: March 31, 2008

Sources:

Bank Prime Rate:

5.25

Federal Reserve Statistical Release

Rate as of March 31, 2008

Corporate Bonds:

Moody's Seasonal

Aaa

5.66

Ibid.

Baa

6.48

Ibid.

Weighted Average Interest Rate on Platinum's Interest Bearing Debt

8.25

Per Management and SP&H Analysis

After-Tax Rate of Return on Debt (rounded):

5.0

(Rate of Return on Debt x (1 - tax rate of 40%))

SANLI PASTORE & HILL, INC.

120

Exhibit 21C

Platinum Studios, Inc.

Development of Weighted Average Cost of Capital (WACC)

Date of Value: March 31, 2008

	Rate			Weight			WACC

After-Tax Equity Discount Rate: (Exhibit 21A)		26.7	%		80	%		21.4	%

After-Tax Rate of Return on Debt: (Exhibit 21B)		5.0	%		20	%		1.0	%

After-Tax WACC					100	%		22.4	%

Less:
Long-Term Growth Rate								3.1	%

After-Tax Capitalization Rate								19.3	%

SANLI PASTORE & HILL, INC.

121

Exhibit 22: Base Year Assumptions of Video Network Division

Platinum Studios, Inc.

Video Network Division

Assumptions

Calculation

Notes

ADVERTISING SALES:

Video Pre-Rolls

# of Page Views

1,800,000,000

Management Estimates

CPM

18.00

Ads / Video

% of Inventory Sold

Gross Banner Ad Revenues

24,300,000

E1=A1*B1*C1*D1/1000

Ad Agency/Partner Fee Y/E %

Ad Agency/Partner % Fee

12,150,000

G1=E1*F1

Total Video Pre-Rolls Advertising Revenues

12,150,000

H1=E1-G1

Mini-Banners:

# of Page Views

1,800,000,000

CPM

5.00

Banner Ads / Page

% of Inventory Sold

Gross Mini-Banner Ad Revenues

16,200,000

E2=A2*B2*C2*D2/1000

Ad Agency/Partner Fee Y/E %

Ad Agency/Partner % Fee

8,100,000

G2=E2*F2

Total Mini-Banner Advertising Revenues

8,100,000

H2=E2-G2

Sponsored Webisodes:

# of Episodes Produced

100

Revenue / Episode

2,500

% of Inventory Sold

Gross Sponsored Webisode Ad Revenues

125,000

D3=A3*B3*C3

Ad Agency/Partner Fee Y/E %

Ad Agency/Partner % Fee

62,500

F3=D3*E3

Total Sponsored Webisodes Ad Revenues

62,500

G3=D3-F3

Sponsorship:

# of Sponsorships / Year

Life of Sponsorship (in months)

Cost of Sponsorship / Show

250,000

Total Sponsorship Revenues:

3,000,000

D4=A4*B4*C4

Total Gross Advertising Sales Revenues (before fees)

43,625,000

A5=E1+E2+D3+D4

Advertising Sales Fees (Ad Agency)

20,312,500

B5=G1+G2+F3

TOTAL ADVERTISING SALES REVENUES (net of fees)

23,312,500

C5=A5-B5

COST OF SALES

10,000

License Fee to Creator/epi

1,000,000

D7=A3*C7

TOTAL COST OF SALES

1,000,000

E7=B7+D7

SELLING GENERAL & ADMINISTRATIVE

30.00

% of Total Revenues

OTHER OPERATING EXPENSE

12,500

$5,000/minute for each 2.5-minute episode

3rd Party Production Costs

1,250,000

B8=A3*A8

Technical & Management Consulting

125,000

Marketing

500,000

Software and Technical Support

50,000

Equipment Maintenance

7,500

Site & Content Acquisition/Aggregation

300,000

Web Publishing

2,512,500

Translations

572,500

Depreciation

100,000

TOTAL OTHER OPERATING EXPENSE

5,417,500

SANLI PASTORE & HILL, INC.

122

Exhibit 23: Growth Assumptions of Video Network Division

Platinum Studios, Inc.

Video Network Division

			Year 1	Year 2			Year 3			Year 4			Year 5			Year 6			Year 7			Year 8			Year 9			Year 10			Year 11

1) TRAFFIC

Increase %
PageViews								33.33	%		17.50	%		17.50	%		10.00	%		10.00	%		10.00	%		7.50	%		7.50	%		7.50	%
Total Visitors								30.00	%		15.00	%		15.00	%		7.50	%		7.50	%		7.50	%		5.00	%		5.00	%		5.00	%

PageViews					1,800,000,000			2,400,000,000			2,820,000,000			3,313,500,000			3,644,850,000			4,009,335,000			4,410,268,500			4,741,038,638			5,096,616,535			5,478,862,775
Total Visitors					90,000,000			117,000,000			134,550,000			154,732,500			166,337,438			178,812,745			192,223,701			201,834,886			211,926,631			222,522,962

2) Capacity/Bandwidth
Cost / Visitor					0.10			0.10			0.10			0.10			0.10			0.10			0.10			0.10			0.10			0.10

3) REVENUES (See Revenues Worksheet):

Advertising Revenues:
Video Pre-Rolls
CPM Annual Growth Rate								10	%		10	%		10	%		10	%		10	%		10	%		10	%		10	%		10	%
CPM				$	18.00		$	19.80		$	21.78		$	23.96		$	26.35		$	28.99		$	31.89		$	35.08		$	38.58		$	42.44
Ads / Video					1			1			1			1			1			1			1			1			1			1
% of Inventory Sold					75.0	%		75.0	%		75.0	%		75.0	%		75.0	%		75.0	%		75.0	%		75.0	%		75.0	%		75.0	%
Ad Agency/Partner Fee Y/E %					50.0	%		50.0	%		50.0	%		50.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
*"Bugs"*
CPM Annual Growth Rate								10	%		10	%		10	%		10	%		10	%		10	%		10	%		10	%		10	%
CPM				$	5.00		$	5.50		$	6.05		$	6.66		$	7.32		$	8.05		$	8.86		$	9.74		$	10.72		$	11.79
Mini-Banner Ads / Page					3			3			3			3			3			3			3			3			3			3
% of Inventory Sold					60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%		60.0	%
Ad Agency/Partner Fee Y/E %					50.0	%		50.0	%		50.0	%		50.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
Sponsored Webisodes:
											35	%		35	%		20	%		20	%		20	%		15	%		15	%		15	%
# of Episodes Produced					60			100			135			182			218			262			314			361			415			477
Revenue/Episode Annual Growth Rate								15	%		15	%		15	%		15	%		15	%		15	%		15	%		15	%		15	%
Revenue / Episode				$	2,500		$	2,875		$	3,306		$	3,802		$	4,373		$	5,028		$	5,783		$	6,650		$	7,648		$	8,795
% of Inventory Sold					50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%		50.0	%
Ad Agency/Partner Fee Y/E %					50.0	%		50.0	%		50.0	%		50.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%		35.0	%
Sponsorship Revenue:
# of Sponsorships / Year					0			2			2			2			2			2			2			2			2			2
Life of Sponsorship (in months)					6			6			6			6			6			6			6			6			6			6
Site Sponsorship Revenues				$	250,000		$	250,000		$	250,000		$	250,000		$	250,000		$	250,000		$	250,000		$	250,000		$	250,000		$	250,000

4) COST OF SALES (COS & Op. Exp. Sheet):
Content License Fees to Creator				$	1,000,000		$	1,350,000		$	1,820,000		$	2,180,000		$	2,620,000		$	3,140,000		$	3,610,000		$	4,150,000		$	4,770,000		$	5,490,000
Web Hosting Fees				$	9,000,000		$	11,700,000		$	13,455,000		$	15,473,250		$	16,633,744		$	17,881,275		$	19,222,370		$	20,183,489		$	21,192,663		$	22,252,296

5) General and Administrative Expenses					30.0	%		29.0	%		28.0	%		27.0	%		25.0	%		24.0	%		22.0	%		22.0	%		22.0	%		22.0	%
(% of Gross Revenue)

6) OTHER OPERATING EXP. :
First Year of 3rd Party Productions	1
Inflation	3.1	%
# of Episodes Produced for 3rd party prodn					60			100			135			182			218			262			314			361			415			477
3rd Party Production Costs / Episode					12,500			12,888			13,287			13,699			14,124			14,561			15,013			15,478			15,958			16,453
Site Build/Maintenance					125,000			128,875			132,870			136,989			141,236			145,614			150,128			154,782			159,580			164,527
Marketing					500,000			515,500			531,481			547,956			564,943			582,456			600,512			619,128			638,321			658,109
Software/Tech Support, Annual					50,000			51,550			53,148			54,796			56,494			58,246			60,051			61,913			63,832			65,811
Equipment Maintenance					7,500			10,000			15,000			15,465			15,944			16,439			16,948			17,474			18,015			18,574
Site & Content Acquisition/Aggregation					300,000			309,300			318,888			328,774			338,966			349,474			360,307			371,477			382,993			394,866
Web Publishing					2,512,500			2,590,388			2,670,690			2,753,481			2,838,839			2,926,843			3,017,575			3,111,120			3,207,564			3,306,999
Translations					572,500			590,248			608,545			627,410			646,860			666,912			687,587			708,902			730,878			753,535
Depreciation					100,000			130,000			149,500			171,925			184,819			198,681			213,582			224,261			235,474			247,248

6) CAPITAL EXPENDITURES

Equipment Maint., % of Purch. Price/Yr	1.3				125,000			162,500			186,875			214,906			231,024			248,351			266,977			280,326			294,343			309,060

7) FINANCIAL, Income Statement
Tax Rate					40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%		40.0	%

SANLI PASTORE & HILL, INC.

123

Exhibit 24: Time of Revenues from Licensed Video Games

Platinum Studios, Inc.

Video Games: Licensed Video Game Division

Assumptions:

Ultimate Units Sold per Video Game Release		1,000,000

Average Price per Unit (PS3, PSP, Xbox, Wii)	$	50

Ultimate Gross Receipts	$	50,000,000

Year of Cash Flow		0			1			2			3			Total

Decay Curve of Total Gross Receipts		0	%		85	%		13	%		2	%		100	%

Total Gross Receipts	$	0		$	42,500,000		$	6,500,000		$	1,000,000		$	50,000,000

Source: www.vgchartz.com, www.npd.com, and other SP&H industry research.

SANLI PASTORE & HILL, INC.

124

Appendix A - 1

Platinum Studios, Inc.

Comic Book Adaptation Movies

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Ghost World		Comedy		MGM		7/20/2001		6,217,849		2,546,158		8,764,007		128		7,000,000		70.95	%		29.05	%		0.89		0.36		1.25
Spider-Man		Action/Adventure		Sony		5/3/2002		403,706,375		418,002,176		821,708,551		3,876		139,000,000		49.13	%		50.87	%		2.90		3.01		5.91
Spider-Man 2		Action/Adventure		Sony		6/30/2004		373,585,825		410,180,516		783,766,341		4,166		200,000,000		47.67	%		52.33	%		1.87		2.05		3.92
Spider-Man 3		Action/Adventure		Sony		5/4/2007		336,530,303		554,341,323		890,871,626		4,324		258,000,000		37.78	%		62.22	%		1.30		2.15		3.45
Batman		Action/Adventure		WB		6/23/1989		251,188,924		160,160,000		411,348,924		2,201		35,000,000		61.06	%		38.94	%		7.18		4.58		11.75
Men in Black		Action		Sony		7/2/1997		250,690,539		338,700,000		589,390,539		3,180		90,000,000		42.53	%		57.47	%		2.79		3.76		6.55
X-Men: The Last Stand		Action/Adventure		Fox		5/26/2006		234,362,462		224,893,546		459,256,008		3,714		210,000,000		51.03	%		48.97	%		1.12		1.07		2.19
X2: X-Men United		Action/Adventure		Fox		5/2/2003		214,949,694		192,607,919		407,557,613		3,749		110,000,000		52.74	%		47.26	%		1.95		1.75		3.71
300		Action		WB		3/9/2007		210,614,939		245,453,242		456,068,181		3,280		65,000,000		46.18	%		53.82	%		3.24		3.78		7.02
Batman Begins		Action/Adventure		WB		6/15/2005		205,343,774		166,510,009		371,853,783		3,858		150,000,000		55.22	%		44.78	%		1.37		1.11		2.48
Superman Returns		Action/Adventure		WB		6/28/2006		200,081,192		191,000,000		391,081,192		4,065		270,000,000		51.16	%		48.84	%		0.74		0.71		1.45
Men in Black II		Action		Sony		7/3/2002		190,418,803		251,400,000		441,818,803		3,641		140,000,000		43.10	%		56.90	%		1.36		1.80		3.16
Batman Forever		Action/Adventure		WB		6/16/1995		184,031,112		152,500,000		336,531,112		2,893		100,000,000		54.68	%		45.32	%		1.84		1.53		3.37
Batman Returns		Action/Adventure		WB		6/19/1992		162,831,698		104,000,000		266,831,698		2,644		80,000,000		61.02	%		38.98	%		2.04		1.30		3.34
X-Men		Action/Adventure		Fox		7/14/2000		157,299,717		138,950,336		296,250,053		3,112		75,000,000		53.10	%		46.90	%		2.10		1.85		3.95
Fantastic Four		Action/Adventure		Fox		7/8/2005		154,696,080		175,424,795		330,120,875		3,619		100,000,000		46.86	%		53.14	%		1.55		1.75		3.30
Teenage Mutant Ninja Turtles		Action/Adventure		NL		3/30/1990		135,265,915		66,700,000		201,965,915		2,377		13,500,000		66.97	%		33.03	%		10.02		4.94		14.96
Superman		Action/Adventure		WB		12/15/1978		134,218,018		166,000,000		300,218,018		817		55,000,000		44.71	%		55.29	%		2.44		3.02		5.46
Hulk		Action/Adventure		Uni.		6/20/2003		132,177,234		113,183,246		245,360,480		3,674		137,000,000		53.87	%		46.13	%		0.96		0.83		1.79
Fantastic Four: Rise of the Silver Surfer		Action/Adventure		Fox		6/15/2007		131,921,738		156,489,459		288,411,197		3,963		130,000,000		45.74	%		54.26	%		1.01		1.20		2.22
The Mask		Comedy		NL		7/29/1994		119,938,730		231,644,677		351,583,407		2,516		23,000,000		34.11	%		65.89	%		5.21		10.07		15.29
Ghost Rider		Action Horror		Sony		2/16/2007		115,802,596		112,935,797		228,738,393		3,620		110,000,000		50.63	%		49.37	%		1.05		1.03		2.08
Superman II		Action/Adventure		WB		6/19/1981		108,185,706		-		-		1,878		54,000,000		-			-			2.00		-		-
Batman and Robin		Action/Adventure		WB		6/20/1997		107,325,195		130,881,927		238,207,122		2,942		125,000,000		45.06	%		54.94	%		0.86		1.05		1.91
Road to Perdition		Crime Drama/Thriller		DW		7/12/2002		104,454,762		76,546,716		181,001,478		2,332		80,000,000		57.71	%		42.29	%		1.31		0.96		2.26
Dick Tracy		Action		BV		6/15/1990		103,738,726		59,000,000		162,738,726		2,332		47,000,000		63.75	%		36.25	%		2.21		1.26		3.46
Daredevil		Action/Adventure		Fox		2/14/2003		102,543,518		76,636,200		179,179,718		3,474		78,000,000		57.23	%		42.77	%		1.31		0.98		2.30
Casper		Comedy		Uni.		5/26/1995		100,328,194		187,600,000		287,928,194		2,757		55,000,000		34.84	%		65.16	%		1.82		3.41		5.24
Blade II		Action Horror		NL		3/22/2002		82,348,319		72,661,713		155,010,032		2,707		54,000,000		53.12	%		46.88	%		1.52		1.35		2.87
Teenage Mutant Ninja Turtles II		Action/Adventure		NL		3/22/1991		78,656,813		-		-		2,868		25,000,000		-			-			3.15		-		-
Constantine		Horror		WB		2/18/2005		75,976,178		154,908,550		230,884,728		3,006		100,000,000		32.91	%		67.09	%		0.76		1.55		2.31
Sin City		Crime Horror		Dim.		4/1/2005		74,103,820		84,650,000		158,753,820		3,230		40,000,000		46.68	%		53.32	%		1.85		2.12		3.97
V for Vendetta		Action Thriller		WB		3/17/2006		70,511,035		62,000,000		132,511,035		3,365		54,000,000		53.21	%		46.79	%		1.31		1.15		2.45
Blade		Action Horror		NL		8/21/1998		70,087,718		61,095,812		131,183,530		2,389		45,000,000		53.43	%		46.57	%		1.56		1.36		2.92
The League of Extraordinary Gentlemen		Adventure/Action		Fox		7/11/2003		66,465,204		112,800,000		179,265,204		3,002		78,000,000		37.08	%		62.92	%		0.85		1.45		2.30
Superman III		Action/Adventure		WB		6/17/1983		59,950,623		-		-		1,763		39,000,000		-			-			1.54		-		-
Hellboy		Action Horror		SonR		4/2/2004		59,623,958		39,695,029		99,318,987		3,043		66,000,000		60.03	%		39.97	%		0.90		0.60		1.50
Annie		Musical		Col.		5/21/1982		57,059,003		-		-		1,102		50,000,000		-			-			1.14		-		-
Spawn		Action Horror		NL		8/1/1997		54,870,175		32,969,867		87,840,042		2,604		40,000,000		62.47	%		37.53	%		1.37		0.82		2.20
TMNT		Action/Adventure		WB		3/23/2007		54,149,098		40,853,078		95,002,176		3,120		34,000,000		57.00	%		43.00	%		1.59		1.20		2.79
Blade: Trinity		Action Horror		NL		12/8/2004		52,411,906		76,493,460		128,905,366		2,912		65,000,000		40.66	%		59.34	%		0.81		1.18		1.98
Dennis the Menace		Comedy		WB		6/25/1993		51,270,765		66,000,000		117,270,765		2,085		n/a		43.72	%		56.28	%		-		-		-
The Crow		Action Horror		Mira.		5/13/1994		50,693,129		-		-		2,119		15,000,000		-			-			3.38		-		-
Popeye		Musical		Par.		12/12/1980		49,823,037		-		-		901		20,000,000		-			-			2.49		-		-
The Rocketeer		Action		BV		6/21/1991		46,704,056		-		-		1,903		40,000,000		-			-			1.17		-		-
Timecop		Action		Uni.		9/16/1994		44,853,581		56,793,000		101,646,581		2,274		28,000,000		44.13	%		55.87	%		1.60		2.03		3.63
Teenage Mutant Ninja Turtles III		Action/Adventure		NL		3/19/1993		42,273,609		-		-		2,087		21,000,000		-			-			2.01		-		-
Catwoman		Action/Adventure		WB		7/23/2004		40,202,379		41,900,000		82,102,379		3,117		100,000,000		48.97	%		51.03	%		0.40		0.42		0.82
30 Days of Night		Horror		Sony		10/19/2007		39,568,996		25,513,520		65,082,516		2,859		30,000,000		60.80	%		39.20	%		1.32		0.85		2.17
Richie Rich		Comedy		WB		12/21/1994		38,087,756		-		-		1,761		40,000,000		-			-			0.95		-		-
Judge Dredd		Action/Adventure		BV		6/30/1995		34,693,481		78,800,000		113,493,481		2,204		90,000,000		30.57	%		69.43	%		0.39		0.88		1.26
The Punisher		Action/Crime		Lions		4/16/2004		33,810,189		20,889,916		54,700,105		2,649		33,000,000		61.81	%		38.19	%		1.02		0.63		1.66
The Shadow		Action		Uni.		7/1/1994		32,063,435		16,000,000		48,063,435		1,769		40,000,000		66.71	%		33.29	%		0.80		0.40		1.20
From Hell		Horror		Fox		10/19/2001		31,602,566		42,955,549		74,558,115		2,334		35,000,000		42.39	%		57.61	%		0.90		1.23		2.13
A History of Violence		Crime Drama/Thriller		NL		9/23/2005		31,504,633		28,829,431		60,334,064		1,348		32,000,000		52.22	%		47.78	%		0.98		0.90		1.89
Mystery Men		Comedy		Uni.		8/6/1999		29,762,011		3,699,000		33,461,011		2,142		68,000,000		88.95	%		11.05	%		0.44		0.05		0.49
Flash Gordon		Action/Adventure		Uni.		12/5/1980		27,107,960		-		-		-		35,000,000		-			-			0.77		-		-
Elektra		Action/Adventure		Fox		1/14/2005		24,409,722		32,271,844		56,681,566		3,204		43,000,000		43.06	%		56.94	%		0.57		0.75		1.32
Bulletproof Monk		Action		MGM		4/16/2003		23,358,708		14,355,171		37,713,879		2,955		52,000,000		61.94	%		38.06	%		0.45		0.28		0.73
Buck Rogers in the 25th Century		Adventure		Uni.		3/30/1979		21,671,241		-		-		934		n/a		-			-			-		-		-
The Crow: City of Angels		Action Horror		Mira.		8/30/1996		17,917,287		-		-		2,423		13,000,000		-			-			1.38		-		-
The Phantom		Action		Par.		6/7/1996		17,323,326		-		-		2,163		45,000,000		-			-			0.38		-		-
Howard the Duck		Comedy		Uni.		8/1/1986		16,295,774		21,667,000		37,962,774		1,563		37,000,000		42.93	%		57.07	%		0.44		0.59		1.03
Superman IV: The Quest for Peace		Action/Adventure		WB		7/24/1987		15,681,020		-		-		1,511		17,000,000		-			-			0.92		-		-
Supergirl		Action/Adventure		TriS		11/21/1984		14,296,438		-		-		1,620		35,000,000		-			-			0.41		-		-
Josie and the Pussycats		Comedy		Uni.		4/11/2001		14,271,015		595,000		14,866,015		2,558		39,000,000		96.00	%		4.00	%		0.37		0.02		0.38
Virus		Horror		Uni.		1/15/1999		14,036,005		16,616,000		30,652,005		2,018		75,000,000		45.79	%		54.21	%		0.19		0.22		0.41
American Splendor		Comedy		FL		8/15/2003		6,010,990		1,975,094		7,986,084		272		2,000,000		75.27	%		24.73	%		3.01		0.99		3.99
Sheena		Action/Adventure		Col.		8/17/1984		5,778,353		-		-		1,496		25,000,000		-			-			0.23		-		-
Batman: Mask of the Phantasm		Animation		WB		12/25/1993		5,617,391		-		-		1,506		6,000,000		-			-			0.94		-		-
Tank Girl		Comedy		MGM		3/31/1995		4,064,495		-		-		1,363		25,000,000		-			-			0.16		-		-
Barb Wire		Action		Gram.		5/3/1996		3,793,614		-		-		1,312		n/a		-			-			-		-		-
Steel		Action/Adventure		WB		8/15/1997		1,710,972		-		-		1,260		16,000,000		-			-			0.11		-		-
Little Nemo: Adventures in Slumberland		Animation		Hemd		8/21/1992		1,368,000		-		-		579		35,000,000		-			-			0.04		-		-
Brenda Starr		Unkown		Triu		4/17/1992		67,878		-		-		48		n/a		-			-			-		-		-
Man-Thing		Unkown		Lions		N/A		n/a		-		-		-		103,400,000		-			-			-		-		-
The Green Hornet		Action/Adventure		Sony		N/A		n/a		-		-		-		585,600,000		-			-			-		-		-

Summary Statistics
	Demestic Revenues			International Revenues			Worldwide Revenues			Theaters		Budget			Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues		Demestic Revenues / Budget			International Revenues / Budget			Worldwide Revenues / Budget

Count		75			53			53			74		73			53		53		71			52			52
Min		67,878			595,000			7,986,084			48		2,000,000			0.31		0.04		0.04			0.02			0.38
LQ		25,758,841			39,695,029			82,102,379			1,765		34,000,000			0.44		0.40		0.80			0.83			1.76
Median		54,870,175			76,636,200			179,179,718			2,470		50,000,000			0.51		0.49		1.30			1.19			2.30
Mean		88,271,430			119,080,681			231,392,484			2,440		74,075,342			0.52		0.48		1.56			1.62			3.31
UQ		125,930,234			166,000,000			330,120,875			3,119		90,000,000			0.60		0.56		1.86			1.81			3.65
Max		403,706,375			554,341,323			890,871,626			4,324		585,600,000			0.96		0.69		10.02			10.07			15.29
Std Dev		88,626,346			115,220,075			204,725,854			1,002		81,601,824			0.13		0.13		1.53			1.62			3.08
*Mean + 2Std Dev**		265,524,123			349,520,830			640,844,192			4,444		237,278,991			0.78		0.73		4.63			4.85			9.47
*Mean - 2Std Dev**		(88,981,262	)		(111,359,469	)		(178,059,225	)		437		(89,128,306	)		0.27		0.22		(1.50	)		(1.61	)		(2.85	)
CV		1.00			0.97			0.88			0.41		1.10			0.24		0.27		0.98			1.00			0.93

SANLI PASTORE & HILL, INC.

125

Appendix A - 2

Platinum Studios, Inc.

Comic Book Adaptation Movies: Action - High Budget

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Bulletproof Monk		Action		MGM		4/16/2003		23,358,708		14,355,171		37,713,879		2,955		52,000,000		61.94	%		38.06	%		0.45		0.28		0.73
Superman II		Action/Adventure		WB		6/19/1981		108,185,706		-		-		1,878		54,000,000		-			-			2.00		-		-
Superman		Action/Adventure		WB		12/15/1978		134,218,018		166,000,000		300,218,018		817		55,000,000		44.71	%		55.29	%		2.44		3.02		5.46
300		Action		WB		3/9/2007		210,614,939		245,453,242		456,068,181		3,280		65,000,000		46.18	%		53.82	%		3.24		3.78		7.02
X-Men		Action/Adventure		Fox		7/14/2000		157,299,717		138,950,336		296,250,053		3,112		75,000,000		53.10	%		46.90	%		2.10		1.85		3.95
Daredevil		Action/Adventure		Fox		2/14/2003		102,543,518		76,636,200		179,179,718		3,474		78,000,000		57.23	%		42.77	%		1.31		0.98		2.30
The League of Extraordinary Gentlemen		Adventure/Action		Fox		7/11/2003		66,465,204		112,800,000		179,265,204		3,002		78,000,000		37.08	%		62.92	%		0.85		1.45		2.30
Batman Returns		Action/Adventure		WB		6/19/1992		162,831,698		104,000,000		266,831,698		2,644		80,000,000		61.02	%		38.98	%		2.04		1.30		3.34
Judge Dredd		Action/Adventure		BV		6/30/1995		34,693,481		78,800,000		113,493,481		2,204		90,000,000		30.57	%		69.43	%		0.39		0.88		1.26
Men in Black		Action		Sony		7/2/1997		250,690,539		338,700,000		589,390,539		3,180		90,000,000		42.53	%		57.47	%		2.79		3.76		6.55
Batman Forever		Action/Adventure		WB		6/16/1995		184,031,112		152,500,000		336,531,112		2,893		100,000,000		54.68	%		45.32	%		1.84		1.53		3.37
Catwoman		Action/Adventure		WB		7/23/2004		40,202,379		41,900,000		82,102,379		3,117		100,000,000		48.97	%		51.03	%		0.40		0.42		0.82
Fantastic Four		Action/Adventure		Fox		7/8/2005		154,696,080		175,424,795		330,120,875		3,619		100,000,000		46.86	%		53.14	%		1.55		1.75		3.30
X2: X-Men United		Action/Adventure		Fox		5/2/2003		214,949,694		192,607,919		407,557,613		3,749		110,000,000		52.74	%		47.26	%		1.95		1.75		3.71
Batman and Robin		Action/Adventure		WB		6/20/1997		107,325,195		130,881,927		238,207,122		2,942		125,000,000		45.06	%		54.94	%		0.86		1.05		1.91
Fantastic Four: Rise of the Silver Surfer		Action/Adventure		Fox		6/15/2007		131,921,738		156,489,459		288,411,197		3,963		130,000,000		45.74	%		54.26	%		1.01		1.20		2.22
Hulk		Action/Adventure		Uni.		6/20/2003		132,177,234		113,183,246		245,360,480		3,674		137,000,000		53.87	%		46.13	%		0.96		0.83		1.79
Spider-Man		Action/Adventure		Sony		5/3/2002		403,706,375		418,002,176		821,708,551		3,876		139,000,000		49.13	%		50.87	%		2.90		3.01		5.91
Men in Black II		Action		Sony		7/3/2002		190,418,803		251,400,000		441,818,803		3,641		140,000,000		43.10	%		56.90	%		1.36		1.80		3.16
Batman Begins		Action/Adventure		WB		6/15/2005		205,343,774		166,510,009		371,853,783		3,858		150,000,000		55.22	%		44.78	%		1.37		1.11		2.48
Spider-Man 2		Action/Adventure		Sony		6/30/2004		373,585,825		410,180,516		783,766,341		4,166		200,000,000		47.67	%		52.33	%		1.87		2.05		3.92
X-Men: The Last Stand		Action/Adventure		Fox		5/26/2006		234,362,462		224,893,546		459,256,008		3,714		210,000,000		51.03	%		48.97	%		1.12		1.07		2.19
Spider-Man 3		Action/Adventure		Sony		5/4/2007		336,530,303		554,341,323		890,871,626		4,324		258,000,000		37.78	%		62.22	%		1.30		2.15		3.45
Superman Returns		Action/Adventure		WB		6/28/2006		200,081,192		191,000,000		391,081,192		4,065		270,000,000		51.16	%		48.84	%		0.74		0.71		1.45
The Green Hornet		Action/Adventure		Sony		N/A		n/a		-		-		-		585,600,000		-			-			-		-		-

Summary Statistics
	Demestic Revenues			International Revenues			Worldwide Revenues			Theaters		Budget			Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues		Demestic Revenues / Budget			International Revenues / Budget			Worldwide Revenues / Budget

Count		24			23			23			24		25			23		23		24			23			23
Min		23,358,708			14,355,171			37,713,879			817		52,000,000			0.31		0.38		0.39			0.28			0.73
LQ		107,970,578			112,991,623			241,783,801			2,952		78,000,000			0.45		0.47		0.94			1.01			2.05
Median		160,065,708			166,000,000			330,120,875			3,377		100,000,000			0.49		0.51		1.36			1.45			3.16
Mean		173,343,071			193,696,081			369,872,081			3,256		138,864,000			0.49		0.51		1.54			1.64			3.15
UQ		211,698,628			235,173,394			448,943,492			3,776		140,000,000			0.53		0.55		2.01			1.95			3.81
Max		403,706,375			554,341,323			890,871,626			4,324		585,600,000			0.62		0.69		3.24			3.78			7.02
Std Dev		98,886,637			129,738,464			224,841,738			796		110,394,953			0.08		0.08		0.80			0.97			1.73
*Mean + 2Std Dev**		371,116,345			453,173,009			819,555,556			4,849		359,653,907			0.64		0.67		3.13			3.57			6.62
*Mean - 2Std Dev**		(24,430,204	)		(65,780,847	)		(79,811,395	)		1,663		(81,925,907	)		0.33		0.36		(0.06	)		(0.29	)		(0.31	)
CV		0.57			0.67			0.61			0.24		0.79			0.16		0.15		0.52			0.59			0.55

SANLI PASTORE & HILL, INC.

126

Appendix A - 3

Platinum Studios, Inc.

Comic Book Adaptation Movies: Comedy - High Budget

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Richie Rich		Comedy		WB		12/21/1994		38,087,756		-		-		1,761		40,000,000		-			-			0.95		-		-
Casper		Comedy		Uni.		5/26/1995		100,328,194		187,600,000		287,928,194		2,757		55,000,000		34.84	%		65.16	%		1.82		3.41		5.24
Mystery Men		Comedy		Uni.		8/6/1999		29,762,011		3,699,000		33,461,011		2,142		68,000,000		88.95	%		11.05	%		0.44		0.05		0.49

Summary Statistics

	Demestic Revenues			International Revenues			Worldwide Revenues			Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget			International Revenues / Budget			Worldwide Revenues / Budget
Count		3			2			2			3		3		2			2			3			2			2
Min		29,762,011			3,699,000			33,461,011			1,761		40,000,000		0.35			0.11			0.44			0.05			0.49
LQ		33,924,884			49,674,250			97,077,807			1,952		47,500,000		0.48			0.25			0.69			0.89			1.68
Median		38,087,756			95,649,500			160,694,603			2,142		55,000,000		0.62			0.38			0.95			1.73			2.86
Mean		56,059,320			95,649,500			160,694,603			2,220		54,333,333		0.62			0.38			1.07			1.73			2.86
UQ		69,207,975			141,624,750			224,311,398			2,450		61,500,000		0.75			0.52			1.39			2.57			4.05
Max		100,328,194			187,600,000			287,928,194			2,757		68,000,000		0.89			0.65			1.82			3.41			5.24
Std Dev		38,563,317			130,037,644			179,935,471			503		14,011,900		0.38			0.38			0.70			2.37			3.35
*Mean + 2Std Dev**		133,185,954			355,724,788			520,565,544			3,225		82,357,133		1.38			1.15			2.47			6.48			9.57
*Mean - 2Std Dev**		(21,067,313	)		(164,425,788	)		(199,176,339	)		1,215		26,309,534		(0.15	)		(0.38	)		(0.33	)		(3.01	)		(3.84	)
CV		0.69			1.36			1.12			0.23		0.26		0.62			1.00			0.65			1.37			1.17

SANLI PASTORE & HILL, INC.

127

Appendix A - 4

Platinum Studios, Inc.

Comic Book Adaptation Movies: Thriller - High Budget

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Blade II		Action Horror		NL		3/22/2002		82,348,319		72,661,713		155,010,032		2,707		54,000,000		53.12	%		46.88	%		1.52		1.35		2.87
V for Vendetta		Action Thriller		WB		3/17/2006		70,511,035		62,000,000		132,511,035		3,365		54,000,000		53.21	%		46.79	%		1.31		1.15		2.45
Blade: Trinity		Action Horror		NL		12/8/2004		52,411,906		76,493,460		128,905,366		2,912		65,000,000		40.66	%		59.34	%		0.81		1.18		1.98
Hellboy		Action Horror		SonR		4/2/2004		59,623,958		39,695,029		99,318,987		3,043		66,000,000		60.03	%		39.97	%		0.90		0.60		1.50
Road to Perdition		Crime Drama/Thriller		DW		7/12/2002		104,454,762		76,546,716		181,001,478		2,332		80,000,000		57.71	%		42.29	%		1.31		0.96		2.26
Ghost Rider		Action Horror		Sony		2/16/2007		115,802,596		112,935,797		228,738,393		3,620		110,000,000		50.63	%		49.37	%		1.05		1.03		2.08

Summary Statistics
	Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues		Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Count		6		6		6		6		6		6		6		6		6		6
Min		52,411,906		39,695,029		99,318,987		2,332		54,000,000		0.41		0.40		0.81		0.60		1.50
LQ		62,345,727		64,665,428		129,806,783		2,758		56,750,000		0.51		0.43		0.94		0.97		2.01
Median		76,429,677		74,577,587		143,760,534		2,978		65,500,000		0.53		0.47		1.18		1.09		2.17
Mean		80,858,763		73,388,786		154,247,549		2,997		71,500,000		0.53		0.47		1.15		1.04		2.19
UQ		98,928,151		76,533,402		174,503,617		3,285		76,500,000		0.57		0.49		1.31		1.17		2.41
Max		115,802,596		112,935,797		228,738,393		3,620		110,000,000		0.60		0.59		1.52		1.35		2.87
Std Dev		25,088,952		23,870,819		45,600,634		460		21,163,648		0.07		0.07		0.27		0.25		0.46
*Mean + 2Std Dev**		131,036,666		121,130,423		245,448,817		3,917		113,827,296		0.66		0.61		1.70		1.55		3.11
*Mean - 2Std Dev**		30,680,859		25,647,148		63,046,280		2,076		29,172,704		0.39		0.34		0.60		0.53		1.27
CV		0.31		0.33		0.30		0.15		0.30		0.13		0.14		0.24		0.24		0.21

SANLI PASTORE & HILL, INC.

128

Appendix A - 5

Platinum Studios, Inc.

Comic Book Adaptation Movies: Action - Low Budget

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Teenage Mutant Ninja Turtles		Action/Adventure		NL		3/30/1990		135,265,915		66,700,000		201,965,915		2,377		13,500,000		66.97	%		33.03	%		n/a		4.94		14.96
Steel		Action/Adventure		WB		8/15/1997		1,710,972		-		-		1,260		16,000,000		-			-			0.11		-		-
Superman IV: The Quest for Peace		Action/Adventure		WB		7/24/1987		15,681,020		-		-		1,511		17,000,000		-			-			0.92		-		-
Teenage Mutant Ninja Turtles III		Action/Adventure		NL		3/19/1993		42,273,609		-		-		2,087		21,000,000		-			-			2.01		-		-
Sheena		Action/Adventure		Col.		8/17/1984		5,778,353		-		-		1,496		25,000,000		-			-			0.23		-		-
Teenage Mutant Ninja Turtles II		Action/Adventure		NL		3/22/1991		78,656,813		-		-		2,868		25,000,000		-			-			3.15		-		-
Timecop		Action		Uni.		9/16/1994		44,853,581		56,793,000		101,646,581		2,274		28,000,000		44.13	%		55.87	%		1.60		2.03		3.63
The Punisher		Action/Crime		Lions		4/16/2004		33,810,189		20,889,916		54,700,105		2,649		33,000,000		61.81	%		38.19	%		1.02		0.63		1.66
TMNT		Action/Adventure		WB		3/23/2007		54,149,098		40,853,078		95,002,176		3,120		34,000,000		57.00	%		43.00	%		1.59		1.20		2.79
Flash Gordon		Action/Adventure		Uni.		12/5/1980		27,107,960		-		-		-		35,000,000		-			-			0.77		-		-
Batman		Action/Adventure		WB		6/23/1989		251,188,924		160,160,000		411,348,924		2,201		35,000,000		61.06	%		38.94	%		7.18		4.58		11.75
Supergirl		Action/Adventure		TriS		11/21/1984		14,296,438		-		-		1,620		35,000,000		-			-			0.41		-		-
Superman III		Action/Adventure		WB		6/17/1983		59,950,623		-		-		1,763		39,000,000		-			-			1.54		-		-
Sin City		Crime Horror		Dim.		4/1/2005		74,103,820		84,650,000		158,753,820		3,230		40,000,000		46.68	%		53.32	%		1.85		2.12		3.97
The Rocketeer		Action		BV		6/21/1991		46,704,056		-		-		1,903		40,000,000		-			-			1.17		-		-
The Shadow		Action		Uni.		7/1/1994		32,063,435		16,000,000		48,063,435		1,769		40,000,000		66.71	%		33.29	%		0.80		0.40		1.20
Elektra		Action/Adventure		Fox		1/14/2005		24,409,722		32,271,844		56,681,566		3,204		43,000,000		43.06	%		56.94	%		0.57		0.75		1.32
The Phantom		Action		Par.		6/7/1996		17,323,326		-		-		2,163		45,000,000		-			-			0.38		-		-
Dick Tracy		Action		BV		6/15/1990		103,738,726		59,000,000		162,738,726		2,332		47,000,000		63.75	%		36.25	%		2.21		1.26		3.46

Summary Statistics
	Demestic Revenues			International Revenues			Worldwide Revenues			Theaters		Budget		Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues		Demestic Revenues / Budget			International Revenues / Budget			Worldwide Revenues / Budget

Count		19			9			9			18		19		9		9		18			9			9
Min		1,710,972			16,000,000			48,063,435			1,260		13,500,000		0.43		0.33		0.11			0.40			1.20
LQ		20,866,524			32,271,844			56,681,566			1,765		25,000,000		0.47		0.36		0.62			0.75			1.66
Median		42,273,609			56,793,000			101,646,581			2,182		35,000,000		0.61		0.39		1.10			1.26			3.46
Mean		55,950,873			59,701,982			143,433,472			2,213		32,184,211		0.57		0.43		1.53			1.99			4.97
UQ		67,027,222			66,700,000			162,738,726			2,581		40,000,000		0.64		0.53		1.79			2.12			3.97
Max		251,188,924			160,160,000			411,348,924			3,230		47,000,000		0.67		0.57		7.18			4.94			14.96
Std Dev		58,284,824			43,726,533			114,235,953			608		10,125,889		0.10		0.10		1.62			1.68			4.93
*Mean + 2Std Dev**		172,520,520			147,155,048			371,905,379			3,429		52,435,988		0.76		0.63		4.76			5.34			14.82
*Mean - 2Std Dev**		(60,618,775	)		(27,751,084	)		(85,038,435	)		997		11,932,433		0.37		0.24		(1.70	)		(1.36	)		(4.88	)
CV		1.04			0.73			0.80			0.27		0.31		0.17		0.22		1.06			0.84			0.99

SANLI PASTORE & HILL, INC.

129

Appendix A - 6

Platinum Studios, Inc.

Comic Book Adaptation Movies: Comedy - Low Budget

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Ghost World		Comedy		MGM		7/20/2001		6,217,849		2,546,158		8,764,007		128		7,000,000		70.95	%		29.05	%		0.89		0.36		1.25
American Splendor		Comedy		FL		8/15/2003		6,010,990		1,975,094		7,986,084		272		2,000,000		75.27	%		24.73	%		3.01		0.99		3.99
The Mask		Comedy		NL		7/29/1994		119,938,730		231,644,677		351,583,407		2,516		23,000,000		34.11	%		65.89	%		5.21		n/a		15.29
Tank Girl		Comedy		MGM		3/31/1995		4,064,495		-		-		1,363		25,000,000		-			-			0.16		-		-
Howard the Duck		Comedy		Uni.		8/1/1986		16,295,774		21,667,000		37,962,774		1,563		37,000,000		42.93	%		57.07	%		0.44		0.59		1.03
Josie and the Pussycats		Comedy		Uni.		4/11/2001		14,271,015		595,000		14,866,015		2,558		39,000,000		96.00	%		4.00	%		0.37		0.02		0.38

Summary Statistics
	Demestic Revenues			International Revenues			Worldwide Revenues			Theaters			Budget			Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues			Demestic Revenues / Budget			International Revenues / Budget			Worldwide Revenues / Budget

Count		6			5			5			6			6			5		5			6			4			5
Min		4,064,495			595,000			7,986,084			128			2,000,000			0.34		0.04			0.16			0.02			0.38
LQ		6,062,705			1,975,094			8,764,007			545			11,000,000			0.43		0.25			0.38			0.28			1.03
Median		10,244,432			2,546,158			14,866,015			1,463			24,000,000			0.71		0.29			0.66			0.47			1.25
Mean		27,799,809			51,685,586			84,232,457			1,400			22,166,667			0.64		0.36			1.68			0.49			4.39
UQ		15,789,584			21,667,000			37,962,774			2,278			34,000,000			0.75		0.57			2.48			0.69			3.99
Max		119,938,730			231,644,677			351,583,407			2,558			39,000,000			0.96		0.66			5.21			0.99			15.29
Std Dev		45,406,719			100,973,331			149,948,419			1,049			15,158,056			0.25		0.25			2.02			0.41			6.25
*Mean + 2Std Dev**		118,613,247			253,632,248			384,129,296			3,499			52,482,779			1.14		0.87			5.72			1.30			16.88
*Mean - 2Std Dev**		(63,013,629	)		(150,261,076	)		(215,664,381	)		(699	)		(8,149,446	)		0.13		(0.14	)		(2.36	)		(0.33	)		(8.11	)
CV		1.63			1.95			1.78			0.75			0.68			0.39		0.70			1.20			0.83			1.42

SANLI PASTORE & HILL, INC.

130

Appendix A - 7

Platinum Studios, Inc.

Comic Book Adaptation Movies: Thriller - Low Budget

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

The Crow: City of Angels		Action Horror		Mira.		8/30/1996		17,917,287		-		-		2,423		13,000,000		-			-			1.38		-		-
The Crow		Action Horror		Mira.		5/13/1994		50,693,129		-		-		2,119		15,000,000		-			-			3.38		-		-
A History of Violence		Crime Drama/Thriller		NL		9/23/2005		31,504,633		28,829,431		60,334,064		1,348		32,000,000		52.22	%		47.78	%		0.98		0.90		1.89
Spawn		Action Horror		NL		8/1/1997		54,870,175		32,969,867		87,840,042		2,604		40,000,000		62.47	%		37.53	%		1.37		0.82		2.20
Blade		Action Horror		NL		8/21/1998		70,087,718		61,095,812		131,183,530		2,389		45,000,000		53.43	%		46.57	%		1.56		1.36		2.92

Summary Statistics
	Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues		Demestic Revenues / Budget			International Revenues / Budget		Worldwide Revenues / Budget

Count		5		3		3		5		5		3		3		5			3		3
Min		17,917,287		28,829,431		60,334,064		1,348		13,000,000		0.52		0.38		0.98			0.82		1.89
LQ		31,504,633		30,899,649		74,087,053		2,119		15,000,000		0.53		0.42		1.37			0.86		2.04
Median		50,693,129		32,969,867		87,840,042		2,389		32,000,000		0.53		0.47		1.38			0.90		2.20
Mean		45,014,588		40,965,037		93,119,212		2,177		29,000,000		0.56		0.44		1.73			1.03		2.33
UQ		54,870,175		47,032,840		109,511,786		2,423		40,000,000		0.58		0.47		1.56			1.13		2.56
Max		70,087,718		61,095,812		131,183,530		2,604		45,000,000		0.62		0.48		3.38			1.36		2.92
Std Dev		20,462,300		17,556,249		35,718,538		495		14,474,115		0.06		0.06		0.94			0.29		0.53
*Mean + 2Std Dev**		85,939,188		76,077,535		164,556,287		3,166		57,948,230		0.67		0.55		3.62			1.60		3.39
*Mean - 2Std Dev**		4,089,989		5,852,538		21,682,137		1,187		51,770		0.45		0.33		(0.15	)		0.45		1.28
CV		0.45		0.43		0.38		0.23		0.50		0.10		0.13		0.54			0.28		0.23

SANLI PASTORE & HILL, INC.

131

Appendix A - 8

Platinum Studios, Inc.

Comic Book Adaptation Movies: Horror

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

30 Days of Night		Horror		Sony		10/19/2007		39,568,996		25,513,520		65,082,516		2,859		30,000,000		60.80	%		39.20	%		1.32		0.85		2.17
From Hell		Horror		Fox		10/19/2001		31,602,566		42,955,549		74,558,115		2,334		35,000,000		42.39	%		57.61	%		0.90		1.23		2.13
Virus		Horror		Uni.		1/15/1999		14,036,005		16,616,000		30,652,005		2,018		75,000,000		45.79	%		54.21	%		0.19		0.22		0.41
Constantine		Horror		WB		2/18/2005		75,976,178		154,908,550		230,884,728		3,006		100,000,000		32.91	%		67.09	%		0.76		1.55		2.31

Summary Statistics
	Demestic Revenues			International Revenues			Worldwide Revenues			Theaters		Budget			Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues		Demestic Revenues / Budget			International Revenues / Budget			Worldwide Revenues / Budget

Count		4			4			4			4		4			4		4		4			4			4
Min		14,036,005			16,616,000			30,652,005			2,018		30,000,000			0.33		0.39		0.19			0.22			0.41
LQ		27,210,926			23,289,140			56,474,888			2,255		33,750,000			0.40		0.50		0.62			0.69			1.70
Median		35,585,781			34,234,535			69,820,316			2,597		55,000,000			0.44		0.56		0.83			1.04			2.15
Mean		40,295,936			59,998,405			100,294,341			2,554		60,000,000			0.45		0.55		0.79			0.96			1.75
UQ		48,670,792			70,943,799			113,639,768			2,896		81,250,000			0.50		0.60		1.01			1.31			2.20
Max		75,976,178			154,908,550			230,884,728			3,006		100,000,000			0.61		0.67		1.32			1.55			2.31
Std Dev		26,068,926			64,212,239			89,080,731			459		33,416,563			0.12		0.12		0.47			0.57			0.90
*Mean + 2Std Dev**		92,433,789			188,422,883			278,455,804			3,473		126,833,126			0.69		0.78		1.73			2.10			3.55
*Mean - 2Std Dev**		(11,841,917	)		(68,426,073	)		(77,867,122	)		1,636		(6,833,126	)		0.22		0.31		(0.14	)		(0.18	)		(0.05	)
CV		0.65			1.07			0.89			0.18		0.56			0.25		0.21		0.59			0.59			0.51

SANLI PASTORE & HILL, INC.

132

Appendix A - 9

Platinum Studios, Inc.

Comic Book Adaptation Movies: Low Budget All Genres

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Title	Genre		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Ghost World		Comedy		MGM		7/20/2001		6,217,849		2,546,158		8,764,007		128		7,000,000		70.95	%		29.05	%		0.89		0.36		1.25
American Splendor		Comedy		FL		8/15/2003		6,010,990		1,975,094		7,986,084		272		2,000,000		75.27	%		24.73	%		3.01		0.99		3.99
Batman: Mask of the Phantasm		Animation		WB		12/25/1993		5,617,391		-		-		1,506		6,000,000		-			-			0.94		-		-
The Crow: City of Angels		Action Horror		Mira.		8/30/1996		17,917,287		-		-		2,423		13,000,000		-			-			1.38		-		-
Teenage Mutant Ninja Turtles		Action/Adventure		NL		3/30/1990		135,265,915		66,700,000		201,965,915		2,377		13,500,000		66.97	%		33.03	%		n/a		n/a		14.96
The Crow		Action Horror		Mira.		5/13/1994		50,693,129		-		-		2,119		15,000,000		-			-			3.38		-		-
Steel		Action/Adventure		WB		8/15/1997		1,710,972		-		-		1,260		16,000,000		-			-			0.11		-		-
Superman IV: The Quest for Peace		Action/Adventure		WB		7/24/1987		15,681,020		-		-		1,511		17,000,000		-			-			0.92		-		-
Popeye		Musical		Par.		12/12/1980		49,823,037		-		-		901		20,000,000		-			-			2.49		-		-
Teenage Mutant Ninja Turtles III		Action/Adventure		NL		3/19/1993		42,273,609		-		-		2,087		21,000,000		-			-			2.01		-		-
The Mask		Comedy		NL		7/29/1994		119,938,730		231,644,677		351,583,407		2,516		23,000,000		34.11	%		65.89	%		5.21		n/a		15.29
Teenage Mutant Ninja Turtles II		Action/Adventure		NL		3/22/1991		78,656,813		-		-		2,868		25,000,000		-			-			3.15		-		-
Sheena		Action/Adventure		Col.		8/17/1984		5,778,353		-		-		1,496		25,000,000		-			-			0.23		-		-
Tank Girl		Comedy		MGM		3/31/1995		4,064,495		-		-		1,363		25,000,000		-			-			0.16		-		-
Timecop		Action		Uni.		9/16/1994		44,853,581		56,793,000		101,646,581		2,274		28,000,000		44.13	%		55.87	%		1.60		n/a		3.63
30 Days of Night		Horror		Sony		10/19/2007		39,568,996		25,513,520		65,082,516		2,859		30,000,000		60.80	%		39.20	%		1.32		0.85		2.17
A History of Violence		Crime Drama/Thriller		NL		9/23/2005		31,504,633		28,829,431		60,334,064		1,348		32,000,000		52.22	%		47.78	%		0.98		0.90		1.89
The Punisher		Action/Crime		Lions		4/16/2004		33,810,189		20,889,916		54,700,105		2,649		33,000,000		61.81	%		38.19	%		1.02		0.63		1.66
TMNT		Action/Adventure		WB		3/23/2007		54,149,098		40,853,078		95,002,176		3,120		34,000,000		57.00	%		43.00	%		1.59		1.20		2.79

Summary Statistics
	Demestic Revenues			International Revenues			Worldwide Revenues			Theaters		Budget		Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues		Demestic Revenues / Budget			International Revenues / Budget		Worldwide Revenues / Budget

Count		19			9			9			19		19		9		9		18			6		9
Min		1,710,972			1,975,094			7,986,084			128		2,000,000		0.34		0.25		0.11			0.36		1.25
LQ		6,114,420			20,889,916			54,700,105			1,356		14,250,000		0.52		0.33		0.93			0.69		1.89
Median		33,810,189			28,829,431			65,082,516			2,087		21,000,000		0.61		0.39		1.35			0.88		2.79
Mean		39,133,478			52,860,542			105,229,428			1,846		20,289,474		0.58		0.42		1.69			0.82		5.29
UQ		50,258,083			56,793,000			101,646,581			2,470		26,500,000		0.67		0.48		2.37			0.97		3.99
Max		135,265,915			231,644,677			351,583,407			3,120		34,000,000		0.75		0.66		5.21			1.20		15.29
Std Dev		37,993,090			70,518,864			109,034,450			857		9,388,699		0.13		0.13		1.32			0.29		5.65
*Mean + 2Std Dev**		115,119,658			193,898,270			323,298,329			3,560		39,066,871		0.84		0.68		4.34			1.41		16.58
*Mean - 2Std Dev**		(36,852,702	)		(88,177,187	)		(112,839,472	)		132		1,512,077		0.32		0.16		(0.96	)		0.24		(6.00	)
CV		0.97			1.33			1.04			0.46		0.46		0.22		0.31		0.78			0.35		1.07

SANLI PASTORE & HILL, INC.

133

Appendix B

Platinum Studios, Inc.

Horror Movies

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Type	Title		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Horror - Comedy		Black Sheep (2007)		IFC		6/22/2007	$	84,283		4,377,321		4,461,604		8		n/a		1.89	%		98.11	%		-		-		-
Horror - Terror in the water		Open Water		Lions		8/6/2004	$	30,610,863		24,057,091		54,667,954		2,709		500,000		55.99	%		44.01	%		61.22		48.11		109.34
SCI-FI Horror		Re-Animator		EP		10/18/1985	$	2,023,414		-		-		185		900,000		-			-			2.25		-		-
Horror - Comedy		Re-Animator		EP		10/18/1985	$	2,023,414		-		-		185		900,000		-			-			-		-		-
Horror - Torture		Saw		Lions		10/29/2004	$	55,185,045		47,911,300		103,096,345		2,467		1,200,000		53.53	%		46.47	%		45.99		39.93		85.91
Horror - Comedy		Parents		Vest		1/27/1989	$	870,532		-		-		94		3,000,000		-			-			-		-		-
Horror - Torture		Saw II		Lions		10/28/2005	$	87,039,965		60,700,000		147,739,965		2,949		4,000,000		58.91	%		41.09	%		21.76		15.18		36.93
Horror - Torture		Hostel		Lions		1/6/2006	$	47,326,473		33,252,461		80,578,934		2,337		4,800,000		58.73	%		41.27	%		-		-		-
Horror - Anthology		Snoop Dogg's Hood of Horror		Xen.		5/4/2007	$	25,900		-		-		117		5,000,000		-			-			0.01		-		-
Horror - Terror in the water		Jaws		Uni.		6/20/1975	$	260,000,000		210,653,000		470,653,000		675		7,000,000		55.24	%		44.76	%		37.14		30.09		67.24
Horror - Torture		House of 1,000 Corpses		Lions		4/11/2003	$	12,634,962		4,194,583		16,829,545		847		7,000,000		75.08	%		24.92	%		1.80		0.60		2.40
Horror - Torture		The Devil's Rejects		Lions		7/22/2005	$	17,044,981		2,345,048		19,390,029		1,757		7,000,000		87.91	%		12.09	%		2.43		0.34		2.77
Horror - Torture		The Texas Chainsaw Massacre		NL		10/17/2003	$	80,571,655		26,500,000		107,071,655		3,018		9,500,000		75.25	%		24.75	%		-		-		-
Horror - Torture		Saw III		LGF		10/27/2006	$	80,238,724		84,635,551		164,874,275		3,167		10,000,000		48.67	%		51.33	%		8.02		8.46		16.49
Horror - Torture		Turistas		FoxA		12/1/2006	$	7,027,762		7,293,308		14,321,070		1,572		10,000,000		49.07	%		50.93	%		0.70		0.73		1.43
Horror - Remake		The Grudge		Sony		10/22/2004	$	110,359,362		76,921,753		187,281,115		3,348		10,000,000		58.93	%		41.07	%		11.04		7.69		18.73
Horror - Torture		Hostel Part II		LGF		6/8/2007	$	17,609,452		18,010,069		35,619,521		2,350		10,200,000		49.44	%		50.56	%		1.73		1.77		3.49
SCI-FI Horror		Alien		Fox		5/25/1979	$	80,931,801		24,000,000		104,931,801		757		11,000,000		77.13	%		22.87	%		7.36		2.18		9.54
SCI-FI Horror		Jason X		NL		4/26/2002	$	13,121,555		3,830,243		16,951,798		1,879		11,000,000		-			-			-		-		-
Horror - Comedy		Seed of Chucky		Rog.		11/12/2004	$	17,083,732		7,745,912		24,829,644		2,062		12,000,000		68.80	%		31.20	%		1.42		0.65		2.07
Horror - Period		Ravenous		Fox		3/19/1999	$	2,062,405		-		-		1,040		12,000,000		-			-			0.17		-		-
Horror - Period		An American Haunting		Free		5/5/2006	$	16,298,046		11,174,455		27,472,501		1,703		14,000,000		-			-			1.16		0.80		-
Horror - Remake		The Hills Have Eyes 2		FoxA		3/23/2007	$	20,804,166		16,651,361		37,455,527		2,465		15,000,000		55.54	%		44.46	%		1.39		1.11		2.50
Horror - Torture		The Hills Have Eyes		FoxS		3/10/2006	$	41,778,863		27,791,169		69,570,032		2,621		15,000,000		60.05	%		39.95	%		-		-		-
Horror - Comedy		Slither		Uni.		3/31/2006	$	7,802,450		4,453,340		12,255,790		1,946		15,000,000		63.66	%		36.34	%		0.52		0.30		0.82
Horror - Remake		When a Stranger Calls		SGem		2/3/2006	$	47,860,214		19,106,773		66,966,987		3,004		15,000,000		71.47	%		28.53	%		3.19		1.27		4.46
Horror - Torture		The Texas Chainsaw Massacre: The Beginning		NL		10/6/2006	$	39,517,763		12,168,200		51,685,963		2,820		16,000,000		76.46	%		23.54	%		-		-		-
Horror - Period		The Others		Mira.		8/10/2001	$	96,522,687		113,424,350		209,947,037		2,843		17,000,000		45.97	%		54.03	%		5.68		6.67		12.35
Horror - Remake		The Fog		SonR		10/14/2005	$	29,550,869		16,650,563		46,201,432		2,972		18,000,000		63.96	%		36.04	%		1.64		0.93		2.57
Horror - Torture		Vacancy		SGem		4/20/2007	$	19,363,565		15,925,771		35,289,336		2,551		19,000,000		54.87	%		45.13	%		-		-		-
Horror - Comedy		Scary Movie		Mira.		7/7/2000	$	157,019,771		121,000,000		278,019,771		3,301		19,000,000		56.48	%		43.52	%		8.26		6.37		14.63
Horror - Remake		The Amityville Horror (2005)		MGM		4/15/2005	$	65,233,369		42,813,762		108,047,131		3,323		19,000,000		60.37	%		39.63	%		3.43		2.25		5.69
Horror - Terror in the water		Anacondas: The Hunt for the Blood Orchid		SGem		8/27/2004	$	32,238,923		38,753,975		70,992,898		2,905		20,000,000		45.41	%		54.59	%		-		-		-
Horror - Remake		The Grudge 2		Sony		10/13/2006	$	39,143,839		31,567,336		70,711,175		3,214		20,000,000		55.36	%		44.64	%		1.96		1.58		3.54
Horror - Remake		Willard		NL		3/14/2003	$	6,886,089		1,660,577		8,546,666		1,762		20,000,000		80.57	%		19.43	%		0.34		0.08		0.43
Horror - Remake		Pulse		W/Dim.		8/11/2006	$	20,264,436		9,507,049		29,771,485		2,323		20,500,000		68.07	%		31.93	%		0.99		0.46		1.45
SCI-FI Horror		Pitch Black		USA		2/18/2000	$	39,240,659		13,947,000		53,187,659		1,930		23,000,000		73.78	%		26.22	%		1.71		0.61		2.31
Horror - Remake		The Omen (2006)		Fox		6/6/2006	$	54,607,383		64,891,526		119,498,909		2,723		25,000,000		45.70	%		54.30	%		2.18		2.60		4.78
Horror - Comedy		Bride of Chucky		Uni.		10/16/1998	$	32,383,850		18,288,000		50,671,850		2,467		25,000,000		63.91	%		36.09	%		1.30		0.73		2.03
Horror - Comedy		An American Werewolf in Paris		BV		12/25/1997	$	26,570,463		-		-		1,731		25,000,000		-			-			1.06		-		-
Horror - Remake		Dawn of the Dead		Uni.		3/19/2004	$	59,020,957		43,335,424		102,356,381		2,748		26,000,000		57.66	%		42.34	%		2.27		1.67		3.94
Horror - Comedy		Eight Legged Freaks		WB		7/17/2002	$	17,322,606		28,544,727		45,867,333		2,530		30,000,000		37.77	%		62.23	%		0.58		0.95		1.53
Horror - Comedy		Ghostbusters		Col.		6/8/1984	$	238,632,124		53,000,000		291,632,124		1,506		30,000,000		81.83	%		18.17	%		7.95		1.77		9.72
SCI-FI Horror		Mimic		Mira.		8/22/1997	$	25,480,490		-		-		2,255		30,000,000		-			-			0.85		-		-
SCI-FI Horror		Resident Evil		SGem		3/15/2002	$	40,119,709		62,321,369		102,441,078		2,528		33,000,000		39.16	%		60.84	%		1.22		1.89		3.10
Horror - Comedy		Snakes on a Plane		NL		8/18/2006	$	34,020,814		28,001,200		62,022,014		3,555		33,000,000		54.85	%		45.15	%		1.03		0.85		1.88
Horror - Period		From Hell		Fox		10/19/2001	$	31,602,566		42,955,549		74,558,115		2,334		35,000,000		42.39	%		57.61	%		0.90		1.23		2.13
Horror - Terror in the water		Lake Placid		Fox		7/16/1999	$	31,770,414		25,100,000		56,870,414		2,102		35,000,000		55.86	%		44.14	%		0.91		0.72		1.62
Horror - Remake		House on Haunted Hill		WB		10/29/1999	$	40,846,082		n/a		-		2,710		37,000,000		-			-			1.10		-		-
SCI-FI Horror		Aliens Vs. Predator - Requiem		Fox		12/25/2007	$	41,315,275		70,133,980		111,449,255		2,617		40,000,000		37.07	%		62.93	%		1.03		1.75		2.79
Horror - Period		Bram Stoker's Dracula		Col.		11/13/1992	$	82,522,790		133,339,902		215,862,692		2,491		40,000,000		38.23	%		61.77	%		2.06		3.33		5.40
Horror - Remake		House of Wax		WB		5/6/2005	$	32,064,800		36,701,321		68,766,121		3,111		40,000,000		46.63	%		53.37	%		0.80		0.92		1.72
SCI-FI Horror		The Island of Dr. Moreau		NL		8/23/1996	$	27,663,982		21,963,797		49,627,779		2,039		40,000,000		55.74	%		44.26	%		0.69		0.55		1.24
Horror - Remake		The Wicker Man		WB		9/1/2006	$	23,649,127		15,052,837		38,701,964		2,784		40,000,000		61.11	%		38.89	%		0.59		0.38		0.97
Horror - Remake		Thirteen Ghosts		WB		10/26/2001	$	41,867,960		26,600,000		68,467,960		2,781		42,000,000		61.15	%		38.85	%		1.00		0.63		1.63
Horror - Period		Mary Shelley's Frankenstein		Sony		11/4/1994	$	22,006,296		90,000,000		112,006,296		2,177		45,000,000		19.65	%		80.35	%		0.49		2.00		2.49
SCI-FI Horror		Resident Evil: Extinction		SGem		9/21/2007	$	50,648,679		96,748,650		147,397,329		2,848		45,000,000		34.36	%		65.64	%		1.13		2.15		3.28
SCI-FI Horror		Resident Evil: Apocalypse		SGem		9/10/2004	$	51,201,453		78,193,382		129,394,835		3,284		45,000,000		39.57	%		60.43	%		1.14		1.74		2.88
Horror - Comedy		Scary Movie 2		Mira.		7/4/2001	$	71,308,997		69,911,681		141,220,678		3,220		45,000,000		50.49	%		49.51	%		1.58		1.55		3.14
Horror - Comedy		Scary Movie 4		W/Dim.		4/14/2006	$	90,710,620		87,552,000		178,262,620		3,674		45,000,000		50.89	%		49.11	%		2.02		1.95		3.96
Horror - Comedy		Scary Movie 3		Dim.		10/24/2003	$	110,003,217		110,670,000		220,673,217		3,505		48,000,000		49.85	%		50.15	%		2.29		2.31		4.60
Horror - Remake		The Ring		DW		10/18/2002	$	129,128,133		120,220,800		249,348,933		2,927		48,000,000		51.79	%		48.21	%		2.69		2.50		5.19
Horror - Remake		The Ring Two		DW		3/18/2005	$	76,231,249		85,220,289		161,451,538		3,341		50,000,000		47.22	%		52.78	%		1.52		1.70		3.23
SCI-FI Horror		Alien 3		Fox		5/22/1992	$	55,473,545		104,300,000		159,773,545		2,227		50,000,000		-			-			1.11		2.09		3.20
Horror - Period		The Village		BV		7/30/2004	$	114,197,520		142,500,000		256,697,520		3,733		60,000,000		44.49	%		55.51	%		1.90		2.38		4.28
Horror - Terror in the water		Deep Blue Sea		WB		7/30/1999	$	73,648,142		91,000,000		164,648,142		2,901		60,000,000		44.73	%		55.27	%		1.23		1.52		2.74
SCI-FI Horror		Alien Vs. Predator		Fox		8/13/2004	$	80,282,231		90,969,765		171,251,996		3,401		60,000,000		46.88	%		53.12	%		1.34		1.52		2.85
Horror - Period		Interview with the Vampire		WB		11/11/1994	$	105,264,608		118,400,000		223,664,608		2,604		60,000,000		47.06	%		52.94	%		1.75		1.97		3.73
SCI-FI Horror		Doom		Uni.		10/21/2005	$	28,212,337		27,774,984		55,987,321		3,044		60,000,000		50.39	%		49.61	%		0.47		0.46		0.93
Horror - Remake		Psycho (1998)		Uni.		12/4/1998	$	21,456,130		15,685,000		37,141,130		2,489		60,000,000		57.77	%		42.23	%		0.36		0.26		0.62
Horror - Anthology		Grindhouse		W/Dim.		4/6/2007	$	25,037,897		20,315		25,058,212		2,629		67,000,000		99.92	%		0.08	%		0.37		0.00		0.37
SCI-FI Horror		Signs		BV		8/2/2002	$	227,966,634		180,281,283		408,247,917		3,453		72,000,000		55.84	%		44.16	%		3.17		2.50		5.67
SCI-FI Horror		Alien Resurrection		Fox		11/26/1997	$	47,795,658		113,500,000		161,295,658		2,449		75,000,000		29.63	%		70.37	%		0.64		1.51		2.15
SCI-FI Horror		Virus		Uni.		1/15/1999	$	14,036,005		16,616,000		30,652,005		2,018		75,000,000		45.79	%		54.21	%		0.19		0.22		0.41
Horror - Remake		The Invasion		WB		8/17/2007	$	15,074,191		25,072,871		40,147,062		2,776		80,000,000		37.55	%		62.45	%		0.19		0.31		0.50
Horror - Remake		The Haunting		DW		7/23/1999	$	91,411,151		85,900,000		177,311,151		2,881		80,000,000		51.55	%		48.45	%		1.14		1.07		2.22
Horror - Period		Exorcist: The Beginning		WB		8/20/2004	$	41,821,986		36,178,600		78,000,586		2,813		80,000,000		53.62	%		46.38	%		0.52		0.45		0.98
Horror - Terror in the water		Sphere		WB		2/13/1998	$	37,020,277		-		-		2,814		80,000,000		-			-			0.46		-		-
Horror - Remake		The Stepford Wives		Par.		6/11/2004	$	59,484,742		42,516,884		102,001,626		3,057		90,000,000		58.32	%		41.68	%		0.66		0.47		1.13
Horror - Period		Sleepy Hollow		Par.		11/19/1999	$	101,071,502		105,000,000		206,071,502		3,069		100,000,000		49.05	%		50.95	%		1.01		1.05		2.06
SCI-FI Horror		War of the Worlds		Par.		6/29/2005	$	234,280,354		357,465,174		591,745,528		3,910		132,000,000		-			-			1.77		2.71		4.48
SCI-FI Horror		I Am Legend		WB		12/14/2007	$	248,815,030		262,500,000		511,315,030		3,648		150,000,000		48.66	%		51.34	%		1.66		1.75		3.41
Horror - Period		Van Helsing		Uni.		5/7/2004	$	120,177,084		180,080,391		300,257,475		3,580		160,000,000		40.02	%		59.98	%		0.75		1.13		1.88
Horror - Comedy		Feast		W/Dim.		9/22/2006	$	56,131		285,677		341,808		146		-		16.42	%		83.58	%		-		-		-
Horror - Torture		Captivity		ADF		7/13/2007	$	2,626,800		6,772,940		9,399,740		1,061		-		27.95	%		72.05	%		-		-		-
Horror - Terror in the water		Jaws IV: The Revenge		Uni.		7/17/1987	$	20,763,013		31,118,000		51,881,013		1,611		-		40.02	%		59.98	%		-		-		-
Horror - Terror in the water		Into the Blue		Sony		9/30/2005	$	18,801,234		25,633,205		44,434,439		2,789		-		42.31	%		57.69	%		-		-		-
Horror - Terror in the water		Jaws 2		Uni.		6/16/1978	$	81,766,007		106,118,000		187,884,007		640		-		43.52	%		56.48	%		-		-		-
Horror - Comedy		Shaun of the Dead		Rog.		9/24/2004	$	13,542,874		16,496,518		30,039,392		675		-		45.08	%		54.92	%		-		-		-
Horror - Terror in the water		Anaconda		Sony		4/11/1997	$	65,885,767		71,000,000		136,885,767		2,456		-		48.13	%		51.87	%		-		-		-
SCI-FI Horror		The Fly II		Fox		2/10/1989	$	20,021,322		18,881,857		38,903,179		1,528		-		51.46	%		48.54	%		-		-		-
Horror - Remake		Dark Water		BV		7/8/2005	$	25,473,352		24,010,000		49,483,352		2,657		-		51.48	%		48.52	%		-		-		-
Horror - Terror in the water		Jaws 3-D		Uni.		7/22/1983	$	45,517,055		42,470,000		87,987,055		1,311		-		51.73	%		48.27	%		-		-		-
Horror - Comedy		Ghostbusters II		Col.		6/16/1989	$	112,494,738		102,900,000		215,394,738		2,410		-		52.23	%		47.77	%		-		-		-
Horror - Torture		Saw IV		LGF		10/26/2007	$	63,300,095		56,235,824		119,535,919		3,183		-		52.95	%		47.05	%		-		-		-
Horror - Comedy		The Frighteners		Uni.		7/19/1996	$	16,759,216		12,600,000		29,359,216		1,675		-		57.08	%		42.92	%		-		-		-
Horror - Torture		High Tension		Lions		6/10/2005	$	3,681,066		2,610,892		6,291,958		1,323		-		58.50	%		41.50	%		-		-		-
Horror - Torture		Wolf Creek		W/Dim.		12/25/2005	$	16,188,180		11,463,426		27,651,606		1,761		-		58.54	%		41.46	%		-		-		-
SCI-FI Horror		Aliens		Fox		7/18/1986	$	85,160,248		45,900,000		131,060,248		1,454		-		64.98	%		35.02	%		-		-		-
Horror - Comedy		Club Dread		FoxS		2/27/2004	$	5,001,708		2,564,099		7,565,807		1,807		-		66.11	%		33.89	%		-		-		-
Horror - Remake		The Fly		Fox		8/15/1986	$	40,456,565		20,172,594		60,629,159		1,201		-		66.73	%		33.27	%		-		-		-
Horror - Period		The Missing		SonR		11/26/2003	$	27,011,180		11,353,097		38,364,277		2,756		-		70.41	%		29.59	%		-		-		-
Horror - Torture		The Hitcher (2007)		Rog.		1/19/2007	$	16,472,961		6,722,295		23,195,256		2,836		-		71.02	%		28.98	%		-		-		-
Horror - Comedy		Fido		RAtt.		6/15/2007	$	304,533		121,691		426,224		67		-		71.45	%		28.55	%		-		-		-
Horror - Remake		Halloween (2007)		MGM/W		8/31/2007	$	58,272,029		19,892,630		78,164,659		3,475		-		74.55	%		25.45	%		-		-		-

SANLI PASTORE & HILL, INC.

134

Appendix B

Platinum Studios, Inc.

Horror Movies

Date of Value: March 31,2008

							Data from Box Office Mojo										Calculated by SP&H
Type	Title		Studio		Date Released		Demestic Revenues		International Revenues		Worldwide Revenues		Theaters		Budget		Demestic as % of Worldwide Revenues			International as % of Worldwide Revenues			Demestic Revenues / Budget		International Revenues / Budget		Worldwide Revenues / Budget

Horror - Remake		Black Christmas (2006)		MGM/W		12/25/2006	$	16,273,581		4,083,539		20,357,120		1,544		-		79.94	%		20.06	%		-		-		-
Horror - Remake		One Missed Call		WB		1/4/2008	$	25,082,427		290,329		25,372,756		2,240		-		98.86	%		1.14	%		-		-		-
Horror - Terror in the water		Orca		Par.		7/13/1977	$	14,717,854		-		-		-		-		-			-			-		-		-
Horror - Comedy		Return of the Living Dead 2		Lori		1/15/1988	$	9,205,924		-		-		1,467		-		-			-			-		-		-
Horror - Comedy		Critters 2: The Main Course		NL		4/29/1988	$	3,813,293		-		-		1,114		-		-			-			-		-		-
Horror - Terror in the water		Deepstar Six		TriS		1/13/1989	$	8,143,225		-		-		1,118		-		-			-			-		-		-
Horror - Comedy		Fright Night II		NCeV		5/19/1989	$	2,983,784		-		-		161		-		-			-			-		-		-
Horror - Comedy		Behind the Mask: The Rise of Leslie Vernon		Anch.		3/16/2007	$	69,136		-		-		72		-		-			-			-		-		-
Horror - Terror in the water		The Deep		Col.		6/17/1977	$	47,346,365		-		-		731		-		-			-			-		-		-
Horror - Remake		Invasion of the Body Snatchers		UA		12/22/1978	$	24,946,533		-		-		445		-		-			-			-		-		-
SCI-FI Horror		Altered States		WB		12/25/1980	$	19,853,892		-		-		-		-		-			-			-		-		-
SCI-FI Horror		Scanners (1981)		Emb		1/14/1981	$	14,225,876		-		-		-		-		-			-			-		-		-
Horror - Comedy		An American Werewolf in London		Uni.		8/21/1981	$	30,565,292		-		-		-		-		-			-			-		-		-
Horror - Remake		Cat People		Uni.		4/2/1982	$	7,000,000		-		-		600		-		-			-			-		-		-
Horror - Remake		The Thing		Uni.		6/25/1982	$	13,782,838		-		-		910		-		-			-			-		-		-
SCI-FI Horror		The Thing		Uni.		6/25/1982	$	13,782,838		-		-		910		-		-			-			-		-		-
Horror - Comedy		National Lampoon's Class Reunion		Fox		10/29/1982	$	10,054,150		-		-		1,125		-		-			-			-		-		-
Horror - Anthology		Creepshow		WB		11/12/1982	$	21,028,755		-		-		1,132		-		-			-			-		-		-
SCI-FI Horror		Videodrome		Uni.		2/4/1983	$	2,120,439		-		-		600		-		-			-			-		-		-
Horror - Anthology		Twilight Zone: The Movie		WB		6/24/1983	$	29,450,919		-		-		1,288		-		-			-			-		-		-
Horror - Anthology		Nightmares		Uni.		9/2/1983	$	6,670,680		-		-		1,025		-		-			-			-		-		-
Horror - Comedy		Gremlins		WB		6/8/1984	$	153,083,102		-		-		1,537		-		-			-			-		-		-
Horror - Anthology		Cat's Eye		MGM		4/12/1985	$	13,086,298		-		-		1,492		-		-			-			-		-		-
SCI-FI Horror		Lifeforce		TriS		6/21/1985	$	11,603,545		-		-		1,526		-		-			-			-		-		-
Horror - Comedy		Fright Night		Col.		8/2/1985	$	24,922,237		-		-		1,545		-		-			-			-		-		-
Horror - Comedy		Return of the Living Dead		Orion		8/16/1985	$	14,237,880		-		-		1,506		-		-			-			-		-		-
Horror - Comedy		Once Bitten		Gold.		11/15/1985	$	10,000,000		-		-		1,095		-		-			-			-		-		-
Horror - Comedy		Critters		NL		4/11/1986	$	13,167,232		-		-		633		-		-			-			-		-		-
Horror - Remake		Invaders From Mars		Can.		6/6/1986	$	4,884,663		-		-		1,212		-		-			-			-		-		-
Horror - Comedy		Vamp		NW		7/18/1986	$	4,941,117		-		-		1,104		-		-			-			-		-		-
SCI-FI Horror		Maximum Overdrive		DEG		7/25/1986	$	7,433,663		-		-		1,198		-		-			-			-		-		-
Horror - Anthology		Deadtime Stories		PEC		11/28/1986	$	2,750,741		-		-		255		-		-			-			-		-		-
Horror - Comedy		Little Shop of Horrors		WB		12/19/1986	$	38,748,395		-		-		1,183		-		-			-			-		-		-
SCI-FI Horror		The Kindred		FMEnt		1/9/1987	$	2,407,024		-		-		566		-		-			-			-		-		-
Horror - Comedy		Evil Dead 2		DEG		3/13/1987	$	5,923,044		-		-		310		-		-			-			-		-		-
Horror - Period		Gothic		Vest		4/10/1987	$	916,172		-		-		20		-		-			-			-		-		-
Horror - Anthology		Creepshow 2		NW		5/1/1987	$	14,000,000		-		-		1,012		-		-			-			-		-		-
Horror - Anthology		The Offspring		MovE		9/4/1987	$	1,355,728		-		-		137		-		-			-			-		-		-
SCI-FI Horror		Monkey Shines		Orion		7/29/1988	$	5,344,577		-		-		1,181		-		-			-			-		-		-
SCI-FI Horror		The Blob		TriS		8/5/1988	$	8,247,943		-		-		1,081		-		-			-			-		-		-
SCI-FI Horror		Watchers		Uni.		12/2/1988	$	940,173		-		-		161		-		-			-			-		-		-
SCI-FI Horror		Deepstar Six		TriS		1/13/1989	$	8,143,225		-		-		1,118		-		-			-			-		-		-
SCI-FI Horror		Leviathan		MGM		3/17/1989	$	15,704,614		-		-		1,393		-		-			-			-		-		-
Horror - Anthology		After Midnight		MGM		11/3/1989	$	76,325		-		-		224		-		-			-			-		-		-
Horror - Comedy		Tremors		Uni.		1/19/1990	$	16,667,084		-		-		1,477		-		-			-			-		-		-
Horror - Anthology		Tales From the Darkside: The Movie		Par.		5/4/1990	$	16,324,573		-		-		1,535		-		-			-			-		-		-
Horror - Comedy		Gremlins 2: The New Batch		WB		6/15/1990	$	41,482,207		-		-		2,155		-		-			-			-		-		-
Horror - Comedy		Arachnophobia		BV		7/20/1990	$	53,208,180		-		-		2,005		-		-			-			-		-		-
Horror - Comedy		Repossessed		NL		9/14/1990	$	1,382,462		-		-		115		-		-			-			-		-		-
SCI-FI Horror		Hardware		Mira.		9/14/1990	$	5,728,953		-		-		695		-		-			-			-		-		-
Horror - Remake		Night of the Living Dead		Col.		10/19/1990	$	5,835,247		-		-		1,544		-		-			-			-		-		-
Horror - Anthology		Two Evil Eyes		Tau		10/25/1991	$	349,618		-		-		150		-		-			-			-		-		-
Horror - Comedy		Buffy the Vampire Slayer		Fox		7/31/1992	$	16,624,456		-		-		1,981		-		-			-			-		-		-
Horror - Comedy		Innocent Blood		WB		9/25/1992	$	4,943,279		-		-		1,326		-		-			-			-		-		-
Horror - Comedy		Dead Alive		Trim.		2/12/1993	$	242,623		-		-		11		-		-			-			-		-		-
Horror - Comedy		Army of Darkness		Uni.		2/19/1993	$	11,502,976		-		-		1,391		-		-			-			-		-		-
SCI-FI Horror		Body Snatchers		WB		1/14/1994	$	428,868		-		-		34		-		-			-			-		-		-
Horror - Period		Cronos		Oct.		4/1/1994	$	621,392		-		-		28		-		-			-			-		-		-
Horror - Remake		Village of the Damned		Uni.		4/28/1995	$	9,418,365		-		-		1,919		-		-			-			-		-		-
Horror - Anthology		Tales from the Hood		Sav.		5/26/1995	$	11,837,928		-		-		862		-		-			-			-		-		-
Horror - Comedy		Vampire in Brooklyn		Par.		10/27/1995	$	19,751,736		-		-		2,307		-		-			-			-		-		-
Horror - Comedy		Dracula: Dead and Loving It		Sony		12/22/1995	$	10,772,144		-		-		1,425		-		-			-			-		-		-
SCI-FI Horror		Screamers		Sony		1/26/1996	$	5,711,695		-		-		1,560		-		-			-			-		-		-
Horror - Comedy		Cemetary Man		Oct.		4/26/1996	$	253,986		-		-		25		-		-			-			-		-		-
Horror - Comedy		Bordello of Blood		Uni.		8/16/1996	$	5,781,045		-		-		1,695		-		-			-			-		-		-
Horror - Period		The Ghost and the Darkness		Par.		10/11/1996	$	38,619,405		-		-		2,202		-		-			-			-		-		-
SCI-FI Horror		Event Horizon		Par.		8/15/1997	$	26,673,242		-		-		2,328		-		-			-			-		-		-
Horror - Terror in the water		Deep Rising		BV		1/30/1998	$	11,203,026		-		-		1,788		-		-			-			-		-		-
Horror - Torture		Strangeland		Art.		10/2/1998	$	713,239		-		-		315		-		-			-			-		-		-
Horror - Period		The Devil's Backbone		SPC		11/21/2001	$	755,249		-		-		35		-		-			-			-		-		-
Horror - Period		Dominion: Prequel to the Exorcist		WB		5/20/2005	$	251,495		-		-		110		-		-			-			-		-		-
Horror - Anthology		After Dark's Horror Fest: 8 Films to Die For		Free		11/17/2006	$	2,575,000		-		-		488		-		-			-			-		-		-
Horror - Anthology		After Dark's Horror fest 2		ADF		11/9/2007	$	874,635		0		874,635		323		-		100.00	%		0.00	%		-		-		-
Horror - Comedy		Teeth		RAtt.		1/18/2008	$	36,530		-		-		4		-		-			-			-		-		-
SCI-FI Horror		The Fly		Fox		8/15/1986	$	40,456,565		20,172,594		60,629,159		1,201		-		-			-			-		-		-
Horror - Period		Mary Reilly		Sony		2/23/1996	$	5,707,094		6,672,308		12,379,402		1,470		-		-			-			-		-		-
Horror - Torture		Cube		Trim.		9/11/1998	$	501,818		-		-		24		-		-			-			-		-		-
Horror - Period		Below		Dim.		10/11/2002	$	605,562		-		-		353		-		-			-			-		-		-
Horror - Torture		Chaos		Din.		8/10/2005	$	10,289		-		-		2		-		-			-			-		-		-
Horror - Remake		Night of the Living Dead 3D		MME		11/10/2006	$	271,000		1,178,945		1,449,945		145		-		-			-			-		-		-
Horror - Comedy		Hatchet		Anch.		9/7/2007		-		-		-		78		-		-			-			-		-		-
Horror - Torture		The Strangers		Rog.		-		-		-		-		-		-		-			-			-		-		-
Horror - Comedy		Dead 5: Rave to the Grave		Free		-		-		-		-		-		-		-			-			-		-		-

Summary Statistics
	Demestic Revenues			International Revenues			Worldwide Revenues			Theaters			Budget			Demestic as % of Worldwide Revenues		International as % of Worldwide Revenues		Demestic Revenues / Budget			International Revenues / Budget			Worldwide Revenues / Budget

Count		185			102			102			182			82			95		95		73			66			65
Min		10,289			0			341,808			2			500,000			0.02		0.00		0.01			0.00			0.37
LQ		5,923,044			12,936,750			31,811,338			910			14,250,000			0.46		0.36		0.75			0.66			1.72
Median		19,363,565			27,783,077			68,617,041			1,699			30,000,000			0.55		0.45		1.23			1.52			2.79
Mean		35,780,236			51,031,877			105,148,813			1,740			37,201,220			0.55		0.45		4.03			3.60			8.06
UQ		41,867,960			77,875,475			147,654,306			2,696			49,500,000			0.64		0.54		2.18			2.17			4.48
Max		260,000,000			357,465,174			591,745,528			3,910			160,000,000			1.00		0.98		61.22			48.11			109.34
Std Dev		47,174,557			58,585,396			108,810,944			1,084			32,480,682			0.16		0.16		9.91			8.36			18.81
*Mean + 2Std Dev**		130,129,349			168,202,670			322,770,701			3,907			102,162,583			0.88		0.77		23.85			20.31			45.69
*Mean - 2Std Dev**		(58,568,877	)		(66,138,915	)		(112,473,075	)		(428	)		(27,760,144	)		0.23		0.12		(15.79	)		(13.12	)		(29.57	)
CV		1.32			1.15			1.03			0.62			0.87			0.30		0.36		2.46			2.32			2.33

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135

Appendix C

Platinum Studios, Inc.

Film Library Deals

Date of Value: March 31,2008

							Data from Vogel & Press Releases				Calc. by SP&H
Year	Assets Transferred		Sold by		Bought by		Number of Features		Approximate Price		Price per Feature

1957		700 WB features, shorts, cartoons		Associated Artist		United Artist		700		30,000,000		42,857
1958		750 pre-1948 features		Paramount		MCA		750		50,000,000		66,667
1979		500 features		American International Pictures		Filmways		500		25,000,000		50,000
1982		500 features		Filmways		Orion Pictures		500		26,000,000		52,000
1993		200 features		New Line		Turner Broadcasting		200		500,000,000		n/a
1997		2,000 features		Orion/Samuel Goldwyn		Metro-Goldwyn-Mayer		2,000		573,000,000		286,500
1/9/2008		Acquisition results in getting all-rights library of 1900 movie titles		RCV Entertainment		Entertainment One Ltd.		1,900		41,500,000		21,842
12/3/2006		Acquisition results in ownership of library of 7000 filmtitles		Artisan Entertainment		Lions Gate Entertainment		7,000		220,000,000		31,429
10/5/2006		Library of over 600 TV movies, mini series		Crown Media		RHI Entertainment		600		160,000,000		266,667
3/17/2006		Acquisition of Paramount Pictures' Dreamworks film library		Viacom		Soros Strategic Partners LP & Dune Entertainment II LLC		-		900,000,000		-
6/22/2001		Acquisition results in ownership of branded characters including Casper, Richie Rich		Harvey Entertainment Co.		Classic Media LLC		-		17,000,000		-

Summary Statistics
	Number of Features			Approximate Price			Price per Feature

Count		9			11			8
Min		200			17,000,000			21,842
LQ		500			28,000,000			40,000
Median		700			50,000,000			51,000
Mean		1,572			231,136,364			102,245
UQ		1,900			360,000,000			116,667
Max		7,000			900,000,000			286,500
Std Dev		2,131			296,879,950			108,569
*Mean + 2Std Dev**		5,833			824,896,263			319,383
*Mean - 2Std Dev**		(2,689	)		(362,623,536	)		(114,893	)
CV		1.36			1.28			1.06

Source: Vogel, Harold L.: "Entertainment Industry Economics" Seventh Edition; and Press Releases.

SANLI PASTORE & HILL, INC.

136

Appendix D

Platinum Studios, Inc.

Direct-to-DVD Movies

Date of Value: March 31,2008

					Data from Video Business						Calc. by SP&H
Release Date	Direct-to-DVD Title		Label / Distributor		Revenues		Average Budget		Rank		Revenue to Avgerage Budget

Sept 27/05		Family Guy Stwewie Griffin: The Untold Story		Fox		78,200,000		4,000,000		1		19.6
Feb 1/05		Mulan II		BV		61,600,000		4,000,000		2		15.4
Jun 14/05		Tarzan II		BV		47,100,000		4,000,000		3		11.8
Aug 30/05		Lilo & Stitch 2: StitchHas a Glitch		BV		43,700,000		4,000,000		4		10.9
Dec 13/05		Kronk's New Groove		BV		24,200,000		4,000,000		5		6.1
Sept 27/05		Carlito's Way: Rise to Power		Universal		22,100,000		4,000,000		6		5.5
Sept 20/05		Barbie Fairytopia		Lions Gate		20,600,000		4,000,000		7		5.2
May 3/05		The Sandlot 2		Fox		19,600,000		4,000,000		8		4.9
Jan 18/05		Aladdin 2&3 Collection		BV		19,000,000		4,000,000		9		4.8
Dec 26/05		American Pie: Band Camp		Universal		18,600,000		4,000,000		10		4.7
Dec 7/05		Blue Collar Comedy Tour Rides		Par		17,600,000		4,000,000		11		4.4
Sept 20/05		Barbie and the Magic of Pegasus		Lions Gate		16,000,000		4,000,000		12		4.0
Feb 8/05		Aloha Scooby-Doo		WB		14,000,000		4,000,000		13		3.5
Feb 15/05		Into the Sun		Sony		12,700,000		4,000,000		14		3.2
Jan 11/05		LBT: Tinysauruses		Universal		11,500,000		4,000,000		15		2.9
Sept 13/05		Pooh's Heffalump Halloween Movie		BV		11,100,000		4,000,000		16		2.8
Dec 28/05		Wake of Death		Sony		10,500,000		4,000,000		17		2.6
Aug 31/05		The Lion King 2		BV		9,900,000		4,000,000		18		2.5
Feb 15/05		Control		Sony		8,700,000		4,000,000		19		2.2
Sept 28/05		Barbie as the Princess and Pauper		Lions Gate		8,400,000		4,000,000		20		2.1
Sept 13/05		Rock Angelz		Fox		7,900,000		4,000,000		21		2.0
May 31/05		Submerged		Sony		7,800,000		4,000,000		22		2.0
Oct 11/05		11:14		NL / WB		6,700,000		4,000,000		23		1.7
Feb 15/05		PokemonL Destiny Deoxys		BV		6,100,000		4,000,000		24		1.5
Oct 11/05		Bionicle 3		BV		5,900,000		4,000,000		25		1.5

Summary Statistics
	Revenues			Average Budget		Revenue to Avgerage Budget

Count		25			25		25
Min		5,900,000			4,000,000		1.5
LQ		8,700,000			4,000,000		2.2
Median		14,000,000			4,000,000		3.5
Mean		20,380,000			4,000,000		5.1
UQ		20,600,000			4,000,000		5.2
Max		78,200,000			4,000,000		19.6
Std Dev		18,276,807			0		4.6
*Mean + 2Std Dev**		56,933,614			4,000,000		14.2
*Mean - 2Std Dev**		(16,173,614	)		4,000,000		(4.0	)
CV		0.90			0.00		0.90

Source: Video Business; Year End 2005 Top DVD Premiere Titles

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137

Appendix E

Platinum Studios, Inc.

User generated Content Sites Deals

Date of Value: March 31,2008

					Data from Press Releases														Calc. by SP&H
Date	User Generated Content Sites		Bought by		Deal Price		Inbound Links		Compete Monthly Visitors		Quantcast Monthly Visitors		Average Uniques		Alexa Ranking		Page Rank		Deal Price/CMV		Deal Price/QMV		Deal Price/Avg Uniques

Jan-07		MyBlogLog.com		Yahoo!	$	10,000,000		1,746,490		1,972,847		84,992		1,028,920		432		7		5.07		117.66		9.72
Aug-07		TreeHugger		Discovery Communications	$	10,000,000		-		597,574		1,574,718		1,086,146		-		-		16.73		6.35		9.21
Mar-07		Insider Pages		CitySearch	$	13,000,000		-		1,738,119		3,300,252		2,519,186		-		-		7.48		3.94		5.16
Jun-05		Flickr.com		Yahoo!	$	25,000,000		51,779,871		23,643,614		9,700,000		16,671,807		36		8		1.06		2.58		1.50
Jul-07		Recipezaar.com		Scripps Networks	$	25,000,000		-		4,017,077		3,587,948		3,802,513		-		-		6.22		6.97		6.57
Aug-07		Kaboodle		Hearst Interactive Media	$	30,000,000		-		2,428,997		4,039,611		3,234,304		-		-		12.35		7.43		9.28
May-07		StumbleUpon.com		Ebay	$	75,000,000		1,983,910		1,313,586		659,239		986,413		300		8		57.10		113.77		-
Jun-07		Feedburner.com		Google	$	100,000,000		100,244,672		5,478,321		592,976		3,035,649		323		8		18.25		168.64		32.94
Dec-05		del.icio.us		Yahoo!	$	250,000,000		171,905,738		1,699,128		1,300,000		1,499,564		248		8		147.13		192.31		-
May-07		PhotoBucket.com		MySpace	$	250,000,000		144,789,477		25,548,801		14,000,000		19,774,401		40		8		9.79		17.86		12.64
May-07		last.fm		CBS Interactive	$	280,000,000		14,448,992		1,150,875		713,976		932,426		304		7		243.29		392.17		-
Jul-05		MySpace.com		News Corporation	$	580,000,000		92,285,806		62,285,849		53,000,000		57,642,925		6		8		9.31		10.94		10.06
Oct-06		YouTube.com		Google	$	1,650,000,000		75,539,411		41,422,790		43,000,000		42,211,395		9		8		39.83		38.37		39.09

Summary Statistics
	Deal Price			Inbound Links			Compete Monthly Visitors			Quantcast Monthly Visitors			Average Uniques			Deal Price/CMV			Deal Price/QMV			Deal Price/Avg Uniques

Count		13			9			13			13			13			13			13			10
Min		10,000,000			1,746,490			597,574			84,992			932,426			1.06			2.58			1.50
LQ		25,000,000			14,448,992			1,699,128			713,976			1,086,146			7.48			6.97			7.23
Median		75,000,000			75,539,411			2,428,997			3,300,252			3,035,649			12.35			17.86			9.50
Mean		253,692,308			72,747,152			13,330,583			10,427,209			11,878,896			44.12			83.00			13.62
UQ		250,000,000			100,244,672			23,643,614			9,700,000			16,671,807			39.83			117.66			12.00
Max		1,650,000,000			171,905,738			62,285,849			53,000,000			57,642,925			243.29			392.17			39.09
Std Dev		451,272,901			61,293,376			19,498,365			17,272,810			18,225,187			71.56			114.94			12.28
*Mean + 2Std Dev**		1,156,238,109			195,333,905			52,327,313			44,972,829			48,329,270			187.24			312.87			38.18
*Mean - 2Std Dev**		(648,853,493	)		(49,839,601	)		(25,666,147	)		(24,118,411	)		(24,571,478	)		(98.99	)		(146.88	)		(10.94	)
CV		1.78			0.84			1.46			1.66			1.53			1.62			1.38			0.90

SANLI PASTORE & HILL, INC.

138

Appendix F

Platinum Studios, Inc.

General Content/E-commerce Sites Deals Under $30 million

Date of Value: March 31,2008

					Data from Press Releases								Calc. by SP&H
Date	General Content Sites		Bought by		Deal Price		Compete Monthly Visitors		Quantcast Monthly Visitors		Avgerage Monthly Uniques		Deal Price/CMV		Deal Price/QMV		Deal Price/Average Monthly Uniques

10/2/2006		Renovation Experts.com (Renex, Inc.)		Website Pros, Inc.	$	8,000,000		92,671		119,161		105,916		86.33		67.14		-
10/2/2006		1ShoppingCart.com		Website Pros, Inc.	$	12,452,888		517,007		755,066		636,037		24.09		16.49		19.58
7/18/2007		Mediabistro		Jupiter Media	$	23,000,000		962,698		733,445		848,072		23.89		31.36		27.12
9/14/2007		BuzzTracker		Yahoo	$	5,000,000		739,796		2,404,722		1,572,259		6.76		2.08		3.18
5/22/2007		Wallstrip		CBS	$	5,000,000		32,769		45,404		39,087		152.58		110.12		-
10/23/2007		SmartShopper		Zango	$	9,000,000		56,630		1,671		29,151		158.93		5,386.00		-
10/12/2007		Dotspotter		CBS	$	10,000,000		39,696		53,244		46,470		251.91		187.81		-

Summary Statistics
	Deal Price			Compete Monthly Visitors			Quantcast Monthly Visitors			Avgerage Monthly Uniques			Deal Price/CMV			Deal Price/QMV			Deal Price/Average Monthly Uniques

Count		7			7			7			7			7			7			3
Min		5,000,000			32,769			1,671			29,151			6.76			2.08			3.18
LQ		6,500,000			48,163			49,324			42,778			23.99			23.93			11.38
Median		9,000,000			92,671			119,161			105,916			86.33			67.14			19.58
Mean		10,350,413			348,752			587,530			468,141			100.64			828.71			16.63
UQ		11,226,444			628,402			744,256			742,054			155.75			148.97			23.35
Max		23,000,000			962,698			2,404,722			1,572,259			251.91			5,386.00			27.12
Std Dev		6,180,037			388,250			865,401			588,420			91.06			2,010.59			12.24
*Mean + 2Std Dev**		22,710,486			1,125,252			2,318,332			1,644,981			282.76			4,849.89			41.11
*Mean - 2Std Dev**		(2,009,661	)		(427,748	)		(1,143,271	)		(708,698	)		(81.47	)		(3,192.46	)		(7.85	)
CV		0.60			1.11			1.47			1.26			0.90			2.43			0.74

SANLI PASTORE & HILL, INC.

139

Appendix G-1

Platinum Studios, Inc.

Video Game Unit Sales

Date of Value: March 31, 2008

							Data from VGChartz.com
							Annual Unit Sales Volume (North America)
Title	Publisher		Release (M)		Release (Y)		2004		2005		2006		2007		2008 ¹		Total
Spider-Man 2		Activision		June		2004		263,598		299,598		90,263		0		0		653,459
Dragon Ball Z: Budokai 3		Atari		November		2004		739,647		250,637		96,762		6,483		460		1,093,989
The Incredibles		THQ		October		2004		711,816		589,529		192,602		37,820		1,763		1,533,530
Yu-Gi-Oh: Nightmare Troubadour		Konami		August		2005		-		111,345		38,890		3,195		303		153,733
Fantastic Four		Activision		July		2005		-		281,043		98,748		0		0		379,791
Megaman Battle Team 5: Double Team		Capcom		June		2005		-		29,819		24,131		1,677		132		55,759
Pokemon Dash		Nintendo		March		2005		-		175,193		25,383		5,547		1,208		207,331
Dragon Ball Z: Sagas		Atari		March		2005		-		305,479		57,336		1,332		0		364,147
Madagascar		Activision		May		2005		-		816,267		570,972		91,910		8,280		1,487,429
Dragon Ball Z: Supersonic Warriors 2		Atari		November		2005		-		54,860		63,067		5,650		485		124,062
Kim Possible: Kimmunicator		Buena Vista		November		2005		-		34,647		47,630		2,874		265		85,416
Sponge Bob Square Pants: Yellow Avenger		THQ		November		2005		-		79,165		169,897		24,676		4,459		278,197
Teenage Mutant Ninja Turtles 3: Mutant Nightmare		Konami		November		2005		-		12,323		36,646		6,073		484		55,526
The Incredibles 2		THQ		November		2005		-		43,425		46,633		5,686		488		96,232
Ed, Edd n Eddy: The Mis-Edventures		Midway		October		2005		-		135,357		183,708		29,979		2,146		351,190
Pokemon XD: Gale of Darkness		Nintendo		October		2005		-		381,058		174,981		82,615		0		638,654
Shrek Superslam		Activision		October		2005		-		46,663		106,938		17,948		1,386		172,935
Sponge Bob Square Pants: Lights Camera Pants		THQ		October		2005		-		208,512		111,108		32,912		3,841		356,373
Chicken Little		Buena Vista		October		2005		-		201,342		97,178		7,066		393		305,979
Dragon Ball Z: Budokai Tenkaichi		Atari		October		2005		-		535,385		332,122		60,007		4,014		931,528
Ghost in the Shell: Stand Alone Complex		Namco Bandai		October		2005		-		24,909		32,850		4,283		415		62,457
Nicktoons: Unite!		THQ		October		2005		-		206,788		213,532		17,337		1,864		439,521
Marvel Nemesis: Rise of the Imperfects		Electronic Arts		September		2005		-		322,989		503,837		137,166		4,985		968,977
Ultimate Spider-Man		Activision		September		2005		-		411,458		273,840		0		0		685,298
X-Men Legends II - Rise of Apocalypse		Activision		September		2005		-		380,766		333,684		24,322		0		738,772
Scooby Doo: Unmasked		THQ		September		2005		-		20,157		28,827		16,052		1,647		66,683
Megaman: Maverick Hunter X		Capcom		January		2006		-		-		118,586		4,228		466		123,280
Monster House		THQ		July		2006		-		-		77,278		10,309		883		88,470
Cars		THQ		June		2006		-		-		2,697,719		755,959		74,382		3,528,060
Ice Age 2: The Meltdown		Vivendi		March		2006		-		-		124,101		48,082		4,291		176,474
Kingdom Hearts II		Square		March		2006		-		-		1,914,037		132,677		10,059		2,056,773
Naruto: Clash of Ninja Revolution		D3Publisher		March		2006		-		-		425,407		277,614		141,511		844,532
Dragon Ball Z: Shin Budokai		Atari		March		2006		-		-		192,359		25,838		5,022		223,219
Pokemon Trozei		Nintendo		March		2006		-		-		176,527		33,816		5,124		215,467
X-Men: The Official Game		Activision		May		2006		-		-		73,766		0		0		73,766
Over the Hedge		Activision		May		2006		-		-		524,501		141,953		8,353		674,807
Dragon Ball Z: Budokai Tenkaichi 2		Atari		November		2006		-		-		533,916		274,084		20,153		828,153
Happy Feet		Midway		November		2006		-		-		237,331		117,333		16,941		371,605
Spider-Man Battle for New York		Activision		November		2006		-		-		33,253		38,024		0		71,277
Superman Returns		Electronic Arts		November		2006		-		-		150,968		38,486		0		189,454
Marvel Ultimate Alliance		Activision		October		2006		-		-		1,209,246		2,337,079		231,033		3,777,358
Naruto: Ninja Council 2		Tomy		October		2006		-		-		6,061		6,504		618		13,183
Pokemon Ranger		Nintendo		October		2006		-		-		522,294		445,178		64,845		1,032,317
Avatar : The Last Airbender		THQ		October		2006		-		-		251,546		161,759		17,226		430,531
Family Guy		2K Games		October		2006		-		-		74,188		58,369		7,230		139,787
Nicktoons: Battle for Volcano Island		THQ		October		2006		-		-		111,481		91,861		14,354		217,696
Bratz: Forever Diamonds		THQ		September		2006		-		-		202,681		87,279		7,665		297,625
Little Mermaid: Ariel's Undersea Adventure		Buena Vista		September		2006		-		-		77,393		25,918		1,767		105,078
Megaman ZX		Capcom		September		2006		-		-		85,306		29,154		2,465		116,925
Open Season		Ubisoft		September		2006		-		-		179,849		115,808		12,735		308,392
Pokemon Mystery Dungeon: Blue Team Rescue Team		Nintendo		September		2006		-		-		808,695		267,112		30,010		1,105,817
Pokemon Mystery Dungeon: Red Team Rescue Team		Nintendo		September		2006		-		-		675,387		152,966		0		828,353
Ghost Rider		2K Games		February		2007		-		-		-		174,015		22,201		196,216
Marvel Trading Card Game		Konami		February		2007		-		-		-		48,749		7,054		55,803
Fantastic Four: Rise of the Silver Surfer		2K Games		June		2007		-		-		-		290,532		52,094		342,626
TMNT		Ubisoft		March		2007		-		-		-		552,520		66,055		618,575
Naruto: Ninja Council 3		Tomy		May		2007		-		-		-		273,187		39,277		312,464
Spider-Man 3		Activision		May		2007		-		-		-		1,696,372		114,076		1,810,448
Surf's Up		Ubisoft		May		2007		-		-		-		436,301		99,306		535,607
Ben 10: Protectors of Earth		D3Publisher		October		2007		-		-		-		321,172		202,018		523,190
Naruto: Path of the Ninja		Tomy		October		2007		-		-		-		169,069		70,086		239,155
Spider-Man: Friend or Foe		Activision		October		2007		-		-		-		462,196		172,787		634,983
Naruto: Ninja Destiny		D3Publisher		March		2008		-		-		-		-		132,992		132,992
Iron Man		Sega		May		2008		-		-		-		-		188,421		188,421

Summary Statistics
	Total Annual Unit Sales Volume (North America)

Count		64
Min		13,183
LQ		138,088
Median		310,428
Mean		558,060
UQ		677,430
Max		3,777,358
Std Dev		713,618
*Mean + 2Std Dev**		1,985,296
*Mean - 2Std Dev**		(869,176	)
CV		1.28

Note:

¹Annual Unit Sales Volume (North America) for 2008 includes data for the period of January through April.

Source: VGChartz, American Chart (Yearly). http://vgchartz.com/ayearly.php

SANLI PASTORE & HILL, INC.

140

Appendix G-2

Platinum Studios, Inc.

Video Game Unit Sales: Comic and Manga Titles Released from 2004 - 2006

Date of Value: March 31, 2008

							Data from VGChartz.com
							Annual Unit Sales Volume (North America)
Title	Publisher		Release (M)		Release (Y)		2004		2005		2006		2007		2008 ¹		Total
Spider-Man 2		Activision		June		2004		263,598		299,598		90,263		0		0		653,459
Fantastic Four		Activision		July		2005		-		281,043		98,748		0		0		379,791
Ultimate Spider-Man		Activision		September		2005		-		411,458		273,840		0		0		685,298
X-Men Legends II - Rise of Apocalypse		Activision		September		2005		-		380,766		333,684		24,322		0		738,772
X-Men: The Official Game		Activision		May		2006		-		-		73,766		0		0		73,766
Spider-Man Battle for New York		Activision		November		2006		-		-		33,253		38,024		0		71,277
Marvel Ultimate Alliance		Activision		October		2006		-		-		1,209,246		2,337,079		231,033		3,777,358
Dragon Ball Z: Budokai 3		Atari		November		2004		739,647		250,637		96,762		6,483		460		1,093,989
Dragon Ball Z: Sagas		Atari		March		2005		-		305,479		57,336		1,332		0		364,147
Dragon Ball Z: Supersonic Warriors 2		Atari		November		2005		-		54,860		63,067		5,650		485		124,062
Dragon Ball Z: Budokai Tenkaichi		Atari		October		2005		-		535,385		332,122		60,007		4,014		931,528
Dragon Ball Z: Shin Budokai		Atari		March		2006		-		-		192,359		25,838		5,022		223,219
Dragon Ball Z: Budokai Tenkaichi 2		Atari		November		2006		-		-		533,916		274,084		20,153		828,153
Megaman Battle Team 5: Double Team		Capcom		June		2005		-		29,819		24,131		1,677		132		55,759
Megaman: Maverick Hunter X		Capcom		January		2006		-		-		118,586		4,228		466		123,280
Megaman ZX		Capcom		September		2006		-		-		85,306		29,154		2,465		116,925
Naruto: Clash of Ninja Revolution		D3Publisher		March		2006		-		-		425,407		277,614		141,511		844,532
Marvel Nemesis: Rise of the Imperfects		Electronic Arts		September		2005		-		322,989		503,837		137,166		4,985		968,977
Superman Returns		Electronic Arts		November		2006		-		-		150,968		38,486		0		189,454
Yu-Gi-Oh: Nightmare Troubadour		Konami		August		2005		-		111,345		38,890		3,195		303		153,733
Ghost in the Shell: Stand Alone Complex		Namco Bandai		October		2005		-		24,909		32,850		4,283		415		62,457
Pokemon Dash		Nintendo		March		2005		-		175,193		25,383		5,547		1,208		207,331
Pokemon XD: Gale of Darkness		Nintendo		October		2005		-		381,058		174,981		82,615		0		638,654
Pokemon Trozei		Nintendo		March		2006		-		-		176,527		33,816		5,124		215,467
Pokemon Ranger		Nintendo		October		2006		-		-		522,294		445,178		64,845		1,032,317
Pokemon Mystery Dungeon: Blue Team Rescue Team		Nintendo		September		2006		-		-		808,695		267,112		30,010		1,105,817
Pokemon Mystery Dungeon: Red Team Rescue Team		Nintendo		September		2006		-		-		675,387		152,966		0		828,353
Naruto: Ninja Council 2		Tomy		October		2006		-		-		6,061		6,504		618		13,183

Summary Statistics
	Total Annual Unit Sales Volume (North America)

Count		28
Min		13,183
LQ		123,867
Median		371,969
Mean		589,324
UQ		832,398
Max		3,777,358
Std Dev		727,987
*Mean + 2Std Dev**		2,045,298
*Mean - 2Std Dev**		(866,651	)
CV		1.24

Note:

¹Annual Unit Sales Volume (North America) for 2008 includes data for the period of January through April.

Source: VGChartz, American Chart (Yearly). http://vgchartz.com/ayearly.php

SANLI PASTORE & HILL, INC.

141

Appendix H: The Process of Business Valuation and Diligence Procedures

The process of performing a business valuation and the necessary diligence procedures and information requirements for a business valuation are dictated by the professional standards by which a professional appraiser must abide. The following excerpts present relevant appraisal standards set forth by the American Society of Appraisers and the Appraisal Foundation in addition to factors to be considered in Internal Revenue Service Revenue Ruling 59-60.

American Society of Appraisers’ Business Valuation Standards

BVS-I: General Requirements for Developing a Business Valuation

Section III — Information Collection and Analysis:

The appraiser shall gather, analyze, and adjust relevant information to perform the valuation as appropriate to the scope of work. Such information shall include the following:

Characteristics of the business, business ownership interest or security to be valued including rights, privileges and conditions, quantity, factors affecting control and agreements restricting sale or transfer.

Nature, history, and outlook of the business.

Historical financial information for the business.

Assets and liabilities of the business.

Nature and conditions of the relevant industries which have an impact on the business.

Economic factors affecting the business.

Capital markets providing relevant information, e.g. available rates of return on alternative investments, relevant public stock transactions, and relevant mergers and acquisitions.

Prior transactions involving subject business, interest in subject business, or its securities.

Other information deemed by the appraiser to be relevant.

The Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice

Standards Rule 9-4(b)

Collect and analyze relevant data regarding:

(i)

the nature and history of the business;

(ii)

financial and economic conditions affecting the business enterprise, its industry, and the general economy;

(iii)

past results, current operations, and future prospects of the business enterprise;

(iv)

past sales of capital stock or other ownership interest in the business enterprise being appraised;

(v)

sales of similar businesses or capital stock of publicly held similar businesses; and

(vi)

prices, terms, and conditions affecting past sales of similar assets.

142

Internal Revenue Service Revenue Ruling 59-60

Section 4. Factors to Consider.

.01

It is advisable to emphasize that in the valuation of the stock of closely held corporation or the stock of corporations where market quotations are either lacking or too scarce to be recognized, all available financial data, as well as all relevant factors affecting the fair market value, should be considered. The following factors, although not all-inclusive are fundamental and require careful analysis in each case:

(a)

The nature of the business and the history of the enterprise from its inception.

(b)

The economic outlook in general and the condition and outlook of the specific industry in particular.

(c)

The book value of the stock and the financial condition of the business.

(d)

The earning capacity of the business.

(e)

The dividend-paying capacity.

(f)

Whether or not the enterprise has goodwill or other intangible value.

(g)

Sales of the stock and the size of the block of stock to be valued.

(h)

The market prices of stock of corporations engaged in the same or a similar line of business having their stocks actively traded in a free and open market, either on an exchange or over-the-counter.

Based on the above standards, it is clear that the business valuation process includes the following:

Analysis of business operations

Financial statement analysis

Projections of revenues and earnings based on reasonable expectations of future performance

Qualitative and quantitative industry analysis

Competition analysis

Economic analysis

Valuation analysis

Reach a conclusion of value

143

APPRAISERS CERTIFICATION AND CONTINGENT AND LIMITING CONDITIONS

The appraisers whose signatures appear below certify that except as otherwise noted in this appraisal report and to the best of our knowledge and belief:

The statements of fact contained in this report are true and correct to the best of SP&H and its staff members' knowledge and belief. No matters affecting the conclusions have been knowingly withheld or omitted.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, unbiased professional analyses, opinions, and conclusions.

Our compensation for this appraisal is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or use of, this report.

Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the American Society of Appraisers’ Business Valuation Standards.

No one provided significant professional assistance to the persons signing this report.

No responsibility can be taken by SP&H for the inability of the owners to sell Platinum Studios, Inc., or any of its divisions or subsidiaries, or the Intellectual Property, or any other equity interest or other ownership interests at the appraised values.

This appraisal and its conclusions are subject to review upon presentation of data that is undisclosed or not available as of the date of this report.

No responsibility is assumed for matters legal in nature nor is any opinion rendered as to the title, which is assumed to be good.

The ownership information furnished to the appraisers is assumed to be correct.

10.

The only liabilities and encumbrances against assets considered are those reflected on the financial statements provided.

11.

The fee for this appraisal report does not contemplate appearance in court or before other governmental agencies as an expert witness. However, the appraiser will appear if prior arrangements are made. Expert witness testimony will be compensated for at the appraisers' professional fee rates.

144

12.

Neither all nor any part of this report, particularly as to the conclusion and the identity of SP&H and its staff members, shall be conveyed to the public through advertising, public relations, news or other media without the prior written consent of SP&H. SP&H’s report is confidential and includes proprietary data that is the property of SP&H. Disclosure of any portion of SP&H’s report to unauthorized third parties, including competitors of SP&H or other consulting entities, can result in significant economic damages to SP&H. Client hereby agrees that SP&H’s report will not be disclosed to any third parties without SP&H’s expressed written consent.

13.

Our opinion is necessarily based on economic, market, financial, and other conditions, as they exist, and on the information made available to us, as of the date of value, March 31, 2008. We reserve the right to amend our opinion if additional information is made available.

14.

The business being valued is Platinum Studios, Inc. The purpose of this appraisal is to determine the fair market value and fair value of a 100% equity ownership in the Intellectual Property held and controlled by Platinum Studios, Inc. The function of the valuation is to provide information that may be used by management to raise additional capital for the Company.

15.

The date of value utilized in our analysis is March 31, 2008. The use of a different date of value could substantially impact the opinions herein.

Dated: June 12, 2008




Nevin Sanli, ASA		Thomas E. Pastore, CFA, ASA
President		Chief Executive Officer
SANLI PASTORE & HILL, INC.		SANLI PASTORE & HILL, INC.
a California Corporation		a California Corporation

145

Dates Referenced Herein and Documents Incorporated by Reference

This ‘8-K’ Filing	Date	Other Filings

	1/1/16
	1/1/14
	8/31/11
	6/1/11
	1/30/11
	1/1/11
	12/31/10	10-K, NT 10-K
	6/30/10	10-Q, NT 10-Q
	1/30/10
	1/1/10
	12/31/09	10-K
	2/28/09
	1/1/09
	12/31/08	10-K, NT 10-K
Filed on:	6/20/08
For Period End:	6/12/08
	4/1/08
	3/31/08	10-K, 10-Q
	3/28/08
	3/22/08
	3/13/08
	2/29/08
	2/1/08
	1/18/08
	1/10/08	SB-2/A
	1/9/08
	1/1/08
	12/31/07	10-K
	12/17/07
	9/4/07	SB-2
	8/14/07
	5/7/07
	1/1/07
	12/31/06
	9/16/06
	9/15/06
	9/1/06
	3/22/06
	12/31/02
	11/20/96
		List all Filings

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Filing Submission 0001144204-08-036070 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Platinum Studios, Inc. – ‘8-K’ for 6/12/08 – EX-99.1

On: Friday, 6/20/08, at 1:02pm ET · For: 6/12/08 · Accession #: 1144204-8-36070 · File #: 333-145871

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Current Report — Form 8-KFiling Table of Contents

EX-99.1 — Miscellaneous Exhibit

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Dates Referenced Herein and Documents Incorporated by Reference

Current Report — Form 8-K
Filing Table of Contents