WE GOT GAME. Investment Opportunity in Interactive Entertainment

WE GOT GAME. Investment Opportunity in Interactive Entertainment

The Opportunity Company mission and background Product portfolio Business model Special relationships Licenses The opportunity Addressable markets Positioning and market growth Competitors Distribution partners and content partners Financial projections Capital requirements and use of proceeds Exit scenarios Footnotes Contact information

Company Mission Replay s vision is to be the game industry s premier digital distribution-based publisher of evergreen games for Gen X and Gen Y Through acquisition of top-tier licenses, as well as through development and acquisition of original IP, Replay will recreate games for multiple popular platforms, including mobile devices, tablets, PlayStation, XBOX, Nintendo handhelds, PC/MAC, and online cloud services, on a variety of the most popular operating systems By incorporating the latest technologies such as cross-platform engine Unity 3D, HD graphics, surround sound, voice, and video, Replay will ratchet up the quality of play in classic games, creating a new, more involving user experience in games players already know and love

Company Background Team Paul Trowe, 25+ year veteran of the interactive entertainment industry. Sierra, Activision, Atari, etc. Successful liquidity event from the sale of Pulse Interactive in 2006 Josh Mandel, Chief Creative Officer, Al Lowe, & team has over 10 years together at Sierra On-Line History Founded in 2008 based on a desire to bring traditional external game development models to new channels for digital distribution Positioned in rapid growth markets Mobile: ios AppStore and Android Marketplace Tablets: ipad and Android, Ultra-Books Platforms: Facebook, XBLA, PSN, Windows, Mac, Cloud Ongoing opportunity Revenue generation growth through sourcing and distribution to fastest-growing markets Constant content acquisition and immediate low-cost distribution Product mix: 75% branded, 25% original IP

Product Portfolio Achievements Intel s largest third-party game publisher for their own cross-platform AppStore, AppUp Potty Racers: #2 itunes game for 28 days straight Won Most Addicting Game of the Year 2009 Ongoing content updates employed to keep game fresh Partnered with The History Channel on a multi-platform AAA title with perpetual royalties Historical Work Potty Racers 1 and 2 total over 2 million paid downloads Developed and published multiple award-winning game Vanessa Saint-Pierre for ios, Windows Phone 7, Android, and PC (demo to purchase conversion of 14% on avg.) Developed Dr. Fizzwhizzle's Animal Rescue for Wii Sales Highlights Over 2 million downloads of Potty Racers 1 on ios via Replay s relationship with MTV Dr. Fizzwhizzle's Animal Rescue Wii game published in 2009 and distributed by Conspiracy Entertainment exceeding sales projections

Business Model Case Study: Top Shot: The Game Partner: The History Channel Developer: Cerebral Fix Profitable development costs and perpetual royalty based revenue stream We scale while we sleep! Replay s business model is multifaceted, enabling multiple revenue streams from: Game development and publishing IP acquisition, porting and publishing Development services with perpetual revenue (SAS) Content aggregation services Worldwide content distribution Replay is not in the typical hit driven business plagued by traditional video game publishers. Replay takes proven brands, adds it s special sauce cultivated over decades of development and publishing experience, and brings them to new platforms.

Special Relationships Intel Sponsorship: Intel has invested hundreds of thousands of dollars over the past two years for Replay to acquire, develop, and publish content for its AppUp Center. Replay is Intel s largest AppUp center publisher Asian Distributors: Replay has established more relationships with distribution partners in Asia than any other publisher, enabling it to exploit its early foothold in this lucrative market Prestigious distribution partners include Intel, Microsoft, Apple, Google, and Sony, as well as multiple mobile device OEMs Replay s largest content partners include Digital Chocolate, A&E Television Network, The History Channel, and MTV

Licenses Replay has acquired exclusive rights to develop, publish, and distribute the entire Leisure Suit Larry game franchise. LSL, which was first released in the 1980s and sold over 10 million units for PC alone and is Replay s flagship product. Highly branded and original IP: Top Shot, a History Channel reality show in which sharpshooters compete with historical-based weapons and modern challenges. Vanessa Saint-Pierre, an addictive 3D adventure puzzle game awarded Best Design at the third annual Independent Game Developers Contest in 2011, and nominated for Best Design by the Academy of Interactive Arts & Sciences. Properties will be developed for iphone/itouch, ipad, Android devices and tablets, MAC, PC, XBLA, PSN and Cloud-based gaming platforms such as OnLive and Gaikai.

The Opportunity Replay is seeking capital of $2mm on a $4m pre / $6m postmoney valuation. On a fully diluted basis our capital structure is as follows: Total number of shares: 12,000,000 Series A preferred stock 4,000,000 Common stock 8,000,000 Common stock: Founders shares 7,000,000 ESOP 1,000,000

The Opportunity The rapid growth of tablets & smart phones has created an enormous opportunity: Replay will leverage experience and relationships to fill existing distribution pipelines with established, recognizable brands and products Tablets & smart phones are the key to the future of the interactive entertainment industry Latest research shows consoles declining in sales and hand-held computing grabbing an even larger market share Replay s commoditized resources will enable it to: Scale through our external developer network Eliminate high internal development cost and turnover Keep company focused on operational efficiency and profit

Use of Proceeds Scale the business! Complete the publishing of featured properties Leisure Suit Larry series (2-7) Vanessa Saint-Pierre (sequel) Brand partners (more branded SAS partnerships with tier 1 media clients) Expand marketing and sales efforts Licensing of existing content into more channels Expand Asian presence Build key relationships with platforms Acquire new IP and Licenses Develop/Publish seven new products by Q4'13 Secure exclusive product for growth Establish an international distribution agency for developers License and publish third-party content worldwide

Market Growth Mobile gaming is predicted to reach $18 billion by 2014 and have 16.6 percent growth rate annually. Digitally distributed video games have experienced a whopping growth of 220% since April 2010. 6.8 million ios and Android devices were activated and 242 million applications were downloaded on Christmas Day 2011 alone. Revenues generated for online games in China were up 12.6 percent in the second quarter of 2011. Total reported revenue was $1.35 billion USD.

Addressable Market Mobile marketplace, smart phone growth We predicted the installed base for mobile gaming to be in the millions back in 2003. Now it is not only here to stay but is growing rapidly. Connectivity between platforms is a key driver of marketing success Cross-platform playability leverages word-of-mouth marketing Cross-promotion of Replay s products maximizes marketing impact Digital distribution is growing Digital game revenues are forecasted to increase by 16% year-onyear in 2011 to reach $24 billion This means that allows us, as publishers, to extend the product life of digital games with downloadable content that continually updates the title s ability to engage the gamer

Positioning Replay is well positioned for scalability Replay will grow dramatically in the next three years due to the proliferation of partner brands published to smart phones and tablets, and to the rapid transition by the industry toward digital distribution High profit margins Because digital distribution has no cost of goods, and experiences low product return rates (3% versus 20% for traditional hard goods), profit margins are extremely high compared to typical distribution methods Larger-than-life opportunities Replay s top-tier brands, along with industry growth and trends, will ensure Replay s success

Competitors There is no shortage of competitors in our sandbox Having one publisher that is platform agnostic, has multiple revenue streams, AAA branded IP, and a global reach is rare Competitors: Mobile Console PC/ Mac / Cloud AAA Branded IP Digital Distribution Strong partnerships Aspyr Media X X X 505 Games X X X Conspiracy Entertainment X X Mastiff Games X X X Spacetime Studios X X X Critical Mass Interactive X X Heatwave Interactive X X X X Replay Games X X X X X X

Revenue Projections Notable items: No debt Profitable Perp. rev. stream We can scale Current 2011 revenue: $410,000 garnered from development services, licensing, royalties, and sponsorships Representative example based on Leisure Suit Larry 1: Platform Lifecycle PC / MAC $1,749,000 2 years ios $449,000 1 year Android $219,500 1 year XBLA $72,400 1 year PSN $72,400 1 year Cloud $874,000 1.5 years Total $3,436,300

Exit Scenarios Acquire for Distribution Videogame publishers Existing social / mobile firms looking for other avenues of growth Aggregation players Acquire for products and revenues Strength of portfolio, financials Less optimized exit Acquire for relationships / exclusivities Platform maker, brand relationships key Value from long-term deals and rights Social and mobile talent to expand complementary offerings Capacity / talent driven Based on product quality, bench strength of team Target is 5-7x revenue The truth is, nobody knows what the revenue multiplier will be; in 2000 it would be 20x and in 2008 it would 1x

Distribution Partners

Content Partners

Contact Paul Trowe, CEO paul@replaygames.com (512) 970-0097

Additional Slides Please click the link below to see the interview with Replay CEO Paul Trowe and legendary game designer Al Lowe which aired on SpikeTV February 17 th 2012: Copy and paste: http://youtu.be/1eu-ndmne00?hd=1 Clickable link: here

Footnotes Venture Beat http://venturebeat.com/2012/02/16/steam-powered-infographic Games Industry Biz http://www.gamesindustry.biz/articles/2011-12-07-androidmarket-hits-10-billion-app-downloads#justposted Flurry: Holiday 2011 - Breaking the One Billion App Download Barrier http://blog.flurry.com/bid/79928/holiday-2011-breaking-the-one- Billion-App-Download-Barrier Industry Gamers http://www.industrygamers.com/news/mobile-gamingpredictions-for-2012/

Footnotes Gamasutra.com http://www.gamasutra.com/view/news/36880/china_sees_126_ Growth_In_Q2_Online_Gaming_Revenues.php Ovum http://www.thealistdaily.com/news/digital-games-projected-at-53- billion-by-2016/ Fierce Mobile Content http://www.fiercemobilecontent.com/story/flurry-smartphone- game-revenues-eclipse-nintendo-ds-sony-psp/2011-11- 10?utm_medium=nl&utm_source=internal Pyramid Research http://www.pyramidresearch.com