SONY Project Summary

DraggonsGate Entertainment, LtdTM

presents

DraggonsGate™

The Interactive Fantasy Adventure Park™

SUMMARY11

CONTACTS Keith Eckert John Purdy
Chief Financial Office Chief Operating Officer
Michael Hamilton [email protected] [email protected]
Board Chairman &Founder
[email protected]

DraggonsGateTM Park is so big and so unique, that it is
impossible to experience it all in a single visit

DraggonsGate is to theme parks what
Cirque Du Soleil is to a Ringling Brothers circus

COMPANY OVERVIEW

DraggonsGate™ Parks, Inc., whose parent company is DraggonsGate™ Entertainment, Ltd.
(“DGE”) was established to develop and operate Interactive Fantasy Adventure Parks and
Entertainment Developments. Adventure Park businesses that include; stylized fully interactive
Adventures, Attractions and Activities. DraggonsGate™ Entertainment Developments also
includes themed and water parks, other themed attractions, hotels, retail / dining / nightlife areas
and similar related businesses.

DraggonsGate™ Entertainment, Ltd. is an entrepreneurial organization, structured to recognize,
develop and capitalize on arts and entertainment opportunities in live, animation, electronic, film
and web related technologies. It is our intention to make DraggonsGate™ Parks one of the most
visible, memorable and attractive brand associations in the Themed Entertainment Industry.

To this end, guest satisfaction is not just our goal; it is a minimally acceptable standard. Implicit in
this charge is the company's fiduciary responsibility to its investors and shareholders. This standard
reflects its commitment to creating and maintaining a company culture which honors and rewards
employee integrity, fiscal responsibility and dedication to the achievement of excellence.

PROJECT OVERVIEW

DraggonsGate Park™ is a 1,000+acre Fantasy Park for the entire family, comprised of eight fantasy
“Worlds”. It is staffed with 900 professional costumed characters and hundreds of attractions and
activities designed to provide guests with the opportunity to participate in or witness, live-action
adventures based on the fantasy settings of: Ancient Rome, The City of Ancient Healing, The Battle
Arena, and 3 global bestselling video game ‘Worlds’ of: The Vikings, The Samurai, and The
Knights along with a child’s village based on a “hit” video game with millions of fans.
DraggonsGate Park is fully interactive.

It replaces typical theme park rides with exciting Environments, Adventures, Activities, Shows and
Special Events centered on chart busting ‘hit’ global video games and Hollywood fantasy
characters from the dark ages, Hollywood movies, hit television shows illustrated novels and
mythology. Guests will be afforded numerous opportunities to witness or participate in live-action
mythical, fantasy and historical based adventures in each of DraggonsGate’s eight “Worlds”.
Guests may also elect to visit the world class wellness center, attend chariot races, view or march
in massive parades or sample any of DraggonGate’s hundreds of other Attractions and Activities.
Food offerings will not be traditional amusement park fare. Instead the best Italian Food in Ancient
Rome, the Best Asian in the Samurai Village, fully organic in The Ancient City of Healing. Along
with international retail shopping opportunities, let it be known that DraggonsGate is so big, and
so unique, it is impossible to experience it all in a single visit.

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TRANSACTION PROGRESS

The Company intends to purchase 1079 acres in Georgia, 1,000 acres in Tuxedo Park, New York,
1,400 acres in Austin, Texas and like properties in Northern and Southern California. All have
significant frontal footage easily adaptable to multiple retail and hotel franchises. Preliminary offers
have been accepted, evaluated and are pending the resolution of entitlements and final agreements.
Progress is being reported in defining and responding to local governing restrictions and the
subsequent permitting processes.

Various relationships with contractors and suppliers are being sourced to acquire a Standby Letter
of Credit (SBLC) for the project. Intellectual property and licensing understandings are on file as
well as conceptual designs and organizational structure tables. Each park or venue is a stand-alone
Limited Liability Corporation (“LLC”}.

PROJECT DESCRIPTION

DGE has conceived a proprietary, interactive DraggonsGate Fantasy Adventure Park. Innovatively
presenting live environment and virtual reality versions of a leading international video gaming
developer and DraggonsGate™ Entertainment, Ltd.’s own unique conceptions, The Worlds of
DraggonsGate include: (1) A Child Of Light, (2) Legions; Arthurian Knights, (3) The Warborn;
Vikings, (4) The Chosen; Samurai, (5) The Castle; The Battle For Honor, (6), Rome; The Revenge
of Spartacus, (7) The City of Ancient Healing and (8) Battle Arena, The Court of the Crimson King
to round out the entire family age demographic.

A water park, retail area with shopping, dining, nightlife and mid-level themed attractions,
museums, golf; and hotels are included in the plan. DraggonsGate is not a theme park. It is a fully
interactive adventure fantasy park peopled with over 900 costumed characters from the dark ages,
mythology and fantasy.

SWOT ANALYSI S

The Company’s strengths include skilled and committed executive, operational and management
teams teamed with powerful marketing and advertising budgets. Brick and mortar venue operating
days may be limited by weather and are labor intensive, while the Park enjoys a strong revenue
relationship with the website. Liability insurance premiums may rise along with interest rates and
restrictive safety requirements.

MARKET ANALYSI S

Different lands, experiences and themes are the trend in the $32-billion dollar global theme park
industry as well as a significant increase is seen in in-park spending revenue. DGE intends to
capitalize on the industry’s thematic trending by offering professional quality performances at a
permanent site. In addition, there are millions of Live Action Role Playing (LARP) members
representing annual revenues of $1.5b. Congruently video gaming revenue continues to grow
reaching $93 billion by 2019. A 3.4% growth forecast for the U.S. market represents $11.7 billion
dollars annually. The DraggonsGate Park model is projecting an average daily attendance figure of

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nearly 18,000 guests – two and half million annually. Estimated Draggonsgate in-park time: 8+
hours. Fantasy and Mythology are both timely topics in this extremely lucrative industry.

FUNDING

A financial structure will be created which utilizes as parts of its system a regulated IMF/World

Bank project funding program with credit lines from the European Central Bank and has trading
desks for bank debentures – MTN’s, at HSBC, Credit Suisse, Standard Charter, Barclays, Deutsche,

and Wells Fargo NA (USA only).

SALES AND MARKETING STRATEGY

The “7P Formula” is used to evaluate and reevaluate DGE’s business strategy encompasses
product, price, promotion, place, packaging, positioning and people. It is constantly revisited to
ensure the project remains on track and achieves maximum result in today’s highly competitive
marketplace. The strong real-world brands and existing brand awareness associated with
DraggonsGate™ Entertainment, Ltd. provide a major advantage over competitive theme parks.

A marketing budget of $117m over the first 5 seasons will impact 47 million people within the
immediate promotional target area, along with the word of mouth help to secure the 2 to 4 million
park visitors each season.

PROJECT MANAGEMENT A ND IMPLEMENTATION

Committed executive, operational and management teams are drawn from the executive ranks of
Warner Bros., 20th Century Fox, Six Flags, Universal Studios and Disney. Each is a specialist in
his or her own discipline to execute and maintain a major theme park or entertainment attraction
across a wide spectrum. The team also includes individuals skilled in start-up operations and
funding.

FI NANC I AL P ROJ ECTI ON S AND RI SK ANALYSI S

Analysis o f P ro jected Numb ers

Year 1 Year 2 Year 3 Year 4 Year 5
-
Revenues: - - 346,158,614 270,260,532 273,694,033

Cost of Goods Sold: - 223,469,279 12,991,899 11,737,713 12,746,927
(223,469,279)
Operating Expenses: 288,151,279 125,316,121 111,368,261 115,903,240
0%
EBITDA (288,151,279) 207,850,594 147,154,559 145,043,866

0% 60% 54% 53%

Dep reciat ion 16,920,000 16,920,000 16,920,000

Amortization of Startup Costs 12,003,000 12,003,000 12,003,000

Net Income before Interest and Taxes $178,177,594 $117,669,059 $115,558,366

Interest expense @ 5% 22,263,249 19,480,520 16,496,627

Taxes @ 39.6% 61,742,081 38,882,661 39,228,449

TOTAL ANALYSIS OF PROJECTED NUMBERS $94,172,265 $59,305,877 $59,833,291

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FINANCE RAISING OVERVIEW

The initial budget without a brand association in gaming or film is $526m. Based on the Disney
model of in park stay time, the eight DraggonsGate Worlds each represent some 1,000+ acres; ‘so
big with so much to do and see, that it is impossible to experience in a single visit”, thus making
this Fantasy Park a full family destination attraction.

By associating the development with a known brand which is acceptable to funders, the Company
is able to build out the entire Park at $526 million. Much of what is under discussion and review
with the governing bodies in Georgia, New York, Texas and California affects the overall funding
plan. These kinds of numbers, the stock involved and its dilution, etc., is a very detailed, and in
some instances, a highly confidential matter backed by some very severe non-disclosure
agreements. There will, mutually of course, be no formal agreement until and unless an agreement
of full terms is reached. Simply put, in order to make the type and style of funding required, we
need to be able to speak with funders in a forthright and transparent manner.

PROPOSED USE OF FUNDS

So urce o f Funds $263,310,279 Uses o f Funds Year 1 Year 2
Debt Instruments $263,310,279 Land $45,300,000 $0
Equity Site Improvement $12,257,000 $0
Construction $13,640,648
Total $526,620,558 Infrastructure $6,125,000 $13,640,648
Digital & Game $8,746,671 $0
Marketing $7,500,000
General Expense $6,990,000 $8,746,671
Pre-Opening Expense & Consulting $27,095,000 $7,500,000
Salaries $24,968,504 $6,990,000
IP Partner Lic/Incentive Fee $1,000,000 $27,095,000
Villages $102,430,396 $24,968,504
Contingency $39,598,061
Total $295,651,279 $0
$102,430,396
$39,598,061
$230,969,279

FUNDING

The Ryan Project Funding Program has approved funding 100% of soft costs and hard costs for the
approved project.(www.RyanProjectFunding.com)

Project was submitted and approved as being acceptable, currently approved for 4 sites at $526M
budget each, with anticipation that a 5th site could be added and would be approved.

A financial structure will be created which utilizes as parts of its system a regulated IMF/World
Bank project funding program with credit lines from the European Central Bank and has trading
desks for bank debentures – MTN’s, at HSBC, Credit Suisse, Standard Charter, Barclays, Deutsche,
and Wells Fargo NA (USA only).

Additionally, DraggonsGate is offering a mutually agreeable percentage of Net Cash reserves
directly funded by this process.

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KEY TIE-INS

The development and execution of the first Park Resort Destination Attraction (the first part and
initial execution of the Plan) sets the stage for additional unique developments. By triggering
multiple revenue streams from Park, On-Line and Commercial Development revenues, the
Company is enabled to aggressively enter into a diverse action of mergers and acquisitions,
investments and revenue generating opportunities in the entertainment industry.

The Company intends to carve out and take possession of a portion of the fantasy industry in (1)
Live action, (2) Books & Print Publications, (3) On-line Fantasy Entertainment, (4) Retail, (5)
Music, etc. targeting a multi-billion industry.

DGE is a model based on the convergence of the live experience at its brick and mortar Theme
Park/ Destination and its Online Web Video Gaming site. Based on the enormous online gaming
impact currently occurring and predictably continuing, the Company believes the derivative online
revenues will be substantial.

PRIMARY REVENUE SOURCES

DraggonsGate™ Entertainment, Ltd.’s Park is a complete family entertainment destination
attraction…so big you can’t experience everything in one day. In addition to revenue from park
and concert admission sales, the Company derives revenue from beverage and merchandise sales,
vendor fees, video games and sponsorships, photo and video sales, spa services, private functions,
specialized training and miscellaneous rentals provide additional revenue streams supplementing
branding and merchandising outside the Park.

Costume rentals are included in Admission Fees. Additional revenue may come from commercial
and residential real estate development. Due to the size and number of offerings, In-Park Stay Time
(Disney Model) exceeds 8 hours. It is impossible to experience all that is DraggonsGate in a single
visit.

THE WEB SITE

Stories and adventures, enacted in the park, are embellished into fully interactive, web-based plays.
Each guest's visit can be continued in an "at-home" experience by accessing daily changing,
storytelling technology in which they themselves are starring characters. Costumed characters from
the villages will reprise their roles through episodic, on-line cliffhangers. Curiosity and personal
involvement will stimulate millions of web page turns and ensure a product-active business alliance
with corporate sponsors.

POTENTIAL INTELLECTUAL PROPERTY INTEGRATION

Under consideration as themes for individual DraggonsGate’s worlds are:

• Gladiator • A Knight’s Tale
• First Knight • The Legend of Zorro
• Crouching Tiger, Hidden Dragon

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FUTURE PLANS OUTSIDE OF CURRENT STRATEGY

The market for U.S. theme parks is projected to grow by 3.4% to $11.7 billion and the Amusement
Park, Theme Park and Arcade industry is expected to top $23.5 billion by year 2021. Video game
revenue will rise at a CAGR of 5.7% to reach $93 billion in the same period.

DraggonsGate 2 and 3 will follow in New York and Texas…4 and 5 in Northern and Southern
California. As a proprietary concept, it will require a longer period for planning and design than
the thrill and water parks. The remaining acreage will be developed in future phases, once the above
venues have demonstrated steady consumer demand. As with Disney’s Magic Kingdom in Orlando,
the themed attraction, hotel or other venues will be selected based on which ones will best
compliment the initial venues.

MARKET ANALYSI S

Over $500 million in attendance is generated annually by a fragmented, transitory group of regional
renaissance fairs featuring medieval malls, faux jousting and community theatre level
entertainments. DraggonsGate Entertainment Ltd.™ intends to capitalize on the industry’s
fragmentation by offering professional quality performances at a permanent site, which will attract
visitors in numbers similar to those of traditional theme parks. In addition, there are millions of
Society for Creative Anaconism (SCA) (over 3 million) and Live Action Role Playing (LARP)
(over 1.5 million) members representing annual revenues of $1.5b.

The Company’s model will require significantly less capital expenditure than typical
theme/amusement parks. DraggonsGate’s™ investment is in labor, stories, costuming and
mythological fantasy environments. Traditional amusement park rides cost in excess of $40 million
and must be replaced every few years to stay competitive. Some are nearer $100 million. Admission
to a single themed Disney park is $105 per adult. DraggonsGate™ Entertainment, Ltd.’s Park, with
eight themed lands, is anticipating nearly full-day guest stays.

Estimated in-park time: 8+ hours. Fantasy and Mythology are both timely topics and extremely
lucrative concepts. Average daily attendance figure – 18,000 guests

EXIT STRATEGY:

After several years of profitable operations, the founders of DraggonsGate, may elect to liquidate
their investment in one of several ways. One strategy is to nurture the company for an as yet
undetermined number of years with an accelerating growth rate and proven profitability and sell it
to a larger entertainment company. A company in a related business may find that DraggonsGate
and its products and services are a superior complement to their existing business. In this scenario,
the founder investors can liquidate their investments by selling them in a cash transaction of in a
tax-free exchange of stock. Another option would be to create a public offering of company stock
and holdings. Market acceptance of early products, services and success in a growing successful
brand will make public funding a sensible next step. Lastly, a franchising option may be considered
for future global growth and further development.

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L O C AT I O N S

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