As the music division of the OFW Entertainment Group we off

1

• MUSIC INVESTMENT
• OFW Music is one of the Britains leading
  developers of urban music intellectual property
  rights (IPR). As the music division of the OFW
  Entertainment Group we offer portfolio investment
  in recording artist albums. We sign between 4 and
  5 acts a year to 5 album contracts as well as
  publishing deals, this puts us in the optimum
  position to maximise all business opportunities
  that may arise.
• OFW Music distributes music in the British
  territory and uses third party distributors for
  logistical purposes across Europe, including
  France, Germany, Spain, Italy, Denmark and
  Switzerland. Our strategy rather than licensing
  Europe as separate territories is to treat it (in
  marketing terms) as a country and thereby achieve
  similar results to our US counterparts.

2

• MUSIC INVESTMENT
• This includes advertising in publications with
  circulation over 100,000 with a readership across
  Europe. Getting our advertising right is key to
  achieving the most from our limited resources.
  Our strategic marketing campaigns are designed to
  maximise returns on investment as we arent
  interested in the scatter gun approach. We combat
  this by targeting our niche audience and
  maximising it by spreading our reach across
  Europe.
• OFW Music does attend international trade shows
  such as MIDIM and will license foreign
  territories such as the US, Far East, Middle
  East, Australasian and African territories. Over
  the last five years we have established strategic
  relationships that will benefit our product sales
  by allowing us to sell as a global company,
  however with one brand, through G-Hop our label.
  

3

• MUSIC INVESTMENT
• OFW Music is our music distribution, publishing
  and licensing division but our consumer assets
  the OFW Entertainment Group will aligns movie and
  TV projects with OFW Music to create soundtracks
  in order to raise the profile of our signed
  artists to promote individual album sales growth.
  
• G-Hop being the cutting edge of OFW Music has
  worked incredibly closely with Grime artists over
  the last 3 years to build a reputation as the
  preeminent label for the genre in terms of
  opportunities for artists. Through the G-Hop
  Soul, Platinum and Classic compilation albums
  G-Hop has worked with pretty much every
  noteworthy artist in the genre. We are now taking
  that to new levels by signing 4-5 five album
  deals a year with flagship UK and through
  territory licensing US artists.

4

• MUSIC INVESTMENT
• G-Hop compilation CDs has given us the
  experience of pulling together compilation albums
  with the strongest artists in the game, its this
  experience that we will duplicate when pulling
  soundtrack albums together. Miss Dynamite, KANO
  and Sway all appeared on G-Hop compilations
  before they climbed the charts to national
  recognition making our ability to tap into the
  best unexploited talent well known.
• UK home grown urban artists have received little
  in the way of support from major labels namely
  because they still lack the understanding of how
  to effectively market the product and organically
  grow credible consumer awareness of the sectors
  artists.

5

• MUSIC INVESTMENT
• Investment
• Music as an investment in your portfolio
  probably sounds like a very risky proposition
  without investigation. Our investment structure
  on a portfolio based, spreading the risk over 4
  albums to be distributed within the European
  territories and licensed to the rest of the world
  territories. OFW Music investments have a two
  year wind up period and are therefore a quick
  turn around.
• The investment total is worth 400,000 on 4
  albums to be released over the course of a
  financial year. The investment of 100,000 in
  each album is broken down in the following way

6

• MUSIC INVESTMENT
• Investment
• Artist album advance fee 10,000
• Album production costs 20,000
• Two music promo production costs 20,000
• Dedicated website, Marketing artwork and
  photographs 3,000
  
• Direct consumer advertising 22,000
• CD pressing of 50,000 units 25,000 including
  VAT
  
• Total investment 100,000

7

• MUSIC INVESTMENT
• Each album has project managers as overseers in
  the way of executive producers and business
  affairs employed by OFW Music to keep albums on
  schedule and on budget. The producers
  collaborating on the albums are signed to OFW
  Publishing, which keeps their initial productions
  fees down as they earn high returns from
  publishing returns (radio play, TV and licensing
  royalties).
• This two year investment is available to those
  with a minimum of 5,000 to invest, with the risk
  being diversified and spread over four albums.
  OFW Music will release a similar investment
  opportunity every financial year in order to
  absorb new hot talent to our label G-Hop. OFW
  Music Distribution (PD) Investment Chest 1 is
  available for investment through 2007 for albums
  produced in the same financial year, which will
  wind up in April 2008.

8

• MUSIC INVESTMENT
• OFW Music Distribution (PD) Investment Chest 1
  is a two year investment in 4 recorded albums
  over the course of a financial year. The most
  important element to most portfolio investors is
  the return on investment (ROI) and the way that
  investment is recouped. The recoupement of
  100,000 in each album is broken down in the
  following way

9

• MUSIC INVESTMENT
• Recoupement on Investment
• Investment recoups at 120 in the favour of you
  the investor before an investor/company split of
  Net Profits takes place at a rate of 50/50
  
• On an investment of 5,000 that is a return of
  6,000 before an investor/company split at the
  above rate
  
• The Net Profits from sales will be deposited via
  BAC to your nominate account on a monthly basis
  with statements posted to your home or business
  address
• The return on investment will be made available
  from the first day of sales recoupement
  
• Sales sources include physical CD product,
  digital download, mobile phone ringtone and video
  download
  

10

• MUSIC INVESTMENT
• 50,000 CDs will be pressed on the initial run
  for physical sales, with a wholesale value of 5
  each. As a distributor we sell product to
  retailers such as Virgin and HMV, making a 10
  provision for damaged stock returns, which means
  financially we only account for 45,000 CDs. The
  wholesale value of the initial press run is
  225,000 (45,000 x 5 225,000).
• The initial CD press run, which is 25 of the
  investment, recoups 120,000 (20 ROI) plus 50
  of Net Profits from the first pound of sales.
  Because we know creative investments are higher
  risk than certain traditional investments we
  balance that by returning a substantial profit on
  your risk capital.

11

• MUSIC INVESTMENT
• Sales Forecasts
• OFW Music base sales on comparable product
  released in the UK to deliver successful returns,
  which means the investment has to be spent in the
  right way first. To gain a significant return we
  value the production costs in a realistic way,
  which is where many creative investments go
  wrong. The OFW Entertainment Group is half art,
  half business and that means assessing the market
  and knowing our niche while supplying them with
  the hottest product.
• Our sales forecasts are based on Low, Medium and
  High case scenarios. These case scenarios will
  affect the return on your investment across the
  portfolio of 4 albums. Our sales forecasts are
  broken down in the following way

12

• MUSIC INVESTMENT
• PHYSICAL SALES
• Low sales 45,000 CD units worth 225,000
  GrossMedium sales 100,000 CD units worth
  500,000 GrossHigh sales 250,000 CD units worth
  1,250,000 Gross
• The above sales forecasts are for CD albums with
  a wholesale value of 5 per unit
  
• DIGITAL SALES
• Low sales 30,000 downloads worth 28,500
  GrossMedium sales 70,000 downloads worth 66,500
  GrossHigh sales 120,000 downloads worth 114,000
  Gross
• The above sales forecasts are for single digital
  download sales at 0.95p per single
  

13
(No Transcript)
14

• MUSIC INVESTMENT
• MOBILE PHONE SALES
• Low sales 30,000 downloads worth 90,000 Gross
• Medium sales 70,000 downloads worth 210,000
  Gross
  
• High sales 120,000 downloads worth 360,000
  Gross
  
• The above sales forecasts are for single music
  promos and ring tones at 3 each
  
• As you can see from the previous pages there
  are multiple income strands to exploit that
  derive from the sales of one album. The next
  revenue stream is international licensing of
  territories to distributors who have a presence
  and experience in particular and will maximize
  our return. The beauty of intellectual property
  rights (IRP) is that they are exploitable in
  numerous territories and numerous broadcast and
  sales format platforms.

15

• MUSIC INVESTMENT
• The international licensing sales forecasts are
  again based on Low, Medium and High outcomes.
  These outcomes will affect the return on your
  investment across the portfolio of 4 albums. Our
  sales forecasts are broken down in the following
  way
• Territory Licensing Sales Forecasts
• INTERNATIONAL ALBUM LICESING
• US Low Licensing Fee 25,000Far East Low
  Licensing Fee 10,000Australasian Low Licensing
  Fee 15,000Asian Low Licensing Fee
  8,000Russian Low Licensing 10,000African Low
  Licensing 10,000
• The above sales forecasts are for album
  licensing in the above territories based on low
  case scenarios

16

• MUSIC INVESTMENT
• INTERNATIONAL ALBUM LICESING
• US Medium Licensing Fee 60,000Far East Medium
  Licensing Fee 25,000Australasian Medium
  Licensing Fee 40,000Asian Medium Licensing Fee
  20,000Russian Medium Licensing 25,000African
  Medium Licensing 25,000
• The above sales forecasts are for album
  licensing in the above territories based on
  medium case scenarios
  
• US High Licensing Fee 100,000Far East High
  Licensing Fee 40,000Australasian High Licensing
  Fee 70,000Asian High Licensing Fee
  35,000Russian High Licensing 40,000African
  High Licensing 40,000
• The above sales forecasts are for album
  licensing in the above territories based on high
  case scenarios
  

17

• MUSIC INVESTMENT
• By clicking below on the icon you can download
  the investment details in word form and see the
  two artists who will both be signed to our label
  G-Hop under 5 album contracts and publishing
  deals.
• We intend to distribute them across Europe and
  license the existing world territories, not all
  listed in the High, Medium, and Low licensing
  forecasts.

Dean Okai OFW Music CEO