Archie Comics Entertainment, LLC Contact: Allan I. Grafman 488 Main Avenue, Suite 300 Phone: 203-846-2277 Norwalk CT. 06851 Fax: 203-849-9300 www.archiecomics.com Email: allang@archiecomics.com Business Description: Archie Comics Entertainment, LLC (“ArComEnt”) exploits entertainment opportunities associated with the intellectual properties of its affiliate Archie Comic Publications, Inc. (“ACP”) and the intellectual properties of third parties under license. Lines of Business: Television programs Motion pictures Video and DVD productions Music and musical groups Stage plays Videogame, Online and Internet Activities Licensing & Commercial Tie-ups Place based "Experience" venues Themed restaurants Properties (a sampling): ARCHIE, BETTY, VERONICA & JUGHEAD JOSIE and the PUSSYCATS KATY KEENE SABRINA the THE WEB TEENAGE WITCH Industry: Entertainment, Media, Television, Motion Picture and Licensing Management: Allan Grafman, President Chuck Grimes, CEO Board: Michael Silberkleit Richard Goldwater Greg Battersby Allan Grafman Chuck Grimes Current Investors: $3 million from founders: Michael Silberkleit Richard Goldwater Chuck Grimes Greg Battersby Allan Grafman Fred Mausser Victor Gorelick Use of Funds: • Expand ArComEnt’s operations in 2003-4 • Launch new motion picture and television projects • Retire loans from ACP and founders www.95gowu.com . . Management Team: • Allan Grafman has 25 years experience leading public and private entertainment and media companies. At Tribune Entertainment Company, he served as VP and, together with his team, grew the company from $2 million to over $120 million in revenue. He also served as EVP and CFO of Hallmark Entertainment, VP and GM of Capital Cities Cable Television and, most recently, President /CEO of a media technology company. • Chuck Grimes has been advising ACP and other leading licensors for over 25 years. He is a leading intellectual property and licensing attorney, published author and producer. Competitive Advantage: ArComEnt’s business is uniquely based upon the marketplace awareness of the ACP properties. For more than 60 years, millions of people have read ARCHIE comics each month – more than read SPIDERMAN comics, X-MEN comics, BATMAN comics, SUPERMAN comics, or any other comic. ACP properties are fan favorites. For example, the SABRINA television show ran for seven seasons and was the #1 anchor of ABC’s TGIF Friday night lineup. ArComEnt’s business model is similar to other business successes like Marvel, Disney, Henson, Saban, Sesame Workshop and other intellectual property asset based companies. Consumer Bond and Brand: ArComEnt preserves, builds upon and benefits from the bond of trust which ACP has been able to establish with the consuming public. Over the past sixty years ACP has adhered to an unswerving commitment to produce only socially responsible, morally uplifting, wholesome, family oriented comics and entertainment projects. This commitment has made the properties of ACP that ArComEnt exploits unparalleled consumer brands. ArComEnt also works to affect socially important projects and to support public service endeavors. Past and Current Operations: ArComEnt was established through the acquisition of the intellectual property and licensing assets of Archie Comics Online, LLC and Riverdale Productions, LLC. Among the assets that ArComEnt thus controls is the exclusive right to exploit all non-comic publishing lines of business associated with the ACP properties. The ACP properties have been largely kept off the market in preparation for the launch of ArComEnt. Current Plans and Future Operations: Current Television: • “ARCHIE COMICS’ RIVERDALE STARS Talent Search” television reality series Future Television: • “ARCHIE COMICS’ RIVERDALE” 1-hour live action television dramedy series • “JOSIE AND THE PUSSYCATS” 1-hour live action television dramedy series • “SABRINA SECRETS” ½-hour animated television shows • “CHRISTMAS IN RIVEDALE” holiday live action television special • “MAKING OF ….” live action and animated television shows Current Motion Picture: • “BETTY & VERONICA” live action theatrical motion picture Future Motion Picture: • “AJBVR & THE WEB” live action – CGI theatrical motion picture • “SABRINA THE TEENAGE WITCH” live action theatrical motion picture remake • “KATY KEENE Teen Model” live action theatrical motion picture • “DILTON DOILEY” live action theatrical motion picture • “COMET BOY & THE WIZARD” live action theatrical motion picture www.95gowu.com . . • “JAGUAR” live action theatrical motion picture • “STEEL STERLING” live action theatrical motion picture • “SABRINA MEETS….” series of live action direct-to-video motion pictures Current Music and Live Productions: • “THE ARCHIES” musical group and tour Future Music and Live Productions: • “JOSIE AND THE PUSSYCATS” musical group and tour • “ARCHIE – EVERYMAN” stage play Business Strategy - Strategic Relationships: ArComEnt’s management currently works out of the New York offices of ACP and also the Connecticut offices of Grimes & Battersby, LLP. As ArComEnt finds it makes fiscal sense to do so, ArComEnt will proceed with and incur the capital and operating expenses associated with the launch of new entertainment projects. Often, a project will be pursued without a capital outlay or operating expense obligation on the part of ArComEnt, because the project will be done on a joint venture or licensed basis with a strategic relation partner. For example, a television broadcaster to fund the Riverdale Stars talent search, a record company to create and tour THE ARCHIES musical group, a restaurateur to build and launch themed restaurants, a videogame company to create and launch videogames, etc. Financial Projections: The intellectual property and licensing assets that ArComEnt will now be exploiting have generated millions of dollars in profits for unaffiliated third parties over the years. Now ArComEnt and its shareholders will become the primary beneficiary of these and future successes. Year 1 Year 2 Year 3 Year 4 Year 5 25% of Projected Revenues Expenses (PLEASE REFER TO THE BUSINESS PLAN Profits (Losses) FOR DETAILED FINANCIAL PROJECTIONS.) This confidential Executive Summary is being furnished by ArComEnt to a limited number of investors in consideration of their interest in making an investment in ArComEnt. This Executive Summary is not to be reproduced, distributed or used, in whole or in part, for any other purpose or made available to anyone not directly involved with the decision to invest in ArComEnt. By accepting this Executive Summary, the recipient understands that it is confidential information. All information was gathered from sources deemed reliable, but no representation or warranty is made or implied as to the accuracy or completeness of such information. This Executive Summary does not in any way represent, nor is it intended to be, an offering of securities to the general public This draft dated: 7/242003 www.95gowu.com . .