Strong Historical Track Record
While Mercury's principals have been succussfully acquiring, operating, and selling media assets since the mid-eighties, Mercury's most recent track record starts in 1995. Mercury's 1995 and 2000 vintage efforts have produced strong returns, far surpassing the top quartile of the buy-out fund benchmarks.

The Fund is Run by Principals with Actual Operating Experience in the Media Business
Charlie Banta has been in the media business for over 28 years successfully operating and/or investing in media companies. Sandy Miller, the Fund's Controller, has spent over 29 years working in the media business in various financial positions. Teo Balbach has eleven years of software experience, the last five of which focused on the Internet distribution of music and other entertainment. Mercury's experience in private equity investing and media operations is critical in identifying attractive media investments and in identifying the appropriate management teams to maximize the value of those investments.

Investment Philosophy Focused on a Combination of Growth Potential and Downside Protection
Mercury's investment philosophy is derived from some of the great "value" investors of our times like Benjamin Graham and Warren Buffett. Mercury's investment approach involves looking for businesses with superior growth prospects. Mercury's targets may hold more risk than a typical Graham/Buffett position, however each investment should provide some form of downside protection against the loss of invested capital.

Well Established Network for Sourcing of Transactions
Mercury has a wide range of contacts for sourcing transactions, including:

• Owners, managers and investors in media companies with whom Charlie Banta has worked for the last 28 years in the U.S.
• Prominent media brokers with whom Mercury's principals have worked for the last 28 years.
• Personal associations with partners and senior executives in major investment banking firms with successful media departments.
• Media investors and owners of media companies in Canada with whom Charlie Banta has worked.
• Personal associations with principals in various other private equity firms who are experienced media investors.

Media Companies Are Projected to Grow at a Faster Rate Than the Economy
Paul Kagan of Paul Kagan Associates Inc. is one of the premier financial analysts for the media, communications and entertainment industries. In a media study, Kagan's MediaCast 2008, Kagan said: "American media, entertainment and communications are growing three times as fast as the nation's economy and over the next decade their revenues could more than double to nearly $1.1 trillion."

Consolidation Opportunities in the Media Industry
There is a confluence of powerful forces in many sectors of the media industry driving companies towards consolidation. Government deregulation, new technologies, the need for older media companies to achieve the proper scale, cross-promotional branding opportunities, and globalization all create consolidation opportunities. Cost and revenue synergies naturally evolve from properly executed consolidation strategies.

Ability to Do Larger Deals by Attracting Other Private Equity Funds as Co-Investors
Mercury has excellent relationships with a number of larger private equity funds. The Fund's Millennium joint venture, for example, has allowed Mercury to participate in several investments that it would have been unable to finance on its own.

Enhanced Returns Via Leverage
Mercury has excellent relations with a number of large and mid-size banks experienced in media lending. The Fund expects to capitalize on these relationships to enhance its return from portfolio companies. For example, the Bank of New York organized the senior debt syndicate of the Millennium Radio Group. Mercury's principals have worked with The Bank of New York since 1990.