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of Spider-Man 2, SPE is poised for another

outstanding year at the box office. In addition,

SPE will continue to capitalize on the rapidly

growing worldwide home entertainment

market by generating revenue from both new

releases and its library of more than 4,000 films.

The television group had an exceptional year

in 2003. Employing a creative and economic

approach to program development, the

television production business successfully

launched Joan of Arcadia in 2003, one of the

highest-rated new shows on U.S. prime time

television. Syndication sales such as the record-

setting third cycle syndication of Seinfeld, and

the ongoing success of game shows such as

Wheel of Fortune and Jeopardy! and daytime

dramas such as the Emmy award-winning The

Young & the Restless and Days of Our Lives

also continue to contribute significantly to

SPE’s profitability.

Internationally, SPE continues to expand its

local television programming production and

to enhance the value of its international library.

Building on its investments in more than 35

networks, SPE is extending its AXN and

Animax network brands through new launches

in important territories.

Developing new revenue streams through its

digital businesses is a priority for SPE. With

nearly 1,700 films and television programs

already digitized, SPE is well-prepared to offer

its library to new distribution outlets. More-

over, SPE plans to support the launch of the

PSP portable player and the Blu-ray high

definition formats. Having established a

leading position in digital effects and anima-

tion through Sony Pictures Imageworks, SPE

looks to extend further into digital content

with Sony Pictures Animation, its new

animation unit that will develop and produce

all-computer generated feature films.

On the cutting edge of all aspects of digital

entertainment, SPE continues to work closely

with the Motion Picture Association of

America (MPAA) on efforts to combat piracy

and to protect its content around the world.

Sony Pictures Imageworks moves

forward with IMAGEMOTION™

Sony Pictures Imageworks is advancing to the

next level of digital content creation with

IMAGEMOTION™, the new proprietary perfor-

mance-motion-capture system developed for the

movie

The Polar Express

, starring Tom Hanks and

directed by Robert Zemeckis. Imageworks is well

known as an award-winning visual effects and

character animation facility responsible for the

groundbreaking visual effects in such films as

Spider-Man

Spider-Man 2

Stuart Little

Bad Boys

Cast Away

Harry Potter and the Sorcerer’s

Stone

and the Academy Award®-winning CG-

animated short film

The ChubbChubbs!

IMAGEMOTION™ is a revolutionary system

capable of simultaneously recording high-fidelity

facial and body motions of many actors in a

particular scene. This technology enables creation

of computer-based characters with remarkably

realistic facial expressions and human motions.

Currently, a number of projects are under devel-

opment at Imageworks, many of which utilize the

IMAGEMOTION™ process. Imageworks will

continue to invent cutting-edge technologies and

produce groundbreaking visual experiences for

the next generation of digital entertainment.

Joan of Arcadia

is an hour-long

drama that follows sixteen-year-

old Joan Girardi (Amber Tamblyn)

as she struggles with the uneasy

life of a teenager, further compli-

cated when God visits her through

a variety of different people.

Although she initially questions

her sanity, Joan eventually follows

His advice, finding truth in the

old adage that “God works in

mysterious ways.”

Early Bloomer

, a CG

animated short film, is a

comical coming-of-age tale

about an awkward, but

adorable, tadpole just

trying to fit in and keep up

with his mischievous and

playful friends.

Big Fish

Tim Burton’s

Big Fish

, released

in 2003, is the heartwarming

tale of the fabled relationship

between a storytelling father

and his estranged son, who is

trying to separate fact from

fiction and come to terms

with his father’s great feats

and great failings.

S.W.A.T.

, a summer 2003 hit,

is an explosive action-thriller,

inspired by the popular 1970s

television series. In the film,

an elite law enforcement unit

transporting a drug lord to

federal prison is pursued by a

ruthless and well-armed band

of mercenaries trying to free a

kingpin for a $100 million

reward.

Spider-Man 2

Two years have passed since

Peter Parker walked away from

his longtime love and decided

to shoulder great responsibility

as Spider-Man. In

Spider-Man 2

Peter faces new challenges as

he struggles to balance his dual

identities as Spider-Man and a

college student. The relation-

ships he holds most dear are in

danger of unraveling as he

clashes with a powerful,

multi-tentacled villain.

EverQuest II

currently in devel-

opment by Sony

Online Entertain-

ment Inc. (SOE).

EverQuest II

is the

next generation of

massive-multiplayer

online gaming,

allowing hundreds of thousands of online gamers to come

together in an immense 3D fantasy world for adventure, excite-

ment and social interaction.

Home Electronics Mobile Electronics Game Entertainment Financial Services Other

Pictures Television Inc. and CBS