Three Canadian Start-Up Case Studies Michael Kraft Chairman & CEO, Lingo Media October 28, 2010

1. L I N G O M E D I A C O R P O R AT I O N
( TS X - V: L M )
O C TO B E R 2 8 , 2 0 1 0
M AR S I N N O VAT I O N S U M M I T 2 0 1 0
Changing the Way the World
Learns English

2. Market Opportunity
• 1.6 Billion English language
learners (ELL)
• Within 5 years- 2 Billion
• China- largest ELL market in
the world
• English skills earn higher
income (up to 72.5%
more)**
100
200
400
700
900 950 1,000
1,300
2,000
-
500
1,000
1,500
2,000
2,500
1970 1975 1980 1985 1990 1995 2000 2005 2010
English Language Learners Worldwide
(Millions)
Source: British Council
*Source: U.S. Census Bureau, International Data Base
**Source: ChinaHR.com
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3. Corporate Structure
Lingo Media Corporation
3
Publishing Social Learning Training

4. Funding
4
 Several Rounds of Financings
 Strategic Investors
 Most Recent $5 MM investment from Orascom Telecom
 Other Sources Of Funding
 Less Dilutive
 Government Financing
 CIDA Inc., Heritage Canada, OMDC and others
 Issuance of Shares To Fund Acquisitions
 Speak2Me
 ELL Technologies

5. Lingo Learning – Publishing
• Partnership with People’s
Education Press (PEP), China’s
MOE Publisher
• Investment in developing
textbooks led to 348 original
titles
• 60% market share*
• 11.7 Million students used PEP
Primary English in 2009
• Co-Published 350 Million units
through PEP
Number of Units Sold
(in Millions)
5
5.0
24.8 27.7
32.5
35.3
40.0
48.9
63.8
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2001 2002 2003 2004 2005 2006 2007 2008
Number *Primary school market for ELL in China

6. Speak2Me - Social Learning
• Speak2Me acquired in October 2007
• Investment in online platform and portal for
China market
• Launched in China in December 2008
• Social network meets online learning
• Free-to-Consumer: “Fun, Fast, and Free”
• Avatar and state-of-the-art speech
• recognition technology
• 1,500,000 registered users and growing
www.Speak2Me.cn
6

7. Speak2Me’s - Conversational Advertising
How it works?
• Advertisers embed brand in
interactive campaigns with
Speak2Me Lessons
• Content developed around the
brand and integrated into lesson
• Users interacts with brand &
product messaging
• 10 X More effective than banners
It is product placement
taken to an entirely new
level!
7

8. Parlo - Training
• Parlo acquired in Sept 2009
• Investment in fee-based training
platform and LMS
• Developed off-the-shelf and
customized solutions
• Clients
• Universities & Language Centers
• Corporations
• Government
• Focused on spoken English skills
• Available 24/7 and scalable
8

9. Parlo –Launch Client For Training
Client
• China Southern Airlines
• 7,000 Flight Attendants
• China Southern needs to compete on an
international level
• Required a customized solution
Solution
 Fully accessible platform for employees
 Incorporated brand look and feel into
lessons
 Employees learn about and engage with
the airline’s brand
 Cost effective
9

10. Parlo Assessment – Launch Client
Client
• Shanghai World Expo 2010
• Expected 70 million visitors
• Challenge to recruit and process volunteer
applications (1.5 million applicants applied)
• Scalable platform solution to assess
80,000 volunteers in English
Solution
 Standardized test platform for pre-
screening
 Incorporated brand look and feel into
lessons
 Volunteers learn about and engage with
the brand
 Developed for high volume assessment
10

11. ELL Technologies (Q Group) - Training
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 Acquired in May 2010
 Online language training company
 Distributors in 11 markets
 Includes reading comprehension,
writing skills and SCORM
compliant
 Over 1,700 hours of learning
through online, CD-ROMs and
blended learning

12. Growth Strategy
 Acquire undervalued assets in line with
operational strategy
 Capitalize on R & D from acquisitions
 Aggressive sales and marketing in China & India
 Expansion of distribution partners in other
markets
 Launching new English Online Assessment
Service and Mobile Applications
12

13. Contact Us
Corporate Headquarters
Lingo Media Corporation (TSX-V: LM)
Michael Kraft, President & CEO info@lingomedia.com
151 Bloor Street West, Suite 703 Tel (416) 927-7000 ext. 23
Toronto, Ontario Fax (416) 927-1222
Canada M5S 1S4 www.lingomedia.com
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14. New Product Development - EAP
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Corporations Job Seeking Websites
Job Applicants
Parlo Internet Based Test
English Qualified Applicants
Individual Applicants
Parlo Internet Based Test
English Qualified Applicants
Distributor
Retailer
End User End User
Become qualified by taking the Parlo Test
Parlo Assessment