Authored by Brian Pilsl, this business plan may not look as pretty as some do today, but we were able to raise over $800,000 in stage 1 private equity investment capital. Magazines sell advertising based upon the size and demographic characteristics of their audience. Advertisers place ads hoping to reach consumers who are reading adjacent content pages. A yardage book is an important guide utilized by golfers to improve their game while actually playing golf. A detailed map of each of the 18 holes on the golf course became the content of our “magazine”. By mounting our books in each golf cart, we guaranteed advertisers exclusive and undisturbed access to sizable audience of very affluent consumers, tourists and key executives.

1. Golfers Direct
Business Plan

2. CONTENTS
Section 1: A Brief Overview
Section 2: The Business Plan
Background
The Advertising Industry
Market Segment: Advertising and Golf
The Golfers Direct Platform
U.S. Market Potential
Section 3: The Marketing Plan
Creating Value
Acquiring the Real Estate
Selling the Golfers Direct Platform
Pricing the Product
Section 4: Risk Analysis
Competitive Environment
Competitive Advantages
Multiple Strategy Options
Analogous Comparisons
Section 5: Financial Plan
Investment Highlights
Sources and Uses of Cash
Five-Year Growth Assumptions
Pro Forma Statements & Notes to Financial Information
Section 6: Operating Timeline
Section 7: Exit Strategy
Section 8: Appendix
Management Team & Lease Summary
Potential Advertisers & Player Survey
Revenue Growth Matrix
Golfers Direct Member Course List
Golfers Direct Audience Profile & Demographics
Golfers Direct Industry Factoids

3. A BRIEF OVERVIEW
The Concept: Advertisers spend more than 230 billion dollars annually to extract money
from consumers. Not surprisingly, the most attractive targets are affluent, high spending
consumers. Golfers are a growing part of this target market as the average golfer has an annual
income exceeding $72,000 with 40% earning over $75,000 and 16.5% earning over $100,000.
Golfers Direct has acquired exclusive advertising rights to over 7,600 golfers-only
advertising locations. The Company’s Southwest Region marketing platform alone, a
combination of print and billboard advertising, currently reaches more than 3,000,000 golfing
consumers – exceeding the combined readership of the top national golf magazines.
The opportunity: By providing a new advertising platform, Golfers Direct will provide
advertisers exclusive time in front of a captive audience of golfing consumers while actually on
the golf course. The Golfers Direct platform will initially grow to include over 152,000 displays
seen by the target audience during approximately 100,000,000 annual rounds of golf. At less
than 30% of full market penetration, Golfers Direct has the potential to become the largest media
provider directed at the golfing consumer. A fully developed national program will include
approximately 6,000 qualified golf courses with 456,000 displays showcased during 300,000,000
annual rounds of golf.
The Competitive advantage: With its exclusive, no competition locations, Golfers Direct is
uniquely positioned to capture substantial revenue market share from major advertisers in search
of affluent consumers. This objective can be accomplished quickly and certainly by providing
advertisers with “must” read locations to highly qualified readers at a fraction of the cost charged
by mass media providers, where “must” read or guaranteed exposure is at best a hope and
certainly not an expectation.
Multiple options: Golfers Direct is in a position to either market its advertising platform on
a wholesale basis to other media location providers (become a site provider), compete directly
for advertisers, outsource marketing or establish strategic alliances to execute combinations of
strategies.
The Product: Golfers Direct holds more than 7,600 golf cart leases on more than one
hundred golf courses throughout Arizona, California, Hawaii and Nevada. The Company will
install and maintain custom yardage “books” in the golf carts of our participating golf courses (as
depicted on the following page). These are twenty-page, double-sided layouts with one side
displaying a map of each golf hole, and the other a national advertiser, full-page ad. The benefits:
For the golfer, these guides offer valuable layouts of each hole, which increases the pace and
quality of his golfing experience.
For golf course management, the Golfers Direct platform provides guaranteed monthly
revenue (lease payments) and a no-cost way to market their amenities to players while on the
course (each course is given 2 complimentary ads in between holes 9 & 10).

4. For national advertisers, Golfers Direct offers highly effective “golfers eyes only” ad
impressions at cost efficient rates up to 90% below golf oriented print media.
Investment highlights: With a base capitalization of $800,000, the company will
generate a net operating profit of $1,898,438 by the end of the second year from advertising sales
revenue of over $5,000,000. Expansion will increase net revenues to over $39,000,000 by the
fifth year of operations. At the end of the 5th year, operating profit will be over 48% with
considerably greater returns on disposition. Increasing golf course memberships and advertising
rates will provide revenues in excess of $100 million.
Golfers Direct is a low risk, high yield opportunity in a high growth, long established
industry.
The Golfers Direct Marketing Platform:
Millions of golfers reading an advertisers message
while they are golfing

5. THE BUSINESS PLAN
Background
Advertisers: American business spends more than 230 billion dollars annually advertising
their products and services. Almost uniformly, advertisers compete for the attention of affluent,
high spending consumers. And advertisers love golfers (whether or not they love golf) because
golfers practically define the affluent consumer: On average, a golfer is 40 years old, well
educated, often a key decision maker, enjoys a high income and spends freely- in the advertising
world, a “prize catch.”
In their push to reach the golfing public in 2001, advertisers spent over $345 million with
the top 5 national golf magazines alone ($737 million total) and spent an additional $400 million
to endorse professional golfers. Advertising spending by companies outside golf, to reach
golfers, has increased by more than 200% since 1996. The Golfers Direct advertising platform is
uniquely positioned to capture a Golfers attention. In fact, a golfer can’t avoid reading the
advertisers message. This exclusive medium also provides advertisers guaranteed time in front of
their target audience for a fraction of what a national golf magazine costs (where they can only
hope to be seen). With its exclusive “billboards” which offer higher quality impressions at 10 or
15% the cost of other media, Golfers Direct will capture a substantial portion of advertising
budgets already dedicated to reach golfers (in other words, affluent consumers and key business
decision makers).
Reach: Golfers Direct has leased 7,600 exclusive advertising locations offering access to
a golfing audience of over 3,000,000 individual golfers playing over 5,000,000 annual rounds of
golf. With current invitations to include an additional 11,400 locations, the Company can quickly
increase its audience reach to 7,600,000 highly sought after golfing consumers. Following initial
start up, the company will be able to rapidly expand to 500 member courses to include 38,000
locations, reaching a nationwide audience in excess of 19,000,000, which will at that point easily
make Golfers Direct the largest US media provider directly reaching the golfing consumer.
Following a 5-year growth plan, our national program will include 2,000 qualified golf course
members with 152,000 displays showcased during 100 million annual rounds of golf.
The World of Golf Courses: There are approximately 12,000 full sized, 18-hole golf
courses in the US, and an additional 5,000 courses offering 9-holes. Outside the US, there are
approximately 15,000 more golf courses. Offering a lower cost way to practice, there are 2,400
freestanding driving ranges in the US.
Driven heavily by planned community developments, over the past six years the nation’s
supply of golf courses has actually grown more quickly (2.1%) than the number of golfers
(1.3%), suggesting that supply of “tee-times” may be outpacing demand. More slot times
available than golfers is good for golfers, and good for Golfers Direct, as Golf course managers
search for additional sources of income.

6. The supply of golf courses in Southwest and West is growing even faster. As of 2001,
Arizona had 352 golf courses with an additional 56 under construction or in planning (a 16%
increase), California had 1038 golf courses with an additional 168 under construction or in
planning (also 16%) and Nevada, 114 golf courses with an additional 30 under construction or in
planning (a 20% increase). Golf driving ranges have experienced growth as well.
The Golfers Direct primary market is comprised of golf courses that use golf carts, are
open to the public, and are open for play year-round. Approximately 8,000 18-hole courses and
3,800 9-hole courses meet these criteria.
The Advertising Industry
Advertising is here to stay. So long as producers of goods and services have products to
sell, advertising will be with us. Advertisers spent a total of $231.4 billion in 2001, with $11.1
billion spent on print media, and $5.1 billion allocated to outdoor advertising (billboards, bus
shelters, etc). Combining the best attributes of both print and outdoor advertising, the Golfers
Direct advertising platform is extremely well positioned to capture a share of this enormous
market.
Although total advertising expenditures were down slightly in 2001, reflecting the overall
economy, spending was up by 2.2% through the first three quarters of 2002. In fact, a recent
survey (adage.com) indicates overall spending increases of 63% are planned in 2003 by the Top
100 US Advertisers.
Despite the fact that general magazine advertising decreased by 10.3% in 2001, three of
the top five golf industry magazines experienced significant growth in advertising revenue, and
the top 100 U.S. outdoor advertisers increased expenditures by 20.8%. In 2002 Golf Magazine
increased its total ad pages sold by 3.3% fueling a revenue increase of 14%. In fact advertisers
who target golfers in financial services, real estate, automotive, beer & wine and travel
categories all increased their outdoor advertising spending in 2002, notwithstanding uncertain
economic conditions.
Pricing: The dollar cost per thousand impressions (CPM) is commonly used to measure
the cost efficiency of an advertising purchase. Impressions are the total number of times an ad is
seen. Frequency is the number of times a single consumer will theoretically view an advertisers
message during a certain time period. Impressions are calculated by multiplying the size of the
audience by the frequency. For example, a national golf magazine with a readership (rate base)
of 1,000,000 subscribers (magazines have a presumed frequency = 1.0 which means that 1
million subscribers provide 1 million total impressions) charges $92,000 per month for a single,
four-color, full-page ad (a CPM of $92.00). The high price advertisers are paying to reach
golfers is an important part of the Golfers Direct competitive advantage, which delivers a higher
quality ad impression for 10% of the cost of typical golf advertising alternatives. The Golfers
Direct advertising platform provides a powerful, direct marketing reach at an enormous discount
over competitive media.

7. Market Segment: Advertising and Golf
Golfing is big business. The golfer marketplace exceeds $63 billion dollars, with $40
billion expended in core industries (facility operations, golf course capital investments, golfer
supplies and media, tournaments, charities and associations) and $23.5 billion in enabled
industries (real estate and hospitality/tourism). By way of comparison, the golf industry is larger
than both the amusement/gambling/recreation industry ($56 billion) and the motion
pictures/sound recording industries ($58 billion).
Golfers are coveted consumers: There are a great number of golfers today. Golfers are a
growing, affluent consumer group that earns, and spends, substantial discretionary income.
Currently, 37 million golfers play an average of more than 518.1 million rounds of golf annually.
Boosted by popular folk heroes like Tiger Woods and greater access to facilities, golf is
increasingly popular across all segments of the population. According to ESPN, Golf is one of
the few sports that experienced a positive increase in its fan base during the past 5 years.
Demographics tell the story. The average golfer is 40 years of age, college educated and
earns an annual income over $72,000; but nearly 40% earn over $75,000 and 16.5% earn over
$100,000. Perhaps even more important than outstanding consumer demographics, business
owners and key executives can be reached with a high degree of certainty. Golf is the #1
participatory sport among business executives, and 98% of Fortune 500 CEO's picked golf as
their sport of choice (1999 PGA survey). A recent Starwood Hotels survey indicated that 97% of
business executives believe golfing is a good way to establish a close business relationship.
Golfers are frequent travelers. Approximately 16 million golf-related trips were taken in 2000
with over 10 million trips being golf specific. On average, golfers spend more than $26 billion
annually on golf-related travel. Golfers spend freely. Golfing consumers spend more than $6
billion annually on golf equipment, apparel and literature, making golf related equipment number
one in the sports equipment industry.
The problem: Getting a golfer’s attention. Advertisers compete for golfers attention
primarily through print (magazines), and secondarily, through radio and television commercials
on networks such as the Golf Channel and through advertising during tournament broadcasts.
Tournament and tour sponsorships (signage and naming rights) are also used. Each of these
platforms is expensive, full of inherent distractions and cluttered with direct competitors.
The Solution: Golfers Direct. The Golfers Direct advertising platform substantially
improves both effectiveness and cost-efficiency over traditional print media that reaches only a
small portion of the golfing public. The unduplicated print audience of the national golf
magazines (those who subscribe to any golf publication) is slightly more than 10% of all golfers
(Golf Tips Magazine). In contrast, Golfers Direct can reach ALL golfers, while they are actually
playing golf. The Golfers Direct platform offers advertisers access to a pre-qualified target
audience who pays an average of $900 per year in course fees before they even begin to see the
ads whereas the average annual subscription price of a golf magazine is under $20!

8. The Golfers Direct Platform
Playing a better game: navigation aids. An important part of Golfing culture is the
continuing effort to improve scores. In addition to conditioning, stance, swing & equipment, the
more a golfer knows about pin placement & exact distances the better a game can be executed,
and the better the score. The basic golf course “road maps” for better play are:
 Pin placement advisory. To mitigate damage to the greens, every golf course rotates
the pin (hole) placements on each green, and golfers like to plan their shots relative
to these locations. Most golf courses provide a sheet, typically mounted on the golf
cart, which shows golfers a diagram of the green, and corresponding pin placements.
 Color-coded flags (the bare minimum advisory) tell a golfer whether the hole is near
the front, middle or rear of the green.
 Generalized course layout map. A generalized layout of the golf course lacking
detailed information.
 GPS real time position advisor. This device is a small computer screen mounted in
the golf cart that provides a running narrative of data based on any location the golf
cart happens to be. While this system provides the most data to a golfer, it is
expensive, substantially less than 100% reliable, and has enjoyed only limited
acceptance to this point.
 Printed Yardage Book made from GPS surveyed map of exact locations and
distances. A GPS surveyed, detailed map of each of the 18 holes, showing exact
distances from tee to green at various angles, and fixed points on the fairway. This
detailed navigation map provides practically all of the information a golfer needs,
and works every time, without failure.
A Captive Audience: Most “navigation aids,” are located and used in the golf cart, and the
space used to display this information represents prime advertising “real estate.” The Golfers
Direct point of display is a detailed GPS surveyed golf course map (a score enhancing tool)
mounted directly in the golf cart. This display is referenced multiple times on each of the 18
holes, as golfers prepare for each upcoming golf shot. Opposite each hole layout page will be a
“can’t avoid reading” message in full color from our 18 advertisers.
U.S. Market Potential
As earlier discussed, the Golfers Direct core market is U.S. public golf courses that
provide golf carts and offer year-round play. There are 8,061 18-hole public golf courses that
provide golf carts, and 4,498 are open year-round. There are 3,824 total 9-hole public golf
courses providing golf carts, with 1,561 offering year-round play. Assuming the current prospect
to client conversion ratio of 48% (which is conservative), management believes that we can
expand our program to 2,000 golf courses over a 5-year period.
Approximately 50,000 golfers annually play golf and use a golf cart at each of our golf
courses. At a frequency of 3.0, 150,000 impressions at each of 2,000 courses would be
generated, totaling over 300 million annual impressions per advertisement. A very low initial

9. CPM rate of $7 will generate approximately $37.8 million in annual revenue. Please reference
the Revenue Growth Matrix in the Appendix Section. With a stabilized net operating margin of
48%, the company will realize over $18.5 million in net operating profit. As the Golfers Direct
platform “matures” in the industry (with time or a strategic partner), the chart below suggests the
potential for revenue growth based on CPM rates currently charged by similar advertising
providers:
Comparison CPM 100 Courses 250 Courses 500 Courses 2000 Courses
Our Initial Rate 6.67 $ 1,800,900 $ 4,502,250 $ 9,004,500 $ 36,018,000
Airport Billboards 15.00 $ 4,050,000 $ 10,125,000 $ 20,250,000 $ 81,000,000
Bathroom Billboards 17.00 $ 4,590,000 $ 11,475,000 $ 22,950,000 $ 91,800,000
Restaurant Menu 32.00 $ 8,640,000 $ 21,600,000 $ 43,200,000 $ 172,800,000
Stadium Signage 67.00 $ 18,090,000 $ 45,225,000 $ 90,450,000 $ 361,800,000
Golf Magazines 77.00 $ 20,790,000 $ 51,975,000 $ 103,950,000 $ 415,800,000
While the advertising industry is generally biased toward the optimistic, it is evident that
the Golfers Direct advertising platform has considerable income growth potential from CPM rate
appreciation alone. In addition, multinational products and services will strongly support an
international market for the Golfers Direct advertising platform to expand to an even larger
number of golf courses.

10. MARKETING PLAN
Creating value: The Golfers Direct advertising platform creates value where there was
none before. As one observer put it, “In this new marketing world we need to look at one another
in terms of what we can do and make together, how we can exchange value to create
value”.(Steven Heyer, Coca Cola Company 2003). Golfers direct will create value for the
golfing consumers using our yardage books, our member golf courses, our advertising clients,
and the company’s stakeholders.
Two constituencies: The Golfers Direct platform, like outdoor advertising, has two basic
components: (1) control of specific advertising display locations, and (2) advertising clients.
Acquiring the “real estate”. Our golf course member program is based on a simple
notion: something for nothing. Golf course members receive “found money” in several different
forms. We pay money for unused, non-revenue generating space in a golf cart. The courses
receive income primarily from a base lease fee, however the program also includes a
complimentary, two-page advertisement on the pages between holes 9 & 10 of each book (to
market pro shop merchandise, food & beverage sales, golf lessons, resort amenities, business and
tournament services). Also included is a free GPS map layout of a member course, which can be
a savings of as much as $12,000. Since Golfers Direct will also manage all production and
maintenance, course members are truly getting something for nothing.
The Company’s initial golf course marketing phase was targeted to sign up 100 courses.
212 courses were contacted, and 102 have become members (a closing ratio of 48%). As a result
of this early “proof of concept” effort, the Company controls over 7,600 exclusive advertising
locations at 102 golf courses throughout the Southwest, including locations at 6 U.S. Navy golf
courses. The Navy’s legal department (JAG) has approved the Golfers Direct program, and we
have been invited to include an additional 120 military courses in the program upon
implementation of the system for the initial 6 courses. A number of golf course management
companies that manage multiple courses have expressed serious interest, also pending
implementation of our initial program.
In a full marketing effort, management estimates that participating golf courses could be
brought in to the program at the rate of 500 per year. With 102 members now on board, the cost
of acquiring new leases will decrease, as a substantial number of agreements can be completed
via mail, Internet and telephone.
Our expansion course acquisitions will focus initially on four geographic regions:
Southwest, Mid-South, Southeast and Midwest. These areas represent a high concentration of
golf courses, and generally year around play opportunity. For our 5-year plan, 125 courses per
region will initially be selected with expansion to a total of 500 courses in each of the SW, MS &
SE Regions and a total of 375 courses in the MW Region. A fifth “region” will consist of 125
golf courses owned and operated by the U.S. Military to complete a total of 2000 courses.

11. The 102 current course members provide golf carts used on average by 50,000 golfers
annually, exposing our ads to over 3,000,000 individual golfers who will play more than 5
million rounds of golf. Initial course member growth by the end of year 2 (625 courses; 125 per
region) will increase this reach to over 22 million individual golfers playing over 31 million
annual golf-cart rounds. Planned expansion will develop a portfolio of 2,000 qualified golf
courses with display rights to 152,000 locations, making Golfers Direct by far the largest golf
marketer in the world.

12. Selling the Golfers Direct Platform
Comparative advantages. Initial marketing efforts will be focused on advertisers that
now spend more than $737 million dollars in total golf industry magazine advertising. The
comparative advantages Golfers direct offers over magazine advertising are striking:
Advantages The Golfers Direct platform provides advertisers:
 Break through the clutter: Our ads are adjacent to the information golfers will
use, ensuring maximum message exposure.
 Extended message exposure: Golfers on the golf course cannot turn the channel or
run to the fridge when our client’s message is displayed. In fact, each of our ads
receives 3 quality impressions over a 15-minute period while the golfer plays each
hole.
 Receptive marketing environment: Conversation among golfers, while in the golf
cart, can generate valuable word-of-mouth advertising (“I really like my Lexus”)
 Point of purchase influence: Many products advertised can be on sale at the golf
course- “I think I’ll try a Corona at the 19th green” or “You would have made that
birdie put using the new Odyssey White Hot 2 Ball Putter.”
 A Pre-qualified target audience. Each golfer has paid an average of $40 just to
play the course (once). Result: golfers actually pay to read an advertisers
message.
 Direct Contact: Only golfers, in the golf cart, actually playing golf, get to read the
advertisers message.
 Exclusivity: With only 18 advertising pages per region, Golfers Direct can offer
category exclusives to advertisers.
 Cost-Efficiency: Golfers Direct offers a larger target audience and higher quality
exposure all at approximately 10% of the cost of the national golf magazines.
Disadvantages a golf magazine advertiser faces:
 The message is buried inside volumes of pages (120 on average).
 A Multiplicity of ads competing for attention in each edition.
 Organic distractions that pull readers away from an ad.
 The possibility (probability) that golfers will not even see the ad
 Many direct competitors competing for attention in the same issue.
 Readership uncertainty: who is really reading ad (in the dentist’s office)
 High cost: a four-color, full-page ad will cost over $1,000,000 to run in only 12
monthly issues.
As outlined earlier, one of the distinct advantages of the Golfers Direct platform is direct
messaging. A golfer may be ambivalent about a beverage choice, but the Budweiser ad staring
him in the face as the beverage cart approaches can resolve the uncertainty. This is also an
excellent method to drive direct response since all golfers will have a pencil and paper (score

13. card) and many will have a mobile phone. As well, ads can generate conversations between
golfers in each cart (how do you like your Rolex?), which can build enthusiasm and develop
referral sales.
Pricing the product. As discussed earlier, advertising prices are typically based on a rate
per 1,000 impressions (CPM). Frequency is the number of times a specific ad is seen, by one
person, over the course of a specified time period (each round of golf). Over 5 million annual
golf rounds are played on our existing 102 member Golf Courses. The average golf score is 100,
and about 46% of these are putts. For the remaining 54 strokes, golfers will reference our
yardage books to determine yardage in order to select the appropriate golf club.
Since our yardage books are referenced 54 times over 18 holes or 3 times per hole, each
individual ad has a frequency of 3.0 during every round of golf. Therefore, 5 million rounds of
golf generate 15 million annual impressions (1.25 million per month) per ad at a frequency of
3.0. Golf Digest Magazine currently charges $126,000 per month for a full-page ad that
generates 1.5 million monthly impressions. According to Adage.com, in 2001 the Top 100
Domestic Advertisers spent an average of over $75 million each on magazine and outdoor
advertising alone, with full advertising budgets averaging over $800 million. Golf magazines
average 105 pages of ads per issue to accommodate the efforts of advertisers to reach golfing
consumers. To achieve its projected revenue within 5 years, Golfers Direct will need to capture
less than 1% of the Top 100 advertising budgets.
However, as a new company marketing a new platform, Golfers Direct will preliminarily
price its advertising venues at a very aggressive rate of approximately $6.67 CPM ($100k per ad
per year). By way of comparison, below is a sampling of various media rates targeting affluent
consumers:
 Golf Industry Magazines – $77.00 CPM (avg for Golf Digest, Golf, Golf Tips)
 Tucson Lifestyle Magazine (targets affluent readers) - $23.50 CPM
 4’ x 28’ Billboards at ASU Sun Devil Stadium (Viacom) - $67.00 CPM
 20” x 28” Billboards in the bathrooms of America West Arena $16.67 CPM
 Pinpoint Golf Marketing Billboards at driving ranges - $9.00 CPM
 Clear Channel Airport Displays $14.80
 Cheesecake Factory Menu - $32.00 (ads on the pages opposite the menu pages)
Comparison: For the same reach (arguably better) Golfers Direct annual pricing will be
$100,000, for what Golf Industry magazines price at over $1 million. Golfers Direct can offer
advertisers substantially better quality impressions for less than 10% of the cost. Once the
company has attracted a stabilized base of advertisers and begins expansion, rates will be
increased to levels better reflecting the true quality of the Golfers Direct advertising platform.

14. RISK ANALYSIS
The Competitive Environment
Traditional advertising media: Primary competition comes from traditional advertising
outlets such as television, radio and print. The company believes the most vulnerable of these
media are national golf and travel industry magazines, such as Golf Magazine, Golf Digest
Magazine, Golf Tips Magazine, Southwest Airline’s Spirit Magazine and more. These
publications attract more than $737 million annually from golfer-oriented advertisers. While in
the past Golfer publications attracted primarily Golf related product advertisers, the advertiser
mix in recent years is expanding to include more general products and services lines such as
financial services, automobiles, jewelry and travel. This expanding base is good news for the
highly cost effective Golfers Direct advertising platform.
GPS electronic display systems: Approximately 500 high-end courses have installed a
GPS computer mapping service. This system provides a small screen monitor in each golf cart
and an interactive graphic hole-layout is displayed to “navigate” each hole. GPS systems are
expensive- as much as $200,000- and reviews regarding quality and service have been mixed.
To offset high costs, GPS manufacturers are offering advertising-capable systems that can
provide an (theoretically) opportunity to recapture the investment through the sale of
advertisements displayed on the GPS computer screens inside each golf cart. Our experience
indicates many high-end courses that invest money in this amenity are not disposed to local
advertiser messages “flashing” across their screens. This fact coupled with the high initial cost
has lead to a relatively slow acceptance of GPS systems. The largest provider of GPS sold only 9
new systems in 2002, despite a very extensive effort.
Neither GPS manufacturers nor individual golf courses can provide regional or national
reach to attract high-end advertisers. Moreover, golf course managers generally have neither the
experience nor desire to sell advertising. In fact, these GPS realities offer an opportunity for
Golfers Direct to acquire marketing rights on GPS courses by integrating existing national
advertisers with the GPS platform. One golf management company has already requested that
Golfers Direct market four GPS courses in Tucson, Arizona.
Custom yardage publishers: Custom yardage book publishers contract with individual
golf courses to produce printed GPS course layout books to be sold to golfers prior to play. This
service is expensive ($12,000) and the cost is rarely recovered by selling the books. This
program poses no threat to the Golfers Direct platform, since the golf course member receives
the same quality layout at no cost, and actually gets paid. While it is possible these companies
may change their business model, yardage book producers are typically niche publishing
companies who earn the majority of their income from printing the actual books, and not selling
advertising.

15. Competitive Advantages
The Cost Advantage: The Golfers Direct Platform provides the most cost effective way
to reach the golfing consumer: 10 times less expensive than the most popular media.
Comparison Category Golfers Direct SW Region Golf Magazine Golf Digest Magazine Golf Tips Magazine
Monthly Impressions 1,250,000 1,405,020 1,563,476 263,219
Monthly Ad Rate $8,334 $111,180 $126,930 $19,065
CPM $6.67 $79 $81 $72
Price/Issue or Price of Play $30 - $175 $1.33 $1.24 $1.71
Total Pages 40 197 234 96
Total Ad Pages 18 101 105 37
Golf Industry Ads 56 40 36
Non Golf Industry Ads 45 65 1
The Message quality: Golfers Direct provides national advertisers an unprecedented
opportunity to market their products and services directly to millions of golfing consumers while
they are actually playing golf. For a fraction of the typical advertising investment, advertisers
will be able to ensure their full-page ad is seen by their target audience for an extended period of
time, free from the distractions and clutter associated with national golf magazines, billboards,
radio and television. Our yardage books provide the information golfing consumers need and use
while they are enjoying a five-hour round of golf. Each advertisers message is in plain,
unavoidable view for an average minimum of 15 minutes.
The depth and scope of reach: The Golfers Direct Platform will currently reach over
3,000,000 golfers per year, playing 5,000,000 annual rounds of golf, which generates 15,000,000
total annual impressions in the SW Region alone. These 1,250,000 regional monthly
impressions are highly competitive with national golf industry magazines. Once we begin
expansion, Golfers Direct will quickly grow to become the leading media company targeting
golfing consumers.
Multiple Strategy Options
First to Market. The Golfers Direct advertising platform is unique in the nation. There
are no other yardage book programs that provide golf courses a guaranteed monthly lease
payment, and there are no on-course programs that offer advertising opportunities on a regional
and national basis. The initial, “proof of concept” effort on the “real estate” side has been
successful. Offering member golf courses a guaranteed monthly lease payment, free yardage
books and free advertising space, management was able to contract a major portion of the SW
Region in a short period of time, converting 48% of its prospects to customers. The company
has already achieved enough critical mass (market reach) to attract initial major advertisers and
build out the program at a measured pace and the program can now be expanded quickly to other
regions.

16. There is the obvious possibility that other organizations will enter this market. The best
defense in this case will be a good offense: as first mover, Golfers Direct will be in a position to
dominate this market quickly.
Sell services to the Competition: Two major golf industry magazines currently claim to
be the major golf media provider. Golf Digest Magazine is owned by the Golf Digest Companies
and has spawned several spin-off magazines such as Golf for Women, Golf World and Golf
World Business, all in an attempt to reach more of the golfing population. Golf Digest
Companies also sells advertising in The Annual Golf Digest Buyers Guide (golf equipment) and
Golf Digest’s Annual Top 100 Places to Play. Golf Magazine is owned by AOL Time Warner
and also publishes several golf industry magazines including the Official Publications for the
PGA, LPGA and Champions Tours. Each magazine also sells advertising on their websites to
try to reach more golfers.
Both magazines claim in one way or another that their media properties reach more
golfers than any other golf media company. Golfers Direct obviously could offer each of these
media companies a very large audience- even larger than their existing reach- comprised only of
golfers. In addition, the major out-of-home media conglomerates, Clear Channel Outdoor,
Viacom Outdoor, Lamar Outdoor Advertising, and regional out-of-home providers such as
Freedom Communications can be “wholesale” customers, whether or not they are competitors.
In addition, small niche marketers like PinPoint Golf Marketing, which focus primarily
on driving range advertising, can be either prospective customers or strategic partners.
Join forces with the competition: Golfers Direct is uniquely positioned to select very
different operating modalities. Given an appropriate strategic alliance (such as a large marketing
organization), Golfers Direct would be able to concentrate on golf course member acquisitions,
while generating revenue from the “real estate” through revenue sharing, contract lease, contract
marketing or other arrangement. Alternatively, management is well qualified to assume the full
scope of marketing and operating responsibilities, while scaling growth consistent with more
limited resources.
A barrier to entry: Controlling The Real Estate. Site-specific advertising, like
billboards, substantially reduces competition in general, and eliminates competition on courses
that are members of the Golfers Direct program. Golfers Direct has the opportunity to assemble
approximately 2000 golf courses within a period of five years.

17. Analogous Comparisons
While no two companies or circumstances are exactly the same, the following examples
illustrate the potential of the Golfers Direct Concept:
Score Media: (www.scoremedia.net) sells billboard-advertising displays in the
bathrooms of 20 NBA/NHL arenas across the country. This firm was founded in 1993 and offers
advertisers a way to reach a captive, sports enthusiast consumer without distraction. Score Media
started operations by leasing the wall space in the TD Waterhouse Center, home to the NBA’s
Orlando Magic. Over an eight-year period, the company expanded to secure advertising rights in
20 arenas, generating approximately $5 – $8 million in annual revenue with approximately 45%
net margin. Although figures were not released, it is estimated the firm sold in the range of 10 x
earnings. The message: if bathroom advertising venues can attract national advertisers, a
beautiful, outdoor, golf course venue should create a stampede.
Outdoor Systems: Founded in 1980 as an outdoor billboard company, Outdoor Systems
grew through a string of acquisitions to over 237,000 out-of-home media displays, to become the
largest outdoor advertising company in the country. In addition to traditional billboards,
Outdoor Systems owns bus shelter displays, displays inside major shopping malls and displays
on the sides of mass transit vehicles. In 1998, with revenues of $705 million, the company was
acquired by Viacom for $8.7 billion.
PinPoint Golf Marketing: Founded in 1995, Pinpoint Golf Marketing has emerged as a
national leader in golf venue marketing. PinPoint provides billboard displays at over 600 driving
ranges and golf practice facilities across the nation. In addition to practice facility advertising
and marketing programs, Pinpoint Golf offers Golf Cart Wrap Advertising at premiere golf
courses. With a CPM of $9.00, PinPoint can name many regional and national advertisers as
clients such as America West Airlines, Bank of America, Buick, Citibank Visa, Honda, New
York Life, Sony, Sprint and more.
Clear Channel Airports: Clear Channel Airports is a division of Clear Channel Outdoor,
one of the largest providers of outdoor advertising in the US. Offering hundreds of billboard
locations inside each of 17 of the busiest airports, including the top 4 transfer hubs, in the US,
Clear Channel Airports provides advertisers a medium to target affluent consumers and business
executives and can list many regional and national advertisers as clients such as AT&T, Siemens,
Apple, Balance Bar, Merrill Lynch, Cadillac, American Express, and many, many more. Clear
Channel Airports currently charges a CPM of approximately $42.00 to have full display
coverage of available airports.
Buzz Marketing: The innovative marketing and media company reaches more people
every week than Time magazine with ads on the back of paper fortunes in Fortune Cookies.
Buzz Marketing owns the exclusive advertising rights to more than 7 million cookies a week and
has relationships with fortune cookie manufacturers covering 30 states. Buzz currently charges a
CPM of $8 - $13 and controls 25% of the Chinese restaurants across the country.

18. FINANCIAL PLAN
Investment highlights: With a base capitalization of $800,000, the company will
generate a net operating profit of $1,898,438 by the end of the second year. Expansion over 5
years will increase the number of member golf courses to 2000, increasing net revenues to $ 5.3
million by the second year of operations (500 courses), and $39.4 million by the fifth year of
operations. An aggressive expansion plan could increase memberships to 3000 – 5000 courses,
with potential income well in excess of $100 million. By the end of the 5th year, operating profit
will be 48%. Total return on investment will be several hundred percent.
Capital Requirement: The Company will require $800,000 in additional capital to
complete development of its advertising platform and firm up advertising accounts.
Sources & Uses of Cash (specific use detailed in financial plan)
Year 1 Year 2 Year 3 Year 4 Year 5
Sources of Cash
Beginning Cash Balance $ 800,000 $ 490,698 $ 1,003,278 $ 4,592,277 $ 9,691,483
Ad Sales Revenue $ 600,000 $ 5,309,504 $ 14,105,608 $25,702,754 $39,483,960
Uses of Cash
Sales & Marketing Expenses $ 200,000 $ 935,306 $ 2,216,242 $ 3,953,013 $ 6,027,394
Golf Course Leases $ 250,000 $ 1,750,000 $ 4,687,500 $ 8,750,000 $ 12,500,000
G & A Expenses $ 257,984 $ 725,760 $ 1,245,292 $ 1,521,292 $ 1,760,692
Fixed Asset Purchases $ 239,400 $ 957,600 $ 1,197,000 $ 1,197,000 $ 1,197,000
Surplus / Reserves $ 490,698 $ 1,003,278 $ 4,592,277 $ 9,691,483 $ 21,180,617
Five-year growth assumptions: Golfers Direct owns rights to over 7,600 displays on 102
golf courses across Arizona, California, Hawaii and Nevada. The company plans to install its
displays in the Southwest Region in two groups. The first will consist of 100 courses to be
completed by December 2003. The second group of 25 courses will be installed by September
2004 as part of an expansion plan to have our program in place at 500 courses throughout the
Southern portion of the United States the end of Year 2. Over a 5-year period Golfers Direct will
look to contract a total of 2,000 courses nationwide.
Using a conservative annual CPM rate increase of 10%, advertising sales revenue is
detailed below:
Total Number of Courses Impressions Total Annual Total
Year CPM
SW MS SE MIL MW Per Ad Ads Price per Ad Revenue
1 100 0 0 0 0 $ 6.67 15,000,000 18 $100,050 $1,800,900
2 125 125 125 125 0 $ 7.34 75,000,000 18 $550,275 $9,904,950
3 250 250 250 125 125 $ 8.07 150,000,000 18 $1,210,605 $21,790,890
4 375 375 375 125 250 $ 8.88 225,000,000 18 $1,997,498 $35,954,969
5 500 500 500 125 375 $ 9.77 300,000,000 18 $2,929,664 $52,733,954
Note: The table above is based upon a full 18 advertisers during annual advertising terms, not operational years.

19. [INSERT FINANCIAL PLAN WORKSHEETS HERE]
Notes to financial information
1. Revenue assumptions. The company will begin ad placements in January 2004 for the
SW Region, pending completion of the display build out. Clients will be billed in two, equal
installments with the first due at time of ad placement and the second due at the beginning of the
sixth month of the annual agreement. We will begin ad sales at an initial CPM of $6.67. Based
upon an advertising sales force of 3, we will sell 12 of our 18 full-page ads to generate $600,000
sales revenue for Year 1. We will sell the remaining 6 ad pages to be installed in Month 15. As
the number of courses is expanded, an average of 16 of the 18 available ad pages will be sold per
region.
In 2004, Golfers Direct will begin expansion to 3 additional geographic regions (MS, SE,
MW) and a 5th “region” to include 125 U.S. Military golf courses. At the end of Year 5, we will
have a portfolio of 500 courses in each of the SW, MS & SE Regions as well as 125 courses in
the MIL Region and 375 courses in the MW Region. Please reference the Business Plan
Timeline to view our expansion schedule.
Throughout expansion, Golfers Direct will also increase the minimum CPM at an annual
rate of 10% to adjust rates to be more in line with market value. Our minimum CPM rates will
be as follows: Ad Term Year 1 = $6.67; Year 2 = $7.34; Year 3 = $8.07; Year 4 = $8.88 and
Year 5 = $9.77.
As the number of courses increase, the number of annual impressions increases to
produce annual revenue as follows: Operations Year 1 = $600,000; Year 2 = $5,309,504; Year 3
= $14,105,608; Year 4 = $25,702,754 and Year 5 = $39,483,960.
2. Sales & Marketing Expense Assumptions. We will spend $1,500 per month in travel
to acquire additional Member Golf Courses and after Month 9, an additional $1,000 per month in
order to maintain our client base. We will also spend $1,000 per month to acquire additional
advertising clients and $1000 per month from Months 9-12 and $2,000 per month thereafter in
order to maintain our current advertisers and ensure renewals.
Management will need to update our current website at a cost of $5,000 and also create
marketing materials and brochures at an initial cost of $15,000 in Month 1. Golfers Direct will
also incur printing fees of $10,000 every six months to reprint marketing materials and $14.40
per golf course client every six months to reprint individual yardage book advertising pages.
We have also budgeted a 15% commission for an independent sales staff along with a
bonus payment of $500 per original SW Region golf course client to extend our lease
agreements.
3. Golf Course Lease Expense Assumptions. Monthly lease payments are $625.00 per
course. We will delay lease payments until ad pages are placed in the books. Please reference
the Business Plan Timeline for schedule detail.
4. G & A Expense Assumptions. Each of two Managing Members will earn a monthly
fee of $2,000 from Month 1-8, then $5,000 per month ongoing from Month 9. Regional

20. Managers will be responsible for the acquisition of new member courses, maintenance of
member course relationships, supervision of the Regional Maintenance Assistant, and
maintenance of all equipment for their region. Each Regional Manager will earn $5,000 per
month (including expenses) and each Regional Maintenance Assistant will earn $1,500 per
month. MS, SE and MIL Regional Managers and Assistants will begin in Month 10 and the MW
Regional Manager and Assistant will begin in Month 22. Golfers Direct will hire an Operations
Manager to oversee all Regional Managers, course mapping and the production and installation
of new equipment and will earn $5,417 per month (including expenses) ongoing from Month 10.
The company will hire a Director of Advertising to be responsible for the coordination and
creation of all advertising page printing (course ads & client advertisements) at a cost of $5417
per month (including expenses) beginning in Month 10. An administrative assistant will be hired
at a cost of $3,792 per month (including expenses) ongoing from Month 24.
From Month 1 – 23, the Company will occupy an executive suite office and pay a
combined rent and utilities of $1,000 per month including the services of a receptionist and
administrative assistant. Local management and staff will move into a headquarters office in
Month 24 at a budgeted cost of $3,000 ($750 per person x 4 people) per month ongoing and will
incur phone, fax & Internet charges of $100 per month from Month 1-23 and $1,840 per month
(to include Regional Manager home offices) ongoing from Month 24 along with miscellaneous
business expenses (supplies) at a cost of $100 per month from Month 1-23 and $500 per month
ongoing from Month 24.
The company will need to maintain liability insurance and use the services of a
professional attorney and accountant from time to time estimated as $1,500 per month.
5. Fixed Asset Purchases. In order to produce the yardage book information, we must
first acquire aerial photography of each golf course to produce detailed yardage maps and
graphics as a playing guide for each course. Mapping is budgeted at $1,250 per golf course. We
will produce 100 Yardage/Advertising Books per Member Golf Course at a rate of $6.24 each
and will also need to produce 100 attachment arms, to display our books in each golf cart, per
course at a rate of $5.20 each. Please reference the Business Plan Timeline for schedule detail.
Note: all fixed assets are depreciated over a 5-year period.

21. OPERATING TIME LINE
Chicken or egg. Management has already contracted with 102 golf course members, and
this experience suggests expansion of course members will be rapid. The other side of the
marketing equation, advertiser revenue, requires different considerations. A number of national
advertisers have expressed serious interest in the Golfers Direct platform, and proposals are
under consideration. Despite this interest, major advertisers have been resistant to commit
contracts prior to completing the installation of our platform. While some annual contracts can
be achieved, to secure the full compliment of advertisers, it is probable golf course mapping and
yardage book installation must be underway.
Additional capital investment will enable management to order the remaining GPS
surveys, installation hardware and layout books. Concurrently, with assurance that the platform
will be “built” advertising will be contracted for delivery in January 2004.

23. EXIT STRATEGY
The company will generate substantial positive cash flow in early operations, and the
income potential exceeds $100 million. The Advertising and Media industry is robust and
acquisitive, with 24 major magazine properties sold in 2002. The out-of-home advertising
industry is also experiencing consolidation. Clear Channel, Viacom and Lamar each provide
advertising displays located on traditional billboards, bus shelter displays, inside shopping malls,
on benches, on the side of mass transit vehicles and various other displays such as wall murals.
Each of these companies is a subsidiary of a major media conglomerate that offers cross-
platform advertising opportunities (radio, TV, newspaper, etc) to its clients, and all are actively
searching for new ways to target specific consumer groups with out-of-home displays. Lamar
Outdoor, Clear Channel Outdoor and Viacom Outdoor have continued their growth strategies by
acquiring available outdoor billboard locations.
Major media conglomerates are actively purchasing smaller regional and area outdoor
display providers in an effort to offer a variety of cross-platform advertising opportunities to
their clients, which is precisely what the addition of the unique, high-end platform Golfers Direct
offers. Management estimates that “critical mass” as an attractive acquisition will be achieved
with as few as approximately 500 regionally distributed golf courses under contract. A 5-year
program to include 2,000 courses, 152,000 advertising sites and annual revenue over $39 million
will make Golfers Direct even more attractive, and certainly more valuable.
While corporate valuation based on income multiples can only be approximated, research
indicates Billboard advertising companies typically sell at multiples in the neighborhood of 6-8
times net earnings or 2.5 times revenues, depending on the quality of display locations and
income stability. Publicly held companies that sell advertising are currently trading at an average
of 20-25 times earnings (average P/E ratio of 23.02).

25. POTENTIAL ADVERTISERS & PLAYERS SURVEY
Potential Advertisers
Golfers Direct will target certain industries that have saturated golf magazines with full-page
print ads. Generally these are:
Golf Equipment Shoes Apparel
Beer Liquor Soda
Resorts / Hotels Pharmaceutical Casinos
Airlines Domestic Autos Import Autos
Wireless Phone Service Internet Service Providers Banking
Internet Commerce Financial Advisors Mortgage
Online Casinos Insurance Online Travel
Restaurants Consumer Electronics Golf Schools
Players Survey
Golfers Direct visited courses throughout the SW Region and polled golfers at our Member Golf Courses.
Below are some of the questions we asked and the results:
1. How many times do you play this course per year?
1 – 5: 58% 6 – 10: 28% 11+: 14%
2. Do you usually purchase a yardage book?
Yes: 21% No: 79%
3. Would you use a yardage book if it were displayed in your golf cart?
Yes: 92% No: 8%
4. Suppose, in order to provide this service to you at no cost, the books were supplemented
by regional and national sponsors. How would you feel?
Positive / Neutral: 91% Negative: 9%

27. GOLFERS DIRECT MEMBER COURSE LIST
Member Course City State
Alhambra Golf Course Alhambra CA
Admiral Baker Navy Golf Course San Diego CA
Aguila GC Phoenix AZ
Apache Creek GC Apache Junction AZ
Apache Wells GC Mesa AZ
Augusta Ranch Mesa AZ
Azusa Greens CC Azusa CA
Bartley Cavanaugh GC Sacramento CA
Bing Maloney GC Sacramento CA
Black Mountain Golf Club Henderson NV
Bridges Golf Club San Ramon CA
Calimesa Country Club Clalimesa CA
Camarillo Springs Camarillo CA
Casablanca Resort & Casino Mesquite NV
Cave Creek GC Phoenix AZ
Coldwater GC Avondale AZ
Cottonwood Rancho San Diego El Cajon CA
Country Meadows GC Peoria AZ
Cresta Verde GC Corona CA
Cypress Golf Course Los Alamitos CA
De Bell Golf Course Burbank CA
Desert Canyon GC Fountain Hills AZ
Desert Sands Golf Course Mesa AZ
Desert Willow Golf Course Henderson NV
Diamond Valley GC Hemet CA
Dove Valley Ranch GC Cave Creek AZ
Dry Creek Ranch Galt CA
Eagle Crest Golf Course Las Vegas NV
El Prado Chino CA
El Rancho Verde GC Rialto CA
El Rio Golf Course Tucson AZ
El Toro Golf Course Irvine CA
Encanto GC Phoenix AZ
Five Hundred Club Glendale AZ
Fred Enke Golf Course Tucson AZ
General Old GC Riverside CA
Grand Valley GC Eloy AZ
Greenfield Lakes Mesa AZ
Haggin Oaks GC Sacramento CA
Highland Falls at Sun City Las Vegas NV
Hillcrest GC Sun City West AZ
Indian Hills Golf Club Riverside CA
Jurupa Hills CC Riverside CA
Kona Country Club Kailua-Kona HI
Ko'olau Golf Club Kaneohe HI
Las Colinas GC Queen Creek AZ
Las Positas GC Livermore CA
Links at Riverlakes GC Bakersfield CA

28. Member Course City State
Lone Tree GC Antioch CA
Los Angeles Royal Vista Walnut CA
Los Prados Golf Course Las Vegas NV
Manteca Park GC Manteca CA
Marshall Canyon GC LaVerne CA
Maryvale GC Phoenix AZ
McCormick Ranch GC Scottsdale AZ
Menifee Lakes CC Menifee CA
Mile Square Golf Club Fountain Valley CA
Moreno Valley Ranch GC Moreno Valley CA
Naval Station GC San Diego CA
North Island Navy GC San Diego CA
Oakmont Golf Club Santa Rosa CA
Painted Mountain GC Mesa AZ
Palm Valley Golf Club Good Year AZ
Palm Valley Golf Course Las Vegas NV
Palo Alto GC Palo Alto CA
Papago GC Phoenix AZ
Point Magu Navy Golf Course Point Magu CA
Poplar Creek San Mateo CA
Port Hueneme Navy GC Port Hueneme CA
Randolph Golf Complex Tucson AZ
Rhodes Ranch CC Las Vegas NV
Riverview Golf Course Santa Ana CA
San Bernardino GC San Bernardino CA
San Jose Municipal San Jose CA
San Juan Hills CC SJ Capsitrano CA
San Juan Oaks Hollister CA
San Pedro GC Benson AZ
Sandalwood Golf Course Wailuku HI
Santa Rita GC Corona AZ
Santa Teresa San Jose CA
Sea N Air Navy GC San Diego CA
Seal Beach Navy GC Cypress CA
Seven Hills Golf Club Helmet CA
Shorecliffs Golf Club San Clemente CA
Siena Golf Club Las Vegas NV
Silverbell Golf Course Tucson AZ
Soboba Springs Golf Course San Jacinto CA
Sunol Valley Sunol CA
Toka Sticks Mesa AZ
Torres Blancas Green Valley AZ
Volcano Golf and CC HVNP HI
Waikele Golf Club Waipahu HI
Wailua Golf Club Lihue HI
Western Skies GC Gilbert AZ
Westridge Golf Club La Habra CA
Wildhawk Golf Course Sacramento CA
Note: Some courses have 36 holes and are counted as 2 courses. Totals: AZ = 33, CA = 60, HI = 7, NV = 10

29. GOLFERS DIRECT AUDIENCE PROFILE AND DEMOGRAPHICS
Total Golfers Direct SW Region Audience
 3,000,000 individual affluent consumers and key executives
 5 million annual rounds played / 15 million annual impressions
 The average price is $40 for a round of golf at our participating courses / top price is $175
Golfers are Successful
 College Education: 82.1% are college educated
 Graduate Degrees: over 30% of golfers hold graduate degrees
 Average Income: is $72,000 / Nearly 40% earn over $75,000 / 16.5% earn over $100,000
Golfers are Affluent Consumers
 Autos: own or lease 2.5 vehicles per household / 60% purchased a new vehicle in the past year
 Home Owners: 80% own at least one real estate property / 20% own two or more
 Internet: 60% own a home computer / 90% use a computer at work / 87% use the internet
 Electronics: 93% own high-end electronics
 Cellular Phone: 79% use a cellular phone
 Beverages: 90% drink beverages while playing / 48% drink beer / 49% soda, juice, sports drinks
 Credit Cards: 53% carry Visa Gold/Platinum / 43% carry MasterCard G/P / 11% carry Amex G/P
 Investments: 66% invest in mutual funds / 59% in stocks / 28% in bonds / 63% enrolled in 401k
Golfers are Avid Travelers
 Total Travel: 11.5 million golfers spent $124 billion on all travel-related expenses in 2001
 Expenditures: spent $26.1 billion on golf travel / 75% towards hotel, transportation, food & bev
 Average Spending: average golf travel spending for 2001 was $2,270 per golfer
 Business Travel: 3.2 million business travelers played golf on their trip in 2001
 Vacations: 51% play golf on vacation / 45% of golf trips include air travel
Golfers are Key Executives
 Fortune 500: 96% of all Fortune 500 CEOs list golf as their sport of choice and encourage top
management to use the game to build business relationships

30.  Professional: 55% of golfers hold professional or managerial positions
 Executives: 97% say golfing with a business associate is a good way to establish a close
relationship / 92% say it's a good way to make new business contacts / 43% say some of their
biggest deals have been done on the golf course.
Sources: National Golf Foundation, PGA, USGA, Starwood Hotels & Resorts
GOLFERS DIRECT INDUSTRY FACTOIDS
 Advertisers spend over $230 billion annually to extract money from consumers
 In 2001, advertisers spent $345 million with the top 5 national golf magazines ($737 million
total) and an additional $400 million to endorse professional golfers
 In 2001, advertisers spent a total of $11.1 billion in print media and $5.1 billion in outdoor
advertising; the Top 100 Outdoor Advertisers increased spending by 20.8%
 In 2001, the Top 100 Domestic Advertisers spent an average of $75 million each in magazine
and outdoor advertising, spending an average of $800 million on all advertising
 In 2001, 3 of the top 5 golf magazines experienced significant growth in advertising revenue
highlighted by an increase of Golf Digest advertising revenue of 14%
 The advertising industry is robust and acquisitive; 24 major magazine properties were sold in
2002 and the top 3 outdoor advertising companies continue to expand
 The unduplicated print audience of the national golf magazines represent 10% of all golfers
 The average annual subscription price of a national golf magazine is under $20 while the
average golfer spends $900 on green fees to play our Member Courses
 Frequency is the number of times a certain advertisement has a chance of being seen, by one
viewer, over a certain time period (in our case, a round of golf)
 Impressions defines the total number of views seen throughout the entire advertising
agreement (month, year, etc); Impressions = Frequency x Number of Viewers (audience size)
 CPM is a way to compare the efficiency of similar advertising opportunities; measures the
Cost per Thousand Impressions; CPM = Price of Ad/Audience Size x 1000
 Over the past 6 years, the nation’s supply of golf courses has outgrown (2.1%) the number of
golfers (1.3%)
 There are approximately 12,000 full-sized, 18-hole golf courses in the U.S. and an additional
5,000 courses offering 9 holes. There are also approximately 15,000 courses outside the U.S.
and 2,400 domestic free-standing driving ranges.
 Approximately 500 courses use GPS Computer Displays in their golf carts
 Approximately 8,000 public 18-hole courses and 3,800 public 9-hole courses use golf carts
and are open for year-round play
 Currently 37.1 million golfers play an average of 518.1 million annual rounds of golf
 The compound annual growth rate of golfers is 2.6% since 1987
 The average golfers plays 22 rounds per year; 24% of rounds are played at the same course

31.  Over the past 5 years, golf is one of the few sports that increased its fan base (ESPN)
 Golfers Direct has leased 7,600 exclusive advertising locations offering access to over
3,000,000 individual golfers playing in excess of 5,000,000 annual rounds of golf at 102 golf
courses throughout AZ, CA, HI & NV (50,000 annual golfers per course use a golf cart)
 The average golf score is 100 (54 strokes + 46 putts) over a 4 ½ hour round of golf, giving
each full-page ad a frequency of 3.0 (54 strokes/18 holes = 3 strokes per hole or 3 yardage
book views per ad) over a 15 minute time period (4 ½ hours/18 holes = 15 min per hole)
 Arizona & California are 2 of the top 5 travel destination states for golf
 The total Golf Industry exceeds $63 billion ($40 billion in core industries, $23.5 billion in
enabled industries); Golf exceeds the Amusement/Gambling/Recreation ($56 billion) and
Motion Pictures/Sound Recording ($58 billion) industries