Investments

On July 17, 2006 Socius Capital completed a recapitalization of
On The Scene Productions, Inc, a Los Angeles-based pioneer in
the field of electronic publicity. Funding for the transaction was
provided by Socius Capital, with support from an institutional fund
and a group of private investors.

OTSP produces and distributes video for broadcast, internet,
wireless and out-of-home networks. OTSP creates compelling
stories that attract audiences and provide visibility and credibility
for its corporate, agency and association clients' product, services,
ideas and image.

The company's services blend creative, production and distribution
capabilities to effectively communicate entertainment, consumer
goods, travel and healthcare news to target audiences. By
providing this content to various news media, this form of
alternative advertising/marketing enables an organization to
communicate its message within the context of a news program.

OTSP maintains offices in Los Angeles, New York, Chicago,
Denver and Atlanta.

OTSP has grown rapidly in recent years, both gaining market
share and benefiting with the rest of the industry from the shift of
marketing spending away from traditional broadcast advertising
towards new media and marketing approaches. Historically, the
company has been one of the leaders in helping clients get their
stories incorporated into broadcast news as the demand for news
content from third party providers has grown with the explosion in
the number of hours of news programming coupled with
increasingly limited newsroom budgets. In recent years, the
company has found that its experience, skill set, loyal client base
and talented staff position it well to exploit the shift of marketing
expenditures away from the $100+ billion spent on traditional
advertising towards the rapidly growing sectors of Public Relations
( a $4 billion industry in 2005) and Internet advertising/promotion (a
$15 billion business.)

The founders of the business felt that after 22 years it would soon
be time to move on, and also recognized the energy and resources
that would be required to fully exploit the opportunities of the
changing environment. Their decision to partner with Socius
Capital allowed them to bring in new skills, energy and financial
resources to the company. As a result of the transaction, they were
able to enjoy some of the equity rewards for their past efforts, but
also kept a significant investment in the business that will enable
them to take advantage of the expected appreciation.