HispanicBusiness

(Financial Tables Follow)

                          Digital Generation, Inc.               Unaudited Consolidated Statements of Operations                  (In thousands, except per share amounts)                                  Three Months Ended        Years Ended                                     December 31,          December 31,                                    2012       2011       2012       2011                                 ---------  ---------  ---------  ---------Revenues                         $ 103,610  $ 108,301  $ 386,613  $ 324,257Cost of revenues                    33,829     31,956    135,377    104,697Sales and marketing                 17,017     15,705     60,803     31,549Research and development             4,902      6,927     21,915     17,818General and administrative           9,774     10,596     42,819     35,599                                 ---------  ---------  ---------  ---------Operating expenses, excluding depreciation and amortization, share-based compensation, acquisition and integration expenses and goodwill impairment                         65,522     65,184    260,914    189,663                                 ---------  ---------  ---------  ---------Adjusted EBITDA                     38,088     43,117    125,699    134,594Depreciation and amortization       15,897     13,034     57,300     38,736Share-based compensation             3,654      4,838     17,470     12,430Acquisition and integration expenses                            2,957      1,343      8,513     15,119Goodwill impairment                 11,427          -    219,593          -                                 ---------  ---------  ---------  ---------Operating income (loss)              4,153     23,902   (177,177)    68,309  Interest expense                   7,563      8,206     31,329     14,915  Other, net                         2,100        475      2,800        637                                 ---------  ---------  ---------  ---------Interest expense and other, net      9,663      8,681     34,129     15,552                                 ---------  ---------  ---------  ---------Income (loss) before income taxes from continuing operations                         (5,510)    15,221   (211,306)    52,757Provision for income taxes          15,315      9,373     27,449     26,220                                 ---------  ---------  ---------  ---------Income (loss) from continuing operations                        (20,825)     5,848   (238,755)    26,537Loss from discontinued operations                              -     (1,425)    (1,080)    (2,053)                                 ---------  ---------  ---------  ---------Net income (loss)                $ (20,825) $   4,423  $(239,835) $  24,484                                 =========  =========  =========  =========Basic earnings (loss) per share:  Continuing operations          $   (0.75) $    0.21  $   (8.69) $    0.96  Discontinued operations                -      (0.05)     (0.04)     (0.07)                                 ---------  ---------  ---------  ---------    Total                        $   (0.75) $    0.16  $   (8.73) $    0.89                                 =========  =========  =========  =========Diluted earnings (loss) per share:  Continuing operations          $   (0.75) $    0.21  $   (8.69) $    0.95  Discontinued operations                -      (0.05)     (0.04)     (0.07)                                 ---------  ---------  ---------  ---------    Total                        $   (0.75) $    0.16  $   (8.73) $    0.88                                 =========  =========  =========  =========Weighted average common shares outstanding:  Basic                             27,634     27,361     27,477     27,516  Diluted                           27,634     27,460     27,477     27,760                          Digital Generation, Inc.                       Unaudited Segment Information                               (In thousands)           Three Months Ended December 31,  Three Months Ended December 31,                        2012                              2011          --------------------------------  -------------------------------          Television  Online  Consolidated  Television  Online Consolidated          ---------- -------- ------------  ---------- ------- ------------Revenues  $   62,427 $ 41,183 $    103,610  $   64,311 $43,990 $    108,301Segment Adjusted EBITDAbefore corporate overhead     33,518   11,151       44,669      37,473  10,674       48,147Less corporate overhead                           (6,581)                          (5,030)                              ------------                     ------------Adjusted EBITDA                             38,088                           43,117Less: Acquisition  and  integration                       (2,957)                          (1,343) Share-  based  compensation                      (3,654)                          (4,838) Depreciation  and  amortization                     (15,897)                         (13,034) Goodwill  impairment                       (11,427)                             ---                              ------------                     ------------Income from operations                   $      4,153                     $     23,902                              ============                     ============            Year Ended December 31, 2012      Year Ended December 31, 2011          --------------------------------  -------------------------------          Television  Online  Consolidated  Television  Online Consolidated          ---------- -------- ------------  ---------- ------- ------------Revenues  $  245,961 $140,652 $    386,613  $  246,780 $77,477 $    324,257Segment Adjusted EBITDAbefore corporate overhead    129,645   22,642      152,287     138,299  15,043      153,342Less corporate overhead                          (26,588)                         (18,748)                              ------------                     ------------Adjusted EBITDA                            125,699                          134,594Less: Acquisition  and  integration                       (8,513)                         (15,119) Share-  based  compensation                     (17,470)                         (12,430) Depreciation  and  amortization                     (57,300)                         (38,736) Goodwill  impairment                      (219,593)                             ---                              ------------                     ------------Income (loss) from operations                   $   (177,177)                    $     68,309                              ============                     ============                          Digital Generation, Inc.               Unaudited Consolidated Statements of Cash Flows                               (In thousands)                                                            Years Ended                                                           December 31,                                                       --------------------                                                          2012       2011                                                       ---------  ---------Cash flows from operating activities:  Net income (loss)                                    $(239,835) $  24,484  Adjustments to reconcile net income (loss) to net   cash provided by operating activities:  Goodwill impairment                                    219,593          -  Depreciation of property and equipment                  27,609     18,580  Amortization of intangibles                             29,691     20,699  Deferred income taxes                                   26,037      7,758  Provision for accounts receivable losses                 3,202      1,471  Impairment of Springbox unit                                 -      1,800  Impairment of long-term investments                      2,394          -  Share-based compensation                                17,470     12,430  Loss on sale of Springbox unit                           1,000          -  Other                                                      501       (619)  Changes in operating assets and liabilities:    Accounts receivable                                      344      1,759    Other assets                                          (3,108)    (4,905)    Accounts payable and other liabilities                (7,900)    (6,950)    Deferred revenue                                        (852)       506                                                       ---------  ---------Net cash provided by operating activities                 76,146     77,013                                                       ---------  ---------Cash flows from investing activities:  Purchases of property and equipment                    (19,903)   (11,802)  Capitalized costs of developing software               (12,745)    (7,321)  Purchases of short-term investments                          -     (9,148)  Proceeds from sale of short-term investments            10,350      2,860  Long-term investment                                    (1,517)         -  Other                                                   (2,211)        33  Acquisitions, net of cash acquired                     (10,089)  (499,945)                                                       ---------  ---------Net cash used in investing activities                    (36,115)  (525,323)                                                       ---------  ---------Cash flows from financing activities:  Proceeds from issuance of common stock, net of costs       427        392  Purchases of treasury stock                                  -    (21,547)  Payment of tax withholding obligation in exchange   for shares tendered                                       (93)    (1,129)  Proceeds from issuance of long-term debt                     -    485,100  Payment of debt issuance costs                               -    (12,019)  Repayments of long-term debt                           (29,900)    (2,450)  Repayments of capital leases                              (497)      (431)                                                       ---------  ---------Net cash provided by (used in) financing activities      (30,063)   447,916                                                       ---------  ---------Effect of exchange rate changes on cash and cash equivalents                                               1,977       (440)                                                       ---------  ---------Net increase (decrease) in cash and cash equivalents      11,945       (834)Cash and cash equivalents at beginning of year            72,575     73,409                                                       ---------  ---------Cash and cash equivalents at end of year               $  84,520  $  72,575                                                       =========  =========Supplemental disclosures of cash flow information:  Cash paid for interest                               $  28,169  $  12,721  Cash (received) paid for income taxes                $  (1,749) $  26,231  Non-cash component of purchase price to acquire a   business                                            $   5,645  $       -  Landlord lease incentives                            $   5,599  $       -                          Digital Generation, Inc.                    Condensed Consolidated Balance Sheets                               (In thousands)                                                       December    December                                                         31,         31,                                                         2012        2011                                                     ----------- -----------                                                      UnauditedCash and short-term investments                      $    84,834 $    82,965Accounts receivable, net                                  97,583     100,719Property and equipment, net                               66,169      54,159Goodwill                                                 369,137     580,229Deferred income taxes                                          -       4,796Intangibles, net                                         180,156     201,405Other                                                     34,515      33,204Assets of discontinued operations                              -         766                                                     ----------- -----------  Total assets                                       $   832,394 $ 1,058,243                                                     =========== ===========Accounts payable and accrued liabilities             $    42,270 $    48,234Deferred revenue                                           1,627       2,474Deferred income taxes                                     27,063       9,477Debt                                                     453,918     483,033Other                                                     16,322       7,239                                                     ----------- -----------  Total liabilities                                      541,200     550,457Total stockholders' equity                               291,194     507,786                                                     ----------- -----------  Total liabilities and stockholders' equity         $   832,394 $ 1,058,243                                                     =========== ===========