09-06-30 Web 2.0 Weekly

SOFTWARE & SERVICES

30 JUNE 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY

[email protected] Arun Thomas (Associate) 416.860.7666

INCREASED DEAL ACTIVITY; BUT DEAL SIZES DROP S E CO N D Q UA RT ER MA RG INAL L Y B ET T ER T HAN F IR ST Q UA RT ER The month of June saw 35 financings totalling $175.1 million. From a sector perspective, Social Networking saw the highest level of activity over the last three months, with Ad Network, Media, Gaming, and Video attracting the most interest. The Social Network sector benefited from a $200 million investment in Facebook by Digital Sky Technologies in the month of May. The other transaction of size that gained much real estate on business news was Disney’s investment in Hulu (in May). Financing for the second quarter of 2009 marginally passed that raised in the first quarter of 2009 – reversing the downtrend since the second quarter last year. However, for the period ended Q2/CY09, total capital raised was below the Q2/CY08 level. The total capital raise in Q2 was $658.8 million, buoyed by the $200 million Facebook transaction, and is well below Q2/CY08 totals ($1.3 billion). Financing by Type (Amount raised)

Financing by Type (Number of Deals) 1,200.0

100

90 143.0

5 80

1,000.0

3

5 70 800.0

35 60

147.1

40

(#)

32 50

Late Stage (D/E) Mid Stage (B/C)

24

Early Stage (Angel/A)

2

(US$m)

5 Late Stage (D/E) 600.0 780.0

35.0

Early Stage (Angel/A) 222.3

2

40

Mid Stage (B/C)

53.5

501.4

20

400.0

30

361.8 400.3

21 27.7

45

42

20

229.7

39 200.0

32

212.4

25 10

18

183.2

180.1

197.4

Q1/08

Q2/08

Q3/08

149.7

150.6

Q1/09

Q2/09

75.3 -

Q1/08

Q2/08

Q3/08

Q4/08

Q1/09

Q2/09

Q4/08

Capital Market Activity: The month of June closed with 35 financings totalling $175.1 million led by the $16 million capital raise by Sugar Inc., closely followed by Tumri ($15 million), Boku ($13 million), Wimba ($12 million), and Grab Networks ($12 million). All other transactions were less than $10 million. The average value for the month is $4.7 million, below the average value for May of $6.4 million (excluding the $200 million investment in Facebook) on 16 financings. The April average was $6.2 million on 23 financings Price week VOIS worst

Performance: Most of the companies in our universe had positive stock price performances over the past (for stocks with prices greater than $1) (Figure 13), with 26 companies showing positive returns on the week. Inc. (VOIS-OTCBB) led the group with a 200.0% return, while Actoz Soft Co. Ltd. (A052790-KOSE) had the return, dropping 14.3% in the week.

This report has been created by Anal ysts that are employed by Research Capital Corporation, a Canadian Investment Dealer. Toronto 416.860.7600

Montreal 514.399.1500

www.researchcapital.com Vancouver 604.662.1800

Calgary 403.265.7400

Regina 306.566.7550

Page 2

THE WEB 2.0 UNIVERSE Ninety public Web 2.0 companies identified: Our Web 2.0 universe contains 90 companies, with a combined market cap of ~$56 billion (Figure 1). The average market cap for the group is ~$622 million (but a median of only $50.5 million), with average trailing revenue of $152.5 million (median $53.7 million). The companies are also generally profitable, with a median EBITDA margin of 13.2%. On a valuation basis, the overall average is 5.3x trailing revenue (median 1.5x) and 9.9x trailing EBITDA (median 9.3x). Fourteen of the companies have more than 500 employees. C omparable C ompany A nalys is > W eb 2.0 C om pany Nam e

L TM as o f T ic ker

E xc hange

Acce le riz e N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Co rp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer In ternational C ornerW orld C orporation C yberplex Inc. D ADA S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, In c. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid M us ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K A B D is tribution Inc. K ings oft Co. Ltd. Lingo Media Corporation Live Wo rld Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Mode rn Times G roup Mtg AB MOK O.mobi L imited Myriad G rou p AG N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W izza rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc.

3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 6 /30 /200 7 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 9 /30 /200 8 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 3 /31 /200 9 2 /28 /200 9 NA 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 6 /30 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 9 /30 /200 7 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 7 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 9 /30 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 8/2/2008 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 6 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 NA 3 /31 /200 9 1 2/31 /200 7 1 2/31 /200 8 3 /31 /200 9

OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S N as da qG S OT C P K GTSM OT C B B TSX CM KLSE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GTSM TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX K OS E S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S OT C P K R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K OT C B B N as da qG S AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C P K XT R A K OS E K OS E T S XV

H igh Low A vera ge Median

Figure 1. Web 2.0 Universe Summary Source. Capital IQ

AC LZ A0 527 90 38 38 AS MH BS GC B W AV B Y OC AIM :B G T BW BA C HIN .A C Y OU C GW Y G T S M:308 3 C WR L T S X:C X C M:D A DXN DIB Z DG LP DG T W DP DM A0 410 60 E XT I F NG P T S X:F MN F RG 61 80 38 12 G E O1 V GA G IG M GR VY T S E : 363 2 37 65 A0 470 80 IAC I IAS C.A IE E AS X:J MB T S X:J T V T S X:K AB 38 88 T S XV : LM LV WD LOOK MA G Y 21 21 MT G B MK B MY R N A0 956 60 77 7 NT E S N XP C 24 97 59 005 7 OT E X OP W V PW R D QP S A R BCI S N DA S F LY A0 662 70 S T VI S N MN S MV I S C LW S OH U LOV S P XA 70 0 K ID S .Q N CT Y TSCM T OS O TR EE T S XV : US S U NT D U OMO V C LK V OIS W ZE N W ZE W DD D W YND O1B C A0 527 70 A0 237 70 T S XV : ZIP

Trading Currenc y HQ US D KR W J PY US D US D US D US D GBP US D US D US D US D TWD US D C AD EUR MY R US D US D US D US D KR W US D US D C AD EUR TWD J PY EUR US D US D US D J PY J PY KR W US D US D C AD AU D C AD C AD HKD C AD US D US D US D J PY S EK AU D C HF KR W HKD US D US D J PY INR US D US D US D US D US D US D US D KR W US D US D US D US D US D US D US D HKD US D US D US D NOK US D C AD US D US D US D US D US D US D US D US D EUR KR W KR W C AD

U nited S ta tes S outh K orea J apan U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes U nited K ingdom U nited S ta tes H ong K ong C hina U nited S ta tes T aiwan U nited S ta tes C ana da Ita ly Ma la ys ia U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany T aiwan J apan F inland C hina T aiwan S outh K orea J apan J apan S outh K orea U nited S ta tes C ana da C ana da Aus tra lia C ana da C ana da C hina C ana da U nited S ta tes U nited S ta tes U nited S ta tes J apan S weden Aus tra lia S witzerla nd S outh K orea C hina C hina U nited S ta tes J apan India C ana da U nited S ta tes C hina U nited S ta tes R us s ia C hina U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes C hina U nited S ta tes U nited S ta tes C hina U nited S ta tes C hina U nited S ta tes N orwa y U nited S ta tes C ana da U nited S ta tes C ana da U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany S outh K orea S outh K orea C ana da

Cu rrent P ric e 0 .40 24 000 71 200 0 .02 0 .03 0 .10 0 .65 0 .01 0 .23 1 .55 43 .63 0 .02 420 .00 0 .06 1 .65 6 .30 0 .39 0 .00 0 .04 2 .05 0 .47 790 .00 0 .10 0 .00 0 .79 9 .90 58 .00 107 400 0 .04 8 .39 5 .98 1 .09 6 750 240 100 4 430 15 .91 0 .20 0 .08 0 .39 0 .74 0 .63 5 .69 1 .10 0 .06 1 .14 0 .01 589 000 217 0 .08 5 32 100 5 .03 36 .90 0 .61 35 900 .00 42 .05 36 .70 2 .41 30 .55 0 .68 0 .90 57 .20 14 .81 9 810 .00 0 .45 0 .01 0 .01 0 .68 65 .87 2 .47 0 .20 94 .55 0 .02 10 .63 2 .16 0 9 .65 0 .08 6 .47 0 .15 11 1 3 0 .51 0 .12 0 .04 29 .88 8 400 .00 6 800 .00 0 .01

U S D Market C ap ($m)

U S D LT M To tal R ev ($m)

US D L TM T otal E B ITDA ($m)

E BITDA %

T E V/LT M R evenu e

TE V /L TM E BITDA

E mplo yees

1 1.1 16 0.4 4 0.4 0 .9 1 .7 2 .9 2 9.3 4 .5 1 9.5 16 4.4 2,3 99.7 0 .3 1,0 73.3 3 .9 9 2.3 14 3.5 2 5.1 0 .0 2 .6 5 5.5 2 4.3 4 4.7 4 .4 0 .2 3 5.8 3 2.7 26 7.7 10 8.3 5 0.5 1,8 94.9 32 6.0 3 0.3 1,5 72.3 28 6.8 7 5.8 2,4 01.1 1 4.0 3 .5 1 5.5 7 2.7 7 6.2 79 6.5 1 2.2 1 .9 1 9.5 5 .5 94 4.4 1,8 50.0 5 .2 9 8.0 26 3.9 34 3.1 4,5 40.6 3 4.0 4 6.3 3 0.5 1,9 31.3 20 0.8 1,4 85.8 8 .6 12 4.8 3,9 68.7 37 2.8 32 1.2 4 .9 0 .0 0 .0 2 9.5 2,5 20.4 5 0.8 9 .7 22,0 11. 2 0 .4 28 5.1 6 6.1 0 .1 10 4.2 1 .7 54 0.8 1 2.9 99 3.2 8 .7 4 1.0 2 4.4 6 .3 0 .7 22 1.3 10 3.0 2 8.4 0 .3

4.1 90. 2 64. 5 0.1 0.1 8.4 7.1 0.3 0.0 389 .9 222 .5 6.7 56. 1 1.3 70. 4 236 .1 78. 1 NA 0.7 NM 0.8 14. 4 NM 7.2 5.0 3.2 125 .9 76. 7 5.9 218 .9 183 .6 38. 2 30. 6 107 .5 53. 9 1 ,40 6.4 0.0 1.5 14. 4 18. 1 71. 1 129 .0 0.9 11. 4 60. 7 0.1 125 .7 1 ,74 1.6 1.2 40. 0 193 .4 86. 9 470 .4 NM 92. 1 116 .5 782 .6 197 .2 228 .1 0.1 151 .8 570 .0 215 .2 179 .8 3.3 2.0 0.1 0.0 460 .0 54. 3 0.1 1 ,20 3.3 112 .0 249 .9 67. 0 2.1 215 .6 22. 5 811 .2 0.6 591 .7 0.0 22. 5 5.6 0.0 NA 53. 2 53. 6 11. 1 2.6

(4 .4) 1 9.6 4 .1 (2 .3) (2 .0) (1 2.6) (9 .5) (1 .9) (4 .6) 3 0.8 13 5.1 (6 .6) 3 1.4 NM 7 .3 3 4.5 1 0.7 NM (2 .6) (3 .0) (3 .7) (3 .4) NM 2 .4 (6 .9) (6 .1) 2 0.9 1 8.2 (1 5.4) NM NM 7 .3 1 1.0 1 9.3 (1 4.5) 4 2.6 (0 .8) (4 .7) 5 .4 (1 1.8) 8 .5 5 2.0 (1 .5) (0 .0) (3 .8) (3 .1) 4 4.6 26 6.8 (2 .4) 0 .8 5 1.9 3 4.4 30 5.7 (4 .9) 1 1.0 (2 7.3) 19 9.2 (2 .1) 12 4.6 (1 0.8) 1 9.8 26 0.8 2 8.3 1 1.7 0 .9 (0 .7) (0 .1) (4 .8) 20 0.5 1 1.8 (2 .6) 57 6.6 (1 3.5) 8 4.2 1 .9 (1 .1) (1 3.3) 0 .1 17 7.3 (0 .5) 10 5.5 (1 .1) (0 .4) (5 .3) (0 .8) NM 1 6.6 1 1.5 1 .2 (2 .0)

NM 21 .7% 6 .3% NM NM NM NM NM NM 7 .9% 60 .7% -9 8.9% 56 .0% NM 10 .3% 14 .6% 13 .7% NM NM NM NM -2 3.6% NM 34 .1% NM NM 16 .6% 23 .7% NM NM NM 19 .2% 36 .0% 18 .0% -2 6.8% 3 .0% NM NM 37 .2% -6 5.2% 11 .9% 40 .3% NM -0 .4% -6 .3% NM 35 .4% 15 .3% NM 1 .9% 26 .8% 39 .5% 65 .0% NM 12 .0% -2 3.5% 25 .5% -1 .0% 54 .6% NM 13 .1% 45 .8% 13 .2% 6 .5% 28 .0% -3 4.8% -6 0.5% NM 43 .6% 21 .7% NM 47 .9% -1 2.0% 33 .7% 2 .9% -5 0.6% -6 .2% 0 .2% 21 .9% -7 8.2% 17 .8% NM -1 .9% -9 4.5% NM NM 31 .2% 21 .6% 10 .5% -7 8.3%

3.9x 1.5x 0.2x 1 9.2 x 4 1.6 x 4.8x 1 6.1 x 0.5x 9.9x 0.0x 1 8.0 x 4.1x 1.3x 0.8x 0.5x 5.8x 3 2.7 x 3.2x 5.6x 9.6x 1.9x 0.6x 7.8x 1.4x 4 8.6 x 2.4x 1.1x 0.4x 1.8x 0.7x 3.5x 1.1x 5.8x 1 2.6 x 0.1x 6.6x 1.4x 3.5x 2.7x 1.3x 2.3x 0.1x 0.3x 2.6x 0.5x 0.3x 0.0x 0.2x 1.4x 1.8x 1.0x 1.1x 0.0x 4.7x 0.9x 2 0.0 x 0.2x 0.0x 4.6x 0.4x 0.2x 1.0x 2 0.8 x 1.5x 4.6x 3.2x 2.1x 2.5x 0.6x

6. 7x 2. 8x 5. 8x 16 .4x 32 .1x 12 .2x 5. 6x 3. 8x 11 .7x 2. 6x 13 .4x 12 .1x 2. 0x 9. 6x 14 .3x 18 .5x 9. 0x 4. 9x 5. 9x 0. 5x 10 .0x 0. 5x 0. 2x 0. 3x 10 .8x 27 .5x 3. 7x 10 .7x 4. 4x 41 .6x 0. 8x 4. 7x 8. 4x 10 .2x 9. 8x 23 .5x -

11 NA NA 3 4 53 69 9 46 NA 6 28 37 NA NA NA 5 78 NA NA 7 3 NA NA 2 22 NA NA NA NA 1 08 1, 570 NA 6 36 NA NA NA 3, 200 NA NA 72 2 37 NA 2, 271 NA NA 90 14 NA 2, 969 NA 4 05 NA 2, 426 NA 19 NA NA 3, 400 6 30 2, 096 74 NA NA 5 14 NA 11 33 NA NA 3, 197 1 83 7 6, 194 3 47 NA 3 10 16 7 00 NA 1, 469 NA 1, 189 4 3 14 1 10 1 NA 2 39 NA NA NA

22,0 11. 2 0 .0 622.7 5 0.5

1 ,741 .6 0.0 152 .5 53. 7

57 6.6 -27.3 33.2 0 .9

65 .0% -9 8.9% 6.7% 13 .2%

4 8.6 x 0.0x 5.3x 1.5x

41 .6x 0. 2x 9.9x 9. 3x

6,1 94 1 745 3 10

Page 3 CAPITAL MARKETS ACTIVITY (M&A AND FINANCING) More deals, smaller sizes: The month of June closed with 35 financings totalling $175.1 million led by the $16 million capital raise by Sugar Inc, closely followed by Tumri ($15 million), Boku ($13 million), Wimba ($12 million), and Grab Networks ($12 million). All other transactions were less than $10 million. The average value for the month-to-date is $4.7 million, below the average value for May of $6.4 million (excluding the $200 million investment in Facebook) on 16 financings. The April average was $6.2 million on 23 financings.

Financing Activity Last Three Months 200.0

180.0

7.0

6.2

6.4 6.0

160.0

5.0

140.0 4.7

120.0 (US$m)

(US$m)

4.0 100.0 3.0 80.0

60.0

2.0

40.0 1.0 20.0

0.0

0.0 Apr-09

May-09 (excl FB) Total

Jun-09

Average

Figure 2. Financings, Last Three Months Source. Company reports

Sugar Inc. leads capital raise: The capital raise from Sugar Inc. for $16 million was the largest deal in June. Five of the 35 deals in the month were greater than $10 million. For additional details, see Figures 30 and 31 (at end of note). Digital Sky Technologies announced a $200 million investment in Facebook in May, the largest deal so far in the last twelve months. The Facebook transaction aside, fourteen of the 20 deals in May were equal to or greater than $5 million. Also note that the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred in May. E-bay had bought StumbleUpon for $75 million.

Facebook StumbleUpon One Net Entertainment Collective Media Sugar Inc. GOOM Radio Tumri Boku Marin Software The Rubicon Project Cyberplex Wimba Grab Networks FreeWheel Peer39 OpenX Cellufun Conductor Inc. Imeem Goojet SAS EveryZing ScanScout AdMeld Inc. beeTV I Love Rewards Batanga WonderHill BlogHer Inc. Gist blueKiwi Software SA Nokeena Fuhu Inc. Sense Networks Azuki Systems Zoosk Gather TimeBridge Taomee DocuSign OLX Viximo DoubleTwist IMShopping Socialtext Animoto GameGround Mixercast Medialets RingRevenue SoundCloud Crowdcast TubeMogul YuMe eRepublik Newser LLC ClickFuel Tribal Nova Inigral AdEx Media GROU.PS Yapta Resonate Networks Tripbase OneTXT my6sense Cliqset Mo'Minis VoxPop Socialcast Brandtology Scan & Target Jodange LiquidPlanner TodaCell Glubble AdWhirl Picaboo Loop'd Network Foodista MashLogic Jaxtr

(US$m)

Page 4

Financing & M/A Summary - Last Three Months

250.0

200.0

150.0 Jun-09

May-09

Apr-09

100.0

50.0

0.0

Figure 3. Capital Market Activity, Last Three Months Source. Company reports

Social Network remains the most active sector: Activity over the last three months was busiest in the Social Network sector, with 13 companies raising over $246.4 million (Figure 4). The Ad Network sector has the next highest totals, with 17 companies raising $130.2 million. We would note that the Facebook transaction at $200 million (in May) has skewed the results significantly in favour of Social Networks. Nevertheless, the following sectors continue to generate the most capital activity over the last few months: Ad Network, Media, Gaming, Video, and Social Networks.

Page 5

Capital Market Activity by Sector - Last Three Months 300.0

250.0

(US$m)

200.0

150.0 246.4 100.0

130.2 50.0 48.3

35.8

Social Commerce

Analytics

Travel

SAS

1.3

Aggregation

2.0

Mobile

4.4

Widget

4.7

Mobile Payment

6.8

Collaboration

8.0

Infrastructure

10.4

Enterprise

13.0

Search

17.0

Virtual World

17.5

Blog

18.2

Video

18.3

Comment/Reputation

19.5

Gaming

23.0

Media

28.4

Ad Network

30.2

Social Networks

0.0

13

17

7

6

2

3

2

4

2

5

5

3

1

2

2

1

1

2

1

1

# companies

Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports

Average round size decreases: On a trailing 12-month basis, total financing dollars increased slightly as of June 2009, with average round sizes decreasing slightly (Figure 5).

Page 6

LTM Financing 18.0

4,000.0

16.0

3,500.0

14.0 3,000.0

12.0 2,500.0

(US$m)

(US$m)

10.0 2,000.0 ` 8.0 1,500.0 6.0

1,000.0 4.0

500.0

2.0

Total

Jun-09

Apr-09

Feb-09

Dec-08

Oct-08

Aug-08

Jun-08

Apr-08

Feb-08

Dec-07

Oct-07

Aug-07

Jun-07

Apr-07

Feb-07

Dec-06

Oct-06

Aug-06

Jun-06

Apr-06

Feb-06

Dec-05

Oct-05

Aug-05

0.0 Jun-05

0.0

Average

Figure 5. Financings, Last 12 Months Source. Company reports

Cumulative total nears $7.1 billion: Overall, on a cumulative basis, Web 2.0 financings have totalled nearly $7.1 billion, with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6). Financing for the second quarter of 2009 marginally passed that raised in the first quarter of 2009 – the second straight quarter of increased investments. However, for the period ended Q2/CY09, total capital raised was below the Q2/CY08 level. The total capital raise in Q2 was $658.8 million buoyed by the $200 million Facebook transaction and is well below Q2/CY08 totals ($1.3 billion).

Page 7

Web 2.0 Financing (cumulative) 8,000.0

1,600.0

1,400.0

7,000.0

1,347.6

6,000.0

1,200.0 1,000.6

5,000.0

1,000.0

4,000.0

800.0 594.2

600.0

380.9

400.0

38.8 24.7

3,000.0

361.3

2,000.0

203.7 174.8177.8 132.4145.6130.4

200.0 88.3

658.8 608.3

(US$m)

(US$m)

857.6

1,000.0

61.5 51.7 33.5 22.2 43.3 0.0

0.0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 2004

2005

2006

2007

2008

2009

Figure 6. Financing, Cumulative Source. Company reports

U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 79.9% of financings/M&A involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S. leads with 72.8% of deals, while the UK and Israel took 4.9% and 4.5% share of the total number of financings, respectively (Figure 8). Financing/M&A by Country - LTM ($) China 4.7%

Financing/M&A by Country - LTM (#) Israel Canada UK 4.5% 4.1% 4.9%

France 3.6% UK 3.4%

France 3.7%

Israel 2.9%

ROW 10.1%

Canada 2.3%

Netherlands 1.0%

ROW 3.2%

USA 78.9%

USA 72.8%

Figures 7 & 8. Financing/M&A, by Country (LTM, $, #) Source. Company reports

Page 8

Larger volume of early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 27.8% of the total, with later-stage (Series D, E and PIPE) deals accounting for just 7.7%. Financing by Type - LTM

Series B 27.8%

Series C 12.8%

Series D 4.4% Series E 0.7%

Angel/Seed 12.5%

Series A 37.0% Debt financing 2.2% PIPE 2.6%

Figure 9 Financing, by Type (LTM, #) Source. Company reports

Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, C and D rounds has all been lower than the overall average (Figure 10).

Page 9

Average financing round size 45.0 41.9 40.0

34.7

35.0

30.0 26.3

26.0 24.0

(US$m)

25.0

19.2

20.0

15.0 11.3 10.9

11.3 10.8

10.0 7.1

6.6

6.3 5.3

5.0

3.0

2.8

0.0 Angel/Seed

Debt financing

PIPE

Series A

Series B

LTM Average Size

Series C

Series D

Series E

Overall Average

Figure 10. Average Size per Round Source. Company reports

Early stage and Mid stage companies attract the most investments: For Q2/CY09, Early and Mid stage capital raises generated the largest number of deals, with only 5 out of 76 deals in Late stage companies (Figure 11). Early stage (Angel/A) and Mid stage (B/C) continue to lead capital market activity for the quarter, with $222.3 million going into Late stage companies from an overall total of $602.6 million (Figure 12). Comparing this to Q2/CY08, although the number of financings has gone up in Q2/CY09 compared to the prior year, the total dollars raised was $602.6 million versus $1.1 billion in Q2/CY08. Financing by Type (Number of Deals)

Financing by Type (Amount raised)

100

1,200.0

90 5 80

143.0

3

1,000.0 5

70 35 60

800.0

40

147.1

5

50

Late Stage (D/E) Mid Stage (B/C)

24

Early Stage (Angel/A)

2

(US$m)

(#)

32

Late Stage (D 600.0 780.0

35.0

Mid Stage (B

53.5

Early Stage (

2

40

222.3

20

501.4

30

21

400.0

361.8 400.3

45

42

20

39

27.7 229.7

32 25 10

200.0

18

212.4 183.2

Q1/08

Q2/08

Q3/08

Q4/08

Q1/09

180.1

197.4

Q2/09

149.7

150.6

Q1/09

Q2/09

75.3 Q1/08

Figures 11 &. 12 Financing/M&A, by Country (LTM, $, #) Source. Company reports

Q2/08

Q3/08

Q4/08

Page 10

CAPITAL MARKETS ACTIVITY (PRICE PERFORMANCE) Price Performance: Our Web 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 13). Web 2.0 Index Price Performance

120

110

100

90

80

70

60

50

^COMP - Share Pricing

6/29/2009

6/15/2009

6/1/2009

5/18/2009

5/4/2009

4/20/2009

4/6/2009

3/23/2009

3/9/2009

2/23/2009

2/9/2009

1/26/2009

1/12/2009

12/29/2008

12/15/2008

12/1/2008

11/17/2008

11/3/2008

10/20/2008

10/6/2008

9/22/2008

9/8/2008

8/25/2008

8/11/2008

7/28/2008

7/14/2008

6/30/2008

40

Index: Web 2.0 X (Market Cap Weights) - Index Value

Figure 13. Web 2.0 Price Performance Source. Capital IQ

VOIS Inc. leads; Actoz Soft Co. Ltd falls: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 14), with 26 companies showing positive returns on the week. VOIS Inc. (VOIS-OTCBB) led the group with a 200.0% return, while Actoz Soft Co. Ltd. (A052790-KOSE) had the worst return, dropping 14.3% in the week.

Page 11

1 Week P rice P erformance V OIS , Inc. Frogs ter Interactive Pic tures A G Chines e Gamer International Changy ou.com Limited Openw ave S y s tems Inc. S hutterfly , Inc. Modern Times Group Mtg A B Northgate Technologies Limited Mix i, Inc. CDC Corp. S handa Interactive Entertainment Ltd. K ings of t Co. Ltd. Neteas e.com Inc. V alueClic k Inc. DA DA S pA United Online Inc. S ohu.com Inc. G amania Digital Entertainment Co., Ltd. GigaMedia Ltd. Y nk K orea Inc. Tencent Holdings Ltd. Perf ect World Co., Ltd. Open Tex t Corp. Giant Interac tive G roup, Inc. S park Netw orks , Inc. The9 Limited Lingo Media Corporation IA C/InterA ctiveCorp. XING A G Cy berplex Inc. NetDragon WebS of t, Inc. Ngi G roup Inc. Eolith Co. Ltd. HanbitS of t, Inc. Y edangOnline Corp. A Q Interactive, Inc. G ree, Inc. NEOWIZ Games Corporation G ameOn Co Ltd. A ctoz S of t Co., Ltd. -50.0% Figure 14. 1-Week Price Performance Source. Capital IQ

200.0% 24.5% 23. 7% 23.3% 18.7% 13.6% 13.3% 12.7% 12.6% 11.5% 10.4% 9.4% 9.2% 8.1% 7.7% 7.7% 7.6% 7.4% 7.4% 7.1% 6.4% 5.6% 4. 9% 4. 9% 3.8% 0.9% 0.0% -0.3% -0.4% -0.6% -2.5% -2.6% -3. 7% -3. 7% -4.7% -5.3% -5.9% -6.3% -7.7% -14.3% 0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

Page 12

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

K ey Developmen ts C ompany

Headline

Notes

G eo S entric Oyj (HL S E :G E O1V )

G eoS entric O yj Adds E nglis h C a pa bility to G yP S i i Applic a tion

G eoS entric O yj a nnounced new a va ila bility, a s well a s number of upda tes , to enha nc e the a pplic a tion ba s ed on feedba ck from its member community . The c ompa ny is a dding J a va ca pa b ility in E nglis h, upda ting its iP hone and B la c kberry a pplic a tions a nd is also going l ive on Nok ia 's O vi store. G y P S ii ha s a dded a n E nglis h la ngua ge vers ion of its J a va a pplic a tion-which wa s prev ious ly only a va ila ble in C hina in loc a l la ngua ge. The E nglis h v ersion is a v a ila ble for downloa d now in the U S , UK a nd ma jor W es tern E uropea n ma rk ets a t www.gy psii. co m/m.

G iant Interac tive G ro u p, Inc . (N YS E :G A)

G ia nt I ntera c tiv e L a unc hes the G olden L a nd, I ts Firs t W eb G a me

G ia nt Intera c tiv e G roup Inc . la unc hes the offic ia l site of T he G olden L a nd, its first We b ga me, on June 22, 2009. T he ga me will sta rt a c los ed beta tes t s oon, indic a ting tha t the lea ding C hinese online ga me develo per a nd opera tor is fora ying into the W eb ga me field. G ia nt Intera c tiv e bega n the R & D of the ga me in April 2008. I n J uly of the y ea r, its boa rd c ha irma n a nd C E O S hi Y uzhu proposed tha t ga me a nd community opera tors s hould work together. W hen the c ompa ny s pent U S D 51 million ta k ing a s ta k e in 51. com, a blog c ommunity , S hi dis c losed tha t G ia nt Intera c tiv e would dip toe in the development of c a s ua l ga mes a nd W eb ga mes.

G eo S entric Oyj (HL S E :G E O1V )

E uropea n P a tent O ffi ce G ra nts a n E U -W ide P a tent Friend Fi nding T echnology to G eoS entric O yj

G eoS entric O yj a nnounced tha t the E uropea n P a tent O ffic e ha s gra nted a n E U-wi de pa tent for the tra nsmis sion of loc ation-ba s ed informa ti on between devic es a nd the subs equent publis hing of tha t informa tion for viewing on a ma p. T his fea ture represents what the industry has c oined 'friend finding' a nd a s s uch, is the corners tone of the combina tion of mobile s oc ia l network ing a nd loc a tion ba sed serv ices . T his signific a nt Friend F inding pa tented technology ena bles G yP S ii users to loca te a nd s ha re informa tion with friends to v iew on a ma p, a nd further protec ts intellec tua l property ena bling k ey fea tures s uc h a s pus hing user genera ted pla c e c ontent o r reques ting a friend's loca tion s o they c a n meet-up, on mobile devic es . The compa ny us es the pa tented tec hnology in the fri end finding c a pa bility to a llow users to sha re their loc a tion over a mobile devic e. U sers c a n reques t or sha re their loc a tion a nd a fa vorite pla c e loca tion with one or ma ny friends , from mobile devic e to mobile devi ce, a nd view the lo ca tion on a ma p on the devic es. T he pa tent is the firs t of 6 pa tent tec hnologies developed by G yP S ii to be gra nted by the P a tent O ffic e. T he c a pa bility c a n a lso be a pplie d in other uses suc h a s Fleet M a na gement, F ield O p

V OIS , Inc . (OTC BB :VOIS )

V O IS I nc. F iles Amendment to Articles of Inc orpora ti on

O n J une 16, 2009 the B oa rd of D irectors of V O I S I nc . a pproved a 100 for one forwa rd s toc k s plit of the c ompa ny 's is sued a nd outs ta nding common s tock in the form of a div idend. I n c onjunction therewith, on J une 18, 2009 V O I S I nc. filed Artic les of Amendment to Articles of Inc orpora tion with the S ecreta ry of S ta te of F lorida . No s ha reholder c onsent wa s required in this a c tion. The effectiv e time of the forwa rd stoc k split will be c lose of bus iness on J uly 8, 2009.

T he9 L imited (Nas daqG S : NC TY)

The9 L imited L ays O ff E mploy ees in B ei jing

The9 L imi ted dismis sed employees of its B eijing bra nc h on J une 22, 2009. T he c ompa ny decides to ha nd ov er the opera ting right of F IF A O nline 2 a nd A tla ntica to its S ha ngha i hea dqua rters , ins tea d of the B eijing bra nch a s pla nned. T he compa ny s a id tha t employees of its B eijing bra nc h should not receive interv iews . If they v iola te it, the compa ny wi ll not giv e them demis sion compens a tions , ev en s ue them in court, bec a use they ex pose busi ness s ec re ts .

2K S po rts Inc .; T enc ent H oldings Ltd. (S E HK :700)

2K S ports P a rtners with Tenc ent to B ring NB A(R ) 2 K O nline to Asia

2K S ports I nc. a nnounc ed its pa rtners hip with Tenc ent H oldings Ltd. to co-dev elop the online v ersion of N B A 2K a nd distribute it to C hina a nd other k ey ma rkets. 2K S ports ha s s ecu red a multi-yea r lic ense to devel op the online s imula tion ga me, which will inc lude a ll of the N B A tea ms , a s well a s c urrent a nd retired N B A pla yers . China experienc ed signific a nt online ga ming growth in 2008 a nd genera ted $2. 75 billion in revenue-a 61% inc rea s e from the prior yea r.

W o oz yFly, Inc . (OTC BB :WZYF )

W oozy Fly I nc. Triggered R epa y ment O bliga tions of its S ecu red C onvertible N otes Due June 30, 2011

W oozyF ly I nc. a nnounc ed tha t the filing of the C ha pter 11 C a se c onstituted a n ev ent of defa ult or otherwis e triggered repa yment obliga tions under the C ompa ny's 6% S ecured C onv erti ble N otes due J une 30, 2011. A s a res ult, a ll indebtednes s outs ta nding under thes e fa c ilities a nd the notes beca me a utoma tic a lly due a nd pa y a ble, s ubject to a n a utoma tic s ta y of a ny a ction to collec t, a ss ert, or rec over a c la im a ga ins t the Compa ny a nd the a pplica tion of a pplica ble ba nk ruptc y la w.

is eemedia Inc . (T S XV:IE E )

G C -G loba l Ca pita l C orp. a nd I seemedia I nc . E nter into $1,000, 000 L oa n Agreement

B eyond Co mmerc e, Inc . (OT CB B: B YOC)

B eyond C ommerce, Inc . Announc es L oca l AdL ink's E xpa ns ion into Austra lia

G C -G loba l C a pita l C orp. a nd iseemedia Inc . a nnounc ed the c ompletion of a sec ured loa n in the princ ipa l a mount of $1, 000,000. The twelve month s ec ured L oa n bea rs interest a t 12% per a nnum, pa ya ble monthly . As c onsidera tion for providing the L oa n, G loba l C a pita l will be iss ued 1, 500, 000 c ommon sha res of iseemedia a t a deemed price of $0. 09 per sha re. B eyond C ommerce, I nc . a nnounced the P re-L a unc h of L oca lAdL ink into the Aus tra lia n ma rk et. The Aus tra lia n ma rket pres ents a luc ra tiv e expa ns ion opportunity for L oca lAdL ink . L oc a lAdL ink is an online a dvertising serv ice tha t ena bles loc a l bus ines ses to rea c h loca l cus tomers . The cus tomer fa c ing W eb s ite L oc a lAdL ink. com is a loca l sea rc h directory a nd a c ts a s the c entra l hub for the L oca lAdLin k tec hnology. When a c ustomer v isits L oc a lAdL ink .c om, the proprieta ry geo-ta rgeting technology identifies their loc a tion a nd s erves up loc a l bus ines ses i n their zip code. A c ustomer c a n perform a dditiona l s ea rc hes for loc a l bus iness es a nd servic es a cros s a complete s election of ca tegories a nd get the informa tion they require.

IAC /InterAc tiveC orp. (Nas daqG S : IAC I)

IAC /InterActiveC orp. Appoints R ic ha rd F. Z a nnino to the B oa rd of Direc tors a nd to the Audit Committee

E ffectiv e J une 24, 2009, R ic ha rd F . Z a nnino, wa s elec ted to the B oa rd of D irectors of I AC /I nterAc tiv eCorp. a nd a ppointed to the Audit Committee of I AC 's B oa rd of D irectors . Mr. Z a nnino is a globa l media a nd reta il exec utive a nd a dv isor.

U nis erve C ommu nic ations C orp. (T S XV:U S S )

Unis erve C ommunic a tions C orp. Announc es Ma na gement C ha nges

Unis erve Communica tions C orp. a nnounced tha t Mic ha el S chmidt ha s been a ppointed a s P res ident of the c ompa ny. P rior to re-joining Unis erve, from his prev ious role a s V P , M a rketing a nd S a les , Mr. S chmidt overs a w the s a les a nd ma rk eting function for a s ucc es sful telec ommunic a ti ons compa ny . The compa ny a ls o a nnounc ed the a ddition of B ruc e S a nderson, V ic e P resident P roduct D evelopment, to its ma na gement tea m. Mr. S a nders on will be res ponsible for dev eloping a suite of products to meet the needs of the sma ll a nd medium s iz ed busines s c ustomer.

A irMedia G rou p Inc . (N as daqG M:AMCN ); S o hu.c om Inc . (N as daqG S :S OH U)

S ohu.c om N ot B uy ing AirM edia G roup

S ohu.c om I nc. does not pla n to buy AirMedia G roup I nc ., S ohu's s pok esma n told Interfa x on J une 26, 2009. " W e ha v e no pla n to a cquire outdoor a dvertising c ompa nies , inc luding A irMedia , a nd we ha ve no idea of where the rumor c a me from," L iu Xi nzhi, S ohu's s pokes ma n, sa id. C hines e W eb site T ec hW eb.c om. c n reported on Ju ne 25 tha t S o hu is pla nning to a c quire AirM edia , c iting a n a nony mous inves tment banker a s a sourc e.

S pec trumD NA, Inc . (OTC BB :S P XA)

S pec trumDN A, I nc. Announc es B oa rd C ha nges

O n J une 22, 2009, Ja mes C . Ac kerly s ubmitted to the boa rd of direc tors of S pec trumDN A, I nc. a nd the c ompa ny a cc epted, M r. Ac kerly 's resigna tion from the boa rd of direc tors effective immedia tely. O n J une 23, 2009, the boa rd of directors a ppointed J eff Nola n to serv e a s a member of the c ompa ny 's boa rd of direc tors, effec tive June 23, 2009. N ola n will prov ide c ons ulting serv ic es to the c ompa ny in rela tion to the opera tions of the compa ny , its s tra tegic pla nning, ma rk eting, a dvertising a nd busines s devel opment, and suc h other a rea s a s the pa rties ma y a gree from time to time.

DADA S pA (C M:DA); F ueps S .p. A. ; R CS DAD A S pA (C M: D A) s igned a n a greement to a c quire a Digital 51% sta ke in F ueps S . p.A . from R C S D igita l fo r €1. 4 million.

DAD A S pA (C M: D A) s igned a n a greement to ac quire a 51% sta ke in Fueps S . p. A. from R C S D igita l for €1. 4 million on J une 26, 2009. Under the terms , €1.4 million will be pa id in 8 qua rterly deferred insta llments . For the y ea r ending 2008, F ueps recorded revenues of a pproxima tely €0. 64 million and a nega tive E B I TD A of €0. 75 million. The dea l is expected to be c ompleted within the next one or two months .

MOK O.mobi Limited (AS X:MKB )

MO K O . mobi L imited L a unc hes on S econd I ndia n C arrier MO K O . mo bi L imited ha s la unc hed on I dea C ellula r I ndia a nd ha s bec ome the s ec ond I ndia n c a rrier la unch for MO K O .mobi this month. MO K O . mo bi is loc a lis ed for an Ind ia n a udienc e a nd will be developed to incl ude c omplimenta ry content tha t the c a rrier is inv olved in, including Idea 's s pons orship of the M umba i I ndia ns IP L c rick et tea m. T he Idea vers ion of MO K O . mobi is ba s ed on a user-pa y s subs c ription a nd premium a c tiv ity busines s model, where MO K O . mobi is pa id a sha re of a ll revenues from the mobile opera tor. T he la unch includes a free tria l period a nd rev enues a re ex pected to begin during the s econd qua rter of the new fina ncia l y ea r.

L ingo Media C orpo ration (TS XV: L M)

L ingo M edia C orpora tion, Annua l G en era l M eeting, J un 29, 2009

Figure 15. Key Developments Source. Capital IQ

L ingo M edia C orpora tion, Annua l G enera l Meeting, J un 29, 2009 L oc a tion: T oronto, O nta rio, C a na da .

Page 13 VALUATION MMOG companies lead market-cap charts: Eleven companies in our Web 2.0 universe top US$1 billion in market capitalization (Figure 16). Fifty-seven of the 90 companies have market caps under US$100 million, with 26 under US$10 million. Online gaming companies dominate the top of the list.

Market C ap (US D m) Tencent Holdings Ltd. Neteas e.com Inc. S handa Interactive S ohu.c om Inc. IA C/InterA ctiveCorp. Changy ou.com Limited Open Tex t Corp. G iant Interactive G roup, Inc. Modern Times G roup Mtg A B G ree, Inc. Perf ec t World Co. , Ltd. Chines e G amer International V alueClick Inc. Mix i, Inc. K ings of t Co. Ltd. United Online Inc. S hutterf ly , Inc. NetDragon WebS of t, Inc. G igaMedia Ltd. S K Communications Co. , Ltd. G ungHo Online Entertainment, The9 Limited G amania Digital Entertainment NEOWIZ G ames Corporation XING A G Openw ave S y s tems Inc. CDC Corp. A ctoz S of t Co. , Ltd. DA DA S pA OA O R B C Inf ormation S y s tems G ameOn Co Ltd. Tree.Com, Inc. Y edangOnline Corp. My riad G roup A G Cy berplex Inc. K A B Dis tribution Inc. HanbitS of t, Inc. J umpTV Inc. TheS treet. c om, Inc . DigitalTow n, Inc. S park Netw orks , Inc. G eoS entric Oy j Ngi G roup Inc. Eolith Co. Ltd. Webz en Inc. A Q Interactive, Inc. Fluid Mus ic Canada, Inc. NeXplore Corporation Frogs ter Interactive Pictures Northgate Technologies Limited G ravity Co., Ltd S oc ialw is e, Inc . B ey ond Commerce, Inc. Y nk K orea Inc. DXN Holdings B hd Wiz z ard S of tw are Corporation Dolphin Digital Media, Inc. B roadWebA s ia Inc. LookS mart, Ltd. J umbuck Entertainment Pty Ltd. IA S Energy , Inc. UOMO Media, Inc Lingo Media Corporation A cceleriz e New Media, Inc. S pectrumDNA , Inc. V OIS , Inc. Quepas a Corp. Worlds .com Inc. Magnitude Inf ormation S y s tems MOK O.mobi Limited S NA P Interactive, Inc. B right Things plc Ex tens ions , Inc. CornerWorld Corporation is eemedia Inc. B etaw ave Corporation DigitalPos t Interactive, Inc. LiveWorld Inc. B igs tring Corp. Unis erve Communications Corp. A s s oc iated Media Holdings Inc. Wy nds torm Corporation The Parent Company ZipLocal Inc. China G atew ay Corporation Financial Media G roup, Inc. Total S port Online A S S NM G lobal Holdings Dibz International, Inc. S ocial Media V enures , Inc.

540. 8 372.8 343.1 326. 0 321.2 286. 8 285.1 267.7 263. 9 221. 3 200. 8 164. 4 160. 4 143. 5 124.8 108.3 104. 2 103. 0 98.0 92. 3 76. 2 75. 8 72.7 66. 1 55.5 50. 8 50. 5 46.3 44.7 41. 0 40. 4 35. 8 34.0 32.7 30.5 30.3 29.5 29.3 28. 4 25. 1 24. 4 24. 3 19.5 19.5 15. 5 14. 0 12. 9 12. 2 11. 1 9. 7 8. 7 8. 6 6. 3 5. 5 5. 2 4. 9 4. 5 4. 4 3. 9 3. 5 2. 9 2. 6 1. 9 1. 7 1. 7 0. 9 0. 7 0. 4 0. 3 0. 3 0. 2 0. 1 0. 0 0. 0 0. 0 0

500

1073.3 993. 2 944. 4 796.5

1, 000

1572. 3 1485. 8

1,500

1931. 3 1894. 9 1850.0

2,000

3968.7

2520. 4 2401.1 2399. 7

2,500

3, 000

3, 500

4, 000

Page 14 Figure 16. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (up from 4.5x last week) (Figure 17). However, this is skewed by Gree (3633-TSE) at 48.6x, Bigstring Corp (BSGC:OTCBB) at 41.6x and Dolphin Digital (OTCBB:DPDM) at 36.7x. The median is only 1.1x. Note that we exclude multiples greater than 50x. Thirtytwo companies have multiples under 1.5x

T E V/L T M R evenue (x) 60.0

48.6

50.0

41.6 40.0 32. 7 30.0 20.8 19.20.0 2 18.0 16.1 12.6 9.69. 9 7.8 10.0 A verage, 5.3 5.65.85.86. 6 4.8 4.64.64. 7 3.94. 1 2.73. 23.23.53.5 1. 31.31.41.41.41. 51.51.81. 81.92.12.32.42. 52.6 0.10.20.20. 20.20.30. 30.40.40.50.50. 50.60.60. 70.80.91.01.01. 11.11.1 0.0

LiveWorld Inc. S handa Interactive E ntertainment AQ Interac tive, Inc. Unis erve C ommunications C orp. T he P arent C ompany Northgate T ec hnologies Limited P erfec t World C o., Ltd. IAC /InterActiveC orp. T ree.C om, Inc . C DC C orp. O penwave S y s tems Inc. DXN Holdings B hd G ameO n C o L td. ZipL oc al Inc. J umbuc k E ntertainment P ty L td. DADA S pA S park Network s , Inc. U nited O nline Inc . S NAP Interac tive, Inc . S NM G lobal Holdings HanbitS oft, Inc. K AB Dis tribution Inc. C y berplex Inc. NE O WIZ G ames C orporation G igaMedia L td. Modern T imes G roup Mtg AB S hutterfly , Inc. Ac toz S oft C o., Ltd. V alueC lick Inc. is eemedia Inc. S K C ommunic ations C o. , L td. G amania Digital E ntertainment C o., Y edangO nline C orp. NetDragon WebS oft, Inc. G ungHo O nline E ntertainment, Inc . Y nk K orea Inc. O pen T ex t C orp. My riad G roup AG XING AG E olith C o. L td. J umpT V Inc . MO K O .mobi Limited Ac c eleriz e New Media, Inc. C ornerWorld C orporation T otal S port O nline AS Wiz z ard S oftware C orporation S ohu. com Inc. B ey ond C ommerc e, Inc . F luid Mus ic C anada, Inc . K ings oft C o. Ltd. DigitalP os t Interac tive, Inc . Mix i, Inc. G eoS entric O y j F rogs ter Interactive P ic tures AG C hangy ou.c om Limited L ingo Media C orporation B right T hings plc C hines e G amer International As s oc iated Media Holdings Inc. T enc ent Holdings L td. UO MO Media, Inc Dolphin Digital Media, Inc . B igs tring C orp. G ree, Inc.

20.0

Figure 17. TEV/Revenue Ranking Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed or domiciled. Figure 18 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (17), trading at an average multiple of 14.3x (down from 14.7x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 5.7x revenue (vs. 5.7x last week) (Figure 19). Ten of the companies are Canadian (average 4.9x revenue). Average TEV/LTM Revenue - By Country

1 17 5 2 3 1 2 1 4 12 4 2 1 1 2 14 7 1 1 1 1 5 1

Figures 18 & 19. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ

4.6

1

India

9

Russia

2

0.5 0.3 0.0 Hong Kong

1

0.8 0.5 Italy

Australia

1

South

Switzerland

10 38 10

Sweden

Canada

2

Norway

China

3

United

1

Taiwan

6

Germany

1

Japan

2.7 2.1 1.9 1.4 Finland

# Companies

7.1 6.4 6.2 5.7 4.9

Malaysia

7.8

8.0 6.0 4.0 2.0 0.0 United

(x)

18.0 16.1 16.0 14.0 12.0 9.7 10.0

RTS

BSE

NasdaqGM

CM

KLSE

OM

KOSE

OSE

ASX NasdaqGS

SWX

TSX

AMEX

OTCPK

OTCNO TSXV

HLSE

XTRA

SEHK

TSE

GTSM

AIM # Companies

OTCBB

(x)

Average TEV/LTM Revenue - By Exchange 18.0 16.1 16.0 14.3 14.0 12.0 11.2 10.0 10.0 9.4 7.8 8.0 6.0 6.4 4.6 3.83.4 4.0 2.9 2.8 2.7 2.4 2.1 1.9 1.4 2.0 2.0 0.8 0.5 0.3 0.2 0.0 0.0

1

1

1

1

1

Page 15

TEV/EBITDA (LTM) averages 9.9x: The average multiple for the 36 companies with positive EBITDA (and multiples under 100x) is 9.9x LTM EBITDA (vs. 9.6x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 41.6x multiple (Figure 20). Seventeen of the companies have EBITDA multiples under 7x. The median multiple is 8.7x (vs. 8.7x last week). T E V/L T M E B IT DA (x) 45. 0

41. 6

40. 0 35. 0

32. 1

30. 0

27. 5 23. 5

25. 0 18. 5

20. 0

16. 4

T enc ent H oldings Ltd.

C hines e G amer International

S K C ommunic ations C o. , Ltd.

Mix i, Inc .

Y nk K orea Inc .

C hangy ou. com Limited

K ings oft C o. Ltd.

13. 4

G ungHo O nline E ntertainment, Inc.

C y berplex Inc .

IAC /InterAc tiveC orp.

S hutterfly , Inc .

G amania Digital E ntertainment C o. , L td.

S ohu. com Inc .

XING AG

9.6

12.1 12.2 10.8 11.7 9.8 10. 0 10. 2 10.7

O pen T ex t C orp.

9.0

K AB Dis tribution Inc .

Ac toz S oft C o., L td.

8.4

Modern T imes G roup Mtg AB

6. 7

NetDragon WebS oft, Inc .

5. 8 5. 9

C DC C orp.

4. 9

5. 6

DADA S pA

4. 7

United O nline Inc .

4. 4

NE O WIZ G ames C orporation

T heS treet. com, Inc .

3. 8

S park Network s , Inc .

Ngi G roup Inc .

0. 0

3. 7

DXN H oldings B hd

P erfect World C o., Ltd.

2. 8

S NAP Interactive, Inc .

0. 5

2. 0 2. 6

AQ Interac tive, Inc .

0. 5

0. 8

G ameO n C o Ltd.

0. 3 S handa Interac tive E ntertainment Ltd.

5. 0

J umbuck E ntertainment P ty L td.

10. 0

V alueC lick Inc .

A verage, 9. 9

Y edangO nline C orp.

15. 0

14. 3

Figure 20. TEV/EBITDA Ranking Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 21 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (17), trading at an average multiple of 3.7x. On a geographic basis, the United States has the most companies (38), trading at an average of 6.4x EBITDA (Figure 22). Ten of the companies are Canadian (average 10.6x EBITDA). Average TEV/LTM EBITDA - By Exchange

Average TEV/LTM EBITDA - By Country

25.0 21.9

25.0

20.0

20.0

21.9

20.6

OTCBB

ASX

NasdaqGM

RTS

SWX

1

2

1

17

2

5

1

1

# Companies

3

9

10

10

2

1

Switzerland

KLSE

5

Russia

AMEX

14

Australia

CM

1

0.0

Malaysia

TSE

2

0.2

Italy

NasdaqGS

4

2.0 Hong Kong

OM

1

0.0 Japan

XTRA

7

3.8

United States

TSX

3

6.4 5.8 5.6

Sweden

OSE

2

7.6

5.0

Germany

KOSE

# Companies

0.2 0.0

SEHK

0.0

4.4 3.8 3.7 2.0 0.8

GTSM

5.0

10.6 10.2 9.0

China

6.1 5.6

12.8 10.0

Canada

10.910.2 9.0 8.0

South Korea

10.0

14.5

15.0

Taiwan

(x)

14.5 13.4

(x)

15.0

6

38

1

1

1

2

1

1

Figures 21 & 22. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ

P/E (LTM) averages 17.9x: The average multiple for the 29 companies with positive earnings (and multiples under 100x) is 17.9x LTM EPS (from 17.0x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 52.8x multiple (Figure 23). Ten of the companies have P/E multiples under 10x. The median is just 14.2x.

Page 16

P /E L T M (x) 60.0 52.8 47.0

50.0 41.0 41.5 40.0 30.1 28.5 29.5

30.0

24.2 24.7 20.4 20.9

T encent H oldings Ltd.

Mix i, Inc.

C hines e G amer International

Worlds .com Inc.

O pen T ex t C orp.

NE O WIZ G ames C orporation

G amania Digital E ntertainment C o., Ltd.

Actoz S oft C o., Ltd.

DADA S pA

XING AG

IAC /InterActiveC orp.

17.9

K ings oft C o. Ltd.

C hangy ou.com Limited

15.6 16.4

S park Network s , Inc.

14.2

S ohu.com Inc.

G igaMedia Ltd.

G ameO n C o Ltd.

NetDragon WebS oft, Inc.

9.2

12.7 12.9 11.2 12.3

Y edangO nline C orp.

7.4

C y berplex Inc.

6.2

S NAP Interactive, Inc.

G iant Interactive G roup, Inc.

0.0

5.5

J umbuck E ntertainment P ty Ltd.

3.1

DXN H oldings B hd

2.7

4.2

S handa Interactive E ntertainment Ltd.

2.5

Neteas e.com Inc.

2.0

P erfect World C o., Ltd.

10.0

Modern T imes G roup Mtg AB

A verage, 17.9

20.0

Figure 23. P/E Ranking Source. Capital IQ

P/E (LTM) by country/exchange: Figure 24 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (17), trading at an average multiple of 24.2x. On a geographic basis, the United States has the most companies (38), trading at an average of 21.1x earnings (Figure 25). Ten of the companies are Canadian (average 19.7x EPS). Average P/E - By Exchange 30.0

21.8 20.9

12.5

TSE

SEHK

OTCBB

CM

KOSE

XTRA

AMEX

NasdaqGS

TSX

ASX

OM

KLSE

NYSE

SWX

2

5

3

17

1

7

2

2

14

4

2

1

1

1

1

5.5

4.2

0.0

# Companies

0.0

6

3

Switzerland

GTSM

0.0

Figures 24 & 25. P/E Ranking (Exchange, Country) Source. Capital IQ

6.2

5.0

2.0

Malaysia

4.2

Sweden

5.5

Australia

6.2

5.0

# Companies

19.7

10.0

China

10.0

11.5 9.2

21.1 20.9

15.0

Canada

15.6

24.2 21.8

Germany

15.0

27.7

20.0

United States

20.0

25.0

24.2 24.2

Italy

(x)

27.7

South Korea

29.9

25.0

Taiwan

30.0

0.0

Average P/E - By Country 29.9

Japan

35.0

35.0

35.0

(x)

40.0

1

9

38

2

10

10

2

1

1

1

Page 17

C omparable C ompany Analys is > W eb 2 .0 P ric e P erforman c e C ompa ny Na me

C ur rency

T ic ker

E x change

US D Ma rket C ap ($m)

Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C D C C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D AD A S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid M us ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K A B D is tribution Inc. K ings oft Co. Ltd. Lingo M edia Corporation Live World Inc. LookS mart, Ltd. M agnitude Information S ys tems Inc. M ixi, Inc. M ode rn Times G roup Mtg AB M OK O.mobi L imited M yriad G roup AG N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W izza rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc.

US D KR W JPY US D US D US D US D GBP US D US D US D US D TWD US D C AD E UR MY R US D US D US D US D KR W US D US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D C AD AU D C AD C AD HKD C AD US D US D US D JPY SE K AU D C HF KR W HKD US D US D JPY IN R US D US D US D US D US D US D US D KR W US D US D US D US D US D US D US D HKD US D US D US D N OK US D C AD US D US D US D US D US D US D US D US D E UR KR W KR W C AD

A CL Z A 052 790 3 838 A S MH B S GC B W AV B Y OC A IM:B G T B W BA C H IN .A C Y OU C GW Y G TS M:3 083 CWR L T S X:CX C M:DA D XN D IB Z DGL P DGT W DPDM A 041 060 E XT I F NGP T S X:F MN FR G 6 180 3 812 G E O1V GA G IG M G RV Y T S E :36 32 3 765 A 047 080 I ACI I AS C .A IEE A S X:J M B T S X:J T V T S X:K AB 3 888 T S XV :LM L VW D L OOK M AG Y 2 121 MT G B MKB MYR N A 095 660 7 77 NT E S N XP C 2 497 5 900 57 O TE X O PW V P W RD Q PS A R BC I S ND A S F LY A 066 270 S T VI S NMN S MV I S CL W S OH U L OV S P XA 7 00 K IDS .Q NC T Y T S CM T OS O TR EE T S XV :U S S UNT D U OM O V CL K V OIS W ZE N W ZE W DDD W YND O 1B C A 052 770 A 023 770 T S XV :ZIP

OT C B B KO SE TSE OT C P K OT C B B OT C B B OT C B B AI M OT C P K N as da qG S N as da qG S OT C P K GT S M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B KO SE OT C P K OT C B B TSX XT R A GT S M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E KO SE N as da qG S OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX KO SE S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S OT C P K R TS N as da qG S N as da qG S KO SE OT C B B OT C P K OT C P K OT C B B N as da qG S AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C N O N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C P K XT R A KO SE KO SE T S XV

1 1.1 16 0.4 4 0.4 0 .9 1 .7 2 .9 2 9.3 4 .5 1 9.5 16 4.4 2,3 99. 7 0 .3 1,0 73. 3 3 .9 9 2.3 14 3.5 2 5.1 0 .0 2 .6 5 5.5 2 4.3 4 4.7 4 .4 0 .2 3 5.8 3 2.7 26 7.7 10 8.3 5 0.5 1,8 94. 9 32 6.0 3 0.3 1,5 72. 3 28 6.8 7 5.8 2,4 01. 1 1 4.0 3 .5 1 5.5 7 2.7 7 6.2 79 6.5 1 2.2 1 .9 1 9.5 5 .5 94 4.4 1,8 50. 0 5 .2 9 8.0 26 3.9 34 3.1 4,5 40. 6 3 4.0 4 6.3 3 0.5 1,9 31. 3 20 0.8 1,4 85. 8 8 .6 12 4.8 3,9 68. 7 37 2.8 32 1.2 4 .9 0 .0 0 .0 2 9.5 2,5 20. 4 5 0.8 9 .7 22, 011 .2 0 .4 28 5.1 6 6.1 0 .1 10 4.2 1 .7 54 0.8 1 2.9 99 3.2 8 .7 4 1.0 2 4.4 6 .3 0 .7 22 1.3 10 3.0 2 8.4 0 .3

H igh Low A vera ge M edian

Figure 26. Price Performance Source. Capital IQ

622.7

C urrent Pric e 0.4 0 2 4,00 0.0 0 7 1,20 0.0 0 0.0 2 0.0 3 0.1 0 0.6 5 0.0 1 0.2 3 1.5 5 4 3.6 3 0.0 2 42 0.0 0 0.0 6 1.6 5 6.3 0 0.3 9 0.0 0 0.0 4 2.0 5 0.4 7 79 0.0 0 0.1 0 0.0 0 0.7 9 9.9 0 5 8.0 0 10 7,40 0.0 0 0.0 4 8.3 9 5.9 8 1.0 9 6,75 0.0 0 24 0,10 0.0 0 4,43 0.0 0 1 5.9 1 0.2 0 0.0 8 0.3 9 0.7 4 0.6 3 5.6 9 1.1 0 0.0 6 1.1 4 0.0 1 58 9,00 0.0 0 21 7.0 0 0.0 8 4.9 9 3 2,10 0.0 0 5.0 3 3 6.9 0 0.6 1 3 5,90 0.0 0 4 2.0 5 3 6.7 0 2.4 1 3 0.5 5 0.6 8 0.9 0 5 7.2 0 1 4.8 1 9,81 0.0 0 0.4 5 0.0 1 0.0 1 0.6 8 6 5.8 7 2.4 7 0.2 0 9 4.5 5 0.0 2 1 0.6 3 2.1 6 0.0 3 9.6 5 0.0 8 6.4 7 0.1 5 1 1.4 2 1.0 5 3.4 6 0.5 1 0.1 2 0.0 4 2 9.8 8 8,40 0.0 0 6,80 0.0 0 0.0 1

1 Wk

1 Mth

3 Mth

6 Mth

1 Yr

52 We ek

14.3 % -14. 3% -5.3 % 1 233 .3% 10.3 % 25.0 % -20. 7% -8.3 % -22. 8% 11.5 % 23.3 % -25. 0% 23.7 % -14. 3% -0.6 % 7.7 % 1.3 % -90. 0% 25.0 % -17. 7% -6.0 % -3.7 % -33. 3% -10. 0% 25.4 % 24.5 % 7.4 % -7.7 % 0.0 % 4.9 % 7.4 % -1.8 % -5.9 % 2.6 % -3.7 % -0.3 % -13. 0% 33.3 % -7.1 % 15.6 % 0.0 % 9.4 % 0.0 % -40. 0% -13. 6% 0.0 % 12.6 % 13.3 % 15.4 % -0.2 % -6.3 % -2.5 % 9.2 % -12. 9% -2.6 % 12.7 % 4.9 % 18.7 % 5.6 % 0.0 % -10. 0% 10.4 % 13.6 % -15. 8% -30. 8% 3 66. 7% 0.0 % -2.9 % 7.6 % 3.8 % -13. 0% 6.4 % -40. 0% 0.9 % -2.3 % 0.0 % 7.6 % 14.3 % 7.7 % -4.5 % 8.1 % 2 00. 0% -7.5 % -20. 3% 20.0 % 14.3 % -0.4 % -4.7 % 7.1 % 0.0 %

0.0% 4.8% -8.7 % 12 33. 3% 4 5.5 % 0.0% -26. 1% -16. 7% -22. 8% -6.1 % 3 2.6 % 6 50.0 % 1 1.6 % -33. 3% 1.9% 7.1% 1.3% -90. 0% 7 5.0 % 5 7.7 % -21. 7% 6.8% -33. 3% -32. 5% 5.3% 3 2.0 % -1.0 % -5.5 % -20. 0% 1 2.0 % -1.2 % -7.6 % 1 4.8 % 1 3.8 % -12. 6% -1.8 % -13. 0% -11. 1% -13. 3% -8.6 % 5.0% 1 1.1 % 4.8% -25. 0% -11. 6% 2 0.0 % 2 9.7 % -2.3 % 7.1% -8.4 % -13. 4% -6.0 % 6.7% -12. 9% 5.1% -6.2 % 4.2% 3 6.9 % 4 4.2 % -33. 3% -28. 0% -0.7 % 3.6% -15. 1% -43. 0% 1 80.0 % 0.0% -2.9 % 4.5% 7.9% -45. 9% 9.4% 0.0% 1 6.3 % 1 1.9 % 0.0% -17. 0% 6 0.0 % 1.1% -28. 2% 3.3% 2 00.0 % -25. 9% -5.6 % -20. 0% -92. 2% -10. 8% -17. 2% -8.1 % 0.0%

73 .9% 11 9.2% 81 .2% 132 8.6 % 11 3.3% -4 2.9% 14 .0% 10 .0% -5 4.9% 40 .9% NM 65 0.0% 13 4.0% -5 7.1% 96 .4% 31 .5% 30 .5% -9 0.0% 75 .0% -1 8.0% -2 4.8% 53 .4% -3 3.3% -7 0.0% 97 .5% 49 .8% 74 .2% 16 .4% 33 .3% 23 .4% 8 .3% 70 .3% 24 .3% 89 .2% 37 .2% 4 .5% 34 4.4% -1 1.1% -2 2.0% 19 .4% 46 .5% 76 .2% 22 .2% -5 3.8% 11 .8% -2 0.0% 58 .8% 54 .7% 50 .0% 24 .8% 39 .6% 22 .1% 37 .4% 1 .7% 68 .5% 23 .7% 6 .6% 14 8.5% 11 7.4% -3 4.6% 10 4.5% 44 .7% 58 .1% 30 .6% -4 0.0% 60 0.0% -9 9.2% 70 .0% 59 .5% 9 .8% 5 .3% 64 .7% -2 5.0% -2 1.2% 5 .9% -2 5.0% 11 2.1% 10 0.0% 45 .1% 87 .5% 34 .2% 35 6.5% 87 .0% 8 .5% -3 3.3% -6 6.7% 3 .4% 0 .5% 82 .8% -6 6.7%

14 .3% 13 5.3% 14 2.2% 56 6.7% 11 3.3% -5 4.5 % -2 7.8 % 10 .0% -7 7.2 % 34 .8% NM 65 0.0% 34 4.4% -8 7.2 % 38 5.3% -6.9% 10 .0% -9 8.0 % 11 8.8% -2 4.1 % -4 1.3 % 41 .1% -4.8% -9 3.3 % 22 9.2% 67 .8% 16 6.1% -1 2.4 % 33 .3% 29 .3% 6 .2% 10 5.7% 25 .5% 13 8.4% 30 .3% 1 .1% 56 6.7% 23 .1% 0 .0% 76 .2% 80 .0% 12 0.5% -7.6% 10 0.0% -2 5.9 % -2 0.0 % 7 .7% 28 .8% 25 .0% -1 3.2 % 22 3.4% 73 .4% 67 .0% -3 9.0 % -2 9.6 % -3 4.0 % 21 .8% 27 0.8% 77 .1% -5 9.3 % 80 .0% 76 .8% 11 1.9% 80 .0% -3 5.7 % -3 0.0 % -9 9.1 % -1 9.0 % 39 .1% -3.9% 33 .3% 89 .1% -7 0.0 % -2 0.2 % -2 5.5 % -4 0.0 % 34 8.8% 10 0.0% 6 .6% 15 0.0% 67 .0% 16 2.5% 28 8.8% -4 0.7 % -3 6.8 % -6 6.7 % 10 .7% 36 .4% 51 .1% 0 .0%

-46 .7% 2 12. 5% -46 .1% NM -77 .1% -70 .6% -80 .1% -41 .5% -84 .7% -33 .5% NM -50 .0% 3 80. 0% -85 .4% 1 50. 0% -46 .6% -1. 3% -98 .0% -68 .2% -40 .6% NM 7.5 % NM -99 .7% -56 .1% 1 03. 3% 94.6 % -17 .4% -33 .3% -24 .6% -44 .2% -5. 2% NM 5.8 % 50.4 % -56 .0% 11.7 % -66 .7% -36 .1% -7. 5% -26 .7% 51.3 % -39 .9% -78 .6% -72 .0% -53 .1% -14 .9% -35 .2% 50.0 % -50 .1% 1 67. 5% -48 .7% 73.5 % -23 .8% -66 .1% -86 .0% 19.5 % 97.5 % 16.3 % -69 .8% -90 .0% 1 30. 0% 28.0 % -25 .7% -34 .8% -99 .5% NM -66 .8% -10 .3% -39 .9% NM 57.6 % -99 .0% -54 .7% -66 .5% -70 .0% NM -70 .4% -35 .4% -58 .3% -23 .9% -78 .1% 14.9 % -67 .9% -70 .0% -88 .6% -6. 7% -28 .5% -43 .3% -95 .5%

-46. 7% -33. 3% -59. 3% -60. 0% -84. 0% -75. 0% -80. 3% -45. 0% -92. 1% -51. 1% -5.0 % -57. 1% -6.7 % -92. 4% -17. 1% -51. 6% -18. 1% -98. 0% -79. 3% -66. 4% -58. 4% -31. 9% -90. 1% -99. 7% -60. 5% 3.1 % -7.5 % -34. 3% -42. 9% -31. 5% -55. 6% -45. 2% -11. 9% -14. 2% -33. 3% -68. 5% -42. 9% -74. 2% -37. 1% -42. 2% -33. 7% -4.7 % -43. 0% -81. 3% -72. 9% -60. 0% -36. 0% -44. 4% -25. 0% -51. 3% -23. 6% -52. 5% -4.7 % -57. 9% -71. 8% -88. 8% -6.1 % -2.4 % -9.9 % -80. 3% -90. 1% -12. 0% -2.9 % -44. 1% -58. 3% -99. 6% -99. 8% -76. 0% -25. 1% -44. 6% -66. 7% -1.3 % -99. 5% -62. 7% -70. 6% -70. 0% -26. 2% -73. 3% -47. 2% -85. 8% -27. 5% -81. 3% -26. 1% -74. 5% -70. 0% -93. 3% -17. 0% -32. 3% -51. 6% -95. 7%

1 233 .3% -90. 0% 19.4% 0.0 %

12 33. 3% -92. 2% 22.4% -0.4 %

132 8.6 % -9 9.2% 63.1% 31 .5%

65 0.0% -9 9.1 % 63.5% 25 .5%

3 80. 0% -99 .7% -19.3% -40 .2%

3.1 % -99. 8% -50.8% -51. 5%

Page 18

C omparable C ompany A nalys is > W eb 2.0 V aluatio n Multiples C om pany Nam e

S ec to r

Co untry

P rimary E xc h ange

Tic ker

Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D AD A S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid Mus ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K A B D is tribu tion Inc. K ings oft Co. Ltd. Lingo M edia Corporation Live World Inc. LookS mart, Ltd. Magnitu de Information S ys tems Inc. Mixi, Inc. Mode rn Times G rou p Mtg AB MOK O.mobi L imited Myriad G roup AG N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommu nications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W izza rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc.

D irect Marketing G aming G aming Mobile Ins ta nt M es s aging Me dia S ocia l Ne tworking S ocia l Ne tworking S ocia l Ne tworking G aming G aming Mobile G aming C ontent Advertis ing S ocia l Ne tworking S ocia l Ne tworking S N S A pps C ontent S ocia l Ne tworking S ocia l Ne tworking G aming C ontent D irect Marketing Me dia G aming G aming G aming Mobile G aming G aming G aming S ocia l Ne tworking Me dia G aming Me dia V ide o C ontent S ocia l Ne tworking V ide o C ontent G aming Le arning S ocia l Ne tworking D irect Marketing S ocia l Ne tworking S ocia l Ne tworking Me dia S ocia l Ne tworking Mobile G aming G aming G aming C ontent Me dia D irect Marketing C ollaboration Mobile G aming S ocia l Ne tworking Me dia G aming D igital Imaging S e arch D ating Me dia S ocia l Ne tworking S ocia l Ne tworking G aming S ocia l Ne tworking Me dia P orta l Me dia G aming Me dia Me dia P orta l S ocia l Ne tworking Me dia Me dia Me dia S ocia l Ne tworking G aming P odcas ting C ontent C ontent S ocia l Ne tworking G aming G aming D irectory

U nite d S tates S outh K ore a J a pan U nite d S tates U nite d S tates U nite d S tates U nite d S tates U nite d K ingdom U nite d S tates H ong K ong C hina U nite d S tates T a iwan U nite d S tates C anada Italy Malays ia U nite d S tates U nite d S tates U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany T a iwan J a pan F inland C hina T a iwan S outh K ore a J a pan J a pan S outh K ore a U nite d S tates C anada C anada A us tralia C anada C anada C hina C anada U nite d S tates U nite d S tates U nite d S tates J a pan S we den A us tralia S witz erland S outh K ore a C hina C hina U nite d S tates J a pan India C anada U nite d S tates C hina U nite d S tates R us s ia C hina U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates U nite d S tates C hina U nite d S tates U nite d S tates C hina U nite d S tates C hina U nite d S tates N orway U nite d S tates C anada U nite d S tates C anada U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany S outh K ore a S outh K ore a C anada

OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S N as da qG S OT C P K GTSM OT C B B TSX CM KLSE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GTSM TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B T S XV AS X TSX TSX S EHK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX K OS E S EHK N as da qG S OT C P K TSE BSE N as da qG S N as da qG S N as da qG S OT C P K R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K OT C B B N as da qG S AME X OT C B B S EHK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C P K XT R A K OS E K OS E T S XV

AC LZ A 052 790 3 838 AS MH BS G C B WA V BYO C AIM :B G T B WB A C HIN .A CY OU CG W Y G T S M:308 3 CWR L T S X:C X CM:DA D XN D IB Z DGL P D G TW DP DM A 041 060 E XT I F NGP T S X:F MN FRG 6 180 3 812 G E O1V GA G IG M GR VY T S E :3 632 3 765 A 047 080 IAC I IA S C .A IE E AS X:J MB T S X:J T V TS X:K AB 3 888 TS XV :LM LV W D L OOK MAG Y 2 121 MT G B MK B MY R N A 095 660 777 NT E S N XP C 2 497 59 005 7 O TE X OP W V PW R D QP S A R B CI S NDA S FL Y A 066 270 S T VI S N MN S MV I S CL W S OH U L OV S P XA 700 K ID S .Q NC T Y TSCM T OS O TR E E T S XV :U S S U N TD U OMO V C LK V OIS W ZE N W ZE W DD D W YND O 1B C A 052 770 A 023 770 T S XV :ZIP

H igh Low A vera ge Median

Figure 27. Valuation Comparison Source. Capital IQ

US D Market Cap ($m)

TE V/LT M R evenue

TE V/ N TM R evenue

TE V/LT M E BITDA

TE V/N TM E BITDA

P /LT M E P S

P /NT M E PS

P /TangBV

11. 1 1 60. 4 40. 4 0. 9 1. 7 2. 9 29. 3 4. 5 19. 5 1 64. 4 2,3 99. 7 0. 3 1,0 73. 3 3. 9 92. 3 1 43. 5 25. 1 0. 0 2. 6 55. 5 24. 3 44. 7 4. 4 0. 2 35. 8 32. 7 2 67. 7 1 08. 3 50. 5 1,8 94. 9 3 26. 0 30. 3 1,5 72. 3 2 86. 8 75. 8 2,4 01. 1 14. 0 3. 5 15. 5 72. 7 76. 2 7 96. 5 12. 2 1. 9 19. 5 5. 5 9 44. 4 1,8 50. 0 5. 2 98. 0 2 63. 9 3 43. 1 4,5 40. 6 34. 0 46. 3 30. 5 1,9 31. 3 2 00. 8 1,4 85. 8 8. 6 1 24. 8 3,9 68. 7 3 72. 8 3 21. 2 4. 9 0. 0 0. 0 29. 5 2,5 20. 4 50. 8 9. 7 22,0 11. 2 0. 4 2 85. 1 66. 1 0. 1 1 04. 2 1. 7 5 40. 8 12. 9 9 93. 2 8. 7 41. 0 24. 4 6. 3 0. 7 2 21. 3 1 03. 0 28. 4 0. 3

3.9 x 1.5 x 0.2 x 19.2 x 41.6 x 4.8 x 16.1 x 0.5 x 9.9 x 0.0 x 18.0 x 4.1 x 1.3 x 0.8 x 0.5 x 5.8 x 32.7 x 3.2 x 5.6 x 9.6 x 1.9 x 0.6 x 7.8 x 1.4 x 48.6 x 2.4 x 1.1 x 0.4 x 1.8 x 0.7 x 3.5 x 1.1 x 5.8 x 12.6 x 0.1 x 6.6 x 1.4 x 3.5 x 2.7 x 1.3 x 2.3 x 0.1 x 0.3 x 2.6 x 0.5 x 0.3 x 0.0 x 0.2 x 1.4 x 1.8 x 1.0 x 1.1 x 0.0 x 4.7 x 0.9 x 20.0 x 0.2 x 0.0 x 4.6 x 0.4 x 0.2 x 1.0 x 20.8 x 1.5 x 4.6 x 3.2 x 2.1 x 2.5 x 0.6 x

0.5x 7.7x 0.9x 4.7x 1.3x 0.4x 1.1x 1.3x 2.4x 0.5x 1.3x 0.8x 4.1x 0.0x 0.4x 0.8x 1.6x -

6.7 x 2.8 x 5.8 x 16.4 x 32.1 x 12.2 x 5.6 x 3.8 x 11.7 x 2.6 x 13.4 x 12.1 x 2.0 x 9.6 x 14.3 x 18.5 x 9.0 x 4.9 x 5.9 x 0.5 x 10.0 x 0.5 x 0.2 x 0.3 x 10.8 x 27.5 x 3.7 x 10.7 x 4.4 x 41.6 x 0.8 x 4.7 x 8.4 x 10.2 x 9.8 x 23.5 x -

6.2x 8.0x 6.4x 3.3x 5.9x 1 0.9 x 8.7x 5.7x 2.6x 1.9x 8.3x 9.3x 5.0x 3.4x 6.5x -

24 .7x 16 .4x 41 .5x 9. 2x 24 .2x 4. 2x 28 .5x 12 .7x 2. 0x 12 .9x 20 .4x 6. 2x 17 .9x 47 .0x 5. 5x 29 .5x 12 .3x 2. 7x 30 .1x 2. 5x 3. 1x 7. 4x 14 .2x 15 .6x 52 .8x 0. 8x 41 .0x 20 .9x 11 .2x -

1 1.2 x 1 5.7 x 1 0.8 x 1 3.9 x 1 2.0 x 3 1.4 x 1 1.6 x 1 6.7 x 1 4.0 x 3 8.3 x 1 1.5 x 1 6.0 x 1 8.1 x 1 4.6 x 1 7.8 x 1 8.1 x -

2 .8x 0 .6x 0 .4x 1 4.9x 1 5.6x 9 .2x 0 .5x 4 .3x 3 .6x 4 .9x 3 .5x 1 .4x 8 .6x 0 .4x 2 .8x 1 9.6x 4 0.8x 2 .3x 1 .1x 3 .1x 1 .6x 4 .4x 4 .3x 1 2.8x 0 .8x 0 .7x 7 .0x 3 .9x 4 .4x 1 4.9x 1 .9x 0 .8x 1 .0x 2 .9x 1 .0x 1 .2x 2 .2x 2 .9x 3 8.3x 6 .8x 2 5.5x 2 2.1x 0 .1x 0 .9x 1 .4x 8 .1x 3 0.4x 0 .0x 7 .0x 3 .9x 1 .5x -

22,0 11. 2 0. 0 622. 7 40. 7

48.6 x 0.0 x 5.3x 1.8 x

7.7x 0.0x 1.8x 1.1x

41.6 x 0.2 x 9.9x 8.7 x

1 0.9 x 1.9x 6.1x 6.2x

52 .8x 0. 8x 17.9x 14 .2x

3 8.3 x 1 0.8 x 17.0x 1 5.1 x

4 0.8x 0 .0x 7.0x 3 .1x

Page 19

C omparable C ompany A nalys is > W eb 2.0 Su mmary b y C ountry C om pany Nam e

U S D Market Cap ($m)

U nited S ta tes C a na da

38 10

C hina U nited S ta tes

C hina

10

J a pa n

Avg US D Market C ap ($m) 40, 246.0 5, 076.1

China S weden

2, 998.5

Ta iwa n

U S D LT M T otal R ev ($m) 4,024. 6 1,850. 0 555. 7

U S D LT M To tal E B IT DA ($m) 3, 839. 0

C hina U nited S ta tes

3, 795. 5

C hina S weden

S weden

1, 741. 6

U nited S ta tes

E B IT DA % 1,773. 8

47. 9%

266. 8

C hina Aus tra l ia

245. 7

T a iwa n

36. 3% 31. 2%

37. 2%

S outh K orea

9

C a na da

2, 217.2

Ja pa n

499. 7

C a na da

970. 3

C a na da

193. 6

G erma ny

J a pa n

6

S weden

1, 850.0

Ca na da

221. 7

S outh K orea

657. 1

J a pa n

108. 2

J apa n

21. 9%

T a iwan

3

T a iwa n

1, 667.0

Hong K ong

164. 4

J a pa n

497. 1

S outh K orea

85. 0

S weden

15. 3%

A ustra lia

2

S outh K orea

1, 068.7

Ita ly

143. 5

H ong K ong

389. 9

T a iwa n

52. 4

I taly

14. 6%

G erma ny

2

G erma ny

254.0

United S ta tes

133. 6

T a iwa n

365. 6

I ta ly

34. 5

M a la ys ia

13. 7%

S witz erla nd

H ong K ong

R uss ia

30. 8 19. 8

R uss ia

R uss ia

236. 1 151. 8

H ong K ong

R us sia

127. 0 124. 8

I ta ly

I ta ly

164.4 143.5

G erma ny

H ong K ong

1 1

H ong K ong

13. 1% 7.9%

F inla nd

1

R uss ia

124.8

S outh K orea

118. 7

I ndia

116. 5

M a la ys ia

10. 7

S outh K orea

6.0%

I ta ly

1

S witz erla nd

98.0

S witzerla nd

98. 0

M a la ys ia

78. 1

G ermany

10. 5

S witz erla nd

U nited K ingdom

1

F inla nd

50.5

Finla nd

50. 5

G erma ny

56. 4

Aus tra lia

3. 0

I ndia

1

I ndia

30.5

India

30. 5

S witz erla nd

40. 0

S witz erla nd

S weden

1

M a la ys ia

25.1

Ma la y sia

25. 1

Aus tra l ia

15. 6

N orwa y

20.8

Austra lia

10. 4

F inla nd

5. 9

U nited K ingdom

4. 5

N orwa y

2. 1

F inla nd

0. 1

U nited K ingdom

0. 3

I ndia

R us sia

1

Aus tra lia

M a la ys ia

1

U nited K ingdom

N orwa y G rand To tal

1 90

N orwa y G rand T otal

4.5

United K ingdom

0.1

Norwa y

56,039.7

G rand To tal

622. 7

G rand T otal

12,959. 0

G rand T otal

0. 8

U nited S ta tes

1.9% -10.1%

I ndia

-23.5%

-1. 1

C a na da

-24.8%

-1. 9

N orwa y

-50.6%

-15. 4

U nited K ingdom

#DI V /0!

-27. 3

F inla nd

#DI V /0!

2,789. 8

G rand T otal

6.7%

Figure 28. Comparison by Country Source. Capital IQ

C omparable C ompany A nalys is > W eb 2.0 Su mmary b y Ex c hange C om pany Nam e

U S D Market Cap ($m) 17

OT C B B N a s da qG S

14

S E HK N a sda qG S

OT C P K

12

TSE

Avg US D Market C ap ($m) 23, 150.8 22, 130.6 2, 711.6

U S D LT M T otal R ev ($m)

S E HK NY S E

7,716. 9 1,894. 9

OM N a sda qG S

OM

1,850. 0 1,580. 8

U S D LT M To tal E B IT DA ($m) 1, 741. 6

E B IT DA % S E HK AS X

42. 6%

662. 9

OM

266. 8

GTS M

36. 3%

484. 2

N a sda qG S S E HK

S E HK

473. 1

1,692. 6

37. 2%

K OS E

7

NYS E

1, 894.9

Na s da qG S

CM

236. 1

TSE

88. 9

XT R A

31. 2%

TSE

5

OM

1, 850.0

G TS M

670. 5

NYS E

218. 9

K OS E

78. 1

N a sda qG S

30. 1%

N a s da qG M

5

GT SM

1, 341.0

TS E

542. 3

R TS

151. 8

GT SM

52. 4

TSE

22. 7%

TSX

4

K OS E

997.4

OS E

286. 8

BSE

116. 5

CM

34. 5

OS E

18. 0%

T S XV

4

OS E

286.8

CM

143. 5

OS E

107. 5

R TS

19. 8

OM

15. 3%

S E HK

3 2

TSX

277.0 261.1

K OS E

K OS E

91. 0 85. 2

K LS E

19. 3 10. 7

CM

XT R A

142. 5 127. 0

OS E

N a sda qG M

K LS E

14. 6% 13. 7%

R TS

13. 1%

A ME X

GTSM

ASX

2

XT R A

254.0

RT S

124. 8

N a sda qG M

80. 8

X TR A

10. 5

XT R A

2

O T CB B

222.9

SWX

98. 0

K LS E

78. 1

AM E X

6. 4

K OS E

5.2%

GT S M

2

CM

143.5

TS X

69. 3

TSE

77. 9

AS X

3. 0

SWX

1.9%

S WX

1

R TS

124.8

Na s da qG M

52. 2

TSX

41. 1

SWX

0. 8

N a sda qG M

1.6%

H LS E

1

SWX

98.0

HL S E

50. 5

SWX

40. 0

NYS E

0. 0

OT CB B

-5. 3%

CM

1

AM E X

75.2

AME X

37. 6

AM E X

29. 9

O T CN O

-1. 1

TSX

-14.3%

B SE

1

O T CP K

70.7

BS E

30. 5

XT RA

28. 2

AI M

-1. 9

BS E

-23.5%

NYS E

1

H LS E

50.5

K LS E

25. 1

OT CP K

16. 5

TSX

-2. 9

AM E X

-36.4%

OS E

1

BSE

30.5

O TC B B

13. 1

AS X

7. 8

N a sda qG M

-8. 2

T S XV

-39.0%

A IM

1

K LS E

25.1

AS X

10. 4

T S XV

6. 9

T S XV

-8. 3

OT CP K

-41.3%

OM

1

AS X

20.8

O TC P K

5. 9

H LS E

5. 9

H LS E

-15. 4

OT CN O

-50.6%

R TS

1

T S XV

17.8

TS X V

4. 5

OT CB B

2. 1

BS E

-27. 3

H LS E

#DI V /0!

K LS E

1

AI M

4.5

AIM

4. 5

OT CN O

2. 1

O T CP K

-43. 4

NYS E

#DI V /0!

O T C NO

1

O T CN O

0.1

O TC NO

0. 1

AI M

0. 3

O T CB B

-48. 3

AI M

#DI V /0!

G rand To tal

90

G rand T otal

Figure 29. Comparison by Exchange Source. Capital IQ

56,039.7

G rand To tal

622.7

G rand T otal

152.5

G rand T otal

2,789.8

G rand T otal

6.7%

Page 20

Financ ing - Las t Three Months (US $ m) Mo nth

Company Name

C ou ntry

A pr-09

Collec tive Media

US A

G OOM R adio

F ra nce

Marin S oftware

US A

The R ubic o n P rojec t FreeW heel

US A

Cellufun

US A

10.0

10.0

Conduc to r Inc .

US A US A

10.0

10.0 8. 1

S c anS c o ut

May-09 T otal

Debt financ ing

PIP E

S eries A

S eries B

S eries C

S eries D

20.0

16.0

13.0 8.0

G rand T otal 20.0

16.0

13.0 5. 0

US A

13.0 12.0

12.0

8.1

Batanga

US A

Viximo

US A

DoubleT wis t

US A

IMS hopping

US A

S oc ialtext

US A

Mixerc as t

US A

S oundClo ud

G ermany

3. 3

Tu beMogu l

US A

3. 0

Tribal No va Tripbas e

C a na da US A

2. 0

2. 0

S oc ialc as t

US A

1. 4

1. 4

Brandtology

1. 4

S c an & Target

S inga pore F ra nce

1.3

1. 4 1. 3

J odange

US A

1.2

Fo odis ta

US A

A pr-09 T otal May-09

Ange l/S eed

7. 5 5.0

5. 0 5. 0

5. 0

4. 7

4. 7 4. 5 4. 1

4. 5 4. 1 3. 3 3. 0

2. 5

2. 5

1. 2 0. 6

15. 6

7. 5

8.0

45.3

0. 6 52.5

16.1

12.0

149.5

200. 0

200. 0

Fac eboo k

US A

One Net E ntertainment

C hina

Cyberplex

C a na da

P eer39

US A

10.5

10.5

OpenX

UK

10.0

10.0

Imeem

US A

E veryZing

US A

Wo nderHill BlogHer Inc .

US A

Fu hu Inc .

US A

Azu ki S ys tems

US A

I Lo ve R ewards TimeBridge

C a na da US A

OLX

US A

Doc uS ign

US A

Medialets

US A

R es onate Netwo rks

US A

2. 0

Mo 'Minis

I sra el

1. 5

VoxPo p

US A

Lo op'd N etwork

US A

10. 0

10.0

20.0

12.9

12.9

8.8

8. 8 8. 3

8. 3

7. 0

7. 0

US A

7. 0

7. 0

6. 3

6. 3

6. 0

6. 0 5. 9 5. 0

5. 9 5. 0 5. 0

5. 0 5. 0

4.0

4. 0 2. 0 1. 5 1. 5

0.8 13. 6

5. 0

10.0

22.9

23.3

18.7

1. 5 40.8

205.0

0. 8 334.1

Page 21

Mo nth

Co mpany Name

C ountry

J un-09

S ugar Inc .

US A

Tumri

US A

Bo ku

US A

Wimba

US A

G rab N etwo rks G oo jet S AS

US A F rance

AdMeld Inc . beeT V

Angel/S eed

Debt financ ing

P IP E

S eries A

S eries B

S eries C

S eries D

16. 0

G rand To tal 16. 0

1 5.0

15. 0

13. 0

13. 0 12. 0

12. 0

8. 5

12. 0 8.5

US A

8. 0

8.0

US A

8. 0

8.0

blueK iw i S oftware S A

F rance

6. 5

6.5

No keena

US A

6. 5

6.5

S ens e Netw orks

US A

6. 0

Zo os k

US A

G ather

US A

Tao mee

C hina

Animo to

US A

G ameG ro und

I sra el

RingRevenue

US A

Crowdc as t

US A

3.0

3.0

YuMe

US A

2.9

2.9

eRepublik

S pain

2.8

News er L L C

US A

Clic kF uel Inigral

US A

AdE x Media

US A

G ROU .P S

US A

Yapta

US A

OneT XT

US A

2. 0

2.0

my6s ens e

2. 0

Cliqs et

I sra el US A

1.5

2.0 1.5

AdW hirl

US A

1.0

P ic aboo

US A

LiquidP lanner

US A

G lubble

N etherlands

To daC ell

I sra el

Mas hLo gic

US A

J un-09 T otal

Figure 30. Financing, Last Three Months Source. Company reports

US A

12.0

6.0 6. 0

6.0 5. 3

5.0

5.0 4. 4

4.4

4.1

4.1 3. 5

3.5

2.8 2. 5

2.5

2. 5

2.5

2.4

2.4 2. 3

2.3

2.1

2.1 2. 0

2.0

1.0 1. 0

1.0

1.0

1.0 1. 0

1.0

1. 0

1.0

0.5 39.3

5.3

0.5 15.3

13.5

6 7.8

34.0

5.3

175.1

Page 22

C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity C ompany

HQ

W ebs ite

Des criptio n

A dE x media

U nited S ta tes

www.adex.com

A dMeld Inc .

U nited S ta tes

www.admeld.com

Adex Media , I nc . opera tes a s a n integra ted I nternet ma rk eting, a dv ertis ing, a nd lea d genera tion publisher, a s well a s developer, ma rk eter, a nd dis tributor of con sumer produc ts in the U nited S ta tes . I ts ma rk eting pla tform prov ides v a rious serv ices , inc luding sea rc h ma rk eting, displa y ma rk eting, lea d genera tion, a nd a ffilia te ma rketing; a nd offers pa y-per-performa nce pricing/c ost-per-a ction/pa y-per-a c tion ba sed serv ices . T he c ompa ny a lso provides O vernight G enius , a computer lea rning cours e for MS W indows , MS O ffic e, eB a y , a nd others; R is ing S ta r L ea rning a ma th a nd la ngua ge a rts educa tiona l produc t for c hildren; D ebt S na p a n a udio s emina r to help c onsumers ma na ge their AdMeld, Inc . offers a dv ertis ing a nd s oftwa re solutions . The compa ny wa s founded in 2007 a nd is ba s ed in New Y ork , N ew Y ork.

A nimoto

U nited S ta tes

www.animoto.com

Animoto, I nc . provides a W eb a ppli ca tion tha t a utoma tic a lly genera tes profes siona lly produc ed videos us ing i ts own c inema tic a rtifi cia l intellige nce tec hnology a nd high-end moti on des ign. Its technology ena bles videos to get cus tomiz ed orc hes tra tion of us er-s elected ima ges a nd mus ic. T he compa ny wa s founded in 2006 a nd is ba sed in New Y ork , New Y ork with a n a dditiona l offic e in S a n Fra nc isc o, C a lifornia .

A dW hirl

U nited S ta tes

www.adwhirl.com

AdW hirl, I nc. dev elops online a dvertisement pla tform for iP hone a pplica tion dev elopers . The compa ny wa s founded in 2009 a nd is ba s ed in Menlo P a rk , Ca lifornia .

beeTV

U nited S ta tes

www.bee.tv

blueK iwi S oftware S A

F ra nc e

www.bluekiwi.fr

beeTV is y our v iewer’s own pers ona l c ha nnel tha t a ntic ipa tes their viewi ng needs a nd desi res while ta k ing i nto context their sc hedule, beha viors a nd ev en their mood. I t uses a rev olutiona ry , proprieta ry, c ontex tua l ma tc hing a lgorithm inc orpora ti ng “huma n unders ta nding” to offer y our viewer a n enterta ining, person a lized “cha nnel” a cc es sible from a ll three sc reens - T V , mobile a nd P C . beeTV s ervic es I P TV , c a ble, sa tellite, mo bile, internet a nd D TT pla tforms . It is a c omplement to your exis ting na viga tion sy stem. It is a find engine ra ther tha n a s ea rch engine blueK iwi S oftwa re S A designs a nd dev elops enterprise softwa re tha t fa cilita tes network coll a bora tion. T he c ompa ny wa s founded in 2006 a nd is ba sed in P a ris , F ra nce.

B oku

U nited S ta tes

www.boku.com

B O K U, Inc . provides online pa y men ts s ervic es to pa y for v irtua l a nd digita l goods with the mobile phone. I t s erves c us tomers in the United S ta tes a nd interna tiona lly . The compa ny wa s incorpora ted in 2008 a nd is ba sed in S a n F ra ncis co, Ca lifornia with a dditiona l offic es in E urope, Asi a , a nd L a tin A meric a .

C liqs et

U nited S ta tes

www.cliqset.com

C liqs et, Inc . provides a n online pla tform tha t a llows developers a nd us ers to c rea te, orga niz e, retriev e, s ha re, a nd ma nipula te s oc ia l informa tion on the W eb, des ktop, a nd mobile env ironments. It brings together photos, bookma rks , a nd loca tions . The c ompa ny ’s pla tform cons is ts of AP Is for ma na ging va rious a spec ts of users ’ soc ia l identity giving the a bility to build s oc ia l a pplic a tions without recrea ting the wheel. C liqs et, I nc. wa s founded in 2008 a nd is ba s ed i n J a ck s onville, F lorida .

C rowdc as t

U nited S ta tes

www.crowdcast.com

eR epublik

S pa in

www.erepublik.com

C rowdca s t s pecia liz es in enterpris e predic tion ma rket softwa re-a s-a serv ic e, going into enterpris e 2. 0 idea s a nd bringing the c ollective power of the wis dom of crowds to corpora tions . S C E R P K W E B S A provides online ga ming a nd s ocia l network s ervic es. I ts soc ia l network a llows us ers or citizens to intera c t a nd crea te origina l c ontent a nd to follow politica l, economic , a nd or milita ry a s pira tions . T he c ompa ny wa s founded i n 2007 a nd is ba s ed in B uc ha res t, R oma nia .

G am eG ro und

I s ra el

www.gameground.com

G a meG round dev elops a n onl ine s ocia l network for ga mers . The compa ny is ba s ed in I sra el.

G ath er Inc .

U nited S ta tes

www.gather.com

G a ther, Inc . opera tes a s ocia l network ing s ite for a dults. I t ena bles us ers to s ha re thoughts, c onv ers a tions, v ideo, informa tion, pic tures , idea s, a nd a udio. G a ther, I nc. wa s formerly k nown a s S uffic iently Adva nc ed T ec hnology C orpora tion a nd cha nged its na me to G a ther, I nc. in J uly 2005. The compa ny wa s incorpora ted in 2004 a nd is hea d qua rtered in B os ton, Ma s sa c hus etts. G a ther, I nc. opera tes a s a s ubsidia ry of America n P ublic M edia G roup.

G lubble BV

N etherla nds

www.gubble.com

G lubble i s a n online a c tiv ity c enter tha t turns pla y ing a nd s urfing on the Internet into a n experienc e for the entire fa mily . G lubble prov ides pa rents with ea s y-to-use tools a nd a fa mily s ocia l network to s upport their c hildren’s pla y , lea rning a nd dis cov ery on the W eb. The compa ny wa s founded in 2006 a nd ha s six employees .

G o ojet S AS

F ra nc e

www.goojet.com

G oojet S AS provides online s ervic es. Its s ervic es include c ommunic a tion tools, da ta s ha ring, informa tion serv ices , s ocia l network ing tools, ga mes, a nd even tra ns a c tiona l s erv ic es. T he c ompa ny a ls o ena bles us ers to c rea te a nd promote their own serv ices . G oojet S AS wa s founded in 2007 a nd is ba s ed in P ibra c, Fra nc e.

G rab N etworks

U nited S ta tes

www.grabnetworks.com

G R OU .P S

U nited S ta tes

www.gro.ps/groudotps

G ra b N etworks , I nc. di stributes a nd monetiz es vi deo c ontent on the I nternet. G ra b Network s, I nc . wa s formerly known a s Any S trea m, I nc . a nd c ha nged its na me to G ra b N etworks , I nc. in S eptember 2008. T he c ompa ny wa s founded i n 2000 a nd is hea dqua rtered in D ulles, V G rou.ps provides a sha ring a nd communica tion p la tform for s ocia l groups . It fea tures wik i, photos , link s, blogs, a nd c a lenda r. The c ompa ny is ba s ed in S a n F ra nc isc o, C a lifornia .

I Lo ve R ewards Inc .

C a na da

www.iloverewards.com

I L ove R ewa rds I nc. opera tes a s a W eb-ba sed inc entiv e ma rk eting compa ny . It des igns , develops , a nd imple ments online points -ba sed employee rewa rds a nd recognition progra ms for compa nies a nd busines s es in N orth America . The compa ny prov ides employ ee recognition, sa les incentives , rec ess ion pa ck a ge, a nd enga ge genera tion Y s olutions . I t serv es communic a tions , informa tion tec hnology, ins ura nc e, profes s iona l s ervic es , reta il/cons umer goods , hos pita lity, food serv ices , ma nufa c turing, a nd tra ns port industries . I L ove R ewa rds I nc. wa s founded in 1995 a nd is ba s ed in Toronto, C a na da .

In ig ral

U nited S ta tes

www.inigral.com

Inigra l, Inc . enga ges in the development of s oc ia l network ing website for students , their peers a nd their ins tru ctors. I nigra l, I nc. is ba sed in P a lo A lto, C a lifornia .

L iquidP lan ner

U nited S ta tes

wwww.liquidpl anner.com

L iquidP la nner, I nc. offers online projec t ma na gement tools . I t offers a sy stem for c a pturing es tima tes a nd crea ting proba bilis tic sc hedules . T he c ompa ny wa s formerly k nown a s Tea m46, I nc . The compa ny wa s founded in 2006 a nd is ba s ed in B ellevue, Wa s hington.

Mas hLo gic

U nited S ta tes

www.mashlogic.com

Ma s hL ogic I nc. enga ges in dev eloping c us tomized web brows ers. The compa ny wa s founded in 2007 a nd is ba sed in Menlo P a rk, Ca lifornia .

m y6s en s e

I s ra el

www.my6sense.com

News er L LC

U nited S ta tes

www.newser.com

Nokee na

U nited S ta tes

www.nokeena.com

my 6s ense Inc . prov ides mobi le technology s olutions. I t offers D igita l I ntuition tha t c onnec ts us ers with content providing wa y to experienc e informa tion on mobile a nd desk top. The c ompa ny wa s founded in 2007 a nd is ba s ed in Herz liya P itua ch, I s ra el. Newser L L C provides online news serv ices . I t offers news in the a rea s of a rts a nd liv ing, politics , bus iness , s cienc e a nd hea lth, crime a nd courts , sports, tec hnology, a nd media . T he c ompa ny wa s inc orpora ted in 2007 a nd is ba sed in Chic a go, Il linois. Nok eena N etwork s, I nc. enga ges in dev elopment of technology to dis tribute a nd s tore online videos . I t develops v ideo proces sing a nd network opti miz a tion tec hnology tha t elimina tes v ideo stops a nd sta rts by monitoring c onges tion on the network, a nd a djus ts v ideo tra ns miss ion a cc ordingly. T he compa ny wa s founded in 2008 a nd is ba sed in S a nta C la ra , C a liforni a .

On eTX T

U nited S ta tes

www.onetxt.com

O neT X T prov ides a pa yments proces sing a lterna tiv e for s oc ia l network s, onl ine ga mes to a c cept pa yments , c rea te loya lty progra ms, a nd send ma rketing mes sa ges .

P ic aboo

U nited S ta tes

www.picaboo.com

R ing R evenu e

U nited S ta tes

www.ringrevenue.com

P ic a boo C orpora tion provides onli ne photo book s a nd ca rds . I t offers a softwa re progra m tha t turns photos into photo book s. The compa ny wa s founded in 2002 a nd is ba sed in M enlo P a rk , C a lifornia . R ing R ev enue, I nc. prov ides online ca ll tra c k ing s ervic es . The compa ny wa s incorpora ted in 2009 a nd is ba sed in S a n ta B a rba ra , Ca lifornia .

Page 23

S ens e Networks

U nited S ta tes

www.sensenetworks.com

A ma c hine-lea rning s ta rtup co-founded by MI T computer s cientis t S a ndy P entla nd, S ense N etwork s c ollec ts billions of da ta points a bout people’s loc a tions from c ell phones, ta xi ca bs , c a mera s, a nd G P S devic es. It then a na ly zes the da ta look ing for a ggrega te pa tterns a bout cons umer beha v ior which it hopes to s ell to fina nc ia l institutions a nd inves tors. F ounded 20 03.

S ug ar Inc .

U nited S ta tes

www.sugarinc.com

S uga r, I nc. opera tes a s a n online media compa ny . It opera tes lifes ty le a nd enterta inment W ebsites tha t cov er celebrity, fa s hion, shopping, bea uty , enterta inment, food, a nd hea lth topics . T he c ompa ny a lso offers a shopping engine for fa s hion a nd bea uty ca tegories . S uga r, I nc. , formerly k nown a s S uga r P ublishing, I nc ., wa s founde d in 2006 a nd is hea dqua rtered in S a n F ra nc isc o, C a lifornia .

T aoMee

C hina

www.taomee.com

T odaCell

I s ra el

www.todacell.com

T um ri

U nited S ta tes

www.tumri.co

S uga r, I nc. opera tes a s a n online media compa ny . It opera tes lifes ty le a nd enterta inment W ebsites tha t cov er celebrity, fa s hion, shopping, bea uty , enterta inment, food, a nd hea lth topics . T he c ompa ny a lso offers a shopping engine for fa s hion a nd bea uty ca tegories . S uga r, I nc. , formerly k nown a s S uga r P ublishing, I nc ., wa s founde d in 2006 a nd is hea dqua rtered in S a n F ra nc isc o, C a lifornia . T oda ! C ell is a n I T c ompa ny founded in M a rch 2007 by a tea m of vetera ns of the online a dv ertis ing indus try a nd ex perts in mobile a dv ertis ing tec hnology. T umri, I nc. provides online dis pla y a dvertising sol utions . The c ompa ny ’s s olution, the AdP od, ena bles a dv ertis ers to c rea te a nd del iver ta rgeted online dis pla y a ds to c onsumers . It serv es a dvertis ers , c rea tiv e a nd media buy ing a gencies , a nd publishers . The c ompa ny wa s founded in 2004 a nd is ba s ed in Mounta in V iew, C a lifornia .

W imba Inc

U nited S ta tes

www.wimba.com

Yapta

U nited S ta tes

www.yapta.com

YuMe

U nited S ta tes

www.yumenetworks.co m

Y uMe, I nc . opera tes a s a v ideo a dv ertis ing network on W eb. I t offers a d ma na gement sy stem tha t ena bles a dv ertis ers a nd publishers to identify, cla s sify , a nd tra ck content throu gh digita l media pla tforms, s uc h a s W eb, downloa ds, mobile, a n d I P T V . The compa ny a ls o ena bles publishers to orga nize video on their site i nto content c ha nnels, s uc h a s a utomotiv e, fi na ncia l serv ices , lifesty le, news , music , s ports , enterta inment, a nd fa mily friendly. In a ddition, it offers rea l-time ta rgeting, mea s urement, a nd optimiza tion; c ontent distribution a nd vira l a dvertising opportunities ; a suite of intera c tiv e a d pla c ements ; a nd v ideo monetiza tion s ervic es . F urther, the c ompa ny provides a beha viora l ta rgeting sy stem tha t ena bles a dv ertis ers to ta rget their mess a ges to v iewers on a na tiona l sc a le ba s ed on v ideo v iewing interes ts a nd purcha s e intent. Y uMe, Inc . wa s founded in 2004 a nd is hea dqua rtered in R edwood City, Ca lifornia .

Zoos k

U nited S ta tes

www.zoosk.com

Zoos k , Inc . opera tes a s a n online s ocia l da ting network . T he c ompa ny wa s founded in 2007 a nd is ba s ed in S a n Fra nc isc o, C a lifornia .

Figure 31. Company Descriptions Source. Company reports, Capital IQ, Crunchbase

W imba , Inc . provides lea rning s oftwa re a pplic a tions a nd s ervic es to the educ a tion indus try in the Un ited S ta tes a nd the United K ingdom. The compa ny offers D iploma , a qu estion a uthoring a n d ma na gement tool tha t a llows ins truc tors to c rea te or edit ques tions; C la s sroom 5. 2, a cla s s room environment with va rious fea tures tha t include a udio, vid eo, a pplica tion sha ring, a nd c ontent dis pla y; a nd C olla bora tion S uite tha t a llows ins titutions to bridge the ga p between technology a nd peda gogy by s upplementing cours e ma na gement s ys tems . It a ls o provides C rea te, a content a uthori ng tool, whic h c onv erts M icros oft W ord doc uments into c ontent for online cours es; P ronto, a n a ca demic mes sa ging pla tform, whic h is designed for educ a tors to a dv a nc e a nd promote lea rning; V oic e, a W eb-ba s ed v oic e s olution th a t fa c ilita tes a nd promotes voc a l in struction, c olla bora tion, c oa c hing, a nd a s s ess ment; a nd CM S Integra tion. I t s erves univ ersities , community colleges , s chool distric ts , a nd educ a tion ins titutions. T he compa ny wa s formerly known a s H orizon W imba , Inc . a nd cha nged its na me to W imba , I nc. in April 2007. W imba Inc wa s founded in 1998 a nd is ba sed in N ew Y ork New Y ork with a dditiona l offic es in C a mbridge U nited K ingdom; a nd A tla nta G e Y a pta , Inc ., a lso known a s Y our Ama zing P ers ona l T ra vel As sis ta nt, prov ides online tra vel s hopping s ervic e tha t monitors a irline tic ket pricing a nd a wa rd sea t a v a ila bility for tra v elers. T he compa ny ena bles tra velers a nd s ma ll bus iness es to find flights a nd hotel rooms , rec ord persona l flight preferenc es , tra c k a irfa re a nd hotel pric es, a nd be a lerted when prices drop to book a flight. I t a ls o prov ides hote l pric e tra c k ing s ervic es tha t ena ble tra velers to tra c k a nd compa re pricing on na tiona l a nd interna tiona l hotel properties. Y a pta , I nc . wa s founded in 2006 a nd is ba s ed in S ea ttle, W a s hington.

Page 24

RELEVANT DISCLOSURES APPLICABLE TO: NONE LIST OF DISCLOSURE TERMS: 1.

None applicable.

ANALYST CERTIFICATION Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our web site at www.researchcapital.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the expressed permission of Research Capital Corporation. (U.S. Institutional Clients — Research Capital U.S.A. Inc. (a wholly owned subsidiary of Research Capital Corporation) accepts responsibility for the contents of this report subject to the terms & limitations set out above. Firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital U.S.A. Inc., a Broker-Dealer Registered with the United States Securities and Exchange Commission).

Tor ont o 41 6. 860 .7 60 0

M ontr eal 5 14. 39 9. 15 00

V a nc ouve r 6 04.6 6 2.1 80 0

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Ca lgar y 4 0 3. 2 65 .7 40 0

Re gi na 30 6.5 66. 75 50