09-08-04 Web 2.0 Weekly

SOFTWARE & SERVICES

4 AUGUST 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY

[email protected] Arun Thomas (Associate) 416.860.7666

SOCIAL NETWORKS AND AD NETWORK TO P DESTINATONS FO R CAPITAL IN JULY CA P IT AL R AI S E D IN J UL Y CL OS E S B EL O W J U NE L E V EL S The month of July saw 25 financings totalling $164.4 million, lower than June (at $196.1 million), but better than May at $151.3 million (excluding the Facebook transaction at $200 million). On the acquisition front, it is rumoured that Super Rewards (a subsidiary of KITN media) received $50 million from Adknowledge. From a sector perspective, for the last three months, Social Networks continues to be the top destination for capital, closely followed by Ad Networks.

Financing by Month 900.0

45

800.0

40

763.0

700.0

35

662.9

30

500.0

25

461.7

(#)

(US$mm)

600.0

400.0

20

375.3 351.4

351.3 308.3

300.0

15 254.4

245.3 203.6

194.9

200.0

147.3 111.0 100.0 36.4 21.4 23.9 13.221.4 7.5 9.4 12.5

100.3

88.5 87.3 66.3 64.7 70.0 68.0 48.4 47.6 47.538.8 40.538.8 30.0 23.5

72.1

145.4 90.3

139.7

132.3 82.3

196.1 191.0 10 177.5 164.4 149.5

125.6 101.1

0.0

5

Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09

0

July closes at $164.4 million: Total capital raised in July was $164.4 million through 25 transactions, averaging $6.3 million per transaction. In July, online media company Pandora (Internet Radio) secured the largest financing transaction ($35 million). In-text advertisement company Kontera Ltd. and social networking company Ning followed with $15.5 million and $15.0 million in financings, respectively. Canadian company Super Rewards (subsidiary of KITN Media) is rumoured to have fetched $50 million in its acquisition by Adknowledge. June closed with $196.1 million in financing on 40 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.6 million and $4.9 million, respectively. Weak price performance: Most of the companies in our universe had negative stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 27 companies showing negative returns on the week. Quepasa Corp (QPSA-OTCBB) led the group with a 20.2% return, while Shanda Interactive Entertainment Ltd. (SNDA-NASDAQGS) had the worst return, dropping 12.4% in the week. This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0

Montreal 514.399.1500

w w w . r e s e a rc h c a p i t a l . c o m Vancouver 604.662.1800

Calgary 403.265.7400

Regina 306.566.7550

Page 2

THE WEB 2.0 UNIVERSE Ninety-one public Web 2.0 companies identified: Our W eb 2.0 universe contains 91 companies, with a combined market cap of ~$61 billion (Figure 1). The median market cap for the group is ~$50 million, with average trailing revenue of ~$156 million (median $56.1 million). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a valuation basis, the overall average is 5.8x trailing revenue (median 2.0x) and 10.9x trailing EBITDA (median 9.6x). Twenty-one of the companies have more than 500 employees. C omparable C ompany Analys is > Web 2.0 C ompany Name

L TM as of Ticker

E xc hange

Accelerize New Media , Inc. Actoz S oft C o. , Ltd. AQ Interactive, Inc. As s ociated Media Holdings Inc. B igs tring C orp. B eta wave C orporation B eyond C ommerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C hangyou. com L imited C hina G a teway C orporation C hines e G amer Interna tiona l C LIC K E R Inc. C ornerW orld C orpora tion C yberplex Inc. DADA S pA DXN Holdings B hd Dibz International, Inc. DigitalP os t Interactive, Inc. DigitalT own, Inc. Dolphin Digital Media , Inc. E olith C o. Ltd. E xtens ions , Inc. F luid Mus ic C a nada , Inc. F rogs ter Interactive P ictures AG G ama nia Digita l E ntertainment C o., Ltd. G ameOn C o Ltd. G eoS entric O yj G iant Interactive G roup, Inc. G iga Media Ltd. G ravity C o., Ltd G ree, Inc. G ungHo O nline E ntertainment, Inc. HanbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E nterta inment P ty Ltd. K AB Dis tribution Inc. K ings oft C o. Ltd. Lingo Media C orporation LiveW orld Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MO K O .mobi Limited Myriad G roup AG NE O W IZ G ames C orpora tion NetDragon W ebS oft, Inc. Neteas e. com Inc. NeuLion Incorporated NeXplore C orporation Ngi G roup Inc. Northgate T echnologies L imited O pen T ext C orp. O penwave S ys tems Inc. P erfect W orld C o. , Ltd. P NI Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S handa Interactive E nterta inment Ltd. S hutterfly, Inc. S K C ommunications C o., Ltd. S NAP Interactive, Inc. S NM G loba l Holdings S ocial Media V enures , Inc. S ocialwis e, Inc. S ohu. com Inc. S park Networks , Inc. S pectrumDNA, Inc. T encent Holdings Ltd. T he P arent C ompany T he9 Limited T heS treet. com, Inc. T ota l S port O nline AS T ree.C om, Inc. Unis erve C ommunica tions C orp. United O nline Inc. UOMO Media, Inc V alueC lick Inc. V OIS , Inc. W ebzen Inc. W izzard S oftwa re C orporation W orlds . com Inc. W oozyF ly, Inc. W ynds torm C orpora tion XING AG Y eda ngO nline C orp. Y nk K orea Inc.

3/31/2009 3/31/2009 3/31/2009 6/30/2007 3/31/2009 3/31/2009 3/31/2009 9/30/2008 9/30/2008 3/31/2009 6/30/2009 9/30/2008 3/31/2009 5/31/2009 1/31/2009 3/31/2009 3/31/2009 2/28/2009 NA 3/31/2009 5/31/2009 3/31/2009 12/31/2008 3/31/2009 3/31/2009 12/31/2008 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 6/30/2008 3/31/2009 3/31/2009 3/31/2009 1/31/2009 3/31/2009 12/31/2008 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 6/30/2009 12/31/2008 12/31/2008 12/31/2008 3/31/2009 3/31/2009 3/31/2009 6/30/2008 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 12/31/2007 3/31/2009 6/30/2009 12/31/2008 3/31/2009 9/30/2008 12/31/2008 3/31/2009 6/30/2009 3/31/2009 3/31/2009 3/31/2009 8/2/2008 12/31/2008 3/31/2009 3/31/2006 3/31/2009 2/28/2009 3/31/2009 1/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 3/31/2009 NA 3/31/2009 12/31/2007 3/31/2009

OT C B B K OS E TS E OT C P K OT C B B OT C B B OT C B B AIM OT C P K Na s daqG S Na s daqG S OT C P K GTS M OT C B B OT C B B TS X CM K LS E OT C P K OT C B B OT C B B OT C B B K OS E OT C P K TS X XT R A GTS M TS E HL S E NY S E Na s daqG S Na s daqG M TS E OS E K OS E Na s daqG S OT C B B T S XV AS X TS X S E HK T S XV OT C P K Na s daqG M OT C B B TS E OM AS X SWX K OS E S E HK Na s daqG S TS X OT C P K TS E BSE Na s daqG S Na s daqG S Na s daqG S T S XV OT C B B R TS Na s daqG S Na s daqG S K OS E OT C B B OT C P K OT C P K OT C B B Na s daqG S AME X OT C B B S E HK OT C P K Na s daqG S Na s daqG M O T C NO Na s daqG M T S XV Na s daqG S OT C B B Na s daqG S OT C B B Na s daqG M AME X OT C B B OT C B B OT C P K XT R A K OS E K OS E

High Low Average Median

Figure 1. Web 2.0 Universe Summary Source. Capital IQ

AC LZ A052790 3838 AS MH BS GC B W AV B Y OC AIM: B G T BWBA C HIN. A C Y OU CGWY G T S M: 3083 C LK Z CWR L T S X :C X C M: DA DX N DIB Z DG LP DG T W DP DM A041060 E XT I T S X :F MN FRG 6180 3812 G E O 1V GA G IG M GR VY T S E : 3632 3765 A047080 IAC I IAS C . A IE E AS X :J MB T S X :K AB 3888 T S X V :LM LVW D L OO K MAG Y 2121 MT G B MK B MY R N A095660 777 NT E S T S X :NLN NX P C 2497 590057 OT E X OP W V PWRD T S X V :P N QP S A R BCI S NDA S FLY A066270 S TVI S NMN S MV I S C LW S O HU L OV S P XA 700 K IDS . Q NC T Y TS CM T OS O TR E E T S X V :US S UNT D UO MO V C LK V O IS W ZE N W ZE W DDD W ZY F W Y ND O 1B C A052770 A023770

Trading C urrency HQ 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 US D C AD E UR MY R US D US D US D US D KR W 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 AUD C AD HK D C AD US D US D US D JPY SEK AUD C HF KR W HK D US D C AD US D JPY INR US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D HK D US D US D US D NO K US D C AD US D US D US D US D US D US D US D US D US D E UR KR W KR W

United S ta tes S outh K orea J a pan United S ta tes United S ta tes United S ta tes United S ta tes United K ingdom United S ta tes Hong K ong C hina United S ta tes T aiwa n United S ta tes United S ta tes C anada Italy Ma la ys ia United S ta tes United S ta tes United S ta tes United S ta tes S outh K orea United S ta tes United S ta tes G ermany T aiwa n J a pan F inland C hina T aiwa n S outh K orea J a pan J a pan S outh K orea United S ta tes C anada C anada Aus tralia C anada C hina C anada United S ta tes United S ta tes United S ta tes J a pan S weden Aus tralia S witzerland S outh K orea C hina C hina C anada United S ta tes J a pan India C anada United S ta tes C hina C anada United S ta tes R us s ia C hina United S ta tes S outh K orea United S ta tes United S ta tes United S ta tes United S ta tes C hina United S ta tes United S ta tes C hina United S ta tes C hina United S ta tes Norway United S ta tes C anada United S ta tes C anada United S ta tes United S ta tes S outh K orea United S ta tes United S ta tes United S ta tes United S ta tes G ermany S outh K orea S outh K orea

C urrent P rice 0. 56 23,700 60,400 0. 01 0. 03 0. 07 0. 38 0. 02 0. 23 3. 06 37. 12 0. 02 433 0. 01 0. 05 2 6. 14 0. 40 0. 00 0. 05 1. 40 0. 49 810 0. 08 0. 91 13. 50 59. 60 101,900 0. 04 8 4. 87 1. 58 7,650 209,000 4,370 18. 47 0. 11 0. 08 0. 38 1 8 1. 15 0. 04 1. 20 0. 01 667000. 00 269. 00 0. 07 4. 14 31200. 00 6 44. 15 0. 81 1 32250. 00 39. 15 37. 95 2. 67 35. 84 1. 50 1 1. 05 49. 91 16. 20 9230. 00 0 0. 01 0 0. 76 61. 63 2 0 105 0. 02 8. 66 2. 10 0. 03 9. 70 0. 05 9. 20 0 12 0 3. 40 0. 51 0. 10 0. 15 0. 10 28. 50 7,940 5,330

US D Market C ap ($m)

US D L TM Total R ev ($m)

US D L TM Total E B ITDA ($m)

E B ITDA %

TE V/L TM R evenue

TE V/L TM E B ITDA

E mployees

15. 5 167. 2 34. 7 0.6 1.4 2.0 17. 2 5.8 19. 5 324. 7 2,041. 6 0.3 1,109. 4 0.4 3.2 102. 6 141. 6 26. 3 0.0 4.0 38. 3 25. 3 48. 0 3.6 44. 2 48. 5 275. 8 104. 0 51. 1 1,838. 4 265. 5 43. 9 1,807. 6 252. 8 78. 4 2,787. 4 8.0 3.8 15. 4 83. 0 1,096. 9 13. 3 1.1 20. 5 2.7 1,082. 6 2,448. 4 4.7 82. 4 537. 3 419. 4 5,670. 2 85. 6 30. 7 42. 2 28. 5 1,997. 0 222. 4 1,743. 2 47. 5 15. 1 145. 7 3,332. 4 411. 7 316. 5 2.2 0.0 0.0 32. 9 2,358. 2 51. 2 6.8 24, 360.7 0.4 220. 9 64. 3 0.1 104. 7 1.0 768. 9 14. 6 1,011. 4 5.0 40. 3 24. 4 5.2 2.6 1.8 213. 9 102. 0 23. 3

4. 1 94. 5 65. 3 0. 1 0. 1 8. 4 7. 1 0. 3 0. 0 389.9 241.2 6. 7 56. 3 2. 5 1. 3 75. 5 239.2 78. 7 NA 0. 7 NM 0. 8 15. 1 NM 5. 0 3. 3 126.2 77. 7 6. 0 219.0 183.6 46. 8 31. 0 108.8 56. 5 1, 406. 4 0. 0 1. 6 14. 9 76. 3 129.1 0. 9 11. 4 60. 7 0. 1 127.3 1, 896. 1 1. 2 40. 0 202.6 87. 0 470.5 18. 1 0. 7 93. 2 116.9 782.6 197.2 228.1 20. 1 0. 1 150.1 570.1 218.6 188.3 3. 3 2. 0 0. 1 0. 0 485.1 54. 3 0. 1 1, 203. 5 112.0 250.4 67. 0 2. 2 215.6 24. 1 811.2 0. 6 591.7 0. 0 23. 5 5. 6 0. 0 NM NA 53. 9 56. 1 10. 8

(4.4) 20. 5 4.1 (2.3) (2.0) (12. 6) (9.5) (1.9) (4.6) 30. 8 147.2 (6.6) 31. 5 (1.2) NM 7.8 35. 0 10. 9 NM (2.6) (2.5) (3.7) (3.6) NM (6.9) (6.2) 21. 0 18. 4 (15. 6) NM NM 12. 9 11. 2 19. 5 (15. 1) 42. 6 (0.8) (5.1) 5.6 9.1 52. 0 (1.6) (0.0) (3.8) (3.1) 45. 1 291.3 (2.5) 0.8 54. 4 34. 4 305.8 (11. 8) (6.2) 11. 2 (27. 4) 199.2 (2.1) 124.6 0.5 (10. 8) 19. 6 260.9 27. 3 12. 2 0.9 (0.7) (0.1) (4.8) 209.4 11. 8 (2.6) 582.9 (13. 5) 85. 4 1.9 (1.1) (13. 3) 0.1 177.3 (0.5) 105.5 (1.1) (0.6) (5.3) (0.8) NM NM 16. 8 12. 1 (0.8)

NM 21. 7% 6.3% NM NM NM NM NM NM 7.9% 61. 0% -98. 9% 56. 0% -45. 8% NM 10. 3% 14. 6% 13. 8% NM NM NM NM -23. 6% NM NM NM 16. 6% 23. 7% NM NM NM 27. 5% 36. 0% 18. 0% -26. 8% 3.0% NM NM 37. 2% 11. 9% 40. 3% NM -0.4% -6.3% NM 35. 4% 15. 4% NM 1.9% 26. 8% 39. 5% 65. 0% -65. 2% NM 12. 0% -23. 5% 25. 5% -1.0% 54. 6% 2.3% NM 13. 1% 45. 8% 12. 5% 6.5% 28. 0% -34. 8% -60. 6% NM 43. 2% 21. 7% NM 48. 4% -12. 0% 34. 1% 2.9% -50. 6% -6.2% 0.2% 21. 9% -78. 2% 17. 8% NM -2.4% -94. 5% NM NM NM 31. 2% 21. 6% -7.6%

5. 0x 1. 4x 0. 1x 15.6x 37.4x 3. 1x 20.9x 0. 9x 7. 3x 0. 0x 18.5x 0. 2x 3. 6x 1. 3x 0. 8x 0. 5x 7. 7x 34.0x 3. 3x 6. 8x 14.3x 2. 0x 0. 5x 7. 8x 1. 0x 2. 1x 1. 1x 0. 6x 1. 8x 0. 7x 1. 2x 8. 4x 12.7x 7. 6x 1. 6x 2. 9x 2. 3x 2. 6x 3. 3x 3. 9x 49.2x 0. 0x 0. 2x 2. 6x 0. 6x 0. 4x 2. 3x 0. 0x 1. 6x 1. 7x 0. 2x 1. 1x 4. 6x 3. 8x 0. 9x 22.2x 0. 2x 4. 6x 0. 4x 0. 2x 1. 3x 23.5x 1. 5x 4. 6x 3. 0x 2. 0x -

6. 7x 1. 3x 11. 0x 12. 0x 33. 1x 12. 6x 5. 5x 3. 7x 12. 1x 2. 3x 11. 5x 21. 2x 1. 8x 9. 7x 20. 9x 21. 3x 10. 3x 9. 7x 8. 4x 0. 1x 10. 4x 0. 8x 0. 2x 12. 7x 25. 8x 0. 7x 8. 9x 4. 4x 45. 8x 5. 9x 8. 6x 9. 6x 9. 3x -

11 NA NA 3 4 53 69 9 46 2, 227 628 37 NA 22 NA NA 578 NA NA 7 3 NA NA 2 NA NA NA NA 108 1, 570 751 469 NA NA NA 3, 200 NA NA 72 NA 2, 271 NA NA 90 14 NA 2, 969 NA 405 NA 2, 426 3, 109 237 NA NA NA 3, 400 630 2, 096 NA 74 NA 3, 124 514 NA 11 33 NA NA 3, 197 183 7 6, 123 347 1, 626 310 16 700 NA 1, 469 NA 1, 189 4 NA 110 1 NA NA 239 NA NA

24, 360.7 0.0 678.1 51. 2

1,896. 1 0. 0 155.6 56.1

582. 9 -27.4 34.3 0. 8

65. 0% -98. 9% 6.8% 13. 1%

49.2x 0. 0x 5.8x 2. 0x

45. 8x 0. 1x 10.9x 9. 6x

6, 123 1 900 437

Page 3

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G ) July closes at $164.4 million: Total capital raised in July was $164.4 million through 25 transactions, averaging $6.3 million per transaction. In July, online media company Pandora (Internet Radio) has secured the largest financing transaction ($35 million). In-text advertisement company Kontera Ltd. and social networking company Ning followed with $15.5 million and $15.0 million in financings, respectively. Canadian company Super Rewards (subsidiary of KITN Media) is rumoured to have fetched $50 million in its acquisition by Adknowledge. June closed with $196.1 million in financing on 40 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.6 million and $4.9 million, respectively.

Financing Activity Last Three Months 7.0

250.0 6.6 6.3

6.0 200.0

5.0

4.9

150.0 (US$m)

(US$m)

4.0

3.0 100.0

2.0

50.0 1.0

0.0

0.0 May-09 (excl FB)

Jun-09 Total

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

Jul-09 Average

Facebook People Media Super Rewards AdLink Internet Media Pandora Media StumbleUpon One Net Entertainment xoopit ConnectEdu Sugar Inc. Kontera Ltd. Ning Tumri Boku Cyberplex QuickPlay Media Wimba Grab Networks Peer39 AdChina Causes OpenX Intent Media Imeem Goojet SAS Outspark EveryZing Acquia, Inc AdMeld Inc. beeTV SBNation I Love Rewards WonderHill BlogHer Inc. Gist blueKiwi Software SA Nokeena Metaversum Fuhu Inc. Azuki Systems Bubble Motion Invodo Zoosk Sense Networks Gather OLX MojoPages DocuSign TimeBridge Taomee Animoto Quikr India Pvt. Ltd. GameGround OPEN Sports network Medialets Nexage StyleCaster RingRevenue TweetDeck Crowdcast YuMe eRepublik ProtonMedia ClickFuel Newser LLC Inigral AdEx Media GROU.PS iLoop Mobile OneTXT Resonate Networks my6sense Yapta VoxPop Aloqa Cliqset Mo'Minis Lat49 Tributes.com CoTweet LiquidPlanner Cellufun Picaboo Clikthrough TodaCell Glubble AdWhirl Loop'd Network People Capital MashLogic BookFresh Jaxtr

(US$m)

Page 4

Pandora raises $35 million and Super Rewards is acquired for up to $50 million: On the acquisition front, Super Rewards (subsidiary of KITN media) was acquired by Adknowledge for a rumoured $50 million. On the capital raise front, Pandora had the largest raise in July, securing a $35 million round. For additional details on financings, see Figures 29 and 30 (at end of note).

Financing & M/A Summary - Last Three Months

250.0

200.0

150.0 Jul-09

Jun-09

May-09

100.0

50.0

0.0

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

Page 5

Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised ($265.5 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it was the Ad Network sector that saw the most transactions (17), raising $153.2 million (Figure 4). Capital Market Activity by Sector - Last Three Months 300.0

250.0

(US$m)

200.0

150.0 265.5

100.0 153.2 50.0 80.0

76.6 51.5

35.0

31.0

30.8

Search

Mobile Payment

Aggregation

Widget

Vertical Communities

Classified

Microblog

Mobile Ad

3.0

Media

3.2

Collaboration

4.1

Online Learning

5.2

Enterprise

6.3

Mobile

6.8

Video

13.0

Comment/Reputation

13.3

Gaming

16.5

Blog

17.0

Music

18.9

Infrastructure

19.3

Virtual World

21.5

Online Dating

26.4

17

1

5

8

1

3

7

1

4

4

6

3

3

3

2

1

1

1

2

1

1

2

# companies 13

29.0

Ad Network

Social Networks

0.0

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

Page 6

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

LTM Financing

4,000.0

16.0

3,500.0

14.0

3,000.0

12.0

2,500.0

10.0 (US$m)

18.0

(US$m)

4,500.0

`

Total

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

Average

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

0.0 Oct-06

0.0 Aug-06

2.0

Jun-06

500.0

Apr-06

4.0

Feb-06

1,000.0

Dec-05

6.0

Oct-05

1,500.0

Aug-05

8.0

Jun-05

2,000.0

Page 7

Cumulative total nears $7.3 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled just over $7.3 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 Q2/09 was $697.0 million buoyed by the $200 million Facebook transaction and is well below Q2/CY08 totals ($1.4 billion).

Web 2.0 Financing (cumulative) 8,000.0

1,600.0

1,356.9

1,400.0

7,000.0

6,000.0

1,200.0 1,007.6

5,000.0

1,000.0

4,000.0

800.0 697.0 594.2

600.0

613.8 3,000.0

414.2 366.3

400.0 203.7 174.8177.8 158.1 132.4145.6

200.0 41.5 24.7

88.3

2,000.0

59.4

33.5 22.2 43.3

1,000.0

73.5 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

Figure 6. Financing, Cumulative Source. Company reports

2005

2006

2007

2008

2009

(US$m)

(US$m)

872.1

Page 8

U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 78.1% of financings/M&A in the last twelve months involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S. leads with 74.4% of deals, while Canada was a distant second with a 4.9% share of the total number of financings (Figure 8). Financing/M&A by Country - LTM ($) Canada 4.7%

Financing/M&A by Country - LTM (#) UK 4.2%

Canada 4.9%

Israel 3.3% UK 3.0%

France 3.0%

China 2.6%

Israel 4.2%

France 3.1%

ROW 10.1%

Germany 2.1%

ROW 3.1%

USA 78.1%

USA 73.4%

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

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 25.8% of the total, with later-stage (Series D, E and PIPE) deals accounting for just 8.0%. Financing by Type - LTM

Series C 15.1%

Series B 25.8%

Series D 4.3% Series E 1.0%

Angel/Seed 17.4%

Series A 31.8%

PIPE 2.7%

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

Debt financing 2.0%

Page 9

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

Average financing round size 35.0 33.1

30.0

26.3

25.6

25.0

23.7

(US$m)

20.0

15.0

13.9

10.8 10.8

10.7 10.0

8.5 7.5

7.7 6.6

6.3 5.4 5.0 3.2

3.3

0.0 Angel/Seed

Debt financing

PIPE

Series A LTM Average Size

Figure 10. Average Size per Round Source. Company reports

Series B Overall Average

Series C

Series D

Series E

Page 10

C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E ) Price Performance: Our W eb 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 11).

Web 2.0 Index Price Performance 140

120

100

80

60

40

20

^COMP - Share Pricing Figure 11. Web 2.0 Price Performance Source. Capital IQ

Index: Web 2.0 (Market Cap)

7/30/2009

7/16/2009

7/2/2009

6/18/2009

6/4/2009

5/21/2009

5/7/2009

4/23/2009

4/9/2009

3/26/2009

3/12/2009

2/26/2009

2/12/2009

1/29/2009

1/15/2009

1/1/2009

12/18/2008

12/4/2008

11/20/2008

11/6/2008

10/23/2008

10/9/2008

9/25/2008

9/11/2008

8/28/2008

8/14/2008

7/31/2008

0

Page 11

Quepasa leads; Shanda falls: Most of the companies in our universe had negative stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 27 companies showing negative returns on the week. Quepasa Corp (QPSA-OTCBB) led the group with a 20.2% return, while Shanda Interactive Entertainment Ltd. (SNDANASDAQGS) had the worst return, dropping 12.4% in the week.

Quepas a Corp. Frogs ter Interactiv e Pictures A G G ree, Inc. K ings of t Co. Ltd. Modern Times G roup Mtg A B Northgate Technologies Limited Neteas e.com Inc. S park Netw orks , Inc. Lingo Media Corporation United Online Inc. S hutterf ly , Inc. Eolith Co. Ltd. IA C/InterA ctiveCorp. G ravity Co., Ltd Perfect World Co., Ltd. TheS treet.com, Inc. NetDragon WebS of t, Inc. Tencent Holdings Ltd. NEOWIZ Games Corporation LookS mart, Ltd. DA DA S pA PNI Digital Media Inc. Giant Interactive G roup, Inc. Y edangOnline Corp. A Q Interactiv e, Inc. Open Tex t Corp. V alueClick Inc. GungHo Online Entertainment, Inc. G igaMedia Ltd. Webz en Inc. S K Communications Co., Ltd. Cy berplex Inc. HanbitS of t, Inc. Gamania Digital Entertainment Co., S ohu.com Inc. Ngi G roup Inc. XING A G The9 Limited Mix i, Inc. CDC Corp. Chines e Gamer International G ameOn Co Ltd. My riad Group A G A ctoz S of t Co., Ltd. Y nk K orea Inc. Tree.Com, Inc. Openw ave S y s tems Inc. Changy ou.com Limited S handa Interactive Entertainment Ltd.

1 Week P rice P erformance

-6.7% -8.1% -9.3% -10.1% -10.9% -12.4%

-15.0% Figure 12. 1-Week Price Performance Source. Capital IQ

-10.0%

-0.4% -1.0% -1.5% -1.5% -1.6% -1.9% -2.2% -2.7% -2.7% -2.9% -2.9% -2.9% -3.1% -3.4% -3.5% -3.6% -4.0% -4.1% -4.4% -4.8% -4.8%

-5.0%

5.0% 4.7% 4.6% 4.5% 3.7% 3.3% 3.2% 3.1% 2.6% 2.5% 1.9% 1.5% 1.1% 1.0% 0.8% 0.6% 0.0%

0.0%

5.0%

6.7%

9.2%

10.0%

12.2% 11.4%

15.0%

20.2%

20.0%

25.0%

Page 12

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments C ompany

Headline

MOK O.mobi Limited (AS X: MKB )

MO K O. mobi Limited S ec ures D eal on AT& # 38;T M obiles MO K O. mo bi Limited has s ecured a dea l for its M OK O M usic on s elected AT &T mobile handsets . T he C ha t & S ha re platform's new development includes enha nc ed music community which ena bles us ers to s ea rch a nd dis c over, refer a nd buy, full-length trac ks , ring tones a nd a ns wer tones from their mobile.

Notes

B eyond Commerc e, Inc . (OT CB B: B Y OC)

B eyond Commerce I nc. Appoi nts P aul W . Morris on to the B eyond Commerce Inc . a nnounc ed tha t P aul W . Morris on ha s been a ppointed to its boa rd of direc tors . M r. Morris on is the six th me mber of B oard of Directors the boa rd of di rectors of B ey ond C ommerc e, whic h als o includes R on L oveles s, M ich a el W ars insk e, B a rry F alk, M urra y W illia ms, and R obert Mc Nulty. All are independent board members with the exceptions of Mr. W illiams and Mr. M cN ulty , C ha irma n of the B oa rd and C hief E xec utiv e Offic er. P aul W . Morris on is currently the C hief E xecuti ve Officer a nd P resident of OmniR elia nt H oldings Inc .

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

IAC /InterActiveC orp La unch of P roduction Compa ny, Notiona l; Appoints R i ck y V a n V een to H ea d N otiona l

IAC /I nterA ctiveC orp. a nnounc ed the launc h of Notiona l, a video content c ompa ny born out of its enterta inment property CollegeH umor. com. CollegeH umor's origina l video s have been viewed over 300 million times a nd its viewers wa tch 100 y ea rs worth of video content eac h month. B uilding on this succ ess ful foundation the new production company will crea te programming of a ll genres for a ll demogra phic s , to be distributed ac ross multiple media platforms, inc luding television. T he new endeavor wa s conceiv ed a s a n ex tens ion of CollegeH umor. co m's industry-leading c ontent s ensi bility and production capabilities . B y building o n top of that ba s e, Notional hopes to bring the DN A of an internet compa ny to an in terna tiona l producti on compa ny . B ut unlik e CollegeH umor's y oung ma le-focus ed a udie nce, N otional's content will a ppeal to a much broa der bas e. Notiona l will be headed by R ic ky V an V een, who will transition from hi s current role as E ditor-in-Chief of C ollegeH umor.

S ohu. c om Inc . (Nas daqG S : S OHU)

S ohu.com I nc. P rovides R evenue G uida nc e for the Third S ohu.com I nc. provided revenue guidance for the third quarter of 2009. For the qua rter, the co mpa ny ex pects tota l revenues to be between Quarter of 2009 $133.5 mi llion to $137. 5 million, with advertis ing rev enues of $49. 5 million to $51.5 million. B rand a dvertising revenues of $48 to $50 million. T his implies a 10% to 15% qu arter-on-qua rter growth or a negative 3% to pos itive 1% y ear-on-yea r growth. T his will bring bra nd advertising growth for the firs t qua rter-for the firs t three qua rters of 2009 to between 5% to 7% yea r-on-y ear. O nline games revenues of $67 mil lion to $69 million. B efore deduc ting the s ha re of non-G AAP net income pertaining to the non-c ontrolling interest in C ha ngyou, the c ompa ny estimates pro forma non-G AAP net income to be between $50 million to $52 mill ion, a s compared to $49 million for the s econd quarter as mentioned a bove. After deduc ting the s ha re of non-G AAP net income pertaining to the non-controlling interes t in Changy ou, S ohu es tima tes non-G AAP net income attributable to S ohu for the third qua rter of 2009 to be between $36 million to $38 million a nd non-G AAP fully diluted earnings per s hare for the third qua rter of 2009 to be between $0. 92 to $0. 97. As s uming no new grants of s hare-based a wa rds , S ohu estima te

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

B en S ilverma n to Join IAC /I nterActiveC orp. to H ead I ts New V enture

B en S ilv erma n res igned to his job a s co-c ha irman of N B C E ntertainment a nd Universa l Movie S tudios to hea d a new v enture with B a rry Diller's I AC /InterActiveCorp. focusing on produc ing and dis tributing multimedia content. I AC a nnounc ed that it is forming a new production company led by S ilverma n tha t will look to bring a dv ertis ers into further into the dev elopment proces s on new media produc ts .

Neteas e. com Inc. (Nas daqG S : NT E S )

Netea se. c om I nc. R eports Online G a ming R ev enue R es ults for the F irst Quarter of 2009 DAD A S pA R eports E a rnings R es ults for the F irst S ix Months of 2009 S handa I nteractive E ntertainment L td. R eports Online G a ming R evenue R es ults for the F irs t Q ua rter of 2009

Netea se. com Inc. reported online gaming rev enue res ults for the first quarter of 2009. For the quarter, the compa ny reported rev enue of C N Y 710 million, with a 12. 9% mark et s ha re. DAD A S pA reported ea rnings res ults for the first s ix months of 2009. For the period, the company notched up rev enues of €76. 3 million, down from the €81.3 mill ion of the s a me period la s t year and net profits of €1. 1 million, down (from €8 million). S handa I nterac tive E ntertainment L td. reports online gaming rev enue res ults for the first quarter of 2009. For the quarter, the company reported revenue of CN Y 1.08 billion, with a 19. 6% ma rk et sh are.

T enc en t Ho ldings Ltd. (S E H K: 700)

T enc ent H oldings Ltd. R eports C hines e Online G aming R evenue R esul ts for the Firs t Quarter of 2009

T enc ent Holdin gs Ltd. reported Chines e online ga ming revenue res ults for the first qua rter of 2009. F or the qua rter, the company reported revenue of C N Y 910 million, with a 13% increas e quarter on qua rter.

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

T he9 Limited R eports Online G a ming R evenue R es ults for th e F irst Quarter of 2009 Changy ou.com Limited R eports Onl ine G a ming R evenu e R es ults for the F irst Quarter of 2009 G ia nt I nterac tiv e G roup, Inc . (NY S E : G A) agreed to a cquire 51% stake in X uela ng S oftwa re. S ohu.com I nc. R eports Una udited Cons olida ted F inancia l R es ults for the S econd Q ua rter a nd S ix Months E nded J une 30, 2009

T he9 Limi ted reported online gaming revenue results for the firs t qua rter of 2009. T he company reported tha t its firs t-qua rter rev enue decreas ed by 6% quarter on qua rter. Changy ou.com Limited reported online ga ming revenue res ults for the firs t qua rter of 2009. For the qua rter, the compa ny reported revenue of CN Y 420 million. G ia nt Interac tiv e G roup, I nc . (NY S E : G A) agreed to ac quire 51% s tak e in X uela ng S oftware on J uly 27, 2009.

Changy ou.com Limited R eports U naudited C onsolidated E a rnings R esults for the S econd Q ua rter E nded J une 30, 2009 ; P rovides E arnings G uida nce for the T hird Quarter of 2009

Changy ou.com Limited una udited c onsoli dated reported unaudited ea rnings res ults for the s econd quarter ended J une 30, 2009. T otal revenues for the sec ond quarter of 2009 increa sed 8% qua rter-over-qua rter and 39% y ea r-over-year to $66. 6 million. Opera ting profit for the sec ond quarter of 2009 increa s ed 4% qua rter-over-qua rter and 42 % y ear-over-y ear to $39. 5 million. N on-G AAP opera ting profit for the sec ond quarter of 2009 increa s ed 17% quarter-ov er-quarter a nd 5 7% y ea r-over-y ea r to $45. 1 million. F or the sec ond qua rter of 2009, net income increas ed 3% quarter-over-quarter a nd 9% y ea r-over-y ear to $ 34.5 millio n. Non-G AAP net income increa sed 17% quarter-ov erquarter and 24% ye ar-ov er-year to $40. 2 million. F ully diluted ea rnings per ADS were $0. 66, compared to $0.71 in the firs t quarter of 2009 a nd $0. 67 in the s econd quarter of 2008. N on-G AAP fully dilu ted earnings per A DS were $0.75, up from $0.72 in the firs t qua rter of 2009 and $0.68 in the second quarter of 2008. Inc ome before inc ome ta x expens e was $40. 3 million against $27. 7 million a y ea r a go. Opera ting ca sh flow for the qua rter wa s a net inflow of $33.7 mil lion.

DADA S pA (C M: DA) S handa Interactive E ntertainment L td. (Nas daqG S : S NDA)

C hang yo u. c om L imited (Nas daqG S : C YOU) G ian t Interactive G ro up, Inc . (NYS E : G A); Xuelang S oftw are S ohu. c om Inc . (Nas daqG S : S OHU)

C hang yo u. c om L imited (Nas daqG S : C YOU)

S ohu.com I nc. repo rted una udited Cons olida ted fina ncial res ults for the second qua rter a nd s ix mo nths ended June 30, 2009. F or the quarter, the c ompany reported operating profit of $48. 5 million, inc ome before inc ome ta x expens e of $49. 9 million, income from c ontinuing opera tions of $41.9 mill ion, net inc ome of $42. 3 million a nd net inc ome attributable to company of $33. 5 million or $0. 79 diluted per s ha re on total rev enues of $127. 1 million against operating profit o f $39.9 million, income before income tax ex pense of $40. 8 million, inc ome from continuing operations of $40. 2 million, net income of $40.2 million and net income a ttributa ble to compa ny of $40. 2 million or $1. 02 dil uted per s ha re on to tal revenues of $10 2.0 millio n for the s a me period a y ear a go . Non-G AAP net inc ome attributable to company for the s econd quarter of 2009 was $38. 7 million or $0. 90 per diluted s hare a ga ins t N on-G AAP net income a ttributable to compa ny for the second qua rter of 2009 wa s $42.3 million or $1.07 per diluted sha re for the s a me period a y ear ago. T he compa ny reported opera ting profit was $55.1 million a gainst opera ting profit was $42.0 million for the same period a yea r ago.

Page 13

S pec trumDNA, Inc . (OTC BB :S PXA)

New Y ork P ost and S pec trumDN A P artner to L aunc h E xclusiv e New Y ork Addictionary

S pectrumDN A I nc. has signed a contra ct with the N ew Y ork P os t to license its A ddictionary, a S aa S (softwa re-as-a-s ervice) user-generated dictiona ry tha t lets people c reate their own words and definitions . K nown for its eye-ca tching hea dlines , ground-brea king goss ip and pla y on words , the New Y ork P ost rea ches nearly 5. 5 million online uni que us ers per month and is a natura l fit for the Addic tiona ry s oci a l media a pplication. T he N ew Y ork Addic tiona ry will s erve as a n engine to inc reas e k ey metric s of us er engagement inc luding pa ge views , time spent on s ite, frequency of vis its, viral and word-of-mouth distribution a nd premium a d a nd s ponsors hip inv entory. T he a pplic ation is s et to launc h in Augus t and will pa ve the wa y for deriv ati ve products s uch a s greetin g c ards, ca lendars , games a nd book s featuring the top-ra ted words created by the community a t ny post. com. T he N ew Y ork P os t Addictionary joins a network of s ocia l media c ommunities which inclu des NB C 's 'T he O ffice' Addictiona ry, E ! E nterta i nment's Celebrity Addic tiona ry , C omedy C entra l's P olitica l Addic tiona ry , D ictionary. com's Addictiona ry and FE AR net's H orror Addictionary.

DADA S pA (C M: DA)

DAD A S pA R eports E a rnings R es ults for F irs t H a lf of 2009; R ea ffirms E arnings O utlook for F ull Y ear 2009

DAD A S pA reported ea rnings before interes t, ta x, depreciation a nd a mortis a ti on (E B I T D A) fell to E UR 10.7 milli on from E U R 14.4 mi llion for firs t half of 2009. T he earnings before interest a nd ta x (E B IT ) went down to E UR 4 million from E U R 10. 4 million. T he group's net fina nc ia l debt stood a t E UR 33. 1 million a t end-J une 2009 agains t E UR 31. 4 million a t end-D ecember 2008 and E UR 35. 2 million at end-Ma rc h 2009. F or the full y ea r 2009, the c ompany rea ffirmed its ea rnings outlook. F or the yea r, the company expec ts a rev enue of E UR 160 mil lion. In cas e of cons olida tion of D a da E nterta i nment as of J anua ry 1, 2009, the revenue is expec ted to rea ch some E UR 175 mill ion.

C hang yo u. c om L imited (Nas daqG S : C YOU)

Changy ou.com Limited to R elea s e D uke of Mount Deer in Changy ou.com Limited a nnounc ed that it expl a ins why it decided to postpone the release of D uke of Mount D eer (D MD ). P reviously , the 2010 company pla nned to release DM D in the fourth quarter of 2009. However, beca us e of bitterer competition in the ma rket a nd the necess ity to enrich the ga me's content, Changy ou.c om dec ided to ex tend its R &D to 35 months and releas e the game in the third quarter of 2010. B esides , C ha ngyou. com will promote a s equel of B l ade O nline (B O ), a 2.5D online fi ghting ga me, in the third qua rter of 2009, a nd Immortal F aith (I F ), a licensed 2D M MO R P G bas ed on a nc ient Chines e my ths and folk tales , in the fourth qua rter. A new expans ion pa ck of T ian L ong B a B u (TL B B ) will als o be la unched in the fourth qua rter and the compa ny is preparing for a n open beta test of the game's E uropean version.

B urs t Media Corporation (AIM:B R S T); C yberplex Inc . (TS X: C X)

Cy berplex Inc. (T S X: C X ) made an offer to a cquire B urs t Media C orporation (AIM : B R S T ) for a pproximately £10 million.

Cy berplex Inc. (TS X : C X ) made an offer to a cquire B urs t Med ia C orpora tion (AIM : B R S T ) for approxima tely £10 million in c ash on July 29, 2009. T he per s ha re cons ideration is £0. 12 repres enting a total equity v alue of approx imately $16. 5 million. T he B oard of D irectors of B urs t Media rejected the proposa l despite subs tantia l support from B urs t s hareholders. T he proposal ha d the support of a pprox ima tely 40% of B urst's sha res , or approximately 56% excluding sha res h eld by ma na gement of B urs t.

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

IAC /InterActiveC orp. a nnounc es an E quity B uy ba ck

T he B oa rd of Directors of IAC /I nterAc tiveC orp (N asdaqN M: I AC I) a uthoriz ed a s hare repurc ha se progra m on J uly 29, 2009. Under the program, I AC will repurchase up to 20,000, 000 s hares of its outsta nding common s toc k . IAC ma y purchase s hares over an indefinite period of time, depending on thos e fa ctors I AC management de ems relev ant a t a ny particula r time, i ncluding, without l imitation, mark et c onditions , sha re price, and future outlook . As of June 30, 2009, I AC had app rox imately $1. 9 billi on in cas h an d ma rketa ble sec urities , and $95.8 million in long-term debt.

B eyond Commerc e, Inc . (OT CB B: B Y OC)

B eyond Commerce I nc. E le cts B oa rd of Directors

B eyond Commerce Inc . a nnounc ed tha t Annua l S ha reholders M eeting wa s held on July 24, 2009. The meeting elected the members of the board of directors cons is ting of R obert J . M cN ulty , B arry F a lk, R onald L oveles s, M ich a el W ars insk e, and Murra y W illia ms.

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

IAC /InterActiveC orp. R eports U naudited C onsolidated IAC /I nterA ctiveC orp. reported unaudited c onsoli dated ea rnings resul ts for the sec ond quarter and s ix months ended J une 30, 2009. F or the E a rnings R esults for the S econd Q ua rter a nd S ix M onths quarter, the c ompany reported earnings from c ontinuing opera tion s of $42,593, 000, or $0.29 per di luted sha re, net ea rnings of $40, 397,000, E nded J une 30, 2009 net earnings attributable to I AC s ha reholders of $40, 813,000, or $0. 28 per diluted s ha re, ea rnings from continuing opera tions b efore income tax es of $64,736, 000, opera ting inc ome of $3, 907, 000 on revenue of $340, 045,000 compared to los s from continuing opera tions of $84,636, 000, or $0.60 per diluted s ha re, net los s of $422, 081, 000, net loss a ttributa ble to I AC s ha reholders of $421,597, 000, or $3.02 per diluted sha re, loss from c ontinuing operations before income taxes of $106, 910,000, opera ting loss of $6,434, 000 on rev enue of $354,164, 000 for the same period las t yea r. The company reported a djus ted net inc ome of $3, 270,000, or $0. 02 per s ha re compa red to a djusted net income of $25,500, 000, or $0.17 per s hare for the same period las t y ear.

S hutterfly, Inc . (Nas daqG S : S FL Y)

S hutterfly Inc . R ep orts U na udited C ons olidated E arnings R es ults for the S econd Q ua rter a nd S ix Months E nded J une 30, 2009; P rov ides E a rnings G uidance for the Thi rd Q uarter and Full Y ear of 2009

W izz ard S oftware Co rporation (A ME X: WZE )

W izz ard M edia La unches S ec ond P hase of P odc ast Monetization V ia Apps

Openwave S ys tems Inc . (Nas daqG S : OPW V)

O penwa ve S y stems Inc. R eports U na udited C onsolida ted O penwa ve S y stems Inc. reported una udited cons olida ted earnings res ults for the fourth qua rter and y ear ended J une 30, 2009. F or the E a rnings R esults for the F ourth Q uarter and Y ear E nded quarter, the c ompany reported net los s from continuing opera tions and net los s of $3, 444,000 or $0. 04 per bas ic and diluted sha re on tota l revenues of $47, 937, 000 compa re d to net los s from continuing opera ti ons of $18,051, 000 or $0. 21 per ba s ic a nd diluted share and net J une 30, 2009 income of $2,157, 000 or $0. 03 per ba sic a nd diluted s ha re on total revenues of $53,487, 000 for the same period a yea r ago. T he c ompany reported operating los s from continuing operations of $2, 365, 000 a nd pre-tax los s from continuing operations of $2,537, 000 c ompared to opera ting loss from continuing operations of $15, 881,000 a nd pre-tax los s from continuing opera tions of $16,532, 000 for the same perio d a yea r ago. O n a Non -G AAP ba s is , the compa ny reported net loss of $278,000 compared to net los s of $1,90 4,000 for the s a me period a y ea r a go. Net c as h provided by opera ting activities was $4,477, 000 a nd purc ha ses of property a nd equipment, net of $1, 161, 000 c ompared to net cas h us ed in operating activities wa s $14, 390, 000 a nd purcha s es of property a nd equipment, net of $1, 296, 000 for the s ame period a y ea r a go.

Figure 13. Key Developments Source. Capital IQ

F or the six months, the compa ny reported ea rnings from continuing opera tions of $12, 711,000, or $0.09 per diluted share, net earnings of $11 S hutterfly I nc . reported una udited c onsolidated ea rnings results for the s econd quarter and s ix months ended J une 30, 2009. F or the quarter, the compa ny reported net los s of $5, 655, 000 or $0.22 per bas ic and diluted s hare on net revenues of $38,858, 000 compared to net loss of $4,017, 000 or $0. 16 per ba sic and diluted s hare on net revenues of $35, 447,000 for the s a me period a y ear ago. T he company reported los s from opera tions of $9, 408, 000 a nd loss before income ta x es of $9,152 ,000 compared to loss from operations of $7, 939,0 00 a nd loss be fore income taxes of $7,284, 000 for the sa me period a yea r a go. Adjus ted E B I TD A wa s $0. 2 million, compa red to $0. 4 million in the second quarter of 2008. O n a N on-G AAP basis , the compan y reported opera ting los s of $6,090, 000 a nd net los s of $3, 527,0 00 or $0.14 per diluted sha re compa red to opera ting los s of $5, 394,000 a nd net loss of $2, 891, 000 or $0.12 per diluted share for the s ame period a y ea r a go. F ree cas h flows was nega tive $2,735, 000 compared to free ca s h flows wa s negative $4,835, 000 for the s a me period a year a go. P urchases of property a nd equipment were $1,826, 000 compared to purc ha s es of property a nd equipment of $3, 840,000 for the s ame period a y ear ago. W izza rd M edia announced the la unch of the much a nticipated s ec ond pha s e of its new podca st network monetiz ation strategy with the a pprova l of the Ha waii S urf S ess ion R eport App, the firs t W izz ard N etwork c ustomized P odca s t App currently for s a le through A pple's App S tore. T he P odca s t App, developed by W iz zard Media , c an be c ustomized for a podca s t produc er in less tha n 30 minutes to inc lude bonus ma teria l, s how extra s, interactive forms of communica tion between a udience a nd hos t, a s well a s other informa tion and entertainment. W izza rd plans to offer its top 1, 000 podca st producers , bas ed on a udience s ize, a cus tomiz ed a pp; eventua lly opening this new produc t to the thous a nds of podc as ts ac ross the W izz a rd N etwork. W iz zard will provide the P odc ast App a s a free tool to p odcas ters on the W iz za rd Network a nd share in the revenue generated. All Apps submitted to the App S tore require App le approv al to be a vailabl e for s ale on a worldwide ba s is a nd will generally rang e in price from $0.99 to $4. 99 ea ch.

Page 14

VALUATION MMOG companies lead market-cap charts: Fifteen companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 14). Fifty-six of the 91 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 L td. Neteas e.c om Inc . S handa Interac tive Entertainment L td. IA C/InterA c tiveCorp. Modern Times G roup Mtg A B S ohu.c om Inc . Changyou.c om L imited Open Tex t Corp. Giant Interactiv e Group, Inc . Gree, Inc . Perf ec t World Co., L td. Chines e Gamer International K ings of t Co. L td. Mix i, Inc . V alueClick Inc . United Online Inc . NEOWIZ Games Corporation NetDragon WebS of t, Inc . S hutterf ly, Inc . CDC Corp. S K Communic ations Co., L td. Gamania Digital Entertainment Co. , GigaMedia L td. GungHo Online Entertainment, Inc . Openw ave S ys tems Inc . The9 L imited XING A G A c toz S of t Co., L td. OA O R B C Inf ormation S y s tems DA DA S pA Tree.Com, Inc. GameOn Co L td. Cyberplex Inc. Y edangOnline Corp. NeuLion Incorporated K A B Dis tribution Inc . My riad G roup A G HanbitS of t, Inc . TheS treet.com, Inc . S park Netw orks , Inc . G eoS entric Oy j Frogs ter Interactiv e Pictures A G Eolith Co. L td. PNI Digital Media Inc . Fluid Mus ic Canada, Inc . G ravity Co., L td Ngi Group Inc . Webz en Inc . DigitalTow n, Inc . A Q Interactiv e, Inc . S ocialw is e, Inc . NeXplore Corporation Northgate Tec hnologies L imited DXN Holdings B hd Dolphin Digital Media, Inc . Wiz z ard S of tw are Corporation Y nk K orea Inc . L ookS mart, L td. B roadWebA s ia Inc . B eyond Commerc e, Inc . A c celeriz e New Media, Inc . J umbuck Entertainment Pty L td. Quepas a Corp. UOMO Media, Inc L ingo Media Corporation IA S Energy, Inc . S pectrumDNA , Inc . B right Things plc Worlds .c om Inc . V OIS , Inc . MOK O. mobi L imited DigitalPos t Interactiv e, Inc . is eemedia Inc . Ex tens ions , Inc . CornerW orld Corporation Magnitude Inf ormation S ys tems Inc. Wooz yFly, Inc . S NA P Interactiv e, Inc . B etaw av e Corporation Wy nds torm Corporation B igs tring Corp. L iveWorld Inc . Unis erve Communic ations Corp. A s s oc iated Media Holdings Inc . CLICK ER Inc . The Parent Company China G atew ay Corporation Total S port Online A S S NM Global Holdings S ocial Media V enures , Inc . Dibz International, Inc .

2041.6 1997. 0 1838. 4 1807. 6 1743.2

537.3 419.4 411.7 324.7 316.5 275. 8 265.5 252.8 222.4 220.9 213.9 167.2 145. 7 141.6 104.7 104.0 102.6 102.0 85.6 83.0 82.4 78.4 64.3 51.2 51.1 48.5 48.0 47.5 44.2 43.9 42. 2 40. 3 38. 3 34.7 32.9 30.7 28. 5 26. 3 25. 3 24. 4 23.3 20.5 19.5 17.2 15.5 15.4 15.1 14.6 13.3 8. 0 6. 8 5. 8 5. 2 5. 0 4. 7 4. 0 3. 8 3. 6 3. 2 2. 7 2. 6 2. 2 2. 0 1. 8 1. 4 1. 1 1. 0 0. 6 0. 4 0. 4 0. 3 0. 1 0. 0 0. 0 0. 0 0

Figure 14. Market Cap Ranking Source. Capital IQ

500

768.9

2448. 4 2358.2

2787.4

3332. 4

1109.4 1096.9 1082. 6 1011.4

1,000

1,500

2,000

2,500

3, 000

3, 500

4,000

Page 15

TEV/Revenue (LTM) averages 4.9x: The overall average TEV/Revenue (LTM) multiple for our group is 5.8x (up from 4.9x last week) (Figure 15). However, this is skewed by three companies with multiples greater than 30x trailing revenue: NeXplore Corporation (NXPC:OTCBB) at 49.2x, Bigstring Corporation (BSGC:OTCBB) at 37.4x and Dolphin Digital (OTCBB: DPDM) at 34.0x. The median is only 2.0x. Note that we exclude multiples greater than 50x. Twenty-six companies have multiples under 1.5x

T E V/L T M R evenue (x) 60. 0 49.2

50. 0

40. 0

37.4 34.0

30. 0 23.5 22.2 20.9 18.5

20. 0

15.6 14.3 12.7

10. 0 A v erage, 5. 8

0. 0

8.4 6.8 7.3 7.6 7.7 7.8

AQ Intera ctive, Inc . U nis erve C ommunications C orp. C LIC K E R Inc. S NAP Intera ctive, Inc. T he P a rent C ompany N orthgate T echnologies L imited P erfect World C o., Ltd. T ree.C om, Inc. DXN Holdings B hd G a meO n C o Ltd. O penwave S y s tems Inc . IAC /InterAc tiveC orp. J umbuck E nterta inment P ty L td. DADA S pA C DC C orp. S pa rk N etwork s , Inc . G igaMedia Ltd. S N M G loba l Holdings H anbitS oft, Inc . K AB Dis tribution Inc . United O nline Inc . C y berplex Inc . Ac toz S oft C o. , Ltd. V alueC lic k Inc . Modern T imes G roup Mtg AB S hutterfly , Inc . S K C ommunica tions C o., Ltd. is eemedia Inc . G a mania Digital E ntertainment C o., Ltd. Y edangO nline C orp. G ungH o O nline E ntertainment, Inc. My riad G roup AG P N I Digital Media Inc. N E O WIZ G ames C orporation O pen T ex t C orp. MO K O .mobi L imited XIN G AG Y nk K orea Inc . B ey ond C ommerc e, Inc. E olith C o. Ltd. NetDra gon WebS oft, Inc . C ornerWorld C orporation S ohu.com Inc . NeuLion Inc orporated S ocial Media V enures , Inc . T otal S port O nline AS Wiz z ard S oftware C orporation Acceleriz e New Media , Inc . F luid Mus ic C a nada , Inc. C ha ngy ou.com L imited Mix i, Inc . DigitalP os t Intera ctive, Inc. G eoS entric O y j K ings oft C o. Ltd. Lingo Media C orporation F rogs ter Intera ctiv e P ic tures AG As s ociated Media Holdings Inc . C hines e G amer Interna tional B right T hings plc T encent Holdings Ltd. UO MO Media, Inc Dolphin Digital Media, Inc. B igs tring C orp. NeX plore C orporation

5.0 3.6 3.8 3.9 4.6 4.6 4.6 2.6 2.6 2.9 3.0 3.0 3.1 3.3 3.3 1.4 1.5 1.6 1.6 1.7 1.8 2.0 2.0 2.1 2.3 2.3 1.1 1.2 1.3 1.3 0.9 0.9 1.0 1.1 0.6 0.7 0.8 0.4 0.4 0.5 0.5 0.6 0.1 0.2 0.2 0.2 0.2 0.2

Figure 15. TEV/Revenue Ranking Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 16 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (19), trading at an average multiple of 12.7x (down from 13.9x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 7.8x revenue (up from 5.2x last week) (Figure 17). Ten of the companies are Canadian (average 5.5x revenue). Average TEV/LTM Revenue - By Exchange

Average TEV/LTM Revenue - By Country 25.0

20.9

20.0

(x)

15.0

5.5 4.6 2.3

0.9 0.8

2

1

1

India

8

Russia

6

Italy

1

0.5 0.2 0.0 Malaysia

1

Sweden

10

Hong Kong

3

South

10

1 1

Australia

1

Japan

39

Switzerland

2

Canada

1

Norway

RTS

2.1 2.0 1.8 1.6

0.0 China

1 5

BSE

0.4 0.20.0

# Companies

Figures 16 & 17. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ

7.8 7.6 7.2

5.0 NasdaqGM

CM

1 1

KLSE

0.8 0.5

7.8

Taiwan

6 14 2

OM

ASX

TSE

KOSE NasdaqGS

OSE

1 5

1.8 1.6

United

4 2 1

2.0

Finland

1 1 4

SWX

4.6 4.23.3 2.8 2.3 2.1 2.0 2.0

United

2 2

HLSE

XTRA

SEHK

1 19 11 3

GTSM

OTCPK

AIM

0.0

OTCBB

5.0

8.6 10.0

TSX

7.8

AMEX

(x) 10.0

OTCNO TSXV

12.7 11.8 11.3 10.38.6

15.0

# Companies

20.9

20.0

Germany

25.0

1

1

1

1

Page 16

TEV/EBITDA (LTM) averages 10.9x: The average multiple for the 33 companies with positive EBITDA (and multiples under 100x) is 10.9x LTM EBITDA (up from 10.0x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 45.8x multiple (Figure 18). Twelve of the companies have EBITDA multiples under 7x. The median multiple is 9.6x (vs. 9.4x last week). T E V/L T M E B IT DA (x) 50. 0

45. 8

45. 0 40. 0 33. 1

35. 0 30. 0

25. 8

25. 0

20. 9 21. 2 21. 3

20. 0

T enc ent Holdings L td.

C hines e G amer International

S K C ommunic ations C o. , L td.

Mix i, Inc .

IAC /InterAc tiveC orp.

K ings oft C o. L td.

S hutterfly , Inc.

C yberplex Inc .

G amania Digital E ntertainment C o. , Ltd.

C hangy ou. c om L imited

G ungH o O nline E ntertainment, Inc .

XING AG

12. 1 12. 6 12. 7 11. 0 11.5 12.0 9. 7 10. 3 10. 4

C DC C orp.

Y edangO nline C orp.

9. 7

O pen T ex t C orp.

9. 6

Modern T imes G roup Mtg AB

9. 3

K AB Dis tribution Inc .

8. 9

S ohu. c om Inc .

J umbuck E ntertainment P ty Ltd.

6. 7

8. 6

V alueC lic k Inc .

AQ Interac tive, Inc .

5. 9

8. 4

NetDragon WebS oft, Inc .

P erfec t World C o. , L td.

Ngi G roup Inc .

5. 5

Actoz S oft C o. , L td.

1.3

4. 4

U nited O nline Inc .

0.8

3. 7

S park Network s , Inc .

0. 7

0. 0

2. 3

DXN Holdings B hd

0. 2

S NAP Interac tive, Inc .

0. 1

1.8

O AO R B C Information S y s tems

5. 0

G ameO n C o L td.

10. 0

DADA S pA

A verage, 10. 9

NE O WIZ G ames C orporation

15. 0

Figure 18. TEV/EBITDA Ranking Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 19 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (19). On a geographic basis, the United States has the most companies (39), trading at an average of 8.9x EBITDA (Figure 20). Ten of the companies are Canadian (average 10.9x EBITDA). Average TEV/LTM EBITDA - By Exchange

Average TEV/LTM EBITDA - By Country

30.0 25.0

25.0 22.6

25.0

20.0 22.6

1

2

19

1

1

# Companies

Figures 19 & 20. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ

Switzerland

2

1

1

Malaysia

RTS

SWX

1

Australia

OTCBB

5

Italy

ASX

2

Japan

KLSE

14

0.2

United States

AMEX

1

1.8 Germany

CM

4

3.7

Sweden

TSE

1

5.5

Canada

XTRA

6

8.9 7.3

Hong Kong

NasdaqGS

2

9.6

South Korea

OM

3

11.0 10.9 10.3

China

TSX

1

OSE

0.0

KOSE

5.0

GTSM

0.0 0.0

SEHK

4.4 3.7 1.8 0.7 0.2

Russia

10.0

Taiwan

6.3 5.5

5.0

# Companies

12.9

(x)

12.9 11.5 11.2 10.3 10.2 9.6

10.0

0.0

16.1

15.0

15.0

BSE

(x)

20.0

3

10

8

1

10

1

2

39

6

1

1

2

0.0

Page 17

P/E (LTM) averages 16.7x: The average multiple for the 30 companies with positive earnings (and multiples under 100x) is 10.0x LTM EPS (from 16.7x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 58.4x multiple (Figure 21). Ten of the companies have P/E multiples under 10x. The median is just 13.9x.

P /E L T M (x) 70.0 58.4

60.0 53.2 50.0 42.8 40.0

34.1 28.7 29.3

30.0

31.2

23.6 23.7 24.4 24.7 19.9

20.0 9.5 10.5 10.6

A verage, 10.0

T encent H oldings Ltd.

Mix i, Inc.

C hines e G amer International

Worlds .com Inc.

O pen T ex t C orp.

G amania Digital E ntertainment C o., Ltd.

NE O W IZ G ames C orporation

K ings oft C o. Ltd.

Actoz S oft C o., Ltd.

IAC /InterActiveC orp.

DADA S pA

XING AG

S park Network s , Inc.

NetDragon W ebS oft, Inc.

DXN H oldings B hd

C hangy ou.com Limited

S NAP Interactive, Inc.

S ohu.com Inc.

Neteas e.com Inc.

Modern T imes G roup Mtg AB

P erfect World C o., Ltd.

6.1

G ameO n C o Ltd.

4.6

Y edangO nline C orp.

3.3

G igaMedia Ltd.

3.3

C y berplex Inc.

3.0

J umbuck E ntertainment P ty Ltd.

2.7 S handa Interactive E ntertainment Ltd.

G ravity C o., Ltd

2.5 T he9 Limited

0.0 0.0

2.0 G iant Interactive G roup, Inc.

10.0

15.7 13.8 14.0 15.0 12.0 12.3

Figure 21. P/E Ranking Source. Capital IQ

P/E (LTM) by country/exchange: Figure 22 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (19), trading at an average multiple of 18.7x. On a geographic basis, the United States has the most companies (39), trading at an average of 19.2x earnings (Figure 23). Ten of the companies are Canadian (average 20.3x EPS). Average P/E - By Exchange 35.0

36.1

35.0

30.0 32.7 32.6

25.0

OM

NasdaqGS

2

1

14

4

2

1

1

5

# Companies

Figures 22 & 23. P/E Ranking (Exchange, Country) Source. Capital IQ

4.6

0.0

0.0 Switzerland

AMEX

19

6.1

5.0

Malaysia

OTCBB

2

NasdaqGM

XTRA

6

NYSE

KOSE

1

KLSE

CM

5

TSX

TSE

3

ASX

SEHK

2

12.3

Australia

2.0 0.0

GTSM

# Companies

4.6

Sweden

5.0

15.9 13.9

10.0

China

6.1

19.9 19.2

South Korea

10.0

12.3 11.6 9.5

20.3

15.0

United States

15.7

23.6

Germany

15.0

19.9 18.7

27.5

20.0

Canada

21.2

Italy

23.6

20.0

(x)

(x)

25.0

Taiwan

30.0

0.0

Average P/E - By Country 32.6

Japan

40.0

6

3

1

10

2

39

8

10

1

2

1

1

Page 18

UPCOMING EVENTS

E arnings Calendar C ompany

D ate & T ime

Qu arter

C onf C all D etails

L ook S ma rt, L td. (N asda qG M :L O O K )

M onda y, Augus t 03, 2009 5:00 P M (E D T)

Q 2 2009

877-941-9205

V a lueClic k Inc . (N a sda qG S : V C L K )

T uesda y , Augus t 04, 2009 4:30 P M (E DT )

Q 2 2009

818-575-4677

C yberplex I nc . (TS X : C X )

T hursda y , Augus t 06, 2009 4:30 P M (E DT )

Q 2 2009

800-501-6064

P NI D igita l Media I nc. (T S X V :P N )

W ednes da y, Augus t 12, 2009 4: 30 P M (E D T)

Q 3 2009

888-300-8196

Open T ext C orp. (Na s da qG S : O TE X )

T hursda y , Augus t 20, 2009 5:00 P M (E DT )

Q 4 2009

416-644-3415

Figure 24. Earnings Calendar Source. Company reports

Page 19

C omparable C ompany Analys is > Web 2.0 Pric e P erformanc e C ompany Name

C urrenc y

Tic ker

E xc hange

US D Market C ap ($m)

A ccelerize New Media, Inc. A ctoz S oft C o. , L td. A Q Interactive, Inc. A s s ociated Media H oldings Inc. B igs tring C orp. B eta wave C orpora tion B eyond C ommerce, Inc. B right T hings plc B roadW ebA s ia Inc. C DC C orp. C ha ngyou.com Limited C hina G a tewa y C orporation C hines e G a mer International C LIC K E R Inc. C ornerW orld C orpora tion C yberplex Inc. DADA S pA DXN Holdings B hd Dibz Interna tional, Inc. DigitalP os t Intera ctive, Inc. DigitalT own, Inc. Dolphin Digital Media, Inc. E olith C o. L td. E xtens ions , Inc. F luid Mus ic C anada, Inc. F rogs ter Intera ctive P ictures AG G amania Digita l E ntertainment C o., L td. G ameO n C o L td. G eoS entric Oyj G ia nt Interactive G roup, Inc. G igaMedia L td. G ra vity C o., Ltd G ree, Inc. G ungH o Online E ntertainment, Inc. H anbitS oft, Inc. IAC /InterA ctiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E ntertainment P ty Ltd. K AB Dis tribution Inc. K ings oft C o. L td. L ingo Media C orpora tion L iveW orld Inc. L ookS mart, L td. Ma gnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MO K O .mobi L imited Myriad G roup AG NE O W IZ G ames C orporation NetDra gon W ebS oft, Inc. Netea s e. com Inc. NeuLion Incorpora ted NeXplore C orpora tion Ngi G roup Inc. Northgate T echnologies Limited O pen T ext C orp. O penwa ve S ys tems Inc. P erfect W orld C o., Ltd. P NI Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S ha nda Interactive E nterta inment L td. S hutterfly, Inc. S K C ommunications C o. , L td. S NA P Intera ctive, Inc. S NM G loba l H oldings S ocial Media V enures , Inc. S ocialwis e, Inc. S ohu.com Inc. S pa rk Networks , Inc. S pectrumDNA, Inc. T encent H oldings Ltd. T he P a rent C ompany T he9 L imited T heS treet.com, Inc. T ota l S port Online A S T ree.C om, Inc. U nis erve C ommunica tions C orp. U nited O nline Inc. U OMO Media, Inc V alueC lick Inc. V OIS , Inc. W ebzen Inc. W izzard S oftwa re C orporation W orlds .com Inc. W oozyF ly, Inc. W ynds torm C orpora tion XING A G Y eda ngOnline C orp. Y nk K orea Inc.

US D KR W JPY US D US D US D US D GB P US D US D US D US D TWD US D US D C AD E UR MY R US D US D US D US D KR W 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 HK D C AD US D US D US D JPY SEK AU D C HF KR W HK D US D C AD US D JPY INR US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D HK D US D US D US D NO K US D C AD US D US D US D US D US D US D US D US D US D E UR KR W KR W

AC L Z A052790 3838 AS MH BSGC B W AV B Y OC AIM:B G T BWBA C H IN.A C Y OU CGWY G T S M:3083 CLK Z CW R L T S X: C X C M:DA DXN DIB Z DG LP DG T W DP DM A041060 E XT I T S X: F MN FR G 6180 3812 G E O1V GA G IG M GR VY T S E :3632 3765 A047080 IA C I IA S C . A IE E AS X: J MB T S X: K AB 3888 T S XV :LM LV W D LO OK MAG Y 2121 MT G B MK B MY R N A095660 777 NT E S T S X: NL N NXP C 2497 590057 OT E X OP W V PWRD T S XV :P N QP S A R BCI S NDA S F LY A066270 S TVI S NMN S MV I S CLW S O HU LO V S P XA 700 K IDS . Q NC T Y TS CM T OS O TR E E T S XV :US S UNT D UO MO V CLK V O IS W ZE N W ZE W DDD W ZY F W Y ND O1B C A052770 A023770

OT C B B K OS E TS E OT C P K OT C B B OT C B B OT C B B A IM OT C P K Nas da qG S Nas da qG S OT C P K GTS M OT C B B OT C B B TS X CM K LS E OT C P K OT C B B OT C B B OT C B B K OS E OT C P K TS X XT R A GTS M TS E H LS E NY S E Nas da qG S Nas da qG M TS E OS E K OS E Nas da qG S OT C B B T S XV AS X TS X S E HK T S XV OT C P K Nas da qG M OT C B B TS E OM AS X S WX K OS E S E HK Nas da qG S TS X OT C P K TS E BSE Nas da qG S Nas da qG S Nas da qG S T S XV OT C B B R TS Nas da qG S Nas da qG S K OS E OT C B B OT C P K OT C P K OT C B B Nas da qG S A ME X OT C B B S E HK OT C P K Nas da qG S Nas da qG M O T C NO Nas da qG M T S XV Nas da qG S OT C B B Nas da qG S OT C B B Nas da qG M A ME X OT C B B OT C B B OT C P K XT R A K OS E K OS E

15.5 167.2 34.7 0.6 1.4 2.0 17.2 5.8 19.5 324.7 2, 041.6 0.3 1, 109.4 0.4 3.2 102.6 141.6 26.3 0.0 4.0 38.3 25.3 48.0 3.6 44.2 48.5 275.8 104.0 51.1 1, 838.4 265.5 43.9 1, 807.6 252.8 78.4 2, 787.4 8.0 3.8 15.4 83.0 1, 096.9 13.3 1.1 20.5 2.7 1, 082.6 2, 448.4 4.7 82.4 537.3 419.4 5, 670.2 85.6 30.7 42.2 28.5 1, 997.0 222.4 1, 743.2 47.5 15.1 145.7 3, 332.4 411.7 316.5 2.2 0.0 0.0 32.9 2, 358.2 51.2 6.8 24,360. 7 0.4 220.9 64.3 0.1 104.7 1.0 768.9 14.6 1, 011.4 5.0 40.3 24.4 5.2 2.6 1.8 213.9 102.0 23.3

H igh L ow Average Media n

Figure 25. Price Performance Source. Capital IQ

678.1

C urrent P ric e 0.56 23, 700 60, 400 0.01 0.03 0.07 0.38 0.02 0.23 3.06 37.12 0.02 433.00 0.01 0.05 1.70 6.14 0.40 0.00 0.05 1.40 0.49 810.00 0.08 0.91 13.50 59.60 101, 900 0.04 8.14 4.87 1.58 7, 650 209, 000 4, 370 18.47 0.11 0.08 0.38 1 8 1.15 0.04 1.20 0.01 667,000.00 269.00 0.07 4.14 31,200.00 6.15 44.15 0.81 0.55 32,250.00 39.15 37.95 2.67 35.84 1.50 1.19 1.05 49.91 16.20 9,230.00 0 0.01 0.40 0.76 61.63 2 0 105 0.02 8.66 2.10 0.03 9.70 0.05 9.20 0.17 11.63 0.01 3.40 0.51 0.10 0.15 0.10 28.50 7, 940 5, 330

1 Wk

1 Mth

3 Mth

6 Mth

1 Yr

52 Week

-1.8% -6.7% -1.5% -30.0% -8.5% -36.4% 5. 8% -5.1% -22.8% -4.1% -10.9% -25.0% -4.4% -41.2% 0. 0% -2.9% 0. 6% 1. 3% -90.0% -11.5% -30.0% 36.1% 3. 2% -60.0% 2. 2% 12.2% -2.9% -4.8% 33.3% -0.4% -2.2% 2. 6% 11.4% -1.9% -2.9% 3. 1% -24.0% -5.9% 8. 6% 0. 0% 9. 2% 4. 5% -12.5% 0. 8% -20.0% -4.0% 6. 7% -13.3% -4.8% 1. 0% 1. 5% 4. 7% -1.2% 0. 0% -3.4% 5. 0% -1.5% -10.1% 2. 5% 0. 0% 20.2% 0. 0% -12.4% 3. 3% -2.7% -55.6% 25.0% 25.0% -0.6% -3.1% 4. 6% -6.7% 1. 1% -25.0% -3.6% 1. 9% 0. 0% -9.3% -55.0% 3. 7% 65.9% -1.6% -14.3% -2.7% 4. 1% -9.1% 0. 0% 0. 0% -3.5% -1.0% -8.1%

40.0% -0.4% -13.3% -30.0% -15.6% -12.5% -13.4% 18.7% -22.8% 97.4% -9.3% 650.0% -0.9% 85.2% -16.7% 3.0% -1.9% 3.9% -90.0% 63.6% -31.7% 0.0% 11.7% -46.7% 15.2% 19.2% 2.6% -10.2% 0.0% -0.1% -15.6% 45.0% 6.0% -21.3% -0.6% 13.6% -33.3% 6.7% -2.6% 1.6% 44.7% -4.2% -30.0% 0.0% -35.5% 16.8% 15.5% -13.3% -17.0% -1.4% 21.5% 27.5% 11.0% -21.4% -10.5% 1.6% 3.1% 17.1% 19.0% NM 32.2% 16.7% -8.0% 16.9% -6.4% -69.2% -28.6% 1900. 0% 26.5% -1.7% 5.1% -39.1% 15.6% -50.0% -11.2% 1.9% 0.0% 1.6% -43.8% 38.6% 21.4% 8.0% -49.6% 0.0% 0.0% -33.3% NM 150.0% -6.2% -8.5% -21.4%

27.3% 67.5% 28.6% 833.3% 35.0% -36.4% -73.4% -20.9% -54.9% 155.0% 15.5% 650.0% 92.9% 11.1% -50.0% 14.1% -7.9% 1.3% -90.0% 217.6% -40.4% -16.9% -8.5% -46.7% 65.5% 49.2% 72.5% 5.5% 0.0% -2.4% -15.9% 61.2% 38.6% 51.8% -2.6% 15.2% -52.5% -20.0% -18.3% 8.5% 121.8% 30.7% -73.1% -5.5% -40.0% 47.2% 22.0% -12.2% -9.0% 3.8% 17.6% 47.3% 50.0% 22.2% -12.4% -1.6% 15.3% 122.5% 97.9% 0.0% 48.8% 6.6% -0.6% 31.3% -5.0% -69.2% 25.0% 3900. 0% 110.8% 8.6% -4.6% -33.3% 51.6% 20.0% -7.4% 2.9% 0.0% 8.4% 12.5% 74.9% 70.0% 11.0% 87.5% 23.6% -10.5% -41.2% 0.0% 11.1% -5.0% -9.9% -11.6%

60.0% 110.7% 72.6% 180.0% 58.8% -65.0% -57.7% 40.2% -77.2% 287.3% NM 650.0% 379.5% -83.3% -87.8% 385.7% 2. 3% 12.7% -98.0% 170.0% -53.3% -30.0% 57.3% -84.6% 127.5% 173.3% 176.6% -16.1% 33.3% 35.7% -25.9% 120.1% 26.2% 96.1% 39.4% 25.6% 280.0% 0. 0% -20.8% 40.7% 186.8% 9. 5% -30.0% -12.4% -75.1% 30.8% 88.1% 30.0% -24.7% 169.0% 126.1% 132.2% 113.2% -38.9% -15.8% 0. 4% 8. 3% 265.8% 142.0% -10.2% -35.3% 238.7% 71.5% 145.1% 24.7% -80.0% 400.0% -70.4% 68.7% 55.8% 1. 6% 40.0% 116.1% -50.0% -42.7% -23.1% -25.0% 144.3% -43.8% 50.3% 112.5% 86.1% -20.0% 117.9% -28.2% -54.5% 0. 0% -20.0% -6.6% 9. 1% 38.1%

-13. 8% 191. 9% -60. 0% -30. 0% -68. 2% -72. 0% -87. 9% 7.9% -84. 7% 12.5% NM -50. 0% 463. 9% -99. 3% -87. 5% 261. 7% -43. 7% -7.0% -98. 0% -32. 5% -60. 0% NM -3.0% NM -43. 1% 162. 6% 148. 5% -31. 6% -42. 9% -4.6% -59. 2% 9.7% NM 5.6% 10.6% -48. 7% -54. 4% -60. 0% -29. 6% -8.6% 140. 2% -34. 7% -82. 5% -58. 5% -70. 0% 0.2% -25. 3% 58.5% -58. 4% 165. 5% -31. 8% 81.9% NM 0.0% -59. 3% -87. 1% 26.5% 105. 4% 34.0% -55. 8% -53. 1% -86. 2% 78.6% 77.8% -37. 2% -63. 6% -99. 6% 60.0% -66. 3% -18. 3% -41. 0% NM 55.9% -99. 3% -64. 4% -66. 2% -40. 0% NM -77. 5% -17. 4% -62. 2% -1.9% -85. 3% 28.8% -65. 3% -72. 2% NM -83. 3% -5.0% -12. 6% -43. 1%

-15.2% -34.2% -61.8% -72.0% -73.0% -79.5% -88.5% -28.8% -92.1% -21.9% -23.3% -57.1% -16.6% -99.4% -93.7% -14.6% -50.7% -10.1% -98.0% -46.0% -77.0% -56.6% -30.2% -92.1% -49.4% -3.6% -13.4% -37.7% -42.9% -24.5% -63.6% -20.6% -3.2% -25.3% -34.2% -63.4% -59.3% -68.0% -38.7% -29.7% -3.1% -40.1% -86.0% -64.4% -80.0% -27.6% -31.1% -35.0% -58.6% -25.7% -33.9% -1.5% -25.7% -62.1% -74.7% -87.5% -2.9% -14.7% -3.7% -58.6% -65.6% -86.6% -23.2% 0.7% -39.3% -81.5% -99.7% -92.0% -71.9% -30.0% -44.2% -76.7% -2.2% -99.3% -66.3% -71.4% -40.0% -25.8% -82.0% -24.9% -84.0% -16.9% -85.9% -27.3% -71.0% -73.7% -96.3% -83.3% -20.8% -36.0% -57.0%

65.9% -90.0% -4.5% -1.6%

1900. 0% -90.0% 29.7% 0.0%

3900. 0% -90.0% 74.7% 8.5%

650.0% -98.0% 58.6% 30.0%

463. 9% -99. 6% -10.7% -35. 9%

0.7% -99.7% -49.4% -45.1%

Page 20

C omparable C ompany Analys is > Web 2.0 Valuation Multiples C ompany Name

S ec tor

C ountry

P rimary E xc hange

Ticker

Accelerize New Media, Inc. Actoz S oft C o., Ltd. AQ Intera ctive, Inc. As s ocia ted Media Holdings Inc. B igs tring C orp. B etawave C orpora tion B eyond C ommerce, Inc. B right T hings plc B roadW ebAs ia Inc. C DC C orp. C hangyou.com Limited C hina G atewa y C orpora tion C hines e G amer Interna tional C L IC K E R Inc. C ornerW orld C orporation C yberplex Inc. DA DA S pA DXN Holdings B hd Dibz Interna tiona l, Inc. DigitalP os t Interactive, Inc. DigitalT own, Inc. Dolphin Digital Media, Inc. E olith C o. L td. E xtens ions , Inc. F luid Mus ic C a nada, Inc. F rogs ter Interactive P ictures A G G amania Digital E ntertainment C o., Ltd. G ameO n C o Ltd. G eoS entric Oyj G iant Interactive G roup, Inc. G igaMedia Ltd. G ravity C o., Ltd G ree, Inc. G ungH o O nline E nterta inment, Inc. Ha nbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E ntertainment P ty L td. K A B Dis tribution Inc. K ings oft C o. Ltd. Lingo Media C orpora tion LiveW orld Inc. LookS ma rt, L td. Magnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MOK O .mobi Limited Myriad G roup AG NE OW IZ G ames C orporation NetDra gon W ebS oft, Inc. Netea s e.com Inc. NeuLion Incorporated NeXplore C orporation Ngi G roup Inc. Northgate T echnologies Limited O pen T ext C orp. O penwave S ys tems Inc. P erfect W orld C o., Ltd. P N I Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S handa Interactive E nterta inment Ltd. S hutterfly, Inc. S K C ommunications C o., Ltd. S N AP Interactive, Inc. S N M G lobal Holdings S ocial Media V enures , Inc. S ocialwis e, Inc. S ohu.com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings Ltd. T he P a rent C ompany T he9 L imited T heS treet.com, Inc. T otal S port Online AS T ree.C om, Inc. Unis erve C ommunications C orp. United Online Inc. UO MO Media, Inc V a lueC lick Inc. V O IS , Inc. W ebzen Inc. W izzard S oftware C orporation W orlds .com Inc. W oozyF ly, Inc. W ynds torm C orporation XIN G AG Y eda ngO nline C orp. Y nk K orea Inc.

Direct Marketing G aming G aming Mobile Ins ta nt Mes s aging Media S ocial Networking S ocial Networking S ocial Networking G aming G aming Mobile G aming Direct Marketing C ontent A dvertis ing S ocial Networking S ocial Networking S NS Apps C ontent S ocial Networking S ocial Networking G aming C ontent Media G aming G aming G aming Mobile G aming G aming G aming S ocial Networking Media G aming Media V ideo C ontent S ocial Networking C ontent G aming L earning S ocial Networking Direct Marketing S ocial Networking S ocial Networking Media S ocial Networking Mobile G aming G aming G aming V ideo C ontent Media Direct Marketing C ollabora tion Mobile G aming Digita l Ima ging S ocial Networking Media G aming Digita l Ima ging S earch Dating Media S ocial Networking S ocial Networking G aming S ocial Networking Media P orta l Media G aming Media Media P orta l S ocial Networking Media Media Media S ocial Networking G aming P odca s ting C ontent S ocial Networking C ontent S ocial Networking G aming G aming

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 a iwa n U nited S ta tes U nited S ta tes C ana da Italy Mala 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 G erma ny T a iwa n J apan F inland C hina T a iwa n 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 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 C ana da U nited S ta tes J apan India C ana da U nited S ta tes C hina C ana da 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 orway 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 U nited S ta tes G erma ny S outh K orea S outh K orea

OTCB B K OS E TS E OTCP K OTCB B OTCB B OTCB B AIM OTCP K N as da qG S N as da qG S OTCP K GTS M OTCB B OTCB B TS X CM K LS E OTCP K OTCB B OTCB B OTCB B K OS E OTCP K TS X XT R A GTS M TS E H LS E NY S E N as da qG S N as da qG M TS E OS E K OS E N as da qG S OTCB B T S XV AS X TS X S E HK T S XV OTCP K N as da qG M OTCB B TS E OM AS X SWX K OS E S E HK N as da qG S TS X OTCP K TS E BS E N as da qG S N as da qG S N as da qG S T S XV OTCB B R TS N as da qG S N as da qG S K OS E OTCB B OTCP K OTCP K OTCB B N as da qG S AME X OTCB B S E HK OTCP K N as da qG S N as da qG M O T C NO N as da qG M T S XV N as da qG S OTCB B N as da qG S OTCB B N as da qG M AME X OTCB B OTCB B OTCP K XT R A K OS E K OS E

AC LZ A052790 3838 AS MH BSGC B W AV B YOC AIM:B G T BWBA C HIN.A C Y OU CGW Y G T S M:3083 C LK Z CW R L T S X: C X C M:DA DXN DIB Z DG L P DG T W DP DM A041060 E XT I T S X:F MN FR G 6180 3812 G E O1V GA G IG M GR VY T S E : 3632 3765 A047080 IAC I IAS C .A IE E AS X:J MB T S X:K AB 3888 T S XV : LM LV W D L OOK MA G Y 2121 MT G B MK B MY R N A095660 777 NT E S T S X:NL N NXP C 2497 590057 OT E X OP W V PWRD T S XV :P N QP S A R BCI S NDA S FLY A066270 S TVI S NMN S MV I S CLW S O HU L OV S P XA 700 K IDS .Q NC T Y TS CM T OS O TREE T S XV :US S U NT D UO MO V CLK V OIS W ZE N W ZE W DDD W ZY F W Y ND O1B C A052770 A023770

High Low Average Median

Figure 26. Valuation Comparison Source. Capital IQ

US D Market C ap ($m)

TE V/L TM R evenue

TE V/ NTM R evenue

TE V/L TM E B ITDA

TE V/NTM E B ITDA

P /L TM E P S

P /NTM E P S

P /TangB V

15.5 167.2 34.7 0.6 1.4 2.0 17.2 5.8 19.5 324.7 2,041.6 0.3 1,109.4 0.4 3.2 102.6 141.6 26.3 0.0 4.0 38.3 25.3 48.0 3.6 44.2 48.5 275.8 104.0 51.1 1,838.4 265.5 43.9 1,807.6 252.8 78.4 2,787.4 8.0 3.8 15.4 83.0 1,096.9 13.3 1.1 20.5 2.7 1,082.6 2,448.4 4.7 82.4 537.3 419.4 5,670.2 85.6 30.7 42.2 28.5 1,997.0 222.4 1,743.2 47.5 15.1 145.7 3,332.4 411.7 316.5 2.2 0.0 0.0 32.9 2,358.2 51.2 6.8 24,360.7 0.4 220.9 64.3 0.1 104.7 1.0 768.9 14.6 1,011.4 5.0 40.3 24.4 5.2 2.6 1.8 213.9 102.0 23.3

5.0x 1.4x 0.1x 15.6x 37.4x 3.1x 20.9x 0.9x 7.3x 0.0x 18.5x 0.2x 3.6x 1.3x 0.8x 0.5x 7.7x 34.0x 3.3x 6.8x 14.3x 2.0x 0.5x 7.8x 1.0x 2.1x 1.1x 0.6x 1.8x 0.7x 1.2x 8.4x 12.7x 7.6x 1.6x 2.9x 2.3x 2.6x 3.3x 3.9x 49.2x 0.0x 0.2x 2.6x 0.6x 0.4x 2.3x 0.0x 1.6x 1.7x 0.2x 1.1x 4.6x 3.8x 0.9x 22.2x 0.2x 4.6x 0.4x 0.2x 1.3x 23.5x 1.5x 4.6x 3.0x 2.0x 3.0x

0.9x 6.0x 4.5x 1.0x 0.7x 1.1x 1.5x 4.0x 0.7x 2.2x 1.6x 1.6x 3.5x 0.2x 0.4x 1.1x 1.7x -

6. 7x 1. 3x 11.0x 12.0x 33.1x 12.6x 5. 5x 3. 7x 12.1x 2. 3x 11.5x 21.2x 1. 8x 9. 7x 20.9x 21.3x 10.3x 9. 7x 8. 4x 0. 1x 10.4x 0. 8x 0. 2x 12.7x 25.8x 0. 7x 8. 9x 4. 4x 45.8x 5. 9x 8. 6x 9. 6x 9. 3x -

13.5x 10.4x 8.3x 4.9x 5.8x 6.0x 11.6x 8.0x 6.5x 4.2x 4.7x 8.4x 7.7x 12.9x 5.0x 4.4x 6.6x -

24.4x 14.0x 42.8x 9.5x 23.6x 4.6x 29.3x 12.0x 2.0x 10.5x 0.0x 23.7x 6.1x 24.7x 53.2x 12.3x 28.7x 15.0x 3.3x 31.2x 3.0x 2.7x 3.3x 13.8x 15.7x 58.4x 2.5x 34.1x 19.9x 10.6x -

32.2x 13.4x 10.9x 13.5x 9.8x 42.1x 13.4x 19.4x 43.8x 13.7x 13.9x 17.8x 11.9x 28.4x 12.3x 18.2x -

2.8x 0.5x 0.3x 13.9x 16.1x 9.4x 0.6x 4.5x 4.2x 6.6x 3.6x 1.4x 8.6x 0.4x 2.3x 0.0x 22.2x 35.5x 2.3x 1.2x 3.1x 1.5x 5.9x 13.4x 0.5x 0.8x 7.9x 3.4x 3.7x 14.5x 2.3x 1.0x 4.8x 0.9x 3.2x 1.2x 18.8x 1.1x 2.5x 1.3x 42.8x 4.6x 17.8x 24.4x 0.1x 0.8x 1.4x 8.2x 17.1x 0.0x 6.7x 3.7x 1.1x

24,360.7 0.0 678.1 44.1

49.2x 0.0x 5.8x 2.0x

6.0x 0.2x 1.9x 1.5x

45.8x 0. 1x 10.9x 9. 6x

13.5x 4.2x 7.6x 6.6x

58.4x 0.0x 17.8x 13.9x

43.8x 9.8x 19.7x 13.8x

42.8x 0.0x 6.8x 3.3x

Page 21

C omparable C ompany Analys is > Web 2.0 S ummary by C ountry C ompany Name

US D Market C ap ($m)

United S tates

39

C hina

C a na da

10

U nited S ta tes

C hina

10

S outh K orea

8

Avg US D Market C ap ($m) 43, 082. 0 5, 749. 2

US D L TM Total R ev ($m)

US D L TM Total E B ITDA ($m)

C hina

4,308. 2

C hina

3,884. 0

C hina

S weden

2,448. 4

United S tates

3,795. 0

S weden

J a pan

3, 323. 8

J apan

554. 0

S weden

1,896. 1

S weden

2, 448. 4

T aiwan

550. 2

C a na da

999. 7

240. 2

T aiwan

36. 3%

G ermany

31. 2%

109. 5

6

C anada

2, 356. 5

Hong K ong

324. 7

S outh K orea

683. 4

J a pa n

T a iwa n

1, 650. 7

C anada

235. 6

J a pa n

503. 2

S outh K orea

1, 333. 6

2

S outh K orea Hong K ong

324. 7

48. 0% 37. 2%

196. 8

3 2

C hina A us tralia

United S tates

J a pa n Aus tralia

291. 3

C a na da

T a iwa n G erma ny

E B ITDA % 1, 802. 5

92. 9

J apan

21. 9%

S weden

15. 4%

S outh K orea

166. 7

Hong K ong

389. 9

T a iwa n

52. 5

Italy

14. 6%

U nited S ta tes

147. 4

T a iwa n

366. 1

Ita ly

35. 0

Mala ys ia

13. 8%

S witzerla nd

1

G ermany

262. 5

R us s ia

145. 7

Ita ly

239. 2

Hong K ong

30. 8

R us s ia

13. 1%

Hong K ong

1

R us s ia

145. 7

Ita ly

141. 6

R us s ia

150. 1

R us s ia

19. 6

Hong K ong

7. 9%

F inla nd

1

Ita ly

141. 6

G ermany

131. 2

India

116. 9

Ma lays ia

10. 9

S outh K orea

6. 4%

Ita ly

1

S witzerla nd

82. 4

S witzerla nd

82. 4

Ma lays ia

78. 7

G erma ny

10. 6

S witzerla nd

United K ingdom

1

F inland

51. 1

F inland

51. 1

G erma ny

57. 2

Aus tralia

3. 1

C anada

-13. 3%

0. 8

1. 9%

India

1

India

28. 5

India

28. 5

S witzerla nd

40. 0

S witzerla nd

U nited S ta tes

-14. 9%

S weden

1

Malays ia

26. 3

Malays ia

26. 3

Aus tralia

16. 1

Norwa y

-1. 1

India

-23. 5%

R us s ia

1

Aus tralia

20. 1

Aus tralia

10. 1

F inla nd

6. 0

United K ingdom

-1. 9

Norway

-50. 6%

Ma lays ia

1

U nited K ingdom

5. 8

U nited K ingdom

5. 8

Norwa y

2. 2

F inla nd

-15. 6

U nited K ingdom

Norwa y

1

Norway

0. 1

Norway

0. 1

United K ingdom

0. 3

India

-27. 4

F inland

G rand Total

90

G rand Total

61,033.0

G rand Total

678.1

G rand Total

13,224.3

G rand Total

2,850.4

G rand Total

NA NA 6.8%

Figure 27. Comparison by Country Source. Capital IQ

C omparable C ompany Analys is > Web 2.0 S ummary by E xc hange C ompany Name

US D Market C ap ($m)

Avg US D Market C ap ($m)

US D L TM Total R ev ($m)

OT C B B

19

S E HK

25, 877. 1

S E HK

8,625. 7

OM

Na s daqG S

14

Nas da qG S

23, 155. 6

OM

2,448. 4

Na s daqG S

OT C P K

11

TS E

3, 071. 0

NY S E

1,838. 4

S E HK

6

OM

2, 448. 4

Nas da qG S

1,654. 0

CM

K OS E

US D L TM Total E B ITDA ($m) 1,896. 1 487. 6

Na s daqG S

E B ITDA % 1, 713. 9

S E HK

42. 7%

AS X

37. 2%

S E HK

669. 2

473. 2

OM

291. 3

GTS M

36. 3%

239. 2

TS E

90. 0

XT R A

31. 2%

TS E

5

NY S E

1, 838. 4

GTS M

692. 6

NY S E

219. 0

K OS E

80. 6

Nas da qG S

30. 1%

Na s daqG M

5

GTS M

1, 385. 2

TSE

614. 2

RTS

150. 1

GTS M

52. 5

TSE

22. 7%

1, 249. 4

TS X

4

K OS E

T S XV

4

TS X

315. 5

OS E

252. 8

BSE

116. 9

CM

35. 0

OS E

18. 0%

K OS E

208. 2

OS E

108. 8

RTS

19. 6

OM

15. 4%

S E HK

3

Nas da qG M

273. 8

R TS

145. 7

K OS E

102. 2

OS E

19. 5

CM

14. 6%

AME X

2

XT R A

262. 5

CM

141. 6

GTS M

91. 3

K LS E

10. 9

K LS E

13. 8%

R TS

13. 1%

AS X

2

OS E

252. 8

XT R A

131. 2

Na s daqG M

82. 7

XT R A

10. 6

XT R A

2

OT C B B

202. 6

SWX

82. 4

TS E

78. 9

AME X

6. 4

K OS E

4. 4%

GTS M

2

R TS

145. 7

TSX

78. 9

K LS E

78. 7

AS X

3. 1

Nas da qG M

3. 1%

141. 6

SWX

1

CM

HL S E

1

SWX

82. 4

Nas da qG M

54. 8

TS X

43. 7

SWX

0. 8

S WX

1. 9%

HLS E

51. 1

SWX

40. 0

NY S E

0. 0

T S XV

1. 3%

CM

1

AME X

75. 6

AME X

37. 8

AME X

29. 9

OT C NO

-1. 1

TSX

-14. 3%

BS E

1

T S XV

65. 6

BS E

28. 5

XT R A

28. 6

TS X

-1. 8

BSE

-23. 5%

NY S E

1

OT C P K

57. 9

K LS E

26. 3

OT C P K

16. 6

AIM

-1. 9

OTCB B

-32. 0%

OS E

1

HLS E

51. 1

T S XV

16. 4

T S XV

11. 7

Na s daqG M

-2. 8

A ME X

-36. 4%

AIM

1

BS E

28. 5

OT C B B

10. 7

AS X

8. 1

T S XV

-6. 2

OTCP K

-41. 3%

OM

1

K LS E

26. 3

AS X

10. 1

HL S E

6. 0

HL S E

-15. 6

O T C NO

-50. 6%

RTS

1

AS X

20. 1

AIM

5. 8

OT C NO

2. 2

BSE

-27. 4

NY S E

NA

K LS E

1

AIM

5. 8

OT C P K

5. 3

OT C B B

1. 7

OT C P K

-34. 0

A IM

NA

OT C NO

1

OT C NO

0. 1

OT C NO

0. 1

AIM

0. 3

OT C B B

-62. 2

HLS E

NA

G rand Total

90

G rand Total

Figure 28. Comparison by Exchange Source. Capital IQ

61,033.0

G rand Total

678.1

G rand Total

13,224.3

G rand Total

2,850.4

G rand Total

6.8%

Page 22

Fin anc ing - Las t Th ree Mon ths (US $ m) Mo nth

Co mpany N ame

May-09

Fac eboo k

C ountry US A

One Net E ntertainment

C hina

Cyberplex

C a nada

P eer39 OpenX

US A

10.5

10. 5

UK

10.0

10. 0

Intent Media

US A

Imeem E veryZing

US A US A

Co nnec tE du

US A

BlogHer Inc .

US A

WonderHill

US A

7.0 6.8

G is t

US A

Fuhu Inc .

US A

Azuki S ys tems

US A

J un-09 T otal

Debt financ ing 10.0

P IP E

S eries A

S er ies B

12. 9

9.0

9.0

8. 8 8. 2

6.8

Medialets

US A

Res o nate Netwo r ks

2.0

VoxP o p

US A US A

Mo 'Minis

I srael

1.5

Lo op'd N etwor k

US A

6.0 5. 9

Wimba

US A

G rab N etwo rks

US A

AdC hina

C hina

5.9 5 .0

5. 0

US A

US A

6.3

6.0

US A

Bo ku

7.0 7.0

6. 3

TimeBridge OLX

US A

8.2 7. 0

C a nada

US A

8.8 8.3

8. 3

5.0 5.0

5. 0

5.0

4. 0

4.0 2.0 1.5

1. 5

1.5

0. 8 13.6

G rand To tal 200.0 20. 0

US A

Tumri

S eries D 20 0.0

10. 0

I Lo ve R ewards

S ugar Inc .

S eries C

12. 9

Do c uS ign

May-09 T otal J un-09

Angel/S eed

0.8 10.0

22. 9

32.3

2 6.9

40.8

20 5.0

16.0

351.3 16. 0

1 5.0

15. 0

13.0

13. 0 12.0

12. 0

12. 0

12. 0 10. 0

10. 0

G oo jet S AS

F rance

8. 5

8.5

AdMeld Inc . beeT V

US A

8. 0

8.0

US A

8. 0

8.0

No keena

US A

6. 5

6.5

Bubble Motion

US A

S ens e Netw orks Zo os k

US A US A

G ather

US A

Mo jo P ages

US A

Tao mee

C hina

Animo to

US A

G ameG ro und

I srael

RingRevenue

US A

Crowdc as t

US A

3. 0

3.0

YuMe eRepublik

US A

2. 9

2.9

S pain

2. 8

News er L L C

US A

2.5

2.5

Clic kF uel

US A

2.5

2.5

Inigral

US A US A

2. 4

AdE x Media G ROU .P S

US A

2. 1

my6s ens e

I srael

2.0

2.0

OneT XT

US A

2.0

2.0

6. 0

6.0 6. 0

6.0 6.0

6. 0 5 .3 5.0

5.3 5.0

5. 0

5.0 4. 4

4.4

4. 1

4.1 3.5

3.5

2.8

2.4 2.3

2.3

2.1

Yapta

US A

2. 0

2.0

I Lo ve R ewards

C a nada

1. 8

1.8

Cliqs et

US A

G lubble

N etherla nds

P ic aboo To daC ell

US A I srael

AdW hirl

US A

1. 0

1.0

LiquidP lanner

US A

1. 0

1.0

Mas hLo gic

US A

0. 5

1. 5

1.5 1. 0

1.0

1.0

1.0 1.0

45.3

1.0

0.5 15. 3

28.5

6 7.8

34.0

5 .3

196.1

Page 23

Mo nth

Co mpany N ame

J u l-09

P andora Media

C ountry US A

Angel/S eed

Ko nter a L td.

I srael

Ning

US A

15.0

15. 0

Quic kP lay Media

C a nada

12.0

12. 0

Cau s es Outs park

US A US A

Co nnec tE du

US A

Ac qu ia, Inc

US A

S BN atio n

US A

Metavers um

G ermany

Quikr India P vt. Ltd.

I ndia

4. 1

OP E N S ports network

US A

4. 0

S tyleCas ter

US A

Nexage

US A

4. 0

TweetD ec k

UK

3. 2

P ro tonMedia

US A

iL oo p Mobile

US A

Lat49

C a nada

Aloqa

G ermany

Tributes .c om

US A

Co Tweet

US A

1.1

Clikthro ugh Cellu fun

US A

1.0

US A

1. 0

1.0

P eople Capital

US A

0. 5

0.5

Bo okF res h

US A

P IP E

S eries A

S er ies B

S eries C 35.0

S eries D

15.5

8. 3

10. 0 8.3

8. 2

8.2

8. 0

8.0

8. 0

8.0 6. 3

6.3 4.1 4.0

4.0

4.0 4.0 3.2

2.5

2.5

2. 0

2.0 1.5

1.5

1. 5

1.5 1. 2

1.2 1.1 1.0

0. 5 52.8

Gr and To tal

111. 7

G rand To tal 35. 0 15. 5

10.0

J u l-09 T otal

Figure 29. Financing, Last Three Months Source. Company reports

D ebt financ ing

0.5

10.0

38. 2

10.1

23.0

51.5

27.0

164.4

70.9

117. 6

126.3

237.3

711.8

Page 24

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 c qu ia, Inc .

U nited S ta tes

www.acquia.com

Acqui a , Inc ., a n open source software compa ny, prov ides products , serv ices , a nd tec hnic a l s upport for the open sourc e Drupa l soc ia l publishi ng s ys tem. T he compa ny offers Ac quia D rupa l, a pa ck a ged dis tribution of the open sourc e D rupal soc ia l publi shing sy stem tha t is used by W eb developers to build c ommunity W ebsites, a s well as deliver v a rious W eb applic ations, s uc h as s ingle or multi-us er blogs, wikis , community network s , digital media porta ls , a nd ecommerce; Ac quia N etwork, whic h offers s ubs cription-ba sed a cces s to technica l support a nd remote network s ervic es for the dep loyment and operation of Drupa l W ebsites ; a nd Ac quia S ea rch, a tool to s ea rc h the content of a s ite. It a lso provides commercia l grade s upport for the open source Drupal social publishing sy s tem, inc luding modules , themes , and cus tom code. The compa ny was formerly k nown as Aquia , I nc. and cha nge d its na me to Acquia, I nc. in D ecember 2007. Acquia , Inc . wa s founded in 2007 and is bas ed in Andov er, Ma s sac hus etts.

A dL ink Interne t Media A G

G erma ny

www.adlink.net

AdL IN K Internet Media AG , through its s ubsidia ries , provides digital marketing solutions in E urope a nd interna tionally . The c ompany specializ es in dis pla y , a ffiliate, permis s ion, direct, a nd doma in ma rketing. I ts D is pla y Mark eting segment provides online, direc t a nd dia loguebased, and permiss ion/email ma rketing solutions. This s egment’s portfolio c omprises 4, 000 Web s ites with advertis ing env ironment for regiona l, na tional, a nd internationa l c ampa igns. T he c ompa ny’s Affilia te Mark eting s egment opera tes as a brok er between a dvertis ers and W eb s ite publis hers. This s egment a lso offers profess iona l cons ulta tion, promotion options, a nd works hops. A dLIN K I nternet Media ’s Doma in Ma rk eting segment operates a trading platform for the doma in ma rket, a s wel l as a cts as a brok er between domain owners a nd a dvertisers . T he c ompa ny was formerl y known as AdLI NK I nternet M edia G mbH E urope and cha nged its na me to AdL I NK Internet M edia AG in 2000. AdLIN K I nternet Media wa s founded i n 1996 and is he a dquartered in M ontaba ur, G erma ny . AdLIN K Internet Media AG is a subs idiary of U nited I nternet AG .

A lo qa

G erma ny

www.aloqa.com

Aloqa G mbH prov ides a mobile s ervice tha t notifies interes ting pla ces , events , a nd F ac ebook friends in real time. I t s upports v arious pos itionfinding proc ess es, suc h as cell ID , G P S , W LAN , and G S M fingerprinting; a nd enables applica tions and s ervic es to tra ck us er location in rea l time for moving or s ta tiona ry objec ts . Th e c ompa ny s erves publishers , a dv ertis ers, mobile operators , and developers . Aloqa G mbH wa s founded in 2007 a nd is ba s ed in Munic h, G ermany with an a dditiona l loc ation in P a lo Alto, C a lifornia .

B ookF res h

U nited S ta tes

www.bookfresh.com

B ookF res h prov ides online scheduling and appointment software for s mall bus ines ses , serv ic e profess ionals a nd brands, AP Is , enterprise services a nd res eller s olutions, a nd online publishers . I t offers a n online s c heduling s ys tem tha t ena bles new and ex isting clients to s chedule a ppointments online. T he compa ny a lso covers v arious busines s es, s uc h as a utomotiv e, busi ness to bus ines s, computers a nd electronic s , educa tion, enterta inment a nd arts , food a nd dining, hea lth a nd beauty, home a nd garden, legal and fina nc ia l, profes s ional s ervic es , rea l estate, and tra vel and lodging. Its s olutions a re us ed in va rious sectors , s uch a s mass a ge busines s, tanning busines s , persona l tra iners, clea ning bus iness , dental s chedul ing, ha ndyma n busines s, dog and pet sitters, photogra phers , life coaching, c omputer repa ir, wellnes s pros , sales profes siona ls , a nd salon bus iness . B ook F res h wa s formerly k nown a s H ourTown, Inc . a nd changed its na me in J une 2009. The company was founded in 2007 a nd is ba s ed in S a n M ateo, Ca lifornia.

C ellu fun

U nited S ta tes

www.cellufun.com

C ellufun, LL C opera tes as a mobile c ommunities where people s ocializes , play games, a nd buy v irtua l goods for s elf expres s ion, gifting, and competitiv e adv anta ge. Its games ca ta logs include ho t, s ocial, a dventure, ca s ino, a nd board ga mes . The compa ny wa s founded in 2005 and is bas ed in New Y ork , N ew Y ork.

C likthrough

U nited S ta tes

www.clikthrough.com

C onn ectE du

U nited S ta tes

www.connectedu.net

C lik thro ugh’s interac tive media tec hnology mak es videos interac tive a nd cha nges videos into online points of s a le to a cc ess un ta pped revenue. C onnec tE du, Inc., a technology c ompa ny, prov ides W eb-ba s ed s olution s to na viga te e duca tion a nd employment tra nsitions. It offers C onnec t! , a W eb-ba s ed s olution tha t provides users with information a nd guida nce in curric ulum, co llege, a nd c areer pl a nning, a s well as online tools and resourc es to nav iga te their high sc hool, c ollege, a nd career life c ycles; a nd P rep Hea dQ uarters, a s et of I nternet-based tool s to enha nc e high school guidance, and make college a nd ca reer prepa ra ti on. The company s erves s tudents , parents, guida nce couns elors, a dmiss ion officers , tra ns fer a dvisors , enrollment ma nagers, and employers . I t ha s strategic partners hips with Na tional C ollegia te Athleti c Ass ocia tion; a al S olutions; C ouncil of N orth C entral Two Y ear C olle ges; M arcia B renner Ass ociates ; Ma ine S tate G E AR UP ; W eidenha mmer; S k y wa rd; C o mputer M a na gement Tec hnologies ; S chools O P E N , L.L . C .; S chool Information S ys tems , Inc . ; and S oftwa re Tec hnology, Inc . C onnectE du, Inc. was founded in 2002 a nd is ba s ed in B oston, M ass achus etts .

C oT weet

U nited S ta tes

www.cotweet.com

C oT weet is a bus iness front-end for T witter, enabling companies to enga ge in proa ctive ma rk eting a nd respons e-oriented customer s ervice a ctivities .

H i-Media S .A.

F rance

wwww.hi-media.com

iL oo p

U nited S ta tes

www.iloopmobile.com

Invodo, Inc .

U nited S ta tes

www.invodo.com

Hi-M edia S . A. opera tes as a n advertising ma na gement compa ny in France. I t ma rk ets advertising s pa ce to advertis ers on the Internet. T he company als o offers a ra nge of s ervices to digital media publishers , including direc t ma rketing serv ices , which compris e direct marketing me dia pla nning, email, ma il, S M S addres s es leasing, a nd implementing intera ctive TV ca mpa igns ; and micro-pa y ment tec hnical platform a nd s ervic es . In a ddition, it provides serv ices for prospecting a nd ca nv ass ing of advertisers . H i-Media S .A. wa s founded by C yril Zimmerman n in 1996. It was formerly k nown as H i-Media Multimedia a nd changed its na me to H i-Media S .A . in 2000. T he company is ba s ed in P a ris , F ra nce. iL oop M obile, I nc. prov ides mobile s ervi ces a nd tec hnology for intera c tiv e mobile ma rk eting, advertising, a nd c ontent dis tribution. T he company offers mF inity , a We b-ba s ed softwa re tha t c reates , c onnects, a nd ma nages mobile phone initiatives for bra nds , ma rketing a gencies , c ontent owners , a nd v arious c ompanies in the U nited S ta tes a nd interna tiona lly . Its mF inity opera tes as a platform to offer integrated solution for crea ting a nd ma na ging v arious S MS marketing and mes sa ging, mobile Internet s ites , mobile advertis ing, a nd W eb sites for mobile content deliv ery and va rious mobile initiatives and serv ices . T he compa ny is headqua rtered in S an J os e, C a lifornia with a dditional offic es in Copenha gen. Inv odo, I nc. offers sec ure client-controlled a nd two-wa y ex cha nges of corporate a nd us er generated v ideo c ommunic a tions between companies , employees , and c us tomers . It prov ides s yndic a tion, reporting and s tats , and cus tomer s erv ices ; a nd a cc ount ma na gement services , including video production and editing, video product pod c reation, UP C /S K U mapping a nd integra tion, a nd v ideo c ontent review. The c ompa ny a ls o offers video produc tion serv ices that c omprise producing, directing, film and video photogra phy , HD TV , crew pla c ement, production ma nagement, location sound, non-linear editing, a udio pos t a nd music produc ti on, a nd s trea ming med ia. It s erves ma nufa c turers a nd retailers . The company wa s founded in 2006 and is bas ed in Austin, T exas .

K ontera

I s ra el

www.kontera.com

K ontera T echnologies , I nc. provides in-text a dv ertis ing a nd information s olutions. I t offers i n-text pa y per c lick and W eb site advertising solutions . The c ompany prov ides C ontentL ink, an in-text a dvertis ing s olution tha t identifies contextual ly releva nt k eywords on a publis her's W eb pa ge, as well a s matches them to releva nt a ds a nd information. T he ContentL ink als o provides a ds , whi ch ena ble W eb publis hers to displa y rel eva nt c ommercial offers on their W eb pa ges , a s well as offers in-text a ds for W eb s ites; a nd va rious forma ts for ads on W eb s ites , forums , a nd blogs . I t s erves online a dvertisers , publis hers, and us ers. The company wa s founded in 2003 a nd is based in S a n F rancis c o, C alifornia with a dditiona l offi ces in New Y ork , N ew Y ork; a nd H erz liya, Is ra el.

L at49 (Idealix s o ftware)

C a nada

www.lat49.com

ID E L I X S oftware , Inc. opera tes a n online a dvertis ing network of intera ctive ma ps . Its network of online ma p properties prov ides local and bra nd a dv ertis ers an intera c tive medium for delivering geo-targ eted and contex tual dis pla y advertisements. T he company s erves a dv ertis ers, W eb s ite publis hers, a nd us ers. I DE LIX S oftwa re, I nc. wa s formerly k nown a s Adv anced Numeric al M ethods , Ltd. and cha nged its na me to ID E L I X S oftware , Inc. in 2001. The company was founded in 1996 a nd is headqua rtered in V ancouv er, C a nada.

Page 25

Metavers um

G erma ny

www.metaversum.com

Meta vers um G mbH devel ops and operates T winity, a 3D online platform. The Twinity a llows members to crea te a pers ona l a va ta r, ex plore virtua l c ities, mov e into a 3D home, c hat with friends, and work together in E urope and international ly. M etav ersum G mbH ha s a s tra tegic me dia pa rtnership with z itty ; a nd a stra tegic pa rtners hip with B igpoint. T he c ompany wa s founded in 2006 and is bas ed in B erlin, G ermany with a dditiona l offices in K iev a nd S ingapore.

N ing, Inc .

U nited S ta tes

www.ning.com

Ning, I nc. provides web hos ting s ervices . The compa ny ’s platform s upports online communities a nd offers I nternet network ing s olutions. Additi ona lly, it owns a nd opera tes online blogs and forums . The c ompany mark ets its produc t under the Ning brand na me. N ing, Inc. was founded in 2004 a nd is ba s ed in P alo A lto, C alifornia.

N exage

U nited S ta tes

www.nexage.com

NE X AG E , Inc . opera tes as a wireless a nd multi media software and s ervices company in the U nited S ta tes a nd interna tionally . It focuses on providing hos ted white la bel mobile v ideo entertai nment, a dvertis ement, and soc ia l network ing solutions for media companies , content providers , a nd carriers . The compa ny offers P honeCa s t-P ro, whic h prov ides for the a utoma tic c ontent ingestion, enc oding, ma na gement, publishi ng, and deliv ery of s treaming mobile video c ontent; P honeca st C lick -to-V ideo, a mobile advertisi ng s olution for a d agencies a nd a dvertisers to crea te mobile W eb pa ges and load videos for a mobile advertising campaign; a nd My C orner, a branded mobile v ideo s ervice with c ontent for opera tors . N E X AG E , Inc . wa s founded in 2005 a nd is ba s ed in F remont, Ca lifornia.

Ou tS park, Inc.

U nited S ta tes

www.outspark.com

O utS pa rk , I nc. , an enterta inment services compa ny, publishes a nd operates engaging onli ne multipl a yer ga mes . T he compa ny wa s founded in 2006 a nd is based in S a n F rancis c o, C alifornia with a subs idiary office in S eoul, K orea .

P andora Media

U nited S ta tes

www.pandora.com

P andora M edia, I nc. , a n Internet ra dio compa ny, prov ides music discovery s ervic es in the Uni ted S tates . The compa ny taps music al collec tion to deliver s erv ice on computer, in the home, a nd on mobile devic es. I t collects melody, ha rmony , ins trumentation, rhy thm, voca ls , a nd ly rics of a s ong. P andora Media, I nc . was formerly known a s S a va ge B east T echnologies. T he compa ny wa s founded in 2000 and is based in Oa kland, C a lifornia .

The P eople C apital peer-to-peer s tudent loan lendi ng platform fa c ilitates lending decis ions ba s ed on a student’s “potential” ra ther tha n credit payment his tory . ThetesP eople a pital teson liquidity i n the ma rk primarily et by ma tc hing lenders witing. th a ll borrowers, not just “family and P eople Media opera more Ctha n 20 platform v ertic allygenera focus ed line c ommunities gea reda lltowa rds da

P eople Capital

U nited S ta tes

www.people2capital.com

P eople Me dia

U nited S ta tes

www.peoplemedia.com

P ro ton Media

U nited S ta tes

www.protonmedia.com

P rotonM edia LL C provides 3D virtua l world technology , and corpora te tra ining and developi ng s oftware for enterpris es . It offers P rotoS phere, a priv ate virtual world environment for c olla bora tion a nd lea rning, and a s uite of c ommunica tions a nd s ocial networking tools designed to overc ome linear communica tions a nd creates a networked lea rning orga niza tion. The c ompa ny ’s tools a lso ena ble tra iners a nd employees to intera ct a nd collaborate using the s ys tem's built-in a pplica tion s ha ring, voic e ov er I P , text c ha t, and video broa dc a s ting fa c ilities. I ts clients include bus iness a nd educ a tion sectors. P rotonM edia L LC wa s founded in 1998 and is bas ed in L a nsda le, P ennsy lvania .

Qu ic kP lay Media

C a nada

www.quickplaymedi a.com

Q uick P lay M edia, Inc. prov ides media management a nd dis tribution solutions for mobile telev isi on (T V ) and video s ervic e compa nies. I t provides O p enV ideo, a pla tform that offers applic ation integra tion for mobile opera tors, media companies , a nd tec hnology pa rtners in N orth America a nd E urope. The compa ny als o offe rs mana ged s ervic es, inc luding ingestion and dis tribution of content, media mana gement, a pplica tion development, a nd reporting a nd s ettlemen t serv ices , a s well as li ve a nd on-dema nd c ontent serv ices . I n addition, it prov ides hosted solutions tha t integra te mobile TV /v ideo s ervic es into on-dec k and off-deck mobile Internet s ites , a nd content s yndica tion s ervic es. The c ompa ny was founded in 2004 a nd is headqua rtered in Toronto, C a na da. It ha s loca l s ales offices in N orth America a nd E urope.

Qu ikr India P rivate L imited

I ndia

www.quikr.com

Q uikr I ndia P riv ate L imited opera tes as a c ommunity cla ss ifieds W ebsite. I t enables people in the s ame c ity to meet, tra de, sha re ideas , and help in va rio us a rea s, s uch a s hous ehold goods, ca rs a nd bikes , s ervices, real es ta te, jobs , a nd ma trimo nia ls. Q uik r India P riva te L i mited was formerly known a s K i jiji I ndia P riva te L imited. The compa ny wa s incorpora ted in 2005 a nd is ba s ed in M umba i, India . Q uik r India P rivate L imited is a former s ubs idiary of eB a y In c.

S BN atio n (S po rts blogs Inc .)

U nited S ta tes

www.sbnation.com

S ports blogs , Inc . , doing bus ines s a s S B N a tion, engages in building s ports s ites on the W eb. I t offers ba seball, bas k etba ll, college, footba ll, a nd hoc k ey blogs, a s well as genera l blogs , s uch a s fanta s y s ports , cy cling, auto rac ing, golf, fitness , fighting, a nd miscella neous . The company was incorpora ted i n 2004 a nd is ba sed in W as hington, Dis trict O f C olumbia .

S tyleCas ter

U nited S ta tes

www.stylecaster.com

S ty leCa s ter M edia G roup, LL C provides online fa s hion-lifestyle information s ervi ces . The c ompany is ba sed in N ew Y ork , New Y ork .

S uper Rewards ( KITN Media)

C a nada

www.srpoints.com

T ribu tes

U nited S ta tes

www.tributes.com

K IT N M edia enga ges in the development of fac ebook monetiz ation s oftwa re tool a nd i s based in the United S tates. As of J uly 21, 2009, K IT N M edia opera tes as a subs idia ry of Adk nowledge, I nc . Tributes , Inc. operates Tributes .c om, a n online resource for current loc a l a nd nationa l obi tuary news . T he company operates a s an online community to provide support during times of loss a nd griev ing. It a lso ena bles the v isitors to light c andles or pla ce online gifts on va rious current and his torica l obituaries a v ailable on the na tiona l o bituary news site, as well a s to sha re photos , v ideos, recollections , a nd other a rtifa cts . In addition, the c ompany ’s obituary and online memorial s ervic e information helps people to come together online a nd offline to remember a nd s hare the stories of the people in their lives who ha ve pa ss ed a way. I t has s tra tegic pa rtnerships with E ons , Inc . ; and D ow J ones & C ompa ny . T he company wa s founded in 2008 and is bas ed in B os ton, Ma s sa chusetts. T ributes , I nc. opera tes a s a s ubsidia ry of E ons, Inc .

T weetdeck

U nited K ingdom

www.tweetdeck.com

TweetD eck , I nc. offers a des k top a pplica tion to break twitter feeds into ma na gea ble bite s ized pieces . I ts applica tion ena bles users to split their main feed into topic or group spec ific columns a llowing a broader overview of the tweets . The compa ny wa s founded in 2008 a nd is based in London, the United K ingdom.

X oopit

U nited S ta tes

www.xoopit.com

X oopit, I nc. offers s ea rch engine tec hnologies tha t deliver sea rc h, productivity , a nd soc ia l media a pplica tions to I nternet users . T he company 's G raphica l Us er I nterfac e (G U I) allows users to see photos on a grid, such a s an iP hoto. X oopit, Inc . wa s incorporated in 2004 a nd is bas ed in S a n F ranc isc o, C a lifornia . As of J uly 22, 2009, X oopit, I nc. opera tes a s a s ubsidia ry of Y a hoo! I nc.

Page 26

Open X

U nited K ingdom

www. openx. org

P eer39

U nited S ta tes

www. peer39. com

R es on ate Netwo rks

U nited S ta tes

www. res onatenetwork s. com

T im eBridge

U nited S ta tes

www. timebridge. c om

V oxP o p

U nited S ta tes

www. vox pop.tv

O penX Limited, a n open s ource advertising c ommunity, dev elops independent a d serv er and other s ervic es for W eb publishers to ma nage the online a dvertising. I t als o provides ad network pla tforms for ad network s , a d s a les hous es, and affilia te networks to deli ver advertising aP cros s s ites a t the same time; and O penX M arket, h enables publis hers toproc trade d spac to ad network s a nd a genctand ies . content In a ddition, the eer39's pa tented S ema ntic Match™ a lgorith ms is whic ba sed on natural la nguage essaing a ndema chine learning, unders me aning and sentiment, a nd deliver the mos t releva nt a nd effec tiv e brand s a fe a dvertising at the pa ge level. The compa ny was incorpora ted in 2006 a nd is based Y orkadvertising , New Y orknetwork . R es ona te N etwo rk s isina nNew online tha t wa s crea ted to help public a ffa irs , political and corpora te adv ertis ers a nd a gencies mo re prec isely target and reach web users , bas ed on thei r a ttitudes and iss ue pos itions on a wide range of topic s . Timebridge, I nc. offers person al s cheduling ma na ger that ena bles profess iona ls to s c hedule their time. The compa ny ’s one-s tep sc heduling a llows s c heduling meetings with la rge groups or individua ls ac ros s time zones , c alenda ring s ys tems , and companies. It allows us ers to schedule meetings a nd share operates thei r a va ila with others , a snment well as connec tI direc tly with rs ,ing incand luding O utlook ndtform G oogle V oxP op Network C orporation a sbility a n online entertai c ompany. t provides a ncalenda entertain intera cti ve apla for people to voic e opi nions on pop c ulture topic s , suc h a s celebrities, sports, fa s hion, a nd enterta inment. V ox P op N etwork is hea dquartered in S a n F ra nc is co, C a lifornia .

Figure 30. Company Descriptions Source. Company reports, Capital IQ, Crunchbase

Page 27

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.

I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m. T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

Tor on to 4 16. 8 60. 76 00

M ontr eal 51 4. 39 9. 150 0

V anco u ver 60 4. 66 2. 180 0

www.researchcapital.com

C al gar y 40 3. 26 5. 740 0

R egi na 306. 566. 7550