09-09-01 Web 2.0 Weekly

SOFTWARE & SERVICES

1 SEPTEMBER 2009

WEB 2.O WEEKLY

DAVID SHORE, CFA, MBA 416.860.6784 [email protected]

FINANCING ACTIVITY PICKING UP AS WE HEAD INTO THE FALL? A VE R AG E D E AL SI Z E I N CR E A S E S I N A UG U ST The month of August saw 24 financings totalling $200.6 million, well above the $82.3 million raised with only eight transactions the prior year. The average deal size of $8.4 million is also up sharply from $5.6 million in July and just $4.9 million in June. In addition, two significant acquisitions (Friends Reunited and iLike) were announced for a total of $62 million. From a sector perspective, over the last three months, Advertising related companies continue to be the top destination for capital, closely followed by Social Networks.

Financing Activity Last Twelve Months 400.0

18.0 16.2 16.0

350.0 14.6

14.0 300.0

12.0 10.3

(US$m)

9.7

10.0

200.0

(US$m)

250.0

8.4 7.0

6.6

6.5

150.0

8.0

7.1

7.0

6.2 5.6

6.0

4.9 100.0 4.0

50.0

2.0

0.0

0.0 Aug-08

Sep-08

Oct-08

Nov-08

*May-09 includes $200m FB investment

Dec-08

Jan-09

Feb-09 Total

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Average

August closes at $200.6 million on 24 transactions: Total capital raised in August was $200.6 million through 24 transactions, averaging $8.4 million per transaction. In August, online gaming company Turbine secured the largest financing transaction ($50 million). Friends Reunited was the largest acquisition in the month – selling for $42 million. 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 32 companies showing negative returns on the week. Frogster (FRG-XTRA) led the group with a 13.4% return, while Gravity Co. (GRVY-NASDAQGM) had the worst return, dropping 31.0% 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

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THE WEB 2.0 UNIVERSE Ninety-one public Web 2.0 companies: Our W eb 2.0 universe contains 91 companies, with a combined market cap of ~$63 billion (Figure 1). The median market cap for the group is ~$68 million, with average trailing revenue of ~$160 million (median $58 million). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a valuation basis, the overall average is 5.3x trailing revenue (median 1.9x) and 12.4x trailing EBITDA (median 9.8x). Nineteen 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.

6/30/2009 6/30/2009 6/30/2009 6/30/2007 6/30/2009 6/30/2009 6/30/2009 9/30/2008 9/30/2008 6/30/2009 6/30/2009 9/30/2008 3/31/2009 5/31/2009 4/30/2009 6/30/2009 6/30/2009 5/31/2009 NA 6/30/2009 5/31/2009 6/30/2009 12/31/2008 6/30/2009 6/30/2009 12/31/2008 6/30/2009 6/30/2009 6/30/2009 6/30/2009 3/31/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 1/31/2009 3/31/2009 6/30/2009 6/30/2009 6/30/2009 3/31/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 12/31/2008 12/31/2008 12/31/2008 6/30/2009 6/30/2009 6/30/2009 6/30/2008 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 12/31/2007 3/31/2009 6/30/2009 12/31/2008 6/30/2009 9/30/2008 12/31/2008 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 8/2/2008 12/31/2008 3/31/2009 3/31/2006 6/30/2009 2/28/2009 6/30/2009 4/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 6/30/2009 NA 6/30/2009 12/31/2007 12/31/2008

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 A. E 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. 57 18,950 50,000 0. 01 0. 02 0. 08 0. 17 0. 01 0. 23 2. 35 37. 76 0. 02 406 0. 00 0. 06 1 6. 47 0. 55 0. 00 0. 05 1. 51 0. 43 935 0. 20 1. 40 18. 99 50. 40 103,400 0. 05 8 4. 72 1. 65 8,270 235,500 3,975 18. 52 0. 13 0. 05 0. 37 1 8 1. 10 0. 05 1. 19 0. 01 599000. 00 290. 00 0. 08 4. 31 31950. 00 6 41. 99 1. 11 1 30200. 00 40. 40 35. 17 2. 77 38. 15 1. 80 1 1. 05 48. 94 14. 46 9300. 00 1 0. 01 0 0. 62 61. 02 2 0 115 0. 01 7. 50 2. 50 0. 03 7. 09 0. 05 6. 99 0 10 0 2. 84 0. 48 0. 12 0. 15 0. 10 29. 50 8,900 4,160

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. 8 131. 2 29. 3 0.6 1.4 2.3 7.9 4.6 19. 5 249. 1 2,076. 8 0.3 1,038. 2 0.4 5.3 82. 4 150. 4 35. 8 0.0 3.9 41. 3 23. 1 54. 4 8.9 66. 8 68. 8 232. 7 107. 7 64. 4 1,709. 6 257. 3 45. 9 1,993. 9 290. 6 69. 9 2,452. 1 9.1 2.3 15. 2 81. 5 1,177. 6 12. 5 1.5 20. 4 4.5 994. 1 2,683. 9 5.5 86. 8 539. 7 395. 5 5,434. 6 115. 2 31. 2 40. 3 28. 8 1,974. 8 230. 8 1,876. 3 56. 0 17. 8 145. 7 3,267. 6 368. 1 312. 8 5.4 0.0 0.0 27. 4 2,339. 1 48. 8 10. 7 26, 993.3 0.3 188. 2 76. 5 0.1 76. 6 1.0 586. 0 13. 7 893. 3 5.0 33. 7 24. 2 6.3 2.6 1.8 223. 0 107. 1 17. 8

4. 4 104.2 63. 7 0. 1 0. 1 9. 4 11. 7 0. 3 0. 0 361.6 241.2 6. 7 56. 2 2. 5 3. 9 88. 9 236.9 76. 1 NA 1. 0 NM 0. 6 14. 8 NM 5. 3 3. 3 138.7 78. 9 5. 3 198.5 183.6 47. 0 150.2 115.1 58. 2 1, 392. 3 0. 0 1. 5 16. 2 67. 1 139.1 0. 9 10. 6 56. 8 0. 1 131.7 1, 927. 9 1. 2 40. 0 198.7 89. 3 472.3 21. 5 0. 7 89. 6 81. 2 785.7 191.7 255.6 20. 8 0. 2 148.9 570.4 218.6 184.7 3. 5 2. 0 0. 1 0. 0 485.1 50. 5 0. 1 1, 391. 3 112.0 250.5 67. 0 2. 2 216.6 23. 7 949.8 0. 9 563.6 0. 0 22. 2 5. 3 0. 1 NM NA 57. 6 55. 0 11. 4

(3.7) 24. 8 (1.9) (2.3) (1.5) (12. 6) (12. 8) (1.8) (4.6) 25. 1 147.2 (6.6) 31. 5 (1.2) NM 9.6 31. 1 11. 0 NM (1.4) (2.5) (3.4) (3.5) NM (5.1) (6.3) 24. 5 19. 3 (17. 1) 124.1 NM 16. 0 90. 3 25. 6 1.4 52. 7 (0.8) (5.0) 6.9 3.9 61. 4 (1.6) (0.1) (4.4) (2.5) 44. 5 296.2 (2.5) 0.8 53. 3 30. 0 297.4 (13. 0) (6.2) 6.6 (40. 6) 205.1 5.3 142.2 2.3 (10. 6) 19. 5 261.0 27. 3 12. 0 0.9 (0.7) (0.1) (5.6) 209.6 10. 8 (2.5) 680.2 (13. 5) 85. 4 1.9 (1.1) (0.7) 0.1 203.2 (0.5) 99. 0 (1.0) 2.2 (4.5) (0.7) NM NM 16. 6 11. 9 1.2

-83. 3% 23. 8% -2.9% NM NM NM NM NM NM 6.9% 61. 0% -98. 9% 56. 0% -45. 8% NM 10. 8% 13. 1% 14. 4% NM NM NM NM -23. 6% NM -95. 2% NM 17. 7% 24. 5% NM 62. 5% NM 33. 9% 60. 1% 22. 2% 2.3% 3.8% NM NM 42. 8% 5.8% 44. 2% NM -1.2% -7.8% NM 33. 8% 15. 4% NM 1.9% 26. 8% 33. 6% 63. 0% -60. 3% NM 7.4% -50. 0% 26. 1% 2.8% 55. 6% 11. 0% NM 13. 1% 45. 8% 12. 5% 6.5% 27. 0% -34. 8% -60. 6% NM 43. 2% 21. 3% NM 48. 9% -12. 0% 34. 1% 2.9% -50. 6% -0.3% 0.2% 21. 4% -53. 2% 17. 6% NM 9.9% -84. 9% NM NM NM 28. 8% 21. 6% 10. 5%

4. 7x 1. 0x 0. 1x 15.6x 39.4x 1. 2x 17.0x 0. 7x 7. 5x 0. 0x 17.3x 0. 2x 4. 0x 0. 7x 0. 8x 0. 7x 5. 9x 41.4x 3. 8x 11.4x 20.4x 1. 5x 0. 4x 12.1x 1. 0x 12.5x 2. 2x 1. 0x 0. 5x 0. 9x 0. 6x 8. 6x 12.1x 0. 0x 6. 7x 1. 7x 3. 5x 2. 4x 2. 7x 2. 9x 5. 1x 0. 4x 2. 5x 0. 6x 0. 5x 2. 6x 0. 0x 1. 4x 1. 7x 1. 1x 1. 1x 4. 5x 3. 8x 0. 9x 21.2x 0. 2x 0. 2x 4. 6x 0. 4x 0. 2x 0. 9x 16.4x 1. 3x 4. 7x 3. 0x 2. 1x -

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11 NA NA 3 4 51 43 9 46 2, 227 628 37 NA 22 NA NA NA NA NA 7 3 NA NA 2 NA NA NA NA 115 1, 570 751 469 NA NA NA 3, 200 NA NA NA NA 2, 271 NA NA 90 14 NA 2, 969 NA 405 NA 2, 426 3, 109 237 NA NA NA 3, 411 NA 2, 096 NA 74 NA 3, 124 514 NA 11 33 NA NA 3, 197 183 7 6, 194 347 1, 626 310 16 700 NA 1, 469 NA 1, 189 4 NA 110 1 NA NA 174 NA NA

26, 993.3 0.0 699.3 67. 8

1,927. 9 0. 0 160.5 57.6

680. 2 -40.6 38.4 2. 2

63. 0% -98. 9% 6.0% 13. 1%

41.4x 0. 0x 5.3x 1. 9x

43. 4x 0. 2x 12.4x 9. 8x

6, 194 1 929 437

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 ) August closes at $200.6 million: Total capital raised in August was $200.6 million through 24 transactions, averaging $8.4 million per transaction In August, online gaming company Turbine secured the largest financing transaction ($50 million). Friends Reunited was the largest acquisition in the month – selling for $42 million. July closed with $190.2 million in financing on 34 transactions ($5.6 million average). 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 Twelve Months 400.0

18.0 16.2 16.0

350.0 14.6

14.0 300.0

12.0 10.3

(US$m)

9.7

10.0

200.0

(US$m)

250.0

8.4 7.0

6.6

6.5

150.0

8.0

7.1

7.0

6.2 5.6

6.0

4.9 100.0 4.0

50.0

2.0

0.0

0.0 Aug-08

Sep-08

*May-09 includes $200m FB investment

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

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09 Total

Mar-09 Average

Apr-09

May-09

Jun-09

Jul-09

Aug-09

People Media Super Rewards Turbine Friends Reunited AdLink Internet Media Pandora Media Smith & Tinker iLike xoopit MediaMath Edo Interactive Sugar Inc. Kontera Ltd. Ning Tumri Mint Boku RichRelevance QuickPlay Media Grab Networks Wimba Traffiq AdChina Causes Goojet SAS Bill.com Outspark ConnectEdu Acquia, Inc beeTV AdMeld Inc. SBNation InnoCentive OneRiot Balihoo blueKiwi Software SA Nokeena Metaversum iMemories Zoosk Boxee Bubble Motion Invodo Sense Networks Polyvore MOG Gather Taomee MojoPages Jambool Animoto Quikr India Pvt. Ltd. GameGround StyleCaster OPEN Sports network Nexage RingRevenue TweetDeck OurStage Z2Live KODA Crowdcast YuMe Scoreloop eRepublik Busca ClickFuel Newser LLC Akademos ProtonMedia Inigral AdEx Media Roblox GROU.PS Yapta iSocket OneTXT iLoop Mobile my6sense Tremor Media I Love Rewards Comunitae Cliqset Lat49 Aloqa ChessCube Tributes.com CoTweet AdWhirl LiquidPlanner Cellufun Picaboo Clikthrough TodaCell Glubble Cognitive Match MashLogic BookFresh Linksify People Capital iSyndica Masher Media Gigpark Jaxtr

(US$m)

Page 4

Turbine raises $50 million and Friends Reunited is acquired for $42 million: On the acquisition front, Friends Reunited was acquired by ITV for $42 million. On the capital raise front, Turbine had the largest raise in August, securing a $50 million round. For additional details on financings, see Figures 29 and 30 (at end of note).

Financing & M/A Summary - Last Three Months

90.0

80.0

70.0

60.0

50.0 Aug-09

Jul-09

40.0 Jun-09

30.0

20.0

10.0

0.0

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

Page 5

Advertising remains the most active sector in dollars raised and number of transactions: Following recent trends, Advertising companies (as a sector) had the most activity in dollars raised ($135.4 million) and number of transactions (15) (Figure 4). Social Networks was the next most active sector with $105.7 million raised and 14 transactions. Capital Market Activity by Sector - Last Three Months 160.0

140.0

120.0

(US$m)

100.0

80.0 135.4 60.0 105.7 93.2 80.0

40.0

69.9

64.0

63.5

20.0

34.6 24.3

24.0

22.3

Online Learning

Crowdsourced Content

Virtual Goods

Classified

Microblog

Mobile Ad

Analytics

Publishing

Online Lending

Online Calendar

SMS/Voice

0.0

Search

0.5

Collaboration

0.5

Comment/Reputation

1.0

Mobile Payment

1.0

Media

3.0

Vertical Communities

3.2

Enterprise

4.1

Blog

5.0

Mobile

7.3

Video

10.7

Music

12.0

Infrastructure

12.0

14

8

1

5

10

5

6

5

2

7

3

4

1

1

2

2

2

1

1

1

1

2

1

1

1

1

0

# companies 15

12.5

Virtual World

13.0

Online Dating

19.1

Gaming

19.3

Social Networks

Advertising

0.0

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

Page 6

Average round size flattens: On a trailing 12-month basis, total financing dollars increased as of August 2009, with average round sizes flattening (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

Jul-09

May-09

Mar-09

Jan-09

Nov-08

Sep-08

Jul-08

May-08

Mar-08

Jan-08

Nov-07

Sep-07

Jul-07

May-07

Mar-07

Jan-07

Nov-06

Sep-06

Jul-06

0.0 May-06

0.0 Mar-06

2.0

Jan-06

500.0

Nov-05

4.0

Sep-05

1,000.0

Jul-05

6.0

May-05

1,500.0

Mar-05

8.0

Jan-05

2,000.0

Page 7

Cumulative total almost $8.0 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled over $7.8 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 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. W ith two months finished in Q3, the total raised is $387.7 million.

Web 2.0 Financing (cumulative) 1,600.0

9,000.0 1,404.4

8,000.0

1,400.0

7,000.0

1,200.0

6,000.0

1,007.6 1,000.0

5,000.0 800.0

705.5 595.2

600.0

4,000.0

613.8 3,000.0

422.2 372.3

400.0

387.7 2,000.0

218.0 177.3197.6 163.4 151.1 143.9

200.0 88.3 41.5 24.7

59.4

33.5 52.2 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 Qtr3 2004

Figure 6. Financing, Cumulative Source. Company reports

2005

2006

2007

2008

2009

(US$m)

(US$m)

888.2

Page 8

U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 78.7% 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 74.8% of deals, while Canada and the UK were a distant second with a 4.3% share of the total number of financings (Figure 8). Financing/M&A by Country - LTM ($) UK 4.2%

Financing/M&A by Country - LTM (#) UK Canada 4.3% 4.3%

Canada 4.2% Israel 2.9%

Israel 3.7%

France 2.8%

France 2.7%

ROW 10.2%

China 2.3%

Germany 2.0%

ROW 2.9%

USA 78.7%

USA 74.8%

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

Early-stage funding continues to dominate (by count): Almost half of financings in the last 12 months are for earlystage companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 26.6% of the total, with later-stage (Series D, E and PIPE) deals accounting for just 7.9%. Financing by Type - LTM

Series C 14.9%

Series B 26.6%

Series D 4.4% Series E 0.9%

Series A 28.5% Angel/Seed 20.3%

PIPE 2.5%

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

Debt financing 1.9%

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). Angel rounds continue to be in the $3 million range.

Average financing round size 40.0

35.0

33.7

30.0 27.4 26.3 25.0

(US$m)

22.7

20.0

15.0 12.5 10.8 10.8

10.6 10.0 7.5

8.0

7.7 6.5

6.3 5.3 5.0

3.4

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 ) Web 2.0 Index outperforms: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid-2008 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)

8/18/2009

8/4/2009

7/21/2009

7/7/2009

6/23/2009

6/9/2009

5/26/2009

5/12/2009

4/28/2009

4/14/2009

3/31/2009

3/17/2009

3/3/2009

2/17/2009

2/3/2009

1/20/2009

1/6/2009

12/23/2008

12/9/2008

11/25/2008

11/11/2008

10/28/2008

10/14/2008

9/30/2008

9/16/2008

9/2/2008

0

Page 11

Frogster leads; Gravity 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 32 companies showing negative returns on the week. Frogster (FRG-XTRA) led the group with a 13.4% return, while Gravity Co. (GRVY-NASDAQGM) had the worst return, dropping 31.0% in the week.

Frogs ter Interactive Pictures A G S park Netw orks , Inc. Eolith Co. Ltd. TheS treet.com, Inc. DigitalTow n, Inc. PNI Digital Media Inc. NEOWIZ G ames Corporation X ING A G Fluid Mus ic Canada, Inc. HanbitS oft, Inc. Y edangOnline Corp. Chines e G amer International Northgate Technologies Limited Y nk K orea Inc. DA DA S pA NeuLion Incorporated Webz en Inc. S handa Interactive Entertainment Ltd. G amania Digital Entertainment Co., Ltd. S K Communica tions Co., Ltd. G igaMedia Ltd. Neteas e.com Inc. A Q Interactive, Inc. Changy ou.com Limited A ctoz S oft Co., Ltd. G ameOn Co Ltd. L ingo Media Corporation Open Tex t Corp. Perf ect World Co., Ltd. Mix i, Inc. G iant Interactive G roup, Inc. IA C/InterA ctiveCorp. Openw ave S y s tems Inc. G ree, Inc. K ings oft Co. Ltd. Tencent Holdings Ltd. My riad G roup A G S hutterf ly , Inc. V alueClick Inc. S ohu.com Inc. United Online Inc. Modern Times G roup Mtg A B Quepas a Corp. Ngi G roup Inc. L ookS ma rt, Ltd. CDC Corp. The9 Limited NetDragon WebS oft, Inc. Cy berplex Inc. Tree.Com, Inc. G ravity Co., Ltd

1 Week P rice P erformance

-35.0% Figure 12. 1-Week Price Performance Source. Capital IQ

-17.7%

-31.0% -30.0%

-25.0%

-20.0%

-10.6% -11.1% -12.7% -13.1%

-15.0%

-0.1% -0.2% -0.7% -0.8% -0.8% -1.0% -1.2% -1.8% -2.2% -2.2% -2.4% -2.6% -2.7% -3.1% -3.2% -3.3% -3.9% -4.2% -4.6% -4.7% -5.4% -5.5% -6.5% -6.7% -6.8% -7.0%

-10.0%

-5.0%

10.4% 8.7% 8.2% 7.9% 7.8% 7.8% 7.3% 6.1% 4.7% 4.1% 3.2% 2.5% 2.1% 1.4% 0.9% 0.7% 0.4% 0.2%

0.0%

5.0%

10.0%

13.4%

15.0%

20.0%

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: Thirteen companies in our Web 2.0 universe top US$1 billion in market capitalization (Figure 14). Fifty-seven 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, led by Tencent.

Market C ap (US D m) 26993.3 5434.6 3267.6 2683.9 2452.1 2339.1 2076.8 1993.9 1974.8 1876.3 1709.6 1177.6 1038.2 994.1 893.3 586.0 539.7 395.5 368.1 312.8 290.6 257.3 249.1 232.7 230.8 223.0 188.2 150.4 145.7 131.2 115.2 107.7 107.1 86.8 82.4 81.5 76.6 76.5 69.9 68.8 66.8 64.4 56.0 54.4 48.8 45.9 41.3 40.3 35.8 33.7 31.2 29.3 28.8 27.4 24.2 23.1 20.4 19.5 17.8 17.8 15.8 15.2 13.7 12.5 10.7 9.1 8.9 7.9 6.3 5.5 5.4 5.3 5.0 4.6 4.5 3.9 2.6 2.3 2.3 1.8 1.5 1.4 1.0 0.6 0.4 0.3 0.3 0.1 0.0 0.0 0.0

Tencent Holdings Ltd. Neteas e. com Inc. S handa Interactive Entertainment Ltd. Modern Times G roup Mtg A B IA C/InterA ctiveCorp. S ohu.com Inc. Changy ou.com Limited G ree, Inc. Open Tex t Corp. Perfect World Co., Ltd. G iant Interactive G roup, Inc. K ings of t Co. Ltd. Chines e Gamer International Mix i, Inc. V alueClick Inc. United Online Inc. NEOW IZ Games Corporation NetDragon W ebS oft, Inc. S hutterf ly , Inc. S K Communications Co., Ltd. G ungHo Online Entertainment, Inc. G igaMedia Ltd. CDC Corp. G amania Digital Entertainment Co., Openw ave S y s tems Inc. XING A G The9 Limited DA DA S pA OA O R B C Information S y s tems A ctoz S of t Co., Ltd. NeuLion Incorporated G ameOn Co Ltd. Y edangOnline Corp. My riad G roup A G Cy berplex Inc. K A B Dis tribution Inc. Tree.Com, Inc. TheS treet.com, Inc. HanbitS oft, Inc. Frogs ter Interactive Pictures A G Fluid Mus ic Canada, Inc. G eoS entric Oy j PNI Digital Media Inc. Eolith Co. Ltd. S park Netw orks , Inc. Gravity Co., Ltd DigitalTow n, Inc. Ngi G roup Inc. DXN Holdings B hd Webz en Inc. NeXplore Corporation A Q Intera ctive, Inc. Northgate Technologies Limited S ocialw is e, Inc. W iz z ard S oftw are Corporation Dolphin Digital Media, Inc. LookS mart, Ltd. B roadW ebA s ia Inc. Y nk K orea Inc. Quepas a Corp. A cceleriz e New Media, Inc. J umbuck Entertainment Pty Ltd. UOMO Media, Inc Lingo Media Corporation S pectrumDNA , Inc. IA S Energy , Inc. Ex tens ions , Inc. B ey ond Commerce, Inc. Worlds .com Inc. MOK O.mobi Limited S NA P Interac tive, Inc. CornerWorld Corporation V OIS , Inc. B right Things plc Magnitude Information S y s tems Inc. DigitalPos t Interac tive, Inc. Wooz y Fly , Inc. B etaw ave Corporation is eemedia Inc. Wy nds torm Corporation LiveWorld Inc. B igs tring Corp. Unis erve Communic ations Corp. A s s ociated Media Holdings Inc. CLICK ER Inc. The Parent Company China G atew ay Corporation Total S port Online A S S NM G lobal Holdings Dibz International, Inc. S ocial Media V enures , Inc. 0 Figure 14. Market Cap Ranking Source. Capital IQ

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Page 15

TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (up from 5.0x last week) (Figure 15). However, this is skewed by two companies with multiples greater than 30x trailing revenue: Bigstring Corporation (BSGC:OTCBB) at 39.4x and Dolphin Digital (OTCBB: DPDM) at 41.4x. The median is only 1.4x. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x

T E V/L T M R evenue (x) 45. 0 41.4 39.4

40. 0 35. 0 30. 0 25. 0

21.2 20.4

20. 0 15.6

15. 0

12.5 11.4 12.112.1

10. 0 A v erage, 5. 3 5. 0

7.5 5.9 6.7

8.6

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

4.54.6 4.7 4.7 5.1 3.5 3.8 3.8 4.0 2.1 2.2 2.4 2.5 2.6 2.7 2.9 3.0 1.4 1.5 1.5 1.7 1.7 1.3 1.0 1.1 1.1 1.2 0.8 0.9 0.9 0.9 1.0 1.0 0.6 0.7 0.7 0.7 0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.5 0.5 0.6

0. 0

17.3 16.417.0

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 (up from 11.0x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 5.9x revenue (up from 5.1x last week) (Figure 17). Ten of the companies are Canadian (average 5.1x revenue).

18.0 17.0 16.0 14.0 12.0 12.1 11.7 10.0 8.0 6.0 4.0 2.0 0.0

7.4 6.6

5.9 5.1 4.6

4.4

2

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

India

1

Russia

6

Malaysia

1

Hong Kong

39 10

Italy

# Companies

0.7 0.4 0.0

South

Norway

3

1 19 1 2 3 2 4 5 1 4 11 2 1 1 2 6 14 1 1 1 1 5 1

0.8 0.7

Sweden

United

Canada

10

Australia

Taiwan

2

Japan

China

1

Switzerland

Finland

1

Germany

2.4 2.0 2.0 1.7 United

RTS

BSE

NasdaqGM

CM

(x)

Average TEV/LTM Revenue - By Country

KLSE

OM

NasdaqGS

OSE

ASX KOSE

SWX

AMEX

TSXV

OTCPK

TSE OTCNO

TSX

SEHK

GTSM

HLSE

XTRA

AIM # Companies

OTCBB

(x)

Average TEV/LTM Revenue - By Exchange 18.0 17.0 16.0 14.0 12.7 12.1 12.0 11.7 10.0 10.99.4 8.0 6.0 5.7 4.9 4.63.9 3.6 2.8 2.4 4.0 2.2 2.0 2.0 1.9 1.7 0.8 0.7 2.0 0.4 0.3 0.0 0.0

8

1

1

1

1

1

1

Page 16

TEV/EBITDA (LTM) averages 12.4x: The average multiple for the 36 companies with positive EBITDA (and multiples under 100x) is 12.4x LTM EBITDA (up from 11.9x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 43.4x multiple (Figure 18). Twelve of the companies have EBITDA multiples under 7x. The median multiple is 9.8x (vs. 9.4x last week). T E V/L T M E B IT DA (x) 50. 0 45. 0

42. 0

43. 4

40. 0 35. 0

30. 9

30. 0

26. 0 22. 9 23. 6

25. 0

20. 8 19. 4 19. 7

20. 0

DXN Holdings B hd

8. 6

8. 7

9. 8

Y edangO nline C orp.

S park Network s , Inc .

8. 6

9. 7

C DC C orp.

U nited O nline Inc .

7. 7

S ohu. c om Inc .

4. 4

6. 5

G amania Digital E ntertainment C o. , Ltd.

4. 2

6. 2 6. 4

NetDragon WebS oft, Inc .

4. 0

Actoz S oft C o. , L td.

9. 8

11. 1 9. 9 10. 1 10. 3 11. 0

12. 2

13. 5 14. 1

T enc ent Holdings L td.

H anbitS oft, Inc.

C hines e G amer International

P NI Digital Media Inc .

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

O penwave S y s tems Inc .

G ree, Inc .

Mix i, Inc .

K ings oft C o. L td.

Y nk K orea Inc.

IAC /InterAc tiveC orp.

C hangy ou. c om L imited

S hutterfly , Inc.

Modern T imes G roup Mtg AB

XING AG

G ungH o O nline E ntertainment, Inc .

O pen T ex t C orp.

NE O WIZ G ames C orporation

C yberplex Inc .

1. 8 DADA S pA

0. 0

4. 0

4. 6

S NAP Interac tive, Inc .

1. 3

G ameO n C o L td.

0. 9

J umbuck E ntertainment P ty Ltd.

5. 0

P erfec t World C o. , L td.

10. 0

V alueC lic k Inc .

A verage, 12.4

T heS treet. c om, Inc .

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 9.2x EBITDA (Figure 20). Ten of the companies are Canadian (average 13.3x EBITDA).

Average TEV/LTM EBITDA - By Exchange

Average TEV/LTM EBITDA - By Country

25.0 23.8

20.0

23.6 19.7 18.4

18.4

2

1 # Companies

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

Switzerland

19

Russia

2

Australia

1

Malaysia

KLSE

5

Italy

NasdaqGM

1

0.0

United States

CM

4

0.2

Hong Kong

TSX

1

1.3 Germany

OSE

14

4.6

Sweden

NasdaqGS

2

6.4

Japan

XTRA

1

9.7 9.2

Canada

OM

5

11.0 10.3

China

TSE

6

RTS

KOSE

2

0.0

ASX

GTSM

4

5.0

AMEX

TSXV

3

1.3 0.2 OTCBB

SEHK

0.0

13.3 13.1

10.0

6.5 6.4 6.2 4.6 4.4 4.0

5.0

15.6

(x)

14.1 11.0 10.3 10.1 10.1

10.0

# Companies

15.0

South Korea

(x)

15.0

19.7

Taiwan

20.0

25.0

3

8

10

10

6

1

2

1

39

1

1

2

1

1

Page 17

P/E (LTM) averages 18.1x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 18.1x LTM EPS, led by Tencent Holdings Ltd.’s (700-SEHK) 58.4x multiple (Figure 21). Eleven of the companies have P/E multiples under 10x. The median is just 13.2x.

P /E L T M (x) 70.0

65.2

60.0

55.2 50.1

50.0

43.9 40.2

40.0 32.9 29.4

30.0

23.4 23.5 24.0 19.5 20.3

G ungH o O nline E ntertainment, Inc.

T encent H oldings Ltd.

Mix i, Inc.

G ree, Inc.

C hines e G amer International

O pen T ex t C orp.

NE O W IZ G ames C orporation

Worlds .com Inc.

K ings oft C o. Ltd.

XING AG

Actoz S oft C o., Ltd.

G amania Digital E ntertainment C o., Ltd.

16.1

NetDragon W ebS oft, Inc.

C hangy ou.com Limited

S ohu.com Inc.

S park Network s , Inc.

Modern T imes G roup Mtg AB

H anbitS oft, Inc.

Y edangO nline C orp.

IAC /InterActiveC orp.

G ameO n C o Ltd.

7.5

G igaMedia Ltd.

6.0

13.0 13.2 13.3 13.8 14.3 11.2 11.6 11.9 9.6 10.2

S NAP Interactive, Inc.

4.5

C y berplex Inc.

3.1

DXN H oldings B hd

S handa Interactive E ntertainment Ltd.

2.7

Neteas e.com Inc.

2.6

P erfect World C o., Ltd.

2.1 T he9 Limited

0.0

2.0 G iant Interactive G roup, Inc.

10.0

J umbuck E ntertainment P ty Ltd.

A verage, 18.1

20.0

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 16.8x. On a geographic basis, the United States has the most companies (39), trading at an average of 14.6x earnings (Figure 23). Ten of the companies are Canadian (average 13.5x EPS).

45.0

50.0

35.0 30.0

31.6 30.2

AMEX

OM

NasdaqGS

TSX

KLSE

ASX

NYSE

NasdaqGM

2

6

19

2

1

14

4

1

2

1

5 # Companies

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

0.0 Italy

OTCBB

2

0.0

0.0 Switzerland

KOSE

3

4.5

Australia

XTRA

5

6.0

5.0 Malaysia

GTSM

1

13.2 12.3

South Korea

SEHK

0.0

13.5

Sweden

2.0

TSE

# Companies

14.6

15.0 10.0

OSE

0.0

20.2

China

10.0

6.0 4.5

23.5 23.4

20.0

United States

13.3 13.2 10.4 7.5

25.0

Canada

20.0

18.4 16.8

Germany

23.4

Taiwan

30.0

Japan

35.1

40.0

Average P/E - By Country 42.6

40.0

(x)

(x)

Average P/E - By Exchange 70.0 65.2 60.0

6

3

2

10

39

10

1

8

1

2

1

1

Page 18

UPCOMING EVENTS

E arnings C alendar C ompany

Date & Time

Quarter

C onf C all Details

S handa Interactive E ntertainment L td. (Nas daqG S : S NDA)

T hurs day, S eptember 03, 2009 9: 00 P M (E DT )

Q 2 2009

1-866-713-8310

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 A. E 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

15.8 131.2 29.3 0.6 1.4 2.3 7.9 4.6 19.5 249.1 2, 076.8 0.3 1, 038.2 0.4 5.3 82.4 150.4 35.8 0.0 3.9 41.3 23.1 54.4 8.9 66.8 68.8 232.7 107.7 64.4 1, 709.6 257.3 45.9 1, 993.9 290.6 69.9 2, 452.1 9.1 2.3 15.2 81.5 1, 177.6 12.5 1.5 20.4 4.5 994.1 2, 683.9 5.5 86.8 539.7 395.5 5, 434.6 115.2 31.2 40.3 28.8 1, 974.8 230.8 1, 876.3 56.0 17.8 145.7 3, 267.6 368.1 312.8 5.4 0.0 0.0 27.4 2, 339.1 48.8 10.7 26,993. 3 0.3 188.2 76.5 0.1 76.6 1.0 586.0 13.7 893.3 5.0 33.7 24.2 6.3 2.6 1.8 223.0 107.1 17.8

H igh L ow Average Media n

Figure 25. Price Performance Source. Capital IQ

699.3

C urrent P ric e 0.57 18, 950 50, 000 0.01 0.02 0.08 0.17 0.01 0.23 2.35 37.76 0.02 406.00 0.00 0.06 1.39 6.47 0.55 0.00 0.05 1.51 0.43 935.00 0.20 1.40 18.99 50.40 103, 400 0.05 7.55 4.72 1.65 8, 270 235, 500 3, 975 18.52 0.13 0.05 0.37 1 8 1.10 0.05 1.19 0.01 599,000.00 290.00 0.08 4.31 31,950.00 5.80 41.99 1.11 0.56 30,200.00 40.40 35.17 2.77 38.15 1.80 1.40 1.05 48.94 14.46 9,300.00 1 0.01 0.11 0.62 61.02 2 0 115 0.01 7.50 2.50 0.03 7.09 0.05 6.99 0.16 10.25 0.01 2.84 0.48 0.12 0.15 0.10 29.50 8, 900 4, 160

1 Wk

1 Mth

3 Mth

6 Mth

1 Yr

52 Week

1. 8% -1.0% -0.8% -30.0% 42.0% 0. 0% -5.6% 3. 6% -22.8% -10.6% -0.8% -25.0% 3. 2% -8.0% -8.3% -13.1% 1. 4% 3. 8% 20.0% -16.7% 7. 9% 10.3% 8. 7% 150.0% 6. 1% 13.4% 0. 2% -1.2% 0. 0% -2.6% -0.2% -31.0% -3.2% -3.1% 4. 7% -2.7% -13.3% 0. 0% -1.3% 0. 0% -3.3% -1.8% 0. 0% -7.0% 53.8% -2.4% -6.5% 5. 6% -4.2% 7. 8% -12.7% -0.7% 0. 9% -6.7% -6.8% 2. 5% -2.2% -3.1% -2.2% 7. 8% -6.7% 0. 0% 0. 4% -4.6% -0.1% 25.0% 55.6% 0. 0% 3. 3% -5.4% 10.4% -4.3% -3.9% -28.9% -11.1% 8. 2% 0. 0% -17.7% 0. 0% -5.5% 6. 7% -4.7% 0. 0% 0. 7% 6. 7% 9. 1% 0. 0% 0. 0% 7. 3% 4. 1% 2. 1%

26.7% -20.0% -17.2% -30.0% -11.1% 14.3% -55.4% -21.6% -22.8% -23.0% 2.7% 650.0% -6.2% -33.3% 10.0% -17.8% 5.5% 34.1% NM -7.4% 7.9% -14.0% 15.4% 150.0% 55.6% 40.7% -15.4% 1.5% 25.0% -7.1% -3.3% 5.1% 8.1% 14.4% -9.0% 0.6% 16.1% -37.5% -2.6% 0.0% 7.0% -4.3% 35.1% 5.3% 53.8% -10.2% 7.8% 15.4% 4.1% 2.4% -5.7% -4.7% 33.7% -20.0% -6.4% 3.2% -6.8% 5.3% 6.7% 20.0% 17.6% 16.7% -1.3% -10.0% 0.8% 150.0% 40.0% -73.8% -18.3% -0.2% -3.7% 57.1% 10.2% -6.7% -13.8% 20.2% 0.0% -29.0% 0.0% -23.9% -5.9% -10.9% 9.1% -16.4% -5.9% 0.0% NM 0.0% 3.5% 12.1% -22.0%

14.0% -37.3% -34.6% 833.3% 26.3% 11.0% -82.1% -12.1% -54.9% 36.6% 0.3% 650.0% 15.8% 21.1% -38.9% -13.7% 11.2% 39.2% 20.0% 127.3% -24.5% -21.8% 26.4% 33.3% 47.4% 133.0% -7.5% -10.1% 25.0% -11.0% -24.1% 50.0% 42.1% -5.0% -23.6% 13.1% -43.5% -37.5% -17.8% 4.9% 60.2% 8.9% -37.5% -9.2% -23.1% 27.4% 25.3% 13.6% -24.9% -15.9% 9.4% 17.2% 48.0% -20.0% -17.0% -18.2% 0.1% 48.1% 73.4% 20.0% 37.3% 6.6% -19.0% -1.3% -21.5% -36.7% 250.0% 1000. 0% -10.1% -6.5% 1.3% -40.5% 36.8% -6.7% -29.3% 28.2% 0.0% -33.5% -25.0% -1.8% -23.8% -6.7% 71.4% -36.9% -14.3% -7.7% 0.0% 233.3% -10.2% -14.4% -44.5%

62.9% 89.5% 62.3% 180.0% 41.2% -55.6% -69.1% 28.9% -77.2% 193.8% NM 650.0% 208.7% -84.7% -63.3% 297.1% 32.0% 77.4% -88.0% 733.3% -39.6% -15.7% 74.8% 0. 0% 225.6% 442.6% 110.4% 14.3% 66.7% 14.9% -9.2% 146.3% 73.7% 101.3% 30.3% 27.6% 188.9% -37.5% -17.8% 60.0% 224.8% 22.2% 25.0% 13.3% -49.5% 65.9% 131.5% 50.0% 2. 1% 99.1% 104.2% 100.8% 241.5% -13.8% 50.5% 16.3% 14.7% 229.8% 261.6% 20.0% 20.7% 238.7% 55.9% 75.3% 46.7% -47.4% 600.0% -90.8% 47.6% 32.7% -1.2% 131.6% 153.4% -12.5% -25.8% 35.1% -25.0% 67.6% -10.0% 55.7% 128.6% 71.4% -7.7% 199.0% 0. 0% 0. 0% 0. 0% -16.7% 8. 9% 30.9% 23.8%

-9.5% 103. 8% -60. 0% -30. 0% -60. 0% -76. 5% -93. 9% -21. 6% -84. 7% -5.6% NM -50. 0% 483. 7% -99. 2% -93. 0% 127. 9% -41. 7% 41.0% -97. 6% -9.1% -62. 3% -44. 9% 40.6% 100. 0% -11. 9% 211. 3% 157. 1% -14. 0% 0.0% -8.8% -56. 3% 11.5% NM 16.0% 20.8% 6.4% -40. 9% -68. 8% -26. 0% -8.6% 179. 3% -40. 5% -77. 3% -60. 3% -28. 6% -22. 5% -9.9% 114. 3% -54. 6% 218. 7% 10.3% 72.4% NM 12.0% -66. 2% -85. 8% 6.1% 89.7% 60.2% -43. 8% -58. 5% -86. 2% 76.0% 44.9% -12. 3% -43. 8% -99. 0% -56. 0% -72. 4% -10. 2% -44. 2% -62. 7% 93.3% -99. 2% -61. 3% -61. 5% -40. 0% -9.1% -78. 6% -33. 2% -55. 6% -10. 9% -72. 0% 30.9% -66. 0% -45. 5% NM -83. 3% -9.1% 30.7% -54. 6%

-13.6% -47.4% -63.6% -72.0% -65.7% -76.5% -94.2% -41.3% -92.1% -40.1% -21.9% -57.1% -21.8% -99.3% -93.0% -30.2% -46.1% -3.5% -97.6% -49.5% -66.4% -61.9% -19.4% -80.2% -22.2% -4.5% -26.7% -32.4% -28.6% -21.1% -61.2% -37.3% -5.5% -15.9% -40.1% -5.3% -53.6% -73.7% -39.3% -24.7% -11.5% -42.7% -80.0% -63.5% -66.7% -35.0% -18.2% -25.0% -56.5% -23.9% -18.9% -10.5% -14.6% -61.4% -76.3% -87.1% -12.5% -11.5% -9.0% -48.6% -59.5% -86.6% -24.7% -12.6% -28.5% -53.7% -99.4% -97.8% -76.2% -21.3% -46.9% -61.4% -6.0% -99.2% -62.2% -65.9% -40.0% -45.8% -82.0% -37.0% -84.9% -24.1% -73.9% -39.3% -72.3% -65.7% -96.3% -83.3% -16.9% -28.2% -66.5%

150.0% -31.0% 1.5% -0.1%

650.0% -73.8% 11.2% 0.0%

1000. 0% -82.1% 35.4% -0.6%

733.3% -90.8% 79.2% 41.2%

483. 7% -99. 2% -6.7% -27. 3%

-3.5% -99.4% -47.9% -45.9%

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 A.E 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

15.8 131.2 29.3 0.6 1.4 2.3 7.9 4.6 19.5 249.1 2,076.8 0.3 1,038.2 0.4 5.3 82.4 150.4 35.8 0.0 3.9 41.3 23.1 54.4 8.9 66.8 68.8 232.7 107.7 64.4 1,709.6 257.3 45.9 1,993.9 290.6 69.9 2,452.1 9.1 2.3 15.2 81.5 1,177.6 12.5 1.5 20.4 4.5 994.1 2,683.9 5.5 86.8 539.7 395.5 5,434.6 115.2 31.2 40.3 28.8 1,974.8 230.8 1,876.3 56.0 17.8 145.7 3,267.6 368.1 312.8 5.4 0.0 0.0 27.4 2,339.1 48.8 10.7 26,993.3 0.3 188.2 76.5 0.1 76.6 1.0 586.0 13.7 893.3 5.0 33.7 24.2 6.3 2.6 1.8 223.0 107.1 17.8

4.7x 1.0x 0.1x 15.6x 39.4x 1.2x 17.0x 0.7x 7.5x 0.0x 17.3x 0.2x 4.0x 0.7x 0.8x 0.7x 5.9x 41.4x 3.8x 11.4x 20.4x 1.5x 0.4x 12.1x 1.0x 12.5x 2.2x 1.0x 0.5x 0.9x 0.6x 8.6x 12.1x 0.0x 6.7x 1.7x 3.5x 2.4x 2.7x 2.9x 5.1x 0.4x 2.5x 0.6x 0.5x 2.6x 0.0x 1.4x 1.7x 1.1x 1.1x 4.5x 3.8x 0.9x 21.2x 0.2x 0.2x 4.6x 0.4x 0.2x 0.9x 16.4x 1.3x 4.7x 3.0x 2.1x 1.5x

0.7x 5.8x 0.6x 1.5x 8.1x 1.0x 0.5x 1.6x 2.2x 0.6x 2.6x 2.2x 1.4x 3.3x 0.2x 0.2x 0.9x 1.4x -

4. 0x 9. 7x 12.2x 30.9x 6. 5x 6. 4x 4. 6x 8. 6x 1. 8x 20.8x 10.1x 42.0x 13.5x 1. 3x 19.4x 19.7x 11.0x 9. 9x 8. 6x 9. 8x 22.9x 0. 9x 23.6x 0. 2x 11.1x 26.0x 4. 0x 8. 7x 4. 4x 43.4x 6. 2x 4. 2x 7. 7x 10.3x 9. 8x 14.1x

6.8x 10.0x 5.0x 4.7x 4.2x 12.4x 8.1x 5.5x 5.0x 7.1x 7.0x 7.3x 12.9x 5.9x 3.6x 5.4x -

19.5x 14.3x 40.2x 7.5x 6.0x 20.3x 11.2x 2.0x 10.2x 0.0x 43.9x 65.2x 13.0x 11.6x 4.5x 23.5x 50.1x 13.2x 29.4x 16.1x 3.1x 32.9x 2.7x 2.6x 9.6x 13.8x 13.3x 55.2x 2.1x 0.0x 24.0x 23.4x 11.9x -

12.8x 8.4x 1.7x 13.6x 9.5x 35.2x 14.4x 16.9x 12.5x 43.3x 12.4x 14.3x 13.3x 16.6x 39.9x 10.0x 16.0x -

2.1x 0.5x 0.5x 99.6x 14.1x 15.1x 3.3x 0.8x 5.1x 6.3x 9.3x 3.1x 1.3x 54.3x 0.3x 2.2x 0.0x 20.3x 22.5x 2.1x 1.2x 1.9x 1.5x 0.9x 6.6x 12.8x 0.7x 0.8x 6.8x 3.9x 3.8x 14.9x 2.1x 0.9x 8.5x 0.8x 3.3x 1.2x 19.8x 1.1x 2.2x 3.0x 4.6x 49.9x 24.6x 0.1x 1.0x 1.0x 5.8x 31.6x 0.0x 7.3x 3.7x 0.9x

26,993.3 0.0 699.3 47.3

41.4x 0.0x 5.3x 1.9x

8.1x 0.2x 1.9x 1.4x

43.4x 0. 2x 12.4x 9. 8x

12.9x 3.6x 6.9x 6.4x

65.2x 0.0x 18.1x 13.2x

43.3x 1.7x 17.1x 13.6x

99.6x 0.0x 9.3x 3.1x

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) 45, 458. 8 5, 088. 9

US D L TM Total R ev ($m)

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

C hina

4,545. 9

C hina

4,093. 2

C hina

S weden

2,683. 9

United S tates

3,887. 3

S weden

E B ITDA % 2, 038. 5 296. 2

C hina

49. 2%

A us tralia

42. 8%

J a pan

3, 455. 9

J apan

576. 0

S weden

1,927. 9

United S tates

290. 4

T aiwan

36. 9%

S weden

2, 683. 9

T aiwan

509. 4

C a na da

1,011. 1

C a na da

200. 1

G ermany

28. 8%

J a pa n

6

C anada

2, 348. 4

Hong K ong

249. 1

S outh K orea

684. 8

J a pa n

184. 4

J apan

24. 2%

T a iwa n

3

T a iwa n

1, 528. 2

C anada

234. 8

J a pa n

629. 3

S outh K orea

118. 0

S weden

15. 4%

1, 294. 5

Aus tralia

2

S outh K orea

G erma ny

2

G ermany

291. 8

S outh K orea

161. 8

T a iwa n

378. 4

T a iwa n

56. 0

Mala ys ia

14. 4%

Ita ly

150. 4

Hong K ong

361. 6

Ita ly

31. 1

Italy

13. 1%

S witzerla nd

1

Hong K ong

249. 1

G ermany

145. 9

Ita ly

236. 9

Hong K ong

25. 1

R us s ia

13. 1%

Hong K ong

1

Ita ly

150. 4

R us s ia

145. 7

R us s ia

148. 9

R us s ia

19. 5

S outh K orea

12. 7%

F inla nd

1

R us s ia

145. 7

U nited S ta tes

130. 5

India

81. 2

Ma lays ia

11. 0

Hong K ong

6. 9%

Ita ly

1

S witzerla nd

86. 8

S witzerla nd

86. 8

Ma lays ia

76. 1

G erma ny

10. 4

S witzerla nd

1. 9%

United K ingdom

1

F inland

64. 4

F inland

64. 4

G erma ny

60. 9

Aus tralia

4. 4

C anada

-8. 5%

0. 8

India

1

Malays ia

35. 8

Malays ia

35. 8

S witzerla nd

40. 0

S witzerla nd

U nited S ta tes

-21. 9%

S weden

1

India

28. 8

India

28. 8

Aus tralia

17. 4

Norwa y

-1. 1

India

-50. 0%

R us s ia

1

Aus tralia

20. 7

Aus tralia

10. 3

F inla nd

5. 3

United K ingdom

-1. 8

Norway

-50. 6%

Ma lays ia

1

U nited K ingdom

4. 6

U nited K ingdom

4. 6

Norwa y

2. 2

F inla nd

-17. 1

U nited K ingdom

Norwa y

1

Norway

0. 1

Norway

0. 1

United K ingdom

0. 3

India

-40. 6

F inland

G rand Total

90

G rand Total

62,936.8

G rand Total

699.3

G rand Total

13,642.9

G rand Total

3,225.3

G rand Total

NA NA 6.0%

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)

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

19

S E HK

28, 566. 4

S E HK

9,522. 1

OM

Na s daqG S

14

Nas da qG S

22, 194. 1

OM

2,683. 9

S E HK

OT C P K

11

TS E

3, 165. 3

NY S E

1,709. 6

Na s daqG S

494. 4

OM

296. 2

S E HK

42. 2%

6

OM

2, 683. 9

Nas da qG S

1,585. 3

CM

236. 9

TS E

158. 9

GTS M

36. 9%

K OS E

1,927. 9

E B ITDA %

OT C B B

539. 9

Na s daqG S S E HK

1, 760. 7 771. 6

TS E

5

NY S E

1, 709. 6

GTS M

635. 5

NY S E

198. 5

NY S E

124. 1

Na s daqG M

5

GTS M

1, 270. 9

TSE

633. 1

RTS

148. 9

K OS E

99. 9

1, 215. 0

TS X

4

K OS E

T S XV

4

TS X

345. 9

NY S E

62. 5%

AS X

42. 8%

Nas da qG S

30. 3%

XT R A

28. 8%

OS E

290. 6

OS E

115. 1

GTS M

56. 0

TSE

24. 6%

K OS E

202. 5

TS E

102. 8

CM

31. 1

OS E

22. 2%

S E HK

3

XT R A

291. 8

CM

150. 4

K OS E

102. 6

OS E

25. 6

OM

15. 4%

AME X

2

OS E

290. 6

XT R A

145. 9

GTS M

97. 4

RTS

19. 5

K LS E

14. 4%

AS X

2

Nas da qG M

253. 0

R TS

145. 7

XT R A

2

OT C B B

203. 9

SWX

86. 8

Na s daqG M

81. 9

Na s daqG M

15. 0

CM

13. 1%

BSE

81. 2

K LS E

11. 0

R TS

13. 1%

GTS M

2

CM

150. 4

TSX

86. 5

K LS E

76. 1

XT R A

10. 4

SWX

1

R TS

145. 7

HLS E

64. 4

TS X

45. 7

AME X

6. 2

K OS E

9. 6%

Nas da qG M

7. 7%

HL S E

1

SWX

86. 8

Nas da qG M

50. 6

SWX

40. 0

AS X

4. 4

T S XV

5. 6%

CM

1

AME X

73. 0

AME X

36. 5

XT R A

30. 5

SWX

0. 8

S WX

1. 9%

BS E

1

T S XV

71. 8

K LS E

35. 8

AME X

27. 9

OT C NO

-1. 1

A ME X

-31. 8%

NY S E

1

HLS E

64. 4

BS E

28. 8

OT C P K

16. 5

AIM

-1. 8

TSX

-34. 7%

OS E

1

OT C P K

64. 2

T S XV

18. 0

T S XV

11. 7

T S XV

-4. 3

OTCB B

-38. 8%

AIM

1

K LS E

35. 8

OT C B B

10. 7

AS X

8. 7

TS X

-4. 5

OTCP K

-41. 5%

10. 3

OM

1

BS E

28. 8

AS X

HL S E

5. 3

HL S E

-17. 1

BSE

-50. 0%

RTS

1

AS X

20. 7

OT C P K

5. 8

OT C B B

2. 3

OT C P K

-34. 1

O T C NO

-50. 6%

K LS E

1

AIM

4. 6

AIM

4. 6

OT C NO

2. 2

BSE

-40. 6

HLS E

NA

OT C NO

1

OT C NO

0. 1

OT C NO

0. 1

AIM

0. 3

OT C B B

-62. 4

A IM

NA

G rand Total

90

G rand Total

Figure 28. Comparison by Exchange Source. Capital IQ

62,936.8

G rand Total

699.3

G rand Total

13,642.9

G rand Total

3,225.3

G rand Total

6.0%

Page 22

Financ ing - L as t Three Months (US $ m) F in. Amount (Million) Month J un-09

C ompany Name S ugar Inc.

Type of financing C ountry US A

Tumri

US A

B oku

US A

W imba

US A

G rab Networks

US A

AdC hina

C hina

G oojet S AS

F rance

E do Interac tive

US A

P IP E

S eries A

S eries B

S eries C 16. 0

S eries D

15. 0

Grand Total 16. 0 15. 0

13. 0

13. 0 12. 0

12. 0

12. 0

12. 0 10. 0

10. 0 8. 5

8. 5

8. 0

8. 0

AdMeld Inc .

US A

8. 0

8. 0

beeTV

US A

8. 0

8. 0

blueK iwi S oftware S A

F rance

6. 5

6. 5

Nokeena

US A

6. 5

6. 5

6. 0

6. 0

B ubble Motion

US A

S ens e Networks

US A

Zoos k

US A

G ather

US A

MojoP ages

US A

Taomee

C hina

Animoto

US A

G ameG round

Is rael

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

R ingR evenue

US A

C rowdc as t

US A

3. 0

YuMe

US A

2. 9

2. 9

eR epublik

S pain

2. 8

2. 8

3. 5

3. 5 3. 0

News er L L C

US A

2. 5

2. 5

C lic kF uel

US A

2. 5

2. 5

Inigral

US A

AdE x Media

US A

G R OU.P S

US A

my6s ens e

Is rael

Yapta

US A

OneTXT

US A

I L ove R ewards

C a na da

C liqs et

US A

P ic aboo

US A

TodaC ell

Is rael

2. 4

2. 3

2. 1

2. 1 2. 0 2. 0

2. 0 2. 0

1. 8

1. 8

1. 5

1. 5 1. 0

1. 0 1. 0

Netherla nds US A

L iquidP lanner

US A

1. 0 1. 0

1. 0

1. 0

1. 0

1. 0

1. 0

US A US A

2. 0

2. 0

G lubble

Mas hL ogic

2. 4 2. 3

AdW hirl MOG J un-09 Total

Angel/S eed

0. 5

0. 5

0. 5 53.3

0. 5 15.3

28.5

68.3

34.0

5.3

204.7

Page 23

Financ ing - L as t Three Months (US $ m) F in. Amount (Million) Month J ul-09

C ompany Name P andora Media

Type of financing C ountry US A

Angel/S eed

S eries A

S eries B

S eries C 35. 0

S eries D

15. 5

Grand Total 35. 0

K ontera L td.

Is rael

Ning

US A

15. 0

15. 0

Quic kP lay Media

C a na da

12. 0

12. 0

15. 5

C aus es

US A

Outs park

US A

10. 0 8. 3

8. 3

C onnectE du

US A

8. 2

8. 2

Ac quia, Inc

US A

S B Nation

US A

8. 0

MediaMath

US A

6. 6

Metavers um

G ermany

10. 0

8. 0

8. 0 8. 0 6. 6

6. 3

6. 3

iMemories

US A

6. 2

6. 2

Invodo

US A

6. 0

6. 0

J ambool

US A

Quikr India P vt. L td.

India

4. 1

5. 0

OP E N S ports network

US A

4. 0

S tyleC as ter

US A

5. 0 4. 1 4. 0

4. 0

4. 0

Nexage

US A

4. 0

4. 0

TweetDec k

UK

3. 2

3. 2

B us c a

US A

Akademos

US A

P rotonMedia

US A

iL oop Mobile

US A

2. 6

2. 6

2. 5

2. 5 2. 5

2. 5

2. 0

2. 0

C omunitae

S pain

1. 7

1. 7

Aloqa

G ermany

1. 5

1. 5

L at49

C a na da

Tributes .com

US A

1. 5

1. 5 1. 2

1. 2

C oTweet

US A

1. 1

1. 1

C likthrough

US A

1. 0

1. 0

C ognitive Matc h L imited

UK

1. 0

C ellufun

US A

B ookF res h

US A

P eople C apital

US A

Mas her Media

US A

1. 0

0. 5

0. 5

0. 5

0. 3

0. 3

63.8 Turbine

1. 0 1. 0

0. 5

J ul-09 Total Aug-09

P IP E

11.1

36.8

51.5

US A

50. 0 US A

S mith & Tinker Mint

US A

R ic hR elevance

US A

Traffiq

US A

MediaMath

US A

B ill.com

US A

E do Interac tive

US A

InnoC entive

US A

29. 0 14. 1

12. 5

10. 0

10. 0

10. 0

10. 0 8. 5

8. 5 7. 3

7. 3

B alihoo

US A

7. 0

P olyvore

US A

Z2L ive

US A US A

S c oreloop

G ermany

R oblox

US A

3. 0 2. 8

US A S outh Africa US A US A

2. 8 2. 2

2. 0

2. 0 2. 0

2. 0

1. 3

1. 3

0. 5

0. 5

0. 4

0. 4

Aug-09 Total

25.8

G rand Total

142.9

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

3. 0 3. 0

2. 2 US A

iS yndic a

5. 0 3. 0

3. 0

Tremor Media L inks ify

5. 6 5. 0

3. 0

iS ocket C hes s C ube

7. 0 6. 0

5. 6

US A

OurS tage

7. 0

6. 0 US A

K ODA

8. 5

8. 5 7. 0

MOG

50. 0 14. 1

12. 5

US A US A

190.2

29. 0

OneR iot B oxee

27.0

15.3

5.0

76.2

43.6

50.0

200.6

44.6

181.3

129.1

82.3

595.4

Page 24

C ompany Des c riptions - C urrent Month C apital Market Ac tivity C ompany

HQ

Webs ite

Des cription

B alihoo

United S ta tes

www.balihoo.com

B alihoo, Inc. provides local marketing automation technology and s ervices . T he company offers Local Marketing Automation s olution, which compris e W orld-C las s Ad B uilder, which allows to dis tribute brand-approved templates by nationa l marketing and cus tomiz e by local marketers acros s various marketing vehicles ; Integrated Ma rketing P lanning which enables local a ffiliates to plan integrated marketing campaigns a cros s va rious mediums from a s ingle location; fulfillment and local media buying back-end, which s implifies local marketing management; Local Marketing R eporting and Metrics that provides vis ibility into marketing activities at the local level compris ing total s pend, media s election, and res ults reporting tools . It als o provides creative, implementation, local media and marketing planning and implementation, a nd training s ervices . T he company s erves franchis e ma rketers , dis tributed marketers , and nationa l brands . B alihoo was formerly known a s E centrality, Inc. a nd changed its name to B alihoo, Inc. in 2008. T he company was founded in 2004 and is ba s ed in B ois e, Ida ho.

B ill.com

United S ta tes

www.bill.com

B ill. com, Inc. offers an electronic cas h management s ervice. Its s ervice s implifies the way companies ma nage bills , invoices , contracts , and other documents . T he company delivers its s ervice through an on-demand S oftware a s a S ervice (S aaS ) model. C as hV iew is a W eb-bas ed s ys tem that allows companies to s tore all documents , proces s es , mes s ages , and trans a ctions in one place. It gives companies a real-time daily view of anticipated cas h flow while s imultaneous ly proces s ing trans actions . T he compa ny was formerly known as C as hV iew, Inc. a nd changed its name to B ill. com, Inc. in J anuary, 2008. B ill. com, Inc. was founded in 2006 and is bas ed in P alo Alto, C alifornia.

B oxee

United S ta tes

www.boxee.tv

B oxee T V , Ltd. develops media center s oftware. T he company’s s oftware enables its us ers to control media programs s tored in the pers onal computer or the Internet doma in, and brings them to the televis ion. It enables its us ers to view, rate, and recommend content to their friends through s ocial networking features , as well as its s ocial component allows s haring with friends . T he company was founded in 2007 and is bas ed in New Y ork, New Y ork.

C hes s C ube

S outh Africa

www.chesscube.com

E do Interac tive

United S ta tes

www.edointeractive.net

C hes s C ube, is an online game allowing us ers to play ches s for free and maintain their online rating, s ocialize in chat rooms and invite friends to play ches s . T he company is bas ed in S outh Africa. edo interactive, Inc. develops technologies for digital marketing. T he company focus es on Marketing P latform, a behavioral targeting and marketing platform that allows bus ines s es to create micro-targeted ma rketing campa igns ; monitor the campaign from their computer; target k ey cons umer groups us ing demogra phic, geographic, a nd ps ychographic cons umer information to filter a nd build targeted campa igns ; and offers demons trable s ales revenue res ults . It offers P rewarding, a tool that gives cas h incentives directly to cons umers in advance of des ired purchas ing behavior through their pre-pa id debit Mas terC ard; C as h, a s ys tem that provides cas h rewa rds to loyal cus tomers ; and MarketIQ , which provides rea l-time feedback from cus tomers through s urveys and focus group tools . T he company was founded in 2007 and is bas ed in Na s hville, T ennes s ee.

F riends R eunited

United K ingdom

www.friendsreunited.co.uk

F riends R eunited G roup operates as an online community that connects people through a network of friends . It provides an online meeting place for people to s ocializ e, ma ke acqua intances , and find others who s hare their interes ts . T he company a ls o ena bles members to look up friend’s W eb pages , and s hare photos and videos . In addition, it offers online da ting s ervices . T he compa ny is bas ed in the United K ingdom. F riends R eunited G roup operates as a s ubs idia ry of IT V plc.

G igP ark

C a nada United S ta tes

www.gigpark.com www.ilike.com

G igP ark (www. gigpa rk. com) is a s ocia l recommendations tool to find the trus ted s ervice people that friends us e

iL ike

InnoC entive

United S ta tes

www.innocentive.com

F ounded in 2001, InnoC entive built the firs t global web community for open innova tion, enabling s cientis ts , engineers , profes s iona ls and entrepreneurs to collaborate to deliver brea kthrough s olutions for innovative organiz ations . InnoC entive S eekers , who collectively s pend billions of dolla rs on R &D, s ubmit C hallenges to the InnoC entive Marketpla ce where more than 160, 000+ engineers , s cientis ts , inventors , bus ines s people, a nd res earch organiz ations in more than 175 countries a re invited to s olve them. S olvers who deliver the mos t innovative s olutions receive financial awards ra nging up to US $1, 000,000. InnoC entive’s S eekers include commercial, government and non-profit organiz ations s uch as P rocter & G amble, Avery Dennis on, P endulum, E li L illy and C ompany, J a ns s en, S olvay, G lobalG iving and T he R ockefeller F oundation

iS ocket

United S ta tes

www.isocket.com

iS yndica

United S ta tes

www.isyndica.com

Is ocket Inc. offers online s ervices and operates platform for s elling online ads . Is ock et Inc. was founded in 2007 a nd is bas ed in Mountain V iew, C alifornia. iS yndica, a cloud-ba s ed digital media dis tribution platform, s implifies online s elling by s yndica ting, promoting and tracking us er content on multiple es tablis hed channels . iS yndica’s Upload O nce - S ell E verywhere™ approa ch helps us ers increas e revenue while reducing their work load. B uilt on Amazon W eb S ervices (AW S ), our V irtua l Dis tribution S erver (V DS ) is a groundbreaking, patent pending, multi-category s oftware-as -a-s ervice (S aaS ) dis tribution platform. iS yndica currently s upports photogra phy a nd video.

K oda

United S ta tes

www.koda.us

K ODA was founded with a mis s ion to create a pla tform that allows emerging talent and s ma rt companies to go beyond the res ume or traditional job pos ting. More profes s ional than F acebook but more pers onal than LinkedIn, K ODA looks to s howcas e profiles and employer profiles that allow both s ides of the hiring equa tion to get to know each other.

L inks ify

United S ta tes

www.linksify.com

MediaMath

United S ta tes

www.mediamath.com

L inks ify C orporation offers online s ervices and operates contact information s ha ring s ys tem. L inks ify C orporation was founded in 2009 and is bas ed in R ichmond, C alifornia. Media Math, LLC provides cros s -exchange a dvertis ing management s ervices and technology. T he company offers S ingularity, a media buying platform for advertis ing a gencies , which provides technology, s trategy, s ervices , and ins ights to trade a cros s dis play a dvertis ing exchanges on behalf of advertis ers . Media Math, LLC was founded in 2007 and is bas ed in New Y ork, New Y ork .

Mint

United S ta tes

www.mint.com

Mint S oftware, Inc. provides a W eb-bas ed s olution for online fina ncial mana gement. It offers money mana gement, debt management, expens e tracking, inves tment ma nagement, budget management, mutual fund, IR A management, a nd financial pla nning s ervices . T he company als o provides s ugges tions bas ed on us er’s s pending patterns and a utomatic categorization of purcha s es . Mint S oftware, Inc. was founded in 2006 and is bas ed in Mountain V iew, C a lifornia .

MOG

United S ta tes

www.mog.com

OneR iot

United S ta tes

www.me.dium.com

MOG , Inc. operates as a n online community for mus ic lovers . It enables us ers to find new mus ic, watch mus ic videos , and read news a nd reviews tha t match pers onal ta s te in mus ic. T he company was founded in 2005 and is headquartered in B erkeley, C alifornia. O neR iot, Inc. opera tes as a s earch engine that finds the puls e of the W eb. It ena bles us ers to find the news , videos , pictures , blogs , and products , as well as provides ins tant acces s to s chool ema ils , weather, nightlife guides , and local news for campus es . T he company was formerly known a s Me. dium, Inc. and changed its name to O neR iot, Inc. in November 2008. OneR iot, Inc. wa s founded in 2006 and is headqua rtered in B oulder, C olorado with additional offices in S an F rancis co, C alifornia.

OurS tage

United S ta tes

www.ourstage.com

O urS ta ge, Inc. offers a democra tic competition that allows fa ns to decide the bes t artis t in entertainment in the United S tates . Its O urS ta ge. com allows the artis t to upload their mus ic or video, and decide which competition to enter, s o that the Internet a udience judges the work s ide by s ide with the work of others . At the end of ea ch month, the top performers enter into the company’s S MS text voting period, where the artis t in each channel with the mos t S MS votes wins the priz e. OurS tage, Inc. was founded in 2006 and is bas ed in C helms ford, Mas s achus etts .

P olyVore

United S ta tes

www.polyvore.com

P olyvore, a fa s hion 2. 0 company founded by the man res pons ible for Y ahoo P ipes , lets us ers mix and ma tch complete outfits by dragging a nd dropping clothing images found on the web. It’s part s ocia l network, and part des igners ’ club, the end res ult being a place where us ers can put together their dream outfit or learn about the lates t fas hions from other us ers .

iLike. com, Inc. operates as a s ocial mus ic dis covery s ervice and mus ic application on s ocia l networking s ites in the United K ingdom and L atin America. It offers iLike S idebar for fans , which s cans mus ic library, recommends mus ic, and connects friends and the iLike community, a s well as offers a lerts on concerts and favorite artis ts . T he company a ls o provides iLike Univers al Artis t Da s hboard for a rtis ts to manage their online pres ence. In addition, it offers a mus ic-promotion platform for promoters to create multimedia a ds to target us ers by location and mus ic tas te; and enables W eb s ite or application developers to add mus ic features . F urther, the company provides t-s hirts for men and women online. iLike. com, Inc. was formerly known a s E volution Artis ts , Inc. T he company wa s founded in 2002 and is bas ed in S eattle, W as hington. As of Augus t 19, 2009, iLike. com, Inc. operates as a s ubs idiary of MyS pace, Inc.

Page 25

C ompany Des c riptions - C urrent Month C apital Market Ac tivity C ompany

HQ

Webs ite

Des cription

R ichR elevance

United S ta tes

www.richrelevance.com

richrelevance, Inc. provides pers ona liza tion and product recommenda tion tools for the eC ommerce s ites . It offers R ichrecs , which offers product recommenda tions to pers onaliz e cus tomer's s hopping experience; myrecs that enga ges loyal s hoppers with a pers onalized pa ge of releva nt product recommendations ; and richmail, which enables cros s -s elling a nd up s elling of relevant products . richreleva nce, Inc. was founded in 2005 and is headquartered in S an F rancis co, C alifornia. It has loca tions in S an Diego, C alifornia; Dallas a nd Hous ton, T exas ; and New Y ork, New Y ork.

R oblox

United S ta tes G ermany

www.roblox.com www.scoreloop.com

R oblox C orpora tion develops online gaming s oftware. R oblox C orpora tion was founded in 2004 and is bas ed in P ortola V alley, C alifornia.

S coreloop

S mith & Tinker

United S ta tes

www.smithandtinker.com

S mith & T inker, Inc. provides hybrid ga mes that bridge the gap between clas s ic offline tabletop pla y and online digital entertainment for kids . It offers Nanovor that delivers weekly a nimated W ebis odes , comics , a graphic novel, a field guide, and retail pres ence. T he company was founded in 2007 and is bas ed in B ellevue, W as hington.

Traffiq

United S ta tes

www.traffiq.com

T R AF F IQ , Inc. , a dis pla y advertis ing mark etplace, operates a digital media management platform that connects buyers and s ellers of online media. Its platform provides a s uite of enterpris e tools that enables negotiations for deal points and centraliz ed advertis ing operations , including trafficking, inventory management, tra cking a nd optimiz ation, and billing. T he company’s pla tform incorporates components of the media planning, buying, and s elling proces s , including s ite s earch, inventory pa ckaging tools , negotiation management, order execution, a utomated R F P dis tribution, campa ign optimiz ation, a nd publis her reconciliation/invoicing. It s erves advertis ers and publis hers . T he company was founded in 2006 and is bas ed in New Y ork, New Y ork with an additional office in V ienna, V irginia.

Tremor Media

United S ta tes

www.tremormedia.com

T remor Media, Inc. , an online video a dvertis ing network , provides video advertis ing s olutions . T he company focus es on offering advertis ers with in banner and in-s trea m video a dvertis ing on publis her s ites with various video s treams . It als o offers Acudeo V ideo Monetization P latform, a s uite of products and s ervices to monetiz e s treaming video; a nd s ervice s olution, which provides tools for advertis ers and publis hers to utiliz e online video advertis ing as a medium. T he compa ny creates cus tom vertical channels for various fields , including a utomotive, bus ines s /finance, ca reers , entertainment, fa mily/parenting, games , health and fitnes s , kids , men's and women's , mus ic, news a nd information, s hopping, s ports , technology, a nd teen travel. T he company was formerly known as T remor Network. T remor Media, Inc. is bas ed in New Y ork, New Y ork.

Turbine Inc.

United S ta tes

www.turbine.com

T urbine, Inc. , an interactive media company, engages in developing, launching, and operating online entertainment in North America . It offers online games , including multiplayer online role-pla ying games . T he company operates s ocial gaming communities . It als o s ells its games through reta ilers in North America and E urope. T urbine, Inc. was formerly known a s T urbine E ntertainment S oftware C orp. T he company was founded in 1994 and is headquartered in W es twood, Ma s s achus etts .

Z2L ive

United S ta tes

www.z2live.com

Z2L ive, a mobile multiplayer ga ming platform, was formed to leverage the new capa bilities of mobile devices , the s eamles s flow between mobile and W eb communities and the advent of cons umer-focus ed marketplaces . T he compa ny was founded in 2009 by Damon Danieli, a 14-year Micros oft veteran, David B luhm, a long time veteran of mobile content and entertainment and Madrona V enture G roup, a S ea ttlebas ed venture capital firm. Z2L ive’s mis s ion is to enable multipla yer gaming acros s all mobile devices and all wireles s networks .

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

S coreloop AG opera tes as a s ocial gaming platform for the mobile devices . It cooperates with players of the mobile gaming va lue cha in, including game developers , aggrega tors , publis hers , and portals . S coreloop helps developers differentiate their games from the competition a nd genera te new revenue s treams even for free games . S coreloop AG was founded in 2008 and is bas ed in Munich, G ermany.

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

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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 ) .

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M ontr eal 51 4. 39 9. 150 0

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