09-09-15 Web 2.0 Weekly

SOFTWARE & SERVICES

15 SEPTEMBER 2009

WEB 2.O WEEKLY

DAVID SHORE, CFA, MBA 416.860.6784 [email protected]

MINTY FRESH: FROM $50,000 TO $170,000,000 IN THREE YEARS INT UIT A CQ UI R E S M INT . COM F O R $17 0,0 00, 000 – O R O V E R $10 0 P ER U NI QU E Exactly three years after winning the $50,000 grand prize at TechCrunch40, Mint.com announced that it was being acquired by Intuit for $170 million. The deal values Mint’s Unique Visitors (UV) at a lofty $113 per UV, well ahead of recent acquisitions. For example, Facebook acquired FriendFeed for a rumoured $47.5 million in August – or under $50 per UV, while Club Penguin, Bebo, and People Media were done in the $20-$30/UV range.

E s timated Value per Unique Vis itor $120 $113

$100

($)

$80

$60

$48

$40 $29 $22

$20

$20

$7

$5 $2

$Mint. com

F riendF eed

C lub P enguin

B ebo

P eople Media

S kype

S tumbleUpon

F riends R eunited

S ep-09

Aug-09

Aug-07

Ma r-08

J ul-09

S ep-09

May-09

Aug-09

September remains slow financing month: Only eight financing transactions have been announced in September, with the largest transaction thus far the $9 million financing for InXpo (Virtual W orlds). The total for September so far is just $37.4 million, averaging $4.7 million per financing. Total capital raised in August was $208.5 million, averaging $7.7 million (27 deals); July on 35 transactions was $191.4 million, averaging $5.5 million; and June (42 deals) was $204.7 million (averaging $4.9 million). A strong price performance week: Twenty-eight of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with only seven companies showing negative returns on the week. After the biggest rise last week, DigitalTown (OTCBB:DGTW ) fell the most with a -14.3% return, while Quepasa (OTCBB:QPSA) had the best return, rising 25% in the week. This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0

Montreal 514.399.1500

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

Calgary 403.265.7400

Regina 306.566.7550

Page 2

THE WEB 2.0 UNIVERSE Ninety-one public Web 2.0 companies: Our W eb 2.0 universe contains 91 companies, with a combined market cap of ~$67 billion (Figure 1). The median market cap for the group is ~$45 million, with average trailing revenue of ~$160 million (median $53 million). The companies are also generally profitable, with a median EBITDA margin of 12.5%. On a valuation basis, the overall average is 5.2x trailing revenue (median 1.7x) and 12.7x trailing EBITDA (median 10.1x). 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 ocia ted Media Holdings Inc. B igs tring C orp. B eta wave C orpora tion B eyond C ommerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C hangyou. com Limited C hina G ateway C orporation C hines e G amer Interna tional C LIC K E R Inc. C ornerW orld C orporation 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 anada, Inc. F rogs ter Intera ctive P ictures AG G ama nia Digital E nterta inment C o. , Ltd. G ameO n C o L td. 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 ntertainment Limited K AB Dis tribution Inc. K ings oft C o. Ltd. Lingo Media C orpora tion 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 orporation NetDragon W ebS oft, Inc. Neteas 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 NI Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S handa Intera ctive E ntertainment 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 L td. T he P arent C ompa ny T he9 Limited T heS treet. com, Inc. T ota l S port O nline AS T ree.C om, Inc. U nis erve C ommunications C orp. U nited O nline Inc. U OMO Media, Inc V alueC lick Inc. V OIS , Inc. W ebzen Inc. W izzard S oftware C orpora tion W orlds . com Inc. W oozyF ly, Inc. W ynds torm C orporation 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 6/30/2009 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 6/30/2009 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 XTI T S X: F MN FR G 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 XV : LM LV W D LO O 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 PWR D T S XV : P N QP S A R BCI S NDA S F LY A066270 S TVI S NMN S MV I S C LW 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 : U S S U NT D U O 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 KRW 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 KRW US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KRW 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 KRW 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 KRW US D US D US D US D US D US D US D HK D US D US D US D NOK US D C AD US D US D US D US D US D US D US D US D US D E UR KRW KRW

U nited S tates S outh K orea J apa n U nited S tates U nited S tates U nited S tates U nited S tates U nited K ingdom U nited S tates Hong K ong C hina U nited S tates T a iwan U nited S tates U nited S tates C a nada Italy Malays ia U nited S tates U nited S tates U nited S tates U nited S tates S outh K orea U nited S tates U nited S tates G ermany T a iwan J apa n F inla nd C hina T a iwan S outh K orea J apa n J apa n S outh K orea U nited S tates C a nada C a nada Aus tralia C a nada C hina C a nada U nited S tates U nited S tates U nited S tates J apa n S weden Aus tralia S witzerland S outh K orea C hina C hina C a nada U nited S tates J apa n India C a nada U nited S tates C hina C a nada U nited S tates R us s ia C hina U nited S tates S outh K orea U nited S tates U nited S tates U nited S tates U nited S tates C hina U nited S tates U nited S tates C hina U nited S tates C hina U nited S tates Norway U nited S tates C a nada U nited S tates C a nada U nited S tates U nited S tates S outh K orea U nited S tates U nited S tates U nited S tates U nited S tates G ermany S outh K orea S outh K orea

C urrent P ric e 0. 60 18, 100 51, 600 0. 01 0. 02 0. 07 0. 20 0. 01 0. 23 2. 77 40.54 0. 02 440 0. 01 0. 06 1 7. 11 0. 58 0. 00 0. 06 1. 50 0. 38 855 0. 18 1. 42 18.78 48.05 101, 300 0. 05 8 4. 83 1. 71 8, 700 258, 900 4, 025 19.40 0. 15 0. 06 0. 37 1 9 1. 00 0. 04 1. 17 0. 01 556000.00 289.50 0. 07 4. 44 35700. 00 6 42.57 1. 03 1 29250. 00 43.15 35.68 2. 87 43.42 1. 88 2 1. 05 51.42 14.86 9150.00 0 0. 01 0 0. 49 65.84 2 0 126 0. 02 8. 17 2. 65 0. 03 7. 83 0. 05 7. 80 0 11 0 2. 94 0. 55 0. 11 0. 15 0. 10 32.85 9, 310 4, 240

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

16. 8 127.9 31. 0 0.6 1.2 2.0 9.3 6.2 19. 5 293.6 2, 229.7 0.3 1, 137.4 0.4 5.7 77. 1 168.2 38. 0 0.0 4.2 41. 0 20. 2 50. 7 8.0 69. 4 69. 2 224.3 108.3 65. 5 1, 705.1 263.3 47. 5 2, 153.5 328.0 72. 2 2, 568.6 10. 5 2.9 15. 6 84. 8 1, 224.3 11. 6 1.2 20. 0 4.2 947.4 2, 725.4 5.3 91. 2 615.4 394.2 5, 509.7 109.5 33. 5 40. 1 31. 1 2, 003.4 239.6 2, 135.5 59. 9 22. 3 145.7 3, 433.2 378.3 314.0 4.3 0.0 0.0 21. 7 2, 523.9 44. 9 10. 7 29, 516. 3 0.4 205.0 81. 1 0.1 84. 6 1.0 653.9 11. 7 975.2 3.3 34. 9 27. 8 5.7 2.6 1.8 252.7 114.3 18. 5

4. 4 106. 3 65.4 0. 1 0. 1 9. 4 11.7 0. 3 0. 0 361. 6 241. 2 6. 7 56.8 2. 5 3. 9 91.0 241. 1 76.8 NA 1. 0 NM 0. 6 15.1 NM 5. 3 3. 3 140. 2 81.0 5. 4 198. 5 183. 6 48.0 154. 3 118. 2 59.4 1, 392. 3 0. 0 1. 6 16.6 68.8 139. 1 1. 2 10.6 56.8 0. 1 135. 3 1, 961. 1 1. 3 40.0 202. 8 89.3 472. 3 21.5 0. 7 92.0 82.1 785. 7 191. 7 255. 6 21.3 0. 2 154. 7 628. 9 218. 6 188. 5 3. 5 2. 0 0. 1 0. 0 485. 1 50.5 0. 1 1, 391. 3 112. 0 250. 5 67.0 2. 3 216. 6 24.3 949. 8 0. 9 563. 6 0. 0 22.7 5. 3 0. 1 NM NA 58.6 56.1 11.6

(3.7) 25. 3 (1.9) (2.3) (1.5) (12. 6) (12. 8) (1.9) (4.6) 25. 1 147. 2 (6.6) 31. 8 (1.2) NM 9.8 31. 7 11. 1 NM (1.4) (2.5) (3.4) (3.6) NM (5.1) (6.4) 25. 1 19. 8 (17. 4) 124. 1 NM 16. 3 92. 7 26. 3 1.4 52. 7 (0.8) (5.1) 7.1 4.0 61. 4 (1.9) (0.1) (4.4) (2.5) 45. 7 301. 3 (2.6) 0.8 54. 4 25. 7 297. 4 (13. 0) (6.2) 6.8 (41. 1) 205. 1 5.3 142. 2 2.3 (10. 6) 20. 2 296. 6 27. 3 12. 3 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. 9 12. 1 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. 9% 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% 28. 7% 63. 0% -60. 3% NM 7.4% -50. 0% 26. 1% 2.8% 55. 6% 11. 0% NM 13. 1% 47. 2% 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%

4.9x 0.9x 0.1x 15. 6x 35. 1x 1.3x 22. 4x 0.8x 8.1x 0.0x 18. 9x 0.2x 4.1x 0.6x 0.9x 0.7x 6.3x 36. 3x 3.5x 11. 6x 20. 1x 1.4x 0.4x 12. 1x 1.0x 13. 2x 2.5x 1.0x 0.6x 1.2x 0.6x 8.9x 8.8x 0.0x 6.1x 1.7x 3.2x 2.4x 3.0x 2.9x 4.6x 0.4x 2.6x 0.7x 0.7x 2.7x 0.0x 1.4x 1.7x 0.8x 1.1x 4.5x 4.2x 0.8x 23. 3x 0.2x 0.2x 4.6x 0.4x 0.2x 1.0x 14. 1x 1.5x 5.4x 3.4x 2.2x -

3. 8x 11.5x 13.3x 33.7x 5. 8x 6. 9x 4. 8x 8. 0x 1. 7x 22.0x 11.2x 42.7x 15.7x 1. 3x 20.2x 18.1x 10.9x 11.1x 9. 9x 9. 9x 24.6x 1. 2x 24.7x 0. 2x 11.5x 25.6x 2. 9x 9. 6x 4. 0x 47.6x 8. 5x 4. 5x 8. 5x 11.9x 10.2x -

11 NA NA 3 4 51 101 9 46 2, 227 628 37 NA 22 16 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 79 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, 421 347 1, 626 310 16 700 NA 1, 469 NA 1, 189 4 328 110 1 NA NA 246 NA NA

29, 516. 3 0.0 738.1 44. 9

1,961. 1 0.0 160.4 53.3

680.2 -41.1 38.5 1. 2

63. 0% -98. 9% 6.0% 12. 5%

36. 3x 5.2x 1.7x

47.6x 12.7x 10.1x

6,421 1 890 210

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 ) September remains slow financing month: Only eight financing transactions have been announced in September, with the largest transaction thus far the $9 million financing for InXpo (Virtual W orlds). The total for September so far is just $37.4 million, averaging $4.7 million per financing. Total capital raised in August was $208.5 million, averaging $7.7 million (27 deals); July on 35 transactions was $191.4 million, averaging $5.5 million; and June (42 deals) was $204.7 million (averaging $4.9 million).

Financing Activity Last Twelve Months 400.0

18.0 16.2 16.0

350.0 14.6

14.0 300.0

12.0 250.0 10.0 (US$m)

(US$m)

9.7 200.0 7.7 7.0

7.0

6.6

6.5

150.0

8.0

7.1 6.2 5.5

6.0

4.9

4.7

100.0 4.0

50.0

2.0

0.0

0.0 Sep-08

Oct-08

*May-09 includes $200m FB investment

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

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09 Total

Apr-09 Average

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Skype Mint People Media Super Rewards Turbine Friends Reunited AdLink Internet Media Pandora Media Smith & Tinker NowPublic iLike xoopit MediaMath Kontera Ltd. Ning RichRelevance QuickPlay Media Traffiq Causes InXpo Edo Interactive Bill.com Outspark Jobvite ConnectEdu Riot Games Acquia, Inc SBNation InnoCentive OneRiot Balihoo Metaversum iMemories HiveLive Invodo Boxee Polyvore Fanbase MOG Jambool YuMe Quikr India Pvt. Ltd. Nexage OPEN Sports StyleCaster TweetDeck OurStage Z2Live KODA Scoreloop Busca MashLogic ProtonMedia Akademos Roblox iSocket Greystripe iLoop Mobile Tremor Media Comunitae RightsFlow Lat49 Aloqa Plista FourSquare Tiny Pictures EduFire ChessCube Thread Tributes.com CoTweet Clikthrough Cellufun Cognitive Match BookFresh People Capital Linksify iSyndica Masher Media Gigpark

(US$m)

Page 4

Mint acquired for $170 million: Just one month after raising $14 million, and three years exactly after winning TechCrunch40’s $50,000 grand prize, Mint.com agreed to be acquired by Intuit for $170 million. Investors had sunk a total of ~$32 million into Mint. An acquisition that did not work out for investors was the $1.3 million transaction for Tiny Pictures, acquired by ShutterFly, which had raised over $10 million previously. For additional details on financings, see Figures 23 and 24 (at end of note).

Financing & M/A Summary - Last Three Months

200.0

180.0

160.0

140.0

120.0

100.0 Sep-09

Aug-09

Jul-09

80.0

60.0

40.0

20.0

0.0

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

Page 5

Advertising remains the most active sector: Advertising-related companies continue to see the most activity by number of transactions (10), followed by the Gaming sector (eight transactions) and the Social Network sector, also with eight transactions (Figure 4). The $2.0 billion acquisition of Skype skews the dollars transacted to the SMS/Voice segment, while the $170 million acquisition of Mint brings the Vertical Communities segment to the second highest total. Capital Market Activity by Sector - Last Three Months 200.0 180.0 160.0 140.0

(US$m)

120.0 100.0 80.0 60.0 40.0

98.5

82.0

80.0

73.9

64.5

40.0

37.3

18.2

17.7

12.5

12.0

10.0

8.6

8.0

7.0

5.0

4.1

4.0

3.2

1.0

0.5

0.5

Gaming

Social Networks

Online Dating

Virtual World

Music

Infrastructure

Crowdsourced Content

Video

Mobile

Comment/Reputation

Online Learning

Enterprise

Media

Blog

Search

Virtual Goods

Classified

Mobile Ad

Microblog

Analytics

Online Calendar

Online Lending

SMS/Voice

100.1 Advertising

2,025.0 197.5 0.0

Vertical Communities

20.0

5

10

8

8

1

5

5

5

3

4

4

1

3

3

2

1

1

1

1

2

1

1

1

1

# companies 1

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

Page 6

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 continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance 180 160 140 120 100 80 60 40 20

^COMP - Share Pricing Figure 5. Web 2.0 Price Performance Source. Capital IQ

Index: Web 2.0 (Market Cap)

9/14/2009

8/31/2009

8/17/2009

8/3/2009

7/20/2009

7/6/2009

6/22/2009

6/8/2009

5/25/2009

5/11/2009

4/27/2009

4/13/2009

3/30/2009

3/16/2009

3/2/2009

2/16/2009

2/2/2009

1/19/2009

1/5/2009

12/22/2008

12/8/2008

11/24/2008

11/10/2008

10/27/2008

10/13/2008

9/29/2008

9/15/2008

0

Page 7

A strong price performance week: Twenty-eight of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with only seven companies showing negative returns on the week. After the biggest rise last week, DigitalTown (OTCBB:DGTW ) fell the most with a -14.3% return, while Quepasa (OTCBB:QPSA) had the best return, rising 25% in the week.

1 Week P rice P erformance Quepas a Corp. CDC Corp. DA DA S pA Fluid Mus ic Canada , Inc. S hutterf ly , Inc. TheS treet.com, Inc. Perfect World Co., Ltd. V alueClick Inc. PNI Digital Media Inc. G ree, Inc. United Online Inc. The9 Limited S ohu.com Inc. Cy berplex Inc. Tree.Com, Inc. Ngi G roup Inc. Changy ou.com Limited S handa Intera ctive IA C/InterA ctiveCorp. Open Tex t Corp. Openw ave S y s tems Inc. Mix i, Inc. Webz en Inc. G ameOn Co Ltd. XING A G A Q Interactive, Inc. G igaMedia Ltd. Netea s e.com Inc. LookS mart, Ltd. Lingo Media Corporation Giant Interactive G roup, Inc. S park Netw orks , Inc. Modern Times G roup Mtg A B Frogs ter Interactive Pictures Gravity Co., Ltd NeuLion Incorporated DigitalTow n, Inc. -0.2 Figure 6. 1-Week Price Performance Source. Capital IQ

25.0% 16.4% 12.1% 11.8% 11.4%

9.1% 9.0% 9.0% 7.4% 7.0% 6.6% 5.8% 5.1% 5.0% 4.8% 4.1% 3.8% 3.5% 3.3% 2.7% 2.5% 2.4% 1.7% 1.7% 1.5% 1.2% 0.8% 0.1% 0.0% 0.0% -1.6% -3.1% -3.8% -3.9% -5.0% -6.4% -14.3% -0.15

-0.1

-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

Page 8

P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S ) K ey Developments C ompany

Headline

NetDragon W ebS oft, Inc . (S E HK : 777)

NetDra gon W ebS oft, Inc., 0. 082 (HK D), C a s h Dividend, NetDragon W ebS oft, Inc. , 0.082 (HK D), C as h Dividend, S ep-07-2009 S ep-07-2009 S ha nda Intera ctive E ntertainment Ltd. Announces B oa rd S handa Intera ctive E nterta inment L td. a nnounced the res igna tion of B runo W u from the B oa rd of Directors of the C ompany, effective C ha nges S eptember 1, 2009. C oncurrently, the C ompany a nnounced the appointment of Mr. K a i Zha o to the B oa rd of Directors of the C ompany, effective immedia tely. Mr. Zhao previous ly s erved as dea n of the J ourna lis m S chool of F uda n Univers ity, s ecreta ry genera l of the C hina C ommunis t P arty (C C P ) committee of W enhui-X inmin United P res s News paper G roup, chief editor of Liberation Da ily a nd s ecreta ry general of the C C P committee of S hanghai Municipa l R adio, F ilm a nd T elevis ion B ureau a s well a s in various managerial roles a t S ha ngha i Municipal R adio and T elevis ion B urea u, O rienta l R adio S ta tion, S ha ngha i P eople's R a dio S tation and Qinghai Daily.

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

Notes

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

G eoS entric L aunches G yP S ii Next G eneration Us er Interfa ce

G eoS entric Oyj announced the la unch of the G yP S ii next generation us er interface for J ava phones opens up a whole new market of potential G yP S ii us ers , and provides the type of full-colour, s eamles s a nd feature-rich us er-experience us ua lly only s een on applications for a dva nced, high-end s martphones . Us ing G yP S ii on a typical J ava hands et from leading ma nufa cturers s uch as Nokia a nd S ony E rics s on, cons umers ca n quickly and ea s ily crea te a nd s hare with other G yP S ii members loca tion-s pecific content and pla ces . W ith G yP S ii they can a ls o explore their local s urroundings for friends , and acces s informa tion a nd conta ct deta ils on nea rby points -of-interes t all from their mobile phone. T o crea te the enhanced J ava UX (us er experience), G yP S ii drew on its extens ive experience developing for s martphone pla tforms s uch a s S ymbian, W indows Mobile, a nd the iP hone. G yP S ii is a ls o pre-loaded on a range of hands ets from S ams ung, L G and G armin giving it unrivalled market rea ch.

Open Text C orp. (Nas daqG S : OTE X)

C entral B edfords hire C ouncil S elects Open T ext as K ey E na bler for T rans formation

O pen T ext C orp. announced that newly formed C entra l B edfords hire C ouncil has s elected the Open T ext E C M S uite to deliver the functiona lity to facilita te regulatory a nd pra ctica l requirements for Document and R ecords Mana gement, to integra te with enterpris e-wide B us ines s P roces s es a nd deliver content over the web. As part of the project, C entra l B edfords hire will migra te a ll relevant documents and records to the newly deployed Open T ext E C M S uite and is creating a s tra tegy to implement Document and R ecords Management a cros s a ll of the councils depa rtments . T he council's s trategy to manage its information a nd content, es ta blis hing effective and efficient bus ines s proces s es , will help meet the requirements outlined in the G overnment commis s ioned G ers hon a nd V a rney reports ; improving communica tion cha nnels with citizens , and s a fely s toring a ll records a nd da ta in a robus t a nd s ecure environment. T he new council ha s s ignificant s avings targets to meet a nd will be undertaking a review of a ll ma jor s ervices to ma ke them more cus tomer-orienta ted, efficient a nd effective. T he council will s eek to make a s ma ny public documents , s tored within the s ys tem, ava ilable through their new internet s ite a s pos s ible.

K ings oft C o. L td. (S E HK : 3888); Mic ros oft C orporation (Nas daqG S : MS F T)

Micros oft C orpora tion and K ings oft C o. Ltd. to L aunch Mes s enger P rotection S hield

Micros oft C orporation a nd K ings oft C o. Ltd. will tea m up to la unch Mes s enger P rotection S hield for the numerous W indows L ive Mes s enger us ers . T he move can efficiently block malicious webs ites , curb the s prea ding of us eles s mes s ages , and ens ure the s ecurity of files . MS N, a product of the US -ba s ed s oftwa re titan, is the No. One ins ta nt mes s aging platform in the world by us er number.

Open Text C orp. (Nas daqG S : OTE X)

Open T ext O utlines V ignette S trategy a nd P roduct P lans

O pen T ext C orp. announced pla ns to expa nd its s uite of next-generation W eb s olutions with products a nd technologies from recently a cquired V ignette playing a centra l role. O pen T ext's pla ns are an extens ion of the compa ny's s tra tegy to ma intain its leaders hip in comprehens ive E C M s olutions . O ffered as part of the Open T ext E C M S uite, the s olutions will help orga niza tions es ta blis h deeper connections to cus tomers a nd us e the W eb a s a cha nnel for new revenues . Q uickly evolving s ocial networking, digital media and mobile a pplica tions a re moving the W eb beyond bra nd promotion to become a core component of bus ines s s trategy. B ringing thes e technologies together for a more powerful online experience is critica l to enga ging cus tomers in new ways , improving the effectivenes s of ma rketing progra ms a nd guiding changes in bus ines s s trategy tha t can increa s e revenue a nd improve operations .

TheS treet.com, Inc . (Nas daqG M: TS C M) T heS treet.com Inc. Decla res Quarterly C as h Dividend P ayable on S eptember 30, 2009 Tenc ent Holdings L td. (S E HK : 700) S handa Interactive E ntertainment L td. (Nas daqG S : S NDA) Neteas e.com Inc . (Nas daqG S : NTE S ) C hangyou.c om L imited (Nas daqG S : C YOU)

T encent Holdings Ltd. Announces R evenue R es ults for the S econd Quarter of 2009 S ha nda Intera ctive E ntertainment Ltd. Announces R evenue R es ults for the S econd Q ua rter of 2009 Netea s e.com Inc. Announces R evenue R es ults for the S econd Quarter of 2009 C ha ngyou. com Announces L aunch of 'B lade Hero 2'

T heS treet. com Inc. announced tha t its board of directors has decla red the compa ny's qua rterly cas h dividend on its common s tock. T he cas h dividend of $0.025 per s hare of common s tock will be paya ble on S eptember 30, 2009, to all s hareholders of record at the clos e of bus ines s on S eptember 15, 2009. T encent Holdings L td. announced revenue res ults for the s econd quarter of 2009. F or the qua rter, the company reported revenues of C NY 1.24 billion up 36% qua rter on qua rter a nd ta king up 20. 2% of the ma rket s hare. S handa Intera ctive E nterta inment L td. a nnounced revenue res ults for the s econd quarter of 2009. F or the qua rter, the company reported revenues of C NY 1.23 billion up 14% accounting for 20% of the ma rket s hare. Neteas e. com Inc. a nnounced revenue res ults for the s econd qua rter of 2009. F or the qua rter, the company reported revenues of C NY 780 million s tanding at 12. 7% of the market s hare. C hangyou. com L imited a nnounced that it ha s launched B lade Hero 2, the C ompa ny's new 2. 5D martia l a rts -s tyle fighting ma s s ively multiplayer online role-playing ga me. B la de Hero 2, created a s a s equel to the C ompany's exis ting ga me B la de O nline, features a fighting a nd tea m-combat s ys tem that allows pla yers to experiment with a uthentic fighting techniques a nd wea pons from different s ects of martial arts , including the us e of hidden weapons , a s well a s deploy C hines e combat s trategies in ba ttles . B lade Hero 2 a ls o employs the C ompa ny's dyna mic graphic technology, which ca n exhibit deta iled fighting moves and other s pecia l effects to enha nce the virtua l fighting experience. B la de Hero 2 began its ultimate clos ed beta tes ting and is now publicly a va ilable for game players to downloa d. All ga me a ccount da ta will be s aved perma nently without ca ncella tion.

W izzard S oftware C orporation (AME X: W ZE )

W izza rd Media R eleas es T hirteen New Apps on the App W izzard S oftware C orpora tion announced the la unch of thirteen new clas s ic a udio book podcas t Apps , bringing the tota l to twenty-nine, S tore targeting s tudents hea ding ba ck to s chool facing a lis t of required rea ding. Now, s tudents ca n lis ten to the full a udio vers ion of clas s ic books s uch a s T he T hree Mus keteers , G ulliver's T ra vels , T reas ure Is la nd, P ha ntom of the Opera, T he Hunchba ck of Notre Dame, E dgar Allan P oe C ollection and the P rince and the P auper, on their iP hone(T M) or iP od(R ) T ouch as s treaming podcas ts through cus tomized Apps . W izzard continues to crea te a variety of high-quality podca s t Apps to be marketed through ta rgeted podca s ts a nd enjoyed on the iP hone(T M) a nd iP od(R ) touch. T hes e clas s ic books are not only convenient a nd a ffordable but, a re profes s iona lly rea d and recorded.

W izzard S oftware C orporation (AME X: W ZE )

W izza rd Media Acquires E xclus ive Dis tribution R ights to Mega App, Ibons a i

W izzard Media a nnounced the acquis ition of exclus ive dis tribution rights to mega App, iB ons ai, currently for s ale through the App S tore for us e on iP hones (T M) and iP od(R ) touch. Adding to its fa s t growing ros ter of premium iP hone Apps , W izza rd Media acquired the rights to this highly regarded App ba s ed s olely on its future s a les potential and ta rgeta bility through W izzard's podca s t ma rketing a nd dis tribution network. W izzard ha s focus ed its recent App a cquis ition efforts on qua lity, timeles s Apps tha t match up well with highly ta rgeted podcas t audiences genera ting app developers a nd podcas ters revenues for the s ale a nd promotion of the Apps . iB ons a i will ta rget audiences of yoga, meditation a nd wellnes s podcas ts as well a s other s imila r s hows on the W izza rd Network.

J umbuck E ntertainment L imited (AS X: J MB )

J umbuck E ntertainment Limited, 0. 02 (AUD), C a s h Dividend, S ep-10-2009

J umbuck E nterta inment L imited, 0.02 (AUD), C as h Dividend, S ep-10-2009

Page 9

3Di Inc .; Ngi G roup Inc. (TS E : 2497); NTT Inves tment P artners Inc.

3Di Inc. a nnounced that it ha s received ¥500 million in funding from Ngi G roup Inc. a nd NT T Inves tment P artners Inc.

3Di Inc. a nnounced tha t it has rais ed ¥500 million in a round of funding on S eptember 10, 2009. T he compa ny is s ued common s ha res in the round. T he round s aw pa rticipa tion from NT T Inves tment P artners Inc. a nd exis ting inves tor Ngi G roup Inc.

P NI Digital Media Inc . (TS XV: PN)

P NI Digita l Media Inc. P owers Marks & S pencer's New Online P ers onalis ed G reeting C a rd S ervice

P NI Digital Media Inc. a nnounces the P NI Digita l Media P latform will power Marks & S pencer's new online greeting card s ervice, M& S P ers onalis ed C a rds . T he new online M& S P ers onalis ed C a rds s ervice offers cons umers the chance to ea s ily crea te one-of-a -kind greeting cards , fea turing fully cus tomizable mes s a ges on a ny of the 1, 200 T igerprint(T M)-des igned themes , a ll powered by the P NI Digital Media P la tform. C ons umers ca n add their own mes s ages a nd then ins tantly preview their pers ona lis ed card online before being s ent for delivery a nywhere in the UK . W ith themes covering a ll manner of s pecial occa s ions and a ha ndy C a rd F inder fea ture to help filter choices , wellwis hers ca n ea s ily ma tch tha t perfect card to the s entiment they wis h to convey.

Melodeo, Inc.; W izzard S oftware C orporation (AME X: W ZE )

W izza rd Media and Melodeo P a rtner on iP hone App for P op S upers ta r Us her

W izzard S oftware C orpora tion ha s partnered with Melodeo, purveyors of the s ucces s ful nuT s ie line of digita l mus ic products , on Us her's T op 100, a n iP hone a pp fea turing 100 of the pop s upers ta r's fa vorite s ongs in a s trea ming pla ylis t. Us her is currently a W izza rd Network podca s ter. Us her's T op 100 will a llow lis teners to s trea m popula r mus ic to their mobile phone, purcha s e mus ic through iT unes , downloa d and lis ten to it anywhere or a ny time in high qua lity s tereo. T he App will s ell for $2.99 and the dea l calls for a revenue s ha re between the pa rties .

TheS treet.com, Inc . (Nas daqG M: TS C M) T heS treet.com, Inc., $ 0. 025, C a s h Dividend, S ep-112009 G ia nt Intera ctive G roup Inc. , Annual G enera l Meeting, G iant Interac tive G roup, Inc. S ep 11, 2009 (NY S E : G A)

Myriad G roup AG (S W X: MYR N)

Figure 7. Key Developments Source. Capital IQ

Myriad G roup Introduces W idget S olution for Ultra-Low C os t Mobile P hones

T heS treet. com, Inc. , $ 0.025, C as h Dividend, S ep-11-2009 G iant Interactive G roup Inc. , Annua l G eneral Meeting, S ep 11, 2009, a t 15:00 C C T -C hina C oa s t, US S R Zone 7. L ocation: 7F 2nd B uilding, 396 G uilin R oad, Xuhui Dis trict, S ha nghai, 200233, C hina . Agenda: T o re-elect J as on Na nchun J ia ng a nd P eter Andrew S chlos s as Directors of the company; to a ppoint E rns t & Y oung Hua Min a s Independent Auditor for the fis cal yea r 2009. Myria d G roup AG launched Myriad Dynamic Homes creen, a technology innova tion which enables graphical web-bas ed widgets on the world's mos t afforda ble mobile phones , even thos e s elling for a s little as $10 or $15 in India , Africa a nd La tin America . W idgets are s ma ll a pplica tions that dis play wea ther reports , horos copes , s ports s cores and other informa tion directly on the mobile phone's home s creen, without requiring the us er to s croll through menus or s earch for an a pplica tion. In wealthier markets s uch a s E urope, mobile widgets ha ve a lready proven popula r on expens ive feature phones and s ma rt phones , and are being added to a n increa s ing ra nge of ma s s ma rket phones . Myria d Dyna mic Homes creen is AJ AX -bas ed a nd us es technology, s tanda rds and developer tools common in the mobile indus try. Myria d ha s alrea dy ported its new widget s olution acros s multiple chips et vendors , including 16-bit R T O S a nd AR M7 100MHz des igns . T he s oftware ha s a n exceptionally low entry point for s ys tem res ources , requiring les s than 500K b R OM a nd 500K b R AM.

Page 10

VALUATION Online Gaming companies lead market-cap charts: Thirteen companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 8). Fifty-seven of the 91 companies have market caps under US$100 million, with 25 under US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap near US$30 billion.

Market C ap (US D m) 29516.3 5509.7 3433.2 2725.4 2568.6 2523.9 2229.7 2153.5 2135.5 2003.4 1705.1 1224.3 1137.4 975.2 947.4 653.9 615.4 394.2 378.3 328.0 314.0 293.6 263.3 252.7 239.6 224.3 205.0 168.2 145.7 127.9 114.3 109.5 108.3 91.2 84.8 84.6 81.1 77.1 72.2 69.4 69.2 65.5 59.9 50.7 47.5 44.9 41.0 40.1 38.0 34.9 33.5 31.1 31.0 27.8 22.3 21.7 20.2 20.0 19.5 18.5 16.8 15.6 11.7 11.6 10.7 10.5 9.3 8.0 6.2 5.7 5.7 5.3 4.3 4.2 4.2 3.3 2.9 2.6 2.0 1.8 1.2 1.2 1.0 0.6 0.4 0.4 0.3 0.1 0.0 0.0 0.0

Tenc ent Holdings Ltd. Neteas e.c om Inc. S handa Interac tive Entertainment Ltd. Modern Times G roup Mtg A B IA C/InterA c tiveCorp. S ohu.c om Inc . Changy ou.c om Limited G ree, Inc. Perf ec t W orld Co., Ltd. Open Tex t Corp. G iant Interac tive G roup, Inc. K ings oft Co. Ltd. Chines e G amer International V alueClic k Inc. Mix i, Inc. United Online Inc. NEOWIZ G ames Corporation NetDragon W ebS oft, Inc . S hutterfly , Inc. GungHo Online Entertainment, Inc. S K Communic ations Co., Ltd. CDC Corp. G igaMedia Ltd. X ING A G Openw ave S y s tems Inc . Gamania Digital Entertainment Co., The9 Limited DA DA S pA OA O R B C Inf ormation S y s tems A c toz S oft Co., Ltd. Y edangOnline Corp. NeuLion Inc orporated GameOn Co Ltd. My riad Group A G K A B Dis tribution Inc . Tree.Com, Inc . TheS treet.com, Inc. Cy berplex Inc . HanbitS oft, Inc . Fluid Mus ic Canada, Inc. Frogs ter Interac tive Pic tures A G GeoS entric Oy j PNI Digital Media Inc . Eolith Co. Ltd. G ravity Co., Ltd S park Netw orks , Inc . DigitalTow n, Inc . Ngi G roup Inc . DXN Holdings B hd Webz en Inc. NeX plore Corporation Northgate Tec hnologies Limited A Q Interactive, Inc . Wiz z ard S oftw are Corporation Quepas a Corp. S oc ialw is e, Inc. Dolphin Digital Media, Inc . LookS mart, Ltd. B roadWebA s ia Inc. Y nk K orea Inc. A c c eleriz e New Media, Inc . J umbuc k Entertainment Limited UOMO Media, Inc Lingo Media Corporation S pec trumDNA , Inc . IA S Energy , Inc. B ey ond Commerc e, Inc . Ex tens ions , Inc. B right Things plc CornerWorld Corporation Worlds .c om Inc. MOK O.mobi Limited S NA P Interactive, Inc . DigitalPos t Interactive, Inc . Magnitude Information S y s tems Inc . V OIS , Inc. is eemedia Inc . W ooz yFly , Inc. B etaw ave Corporation Wy nds torm Corporation LiveWorld Inc . B igs tring Corp. Unis erve Communic ations Corp. A s s oc iated Media Holdings Inc . CLICK ER Inc . The Parent Company China Gatew ay Corporation Total S port Online A S S NM G lobal Holdings Dibz International, Inc. S oc ial Media V enures , Inc. 0 Figure 8. Market Cap Ranking Source. Capital IQ

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Page 11

TEV/Revenue (LTM) averages 5.2x: The overall average TEV/Revenue (LTM) multiple for our group is 5.2x (vs. 6.0x last week) (Figure 9). Two companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 35.1x and Dolphin Digital Media, Inc. (OTCBB:DPDM) at 36.3x. The median is only 1.7x. 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) 40. 0 36.3 35.1

35. 0 30. 0 25. 0

23.3 22.4 20.1 18.9

20. 0 15. 0

13.2 11.6 12.1

10. 0 A v erage, 5. 2

0. 0

4.1 4.2 3.2 3.4 3.5 2.4 2.5 2.6 2.7 2.9 3.0 1.7 1.7 2.2 1.5 1.5 1.4 1.4 1.3 0.8 0.8 0.8 0.9 0.9 1.0 1.0 1.0 1.1 1.2 0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.6 0.6 0.6 0.7 0.7 0.7

5.4 4.54.6 4.6 4.9

8.8 8.9

6.1 6.3

AQ Intera ctiv e, Inc. Unis erv e C ommunic ations C L IC K E R Inc. T he P a rent C ompa ny T heS treet.com, Inc. N orthgate T ec hnologies G ameO n C o L td. T ree.C om, Inc. J umbuc k E ntertainment Limited IAC /InterActiveC orp. C y berplex Inc. P erfect World C o., Ltd. O penwave S y s tems Inc. DXN Holdings B hd S N AP Intera ctiv e, Inc. C DC C orp. S park Network s , Inc. DADA S pA Actoz S oft C o., Ltd. United O nline Inc. H anbitS oft, Inc. G iga Media Ltd. S N M G lobal Holdings is eemedia Inc. B ey ond C ommerc e, Inc. G a mania Digita l E nterta inment S hutterfly , Inc. V alueC lic k Inc. Y nk K orea Inc. S K C ommunic ations C o., L td. Modern T imes G roup Mtg AB Y edangO nline C orp. My riad G roup AG G ungH o O nline E ntertainment, O pen T ex t C orp. P NI Digita l Media Inc. NetDragon WebS oft, Inc. N E O WIZ G ames C orporation MO K O .mobi Limited XIN G AG E olith C o. Ltd. C ornerWorld C orporation S ohu.com Inc. S oc ial Media V enures , Inc. T otal S port O nline AS NeuLion Inc orporated Acceleriz e New Media , Inc . Wiz z ard S oftware Mix i, Inc. DigitalP os t Interactiv e, Inc. C ha ngy ou.c om L imited L ingo Media C orporation K ings oft C o. Ltd. F luid Mus ic C anada, Inc. G eoS entric O y j G ree, Inc. UO MO Media, Inc As s ociated Media Holdings C hines e G amer International F rogs ter Interactiv e P ictures B right T hings plc T encent Holdings Ltd. B igs tring C orp. Dolphin Digital Media, Inc.

5. 0

8.1

15.6 14.1

Figure 9. 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 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (19), trading at an average multiple of 11.5x (vs. 12.4x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 5.6x revenue (vs. 7.6x last week) (Figure 11). Ten of the companies are Canadian (average 4.4x revenue). Average TEV/LTM Revenue - By Exchange

Average TEV/LTM Revenue - By Country

25.0 22.4

25.0 22.4

20.0

20.0 12.1 11.8 11.7 11.510.2

(x)

12.1

11.8

10.0

8.0 7.1

5.0

5.6 4.6 4.5

4.4 2.4 2.0 1.9 1.7 Sweden

Italy

Hong Kong

Malaysia

India

Russia

1

Australia

39

South

3

Switzerland

10

Japan

# Companies

0.7 0.4 0.0

Canada

Taiwan

2

United

China

1

Norway

Finland

Germany

1

6

10

1

8

2

1

1

1

1

1

1

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

Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ

0.9 0.8

0.0 United

RTS

BSE

0.4 0.3 0.0 NasdaqGM

CM

0.9 0.7 KLSE

OM

1.9 1.7

ASX

2.0

NasdaqGS KOSE

OSE

3.2 3.1 2.5 2.4 2.0 SWX

OTCPK

TSE OTCNO

GTSM

SEHK

XTRA

AIM # Companies

HLSE

0.0

OTCBB

5.0

TSX

5.6 5.0 4.63.6

TSXV

10.0

15.0

AMEX

(x)

15.0

Page 12

TEV/EBITDA (LTM) averages 13.1x: The average multiple for the 36 companies with positive EBITDA (and multiples under 100x) is 13.1x LTM EBITDA (vs. 12.7x last week), led by Tencent Holdings (SEHK-700) 47.6x multiple (Figure 12). Eleven companies have EBITDA multiples under 7x. The median multiple is 10.6x (vs. 9.9x last week). T E V/L T M E B IT DA (x) 60. 0

47. 6

50. 0 42. 7 40. 0 33. 7 30. 0

24. 6 24. 7 25. 6 18. 1

T enc ent Holdings L td.

H anbitS oft, Inc.

C hines e G amer International

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

P NI Digital Media Inc .

G ree, Inc .

O penwave S y s tems Inc .

K ings oft C o. L td.

Mix i, Inc .

Y nk K orea Inc.

C hangy ou. c om L imited

13. 3 14. 4

XING AG

C DC C orp.

S hutterfly , Inc.

G ungH o O nline E ntertainment, Inc .

NE O WIZ G ames C orporation

Y edangO nline C orp.

Modern T imes G roup Mtg AB

NetDragon WebS oft, Inc .

11. 1 11.2 11.5 11.5 11.9 9. 6 9. 9 9. 9 10. 2 10. 9

O pen T ex t C orp.

T heS treet. c om, Inc .

V alueC lic k Inc .

DADA S pA

G amania Digital E ntertainment C o. , Ltd.

C yberplex Inc .

DXN Holdings B hd

U nited O nline Inc .

S park Network s , Inc .

S NAP Interac tive, Inc .

G ameO n C o L td.

J umbuck E ntertainment L imited

P erfec t World C o. , L td.

0. 0

O AO R B C Information S y s tems

1. 7 2. 9 0. 2 1. 2 1. 3

Actoz S oft C o. , L td.

10. 0

8. 0 8. 5 8. 5 5. 8 6. 9 4. 8 4. 5 4. 0 3. 8

S ohu. c om Inc .

A verage, 13. 1

20. 2

15. 7

IAC /InterAc tiveC orp.

20. 0

22. 0

Figure 12. TEV/EBITDA Ranking Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (19), trading at an average multiple of 2.9x. On a geographic basis, the United States has the most companies (39), trading at an average of 10.0x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.5x EBITDA).

Average TEV/LTM EBITDA - By Exchange

Average TEV/LTM EBITDA - By Country

30.0 25.9

25.0 20.9

25.0

20.0 24.7 20.9 18.7

18.7

# Companies

Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ

Switzerland

1

Russia

2

Australia

19

Malaysia

2

Italy

1

United States

4

0.0

Sweden

1

0.2

Hong Kong

5

1.3 Germany

1

4.8

Japan

14

0.0

6.9

Canada

1

5.0

China

CM

2

1.3 0.2

South Korea

NasdaqGM

5

13.5 13.3 11.9 11.5 10.9 10.0

Taiwan

OM

6

NasdaqGS

KOSE

2

OSE

GTSM

4

TSE

TSXV

3

XTRA

SEHK # Companies

5.8 4.8 4.0 2.9

RTS

6.9

5.0 0.0

17.0

10.0

ASX

8.5

OTCBB

10.0

AMEX

13.9 11.9 11.2 11.0 10.9

(x)

15.0

TSX

15.0

KLSE

(x)

20.0

3

8

10

10

6

2

1

1

39

1

1

2

1

1

Page 13

P/E (LTM) averages 18.6x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 18.4x LTM EPS (vs. 18.4x last week), led by GungHo Online Entertainment’s (OSE:3765) 71.7x multiple (Figure 15). Eleven companies have P/E multiples under 10x. The median is just 13.1x.

P /E L T M (x) 80.0 71.7 70.0 60.3 60.0 50.0

43.5

40.0

32.8 33.4

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.

K ings oft C o. Ltd.

NE O W IZ G ames C orporation

24.4 26.1

Worlds .com Inc.

Actoz S oft C o., Ltd.

G amania Digital E ntertainment C o., Ltd.

18.6 19.4

NetDragon W ebS oft, Inc.

C hangy ou.com Limited

14.9 15.3 16.1

S ohu.com Inc.

Modern T imes G roup Mtg AB

H anbitS oft, Inc.

Y edangO nline C orp.

S park Network s , Inc.

7.7

IAC /InterActiveC orp.

6.8

G ameO n C o Ltd.

6.3

12.1 12.3 12.4 13.1 13.2 10.4 10.9

G igaMedia Ltd.

4.5

S NAP Interactive, Inc.

S handa Interactive E ntertainment Ltd.

3.1

C y berplex Inc.

T he9 Limited

3.1

DXN H oldings B hd

2.5

J umbuck E ntertainment Limited

2.3

Neteas e.com Inc.

2.0 G iant Interactive G roup, Inc.

10.0

P erfect World C o., Ltd.

A verage, 18.6

20.0

22.0

XING AG

30.0

0.0

46.2 46.5

Figure 15. P/E Ranking Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (19), trading at an average multiple of 14.8x. On a geographic basis, the United States has the most companies (39), trading at an average of 13.5x earnings (Figure 17). Ten of the companies are Canadian (average 20.1x EPS).

XTRA

KOSE

OTCBB

OM

AMEX

NasdaqGS

TSX

KLSE

ASX

NYSE

NasdaqGM

5

3

2

2

6

19

1

2

14

4

1

2

1

5

Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ

# Companies

4.5 0.0 0.0 Italy

GTSM

1

6.3

Switzerland

SEHK

0.0

13.2 12.8

Australia

2.0

TSE

# Companies

4.5

OSE

0.0

6.3

Malaysia

10.0

13.2 12.3 10.8 6.8

14.4 13.5

South Korea

20.0

14.8

Sweden

19.2

20.1

United States

30.0

26.1

26.1 24.4

China

34.5 33.6 31.5

40.0

(x)

(x)

50.0

Canada

60.0

Taiwan

71.7

70.0

Average P/E - By Country 43.8

Germany

80.0

50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

Japan

Average P/E - By Exchange

6

2

3

10

10

39

1

8

1

2

1

1

Page 14

UPCOMING EVENTS

E arnings C alendar C ompany

Date & Time

Quarter

C onf C all Deta ils

NA

NA

NA

NA

Figure 18. Earnings Calendar Source. Company reports

Page 15

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

C urrency

Ticker

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 ocia ted Media H oldings Inc. B igs tring C orp. B eta wave C orporation B eyond C ommerce, Inc. B right T hings plc B roadW ebA s ia Inc. C DC C orp. C ha ngyou.com L imited 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 International, Inc. DigitalP os t Intera ctive, Inc. DigitalT own, Inc. Dolphin Digital Media, Inc. E olith C o. Ltd. E xtens ions , Inc. F luid Mus ic C anada , Inc. F rogs ter Intera ctive P ictures A G G amania Digita l E nterta inment C o. , Ltd. G ameO n C o Ltd. G eoS entric Oyj G ia nt Interactive G roup, Inc. G igaMedia Ltd. G ra vity C o., L td G ree, Inc. G ungH o Online E nterta inment, Inc. H anbitS oft, Inc. IAC /InterA ctiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E nterta inment L imited K AB Dis tribution Inc. K ings oft C o. Ltd. L ingo Media C orpora tion L iveW orld Inc. L ookS mart, L td. Ma gnitude Informa tion 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 NetDra gon W ebS oft, Inc. Neteas e. com Inc. NeuLion Incorpora ted NeXplore C orpora tion Ngi G roup Inc. Northgate T echnologies L imited O pen T ext C orp. O penwa ve S ys tems Inc. P erfect W orld C o., L td. P NI Digital Media Inc. Q uepa s a C orp. O AO R B C Informa tion S ys tems S ha nda Intera ctive E nterta inment L td. S hutterfly, Inc. S K C ommunications C o., Ltd. 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 ompa ny T he9 L imited T heS treet.com, Inc. T ota l S port O nline AS 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 orporation XING A G Y edangO nline C orp. Y nk K orea Inc.

US D KR W JPY US D US D US D US D GBP US D US D US D US D TWD US D 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 NOK 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 LZ A052790 3838 AS MH BS GC B W AV B Y OC AIM:B G T BWBA C H IN.A CY OU CGW Y 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 A B 3888 T S XV :L M LV W D LO O K 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 C LW S O HU LO V S P XA 700 K IDS .Q NC T Y TS CM TOS O TR E E T S XV :U S S UNT D UO MO V C LK V O IS W ZE N W ZE W DDD W ZY F W Y ND O1B C A052770 A023770

OTC B B K OS E TSE OTC P K OTC B B OTC B B OTC B B A IM OTC P K Nas da qG S Nas da qG S OTC P K GTS M OTC B B OTC B B TSX CM K LS E OTC P K OTC B B OTC B B OTC B B K OS E OTC P K TSX XT R A GTS M TSE H LS E NY S E Nas da qG S Nas da qG M TSE OS E K OS E Nas da qG S OTC B B T S XV AS X TSX S E HK T S XV OTC P K Nas da qG M OTC B B TSE OM AS X S WX K OS E S E HK Nas da qG S TSX OTC P K TSE BSE Nas da qG S Nas da qG S Nas da qG S T S XV OTC B B R TS Nas da qG S Nas da qG S K OS E OTC B B OTC P K OTC P K OTC B B Nas da qG S A ME X OTC B B S E HK OTC 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 OTC B B Nas da qG S OTC B B Nas da qG M A ME X OTC B B OTC B B OTC P K XT R A K OS E K OS E

16.8 127.9 31.0 0. 6 1. 2 2. 0 9. 3 6. 2 19.5 293.6 2,229.7 0. 3 1,137.4 0. 4 5. 7 77.1 168.2 38.0 0. 0 4. 2 41.0 20.2 50.7 8. 0 69.4 69.2 224.3 108.3 65.5 1,705.1 263.3 47.5 2,153.5 328.0 72.2 2,568.6 10.5 2. 9 15.6 84.8 1,224.3 11.6 1. 2 20.0 4. 2 947.4 2,725.4 5. 3 91.2 615.4 394.2 5,509.7 109.5 33.5 40.1 31.1 2,003.4 239.6 2,135.5 59.9 22.3 145.7 3,433.2 378.3 314.0 4. 3 0. 0 0. 0 21.7 2,523.9 44.9 10.7 29,516.3 0. 4 205.0 81.1 0. 1 84.6 1. 0 653.9 11.7 975.2 3. 3 34.9 27.8 5. 7 2. 6 1. 8 252.7 114.3 18.5

H igh L ow Average Media n

Figure 19. Price Performance Source. Capital IQ

746.1

C urrent P ric e 0.60 18,100 51,600 0.01 0.02 0.07 0.20 0.01 0.23 2.77 40.54 0.02 440.00 0.01 0.06 1.27 7.11 0.58 0.00 0.06 1.50 0.38 855.00 0.18 1.42 18.78 48.05 101,300 0.05 7.53 4.83 1.71 8,700 258,900 4,025 19.40 0.15 0.06 0.37 1 9 1.00 0.04 1.17 0.01 556, 000.00 289.50 0.07 4.44 35, 700.00 5.78 42.57 1.03 0.60 29, 250.00 43.15 35.68 2.87 43.42 1.88 1.75 1.05 51.42 14.86 9, 150.00 0 0.01 0.08 0.49 65.84 2 0 126 0.02 8.17 2.65 0.03 7.83 0.05 7.80 0.14 11.19 0.00 2.94 0.55 0.11 0.15 0.10 32.85 9,310 4,240

1 Wk

1 Mth

3 Mth

6 Mth

1 Yr

52 Week

5. 3% 4. 0% 1. 2% -30.0% -11.4% 0. 0% -4.8% 0. 0% -22.8% 16.4% 3. 8% -25.0% -2.8% -26.7% 0. 0% 5. 0% 12.1% 6. 4% 20.0% 0. 0% -14.3% -14.5% -10.0% -10.0% 11.8% -3.9% -5.6% 1. 7% 0. 0% -1.6% 0. 8% -5.0% 7. 0% 7. 9% 3. 1% 3. 3% 11.1% 20.0% -7.5% 0. 0% -2.1% 0. 0% -20.0% 0. 0% 2. 2% 2. 4% -3.8% -6.7% -1.1% -2.6% -0.2% 0. 1% -6.4% 9. 1% 4. 1% -5.1% 2. 7% 2. 5% 9. 0% 7. 4% 25.0% 0. 0% 3. 5% 11.4% 2. 1% -20.0% 185.7% -46.7% -12.5% 5. 1% -3.1% -2.2% 3. 0% 36.4% 5. 8% 9. 1% 0. 0% 4. 8% 0. 0% 6. 6% -2.1% 9. 0% -20.0% 1. 7% 27.9% 10.0% 0. 0% 0. 0% 1. 5% 6. 6% -0.2%

5.3% -19.7% 2.2% -30.0% -2.5% 16.7% -31.0% -1.8% -22.8% 6.1% 7.2% 650.0% -1.7% -31.3% 0.0% -25.3% 15.6% 17.2% NM 0.0% 15.4% -8.3% 8.2% 125.0% 5.2% 30.6% -18.0% -2.1% -16.7% -3.2% 2.8% -23.7% 8.8% 19.5% -7.4% 3.5% 0.0% 20.0% 0.0% 1.6% 5.5% 0.0% -33.3% -4.9% 53.3% -11.6% -1.2% 7.7% 4.5% 8.7% -16.0% 2.6% -5.5% -11.8% -11.6% 23.6% -9.7% -3.4% 12.9% 21.3% 25.0% 16.7% 11.1% -3.1% -11.6% 0.0% 200.0% -57.9% -27.9% 6.0% -3.5% 57.1% 11.4% 0.0% -3.9% 11.6% 0.0% -14.6% 0.0% 5.3% 1.5% 8.6% -46.7% -4.2% 12.2% 10.0% NM 0.0% 19.0% 4.5% -13.8%

71.4% -31.3% -31.7% 833.3% -32.8% -30.0% -76.3% -8.3% -54.9% 84.7% 13.9% 650.0% 31.3% 111.5% -14.3% -29.4% 12.9% 43.2% 20.0% 161.9% -39.8% -31.6% 9. 6% 20.0% 89.3% 140.8% -16.3% -10.4% 25.0% -6.3% -15.6% 48.7% 45.5% 15.1% -16.1% 19.3% -21.1% -20.0% -9.8% 4. 8% 62.9% -11.5% -66.7% -10.0% -36.6% 24.1% 33.7% 7. 7% -11.0% 5. 2% 12.9% 21.0% 41.1% -13.0% -17.4% -2.5% -0.3% 21.1% 80.5% 11.2% 173.4% 6. 6% -4.0% 7. 2% -21.5% -42.9% 300.0% 700.0% -32.9% 2. 9% -6.8% -40.5% 40.3% -53.1% -20.1% 25.6% 0. 0% -4.9% -25.0% 22.4% -19.4% -5.7% 14.3% -21.4% -17.9% 22.2% 0. 0% 233.3% -3.0% 1. 5% -35.3%

160. 9% 62.3% 51.8% 180. 0% 21.9% -56. 3% -54. 5% -21. 4% -77. 2% 158. 9% NM 650. 0% 187. 6% -56. 0% -57. 1% 154. 0% 51.3% 107. 1% -88. 0% 511. 1% -50. 0% -23. 3% 48.7% 20.0% 305. 7% 230. 6% 64.6% 29.5% 66.7% 2.0% -15. 4% 171. 4% 87.9% 133. 0% 19.4% 30.2% 233. 3% -25. 0% -17. 8% 85.7% 222. 2% 23.5% -80. 0% 30.0% -51. 6% 79.4% 123. 1% 16.7% 11.0% 82.8% 70.0% 81.7% 148. 2% 3.4% 62.1% 42.2% 9.8% 239. 6% 243. 0% 21.3% 54.9% 238. 7% 44.1% 70.0% 23.6% -57. 9% 500. 0% -93. 3% 22.5% 47.9% -3.1% 10.0% 144. 2% 400. 0% -36. 7% 29.3% -25. 0% 63.5% -10. 0% 79.7% 95.7% 52.9% 0.0% 74.7% 71.9% -42. 1% 0.0% -16. 7% 17.4% 33.0% 21.5%

9. 1% 112.4% -25.0% -30.0% -61.0% -75.0% -92.0% -8. 3% -84.7% 13.1% NM -50.0% 671.9% -98.9% -70.0% 119.0% -30.6% 52.6% -97.6% 10.0% -64.7% -54.1% 42.5% 80.0% 1. 4% 201.4% 199.4% -27.8% 0. 0% 0. 4% -45.9% 33.6% NM 32.3% 9. 8% 13.4% -16.7% -57.1% -26.0% -9. 7% 278.3% -41.2% -83.3% -59.2% -45.9% -24.6% 2. 7% 105.9% -50.1% 254.3% 25.7% 73.1% NM 20.0% -75.1% -83.5% 1. 1% 120.8% 74.0% -23.3% -46.8% -86.2% 71.5% 44.0% -12.9% -55.1% -98.5% -85.5% -79.6% 1. 1% -47.5% -62.7% 124.8% -99.1% -56.4% -61.5% -40.0% -0. 5% -80.4% -26.1% -54.3% 1. 7% -73.3% 82.6% -59.3% -68.6% NM -83.3% 9. 2% 26.7% -60.0%

-9.1% -49.7% -45.3% -72.0% -70.0% -79.4% -92.3% -44.3% -92.1% -29.3% -16.2% -57.1% -15.2% -98.9% -87.2% -36.2% -34.2% -4.1% -97.6% -44.4% -66.7% -66.7% -26.3% -10.0% -5.3% -5.5% -30.2% -33.8% -16.7% -21.3% -50.9% -35.0% -0.6% -7.5% -39.4% -0.8% -46.4% -66.7% -39.3% -23.5% -8.1% -45.1% -84.0% -59.7% -69.3% -30.8% -7.2% -30.0% -53.3% -15.0% -19.2% -9.3% -2.8% -58.6% -77.1% -86.2% -11.2% -8.3% -3.5% -34.3% -47.4% -86.6% -20.9% -10.2% -28.8% -63.0% -99.4% -98.4% -80.8% -5.3% -51.1% -61.4% -3.7% -99.2% -58.0% -63.2% -40.0% -40.1% -82.0% -27.3% -87.1% -9.7% -82.6% -37.2% -68.2% -68.6% -96.3% -83.3% -4.5% -24.9% -65.8%

185.7% -46.7% 2.1% 0. 1%

650.0% -57.9% 11.1% 0.0%

833.3% -76.3% 37.1% 0. 8%

650. 0% -93. 3% 72.5% 44.1%

671.9% -99.1% 1.5% -24.8%

-0.6% -99.4% -44.6% -40.0%

Page 16

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

S ec tor

C ountry

P rimary E xc hange

Tic ker

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 etawave C orporation B eyond C ommerce, Inc. B right T hings plc B roadW ebAs ia Inc. C DC C orp. C hangyou. com L imited C hina G ateway C orporation C hines e G amer International 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 Intera ctive, Inc. DigitalT own, Inc. Dolphin Digital Media , Inc. E olith C o. Ltd. E xtens ions , Inc. F luid Mus ic C ana da, Inc. F rogs ter Intera ctive P ictures AG G amania Digita l E nterta inment C o., L td. G ameO n C o L td. G eoS entric Oyj G iant Intera ctive G roup, Inc. G igaMedia L td. G ravity C o., Ltd G ree, Inc. G ungHo O nline E ntertainment, Inc. H anbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E nterta inment L imited K A B Dis tribution Inc. K ings oft C o. L td. L ingo Media C orporation L iveW orld Inc. L ookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MOK O.mobi L imited Myria d G roup AG N E OW IZ G ames C orporation N etDragon W ebS oft, Inc. N etea s e.com Inc. N euL ion Incorporated N eXplore C orporation N gi G roup Inc. N orthgate T echnologies Limited O pen T ext C orp. O penwa ve S ys tems Inc. P erfect W orld C o. , Ltd. P N I Digita l Media Inc. Q uepas a C orp. O AO R B C Information S ys tems S handa Interactive E ntertainment Ltd. S hutterfly, Inc. S K C ommunications C o., Ltd. S N AP Interactive, Inc. S N M G lobal H oldings S ocial Media V enures , Inc. S ocialwis e, Inc. S ohu. com Inc. S park N etworks , Inc. S pectrumDNA, Inc. T encent H oldings L td. 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. U nis erve C ommunica tions C orp. U nited Online Inc. U OMO Media, Inc V a lueC lick Inc. V O IS , Inc. W ebzen Inc. W izzard S oftwa re C orpora tion W orlds .com Inc. W oozyF ly, Inc. W ynds torm C orpora tion XING A G Y eda ngO nline C orp. Y nk K orea Inc.

Direct Ma rketing 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 Ma rketing C ontent Advertis ing S ocial Networking S ocial Networking S N S 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 Learning S ocial Networking Direct Ma rketing S ocial Networking S ocial Networking Media S ocial Networking Mobile G aming G aming G aming V ideo C ontent Media Direct Ma rketing C ollabora tion Mobile G aming Digital Ima ging S ocial Networking Media G aming Digital Ima ging S earch Da ting Media S ocial Networking S ocial Networking G aming S ocial Networking Media P ortal Media G aming Media Media P ortal 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 apa n U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes U nited K ingdom U nited S ta tes H ong K ong C hina U nited S ta tes T aiwan U nited S ta tes U nited S ta tes C ana da Italy Ma lays 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 ermany T aiwan J apa n F inla nd C hina T aiwan S outh K orea J apa n J apa n S outh K orea U nited S ta tes C ana da C ana da A us tralia C ana da C hina C ana da U nited S ta tes U nited S ta tes U nited S ta tes J apa n S weden A us tralia S witzerland S outh K orea C hina C hina C ana da U nited S ta tes J apa n 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 ermany S outh K orea S outh K orea

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 Nas daqG S Nas 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 HLS E NY S E Nas daqG S Nas daqG M TS E OS E K OS E Nas daqG S OT C B B T S XV AS X TS X S E HK T S XV OT C P K Nas daqG M OT C B B TS E OM AS X SWX K OS E S E HK Nas daqG S TS X OT C P K TS E BSE Nas daqG S Nas daqG S Nas daqG S T S XV OT C B B R TS Nas daqG S Nas daqG S K OS E OT C B B OT C P K OT C P K OT C B B Nas daqG S AME X OT C B B S E HK OT C P K Nas daqG S Nas daqG M OT C N O Nas daqG M T S XV Nas daqG S OT C B B Nas daqG S OT C B B Nas 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

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 CLK 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 IA S A.E IE E AS X:J MB T S X:K A B 3888 T S XV :L M LV W D LO OK MAG Y 2121 MT G B MK B MY R N A095660 777 NT E S T S X:NLN NXP C 2497 590057 OT E X OP W V PWRD T S XV :P N QP S A R BCI S N DA S F LY A066270 STVI 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 UN T D UO MO V C LK V OIS W ZE N W ZE W DDD W ZY F W Y ND O1B C A052770 A023770

H igh L ow Average Median

Figure 20. 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

16. 8 127. 9 31. 0 0. 6 1. 2 2. 0 9. 3 6. 2 19. 5 293. 6 2,229. 7 0. 3 1,137. 4 0. 4 5. 7 77. 1 168. 2 38. 0 0. 0 4. 2 41. 0 20. 2 50. 7 8. 0 69. 4 69. 2 224. 3 108. 3 65. 5 1,705. 1 263. 3 47. 5 2,153. 5 328. 0 72. 2 2,568. 6 10. 5 2. 9 15. 6 84. 8 1,224. 3 11. 6 1. 2 20. 0 4. 2 947. 4 2,725. 4 5. 3 91. 2 615. 4 394. 2 5,509. 7 109. 5 33. 5 40. 1 31. 1 2,003. 4 239. 6 2,135. 5 59. 9 22. 3 145. 7 3,433. 2 378. 3 314. 0 4. 3 0. 0 0. 0 21. 7 2,523. 9 44. 9 10. 7 29,516. 3 0. 4 205. 0 81. 1 0. 1 84. 6 1. 0 653. 9 11. 7 975. 2 3. 3 34. 9 27. 8 5. 7 2. 6 1. 8 252. 7 114. 3 18. 5

4. 9x 0. 9x 0. 1x 15.6x 35.1x 1. 3x 22.4x 0. 8x 8. 1x 0. 0x 18.9x 0. 2x 4. 1x 0. 6x 0. 9x 0. 7x 6. 3x 36.3x 3. 5x 11.6x 20.1x 1. 4x 0. 4x 12.1x 1. 0x 13.2x 2. 5x 1. 0x 0. 6x 1. 2x 0. 6x 8. 9x 8. 8x 0. 0x 6. 1x 1. 7x 3. 2x 2. 4x 3. 0x 2. 9x 4. 6x 0. 4x 2. 6x 0. 7x 0. 7x 2. 7x 0. 0x 1. 4x 1. 7x 0. 8x 1. 1x 4. 5x 4. 2x 0. 8x 23.3x 0. 2x 0. 2x 4. 6x 0. 4x 0. 2x 1. 0x 14.1x 1. 5x 5. 4x 3. 4x 2. 2x 1. 5x

0. 9x 6. 3x 0. 5x 1. 3x 10.3x 1. 0x 0. 6x 2. 2x 0. 7x 3. 4x 2. 3x 1. 4x 3. 6x 0. 2x 0. 3x 0. 9x 1. 6x -

3.8x 11. 5x 13. 3x 33. 7x 5.8x 6.9x 4.8x 8.0x 1.7x 22. 0x 11. 2x 42. 7x 15. 7x 1.3x 20. 2x 18. 1x 10. 9x 11. 1x 9.9x 9.9x 24. 6x 1.2x 24. 7x 0.2x 11. 5x 25. 6x 2.9x 9.6x 4.0x 47. 6x 8.5x 4.5x 8.5x 11. 9x 10. 2x 14. 4x

8.1x 10.9x 4.8x 4.9x 8.2x 5.9x 6.4x 7.4x 7.2x 8.0x 12.9x 6.5x 3.9x 6.0x -

18.6x 15.3x 43.5x 6. 8x 6. 3x 19.4x 10.9x 2. 0x 10.4x 0. 0x 46.2x 71.7x 13.1x 12.1x 4. 5x 24.4x 46.5x 13.2x 32.8x 16.1x 3. 1x 33.4x 3. 1x 2. 5x 7. 7x 14.9x 12.3x 60.3x 2. 3x 0. 0x 22.0x 26.1x 12.4x -

13.7x 7. 7x 1. 5x 13.6x 9. 7x 36.9x 17.0x 12.7x 44.8x 15.0x 13.1x 17.9x 44.1x 11.1x 17.5x -

2. 1x 0. 5x 0. 4x 15.1x 16.4x 3. 0x 0. 8x 4. 7x 6. 4x 9. 2x 2. 9x 1. 3x 54.3x 0. 3x 2. 2x 0. 0x 21.4x 24.7x 2. 1x 1. 2x 2. 3x 1. 5x 1. 0x 6. 8x 20.5x 0. 5x 0. 8x 6. 4x 3. 6x 3. 9x 16.6x 2. 1x 0. 9x 7. 9x 0. 8x 3. 5x 1. 4x 20.6x 1. 0x 2. 3x 2. 4x 4. 9x 45.9x 26.8x 0. 1x 1. 0x 1. 1x 6. 3x 21.1x 0. 0x 8. 1x 3. 9x 0. 9x

29,516. 3 0. 0 746.1 46. 2

36.3x 0. 0x 5.2x 1. 9x

10.3x 0. 2x 2.2x 1. 3x

47. 6x 0.2x 13.1x 10. 2x

12.9x 3.9x 7.2x 6.9x

71.7x 0. 0x 18.6x 13.1x

44.8x 1. 5x 18.4x 13.7x

54.3x 0. 0x 7.6x 2. 7x

Page 17

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

United S tates

C hina

10

Avg US D Market C ap ($m) 48,876.9

US D L TM Total R ev ($m)

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

C hina

4, 887. 7

C hina

4,151.7

C hina

5, 384.6

S weden

2, 725. 4

United S tates

3,887.3

S weden

J a pa n

3, 608.3

J apan

601. 4

S weden

1,961.1 1,016.3

E B ITDA % 2,069.8

C hina

48. 8%

301.3

Aus tra lia

42. 8%

United S ta tes

290.4

T aiwan

36. 9%

C a na da

200.1

G ermany

28. 8%

S outh K orea

8

S weden

2, 725.4

T aiwan

541. 7

C a na da

J a pa n

6

C a na da

2, 372.5

Hong K ong

293. 6

S outh K orea

698.9

J apa n

189.4

J apan

24. 2%

T a iwa n

3

T a iwa n

1, 625.1

C ana da

237. 3

J a pa n

646.1

S outh K orea

120.4

S weden

15. 4%

Aus tra lia

2

S outh K orea

1, 377.0

S outh K orea

172. 1

T a iwa n

380.5

T a iwan

56.9

Mala ys ia

14. 4%

G erma ny

2

G erma ny

321.9

Italy

168. 2

Hong K ong

361.6

Italy

31.7

Italy

13. 1%

S witzerland

1

Hong K ong

293.6

G ermany

161. 0

Ita ly

241.1

Hong K ong

25.1

R us s ia

13. 1%

Hong K ong

1

Ita ly

168.2

R us s ia

145. 7

R us s ia

154.7

R us s ia

20.2

S outh K orea

12. 7%

F inla nd

1

R us s ia

145.7

United S ta tes

138. 1

India

82.1

Ma la ys ia

11.1

Hong K ong

6. 9%

Ita ly

1

S witzerland

Ma lays ia

76.8

G erma ny

10.5

S witzerland

1. 9%

91.2

91. 2

S witzerland

United K ingdom

1

F inla nd

65.5

F inland

65. 5

G erma ny

62.0

Aus tra lia

4.5

C ana da

-8. 5%

India

1

Ma lays ia

38.0

Mala ys ia

38. 0

S witzerla nd

40.0

S witzerland

0.8

United S ta tes

-21. 9%

S weden

1

India

31.1

India

31. 1

Aus tralia

17.9

Norwa y

-1.1

India

-50. 0%

R us s ia

1

Aus tra lia

20.9

Aus tra lia

10. 4

F inla nd

5.4

United K ingdom

-1.9

Norway

-50. 6%

Ma lays ia

1

United K ingdom

6.2

United K ingdom

6. 2

Norwa y

2.3

F inla nd

-17.4

United K ingdom

#DIV /0!

Norwa y

1

Norwa y

0.1

Norway

0. 1

United K ingdom

0.3

India

-41.1

F inland

#DIV /0!

G rand Total

90

G rand Total

67,152.1

746.1

G rand Total

G rand Total

13,786.1

G rand Total

3,270.8

G rand Total

6.0%

Figure 21. 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)

10, 378. 3

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

19

S E HK

31,134.8

S E HK

NY S E

62. 5%

Na s daqG S

14

Na s daqG S

23,413.0

OM

2, 725. 4

S E HK

539.9

S E HK

767.3

AS X

42. 8%

OT C P K

11

TS E

3, 280.3

NY S E

1, 705. 1

Na s daqG S

498.6

OM

301.3

S E HK

40. 6%

K OS E

6

OM

2, 725.4

Nas da qG S

1, 672. 4

CM

241.1

TS E

163.1

GTS M

36. 9%

TS E

5

NY S E

1, 705.1

GTS M

680. 9

NY S E

198.5

NY S E

124.1

Nas da qG S

30. 4%

Na s daqG M

5

GTS M

1, 361.7

TS E

656. 1

RTS

154.7

K OS E

101.9

XT R A

28. 8%

TS X

4

K OS E

1, 294.6

OS E

328. 0

OS E

118.2

GTS M

56.9

TS E

24. 6%

T S XV

4

TS X

340.9

K OS E

215. 8

TS E

105.6

CM

31.7

OS E

22. 2%

S E HK

3

OS E

328.0

CM

168. 2

K OS E

104.7

OS E

26.3

OM

15. 4%

AME X

2

XT R A

321.9

XT R A

161. 0

GTS M

98.5

R TS

20.2

K LS E

14. 4%

AS X

2

Na s daqG M

268.1

R TS

145. 7

Na s daqG M

82.2

Na s da qG M

15.4

CM

13. 1%

XT R A

2

OT C B B

198.0

SWX

91. 2

BSE

82.1

K LS E

11.1

R TS

13. 1%

GTS M

2

CM

168.2

TS X

85. 2

K LS E

76.8

XT R A

10.5

K OS E

9. 6%

SWX

1

RTS

145.7

HLS E

65. 5

TS X

46.7

AME X

6.2

Nas da qG M

7. 7%

OM

1,961.1

E B ITDA %

OT C B B

Na s da qG S

1,796.3

HL S E

1

SWX

91.2

Nas da qG M

53. 6

SWX

40.0

AS X

4.5

T S XV

5. 6%

CM

1

T S XV

75.4

K LS E

38. 0

XT R A

31.0

SWX

0.8

SWX

1. 9%

BSE

1

AME X

72.6

AME X

36. 3

AME X

27.9

O T C NO

-1.1

AME X

-31. 8%

NY S E

1

HL S E

65.5

BSE

31. 1

OT C P K

16.5

AIM

-1.9

TS X

-34. 7%

OS E

1

OT C P K

65.3

T S XV

18. 9

T S XV

12.1

TS X

-4.2

OT C B B

-38. 8%

AIM

1

K LS E

38.0

AS X

10. 4

AS X

8.9

T S XV

-4.6

OT C P K

-41. 5%

OM

1

BSE

31.1

OT C B B

10. 4

HL S E

5.4

HL S E

-17.4

BSE

-50. 0%

RTS

1

AS X

20.9

AIM

6. 2

OT C B B

2.3

OT C P K

-34.1

O T C NO

-50. 6%

K LS E

1

AIM

6.2

OT C P K

5. 9

O T C NO

2.3

BSE

-41.1

HLS E

#DIV /0!

1

O T C NO

0.1

O T C NO

0. 1

AIM

0.3

OT C B B

-62.4

AIM

#DIV /0!

O T C NO G rand Total

90

G rand Total

Figure 22. Comparison by Exchange Source. Capital IQ

67,152.1

G rand Total

746.1

G rand Total

13,786.1

G rand Total

3,270.8

G rand Total

6.0%

Page 18

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

Type of financing

Month

C ompany Name

J ul-09

P andora Media

C ountry US A

K ontera L td.

Is rael

Ning

US A

QuickP lay Media

C anada

C aus es

US A

Outs park

US A

8. 3

C onnectE du

US A

8. 2

Acquia, Inc

US A

S eries B

S eries C 35.0

S eries D

Grand Total 35.0

15. 0

15.0

12. 0

12.0

15.5

15.5

10.0

10.0 8.3 8.2

8.0

8.0

S B Nation

US A

8.0

8.0

US A

6.6

6.6

Metavers um

G ermany

6.3

6.3

iMemories

US A

6.2

6.2

Invodo

US A

6.0

6.0

J ambool

US A

5.0

5.0

Quikr India P vt. L td.

India

4.1

4.1

OP E N S ports network

US A

4.0

4.0

S tyleC as ter

US A

Nexage

US A

4.0

TweetDeck

UK

3.2

B us ca

US A

Akademos

US A

P rotonMedia

US A

iL oop Mobile

US A

4. 0

4.0 4.0 3.2 2.6

2.6

2.5

2.5 2. 5

2.5

2.0

2.0

C omunitae

S pa in

1.7

1.7

Aloqa

G ermany

1.5

1.5

L at49

C anada

Thread

US A

1. 5

1.2

Tributes .com

US A US A

C ellufun

US A

C likthrough

US A

1. 0

C ognitive Match L imited

UK

1. 0

B ookF res h

US A

P eople C apital

US A

Mas her Media

US A

US A

S mith & Tinker

US A

Mint

US A

R ichR elevance

US A

Traffiq

US A

MediaMath

US A

B ill.com

US A

E do Interactive

US A

1.2

1.2

1.0

1.0

1. 1

1.1 1.0 1.0

0.5

0.5 0.5

0.5

0.3 65.0

Turbine

1.5

1.2

C oTweet

0.3 11.1

36.8

51.5

50. 0 14.1 10.0

10.0

10.0

10.0 8. 5

8.5

B alihoo

US A

7. 0

B oxee

US A

MOG

US A

Z2L ive

US A

OurS tage

US A

K ODA

US A

S coreloop

G ermany

R oblox

US A

iS ocket

US A

Tremor Media

US A

R ights F low

US A

P lis ta

G ermany

8.5

8.5 7. 0

US A

14.1 12.5

US A

US A

50.0

12.5

US A

P olyvore

191.4

29.0

InnoC entive

F anbas e

27.0

29.0

OneR iot

7.3

7.3 7.0 7.0

6.0

6.0

5.6

5.6

5. 0

5.0 5. 0

5.0

3. 0

3.0 3.0

3.0

2.8

2.8

3.0

3.0

2.2

2.2 2. 0

2.0 2. 0

2.0

1. 5

1.5 1.4

1.4

C hes s C ube

S outh Africa

1.3

1.3

L inks ify

US A

0.5

0.5

iS yndica

US A

Aug-09 Total S ep-09

S eries A

MediaMath

J ul-09 Total Aug-09

Angel/S eed

0.4 25.8

0.4 11.5

77.6

InXpo

US A

J obvite

US A

8.3 8.0

R iot G ames

US A US A

Mas hL ogic

US A

G reys tripe

US A

F ourS quare

US A

1. 4

E duF ire

US A

1. 3

9.0 8.0 5.0

2. 5

2.5 2. 0

90.8

208.5

8.3 5. 0

S ep-09 Total

Figure 23. Financing, Last Three Months Source. Company reports

50.0

9. 0

YuMe

G rand Total

43.6

2.0 1.4 1.3

14.2

16.3

7.0

36.8

130.6

102.1

37.4 77.0

437.2

Page 19

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

HQ

Webs ite

Des c ription

E duFire

U nited S tates

www. edufire. com

E ducation R evolution, Inc. operates a s an online community tha t provides online live video tutoring s ervices . It offers tutoring s ervices for s tudents covering various la nguages a nd preparing s tudents for exams on video chat s es s ions . T he company wa s founded in 2007 and is ba s ed in S anta Monica, C alifornia.

F ourS quare

U nited S tates

www. fours quare. com

F ours quare S olutions Inc. des igns and develops s oftwa re for iphones . F ours quare S olutions Inc. is bas ed in New Y ork, New Y ork.

G reys tripe

U nited S tates

www. greys tripe. com

G reys tripe, Inc. operates an a d-s upported mobile games and applications dis tribution platform. T he company provides online gaming and inga me a dvertis ing s olutions through publis her s ites . Its AdW R AP product s uite ena bles brand advertis ers to communicate their brand mes s a ges to mobile a udience; publis hers to s erve a ds through their games ; and cons umers to downloa d games , as well a s delivers images , videos , a nd s crolling banners to mobile games and applications . T he compa ny’s s olutions a ls o include AdW R AP C ampaign Manager, an advertis ing W eb interface that allows advertis ing agencies and ad res ellers to create and monitor mobile in-game ad ca mpaigns ; AdW R AP C atalog P rogra m, which enables partners to dis tribute a mobile game catalog; and AdW R AP for P ublis hers platform that provides mobile ga me publis hers an automated proces s , which a d-enables mobile games a nd applications . It s erves developers , carriers and dis tributors , ga me players , a nd cons umer W eb s ites . T he company is bas ed in S an F rancis co, C alifornia.

HiveL ive

U nited S tates

www. hivelive. com

HiveL ive Inc. provides enterpris e s ocial s oftware platforms . T he company’s on-demand s oftware enables companies to deploy cus tom-fit enterpris e communities built around people, relations hips , and s hared knowledge. It offers L iveC onnect, provides a building-block approach for crea ting cus tom-fit online cus tomer communities ; and Hives , which are W eb 2. 0 building blocks that combine people, information, and permis s ions to crea te information res ources . HiveL ive Inc. was founded in 2006 and is bas ed in B oulder, C olorado.

InXpo

U nited S tates

www. inxpo. com

InX po is the leading provider of privately-branded virtual events , including V irtua l T rade S hows , V irtual C a reer F airs and V irtual C orporate E vents , as well as Audio a nd V ideo W ebcas ts . T hes e virtua l s olutions dramatically reduce tra vel time and related cos ts , in addition to making the world a greener place to live. InX po’s V irtual E vents provide P ublis hers with new online revenue opportunities and C orporations with the ability to generate leads , communica te, educate and network by connecting more effectively with their communities .

J obvite

U nited S tates

www. jobvite. com

J obvite, Inc. offers recruitment application that allows to collaborate on making hires . It s erves HR and s taffing executives , recruiters , hiring mana gers , executives , employees , and jobs eekers . T he compa ny was founded in 2003 as F orumJ obs and changed its name to J obvite, Inc. in 2006. J obvite, Inc. is ba s ed in S an F rancis co, C alifornia.

Mas hL ogic

U nited S tates

www. mas hlogic. com

Mas hL ogic Inc. offers mas hes to pers onaliz e the applications for the us ers and bloggers . It adds releva nt links to W ebs ites , pers ona lizes W eb pages , increas es vis ibility and rea ch of content and brand, and enriches W eb with links to s ources . T he company was founded in 2007 and is bas ed in Menlo P a rk , C alifornia.

Mint.c om

U nited S tates

www. mint. com

Mint S oftwa re, Inc. provides a W eb-bas ed s olution for online financial management. It offers money management, debt management, expens e tracking, inves tment management, budget management, mutua l fund, IR A management, and financial planning s ervices . T he company als o provides s ugges tions bas ed on us er’s s pending patterns and automatic categorization of purchas es . Mint S oftware, Inc. was founded in 2006 and is bas ed in Mountain V iew, C alifornia.

NowP ublic

C anada

www. nowpublic. com

NowP ublic T echnologies , Inc. , a participatory news network, owns and operates NowP ublic. com platform for citiz en journalis m. T he company provides politics , culture, entertainment, and life photos and video headlines . It s erves Internet us ers , bloggers , and photography enthus ias ts . T he company was founded in 2005 and is bas ed in V ancouver, C anada. As of S eptember 2, 2009, NowP ublic T echnologies , Inc. operates as a s ubs idiary of T he W as hington E xaminer.

R iot G ames

U nited S tates

www. riotgames . com

S kype

L uxembourg

www. s kype. com

R iot G a mes , Inc. develops and publis hes online video games . It offers online titles for cons oles and the P C s . T he company was founded in 2006 and is bas ed in L os Angeles , C alifornia. S kype T echnologies S . A. provides S kype, a s oftware that enables individuals and bus ines s es to mak e free video and voice calls , s end ins tant mes s ages , a nd s hare files with other S kype us ers . It a ls o enables to make calls to landlines and mobiles internationally. T he company als o provides heads ets , W ebcams , and phones through its online s hop. It s erves us ers in Argentina , B raz il, C hile, C olombia, Mexico, P eru, and V enezuela. T he company was founded in 2003 a nd is bas ed in L uxembourg. As of October 14, 2005, S kype T echnologies S . A. is a s ubs idiary of eB ay Inc.

Tiny P ic tures

U nited S tates

www. tinypictures . us

T iny P ictures , Inc. provides a s ervice for s ha ring of camera phone pictures a nd videos between friends . It offers R a dar, a s ervice that enables us ers to s hare camera phone pictures and videos with friends . T he company was founded in 2005 and is bas ed in S a n F ra ncis co, C alifornia. As of S eptember 10, 2009, T iny P ictures , Inc. operates as a s ubs idia ry of S hutterfly, Inc.

YuMe

U nited S tates

www. yumenetworks . com

Y uMe, Inc. operates as a video a dvertis ing network on W eb. It offers ad mana gement s ys tem that enables advertis ers a nd publis hers to identify, clas s ify, and track content through digita l media pla tforms , s uch as W eb, downloads , mobile, and IP T V . T he company als o enables publis hers to organiz e video on their s ite into content channels , s uch as automotive, financial s ervices , lifes tyle, news , mus ic, s ports , entertainment, and family friendly. In addition, it offers real-time targeting, meas urement, and optimization; content dis tribution and viral advertis ing opportunities ; a s uite of interactive ad placements ; and video monetiz ation s ervices . F urther, the company provides a behavioral targeting s ys tem tha t enables a dvertis ers to target their mes s ages to viewers on a nationa l s cale bas ed on video viewing interes ts and purchas e intent. Y uMe, Inc. was founded in 2004 and is headquartered in R edwood C ity, C alifornia.

Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase

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

None applicable.

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

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

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