Interpolls EXECUTIVE SUMMARY ‘Company Overview Founded in April 1999, Interpolls (the “Company”) is a pioneer and leader in rich media advertising technologies and interactive marketing solutions. The Company's proprietary products and services help advertisers achieve their online marketing objectives while providing consumers an experience more robust and engaging than standard display banners or text ads, Interpolls' rich media ad-serving solutions help marketers overcome the various limitations of display banner ads, online video, or other standard rich media formats common in the industry. The Company offers advertisers and publishers one of the most innovative rich media solutions including standard Flash-based ads, its well-known questions-based advanced ad formats, customized rich media ad formats, integrated sweepstakes and promotions, interactive television-to-Internet media products, and next-generation products such as Rich Media Widgets™. Interpolls is the only company in the industry that offers a ‘complete integrated marketing solution within a single platform to achieve the specific goals and objectives for advertisers, agencies, and web publishers. As a Tier I provider of rich media ad solutions, Interpolls has been certified and approved by thousands of web publishers using rich media including all of the leading portals and publishers. Interpolls works directly with leading Fortune 500 marketers such as Amgen, Novartis, AT&T, Unilever, NBC, Scion/Toyota Motors, all major entertainment studios (Universal, Sony, FOX, Paramount, Warner Bros, and more), as well as leading advertising agencies such as Optimedia (Publicis), GroupM (Mindshare, MEC, Beyond Interactive) Initiative Media, Moxie, and Universal McCann. The Company's publisher Pricing Network includes Yahoo!, AOL, MSN, MySpace, Facebook, Disney Interactive Group, and over 40+ leading Intemet portals, ad networks and publishers that have established pricing agreements and offer Interpolls products to clients and agencies at no additional cost, by including Interpolls' costs directly into the publisher rates ‘The Company's proprietary, two-way ad-serving technology platform is the only rich media platform architected in DHTML, unlike its competitors who are predominantly Flash-based and confined to third-party software and plug-ins. This gives the Company the unique capability and flexibility to provide a dynamic offering of ad formats that can combine Flash, JavaScript, XML, Silverlight, Twitter feeds, and other future programming languages feasible in web DHTML. Interpolls is the only rich media company that has created a single integrated solution that maximizes the full capabilities of all available online technologies, without dependence on other 4 party companies, software, plug-ins, or other technical limitations, This key technological difference allows Interpolls’ solutions to function on all operating systems and browser combinations, unlike any other rich media provider. Interpolls’ unique solution has proven to be among the top performing ad formats in online ad campaigns as measured in research studies done for multiple clients in various industry verticals by Dynamic Logic, Insight Express, Marketing Evolution and other market research firms Interpolls’ solutions have demonstrably inereased brand awareness, perception, purchase intent and user conversion, For example, Interpolls helped increase user conversion for a leading online dating company by 300%. The Company's patent-pending, two-way ad- serving technology allows Interpolls to provide innovative product formats, real-time optimizations, sel-checking error codes for serving ads, and additional technical capabilities unlike most ad-serving platforms that serve and place ad units “one-way” on to publisher pages. This differentiator allows Interpolls ad formats to communicate with each other on aInterpolls EXECUTIVE SUMMARY single page and dynamically update each ad unit based on user interactions or behavioral targeting, which also allows its products to communicate back to the Interpolls system for any necessary optimizations or real time updates. In addition to unique ad placement capabilities, Interpolls is the only rich media provider that allows for improved interactivity with users by providing real-time analytics and “on the fly” optimization of each ad unit across all web sites, per placement, on a client's media plan Optimizing various creative or features to improve results are automatically updated internally through the Interpolls system without requiring publishers or agencies to recreate ad units, re-issue creative ad tags, disrupt inventory delivery, and waste time and resources making changes during a campaign. The explosion of widgets on popular social networking sites such as MySpace and Facebook. has turned them into viable ad units for marketers. The interactivity and viral nature of widgets make them very attractive to marketers looking to extend their brand and engage influencers within their target audience with the portability of web widgets. By being first to market to provide widgets in a rich media ad format in 2007, Interpolls has addressed several key challenges facing the web widget industry: Interpolls is providing an etfective distribution channel and monetization for its clients and partners. Interpolls is currently the only provider that offers widgets in a rich media ad format that can be created, ad-served, hosted, tracked, and reported through a single system. Interpolls’ Rich Media Widgets™ meet, the technical ad specifications and policies of all leading, portals and social networking sites, without relying on other fourth-party widget vendors or partners. Interpolls is quickly being adopted as the platform of choice for publishers and advertisers planning to deploy rich media ad widgets. The Company has launched highly successful rich media widget advertising campaigns for companies such as Ford, Warner Bros,, Unilever, T-Mobile, and the MLB (LA Dodgers). ‘The Company is also a pioneer and leading provider of interactive TV-to-Internet media campaigns, Interpolls has been the back-end voting engine and sweepstakes administrator for television broadcasting and cable companies, such as NBC, Bravo, USA Networks, Lifetime, and AMC. Since 2003, Interpolls has worked on prime-time shows and interactive events for “The Tonight Show with Conan O'Brien”, “Heroes”, “The Office”, “The Apprentice”, “Last ‘Comic Standing”, “Nashville Star”, “The Biggest Loser”, “Project Runway”, the “Miss Teen USA", "Miss USA”, and “Miss Universe” pageants, and much more. Interpolls launched ts international expansion with Microsoft in March 2008, successfully executing campaigns in the UK, France, Germany, Sweden, Finland, Mexico, and Hong Kong, and is planning to launch in Argentina, Brazil, Japan, and Russia by the end of 2009, through its partnership with additional portal partners and clients, ‘The Company is planning to release several RéeD initiatives by the end of 2009 and in 2010, including extensive backend improvements for scalability and cost-efficiency, custom rich, ‘media formats for specific portal and publisher partners, and launching mobile rich media products and applications. Interpolls is currently working with several portal and publisher partners developing innovative mobile rich media formats and certification for all mobile devices due to client demand. An interactive marketing forecast released by Forrester Research projects mobile advertising will increase 70% to $391 million in 2009 and to $1.3 billion by 2014, Interpolls is privately held and headquartered in Los Angeles, California, with a sales office