SOFTWARE & SERVICES

6 OCTOBER 2009

WEB 2.O WEEKLY
TWITTER FINANCING BRING S VALUE TO $1 BILLION
E ARL Y T W IT T E R F UN D E R S ST AY IN G ON T HE SI D EL I N E S T HI S T IM E

DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Damian Wojcichowsky, CFA (Associate), 416.860.7652

The rumour proven true, Twitter raised $100 million in a Series E round of financing, bringing the company’s total funding to date to approximately $159 million. More importantly, the company’s value has concretely increased from $250 million at last funding to $1 billion, established in this latest financing round. Absent from this round of funding were Union Square Ventures and Charles River Ventures – two investors that had participated in earlier Twitter rounds. Both of these venture firms have experienced significant gains in their Twitter investments based on the latest valuation. Charles River specifically cited the high valuation of the latest round as an obstacle to the firm’s participation. Could Twitter’s valuation be reaching unsustainable levels given the company’s state of financial and operational development? W e reprise our Value per Unique Visitor analysis. W hile the increase in value seems extraordinary, when looking at the valuation per unique visitor (UV), the increase is less impressive – from $29 to $42 (+47%). Note that we would of course prefer comparing valuation based on financial metrics such as cash flow or even revenue. However, Twitter has not yet started generating any revenue.

Value per unique vis itor (UV)
1,200,000, 000
S ep 09

T witter, $42 Link edin, $88 1,000,000, 000

800,000, 000 B ebo, $22 (T otal V a lua tion $)

600,000, 000

400,000, 000 C lub P enguin, $29 F eb 09 T witter, $29 Mint.com, $113 S tumbleU pon, $5 F riends R eunited, $2 (200,000, 000) $(50) P eople Media , $20 F riendF eed, $48 P la xo, $200

200,000, 000

P laxo Mint.com L inkedin F riendF eed T witter C lub P enguin T witter B ebo P eople Media S tumbleUpon F riends R eunited

$-

$50

$100 (V a lue per Unique V is itor)

$150

$200

$250
B ubble s ize de note s numbe r of U V S ource : C ompany re ports , C ompe te .com

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 public Web 2.0 companies: Our W eb 2.0 universe contains 90 companies, with a combined market cap of approximately $66 billion (Figure 1). The median market cap for the group is $47 million, with average trailing revenue of $163 million (median $57 million). The companies are also generally profitable, with a median EBITDA margin of 12.5%. On a valuation basis, the overall average is 4.2x trailing revenue (median 1.7x) and 12.4x trailing EBITDA (median 10.2x). Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
C ompany Name
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 etawave C orpora tion B eyond C ommerce, Inc. B right T hings plc B roadW ebAs ia Inc. C DC C orp. C ha ngyou.com Limited C hina G atewa y C orporation C hines e G amer Internationa l C LIC K E R Inc. C ornerW orld C orporation C yberplex Inc. DADA S pA DX N H oldings B hd Dibz Interna tional, 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 Interactive P ictures AG G amania Digital E ntertainment C o. , Ltd. G ameO n C o Ltd. G eoS entric O yj G iant Interactive G roup, Inc. G igaMedia 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 orporation LiveW orld Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Modern T imes G roup Mtg AB MOK 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 NeX plore C orporation Ngi G roup Inc. Northgate T echnologies Limited Open T ext C orp. Openwave S ys tems Inc. P erfect W orld C o. , Ltd. P NI Digital Media Inc. Quepas a C orp. OAO R B C Information S ys tems S ha nda Interactive E ntertainment Ltd. S hutterfly, Inc. S K C ommunications C o. , Ltd. S NAP Intera ctive, Inc. S NM G lobal 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 arent C ompany T he9 Limited T heS treet. com, Inc. T ree. C om, Inc. Unis erve C ommunications C orp. United O nline Inc. UO MO Media, Inc V alueC lick Inc. V O IS , Inc. W ebzen Inc. W izza rd S oftware C orpora tion W orlds . com Inc. W ynds torm C orpora tion XING AG Y edangO nline C orp. Y nk K orea Inc. High Low Average Media n

L TM as of Tic ker
6/30/2009 6/30/2009 6/30/2009 6/30/2007 6/30/2009 6/30/2009 6/30/2009 3/31/2009 9/30/2008 6/30/2009 6/30/2009 9/30/2008 6/30/2009 5/31/2009 7/31/2009 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 6/30/2009 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 4/30/2009 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 6/30/2009 6/30/2009 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 6/30/2009 5/31/2009 6/30/2009 7/31/2009 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 AC L Z A052790 3838 AS MH BSGC B W AV B Y OC AIM:B G T BWBA C HIN. A C Y OU CGW Y G T S M: 3083 C LK Z CWR 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 O 1V GA G IG M GRVY 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 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 NXP C 2497 590057 OTE X OP W V PWR D T S X V :P N QP S A R BCI S NDA S F LY A066270 S TVI S NMN S MV I S CLW S OH U LO V S P XA 700 K IDS . Q NC T Y TSCM TRE E T S X V :U S S U NT D U OMO V CLK V OIS W ZE N W ZE W DDD W Y ND O 1B C A052770 A023770

E xchange
OT CB B K OS E TS E OT CP K OT CB B OT CB B OT CB B AIM OT CP K Nas da qG S Nas da qG S OT CP K GTS M OT CB B OT CB B TS X CM K LS E OT CP K OT CB B OT CB B OT CB B K OS E OT CP K TS X XTR 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 CB B T S XV AS X TS X S E HK T S XV OT CP K Nas da qG M OT CB B TS E OM AS X SWX K OS E S E HK Nas da qG S TS X OT CP K TS E BSE Nas da qG S Nas da qG S Nas da qG S T S XV OT CB B R TS Nas da qG S Nas da qG S K OS E OT CB B OT CP K OT CP K OT CB B Nas da qG S AME X OT CB B S E HK OT CP K Nas da qG S Nas da qG M Nas da qG M T S XV Nas da qG S OT CB B Nas da qG S OT CB B Nas da qG M AME X OT CB B OT CP K XTR A K OS E K OS E

Trading C urrency HQ
US D KRW 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 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 US D C AD 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 apan U nited S tates U nited S tates U nited S tates U nited S tates U nited K ingdom U nited S tates H ong K ong C hina U nited S tates T aiwan U nited S tates U nited S tates C anada Ita ly 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 aiwan J apan F inland C hina T aiwan S outh K orea J apan J apan S outh K orea U nited S tates C anada C anada Aus tralia C anada C hina C anada U nited S tates U nited S tates U nited S tates J apan S weden Aus tralia S witzerland S outh K orea C hina C hina C anada U nited S tates J apan India C anada U nited S tates C hina C anada 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 U nited S tates C anada U nited S tates C anada U nited S tates U nited S tates S outh K orea 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 17, 250 48, 650 0. 01 0. 04 0. 07 0. 24 0. 01 0. 23 2. 50 33. 07 0. 00 484 0. 01 0. 06 1 6. 73 0. 60 0. 00 0. 06 2. 01 0. 37 745 0. 20 1. 52 18. 50 48. 10 86, 000 0. 05 7 4. 80 1. 87 4, 280 216, 500 4, 180 19. 25 0. 06 0. 13 0. 40 0 7 1. 02 0. 08 1. 14 0. 01 563000. 00 287. 00 0. 07 4. 49 38300. 00 5 43. 00 0. 94 1 24100. 00 40. 40 37. 35 2. 50 45. 75 1. 90 2 1. 50 49. 63 15. 70 8780. 00 0 0. 00 0 0. 61 65. 45 2 0 123 0. 01 7. 56 2. 86 7. 69 0. 04 7. 87 0 13 0 2. 71 0. 47 0. 10 0. 10 36. 85 8400. 00 3745. 00

US D Market C ap ($m)
16.8 124. 6 29.6 0. 6 2. 1 2. 0 11.3 5. 9 19.5 264. 9 1, 818. 9 0. 0 1, 255. 2 0. 6 5. 7 74.9 159. 7 39.4 0. 0 4. 5 55.0 19.9 45.2 8. 9 73.3 68.4 225. 2 93.0 65.8 1, 512. 6 261. 7 52.0 2, 142. 8 277. 4 76.7 2, 548. 7 4. 2 5. 9 17.0 0. 6 968. 2 12.1 2. 5 19.5 4. 1 970. 1 2, 716. 1 4. 9 192. 5 676. 6 341. 0 5, 565. 3 98.6 36.3 33.4 29.4 2, 097. 2 208. 7 2, 250. 1 59.8 19.1 208. 1 3, 337. 9 399. 7 308. 1 3. 8 0. 0 0. 0 27.0 2, 509. 0 47.1 9. 7 28,711.6 0. 3 189. 7 87.5 83.1 0. 9 659. 8 10.4 1, 127. 8 3. 3 32.1 23.5 5. 2 1. 8 284. 5 105. 5 16.8 28,711.6 0. 0 740.3 47.1

US D L TM Total R ev ($m)
4. 4 108.7 66. 1 0. 1 0. 1 9. 4 11. 7 0. 0 0. 0 361.6 241.2 6. 7 61. 6 2. 5 6. 8 89. 8 241.9 77. 1 NA 1. 0 NM 0. 6 15. 4 NM 5. 3 9. 6 140.6 81. 9 5. 4 198.5 183.6 49. 1 156.0 119.5 60. 7 1,392. 3 0. 0 1. 6 16. 7 67. 9 139.1 1. 2 10. 6 56. 8 0. 1 136.8 1,971. 4 0. 7 63. 0 207.3 89. 3 472.4 21. 5 0. 7 93. 0 82. 9 785.7 191.7 255.6 21. 0 0. 2 157.4 629.0 218.6 192.7 3. 5 2. 0 0. 1 0. 0 485.1 50. 5 0. 1 1,391. 6 112.0 250.6 67. 0 216.6 17. 1 949.8 0. 8 563.6 0. 0 23. 2 5. 3 0. 1 NA 58. 9 57. 4 11. 9 1, 971. 4 0. 0 163.1 57.4

US D L TM Total E B ITDA ($m)
(3.7) 25. 9 (2.0) (2.3) (1.5) (12. 6) (12. 8) (2.7) (4.6) 25. 1 147.2 (6.6) 34. 7 (1.2) NM 9. 7 31. 8 11. 1 NM (1.4) (2.5) (3.4) (3.6) NM (5.1) (4.5) 25. 1 20. 1 (17. 4) 124.1 NM 16. 6 93. 7 26. 6 1. 4 52. 7 (0.6) (5.0) 7. 2 4. 0 61. 4 (1.9) (0.1) (4.4) (2.5) 46. 2 302.9 (2.4) 3. 4 55. 7 25. 7 297.4 (13. 0) (6.2) 6. 9 (41. 5) 205.1 4. 9 142.2 2. 3 (10. 6) 20. 6 296.7 27. 3 12. 5 0. 9 (0.7) (0.1) (5.6) 209.6 10. 8 (2.5) 680.3 (13. 5) 85. 5 1. 9 (0.7) (0.2) 203.2 (0.4) 99. 0 (1.0) 2. 3 (4.5) (0.7) NM 17. 0 12. 4 1. 3 680. 3 -41. 5 39.1 1. 7

E B ITDA %
-83. 3% 23. 8% -2.9% NM NM NM NM NM NM 6.9% 61. 0% -98. 9% 56. 3% -45. 8% NM 10. 8% 13. 1% 14. 4% NM NM NM NM -23. 6% NM -95. 2% -47. 0% 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 5.4% 26. 8% 28. 7% 63. 0% -60. 3% NM 7.4% -50. 0% 26. 1% 2.6% 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% -0.3% -1.0% 21. 4% -54. 2% 17. 6% NM 9.9% -84. 9% NM NM 28. 8% 21. 6% 10. 5% 63. 0% -98. 9% 6.1% 12. 5%

TE V/L TM R evenue
4.9x 0.8x 0.1x 15. 6x 1.5x 0.7x 6.4x 0.0x 19. 2x 0.3x 2.4x 0.6x 0.9x 0.7x 6.6x 35. 9x 3.1x 12. 6x 7.0x 1.4x 0.2x 12. 1x 1.0x 13. 0x 2.0x 1.0x 0.6x 3.1x 0.6x 6.9x 9.4x 0.1x 6.2x 1.7x 5.7x 3.0x 3.2x 2.2x 4.2x 0.4x 2.7x 0.5x 0.7x 2.8x 0.0x 1.5x 1.6x 0.6x 1.1x 4.5x 4.1x 0.9x 22. 6x 0.2x 0.3x 0.4x 0.2x 1.0x 13. 7x 1.8x 4.6x 3.9x 2.0x 35. 9x 4.2x 1.7x

TE V/L TM E B ITDA
3. 6x 10. 4x 10. 5x 34. 1x 5. 7x 6. 6x 4. 9x 8. 1x 0. 9x 21. 6x 9. 2x 44. 7x 15. 4x 1. 5x 15. 5x 18. 4x 10. 9x 12. 0x 7. 6x 10. 4x 20. 4x 1. 3x 25. 0x 0. 3x 12. 3x 24. 6x 2. 3x 9. 6x 4. 2x 46. 3x 11. 8x 4. 6x 10. 0x 13. 7x 9. 2x 46. 3x 12.4x 10. 2x

E mployees
11 NA NA 3 4 51 101 NA 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, 463 NA NA 90 14 NA 2, 969 NA 405 NA 2, 426 3, 109 237 NA NA NA 3, 411 590 2, 096 NA 74 NA 3, 124 514 NA 11 33 NA NA 3, 197 183 7 6, 421 347 1, 626 310 700 NA 1, 469 NA 1, 189 4 328 110 1 NA 246 NA NA 6, 421 1 922 246

Figure 1. Web 2.0 Universe Summary Source. Capital IQ

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 ) Twitter deal ups the average: Total transaction value in the W eb 2.0 universe for September rose to $232.2 million, up from $196.6 million at this time last week (we included Twitter, which did not make it into last week’s number in the previous edition). This week has brought another eight financings to the sector, bringing the total for September to 30 transactions averaging $9.3 million each. The largest transaction in the week (excluding Twitter, which closed prior to the beginning of the week) was a $16 million financing of Livebookings, provider of restaurant reservation applications. The biggest deal in the month was Skype at $2.2 billion, followed by the acquisition of InXpo at $170 million, and the Twitter venture raise at $100 million. In comparison, total capital raised in August was $208.5 million, averaging $7.7 million (27 deals); for July (35 deals) $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 16.2 350.0 14.6 14.0 300.0 16.0 18.0

12.0 250.0 9.7 (US$m) 9.3 200.0 7.9 7.0 150.0 7.0 6.5 7.1 6.6 6.2 5.5 4.9 100.0 4.0 6.0 8.0 10.0 (US$m) 2.0 0.0 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Total Apr-09 Average May-09 Jun-09 Jul-09 Aug-09 Sep-09

50.0

0.0

*May-09 includes $200m FB investment

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

(US$m)

• • • • •

100.0

120.0

140.0

160.0

180.0

200.0

20.0

40.0

60.0

80.0

0.0

Deal round-up for September: The large deal highlights for the month include:

All other deals in the month involved less than $20 million in funding. For additional details on financings, see Figures 23 and 24 (at end of note).

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

Mint – a free online personal finance service – was acquired for $170 million by Intuit.

Ensequence – interactive TV solution provider – raised $20 million in a Series D financing.

Now Public – a crowdsourcing news network – was acquired by Examiner.com for $25 million.

Financing & M/A Summary - Last Three Months

Twitter – the leading 140-character communication tool – raised $100 million through a Series E financing.

Skype Mint Twitter People Media Super Rewards Turbine Friends Reunited AdLink Internet Media Pandora Media Smith & Tinker NowPublic Ensequence xoopit iLike MediaMath Livebookings Kontera Ltd. Dopplr Ning Zoove RichRelevance QuickPlay Media Traffiq Causes Mzinga InXpo Edo Interactive Bill.com Outspark Jobvite ConnectEdu NextBio Riot Games Acquia, Inc SBNation InnoCentive OneRiot Balihoo Metaversum iMemories Vuclip Invodo Imeem HiveLive Boxee Polyvore Booyah Fanbase MOG Jambool YuMe Quikr India Pvt. Ltd. NeoEdge OPEN Sports network Nexage StyleCaster Alliance Health Networks TweetDeck Unisfair KODA Mocapay Conduit Labs OurStage Z2Live Scoreloop Fwix Vantrix Busca ProtonMedia Akademos MashLogic Roblox Greystripe Tremor Media iSocket iLoop Mobile Comunitae Loomia Lat49 Aloqa RightsFlow Plista FourSquare EduFire Tiny Pictures ChessCube Thread Tributes.com CoTweet Cognitive Match Limited Cellufun Clikthrough Linksify TransGaming Inc. BookFresh People Capital iSyndica Masher Media OnLive Gigpark Gamelab.com Jul-09 Aug-09 Sep-09

Page 4

Skype – a VoIP-based communications suite provider – was acquired for $2.025 billion by a consortium of private equity firms.

Page 5

Advertising remains the most active sector: Social Networks companies saw the most activity in the month by number of transactions (12), followed by Advertising (11), and Gaming (9) (Figure 4). The $2.0 billion acquisition of Skype skews the dollars transacted to the SMS/Voice segment, while the $170 million acquisition of Mint brings the Vertical Communities segment to the second highest total.
Capital Market Activity by Sector - Last Three Months
200.0 180.0 160.0 140.0 120.0 (US$m) 100.0 80.0 60.0 40.0 20.0 2,025.0 197.5 113.3 104.1 103.2 0.0 Vertical Communities Gaming Online Dating Enterprise Mobile Microblog Music Infrastructure SMS/Voice Search Social Networks Crowdsourced Content Advertising Virtual World Video 99.0 82.0 80.0 70.5 40.0 38.2 37.3 7.0 29.3 26.0 14.0 Comment/Reputation 13.2 Advertising/Mobile 12.0 Online Learning 8.6 Media 8.0 Collaboration 8.0 Blog 5.0 Virtual Goods 4.1 Classified 4.0 Mobile Ad 2.8 Aggregation 1.0 Analytics 0.5 Online Calendar 1 0.5 Online Lending 1

# companies
1 5

12

11

2

9

7

1

6

5

5

3

2

7

4

2

1

3

2

1

1

1

1

2

1

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
160

140

120

100

80

60

40

20

0 9/22/2008 1/12/2009 1/26/2009 2/23/2009 3/23/2009 4/20/2009 5/18/2009 6/15/2009 6/29/2009 7/13/2009 7/27/2009 8/10/2009 10/20/2008 11/17/2008 12/15/2008 12/29/2008 8/24/2009 10/6/2008 11/3/2008 12/1/2008 2/9/2009 3/9/2009 4/6/2009 5/4/2009 6/1/2009

Index: Web 2.0 (Market Cap)
Figure 5. Web 2.0 Price Performance Source. Capital IQ

^COMP - Share Pricing

Page 7

Broad-based price improvement: Fourteen companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 36 companies showed negative 1-week returns. Volatile price swings continue for DigitalTown (OTCBB:DGTW ), falling 24% this week after rising 76% the prior week and falling 14% the week before that.

Fluid Mus ic Canada, Inc. OA O R B C Inf ormation S y s tems Lingo Media Corporation Chines e G amer International Tree.Com, Inc. S handa Interactive Frogs ter Interac tive Pictures A G Perf ect World Co., Ltd. Eolith Co. Ltd. G ama nia Digital Entertainment A Q Interac tive, Inc. Tencent Holdings Ltd. V alueClick Inc. PNI Digital Media Inc. Y nk K orea Inc. My riad G roup A G S K Communications Co., Ltd. Ngi G roup Inc. Open Tex t Corp. NetDragon WebS oft, Inc. LookS mart, Ltd. TheS treet. com, Inc. S park Netw orks , Inc. DA DA S pA Gravity Co., Ltd Neteas e.c om Inc. S ohu.com Inc. K ings of t Co. Ltd. Cy berplex Inc. The9 Limited Openw ave S y s tems Inc. Mix i, Inc. CDC Corp. Y edangOnline Corp. HanbitS oft, Inc. G ameOn Co Ltd. Northgate Technologies Limited Modern Times G roup Mtg A B IA C/InterA ctiveCorp. S hutterf ly , Inc. Webz en Inc. G igaMedia Ltd. A c toz S oft Co., Ltd. NEOWIZ G ames Corporation Quepas a Corp. Changy ou.com Limited G ree, Inc. G iant Interactive G roup, Inc. DigitalTow n, Inc. -0.3
Figure 6. 1-Week Price Performance Source. Capital IQ

1 Week P rice P erformance
7.1% 13.3%

31.0% 29.3%

-23.9% -0.2

-0.1% -0.2% -0.2% -0.4% -0.5% -0.6% -0.9% -1.0% -1.7% -2.0% -2.1% -2.5% -2.6% -2.7% -3.1% -3.2% -3.8% -4.4% -4.9% -5.1% -5.2% -6.5% -6.6% -7.0% -7.8% -8.9% -9.1% -10.1% -10.2% -11.1% -12.3% -12.4% -12.7% -13.7% -0.1 0

4.3% 2.9% 2.7% 2.1% 0.7% 0.2% 0.2% 0.2% 0.1% 0.0%

0.1

0.2

0.3

0.4

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
C hangyou.com L imited (Nas daqG S :C YOU) is eemedia Inc. (TS XV: IE E ); R eal B iz LLC

Headline
C ertain American Depos ita ry s hares of C hangyou. com L imited are s ubject to a Lock-Up A greement E nding on 28-S E P -2009. Is eemedia S eeks S tra tegic P artner F or R ealB iz360

Notes
C ertain American Depos itary S hares of C hangyou. com Limited are s ubject to a Lock-Up Agreement E nding on 28-S E P -2009. T hes e s hares will be under lockup for 180 days s tarting from 01-AP R -2009 to 28-S E P -2009. Is eemedia Inc. recently provided a bus ines s upda te on its R eal B iz LLC s ubs idiary as it reviews s trategic alternatives for the unit. "T he wors e the real es tate s ector gets the more a ttra ctive our s olutions become to all participants in the rea l es tate indus try, from s ellers a nd buyers , to bankers and la wyers , " s aid Anthony DeC ris tofa ro, pres ident and chief executive officer, is eemedia. He added: "R ealB iz360 has reached a critical inflection point with an annual revenue run rate of $2. 6-million with profits and the time is ripe for us to s eek a s trategic partner to fuel its growth more ra pidly at a time when the real es tate indus try, the world over, is s eeking innovative s olutions to expedite s ales . " T he9 Limited a nnounced tha t the Audit C ommittee of its B oard of Directors ha s engaged the s ervices of Deloitte T ouche T ohmats u C P A L td. a s the compa ny's independent regis tered public accounting firm for the fis cal yea r ending December 31, 2009. DT T C replaces the company's previous independent regis tered a ccountant, P ricewa terhous eC oopers Zhong T ian C P As Limited C ompany, effective immedia tely. P erfect W orld C o. Ltd. a nnounced tha t it will launch the open beta tes ting for its firs t 2D turn-bas ed MMO R P G 'F antas y Zhu Xian' on O ctober 22, 2009. 'F anta s y Zhu Xian' is ba s ed on a popular internet fantas y novel 'Zhu Xian, ' and runs on the C ompany's proprietary E P AR C H 2D engine, bringing entirely new gaming experiences to players . In this open beta tes ting vers ion, 'F antas y Zhu Xian' conta ins many innovative features and lots of new content, including an innovative flying s ys tem tha t introduces the concept of a ltitude into a 2D ga me, a built-in P P C hat friend making s ys tem, player vs . player turn-ba s ed battlefields and s uch s ys tems as light effect of weaponry, s uper pets , adva nced equipment and production a nd the NP C voice s ys tem. All thes e features cater to players ' preferences .

The9 L imited (Nas daqGS :NC TY)

T he9 Limited S elects Deloitte T ouche T ohmats u as its Independent R egis tered P ublic A ccounting F irm R eplacing P ricewaterhous eC oopers Zhong T ian C P As L imited C ompany P erfect W orld to La unch Open B eta T es ting for 'F antas y Zhu Xia n'

P erfec t World C o., L td. (Nas daqG S :P W R D)

DigitalP os t Interactive, Inc . (OTC B B :DG L P )

DigitalP os t Interactive Inc. E nters into 2-Y ear Agreement O n S eptember 23, 2009, Digita lP os t Intera ctive Inc. entered into a 2-year agreement with Lucidiom Inc. Under the terms , DigitalP os t agrees with Lucidiom, Inc to provide, hos t, a nd maintain a new digital fa mily media-s haring s ervice bas ed on its T heF amilyP os t. com s ervice which Lucidiom agrees to launch through its kios ks located a t retail s tores worldwide. T he new online s ervice will enable Lucidioms cus tomers to enjoy their own, pers onalized family webs ite tha t can be us ed to s hare a lifetime of photos , profes s ional portraits , videos , s tories , family tree and more. DigitalP os t a grees to pay Lucidiom 50% of the ongoing monthly net fees received by Digita lP os t for active, pa ying cus tomer s ubs criptions during the term of the agreement. F urther, Lucidiom a grees to make the family webs ite platform acces s ible through its P hotoF inale webs ite, which its cus tomers can log in to create a nd manage their family webs ite. P erfect W orld C o. Ltd. Launches New E xpans ion P ack 'Zhu Xia n 2. 0 S pecial E dition' P erfect W orld C o. Ltd. a nnounced tha t it la unched a new expa ns ion pack 'Zhu Xian 2. 0 S pecia l E dition' for its popular 3D MMO R P G 'Zhu Xian' on S eptember 22, 2009. Zhu Xian is a 3D MMO R P G ada pted from a popular internet fantas y novel of the s ame name. T he game has been well received in both domes tic and overs eas markets s ince its launch in 2007, a nd is one of the C ompany's mos t s ucces s ful cla s s ic titles . In the new expans ion pa ck, numerous new features were added to the ga me, including a P layer Driven S toryline S ys tem in which the players can change the s torylines of the game as recorded in the s erver with their deeds , a new ra ce-Demigod, the Aerial C omba t S ys tem, the T ra ns forma tion S ys tem and s o on. All thes e new features are aimed at catering to players ' va rious preferences .

P erfec t World C o., L td. (Nas daqG S :P W R D)

G et Tic kets E -S olutions , Inc.; UOMO Media, Inc (OTC B B :UOMO)

U OMO Media , Inc (O T C B B : UO MO) a cquired 15% s take UO MO Media, Inc (OT C B B : UO MO) acquired 15% s take in G et T ickets E -S olutions , Inc. on S eptember 29, 2009. UO MO Media has an in G et T ickets E -S olutions , Inc. opportunity to acquire more, under certa in performance mechanis ms .

UO MO Media, Inc (OT C B B : UO MO) completed the acquis ition of 15% s take in G et T ickets E -S olutions , Inc. on S eptember 29, 2009. MOK O.mobi L imited (AS X: MK B ) MO K O . mobi Limited, Annua l G enera l Meeting, S ep 30, 2009 MO K O . mobi L imited, Annual G eneral Meeting, S ep 30, 2009, a t 14: 00 AUS E as tern S tandard T ime. L oca tion: P K F , Level 10, Marga ret S treet, S ydney,A us tra lia . Agenda: T o receive and cons ider the income s tatements , ba lance s heets and cas h flow s tatements of the company a nd its controlled entities , the s tatement by the directors a nd the reports of the directors and auditors for the year ended 30 J une 2009; to cons ider election of directors ; to cons ider the company's remuneration report for the yea r ended 30 J une 2009; to cons ider the is s ue of Director Options ; to cons ider a pproval of is s ue of S taff O ptions ; to cons ider ratifica tion of prior is s ue of O ptions to T im G epp; to cons ider ratification of prior is s ues of S ecurities ; and to cons ider the approval of placement of S hares .

Northgate Technologies L imited (B S E : 590057) Open Text C orp. (Nas daqG S : OTE X)

Northga te T echnologies Limited, Annual G eneral Northgate T echnologies Limited, A nnual G eneral Meeting, S ep 30, 2009 Meeting, S ep 30, 2009 O pen T ext C orp. E nters Amended C redit A greement with O n S eptember 24, 2009, O pen T ext C orp. a nd certain of its s ubs idiaries entered into a n amended credit agreement with R oya l B a nk of R oyal B ank of C anada C a nada to amend a credit a greement, origina lly s igned on October 2, 2006. Agreement to C redit Agreement is (1) S ection 1. 01 of the credit a greement is hereby amended by ins erting the following defined terms in their proper alphabetica l order: 'S econd Amendment' mea ns tha t S econd Amendment to this Agreement, da ted as of S eptember 24, 2009, among the B orrower, the Adminis trative A gent a nd the Lenders lis ted on the s igna ture pa ges thereto. 'S econd A mendment E ffective Da te' has the mea ning s et forth in the S econd Amendment. (2) C laus e (e) of the definition of 'P ermitted Acquis itions ' in S ection 1. 01 of the C redit Agreement is hereby amended by removing the period a t the end thereof and adding the following provis o: 'provided tha t, the foregoing limitations in claus es (A ) and (B ) s hall not apply to the extent tha t (x) the C ons olida ted Leverage R atio does not exceed 2. 50: 1. 00 a s at the end of the mos t recently-ended Meas urement P eriod, as determined on a pro forma bas is a fter giving effect to s uch P ermitted Acquis ition and (y) the s um of cons olida ted unres tricted cas h on the balance s heet o B igs tring C orp. 's P atent-P ending T echnology R eceives Notice of A llowa nce from U . S . P atent and T ra demark O ffice G iant Intera ctive G roup Inc. P rovides R evenue G uidance for the T hird Quarter of 2009 A merican Hockey L eague and NeuLion Incorporated L aunch S econd S eas on of AH L Live to Deliver Unique O nline E xperience to AHL F ans B igs tring C orp. announced that its patent application for univers a l, recallable, eras able, s ecure a nd timed delivery ema il--ha s received a Notice of Allowance from the U. S . P a tent and T radema rk Office. G ia nt Intera ctive G roup Inc. provided revenue guidance for the third quarter of 2009. T he company expects third quarter 2009 revenue to be between R MB 272. 0 million a nd R MB 291. 0 million. NeuLion Incorpora ted a nnounced to-da y coverage of the A HL 2009-10 s ea s on to deliver live games and an online video des tination s ite to its worldwide fan bas e. T his s ea s on marks the s econd full year of a long-term partners hip with the A merica n Hockey League to deliver A HL L ive. Not a va ilable anywhere els e on the Internet, AHL L ive offers hockey fans an opportunity to tune into their favorite team with a s imple Internet connection. T his s ubs cription-bas ed s ervice gives fans an a ll-a cces s pas s to wa tch live ga mes for the entire s eas on or on a pay-perview bas is . Us ing NeuL ion technology, AHL Live will capture each of the league's 29 clubs and s trea m 1, 160 games throughout the AHL regula r s eas on, which begins O ctober 2. T his exclus ive s ervice is the only wa y fa ns can watch live games online, where the viewing experience expa nds the rea ch of the AHL to a globa l audience. XING AG ha s recruited Dr. Helmut B ecker as chief commercia l officer. He was s enior director of advertis ing and emarketing at E ba y Deuts chland a nd MD of E bay Advertis ing. R a iffeis enbank filed s uit on T hurs day in Mos cow arbitration court s eeking a ba nkruptcy decla ra tion agains t O A O R B C Information S ys tems . It was reported earlier that R a iffeis enbank filed s uit a gains t R B C back in April to s ecure payment of a debt totaling R UB 108 million. R a iffeis enbank plans to withdra w its bankruptcy declaration a gains t R B C Information S ys tems in the near future. G ia nt Intera ctive G roup, Inc. , Q 3 2009 G uidance/Update C all, Oct-01 2009 O pen T ext C orp. a nnounced the lates t releas e of O pen T ext E nterpris e C onnect, the revolutiona ry us er experience for the O pen T ext E C M S uite. T he new vers ion furthers E nterpris e C onnect a s a powerful content s ervice tha t ma kes it ea s y to blend content and proces s es within us ers ' preferred working environments . In any enterpris e s oftware rollout-from des ktop a pplications to complex bus ines s applications -us er a doption repres ents a ma jor hurdle. F or example, a s tudy by S and Hill G roup and Neochange found tha t 70% of buyers and providers believe tha t 'effective us er adoption' is the primary driver to realize the full bus ines s va lue of enterpris e s oftware s olutions . E nterpris e C onnect eliminates barriers and accelera tes delivery of content applications by allowing us ers to acces s and interact with bus ines s content directly from familiar des ktop applications , s uch as Micros oft Office, Micros oft O utlook and W indows E xplorer. E nterpris e C onnect is one of a s et of O pen T ext C ontent S ervices that are the foundation of the O pen T ext E C M S uite's s ervices -oriented architecture. T he new releas e of E nterpris e C onnect, vers ion 1. 5, further s implifies the us er experience. U s ers can ta ke a dvantage of s uch functiona lity as drag a nd drop from B right T hings plc announced a t its A G M to be held on October 29, 2009, a res olution will be propos ed to amend the a rticles of as s ociation of the C ompa ny to reflect recent changes in company legis la tion in the UK .

B igs tring C orp. (OTC B B :B S GC )

G iant Interac tive G roup, Inc. (NYS E :G A) NeuLion Incorporated (TS X:NLN)

XING AG (XTR A: O1B C ) OAO R B C Information S ys tems (R TS :R B C I)

X ING A G A ppoints Helmut B ecker as C hief C ommercial O fficer R aiffeis enba nk F iles B ankruptcy S uit A gains t R bc Information S ys tems

G iant Interac tive G roup, Inc. (NYS E :G A) Open Text C orp. (Nas daqG S : OTE X)

G iant Intera ctive G roup, Inc. , Q 3 2009 G uidance/U pdate C all, Oct-01-2009 O pen T ext C orp. R eleas es New V ers ion of E nterpris e C onnect

B right Things plc (AIM:B GT)

B right T hings plc P ropos es Amendment to its A rticles of A s s ociation

Figure 7. Key Developments Source. Capital IQ

Page 9

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), down from 15 last week. Fifty-seven of the 90 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)
Tenc ent Holdings L td. Neteas e.c om Inc. S handa Interac tive Entertainment L td. Modern Times G roup Mtg A B IA C/InterA c tiveCorp. S ohu.c om Inc. Perf ec t World Co. , L td. G ree, Inc. Open Tex t Corp. Changy ou.c om Limited G iant Interac tive G roup, Inc. Chines e G amer International V alueClic k Inc. Mix i, Inc. K ings of t Co. Ltd. NEOWIZ G ames Corporation United Online Inc. S hutterfly , Inc. NetDragon WebS of t, Inc. S K Communic ations Co. , L td. XING A G GungHo Online Entertainment, Inc. CDC Corp. G igaMedia L td. G amania Digital Entertainment Co. , Ltd. Openw ave S y s tems Inc. OA O R B C Inf ormation S ys tems Myriad G roup A G The9 Limited DA DA S pA A ctoz S of t Co. , Ltd. Y edangOnline Corp. NeuL ion Inc orporated G ameOn Co L td. TheS treet.c om, Inc. Tree. Com, Inc. HanbitS of t, Inc. Cy berplex Inc. Fluid Mus ic Canada, Inc. Frogs ter Interac tive Pic tures A G G eoS entric Oy j PNI Digital Media Inc. DigitalTow n, Inc. G ravity Co., L td S park Netw orks , Inc. Eolith Co. L td. DXN Holdings B hd NeX plore Corporation Ngi Group Inc. Webz en Inc. A Q Interactive, Inc. Northgate Tec hnologies Limited S ocialw is e, Inc. Wiz z ard S of tw are Corporation Dolphin Digital Media, Inc. B roadWebA s ia Inc. L ookS mart, L td. Quepas a Corp. J umbuck Entertainment Limited A cc eleriz e New Media, Inc. Y nk K orea Inc. L ingo Media Corporation B ey ond Commerce, Inc. UOMO Media, Inc S pectrumDNA , Inc. Ex tens ions , Inc. B right Things plc is eemedia Inc. CornerWorld Corporation Worlds .c om Inc. MOK O.mobi Limited DigitalPos t Interactive, Inc. IA S Energy , Inc. Magnitude Inf ormation S y s tems Inc. S NA P Interactive, Inc. V OIS , Inc. L iveWorld Inc. B igs tring Corp. B etaw ave Corporation Wy nds torm Corporation Unis erve Communic ations Corp. K A B Dis tribution Inc. A s s ociated Media Holdings Inc. CL ICK ER Inc. The Parent Company China G atew ay Corporation S NM Global Holdings Dibz International, Inc. S ocial Media V enures , Inc. 0
Figure 8. Market Cap Ranking Source. Capital IQ

28,711. 6 5,565.3 3,337.9 2,716.1 2,548.7 2,509.0 2,250.1 2,142.8 2,097.2 1,818.9 1,512.6 1,255.2 1,127.8 970. 1 968. 2 676. 6 659. 8 399. 7 341. 0 308. 1 284. 5 277. 4 264. 9 261. 7 225. 2 208. 7 208. 1 192. 5 189. 7 159. 7 124. 6 105. 5 98.6 93.0 87.5 83.1 76.7 74.9 73.3 68.4 65.8 59.8 55.0 52.0 47.1 45.2 39.4 36.3 33.4 32.1 29.6 29.4 27.0 23.5 19.9 19.5 19.5 19.1 17.0 16.8 16.8 12.1 11.3 10.4 9.7 8.9 5.9 5.9 5.7 5.2 4.9 4.5 4.2 4.1 3.8 3.3 2.5 2.1 2.0 1.8 0.9 0.6 0.6 0.6 0.3 0.0 0.0 0.0 0.0 500 1,000 1,500 2, 000 2, 500 3,000 3,500 4,000

Page 10

TEV/Revenue (LTM) averages 4.2x: The overall average TEV/Revenue (LTM) multiple for our group is 4.2x (vs. 5.4x last week) (Figure 9). W ith broad-based decline in the sector over the week, only one company now trades over 25x revenue – Dolphin Digital Media, Inc. (OTCBB:DPDM) at 35.9x. The median of 1.7x is down from 2.1x last week. Note that we exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x.

T E V/L T M R evenue (x)
40. 0
35.9

35. 0 30. 0 25. 0 20. 0
15.6 22.6 19.2

15. 0 10. 0 A vera ge, 4.2 5. 0 0. 0
3.0 3.1 3.1 3.2 2.2 2.4 2.7 2.8 1.5 1.6 1.7 1.8 2.0 2.0 0.7 0.8 0.9 0.9 1.0 1.0 1.0 1.1 1.3 1.4 1.5 0.0 0.1 0.1 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.5 0.6 0.6 0.6 0.6 0.7 0.7 4.9 3.9 4.1 4.2 4.5 4.6 9.4 6.4 6.6 6.9 7.0 5.7 6.2

13.0 13.7 12.112.6

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 (18), trading at an average multiple of 8.2x (vs. 10.1x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 4.3x revenue (vs. 7.4x last week) (Figure 11). Ten of the companies are Canadian (average 4.6x revenue).
Average TEV/LTM Revenue - By Exchange
14.0 12.0 10.0 (x) 8.0 6.0 4.0 2.0 OTCBB GTSM 0.0 SEHK HLSE TSE TSX XTRA 10.6 10.3
(x)

TSXV OTCPK

NasdaqGM

CM

OSE

KOSE

NasdaqGS OM

RTS

BSE

AIM

AMEX

NYSE

KLSE

SWX

ASX

# Companies

1

3 2 18 4 2 5 4 11 2

1 2 1 6 14 1 1 1 5

1 1 1 1
# Companies 1 3 10 2 10 6 38 2

Switzerland

1

8

1

1

1

1

1

1

1

88

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

Grand Total

Germany

Hong Kong

Malaysia

China

India

Finland

Canada

United

Australia

Taiwan

Sweden

Russia

United

Japan

South

Italy

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

Average TEV/LTM Revenue - By Country
14.0 12.0 10.0 8.0 6.0 4.0 7.2 12.1

12.1

8.2 5.8 5.5 4.9 3.9 3.63.1 3.0 2.7 2.0

7.2 5.5 4.6 4.3 4.3 3.1

2.0 1.9 1.7 0.9 0.7

0.4 0.4

3.0 2.0 1.7 0.9 0.7 0.7 0.4 0.0 0.0 0.0

0.0 0.00.0

2.0 0.0

Page 11

TEV/EBITDA (LTM) averages 13.6x: The average multiple for the 36 companies with positive EBITDA (and multiples under 100x) is 12.8x LTM EBITDA (vs. 13.6x last week), led by Tencent Holdings (SEHK-700) 46.3x multiple (Figure 12). Ten companies have EBITDA multiples under 7x. The median multiple is 10.4x (vs. 10.7x last week).
T E V/L T M E B IT DA (x)
50. 0 44. 7 45. 0 40. 0 35. 0 30. 0 24. 6 25. 0 25. 0 20. 0 15. 0 10. 0 5. 0 0. 0 G ameO n C o L td. P erfec t World C o. , L td. 0. 9 1. 3 1. 5 2. 3 J umbuck E ntertainment L imited S NAP Interac tive, Inc . 3. 6 4. 2 4. 6 4. 9 A verage, 12.8 5. 7 6. 6 7. 6 8. 1 9. 2 9. 2 13. 7 12. 3 12. 6 10. 9 11. 8 12. 0 9. 6 10. 0 10. 4 10. 4 10. 5 18. 4 15. 4 15. 5 20. 4 21. 6 34. 1 46. 3

NE O WIZ G ames C orporation

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

P NI Digital Media Inc .

Modern T imes G roup Mtg AB

S K C ommunic ations C o. , Ltd.

C hines e G amer International

C hangy ou. c om L imited

DXN Holdings B hd

C DC C orp.

T heS treet. c om, Inc .

U nited O nline Inc .

O pen T ex t C orp.

NetDragon WebS oft, Inc.

O penwave S y s tems Inc.

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 (18), trading at an average multiple of 2.3x. On a geographic basis, the United States has the most companies (38), trading at an average of 10.1x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.7x EBITDA).
Average TEV/LTM EBITDA - By Exchange
30.0 25.0 25.0 20.0 (x) 15.0 10.0 5.0 GTSM NasdaqGM 0.0 SEHK TSXV KOSE NasdaqGS OSE TSE OM CM XTRA 23.1 21.1 18.8 13.713.6 11.8 10.9

Average TEV/LTM EBITDA - By Country
25.0 21.1 20.0 18.8 15.0 (x) 15.1 13.7 13.7 12.5

10.5 9.2

6.6

10.0
5.7 4.9 4.2 2.3 OTCBB KLSE AMEX TSX 1.5 0.3 RTS ASX

10.9 10.4 10.1 6.6 4.9 1.5 0.3 Russia 0.0 Switzerland 1

5.0 0.0 Germany Hong Kong Canada

Malaysia

China

Japan

United States

Taiwan

South Korea

Italy

# Companies

4

3

2

6

2

5

5

1

14

1

1

4

1

2

18

2

1

# Companies

3

8

10

10

2

6

1

1

38

1

1

Australia

Sweden

2

1

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

T enc ent Holdings L td.

S park Network s , Inc .

IAC /InterAc tiveC orp.

Mix i, Inc .

S ohu. c om Inc .

V alueC lic k Inc .

C yberplex Inc.

Y edangO nline C orp.

G ree, Inc .

XING AG

Actoz S oft C o. , L td.

K ings oft C o. L td.

H anbitS oft, Inc.

Y nk K orea Inc.

S hutterfly , Inc.

DADA S pA

Page 12

P/E (LTM) averages 18.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 18.0x LTM EPS (vs. 19.2x last week), led by GungHo Online Entertainment’s (OSE:3765) 60.0x multiple (Figure 15). Ten companies have P/E multiples under 10x. The median is 12.9x.

P /E L T M (x)
70.0 60.0 47.1 58.6 60.0

50.0 40.0 30.0 20.0 A verage, 18.0 14.8 12.9 13.1 13.7 13.9 11.2 12.1 12.5 9.3 10.3 17.7 19.3 19.4 20.0 29.2

44.6 45.4 34.9 35.2

10.0 2.2 0.0 T he9 Limited S handa Interactive E ntertainment Ltd. Neteas e.com Inc. P erfect World C o., Ltd. 2.4 3.1 3.2

4.9

6.6

6.7

6.7

J umbuck E ntertainment Limited

NE O W IZ G ames C orporation

G amania Digital E ntertainment C o., Ltd.

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 (18), trading at an average multiple of 13.3x. On a geographic basis, the United States has the most companies (38), trading at an average of 12.9x earnings (Figure 17). Ten of the companies are Canadian (average 20.8x EPS).
Average P/E - By Exchange
70.0 60.0 50.0 (x) 40.0 30.0 20.0 10.0 OTCBB GTSM 0.0 OSE TSE KOSE SEHK XTRA
(x)

60.0

45.0 40.0 35.0 30.0

Average P/E - By Country
40.4

33.9 32.0 30.6

29.2 19.4 13.3 13.1 12.9 10.6 6.7 NasdaqGS OM

25.0 20.0 15.0 10.0

29.2

24.8

20.8 13.2 13.1 13.0 12.9 6.6 4.9 0.0 0.0

6.6 KLSE

4.9 ASX

1.8 NasdaqGM 0.0 NYSE

5.0 0.0 Germany Japan China United States Canada Malaysia Taiwan South Korea Sweden

AMEX

TSX

# Companies

1

5

2

3

2

6

18

1

2

14

4

1

2

1

5
# Companies 6 2 3 10 10 1 8 38 1 2

Switzerland

1

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

Hong Kong 1

Australia

G ungH o O nline E ntertainment, Inc.

Modern T imes G roup Mtg AB

C hines e G amer International

DXN H oldings B hd

C hangy ou.com Limited

S NAP Interactive, Inc.

G ameO n C o Ltd.

O pen T ex t C orp.

NetDragon W ebS oft, Inc.

T encent H oldings Ltd.

C y berplex Inc.

G igaMedia Ltd.

S park Network s , Inc.

IAC /InterActiveC orp.

S ohu.com Inc.

Worlds .com Inc.

Y edangO nline C orp.

H anbitS oft, Inc.

Actoz S oft C o., Ltd.

K ings oft C o. Ltd.

G ree, Inc.

XING AG

Mix i, Inc.

Page 13

UPCOMING EVENTS

E arnings C alendar
C ompany
S hutterfly, Inc. (Nas daqG S : S F L Y ) T ree. C om, Inc. (Nas daqG M: T R E E )
Figure 18. Earnings Calendar Source. Company reports

Date & Time
W ednes day, O ctober 28, 2009 2: 00 P M (P T ) F riday, O ctober 30, 2009 11: 00 AM (E T )

Quarter
Q 3 2009 Q 3 2009

C onf C all Details
719-325-4880 888-428-9470

Page 14

C omparable C ompany Analys is > Web 2.0
Pric e P erformanc e
C ompany Name 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 Limited 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 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 ynds torm C orpora tion XING A G Y eda ngOnline C orp. Y nk K orea Inc. H igh L ow Average Media n C urrenc y 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 US D C AD US D US D US D US D US D US D US D US D E UR KR W KR W Tic ker 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 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 Y ND O1B C A052770 A023770 E xc hange 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 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 P K XT R A K OS E K OS E US D Market C ap ($m) 16.8 124.6 29.6 0.6 2.1 2.0 11.3 5.9 19.5 264.9 1, 818.9 0.0 1, 255.2 0.6 5.7 74.9 159.7 39.4 0.0 4.5 55.0 19.9 45.2 8.9 73.3 68.4 225.2 93.0 65.8 1, 512.6 261.7 52.0 2, 142.8 277.4 76.7 2, 548.7 4.2 5.9 17.0 0.6 968.2 12.1 2.5 19.5 4.1 970.1 2, 716.1 4.9 192.5 676.6 341.0 5, 565.3 98.6 36.3 33.4 29.4 2, 097.2 208.7 2, 250.1 59.8 19.1 208.1 3, 337.9 399.7 308.1 3.8 0.0 0.0 27.0 2, 509.0 47.1 9.7 28,711. 6 0.3 189.7 87.5 83.1 0.9 659.8 10.4 1, 127.8 3.3 32.1 23.5 5.2 1.8 284.5 105.5 16.8 C urrent P ric e 0.60 17, 250 48, 650 0.01 0.04 0.07 0.24 0.01 0.23 2.50 33.07 0.00 484.00 0.01 0.06 1.25 6.73 0.60 0.00 0.06 2.01 0.37 745.00 0.20 1.52 18.50 48.10 86, 000 0.05 6.68 4.80 1.87 4, 280 216, 500 4, 180 19.25 0.06 0.13 0.40 0.01 6.88 1.02 0.08 1.14 0.01 563,000.00 287.00 0.07 4.49 38,300.00 5.00 43.00 0.94 0.65 24,100.00 40.40 37.35 2.50 45.75 1.90 1.50 1.50 49.63 15.70 8,780.00 0.35 0.00 0.10 0.61 65.45 2.29 0.20 123 0.01 7.56 2.86 7.69 0.04 7.87 0.12 12.94 0.00 2.71 0.47 0.10 0.10 36.85 8,400.00 3,745.00 1 Wk 15.4% -10.2% 0. 2% -30.0% 9. 1% -22.2% 96.5% 0. 0% -22.8% -4.9% -12.4% -86.7% 7. 1% -24.7% 0. 0% -3.1% -2.0% 0. 8% 20.0% -7.9% -23.9% -21.1% 0. 7% -16.7% 31.0% 2. 7% 0. 2% -6.5% 0. 0% -13.7% -10.1% -2.1% -12.7% -9.0% -5.2% -7.8% -14.4% -3.8% 2. 6% -50.0% -2.7% 13.3% 60.0% -0.9% -25.0% -4.4% -7.0% -14.5% -0.2% -11.1% -0.6% -2.5% -4.1% 18.2% -0.4% -6.6% -0.5% -3.8% 2. 1% 0. 0% -12.3% 29.3% 2. 9% -8.9% -0.2% -30.0% 0. 0% 0. 0% 1. 7% -2.6% -1.7% 53.8% 0. 2% -19.3% -3.2% -1.0% 4. 3% 0. 0% -3.6% -4.8% 0. 1% -11.1% -9.1% -8.8% -16.7% 0. 0% 9. 4% -5.1% -0.1% 96.5% -86.7% -3.0% -2.6% 1 Mth 5.3% -0.9% -1.9% -30.0% 63.6% 0.0% 16.0% 0.0% -22.8% 5.0% -15.3% -86.7% 7.0% -6.7% 9.1% 3.3% 6.6% 10.1% NM 5.5% 14.9% -15.7% -21.6% 0.0% 19.7% -2.7% -5.5% -15.7% 0.0% -12.7% 0.2% 3.9% 3.6% -15.7% 7.0% 2.5% -55.6% 150.0% 0.0% -99.2% -22.6% 2.0% 60.0% -2.6% 38.5% -1.2% -3.2% -13.3% 0.0% 4.5% -13.6% 1.1% -14.5% 18.2% -19.6% -11.1% 7.5% -10.7% 14.9% 8.6% 7.1% 42.9% -0.1% 17.7% -2.0% -12.5% -28.6% -33.3% 8.9% 4.5% 1.8% -9.1% 0.2% 10.0% -2.1% 17.7% 2.9% -11.1% 7.5% -14.3% 26.0% -20.0% -6.2% 8.1% -16.7% 0.0% 16.6% -3.8% -11.9% 150.0% -99.2% -0.4% 0.0% 3 Mth 17.6% -40.2% -28.6% 833.3% 5.9% -30.0% -45.8% -8.3% -54.9% 82.5% -14.0% -86.7% 11.1% 55.6% 0.0% -16.7% 7.5% 62.2% 20.0% 45.0% -2.0% -7.3% -8.0% 0.0% 133.8% 66.7% -18.5% -29.5% 25.0% -12.7% -8.6% 76.4% 16.8% -14.1% -13.6% 21.8% -68.4% 47.1% 5.3% -99.2% 12.8% -14.3% 14.3% -9.2% -3.2% -4.3% 30.5% -7.1% -9.3% 3.7% -18.7% 26.3% 34.3% 8.3% -35.7% 15.9% 7.1% 15.7% 66.8% 26.7% 66.7% 62.5% -10.2% 25.2% -13.5% -22.2% -78.6% -60.0% -15.3% 13.6% -8.4% -20.0% 37.2% -59.7% -18.9% 45.2% -16.4% -50.0% 19.8% -7.7% 35.5% -55.6% -30.7% -7.0% -13.0% 185.7% 17.5% -6.6% -44.5% 833.3% -99.2% 11.9% -4.3% 6 Mth 87.5% 25.0% 6. 0% 180.0% 157.1% -51.7% -78.4% -8.3% -77.2% 123.2% 42.2% 0. 0% 160.2% -22.2% -57.1% 19.0% 56.5% 114.3% -88.0% 190.0% -19.6% -37.1% 27.4% 33.3% 360.6% 166.2% 41.5% -5.3% 66.7% -8.5% -13.4% 88.9% 50.2% 67.2% 3. 5% 19.8% -14.3% 13.6% -16.7% -98.6% 115.0% -14.3% -38.5% -2.6% -40.0% 42.5% 88.8% -33.7% 6. 9% 45.6% 22.5% 56.5% 74.1% 8. 3% -12.0% -3.1% 10.0% 113.7% 168.3% 15.2% 70.5% 265.9% 10.1% 48.4% -7.5% -53.3% 650.0% -88.6% 64.9% 42.2% 4. 1% 33.3% 99.0% -30.9% -45.0% 43.0% 51.1% 0. 0% 58.4% 9. 1% 37.1% 33.3% 10.2% -32.6% -41.2% -16.7% 31.0% -7.7% -18.6% 650.0% -98.6% 37.6% 15.2% 1 Yr 27.7% 109. 1% 52.0% -30. 0% 38.5% -68. 2% -88. 4% 46.3% -84. 7% 117. 4% NM -80. 0% 656. 3% -97. 9% -70. 0% 171. 7% 0.3% 71.4% -97. 6% -10. 8% -33. 0% -56. 4% 31.9% 100. 0% 280. 0% 306. 6% 223. 9% 33.3% 25.0% 16.8% -24. 6% 142. 9% NM 77.2% 59.5% 26.2% -50. 0% 56.3% -18. 4% -99. 4% 300. 0% -37. 8% -27. 3% -38. 4% -64. 0% 12.6% 67.3% 18.2% -16. 7% 430. 1% 56.3% 130. 2% NM 30.0% -64. 7% -56. 5% 46.4% 187. 4% 157. 7% 5.6% -45. 1% -62. 5% 104. 2% 101. 0% 8.8% 75.0% -99. 6% -83. 6% -70. 7% 35.3% -28. 4% 33.3% 171. 6% -98. 9% -48. 2% -26. 5% 257. 7% -77. 8% -6.1% -36. 8% 83.5% -46. 7% 194. 6% -51. 0% -63. 0% -54. 5% 48.0% 29.2% -53. 2% 656. 3% -99. 6% 35.9% 14.7% 52 Week -13.0% -52.1% -41.4% -72.0% -44.6% -76.3% -90.1% -44.3% -92.1% -36.2% -31.6% -93.3% -6.7% -98.3% -87.2% -37.2% -24.9% -3.2% -97.6% -41.4% -42.6% -66.3% -35.8% -80.2% -1.9% -6.9% -30.1% -43.4% -16.7% -30.2% -39.1% -28.9% -19.7% -22.7% -37.0% -9.5% -78.6% -21.9% -34.4% -99.2% -27.3% -40.4% -68.0% -54.9% -70.0% -24.6% -12.2% -35.0% -48.0% -14.7% -30.1% -11.3% -27.7% -55.2% -76.5% -82.9% -7.1% -20.1% -9.4% -18.1% -50.3% -80.9% -23.6% -13.4% -31.7% -67.6% -99.6% -98.0% -73.6% -9.5% -42.8% -55.6% -7.1% -98.9% -57.4% -43.3% -41.2% -77.8% -16.8% -88.7% -4.4% -82.6% -42.1% -73.1% -63.0% -83.3% -0.1% -32.3% -69.8% -0.1% -99.6% -46.0% -41.4%

740.3

Figure 19. Price Performance Source. Capital IQ

Page 15

C omparable C ompany Analys is > Web 2.0
Valuation Multiples C ompany Name
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 Limited 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 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 ynds torm C orporation XIN G AG Y eda ngO nline C orp. Y nk K orea Inc. High Low Average Median

S ec tor
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 P orta l S ocial Networking Media Media Media S ocial Networking G aming P odca s ting C ontent C ontent S ocial Networking G aming G aming

C ountry
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 U nited S ta tes C ana da U nited S ta tes C ana da U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G erma ny S outh K orea S outh K orea

P rimary E xc hange
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 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 OTCP K XT R A K OS E K OS E

Ticker
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 TREE T S XV :US S U NT D UO MO V CLK V OIS W ZE N W ZE W DDD W Y ND O1B C A052770 A023770

US D Market C ap ($m)
16.8 124.6 29.6 0.6 2.1 2.0 11.3 5.9 19.5 264.9 1,818.9 0.0 1,255.2 0.6 5.7 74.9 159.7 39.4 0.0 4.5 55.0 19.9 45.2 8.9 73.3 68.4 225.2 93.0 65.8 1,512.6 261.7 52.0 2,142.8 277.4 76.7 2,548.7 4.2 5.9 17.0 0.6 968.2 12.1 2.5 19.5 4.1 970.1 2,716.1 4.9 192.5 676.6 341.0 5,565.3 98.6 36.3 33.4 29.4 2,097.2 208.7 2,250.1 59.8 19.1 208.1 3,337.9 399.7 308.1 3.8 0.0 0.0 27.0 2,509.0 47.1 9.7 28,711.6 0.3 189.7 87.5 83.1 0.9 659.8 10.4 1,127.8 3.3 32.1 23.5 5.2 1.8 284.5 105.5 16.8 28,711.6 0.0 740.3 47.1

TE V/L TM R evenue
4.9x 0.8x 0.1x 15.6x 1.5x 0.7x 6.4x 0.0x 19.2x 0.3x 2.4x 0.6x 0.9x 0.7x 6.6x 35.9x 3.1x 12.6x 7.0x 1.4x 0.2x 12.1x 1.0x 13.0x 2.0x 1.0x 0.6x 3.1x 0.6x 6.9x 9.4x 0.1x 6.2x 1.7x 5.7x 3.0x 3.2x 2.2x 4.2x 0.4x 2.7x 0.5x 0.7x 2.8x 0.0x 1.5x 1.6x 0.6x 1.1x 4.5x 4.1x 0.9x 22.6x 0.2x 0.3x 0.4x 0.2x 1.0x 13.7x 1.8x 4.6x 3.9x 2.0x 1.3x 35.9x 0.0x 4.2x 1.7x

TE V/ NTM R evenue
0.1x 0.8x 5.0x 18.1x 0.5x 0.8x 1.3x 11.2x 1.0x 7.3x 0.6x 0.6x 5.6x 5.3x 1.6x 2.8x 2.3x 0.5x 3.7x 2.3x 1.0x 1.5x 3.6x 17.3x 0.2x 0.4x 0.4x 1.0x 1.8x 3.0x 18.1x 0.1x 3.4x 1.5x

TE V/L TM E B ITDA
3. 6x 10.4x 10.5x 34.1x 5. 7x 6. 6x 4. 9x 8. 1x 0. 9x 21.6x 9. 2x 44.7x 15.4x 1. 5x 15.5x 18.4x 10.9x 12.0x 7. 6x 10.4x 20.4x 1. 3x 25.0x 0. 3x 12.3x 24.6x 2. 3x 9. 6x 4. 2x 46.3x 11.8x 4. 6x 10.0x 13.7x 9. 2x 12.6x 46.3x 0. 3x 12.8x 10.4x

TE V/NTM E B ITDA
7.3x 8.6x 29.4x 4.3x 5.6x 4.8x 12.8x 4.7x 1.9x 10.7x 17.0x 11.8x 9.9x 8.6x 4.5x 7.0x 7.5x 5.3x 7.7x 7.9x 41.1x 12.9x 8.0x 3.9x 7.1x 8.2x 41.1x 1.9x 9.9x 7.8x

P /L TM E P S
17.7x 12.5x 44.6x 6.7x 6.6x 19.4x 9.3x 1.8x 10.3x 0.0x 45.4x 60.0x 13.7x 12.1x 4.9x 19.3x 47.1x 13.1x 35.2x 13.9x 3.1x 34.9x 3.2x 2.4x 6.7x 14.8x 12.9x 58.6x 2.2x 0.0x 20.0x 29.2x 11.2x 60.0x 0.0x 18.0x 12.9x

P /NTM E P S
8.8x 11.2x 26.6x 7.6x 15.1x 1.5x 13.5x 9.7x 17.6x 33.8x 4.7x 13.9x 41.2x 13.7x 8.5x 17.3x 1.6x 13.2x 39.1x 14.6x 15.2x 4.7x 13.1x 18.0x 49.0x 49.5x 6.0x 20.2x 16.7x 49.5x 1.5x 17.4x 13.9x

P /TangB V
2.0x 0.5x 0.4x 12.3x 21.5x 3.0x 0.8x 4.1x 6.9x 8.5x 2.9x 1.1x 54.3x 0.3x 2.2x 0.0x 21.0x 20.7x 2.2x 1.2x 4.8x 1.6x 0.0x 5.4x 20.9x 1.1x 0.8x 6.4x 6.2x 17.8x 1.8x 0.9x 7.2x 0.6x 3.0x 1.5x 20.9x 0.9x 2.4x 2.1x 4.9x 48.2x 97.1x 26.1x 0.1x 1.1x 1.0x 7.3x 21.1x 0.0x 9.1x 3.5x 0.8x 97.1x 0.0x 9.3x 2.9x

Figure 20. Valuation Comparison Source. Capital IQ

Page 16

C omparable C ompany Analys is > Web 2.0
S ummary by C ountry
C ompany Name United S tates C anada C hina S outh K orea J apan T aiwan Aus tralia G ermany S witzerland Hong K ong F inland Italy United K ingdom India S weden R us s ia Mala ys ia Norway G rand Total 38 10 10 8 6 3 2 2 1 1 1 1 1 1 1 1 1 1 89 US D Market C ap ($m) C hina United S ta tes J apan S weden C anada T aiwa n S outh K orea G erma ny Hong K ong Italy R us s ia S witzerland F inland Malays ia India Aus tralia United K ingdom Norwa y G rand Total 49, 633.4 5, 811.3 3, 871.5 2, 974.2 2, 488.2 1, 733.6 1, 527.4 317.0 294.6 165.4 160.9 92.0 65.9 39.8 31.0 22.1 6.0 0.1 69,234.6 Avg US D Market C ap ($m) C hina S weden J a pan T a iwan Hong K ong C a nada S outh K orea Ita ly R us s ia G ermany United S tates S witzerla nd F inland Ma la ys ia India Aus tralia United K ingdom Norway G rand Total 4, 963.3 2, 974.2 645.3 577.9 294.6 248.8 190.9 165.4 160.9 158.5 152.9 92.0 65.9 39.8 31.0 11.0 6.0 0.1 777.9 US D L TM Total R ev ($m) C hina United S tates S weden C a na da S outh K orea J a pa n T a iwan Hong K ong Ita ly R us s ia India Ma la ys ia G ermany S witzerla nd Aus tra lia F inla nd Norway United K ingdom G rand Total 4, 152.4 3, 887.3 1, 982.6 1, 015.0 707.3 634.4 385.8 361.6 242.6 156.2 82.8 77.1 68.7 40.0 17.8 5.5 2.3 0.0 13,819.5 US D L TM Total E B ITDA ($m) C hina S weden United S tates C a na da J a pa n S outh K orea T a iwan Ita ly Hong K ong R us s ia G ermany Ma la ys ia Aus tra lia S witzerla nd Norway United K ingdom F inla nd India G rand Total 2,070.2 304.6 290.0 200.0 186.0 121.9 59.8 31.9 25.1 20.4 12.5 11.1 4.5 0.8 -1.1 -2.7 -17.5 -41.4 3,276.1 E B ITDA % C hina Aus tralia T aiwan J apan S weden Malays ia Italy R us s ia S outh K orea Hong K ong S witzerland C anada G ermany United S tates India Norway United K ingdom F inland G rand Total 48. 8% 42. 8% 37. 1% 24. 2% 15. 4% 14. 4% 13. 1% 13. 1% 12. 7% 6. 9% 1. 9% -8. 5% -9. 1% -21.9% -50.0% -50.6% NA NA 5.1%

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 OT C B B Na s daqG S OT C P K K OS E TS E Na s daqG M TS X T S XV S E HK AME X AS X XT R A GTS M SWX HL S E CM BS E NY S E OS E AIM OM RTS K LS E OT C NO G rand Total 18 14 11 6 5 5 4 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 89 US D Market C ap ($m) S E HK Nas da qG S TS E OM NY S E K OS E GTS M XT R A OS E Nas da qG M TS X OT C B B CM R TS SWX T S XV AME X HLS E OT C P K K LS E BS E AS X AIM OT C NO G rand Total 31, 520. 4 24, 385. 7 3, 569. 2 2, 974. 2 1, 750. 4 1, 437. 0 1, 430. 0 317. 0 302. 3 279. 7 243. 6 230. 9 165. 4 160. 9 92. 0 76. 6 68. 5 65. 9 65. 8 39. 8 31. 0 22. 1 6. 0 0. 1 69,234.6 Avg US D Market C ap ($m) S E HK OM NY S E Nas da qG S GTS M TSE OS E K OS E CM R TS XT R A SWX HLS E TSX Nas da qG M K LS E AME X BS E T S XV OT C B B AS X AIM OT C P K OT C NO G rand Total 10,506. 8 2,974. 2 1,750. 4 1,741. 8 715. 0 713. 8 302. 3 239. 5 165. 4 160. 9 158. 5 92. 0 65. 9 60. 9 55. 9 39. 8 34. 2 31. 0 19. 1 12. 8 11. 0 6. 0 6. 0 0. 1 777.9 US D L TM Total R ev ($m) OM S E HK Na s daqG S CM NY S E RTS OS E K OS E TS E GTS M BSE Na s daqG M K LS E TS X SWX XT R A AME X OT C P K T S XV AS X HL S E OT C B B OT C NO AIM G rand Total 1,982. 6 540. 0 498. 6 242. 6 198. 5 156. 2 116. 1 106. 0 103. 7 101. 1 82. 8 82. 4 77. 1 46. 4 40. 0 34. 3 27. 9 16. 5 12. 0 8. 9 5. 5 2. 3 2. 3 0. 0 13,819.5 US D L TM Total E B ITDA ($m) Na s daqG S S E HK OM TS E NY S E K OS E GTS M CM OS E RTS Na s daqG M XT R A K LS E AME X AS X SWX OT C NO AIM TS X T S XV HL S E OT C P K BSE OT C B B G rand Total 1, 796. 0 767. 5 304. 6 160. 2 124. 1 103. 2 59. 8 31. 9 25. 8 20. 4 15. 6 12. 5 11. 1 6. 2 4. 5 0. 8 -1. 1 -2. 7 -4. 3 -4. 6 -17. 5 -34. 1 -41. 4 -62. 4 3,276.1 E B ITDA % NY S E AS X S E HK GTS M Nas da qG S TSE OS E OM K LS E CM R TS K OS E Nas da qG M T S XV S WX XT R A A ME X TSX OTCB B OTCP K BSE O T C NO A IM HLS E G rand Total 62. 5% 42. 8% 40. 6% 37. 1% 30. 4% 24. 6% 22. 2% 15. 4% 14. 4% 13. 1% 13. 1% 9. 6% 7. 7% 5. 6% 1. 9% -9. 1% -31. 8% -34. 7% -38. 8% -41. 5% -50. 0% -50. 6% NA NA 5.1%

Figure 22. Comparison by Exchange Source. Capital IQ

Page 17

Financ ing - L as t Three Months (US $ m)
F in. Amount (Million) Month J ul-09 C ompany Name P andora Media K ontera L td. Ning QuickP lay Media C aus es Outs park C onnectE du Acquia, Inc S B Nation MediaMath Metavers um iMemories Invodo J ambool Quikr India P vt. L td. OPE N S ports network S tyleC as ter Nexage TweetDeck B us c a Akademos P rotonMedia iL oop Mobile C omunitae Aloqa L at49 Thread Tributes .c om C oTweet C ellufun C likthrough C ognitive Matc h L imited B ookF res h P eople C apital Mas her Media J ul-09 Total Aug-09 Turbine S mith & Tinker Mint Zoove R ichR elevance Traffiq MediaMath B ill.c om E do Interactive InnoC entive OneR iot B alihoo B oxee P olyvore Fanbas e MOG OurS tage Z2L ive K ODA S coreloop R oblox Tremor Media iS ocket R ights Flow P lis ta C hes s C ube L inks ify iS yndica Aug-09 Total S ep-09 Twitter E ns equenc e L ivebookings Mzinga InXpo J obvite R iot G ames NextB io Imeem Vuc lip YuMe B ooyah NeoE dge Allianc e Health Networks Unis fair C onduit L abs Mocapay Fwix Vantrix Mas hL ogic G reys tripe L oomia FourS quare E duFire Trans Gaming Inc. OnL ive S ep-09 Total G rand Total 90.8 US A US A UK US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A C anada US A US A US A US A US A C anada US A 2.0 2.0 16.9 39.5 52.3 166.6 27.9 123.0 23.1 113.3 110.0 110.0 232.2 645.2 0. 5 1. 5 1.4 1.3 2.5 2.0 2.8 2.6 3.0 3.0 5.0 4.0 3.3 3. 1 6.0 6.0 5.0 9.0 8.3 8.0 8.0 16.0 10. 0 20. 0 US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A US A G erma ny US A US A US A US A G erma ny S outh Africa US A US A 1. 3 0. 5 0. 4 25.8 11.5 77.6 43.6 63.2 100.0 2.0 1.5 1.4 2. 2 2.0 3. 0 2.8 3.0 3.0 5.0 5.0 6.0 5.6 8. 5 7.3 7.0 7.0 10. 0 8.5 12.5 10.0 29.0 14.1 13. 2 C ountry US A Is rael US A C anada US A US A US A US A US A US A G erma ny US A US A US A India US A US A US A UK US A US A US A US A S pain G erma ny C anada US A US A US A US A US A UK US A US A US A 0. 3 65.0 11.1 36.8 51.5 27.0 50. 0 0. 5 0.5 1.0 1.0 1.1 1.0 1. 2 1.2 2. 0 1. 7 1. 5 1.5 2. 5 2.5 4. 0 3. 2 2.6 4. 1 4. 0 4.0 8. 0 6. 6 6.3 6.2 6.0 5.0 8.0 10. 0 8.3 8.2 Type of financ ing Angel/S eed 15. 5 15. 0 12. 0 Debt financ ing S eries A S eries B S eries C 35.0 S eries D S eries E Grand Total 35. 0 15. 5 15. 0 12. 0 10. 0 8.3 8.2 8.0 8.0 6.6 6.3 6.2 6.0 5.0 4.1 4.0 4.0 4.0 3.2 2.6 2.5 2.5 2.0 1.7 1.5 1.5 1.2 1.2 1.1 1.0 1.0 1.0 0.5 0.5 0.3 191.4 50. 0 29. 0 14. 1 13. 2 12. 5 10. 0 10. 0 8.5 8.5 7.3 7.0 7.0 6.0 5.6 5.0 5.0 3.0 3.0 3.0 2.8 2.2 2.0 2.0 1.5 1.4 1.3 0.5 0.4 221.6 100. 0 20. 0 16. 0 10. 0 9.0 8.3 8.0 8.0 6.0 6.0 5.0 5.0 4.0 3.3 3.1 3.0 3.0 2.8 2.6 2.5 2.0 1.5 1.4 1.3 0.5

Page 18

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

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

HQ
United S ta tes

Webs ite
www. booyahnetworks . com

Des cription
B ooyah Networks , Inc. s pecializ es in s earch engine marketing s ervices , s uch as P P C , P aid Inclus ion, and S E O. It als o, through S potX change divis ion, provides online video advertis ing platform that allows advertis ers and publis hers to buy and s ell online video a dvertis ing in rea l-time auction mark etplace. T he company wa s formerly known as B ulls eye9, Inc. and changed its name to B ooyah Networks , Inc. in November 2003. T he company was founded in 2001 a nd is hea dquartered in W es tmins ter, C olorado with an additional office in New Y ork C ity, New Y ork. Dopplr, Ltd. provides an online s ervice for frequent travelers . It offers beta, an online s ervice tha t enables s haring future tra vel plans with a group of fellow tra velers us ing a pers onal computer and mobile phone. T he company is bas ed in Hels inki, F inland. As of S eptember 28, 2009, Dopplr Ltd. operates as a s ubs idia ry of Nokia C orp. E duca tion R evolution, Inc. operates as an online community that provides online live video tutoring s ervices . It offers tutoring s ervices for s tudents covering various langua ges and preparing s tudents for exams on video chat s es s ions . T he company was founded in 2007 and is bas ed in S anta Monica , C alifornia. E ns equence, Inc. offers interactive televis ion and digital broadcas ting s ervices . T he company’s platform ena bles online download, online a dvertis ing, and viewer res pons e meas urement s ervices . Additionally, it provides s ys tem implementation and integration, audience mea s urement, and cus tomer care s ervices . T he compa ny’s clientele include MT v, E S P N, B B C , Dis covery C hannel, J etix, HS N, Dis ney, F ord, Nike, HP , V is a , R eebok, T oyota, G eico, T ime W arner, C omcas t, and S ky. E ns equence, Inc. was founded in 2000 and is headqua rtered in P ortland, O regon with a dditional offices in New Y ork, C alifornia, and the United K ingdom. F ours quare S olutions Inc. des igns and develops s oftware for iphones . F ours quare S olutions Inc. is bas ed in New Y ork , New Y ork. F wix, Inc. owns a nd opera tes as an online portal which collects articles from different s ources and provides current information about a local a rea, including photos , videos , events , articles , reviews , and mus ic. T he company was founded in 2008 and is bas ed in Menlo P ark, C alifornia. LL C , a game development company, produces games . It s pecializes in s ingle player and multiplayer online games . T he company G amelab, a ls o offers downloadable games , W eb ga mes , board games , ca rd games , conference games , and non-digital games . In addition, it provides cons ulting s ervices . T he company was founded in 2000 and is bas ed in New Y ork, New Y ork.

Dopplr

F inland

www. dopplr. com

E duF ire

United S ta tes

www. edufire. com

E ns equence

United S ta tes

www. ens equence. com

F ourS quare F wix G amelab

United S ta tes United S ta tes United S ta tes

www. fours quare.com www. fwix. com www. gamelab. com

G reys tripe

United S ta tes

www. greys tripe. com

G reys tripe, Inc. operates an ad-s upported mobile games and applications dis tribution platform. T he company provides online gaming and ingame advertis ing s olutions through publis her s ites . Its AdW R AP product s uite ena bles brand advertis ers to communica te their brand mes s ages to mobile audience; publis hers to s erve ads through their games ; and cons umers to download games , as well as delivers images , videos , and s crolling banners to mobile games and applications . T he company’s s olutions a ls o include AdW R AP C ampaign Ma nager, an a dvertis ing W eb interfa ce; AdW R AP C atalog P rogra m, which enables partners to dis tribute a mobile game cata log; and AdW R AP for P ublis hers platform . T he company is bas ed in S an F rancis co, C alifornia. HiveLive 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, rela tions hips , and s ha red knowledge. It offers LiveC onnect, provides a building-block approach for creating cus tom-fit online cus tomer communities ; and Hives , which are W eb 2. 0 building blocks tha t combine people, information, and permis s ions to create information res ources . HiveLive Inc. was founded in 2006 and is bas ed in B oulder, C olorado. Imeem, Inc. operates as an online community for mus icia ns , directors , photographers , and groups . It enables us ers to create a udio, video, a nd photo playlis ts ; s hare their fa vorites ; dis cover new content; track their films ; create a nd view playlis ts of their favorite s hots ; track their photos ; s hare a lbums with their friends ; hold group dis cus s ions ; change their profile info; upload new photo albums ; pos t new videos , or mus ic; and write blogs , or comments . T he company was founded in 2004 is bas ed in S an F rancis co, C a lifornia . InX po is the leading provider of priva tely-bra nded virtual events , including V irtua l T rade S hows , V irtual C areer F airs and V irtua l C orporate E vents , as well a s Audio and V ideo W ebcas ts . T hes e virtual s olutions dramatically reduce tra vel time and related cos ts , in addition to making the world a greener place to live. InXpo’s V irtual E vents provide P ublis hers with new online revenue opportunities and C orporations with the ability to generate leads , communicate, educate and network by connecting more effectively with their communities . J obvite, Inc. offers recruitment application that allows to collaborate on making hires . It s erves HR and s ta ffing executives , recruiters , hiring managers , executives , employees , and jobs eekers . T he company was founded in 2003 as F orumJ obs a nd changed its name to J obvite, Inc. in 2006. J obvite, Inc. is bas ed in S an F rancis co, C alifornia. L ivebookings , L td. operates a s an online res taurant res ervations and marketing network company in E urope. It offers mark eting and booking s ervices , as well as promotions for res taurants , booking partners , a nd diners . T he company provides C ons ole, a res taurant res ervations a nd cus tomer ma nagement s ys tem that allows res taurants to receive Internet bookings ; Loghos , a table mana gement s oftware; and res taurant management and mana ged s olutions . Livebookings , Ltd. ha s a s trategic partners hip with R es topolita n. T he company was founded in 2001 a nd is bas ed in London, the United K ingdom with additional offices in Hamburg, Zürich, and Madrid. As of 2006, Livebookings , Ltd. is a s ubs idiary of Livebookings Holdings Limited. L oomia, Inc. provides content recommendation products for the W eb s ite publis hers . It offers content dis covery and video dis covery engines , which evaluate and gather contextual data, vis itor behavior, and s ocial information a s s ociated to create recommenda tions that are releva nt to the us ers . T he company was founded in 2004 and is bas ed in S an F rancis co, C alifornia. Mas hLogic Inc. offers mas hes to pers ona lize the applications for the us ers and bloggers . It adds relevant links to W ebs ites , pers onaliz es W eb pages , increas es vis ibility and reach of content and bra nd, and enriches W eb with links to s ources . T he company was founded in 2007 a nd is bas ed in Menlo P ark, C a lifornia . 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 . Mocapa y, Inc. provides a mobile commerce pla tform tha t s upports integrated mobile payments , marketing, and dis tribution at point-of-s ale. It offers a ma rketing engine, which enables mes s aging cons umers before, during, a nd after a retail s tore trans action. T he company was formerly known a s F E E D and changed its name to Mocapay, Inc. in 2007. Mocapa y, Inc. was founded in 2006 and is bas ed in B oulder, C olorado. Mzinga, Inc. provides online bus ines s s ocial media and workforce s olutions that enable bus ines s es to harnes s the collective intelligence of employees , cus tomers , partners , a nd s hareholders . It offers hos ted and s oftware-as -a-s ervice s olutions for informa l communication, k nowledge s haring, employee tra ining a nd development, and community members ’ interaction. T he company als o provides O mniS ocial, a s oftware s olution that enables organizations to connect, communicate, collaborate, a nd attain bus ines s value from s ocial intera ctions with their employees , cus tomers , and partners us ing a s ingle environment. Its bus ines s s ocial media and learning s olutions enable marketing and cus tomer s ervice profes s ionals to engage and interact with pros pects and cus tomers ; and workforce communities and lea rning s olutions empower human res ources and corporate lea rning profes s ionals to enhance enterpris e-wide communication and collaboration. T he company s erves its clients in broadcas t media, e-commerce and e-C R M, education, enterta inment, financial s ervices , general indus try, health care, manufacturing, print media, online media, s ports and gaming, a nd technology s ectors , as well as profes s ional as s ociations and pr

HiveL ive

United S ta tes

www. hivelive. com

Imeem

United S ta tes

www. imeem. com

InXpo

United S ta tes

www. inxpo. com

J obvite

United S ta tes

www. jobvite. com

L ivebookings

UK

www. livebookings . co. uk

L oomia

United S ta tes

www. loomia. com

Mas hL ogic

United S ta tes

www. ma s hlogic. com

Mint.com

United S ta tes

www. mint. com

Mocapay

United S ta tes

www. mocapay. com

Mzinga

United S ta tes

www. mz inga .com

NextB io

United S ta tes

www. nextbio. com

NextB io, Inc. provides s oftware a s a s ervice bas ed s earch s olutions to life s cience res earchers . It offers NextB io B as ic, a W eb application tha t provides acces s to a databas e of public data; NextB io P rofes s ional that allows the individual res earcher or groups of res earchers to exploit publicly available and internally generated experimental data; and NextB io E nterpris e tha t provides colla boration a cros s therapeutic groups and geographic boundaries . T he compa ny als o provides NextB io P latform that provides ontology-bas ed s emantic framework that connects heterogeneous data and textual information, a s well as data analys is and curation, training, and s upport s ervices . NextB io, Inc. was founded in 2004 and is bas ed in C upertino, C alifornia. NeoE dge Networks , Inc. provides advertis ing s olutions for the online cas ual gaming indus try in the United S tates . T he company, through its NeoAR M technology s uite and NeoAds advertis ing network, provides a d-s upported video gaming. It als o operates Mos tF un. com G a me Network, a portal for cas ua l games , as well as offers white la bel progra ms for third party s ites . T he company s erves game publis hers , portals , and a dvertis ers . NeoE dge Network s , Inc. was formerly known as K initos , Inc. T he company was founded in 2002 and is headqua rtered in Mountain V iew, C alifornia.

NeoE dge Networks

United S ta tes

www. neoedge. com

Page 19

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

HQ
C a nada

Webs ite
www. nowpublic. com

Des cription
NowP ublic T echnologies , Inc. , a participatory news network, owns and operates NowP ublic. com platform for citizen journalis m. T he company provides politics , culture, enterta inment, and life photos and video headlines . It s erves Internet us ers , bloggers , a nd photography enthus ias ts . T he company was founded in 2005 a nd 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. O nlive develops s erver-ba s ed video game proces s ing, allowing games to run without game cons uls or high-end computers , moving away from a s ys tem in which games are purchas ed and downloa ded. T he company is ba s ed in P alo Alto, C alifornia. R iot G ames , 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 Los Angeles , C alifornia. S kype T echnologies S . A. provides S kype, a s oftware that enables individua ls and bus ines s es to ma ke free video and voice calls , s end ins tant mes s ages , and s ha re files with other S kype us ers . It als o enables to make calls to landlines and mobiles internationa lly. T he company als o provides heads ets , W ebca ms , 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 enez uela. T he company was founded in 2003 and is bas ed in Luxembourg. As of October 14, 2005, S kype T echnologies S . A. is a s ubs idiary of eB ay Inc. T iny P ictures , Inc. provides a s ervice for s haring of camera phone pictures and videos between friends . It offers R adar, a s ervice that enables us ers to s hare camera phone pictures and videos with friends . T he company was founded in 2005 a nd is bas ed in S an F rancis 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. T rans G aming Inc. engages in the development, s a le, and licens ing of portability technologies for the video games indus try. Its products include C edega, which a llows windows games to run on the Linux operating s ys tem; C ider that allows windows games to be deployed on the Intel Macintos h computers ; G ameT reeOnline. com, a digital dis tribution portal, which provides Mac gaming products and s ervices for retail a nd online game relea s es ; and S wiftS hader, a proprietary s oftwa re 3D rendering product that exploits the move to multi-core central proces s ing units (C P Us ), and the convergence of C P U and G P U technologies . T he company is further involved in mobile game development a nd online video game s ales . T he company has a s trategic collaboration with Intel C orporation to s upport its on-demand ga ming s ervice, G ameT ree. tv. T rans G aming Inc. was founded in 2000 and is headquartered in T oronto, C a nada. T witter, Inc. offers text mes s a ges and phone alerts through T witter. com to its us ers . T he company was founded in 2006 and is ba s ed in S an F rancis co, C alifornia. T witter, Inc. is a former s ubs idiary of Obvious C orp. Unis fa ir, Inc. hos ts virtual events , trade s hows , conferences , and environments for bus ines s es and enterpris es in the United S tates and internationally. T he company’s virtual events and bus ines s environments are us ed for marketing, recruiting, colla boration, and training purpos es . It s erves corporations , media a nd publis hing companies , event orga nizers , and health care organizations . T he company was founded in 2000 and is bas ed in Menlo P a rk, C alifornia with a dditional offices in New Y ork and Is rael. X inLab, Inc., doing bus ines s as V uC lip, operates as a mobile video s earch s ite. It provides mobile video s earch and delivery s olution tha t a llows its cus tomers to acces s various videos on the Internet and watch it on the video-enabled phone. T he company’s s olutions als o enable online publis hers and content owners to mobilize their video content through its V uclip V ideo AP I P rogram. In a ddition, it offers mobile video s treaming with a rich multimedia experience in various wireles s networks and hands ets . T he company was founded in 2000 and is bas ed in Milpitas , C alifornia with additional offices in B eijing, C hina; and Delhi, India. Y ext, Inc. provides online directories . It focus es on repres enting va rious bus ines s es acros s the United S tates . T he company wa s founded in 2006 and is bas ed in New Y ork, New Y ork . Y uMe, Inc. operates a s a video advertis ing network on W eb. It offers ad mana gement s ys tem tha t enables a dvertis ers and publis hers to identify, clas s ify, and track content through digital media platforms , s uch a s W eb, downloads , mobile, a nd IP T V . T he company als o enables publis hers to organize video on their s ite into content channels , s uch as automotive, financial s ervices , lifes tyle, news , mus ic, s ports , entertainment, and fa mily friendly. In addition, it offers real-time targeting, mea s urement, and optimization; content dis tribution and viral a dvertis ing opportunities ; a s uite of intera ctive ad placements ; a nd video monetiz ation s ervices . F urther, the company provides a beha viora l targeting s ys tem that enables advertis ers to target their mes s ages to viewers on a nationa l s cale bas ed on video viewing interes ts a nd purchas e intent. Y uMe, Inc. was founded in 2004 and is headquartered in R edwood C ity, C alifornia.

OnLive R iot G ames S kype

United S ta tes United S ta tes Luxembourg

www. onlive. com www. riotgames . com www. s kype. com

Tiny P ictures

United S ta tes

www. tinypictures . us

Trans G aming

C a nada

www. tra ns gaming.com

Twitter Unis fair

United S ta tes United S ta tes

www. twitter. com

Vuclip

United S ta tes

www. vuclip. com

Yext YuMe

United S ta tes United S ta tes

www. yext. com www. yumenetwork s . com

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

Page 20

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

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

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

Tor on to 4 16. 8 60. 76 00

M ontr eal 51 4. 39 9. 150 0

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

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

R egi na 306. 566. 7550

www.researchcapital.com

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