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SOFTWARE & SERVICES

8 DECEMBER 2009

WEB 2.O WEEKLY
LATTER HALF OF 2009: FORGING FORWARD
D EAL VAL U E ON PA C E T O M E ET N OV E MB E R L E V EL

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

December starts at strong pace: Total transaction value in the W eb 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Financing Activity Last Twelve Months
400.0 14.6 350.0 14.0 16.0

300.0

11.3

12.0

250.0 9.0 (US$m)

9.8

10.0

200.0 7.1 6.7 150.0 4.9 6.5 6.6 6.2 5.6

7.6

8.0 6.3 6.0

100.0

4.0

50.0

2.0

0.0 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Total Jul-09 Average Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

0.0

*May-09 includes $200m FB investment

Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our W eb 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual W orlds segment to the highest total. Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
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

(US$m)

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THE WEB 2.0 UNIVERSE Eighty-nine public Web 2.0 companies: Our W eb 2.0 universe contains 89 companies, with a combined market cap of approximately $71 billion (Figure 1). The median market cap for the group is $41 million, with average trailing revenue of $164 million (median $52 million). The companies are also generally profitable with a median EBITDA margin of 11.1%. On a valuation basis, the overall average is 5.3x trailing revenue (median 1.6x) and 11.0x trailing EBITDA (median 7.8x). 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 knet AG As s ociated Media Holdings Inc. B igs tring C orp. B eta wave C orporation B eyond C ommerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C hangyou. com L imited C hina G a teway C orporation C hines e G amer Interna tiona l C LIC K E R Inc. C ornerW orld C orpora tion C yberplex Inc. DADA S pA DXN Holdings B hd Dibz International, Inc. DigitalP os t Interactive, Inc. DigitalT own, Inc. Dolphin Digital Media , Inc. E olith C o. Ltd. E xtens ions , Inc. F luid Mus ic C a nada , Inc. F rogs ter Interactive P ictures AG G ama nia Digita l E ntertainment C o., Ltd. G ameOn C o Ltd. G eoS entric O yj G iant Interactive G roup, Inc. G iga Media Ltd. G ravity C o., Ltd G ree, Inc. G ungHo O nline E ntertainment, Inc. HanbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is eemedia Inc. J umbuck E nterta inment 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 MO K O .mobi Limited Myriad G roup AG NE O W IZ G ames C orpora tion NetDragon W ebS oft, Inc. Neteas e. com Inc. NeuLion Incorporated NeXplore C orporation Ngi G roup Inc. Northgate T echnologies L imited O pen T ext C orp. O penwave S ys tems Inc. P erfect W orld C o. , Ltd. P NI Digital Media Inc. Q uepa s a C orp. O AO R B C Information S ys tems S handa Interactive E nterta inment Ltd. S hutterfly, Inc. S K C ommunications C o., Ltd. S NAP Interactive, Inc. S NM G loba l Holdings S ocial Media V entures Inc. S ocialwis e, Inc. S ohu. com Inc. S park Networks , Inc. S pectrumDNA, Inc. T encent Holdings Ltd. T he P arent C ompany T he9 Limited T heS treet. com, Inc. T ree.C om, Inc. Unis erve C ommunica tions C orp. United O nline Inc. UOMO Media, Inc V alueC lick Inc. V OIS , Inc. W ebzen Inc. W izzard S oftwa re C orporation W orlds . com Inc. W ynds torm C orpora tion XING AG Y D O nline C orp. Y nk K orea Inc. High Low Average Median

L TM as of Ticker
9/30/2009 9/30/2009 9/30/2009 9/30/2009 6/30/2007 9/30/2009 9/30/2009 9/30/2009 3/31/2009 9/30/2008 9/30/2009 9/30/2009 9/30/2008 9/30/2009 5/31/2009 7/31/2009 9/30/2009 6/30/2009 8/31/2009 NA 9/30/2009 8/31/2009 9/30/2009 12/31/2008 9/30/2009 9/30/2009 6/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 3/31/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 4/30/2009 9/30/2009 6/30/2009 6/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 6/30/2009 6/30/2009 12/31/2008 9/30/2009 9/30/2009 9/30/2009 6/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 6/30/2009 9/30/2009 12/31/2007 9/30/2009 9/30/2009 12/31/2008 9/30/2009 9/30/2008 12/31/2008 6/30/2009 9/30/2009 9/30/2009 9/30/2009 9/30/2009 8/2/2008 12/31/2008 3/31/2009 9/30/2009 8/31/2009 9/30/2009 7/31/2009 9/30/2009 6/30/2009 9/30/2009 9/30/2009 9/30/2009 NA 9/30/2009 12/31/2007 12/31/2008 AC LZ A052790 3838 X T R A:A5A AS MH BS GC B W AV B Y OC AIM: B G T BWBA C HIN. A C Y OU CGWY G T S M: 3083 C LK Z CWR L T S X :C X C M: DA DX N DIB Z DG LP DG T W DP DM A041060 E XT I T S X :F MN FRG 6180 3812 G E O 1V GA G IG M GR VY T S E : 3632 3765 A047080 IAC I IAS A. E IE E AS X :J MB T S X :K AB 3888 T S X V :LM LVW D L OO K MAG Y 2121 MT G B MK B MY R N A095660 777 NT E S T S X :NLN NX P C 2497 590057 OT E X OP W V PWRD T S X V :P N QP S A R BCI S NDA S FLY A066270 S TVI S NMN S MV I S C LW S O HU L OV S P XA 700 K IDS . Q NC T Y TS CM TR E E T S X V :US S UNT D UO MO V C LK V O IS W ZE N W ZE W DDD W Y ND O 1B C A052770 A023770

E xc hange
OT C B B K OS E TS E XT R A OT C P K OT C B B OT C B B OT C B B AIM OT C P K Na s daqG S Na s daqG S OT C P K GTS M OT C B B OT C B B TS X CM K LS E OT C P K OT C B B OT C B B OT C B B K OS E OT C P K TS X XT R A GTS M TS E HL S E NY S E Na s daqG S Na s daqG M TS E OS E K OS E Na s daqG S OT C B B T S XV AS X TS X S E HK T S XV OT C P K Na s daqG M OT C B B TS E OM AS X SWX K OS E S E HK Na s daqG S TS X OT C P K TS E BSE Na s daqG S Na s daqG S Na s daqG S T S XV OT C B B R TS Na s daqG S Na s daqG S K OS E OT C B B OT C P K OT C P K OT C B B Na s daqG S AME X OT C B B S E HK OT C P K Na s daqG S Na s daqG M Na s daqG M T S XV Na s daqG S OT C B B Na s daqG S OT C B B Na s daqG M AME X OT C B B OT C P K XT R A K OS E K OS E

Trading C urrency HQ
US D KR W JPY E UR US D US D US D US D GBP US D US D US D US D TWD US D US D C AD E UR MY R US D US D US D US D KR W US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D C AD AUD C AD HK D C AD US D US D US D JPY SEK AUD C HF KR W HK D US D C AD US D JPY INR US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D HK D US D US D US D 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 United S ta tes S outh K orea J a pan G ermany United S ta tes United S ta tes United S ta tes United S ta tes United K ingdom United S ta tes Hong K ong C hina United S ta tes T aiwa n United S ta tes United S ta tes C anada Italy Ma la ys ia United S ta tes United S ta tes United S ta tes United S ta tes S outh K orea United S ta tes United S ta tes G ermany T aiwa n J a pan F inland C hina T aiwa n S outh K orea J a pan J a pan S outh K orea United S ta tes C anada C anada Aus tralia C anada C hina C anada United S ta tes United S ta tes United S ta tes J a pan S weden Aus tralia S witzerland S outh K orea C hina C hina C anada United S ta tes J a pan India C anada United S ta tes C hina C anada United S ta tes R us s ia C hina United S ta tes S outh K orea United S ta tes United S ta tes United S ta tes United S ta tes C hina United S ta tes United S ta tes C hina United S ta tes C hina United S ta tes United S ta tes C anada United S ta tes C anada United S ta tes United S ta tes S outh K orea United S ta tes United S ta tes United S ta tes G ermany S outh K orea S outh K orea

C urrent P rice
0. 55 20,800 40,550 4 0. 76 0. 03 0. 09 0. 05 0. 01 0. 05 2. 43 30. 99 0. 01 426 0. 01 0. 03 1 6. 28 0. 57 0. 00 0. 05 1. 40 0. 27 540 0. 30 1. 80 18. 75 47. 10 65,500 0. 05 7 3. 86 1. 46 4,440 154,000 3,900 19. 00 0. 11 0. 19 0. 32 0 6 0. 96 0. 03 1. 07 0. 02 784000. 00 329. 60 0. 14 4. 84 44200. 00 4 37. 23 0. 70 1 24140. 00 30. 55 39. 22 2. 24 43. 35 1. 71 2 1. 60 51. 64 15. 76 9550. 00 0 0. 00 0 0. 50 52. 34 2 0 147 0. 01 7. 48 2. 28 7. 23 0. 04 7. 00 0 10 0 3. 00 0. 38 0. 10 0. 04 33. 40 7000. 00 3695. 00

US D Market C ap ($m)
15. 8 151. 1 24. 7 26. 5 32. 9 1.8 2.5 2.7 5.3 4.2 257. 5 1,704. 5 0.2 1,103. 5 0.5 2.9 74. 1 149. 0 36. 9 0.0 4.6 38. 3 15. 4 66. 8 13. 3 104. 4 70. 4 222. 9 70. 8 65. 8 1,628. 3 210. 4 40. 6 2,222. 9 197. 3 71. 6 2,507. 4 7.8 9.2 13. 6 0.6 796. 9 11. 0 1.0 18. 3 10. 2 1,351. 0 3,119. 2 12. 5 207. 5 780. 8 295. 3 4,818. 6 74. 9 37. 9 33. 4 22. 2 2,211. 3 187. 1 2,157. 0 53. 8 21. 6 222. 0 3,473. 1 404. 6 335. 1 3.3 0.0 0.0 23. 4 2,012. 8 48. 8 6.8 34, 567.1 0.2 187. 8 69. 8 78. 8 0.9 592. 1 5.2 859. 2 9.9 35. 6 20. 3 5.4 0.7 257. 9 88. 0 16. 5 34, 567.1 0.0 785.8 39. 5

US D L TM Total R ev ($m)
4. 1 115.9 74. 0 103.6 0. 1 0. 1 8. 4 13. 5 0. 0 0. 0 334.2 255.3 6. 7 68. 3 2. 5 6. 8 105.6 241.9 77. 3 NA 1. 2 0. 0 0. 3 15. 4 0. 0 5. 6 9. 6 151.2 79. 3 4. 7 202.2 183.6 49. 9 210.3 120.7 57. 6 1, 359. 6 0. 0 1. 8 16. 7 67. 9 143.4 1. 3 10. 4 54. 0 0. 1 139.6 2, 002. 6 0. 7 63. 0 207.3 91. 4 482.9 24. 9 1. 7 81. 7 46. 4 814.5 190.5 286.1 21. 0 0. 2 157.4 694.3 223.1 192.7 3. 4 2. 0 0. 1 0. 0 501.0 47. 5 0. 1 1, 588. 4 112.0 250.6 67. 0 217.1 16. 1 996.8 0. 8 545.7 0. 0 23. 0 5. 2 0. 1 NA 62. 5 57. 4 11. 9 2,002. 6 0. 0 163.6 51.9

US D L TM Total E B ITDA ($m)
(1.5) 25. 7 3.8 (2.4) (2.3) (1.0) (14. 3) (12. 4) (2.7) (4.6) 20. 0 157.4 (6.6) 39. 6 (1.2) NM 11. 7 31. 8 (84. 0) NM (0.9) (1.8) (4.6) (3.6) NM (3.0) (4.5) 24. 9 18. 6 (19. 0) 137.9 NM 17. 7 122.2 26. 9 (0.3) 82. 4 (0.6) (4.1) 7.2 4.0 57. 6 (2.3) 0.4 (4.5) (2.3) 46. 1 282.9 (2.4) 3.4 55. 7 27. 8 291.8 (16. 1) (13. 3) 3.2 (49. 8) 211.1 6.2 157.4 2.3 (9.8) 20. 6 317.2 27. 0 12. 5 0.5 (0.7) (0.1) (5.6) 218.4 10. 0 (2.5) 811.3 (13. 5) 85. 5 1.9 9.7 0.1 212.9 (0.4) 130.8 (1.0) 2.5 (3.9) (0.6) NM 16. 9 12. 4 1.3 811. 3 -84.0 40.8 1. 9

E B ITDA %
-36. 5% 22. 2% 5.1% NM NM NM NM -91. 9% NM NM 6.0% 61. 7% -98. 9% 58. 0% -45. 8% NM 11. 1% 13. 1% NM NM -73. 8% NM NM -23. 6% NM -54. 0% -47. 0% 16. 5% 23. 5% NM 68. 2% NM 35. 4% 58. 1% 22. 3% -0.6% 6.1% NM NM 42. 8% 5.8% 40. 2% NM 4.1% -8.4% NM 33. 0% 14. 1% NM 5.4% 26. 8% 30. 4% 60. 4% -64. 5% NM 3.9% NM 25. 9% 3.3% 55. 0% 11. 0% NM 13. 1% 45. 7% 12. 1% 6.5% 15. 6% -34. 8% -60. 6% NM 43. 6% 21. 0% NM 51. 1% -12. 0% 34. 1% 2.9% 4.5% 0.9% 21. 4% -54. 2% 24. 0% NM 11. 0% -76. 4% NM NM 27. 0% 21. 6% 10. 5% 68. 2% -98. 9% 5.6% 11. 1%

TE V/L TM R evenue
5. 0x 1. 0x 0. 0x 44.4x 1. 1x 0. 7x 5. 5x 0. 0x 15.0x 0. 2x 1. 9x 0. 5x 0. 8x 0. 6x 5. 7x 4. 5x 18.2x 7. 2x 1. 3x 14.8x 0. 7x 10.1x 1. 3x 1. 0x 0. 6x 5. 3x 0. 4x 5. 1x 8. 1x 8. 7x 1. 8x 16.6x 3. 2x 3. 7x 1. 6x 2. 5x 24.6x 0. 5x 2. 8x 0. 4x 0. 5x 2. 5x 0. 0x 1. 3x 1. 7x 0. 5x 1. 1x 4. 5x 2. 9x 0. 9x 48.7x 23.9x 0. 2x 0. 1x 0. 2x 0. 3x 0. 8x 7. 1x 1. 3x 4. 2x 3. 2x 1. 6x 48.7x 5.3x 1. 6x

TE V/L TM E B ITDA
4. 3x 0. 5x 11. 3x 8. 8x 25. 8x 4. 6x 6. 2x 8. 0x 17. 4x 5. 9x 10. 5x 1. 0x 12. 8x 26. 4x 12. 9x 13. 8x 5. 2x 10. 8x 13. 2x 0. 8x 22. 4x 0. 4x 10. 8x 26. 7x 3. 2x 6. 7x 4. 5x 46. 7x 2. 7x 5. 5x 37. 2x 4. 0x 5. 4x 11. 9x 7. 7x 46. 7x 11.0x 7. 8x

E mployees
11 NA NA 3 3 4 48 86 NA 46 2, 227 628 37 NA 22 16 NA NA NA NA 7 3 NA NA 2 NA NA NA NA 118 1, 570 751 469 NA NA NA 3, 200 NA NA 79 NA 2, 271 NA NA 90 14 NA 2, 969 NA 405 NA 2, 426 3, 109 237 NA NA NA 3, 900 590 2, 096 NA 74 NA 3, 124 514 NA 11 33 NA NA 3, 197 183 7 6, 194 347 1, 626 310 700 NA 1, 469 NA 1, 189 4 328 110 1 NA 266 NA NA 6, 194 1 906 252

Figure 1. Web 2.0 Universe Summary Source. Capital IQ

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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 ) December starts at strong pace: Total transaction value in the W eb 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).

Financing Activity Last Twelve Months
400.0 14.6 350.0 14.0 16.0

300.0

11.3

12.0

9.8 250.0 9.0 (US$m) (US$m) 10.0

200.0 7.1 6.7 150.0 4.9 6.5 6.6 6.2 5.6

7.6

8.0 6.3 6.0

100.0

4.0

50.0

2.0

0.0 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Total Jul-09 Average Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

0.0

*May-09 includes $200m FB investment

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

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Deal round-up for December: The large deal highlights for the month include: • • • Lala – streaming music site – was acquired by Apple for a rumoured $80 million. Zoosk – online social dating web site – raised $30 million in its fourth financing. gWallet – developer of virtual currency technology for monetizing brands, publishing, and social media platforms – raised $12.5 million in a first round financing.

All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23 and 24 (at end of note).

Financing & M/A Summary - Last Three Months
200.0

180.0

160.0

140.0

120.0 (US$m) Dec-09 100.0 Nov-09 Oct-09 80.0

60.0

40.0

20.0

0.0 PlayFish Lala RockYou Ku6 Playdom Zoosk DailyMotion Sezmi Phoenix New Media Motley Fool Yext PopCap Games Engine Yard Ecast Network Millennial Media HubSpot Qunar.com Zynga gWallet Jive Software FeedRoom Evernote Ooyala Spigit Movik Networks ScanScout CubeTree wooga Box.net SeekingAlpha Aviary Reality Mobile Bizo Alice.com Eventbrite Watercooler Nival Network Placecast AppNexus Vdopia Altruik Smaato Sometrics Scout Labs Amie Street JanRain StockTwits ViVu Credit Karma Fizzback Blekko Overtone Godengo Playfire Technorati SimpleGeo Onehub DataSync Prosper.com Imeem Hot Potato DailyBooth Linkedex StatusNet IngBoo Chango PBworks Adfonic Scoopler Listia VEVO Aurora Feint SocialMedia Joost

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

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Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our W eb 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months (Figure 4). The $400 million acquisition of Playfish skews the Virtual W orlds segment to the highest total.
Capital Market Activity by Sector - Last Three Months
200.0 180.0 160.0 140.0 120.0 (US$m) 100.0 80.0 60.0 40.0 20.0 400.0 0.0 Gaming Documents Travel Media Collaboration Music Widget Infrastructure Mobile Ad Search Social Networks Virtual Goods Video Virtual World Advertising Analytics 117.3 98.5 81.0 57.0 50.0 44.1 40.9 39.8 37.5 30.0 22.2 21.1 15.0 12.5 10.0 9.9 Social Commerce 8.5 Mobile 7.0 Crowdsourced Content 6.4 Classified 4.0 Financial Services 3.9 Microblog 2.2 Publishing 1.2 Enterprise 0.8 Aggregation 0.7 Wiki 1

# companies
1 6 6 2 3 1

5

6

4

6

4

6

3

1

1

1

2

1

1

2

3

2

1

1

1

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

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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 Q1/09. Since then, the index has diverged in a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance
250

200

150

100

50

0 1/19/2009 2/16/2009 3/16/2009 3/30/2009 4/13/2009 4/27/2009 5/11/2009 5/25/2009 6/22/2009 7/20/2009 8/17/2009 8/31/2009 9/14/2009 9/28/2009 12/8/2008 11/9/2009 12/22/2008 10/12/2009 10/26/2009 11/23/2009 12/7/2009 1/5/2009 2/2/2009 3/2/2009 6/8/2009 7/6/2009 8/3/2009

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

^COMP - Share Pricing

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Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 22 companies showed negative 1-week returns.

S K Communications Co., Ltd. Quepas a Corp. Y D Online Corp. Tree.Com, Inc. Mix i, Inc. Webz en Inc. S hutterfly , Inc. Ngi G roup Inc. V alueClick Inc. Modern Times G roup Mtg A B HanbitS of t, Inc. Frogs ter Interactive Pictures G ameOn Co Ltd. NEOWIZ Games Corporation PNI Digital Media Inc. S handa Interactive Open Tex t Corp. United Online Inc. LookS mart, Ltd. Tencent Holdings Ltd. Giant Interac tive G roup, Inc. CDC Corp. XING A G G amania Digita l Entertainment A Q Interactive, Inc. Y nk K orea Inc. DA DA S pA My riad Group A G A s knet A G S park Netw orks , Inc. The9 Limited Perfect World Co., Ltd. NetDragon WebS of t, Inc. TheS treet.com, Inc. IA C/InterA ctiveCorp. K ings of t Co. Ltd. Neteas e.com Inc. G ravity Co., Ltd Chines e Gamer International G ree, Inc. Eolith Co. Ltd. G igaMedia Ltd. Cy berplex Inc. Changy ou.com Limited A ctoz S of t Co., Ltd. Openw ave S y s tems Inc. Northgate Technologies Limited S ohu.com Inc. Fluid Mus ic Cana da, Inc. -0.15
Figure 6. 1-Week Price Performance Source. Capital IQ

1 Week P rice P erformance
12.1% 12.0% 10.3% 9.9% 8.7% 14.4% 22.3%

26.7%

-10.0% -0.1

-0.2% -0.6% -0.7% -0.9% -1.8% -2.0% -2.1% -2.3% -2.6% -2.6% -2.7% -3.3% -3.5% -3.6% -4.0% -4.1% -4.6% -4.8% -5.1% -5.3% -6.1% -0.05 0

6.4% 6.3% 6.3% 5.6% 5.0% 4.6% 3.6% 3.6% 3.0% 2.9% 2.9% 2.9% 2.3% 2.1% 1.5% 1.4% 0.2% 0.0% 0.0%

0.05

0.1

0.15

0.2

0.25

0.3

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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
Offerpal Media, Inc .; S ocialwis e, Inc . (OTC B B : S C L W )

Headline
S ocia lwis e, Inc. E nters into S trategic P artners hip with O fferpal Media

Notes
S ocialwis e, Inc. announced tha t it ha s entered into a s trategic partners hip with O fferpal Media , Inc. T he two companies will work together to promote their exis ting pa yment s olutions , a s well as develop new pa yment progra ms s pecifically for the teen a nd tween ma rket. Offerpa l will fea ture B illMyP a rents on its proprietary monetiza tion pla tform as a n a lterna te pa yment s olution alongs ide V is a , Ma s terC a rd, P a yP al and others , providing teens a nd tweens with an eas y way to a cquire virtual currency a cros s O fferpa l's network of 2, 000+ publis hers . T he virtual currency will be s pent on items s uch a s virtual gifts , s ubs criptions , game-play upgra des , and other virtua l goods . B illMyP arents and O fferpal will a ls o collabora te to launch innovative programs tha t will expa nd their rea ch into the teen and tween online pa yment s olutions ma rket. S ohu. com Inc. announced the promotion of Ms . B elinda W a ng to C o-P res ident a nd C hief Opera ting O fficer, and Mr. Xia ochua n W ang to C hief T echnology O fficer. is eemedia Inc. , Annual G eneral Meeting, Nov 30, 2009, a t 16: 00 US E a s tern T ime. Loca tion: Le Meridien K ing E dwa rd 37 K ing S treet E as t, T oronto, O ntario, C a nada. Agenda: T o receive and cons ider the a udited cons olida ted financia l s ta tements of the corporation for the fis ca l yea r ended J une 30, 2009, together with the report of the auditors thereon; to elect directors ; to a ppoint auditors a nd to a uthorize the directors to fix their remuneration; a nd to tra ns act s uch further or other bus ines s a s may properly come before the Meeting or any adjournment or adjournments thereof.

S ohu.c om Inc . (Nas daqG S : S OHU) is eemedia Inc . (TS XV: IE E )

S ohu. C om Announces Ma na gement P romotions is eemedia Inc. , Annual G eneral Meeting, Nov 30, 2009

B etawave C orporation (OTC B B : B WAV) B etawa ve C orporation Amends R es tated Loa n O n November 25, 2009, B eta wa ve C orporation a nd S ilicon V a lley B a nk entered into an Amended a nd R es ta ted Loan a nd S ecurity Agreement (the 'A& R Loan Agreement'') which a mends a nd res ta tes the Loan a nd S ecurity Agreement, dated as of a nd S ecurity Agreement; Announces C hief Ma rch 27, 2009 between S ilicon V a lley B a nk a nd the company. T he A&R L oa n Agreement amended a nd res tated the E xecutive C hanges O rigina l Loa n Agreement to, among other things : (i) modify the interes t rate on the fina nced receiva ble to be ba s ed on the gros s amount (rather tha n the fina nced a mount) of the fina nced receiva bles and other rela ted fees des cribed below, (ii) delete the letter of credit, foreign exchange a nd cas h mana gement s ub facilities a nd s ub limits , (iii) a ccelera te the ma turity date from Ma rch 27, 2011 to J a nuary 31, 2010 (the 'Ma turity Da te''), (iv) increas e the default rate from 4% to 5% a nd (v) remove the fina ncia l covenants in the O rigina l L oa n Agreement. T he ava ila ble revolving credit line remains s et a t $1. 5 million. T he borrowings under the A&R L oan Agreement rema in s ecured and ba s ed upon a percentage of certa in eligible billed accounts receiva bles of the company, and unbilled accounts receiva bles a re no longer included in the borrowing ba s e. Under the A&R L oa n Agreement, the C ompa ny may borrow, repay a nd reborrow under the line of credit fa cility at any time s ubject to certa in terms and conditions , but the adva nces a re s ubject to a lockbox arra ngement and are pa id when pa yment is received on s uch fina nced receivable. Adva nces under the line of credit facility s ha ll continue to a ccrue interes t at a per a nnum rate equa l to the grea ter of (i) 3. 0% a bove S ilicon V a lley B a nk's a nnounced prime ra te or (ii) 7. 0% which interes t s ha ll be charged to the coa ny bas ed on the gros s amount of the fina nced receiva bles . T he A&R L oa n Agreement als o requires tha t the compa ny pay certain a dditional monthly fees including a collatera l ha ndling fee equa l to 0. 50% of the gros s a mount of the financed receiva bles . Under the A& R Loan Agreement, the minimum monthly finance cha rge (including interes t a nd fees ) to be paid by the compa ny is $5, 500. T he obliga tions under the A&R L oan Agreement rema in colla tera lized by s ubs tantia lly a ll of the compa ny's a s s ets . T he A& R L oa n Agreement retains the a ffirma tive and negative covenants principally rela ting to liens , indebtednes s , a nd inves tments , dis tributions to s hareholders a nd the us e a nd dis pos ition of a s s ets . C erta in covenants were a mended purs ua nt to the A& R Loan Agreement a nd the financia l covena nts s et forth in the O rigina l Loa n Agreement were removed. In addition, the A&R L oa n Agreement contains cus toma ry events of default. O n November 23, 2009, the company and Matt F reeman mutua lly agreed to termina te his employment a s C hief E xecutive O fficer of the compa ny effective a s of November 30, 2009. Mr. F reema n will rema in on the company's boa rd of directors . T he boa rd a ls o a ppointed T abreez V erjee, currently the P res ident of the compa ny, as interim C hief E xecutive O fficer.

is eemedia Inc . (TS XV: IE E )

is eemedia Inc. R eports Una udited C ons olida ted E a rnings R es ults for the F irs t Q uarter E nded S eptember 30, 2009

is eemedia Inc. reported unaudited cons olidated ea rnings res ults for the firs t quarter ended S eptember 30, 2009. T he compa ny reported for the net los s and comprehens ive los s wa s C AD 1, 009, 339 or C AD 0. 02 los s per bas ic a nd diluted s ha re on revenue of C AD 484, 718 aga ins t net los s and comprehens ive los s of C AD 1, 518, 400 or C AD 0. 03 los s per ba s ic a nd diluted s ha re on revenue of C AD 329, 640 for the s a me period las t yea r. Los s before inters t was C AD 1, 011, 656 a ga ins t C AD 1, 535, 736 for the s ame period la s t yea r. C as h us ed in opera ting a ctivities wa s C AD 851, 683 aga ins t C AD 1, 256, 749 for the s a me period las t yea r. P urcha s e of property a nd equipment wa s C AD 1, 721 a gains t C AD 10, 927 for the s ame period la s t year.

Figure 7a. Key Developments Source. Capital IQ

Page 9

K ey Developments
C ompany
C L IC K E R Inc . (OTC B B : C L K Z)

Headline

Notes
O n 12/01/2009, C L IC K E R Inc. a nnounced that they will be una ble to file their next 10-K by the deadline required by the S E C . B eta wa ve C orporation a nnounced tha t C E O Matt F reema n, who joined the compa ny in J uly 2008, will tra ns ition into the role of V ice C ha irma n. S ha nda Interactive E nterta inment Ltd. was es timated to reap a revenue of $197. 69 million for the three months ended S eptember 30, 2009. T he number wa s $137. 3 million a yea r a go. T he company's ea rnings per s hare hit $0. 88, higher than $0. 68 a yea r a go. O pen T ext C orporation a nnounced the relea s e of vers ion 14 of its C onnectivity S olutions cons is ting of O pen T ext E xceed, the lea ding P C X s erver s olution for W indows , O pen T ext Hos tE xplorer, its terminal emulation s uite, a nd its s ecure s hell clients and network file s ys tem s oftwa re. L evera ging the new productivity a nd s ecurity features of W indows 7, this relea s e offers orga niza tions a s mooth tra ns ition to the new Micros oft pla tform. W orking clos ely with Micros oft, O pen T ext des igned its la tes t C onnectivity S olutions to ta ke a dva nta ge of W indows 7 technologies . S pecifica lly, us ers of the new s oftware s uite will be a ble to take a dva ntage of the following enha ncements : S upport for W indows 7 T ouch technology a llows us ers to intera ct with UNIX and Mainframe applica tions through an intuitive and ea s y to us e touch interface; J ump Lis ts in the T as k B ar and S tart Menu provide fa s ter a cces s to frequently a cces s ed items a nd frequently performed ta s ks ; Multiple Documents preview reduces the time s pent s witching between applica tions a nd open s es s ions ; New F IP S 140-2 va lidated cryptographic module provides s tronger s ecurity to connections .

C L IC K E R Inc. a nnounced dela yed annua l 10-K filing B etawave C orporation (OTC B B : B WAV) B etawa ve C orporation Appoints Ma tt F reema n a s V ice C hairman S handa Interac tive E ntertainment L td. S ha nda Intera ctive E nterta inment Ltd. P rovides E a rnings G uidance for the T hird (Nas daqG S : S NDA) Q uarter E nded S eptember 30, 2009 Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. R eleas es New V ers ion of C onnectivity S olutions C ompatible with W indows 7

VOIS , Inc. (OTC B B : VOIS )

V O IS , Inc. to L aunch C loud Applica tion Development P orta l

V OIS , Inc. a nnounced tha t the compa ny is launching a new porta l within its exis ting s ite fra mework to provide tes ting a nd development, code and da ta repos itories for both contract a nd freela nce s oftwa re developers working to build next genera tion cloud applica tion s oftwa re. Ava ila ble J a nuary 2010, the V OIS C loud Application F os tering E nvironment (C AF E ) is to provide cloud-ba s ed s tora ge for the development of code, s haring of code and AP I development proces s es . Additiona lly, the da ta s tora ge ma y be us ed for the tes ting of new a nd innova tive a pplica tions being developed by freela nce s oftwa re des igners , open s ource community members , a nd others in order to s peed adoption of the ra pidly ma turing technology a rea now commonly referred to by both pres s a nd indus try as 'C loud C omputing'. S ha nda Interactive E nterta inment Ltd. a nnounced una udited cons olida ted fina ncia l res ults for the third qua rter and nine months ended S eptember 30, 2009. In the third quarter of 2009, the compa ny reported net revenues of R MB 1, 382. 9 million ($202. 5 million), repres enting a n increas e of 48% from R MB 936. 5 million year-over-yea r. Opera ting income for the third qua rter of 2009 wa s R MB 510. 7 million ($74. 8 million), a n increas e of 34% from R MB 381. 5 million in the third qua rter of 2008. Non-G AAP opera ting income for the third qua rter of 2009 wa s R MB 595. 0 million ($87. 1 million), an increa s e of 51% from R MB 392. 8 million in the third qua rter of 2008. Net income a ttributa ble to ordinary s ha reholders for the third qua rter of 2009 was R MB 435. 3 million ($63. 7 million), an increa s e of 29% from R MB 337. 1million in the third quarter of 2008. E arnings per diluted ADS in the third qua rter of 2009 were R MB 6. 18($0. 90), compared with R MB 4. 62 in the third qua rter of 2008. Non-G AAP net income attributable to ordina ry s ha reholders for the third quarter of 2009 was R MB 519. 6 million ($76. 0 million), a n increa s e of 49% from R MB 348. 4 million in the third quarter of 2008. Non-G AAP earnings per diluted ADS in the third qua rter of 2009 were R MB 7. 40($1. 08), compa red with R MB 4. 78 in the third qua rter of 2008. T he company reported income before income ta x expens es , equity in los s of affilia tes of R MB 582. 4 million a nd diluted ea rnings per s ha re of R B M 3. 09 compa red to income before income tax expens es , equity in los s of a ffiliates of R MB 434. 4 million and diluted ea rnings per s hare of R B M 2. 31 for the s a me period of la s t yea r.

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

S ha nda Intera ctive E nterta inment Ltd. Announces Unaudited C ons olida ted F ina ncial R es ults for the T hird Q uarter a nd Nine Months E nded S eptember 30, 2009

Figure 7b. Key Developments – continued Source. Capital IQ

Page 10

K ey Developments
C ompany
S handa Interac tive E ntertainment L td. (Nas daqG S : S NDA)

Headline
S ha nda Intera ctive S ecures $1. 6 B illion F or Acquis itions

Notes
S ha nda Interactive E nterta inment Ltd. pla ns to a cquire more digital enterta inment platforms and ga me content developers to divers ify its revenue s tream. S ha nda s pun off S handa G a mes in S eptember. G race W u, S ha nda's chief financial officer told inves tors in a conference call tha t S handa is keen to us e its $1. 6 billion ca s h pile on more acquis itions . He a dded, “W e will cons ider a cquiring more ga me content developers a nd other digita l enterta inment content players . ” IAC /InterActiveC orp. a nnounced tha t Nick S toumpa s , currently IAC V ice P res ident a nd T reas urer, has been named V ice P res ident, Inves tor R ela tions and T rea s urer. Mr. S toumpas s ucceeds E oin R ya n, the previous V ice P res ident of Inves tor R elations who left IAC in November. As V ice P res ident of Inves tor R elations and T rea s urer, Mr. S toumpas will ma intain his exis ting res pons ibilities a s T rea s urer of IAC a nd will have prima ry res pons ibility for the s tra tegic and tactical elements of IAC 's Inves tor R ela tions program, the goa l of which is to ens ure the ma rketpla ce unders ta nds and fairly values the compa ny. Mr. S toumpa s will continue to report to T om McInerney, C F O of IAC . Lis a J a ffa , Ma na ger of IAC Inves tor R elations , will report to Mr. S toumpa s . F riends ter Inc is likely to be acquired an As ia n buyer by the end of December for at leas t $100 million, a s ource clos e to the s itua tion s ta ted. T he company ha d rejected a $30 million buyout offer from G oogle Inc s ix yea rs a go, media reports s tated. A s ource s tated that F riends ter will be s old to a n As ia n lis ted company for more tha n $100 million. T he s ource a dded tha t the deal will be a nnounced by the end of December. R euters reported tha t s ource denied to be identified a s the informa tion wa s not yet public. In J uly, T echC runch ha d va lued F riends ter a t $210 million. C hief executive of the compa ny, R icha rd K imber s tated that mos t of the s uitors for F riends ter were As ia n buyers . He s a id: "W e ha ve a s hortlis t a t this point tha t we a re negotiating with. " He a dded tha t Morgan S tanley ha s been engaged to ha ndle the deal. T encent Holdings Ltd is known to be a mong the s hort-lis ted bidders . T he s ources s ta ted that F a cebook Inc ha d als o expres s ed interes t but was turned down due to competition a nd intellectual property is s ues . O penwave S ys tems Inc. ha s filed a S helf R egis tration in the amount of $2. 95 million. O pen T ext C orp. , Annual G eneral Meeting, Dec 03, 2009, a t 10: 00 US E a s tern T ime. L oca tion: 275 F ra nk T ompa Drive, W a terloo, N2L 0A1, O ntario, C anada . Agenda : T o receive the financia l s tatements of the C ompany for the yea r ended J une 30, 2009, together with the report of the auditors thereon; to elect directors ; to re-a ppoint auditors a nd a uthorize the directors to fix their remunera tion; a nd to trans a ct s uch other bus ines s a s may properly come before the meeting or a ny a djournment thereof.

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

IAC /InterActiveC orp Appoints Nick S toumpa s a s V ice P res ident, Inves tor R ela tions a nd T rea s urer to R epla ce E oin R yan

F acebook, Inc .; Friends ter, Inc.; Tencent Holdings L td. (S E HK : 700)

F riends ter Ma y R eportedly B e S old T o As ia n B uyer B y December E nd

Openwave S ys tems Inc. (Nas daqG S : OP WV) Open Text C orp. (Nas daqG S : OTE X)

O penwa ve S ys tems Inc. has filed a S helf R egis tra tion in the a mount of $2. 95 million. O pen T ext C orp. , Annua l G enera l Meeting, Dec 03, 2009

OAO R B C Information S ys tems (R TS : R B C I)

O AO R B C Information S ys tems to R es tructure O AO R B C Informa tion S ys tems a nnounced to res tructure its debts . According to the compa ny, a s a res ult two tied dea ls its Debts worth R UB 4. 87 billion, debts of s ubs idia ries of the holding to R B C Informa tion S ys tems will be owed to R B C -T V Mos cow J S C (R UB 0. 7 billion) and P intoleza Holdings L td. (R UB 4. 17 billion). R B C Informa tion S ys tems will get bonds of R B C -T V Mos cow worth R UB 0. 7 billion a nd E urobonds of E . M. I. S . F ina nce B . V . worth R UB 4. 17 billion. After an a greement with creditors is s igned, thes e bonds and E urobonds will go to creditors , while R B C -T V Mos cow will become a new corporative center of R B C . R B C owes R UB 4. 87 billion to banks ; $60 million is the debt of the holding's s ubs idia ries . O penwa ve S ys tems Inc. , Annual G eneral Meeting, Dec 03, 2009 O penwave S ys tems Inc. , Annua l G enera l Meeting, Dec 03, 2009, at 11: 00 US P acific T ime. L ocation: 2100 S ea port B ouleva rd, R edwood C ity, C A 94063, United S ta tes . Agenda: T o elect G erald D. Held a nd David C . Na gel a s directors ; to cons ider the amendment to the a mended and res ta ted 1999 Directors E quity C ompens a tion P la n; to ra tify the s election of K P MG L LP a s independent a uditors for the fis ca l yea r ending J une 30, 2010; and to tra ns a ct s uch other bus ines s as may properly come before the meeting or a ny a djournment thereof. T heS treet. com, Inc. a nnounced tha t its boa rd of directors has declared the C ompa ny's qua rterly ca s h dividend on its common s tock. T he ca s h dividend of $0. 025 per s ha re of common s tock will be pa yable December 31, 2009, to all s ha reholders of record a t the clos e of bus ines s on December 15, 2009.

Openwave S ys tems Inc. (Nas daqG S : OP WV)

TheS treet.com, Inc. (Nas daqG M: TS C M) T hes treet. com, Inc. Decla res Q uarterly C as h Dividend, P a yable on December 31, 2009

Figure 7c. Key Developments – continued Source. Capital IQ

Page 11

VALUATION Online Gaming companies lead market-cap charts: Twelve companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 million, with 38 under US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market cap of approximately US$34.6 billion.

Market C ap (US D m)
Tencent Holdings Ltd. Neteas e.com Inc. S handa Interactive Entertainment Modern Times G roup Mtg A B IA C/InterA ctiveCorp. G ree, Inc. Open Tex t Corp. Perfect W orld Co., Ltd. S ohu.com Inc. Changy ou.com Limited Giant Interactive G roup, Inc. Mix i, Inc. Chines e G amer International V alueClick Inc. K ings of t Co. Ltd. NEOWIZ G ames Corporation United Online Inc. S hutterf ly , Inc. S K Communications Co., Ltd. NetDragon W ebS oft, Inc. XING A G CDC Corp. G amania Digital Entertainment Co., OA O R B C Information S y s tems G igaMedia Ltd. My riad Group A G G ungHo Online Entertainment, Inc. The9 Limited Openw ave S y s tems Inc. A ctoz S of t Co., Ltd. DA DA S pA Fluid Mus ic Canada, Inc. Y D Online Corp. Tree.Com, Inc. NeuLion Incorporated Cy berplex Inc. HanbitS oft, Inc. GameOn Co Ltd. Frogs ter Interactive Pictures A G TheS treet.com, Inc. Eolith Co. Ltd. GeoS entric Oy j PNI Digital Media Inc. S park Netw orks , Inc. G ravity Co., Ltd DigitalTow n, Inc. NeXplore Corporation DX N Holdings B hd Webz en Inc. Ngi G roup Inc. A s s ociated Media Holdings Inc. A s knet A G A Q Interactive, Inc. S ocialw is e, Inc. Northgate Technologies Limited Quepas a Corp. Wiz z ard S of tw are Corporation LookS mart, Ltd. Y nk K orea Inc. A cceleriz e New Media, Inc. Dolphin Digital Media, Inc. Jumbuck Entertainment Limited Ex tens ions , Inc. MOK O.mobi Limited Lingo Media Corporation Magnitude Inf ormation S y s tems Inc. V OIS , Inc. is eemedia Inc. IA S Energy , Inc. S pectrumDNA , Inc. W orlds .com Inc. B right Things plc UOMO Media, Inc DigitalPos t Interactive, Inc. B roadWebA s ia Inc. S NA P Interactive, Inc. CornerWorld Corporation B ey ond Commerce, Inc. B etaw ave Corporation B igs tring Corp. LiveWorld Inc. Unis erve Communications Corp. Wy nds torm Corporation K A B Dis tribution Inc. CLICK ER Inc. The Parent Company China G atew ay Corporation Dibz International, Inc. S NM G lobal Holdings S ocial Media V entures Inc. 0
Figure 8. Market Cap Rankin Source. Capital IQ

34567.1 4818.6 3473.1 3119.2 2507.4 2222.9 2211.3 2157.0 2012.8 1704.5 1628.3 1351.0 1103.5 859.2 796.9 780.8 592.1 404.6 335.1 295.3 257.9 257.5 222.9 222.0 210.4 207.5 197.3 187.8 187.1 151.1 149.0 104.4 88.0 78.8 74.9 74.1 71.6 70.8 70.4 69.8 66.8 65.8 53.8 48.8 40.6 38.3 37.9 36.9 35.6 33.4 32.9 26.5 24.7 23.4 22.2 21.6 20.3 18.3 16.5 15.8 15.4 13.6 13.3 12.5 11.0 10.2 9.9 9.2 7.8 6.8 5.4 5.3 5.2 4.6 4.2 3.3 2.9 2.7 2.5 1.8 1.0 0.9 0.7 0.6 0.5 0.2 0.2 0.0 0.0 0.0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Page 12

TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (vs. 5.7x last week) (Figure 9). Two companies trade above 25x revenue – SpectrumDNA, Inc. (OTCBB:SPXA) at 48.7x, and Bigstring Corp. (OTCBB:BSGC) at 44.4x. The median of 1.6x compares is flat vs. last week. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x.

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

50. 0

48.7 44.4

40. 0

30. 0
24.6 23.9

20. 0
14.815.0 8.1 8.7 10.1

18.2 16.6

10.erage, 5. 3 Av 0 0. 0

5.0 5.1 5.3 5.5 5.7 3.7 4.2 4.5 4.5 2.5 2.5 2.8 2.9 3.2 3.2 0.8 0.9 1.0 1.0 1.1 1.1 1.3 1.3 1.3 1.3 1.3 1.6 1.6 1.7 1.8 1.9 0.0 0.0 0.0 0.1 0.2 0.2 0.2 0.2 0.3 0.4 0.4 0.5 0.5 0.5 0.5 0.6 0.6 0.7 0.7 0.8

7.1 7.2

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 12.7x (vs. 14.7x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 7.2x revenue (vs. 8.5x last week) (Figure 11). Ten of the companies are Canadian (average 3.6x revenue).
Average TEV/LTM Revenue - By Country
16.0 14.0 12.0 10.0 (x) 8.5 7.2 6.6 5.7 5.2 5.0 14.8

(x)

OTCBB

OTCPK

GTSM

NasdaqGM

SEHK

KOSE

HLSE

NasdaqGS

TSE

CM

XTRA

AMEX

OSE

KLSE

TSXV

SWX

ASX

RTS

TSX

OM

BSE

Germany

Hong Kong

Malaysia

China

India 1

Finland

Canada

Australia

Taiwan

# Companies

1 18 3

2

2

4

5 11 3

4

1

2

6

1 14 1

1

1

1

5

1
# Companies

1

2

38

10

3

3

6

10

Switzerland

1

8

Sweden

1

1

1

1

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

Russia 1

United States

Japan

South Korea

Italy

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

Average TEV/LTM Revenue - By Exchange
16.0 14.8 14.0 12.7 12.0 10.2 10.0 8.0 6.0 4.0 2.0 0.0 8.5 8.1 7.1 6.3 6.1 5.2 4.1 3.2 2.6 2.3 1.8 1.6 1.3 0.8 0.6

8.0 6.0 4.0

3.6

3.2 2.3 1.8 0.8 0.7 0.6 0.5 0.0

0.5 0.2

2.0

0.0

0.0

Page 13

TEV/EBITDA (LTM) averages 10.3x: The average multiple for the 36 companies with positive EBITDA (and multiples under 100x) is 10.3x LTM EBITDA (vs. 11.3x last week), led by Tencent Holdings Ltd. (SEHK:700) at 46.7x (Figure 12). Sixteen companies have EBITDA multiples under 7x. The median multiple is 8.4x (vs. 8.6x last week).
T E V/L T M E B IT DA (x)
50. 0 45. 0 40. 0 35. 0 30. 0 25. 0 20. 0 15. 0 10. 0 5. 0 0. 0 0. 4 0. 5 0. 8 1. 0 J umbuck E ntertainment L imited O AO R B C Information S y s tems AQ Interac tive, Inc . P erfec t World C o. , L td. 2. 7 A verage, 10. 3 5. 9 4. 3 4. 5 4. 6 5. 2 5. 4 5. 5 3. 2 4. 0 13. 2 13. 8 11.9 12.5 12. 8 12. 9 10. 5 10. 8 10.8 11.3 17. 4 22. 4 25. 8 26. 4 26. 7 37. 2 46. 7

8. 8 7. 7 8. 0 6. 2 6. 7

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 .

C hines e G amer International

U nis erve C ommunications C orp.
1.0 Australia 2

C hangy ou. c om L imited

C DC C orp.

S K C ommunic ations C o. , Ltd.

T ree. C om, Inc .

Modern T imes G roup Mtg AB

T heS treet. c om, Inc .

S NAP Interac tive, Inc .

U nited O nline Inc .

IAC /InterAc tiveC orp.

O pen T ex t C orp.

NetDragon WebS oft, 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 3.2x. On a geographic basis, the United States has the most companies (38), trading at an average of 6.6x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.5x EBITDA).
Average TEV/LTM EBITDA - By Exchange
35.0 29.8 30.0 25.0 (x) 20.0 15.0 10.0 5.0 GTSM 0.0 SEHK TSXV OM CM KOSE NasdaqGS OSE TSE XTRA
(x)

Average TEV/LTM EBITDA - By Country
20.0 18.0 16.0 14.0 12.0 18.8 16.9 13.5 13.1 12.9 12.5 11.9

21.6 16.9

14.8

13.1 12.9 11.9

8.2

6.2 5.9

4.6 4.5 4.1 NasdaqGM TSX AMEX

3.2 1.0 OTCBB ASX

0.4 RTS

10.0 8.0 6.0 4.0 2.0 0.0

O penwave S y s tems Inc.

11.3 6.6 6.2

Germany

China

Japan

United States

Canada

Taiwan

# Companies

4

3

2

5

6

1

3

14

1

1

4

2

5

18

2

1
# Companies

10

3

10

8

Sweden

1

6

3

1

38

1

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

Russia 1

Hong Kong

South Korea

Italy

T enc ent Holdings L td.
0.4

S park Network s , Inc .

C yberplex Inc.

S ohu. c om Inc .

Y D O nline C orp.

V alueC lic k Inc .

Y nk K orea Inc.

Actoz S oft C o. , L td.

K ings oft C o. L td.

S hutterfly , Inc.

DADA S pA

G ree, Inc .

XING AG

Mix i, Inc .

Page 14

P/E (LTM) averages 21.5x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 21.5x LTM EPS (vs. 20.8x last week), led by HabitSoft, Inc. (KOSE:A047080) with a 71.3x multiple (Figure 15). Thirteen companies have P/E multiples under 10x. The median is 14.3x.

P /E L T M (x)
80.0 71.3 70.0 60.0 60.0 50.0 40.0 30.0 A verage, 21.5 20.0 10.0 0.0 0.0 0.0 G ravity C o., Ltd W ebz en Inc. 1.8 2.1 G iant Interactive G roup, Inc. T he9 Limited 2.3 2.6 2.7 S handa Interactive E ntertainment Ltd. Neteas e.com Inc. P erfect World C o., Ltd. 3.9 5.4 J umbuck E ntertainment Limited DXN H oldings B hd 6.7 7.1 8.3 11.5 12.3 9.3 10.7 14.3 21.8 18.0 16.2 16.8 17.5 37.1 37.6 40.6 48.3 67.6 63.3

33.8 34.0 23.5

G amania Digital E ntertainment C o., Ltd.

G ungH o O nline E ntertainment, Inc.

Modern T imes G roup Mtg AB

NE O W IZ G ames C orporation

C hines e G amer International

C hangy ou.com Limited

G ameO n C o Ltd.

S NAP Interactive, Inc.

O pen T ex t C orp.

T encent H oldings Ltd.

C y berplex Inc.

G igaMedia Ltd.

NetDragon W ebS oft, Inc.

S park Network s , Inc.

IAC /InterActiveC orp.

S ohu.com Inc.

Y D O nline C orp.

G ree, Inc.

XING AG

Mix i, Inc.
Malaysia 1

K ings oft 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 18.0x. On a geographic basis, the United States has the most companies (38), trading at an average of 27.0x earnings (Figure 17). Ten of the companies are Canadian (average 27.5x EPS).
Average P/E - By Exchange
70.0 60.0 50.0 (x) 40.0 30.0 20.0 10.0 OTCPK OTCBB GTSM 0.0 OSE TSE KOSE SEHK XTRA OM AMEX 37.4 37.1 35.8
(x)

Actoz S oft C o., Ltd.

40.0 35.0 30.0 25.0

Average P/E - By Country
37.3

63.3

34.0 27.5 27.0 23.8 21.9 16.8 12.7 5.4 3.9

34.0

30.6 28.7 18.0 16.8 16.2 11.2 6.7 5.4 NasdaqGS TSX KLSE

20.0 15.0

3.9 ASX

10.0

NasdaqGM

1.8 0.0 NYSE

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

# Companies 11

5

1

6

3

3

2

18

1

2

14

4

1

2

1

5
# Companies

6

3

10

38

8

3

1

10

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

Australia 2

H anbitS oft, Inc.

LiveW orld Inc.

Page 15

UPCOMING EVENTS

E arnings C alendar
C ompany
PNI Digital Media Inc. (TSXV:PN)
Figure 18. Earnings Calendar Source. Company reports

Date
14-Dec-09

Time
4:30 p.m. EST

Quarter
Q4/09

C onf C all Details
888-300-8196

Page 16

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 knet AG 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 entures 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 D Online C orp. Y nk K orea Inc. H igh L ow Average Media n C urrenc y US D KR W JPY E UR 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 XT R A :A5A 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 XT R A 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) 15.8 151.1 24.7 26.5 32.9 1.8 2.5 2.7 5.3 4.2 257.5 1, 704.5 0.2 1, 103.5 0.5 2.9 74.1 149.0 36.9 0.0 4.6 38.3 15.4 66.8 13.3 104.4 70.4 222.9 70.8 65.8 1, 628.3 210.4 40.6 2, 222.9 197.3 71.6 2, 507.4 7.8 9.2 13.6 0.6 796.9 11.0 1.0 18.3 10.2 1, 351.0 3, 119.2 12.5 207.5 780.8 295.3 4, 818.6 74.9 37.9 33.4 22.2 2, 211.3 187.1 2, 157.0 53.8 21.6 222.0 3, 473.1 404.6 335.1 3.3 0.0 0.0 23.4 2, 012.8 48.8 6.8 34,567. 1 0.2 187.8 69.8 78.8 0.9 592.1 5.2 859.2 9.9 35.6 20.3 5.4 0.7 257.9 88.0 16.5 C urrent P ric e 0.55 20, 800 40, 550 4 0.76 0.03 0.09 0.05 0.01 0.05 2.43 30.99 0.01 425.50 0.01 0.03 1.17 6.28 0.57 0.00 0.05 1.40 0.27 540.00 0.30 1.80 18.75 47.10 65, 500 0.05 7.19 3.86 1.46 4, 440 154, 000 3, 900 19.00 0.11 0.19 0.32 0.01 5.65 0.96 0.03 1.07 0.02 784,000.00 329.60 0.14 4.84 44,200.00 4.33 37.23 0.70 0.68 24,140.00 30.55 39.22 2.24 43.35 1.71 1.70 1.60 51.64 15.76 9,550.00 0.30 0.00 0.01 0.50 52.34 2.37 0.14 147 0.01 7.48 2.28 7.23 0.04 7.00 0.06 10.03 0.01 3.00 0.38 0.10 0.04 33.40 7,000.00 3,695.00 1 Wk 0. 0% -4.8% 0. 2% -0.6% 8344.4% -6.7% 6. 3% 4. 3% 0. 0% -44.4% 2. 1% -4.6% 350.0% -3.3% -18.8% 0. 0% -4.1% 0. 0% -0.9% 20.0% 0. 0% 0. 0% -10.0% -3.6% 20.0% -10.0% 5. 6% 1. 4% 5. 0% 25.0% 2. 3% -4.0% -2.7% -3.5% 8. 2% 6. 3% -2.3% -7.6% -2.6% -3.0% -50.0% -2.6% -3.0% 0. 0% 2. 9% -4.2% 12.0% 6. 3% 12.5% -0.2% 4. 6% -2.0% -2.6% -12.5% -8.1% 8. 7% -5.3% 3. 0% -5.1% -1.8% 3. 6% 22.3% 0. 0% 3. 6% 9. 9% 26.7% 50.0% -50.0% -37.5% 2. 0% -6.1% -0.7% 0. 0% 2. 9% 0. 0% -0.9% -2.1% 12.1% 0. 0% 2. 9% 0. 0% 6. 4% -0.8% 10.3% -15.6% 0. 0% -60.0% 1. 5% 14.4% 0. 0% 8344.4% -60.0% 95.7% 0. 0% 1 Mth -21.4% 35.1% -11.5% 8.8% 5328. 6% -17.6% 112.5% -31.4% -10.9% 66.7% -4.0% -0.8% 350.0% -5.2% -18.8% -50.0% -14.6% -11.0% -11.0% NM 17.8% 38.6% -32.5% -5.3% -14.3% -2.7% -0.7% 3.5% -10.2% -16.7% 0.8% 1.8% -5.2% -19.0% -26.9% 11.1% -1.4% 5.7% 0.0% -5.9% -99.2% -22.7% 1.1% -3.1% -10.1% 155.6% 11.8% 3.7% 50.0% -0.2% 15.6% -14.4% -8.5% -1.4% -9.3% -9.1% 2.9% 3.0% 8.2% -7.2% -5.0% 21.4% 6.7% 8.4% 2.4% 31.5% 42.9% -33.3% -42.3% -10.7% -5.8% -8.8% -6.7% 6.3% 0.0% -5.8% -8.1% -11.0% -20.0% -17.8% -20.0% -2.4% -15.0% -4.8% -17.4% 11.1% -60.0% 0.6% 0.6% -7.9% 5328. 6% -99.2% 62.1% -5.0% 3 Mth -3.5% 18.9% -27.6% 10.5% 5328. 6% -6.7% 21.4% -76.0% -10.9% -78.3% 4.3% -24.7% -40.0% -4.4% -13.3% -50.0% -10.0% -0.4% -0.9% 20.0% -3.6% -20.0% -40.0% -44.6% 275.0% 47.5% -1.3% -3.7% -34.9% 0.0% -6.7% -20.1% -18.9% 9.4% -35.8% -2.5% 0.1% -7.5% 216.7% -20.0% -99.2% -36.7% -4.0% -38.0% -10.2% 155.6% 45.7% 10.2% 80.0% 7.6% 14.5% -26.4% -15.8% -36.4% 23.6% -13.2% -35.7% 10.2% -17.6% 3.1% 1.8% 21.4% 52.4% 7.7% 21.0% 7.8% -40.0% -52.4% -93.2% -15.3% -17.6% 7.2% -36.4% 14.7% -36.4% -4.3% -6.2% -4.5% -11.1% -5.9% -57.1% -4.4% 138.0% 0.3% -22.4% -16.7% -60.0% 3.6% -21.8% -20.5% 5328. 6% -99.2% 56.8% -6.0% 6 Mth 5. 8% -24.6% -41.7% 30.5% 50566. 7% -3.4% 6. 3% -94.9% -6.5% -83.2% 57.8% -29.4% 350.0% 34.2% 71.1% -57.1% -35.4% 3. 0% 41.3% -88.0% 231.3% -44.0% -50.9% -28.9% 100.0% 153.5% 140.4% -10.8% -39.4% 0. 0% -19.7% -31.2% 27.0% 43.2% -38.3% -17.6% 13.5% -57.3% 111.1% -23.8% -98.6% 2. 7% -5.0% -63.5% -15.1% 130.0% 77.0% 51.5% 104.5% -3.2% 31.0% -16.4% -2.3% -6.7% 17.2% -26.2% -37.6% 8. 9% 12.0% 84.5% 3. 0% 126.7% 62.4% -18.4% 16.2% -18.0% -60.0% -50.0% -25.0% -29.6% -24.4% 5. 8% -62.2% 65.1% -60.0% -35.5% 15.2% -25.8% -20.0% 4. 2% -67.6% -17.5% 240.0% -21.6% -41.5% 11.1% -92.2% -0.3% -24.7% -44.6% 50566. 7% -98.6% 569.1% -6.6% 1 Yr 37.5% 109. 0% 35.2% -16. 5% 25233.3% 64.7% -46. 9% -94. 7% 2.1% -95. 0% 129. 2% NM 350. 0% 393. 6% -90. 7% -93. 6% 239. 1% -8.7% 48.7% -97. 6% 112. 0% -53. 3% -66. 3% -6.1% 471. 4% 718. 2% 309. 4% 210. 9% -48. 0% 66.7% 20.4% -33. 1% 151. 7% NM 57.0% 23.4% 14.9% 270. 0% 322. 2% -27. 3% -99. 4% 110. 0% -4.0% 106. 7% -31. 8% 0.0% 33.8% 119. 7% 743. 8% -22. 6% 355. 7% 47.8% 91.0% 133. 3% -32. 7% -51. 2% -38. 5% 44.6% 307. 3% 157. 7% 15.5% -14. 6% 6.7% 84.3% 104. 4% 93.5% -53. 8% -97. 1% -99. 3% -63. 0% 19.6% -13. 8% -33. 3% 215. 3% -98. 9% -38. 6% -32. 7% 338. 2% 33.3% 14.0% -50. 0% 40.3% 296. 7% 275. 0% -59. 1% -54. 5% -66. 7% 24.6% 11.6% -26. 7% 25233.3% -99. 4% 356.3% 20.0% 52 Week -31.3% -42.2% -51.1% -21.1% 0.0% -50.9% -66.0% -97.4% -50.4% -98.3% -38.0% -35.9% -70.0% -18.0% -95.0% -93.6% -41.2% -23.4% -18.1% -97.6% -46.5% -60.0% -66.3% -53.4% -70.3% -16.3% -12.8% -31.5% -56.9% -16.7% -24.9% -50.1% -44.5% -22.2% -45.0% -41.3% -10.7% -60.4% -29.6% -36.0% -99.4% -40.3% -32.9% -87.6% -40.0% -41.0% -4.6% -3.1% 0.0% -28.0% -1.6% -39.4% -23.2% -46.2% -46.9% -59.7% -59.0% -5.4% -28.4% -14.1% -19.7% -25.1% -5.9% -20.6% -13.1% -25.7% -72.2% -97.1% -99.9% -66.7% -27.6% -21.0% -68.9% -3.7% -99.1% -55.0% -39.0% -44.7% -60.0% -26.0% -94.3% -28.0% -48.3% -35.9% -63.1% -56.5% -92.2% -12.1% -43.5% -57.5% 0.0% -99.9% -44.0% -41.1%

785.8

Figure 19. Price Performance Source. Capital IQ

Page 17

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 knet A G 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 entures 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 D Online C orp. Y nk K orea Inc. High Low Average Median

S ec tor
Direct Marketing G aming 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 G erma ny 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 XT R A 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 XT R A :A5A 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)
15.8 151.1 24.7 26.5 32.9 1.8 2.5 2.7 5.3 4.2 257.5 1,704.5 0.2 1,103.5 0.5 2.9 74.1 149.0 36.9 0.0 4.6 38.3 15.4 66.8 13.3 104.4 70.4 222.9 70.8 65.8 1,628.3 210.4 40.6 2,222.9 197.3 71.6 2,507.4 7.8 9.2 13.6 0.6 796.9 11.0 1.0 18.3 10.2 1,351.0 3,119.2 12.5 207.5 780.8 295.3 4,818.6 74.9 37.9 33.4 22.2 2,211.3 187.1 2,157.0 53.8 21.6 222.0 3,473.1 404.6 335.1 3.3 0.0 0.0 23.4 2,012.8 48.8 6.8 34,567.1 0.2 187.8 69.8 78.8 0.9 592.1 5.2 859.2 9.9 35.6 20.3 5.4 0.7 257.9 88.0 16.5 34,567.1 0.0 785.8 39.5

TE V/L TM R evenue
5.0x 1.0x 0.0x 0.2x 44.4x 1.1x 0.7x 5.5x 0.0x 15.0x 0.2x 1.9x 0.5x 0.8x 0.6x 5.7x 4.5x 18.2x 7.2x 1.3x 14.8x 0.7x 10.1x 1.3x 1.0x 0.6x 5.3x 0.4x 5.1x 8.1x 8.7x 1.8x 16.6x 3.2x 3.7x 1.6x 2.5x 24.6x 0.5x 2.8x 0.4x 0.5x 2.5x 0.0x 1.3x 1.7x 0.5x 1.1x 4.5x 2.9x 0.9x 48.7x 23.9x 0.2x 0.1x 0.2x 0.3x 0.8x 7.1x 1.3x 4.2x 3.2x 1.6x 1.3x 48.7x 0.0x 5.3x 1.6x

TE V/ NTM R evenue
0.7x 4.5x 15.3x 0.4x 0.8x 1.1x 18.1x 0.7x 5.9x 1.2x 0.6x 0.4x 4.3x 7.1x 1.8x 2.8x 2.5x 0.4x 2.4x 2.1x 1.0x 1.2x 2.5x 15.8x 0.2x 0.1x 0.2x 0.9x 1.3x 2.5x 1.4x 18.1x 0.1x 3.2x 1.3x

TE V/L TM E B ITDA
4. 3x 0. 5x 11.3x 8. 8x 25.8x 4. 6x 6. 2x 8. 0x 17.4x 5. 9x 10.5x 1. 0x 12.8x 26.4x 12.9x 13.8x 5. 2x 10.8x 13.2x 0. 8x 22.4x 0. 4x 10.8x 26.7x 3. 2x 6. 7x 4. 5x 46.7x 2. 7x 5. 5x 37.2x 4. 0x 5. 4x 11.9x 7. 7x 12.5x 46.7x 0. 4x 11.4x 8. 4x

TE V/NTM E B ITDA
5.4x 7.0x 24.8x 3.7x 5.8x 3.6x 10.5x 4.4x 1.1x 8.9x 21.8x 12.6x 9.7x 9.0x 4.1x 4.6x 6.7x 5.7x 6.2x 5.7x 30.7x 12.8x 6.4x 3.5x 5.2x 6.9x 6.3x 30.7x 1.1x 8.6x 6.3x

P /L TM E P S
21.8x 11.5x 33.8x 6.7x 5.4x 23.5x 7.1x 1.8x 8.3x 0.0x 37.6x 37.1x 71.3x 10.7x 3.9x 17.5x 63.3x 67.6x 16.8x 40.6x 14.3x 2.6x 48.3x 2.7x 2.3x 18.0x 12.3x 16.2x 60.0x 2.1x 0.0x 34.0x 9.3x 71.3x 0.0x 21.5x 14.3x

P /NTM E P S
93.5x 9.9x 21.1x 7.0x 18.4x 1.1x 7.3x 15.2x 8.2x 21.0x 13.3x 27.8x 2.8x 12.5x 51.2x 15.0x 13.9x 14.0x 1.2x 13.1x 31.5x 12.6x 13.7x 6.5x 14.6x 93.3x 14.1x 40.3x 90.9x 5.3x 16.3x 16.6x 8.9x 93.5x 1.1x 22.2x 14.0x

P /TangB V
2.3x 0.4x 1.7x 10.9x 8.9x 16.2x 2.7x 0.8x 3.0x 7.8x 8.6x 2.8x 0.8x 0.3x 1.8x 0.0x 17.8x 6.1x 2.0x 1.2x 1.3x 0.0x 4.2x 0.4x 0.7x 8.7x 12.8x 20.6x 1.6x 0.7x 10.4x 0.6x 2.6x 1.2x 18.8x 0.4x 2.4x 1.7x 3.6x 22.0x 26.6x 0.1x 0.9x 1.2x 4.6x 62.6x 0.0x 7.3x 2.8x 0.8x 62.6x 0.0x 6.4x 2.4x

Figure 20. Valuation Comparison Source. Capital IQ

Page 18

C omparable C ompany Analys is > Web 2.0
S ummary by C ountry
C ompany Name United S tates C a na da C hina S outh K orea J a pa n T a iwa n Aus tralia G erma ny S witzerla nd Hong K ong F inla nd Ita ly United K ingdom India S weden R us s ia Ma lays ia Norwa y 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 ($m) C hina U nited S ta tes J a pan S weden C anada T a iwa n S outh K orea G ermany Hong K ong Ita ly R us s ia S witzerla nd F inland Malays ia India Aus tralia U nited K ingdom Norway G rand Total 49, 633. 4 5, 811. 3 3, 871. 5 2, 974. 2 2, 488. 2 1, 733. 6 1, 527. 4 317. 0 294. 6 165. 4 160. 9 92. 0 65. 9 39. 8 31. 0 22. 1 6. 0 0. 1 69,234.6 Avg US D Market C ap ($m) C hina S weden J apan T aiwan Hong K ong C anada S outh K orea Ita ly R us s ia G ermany U nited S ta tes S witzerla nd F inland Malays ia India Aus tralia U nited 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 ($m) C hina United S tates S weden C a na da S outh K orea J a pa n T a iwa n Hong K ong Ita ly R us s ia India Ma lays ia G erma ny S witzerla nd Aus tralia F inla nd Norwa y United K ingdom G rand Total 4,152. 4 3,887. 3 1,982. 6 1,015. 0 707. 3 634. 4 385. 8 361. 6 242. 6 156. 2 82. 8 77. 1 68. 7 40. 0 17. 8 5. 5 2. 3 0. 0 13,819.5 US D L TM Total E B ITDA ($m) C hina S weden United S tates C a na da J a pa n S outh K orea T a iwa n Ita ly Hong K ong R us s ia G erma ny Ma lays ia Aus tralia S witzerla nd Norwa y 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 A us tralia T aiwan J apan S weden Mala ys ia Italy R us s ia S outh K orea Hong K ong S witzerla nd C anada G ermany U nited S ta tes India Norway U nited 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 19

Financ ing - L as t Three Months (US $ m)
Fin. Amount (Million) Month Oct-09 C ompany Name DailyMotion P opC ap G ames E ngine Yard HubS pot J ive S oftware S pigit Ooyala S c anS c out B ox.net R eality Mobile W aterc ooler Vdopia S ometrics Amie S treet ViVu F izzbac k Technorati Onehub DataS ync DailyB ooth Hot P otato L inkedex S tatus Net IngB oo C hango C redit K arma L is tia Oct-09 Total Nov-09 R oc kYou P laydom S ezmi Millennial Media Zynga E vernote C ubeTree Alice.c om E ventbrite P lac ecas t AppNexus Altruik C redit K arma B lekko P layfire S impleG eo Adfonic S c oopler Nov-09 Total Dec -09 Zoos k gW allet Movik Networks S eekingAlpha S maato J anR ain S toc kTwits Dec -09 Total G rand Total 7.1 US A US A US A Is ra el US A US A US A 15.8 109.0 3. 3 3. 0 23.0 108.5 134.4 30.0 84.5 12. 5 8. 5 7. 0 4. 5 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 UK US A UK US A 1. 5 0. 6 0. 5 2.6 52.3 29.0 67.0 52.5 30. 0 2. 1 4. 7 2. 5 2. 5 5. 0 5. 0 10. 0 8. 0 6. 0 6. 0 43. 0 25. 0 16. 0 15. 0 US A UK C a na da US A C a na da US A 0. 5 0. 4 4.5 40.9 56.5 67.4 2.0 50. 0 US A US A US A 1. 0 0. 9 0. 8 0. 7 1. 0 1. 0 US A US A UK US A US A 1. 3 1. 2 3. 0 2. 6 2. 0 US A US A US A US A 4. 7 4. 0 3. 9 US A US A US A 6. 5 5. 5 C ountry F ra nce US A US A US A US A US A 12. 0 10. 0 10. 0 8. 5 7. 1 Type of financ ing Angel/S eed S eries A 22. 5 19. 0 16. 0 S eries B S eries C 25. 3 S eries D G rand Total 25. 3 22. 5 19. 0 16. 0 12. 0 10. 0 10. 0 8. 5 7. 1 6. 5 5. 5 4. 7 4. 0 3. 9 3. 0 2. 6 2. 0 1. 3 1. 2 1. 0 1. 0 1. 0 0. 9 0. 8 0. 7 0. 5 0. 4 171.3 50. 0 43. 0 25. 0 16. 0 15. 0 10. 0 8. 0 6. 0 6. 0 5. 0 5. 0 4. 7 2. 5 2. 5 2. 1 1. 5 0. 6 0. 5 203.4 30. 0 12. 5 8. 5 7. 0 4. 5 3. 3 3. 0 68.8 443.4

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

Page 20

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

HQ
US A

Webs ite
www. gwallet. com

Des cription
gW a llet provides bra nds , publis hers and s ocial media pla tforms with a virtual currency technology for s ocial network s . T he gW allet monetization platform conta ins three components including Alternative O nline P ayment, V irtual C urrency a nd Aggregation of V irtua l P roducts . T he platform is a comprehens ive s ys tem tha t has been optimized for F a cebook, O penS ocial platforms (MyS pa ce, Hi5, T a gged, etc), virtual worlds or webs ites utiliz ing virtual offer-bas ed currency. J anR ain, Inc. provides Internet identity s olutions and s ervices for bus ines s es and cons umers . It offers OpenID, an open s ource s oftware as a s ervice technology that allows cons umers to us e a s ingle login acros s multiple W ebs ites and regis ter on new s ites with a portable online identity. Its products include R P X , a n enterpris e-clas s hos ted s olution that helps in accepting and verifying us ers ' third party a ccounts , s uch a s G oogle, Y ahoo, F acebook, and L iveID; O P X that enables to is s ue a nd manage O penIDs , and build communities with cus tomers in their own brand; and myOpenID that provides O penID for individuals in the market. T he company has s trategic partners hips with Micros oft, Y ahoo! , AOL , MyS pace, P laxo, and G oogle. J anR ain, Inc. was founded in 2005 and is bas ed in P ortland, Oregon. L ala is a hub for online mus ic dis covery and purchas ing. Us ers ca n lis ten for free mus ic, adding tracks to their playlis t as they s urf. members who downloa d a plugin can turn L a la into an online mus ic locker that s yncs their des ktop mus ic libra ries to their L a la account. L ong uploads a ren’t neces s ary. If L ala already has the s ong in their library, they s imply unlock the file to you online. Movik Network s is headquartered near B os ton, MA and has a n R & D group in B anga lore, India . T he company is focus ed on delivering purpos e-built s olutions that bring content and application awa renes s to the edge of the mobile network. S eeking Alpha, L td. provides s tock market opinion and a nalys is information from blogs , money ma nagers , and inves tment news letters . T he company offers daily s umma ry of market and s tock related s tories , conference call tra ns cripts , new IP O filings , and hous ing ma rket roundup. It als o provides articles from contributors for s tock res earch. T he company s erves money managers , res earch a nalys ts , inves tment bankers , a nd individual inves tors . S eeking Alpha, L td. was founded in 2004 and is ba s ed in New Y ork, New Y ork. S maato Inc. , a mobile advertis ing technology company, provides an open mobile advertis ing platform for publis hers , application developers , a dvertis ement networks , and mobile operators . It offers S maato O pen Mobile Advertis ing, a n advertis ement exchange platform that brings international campaigns from various advertis ement networks to the publis hers and developers inventory, as well as enables the delivery of targeted advertis ing to mobile phones on mobile W ebs ites /widgets within applications a nd in mobile games . T he company’s platform a ls o a llows mobile carriers to a dvertis ement-enable their s ervices and provides cus tomer relations hips . It has a s trategic partners hip with MocoS pace. S maato Inc. was founded in 2005 and is bas ed in R edwood S hores , C alifornia with a loca tion in Hamburg, G erma ny. S tockT wits L L C operates as an online community that provides information about inves tments and s tocks . It provides us ers to give an opinion about a s pecific s tock s ymbol through a tweet. T he company was incorporated in 2008 and is bas ed in Oak land, C alifornia. Zoos k, Inc. operates as an online s ocial dating network. T he company was founded in 2007 and is bas ed in S an F rancis co, C alifornia.

J anR ain

US A

www. janrain. com

L ala

US A

www. lala. com

Movik Networks S eekingAlpha

US A Is rael

www. movik. net www. s eekingalpha .com

S maato

US A

www. s ma ato. com

S tockTwits Zoos k

US A US A

www. s tocktwits . com www. zoos k . com

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

Page 21

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

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