Emily Mendell, NVCA, 610-565-3904, emendell@nvca.

org Matthew Toole, Thomson Financial, 646-822-7560, matthew.toole@thomson.com Sandy Anglin, Thomson Financial, 646-822-7334, sandy.anglin@thomson.com

Venture-Backed IPO Exits Strengthen in 2007
Venture-Backed Acquisition Quarterly Volume Hits 10 Year Low While Average Disclosed Value Hits 7 Year High New York, NY- January 2, 2008 – Thirty-one venture-backed initial public offerings totaling $3.0 billion in proceeds were issued in the fourth quarter of 2007, according to the Exit Poll report by Thomson Financial and the National Venture Capital Association (NVCA). This volume represents the highest quarterly number of IPO’s since the third quarter of 2000. For the year, 86 venture-backed companies went public for $10.3 billion, a 51 percent increase in volume over 2006 when 57 companies went public for $5.1 billion. In contrast, the venture-backed M&A market had only 46 deals in the fourth quarter, 23 of which had a combined disclosed value totaling $6.7 billion, the lowest number of total M&A exits since 1Q 1998 when there were 44 M&A exits. For the year, there were 305 venture-backed M&A transactions with a total disclosed value of $25.4 billion, the highest disclosed values since 2000. “This past year was marked by improving quality of both venture-backed IPO’s and M&A transactions,” said Mark Heesen, president of the NVCA. “In the coming year, we would like to uphold that quality while increasing quantity on both exit fronts. An ideal year would see more than one hundred venturebacked IPO’s and 350 or more acquisitions. But we don’t want to sacrifice quality to hit that threshold.”
Venture-Backed Liquidity Events by Year/Quarter, 2001-2007ytd
M&A Deals with Disclosed Values 165 152 123 45 48 47 46 186 46 36 47 39 168 49 39 42 25 155 *Total Disclosed M&A Value ($M) 16,798.9 7,916.4 7,726.1 3,921.0 4,514.6 4,142.8 2,862.2 15,440.6 4,364.9 4,791.0 4,374.8 2,563.7 16,094.4 5,446.4 3,935.6 3,894.8 3,866.8 17,143.5 *Average M&A Deal Size ($M) 101.8 52.1 62.8 87.1 94.1 88.2 62.2 83.0 94.9 133.1 93.1 65.7 95.8 111.2 100.9 92.7 154.7 110.6 Total Offer Amount ($M) 3,489.9 2,109.1 2,022.7 2,721.1 2,077.8 3,225.6 2,990.4 11,014.9 720.7 714.1 1,458.1 1,568.1 4,461.0 540.8 2,011.0 934.2 1,631.1 5,117.1 Average IPO Offer Amount ($M) 85.1 95.9 69.8 209.3 71.7 134.4 110.8 118.4 72.1 71.4 76.7 92.2 79.7 54.1 105.8 116.8 81.6 89.8

Quarter/Year 2001 2002 2003 2004-1 2004-2 2004-3 2004-4 2004 2005-1 2005-2 2005-3 2005-4 2005 2006-1 2006-2 2006-3 2006-4 2006

Total M&A Deals 353 318 291 80 89 86 84 339 82 80 98 87 347 105 104 93 61 363

**Number of IPO's 41 22 29 13 29 24 27 93 10 10 19 17 56 10 19 8 20 57

2007-1 2007-2 2007-3 2007-4 2007

82 82 95 46 305

29 34 50 23 136

4,540.3 3,876.8 10,300.5 6,675.6 25,393.3

156.6 114.0 206.0 290.2 186.7

18 25 12 31 86

2,190.6 4,146.8 945.2 3,043.8 10,326.3

121.7 165.9 78.8 98.2 120.1

Thomson Financial & National Venture Capital Association *Only accounts for deals with disclosed values **Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile.

IPO Activity Overview The Information Technology (IT) sector saw the majority of venture-backed companies come to the public market with 17 IPO’s raising $1.5 billion during the fourth quarter. This activity represents an increase from the previous quarter when there were nine issues in the IT sector accounting for $684.5 million in proceeds. The largest IPO in the IT sector in the fourth quarter was Longtop Financial Technologies, Ltd.’s $182.6 million issue, managed by Goldman Sachs and Deutsche Bank. Longtop Financial Technologies, Ltd. is a software and solutions developer catering to the IT needs of rapidly developing financial institutions in China. Venture investment in the company totaled $48.2 million from Tiger Global and an undisclosed firm across two rounds. The Life Sciences industry accounted for an additional ten venture-backed IPO’s during the fourth quarter of 2007. The largest issue in this sector was the $98.0 million issue by Nanosphere, Inc., an Illinois based company whose Verigene System automates the analysis and ultra-sensitive detection of nucleic acids and proteins. Venture investors in the company include Allen & Company, Bain Capital, Brookside International Incorporated, Lurie Investment Fund, NGEN Partners LLC, and undisclosed individuals and investors. In total, these firms invested $80.1 million of venture capital in Nanosphere. In full-year 2007, the IT sector accounted for the most venture-backed IPO’s, totaling 47 issues and $6.0 billion in volume. Life Sciences followed with 32 issues and $2.6 billion in proceeds. Venture-Backed IPO Industry Breakdown Q4 2007
*Number of VentureBacked IPO’s in the U.S. 4 2 7 4 17 6 4 10 2 2 4 TOTAL 31 Total VentureBacked Offering Size ($M) 291.2 134.7 836.9 246.8 1,509.7 342.9 320.5 663.4 487.8 383.0 870.8 3043.8

Industry Internet Specific Communications and Media Computer Software and Services Information Technology Semiconductors/Other Elect. TOTAL Medical/Health Biotechnology Life Sciences TOTAL Consumer Related Non HighTechnology Other Products TOTAL

*Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile

The Boston metropolitan region, followed by San Jose and Chicago, had the most venture-backed companies with IPO exits in the fourth quarter. In Boston, there was one IPO apiece in Communications and Media, Computer Software and Services, Semiconductors and Other Electric, and Biotechnology industries. In San Jose, there was one issue each in Computer Software and Services, Biotechnology, and Medical/Health sectors. Chicago, had offerings in Communications and Media, Semiconductors and Other Electric, and Biotechnology. Foreign IPO’s on US exchanges accounted for $933.0 million in proceeds in the fourth quarter, the highest proceeds since 1Q 2004 when two issues, led by the largest venture capital issue ever, Semiconductor Manufacturing International Corporation, raised $1.9 billion. The largest issue by proceeds of the quarter was by Chinese company China Nepstar Chain Drugstore, Ltd., a retail drugstore chain in China, which raised $334.1 million on the NYSE. GS Capital Partners, L.P. was the sole investor in this company. For the full-year 2007, San Jose led the metro regions with 19 issues and $2.0 billion in funds raised by venture-backed companies which went public in 2007. The region accounted for 21.5% of the annual value of funds raised by companies in the US marketplace. Boston followed with 17 issues and $1.3 billion in volume. 4Q 2007 Venture-Backed IPO Metro Region Breakdown
*Number of Venture-Backed IPO's in the U.S. 4 4 3 3 2 2 2 1 1 1 3 5 31

Metro Region Boston San Jose Chicago Twin Cities San Fran/Berkeley Washington Metroplex San Diego Metro Philadelphia Great Lakes Los Angeles Other US Non US TOTAL

*Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile

As of December 31, 2007, 58 percent of the venture-backed companies that went public during 2007 were trading at or above their offering price. Sixty venture-backed companies have filed for an initial public offering with the SEC since 2006 and are currently “in registration.” This marks a decrease from the previous quarter when 72 venture-backed companies were in registration. In addition to the U.S. market activity, ten companies that received US venture financing went public on foreign exchanges in the fourth quarter. Exchanges for these listings includes Bombay, Euronext Brussels, Hong Kong, London AIM, Madrid, National, Singapore, and Taiwan. The largest IPO of the year was MetroPCS Communication Inc’s $1.2 billion issue in April, the third largest issue of all time.

Merger and Acquisition Overview In the fourth quarter of 2007, only 46 venture-backed M&A deals were completed, the lowest level since 1Q 1998, when 44 disclosed deals accounted for $3.1 billion in value. While deal volume was at a nine year low, average disclosed quarterly dollar volume reached $290.2 million, the highest level seen since the year 2000. The Life Sciences sector dominated the venture-backed M&A landscape, with 9 deals and a disclosed total dollar value of approximately $2.5 billion. The Non-Technology industry saw the next highest disclosed dollar volume at $2.2 billion. The Information Technology sector saw the most deals with the least disclosed value, reaching $2.0 billion from 32 total deals. Within this industry the Computer Software and Services sector reached $1.2 billion in disclosed deal value – 59 percent of the overall value within technology businesses. For full-year 2007, Information Technology targets dominated the M&A scene accounting for $13.6 billion in deals. Venture-Backed M&A Industry Breakdown Q4 2007
Number of VentureBacked M&A deals with a disclosed value 1 4 7 12 7 7 3 1 4 23 Total Disclosed VentureBacked Deal Value ($M) 140.0 668.5 1151.0 1,959.5 2491.4 2491.4 1549.8 675.0 2,224.8 6,675.6

Industry Communications and Media Internet Specific Computer Software and Services Semiconductors/Other Elect. Information Technology Life Sciences Computer Hardware TOTAL Medical/Health TOTAL Other Products Industrial/Energy Other TOTAL TOTAL

Number of VentureBacked M&A deals 3 12 13 3 1 32 9 9 3 2 5 46

Source: Thomson Financial & National Venture Capital Association The largest disclosed deal of the quarter was the $1.7 billion acquisition of Reliant Pharmaceuticals, marketer of branded, patent protected, ethical pharmaceutical products, by medical giant GlaxoSmithKline PLC in December. The second largest deal was the $925 million acquisition of women’s television network Oxygen Media LLC by NBC Universal in October. December’s Reliant Pharmaceuticals deal represents the largest deal of the year followed by the $1.4 billion acquisition of Worldspan Technologies by Travelport, Inc., which occurred in the 3rd quarter. Deals bringing in the top returns, those with disclosed values greater than four times the venture investment, accounted for 45 percent of the total compared to 60 percent last quarter. Those deals returning less than the amount invested accounted for 20 percent of the quarter’s total, up from 13 percent of the total last quarter. For the full year 2007, 43 percent of the M&A transactions returned more than four times the venture investment, compared to 36 percent in 2006. Twenty-five percent of the deals in 2007 had transaction values less than the venture investment compared to 2006 when 28 percent of the deals were valued at less than the venture investment.

Analysis of Transaction Values versus Amount Invested
Relationship between transaction value and investment Deals where transaction value is less than total venture investment Deals where transaction value is 1-4x total venture investment Deals where transaction value is 4x-10x total venture investment Deals where transaction value is greater than 10x venture investment Total Disclosed Deals Q307 M&A** 6 13 16 12 47 Q407 M&A** 4 7 2 7 20 2006 M&A** 42 54 30 25 151 2007 M&A** 32 42 28 27 129

Source: Thomson Financial & National Venture Capital Association ** Disclosed deals that do not have a disclosed total investment amount are not included. About Thomson Financial Thomson Financial, with 2006 revenues of US$2 billion, is a provider of information and technology solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation (www.thomson.com), a global leader in providing essential electronic workflow solutions to business and professional customers. With operational headquarters in Stamford, Conn., Thomson provides value-added information, software tools and applications to professionals in the fields of law, tax, accounting, financial services, scientific research and healthcare. The Corporation's common shares are listed on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC). The National Venture Capital Association (NVCA) represents approximately 480 venture capital and private equity firms. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy, and support entrepreneurial activity and innovation. According to a 2007 Global Insight study, venture-backed companies accounted for 10.4 million jobs and $2.3 trillion in revenue in the United States in 2006. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members. For more information about the NVCA, please visit www.nvca.org.

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