New Services Enabling New Revenues

Doug Ortega g g Chief Operating Officer

Agenda
1. Handango Overview 2. 2 S60 Statistics 3. Sales Opportunities
– – – – – Nokia Content Discoverer Handango Commerce Engine Handango Subscription Billing Mobile Advertising - coming soon Handango Mobile Checkout - coming soon g g

Handango by the Numbers…
Millions of unique monthly visitors 500,000+ 500 000+ newsletter subscribers 190,000+ content titles 16,000+ content partners 200+ licensees 200+ countries Dozens of currencies Dozens of languages 9 operating systems 7+ years commercial usage

Handango’s Unique Perspective

Symbian Marketplace Stats y p
• Over 110M phones p y deployed worldwide running Symbian OS (51M last year) , representing the largest open OS volume opportunity for third parties
1

Total Symbian Devices Shipped (108 models) B k D d l ) Break-Down

• Over 80% of those devices run S60 • Four licensees: Nokia Nokia, Samsung, Lenovo and LG

* 67% market-share according to Canalys (15% Microsoft, 9% RIM)

1. Sources: Handango, Symbian, Canalys, Nokia, S60

Handango’s S60 content: Average Selling Price
S60 Versus Symbian Overall (Average Selling Price)
S60 Average Selling Price Symbian Overall Average S mbian O erall A erage Selling Price

Ave erage Selling Price g

$25.00 $20.00 $15.00 $10.00 $5.00 $0.00 $0 00
No v06 Ja n06 Ja n07 ar -0 6 Ju l-0 6 Se p06 ay -0 6 ar -0 7 M

M

M

Month

The S60 average selling price was nearly 28% below the Symbian average selling price in Jan 2006, but the gap is closing in recent months

Strong Symbian Content Growth
16,280

12,201

3,346 Nearly 70% of the catalog is available for Nokia phones

2004

2005

2006

Top 10 Best selling applications for S60 Platform
1. 2. 3. 4. 5. 6. 7. 8. 9. 9 10. SmartMovie (Symbian) ProfiMail (Symbian) ( y ) WorldMate for S60 Handy Safe for S60 Handy Tools Pro for S60 Handy Weather for S60 IM+for all S60 Phones Media Studio 4.0 for Nokia® Advanced Call Manager for Nokia S60 3rd Edition SBSH Papyrus 1.2 - #1 Selling Personal Information Manager!

Handango’s S60 Symbian Catalog: Revenues by Category 2006 and 2007 y g y
Personal Productivity

5% 10%

5%

5% 34%
Entertainment & Games Software Tools Travel & Translation Business & Professional

16% 25%

Education & Reference Other

Over 1/3 of customers are purchasing content for their Nokia phones to be more productive

Best Selling Subscription Products
• Agile Messenger – ICQ,AOL, MSN and Yahoo! • Always-On Mail Internet Edition • Always-On Mail Internet Edition for Nokia 7710 Always On • AskMeNow for S60 – Monthly Subscription • SportSeeker for Symbian

*Top Selling Subscriptions Top focus on Communications

Top 10 Symbian Searched Keywords
1. Sudoko 2. 2 Free 3. GPS 4. ULTRA MP3 5. TV 6. Worldmate 7. Ultramp3 8. Freeware 9. Remote 10. SMS 6 of the top 10 most searched for phrases for Symbian involve multimedia

S60 Application Sales
Overall S60 Revenues
$250,000 $250 000 $200,000 Revenu ues $150,000 $100,000 $50,000 $0
Jan06 Feb06 Mar06 Apr- May06 06 Jun- Jul-06 Aug06 06 Sep06 Oct06 Nov06 Dec06 Jan07

Month M th

Handango’s Top 10 S60 Devices Adding Software Q1 2007
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Nokia Nokia Nokia Nokia Nokia Nokia Nokia Nokia Nokia Nokia N73 (S60 3rd Edition) E61(S60 3rd Edition) N80 (S60 3rd Edition) N70 N93 (S60 3rd Edition) E50 (S60 3rd Edition) E62 (S60 3rd Edition) E70 (S60 3rd Edition) E60 (S60 3rd Edition) 6680

Examples of Handango’s Symbian Sales Channels l h l

Sales Opportunities
• Nokia NCD

Nokia Content Discoverer
• Handango is one of the few content providers • NCD makes it easier for consumers to discover, , y, download, try, and purchase mobile content

(think mobile-content shopping mall)

NCD Client . supported on most S60 and some S40 devices

For more information, visit: www.nokia.com/NCD

Handango’s NCD Performance
Handango’s NCD h seen over a H d ’ has 25% month-over-month growth rate for in both sales and visitors for the last six months

Handango Subscription Services
Handango recognizes the important of recurring billing for ongoing customer services. As such, it has developed tools that empower content partner’s to enable the sale of subscriptions. 1. 2. 3. 4. 5. 6. Subscription initiation & account creation Monthly, quarterly, or annual subscription rebills Unlock key based on a unique subscriber ID Pay-per-use services Subscription cancellation Realtime subscription status checks

For more information, visit: http://developer.handango.com

Subscription Services Growth
• Subscription content is one of the fastest f h f growing segments of Handango’s business • More than 100 subscription services launched
Handango Subscription Service Sales 2005 - 2007

Sales have grown 400% since Q1 of last year Sales in Q1 of 2007 are more than 80 times the size of sales in Q1 of 2005

120% CAGR

Subscription Services: Revenue
Year One Year Two
On avg, 40% will upgrade
Revenue AVG: €28 BEST CASE: €40

One-time Product

€20

€ 20

Sub. Services

€5 €5

€5 €5

€5 €5

The 5 €5 €5 €average subscription lasts 8 €5 €5 €5 months

€5 €5

€5 €5

€5 €5

€5 €5

€5 €5

€5 €5

AVG: €40 BEST CASE: €120

Off Portal: Handango Commerce Engine
The Handango Commerce Engine is a complete e-commerce solution for developers’ Web sites AND (new) WAP sites. Handango will: • Develop, host and maintain the shopping cart • Deliver the software, registration keys and messaging to customers • Provide timely reports as well as expert customer service and developer relations teams • Remit payments on a monthly basis via check or wire transfer

Handango Commerce Engine
The Handango Commerce Engine is a complete e-commerce solution for content partner’s Web site. Handango will: • Develop, host and maintain the shopping cart • Deliver the software, registration keys and messaging to customers • Provide timely reports as well as expert customer service and developer relations teams • Remit payments on a monthly basis via check or wire transfer

For more information, visit: http://developer.handango.com

Content Providers using Handango services

Over 500 Application Content Providers Use Handango’s Extended Services to Drive Incremental Revenue… I lR

Mobile Advertising
Handango is exploring various content business models with embedded advertisements It’s too early to predict what technology or type of ads consumers will allow or accept Early Attributes of Mobile Advertisements: 1) Various Types (see right) 2) Multiple Action-Items • SMS • Email • Click-to-call • WAP fulfillment 3) Campaign averages • Click-through rate: 3-5% pay per click • Ads still CPM, not pay-per-click • CPM Average $35-50

- coming soon

Emerging Types of Mobile Ads 1

Mobile Internet Advertising (WAP)

Video (Streaming/Pre-Roll)

SMS/MMS (Text Messaging)

Downloadable Applications (Smartphone Content)

1. Sources: Handango, Third Screen Media

Mobile Advertising: Mobimate
Information to come tomorrow on this slide slide…

Handango Mobile Checkout
Handango Mobile Checkout, coming soon, will allow customers to purchase content directly from their device
1. 2. Content providers expect this service Over the past two years, Handango’s on-device purchases through Handango I H d h H d InHand have climbed f li b d from less than 5% to almost 20% of total sales On device On-device purchases are the best way to capture customers after trials have expired Customers prefer content on-demand in real-time rather than waiting until eal time athe aiting ntil their at a PC A growing number of consumers don’t synchronize their device with their PC

- coming soon

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For more information, contact Will Pinnell (will@handango.com) or (817) 548-2171