09-04-07 web 2.0 weekly

SOFTWARE & SERVICES 07 APRIL 2009

W E B 2 . O W E E K L Y

DAVID SHORE, CFA, MBA 416.860.6784 [email protected]

Arun Thomas (Associate) 416.860.7666

A QUIET WEEK FOR FINANCING BUT CORPORATE ACTIVITY HEATS UP

SECOND QUARTER FINANCING BEGINS SLOWLY The first week of the second quarter was relatively quiet with only two companies raising a total of $7.5 million. Socialtext and TubeMogul raised $4.5 mill ion and $3 mill ion, respectively. Socialtext – a social networking and collaboration company has raised a total of $18 mill ion since April 2003; while TubeMogul (from the analytics sector) to date has raised $4.5 mill ion.

On the other hand, there were several significant corporate developments announced in the last week. Changyou.com completed its IPO, raising $120 mill ion. This was the first Chinese IPO completed in quite a few months. Additionally, Kaboose announced that it would be sell ing its US assets to Disney and its UK assets to Barclays Private Equity.

C ompany Headline

B arcla ys Priva te E quity L td.; K aboos e Inc. (T S X: K AB ); K aboos e Inc. , UK O perations

B a rc lays P rivate E quity L td. agreed to acquire the UK operations of K a boos e Inc . (T S X: K AB ) for £ 54 million .

Dis ney O nline; K a boos e Inc . (T S X : K AB ); K a boos e Inc ., Internet As s ets

Dis ne y O nline a greed to acqu ire the I nterne t as s ets from K aboos e Inc. (T S X: K A B ) for $18 .4 million .

C hangyou.com L imited (Nas daqG S : C Y OU ) C hangyou.com L imite d has complete d an IP O in the amount of $ 120. 00 million.

This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer.

For further disclosures, please see last page of this report. www.researchcapi ta l .com

Toronto 416.860.7600 Montreal 514 .399.1500 Vancouver 604.662.1800 Calgary 403.265 .7400 Regina 306.566.7550

THE WEB 2 .0 UN IVERSE Ninety-two public Web 2.0 companies identified: Our Web 2.0 universe contains 92 companies, with a combined market cap of $38 bil l ion (Figure 1). The average market cap for the group is ~$415 mill ion (but a median of only $42 mill ion), with average trail ing revenue of $145 mill ion (median $53 mil l ion). The companies are also generally profitable, with a median EBITDA margin of 16.8%. On a valuation basis, the overall average is 3.6x trail ing revenue (median 1.2x) and 9.1x trail ing EBITDA (median 8.0x). Twelve of the companies have more than 500 employees.

C omparable C ompany Analys is > Web 2.0

C ompany Name L TM as of Tic ker E xc hangeTrading

C urrency HQC urrent

P riceUS D Market

C ap ($m)US D L TM Total

R ev ($m)US D L TM Total

E B ITDA ($m)E B ITDA

%TE V/L TM R evenue

TE V/L TM E B ITDA E mployees

Accelerize New Media , Inc. 9/30/2008 AC LZ OT C B B US D United S tates 0.32 8. 6 3.2 (4.7) NM 4.0x - 20 Actoz S oft C o. , Ltd. 9/30/2008 A052790 K OS E K R W S outh K orea 12, 500 84.5 56. 1 10.2 18.3% 1.0x 5. 6x NA AQ Interactive, Inc. 12/31/2008 3838 T S E J P Y J apan 45,900.00 24.8 59. 9 4.8 8.0% - - NA As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S tates 0 0. 1 0.1 (2.3) NM 8.0x - 3 B igs tring C orp. 9/30/2008 B S G C OT C B B US D United S tates 0.02 0. 8 0.1 (2.1) NM 29.8x - 8 B etawave C orporation 12/31/2008 B W AV OT C B B US D United S tates 0 3. 8 7.7 (11.8) NM - - NA B eyond C ommerce, Inc. 9/30/2008 B Y OC OT C B B US D United S tates 1.29 53.3 1.1 (7.7) NM - - 25 B right T hings plc 9/30/2008 AIM:B G T AIM G B P United K ingdom 0 3. 0 0.2 (1.7) NM 12.0x - 9 B roadW ebAs ia Inc. 9/30/2008 B W B A OT C P K US D United S tates 0.45 38.2 0.0 (4.6) NM - - 46 C DC C orp. 9/30/2008 C HIN.A Nas daqG S US D Hong K ong 1 123.0 428.1 18.8 4.4% 0.4x 9. 6x 3,125 C hina G ateway C orporation 9/30/2008 C G W Y OT C B B US D United S tates 0.00 0. 0 6.7 (6.6) -98.9% 0.0x - 37 C hines e G amer Internationa l 9/30/2008 G T S M: 3083 G T S M T W D T aiwan 173 442.7 38. 7 18.3 47.1% 9.9x 21.1x NA C ornerW orld C orporation 1/31/2009 C W R L OT C B B US D United S tates 0.14 6. 6 1.3 NM NM 6.1x - NA C yberplex Inc. 12/31/2008 T S X: C X T S X C AD C anada 1 38.9 46. 1 3.9 8.4% 0.8x 9. 6x NA DADA S pA 9/30/2008 C M:DA C M E UR Ita ly 4.50 97.6 226.8 36.2 16.0% 0.6x 3. 9x 574 DXN Holdings B hd 11/30/2008 DXN K LS E MY R Malays ia 0 20.9 78. 1 10.4 13.3% 0.5x 4. 0x NA Dibz Internationa l, Inc. NA DIB Z OT C P K US D United S tates 0.00 0. 0 NA NM NM - - NA DigitalP os t Interactive, Inc. 9/30/2008 DG LP OT C B B US D United S tates 0 1. 5 0.4 (3.3) NM 6.0x - 11 DigitalT own, Inc. 11/30/2008 DG T W OT C B B US D United S tates 2.50 67.9 NM (2.5) NM - - 3 Dolphin Digital Media , Inc. NA DP DM OT C B B US D United S tates 1 32.6 NA NM NM - - 6 E olith C o. Ltd. 12/31/2007 A041060 K OS E K R W S outh K orea 535.00 19.1 19. 1 (0.1) -0.3% 1.0x - NA E xtens ions , Inc. 9/30/2008 E XT I OT C P K US D United S tates 0 14.2 NM NM NM - - 2 F inancial Media G roup, Inc. 11/30/2008 F NG P OT C B B US D United S tates 0.01 0. 6 6.8 1.2 18.3% - - 22 F luid Mus ic C anada , Inc. 9/30/2008 T S X: F MN T S X C AD United S tates 1 21.2 4.2 (8.6) NM 1.9x - 29 F rogs ter Interactive P ictures AG 6/30/2008 F R G XT R A E UR G ermany 7.01 22.0 5.4 (3.3) -60.6% 4.0x - NA G amania Digital E ntertainment C o. , L td. 12/31/2008 6180 G T S M T W D T aiwan 33 150.9 113.4 16.4 14.5% 1.2x 8. 0x NA G ameOn C o L td. 12/31/2008 3812 T S E J P Y J apan 90,500.00 86.9 74. 1 19.2 25.9% 0.4x 1. 7x NA G eoS entric Oyj 9/30/2008 G E O1V HLS E E UR F inland 0 25.0 5.5 (12.7) NM 3.6x - 92 G iant Interactive G roup, Inc. 12/31/2008 G A NY S E US D C hina 7.26 1,640.8 233.2 144. 4 61.9% - - NA G igaMedia Ltd. 12/31/2008 G IG M Nas daqG S US D T aiwan 6 302.0 190.4 46.0 24.2% 1.2x 4. 9x NA G ravity C o. , Ltd 9/30/2008 G R V Y Nas daqG M US D S outh K orea 0.85 23.6 37. 5 7.2 19.2% - - 636 G ree, Inc. 6/30/2008 T S E :3632 T S E J P Y J apan 5, 760 1,275.9 29. 2 10.5 36.0% 41.6x - NA G ungHo Online E nterta inment, Inc. 12/31/2008 3765 OS E J P Y J apan 126,900.00 144.3 111.6 19.9 17.8% 1.1x 6. 2x NA HanbitS oft, Inc. 12/31/2008 A047080 K OS E K R W S outh K orea 3, 265 54.9 53. 3 (15.0) -28.2% 0.7x - NA IAC /InterActiveC orp. 12/31/2008 IAC I Nas daqG S US D United S tates 16.14 2,274.9 1,445.1 64.6 4.5% 0.4x 8. 1x 3,200 IAS E nergy, Inc. 1/31/2009 IAS C .A OT C B B US D C anada 0 4. 9 0.0 (0.8) NM - - NA IdeaE dge, Inc. 12/31/2008 OT C B B : IDAE OT C B B US D United S tates 0.34 14.4 0.0 (4.6) NM - - NA is eemedia Inc. 12/31/2008 IE E T S XV C AD C anada 0 4. 1 1.2 (4.8) NM 2.1x - NA J umbuck E ntertainment P ty L td. 12/31/2008 AS X: J MB AS X AUD Aus tra lia 0.46 16.2 12. 7 4.7 37.2% 0.9x 2. 5x 72 J umpT V Inc. 6/30/2008 T S X: J T V T S X C AD C anada 1 50.4 11. 5 (1.8) -15.3% 5.4x - NA K aboos e Inc. 12/31/2008 T S X: K AB T S X C AD C anada 0.58 65.4 66. 0 6.6 9.9% 1.1x 11.1x NA K ings oft C o. Ltd. 12/31/2008 3888 S E HK HK D C hina 3 455.8 120.0 46.2 38.5% 3.1x 8. 0x NA L ingo Media C orporation 9/30/2008 T S XV :LM T S XV C AD C anada 0.83 8. 6 3.3 (1.4) -42.5% 2.8x - NA L iveW orld Inc. 12/31/2008 LV W D OT C P K US D United S tates 0 4. 0 11. 8 (0.5) -4.3% 0.3x - NA LookS mart, Ltd. 12/31/2008 LOOK Nas daqG M US D United S tates 1.20 20.5 65. 0 (2.0) -3.1% - - 90 Magnitude Information S ys tems Inc. 9/30/2008 MAG Y OT C B B US D United S tates 0 6. 5 0.1 (3.2) NM - - 13 Mixi, Inc. 12/31/2008 2121 T S E J P Y J apan 389,000.00 592.9 116.5 44.3 38.0% 4.2x 11.1x NA Modern T imes G roup Mtg AB 12/31/2008 MT G B OM S E K S weden 151 1,236.3 1,636.0 261. 6 16.0% 1.1x 6. 6x NA Moggle, Inc 12/31/2008 MMOG OT C B B US D United S tates 2.30 83.5 NM (1.1) NM - - 3 MOK O.mobi L imited 12/31/2008 MK B AS X AUD Aus tra lia 0 5. 9 1.0 (2.1) NM 4.7x - NA NE OW IZ G ames C orporation 12/31/2007 A095660 K OS E K R W S outh K orea 50,000.00 368.7 138.2 37.1 26.9% 2.6x 9. 7x NA NetDragon W ebS oft, Inc. 12/31/2008 777 S E HK HK D C hina 4 293.3 87. 1 39.9 45.7% 1.7x 3. 7x NA Neteas e. com Inc. 12/31/2008 NT E S Nas daqG S US D C hina 28.60 3,519.3 451.0 293. 2 65.0% - - NA NeXplore C orporation 9/30/2007 NXP C OT C P K US D United S tates 1 41.8 NM (4.9) NM - - 19 Ngi G roup Inc. 12/31/2008 2497 T S E J P Y J apan 23,200.00 28.5 97. 6 30.1 30.8% - - NA Northgate T echnologies L imited 12/31/2008 590057 B S E INR India 41 28.6 134.6 23.7 17.6% 0.2x 1. 2x 286 Open T ext C orp. 12/31/2008 OT E X Nas daqG S US D C anada 33.64 1,745.9 769.3 195. 0 25.3% 2.4x 9. 6x 3,400 Openwave S ys tems Inc. 12/31/2008 OP W V Nas daqG S US D United S tates 1 103.3 199.6 (10.2) -5.1% 0.1x - 627 P erfect W orld C o. , Ltd. 12/31/2008 P W R D Nas daqG S US D C hina 16.15 852.0 210.1 113. 7 54.1% - - NA P hotoC hannel Networks Inc. 12/31/2008 T S XV :P N T S XV C AD C anada 2 43.2 16. 1 (0.8) -4.9% 2.6x - NA Quepas a C orp. 12/31/2008 QP S A Nas daqC M US D United S tates 0.99 12.6 0.1 (11.4) NM - - NA OAO R B C Information S ys tems 12/31/2007 R B C I R T S US D R us s ia 0 55.5 142.0 18.6 13.1% 0.0x 0. 1x NA S handa Interactive E nterta inment Ltd. 12/31/2008 S NDA Nas daqG S US D C hina 42.71 2,963.3 521.9 239. 8 46.0% 0.0x 0. 1x NA S hutterfly, Inc. 12/31/2008 S F LY Nas daqG S US D United S tates 10 245.2 213.5 28.4 13.3% 0.7x 5. 5x 514 S K C ommunications C o. , Ltd. 12/31/2007 A066270 K OS E K R W S outh K orea 8,400.00 264.8 159.0 15.0 9.4% 1.7x 17.7x NA S NAP Interactive, Inc. 9/30/2008 S T V I OT C B B US D United S tates 1 8. 1 2.3 0.2 10.1% 3.1x 30.2x 5 S NM G lobal Holdings 9/30/2008 S NMN OT C P K US D United S tates 0.00 0. 0 2.0 (0.7) -34.8% 1.1x - 33 S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D United S tates 1 0. 0 0.1 (0.1) -60.5% 0.0x - NA S ohu.com Inc. 12/31/2008 S OHU Nas daqG S US D C hina 46.23 1,762.1 429.1 180. 5 42.1% 3.4x 8. 0x 3,197 S ites earch C orporation 1/31/2009 S T P C OT C B B US D United S tates 3 28.2 NM (1.1) NM - - 15 S park Networks , Inc. 12/31/2008 LOV AME X US D United S tates 2.25 46.2 57. 3 12.3 21.5% 0.8x 3. 8x 183 S pectrumDNA, Inc. 9/30/2008 S P XA OT C B B US D United S tates 0 7. 3 0.1 (2.7) NM - - 7 T encent Holdings L td. 12/31/2008 700 S E HK HK D C hina 60.30 13,995.5 1,046.1 517. 4 49.5% 14.5x 29.2x 6,194 T he P arent C ompany 8/2/2008 K IDS .Q OT C P K US D United S tates 0 0. 5 112.0 (13.5) -12.0% 0.2x - 347 T he9 L imited 12/31/2008 NC T Y Nas daqG S US D C hina 14.15 379.5 249.8 84.1 33.7% - - NA T heS treet. com, Inc. 12/31/2008 T S C M Nas daqG M US D United S tates 2 60.7 71. 9 7.0 9.7% - - 310 T ota l S port Online AS 3/31/2006 T OS O OT C NO NOK Norway 0.04 0. 2 2.0 (1.0) -50.6% 4.6x - 16 T ree.C om, Inc. 12/31/2008 T R E E Nas daqG M US D United S tates 5 51.1 228.6 (23.9) -10.4% 0.2x - 700 Unis erve C ommunications C orp. 11/30/2008 T S XV :US S T S XV C AD C anada 0.04 0. 8 24. 1 0.1 0.4% 0.1x 29.5x NA United Online Inc. 12/31/2008 UNT D Nas daqG S US D United S tates 5 416.5 669.4 153. 9 23.0% 1.1x 4. 7x 1,469 UOMO Media , Inc 1/31/2009 UOMO OT C B B US D C anada 0.08 6. 9 0.6 (0.5) -78.2% 11.3x - NA V a lueC lick Inc. 12/31/2008 V C LK Nas daqG S US D United S tates 9 798.1 625.8 113. 6 18.2% 1.1x 5. 9x 1,189 V OIS , Inc. 12/31/2008 V OIS OT C B B US D United S tates 0.23 1. 9 0.0 (1.3) NM - - 4 W ebzen Inc. 9/30/2008 W ZE N Nas daqG M US D S outh K orea 2 26.7 21. 6 (6.4) -29.5% - - 330 W izzard S oftware C orporation 9/30/2008 W ZE AME X US D United S tates 0.46 21.7 6.2 (6.5) NM 3.5x - 110 W oozyF ly, Inc. 9/30/2008 W ZY F OT C B B US D United S tates 0 2. 6 0.0 NM NM - - 14 W orlds .com Inc. 9/30/2008 W DDD OT C B B US D United S tates 0.17 8. 9 0.1 NM NM - - 1 W ynds torm C orporation NA W Y ND OT C B B US D United S tates 0 3. 1 NA NM NM - - NA XING AG 12/31/2008 O1B C XT R A E UR G ermany 29.29 200.7 46. 7 15.0 32.0% 3.1x 9. 6x NA Y edangOnline C orp. 12/31/2007 A052770 K OS E K R W S outh K orea 8, 670 104.0 52. 6 11.8 22.4% 2.0x 8. 8x NA Y nk K orea Inc. 12/31/2007 A023770 K OS E K R W S outh K orea 4,385.00 8. 2 14. 9 (1.1) -7.6% 0.6x - NA ZipLocal Inc. 12/31/2008 T S XV :ZIP T S XV C AD C anada 0 1. 0 2.6 (2.8) NM 0.8x - NA

High 13,995.5 1,636.0 517.4 65.0% 41.6x 30.2x 6, 194Low 0. 0 0. 0 -23.9 -98.9% 0.0x 0. 1x 1Average 415.0 144.5 32.1 8.9% 3.6x 9.1x 600Median 41.8 52.9 1. 2 16.8% 1.2x 8. 0x 92

Figure 1. Web 2.0 Universe Summary Source. Capital IQ

CAPITAL MARKETS ACTIV ITY (M&A AND F INANCING) April starts a tad slow: The first week of April saw only 2 financings totall ing $7.5 mill ion ($4.5 mill ion raise by Socialtext and $3 mill ion by TubeMogul). For the month of March, 22 financings were announced (total $130.7 mill ion, average $5.9 mill ion) compared to 25 financings announced in February, totall ing $185.5 mill ion, or $7.4 mill ion on average (Figure 2). The average value for February was above the $6.8 mill ion average for January, with four financings over $15 mill ion in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 mill ion in January.

Financing Activity Last Three Months

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

Socialtext largest deal in April: The first week of April saw two only deals and the greater of the two was the $4.5 mill ion Series D round for SocialText (Figure 3), with TubeMogul closely behind with a $3 mill ion Series A. For additional details, see Figures 24 and 25 (at end of note).

Financing Summary - Last Three Months

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

Video continues to be the most active sector: Activity over the last three months was busiest in the video sector, with 8 companies raising over $63.4 mill ion (Figure 4). Social networking companies have the next highest totals, with 10 companies raising $53 mill ion.

Capital Market Activity by Sector - Last Three Months

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

CAPITAL MARKETS ACTIV ITY (PR ICE PERFORMA NCE) Price Performance: Our Web 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid 2008 until recently when it has moved higher than the NASDAQ index (Figure 11).

Web 2.0 Index Price Performance

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^COMP - Share Pricing Index: Web 2.0 X (Market Cap)

Figure 5. Web 2.0 Price Performance Source. Capital IQ

A positive week: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Beyond Commerce Inc. (BYOC-OTCBB) led the group with a 152.9% return over the past week. GigaMedia (GIGM-NasdaqGS) had the worst return, dropping 5.4% in the week.

1 Week P rice P erformance

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GigaMedia Ltd.

DA DA S pA

Ngi Group Inc .

GameOn Co Ltd.

S park Netw orks , Inc .

Open Tex t Corp.

PhotoChannel Netw orks Inc .

TheS treet.com, Inc .

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Gree, Inc .

Mix i, Inc .

S hutterf ly , Inc .

CDC Corp.

IA C/InterA ctiveCorp.

Giant Interactive Group, Inc .

Frogs ter Interactive Pictures A G

Modern Times Group Mtg A B

Neteas e.com Inc .

The9 L imited

Tree.Com, Inc .

A Q Interactive, Inc .

S ohu.com Inc .

S handa Interactive Entertainment Ltd.

United Online Inc .

V alueClick Inc .

LookS mart, Ltd.

Perfect World Co. , Ltd.

Webz en Inc .

Openw ave S ys tems Inc .

B eyond Commerce, Inc .

Figure 6. 1-Week Price Performance Source. Capital IQ

INDU STRY NEWS (PAR TNER SHIPS , F INANCIAL RESU LTS, NEW PR OD UC TS)

K ey DevelopmentsC ompany Headline Notes

B arc lays P rivate E quity Ltd. ; K aboos e Inc . (TS X:K AB); K abo os e Inc . , UK Operations

B arcl ays P rivate E quity L td. agreed to ac quire the U K operations of K aboose I nc. (T S X : K AB ) for £54 million.

B arclay s P rivate E quity L td. agreed to acqu ire the U K operations of K aboos e Inc . (TS X: K AB ) for £ 54 million on March 31, 2009.

B etawave Co rporation (OT CB B:B WA V) B etawave Corporation R eports Cons olidated E arnings R es ults for the F ull Y ear E nded D ec ember 31, 2008

B etawave Corporation reported cons olidated earnings res ults for the full yea r ended Dec embe r 31, 2008. F or the period, R evenues were $7,701, 599 aga ins t $2, 081,182 a year ago. Net los s was $16,969, 985 or $0. 66 per basic and diluted s hare against net loss of $16,377, 858 or 0. 68 per bas ic and diluted share, a year ago. N et cas h us ed in operating ac tivities was $7,077, 358 aga ins t $13, 550,034 a y ear ago.

B eyond Co mmerc e, Inc . (OT CB B:B YOC)

B eyond Commerce, Inc . announced delay ed annual 10-K filing

On 03/31/2009, B eyond Commerce, I nc . announced that they will be unable to file thei r next 10-K by the deadlin e required by the S E C .

B roadWebAs ia Inc . (OT CPK :B WB A) B roadW ebAs ia I nc. announ ced delayed annual 10-K filing On 04/01/2009, B roadW ebAsia Inc . announc ed that they will be unable to file their next 10-K by the deadline required by the S E C .

C hangyo u.c om L imited (Nas daqG S :C YOU)

Changy ou.c om L imited has c ompleted an IP O in the amount of $120.00 million.

Changy ou.c om L imited has c ompleted an I P O in the amount of $120. 00 million.

Offer D eta ils :S ecurity Ty pe: C ommon S tock (D eposita ry R ec eipts )Offered: 7500000P rice/R ange: 16.00

C hina G ateway Corporatio n (OT CB B:C G W Y)

China G ateway Corporation will Change its T ic ker to CG W Y E from CG W Y

E ffective April 06, 2009, C hina G ateway C orporation will c hange its OT CB B stock tic k er s ymbol to CG W Y E from CG W Y .

DigitalF X International, Inc . (OT CB B:DG F X)

Digita lF X Internationa l I nc. L aunches F 5 Campaign Mail P roduct

Digita lFX Internationa l I nc. announc ed that it has begun s hipping its C ommF 5 S uite product li ne to its independent dis trib utor network. T he F5 e-mark eting tool will enable s mall bus iness es to eas ily c re ate and dis tribute email marketing c ampaigns at an a ffordable price. W ith the declining us age of traditiona l advertis ing c hannels s uch as Y ellow P ages or news papers , busines s es a re c ons tantly searc hing for solutions whic h c an meet the c ha llenges of the internet age. F 5 is suc h an applic ation . B usines s es, internet marketers , non-profit organiz ations and ass ociations of a ll k inds would have to us e a variety of s ervic es and applications to ac complis h what F5 provides in one singl e s olution. A partia l list of F5 func tiona lity inc ludes : Integrated v ideo and audio c reation, playlis ts, pic ture ga lleries , media s torage and media publis hing; Full email c lient with video, audio, and template integration for indiv idua l follow up; C ontac t lis t manager; L ead c apture; Auto-res ponder; Cus tomize d template creation; and E mail delive ry re porting and ana ly tic s .

DigitalP os t Interac tive, Inc . (OT CB B:DG L P )

Digita lP os t Interactive I nc. R eports E arnings R esults for the F ourth Quarter and F ull Y ear E nded Dec ember 31, 2008

Digita lP ost Interactive I nc. reported earning s results for the fourth quarter and full year ended Dec ember 31, 2008. F or the quarter, the company reported net los s was $678,600 a dec reas e of $205, 200 or 23% as c ompared to a net loss of $883,800 for the third quarter of 2008. This was ac hieved by reducing operationa l ex penses by $323, 900 or 40% from the thi rd quarter of 2008.

For the full year, the company reported growth in revenue of $488,900 a 314% inc rease from $118,100 for the s ame period last year. T he growth is la rgely due to the c ompany's s tra tegic marketing pa rtners hip with K iddie K andids, which launc hed in the fourth quarter of 2008. Cas h us ed by operating activities improved by 12% to $1,515 ,700 for the year ended Dec ember 31, 2008, as c ompared to $1,724, 700 c as h used during the same period las t year. N et los s inc reased to $4,017, 200 from a net los s of $2, 544,500 for the s ame period last year.

Dis ney Online; K aboos e Inc . (T S X:K AB); Kaboos e Inc ., Internet A s s ets

Dis ney Online agreed to acquire the Internet as sets from K aboos e I nc. (T S X : K AB ) for $18. 4 million.

Dis ney Online agreed to ac quire the Internet ass ets from K aboose I nc. (T S X : K AB ) for $18.4 million on April 1, 2009. T he as sets wi ll be integrated into Dis ney Online’s extens ive line-up of web s ites.

E A Mythic; G igaMedia Ltd. (Nas daqG S :G IG M)

G igaMedia and E A Mythic to L aunch T a iwan Clos ed B eta for W arhammer Online: Age of R eck oning

G igaMedia L td. and E A My thic announced that the clos ed beta for the highly ac cla imed MMO R P G will begin on April 15th, 2009. As part of the clos ed beta launch, clos ed beta pack s will be ava ilable at major reta ilers. The L imited E dition c losed beta game pac ks , ava ilable at partic ipating 7-E leven(R ) reta ilers in T a iwan, have been sold out. Featuring i nnovative R vR game play and P ublic Ques ts (TM ), players are immers ed in a world of perpetua l conflic t between the armies of O rder and Des truc tio n. Nov ice MM O play ers and veterans a like will appreciate the incredible depth and variety ava ilable in W AR .

E xtens ions , Inc . (OT CP K :E XTI) E xtensions , I nc. announced delayed annual 10 -K filing On 03/31/2009, E xtensions , I nc. announc ed that they will be unab le to file their next 10-K by the deadline required by the S E C .

G igaMedia L td. (Nas daqG S :G IG M) G igaMedia L td. R eports Unaudited Cons olidated E arnings R esults for the F ourth Quarter and Full Y ear E nded D ec ember 31, 2008; Announces I mpairment Charges

G igaMedia L td. reported unaudited cons olidated earnings res ults for the fourth quarter and full year ended D ec ember 31, 2008. F or the quarter, the c ompany's revenues increas ed 1% to $44.6 milli on from $44. 2 million in the s ame period of 2007. Y ear-over-year results reflected c ontinued organic growth i n the c ompany's gaming s oftware bus iness , whic h offset d ecreas ed fourth-quarter contributions from the Asian online games bus ines s. I nc ome from operations decreas ed 16% y ear-over-year to $7. 9 million from $9.4 mil lion in the fo urth quarter of 2007. The year-over-year decreas e in income from operations was la rgely due to a decline in the company 's cons olidated operating margin to 17.7% in the fourth quarter from 21. 3% a y ear ago. Non-G AAP inc ome from operations was $8. 0 million, down 21% year-over-year. T he company reported inc ome from co ntinuing operations before income tax es and minority interes t of $8. 58 million compared to $9.72 million reported a y ear ago. Inc ome from continuing operations was $8. 08 million or $0. 13 per diluted s hare c ompared to $10. 63 million or $0.18 per diluted share reported a year ago. Net income d ecreas ed 15% to $9. 1 million or $0. 15 per diluted s hare from $10. 7 million or $0. 18 per diluted

G igaMedia L td. (Nas daqG S :G IG M) G igaMedia L td., Q4 2008 E arnings Ca lls , Mar-31-2009 G igaMedia L td. , Q4 2008 E arnings Ca lls , Mar-31-2009

G ravity Co ., L td (Nas daqG M: G R VY) G ravity Co. , L td, Annual G enera l M eeting, M ar 31, 2009 G ravity Co. , L td, Annual G enera l Meeting, M ar 31, 2009, a t 10:00 K orea S tandard T ime. L oc ation: Nuritkum S quare B us ines s Tower 15F , 1605 S angam-D ong, Mapo-G u, S eoul 121-270 K orea , S outh K orea . Agenda : To cons ider audit results and b reports for the y ear ended Dec ember 31, 2008; to c ons ider the approval of B alance S heet, Inc ome S tatement, and S tatement of Appropria tion of R eta ined E arnings for the 2008; to appointment of Direc tors ; to c ons ider the approva l of amendment of Artic le of I ncorporation; and to c onsider the approva l of the compens ation ceiling for the D irectors in 2009.

G ravity Co ., L td (Nas daqG M: G R VY) G ravity Co. Ltd. Announc es N on-cons olidated E arnings R es ults for the F isc a l Y ear E nded Dec ember 31, 2008

G ravity Co. L td. announc ed non-c ons olidated earnings res ults for the fis ca l y ear ended Dec ember 31, 2008. F or the year, the c ompany reported R evenue was K R W 41, 983 million ($33,267, 000), representing a 24. 6% i ncreas e from K R W 33, 686 million for 2007. R oya lties and licens ing fees revenues for 2008 were K R W 31,587 million ($25, 029,000), representing a 25.6 % inc rease from K R W 25, 153 million for 2007. This inc reas e was primarily a ttributed to: ( i) inc reased revenues from J apan and (ii) appreciation of Japanes e Y en aga ins t K orean W on in 2008. Also , the increas es in game s ervic es revenue from commerc ia l s ervic e of R equiem in the U .S . and R uss ia and E mil C hronic le Online in T ha iland, T a iwan and H ong K ong have c ontributed to the overa ll increas e in revenues. T he Company recorded a net income of K R W 921 million ($730, 000) for 2008 co mpared with a net los s of K R W 27, 559 million for 2007.

J umpTV Inc . (TS X :J TV) JumpT V I nc . R eports E arnings R esults for the F ourth

Quarter and Full Y ear E nde d D ecember 31, 2008JumpTV I nc. reported earnings results for the fourth qua rter and ful l y ear ended December 31, 2008. F or the quarter, the company reported revenue was $5. 8 million compared to $5.3 million in the s ame period in 2007. T he net loss was $7. 2 million (including $3. 8 million of non-cas h charges ) or $0.13 per s hare, bas ic and diluted as compared to $0. 2 million ( including $0. 6 million of non-cas h charges ) or $0.00 per share, ba s ic and diluted in the same period a year ago.

For the full y ear, the company reported rev enue was $13. 4 million compared to $7.8 mil lion in the prior year. T he net los s was $11.6 million (including $5.5 million of non-cas h charges ) or $0.21 per s hare, bas ic and diluted as compa red to $4. 5 million ( including $2. 6 million of non-cas h charges ) or $0.11 per s hare, bas ic and diluted in the prior y ear.

K abo os e Inc . (T S X:K AB) K a boos e Announces F inancia l R es ults for the F ourth Quarter and Fis ca l Y ear E nded D ecember 31, 2008 ; Announces Impairment Cha rges

K a boose Inc . announced f ina nc ia l res ults for the fourth quarter a nd fis ca l year ended D ecember 31, 2008. F or the qua rter, revenue increas ed 80% to $21. 52 million from $11.97 million in th e s ame quarter la s t year. E B IT DA increased 254% from $1. 46 million in the same quarter last year to $5.17 million, which inc ludes $1. 47 million in foreign exchange ga ins in the fourth quarte r of 2008, compared to a los s of $0.01 mi llion in the s ame quarter of 2007. N et los s was $65. 09 million, or $0. 46 per share, compared to net income of $1.73 million, or $0.02 per s ha re, in the fourth quarter of 2007, whic h inc ludes the write-down of goodwill and long-lived as sets of $65. 54 million des cribed below and amorti zation in the fo urth quarter of 2008 re lated to previous acquis itions of $4.05 million, compared to $2. 00 million in the s ame quarter of 2007.

For the year, revenue increas ed 144% to $81. 94 million from $33.63 million in fis ca l 2007. E B IT DA increased 188% from $4. 21 million la st year to $12.11 million, which includes $1. 42 million in foreign exchange ga ins in 2008, compared to a los s of $0. 30 million in 2007 and net loss wa s $74 36 million or $0 53 per s ha re compa red to net income of $1 70 million or $0 02 per s hare in 2007

K ings oft Co . Ltd. (S E H K:3888) K ings oft C o. L td. , 2008 E arnings C a lls , Apr-01-2009 K ingsoft C o. L td. , 2008 E arnings Ca lls , Apr-01-2009

K ings oft Co . Ltd. (S E H K:3888) K ings oft C o. L td. R eports E arnings R esults for the Y ear 2008 ; to Dec lare D ividend ; P lans to Launch Five N ew G ames

K ingsoft C o. L td. reported earnings results for the y ear 2008. For the yea r, the company reported that the net profit jumped 87% from one year ea rlier to C NY 310 million. The company rea liz ed C NY 820.9 million i n revenue in 2008, up 47% y ear on year. T he online game busines s, which contributed CN Y 553. 7 million to the company , accounted for 67% of the company's tota l revenue. The softwa re busines s rea lized CN Y 261. 2 million in sa les income, up 67% from a year earlier.

The company wi ll is sue a dividend of about HK D 0.15 per s hare.

The company plans to l aunch five new games .

Magnitude Information S ys tems Inc . (OT CB B:MAG Y)

Magnitude I nformation S ys tems I nc. A ccepts the R es ignation of Quentin K elly as a D irector of the B oard

On March 24, 2009, Magnitude Information S ys tems I nc . accepted the res ignation of Quentin K elly as a director of the B oard of D irectors . Mr. K elly res igned becaus e of personal reasons , effectiv e immediately.

Magnitude Information S ys tems Inc . (OT CB B:MAG Y)

Magnitude I nformation S ys tems I nc. a nnounced delayed annua l 10-K filing

On 03/30/2009, Ma gnitude I nformation S y stems Inc . announced tha t they will be unable to file their next 10-K by the deadline required by the S E C .

NeXplo re Corporation (OT CPK :NXP C ) NeX plore Corpora tion Anno unces P ublic B eta Launch of Nex plore Ads V ersion 2.0

NeX plore Corporation announc ed the public beta launch of N eX plore Ads vers ion 2. 0, a full lifecyc le search adv erti sing platform tha t enables mark eters to easily create and manage pa id search ad campai gns that can include a blen d of text ads , branded images , v ideo commerc ia ls and other rich-media ad formats featuring built-in, rea l-time cons umer-interaction capa bilities , including vide o cha t, ca ll sc heduling, email, instant mess aging and more. NeX plore Ads s ea ml ess ly integrates with NeX plore S earch, a vi sua lly engaging W eb 2. 0 search engine optimized for multi-media display and eas y soc ia l sharing. N eX plore S earc h has been in public beta s ince J anuary 2008. I n J anuary 2009 NeX plore S earch had more the 5.5 million unique monthly v is itors .

Open T ext C orp. (Nas daqG S :OT E X) Open T ext J oins C isco Technology Dev eloper P rog ra m Open T ext C orp. has joined the C is co T echnology D eveloper P rogram as part of the program's IP Communications s oluti on ca tegory . In addition, Open T ext F ax S erver ha s succ ess fully completed interoperability tes ting with C isco Unif ied C ommunications Manager 7.0 and Cis co Unity C onnection 7. 0. T he C isco Technology Developer P rogram unites Cis co with third-party developers of hardware and so ftware to deliver tes ted interoperable s olutio ns to joint customers. Members of the program s hare C isco's s trong commitment to cus tomer s erv ice and satisfac tion and a re required to undergo interoperability tes ting bas ed on criteria set forth by C isco. W ith C i sco T echnol ogy Developer P rogram member offerings s uch as Open Tex t Fax S erv er, versions 9. 3 and 9. 4, cus tomers can more quickly deploy a broad range of C isco Compatible bus iness a pp lications that ca n enha nce the capabilities, performance, and management of their C is co network .

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

Openwave S y stems Inc . I ntroduces N ew Accelerator S ervic e to Help Operators Improve the Mo bile I nternet E xperience

Openwave S y stems Inc . a nnounced Openwave(R ) Accel erator, the lates t serv ice enabler for Openwa ve(R ) Integra , a next genera tion mobile internet s ervice management pla tform. Openwave Acc elerator, whic h compliments ex isting optimization functions within core I ntegra , increas es da ta transfer rates over wireless data networks while decreas ing bandwidth cons umption. T he result is an optimiz ed network : fas ter brows ing s peeds for the subs criber at a lower tota l cos t for the operator. Accelerator is part of Openwave's Mobile Internet va lue-added S erv ices tha t are ava ilable for the I ntegra Mobi le I nternet S erv ice P latform. I ntegra 's plug-in framework means that a ll data tra ffic routed through Integra can benefit from A ccelerator. Ope nwave Accelera tor reduces s ervice latency and the v olume of da ta going over the a ir to the mobile device by applying enha nced content compress ion techniques (image and javas cript in particular) and content caching to speed up a ccess and content delivery without a ffecting the v isua l quality . T hese multiple acceleration techniques employ ed by O penwave Accelerato r optimiz e the number of transactions neces sary to deliver content and the volume of data per trans a ction with the res ult that the re

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

Openwave S howcas es Latest S olutions a t CT IA W ireless 2009

Openwave S y stems Inc . a nnounced that the c ompany will showca s e its la test mobile internet, mess aging and locati on s oftware applications and infrastructure at CT IA W ireles s 2009 in Las V egas , N evada , April 1-3, 2009. Openwave is helping operators deliver an internet experience to their mobile subs cribers that a re tantamount to the P C experience. Openwa ve complete mobi le internet, mes saging and location s olutions a re helpi ng operators with everything from prov iding a better understanding of their subs criber's behaviors , whic h can trans late into more cus tomer va lue through the delivery of more relevant serv ices and increased serv ice us age-to providing new way s for an operator to maximize bandwidth cons umption and lower tota l cos t of ownership for their mobile internet infra structure.

S NAP Interac tive, Inc . (OT CB B:S TVI) S NAP I nteractive Inc . R eports C onsolidated E arnings R es ults for the F ourth Quarter E nded December 31, 2008

S NAP I nteractive I nc . reported cons olidated earning s res ults for the fourth quarter ended D ecember 31, 2008. R evenue increas ed from $389,181 for th e fourth quarter 2007 to $1,087, 144 for the fourth quarter 2008, a 179% increase.

R evenue increased from $424,564 for the full year ended D ecember 31, 2007 to $3, 011, 627 for the full year ended D ecember 31, 2008, a 609% inc reas e. The increas e in revenue was primarily due to the growth of our applications a nd the inc reased usage in 2008 c ompared to the same time period in 2007. Net Income increased to $796, 960 for the year from a los s of $914, 997 for the y ear 2007, an inc rease of $1,711, 957. E B I TD A for the year wa s $946, 510. On an E B I T DA basis , the company earned $0. 09 per s ha re for the fis ca l year ended December 31, 2008. I nco me from operations for the yea r was $933, 879 compared to loss from operations of $916, 313 in 2007. I ncome before provis ion for income taxes for the yea r was $937, 060 compared to loss before provis ion for income taxes of $913,622 for the s ame period a year ago. Net Income per diluted s hare for the y ear was $0. 07 c ompared to $0. 09 per diluted s hare for the sa me perio d a year ago.

S NAP Interac tive, Inc . (OT CB B:S TVI) S NAP I nteractive Inc . R eports R evenue R es ults for the Fourth Q uarter E nded D ecember 31, 2008

S NAP I nteractive I nc . reported revenue results for the fourth qua rter ended December 31, 200 8. For the fou rth quarter revenue was $1,087, 144, as compared to $871, 324 in third quarter of 2008 a 25% increas e.

S ohu.c om Inc . (Nas daqG S : S OH U) S ohu.com I nc . Announces Management Changes S ohu.com I nc. announced that C harles Z hang, W a ng T ao, H e J ie, Chen D ewen and H ong X iaojian are appointed as board cha irman, chief executive officer, chief fin ancia l off ic er, chief operating off icer, as well as chief tec hnology officer.

T heS treet.c om, Inc . (Nas daqG M:T S CM) TheS treet.com I nc. to Cut about 6% of its W orkforc e TheS treet. com Inc . a nnounced it will cut about 6% of its work force.

T heS treet.c om, Inc . (Nas daqG M:T S CM) TheS treet.com I nc. Announ ces R esignation of S tev en E lk es as Chief R evenue Officer

E ffectiv e March 30, 2009, S teven E lkes and T heS treet. com I nc . ended Mr. E lk e's engagement as Chief R evenue Officer of the company.

W izz ard S oftware Co rporation (A ME X: WZ E )

W izz a rd S oftware C orporati on, Q4 2008 E arnings C a lls , Apr-01-2009

W izza rd S oftware C orporation, Q4 2008 E arnings Ca l ls , Apr-01-2009

W ooz yFly, Inc . (OTC BB :WZYF ) W oozy Fly , Inc . announced dela y ed annual 10-K filing On 04/01/2009, Wo ozyF ly, Inc . announced that they will be unable to file their nex t 10-K by the deadline required by the S E C .

Figure 7. Key Developments Source. Capital IQ

V A LU A TI ON MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 bil l ion in market capitalization (Figure 8). Sixty-five of the 90 companies have market caps under US$100 mill ion, with 30 under $10 mill ion. Online gaming companies dominate the top of the list with four of the top five by market cap.

Market C ap (US D m)

0.00.00.00.00.10.20.50.60.80.81.01.51.92.63.03.13.84.04.14.95.96.56.66.97.38.18.28.68.68.912.614.214.416.219.120.520.921.221.722.023.624.825.026.728.228.528.632.638.238.941.843.246.250.451.153.354.955.560.765.467.983.584.586.997.6103.3104.0123.0144.3150.9

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S NM Global HoldingsDibz International, Inc .

S oc ia l Media V enures , Inc .China Gatew ay Corporation

A s s ociated Media Holdings Inc .Total S port Online A SThe Parent Company

Financial Media Group, Inc .B igs tring Corp.

Unis erve Communications Corp.ZipLocal Inc .

Digita lPos t Interactive, Inc .V OIS , Inc .

Wooz yFly , Inc .B right Things plc

Wynds torm CorporationB etaw ave Corporation

LiveWorld Inc .is eemedia Inc .

IA S Energy , Inc .MOK O.mobi L imited

Magnitude Information S ys temsCornerWorld Corporation

UOMO Media , IncS pectrumDNA , Inc .

S NA P Interactive, Inc .Y nk K orea Inc .

A cceleriz e New Media , Inc .L ingo Media Corporation

Worlds .com Inc .Quepas a Corp.

Ex tens ions , Inc .IdeaEdge, Inc .

J umbuck Enterta inment Pty Ltd.Eolith Co. Ltd.

LookS mart, Ltd.DXN Holdings B hd

Fluid Mus ic Canada, Inc .Wiz z ard S of tw are Corporation

Frogs ter Interactive Pictures A GGrav ity Co. , Ltd

A Q Interactive, Inc .GeoS entric Oy j

Webz en Inc .S ites earch Corporation

Ngi Group Inc .Northgate Technologies L imited

Dolphin Digita l Media , Inc .B roadWebA s ia Inc .

Cyberplex Inc .NeXplore Corporation

PhotoChannel Netw orks Inc .S park Netw orks , Inc .

J umpTV Inc .Tree.Com, Inc .

B eyond Commerce, Inc .HanbitS of t, Inc .

OA O R B C Information S ys temsTheS treet.com, Inc .

K aboos e Inc .Digita lTow n, Inc .

Moggle, IncA ctoz S oft Co. , Ltd.

GameOn Co Ltd.DA DA S pA

Openw ave S ys tems Inc .Y edangOnline Corp.

CDC Corp.GungHo Online Enterta inment, Inc .Gamania Digita l Enterta inment Co. ,

XING A GS hutterf ly , Inc .

S K Communications Co. , Ltd.NetDragon WebS oft, Inc .

GigaMedia Ltd.NEOWIZ Games Corporation

The9 L imitedUnited Online Inc .

Chines e Gamer InternationalK ings of t Co. Ltd.

Mix i, Inc .V alueClick Inc .

Perfect World Co. , Ltd.Modern Times Group Mtg A B

Gree, Inc .Giant Interactive Group, Inc .

Open Tex t Corp.S ohu.com Inc .

IA C/InterA ctiveCorp.S handa Interactive Enterta inment

Neteas e.com Inc .Tencent Holdings Ltd.

Figure 8. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 3.6x: The overall average TEV/Revenue (LTM) multiple for our group is 3.6x – down from from 4.7x last week (Figure 9). However, this is skewed by Gree (3633-TSE) at 41.6x and Bigstring (BSGC-OTCBB) at 29.8x. The median is only 1.2x. Note that we exclude multiples greater than 50x. Thirty-two companies have multiples under 1.5x.

T E V/LT M R evenue (x)

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TEV/Revenue (LTM) by country/exchange: We 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 (22), trading at an average multiple of 8.6x (up slightly from 8.4x last week). On a geographic basis, the United States has the most companies (41), trading at an average of 3.4x revenue (down from 5.5x last week) (Figure 11). Eleven of the companies are Canadian (average 3.0x revenue).

Average TEV/LTM Revenue - By Exchange

0.20.50.61.11.11.11.41.71.92.22.32.83.53.6

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(x)

# Companies

Average TEV/LTM Revenue - By Country

0.5 0.40.61.11.42.83.0

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# Companies

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

TEV/EBITDA (LTM) averages 9.1x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 9.1x LTM EBITDA (slightly down from 9.2x last week), led by SNAP Interactive’s (STVI-OTCBB) 30.2x multiple (Figure 12). Sixteen of the companies have EBITDA multiples under 7x. The median multiple is 8.0x (vs. 6.6x last week).

T E V/L T M E B IT DA (x)

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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 (22), trading at an average multiple of 30.2x. On a geographic basis, the United States has the most companies (41), trading at an average of 9.7x EBITDA (Figure 14). Ten of the companies are Canadian (average 14.9x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.11.22.53.83.94.06.26.36.46.69.610.310.4

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# Companies

Average TEV/LTM EBITDA - By Country

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

P/E (LTM) averages 16.0x: The average multiple for the 31 companies with positive earnings (and multiples under 100x) is 16.0x LTM EPS (unchanged from 16x last week), led by TheStreet.com’s (TSCM-NASDAQ) 64.1x multiple (Figure 15). Sixteen of the companies have P/E multiples under 10x. The median is just 10.4x.

P /E L T M (x)

1.1 1.5 1.6 1.9 2.3 2.5 3.3 3.5 4.0 5.7 7.4 8.2 8.5 9.1 9.6 9.7 11.1 11.4 11.6 11.915.5 17.0

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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 (22), trading at an average multiple of 23.8x. On a geographic basis, the United States has the most companies (41), trading at an average of 32.5x earnings (Figure 17). Eleven of the companies are Canadian (average 22.0x EPS).

Average P/E - By Exchange

3.54.05.77.48.211.115.115.615.6

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Average P/E - By Country

3.54.05.7

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# Companies

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

UPCO MING EVENTS Upc o ming E ventsEvent Date L ocatio n Webs ite

M esh 2009 April 7-8 T oronto www.mes hconference. c om

Figure 18. Upcoming Events Source. Company reports

E arnings CalendarC ompany D ate & T ime Qu arter C onf C all D etails

T ree. Com, Inc . (N a sdaqG M :T R E E ) F riday, M a y 01, 2009 11:00 AM (E DT ) Q 1 2009 877-407-0782

Figure 19. Earnings Calendar Source. Company reports

C omparable C ompany Analys is > Web 2.0P ric e P erformance

C ompany Name C urrenc y Ticker E xc hange US D Market C ap ($m) C urrent P rice 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Accelerize New Media , Inc. US D AC LZ OT C B B 8.6 0.32 28.0% 3.2% -8.6% -31.9% -55.6% -59.0%Actoz S oft C o. , L td. K R W A052790 K OS E 84.5 12,500.00 12.1% 25.6% 18.5% 46.5% 52.4% -11.3%AQ Interactive, Inc. J P Y 3838 T S E 24.8 45,900.00 14.8% 43.9% 52.5% 42.5% -76.2% -80.5%As s ociated Media Holdings Inc. US D AS MH OT C P K 0.1 0.00 0.0% -72.0% -53.3% -93.6% 27.3% -97.2%B igs tring C orp. US D B S G C OT C B B 0.8 0.02 0.0% 22.0% -11.8% -57.1% -91.4% -93.2%B etawave C orporation US D B W AV OT C B B 3.8 0.13 -13.3% 8.3% -40.9% -48.0% -51.9% -69.0%B eyond C ommerce, Inc. US D B Y OC OT C B B 53.3 1.29 152.9% 158.0% 12.2% -35.5% -35.5% -60.9%B right T hings plc G B P AIM:B G T AIM 3.0 0.02 13.6% -2.0% 30.4% 50.0% -40.0% -64.7%B roadW ebAs ia Inc. US D B W B A OT C P K 38.2 0.45 -11.8% -40.0% -18.2% -69.8% -85.0% -84.5%C DC C orp. US D C HIN.A Nas daqG S 123.0 1.14 5.6% 50.0% -11.6% -15.6% -70.1% -72.9%C hina G ateway C orporation US D C G W Y OT C B B 0.0 0.00 100.0% 100.0% 0.0% -86.7% -96.7% -95.6%C hines e G amer International T W D G T S M:3083 G T S M 442.7 173.00 -5.5% 30.1% 83.1% 160.2% 58.7% -9.7%C ornerW orld C orporation US D C W R L OT C B B 6.6 0.14 -6.7% -65.9% -68.9% -77.0% -88.8% -88.8%C yberplex Inc. C AD T S X:C X T S X 38.9 0.90 2.3% 157.1% 136.8% 87.5% 18.4% -10.0%DADA S pA E UR C M:DA C M 97.6 4.50 -5.2% -7.3% -39.1% -40.6% -65.7% -72.2%DXN Holdings B hd MY R DXN K LS E 20.9 0.32 14.3% -3.0% -8.6% -15.8% -37.3% -42.9%Dibz International, Inc. US D DIB Z OT C P K 0.0 0.00 -90.0% -90.0% -90.0% -98.0% -98.0% -98.0%DigitalP os t Interactive, Inc. US D DG LP OT C B B 1.5 0.02 100.0% 400.0% 0.0% -60.0% -89.5% -92.9%DigitalT own, Inc. US D DG T W OT C B B 67.9 2.50 -16.7% 25.0% -23.1% -41.2% 13.6% -59.0%Dolphin Digita l Media , Inc. US D DP DM OT C B B 32.6 0.67 13.6% 31.4% -16.3% -31.6% NM -40.7%E olith C o. L td. K R W A041060 K OS E 19.1 535.00 1.9% 2.9% -6.1% -7.0% -50.9% -57.9%E xtens ions , Inc. US D E XT I OT C P K 14.2 0.15 -25.0% -25.0% 185.7% 50.0% 0.0% -85.1%F inancial Media G roup, Inc. US D F NG P OT C B B 0.6 0.01 18.8% -62.0% -87.3% -97.3% -95.1% -99.0%F luid Mus ic C anada, Inc. C AD T S X:F MN T S X 21.2 0.50 25.0% 16.3% 35.1% -16.7% NM -75.5%F rogs ter Interactive P ictures AG E UR F R G XT R A 22.0 7.01 6.4% 90.0% 8.0% 59.3% 57.2% -8.4%G amania Digital E nterta inment C o. , L td. T W D 6180 G T S M 150.9 33.00 0.5% 37.8% 51.4% 96.4% 9.3% -10.7%G ameOn C o Ltd. J P Y 3812 T S E 86.9 90,500.00 -3.3% 1.1% -31.4% 41.4% -13.0% -44.6%G eoS entric Oyj E UR G E O1V HLS E 25.0 0.03 0.0% -25.0% -25.0% -25.0% -57.1% -57.1%G iant Interactive G roup, Inc. US D G A NY S E 1,640.8 7.26 6.3% 1.7% 13.6% 27.1% -43.5% -57.8%G igaMedia Ltd. US D G IG M Nas daqG S 302.0 5.59 -5.4% 15.7% -19.3% -16.6% -63.5% -71.9%G ravity C o. , Ltd US D G R V Y Nas daqG M 23.6 0.85 23.2% 32.8% 44.1% 3.7% -35.6% -57.5%G ree, Inc. J P Y T S E :3632 T S E 1,275.9 5,760.00 2.9% 20.5% 7.3% NM NM -8.6%G ungHo Online E nterta inment, Inc. J P Y 3765 OS E 144.3 126,900.00 6.3% 4.4% 28.8% -18.0% -48.8% -70.8%HanbitS oft, Inc. K R W A047080 K OS E 54.9 3,265.00 -4.4% 12.6% -5.9% -3.7% -34.8% -53.4%IAC /InterActiveC orp. US D IAC I Nas daqG S 2,274.9 16.14 5.9% 14.4% -1.3% 9.2% -60.8% -68.0%IAS E nergy, Inc. US D IAS C .A OT C B B 4.9 0.07 55.6% 0.0% 250.0% -50.0% -69.6% -80.0%IdeaE dge, Inc. US D OT C B B : IDAE OT C B B 14.4 0.34 -2.9% -15.0% -57.5% -83.7% -62.2% -88.0%is eemedia Inc. C AD IE E T S XV 4.1 0.10 11.1% 25.0% 33.3% 17.6% -71.0% -77.3%J umbuck E nterta inment P ty Ltd. AUD AS X: J MB AS X 16.2 0.46 -8.0% 2.2% 17.9% -8.0% -23.3% -29.8%J umpT V Inc. C AD T S X:J T V T S X 50.4 0.55 1.9% 44.7% 17.0% 10.0% -14.1% -57.0%K aboos e Inc. C AD T S X:K AB T S X 65.4 0.58 45.0% 52.6% 45.0% -13.4% -58.0% -62.3%K ings oft C o. L td. HK D 3888 S E HK 455.8 3.29 6.8% 37.7% 18.3% 57.4% 27.5% -23.7%Lingo Media C orporation C AD T S XV :LM T S XV 8.6 0.83 18.6% -4.6% -17.0% -51.2% -51.2% -62.3%LiveW orld Inc. US D LV W D OT C P K 4.0 0.13 0.0% 225.0% 333.3% 0.0% -13.3% -82.7%LookS mart, L td. US D LOOK Nas daqG M 20.5 1.20 18.8% 22.4% -31.8% -38.5% -65.7% -75.0%Magnitude Information S ys tems Inc. US D MAG Y OT C B B 6.5 0.02 0.0% -16.7% -40.0% -40.0% -40.0% -50.0%Mixi, Inc. J P Y 2121 T S E 592.9 389,000.00 2.9% 17.9% -35.4% -11.2% -57.0% -63.6%Modern T imes G roup Mtg AB S E K MT G B OM 1,236.3 151.00 11.6% 30.2% -12.5% -22.0% -64.3% -66.8%Moggle, Inc US D MMOG OT C B B 83.5 2.30 15.0% 15.0% 53.3% NM NM 0.0%MOK O.mobi L imited AUD MK B AS X 5.9 0.10 7.7% 96.0% 96.0% 78.2% 263.0% -2.0%NE OW IZ G ames C orporation K R W A095660 K OS E 368.7 50,000.00 13.8% 60.0% 132.6% 155.1% 46.0% 0.0%NetDragon W ebS oft, Inc. HK D 777 S E HK 293.3 4.30 0.0% 51.9% 44.3% -8.5% -58.3% -68.4%Neteas e.com Inc. US D NT E S Nas daqG S 3,519.3 28.60 13.1% 35.9% 42.8% 43.9% 48.3% -0.5%NeXplore C orporation US D NXP C OT C P K 41.8 0.75 25.0% -21.1% -25.0% 36.4% NM -48.3%Ngi G roup Inc. J P Y 2497 T S E 28.5 23,200.00 -4.5% 30.3% -59.2% -67.8% -84.0% -86.1%Northgate T echnologies L imited INR 590057 B S E 28.6 41.10 25.3% 24.2% -41.4% -71.0% -89.9% -91.3%Open T ext C orp. US D OT E X Nas daqG S 1,745.9 33.64 -1.4% 12.1% 6.3% 21.0% 0.4% -13.9%Openwave S ys tems Inc. US D OP W V Nas daqG S 103.3 1.24 37.8% 64.2% 58.0% 36.3% -48.3% -55.7%P erfect W orld C o. , L td. US D P W R D Nas daqG S 852.0 16.15 18.9% 48.7% -13.8% -17.2% -37.4% -51.8%P hotoC hannel Networks Inc. C AD T S XV :P N T S XV 43.2 1.60 0.0% 0.0% 1.3% -20.0% -55.9% -61.4%Quepas a C orp. US D QP S A Nas daqC M 12.6 0.99 3.1% 6.5% -56.4% -63.5% -67.9% -71.4%OAO R B C Information S ys tems US D R B C I R T S 55.5 0.40 -9.1% 33.3% -20.0% -90.6% -95.7% -95.8%S handa Interactive E nterta inment L td. US D S NDA Nas daqG S 2,963.3 42.71 16.0% 36.6% 30.1% 66.3% 56.9% -2.9%S hutterfly, Inc. US D S F LY Nas daqG S 245.2 9.75 4.4% 26.3% 23.1% 33.9% -29.7% -45.7%S K C ommunications C o. , L td. K R W A066270 K OS E 264.8 8,400.00 4.1% 40.0% 46.9% -21.5% -49.4% -57.4%S NAP Interactive, Inc. US D S T V I OT C B B 8.1 0.75 -6.3% -21.1% 15.4% 275.0% 15.4% -30.6%S NM G lobal Holdings US D S NMN OT C P K 0.0 0.00 0.0% 0.0% 150.0% -99.8% -100.0% -100.0%S ocia l Media V enures , Inc. US D S MV I OT C P K 0.0 0.52 -56.7% -13.3% -50.0% -14.8% NM -89.6%S ohu.com Inc. US D S OHU Nas daqG S 1,762.1 46.23 15.3% 5.1% -3.7% -8.2% -6.1% -49.5%S ites earch C orporation US D S T P C OT C B B 28.2 3.50 -30.0% NM NM NM NM -30.0%S park Networks , Inc. US D LOV AME X 46.2 2.25 -2.2% -7.8% -13.5% -37.5% -48.7% -51.6%S pectrumDNA, Inc. US D S P XA OT C B B 7.3 0.15 -21.1% -25.0% 0.0% -25.0% NM -75.0%T encent Holdings L td. HK D 700 S E HK 13,995.5 60.30 8.6% 36.4% 16.0% 18.2% 24.1% -16.3%T he P arent C ompany US D K IDS .Q OT C P K 0.5 0.02 -5.0% 26.7% -62.4% -98.1% -99.4% -99.5%T he9 L imited US D NC T Y Nas daqG S 379.5 14.15 14.4% 49.1% -0.6% -7.2% -24.5% -50.4%T heS treet.com, Inc. US D T S C M Nas daqG M 60.7 1.99 0.0% 8.2% -43.0% -55.1% -77.3% -79.0%T ota l S port Online AS NOK T OS O OT C NO 0.2 0.04 0.0% 0.0% -20.0% -20.0% -33.3% -60.0%T ree.C om, Inc. US D T R E E Nas daqG M 51.1 5.12 14.5% 29.0% 28.0% 152.2% NM -53.9%Unis erve C ommunications C orp. C AD T S XV :US S T S XV 0.8 0.04 -20.0% -20.0% 0.0% -50.0% -88.6% -91.1%United Online Inc. US D UNT D Nas daqG S 416.5 5.07 16.6% 24.9% -15.9% -41.0% -52.8% -59.4%UOMO Media, Inc US D UOMO OT C B B 6.9 0.08 -38.5% 14.3% -33.3% -55.6% -77.1% -90.0%V alueC lick Inc. US D V C LK Nas daqG S 798.1 9.20 17.2% 57.5% 24.0% 22.8% -45.9% -56.2%V OIS , Inc. US D V OIS OT C B B 1.9 0.23 91.7% -69.3% -42.5% -72.9% NM -95.9%W ebzen Inc. US D W ZE N Nas daqG M 26.7 2.25 28.6% 81.5% 125.0% 150.0% -25.5% -49.4%W izzard S oftware C orporation US D W ZE AME X 21.7 0.46 7.0% 4.5% -50.0% -50.5% -79.1% -80.8%W oozyF ly, Inc. US D W ZY F OT C B B 2.6 0.15 0.0% 0.0% NM NM NM -96.3%W orlds .com Inc. US D W DDD OT C B B 8.9 0.17 -5.6% 41.7% -15.0% -43.3% -51.4% -62.2%W ynds torm C orporation US D W Y ND OT C B B 3.1 0.17 41.7% 41.7% 41.7% -32.0% NM -80.0%XING AG E UR O1B C XT R A 200.7 29.29 1.7% 20.0% 2.8% 17.2% -20.8% -37.2%Y edangOnline C orp. K R W A052770 K OS E 104.0 8,670.00 -1.3% 27.9% 37.0% 21.4% -22.2% -30.9%Y nk K orea Inc. K R W A023770 K OS E 8.2 4,385.00 7.3% 27.8% -0.5% -60.1% -72.0% -74.3%ZipLocal Inc. C AD T S XV :ZIP T S XV 1.0 0.02 200.0% -25.0% 50.0% -81.3% -92.3% -92.9%

High 200.0% 400.0% 333.3% 275.0% 263.0% 0.0%Low -90.0% -90.0% -90.0% -99.8% -100.0% -100.0%Average 415.0 10.6% 24.3% 12.4% -7.2% -37.4% -59.6%Median 4.2% 20.0% 0.0% -16.9% -50.2% -61.8%

Figure 20. Price Performance Source. Capital IQ

C omparable C ompany Analys is > Web 2.0Valuation Multiples

C ompany Name S ector C ountryP rimary E xchange Tic ker

US D Market C ap ($m)

TE V/L TM R evenue

TE V/ NTM R evenue

TE V/L TM E B ITDA

TE V/NTM E B ITDA P /L TM E P S P /NTM E P S P /TangB V

Accelerize New Media , Inc. Direct Marketing United S tates OT C B B AC LZ 8. 6 4.0x - - - - - -Actoz S oft C o. , Ltd. G aming S outh K orea K OS E A052790 84. 5 1.0x - 5.6x - 15. 5x - 1.6xAQ Interactive, Inc. G aming J apan T S E 3838 24. 8 - - - - - - 0.4xAs s ociated Media Holdings Inc. Mobile United S tates OT C P K AS MH 0. 1 8.0x - - - - - -B igs tring C orp. Ins tant Mes s aging United S tates OT C B B B S G C 0. 8 29. 8x - - - - - -B etawave C orporation Media United S tates OT C B B B W AV 3. 8 - - - - - - 0.4xB eyond C ommerce, Inc. S ocia l Network ing United S tates OT C B B B Y OC 53. 3 - - - - - - -B right T hings plc S ocia l Network ing United K ingdom AIM AIM:B G T 3. 0 12. 0x - - - - - -B roadW ebAs ia Inc. S ocia l Network ing United S tates OT C P K B W B A 38. 2 - - - - - - -C DC C orp. G aming Hong K ong Nas daqG S C HIN.A 123. 0 0.4x 0.4x 9.6x 7. 8x - 17.5x -C hina G ateway C orporation Mobile United S tates OT C B B C G W Y 0. 0 0.0x - - - - - -C hines e G amer Internationa l G aming T aiwan G T S M G T S M:3083 442. 7 9.9x - 21. 1x - 26. 2x - 8.5xC ornerW orld C orporation C ontent United S tates OT C B B C W R L 6. 6 6.1x - - - - - -C yberplex Inc. Advertis ing C anada T S X T S X:C X 38. 9 0.8x 0.6x 9.6x 6. 4x 8.2x 9. 0x 8.5xDADA S pA S ocia l Network ing Italy C M C M:DA 97. 6 0.6x - 3.9x - 5.7x - -DXN Holdings B hd S ocia l Network ing Malays ia K LS E DXN 20. 9 0.5x - 4.0x - 4.0x - 0.4xDibz Internationa l, Inc. S NS Apps United S tates OT C P K DIB Z 0. 0 - - - - - - -Digita lP os t Interactive, Inc. C ontent United S tates OT C B B DG LP 1. 5 6.0x - - - - - -Digita lT own, Inc. S ocia l Network ing United S tates OT C B B DG T W 67. 9 - - - - - - -Dolphin Digital Media , Inc. S ocia l Network ing United S tates OT C B B DP DM 32. 6 - - - - - - -E olith C o. Ltd. G aming S outh K orea K OS E A041060 19. 1 1.0x - - - - - -E xtens ions , Inc. C ontent United S tates OT C P K E XT I 14. 2 - - - - - - -F inancial Media G roup, Inc. Direct Marketing United S tates OT C B B F NG P 0. 6 - - - - - - -F luid Mus ic C anada, Inc. Media United S tates T S X T S X:F MN 21. 2 1.9x 1.3x - - - - 1.7xF rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 22. 0 4.0x - - - - - 2.0xG amania Digita l E nterta inment C o. , Ltd. G aming T aiwan G T S M 6180 150. 9 1.2x - 8.0x - 19. 3x - 2.1xG ameOn C o Ltd. G aming J apan T S E 3812 86. 9 0.4x - 1.7x - 9.1x - 1.2xG eoS entric Oyj Mobile F inland HLS E G E O1V 25. 0 3.6x - - - - - 5.3xG iant Interactive G roup, Inc. G aming C hina NY S E G A 1, 640. 8 - - - - 1.6x 12.0x 0.3xG igaMedia L td. G aming T aiwan Nas daqG S G IG M 302. 0 1.2x 1.2x 4.9x 5. 0x 9.6x 8. 7x 2.7xG ravity C o. , L td G aming S outh K orea Nas daqG M G R V Y 23. 6 - - - - - - -G ree, Inc. S ocia l Network ing J apan T S E T S E :3632 1, 275. 9 41. 6x - - - - - 20. 2xG ungHo Online E nterta inment, Inc. Media J apan OS E 3765 144. 3 1.1x - 6.2x - - - -HanbitS oft, Inc. G aming S outh K orea K OS E A047080 54. 9 0.7x - - - - - 1.8xIAC /InterActiveC orp. Media United S tates Nas daqG S IAC I 2, 274. 9 0.4x 0.4x 8.1x 3. 1x 17. 0x 27.7x 1.1xIAS E nergy, Inc. V ideo C anada OT C B B IAS C . A 4. 9 - - - - - - -IdeaE dge, Inc. S ocia l Network ing United S tates OT C B B OT C B B : IDAE 14. 4 - - - - - - 10. 6xis eemedia Inc. C ontent C anada T S XV IE E 4. 1 2.1x - - - - - 2.4xJ umbuck E nterta inment P ty Ltd. S ocia l Network ing Aus tralia AS X AS X:J MB 16. 2 0.9x - 2.5x - 7.4x - 1.9xJ umpT V Inc. V ideo C anada T S X T S X:J T V 50. 4 5.4x - - - - - 3.6xK aboos e Inc. C ontent C anada T S X T S X: K AB 65. 4 1.1x 1.0x 11. 1x 6. 2x - - -K ings oft C o. L td. G aming C hina S E HK 3888 455. 8 3.1x - 8.0x - 11. 9x - 2.7xL ingo Media C orporation Learning C anada T S XV T S XV :LM 8. 6 2.8x - - - - - -L iveW orld Inc. S ocia l Network ing United S tates OT C P K LV W D 4. 0 0.3x - - - - - 1.8xLookS mart, Ltd. Direct Marketing United S tates Nas daqG M LOOK 20. 5 - - - - - - 0.7xMagnitude Information S ys tems Inc. S ocia l Network ing United S tates OT C B B MAG Y 6. 5 - - - - - - -Mixi, Inc. S ocia l Network ing J apan T S E 2121 592. 9 4.2x - 11. 1x - 29. 2x - 4.7xModern T imes G roup Mtg AB Media S weden OM MT G B 1, 236. 3 1.1x 1.0x 6.6x 7. 9x 3.5x 7. 9x -Moggle, Inc G aming United S tates OT C B B MMOG 83. 5 - - - - - - -MOK O.mobi L imited S ocia l Network ing Aus tralia AS X MK B 5. 9 4.7x - - - - - 5.1xNE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 368. 7 2.6x - 9.7x - 19. 7x - 11. 6xNetDragon W ebS oft, Inc. G aming C hina S E HK 777 293. 3 1.7x - 3.7x - 9.7x - 1.6xNeteas e.com Inc. G aming C hina Nas daqG S NT E S 3, 519. 3 - - - - 2.3x 14.8x 0.7xNeXplore C orporation C ontent United S tates OT C P K NXP C 41. 8 - - - - - - -Ngi G roup Inc. Media J apan T S E 2497 28. 5 - - - - 8.5x - 0.5xNorthgate T echnologies L imited Direct Marketing India B S E 590057 28. 6 0.2x - 1.2x - 1.9x - -Open T ext C orp. C ollaboration C anada Nas daqG S OT E X 1, 745. 9 2.4x 2.2x 9.6x 8. 4x 35. 7x 13.8x -Openwave S ys tems Inc. Mobile United S tates Nas daqG S OP W V 103. 3 0.1x 0.1x - 1. 7x - 41.3x 1.4xP erfect W orld C o. , L td. G aming C hina Nas daqG S P W R D 852. 0 - - - - 1.5x 7. 9x 0.5xP hotoC hannel Networks Inc. Digita l Imaging C anada T S XV T S XV : P N 43. 2 2.6x 1.8x - 5. 5x - 20.7x 9.8xQuepas a C orp. S ocia l Network ing United S tates Nas daqC M QP S A 12. 6 - - - - - - 9.4xOAO R B C Information S ys tems Media R us s ia R T S R B C I 55. 5 0.0x - 0.1x - - - -S handa Interactive E ntertainment L td. G aming C hina Nas daqG S S NDA 2, 963. 3 0.0x 0.2x 0.1x 0. 6x 2.5x 14.5x 1.1xS hutterfly, Inc. Digita l Imaging United S tates Nas daqG S S F LY 245. 2 0.7x 0.8x 5.5x 5. 0x 55. 1x - 1.4xS K C ommunications C o. , L td. S earch S outh K orea K OS E A066270 264. 8 1.7x - 17. 7x - - - -S NAP Interactive, Inc. Dating United S tates OT C B B S T V I 8. 1 3.1x - 30. 2x - 44. 3x - 5.9xS NM G lobal Holdings Media United S tates OT C P K S NMN 0. 0 1.1x - - - - - -S ocia l Media V enures , Inc. S ocia l Network ing United S tates OT C P K S MV I 0. 0 0.0x - - - - - -S ohu.com Inc. G aming C hina Nas daqG S S OHU 1, 762. 1 3.4x 2.9x 8.0x 6. 7x 11. 4x 11.3x 5.4xS ites earch C orporation S ocia l Network ing United S tates OT C B B S T P C 28. 2 - - - - - - 40. 1xS park Networks , Inc. S ocia l Network ing United S tates AME X LOV 46. 2 0.8x - 3.8x - 11. 1x - -S pectrumDNA, Inc. Media United S tates OT C B B S P XA 7. 3 - - - - - - 7.8xT encent Holdings L td. P ortal C hina S E HK 700 13, 995. 5 14. 5x - 29. 2x - 39. 8x - 16. 3xT he P arent C ompany Media United S tates OT C P K K IDS . Q 0. 5 0.2x - - - - - -T he9 L imited G aming C hina Nas daqG S NC T Y 379. 5 - - - - 1.1x 9. 4x 0.1xT heS treet.com, Inc. Media United S tates Nas daqG M T S C M 60. 7 - - - - 64. 1x - 0.6xT ota l S port Online AS Media Norway OT C NO T OS O 0. 2 4.6x - - - - - -T ree. C om, Inc. P ortal United S tates Nas daqG M T R E E 51. 1 0.2x 0.2x - - - - 0.7xUnis erve C ommunications C orp. S ocia l Network ing C anada T S XV T S XV : US S 0. 8 0.1x - 29. 5x - - - -United Online Inc. Media United S tates Nas daqG S UNT D 416. 5 1.1x 0.7x 4.7x 3. 0x - 7. 0x -UOMO Media , Inc Media C anada OT C B B UOMO 6. 9 11. 3x - - - - - -V alueC lick Inc. Advertis ing United S tates Nas daqG S V C LK 798. 1 1.1x 1.2x 5.9x 5. 1x - 15.5x 7.7xV OIS , Inc. S ocia l Network ing United S tates OT C B B V OIS 1. 9 - - - - - - 4.3xW ebzen Inc. G aming S outh K orea Nas daqG M W ZE N 26. 7 - - - - - - 0.0xW izzard S oftware C orporation P odcas ting United S tates AME X W ZE 21. 7 3.5x - - - - - -W oozyF ly, Inc. S ocia l Network ing United S tates OT C B B W ZY F 2. 6 - - - - - - -W orlds .com Inc. C ontent United S tates OT C B B W DDD 8. 9 - - - - 3.3x - -W ynds torm C orporation C ontent United S tates OT C B B W Y ND 3. 1 - - - - - - -X ING AG S ocia l Network ing G ermany XT R A O1B C 200. 7 3.1x - 9.6x - 20. 8x - 5.4xY edangOnline C orp. G aming S outh K orea K OS E A052770 104. 0 2.0x - 8.8x - 11. 6x - 5.4xY nk K orea Inc. G aming S outh K orea K OS E A023770 8. 2 0.6x - - - - - -ZipLocal Inc. Directory C anada T S XV T S XV :ZIP 1. 0 0.8x - - - - - -

High 13, 995. 5 41. 6x 2.9x 30. 2x 8. 4x 64. 1x 41.3x 40. 1xLow 0. 0 0.0x 0.1x 0.1x 0. 6x 1.1x 7. 0x 0.0xAverage 415.0 3.6x 1.0x 9.1x 5.2x 16.0x 14.9x 4.8xMedian 28. 5 1.2x 0.9x 8.0x 5. 3x 10. 4x 12.9x 2.1x

Figure 21. Valuation Comparison Source. Capital IQ

C omparable C ompany Analys is > Web 2.0S ummary by C ountry

C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

United S tates 41 C hina 25, 861.5 C hina 2,873. 5 United S tates 3,742.2 C hina 1,659.2 S weden 38. 0%

C anada 11 United S tates 4, 511.0 S weden 1,236. 3 C hina 3,348.3 S weden 261.6 G ermany 32. 0%

C hina 9 J apan 2, 153.3 J apan 358. 9 S weden 1,636.0 United S tates 239.7 India 30. 8%

S outh K orea 9 C anada 1, 970.1 T aiwan 298. 5 C anada 940.9 C anada 192.7 F inland 25. 9%

J apan 6 S weden 1, 236.3 C anada 179. 1 S outh K orea 552.3 J apan 128.7 J apan 19. 4%

T aiwan 3 S outh K orea 954.5 Hong K ong 123. 0 J apan 488.9 T aiwan 80.7 C anada 18. 3%

Aus tra lia 2 T aiwan 895.6 G ermany 111. 4 Hong K ong 428.1 S outh K orea 58.7 T aiwan 16. 2%

G ermany 2 G ermany 222.8 United S tates 110. 0 T aiwan 342.5 Ita ly 36.2 Ita ly 13. 3%

Norway 1 Hong K ong 123.0 S outh K orea 106. 1 Ita ly 226.8 India 23.7 Norway 9.7%

Hong K ong 1 Ita ly 97.6 Ita ly 97. 6 R us s ia 142.0 Hong K ong 18.8 S outh K orea 8.4%

F inland 1 R us s ia 55.5 R us s ia 55. 5 India 134.6 R us s ia 18.6 Hong K ong 4.4%

Ita ly 1 India 28.6 India 28. 6 Malays ia 78.1 G ermany 11.7 C hina 2.6%

United K ingdom 1 F inland 25.0 F inland 25. 0 G ermany 52.1 Malays ia 10.4 United S tates -0. 4%

India 1 Aus tra lia 22.1 Malays ia 20. 9 Aus tra lia 13.7 Aus tra lia 2.6 United K ingdom N/A

S weden 1 Malays ia 20.9 Aus tra lia 11. 0 F inland 5.5 Norway -1.0 Aus tra lia N/A

R us s ia 1 United K ingdom 3.0 United K ingdom 3. 0 Norway 2.0 United K ingdom -1.7 R us s ia N/A

Malays ia 1 Norway 0.2 Norway 0. 2 United K ingdom 0.2 F inland -12.7 Malays ia N/A

Grand Total 92 G rand Total 38,180.8 Grand Total 415.0 G rand Total 12,134.6 G rand Total 2,728.0 G rand Total 8.7%

Figure 22. Comparison by Country Source. Capital IQ

Comparable Company Analys is > Web 2.0S ummary by Exc hange

C ompany Na me US D Mar ket C a p ($m) Avg US D Mark et C ap ($m ) US D L T M T otal R ev ($m ) US D L T M Total E B ITDA ($m) E B IT DA %

O T C B B 22 Na sdaqG S 15 ,485 .1 S E HK 4, 914. 9 O M 1 ,636 .0 Nas da qG S 1,52 1.6 O M 3 8.0%

Nas da qG S 13 S E HK 14 ,744 .6 NY S E 1, 640. 8 Nas daqGS 492 .5 S E HK 60 3.5 O S E 3 6.0%

O T C P K 9 T S E 2 ,008 .9 O M 1, 236. 3 S E HK 417 .8 O M 26 1.6 X T R A 3 2.0%

K OS E 7 NY S E 1 ,640 .8 Nas da qG S 1, 191. 2 NY S E 233 .2 NY S E 14 4.4 B S E 3 0.8%

T S E 5 O M 1 ,236 .3 T S E 401. 8 C M 226 .8 T S E 10 8.8 T S XV 2 7.4%

Nas da qG M 5 K O S E 904 .2 G T S M 296. 8 R T S 142 .0 K OS E 5 7.9 HL S E 2 5.9%

T S XV 5 G T S M 593 .6 O S E 144. 3 B S E 134 .6 C M 3 6.2 S E HK 1 8.4%

T S X 4 O T C B B 352 .0 K OS E 129. 2 O S E 111 .6 G T S M 3 4.7 T S X 1 4.0%

S E HK 3 X T R A 222 .8 XT R A 111. 4 Nas daqGM 84 .9 B S E 2 3.7 T S E 1 3.9%

A ME X 2 Na sdaqG M 182 .6 C M 97. 6 K L S E 78 .1 O S E 1 9.9 C M 1 3.3%

XT R A 2 T S X 175 .9 R T S 55. 5 G T S M 76 .1 R T S 1 8.6 K O S E 1 2.8%

A S X 2 O S E 144 .3 T S X 44. 0 T S E 75 .5 XT R A 1 1.7 O T C NO 9 .7%

G T S M 2 O T C P K 98 .7 Nas da qG M 36. 5 K O S E 70 .5 K LS E 1 0.4 O T C P K 7 .8%

O T C NO 1 C M 97 .6 A ME X 34. 0 T S X 32 .0 A ME X 5.8 Na sdaqG S 2 .3%

HLS E 1 A ME X 67 .9 B S E 28. 6 AM E X 31 .7 A S X 2.6 O T C B B 1 .8%

NY S E 1 T S XV 57 .7 HLS E 25. 0 XT R A 26 .0 T S X 0.1 Na sdaqC M -4 .9%

C M 1 R T S 55 .5 K LS E 20. 9 O T C P K 21 .0 O T C NO -1.0 Na sdaqG M -5 .3%

B S E 1 B S E 28 .6 O T C B B 16. 0 T S X V 9 .4 A IM -1.7 G T S M -6 .7%

Nas da qC M 1 HL S E 25 .0 Nas da qC M 12. 6 AS X 6 .9 T S X V -9.6 NY S E N/A

O S E 1 A S X 22 .1 T S XV 11. 5 HLS E 5 .5 Nas da qC M -1 1.4 A ME X N/A

A IM 1 K LS E 20 .9 A S X 11. 0 O T C NO 2 .0 HLS E -1 2.7 A IM N/A

O M 1 Na sdaqC M 12 .6 O T C P K 11. 0 O T C B B 1 .8 Nas da qG M -1 8.1 A S X N/A

R T S 1 A IM 3 .0 A IM 3. 0 AI M 0 .2 O T C P K -2 6.5 R T S N/A

K LS E 1 O T C NO 0 .2 O T C NO 0. 2 Nas daqC M 0 .1 O T C B B -5 2.4 K LS E N/A

G rand Total 92 G r and T ota l 38 ,180.8 G ra nd Total 415. 0 G rand T otal 12,134 .6 G rand T otal 2,728.0 G ra nd T ota l 8 .7%

Figure 23. Comparison by Exchange Source. Capital IQ

Financing - Last Three Months (US$ m)Month Company Name Country Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E Grand TotalFeb-09 Twitter USA 35.0 35.0

Synthasite South Africa 20.0 20.0Tremor Media USA 18.0 18.0Offerpal Media USA 15.0 15.0Imagini UK 13.5 13.5Emergent Game Technologies USA 12.5 12.5Outbrain Israel 12.0 12.0Tvtrip France 9.0 9.0Tongxue China 6.0 6.0Oodle USA 5.6 5.6TextDigger USA 4.3 4.3OneSpot USA 4.2 4.2Mixpo Canada 4.0 4.0FetchDog USA 4.0 4.0Virtual Fairground Netherlands 4.0 4.07 Billion People USA 3.0 3.0FamilyLink.com USA 2.9 2.9WhistleBox USA 2.3 2.3Mendeley UK 2.0 2.0Outright USA 2.0 2.0Tvinci Israel 1.6 1.6Filtrbox USA 1.4 1.4MMO Life Netherlands 1.3 1.3Cake Financial USA 1.3 1.3fav.or.it UK 0.7 0.7

Feb-09 Total 13.3 24.8 76.4 58.6 12.5 185.5

Mar-09 Vidyo USA 15.0 15.0Buzznet USA 12.5 12.5LendingClub USA 12.0 12.0SendMe Inc. USA 12.0 12.0Auditude USA 10.5 10.5Glam Media USA 10.0 10.0Visible Measures USA 10.0 10.0Greystripe USA 5.5 5.5OMGPOP USA 5.0 5.0Apture USA 4.1 4.1Simulmedia USA 4.0 4.0Tynt Canada 3.9 3.9AnySource Media USA 3.2 3.2Pixazza USA 3.1 3.1Sports Composite DE USA 2.0 2.0Hunch USA 2.0 2.0Bit.ly USA 2.0 2.0AdultSpace USA 1.3 1.3Myngle Netherlands 1.3 1.333Across USA 0.8 0.8Three Melons Argentina 0.6 0.6

Mar-09 Total 1.3 1.3 0.6 32.3 30.3 43.0 12.0 10.0 130.7

Apr-09 Socialtext USA 4.5 4.5

TubeMogul USA 3.0 3.0Apr-09 Total 3.0 4.5 7.5

Figure 24. Financing, Last Three Months Source. Company reports

C ompany Des c riptions - C urrent Month C apital Market A c tivityCompany H Q W ebs ite Des criptio n

S ocialtext Incorporated U nited S tates www. s ocia ltext.com S oci a ltext Inc orporated develops enterpris e s oc ia l s oftware. T he company focus es on offering collaboration pla tform that a llows organizations to collaborate. It offers P eople, which enables users to integrate s oc ia l network ing with enterprise collaboration; W eblog that supports c ollaborative and ongoing conversations among colleagues ; W orks pace, an enterpris e wiki for searching information and people; and S ig nals that amplif ies, clarif ies, and c omplements other collaboration ac tiv ities , as well as prov ides a medium for information s haring. The c ompany a ls o provides D ashboard, which aggregates content from S oc ia ltex t wik i pages , the W eb, and enterprise sy stems; an d S oci a lCa lc s preadsheets that inc lude information from other spreads heets or works pace pages . The company was founded in 2002 and is based in P a lo Alto, C alifornia .

T ubeMogul, Inc . U nited S tates www. tubemogul. com TubeM ogul, I nc. operates as an online v ideo analytics and dis tribution c ompany worldwide. It foc uses on providing v ideo publis hing tools . The c ompany provides a single point for deploy ing uploads to the video s haring s ites , and analytics on who, what, and how v ideos are being viewed. It serves content produc ers, media companies , ad age ncies , digita l consultants, rec ord labe ls, film s tudios , politicians , c onsumer products organiz ations , and corporations. The company was founded in 2006 and is based in B erkeley , California .

Figure 25. Company Descriptions Source. Company reports, Capital IQ, Crunchbase

RELEVANT DISCLOSURES APPLICABLE TO: NONE L IST OF D ISCLOSU RE TERMS: 1. None applicable.

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

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09-04-07 web 2.0 weekly

Economy & Finance