09 05 19 web 2.0 weekly

SOFTWARE & SERVICES 19 MAY 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

AD NETWORK COMPANY CYBERPLEX RAISES C$15 MILLION IN EQUITY FINANCING

CANADA’S CYBERPLEX RAISES MONEY TO FUEL NEXT LEVEL OF GROWTH Last week we saw a number of companies in the media and Web 2.0 sector reporting earnings, but none was more surprising than Cyberplex. This company, operating in the ad network space, continued to surprise investors both on the earnings front and capital market activity. In posting approximately 300% growth in revenues Y/Y (see figure below), the company has demonstrated the merit of its business model and has returned to the equity markets for C$15 mill ion to fuel the next phase of its growth.

Segmented R evenue, by Quarter

0

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30

35

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

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($m)

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(%)

Technology S ervices (LHS )

Web Advertis ing (LHS )

Total revenues - yoy grow th (RHS )

Cyberplex a big boost for financing activity in May: Month-to-date financings in May totalled $84.3 mill ion and benefited from a financing from Cyberplex for $12.9 mil lion. So far, there have been 14 financings in May with seven deals greater than $5 mill ion and only three less than $5 mil lion. Except for Cyberplex, no deals were greater than $10 mil lion, with the capital raise by Imeem and EveryZing closely behind at $8.8 mill ion and $8.3 mill ion, respectively.

Price Performance: The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 24 companies showing positive returns on the week. Ynk Korea, Inc. (A023770-KOSE) led the group with a 30.9% return, while Mixi, Inc. (2121-TSE) had the worst return, dropping 9.2% in the week.

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 Montrea l 514.399 .1500 Vancouver 604 .662 .1800 Calgary 403 .265.7400 Regina 306 .566 .7550

THE WE B 2 . 0 UNI VE RSE

Ninety-three public Web 2.0 companies identified: Our Web 2.0 universe contains 93 companies, with a combined market cap of ~ $46 bill ion (Figure 1). The average market cap for the group is ~$500 mill ion (but a median of only $50.6 mil lion), with average trai ling revenue of $148.5 mill ion (median $55.6 mil lion). The companies are also generally profitable, with a median EBITDA margin of 16.0%. On a valuation basis, the overall average is 5.2x trai ling revenue (median 1.6x) and 9.3x trai ling EBITDA (median 8.7x). Fourteen of the companies have more than 500 employees.

C omparable C ompany Analys is > Web 2.0

C ompany Name L TM as of T icker Exchange

Trading

Currency HQ

Current

Price

USD Market

C ap ($m)

USD LTM Total

R ev ($m)

USD L TM Total

E B ITDA ($m)

EBITDA

%

TEV/LTM

R evenue

TEV/LTM

EB ITDA Employees

Acce le rize New Media, Inc. 3 /31 /2009 AC LZ OTC BB USD United S ta tes 0 .50 13.8 4.1 (4 .4) NM 4.6 x - 11

Actoz S of t C o., L td. 1 2/31 /2008 A052790 KOS E KR W South K orea 14, 400 99.4 75. 7 1 5.1 20 .0% 0.9 x 4.7x NA

AQ Inte ractive , Inc. 1 2/31 /2008 3838 T S E J PY J apan 48 ,000 .00 26.8 61. 8 4 .9 8 .0% - - NA

As socia ted Media Holdings Inc. 6 /30 /2007 AS MH OTC PK USD United S ta tes 0 0 .1 0.1 (2 .3) NM 8.1 x - 3 B igstring Corp. 1 2/31 /2008 BS GC OTC BB USD United S ta tes 0 .02 1 .2 0.1 (2 .1) NM 30.6 x - 4

Be tawave Corpora tion 12/31 /2008 BWAV OTC BB USD United S ta tes 0 3 .2 7.7 (1 1.8) NM - - 45

Be yond Commerce, Inc. 1 2/31 /2008 BYOC OTC BB USD United S ta tes 1 .04 43.0 1.8 (8 .6) NM 25.4 x - 43

B right T hings plc 9 /30 /2008 AIM:BGT AIM GBP United K ingdom 0 5 .6 0.2 (1 .7) NM 22.1 x - 9 B roa dWebAs ia Inc. 9 /30 /2008 BWBA OTC PK USD United S ta tes 0 .30 25.3 0.0 (4 .6) NM - - 46

C DC C orp. 3 /31 /2009 C HIN .A Nasda qGS USD Hong Kong 1 157.3 389 .9 3 0.8 7 .9% 0.4 x 5.5x NA

C ha ngyou. com Limited 3 /31 /2009 C YOU Nasda qGS USD C hina 29 .80 1,5 27.3 222 .5 135.1 60 .7% 6.0 x 9.9x 628

C hina Gatewa y C orpora tion 9 /30 /2008 C GW Y OTC PK USD United S ta tes 0 0 .0 6.7 (6 .6) -9 8.9% 0.0 x - 37 C hine se Gamer In ternational 3 /31 /2009 GT SM:3083 GT SM TWD T aiwan 225 .00 575.6 56. 2 3 1.5 56 .0% 9.1 x 16.2 x NA

C ornerW orld C orporation 1 /31 /2009 CWR L OTC BB USD United S ta tes 0 6 .4 1.3 NM NM 6.0 x - NA

C yberplex Inc. 3 /31 /2009 T S X:C X T S X C AD C ana da 1 .87 86.5 70. 3 7 .3 10 .4% 1.2 x 11.3 x NA

DADA S pA 9 /30 /2008 CM:DA CM EUR Ita ly 6 139.4 231 .1 3 6.9 16 .0% 0.8 x 5.0x 574 DXN Holdings B hd 2 /28 /2009 DXN KL S E MYR Ma la ys ia 0 .44 29.1 78. 7 1 0.8 13 .7% 0.6 x 4.2x NA

Dibz Inte rnational, Inc. NA DIBZ OTC PK USD United S ta tes 0 0 .0 NA NM NM - - NA

DigitalP ost Inte ra ctive , Inc. 1 2/31 /2008 DGLP OTC BB USD United S ta tes 0 .02 1 .1 0.5 (3 .2) NM 5.1 x - 7

D igitalT own, Inc. 2 /28 /2009 DGTW OTC BB USD United S ta tes 3 67.7 NM (3 .0) NM - - 3 Dolphin D igital Me dia, Inc. 1 2/31 /2008 DPDM OTC BB USD United S ta tes 0 .68 33.5 0.9 (3 .0) NM 37.2 x - NA

E olith C o. L td. 1 2/31 /2007 A041060 KOS E KR W South K orea 900 52.4 20. 2 (0 .1) -0 .3% 2.7 x - NA

E xtens ions , Inc. 1 2/31 /2008 E XT I OTC PK USD United S ta tes 0 .15 14.2 NM NM NM - - NA

F inancia l Media G roup, Inc. 2 /28 /2009 FNGP OTC BB USD United S ta tes 0 0 .4 7.2 2 .4 NM - - 22 F luid Mus ic Ca nada, Inc. 1 2/31 /2008 T S X:FMN T S X C AD United S ta tes 0 .45 20.4 4.6 (9 .3) -6 0.6% 1.9 x - NA

F rogs te r Interactive P icture s AG 6 /30 /2008 F RG XT R A EUR Germany 8 24.6 5.5 (3 .3) 16 .6% 4.4 x - NA

Gama nia D igital E ntertainment C o. , L td. 3 /31 /2009 6180 GT SM TWD T aiwan 38 .60 178.2 126 .0 2 0.9 25 .9% 1.2 x 7.4x NA

GameOn C o L td. 1 2/31 /2008 3812 T S E J PY J apan 91, 800 91.0 76. 5 1 9.8 NM 0.4 x 1.7x NA GeoS entric O yj 1 2/31 /2008 GEO1V HLS E EUR F inland 0 .04 48.8 6.0 (1 3.4) 61 .9% 6.9 x - 94

G iant Intera ctive G roup, Inc. 1 2/31 /2008 GA NYS E USD C hina 8 1,8 62.2 233 .6 144.6 24 .2% - - NA

G igaMedia Ltd. 1 2/31 /2008 G IGM Nasda qGS USD T aiwan 6 .38 344.7 190 .4 4 6.0 19 .2% 1.4 x 5.8x NA

G ravity C o., L td 9 /30 /2008 GR VY Nasda qGM USD South K orea 1 27.0 39. 7 7 .6 36 .0% - - 636

G ree, Inc. 6 /30 /2008 T S E : 3632 T S E J PY J apan 5 ,260 .00 1,2 03.8 30. 1 1 0.8 17 .8% 37.3 x - NA GungHo O nline E ntertainment, Inc. 1 2/31 /2008 3765 OS E J PY J apan 142, 600 167.5 115 .3 2 0.6 -2 8.2% 1.3 x 7.1x NA

HanbitS of t, Inc. 1 2/31 /2008 A047080 KOS E KR W South K orea 4 ,855 .00 86.3 56. 4 (1 5.9) 3 .0% 1.2 x - NA

IAC /InterActiveC orp. 3 /31 /2009 IAC I Nasda qGS USD United S ta tes 16 2,3 92.0 1 ,406.4 4 2.6 NM 0.4 x 11.9 x 3 ,200

IAS E nergy, Inc. 1 /31 /2009 IAS C.A OTC BB USD C ana da 0 .28 19.6 0.0 (0 .8) NM - - NA IdeaE dge, Inc. 1 2/31 /2008 OTCBB :IDAE OTC BB USD United S ta tes 1 24.3 0.0 (4 .6) NM - - NA

is eemedia Inc. 1 2/31 /2008 IE E T S XV C AD C ana da 0 .09 4 .0 1.3 (5 .1) 37 .2% 1.8 x - NA

J umbuck E ntertainment P ty Ltd. 1 2/31 /2008 AS X:JMB AS X AUD Aus tra lia 0 15.3 13. 7 5 .1 -6 2.6% 0.8 x 2.1x 72

J umpT V Inc. 1 2/31 /2008 T S X:J T V T S X C AD C ana da 0 .71 69.7 13. 4 (8 .4) 10 .0% 4.0 x - 237 Ka boos e Inc. 1 2/31 /2008 T S X:K AB T S X C AD C ana da 1 72.5 70. 7 7 .0 38 .7% 1.1 x 11.2 x NA

K ingsoft Co. Ltd. 1 2/31 /2008 3888 S E HK HKD C hina 4 .14 576.9 120 .2 4 6.6 NM 4.2 x 10.9 x 2 ,271

Lingo Media Corporation 12/31 /2008 T S XV : LM T S XV C AD C ana da 1 11.1 0.8 (1 .5) -4 .3% 10.9 x - NA

LiveWorld Inc. 1 2/31 /2008 LV WD OTC PK USD United S ta tes 0 .07 2 .2 11. 8 (0 .5) -6 .3% 0.1 x - NA LookSmart, Ltd. 3 /31 /2009 LOOK Nasda qGM USD United S ta tes 1 24.6 60. 7 (3 .8) NM - - 90

Magnitude Information S ys tems Inc. 1 2/31 /2008 MAGY OTC BB USD United S ta tes 0 .01 4 .4 0.1 (3 .0) 38 .0% - - 14

Mixi, Inc. 1 2/31 /2008 2121 T S E J PY J apan 450, 000 708.4 120 .3 4 5.8 15 .3% 5.0 x 13.2 x NA

Mode rn Times G roup Mtg AB 3 /31 /2009 MTG B OM S E K Sweden 237 .50 2,0 20.2 1 ,737.6 266.2 NM 1.5 x 9.7x 2 ,969 Moggle , Inc 12/31 /2008 MMOG OTC BB USD United S ta tes 2 83.5 NM (1 .1) NM - - 3

MOKO.mobi L imited 12/31 /2008 MK B AS X AUD Aus tra lia 0 .08 5 .0 1.1 (2 .3) 1 .9% 3.5 x - NA

Myriad G roup AG 12/31 /2008 MYR N SWX C HF Switzerla nd 5 98.2 40. 0 0 .8 26 .8% 2.8 x - 405

NEOW IZ Games C orpora tion 12/31 /2008 A095660 KOS E KR W South K orea 62 ,400 .00 487.1 200 .8 5 3.9 45 .7% 2.4 x 8.9x NA NetDragon W ebS oft, Inc. 1 2/31 /2008 777 S E HK HKD C hina 6 377.2 87. 3 3 9.9 65 .0% 2.8 x 6.1x 2 ,426

Nete ase.com I nc. 1 2/31 /2008 NT E S Nasda qGS USD C hina 30 .96 3,8 09.7 451 .8 293.7 NM - - NA

NeXplore Corpora tion 9 /30 /2007 NXPC OTC PK USD United S ta tes 1 39.0 NM (4 .9) 30 .8% - - 19

Ngi G roup Inc. 1 2/31 /2008 2497 T S E J PY J apan 31 ,700 .00 40.2 100 .8 3 1.0 17 .6% - - NA Northgate Te chnologies L imited 12/31 /2008 590057 BS E INR India 39 27.6 136 .2 2 4.0 25 .5% 0.2 x 1.2x 286

Open T e xt Corp. 3 /31 /2009 OT E X Nasda qGS USD C ana da 31 .73 1,6 69.7 782 .6 199.2 -1 .0% 2.2 x 8.7x 3 ,400

Openwave S ys tems Inc. 3 /31 /2009 OPWV Nasda qGS USD United S ta tes 1 105.8 197 .2 (2 .1) 54 .1% 0.0 x - 630

Pe rf ect W orld C o. , Ltd. 1 2/31 /2008 PWR D Nasda qGS USD C hina 18 .90 997.1 210 .5 113.9 -4 .9% - - NA PhotoChannel Network s Inc. 1 2/31 /2008 T S XV : PN T S XV C AD C ana da 2 47.0 17. 2 (0 .8) NM 2.7 x - NA

Quepa sa C orp. 1 2/31 /2008 QPS A Nasda qCM USD United S ta tes 0 .97 12.3 0.1 (1 1.4) 13 .1% - - 74

OAO RB C Information S ys tems 12/31 /2007 R BC I R T S USD R uss ia 1 173.4 146 .9 1 9.2 46 .0% 0.0 x 0.3x NA

S handa Interactive E ntertainment L td. 1 2/31 /2008 SNDA Nasda qGS USD C hina 49 .38 3,4 26.1 522 .7 240.2 13 .2% 0.2 x 0.4x NA S hutte rf ly, Inc. 3 /31 /2009 S F LY Nasda qGS USD United S ta tes 13 323.5 215 .2 2 8.3 6 .5% 1.2 x 9.1x 514

S K C ommunications Co., Ltd. 1 2/31 /2008 A066270 KOS E KR W South K orea 9 ,390 .00 313.1 186 .7 1 2.1 31 .4% 1.7 x 25.8 x NA

S NAP Inte ra ctive , Inc. 1 2/31 /2008 S T V I OTC BB USD United S ta tes 1 8 .1 3.0 0 .9 -3 4.8% 2.2 x 7.0x 11

S NM G lobal Holdings 9 /30 /2008 SNMN OTC PK USD United S ta tes 0 .00 0 .0 2.0 (0 .7) -6 0.5% 1.1 x - 33 S ocia l Media Venures , Inc. 1 2/31 /2008 SMVI OTC PK USD United S ta tes 0 0 .0 0.1 (0 .1) 43 .6% 0.0 x - NA

S ohu. com Inc. 3 /31 /2009 SOHU Nasda qGS USD C hina 55 .32 2,1 16.8 460 .0 200.5 NM 3.8 x 8.7x 3 ,197

S ite search C orporation 1 /31 /2009 S T PC OTC BB USD United S ta tes 3 28.2 NM (1 .1) 21 .5% - - 15

S park Networks , Inc. 1 2/31 /2008 LOV AMEX USD United S ta tes 2 .75 56.5 57. 3 1 2.3 NM 1.0 x 4.6x 183 S pectrumDNA, Inc. 1 2/31 /2008 S P XA OTC BB USD United S ta tes 0 20.5 0.1 (2 .5) 48 .9% - - 7

T encent Holdings L td. 1 2/31 /2008 700 S E HK HKD C hina 71 .30 16,5 68. 2 1 ,047.8 512.5 -1 2.0% 17.2 x 35.3 x 6 ,194

T he Parent C ompany 8/2/2008 K IDS .Q OTC PK USD United S ta tes 0 0 .3 112 .0 (1 3.5) 33 .7% 0.2 x - 347

T he9 L imited 12/31 /2008 NCT Y Nasda qGS USD C hina 9 .46 253.7 250 .2 8 4.3 2 .9% - - NA

T heS treet.com, Inc. 3 /31 /2009 T S CM Nasda qGM USD United S ta tes 2 62.8 67. 0 1 .9 -5 0.6% - - 310 T otal S port Online A S 3 /31 /2006 TOSO OTC NO NOK Norwa y 0 .03 0 .1 2.1 (1 .1) -6 .2% 4.6 x - 16

T ree.C om, Inc. 3 /31 /2009 T R E E Nasda qGM USD United S ta tes 12 130.5 215 .6 (1 3.3) 0 .4% 0.6 x - 700

Unis erve C ommunications Corp. 1 1/30 /2008 T S XV : US S T S XV C AD C ana da 0 .04 0 .8 25. 8 0 .1 21 .9% 0.1 x 29.5 x NA

United Online Inc. 3 /31 /2009 UNTD Nasda qGS USD United S ta tes 7 605.1 811 .2 177.3 -7 8.2% 1.1 x 5.0x 1 ,469 UOMO Media , Inc 1 /31 /2009 UOMO OTC BB USD C ana da 0 .25 21.0 0.6 (0 .5) 17 .8% 33.6 x - NA

Va lueC lick Inc. 3 /31 /2009 VC LK Nasda qGS USD United S ta tes 10 899.2 591 .7 105.5 NM 1.3 x 7.5x 1 ,189

VO IS , Inc. 1 2/31 /2008 VOIS OTC BB USD United S ta tes 0 .32 2 .7 0.0 (1 .3) -1 9.8% - - 4

W ebzen Inc. 1 2/31 /2008 WZEN Nasda qGM USD South K orea 3 38.9 23. 1 (4 .6) -9 8.2% - - NA W izza rd S of twa re Corpora tion 12/31 /2008 WZE AMEX USD United S ta tes 0 .62 29.2 6.1 (6 .0) NM 4.8 x - 110

W orlds .com Inc. 1 2/31 /2008 WDDD OTC BB USD United S ta tes 0 8 .9 0.1 (0 .7) NM - - 1

W ynds torm C orporation NA WYND OTC BB USD United S ta tes 0 .03 0 .5 NA NM 32 .0% - - NA

XING AG 12/31 /2008 O1B C XT R A EUR Germany 29 208.1 47. 6 1 5.2 22 .4% 3.1 x 9.8x 174 YedangOnline Corp. 1 2/31 /2007 A052770 KOS E KR W South K orea 8 ,900 .00 113.3 55. 6 1 2.4 -7 .6% 2.0 x 9.0x NA

Ynk Korea Inc. 1 2/31 /2007 A023770 KOS E KR W South K orea 6, 850 13.6 15. 8 (1 .2) NM 0.9 x - NA

ZipLocal Inc. 1 2/31 /2008 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .3 2.8 (3 .0) 0 .0% 0.6 x - NA

H igh 16,5 68. 2 1 ,737 .6 512.5 65 .0% 37.3 x 35.3 x 6 ,194

Low 0 .0 0.0 -15.9 -98.9% 0.0 x 0.3x 1

Average 496.0 148.5 33.1 8.3% 5.2x 9.3x 682Median 50.6 55. 6 0 .9 16 .0% 1.6 x 8.7x 210

Figure 1. Web 2.0 Universe Summary Source. Capital IQ

CAPIT AL M ARKET S ACT IV I TY (M &A AND F I NANCI NG )

Cyberplex a big boost for financing activity in May: Month-to-date financings in May totalled $84.3 mil lion and benefited from a financing from Cyberplex for $12.9 mill ion. So far, there have been 14 financings in May with seven deals greater than $5 mil lion and only three less than $5 mil lion. Except for Cyberplex, no deals were greater than $10 mill ion, with the capital raise by Imeem and EveryZing closely behind at $8.8 mill ion and $8.3 mil lion, respectively. The average value for April was $6.5 mil lion on 21 financings. The March average was $6.6 mill ion on 24 financings. Except for two deals (Kaixin001.com and Collective Media), al l were below $20 mil lion for the last three months and a total of four deals were greater than or equal to $15 mil lion.

Financing Activity Last Three Months

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

Cyberplex largest deal in May: After two weeks into May, Cyberplex tapped the equity markets for $12.9 mill ion. Imeem, a company from the social networks sector, fol lows with an $8.8 mill ion raise, followed very closely by EveryZing at $8.3 mil lion. Eleven of the 14 deals in the month are equal to or greater than $5 mil lion. For additional details, see Figures 23 and 24 (at end of note). Further, the month of May also witnessed the spin-off of StumbleUpon from E-bay on a $29 mill ion valuation. E-bay had bought StumbleUpon for $75 mill ion.

Financing & M/A Summary - Last Three Months

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

Ad Network is the most active sector: Activity over the last three months was busiest in the Ad Network sector, with 10 companies raising over $78.7 mil lion (Figure 4). The Media sector has the next highest totals, with eight companies raising $63.4 mill ion. It is important to note that the fol lowing sectors continue to generate the most capital activity over the last few months: Ad Network, Media, Video, and Social Networks.

Capital Market Activity by Sector - Last Three Months

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49.5 48.5

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

CAPIT AL M ARKET S ACT IV I TY (P RI CE PE RFO RM ANCE )

Web 2.0 Index outperforms: Our Web 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until recently when it has moved higher than the NASDAQ index (Figure 5).

-

20.0

40.0

60.0

80.0

100.0

120.0

Index: Web 2.0 X (Market Cap Weights) NASDAQ Composite Index - Share Pricing

Web 2.0 Index Price Performance

Figure 5. Web 2.0 Price Performance Source. Capital IQ

A positive week: The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 24 companies showing positive returns on the week. Ynk Korea, Inc. (A023770-KOSE) led the group with a 30.9% return, while Mixi, Inc. (2121-TSE) had the worst return, dropping 9.2% in the week.

1 Week Price Performance

-9.2%-8.7%-8.4%-8.2%-8.0%-7.6%-7.4%-7.4%

-5.3%-5.1%-4.7%

-3.8%-3.4%-3.2%-2.9%-2.6%-1.9%-1.6%-1.1%-0.4%

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13.3%15.0%

16.9%18.9%

21.5%30.4%30.9%

-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Mix i, Inc .S park Netw orks , Inc .TheS treet.com, Inc .

Perfect World Co. , Ltd.Ngi Group Inc .G igaMedia Ltd.Cyberplex Inc .

Frogs ter Interactive Pictures AGIAC/InterActiveCorp.Actoz S oft Co. , Ltd.

S ohu.com Inc .Modern Times Group Mtg A B

Webzen Inc .Openw ave S ys tems Inc .

Myriad Group AGNEOWIZ Games Corporation

V alueClick Inc .Neteas e.com Inc .

Changyou.com LimitedOpen Tex t Corp.GameOn Co Ltd.

The9 L imitedY edangOnline Corp.

G iant Interactive Group, Inc .Gamania Digita l Entertainment Co. , Ltd.

S K Communications Co. , Ltd.B eyond Commerce, Inc .

S handa Interactive Entertainment Ltd.Gree, Inc .

Tree.Com, Inc .K ings oft Co. Ltd.

X ING AGEolith Co. Ltd.

Tencent Holdings Ltd.PhotoChannel Netw orks Inc .

NetDragon WebS oft, Inc .S hutterf ly , Inc .Quepas a Corp.HanbitS oft, Inc .

L ingo Media CorporationNorthgate Technologies L imited

AQ Interactive, Inc .GungHo Online Entertainment, Inc .

Chines e Gamer InternationalY nk K orea Inc .

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

INDUST RY NE WS (P ART NE RS HI PS, F I NANCI AL RES UL TS, NE W P RO DUCT S )

K ey Developments

Company Headline Notes

Open T ext C orp. (NasdaqGS :OTEX) Open T ext C orp. to S how E C M S uite for U se with S AP (R )

S olutions At S AP PH IR E (R ) 2009 O rlando C onference

Open T ext C orp. announced that it will be work ing with S AP cus tomers to demons trate the Open T ext E C M S uite for us e with S AP (R )

solutions during the S AP PH IR E (R ) 2009 O rlando and the 2009 A S UG Annual conferences . During S AP PH IR E 2009, cus tomers will have the

opportunity to lea rn firs thand how the Open Tex t E CM S uite for use with S AP s oluti ons provides trans parent acces s to enterpris e content of

a ll k inds - whether customer correspondence, s canned images of invoices , contracts , or word proces sing documents and spreads heets -

from within us ers' familia r S AP applications. T his s ignific antly boosts produc tiv ity becaus e the content they need is automatically ava ilable in

the context of their work . Open T ext de livers E C M extensions that integrate with and complement S A P s olutions , helping organiza tions

reduce risk , inc rease opera tiona l effic iency and drive I T consolidation. Among the sav ings being highlighted at the Open Tex t booth (No. 336)

this week inc lude: Lowered AP proces sing cos ts as well as cost of goods, with the S AP I nvoice Management application by Open T ext;

E limination of legacy system cost (maintenance, servers, cons ulting, etc) with Legacy Decommiss ioning; R eduction of 50% or more in cons ult

Modern Times Group Mtg AB (OM:MTG

B )

Modern Times Mulls Acquisitions Modern Times G roup Mtg AB plans to make acquis itions . Modern T imes G roup announced that the 2009 Annual G enera l Meeting of MT G

sha reholders voted to s upport a ll of the resolutions propos ed to the Meeting. T he firm s a id, “The Meeting also approved the B oard of

Direc tors ' propos a l tha t the B oard be able to pas s a resolution on one or more occasions during the period up until the next Annua l G eneral

Meeting to trans fer the Company 's own C las s A and/or C las s B shares within the quoted s hare price spread on the NAS DAQ OMX

S tockholm in connection with potentia l acquisitions . This authoriz a tion incl udes the right to res olve on the disapplica tion of the preferentia l

rights of shareholders and tha t payment s ha ll be able to be made in forms other than cas h. T he purpos e of thes e authoriz a tions is to provide

the B oard of Direc tors with inc reased freedom to adapt the C ompany 's capital structure and thereby increas e s ha reholder value, and/or to

finance potentia l acquisitions .”

Modern Times Group Mtg AB (OM:MTG

B )

Modern Times G roup Mtg A B announces an E quity

B uyback

Modern Times G roup Mtg AB (OM: MT G B ) was granted shareholder approval to repurchase own shares at its A nnua l G eneral Meeting held

on May 11, 2009m. Under the program, the company will repurchas e MTG C las s A and/or Clas s B shares , provided that the G roup's holding

does not a t any time exceed 10% of the tota l number of iss ued and outstanding sha res . T he repurchase of s ha res sha ll take place on the

OMX Nordic E x change S tockholm and may only occur at a price wi thin the sha re price interva l regis tered at tha t time, where s hare price

interval means the differe nce between the highes t buy ing price and lowes t s elling price. T he company was a ls o authoriz ed to repurchas e its

own Clas s C s hares. T he repurchas e may only be effected through a public offer direc ted to a ll holders of C lass C sha res and sha l l compris e

a ll outstanding Clas s C s ha res. T he pu rchas e may be affected a t a purchase price corresponding to not les s than S E K 5. 00 and not more

than S E K 5.10. T he total price will not exceed S E K 1. 89 million and payment for the C las s C s hares s hall be ma de in cas h. T he purpos e of

the repurchas e is to ensu re the delivery of Clas s B s ha re s under the P lan. The share buyback authority i s va lid until the conclus ion of the next A nnua l G enera l Meeting.

Northgate Technologies Limited

(B SE :590057)

Northgate T echnologies L imited R eports Unaudited

Cons olida ted and S tanda lone E a rnings R esults for the

Third Quarter and Nine Months E nded December 31,

2008

Northgate Technologies L imited reported unaudited cons olida ted and standa lone ea rnings results for the third quarter and nine months

ended December 31, 2008. On cons olidated bas is, the company reported a net profit and E B I T of INR 124. 3 million or INR 3.44 per diluted

sha re on revenues of INR 1, 484.0 million for the quarter compared to net profit of INR 140. 6 million or INR 3. 94 per diluted s hare on

revenues of INR 1,404. 8 million and E B I T of INR 140. 0 million in the same period a year ago. C onsolidated E B IT DA for the quarter ra is ed to

INR 310.8 million, a year-on-yea r increase of 60% .

For the nine months ended December 31, 2008 on cons olidated basis , the company reported a net profit of INR 572.7 mi llion or IN R 16.12

per diluted s hare on revenues of INR 5, 112.7 million and E B I T of INR 572. 3 million compared to net profit of IN R 526.6 million or INR 15. 26

per diluted s hare on revenues of INR 3, 885.8 million and E B I T of INR 525. 6 million in the s ame period a yea r ago. Cons olidated E B I TDA for

the period ra is ed to INR 1,148. 7 million, a year-on-yea r increas e of 83% .

Magnitude Information Sys tems Inc.

(OTCB B:MAGY)

Magnitude Information S ys tems Inc. announced delayed

10-Q filing

On 05/12/2009, Magnitude I nformation S y stems Inc . announced that they will be unable to f ile their next 10-Q by the deadline required by the

S E C.

S hanghai Telecommunication Co.,

L td.; The9 L im ited (NasdaqGS :NCTY)

The9 L imited and T he9 L imited Jointly P romote 3G

S ervice

S hanghai T elecommunication Co. Ltd. and The9 L imited jointly promote a 3G service. U s er can pay for the serv ice while lambing down their

tolls generated by mobile phone ca lls . B oth s ides wil l coopera te in the publiciz ing and marketing of the serv ice. In the future, they will sha re

sales network s . S hangha i T elecom will s oon promote other va lue-added s ervices lik e mobile payment, location-base d information serv ice,

mobile community, and mobile games .

Hurray! Holding Co. L td.

(NasdaqGM:HR AY); Shanda Interactive

E ntertainment Ltd. (NasdaqGS :SNDA)

S handa S peculated T o B e Acquiring Hurray! There was widespread speculation that Hurray ! Holding Co. may be acquired by S handa Interactive E ntertainment Ltd. Hurray ’s American

deposita ry receipts ros e by 30% to $2. 87 in NAS DAQ s tock market trading. “C aijing magazine reported that S handa is looking a trans action

and a dea l is likely to be f inalized in the next two week s.

iseemedia Inc . (TS XV: IE E ); R emoba

Inc.

iseemedia Inc . 's is eedocs(T M) Technology G oes L ive in

R emoba 's La test Mobile E ma il S olution

iseemedia Inc . and R emoba I nc. announced that the new launch of R emoMail(TM) and R emoS ync(T M) solutions by R emoba utilizing

iseemedia 's is eedocs (TM ) rich ema il attachment viewing capabilities , is now available on the V eriz on wireless network . T hese new mobile

email s ervices, integra ting is eedocs (T M) technology, enables Microsoft E xchange ema ils with rich document a ttachments to be viewed on

B R EW (T M) enabled mobile phones tha t V erizon sell s. T hey turn every B R EW (T M) enabled mobile phone into a S martphone. Thes e new

email attachment solutions have now begun to provide both companies with a recurring royalty-bas ed revenue stream per email account

monthly.

S ocialwis e, Inc. (OTCB B: IDAE ) IdeaE dge I nc. will C hange its T icker to S CLW from IDAE E ffective May 13, 2009, IdeaE dge I nc. will change its OTC BB s tock ticker symbol to S C LW from IDAE .

CDC C orp. (NasdaqGS : CHIN.A) CDC Corp. A nnounces E arni ngs R es ults for the F irs t

Quarter E nded March 31, 2009

CDC Corp. announced earnings results for the f irs t quarter ended March 31, 2009. F or the quarter, the company's revenue totaled $79. 0

million a 20% dec line over revenues of $98. 2 million in the firs t quarter of 2008. The company's net income was $7. 9 million or $0. 07 per

sha re, an improvement over a net loss of $11.9 million or $0.11 per sha re in the corres ponding quarter of the prior yea r.

B etawave Corporation (OTCB B:BWAV) B etawave Corporation R eports Unaudited Cons olida ted

E a rnings R esults for the F irst Quarter E nded March 31,

2009

B etawave Corporation reported unaudited cons olida ted earnings res ults for the first quarter ended March 31, 2009. F or the quarter, the

company reported net los s of $4, 413,667 or $0.15 net los s per s ha re bas ic and dilute d and net cas h used in operating activities of

$4,647, 942 on revenues of $1,388, 420 against net l oss of $4, 179, 398 or $0.17 net los s per s hare basic and diluted and net cash used in

opera ting activi ties of $641, 002 on revenues of $657, 150 aga ins t a year. T otal revenue increased 111% to $1,388, 420 for the three months

ended March 31, 2009 from $657, 150 for the firs t quarter of 2 008.

C yberplex Inc . (TS X:C X) Cyberplex Mulls Acquis itions Cyberplex Inc . announced that it has entered into an agreement with a s yndica te of underwriters led by GMP S ecurities L .P . , which have

agreed to purchas e, on a bought dea l basis , 9, 375,000 common s hares of the Company at a purchas e price of $1.60 per common s hare, for

aggregate gross proceeds of $15, 000, 000. The Company intends to us e the net proceeds of the prospectus for general corpora te purpos es

and potentia l acquisitions .

C yberplex Inc . (TS X:C X) Cyberplex Inc . has f iled a F ollow-on E quity O ffering in the

amount of CAD 15 .00 millio n.

Cyberplex Inc . has f iled a Follow-on E quity O ffering in the amount of CAD 15. 00 million.

CDC C orp. (NasdaqGS : CHIN.A) CDC Corp. R eports E a rnings R esults for the F irst Q uarter

of 2009

CDC Corp. reported ea rnings results for the f irst quarter of 2009. F or the period, the company reported Adjus ted E B ITDA from continuing

opera tions of $6.7 mill ion compared to $0. 9 million, for the firs t quarter of 2008. I n the firs t quarter of 2009, the company als o recorded

opera ting cas h flows of $2.1 million compared to $5.3 million in opera ting ca sh flows in the firs t quarter of 2008.

Neteas e.com Inc. (NasdaqGS :NTE S );

On2 Technologies Inc. (AMEX:ONT )

Netease. com I nc. E nters into A S trategic P a rtners hip

Agreement with On2 Technologies Inc

Netease. com Inc . has entered into a s trategic partnership agreement with On2 T echnologies I nc . NetE ase will deploy On2's V P 6 encoding

format and F lix E ngine trans coding s oftware in a number of its v ideo channels . On2 V P 6(R ) is a proprieta ry v ideo format developed by On2

and licensed by Adobe(R ) for F la s h(R ) P layer and S un for J avaF X , a ss uring hass le-free playback . On2 V P 6 offers s uperior compres sion

performance to S orens on S park and H .264 B as eline profile . On2 F lix E ngine is a leading s erver-s ide trans coding s olution for crea ting and

publishing web video. Flix E ngine enables s upport for a broad range of input formats inc luding MP E G -2, MP E G -4, H. 263, H .264, Quick Time,

W indows Media and more. Flix E ngine outputs On2 V P 6, H .264, and S orens on S park based video for Adobe F las h P l ayer as well as H. 264

video for Apple(R ) iP od(R ) and iP hone(TM), 3G P video for mobile devices and video S un J avaF X.

K aboose Inc. (TSX:K AB) K aboos e I nc. A nnounces U naudited C onsolida ted


2009

K aboose Inc . announced unaudi ted cons olidated ea rnings res ults for the f irst quarter ended March 31, 2009. F or the period, the company

reported loss before income taxes of CAD 4,062, 000 aga ins t C AD 4,706, 000 a year ago. Los s from continuing operations was C AD

4,652, 000 or CA D 0.03 per bas ic and diluted s hare agains t CA D 3,934, 000 or CAD 0.03 per bas ic and diluted s hare a year ago. Net loss

was C AD 4,912, 000 or C AD 0.03 per basic and diluted s ha re on revenues of CAD 16, 751, 000 aga ins t CA D 3,787, 000 or CAD 0.03 per bas ic

and diluted s ha re on revenues of CA D 16,297, 000 a year ago. N et cas h provided by operating activ ities was CA D 2,760, 000 agains t net

cas h us ed in operating activities of C AD 3,084, 000 a yea r ago. P urchas es of property , plant and equipment, net of tax credits were

amounted to CAD 334, 000 against C AD 537, 000 a yea r ago.

Tencent Holdings Ltd. (S EHK:700) Tencent H oldings Ltd. Announces E a rnings R es ults for

the F irst Quarter E nded March 2009

Tencent Holdings Ltd. announced ea rnings results for the firs t quarter ended March 2009. F or the quarter, the company reported net income

of HK D 1. 05 billion ($135. 5 million), or 57 cents a s hare, compared to H KD 534 million, or 30 cents, in the year-earlier period. R evenue

through January to March tota led HK D 2.5 billion, up from HK D 1. 4 billion.

Tencent Holdings Ltd. (S EHK:700) Tencent H oldings Ltd. announces an E quity B uyback Tencent Holdings Ltd. (S E HK : 700) was granted s ha reholder approva l for an E quity B uyback a t the Annua l G eneral Meeting held on May 13,

2009. Under the program, the company will repurchas e 180, 093,334 s hares, repres enting 10% of the is sued s ha re capital of the C ompany .

Any repurchas e will be made out of funds which a re lega lly available for the purpos e in accordance with the memorandum of as socia tion and

bye-laws of the Company and the Companies A ct. The repurchases will be in accordance with l aws and requirements and regulations of the

S tock E xchange of Hong K ong L imited or on any other stock exchange on which the sha res of the Company may be lis ted and recogniz ed

by the S ecuri ties and Futures C ommis sion and the S tock E xchange of Hong K ong L imited for this purpose, s ubject to and in accordance

with a ll applicable laws and requirements of the S ecurities and F utures C ommis s ion, The S tock E x change of H ong K ong L imited or any other

stock exch ange as amended from time to time. T he s hare buyback program shall be valid until the ea rlies t of the conclus ion of the next

Annual G enera l Meeting, or the expiration of the period within which the next Annua l G eneral Meeting of the C ompany is required by the B ye-l

J umpTV Inc . (TS X :J TV) JumpT V I nc . Announces E arnings R es ults for the F irst

Quarter E nded March 31, 2009

JumpTV I nc. announced ea rnings resu lts for the firs t quarter ended March 31, 2009. For the quarter, the company reported revenue of $6. 6

million compared to $1. 9 million in the s ame period in 2008, mark ing a year over year inc reas e of 247% . The net loss was $5. 8 million

(including $1.7 million of non-cas h charges (1)) or $0.05 per s hare basic and diluted for the firs t quarter of 2009 compared to $1.5 million

(including $0.7 million of non-cas h charges (1)) or $0.03 per s hare basic and diluted for the same period in 2008. The revenue and net loss

for the three months ended March 31, 2008 reflec t the res ults of opera tions of NeuL ion Inc . the accounting acquirer, prior to the merger

between N euLion Inc. and J umpTV Inc . on October 20, 2008.

S ocialwis e, Inc. (OTCB B: IDAE ) S oci a lwis e, Inc . has C hanged its T ick er to S CLW from

IDAE

E ffective May 13, 2009, S ocia lwis e, Inc . changed its OT CBB s tock ti cker s ymbol to S CLW from IDAE .

S ocialwis e, Inc. (OTCB B: IDAE ) IdeaE dge , Inc . has C hanged its Name to S ocia lwis e, Inc . On May 13, 2009, I deaE dge, Inc . changed its name to S ocialwise, Inc .

Tencent Holdings Ltd. (S EHK:700) Tencent H oldings Ltd. R eports Unaudited Cons olida ted


2009

Tencent Holdings Ltd. reported unaudited cons olida ted earnings res ults for the first quarter ended March 31, 2009. F or the quarter, the

company reported profit before income tax of RMB 1. 2 billion compared to R MB 0.64 billion in the s ame period a year ago.

P hotoC hannel Networks Inc.

(TSXV:PN)

Photochannel Network s Inc . R eports Unaudited E arnings

R es ults for the S econd Quarter and S ix Months E nded

March 31, 2009

P hotoC hannel Networks Inc . reported unaudited earnings res ults for the s econd quarter and six months ended March 31, 2009. F or the

quarter, the company has pos ted tota l revenue of CAD 5, 015, 041 compared to C AD 3,259, 499 for the s econd quarter of 2008. GAAP net

loss for the quarter of CA D 1,475, 124 compared to C AD 2, 622,228 for the s ame period of fis cal 2008. Non-GAAP net profi t for the quarter

was C AD 543,278, compared to a non-GAAP net los s of C AD 1,285, 808 in the s econd quarter of 2008. B asic and diluted net loss per sha re

was C AD 0.04 compared to bas ic and diluted net loss per s ha re of CAD 0. 08 for the comparable period in F is cal 2008. N on-GAAP adjusted

E a rnings per s hare, defined as net profit, exc luding amortization and s hare-based compens ation expen se, of C AD 0. 02 compared to a Non-

GAAP adjusted net los s per sha re of C AD 0.04 for the comparable period for F is cal 2008.

For the six month, the company has posted tota l revenue of C AD 12, 191,374 compared to CAD 7, 558, 093 for the s ame period of 2008.

GAAP net loss for the quarter of C AD 534,480 compared to CAD 3,704, 828 for the same peri od of fisca l 2008. Non-GAA P net profit for the

quarter was C AD 3, 336,333, compared to a non-GAAP net los s of CAD 1,403, 291 for the same pe ri od of 2008. B asic and diluted net los s per

TheS treet.com, Inc . (NasdaqGM:TSCM) TheS treet.com, Inc . Announces E xecutive Changes TheS treet. com, I nc . announced that E ric As hman res igned as the company's C hief F inancial Officer, effective May 8, 2009. E ffective the

same day, R ichard B roitman, the company's V ice P resident of F inance, was appointed to the interim pos ition of the company 's Acting Chief

Accounting O fficer. Mr. B roitman, who is 56, joi ned the company as its Controller in J uly 2000 and was appointed V ice P res ident of F inance

in Oc tober 2007. B efore joining the company, Mr. B roitman was C ontroller of I ndividua l Investor G roup.

X ING AG (XTR A:O1B C) XING AG R eports E arnings R es ults for the F irs t Quarter

of 2009

XING AG reported earnings res ults for the firs t quarter of 2009. For the year, the company reported profit of E U R 1.68 million, an inc reas e of

3.7% from E UR 1. 62 million for the s ame period a yea r ago. R eve nues for the quarter were E UR 10.76 million compared to E UR 7. 51 million

for the same period a yea r ago.

S park Networks , Inc . (AMEX:L OV) S park N etwork s , Inc . R eports Unaudited C onsolidated


2009 ; Announces Impairment Charges

S park Network s, Inc . reported unaudited cons olidated ea rnings res ults for the firs t quarter ended March 31, 2009. For the quarter, the

company reported net income of $311, 000 and operating income of $1, 208, 000 or $0.02 bas ic and diluted earnings per s ha re on net revenue

of $12,032, 000 compared to net income of $1,566, 000 and operating income of $2, 477, 000 or $0.06 bas ic and diluted earnings per s ha re on

net revenue of $15, 022,000 for the s ame period a yea r ago. I ncome before income tax es for the period was $716, 000 compared to

$2,811, 000 for the same period a yea r ago. E B I TDA for the period was $1,174, 000 and adjus ted E B I TDA was $2, 801,000 compared to

E B IT DA of $3, 335,000 and adjusted E B IT DA of $4, 042,000 for the s ame period a yea r ago. F irst quarter 2009 net earnings were reduced by

an $880, 000 as s et impai rment charge primarily rela ted to HurryDate acquis ition.

The company a ls o announced that first quarter 2009 net ea rn ings were reduced by an $880, 000 ass et impa irme nt charge primarily rela ted to

HurryDate acquisition.

Figure 7. Key Developments Source. Capital IQ

VAL UAT IO N

MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 bil lion in market capitalization (Figure 8). Sixty-two of the 93 companies have market caps under US$100 mill ion, with 24 under $10 mil lion. Online gaming companies dominate the top of the list.

Market C ap (USD m)

0.00.00.00.00.00.10.10.30.30.30.81.11.22.24.14.44.44.95.26.47.58.68.99.211.112.612.714.215.115.416.618.622.225.326.226.227.228.230.030.631.131.334.234.536.939.039.649.651.351.854.154.256.660.971.675.679.983.594.895.296.196.4100.0112.8127.1127.7135.8173.4180.3198.8218.9249.1309.9320.9346.4405.1476.9553.3

654.9

701.2876.6950.7

1278.21521.6

1637.61862.21907.4

2011.92256.2

3365.13746.9

681.9

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

S oc ia lw is e, Inc .S ocia l Media V enures , Inc .

Dibz International, Inc .S NM Global Holdings

China Gatew ay CorporationA s s oc iated Media Holdings Inc .

Tota l S port Online A SFinanc ia l Media Group, Inc .

The Parent CompanyZipLocal Inc .

Unis erve Communications Corp.DigitalPos t Interactive, Inc .

B igs tring Corp.L iveWorld Inc .

B etaw ave Corporationis eemedia Inc .

Magnitude Information S ys tems Inc .MOKO.mobi L imited

B right Things plcCornerWorld Corporation

V OIS , Inc .S NAP Interactive, Inc .

Worlds . com Inc .Wynds torm Corporation

Acceleriz e New Media, Inc .L ingo Media Corporation

Quepas a Corp.Extens ions , Inc .Y nk Korea Inc .

Jumbuck Enterta inment Pty L td.S pectrumDNA , Inc .

IA S Energy , Inc .LookSmart, L td.

B roadWebAs ia Inc .Frogs ter Interactive Pic tures AG

DXN Holdings B hdGravity Co. , L td

S ites earch CorporationUOMO Media , Inc

Wiz z ard S of tw are CorporationAQ Interactive, Inc .

F luid Mus ic Canada, Inc .Northgate Technologies L imited

Dolphin Digital Media, Inc .Webz en Inc .

NeXplore CorporationNgi Group Inc .

PhotoChannel Netw orks Inc .Beyond Commerce, Inc .

S park Netw orks , Inc .Eolith Co. L td.

Digita lTow n, Inc .TheS treet.com, Inc .

GeoS entric OyjK aboos e Inc .JumpTV Inc .

Cyberplex Inc .Moggle, Inc

GameOn Co Ltd.A ctoz S of t Co. , L td.

HanbitS of t, Inc .Myriad Group AG

Openw ave S ys tems Inc .Y edangOnline Corp.

Tree.Com, Inc .DADA S pACDC Corp.

OAO RBC Information S ys temsGamania Digital Enterta inment Co. , L td.

GungHo Online Enterta inment, Inc .X ING AG

The9 LimitedS K Communications Co. , L td.

G igaMedia L td.S hutterf ly , Inc .

NetDragon WebS oft, Inc .NEOWIZ Games Corporation

United Online Inc .K ings oft Co. L td.

Mix i, Inc .Chines e Gamer International

V alueClick Inc .Perfect World Co. , L td.

Gree, Inc .Changyou.com Limited

Open Tex t Corp.G iant Interactive Group, Inc .Modern Times Group Mtg AB

S ohu.com Inc.IAC/InterA ctiveCorp.

S handa Interactive Enterta inment L td.Neteas e.com Inc.

Figure 8. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 5.6x: The overall average TEV/Revenue (LTM) multiple for our group is 5.6x (up from 5.2x last week) (Figure 9). However, this is skewed by Gree (3633-TSE) at 38.9x and Dolphin Digital Media Inc. (DPDM-OTCBB) at 38.3x. The median is only 2.1x. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.00.00.00.00.10.10.20.20.30.30.40.50.50.50.60.70.80.90.91.01.01.11.11.11.31.31.31.31.41.41.51.72.1

2.12.22.42.42.72.82.93.13.43.53.63.9

4.64.64.74.74.75.05.15.16.06.0

8.18.9

11.312.9

19.320.6

29.931.5

38.338.9

Average, 5.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Social M

edia Venures, Inc.

China Gateway Corporation

AQ Interactive, Inc.

OAO RBC Inform

ation Systems

LiveWorld Inc.

Uniserve Communications Corp.

Shanda Interactive Entertainment Ltd.

The Parent Company


IAC/InterActiveCorp.

CDC Corp.

GameOn Co Ltd.

DXN Holdings Bhd

Tree.Com, Inc.

ZipLocal Inc.

DADA SpA

Jumbuck Entertainment Pty Ltd.

Spark Networks, Inc.

Actoz Soft Co., Ltd.

Ynk Korea Inc.

United O

nline Inc.

SNM G

lobal H

oldings

Cyberplex Inc.

Kaboose Inc.

Gamania Digital E

ntertainment Co., Ltd.

GigaMedia Ltd.

Shutterfly, Inc.

ValueClick Inc.

Modern Times G

roup M

tg AB

HanbitS

oft, Inc.

GungHo Online Entertainment, Inc.

SK Communications Co., Ltd.

YedangOnline Corp.

iseemedia Inc.

Open Text Corp.

SNAP Interactive, Inc.

NEOWIZ G

ames Corporation

Myriad G

roup AG

Eolith Co. Ltd.

PhotoChannel N

etworks Inc.

NetDragon W

ebSoft, Inc.

XING AG

MOKO.m

obi Limited

Sohu.com Inc.

Accelerize New M

edia, Inc.

JumpTV Inc.

Total Sport O

nline AS

Mixi, Inc.

Frogster Interactive Pictures AG

Fluid M

usic Canada, Inc.

Kingsoft Co. Ltd.

Wizzard Software Corporation

DigitalPost Interactive, Inc.

CornerW

orld Corporation

Changyou.com Limited

Associated M

edia Holdings Inc.

GeoSentric Oyj

Chinese G

amer International

Lingo M

edia Corporation

Tencent Holdings Ltd.

Bright Things plc

Beyond Commerce, Inc.

Bigstring Corp.

Dolphin Digital M

edia, Inc.

Gree, Inc.

Figure 9. TEV/Revenue Ranking Source. Capital IQ

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 (19), trading at an average multiple of 20.6x (up from 18.1x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 6.4x revenue (up from 6.0x last week) (Figure 11). Eleven of the companies are Canadian (average 7.5x revenue).

Average TEV/LTM Revenue - By Exchange

0.5 0.30.00.50.7

1.41.51.61.71.82.12.72.93.03.74.04.6

6.38.9

9.1

11.0

20.6

20.6

0.0

5.0

10.0

15.0

20.0

25.0

OT

CB

B

AIM

TS

E

SE

HK

HLS

E

GT

SM

OT

CN

O

XT

RA

TS

XV

AM

EX

TS

X

SW

X

AS

X

KO

SE

NasdaqG

S

OT

CP

K

OS

E

OM

CM

NasdaqG

M

KLS

E

BS

E

RT

S

19 1 5 3 1 2 1 2 5 2 4 1 2 7 14 10 1 1 1 5 1 1 1

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.4 0.3 0.00.7 0.5

1.41.82.12.74.0

4.64.66.26.47.58.9

9.1

20.6

0.0

5.0

10.0

15.0

20.0

25.0

Unite

d

Japan

Fin

land

Canada

Unite

d

Chin

a

Taiw

an

Norw

ay

Germ

any

Sw

itzerland

Austr

alia

South

Sw

eden

Italy

Mala

ysia

Hong K

ong

India

Russia

1 6 1 11 40 10 3 1 2 1 2 9 1 1 1 1 1 1

(x)

# Companies

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

TEV/EBITDA (LTM) averages 9.4x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 9.2x LTM EBITDA (sl ightly down from 9.74 last week), led by Uniserve Communications Corp.’s (USS-TSX) 29.5x multiple (Figure 12). Fourteen of the companies have EBITDA multiples under 7x. The median multiple is 8.2x (vs. 8.1x last week).

TEV/LTM EB ITDA (x)

0.2 0.3 0.31.4 1.8 2.1

3.9 4.2 4.6 4.7 4.7 4.8 5.36.8 7.3 7.5 7.6 8.2 8.5 8.5 8.7 8.9 9.3 9.4 9.9 9.9 10.5 10.5 11.2

12.3 12.8

20.2

26.2

29.5

Average, 9.2

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

AQ Interactive, Inc.

OAO RBC Inform

ation Systems



GameOn Co Ltd.


DXN Holdings Bhd



DADA SpA

United O

nline Inc.

CDC Corp.

GigaMedia Ltd.

NetDragon W

ebSoft, Inc.

ValueClick Inc.

Gamania Digital E

ntertainment Co., Ltd.


Sohu.com Inc.

GungHo Online Entertainment, Inc.

Open Text Corp.


NEOWIZ Games Corporation

YedangOnline Corp.

Modern Times Group Mtg AB


Shutterfly, Inc.

Cyberplex Inc.

XING AG

Kaboose Inc.

Mixi, Inc.

Kingsoft Co. Ltd.

Chinese Gamer International

SK Communications Co., Ltd.

Uniserve Communications Corp.

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 (19), trading at an average multiple of 7.6x (up from 7.0x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 7.1x EBITDA (Figure 14). Eleven of the companies are Canadian (average 14.9x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.31.42.13.94.24.74.8

6.87.68.59.410.510.912.213.9

19.7

29.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

TS

XV

SE

HK

GT

SM

KO

SE

TS

X

XT

RA

OM

OS

E

OT

CB

B

NasdaqG

S

TS

E

CM

AM

EX

KLS

E

AS

X

BS

E

RT

S

5 3 2 7 4 2 1 1 19 14 5 1 2 1 2 1 1

(x)

# Companies

Average TEV/LTM EBITDA - By Country

2.10.3

1.4

3.94.7

4.85.77.1

9.410.511.0

12.2

12.9

14.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Canada

Chin

a

South

Kore

a

Taiw

an

Germ

any

Sw

eden

Unite

d

Sta

tes

Japan

Hong

Kong

Italy

Mala

ysia

Austr

alia

India

Russia

11 10 9 3 2 1 40 6 1 1 1 2 1 1

(x)

# Companies

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

P/E (LTM) averages 14.1x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 14.1x LTM EPS (same as last week), led by Mixi, Inc’s (2121-TSE) 31.9x multiple (Figure 15). Twelve of the companies have P/E multiples under 10x. The median is just 11.3x.

P/E LTM (x)

0.71.7 1.8 2.2 2.5 2.8

4.45.8

6.67.4

9.4 9.8 10.211.2 11.3 11.3 11.3

12.1 12.413.4

15.0

16.9

19.2 19.2

21.7

25.527.2

28.8

30.931.9

A verage, 14.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

The9 Limited

Perfect World Co., Ltd.

Giant Interactive Group, Inc.


Netease.com Inc.


DXN Holdings Bhd

Modern Times Group Mtg AB


DADA SpA

GameOn Co Ltd.

Cyberplex Inc.

GigaMedia Ltd.


Ngi Group Inc.


Sohu.com Inc.

YedangOnline Corp.


NetDragon WebSoft, Inc.


Kingsoft Co. Ltd.


Gamania Digital Entertainment Co., Ltd.

XING AG

Open Text Corp.

Chinese Gamer International

NEOWIZ Games Corporation

Worlds.com Inc.

Mixi, Inc.

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 (19), trading at an average multiple of 21.1x. On a geographic basis, the United States has the most companies (40), trading at an average of 18.5x earnings (Figure 17). Eleven of the companies are Canadian (average 17.7x EPS).

Average P/E - By Exchange

1.82.2

4.45.86.67.4

9.59.812.4

17.518.6

21.121.723.2

27.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

SE

HK

GT

SM

XT

RA

OT

CB

B

KO

SE

TS

E

AM

EX

TS

X

NasdaqG

S

CM

AS

X

OM

KLS

E

BS

E

NY

SE

3 2 2 19 7 5 2 4 14 1 2 1 1 1 1

(x)

# Companies

Average P/E - By Country

2.2

4.45.8

6.67.4

11.5

17.517.7

18.518.618.9

21.7

0.0

5.0

10.0

15.0

20.0

25.0

Germ

any

Taiw

an

South

Kore

a

Unite

d

Sta

tes

Canada

Japan

Chin

a

Italy

Austr

alia

Sw

eden

Mala

ysia

India

2 3 9 40 11 6 10 1 2 1 1 1

(x)

# Companies

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

UP CO MI NG EVE NTS

Earnings Calendar

Company Date & T ime Quarter Conf Call Details

Netease. com Inc . (Nas daqGS : NT E S ) W ednes day, May 20, 2009 9:00 PM (E DT ) Q 1 2009 877- 941-2068

A irMedia G roup Inc. (Nas daqGM: AMC N) Monday, May 18, 2009 7: 00 PM (E DT ) Q 1 2009 800-901-5217

DHX Media L td. (TS X : DHX) T uesday , May 19, 2009 11: 00 AM (E DT ) Q 3 2009 800-731-5774

G i ant Interactive G roup, I nc. (NY S E : GA) T uesday , May 26, 2009 8: 00 AM (E DT ) Q 1 2009 800-573-4842

Figure 18. Earnings Calendar Source. Company reports

Comparable Company Analys is > Web 2 .0

P rice Performance

C ompany Name Cur rency Tic ker Exchange USD Market C ap ($m) Current Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Acce le rize New Media, Inc. USD ACL Z OTC BB 11.1 0.4 0 -9.1% -11. 1% 14 .3% 0 .0% -46 .7% -48. 7%

Actoz S of t C o., L td. KR W A052790 KO S E 95.2 14,100.0 0 -5.1% 4.4% 11 .0% 52 .4% 62.3% -13. 0%

AQ Inte ractive , Inc. J PY 3838 T S E 31.1 54,800.0 0 18.9% 28.9% 67 .6% 44 .2% -75 .2% -76. 7%As socia ted Media Holdings Inc. USD A SMH OTC PK 0 .1 0.0 0 0.0% 7.1% -70.0% -50.0% NM -97. 0%

B igstring Corp. USD B SGC OTC BB 1 .2 0.0 2 -4.2% 53.3% 43 .8% -8.0% -83 .6% -88. 5%

Be tawave Corpora tion USD B W AV OTC BB 4 .1 0.1 4 26.1% 16.7% -30.0% -41.7% -46 .2% -66. 7%

Beyond Commerce, Inc. USD B YOC OTC BB 51.3 1.2 4 2.5% -21. 0% 77 .1% 7 .8% -54 .9% -62. 4%Bright T hings plc GBP A IM:B GT AI M 5 .2 0.0 2 0.0% 26.8% -6 .4% 40 .0% -46 .2% -50. 0%

Broa dWebAs ia Inc. USD B W BA OTC PK 25.3 0.3 0 -33. 8% -33. 8% -70.5% -77.9% -86 .8% -89. 7%

C DC C orp. USD CH IN .A Nasda qGS 135.8 1.2 8 -14. 1% 2.4% 45 .5% 30 .6% -64 .5% -66. 3%

C ha ngyou. com Limited USD C YOU Nasda qGS 1,5 21. 6 29.6 9 -1.1% 8.8% NM NM NM -21. 3%C hina Gatewa y C orpora tion USD CGWY OTC PK 0 .0 0.0 0 100. 0% 100.0% 0 .0% -86.7% -96 .7% -95. 6%

C hine se G amer International TW D G TS M:3083 GT SM 701.2 274.5 0 30.4% 41.5% 134.6% 245.3% 139. 7% -4.7%

C ornerW orld C orporation USD CW R L OTC BB 6 .4 0.1 0 -16. 7% -28. 6% -75.6% -50.0% -80 .4% -87. 5%

C yberplex Inc. C AD T S X:CX T S X 79.9 1.7 5 -7.4% 52.2% 393.0% 337.5% 118. 8% -12. 1%

DADA S pA EUR CM:DA CM 127.7 5.7 9 -13. 7% 17.0% -7 .7% -13.5% -61 .0% -64. 2%DXN Holdings B hd MYR DXN KL S E 26.2 0.4 0 -10. 1% 27.0% 14 .3% 11 .1% -14 .0% -20. 8%

Dibz Inte rnational, Inc. USD DIBZ OTC PK 0 .0 0.0 0 -90. 0% -90. 0% -90.0% -98.0% -98 .0% -98. 0%

DigitalPost Inte ra ctive , Inc. USD DGLP OTC BB 1 .1 0.0 2 -11. 2% 25.0% 15 .4% -62.5% -92 .0% -94. 6%

DigitalT own, Inc. USD DGTW OTC BB 54.2 2.0 0 -20. 0% -20. 0% 33 .3% 0 .0% -23 .1% -67. 2%Dolphin Digital Media, Inc. USD DPDM OTC BB 34.5 0.7 0 9.4% 42.9% 32 .1% -22.2% NM -38. 1%

E olith C o. L td. KR W A041060 KO S E 54.1 950.0 0 7.3% 53.2% 63 .8% 75 .9% 3.3% -18. 1%

E xtens ions , Inc. USD E XT I OT C PK 14.2 0.1 5 -25. 0% -25. 0% 185.7% 50 .0% 0.0% -85. 1%

F inancia l Media G roup, Inc. USD FNGP OTC BB 0 .3 0.0 0 -18. 4% -23. 1% -73.3% -98.0% -99 .3% -99. 6%F luid Mus ic Ca nada, Inc. C AD T S X:FMN T S X 31.3 0.7 0 55.6% 100.0% 16 .7% 84 .2% NM -65. 7%

F rogste r Interactive P icture s AG EUR F R G XT R A 26.2 8.1 8 -7.4% -2.0% 86 .3% 90 .2% 76.7% -17. 4%

Gama nia Digital E ntertainment C o., L td. TW D 6180 GT SM 180.3 39.1 0 1.3% 15.9% 64 .6% 196.2% 9.1% -6.9%

GameOn C o L td. J PY 3812 T S E 94.8 93,800.0 0 0.0% 0.5% -16.3% -21.2% -32 .0% -42. 6%GeoS entr ic O yj E UR G EO1V HLS E 60.9 0.0 5 0.0% 25.0% 66 .7% 25 .0% -28 .6% -28. 6%

G iant Intera ctive G roup, Inc. USD G A NYS E 1,8 62. 2 8.2 4 1.1% 9.4% 32 .5% 36 .4% -38 .7% -49. 4%

G igaMedia Ltd. USD G IGM Nasda qGS 320.9 5.9 4 -7.6% -9.3% -19.5% 11 .2% -66 .6% -70. 1%

G ravity C o., L td USD G RV Y Nasda qGM 27.2 0.9 8 0.0% 2.1% 38 .0% 46 .9% -30 .0% -50. 8%G ree, Inc. J PY T S E :3632 T S E 1,2 78. 2 5,480.0 0 3.8% -0.2% -1 .3% NM NM -13. 0%

GungHo O nline E ntertainment, Inc. J PY 3765 OS E 198.8 166,000.0 0 21.5% 36.9% 68 .4% 45 .6% -54 .5% -61. 8%

HanbitS oft, Inc. KR W A047080 KO S E 96.1 5,550.0 0 13.3% 24.4% 43 .4% 105.2% 0.4% -20. 8%

IAC /InterActiveC orp. USD I ACI Nasda qGS 2,2 56. 2 14.9 5 -5.3% -8.3% -0 .7% -6.1% -68 .3% -70. 4%IAS E nergy, Inc. USD I AS C .A OTC BB 18.6 0.2 7 -5.4% 120.8% 960.0% 419.6% 23.3% -24. 3%

is eemedia Inc. C AD I E E T S XV 4 .4 0.1 0 5.3% 0.0% -16.7% 42 .9% -58 .3% -71. 4%

J umbuck E ntertainment P ty Ltd. AUD A S X:JMB AS X 15.4 0.4 1 2.5% -14. 6% 2 .5% 2 .5% -31 .7% -37. 4%

J umpT V Inc. C AD T S X:J T V T S X 75.6 0.7 8 6.8% 44.4% 77 .3% 30 .0% 13.0% -39. 1%Ka boose Inc. C AD T S X:KAB T S X 71.6 0.6 0 0.0% 3.4% 57 .9% 62 .2% -33 .3% -52. 0%

K ingsoft Co. Ltd. HKD 3888 S E HK 654.9 4.7 0 4.0% 32.8% 58 .8% 124.9% 26.3% -1.1%

Lingo Media Corporation C AD T S XV :LM T S XV 12.6 1.1 5 15.0% 21.1% 27 .8% 3 .6% -39 .5% -43. 3%

LiveWorld Inc. USD L VWD OTC PK 2 .2 0.0 7 -6.7% -30. 0% 75 .0% 0 .0% -80 .0% -82. 9%LookSmart, Ltd. USD L OOK Nasda qGM 22.2 1.3 0 -14. 5% 9.2% -5 .1% -20.2% -71 .0% -72. 3%

Magnitude Information S ys tems Inc. USD MAGY OTC BB 4 .4 0.0 1 0.0% -16. 7% -60.0% -23.1% -44 .4% -66. 7%

Mixi, Inc. J PY 2121 T S E 681.9 425,000.0 0 -9.2% 11.3% -2 .5% -32.0% -43 .3% -55. 4%

Mode rn Times G roup Mtg AB S E K MTG B OM 1,907. 4 227.5 0 -3.8% 38.3% 66 .4% 50 .2% -45 .4% -49. 4%Moggle , Inc USD MMOG OTC BB 83.5 2.3 0 15.0% 15.0% 53 .3% NM NM 0.0%

MOKO.mobi L imited AUD MKB AS X 4 .9 0.0 8 0.0% -16. 7% 87 .5% 87 .5% 150. 0% -25. 0%

Myriad G roup AG CHF MYR N SW X 96.4 5.0 0 -2.9% 19.0% -2 .0% -28.6% -44 .4% -51. 2%

NEOW IZ Games C orpora tion KR W A095660 KO S E 476.9 62,700.0 0 -2.6% -4.9% 100.0% 362.7% 81.0% -14. 6%NetDragon W ebS oft, Inc. HKD 777 S E HK 405.1 5.9 4 9.8% 33.5% 102.0% 130.2% -45 .7% -54. 4%

Nete ase.com I nc. USD NT E S Nasda qGS 3,7 46. 9 30.4 5 -1.6% 2.2% 58 .2% 55 .0% 26.1% -6.7%

NeXplore Corpora tion USD NXPC OTC PK 39.0 0.7 0 0.0% 0.0% -11.4% -39.1% NM -51. 7%

Ngi G roup Inc. J PY 2497 T S E 39.6 30,650.0 0 -8.0% 5.9% 12 .8% -57.4% -79 .4% -81. 6%

Northgate Te chnologies L imited INR 590057 BS E 34.2 48.8 5 16.9% 7.6% 4 .8% -20.6% -87 .5% -88. 4%Open T ext Corp. USD O TE X Nasda qGS 1,6 37. 6 31.1 2 -0.4% -14. 4% -12.5% 8 .2% -14 .6% -20. 4%

Openwave S ys tems Inc. USD O PWV Nasda qGS 100.0 1.2 0 -3.2% -4.8% 34 .8% 84 .6% -39 .7% -44. 4%

Pe rfect W orld C o. , Ltd. USD P W RD Nasda qGS 950.7 18.0 2 -8.2% 6.9% 26 .0% 6 .6% -29 .5% -43. 4%

PhotoChannel Network s Inc. C AD T S XV :PN T S XV 49.6 1.7 0 9.7% 4.9% -4 .0% 21 .4% -52 .1% -59. 0%Quepa sa C orp. USD Q PSA Nasda qCM 12.7 1.0 0 11.1% 33.5% -30.1% -54.3% -61 .1% -71. 1%

OAO RB C Information S ys tems USD R BC I R T S 173.4 1.2 5 26.9% 204.9% 346.4% -16.7% -85 .2% -86. 3%

S handa Interactive E ntertainment L td. USD S NDA Nasda qGS 3,3 65. 1 48.5 0 2.7% -3.0% 58 .8% 100.2% 42.0% -10. 0%

S hutte rf ly, Inc. USD S F LY Nasda qGS 346.4 13.7 6 10.7% 29.6% 62 .1% 101.5% 5.0% -8.8%S K C ommunications Co., Ltd. KR W A066270 KO S E 309.9 9,540.0 0 1.7% -4.1% 22 .6% 108.3% -33 .3% -51. 6%

SNAP Inte ra ctive , Inc. USD S T V I OT C BB 8 .6 0.8 0 6.7% 14.3% -19.2% 6 .7% 1.3% -25. 9%

SNM G lobal Holdings USD S NMN OTC PK 0 .0 0.0 0 10.0% 1550. 0% 230.0% NM -99 .8% -99. 9%

S ocia l Media Venures , Inc. USD S MVI OT C PK 0 .0 0.0 1 -93. 3% -99. 2% -99.2% -99.7% NM -99. 8%S ohu. com Inc. USD S OHU Nasda qGS 2,0 11. 9 52.5 8 -4.7% 6.6% 11 .0% 21 .4% -35 .1% -42. 5%

S ite s earch C orporation USD S T PC OTC BB 28.2 3.5 0 -30. 0% NM NM NM NM -30. 0%

S park Networks , Inc. USD L OV AMEX 51.8 2.5 2 -8.7% 9.6% -1 .2% -17.4% -43 .4% -45. 8%

S pectrumDNA, Inc. USD S PXA OTC BB 16.6 0.3 4 -12. 8% 240.0% 240.0% 41 .7% NM -43. 3%T encent Holdings L td. HKD 700 S E HK 18, 485 .5 79.5 5 8.2% 29.2% 63 .3% 58 .6% 25.1% -4.3%

T he Parent C ompany USD K IDS .Q OTC PK 0 .3 0.0 1 4.0% -13. 3% -56.7% -98.6% -99 .6% -99. 6%

T he9 L imited USD NC TY Nasda qGS 249.1 9.2 9 0.5% -6.7% -35.9% -22.8% -63 .9% -67. 4%

T heS treet.com, Inc. USD T S CM Nasda qGM 56.6 1.8 5 -8.4% -21. 6% -28.8% -41.6% -75 .9% -77. 2%T otal S port Online A S NOK TOS O OTC NO 0 .1 0.0 3 0.0% -25. 0% -25.0% -40.0% -70 .0% -70. 0%

T ree.C om, Inc. USD T R E E Nasda qGM 127.1 11.7 7 3.8% 117.6% 201.0% 437.4% NM -7.5%

Unis erve C ommunications Corp. C AD T S XV :US S T S XV 0 .8 0.0 4 0.0% 0.0% -50.0% -77.8% -89 .5% -91. 1%

United Online Inc. USD UNTD Nasda qGS 553.3 6.6 2 -11. 4% 31.6% 27 .6% 0 .0% -45 .5% -47. 0%UOMO Media , Inc USD UOMO OTC BB 30.0 0.3 5 40.0% 218.2% 337.5% 125.8% -22 .2% -56. 3%

Va lueC lick Inc. USD V CL K Nasda qGS 876.6 10.0 8 -1.9% 6.6% 41 .4% 76 .5% -48 .4% -51. 4%

VO IS , Inc. USD V OIS OTC BB 7 .5 0.9 0 181. 3% 200.0% 20 .0% 20 .0% NM -83. 9%

W ebzen Inc. USD W ZEN Nasda qGM 36.9 3.1 1 -3.4% 2.3% 107.3% 238.0% 2.3% -30. 1%W izza rd S of twa re Corpora tion USD W ZE AMEX 30.6 0.6 5 8.3% 18.6% -11.0% -21.7% -70 .7% -72. 3%

W orlds .com Inc. USD WDDD OTC BB 8 .9 0.1 7 -15. 0% 0.0% -15.0% 6 .3% -55 .3% -57. 5%

W ynds torm C orporation USD W YND OTC BB 9 .2 0.5 1 1600 .0% 200.0% 325.0% 325.0% -15 .0% -40. 0%

XING AG EUR O 1BC XT R A 218.9 30.5 0 5.2% 8.9% 3 .6% 5 .9% -32 .2% -34. 6%YedangOnline Corp. KR W A052770 KO S E 112.8 9,100.0 0 0.8% -1.5% 28 .3% 58 .8% -17 .3% -27. 5%

Ynk Korea Inc. KR W A023770 KO S E 15.1 7,800.0 0 30.9% 66.3% 74 .1% 31 .1% -43 .9% -47. 7%

ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 0.0% 0.0% -75.0% -50.0% -96 .2% -97. 1%

H igh 1600 .0% 1550. 0% 960.0% 437.4% 150. 0% 0.0%

Low -93. 3% -99. 2% -99.2% -99.7% -99 .8% -99. 9%

Average 518.4 19.3% 38.9% 50.3% 39.0% -32.8% -51.9%

Median 0.0% 7.6% 24 .3% 11 .1% -44 .1% -51. 3%

Figure 19. Price Performance Source. Capital IQ

Comparable C ompany Analys is > Web 2.0V aluation Multiples

C ompany Name Sector Country

Primary

E xchange Ticker

USD Market

Cap ($m)

TEV/LTM

R evenue

TEV/ NTM

R evenue

TEV/LTM

E BITDA

TE V/NTM

E BITDA P/LTM EPS P/NTM EPS P/TangBV

Acce le rize New Media, Inc. D irect Marketing Unite d S tates OT C BB AC LZ 13. 8 4.6 x - - - - - -

Actoz S of t C o., L td. Gaming S outh Kore a KOS E A052790 99. 4 0.9 x - 4.7 x - 15 .3x - 1 .7x

AQ Inte ractive , Inc. Gaming J a pan T S E 3838 26. 8 - - - - - - 0 .4xAs socia ted Media Holdings Inc. Mobile Unite d S tates OT C PK ASMH 0. 1 8.1 x - - - - - -

B igstring Corp. Ins ta nt Mes s aging Unite d S tates OT C BB BSG C 1. 2 30.6 x - - - - - -

Be tawave Corpora tion Media Unite d S tates OT C BB B WAV 3. 2 - - - - - - 0 .3x

Be yond Commerce, Inc. S ocia l Ne tworking Unite d S tates OT C BB BYO C 43. 0 25.4 x - - - - - -B r ight T hings plc S ocia l Ne tworking Unite d K ingdom AIM AIM:BGT 5. 6 22.1 x - - - - - -

B roa dW ebAs ia Inc. S ocia l Ne tworking Unite d S tates OT C PK B WB A 25. 3 - - - - - - -

C DC C orp. Gaming Hong K ong Nasda qGS C HIN .A 157. 3 0.4 x 0.4x 5.5 x 6.0x - 1 0.7 x -

C ha ngyou. com Limited Gaming C hina Nasda qGS CY OU 1,5 27. 3 6.0 x 4.5x 9.9 x - 11 .2x 1 0.6 x 1 0.2xC hina Gatewa y C orpora tion Mobile Unite d S tates OT C PK CGWY 0. 0 0.0 x - - - - - -

C hine se Gamer International Gaming T a iwan GT SM GT SM:3083 575. 6 9.1 x - 16.2 x - 22 .3x - 8 .4x

C ornerW orld C orporation C ontent Unite d S tates OT C BB CWR L 6. 4 6.0 x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T SX:C X 86. 5 1.2 x 0.9x 11.3 x 7.5x 10 .5x 1 1.2 x 1 0.2x

DADA S pA S ocia l Ne tworking Italy CM CM:DA 139. 4 0.8 x - 5.0 x - 8. 0x - -DXN Holdings B hd S ocia l Ne tworking Malays ia KL S E DXN 29. 1 0.6 x - 4.2 x - 4. 8x - 0 .6x

Dibz Inte rnational, Inc. S NS A pps Unite d S tates OT C PK DIBZ 0. 0 - - - - - - -

D igitalPost Inte ra ctive , Inc. C ontent Unite d S tates OT C BB DGL P 1. 1 5.1 x - - - - - -

D igitalT own, Inc. S ocia l Ne tworking Unite d S tates OT C BB DGTW 67. 7 - - - - - - -Dolphin Digital Media, Inc. S ocia l Ne tworking Unite d S tates OT C BB DP DM 33. 5 37.2 x - - - - - -

E olith C o. L td. Gaming S outh Kore a KOS E A041060 52. 4 2.7 x - - - - - 5 .0x

E xte ns ions , Inc. C ontent Unite d S tates OT C PK E XT I 14. 2 - - - - - - -

F inancia l Media G roup, Inc. D irect Marketing Unite d S tates OT C BB FNGP 0. 4 - - - - - - -F luid Mus ic Ca nada, Inc. Media Unite d S tates T S X T S X:FMN 20. 4 1.9 x 1.4x - - - - 1 .9x

F rogs te r Interactive P icture s AG Gaming G ermany XT RA F RG 24. 6 4.4 x - - - - - 2 .2x

Gama nia D igital E ntertainment C o. , L td. Gaming T a iwan GT SM 6180 178. 2 1.2 x - 7.4 x - 19 .0x - 2 .3x

GameOn C o L td. Gaming J a pan T S E 3812 91. 0 0.4 x - 1.7 x - 9. 2x - 1 .2xGeoS entr ic O yj Mobile F inland HLSE GEO1V 48. 8 6.9 x - - - - - 4 .9x

G iant Intera ctive G roup, Inc. Gaming C hina NYS E G A 1,8 62. 2 - - - - 1. 8x 1 3.5 x 0 .4x

G igaMedia Ltd. Gaming T a iwan Nasda qGS GIGM 344. 7 1.4 x 1.5x 5.8 x 6.4x 11 .0x 1 1.3 x 3 .1x

G ravity C o. , L td Gaming S outh Kore a Nasda qGM GR VY 27. 0 - - - - - - -G ree, Inc. S ocia l Ne tworking J a pan T S E T S E :3 632 1,2 03. 8 37.3 x - - - - - 1 5.3x

GungHo O nline E ntertainment, Inc. Media J a pan OS E 3765 167. 5 1.3 x - 7.1 x - - - -

HanbitS of t, Inc. Gaming S outh Kore a KOS E A047080 86. 3 1.2 x - - - - - 2 .6x

IAC /InterActiveC orp. Media Unite d S tates Nasda qGS IAC I 2,3 92. 0 0.4 x - 11.9 x - 20 .4x 3 1.3 x 1 .1xIAS E nergy, Inc. V ideo C anada OT C BB IA S C .A 19. 6 - - - - - - -

IdeaE dge, Inc. S ocia l Ne tworking Unite d S tates OT C BB OT C BB :IDA E 0. 0 - - - - - - -

iseemedia Inc. C ontent C anada T S XV IE E 4. 0 1.8 x - - - - - 2 .1x

J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:JMB 15. 3 0.8 x - 2.1 x - 6. 5x - 1 .6xJ umpT V Inc. V ideo C anada T S X TS X:J T V 69. 7 4.0 x - - - - - 3 .6x

Ka boose Inc. C ontent C anada T S X TS X:KAB 72. 5 1.1 x 1.1x 9.5 x 5.7x - - -

K ingsoft Co . Ltd. Gaming C hina S E HK 3888 576. 9 4.2 x - 10.9 x - 14 .9x - 3 .5x

Lingo Media Corporation Le arning C anada T S XV TS XV :LM 11. 1 10.9 x - - - - - 8 .9xLiveWorld Inc. S ocia l Ne tworking Unite d S tates OT C PK LVWD 2. 2 0.1 x - - - - - 0 .9x

LookSmart, Ltd. D irect Marketing Unite d S tates Nasda qGM LOOK 24. 6 - - - - - - 0 .9x

Magnitude Information S ys tems Inc. S ocia l Ne tworking Unite d S tates OT C BB MAGY 4. 4 - - - - - - -

Mixi, Inc. S ocia l Ne tworking J a pan T S E 2121 708. 4 5.0 x - 13.2 x - 33 .7x - 5 .5xMode rn Times G roup Mtg AB Media S weden OM MTG B 2,0 20. 2 1.5 x 1.5x 9.7 x 1 1.5 x 6. 0x 1 3.7 x -

Moggle , Inc Gaming Unite d S tates OT C BB MMO G 83. 5 - - - - - - -

MOKO.mobi L imited S ocia l Ne tworking A us tralia AS X MKB 5. 0 3.5 x - - - - - 3 .9x

Myriad G roup AG Mobile S witzerland SWX MYR N 98. 2 2.8 x - - - - - 4 .5xNEOW IZ Games C orpora tion Gaming S outh Kore a KOS E A095660 487. 1 2.4 x - 8.9 x - 28 .7x - 1 4.5x

NetDragon W ebS oft , Inc. Gaming C hina S E HK 777 377. 2 2.8 x - 6.1 x - 12 .4x - 2 .0x

Nete ase.com I nc. Gaming C hina Nasda qGS NT E S 3,8 09. 7 - - - - 2. 5x 1 5.4 x 0 .7x

NeXplore Corpora tion C ontent Unite d S tates OT C PK NXPC 39. 0 - - - - - - -

Ngi G roup Inc. Media J a pan T S E 2497 40. 2 - - - - 11 .7x - 0 .6xNorthgate Te chnologies L imited Direct Marketing India BS E 590057 27. 6 0.2 x - 1.2 x - 1. 8x - -

Open T e xt Corp. C ollaboration C anada Nasda qGS O TE X 1,6 69. 7 2.2 x 2.1x 8.7 x 7.6x 26 .1x - -

Openwave S ys tems Inc. Mobile Unite d S tates Nasda qGS OPWV 105. 8 0.0 x 0.0x - 0.0x - 2 0.5 x 1 .5x

Pe rf ect W orld C o., Ltd. Gaming C hina Nasda qGS PWR D 997. 1 - - - - 1. 7x 9.2x 0 .5xPhotoChannel Network s Inc. D igital Imaging C anada T S XV T S XV :PN 47. 0 2.7 x 1.7x - 5.0x - 1 0.7 x 9 .8x

Quepa s a C orp. S ocia l Ne tworking Unite d S tates Nasda qCM QP SA 12. 3 - - - - - - 9 .2x

OAO RB C Information S ys tems Media R us s ia R TS R BCI 1 73. 4 0.0 x - 0.3 x - - - -

S handa Interactive E ntertainment L td. Gaming C hina Nasda qGS SNDA 3,4 26. 1 0.2 x 0.9x 0.4 x 2.0x 2. 9x 1 5.7 x 1 .3xS hutte rf ly, Inc. D igital Imaging Unite d S tates Nasda qGS S FL Y 323. 5 1.2 x - 9.1 x 7.0x - - 1 .9x

S K C ommunications Co., Ltd. S earch S outh Kore a KOS E A066270 313. 1 1.7 x - 25.8 x - - - -

S NAP Inte ra ctive , Inc. Dating Unite d S tates OT C BB S TV I 8. 1 2.2 x - 7.0 x - 10 .6x - 5 .3x

S NM Global Holdings Media Unite d S tates OT C PK SNMN 0. 0 1.1 x - - - - - -S ocia l Media Venures , Inc. S ocia l Ne tworking Unite d S tates OT C PK SMV I 0. 0 0.0 x - - - - - -

S ohu. com Inc. Gaming C hina Nasda qGS SOHU 2,1 16. 8 3.8 x 3.3x 8.7 x 7.6x 11 .9x 1 5.2 x 5 .7x

S ite search C orporation S ocia l Ne tworking Unite d S tates OT C BB ST PC 28. 2 - - - - - - 4 0.1x

S park Networks , Inc. S ocia l Ne tworking Unite d S tates AMEX L OV 56. 5 1.0 x - 4.8 x - 17 .3x - -S pectrumDNA, Inc. Media Unite d S tates OT C BB SPXA 20. 5 - - - - - - 3 1.0x

T encent Holdings L td. Porta l C hina S E HK 700 16,5 68. 2 14.8 x - 30.9 x - 39 .8x - 1 6.6x

T he Parent C ompany Media Unite d S tates OT C PK K IDS .Q 0. 3 0.2 x - - - - - -

T he 9 L imited Gaming C hina Nasda qGS NC T Y 253. 7 - - - - 0. 8x 1 0.3 x 0 .1xT he S treet.com, Inc. Media Unite d S tates Nasda qGM T S CM 62. 8 - - - - - - 0 .8x

T otal S port Online A S Media Norway OT C NO TOSO 0. 1 4.6 x - - - - - -

T ree.C om, Inc. Porta l Unite d S tates Nasda qGM TR E E 130. 5 0.6 x 0.5x - 6.4x - - 1 .7x

Unis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :US S 0. 8 0.1 x - 29.5 x - - - -United Online Inc. Media Unite d S tates Nasda qGS UNTD 605. 1 1.1 x 0.9x 5.0 x 3.6x - 1 0.0 x -

UOMO Media , Inc Media C anada OT C BB UOMO 21. 0 33.6 x - - - - - -

Va lueC lick Inc. Media Unite d S tates Nasda qGS VC LK 899. 2 1.3 x 1.5x 7.5 x 5.8x - 1 6.4 x 7 .3x

VO IS , Inc. S ocia l Ne tworking Unite d S tates OT C BB VOIS 2. 7 - - - - - - 6 .0xW ebzen Inc. Gaming S outh Kore a Nasda qGM WZEN 38. 9 - - - - - - 0 .0x

W izza rd S of twa re Corpora tion Podcas ting Unite d S tates AMEX WZE 29. 2 4.8 x - - - - - -

W orlds .com Inc. C ontent Unite d S tates OT C BB WDDD 8. 9 - - - - 30 .9x - -

W yndstorm C orporation C ontent Unite d S tates OT C BB WYND 0. 5 - - - - - - -XING AG S ocia l Ne tworking G ermany XT RA O 1BC 2 08. 1 3.1 x - 9.8 x - 20 .6x - 5 .3x

YedangOnline Corp. Gaming S outh Kore a KOS E A052770 113. 3 2.0 x - 9.0 x - 11 .9x - 5 .5x

Ynk Korea Inc. Gaming S outh Kore a KOS E A023770 13. 6 0.9 x - - - - - -

ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 3 0.6 x - - - - - -

H igh 16,5 68. 2 37.3 x 4.5x 30.9 x 1 1.5 x 39 .8x 3 1.3 x 4 0.1x

Low 0. 0 0.0 x 0.0x 0.3 x 0.0x 0. 8x 9.2x 0 .0x

Average 495.8 5.2x 1.5x 9.1x 5.9x 13.7x 14.1x 5.4xMedian 40. 2 1.8 x 1.4x 8.1 x 6.2x 11 .7x 1 2.4 x 2 .6x

Figure 20. Valuation Comparison Source. Capital IQ

Comparable C ompany Analys is > Web 2.0

Summary by Country

C ompany Name USD Market Cap ($m) Avg USD Market C ap ($m) USD LTM Total R ev ($m) USD LTM Total E B ITDA ($m) EB ITDA %

United S tates 40 C hina 33, 253.1 China 3,325. 3 United S ta tes 3, 792. 7 C hina 1,811. 5 F inland 61. 9%

C anada 11 United S tates 4, 876.9 S weden 1,907. 4 C hina 3, 607. 1 S weden 262. 4 R uss ia 46. 0%

C hina 10 J apan 2, 324.4 Ta iwan 400. 8 S weden 1, 712. 8 United S ta tes 242. 0 T aiwan 33. 7%

S outh K orea 9 C anada 1, 981.0 Japan 387. 4 C anada 983. 2 C anada 193. 5 S witz erland 26. 8%

J apan 6 S weden 1, 907.4 Canada 180. 1 S outh K orea 656. 7 J apan 135. 5 India 25. 5%

T a iwan 3 S outh K orea 1, 224.3 Rus sia 173. 4 J apan 514. 6 T a iwan 98. 4 C hina 21. 3%

A ustra lia 2 T a iwan 1, 202.4 S outh K orea 136. 0 Hong K ong 389. 9 S outh K orea 77. 4 G ermany 19. 5%

Germany 2 Germany 245.1 Hong K ong 135. 8 T aiwan 372. 3 I ta ly 36. 9 I ta ly 16. 0%

S witz erland 1 R uss ia 173.4 Ita ly 127. 7 I ta ly 230. 8 Hong K ong 30. 8 C anada 14. 5%

Hong K ong 1 Hong K ong 135.8 G ermany 122. 5 R uss ia 147. 3 India 23. 8 Ma lays ia 13. 7%

F inland 1 I ta ly 127.7 United S tates 121. 9 India 135. 5 R uss ia 19. 2 Hong K ong 7.9%

I ta ly 1 S witz erland 96.4 S witzerland 96. 4 Ma lays ia 78. 0 G ermany 11. 9 J apan 6.1%

United K ingdom 1 F inland 60.9 Finland 60. 9 G ermany 53. 0 Malays ia 10. 7 S outh K orea 3.8%

India 1 India 34.2 India 34. 2 S witz erland 40. 0 Aus tra lia 2. 8 United S ta tes -4. 6%

S weden 1 Malays ia 26.2 Malay sia 26. 2 Aus tra l ia 14. 7 S witz erland 0. 8 Norway -6. 2%

R us sia 1 Aus tra lia 20.3 Austra lia 10. 2 F inland 6. 0 Norway -1. 0 Aus tra l ia -30.3%

Malays ia 1 United K ingdom 5.2 United K ingdom 5. 2 Norway 2. 1 United K ingdom -1. 7 S weden #DIV /0!

Norway 1 Norway 0.1 Norway 0. 1 United K ingdom 0. 2 F inland -13. 4 United K ingdom #DIV /0!

Grand Total 93 Grand Total 47,694.9 Grand Total 512.8 Grand Total 12,736.8 Grand Total 2,941.5 Grand Total 8.3%

Figure 21. Comparison by Country Source. Capital IQ

Comparable C ompany Analys is > Web 2.0

Summary by Exc hange

Company Name USD Market Cap ($m) Avg USD Market C ap ($m) USD LTM Total R ev ($m) USD LTM Total EB ITDA ($m) EB ITDA %

OT C B B 20 S E HK 19, 545.5 S E HK 6,515. 2 OM 1, 712. 8 NasdaqG S 1,695. 5 H LS E 61. 9%

Nas daqG S 14 NasdaqG S 18, 072.2 OM 1,907. 4 NasdaqG S 478. 8 S E HK 599. 1 R TS 46. 0%

OT C P K 10 T S E 2, 125.6 NY S E 1,862. 2 S E HK 418. 5 OM 262. 4 G T S M 40. 9%

K OS E 7 OM 1, 907.4 Nas daqG S 1,290. 9 NY S E 233. 6 NY S E 144. 6 S W X 26. 8%

T S E 5 NY S E 1, 862.2 G TS M 440. 7 C M 230. 8 T S E 114. 5 S E HK 26. 5%

Nas daqGM 5 KOS E 1, 160.2 TS E 425. 1 R TS 147. 3 K OS E 74. 5 B S E 25. 5%

T S XV 5 G T SM 881.5 OS E 198. 8 B S E 135. 5 G T S M 52. 3 NY S E 24. 2%

T S X 4 OT CB B 379.5 R T S 173. 4 OS E 117. 5 C M 36. 9 XT RA 19. 5%

S E HK 3 NasdaqGM 270.0 K OS E 165. 7 G T S M 91. 0 B S E 23. 8 C M 16. 0%

AME X 2 T S X 258.3 CM 127. 7 K OS E 85. 1 OS E 21. 0 K OS E 15. 4%

XT RA 2 XT RA 245.1 XT R A 122. 5 NasdaqGM 80. 9 R TS 19. 2 OT CBB 14. 8%

A S X 2 OS E 198.8 S WX 96. 4 T S E 79. 4 XTR A 11. 9 T S E 14. 7%

GT S M 2 R TS 173.4 TS X 64. 6 K LS E 78. 0 K LS E 10. 7 K LS E 13. 7%

S WX 1 C M 127.7 HLS E 60. 9 S WX 40. 0 AME X 6. 3 T S XV 13. 7%

HLS E 1 S WX 96.4 Nas daqGM 54. 0 T S X 39. 3 AS X 2. 8 NasdaqC M 13. 1%

NY S E 1 AME X 82.5 AME X 41. 2 AME X 31. 7 S W X 0. 8 NasdaqG S 8.0%

CM 1 OT CP K 81.1 B S E 34. 2 XT R A 26. 5 OT CNO -1. 0 T S X -0. 4%

B S E 1 T S XV 67.7 K LS E 26. 2 OT CP K 19. 0 AIM -1. 7 OT CNO -6. 2%

Nas daqCM 1 HLS E 60.9 OTC B B 20. 0 T S XV 9. 5 T S X -3. 5 OT CPK -9. 6%

OS E 1 B S E 34.2 TS XV 13. 5 AS X 7. 3 T S XV -10. 2 NasdaqGM -28.1%

A IM 1 K LS E 26.2 Nas daqCM 12. 7 H LS E 6. 0 NasdaqC M -11. 4 OS E -28.2%

OM 1 AS X 20.3 AS X 10. 2 OT CNO 2. 1 NasdaqGM -12. 2 AS X -30.3%

R TS 1 NasdaqC M 12.7 OTC P K 8. 1 OT CB B 1. 8 H LS E -13. 4 AME X #DIV /0!

K LS E 1 AIM 5.2 AIM 5. 2 AIM 0. 2 OT CPK -33. 1 AIM #DIV /0!

OT C NO 1 OT CNO 0.1 OTC NO 0. 1 NasdaqC M 0. 1 OT CBB -43. 8 OM #DIV /0!

Grand Total 93 Grand Total 47,694.9 Grand Total 518.4 Grand Total 149.8 Grand Total 2,946.1 Grand Total 8.3%

Figure 22. Comparison by Exchange Source. Capital IQ

Financing - Last Three Months (US$ m)

Month Company Name C ountry Angel/S eed Debt financ ing PIPE S er ies A S eries B S er ies C S eries D S eries E G rand Total

Mar-09 Kaixin001.com C hina 20. 0 20. 0

Vidyo U S A 15 .0 15. 0

Buzznet U S A 12 .5 12. 5

LendingClub U S A 12. 0 12. 0

SendMe Inc . U S A 12. 0 12. 0

Auditude U S A 10. 5 10. 5

Glam Media U S A 10.0 10. 0

Vis ible Meas ures U S A 10 .0 10. 0

SuperS ec ret U S A 10. 0 10. 0

GoViral U K 8.8 8.8

Greys tripe U S A 5. 5 5.5

OMGP OP U S A 5. 0 5.0

Apture U S A 4.1 4.1

S imulmedia U S A 4.0 4.0

Tynt C anada 3.9 3.9

AnyS ource Media U S A 3.2 3.2

Pixazza U S A 3.1 3.1

Bit.ly U S A 2.0 2.0

Hunch U S A 2.0 2.0

Sports Compos ite DE U S A 2. 0 2.0

AdultS pace U S A 1. 3 1.3

Myngle Netherlands 1. 3 1.3

33Acros s U S A 0. 8 0.8

Three Melons Argentina 0.6 0.6

Mar-09 T otal 1.3 1.3 0.6 41.1 50.3 43 .0 12.0 10.0 159.5

A pr-09 Co llec tive Media U S A 20. 0 20. 0

GOOM R adio F rance 16. 0 16. 0

Marin S oftware U S A 13. 0 13. 0

The R ubicon P rojec t U S A 8. 0 5. 0 13. 0

FreeWheel U S A 12 .0 12. 0

Cellu fun U S A 10. 0 10. 0

Conductor Inc . U S A 10. 0 10. 0

S canS cout U S A 8. 1 8.1

Viximo USA 5. 0 5.0

DoubleTwis t U S A 5. 0 5.0

IMS hopping U S A 4.7 4.7

Soc ialtext U S A 4.5 4.5

Mixercas t U S A 4. 1 4.1

SoundCloud G ermany 3.3 3.3

TubeMogul U S A 3.0 3.0

Tr ibal Nova C anada 2. 5 2.5

Tr ipbas e U S A 2.0 2.0

Soc ialcas t U S A 1.4 1.4

Brandtology S ingapore 1.4 1.4

S can & Target F rance 1. 3 1.3

J odange U S A 1. 2 1.2

Foodis ta U S A 0.6 0.6

Apr-09 T otal 15.6 8.0 45.3 52.5 16 .1 12.0 149.5

May-09 Cyberplex Canada 12. 9 12. 9

Imeem USA 8. 8 8.8

EveryZing USA 8. 3 8.3

BlogHer Inc. USA 7. 0 7.0

Gist USA 6.8 6.8

Fuhu Inc. USA 6. 3 6.3

Azuki Systems USA 6.0 6.0

I Love Rewards Canada 5. 9 5.9

DocuSign USA 5.0 5.0

OLX USA 5. 0 5.0

TimeBridge USA 5. 0 5.0

Medialets USA 4. 0 4.0

Resonate Networks USA 2.0 2.0

Mo'Minis Israel 1.5 1.5

May-09 T otal 12.8 12.9 16.3 17.2 20 .3 5.0 84.3

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

Company Des c riptions - C urrent Month C apital Market Ac tivity

Company HQ Webs ite Des cription

Azuki sys tems United S ta tes www. azuk is ys tems .com P eerMeta provides web-e nabled mobile devices and s ervices . The company develops applications around iGoogle, F acebook, MyS pace and

Y ahoo. P eerMeta is bas ed in B oston, Mass achus etts .

B logHer, Inc . United S ta tes www. blogher. com B logHer I nc. operates an online community and media network for women. I t offers a s eries of live events and conferences, as well a s an

advertis ing network of blog a ffilia tes. The company has a stra tegic-partnership with iV illage. B logHer I nc. was founded in 2005 and is bas ed

in R edwood City, Ca lifornia .

C yberplex C anada www. cyberplex. com Cyberplex Inc . provides W eb advertis ing s olutions and on-line customer acquisition strategies for Fortune 1000 companies and s mall to mid-

siz ed bus ines ses in C anada and the Uni ted S ta tes . Its W eb A dvertis ing divis ion provides performance-bas ed Inte rnet advertising s olutions to

acquire leads , drive sign-ups , downloads, inquirie s, or acquire paying customers. T he company’s T echnology S ervices div ision compris es

ma nagement and technology consu ltants to as sis t c lients in the a reas of applica tions lifecycle; and re-engineering and optimization of

technologies , developing and delivering applica tions us ing the productions and technologies, and monito ring and supporting applications to

ensure performance and reliability. C yberplex a ls o prov ides technology s olutions, s uch as s ys tem integra tion, enterprise content

ma nagement, data management and reporting, W eb content management, bus iness proces s management, enterprise s earch, and spec ial

engagement offerings; and W eb design s olutions , which include pre-designed, cus tom designed, and ecommerce s olutions. I t s erves

advertisers , publis hers, and agenc ies. The company was formerly k nown as NewP ath Capita l Corporation and changed its name to C yberplexDocuS ign United S ta tes www. docusign. com DocuS ign, I nc. p rov ides s oftware services for electronic s ignature and electronic contrac t executi on (E C E ). It offers P rofess ional E d ition,

which enables individua ls and bus iness es to s end their documents for signature; C orporate E dition, an elec tronic signature and contrac t

execution s olution that au tomates the proces s of manua lly s ending, si gning, tracki ng, and s toring documents ; and DocuS i gn C onnect, a

suite of integration services to extend DocuS ign P la tform capabilities into exis ting s ys tems or new applica tions . The company a ls o provides

Connec t for S ales force, which enables us ers to s end documents ; capture contract and envelope data ; view various contract s tatus and data

in the dashboard tab enabling vis ibility into va rious contract ac tiv ity acros s the entire organiz a tion; and extent form data prov ided during the

signing process by automatica lly injecting it into S a les force Objects eliminating the need to rek ey data . I t s erves indus tries, s uch as

agriculture, bio-technology , bus iness s ervices , construction, consulting, consumer electronics , debt s ettlement, education, engineering,

financ ia l services gaming, government, hardware, healthcare, ins urance, leasing, manufacturing, mining, mortgage, non-profit pharmaceutica l

E veryZing United S ta tes www. everyzing. com E veryZing Corp. is a podcas t sea rch engine that lets the user s ea rch audio of both audio and video podcasts. The company was founded in

2006 as P odZinger Corp. and changed its name to E veryZ ing Corp. in 2007. E veryZ ing is bas ed in C ambridge, Mas sachus etts . E veryZ ing

Corp. is a s ubsidia ry of B B NT S olutions , LLC .

FUHU United S ta tes www. fuhu.com FUHU produces v irtua l identity cards and rich media web widgets . FUHU ’s miss ion is to give us ers control over their stuff (photos , content,

identity, email addres ses ) by mak ing it u nivers a lly acces sible, s hareable and manageable anywhere, anytime.

Gis t United S ta tes www. gis tworld.com G ist L td. prov ides s upply cha in s olutions for grocery , retail, elec tronics , gas , and chemica l indus tries . It offers s trategic supply chain

trans formation, s upply cha in planning, bus iness modeling, network design, warehouse s olutions , and distribution s olutions . T he company

a lso provide s inbound and outbound management; network operations , such as network design and optimiza tion, s olution delivery, s upply

cha in operations, and primary distribution; cus tomer fulf ilment, which inc ludes phys ical replenis hment, reverse logis tic s, and va lue-add

services ; and change management. T he company was formerly known as B OC Dis tribution S ervices L imited and changed its name to G ist

L td. in J une, 2001. T he company was incorporated in 1951 and is headquartered in B asings toke, U nited K ingdom. I t has operations in

E urope, As ia , Aus tra las ia , and North America . G ist L td. opera tes as a subs idia ry of T he B O C G roup L td.

Imeem United S ta tes www. imeem. com Imeem, Inc. opera tes as an online communi ty for mus icians , direc tors , photographers, and groups. It enables users to c reate audio, v ideo,

and photo playlis ts ; s hare their favorites ; discover new content; track their films; create and view play lists of their favorite shots; track their

photos ; s hare a lbums with their f ri ends; hold group di scuss ions ; change their profile info; upload new photo albums; pos t new v ideos, or

mu sic ; and write blogs , or comments . The company was founded in 2004 is bas ed in S an Francis co, C a liforn ia .

I Love R ewards C anada www. iloverewards. com I Love R ewards, Inc ., an incentive marketing company , engages in the design, development, and implementation of incentive s olutions for

companies and bus iness es in the United S ta tes and C anada. I t offers online rewards and employee recognition, s ales incentives, cus tomer

loya lty, dea ler incentives, not for profit, and cus tom solutions . The company prov ides its solutions through a W eb-bas ed engine and focuses

on employee moti va tion, cus tomer loya lty, and va lued behaviors . I Love R ewards, Inc. was founded in 1995 and is bas ed in T oronto, C anada

with an additional office in New Y ork, the United S ta te s.

Medialets United S ta tes www.media lets . com Media lets is a creative advertis ing network for native mobile applications . Launched on J uly 11th, 2008, Media lets works with agencies,

brands and application developers to define and deploy ad formats that tap into a ll of the capabili ties of the iP hone. Medialytics , Medialets ’

free analytic s and reporting solution, is the leading analytics and advertis ing solution for the world’s mos t downloaded iP hone applica tions .

Media lets is a privately-held company with offices in New Y ork , NY and S an F rancis co, CA

Mo'Minis I s rael www.momini s . com Mo’Minis platform allows adva nced as well as non-s killed developers to rapidly create origina l qua lity games from sc ra tch, without the need

of programming, and have them s eamles s ly supported on a wide range of mobile handsets . Furthermore, developers can collaborate, share

game as sets with Mo’Minis developers ’ community members and enjoy monetiza tion through Mo’Minis va rious dis tribution channel s.

OL X United S ta tes www. olx. com OLX, Inc . opera tes a c las sified site. Its s ite a llow us ers to sea rch for sale products , inc luding anima ls , babies, a rt products, books , cameras ,

CDs, cell phones, clothes, computers , DVDs , electronic s, hea lth and beauty products , home products , jewelry, musi ca l instruments , s porting

goods, tic kets , toy s, and v ideo games, as well as cars, ca r pa rts , boats , motorcycles , and other vehic les. T he company’s s ite a ls o enables

users to find accounts, adverti sing, a rts , clerica l, customer s ervice, education, engineering, hea lthcare, human res ource, Internet, legal,

ma nua l labor, manufacturing, marketing, non-profit, rea l es tate, restaurant, reta il, s a les , and technical jobs ; and s earch for various serv ices,

such as babys itter, casting, event, computer, hea lth, horos copes , moving, repa ir, writing, editing, and transla ting, as well a s find personals ;

community ac tivities ; computer, language, music , and tutor c lass es ; and apartments , offices, and park ing s pots. OLX was founded in 2006

and is based in New Y ork , New Y ork .

R esonate Networks United S ta tes www. res onatenetwork s. com R es onate Netwo rk s is an online advertising network that was created to help public a ffa irs , political and corporate advertis ers and agencies

mo re prec isely target and reach web users , bas ed on thei r a ttitudes and iss ue pos itions on a wide range of topic s .

T imeBridge United S ta tes www. timebridge. com Timebridge, Inc. offers personal s cheduling manager that enables profess iona ls to s chedule their time. The company ’s one-s tep scheduling

a llows s cheduling meetings with la rge groups or individua ls ac ros s time zones , calendaring s ys tems , and companies. It a llows us ers to

schedule meetings and share thei r ava ilability with others , a s well as connec t direc tly with calendars , inc luding Outlook and G oogle

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

RELEVANT DISCLOSURES APPLICABLE TO: NONE

L IST OF D IS CLOS URE TE RMS :

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 (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.

In format i on about Research Capi ta l Corpora t i on ’s Rat i ng Sys tem, the dis t r i bu t i on o f our research to c l ien ts and the percen tage o f recommendat i ons whi ch are in each o f our rat i ng ca tegor i es i s avai labl e on our web si te a t www. researchcapi ta l . com.

The in format i on con tai ned i n th i s report has been drawn f rom sources bel i eved to be re l i able but i t s accuracy o r comple teness is no t guaranteed , nor i n p rovi d i ng i t does Research Capi ta l Corpora t ion assume any responsib i l i ty o r l iabi l i ty . Research Capi ta l Corpora t ion , i t s d i recto rs , o f f i cers and o ther employees may, f rom t ime to t ime, have posi t ions i n the secur i t ies ment i oned herein . Conten ts o f th i s report cannot be reproduced i n who le or i n par t wi thou t the expressed permissi on o f Research Capi ta l Corporat i on. (U.S. Ins t i tu t ional Cl ien ts — Research Capi ta l U.S.A. Inc. (a whol l y owned subsid i ary o f Research Capi ta l Corpora t ion) accep ts responsib i l i t y fo r the contents o f th i s repor t sub jec t to the terms & l imi tat i ons se t out above . F i rms o r i ns t i tu t i ons recei v i ng th i s repor t should e f fect t ransact i ons in secur i t i es d i scussed i n the repor t through Research Capi ta l U.S.A. Inc. , a Broker-Dealer Regis te red wi th the Uni ted Sta tes Secur i t ies and Exchange Commissi on) .

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