09 08 11 web 2.0 weekly

SOFTWARE & SERVICES 11 AUGUST 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

DOWN ROUNDS EXCEEDED UP ROUNDS ( IN THE VALLEY) FOR THE SECOND QUARTER SINCE Q4/03

DOWN ROUNDS EXCEEDED UP ROUNDS 46% TO 32% Down rounds (defined as when a company is valued less than it was during its previous fundraising) exceeded up rounds 46% to 32%, with 22% flat for the second quarter. This is from a survey by Sil icon Valley venture capital f irm Fenwick & West LLP. These numbers are sl ightly better than Q1/09 when down rounds outpaced up rounds 46% to 25%. According to Fenwick & West, the last two quarters are the first since Q4/03 in which down rounds exceeded up rounds.

As investors (VCs) are busy focusing on portfol io companies, they dedicate less time and money to new investments and in today’s credit markets, where cash is king, there is a great urgency to conserve as much cash as possible. Moreover, venture capitalists are raising less from their investors. With stock market valuations improving, as shown in Figure 5, we expect valuations in private investments to improve, albeit gradually.

Total capital raised in August (so far) is $94.4 million: Gaming company Turbine, Inc. raised $50 mill ion in August. RichRelevance, a company that offers comment/opinion on ecommerce sites, was a distant second at $12.5 mil lion in August. Total capital raised in July on 31 transactions was $178.7 mill ion, averaging $5.8 mil lion, and June was $196.1 mil lion, averaging $4.9 mil lion. The average for August, month-to-date so far, is $7.4 mill ion.

Financing Activity Last Three Months

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A mixed price performance 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 negative returns on the week. Fluid Music Canada, Inc (TSX:FMN) led the group with a 31.1% return, while NetDragon Websoft, Inc. (SEHK:777) had the worst return, dropping 12.0% 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-one public Web 2.0 companies identified: Our Web 2.0 universe contains 91 companies, with a combined market cap of ~$63 bill ion (Figure 1). The median market cap for the group is ~$61 mill ion, with average trail ing revenue of ~$157.3 mill ion (median $56.2 mill ion). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a valuation basis, the overall average is 5.0x trai ling revenue (median 1.9x) and 11.1x trai ling EBITDA (median 9.8x). Twenty-one of the companies have more than 500 employees.

Comparable Company Analys is > Web 2.0

Company Name LTM as of Ticker E xchange

Trading

Currency HQ

Current

Price

USD Market

Cap ($m)

USD LTM Total

Rev ($m)

USD LTM Total

E B ITDA ($m)

EB ITDA

%

TEV/LTM

Revenue

TEV/LTM

E B ITDA EmployeesAccelerize New Media , Inc. 3/31/2009 AC LZ OTCB B US D United S ta tes 0.57 15.8 4.1 (4.4) NM 5.1x - 11

Actoz S oft C o. , Ltd. 3/31/2009 A052790 K OS E KR W S outh K orea 23,550 165.3 94.0 20.4 21.7% 1.4x 6.6x NA

AQ Interactive, Inc. 3/31/2009 3838 T S E J P Y J apan 53,600 29.9 63.5 4.0 6.3% 0.0x 0.3x NA

Associated Media Holdings Inc. 6/30/2007 AS MH OTCP K US D United S ta tes 0.01 0.6 0.1 (2.3) NM 15.6x - 3

B igs tring C orp. 3/31/2009 B S GC OTCB B US D United S ta tes 0.03 1.3 0.1 (2.0) NM 35.7x - 4

B etawave C orporation 3/31/2009 BW AV OTCB B US D United S ta tes 0.08 2.2 8.4 (12.6) NM - - 53

B eyond C ommerce, Inc. 3/31/2009 B YOC OTCB B US D United S ta tes 0.30 13.5 7.1 (9.5) NM 2.6x - 69

B right Things plc 9/30/2008 AIM:B G T AIM GB P United K ingdom 0.02 4.8 0.3 (1.9) NM 17.6x - 9

B roadWebAs ia Inc. 9/30/2008 BW BA OTCP K US D United S ta tes 0.23 19.5 0.0 (4.6) NM - - 46

CDC C orp. 3/31/2009 CHIN.A NasdaqGS US D Hong K ong 2.76 292.3 389.9 30.8 7.9% 0.8x 9.9x 2,227

C hangyou.com L imited 6/30/2009 C YOU NasdaqGS US D China 39.35 2,164.4 241.2 147.2 61.0% 7.8x 12.8x 628

C hina Ga teway C orporation 9/30/2008 CGW Y OTCP K US D United S ta tes 0.02 0.3 6.7 (6.6) -98.9% 0.0x - 37

C hinese G amer Interna tiona l 3/31/2009 G T S M:3083 G T S M TWD T aiwan 430 1,101.7 56.3 31.5 56.0% 18.4x 32.9x NA

C LIC K E R Inc. 5/31/2009 C LK Z OTCB B US D United S ta tes 0.01 0.6 2.5 (1.2) -45.8% 0.3x - 22

C ornerWorld C orpora tion 1/31/2009 CW R L OTCB B US D United S ta tes 0.06 3.5 1.3 NM NM 3.8x - NA

C yberplex Inc. 3/31/2009 T S X:C X T S X CAD Canada 2 102.3 75.2 7.8 10.3% 1.3x 12.6x NA

DADA S pA 3/31/2009 CM:DA CM E UR Italy 6.10 139.8 237.6 34.8 14.6% 0.8x 5.5x 578

DXN Holdings B hd 2/28/2009 DXN K LS E MYR Ma lays ia 0.47 30.9 78.9 10.9 13.8% 0.6x 4.1x NA

Dibz International, Inc. NA DIB Z OTCP K US D United S ta tes 0.00 0.0 NA NM NM - - NA

Digita lP os t Interactive, Inc. 3/31/2009 DGLP OTCB B US D United S ta tes 0.06 4.4 0.7 (2.6) NM 8.2x - 7

Digita lT own, Inc. 5/31/2009 DGTW OTCB B US D United S ta tes 1.30 35.6 NM (2.5) NM - - 3

Dolphin Digita l Media , Inc. 3/31/2009 DPDM OTCB B US D United S ta tes 0.40 20.7 0.8 (3.7) NM 28.0x - NA

E olith Co. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 820 48.4 15.0 (3.5) -23.6% 3.4x - NA

E xtens ions , Inc. 3/31/2009 E XT I OTC P K US D United S ta tes 0.20 8.9 NM NM NM - - 2

F luid Mus ic Canada , Inc. 3/31/2009 T S X:FMN T S X CAD United S ta tes 1.18 57.2 5.0 (6.9) NM 9.7x - NA

F rogs ter Interactive P ictures AG 12/31/2008 F R G XT R A E UR Germany 14.50 51.8 3.2 (6.2) NM 15.4x - NA

G amania Digita l E ntertainment C o. , Ltd. 3/31/2009 6180 G T S M TWD T aiwan 58.00 268.3 126.2 21.0 16.6% 1.9x 11.7x NA

G ameOn C o Ltd. 3/31/2009 3812 T S E J P Y J apan 103,700 103.0 75.6 17.9 23.7% 0.6x 2.4x NA

G eoS entric Oyj 3/31/2009 G E O1V HLS E E UR F inland 0.05 63.5 6.0 (15.5) NM 9.9x - 108

G iant Interactive G roup, Inc. 3/31/2009 GA NY S E US D China 8 1,818.1 218.9 NM NM - - 1,570

G igaMedia Ltd. 3/31/2009 G IGM NasdaqGS US D T aiwan 4.94 269.3 183.6 NM NM 1.1x - 751

G ravity Co. , Ltd 3/31/2009 GR V Y NasdaqGM US D S outh K orea 2.10 58.4 46.6 12.8 27.5% - - 469

G ree, Inc. 6/30/2009 T S E :3632 T S E J P Y J apan 7 ,740 1,779.8 143.3 86.1 60.1% 11.7x 19.4x NA

GungHo Online E ntertainment, Inc. 3/31/2009 3765 OS E J P Y J apan 202,000 237.7 105.9 19.0 18.0% 2.0x 11.0x NA

HanbitS oft, Inc. 3/31/2009 A047080 K OS E KR W S outh K orea 4 ,305 76.8 56.2 (15.1) -26.8% 1.1x - NA

IAC /InterActiveC orp. 6/30/2009 IAC I NasdaqGS US D United S ta tes 18.50 2,449.4 1,392.3 52.7 3.8% 0.5x 13.5x 3,200

IAS E nergy, Inc. 1/31/2009 IAS C .A OTCB B US D C anada 0.18 12.6 0.0 (0.8) NM - - NA

is eemedia Inc. 3/31/2009 IE E T S XV CAD Canada 0.07 3.3 1.6 (5.1) NM 1.5x - NA

J umbuck E nterta inment P ty Ltd. 12/31/2008 AS X:J MB AS X AUD Aus tralia 0.37 15.1 15.0 5.6 37.2% 0.7x 1.8x 72

K AB Dis tribution Inc. 3/31/2009 T S X:K AB T S X CAD Canada 1 82.7 76.0 9.0 11.9% 1.2x 9.7x NA

K ingsoft C o. Ltd. 3/31/2009 3888 S E HK HKD China 8 1,134.8 129.0 52.0 40.3% 8.7x 21.7x 2,271

L ingo Media C orporation 3/31/2009 T S XV :LM T S XV CAD Canada 1.12 12.9 0.9 (1.6) NM 12.4x - NA

L iveW orld Inc. 3/31/2009 LVWD OTCP K US D United S ta tes 0.06 1.9 11.4 (0.0) -0.4% 0.1x - NA

LookS mart, Ltd. 6/30/2009 LOOK NasdaqGM US D United S ta tes 1.25 21.4 56.8 (4.7) -8.2% - - 90

Magnitude Information S ys tems Inc. 3/31/2009 MAGY OTCB B US D United S ta tes 0.01 2.7 0.1 (3.1) NM - - 14

Mixi, Inc. 6/30/2009 2121 T S E J P Y J apan 618000.00 976.1 125.7 42.4 33.8% 6.9x 20.4x NA

Modern T imes G roup Mtg AB 6/30/2009 MTG B OM S E K S weden 293.00 2,662.8 1,893.2 290.9 15.4% 1.7x 11.1x 2,969

MOKO.mobi L imited 12/31/2008 MK B AS X AUD Aus tralia 0.07 4.7 1.2 (2.5) NM 2.9x - NA

Myriad G roup AG 12/31/2008 MY R N S W X CHF S witzerland 4.12 80.9 40.0 0.8 1.9% 2.3x - 405

NE OW IZ G ames Corpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 31850.00 545.9 201.6 54.1 26.8% 2.7x 9.9x NA

NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HKD China 6 390.1 86.9 34.4 39.5% 2.9x 7.4x 2,426

Netease.com Inc. 3/31/2009 NT E S NasdaqGS US D China 45.36 5,870.8 470.4 305.7 65.0% - - 3,109

NeuLion Incorporated 3/31/2009 T S X:NLN T S X CAD Canada 1.06 111.7 18.1 (11.8) -65.2% 5.5x - 237

NeXplore C orporation 6/30/2008 NXP C OTCP K US D United S ta tes 1 39.0 0.7 (6.2) NM - - NA

Ngi G roup Inc. 3/31/2009 2497 T S E J P Y J apan 32200.00 41.0 90.7 10.9 12.0% 0.0x 0.1x NA

Northgate T echnologies L imited 6/30/2009 590057 B S E INR India 35.20 25.7 83.2 (41.6) -50.0% 0.3x - NA

Open T ext C orp. 3/31/2009 OT E X NasdaqGS US D C anada 38.44 2,022.8 782.6 199.2 25.5% 2.7x 10.5x 3,400

Openwave S ys tems Inc. 6/30/2009 OPW V NasdaqGS US D United S ta tes 2.62 218.3 191.7 5.3 2.8% 0.6x 20.6x NA

P erfect W orld C o. , Ltd. 3/31/2009 PW R D NasdaqGS US D China 37.40 1,819.0 228.0 124.5 54.6% 0.5x 0.9x 2,096

P NI Digita l Media Inc. 3/31/2009 T S XV :P N T S XV CAD Canada 1.48 46.8 20.0 0.5 2.3% 2.3x - NA

Quepasa C orp. 3/31/2009 QP S A OTCB B US D United S ta tes 1 15.9 0.1 (10.8) NM - - 74

OAO R B C Information S ys tems 12/31/2007 R B C I R T S US D R us s ia 1.05 145.7 148.8 19.4 13.1% 0.0x 0.2x NA

S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA NasdaqGS US D China 49.96 3,335.8 569.9 260.8 45.8% - - 3,124

S hutterfly, Inc. 6/30/2009 S FLY NasdaqGS US D United S ta tes 15.89 404.5 218.6 27.3 12.5% 1.6x 12.5x 514

S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 10100.00 344.7 187.4 12.2 6.5% 1.8x 28.3x NA

S NAP Interactive, Inc. 3/31/2009 S T V I OTC B B US D United S ta tes 0 4.3 3.3 0 .9 28.0% 0.9x 3.1x 11

S NM G loba l Holdings 9/30/2008 S NMN OTCP K US D United S ta tes 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 OTC P K US D United S ta tes 0 0.0 0.1 (0.1) -60.6% 4.5x - NA

S ocialwis e, Inc. 3/31/2009 S C LW OTCB B US D United S ta tes 0.74 32.1 0.0 (4.8) NM - - NA

S ohu.com Inc. 6/30/2009 S OHU NasdaqGS US D China 64.00 2,453.4 485.1 209.4 43.2% 4.0x 9.3x 3,197

S park Networks , Inc. 3/31/2009 LOV AME X US D United S ta tes 3 56.1 54.3 11.8 21.7% 1.0x 4.8x 183

S pectrumDNA, Inc. 3/31/2009 S P XA OTCB B US D United S ta tes 0 10.7 0.1 (2.6) NM - - 7

T encent Holdings Ltd. 3/31/2009 700 S E HK HKD China 111 25,897.8 1,203.1 582.7 48.4% 23.6x 48.8x 6,123

T he P arent C ompany 8/2/2008 K IDS .Q OTCP K US D United S ta tes 0.02 0.4 112.0 (13.5) -12.0% 0.2x - 347

T he9 L imited 12/31/2008 NC T Y NasdaqGS US D China 9.38 239.2 250.3 85.4 34.1% - - 1,626

T heS treet. com, Inc. 3/31/2009 T S CM NasdaqGM US D United S ta tes 2.30 70.4 67.0 1.9 2.9% 0.1x 3.0x 310

T ota l S port Online AS 3/31/2006 TOS O OTCNO NOK Norway 0.03 0.1 2.2 (1.1) -50.6% 4.6x - 16

T ree.C om, Inc. 6/30/2009 T R E E NasdaqGM US D United S ta tes 9.88 106.7 216.6 (1.0) -0.4% 0.5x - 700

Unis erve C ommunica tions C orp. 2/28/2009 T S XV :US S T S XV CAD Canada 0.05 1.0 24.0 0.1 0.2% 0.2x - NA

United Online Inc. 6/30/2009 UNTD NasdaqGS US D United S ta tes 7.55 633.0 949.8 206.2 21.7% 0.9x 4.4x 1,469

UOMO Media , Inc 1/31/2009 UOMO OTCB B US D C anada 0 12.9 0.6 (0.5) -78.2% 20.8x - NA

V alueC lick Inc. 6/30/2009 V C LK NasdaqGS US D United S ta tes 11 948.2 563.6 99.1 17.6% 1.4x 8.2x 1,189

V OIS , Inc. 3/31/2009 VOIS OTCB B US D United S ta tes 0 4.4 0.0 (1.1) NM - - 4

W ebzen Inc. 3/31/2009 W ZE N NasdaqGM US D S outh K orea 3.28 38.8 23.4 (0.6) -2.4% - - NA

W izzard S oftware C orporation 3/31/2009 W ZE AME X US D United S ta tes 0.47 22.5 5.6 (5.3) -94.5% 4.3x - 110

Worlds . com Inc. 3/31/2009 WDDD OTCB B US D United S ta tes 0.09 4.7 0.0 (0.8) NM - - 1

W oozyF ly, Inc. 3/31/2009 W ZYF OTCB B US D United S ta tes 0.15 2.6 NM NM NM - - NA

W ynds torm Corpora tion NA W YND OTCP K US D United S ta tes 0.10 1.8 NA NM NM - - NA

XING AG 3/31/2009 O1B C XT R A E UR Germany 26.70 199.0 53.5 16.7 31.2% 2.7x 8.8x 239

Y edangOnline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 9 ,440 120.7 55.8 12.0 21.6% 2.4x 10.9x NA

Ynk K orea Inc. 3/31/2009 A023770 K OS E KR W S outh K orea 4 ,910 21.4 10.7 (0.8) -7.6% - - NA

High 25,897.8 1,893.2 582.7 65.0% 35.7x 48.8x 6,123

Low 0.0 0.0 -41.6 -98.9% 0.0x 0.1x 1

Average 696.6 157.3 35.6 6.9% 5.0x 11.1x 905Median 60.9 56.2 0.9 13.1% 1.9x 9.8x 405

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 )

Total capital raised in August (so far) is $94.4 million: Online gaming company Turbine, Inc. raised $50 mill ion in August – the largest transaction in August. RichRelevance, a company that offers comment/opinion on ecommerce sites, was a distant second at $12.5 mill ion. Total capital raised in July on 31 transactions was $178.7 mill ion, averaging $5.8 mil lion, and June was $196.1 mill ion (averaging $4.9 mill ion). The average for August, month-to-date so far, is $7.4 mil lion.

Financing Activity Last Three Months

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

Turbine, Inc. raises $50 million: On the capital raise front, Turbine, Inc. raised $50 mil lion, the largest transaction so far in August. RichRelevance was a distant second securing a $12.5 mill ion round. Closely behind was Traffiq (a company that offers display advertising on a digital media platform) raising $10 mill ion. All other transactions (three from a total of eight) were below $10 mill ion each, with the total for August so far at $94.4 mil lion. In addition, Friends Reunited was acquired for $42 mil lion. For additional details on financings, see Figures 23 and 24 (at end of note).

Financing & M/A Summary - Last Three Months

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

Ad Network remains the most active sector in dollars raised: Following recent trends, Ad Networks as a sector saw the most activity in dollars raised ($126.4 mill ion), fol lowed by the Social Network sector with 12 transactions, raising $99.6 mill ion (Figure 4).

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

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

Web 2.0 index far outpaces NASDAQ recovery: Our Web 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 unti l earlier this year. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

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

Figure 5. Web 2.0 Price Performance Source. Capital IQ

A mixed price performance 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 negative returns on the week. Fluid Music Canada, Inc (TSX:FMN) led the group with a 31.1% return, while NetDragon Websoft, Inc. (SEHK:777) had the worst return, dropping 12.0% in the week.

1 Week Price Performance

-12.0%-11.2%

-9.6%-9.4%

-8.0%-7.4%-7.1%-6.9%-6.7%

-5.4%-5.0%-4.7%

-3.0%-2.7%-2.7%-1.9%-1.8%-1.7%-1.3%-1.2%-1.0%-0.7%-0.3%-0.1%

0.1%0.2%0.3%0.5%0.6%0.8%1.2%1.6%1.7%1.9%2.0%2.5%

4.2%4.7%4.8%5.4%6.2%6.4%

8.3%11.1%

12.8%14.4%

25.0%27.7%

31.1%

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

NetDragon WebSoft, Inc .NEOWIZ Games Corporation

AQ Interac tive, Inc .Mix i, Inc .

A ctoz S oft Co. , Ltd.V a lueClick Inc .

Digita lTow n, Inc .CDC Corp.

Webzen Inc .Northgate Technologies L imited

K ings of t Co. Ltd.Y nk Korea Inc .HanbitS oft, Inc .

XING AGNgi Group Inc .

G iant Interac tive Group, Inc .Eolith Co. Ltd.

Gamania Digital Enterta inment Co. ,PNI Digita l Media Inc .Neteas e.com Inc .G igaMedia Ltd.

Perfect World Co. , Ltd.Tree.Com, Inc .

IAC/InterActiveCorp.S handa Interac tive Entertainment Ltd.

GameOn Co Ltd.DADA S pA

Myriad Group AGCyberplex Inc .

Open Tex t Corp.Tencent Holdings Ltd.

LookSmart, Ltd.S hutterf ly , Inc .The9 L imited

S ohu.com Inc .Gree, Inc .

Quepas a Corp.S K Communications Co. , Ltd.

Openw ave S ys tems Inc .Chines e Gamer InternationalModern T imes Group Mtg A B

Changyou.com LimitedFrogs ter Interactive Pictures AG

TheS treet.com, Inc .S park Netw orks , Inc .Y edangOnline Corp.

Gravity Co. , LtdNeuLion Incorporated

Fluid Mus ic Canada , 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 )

Key DevelopmentsCompany Headline Notes

Openwave S ys tems Inc.

(NasdaqGS :OPWV)

Tels tra S elects Openwave Mobile Ana lytics of Openwave

S ys tems Inc

Openwave S ys tems Inc. announced that T els tra has s elected Openwave Mobile Analytics , a solution that provides T els tra a das hboard view

of all as pects of aggregated mobile s ubscriber data activity, leveraging a pla tform of intelligent analytics and rich reporting capabilities acros s

its mobile device portfolio, including smartphones and feature phones , iP hone traffic, netbooks and other mobile-capable devices . Openwave

Mobile Ana lytics empowers T els tra to aggregate s ubs criber data and behaviora l information acros s a variety of data s ources , including on

porta l and open internet brows ing, mobile email mes saging, video and audio s treaming, device type, demographics and location to provide a

360-degree view of their mobile subs criber bas e. Openwave Mobile Analytics a lso provides T els tra with ins ight into the operational as pects

of their mobile broadband network , a llowing them to control network operations more efficiently by optimiz ing present capacity and managing

ongoing bandwidth demands .

Accelerize New Media, Inc.

(OTCBB :ACLZ)

Accelerize New Media Inc. Adds Two New C lients for

P erformance-B as ed Marketing C ampaigns

Accelerize New Media Inc. announced that it has partnered with Guzov O fs ink, LLC and with a multinational education company to provide

performance-bas ed marketing services to generate new bus ines s via www.S E C F ilings .com. S E C F ilings . com ta rgets a niche audience within

a highly coveted financial demographic that includes senior executives , financial profes s ionals , and inves tors by providing free rea l-time

acces s to over 7 million S E C filings dating back to 1994.

LookSmart, L td. (NasdaqGM:LOOK) LookS mart Ltd. Announces Unaudited Consolidated

F inancial R es ults for the S econd Quarter and S ix Months

E nded J une 30, 2009 ; R ecords Impairment C harge

LookS mart L td. announced unaudited consolidated financia l res ults for the second quarter and s ix months ended J une 30, 2009. R evenues

for the second quarter of 2009 were $13.2 million, a 23% decreas e from $17.1 million in the s econd quarter of 2008. Net los s for the second

quarter of 2009 was $1.3 million, or $0.08 per bas ic and diluted s hare. T his is compared to a net los s for the s econd quarter of 2008 of $0.2

million or $0.01 per bas ic and diluted s hare. Los s from continuing operations for the second quarter of 2009 was $1.4 million or $0.09 per

bas ic and diluted s hare, which includes a $0.2 million impairment charge and $0.2 million of expens es related to the evaluation of s tra tegic

growth alternatives . T his compares to a los s from continuing operations in the second quarter of 2008 of $0.04 million. Non-GAAP net los s

(net los s before dis continued operations and excluding s tock bas ed compens ation and impairment charges ) for the second quarter of 2009

was $0.7 million compared to non-GAAP net income of $0.5 million in the second quarter of 2008. C apital expenditures , including

capita lization of internally developed s oftware, in the second quarter of 2009 were $0.4 million, compared to $0.9 million in the s econd quarter

ValueC lick Inc . (NasdaqGS :VCLK ) Va lueC lick Inc. R eports E arnings R es ults for S econd

Quarter and S ix Months E nded J une 30, 2009 ; P rovides

E a rnings Outlook for T hird Quarter of 2009

V a lueC lick Inc. reported financial results for the s econd quarter and s ix months ended J une 30, 2009. F or the period, the company reported

net income of $14.9 million or $0.17 per diluted share on revenues of $130.4 million aga ins t net income of $16.5 million or $0.17 per diluted

s hare on revenues of $158.5 million for s ame period a year ago. Income from operations for the period was $23.4 million aga ins t $28.0

million for s ame period a year ago. Income before income taxes for the period was $24.6 million aga ins t $29.4 million for s ame period a year

ago. Net income from continuing operations for the period was $14.9 million or $0.17 per diluted share aga ins t net income from continuing

operations for the period was $16.5 million or $0.17 per diluted share for s ame period a year ago. In the second quarter of 2009, the

company generated approximately $23.5 million in free cas h flow, defined as net cas h from operations les s capital expenditures . F or the

period, the company reported net income of $28.1 million or $0.32 per diluted s hare on revenues of $265.4 million aga ins t net income of

$35.7 million or $0.37 per diluted s hare on revenues of $327.7 million for s ame period a year ago. Income from operations for the period was $

Beyond Commerce, Inc.

(OTCBB :BYOC)

Beyond Commerce Inc. Announces Loca lAdLink 's

E xpans ion into India

B eyond Commerce Inc. announced the P re-Launch of LocalAdLink into the country of India. T he Indian market pres ents a lucrative

expans ion opportunity for Loca lAdL ink . T he country of India currently has over a million people in the network marketing indus try. Indus try

obs ervers , who are highly optimis tic about the growth of this indus try in India , es timate the s ize of the indus try to cros s $1,000 billion mark by

the year 2010.

United Online Inc. (NasdaqGS :UNTD) United Online Inc. R eports Un-Audited Consolidated

E arnings R esults for the S econd Quarter and S ix Months

E nded J une 30, 2009 ; P rovides E a rnings Guidance for

the T hird Quarter of 2009

United Online Inc. reported un-audited consolidated earnings res ults for the second quarter and s ix months ended J une 30, 2009. F or the

quarter, the company reported net income applicable to common s tockholders of $17.7 million or $0.21 diluted per s hare on tota l revenues of

$260.8 million aga ins t $12.8 million or $0.18 diluted per s hare on tota l revenues of $122.3 million a year ago. Operating income was $43.1

million agains t $22 million a year ago. Income before income taxes was $34.7 million aga ins t $23.5 million a year ago. Net income was

$19.3 million agains t $13.7 million a year ago. Adjus ted operating income before depreciation and amortization was $68.5 million agains t

$37.6 million a year ago. Adjus ted net income applicable to common s tockholders was $31.4 million or $0.37 diluted per s hare agains t net

income of $20.4 million or $0.29 diluted per share a year ago. Net cash provided by operating activities was $32.5 million aga ins t $36.1

million a year ago. F or the s ix months , the company reported net income applicable to common s tockholders of $34 million or $0.41 diluted

per s hare on tota l revenues of $524.4 million agains t $25 million or $0.36 diluted per s hare on tota l revenues of $244.1 million a year ago. Ope

The company provided earnings guidance for the third quarter of 2009. F or the quarter, the company expects revenues in the range of $208.0

Giant Interactive Group, Inc .

(NYSE :GA)

G iant Interactive G roup Inc. R eports E arnings R esults for

the F irs t Quarter of 2009

G iant Interactive G roup Inc. reported earnings res ults for the firs t quarter of 2009. F or the quarter, the company's operating revenues

reached CNY 1.595 billion and CNY 374 million in 2008 and the firs t quarter of 2009 res pectively.

Perfect World Co., L td.

(NasdaqGS :PWRD)

P erfect W orld Announces New 2D MMOR PG 'Dragon

E xca libur'

P erfect W orld C o. , L td. announced the introduction of its firs t 2D rea l-time fantasy MMOR PG , 'Dragon E xcalibur. ' Developed by P erfect

W orld's S hanghai R &D team, 'Dragon E xca libur' is a 2D fantas y online game that runs on R a ider, the C ompany's proprieta ry 2D game

engine. T he innovative 2D technology will a llow the game to feature advanced and unique visual effects . In 'Dragon E xca libur, ' a fantas y

world is created where human beings , demons and gods meet in a s imulated his torical s cene. It us hers the players into a world of a

voluminous his torical novel where they can s huttle between different dynas ties . T he game players can als o familiarize themselves with the

s imulated his torica l s ettings and can try to a lter the fa te of his tory with their courage in the game. T he innovative play modes will bring a

brand new game experience to the players .

MOKO.mobi L imited (ASX:MKB ) MOKO.mobi L imited R eports P arent and Consolidated

E arnings R esults for the Y ear E nded J une 30, 2009

MOKO.mobi L imited reported parent and consolidated earnings results for the year ended J une 30, 2009. F or the year, the company

reported consolidated los s a fter tax and los s a ttributable to equity holders of AUD 2,487,159 or 3. 16 cents per diluted s hare on revenue from

continuing operations of AUD 555,058 compared to consolidated los s after tax and los s attributable to equity holders of AUD 3,114,862 or

5.18 cents per diluted share on revenue from continuing operations of AUD 1,474,485 for the s ame period a year ago. T he company

reported consolidated los s before income tax expens e of AUD 2,808,925 compared to consolidated los s before income tax expens e of AUD

3,114,862 for the s ame period a year ago. Net cas h used in operating activities was AUD 2,100,797 compared to net cash used in operating

activities was AUD 2,162,428 for the s ame period a year ago. F or the year, the parent company reported los s a fter tax and los s attributable

to equity holders of AUD 2,475,810 on revenue from continuing operations of AUD 555,058 compared to los s a fter tax and los s a ttributable

to equity holders of AUD 3,114,452 on revenue from continuing operations of AUD 1,474,485 for the s ame period a year ago. T he company re

Figure 7. Key Developments Source. Capital IQ

VAL UAT IO N

Online Gaming companies lead market-cap charts: Thirteen companies in our Web 2.0 universe top US$1 bill ion in market capitalization (Figure 8). Fifty-six of the 91 companies have market caps under US$100 mill ion, with 24 under US$10 mil lion. Online gaming companies dominate the top of the l ist, led by Tencent Holdings with a market cap over US$20 bill ion.

Market C ap (USD m)

0.00.00.00.10.30.40.60.61.01.31.81.92.22.62.73.33.54.34.44.44.74.74.88.910.712.612.912.913.515.115.815.919.520.721.421.422.525.729.930.932.135.638.839.041.046.848.451.856.157.258.463.570.476.880.982.7102.3103.0106.7111.7120.7139.8145.7165.3199.0218.3237.7239.2268.3269.3292.3344.7390.1404.5

545.9633.0

948.2976.1

1101.7

1779.81818.11819.0

2022.82164.4

2449.42453.4

2662.83335.8

1134.8

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

S ocial Media V enures , Inc .Dibz International, Inc .S NM Global HoldingsTotal S port Online A S

China Gatew ay CorporationThe Parent Company

As s ocia ted Media Holdings Inc .CLICKER Inc .

Unis erve Communications Corp.B igs tring Corp.

Wynds torm CorporationLiveWorld Inc .

B etaw ave CorporationWooz yFly , Inc .

Magnitude Information S ys tems Inc .is eemedia Inc .

CornerWorld CorporationS NAP Interactive, Inc .

V OIS , Inc .DigitalPos t Interactive, Inc .

Worlds .com Inc .MOKO.mobi L imitedBright Things plcEx tens ions , Inc .

S pectrumDNA , Inc .IA S Energy , Inc .UOMO Media, Inc

L ingo Media CorporationBeyond Commerce, Inc .

Jumbuck Enterta inment Pty Ltd.A cceleriz e New Media, Inc .

Quepas a Corp.B roadWebA s ia Inc .

Dolphin Digital Media , Inc .Y nk Korea Inc .LookSmart, Ltd.

Wiz z ard S of tw are CorporationNorthgate Technologies L imited

AQ Interactive, Inc .DXN Holdings BhdS oc ialw is e, Inc .DigitalTow n, Inc .

Webzen Inc .NeXplore Corporation

Ngi Group Inc .PNI Digital Media Inc .

Eolith Co. Ltd.Frogs ter Interactive Pic tures AG

S park Netw orks , Inc .F luid Mus ic Canada, Inc .

Gravity Co. , LtdGeoS entric Oy j

TheS treet.com, Inc .HanbitS of t, Inc .

Myriad Group AGKAB Dis tribution Inc .

Cyberplex Inc .GameOn Co Ltd.Tree.Com, Inc .

NeuLion IncorporatedY edangOnline Corp.

DADA S pAOAO RBC Information S ys tems

A ctoz S of t Co. , Ltd.XING AG

Openw ave S ys tems Inc .GungHo Online Entertainment, Inc .

The9 L imitedGamania Digital Entertainment Co. , Ltd.

GigaMedia Ltd.CDC Corp.

S K Communications Co. , Ltd.NetDragon WebS of t, Inc .

S hutterf ly , Inc .NEOWIZ Games Corporation

United Online Inc .V alueClick Inc .

Mix i, Inc .Chines e Gamer International

K ings oft Co. Ltd.Gree, Inc .

Giant Interactive Group, Inc .Perfec t World Co. , Ltd.

Open Tex t Corp.Changyou.com L imitedIAC/InterActiveCorp.

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

S handa Interactive Entertainment Ltd.Neteas e.com Inc .

Tencent Holdings Ltd.

Figure 8. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 5.0x: The overall average TEV/Revenue (LTM) multiple for our group is 5.0x (versus 4.9x last week) (Figure 9). Two companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 35.7x, followed by Dolphin Digital Media, Inc. (OTCBB:DPDM) at 28.1x. The median is only 2.0x. Note that we exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.1 0.2 0.2 0.3 0.3 0.5 0.5 0.5 0.6 0.6 0.6 0.70.8 0.8 0.9 0.9 1.0 1.1 1.1 1.1 1.2 1.3 1.4 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.3 2.3 2.4 2.6 2.7 2.7 2.7 2.8 2.9 2.9 3.4 3.8 4.0 4.3 4.5 4.6 5.1 5.56.9

7.8 8.2 8.79.7 9.9

11.712.4

15.415.6

17.618.4

20.8

23.6

28.0

35.7

Average, 5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

TheStreet.com, Inc.

Uniserve Communications Corp.

The Parent Company

CLICKER Inc.

Northgate Technologies Limited

Perfect World Co., Ltd.

IAC/InterActiveCorp.

Tree.Com, Inc.

GameOn Co Ltd.

DXN Holdings Bhd

Openwave Systems Inc.

Jumbuck Entertainment Pty Ltd.

CDC Corp.

DADA SpA

SNAP Interactive, Inc.

United Online Inc.

Spark Networks, Inc.

SNM Global Holdings

GigaMedia Ltd.

HanbitSoft, Inc.

KAB Distribution Inc.

Cyberplex Inc.

Actoz Soft Co., Ltd.

ValueClick Inc.

iseemedia Inc.

Shutterfly, Inc.

Modern Times Group Mtg AB

SK Communications Co., Ltd.

Gamania Digital Entertainment Co., Ltd.

GungHo Online Entertainment, Inc.

Myriad Group AG

PNI Digital Media Inc.

YedangOnline Corp.

Beyond Commerce, Inc.

NEOWIZ Games Corporation

Open Text Corp.

XING AG

Ynk Korea Inc.

MOKO.mobi Limited

NetDragon WebSoft, Inc.

Eolith Co. Ltd.

CornerWorld Corporation

Sohu.com Inc.

Wizzard Software Corporation

Social Media Venures, Inc.

Total Sport Online AS

Accelerize New Media, Inc.

NeuLion Incorporated

Mixi, Inc.

Changyou.com Limited

DigitalPost Interactive, Inc.

Kingsoft Co. Ltd.

Fluid Music Canada, Inc.

GeoSentric Oyj

Gree, Inc.

Lingo Media Corporation

Frogster Interactive Pictures AG

Associated Media Holdings Inc.

Bright Things plc

Chinese Gamer International

UOMO Media, Inc


Dolphin Digital Media, Inc.

Bigstring Corp.

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 11.7x (versus. 11.1x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 5.3x revenue (versus 5.5x last week) (Figure 11). Ten of the companies are Canadian (average 5.3x revenue).

Average TEV/LTM Revenue - By Exchange

0.3 0.30.00.60.8

1.71.82.02.02.12.32.63.63.84.14.44.6

9.19.910.2

11.711.8

17.6

0.02.0

4.06.08.0

10.0

12.014.016.0

18.020.0

AIM

SE

HK

OT

CB

B

GT

SM

HLS

E

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RA

OT

CN

O

TS

X

TS

XV

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1 3 19 2 1 2 1 4 4 5 11 2 1 6 14 1 2 1 1 1 5 1 1

(x)

# Companies

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

Average TEV/LTM Revenue - By Country

0.6 0.3 0.00.8 0.8

1.71.82.12.33.5

4.65.35.37.17.9

9.19.9

17.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Un

ited

Fin

lan

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Ge

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ny

Ch

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Ta

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Ca

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ited

No

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Ja

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So

uth

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Sw

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en

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Ma

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Ind

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Ru

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1 1 2 10 3 10 39 1 6 1 8 2 1 1 1 1 1 1

(x)

# Companies

TEV/EBITDA (LTM) averages 11.1x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 11.1x LTM EBITDA (vs. 10.9x last week), led by Tencent Holdings (SEHK-700) 48.8x multiple (Figure 12). Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 9.8x (vs. 9.5x last week).

TEV/LTM EB ITDA (x)

0.9 1.8 2.4 3.0 3.1 4.1 4.4 4.8 5.5 6.6 7.4 8.2 8.8 9.3 9.7 9.9 9.9 10.5 10.9 11.0 11.1 11.7 12.5 12.6 12.8 13.5

19.4 20.4 20.6 21.7

28.3

32.9

48.8

A verage, 11.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0



GameOn Co Ltd.

TheStreet.com, Inc.


DXN Holdings Bhd

United Online Inc.


DADA SpA



ValueClick Inc.

XING AG

Sohu.com Inc.

KAB Distribution Inc.


CDC Corp.

Open Text Corp.

YedangOnline Corp.

GungHo Online Entertainment, Inc.



Shutterfly, Inc.

Cyberplex Inc.



Gree, Inc.

Mixi, Inc.

Openwave Systems Inc.

Kingsoft Co. Ltd.

SK Communications Co., Ltd.



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 3.1x (vs. 0.9x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 8.8x EBITDA (Figure 14). Ten of the companies are Canadian (average 11.0x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.00.21.83.03.14.14.85.5

8.58.810.311.011.111.213.9

22.3

26.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

SE

HK

GT

SM

KO

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TS

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3 2 6 4 1 1 14 2 5 1 2 1 19 5 2 1 1

(x)

# Companies

Average TEV/LTM EBITDA - By Country

1.80.0

0.2

4.15.5

8.88.88.99.911.011.113.9

16.8

22.3

0.0

5.0

10.0

15.0

20.0

25.0

Taiw

an

Ch

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South

Kore

a

Sw

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Can

ada

Hong

Kong

Ja

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Germ

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Unite

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Sta

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Italy

Ma

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Aus

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Rus

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Sw

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and

3 10 8 1 10 1 6 2 39 1 1 2 1 1

(x)

# Companies

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

P/E (LTM) averages 10.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x) is 10.0x LTM EPS (versus 10.0x last week), led Tencent Holdings Ltd (SEHK-700) 62.1x multiple (Figure 15). Ten of the companies have P/E multiples under 10x. The median is just 14.0x.

P/E LTM (x)

1.9 2.7 2.7 3.1 3.45.4 5.9 6.6

9.5 10.6 11.6 12.2 12.6 13.4 14.0 14.3 14.917.2

18.7

23.4 24.3 25.528.5 29.3

30.7 31.6

41.142.5

51.7

62.1

A verage, 10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Giant Interactive Group, Inc.

The9 Limited

Shanda Interactive Entertainment Ltd.


Netease.com Inc.

DXN Holdings Bhd



Cyberplex Inc.

GigaMedia Ltd.


GameOn Co Ltd.

YedangOnline Corp.



Sohu.com Inc.



XING AG

DADA SpA


Kingsoft Co. Ltd.



Worlds.com Inc.

Open Text Corp.

Gree, 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 18.7x. On a geographic basis, the United States has the most companies (39), trading at an average of 18.5x earnings (Figure 17). Ten of the companies are Canadian (average 20.5x EPS).

Average P/E - By Exchange

0.01.9

5.45.99.510.5

13.417.2

18.718.722.0

23.4

33.935.0

35.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

GT

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TS

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HK

CM

KO

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NY

SE

Nas

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GM

2 5 3 1 6 2 19 2 1 14 4 2 1 1 5

(x)

# Companies

Average P/E - By Country

0.0

5.45.9

13.414.416.5

16.518.7

20.523.427.2

35.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Japan

Taiw

an

Italy

Canada

Germ

any

South

Kore

a

Unite

d

Sta

tes

Chin

a

Sw

eden

Austr

alia

Mala

ysia

Sw

itzerland

6 3 1 10 2 8 39 10 1 2 1 1

(x)

# Companies

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

UP CO MI NG EVE NTS

Earnings CalendarCompany Date & Time Quarter Conf Call Details

PNI Digita l Media Inc. (T S XV :P N) Wednesday, Augus t 12, 2009 4:30 PM (E DT ) Q3 2009 888-300-8196

T encent Holdings Ltd. (S E HK :700) Wednesday, Augus t 12, 2009 8:00 AM (E DT ) Q2 2009 866.549.1292

Netease.com Inc. (NasdaqGS :NT E S ) Wednesday, Augus t 12, 2009 9:00 PM (E DT ) Q2 2009 888-846-5003

Tucows Inc. (AME X:TCX) Thursday, Augus t 13, 2009 5:00 PM (E DT ) Q2 2009 800-814-4890

CDC Corp. (NasdaqGS :CHIN.A) Tuesday, Augus t 18, 2009 9:00 AM (E DT ) Q2 2009 888-603-6873

Open T ext C orp. (NasdaqGS :OT E X) Thursday, Augus t 20, 2009 5:00 PM (E DT ) Q4 2009 416-644-3415

The9 L imited (NasdaqGS :NCTY ) Thursday, Augus t 27, 2009 9:00 PM (E DT ) Q2 2009 800-561-2693

Figure 18. Earnings Calendar Source. Company reports

Comparable Company Analys is > Web 2.0

Price Performance

Company Name Currency Ticker E xchange USD Market C ap ($m) Current P rice 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Accelerize New Media, Inc. US D ACLZ OTC B B 15.8 0.57 1.8% 26.7% 14.0% 62.9% -9.5% -13.6%

Actoz S oft C o. , L td. K R W A052790 K OS E 165.3 23,550 -8.0% -21.1% 56.0% 91.5% 170.7% -34.6%

AQ Interactive, Inc. J P Y 3838 T S E 29.9 53,600 -9.6% -8.4% 3.5% 60.0% -62.5% -63.8%

Associated Media Holdings Inc. US D AS MH OTC P K 0.6 0.01 -30.0% -30.0% 833.3% 180.0% -30.0% -72.0%

B igs tring Corp. US D B S GC OTC B B 1.3 0.03 -2.0% -37.5% 8.7% 42.9% -68.8% -72.2%

B etawave C orporation US D BWAV OTC B B 2.2 0.08 7.1% -6.3% -31.8% -54.5% -75.4% -78.0%

B eyond Commerce, Inc. US D B YOC OTC B B 13.5 0.30 -11.8% -21.1% -68.4% -60.5% -90.5% -90.8%

B right T hings plc GB P AIM:BG T AIM 4.8 0.02 -14.3% -6.3% -15.7% -23.9% -7.7% -40.0%

B roadWebAs ia Inc. US D BW BA OTC P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84.7% -92.1%

CDC C orp. US D CHIN.A NasdaqG S 292.3 2.76 -6.9% 96.8% 107.1% 193.1% -1.3% -29.7%

Changyou.com Limited US D CYOU NasdaqG S 2,164.4 39.35 6.4% 2.3% 33.2% NM NM -18.6%

China Gateway C orporation US D CGWY OTC P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50.0% -57.1%

Chines e Gamer International TWD GTS M:3083 G T S M 1,101.7 430.00 5.4% 0.5% 78.8% 275.5% 438.6% -17.1%

C LICK E R Inc. US D CLK Z OTC B B 0.6 0.01 60.0% 73.9% 33.3% -46.7% -98.9% -98.9%

CornerW orld Corporation US D CW R L OTC B B 3.5 0.06 10.0% -8.3% -45.0% -86.6% -91.5% -93.0%

C yberplex Inc. CAD TS X:CX T S X 102.3 1.70 0.6% 6.2% -8.1% 372.2% 183.3% -14.6%

DADA S pA E UR CM:DA CM 139.8 6.10 0.3% -1.5% -1.2% -1.9% -51.0% -51.0%

DXN Holdings B hd MYR DXN K LS E 30.9 0.47 17.5% 34.3% 10.6% 30.6% 11.9% -2.1%

Dibz International, Inc. US D DIB Z OTC P K 0.0 0.00 20.0% NM 20.0% -88.0% -97.6% -97.6%

DigitalP os t Interactive, Inc. US D DG LP OTC B B 4.4 0.06 19.8% 71.1% 299.3% 565.6% -14.4% -39.5%

DigitalT own, Inc. US D DGTW OTC BB 35.6 1.30 -7.1% -35.0% -48.0% -13.3% -69.4% -78.7%

Dolphin Digital Media, Inc. US D DPDM OTC BB 20.7 0.40 -21.6% -9.1% -40.3% -24.5% NM -64.6%

E olith C o. L td. K R W A041060 K OS E 48.4 820.00 -1.8% 0.0% -7.9% 39.0% 0.6% -29.3%

E xtens ions , Inc. US D E XT I OTC P K 8.9 0.20 150.0% 0.0% 33.3% 0.0% NM -80.2%

F luid Mus ic C anada, Inc. CAD TS X:FMN TS X 57.2 1.18 31.1% 81.5% 96.7% 110.7% -19.2% -34.4%

F rogs ter Interactive P ictures AG E UR FR G XTR A 51.8 14.50 8.3% 27.2% 89.3% 229.5% 150.0% -6.5%

G amania Digita l E ntertainment Co. , L td. TWD 6180 G T S M 268.3 58.00 -1.7% 1.4% 49.7% 158.9% 121.6% -15.7%

G ameOn Co L td. J P Y 3812 T S E 103.0 103,700 0.2% -6.2% 12.7% -9.8% -7.4% -32.2%

GeoS entric Oyj E UR GE O1V HLS E 63.5 0.05 25.0% 25.0% 0.0% 25.0% -28.6% -28.6%

G iant Interactive G roup, Inc. US D GA NYS E 1,818.1 8.05 -1.9% 7.6% -3.5% 35.1% -23.2% -25.3%

G igaMedia L td. US D G IGM NasdaqG S 269.3 4.94 -1.0% -6.3% -20.2% -32.7% -61.1% -61.6%

G ravity Co. , Ltd US D GR VY NasdaqGM 58.4 2.10 25.0% 40.0% 116.5% 200.0% 13.5% 8.2%

G ree, Inc. J P Y T S E :3632 T S E 1,779.8 7, 740 2.5% 12.2% 48.8% 47.7% NM -6.3%

GungHo Online E ntertainment, Inc. J P Y 3765 OS E 237.7 202,000 -4.0% -15.7% 41.7% 96.1% 0.5% -27.8%

HanbitS oft, Inc. K R W A047080 K OS E 76.8 4,305 -3.0% -7.8% -22.8% 24.1% 11.1% -35.2%

IAC /InterActiveC orp. US D IAC I NasdaqG S 2,449.4 18.50 -0.1% 16.9% 18.2% 29.1% -48.2% -63.4%

IAS E nergy, Inc. US D IAS C .A OTC B B 12.6 0.18 57.9% 12.5% -35.7% 620.0% -14.3% -35.7%

is eemedia Inc. CAD IE E T S XV 3.3 0.07 -12.5% -17.6% -41.7% -22.2% -63.2% -68.2%

J umbuck E ntertainment P ty Ltd. AUD AS X: JMB AS X 15.1 0.37 -2.6% -2.6% -7.5% -7.5% -33.9% -40.3%

K AB Dis tribution Inc. CAD TS X:K AB T S X 82.7 1 0.0% -1.5% 6.7% 75.3% -23.8% -29.7%

K ingsoft C o. L td. HK D 3888 S E HK 1,134.8 8 -5.0% 45.7% 95.2% 177.4% 171.8% -7.2%

L ingo Media Corporation CAD TS XV :LM TS XV 12.9 1.12 -2.6% -5.9% 12.0% 6.7% -38.1% -41.7%

L iveW orld Inc. US D LVWD OTC P K 1.9 0.06 100.0% 9.1% -7.7% 50.0% -71.4% -76.0%

LookS mart, L td. US D LOOK NasdaqGM 21.4 1.25 1.6% 10.6% -2.3% -9.4% -57.8% -62.9%

Magnitude Information S ys tems Inc. US D MAGY OTC B B 2.7 0.01 -7.7% -33.3% -40.0% -76.0% -70.0% -80.0%

Mixi, Inc. J P Y 2121 T S E 976.1 618,000.00 -9.4% -0.6% 46.8% 33.2% -10.6% -32.9%

Modern T imes G roup Mtg AB S E K MTG B OM 2,662.8 293.00 6.2% 36.6% 25.8% 103.8% -19.4% -21.1%

MOKO.mobi L imited AUD MKB AS X 4.7 0.07 0.0% -7.1% -13.3% 62.5% 62.5% -35.0%

Myriad G roup AG CHF MYR N S WX 80.9 4.12 0.5% -13.3% -17.6% -15.1% -58.4% -58.8%

NE OW IZ G ames Corporation K R W A095660 K OS E 545.9 31,850.00 -11.2% -1.4% -8.5% 118.2% 178.8% -24.2%

NetDragon WebS oft, Inc. HK D 777 S E HK 390.1 5.72 -12.0% 0.2% 5.1% 95.9% -21.4% -34.3%

Netease. com Inc. US D NTE S NasdaqG S 5,870.8 45.36 -1.2% 32.1% 45.5% 129.7% 78.3% -2.8%

NeuLion Incorporated CAD TS X:NLN T S X 111.7 1.06 27.7% 51.4% 51.4% 140.9% NM -2.8%

NeXplore Corporation US D NXP C OTC P K 39.0 0.70 0.0% 16.7% 0.0% -17.6% 27.3% -51.7%

Ngi G roup Inc. J P Y 2497 T S E 41.0 32,200.00 -2.7% -2.4% 12.2% 17.2% -61.2% -74.7%

Northgate T echnologies L imited INR 590057 B S E 25.7 35.20 -5.4% 16.0% -13.5% -19.2% -87.9% -88.8%

Open T ext Corp. US D OTE X NasdaqG S 2,022.8 38.44 0.8% 8.3% 23.4% 8.5% 8.9% -1.7%

Openwave S ys tems Inc. US D OPWV NasdaqG S 218.3 2.62 4.8% 16.4% 116.5% 223.5% 80.7% -16.3%

P erfect W orld Co. , Ltd. US D PW R D NasdaqG S 1,819.0 37.40 -0.7% 25.4% 99.9% 150.0% 47.2% -2.7%

P NI Digital Media Inc. CAD TS XV :P N T S XV 46.8 1.48 -1.3% 2.1% -8.6% -12.9% -58.1% -59.1%

Quepasa C orp. US D QP S A OTC B B 15.9 1.25 4.2% 50.6% 26.3% -24.2% -58.2% -63.9%

OAO R BC Information S ys tems US D R BC I R T S 145.7 1.05 0.0% 16.7% 6.6% 238.7% -86.2% -86.6%

S handa Interactive E nterta inment L td. US D S NDA NasdaqG S 3,335.8 49.96 0.1% -3.8% -2.8% 65.5% 86.3% -23.1%

S hutterfly, Inc. US D S F LY NasdaqG S 404.5 15.89 1.7% 30.9% 24.9% 92.1% 59.1% -3.9%

S K C ommunications C o. , L td. K R W A066270 K OS E 344.7 10,100.00 4.7% 5.0% 9.8% 25.5% -27.6% -32.0%

S NAP Interactive, Inc. US D S TV I OTC B B 4.3 0 100.0% -11.1% -46.7% -59.6% -55.1% -63.0%

S NM G loba l Holdings US D S NMN OTC P K 0.0 0.00 -60.0% -71.4% -33.3% 100.0% -99.7% -99.9%

S ocial Media V enures , Inc. US D S MV I OTC P K 0.0 0.20 -45.9% -37.5% 1900.0% -85.6% -20.0% -96.0%

S ocialwis e, Inc. US D S CLW OTC B B 32.1 0.74 1.4% -7.5% 25.4% 54.2% -70.0% -71.5%

S ohu.com Inc. US D S OHU NasdaqG S 2,453.4 64.00 2.0% 9.8% 18.6% 36.4% -15.5% -19.9%

S park Networks , Inc. US D LOV AME X 56.1 3 12.8% 11.4% 5.0% 9.2% -36.1% -38.8%

S pectrumDNA, Inc. US D S P XA OTC B B 10.7 0 57.1% 10.0% -45.0% 120.0% NM -63.3%

T encent Holdings Ltd. HK D 700 S E HK 25,897.8 111 1.2% 23.1% 56.1% 131.2% 74.6% -2.5%

T he P arent Company US D K IDS .Q OTC P K 0.4 0.02 0.0% -50.0% 20.0% -50.0% -99.3% -99.3%

T he9 L imited US D NC TY NasdaqG S 239.2 9.38 1.9% 6.8% 0.3% -36.2% -50.1% -59.5%

T heS treet.com, Inc. US D T S CM NasdaqGM 70.4 2.30 11.1% 17.3% 15.6% -14.2% -66.7% -68.7%

T ota l S port Online AS NOK TOS O OTCNO 0.1 0.03 0.0% 0.0% 0.0% -25.0% -40.0% -40.0%

T ree.C om, Inc. US D TR E E NasdaqGM 106.7 9.88 -0.3% 2.3% -14.9% 141.6% 0.7% -24.4%

Unis erve Communications Corp. CAD TS XV :US S T S XV 1.0 0.05 0.0% -35.7% 12.5% -43.8% -82.0% -82.0%

United Online Inc. US D UNTD NasdaqG S 633.0 7.55 -17.0% 11.2% 6.6% 38.8% -36.0% -38.4%

UOMO Media, Inc US D UOMO OTC BB 12.9 0.15 11.1% 36.4% -48.3% 87.5% -62.5% -85.8%

V alueC lick Inc. US D VCLK NasdaqG S 948.2 10.88 -7.4% 7.6% 8.3% 67.6% -19.1% -22.3%

VOIS , Inc. US D VOIS OTC B B 4.4 0.01 -11.7% -72.1% 65.6% -29.3% -85.9% -85.9%

W ebzen Inc. US D WZE N NasdaqGM 38.8 3.28 -6.7% -9.3% -7.7% 118.4% 12.6% -30.0%

W izzard S oftware C orporation US D WZE AME X 22.5 0.47 -4.1% -11.3% -24.2% -34.7% -70.6% -72.8%

Worlds .com Inc. US D WDDD OTC B B 4.7 0.09 -25.0% 0.0% -55.0% -59.1% -74.3% -74.3%

WoozyF ly, Inc. US D WZY F OTC B B 2.6 0.15 0.0% NM 0.0% 0.0% NM -96.3%

W ynds torm C orporation US D WYND OTC P K 1.8 0.10 0.0% 150.0% 233.3% -16.7% -83.3% -83.3%

XING AG E UR O1BC XT R A 199.0 26.70 -2.7% -13.9% -11.1% -11.3% -14.7% -25.8%

Y edangOnline C orp. K R W A052770 K OS E 120.7 9,440 14.4% 12.4% -0.1% 38.8% -0.1% -23.9%

Ynk K orea Inc. K R W A023770 K OS E 21.4 4,910 -4.7% -24.2% -37.6% 2.3% -55.0% -60.4%

High 150.0% 650.0% 1900.0% 650.0% 438.6% 8.2%

Low -60.0% -72.1% -68.4% -88.0% -99.7% -99.9%

Average 696.6 4.3% 13.7% 53.1% 64.1% -12.6% -47.6%Median 0.0% 1.7% 6.7% 33.2% -28.6% -40.0%

Figure 19. Price Performance Source. Capital IQ

Comparable Company Analys is > Web 2.0Valuation Multiples

Company Name Sector Country

Primary

E xchange Ticker

USD Market

Cap ($m)

TEV/LTM

R evenue

TEV/ NTM

R evenue

TE V/LTM

EB ITDA

TEV/NTM

E B ITDA P/LTM E PS P/NTM E PS P/TangBV

Accelerize New Media , Inc. Direct Marketing United S ta tes OTCB B AC LZ 15.8 5.1x - - - - - -

Actoz S oft C o. , Ltd. G aming S outh K orea KOS E A052790 165.3 1.4x - 6. 6x - 24.3x - 2.7x

AQ Interactive, Inc. G aming J apan T S E 3838 29.9 0.0x - 0. 3x - - - 0.5x

As socia ted Media Holdings Inc. Mobile United S ta tes OTCP K AS MH 0.6 15.6x - - - - - -

B igs tring Corp. Ins tant Messaging United S ta tes OTCB B B S GC 1.3 35.7x - - - - - -

B etawave Corpora tion Media United S ta tes OTCB B BWAV 2.2 - - - - - - 0.3x

B eyond Commerce, Inc. S ocial Networking United S ta tes OTCB B B YOC 13.5 2.6x - - - - - -

B right T hings plc S ocial Networking United K ingdom AIM AIM:B GT 4.8 17.6x - - - - - -

B roadWebAs ia Inc. S ocial Networking United S ta tes OTCP K BWBA 19.5 - - - - - - -

CDC Corp. G aming Hong K ong NasdaqGS CHIN.A 292.3 0.8x 0.8x 9. 9x 12.5x - - -

Changyou.com Limited G aming C hina NasdaqGS C YOU 2,164.4 7.8x 6.0x 12.8x 10.5x 14.9x 13.3x 14.7x

China G ateway Corpora tion Mobile United S ta tes OTCP K CGW Y 0.3 0.0x - - - - - -

C hines e G amer Interna tional G aming T a iwan G T S M GT S M:3083 1,101.7 18.4x - 32.9x - 42.5x - 16.0x

C L IC K E R Inc. Direct Marketing United S ta tes OTCB B C LK Z 0.6 0.3x - - - - - -

C ornerWorld C orporation C ontent United S ta tes OTCB B CW R L 3.5 3.8x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T S X:CX 102.3 1.3x - 12.6x - 9.5x - 9.4x

DADA S pA S ocial Networking Italy CM CM:DA 139.8 0.8x - 5. 5x - 23.4x - -

DXN Holdings B hd S ocial Networking Malays ia K LS E DXN 30.9 0.6x - 4. 1x - 5.4x - 0.7x

Dibz Interna tiona l, Inc. S NS Apps United S ta tes OTCP K DIB Z 0.0 - - - - - - -

DigitalP os t Interactive, Inc. C ontent United S ta tes OTCB B DGLP 4.4 8.2x - - - - - -

DigitalT own, Inc. S ocial Networking United S ta tes OTCB B DGTW 35.6 - - - - - - -

Dolphin Digital Media , Inc. S ocial Networking United S ta tes OTCB B DPDM 20.7 28.0x 1.4x - - - 1.6x -

E olith C o. L td. G aming S outh K orea KOS E A041060 48.4 3.4x - - - - - 4.5x

E xtens ions , Inc. C ontent United S ta tes OTCP K E XT I 8.9 - - - - - - -

F luid Mus ic C anada, Inc. Media United S ta tes T S X T S X:FMN 57.2 9.7x 6.4x - - - - 5.4x

F rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 51.8 15.4x - - - - - 7.1x

G amania Digital E ntertainment Co. , Ltd. G aming T a iwan G T S M 6180 268.3 1.9x - 11.7x - 28.5x - 3.5x

G ameOn Co Ltd. G aming J apan T S E 3812 103.0 0.6x - 2. 4x - 12.2x - 1.4x

G eoS entric Oyj Mobile F inland HLS E GE O1V 63.5 9.9x - - - - - 10.7x

G iant Interactive G roup, Inc. G aming C hina NYS E GA 1,818.1 - - - - 1.9x 13.4x 0.4x

G igaMedia Ltd. G aming T a iwan NasdaqGS G IGM 269.3 1.1x 1.0x - 5.0x 10.6x 9.9x 2.3x

G ravity C o. , Ltd G aming S outh K orea NasdaqGM GR V Y 58.4 - - - - 0.0x - 0.0x

G ree, Inc. S ocial Networking J apan T S E T S E : 3632 1,779.8 11.7x - 19.4x - 41.1x - 19.0x

G ungHo Online E nterta inment, Inc. Media J apan OS E 3765 237.7 2.0x - 11.0x - - - 34.3x

HanbitS oft, Inc. G aming S outh K orea KOS E A047080 76.8 1.1x - - - - - 2.3x

IAC /InterActiveCorp. Media United S ta tes NasdaqGS IAC I 2,449.4 0.5x 0.5x 13.5x 4.2x 11.6x 35.7x 1.1x

IAS E nergy, Inc. V ideo C anada OTCB B IAS C .A 12.6 - - - - - - -

is eemedia Inc. C ontent C anada T S XV IE E 3.3 1.5x - - - - - 2.7x

J umbuck E ntertainment P ty L td. S ocial Networking Aus tra lia AS X AS X:J MB 15.1 0.7x - 1. 8x - 5.9x - 1.5x

K AB Dis tribution Inc. C ontent C anada T S X T S X:K AB 82.7 1.2x 1.1x 9. 7x 6.0x - - -

K ingsoft C o. Ltd. G aming C hina S E HK 3888 1,134.8 8.7x - 21.7x - 25.5x - 6.2x

Lingo Media C orpora tion Learning C anada T S XV T S XV : LM 12.9 12.4x - - - - - 13.1x

LiveW orld Inc. S ocial Networking United S ta tes OTCP K LVWD 1.9 0.1x - - - - - 0.8x

LookS mart, L td. Direct Marketing United S ta tes NasdaqGM LOOK 21.4 - - - - - - 0.8x

Magnitude Information S ys tems Inc. S ocial Networking United S ta tes OTCB B MAGY 2.7 - - - - - - -

Mixi, Inc. S ocial Networking J apan T S E 2121 976.1 6.9x - 20.4x - 51.7x - 7.1x

Modern T imes G roup Mtg AB Media S weden OM MTG B 2,662.8 1.7x 1.6x 11.1x 12.6x 13.4x 14.7x -

MOKO .mobi L imited S ocial Networking Aus tra lia AS X MK B 4.7 2.9x - - - - - 3.4x

Myriad G roup AG Mobile S witzerland S W X MYR N 80.9 2.3x - - - - - 3.7x

NE OW IZ G ames Corporation G aming S outh K orea KOS E A095660 545.9 2.7x - 9. 9x - 29.3x - 14.8x

NetDragon W ebS oft, Inc. G aming C hina S E HK 777 390.1 2.9x - 7. 4x - 14.0x - 2.1x

Netease.com Inc. G aming C hina NasdaqGS NT E S 5,870.8 - - - - 3.4x 20.1x 1.0x

NeuLion Incorporated V ideo C anada T S X T S X:NLN 111.7 5.5x 5.6x - - - - 6.3x

NeXplore Corporation C ontent United S ta tes OTCP K NXPC 39.0 - - - - - - -

Ngi G roup Inc. Media J apan T S E 2497 41.0 0.0x - 0. 1x - - - 0.9x

Northgate T echnologies L imited Direct Marketing India B S E 590057 25.7 0.3x - - - - - -

Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 2,022.8 2.7x 2.4x 10.5x 8.1x 31.6x 14.6x -

Openwave S ys tems Inc. Mobile United S ta tes NasdaqGS OPWV 218.3 0.6x 0.6x 20.6x 5.0x - 32.8x 3.2x

P erfect W orld C o. , Ltd. G aming C hina NasdaqGS PWR D 1,819.0 0.5x 2.4x 0. 9x 4.6x 3.1x 14.1x 1.2x

P NI Digital Media Inc. Digita l Imaging C anada T S XV T S XV :P N 46.8 2.3x 1.6x - 4.6x - - 18.6x

Quepasa C orp. S ocial Networking United S ta tes OTCB B QP S A 15.9 - - - - - - -

OAO R B C Information S ys tems Media R uss ia R T S R B C I 145.7 0.0x - 0. 2x - - - -

S handa Interactive E nterta inment Ltd. G aming C hina NasdaqGS S NDA 3,335.8 - - - - 2.7x 13.9x 1.1x

S hutterfly, Inc. Digita l Imaging United S ta tes NasdaqGS S FLY 404.5 1.6x 1.5x 12.5x 7.8x - - 2.4x

S K Communications Co. , Ltd. S earch S outh K orea KOS E A066270 344.7 1.8x - 28.3x - - - -

S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 4.3 0.9x - 3. 1x - 6.6x - 2.6x

S NM G lobal Holdings Media United S ta tes OTCP K S NMN 0.0 1.1x - - - - - -

S ocial Media V enures , Inc. S ocial Networking United S ta tes OTCP K S MV I 0.0 4.5x - - - - - -

S ocialwise, Inc. S ocial Networking United S ta tes OTCB B S CLW 32.1 - - - - - - 41.7x

S ohu.com Inc. G aming C hina NasdaqGS S OHU 2,453.4 4.0x 3.5x 9. 3x 7.7x 14.3x 17.4x 4.8x

S park Networks , Inc. S ocial Networking United S ta tes AME X LOV 56.1 1.0x - 4. 8x - 17.2x - -

S pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 10.7 - - - - - - 28.0x

T encent Holdings Ltd. P orta l C hina S E HK 700 25,897.8 23.6x - 48.8x - 62.1x - 25.9x

T he P a rent C ompany Media United S ta tes OTCP K K IDS .Q 0.4 0.2x 0.2x - 12.9x - - -

T he9 L imited G aming C hina NasdaqGS NCTY 239.2 - - - - 2.7x 13.5x 0.1x

T heS treet.com, Inc. Media United S ta tes NasdaqGM TS CM 70.4 0.1x 0.1x 3. 0x - - - 0.9x

T otal S port Online AS Media Norway OTCNO TOS O 0.1 4.6x - - - - - -

T ree.C om, Inc. P orta l United S ta tes NasdaqGM T R E E 106.7 0.5x - - 8.0x - 55.7x 1.3x

Uniserve C ommunications Corp. S ocial Networking C anada T S XV T S XV :US S 1.0 0.2x - - - - - -

United Online Inc. Media United S ta tes NasdaqGS UNTD 633.0 0.9x - 4. 4x - - - -

UOMO Media , Inc Media C anada OTCB B UOMO 12.9 20.8x - - - - - -

V a lueC lick Inc. Media United S ta tes NasdaqGS VCLK 948.2 1.4x - 8. 2x - - - 6.2x

VO IS , Inc. S ocial Networking United S ta tes OTCB B VOIS 4.4 - - - - - - 15.1x

W ebzen Inc. G aming S outh K orea NasdaqGM WZE N 38.8 - - - - - - 0.0x

W izzard S oftware Corporation P odcas ting United S ta tes AME X WZE 22.5 4.3x - - - - - -

W orlds .com Inc. C ontent United S ta tes OTCB B WDDD 4.7 - - - - 30.7x - -

W oozyF ly, Inc. S ocial Networking United S ta tes OTCB B WZYF 2.6 - - - - - - -

W ynds torm C orporation C ontent United S ta tes OTCP K W YND 1.8 - - - - - - -

X ING AG S ocial Networking G ermany XT R A O1B C 199.0 2.7x - 8. 8x - 18.7x - 6.2x

Y edangOnline Corp. G aming S outh K orea KOS E A052770 120.7 2.4x - 10.9x - 12.6x - 4.4x

Y nk K orea Inc. G aming S outh K orea KOS E A023770 21.4 2.8x - - - - - 1.0x

High 25,897.8 35.7x 6.4x 48.8x 12.9x 62.1x 55.7x 41.7x

Low 0.0 0.0x 0.1x 0. 1x 4.2x 0.0x 1.6x 0.0x

Average 696.6 5.0x 2.2x 11.1x 7.8x 18.4x 19.3x 7.0xMedian 47.6 2.0x 1.5x 9. 8x 7.8x 14.0x 14.4x 3.3x

Figure 20. Valuation Comparison Source. Capital IQ

Comparable Company Analys is > Web 2.0Summary by Country

Company Name USD Market Cap ($m) Avg USD Market Cap ($m) USD LTM Total Rev ($m) USD LTM Total E B ITDA ($m) E B ITDA %

United S tates 39 China 45,123.3 C hina 4,512.3 China 3,882.8 China 1,802.0 C hina 48.0%

Canada 10 United S ta tes 5,235.3 S weden 2,662.8 United S tates 3,882.8 United S tates 291.6 Aus tralia 37.2%

China 10 J apan 3,167.6 T aiwan 546.5 S weden 1,893.2 S weden 290.9 T aiwan 36.3%

S outh K orea 8 S weden 2,662.8 J apan 527.9 Canada 999.1 Canada 196.7 G ermany 31.2%

J apan 6 C anada 2,409.0 Hong K ong 292.3 S outh K orea 680.1 J apan 180.4 J apan 25.6%

Ta iwan 3 Ta iwan 1,639.4 C anada 240.9 J apan 604.7 S outh K orea 92.4 S weden 15.4%

Aus tralia 2 S outh K orea 1,399.0 S outh K orea 174.9 Hong K ong 389.9 T a iwan 52.5 Italy 14.6%

Germany 2 Hong K ong 292.3 R us s ia 145.7 T a iwan 366.1 Ita ly 34.8 Malays ia 13.8%

S witzerland 1 Germany 250.8 Ita ly 139.8 Ita ly 237.6 Hong K ong 30.8 R us s ia 13.1%

Hong K ong 1 R us s ia 145.7 United S ta tes 134.2 R us s ia 148.8 R us s ia 19.4 Hong K ong 7.9%

F inland 1 Ita ly 139.8 Germany 125.4 India 83.2 Malays ia 10.9 S outh K orea 6.4%

Ita ly 1 S witzerland 80.9 S witzerland 80.9 Malays ia 78.9 Germany 10.5 S witzerland 1.9%

United K ingdom 1 F inland 63.5 F inland 63.5 Germany 56.8 Aus tralia 3.1 C anada -13.3%

India 1 Malays ia 30.9 Malays ia 30.9 S witzerland 40.0 S witzerland 0.8 United S ta tes -14.4%

S weden 1 India 25.7 India 25.7 Aus tralia 16.2 Norway -1.1 India -50.0%

R us s ia 1 Aus tralia 19.8 Aus tralia 9.9 F inland 6.0 United K ingdom -1.9 Norway -50.6%

Malays ia 1 United K ingdom 4.8 United K ingdom 4.8 Norway 2.2 F inland -15.5 United K ingdom #DIV /0!

Norway 1 Norway 0.1 Norway 0.1 United K ingdom 0.3 India -41.6 F inland #DIV /0!

Grand Total 90 Grand Total 62,690.7 Grand Total 696.6 Grand Total 13,368.7 Grand Total 2,956.7 Grand Total 6.9%

Figure 21. Comparison by Country Source. Capital IQ

Comparable Company Analys is > Web 2.0Summary by E xchange

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

OTCB B 19 S E HK 27,422.7 S E HK 9,140.9 OM 1,893.2 NasdaqGS 1,753.6 S E HK 42.7%

Nas daqGS 14 NasdaqGS 23,120.4 OM 2,662.8 NasdaqGS 494.1 S E HK 669.0 AS X 37.2%

OTCP K 11 TS E 2,929.9 NY S E 1,818.1 S E HK 473.0 OM 290.9 G TS M 36.3%

KOS E 6 OM 2,662.8 NasdaqGS 1,651.5 CM 237.6 T S E 161.3 XT R A 31.2%

TS E 5 NY S E 1,818.1 G TS M 685.0 NY S E 218.9 K OS E 80.2 Nas daqGS 30.4%

Nas daqGM 5 GTS M 1,370.1 T S E 586.0 R T S 148.8 G TS M 52.5 T S E 27.2%

TS X 4 KOS E 1,301.8 OS E 237.7 OS E 105.9 CM 34.8 OS E 18.0%

TS XV 4 TS X 353.9 K OS E 217.0 K OS E 101.7 R T S 19.4 OM 15.4%

S E HK 3 NasdaqGM 295.7 R T S 145.7 T S E 99.8 OS E 19.0 CM 14.6%

AME X 2 XTR A 250.8 CM 139.8 G TS M 91.3 K LS E 10.9 K LS E 13.8%

AS X 2 OS E 237.7 XTR A 125.4 B S E 83.2 XTR A 10.5 R T S 13.1%

XTR A 2 OTCB B 200.6 T S X 88.5 NasdaqGM 82.1 NasdaqGM 8.5 K OS E 4.4%

GTS M 2 R TS 145.7 S WX 80.9 K LS E 78.9 AME X 6.4 Nas daqGM 3.9%

S WX 1 CM 139.8 HLS E 63.5 T S X 43.6 AS X 3.1 S WX 1.9%

HLS E 1 S WX 80.9 NasdaqGM 59.1 S WX 40.0 S WX 0.8 T S XV 1.3%

CM 1 AME X 78.6 AME X 39.3 AME X 29.9 NY S E 0.0 T S X -14.3%

B S E 1 OTCP K 72.4 K LS E 30.9 XTR A 28.4 OTCNO -1.1 OTCB B -32.0%

NY S E 1 T S XV 64.0 B S E 25.7 OTC P K 16.6 AIM -1.9 AME X -36.4%

OS E 1 HLS E 63.5 T S XV 16.0 T S XV 11.6 T S X -1.9 OTCP K -41.3%

AIM 1 K LS E 30.9 OTC B B 10.6 AS X 8.1 T S XV -6.2 B S E -50.0%

OM 1 B S E 25.7 AS X 9.9 HLS E 6.0 HLS E -15.5 OTCNO -50.6%

R TS 1 AS X 19.8 OTC P K 6.6 OTCNO 2.2 OTC P K -34.0 NY S E #DIV /0!

K LS E 1 AIM 4.8 AIM 4.8 OTC B B 1.7 B S E -41.6 AIM #DIV /0!

OTCNO 1 OTCNO 0.1 OTCNO 0.1 AIM 0.3 OTC B B -62.2 HLS E #DIV /0!

Grand Total 90 Grand Total 62,690.7 Grand Total 696.6 Grand Total 157.3 Grand Total 2,956.7 Grand Total 6.9%

Figure 22. Comparison by Exchange Source. Capital IQ

Financing - Las t Three Months (US$ m)Month Company Name Country Angel/Seed PIPE Series A S eries B S eries C S eries D Grand Total

J un-09 S ugar Inc . US A 16. 0 16.0

Tumri US A 15. 0 15.0

Boku US A 13.0 13.0

Wimba US A 12. 0 12.0

Grab Networks US A 12.0 12.0

AdChina China 10. 0 10.0

Goojet SAS F rance 8.5 8.5

AdMeld Inc . US A 8.0 8.0

beeTV US A 8.0 8.0

blueK iwi S oftware S A F rance 6.5 6.5

Nokeena US A 6.5 6.5

Bubble Motion US A 6.0 6.0

S ense Networks US A 6.0 6.0

Zoosk US A 6.0 6.0

Gather US A 5.3 5.3

MojoPages US A 5.0 5.0

Taomee China 5.0 5.0

Animoto US A 4.4 4.4

GameGround Is rael 4.1 4.1

R ingRevenue US A 3.5 3.5

Crowdcas t US A 3.0 3.0

YuMe US A 2.9 2.9

eRepublik S pain 2.8 2.8

Newser LLC US A 2.5 2.5

C lickFuel US A 2.5 2.5

Inigral US A 2.4 2.4

AdE x Media US A 2.3 2.3

GROU.PS US A 2.1 2.1

my6sense Is rael 2.0 2.0

OneTXT US A 2.0 2.0

Yapta US A 2.0 2.0

I Love R ewards Canada 1.8 1.8

C liqset US A 1.5 1.5

Glubble Netherlands 1.0 1.0

TodaCell Is rael 1.0 1.0

AdWhirl US A 1.0 1.0

L iquidP lanner US A 1.0 1.0

MashLogic US A 0.5 0.5

Jun-09 Total 45.3 15.3 28.5 67.8 34.0 5.3 196.1

Jul-09 Pandora Media US A 35. 0 35.0

Kontera Ltd. Is rael 15.5 15.5

Ning US A 15. 0 15.0

QuickP lay Media Canada 12. 0 12.0

Causes US A 10.0 10.0

Outspark US A 8.3 8.3

ConnectEdu US A 8.2 8.2

Acquia, Inc US A 8.0 8.0

S BNation US A 8.0 8.0

MediaMath US A 6.6 6.6

Metaversum Germany 6.3 6.3

Invodo US A 6.0 6.0

Quikr India Pvt. L td. India 4.1 4.1

OPEN S ports network US A 4.0 4.0

S tyleCas ter US A 4.0 4.0

Nexage US A 4.0 4.0

TweetDeck UK 3.2 3.2

Busca US A 2.6 2.6

ProtonMedia US A 2.5 2.5

Akademos US A 2.5 2.5

iLoop Mobile US A 2.0 2.0

Comunitae S pain 1.7 1.7

Lat49 Canada 1.5 1.5

Aloqa Germany 1.5 1.5

Tributes .com US A 1.2 1.2

CoTweet US A 1.1 1.1

C likthrough US A 1.0 1.0

Cellufun US A 1.0 1.0

Cognitive Match L imited UK 1.0 1.0

People Capital US A 0.5 0.5

BookFresh US A 0.5 0.5

Jul-09 Total 63.5 11.1 25.6 51.5 27.0 178.7

Financ ing - Las t Three Months (US$ m)

Fin. Amount (Million) Type of financing

Month Company Name Country Angel/S eed PIPE Series A Series B S eries C Series D Grand Total

Aug-09 Turbine US A 50.0 50.0

R ichRelevance US A 12.5 12.5

Traffiq US A 10.0 10.0

MediaMath US A 10.0 10.0

B ill.com US A 8.5 8.5

KODA US A 3.0 3.0

iS yndica US A 0.4 0.4

Aug-09 Total 13.4 22.5 8.5 50.0 94.4

Grand Total 122.1 15.3 39.6 115.8 94.0 82.3 469.1

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

Company Descriptions - Current Month Capital Market ActivityCompany HQ Webs ite Des cription

B ill.com United S ta tes www.bill.com B ill. com, Inc. offers an electronic cash management s ervice. Its s ervice s implifies the way companies manage bills , invoices , contracts , and

other documents . T he company delivers its s ervice through an on-demand S oftware a s a S ervice (S aaS ) model. C ashV iew is a W eb-based

s ys tem that a llows companies to s tore a ll documents , proces ses , mes s ages , and trans actions in one place. It gives companies a real-time

daily view of anticipated cash flow while s imultaneous ly proces s ing trans actions . T he company was formerly known as C ashV iew, Inc. and

changed its name to B ill. com, Inc. in J anuary, 2008. B ill. com, Inc. was founded in 2006 and is based in P alo Alto, C alifornia .

Friends Reunited United K ingdom www.friendsreunited.co.uk F riends R eunited G roup operates as an online community that connects people through a network of friends . It provides an online meeting

place for people to socia lize, make acqua intances , and find others who share their interes ts . T he company a ls o enables members to look up

friend’s W eb pages , and s hare photos and videos . In addition, it offers online da ting s ervices . T he company is based in the United K ingdom.

F riends R eunited G roup operates as a s ubs idia ry of IT V plc.

iS yndica United S ta tes www.isyndica.com iS yndica , a cloud-based digita l media dis tribution platform, s implifies online s elling by s yndica ting, promoting and tracking user content on

multiple es tablis hed channels . iS yndica ’s Upload Once - S ell E verywhere™ approach helps users increase revenue while reducing their

work load. B uilt on Amazon W eb S ervices (AW S ), our V irtua l Dis tribution S erver (VDS ) is a groundbreaking, patent pending, multi-category

s oftware-as -a-s ervice (S aaS ) dis tribution platform. iS yndica currently s upports photography and video.

Koda United S ta tes www.koda.us K ODA was founded with a mis s ion to create a pla tform that a llows emerging ta lent and smart companies to go beyond the resume or

traditional job pos ting. More profes s ional than F acebook but more pers onal than L inkedIn, K ODA looks to showcase profiles and employer

profiles that a llow both s ides of the hiring equation to get to know each other.

R ichRelevance United S ta tes www.richrelevance.com richrelevance, Inc. provides persona liza tion and product recommendation tools for the eCommerce s ites . It offers R ichrecs , which offers

product recommendations to pers onalize cus tomer's s hopping experience; myrecs that engages loyal s hoppers with a personalized page of

relevant product recommendations ; and richmail, which enables cros s -s elling and up s elling of relevant products . richrelevance, Inc. was

founded in 2005 and is headquartered in S an F rancis co, C alifornia . It has loca tions in S an Diego, C alifornia ; Dallas and Hous ton, T exas ; and

New Y ork, New Y ork.

Traffiq United S ta tes www.traffiq.com T R AFF IQ , Inc. , a display advertis ing marketplace, operates a digita l media management platform that connects buyers and s ellers of online

media . Its platform provides a s uite of enterpris e tools that enables negotiations for deal points and centra lized advertis ing operations ,

including trafficking, inventory management, tracking and optimization, and billing. T he company’s pla tform incorporates components of the

media planning, buying, and s elling proces s , including s ite s earch, inventory packaging tools , negotiation management, order execution,

automated R FP dis tribution, campa ign optimization, and publis her reconciliation/invoicing. It s erves advertis ers and publis hers . T he

company was founded in 2006 and is based in New Y ork, New Y ork with an additional office in V ienna, V irginia .

Turbine Inc. United S ta tes www.turbine.com Turbine, Inc. , an interactive media company, engages in developing, launching, and operating online enterta inment in North America . It

offers online games , including multiplayer online role-playing games . T he company operates s ocia l gaming communities . It a ls o s ells its

games through reta ilers in North America and E urope. Turbine, Inc. was formerly known as T urbine E nterta inment S oftware C orp. T he

company was founded in 1994 and is headquartered in Wes twood, Mas s achus etts .

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

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L IST OF D IS CLOS URE TE RMS :

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