09 08 25 web 2.0 weekly

SOFTWARE & SERVICES 25 AUGUST 2009

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

DAVID SHORE, CFA, MBA 416.860.6784

[email protected]

CONTENT DISTRIBUTION ACROSS PLATFORMS BECOMING KEY

MYSPACE BUYS LEADING FACEBOOK DEVELOPER; FACEBOOK CREATES TWITTER UPDATE CAPABILITY MySpace finally confirmed last week the much-rumoured acquisition of leading Facebook developer iLike. Terms of the deal are believed to be $13.5 mil lion upfront and $6.5 mill ion in retention payouts over t ime. With this acquisition, MySpace now owns the 14

th largest (according to www.appdata.com) Facebook developer – based on the number of

monthly active users. Facebook itself announced that Facebook Page owners would be able to automatically update their Twitter status with their Facebook updates. Twitter users have long been able to update their Facebook status with their Tweets. Clearly, the large social network players see the value in al lowing their users to cross-poll inate content across the different platforms.

A much better August than 2008: Total capital raised in August (so far) is $148.1 mil lion on 17 transactions. The average for August, month-to-date so far, is $8.7 mil lion. This is well ahead of the mere $82.3 mill ion (eight deals, $10.3 mil lion average) raised in August 2008. However, this is down sequential ly from June and July, with one week to go in the month. Total capital raised in July on 34 transactions was $190.2 mill ion, averaging $5.6 mil lion, and June was $204.1 mill ion (averaging $5.0 mill ion).

Financing Activity Last Twelve Months

16.2

7.0

9.7

7.0

6.5

7.1

6.66.2

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8.7

10.3

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Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09

(US

$m

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0.0

2.0

4.0

6.0

8.0

10.0

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14.0

16.0

18.0

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$m

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Total Average*May-09 includes $200m FB investment

A strong price performance week: Most companies in our universe had strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 37 companies showing positive returns on the week – reversing the prior weeks decline. Frogster (XTRA:FRG) led the group with a 19.6% return, while Ynk Korea (KOSE:A023770) had the worst return, dropping 14.6% 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: Our Web 2.0 universe contains 91 companies, with a combined market cap of ~$65 bill ion (Figure 1). The median market cap for the group is ~$65 million, with average trail ing revenue of ~$160 mil lion (median $57 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 trail ing revenue (median 1.9x) and 11.9x trai ling EBITDA (median 9.4x). Eighteen 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. 6/30/2009 AC LZ OTCB B US D United S ta tes 0.57 15.8 4.4 (3.7) -83.3% 4.7x - 11

Actoz S oft C o. , Ltd. 3/31/2009 A052790 K OS E KR W S outh K orea 19,150 133.1 93.1 20.2 21.7% 1.1x 5.1x NA

AQ Interactive, Inc. 3/31/2009 3838 T S E J P Y J apan 50,400 29.0 65.4 4.1 6.3% - - 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. 6/30/2009 B S GC OTCB B US D United S ta tes 0.02 1.0 0.1 (1.5) NM 32.5x - 4

B etawave C orporation 6/30/2009 BW AV OTCB B US D United S ta tes 0.08 2.3 9.4 (12.6) NM - - 45

B eyond C ommerce, Inc. 6/30/2009 B YOC OTCB B US D United S ta tes 0.18 8.3 11.7 (12.8) NM 1.2x - 43

B right Things plc 9/30/2008 AIM:B G T AIM GB P United K ingdom 0.01 4.0 0.3 (1.9) NM 14.6x - 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. 6/30/2009 CHIN.A NasdaqGS US D Hong K ong 2.63 278.7 361.6 25.1 6.9% 0.8x 10.9x 2,227

C hangyou.com L imited 6/30/2009 C YOU NasdaqGS US D China 38.08 2,094.4 241.2 147.2 61.0% 7.5x 12.4x 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 394 1,009.5 56.3 31.6 56.0% 16.7x 29.9x NA

C LIC K E R Inc. 5/31/2009 C LK Z OTCB B US D United S ta tes 0.01 0.4 2.5 (1.2) -45.8% 0.2x - 22

C ornerWorld C orpora tion 4/30/2009 CW R L OTCB B US D United S ta tes 0.06 5.3 3.9 NM NM 4.0x - NA

C yberplex Inc. 6/30/2009 T S X:C X T S X CAD Canada 2 97.1 91.0 9.8 10.8% 0.8x 7.8x NA

DADA S pA 6/30/2009 CM:DA CM E UR Italy 6.38 148.1 236.5 31.1 13.1% 0.8x 6.3x NA

DXN Holdings B hd 5/31/2009 DXN K LS E MYR Ma lays ia 0.53 34.8 76.5 11.0 14.4% 0.6x 4.5x 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. 6/30/2009 DGLP OTCB B US D United S ta tes 0.06 4.6 1.0 (1.4) NM 6.7x - 7

Digita lT own, Inc. 5/31/2009 DGTW OTCB B US D United S ta tes 1.40 38.3 NM (2.5) NM - - 3

Dolphin Digita l Media , Inc. 3/31/2009 DPDM OTCB B US D United S ta tes 0.39 20.9 0.8 (3.7) NM 28.3x - NA

E olith Co. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 860 50.2 14.8 (3.5) -23.6% 3.5x - NA

E xtens ions , Inc. 3/31/2009 E XT I OTC P K US D United S ta tes 0.08 3.6 NM NM NM - - 2

F luid Mus ic Canada , Inc. 6/30/2009 T S X:FMN T S X CAD United S ta tes 1.32 64.5 5.3 (5.1) -95.2% 10.6x - NA

F rogs ter Interactive P ictures AG 12/31/2008 F R G XT R A E UR Germany 16.75 60.6 3.3 (6.3) NM 17.9x - NA

G amania Digita l E ntertainment C o. , Ltd. 6/30/2009 6180 G T S M TWD T aiwan 50.30 233.0 139.1 24.6 17.7% 1.5x 8.5x NA

G ameOn C o Ltd. 6/30/2009 3812 T S E J P Y J apan 104,700 107.0 77.5 19.0 24.5% 0.5x 1.9x NA

G eoS entric Oyj 3/31/2009 G E O1V HLS E E UR F inland 0.05 64.3 6.1 (15.7) NM 9.9x - 108

G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D China 8 1,754.9 198.5 124.1 62.5% - - 1,570

G igaMedia Ltd. 3/31/2009 G IGM NasdaqGS US D T aiwan 4.73 257.9 183.6 NM NM 1.0x - 751

G ravity Co. , Ltd 3/31/2009 GR V Y NasdaqGM US D S outh K orea 2.39 66.4 46.1 12.7 27.5% - - 469

G ree, Inc. 6/30/2009 T S E :3632 T S E J P Y J apan 8 ,540 2,021.1 147.5 88.6 60.1% 12.9x 21.5x NA

GungHo Online E ntertainment, Inc. 3/31/2009 3765 OS E J P Y J apan 243,000 294.3 109.0 19.6 18.0% 2.4x 13.6x NA

HanbitS oft, Inc. 3/31/2009 A047080 K OS E KR W S outh K orea 3 ,795 67.0 55.6 (14.9) -26.8% 0.9x - NA

IAC /InterActiveC orp. 6/30/2009 IAC I NasdaqGS US D United S ta tes 19.04 2,520.9 1,392.3 52.7 3.8% 0.6x 14.8x 3,200

IAS E nergy, Inc. 1/31/2009 IAS A.E OTCB B US D C anada 0.15 10.5 0.0 (0.8) NM - - NA

is eemedia Inc. 3/31/2009 IE E T S XV CAD Canada 0.05 2.4 1.6 (5.1) NM 0.9x - NA

J umbuck E nterta inment P ty Ltd. 12/31/2008 AS X:J MB AS X AUD Aus tralia 0.38 15.4 15.0 5.6 37.2% 0.7x 1.8x 72

K AB Dis tribution Inc. 6/30/2009 T S X:K AB T S X CAD Canada 1 83.4 68.8 4.0 5.8% - - NA

K ingsoft C o. Ltd. 3/31/2009 3888 S E HK HKD China 9 1,214.6 129.1 52.0 40.3% 9.4x 23.4x 2,271

L ingo Media C orporation 3/31/2009 T S XV :LM T S XV CAD Canada 1.12 13.0 1.0 (1.6) NM 12.4x - NA

L iveW orld Inc. 6/30/2009 LVWD OTCP K US D United S ta tes 0.05 1.5 10.6 (0.1) -1.2% 0.0x - NA

LookS mart, Ltd. 6/30/2009 LOOK NasdaqGM US D United S ta tes 1.28 21.9 56.8 (4.4) -7.8% - - 90

Magnitude Information S ys tems Inc. 3/31/2009 MAGY OTCB B US D United S ta tes 0.01 3.0 0.1 (3.1) NM - - 14

Mixi, Inc. 6/30/2009 2121 T S E J P Y J apan 614000.00 1,000.3 129.3 43.7 33.8% 6.9x 20.3x NA

Modern T imes G roup Mtg AB 6/30/2009 MTG B OM S E K S weden 310.00 2,901.8 1,950.0 299.6 15.4% 1.8x 11.6x 2,969

MOKO.mobi L imited 12/31/2008 MK B AS X AUD Aus tralia 0.07 5.2 1.2 (2.5) NM 3.3x - NA

Myriad G roup AG 12/31/2008 MY R N S W X CHF S witzerland 4.50 90.4 40.0 0.8 1.9% 2.5x - 405

NE OW IZ G ames Corpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 29650.00 503.0 199.5 53.6 26.8% 2.5x 9.2x NA

NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HKD China 7 452.8 87.0 34.4 39.5% 3.8x 9.5x 2,426

Netease.com Inc. 6/30/2009 NT E S NasdaqGS US D China 42.28 5,472.2 472.2 297.3 63.0% - - 3,109

NeuLion Incorporated 6/30/2009 T S X:NLN T S X CAD Canada 1.10 116.9 21.5 (13.0) -60.3% 5.0x - 237

NeXplore C orporation 6/30/2008 NXP C OTCP K US D United S ta tes 1 33.5 0.7 (6.2) NM - - NA

Ngi G roup Inc. 6/30/2009 2497 T S E J P Y J apan 32400.00 42.4 87.9 6.5 7.4% - - NA

Northgate T echnologies L imited 6/30/2009 590057 B S E INR India 39.40 28.3 81.9 (40.9) -50.0% 0.3x - NA

Open T ext C orp. 6/30/2009 OT E X NasdaqGS US D C anada 35.95 2,018.6 785.7 205.1 26.1% 2.6x 10.0x NA

Openwave S ys tems Inc. 6/30/2009 OPW V NasdaqGS US D United S ta tes 2.86 238.2 191.7 5.3 2.8% 0.7x 24.4x NA

P erfect W orld C o. , Ltd. 6/30/2009 PW R D NasdaqGS US D China 39.01 1,918.6 255.6 142.1 55.6% 0.5x 1.0x 2,096

P NI Digita l Media Inc. 6/30/2009 T S XV :P N T S XV CAD Canada 1.67 53.2 21.3 2.3 11.0% 2.4x 21.9x NA

Quepasa C orp. 6/30/2009 QP S A OTCB B US D United S ta tes 2 19.1 0.2 (10.6) 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 1.05 145.7 150.9 19.7 13.1% 0.0x 0.2x NA

S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA NasdaqGS US D China 48.75 3,255.0 570.3 261.0 45.8% - - 3,124

S hutterfly, Inc. 6/30/2009 S FLY NasdaqGS US D United S ta tes 15.15 385.7 218.6 27.3 12.5% 1.5x 11.8x 514

S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9310.00 314.4 185.5 12.1 6.5% 1.7x 26.1x NA

S NAP Interactive, Inc. 6/30/2009 S T V I OTC B B US D United S ta tes 0 4.3 3.5 0 .9 27.0% 0.8x 2.9x 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. 6/30/2009 S C LW OTCB B US D United S ta tes 0.60 26.6 0.0 (5.6) NM - - NA

S ohu.com Inc. 6/30/2009 S OHU NasdaqGS US D China 64.52 2,473.3 485.1 209.6 43.2% 4.1x 9.4x 3,197

S park Networks , Inc. 6/30/2009 LOV AME X US D United S ta tes 2 44.2 50.5 10.8 21.3% 0.8x 3.9x 183

S pectrumDNA, Inc. 6/30/2009 S P XA OTCB B US D United S ta tes 0 11.0 0.1 (2.5) NM - - 7

T encent Holdings Ltd. 6/30/2009 700 S E HK HKD China 120 28,087.7 1,391.1 685.6 49.3% 22.1x 44.9x 6,194

T he P arent C ompany 8/2/2008 K IDS .Q OTCP K US D United S ta tes 0.02 0.5 112.0 (13.5) -12.0% 0.2x - 347

T he9 L imited 12/31/2008 NC T Y NasdaqGS US D China 8.44 215.3 250.5 85.4 34.1% - - 1,626

T heS treet. com, Inc. 3/31/2009 T S CM NasdaqGM US D United S ta tes 2.31 70.7 67.0 1.9 2.9% 0.1x 3.2x 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 8.61 93.0 216.6 (0.7) -0.3% 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 24.3 0.1 0.2% 0.2x - NA

United Online Inc. 6/30/2009 UNTD NasdaqGS US D United S ta tes 7.40 620.4 949.8 203.2 21.4% 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 11 937.8 563.6 99.0 17.6% 1.4x 8.1x 1,189

V OIS , Inc. 3/31/2009 VOIS OTCB B US D United S ta tes 0 5.0 0.0 (1.1) NM - - 4

W ebzen Inc. 6/30/2009 W ZE N NasdaqGM US D S outh K orea 2.82 33.4 22.3 2.2 9.9% - - NA

W izzard S oftware C orporation 6/30/2009 W ZE AME X US D United S ta tes 0.45 22.7 5.3 (4.5) -84.9% 4.5x - 110

Worlds . com Inc. 3/31/2009 WDDD OTCB B US D United S ta tes 0.11 5.7 0.0 (0.8) NM - - 1

W oozyF ly, Inc. 6/30/2009 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 6/30/2009 O1B C XT R A E UR Germany 27.49 207.5 57.5 16.6 28.8% 2.7x 9.4x 174

Y edangOnline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 8 ,550 103.3 55.2 11.9 21.6% 2.0x 9.4x NA

Ynk K orea Inc. 3/31/2009 A023770 K OS E KR W S outh K orea 4 ,075 17.5 10.6 (0.8) -7.6% - - NA

High 28,087.7 1,950.0 685.6 63.0% 32.5x 44.9x 6,194

Low 0.0 0.0 -40.9 -98.9% 0.0x 0.2x 1

Average 720.6 160.4 38.1 5.0% 5.0x 11.9x 860Median 65.5 56.8 2.3 13.1% 1.9x 9.4x 376

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 $148.1 million: Online gaming company Turbine, Inc. raised $50 mill ion in August – the largest transaction in August. Mint, a vertical community site (offering web-based solutions for f inancial management), was a distant second raising $14.1 mill ion. Total capital raised in July on 34 transactions was $190.2 mil lion, averaging $5.6 mill ion, and June was $204.1 mill ion (averaging $5.0 mil lion). The average for August, month-to-date so far, is $8.7 mill ion.

Financing Activity Last Twelve Months

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

Turbine, Inc. $50 million raise largest in August: On the capital raise front, Turbine, Inc. raised $50 mill ion, the largest transaction so far in August. Mint was a distant second securing a $14.1 mil lion round. Closely behind was RichRelevance raising $12.5 mill ion. Of the total 17 transactions thus far, 12 were below $10 mill ion each, bringing the total capital raised for August to $148.1 mill ion. In addition, Friends Reunited was acquired for $42 mil lion and MySpace bought iLike for $20 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 mil lion) and number of transactions (13), fol lowed by the Social Network sector also with 13 transactions, raising $105.2 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 continue to outpace NASDAQ recovery: Our Web 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until 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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/2009

2/2

3/2

009

3/9

/2009

3/2

3/2

009

4/6

/2009

4/2

0/2

009

5/4

/2009

5/1

8/2

009

6/1

/2009

6/1

5/2

009

6/2

9/2

009

7/1

3/2

009

7/2

7/2

009

8/1

0/2

009

8/2

4/2

009

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

Figure 5. Web 2.0 Price Performance Source. Capital IQ

A strong price performance week: Most companies in our universe had strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 37 companies showing positive returns on the week – reversing the prior weeks decline. Frogster (XTRA:FRG) led the group with a 19.6% return, while Ynk Korea (KOSE:A023770) had the worst return, dropping 14.6% in the week.

1 Week Price Performance

-14.6%-11.3%

-10.1%-8.0%

-6.2%-5.8%-5.5%

-4.4%-3.7%-3.6%-3.0%

-1.2%0.0%0.0%0.9%1.2%1.3%1.6%1.7%1.7%1.9%2.0%2.1%2.7%2.7%2.7%3.5%3.5%3.7%4.3%4.4%4.8%4.9%5.1%5.6%

6.7%7.1%7.3%7.4%7.5%7.6%7.7%7.7%7.7%7.9%

10.0%12.0%12.0%

14.9%18.9%19.6%

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

Y nk Korea Inc .Gamania Digita l Entertainment Co. ,

A ctoz S of t Co. , Ltd.HanbitS of t, Inc .

NEOWIZ Games CorporationOpen Tex t Corp.

S K Communications Co. , Ltd.Chines e Gamer International

Tree.Com, Inc .Y edangOnline Corp.

Cyberplex Inc .Ngi Group Inc .

XING AGNeuLion Incorporated

Giant Interactive Group, Inc .United Online Inc .

S park Netw orks , Inc .AQ Interactive, Inc .GameOn Co Ltd.

Mix i, Inc .The9 L imited

Changyou.com LimitedOpenw ave S ys tems Inc .

TheS treet.com, Inc .S hutterf ly , Inc .

K ings of t Co. Ltd.IAC/InterA ctiveCorp.

CDC Corp.Webzen Inc .

Tencent Holdings Ltd.PNI Digita l Media Inc .

DADA S pAEolith Co. Ltd.

Neteas e.com Inc .Myriad Group AGLookSmart, Ltd.Quepas a Corp.G igaMedia Ltd.

S handa Interactive Entertainment Ltd.V alueClick Inc .

Modern Times Group Mtg A BS ohu.com Inc .

Digita lTow n, Inc .Gree, Inc .

Perfect World Co. , Ltd.Fluid Mus ic Canada , Inc .NetDragon WebS of t, Inc .L ingo Media Corporation

Northgate Technologies L imitedGravity Co. , Ltd

Frogs ter Interactive Pictures AG

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

United Online Inc. (NasdaqGS :UNTD) United Online Inc. Announces E xecutive P romotions On Augus t 14, 2009, F rederic A. R anda ll, J r. , who has served as the E xecutive V ice P res ident, G enera l C ounsel and S ecreta ry of United

Online Inc. , was elected to the pos ition of E xecutive V ice P res ident and Chief S trategy Officer, a newly-created executive officer pos ition of

the company, effective Augus t 15, 2009. In his new role, Mr. R anda ll will focus on matters related to s trategic planning and acquis itions .

C harles B . Ammann, who has served as the company's S enior V ice P res ident, Deputy Genera l C ounsel and As s is tant S ecretary, was

promoted to the pos ition of E xecutive V ice P res ident, G enera l C ounsel and S ecreta ry of the company, effective Augus t 15, 2009.

SNM Global Holdings (OTCPK :SNMN) S NM G lobal S eeking Acquis itions It is learnt that, S NM G loba l Holdings continues its ques t to s ecure funding to pay down debt and continue with the development of

infras tructure and s eeking acquis itions . T he company is a lso exploring expans ion into other indus tries that will complement as well as

divers ify their Media –E ntertainment/S ports content development, delivery and dis tribution model.

DigitalPos t Interactive, Inc .

(OTCBB :DGLP)

Digita lP os t Interactive Inc. R eports E a rnings R es ults for

the S econd Quarter and S ix Months E nded J une 30,

2009

Digita lP os t Interactive Inc. reported earnings results for the s econd quarter and s ix months ended J une 30, 2009. T ota l revenue for s econd-

quarter 2009 rose more than 161% to $376,400, from $144,200 in second-quarter 2008. T he increase was driven by more than 211% growth

in s ubscriptions revenue, which was due to the company's partnership with K iddie K andids , and more than 126% growth in profes s iona l

s ervices revenue. C ash used in operations improved s ignificantly to $2,700 for s econd-quarter 2009 as compared to $460,800 for the s ame

period las t year. T he improvement reflects the company's ongoing effort to s treamline operations while driving more revenue through the

growth of recurring s ubs criptions and through the profes s iona l s ervices contracts that have been awarded. Net los s for second-quarter 2009

narrowed to $424,200 from a net los s of $1.5 million in s econd-quarter 2008.

F or the firs t s ix months of 2009, net cas h us ed by operating activities declined to $64,900 from $873,000 for the firs t s ix months of 2008.

T ota l revenue was $687,400 compared to $195,500 in the precious year period.

CDC Corp. (NasdaqGS :CHIN.A) CDC Corp. R eports Unaudited C onsolidated E arnings

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

J une 30, 2009

CDC Corp. reported unaudited 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 attributable to controlling interes t was $3,249,000 or $0.03 bas ic and diluted earnings per s hare on

revenue of $81,654,000 compared to net los s attributable to controlling interes t of $9,996,000 or $0.09 bas ic and diluted los s per share on

revenue of $111,040,000 for the s ame period a year ago. Income from continuing operations was $3,409,000 or $0.03 bas ic and diluted

earnings per share from continuing operations compared to los s from continuing operations of $7,450,000 or $0.07 bas ic and diluted los s per

s hare from continuing operations for the s ame period a year ago. Income before income taxes was $4,662,000 compared to los s before

income taxes of $6,978,000 for the s ame period a year ago. Adjus ted E B ITDA from continuing operations was $12,477,000 compared to

$9,973,000 for the s ame period a year ago. Net cas h provided by operating activities was $11,168,000 and capital s pend in purchase of

property, plant & equipment was $391,000 compared to net cash provided by operating activities of $5,573,000 and capita l s pend in purchase

Myriad Group AG (SWX:MYRN) Myriad G roup AG S igns C ontract with T -Mobile C zech

R epublic to P rovide the US S D P latform

Myriad G roup AG announced that it has been s elected by T -Mobile C zech R epublic to provide the US S D platform for its cus tomer ca re

s ervice. T he solution exploits the s trengths of the Myriad S ervices P la tform to a llow the operator to offer US S D as a s imple trigger for

s ubscriber self s ervice, so helping to reduce cus tomer churn. T he s olution is a s elf-service s ys tem that a llows cus tomers to quickly acces s

s ervices and information on their mobile hands et and change their s ettings . T he solution improves cus tomer s a tis faction, reducing the need

for cus tomer service reques ts and can be upgraded to support advanced self s ervices us ing graphical interfaces in the future. F or T -Mobile

the us e of US S D provides an intuitive channel which a llows any cus tomer to immediately self-provis ion cus tomer ca re.

Gamania Digital E ntertainment Co.,

L td. (GTSM:6180)

Gamania Digita l E nterta inment C o. Ltd. R eports Audited

Consolidated F inancia l R es ults for the F irs t S ix Months

E nded J une 30, 2009

G amania Digita l E ntertainment C o. L td. reported audited consolidated financial res ults for the firs t s ix months ended J une 30, 2009. F or the

quarter, the company reported consolidated operating revenue of TWD 2,671,670,000, operating income of TWD 384,453,000, net income of

TWD 291,943,000 and earnings per s hare (E P S ) of TWD 2.00. B enefited from the product divers ification s tra tegy, the operating revenue

s trongly increased 42.37% year-over-year for the firs t ha lf year 2009. T he operating revenue of the parent company a lso performed quite well

and grew 24.66% year-over-year due to the contribution from three flagship titles .

L ingo Media Corporation (TSXV:LM) Lingo Media C orporation, Annua l G enera l Meeting, Aug

18, 2009

L ingo Media C orporation, Annual G eneral Meeting, Aug 18, 2009, a t 11:00 E as tern Daylight. Location: W eirF oulds LLP , 130 K ing S treet

W es t, S uite 1500, T oronto, ON M5X 1J 5, Ontario,C anada. Agenda : T o receive the audited financia l s tatements for the fis ca l year ended

December 31, 2008 and the report of the Auditors thereon the company; to elect the directors of the company; to appoint C ollins B arrow

Toronto LLP as auditors for the ensuing year and to authorize the directors to fix their remuneration; to approve an ordinary resolution of

dis interes ted shareholders authoriz ing the amendment of the company's s tock incentive plan to increas e the maximum number of s hares

is suable under the P lan; and to transact such other bus ines s as may properly come before the Meeting

.

Giant Interactive Group, Inc .

(NYSE :GA)

G iant Interactive G roup Inc. R eports Unaudited

Consolidated F inancia l R es ults for the S econd Quarter

E nded J une 30, 2009 ; P rovides R evenue G uidance for

the T hird Quarter 2009

G iant Interactive G roup Inc. reported unaudited consolidated financia l res ults for the second quarter ended J une 30, 2009. F or the quarter,

the company reported net revenue was R MB 364.1 million compared to R MB 373.5 million in the firs t quarter 2009 and R MB 504.8 million in

the s econd quarter 2008. Net income attributable to the company's shareholders was R MB 231.9 million compared to R MB 231.9 million in

the firs t quarter 2009 and R MB 350.6 million in the second quarter 2008. T he year-over-year decrease is attributable to the decreas e in net

revenue. Non-GAAP net income attributable to the company's shareholders excluding non-cash s hare-based compens ation was R MB 239.8

million compared to R MB 240.2 million in the firs t quarter 2009 and R MB 362.5 million in the s econd quarter 2008. B as ic and diluted non-

GAAP earnings excluding non-cas h s hare-based compens ation per ADS were R MB 1.06 and R MB 1.03, res pectively, compared to bas ic

and diluted non-GAAP earnings per ADS of R MB 1.50 and R MB 1.45, res pectively, for the second quarter 2008, and bas ic and diluted non-

GAAP earnings per ADS of R MB 1.06 and R MB 1.03, res pectively, for the firs t quarter 2009. T he company reported income from operations o

IAC /InterActiveCorp. (NasdaqGS : IAC I) IAC /InterActiveCorp. Appoints Louis C as tle as C E O IAC/InterActiveCorp. announced that interactive entertainment veteran and lifetime achievement award recipient Louis C as tle has joined

IAC 's Ins tantAction Holdings as its new C E O. Under C as tle's leadership, Ins tantAction will purs ue an expanded bus ines s s trategy that will

build upon the vis ion of true, frictionles s web publis hing, and will more effectively connect developers directly to consumers while creating a ll

new IP acros s multiple gaming pla tforms and genres . C as tle, a 26-year gaming indus try veteran, joins the online gaming leader to help

s pearhead the trans ition of ma ins tream video games to the web. C as tle s ucceeds former CE O J os h W illiams who will as sume the role of

fellow and chief technologis t at Ins tantAction.

UOMO Media, Inc (OTCBB :UOMO) UOMO Media, Inc. R eports Audited R evenue R esults for

the Y ear E nded April 30, 2009

UOMO Media, Inc. reported audited revenue res ults for the year ended April 30, 2009. F or the period, the company reported revenue of

$858,137 s etting a record as the highes t in the company's his tory with a corresponding growth in tota l as s ets .

Soc ialwis e, Inc . (OTCBB :SCLW) S ocia lwis e Inc. Appoints Mark Miller to the C ompany's

B oard of Advis ors

S ocia lwise Inc. announced the appointment of Mark Miller, former S enior V ice P res ident of DC S hoes and action s ports indus try veteran to

the company's B oard of Advis ors . In this role, he will us e his extens ive network of online merchants , Actions S ports athletes , and indus try

connections to pos ition B illMyP arents as a leading youth payment s ys tem. He will be in charge of s ecuring partnerships with leading online

action s ports brands and reta ilers as well as building us er base of young consumers and their parents . Mark Miller has over twenty-five years

experience working in Action S ports and youth culture bus ines ses . As a senior executive, Mark focused on developing and executing go-to-

market s tra tegies for consumer goods companies . Mos t recently, he s erved as the S enior V ice P res ident and G eneral Manager of DC

S hoes , a subs idia ry of Quiks ilver Inc. , where he managed the Americas ' divis ion including s trategic partnerships with both reta il and online

dis tribution channels .

SNAP Interactive, Inc . (OTCBB :STVI) S NAP Interactive Inc. Announces Unaudited

Consolidated E arnings R esults for the S econd Quarter

and S ix Months E nded J une 30, 2009

S NAP Interactive Inc. announced unaudited consolidated earnings res ults for the second quarter and s ix months ended J une 30, 2009. F or

the quarter, the company's revenue was $784,242, as compared to $533,257 for the three months ended J une 30, 2008, a 47% increas e.

Net income for the quarter was $46,430 as compared to net income of $144,862 or $0.01 per diluted s hare for the three months ended J une

30, 2008, a 68% decrease. Income from operations was $131,035 compared with $145,133 for the s ame period a year ago. Income before

provis ion for income taxes was $137,985 compared with $144,862 for the s ame period a year ago.

F or the s ix months , the company's revenue was $1,553,214, as compared to $1,053,159 for the s ix months ended J une 30, 2008, a 47%

increase. T he increase in revenue was primarily due to higher engagement on its applica tions in 2009 compared to the s ame time period in

2008 as well as the introduction of premium features to its applications to generate additional revenue. Net income for the period was

$112,902 or $0.01 per diluted share as compared to net income of $335,371 or $0.03 per diluted share for the s ix months ended J une 30, 200

Open Text Corp. (NasdaqGS :OTEX) Open T ext C orp. P rovides E a rnings Guidance for the

Y ear of 2010

Open T ext C orp. provided earnings guidance for the year of 2010. F or the year, the company expects to s ee s ingle-digit growth for revenues ,

double-digit growth for adjus ted earnings .

K ingsoft Co. L td. (S EHK :3888) K ingsoft C o. Ltd. Announces to R elease Open B eta T es t

of J X3 Online

K ingsoft C o. L td. announced that it would releas e the date for the open beta tes t of J X3 Online at a pres s conference to be held on Augus t

24, 2009. T he company will a lso launch open beta tes ts of J X 2 Online W ai Zhuan, a s is ter game to J X 2 Online, and Chun Qiu W ai Zhuan,

another s is ter game to CQ Online, on Augus t 20 and Augus t 21 respectively. S o will the firs t expans ion pack of T he F irs t Myth 2 on Augus t

27. T hree more online games are under proprieta ry development and will meet gamers by the end of 2009, including Y ue Y ing Chuan S huo

and Du G u J iu J ian. Y ue Y ing Chuan S huo is being developed by Zhuhai Xis hanju S oftware C o. L td. (S eason S tudio) under K ings oft.

IB3 Networks , Inc . (OTCBB : IBNW) IB 3 Networks Inc. will Change its T icker to IB NWE from

IB NW

E ffective Augus t 24, 2009, IB 3 Networks Inc. will change its OTCB B s tock ticker s ymbol to IB NWE from IB NW .

Beyond Commerce, Inc.

(OTCBB :BYOC)

Beyond Commerce, Inc. has filed a S helf R egis tration in

the amount of $15.00 million.

B eyond Commerce, Inc. has filed a S helf R egis tra tion in the amount of $15.00 million.

Moggle, Inc Moggle, Inc has filed a S helf R egis tration in the amount

of $12.00 million.

Moggle, Inc has filed a S helf R egis tra tion in the amount of $12.00 million.

ValueC lick Inc . (NasdaqGS :VCLK ) B arrack , R odos & B acine Announces S ummary Notice of

P roposed V alueC lick Inc. C las s Action S ettlement and

S ettlement Hearing

B arrack, R odos & B acine announced that purs uant to R ule 23 of the F ederal R ules of C ivil P rocedure and an Order of the C ourt, that a

s ettlement for $10 million in cas h has been propos ed in the above-captioned certified clas s action aga ins t V alueC lick Inc. A hearing will be

held before the Honorable Dean D. P regers on, a t the United S ta tes Dis trict C ourt for the C entral Dis trict of C alifornia , W es tern Divis ion, 312

North S pring S treet, Los Angeles , C a lifornia 90012, at 10:00 a .m. , on November 9, 2009 to determine whether the proposed s ettlement

s hould be approved by the C ourt as fair, reasonable, and adequate, and to cons ider the applica tion of P laintiffs ' C ounsel for attorneys ' fees

and reimbursement of expens es .

Wizzard S oftware Corporation

(AMEX:WZE )

Wizzard Media Announces T ii P odcas t App Hits T op 100

L is t in iT unes App S tore

W izzard S oftware C orporation announced the ava ilability of the T ii P odcas t iP hone App currently ranked number 58 on the 100 T op P a id

Apps lis t in the P roductivity category after only three days in the iT unes App S tore. T he new App, priced a t $1.99, is the companion App for

the T oday in iP hone podcas t. In addition to providing direct s treaming acces s to the entire back catalog of T oday in iP hone podcas t

epis odes , it a lso offers exclus ive bonus content with iP hone T ips , T ricks and T utoria ls via audio and video footage. T he company is offering

cus tomized podcas t companion Apps to the 11 600 podcas ts on the W izzard Network as well as other interes ted top podcas ts as a new

means to monetize the content they create while offering their audience members an enhanced viewing experience.

Open Text Corp. (NasdaqGS :OTEX) Open T ext C orp. Announces Unaudited C onsolidated

E arnings R esults for the F ourth Quarter and F ull Y ear

E nded J une 30, 2009

Open T ext C orp. announced unaudited consolidated earnings results for the fourth quarter and full year ended J une 30, 2009. F or the

quarter, the company reported income from operations of $34,395,000 aga ins t $29,293,000 a year ago. Income before income taxes was

$28,508,000 agains t $39,875,000 a year ago. Net income was $19,481,000 or $0.36 per diluted share on tota l revenues of $203,356,000

aga ins t $27,254,000 or $0.51 per diluted s hare on tota l revenues of $200,269,000 a year ago. Net cas h provided by operating activities was

$38,627,000 agains t $44,611,000 a year ago. Acquis ition of capita l as sets was amounted to $5,842,000 aga ins t $1,481,000 a year ago. Non-

GAAP based adjus ted net income was $39.2 million or $0.73 per diluted s hare agains t $33.3 million or $0.63 per diluted share a year ago.

Non-GAAP net income was $41.6 million or $0.78 per diluted s hare on non-GAAP revenues of $203.9 million.

F or the year, the company reported income from operations of $97,584,000 aga ins t $100,379,000 a year ago. Income before income taxes

was $80,777,000 agains t $76,497,000 a year ago. Net income was $56,938,000 or $1.07 per diluted s hare on tota l revenues of $785,665,000

DigitalFX International, Inc .

(OTCBB :DGFX)

Digita lF X International Announces E xecutive C hanges On Augus t 17, 2009, Digita lF X International, Inc. 's Chief Operating Officer, Allen Langford, res igned his pos ition with the company for

persona l reas ons and the company appointed Mr. J ohn P retto, age 46, as its C hief Operating Officer, pending approva l by the company's

B oard of Directors . Mr. P retto has over twenty years of bus ines s and Information technology management experience including s erving on

the board of directors of other publicly traded corporations . T he company's B oard of Directors approved Mr. P retto's appointment as the

C hief Operating Officer on Augus t 20, 2009, effective as of Augus t 17, 2009.

Figure 7. Key Developments Source. Capital IQ

VAL UAT IO N

Online Gaming companies lead market-cap charts: Fourteen companies in our Web 2.0 universe top US$1 bill ion in market capitalization (Figure 8). Fifty-seven of the 91 companies have market caps under US$100 mil lion, with 25 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 Cap (USD m)

0.00.00.00.10.30.40.50.61.01.01.51.82.32.42.63.03.64.04.34.65.05.25.35.78.310.511.012.913.015.415.817.519.119.520.921.922.726.628.329.033.433.534.838.342.444.250.253.260.664.364.566.467.070.783.490.493.097.1103.3107.0116.9133.1145.7148.1207.5215.3233.0238.2257.9278.7294.3314.4385.7452.8503.0

620.4937.81000.31009.5

1754.91918.6

2018.62021.12094.4

2473.32520.9

2901.83255.0

1214.6

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

S ocia l Media V enures , Inc .Dibz International, Inc .S NM G lobal HoldingsTota l S port Online A S

China Gatew ay CorporationCLICKER Inc .

The Parent CompanyA s s oc iated Media Holdings Inc .

B igs tring Corp.Unis erve Communications Corp.

L iveWorld Inc .Wynds torm CorporationBetaw ave Corporation

is eemedia Inc .WoozyFly , Inc .

Magnitude Information S ys tems Inc .Ex tens ions , Inc .B right Things plc

S NAP Interactive, Inc .DigitalPos t Interactive, Inc .

V OIS , Inc .MOKO.mobi L imited

CornerWorld CorporationWorlds .com Inc .

Beyond Commerce, Inc .IA S Energy , Inc .

S pectrumDNA , Inc .UOMO Media , Inc

L ingo Media CorporationJumbuck Enterta inment Pty Ltd.

A cceleriz e New Media , Inc .Y nk Korea Inc .Quepas a Corp.

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

LookSmart, L td.Wiz z ard S oftw are Corporation

S oc ia lw is e, Inc .Northgate Technologies L imited

AQ Interactive, Inc .Webzen Inc .

NeXplore CorporationDXN Holdings BhdDigitalTow n, Inc .Ngi G roup Inc .

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

PNI Digital Media Inc .Frogs ter Interactive Pic tures AG

GeoS entric Oy jFluid Mus ic Canada, Inc .

Grav ity Co. , L tdHanbitS oft, Inc .

TheS treet.com, Inc .KA B Dis tribution Inc .Myriad Group AG

Tree.Com, Inc .Cyberplex Inc .

Y edangOnline Corp.GameOn Co Ltd.

NeuLion IncorporatedA ctoz S oft Co. , L td.

OAO RBC Information S ys temsDADA S pAXING AG

The9 L imitedGamania Digita l Entertainment Co. , L td.

Openw ave S ys tems Inc .G igaMedia Ltd.

CDC Corp.GungHo Online Enterta inment, Inc .

S K Communications Co. , L td.S hutterf ly , Inc .

NetDragon WebS oft, Inc .NEOWIZ Games Corporation

United Online Inc .V a lueClick Inc .

Mix i, Inc .Chines e Gamer International

K ings oft Co. L td.G iant Interactive G roup, Inc .

Perfect World Co. , L td.Open Text Corp.

Gree, Inc .Changyou.com L imited

S ohu.com Inc .IAC/InterActiveCorp.

Modern Times Group Mtg A BS handa Interactive Enterta inment Ltd.

Neteas e.com Inc .Tencent Holdings Ltd.

Figure 8. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 4.8x: The overall average TEV/Revenue (LTM) multiple for our group is 5.0x (vs. 4.8x last week) (Figure 9). Two companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 32.5x, followed by Dolphin Digital Media, Inc. (OTCBB:DPDM) at 28.3x. 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 0.2 0.3 0.5 0.5 0.5 0.6 0.6 0.7 0.7 0.8 0.8 0.8 0.8 0.8 0.9 0.9 0.9 1.0 1.1 1.1 1.2 1.4 1.5 1.5 1.7 1.8 2.0 2.4 2.4 2.5 2.5 2.5 2.6 2.73.3 3.5 3.8 4.0 4.1 4.5 4.5 4.6 4.7 5.0

6.7 6.97.5

9.4 9.910.6

12.412.9

14.615.6

16.717.9

20.822.1

28.3

32.5

Average, 5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

TheStreet.com, Inc.

Uniserve Communications Corp.

CLICKER Inc.

The Parent Company

Northgate Technologies Limited

GameOn Co Ltd.

Tree.Com, Inc.

Perfect World Co., Ltd.

IAC/InterActiveCorp.

DXN Holdings Bhd

Jumbuck Entertainment Pty Ltd.

Openwave Systems Inc.

CDC Corp.

SNAP Interactive, Inc.

DADA SpA

Spark Networks, Inc.

Cyberplex Inc.

iseemedia Inc.

HanbitSoft, Inc.

United Online Inc.

GigaMedia Ltd.

SNM Global Holdings

Actoz Soft Co., Ltd.

Beyond Commerce, Inc.

ValueClick Inc.

Shutterfly, Inc.

Gamania Digital Entertainment Co., Ltd.

SK Communications Co., Ltd.

Modern Times Group Mtg AB

YedangOnline Corp.

PNI Digital Media Inc.

GungHo Online Entertainment, Inc.

Myriad Group AG

NEOWIZ Games Corporation

Ynk Korea Inc.

Open Text Corp.

XING AG

MOKO.mobi Limited

Eolith Co. Ltd.

NetDragon WebSoft, Inc.

CornerWorld Corporation

Sohu.com Inc.

Wizzard Software Corporation

Social Media Venures, Inc.

Total Sport Online AS

Accelerize New Media, Inc.

NeuLion Incorporated

DigitalPost Interactive, Inc.

Mixi, Inc.

Changyou.com Limited

Kingsoft Co. Ltd.

GeoSentric Oyj

Fluid Music Canada, Inc.

Lingo Media Corporation

Gree, Inc.

Bright Things plc

Associated Media Holdings Inc.

Chinese Gamer International

Frogster Interactive Pictures AG

UOMO Media, Inc

Tencent Holdings Ltd.

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 11.0x (vs. 11.0x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 5.1x revenue (vs. 5.1x last week) (Figure 11). Ten of the companies are Canadian (average 5.6x revenue).

Average TEV/LTM Revenue - By Exchange

0.3 0.30.00.60.8

1.82.02.02.02.42.52.63.64.04.65.5

6.8

9.19.910.3

11.011.8

14.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

AIM

SE

HK

OT

CB

B

XT

RA

HLS

E

GT

SM

TS

E

TS

X

OT

CN

O

TS

XV

OT

CP

K

AM

EX

SW

X

OS

E

AS

X

NasdaqG

S

KO

SE

OM

CM

KLS

E

BS

E

NasdaqG

M

RT

S

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

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.6 0.3 0.00.8 0.8

1.82.02.02.5

4.65.15.65.7

6.47.9

9.910.3

14.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Unite

d

Germ

any

Fin

land

Chin

a

Taiw

an

Japan

Canada

Unite

d

Norw

ay

Sw

itzerland

Austr

alia

South

Sw

eden

Italy

Ho

ng K

ong

Mala

ysia

India

Russia

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

(x)

# Companies

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

TEV/EBITDA (LTM) averages 11.9x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 11.0x LTM EBITDA (vs. 11.0x last week), led by Tencent Holdings (SEHK-700) 44.9x multiple (Figure 12). Eleven companies have EBITDA multiples under 7x. The median multiple is 9.4x (vs. 9.2x last week).

TEV/LTM EB ITDA (x)

0.2 1.0 1.8 1.9 2.9 3.2 3.9 4.4 4.5 5.16.3

7.8 8.1 8.5 9.2 9.4 9.4 9.4 9.5 10.0 10.9 11.6 11.8 12.413.6

14.8

20.321.5 21.9

23.4 24.426.1

29.9

44.9

Average, 11.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

OAO RBC Information Systems



GameOn Co Ltd.


TheStreet.com, Inc.


United Online Inc.

DXN Holdings Bhd


DADA SpA

Cyberplex Inc.

ValueClick Inc.



Sohu.com Inc.

YedangOnline Corp.

XING AG


Open Text Corp.

CDC Corp.


Shutterfly, Inc.


GungHo Online Entertainment, Inc.


Mixi, Inc.

Gree, Inc.

PNI Digital Media Inc.

Kingsoft Co. Ltd.

Openwave Systems Inc.

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 2.9x (vs. 3.1x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 9.2x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.2x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.21.82.93.23.94.5

6.37.8

9.410.711.612.413.614.6

19.221.9

26.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

SE

HK

TS

XV

GT

SM

TS

E

OS

E

KO

SE

OM

NasdaqG

S

XT

RA

TS

X

CM

KLS

E

AM

EX

NasdaqG

M

OT

CB

B

AS

X

RT

S

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

(x)

# Companies

Average TEV/LTM EBITDA - By Country

1.80.0

0.2

4.56.3

9.29.410.911.612.413.214.3

16.8

19.2

0.0

5.0

10.0

15.0

20.0

25.0

Taiw

an

Chin

a

Japan

Canada

South

Kore

a

Sw

eden

Hon

g K

ong

Germ

any

Unite

d

Sta

tes

Italy

Mala

ysia

Austr

alia

Russia

Sw

itzerland

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

(x)

# Companies

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

P/E (LTM) averages 11.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x) is 11.0x LTM EPS (vs. 11.0x last week), led Tencent Holdings Ltd (SEHK-700) 57.4x multiple (Figure 15). Eleven companies have P/E multiples under 10x. The median is just 12.1x.

P/E LTM (x)

2.1 2.4 2.6 2.7 3.15.8 6.0

7.7 8.610.2 11.3 11.4 11.9 12.1

14.1 14.4 14.6 16.2

19.7 20.3 21.8

27.2 27.3

33.6

37.5 38.9

45.3

51.4

57.4

A verage, 11.0

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


Kingsoft Co. Ltd.

Open Text Corp.

Worlds.com Inc.


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 22.6x. On a geographic basis, the United States has the most companies (39), trading at an average of 17.3x earnings (Figure 17). Ten of the companies are Canadian (average 21.1x EPS).

Average P/E - By Exchange

0.00.0

2.15.86.08.610.612.1

14.119.5

21.822.6

29.633.6

36.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

TS

E

SE

HK

GT

SM

OT

CB

B

XT

RA

KO

SE

OM

AM

EX

NasdaqG

S

TS

X

AS

X

KLS

E

NY

SE

NasdaqG

M

SW

X

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

(x)

# Companies

Average P/E - By Country

0.00.0

5.86.0

11.714.114.3

17.3

21.121.823.1

36.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Japan

Taiw

an

Germ

any

Canada

Unite

d

Sta

tes

Chin

a

Sw

eden

South

Kore

a

Austr

alia

Mala

ysia

Sw

itzerland

Italy

6 3 2 10 39 10 1 8 2 1 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

NetDragon W ebS oft, Inc. (S E HK :777) Tuesday, Augus t 25, 2009 9:00 PM (E DT ) Q2 2009 10-800-130-0399

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 133.1 19,150 -10.1% -24.6% -23.4% 76.5% 96.6% -46.8%

AQ Interactive, Inc. J P Y 3838 T S E 29.0 50,400 1.6% -17.8% -30.0% 62.1% -62.1% -64.3%

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 1.0 0.02 -11.1% -42.7% -29.6% 2.4% -74.0% -77.5%

B etawave C orporation US D BWAV OTC B B 2.3 0.08 33.3% -27.3% 0.0% -52.9% -74.2% -76.5%

B eyond Commerce, Inc. US D B YOC OTC B B 8.3 0.18 -33.3% -50.0% -82.0% -76.6% -93.9% -94.2%

B right T hings plc GB P AIM:BG T AIM 4.0 0.01 -2.3% -33.3% -19.9% -16.7% -32.4% -49.4%

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 278.7 2.63 3.5% -17.6% 68.6% 220.7% -0.8% -32.9%

Changyou.com Limited US D CYOU NasdaqG S 2,094.4 38.08 2.0% -8.6% 13.2% NM NM -21.3%

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 1,009.5 393.50 -4.4% -13.1% 11.8% 211.1% 391.1% -24.2%

C LICK E R Inc. US D CLK Z OTC B B 0.4 0.01 -9.1% -41.2% 25.0% -87.5% -99.2% -99.3%

CornerW orld Corporation US D CW R L OTC B B 5.3 0.06 -8.3% 10.0% -38.9% -63.3% -92.6% -93.0%

C yberplex Inc. CAD TS X:CX T S X 97.1 1.60 -3.0% -8.6% -5.3% 357.1% 158.1% -19.6%

DADA S pA E UR CM:DA CM 148.1 6.38 4.8% 4.6% 8.3% 18.5% -45.7% -46.8%

DXN Holdings B hd MYR DXN K LS E 34.8 0.53 9.3% 34.2% 41.3% 55.9% 35.9% -3.6%

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 4.6 0.06 20.0% -1.6% 185.7% 650.0% 9.1% -39.4%

DigitalT own, Inc. US D DGTW OTC BB 38.3 1.40 7.7% -30.0% -44.0% -41.7% -67.1% -68.9%

Dolphin Digital Media, Inc. US D DPDM OTC BB 20.9 0.39 0.0% 8.3% -35.0% -23.5% -51.3% -65.5%

E olith C o. L td. K R W A041060 K OS E 50.2 860.00 4.9% 9.6% 12.4% 43.3% 19.4% -25.9%

E xtens ions , Inc. US D E XT I OTC P K 3.6 0.08 -60.0% 0.0% -46.7% -60.0% -46.7% -92.1%

F luid Mus ic C anada, Inc. CAD TS X:FMN TS X 64.5 1.32 10.0% 48.3% 76.0% 203.4% -26.7% -26.7%

F rogs ter Interactive P ictures AG E UR FR G XTR A 60.6 16.75 19.6% 39.2% 104.5% 316.7% 140.0% -3.7%

G amania Digita l E ntertainment Co. , L td. TWD 6180 G T S M 233.0 50.30 -11.3% -18.1% -8.2% 127.6% 103.8% -26.9%

G ameOn Co L td. J P Y 3812 T S E 107.0 104,700 1.7% -2.1% 8.3% 9.6% -17.6% -31.6%

GeoS entric Oyj E UR GE O1V HLS E 64.3 0.05 0.0% 66.7% 0.0% 150.0% 0.0% -28.6%

G iant Interactive G roup, Inc. US D GA NYS E 1,754.9 7.75 0.9% -5.1% 1.6% 25.2% -15.4% -24.6%

G igaMedia L td. US D G IGM NasdaqG S 257.9 4.73 7.3% -5.0% -22.5% -21.6% -59.4% -61.1%

G ravity Co. , Ltd US D GR VY NasdaqGM 66.4 2.39 18.9% 55.2% 106.0% 246.4% 62.6% -9.1%

G ree, Inc. J P Y T S E :3632 T S E 2,021.1 8, 540 7.7% 24.3% 60.8% 84.4% NM -2.4%

GungHo Online E ntertainment, Inc. J P Y 3765 OS E 294.3 243,000 5.7% 13.0% 56.8% 99.5% 38.1% -13.2%

HanbitS oft, Inc. K R W A047080 K OS E 67.0 3,795 -8.0% -15.7% -31.6% 19.7% 7.2% -42.8%

IAC /InterActiveC orp. US D IAC I NasdaqG S 2,520.9 19.04 3.5% 6.3% 18.7% 25.9% 14.7% -2.7%

IAS E nergy, Inc. US D IAS A.E OTC B B 10.5 0.15 25.0% 0.0% -42.3% 275.0% -25.0% -46.4%

is eemedia Inc. CAD IE E T S XV 2.4 0.05 -16.7% -37.5% -44.4% -47.4% -68.8% -73.7%

J umbuck E ntertainment P ty Ltd. AUD AS X: JMB AS X 15.4 0.38 4.2% 7.1% -16.7% -16.7% -31.8% -38.5%

K AB Dis tribution Inc. CAD TS X:K AB T S X 83.4 1 0.0% 0.0% 4.9% 77.8% -11.1% -24.7%

K ingsoft C o. L td. HK D 3888 S E HK 1,214.6 9 2.7% 20.9% 51.8% 223.5% 193.9% -8.4%

L ingo Media Corporation CAD TS XV :LM TS XV 13.0 1.12 12.0% 1.8% 6.7% 40.0% -41.7% -41.7%

L iveW orld Inc. US D LVWD OTC P K 1.5 0.05 -9.1% 42.9% -37.5% 0.0% -80.0% -80.0%

LookS mart, L td. US D LOOK NasdaqGM 21.9 1.28 6.7% 7.6% 1.6% 4.9% -60.5% -61.8%

Magnitude Information S ys tems Inc. US D MAGY OTC B B 3.0 0.01 8.3% -13.3% -35.0% -65.8% -59.4% -78.3%

Mixi, Inc. J P Y 2121 T S E 1,000.3 614,000.00 1.7% -11.7% 31.5% 57.8% -31.0% -33.3%

Modern T imes G roup Mtg AB S E K MTG B OM 2,901.8 310.00 7.6% 23.0% 38.7% 178.0% -9.5% -13.3%

MOKO.mobi L imited AUD MKB AS X 5.2 0.07 -5.3% -5.3% 7.6% 57.8% 97.2% -29.0%

Myriad G roup AG CHF MYR N S WX 90.4 4.50 5.6% 3.4% -21.7% 22.0% -54.3% -54.5%

NE OW IZ G ames Corporation K R W A095660 K OS E 503.0 29,650.00 -6.2% -4.0% -20.9% 88.3% 175.8% -29.4%

NetDragon WebS oft, Inc. HK D 777 S E HK 452.8 6.64 12.0% 9.6% 23.0% 143.2% 18.6% -7.1%

Netease. com Inc. US D NTE S NasdaqG S 5,472.2 42.28 5.1% 0.2% 31.9% 126.1% 61.9% -9.9%

NeuLion Incorporated CAD TS X:NLN T S X 116.9 1.10 0.0% 34.1% 37.5% 175.0% NM -5.2%

NeXplore Corporation US D NXP C OTC P K 33.5 0.60 -11.8% 9.1% -14.3% -1.6% 11.1% -58.6%

Ngi G roup Inc. J P Y 2497 T S E 42.4 32,400.00 -1.2% -3.0% -6.4% 86.2% -64.9% -74.6%

Northgate T echnologies L imited INR 590057 B S E 28.3 39.40 14.9% 5.6% 1.4% 7.9% -86.4% -87.4%

Open T ext Corp. US D OTE X NasdaqG S 2,018.6 35.95 -5.8% -6.7% 8.6% 12.7% 2.5% -10.5%

Openwave S ys tems Inc. US D OPWV NasdaqG S 238.2 2.86 2.1% -3.7% 43.0% 261.6% 98.6% -8.6%

P erfect W orld Co. , Ltd. US D PW R D NasdaqG S 1,918.6 39.01 7.9% 11.6% 109.7% 216.6% 55.4% -7.0%

P NI Digital Media Inc. CAD TS XV :P N T S XV 53.2 1.67 4.4% 11.3% -1.2% -16.5% -50.7% -52.8%

Quepasa C orp. US D QP S A OTC B B 19.1 1.50 7.1% 51.5% 51.5% 16.3% -53.3% -56.6%

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 3,255.0 48.75 7.4% -14.5% -6.5% 49.7% 84.0% -25.0%

S hutterfly, Inc. US D S F LY NasdaqG S 385.7 15.15 2.7% -3.4% 4.9% 86.3% 62.9% -8.4%

S K C ommunications C o. , L td. K R W A066270 K OS E 314.4 9,310.00 -5.5% -1.9% -13.0% 37.9% -26.4% -28.4%

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 0.00 125.0% 12.5% 80.0% 350.0% -99.4% -99.7%

S ocial Media V enures , Inc. US D S MV I OTC P K 0.0 0.17 -10.5% -46.9% 1600.0% -86.4% -32.0% -96.6%

S ocialwis e, Inc. US D S CLW OTC B B 26.6 0.60 -11.8% -21.4% -14.3% 53.8% -74.8% -76.9%

S ohu.com Inc. US D S OHU NasdaqG S 2,473.3 64.52 7.7% 1.4% 11.1% 30.7% -14.3% -19.2%

S park Networks , Inc. US D LOV AME X 44.2 2 1.3% -9.8% -5.8% -15.8% -49.8% -51.9%

S pectrumDNA, Inc. US D S P XA OTC B B 11.0 0 -2.2% 60.7% -43.8% 136.8% -61.9% -61.9%

T encent Holdings Ltd. HK D 700 S E HK 28,087.7 120 4.3% 15.9% 57.2% 163.7% 79.1% -2.2%

T he P arent Company US D K IDS .Q OTC P K 0.5 0.02 31.3% -29.6% 97.0% -21.2% -99.0% -99.0%

T he9 L imited US D NC TY NasdaqG S 215.3 8.44 1.9% -6.0% -6.1% -29.5% -53.9% -57.4%

T heS treet.com, Inc. US D T S CM NasdaqGM 70.7 2.31 2.7% 12.1% 16.7% 12.1% -67.5% -68.5%

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 93.0 8.61 -3.7% -19.5% -30.8% 97.5% 13.3% -34.1%

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 620.4 7.40 1.2% -16.6% 13.8% 47.4% -29.7% -34.2%

UOMO Media, Inc US D UOMO OTC BB 12.9 0.15 20.0% 46.3% -46.4% 114.3% -61.5% -85.8%

V alueC lick Inc. US D VCLK NasdaqG S 937.8 10.76 7.5% -9.0% 3.1% 75.5% -16.5% -20.3%

VOIS , Inc. US D VOIS OTC B B 5.0 0.01 20.0% -14.3% -33.3% -20.0% -62.5% -73.9%

W ebzen Inc. US D WZE N NasdaqGM 33.4 2.82 3.7% -19.3% -39.6% 149.6% 30.6% -39.7%

W izzard S oftware C orporation US D WZE AME X 22.7 0.45 -4.3% -8.2% -21.0% -30.8% -64.6% -74.0%

Worlds .com Inc. US D WDDD OTC B B 5.7 0.11 10.0% -18.5% -26.7% -8.3% -63.3% -68.6%

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% 0.0% 233.3% -16.7% -83.3% -83.3%

XING AG E UR O1BC XT R A 207.5 27.49 0.0% -6.9% -17.8% -11.3% -21.2% -23.6%

Y edangOnline C orp. K R W A052770 K OS E 103.3 8,550 -3.6% 6.6% -22.3% 36.8% 0.7% -31.0%

Ynk K orea Inc. K R W A023770 K OS E 17.5 4,075 -14.6% -29.7% -45.7% 3.8% -58.8% -67.1%

High 125.0% 650.0% 1600.0% 650.0% 391.1% -2.2%

Low -60.0% -50.0% -82.0% -88.0% -99.4% -99.7%

Average 720.6 3.6% 7.0% 42.4% 73.3% -12.1% -47.4%Median 1.9% -2.0% 1.6% 37.9% -31.4% -44.6%

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 4.7x - - - - - -

Actoz S oft C o. , Ltd. G aming S outh K orea KOS E A052790 133.1 1.1x - 5. 1x - 19.7x - 2.2x

AQ Interactive, Inc. G aming J apan T S E 3838 29.0 - - - - - - 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 1.0 32.5x - - - - - -

B etawave Corpora tion Media United S ta tes OTCB B BWAV 2.3 - - - - - - 0.5x

B eyond Commerce, Inc. S ocial Networking United S ta tes OTCB B B YOC 8.3 1.2x - - - - - -

B right T hings plc S ocial Networking United K ingdom AIM AIM:B GT 4.0 14.6x - - - - - -

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 278.7 0.8x - 10.9x - - - -

C hangyou.com Limited G aming C hina NasdaqGS C YOU 2,094.4 7.5x 5.8x 12.4x 10.1x 14.4x 12.9x 14.2x

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 1,009.5 16.7x - 29.9x - 38.9x - 14.6x

C L IC K E R Inc. Direct Marketing United S ta tes OTCB B C LK Z 0.4 0.2x - - - - - -

C ornerWorld C orporation C ontent United S ta tes OTCB B CW R L 5.3 4.0x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T S X:CX 97.1 0.8x 0.7x 7. 8x 6.0x 8.6x 9.7x 3.8x

DADA S pA S ocial Networking Italy CM CM:DA 148.1 0.8x - 6. 3x - - - -

DXN Holdings B hd S ocial Networking Malays ia K LS E DXN 34.8 0.6x - 4. 5x - 5.8x - 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 4.6 6.7x - - - - - -

DigitalT own, Inc. S ocial Networking United S ta tes OTCB B DGTW 38.3 - - - - - - -

Dolphin Digital Media , Inc. S ocial Networking United S ta tes OTCB B DPDM 20.9 28.3x 1.4x - - - 1.6x -

E olith C o. L td. G aming S outh K orea KOS E A041060 50.2 3.5x - - - - - 4.7x

E xtens ions , Inc. C ontent United S ta tes OTCP K E XT I 3.6 - - - - - - -

F luid Mus ic C anada, Inc. Media United S ta tes T S X T S X:FMN 64.5 10.6x 7.5x - - - - 6.0x

F rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 60.6 17.9x - - - - - 8.2x

G amania Digital E ntertainment Co. , Ltd. G aming T a iwan G T S M 6180 233.0 1.5x - 8. 5x - 20.3x - 3.1x

G ameOn Co Ltd. G aming J apan T S E 3812 107.0 0.5x - 1. 9x - 11.3x - 1.3x

G eoS entric Oyj Mobile F inland HLS E GE O1V 64.3 9.9x - - - - - 10.7x

G iant Interactive G roup, Inc. G aming C hina NYS E GA 1,754.9 - - - - 2.1x 14.0x 0.3x

G igaMedia Ltd. G aming T a iwan NasdaqGS G IGM 257.9 1.0x 1.0x - 4.7x 10.2x 9.5x 2.2x

G ravity C o. , Ltd G aming S outh K orea NasdaqGM GR V Y 66.4 - - - - 0.0x - 0.0x

G ree, Inc. S ocial Networking J apan T S E T S E : 3632 2,021.1 12.9x - 21.5x - 45.3x - 21.0x

G ungHo Online E nterta inment, Inc. Media J apan OS E 3765 294.3 2.4x - 13.6x - - - 41.3x

HanbitS oft, Inc. G aming S outh K orea KOS E A047080 67.0 0.9x - - - - - 2.0x

IAC /InterActiveCorp. Media United S ta tes NasdaqGS IAC I 2,520.9 0.6x - 14.8x - 11.9x 36.3x 1.2x

IAS E nergy, Inc. V ideo C anada OTCB B IAS A.E 10.5 - - - - - - -

is eemedia Inc. C ontent C anada T S XV IE E 2.4 0.9x - - - - - 1.9x

J umbuck E ntertainment P ty L td. S ocial Networking Aus tra lia AS X AS X:J MB 15.4 0.7x - 1. 8x - 6.0x - 1.5x

K AB Dis tribution Inc. C ontent C anada T S X T S X:K AB 83.4 - - - - - - 0.9x

K ingsoft C o. Ltd. G aming C hina S E HK 3888 1,214.6 9.4x - 23.4x - 27.3x - 6.6x

Lingo Media C orpora tion Learning C anada T S XV T S XV : LM 13.0 12.4x - - - - - 13.1x

LiveW orld Inc. S ocial Networking United S ta tes OTCP K LVWD 1.5 0.0x - - - - - 0.7x

LookS mart, L td. Direct Marketing United S ta tes NasdaqGM LOOK 21.9 - - - - - - 0.8x

Magnitude Information S ys tems Inc. S ocial Networking United S ta tes OTCB B MAGY 3.0 - - - - - - -

Mixi, Inc. S ocial Networking J apan T S E 2121 1,000.3 6.9x - 20.3x - 51.4x - 7.0x

Modern T imes G roup Mtg AB Media S weden OM MTG B 2,901.8 1.8x 1.7x 11.6x 13.1x 14.1x 15.4x -

MOKO .mobi L imited S ocial Networking Aus tra lia AS X MK B 5.2 3.3x - - - - - 3.7x

Myriad G roup AG Mobile S witzerland S W X MYR N 90.4 2.5x - - - - - 4.0x

NE OW IZ G ames Corporation G aming S outh K orea KOS E A095660 503.0 2.5x - 9. 2x - 27.2x - 13.8x

NetDragon W ebS oft, Inc. G aming C hina S E HK 777 452.8 3.8x - 9. 5x - 16.2x - 2.4x

Netease.com Inc. G aming C hina NasdaqGS NT E S 5,472.2 - - - - 3.1x 17.0x 0.9x

NeuLion Incorporated V ideo C anada T S X T S X:NLN 116.9 5.0x - - - - - 8.5x

NeXplore Corporation C ontent United S ta tes OTCP K NXPC 33.5 - - - - - - -

Ngi G roup Inc. Media J apan T S E 2497 42.4 - - - - - - 0.9x

Northgate T echnologies L imited Direct Marketing India B S E 590057 28.3 0.3x - - - - - -

Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 2,018.6 2.6x 2.2x 10.0x 8.4x 33.6x 14.2x -

Openwave S ys tems Inc. Mobile United S ta tes NasdaqGS OPWV 238.2 0.7x 0.7x 24.4x 5.9x - 44.7x 3.5x

P erfect W orld C o. , Ltd. G aming C hina NasdaqGS PWR D 1,918.6 0.5x 2.7x 1. 0x 5.2x 2.7x 12.7x 1.3x

P NI Digital Media Inc. Digita l Imaging C anada T S XV T S XV :P N 53.2 2.4x 2.0x 21.9x 6.5x - 13.2x 18.3x

Quepasa C orp. S ocial Networking United S ta tes OTCB B QP S A 19.1 - - - - - - -

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 3,255.0 - - - - 2.6x 13.2x 1.1x

S hutterfly, Inc. Digita l Imaging United S ta tes NasdaqGS S FLY 385.7 1.5x 1.4x 11.8x 7.4x - - 2.3x

S K Communications Co. , Ltd. S earch S outh K orea KOS E A066270 314.4 1.7x - 26.1x - - - -

S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 4.3 0.8x - 2. 9x - 7.7x - 2.4x

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 26.6 - - - - - - -

S ohu.com Inc. G aming C hina NasdaqGS S OHU 2,473.3 4.1x 3.5x 9. 4x 7.8x 14.6x 17.6x 4.8x

S park Networks , Inc. S ocial Networking United S ta tes AME X LOV 44.2 0.8x - 3. 9x - 12.1x - 45.2x

S pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 11.0 - - - - - - -

T encent Holdings Ltd. P orta l C hina S E HK 700 28,087.7 22.1x - 44.9x - 57.4x - 25.6x

T he P a rent C ompany Media United S ta tes OTCP K K IDS .Q 0.5 0.2x 0.2x - 13.0x - - -

T he9 L imited G aming C hina NasdaqGS NCTY 215.3 - - - - 2.4x 12.1x 0.1x

T heS treet.com, Inc. Media United S ta tes NasdaqGM TS CM 70.7 0.1x 0.1x 3. 2x - - - 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 93.0 0.5x - - 7.1x - 48.5x 1.2x

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 620.4 0.9x 0.9x 4. 4x 3.7x - 10.6x -

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 937.8 1.4x 1.5x 8. 1x 5.7x - 16.8x 6.1x

VO IS , Inc. S ocial Networking United S ta tes OTCB B VOIS 5.0 - - - - - - 17.1x

W ebzen Inc. G aming S outh K orea NasdaqGM WZE N 33.4 - - - - 0.0x - 0.0x

W izzard S oftware Corporation P odcas ting United S ta tes AME X WZE 22.7 4.5x - - - - - -

W orlds .com Inc. C ontent United S ta tes OTCB B WDDD 5.7 - - - - 37.5x - -

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 207.5 2.7x - 9. 4x - 21.8x - 6.8x

Y edangOnline Corp. G aming S outh K orea KOS E A052770 103.3 2.0x - 9. 4x - 11.4x - 3.6x

Y nk K orea Inc. G aming S outh K orea KOS E A023770 17.5 2.5x - - - - - 0.8x

High 28,087.7 32.5x 7.5x 44.9x 13.1x 57.4x 48.5x 45.2x

Low 0.0 0.0x 0.1x 0. 2x 3.7x 0.0x 1.6x 0.0x

Average 720.6 5.0x 2.1x 11.9x 7.5x 17.4x 17.8x 6.6xMedian 47.2 2.0x 1.5x 9. 4x 6.8x 12.1x 13.6x 2.7x

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 46,938.8 C hina 4,693.9 China 4,080.4 China 2,038.8 C hina 49.4%

Canada 10 United S ta tes 5,255.6 S weden 2,901.8 United S tates 3,887.4 S weden 299.6 Aus tralia 37.2%

China 10 J apan 3,494.2 J apan 582.4 S weden 1,950.0 United S tates 289.4 T aiwan 36.9%

S outh K orea 8 S weden 2,901.8 T aiwan 500.1 Canada 1,015.7 Canada 200.3 G ermany 28.8%

J apan 6 C anada 2,409.0 Hong K ong 278.7 S outh K orea 672.3 J apan 181.5 J apan 25.0%

Ta iwan 3 Ta iwan 1,500.4 C anada 240.9 J apan 616.5 S outh K orea 94.2 S weden 15.4%

Aus tralia 2 S outh K orea 1,270.9 S outh K orea 158.9 T a iwan 379.1 T a iwan 56.2 Malays ia 14.4%

Germany 2 Hong K ong 278.7 Ita ly 148.1 Hong K ong 361.6 Ita ly 31.1 Italy 13.1%

S witzerland 1 Germany 268.1 R us s ia 145.7 Ita ly 236.5 Hong K ong 25.1 R us s ia 13.1%

Hong K ong 1 Ita ly 148.1 United S ta tes 134.8 R us s ia 150.9 R us s ia 19.7 S outh K orea 7.9%

F inland 1 R us s ia 145.7 Germany 134.0 India 81.9 Malays ia 11.0 Hong K ong 6.9%

Ita ly 1 S witzerland 90.4 S witzerland 90.4 Malays ia 76.5 Germany 10.3 S witzerland 1.9%

United K ingdom 1 F inland 64.3 F inland 64.3 Germany 60.8 Aus tralia 3.1 C anada -12.1%

India 1 Malays ia 34.8 Malays ia 34.8 S witzerland 40.0 S witzerland 0.8 United S ta tes -21.9%

S weden 1 India 28.3 India 28.3 Aus tralia 16.3 Norway -1.1 India -50.0%

R us s ia 1 Aus tralia 20.5 Aus tralia 10.3 F inland 6.1 United K ingdom -1.9 Norway -50.6%

Malays ia 1 United K ingdom 4.0 United K ingdom 4.0 Norway 2.2 F inland -15.7 United K ingdom NA

Norway 1 Norway 0.1 Norway 0.1 United K ingdom 0.3 India -40.9 F inland NA

Grand Total 90 Grand Total 64,853.7 Grand Total 720.6 Grand Total 13,634.4 Grand Total 3,201.5 Grand Total 5.0%

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 Rev ($m) USD LTM Total E B ITDA ($m) E B ITDA %

OTCB B 19 S E HK 29,755.1 S E HK 9,918.4 OM 1,950.0 NasdaqGS 1,760.5 NY S E 62.5%

NasdaqGS 14 NasdaqGS 22,686.9 OM 2,901.8 S E HK 535.7 S E HK 772.0 S E HK 43.0%

OTCP K 11 TS E 3,199.8 NY S E 1,754.9 NasdaqGS 494.4 OM 299.6 AS X 37.2%

KOS E 6 OM 2,901.8 NasdaqGS 1,620.5 CM 236.5 T S E 161.9 G TS M 36.9%

TS E 5 NY S E 1,754.9 T S E 640.0 NY S E 198.5 NY S E 124.1 Nas daqG S 30.3%

NasdaqGM 5 GT S M 1,242.6 GT S M 621.3 R T S 150.9 KOS E 79.3 XT R A 28.8%

TS X 4 KOS E 1,171.1 OS E 294.3 OS E 109.0 GT S M 56.2 T S E 26.4%

TS XV 4 TS X 362.0 KOS E 195.2 T S E 101.5 CM 31.1 OS E 18.0%

S E HK 3 OS E 294.3 CM 148.1 KOS E 100.6 R T S 19.7 OM 15.4%

AME X 2 NasdaqGM 285.5 R TS 145.7 GT S M 97.7 OS E 19.6 K LS E 14.4%

AS X 2 XTR A 268.1 XTR A 134.0 B S E 81.9 NasdaqGM 11.7 CM 13.1%

XTR A 2 OTCB B 197.6 T S X 90.5 NasdaqGM 81.8 K LS E 11.0 R TS 13.1%

GT S M 2 CM 148.1 S W X 90.4 K LS E 76.5 XTR A 10.3 Nas daqGM 6.4%

SWX 1 R TS 145.7 HLS E 64.3 T S X 46.7 AME X 6.2 T S XV 5.6%

HLS E 1 S WX 90.4 NasdaqGM 57.1 S W X 40.0 AS X 3.1 K OS E 4.4%

CM 1 TS XV 69.6 K LS E 34.8 XTR A 30.4 S W X 0.8 S WX 1.9%

B S E 1 AME X 66.9 AME X 33.4 AME X 27.9 OTCNO -1.1 AME X -31.8%

NY S E 1 HLS E 64.3 B S E 28.3 OTCP K 16.5 AIM -1.9 T S X -34.7%

OS E 1 OTCP K 61.3 T S XV 17.4 T S XV 12.0 T S X -4.2 OTCP K -41.5%

AIM 1 K LS E 34.8 OTCB B 10.4 AS X 8.1 T S XV -4.4 OTCB B -45.1%

OM 1 B S E 28.3 AS X 10.3 HLS E 6.1 HLS E -15.7 B S E -50.0%

R T S 1 AS X 20.5 OTCP K 5.6 OTCB B 2.3 OTCP K -34.1 OTCNO -50.6%

K LS E 1 AIM 4.0 AIM 4.0 OTCNO 2.2 B S E -40.9 HLS E #DIV /0!

OT CNO 1 OTCNO 0.1 OTCNO 0.1 AIM 0.3 OTCB B -63.5 AIM #DIV /0!

Grand Total 90 Grand Total 64,853.7 Grand Total 720.6 Grand Total 13,634.4 Grand Total 3,201.5 Grand Total 5.0%

Figure 22. Comparison by Exchange Source. Capital IQ

Financ ing - Las t Three Months (US$ m)Fin. Amount (Million) Type of financing

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

J un-09 Sugar 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 S AS F rance 8.5 8.5

E do Interactive US A 8.0 8.0

AdMeld Inc. US A 8.0 8.0

beeTV US A 8.0 8.0

blueK iwi Software 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

Yapta US A 2.0 2.0

OneTXT US A 2.0 2.0

I Love R ewards Canada 1.8 1.8

C liqset US A 1.5 1.5

Picaboo US A 1.0 1.0

TodaCell Is rael 1.0 1.0

Glubble Netherlands 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

J un-09 Total 53.3 15.3 28.5 67.8 34.0 5.3 204.1

Fin. Amount (Million) Type of financing

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

J ul-09 Pandora Media US A 35.0 35.0

Kontera Ltd. Is rael 15.5 15.5

Ning US A 15.0 15.0

QuickPlay 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

SBNation US A 8.0 8.0

MediaMath US A 6.6 6.6

Metaversum Germany 6.3 6.3

iMemories US A 6.2 6.2

Invodo US A 6.0 6.0

J ambool US A 5.0 5.0

Quikr India Pvt. L td. India 4.1 4.1

OPEN Sports 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

Akademos US A 2.5 2.5

ProtonMedia US A 2.5 2.5

iLoop Mobile US A 2.0 2.0

Comunitae S pain 1.7 1.7

Aloqa Germany 1.5 1.5

Lat49 Canada 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

Cognitive Match L imited UK 1.0 1.0

Cellufun US A 1.0 1.0

BookFresh US A 0.5 0.5

People Capital US A 0.5 0.5

Masher Media US A 0.3 0.3

J ul-09 Total 63.8 11.1 36.8 51.5 27.0 190.2

Aug-09 Turbine US A 50.0 50.0

Mint US A 14.1 14.1

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

E do Interactive US A 8.5 8.5

InnoCentive US A 7.3 7.3

Boxee US A 6.0 6.0

Polyvore US A 5.6 5.6

KODA US A 3.0 3.0

OurS tage US A 3.0 3.0

Z2Live US A 3.0 3.0

S coreloop Germany 2.8 2.8

Roblox US A 2.2 2.2

ChessCube S outh Africa 1.3 1.3

iS yndica US A 0.4 0.4

Aug-09 Total 25.3 3.0 47.2 22.6 50.0 148.1

Grand Total 142.4 15.3 42.6 151.7 108.1 82.3 542.3

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 .

Boxee United S ta tes www.boxee.tv B oxee T V , Ltd. develops media center s oftware. T he company’s s oftware enables its us ers to control media programs s tored in the personal

computer or the Internet doma in, and brings them to the televis ion. It enables its us ers to view, rate, and recommend content to their friends

through socia l networking features , as well as its s ocia l component a llows sharing with friends . T he company was founded in 2007 and is

based in New Y ork, New Y ork.

ChessCube S outh Africa www.chesscube.com Ches sCube, is an online game allowing users to play ches s for free and mainta in their online rating, s ocia lize in chat rooms and invite friends

to play ches s . T he company is bas ed in S outh Africa .

E do Interac tive United S ta tes www.edointeractive.net edo interactive, Inc. develops technologies for digita l marketing. T he company focuses on Marketing P latform, a behaviora l targeting and

marketing platform that a llows bus ines ses to create micro-targeted marketing campa igns ; monitor the campaign from their computer; target

key consumer groups us ing demographic, geographic, and ps ychographic consumer information to filter and build targeted campa igns ; and

offers demons trable s a les revenue results . It offers P rewarding, a tool that gives cash incentives directly to consumers in advance of des ired

purchas ing behavior through their pre-pa id debit Mas terC ard; C ash, a s ys tem that provides cash rewards to loyal cus tomers ; and MarketIQ ,

which provides rea l-time feedback from cus tomers through s urveys and focus group tools . The company was founded in 2007 and is bas ed

in Nashville, T ennes see.

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.

GigPark Canada www.gigpark.com G igP ark (www.gigpa rk. com) is a s ocia l recommendations tool to find the trus ted s ervice people that friends use

iL ike United S ta tes www.ilike.com iL ike.com, Inc. operates as a s ocia l mus ic dis covery s ervice and mus ic application on socia l networking s ites in the United K ingdom and

Latin America . It offers iL ike S idebar for fans , which s cans mus ic library, recommends mus ic, and connects friends and the iL ike community,

a s well as offers a lerts on concerts and favorite artis ts . T he company a ls o provides iL ike Univers a l Artis t Dashboard for a rtis ts to manage

their online presence. In addition, it offers a mus ic-promotion platform for promoters to create multimedia ads to target users by location and

mus ic tas te; and enables W eb s ite or application developers to add mus ic features . F urther, the company provides t-shirts for men and

women online. iL ike.com, Inc. was formerly known as E volution Artis ts , Inc. T he company was founded in 2002 and is based in S eattle,

W as hington. As of Augus t 19, 2009, iL ike.com, Inc. operates as a s ubs idiary of MyS pace, Inc.

InnoCentive United S ta tes www.innocentive.com F ounded in 2001, InnoC entive built the firs t global web community for open innovation, enabling s cientis ts , engineers , profes s iona ls and

entrepreneurs to collaborate to deliver breakthrough solutions for innovative organizations . InnoCentive S eekers , who collectively spend

billions of dolla rs on R &D, s ubmit C hallenges to the InnoCentive Marketplace where more than 160,000+ engineers , s cientis ts , inventors ,

bus ines s people, and res earch organizations in more than 175 countries a re invited to solve them. S olvers who deliver the mos t innovative

s olutions receive financia l awards ranging up to US $1,000,000. InnoC entive’s S eekers include commercia l, government and non-profit

organizations such as P rocter & G amble, Avery Dennison, P endulum, E li L illy and C ompany, J ans sen, S olvay, G lobalG iving and T he

R ockefeller F oundation

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.

MediaMath United S ta tes www.mediamath.com MediaMath, LLC provides cros s -exchange advertis ing management s ervices and technology. T he company offers S ingularity, a media

buying platform for advertis ing agencies , which provides technology, s trategy, s ervices , and ins ights to trade acros s dis play advertis ing

exchanges on behalf of advertis ers . MediaMath, LLC was founded in 2007 and is based in New Y ork, New Y ork .

Mint United S ta tes www.mint.com Mint S oftware, Inc. provides a W eb-based solution for online financia l management. It offers money management, debt management,

expense tracking, inves tment management, budget management, mutual fund, IR A management, and financia l planning s ervices . T he

company a ls o provides sugges tions based on user’s s pending patterns and automatic categorization of purchases . Mint S oftware, Inc. was

founded in 2006 and is based in Mountain V iew, Ca lifornia .

OurS tage United S ta tes www.ourstage.com OurS tage, Inc. offers a democra tic competition that a llows fans to decide the bes t artis t in enterta inment in the United S tates . Its

OurS tage.com allows the artis t to upload their mus ic or video, and decide which competition to enter, s o that the Internet audience judges

the work s ide by s ide with the work of others . At the end of each month, the top performers enter into the company’s S MS text voting period,

where the artis t in each channel with the mos t S MS votes wins the prize. OurS tage, Inc. was founded in 2006 and is based in C helms ford,

Mas s achusetts .

PolyVore United S ta tes www.polyvore.com P olyvore, a fa shion 2.0 company founded by the man respons ible for Y ahoo P ipes , lets users mix and match complete outfits by dragging

and dropping clothing images found on the web. It’s part s ocia l network, and part des igners ’ club, the end result being a place where users

can put together their dream outfit or learn about the lates t fashions from other users .

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.

Roblox United S ta tes www.roblox.com R oblox C orpora tion develops online gaming software. R oblox C orpora tion was founded in 2004 and is based in P ortola V alley, C alifornia .

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 .

Z2L ive United S ta tes www.z2live.com Z2L ive, a mobile multiplayer gaming platform, was formed to leverage the new capabilities of mobile devices , the s eamles s flow between

mobile and W eb communities and the advent of consumer-focused marketplaces . T he company was founded in 2009 by Damon Danieli, a

14-year Microsoft veteran, David B luhm, a long time veteran of mobile content and enterta inment and Madrona V enture G roup, a S ea ttle-

based venture capita l firm. Z2L ive’s mis s ion is to enable multiplayer gaming acros s a ll mobile devices and a ll wireles s networks .

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

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