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Software Equity Group, L.L.C.

p: (858) 509-2800f: (858) 509-2818

May 2010

Software Equity Group Flash Report

Select M&A Transactionsand

Financial and Stock Market PerformancePublic Software Companies By Product Category

[email protected]

Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved

San Diego, CA 9213012220 El Camino Real, #320

Public SaaS CompaniesPublic Internet Companies By Product Category

[email protected]


ABOUT OUR FIRM

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has represented and guided private companies throughout the United States and Canada, as well as Europe, Asia Pacific, Africa and Israel. We have advised public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also represents several of the world's leading private equity firms. We were recently ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domainexpertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.

THE SEG SOFTWARE COMPANY MENTORING PROGRAM

As part of our informal mentoring program, we are currently guiding and advising some fifty software companies around the globe that are not yet exit candidates, but aspire to be in the next few years. We meet with them periodically, invite them to call whenever they’d like our opinion on an operational issue that might have exit implications later on, and we keep them apprised of M&A activity and financings in their product category. And the best news – we don’t charge for this mentoring advice. It’s complimentary. It’s our way of building value, and relationships.

We’re looking for a few more such relationships. We begin with an introductory phone call with companies interested in being mentored, followed by a more in-depth telephone conversation. We’ll then invite qualified candidates to meet personally with four or five members of our team at our San Diego office. During this three to four hour sit-down, we’ll discuss the current market, specifically as it relates to valuations, transactions and trends in your product category. We’ll assess the strengths and weakness of your financial performance, how that compares to other software companies your size, and how that relates to buyer expectations. We’ll discuss your market strategy, sales strategy, sales team track record, software and maintenance pricing strategies, equity structure, and a wide array of other factors that can materially impact your salability and valuation down the road. We’re a terrific sounding board. We’ll give you an informed, honest and frank opinion – that’s what we’re known for. And we’ll offer informed and insightful observations, ideas and options based on 17 years of working with countless software companies worldwide.

If you run a profitable software company with revenue in excess of $10 million, and you’re interested in learning more about SEG’s complimentary, no obligation mentoring program, please contact Kris Beible at [email protected] or 858-509-2800.

ADDITIONAL RESEARCH

For our complimentary current and archived Quarterly Reports from 1Q03, please visit: http://www.softwareequity.com/research_quarterly_reports.aspx

For our complimentary current and archived Monthly Flash Reports from July 2008, please visit: http://www.softwareequity.com/research_flash_reports.aspx

For our Annual Reports from 2003 through 2008, please visit: http://www.softwareequity.com/research_annual_reports.aspx

http://www.softwareequity.com/research_quarterly_reports.aspx

http://www.softwareequity.com/research_flash_reports.aspx

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CAD Computer-aided DesignCAM Computer-aided ManufacturingCRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationEV Enterprise ValueFCF Free Cash FlowFORWARD Current EV / Next Four Quarters' Consensus Financial EstimatesHR Human ResourcesNASDAQ National Association of Securities Dealers Automated Quotation SystemOS Operating SystemPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date

List of Commonly Used Acronyms


April 2010

Select Software Industry M&A Transactions


Select April 2010 Software Industry M&A Transactions

Date Announced Target EV/ Revenue

04/30/2010 iMarketing Ltd, Inc. TrackingSoft, LLC - - -04/30/2010 Google Inc. (NasdaqGS:GOOG) Bump Technologies Inc. - - -04/29/2010 Symantec Corporation (NasdaqGS:SYMC) PGP Corporation 75.0 300.0 4.0x04/29/2010 Symantec Corporation (NasdaqGS:SYMC) GuardianEdge Technologies, Inc. 18.0 70.0 -04/29/2010 Digital River Inc. (NasdaqGS:DRIV) FatFooGoo AG - 12.4 -04/29/2010 Solarsoft Business Systems Limited Informance International, Inc. - - -04/29/2010 Electronics For Imaging (Luxembourg) S.à r.l. Radius Solutions Incorporated - - -04/28/2010 EthicsPoint, Inc. ember ec³ Inc. - - -04/27/2010 Sapiens International Corp. NV (NasdaqCM:SPNS) Harcase Software Ltd. - 8.0 -04/27/2010 GainClients Inc. (OTCPK:GCLT) Henderson Systems, LLC - - -04/26/2010 Open Text Corp. (NasdaqGS:OTEX) Burntsand Inc. (TSX:BRT) 22.2 6.9 0.3x04/26/2010 Playdom, Inc. Merscom, LLC - - -04/21/2010 Amdocs Ltd. (NYSE:DOX) Streamezzo S.A. - - -04/21/2010 SAP AG (DB:SAP) TechniDATA AG - - -04/21/2010 Invensys Process Systems (S) Pte Ltd Skelta Software Pvt. Ltd. - - -04/20/2010 Descartes Systems Group Inc. (TSX:DSG) Imanet - 6.0 -04/20/2010 Clear2Pay nv/sa Jware Technologies SA - - -04/20/2010 CDC Software Corporation (NasdaqGM:CDCS) eBizNET Solutions Pvt. Ltd. - - -04/20/2010 News Corp. (NasdaqGS:NWSA) Irata Labs - - -04/19/2010 CAE Inc. (TSX:CAE) Datamine International Limited - 25.0 -04/19/2010 Shenzhen Tencent Computer System Company Limited Shenzhen Domain Computer Network Company Limited - 46.3 -04/19/2010 Adtech-GESI, LLC Telindus Surveillance Solutions Ltd. - - -04/16/2010 Vocus Inc. (NasdaqGM:VOCS) Data Presse SAS 4.6 10.7 2.3x04/16/2010 Mentum S.A. Ascom Network Testing Inc. - 2.2 -04/16/2010 RFID Invest AG InSync Software, Inc. - - -04/15/2010 Oracle Corp. (NasdaqGS:ORCL) Phase Forward Inc. (NasdaqGS:PFWD) 221.6 603.0 2.7x04/14/2010 Cloud Centric Systems, Inc. (OTCPK:CLDR) V-Clouds Limited - - -04/13/2010 SpringSource, Inc. Rabbit Technologies Ltd. - - -04/13/2010 BoardSuite Corp. HireCaliber.com - - -04/13/2010 BlueCielo ECM Solutions BV Kronodoc Oy - - -04/12/2010 ICMI SA Cegid SA (ENXTPA:CGD) 337.9 351.7 1.0x04/12/2010 Cover-All Systems Inc. Moore Stephens Business Solutions, LLC 6.0 2.5 0.4x04/12/2010 Google Inc. (NasdaqGS:GOOG) Plink Search Ltd. - - -04/12/2010 Emtec Inc. (OTCBB:ETEC) SARK Infotech Private Limited - - -04/09/2010 Research In Motion Limited (TSX:RIM) QNX Software Systems International Corporation - 200.0 -04/09/2010 Twitter, Inc. atebits LLC - - -04/09/2010 Nokia Corp. (HLSE:NOK1V) MetaCarta, Inc. - - -04/08/2010 Juniper Networks, Inc. (NYSE:JNPR) Ankeena Networks, Inc. - 100.0 -04/08/2010 Schlumberger Information Solutions Igeoss sarl - - -04/07/2010 ThruPoint, Inc. Ubiquity Software Corporation Corporation Limited - - -04/07/2010 Solera Holdings Inc. (NYSE:SLH) Market Scan Holding B.V. - - -04/07/2010 NetApp, Inc. (NasdaqGS:NTAP) Bycast, Inc. - - -04/06/2010 EVS Broadcast Equipment S.A. (ENXTBR:EVS) OpenCube Technologies S.A.S 1.9 - -04/06/2010 Servigistics, Inc. Kaidara, Inc. - - -04/06/2010 Quark, Inc. GLUON Software, Inc. - - -04/05/2010 Accelrys Inc. (NasdaqGM:ACCL) Symyx Technologies Inc. (NasdaqGS:SMMX) 150.8 98.2 0.7x04/01/2010 Enghouse Systems Ltd. (TSX:ESL) Mettoni Limited 26.8 22.8 0.9x04/01/2010 VeriSign Inc. (NasdaqGS:VRSN) TrustBearer Labs, LLC - - -


Target TTM Revenue ($mm)Acquirer

Implied Enterprise Value ($mm)


Category Performance

SEG Software Index

SEG Software Index: All Categories

Market Cap EV TTM RevenueTTM Gross

MarginTTM EBITDA

Margin

TTM Revenue Growth EV/ Revenue

EV/ EBITDA

Forward EV/ Revenue

Forward EV/

EBITDA

YoY Stock Market Return

SEG Software Index $557.98 $520.34 $229.32 68.6% 16.4% -0.1% 2.1x 13.6x 2.5x 12.3x 51.8% Billing & Service Management $1,058.70 $899.51 $384.63 50.2% 19.8% -1.3% 1.6x 8.3x 1.7x 7.4x 63.2% Business Intelligence $579.55 $441.17 $197.94 77.0% 15.7% 0.7% 2.2x 14.4x 2.1x 10.7x 63.4% Content/Document Management $74.25 $83.53 $82.60 71.5% 22.5% -9.4% 1.9x 7.8x 4.2x 12.1x 42.5% CRM, Marketing & Sales Software $147.22 $105.56 $93.20 49.6% 2.3% -13.9% 1.0x 16.0x 1.1x 11.8x 44.3% Database & File Management $1,592.14 $1,275.42 $526.77 84.0% 22.9% -1.5% 1.8x 9.0x 2.1x 7.0x 27.7% Dev Tools, OS & Application Testing Software $732.39 $614.17 $283.20 71.6% 18.6% -0.5% 1.7x 10.5x 3.0x 12.1x 51.5% eCommerce Enablement Software $674.18 $535.52 $182.20 66.3% 13.6% 5.9% 3.4x 18.7x 3.8x 12.9x 32.6% Education & eLearning $142.81 $118.45 $105.50 70.6% 10.1% 20.5% 1.7x 16.9x 1.7x 12.5x 48.0% Electronic Design Automation $955.28 $1,082.16 $802.73 81.1% 4.1% -0.8% 1.7x 28.7x 1.8x 8.0x 33.8% Engineering, PLM & CAD/CAM Software $1,208.27 $1,454.77 $516.89 81.2% 13.2% -6.2% 2.1x 17.6x 2.0x 12.3x 64.8% Enterprise Application Integration $1,890.67 $1,654.72 $643.54 71.1% 21.5% 2.0% 2.6x 10.1x 2.5x 9.4x 27.7% Enterprise Resource Planning $596.55 $592.50 $320.12 57.5% 17.9% -6.6% 1.8x 11.4x 1.9x 10.0x 50.2% Entertainment $1,667.67 $998.35 $314.05 61.2% 11.6% -11.6% 0.9x 7.9x 0.8x 7.3x 32.7% Financial Services Software $808.88 $1,010.99 $249.40 59.2% 21.2% -0.3% 2.7x 13.7x 2.7x 11.2x 39.3% Healthcare $494.44 $476.26 $215.41 61.4% 24.3% 5.8% 3.0x 18.0x 3.3x 13.1x 51.7% Messaging, Conferencing & Communications $208.33 $180.70 $98.80 65.2% 11.1% 6.9% 1.9x 16.8x 1.8x 13.6x 82.7% Multimedia, Graphics, Digital Media $555.40 $448.50 $422.08 68.7% 10.7% -10.3% 2.9x 19.2x 2.6x 12.0x 63.2% Networking & Connectivity $1,611.21 $1,076.02 $495.46 78.6% 22.8% -0.5% 2.5x 17.8x 2.5x 15.3x 76.0% Security $851.44 $631.42 $187.11 77.6% 15.6% 6.9% 3.5x 14.3x 2.8x 8.5x 35.8% Storage & Systems Management Software $9,527.49 $8,079.81 $2,043.18 79.2% 17.3% 0.3% 2.6x 11.8x 2.6x 11.7x 42.0% Supply Chain Management & Logistics $387.40 $258.53 $214.55 57.7% 12.0% -9.3% 1.8x 13.0x 2.2x 13.0x 62.2% Wireless $316.78 $270.92 $187.62 46.4% 12.4% -1.2% 1.5x 16.1x 1.4x 10.9x 33.7%

TTM Revenue Growth -0.1%TTM EBITDA Growth 13.1%TTM Earnings Growth 21.8%Gross Profit Margin 68.6%EBITDA Margin 16.4%Net Income Margin 6.7%SG&A Expenses as a % of Total Revenue 38.4%R&D Expenses as a % of Total Revenue 14.9%

Current Ratio 2.0Quick Ratio 1.8Cash as Percent of Market Cap 19.1%Avg Days Outstanding: Accounts Receivable 72Avg Days Outstanding: Accounts Payable 39Working Capital to TTM Operating Expense Ratio 0.4

Levered FCF Margin 9.9%Cash from Operations Growth (YoY) 10.3%Cash from Investing Growth (YoY) -20.9%Cash from Financing Growth (YoY) 38.6%Levered FCF Growth (YoY) 20.2%

Copyright © 2010 by Software Equity Group, L.L.C., All Rights Reserved May 2010 Monthly Flash Report

Category Name

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

SEG SW Index Stock Market Return: Jan-Apr 2010

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DOW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Billing and Service Management

Company Name Ticker Market Cap EV TTM RevenueTTM Gross

MarginTTM EBITDA

Margin

TTM Revenue Growth EV/ Revenue EV/ EBITDA

Forward EV/ Revenue

Forward EV/ EBITDA


Amdocs Limited DOX $6,569.45 $5,207.95 $2,866.46 36.1% 20.6% -7.8% 1.8x 8.8x 1.7x 7.4x 52.6%AsiaInfo Holdings, Inc. ASIA $1,343.57 $1,066.11 $261.83 55.9% 19.3% 36.7% 4.1x 21.1x 3.6x 20.1x 69.6%CSG Systems International, Inc. CSGS $773.84 $732.91 $507.43 44.4% 20.4% 5.3% 1.4x 7.1x 1.4x 6.2x 56.7%MIND C.T.I. Ltd. MNDO $41.13 $22.95 $17.57 63.5% 16.8% -9.8% 1.3x 7.8x Capability Needeapability Need 117.5%

Median: $1,058.70 $899.51 $384.63 50.2% 19.8% -1.3% 1.6x 8.3x 1.7x 7.4x 63.2%



Levered FCF Margin 13.4%Cash from Operations Growth (YoY) 52.4%Cash from Investing Growth (YoY) 48.0%Cash from Financing Growth (YoY) -161.4%Levered FCF Growth (YoY) 40.1%





May 2010 Monthly Flash Report

Billing & Service Management Software Stock Market Return: Jan-Apr 2010

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Billing & Service Management SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Business Intelligence


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Actuate Corporation ACTU $256.57 $211.66 $119.15 84.2% 16.0% -8.9% 1.8x 11.1x 1.5x 6.6x 53.0%Datawatch Corporation DWCH $16.47 $10.59 $18.65 71.5% 9.7% -15.9% 0.6x 5.9x n/a n/a 69.5%Informatica Corporation INFA $2,291.81 $2,138.35 $526.77 84.0% 22.9% 14.3% 4.1x 17.8x 4.1x 15.7x 57.4%MicroStrategy Incorporated MSTR $902.53 $670.67 $390.94 81.2% 22.0% 10.2% 1.7x 7.8x 1.6x 5.9x 96.9%Pegasystems Inc. PEGA $1,172.52 $970.45 $276.73 65.0% 15.4% 22.7% 3.5x 22.8x 3.7x 20.9x 81.3%PROS Holdings PRO $236.71 $174.26 $68.78 72.9% 12.6% -9.0% 2.5x 20.1x 2.1x 10.7x 40.9%

Median: $579.55 $441.17 $197.94 77.0% 15.7% 0.7% 2.2x 14.4x 2.1x 10.7x 63.4%

TTM Revenue Growth 0.7%TTM EBITDA Growth 14.3%TTM Earnings Growth -2.4%Gross Profit Margin 77.0%EBITDA Margin 15.7%Net Income Margin 9.5%SG&A Expenses as a % of Total Revenue 47.7%R&D Expenses as a % of Total Revenue 15.4%


Levered FCF Margin 11.9%Cash from Operations Growth (YoY) 5.3%Cash from Investing Growth (YoY) 27.7%Cash from Financing Growth (YoY) 99.7%Levered FCF Growth (YoY) 22.0%





Income Statement Analysis (Median) Business Intelligence Software Stock Market Return: Jan-Apr 2010

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Business Intelligence SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Content & Document Management


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Adobe Systems Incorporated ADBE $17,687.81 $16,508.98 $3,018.16 89.8% 32.5% -13.2% 5.5x 16.8x 5.4x 13.1x 22.9%Datawatch Corporation DWCH $16.47 $10.59 $18.65 71.5% 9.7% -15.9% 0.6x 5.9x n/a n/a 69.5%EasyLink Services International ESIC $74.25 $83.53 $82.60 70.0% 22.5% -9.4% 1.0x 4.5x n/a n/a 42.5%Ninetowns Internet Tech Grp Ltd. NINE $57.98 -$35.71 $14.52 68.6% -19.2% -8.8% n/a n/a n/a n/a 58.8%Open Text Corporation OTEX $2,392.71 $2,372.94 $875.35 74.1% 27.7% 11.9% 2.7x 9.8x 2.9x 11.1x 28.4%

Median: $74.25 $83.53 $82.60 71.5% 22.5% -9.4% 1.9x 7.8x 4.2x 12.1x 42.5%

TTM Revenue Growth -9.4%TTM EBITDA Growth 9.0%TTM Earnings Growth -8.7%Gross Profit Margin 71.5%EBITDA Margin 22.5%Net Income Margin 0.8%SG&A Expenses as a % of Total Revenue 48.8%R&D Expenses as a % of Total Revenue 14.4%


Levered FCF Margin 20.6%Cash from Operations Growth (YoY) -17.3%Cash from Investing Growth (YoY) -35.6%Cash from Financing Growth (YoY) -2.0%Levered FCF Growth (YoY) -10.1%






Content & Document Management Software Stock Market Return: Jan-Apr 2010

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Content & Document Management SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: CRM, Marketing, and Sales


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Astea International Inc. ATEA $12.16 $8.77 $20.10 38.2% -1.8% -15.7% 0.4x n/a n/a n/a 44.3%Blackbaud, Inc. BLKB $1,032.27 $1,010.99 $310.84 61.0% 20.3% 1.0% 3.3x 16.0x 3.1x 11.8x 51.4%Callidus Software, Inc. CALD $98.77 $65.22 $81.06 39.0% -12.4% -24.4% 0.8x n/a 0.7x n/a -1.9%CDC Software Corporation CDCS $274.32 $237.42 $204.07 54.4% 23.8% -12.0% 1.2x 4.9x 1.1x n/a n/aRainmaker Systems Inc. RMKR $30.99 $18.71 $47.79 44.8% -5.1% -27.9% 0.4x n/a 0.4x n/a 38.0%Unica Corporation UNCA $195.67 $145.90 $105.35 73.9% 6.3% -5.3% 1.4x 21.9x 1.6x n/a 93.7%

Median: $147.22 $105.56 $93.20 49.6% 2.3% -13.9% 1.0x 16.0x 1.1x 11.8x 44.3%

TTM Revenue Growth -13.9%TTM EBITDA Growth 60.8%TTM Earnings Growth 74.8%Gross Profit Margin 49.6%EBITDA Margin 2.3%Net Income Margin -2.0%SG&A Expenses as a % of Total Revenue 31.0%R&D Expenses as a % of Total Revenue 15.8%


Levered FCF Margin 1.2%Cash from Operations Growth (YoY) 42.9%Cash from Investing Growth (YoY) -134.5%Cash from Financing Growth (YoY) -64.9%Levered FCF Growth (YoY) -14.4%





Income Statement Analysis (Median) CRM, Marketing, & Sales Software Stock Market Return: Jan-Apr 2010

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CRM, Marketing, & Sales SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Database and File Management


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


BMC Software, Inc. BMC $7,187.96 $6,354.66 $1,899.20 78.7% 33.5% 2.1% 3.3x 10.0x 3.1x 7.0x 13.5%Double-Take Software DBTK $227.93 $131.71 $83.95 89.2% 16.5% -8.2% 1.6x 9.5x 1.3x 6.1x 32.8%Guidance Software, Inc. GUID $142.88 $104.29 $75.62 73.5% -9.1% -14.5% 1.4x n/a 1.4x n/a 59.8%Informatica Corporation INFA $2,291.81 $2,138.35 $526.77 84.0% 22.9% 14.3% 4.1x 17.8x 4.1x 15.7x 57.4%Oracle Corporation ORCL $129,831.34 $128,444.34 $24,176.00 80.6% 46.7% 2.3% 5.3x 11.4x 5.1x 10.5x 33.8%Pervasive Software Inc. PVSW $87.65 $45.27 $46.59 87.9% 14.8% -1.5% 1.0x 6.6x 0.9x 4.8x 1.4%Quest Software, Inc. QSFT $1,592.14 $1,275.42 $695.24 90.5% 21.6% -5.5% 1.8x 8.5x 1.7x 6.0x 20.8%Sybase, Inc. SY $3,602.41 $3,058.09 $1,197.01 71.1% 31.0% 5.1% 2.6x 8.3x 2.5x 7.3x 27.7%Versant Corporation VSNT $51.70 $24.60 $16.99 89.1% 24.9% -31.0% 1.4x 5.8x n/a n/a 7.9%

Median: $1,592.14 $1,275.42 $526.77 84.0% 22.9% -1.5% 1.8x 9.0x 2.1x 7.0x 27.7%



Levered FCF Margin 14.0%Cash from Operations Growth (YoY) -10.3%Cash from Investing Growth (YoY) 42.9%Cash from Financing Growth (YoY) 38.6%Levered FCF Growth (YoY) -16.3%






Database & File Management Software Stock Market Return: Jan-Apr 2010

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Database & File Management SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Development Tools, OS, and App Testing


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


BSQUARE Corporation BSQR $26.08 $13.17 $64.38 20.8% -3.9% -2.1% 0.2x n/a n/a n/a 8.9%Google Inc. GOOG $167,369.81 $140,855.81 $24,916.56 63.1% 41.6% 12.7% 5.7x 13.6x 5.6x 12.1x 32.8%Magic Software Enterprises Ltd. MGIC $85.30 $60.71 $61.29 49.8% 16.4% 1.0% 1.0x 6.0x n/a n/a 105.4%Microsoft Corporation MSFT $267,603.82 $236,418.82 $59,544.00 80.2% 42.4% -2.7% 4.0x 9.4x 3.7x 9.5x 50.7%Phoenix Technologies Ltd. PTEC $104.74 $77.89 $65.05 86.4% -16.9% -10.2% 1.2x n/a 1.1x n/a 4.9%Progress Software Corporation PRGS $1,360.05 $1,150.45 $500.82 85.4% 21.9% -2.7% 2.3x 10.5x 2.3x n/a 52.2%Red Hat, Inc. RHT $5,634.80 $4,874.02 $748.24 84.8% 20.7% 14.7% 6.5x 31.5x 6.1x 22.5x 73.0%SourceForge, Inc. LNUX $90.21 $51.86 $65.58 31.2% -9.1% 12.1% 0.8x n/a 0.8x n/a 56.0%

Median: $732.39 $614.17 $283.20 71.6% 18.6% -0.5% 1.7x 10.5x 3.0x 12.1x 51.5%








Income Statement Analysis (Median) Development Tools, OS, and App Testing Software Stock Market Return: Jan-Apr 2010

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Development Tools, OS, and App Testing SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: eCommerce Enablement Software


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Art Technology Group, Inc. ARTG $674.18 $535.52 $182.20 66.3% 13.6% 7.2% 2.9x 21.6x 2.8x 12.9x 36.9%CyberSource Corporation CYBS $1,818.99 $1,675.77 $281.23 52.4% 20.2% 19.1% 6.0x 29.5x 6.4x 29.4x 75.8%Imergent, Inc. IIG $72.59 $51.04 $76.01 69.8% 4.3% -26.3% 0.7x 15.8x n/a n/a -7.7%Optimal Group Inc. OPMR $12.26 $4.69 $69.54 19.0% -55.8% -43.3% n/a n/a n/a n/a -4.8%VeriSign, Inc. VRSN $4,978.52 $4,052.60 $1,041.46 76.7% 41.1% 5.9% 3.9x 9.5x 3.8x 8.5x 32.6%

Median: $674.18 $535.52 $182.20 66.3% 13.6% 5.9% 3.4x 18.7x 3.8x 12.9x 32.6%

TTM Revenue Growth 5.9%TTM EBITDA Growth 38.7%TTM Earnings Growth 108.5%Gross Profit Margin 66.3%EBITDA Margin 13.6%Net Income Margin 8.7%SG&A Expenses as a % of Total Revenue 40.6%R&D Expenses as a % of Total Revenue 7.9%







Income Statement Analysis (Median) eCommerce Enablement Software Stock Market Return: Jan-Apr 2010

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eCommerce Enablement SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Education and eLearning


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Archipelago Learning, Inc. ARCL $364.02 $368.50 $42.77 92.8% 35.9% 32.3% 8.6x 24.0x 8.7x 23.0x n/aBlackboard Inc. BBBB $1,448.10 $1,436.93 $377.00 70.6% 22.7% 20.8% 3.8x 16.8x 3.6x 15.8x 25.1%GSE Systems Inc. GVP $106.03 $80.76 $40.06 25.8% 3.0% 38.1% 2.0x 68.2x 1.8x n/a 8.9%PLATO Learning, Inc. TUTR $137.98 $110.33 $64.73 57.4% 5.0% -5.2% 1.7x 34.3x 1.7x 8.1x 89.0%Renaissance Learning, Inc. RLRN $416.20 $371.79 $124.87 78.8% 27.0% 8.9% 3.0x 11.0x 2.9x n/a 48.0%Rosetta Stone, Inc. RST $530.35 $435.16 $252.27 86.8% 10.1% 20.5% 1.7x 17.1x 1.6x 9.7x -13.7%Saba Software, Inc. SABA $142.81 $118.45 $105.50 65.2% 7.9% 0.1% 1.1x 14.2x 1.1x 12.5x 120.8%Scientific Learning Corporation SCIL $93.09 $76.82 $57.73 79.3% 14.7% 22.1% 1.3x 9.0x 1.4x n/a 130.0%

Median: $142.81 $118.45 $105.50 70.6% 10.1% 20.5% 1.7x 16.9x 1.7x 12.5x 48.0%









Education & eLearning Software Stock Market Return: Jan-Apr 2010

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Education & Computer Based Training SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Electronic Design Automation


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Cadence Design Systems, Inc. CDNS $2,015.25 $1,833.87 $868.27 81.1% 4.1% -10.9% 2.1x 51.8x 2.0x 25.6x 33.6%Magma Design Automation, Inc. LAVA $188.65 $213.25 $123.54 78.1% 3.9% 5.8% 1.7x 43.9x n/a n/a 104.5%Mentor Graphics Corporation MENT $955.28 $1,082.16 $802.73 86.6% 9.9% 1.7% 1.3x 13.6x 1.3x 8.0x 33.8%PDF Solutions, Inc. PDFS $133.98 $99.27 $53.50 57.4% -4.9% -16.2% 1.9x n/a 2.0x n/a 174.5%Synopsys, Inc. SNPS $3,390.66 $2,298.32 $1,350.46 82.1% 22.3% -0.8% 1.7x 7.6x 1.6x 5.1x 4.0%

Median: $955.28 $1,082.16 $802.73 81.1% 4.1% -0.8% 1.7x 28.7x 1.8x 8.0x 33.8%








Income Statement Analysis (Median) Electronic Design Automation Software Stock Market Return: Jan-Apr 2010

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Electronic Design Automation SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Engineering, PLM, & CAD/CAM


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


ANSYS, Inc. ANSS $4,062.02 $3,944.46 $516.89 88.3% 48.6% 8.1% 7.6x 15.7x 7.6x 13.0x 62.8%Autodesk, Inc. ADSK $7,792.75 $6,792.15 $1,713.70 88.8% 14.4% -26.0% 4.0x 27.6x 3.6x 17.7x 70.5%Cadence Design Systems, Inc. CDNS $2,015.25 $1,833.87 $868.27 81.1% 4.1% -10.9% 2.1x 51.8x 2.0x 25.6x 33.6%Cimatron Ltd. CIMT $17.40 $11.33 $32.96 81.2% 1.8% -19.6% 0.3x 19.6x n/a n/a 110.9%Dassault Systèmes DSY $7,718.34 $6,783.77 $1,695.01 84.5% 25.8% -6.2% 4.0x 15.5x n/a n/a 57.6%DigitalGlobe, Inc. DGI $1,208.27 $1,454.77 $281.90 89.0% 56.8% 2.4% 5.2x 9.1x 5.3x 8.8x n/aGSE Systems Inc. GVP $106.03 $80.76 $40.06 25.8% 3.0% 38.1% 2.0x 68.2x 1.8x n/a 8.9%Magma Design Automation, Inc. LAVA $188.65 $213.25 $123.54 78.1% 3.9% 5.8% 1.7x 43.9x n/a n/a 104.5%Mentor Graphics Corporation MENT $955.28 $1,082.16 $802.73 86.6% 9.9% 1.7% 1.3x 13.6x 1.3x 8.0x 33.8%Parametric Technology Corporation PMTC $2,178.10 $2,003.58 $971.49 68.8% 13.2% -6.3% 2.1x 15.7x 2.0x 11.6x 66.7%PDF Solutions, Inc. PDFS $133.98 $99.27 $53.50 57.4% -4.9% -16.2% 1.9x n/a 2.0x n/a 174.5%Stratasys, Inc. SSYS $488.98 $421.39 $103.21 49.6% 19.2% -11.7% 4.1x 21.3x 4.1x 22.8x 154.7%Synopsys, Inc. SNPS $3,390.66 $2,298.32 $1,350.46 82.1% 22.3% -0.8% 1.7x 7.6x 1.6x 5.1x 4.0%

Median: $1,208.27 $1,454.77 $516.89 81.2% 13.2% -6.2% 2.1x 17.6x 2.0x 12.3x 64.8%









Engineering, PLM, & CAD/CAM Software Stock Market Return: Jan-Apr 2010

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Engineering, PLM, & CAD/CAM SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Enterprise Application Integration


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


BluePhoenix Solutions, Ltd. BPHX $48.39 $42.41 $77.78 42.3% 8.0% -15.2% 0.5x 6.8x 0.5x n/a 8.9%Citrix Systems, Inc. CTXS $8,748.57 $8,075.50 $1,659.30 91.4% 22.3% 5.3% 4.9x 21.8x 4.8x 16.5x 64.8%Jacada Ltd. JCDA $25.27 $6.44 $16.66 34.4% -47.1% -31.6% 0.4x n/a n/a n/a -36.1%Sybase, Inc. SY $3,602.41 $3,058.09 $1,197.01 71.1% 31.0% 5.1% 2.6x 8.3x 2.5x 7.3x 27.7%TIBCO Software Inc. TIBX $1,890.67 $1,654.72 $643.54 74.6% 21.5% 2.0% 2.6x 12.0x 2.6x 9.4x 80.1%

Median: $1,890.67 $1,654.72 $643.54 71.1% 21.5% 2.0% 2.6x 10.1x 2.5x 9.4x 27.7%



Levered FCF Margin 15.1%Cash from Operations Growth (YoY) 16.0%Cash from Investing Growth (YoY) -154.9%Cash from Financing Growth (YoY) 98.9%Levered FCF Growth (YoY) n/a





Income Statement Analysis (Median) Enterprise Application Integration Software Stock Market Return: Jan-Apr 2010

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Enterprise Application Integration SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Enterprise Resource Planning


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


American Software, Inc. AMSW.A $161.70 $122.13 $75.32 57.5% 12.6% -6.6% 1.6x 12.9x 1.4x 9.8x 15.1%CDC Corporation CHIN.A $281.33 $267.56 $320.12 43.3% 11.4% -21.7% 0.8x 7.3x 0.8x 6.4x 125.4%CDC Software Corporation CDCS $274.32 $237.42 $204.07 54.4% 23.8% -12.0% 1.2x 4.9x 1.1x 4.5x n/aDeltek PROJ $529.31 $562.00 $267.63 64.1% 20.6% -5.1% 2.1x 10.2x 2.1x 8.1x 91.0%Epicor Software Corporation EPIC $599.51 $752.80 $410.21 56.3% 14.2% -15.3% 1.8x 12.9x 1.9x 12.6x 66.3%Intuit Inc. INTU $11,360.73 $11,412.73 $3,258.54 80.6% 30.0% 7.7% 3.5x 11.7x 3.5x 10.0x 56.5%Lawson Software, Inc. LWSN $1,254.88 $1,253.40 $725.59 55.7% 16.4% -9.8% 1.7x 10.5x 1.6x 12.4x 44.0%Oracle Corporation ORCL $129,831.34 $128,444.34 $24,176.00 80.6% 46.7% 2.3% 5.3x 11.4x 5.1x 10.5x 33.8%QAD Inc. QADI $173.14 $145.19 $215.23 57.9% 7.4% -18.1% 0.7x 9.1x 0.6x 5.2x 107.5%SAP SAP $56,959.80 $53,803.37 $14,581.84 67.4% 30.8% -6.2% 3.7x 12.0x 3.6x 12.0x 25.0%Tyler Technologies, Inc. TYL $596.55 $592.50 $290.54 44.2% 17.9% 5.5% 2.0x 11.4x 2.0x 10.6x 3.3%

Median: $596.55 $592.50 $320.12 57.5% 17.9% -6.6% 1.8x 11.4x 1.9x 10.0x 50.2%








Income Statement Analysis (Median) Enterprise Resource Planning Software Stock Market Return: Jan-Apr 2010

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Enterprise Resource Planning SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Entertainment


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Electronic Arts Inc. ERTS $6,327.10 $4,543.10 $3,535.00 45.8% -13.7% -21.1% 1.3x n/a 1.0x n/a -4.8%Giant Interactive GA $1,714.75 $998.35 $190.95 84.3% 67.7% -18.2% 5.2x 7.7x 4.7x 7.2x -8.6%Glu Mobile, Inc. GLUU $47.39 $53.25 $79.34 64.2% -4.8% -11.6% 0.7x n/a 0.5x 10.7x 169.6%Konami Corporation KNM $2,606.12 $2,645.97 $2,865.04 29.1% 11.6% -13.6% 0.9x 8.0x 0.8x 5.4x 32.7%Majesco Entertainment Company COOL $33.28 $20.57 $90.84 25.3% -2.7% 16.4% 0.2x n/a 0.2x n/a -41.8%Perfect World PWRD $1,667.67 $1,436.43 $314.05 86.0% 53.6% 49.2% 4.6x 8.5x 4.2x 7.3x 84.3%THQ Inc. THQI $513.54 $395.98 $871.73 61.2% 42.0% 3.0% 0.5x 1.1x 0.4x n/a 122.2%

Median: $1,667.67 $998.35 $314.05 61.2% 11.6% -11.6% 0.9x 7.9x 0.8x 7.3x 32.7%









Entertainment Software Stock Market Return: Jan-Apr 2010

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Entertainment SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Financial Services


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


ACI Worldwide, Inc. ACIW $638.58 $583.03 $405.29 68.4% 17.4% -2.4% 1.4x 8.3x 1.5x 8.8x 8.8%Advent Software, Inc. ADVS $1,164.88 $1,061.91 $259.87 70.6% 15.8% -5.9% 4.1x 25.8x 3.7x 15.1x 35.9%Blackbaud, Inc. BLKB $1,032.27 $1,010.99 $310.84 61.0% 20.3% 1.0% 3.3x 16.0x 3.1x 11.8x 51.4%Bottomline Technologies EPAY $468.25 $409.97 $151.38 57.0% 14.2% 8.8% 2.7x 19.1x 2.8x 23.7x 121.7%DST Systems, Inc. DST $1,986.66 $3,102.36 $2,223.70 18.5% 18.6% -1.5% 1.4x 7.5x 1.9x 7.1x 17.4%Ebix, Inc. EBIX $568.62 $600.64 $97.69 78.2% 45.0% 30.7% 6.1x 13.7x 5.9x 13.0x 75.6%EPIQ Systems, Inc. EPIQ $441.70 $449.01 $233.61 57.4% 22.1% -5.8% 1.9x 8.7x 2.0x 6.8x -22.0%Fair Isaac Corporation FICO $979.19 $1,206.67 $603.16 70.0% 26.3% -11.9% 2.0x 7.6x 2.0x 7.9x 25.2%Fiserv FISV $7,795.54 $10,893.54 $4,062.00 41.5% 30.4% -9.3% 2.7x 8.8x 2.7x 8.4x 37.0%Fundtech Ltd. FNDT $213.53 $171.37 $117.76 54.1% 10.6% -2.7% 1.5x 13.7x 1.4x 11.2x 56.1%Jack Henry & Associates, Inc. JKHY $2,156.44 $2,192.23 $800.62 41.1% 30.7% 7.8% 2.7x 8.9x 3.0x 10.1x 41.6%Longtop Financial Technologies LFT $1,932.64 $1,570.12 $151.87 64.5% 45.4% 57.3% 10.3x 22.8x 12.2x 24.1x 45.4%MSCI MXB $3,638.29 $3,569.18 $458.71 74.4% 44.7% 6.2% 7.8x 17.4x 7.8x 16.0x 65.1%NetSol Technologies Inc. NTWK $28.83 $47.87 $29.02 53.2% 7.8% -15.0% 1.6x 21.2x 1.8x n/a 65.7%Risk Metrics Group, Inc RISK $1,550.72 $1,627.48 $303.36 69.9% 33.5% 2.4% 5.4x 16.0x 5.3x 15.1x 29.0%S1 Corporation SONE $319.32 $273.41 $238.93 55.8% 18.7% 4.6% 1.1x 6.1x 1.1x 5.5x -0.5%Sapiens International SPNS $47.31 $37.11 $45.70 41.9% n/a 5.0% 0.8x n/a n/a n/a 154.7%TradeStation Group, Inc. TRAD $343.54 n/a $130.83 77.4% n/a -16.0% n/a n/a n/a n/a 3.3%

Median: $808.88 $1,010.99 $249.40 59.2% 21.2% -0.3% 2.7x 13.7x 2.7x 11.2x 39.3%


Current Ratio 1.6Quick Ratio 1.3Cash as Percent of Market Cap 13.5%Avg Days Outstanding: Accounts Receivable 69Avg Days Outstanding: Accounts Payable 34Working Capital to TTM Operating Expense Ratio #VALUE!

Levered FCF Margin #VALUE!Cash from Operations Growth (YoY) #VALUE!Cash from Investing Growth (YoY) #VALUE!Cash from Financing Growth (YoY) #VALUE!Levered FCF Growth (YoY) #VALUE!






Financial Services Software Stock Market Return: Jan-Apr 2010

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Financial Services SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Healthcare


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Allscripts Healthcare Solutions Inc. MDRX $2,943.75 $2,843.01 $680.51 55.6% 13.0% 42.0% 4.2x 32.1x 4.1x 22.3x 62.2%Cerner Corporation CERN $6,968.77 $6,477.78 $1,710.88 83.4% 25.2% 1.6% 3.8x 15.0x 3.8x 13.1x 57.6%Computer Programs and Sys, Inc. CPSI $494.44 $476.26 $129.15 40.2% 18.0% 7.4% 3.7x 20.5x 3.5x 17.2x 28.8%Eclipsys Corporation ECLP $1,184.87 $1,091.75 $517.38 46.1% 10.5% -0.8% 2.1x 20.1x 1.8x 11.9x 56.7%eResearchTechnology, Inc. ERES $359.57 $279.01 $91.91 53.6% 28.4% -25.4% 3.0x 10.7x 3.3x n/a 45.4%MedAssets MDAS $1,302.75 $1,510.85 $355.70 77.6% 27.6% 18.6% 4.2x 15.4x 4.4x 13.5x 32.4%Merge Healthcare MRGE $204.12 $185.26 $66.84 76.0% 26.1% 17.8% 2.8x 10.6x 2.4x 7.9x 33.3%Omnicell, Inc. OMCL $433.85 $253.24 $215.41 50.6% 6.5% -11.0% 1.2x 18.0x 1.1x 12.1x 51.7%Quality Systems, Inc. QSII $1,835.36 $1,748.19 $279.13 61.4% 28.3% 20.9% 6.3x 22.1x 6.6x 19.4x 19.4%Simulations Plus, Inc. SLP $38.88 $30.24 $9.94 75.4% 24.3% 5.8% 3.0x 12.5x 2.9x 9.1x 113.0%Vital Images, Inc. VTAL $227.78 $97.79 $58.23 75.6% 0.7% -14.5% 1.7x 241.5x 1.4x n/a 55.8%

Median: $494.44 $476.26 $215.41 61.4% 24.3% 5.8% 3.0x 18.0x 3.3x 13.1x 51.7%








Income Statement Analysis (Median) Healthcare Software Stock Market Return: Jan-Apr 2010

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Healthcare SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Messaging, Conferencing, and Comms


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


8x8 Inc. EGHT $87.75 $70.77 $63.29 64.8% 0.2% -3.0% 1.1x 462.6x 1.0x 18.2x 85.6%Evolving Systems, Inc. EVOL $72.75 $69.28 $38.20 65.5% 21.1% 1.0% 1.8x 8.6x 1.7x 7.3x 140.4%Interactive Intelligence, Inc. ININ $343.66 $272.26 $136.97 69.9% 14.8% 12.8% 2.0x 13.5x 1.9x 11.4x 79.7%SeaChange International, Inc. SEAC $258.83 $219.07 $201.67 51.2% 7.5% -0.1% 1.1x 14.5x 1.1x 13.6x 32.9%Synchronoss Technologies, Inc. SNCR $638.07 $554.74 $134.32 50.2% 21.6% 20.5% 4.1x 19.1x 4.3x 15.3x 53.8%Zix Corporation ZIXI $157.82 $142.34 $31.81 73.7% 2.3% 13.2% 4.5x 190.8x 4.4x n/a 104.1%

Median: $208.33 $180.70 $98.80 65.2% 11.1% 6.9% 1.9x 16.8x 1.8x 13.6x 82.7%



Levered FCF Margin 7.2%Cash from Operations Growth (YoY) -8.5%Cash from Investing Growth (YoY) -51.7%Cash from Financing Growth (YoY) 95.0%Levered FCF Growth (YoY) 199.8%






Messaging, Conferencing, & Comms Software Stock Market Return: Jan-Apr 2010

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Messaging, Conferencing, & Comms SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Multimedia, Graphics, and Digital Media


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Adobe Systems Incorporated ADBE $17,687.81 $16,508.98 $3,018.16 89.8% 32.5% -13.2% 5.5x 16.8x 5.4x 13.1x 22.9%Avid Technology, Inc. AVID $549.97 $475.73 $633.30 52.1% -0.2% -20.7% 0.8x n/a 0.7x n/a 31.9%Bitstream Inc. BITS $78.43 $59.60 $21.49 58.9% 6.1% -10.5% 2.8x 45.4x n/a n/a 80.3%DigitalGlobe, Inc. DGI $1,208.27 $1,454.77 $281.90 89.0% 56.8% 2.4% 5.2x 9.1x 5.3x n/a n/aDivX, Inc. DIVX $275.28 $139.71 $75.18 87.4% -0.5% -14.1% 1.9x n/a 1.3x 21.4x 63.2%Monotype Imaging Holdings TYPE $363.76 $421.27 $94.86 89.1% 38.4% -11.4% 4.4x 11.6x 4.3x 10.9x 180.9%NICE Systems Ltd. NICE $2,032.24 $1,702.32 $583.12 59.3% 15.2% -6.6% 2.9x 19.2x 2.6x 10.0x 22.4%Nuance Communications, Inc. NUAN $5,185.11 $5,623.44 $996.50 66.9% 22.3% 11.9% 5.6x 25.3x 5.2x 16.8x 36.8%RealNetworks, Inc. RNWK $560.83 $183.18 $562.26 60.5% -4.7% -7.0% 0.3x n/a 0.3x 7.4x 68.7%Sonic Solutions SNIC $382.76 $326.44 $110.22 70.4% 4.2% -10.1% 3.0x 70.0x 2.4x n/a 470.5%

Median: $555.40 $448.50 $422.08 68.7% 10.7% -10.3% 2.9x 19.2x 2.6x 12.0x 63.2%

TTM Revenue Growth -10.3%TTM EBITDA Growth -3.1%TTM Earnings Growth -1.7%Gross Profit Margin 68.7%EBITDA Margin 10.7%Net Income Margin 3.9%SG&A Expenses as a % of Total Revenue 38.2%R&D Expenses as a % of Total Revenue 19.5%


Levered FCF Margin -0.3%Cash from Operations Growth (YoY) -15.3%Cash from Investing Growth (YoY) -42.4%Cash from Financing Growth (YoY) 138.5%Levered FCF Growth (YoY) -9.9%





Income Statement Analysis (Median) Multimedia, Graphics, & Digital Media Software Stock Market Return: Jan-Apr 2010

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Multimedia, Graphics, & Digital Media SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Networking and Connectivity


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Allot Communications Ltd. ALLT $130.80 $93.07 $41.75 71.7% -5.6% 12.5% 2.2x n/a 1.8x n/a 176.2%CA, Inc. CA $11,867.02 $10,797.02 $4,285.00 87.3% 34.5% -0.8% 2.5x 7.3x 2.3x 6.8x 32.3%Cisco Systems, Inc. CSCO $154,191.38 $129,767.38 $35,533.00 64.5% 26.5% -10.2% 3.7x 13.8x 3.4x 11.8x 39.4%Citrix Systems, Inc. CTXS $8,748.57 $8,075.50 $1,659.30 91.4% 22.3% 5.3% 4.9x 21.8x 4.8x 16.5x 64.8%F5 Networks, Inc. FFIV $5,438.95 $5,053.70 $730.59 79.4% 25.9% 11.3% 6.9x 26.8x 7.5x 27.0x 150.9%NetScout Systems Inc. NTCT $597.85 $544.01 $260.34 78.5% 23.2% -2.7% 2.1x 9.0x 1.9x 7.5x 61.5%Novell, Inc. NOVL $1,963.81 $972.52 $849.68 78.4% 15.9% -9.7% 1.1x 7.2x 1.0x n/a 49.9%OPNET Technologies, Inc. OPNT $334.56 $233.78 $120.82 75.6% 8.2% -0.1% 1.9x 23.6x 1.7x 14.0x 87.1%Radware Ltd. RDWR $377.89 $311.52 $121.51 78.8% 10.6% 30.8% 2.6x 24.3x 2.7x 29.5x 207.3%SolarWinds, Inc. SWI $1,258.61 $1,179.52 $126.70 95.7% 39.6% 30.9% 9.3x 23.5x 10.0x 19.5x n/aTTI Team Telecom International Ltd. TTIL $33.87 $4.48 $42.54 53.9% 11.0% -15.5% 0.1x 1.0x n/a n/a 189.7%

Median: $1,611.21 $1,076.02 $495.46 78.6% 22.8% -0.5% 2.5x 17.8x 2.5x 15.3x 76.0%








Income Statement Analysis (Median) Networking & Connectivity Software Stock Market Return: Jan-Apr 2010

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Networking and Connectivity SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Security


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


ActivCard Corp. ACTI $134.69 $63.65 $60.68 68.9% -6.4% 1.3% 1.0x n/a n/a n/a 35.8%ArcSight, Inc. ARST $774.88 $643.06 $165.45 80.6% 11.5% 31.0% 3.9x 33.7x 4.6x 45.3x 51.1%Blue Coat Systems, Inc. BCSI $1,353.64 $1,244.18 $477.16 73.3% 12.6% 13.8% 2.6x 20.8x 2.5x n/a 145.3%Check Point Software Tech Ltd. CHKP $7,448.11 $6,405.91 $974.48 87.9% 52.3% 20.0% 6.6x 12.6x 6.3x 10.8x 53.7%Cogent, Inc. COGT $928.01 $619.78 $129.58 62.3% 35.1% 3.1% 4.8x 13.6x 4.0x 11.3x -8.6%Commtouch Software Ltd. CTCH $94.40 $77.12 $15.19 85.1% 21.0% 7.8% 5.1x 24.2x n/a n/a 130.4%McAfee, Inc. MFE $5,514.62 $4,613.09 $1,982.37 78.5% 21.0% 18.1% 2.3x 11.1x 2.2x 6.8x -7.4%SonicWALL, Inc. SNWL $555.12 $342.04 $208.77 72.8% 14.6% -0.8% 1.6x 11.2x 1.5x 8.4x 86.6%Sourcefire, Inc. FIRE $613.67 $555.65 $110.70 79.2% 12.8% 37.3% 5.0x 39.2x 4.7x 36.0x 106.5%Symantec Corporation SYMC $13,520.63 $12,753.63 $5,921.85 85.5% 30.0% -4.8% 2.2x 7.2x 2.1x 5.7x -2.8%VASCO Data Security International VDSI $243.82 $167.70 $102.44 69.5% 10.9% -19.5% 1.6x 15.0x 1.7x n/a -6.4%VeriSign, Inc. VRSN $4,978.52 $4,052.60 $1,041.46 76.7% 41.1% 5.9% 3.9x 9.5x 3.8x 8.5x 32.6%Websense, Inc. WBSN $980.14 $984.89 $315.92 83.5% 16.6% 4.5% 3.1x 18.7x 2.8x 7.9x 27.7%Zix Corporation ZIXI $157.82 $142.34 $31.81 73.7% 2.3% 13.2% 4.5x 190.8x 4.4x n/a 104.1%

Median: $851.44 $631.42 $187.11 77.6% 15.6% 6.9% 3.5x 14.3x 2.8x 8.5x 35.8%









Security Software Stock Market Return: Jan-Apr 2010

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Security SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Storage and Systems Management


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


BMC Software, Inc. BMC $7,187.96 $6,354.66 $1,899.20 78.7% 33.5% 2.1% 3.3x 10.0x 3.1x 7.0x 13.5%CA, Inc. CA $11,867.02 $10,797.02 $4,285.00 87.3% 34.5% -0.8% 2.5x 7.3x 2.3x 6.8x 32.3%CommVault Systems, Inc. CVLT $893.25 $744.61 $253.72 86.6% 10.8% 8.0% 2.9x 27.1x 2.9x 17.5x 68.6%Compuware Corporation CPWR $1,957.99 $1,905.13 $915.54 67.5% 23.5% -22.1% 2.1x 8.8x 1.6x n/a 15.1%EMC EMC $38,961.81 $35,759.77 $14,765.84 56.1% 17.9% 1.4% 2.4x 13.5x 2.5x 11.3x 51.7%FalconStor Software, Inc. FALC $135.67 $96.26 $85.56 79.7% -9.5% -0.8% 1.1x n/a 1.0x 12.1x -19.2%Network Appliance, Inc. NTAP $11,948.74 $9,804.96 $3,640.00 63.3% 13.9% 1.3% 2.7x 19.4x 2.6x 21.7x 89.5%SupportSoft, Inc. SPRT $202.63 $122.69 $23.74 23.9% -84.8% -50.3% 5.2x n/a 6.6x n/a 93.8%Symantec Corporation SYMC $13,520.63 $12,753.63 $5,921.85 85.5% 30.0% -4.8% 2.2x 7.2x 2.1x 5.7x -2.8%VMWare VMW $25,105.91 $22,799.43 $2,187.16 82.0% 16.7% 14.3% 10.4x 62.6x 11.0x 37.3x 136.3%

Median: $9,527.49 $8,079.81 $2,043.18 79.2% 17.3% 0.3% 2.6x 11.8x 2.6x 11.7x 42.0%

TTM Revenue Growth 0.3%TTM EBITDA Growth -2.8%TTM Earnings Growth 9.0%Gross Profit Margin 79.2%EBITDA Margin 17.3%Net Income Margin 9.0%SG&A Expenses as a % of Total Revenue 42.4%R&D Expenses as a % of Total Revenue 13.5%


Levered FCF Margin 14.7%Cash from Operations Growth (YoY) -0.1%Cash from Investing Growth (YoY) -65.7%Cash from Financing Growth (YoY) 47.1%Levered FCF Growth (YoY) 24.2%





Income Statement Analysis (Median) Storage & Systems Management Software Stock Market Return: Jan-Apr 2010

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Storage & Systems Management SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Supply Chain Management and Logistics


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


American Software, Inc. AMSW.A $161.70 $122.13 $75.32 57.5% 12.6% -6.6% 1.6x 12.9x 1.4x 9.8x 15.1%Ariba, Inc. ARBA $1,274.80 $1,102.12 $340.99 63.0% 11.4% -0.1% 3.2x 28.3x 3.0x 14.1x 48.5%Aspen Technology, Inc. AZPN $1,085.87 $1,072.95 $225.03 67.8% -18.2% -34.1% 4.8x n/a 2.7x n/a 51.9%CDC Software Corporation CDCS $274.32 $237.42 $204.07 54.4% 23.8% -12.0% 1.2x 4.9x 1.1x 4.5x n/aJDA Software Group JDAS $1,201.17 $1,397.45 $434.10 63.1% 22.3% 14.3% 3.2x 14.4x 4.0x 13.0x 104.8%Manhattan Associates, Inc. MANH $640.75 $520.34 $259.79 57.9% 17.9% -16.1% 2.0x 11.2x 2.2x 13.8x 72.4%ModusLink Global Solutions, Inc. MLNK $395.55 $231.41 $938.85 13.8% 6.3% -12.0% 0.2x 3.9x n/a n/a 141.4%Retalix Ltd. RTLX $308.75 $207.32 $192.39 40.7% 8.3% -13.2% 1.1x 13.0x n/a n/a 49.6%The Descartes Systems Group Inc. DSG $379.25 $279.63 $73.77 68.6% 21.8% 11.7% 3.8x 17.4x n/a n/a 89.3%XATA Corporation XATA $29.00 $75.34 $68.21 43.9% 6.6% 12.4% 1.1x 16.9x 1.1x n/a n/a

Median: $387.40 $258.53 $214.55 57.7% 12.0% -9.3% 1.8x 13.0x 2.2x 13.0x 62.2%



Levered FCF Margin 9.9%Cash from Operations Growth (YoY) -11.5%Cash from Investing Growth (YoY) 35.2%Cash from Financing Growth (YoY) 44.1%Levered FCF Growth (YoY) 36.2%






Supply Chain Management & Logistics Software Stock Market Return: Jan-Apr 2010

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Supply Chain Management & Logistics SW S&P 500 NASDAQ SEG SW Index

SEG Software Index Category: Wireless


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Itron, Inc. ITRI $3,199.45 $3,874.47 $1,798.21 31.5% 12.4% -1.2% 2.2x 17.4x 2.2x 17.8x 73.1%Openwave Systems Inc. OPWV $186.82 $77.82 $187.62 58.5% 2.6% -4.9% 0.4x 16.1x 0.4x n/a 85.8%PCTEL, Inc. PCTI $124.24 $64.17 $57.44 46.4% 0.3% -21.1% 1.1x 362.6x 1.1x 13.1x 33.7%Smith Micro Software, Inc. SMSI $316.78 $270.92 $107.28 85.6% 20.4% 9.0% 2.5x 12.4x 2.7x 8.7x 10.3%TeleCommunication Systems, Inc. TSYS $364.25 $470.96 $320.50 38.1% 13.6% 28.1% 1.5x 10.8x 1.4x 8.6x -29.6%

Median: $316.78 $270.92 $187.62 46.4% 12.4% -1.2% 1.5x 16.1x 1.4x 10.9x 33.7%








Income Statement Analysis (Median) Wireless Software Stock Market Return: Jan-Apr 2010

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Wireless SW S&P 500 NASDAQ SEG SW Index


Company Performance

SEG SaaS Index

SEG SaaS Index


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Athenahealth ATHN $989.06 $922.19 $201.98 58.4% 11.7% 36.9% 4.6x 38.9x 4.3x 22.9x -8.7%Concur CNQR $2,070.23 $1,812.48 $267.51 69.9% 24.3% 14.8% 6.8x 27.9x 8.1x 26.7x 54.8%Constant Contact CTCT $728.35 $612.58 $140.42 70.6% 5.1% 44.4% 4.4x 85.5x 4.2x 45.5x 60.4%DealerTrack TRAK $614.82 $416.53 $225.63 49.7% 10.9% -7.0% 1.8x 16.9x 1.9x 12.9x 0.6%DemandTec DMAN $202.50 $145.53 $79.05 67.4% -5.8% 5.4% 1.8x n/a 1.7x 28.4x -6.4%Kenexa KNXA $339.12 $282.15 $158.50 65.8% 9.4% -18.4% 1.8x 19.0x 1.7x 10.2x 128.8%LivePerson LPSN $409.71 $364.14 $87.49 75.9% 20.7% 17.2% 4.2x 20.1x 3.3x 13.5x 212.9%Medidata Solutions MDSO $339.10 $266.60 $140.40 64.4% 13.8% 32.8% 1.9x 13.8x 1.9x 12.9x n/aNetsuite N $892.04 $796.74 $168.91 65.5% -7.6% 5.6% 4.7x n/a 5.4x 83.7x 0.7%RightNow RNOW $524.59 $426.19 $158.75 69.3% 7.4% 10.6% 2.7x 36.3x 2.7x 24.2x 117.2%Salary.com SLRY $49.11 $40.41 $46.17 67.6% -28.1% 14.1% 0.9x n/a 1.0x n/a 31.5%Salesforce.com CRM $10,888.32 $10,130.15 $1,305.58 80.2% 12.1% 21.3% 7.8x 63.9x 7.4x 40.1x 100.0%SoundBite Communications SDBT $49.11 $12.79 $40.18 60.4% -3.4% -7.0% 0.3x n/a 0.3x n/a 80.2%SuccessFactors SFSF $1,514.15 $1,190.90 $161.61 76.8% -4.1% 30.7% 7.4x n/a 7.3x n/a 140.2%Taleo TLEO $1,028.73 $792.38 $205.38 67.0% 13.4% 13.7% 3.9x 28.8x 3.6x 13.8x 116.0%The Ultimate Software Group, Inc. ULTI $830.40 $802.24 $203.46 55.2% 5.4% 10.6% 3.9x 72.6x 3.9x 31.8x 78.6%Vocus VOCS $330.41 $227.00 $86.44 81.5% 3.5% 8.0% 2.6x 75.0x 2.6x 12.2x 0.3%

Median: $614.82 $426.19 $158.75 67.4% 7.4% 13.7% 3.9x 32.6x 3.3x 23.6x 69.5%

TTM Revenue Growth 13.7%TTM EBITDA Growth 42.8%TTM Earnings Growth 54.3%Gross Profit Margin 67.4%EBITDA Margin 7.4%Net Income Margin -0.2%SG&A Expenses as a % of Total Revenue 49.4%R&D Expenses as a % of Total Revenue 14.0%


Levered FCF Margin 6.1%Cash from Operations Growth (YoY) 20.8%Cash from Investing Growth (YoY) 27.1%Cash from Financing Growth (YoY) 99.0%Levered FCF Growth (YoY) n/a





Income Statement Analysis (Median) SEG SaaS Index Stock Market Return: Jan-Apr 2010

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SEG SaaS Index S&P 500 NASDAQ SEG SW Index


Category Performance

SEG Internet Index

SEG Internet Index: All Categories

Category Name Market Cap EV TTM RevenueTTM Gross

MarginTTM EBITDA

Margin

TTM Revenue Growth EV/ Revenue

EV/ EBITDA

Forward EV/ Revenue

Forward EV/

EBITDA


SEG Internet Index $335.26 $257.22 $154.39 62.4% 13.1% 1.2% 1.5x 13.0x 1.8x 10.0x 42.2% Advertising $704.16 $585.65 $283.11 55.7% 14.6% 0.1% 2.5x 14.3x 2.9x 11.5x 31.9% eCommerce & Portals $451.08 $413.32 $228.98 73.2% 12.8% 4.6% 2.1x 16.0x 2.5x 10.0x 47.7% Networking & Connectivity $398.78 $320.93 $213.82 38.3% 13.1% -0.6% 0.8x 9.5x 1.2x 7.9x 47.0% New Media $273.99 $142.50 $106.42 60.5% 2.9% -7.1% 1.3x 33.0x 1.3x 7.9x 68.7% Search Engine $22,900.13 $19,821.28 $721.91 63.1% 41.6% 12.7% 4.4x 14.3x 4.8x 11.8x 15.7%



Levered FCF Margin 7.7%Cash from Operations Growth (YoY) 29.9%Cash from Investing Growth (YoY) -23.4%Cash from Financing Growth (YoY) 24.3%Levered FCF Growth (YoY) -9.8%






SEG Internet Index Stock Market Return: Jan-Apr 2010

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SEG Internet Index S&P 500 NASDAQ SEG SW Index

SEG Internet Index Category: Advertising


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Autobytel Inc. ABTL $41.55 $15.49 $50.86 36.8% -11.0% -20.9% 0.3x n/a n/a n/a 70.4%Baidu.com, Inc. BIDU $23,965.47 $23,246.78 $721.91 71.4% 45.9% 43.6% 32.2x 70.2x 35.4x 78.3x 195.8%comScore Inc. SCOR $562.58 $485.22 $133.26 70.7% 13.9% 9.6% 3.6x 26.2x 3.6x 16.2x 42.2%Google Inc. GOOG $167,369.81 $140,855.81 $24,916.56 63.1% 41.6% 12.7% 5.7x 13.6x 5.6x 12.1x 32.8%InfoSpace, Inc. INSP $373.24 $147.65 $207.65 34.4% 8.1% 32.5% 0.7x 8.8x 0.5x 4.2x 57.9%LookSmart, Ltd. LOOK $23.66 -$1.22 $51.78 35.6% -5.4% -20.3% n/a n/a n/a n/a 10.4%Marchex Inc. MCHX $185.39 $151.76 $93.26 48.9% 3.7% -36.3% 1.6x 44.3x 1.5x 11.5x 16.4%SINA Corporation SINA $2,221.49 $1,499.94 $358.57 55.9% 15.2% -3.0% 4.2x 27.5x 3.6x 15.4x 31.0%Sohu.com Inc. SOHU $1,818.48 $1,304.49 $528.96 75.7% 41.8% 15.0% 2.5x 5.9x 2.3x 5.2x -7.7%Tucows Inc. TCX $45.14 $38.73 $80.94 28.4% 8.7% 3.1% 0.5x 5.5x 0.5x 4.6x 104.1%ValueClick, Inc. VCLK $845.75 $686.08 $415.33 73.3% 28.4% -29.8% 1.7x 5.8x 1.1x 4.4x -1.9%Yahoo! Inc. YHOO $22,900.13 $19,821.28 $6,477.23 55.6% 20.4% -7.1% 3.1x 15.0x 4.1x 11.5x 15.7%

Median: $704.16 $585.65 $283.11 55.7% 14.6% 0.1% 2.5x 14.3x 2.9x 11.5x 31.9%








Income Statement Analysis (Median) SEG Internet: Advertising Stock Market Return: Jan-Apr 2010

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S&P 500 NASDAQ SEG SW Index SEG Internet: Advertising

SEG Internet Index Category: eCommerce and Portals


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


1-800-FLOWERS.COM, Inc. FLWS $181.65 $217.51 $674.75 40.0% 4.0% 12.5% 0.3x 8.2x 0.2x 6.1x -2.1%Amazon.com, Inc. AMZN $61,101.63 $56,169.63 $26,751.00 22.5% 5.9% 34.3% 2.1x 35.9x 2.2x 29.4x 70.3%Bluefly, Inc. BFLY $52.87 $42.82 $81.22 38.9% 0.3% -15.2% 0.5x 151.9x n/a n/a 96.6%Digital River Inc. DRIV $1,109.61 $724.32 $399.56 83.6% 19.2% 1.5% 1.8x 9.4x 1.7x 6.5x -27.1%eBay Inc. EBAY $31,079.75 $26,551.85 $8,902.83 71.8% 30.4% 6.4% 3.0x 9.8x 2.8x 8.1x 44.4%Expedia, Inc. EXPE $6,706.19 $6,625.51 $3,037.63 79.5% 25.1% 5.3% 2.2x 8.7x 2.2x 7.7x 73.5%GSI Commerce, Inc. GSIC $1,675.36 $1,652.72 $1,004.22 60.3% 7.4% 3.9% 1.6x 22.2x 1.6x 15.7x 91.8%InsWeb Corp. INSW $24.13 $15.19 $35.14 100.0% -0.2% 3.4% 0.4x n/a n/a n/a n/aInternet Brands, Inc INET $477.38 $414.26 $102.61 81.5% 37.4% 0.0% 4.0x 10.8x 3.7x 9.3x 68.8%Liquidity Services, Inc. LQDT $308.51 $247.32 $245.95 42.4% 9.4% -5.5% 1.0x 10.7x 1.0x 9.6x 51.0%LiveDeal, Inc. LIVE $3.83 -$2.16 $10.91 48.5% -77.9% -48.9% n/a n/a n/a n/a -68.5%LoopNet, Inc. LOOP $387.91 $317.67 $75.21 85.4% 26.3% -12.1% 4.2x 16.0x 4.0x 10.0x 31.3%Market Leader, Inc. LEDR $55.34 $6.36 $23.20 100.0% -43.5% -31.2% 0.3x n/a n/a n/a 16.6%Mercadolibre, Inc. MELI $2,224.86 $2,163.69 $172.84 79.2% 34.7% 26.1% 12.5x 36.1x 10.6x 30.3x 84.5%Move, Inc. MOVE $343.05 $412.37 $212.01 77.1% 1.5% -12.4% 1.9x 130.2x 1.8x 16.5x 7.3%NetEase.com, Inc. NTES $4,521.58 $3,493.95 $550.23 74.7% 57.7% 21.8% 6.4x 11.0x 5.7x 9.8x 15.7%OpenTable, Inc. OPEN $883.06 $813.03 $73.85 70.7% 21.7% 26.1% 11.0x 50.7x 11.7x 54.7x n/aOverstock.com, Inc. OSTK $424.78 $345.81 $955.37 18.4% 2.3% 17.5% 0.4x 15.8x 0.6x 19.6x 37.2%priceline.com Incorporated PCLN $11,944.50 $11,340.21 $2,338.21 53.9% 21.8% 24.1% 4.8x 22.3x 4.7x 20.9x 169.9%Travelzoo, Inc. TZOO $327.89 $297.66 $99.51 93.9% 16.1% 18.7% 3.0x 18.6x 2.8x n/a 130.8%

Median: $451.08 $413.32 $228.98 73.2% 12.8% 4.6% 2.1x 16.0x 2.5x 10.0x 47.7%



Levered FCF Margin 8.7%Cash from Operations Growth (YoY) 58.2%Cash from Investing Growth (YoY) #VALUE!Cash from Financing Growth (YoY) #VALUE!Levered FCF Growth (YoY) 53.3%






SEG Internet: eCommerce & Portals Stock Market Return: Jan-Apr 2010

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SEG Internet: eCommerce and Portals S&P 500 NASDAQ SEG SW Index

SEG Internet Index Category: Networking and Connectivity


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


EarthLink Inc. ELNK $974.50 $493.37 $681.92 48.8% 33.1% -23.5% 0.7x 2.2x 0.6x 1.8x 19.1%Internap Network Services Corp. INAP $300.11 $242.42 $256.26 37.0% 10.3% 0.9% 0.9x 9.1x 1.0x 9.1x 108.3%Internet Gold Golden Lines Ltd. IGLD $602.78 $758.51 $328.17 31.5% 23.4% 6.6% 2.3x 9.9x 2.1x n/a 496.0%Internet Initiative Japan Inc. IIJI $497.45 $538.16 $722.51 20.3% 13.3% -2.9% 0.7x 5.6x n/a n/a 74.9%iPass Inc. IPAS $84.96 $43.18 $171.38 39.7% -0.1% -10.4% 0.3x n/a n/a n/a 25.4%Keynote Systems Inc. KEYN $161.41 $105.23 $79.97 49.8% 12.8% -2.2% 1.3x 10.3x 1.2x 6.8x 42.4%LogMeIn, Inc. LOGM $537.67 $399.44 $78.54 89.8% 16.9% 33.1% 5.1x 30.1x 4.9x 23.0x n/aSify Technologies Limited SIFY $72.36 $109.69 $156.92 36.8% -0.4% 14.4% 0.7x n/a n/a n/a 47.0%

Median: $398.78 $320.93 $213.82 38.3% 13.1% -0.6% 0.8x 9.5x 1.2x 7.9x 47.0%









SEG Internet: Networking & Connectivity Stock Market Return: Jan-Apr 2010

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SEG Internet: Networking & Connectivity S&P 500 NASDAQ SEG SW Index

SEG Internet Index Category: New Media


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Inuvo, Inc. INUV $20.22 $23.86 $51.66 31.9% 1.4% -20.2% 0.5x 33.1x n/a n/a 71.4%RealNetworks, Inc. RNWK $560.83 $183.18 $562.26 60.5% -4.7% -7.0% 0.3x n/a 0.3x 7.4x 68.7%TechTarget, Inc. TTGT $205.09 $133.71 $86.50 71.1% 2.2% -17.3% 1.5x 69.4x 1.4x 7.8x 20.9%The Knot, Inc. KNOT $273.99 $142.50 $106.42 79.7% 13.1% 2.4% 1.3x 10.2x 1.2x 8.0x -10.6%TheStreet.com, Inc. TSCM $120.83 $57.48 $60.24 51.7% 2.9% -15.0% 1.0x 32.9x 0.6x 7.4x 79.8%WebMD Health Corp. WBMD $2,460.75 $2,483.30 $438.54 62.2% 13.9% 17.4% 5.7x 40.7x 5.3x 21.9x 90.5%Yahoo! Inc. YHOO $22,900.13 $19,821.28 $6,477.23 55.6% 20.4% -7.1% 3.1x 15.0x 4.1x 11.5x 15.7%

Median: $273.99 $142.50 $106.42 60.5% 2.9% -7.1% 1.3x 33.0x 1.3x 7.9x 68.7%



Levered FCF Margin 7.2%Cash from Operations Growth (YoY) -0.6%Cash from Investing Growth (YoY) 26.0%Cash from Financing Growth (YoY) -2.0%Levered FCF Growth (YoY) 9.1%





Income Statement Analysis (Median) SEG Internet: New Media Stock Market Return: Jan-Apr 2010

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SEG Internet: New Media S&P 500 NASDAQ SEG SW Index

SEG Internet Index Category: Search Engine


MarginTTM EBITDA

Margin


Forward EV/ Revenue

Forward EV/ EBITDA


Baidu.com, Inc. BIDU $23,965.47 $23,246.78 $721.91 71.4% 45.9% 43.6% 32.2x 70.2x 35.4x 78.3x 195.8%Google Inc. GOOG $167,369.81 $140,855.81 $24,916.56 63.1% 41.6% 12.7% 5.7x 13.6x 5.6x 12.1x 32.8%LookSmart, Ltd. LOOK $23.66 -$1.22 $51.78 35.6% -5.4% -20.3% n/a n/a n/a n/a 10.4%Sohu.com Inc. SOHU $1,818.48 $1,304.49 $528.96 75.7% 41.8% 15.0% 2.5x 5.9x 2.3x 5.2x -7.7%Yahoo! Inc. YHOO $22,900.13 $19,821.28 $6,477.23 55.6% 20.4% -7.1% 3.1x 15.0x 4.1x 11.5x 15.7%

Median: $22,900.13 $19,821.28 $721.91 63.1% 41.6% 12.7% 4.4x 14.3x 4.8x 11.8x 15.7%



Levered FCF Margin 6.9%Cash from Operations Growth (YoY) 1.9%Cash from Investing Growth (YoY) -70.3%Cash from Financing Growth (YoY) -104.9%Levered FCF Growth (YoY) 78.7%






SEG Internet: Search Engine Stock Market Return: Jan-Apr 2010

-15%

-10%

-5%

0%

5%

10%

15%

SEG Internet: Search Engine S&P 500 NASDAQ SEG SW Index


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