web 2.0 weekly - 09-05-12

SOFTWARE & SERVICES 12 MAY 2009

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

DAVID SHORE, CFA, MBA 416.860.6784

[email protected]

Arun Thomas (Associate) 416.860.7666

SECTORS TO WATCH – MEDIA, AD NETWORK, VIDEO, AND SOCIAL NETWORK

EVERYZING RAISES $8.3 MILLION In the first week of May, $38.9 mill ion was raised on seven deals. Over the last three months, four sectors, Media, Ad Network, Video, and Social Network, have seen the most activity, bringing in a combined $209 mill ion on 25 transactions. Overall, capital market activity has trended downwards on the back of a declining economy and lower valuations. With any sustainable certainty and stabili ty in the public markets, we would expect to see activity pick up as more institutions participate in private placements.

Capital Market Activity by Sector - Last Three Months

63.4

56.9

49.5

39.7

30.227.6

18.314.4

12.0 12.08.9

6.8 5.5 5.0 4.7 4.1 4.1 3.1 2.5 2.0 2.0 2.0 1.3 1.3 0.60.0

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Capital Market Activity: Seven companies raised $38.9 mil lion in the first week of May. EveryZing, a company in the video search sector, raised $8.3 mill ion, fol lowed by Gist at $6.8 mil lion. All transactions except one (Resonate Networks) were greater than or equal to $5 mil lion.

Price Performance: The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return, while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% 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-two public Web 2.0 companies identified: Our Web 2.0 universe contains 92 companies, with a combined market cap of ~ $46 bill ion (Figure 1). The average market cap for the group is ~$500 mil lion (but a median of only $48.8 mil lion), with average trai ling revenue of $149.6 mil lion (median $56.0 mil lion). The companies are also generally profitable, with a median EBITDA margin of 16.0%. On a valuation basis, the overall average is 5.2x trai ling revenue (median 1.5x) and 9.4x trail ing EBITDA (median 8.7x). Thirteen of the companies have more than 500 employees.

Comparable Company Analys is > Web 2.0

C ompany Name L TM as of T icker Exchange

Trading

Currency HQ

Current

P rice

USD Market

C ap ($m)

USD LTM Total

R ev ($m)

USD L TM Total

E B ITDA ($m)

E BITDA

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R evenue

TEV/LTM

E B ITDA Employees

Acce le rize New Media, Inc. 1 2/31 /200 8 AC LZ OT C BB USD United S ta tes 0 .50 1 3.8 3.8 (4 .8) NM 4.8 x - 11

Actoz S of t C o., L td. 1 2/31 /200 8 A052790 KOS E KR W South Korea 14, 400 9 9.4 75. 7 15.1 20 .0% 0.9 x 4.7x NA

AQ Inte ractive , Inc. 1 2/31 /200 8 3838 T S E J PY J apan 48 ,000 .00 2 6.8 61. 8 4 .9 8 .0% - - NA

As socia ted Media Holdings Inc. 6 /30 /200 7 AS MH OTC PK USD United S ta tes 0 0 .1 0.1 (2 .3) NM 8.1 x - 3 B igstring Corp. 1 2/31 /200 8 BS GC OT C BB USD United S ta tes 0 .02 1 .2 0.1 (2 .1) NM 30.6x - 4

Be tawave Corpora tion 1 2/31 /200 8 BWAV OT C BB USD United S ta tes 0 3 .2 7.7 (11.8) NM - - 45

Be yond Commerce, Inc. 1 2/31 /200 8 BYOC OT C BB USD United S ta tes 1 .04 4 3.0 1.8 (8 .6) NM 25.4x - 43

Bright T hings plc 9 /30 /200 8 AIM:BGT AIM GBP United K ingdom 0 5 .6 0.2 (1 .7) NM 22.1x - 9 Broa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C PK USD United S ta tes 0 .30 2 5.3 0.0 (4 .6) NM - - 46

C DC C orp. 1 2/31 /200 8 CHIN .A Nasda qGS USD Hong Kong 1 157.3 409 .1 25.5 6 .2% 0.5 x 7.3x NA

C ha ngyou. com Limite d 3/31 /200 9 C YOU Nasda qGS USD C hina 29 .80 1,527.3 222 .5 13 5.1 60 .7% 6.0 x 9.9x 628

C hina G atewa y C orpora tion 9/30 /200 8 CGWY OT C PK USD United S ta tes 0 0 .0 6.7 (6 .6) -98.9% 0.0 x - 37 C hine se G amer International 3 /31 /200 9 GT SM:308 3 GT SM TWD Taiwan 225 .00 575.6 56. 2 31.5 56 .0% 9.1 x 1 6.2 x NA

C ornerW orld C orporation 1/31 /200 9 CWR L OT C BB USD United S ta tes 0 6 .4 1.3 NM NM 6.0 x - NA

C yberplex Inc. 1 2/31 /200 8 T S X:C X T SX C AD C ana da 1 .87 8 6.5 49. 4 4 .1 8 .3% 1.7 x 2 0.6 x NA

DADA S pA 9/30 /200 8 CM:DA CM EUR Ita ly 6 139.4 231 .1 36.9 16 .0% 0.8 x 5.0x 574 DXN Holdings B hd 11/30 /200 8 DXN KL S E MYR Ma la ys ia 0 .44 2 9.1 79. 0 10.5 13 .3% 0.6 x 4.7x NA

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

DigitalPost Inte ra ctive , Inc. 9 /30 /200 8 DGLP OT C BB USD United S ta tes 0 .02 1 .1 0.4 (3 .3) NM 5.0 x - 11

DigitalT own, Inc. 2 /28 /200 9 DGTW OTC BB USD United S ta tes 3 6 7.7 NM (3 .0) NM - - 3 Dolphin Digital Media, Inc. 1 2/31 /200 8 DPDM OTC BB USD United S ta tes 0 .68 3 3.5 0.9 (3 .0) NM 37.2x - NA

Eolith C o. L td. 1 2/31 /200 7 A041060 KOS E KR W South Korea 900 52.4 20. 2 (0 .1) -0 .3% 2.6 x - NA

E xtens ions , Inc. 1 2/31 /200 8 EXT I OT C PK USD United S ta tes 0 .15 1 4.2 NM NM NM - - NA

F inancia l Media G roup, Inc. 1 1/30 /200 8 FNGP OT C BB USD United S ta tes 0 0 .4 6.8 1 .2 18 .3% - - 22 F luid Mus ic Ca nada, Inc. 1 2/31 /200 8 T S X:FMN T SX CAD United S ta tes 0 .45 2 0.4 4.6 (9 .3) NM 1.9 x - NA

F rogs te r Interactive P icture s AG 6/30 /200 8 FRG XTR A EUR Germany 8 24.6 5.5 (3 .3) -60.6% 4.4 x - NA

Gama nia Digital E ntertainment C o. , L td. 3 /31 /200 9 6180 GT SM TWD Taiwan 38 .60 178.2 126 .0 20.9 16 .6% 1.2 x 7.4x NA

GameOn C o L td. 1 2/31 /200 8 3812 T S E J PY J apan 91, 800 9 1.0 76. 5 19.8 25 .9% 0.4 x 1.7x NA GeoSentr ic O yj 1 2/31 /200 8 GEO1V HLS E E UR F inland 0 .04 4 8.8 6.0 (13.4) NM 6.9 x - 94

G iant Intera ctive Group, Inc. 1 2/31 /200 8 GA NYS E USD C hina 8 1,862.2 233 .6 14 4.6 61 .9% - - NA

G igaMedia Ltd. 1 2/31 /200 8 G IGM Nasda qGS USD Taiwan 6 .38 344.7 190 .4 46.0 24 .2% 1.4 x 5.8x NA

Gravity C o., L td 9/30 /200 8 GR VY Nasda qGM USD South Korea 1 2 7.0 39. 7 7 .6 19 .2% - - 636

Gree, Inc. 6 /30 /200 8 T S E : 363 2 T S E J PY J apan 5 ,260 .00 1,203.8 30. 1 10.8 36 .0% 37.9x - NA GungHo O nline E ntertainment, Inc. 1 2/31 /200 8 3765 OS E J PY J apan 142, 600 167.5 115 .3 20.6 17 .8% 1.3 x 7.1x NA

HanbitS of t, Inc. 1 2/31 /200 8 A047080 KOS E KR W South Korea 4 ,855 .00 8 6.3 56. 4 (15.9) -28.2% 1.2 x - NA

IAC /InterActiveC orp. 3 /31 /200 9 IAC I Nasda qGS USD United S ta tes 16 2,392.0 1 ,40 6.4 42.6 3 .0% 0.4 x 1 1.9 x 3 ,20 0

IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C BB USD C ana da 0 .28 1 9.6 0.0 (0 .8) NM - - NA IdeaEdge, Inc. 1 2/31 /200 8 OT C BB :IDAE OT C BB USD United S ta tes 1 2 4.3 0.0 (4 .6) NM - - NA

is eemedia Inc. 1 2/31 /200 8 IE E T SXV C AD C ana da 0 .09 4 .0 1.3 (5 .1) NM 1.8 x - NA

Jumbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:JMB AS X AUD Aus tra lia 0 1 5.3 13. 7 5 .1 37 .2% 0.8 x 2.1x 72

JumpTV Inc. 1 2/31 /200 8 T S X:J T V T SX C AD C ana da 0 .71 6 9.7 13. 4 (8 .4) -62.6% 4.0 x - 237 Ka boose Inc. 1 2/31 /200 8 T S X:K AB T SX C AD C ana da 1 72.5 70. 7 7 .0 10 .0% 1.1 x 1 1.2 x NA

K ingsoft Co . Ltd. 1 2/31 /200 8 3888 S E HK HKD C hina 4 .14 576.9 120 .2 46.6 38 .7% 4.2 x 1 0.9 x NA

Lingo Media Corporation 9/30 /200 8 T S XV: LM T SXV CAD C ana da 1 11.1 3.5 (1 .5) -42.5% 3.4 x - NA

LiveWorld Inc. 1 2/31 /200 8 LV WD OTC PK USD United S ta tes 0 .07 2 .2 11. 8 (0 .5) -4 .3% 0.1 x - NA LookSmart, Ltd. 3 /31 /200 9 LOOK Nasda qGM USD United S ta tes 1 2 4.6 60. 7 (3 .8) -6 .3% - - 90

Magnitude Information S ys tems Inc. 1 2/31 /200 8 MAGY OT C BB USD United S ta tes 0 .01 4 .4 0.1 (3 .0) NM - - 14

Mixi, Inc. 1 2/31 /200 8 2121 T S E J PY J apan 450, 000 708.4 120 .3 45.8 38 .0% 5.0 x 1 3.2 x NA

Mode rn Times Group Mtg AB 3/31 /200 9 MTG B OM S E K Sweden 237 .50 2,020.2 1 ,73 7.6 26 6.2 15 .3% 1.5 x 9.7x 2 ,96 9 Moggle , Inc 1 2/31 /200 8 MMOG OTC BB USD United S ta tes 2 8 3.5 NM (1 .1) NM - - 3

MOKO.mobi L imited 12/31 /200 8 MK B AS X AUD Aus tra lia 0 .08 5 .0 1.1 (2 .3) NM 3.5 x - NA

NEOW IZ Games C orpora tion 1 2/31 /200 8 A095660 KOS E KR W South Korea 62, 400 487.1 200 .8 53.9 26 .8% 2.4 x 8.9x NA

NetDragon W ebSoft, Inc. 1 2/31 /200 8 777 S E HK HKD C hina 5 .53 377.2 87. 3 39.9 45 .7% 2.8 x 6.1x 2 ,42 6 Nete ase.com I nc. 1 2/31 /200 8 NT E S Nasda qGS USD C hina 31 3,809.7 451 .8 29 3.7 65 .0% - - NA

NeXplore Corpora tion 9/30 /200 7 NXPC OT C PK USD United S ta tes 0 .70 3 9.0 NM (4 .9) NM - - 19

Ngi G roup Inc. 1 2/31 /200 8 2497 T S E J PY J apan 31, 700 4 0.2 100 .8 31.0 30 .8% - - NA

Northgate Technologies L imited 12/31 /200 8 590057 BS E INR India 39 .15 2 7.6 136 .2 24.0 17 .6% 0.2 x 1.2x 286 Open T ext Corp. 3 /31 /200 9 OT E X Nasda qGS USD C ana da 32 1,669.7 782 .6 19 9.2 25 .5% 2.2 x 8.7x 2 ,91 5

Openwave S ys tems Inc. 3 /31 /200 9 OPW V Nasda qGS USD United S ta tes 1 .27 105.8 197 .2 (2 .9) -1 .5% 0.0 x - 657

Pe rf ect W or ld C o., Ltd. 1 2/31 /200 8 PW R D Nasda qGS USD C hina 19 997.1 210 .5 11 3.9 54 .1% - - NA

PhotoChannel Network s Inc. 1 2/31 /200 8 T S XV: PN T SXV C AD C ana da 1 .59 4 7.0 17. 2 (0 .8) -4 .9% 2.7 x - NA Quepa sa C orp. 1 2/31 /200 8 QPS A Nasda qCM USD United S ta tes 1 1 2.3 0.1 (11.4) NM - - 74

OAO RB C Information S ys tems 12/31 /200 7 R BC I R T S USD R us s ia 1 .25 173.4 146 .9 19.2 13 .1% 0.0 x 0.3x NA

Shanda Interactive E ntertainment L td. 1 2/31 /200 8 SNDA Nasda qGS USD C hina 49 3,426.1 522 .7 24 0.2 46 .0% 0.2 x 0.4x NA

Shutte rf ly, Inc. 3 /31 /200 9 S F LY Nasda qGS USD United S ta tes 12 .85 323.5 215 .2 28.3 13 .2% 1.2 x 9.1x 514 S K C ommunications Co. , Ltd. 1 2/31 /200 7 A066270 KOS E KR W South Korea 9, 390 313.1 168 .1 15.8 9 .4% 1.9 x 1 9.8 x NA

SNAP Inte ra ctive , Inc. 1 2/31 /200 8 S T V I OT C BB USD United S ta tes 0 .75 8 .1 3.0 0 .9 31 .4% 2.2 x 7.0x 11

SNM G lobal Holdings 9/30 /200 8 SNMN OTC PK USD United S ta tes 0 0 .0 2.0 (0 .7) -34.8% 1.1 x - 33

S ocia l Media Ve nures , Inc. 1 2/31 /200 8 SMVI OT C PK USD United S ta tes 0 .01 0 .0 0.1 (0 .1) -60.5% 0.0 x - NA S ohu. com Inc. 3 /31 /200 9 SOHU Nasda qGS USD C hina 55 2,116.8 460 .0 20 0.4 43 .6% 3.8 x 8.7x 3 ,19 7

S ite search C orporation 1/31 /200 9 S T PC OT C BB USD United S ta tes 3 .50 2 8.2 NM (1 .1) NM - - 15

S park Networks , Inc. 1 2/31 /200 8 LOV AMEX USD United S ta tes 3 5 6.5 57. 3 12.3 NM 1.0 x 4.6x 183

SpectrumDNA, Inc. 1 2/31 /200 8 SP XA OT C BB USD United S ta tes 0 .42 2 0.5 0.1 (2 .5) 48 .9% - - 7 T encent Holdings L td. 1 2/31 /200 8 700 S E HK HKD C hina 71 16,5 68. 2 1 ,04 7.8 51 2.5 -12.0% 17.2x 3 5.3 x 6 ,19 4

T he Parent C ompany 8/2/2008 K IDS .Q OT C PK USD United S ta tes 0 .01 0 .3 112 .0 (13.5) 33 .7% 0.2 x - 347

T he 9 L imited 12/31 /200 8 NCT Y Nasda qGS USD C hina 9 253.7 250 .2 84.3 2 .6% - - NA

The S treet.com, Inc. 3 /31 /200 9 T S C M Nasda qGM USD United S ta tes 2 .05 6 2.8 67. 0 1 .7 -50.6% - - 310

T otal S port Online A S 3/31 /200 6 TOSO OT CNO NOK Norwa y 0 0 .1 2.1 (1 .1) -6 .2% 4.6 x - 16 T ree.C om, Inc. 3 /31 /200 9 TR E E Nasda qGM USD United S ta tes 12 .09 130.5 215 .6 (13.3) 0 .4% 0.6 x - 700

Unis erve C ommunications Corp. 1 1/30 /200 8 T S XV: US S T SXV C AD C ana da 0 0 .8 25. 8 0 .1 21 .9% 0.1 x 2 9.5 x NA

United Online Inc. 3 /31 /200 9 UNTD Nasda qGS USD United S ta tes 7 .24 605.1 811 .2 17 7.3 -78.2% 1.1 x 5.0x 1 ,46 9

UOMO Media , Inc 1/31 /200 9 UOMO OTC BB USD C ana da 0 21.0 0.6 (0 .5) 18 .1% 33.6x - NA Va lueC lick Inc. 3 /31 /200 9 VC LK Nasda qGS USD United S ta tes 10 .34 897.0 591 .7 10 6.9 NM 1.3 x 7.4x 1 ,18 9

VO IS , Inc. 1 2/31 /200 8 VOIS OT C BB USD United S ta tes 0 2 .7 0.0 (1 .3) -19.8% - - 4

Webzen Inc. 1 2/31 /200 8 W ZEN Nasda qGM USD South Korea 3 .28 3 8.9 23. 1 (4 .6) -98.2% - - NA

W izza rd S of twa re Corpora tion 1 2/31 /200 8 W ZE AMEX USD United S ta tes 1 2 9.2 6.1 (6 .0) NM 4.8 x - 110 Wor lds .com Inc. 1 2/31 /200 8 WDDD OTC BB USD United S ta tes 0 .17 8 .9 0.1 (0 .7) NM - - 1

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

XING AG 12/31 /200 8 O1B C XTR A EUR Germany 28 .95 208.1 47. 6 15.2 22 .4% 3.1 x 9.8x 174

YedangOnline Corp. 1 2/31 /200 7 A052770 KOS E KR W South Korea 8, 900 113.3 55. 6 12.4 -7 .6% 2.0 x 9.0x NA Ynk Korea Inc. 1 2/31 /200 7 A023770 KOS E KR W South Korea 6 ,850 .00 1 3.6 15. 8 (1 .2) NM 0.9 x - NA

ZipLocal Inc. 1 2/31 /200 8 T S XV: ZIP T SXV C AD C ana da 0 0 .3 2.8 (3 .0) 0 .0% 0.6 x - NA

H igh 16,5 68. 2 1 ,737 .6 51 2.5 65 .0% 37.9x 3 5.3 x 6 ,194

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

Average 500.3 149.6 33.4 7.5% 5.2x 9.4x 644

Median 48.8 56. 0 0 .9 16 .0% 1.5 x 8.7x 179

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 )

Will May be better than April? Month-to-date financings in May totalled $38.9 mil lion and has commenced slowly - just l ike Apri l. The month of May (so far) has registered seven deals, al l except one greater than $5 mill ion. No deals were greater than $10 mill ion, with the capital raise by EveryZing being the largest at $8.3 mill ion. The average value for Apri l was $6.5 mil lion on 21 financings. The March average was $6.6 mill ion on 24 financings. Except for two deals (Kaixin001.com and Collective Media) al l were below $20 mil lion for the last three months and a total of four deals were greater than or equal to $15 mil lion.

Financing Activity Last Three Months

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

EveryZing largest deal in May: A week into May and EveryZing tops the l ist with a $8.3 mill ion raise, fol lowed by Gist at $6.8 mill ion. The month so far has seen four deals about the $6 mill ion mark. For additional details, see Figures 23 and 24 (at end of note). Further, the month of May also witnessed the spin-off of StumbleUpon from E-bay on a $29 mill ion valuation. E-bay had bought StumbleUpon for $75 mill ion.

Financing & M/A Summary - Last Three Months

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

Media is the most active sector: Activity over the last three months was busiest in the Media sector, with eight companies raising over $63.4 mil lion (Figure 4). The Ad Network sector has the next highest totals, with seven companies raising $56.9 mil lion.

Capital Market Activity by Sector - Last Three Months

63.4

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6.8 5.5 5.0 4.7 4.1 4.1 3.1 2.5 2.0 2.0 2.0 1.3 1.3 0.60.0

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

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

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

Web 2.0 Index Price Performance

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

Figure 5. Web 2.0 Price Performance Source. Capital IQ

A positive week: The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.

1 Week Price Performance

-21.8%-13.9%

-11.7%-8.6%-8.2%

-6.0%-5.8%-5.0%-4.7%-4.5%-4.2%-3.9%-3.9%-3.2%-2.7%-2.5%-2.1%-2.1%-1.1%-1.1%-0.7%

0.0%0.0%0.7%0.7%0.8%1.9%2.2%2.4%2.8%3.6%3.8%

6.0%7.9%8.0%8.5%8.7%9.0%

10.4%11.4%12.2%

14.3%21.9%

27.5%27.5%

-30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0%

Beyond Commerce, Inc .Ngi Group Inc .

Frogs ter Interactive Pictures AGChangyou.com Limited

DADA S pAV alueClick Inc .

S handa Interactive Entertainment Ltd.GameOn Co Ltd.

Gree, Inc .Northgate Technologies L imited

TheS treet.com, Inc .Tencent Holdings Ltd.

S ohu.com Inc .XING AG

S K Communications Co. , Ltd.Open Tex t Corp.

The9 L imitedS hutterf ly , Inc .

IAC/InterA ctiveCorp.Eolith Co. Ltd.

Mix i, Inc .Chines e Gamer InternationalGiant Interactive Group, Inc .

Neteas e.com Inc .A ctoz S of t Co. , Ltd.

Openw ave S ys tems Inc .Y edangOnline Corp.AQ Interactive, Inc .

NetDragon WebS of t, Inc .Perfect World Co. , Ltd.

G igaMedia Ltd.S park Netw orks , Inc .

PhotoChannel Netw orks Inc .HanbitS of t, Inc .

Modern Times Group Mtg A BNEOWIZ Games Corporation

Cyberplex Inc .Gamania Digita l Entertainment Co. ,

K ings of t Co. Ltd.CDC Corp.

LookSmart, Ltd.Webzen Inc .

Y nk Korea Inc .United Online Inc .Tree.Com, Inc .

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

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

K ey Developments

Company Headline Notes

L ookSmart, Ltd. (NasdaqGM:LOOK ) LookS mart L td. Announces Unaudited Cons olidated

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

2009

LookS mart L td. announced unaudited cons olidated ea rnings res ults for the firs t quarter ended March 31, 20 09. For the quarter, the

company's revenues were $13. 3 million, a 24% dec reas e from $17. 5 million in the f irs t quarter of 2008 and a 11% dec reas e from $14. 9

million in the fourth quarter of 2008. Net loss for the quarter was $2. 0 million, or $0. 12 per sha re compared to net los s for the first quarter of

2008 of $0. 5 million, or $0. 02 per sha re and net loss for the fourth quarter of 2008 of $12.4 mil lion, or $0. 73 per s ha re. Loss from continuing

opera tions for the quarter was $2. 1 million or $0 .13 per s ha re compared to a los s from continuing opera tions in the f irst quarter of 2008 of

$0.2 mi llion or $0.01 per s hare and los s from continuing opera tions for the fourth quarter of 2008 of $11.4 mil lion. Non-GAAP net los s for the

quarter was $1. 6 million compared to non-GAAP net income of $0. 8 million in the firs t quarter of 2008 and non-GAAP net los s for the fourth

quarter of 2008 of $1.1 million. Capita l expenditures for the quarte r were $0. 9 million, compared to $1. 0 million in the fourth quarter of 2008,

and $0. 6 million in the firs t quarter of 2008. Los s from operations was $2. 2 million compared with $0. 61 million for the s ame period la st year. L

S NAP Interactive, Inc . (OTCB B:S TVI) S NAP I nteractive Inc . B eta -Launches

AreY ouInteres ted. com Online Dating W ebs ite Us ing

Facebook (R ) Connect

S NAP I nteractive Inc . announced the beta launch of AreY ouInteres ted. com, a stand-a lone online dating website incorporating a Facebook

Connec t integra tion. AreY ouInterested.com repres ents an expanded version of S NA P 's popular F acebook P latform dating applica tion 'Are

Y ou I nteres ted,' which pres ently has more than 13 million us ers. T he website has been built to include a number of unique features for an

online dating website. B y utilizing F acebook C onnec t, us ers can login to AreY ouInteres ted.com with their Facebook identity and allow the

site to access the member's exis ting F acebook profile information. Additiona lly, us ers are able to s ha re content and ac tions taken on

AreY ouInteres ted. com with their friends back on F acebook for a better overa ll experience. W ith Facebook Connect, users benefit from the

following fea tures : T rusted Au thentica tion-eas ily authentica te into partner si tes us ing their Facebook account; R eal I dentity-leverage their

rea l identity acros s the W eb i n a trus ted envi ronment; Fri end L ink ing-take their friends with them wherever they go, enabling trus ted s ocia l

context anywhere on the W eb; Dynamic P rivacy-as surance that the s ame privacy s ettings us ers have s et up on F acebook will follow them whe

C hangyou.com L imited

(NasdaqGS :C YOU)

Changyou.com Limited R eports Unaudited C onsolidated


2009; P rov ides E arnings Guidance for the S econd

Quarter of 2009

Changyou.com Limited reported unaudited cons olidated ea rnings res ults for the firs t quarter ended March 31, 2009. For the quarter, the

company's tota l revenues increas ed 6% quarter-over-quarter and 50% yea r-over-year to $61.6 million compared to total revenue of $41

million for the s ame quarter a year ago. T he inc reases were mainly a ttributable to an increas e in TLB B revenues as a result of user base

expans ion and enhanced us er loya lty , a s well a s inc reased revenues from B lade Online ( 'B O') . Opera ting profi t increas ed 12% quarter-over-

quarter and 79% ye ar-over-year to $37. 9 million compared to operating profi t of $21.2 million for the same quarter a yea r ago. N et income

increas ed 15% quarter-over-quarter and 120% year-over-year to $33.5 mil lion compa red to net income of $15. 2 million for the s ame quarter

a yea r ago. N on-GAAP net income increas ed 13% quarter-over-quarter and 100% yea r-over-yea r to $34.4 million compared to net income of

$17.2 mi llion for the s ame quarter a yea r ago. B as ic and fully dil uted ea rnings per A DS were $0.71, compared to $0. 32 in the firs t quarter of

2008. Non-GAAP fully diluted ea rnings per ADS were $0. 72, compared to $0.36 in the firs t quarter of 2008. Income before income tax expens

S ohu.com Inc . (NasdaqGS :SOHU) S ohu.com Inc . R eports Unaudited Cons olida ted E arnings

R es ults for the F irst Quarter E nded March 31, 2009 ;

P rovides E arnings G uidance for the S econd Quarter of

2009

S ohu.com Inc. repo rted unaudited cons olida ted earnings results for the first quarter ended March 31, 2009. GAAP net income of $44. 6

million or $1.15 per fully diluted s ha re. GAAP net income was 2. 1 times that of first quarter 2008. GAAP net income included $33.5 million of

GAAP net income contributed by online game bus iness with a 15% quarter-on-quarter increas e or a 120% yea r-on-year inc rease. Non-GAAP

net income (i.e. , exc luding sha re-bas ed compensation expense) of $46. 9 million, or $1.20 per fully diluted share, ex ceeding the high end of

company guidance of $1. 10 by 10 cents . Non-GAAP net income increas ed 87% yea r-on-year. N on-G AAP net income included $34.4 million

of Non-GAAP net income contributed by online game busines s with a 13% quarter-on-quarter increas e or a 100% yea r-on-year increas e.

Total revenues were $115. 7 million, repres enting a dec reas e of 5% s equentia lly and increase of 36% yea r-on-yea r. The company als o

reported operating profi t of $50,037, 000, income before income tax expens e of $51, 160, 000 and income from continuing operations of

$44,574, 000 agains t operating profit of $30, 531,000, income before income tax expens e of $30,740, 000 and income from continuing operations of $21,555, 000 for the same period a year ago.

TheS treet.com, Inc . (NasdaqGM:TSCM) TheS treet.com Inc. R eports E arnings R es ults for Fi rs t

Quarter E nded March 31, 2009 ; Announces Non C ash

Impa irment Charges in F irst Quarter of 2009

TheS treet. com Inc . reported earnings results for f irst quarter ende d March 31, 2009. F or the quarter, the company re ported net loss of

$45,675, 349 and los s attributable to common s tockholders of $45,771, 773 or $1. 50 los s per diluted sha re on tota l revenues of $14, 026,864

compared to net income of $2,446 ,649 and income attributable to common s tockholders of $2, 350,225 or $0. 07 per diluted s ha re on total

revenues of $18, 947, 985 for the s ame period a year ago. Opera ting los s was $29, 449, 197 compared to operating income of $1, 909, 114 for

the same period a yea r ago. Los s from continuing operations before income taxes of $29,449, 197 compared to i ncome from continuing

opera tions before incomes taxes of $2, 595, 308 for the s ame period a yea r a go. Loss from conti nuing operations of $45, 676,274 compared to

loss from continuing operations of $2, 449,380 for the s ame period a year ago. Adjusted E B I T DA was negative at $620, 400 compared to

adjusted E B IT DA of $3, 871,084 for the s ame period a year ago. C apital expenditures were $647, 948 compared to capita l expenditures of

$1,390, 341 for the same period a yea r ago. E B I TDA was negative at $28,207, 672 compared to E B IT DA of $3, 169,987 for the s ame period a y

Wizzard Software Corporation

(AMEX: WZE )

W izz ard S oftware C orporati on has filed a S helf

R egis tra tion in the amount of $5. 70 million .

W izza rd S oftware C orporation has filed a S helf R egistration in the amount of $5.70 million.

C hina Gateway Corporation

(OTCPK :C GWY)

China G ateway Deleted From OT C BB China G ateway Corporation’s common stock has been deleted from O TC B ulletin B oard effec tive May 6, 2009 on account of its fa ilure to

comply with NAS D 6530. T he company has been added to NB B .

S NM G lobal Holdings (OTCP K:SNMN) Mel R ich to S tep Down as P resident of S NM G lobal

Holdings

S NM G lobal Holdings announced that the company P res ident Mel R ich will be s tepping down immediately and the company 's day by day

respons ibilities will be handled by newly hired C E O W illiam B rowning. Mr. R ich was appointed interim P res ident in 2008 and will remain with

the company as a S pecia l Adv isor to B oard Direc tors for E nterta inment S ervices .

P erfect World C o. , Ltd.

(NasdaqGS :PWR D)

P erfect W orld Co. , L td. Announces B rand New 2D

MMORP G 'Fantasy Zhu Xian'

P erfect W orld Co. , L td. announced that it plans to releas e a brand new 2D turn-bas ed ca rtoon MMOR PG 'Fantasy Zhu Xian' in 2009.

Fantasy Zhu Xian' is P erfect W orld's f irst 2D turn-bas ed carto on MMOR PG , which is run on the company 's proprieta ry E P AR CH engine. The

game is bas ed on a popu la r internet fantas y novel 'Z hu Xian. ' P l ayers will be ushered into the unknown world of 'Zhu X ian' to unravel a series

of mys teries . 'Fantasy Zhu Xian' will a lso fea ture a number of new characters which will interact with the origina l cha racters of 'Zhu X ian' to

generate new stories .

Gamania Digital E ntertainment C o. ,

L td. (GTSM:6180)

Gamania D igita l E ntertainment C o. L td. R eports

Cons olida ted E arnings R es ults for the F irs t Quarter

March 31, 2009

Gamania Digita l E ntertainment Co. L td. reported cons olidated earnings res ults for the firs t quarter March 31, 2009. F or the quarter, the

company reported an opera ting revenues were T WD 1, 363,614, 000, operating income was TWD 217, 031,000, net income was T WD

165,308, 000 and ea rnings per share was T W D 1. 13.

United Online Inc. (NasdaqGS :UNTD) United O nline I nc. R eports E a rnings R esults fo r the F irst

Quarter E nded March 31, 2009; P rovides E a rnings

Guidance for the S econd Quarter of 2009; Declares

Quarterly C as h D ividend P ayable on May 29, 2009

United Online I nc. reported ea rnings results for the f irst quarter ended March 31, 2009. F or the period, the company reported cons olida ted

revenues were $263. 6 million, an increase of 116% against the yea r-ago quarter. T he inc reas e was primari ly a ttributable to the company's

acquis ition of F TD in Augus t 2008. Adjus ted OIBDA was $61. 5 million, an increase of 59% against the year-ago quarter. GA AP diluted net

income per s ha re applicable to common s tockholders was $0 .20, an increas e of 11% aga inst the yea r-ago quarter. Adjus ted diluted net

income per s ha re applicable to common s tockholders was $0 .35, an increas e of 13% aga inst the yea r-ago quarter. C ash flows from

opera tions were $43. 6 million, an increase of 50% aga inst the year-ago quarter. T he increas e was primarily attributabl e to the F TD

acquis ition . Opera ting income was $37. 4 million aga ins t $20.4 million for the same period earlier. I ncome before income taxes were $29.6

million aga ins t $22.0 million for the same period earlier. Net income and net income applicable to common stock holders were $17.0 million

or $0. 20 per bas ic and diluted ea rnings per s ha re against net income and net income applicable to common s tock holders of $13. 0 million or $0.18 per bas ic and diluted per sha re for the s ame period earlier.

V alueClick Inc . (NasdaqGS :VC LK ) V a lueClick I nc. R eports F inancia l R es ults for the Firs t

Quarter E nded March 31, 2009 ; P rov ides E a rnings

Guidance for the S econd Quarter of 2009

V a lueClick I nc. reported financia l res ults for the f irst quarter e nded March 31, 2009. R evenue for the firs t quarter of 2 009 was $135.0 million

against $169 million a year ago. Adjus ted-E B IT DA for the f irst quarter of 2009 was $34. 7 million against $45. 7 million a yea r ago. Net income

from continuing operations and GAAP net income for the first quarter of 2009 wa s $13.2 million or $0.15 per diluted common s hare aga inst

net income from continuing operations and G AAP net income for the first quarter of 2008 of $19. 2 million, or $0. 19 per diluted common

sha re a year ago. Non-GAAP net income for the f irst quarter of 2009, which exc ludes discontinued operations, stock -bas ed compensation,

and amorti za tion of intangible ass ets was $18. 8 million, or $0.22 per diluted common s ha re aga inst non-G A AP net income of $ 27.5 million or

$0.28 per diluted common s ha re a year ago. Income from opera tions was $23.7 million aga ins t $30 mi llion a year ago. I ncome before

income taxes was $23. 5 million against $33 million a yea r ago.

The company provides earnings guidance for the second quarter of 2009. For the quarter, the company expects revenues in the range of $124

Open T ext C orp. (NasdaqGS :OTEX) Open T ext R eports E a rnings R es ults for T hird Quarter

and N ine Months E nded March 31, 2009

Open T ext C orp. reported earnings res ults for third quarter and nine months ended March 31, 2009. F or the quarter, the company reported

net income of $22,035, 000 or $0. 41 per diluted s hare on total revenues of $192, 035, 000 compared to net income of $7,267, 000 or $0.14 per

diluted sha re on tota l revenues of $178, 762,000 for the s ame period a yea r ago. Income from operations was $20, 957,000 compared to

income from operations of $23, 544, 000 for the s ame period a year ago. Income before income taxes was $30,181, 000 compared to income

before income tax es of $10, 029,000 for the s ame period a year ago. Net cash provided by opera ting ac tiv ities of $72,887, 000 compared to

net cas h provided by opera ting activ ities of $49,808, 000 for the same period a year ago.

For nine months period, the company reported net income of $37, 457,000 or $0. 71 per diluted s ha re on tota l revenues of $582,309, 000

compared to net income of $25,75 2,000 or $0. 49 per diluted s ha re on tota l revenues of $525,263, 000 for the same period a yea r ago.

Income from operations of $63,189, 000 compared to income from ope rations of $71, 086, 000 for the s ame period a year ago. Income before in

L ingo Media C orporation (TSXV:LM) L ingo Media C orporation F orms S trategic Alliance with

the S hangha i Y angpu D is trict P eople's Government

L ingo Media C orporation announced that it is forming a stra te gic a lliance with the S hangha i Y angpu D istrict P eople's Government. The

company will provide E nglis h Language Learning ('E LL ') serv ices to the Y angpu Government.

Tencent Holdings Ltd. (S EHK:700) Tencent H oldings Ltd. , 0. 10 (HK D), Cas h D ividend, May-

06-2009

Tencent Holdings Ltd. , 0. 10 (HK D), C ash D ividend, May-06-2009

CDC C orp. (NasdaqGS : CHIN.A) CDC Corp. A nnounces R es ignation of Fang X in from I ts

B oard

CDC Corp. announced that Mr. Fang X in, a member of the boards of direc tors of CDC Corp. and the company 's subs idia ry , China . com Inc .,

resigned from both such boards of direc tors effec tive as of May 5, 2009. Mr. F ang has confirmed that his res ignation was not related to any

disagreement wi th either of the board of directors of the company or C hina . com.

S pectrumDNA, Inc . (OTC BB :S PXA) S pec trumDNA to Launch G ame-Changing Location-

B ase d S oc ia l Media E ngine C alled P lanetT agger

S pectrumDNA, Inc . has announced the crea tion of P lanetT agger, the first re brandable s ocia l media engine tha t marries online and mobile

location-based s ervices with the context of a community to create a highly relevant and re warding experience for community owners , us ers

and advertis ers . The product i s a s ca la ble, S aaS (s oftware-as-a -s ervice) engine tha t can be white-label ed and cus tomiz ed for any brand,

webs ite or media property . The purpos e of P lanetT agger is to combine the best of ge o-positioning, loca tion-bas ed s ervices and mobile

mes s aging and offer it to organizations tha t a re a lready s pending the time and money to engage a pa rticular niche or mega-niche affinity

group from N asca r enthusi asts, to busines s or adventure travelers , to college communities or sports fans--in order to create a more powerful

and relevant community of people and events .

Modern Times Group Mtg AB (OM:MTG

B ); Norwegian Broadcas ting Corp. ;

R iks tv As ; Telenor ASA (OB: TEL ); TV2

Gruppen ASA

MT G R eportedl y E yes S tak e I n R iks T V Norwegian B roadcasting Corp. (NR K ) and T V 2 G ruppen AS A (T V 2) s a id tha t they plan to sell their s tak es in R ik sT V As. I t is believed that

Telenor AS A is a lso considering a s a le of its stake in the firm. I t is believed tha t this paves way for Modern T imes G roup MT G AB to ra i se its

mark et s hare in Norway. T or F uglevik , an off ic ia l at MTG s a id that it is interes ted, but not in a mino ri ty pos t. T he news paper named the firm

as another pos sible buyer.

C yberplex Inc . (TS X:C X) Cyberplex Inc . R eports E arnings R es ults for the F irs t

Quarter E nded March 31, 2009

Cyberplex Inc . reported earnings res ults for the firs t quarter ended March 31 , 2009. For the quarter, the company reported revenues were

$32.1 mi llion was an increas e of 307% over the $7. 9 million genera ted las t yea r. T his growth was achieved primarily from the W eb

Advertis ing divi sion through the addition of new publis hers , the inc rease in campa ign budgets and the continued momentum of proprietary

publishing initia tives. I ncome before amortiz a tion, interes t and income taxes increas ed to $4.3 milli on, up from $221, 000 in the f irst quarter o f

2008. Net income was $4.1 million or $0. 07 diluted per s ha re compare d to a net income of $0. 5 million or $0. 00 diluted per s hare for the

same quarter a year ago. I ncome from opera tions was $4. 2 million against $0. 6 million for the s ame quarter a yea r ago.

DADA SpA (CM:DA) DADA S pA R eports E a rnings R es ults for the F irst

Quarter of 2009

DADA S pA reported ea rnings res ults for the f irst quarter of 2009. The company regis tered a net profit of E UR 0. 7 million in the firs t quarter of

2009, down from E UR 3. 9 million in the year-ago period. The revenue dropped to E UR 38. 4 million from E UR 40. 6 million in the firs t quarter

of 2008. The operating income s tood at E UR 2.4 million, down from E UR 5. 3 million.

J umbuck E ntertainment Pty Ltd.

(ASX:JMB)

Update to Jumbuck E nterta inment P ty L td. 's E quity

B uyback on May 7, 2009

As of May 7, 2009, Jumbuck E ntertainment P ty L td. has repurchas ed 12, 750 sha res for a tota l cos t of AUD 0. 005 million under the program.

NetDragon WebSoft, Inc. (S EHK :777) NetDragon Launches E nglis h E xpansion P ack for

E udemons Online - 'The Div ine P a th'

NetDragon W ebS oft, I nc. announced the release of a new E nglish language expans ion pack, 'T he Divi ne P a th', for its fantasy online game,

E udemons Online, on May 8, 2009. T he E nglish vers ion follows the launch of the C hinese language expans ion pack ( 'Zhong S hen G ui La i')

in J anuary 2009, which features elements of G reek mythology and div ine eudemons , offering a fresh experience to players , while

ma intaining the integrity of the origina l title . T he laun ch of the E nglis h expansion pack is expected to bols ter the influence of E udemons

Online in the overseas markets .

T ree.Com, Inc . (NasdaqGM:TR E E ) Tree. Com Inc . R eports E arnings R es ults for the F irs t

Quarter E nded March 31, 2009

Tree. Com Inc . reported earnings res ults for the firs t quarter ended March 31 , 2009. For the quarter, the company reported net income of

$3.16 mi llion. In contras t, the company reported net los s of $9. 8 million for the s ame quarter in the previous year.

Accelerize New Media, Inc.

(OTCB B:ACL Z)

Acceleriz e New Media , I nc. Announces E a rnings R es ults

for th e F irst Quarter E nding March 31, 2009

Accelerize New Media , I nc. announced ea rnings results for the f irs t quarter ending March 31, 2009. For the quarter, the company reported

net loss of $969,298 compared to net los s of $953, 062 for the same quarter in the previous ye a r.

IAC /InterActiveC orp. (NasdaqGS : IAC I);

Yahoo! Inc. (NasdaqGS : YHOO); Yahoo!

P ers onals

IAC In Talk s T o Acquire Y ahoo! P ers onals IAC /I nterA ctiveC orp. reported 10% drop in firs t-quarter revenues of $332 million. I AC sta ted tha t th e company is in ta lks to acquire Y ahoo!

P ersona ls in order to supplement its Match.com bus iness . C E O of the company , B a rry Diller s a id: “W e are very interested. W e’d love to

have Y ahoo! P ers onals and I think there is s ome initia l dis cuss ions about that, whether they’re going away or not is of cours e enormous ly

specula tive. B ut I think , Y ahoo! ha s said that it’s not an abs olute core as set their future and it is core to us. W e’re a leader in the ca tegory .

S o, we’re very aggres sive behind Match and any pos sibilities for increas ing its fu ture money in the world.” Y ahoo! I nc is look ing at dives ting

its non-core properties and IA C is likely to be a buyer of other as sets too.

C hangyou.com L imited

(NasdaqGS :C YOU)

Changyou.com Limited R eports Unaudited C onsolidated


2009; P rov ides E arnings Guidance for the S econd

Quarter of 2009

Changyou.com Limited reported unaudited cons olidated ea rnings res ults for the firs t quarter ended March 31, 2009. For the quarter, the

company's tota l revenues increas ed 6% quarter-over-quarter and 50% yea r-over-year to $61.6 million compared to total revenue of $41

million for the s ame quarter a year ago. T he inc reases were mainly a ttributable to an increas e in TLB B revenues as a result of user base

expans ion and enhanced us er loya lty , a s well a s inc reased revenues from B lade Online ( 'B O') . Opera ting profi t increas ed 12% quarter-over-

quarter and 79% ye ar-over-year to $37. 9 million compared to operating profi t of $21.2 million for the same quarter a yea r ago. N et income

increas ed 15% quarter-over-quarter and 120% year-over-year to $33.5 mil lion compa red to net income of $15. 2 million for the s ame quarter

a yea r ago. N on-GAAP net income increas ed 13% quarter-over-quarter and 100% yea r-over-yea r to $34.4 million compared to net income of

$17.2 mi llion for the s ame quarter a yea r ago. B as ic and fully dil uted ea rnings per A DS were $0.71, compared to $0. 32 in the firs t quarter of

2008. Non-GAAP fully diluted ea rnings per ADS were $0. 72, compared to $0.36 in the firs t quarter of 2008. Income before income tax expens

Figure 7. Key Developments Source. Capital IQ

VAL UAT IO N

MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 bil lion in market capitalization (Figure 8). Sixty-one of the 92 companies have market caps under US$100 mil lion, with 23 under $10 mil lion. Online gaming companies dominate the top of the list.

Market Cap (USD m)

0.00.00.00.00.10.10.30.30.40.50.81.11.22.22.73.24.04.45.05.66.48.18.911.112.313.613.814.215.319.620.420.521.024.324.624.625.326.827.027.628.229.129.233.538.939.040.243.047.048.852.456.562.867.769.772.583.586.386.591.099.4105.8113.3130.5139.4157.3167.5173.4178.2208.1253.7313.1323.5344.7377.2

487.1575.6576.9605.1

897.0997.1

1203.81527.3

1669.71862.2

2020.22116.8

2392.03426.1

3809.7

708.4

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

S ocial Media V enures , Inc .Dibz International, Inc .S NM G lobal Holdings

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

Tota l S port Online ASThe Parent Company

ZipLocal Inc .Financia l Media Group, Inc .

Wynds torm CorporationUnis erve Communications Corp.

DigitalPos t Interactive, Inc .B igs tring Corp.L iveWorld Inc.

V OIS , Inc .B etaw ave Corporation

is eemedia Inc.Magnitude Information S ys tems Inc .

MOKO.mobi L imitedB right Things plc

CornerWorld CorporationSNAP Interactive, Inc .

Worlds .com Inc.Lingo Media Corporation

Quepas a Corp.Y nk K orea Inc .

A cceleriz e New Media , Inc .Ex tens ions , Inc .

Jumbuck Entertainment Pty L td.IA S Energy , Inc .

Fluid Mus ic Canada , Inc .S pectrumDNA , Inc .UOMO Media, Inc

IdeaEdge, Inc .Frogs ter Interactive Pictures AG

LookSmart, L td.B roadWebAs ia Inc .AQ Interactive, Inc .

G rav ity Co. , LtdNorthgate Technologies L imited

S ites earch CorporationDXN Holdings Bhd

Wiz z ard S oftw are CorporationDolphin Digital Media , Inc .

Webzen Inc .NeXplore Corporation

Ngi Group Inc.B eyond Commerce, Inc .

PhotoChannel Netw orks Inc .GeoS entric Oy jEolith Co. L td.

S park Netw orks , Inc .TheS treet.com, Inc .Digita lTow n, Inc .

JumpTV Inc .K aboos e Inc.Moggle, Inc

HanbitS of t, Inc .Cyberplex Inc .

GameOn Co Ltd.A ctoz S oft Co. , L td.

Openw ave S ys tems Inc.Y edangOnline Corp.

Tree.Com, Inc .DADA S pACDC Corp.

GungHo Online Enterta inment, Inc .OAO RBC Information S ys tems

Gamania Digital Entertainment Co. , L td.X ING AG

The9 L imitedS K Communications Co. , L td.

S hutterf ly , Inc .G igaMedia L td.

NetDragon WebS of t, Inc .NEOWIZ Games CorporationChines e Gamer International

K ings of t Co. L td.United Online Inc .

Mix i, Inc .V a lueClick Inc .

Perfect World Co. , L td.G ree, Inc .

Changyou.com L imitedOpen Text Corp.

Giant Interactive Group, Inc .Modern Times Group Mtg AB

S ohu.com Inc.IAC/InterA ctiveCorp.

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

Tencent Holdings L td.

Figure 8. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 5.2x: The overall average TEV/Revenue (LTM) multiple for our group is 5.2x (up from 4.7x last week) (Figure 9). However, this is skewed by Gree (3633-TSE) at 37.9x and Dolphin Digital Media Inc. (DPDM-OTCBB) at 37.2x. The median is only 1.9x. Note that we exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.00.00.00.00.10.10.20.20.20.40.40.50.60.60.60.80.80.90.91.01.11.11.11.21.21.21.31.31.41.51.71.8

1.91.92.02.22.22.42.62.72.83.13.43.5

3.84.04.24.44.64.84.85.05.0

6.06.06.98.19.1

17.2

22.1

25.4

30.6

33.6

37.237.9

Average, 5.2

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Social Media Venures, Inc.

Openwave Systems Inc.

China Gateway Corporation

OAO RBC Information Systems

LiveWorld Inc.

Uniserve Communications Corp.

Shanda Interactive Entertainment Ltd.

Northgate Technologies Limited

The Parent Company

IAC/InterActiveCorp.

GameOn Co Ltd.

CDC Corp.

Tree.Com, Inc.

ZipLocal Inc.

DXN Holdings Bhd

Jumbuck Entertainment Pty Ltd.

DADA SpA

Ynk Korea Inc.

Actoz Soft Co., Ltd.

Spark Networks, Inc.

SNM Global Holdings

United Online Inc.

Kaboose Inc.

Shutterfly, Inc.

HanbitSoft, Inc.

Gamania Digital Entertainment Co.,

GungHo Online Entertainment, Inc.

ValueClick Inc.

GigaMedia Ltd.

Modern Times Group Mtg AB

Cyberplex Inc.

iseemedia Inc.

Fluid Music Canada, Inc.

SK Communications Co., Ltd.

YedangOnline Corp.

SNAP Interactive, Inc.

Open Text Corp.

NEOWIZ Games Corporation

Eolith Co. Ltd.

PhotoChannel Networks Inc.

NetDragon WebSoft, Inc.

XING AG

Lingo Media Corporation

MOKO.mobi Limited

Sohu.com Inc.

JumpTV Inc.

Kingsoft Co. Ltd.

Frogster Interactive Pictures AG

Total Sport Online AS

Accelerize New Media, Inc.

Wizzard Software Corporation

Mixi, Inc.

DigitalPost Interactive, Inc.

CornerWorld Corporation

Changyou.com Limited

GeoSentric Oyj

Associated Media Holdings Inc.

Chinese Gamer International

Tencent Holdings Ltd.

Bright Things plc

Beyond Commerce, Inc.

Bigstring Corp.

UOMO Media, Inc

Dolphin Digital Media, Inc.

Gree, Inc.

Figure 9. TEV/Revenue Ranking Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (20), trading at an average multiple of 18.1x (up from 12.4x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 6.0x revenue (up from 4.9x last week) (Figure 11). Eleven of the companies are Canadian (average 5.1x revenue).

Average TEV/LTM Revenue - By Exchange

0.20.60.6

0.81.31.51.61.61.71.72.12.22.93.84.6

5.26.98.1

14.4

18.1

22.1

0.0

5.0

10.0

15.0

20.0

25.0

AIM

OT

CB

B

TS

E

SE

HK

HLS

E

GT

SM

OT

CN

O

XT

RA

AM

EX

TS

X

AS

X

TS

XV

KO

SE

NasdaqG

S

OT

CP

K

OM

OS

E

CM

KLS

E

NasdaqG

M

BS

E

1 20 5 3 1 2 1 2 2 4 2 5 7 14 10 1 1 1 1 5 1

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.20.6 0.5

0.81.51.72.13.8

3.94.65.15.76.06.9

11.1

22.1

0.0

5.0

10.0

15.0

20.0

25.0

Unite

d

Kin

gdom

Japan

Fin

land

Unite

d

Sta

tes

Chin

a

Canada

Norw

ay

Taiw

an

Germ

any

Austr

alia

South

Kore

a

Sw

eden

Italy

Mala

ysia

Hong

Kong

India

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

(x)

# Companies

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

TEV/EBITDA (LTM) averages 9.4x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 9.4x LTM EBITDA (sl ightly down from 9.7x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 35.3x multiple (Figure 12). Twelve of the companies have EBITDA multiples under 7x. The median multiple is 8.1x (vs. 8.8x last week).

TEV/LTM EB ITDA (x)

0.3 0.4 1.2 1.7 2.1

4.6 4.7 4.7 5.0 5.0 5.8 6.17.0 7.1 7.3 7.4 7.4

8.7 8.7 8.9 9.0 9.1 9.7 9.8 9.910.9 11.2 11.9

13.2

16.2

19.8 20.6

29.5

35.3

Average, 9.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

OAO RBC Information Systems



GameOn Co Ltd.




DXN Holdings Bhd

DADA SpA

United Online Inc.

GigaMedia Ltd.



GungHo Online Entertainment, Inc.

CDC Corp.

ValueClick Inc.

Gamania Digital Entertainment Co., Ltd.

Open Text Corp.

Sohu.com Inc.


YedangOnline Corp.

Shutterfly, Inc.


XING AG


Kingsoft Co. Ltd.

Kaboose Inc.


Mixi, Inc.


SK Communications Co., Ltd.

Cyberplex Inc.

Uniserve Communications Corp.


Figure 12. TEV/EBITDA Ranking Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (20), trading at an average multiple of 7.0x (up from 6.1x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 7.5x EBITDA (Figure 14). Eleven of the companies are Canadian (average 17.5x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.31.22.14.64.75.0

7.07.17.47.49.79.810.611.815.9

17.4

29.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

TS

XV

SE

HK

TS

X

GT

SM

KO

SE

XT

RA

OM

TS

E

NasdaqG

S

OS

E

OT

CB

B

CM

KLS

E

AM

EX

AS

X

BS

E

RT

S

5 3 4 2 7 2 1 5 14 1 20 1 1 2 2 1 1

(x)

# Companies

Average TEV/LTM EBITDA - By Country

2.10.3

1.2

4.75.0

7.37.37.59.79.89.810.6

11.9

17.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Canada

Ch

ina

South

Kore

a

Taiw

an

Germ

any

Sw

eden

Unite

d

Sta

tes

Japan

Hong

Kong

Italy

Mala

ysia

Austr

alia

India

Rus

sia

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

(x)

# Companies

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

P/E (LTM) averages 17.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 14.1x LTM EPS (down from 17.0x last week), led by Tencent Holdings Ltd. Inc’s (700-SEHK) 47.1x multiple (Figure 15). Eleven of the companies have P/E multiples under 10x. The median is just 11.9x.

P/E LTM (x)

0.8 1.7 1.8 1.8 2.5 2.9

5.5 6.0 6.58.0

9.210.6 11.0 11.2 11.7 11.9 11.9 12.4

13.614.9 15.3

17.119.0

20.4 20.622.3

26.1

28.730.9

33.7

47.1

Average, 14.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

The9 Limited

Perfect World Co., Ltd.


Giant Interactive Group, Inc.

Netease.com Inc.


DXN Holdings Bhd



DADA SpA

GameOn Co Ltd.


GigaMedia Ltd.


Ngi Group Inc.

YedangOnline Corp.

Sohu.com Inc.



Kingsoft Co. Ltd.


Cyberplex Inc.

Gamania Digital Entertainment Co., Ltd.


XING AG


Open Text Corp.


Worlds.com Inc.

Mixi, Inc.


Figure 15. P/E Ranking Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (21), trading at an average multiple of 6.4x. On a geographic basis, the United States has the most companies (40), trading at an average of 31.0x earnings (Figure 17). Eleven of the companies are Canadian (average 25.1x EPS).

Average P/E - By Exchange

4.95.16.47.48.713.115.8

16.817.319.1

21.223.324.8

68.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

NasdaqG

M

GT

SM

SE

HK

XT

RA

TS

E

NasdaqG

S

KO

SE

TS

X

AM

EX

CM

AS

X

OT

CB

B

OM

KLS

E

5 2 3 2 5 14 7 4 2 1 2 21 1 1

(x)

# Companies

Average P/E - By Country

4.95.1

7.48.710.8

16.819.1

20.121.225.1

31.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Un

ited

Sta

tes

Can

ada

Germ

any

Taiw

an

Ja

pan

Sou

th

Ko

rea

Chin

a

Italy

Austr

alia

Sw

ede

n

Mala

ysia

40 11 2 3 6 9 10 1 2 1 1

(x)

# Companies

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

UP CO MI NG EVE NTS

Earnings Calendar

Company Date & T ime Quarter Conf Call Details

C DC C orp. (N asdaqG S : CH IN . A) T uesday , May 12, 2009 8: 30 AM (E DT ) Q 1 2009 888-603-6873

P hotoC hannel Networks I nc . (TS XV : PN) W ednes day, May 13, 2009 4:30 PM (E DT ) Q 2 2009 888-300-8196

S park Network s, I nc . (AME X : LOV ) T hursday , May 14, 2009 1: 30 PM (PDT ) Q 1 2009 877-723-9518

P erfect W orld C o., L td. (NasdaqGS :PW R D) Monday, May 18, 2009 8: 00 AM (E DT ) Q 1 2009 866-519-4004

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

Figure 18. Earnings Calendar Source. Company reports

Comparable Company Analys is > Web 2 .0

P rice Performance

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

Acce le rize New Media, Inc. USD ACL Z OTC BB 13.8 0.5 0 13.6% 56.3% 42 .9% 25 .0% -33 .3% -35. 9%

Actoz S of t C o., L td. KR W A052790 KO S E 99.4 14,400.0 0 0.7% 0.3% 16 .1% 50 .8% 62.9% -11. 1%

AQ Inte ractive , Inc. J PY 3838 T S E 26.8 48,000.0 0 2.2% 8.1% 43 .3% 12 .9% -78 .3% -79. 6%As socia ted Media Holdings Inc. USD A SMH OTC PK 0 .1 0.0 0 0.0% 7.1% -70.0% -81.3% 36.4% -97. 0%

B igstring Corp. USD B SGC OTC BB 1 .2 0.0 2 4.8% 57.1% 25 .7% -4.3% -85 .4% -89. 0%

Be tawave Corpora tion USD B W AV OTC BB 3 .2 0.1 1 -0.9% -18. 5% -45.0% -38.9% -60 .7% -73. 8%

Beyond Commerce, Inc. USD B YOC OTC BB 43.0 1.0 4 -21. 8% -11. 9% 30 .0% -30.7% -62 .2% -68. 5%Bright T hings plc GBP A IM:B GT AI M 5 .6 0.0 2 -16. 7% 27.6% -4 .8% 57 .6% -34 .0% -46. 4%

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

C DC C orp. USD CH IN .A Nasda qGS 157.3 1.4 7 11.4% 21.5% 56 .4% 70 .9% -60 .1% -61. 3%

C ha ngyou. com Limited USD C YOU Nasda qGS 1,5 27. 3 29.8 0 -8.6% 19.2% NM NM NM -21. 0%C hina Gatewa y C orpora tion USD CGWY OTC PK 0 .0 0.0 0 100. 0% 100.0% 0 .0% -86.7% -96 .7% -95. 6%

C hine se G amer International TW D G TS M:3083 GT SM 575.6 225.0 0 0.0% 17.2% 95 .7% 172.1% 101. 8% -5.5%

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

C yberplex Inc. C AD T S X:CX T S X 86.5 1.8 7 8.7% 67.0% 419.4% 392.1% 133. 8% -6.0%

DADA S pA EUR CM:DA CM 139.4 6.3 1 -8.2% 47.3% 2 .7% -11.9% -59 .0% -61. 0%DXN Holdings B hd MYR DXN KL S E 29.1 0.4 4 12.8% 37.5% 23 .9% 22 .2% -12 .0% -12. 9%

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

D igitalPost Inte ra ctive , Inc. USD DGLP OTC BB 1 .1 0.0 2 -11. 8% 0.0% 50 .0% -40.0% -92 .5% -94. 6%

D igitalT own, Inc. USD DGTW OTC BB 67.7 2.5 0 6.4% 0.0% 66 .7% 0 .0% -16 .7% -59. 0%Dolphin Digital Media, Inc. USD DPDM OTC BB 33.5 0.6 8 23.6% 4.6% 15 .3% -28.4% NM -39. 8%

E olith C o. L td. KR W A041060 KO S E 52.4 900.0 0 -1.1% 47.5% 59 .3% 53 .8% -2. 2% -13. 9%

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

F inancia l Media G roup, Inc. USD FNGP OTC BB 0 .4 0.0 1 51.5% -28. 6% -66.7% -98.6% -99 .1% -99. 5%F luid Mus ic Ca nada, Inc. C AD T S X:FMN T S X 20.4 0.4 5 -18. 2% 36.4% -19.6% 28 .6% NM -77. 9%

F rogste r Interactive P icture s AG EUR F R G XT R A 24.6 7.6 8 -11. 7% -0.5% 72 .6% 65 .5% 60.3% -22. 4%

Gama nia Digital E ntertainment C o., L td. TW D 6180 GT SM 178.2 38.6 0 9.0% 11.6% 71 .2% 177.7% 11.6% -4.2%

GameOn C o L td. J PY 3812 T S E 91.0 91,800.0 0 -5.0% -0.2% -20.2% -24.7% -35 .4% -43. 9%GeoS entr ic O yj E UR G EO1V HLS E 48.8 0.0 4 0.0% 33.3% 33 .3% 0 .0% -33 .3% -42. 9%

G iant Intera ctive G roup, Inc. USD G A NYS E 1,8 62. 2 8.2 4 0.0% 11.7% 35 .1% 37 .8% -47 .2% -49. 4%

G igaMedia Ltd. USD G IGM Nasda qGS 344.7 6.3 8 3.6% 10.8% -11.9% 22 .6% -66 .1% -67. 9%

G ravity C o., L td USD G RV Y Nasda qGM 27.0 0.9 7 -1.0% -1.0% 38 .6% 43 .1% -29 .7% -51. 3%G ree, Inc. J PY T S E :3632 T S E 1,2 03. 8 5,260.0 0 -4.7% -8.7% 0 .4% NM NM -16. 5%

GungHo O nline E ntertainment, Inc. J PY 3765 OS E 167.5 142,600.0 0 3.6% 17.9% 38 .4% 38 .6% -64 .2% -67. 2%

HanbitS oft, Inc. KR W A047080 KO S E 86.3 4,855.0 0 7.9% 4.5% 39 .3% 68 .6% -8. 6% -30. 7%

IAC /InterActiveC orp. USD I ACI Nasda qGS 2,3 92. 0 15.8 5 -1.1% -4.0% 9 .2% 1 .0% -66 .8% -68. 6%IAS E nergy, Inc. USD I AS C .A OTC BB 19.6 0.2 8 3.7% 300.0% 1020.0% 250.0% 30.2% -20. 0%

IdeaE dge, Inc. USD O TC BB :IDAE OTC BB 24.3 0.5 7 34.1% 46.2% 23 .9% -70.0% -32 .1% -79. 9%

is eemedia Inc. C AD I E E T S XV 4 .0 0.0 9 0.0% -18. 2% -18.2% 12 .5% -62 .5% -74. 3%

J umbuck E ntertainment P ty Ltd. AUD A S X:JMB AS X 15.3 0.4 1 -12. 9% -15. 6% 1 .3% -4.7% -32 .5% -38. 2%J umpT V Inc. C AD T S X:J T V T S X 69.7 0.7 1 9.2% 31.5% 42 .0% 18 .3% 4.4% -44. 5%

Ka boose Inc. C AD T S X:KAB T S X 72.5 0.6 0 0.0% 3.4% 57 .9% 50 .0% -35 .5% -52. 0%

K ingsoft Co. Ltd. HKD 3888 S E HK 576.9 4.1 4 10.4% 27.8% 39 .4% 89 .9% 7.5% -11. 9%

Lingo Media Corporation C AD T S XV :LM T S XV 11.1 1.0 0 13.6% -16. 0% -4 .8% -9.9% -47 .4% -50. 7%LiveWorld Inc. USD L VWD OTC PK 2 .2 0.0 7 -46. 2% -46. 2% 75 .0% 16 .7% -80 .0% -82. 9%

LookSmart, Ltd. USD L OOK Nasda qGM 24.6 1.4 4 12.2% 29.7% 4 .3% -13.8% -65 .9% -69. 4%

Magnitude Information S ys tems Inc. USD MAGY OTC BB 4 .4 0.0 1 -33. 3% -33. 3% -66.7% -16.7% -44 .4% -66. 7%

Mixi, Inc. J PY 2121 T S E 708.4 450,000.0 0 -0.7% 11.4% -3 .0% -33.9% -41 .3% -52. 7%Mode rn Times G roup Mtg AB S E K MTG B OM 2,020. 2 237.5 0 8.0% 52.7% 67 .3% 51 .8% -43 .9% -47. 2%

Moggle , Inc USD MMOG OTC BB 83.5 2.3 0 15.0% 15.0% 53 .3% NM NM 0.0%

MOKO.mobi L imited AUD MKB AS X 5 .0 0.0 8 1.4% -16. 7% 87 .5% 87 .5% 50.0% -25. 0%

NEOW IZ Games C orpora tion KR W A095660 KO S E 487.1 62,400.0 0 8.5% -1.0% 115.2% 352.2% 86.3% -15. 0%NetDragon W ebS oft, Inc. HKD 777 S E HK 377.2 5.5 3 2.4% 32.9% 84 .9% 116.9% -47 .8% -57. 5%

Nete ase.com I nc. USD NT E S Nasda qGS 3,8 09. 7 30.9 6 0.7% 8.8% 57 .2% 56 .6% 24.0% -5.2%

NeXplore Corpora tion USD NXPC OTC PK 39.0 0.7 0 55.6% 7.7% -26.3% -26.3% NM -51. 7%

Ngi G roup Inc. J PY 2497 T S E 40.2 31,700.0 0 -13. 9% 11.8% 15 .4% -59.0% -78 .6% -81. 0%

Northgate Te chnologies L imited INR 590057 BS E 27.6 39.1 5 -4.5% -5.3% -5 .7% -37.4% -90 .2% -90. 7%Open T ext Corp. USD O TE X Nasda qGS 1,6 69. 7 31.7 3 -2.5% -9.3% -10.8% 14 .3% -16 .1% -18. 8%

Openwave S ys tems Inc. USD O PWV Nasda qGS 105.8 1.2 7 0.8% -0.8% 62 .8% 122.8% -36 .2% -41. 2%

Pe rfect W orld C o. , Ltd. USD P W RD Nasda qGS 997.1 18.9 0 2.8% 13.9% 25 .7% 10 .1% -39 .6% -40. 7%

PhotoChannel Network s Inc. C AD T S XV :PN T S XV 47.0 1.5 9 6.0% 0.6% -1 .2% -0.6% -55 .6% -61. 7%Quepa sa C orp. USD Q PSA Nasda qCM 12.3 0.9 7 7.8% 3.2% -39.4% -57.1% -63 .3% -72. 0%

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

S handa Interactive E ntertainment L td. USD S NDA Nasda qGS 3,4 26. 1 49.3 8 -5.8% 6.4% 64 .1% 112.3% 33.6% -8.3%

S hutte rf ly, Inc. USD S F LY Nasda qGS 323.5 12.8 5 -2.1% 22.0% 55 .9% 95 .0% -1. 6% -14. 8%S K C ommunications Co., Ltd. KR W A066270 KO S E 313.1 9,390.0 0 -2.7% -7.5% 20 .4% 95 .6% -34 .3% -52. 3%

SNAP Inte ra ctive , Inc. USD S T V I OT C BB 8 .1 0.7 5 15.4% 0.0% -25.0% 66 .7% -5. 1% -30. 6%

SNM G lobal Holdings USD S NMN OTC PK 0 .0 0.0 0 -25. 0% 200.0% 0 .0% -98.3% -99 .9% -99. 9%

S ocia l Media Venures , Inc. USD S MVI OT C PK 0 .0 0.0 1 -93. 3% -99. 2% -99.2% -99.7% NM -99. 8%S ohu. com Inc. USD S OHU Nasda qGS 2,1 16. 8 55.3 2 -3.9% 15.0% 20 .2% 35 .0% -33 .8% -39. 5%

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

S park Networks , Inc. USD L OV AMEX 56.5 2.7 5 3.8% 25.6% 12 .2% -2.1% -38 .6% -40. 9%

S pectrumDNA, Inc. USD S PXA OTC BB 20.5 0.4 2 68.0% 180.0% 320.0% 75 .0% NM -30. 0%T encent Holdings L td. HKD 700 S E HK 16, 568 .2 71.3 0 -3.9% 15.4% 51 .7% 39 .8% 6.5% -4.9%

T he Parent C ompany USD K IDS .Q OTC PK 0 .3 0.0 1 0.0% -28. 6% -58.3% -98.6% -99 .4% -99. 6%

T he9 L imited USD NC TY Nasda qGS 253.7 9.4 6 -2.1% -32. 1% -36.0% -21.4% -62 .5% -66. 8%

T heS treet.com, Inc. USD T S CM Nasda qGM 62.8 2.0 5 -4.2% 0.5% -25.5% -35.1% -73 .8% -74. 7%T otal S port Online A S NOK TOS O OTC NO 0 .1 0.0 3 0.0% -25. 0% -25.0% -40.0% -70 .0% -70. 0%

T ree.C om, Inc. USD T R E E Nasda qGM 130.5 12.0 9 27.5% 119.4% 200.7% 437.3% NM 2.4%

Unis erve C ommunications Corp. C AD T S XV :US S T S XV 0 .8 0.0 4 0.0% 0.0% -50.0% -77.8% -89 .5% -88. 6%

United Online Inc. USD UNTD Nasda qGS 605.1 7.2 4 27.5% 35.8% 24 .2% 7 .7% -39 .7% -42. 1%UOMO Media , Inc USD UOMO OTC BB 21.0 0.2 5 75.0% 122.7% 206.3% 58 .1% -44 .3% -69. 4%

Va lueC lick Inc. USD V CL K Nasda qGS 897.0 10.3 4 -6.0% 2.7% 56 .9% 76 .5% -49 .1% -50. 1%

VO IS , Inc. USD V OIS OTC BB 2 .7 0.3 2 6.7% 39.1% -57.3% -57.3% NM -94. 3%

W ebzen Inc. USD W ZEN Nasda qGM 38.9 3.2 8 14.3% 26.2% 123.1% 248.9% 17.1% -26. 3%W izza rd S of twa re Corpora tion USD W ZE AMEX 29.2 0.6 2 0.2% -13. 9% -4 .6% -18.4% -73 .4% -73. 6%

W orlds .com Inc. USD WDDD OTC BB 8 .9 0.1 7 0.0% -15. 0% -22.7% 6 .3% -46 .9% -57. 5%

W ynds torm C orporation USD W YND OTC BB 0 .5 0.0 3 -66. 7% -66. 7% -76.0% -85.0% -92 .5% -96. 5%

XING AG EUR O 1BC XT R A 208.1 28.9 5 -3.2% 2.4% -6 .6% 16 .5% -36 .4% -37. 9%YedangOnline Corp. KR W A052770 KO S E 113.3 8,900.0 0 1.9% -8.2% 30 .9% 47 .1% -25 .2% -29. 1%

Ynk Korea Inc. KR W A023770 KO S E 13.6 6,850.0 0 21.9% 35.4% 37 .0% 15 .1% -50 .7% -54. 0%

ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 0.0% -66. 7% -75.0% -75.0% -96 .4% -97. 1%

H igh 100. 0% 300.0% 1020.0% 437.3% 133. 8% 2.4%

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

Average 500.3 1.1% 16.7% 40.7% 26.7% -35.8% -53.1%

Median 0.0% 6.4% 22 .1% 12 .7% -43 .9% -52. 2%

Figure 19. Price Performance Source. Capital IQ

Comparable C ompany Analys is > Web 2.0V aluation Multiples

C ompany Name Sector Country

Primary

E xchange Ticker

USD Market

Cap ($m)

TEV/LTM

R evenue

TEV/ NTM

R evenue

TEV/LTM

E BITDA

TE V/NTM

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

Acce le rize New Media, Inc. D irect Marketing Unite d S tates OT C BB AC LZ 13. 8 4.8 x - - - - - -

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

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

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

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

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

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

C DC C orp. Gaming Hong K ong Nasda qGS C HIN .A 157. 3 0.5 x 0.5x 7.3 x 6.6x - 2 4.5 x -

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

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

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

C yberplex Inc. Advertis ing C anada T S X T SX:C X 86. 5 1.7 x - 20.6 x - 17 .1x - 1 8.3x

DADA S pA S ocia l Ne tworking Italy CM CM:DA 139. 4 0.8 x - 5.0 x - 8. 0x - -DXN Holdings B hd S ocia l Ne tworking Malays ia KL S E DXN 29. 1 0.6 x - 4.7 x - 5. 5x - 0 .6x

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

D igitalPost Inte ra ctive , Inc. C ontent Unite d S tates OT C BB DGL P 1. 1 5.0 x - - - - - -

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

E olith C o. L td. Gaming S outh Kore a KOS E A041060 52. 4 2.6 x - - - - - -

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

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

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

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

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

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

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

G ravity C o. , L td Gaming S outh Kore a Nasda qGM GR VY 27. 0 - - - - - - -G ree, Inc. S ocia l Ne tworking J a pan T S E T S E :3 632 1,2 03. 8 37.9 x - - - - - 1 8.4x

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

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

IAC /InterActiveC orp. Media Unite d S tates Nasda qGS IAC I 2,3 92. 0 0.4 x 0.4x 11.9 x 3.2x 20 .4x 3 1.1 x 1 .1xIAS E nergy, Inc. V ideo C anada OT C BB IA S C .A 19. 6 - - - - - - -

IdeaE dge, Inc. S ocia l Ne tworking Unite d S tates OT C BB OTC BB :IDA E 24. 3 - - - - - - 1 7.7x

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

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

Ka boose Inc. C ontent C anada T S X TS X:KAB 72. 5 1.1 x 1.0x 11.2 x 6.3x - - -

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

Lingo Media Corporation Le arning C anada T S XV TS XV :LM 11. 1 3.4 x - - - - - -LiveWorld Inc. S ocia l Ne tworking Unite d S tates OT C PK LVWD 2. 2 0.1 x - - - - - 0 .9x

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

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

Mixi, Inc. S ocia l Ne tworking J a pan T S E 2121 708. 4 5.0 x - 13.2 x - 33 .7x - 5 .5xMode rn Times G roup Mtg AB Media S weden OM MTG B 2,0 20. 2 1.5 x 1.5x 9.7 x 1 1.5 x 6. 0x 1 3.9 x -

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

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

NEOW IZ Games C orpora tion Gaming S outh Kore a KOS E A095660 487. 1 2.4 x - 8.9 x - 28 .7x - 1 4.5xNetDragon W ebS oft , Inc. Gaming C hina S EHK 777 377. 2 2.8 x - 6.1 x - 12 .4x - 2 .0x

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

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

Ngi G roup Inc. Media J a pan T S E 2497 40. 2 - - - - 11 .7x - 0 .6x

Northgate Te chnologies L imited Direct Marketing India BS E 590057 27. 6 0.2 x - 1.2 x - 1. 8x - -Open T e xt Corp. C ollaboration C anada Nasda qGS O TE X 1,6 69. 7 2.2 x 2.1x 8.7 x 7.6x 26 .1x 1 2.1 x -

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

Pe rf ect W orld C o., Ltd. Gaming C hina Nasda qGS PWR D 997. 1 - - - - 1. 7x 9.2x 0 .5x

PhotoChannel Network s Inc. D igital Imaging C anada T S XV T S XV :PN 47. 0 2.7 x 1.8x - 5.8x - 2 4.5 x 9 .8xQuepa s a C orp. S ocia l Ne tworking Unite d S tates Nasda qCM QP SA 12. 3 - - - - - - 9 .2x

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

S handa Interactive E ntertainment L td. Gaming C hina Nasda qGS SNDA 3,4 26. 1 0.2 x 0.9x 0.4 x 2.0x 2. 9x 1 5.8 x 1 .3x

S hutte rf ly, Inc. D igital Imaging Unite d S tates Nasda qGS S FL Y 323. 5 1.2 x 1.2x 9.1 x 7.0x - 9 1.1 x 1 .9xS K C ommunications Co., Ltd. S earch S outh Kore a KOS E A066270 313. 1 1.9 x - 19.8 x - - - -

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

S NM Global Holdings Media Unite d S tates OT C PK SNMN 0. 0 1.1 x - - - - - -

S ocia l Media Venures , Inc. S ocia l Ne tworking Unite d S tates OT C PK SMV I 0. 0 0.0 x - - - - - -S ohu. com Inc. Gaming C hina Nasda qGS SOHU 2,1 16. 8 3.8 x 3.3x 8.7 x 7.6x 11 .9x 1 4.0 x 5 .7x

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

S park Networks , Inc. S ocia l Ne tworking Unite d S tates AMEX L OV 56. 5 1.0 x - 4.6 x - 13 .6x - -

S pectrumDNA, Inc. Media Unite d S tates OT C BB SPXA 20. 5 - - - - - - 3 1.0xT encent Holdings L td. Porta l C hina S E HK 700 16,5 68. 2 17.2 x - 35.3 x - 47 .1x - 1 9.2x

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

T he 9 L imited Gaming C hina Nasda qGS NC T Y 253. 7 - - - - 0. 8x 1 0.3 x 0 .1x

T he S treet.com, Inc. Media Unite d S tates Nasda qGM T S CM 62. 8 - - - - - - 0 .8xT otal S port Online A S Media Norway OT C NO TOSO 0. 1 4.6 x - - - - - -

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

Unis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :US S 0. 8 0.1 x - 29.5 x - - - -

United Online Inc. Media Unite d S tates Nasda qGS UNTD 605. 1 1.1 x 0.9x 5.0 x 3.6x - 1 0.0 x -UOMO Media , Inc Media C anada OT C BB UOMO 21. 0 33.6 x - - - - - -

Va lueC lick Inc. Media Unite d S tates Nasda qGS VC LK 897. 0 1.3 x 1.5x 7.4 x 5.8x - 1 6.6 x 7 .3x

VO IS , Inc. S ocia l Ne tworking Unite d S tates OT C BB VOIS 2. 7 - - - - - - 6 .0x

W ebzen Inc. Gaming S outh Kore a Nasda qGM WZEN 38. 9 - - - - - - 0 .0xW izza rd S of twa re Corpora tion Podcas ting Unite d S tates AMEX WZE 29. 2 4.8 x - - - - - -

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

W yndstorm C orporation C ontent Unite d S tates OT C BB WYND 0. 5 - - - - - - -

XING AG S ocia l Ne tworking G ermany XT RA O 1BC 2 08. 1 3.1 x - 9.8 x - 20 .6x - 5 .3xYedangOnline Corp. Gaming S outh Kore a KOS E A052770 113. 3 2.0 x - 9.0 x - 11 .9x - 5 .5x

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

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

H igh 16,5 68. 2 37.9 x 3.3x 35.3 x 1 1.5 x 47 .1x 9 1.1 x 4 0.1x

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

Average 500.3 5.2x 1.2x 9.4x 5.7x 14.1x 20.9x 5.9x

Median 39. 6 1.9 x 1.2x 8.1 x 6.4x 11 .9x 1 4.7 x 2 .3x

Figure 20. Valuation Comparison Source. Capital IQ

Comparable C ompany Analys is > Web 2.0

Summary by Country

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

United S tates 40 C hina 31, 515.1 China 3,151. 5 United S tates 3, 791. 9 C hina 1,811. 2 C hina 40. 6%

C anada 11 United S tates 5, 092.2 S weden 2,020. 2 C hina 3, 606. 5 S weden 266. 2 Aus tra l ia 37. 2%

C hina 10 J apan 2, 237.6 Japan 372. 9 S weden 1, 737. 6 United S ta tes 240. 7 T aiwan 32. 3%

S outh K orea 9 S weden 2, 020.2 Ta iwan 366. 2 C anada 967. 3 C anada 190. 3 J apan 26. 1%

J apan 6 C anada 2, 002.2 Canada 182. 0 S outh K orea 655. 4 J apan 132. 9 India 17. 6%

T a iwan 3 S outh K orea 1, 231.0 R us sia 173. 4 J apan 504. 9 T aiwan 98. 4 I ta ly 16. 0%

A ustra lia 2 T aiwan 1, 098.5 Hong K ong 157. 3 Hong K ong 409. 1 S outh K orea 83. 2 S weden 15. 3%

Germany 2 G ermany 232.7 Ita ly 139. 4 T aiwan 372. 6 I ta ly 36. 9 Malays ia 13. 3%

Norway 1 R uss ia 173.4 S outh K orea 136. 8 I ta ly 231. 1 Hong K ong 25. 5 R uss ia 13. 1%

Hong K ong 1 Hong K ong 157.3 United S tates 127. 3 R uss ia 146. 9 India 24. 0 Hong K ong 6.2%

F inland 1 I ta ly 139.4 G ermany 116. 3 India 136. 2 R uss ia 19. 2 C anada -2. 9%

I ta ly 1 F inland 48.8 Finland 48. 8 Malays ia 79. 0 G ermany 11. 9 Norway -6. 2%

United K ingdom 1 Malays ia 29.1 Malaysia 29. 1 G ermany 53. 1 Malays ia 10. 5 S outh K orea -7. 4%

India 1 India 27.6 India 27. 6 Aus tra l ia 14. 8 Aus tra lia 2. 8 United S tates -10.2%

S weden 1 Aus tra lia 20.3 Austra lia 10. 2 F inland 6. 0 Norway -1. 1 G ermany -19.1%

R us sia 1 United K ingdom 5.6 United K ingdom 5. 6 Norway 2. 1 United K ingdom -1. 7 United K ingdom N/A

Malays ia 1 Norway 0.1 Norway 0. 1 United K ingdom 0. 2 F inland -13. 4 F inland N/A

Grand Total 92 Grand Total 46,031.1 Grand Total 500.3 Grand Total 12,714.7 Grand Total 2,937.5 Grand Total 7.5%

Figure 21. Comparison by Country Source. Capital IQ

Comparable C ompany Analys is > Web 2.0

Summary by Exc hange

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

OT C BB 20 NasdaqGS 18, 625.8 S E HK 5,840. 7 OM 1, 737. 6 NasdaqGS 1,690. 4 NY S E 61. 9%

Nas daqGS 14 S E HK 17, 522.2 OM 2,020. 2 NasdaqGS 480. 1 S E HK 599. 0 AS X 37. 2%

OT C PK 10 T S E 2, 070.1 NY S E 1,862. 2 S E HK 418. 4 OM 266. 2 G T SM 36. 3%

K OS E 7 OM 2, 020.2 Nas daqGS 1,330. 4 NY S E 233. 6 NY S E 144. 6 T S E 27. 7%

T S E 5 NYS E 1, 862.2 TS E 414. 0 C M 231. 1 T S E 112. 4 S E HK 24. 1%

Nas daqGM 5 KOS E 1, 165.2 G TS M 376. 9 R TS 146. 9 K OS E 80. 1 OT CB B 21. 5%

T S XV 5 GT S M 753.8 R T S 173. 4 B S E 136. 2 G T S M 52. 4 NasdaqGS 20. 3%

T S X 4 OT CB B 392.0 OS E 167. 5 OS E 115. 3 C M 36. 9 OS E 17. 8%

S E HK 3 NasdaqGM 283.8 KOS E 166. 5 G T S M 91. 1 B S E 24. 0 B S E 17. 6%

AME X 2 T S X 249.0 CM 139. 4 K OS E 84. 7 OS E 20. 6 C M 16. 0%

XT R A 2 XT R A 232.7 XT R A 116. 3 NasdaqGM 81. 2 R TS 19. 2 OM 15. 3%

A S X 2 R TS 173.4 TS X 62. 3 K LS E 79. 0 XTR A 11. 9 K LS E 13. 3%

GT SM 2 OS E 167.5 Nas daqGM 56. 8 T S E 77. 9 K LS E 10. 5 R TS 13. 1%

OT C NO 1 C M 139.4 HLS E 48. 8 T S X 34. 5 AME X 6. 3 K OS E 3.3%

HLS E 1 AME X 85.8 AME X 42. 9 AME X 31. 7 AS X 2. 8 OT CNO -6. 2%

NY S E 1 OT CP K 81.1 K LS E 29. 1 XT RA 26. 5 OT CNO -1. 1 T S XV -6. 4%

C M 1 T S XV 63.2 B S E 27. 6 OT CPK 19. 0 AIM -1. 7 T S X -14.8%

B S E 1 HLS E 48.8 OTC B B 19. 6 T S XV 10. 1 T S X -6. 5 XT R A -19.1%

Nas daqCM 1 K LS E 29.1 TS XV 12. 6 AS X 7. 4 T S XV -10. 3 NasdaqGM -27.1%

OS E 1 B S E 27.6 Nas daqCM 12. 3 HLS E 6. 0 NasdaqC M -11. 4 OT CP K -33.0%

A IM 1 AS X 20.3 AS X 10. 2 OT CNO 2. 1 NasdaqGM -12. 3 AIM N/A

OM 1 NasdaqC M 12.3 OTC P K 8. 1 OT CBB 1. 7 H LS E -13. 4 AME X N/A

R TS 1 AIM 5.6 AIM 5. 6 AIM 0. 2 OT CP K -33. 1 H LS E N/A

K LS E 1 OT CNO 0.1 OTC NO 0. 1 NasdaqC M 0. 1 OT CB B -49. 9 NasdaqC M N/A

Grand Total 92 Grand Total 46,031.1 Grand Total 500.3 Grand Total 12,714.7 Grand Total 2,937.5 Grand Total 7.5%

Figure 22. Comparison by Exchange Source. Capital IQ

Financing - Last Three Months (US$ m)

Month Company Name C ountry Angel/S eed Debt financ ing PIPE Series A S eries B Series C S eries D S eries E Grand Total

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

Vidyo US A 15.0 15. 0

Buzznet US A 12.5 12. 5

LendingClub US A 12. 0 12. 0

SendMe Inc. US A 12.0 12. 0

Auditude US A 10. 5 10. 5

Glam Media US A 10.0 10. 0

Vis ible Measures US A 10.0 10. 0

SuperS ecret US A 10. 0 10. 0

GoViral UK 8.8 8.8

Greys tripe US A 5. 5 5.5

OMGP OP US A 5.0 5.0

Apture US A 4.1 4.1

S imulmedia US A 4.0 4.0

Tynt C anada 3.9 3.9

AnySource Media US A 3.2 3.2

Pixazza US A 3.1 3.1

Bit.ly US A 2.0 2.0

Hunch US A 2.0 2.0

Sports Compos ite DE US A 2.0 2.0

AdultSpace US A 1.3 1.3

Myngle Netherlands 1.3 1.3

33Across US A 0.8 0.8

Three Melons Argentina 0. 6 0.6

Mar-09 Total 1.3 1.3 0.6 41.1 50.3 43.0 12.0 10.0 159.5

Apr-09 Collective Media US A 20. 0 20. 0

GOOM R adio F rance 16. 0 16. 0

Marin S oftware US A 13. 0 13. 0

The R ubicon Project US A 8.0 5.0 13. 0

FreeWheel US A 12.0 12. 0

Cellufun US A 10. 0 10. 0

Conductor Inc. US A 10. 0 10. 0

ScanS cout US A 8.1 8.1

DoubleTwis t US A 5.0 5.0

IMShopping US A 4.7 4.7

Socialtext US A 4. 5 4.5

Mixercas t US A 4. 1 4.1

SoundCloud Germany 3.3 3.3

TubeMogul US A 3.0 3.0

Tribal Nova C anada 2.5 2.5

Tripbase US A 2.0 2.0

Socialcas t US A 1.4 1.4

Brandtology S ingapore 1.4 1.4

Scan & Target F rance 1.3 1.3

J odange US A 1.2 1.2

Foodis ta US A 0.6 0.6

Apr-09 Total 10.6 8.0 45.3 52.5 16.1 12.0 144.5

May-09 EveryZing USA 8. 3 8.3

Gist USA 6.8 6.8

Azuki Systems USA 6.0 6.0

I Love Rewards Canada 5.9 5.9

TimeBridge USA 5.0 5.0

DocuSign USA 5. 0 5.0

Resonate Networks USA 2.0 2.0

May-09 Total 14.8 10.9 8.3 5.0 38.9

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

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

Company HQ Webs ite Des cription

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

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

DocuS ign United S ta tes www. docusign. com DocuS ign, I nc. p rov ides s oftware services for electronic s ignature and electronic contrac t executi on (E C E ). It offers P rofess ional E d ition,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)

no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or

recommendations expressed in this research report.

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

Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550

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