web 2.0 weekly - 09-05-26

SOFTWARE & SERVICES 26 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

AVERAGE VALUATIONS DRIFT LOWER

AVERAGE FINANCING DROPS BELOW $6 MM DESPITE $20 MM ONE NET F INANCING Month-to-date financings in May totalled $106.6 mill ion; led by the $20 mil lion One Net financing. So far, there have been 18 financings in May, with 10 deals greater than $5 mil lion and only five less than $5 mill ion. There have been two financings greater than $10 mill ion (Cyberplex and One Net), with the capital raises by Imeem and EveryZing close behind at $8.8 mil lion and $8.3 mil lion, respectively. The average value thus far in May is $5.9 mil lion, slightly below the average value for Apri l of $6.5 mil lion on 21 financings. The March average was $6.6 mil lion 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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One Net’s $20 million financing is largest deal in May: One Net announced a $20 mill ion financing last week, the largest deal so far in May. Ten of the 18 deals in the month are equal to or greater than $5 mil lion. For additional details, see Figures 23 and 24 (at end of note). Also note that the spin-off of StumbleUpon from E-bay on a $29 mil lion valuation occurred in May. E-bay had bought StumbleUpon for $75 mil lion.

A strong price performance week: The companies in our universe had relatively strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 31 companies showing positive returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a 49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping 35.0% in the week.

This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer.

For further disclosures, please see last page of this report. www.researchcapi ta l .com

Toronto 416 .860 .7600 Montrea l 514.399 .1500 Vancouver 604 .662 .1800 Calgary 403 .265.7400 Regina 306 .566 .7550

THE WE B 2 . 0 UNI VE RSE

Ninety-three public Web 2.0 companies = $50 billion market cap: Our Web 2.0 universe contains 93 companies, with a combined market cap of approximately $49.4 bill ion (Figure 1). The average market cap for the group is ~$530 mil lion (but a median of only $53 mill ion), with average trail ing revenue of $152 mill ion (median $54 mill ion). The companies are also generally profitable, with a median EBITDA margin of 17%. On a valuation basis, the overall average is 5.4x trai ling revenue (median 1.8x) and 9.3x trail ing EBITDA (median 8.6x). Fourteen of the companies have more than 500 employees.

Comparable Company Analys is > Web 2.0

Company Name LTM as of Ticker E xchange

Trading

Currency HQ

Current

Price

USD Market

Cap ($m)

USD LTM Total

Rev ($m)

USD LTM Total

E B ITDA ($m)

EB ITDA

%

TEV/LTM

Revenue

TEV/LTM

E B ITDA Employees

Accelerize New Media, Inc. 3/31/2009 AC LZ OTC BB US D United S tates 0.52 14.4 4.1 (4. 4) NM 4.7x - 11

Actoz S oft C o. , L td. 12/31/2008 A052790 K OS E K R W S outh K orea 21, 750 149.0 74.9 14.9 20.0% 1.6x 8. 1x NA

AQ Interactive, Inc. 12/31/2008 3838 T S E J P Y J apan 67,000.00 38.4 63.5 5. 1 8. 0% 0.1x 1. 6x NA

As socia ted Media Holdings Inc. 6/30/2007 AS MH OTCPK US D United S tates 0 0.1 0.1 (2. 3) NM 8.1x - 3

B igs tring C orp. 12/31/2008 B S GC OTCBB US D United S tates 0.02 1.2 0.1 (2. 1) NM 31.7x - 4

B etawave C orpora tion 3/31/2009 BWAV OTCBB US D United S tates 0 2.6 8.4 (12.6) NM - - 53

B eyond C ommerce, Inc. 3/31/2009 B YOC OTCBB US D United S tates 1.15 51.0 7.1 (9. 5) NM 7.8x - 43

B right T hings plc 9/30/2008 AIM:B G T AIM GB P United K ingdom 0 4.7 0.3 (1. 8) NM 17.6x - 9

B roadW ebAs ia Inc. 9/30/2008 BW BA OTCPK US D United S tates 0.30 25.3 0.0 (4. 6) NM - - 46

CDC C orp. 3/31/2009 CHIN.A NasdaqG S US D Hong K ong 1 151.7 389.9 30.8 7. 9% 0.4x 5. 4x NA

C hangyou.com L imited 3/31/2009 C YOU NasdaqG S US D China 29.01 1,595. 6 222.5 135.1 60.7% 6.3x 10.4x 628

C hina G ateway Corporation 9/30/2008 CGWY OTCPK US D United S tates 0 0.0 6.7 (6. 6) -98. 9% 0.0x - 37

C hinese Gamer International 3/31/2009 G T S M:3083 G T S M TWD T aiwan 378.00 974.9 56.6 31.7 56.0% 16.0x 28.6x NA

C ornerW orld C orpora tion 1/31/2009 CW R L OTC BB US D United S tates 0 5.8 1.3 NM NM 5.5x - NA

C yberplex Inc. 3/31/2009 T S X:C X T S X CAD C anada 1.74 82.9 72.5 7. 5 10.3% 1.1x 10.5x NA

DADA S pA 9/30/2008 CM:DA CM E UR Italy 6 134.5 237.4 37.9 16.0% 0.8x 4. 9x NA

DXN Holdings B hd 2/28/2009 DXN K LS E MYR Malays ia 0.41 26.8 79.3 10.9 13.7% 0.5x 3. 9x NA

Dibz International, Inc. NA DIBZ OTC PK US D United S tates 0 0.0 NA NM NM - - NA

Digita lP os t Interactive, Inc. 12/31/2008 DG LP OTC BB US D United S tates 0.02 1.4 0.5 (3. 2) NM 5.6x - 7

Digita lT own, Inc. 2/28/2009 DGTW OTCBB US D United S tates 1 35.2 NM (3. 0) NM - - 3

Dolphin Digital Media, Inc. 3/31/2009 DPDM OTCBB US D United S tates 0.68 35.1 0.8 (3. 7) NM 46.8x - NA

E olith C o. Ltd. 12/31/2008 A041060 K OS E K R W S outh K orea 840 48.6 14.8 (3. 5) -23. 6% 3.4x - NA

E xtens ions , Inc. 12/31/2008 E XT I OTC PK US D United S tates 0.15 14.2 NM NM NM - - 2

F inancial Media G roup, Inc. 2/28/2009 FNGP OTCBB US D United S tates 0 0.3 7.2 2. 4 34.1% - - 22

F luid Mus ic C anada, Inc. 12/31/2008 T S X:FMN T S X CAD United S tates 0.75 35.0 4.6 (9. 3) NM 5.3x - NA

F rogs ter Interactive P ictures AG 6/30/2008 F R G XT R A E UR Germany 8 26.2 5.6 (3. 4) -60. 6% 4.6x - NA

G amania Digita l E ntertainment C o. , L td. 3/31/2009 6180 G T S M TWD T aiwan 52.80 245.8 127.1 21.1 16.6% 1.8x 10.5x NA

G ameOn C o Ltd. 12/31/2008 3812 T S E J P Y J apan 96,700 98.5 78.6 20.3 25.9% 0.5x 2. 0x NA

G eoS entric Oyj 12/31/2008 G E O1V HLS E E UR F inland 0.05 62.7 6.1 (13.8) NM 8.9x - 94

G iant Interactive G roup, Inc. 12/31/2008 GA NYS E US D China 8 1,866. 8 233.6 144.6 61.9% - - NA

G igaMedia Ltd. 12/31/2008 G IGM NasdaqG S US D T aiwan 5.95 321.5 190.4 46.0 24.2% 1.3x 5. 3x NA

G ravity C o. , Ltd 9/30/2008 GR V Y NasdaqGM US D S outh K orea 1 32.8 39.3 7. 5 19.2% - - 636

G ree, Inc. 6/30/2008 T S E :3632 T S E J P Y J apan 5,300.00 1,247. 3 31.0 11.1 36.0% 37.6x - NA

G ungHo Online E ntertainment, Inc. 12/31/2008 3765 OS E J P Y J apan 155,000 187.1 118.5 21.1 17.8% 1.4x 7. 8x NA

HanbitS oft, Inc. 12/31/2008 A047080 K OS E K R W S outh K orea 5, 520.00 97.1 55.8 (15.7) -28. 2% 1.4x - NA

IAC /InterActiveC orp. 3/31/2009 IAC I NasdaqG S US D United S tates 15 2,334. 7 1,406.4 42.6 3. 0% 0.3x 10.5x 3, 200

IAS E nergy, Inc. 1/31/2009 IAS C .A OTC BB US D C anada 0.26 18.2 0.0 (0. 8) NM - - NA

iseemedia Inc. 12/31/2008 IE E T S XV CAD C anada 0 4.1 1.3 (5. 3) NM 1.8x - NA

J umbuck E nterta inment P ty Ltd. 12/31/2008 AS X:JMB AS X AUD Aus tralia 0.41 15.9 14.0 5. 2 37.2% 0.8x 2. 1x 72

J umpT V Inc. 12/31/2008 T S X:J T V T S X CAD C anada 1 80.9 13.4 (8. 4) -62. 6% 4.7x - 237

K aboose Inc. 3/31/2009 T S X:K AB T S X CAD C anada 0.61 75.9 73.2 8. 7 11.9% 1.1x 9. 3x NA

K ingsoft C o. L td. 12/31/2008 3888 S E HK HKD China 6 783.0 120.3 46.6 38.7% 6.2x 15.9x 2, 271

L ingo Media C orporation 12/31/2008 T S XV :LM T S XV CAD C anada 1.05 12.0 0.9 (1. 5) NM 11.6x - NA

L iveW orld Inc. 12/31/2008 LVWD OTCPK US D United S tates 0 2.2 11.8 (0. 5) -4.3% 0.1x - NA

LookS mart, Ltd. 3/31/2009 LOOK NasdaqGM US D United S tates 1.28 21.9 60.7 (3. 8) -6.3% - - 90

Magnitude Information S ys tems Inc. 12/31/2008 MAGY OTCBB US D United S tates 0 4.6 0.1 (3. 0) NM - - 14

Mixi, Inc. 3/31/2009 2121 T S E J P Y J apan 470,000.00 761.4 127.0 45.0 35.4% 5.1x 14.3x NA

Modern T imes G roup Mtg AB 3/31/2009 MTG B OM S E K S weden 221 1,938. 6 1,796.0 275.1 15.3% 1.4x 9. 1x 2, 969

Moggle, Inc 3/31/2009 MMOG OTCBB US D United S tates 2.30 83.5 NM NM NM - - 3

MOKO.mobi L imited 12/31/2008 MK B AS X AUD Aus tralia 0 4.1 1.1 (2. 3) NM 2.6x - NA

Myriad G roup AG 12/31/2008 MYR N S WX CHF S witzerland 6.00 118.0 40.0 0. 8 1. 9% 3.3x - 405

NE OW IZ Games C orporation 12/31/2008 A095660 K OS E K R W S outh K orea 77, 500 598.5 198.7 53.3 26.8% 3.0x 11.0x NA

NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HKD China 5.45 371.6 87.1 34.4 39.5% 2.7x 6. 8x 2, 426

Netease. com Inc. 3/31/2009 NT E S NasdaqG S US D China 33 4,030. 0 471.1 306.2 65.0% - - NA

NeXplore C orpora tion 9/30/2007 NXP C OTC PK US D United S tates 0.70 39.0 NM (4. 9) NM - - 19

Ngi G roup Inc. 12/31/2008 2497 T S E J P Y J apan 34,000 44.3 103.6 31.9 30.8% - - NA

Northgate T echnologies L imited 12/31/2008 590057 B S E INR India 37.00 27.3 142.5 25.1 17.6% 0.2x 1. 1x 286

Open T ext C orp. 3/31/2009 OT E X NasdaqG S US D C anada 32 1,657. 6 782.6 199.2 25.5% 2.2x 8. 7x 3, 400

Openwave S ys tems Inc. 3/31/2009 OPW V NasdaqG S US D United S tates 1.79 149.1 197.2 (2. 1) -1.0% 0.2x - 630

P erfect W orld C o. , Ltd. 3/31/2009 PW R D NasdaqG S US D China 19 1,020. 3 228.4 124.7 54.6% - - NA

P hotoChannel Networks Inc. 3/31/2009 T S XV :P N T S XV CAD C anada 1.71 52.0 19.3 0. 5 2. 3% 2.6x - NA

Quepasa C orp. 3/31/2009 QP S A NasdaqCM US D United S tates 1 12.2 0.1 (10.8) NM - - 74

OAO R BC Information S ys tems 12/31/2007 R B C I R T S US D R us s ia 1.25 173.4 152.8 20.0 13.1% 0.0x 0. 3x NA

S handa Interactive E ntertainment Ltd. 12/31/2008 S NDA NasdaqG S US D China 55 3,811. 2 522.8 240.2 46.0% 0.3x 0. 6x NA

S hutterfly, Inc. 3/31/2009 S FLY NasdaqG S US D United S tates 14.29 359.7 215.2 28.3 13.2% 1.4x 10.4x 514

S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E K R W S outh K orea 10, 200 336.5 184.7 12.0 6. 5% 1.8x 28.0x NA

S NAP Interactive, Inc. 3/31/2009 S T V I OTC BB US D United S tates 0.75 8.1 3.3 0. 9 28.0% 2.0x 7. 2x 11

S NM G lobal Holdings 9/30/2008 S NMN OTCPK US D United S tates 0 0.0 2.0 (0. 7) -34. 8% 1.1x - 33

S ocia l Media V enures , Inc. 12/31/2008 S MV I OTC PK US D United S tates 0.01 0.0 0.1 (0. 1) -60. 5% 0.0x - NA

S ocia lwise, Inc. 3/31/2009 S C LW OTCBB US D United S tates 1 32.1 0.0 (4. 8) NM - - NA

S ohu. com Inc. 3/31/2009 S OHU NasdaqG S US D China 54.24 2,075. 4 460.0 200.5 43.6% 3.7x 8. 5x 3, 197

S ites earch Corporation 1/31/2009 S T P C OTC BB US D United S tates 3 28.2 NM (1. 1) NM - - 15

S park Networks , Inc. 3/31/2009 LOV AME X US D United S tates 2.25 46.3 54.3 11.8 21.7% 0.9x 4. 0x 183

S pectrumDNA, Inc. 3/31/2009 S P XA OTCBB US D United S tates 0 19.5 0.1 (2. 6) NM - - 7

T encent Holdings Ltd. 3/31/2009 700 S E HK HKD China 78.25 18,192.6 1,205.0 577.4 47.9% 16.4x 34.1x 6, 194

T he P a rent C ompany 8/2/2008 K IDS .Q OTC PK US D United S tates 0 0.2 112.0 (13.5) -12. 0% 0.2x - 347

T he9 L imited 12/31/2008 NC T Y NasdaqG S US D China 8.97 240.6 250.2 84.3 33.7% - - NA

T heS treet. com, Inc. 3/31/2009 T S CM NasdaqGM US D United S tates 2 58.2 67.0 1. 9 2. 9% - - 310

T otal S port Online AS 3/31/2006 TOS O OTCNO NOK Norway 0.03 0.1 2.1 (1. 1) -50. 6% 4.6x - 16

T ree.C om, Inc. 3/31/2009 T R E E NasdaqGM US D United S tates 12 131.7 215.6 (13.3) -6.2% 0.6x - 700

Uniserve C ommunica tions C orp. 2/28/2009 T S XV :US S T S XV CAD C anada 0.05 1.1 23.2 0. 1 0. 2% 0.2x - NA

United Online Inc. 3/31/2009 UNTD NasdaqG S US D United S tates 7 548.3 811.2 177.3 21.9% 1.0x 4. 7x 1, 469

UOMO Media, Inc 1/31/2009 UOMO OTCBB US D C anada 0.33 28.3 0.6 (0. 5) -78. 2% 45.0x - NA

V a lueC lick Inc. 3/31/2009 V C LK NasdaqG S US D United S tates 10 872.3 591.7 105.5 17.8% 1.3x 7. 3x 1, 189

V OIS , Inc. 12/31/2008 VOIS OTC BB US D United S tates 0.90 7.5 0.0 (1. 3) NM - - 4

W ebzen Inc. 3/31/2009 WZE N NasdaqGM US D S outh K orea 5 53.8 23.1 (0. 4) -1.9% - - 314

W izza rd S oftware Corporation 12/31/2008 WZE AME X US D United S tates 0.57 27.2 6.1 (6. 0) -98. 2% 4.5x - 110

W orlds .com Inc. 12/31/2008 WDDD OTCBB US D United S tates 0 7.9 0.1 (0. 7) NM - - 1

W ynds torm C orpora tion NA WYND OTCBB US D United S tates 0.51 9.2 NA NM NM - - NA

X ING AG 3/31/2009 O1B C XT R A E UR Germany 33 240.4 53.0 16.5 31.2% 3.6x 11.4x 239

Y edangOnline C orp. 12/31/2007 A052770 K OS E K R W S outh K orea 10, 800.00 136.0 55.0 12.3 22.4% 2.5x 11.0x NA

Ynk K orea Inc. 12/31/2007 A023770 K OS E K R W S outh K orea 7, 910 15.6 15.6 (1. 2) -7.6% 1.0x - NA

ZipLocal Inc. 12/31/2008 T S XV :ZIP T S XV CAD C anada 0.01 0.7 2.9 (3. 1) NM 0.7x - NA

High 18,192.6 1,796. 0 577.4 65.0% 46.8x 34.1x 6,194

Low 0.0 0.0 -15.7 -98. 9% 0.0x 0. 3x 1

Average 530.5 151.9 34.6 8.7% 5.4x 9.3x 664

Median 52.9 54.3 0.9 17.1% 1.8x 8. 6x 238

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 )

Financing activity in May lags: Month-to-date financings in May totalled $106.6 mil lion, led by the $20 mil lion One Net f inancing. So far, there have been 18 financings in May, with 10 deals greater than $5 mill ion and only f ive less than $5 mil lion. There have been two financings greater than $10 mil lion (Cyberplex and One Net), with the capital raises by Imeem and EveryZing close behind at $8.8 mil lion and $8.3 mill ion, respectively. The average value thus far in May is $5.9 mil lion, slightly below the average value for April of $6.5 mill ion on 21 financings. The March average was $6.6 mil lion on 24 financings. Except for two deals (Kaixin001.com and Collective Media), all 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

One Net’s $20 million financing is largest deal in May: One Net announced a $20 mill ion financing last week, the largest deal so far in May. Ten of the 18 deals in the month are equal to or greater than $5 mil lion. For additional details, see Figures 23 and 24 (at end of note). Also note that the spin-off of StumbleUpon from E-bay on a $29 mil lion valuation occurred in May. E-bay had bought StumbleUpon for $75 mil lion.

Financing & M/A Summary - Last Three Months

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

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

Capital Market Activity by Sector - Last Three Months

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

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

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

Web 2.0 Index Price Performance

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Figure 5. Web 2.0 Price Performance Source. Capital IQ

A strong price performance week: The companies in our universe had relatively strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 31 companies showing positive returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a 49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping 35.0% in the week.

1 Week Price Performance

-35.0%-31.0%

-16.0%-10.8%-10.7%

-8.7%-7.3%-6.5%-4.5%-4.4%-3.5%-3.3%-3.1%-2.8%-2.3%-1.5%-0.9%-0.6%-0.5%

0.2%0.2%0.6%1.2%2.4%2.7%2.7%3.2%3.3%3.5%3.7%3.9%5.3%5.9%7.3%7.6%8.5%9.1%

11.4%11.7%11.7%13.3%

18.1%20.2%20.4%

27.6%34.4%

39.7%45.0%45.8%

49.2%

-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Digita lTow n, Inc .Northgate Technologies L imited

Eolith Co. Ltd.GungHo Online Entertainment, Inc .

S park Netw orks , Inc .L ingo Media CorporationBeyond Commerce, Inc .

Frogs ter Interactive Pictures AGModern Times Group Mtg A B

NetDragon WebS of t, Inc .Gree, Inc .DADA S pAThe9 L imited

Tencent Holdings Ltd.Changyou.com Limited

LookSmart, Ltd.United Online Inc .Cyberplex Inc .V alueClick Inc .G igaMedia Ltd.

Giant Interactive Group, Inc .PhotoChannel Netw orks Inc .

Open Tex t Corp.HanbitS of t, Inc .

TheS treet.com, Inc .Y nk Korea Inc .S ohu.com Inc .

Y edangOnline Corp.IAC/InterA ctiveCorp.

Tree.Com, Inc .S hutterf ly , Inc .

GameOn Co Ltd.XING AG

Perfect World Co. , Ltd.Neteas e.com Inc .

S K Communications Co. , Ltd.Myriad Group AG

Mix i, Inc .Ngi Group Inc .

CDC Corp.S handa Interactive Entertainment Ltd.

K ings of t Co. Ltd.NEOWIZ Games Corporation

Gravity Co. , LtdAQ Interactive, Inc .

Gamania Digita l Entertainment Co. ,Chines e Gamer International

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

Openw ave S ys tems Inc .

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

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

Key Developments

Company Headline Notes

GigaMedia Ltd. (NasdaqGS :G IGM) G igaMedia Ltd. Appoints Michael Ding as Chairman G igaMedia L td. announced that board member Michael Ding has been appointed Cha irman of the board by the directors . Michael Ding

became a member of the company's board in J uly 2003 and was appointed non-E xecutive C hairman of the company by the board of

directors on May 14, 2009.

VOIS , Inc. (OTCBB :VOIS ) VOIS Inc. Announces E a rnings R esults for the S econd

Quarter E nded March 31, 2009

VOIS Inc. announced earnings res ults for the second quarter ended March 31, 2009. F or the quarter, the company reported net los s of

$153,685. In contras t, the company pos ted a net los s of $478,680 for the s ame quarter in the previous year.

SNAP Interactive, Inc . (OTCBB :STVI) S NAP Interactive Inc. R eports Unaudited C onsolidated

E arnings R esults for the F irs t Quarter E nded March 31,

2009

S NAP Interactive Inc. reported unaudited consolidated earnings res ults for the firs t quarter ended March 31, 2009. R evenue for the three

months ended March 31, 2009 was $768,972, as compared to $519,902 for the three months ended March 31, 2008, a 48% increase. T hes e

revenues a re primarily generated from advertis ements and premium features placed on various applica tions . T he year-on-year increas e in

revenue was primarily due to increased activity on applica tions as well as the introduction of revenue-generating premium features . T he

company's revenue of $768,972 for the three months ended March 31, 2009 repres ented a 29% decreas e as compared to revenue of

$1,087,144 for the quarter ending December 31, 2008. T he decreas e in sequential quarterly revenue was largely due to the declining s ta te of

the advertis ing market and the as s ociated declining payouts . Net income for the three months ended March 31, 2009 was $66,472 or $0.01

per diluted share as compared to net income of $190,509 or $0.02 per diluted share for the quarter ended March 31, 2008, a 65% decreas e.

T he decreas e in net income was primarily due to the provis ion for income taxes which were not paid during the same period las t year due to a

XING AG (XTRA:O1BC) XING Launches F irs t OpenS ocial Applica tions X ING has launched its firs t OpenS ocia l applica tions --'XING News ' and 'As k XING '--as beta vers ions . T he company is adopting a viral

approach here, a llowing the socia l applica tions to dis tribute throughout the network. B eta tes ters ' profiles and information about their

activities in the 'W hat's new in my network ' ticker let other members know that they are us ing the apps and how they a re us ing them--

prompting other members to dis cover the new features and ins ta ll them for themselves . In the firs t five days s ince the launch, the number of

beta tes ters rose from around 200 to more than 30,000, resulting in a record high in the level of tra ffic on the XING webs ite.

Soc ialwis e, Inc . (OTCBB :SCLW) S ocia lwis e Launches Unique Online P ayment S ys tem for

T eens and P arents

S ocia lwise Inc. launched B illMyP arents , an innovative online youth payment s ys tem that gives teens the freedom to s hop online and parents

the control over thes e purchas es , a ll in a s imple, automated s ys tem that keeps credit ca rd numbers and other pers ona l information s afe and

s ecure. T he B illMyP arents payment s ys tem pla tform addres s es this untapped teen s pending market with a multifaceted approach to online

payment proces s ing for teens and tweens , and gives them an easy way to purchas e products online without a credit ca rd. Us ing the

B illMyP arents button at the point of s a le, teens can initiate a purchase in s econds . P a rents complete the purchas e a t their convenience

through a s imple, eas y to use and automated s ys tem enabled by ins tant email and text notifications . At launch, the B illMyP arents payment

s ys tem pla tform includes : B illMyP arents S hopping e-commerce s ite: T o give teens immediate acces s to more than a million products ,

B illMyP arents has launched a shopping s ite powered by Amazon.com through their as s ociate program. T he B illMyP arents S hopping s ite

gives teens and tweens acces s to the entire inventory available online on Amazon.com, without needing a credit card to make purchas es . T ee

Perfect World Co., L td.

(NasdaqGS :PWRD)

Update to P erfect W orld C o. , L td. ’s E quity B uyback on

May 17, 2009

As of May 17, 2009, the company has repurchased 1,683,192 ADS 's (equiva lent to 8, 415,960 s hares ) and 18,750,000 shares , under its

s hare repurchase plan. J uile G ao of Latham & W atkins LLP acted as legal advisor to P erfect World.

SpectrumDNA, Inc . (OTCBB :S PXA) IAC 's Dictionary.com S elects Addictionary to P ower New

Wordplay O ffering

S pectrumDNA has partnered with Dictionary. com, an operating bus ines s unit of IAC , to licens e its award-winning Addictionary, a S aaS

(software-as -a -s ervice) user-generated dictionary that lets people create their own words and definitions . T he dea l marks S pectrumDNA's

firs t entree into IAC 's network of s ites and follows dis tribution deals with NB C Universa l and s evera l Comcas t Networks properties .

S pectrumDNA, a s ocial media s tudio that creates Digita l Network Applications and engines of engagement (or 'E nginets ') for media outlets

and advertis ers , is collaborating with IAC to package and sell their branded Addictionary as a one-of-a-kind, online s ponsors hip and vira l

marketing platform to attract premium brand-advertis ing dolla rs .

Perfect World Co., L td.

(NasdaqGS :PWRD)

P erfect W orld C o. Ltd. R eports Unaudited C onsolidated

F inancial R es ults for the F irs t Quarter E nded March 31,

2009 ; P rovides R evenue Guidance for the S econd

Quarter of 2009

P erfect W orld C o. Ltd. reported unaudited consolidated financia l res ults for the firs t quarter ended March 31, 2009. F or the quarter, the

company reported that total revenues were CNY 425.1 million, an increas e of 40.2% from CNY 303.2 million for the firs t quarter of 2008.

Operating profit was CNY 230.4 million, an increas e of 42.6% or CNY 68.8 million from CNY 161.6 million in firs t quarter of 2008. Non-GAAP

operating profit was CNY 245.8 million, an increas e of 45.0% or CNY 76.3 million from CNY 169.5 million in firs t quarter of 2008. Net income

was CNY 215.4 million, an increase of 36.1% or CNY 57.1 million from CNY 158.4 million in firs t quarter of 2008. Non-GAAP net income was

CNY 230.9 million, an increase of 38.8% or CNY 64.6 million from CNY 166.3 million in firs t quarter of 2008. Diluted earnings per ADS were

CNY 3.96 as compared to CNY 2.67 in firs t quarter of 2008. Non-GAAP diluted earnings per ADS were CNY 4.25 as compared to CNY 2.81

in firs t quarter of 2008. P rofit before tax was CNY 235.4 million compared to CNY 164.00 million reported a year ago. Net earnings per

diluted s hare was CNY 0.79 compared to CNY 0.53 reported a year ago. Net cas h provided by operating activities was CNY 249.92 million co

DigitalPos t Interactive, Inc .

(OTCBB :DGLP)

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

the F irs t Quarter E nded March 31, 2009

Digita lP os t Interactive Inc. reported earnings results for the firs t quarter ended March 31, 2009. F or the quarter, the company's revenues

ros e to $311,000, from $51,300 in the firs t quarter 2008. T he increase was driven largely by growth in the number of s ubscribers generated

by the company's marketing partnership with K iddie K andids and revenue from profes s ional s ervices that were implemented during the firs t

quarter 2009 for bus ines s es s eeking interactive media to enhance market awarenes s and pres ence. Net cash us ed by operating activities in

the firs t quarter 2009 declined to $62,100 from $412,300 in the firs t quarter 2008 and reflected in part the company's cos t-reduction efforts .

TheS treet.com, Inc. (NasdaqGM:TSCM) TheS treet.com Inc. Appoints Daryl Otte as C hief

E xecutive Officer

TheS treet. com Inc. announced that it has appointed Daryl Otte as Chief E xecutive Officer. Mr. Otte had previous ly been the company's

Interim C E O , a pos ition he was named to in March 2009. Mr. Otte, 47, has s erved as a Director of the company s ince 2001 and has

previous ly served as the C ha irman of the company's Audit C ommittee.

L iveWorld Inc. (OTCPK:LVWD) LiveWorld Inc. R eports Unaudited C onsolidated E arnings

R esults for the F irs t Quarter March 31, 2009 ; P rovides

R evenue Guidance for the S econd Quarter of 2009

L iveWorld Inc. reported unaudited consolidated earnings res ults for the firs t quarter March 31, 2009. F or the quarter, the company reported

$2.6 million in tota l revenues compared to the $3.0 million in total revenues reported for the firs t quarter of 2008. Net income of $21,000

compared to the net los s of $503,000 or $0.02 per bas ic share reported for the firs t quarter of 2008. Income from operations was $17,000

compared to los s from operations of $486,000 for the s ame period of las t year. Income before tax was $17,000 compared to los s before tax

of $500,000 for the s ame period of las t year. Net cas h provided by operating activities was $179,000 compared to net cas h used in operating

activities of $37,000 for the s ame period of las t year. P urchas e of property and equipment was $39,000 compared to $94,000 for the s ame

period of las t year. Adjus ted E B ITDA was $239,000, which was a s ignificant improvement from the $243,000 los s for the firs t quarter of

2008.

T he company anticipates its total revenues will be les s than it reported for the s econd quarter of 2008 and inline with the revenues for the

firs t quarter of 2009. However, the company believes the cos t reductions will improve the s econd quarter operationa l res ults compared to the s econd quarter of 2008.Openwave S ys tems Inc.

(NasdaqGS :OPWV)

Openwave S ys tems Inc. Introduces Openwave Location

E xpres s for Operators in E merging Markets

Openwave S ys tems Inc. announced Openwave Location E xpres s for G S M/UMT S , an eas y-to-deploy, location-bas ed infras tructure appliance

that enables rapid entry into the location-based services market. Location E xpres s s upports both bas ic and advanced location-bas ed

s ervices (LB S ) and is compatible with G S M/UMTS mobile phone and network s tandards . LB S s olution that helps enable operators in

emerging markets quick ly deploys s ecure location-bas ed s ervices . B as ic LB S enabled by Location E xpres s utilizes Cell/S ector ID pos ition

information to offer low cos t s ervices to a variety of s ubscriber segments and prepa id users with entry level voice and S MS capable

hands ets . Location E xpres s can als o enable bas ic enterprise fleet tracking applications s atis fied by Cell ID level accuracy, for example

tracking the progres s of long dis tance pas senger buses and transport vehicles . Advanced LB S enabled by Location E xpres s is backed by

high accuracy As s is ted G P S (A-G P S ) technology, which a llows an operator to offer more sophis tica ted high-accuracy consumer services

s uch as turn by turn navigation and child locator-type applica tions . In addition, advanced fleet track ing services a llow bus ines s es to monitor th

IB3 Networks , Inc . (OTCBB : IBNW) iB 3 Networks Inc. and iB eam S olutions Announce

E xtens ion of IT Managed S ervice C ontract for One Y ear

with C lient Hull & As s ociates Inc

iB 3 Networks Inc. and its wholly owned s ubs idia ry iB eam S olutions announced that its client Hull & As s ociates Inc. , has extended its IT

Managed S ervice contract for One Y ear for $144,000.

E xtens ions , Inc. (OTCPK :E XTI) E xtens ions Inc. R eports E arnings R esults for the F irs t


E xtens ions Inc. reported earnings res ults for the firs t quarter ended March 31, 2009. F or the quarter, the company reported a net los s of

$21,582. In contras t, the company pos ted a net los s of $76,529 for the s ame quarter in the previous year and a $357,468 accumulated net

los s s ince inception on F eb. 19, 1997.

Myriad Group AG (SWX:MYRN) Myriad G roup AG , Annua l G enera l Meeting, May 19,

2009

Myriad G roup AG , Annua l G eneral Meeting, May 19, 2009, a t 15:00 C entral E urope S tandard T ime. Location: R adis s on B lu Hotel, Zurich-

Airport, Zurich, S witzerland. Agenda : T o re-elect board members Hans -Ulrich Muller and J ean S chmitt for a term of office of one year

.

L iveWorld Inc. (OTCPK:LVWD) B raveHeart Women S elects L iveWorld as P rovider for

New S ocial Network About Inspiring and E mpowering

Women

B raveHeart W omen has s elected L iveWorld Inc. as provider of its new online community described as S ocia l Networking W ith a P urpos e.

T he new online community is built on L iveWorld's la tes t vers ion of its C ommunity C enter P ro-E dition pla tform and features member profiles ,

friends lis ts , gues tbooks , forums , blogs , photo a lbums , user video, groups and more.

Cyberplex Inc. (TSX:CX) Cyberplex Inc. has filed a F ollow-on E quity Offering in the

amount of CAD 15.00 million.

C yberplex Inc. has filed a F ollow-on E quity O ffering in the amount of CAD 15.00 million.

O ffer Details :

S ecurity T ype: Common S tock

Offered: 9375000

P rice/R ange: 1. 60

Netease.com Inc. (NasdaqGS :NTE S ) Netease.com Inc. Announces Unaudited Consolidated

E arnings R esults for the F irs t Quarter E nded March 31,

2009

Neteas e. com Inc. announced unaudited consolidated earnings res ults for the firs t quarter ended March 31, 2009. F or the quarter, the

company has reported operating profit of CNY 491,098,085, net income before tax of CNY 478,441,772, net income after tax of CNY

416,702,625 and net income attributable to shareholders of CNY 416,720,842 or CNY 0.13 diluted earnings per s hare and CNY 3.23 diluted

earnings per ADS on tota l revenues of CNY 781,694,557 compared to operating profit of CNY 404,383,564, net income before tax of CNY

384,179,583, net income a fter tax of CNY 269,346,735 and net income attributable to s hareholders of CNY 269,350,246 or CNY 0.08 diluted

earnings per share and CNY 2.08 diluted earnings per ADS on total revenues of CNY 651,923,462 for the s ame period las t year. T otal net

revenues for the quarter were CNY 775,922,426 agains t CNY 644,453,652 reported las t year. Net cas h provided by operating activities were

CNY 567,784,380 aga ins t CNY 494,960,784 reported las t year. In the quarter, the company reported capita l expenditure of CNY 23,031,133

on purchas e of property, equipment and s oftware compared to CNY 15,418,337 reported las t year.

Netease.com Inc. (NasdaqGS :NTE S ) Update to Netease.com Inc’s E quity B uyback on March

31, 2009

As of March 31, 2009, Netease. com Inc has repurchas ed own s hares worth $13.1 million, under the share repurchase plan, announced on

S eptember 12, 2008.

J umbuck Entertainment Pty Ltd.

(ASX:JMB )

J umbuck E ntertainment P ty Ltd. Launches P ower C hat

for iP hone

J umbuck E ntertainment P ty Ltd. has released its mobile chat and flirt s ervice, P ower C hat(TM), as an iP hone application. It is ava ilable for

immediate download in the Apple App S tore for $2.99. B ecause it taps into J umbuck's enormous globa l us er bas e, P ower C hat users on the

iP hone and iP od T ouch now have ins tant acces s to a divers e mobile community of more than 15 million people around the world, even

people who a re not us ing an iP hone or who a re on a non-iP hone carrier. P ower C hat for iP hone and iP od T ouch delivers all the core P ower

C hat capabilities plus s ome cool features that a re unique to the iP hone vers ion: -P ublic C hat R ooms --there's a lways someone looking to

chat. Choos e from various themed rooms including F lirt, S ingles , F riends , Dating, S ports , Da C lub, W orld C hat, as well as regiona l and age-

s pecific rooms , -P hotos --check out other chatters ' photos in chat rooms . S elect a chatter to see profile information, more photos , and s end

mes s ages directly to that person, -P ersona l C hats --one-to-one chat enables to take a public chat private, -F riends L is t--keep track of friends ,

s end private mess ages . and s ee when your favorite chatters are online, -P hoto Upload--eas ily upload photos s tored on your iP hone or take an

Magnitude Information S ys tems Inc.

(OTCBB :MAGY)

Magnitude Information S ys tems Inc. R eports E arnings

R esults for the F irs t Quarter E nded March 31, 2009

Magnitude Information S ys tems Inc. reported earnings res ults for the firs t quarter ended March 31, 2009. F or the quarter, the company

reported net los s of $1.36 million. In contras t, the company pos ted a net los s of $2.14 million for the s ame quarter in the previous year.

Worlds .com Inc . (OTCBB :WDDD) Worlds . com Inc. R eports E a rnings R es ults for the


Worlds . com Inc. reported earnings results for the quarter ended March 31, 2009. F or the quarter, the company reported a net los s of

$242,441. In contras t, the company pos ted a net los s of $107,954 for the s ame quarter in the previous year.

Kaboose Inc . (TSX:KAB ) K aboose Inc. has C hanged its Name to K AB Dis tribution

Inc

K aboos e Inc. changed its name to K AB Dis tribution Inc.

K ingsoft Co. L td. (S EHK :3888); The9

L imited (NasdaqGS :NCTY)

K ingsoft and The9 Announces C ooperation in J X3 Online

Operation

K ingsoft C o. L td. will cooperate with T he9 L imited on the operation of J X3 Online. T he9 will keep its hardware under operation and

consolidate its s ta tus over the C hines e online gaming market. B ecause the operation of C hina-des igned online games cos ts les s than that of

W oW .

Cyberplex Inc. (TSX:CX) Cyberplex Inc. , Annual Genera l Meeting, May 21, 2009 C yberplex Inc. , Annua l G enera l Meeting, May 21, 2009, at 09:00 E as tern Daylight. Location: 1255 B ay S treet, S uite 400, T oronto M5R 2A9,

Ontario,C anada . Agenda: T o receive and cons ider the audited consolidated financia l s tatements of the C orporation for the fis cal year ended

December 31, 2008 and the auditors ' report thereon; to elect directors ; to appoint auditors and to authorize the directors of the C orporation to

fix the auditors ' remuneration; and to transact s uch further or other bus ines s as may properly come before the Meeting or a t any

adjournments thereof

.

Kaboose Inc . (TSX:KAB ) K aboose Inc. , Annua l G eneral Meeting, May 21, 2009 K aboos e Inc. , Annual General Meeting, May 21, 2009, a t 09:00 E as tern Daylight. Location: S tikeman E lliott LLP , 5300 C ommerce C ourt

W es t, 199 B ay S treet, T oronto M5L1B 9, Ontario,C anada . Agenda : T o receive and cons ider the annua l report to the shareholders , the annua l

consolidated financial s ta tements of the corporation for the fis cal year ended December 31, 2008 and the report of the auditor thereon; to

elect the directors of the corporation; to appoint an auditor of the corporation and to authorize the directors to fix the auditor's remuneration;

to cons ider, and, if deemed advis able, to pas s , with or without va ria tion, a specia l res olution of the s hareholders to approve the s ale, directly

and indirectly, by the corporation of all of the is s ued and outs tanding s hares of its subs idia ry, K aboose Acquis ition (UK ) C ompany.

Shutterfly, Inc. (NasdaqGS :SFLY) S hutterfly Inc. , Annual General Meeting, May 21, 2009 S hutterfly Inc. , Annua l G enera l Meeting, May 21, 2009, at 11:00 P acific Daylight. Location: 1300 Is land Drive, R edwood C ity, C A

94065,United S ta tes . Agenda: T o elect three C las s I II directors to hold office until its 2012 Annua l Meeting of S tockholders ; to re-approve the

Internal R evenue Code S ection 162(m) provis ions of its 2006 E quity Incentive P lan to preserve its ability to deduct for corporate income tax

purposes compensation that qualifies as performance-bas ed compens ation under S ection 162(m) of the Interna l R evenue Code; to ratify the

s election by the Audit C ommittee of its B oard of Directors of P ricewaterhous eCoopers LLP as its independent regis tered public accounting

firm for the fis cal year ending December 31, 2009; and to conduct any other bus ines s properly brought before the meeting.

Magnitude Information S ys tems Inc.

(OTCBB :MAGY)

Magnitude Information S ys tems Inc. Names Andre

S cholz as a Director and as a C onsultant; Announces

Consolidation of B us ines s Operations in its New Y ork

C ity O ffices

On May 13, 2009, the B oard of Directors of Magnitude Information S ys tems Inc. appointed Andre S cholz to s erve as a director of company

and as a consultant. As a consultant, Mr. S cholz will s erve in the roles of C hief T echnology O fficer for the company and in the roles of

P res ident and Chief E xecutive Officer for K iwibox Media, Inc. , the company's wholly owned and principal bus ines s s ubs idiary. Mr. S cholz, 31

years of age, is currently the G eneral Manager / CE O of Interscholz B eteiligungs GmbH and Inters cholz Internet S ervices GmbH & C o. K G ,

G erman companies located in S tuttgart, G ermany. Mr. S cholz als o owns and manages Advanced T echnology G roup Deutschland GmbH,

a lso located in S tuttgart, which is engaged in the development and marketing of computer, patented algorithms in the E uropean market for

pattern recognition.

In connection with its bus ines s reorganization, the company has consolidated the s ites of its bus ines s operations in its New Y ork C ity offices ,

located a t 330 W es t 38th S treet, now its principal offices , and has terminated its lease for its New J ers ey office located at 1250 R oute 28,

B ranchburg, New J ers ey.Netease.com Inc. (NasdaqGS :NTE S ) Netease.com Announces E xpans ion in Online G ame

S ector

Neteas e. com Inc. is gearing up for the operation of the W orld of W arcra ft in Ma inland China . T he company earlier won a license from US -

bas ed online game titan B lizza rd E nterta inment to operate the la tter's World of W arcra ft on the mainland. Having purchas ed equipment

neces sary for the operation of W orld of W arcra ft, NetE as e. com is equipping brand new hardware facilities for the online game. T he W orld of

W arcra ft NetE ase. com authorized to run is jus t part of its s tra tegic expans ion.

ZipLocal Inc. R eports C onsolidated Unaudited C apital

E xpenditure for the T hird Quarter and Nine Months

E nded March 31, 2009

ZipLocal Inc. reported consolidated unaudited capita l expenditure for the third quarter and nine months ended March 31, 2009. F or the

quarter, the company reported cash us ed in operating activities was CAD 115,180 aga ins t the CAD 1,127,861 for the s ame period a year

ago. T he company spends CAD 12,953 on purchase of property, plant and equipment.

F or the nine months , the company reported cash us ed in operating activities was CAD 1,439,974 aga ins t the CAD 3,800,382 for the s ame

period a year ago. T he company s pends CAD 15, 817 on purchase of property, plant and equipment aga ins t the CAD 136,084 for the s ame

period a year ago.

ZipLocal Inc. R eports E arnings R es ults for the T hird

Quarter and Nine Months E nded March 31, 2009

ZipLocal Inc. reported earnings financial res ults for the third quarter and nine months ended March 31, 2009. Net revenues for the three

months ended March 31, 2009 were $687,481, repres enting a decreas e of $225, 658, or 25% from $913,139 as recorded in the s ame period

in the prior year. Net los s for the period was at $253,179, compared to a los s of $1, 379,804, or $0.02 per share, for the s ame period in the

prior year. T he C ompany is s eeing improvements in the operating results from the continued and aggres s ive efforts to decrease expens es

and increas es in productivity with a reduced number of s ta ff. T hese initiatives have s een an improvement in Adjus ted E B ITDA los s . Adjus ted

E B ITDA los s for the three months ended March 31, 2009 was $61, 043 repres enting an improvement of $353,503 from $414,546 for the three

months ended December 31, 2008.

Net revenues for the nine months ended March 31, 2009 were $2,181,582, representing a decrease of $950, 545, or 30% , from $3,132,127

as recorded in the s ame period in the prior year. Net los s was at $1, 905,273, or $0.02 per share, compared to a los s of $4, 604,372, or $0.07

per share, for the s ame period in the prior year.K ingsoft Co. L td. , Annual G enera l Meeting, May 25, 2009 K ingsoft C o. L td. , Annual G enera l Meeting, May 25, 2009, a t 15: 00 CC T -China C oas t, US S R Zone 7. Location: Zhuhai K ingsoft S oftware C o.

L td. , K ingsoft T ower, #8 L ians han Alley, J ings han R oad, J ida, Zhuhai, P R C , 519015, G uangdong P rovince,China . Agenda : T o receive and

cons ider the audited consolidated financia l s tatements , the report of the directors and the independent auditors ' report for the year ended

December 31, 2008; to declare a fina l dividend; to re-elect directors and authorize the board of directors to fix the directors ' remuneration; to

re-appoint auditors and to authorize the board of directors to fix the auditors ' remuneration and to cons ider; and to fit other res olution.

Figure 7. Key Developments Source. Capital IQ

VAL UAT IO N

Online Gaming companies lead market-cap charts: Eleven companies in our Web 2.0 universe top US$1 bill ion in market capital ization (Figure 8). Sixty of the 93 companies have market caps under US$100 mil lion, with 23 under $10 mil lion. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over $18 bill ion.

Market C ap (USD m)

0.00.00.00.00.10.10.20.30.71.11.21.42.22.64.14.14.64.75.87.57.98.19.212.012.214.214.415.615.918.219.521.925.326.226.827.227.328.228.332.132.835.035.135.238.439.044.346.348.651.052.053.858.262.775.980.982.983.597.198.5118.0131.7134.5136.0149.0149.1151.7173.4187.1240.4240.6245.8321.5336.5359.7371.6

548.3598.5

761.4

872.3974.91020.3

1247.31595.61657.6

1866.81938.6

2075.42334.7

3811.2

783.0

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

S oc ial Media V enures , Inc .Dibz International, Inc .S NM Global Holdings

China Gatew ay CorporationAs s ociated Media Holdings Inc .

Total S port Online A SThe Parent Company

Financial Media Group, Inc .Z ipLocal Inc .

Unis erve Communications Corp.B igs tring Corp.

DigitalPos t Interactive, Inc .L iveWorld Inc .

Betaw ave CorporationMOKO.mobi L imited

is eemedia Inc .Magnitude Information S ys tems Inc .

B right Things plcCornerWorld Corporation

V OIS , Inc .Worlds .com Inc .

S NAP Interactive, Inc .Wynds torm CorporationL ingo Media Corporation

Quepas a Corp.Ex tens ions , Inc .

A cceleriz e New Media, Inc .Y nk Korea Inc .

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

S pectrumDNA , Inc .LookSmart, L td.

B roadWebA s ia Inc .Frogs ter Interactive Pictures AG

DXN Holdings BhdWiz z ard S of tw are CorporationNorthgate Technologies L imited

S ites earch CorporationUOMO Media, IncS oc ialw is e, Inc .Gravity Co. , L td

Fluid Mus ic Canada, Inc .Dolphin Digital Media, Inc .

DigitalTow n, Inc .AQ Interactive, Inc .

NeXplore CorporationNgi Group Inc .

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

Beyond Commerce, Inc .PhotoChannel Netw orks Inc .

Webzen Inc .TheS treet.com, Inc .

GeoS entric Oy jK aboos e Inc .JumpTV Inc .

Cyberplex Inc .Moggle, Inc

HanbitS of t, Inc .GameOn Co Ltd.Myriad Group AG

Tree.Com, Inc .DADA S pA

Y edangOnline Corp.Actoz S oft Co. , L td.

Openw ave S ys tems Inc .CDC Corp.

OAO RBC Information S ys temsGungHo Online Entertainment, Inc .

XING AGThe9 Limited

Gamania Digital Entertainment Co. ,GigaMedia L td.

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

NetDragon WebS of t, Inc .United Online Inc .

NEOWIZ Games CorporationMix i, Inc .

K ings oft Co. L td.V alueClick Inc .

Chines e Gamer InternationalPerfect World Co. , L td.

Gree, Inc .Changyou.com Limited

Open Text Corp.G iant Interactive Group, Inc .Modern Times Group Mtg A B

S ohu.com Inc.IAC/InterActiveCorp.

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 5.4x: The overall average TEV/Revenue (LTM) multiple for our group is 5.4x (down from 5.6x last week) (Figure 9). Two companies trade at more than 40x revenue – Dolphin Digital (OTCBB: DPDM) at 46.8x and UOMO Media (OTCBB:UOMO) at 45.0x. The median is only 1.8x. Note that we exclude multiples greater than 50x. Thirty companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.00.00.00.10.10.20.20.20.20.30.30.40.50.50.60.70.80.80.91.01.01.11.11.11.31.31.41.41.41.41.61.81.81.82.0

2.22.52.62.62.73.03.33.43.63.7

4.54.64.64.74.75.15.35.55.66.26.3

7.88.18.9

11.6

16.016.417.6

31.7

37.6

45.046.8

A verage, 5.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Social Media Venures, Inc.

China Gateway Corporation

OAO RBC Information Systems

LiveWorld Inc.

AQ Interactive, Inc.

Uniserve Communications Corp.

Northgate Technologies Limited

The Parent Company

Openwave Systems Inc.

Shanda Interactive

IAC/InterActiveCorp.

CDC Corp.

GameOn Co Ltd.

DXN Holdings Bhd

Tree.Com, Inc.

ZipLocal Inc.

DADA SpA

Jumbuck Entertainment Pty Ltd.

Spark Networks, Inc.

Ynk Korea Inc.

United Online Inc.

SNM Global Holdings

Cyberplex Inc.

Kaboose Inc.

GigaMedia Ltd.

ValueClick Inc.

Shutterfly, Inc.

GungHo Online Entertainment,

Modern Times Group Mtg AB

HanbitSoft, Inc.

Actoz Soft Co., Ltd.

Gamania Digital Entertainment

iseemedia Inc.

SK Communications Co., Ltd.

SNAP Interactive, Inc.

Open Text Corp.

YedangOnline Corp.

MOKO.mobi Limited

PhotoChannel Networks Inc.

NetDragon WebSoft, Inc.

NEOWIZ Games Corporation

Myriad Group AG

Eolith Co. Ltd.

XING AG

Sohu.com Inc.

Wizzard Software Corporation

Frogster Interactive Pictures AG

Total Sport Online AS

Accelerize New Media, Inc.

JumpTV Inc.

Mixi, Inc.

Fluid Music Canada, Inc.

CornerWorld Corporation

DigitalPost Interactive, Inc.

Kingsoft Co. Ltd.

Changyou.com Limited

Beyond Commerce, Inc.

Associated Media Holdings Inc.

GeoSentric Oyj

Lingo Media Corporation

Chinese Gamer International

Tencent Holdings Ltd.

Bright Things plc

Bigstring Corp.

Gree, Inc.

UOMO Media, Inc

Dolphin Digital Media, 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 18.7x (down from 20.6x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 5.9x revenue (down from 6.4x last week) (Figure 11). Eleven of the companies are Canadian (average 7.1x revenue).

Average TEV/LTM Revenue - By Exchange

0.5 0.20.00.60.8

1.41.41.61.71.72.12.73.03.33.44.14.6

8.48.98.9

10.8

17.6

18.7

0.02.0

4.06.08.0

10.0

12.014.016.0

18.020.0

OT

CB

B

AIM

TS

E

HLS

E

GT

SM

SE

HK

OT

CN

O

XT

RA

TS

XV

SW

X

TS

X

AM

EX

KO

SE

AS

X

NasdaqG

S

OT

CP

K

OM

OS

E

CM

NasdaqG

M

KLS

E

BS

E

RT

S

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

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.4 0.2 0.00.8 0.5

1.41.72.13.34.1

4.65.95.96.47.1

8.98.9

17.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Unite

d

Japan

Fin

land

Canada

Taiw

an

Chin

a

Unite

d

Norw

ay

Germ

any

Sw

itzerland

So

uth

Austr

alia

Sw

eden

Italy

Mala

ysia

Hong K

ong

India

Russia

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

(x)

# Companies

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

TEV/EBITDA (LTM) averages 9.3x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 9.3x LTM EBITDA (vs. 9.2 last week), led by Tencent Holding’s (700-SEHK) 34.1x multiple (Figure 12). Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 8.3x (vs. 8.2x last week).

TEV/LTM EB ITDA (x)

0.3 0.6 1.1 1.6 2.0 2.13.9 4.0 4.7 4.9 5.3 5.4

6.8 7.2 7.3 7.8 8.1 8.5 8.7 9.1 9.310.4 10.4 10.5 10.5 10.5 11.0 11.0 11.4

14.315.9

28.0 28.6

34.1

Average, 9.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

OAO RBC Information Systems

Shanda Interactive Entertainment Ltd.


AQ Interactive, Inc.

GameOn Co Ltd.


DXN Holdings Bhd


United Online Inc.

DADA SpA

GigaMedia Ltd.

CDC Corp.



ValueClick Inc.

GungHo Online Entertainment, Inc.


Sohu.com Inc.

Open Text Corp.


Kaboose Inc.

Shutterfly, Inc.


Cyberplex Inc.


Gamania Digital Entertainment Co., Ltd.

YedangOnline Corp.


XING AG

Mixi, Inc.

Kingsoft Co. Ltd.

SK Communications Co., Ltd.



Figure 12. TEV/EBITDA Ranking Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (20), trading at an average multiple of 7.2x (vs. 7.6x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 7.3x EBITDA (Figure 14). Eleven of the companies are Canadian (average 9.5x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.00.31.12.13.94.0

4.95.97.27.27.89.19.9

11.414.5

19.0

19.6

0.0

5.0

10.0

15.0

20.0

25.0

GT

SM

SE

HK

KO

SE

XT

RA

TS

X

OM

OS

E

OT

CB

B

Nasd

aqG

S

TS

E

CM

AM

EX

KLS

E

AS

X

BS

E

RT

S

SW

X

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

(x)

# Companies

Average TEV/LTM EBITDA - By Country

2.10.3

1.1

3.94.9

5.46.47.3

9.19.511.4

12.7

14.5

14.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Ta

iwan

South

Kore

a

Chin

a

Germ

any

Ca

nada

Sw

eden

Unite

d

Sta

tes

Japan

Hong

Kong

Italy

Mala

ysia

Austr

alia

India

Russia

3 9 10 2 11 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 15.3x: The average multiple for the 31 companies with positive earnings (and multiples under 100x) is 15.3x LTM EPS (vs. 14.1x last week), led Tencent Holding’s (700-SEHK) 43.7x multiple (Figure 15). Twelve of the companies have P/E multiples under 10x. The median is just 12.4x.

P/E LTM (x)

0.7 1.6 1.7 1.8 2.4 3.24.4

5.6 6.6 7.59.7 9.7 10.2 10.9 11.7 12.4 12.5 13.3 14.2 14.4

19.9 20.322.8 23.1

25.9 26.027.3

35.637.4 37.5

43.7

Average, 15.3

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.

Shanda Interactive Entertainment Ltd.

DXN Holdings Bhd



DADA SpA

GameOn Co Ltd.

Cyberplex Inc.

GigaMedia Ltd.


Sohu.com Inc.


Ngi Group Inc.



YedangOnline Corp.


Kingsoft Co. Ltd.

XING AG


Open Text Corp.

Gamania Digital Entertainment Co., Ltd.

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 (20), trading at an average multiple of 19.8x. On a geographic basis, the United States has the most companies (40), trading at an average of 18.4x earnings (Figure 17). Eleven of the companies are Canadian (average 17.8x EPS).

Average P/E - By Exchange

1.71.8

4.45.66.67.59.69.7

14.2

19.819.922.824.425.8

31.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

GT

SM

SE

HK

KO

SE

XT

RA

TS

E

OT

CB

B

AM

EX

TS

X

Nasd

aqG

S

CM

AS

X

OM

KLS

E

NY

SE

BS

E

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

(x)

# Companies

Average P/E - By Country

1.7

4.45.66.6

7.511.0

17.818.4

19.922.824.4

24.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Taiw

an

South

Kore

a

Germ

any

Jap

an

Unite

d

Sta

tes

Cana

da

Chin

a

Italy

Aus

tra

lia

Sw

ede

n

Ma

laysia

India

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

(x)

# Companies

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

UP CO MI NG EVE NTS

Earnings CalendarCompany Date & Time Quarter Conf Call Details

G iant Interactive G roup, Inc. (NY S E :GA) Tuesday, May 26, 2009 8:00 AM (E DT ) Q1 2009 800-573-4842

S handa Interactive E nterta inment L td. (NasdaqGS :S NDA) Tuesday, J une 02, 2009 9:00 PM (E DT ) Q1 2009 1-800-299-0433

G igaMedia L td. (NasdaqGS :G IGM) Tuesday, J une 09, 2009 8:00 AM (E DT ) Q1 2009 NA

Figure 18. Earnings Calendar Source. Company reports


Price Performance

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

Accelerize New Media, Inc. US D ACLZ OTC B B 14.4 0.52 4.0% 6.1% 73.3% 30.0% -30.7% -30.7%

Actoz S oft C o. , L td. K R W A052790 K OS E 149.0 21,750.00 45.0% 48.0% 98.6% 136.4% 148.6% -4.2%

AQ Interactive, Inc. J P Y 3838 T S E 38.4 67,000.00 27.6% 42.3% 107.8% 102.4% -64.4% -67.8%

Associated Media Holdings Inc. US D AS MH OTC P K 0.1 0.00 0.0% 7.1% -70.0% -50.0% NM -97.0%

B igs tring Corp. US D B S GC OTC B B 1.2 0.02 0.0% 67.9% 64.3% 0.0% -80.8% -88.5%

B etawave C orporation US D BWAV OTC B B 2.6 0.09 -35.7% -35.7% -40.0% -57.1% -64.0% -78.6%

B eyond Commerce, Inc. US D B YOC OTC B B 51.0 1.15 -7.3% -32.4% 94.9% 9.5% -48.9% -65.2%

B right T hings plc GB P AIM:BG T AIM 4.7 0.02 -14.3% -14.3% -9.1% 26.1% -46.8% -46.8%

B roadWebAs ia Inc. US D BW BA OTC P K 25.3 0.30 -33.8% -33.8% -70.5% -77.9% -86.8% -89.7%

CDC C orp. US D CHIN.A NasdaqG S 151.7 1.43 11.7% 17.2% 74.4% 104.3% -56.8% -59.0%

Changyou.com Limited US D CYOU NasdaqG S 1,595.6 29.01 -2.3% 10.8% NM NM NM -23.1%

China Gateway C orporation US D CGWY OTC P K 0.0 0.00 100.0% 100.0% 0.0% -86.7% -96.7% -95.6%

Chines e Gamer International TWD GTS M:3083 G T S M 974.9 378.00 39.7% 75.8% 219.0% 369.6% 212.4% 0.0%

CornerW orld Corporation US D CW R L OTC B B 5.8 0.09 -10.0% -35.7% -40.0% -55.0% -80.0% -88.6%

C yberplex Inc. CAD TS X:CX T S X 82.9 1.74 -0.6% 42.6% 397.1% 411.8% 104.7% -12.6%

DADA S pA E UR CM:DA CM 134.5 5.93 -3.3% 3.0% 8.2% -7.2% -59.8% -62.1%

DXN Holdings B hd MYR DXN K LS E 26.8 0.41 8.0% 28.6% 28.6% 11.0% -6.9% -19.8%

Dibz International, Inc. US D DIB Z OTC P K 0.0 0.00 -90.0% -90.0% -90.0% -98.0% -98.0% -98.0%

DigitalP os t Interactive, Inc. US D DG LP OTC B B 1.4 0.02 23.3% -2.6% 131.3% -53.8% -92.0% -92.0%

DigitalT own, Inc. US D DGTW OTC BB 35.2 1.30 -35.0% -35.0% -35.0% -35.0% -56.7% -78.7%

Dolphin Digital Media, Inc. US D DPDM OTC BB 35.1 0.68 -2.9% 36.0% 70.0% -9.3% NM -39.8%

E olith C o. L td. K R W A041060 K OS E 48.6 840.00 -16.0% 10.5% 25.4% 66.3% -7.2% -27.6%

E xtens ions , Inc. US D E XT I OTC P K 14.2 0.15 -25.0% -25.0% 185.7% 50.0% 0.0% -85.1%

F inancia l Media G roup, Inc. US D FNGP OTC B B 0.3 0.00 -23.8% -36.0% -89.3% -95.4% -99.5% -99.7%

F luid Mus ic C anada, Inc. CAD TS X:FMN TS X 35.0 0.75 25.0% 114.3% 50.0% 150.0% NM -63.2%

F rogs ter Interactive P ictures AG E UR FR G XTR A 26.2 7.95 -6.5% -9.5% 97.3% 94.4% 79.1% -19.7%

G amania Digita l E ntertainment Co. , L td. TWD 6180 G T S M 245.8 52.80 34.4% 64.2% 142.2% 319.0% 53.9% 0.0%

G ameOn Co L td. J P Y 3812 T S E 98.5 96,700.00 5.3% 5.1% 5.1% -34.2% -29.9% -40.9%

GeoS entric Oyj E UR GE O1V HLS E 62.7 0.05 -16.7% 25.0% 66.7% 66.7% -28.6% -28.6%

G iant Interactive G roup, Inc. US D GA NYS E 1,866.8 8.26 0.2% 1.7% 35.9% 37.0% -38.6% -44.5%

G igaMedia L td. US D G IGM NasdaqG S 321.5 5.95 0.2% -11.1% -6.0% 57.0% -65.4% -66.8%

G ravity Co. , Ltd US D GR VY NasdaqGM 32.8 1.18 20.4% 20.4% 68.6% 68.6% -15.1% -40.7%

G ree, Inc. J P Y T S E :3632 T S E 1,247.3 5,300.00 -3.5% -6.2% 18.0% NM NM -15.9%

GungHo Online E ntertainment, Inc. J P Y 3765 OS E 187.1 155,000.00 -10.8% 21.4% 27.3% 49.2% -54.7% -58.1%

HanbitS oft, Inc. K R W A047080 K OS E 97.1 5,520.00 2.4% 15.7% 72.0% 91.0% 22.3% -16.9%

IAC /InterActiveC orp. US D IAC I NasdaqG S 2,334.7 15.47 3.5% -4.2% 2.8% 3.6% -66.8% -69.4%

IAS E nergy, Inc. US D IAS C .A OTC B B 18.2 0.26 -1.9% 8.3% 1138.1% 766.7% 13.0% -25.7%

is eemedia Inc. CAD IE E T S XV 4.1 0.09 -10.0% -10.0% 12.5% 50.0% -61.7% -74.3%

J umbuck E ntertainment P ty Ltd. AUD AS X: JMB AS X 15.9 0.41 0.0% -10.9% 0.0% -2.4% -26.8% -37.4%

J umpTV Inc. CAD TS X: J T V T S X 80.9 0.80 2.6% 42.9% 105.1% 158.1% 23.1% -37.5%

K aboose Inc. CAD TS X:K AB T S X 75.9 0.61 1.7% 3.4% 60.5% 103.3% -24.7% -39.0%

K ingsoft C o. L td. HK D 3888 S E HK 783.0 5.62 18.1% 51.1% 108.9% 168.9% 48.7% -5.9%

L ingo Media Corporation CAD TS XV :LM TS XV 12.0 1.05 -8.7% 16.7% 16.7% -11.0% -44.4% -46.7%

L iveW orld Inc. US D LVWD OTC P K 2.2 0.07 16.7% -30.0% 40.0% -22.2% -80.0% -80.0%

LookS mart, L td. US D LOOK NasdaqGM 21.9 1.28 -1.5% -2.3% 2.4% 8.0% -71.2% -72.8%

Magnitude Information S ys tems Inc. US D MAGY OTC B B 4.6 0.01 0.0% -33.3% -47.4% -16.7% -44.4% -66.7%

Mixi, Inc. J P Y 2121 T S E 761.4 470,000.00 11.4% -2.7% 28.1% -17.3% -40.9% -49.0%

Modern T imes G roup Mtg AB S E K MTG B OM 1,938.6 220.50 -4.5% 4.3% 89.3% 56.4% -47.3% -48.2%

Moggle, Inc US D MMOG OTC B B 83.5 2.30 15.0% 15.0% 53.3% NM NM 0.0%

MOKO.mobi L imited AUD MKB AS X 4.1 0.06 -14.3% -29.4% 50.0% 50.0% 20.0% -40.0%

Myriad G roup AG CHF MYR N S WX 118.0 6.00 9.1% 37.9% 61.3% -11.8% -36.2% -41.5%

NE OW IZ G ames Corporation K R W A095660 K OS E 598.5 77,500.00 20.2% 32.7% 134.8% 358.6% 121.1% -7.6%

NetDragon WebS oft, Inc. HK D 777 S E HK 371.6 5.45 -4.4% 18.7% 101.1% 118.0% -47.6% -53.0%

Netease. com Inc. US D NTE S NasdaqG S 4,030.0 32.75 7.6% 9.4% 70.4% 106.0% 43.4% -2.7%

NeXplore Corporation US D NXP C OTC P K 39.0 0.70 0.0% -12.5% -26.3% -44.0% NM -51.7%

Ngi G roup Inc. J P Y 2497 T S E 44.3 34,000.00 11.7% -6.3% 90.1% -36.9% -76.6% -78.6%

Northgate T echnologies L imited INR 590057 B S E 27.3 37.00 -31.0% -19.0% 1.2% -35.1% -90.9% -91.2%

Open T ext Corp. US D OTE X NasdaqG S 1,657.6 31.50 1.2% -8.5% -4.5% 21.5% -10.0% -19.4%

Openwave S ys tems Inc. US D OPWV NasdaqG S 149.1 1.79 49.2% 49.2% 103.4% 258.0% -6.3% -10.1%

P erfect W orld Co. , Ltd. US D PW R D NasdaqG S 1,020.3 19.34 7.3% 18.5% 51.1% 22.9% -23.6% -31.1%

P hotoC hannel Networks Inc. CAD TS XV :P N T S XV 52.0 1.71 0.6% 3.6% -10.9% 47.4% -53.9% -58.8%

Quepasa C orp. US D QP S A NasdaqCM 12.2 0.96 -4.0% 1.1% -29.9% -55.1% -63.1% -72.3%

OAO R BC Information S ys tems US D R BC I R T S 173.4 1.25 26.9% 204.9% 346.4% -16.7% -85.2% -86.3%

S handa Interactive E nterta inment L td. US D S NDA NasdaqG S 3,811.2 54.93 13.3% 22.7% 74.4% 141.3% 55.6% -2.5%

S hutterfly, Inc. US D S F LY NasdaqG S 359.7 14.29 3.9% 30.9% 83.4% 123.3% 10.2% -5.2%

S K C ommunications C o. , L td. K R W A066270 K OS E 336.5 10,200.00 8.5% 2.0% 55.5% 138.6% -32.0% -48.2%

S NAP Interactive, Inc. US D S TV I OTC B B 8.1 0.75 -6.3% 7.1% -25.0% 0.5% 8.7% -30.6%

S NM G loba l Holdings US D S NMN OTC P K 0.0 0.00 -16.7% 25.0% 150.0% -95.0% -99.9% -99.9%

S ocial Media V enures , Inc. US D S MV I OTC P K 0.0 0.01 -93.3% -99.2% -99.2% -99.7% NM -99.8%

S ocialwis e, Inc. US D S CLW OTC B B 32.1 0.74 -15.9% 111.4% 60.9% -58.9% -21.3% -73.9%

S ohu.com Inc. US D S OHU NasdaqG S 2,075.4 54.24 3.2% 16.3% 20.1% 44.6% -30.2% -40.7%

S itesearch C orporation US D S TP C OTC B B 28.2 3.50 -30.0% NM NM NM NM -30.0%

S park Networks , Inc. US D LOV AME X 46.3 2.25 -10.7% 0.9% -10.4% -26.0% -49.1% -49.6%

S pectrumDNA, Inc. US D S P XA OTC B B 19.5 0.40 17.6% 90.5% 300.0% 66.7% NM -33.3%

T encent Holdings Ltd. HK D 700 S E HK 18,192.6 78.25 -2.8% 18.7% 73.9% 100.6% 19.1% -5.9%

T he P arent Company US D K IDS .Q OTC P K 0.2 0.01 -47.4% -16.7% -60.0% -98.9% -99.6% -99.7%

T he9 L imited US D NC TY NasdaqG S 240.6 8.97 -3.1% -6.2% -26.5% -17.9% -64.1% -68.5%

T heS treet.com, Inc. US D T S CM NasdaqGM 58.2 1.90 2.7% -23.1% -12.8% -37.7% -74.7% -75.8%

T ota l S port Online AS NOK TOS O OTCNO 0.1 0.03 0.0% 0.0% -25.0% -40.0% -70.0% -70.0%

T ree.C om, Inc. US D TR E E NasdaqGM 131.7 12.20 3.7% 114.0% 199.8% 444.6% NM -6.7%

Unis erve Communications Corp. CAD TS XV :US S T S XV 1.1 0.05 25.0% 25.0% -37.5% -72.2% -85.7% -85.7%

United Online Inc. US D UNTD NasdaqG S 548.3 6.56 -0.9% 37.0% 45.1% 17.8% -46.4% -47.5%

UOMO Media, Inc US D UOMO OTC BB 28.3 0.33 -5.7% 312.5% 312.5% 112.9% -32.7% -68.9%

V alueC lick Inc. US D VCLK NasdaqG S 872.3 10.03 -0.5% 1.6% 62.3% 82.7% -48.9% -50.6%

VOIS , Inc. US D VOIS OTC B B 7.5 0.90 181.3% 200.0% 20.0% 20.0% NM -83.9%

W ebzen Inc. US D WZE N NasdaqGM 53.8 4.53 45.8% 64.3% 312.2% 504.5% 31.0% -1.2%

W izzard S oftware C orporation US D WZE AME X 27.2 0.57 -12.3% -5.0% -1.7% -13.6% -73.5% -74.6%

Worlds .com Inc. US D WDDD OTC B B 7.9 0.15 -11.8% -11.8% 25.0% 7.1% -57.1% -62.5%

W ynds torm C orporation US D WYND OTC B B 9.2 0.51 1600.0% 200.0% 325.0% 325.0% -15.0% -40.0%

XING AG E UR O1BC XT R A 240.4 32.56 5.9% 8.6% 8.5% 32.1% -17.2% -24.4%

Y edangOnline C orp. K R W A052770 K OS E 136.0 10,800.00 3.3% 11.7% 71.4% 74.5% -8.5% -13.9%

Ynk K orea Inc. K R W A023770 K OS E 15.6 7,910.00 2.7% 68.3% 105.5% 42.8% -42.1% -46.9%

ZipLocal Inc. CAD TS XV :ZIP T S XV 0.7 0.01 100.0% 100.0% 100.0% -33.3% -93.3% -94.1%

High 1600.0% 312.5% 1138.1% 766.7% 212.4% 0.0%

Low -93.3% -99.2% -99.2% -99.7% -99.9% -99.9%

Average 530.5 20.3% 22.3% 70.0% 59.6% -29.1% -50.3%

Median 0.0% 8.5% 50.0% 22.9% -44.4% -48.2%

Figure 19. Price Performance Source. Capital IQ

Comparable Company Analys is > Web 2.0Valuation Multiples

Company Name Sector Country

Primary

E xchange Ticker

USD Market

Cap ($m)

TEV/LTM

R evenue

TEV/ NTM

R evenue

TE V/LTM

EB ITDA

TEV/NTM

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

Accelerize New Media , Inc. Direct Marketing United S ta tes OTCB B AC LZ 14.4 4.7x - - - - - -

Actoz S oft C o. , Ltd. G aming S outh K orea KOS E A052790 149.0 1.6x - 8. 1x - 23.1x - 2.6x

AQ Interactive, Inc. G aming J apan T S E 3838 38.4 0.1x - 1. 6x - - - 0.6x

As socia ted Media Holdings Inc. Mobile United S ta tes OTCP K AS MH 0.1 8.1x - - - - - -

B igs tring Corp. Ins tant Messaging United S ta tes OTCB B B S GC 1.2 31.7x - - - - - -

B etawave Corpora tion Media United S ta tes OTCB B BWAV 2.6 - - - - - - 0.4x

B eyond Commerce, Inc. S ocial Networking United S ta tes OTCB B B YOC 51.0 7.8x - - - - - -

B right T hings plc S ocial Networking United K ingdom AIM AIM:B GT 4.7 17.6x - - - - - -

B roadWebAs ia Inc. S ocial Networking United S ta tes OTCP K BWBA 25.3 - - - - - - -

CDC Corp. G aming Hong K ong NasdaqGS CHIN.A 151.7 0.4x 0.4x 5. 4x 5.8x - 10.4x -

Changyou.com Limited G aming C hina NasdaqGS C YOU 1,595.6 6.3x 4.8x 10.4x - 10.9x - 9.9x

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

C hines e G amer Interna tional G aming T a iwan G T S M GT S M:3083 974.9 16.0x - 28.6x - 37.4x - 14.1x

CornerWorld C orporation C ontent United S ta tes OTCB B CW R L 5.8 5.5x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T S X:CX 82.9 1.1x 0.8x 10.5x 7.0x 9.7x 10.4x 9.7x

DADA S pA S ocial Networking Italy CM CM:DA 134.5 0.8x - 4. 9x - 7.5x - -

DXN Holdings B hd S ocial Networking Malays ia K LS E DXN 26.8 0.5x - 3. 9x - 4.4x - 0.5x

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

DigitalP os t Interactive, Inc. C ontent United S ta tes OTCB B DGLP 1.4 5.6x - - - - - -

DigitalT own, Inc. S ocial Networking United S ta tes OTCB B DGTW 35.2 - - - - - - -

Dolphin Digital Media , Inc. S ocial Networking United S ta tes OTCB B DPDM 35.1 46.8x - - - - - -

E olith C o. L td. G aming S outh K orea KOS E A041060 48.6 3.4x - - - - - 4.6x

E xtens ions , Inc. C ontent United S ta tes OTCP K E XT I 14.2 - - - - - - -

F inancial Media G roup, Inc. Direct Marketing United S ta tes OTCB B FNGP 0.3 - - - - - - -

F luid Mus ic C anada, Inc. Media United S ta tes T S X T S X:FMN 35.0 5.3x 4.1x - - - - 3.1x

F rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 26.2 4.6x - - - - - 2.3x

G amania Digital E ntertainment Co. , Ltd. G aming T a iwan G T S M 6180 245.8 1.8x - 10.5x - 26.0x - 3.2x

G ameOn Co Ltd. G aming J apan T S E 3812 98.5 0.5x - 2. 0x - 9.7x - 1.3x

G eoS entric Oyj Mobile F inland HLS E GE O1V 62.7 8.9x - - - - - 6.1x

G iant Interactive G roup, Inc. G aming C hina NYS E GA 1,866.8 - - - - 1.8x 13.5x 0.4x

G igaMedia Ltd. G aming T a iwan NasdaqGS G IGM 321.5 1.3x 1.3x 5. 3x 5.9x 10.2x 10.5x 2.9x

G ravity C o. , Ltd G aming S outh K orea NasdaqGM GR V Y 32.8 - - - - - - -

G ree, Inc. S ocial Networking J apan T S E T S E : 3632 1,247.3 37.6x - - - - - 15.4x

G ungHo Online E nterta inment, Inc. Media J apan OS E 3765 187.1 1.4x - 7. 8x - - - -

HanbitS oft, Inc. G aming S outh K orea KOS E A047080 97.1 1.4x - - - - - 3.0x

IAC /InterActiveCorp. Media United S ta tes NasdaqGS IAC I 2,334.7 0.3x - 10.5x - 19.9x 30.5x 1.0x

IAS E nergy, Inc. V ideo C anada OTCB B IAS C .A 18.2 - - - - - - -

is eemedia Inc. C ontent C anada T S XV IE E 4.1 1.8x - - - - - 2.1x

J umbuck E ntertainment P ty L td. S ocial Networking Aus tra lia AS X AS X:J MB 15.9 0.8x - 2. 1x - 6.6x - 1.6x

J umpTV Inc. V ideo C anada T S X T S X:J T V 80.9 4.7x - - - - - 4.1x

K aboose Inc. C ontent C anada T S X T S X:K AB 75.9 1.1x 1.1x 9. 3x 5.7x - - -

K ingsoft C o. Ltd. G aming C hina S E HK 3888 783.0 6.2x - 15.9x - 20.3x - 4.7x

Lingo Media C orpora tion Learning C anada T S XV T S XV : LM 12.0 11.6x - - - - - 9.3x

LiveW orld Inc. S ocial Networking United S ta tes OTCP K LVWD 2.2 0.1x - - - - - 0.9x

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

Magnitude Information S ys tems Inc. S ocial Networking United S ta tes OTCB B MAGY 4.6 - - - - - - -

Mixi, Inc. S ocial Networking J apan T S E 2121 761.4 5.1x - 14.3x - 37.5x - 5.6x

Modern T imes G roup Mtg AB Media S weden OM MTG B 1,938.6 1.4x 1.4x 9. 1x 11.0x 5.6x 12.8x -

Moggle, Inc G aming United S ta tes OTCB B MMOG 83.5 - - - - - - -

MOKO .mobi L imited S ocial Networking Aus tra lia AS X MK B 4.1 2.6x - - - - - 3.1x

Myriad G roup AG Mobile S witzerland S W X MYR N 118.0 3.3x - - - - - 5.3x

NE OW IZ G ames Corporation G aming S outh K orea KOS E A095660 598.5 3.0x - 11.0x - 35.6x - 18.0x

NetDragon W ebS oft, Inc. G aming C hina S E HK 777 371.6 2.7x - 6. 8x - 13.3x - 2.0x

Netease.com Inc. G aming C hina NasdaqGS NT E S 4,030.0 - - - - 2.4x 14.7x 0.7x

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

Ngi G roup Inc. Media J apan T S E 2497 44.3 - - - - 12.5x - 0.7x

Northgate T echnologies L imited Direct Marketing India B S E 590057 27.3 0.2x - 1. 1x - 1.7x - -

Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 1,657.6 2.2x 2.0x 8. 7x 7.5x 25.9x - -

Openwave S ys tems Inc. Mobile United S ta tes NasdaqGS OPWV 149.1 0.2x 0.2x - 2.6x - 28.9x 2.1x

P erfect W orld C o. , Ltd. G aming C hina NasdaqGS PWR D 1,020.3 - - - - 1.6x 8.7x 0.6x

P hotoC hannel Networks Inc. Digita l Imaging C anada T S XV T S XV :P N 52.0 2.6x 1.8x - 5.4x - 11.5x 21.5x

Quepasa C orp. S ocial Networking United S ta tes NasdaqCM QP S A 12.2 - - - - - - -

OAO R B C Information S ys tems Media R uss ia R T S R B C I 173.4 0.0x - 0. 3x - - - -

S handa Interactive E nterta inment Ltd. G aming C hina NasdaqGS S NDA 3,811.2 0.3x 1.5x 0. 6x 3.3x 3.2x 17.4x 1.5x

S hutterfly, Inc. Digita l Imaging United S ta tes NasdaqGS S FLY 359.7 1.4x - 10.4x 7.9x - 99.2x 2.1x

S K Communications Co. , Ltd. S earch S outh K orea KOS E A066270 336.5 1.8x - 28.0x - - - -

S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 8.1 2.0x - 7. 2x - 12.4x - 4.8x

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

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

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

S ohu.com Inc. G aming C hina NasdaqGS S OHU 2,075.4 3.7x 3.2x 8. 5x 7.4x 11.7x 14.9x 5.6x

S itesea rch Corpora tion S ocial Networking United S ta tes OTCB B S T P C 28.2 - - - - - - 40.1x

S park Networks , Inc. S ocial Networking United S ta tes AME X LOV 46.3 0.9x - 4. 0x - 14.2x - -

S pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 19.5 - - - - - - 51.0x

T encent Holdings Ltd. P orta l C hina S E HK 700 18,192.6 16.4x - 34.1x - 43.7x - 18.3x

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

T he9 L imited G aming C hina NasdaqGS NCTY 240.6 - - - - 0.7x 9.8x 0.1x

T heS treet.com, Inc. Media United S ta tes NasdaqGM TS CM 58.2 - - - - - - 0.7x

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

T ree.C om, Inc. P orta l United S ta tes NasdaqGM T R E E 131.7 0.6x 0.5x - 6.5x - - 1.7x

Uniserve C ommunications Corp. S ocial Networking C anada T S XV T S XV :US S 1.1 0.2x - - - - - -

United Online Inc. Media United S ta tes NasdaqGS UNTD 548.3 1.0x 0.8x 4. 7x 3.4x - 9.1x -

UOMO Media , Inc Media C anada OTCB B UOMO 28.3 45.0x - - - - - -

V a lueC lick Inc. Media United S ta tes NasdaqGS VCLK 872.3 1.3x 1.4x 7. 3x 5.6x - 15.9x 7.1x

VO IS , Inc. S ocial Networking United S ta tes OTCB B VOIS 7.5 - - - - - - 16.9x

W ebzen Inc. G aming S outh K orea NasdaqGM WZE N 53.8 - - - - - - 0.0x

W izzard S oftware Corporation P odcas ting United S ta tes AME X WZE 27.2 4.5x - - - - - -

W orlds .com Inc. C ontent United S ta tes OTCB B WDDD 7.9 - - - - 27.3x - -

W ynds torm C orporation C ontent United S ta tes OTCB B W YND 9.2 - - - - - - -

X ING AG S ocial Networking G ermany XT R A O1B C 240.4 3.6x - 11.4x - 22.8x - 7.8x

Y edangOnline Corp. G aming S outh K orea KOS E A052770 136.0 2.5x - 11.0x - 14.4x - 6.7x

Y nk K orea Inc. G aming S outh K orea KOS E A023770 15.6 1.0x - - - - - -

ZipLocal Inc. Directory C anada T S XV T S XV :ZIP 0.7 0.7x - - - - - -

High 18,192.6 46.8x 4.8x 34.1x 11.0x 43.7x 99.2x 51.0x

Low 0.0 0.0x 0.2x 0. 3x 2.6x 0.7x 8.7x 0.0x

Average 530.5 5.4x 1.7x 9.3x 6.1x 15.3x 19.9x 7.3x

Median 44.3 1.8x 1.4x 8. 3x 5.8x 12.4x 13.1x 3.1x

Figure 20. Valuation Comparison Source. Capital IQ


Summary by Country

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

United S tates 40 China 33,987.1 C hina 3,398.7 China 3,800.9 China 1,894.0 C hina 49.2%

Canada 11 United S ta tes 5,025.1 S weden 1,938.6 United S tates 3,795.9 S weden 275.1 Aus tralia 37.2%

China 10 J apan 2,376.9 T aiwan 514.1 S weden 1,796.0 United S tates 240.3 T aiwan 32.3%

S outh K orea 9 C anada 2,013.9 J apan 396.2 Canada 989.9 Canada 196.3 J apan 25.7%

J apan 6 S weden 1,938.6 C anada 183.1 S outh K orea 661.8 J apan 134.6 India 17.6%

Ta iwan 3 Ta iwan 1,542.2 R us s ia 173.4 J apan 522.2 T a iwan 98.9 Italy 16.0%

Aus tralia 2 S outh K orea 1,467.8 S outh K orea 163.1 Hong K ong 389.9 S outh K orea 79.3 S weden 15.3%

Germany 2 Germany 266.5 Hong K ong 151.7 T a iwan 374.1 Ita ly 37.9 Malays ia 13.7%

S witzerland 1 R us s ia 173.4 Ita ly 134.5 Ita ly 237.4 Hong K ong 30.8 R us s ia 13.1%

Hong K ong 1 Hong K ong 151.7 Germany 133.3 R us s ia 152.8 India 25.1 Hong K ong 7.9%

F inland 1 Ita ly 134.5 United S ta tes 125.6 India 142.5 R us s ia 20.0 S outh K orea 3.7%

Ita ly 1 S witzerland 118.0 S witzerland 118.0 Malays ia 79.3 Germany 13.1 S witzerland 1.9%

United K ingdom 1 F inland 62.7 F inland 62.7 Germany 58.7 Malays ia 10.9 United S ta tes -10.6%

India 1 India 27.3 India 27.3 S witzerland 40.0 Aus tralia 2.9 C anada -12.9%

S weden 1 Malays ia 26.8 Malays ia 26.8 Aus tralia 15.1 S witzerland 0.8 G ermany -14.7%

R us s ia 1 Aus tralia 20.0 Aus tralia 10.0 F inland 6.1 Norway -1.1 Norway -50.6%

Malays ia 1 United K ingdom 4.7 United K ingdom 4.7 Norway 2.1 United K ingdom -1.8 United K ingdom NA

Norway 1 Norway 0.1 Norway 0.1 United K ingdom 0.3 F inland -13.8 F inland NA

Grand Total 93 Grand Total 49,337.2 Grand Total 530.5 Grand Total 13,064.8 Grand Total 3,043.3 Grand Total 8.7%

Figure 21. Comparison by Country Source. Capital IQ


Summary by E xchange

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

OTCB B 20 S E HK 19,347.3 S E HK 6,449.1 OM 1,796.0 NasdaqGS 1,718.7 NY S E 61.9%

NasdaqGS 14 NasdaqGS 19,167.9 OM 1,938.6 NasdaqGS 481.4 S E HK 658.4 S E HK 42.1%

OTCP K 10 TS E 2,189.8 NY S E 1,866.8 S E HK 470.8 OM 275.1 AS X 37.2%

KOS E 7 OM 1,938.6 NasdaqGS 1,369.1 CM 237.4 NY S E 144.6 G TS M 36.3%

TS E 5 NY S E 1,866.8 GT S M 610.3 NY S E 233.6 T S E 113.5 Nas daqG S 29.7%

NasdaqGM 5 KOS E 1,381.3 T S E 438.0 R T S 152.8 KOS E 72.2 T S E 27.2%

TS XV 5 GT S M 1,220.7 KOS E 197.3 B S E 142.5 GT S M 52.8 OS E 17.8%

TS X 4 OTCB B 394.0 OS E 187.1 OS E 118.5 CM 37.9 B S E 17.6%

S E HK 3 NasdaqGM 298.3 R TS 173.4 GT S M 91.9 B S E 25.1 CM 16.0%

AME X 2 TS X 274.8 CM 134.5 KOS E 85.6 OS E 21.1 OM 15.3%

XTR A 2 XTR A 266.5 XTR A 133.3 NasdaqGM 81.1 R T S 20.0 K LS E 13.7%

AS X 2 OS E 187.1 S W X 118.0 T S E 80.7 XTR A 13.1 R TS 13.1%

GT S M 2 R TS 173.4 T S X 68.7 K LS E 79.3 K LS E 10.9 K OS E 2.3%

S WX 1 CM 134.5 HLS E 62.7 T S X 40.9 AME X 5.8 S WX 1.9%

HLS E 1 S WX 118.0 NasdaqGM 59.7 S W X 40.0 AS X 2.9 Nas daqGM 1.6%

NY S E 1 OTCP K 81.0 AME X 36.8 AME X 30.2 S W X 0.8 T S XV 1.3%

CM 1 AME X 73.5 B S E 27.3 XTR A 29.3 OTCNO -1.1 OTCB B -5.3%

B S E 1 TS XV 70.0 K LS E 26.8 OTCP K 19.0 T S X -1.5 T S X -13.5%

NasdaqCM 1 HLS E 62.7 OTCB B 19.7 T S XV 9.5 AIM -1.8 XT R A -14.7%

OS E 1 B S E 27.3 T S XV 14.0 AS X 7.6 NasdaqGM -8.0 AME X -38.3%

AIM 1 K LS E 26.8 NasdaqCM 12.2 HLS E 6.1 T S XV -9.3 OTCP K -42.1%

OM 1 AS X 20.0 AS X 10.0 OTCNO 2.1 NasdaqCM -10.8 OTCNO -50.6%

R T S 1 NasdaqCM 12.2 OTCP K 8.1 OTCB B 2.1 HLS E -13.8 HLS E NA

K LS E 1 AIM 4.7 AIM 4.7 AIM 0.3 OTCP K -33.1 AIM NA

OTCNO 1 OTCNO 0.1 OTCNO 0.1 NasdaqCM 0.1 OTCB B -50.1 Nas daqCM NA

Grand Total 93 Grand Total 49,337.2 Grand Total 530.5 Grand Total 13,064.8 Grand Total 3,043.3 Grand Total 8.7%

Figure 22. Comparison by Exchange Source. Capital IQ

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

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

Mar-09 Kaixin001.com China 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

OMGPOP US A 5.0 5.0

Apture US A 4.1 4.1

S imulmedia US A 4.0 4.0

Tynt Canada 3.9 3.9

AnySource Media US A 3.2 3.2

Pixazza US A 3.1 3.1

B it.ly US A 2.0 2.0

Hunch US A 2.0 2.0

Sports Compos ite DE US A 2.0 2.0

AdultS pace US A 1.3 1.3

Myngle Netherlands 1.3 1.3

33Acros s 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 Radio F rance 16.0 16.0

Marin S oftware US A 13.0 13.0

The Rubicon 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

Viximo US A 5.0 5.0

DoubleTwis t US A 5.0 5.0

IMShopping US A 4.7 4.7

Socialtext US A 4.5 4.5

Mixercast US A 4.1 4.1

SoundC loud Germany 3.3 3.3

TubeMogul US A 3.0 3.0

Tribal Nova Canada 2.5 2.5

Tripbase US A 2.0 2.0

Socialcast US A 1.4 1.4

B randtology 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 15.6 8.0 45.3 52.5 16.1 12.0 149.5

May-09 One Net Entertainment China 10.0 10.0 20.0

Cyberplex Canada 12.9 12.9

Imeem US A 8.8 8.8

EveryZing US A 8.3 8.3

B logHer Inc . US A 7.0 7.0

Gis t US A 6.8 6.8

Fuhu Inc . US A 6.3 6.3

Azuki S ys tems US A 6.0 6.0

I Love R ewards Canada 5.9 5.9

TimeB ridge US A 5.0 5.0

DocuS ign US A 5.0 5.0

OLX US A 5.0 5.0

Medialets US A 4.0 4.0

Resonate Networks US A 2.0 2.0

VoxPop US A 1.5 1.5

Mo'Minis Is rael 1.5 1.5

Loop'd Network US A 0.8 0.8

May-09 Total 13.6 10.0 22.9 16.3 18.7 20.3 5.0 106.6

Grand Total 30.5 19.3 23.5 102.7 121.4 79.4 29.0 10.0 415.6

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

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

Company HQ Webs ite Des cription

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

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

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

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

in R edwood City, Ca lifornia .

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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