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www.mackieresearch.com

Web 2.0 Weekly

Financing on pace for record month

Copyright 2000-2010, Mackie Research Capital Corporation, All rights reserved

April 27, 2010

David Shore, CFA, MBA [email protected]

Damian Wojcichowsky, CFA 416.860.7652

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.www.mackieresearch.com

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www.mackieresearch.com2

Key Developments (past week)

Deals (M&A, Finance) Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142

mm. Warner Bros. acquired gaming company, Turbine, for $160 mm. Diapers.com, internet retailer, received $20 mm in funding (lifetime financing total = $59

mm).

Financial Results/Guidance

Points International Ltd. (TSX:PTS) revised 2010 revenue guidance. The companyexpects 2010 revenue in the range of $85-$95 mm (following on a prior guidanceincrease from $60-$70 mm to $75-$85 mm).

CDC Corp. (NasdaqGS:CHIN.A) announced preliminary Q1/10 application sales toincrease by approximately 14% to $8.2 mm from $7.2 mm in Q1/09. Total Non-GAAPrecurring revenue (which CDC defines as Non-GAAP maintenance plus SaaS revenue)

is expected to increase by ~13% to $27.4 mm in Q1/10 from $24.2 mm in Q1/09. Firstquarter 2010 license revenue is expected to be $7.9 mm, and Total Contract Value fornew SaaS contracts secured in the quarter is expected to be about $300,000.

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Key Developments cont.

Financial Results cont.

Company

Fiscal Period

(ended) Revenue (current/prior year) Y/Y % EPS (current/prior year) Y/Y %Modern Times Group Mtg AB (OM:MTG B) Q1/10 (Mar. 2010) SEK 3,524mm (SEK 3,336mm) 5.6% SEK 4.60 (SEK 2.19) 110.0%

Multipl ied Media Corporation (TSXV:MMC) F2009 (Dec. 2009) $288,537 ($69,768) 313.6% ($0.04) (loss $0.011) NM

The New York Times Company (NYSE:NYT) Q1/10 (Mar. 2010) $587.9mm ($607.1mm) -3.2% $0.08 (loss $0.52) NM

Frogster Interactive Pictures AG (XTRA:FRG) F2009 (Dec. 2009) 14.7mm NA 0.96 per share NA

Sohu.com Inc. (NasdaqGS:SOHU) Q1/10 (Mar. 2010) $129.5mm ($115.6mm) 12.0% $0.73 NA

Changyou.com Limited (NasdaqGS:CYOU) Q1/10 (Mar. 2010) $72.0mm ($61.6mm) 16.9% $0.80 per ADS ($0.72 per ADS) 11.1%

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Public Company Data

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Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min# Companies 99 - - -

Market Cap (US$ mm) 86,002.5 80.2 38,752.5 1.7

Revenue (US$ mm) 22,695.3 60.4 3,257.4 0.0

1 Year revenue growth 4.8% 1178.9% -91.4%

EBITDA as % of revenue - 11.4% 67.7% -91.9%

Net cash (US$ mm) 8,270.2 1.2 1,754.9 -732.7TEV/Revenue - 2.0x 45.2x 0.1x

TEV/EBITDA - 9.6x 46.2x 0.1x

P/E - 14.8x 76.6x 0.0x

Relative to 52 week high -29.5% 5.6% -98.1%

Source: CapitalIQ

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Public Company Distribution

27

16

10

76

5

3 3 3 32 2 2 2

1 1 1 1 1 1 1 1

0

5

10

15

20

25

30

Gaming

SocialNetworking

Media

Diversified

Marketing

Mobile

Infrastructure

SMS/Voice

Enterprise

Advertising

InternetRetail

VirtualWorld

Dating

Music

Ve

rticalCommunities

Collaboration

Podcasting

Learning

Video

Search

Payment

FinancialServices

By Sector By Country

0

5

10

15

20

25

30

35

40

45

UnitedStates

Canada

China

SouthKorea

Japan

Taiwan

Germany

Australia

Un

itedKingdom

HongKong

Poland

Russia

Finland

Sweden

Malaysia

India

Italy

Switzerland

Israel

Source: CapitalIQ

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Valuation Dashboard 1 Week

Rising

58%

Falling

31%

Flat

11%

Rising

65%

Falling31%

Flat4%

Rising

73%

Falling

25%

Flat

2%

Market Cap

Rising

73%

Falling27%

Flat

0%

EV/Revenue

EV/EBITDA P/E

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Median EV/Revenue

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

3/9/2009

3/16/2009

3/23/2009

3/30/2009

4/6/2009

4/13/2009

4/20/2009

4/27/2009

5/4/2009

5/11/2009

5/18/2009

5/25/2009

6/1/2009

6/8/2009

6/15/2009

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

4/26/2010

373838393939404039424243444545444546484949485051545558585860636363626363676867697168646969697172747776797777787779818381

Multiple(x)

Median Long-term average

# companies

Source: CapitalIQ

Revenue multiplesrecovering but

below LT Average

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Median EV/EBITDA

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

3/9/2009

3/16/2009

3/23/2009

3/30/2009

4/6/2009

4/13/2009

4/20/2009

4/27/2009

5/4/2009

5/11/2009

5/18/2009

5/25/2009

6/1/2009

6/8/2009

6/15/2009

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

4/26/2010

212020222223232222242423232424262626262525262628282930333436393738373839373737404139404141404142454443494948505050494846

Multiple(x)


# companies

Source: CapitalIQ

EV/EBITDA multiplesremain depressedbelow LT average

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Median P/E

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

3/9/2009

3/16/2009

3/23/2009

3/30/2009

4/6/2009

4/13/2009

4/20/2009

4/27/2009

5/4/2009

5/11/2009

5/18/2009

5/25/2009

6/1/2009

6/8/2009

6/15/2009

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

4/26/2010

171919191818191919202019181919202021252425252526262729302930313032343536363636373839373737363536323130333333333333333231

Multiple(x)


# companies

Source: CapitalIQ

P/E multiples alsobelow LT average

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Average Valuation by Sector

-

5.0

10.0

15.0

20.0

25.0

Infrastructure

Diversified

SMS/Voice

SocialNetworking

Music

VerticalCommunities

Mobile

Marketing

Learning

Gaming

Podcasting

Collaboration

Search

Advertising

Video

InternetRetail

Enterprise

Dating

Media

FinancialServices

VirtualWorld

2 6 3 7 2 1 4 5 1 21 1 1 1 3 1 2 3 2 9 1 1# Companies

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Search

Enterprise

Diversified

Mobile

Media

Collaboration

InternetRetail

SocialNetworking

Gaming

FinancialServices

Marketing

Dating

Advertising

1 2 5 1 6 1 2 5 13 1 3 1 1# Companies

EV/Revenue EV/EBITDA

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EV/Revenue Ranking

0.20.20.40.40.40.50.50.50.60.60.70.70.70.80.80.80.90.91.0 1.0 1.0 1.0 1.2 1.2 1.2 1.3 1.3 1.3 1.4 1.4 1.5 1.6 1.6 1.7

1.92.02.02.22.22.32.32.32.42.42.6 2.72.93.03.13.23.2

3.4 3.54.34.8

5.0 5.15.55.75.8

6.46.67.8

9.110.3

12.012.013.4

15.4

18.119.5

23.3

30.7

44.145.2

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

NgiGroupInc.

CyberplexInc.

JumbuckEntertainmentLimited

R

ealNetworksInc.

Tree.Com,Inc.

GameOnCoLtd.

Ac

tozSoftCo.,Ltd.

UniserveCommunicationsCorp.

GigaMediaLtd.

GluMobile,Inc.

OpenwaveSystemsInc.

NorthgateTec

hnologiesLimited

DADASpA

Points

InternationalLtd.

InternetGroupSA

IAC

/InterActiveCorp.

AOL,Inc.

CDCCorp.

U

nitedOnline,Inc.

CornerW

orldCorporation

TheNewYorkTimesCompany

Th

eStreet.com,Inc.

BeyondCommerce,Inc.

OAORBCInformationSystems

AQInteractive,Inc.

HutchisonTelecom

municationsHong

HanbitSoft,Inc.

infoGROUP,Inc.

GamaniaDigitalEntertainmentCo.,Ltd.

Spa

rkNetworks,Inc.

YDOnlineCorp.

ValueClick,Inc.

NetDragonWebSoft,Inc.

YnkKoreaInc.

ScoreMediaInc.

Shutterfly,Inc.

SNA

PInteractive,Inc.

PN

IDigitalMediaInc.

OrientedMediaGroupBerhad

XINGAG

VeltiPlc

UOMOMedia,Inc

ModernTim

esGroupMtgAB

NeuLionIncorporated

WebzenInc.

GungHoOnlineEntertainment,Inc.

Sohu.comInc.

SKCommunicationsCo.,Ltd.

MyriadGroupAG

OpenTextCorp.

NEOWIZG

amesCorporation

WizzardSoftw

areCorporation

iseemediaInc.

TaleoCorp.

LingoM

ediaCorporation

DigitalPostInteractive,Inc.

Web

MediaBrandsInc

KingsoftCorporationLimited

Accelerize

NewMedia,Inc.

Chan

gyou.comLimited

Un

ilavaCorporation

Mixi,Inc.

FrogsterIntera

ctivePicturesAG

FluidM

usicCanada,Inc.

Gree,Inc.

T

ransGaming,Inc.

HUGHE

STelematics,Inc.

ChineseGamerInternational

GeoSentricOyj

PaidInc.

MOKO.mobiLimited

TencentHoldingsLtd.

BrightThingsplc

SpectrumDNA,Inc.

NeX

ploreCorporation

Source: CapitalIQ

NeXplore has highestrevenue multiple at 45.2x

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EV/EBITDA Ranking

1.9 2.0 2.7 2.74.7 5.1 5.7 5.7

6.7 6.9 6.9 7.0 7.6 7.88.0 8.4 8.4 8.9

9.3 9.8 10.111.111.911.912.0

12.3 13.213.9 14.614.9

15.116.3 17.2

17.5

21.7

24.7

32.4

35.1

45.5 46.2

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

CyberplexInc.

GameOnCoLtd.

AOL,Inc.

ActozSoftCo.,Ltd.

UnitedOnline,Inc.

HutchisonTelecomm

unicationsHongKongHoldings

Ltd.

ValueClick,Inc.

T

heNewYorkTimesCompany

Sohu.comInc.

SparkNetworks,Inc.

DADASpA

YDOnlineCorp.

infoGROUP,Inc.


CDCCorp.

XINGAG


PNIDigitalMediaInc.

Changyou.comLimited

Tree.Com,Inc.

U

niserveCommunicationsCorp.

VeltiPlc

ScoreMediaInc.

OpenTextCorp.

NEOWIZGamesCorporation

Gun

gHoOnlineEntertainment,Inc.


IAC/InterActiveCorp.

HanbitSoft,Inc.

Shutterfly,Inc.

OpenwaveSystemsInc.

YnkKoreaInc.

ModernTimesGroupMtgAB

Gree,Inc.

Mixi,Inc.


TaleoCorp.

TheStreet.com,Inc.

TencentHoldingsLtd.


Excluding EV/EBITDA > 100xSource: CapitalIQ

SK Communications leadsthe group at 46.2x

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P/E Ranking

2.0 2.1 2.64.4 5.7

6.6 8.510.6 11.0 11.7 12.1 12.4

14.3 14.8 15.418.5 18.9 20.6

22.6 24.525.7

32.034.5 35.3

40.9

57.7 58.9

69.3

76.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Shanda

InteractiveEntertainmentLtd.

GiantInteractiveGroup,Inc.

Netease.comInc.

JumbuckEntertainmentLimited

CyberplexInc.

GigaMediaLtd.

YDOnlineCorp.

DADASpA

UnitedOnline,Inc.

GameOnCoLtd.

AOL,Inc.

Changyou.comLimited

ValueClick,Inc.

Sohu.comInc.

HutchisonTelecomm

unicationsHongKongHoldings

Ltd.


T

heNewYorkTimesCompany

CDCCorp.

VeltiPlc




Gree,Inc.


OpenTextCorp.

Mixi,Inc.

TencentHoldingsLtd.

Gun

gHoOnlineEntertainment,Inc.

HanbitSoft,Inc.

Source: CapitalIQ

HanbitSoft has thehighest P/E at 76.6x

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Total Market Capitalization - $80 BN

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

5/4/2009

5/11/2009

5/18/2009

5/25/2009

6/1/2009

6/8/2009

6/15/2009

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

4/26/2010

94 95 95 94 95 95 95 95 95 95 95 95 95 95 95 95 95 95 94 95 95 95 95 95 95 95 95 95 96 96 98 98 98 98 98 98 98 98 98 98 98 98 99 99 99 99 99 99 99 99 99 99

(US$m)

# companies

Source: CapitalIQ

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Total Market Cap by Sector

-

5,000.0

10,000.0

15,000.0

20,000.0

25,000.0

30,000.0

35,000.0

40,000.0

45,000.0

50,000.0

Diversified

Ga

ming

M

edia

SocialNetwo

rking

Collaboration

Mark

eting

Enterprise

InternetRetail

Search

M

obile

SMS/Voice

FinancialServices

M

usic

Video

D

ating

VirtualWorld

Advertising

VerticalCommu

nities

Pay

ment

Infrastructure

Podca

sting

Lea

rning

7 27 10 16 1 6 3 2 1 5 3 1 2 1 2 2 3 1 1 3 1 1# Companies

27 Gaming companies totalingover $17b in market cap

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Market Cap Ranking

0

1,000

2,000

3,000

4,000

5,000

6,000

BroadWebAsiaInc.

MobileDataCorp.

UOMOMedia,Inc

CornerWorldCorporation

UniserveCommunicationsCorp.

BeyondCommerce,Inc.

En2GoInternational,Inc.

Kiwibox.Com,Inc.

DigitalPostInteractive,Inc.

Worlds.comInc.

Ke

ntInternationalHoldingsInc.

O

rientedMediaGroupBerhad

SpectrumDNA,Inc.

RealValueEstates,Inc.

BrightThingsplc

LingoMediaCorporation

SaharaMediaHoldings,Inc.

SNAPInteractive,Inc.

iseemediaInc.

MOKO.mobiLimited

Ju

mbuckEntertainmentLimited

IASEnergy,Inc.

VOIS,Inc.

InternetGroupSA

No

rthgateTechnologiesLimited

WizzardSoftwareCorporation

NeXploreCorporation

AccelerizeNewMedia,Inc.

LookSmart,Ltd.

DolphinDigitalMedia,Inc.

YnkKoreaInc.

AsknetAG

Socialwise,Inc.

MultipliedMediaCorporation

WebMediaBrandsInc

CyberplexInc.

TransGaming,Inc.

GluMobile,Inc.

UnilavaCorporation

DigitalTown,Inc.

GeoSentricOyj

QuepasaCorp.

PNIDigitalMediaInc.

GravityCo.,Ltd

ScoreMediaInc.

FrogsterInteractivePicturesAG

SparkNetworks,Inc.

NgiGroupInc.

Moggle,Inc

NeuLionIncorporated

HanbitSoft,Inc.

YDOnlineCorp.

PaidInc.

PointsInternationalLtd.

DADASpA

FluidMusicCanada,Inc.

Tree.Com,Inc.

AQInteractive,Inc.

GameOnCoLtd.

ActozSoftCo.,Ltd.

TheStreet.com,Inc.

WebzenInc.

GigaMediaLtd.

The9Limited

XINGAG

MyriadGroupAG

VeltiPlc

OA

ORBCInformationSystems

OpenwaveSystemsInc.



CDCCorp.

HUGHESTelematics,Inc.

Gung

HoOnlineEntertainment,Inc.

infoGROUP,Inc.

RealNetworksInc.


Shutterfly,Inc.


UnitedOnline,Inc.

ValueClick,Inc.


HutchisonTelecommunicationsHongKongHoldings


Mixi,Inc.

TaleoCorp.

Th

eNewYorkTimesCompany

PerfectWorldCo.,Ltd.

GiantInteractiveGroup,Inc.

Changyou.comLimited

Sohu.comInc.

OpenTextCorp.

IAC/InterActiveCorp.

Gree,Inc.

AOL,Inc.

ShandaInteractiveEntertainmentLtd.

ModernTimesGroupMtgAB

Netease.comInc.

TencentHoldingsLtd.

Source: CapitalIQ

Tencents $39 bn market capdominates group

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Price Performance 1 week

Rising53%

Flat13%

Falling

34%

Price Momentum Positive momentum, with 66% of stocks

rising or flat over past week.

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Average Price Performance 1 Week, By Sector

28.0%

16.6%

13.2%12.8%

7.7%6.3%

4.9%3.6% 3.5% 3.4% 2.5% 2.4% 1.3% 0.9%

-0.3% -0.8% -1.5%-1.8% -4.3% -4.7%

-6.1%

-12.3%-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Dating

Search

S

MS/Voice

Enterprise

Video

Vertical

Co

mmunities

InternetRetail

Gaming

P

odcasting

Payment

Marketing

Social

Networking

Co

llaboration

Financial

Services

VirtualWorld

Media

Music

Mobile

Infrastructure

Diversified

Advertising

Learning

# companies

Source: CapitalIQ

Dating showsbiggest gains

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Price Performance 1 Week

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

BWBA

NXPC

SHHD

BYOC

SPXA

TSXV:MMC

TSXV:LM

A047080

IASC.A

KOSE:A069

TSX:CX

PAYD

UNLA

LOV

DB:M0C

NYT

CM:DA

ACLZ

RBCI

OMEDIA

TSX:FMN

DGTW777

3812

A023770

MKB

A095660

NCTY

2497

KNTHIACI

FRG

VCLKGA

KIWB

GEO1V

MYRN

CWRL

AIM:BGT

ETGI

RVLU

TSX:SCR

UOMO

WDDD

WSE:IGR

TSXV:TNG

ASX:JMB

O1BC

PWRD

CHIN.A

MBYL

TREE

OTEX

590057

TLEO

SEHK:215

SNDA

IUSA

A052770

GRVY

2121

XTRA:A5A

RNWK

3888

GIGM

SCLW

WZE

TSE:3632

OPWV

TSXV:PN

AOL

SFLY

UNTD700

MTGB

SOHU

DPDM

WEBM

NTES

CYOU

GTSM:3083

TSX:NLNVEL

QPSAIEE

6180

TSCM

DGLP

A052790

LOOK

3765

A066270

3838

VOIS

TSX:PTS

HUTC

GLUU

TSXV:USS

STVI

Source: CapitalIQ

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Price Performance (Top 10)

1 Month

0%

50%

100%

150%

200%

250%

300%

IASEnergy,Inc.

Beyond

Commerce,Inc.

AQInteractive,

Inc.

DigitalTown,Inc.

GluMobile,Inc.

Uniserve

Communications

Corp.

VOIS,Inc.

InternetGroup

SA

GungHoOnline

Entertainment,

Inc.

HUGHES

Telematics,Inc.

3 Month

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

OAORBC

Information

Systems

DigitalTown,

Inc.

IASEnergy,

Inc.

Beyond

Commerce,

Inc.

Unilava

Corporation

SNAP

Interactive,

Inc.

NgiGroup

Inc.

Oriented

Media

Group

Berhad

AQ

Interactive,

Inc.

Shutterfly,

Inc.

6 Month

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

OAORBC

Information

Systems

AQInteractive,

Inc.

QuepasaCorp.

Uniserve

Communications

Corp.

VOIS,Inc.

SK

Communications

Co.,Ltd.

OrientedMedia

GroupBerhad

SNAP

Interactive,Inc.

VeltiPlc

NgiGroupInc.

1 Year

0%

1000%

2000%

3000%

4000%

5000%

6000%

7000%

OAORBC

Information

Systems

QuepasaCorp.

TransGaming,

Inc.

VOIS,Inc.

AQInteractive,

Inc.

Uniserve

Communications

Corp.

DigitalPost

Interactive,Inc.

FluidMusic

Canada,Inc.

CDCCorp.

GluMobile,Inc.

Source: CapitalIQ

8/9/2019 Web 2.0 Weekly - April 27, 2010

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Price Performance (Bottom 10)

1 Week

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

WebzenInc.

IASEnergy,

Inc.

HanbitSoft,Inc.

LingoMedia

Corporation

Multiplied

Media

Corporation

SpectrumDNA,

Inc.

Beyond

Commerce,

Inc.

SaharaMedia

Holdings,Inc.

NeXplore

Corporation

BroadWebAsia

Inc.

1 Month

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

LingoMedia

Corporation

MobileData

Corp.

Multiplied

Media

Corporation

UOMOMedia,

Inc

SpectrumDNA,

Inc.

SaharaMedia

Holdings,Inc.

NeXplore

Corporation

BroadWebAsia

Inc.

En2Go

International,

Inc.

CornerWorld

Corporation

6 Month

-100.0%

-90.0%

-80.0%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

DADASpA

Northgate

Technologies

Limited

LingoMedia

Corporation

CyberplexInc.

NeXplore

Corporation

CornerWorld

Corporation

En2Go

International,

Inc.

UOMOMedia,

Inc

BroadWebAsia

Inc.

SaharaMedia

Holdings,Inc.

1 Year

-120.0%-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

Northgate

Technologies

Limited

Wizzard

Software

Corporation

CyberplexInc.

MobileData

Corp.

UOMOMedia,

Inc

CornerWorld

Corporation

En2Go

International,

Inc.

SaharaMedia

Holdings,Inc.

Beyond

Commerce,

Inc.

BroadWebAsia

Inc.

Source: CapitalIQ

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Capital Market Activity (Financing, M&A)

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Financing Momentum

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Oct-04

Dec-04

Feb-05

Apr-05

Jun-05

Aug-05

Oct-05

Dec-05

Feb-06

Apr-06

Jun-06

Aug-06

Oct-06

Dec-06

Feb-07

Apr-07

Jun-07

Aug-07

Oct-07

Dec-07

Feb-08

Apr-08

Jun-08

Aug-08

Oct-08

Dec-08

Feb-09

Apr-09

Jun-09

Aug-09

Oct-09

Dec-09

Feb-10

Apr-10

(US$m

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

(US$m

)

Total (LTM) Average Size (LTM)

Sharp rise drivenby large DSTtransactions

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Financing activity Current MonthMonth Company Name Country Sector Angel/Seed Debt f inancing PIPE Series A Series B Series C Series D Grand Total

Apr-10 Digital Sky Technologies Russia Diversified 300.0 300.0

Groupon USA Social Commerce 135.0 135.0

Vidyo USA Video 25.0 25.0

LendingClub USA Financial Services 24.5 24.5

MokaFive USA Enterprise 21.0 21.0

Diapers.com USA Internet Retail 20.0 20.0

BlackArrow USA Advertising 20.0 20.0

Xobni USA Social Netw orks 16.2 16.2

Box.net USA Collaboration 15.0 15.0

Prosper.com USA Financial Services 14.6 14.6

Knewton USA Online Learning 12.5 12.5

Brightcove USA Video 12.0 12.0

EdgeCas t CDN USA Media 10.0 10.0

Tynt Canada Infrastructure 8.0 8.0

PubMatic USA Advertising 7.5 7.5

Overtone USA Analytics 7.0 7.0

Searchandise Commerce USA Advertising 7.0 7.0

OpenSky USA Social Commerce 6.0 6.0

Stitcher USA Media 6.0 6.0

Cramster USA Vertical Communities 6.0 6.0

quirky USA Social Netw orks 6.0 6.0

58.com China Classif ied 5.8 5.8

Networked Insights USA Analytics 5.0 5.0

Tumblr USA Social Netw orks 5.0 5.0

TellApart USA Analytics 4.8 4.8

Wildfire USA Advertising 4.0 4.0

Daily Grommet USA Social Commerce 3.4 3.4

gdgt USA Vertical Communities 3.2 3.2

TweetPhoto USA Micromedia 2.6 2.6

Assistly USA Enterprise 2.2 2.2

Wibiya Israel Blog 2.0 2.0

Spredfast USA Analytics 1.6 1.6

FreshPlanet USA Gaming 1.5 1.5

ZoomSafer USA Mobile 1.0 1.0

NearVerse USA Location-based SNS 1.0 1.0

DIYSEO USA Search 1.0 1.0

Kontagent USA Analytics 1.0 1.0

Currensee USA Financial Services 0.8 0.8

MyLikes USA Advertising 0.6 0.6

Plyce France Location-based SNS 0.4 0.4

Apr-10 Total 4.0 20.0 300.0 29.1 47.8 298.7 26.6 726.1

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Financing activity Current Month, By Sector

Diversified

2% Gaming

7% Social

Commerce

7%

Crowdsourced

Content

2%

Media

7%

Video

9%

FinancialServices

7%Advertising

11%Social Networks

7%

Enterprise

5%

Internet Retail

2%

Analytics

11%

Collaboration

2%

Online Learning

2%

Vertical

Communities

9%

Infrastructure

2%

Classified

2%

Music

2%

Micromedia

2%

Other

48%

Diversified

26% Gaming

14%

Social

Commerce

12%

# Deals $ Raised

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Financing Activity last three months

12.5

4.65.5 5.5

8.9

6.4

10.2

12.5

9.18.2

5.4

18.2

5.8

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

(US$m)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

(US$m)

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

Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment

$426 mm ex-DST, averaging$15.2 mm per deal

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Capital Market Activity Ranking by Sector, last three months

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Diversified

Ga

ming

M

edia

V

ideo

Crowdsou

rced

Content

Soc

ial

Comm

erce

Advertising

Se

arch

Social

Netw

orks

Fina

ncial

Services

M

obile

InternetR

etail

Analytics

MobileAd

Enterprise

M

usic

Vertic

al

Communities

On

line

Learning

Mo

bile

Payment

Collabor

ation

Location-

based

SNS

VirtualW

orld

Microblog

Infrastructure

Widget

T

ravel

SMS/Voice

Blog

Classified

On

line

Cale

ndar

Microm

edia

OnlineD

ating

Aggreg

ation

1 8 6 11 5 4 17 8 10 8 6 3 7 2 2 3 7 2 1 1 4 3 2 3 1 3 1 2 1 1 1 1 1

(US$m)

# companies

Advertising has mostdeals in last 3 months

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Top 10 Deals (2010 YTD)

300.0

135.0

25.0 24.5 21.0 20.0 20.0 16.2 15.0 14.6

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

DigitalSky

Technologies

Groupon

Vidyo

LendingClub

MokaFive

Diapers.com

BlackArrow

Xobni

Box.net

Prosper.com

160

142

100

80

50

36.533

21 20 18

0

20

40

60

80

100

120

140

160

180

Turbine Jigsaw Ankeena

Networks

Mochi

Media

Aardvark StudioNow Saf-T-Net C&C

Media

Red 5

Studios,Inc.

Multicast

Media

Financings Acquisitions

DST involved in 2largest deals YTD

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Upcoming events/earnings

Source: CapitalIQ

Company Date Time Quarter Conf Call Details

AOL, Inc. (NYSE:AOL) 28-Apr-10 10:00 AM (EDT) Q1/10 http://ir.aol.com

CDC Corp. (NasdaqGS:CHIN.A) 28-Apr-10 9:00 AM (EDT) Q1/10

IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Apr-10 11:00 a.m. EST Q1/10 http://www.iac.com/InvestorsOpenwave Systems Inc. (NasdaqGS:OPWV) 28-Apr-10 2:00 PM (PDT) Q3/10 877-941-1427

Shutterfly, Inc. (NasdaqGS:SFLY) 28-Apr-10 2:00 PM (PDT) Q1/10 970-315-0490

Taleo Corp. (NasdaqGM:TLEO) 28-Apr-10 5:00 PM (EDT) Q1/10 www.taleo.com

Open Text Corp. (NasdaqGS:OTEX) 29-Apr-10 5:00 PM (EDT) Q3/10 800-814-4860

Tree.Com, Inc. (NasdaqGM:TREE) 30-Apr-10 11:00 a.m. EST Q1/10 866-564-7440

TheStreet.com, Inc. (NasdaqGM:TSCM) 5-May-10 4:30 PM (EST) Q1/10 866-770-7129, p/w 13839355

United Online, Inc. (NasdaqGS:UNTD) 5-May-10 2:30 PM (PST) Q1/10 888-510-1783, 3384050

RealNetworks Inc. (NasdaqGS:RNWK) 6-May-10 5:00 PM (EST) Q1/10 800-857-5305

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Public Company Listing cont.

Company Name Ticker Exchange

Trading

Currency HQ

Current

Price

US$ Market

Cap (mm) Employees

SK Communications Co., Ltd. A066270 KOSE KRW South Korea 16,500.00 618.3 NASNAP Interactive, Inc. STVI OTCBB USD United States 0.25 8.2 NA

Socialwise, Inc. SCLW OTCBB USD United States 0.60 29.1 3,997Sohu.com Inc. SOHU NasdaqGS USD China 52.77 1,993.0 155Spark Networks, Inc. LOV AMEX USD United States 3.48 71.6 NASpectrumDNA, Inc. SPXA OTCBB USD United States 0.10 6.5 916Taleo Corp. TLEO NasdaqGM USD United States 27.41 1,087.0 7,515Tencent Holdings Ltd. 700 SEHK HKD China 164.40 38,752.5 7,665The New York Times Company NYT NYSE USD United States 11.28 1,641.8 NAThe9 Limited NCTY NasdaqGS USD China 6.78 173.0 NATheStreet.com, Inc. TSCM NasdaqGM USD United States 3.95 124.6 28TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.75 42.0 700

Tree.Com, Inc. TREE NasdaqGM USD United States 9.22 101.5 39Unilava Corporation UNLA OTCBB USD United States 0.47 47.0 NAUniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.15 3.5 1,699United Online, Inc. UNTD NasdaqGS USD United States 8.56 740.8 NAUOMO Media, Inc UOMO OTCBB USD Canada 0.02 1.7 1,086ValueClick, Inc. VCLK NasdaqGS USD United States 10.07 818.9 450Velti Plc VEL AIM GBP United Kingdom 3.36 192.8 2VOIS, Inc. VOIS OTCBB USD United States 0.01 13.0 NAWebMediaBrands Inc WEBM NasdaqGS USD United States 1.06 39.7 NAWebzen Inc. KOSE:A069080 KOSE KRW South Korea 12,050.00 127.7 NA

Wizzard Software Corporation WZE AMEX USD United States 0.25 16.5 NAWorlds.com Inc. WDDD OTCBB USD United States 0.10 5.4 NAXING AG O1BC XTRA EUR Germany 27.40 191.6 NAYD Online Corp. A052770 KOSE KRW South Korea 6,380.00 85.6 NAYnk Korea Inc. A023770 KOSE KRW South Korea 3,195.00 22.8 -

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Disclaimer

RELEVANT DISCLOSURES APPLICABLE TO: NONE

1. None applicable.

ANALYST CERTIFICATION

Each analyst of Mackie Research Capital Corporation whose name appears in this reporthereby certifies that (i) the recommendations and opinions expressed in this researchreport accurately reflect the analysts personal views and (ii) no part of the researchanalysts compensation was or will be directly or indirectly related to the specificconclusions or recommendations expressed in this research report.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.Information about Mackie Research Capital Corporations Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categoriesis available on our web site at www.mackieresearch.com.The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Mackie Research CapitalCorporation assume any responsibility or liability. Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentionedherein. Contents of this report cannot be reproduced in whole or in part without the expressed permission of Mackie Research Capital Corporation. (U.S. Institutional Clients Research CapitalU.S.A. Inc. (a wholly owned subsidiary of Mackie Research Capital Corporation) accepts responsibility for the contents of this report subject to the terms & limitations set out above. Firms orinstitutions receiving this report should effect transactions in securities discussed in the report through Research Capital U.S.A. Inc., a Broker-Dealer Registered with the United States Securities andExchange Commission).

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