SOFTWARE & SERVICES 19 JANUARY 2010

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Damian Wojcichowsky, CFA (Associate), 416.860.7652

JANUARY FINANCING ACTIVITY PICKS UP

AF T ER A SL U GG I SH ST A RT , JA N UA R Y 201 0 S HO W S P ROM I S E O F AB O V E- A VE R AG E F U N DI NG L E V EL S
Deal flow improves for January. Total transaction value in the W eb 2.0 universe for January-to-date is $118.4
million, nearly double the total at the end of last week ($60.7 million). The number of financings stands at 13 (vs. 6
last week), averaging $9.1 million each (compared with $10.1 million last week). In comparison, total capital raised in
December was $450.4 million, averaging $12.9 million over 35 deals. November was $204.4 million, averaging $10.8
million (19 deals); and October was $176.1 million, averaging $5.9 million (30 deals).

Financing Activity Last Twelve Months

500.0 16.0

450.0 13.9
14.0
12.9
400.0

12.0

350.0 10.8

10.0
300.0 9.0 9.1
(US$m)

(US$m)
250.0 8.0
7.0 7.2
6.9
6.5
6.2
200.0 5.9
5.6 6.0

4.7
150.0

4.0

100.0

2.0
50.0

0.0 0.0
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10

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

Dec-09 includes $180m Zynga investment

Deal round-up for Januar y: The large deal (i.e. > $10 million in funding) highlights for the month include:

• Mochi Media – US-based game designer – was acquired by China-based Shanda Games for $80 million.

• Quantcast – a web analytics service – raised $27.5 million in its third round of financing.

• Visible Technologies – online brand management solutions developer – raised $22 million in Series D
financing.

• Guvera – Australian ad-based music distribution network – raised $20 million in its third round.

• Spiceworks – an ad-supported IT management software developer – raised $16 million in its third round of
financing.

This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
 Page 2

THE WEB 2.0 UNIVERSE

Eighty-seven public Web 2.0 companies: Our Web 2.0 universe contains 87 companies, with a combined market cap of
approximately $79 billion (Figure 1). The median market cap for the group is $65 million, with average trailing revenue of
$446 million (median $24 million). The companies are also generally profitable with a median EBITDA margin of 15.0%.
On a valuation basis, the overall average is 5.1x trailing revenue (median 2.0x) and 11.8x trailing EBITDA (median 9.5x).
Twenty-one of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 9/30/2009 AC LZ OT C B B US D United S ta tes 0. 65 18. 7 4. 1 (1.5) -36. 5% 5. 7x - 11
Actoz S oft C o. , Ltd. 9/30/2009 A052790 K OS E KR W S outh K orea 17,250 133. 6 121.7 27. 0 22. 2% 0. 8x 3. 4x NA
AQ Interactive, Inc. 9/30/2009 3838 TS E JPY J a pan 73,000. 00 43. 4 NM NM NM 0. 3x 5. 8x NA
As knet AG 9/30/2009 X T R A:A5A XT R A E UR G ermany 3. 15 22. 9 9, 526. 3 483.6 5.1% 0. 1x - NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 05 2.1 0. 1 (2.3) NM 36.0x - 3
B eta wave C orporation 9/30/2009 B W AV OT C B B US D United S ta tes 0. 16 4.7 8. 4 (14. 3) NM 0. 3x - 48
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D United S ta tes 0. 02 1.3 13. 5 (12. 4) -91. 9% 1. 0x - 86
B igs tring C orp. 9/30/2009 BS GC OT C B B US D United S ta tes 0. 02 1.5 0. 1 (1.0) NM 39.9x - 4
B right T hings plc 9/30/2009 AIM: B G T AIM GBP United K ingdom 0. 02 10. 6 0. 1 (3.6) NM - - 46
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 06 5.1 0. 0 (4.6) NM - - 46
C DC C orp. 9/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 71 286. 8 334.2 20. 0 61. 7% 6. 2x 10. 1x 628
C hangyou. com L imited 9/30/2009 C Y OU Na s daqG S US D C hina 34. 52 1,898. 6 255.3 157.4 61. 7% 6. 2x 10. 1x 628
C hines e G amer Interna tiona l 9/30/2009 G T S M: 3083 GTS M TWD T aiwa n 429. 00 1,133. 4 0. 0 (0.1) NM 15.1x 26. 0x NA
C ornerW orld C orpora tion 10/31/2009 CWR L OT C B B US D United S ta tes 0. 03 2.9 9. 2 NM NM 1. 3x - 16
C yberplex Inc. 9/30/2009 T S X :C X TS X C AD C anada 1. 14 75. 8 2, 135. 5 1, 239.2 58. 0% 0. 5x 4. 5x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 5. 63 131. 4 13. 2 NM NM 0. 8x 5. 8x NA
DigitalP os t Interactive, Inc. 9/30/2009 DG LP OT C B B US D United S ta tes 0. 04 3.1 1. 2 (0.9) -73. 8% 4. 4x - 7
DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 1. 40 38. 3 0. 0 (1.8) NM - - 3
Dolphin Digital Media , Inc. 9/30/2009 DP DM OT C B B US D United S ta tes 0. 27 15. 4 0. 3 (4.6) 11. 1% 0. 7x 5. 1x NA
DXN Holdings B hd 8/31/2009 DX N K LS E MY R Ma la ys ia 0. 70 46. 6 33. 9 3.8 11. 1% 0. 7x 5. 1x NA
E n2G o International, Inc. 8/31/2009 E TGI OT C B B US D United S ta tes 0. 90 21. 4 NM (2.4) NM - - NA
E olith C o. Ltd. 9/30/2009 A041060 K OS E KR W S outh K orea 715. 00 95. 8 0. 2 0.0 14. 4% 15.9x 33. 4x NA
F luid Mus ic C a nada , Inc. 9/30/2009 T S X :F MN TS X C AD United S ta tes 1. 65 100. 3 5. 6 (3.0) -54. 0% 16.5x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 19. 55 72. 1 8. 0 (4.3) -54. 0% 7. 5x - NA
G ama nia Digita l E ntertainment C o., Ltd. 9/30/2009 6180 GTS M TWD T aiwa n 61 292. 6 0. 2 (0.1) -47. 0% 1. 7x 10. 6x NA
G ameOn C o Ltd. 9/30/2009 3812 TS E JPY J a pan 76000. 00 80. 3 53. 6 8.8 16. 5% 0. 1x 0. 3x NA
G eoS entric O yj 9/30/2009 G E O 1V HL S E E UR F inland 0. 05 64. 6 10,207. 7 2, 398.7 23. 5% 14.8x - 118
G iant Interactive G roup, Inc. 9/30/2009 GA NY S E US D C hina 7. 47 1,691. 7 0. 5 (1.9) NM - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 3. 13 170. 6 183.6 NM NM 0. 6x - 751
G ravity C o., Ltd 9/30/2009 GR VY Na s daqG M US D S outh K orea 2 46. 7 0. 2 NM NM - - 469
G ree, Inc. 9/30/2009 T S E : 3632 TS E JPY J a pan 5,650 2,763. 2 651.5 230.7 35. 4% 13.0x 22. 3x NA
G ungHo O nline E ntertainment, Inc. 9/30/2009 3765 OS E JPY J a pan 217,700 272. 4 205.5 119.4 58. 1% 2. 0x 8. 9x NA
HanbitS oft, Inc. 9/30/2009 A047080 K OS E KR W S outh K orea 4000. 00 77. 1 9. 5 2.1 22. 3% 1. 1x - NA
IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 21. 33 2,814. 9 1, 359. 6 82. 4 42. 8% 0. 4x 0. 9x 79
InternetArray, Inc. 12/31/2006 INAR OT C P K US D United S ta tes 0. 00 0.0 5. 9 (4.0) 40. 2% 6. 8x 16. 9x 2, 271
is eemedia Inc. 9/30/2009 IE E T S XV C AD C anada 0. 19 9.6 1. 9 (4.3) NM 5. 3x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 31 13. 6 17. 5 7.5 42. 8% 0. 4x 0. 9x 79
K ings oft C o. Ltd. 9/30/2009 3888 S E HK HK D C hina 7. 10 1,004. 0 143.4 57. 7 40. 2% 6. 8x 16. 9x 2, 271
Lingo Media C orporation 9/30/2009 T S X V :LM T S XV C AD C anada 1. 45 17. 4 1. 4 (2.4) NM 12.4x - NA
LookS mart, Ltd. 9/30/2009 L OO K Na s daqG M US D United S ta tes 1. 07 18. 3 54. 0 (4.5) -8.4% - - 90
Magnitude Information S ys tems Inc. 9/30/2009 MAG Y OT C B B US D United S ta tes 0. 02 8.4 0. 1 (2.3) NM - - 14
Mixi, Inc. 9/30/2009 2121 TS E JPY J a pan 659,000 1,109. 3 136.3 45. 0 33. 0% 7. 2x 21. 7x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 355 3,294. 2 1, 963. 6 277.4 14. 1% 1. 9x 13. 8x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 13 13. 5 0. 7 (2.5) NM 17.3x - NA
Multiplied Media C orporation 9/30/2009 T S X V :MMC T S XV C AD C anada 0. 22 27. 9 0. 2 (4.8) NM - - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 98 213. 3 63. 0 3.4 5.4% 3. 3x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 38,950 722. 6 217.7 58. 5 26. 8% 3. 3x 12. 2x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4. 83 329. 1 91. 4 27. 8 30. 4% 2. 0x 6. 6x 2, 426
Neteas e. com Inc. 9/30/2009 NT E S Na s daqG S US D C hina 37. 31 4,828. 9 483.0 291.9 60. 4% - - 3, 109
NeuLion Incorporated 9/30/2009 T S X :NLN TS X C AD C anada 0. 70 78. 7 24. 9 (16. 1) -64. 5% 2. 5x - 237
NeXplore C orporation 9/30/2009 NX P C OT C P K US D United S ta tes 0. 55 30. 7 0. 5 NM NM - - NA
Ngi G roup Inc. 9/30/2009 2497 TS E JPY J a pan 24,190 32. 7 79. 8 3.1 3.9% - - NA
Northgate T echnologies L imited 9/30/2009 590057 BSE INR India 30. 10 22. 7 48. 2 (51. 7) NM 0. 5x - NA
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 40 194. 2 0. 0 (0.3) NM 0. 0x 0. 3x NA
O pen T ext C orp. 9/30/2009 OT E X Na s daqG S US D C anada 41. 57 2,343. 8 814.5 211.1 25. 9% 3. 0x 11. 4x 3, 900
O penwave S ys tems Inc. 9/30/2009 OP W V Na s daqG S US D United S ta tes 2. 33 194. 6 190.5 6.2 3.3% 0. 5x 14. 4x 590
P erfect W orld C o. , Ltd. 9/30/2009 PWRD Na s daqG S US D C hina 41. 99 2,089. 3 27. 9 0.9 3.3% 0. 4x 0. 8x 2, 096
P NI Digital Media Inc. 9/30/2009 T S X V :P N T S XV C AD C anada 1. 63 52. 9 1, 882. 7 1, 035.6 55. 0% 2. 1x 11. 9x NA
Q uepa s a C orp. 9/30/2009 QP S A OT C B B US D United S ta tes 2. 85 36. 3 0. 2 (9.8) NM - - 74
R eal V alue E s tates , Inc. 11/30/2009 R V LU OT C B B US D Is rael 1. 50 9.6 NM NM NM - - 3, 124
S ahara Media Holdings , Inc. 9/30/2009 S HHD OT C B B US D United S ta tes 0. 25 7.8 0. 0 (4.7) NM - - 514
S handa Interactive E nterta inment Ltd. 9/30/2009 S NDA Na s daqG S US D C hina 53. 00 3,564. 5 694.5 317.3 45. 7% - - 3, 124
S hutterfly, Inc. 9/30/2009 S FLY Na s daqG S US D United S ta tes 17. 70 454. 4 223.1 27. 0 12. 1% 1. 5x 12. 7x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 17,500 644. 9 202.4 13. 2 6.5% 3. 2x 49. 0x NA
S NAP Interactive, Inc. 9/30/2009 S TVI OT C B B US D United S ta tes 0. 30 3.3 3. 4 0.5 15. 6% 0. 5x 3. 2x 11
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0. 01 0.0 0. 1 (0.1) NM - - NA
S ocialwis e, Inc. 9/30/2009 S C LW OT C B B US D United S ta tes 0. 50 23. 8 NM (5.5) NM - - NA
S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 59. 21 2,277. 0 501.0 218.4 43. 6% 3. 5x 7. 9x 3, 197
S park Networks , Inc. 9/30/2009 L OV AME X US D United S ta tes 2. 78 57. 2 47. 5 10. 0 21. 0% 1. 1x 5. 3x 183
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D United S ta tes 0. 16 7.8 0. 1 (2.5) NM - - 7
T encent Holdings Ltd. 9/30/2009 700 S E HK HK D C hina 170 39, 917.6 1, 588. 8 811.5 51. 1% 27.7x - 6, 194
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 52 214. 0 250.6 85. 5 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 31 70. 7 67. 0 1.9 2.9% 0. 1x 3. 2x 310
T ree.C om, Inc. 9/30/2009 TR E E Na s daqG M US D United S ta tes 8. 99 98. 0 217.1 9.7 4.5% 0. 3x 7. 4x 700
Unilava C orpora tion 12/31/2008 UNLA OT C B B US D United S ta tes 0. 23 0.0 5. 3 (1.0) -18. 1% 0. 0x - 39
Unis erve C ommunica tions C orp. 8/31/2009 T S X V :US S T S XV C AD C anada 0. 08 1.9 5. 1 (0.9) -18. 1% 0. 4x 43. 2x NA
United O nline Inc. 9/30/2009 UNT D Na s daqG S US D United S ta tes 6. 83 577. 7 996.8 212.9 -42. 2% 3. 8x - NA
UOMO Media, Inc 10/31/2009 UO MO OT C B B US D C anada 0. 04 3.2 1. 0 (0.4) -42. 2% 3. 8x - NA
V alueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 10. 14 868. 7 545.7 130.8 24. 0% 1. 3x 5. 4x 1, 189
V elti P lc 6/30/2009 VEL AIM GBP United K ingdom 2. 49 149. 7 83. 8 17. 2 NM - - 2
V OIS , Inc. 9/30/2009 V O IS OT C B B US D United S ta tes 0. 01 10. 9 0. 0 (1.0) NM - - 2
W ebzen Inc. 9/30/2009 K O S E : A069080 K OS E KR W S outh K orea 12,300 128. 2 24. 2 2.7 11. 0% 2. 8x 25. 3x 328
W izzard S oftwa re C orporation 9/30/2009 W ZE AME X US D United S ta tes 0. 35 18. 7 5. 2 (3.9) -76. 4% 3. 9x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D United S ta tes 0. 09 4.8 0. 1 (0.6) NM - - 1
XING AG 9/30/2009 O 1B C XT R A E UR G ermany 30. 41 230. 8 61. 4 16. 6 27. 0% 2. 9x 10. 6x 266
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7,240 95. 6 60. 3 13. 0 21. 6% 1. 7x 7. 9x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 3,070 14. 4 12. 5 1.3 10. 5% 1. 1x 10. 2x NA
High 39, 917.6 10, 207.7 2, 398. 7 61. 7% 39.9x 49. 0x 6, 194
Low 0.0 0. 0 -51.7 -91. 9% 0. 0x 0. 3x 1
Average 903.2 445.7 106.3 9.5% 5.1x 11.8x 911
Median 64. 6 24.2 1. 1 15. 0% 2. 0x 9. 5x 266

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
Deal flow improves for January. Total transaction value in the W eb 2.0 universe for January-to-date is $118.4 million,
nearly double the total at the end of last week ($60.7 million). The number of financings stands at 13 (vs. 6 last week),
averaging $9.1 million each (compared with $10.1 million last week). In comparison, total capital raised in December was
$450.4 million, averaging $12.9 million over 35 deals. November was $204.4 million, averaging $10.8 million (19 deals);
and October was $176.1 million, averaging $5.9 million (30 deals).

Financing Activity Last Twelve Months

500.0 16.0

450.0 13.9
14.0
12.9
400.0

12.0

350.0 10.8

10.0
300.0 9.0 9.1
(US$m)

(US$m)
250.0 8.0
7.0 7.2
6.9
6.5
6.2
200.0 5.9
5.6 6.0

4.7
150.0

4.0

100.0

2.0
50.0

0.0 0.0
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10

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

Dec-09 includes $180m Zynga investment

Figure 2. Financings, Last Twelve Months

Source. Company reports
 Page 4

Deal round-up for Januar y: The large deal highlights for the month include:

• Mochi Media – US-based game designer – was acquired by China-based Shanda Games for $80 million.

• Quantcast – a web analytics service – raised $27.5 million in its third round of financing.

• Visible Technologies – online brand management solutions developer – raised $22 million in Series D financing.

• Guvera – Australian ad-based music distribution network – raised $20 million in its third round.

• Spiceworks – an ad-supported IT management software developer – raised $16 million in its third round of
financing.

All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23
and 24 (at end of note).

Financing & M/A Summary - Last Three Months

450.0

400.0

350.0

300.0

250.0
Jan-10
(US$m)

Dec-09
Nov-09
200.0

150.0

100.0

50.0

0.0
Phoenix New
Mochi Media

Millennial Media

LiveMocha
Movik Networks

Mixer Labs

PowerReviews
Motley Fool
PlayFish
Zynga

Guvera

MobGold
Evernote

Gowalla

SonicMule

wooga

Eventbrite
Bizo

Eyeka

Twilio

Playfire

GlobalMotion

SocialMedia
Nival Network

AppNexus
Friendster

Scoopler
SCVNGR
Living Social
Jajah

RockYou
Ku6
Youku
Groupon

Visible

Lala

Aggregate

CubeTree
kaChing

ChaCha
SeekingAlpha
Pageonce
Curse

JanRain
Article One

Blekko

HootSuite
Center'd
Sonico

Rekoo
Spiceworks

Flurry

Gizmoz

5 Minutes
StockTwits
Cloud Engines

Appolicious

OneForty

Blippy

Graphic.ly

PBworks
Playdom

SocialGO
Quantcast

Placecast
AlikeList

Tonchidot

Grapeshot

Echo Nest

Joost
ReachLocal
Shanghai

Sezmi

Gogii

Gaikai

Rocket Fuel

Jelli

Jinni
Smaato

Credit Karma
Whiskey Media

SimpleGeo
Zoosk

Altruik

Adfonic
Lithium

Qunar.com

Genius.com

Alice.com

Prosper.com
Reframe It

WePay

Imeem
gWallet

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports
 Page 5

A few sectors emerging as focus areas: Gaming, the sector that has taken a clear lead in terms of financing attention,
is now matched by Social Networks with 11 transactions each in the past quarter. Analytics is in second place with seven
financings, followed by Advertising at six financings (Figure 4). The $400 million acquisition of Playfish skews the Gaming
segment to the highest total financing figure.

Capital Market Activity by Sector - Last Three Months

900.0

800.0

700.0

600.0

500.0
(US$m)

400.0

300.0

200.0

100.0

820.5 210.7 124.3 112.0 108.5 74.7 54.0 51.2 45.9 41.3 33.1 31.7 16.8 16.0 15.0 13.4 12.7 12.5 12.5 10.0 10.0 8.0 8.0 6.0 5.3 5.3
0.0
Social Commerce
Gaming

Documents
Travel
Media

Mobile

Enterprise

Collaboration

Online Learning

Microblog
Music

Financial Services
Widget
SMS/Voice

Mobile Ad

Location-based

Infrastructure

Classified
Social Networks

Virtual Goods
Advertising

Video

Crowdsourced

Aggregation

Virtual World
Analytics

Content

SNS

# companies
11 2 6 4 11 7 2 3 4 5 4 4 4 1 1 3 4 1 4 1 3 1 1 1 2 1

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

Source. Company reports
 Page 6

C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) has positively
diverged from the broader tech market (represented by the Nasdaq Composite Index) since Q1/09 (Figure 5).

Web 2.0 Index Price Performance

300

250

200

150

100

50

0
1/19/2009

2/2/2009

2/16/2009

3/2/2009

3/16/2009

3/30/2009

4/13/2009

4/27/2009

5/11/2009

5/25/2009

6/8/2009

6/22/2009

7/6/2009

7/20/2009

8/3/2009

8/17/2009

8/31/2009

9/14/2009

9/28/2009

10/12/2009

10/26/2009

11/9/2009

11/23/2009

12/7/2009

12/21/2009

1/4/2010

1/18/2010
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Balanced week: Twenty-five companies in our universe had positive stock price performances (averaging 5.5%) over the
past week (for stocks with prices greater than $1) (Figure 6), while 28 companies showed negative 1-week returns
(averaging -3.8%).

1 Week P rice P erformance

V elti Plc 24.5%
Webz en Inc. 11.8%
A Q Interactive, Inc. 11.6%
S K Communica tions Co., Ltd. 11.1%
G amania Digital Entertainment Co., Ltd. 10.6%
Eolith Co. Ltd. 10.0%
Quepas a Corp. 7.5%
NetDragon WebS oft, Inc. 6.2%
G ree, Inc. 5.8%
HanbitS oft, Inc. 5.3%
Frogs ter Interactive Pictures A G 4.5%
K ings oft Co. Ltd. 4.4%
L ingo Media Corporation 4.3%
Ngi G roup Inc. 4.1%
Chines e G amer International 4.1%
The9 Limited 3.3%
Open Tex t Corp. 1.7%
IA C/InterA ctiveCorp. 1.5%
CDC Corp. 1.3%
G iant Interactive G roup, Inc. 0.9%
Mix i, Inc. 0.9%
G ameOn Co Ltd. 0.8%
PNI Digital Media Inc. 0.6%
OA O R B C Inf ormation S y s tems 0.2%
S ohu.com Inc. 0.0%
S hutterf ly , Inc. -0.4%
My riad G roup A G -0.4%
Tencent Holdings Ltd. -0.6%
Cy berplex Inc. -0.9%
NEOWIZ G ames Corporation -1.3%
Y nk K orea Inc. -1.8%
Northgate Technologies Limited -1.8%
Changy ou.com Limited -2.0%
V alueClick Inc. -2.3%
Tree.Com, Inc. -2.7%
Modern Times G roup Mtg A B -3.0%
Perf ect World Co., Ltd. -3.2%
DA DA S pA -3.3%
G ungHo Online Entertainment, Inc. -3.7%
TheS treet.c om, Inc. -3.7%
A s knet A G -3.9%
X ING A G -4.1%
S park Netw orks , Inc. -4.5%
Y D Online Corp. -5.1%
Fluid Mus ic Canada, Inc. -5.2%
Openw ave S y s tems Inc. -5.3%
G igaMedia Ltd. -5.4%
A ctoz S oft Co., Ltd. -5.5%
Neteas e.com Inc. -6.3%
G ravity Co., Ltd -6.7%
L ookS ma rt, Ltd. -7.0%
United Online Inc. -7.2%
S handa Interactive Entertainment Ltd. -10.0%
-0.15 -0.1 -0.05 0 0.05 0.1 0.15 0.2 0.25 0.3

Figure 6. 1-Week Price Performance

Source. Capital IQ
 Page 8

P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S )

K ey Developments
C ompany Headline Notes
Tree.C om, Inc . (Nas daqG M: TR E E ) T ree. C om, Inc. a nnounces a n E quity B uyback T he B oa rd of Directors of T ree. com, Inc. (Na s da q: T R E E ) a uthorized a s ha re repurcha s e progra m on J a nua ry 11, 2010.
in the a mount of $10 mm Under the progra m, T ree will repurchas e up to $10 million worth of its s ha res . T he progra m authorizes repurchas es of
common s hares in the open market or through priva tely-negotia ted tra ns a ctions . T ree expects to us e a va ilable ca s h to
finance thes e repurcha s es and will determine the timing a nd a mount of them ba s ed on its eva luation of ma rket conditions ,
applica ble S E C guidelines and regulations a nd other fa ctors . T he progra m ma y be s us pended or dis continued a t a ny time
at the dis cretion of the B oard. As of J anuary 11, 2010, T ree ha s approximately 10, 900, 000 common s ha res outs ta nding.

B right Things plc (AIM: B G T); G et On
W ith It L imited
B right T hings plc (AIM: B G T ) completed the
a cquis ition of G et O n W ith It Limited.
B right T hings plc (AIM: B G T ) s igned a n a greement to acquire G et O n W ith It L imited for £0. 43 million in s tock on December
24, 2009. Under the terms of agreement, B right T hings will is s ue a pproxima tely 35 million of its new ordina ry s ha res and
the gra nt of 41. 63 million warra nts to s ubs cribe for ordina ry s ha res , exercis able a t a price of £0. 0125 per s hare. O f the tota l
cons ideration, 11. 67 million s ha res will be is s ued to the on completion. T he bala nce 23. 33 million s hares will be allotted a nd
is s ued in four equa l tra nches on the firs t four a nnivers a ries of completion. Als o, 11. 67 million of the wa rrants will be granted
and ves t immedia tely upon completion a nd a re exercis a ble at a ny time during the 5-yea r period immedia tely following their
grant. T he balance wa rra nts , which a re otherwis e gra nted on the s a me terms a s the initia l wa rra nts , will not ves t or become
exercis a ble until the firs t annivers a ry of completion.

S tephen Ha rdma n a nd Alexander Ha llida y, Directors of G et O n W ith It, will join the B oa rd a s joint Ma na ging Directors of the
B right T hings . T he acquis ition is conditional on the pas s ing of the res olutions to be propos ed a t a general
meeting of the C ompa ny to be held on 11 J a nua ry 2010 a nd admis s ion of the initia l cons ideration s ha res to trading on
AIM, which is expected to occur on 12 J a nua ry 2010. W illiam V a ndyk of As taire S ecurities P lc a cted a s financial
advis or to B right T hings plc.

B right T hings plc (AIM: B G T ) completed the acquis ition of G et O n W ith It L imited on J a nua ry 12, 2010.

Dell Inc. (Nas daqG S : DE L L ); K ings oft Dell Inc. E nters into S trategic C oopera tion with Dell Inc. reached medium- a nd long-term s trategic coopera tion with K ings oft C o. Ltd. T he two pa rties to join hands on
C o. L td. (S E HK : 3888) K ings oft C o ma rket expa ns ion. Initially, they will tea m up to boos t product s a le and organize promotion a ctivities .
B right Things plc (AIM: B G T) B right T hings plc Announces C hange of B oa rd V ikra nt B ha rga va of V eddis V entures has joined the board of B right T hings plc a s a non-executive director. G O W IT
of Directors directors S tephen Ha rdma n a nd Alex Ha llida y will a ls o join the boa rd as joint mana ging directors .
Qunar.c om Information Tec hnology C o. S ohu. C om Inc. Announces P artners hip with S ohu. com Inc. ha s a nnounced a s tra tegic pa rtners hip with Q una r. com Information T echnology C o. Ltd. T he compa ny and
L td.; S ohu.c om Inc . (Nas daqG S : S OHU) Q una r. C om Informa tion T echnology C o. L td Qunar. com will s upply a new tra vel information s ite for a ra nge of contextua l advertis ing forma ts tha t will help advertis ers to
target cons umers better. T he coopera tion of S ohu's S ogou Ma p S ervice with Q una r. com is in line with full-fea ture, full-
s ervice s tra tegy. F rom this da y onwa rd, cons umers will be a ble to make a one-s top tra vel-rela ted s earch, expediting their
trip pla nning, fea ture eva lua tion and price compa ris ons .
S NM G lobal Holdings (OTC PK : S NMN); S NM G loba l Holdings a nnounced it will receive S NM G loba l Holdings (O T C P K : S NMN) a nnounced a n equity line of credit with new inves tor T a ngiers Inves tors , L . P . , a fund
Tangiers C apital, L L C $10 million of funding from T a ngiers C a pita l, ma naged by T angiers C apital, L LC for gros s proceeds of $10 million on J a nua ry 13, 2010. T he term of the credit line is over
L LC . a two yea r period.
Digital S olutions G roup plc; Openwave O penwa ve C olla bora tes with Digital S olutions Openwave S ys tems Inc. announced a joint colla bora tion with Digita l S olutions G roup plc. T he a greement is for DS G to
S ys tems Inc . (Nas daqG S : OPW V) G roup to P rovide C omplete Mobile Data dis tribute O penwa ve products while providing va lue-a dded profes s ional s ervices to operators in Africa a nd s ub-S aha ra n
S olutions to O pera tors in E merging Ma rkets ma rkets . T he s olutions will cons is t of O penwa ve's context-awa re mobile internet media tion a nd mobile a nalytics offerings ,
with a dva nced profes s ional s ervices from DS G . T he integra ted s olution is des igned to be a cos t- effective wa y for mobile
opera tors to monitor, mana ge a nd monetize the mobile internet in emerging a nd growth ma rkets . T he initial roll out of the
s oftwa re s olution will be powered by the Openwave(R ) Mobile Internet R ea dyS et - a low-cos t, prepa cka ged pla tform tha t
provides operators with a centra l point from which to offer new, revenue genera ting, mobile internet s ervices . T his roll out
will be a ccompanied by O penwave(R ) Mobile Ana lytics , a s olution tha t provides deep a na lytics a nd rich reporting for mobile
devices , as it is des igned to offer network opera tions ma na gers and ma rketing executives a clea r view a cros s all a s pects of
mobile data a ctivity. B oth s olutions a re s pecifica lly pa ckaged for s ma ller opera tors s eeking a fa s t return on inves tment. O penwa ve M
provides a complete mobile internet s olution cons is ting of content a da pta tion, accelera tion, ba ndwidth optimization,
and s ervice promotion and billing, in a s ingle pa ckage. W ith low-cos t ha rdwa re a nd s ta nda rd pre-configured
deployment options , R ea dyS et is ideal for s ma ller opera tors a nd newer markets which a re interes ted in a quick return
on inves tment for minima l ca pita l outlay. Additionally, R ea dyS et is s ca la ble a nd ca n expa nd to meet s ubs criber
growth and dema nds both in terms of increa s ed numbers and increa s ed us er expecta tion.

C L IC K E R Inc. (OTC B B : C L K Z) C LIC K E R Inc. a nnounced delayed 10-Q filing On 01/14/2010, C LIC K E R Inc. announced that they will be una ble to file their next 10-Q by the dea dline required by the
S E C.

Figure 7a. Key Developments

Source. Capital IQ
 Page 9

K ey Developments
C ompany Headline Notes
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. Announces R elea s e of O pen Open T ext C orp. announced the releas e of O pen T ext C a pture C enter vers ion 4. 0, fea turing next-genera tion document
T ext C apture C enter V ers ion 4. 0 cla s s ifica tion and da ta capture capa bilities a nd deeper integra tion with the O pen T ext E C M S uite, giving cus tomers the firs t
end-to-end, fully-integra ted s olution for a utoma ting bus ines s tra ns a ctions . Document clas s ifica tion, data ca pture and data
recognition technologies a re us ed anywhere documents - including purcha s e orders , ins urance cla ims a nd vendor invoices ,
among many others - need to be routed a nd informa tion from pa per documents extra cted. W ith C a pture C enter 4,
automa tion s tarts at the point of entry for incoming documents : in the mailroom. T his mea ns informa tion in documents gets
to intended des tina tions a lmos t immediately, compa red to s low s orting a nd delivery of documents followed by error-prone
ma nua l keying of informa tion into s ys tems . C ompetitive offerings often rely on multiple vendors for a complete s olution,
lea ving it up to cus tomers or expens ive s ys tem integra tors to get everything working. In contra s t, O pen T ext delivers fully
integra ted trans a ctiona l content ma na gement functionality, s tarting from initial document ca pture through to robus t bus ines s proces s
automa tion a nd retention functions , a ll pa rt of the O pen T ext E C M S uite. W ha t's more, O pen T ext ha s clos e
pa rtners hips a nd deep integra tions with leading enterpris e s oftwa re vendors s uch a s S AP , O ra cle a nd Micros oft,
ens uring tha t a bus ines s proces s ca n s pa n a ll applications neces s a ry to complete tra ns a ctions . C a pture C enter 4
(formerly C a ptaris DO K uS tar C a pture S uite) includes numerous recognition modules a cces s ible through a n ea s y-to-
us e client. It provides cla s s ifica tion technology that complements the text-ba s ed cla s s ifica tion approa ch us ed by
E nterpris e L ibra ry S ervices in the O pen T ext E C M S uite. T he O pen T ext E C M S uite brings together the broa d ra nge
of content ma na gement ca pabilities orga nizations need to s ecurely a nd s a fely ma nage a ll types of enterpris e
informa tion documents , vita l records , W eb content, video, ima ges , email, forms a nd reports a cros s ma ny different
enterpris e s ys tems and a pplica tions . Indus try-leading ca pture ca pabilities provided by C a pture C enter include
ma chine and hand print recognition with voting cha ra cter recognition engines , optical cha ra cter recognition (O C R ),
intelligent character recognition (IC R ), intelligent document recognition (IDR ), ma gnetic ink cha ra cter recognition
(MIC R ) a nd other s pecial font recognition, rule bas ed a nd learning document clas s ifica tion, a daptive recognition,
free form data extraction a s well as others . G uided ma nua l da ta entry is s upported by patented S ingle C lick E ntry
technology. B y providing a complete technology pa cka ge with its own components , O pen T ext is a ble to fine tune
the recognition proces s yielding very high recognition precis ion.

TheS treet.c om, Inc . (Nas daqG M: TS C M) T heS treet. com, Inc. Appoints Da niel F la x a s
C hief Information O fficer
IAS E nergy, Inc . (OTC P K : IAS C .A) Ia s E nergy, Inc. Announces Una udited
C ons olida ted E arnings R es ults for the S econd
Q ua rter a nd S ix Months E nded O ctober 31,
2009
T heS treet. com, Inc. announced that Daniel F la x has been a ppointed C hief Informa tion O fficer, effective immedia tely. In this
newly created pos ition, Mr. F la x will report directly to C hief E xecutive O fficer Da ryl Otte. Mr. F la x brings nearly two deca des
of experience to the compa ny. Mos t recently, Mr. F la x wa s the C hief Informa tion O fficer for C owen G roup, Inc. where he
was res pons ible for the delivery of technology s ervices to a ll areas of the compa ny, including res earch, inves tment ba nking,
and tra ding technology.
IAS E nergy, Inc. a nnounced una udited cons olida ted ea rnings res ults for the s econd qua rter and s ix months ended O ctober
31, 2009. F or the quarter, the compa ny reported tota l revenue of $6, 449 compa red to $2, 907 for the s ame period a yea r
ago. L os s from opera tions wa s $110, 580 compa red to $272, 875 for the s a me period a yea r ago. Net los s wa s $108, 925
compa red to $273, 422 for the s ame period a yea r a go. C omprehens ive los s wa s $101, 649 compa red to $294, 729 for the
s a me period a yea r a go. L os s per s hare was $0. 002 compa red to $0. 004 for the s a me period a yea r a go.

Figure 7b. Key Developments

Source. Capital IQ
 Page 10

VALUATION
Gaming companies lead market-cap charts: Fourteen companies in our W eb 2.0 universe top US$1 billion in market
capitalization (Figure 8). Fifty-two of the 87 companies have market caps under US$100 million, with 32 under US$25
million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market cap of
approximately US$39.9 billion.

Market C ap ($US mm)

Tencent Holdings Ltd. 39917. 6
Neteas e.com Inc. 4828. 9
S handa Interactive Entertainment Ltd. 3564. 5
Modern Times G roup Mtg A B 3294. 2
IA C/InterA ctiveCorp. 2814. 9
G ree, Inc. 2763. 2
Open Tex t Corp. 2343. 8
S ohu.com Inc. 2277. 0
Perf ect World Co., Ltd. 2089. 3
Changy ou.com Limited 1898. 6
G iant Interactive G roup, Inc. 1691. 7
Chines e G amer International 1133. 4
Mix i, Inc. 1109. 3
K ings of t Co. Ltd. 1004. 0
V alueClick Inc. 868. 7
NEOWIZ G ames Corporation 722. 6
S K Communications Co., Ltd. 644. 9
United Online Inc. 577. 7
S hutterf ly , Inc. 454. 4
NetDragon WebS of t, Inc. 329. 1
G amania Digital Entertainment Co., Ltd. 292. 6
CDC Corp. 286. 8
G ungHo Online Entertainment, Inc. 272. 4
XING A G 230. 8
The9 Limited 214. 0
My riad G roup A G 213. 3
Openw ave S y s tems Inc. 194. 6
OA O R B C Inf ormation S y s tems 194. 2
G igaMedia Ltd. 170. 6
V elti Plc 149. 7
A ctoz S of t Co., Ltd. 133. 6
DA DA S pA 131. 4
Webz en Inc. 128. 2
Fluid Mus ic Canada, Inc. 100. 3
Tree.Com, Inc. 98. 0
Eolith Co. Ltd. 95. 8
Y D Online Corp. 95. 6
G ameOn Co Ltd. 80. 3
NeuLion Incorporated 78. 7
HanbitS of t, Inc. 77. 1
Cy berplex Inc. 75. 8
Frogs ter Interactive Pictures A G 72. 1
TheS treet. com, Inc. 70. 7
G eoS entric Oy j 64. 6
S park Netw orks , Inc. 57. 2
PNI Digital Media Inc. 52. 9
G ravity Co. , Ltd 46. 7
DXN Holdings B hd 46. 6
A Q Interactive, Inc. 43. 4
DigitalTow n, Inc. 38. 3
Quepas a Corp. 36. 3
Ngi G roup Inc. 32. 7
NeXplore Corporation 30. 7
Multiplied Media Corporation 27. 9
S ocialw is e, Inc. 23. 8
A s knet A G 22. 9
Northgate Technologies Limited 22. 7
En2G o International, Inc. 21. 4
Wiz z ard S of tw are Corporation 18. 7
A cceleriz e New Media, Inc. 18. 7
LookS mart, Ltd. 18. 3
Lingo Media Corporation 17. 4
Dolphin Digital Media, Inc. 15. 4
Y nk K orea Inc. 14. 4
J umbuck Entertainment Limited 13. 6
MOK O.mobi Limited 13. 5
V OIS , Inc. 10. 9
B right Things plc 10. 6
is eemedia Inc. 9. 6
R eal V alue Es tates , Inc. 9. 6
Magnitude Inf ormation S y s tems Inc. 8. 4
S pectrumDNA , Inc. 7. 8
S ahara Media Holdings , Inc. 7. 8
B roadWebA s ia Inc. 5. 1
Worlds .com Inc. 4. 8
B etaw ave Corporation 4. 7
S NA P Interactive, Inc. 3. 3
UOMO Media, Inc 3. 2
DigitalPos t Interactive, Inc. 3. 1
CornerWorld Corporation 2. 9
A s s ociated Media Holdings Inc. 2. 1
Unis erve Communications Corp. 1. 9
B igs tring Corp. 1. 5
B ey ond Commerce, Inc. 1. 3
Unilava Corporation 0. 0
S ocial Media V entures Inc. 0. 0
InternetA rray , Inc. 0. 0
0 1, 000 2, 000 3,000 4, 000 5, 000 6,000

Figure 8. Market Cap Ranking

Source. Capital IQ
 Page 11

TEV/Revenue (LTM) averages 4.9x: The overall average TEV/Revenue (LTM) multiple for our group is 4.9 (vs. 5.2x last
week) (Figure 9). Three companies trade above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 39.9x, Associated Media
Holdings Inc. (OTCPK:ASMH) at 36.0x, and Tencent Holdings Ltd. (SEHK:700) at 27.7x. The median is 1.7x. Note that we
exclude multiples greater than 50x. Twenty-three companies have multiples under 1.5x.

T E V/L T M R evenue (x)

45. 0
39.9
40. 0
36.0
35. 0

30. 0 27.7

25. 0

20. 0 17.3
15.916.5
14.8 15.1
15. 0 12.413.0

10. 0
6.2 6.8 7.2 7.5
5.3 5.7
4.4 4.6
5. 0 3.5 3.8 3.9
2.5 2.8 2.9 3.0 3.2 3.3 3.3
1.7 1.9 2.0 2.0 2.1
0.8 0.9 1.0 1.1 1.1 1.1 1.1 1.3 1.3 1.5 1.7 1.7
0.0 0.0 0.1 0.1 0.1 0.3 0.3 0.3 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.6 0.7 0.8 0.8 0.8
0. 0

N E O WIZ G ames C orporation

J umbuc k E nterta inment L imited

MO K O .mobi L imited
UO MO Media, Inc
G a mania Digital E ntertainment C o., Ltd.

G ungHo O nline E ntertainment, Inc.

P N I Digital Media Inc.

C hines e G amer Interna tional

U nis erve C ommunications C orp.
O AO R B C Information S y s tems

N orthgate T echnologies L imited

DXN Holdings B hd

C hangy ou.com L imited

G a meO n C o Ltd.

T ree.C om, Inc.

C DC C orp.

B ey ond C ommerc e, Inc.

S K C ommunica tions C o., Ltd.

DigitalP os t Intera ctive, Inc.

F luid Mus ic C a nada , Inc.

Modern T imes G roup Mtg AB

G eoS entric O y j
NeuLion Inc orporated
U nilav a C orporation

C ornerWorld C orporation

Lingo Media C orporation

T heS treet.com, Inc .

S NAP Intera ctive, Inc.

United O nline Inc .

O pen T ex t C orp.
AQ Intera ctive, Inc .

C y berplex Inc .

G igaMedia Ltd.

IAC /InterAc tiveC orp.

S pa rk N etwork s , Inc .

V alueC lic k Inc .

Y D O nline C orp.

NetDra gon WebS oft, Inc .

S ohu.com Inc .

is eemedia Inc .

Mix i, Inc .
F rogs ter Intera ctiv e P ictures AG

G ree, Inc .

E olith C o. Ltd.

T encent Holdings Ltd.

As s ociated Media Holdings Inc .
XIN G AG
P erfect World C o., Ltd.
O penwave S y s tems Inc .

H anbitS oft, Inc .

Y nk K orea Inc .

InternetArray , Inc .

Webz en Inc .

S ocial Media V entures Inc .

B igs tring C orp.

My riad G roup AG
S hutterfly , Inc .

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.

B eta wav e C orporation

V elti P lc
DADA S pA
Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

As k net AG

Figure 9. TEV/Revenue Ranking

Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: W e 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 5.4x. On a geographic basis, the United States has the most
companies (34), trading at an average of 5.8x revenue (Figure 11). Nine of the companies are Canadian (average 3.7x
revenue).

Average TEV/LTM Revenue - By Country

Average TEV/LTM Revenue - By Exchange 16.0 14.8
25.0
21.4 14.0
20.0 12.0
14.8 10.0
15.0 12.2 8.8
(x)

8.0 7.8
(x)

10.0 8.8 6.2 5.8

8.4 6.5 6.0 5.8
4.5 3.7
5.4 5.1 5.0 3.7 4.0 3.7
5.0 3.5 3.3 2.5 3.5 3.3
2.5 2.0 1.9 0.8 0.7 1.9
0.5 0.2 2.0 0.8
0.7 0.5
0.0 0.0 0.0 0.0
OTCPK

OTCBB
GTSM

NasdaqGM
HLSE
SEHK

TSE

KOSE

NasdaqGS
OSE

CM

RTS
OM
TSX

XTRA

AMEX

KLSE
BSE
SWX
TSXV
ASX

Germany
Finland

China

Hong Kong

United

Japan

Canada

Malaysia

India

Russia
Italy
South
Korea
States
Australia

Taiwan

Switzerland

Sweden

# Companies 5 1 3 2 2 3 20 5 5 8 3 1 2 14 1 1 1 1 1 4 1
# Companies 1 2 10 1 3 34 6 9 9 3 1 1 1 1 1 1

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

Source. Capital IQ
 Page 12

TEV/EBITDA (LTM) averages 11.9x: The average multiple for the 40 companies with positive EBITDA (and multiples
under 100x) is 11.9x LTM EBITDA (vs. 11.8x last week), led by SK Communications Co. Ltd. (KOSE:A066270) at 49.0x
(Figure 12). Fifteen companies have EBITDA multiples under 7x. The median multiple is 9.5x.

T E V/LT M E B IT DA (x)

60. 0

49. 0
50. 0
43.2

40. 0
33. 4

30. 0
25. 3 26. 0
21. 7 22. 3
20. 0 16. 9
12. 8 13. 8 14. 2 14. 4
11. 4 11. 9 12. 2 12.7
10.1 10. 2 10. 6 10. 6
8. 3 8. 9
10. 0
5. 4 5.8 5. 8 6. 6 7. 4 7.9 7. 9
5. 1 5. 3
3. 2 3. 2 3. 4 3. 9 4. 5
0. 3 0.3 0. 8 0. 9
0. 0

NE O WIZ G ames C orporation

J umbuc k E ntertainment L imited

G ungH o O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

P NI Digital Media Inc .

C hines e G amer International

U nis erve C ommunic ations C orp.

O AO R B C Information S y s tems

DXN H oldings B hd

C hangy ou. c om L imited

G ameO n C o L td.

T ree. C om, Inc .

C DC C orp.

S K C ommunic ations C o. , L td.

Modern T imes G roup Mtg AB
T heS treet. c om, Inc.

S NAP Interac tive, Inc.

U nited O nline Inc.

O pen T ex t C orp.
C y berplex Inc.

S park Network s , Inc.

V alueC lic k Inc.

AQ Interac tive, Inc.

NetDragon WebS oft, Inc.

Y D O nline C orp.

S ohu. com Inc.

IAC /InterAc tiveC orp.

Mix i, Inc.

G ree, Inc.

E olith C o. L td.
XING AG
P erfec t World C o. , L td.

Y nk K orea Inc.

O penwave S y s tems Inc.

Webz en Inc.
V elti P lc

S hutterfly , Inc.

K ings oft C o. L td.

DADA S pA
Ac toz S oft C o. , L td.

Figure 12. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (20), trading at an average multiple of 7.0x. On a geographic basis, the
United States has the most companies (34), trading at an average of 7.9x EBITDA (Figure 14). Nine of the companies are
Canadian (average 17.8x EBITDA).

Average TEV/LTM EBITDA - By Country

Average TEV/LTM EBITDA - By Exchange
25.0
30.0 27.6
20.2
25.0 20.0
20.0 18.3
20.2 15.0 17.8
18.3
(x)

15.0 16.9 13.8

(x)

13.812.5 11.8 10.6

11.7 10.6 10.1
10.0 8.9 8.2 10.0 8.5
7.0 7.9
5.0 5.8 5.3 5.3 5.1 4.5
0.9 5.8 5.1
5.0
0.0 0.3
0.3
OTCPK

OTCBB
GTSM

NasdaqGM
KOSE

TSE

SEHK

OSE

NasdaqGS

RTS
OM

CM
XTRA

AMEX

KLSE

TSX
TSXV

ASX

0.0 0.9
Germany
Canada

Japan

Hong

China

United

Malaysia

Russia
Italy
South
Korea

Kong

States
Taiwan

Australia
Sweden

# Companies 5 8 2 5 1 5 3 3 1 14 20 1 2 4 1 3 2 1
# Companies 9 3 9 1 6 3 1 10 34 1 1 2 1

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

Source. Capital IQ
 Page 13

P/E (LTM) averages 23.2x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 23.2x LTM EPS (vs. 22.9x last week), led by HanbiSoft Inc. (KOSE:A047080) with a 73.1x multiple (Figure 15). Twelve
companies have P/E multiples under 10x. The median is 16.7x.

P /E L T M (x)

80.0
73.1

70.0 67.4 69.1

60.0 56.8
51.1 52.4
47.9
50.0

40.0 35.8
34.1
30.3 31.0
30.0
22.0
17.9 18.0 18.1 19.0
20.0 16.0 16.7
13.9
12.0 12.8
9.7
10.0 6.5 6.6 6.7 8.2
1.8 2.3 2.4 2.6 2.6 3.7
0.0
0.0

NE O W IZ G ames C orporation
J umbuck E ntertainment Limited

G amania Digital E ntertainment C o., Ltd.

G ungH o O nline E ntertainment, Inc.

C hines e G amer International
DXN H oldings B hd

C hangy ou.com Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.

Modern T imes G roup Mtg AB

G ravity C o., Ltd

T he9 Limited
S handa Interactive E ntertainment Ltd.

Neteas e.com Inc.

S NAP Interactive, Inc.

O pen T ex t C orp.
C y berplex Inc.

G igaMedia Ltd.

Y D O nline C orp.

IAC /InterActiveC orp.

S ohu.com Inc.

NetDragon W ebS oft, Inc.

S park Network s , Inc.

G ree, Inc.

Mix i, Inc.

T encent H oldings Ltd.

XING AG
P erfect World C o., Ltd.

W ebz en Inc.

H anbitS oft, Inc.

V elti P lc

K ings oft C o. Ltd.

Actoz S oft C o., Ltd.

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 9.0x. On a geographic basis, the United States has
the most companies (34), trading at an average of 13.9x earnings (Figure 17). Nine of the companies are Canadian
(average 28.8x EPS).

Average P/E - By Exchange Average P/E - By Country

45.0
60.0 41.3
52.4 40.0
50.0 35.0
40.0 40.8 30.0 34.0
37.6 35.7 31.0 28.8
32.2 31.0 25.0
(x)

30.0 23.7
(x)

22.0 20.0 17.9

20.0 19.0 17.9
11.1 9.0 15.0 14.6 13.9
6.6 6.5 12.8
10.0 10.0
3.7 6.6
0.0 1.8 0.0 5.0 3.7
OTCPK

OTCBB
GTSM

NasdaqGM
OSE

KOSE

TSE

SEHK

NasdaqGS
OM
XTRA

AMEX

KLSE

TSX

NYSE
ASX

0.0 2.3
Germany

Israel
Japan

Canada

China

United

Hong

Malaysia
South
Korea

Kong
States
Taiwan

Australia
Sweden

# Companies 1 8 5 3 2 3 5 2 1 14 20 1 3 2 1 4
# Companies 6 9 3 9 3 1 10 34 1 1 2 1

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

Source. Capital IQ
 Page 14

UPCOMING EVENTS

E arnings C alendar
C ompany Date Time Quarter C onf C all Details
Open Text Corp. (NasdaqGS:OTEX) 3-Feb-10 5:00 p.m. EDT Q2/10 800-814-4859
Shutterfly, Inc. (NasdaqGS:SFLY) 4-Feb-10 5:00 p.m. EDT Q4/09 816-581-1703
Tree.Com, Inc. (NasdaqGM:TREE) 5-Feb-10 11:00 a.m. EDT Q4/09 800-967-7184
IAC/InterActiveCorp. (NasdaqGS:IACI) 9-Feb-10 11:00 a.m. EDT Q4/09 http://www.iac.com/Investors

Figure 18. Earnings Calendar

Source. Capital IQ
 Page 15

C omparable C ompany Analys is > Web 2.0

Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

A ccelerize New Media, Inc. US D AC L Z OT C B B 18.7 0.65 0. 0% 0.0% 8.3% 18.2% 85.7% -18.8%
A ctoz S oft C o. , L td. KR W A052790 K OS E 133.6 17, 250 -5.5% -15.0% 10.2% -35.5% 62.7% -52.1%
A Q Interactive, Inc. JPY 3838 TS E 43.4 73,000.00 11.6% 63.7% 49.0% 18.5% 153. 5% -12.0%
A s knet AG E UR XT R A :A5A XT R A 22.9 3.15 -3.9% -1.5% -19.2% 3. 7% -19. 2% -23.5%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 2.1 0.05 -2.0% 433.3% 242.9% 140.0% 860. 0% -93.7%
B eta wave C orpora tion US D B W AV OT C B B 4.7 0.16 6. 7% 60.0% 213.7% 39.1% -27. 3% -30.4%
B eyond C ommerce, Inc. US D B Y OC OT C B B 1.3 0.02 0. 0% -26.7% -81.8% -93.4% -97. 7% -98.8%
B igs tring C orp. US D BSGC OT C B B 1.5 0.02 0. 0% -2.1% -39.7% -45.3% 34.3% -58.8%
B right T hings plc GB P AIM:B G T A IM 10.6 0.02 64.0% 78.3% 49.1% 48.6% 36.7% -18.0%
B roadW ebA s ia Inc. US D BWBA OT C P K 5.1 0.06 -14.3% 20.0% 100.0% -73.9% -94. 1% -96.0%
C DC C orp. US D C H IN.A Nas da qG S 286.8 2.71 1. 3% 14.6% 10.0% 25.2% 197. 3% -31.0%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 898.6 34.52 -2.0% 2.7% 15.8% -16.5% NM -28.6%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 133.4 429.00 4. 1% 3.6% -8.7% -11.6% 375. 1% -17.3%
C ornerW orld C orpora tion US D CW R L OT C B B 2.9 0.03 0. 0% 0.0% -50.0% -50.0% -88. 0% -92.7%
C yberplex Inc. C AD T S X: C X TS X 75.8 1.14 -0.9% -5.8% -13.6% -26.0% 196. 1% -42.7%
DADA S pA E UR C M:DA CM 131.4 5.63 -3.3% -4.9% -26.5% -5.9% -9.8% -31.3%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 3.1 0.04 -20.5% -14.6% -41.7% 16.7% 59.1% -64.6%
DigitalT own, Inc. US D DG T W OT C B B 38.3 1.40 16.7% 0.0% -44.0% -30.0% -53. 3% -60.0%
Dolphin Digital Media, Inc. US D DP DM OT C B B 15.4 0.27 17.4% 8.0% -25.0% -25.0% -61. 4% -64.5%
DXN Holdings B hd MY R DXN K LS E 46.6 0.70 15.8% 21.9% 5.3% 87.8% 95.8% -7.3%
E n2G o International, Inc. US D E TGI OT C B B 21.4 0.90 76.5% 38.5% 50.0% -40.0% -47. 1% -82.0%
E olith C o. L td. KR W A041060 K OS E 95.8 715.00 10.0% 25.4% 25.4% -11.7% 38.8% -38.4%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 100.3 1.65 -5.2% -5.7% 3.8% 96.4% 432. 3% -23.3%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 72.1 19.55 4. 5% 9.8% -5.0% 53.9% 291. 0% -9.0%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 292.6 61 10.6% 25.7% 22.5% -3.7% 181. 7% -11.8%
G ameO n C o L td. JPY 3812 TS E 80.3 76000.00 0. 8% 16.0% -16.1% -28.3% -37. 8% -42.8%
G eoS entric Oyj E UR G E O1V H LS E 64.6 0.05 0. 0% 25.0% 0.0% 25.0% 25.0% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 691.7 7.47 0. 9% 1.5% 5.2% 2. 5% 33.4% -21.9%
G igaMedia L td. US D G IG M Nas da qG S 170.6 3.13 -5.4% -21.9% -35.7% -39.0% -47. 7% -59.5%
G ra vity C o., Ltd US D GR VY Nas da qG M 46.7 2 -6.7% 15.9% -1.2% 3. 4% 184. 7% -36.1%
G ree, Inc. JPY T S E :3632 TS E 2, 763.2 5, 650 5. 8% 4.2% 17.7% 56.3% 96.5% -6.5%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 272.4 217, 700 -3.7% 39.4% 3.1% 1. 2% 121. 0% -22.2%
H anbitS oft, Inc. KR W A047080 K OS E 77.1 4000.00 5. 3% 3.4% 0.6% -13.5% 30.1% -39.8%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 814.9 21.33 1. 5% 10.9% 12.1% 26.8% 44.4% -4.3%
InternetArray, Inc. US D INAR OT C P K 0.0 0.00 0. 0% 0.0% -82.1% -50.0% -99. 8% -99.9%
is eemedia Inc. C AD IE E T S XV 9.6 0.19 -5.0% 5.6% 35.7% 123.5% 111. 1% -29.6%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 13.6 0.31 0. 0% -4.7% -16.4% -19.7% -36. 5% -39.0%
K ings oft C o. L td. HK D 3888 S E HK 1, 004.0 7.10 4. 4% 27.9% -10.9% 4. 6% 166. 9% -25.0%
L ingo Media C orpora tion C AD T S XV :LM T S XV 17.4 1.45 4. 3% 61.1% 54.3% 61.1% 48.0% -8.2%
L ookS mart, L td. US D LO OK Nas da qG M 18.3 1.07 -7.0% 4.9% -14.4% -2.7% -17. 7% -31.4%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 8.4 0.02 -9.5% -1.0% 58.3% 111.1% -36. 7% -51.3%
Mixi, Inc. JPY 2121 TS E 1, 109.3 659, 000 0. 9% -14.0% -1.5% -7.2% 28.7% -23.8%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 294.2 355 -3.0% 8.5% 9.4% 37.9% 165. 9% -4.0%
MO K O .mobi L imited AU D MK B AS X 13.5 0.13 -19.4% -28.6% 58.2% 92.3% 150. 0% -37.5%
Multiplied Media C orpora tion C AD T S XV :MMC T S XV 27.9 0.22 -8.3% 25.7% 10.0% 158.8% 300. 0% -17.0%
Myriad G roup AG C HF MY R N S WX 213.3 4.98 -0.4% 4.0% 11.9% 16.6% -16. 9% -19.5%
NE O W IZ G ames C orporation KR W A095660 K OS E 722.6 38, 950 -1.3% -7.9% 3.9% 26.5% 238. 7% -13.3%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 329.1 4.83 6. 2% 20.8% -8.5% -21.2% 82.3% -32.4%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 828.9 37.31 -6.3% -0.9% -3.0% -4.7% 116. 0% -23.1%
NeuLion Incorpora ted C AD T S X: NL N TS X 78.7 0.70 0. 0% 0.0% -12.5% -21.3% 133. 3% -46.2%
NeXplore C orpora tion US D NXP C OT C P K 30.7 0.55 -12.7% -12.7% -8.3% 22.2% -45. 0% -45.0%
Ngi G roup Inc. JPY 2497 TS E 32.7 24, 190 4. 1% -2.5% -14.1% -28.0% -50. 2% -53.9%
Northgate T echnologies Limited INR 590057 BSE 22.7 30.10 -1.8% 3.4% -20.3% -16.0% -29. 2% -49.7%
O AO R B C Information S ys tems US D R BCI R TS 194.2 1.40 0. 2% -12.5% -6.7% 86.7% 246. 9% -17.6%
O pen T ext C orp. US D OT E X Nas da qG S 2, 343.8 41.57 1. 7% 9.6% 3.3% 12.5% 39.9% -2.4%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 194.6 2.33 -5.3% 5.0% -9.3% -21.0% 301. 7% -25.6%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 089.3 41.99 -3.2% 0.5% -0.5% 32.3% 188. 8% -16.8%
P NI Digital Media Inc. C AD T S XV :P N T S XV 52.9 1.63 0. 6% -5.8% -4.1% 13.2% 3.2% -23.5%
Q uepa s a C orp. US D QP S A OT C B B 36.3 2.85 7. 5% 26.7% 106.5% 216.7% 49.2% -5.0%
R ea l V alue E s tates , Inc. US D R V LU OT C B B 9.6 1.50 20.0% 36.4% NM NM NM 0.0%
S ahara Media H oldings , Inc. US D S HH D OT C B B 7.8 0.25 -47.9% -55.4% -72.2% -91.7% -91. 7% -92.3%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 564.5 53.00 -10.0% 1.4% 11.3% -5.3% 90.4% -18.5%
S hutterfly, Inc. US D S F LY Nas da qG S 454.4 17.70 -0.4% -1.1% 10.6% 28.4% 156. 5% -6.0%
S K C ommunications C o. , L td. KR W A066270 K OS E 644.9 17, 500 11.1% 55.6% 115.8% 76.8% 148. 2% -4.9%
S NA P Intera ctive, Inc. US D S TVI OT C B B 3.3 0.30 -33.3% 50.0% -14.3% -33.3% -70. 6% -71.4%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 11.1% 0.0% -88.1% -98.4% -99. 5% -99.7%
S ocialwis e, Inc. US D S CLW OT C B B 23.8 0.50 2. 0% 0.0% -18.0% -37.5% -39. 8% -51.0%
S ohu.com Inc. US D S O HU Nas da qG S 2, 277.0 59.21 0. 0% 6.6% -8.5% -4.5% 53.6% -18.1%
S pa rk Networks , Inc. US D LO V A ME X 57.2 2.78 -4.5% 0.7% 13.0% 13.5% 11.6% -17.5%
S pectrumDNA, Inc. US D S P XA OT C B B 7.8 0.16 -13.5% 14.3% 14.3% 6. 7% -15. 8% -64.4%
T encent H oldings Ltd. HK D 700 S E HK 39,917. 6 170 -0.6% 11.4% 18.5% 69.9% 283. 5% -3.9%
T he9 L imited US D NC T Y Nas da qG S 214.0 8.52 3. 3% 22.1% 7.4% 0. 8% -39. 7% -48.8%
T heS treet.com, Inc. US D TS CM Nas da qG M 70.7 2.31 -3.7% 5.0% -22.7% 19.1% -20. 1% -26.9%
T ree.C om, Inc. US D TR E E Nas da qG M 98.0 8.99 -2.7% 2.7% 16.3% -7.8% 124. 8% -31.2%
U nilava C orporation US D UNLA OT C B B 0.0 0.23 -28.1% 21.1% NM NM NM -58.2%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.9 0.08 -11.1% 60.0% 60.0% -20.0% 0.0% -20.0%
U nited O nline Inc. US D UNT D Nas da qG S 577.7 6.83 -7.2% -6.2% -22.7% -15.0% 16.2% -27.8%
U OMO Media, Inc US D UO MO OT C B B 3.2 0.04 -26.0% -14.0% -67.8% -64.8% -47. 1% -96.5%
V alueC lick Inc. US D V CLK Nas da qG S 868.7 10.14 -2.3% 7.5% -24.9% -10.1% 80.4% -27.3%
V elti P lc GB P VEL A IM 149.7 2.49 24.5% 24.5% 29.8% 46.5% 107. 5% -2.1%
V OIS , Inc. US D V O IS OT C B B 10.9 0.01 32.5% 10.0% 120.0% 57.1% 175. 0% -52.2%
W ebzen Inc. KR W K O S E : A069080 K OS E 128.2 12, 300 11.8% -1.6% 11.3% -17.2% 66.7% -40.6%
W izzard S oftwa re C orporation US D W ZE A ME X 18.7 0.35 -7.9% -14.6% -20.5% -28.6% -51. 4% -56.8%
W orlds .com Inc. US D W DDD OT C B B 4.8 0.09 0. 0% -5.3% -10.0% -40.0% -40. 0% -59.1%
XING A G E UR O1B C XT R A 230.8 30.41 -4.1% -1.6% -17.8% 4. 8% 6.3% -19.9%
Y D Online C orp. KR W A052770 K OS E 95.6 7, 240 -5.1% 6.3% -8.6% -12.5% 2.1% -41.6%
Y nk K orea Inc. KR W A023770 K OS E 14.4 3, 070 -1.8% -11.4% -30.1% -46.1% -22. 3% -64.7%
H igh 76.5% 433.3% 242.9% 216.7% 860. 0% 0.0%
L ow -47.9% -55.4% -88.1% -98.4% -99. 8% -99.9%
Average 903.2 0.4% 13.3% 6.8% 8.6% 69.9% -37.0%
Media n 0. 0% 3.6% -0.5% -2.7% 37.8% -30.4%

Figure 19. Price Performance

Source. Capital IQ
 Page 16

C omparable C ompany Analys is > Web 2.0

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 18.7 5.7x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 133.6 0.8x - 3. 4x - 18.1x - 1.9x
AQ Intera ctive, Inc. G aming J apan TS E 3838 43.4 0.3x - 5. 8x - - - 0.7x
As knet A G G aming G erma ny XT R A XT R A :A5A 22.9 0.1x - - - - - -
As s ocia ted Media Holdings Inc. G aming U nited S ta tes OTCP K AS MH 2.1 36.0x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 4.7 0.3x - - - - - 3.2x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 1.3 1.0x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.5 39.9x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 10.6 - - - - - - 12.5x
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 5.1 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 286.8 0.8x 0.8x 12.8x 6.2x - 36.1x 12.2x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,898.6 6.2x 5.2x 10.1x 8.0x 12.8x 11.3x 9.9x
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,133.4 15.1x - 26.0x - 34.1x - 16.3x
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 2.9 1.3x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 75.8 0.5x 0.4x 4. 5x 3.6x 6.5x 6.8x 2.6x
DA DA S pA S ocial Networking Italy CM C M:DA 131.4 0.8x - 5. 8x - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 3.1 4.4x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 38.3 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 15.4 - - - - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 46.6 0.7x - 5. 1x - 6.6x - 0.9x
E n2G o International, Inc. S ocial Networking U nited S ta tes OTCB B E TGI 21.4 - - - - - - -
E olith C o. L td. G aming S outh K orea K OS E A041060 95.8 15.9x - 33.4x - - - 1.1x
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 100.3 16.5x 16.4x - - - - 7.1x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 72.1 7.5x - - - - - 9.0x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 292.6 1.7x - 10.6x - 30.3x - 3.6x
G ameO n C o Ltd. G aming J apan TS E 3812 80.3 0.1x - 0. 3x - 8.2x - 1.0x
G eoS entric Oyj Mobile F inland H LS E G E O1V 64.6 14.8x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,691.7 - - - - 1.8x 15.5x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 170.6 0.6x 1.1x - 22.5x 6.7x - 1.5x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 46.7 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,763.2 13.0x - 22.3x - 47.9x - 22.7x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 272.4 2.0x - 8. 9x - 52.4x - 8.6x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 77.1 1.1x - - - 73.1x - 2.1x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,814.9 0.9x 0.8x 14.2x 5.9x 12.0x 30.9x 1.4x
InternetA rray, Inc. Media U nited S ta tes OTCP K INA R 0.0 1.1x - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 9.6 5.3x - - - - - -
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 13.6 0.4x - 0. 9x - 3.7x - 1.2x
K ings oft C o. Ltd. G aming C hina S E HK 3888 1,004.0 6.8x - 16.9x - 22.0x - 5.3x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 17.4 12.4x - - - - - -
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 18.3 - - - - - - 0.7x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 8.4 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,109.3 7.2x - 21.7x - 56.8x - 7.3x
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,294.2 1.9x - 13.8x - 17.9x - -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 13.5 17.3x - - - - - 11.9x
Multiplied Media C orpora tion Mobile C ana da T S XV T S XV :MMC 27.9 - 6.8x - - - - 19.8x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 213.3 3.3x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 722.6 3.3x - 12.2x - 35.8x - 18.1x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 329.1 2.0x - 6. 6x - 16.0x - 1.8x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,828.9 - - - - 2.6x 14.0x 0.7x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 78.7 2.5x - - - - - 10.4x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 30.7 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 32.7 - - - - - - 0.6x
Northgate T echnologies Limited Direct Marketing India BS E 590057 22.7 0.5x - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 194.2 0.0x - 0. 3x - - - -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,343.8 3.0x 2.6x 11.4x 9.5x 51.1x 13.9x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 194.6 0.5x 0.5x 14.4x 4.5x - 32.8x 2.7x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,089.3 0.4x 2.2x 0. 8x 4.3x 2.6x 12.2x 1.1x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 52.9 2.1x 1.8x 11.9x 5.8x - 10.2x 11.9x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 36.3 - - - - - - -
R eal V a lue E s ta tes , Inc. Media Is ra el OTCB B R V LU 9.6 - - - - - - -
S a hara Media Holdings , Inc. Media U nited S ta tes OTCB B S HH D 7.8 - - - - - - 9.5x
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,564.5 - - - - 2.3x 14.8x 0.4x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 454.4 1.5x 1.4x 12.7x 8.0x - - 2.7x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 644.9 3.2x - 49.0x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 3.3 0.5x - 3. 2x - 18.0x - 1.7x
S ocial Media V entures Inc. Dating U nited S ta tes OTCP K S MV I 0.0 4.6x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 23.8 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,277.0 3.5x 3.0x 7. 9x 6.8x 13.9x 15.9x 4.1x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 57.2 1.1x - 5. 3x - 19.0x - 25.8x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 7.8 - - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 39,917.6 27.7x - - - 69.1x - 30.7x
T he9 L imited G aming C hina N as da qG S NC T Y 214.0 - - - - 2.4x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 70.7 0.1x 0.1x 3. 2x - - - 0.9x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 98.0 0.3x 0.3x 7. 4x 8.4x - - 1.4x
Unilava C orporation Media U nited S ta tes OTCB B U NLA 0.0 0.0x - - - - - 1.0x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 1.9 0.4x - 43.2x - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 577.7 0.8x 0.9x 3. 9x 3.5x - 5.2x -
UO MO Media, Inc Media C ana da OTCB B UO MO 3.2 3.8x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 868.7 1.3x 1.4x 5. 4x 5.3x - 16.3x 4.7x
V elti P lc Media U nited K ingdom AIM VEL 149.7 1.7x - 8. 3x - 16.7x - 4.8x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 10.9 - - - - - - -
W ebzen Inc. G aming S outh K orea K OS E K OS E :A069080 128.2 2.8x - 25.3x - 67.4x - 1.2x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 18.7 3.9x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 4.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 230.8 2.9x - 10.6x - 31.0x - 6.6x
Y D Online C orp. G aming S outh K orea K OS E A052770 95.6 1.7x - 7. 9x - 9.7x - 2.9x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 14.4 1.1x - 10.2x - - - 0.7x
High 39,917.6 39.9x 16.4x 49.0x 22.5x 73.1x 36.1x 30.7x
Low 0.0 0.0x 0.1x 0. 3x 3.5x 0.0x 5.2x 0.0x
Average 903.2 4.9x 2.7x 11.9x 7.3x 23.3x 16.9x 6.0x
Median 64.6 1.7x 1.4x 9. 5x 6.1x 16.7x 14.4x 2.7x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 17

C omparable C ompany Analys is > Web 2.0

S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

United S tates 29 C hina 56, 945. 8 C hina 5,694. 6 C hina 4,496. 8 C hina 2, 262. 8 C hina 49. 0%
C hina 10 U nited S ta tes 5, 465. 2 S weden 3,266. 2 United S tates 3,752. 1 United S tates 393. 7 A us tralia 42. 8%
C a na da 9 J a pan 4, 440. 9 J apan 740. 1 S weden 1,942. 0 S weden 274. 4 T aiwan 37. 3%
S outh K orea 9 S weden 3, 266. 2 T aiwan 515. 6 C a na da 992. 4 J a pa n 213. 0 J apan 24. 3%
J a pa n 6 C anada 2, 538. 6 C anada 282. 1 S outh K orea 740. 1 C a na da 199. 5 S outh K orea 20. 1%
T a iwa n 3 S outh K orea 1, 845. 8 Hong K ong 237. 5 J a pa n 680. 8 S outh K orea 133. 5 S weden 14. 1%
G erma ny 3 T a iwa n 1, 546. 9 S witzerla nd 205. 8 T a iwa n 404. 6 T a iwa n 65. 0 Italy 13. 1%
Aus tralia 2 G ermany 318. 0 S outh K orea 205. 1 Hong K ong 334. 2 Ita ly 31. 0 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 237. 5 R us s ia 193. 9 Ita ly 236. 1 R us s ia 20. 4 Hong K ong 6. 0%
India 1 S witzerla nd 205. 8 U nited S ta tes 188. 5 G erma ny 171. 4 Hong K ong 20. 0 S witzerla nd 5. 4%
F inla nd 1 R us s ia 193. 9 Ita ly 136. 8 R us s ia 156. 3 G erma ny 9. 7 G ermany -7. 4%
United K ingdom 1 Ita ly 136. 8 G ermany 106. 0 Ma lays ia 78. 5 Aus tralia 4. 9 C anada -10. 6%
Ita ly 1 F inland 51. 3 F inland 51. 3 S witzerla nd 63. 0 S witzerla nd 3. 4 U nited S ta tes -15. 4%
Hong K ong 1 Malays ia 36. 4 Malays ia 36. 4 India 47. 7 United K ingdom -2. 7 F inland NA
S weden 1 Aus tralia 29. 4 India 20. 2 Aus tralia 17. 8 F inla nd -18. 5 India NA
R us s ia 1 India 20. 2 Aus tralia 14. 7 F inla nd 4. 5 India -51. 2 U nited K ingdom NA
Ma lays ia 1 U nited K ingdom 5. 6 U nited K ingdom 5. 6 United K ingdom 0. 0 Ma lays ia -85. 2 Mala ys ia NA

G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%

Figure 21. Comparison by Country

Source. Capital IQ

C omparable C ompany Analys is > Web 2.0

S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

OT C B B 16 S E HK 40, 705. 3 S E HK 13,568. 4 OM 1,942. 0 Na s daqG S 1, 918. 2 NY S E 68. 2%

Na s daqG S 14 Nas da qG S 22, 230. 0 OM 3,266. 2 S E HK 607. 9 S E HK 897. 1 AS X 42. 8%
K OS E 8 TS E 4, 129. 4 NY S E 1,594. 3 Na s daqG S 508. 5 OM 274. 4 S E HK 40. 6%
T S XV 5 OM 3, 266. 2 Nas da qG S 1,587. 9 CM 236. 1 TS E 187. 1 GTS M 37. 3%
TS E 5 K OS E 1, 799. 1 TSE 825. 9 NY S E 202. 3 NY S E 137. 9 Nas da qG S 30. 7%
Na s daqG M 4 NY S E 1, 594. 3 GTS M 684. 0 RTS 156. 3 K OS E 115. 4 TSE 24. 7%
TS X 3 GTS M 1, 368. 0 OS E 311. 5 OS E 116. 4 GTS M 65. 0 OS E 22. 3%
XT R A 3 XT R A 318. 0 K OS E 224. 9 TS E 112. 9 CM 31. 0 K OS E 18. 2%
OT C P K 3 OS E 311. 5 SWX 205. 8 GTS M 110. 5 OS E 25. 9 OM 14. 1%
S E HK 3 TS X 253. 3 R TS 193. 9 Na s daqG M 97. 3 Na s daqG M 25. 2 CM 13. 1%
AME X 2 Nas da qG M 237. 6 CM 136. 8 K OS E 86. 1 RTS 20. 4 R TS 13. 1%
AS X 2 SWX 205. 8 XT R A 106. 0 K LS E 78. 5 XT R A 9. 7 T S XV 9. 0%
GTS M 2 R TS 193. 9 TSX 84. 4 SWX 63. 0 AME X 6. 0 Nas da qG M 8. 6%
SWX 1 OT C B B 166. 1 Nas da qG M 59. 4 XT R A 57. 1 AS X 4. 9 S WX 5. 4%
HL S E 1 CM 136. 8 HLS E 51. 3 BSE 47. 7 SWX 3. 4 XT R A -7. 4%
CM 1 T S XV 97. 3 AME X 40. 0 TS X 46. 5 AIM -2. 7 A ME X -27. 7%
BS E 1 AME X 79. 9 K LS E 36. 4 AME X 26. 4 TS X -7. 0 TSX -35. 8%
OS E 1 HLS E 51. 3 BS E 20. 2 AS X 8. 9 T S XV -7. 2 OTCB B -48. 2%
NY S E 1 OT C P K 48. 8 T S XV 19. 5 T S XV 8. 6 OT C P K -17. 9 OTCP K NA
AIM 1 K LS E 36. 4 OT C P K 16. 3 HL S E 4. 5 HL S E -18. 5 A IM NA
OM 1 AS X 29. 4 AS X 14. 7 OT C B B 2. 4 BSE -51. 2 BSE NA
RTS 1 BS E 20. 2 OT C B B 10. 4 OT C P K 0. 6 OT C B B -58. 3 HLS E NA
K LS E 1 AIM 5. 6 AIM 5. 6 AIM 0. 0 K LS E -85. 2 K LS E NA

G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 18

Financ ing - L as t Three Months (US $ m)

Fin. Amount (Million) Type of financ ing
Month C ompany Name C ountry Angel/S eed Debt financ ing S eries A S eries B S eries C S eries D G rand Total
Nov-09 R ockYou US A 50. 0 50. 0
P laydom US A 43. 0 43. 0
S ezmi US A 25.0 25. 0
Millennial Media US A 16.0 16. 0
Zynga US A 15.0 15. 0
E vernote US A 10.0 10. 0
C ubeTree US A 8.0 8.0
Alic e.c om US A 6.0 6.0
E ventbrite US A 6.0 6.0
P lac ec as t US A 5.0 5.0
AppNexus US A 5.0 5.0
Altruik US A 4. 7 4.7
C redit K arma US A 2. 5 2.5
B lekko US A 2. 5 2.5
P layfire UK 2. 1 2.1
S impleG eo US A 1. 5 1.5
P ros per.c om US A 1. 0 1.0
Adfonic UK 0. 6 0.6
S coopler US A 0. 5 0.5
Nov-09 Total 2.6 1.0 52.3 44.0 52.0 52.5 204.4

Dec -09 Zynga US A 180. 0 180. 0

Youku C hina 40. 0 40. 0
Zoos k US A 30. 0 30. 0
G roupon US A 30.0 30. 0
L ithium US A 18.0 18. 0
gW allet US A 12. 5 12. 5
MobG old C hina 12.0 12. 0
Movik Networks US A 8.5 8.5
G owalla US A 8.4 8.4
G ogii US A 8.2 8.2
L iveMoc ha US A 8.0 8.0
S onicMule US A 8.0 8.0
kaC hing US A 7. 5 7.5
S eekingAlpha Is rael 7.0 7.0
P ageonce US A 6. 5 6.5
G enius .c om US A 6. 5 6.5
C urs e US A 6.0 6.0
AlikeL is t US A 5. 0 5.0
P owerR eviews US A 4.9 4.9
S maato US A 4.5 4.5
S C VNG R US A 4.0 4.0
Tonc hidot J a pan 4. 0 4.0
Twilio US A 3. 7 3.7
5 Minutes C hina 3. 5 3.5
J anR ain US A 3. 3 3.3
S toc kTwits US A 3.0 3.0
Article One P artners US A 3. 0 3.0
W his key Media US A 2. 5 2.5
Appolic ious US A 2. 4 2.4
G rapes hot UK 2. 4 2.4
C enter'd US A 1.9 1.9
W ePay US A 1. 7 1.7
J inni Is rael 1. 6 1.6
Vis ible Tec hnologies US A 1. 0 1.0
G lobalMotion Media US A 1. 0 1.0
Dec -09 Total 2.5 1.0 58.0 101.5 210.9 76.5 450.4

J an-10 Quantc as t US A 27.5 27. 5

Vis ible Tec hnologies US A 22. 0 22. 0
G uvera Aus tra lia 20.0 20. 0
S pic eworks US A 16.0 16. 0
Aggregate K nowledge US A 9.0 9.0
Flurry US A 7.0 7.0
G aikai Netherla nds 5. 0 5.0
E yeka F ra nce 4.3 4.3
J elli US A 2. 0 2.0
OneForty US A 2. 0 2.0
B lippy US A 1. 6 1.6
G raphic.ly US A 1. 2 1.2
S ocialGO US A 0. 8 0.8
J an-10 Total 4.4 8.2 11.3 72.5 22.0 118.4

G rand Total 9.5 2.0 118.5 156.8 335.4 151.0 773.3

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 19

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

C ompany HQ Webs ite Des cription
Aggregate K nowledge US A www. aggrega teknowledge. com Aggregate K nowledge, Inc. provides s olutions that ena ble cus tomers to levera ge real-time cons umer interes t into their advertis ing and
marketing campaigns . It offers P ique Dis covery Network that connects cons umers to the products , content, and items from various reta ilers
a nd media compa nies . Aggregate K nowledge s erves retailers and media companies . T he company was founded in 2005 a nd is bas ed in
S an Mateo, C alifornia.
B lippy US A
E cho Nes t US A www. the. echones t. com T he E cho Nes t C orpora tion is a mus ic intelligence company. T he company develops mus ic s earch, and pers onaliz ation and interactive
a pplica tions on a platform that reads about and lis tens to online mus ic. It offers mus ic information s ervices to developers and partners
through its da ta mining and machine lis tening platform. T he E cho Nes t C orporation was incorporated in 2005 a nd is bas ed in S omerville,
E yeka F rance www. eyeka . com EMas s achus
yeka is anetts .
online platform that enables brands , media, content owners , and mobile operators to s eize opportunities in new media . T he
company helps filmmakers , photographers , animators , and graphic des igners to s hare abs tra ct art, a rchitecture a nd des ign, beauty and well-
being, bus ines s s ettings , concepts and s ymbols , emotions and feelings , flora and fauna, food and drink , medical and health, nature and
lands ca pes , people and relations hips , s port and leis ure, technology, and travel and ethnology, as well a s commerce, indus try, and trans port;
a nd objects , materials , and textures . E yeka was founded in 2006 and is headqua rtered in P aris , F rance.
F lurry US A www. flurry. com F lurry, Inc. offers mobile application analytics , deployment, and monetization tools for mobile application developers . T he company was
formerly known a s S V B T echnologies , Inc. and changed its name to F lurry, Inc. in 2006. T he compa ny was founded in 2005 and is bas ed in
S an F rancis co, C alifornia.
G aikai Netherlands www. gaikai. com G aikai B . V . offers online games . T he company was founded in 2008 and is headquartered in Alis o V iejo, C alifornia.
G raphic.ly US A www. graphic.ly G raphicly is a digital content delivery s ys tem and community platform for the publis hing world. G raphic.ly’s firs t product focus es on comic
publis hers , creators and enthus ias ts , and provides a n immers ive s ocial experience and ma rketplace around digital comics and as s ociated
merchandis e. T he company is looking to expand its community and content pla tform and become the de facto s olution for print media .
G uvera Aus tralia www. guvera. com G uvera Limited provides a n online s olution for downloa ding free entertainment content by avoding illegal downloads . It operates a W eb
interface, an acces s point through which its us ers a cces s and s hare digital entertainment content, s uch as mus ic, film and televis ion content,
a nd games in a wa y that their fa vorite artis ts get paid for each file they download. T he compa ny als o provides an online advertis ing medium.
It s erves corporations and their adverting agencies , a s well as the entertainment indus try. G uvera L imited was founded in 2008 and is bas ed
in R obina, Aus tralia .
J elli US A www. jelli.net J elli, Inc. operates online radio s tation. T he compa ny was incorporated in 2007 a nd is bas ed in S an Mateo, C alifornia.
L iving S oc ial US A www. livings ocial. com L ivingS ocial offers a collection of us er-review apps acros s the mos t popular s ocial networks (F a cebook, MyS pace, Hi5, B ebo, and O rkut).
T he apps are des igned to let people organize and dis cover their favorite book s , movies , mus ic, res taurants , games , a nd beer.
Mochi Media US A www. mochimedia. com Mochi Media, Inc. provides tools and s ervices to s upport game developers . Its products include MochiAds , an online games network for
game developers , advertis ers , a nd publis hers ; MochiB ot, a traffic monitoring tool for flas h content; and MochiLand that provides articles ,
tutorials , and updates for the gaming community. T he company’s online game network enables developers to monetize, track, and dis tribute
games acros s the Internet, as well a s enables advertis ers to reach engaged audience through games ; and publis hers to a cces s ga ming
content to enga ge and monetize us ers on their s ite. Mochi Media , Inc. wa s founded in 2005 a nd is hea dquartered in S a n F ra ncis co,
C alifornia.
OneF orty US A www. oneforty.com O neforty, Inc. provides online clearing s ervices for applications related to T witter. T he company was founded in 2009 and is bas ed in
C ambridge, Mas s a chus etts .
Quantcas t US A www. quantcas t.com Q uantcas t is a media meas urement, web analytics s ervice tha t a llows us ers to view audience tra ffic for millions of s ites . P articipa nts in
Q uantcas t’s direct meas urement program include F ox, C B S , B elo C orporation, AccuW eather, S lide, a nd IDG .
R eframe It US A www. reframeit. com R eframe It allows web us ers to comment on the text of a ny web page without the permis s ion of the s ite. R eframe It’s mis s ion is to offer the
public a s pace right next to the web where news papers , bloggers , companies , governments , non-profits and individuals a re able to hold one
a nother accountable for the information they convey a nd withhold from the public. T his lets people with relevant expertis e confirm good
information and it lets them challenge informa tion which is inaccurate, mis leading and deceptive s o that the broader community of us ers can
S ocialG O US A www. s ocialgo. com Sbenefit
ocialGfrom it.
O creates a flexible, fun s ocial networking webs ite. It is s ta nd-alone or can s imply be bolted onto an exis ting s ite if need be. As a
brows er bas ed s ervice, it is operated from dedicated s ervers a nd does not require s oftwa re downloa ds . In this way, members of a network
can acces s it from anywhere in the world.
S piceworks US A www. s picework s . com S piceworks , Inc. des igns , develops , and delivers s ocial information technology mana gement s oftware applications for s mall and medium
bus ines s es in the United S tates . It offers an IT Des ktop, which provides network inventory, help des k, reporting, monitoring, and
troubles hooting of s oftware a nd hardware as s ets in the networks . T he company provides a downloadable P ower Ma nager plug-in that
enables information technology profes s ionals to a utomatically regulate the power cons umption of networked computers . It s erves various
organiz ations , including s ys tems integrators , government agencies , bus ines s es , ma nufacturers , educationa l ins titutions , and non-profits .
S piceworks , Inc. was founded in 2006 and is headqua rtered in Aus tin, T exas .
Vis ible Technologies US A www. vis ibletechnologies . com V is ible T echnologies , Inc. provide online brand mana gement s olutions for companies and individuals . T he company’s products include
truP ULS E , a R R S feed-ba s ed s ocial media monitoring and a nalys is application; truV OIC E , a s ocial media monitoring, analys is , and
participation application; a nd truS E AR C H, a s earch application that provides key phras e bas ed drilldown, topic dis covery, and conceptual
s earch functionalities . It a ls o offers truINS IG HT , a s et of profes s iona l s ervices and reports for tracking and meas uring s ocia l media
convers ations and truR E P UT AT IO N, a s et of s ervices for managing, protecting, a nd repairing corpora te and individual reputa tions online.
T he company partners with W P P ; B eyond Interaction; B urs on Digital; M80; Omniture, Inc. ; S pring C reek G roup; W underman; a nd C oncepts
& S tra tegies , Inc. V is ible T echnologies wa s founded in 2005 and is bas ed in B ellevue, W as hington with an a dditional office in New Y ork,
New Y ork.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 20

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.

I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.

T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550

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