Advanced technology solutions for social marketing

Acquisition Opportunity June 2010

&A

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TECHLIGHTENMENT Acquisition Opportunity

Executive Summary
Advanced technology solutions for social marketing
Company overview
Founded in 2007, UK based Techlightenment (TL) is a pioneer in social media marketing. It provides social media services, data modelling-based strategies and applications, and the most advanced selfservice platform on the market today (named Alchemy) to run direct response and brand campaigns on social networks. The company has doubled its revenues every year since inception and is on track to reach $6.8m revenues in 2010.

Service overview

A data-focused social media specialist: TL provides brand and direct response solutions for advertisers and agencies using its advanced data modelling and actionable analytics.
Social strategy & analytics: advanced social analytics enable user interaction and influencer measurement Social Apps: TL has developed some of the most popular Facebook brand applications (e.g. The Bob Dylan App.). Direct response campaigns are run on internally developed Alchemy platform

A booming market
Social media advertising took off in 2009 to reach $2.2bn, driven by Facebook and other social media hyper growth. It is expected to grow 12x to $25.7bn by 2014, driven by continued growth of audience and dwell time as well as accelerating monetisation. Despite this significant market size and growth, the social media advertising market is still highly fragmented.

Alchemy, the industry leading platform for social marketing campaigns. It is a self-service platform for advertisers and agencies and displays a unique set of management and optimisation features
Micro-targeting scalability: generates several thousands of adverts per campaign thanks to dynamic messaging system Granular control over campaign parameters as it integrates with numerous analytics & tracking systems Constant optimisation through real-time reporting

Social CRM tools to optimise marketing campaigns

Source: JPMorgan, PWC, LD&A estimates &A Nom du fichier complter TECHLIGHTENMENT Acquisition Opportunity 2

Executive Summary
A leading player with unique technology and expertise in a booming industry
Prestigious client portfolio
In no time, TL has gained recognition from Tier-1 brands and agencies

Key Investment Considerations

A leading social media specialist, with unique advertising tools, deep data-mining expertise and technology platform Provider of the most advanced self-service platform for social marketing, Alchemy: micro-targeting and micromessaging with full scalability and optimisation Strong ties with social networks: the company was one of the first Facebook Ads API alpha partners and has preferred developer status. Techlightenment is also the only European MySpace development partner Great commercial and financial success: Tier-1 clients and 100%+ growth since inception with high profitability

Across a broad range of industries: entertainment, technology, telecommunications, healthcare, etc. International customers (UK, the US, Continental Europe, etc.)

Key financials
Revenues doubled every year since inception and are poised to reach $6.8m in 2010 TL is highly profitable with over 50% gross margin and over 20% EBIT margin

Strategic opportunity
Capitalise on the exploding social advertising market opportunity Combine TLs technology leadership and market recognition with broader client base to quickly capture market share Integrate TLs flexible management tools with adjacent offering (analytics, SEM platform, etc.) to drive strategic product synergies Consolidate a company with strong revenue traction and high profitability

Source: Company reporting &A Nom du fichier complter TECHLIGHTENMENT Acquisition Opportunity 3

Disclaimer
The sole purpose of this document is to assist the recipient in deciding whether he/she might be interested to proceed with discussions and/or a further investigation of TECHLIGHTENMENT (thereafter TECHLIGHTENMENT or the Company) in relation to a potential acquisition or investment transaction. The use of this document and/or the information it contains, directly or indirectly, for a purpose other than considering a potential acquisition or investment transaction of TECHLIGHTENMENT is prohibited and legal action will be taken in that case. This document has been prepared in cooperation with Lorentz, Deschamps & Associs (thereafter LD&A) and Pagemill Partners LLC (thereafter Pagemill), advisors to the company, and is based on information that has been provided by the management of TECHLIGHTENMENT. No representation or warranty is made as to the accuracy or completeness of the information in this document and other information provided in respect to the potential investment in or acquisition of TECHLIGHTENMENT. The information in this document is confidential. Any disclosure of information in this document without prior written consent of the Company and/or LD&A or Pagemill will be followed by legal action. Neither the Company nor any of its directors, officers or employees makes any warranty or representation, expresses or implied, concerning the completeness of the information contained herein. This document has been finalized in June 2010 and does not reflect developments that took place after its finalization. All communications, enquiries and requests should be directed to LD&A personnel listed below as representatives of the Company. The management, employees, shareholders or customers of the Company should not be contacted directly or indirectly without LD&As or Pagemills expressed consent.

Franois Mazoudier Partner fmazoudier@ldaglobal.com + 44 797 345 1881 Matthieu Rosset Principal mrosset@ldaglobal.com +33 1 70 08 76 15
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Milledge Hart Managing Director mhart@pmib.com (1) 650-354-4050 Christian Bennett Principal cbennett@pmib.com (1) 650-354-4085
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