RANDY ALTSCHULER

Randy Altschuler made millions by putting American workers out of a job. In 2000, Altschuler founded OfficeTiger, an outsourcing company that performed office work for American companies in India. Altschulers his own clients said OfficeTiger allowed them to hire fewer employees. Altschuler was an enthusiastic proponent of the outsourcing industry, with press reports describing him as devoted to making outsourcing happen and undermining the assumption that only the manufacture of goods, not the provision of services, could be exported. Altschulers business partner said that OfficeTiger hoped to be leading the move of white-collar jobs from the U.S. Additionally, Altschulers companies failed on numerous occasions to pay the taxes they owed.

Altschuler Made A Fortune By Outsourcing American Jobs

ALTSCHULERS BUSINESS OFFICETIGER PERFORMED OUTSOURCED OFFICE WORK FOR AMERICAN COMPANIES
OfficeTiger Went Beyond Outsourcing Call Centers Or Back-Office Work Of Secondary Importance And Instead Convinced Companies To Outsource Core Functions That Require OfficeTiger Professionals To Apply Their Judgment. According to eBusinessForum, While most BPO companies thrive on call centres or back-office work of secondary importance, OfficeTiger has targeted the high-end segment, offering knowledge-based outsourcing that is industry-focused, judgment-based and supports core functions of a clients business. These are mission-critical services, requiring OfficeTiger professionals to apply their judgmentsuch as preparing a key presentation for a US chief financial officer within an hour, providing audit support for a global accounting firm or undertaking financial research and analysis for bankers. [eBusinessForum, 3/22/06] eBusiness Forum: OfficeTiger Sold The Idea That U.S. Companies Should Outsource Office Functions Considered Critical. According to eBusiness Forum, Initially, it was not easy for OfficeTiger to sell the idea to US companies that they should outsource office functions considered critical. While companies were used to the outsourcing of information technology (IT) support services, routine clerical work, and well-defined functions like customer support through call centres, core office functions were always handled in-house. However, over time, OfficeTiger was able to convince more and more companies about the benefits of outsourcing these functions. OfficeTiger continues to focus on judgment-based outsourcing services such as print and publishing solutions (from concept through design and composition to pre-press services and release-to-print), research and data analytics (such as business information services, financial analytics and strategic market research) and financial management services. That OfficeTiger offers real-time solutions is evident in that about one-third of its assignments are delivered in less than an hour. [eBusinessForum, 3/22/06]

Altschuler Said OfficeTiger Employees Did Very Analytical WorkNot Just Black-AndWhite Rote Transactional Work. According to American Banker, Workers at OfficeTiger's facilities in Chennai, India; Colombo, Sri Lanka; and the Philippines already do very analytical work, such as modeling cash flows for investment bankers, said Randy Altschuler,a co-founder and co-chief executive of OfficeTiger, which is based in New York. It's not just black-and-white rote transactional work. [American Banker, 9/12/05] OfficeTiger Provides Support Services To Companies And Firms, Including Data Analytics And Research, Transaction Processing, Pre-Media And Financial Management. According to Securities Industry News, The company offers four categories of support services to investment banks, law firms, consulting and accounting firms and others: data analytics and research, transaction processing, pre-media and financial management. Data analytics and research includes business information services, strategic market research, data analytics and financial analytics, while transaction processing supports the digitization, processing, access and management of electronic content. Premedia services involve preparation of documents from creative and design stages to word processing and desktop publishing. Under financial management the company supports and standardizes specialized finance and accounting functions, including financial reporting, internal financial analysis, payables and receivables management, and billing and invoicing. [Securities Industry News, 4/18/05] OfficeTiger's Clients Include Seven Of The 12 Largest Wall Street Banks, A Big Four Accounting Firm, And Other Major Companies. According to the New Yorker, OfficeTiger's clients included seven of the twelve biggest banks on Wall Street...Office Tiger also performed work for a Big Four accounting agency, several white-shoe Northeastern law firms, an insurance conglomerate, two large publishing concerns, a Madison Avenue advertising agency, global management consultancies, and other enterprises whose identities were not divulged to workers of the resume-typing rank. [New Yorker, 7/5/04] New Yorker: OfficeTiger Undermin[ed] The Assumption That Only The Manufacture Of Goods, Not The Provision Of Services, Could Be Exported. According to the New Yorker, And, by the time Randy and Joe turned thirty and outsourcing had become a term of art, they were undermining many of the assumptions that Americans try to nurture while watching their nation's jobs go overseas...One false assumption had been that only the manufacture of goods, not the provision of services, could be exported. [New Yorker, 7/5/04] Newsday Reported Altschuler And His Partner Sold OfficeTiger For $250 Million. According to New York Newsday, Bishops sharpest attacks focus on Altschulers former company OfficeTiger, which supplied back-office jobs from Asia to American and foreign companies. Altschuler and a partner later sold the company for $250 million. [New York Newsday, 9/15/10]

ALTSCHULER WAS AN ENTHUSIASTIC BOOSTER FOR OUTSOURCING

Time Magazine: Altschuler Is Devoted to Making Outsourcing Happen According to Time Magazine, Another factor speeding things up is the development of an industry devoted to making outsourcing happen, thanks to entrepreneurs like Randy Altschuler and Joe Sigelman. Just five years ago, they were junior investment bankers at the Blackstone Group and Goldman Sachs, one in New York City, the other in London. During one particularly long night of proofreading PowerPoint slides and commiserating by phone about finding yet another error courtesy of their companies' in-

house document service, they had an epiphany. They would find a better way of doing that work. This was at the height of the dotcom boom, and everyone they knew was trying to figure out a way to Silicon Valley. These two had a different idea. They would go to India, set up a team of accountants and desktop-publishing experts and persuade investment banks in New York to outsource their confidential financial documents and client presentations halfway around the world. [Time, 3/1/04] Business Times Singapore: Altschuler And His Business Partner Jumped Aboard The Outsourcing Train, Destination India. According to the Business Times Singapore, While highly-paid Wall Street analysts mutter darkly about losing their jobs to bright young sparks working out of New Delhi or Mumbai, two Harvard Business School buddies have simply jumped aboard the outsourcing train, destination India. Joseph Sigelman and Randy Altschuler started Office Tiger, a Chennai-based outsourcing company. [Business Times Singapore, 8/23/03] Altschuler Described OfficeTigers Brand Of Outsourcing As The Soup Du Jour. Its What Everybody Wants Right Now. According to Investment Dealers Digest, Not surprisingly, a number of outsourcers-firms founded by U.S.-trained consultants, technology experts and investment bankers but with operations in India-have sprung up to meet the growing demand. "This is the soup du jour. It's what everybody wants right now," says Randy Altschuler, who worked in the Blackstone Group's real estate private equity group before co-founding Office Tiger B.V. , a New York-based outsource firm. [Investment Dealers Digest 11/3/03] OfficeTiger Co-CEO Joe Sigelman: We Hope To Be Leading The Move Of White-Collar Jobs From The U.S. According to the Los Angeles Times, Sigeleman said We hope to be leading the move of white-collar jobs from the U.S. [Los Angeles Times, 8/29/04] Altschuler Estimated That 10% Of The Work At Top Law Firms Would Be Shipped Offshore. According to Crains New York Business, 'Since the practice is relatively new, statistics have yet to be gathered on its growth. But it represents a huge potential market. The country' top 200 law firms spend more than $20 billion a year for back-office work' according to Randolph Altschuler, chief executive of Manhattan-based outsourcing firm OfficeTiger. He says that at least 10% of that work might be shipped offshore in the next few years. [Crains New York Business, 9/13/04] Altschuler Claimed OfficeTiger Allowed Other Corporations To Free Their Employees From Grunt Work. According to New York Newsday, Altschuler said the company did not outsource American jobs but supplied back-office services so firms in this country and elsewhere could free their workers from grunt work, so they could be more productive. Bishop backers respond that Altschuler can't back away from years of interviews and videos in which he touted his firm's outsourcing prowess. [New York Newsday, 9/26/10] Altschuler Described Outsourcing As A Strategic Enabler And A Means To Increase Profitability. According to a Hildebrandt International press release obtained via Business Wire, Altsculer said, We've seen a dramatic increase in the number of requests for outsourced legal services in both the US and UK, which indicates that the legal industry is beginning to embrace outsourcing as both a strategic enabler and a means to increase profitability. [Business Wire, 6/7/04] Altschuler Defended OfficeTiger And Claimed His Company Allows Other Companies The Opportunity To Reinvest In American Workers. According to a transcript of CNN In The Money, Altschuler was asked Randy, obviously this outsourcing thing has become a tremendous hot-button topic. A lot of people are pointing fingers. I'm a real free market guy. I don't have a problem with what you guys are doing. But how do you respond to people who say you are un-

American? What do you have to say about that? He responded, There are two trends in outsourcing right now. One is all about cost cutting, and taking a job here, firing somebody here and moving it off shore. That's not what Office Tiger does. We are involved with the second trend, which is how can we enhance the services and the jobs that Americans are doing here domestically? And that's what we're really focused on. It's a very different kind of outsourcing I think it's a question if companies that are outsourcing right now are they going to take the savings from that, and are they going to invest that in their own employees and skill them up and allow them to focus at highly value added services for their clients? That's where Office Tiger, and companies like Office Tiger can add a lot of value. Enhancing what those companies are doing today. I think American companies have just cut costs and don't do anything with those savings; they are not going to work. [CNN, CNN In The Money, 2/28/04] OfficeTiger Co-CEO Joe Sigelman Called Concerns About Outsourcing Political Entertainment. According to the New Yorker, Seriously behind schedule now, Joe skipped to the front of the security gantlet at the entrance to the firm, where the pocketbooks and backpacks of departing workers were being searched to prevent the theft of Western corporate secrets. (The investigations that day turned up Who Moved My Cheese? and the Indian edition of Cosmopolitan.) The outsourcing backlash? Joe was saying. To him, it was political entertainment, music for Presidential campaigns. In the real world, its inexorable. This is radical global change, and it is going to happen more and more, not just because the labor in developing countries is cheaper but because the work is often done better. Businesses will have to outsource to stay competitive, and eventually the American public will get used to it. Look, thats what a free market is all about. [New Yorker, 7/5/04]

ALTSCHULERS OUTSOURCING ALLOWED COMPANIES TO REDUCE THEIR AMERICAN WORKFORCE

One Law Firm Said OfficeTiger Allowed It To Lay Off 50 Employees. According to the Los Angeles Times, Allen & Overy, a large English law firm, has 74 people working for it full time at OfficeTiger, which allowed it to lay off 50 people back home this year. Yet the firm's head of operational services, Steven Chernikeeff, says the firm didn't come here for cost cutting. The main driver was getting a better value for the money. When we advertise for document processors in England, we don't get people with master's degrees. And they've got passion for their work here. You don't always see that in the West. [Los Angeles Times, 8/29/04] OfficeTigers American Clients Said OfficeTiger Allowed Them To Hire Fewer American Workers. According to Dow Jones Newswire, While a junior analyst in the U.S. could be paid $60,000 or more a year, a similar position in India would cost less than a quarter of that, say outsourcers... One possible result of the move to outsource research-related work is that Wall Street will reduce the number of junior analysts it hires each year, suggests an investment banker whose company works closely with OfficeTiger. [Dow Jones Newswires, 9/24/03]

ALTSCHULER EXPLOITED INDIAN EMPLOYEES AND KEPT HIS AMERICAN WORKFORCE AS SMALL AS POSSIBLE
Altschuler And Sigelman Were Inspired To Found OfficeTiger Because Of Their Dissatisfaction With American Workers. According to Securities Industry News, Altschuler and Sigelman, both 34, conceived their company when they were both working as investment bankers in the late 1990s--Altschuler at Donaldson, Lufkin & Jenrette, Sigelman at Lazard Freres and Goldman

Sachs International. They would commiserate in long-distance phone calls about their firms' poor quality of back- office support. To get PowerPoint presentations together, we would go to our respective in-house typing pools, Sigelman recalls. Often that meant dealing with aspiring artists and actors who preferred not to be working in the restaurant business. They're half-reading the script for the play they'll be performing the next day and half doing your work. Brainstorming about solutions, the pair pondered ways to do the job better and, in the bargain, save money for clients. [Securities Industry News, 4/20/05] 2005: OfficeTiger Employed 10 Times As Many Indians As Americans. According to the Washington Times, Many Americans think an outsourced job is an existing job moved offshore. But many outsourced jobs are created offshore in the first place. On Feb. 11, USA Today told of OfficeTiger, the sort of young technology company that once created thousands of high-paying jobs in the U.S.A., fueling sizzling economic growth. The 5-year-old startup firm employs 200 Americans and 10 times as many Indians. [Washington Times, 2/19/05] Altschuler Didnt Dispute Estimates That Indian Labor Costs Were One-Fifth What They Were In The U.S. According to USA Today, OfficeTiger workers in Chennai do the work, then ship it back to the USA over the Internet for a fraction of the cost if done in the USA. Altschuler wouldn't disclose wage rates in India. But he didn't dispute VC estimates that labor costs there are often one-fifth those in the USA. [USA Today, 2/11/05] OfficeTiger Paid Indian Employees Roughly A Tenth Of What A Comparable Job Would Pay In The U.S. According to the New Yorker, Office Tiger paid its Indian workers roughly a tenth of what would be paid for comparable work in the United States. [New Yorker, 7/5/04] Officetiger's Overseas Locations Featured Unforgiving Security. According to the New Yorker, at OfficeTiger's overseas offices, labor [is] carried out in unmarked rooms with filmcovered windows, closed-circuit cameras, and electronic security so unforgiving that as the typist finished the resume from Plano three bankers, accidentally locked in a nearby room, were frantically pounding on a door. [New Yorker, 7/05/04] OfficeTiger Maintained A Skeletal Staff In New York. According to Business Line, In New York, the company has skeletal staff strength for management administration, project management, technology integration and client support. [Business Line, 9/16/03] Altschuler: In India You Get A Much Higher Standard Of Person Doing Assistant Work. According to Financial News Daily, Altschuler said of his Indian employees, These are the kind of people who would be professionals, but instead they are assisting the professionals. In India you get a much higher standard of person doing assistant work. [Financial News Daily, 3/23/03]

ALTSCHULER SAT ON THE BOARD OF GLOBALLOGIC, AN OUTSOURCING COMPANY THAT DID RESEARCH AND DEVELOPMENT WORK
Altschuler Was Named To The GlobalLogic Board Of Directors In 2007. According to EFY Times, GlobalLogic Inc., a provider of global product development services, has named Randolph Altschuler as a member of the privately held companys board. Altschuler has nine years of experience in financial services. Specialising in private equity and investment banking, he has worked at The Blackstone Group as well as at Donaldson, Lufkin and Jenrette. He has also served as an

assistant to the chief executive officer of Deutsche Bank North America, focusing on both strategic and management issues. [EFY Times, 4/25/07] GlobalLogic Specialized In Outsourced Product Development Work From Lower-Cost Countries, Specifically India, Ukraine And China. According to InformationWeek, GlobalLogic is a 3,000-person company specializing in outsourced product development work from lower-cost countries, specifically India, Ukraine, and China. Last week, it raised a fresh $30 million in venture capital, bought a 400-person Ukrainian R&D company, Validio Software, and kicked off a strategy to push deeper into companies' product development processes. [InformationWeek, 2/11/08] GlobalLogic Had 3,000 Engineers, All Of Which Were Either In India Or Ukraine. According to Globes, GlobalLogic employs 3,000 engineers, two-thirds of whom are in India, and one third in Ukraine. The company provides global product development services, especially embedded and mobile products. The acquisition of InterObject is the company's third acquisition this year, following Chinese firm Dalian 3 CIS and Ukrainian firm Validio Software. [Globes, 10/22/08] A GlobalLogic Business Partner Called GlobalLogic An Acknowledged Leader In The Outsource Product Market. According to the United News of India, GlobalLogic, a global leader in software product development, today signed a master service agreement with Movius Interactive Corporation, a leading provider of messaging, collaboration and interactive mobile media solutionsBy joining forces with GlobalLogic, an acknowledged leader in the outsource product development market, Movius will have immediate access to world class processes and methods for software product development and customization, said Jay Whitehurst, Senior Vice President, Products and Technology, Movius. [United News of India, 8/3/09]

Altschulers Companies Failed To Pay Their Taxes

OFFICETIGER
We have identified three tax liens and warrants filed against OfficeTiger. One of the liens was paid in full, while another remains outstanding. The third lien resulted in a judgment against OfficeTiger. The liens are detailed in the following table: Creditor Type Of Lien City Tax Filing Number 002433930 Amount Date Filed Current Status Outstanding Released 5/20/08 Judgment Filed 5/20/02

City of New $990 6/30/08 York State of New State Tax 002381419 $6,425 2/2/08 York Warrant New York City New York 7050937 $448 5/20/02 Department of City Tax Finance Warrant [Nexis Comprehensive Business Search, OfficeTiger LLC Accessed 7/10/12]

OfficeTiger Holdings $6,425.60 Tax Warrant Issued After Altschuler Left Company, For Tax Periods Altschuler Was With Company. According to a Nexis Comprehensive Business Search, on February 4, 2008 the New York State department of taxation issued a warrant against OfficeTiger Holdings Inc. The warrant was for tax periods in 2005 and 2006 when Altschuler was still with the

company. The lien was just for penalties and interest and was paid in full on May 20, 2008.. [Nexis Comprehensive Business Search, OfficeTiger LLC Accessed 7/10/12] OfficeTiger Had New York City Tax Lien Filed For $990.87 For 2006-2007. According to a Nexis Comprehensive Business Search, the City of New York Department of Finance Collection Division issued a warrant to OfficeTiger Inc. on June 30, 2008. The lien was for $990.87. The lien is still outstanding. [Nexis Comprehensive Business Search, OfficeTiger LLC Accessed 7/10/12] The New York City Department Of Finance Filed A $448 Judgment Against OfficeTiger Inc. According to a Nexis Comprehensive Business Search, the New York City Department of Finance filed a judgment against OfficeTiger Inc. for $448 on May 20, 2002. [Nexis Comprehensive Business Search, OfficeTiger LLC Accessed 7/10/12]

CLOUDBLUE TECHNOLOGIES
We have identified seven tax liens filed against CloudBlue Technologies. Six of the liens are for state taxes, while one was filed by the IRS for federal taxes. All but one of the liens have been paid in full. The following chart details the liens: Creditor Type Of Lien State Tax Warrant State Tax Warrant State Tax Warrant State Tax Warrant State Tax Warrant State Tax Warrant Federal Tax Lien Filing Number 07923019 Amount Date Filed Current Status Released 9/16/10 Released 5/18/10 Released 5/18/10 Released 6/10/09 Released 8/6/09 Outstanding

State of $10,985 5/25/10 Indiana State of 07508289 $2,958 12/21/09 Indiana State of 07490099 $3,121 12/9/09 Indiana State of New X0911362 $1,035 4/21/09 York State of New 10347459 $1,004 2/3/09 York State of New E-030797884$691 9/1/11 York W002-3 Internal BK1099PG40 $7,962 12/1/08 Released Revenue 2/23/09 Service [Nexis Comprehensive Business Search, CloudBlue Technologies, Accessed 7/12/12]

The State Of New York Filed A Tax Lien For $1,004 Against CloudBlue Technologies Inc. On February 4, 2009 And Released Them From It On August 6, 2009. According to the New York State Tax Warrant Notice System, the state of New York filed a tax lien for $1,004 against CloudBlue Technologies on February 3, 2009. The state released them from the lien on August 6, 2009. [New York Department of State, State Tax Warrant Notice System, Warrant ID#: E030409553-W001-7, Filed 8/7/09] The State Of New York Filed A Tax Lien For $691.17 Against CloudBlue Technologies Inc. On September 1, 2011. According to the New York State Tax Warrant Notice System, the state of New York filed a tax lien for $691.17 against CloudBlue Technologies on September 1, 2011. As of July 12, 2012, the lien is outstanding. [New York Department of State, State Tax Warrant Notice System, Warrant ID#: E-030797884-W002-3, 9/1/11]

The Internal Revenue Service Filed A Tax Lien For $7,962.22 Against Tiger Industries On December 1, 2008; Released Them From The Lien On February 11, 2009. According to the Certificate of Release of Federal Tax Lien, on December 1, 2008 the IRS filed a tax lien for $7,962.22 against Tiger Industries. On February 11, 2009, the IRS released Tiger Industries from the lien. [Department of the Treasury Internal Revenue Service, Certificate of Release of Federal Tax Lien, Fulton County, Ga., Book 1099, Page 41, Filed 2/23/09]