SOFTWARE & SERVICES 6 APRIL 2010

David Shore, CFA, MBA 416.860.6784

WEB 2.0 WEEKLY dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652

Strong Start To April in the Web 2.0 Space

Capital Markets Activity (M&A and Financing)
Strong start to April: Total transaction value in the Web 2.0 universe April-to-date is $119.1 million. The number of
financings stands at five averaging $12.6 million each. In comparison, total capital raised in March was $204.1 million,
averaging $5.4 million over 31 deals. February saw $204.1 million, averaging $8.2 million over 25 deals. January had
$219.1 million, averaging $9.1 million over 24 deals. December saw $450.4 million, averaging $12.9 million over 35
deals.

Financing Activity Last Twelve Months

500.0 16.0

450.0
13.5 14.0
12.9
12.6
400.0

12.0

350.0
10.2

10.0
300.0 9.1
8.9

8.2
(US$m)

(US$m)
250.0 8.0
6.8

200.0 5.8 5.8

5.6 5.4 6.0

4.7
150.0

4.0

100.0

2.0
50.0

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

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

Dec-09 includes $180m Zynga investment

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

Vidyo – developer of video conference solutions– raised $25 million in Series C funding.

MokaFive – maker of virtual desktop technology – raised $21 million in Series C funding.

Prosper.com – a peer-to-peer lending service – raised $14.6 million in its fourth financing round.

Bullish week for Web 2.0: Twenty-three companies in our universe had positive stock price performances (averaging
+4.6%) over the past week (for stocks with prices greater than $1), while 16 companies showed negative 1-week
returns (averaging -3.9%).

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
w w w . m a c k i e re s e a r c h . c o m

Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.218.6375 Regina 306.566.7550 St. Albert 780-460-6460
 Page 2

The Web 2.0 Universe

Ninety-six public Web 2.0 companies: Our Web 2.0 universe contains 96 companies, with a combined market cap of
approximately $73 billion (Figure 1). The median market cap for the group is $49 million, with average trailing revenue
of $418 million (median $15.2 million). The companies are also generally profitable with a median EBITDA margin of
11.4%. On a valuation basis, the overall average is 4.8x trailing revenue (median 1.9x) and 10.7x trailing EBITDA
(median 8.6x). Fourteen 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 LTM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Tic ker E xchange C urrenc y HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize N ew Media, Inc. 9/30/2009 AC LZ OT C B B US D U nited S ta tes 0. 55 15. 8 4. 1 (1. 5) -36. 5% 5.0x - 11
Actoz S oft C o. , L td. 9/30/2009 A052790 K OS E KRW S outh K orea 12250. 00 96. 2 123. 2 27.3 22.2% 0.4x 2. 0x NA
AQ Intera ctive, Inc. 12/31/2009 3838 TSE JP Y J apan 120300. 00 69. 3 NM NM NM 0.7x - NA
As knet AG 9/30/2009 XT R A:A5A XT R A E UR G ermany 3. 98 27. 0 8, 345.7 (107. 5) -1.3% 0.2x - NA
B eta wave C orporation 9/30/2009 B W AV OT C B B US D U nited S ta tes 0. 09 2.6 8. 4 (14.3) NM 0.0x - 48
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D U nited S ta tes 0. 04 2.2 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 U nited S ta tes 0. 01 0.9 0. 1 (1. 0) NM 30. 8x - 4
B right T hings plc 9/30/2009 AIM:B G T AIM GBP U nited K ingdom 0. 01 6.4 NM NM NM 29. 2x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D U nited S ta tes 0. 02 1.7 0. 0 (4. 6) NM - - 46
C DC C orp. 12/31/2009 C HIN. A Na s daqG S US D H ong K ong 3. 03 320. 5 320. 1 36.6 11.4% 1.0x 8. 4x NA
C hangyou.com Limited 12/31/2009 C Y OU Na s daqG S US D C hina 31. 58 1, 628.5 267. 6 167. 7 62.7% 5.2x 8. 4x 1, 308
C hines e G amer International 12/31/2009 G T S M:3083 GTS M TWD T a iwa n 345. 50 921. 6 0. 0 (0. 1) NM 12. 1x 22.4x NA
C ody V entures C orporation 6/30/2007 CVCP OT C P K US D U nited S ta tes 0. 00 0.1 0. 1 (0. 1) NM 1.6x - NA
C ornerW orld C orporation 1/31/2010 CWR L OT C B B US D U nited S ta tes 0. 02 1.9 11.3 NM NM 1.0x - 16
C yberplex Inc. 12/31/2009 T S X: C X TSX C AD C anada 0. 73 50. 2 2, 203.7 1, 193.8 54.2% 0.3x 2. 6x NA
DADA S pA 12/31/2009 C M: DA CM E UR Italy 5. 14 112. 2 15.2 NM NM 0.8x 6. 0x NA
DigitalP os t Interactive, Inc. 9/30/2009 DG L P OT C B B US D U nited S ta tes 0. 05 4.1 1. 2 (0. 9) -73. 8% 5.3x - 7
DigitalT own, Inc. 11/30/2009 DG T W OT C B B US D U nited S ta tes 1. 20 32. 9 0. 0 (1. 4) NM - - 3
Dolphin Digita l Media , Inc. 9/30/2009 DP DM OT C B B US D U nited S ta tes 0. 37 21. 1 0. 3 (4. 6) NM - - NA
DX N Holdings B hd 11/30/2009 DXN K LS E MY R Malays ia 0. 66 46. 5 34.2 3. 4 9. 9% 0.7x 3. 9x NA
E n2G o Internationa l, Inc. 11/30/2009 E TGI OT C B B US D U nited S ta tes 0. 20 4.8 NM (1. 9) NM - - NA
Neurotech P ha rmaceuticals C o. , Ltd. 9/30/2009 A041060 K OS E KRW S outh K orea 310. 00 21. 3 0. 2 0. 0 18.7% 3.4x 7. 2x NA
eW orldC ompanies , Inc. 6/30/2008 EWR C OT C P K US D U nited S ta tes 0. 00 0.5 0. 0 NM NM 15. 8x - NA
F luid Mus ic C anada , Inc. 9/30/2009 T S X: F MN TSX C AD U nited S ta tes 1. 66 104. 4 5. 6 (3. 0) -54. 0% 16. 6x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FR G XT R A E UR G ermany 19. 40 67. 0 7. 5 (4. 0) -54. 0% 7.4x - NA
G amania Digital E ntertainment C o. , L td. 12/31/2009 6180 GTS M TWD T a iwa n 48. 90 236. 3 0. 2 (0. 1) -47. 0% 1.3x 7. 4x NA
G ameO n C o Ltd. 12/31/2009 3812 TSE JP Y J apan 90900. 00 93. 1 54.7 9. 5 17.3% 0.3x 1. 4x NA
G eoS entric O yj 9/30/2009 G E O 1V HL S E E UR F inland 0. 03 36. 3 9, 255.7 2, 157.0 23.3% 9.2x - 94
G iant Interactive G roup, Inc. 12/31/2009 GA NY S E US D C hina 7. 67 1, 739.7 0. 5 (1. 9) NM - - NA
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T a iwa n 3. 14 171. 2 183. 6 NM NM 0.6x - 751
G ra vity C o., Ltd 9/30/2009 GR VY Na s daqG M US D S outh K orea 1. 93 53. 6 0. 2 NM NM - - 469
G ree, Inc. 12/31/2009 T S E :3632 TSE JP Y J apan 5580. 00 2, 674.0 631. 9 223. 8 35.4% 9.9x 16.9x NA
G ungHo Online E ntertainment, Inc. 9/30/2009 3765 OS E JP Y J apan 217500. 00 264. 4 255. 2 150. 1 58.8% 2.0x 8. 9x NA
Ha nbitS oft, Inc. 9/30/2009 A047080 K OS E KRW S outh K orea 4135. 00 80. 7 9. 6 2. 1 22.3% 1.1x - NA
IAC /InterActiveC orp. 12/31/2009 IAC I Na s daqG S US D U nited S ta tes 22. 67 2, 642.4 1, 375.8 81.7 5. 9% 0.8x 12.6x 3, 200
InternetArray, Inc. 12/31/2006 INAR OT C P K US D U nited S ta tes 0. 00 0.0 5. 9 (4. 0) -68. 6% 1.1x - NA
Is e B lu E quity C orp. 12/31/2006 IS B L OT C P K US D U nited S ta tes 0. 00 0.0 0. 0 NM NM 0.5x - NA
is eemedia Inc. 12/31/2009 IE E T S XV C AD C anada 0. 17 11. 5 2. 4 (3. 4) NM 4.5x - NA
J umbuck E ntertainment Limited 12/31/2009 AS X: J MB AS X AU D Aus tralia 0. 25 11. 2 15.4 6. 7 43.4% 0.4x 0. 9x 79
K ent Internationa l H oldings Inc. 12/31/2009 K NT H OT C P K US D U nited S ta tes 1. 80 6.4 0. 0 (0. 5) NM - - NA
K ings oft C orpora tion Limited 9/30/2009 3888 S E HK HK D C hina 6. 13 868. 0 143. 4 57.7 40.2% 5.7x 14.2x 2, 271
K iwibox.C om, Inc. 9/30/2009 K IW B OT C B B US D U nited S ta tes 0. 01 4.4 0. 1 (2. 3) NM - - 14
Lingo Media C orpora tion 9/30/2009 T S XV : LM T S XV C AD C anada 0. 67 8.3 1. 4 (2. 4) NM 5.6x - NA
LookS ma rt, L td. 12/31/2009 LOOK Na s daqG M US D U nited S ta tes 1. 03 17. 7 51.8 (2. 8) -5.4% - - NA
Mixi, Inc. 12/31/2009 2121 TSE JP Y J apan 630000. 00 1, 032.0 135. 7 41.1 30.3% 6.7x 22.1x NA
Mobile Data C orp. 1/31/2010 MB Y L OT C B B US D U nited S ta tes 0. 13 3.0 NM NM NM - - NA
Modern T imes G roup Mtg AB 12/31/2009 MT G B OM SEK S weden 431. 00 3, 955.9 1, 974.1 263. 2 13.3% 2.2x 16.7x NA
MOK O. mobi Limited 12/31/2009 MK B AS X AU D Aus tralia 0. 09 9.4 0. 4 (2. 7) NM 17. 1x - NA
Multiplied Media C orporation NA T S XV : MMC T S XV C AD C anada 0. 22 28. 3 NA NM NM - - NA
Myriad G roup AG 6/30/2009 MY R N SWX CHF S witzerland 4. 30 196. 6 63.0 3. 4 5. 4% 3.1x - 405
NE OW IZ G a mes C orpora tion 12/31/2008 A095660 K OS E KRW S outh K orea 32750. 00 615. 2 220. 5 59.2 26.8% 2.7x 10.2x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4. 45 302. 9 91.4 27.8 30.4% 1.7x 5. 5x 2, 426
Neteas e. com Inc. 12/31/2009 NT E S Na s daqG S US D C hina 35. 93 4, 653.7 550. 2 317. 3 57.7% - - NA
NeuLion Incorporated 12/31/2009 T S X: NL N TSX C AD C anada 0. 61 71. 0 28.1 (15.1) -53. 6% 2.1x - NA
NeXplore C orporation 9/30/2009 NXP C OT C P K US D U nited S ta tes 0. 48 26. 8 0. 5 NM NM - - NA
Ngi G roup Inc. 12/31/2009 2497 TSE JP Y J apan 59000. 00 77. 4 72.7 (1. 2) -1.7% 0.3x - NA
Northga te T echnologies L imited 12/31/2009 590057 BSE INR India 19. 80 15. 5 21.4 (59.9) NM 0.7x - 160
OAO R B C Informa tion S ys tems 12/31/2008 R BCI MIC E X R UB R us s ia 39. 10 180. 8 0. 0 (0. 3) NM 1.0x - 2, 523
Oriented Media G roup B erhad 9/30/2009 OME DIA K LS E MY R Malays ia 0. 23 9.5 NM NM NM 3.4x - NA
Open T ext C orp. 12/31/2009 OT E X Na s daqG S US D C anada 48. 04 2, 712.5 854. 6 230. 2 26.9% 3.2x 12.0x 3, 700
Openwave S ys tems Inc. 12/31/2009 OP W V Na s daqG S US D U nited S ta tes 2. 37 198. 5 192. 2 8. 6 4. 5% 0.5x 10.9x 590
T he P arent C ompa ny 8/2/2008 K IDS . Q OT C P K US D U nited S ta tes 0. 00 0.0 112. 0 (13.5) -12. 0% 0.2x - 347
P erfect W orld C o. , Ltd. 12/31/2009 PWR D Na s daqG S US D C hina 36. 67 1, 827.1 28.1 1. 3 4. 5% 0.1x 0. 2x NA
P N I Digital Media Inc. 12/31/2009 T S XV : P N T S XV C AD C anada 1. 70 57. 1 2, 136.9 1, 145.3 53.6% 2.0x 8. 3x NA
Quepas a C orp. 12/31/2009 QP S A OT C B B US D U nited S ta tes 3. 80 48. 4 0. 5 (9. 4) NM - - 71
R eal V alue E s tates , Inc. 11/30/2009 R V LU OT C B B US D Is ra el 1. 03 6.6 NM NM NM - - NA
S a hara Media H oldings , Inc. 9/30/2009 S H HD OT C B B US D U nited S ta tes 0. 25 7.8 0. 0 (4. 7) NM - - 15
S handa Interactive E nterta inment Ltd. 12/31/2009 S N DA Na s daqG S US D C hina 45. 86 3, 084.3 767. 5 333. 9 43.5% - - NA
S hutterfly, Inc. 12/31/2009 S FLY Na s daqG S US D U nited S ta tes 24. 07 623. 7 246. 4 32.6 13.2% 1.8x 13.6x 519
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KRW S outh K orea 12300. 00 459. 0 204. 9 13.3 6. 5% 2.2x 34.4x NA
S N AP Interactive, Inc. 9/30/2009 STVI OT C B B US D U nited S ta tes 0. 25 8.1 3. 4 0. 5 15.6% 1.9x 12.3x 11
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D U nited S ta tes 0. 00 0.0 0. 1 (0. 1) -60. 6% 4.6x - NA
S ocialwis e, Inc. 12/31/2009 S C LW OT C B B US D U nited S ta tes 0. 75 36. 3 0. 0 (4. 7) NM - - NA
S ohu. com Inc. 12/31/2009 S OH U Na s daqG S US D C hina 54. 07 2, 042.1 515. 2 222. 8 43.2% 3.0x 6. 9x 3, 997
S park N etworks , Inc. 12/31/2009 LOV AME X US D U nited S ta tes 3. 62 74. 5 45.4 9. 5 21.0% 1.5x 7. 2x NA
S pectrumDN A, Inc. 9/30/2009 S P XA OT C B B US D U nited S ta tes 0. 14 6.6 0. 1 (2. 5) NM 47. 0x - 7
S prylogics Interna tional C orp 10/31/2009 T S XV : S P Y T S XV C AD C anada 0. 03 0.8 0. 5 (0. 2) -50. 0% 1.7x - NA
T encent Holdings Ltd. 12/31/2009 700 S E HK HK D C hina 154. 10 36,047. 4 1, 821.7 932. 0 51.2% 21. 6x 42.3x NA
T he9 L imited 3/31/2009 NC T Y Na s daqG S US D C hina 7. 14 179. 3 248. 7 65.6 26.4% - - 1, 626
T heS treet. com, Inc. 12/31/2009 TS CM Na s daqG M US D U nited S ta tes 3. 68 116. 1 60.2 0. 3 0. 6% 0.9x - NA
T ree.C om, Inc. 12/31/2009 TR E E Na s daqG M US D U nited S ta tes 9. 18 101. 0 216. 8 9. 2 4. 2% 0.4x 9. 8x 700
Unila va C orporation 12/31/2008 UNL A OT C B B US D U nited S ta tes 0. 51 50. 9 5. 3 (1. 0) -18. 1% 9.7x - 39
Unis erve C ommunications C orp. 11/30/2009 T S XV : US S T S XV C AD C anada 0. 10 2.5 5. 2 (0. 9) -18. 1% 0.5x 8. 8x NA
United O nline, Inc. 12/31/2009 UNT D Na s daqG S US D U nited S ta tes 7. 70 654. 2 990. 1 204. 1 20.6% 0.9x 4. 3x 1, 699
UOMO Media, Inc 10/31/2009 UOMO OT C B B US D C anada 0. 03 2.6 1. 0 (0. 4) -42. 2% 3.2x - NA
V a lueC lick, Inc. 12/31/2009 V C LK Na s daqG S US D U nited S ta tes 10. 19 828. 7 422. 7 116. 1 27.5% 1.6x 5. 8x 1, 086
V elti P lc 6/30/2009 VE L AIM GBP U nited K ingdom 3. 27 187. 5 78.4 16.1 20.5% 2.2x 10.8x 450
V O IS , Inc. 12/31/2009 V OIS OT C B B US D U nited S ta tes 0. 01 10. 0 0. 0 (1. 4) NM - - 2
W ebzen Inc. 12/31/2009 K OS E :A069080 K OS E KRW S outh K orea 12050. 00 127. 2 24.8 (0. 8) -3.2% 2.6x - NA
W e-R -Y ou C orp. 9/30/2007 WER U OT C P K US D U nited S ta tes 0. 01 0.3 0. 6 (0. 2) -29. 1% 0.6x - NA
W izzard S oftware C orporation 9/30/2009 W ZE AME X US D U nited S ta tes 0. 26 17. 2 5. 2 (3. 9) -76. 4% 3.6x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D U nited S ta tes 0. 12 6.4 0. 1 (0. 6) NM - - 1
W ynds torm C orporation NA W Y ND OT C P K US D U nited S ta tes 0. 05 0.9 NA NM NM - - NA
XIN G AG 9/30/2009 O1B C XT R A E UR G ermany 28. 61 200. 2 57.5 15.5 27.0% 2.6x 9. 6x 266
Y D Online C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 5870. 00 78. 5 61.0 13.2 21.6% 1.4x 6. 5x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KRW S outh K orea 3080. 00 21. 9 12.7 1. 3 10.5% 1.6x 15.7x NA
High 36,047. 4 9, 255. 7 2, 157. 0 62.7% 47. 0x 42.3x 3, 997
Low 0.0 0. 0 -107. 5 -91. 9% 0.0x 0. 2x 1
Average 795.5 417.6 99.7 3.1% 4.8x 10.7x 741
Median 49. 3 15.2 -0. 1 11.4% 1.9x 8. 6x 110

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

Capital Markets Activity (M&A and Financing)

Strong start to April: Total transaction value in the Web 2.0 universe April-to-date is $119.1 million. The number of
financings stands at five averaging $12.6 million each. In comparison, total capital raised in March was $204.1 million,
averaging $5.4 million over 31 deals. February saw $204.1 million, averaging $8.2 million over 25 deals. January had
$219.1 million, averaging $9.1 million over 24 deals. December saw $450.4 million, averaging $12.9 million over 35 deals.

Financing Activity Last Twelve Months

500.0 16.0

450.0
13.5 14.0
12.9
12.6
400.0

12.0

350.0
10.2

10.0
300.0 9.1
8.9

8.2
(US$m)

(US$m)
250.0 8.0

6.8

200.0 5.8 5.8

5.6 5.4 6.0

4.7
150.0

4.0

100.0

2.0
50.0

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

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

Dec-09 includes $180m Zynga investment

Figure 2. Financings, Last Twelve Months

Source. Company reports






(US$m)

0.0
10.0
20.0
30.0
40.0
50.0
60.0
Qiyi
Aardvark
Glam Media
Saf-T-Net
Adenyo

Source. Company reports

LivingSocial
Ngmoco
Vidyo
MokaFive
C&C Media
Blue Kai
Red 5 Studios,
WebVisible
Ustream

23 and 24 (at end of note).

Multicast Media
Prosper.com
TidalTV
C$ cMoney
Rent the Runway
Avvasi
Flixster

Figure 3. Capital Market Activity, Last Three Months

InsideView
Quora
GyPSii
DataXu
Wix
BrightRoll
Yodle
Lucid Imagination
Hunch
Yammer
MOG
NetBase
Socialcast
Currensee
Plastic Jungle
TuneWiki
TripIt
SeaWell Networks
Vivox
Moonshoot
BrightEdge
Fynanaz
PowerReviews
Everyscape
Pursway
Tiny Speck
Videoplaza
Cozi
MetroGames
PeerPong
Posterous
Avatar Reality
Weedle
Effective Measure
Made.com
Ad Summos
Deal round-up for April: The large deal highlights for the month include:

Placecast
DubMeNow
Cognitive Match
Scrapblog
The Trade Desk
Vook
Formspring.me
Secret Builders
Buddy Media
Financing & M/A Summary - Last Three Months

Smartdate
Trada
Smilebox
Panvidea
Chomp
TellAPal
Goomzee
FreshPlanet
Bit.ly
KODA
AllGoob
Payvment
Reply.com
NearVerse
Moblyng
Vidyo – developer of video conference solutions– raised $25 million in Series C funding.

Second Porch
MokaFive – maker of virtual desktop technology – raised $21 million in Series C funding.

Cardagin Networks
Backupify
Jibe
Wistia
Ranker
CardStar
Burbn
Prosper.com – a peer-to-peer lending service – raised $14.6 million in its fourth financing round.

AppVee
AppsFire
Stylehive
Serious Business
Page 4

All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures

Apr-10
Mar-10
Feb-10
 Page 5

Advertising the top draw: In the past three months, Advertising-related companies have received the most attention
with 12 deals. The Video sector, with eight financings in the last quarter, has received the highest total deal value
(Figure 4).

Capital Market Activity by Sector - Last Three Months

160.0

140.0

120.0

100.0
(US$m)

80.0

60.0

40.0

20.0

138.6 94.9 81.5 78.5 52.5 52.5 51.6 39.6 28.4 25.5 21.0 18.8 16.5 15.5 15.0 12.5 12.5 11.5 10.0 8.0 7.7 6.8 6.6 6.1 5.0 4.4 3.4 2.2 0.8
0.0
Mobile Payment

Social Commerce
Internet Retail
Gaming

Online Dating
Online Calendar
Vertical Communities
Travel
Location-based SNS
Media

Mobile

Enterprise

Microblog

Online Learning
Financial Services

Music
Crowdsourced Content

Widget
Search

Mobile Ad

SMS/Voice

Blog

Infrastructure
Social Networks
Video

Advertising

Virtual World

Aggregation
Analytics

# companies
8 12 7 7 2 7 5 6 2 4 1 2 2 2 1 3 3 2 1 2 3 1 1 1 1 1 2 1 1

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

Source. Company reports
 Page 6

Capital Markets Activity (Price Performance)

Web 2.0 index continues to outpace Nasdaq recovery: Our Web 2.0 index (market-cap weighted) has positively
diverged from the broader tech market (represented by the Nasdaq Composite Index) since the start of the March 2009
market recovery (Figure 5).

Web 2.0 Index Price Performance

250

200

150

100

50

0
4/6/2009

4/20/2009

5/4/2009

5/18/2009

6/1/2009

6/15/2009

6/29/2009

7/13/2009

7/27/2009

8/10/2009

8/24/2009

9/7/2009

9/21/2009

10/5/2009

10/19/2009

11/2/2009

11/16/2009

11/30/2009

12/14/2009

12/28/2009

1/11/2010

1/25/2010

2/8/2010

2/22/2010

3/8/2010

3/22/2010
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Bullish week for Web 2.0: Twenty-three companies in our universe had positive stock price performances (averaging
+4.6%) over the past week (for stocks with prices greater than $1) (Figure 6), while 16 companies showed negative 1-
week returns (averaging -3.9%).

1 Week P rice P erformance

Northgate Technologies Limited 14.1%
G ravity Co., Ltd 11.4%
Ngi G roup Inc. 10.1%
OA O R B C Information S y s tems 9.6%
A Q Interactiv e, Inc. 7.4%
PNI Digital Media Inc. 6.2%
K ent International Holdings Inc. 5.9%
Changy ou.com Limited 5.7%
Quepas a Corp. 5.3%
TheS treet.com, Inc. 5.1%
DigitalTow n, Inc. 4.3%
Openw ave S y s tems Inc. 3.5%
V alueClick, Inc. 3.3%
S handa Interactive Entertainment Ltd. 2.8%
S hutterf ly , Inc. 2.6%
The9 Limited 2.0%
Y nk K orea Inc. 1.3%
Open Tex t Corp. 1.0%
LookS mart, Ltd. 1.0%
United Online, Inc. 0.8%
Fluid Mus ic Canada , Inc. 0.6%
S park Netw orks , Inc. 0.6%
Webz en Inc. 0.4%
Giant Interactive G roup, Inc. 0.0%
Tree.Com, Inc. -0.2%
S ohu.com Inc. -0.4%
CDC Corp. -0.7%
Perfect World Co., Ltd. -0.7%
IA C/InterA ctiveCorp. -0.9%
Mix i, Inc. -1.4%
G igaMedia Ltd. -1.6%
G ree, Inc. -1.8%
Y D Online Corp. -1.8%
Neteas e.com Inc. -2.2%
S K Communications Co., Ltd. -5.7%
HanbitS of t, Inc. -7.1%
G ameOn Co Ltd. -8.2%
NEOWIZ Games Corporation -10.0%
Neurotech Pharmaceuticals Co., Ltd. -10.1%
A ctoz S of t Co., Ltd. -10.3%
-0.15 -0.1 -0.05 0 0.05 0.1 0.15 0.2

Figure 6. 1-Week Price Performance

Source. Capital IQ

Public Company Industry News (Partnerships, Financial Results, New Products)
K ey Developments
C ompany
Tencent Holdings L td. (S E HK : 700)
L ookS mart, L td. (Nas daqG M: L OOK )
Quepas a C orp. (OTC B B : QP S A); Virtual Q uepa s a P artners with V irtua l G oods Ma rket
G oods Market, Inc .
L ookS mart, L td. (Nas daqG M: L OOK )
XING AG (XTR A: O1B C )
C yberplex Inc . (TS X: C X)
G eoS entric Oyj (HL S E : G E O1V)
Figure 7a. Key Developments
Source. Capital IQ
Headline
T encent Holdings L td S eeks Approval for a n
E quity B uyba ck
L ookS mart Announces Appointment of S cott LookS ma rt, L td. a nnounced the a ppointment of S cott Haus wirth as V ice P res ident, Dis tribution Network, effective Ma rch 23,
Haus wirth as New V ice P res ident, Dis tribution 2010. In this newly created role, Mr. Haus wirth will overs ee traffic acquis ition, tra ffic qua lity, and partner mana gement. Mr.
Network
to B ring P ortfolio of S ocia l G a mes to
Q uepa s a . C om Us ers
L ookS mart, L td. ha s filed a S helf R egis tra tion
in the a mount of $0. 51 million.
XING AG R eports E a rnings R es ults for 2009
C yberplex Inc. a nnounces an E quity B uyba ck
G eoS entric O yj R eports Audited G roup
E arnings R es ults for the F ourth Q ua rter and
F ull Y ea r to Dec. 2009
Page 8
Notes
T encent Holdings Ltd a nnounced tha t it would s eek a pprova l in the C ompa ny’s Annual G enera l Meeting on May 12, 2010,
to commence a s hare buyback progra m. Under the progra m, the C ompa ny will repurcha s e up to 10% of the a ggrega te
nomina l amount of the s ha re ca pital of the C ompany in is s ue as a t the date of pa s s ing of this R es olution. Any repurchas e
will be made out of funds which a re lega lly a va ila ble for the purpos e in a ccorda nce with the memora ndum of a s s ocia tion
and bye-laws of the C ompa ny a nd the C ompa nies Act. T he repurcha s es will be in a ccordance with la ws and requirements
and regulations of the S tock E xcha nge of Hong K ong L imited or on any other s tock excha nge on which the s hares of the
C ompa ny ma y be lis ted a nd recognized by the S ecurities a nd F utures C ommis s ion a nd the S tock E xcha nge of Hong K ong
Limited for this purpos e, s ubject to a nd in a ccordance with a ll a pplica ble laws a nd requirements of the S ecurities a nd
F utures C ommis s ion, T he S tock E xcha nge of Hong K ong L imited or a ny other s tock exchange as a mended from time to
time. T he s ha re buyba ck program s ha ll be va lid until the earlies t of the conclus ion of the next Annua l G enera l Meeting, or the expira
next Annua l G eneral Meeting of the C ompa ny is required by the B ye-la ws of C ompany to be held or the pas s ing of a n
ordina ry res olution by the s ha reholders of the C ompany in genera l meeting revoking or va rying the authority given to
the directors of the C ompany by this R es olution.
Ha us wirth will report directly to Dr. J ean-Y ves Dexmier, E xecutive C ha irma n and C hief E xecutive O fficer. He mos t recently
s erved a s V ice P res ident, B us ines s Development for travel s ta rt-up Zonder. P rior to tha t, he wa s S enior Director, B us ines s
Development at Y a hoo! , where he was res pons ible for multiple dis tribution partners hips , including a large pa rtners hip with a
cons ortium of news papers that now involves over 800 news papers a cting a s local ma rketing and s a les channels for Y ahoo!
products .
Quepa s a C orp. announced its partners hip with V irtual G oods Market, Inc. to bring s ocia l ga mes and applications including
V iximo's newes t relea s e 'S napMeUp' to the network's 12 million us ers . Levera ging Q uepa s a 's O penS ocia l fra mework, the
two compa nies pla n to provide a dditiona l s ocia l ga mes and applications a s they are added to the V iximo portfolio in a n
effort to keep us ers enga ged a nd help Q uepas a ma ximize revenue. 'S napMeUp' is the ultima te ma rria ge of online flirting
and s ocial ga ming. Q uepas a players ca n find fa me a nd fortune by buying, s elling a nd tra ding photos of their friends with
other people on the s ite. S ome will become tycoons by ma s tering the a rt of buy low/s ell high a nd others will find va lidation
as the hottes t pers on on the ma rket.
LookS ma rt, L td. has filed a S helf R egis tration in the a mount of $0. 51 million.
XING AG reported ea rnings res ults for 2009. F or the year, the compa ny increa s ed its revenues by 28% from E UR 35. 3
million in 2008 to E UR 45. 1 million in fis cal 2009. T he key growth driver here wa s a n increa s e in paying P remium cus tomers
by 25% to 687, 000 a gains t 550, 000 in 2008. T he company's E B IT DA in 2009 wa s E UR 11. 8 million, which was s imilar to
las t year's figure of E UR 12. 2 million, a nd equa tes to an E B IT DA ma rgin of 26% . T he nega tive net res ult of E UR 1. 7 million
is largely a ttributable to one-time impa irment los s es in the a mount of E UR 5. 4 million. T hes e los s es were due in particular
to write-downs for equity pa rticipa tions a nd acquis itions ma de by the E xecutive B oard ba s ed on the current ma rket
environment a nd X ING AG 's s trategic a lignment in fourth quarter.
T he B oa rd of Directors of C yberplex Inc. (T S X: C X) a uthorized a s ha re repurcha s e progra m on Ma rch 31, 2010. T he
compa ny ha s filled and has received the approva l from the T oronto S tock E xcha nge, for its notice of intention to commence
a norma l cours e is s uer bid. Under the bid, the compa ny will repurcha s e up to 5, 452, 073 of its common s ha res repres enting
approximately 10% of the public floa t a nd 7. 96% of the common s hares is s ued a nd outs ta nding. T he repurcha s es will be
ma de on the open ma rket by C yberplex through the fa cilities of the T S X in a ccorda nce with T S X requirements . T he prices
tha t C yberplex will pa y for any purchas ed common s hares will be the ma rket price of s uch s ha res on the T S X at the time of
acquis ition. T he C orpora tion may from time to time enter into a pre-defined plan with a regis tered inves tment dealer to a llow
for the repurcha s e of common s ha res at times when C yberplex ordinarily would not be a ctive in the market due to its own
interna l tra ding bla ckout periods , ins ider tra ding rules , or otherwis e. T he pla n will be adopted in a ccordance with a pplica ble
C a nadia n s ecurities la ws . C yberplex currently ha s 68, 471, 468 common s hares is s ued and outs ta nding, with a public float of 54, 520,
G eoS entric O yj reported a udited group ea rnings res ults for the fourth quarter a nd full year to Dec. 2009. F or the quarter, the
compa ny reported operating los s of €3, 697, 000, los s before ta xes of €3, 928, 000 and los s for the period of €3, 818, 000 on
net s ales of €475, 000 a gains t operating los s of €3, 255, 000, los s before taxes of €3, 260, 000 and los s for the period of
€3, 150, 000 on net s a les of €1, 164, 000 for the s ame period of la s t year.

K ey Developments
C ompany
W izzard S oftware C orporation
(AME X: WZE )
S ohu.c om Inc. (Nas daqG S : S OHU)
S NAP Interactive, Inc. (OTC B B : S TVI)
MOK O.mobi L imited (AS X: MK B )
Ac celerize New Media, Inc.
(OTC B B : AC L Z)
NeuL ion Inc orporated (TS X: NL N)
OAO R B C Information S ys tems
(MIC E X: R B C I)
E n2G o International, Inc .
(OTC B B : E TG I)
As knet AG (XTR A: A5A); K larna AB
W izzard S oftware C orporation
(AME X: WZE )
Openwave S ys tems Inc .
(Nas daqG S : OP WV)
L ookS mart, L td. (Nas daqG M: L OOK )
DigitalP os t Interactive, Inc.
(OTC B B : DG L P )
Figure 7b. Key Developments
Source. Capital IQ
Headline
W izza rd S oftwa re C orporation R eports
E arnings R es ults for the F ourth Q ua rter and
F ull Y ea r of 2009
S ohu. C om Inc. R eleas es New V ers ion of
S oG ou Input Method
S NAP Intera ctive, Inc. R eports R evenue
R es ults for the F ourth Q ua rter a nd E a rnings 2009. F or the qua rter, the compa ny reported revenue of $816, 391 a s compa red to $801, 120 in third qua rter of 2009,
R es ults for the F ull Y ea r E nded December 31, repres enting s equential revenue growth for third cons ecutive qua rter in 2009.
2009
MO K O . mobi L imited Appoints Ha ns De B ack
a s Non-E xecutive Director
Accelerize New Media , Inc. S igns F ive
Additiona l P erforma nce B a s ed Ma rketing
S oftwa re C ontra cts
Neulion Incorporated a nd O le Mis s Athletics
Announce Debut of a B ra nd New High
Definition L ive G a me S ervice for 2010
B as eba ll S eas on
O J S C R B C Information S ys tems a nd R B K
Inves tments E xecute L ega lly B inding
S ettlement Agreements with the Initia tive
G roup of R B C C reditors
E n2G o Internationa l, Inc. Announces
Ma na gement C ha nges
K larna AB a nd As knet AG S ign P arners hip
Agreement
W izza rd S oftwa re C orporation a nnounced it
expects to receive $2 million in funding.
O penwa ve S ys tems Inc. Appoints E ileen
Nels on as S enior V ice P res ident, Huma n
R es ources , E ffective April 1. 2010
L ookS mart, L td. Announces the Appointment
of V incent G ra nville, P h. D. , a s C hief S cientis t
Digita lP os t Interactive, Inc. R eports E arnings DigitalP os t Intera ctive, Inc. reported earnings res ults for the fourth qua rter and full yea r of 2009. F or the quarter, the
R es ults for the F ourth Q ua rter a nd F ull Y ear of compa ny reported tota l revenue of $303, 500 compared to $150, 700 for the s ame period a year a go.
2009
Page 9
Notes
W izzard S oftwa re C orpora tion reported earnings res ults for the fourth qua rter and full year of 2009. T he compa ny recording
revenues of $1, 469, 980 in the fourth qua rter of 2009, a 2% increas e from revenues of $1, 440, 719 in the fourth quarter of
2008. T he increa s e for the fourth qua rter of 2009 reflects an increas e in revenue in media bus ines s with the la unch of
podca s t App products a nd from an increa s e in s a les of lega cy s peech s oftwa re.
S ohu. com Inc. ha s relea s ed a new vers ion of S oG ou input method in a n a ttempt to penetra te into the res huffled online
s earch market in C hina . T he input method, powered by cloud computing technology a t the client s ide, ena bles us ers to get
an a cces s to the s ea rch s ervices provided by S ohu. com. T he s pa rkling cloud computing makes the new vers ion of S oG ou
more a s ea rch engine tha n a n input method. T he 5. 0 vers ion of S ogou will guide us ers to the S oG ou s ea rch engine directly
after a cha ra cter input content-rela ted s earch reques t is clicked. Online s ea rch s ervice will jump out of traditiona l s ea rch box
and get within the rea ch of netizens in any pos s ible means in the future.
S NAP Intera ctive, Inc. reported revenue res ults for the fourth quarter and ea rnings res ults full year ended December 31,
MO K O . mobi Limited a nnounced tha t it ha s invited Mr. Hans de B a ck, C E O of T ris creen Media G roup (T MG ) to join the
compa ny's board effective immedia tely a s non-executive director. Ha ns is C E O a nd co-founder of T ris creen Media G roup,
ma naging a number of compa nies providing interactive media s olutions . Ha ns previous ly worked a s a la wyer for s evera l
interna tiona l firms , s pecia lis ing in mergers and a cquis itions with a focus on telecom, media & enterta inment.
Accelerize New Media, Inc. announced that it s igned five a dditiona l s oftware contra cts . Its indus try-lea ding, pa tent-pending,
S oftwa re-as -a -S ervice lea d mana gement and affiliate pla tforms , has been des igned for us e by Internet lea d-genera tion
firms , online publis hers , a dvertis ing a gencies and corpora tions worldwide. Accelerize's pa tent-pending lea d mana gement
s oftwa re ha s a unique methodology that allows for rea l-time verifica tion, s coring, routing a nd delivery of lea ds in order to
increa s e revenues a nd optimize tra ffic between online publis hers a nd lea d buyers . S ta te-of-the-a rt fraud ma na gement tools ,
coupled with s ea mles s integration of s ervices , a llows for heightened efficiency, a nalytica l capa bilities and a n increa s ed
return on inves tment. C urrent products include lead genera tion a nd a ffilia te marketing S oftware-a s -a-S ervice a pplications .
NeuLion Incorporated a nd O le Mis s Athletics announced the debut of a bra nd new high definition live ga me s ervice for the
2010 ba s eball s ea s on. As pa rt of O le Mis s ' s ubs cription video s ervice, R ebel V is ion, the O le Mis s HD B a s eba ll
G a meC enter gives O le Mis s fa ns the ability to wa tch live ba s eball games online. T he video s trea m features a S outhea s tern
C onference-bes t dis play, ca pa ble of achieving brillia nt HD a t 720p res olution. O leMis s S ports . com repres ents the firs t officia l
athletic s ite from NeuL ion's nea rly 200 collegia te partner s ites to offer live HD s treaming. T he HD video s ervice fea tures
ada ptive s trea ming capa bilities that a llow the picture quality to conform to the viewer's ba ndwidth a nd a ccommoda te
different internet s ervice provider s peeds . NeuLion s upports advertis ing in the video player, a polling tool where fa ns can
vote, full ga me s chedules /a rchives , s ta ts and, mos t importa ntly, live a ction in ra zor-s ha rp HD quality. T he s ervice is
ava ila ble to fa ns through the res t of the bas eba ll s ea s on for all home games tha t a re not televis ed. O le Mis s fa ns ca n
acces s the live ga me HD player by clicking on the W a tch HD
B a s eball B anner from the O le Mis s homepa ge.
OJ S C R B C Informa tion S ys tems a nd R B K Inves tments (C yprus ) L td. ha ve executed lega lly binding s ettlement a greements
with the initia tive group of R B C creditors compris ing O J S C Alfa -B a nk, O J S C MDM-B a nk, Deuts che B ank AG , C LN
R ecovery L imited and C J S C G a zenergopromba nk. T he Agreements are the key lega l documenta tion in the R B C debt
res tructuring, providing for a trans pa rent mechanis m of dis cha rging exis ting R B C debt obligations via the is s ue of new
ins truments a nd cas h cons idera tion in a ccorda nce with the debt res tructuring terms a greed by O NE XIM G roup a nd R B C
ma nagement with the creditors in S eptember 2009. T hes e new ins truments will include loa n pa rticipa tion notes , ruble-
denominated bonds with pa ra meters identica l to L P Ns (for thos e creditors holding R B C debt in the a mount of les s than
$200, 000, or creditors fa cing regulatory res trictions in terms of inves tments in foreign s ecurities ), a s well a s cas h s ettled
options in res pect of R B C s ha res , thereby a llowing the creditors to pa rticipa te in a ny future equity ups ide of the R B C G roup.
E ffective Ma rch 26, 2010, P a ul F is hkin res igned a s P res ident, C hief F ina ncia l O fficer and C ha irma n of the B oa rd of
Directors of E n2G o Interna tional, Inc. Mr. F is hkin will continue to s erve a s a member of the B oard of Directors . E ffective
March 27, 2010, Mr. R obert R os ner wa s appointed to s erve a s acting interim P res ident, C hief E xecutive O fficer a nd C hief
F ina ncia l O fficer. R obert R os ner, 45, ha s s erved as the C ha irma n a nd C hief E xecutive Officer of W a ta ire Interna tiona l, Inc.
s ince Augus t 2005, a nd wa s rea ppointed a s P res ident in J a nua ry 2008. F ormerly he wa s P res ident from Augus t 2005 to
April 2007.
As knet AG ha s s igned a pa rtners hip a greement with K la rna AB . K larna is the perfect pa rtner for a s knet and s upports its
philos ophy of offering end cus tomers in its e-S hops us er-friendly a nd s ecure payment methods that a re in line with the
requirements of the local ma rket.
W izzard S oftwa re C orpora tion (AME X: W ZE ) a nnounced a regis tered direct offering of 8, 000, 000 common s ha res at a price
of $0. 25 per s ha re for gros s proceeds of $2, 000, 000 on April 1, 2010. T he inves tors will a ls o receive wa rra nts to purcha s e
approximately 5, 000, 000 common s hares a t a n exercis e price of $0. 35 per s hare. T he wa rra nts s ha ll be exercis a ble at any
time on or a fter 181 da ys following the is s ua nce da te and on or prior to the five yea r a nnivers ary of s uch da te. T he
tra ns a ction will s ee pa rticipation from five ins titutiona l inves tors . T he compa ny will rais e net proceeds of $1, 975, 000 in this
tra ns a ction. T he tra ns a ction is expected to clos e on or before April 7, 2010.
Openwave S ys tems Inc. announced the appointment of E ileen Nels on a s s enior vice pres ident, huma n res ources , effective
April 1, 2010. S he brings more tha n 28 yea rs of experience in a ll as pects of HR including s ta ffing, tra ining, global cultural
development, and leaders hip bes t-pra ctices . Nels on will report directly to its C E O , K en Denma n. Mos t recently Nels on was
s enior vice pres ident of huma n res ources for 3C om where s he led a global HR team.
LookS ma rt, L td. a nnounced the a ppointment of V incent G ranville, P h. D. , as C hief S cientis t, effective April 5, 2010. In this
newly created role, Dr. G ra nville will lea d L ookS ma rt's internet tra ffic optimization initia tive, with the goa l of increa s ing the
overa ll performa nce of the Ad Network for the benefit of both its publis her and a dvertis er ba s es . Dr. G ra nville will report
directly to Dr. J ea n-Y ves Dexmier, E xecutive C ha irma n a nd C hief E xecutive O fficer. Dr. G ra nville is the founder of
Ana lyticB ridge, the la rges t ana lytic s ocia l network, a nd ha s s erved a s P rincipa l s ince F ebrua ry, 2008.
 Page 10

Valuation
Gaming companies lead market-cap charts: Twelve companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Sixty-one of the 96 companies have market caps under US$100 million, with 40 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$36.0 billion.

Market C ap ($US mm)

Tenc ent Holdings Ltd. 36047.4
Neteas e. com Inc . 4653. 7
Modern Times G roup Mtg A B 3955. 9
S handa Interac tiv e Entertainment Ltd. 3084. 3
Open Tex t Corp. 2712. 5
G ree, Inc . 2674. 0
IA C/InterA c tiv eCorp. 2642. 4
S ohu. com Inc . 2042. 1
Perf ec t World Co. , Ltd. 1827. 1
G iant Interac tiv e G roup, Inc . 1739. 7
Changyou.c om Limited 1628. 5
Mix i, Inc . 1032. 0
Chines e G amer International 921. 6
K ings of t Corporation Limited 868. 0
V alueClic k, Inc . 828. 7
United Online, Inc . 654. 2
S hutterf ly, Inc . 623. 7
NEOWIZ G ames Corporation 615. 2
S K Communications Co. , Ltd. 459. 0
CDC Corp. 320. 5
NetDragon WebS of t, Inc . 302. 9
G ungHo Online Entertainment, Inc . 264. 4
G amania Digital Entertainment Co. , 236. 3
XING A G 200. 2
Openw ave S ys tems Inc . 198. 5
My riad G roup A G 196. 6
V elti Plc 187. 5
OA O R B C Inf ormation S y s tems 180. 8
The9 Limited 179. 3
G igaMedia Ltd. 171. 2
Webz en Inc . 127. 2
TheS treet. com, Inc . 116. 1
DA DA S pA 112. 2
Fluid Mus ic Canada, Inc . 104. 4
Tree. Com, Inc . 101. 0
A c toz S of t Co. , Ltd. 96. 2
G ameOn Co Ltd. 93. 1
HanbitS of t, Inc . 80. 7
Y D Online Corp. 78. 5
Ngi G roup Inc . 77. 4
S park Netw orks , Inc . 74. 5
NeuL ion Inc orporated 71. 0
A Q Interac tiv e, Inc . 69. 3
Frogs ter Interac tive Pic tures A G 67. 0
PNI Digital Media Inc . 57. 1
G rav ity Co. , L td 53. 6
Unilav a Corporation 50. 9
Cyberplex Inc . 50. 2
Quepas a Corp. 48. 4
DXN Holdings B hd 46. 5
S ocialw is e, Inc . 36. 3
G eoS entric Oy j 36. 3
DigitalTow n, Inc . 32. 9
Multiplied Media Corporation 28. 3
A s knet A G 27. 0
NeXplore Corporation 26. 8
Y nk K orea Inc . 21. 9
Neurotech Pharmac euticals Co. , Ltd. 21. 3
Dolphin Digital Media, Inc . 21. 1
L ookS mart, Ltd. 17. 7
Wiz z ard S of tw are Corporation 17. 2
A c celeriz e New Media, Inc . 15. 8
Northgate Tec hnologies Limited 15. 5
is eemedia Inc . 11. 5
J umbuck Entertainment Limited 11. 2
V OIS , Inc . 10. 0
Oriented Media G roup B erhad 9. 5
MOK O. mobi Limited 9. 4
L ingo Media Corporation 8. 3
S NA P Interac tiv e, Inc . 8. 1
S ahara Media Holdings , Inc . 7. 8
S pec trumDNA , Inc . 6. 6
R eal V alue Es tates , Inc . 6. 6
Worlds . com Inc . 6. 4
B right Things plc 6. 4
K ent International Holdings Inc . 6. 4
En2G o International, Inc . 4. 8
K iw ibox . Com, Inc . 4. 4
DigitalPos t Interac tiv e, Inc . 4. 1
Mobile Data Corp. 3. 0
B etaw av e Corporation 2. 6
UOMO Media, Inc 2. 6
Unis erve Communic ations Corp. 2. 5
B ey ond Commerc e, Inc . 2. 2
CornerWorld Corporation 1. 9
B roadWebA s ia Inc . 1. 7
B igs tring Corp. 0. 9
Wynds torm Corporation 0. 9
S pry logic s International Corp 0. 8
eWorldCompanies , Inc . 0. 5
We-R -Y ou Corp. 0. 3
Cody V entures Corporation 0. 1
The Parent Company 0. 0
Is e B lu Equity Corp. 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
 0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0
50. 0
(x)
B etawave C orporation
P erfec t World C o. , L td.

# Companies
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
As k net AG
T he P arent C ompany

Source. Capital IQ
Source. Capital IQ
AIM C y berplex Inc .

15.7
OTCBB Ngi G roup Inc .

10.5
G ameO n C o L td.

2 21 3
SEHK

9.7
J umbuck E ntertainment Limited
HLSE T ree.C om, Inc.

9.2
Ac toz S oft C o., L td.

Figure 9. TEV/Revenue Ranking

1 2
ASX U nis erve C ommunic ations C orp.

8.7
Is e B lu E quity C orp.

2
GTSM

6.7
O penwave S ys tems Inc .
TSX We-R -Y ou C orp.

6.3
G igaMedia L td.

3 2
XTRA Northgate T ec hnologies Limited
TSE AQ Interac tive, Inc .
DX N Holdings B hd
OTCPK IAC /InterAc tiveC orp.
DADA S pA

5 10 1
SWX
T heS treet. c om, Inc .
TSXV

0.0 0.10.20.20.30.3 0.30.40.40.4 0.50.50.50.60.6 0.70.70.70.80.80.90.9

U nited O nline, Inc .

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

C DC C orp.

6 2
AMEX

3.8 3.6 3.5 3.1 2.9 2.5

C ornerWorld C orporation

1
OM O AO R B C Information S ys tems
B ey ond C ommerc e, Inc.
KOSE HanbitS oft, Inc .

6 2
KLSE InternetArray , Inc .
G amania Digital E ntertainment C o. , L td.
OSE Y D O nline C orp.

Average TEV/LTM Revenue - By Exchange

NasdaqGS S park Network s , Inc .

2.2 2.1 2.1 2.0 1.7

V alueC lic k , Inc .

1 14 1
MICEX C ody V entures C orporation
Y nk K orea Inc.

1
CM

1.0 0.8
S pry logic s International C orp
BSE NetDragon WebS oft, Inc .

1.0 1.0 1.0 1.0 1.1 1.1 1.3 1.4 1.5 1.6 1.6 1.6 1.7 1.7 1.8
S hutterfly , Inc .

1 4
NasdaqGM

0.7 0.6
S NAP Interac tive, Inc .
G ungHo O nline E ntertainment, Inc .
P NI Digital Media Inc .
NeuL ion Incorporated
V elti P lc
T E V/L T M R evenue (x)

companies are Canadian (average 2.6x revenue vs. 2.9x last week).
Modern T imes G roup Mtg AB
(x) S K C ommunic ations C o. , L td.
Webz en Inc .
X ING AG

0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0

# Companies
NE O WIZ G ames C orporation
1.9 2.02.0 2.12.22.22.2 2.62.6 2.7

United S ohu. c om Inc .

2
My riad G roup AG

15.7
Kingdom
U O MO Media, Inc

1
Finland
multiples greater than 50x. Twenty-four companies have multiples under 1.5x.

9.2
O pen T ex t C orp.
O riented Media G roup B erhad

2
Australia

8.7
Neurotech P harmac eutic als C o. , L td.
3.0 3.13.23.23.43.4 3.6

Wiz z ard S oftware C orporation

China

10
is eemedia Inc .
United S oc ial Media V entures Inc .

40
6.2 5.9
States Ac c eleriz e New Media, Inc .
C hangy ou. c om Limited

3
Taiwan
4.54.6 5.0 5.2 5.3

DigitalP os t Interactive, Inc.

L ingo Media C orporation

2
Germany

4.7 3.8
5.6 5.7

K ings oft C orporation Limited

Mix i, Inc .

6
Japan

3.3
6.7 7.4

F rogs ter Interactive P ic tures AG

G eoS entric O y j

1
3.1
Switzerland U nilava C orporation
9.2 9.79.9

G ree, Inc .
Canada

10
C hines e G amer International
12.1

eWorldC ompanies , Inc .

1
Sweden F luid Mus ic C anada, Inc.
15.816.6

MO K O . mobi L imited
17.1

South

7
T encent Holdings L td.
21.6

Korea B right T hings plc

29.2

2
Malaysia B igs tring C orp.
30.8

2.6 2.2 2.1 2.1

Average TEV/LTM Revenue - By Country
S pectrumDNA, Inc .
47.0

1
Russia

1
Hong Kong

1.0 1.0

1
Italy
Page 11

TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed
Corp. (OTCBB:BSGC) at 30.8x, and Bright Things plc (AIM:BGT) at 29.2x. The median is 1.9x. Note that we exclude
TEV/Revenue (LTM) averages 4.9x: The overall average TEV/Revenue (LTM) multiple for our group is 4.9x (vs. 5.1x
last week) (Figure 9). Three companies trade above 25x revenue – SpectrumDNA, Inc. (OTCBB:SPXA) at 47.0x, Bigstring

United States has the most companies (40), trading at an average of 5.9x revenue (vs. 6.3x last week) (Figure 11). Ten
number of companies (21), trading at an average multiple of 10.5x (vs. 10.1x last week). On a geographic basis, the
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest

1
India

0.8 0.7
 Page 12

TEV/EBITDA (LTM) averages 10.7x: The average multiple for the 37 companies with positive EBITDA (and multiples
under 100x) is 10.7x LTM EBITDA (vs. 10.8x last week), led by Tencent Holdings Ltd. (SEHK:700) at 42.3x (Figure 12).
Twelve companies have EBITDA multiples under 7x. The median multiple is 8.8x (vs. 8.8x last week).

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

45. 0 42. 3

40. 0
34.4
35. 0

30. 0

25. 0 22. 1 22. 4

20. 0 16. 9
15.7 16. 7
15. 0 13. 6 14. 2
12. 0 12. 3 12. 6
10. 8 10. 9
9. 6 9. 8 10. 2
10. 0 8. 3 8. 4 8. 4 8. 8 8. 9
6. 5 6.9 7. 2 7. 2 7. 4
5. 5 5. 8 6. 0
3. 9 4. 3
5. 0 2. 6
1.4 2. 0
0. 2 0. 9
0. 0

NE O WIZ G ames C orporation

J umbuc k E ntertainment L imited

G amania Digital E ntertainment C o. , Ltd.

P NI Digital Media Inc .

G ungH o O nline E ntertainment, Inc .

C hines e G amer International

U nis erve C ommunic ations C orp.
DXN H oldings B hd

C hangy ou. c om L imited

G ameO n C o L td.

Neurotec h P harmac eutic als C o. , L td.

C DC C orp.

T ree. C om, Inc .

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

Modern T imes G roup Mtg AB
U nited O nline, Inc.

O pen T ex t C orp.

S NAP Interac tive, Inc.

K ings oft C orporation L imited

C y berplex Inc.

NetDragon WebS oft, Inc.

V alueC lic k , Inc.

Y D O nline C orp.

S ohu. com Inc.

S park Network s , Inc.

IAC /InterAc tiveC orp.

G ree, Inc.

Mix i, Inc.

T enc ent H oldings L td.

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

O penwave S y s tems Inc.

Y nk K orea Inc.
V elti P lc

S hutterfly , Inc.
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 (21), trading at an average multiple of 12.3x (vs. 13.6x last week). On a
geographic basis, the United States has the most companies (40), trading at an average of 9.6x EBITDA (vs. 9.9x last
week) (Figure 14). Ten companies are Canadian (average 7.9x EBITDA vs. 8.0x last week).

Average TEV/LTM EBITDA - By Country

Average TEV/LTM EBITDA - By Exchange
18.0
25.0 16.7
20.7 16.0
20.0 14.0
14.9
16.7 12.0
15.0 13.5 12.9
14.9 10.0 12.3
(x)

13.5 13.5 10.8

(x)

10.0 12.3 10.8 9.6

9.8 8.9 8.0 8.4 7.9
8.6 8.3
7.2 6.0 6.0
5.0 3.9 2.6 6.0
0.9 4.0 3.9
0.0 2.0
OTCBB
GTSM

NasdaqGM
SEHK

TSE

KOSE

OSE

NasdaqGS
OM

CM
AMEX

KLSE

TSX
AIM

TSXV

ASX

0.0 0.9
Kingdom
China

Japan

United

Hong

Canada

Malaysia
Italy
South
Korea

Kong
States
Taiwan

Australia
Sweden

United

# Companies 3 1 2 5 6 21 2 4 1 6 14 2 1 2 3 2
# Companies 1 3 7 10 6 2 40 1 10 1 2 2

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

Source. Capital IQ
 Page 13

P/E (LTM) averages 21.3x: The average multiple for the 32 companies with positive earnings (and multiples under 100x)
is 21.3x LTM EPS (vs. 21.1x last week), led by HanbitSoft, Inc. (KOSE:A047080) with a 75.6x multiple (Figure 15). Twelve
companies have P/E multiples under 10x. The median is 14.6x (vs. 14.9x last week).

P /E L T M (x)

80.0 75.6

70.0

58.6
60.0 55.2
52.3
50.0 45.0
41.2
40.0
33.4
29.1 29.2 30.1
30.0
23.4
21.6 22. 0
19.0
20.0 14.4 14.7 15.2
12.1 12.9
9.9 10.6 11.2
6.7 6.8 7.8
10.0 5.3
4.4
1.9 2.0 2. 1 2.5
0.0
0.0

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

G a mania Digita l E ntertainment C o., Ltd.

G ungHo O nline E ntertainment, Inc.

C hines e G amer International
DXN Holdings B hd

C hangy ou.c om Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.

C DC C orp.
G ravity C o., Ltd

S handa Interac tive E ntertainment Ltd.

Neteas e.com Inc.

United O nline, Inc.

O pen T ex t C orp.

S NAP Intera ctive, Inc.

K ings oft C orporation Limited
C y berplex Inc.

G igaMedia Ltd.

Y D O nline C orp.

V alueC lick , Inc.

NetDragon WebS oft, Inc.

S ohu.com Inc.

G ree, Inc.

T encent Holdings Ltd.

Mix i, Inc.
XING AG
P erfect World C o., Ltd.

HanbitS oft, Inc.

V elti P lc
DADA S pA

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 (21), trading at an average multiple of 45.0x (vs. 48.6x last week). On a geographic basis,
the United States has the most companies (40), trading at an average of 23.1x earnings (vs. 24.3x last week) (Figure 17).
Ten companies are Canadian (average 23.9x EPS vs. 22.8x last week).

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

45.0
60.0 38.7
52.3 40.0
50.0 35.0
40.0 45.0 30.0
39.5 29.6
34.2
25.0 23.9 23.1
(x)

30.0 29.6
(x)

26.3 22.0
22.0 20.0 21.6
20.0 19.8
12.7 12.1 15.0 13.8
6.7 5.3 4.4 12.1
10.0 2.1 10.0
0.0 5.3
0.0 5.0 4.4
OTCBB

GTSM

NasdaqGM
OSE

KOSE

TSE

SEHK

NasdaqGS

CM

TSX

KLSE

NYSE
AIM

ASX

0.0
Japan

Canada

United

Kingdom
Hong

China

Malaysia
Italy
South
Korea

Kong
States

Taiwan

Australia
United

# Companies 1 21 6 5 3 2 2 14 1 3 2 2 1 4
# Companies 6 7 10 40 2 1 3 10 1 2 2

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
NetDragon WebSoft, Inc. (SEHK:777) 15-Apr-10 9:00 p.m. EST Q4/09 617-597-5307 (passcode: 97511562)
IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Apr-10 11:00 a.m. EST Q1/10 http://www.iac.com/Investors
Tree.Com, Inc. (NasdaqGM:TREE) 30-Apr-10 11:00 a.m. EST Q1/10 866-564-7440

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 15.8 0.55 0. 0% -1.8% -15.4% -15.4% 175. 0% -31.3%
A ctoz S oft C o. , L td. KR W A052790 K OS E 96.2 12250.00 -10.3% -16.1% -31.0% -23.9% -14. 6% -66.0%
A Q Interactive, Inc. JPY 3838 TS E 69.3 120300.00 7. 4% -18.2% 91.0% 152.7% 170. 9% -27.7%
A s knet AG E UR XT R A :A5A XT R A 27.0 3.98 0. 0% 12.4% 31.4% 28.4% 55.5% -5.2%
B eta wave C orpora tion US D B W AV OT C B B 2.6 0.09 -5.3% -18.2% -35.7% 28.6% -33. 3% -52.6%
B eyond C ommerce, Inc. US D B Y OC OT C B B 2.2 0.04 19.4% 27.6% 32.1% -81.5% -96. 9% -98.0%
B igs tring C orp. US D BSGC OT C B B 0.9 0.01 -4.8% -37.3% -38.7% -63.7% -1.4% -75.8%
B right T hings plc GB P AIM:B G T A IM 6.4 0.01 2. 0% -23.5% 0.0% -5.5% -13. 3% -48.0%
B roadW ebA s ia Inc. US D BWBA OT C P K 1.7 0.02 -50.0% -50.0% -60.0% -91.3% -95. 6% -95.6%
C DC C orp. US D C H IN.A Nas da qG S 320.5 3.03 -0.7% 17.2% 19.3% 21.2% 150. 4% -22.7%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 628.5 31.58 5. 7% -2.5% -10.4% -6.5% 26.3% -34.7%
C hines e G a mer International TWD G T S M:3083 GTS M 921.6 345.50 2. 2% 12.7% -18.5% -26.5% 85.8% -33.4%
C ody V entures C orpora tion US D CVCP OT C P K 0.1 0.00 0. 0% 0.0% -25.0% 200.0% 900. 0% -72.7%
C ornerW orld C orpora tion US D CW R L OT C B B 1.9 0.02 0. 0% -50.0% -33.3% -66.7% -85. 7% -85.7%
C yberplex Inc. C AD T S X: C X TS X 50.2 0.73 -1.4% -18.9% -36.0% -41.1% -34. 8% -63.3%
DADA S pA E UR C M:DA CM 112.2 5.14 -1.6% 4.4% -13.0% -23.8% 14.2% -37.3%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 4.1 0.05 3. 4% -25.0% -8.2% -28.6% 200. 0% -54.5%
DigitalT own, Inc. US D DG T W OT C B B 32.9 1.20 4. 3% 20.0% 0.0% -40.3% -52. 0% -65.7%
Dolphin Digital Media, Inc. US D DP DM OT C B B 21.1 0.37 23.3% 23.3% 76.2% -2.6% -43. 1% -51.3%
DXN Holdings B hd MY R DXN K LS E 46.5 0.66 0. 0% -1.5% 13.8% 10.0% 106. 3% -12.0%
E n2G o International, Inc. US D E TGI OT C B B 4.8 0.20 -33.3% -66.7% -60.8% -67.2% -92. 0% -95.2%
Neurotech P ha rmaceutica ls C o., Ltd. KR W A041060 K OS E 21.3 310.00 -10.1% -15.1% -53.7% -56.9% -49. 2% -73.3%
eW orldC ompa nies , Inc. US D EWRC OT C P K 0.5 0.00 0. 0% 0.0% -66.7% -85.7% 0.0% -97.4%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 104.4 1.66 0. 6% -2.4% -2.4% 18.6% 403. 0% -22.8%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 67.0 19.40 -0.5% -3.5% 10.9% 8. 4% 176. 7% -9.7%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 236.3 48.90 -0.2% 0.6% -10.6% 2. 2% 39.7% -28.9%
G ameO n C o L td. JPY 3812 TS E 93.1 90900.00 -8.2% 33.3% 15.8% 4. 7% -1.2% -31.6%
G eoS entric Oyj E UR G E O1V H LS E 36.3 0.03 -40.0% -25.0% -25.0% -40.0% 0.0% -50.0%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 739.7 7.67 0. 0% 0.1% 5.2% 8. 9% 3.9% -19.8%
G igaMedia L td. US D G IG M Nas da qG S 171.2 3.14 -1.6% -2.2% -2.8% -34.4% -45. 5% -55.8%
G ra vity C o., Ltd US D GR VY Nas da qG M 53.6 1.93 11.4% 0.9% 16.8% 2. 0% 96.6% -26.7%
G ree, Inc. JPY T S E :3632 TS E 2, 674.0 5580.00 -1.8% -2.4% -0.2% 21.3% 93.8% -7.6%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 264.4 217500.00 1. 4% 3.9% -13.7% 0. 5% 73.7% -22.3%
H anbitS oft, Inc. KR W A047080 K OS E 80.7 4135.00 -7.1% 8.8% 8.4% -3.8% -11. 0% -37.7%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 642.4 22.67 -0.9% -4.3% 8.2% 17.2% 37.3% -7.4%
InternetArray, Inc. US D INAR OT C P K 0.0 0.00 -25.0% -50.0% -40.0% -86.4% -97. 0% -99.4%
Is e B lu E quity C orp. US D IS B L OT C P K 0.0 0.00 0. 0% 0.0% 0.0% 0. 0% 0.0% -90.0%
is eemedia Inc. C AD IE E T S XV 11.5 0.17 -2.9% -10.8% -21.4% 37.5% 50.0% -38.9%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 11.2 0.25 -7.4% -16.7% -19.4% -35.1% -45. 7% -50.0%
K ent International Holdings Inc. US D K NT H OT C P K 6.4 1.80 5. 9% 6.5% -0.6% -7.7% -26. 5% -10.0%
K ings oft C orpora tion L imited HK D 3888 S E HK 868.0 6.13 0. 5% -5.5% -4.5% -11.3% 72.7% -35.3%
K iwibox.C om, Inc. US D K IW B OT C B B 4.4 0.01 0. 0% -33.3% -52.4% 11.1% 0.0% -74.4%
L ingo Media C orpora tion C AD T S XV :LM T S XV 8.3 0.67 -4.3% -27.2% -39.1% -31.6% -43. 7% -57.6%
L ookS mart, L td. US D LO OK Nas da qG M 17.7 1.03 1. 0% 6.2% -7.2% -8.8% -7.2% -34.0%
Mixi, Inc. JPY 2121 TS E 1, 032.0 630000.00 -1.4% 11.9% -13.3% -1.3% 55.9% -27.2%
Mobile Data C orp. US D MB Y L OT C B B 3.0 0.13 -21.9% 4.2% 47.1% 4. 2% -51. 9% -68.8%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 955.9 431.00 1. 3% 5.7% 21.1% 48.6% 185. 4% -0.4%
MO K O .mobi L imited AU D MK B AS X 9.4 0.09 6. 2% -9.5% -42.7% 32.3% -12. 2% -57.0%
Multiplied Media C orpora tion C AD T S XV :MMC T S XV 28.3 0.22 -4.4% -20.4% NM NM NM -30.6%
Myriad G roup AG C HF MY R N S WX 196.6 4.30 -0.5% -7.5% -11.3% -6.1% 0.2% -30.5%
NE O W IZ G ames C orporation KR W A095660 K OS E 615.2 32750.00 -10.0% -1.8% -20.1% -18.1% 4.0% -27.1%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 302.9 4.45 2. 1% 1.1% 10.1% -11.7% 3.5% -37.8%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 653.7 35.93 -2.2% -8.3% -14.1% -19.1% 26.3% -25.9%
NeuLion Incorpora ted C AD T S X: NL N TS X 71.0 0.61 -1.6% 22.0% -12.9% -35.8% 13.0% -53.1%
NeXplore C orpora tion US D NXP C OT C P K 26.8 0.48 -4.0% -20.0% -12.7% -26.2% -26. 2% -48.9%
Ngi G roup Inc. JPY 2497 TS E 77.4 59000.00 10.1% 28.3% 149.8% 127.8% 108. 0% -4.8%
Northgate T echnologies Limited INR 590057 BSE 15.5 19.80 14.1% 0.5% -28.5% -49.4% -52. 1% -66.9%
O AO R B C Information S ys tems R UB R BCI MIC E X 180.8 39.10 9. 6% 6.3% 2697. 9% 2506.7% 9100.0% -3.2%
O riented Media G roup B erha d MY R OME DIA K LS E 9.5 0.23 15.0% 12.2% 91.7% 228.6% 21.1% 0.0%
O pen T ext C orp. US D OT E X Nas da qG S 2, 712.5 48.04 1. 0% -0.7% 17.3% 25.4% 37.3% -3.0%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 198.5 2.37 3. 5% -13.8% 1.3% -6.3% 85.2% -24.3%
T he P a rent C ompany US D K IDS . Q OT C P K 0.0 0.00 -50.0% -80.0% -71.4% -85.7% -88. 6% -93.9%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 827.1 36.67 -0.7% -4.6% -15.9% -18.8% 120. 9% -27.4%
P NI Digital Media Inc. C AD T S XV :P N T S XV 57.1 1.70 6. 2% -0.6% 4.9% -12.8% 7.6% -19.0%
Q uepa s a C orp. US D QP S A OT C B B 48.4 3.80 5. 3% -5.0% 66.7% 171.4% 304. 3% -9.5%
R ea l V alue E s tates , Inc. US D R V LU OT C B B 6.6 1.03 -6.4% -14.2% -6.4% NM NM -31.3%
S ahara Media H oldings , Inc. US D S HH D OT C B B 7.8 0.25 -16.7% -37.5% -55.4% -91.7% -91. 7% -92.3%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 084.3 45.86 2. 8% 18.3% -17.8% -6.4% -1.2% -29.4%
S hutterfly, Inc. US D S F LY Nas da qG S 623.7 24.07 2. 6% 12.1% 39.5% 47.2% 128. 6% -2.5%
S K C ommunications C o. , L td. KR W A066270 K OS E 459.0 12300.00 -5.7% -7.9% -24.5% 44.7% 21.2% -33.2%
S NA P Intera ctive, Inc. US D S TVI OT C B B 8.1 0.25 0. 0% 47.1% 66.7% 114.3% 0.0% -21.1%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.00 -7.5% -26.0% -7.5% -96.1% -99. 6% -99.6%
S ocialwis e, Inc. US D S CLW OT C B B 36.3 0.75 24.8% 21.8% 49.8% 22.8% 92.1% -26.6%
S ohu.com Inc. US D S O HU Nas da qG S 2, 042.1 54.07 -0.4% 4.1% -9.6% -20.2% 12.4% -25.2%
S pa rk Networks , Inc. US D LO V A ME X 74.5 3.62 0. 6% 7.4% 21.9% 53.4% 65.3% -0.1%
S pectrumDNA, Inc. US D S P XA OT C B B 6.6 0.14 22.7% 12.5% -25.0% -32.5% -10. 0% -70.0%
S prylogics Internationa l C orp C AD T S XV :S P Y T S XV 0.8 0.03 0. 0% -25.0% 200.0% 100.0% 50.0% -33.3%
T encent H oldings Ltd. HK D 700 S E HK 36,047. 4 154.10 -2.4% -2.4% -8.5% 25.4% 149. 6% -12.7%
T he9 L imited US D NC T Y Nas da qG S 179.3 7.14 2. 0% 1.7% -11.3% -7.5% -48. 7% -56.7%
T heS treet.com, Inc. US D TS CM Nas da qG M 116.1 3.68 5. 1% 4.5% 50.5% 24.7% 80.4% -3.2%
T ree.C om, Inc. US D TR E E Nas da qG M 101.0 9.18 -0.2% 8.8% 5.3% 19.5% 66.6% -29.8%
U nilava C orporation US D UNLA OT C B B 50.9 0.51 45.4% 49.7% 103.6% NM NM -21.7%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 2.5 0.10 0. 0% 5.3% 66.7% 150.0% 150. 0% -28.6%
U nited O nline, Inc. US D UNT D Nas da qG S 654.2 7.70 0. 8% 9.7% 3.1% -3.3% 44.5% -18.6%
U OMO Media, Inc US D UO MO OT C B B 2.6 0.03 7. 1% -24.8% -25.0% -76.4% -72. 7% -97.2%
V alueC lick, Inc. US D V CLK Nas da qG S 828.7 10.19 3. 3% 1.0% -3.6% -25.1% 1.2% -26.9%
V elti P lc GB P VEL A IM 187.5 3.27 -0.5% -0.7% 65.2% 98.2% 197. 8% -4.4%
V OIS , Inc. US D V O IS OT C B B 10.0 0.01 0. 0% 14.9% 25.0% 100.0% 233. 3% -56.5%
W ebzen Inc. KR W K O S E : A069080 K OS E 127.2 12050.00 0. 4% 0.4% 4.3% 17.6% 6.6% -41.8%
W e-R -Y ou C orp. US D WE RU OT C P K 0.3 0.01 0. 0% 0.0% 225.0% -78.3% -78. 3% -89.2%
W izzard S oftwa re C orporation US D W ZE A ME X 17.2 0.26 -22.3% -13.4% -31.6% -48.0% -63. 9% -66.0%
W orlds .com Inc. US D W DDD OT C B B 6.4 0.12 0. 0% -55.6% 33.3% 33.3% -40. 0% -55.6%
W ynds torm C orpora tion US D W Y ND OT C P K 0.9 0.05 0. 0% -50.0% 25.0% -50.0% -58. 3% -90.2%
XING A G E UR O1B C XT R A 200.2 28.61 -4.9% 4.1% -7.1% -19.5% -2.3% -24.7%
Y D Online C orp. KR W A052770 K OS E 78.5 5870.00 -1.8% -6.1% -21.3% -27.4% -39. 5% -52.7%
Y nk K orea Inc. KR W A023770 K OS E 21.9 3080.00 1. 3% 11.6% -5.2% -18.5% -39. 1% -64.6%
H igh 45.4% 49.7% 2697. 9% 2506.7% 9100.0% 0.0%
L ow -50.0% -80.0% -71.4% -96.1% -99. 6% -99.6%
Average 839.3 -0.8% -4.2% 34.0% 33.1% 150.2% -40.6%
Media n 0. 0% -0.7% -6.8% -5.8% 10.0% -31.6%

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 15.8 5.0x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 96.2 0.4x - 2. 0x - 12.9x - 1.4x
AQ Intera ctive, Inc. G aming J apan TS E 3838 69.3 0.7x - - - - - 1.3x
As knet A G G aming G erma ny XT R A XT R A :A5A 27.0 0.2x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.6 0.0x - - - - - 1.8x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 2.2 1.0x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 0.9 30.8x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 6.4 29.2x - - - - - 7.9x
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 1.7 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 320.5 1.0x - 8. 4x - 21.6x - 49.4x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,628.5 5.2x - 8. 4x - 11.2x - 7.5x
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 921.6 12.1x - 22.4x - 29.2x - 11.6x
C ody V entures C orporation G aming U nited S ta tes OTCP K CVCP 0.1 1.6x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 1.9 1.0x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 50.2 0.3x - 2. 6x - 6.7x - 1.6x
DA DA S pA S ocial Networking Italy CM C M:DA 112.2 0.8x - 6. 0x - 12.1x - 1.1x
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 4.1 5.3x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 32.9 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 21.1 - - - - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 46.5 0.7x - 3. 9x - 5.3x - 0.8x
E n2G o International, Inc. S ocial Networking U nited S ta tes OTCB B E TGI 4.8 - - - - - - -
Neurotech P ha rmaceuticals C o., L td. G aming S outh K orea K OS E A041060 21.3 3.4x - 7. 2x - - - 0.5x
eW orldC ompanies , Inc. G aming U nited S ta tes OTCP K E WRC 0.5 15.8x - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 104.4 16.6x - - - - - 7.2x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 67.0 7.4x - - - - - 8.9x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 236.3 1.3x - 7. 4x - 23.4x - 2.9x
G ameO n C o Ltd. G aming J apan TS E 3812 93.1 0.3x - 1. 4x - 10.6x - 1.2x
G eoS entric Oyj Mobile F inland H LS E G E O1V 36.3 9.2x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,739.7 - - - - 2.1x - 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 171.2 0.6x - - - 6.8x - 1.6x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 53.6 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,674.0 9.9x - 16.9x - 33.4x - 17.4x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 264.4 2.0x - 8. 9x - 52.3x - 8.6x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 80.7 1.1x - - - 75.6x - 2.1x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,642.4 0.8x - 12.6x - - - 1.5x
InternetA rray, Inc. Media U nited S ta tes OTCP K INA R 0.0 1.1x - - - - - -
Is e B lu E quity C orp. Media U nited S ta tes OTCP K IS B L 0.0 0.5x - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 11.5 4.5x - - - - - 7.7x
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 11.2 0.4x - 0. 9x - 4.4x - 0.9x
K ent Internationa l Holdings Inc. S ocial Networking U nited S ta tes OTCP K K NT H 6.4 - - - - - - 0.6x
K ings oft C orporation Limited G aming C hina S E HK 3888 868.0 5.7x - 14.2x - 19.0x - 4.6x
K iwibox.C om, Inc. S ocial Networking U nited S ta tes OTCB B K IW B 4.4 - - - - - - -
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 8.3 5.6x - - - - - -
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 17.7 - - - - - - 0.7x
Mixi, Inc. S ocial Networking J apan TS E 2121 1,032.0 6.7x - 22.1x - 58.6x - 6.8x
Mobile Da ta C orp. S ocial Networking U nited S ta tes OTCB B MB Y L 3.0 - - - - - - -
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,955.9 2.2x - 16.7x - - - -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 9.4 17.1x - - - - - 4.0x
Multiplied Media C orpora tion Mobile C ana da T S XV T S XV :MMC 28.3 - - - - - - -
Myriad G roup AG Mobile S witzerla nd SWX MY R N 196.6 3.1x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 615.2 2.7x - 10.2x - 30.1x - 15.2x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 302.9 1.7x - 5. 5x - 14.7x - 1.6x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,653.7 - - - - 2.5x - 0.6x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 71.0 2.1x - - - - - 19.6x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 26.8 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 77.4 0.3x - - - - - 1.5x
Northgate T echnologies Limited Direct Marketing India BS E 590057 15.5 0.7x - - - - - -
O AO R B C Information S ys tems Media R us s ia MIC E X R BCI 180.8 1.0x - - - - - -
O riented Media G roup B erhad Media Mala ys ia K LS E O ME DIA 9.5 3.4x - - - - - 4.0x
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,712.5 3.2x - 12.0x - 41.2x - -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 198.5 0.5x - 10.9x - - - 2.7x
T he P a rent C ompany Mobile U nited S ta tes OTCP K K IDS .Q 0.0 0.2x - - - - - -
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,827.1 0.1x - 0. 2x - 1.9x - 0.9x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 57.1 2.0x - 8. 3x - - - 8.5x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 48.4 - - - - - - -
R eal V a lue E s ta tes , Inc. Media Is ra el OTCB B R V LU 6.6 - - - - - - -
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 3,084.3 - - - - 2.0x - 0.3x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 623.7 1.8x - 13.6x - - - 3.1x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 459.0 2.2x - 34.4x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 8.1 1.9x - 12.3x - 45.0x - 4.4x
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 36.3 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,042.1 3.0x - 6. 9x - 15.2x - 3.7x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 74.5 1.5x - 7. 2x - - - 12.5x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 6.6 47.0x - - - - - -
S prylogics International C orp Media C ana da T S XV T S XV :S P Y 0.8 1.7x - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 36,047.4 21.6x - 42.3x - 55.2x - 23.5x
T he9 L imited G aming C hina N as da qG S NC T Y 179.3 - - - - - - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 116.1 0.9x - - - - - 1.6x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 101.0 0.4x - 9. 8x - - - 2.0x
Unilava C orporation Media U nited S ta tes OTCB B U NLA 50.9 9.7x - - - - - 2.1x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 2.5 0.5x - 8. 8x - - - -
United Online, Inc. Media U nited S ta tes N as da qG S U NT D 654.2 0.9x - 4. 3x - 9.9x - -
UO MO Media, Inc Media C ana da OTCB B UO MO 2.6 3.2x - - - - - -
V a lueC lick, Inc. Media U nited S ta tes N as da qG S V CLK 828.7 1.6x - 5. 8x - 14.4x - 4.1x
V elti P lc Media U nited K ingdom AIM VEL 187.5 2.2x - 10.8x - 22.0x - 6.2x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 10.0 - - - - - - -
W ebzen Inc. G aming S outh K orea K OS E K OS E :A069080 127.2 2.6x - - - - - 1.2x
W e-R -Y ou C orp. G aming U nited S ta tes OTCP K WERU 0.3 0.6x - - - - - -
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 17.2 3.6x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 6.4 - - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 0.9 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 200.2 2.6x - 9. 6x - 29.1x - 6.2x
Y D Online C orp. G aming S outh K orea K OS E A052770 78.5 1.4x - 6. 5x - 7.8x - 2.3x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 21.9 1.6x - 15.7x - - - 0.7x
High 36,047.4 47.0x - 42.3x - 75.6x - 49.4x
Low 0.0 0.0x - 0. 2x - 0.0x - 0.0x
Average 839.3 4.9x - 10.7x - 21.3x - 5.7x
Median 50.9 1.9x - 8. 6x - 14.6x - 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

Financing - L as t Three Months (US $ m)

F in. 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
F eb-10 Ngmoc o US A 25. 0 25. 0
B lue K ai US A 21. 0 21. 0
WebVis ible US A 20. 0 20. 0
TidalTV US A 16. 0 16. 0
Avvas i C anada 14. 1 14. 1
F lixs ter US A 12. 5 12. 5
Yodle US A 10.0 10. 0
B rightR oll US A 10. 0 10. 0
Yammer US A 10. 0 10. 0
C urrens ee US A 8. 0 8.0
TuneWiki US A 7. 0 7.0
Vivox US A 6. 8 6.8
Moons hoot US A 6. 6 6.6
F ynanaz US A 6. 5 6.5
E verys cape US A 6. 0 6.0
P urs way Is ra el 6. 0 6.0
E ffective Meas ure Aus tralia 4. 0 4.0
C ognitive Matc h UK 2. 5 2.5
Vook US A 2.5 2.5
S crapblog US A 2. 5 2.5
S milebox US A 2. 0 2.0
P ros per.com US A 2.0 2.0
K ODA US A 1.5 1.5
B ac kupify US A 0.9 0.9
R anker US A 0.8 0.8
Apps F ire F ra nce
F eb-10 Total 5.7 2.0 23.1 59.6 103.8 10.0 204.1

Mar-10 L ivingS ocial US A 25. 0 25. 0

Ins ideView US A 11. 5 11. 5
Quora US A 11. 0 11. 0
DataXu US A 11. 0 11. 0
Wix US A 10. 0 10. 0
L uc id Imagination US A 10. 0 10. 0
Hunc h US A 10. 0 10. 0
NetB as e US A 9. 0 9.0
S ocialcas t US A 8. 0 8.0
P las tic J ungle US A 7. 4 7.4
TripIt US A 7. 0 7.0
S eaWell Networks C anada 6. 8 6.8
B rightE dge US A 6. 5 6.5
MetroG ames Argentina 5. 0 5.0
P os terous US A 4. 4 4.4
Made.com UK 3. 8 3.8
P lacec as t US A 3. 0 3.0
Trada US A 2. 2 2.2
S martdate F ra nce 2.2 2.2
P anvidea US A 2. 0 2.0
C homp US A 2. 0 2.0
G oomzee US A 1. 5 1.5
B it.ly US A 1.5 1.5
AllG oob F ra nce 1. 4 1.4
P ayvment US A 1.2 1.2
C ardagin Networks US A 1. 0 1.0
S ec ond P orc h US A 1. 0 1.0
J ibe US A 0.9 0.9
Wis tia US A 0.8 0.8
C ardS tar US A 0. 7 0.7
B urbn US A 0.5 0.5
Mar-10 Total 5.5 1.5 42.7 99.4 19.0 168.1

Apr-10 Vidyo US A 25. 0 25. 0

MokaF ive US A 21. 0 21. 0
P ros per.com US A 14.6 14. 6
F res hP lanet US A 1. 5 1.5
NearVers e US A 1.0 1.0
Apr-10 Total 1.0 1.5 46.0 14.6 63.1

G rand Total 12.2 3.5 67.3 159.0 168.8 24.6 435.3

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
F res hP lanet US A www. fres hplanet. com F res hP lanet is a s ocial cas ual gaming company bas ed in Manhattan, building fun and s mart online ga mes for the iP ad and F acebook. Its
firs t iP ad app is R ed F is h, an educational game aimed at children between 3 a nd 7-years -old.
MokaF ive US A www. moka5. com moka 5, Inc. develops and ma rkets virtua l computer technology in the United S tates . It offers moka5 E ngine, a s oftware application for
s ubs cribing, running, creating, dis tributing, and upda ting L iveP C s , the virtual computers . T he company’s products include Moka5 L iveP C s ,
which contains an operating s ys tem and a s et of applications to run a virtual computer; Moka5 E ngine, a W indows edition, which is us ed to
launch, crea te, and s hare L iveP C s on W indows XP machines ; and Moka5 E ngine, a bare metal vers ion of Moka5 E ngine, which is us ed to
create a Mok a5 L iveP C appliance. T he company wa s formerly known as S k yblue T echnologies , Inc. moka5, Inc. wa s founded in 2005 a nd is
headqua rtered in R edwood C ity, C alifornia.

NearVers e US A www. nearvers e. com NearV ers e is a mobile IP network delivered as an application s ervice. Nea rV ers e launched its firs t iP hone a pplica tion, L oK as t, in March
P ros per.com US A www. pros per. com P ros per is a people-to-people lending marketpla ce that attempts to make cons umer lending more financially and s ocially rewarding. At
P ros per, people lis t and bid on loans us ing P ros per’s online auction platform. P ros pective lenders s et their minimum interes t ra te and bid in
increments of $50 to $25, 000 on loan lis tings they s elect. P ros per generates revenue by collecting a one-time 1% or 2% fee on funded loans
from borrowers , and as s es s es a 0. 5% or 1. 0% annual loa n s ervicing fee to lenders .
Tiny S peck US A tinys peck. com T iny S peck, Inc. makes a nd provides online games . T he company was founded in 2009 and is bas ed in S an F rancis co, C alifornia.
Vidyo US A www. vidyo. com V idyo, Inc. provides Internet bas ed video conference s olutions . T he company offers V idyoR oom, a s ys tem tha t configures and dis plays video
in multiple layouts ; V idyoDes ktop, a s oftwa re-bas ed s olution tha t enables video conferencing available on des k top; and V idyoR outer that
a llows the s ys tem to adapt to network conditions , s uch a s packet los s , jitter, network ba ndwidth, and network delay. T he compa ny als o
provides V idyoP ortal, a W eb-bas ed environment tha t enable a dminis trators to mana ge the V idyoC onferencing s ys tem; and V idyoG atewa y
tha t s upports H. 264 and H. 263 video conferencing, as well as G . 711, G . 722, S IP , and H. 323 s ignaling. It offers s olutions to the W eb video
conferencing is s ues , s uch as choppines s , lag, and pixelation. T he company wa s formerly known as L ayered Media, Inc. and changed its
name to V idyo, Inc. in O ctober 2007. V idyo, Inc. was founded in 2005 and is headquartered in Hackens ack, New J ers ey.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 20

RELEVANT DISCLOSURES APPLICABLE TO: NONE

1. None applicable.

ANALYST CERTIFICATION
Each analyst of Mackie 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.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
I n f o r ma t i o n a b o u t M a cki e 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 st 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 c h t o c l 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 mme n d a t i o n s wh i ch a r e i n
e a c h o f o u r r a t i n g ca t e g o r i e s i s a va i l a b l e o n o u r we b s i t e a t ww w. ma c k i e r e se a r ch . co 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 v e d t o b e r e l i a b l e b u t i t s a c c u r a c y o r c o mp l e t e n e s s 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
M a c k i e R e se a r c h C a 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 li t y. M a c ki e 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 c t 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 c u r i t i e s me n t i o n e d h e r e i n . C o 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 s se d p e r mi s si o n o f
M a c k i e R e se a r c h C a p i t a l Co r p o r a t i o n . ( U . S. I n st i t u t i o n a l Cl i e n t s — R e se 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 M a c ki e R e s e a r c h C a p i t a l C o r p o r a t i o n )
a c c 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 c e i vi n g t h i s r e p o r t s h o u l d e f f e c t t r a n s a ct i o n s
i n s e cu r i t i e s d i s cu s s e d i n t h e r e p o r t t h r o u g h R e se a r c h C a p i t a l U. S . A . I n c. , a Br o ke 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 c u r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

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