JEGIPressRelease

JEGI1H2011M&AOverview ActiveM&AMarketContinues,LedbyMarketing&InteractiveServices
NewYork,NYJune30,2011Mergersandacquisitionsinthemedia,information,marketingservicesand technologysectorscontinuedtobe activeinthefirsthalfof2011,risingmodestlyfrombrisk2010levels. The value of announced transactions reached $23 billion in 1H 2011, a 15% increase over 1H 2010, on a similarvolumeofM&Adeals.Thefirsthalfof2010hadseena61%surgeindealvolumeandanearlyfour timesincreaseintransactionvalueoverdepressed1H2009crisislevels.Continuedgrowthin2011ontop of the large rebound last year reflects a healthy continuing M&A environment, according to The Jordan, Edmiston Group, Inc. (JEGI) (www.jegi.com), the leading independent investment banking firm specializinginM&Aadvisoryservicesacrossthesecoremarkets. Interactive, marketing services and technology markets continue to account for the majority of deal activityandvalue,withtheB2Band B2C Online Media & Technology, Marketing & Interactive Services, and Mobile Media & Technology sectors accounting for 71% of total deals and 63% of deal value in the first half of 2011. Interactive companies are maturing, while still growing rapidly, leading to rising dealsizesinthesemarkets. Marketing&InteractiveServices Thereisasecularevolutionathand,andmarketingdollarscontinuetorapidlyfollowconsumersonline. MediaconsumptioncontinuestoshifttotheInternetandawayfromtraditionalmedia,suchasmagazines andnewspapers.Onaverage,consumersarespending36%oftheirmediatimeonline,comparedto19% justfiveyearsago,accordingtoForresterResearch.Digitaladvertisingdollarshaveconsiderablerunway leftforgrowth,asjust15%ofUSadvertisingspendiscurrentlyonline.Bycomparison,consumersspend 35%oftheirmediatimewithtelevision,andtelevisionaccountsfor33%ofadvertisingrevenue.Thegap betweentimespentonlineandadvertisingdollarsspentonlineequatestoa$35billionannualadvertising opportunityandpointstocontinuingmovementofaddollarstotheInternetinthecomingyears. As a result major media companies, such as Hearst, Meredith and Gannett, have been investing in marketing services to better assist their customers and capture more revenue. Advertising agencies and marketing services companies are retooling their business models via investment in integrated and interactivemarketingsolutions.Largetechnologycompanies,suchasIBM,Cisco,AkamaiandAdobe,are aggressively entering the marketing services market and investing in analytics, optimization and digital

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com www.jegi.com

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advertisingsolutionsfortheenterprise.ThesetrendshavemadeMarketing&InteractiveServicesamong themostactivesectorsforM&A,accountingfor27%ofalltransactionsin1H2011. Areas of Focus for M&A In the first half of 2011, Marketing & Interactive Services M&A was particularly active among both digital andtraditionaladagencies,aswellasamong adnetworks,data&analyticscompanies,and market research/consulting and marketing technology firms. New areas of growth for marketingserviceshavealsoseenmoredeals, such as social media marketing, which accounted for 17 transactions and $250 millionofvaluein1H2011. Social networks now account for 17% of the total minutes spent online, and Facebook commands nearly 700 million users globally. Socialsitesamasslargeamountsofuserdata, which can be utilized for ad targeting and segmenting audiences. As a result, brands and marketers are quickly moving dollars into social. Spending on social network advertising is expected to reach nearly $3 billionin2011,equatingto24%ofdisplayand 10% of total online ad spend. Facebooks share of US online display ad revenues is forecast to grow to 17.7% in 2011, up from 12.2%lastyear,accordingtoeMarketer.

Source:JEGITransactionDatabase

Theshiftofconsumerstospendingmoretimeonlineisalsoincreasingthemovementofretaildollarstoe commerce sites. The domestic ecommerce market accounted for 8.4% of US retail sales in 2010, or $176 billion, and 87% of Internet users shop online. Growth will come from greater share of wallet, offline retailers and brands coming online, and new ecommerce vehicles, such as mobile commerce, flash sales andgroupbuying. Mobilecommerceisgrowingquicklyandisexpectedtoreach$5.7billionin2011,up95%from2010levels. Geotargeting or locationbased targeting of consumers with ads or promotions is the holy grail for advertisersandlocalbusinesses.Therapidadoptionofsmartphones28%ofhandsetsintheUSand19% globallyandtheproliferationoftabletPCsaredrivingmobilecommerceandenhancingtheopportunity for targeting. Retailers are increasingly building mobilecompatible sites, and 21% of smartphone users madeapurchaseontheirhandsetduringthe2010holidayseason.

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com www.jegi.com

JEGIPressRelease

DealValueUpSharplyIn1H2011,totalvaluefortheMarketing&InteractiveServicessectorincreased 81% over 1H 2010 levels, to $5.7 billion for 129 announced transactions. M&A in the Market Research/Consulting,AdAgencyandDigitalAgencysubsectorsaccountedformorethan50%ofthetotal Marketing & Interactive Services M&A value in 1H2011. Marketing Technology and Ad Networks captured 20+% of investment dollars, and there is increasing investment into Data & Analytics, Measurement/Monitoring and Social Media Marketing, which accounted for a combined 20% of total Marketing&InteractiveServicesdealvalueinthefirsthalfof2011. LargerdealswithinMarketing&InteractiveServicesinQ22011included: New Mountain Capital acquisition of SymphonyIRI Group, a retail market research and software company,fromSymphonyTechnologyGroupfor$800million; Publicis Groupe acquisition of Rosetta Marketing Group, a global interactive marketing services firm,fromLindsayGoldbergfor$575million;

M&AValuebyMarketingServicesSubSector,1H2011 100%=$5.7billionTotalM&AValue
SocialMedia Marketing 4% Measurement /Monitoring 7% Market Research/ Consulting 25% Email Search Marketing Marketing 1% 1% PRAgency 1% Other 2%

Data& Analytics 8%

AdNetworks 11%

AdAgency 14%

Marketing Technology 12%

DigitalAgency 14%
Source:JEGITransactionDatabase

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com www.jegi.com

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DG Fast Channel acquisition of MediaMind, a provider of digital advertising delivery, for $524 million; Google acquisition of AdMeld, a platform for online publishers to sell ad inventory, for $400 million;and AllianceDataSystemsacquisitionofAspenMarketingServices,adirectmarketingservicesagency, fromaconsortiumofprivateequityfirms,for$345million. JEGICoPresidentScottPetersprovidedthekeynoteaddressattheCapitalRoundtableconferenceonPE Investing in Marketing & Digital Services in New York City on June 23. Titled The Evolution of Marketing&DigitalServicesandWhereCompaniesareInvestingforGrowth(http://bit.ly/kGig5K),this presentationshowcasesthekeytrendsinthequicklyevolvingmarketing&digitalservicesindustry,where strategic companies are investing for growth, the latest M&A trends in marketing & digital services, PE firmsthatareinvestinginthisfastgrowingmarketandwhereopportunityliesforfutureinvestment. LookingForward Most recently, JEGI completed the sale of Priority Integrated Marketing, a Minneapolisbased leader in healthcareandfinancialservicesmarketing,toDowdenHealthMedia,aportfoliocompanyofHighRoad Capital Partners; and Its About Time, part of Herff Jones Education Division and a leading educational publisher of inquirybased science and math programs, to IAT Interactive. JEGI expects middlemarket M&Atocontinuetobeactivethroughthesecondhalfof2011andinto2012,ascorporationsincreasingly look for high growth interactive, marketing services, mobile and technology assets with innovative business models. Concurrently, private equity firms have $400+ billion of cash to put to work in the marketplaceviatheacquisitionofbothplatformcompaniesandaddonacquisitionstoexistingplatforms. M&AHighlightsfor1H2011 Theb2bonlinemediaandtechnologysectorsawa50%increaseinthenumberofM&Atransactions announcedin1H2011vs.1H2010andamorethanninefoldincreaseindealvalueto$3.1billion,led by eBays acquisition of GSI Commerce for $2.4 billion in Q1. Notable Q2 transactions included Reply.comsacquisitionofMerchantCircle,anonlinemarketingnetworkforsmallbusinessowners,for $60 million; and Liquidity Services acquisition of TruckCenter.com, an online auction site for commercialtrucksandtransportationequipment,for$18million. The b2c online media and technology sector was the most active in the first half of 2011, with 130 transactionsatatotalvalueof$4.6billion.AfewlargertransactionstookplaceinQ12011,including AOLsacquisitionofHuffingtonPostfor$315million.NotableQ2dealsincludedWalmartspurchase ofKosmix,anonlinediscoveryplatform,for$300million;SymphonyTechnologyGroupsacquisition ofShopzilla,anonlinecomparisonshoppingsite,for$165million;andSpecificMediasacquisitionof socialnetworkMySpacefromNewsCorp.for$35million. M&A activity for the businesstobusiness media sector continues to be uneventful, with only eight deals in the first half of 2011 at a total value of $23 million. In Q2 2011, a few larger b2b media companiesshedmagazineassets,includingCrainCommunications,whichsoldAmericanDrycleanerto

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com www.jegi.com

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Charlie Thompson, the magazines longtime publisher; and United Business Media, which sold its ConsultantPrintGroup,comprisingtwopublications,toHMPCommunications. IndustrySector B2BOnlineMedia&Technology B2COnlineMedia&Technology
BusinesstoBusinessMedia ConsumerMagazines Database&InformationServices

Media,Information,MarketingServices&TechnologyM&AActivity
2011 JanuaryJune No.of Value Deals (millions) 39 130 8 16 21 32 11 54 129 44 484 $3,056 $4,554 $23 $2,020 $3,064 $1,272 $165 $2,049 $5,740 $1,345 $23,285 2010 JanuaryJune No.of Value Deals (millions) 26 124 23 12 38 26 12 34 130 46 471 $363 $2,977 $87 $78 $9,283 $2,491 $58 $714 $3,163 $1,041 $20,254 %Change No.of Deals 50% 5% (65%) 33% (45%) 23% (8%) 59% (1%) (4%) 3% Value nm 53% (74%) nm (67%) (49%) 184% 187% 81% 29% 15%

EducationInformation,Technology&Training

Exhibitions&Conferences

HealthcareInformation&Technology

Marketing&InteractiveServices MobileMedia&Technology Total

Source:JEGITransactionDatabase

Theconsumermagazinesectorcontinuestoshowsignsoflife,with16transactionsinthefirsthalfof 2011,atatotalvalueof$2billion.InQ1,HearstCorporationacquiredLagardresmagazineportfolio for$651million.InQ2,TPGCapitalacquiredPrimedia,whichprovideshomeandapartmentguides, from Kohlberg Kravis Roberts for $525 million. Other notable Q2 deals were American Medias acquisitionoftheU.S.editionofOK!magazinefromRichardDesmondforapproximately$25million; andOakleyCapitalsbuyoutoftheremaining66%ofTimeOutfor$23million. The database and information services sector picked up considerably in the second quarter of 2011, withsix$100+milliondeals,includingCoStarGroupsacquisitionofLoopNet,acommercialrealestate data company, for $860 million; Solera Holdings acquisition of Explore Information Services, a provider of data, information and analytics for automotive property and casualty insurers, for $520 million;andKohlbergKravisRobertsacquisitionofIpreo,adataproviderforthecapitalmarkets,from VeronisSuhlerStevensonfor$425million. Theeducationinformation,technologyandtrainingsectorsaw32transactionsannouncedatatotal value of $1.3 billion in 1H 2011. While the number of transactions increased 23% in 1H 2011 vs. 1H 2010, transaction value decreased 49% for the year. The most notable deals of Q2 were Pearsons acquisition of SchoolNet, an education technology company that helps individualize instruction for

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com www.jegi.com

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students and improve teacher effectiveness; Leeds Equity Partners buyout of Nobel Learning Communities, an operator of private schools and online distance learning, for $149 million; and TechnologyCrossoverVenturestakeprivatetransactionofK12,aproviderofproprietarycurriculum andonlineschoolprograms,for$125million.

Theexhibitionsandconferencessectorsaw11transactionsatatotalvalueof$165millionin1H2011, posting a similar number of deals, but a tripling of deal value vs. 1H 2010. United Business Media continued to be an active acquirer of events, including the acquisition of Catersource for the event planningindustry,andABMExhibitions,whichtargetsindustrialmarkets.TarsusGroupcompleted theacquisitionoftwoexhibitionorganizersFairOrganizationsandIFOIstanbulFuarHizmetleri.On the services side, Freeman Companies announced the acquisition of Wheelhouse Solutions, an exhibitionservicesandeventmarketingbusiness,comprisedofChampionExpositionServices,George FernCompanyandImmersaMarketing. In1H2011,dealvaluenearlytripledinthehealthcareinformationandtechnologysectorvs.1H2010, ledbyCCMPsestimated$500millionbuyoutofMedpace,acontractresearchorganization(CRO)that providesdevelopmentservicesfordrug,biologic,anddeviceprograms,inQ2andinVentiveHealths Q1 acquisition of i3 for $400 million. Other notable Q2 deals included Intuits acquisition of Medfusion, a patienttoprovider communications company, from Hamilton Investment Partners for $91 million; Verisk Analytics acquisition of HealthRisk Partner, a provider of solutions to optimize revenue, ensure compliance, and improve quality of care; and Waud Capital Partners acquisition of RevenueCycleSolutions,aproviderofhospitalaccountresolutionservices. Mobile media and technology is one of the most active sectors for M&A, but the pace has steadied overthepastyear,withasimilarnumberofdealsannouncedin1H2011versus1H2010.Q2sawsome largertransactionsinthespace,includingDeNAsacquisitionofngmoco,amobilegamesdeveloper, for $400 million; eBays acquisition of WHERE, a local mobile application that allows users to obtain listings for restaurants, bars and other local businesses, for an estimated $135 million; ValueClicks acquisitionofmobileadplatformGreystripefor$75million;MarchexsacquisitionofJingleNetworks, mobile voice search performance advertising (payforcall) solutions, for $62 million; and Googles acquisition of TalkBin, a mobile platform that lets customers give immediate feedback to local businesses,for$25million.

AboutJEGI The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY is the leading provider of independent investmentbankingservicesforthemedia,information,marketingservicesandtechnologysectors.Since 1987, JEGI has completed more than 500 highprofile M&A transactions for global corporations; middle market and emerging companies; entrepreneurial and family owners; and private equity and venture capitalfirms.Formoreinformation,visitwww.jegi.com. ###

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com www.jegi.com