Software Equity Report

Q 21 3 0 S F WA EIDUS RY O T R N T E UIYR P RT Q T EO

ABOUT OUR FIRMSoftware Equity Group is an investment bank and M&A advisory serving the software andtechnology sectors. Founded in 1992, our firm has guided and advised companies on fivecontinents, including privately-held software and technology companies in the United States,Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listedon the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. SoftwareEquity Group also advises several of the worlds leading private equity firms. We are rankedamong the top ten investment banks worldwide for application software mergers andacquisitions.Our value proposition is unique and compelling. We are skilled and accomplished investmentbankers with extraordinary software, internet and technology domain expertise. Our industryknowledge and experience span virtually every software product category, technology, marketand delivery model, including Software-as-a Service (SaaS), software on-demand andperpetual license. We have profound understanding of software company finances,operations and valuation. We monitor and analyze every publicly disclosed software M&Atransaction, as well as the market, economy and technology trends that impact these deals.Were formidable negotiators and savvy dealmakers who facilitate strategic combinations thatenhance shareholder value.Perhaps most important are the relationships weve built and the industry reputation we enjoy.Software Equity Group is known and respected by publicly traded and privately ownedsoftware and technology companies worldwide, and we speak with them often. Our Quarterlyand Annual Software Industry Equity Reports are read and relied upon by more than eighteenthousand industry executives, entrepreneurs and equity investors in sixty-one countries, andwe have been quoted widely in such leading publications as The Wall Street Journal, Barrons,Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters,Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, EntrepreneurMagazine, Softletter, Software Success, Software CEO Online and Software BusinessMagazine. Software Equity Group’s senior bankers have keynoted and spoken at more thanone hundred software industry conferences and seminars, including Software Business,SoftExpo, Culpepper, VAR Conference, ACETECH, and the Arizona, Colorado, Chicago,Southern California, Denver, San Diego, Washington State and Boulder SoftwareAssociations. Software Equity Group, LLC 12220 El Camino Real, Suite 320 San Diego, CA 92130 www.softwareequity.com p: (858) 509-2800 f: (858) 509-2818

Software Equity Group, L.L.C. 3Q 2011 Software Industry Equity Report ContentsU.S. ECONOMY: SOFTWARE INDUSTRY MACROECONOMICS........................................................................ 2IT SPENDING ............................................................................................................................................................ 3INTERNET RETAIL SPENDING AND ADVERTISING ............................................................................................ 4PUBLIC SOFTWARE/SAAS/INTERNET COMPANY STOCK PERFORMANCE ................................................... 4PUBLIC SOFTWARE/SAAS/INTERNET COMPANY MARKET VALUATIONS ..................................................... 5PUBLIC SOFTWARE COMPANY MARKET VALUATIONS ................................................................................... 5PUBLIC SOFTWARE COMPANY FINANCIAL PERFORMANCE .......................................................................... 6PUBLIC SOFTWARE COMPANY MARKET VALUATIONS AND FINANCIAL PERFORMANCE BY PRODUCTCATEGORY .............................................................................................................................................................. 7PUBLIC SOFTWARE AS A SERVICE (SAAS) COMPANY MARKET VALUATIONS ........................................... 9PUBLIC SOFTWARE AS A SERVICE (SAAS) FINANCIAL PERFORMANCE .................................................... 10PUBLIC INTERNET COMPANY MARKET VALUATIONS .................................................................................... 11PUBLIC INTERNET COMPANY FINANCIAL PERFORMANCE ........................................................................... 12PUBLIC INTERNET COMPANY MARKET VALUATIONS AND FINANCIAL PERFORMANCE BY PRODUCTCATEGORY ............................................................................................................................................................ 12INITIAL PUBLIC OFFERINGS................................................................................................................................ 14M&A DEAL VOLUME AND SPENDING: ALL INDUSTRY SECTORS ................................................................. 17SOFTWARE/SAAS M&A DEAL VOLUME AND SPENDING ................................................................................ 18IMPORTANT CHANGE IN SOFTWARE AND SAAS M&A DATA ACCOUNTING............................................... 19SOFTWARE M&A DEAL CURRENCY................................................................................................................... 19SOFTWARE M&A VALUATIONS .......................................................................................................................... 19SOFTWARE M&A VALUATIONS BY OWNERSHIP ............................................................................................. 20SOFTWARE M&A VALUATIONS BY VERTICAL AND HORIZONTAL MARKETS ............................................. 21M&A VALUATIONS BY SOFTWARE PRODUCT CATEGORY ............................................................................ 21SOFTWARE AS A SERVICE (SAAS) M&A DEAL VOLUME AND VALUATIONS .............................................. 23INTERNET M&A DEAL VOLUME AND VALUATIONS ......................................................................................... 24APPENDIX A: 3Q11 PUBLIC SOFTWARE MARKET VALUATIONS AND STATISTICS BY PRODUCTCATEGORY ............................................................................................................................................................ 26APPENDIX B: 3Q11 PUBLIC INTERNET MARKET VALUATIONS AND STATISTICS BY PRODUCTCATEGORY ............................................................................................................................................................ 29APPENDIX C: 3Q11 MERGERS AND ACQUISITIONS, SELECT PUBLIC SELLER VALUATIONS .................. 30 This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C. Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights. Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C.APPENDIX D: 3Q11 MERGERS AND ACQUISITIONS, MOST ACTIVE BUYERS ............................................. 31APPENDIX E: 3Q11 MERGERS AND ACQUISITIONS, SELECT SOFTWARE INDUSTRY MEGA-DEALS ...... 33APPENDIX F: 3Q11 MERGERS AND ACQUISITIONS, SELECT SOFTWARE-AS-A-SERVICE SELLERS ...... 34APPENDIX G: 3Q11 MERGERS AND ACQUISITIONS – DEAL INSIGHT........................................................... 35APPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS ................................ 37 This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C. Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights. Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 1: U.S. Gross Domestic Product and Unemployment Rate10% GDP % Growth Unemployment Rate8%6% 4.8% 5.0% 3.9%4% 3.6% 3.7% 3.2% 3.1% 2.7% 2.6% 2.0% 2.1% 2.1% 2.2% 1.5% 1.7%2% 1.3% 1.2% 1.3% 1.1% 0.4%0% -0.7% -0.7%-2% -2.7%-4%-6% -5.4% -6.4%-8% 3Q05 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11U.S. ECONOMY: SOFTWARE INDUSTRY MACROECONOMICSWe begin with a brief synopsis of U.S. Gross 0.3% increase in June. Those predicting anDomestic Product (GDP) performance in 3Q11 impending recession need only point to the dearthbased upon the latest data available at this time. of negative economic trends. Only four of theGDP is best defined as the total market value of Board’s ten LEI indicators were positive: Realall final goods and services produced in a country money supply, interest rate spread, buildingin a given year, equal to total consumer, permits and the index of supplier deliveries. Theinvestment and government spending, plus the negative contributors, beginning with the largestvalue of exports, minus the value of imports. negative contributor, were stock prices, the index of consumer expectations, average weeklyIn a Wall Street Journal survey of fifty six leading manufacturing hours, average weekly initialeconomists in September 2011, the average 3Q claims for unemployment insurance (inverted),2011 GDP growth rate was estimated to be 2.0%, manufacturers’ new orders for consumer goodsa modest but encouraging improvement over Q2’s and materials, and manufacturers’ new orders for1.3% growth and Q1’s barely discernable uptick of nondefense capital goods.0.4%. While 2011’s anemic growth rates andrecession predictions are worrisome, growth in Q3 The recent employment report, released by theGDP would mark the ninth consecutive quarter of U.S. Bureau of Labor Statistics, provided someeconomic expansion (Figure 1). However, the reason for guarded optimism. The U.S. economyprospect of actually achieving that 2% forecast is added 103,000 workers in September, sharplyincreasingly unlikely because of the pall hanging beating a Bloomberg News’ survey of economistsover the world’s financial markets from the which projected only 60,000 new workers. TheEuropean debt crisis, head-spinning stock market U.S. unemployment rate refused to budge,volatility, and other macro uncertainty. One in holding steady at 9.1%. Information services andthree economists surveyed by the Wall Street healthcare accounted for most of Q3’s new jobs.Journal now predict the U.S. economy will slip into One economists surveyed by Bloomberg probablyrecession during the next twelve months. sums it up best when he said, “The economy isn’t doing well, but it didn’t lose the momentum thatThe Conference Board’s index of U.S. Leading the markets feared.”Economic Indicators (LEI) rose only 0.3% inAugust, following a 0.6% increase in July and a 2| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsIT SPENDING While 3% - 5% growth in IT spending may conform to what Goldman Sachs characterizes asFor those who may be new to our reports, SEG “normal levels,” the wealth is not being spreadcarefully monitors IT spending each quarter as a evenly among IT providers. A more granularmeans of forecasting downstream public software analysis reveals the growth is driven mostly by acompany financial performance and M&A activity. relatively few product categories, including cloudSeveral of the IT spending analysts we track computing and mobility, that are receiving amodified their earlier projections of 5% - 7% rapidly increasing share of the IT budget. Gartnergrowth in global IT spending, but they did not is forecasting tablet spending will grow at a 52%always agree. Example: In early September, CAGR from 2010 to 2015, boosted by 206% YoYGoldman Sachs cut its 2011 IT spending forecast growth from 2010 to 2011. Goldman Sachsto 5% from 6%, citing lower IT spending in estimates the mobile sector, including tablets, willdeveloped markets as a key driver. In late grow at a CAGR of 75% from 2010 to 2014.September, Gartner increased its 2011 ITspending forecast to 7.6% from 7.1%, citing Investments in public cloud computing and SaaScurrency impacts, rather than any true underlying also continue to rapidly outgrow the broader ITstrength in the global IT spending. market. Gartner forecasts that spending on public cloud computing and SaaS will grow at a five yearDomestically, Goldman and Gartner are CAGR of 19.1% and 14.9%, respectively, fromforecasting 3% and 5% IT growth, respectively, 2010 to 2015, while Goldman Sachs forecastsfor all of 2011. The projected domestic slowdown SaaS spending will see a 20.9% CAGR from 2010is largely driven by sluggish U.S. GDP growth, to 2014, driving the percent of SaaS applicationswhich Goldman determined has a 62% correlation in the enterprise to 15% by 2014.with IT spending growth. Another basis for thespending slowdown: projections of lower S&P 500 The shift in mindset by enterprise CIOs, fromoperating profits. After operating profit growth of rejection to growing acceptance of SaaS deployedover 20% in 2010, Goldman is projecting S&P 500 solutions, has been clearly noted by large publicoperating profits will improve a modest 14% in software companies. Our 2011 buyer survey2011, and only 6% in 2012. (published in our 2010 Annual Report and available on our blog) documented a 131% increase in buyers – most larger, public software Figure 2: Major Market Indices Compared to the SEG Software, Internet and SaaS Indices DOW S&P NASDAQ SEG SaaS SEG SW Index SEG Internet Index 20.0% 15.0% 10.0% 5.0% 0.0% (5.0%) (10.0%) (15.0%) (20.0%) (25.0%) Jan Feb Mar Apr May Jun Jul Aug Sep 3| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & Acquisitionsand IT companies - who declared that in 2011, PUBLIC SOFTWARE/SAAS/INTERNET COMPANYSaaS deployed solutions were a “very important” STOCK PERFORMANCErequisite for acquisition targets. We’ll poll buyersagain in early January, but we expect the trend to The major U.S. exchanges and the median stockcontinue. price performance of public companies comprising our Software, SaaS and InternetUnderscoring the shifting attitude of enterprise Indices all finished lower at the close of Q3 2011.CIOs toward SaaS solutions, a recent Forrester A U.S. credit rating downgrade and Europeanstudy on enterprise spending found 44% of debt fears proved too much for investors, whosurveyed companies are currently implementing eventually opted for capital preservation overor planning to implement SaaS solutions. upside potential. It was a jolting ride. In AugustMoreover, the scope of SaaS deployed enterprise and September, the Dow industrials changed bysolutions is widening. A recent Gartner report more than 1% on 29 days, and more than 2% onhighlighted eight distinct SaaS product categories 15 days. The volatility was reminiscent of thewith notable and growing enterprise penetration. market’s extreme volatility in Q4 2008.Collaboration and CRM were the most popularenterprise deployments of SaaS, at 46% and 32% By the close of the third quarter, the Dow, S&P 500respectively. SaaS deployed ERP applications, and NASDAQ were down 5.7%, 10.0% and 9.0%,which have struggled to gain an enterprise respectively, from the first trading day of 2011foothold due to their mission critical nature and (Figure 2). During the same period, the SEGsignificant back office application integration Software, SEG SaaS and SEG Internet indicesrequirements, reached 7% market penetration. were down 9.5%, 17.9% and 20.5% respectively. The dramatic decline of public Software, SaaS andINTERNET RETAIL SPENDING AND ADVERTISING Internet company stock prices reflects an investor selloff of relatively risky technology stocks and aIn the Internet sector, we believe online retail flight to Treasurys. Across all three SEG trackingsales and Internet advertising spending each indices, 197 (71%) of the 278 public companiesquarter presage the downstream financial comprising our indices reported lower year-to-dateperformance and M&A activity of many public (YTD) stock prices, far greater than the 99Internet companies. Buoyed by a greater number companies (35.6%) that saw their stock pricesof shoppers, online retail sales reached $37.5 decline by the close of 2Q11. Still, ten outstandingbillion in 2Q11 according to comScore, up 14% software companies managed to achieve YTDfrom 2Q10. It was the seventh consecutive stock market returns on September 30 thatquarter of growth for online retail, which already exceeded the first trading day 2011 closing priceaccounts for nearly $1 in every $10 of by more than 45% (Figure 3). Included in thediscretionary spending. Online retail categories group is Internet high flyer, LinkedIn, which postedgrowing at least 15% in Q2 from the same period a 74% YTD return over its first day closing price ina year ago included consumer electronics, May of this year.computer hardware, computer software and eventtickets. Forrester projects online retail sales as a Figure 3: High Flyers – YTD Stock Market Returnpercent of total retail sales will reach 15% by 2011 High Flyers - Stock Market Return2015. 2011 Company Ticker Category StockThe Interactive Advertising Bureau (IAB) and Return MajescoPricewaterhouseCoopers (PwC) reported Internet Entertainment COOL Video Games 160%advertising reached record levels in 1H11, with CompanyInternet ad revenues rising 23.2% to $14.9 billion Liquidity Services LQDT Internet - Retail 128%from $12.1 billion in 1H10. With such an LinkedIn LNKD Internet - Services 74%auspicious first half, it appears highly likely digital 8x8, Inc. EGHT Internet - Infastructure 71% Autonomy Corp. LSE:AU. Content/Document Management 70%advertising by year end will exceed 2010’s record Merge Healthcare MRGE Healthcare 63%spend of $26 billion. Stamps.com STMP Internet - Services 54% LoopNet, Inc. LOOP Internet - Services 54% Athenahealth ATHN SaaS - Healthcare 45% Cerner Corporation CERN Healthcare 45% 4| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & Acquisitions PUBLIC SOFTWARE/SAAS/INTERNET COMPANY Figure 5: High Flyers – Enterprise Value/Revenue MARKET VALUATIONS 3Q11 High Flyers - Enterprise Value/Revenue (Median) Company Ticker Category EV/R The median market valuations of public Baidu.com, Inc. BIDU Internet - Search 29.9x companies comprising the SEG Software, SaaS Qihoo QIHU Internet - Security 26.0x and Internet indices, measured as a multiple of Youku YOKU Internet - Media 24.4x EV/Revenue, were 2.1x, 4.8x and 2.6x, LinkedIn LNKD Internet -Social Network 22.5x Renren RENN Internet - Social Network 21.3x respectively, at the close of the third quarter Zillow Z Internet - Services 17.6x (Figure 4). Although these Q3 median HomeAway AWAY Internet - Travel 17.5x EV/Revenue multiples declined across the board Yandex YNDX Internet - Search 16.3x SINA Corporation SINA Internet - Ad Tech 14.0x from Q2, they were still markedly higher than from Cornerstone CSOD SaaS - Workforce Management 12.2x a year ago. OnDemandFigure 4: SEG Indices 3Q11 Median EV/Revenue PUBLIC SOFTWARE COMPANY MARKET VALUATIONS SEG ‐ SaaS SEG ‐ Software SEG ‐ Internet 6.0x 5.2x By the close of Q3, the median EV/Revenue 5.0x 4.8x multiple of public companies in our SEG SoftwareMedian EV/Revenue Multiple 4.5x 4.2x 4.0x Index had declined to 2.1x from 2.7x the prior 3.1x 3.0x 3.2x quarter. Although 3Q11’s multiple was the lowest 2.8x 3.0x 2.6x 2.7x 2.7x 2.6x since 3Q10 (also 2.1x), it was still well above the 2.1x 2.1x 2.0x 1.9x recession valuations of 2008 – 2009. Despite the decline, the median EV/Rev valuation of the SEG 1.0x Software Index has now been at or above 2.0x for 0.0x eight consecutive quarters (Figure 6). 3Q10 4Q10 1Q11 2Q11 3Q11 Figure 6: SEG Software Index Key Statistics Bucking the lower market valuation trend were ten public software, SaaS and Internet companies SEG - Software: Median Metrics that closed 3Q11 with stellar EV/Revenue Measure 3Q10 4Q10 1Q11 2Q11 3Q11 EV/Revenue 2.1x 2.6x 2.7x 2.7x 2.1x multiples of 12.2x or higher, primarily because EV/EBITDA 12.1x 13.6x 14.6x 13.3x 11.2x investors clearly resonated with their stellar EV/Earnings 24.7x 26.5x 26.4x 24.7x 20.9x median revenue growth rate of 67% (Figure 5). Current Ratio 2.0 2.0 2.1 2.1 2.0 Cash & Eq ($M) $106.1 $109.1 $127.3 $118.5 $117.4 Baidu, known as “China’s Google”, once again led Gross Profit Margin 67.1% 67.4% 67.0% 67.4% 66.8% the pack with a median 3Q11 market valuation of EBITDA Margin 19.4% 18.9% 19.0% 19.2% 18.4% 29.9x EV/Revenue. Baidu reported year-over- Net Income Margin 8.5% 8.4% 8.3% 9.3% 9.1% TTM Revenue Growth 6.3% 9.6% 13.9% 14.1% 14.7% year revenue growth of 83.7% (which is TTM Total Revenue ($M) $278.1 $286.7 $297.9 $295.4 $312.5 extraordinary, considering revenue exceeds $1B), TTM Total EBITDA ($M) $43.9 $45.1 $44.7 $45.3 $45.4 and a remarkable EBITDA margin of 56.9%. Debt / Equity Ratio 24.6% 29.2% 26.8% 25.6% 26.0% Baidu narrowly beat out Qihoo, a Chinese provider of online security that went public in Smaller public software companies were viewed 2011, for top market valuation honors. All told, by investors in 4Q10 and 1Q11 as well positioned five of the ten EV/Revenue high flyers are for accelerated growth in a recovering economy. headquartered in China, demonstrating continued By 3Q11, pummeled by a barrage of bad investor enthusiasm for the mammoth Chinese economic news, investors saw most of these domestic market, despite lingering concerns smaller software companies as especially about inflation and slowed growth. vulnerable to a second recession. Despite revenue growth rates nearly double their peers, the median EV/Revenue multiple of SEG Software Index companies with revenues between $100 million and $200 million dropped from 3.9x at the close of 1Q11 to 2.8x by the 5| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & Acquisitionsclose of the third quarter. The sharp decline The Street strategy of many public softwarebrought their valuations roughly in-line with their companies in 2011 has been to forecastlarger counterparts. conservative revenue growth in case of a sharp economic downturn, then beat their guidance if itPublic software companies with revenues greater didn’t materialize. According to our randomthan $1 billion, which have historically been sample of 28 public software companies withviewed by software investors as a safer harbor recent earnings calls, 23 (82.1%) exceeded theirduring stormy weather, had a median forecast revenue projections (Figure 8). With onlyEV/Revenue multiple of 2.6x in 3Q11 - bolstered, one quarter left for CIOs to spend previouslyno doubt, by a stellar median EBITDA margin of approved IT budget money, look for further24.7% (Figure 7). improvement in the 4Q11 SEG Software Index median TTM revenue growth rate.On an EV/EBITDA basis, public softwarecompany valuations overall closed 3Q11 with a Unsurprisingly, public software companies thatmedian 11.2x, well below 2Q11’s 13.3x (Figure 6). are focused on the hottest IT spending categoriesIn 3Q11, software companies with revenue and vertical markets, including mobility, cloudgreater than $1 billion posted a median infrastructure and healthcare, grew their 3Q11EV/EBITDA multiple of 7.8x, while software TTM revenue far more aggressively than thecompanies with revenue between $100 million 14.7% median. Among the most noteworthy:and $200 million were valued at 10.8x mobility players Trunkbow International HoldingsEV/EBITDA (Figure 7). (104.4%), Gree (82.2%) and Opera (32.9%); healthcare players Merge Healthcare (134.4%)PUBLIC SOFTWARE COMPANY FINANCIAL and eResearchTechnology (80.3%); and cloudPERFORMANCE infrastructure and optimization players F5 networks (36.0%) and VMWare (37.8%).The median TTM revenue of the 144 publiccompanies comprising the SEG Software Index Throughout the Great Recession, as growth ratesgrew 14.7% in 3Q11, compared to 14.1% the prior plummeted, public software companies shiftedquarter (Figure 6). The 14.7% median TTM attention to the bottom line and grew theirgrowth rate was the highest of any quarter since EBITDA margins from a median 11.2% in 4Q07 to2Q07 (16%), and pushed the median TTM a high of 19.4% in 3Q10. The median EBITDArevenue of the SEG Software Index above $300 margins of SEG Software Index companies wasmillion for the first time ever. The $300 million 18.4% at the close 3Q11, slightly below the peak.milestone was achieved less than three years In unpredictable times, achieving forecastedafter the median TTM revenue of the SEG profitability is no easy feat. Of the 28 publicSoftware Index surpassed $200 million in 1Q09 – software companies in our random sample, onlyfurther evidence that consolidation in the software six (21.4%) beat their EPS forecast to the Streetsector is resulting in not only fewer, but (Figure 8). Among the industry’s largest players,considerably larger, publicly traded software Microsoft was the only $500+ million revenuecompanies. company in our random sample to exceed its earnings target.Figure 7: SEG Software Valuation and Financial Performance by Size of Buyer (TTM Revenue) SEG Software Index Companies EV/Revenue EV/EBITDA Revenue Growth EBITDA Margin 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 3Q11 (TTM) 3Q11 (TTM)Revenue Greater Than $1 billion 2.5x 2.6x 2.8x 2.7x 2.6x 8.7x 8.4x 8.5x 8.7x 7.8x 12.2% 24.7%Revenue Between $200 million and $1 billion 2.2x 2.7x 2.6x 2.7x 2.1x 13.1x 14.2x 15.1x 15.5x 13.4x 12.8% 18.5%Revenue Between $100 million and $200 million 2.4x 3.1x 3.9x 3.1x 2.8x 9.8x 12.1x 12.9x 12.6x 10.8x 24.7% 15.4%Revenue Less Than $100 million 1.2x 1.5x 2.2x 2.2x 1.8x 13.5x 15.2x 15.7x 14.2x 13.1x 12.7% 10.5% 6| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 8: Expected vs. Delivered Revenue and Figure 9: SEG Software Historical Median CashEPS Results (as of September 30, 2011) and Median EBITDA MarginsCompany Revenue EPS 140 25.00%Microsoft Corporation 120 20.00% Median EBITDA MarginCisco Systems, Inc. Median Cash Balance 100Oracle Corporation Company ($ millions) Revenues: 80 15.00%Google Inc. Greater thanAdobe Systems Incorporated 60 10.00% $1 billionElectronic Arts Inc. 40BMC Software, Inc. 5.00% 20Mentor Graphics Corporation 0 0.00%Informatica 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11MSCI Inc. Company Revenues:TIBCO Software Inc. Cash EBITDA Margin $500 millionAvid Technology Inc. to $1 billionOpen Text CorporationNICE Systems Ltd. PUBLIC SOFTWARE COMPANY MARKETManhattan Associates, Inc.QAD Inc. VALUATIONS AND FINANCIAL PERFORMANCE BYTeleCommunication Systems, Inc. Company PRODUCT CATEGORY Revenues:MicroStrategy Incorporated $100 - $500Real Networks million While median financial performance metrics areVelti useful for assessing the overall health of theSS&C Corporation software industry and for comparisons to otherAmerican Software, Inc. economic sectors, a deeper analysis of these keyPCTEL, Inc.PDF Solutions, Inc. Company metrics by software product category provides Revenues: greater insight about the software ecosystem. ByScientific Learning Corp. Less thanGeeknet, Inc. $100 million analyzing how public software companies inPervasive Software Inc. discrete product categories are performing, weNetSol Technologies Inc. increase our understanding of market trends, : Exceeded or Met Expectations sector health, product lifecycles, M&A valuations, : Did Not Meet Expectations IT spending priorities and stock market biases.Public software balance sheets remained healthy As we’ve noted in past reports, the medianin 3Q11. Median cash and equivalents were EV/Revenue valuations and financial results for a$117.4 million, up 10.7% year-over-year and particular software category can be stagnant orcurrent ratios remained at a healthy level of 2.0 can fluctuate wildly each quarter. As a result,(Figure 6). The steady increase in the cash software category rankings, measured by relativereserves of most public software companies over median valuations and financial performance canthe past few years has undoubtedly been a by- also be consistent or volatile quarter-to-quarter.product of their much improved EBITDA margins. That axiom held true, once again, in 3Q11 (FigureConsider that in 3Q07 when the median EBITDA 10). We track this data because the currentmargin was only 11.2%, the median cash and median valuation of companies comprising aequivalents of the SEG Software Index was $70.5 particular software category often weighs heavilymillion. In 3Q11 the median EBITDA margin was when buyers value acquisition targets.18.4% and median cash and equivalents hadgrown to $117.4 million, a 60% increase fromfour years ago (Figure 9). The significant cashreserves and strong balance sheets of mostpublic software companies, particularly theindustry’s largest players, bode well for manysmall and mid-cap software company targets. 7| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 10: SEG Software Categories Revenue EBITDA EBITDA YTD Stock EV/Revenue EV/EBITDA Category Grow th Grow th Margin Return 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 3Q11 (TTM) 3Q11 (TTM) 3Q11 (TTM) 2011 Infrastructure Softw areBilling & Service Management 1.7x 1.8x 1.9x 1.9x 1.3x 9.7x 10.5x 8.7x 8.0x 5.8x 18.5% 7.7% 20.4% -27.0%Content/Document Management 2.5x 2.7x 3.2x 3.4x 2.6x 10.0x 9.7x 11.1x 11.5x 9.8x 14.0% 14.4% 26.6% 9.2%Data Management & Integration 2.3x 2.9x 3.3x 3.3x 2.9x 9.9x 11.0x 16.0x 14.3x 13.3x 20.9% 26.0% 23.4% 3.3%Development Tools & Open Source 2.4x 2.8x 3.0x 2.7x 2.2x 8.6x 9.9x 11.4x 10.3x 6.8x 25.0% 30.2% 24.7% -20.3%Netw orking & Netw ork Performance 2.5x 3.1x 4.3x 4.8x 3.8x 15.3x 18.8x 28.0x 24.7x 18.6x 21.2% 30.2% 22.6% -23.4%ManagementSecurity 2.4x 2.5x 2.4x 2.9x 2.2x 12.9x 14.0x 13.8x 13.9x 11.0x 12.8% 11.9% 20.9% -14.6%Storage & Systems Management 2.4x 2.7x 3.1x 2.9x 2.1x 9.5x 12.0x 12.1x 11.8x 9.3x 10.8% 29.1% 23.1% -12.8% Median 2.4x 2.7x 3.1x 2.9x 2.3x 11.3x 12.1x 12.3x 11.8x 8.9x 18.7% 22.3% 22.6% -10.8% Application Softw areBusiness Intelligence 2.6x 3.1x 3.7x 4.2x 3.9x 24.6x 29.4x 40.3x 46.2x 33.7x 26.3% 7.1% 9.2% -5.1%Education & eLearning 2.0x 2.3x 2.3x 2.4x 3.0x 7.5x 9.9x 15.6x 12.5x 11.8x 6.8% 16.3% 29.1% -14.4%Electronic Design Automation 1.4x 1.6x 2.1x 2.2x 1.6x 17.8x 20.4x 20.8x 20.5x 14.6x 12.0% 110.9% 10.4% -9.5%Engineering, PLM & CAD/CAM 3.0x 3.7x 3.9x 3.7x 2.6x 15.5x 16.5x 19.2x 16.4x 12.8x 14.2% 25.3% 20.3% -27.3%Enterprise Resource Planning 1.9x 2.0x 2.1x 2.1x 1.9x 9.9x 10.7x 11.0x 10.9x 8.9x 17.0% 24.1% 16.1% -8.2%Financial Services 2.0x 2.1x 2.1x 2.4x 2.0x 8.5x 8.8x 9.2x 9.6x 8.4x 2.1% 1.4% 24.0% -7.2%Healthcare 3.4x 3.5x 3.7x 3.8x 3.2x 16.0x 15.9x 17.5x 18.7x 17.4x 23.9% 34.1% 24.3% 5.3%Mobile Solutions/Content 2.4x 3.0x 2.7x 2.7x 2.1x 10.4x 13.3x 22.2x 16.6x 15.6x 16.4% -1.9% 9.3% -26.1%Multimedia, Graphics & Digital Media 3.4x 3.6x 4.0x 3.9x 2.8x 11.3x 17.1x 25.2x 26.5x 17.9x 14.7% 30.6% 21.1% -21.5%Supply Chain Management & Logistics 1.5x 1.8x 1.8x 2.0x 1.7x 9.3x 10.8x 10.8x 11.5x 10.7x 14.4% 16.3% 9.9% -11.3%Video Games 0.6x 0.7x 0.9x 1.0x 1.1x 12.0x 10.5x 8.3x 10.9x 8.3x 0.1% 94.1% 8.7% 3.7%Workforce & Service Management 1.9x 2.2x 2.7x 2.7x 2.2x 16.2x 20.0x 17.3x 17.1x 13.6x 10.3% 31.6% 16.2% -7.3% Median 2.0x 2.2x 2.4x 2.5x 2.1x 12.9x 13.9x 14.6x 13.4x 12.3x 14.1% 24.9% 15.5% -9.2% Other Softw areIT Conglomerates 2.5x 2.1x 2.1x 2.2x 2.1x 7.3x 7.7x 7.1x 5.9x 6.0x 7.9% 6.8% 25.8% -10.8%Vertical - Finance 4.4x 4.6x 4.9x 4.4x 3.6x 11.6x 12.9x 13.6x 13.3x 11.1x 15.6% 14.1% 31.7% -22.2%Vertical - Other 2.0x 2.7x 2.8x 3.1x 2.9x 12.3x 14.2x 14.3x 14.0x 11.9x 15.5% 25.2% 18.6% 6.7% Median 2.6x 2.9x 3.1x 2.9x 2.7x 10.7x 10.4x 11.0x 11.5x 9.9x 15.6% 15.8% 20.5% -0.6%The SEG Software Index is comprised of 22 2.1x EV/Revenue multiple and 14.1% revenuesoftware product categories sorted into three growth rate. The Networking and Networkbroad groups, Infrastructure Software, Application Performance Management product categorySoftware and Other. The Infrastructure Software posted the highest median EV/Revenue multiplegroup is comprised primarily of utilities, tools, in the Infrastructure Software segment, 3.8x.middleware, systems, platforms and technologies Companies comprising the Networking andto create, integrate, optimize, deliver, monitor, Network Performance Management productstore and protect enterprise applications. The category continued to benefit from strong demandApplication Software group consists primarily of for WAN optimization required to deliver softwaresolutions to perform, analyze, design and manage rapidly over cloud- based architectures.information and data in one, or many, specific SolarWinds recorded the highest medianindustry sectors. The Other Software group is EV/Revenue of the group at 8.7x while F5comprised of companies that concentrate on a Networks posted the highest year-over-yearspecific vertical or the emerging class of IT revenue growth of 36.0%.Conglomerates who span numerous productcategories, such as Oracle, Microsoft, HP and Development tools & open source achieved theIBM. highest median TTM revenue growth rates at 25.0%, led by Magic Software (45.0%), GeekNetIn 3Q11, public Infrastructure Software companies (42.6%) and BSQUARE (35.7%). Collectively, theoutpaced their Application Software counterparts group is driven by unprecedented demand forin nearly all metrics tracked (Figure 10). software solutions and toolsets to create, powerParticularly noteworthy was the Infrastructure and deploy the infrastructure for mobile and cloudgroup’s median 2.3x EV/Revenue multiple and computing.18.7% TTM revenue growth in the third quarter,as compared to the Application group’s median 8| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsEvery product category within the infrastructure PUBLIC SOFTWARE AS A SERVICE (SAAS)software group achieved median TTM EBITDA COMPANY MARKET VALUATIONSmargins greater than 20%, led byContent/Document Management’s median TTM After dropping to a low of 3.1x medianEBITDA margin of 26.6%. EV/Revenue in 3Q10, public SaaS company median EV/Revenue multiples have risen steadily,From the standpoint of market valuation, the only reaching a three year high of 5.2x in 2Q11 beforecategory in the Infrastructure group with a median falling to 4.5x in the third quarter (Figure 11).EV/Revenue multiple below the SEG SoftwareIndex median of 2.1x was Billing & Service Figure 11: SEG SaaS Index Key StatisticsManagement, which dropped from a median SEG - SaaS: Median MetricsEV/Revenue multiple of 1.9x in 2Q11 to 1.3x in Measure 3Q10 4Q10 1Q11 2Q11 3Q113Q11 after recording the worst YTD stock return (- EV/Revenue 3.1x 4.2x 4.8x 5.2x 4.5x27%) of any category in the group. EV/EBITDA 30.2x 34.4x 38.3x 40.3x 29.7x EV/Earnings 76.0x 79.7x 124.2x 86.0x 78.2xWithin the Application Software segment, Current Ratio 1.7 1.8 1.8 2.0 2.0Business Intelligence recorded the highest Cash & Eq ($M) $59.0 $61.0 $64.4 $66.3 $83.6median EV/Revenue multiple of 3.9x in 3Q11, Gross Profit Margin 67.2% 68.1% 68.3% 69.0% 69.3%down slightly from 4.2x in 2Q11. Public EBITDA Margin 9.7% 9.7% 10.1% 8.7% 9.5%companies comprising the Business Intelligence Net Income Margin 1.3% 1.7% 1.3% 0.7% 1.0%category are benefitting from enterprise demand TTM Revenue Growth 14.6% 15.1% 20.5% 23.3% 24.9%for data mining, data handling and data analytics TTM Total Revenue ($M) $151.3 $159.9 $170.3 $177.2 $187.1 TTM Total EBITDA ($M) $11.0 $13.2 $14.7 $14.7 $16.6solutions that can convert massive amounts of Debt / Equity Ratio 2.1% 4.1% 3.8% 3.0% 2.8%structured and unstructured data into intelligencethat can drive both top line growth andprofitability. The category leader was Qlik The Q3 decline in market valuation wasTechnologies, boasting an impressive 7.7x pervasive, with 24 of 26 companies in the SEGmedian EV/Revenue multiple, and impressive SaaS index reporting a quarter-over-quarterTTM revenue growth (39.2%). decline in EV/Revenue. Athenahealth and SPS Commerce were the only exceptions (Figure 12).Other product categories with median Although Cornerstone OnDemand’s EV/RevenueEV/Revenue multiples of 3.0x or higher include multiple plummeted from 21.5 in 1Q11 to 17.3x inHealthcare (3.2x) and Education & eLearning 2Q11, and then to 12.2x in the third quarter, it was(3.0x). Healthcare software companies continue the lone SaaS company trading above 10xto benefit from strong market demand for median EV/Revenue at the close of Q3. Twelveimproved revenue management, HIPAA SaaS companies traded at median EV/Revenuecompliance and the growing digitization of patient multiples of 5.0x or higher in 3Q11 compared withrecords. The Education & eLearning product only six the same quarter a year earlier.category is struggling with delayed purchases dueto budget cuts and regulatory uncertainty - Our readers will recall that at the close of 2007,resulting in a paltry 6.8% revenue growth rate, the public SaaS companies commanded asecond lowest among twenty two product breathtaking median EV/Revenue multiple of 6.4x,categories. But despite these impediments, compared to the much lower, but historically high,valuations and M&A activity in this category (more 2.7x median valuation multiple of their on-premiseon this below) increased in 3Q11 due to mounting counterparts. That equated to a 137% SaaSpressure on school districts to improve student valuation premium. The median SaaSand school performance with technology enabled EV/Revenue multiple for calendar year 2010learning. dropped to 3.6x, compared to 2.3x for on-premise software companies, narrowing the valuation differential to 57%. 9| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 12: Public SaaS Companies SEG SaaS Index EV/Revenue EV/EBITDA TTM Revenue Grow th EBITDA Margin Com pany Category 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11Athenahealth (ATHN) Health Care Mgmt 4.0x 5.6x 5.8x 5.5x 6.8x 36.0x 43.5x 42.2x 37.2x 40.1x 34.1% 33.9% 30.2% 29.2% 30.5% 11.2% 12.9% 13.8% 14.9% 16.9%Concur (CNQR) Accounting & Finance 7.7x 8.0x 7.9x 7.4x 5.6x 33.4x 36.2x 37.7x 44.2x 38.0x 16.6% 18.3% 19.0% 18.6% 18.4% 23.2% 22.2% 21.0% 16.7% 14.7%Constant Contact (CTCT) CRM 3.1x 3.4x 4.2x 3.6x 2.2x 65.9x 57.6x 59.0x 54.2x 27.1x 41.5% 38.2% 35.0% 31.6% 28.2% 4.7% 5.9% 7.2% 6.6% 8.0%Convio (CNVO) CRM 1.6x 1.5x 1.8x 2.2x 1.6x 17.2x 15.2x 18.5x 25.5x 18.0x - - 10.6% 9.5% 10.2% 9.1% 9.7% 9.9% 8.6% 8.7%Cornerstone OnDemand (CSOD) Workforce Mgmt - - 21.5x 17.3x 12.2x - - - - - 49.4% - 49.1% - - -17.0% -19.2% -26.1% -27.1% -33.7%DealerTrack (TRAK) Vertical - Automotive 2.0x 2.6x 2.7x 3.1x 2.4x 19.4x 23.0x 22.3x 22.6x 15.4x 0.9% 3.5% 8.1% 16.6% 26.3% 10.4% 11.1% 12.1% 13.6% 15.7%DemandTec (DMAN) SCM 2.0x 3.2x 4.0x 3.0x 1.6x - - - - - 0.6% 1.2% 4.3% 12.0% 13.2% -8.8% -8.8% -8.7% -8.5% -9.5%Ellie Mae (ELLI) Financial Services - - - 4.3x 1.6x - - - 53.1x 15.7x - - 14.7% 23.3% - 3.6% -0.4% 6.6% 8.0% 10.5%IntraLinks Holdings (IL) Financial Services 3.1x 6.5x 7.7x 5.9x 2.5x 30.8x 66.7x 43.5x 36.6x 18.1x - - 31.0% 34.8% 30.6% 10.0% 9.7% 17.6% 16.1% 13.9%Kenexa (KNXA) Workforce Mgmt 1.3x 2.1x 2.8x 3.2x 2.2x 14.2x 26.1x 32.2x 40.3x 29.7x -7.6% 6.5% 24.5% 36.7% 46.9% 9.3% 8.2% 8.6% 7.9% 7.3%LivePerson (LPSN) CRM 3.1x 4.2x 4.7x 4.9x 4.5x 15.2x 20.6x 23.7x 23.5x 21.7x 24.3% 27.2% 25.6% 23.7% 21.9% 20.3% 20.3% 19.7% 20.6% 20.5%Medidata Solutions (MDSO) Clinical Mgmt 2.1x 2.5x 3.1x 2.8x 1.8x 13.3x 14.8x 16.1x 14.8x 8.3x 19.0% 16.8% 18.5% 17.4% 19.0% 15.5% 16.8% 19.5% 19.1% 21.4%Netsuite (N) ERP 5.9x 7.6x 9.0x 10.7x 9.8x - - - - - 7.5% 11.6% 16.0% 19.6% 21.1% -7.9% -6.8% -6.9% -7.1% -7.9%RealPage (RP) Property Mgmt 7.1x 10.0x 9.7x 9.2x 6.8x 50.8x 70.8x 70.3x 69.3x 51.4x - - 33.6% 36.6% 38.3% 13.9% 14.1% 13.8% 13.3% 13.1%Responsys (MKTG) Digital Marketing - - - 7.3x 5.3x - - - 40.6x 28.6x 33.0% - 41.2% - - 20.8% 17.6% 19.9% 18.0% 18.5%RightNow (RNOW) CRM 2.6x 4.0x 4.2x 5.0x 4.6x 29.6x 41.9x 39.8x 45.8x 44.5x 14.6% 19.4% 21.5% 23.3% 24.9% 8.6% 9.5% 10.6% 10.9% 10.3%Salesforce.com (CRM) CRM 8.7x 9.5x 10.4x 10.3x 9.1x 75.8x 83.2x 108.1x 132.8x 153.1x 22.6% 25.2% 26.9% 29.6% 33.0% 11.5% 11.5% 9.7% 7.8% 5.9%SciQuest (SQI) SCM 6.6x 5.6x 5.8x 6.6x 5.9x 30.8x 26.3x 29.3x 36.3x 38.7x - - 17.4% 19.0% 19.7% 21.5% 21.3% 19.7% 18.2% 15.3%SoundBite Communications (SDBT) CRM 0.3x 0.3x 0.3x 0.2x 0.2x - - - - - 0.8% -0.7% -1.7% -4.5% -5.2% -3.2% -4.9% -3.6% -5.1% -3.9%SPS Commerce (SPSC) SCM 2.4x 2.7x 3.2x 3.3x 3.6x 22.0x 24.0x 31.4x 37.4x 47.2x - 19.0% 18.2% 19.1% 22.5% 10.7% 11.4% 10.2% 8.7% 7.6%SuccessFactors (SFSF) Workforce Mgmt 6.9x 9.6x 11.2x 9.9x 6.9x - - - - - 29.8% 30.7% 34.5% 40.7% 44.0% -2.5% -5.7% -7.1% -8.3% -11.2%Taleo (TLEO) Workforce Mgmt 3.7x 4.3x 4.8x 5.2x 3.5x 27.3x 32.5x 38.9x 45.4x 26.5x 10.8% 12.6% 19.6% 23.5% 28.7% 13.4% 13.1% 12.4% 11.4% 13.1%Tangoe (TNGO) Communication Mgmt - - - - 5.2x - - - - 67.5x - - 22.5% 27.4% 36.0% 7.6% 7.4% 7.3% 7.3% 7.7%The Ultimate Softw are Group (ULTI) Workforce Mgmt 3.9x 4.7x 5.6x 5.7x 5.1x 66.2x 67.9x 67.6x 70.9x 59.4x 11.1% 13.3% 16.1% 16.5% 16.8% 5.9% 7.0% 8.3% 8.1% 8.6%Vocus (VOCS) CRM 2.3x 4.2x 4.2x 4.3x 3.1x 135.0x 218.3x 271.9x - 1604.5x 8.6% 11.6% 14.4% 17.4% 19.1% 1.7% 1.9% 1.6% -0.5% 0.2%Zix Corporation (ZIXI) Security 4.9x 8.0x 7.3x 6.0x 5.5x 13.9x 18.8x 36.2x 24.2x 20.1x -3.7% -3.3% 25.2% 30.9% 31.5% 35.1% 42.3% 20.2% 24.7% 27.2% Median: 3.1x 4.2x 4.8x 5.2x 4.5x 30.2x 34.4x 38.3x 40.3x 29.7x 14.6% 15.1% 20.5% 23.3% 24.9% 9.7% 9.7% 10.1% 8.7% 9.5%By the close of 3Q11, however, the valuation PUBLIC SOFTWARE AS A SERVICE (SAAS)differential of public SaaS vs. public on-premise FINANCIAL PERFORMANCEsoftware providers grew to 114%, marking thefourth consecutive quarter the SaaS valuation After bottoming out at 13.7% in 2Q10, the SaaSpremium widened (Figure 13). Indeed, SaaS median TTM revenue growth rate reversedvaluations outperformed the median on-premise course, inching up to 14.6% in 3Q10, endingsoftware valuation almost across the board. Of the eleven consecutive quarters of decline. In 4Q1025 public SaaS companies comprising the SEG the TTM median revenue growth rate of publicSaaS Index, only five (20%) companies – Convio, SaaS providers was 15.1%, then climbed toDemandTec, Elie Mae, Medidata Solutions and 20.5% in 1Q11 and 23.3% in the second quarter.SoundBite Communications - posted median In 3Q11 the median TTM revenue growth rateEV/Revenue multiples below the 2.1x median ticked up to 24.9%, the highest in eight quartersEV/Revenue of the SEG Software Index. It’s clear and the fifth consecutive QoQ increase (Figureinvestors continue to resonate with SaaS’ 11). Defying the stagnant economy, eight (31%)subscription based revenue model and SaaS’ of twenty six public SaaS companies achievedobvious appeal to the huge small/medium business TTM revenue growth greater than 30% in 3Q11market. When that market begins to recover, look (Figure 12).for many SaaS valuations to skyrocket. Profitability posed more of a problem for publicFigure 13: Historical EV/Rev multiples for SaaS companies than revenue growth, mostlySEG SaaS and SEG Software Indices because of their subscription models, 6.0x infrastructure investments and heavy spending on SEG ‐ SaaS SEG ‐ Software 5.2x 4.8x sales and marketing. Historically, median SaaS 5.0x 4.5xMedian EV/Revenue Multiple 4.2x TTM EBITDA margins were dismal in comparison 3.8x 4.0x 3.5x to on-premise EBITDA margins. But as SaaS 3.1x revenue growth rates slowed during the Great 3.0x 2.6x 2.7x 2.7x 2.3x 2.3x 2.1x 2.1x Recession, public SaaS providers focused on 2.0x improved profitability, and most succeeded in growing their bottom lines through operational 1.0x improvements, reduced infrastructure spending and subscription renewals. 0.0x 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 10| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsPredictably, SaaS EBITDA margins have eroded PUBLIC INTERNET COMPANY MARKETsomewhat post-Recession, declining to a median VALUATIONS9.5% in 3Q11 from 10.1% in 1Q11. The declinein the median EBITDA margin of the SEG SaaS The median EV/Revenue multiple for the 85Index signals a reprioritization by public SaaS public companies comprising the SEG Internetcompanies on growth over profitability, as Index was 2.6x in 3Q11, down 19% from the 3.2xreflected by their YoY increased spending in posted in 2Q11. The median 3Q11 Internet3Q11 on R&D, S&M and G&A as a percent of company EV/EBITDA multiple was 13.1x, downtotal revenue (Figure 14). markedly from 18.1x in 2Q11 (Figure 16). The second quarter of 2011 marks the fourthFigure 14: SEG SaaS Median Operating consecutive quarter the SEG Internet IndexExpenses as a % of Total Revenue median EV/Revenue multiple has exceeded the 35.0% SEG Software Index median EV/Revenue multiple. While a similar phenomenon occurred in 30.0% both 2Q08 and 2Q09, we believe this differential 25.0% will continue and grow for the foreseeable future,% of Revenue 20.0% as investors continue to shift their attention from 15.0% public on-premise software companies to public 10.0% Internet and SaaS providers. 5.0% Figure 16: SEG Internet Index Key Statistics 0.0% SEG - Internet: Median Metrics R&D S&M G&A Measure 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 3Q11 EV/Revenue 1.9x 2.8x 3.0x 3.2x 2.6x EV/EBITDA 11.9x 14.7x 15.0x 18.1x 13.1xProfitability among the public SaaS providers EV/Earnings 21.5x 27.6x 26.9x 32.3x 28.1xvaried widely, as they shifted into growth mode at Current Ratio 2.4 2.4 2.4 2.4 2.7varying speeds. Five (19%) of the twenty six Cash & Eq ($M) $102.6 $89.6 $113.3 $105.9 $132.0public SaaS companies in our index reported Gross Profit Margin 63.6% 64.1% 63.7% 64.8% 65.2%negative EBITDA margins in 3Q11, whereas three EBITDA Margin 16.8% 15.3% 16.8% 15.3% 16.4% Net Income Margin 5.4% 5.7% 6.0% 5.4% 5.0%public SaaS companies exceeded 20% EBITDA TTM Revenue Growth 17.7% 19.7% 22.6% 20.2% 20.9%margins. TTM Total Revenue ($M) $246.4 $272.3 $291.7 $312.1 $342.1 TTM Total EBITDA ($M) $31.9 $32.7 $37.7 $35.8 $39.9Investors appear to be fully on board with this shift Debt / Equity Ratio 5.6% 3.5% 3.8% 9.4% 5.7%in operating emphasis. At the close of 3Q11,public SaaS companies with TTM revenue growth Relative to their SaaS counterparts, however,rates above 30% were rewarded with a median Internet EV/Revenue valuations still lag far6.8x EV/Revenue multiple, compared to a median behind. In 3Q11, the median market valuation of3.5x EV/Revenue multiple for public SaaS public Internet providers was 43% lower thancompanies with TTM revenue growth rates below public SaaS companies, despite being 73% more30% (Figure 15). profitable (Figure 17). As evidenced by theFigure 15: 3Q11 Public SaaS EV/Rev inverse relationship between EBITDA margin andMultiples vs. TTM Revenue Growth EV/Revenue multiples, investors are clearly not 8.0x focused on profitability. Internet providers, 7.0x 6.8x currently spending a median 21% of all revenue on sales & marketing, might be better served by 6.0x upping the sales & marketing ante to equal theMedian EV/Revenue 5.0x median 33% of revenue spent by public SaaS 4.0x 3.5x providers. 3.0x 2.0x Chinese based Internet companies, impacted by 1.0x hints of a slowing Chinese economy and by 0.0x accounting irregularities, saw their valuations TTM Revenue Growth TTM Revenue Growth Greater than 30% Less Than 30% plummet in 3Q11. In 3Q11, the fourteen 11| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 17: 3Q11 Median Market Valuation revenue of $187.1 million in Q3, yet only a slightlyand Financial Performance Comparison of higher TTM revenue growth rate of 24.9%.SEG Indices 30.0% 4.5x 5 Equally impressive, Internet companies achieved 4.5 a median EBITDA margin of 16.4% in 3Q11, Median EV/Revenue Multiple 25.0% 4 modestly less than the 18.4% median EBITDA TTM Revenue Growth & 20.0% 3.5 margin of public on-premise software companies, EBITDA Margin 2.6x 3 2.1x but considerably greater than the 9.5% median 15.0% 2.5 2 EBITDA posted by public SaaS companies 10.0% 1.5 (Figure 17). The solid profitability of these 5.0% 1 Internet providers contributed to very healthy 0.5 balance sheets, with median cash and cash 0.0% 0 SaaS Internet Software equivalent balances greater than $130 million, up Revenue Growth EBITDA Margin EV/Revenue 25% QoQ and 29% YoY, and a strong current ratio of 2.7 (Figure 16).companies in our SEG Internet Index with The solid EBITDA margins of public Internetheadquarters in China posted a median companies are particularly extraordinary whenEV/Revenue multiple of 4.7x, down 37% from the taking into account the mashup nature of Internet7.5x posted in 2Q11 (Figure 18). Nevertheless, business models which typically involve significantChinese based companies still posted 96% higher revenue sharing. The median gross profit marginmedian EV/Revenue multiples than the remaining of Internet providers was 65.2% in 3Q1171 public companies in the SEG Internet Index compared to a third quarter median 66.8% marginthat are trading at a median 2.4x EV/Revenue. of public software companies and a median 69.3% margin of public SaaS companies. PublicFigure 18: 3Q11 Median EV/Revenue Comparison Internet companies typically compensate byof Chinese and U.S. based firms spending less on Research & Development and China HQ US. HQ Sales & Marketing than their on-premise and 8.0x 7.5x SaaS software peers. In 3Q11, Internet 7.0x companies spent only 9.3% of revenues on R&D 6.0x whereas their SaaS and on-premise peers spentMedian EV/Revenue 5.0x 4.7x 15.0% and 13.9% respectively. Similarly, Internet 4.0x companies spent only 20.6% of revenues on S&M 3.0x 2.4x 2.4x compared to 33.2% and 24.4% by SaaS and on- 2.0x premise peers respectively. 1.0x 0.0x PUBLIC INTERNET COMPANY MARKET 2Q11 3Q11 VALUATIONS AND FINANCIAL PERFORMANCE BY PRODUCT CATEGORYPUBLIC INTERNET COMPANY FINANCIALPERFORMANCE Segmenting the public Internet companies comprising our SEG Internet Index into discreteInternet providers in the SEG Internet Index product categories can provide valuable insightclosed 3Q11 with a median TTM revenue growth about market trends, sector health, productof 20.9%, up slightly from 2Q11’s TTM growth lifecycles, Internet retail and advertising spendingrate of 20.2%. One out of four companies in the impacts and stock market biases. But perhapsSEG Internet Index posted TTM revenue growth most importantly, we track this data because therates greater than 35%. Considering the median current median valuation of companiesTTM revenue of public Internet companies is $342 comprising a particular Internet category oftenmillion, the largest among our three tracking weighs heavily when buyers value acquisitionindexes, the growth rate is especially impressive. targets.Public SaaS companies had median TTM 12| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsThe SEG Software Index is comprised of eight social media service for business professionals;Internet product categories: and by Renren (21.3x), a Chinese social media provider known as the Facebook of China. Ad Tech & Lead Generation – Companies that provide key elements in the Internet The Travel product category followed close advertising arena such as search marketing behind, with a median EV/Revenue of 5.0x in Q3. services, software to host and manage ads The Travel product category had been the and a network of websites that run ads. Internet leader in median EV/Revenue for the Representative companies include ValueClick prior three quarters, but suffered a dramatic 31% and SINA. drop in QoQ valuation from 2Q11 to 3Q11, the Infrastructure – Companies that provide key worst among all product categories. The selloff is elements in hosting, communications, storage most likely attributable to decelerating TTM and content delivery. Representative revenue growth, which declined from 34.5% in companies include Akamai, Rackspace, 2Q11 to 25.7% in 3Q11. Despite the drop, the Digital River and VeriSign. category still boasts two companies with median Media – Companies that provide or distribute EV/Revenue multiples greater than 10.0x – content online. Representative companies HomeAway (17.6x) and Ctrip (10.4x). include Yahoo, Netflix, Pandora Media, Demand Media and Youku (often referred to The stark contrast in financial performance and as China’s Youtube). market valuation of on-premise vs. online is Retail – Companies that facilitate retail especially poignant in the video game category. transactions online. Representative Video game developers that generate the majority companies include Amazon, eBay and of their revenue through on-line gaming are Mercadolibre. significantly outperforming those that generate the Search – Companies that operate search majority of their revenue through retail. In 3Q11 engines. Representative companies include software companies distributing games through Google, Baidu and Yandex. retail channels closed 3Q11 with 0.1% TTM Services – Companies that provide various revenue growth rate and a 8.7% EBITDA margin services including, but not limited to, photo – the lowest among all SEG Software Index sharing, social networking and security over product categories. Predictably, these public the Internet. Representative companies software companies had a median EV/Revenue of include Shutterfly, LinkedIn, Ancestory.com 1.1x in 3Q11, the lowest, as well, of all SEG and Renren (often referred to as China’s Software Index product categories. Facebook). Travel – Companies that facilitate ticketing Conversely, public Internet providers that host transactions for the travel industry. their games online posted median TTM revenue Representative companies include Priceline, growth of 29.7%, and staggering EBITDA margins Ctrip and Expedia. of 49.7%. In response, investors rewarded these Internet game purveyors with a median Video Games – Companies that primarily EV/Revenue multiple of 4.6x (Figure 19), led by deliver video games through the Internet. Tencent Holdings (11.3x) and NCSoft (9.6x). We Representative companies include Netease, expect the disparity among retail vs online gaming ChangeYou and NCSoft. developers to increase, given the growing popularity of more community focused games,Enterprise valuations of companies comprising smart phone gaming enablement and the wildthe SEG Internet Index varied widely by Internet successes of Zynga and a host of other playerscategory in 3Q11 (Figure 19). Internet services that have leveraged the Facebook platform andcompanies, the only Internet category to mobile app stores.experience QoQ growth in median EV/Revenue,led all of its counterparts in 3Q11, posting amedian EV/Revenue multiple of 5.1x. Themedian EV/Revenue multiple was boosted byQihoo (26.0x), a provider of online security basedin China; by LinkedIn (22.5x), the well-known 13| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 19: SEG Internet Index Median Metrics by Category SEG - Internet Index Revenue EBITDA EBTIDA YTD EV/Revenue EV/EBITDA Growth Growth Margin Stock Category (TTM) (TTM) (TTM) Return 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 3Q11 3Q11 3Q11 2011Ad Tech & Lead Gen 1.4x 2.3x 2.7x 2.3x 1.9x 24.9x 18.8x 14.5x 11.2x 13.0x 24.1% 32.0% 10.5% -24.5%Infrastructure 1.7x 2.9x 3.2x 2.8x 2.8x 12.4x 16.4x 19.1x 19.2x 11.8x 21.5% 19.1% 16.2% -12.4%Media 1.5x 2.8x 3.0x 3.6x 2.7x 11.6x 14.4x 14.1x 13.1x 10.8x 16.3% 25.5% 15.2% -30.7%Retail 1.3x 2.1x 1.8x 1.7x 1.4x 10.6x 22.4x 12.7x 12.6x 13.9x 12.6% 9.3% 9.4% -18.5%Search 1.1x 1.3x 1.4x 1.5x 1.4x 8.5x 8.9x 9.6x 10.0x 11.2x 26.1% 30.7% 12.2% -18.7%Services 2.0x 2.4x 3.0x 5.0x 5.1x 12.9x 14.6x 16.5x 25.8x 31.8x 21.9% 43.0% 15.1% 7.1%Travel 3.7x 5.8x 6.5x 7.3x 5.0x 12.3x 24.8x 26.3x 32.5x 23.4x 25.7% 45.5% 23.8% -19.4%Video Games 4.2x 4.2x 4.3x 4.8x 4.6x 6.2x 6.6x 6.9x 10.0x 7.1x 29.7% 28.1% 49.7% -18.4%As the result of these favorable market dynamics, models, and consequently posted the two lowestthe Video Game segment led all other Internet median gross profit margins among the eightproduct categories in TTM revenue growth product categories we track (Figure 20).(29.7%) and EBITDA margins (49.7%). While Unsurprisingly, both categories also postedtheir revenue performance was not quite as median EBITDA margins below the Internetimpressive, most other Internet categories median.reported solid revenue growth, with seven of eight INITIAL PUBLIC OFFERINGSproduct categories generating Q3 top lineimprovement in excess of the SEG Software After a remarkable 2Q11, the IPO market slowedIndex’ 14.7% median TTM growth rate. dramatically in the early part of 3Q11 before grinding to a halt at the end of the quarter due toProfitability varied widely among SEG Internet whiplashing market volatility. All four companiesproduct categories. Video Game providers that went public in 3Q11 – Zillow, Tangoe,generated the highest EBITDA margins at 49.7% Carbonite and Tudou Holdings - listed in the firstwhile the Retail product category generated the two months of the quarter. Collectively, the fourlowest EBITDA margins of 9.4%. IPOs raised over $375 million at an average of roughly $94 million per IPO, down significantlyThe stark contrast in profitability is in large part from the average of $344 million per IPO in theattributable to the high degree of profit sharing second quarter. Two anxiously awaited IPOs -inherent in some Internet business models. Groupon and Zynga – opted to delay their comingAdvertising and retail are two product categories out parties. As of the close of the third quarter, 17heavily reliant on revenue sharing business companies have gone public in 2011, a marked increase from the twelve that initially listed in the first three quarters of 2010. Internet IPO volume Figure 20: Gross Profit Margins of has been particular strong, with 13 newly listed Internet Product Categories companies, compared to only one through three 90% 80% quarters of 2010. 78% 76% 80% 68% Gross Profit Margins 70% 63% By the close of Q3, 2011’s seventeen newly 60% 51% public software/SaaS/Internet companies had a 50% 44% 39% median stock return of -27.3%. Three of the four 40% companies that listed in 3Q11 fared far worse, off 30% 20% 49.4% or more from their initial IPO price. Only 10% four of the 17 posted positive YTD stock returns: 0% Zillow, HomeAway, LinkedIn and Ellie Mae. The best performer was LinkedIn, returning 73.5% by the quarter’s close. While the allure of investing in social networking was partially responsible, LinkedIn’s 102.4% revenue growth and 13% EBITDA margin was undoubtedly received by investors as proof positive of the company’s value 14| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 21: 2011 YTD U.S. Software IPOs EV / Revenue EBITDA First Day Company (Ticker) Category IPO Date Offering Amount Enterprise Value EV / Rev Revenue YTD Return EBITDA Growth Margin ReturnTudou Holdings Limited Online Media 8/17/11 $120,000,000 $676,946,250 13.2x n/a $51,294,280 221.1% (85.5%) 32.5% (49.4%)(NASDAQ: TUDO)Carbonite Online Services 8/11/11 $100,000,000 $280,158,300 5.7x n/a $49,120,000 101.8% (31.2%) 32.5% (55.4%)(NASDAQ:CARB)Tangoe Communication 7/27/11 $87,700,000 $390,345,770 4.6x n/a $84,201,880 22.5% 7.7% 32.5% (58.1%)(NASDAQ: TNGO) ManagementZillow Online Services 7/20/11 $69,240,000 $947,018,920 21.1x n/a $44,907,000 74.2% 2.8% 32.5% 1.3%(NASDAQ:Z)HomeAway Online Travel 6/29/11 $216,000,000 $3,601,208,300 19.6x 121.2x $183,741,000 39.6% 17.1% 48.9% 24.5%(NASDAQ:AWAY)Pandora Online Media 6/15/11 $234,940,000 $2,746,176,760 16.4x 609.4x $167,205,000 174.8% (0.3%) 8.9% (8.4%)(NYSE:P)The Active Network Online Services - Event 5/25/11 $165,000,000 $1,225,649,700 4.2x 87.7x $289,090,000 15.1% 5.2% 6.0% (1.7%)(NYSE:ACTV) ManagementYandex Online Search 5/24/11 $1,304,350,000 $12,242,319,710 24.8x 62.2x $493,891,010 43.2% 47.7% 56.0% (18.2%)(NASDAQ:YNDX)LinkedIn Online Services - Social 5/19/11 $175,000,000 $8,800,435,590 30.1x 247.4x $292,315,000 102.4% 13.0% 109.4% 73.5%(NYSE:LNKD) NetworkFriendFinder Networks Online Services 5/11/11 $50,000,000 $701,031,870 2.0x 6.6x $343,312,000 5.6% 32.3% (21.5%) (81.6%)(NASDAQ:FFN)Jiayuan.com International Online Services 5/11/11 $78,000,000 $184,928,560 5.7x 43.7x $32,538,870 162.3% 21.5% (4.4%) (27.3%)(NASDAQ:DATE)Renren Online Services - Social 5/4/11 $743,000,000 $2,189,859,750 26.4x 149.2x $83,067,000 63.9% 13.4% 28.6% (63.6%)(NYSE:RENN) NetworkEllie Mae Document and Business 4/15/11 $86,250,000 $121,317,000 2.7x 42.4x $44,958,000 14.7% 8.0% 35.4% 11.2%(AMEX:ELLI) Process ManagementQihoo 360 Technology Online Services - Security 3/30/11 $175,610,000 $3,936,371,720 68.3x 379.8x $57,665,000 78.5% 18.0% 25.9% (39.5%)(NYSE:QIHU)Cornerstone OnDemand Workforce Management 3/17/11 $136,500,000 $975,737,520 22.3x n/a $43,731,000 49.1% (26.1%) 46.7% (3.5%)(NASDAQ: CSOD)Demand Media Online Media 2/26/11 $151,300,000 $2,223,332,400 8.8x 43.7x $252,936,000 27.5% 20.1% 25.9% (70.4%)(NYSE: DMD)Trunkbow International Holdings Mobile 2/3/11 $20,000,000 $164,518,050 6.7x 11.9x $24,387,920 81.6% 56.8% (5.2%) (55.6%)(NASDAW: TBOW) Median $136,500,000 $975,737,520 13.2x 75.0x $83,067,000 63.9% 13.0% 32.5% (27.3%)All financial numbers are latest data from CapIQ on offering date.First day return compares listed offering price to first day close.Bold denotes SaaS companies. proposition. Interestingly, the five Chinese 201% (vs.32%), and only slightly less profitablecompanies that IPO’d in 2011 had YTD stock when measured by median EBITDA margin (7.8%returns at or below the median for the group. vs. 8.6%). If the GDP begins to grow andRenren posted the worst result, down 63.6% from investors regain their appetite for newly listedits initial IPO price. companies with strong revenue growth and growth potential, Internet IPOs should continue toIn the current climate, IPO aspirants must outperform their software counterparts.demonstrate significant market traction, giveninvestors’ demonstrated preference for revenuegrowth over profitability. The seventeen newlywhen they listed, well above the Q3 median ofpublic software, SaaS and Internet companies.companies had median revenue growth of 63.9%Five of the newly listed companies achieved TTMrevenue growth rates above 100%. Yet eventhese outperformers fell victim to the market’svolatility, as only one (LinkedIn) of theseoverachievers generated a positive YTD stockreturn as of the close of the third quarter.Ten software companies filed S-1’s in 3Q11,bringing the U.S. software IPO queue up toseventeen (Figure 22). The IPO pipeline consistsof a healthy group of software companies acrossthe on-premise software, SaaS and Internetsectors. Internet companies in the pipeline aremuch larger and growing considerably faster thantheir on-premise software company counterparts,with median TTM revenue of $127 million (vs. $66million) and a median revenue growth rate of 15| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 22: U.S. Software IPO Pipeline Filing Revenue EBITDA Company (Ticker) Category Offering Amount Revenue Date Growth (YoY) Margin Software CategoryGuidewire Insurance Management 9/2/11 $100,000,000 $144,700,000 70.7% 15.7%MobiTV Mobile Content 8/31/11 $75,000,000 $66,824,000 7.0% 1.1%Jive Software Social Media 8/24/11 $100,000,000 $46,268,000 54.3% (55.3%)Exa Corporation Engineering 8/3/11 $86,250,000 $37,732,000 6.0% 11.8%Tim w.e. SGPS, S.A. Mobile 7/28/11 $181,130,000 $309,900,000 30.1% 10.0%Greenway Medical Healthcare 7/15/11 $100,000,000 $64,600,000 39.0% 7.1%TechnologiesImperva Security 6/17/11 $75,000,000 $60,500,000 34.0% (17.9%)(NYSE:IMPV)Tripwire, Inc. Security 5/28/10 $86,250,000 $74,006,000 18.6% 13.5%(NASDAQ: TPWR) Software Category Median: $93,125,000 $65,712,000 32.1% 8.6% SaaS CategoryBazaarvoice Social Media 8/26/11 $86,250,000 $64,482,000 66.8% (20.7%)(TBD)BrightCove Video Publishing 8/24/11 $50,000,000 $43,716,000 20.8% (33.7%)(NASDAQ: BCOV)Demandware eCommerce 7/15/11 $100,000,000 $36,690,000 71.5% (7.6%)(NYSE: DWRE)TrustWave Holdings Security 4/21/11 $100,000,000 $111,503,000 52.5% 4.4%(TBD) SaaS Category Median: $93,125,000 $54,099,000 59.7% (14.2%) Internet CategoryZynga Games 7/1/11 $1,000,000,000 $597,500,000 391.9% 65.7%CafePress Retail 6/10/11 $80,000,000 $127,900,000 23.6% 7.8%(TBD)Groupon Services - Local Deals 6/2/11 $750,000,000 $1,313,900,000 1784.8% (24.5%)(TBD)Cloudary Coporation Media 5/24/11 $200,000,000 $60,018,000 201.9% (18.6%)(NYSE:READ)Kayak Software Corporation Travel 11/17/10 $50,000,000 $112,698,000 0.6% 14.4%(TBD) Internet Category Median: $200,000,000 $127,900,000 201.9% 7.8% Total Median: $83,125,000 $93,352,000 28.8% -5.0%Financial data is most recent TTM numbers from S-1 or F-1 .EBITDA margin estimated when not stated explicitly in S-1 or F-116| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & Acquisitions Figure 23: U.S. Mergers & Acquisition Activity 18000 $1,800 16,664 $1,679 $1,550 15000 $1,500 13,610 12,586 $1,273 11,769 12000 11,254 $1,200 $1,290Number of Deals 10,130 Value (BIllions) 9,941 9,296 $1,095 9000 $900 7,762 $904 $877 $748 6000 $600 $550 3000 $300 0 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Capital IQ Deals Value Note: 2011 data is annualizedM&A DEAL VOLUME AND SPENDING: ALL important, buyers loosened their purse stringsINDUSTRY SECTORS over the past year. In 3Q11, acquirers’ spent an aggregate $304 billion on 4,089 transactions, aGlobally, the third quarter’s 12,142 M&A whopping 35% more than 3Q10’s total price tag oftransactions across all industry sectors eclipsed $225 billion. Average deal size also jumped,the previous post recession peak of 11,722 reaching $75 million in 3Q11, up from $67 milliontransactions set in 1Q11. 3Q11’s tally represents in 3Q10.a 23% YoY increase from 3Q10’s 9,872 M&Atransactions, and a 5% gain over 2Q11’s 11,515 There were 622 worldwide leveraged buyouts inM&A transactions. Despite the record number of 3Q11, totaling $20.8 billion, compared to 658worldwide M&A transactions, the total spend of worldwide LBOs worth $32.1 billion in 2Q11, and$606 billion in 3Q11 was 10% lower than 2Q11’s 695 in 1Q11 aggregating $25.5 billion. The$671 billion, and 12% off 1Q11’s post-recession number of U.S. LBOs dropped to 213 in 3Q11peak of $691 billion. from 240 in 2Q11 and 233 in 1Q11. The total spend on U.S. LBOs in the third quarter wasDomestically, 4,089 M&A transactions were $15.3 billion, down from $17.3 billion in 2Q11 butannounced across all industry sectors in the third still considerably greater than the $13.1 billionquarter of 2011 (Figure 23). The 3Q11 U.S. deal total spent in 1Q11. The drop in deal volumetotal was down slightly from 2Q11’s 4,202 suggests PE buyers may be having a difficult timetransactions, but up 21% year over year. finding attractively priced targets in the face ofMirroring the rapid pace of transactions rising valuations. The largest LBO in 3Q11 wasinternationally, domestic M&A transactions are Apax Partners’ $5.8 billion acquisition of Kineticalso heading for record volume this year. In Concepts, at 2.7x TTM revenue, a relatively high1Q11, there were more than 4,000 domestic valuation of for a financial buyer.deals, the highest domestic deal volume we’vereported since we began tracking this metric in2001. The second and third quarters eachexceeded 4,000 transactions, as well. Perhaps as 17| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 24: U.S. Software Merger & Acquisition Activity 500 $23.8 $25 450 431 409 421 428 402 407 405 400 383 $20 372 $17.9 $21.0 345 $17.3 350 330 316 311 Number of Deals 300 $15 Value (BIllions) $13.5 $12.7 $13.1 250 $9.8 200 $10 $6.3 150 $7.6 $4.6 100 $5 $2.9 $3.3 50 0 $0 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Deals ValueSOFTWARE/SAAS M&A DEAL VOLUME AND In 3Q11, HP acquired Autonomy for an enterpriseSPENDING value of $10.3 billion; in 2Q11 Microsoft acquired Skype for an enterprise value of $9.1 billion.To date, there were 405 reported software M&Atransactions in 3Q11, virtually the same as in the Considering the irregular fluctuations in total M&Asecond quarter (409) and third 3Q10 (407) (Figure spend each quarter, YoY comparisons of TTM24). Since M&A data for the quarter is often data are a more reliable measure to discern M&Arevised and released well into the following spending trends. And the trend over the past yearquarter, we anticipate the final deal tally for 3Q11 is encouraging. On a TTM basis, total softwarewill exceed 420, the highest quarterly tally this transaction dollars aggregated $70.6 billion at theyear. M&A deal volume has been above or very close of 3Q11, 49% greater than the $47.4 billionnear its historically healthy level of 400 for six of spent on software M&A deals at the close ofthe past seven quarters, following five 3Q10. Similarly, on a TTM basis, the average dealconsecutive quarters of sub-400 M&A size increased for the sixth consecutive quarter totransactions (4Q08 to 4Q09). In the first three $42 million (Figure 25).quarters of 2011, there have been 1,242 softwareM&A transactions, up 1.7% YoY for the same nine Figure 25: TTM Average M&A Deal Sizemonth period, and 30% higher than the 957 $45.0 $40 $42software deals reported for the first nine months $38 TTM Average Deal Value (Millions) $40.0 $37of 2009. $35.0 $33 $31 $31 $30.0 $28A total of $23.8 billion was spent on 3Q11 $25.0 $22transactions with announced price tags, 13% $20 $20 $20 $20.0 $16higher than 2Q11’s $21.0 billion, and the highest $15.0software M&A spend since 2Q07. Software mega $10.0deals are in large part responsible, as nearly half $5.0of the total spend in each of 3Q11 and 2Q11 $0.0came from transactions greater than $500 million: 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 18| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsIMPORTANT CHANGE IN SOFTWARE AND SAAS Figure 26: Software M&A Deal CurrencyM&A DATA ACCOUNTING 6% 12% 7% 7%Historically, we have aggregated M&A data forboth on-premise and SaaS software company 9% 15% 21% 21%transactions because of the relative dearth ofpure-play SaaS deals. However, the considerablyhigher median valuation of these SaaS deals,though few in number, tended to skew upward themedian M&A multiple. Since SaaS is no longer anascent part of the overall software M&A market 78%and SaaS transactions now constitute a 73% 79% 71%meaningful percentage of total software M&A, webegin this quarter to analyze and separatelyreport M&A data for SaaS and on-premisesoftware deals - except for total deal volume andspending. To ensure our historical and current Q4 2010 Q1 2011 Q2 2011 Q3 2011comparisons are consistent, the historical M&Adata for the prior four quarters referenced in ourcharts this issue have been recalculated to Stock Cash & Stock Cashexclude SaaS M&A transactions. are still actively shopping for acquisitions,SOFTWARE M&A DEAL CURRENCY lingering uncertainty about the economy has made some more circumspect and is putting moreAs in years past, cash-only deals predominated in pressure on valuations.3Q11, comprising 71% of all M&A transactions,down from 76% in 2Q11. By contrast, only 7% of Figure 27: Median Software M&A Valuation as a3Q11’s sellers received only stock, unchanged Multiple of Revenuefrom 2Q11 (Figure 26). The overwhelming 2.5x 2.2xpreference for cash-only as deal currency is a 1.9x 1.9xlongstanding phenomenon that’s attributable to ahost of factors: PE owned private buyers arereluctant to dilute their pre-IPO equity; the seller’sfounders want retirement income manageability, Q4 2010 Q1 2011 Q2 2011 Q3 2011and the seller’s investors are anxious for a realIRR. However, while the percentage of all-cashdeals has fluctuated from quarter to quarter Lest every software entrepreneur who reads this(mostly inversely with public market performance), report multiply his/her company’s TTM revenue byit remains elevated from pre-recession levels 2.2 to determine current fair market value, wewhen it was frequently below 70%. Contributing must emphasize that the 3Q11 median exitto the strong, cash-only preference: continuing multiple for software and SaaS deals is simplymacro-economic uncertainty, record amounts of that - a median – the midpoint of a very broadcash on buyer balance sheets, and market range of exit valuations. Perhaps more useful isvolatility. our calculation that in 3Q11, 44.4% of M&A deals with reported EV/Revenue exit multiples had aSOFTWARE M&A VALUATIONS 2.0x EV/Revenue multiple or less. By contrast,The software industry’s benchmark median exit 13.9% of M&A deals with reported EV/Revenuevaluation fell to 2.2x TTM revenue in 3Q11 from exit multiples had a 5.0x EV/Revenue multiple or2.5x in 2Q11, but remained notably higher than more (Figure 28).the median 1.9x TTM M&A multiple reported for1Q11 and 4Q10 (Figure 27). The 12% drop in Since very few software transactions publiclymedian exit multiple, combined with record identify a private software seller’s TTM EBITDA,software M&A volume, suggests that while buyers we lacked sufficient data to ascertain the median 19| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 28: Software Revenue Multiple by Quarter Figure 30: YTD Median Multiples – Segmentation (Enterprise Value/Revenue) 30.00% 27.8% 25.0% Public Sellers 25.00% 1.8x Median Multiple % of Deals in 3Q11 19.4% 20.00% 24% 15.00% 13.9% 76% 10.00% 8.3% 5.6% 5.00% 0.00% Private Sellers <= 1.0x > 1.0x > 2.0x > 3.0x > 4.0x > 5.0x 2.5x Median Multiple & & & & <= 2.0x <= 3.0x <= 4.0x <= 5.0x Private Buyers 1.9x Median MultipleEBITDA exit multiple paid in 3Q11 for privatesoftware company sellers. We did, however,determine 3Q11’s median exit multiple for public 37%software company sellers was 15.7x TTM 63%EBITDA, a healthy improvement over 2Q11’s14.7x and 1Q11’s 13.9x TTM EBITDA exitmultiples (Figure 29). Public Buyers 2.4x Median MultipleFigure 29: Median Software M&A Valuation as aMultiple of EBITDA Buyer Greater Buyer Less Than Than $200 million $200 million 14.7x 15.7x 2.8x Median 1.8x Median 13.9x 12.4x Multiple Multiple 40% 60% Q4 2010 Q1 2011 Q2 2011 Q3 2011SOFTWARE M&A VALUATIONS BY OWNERSHIP Seller Greater Seller Greater Than $20 Than $20While a variety of factors impact exit valuation, million: 0.8x 2.5x million: 1.5x 1.7xone important driver is the seller’s equity Seller Less Seller Lessstructure. As a result, we analyzed all 2011 year- Than $20 Than $20to-date (YTD) M&A transactions with million: 2.0x 3.7x million: 2.4x 1.8xascertainable revenue multiples to determine howexit valuations varied by type of equity ownership(private vs. public company). targets with lots of cash and recurring revenue, and focused, instead, on private targets that werePublic company sellers received a median 1.8x often venture-backed, growing rapidly and,TTM revenue exit valuation, while privately held consequently, expensive. The latest examplessoftware company sellers commanded a median are Riverbed ’s acquisition of Zeus Technologyof 2.5 x TTM revenue multiple (Figure 30). The ($140 million, 7.5x TTM revenue) andhigher exit multiples paid to private sellers Compuware’s acquisition of dynaTrace softwarecontinued a trend that began about four years ago GmbH ($231 million, 9.9x TTM revenue), both inwhen larger software companies and private Q3. The high multiples paid for Zeus Technologyequity firms virtually exhausted the supply of and dynaTrace, providers of application deliveryhighly leveragable public software company and application performance management software, respectively, demonstrate how 20| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & Acquisitionsexpensive private companies competing in rapidly and highly defensible market positions.growing and transformative software categories Horizontal solution providers accounted for thecan be. remaining 63% of sellers (Figure 31).As a next step, we separated public and private During the third quarter, vertical market sellerssoftware company buyers to ascertain any received a median 2.1x TTM revenue multiple, whiledifference in median purchase price paid in 3Q11. their horizontal market counterparts were paid aHistorically, public buyers have paid higher exit median exit multiple of 2.3x TTM revenue multiple.multiples than private buyers: 2.5x vs. 2.0x TTM The higher horizontal multiple follows threerevenue in 2007; 2.0x vs.1.7x in 2008; 1.9x consecutive quarters of higher median exit multiplesvs.1.2x in 2009; and 2.4x vs.1.8x in 2010. In paid to vertical software company sellers (Figure1Q11 we saw a significant expansion in premiums 32).public companies were paying (3.3x vs. 1.5x),corresponding with a spike in their own public Figure 32: Horizontal vs. Vertical Softwaremarket trading multiples, which continued into M&A Multiples2Q11. The trend moderated somewhat in 3Q11as public valuations declined. In 3Q11, public Horizontal Verticalbuyers paid a median 2.4x TTM revenue multiple, 3Q11 2.3x 2.1xwhile private buyers pad a median 1.9x TTM 2Q11 2.6x 3.2xrevenue multiple. 1Q11 1.7x 1.9xSOFTWARE M&A VALUATIONS BY VERTICAL AND 4Q10 1.5x 2.3xHORIZONTAL MARKETS 3Q10 2.6x 1.7xAnother important determinant of exit valuation isthe seller’s target market focus and related M&A VALUATIONS BY SOFTWARE PRODUCTdomain expertise. We analyzed 3Q11’s median CATEGORYsoftware M&A multiple horizontally and vertically,segregating software company sellers with While a software company’s target market,vertical market solutions (e.g. retail, financial revenue, equity structure and delivery model canservices, telecom, manufacturing, etc.) from demonstrably impact its exit valuation, the naturesellers with horizontal software solutions of it product offering – its software product(infrastructure, enterprise applications, etc.). category - continued to be the single most important M&A valuation driver in 3Q11. For mostFigure 31: 3Q11 Median Multiples software product categories, there is often anSegmentation (Ev/Revenue) insufficient number of transactions each quarter that publicly report both seller TTM revenue and buyer purchase price, essential in determining the 36.6% median exit value for the category. Consequently, we aggregate the data each quarter for each 63.4% category on a TTM basis. As a result, it may take several quarters to detect changing product category valuation trends, as certain outlier transactions consummated nine or twelve months ago may have a residual impact on their product horizontal vertical category multiples. Among the 27 product categories we tracked in 3Q11, nine had both sufficient deal activity andIn 3Q11, providers of vertical software accounted deal data to ascertain a TTM revenue multiplefor 37% of all software M&A, confirming vertical (Figure 33). Software company sellers that wereproviders remain attractive acquisition targets vertically focused on Education garnered theprimarily because of their predictable and highest median TTM revenue multiple in 3Q11substantial recurring revenue, domain expertise, 21| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & Acquisitions(3.6x TTM revenue). The underlying drivers here applications comprise a somewhat complex andare the same as those boosting the market evolving ecosystem, and have become topvaluations of public software companies focused priorities for many public software companyon Education: an emphasis on improving the ROI buyers. Software providers focused on Financialof K-12 education with software tools that Services and Healthcare comprised 11% and 7%,enhance learning and facilitate accountability. respectively, of the third quarter’s transactions. While many software categories in our top fiveQ3’s most notable Education transactions most active come and go, Healthcare, Mobile andincluded Permira Advisers’ acquisition of Financial Services continue to be the mostRenaissance Learning ($476 million, 3.5x TTM acquired in 2011, just as they were in 2010.revenue), and Datatel’s acquisition of SunGard’sHigher Education business ($1.8 billion). Othersoftware product categories with relatively highexit valuation multiples in Q3 were FinancialServices (3.1x) and Healthcare (2.4x).Regular readers of our reports will note a drasticchange in the 3Q11 median TTM exit multiple forthe CRM, Marketing and Sales product category,which plummeted to 1.3x from 4.1x in 2Q11. Thesharp drop occurred after we deleted andseparately reported the median exit multiple forSaaS providers of CRM/Sales/Marketing software(e.g., Salesforce.com) which have enjoyedacceptance and success among both enterpriseand SMB customers at the expense of theirbehind-the firewall counterparts. The fewremaining on-premise CRM software providersare being acquired for customers and cash flow,assets that yield far lower multiples.From a deal activity standpoint, the Mobileproduct category led all others, accounting for18% of 3Q11’s transactions, up from 2Q11’s 14%(Figure 34). Mobile computing and mobileFigure 33: Software M&A by Product Category 3.6x 3.1x 2.4x 2.4x 2.4x 2.3x 1.8x 1.8x 1.3x Security Dev Tool & IT Healthcare Other Verticals Resource Planning Education Compliance CRM, Marketing & Financial Services BI, Risk and Asset Mgmt (A&D, Telco, Retail, etc.) Enterprise Sales 22| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 34: Software M&A by Product Category Billing & Service Provisioning Business Intelligence Retail Insurance 3% 1% 2% Content/Document Mgmt Other Verticals 1% Accounting 11% 1% 4% CRM, Marketing & Sales Software Manufacturing & Asset Mgmt 2% 2% Database & File Mgmt 1% Legal Dev. Tools, IT Asset Mgmt & App. 1% Testing 4% Electronic Commerce 2% Healthcare Electronic Design Automation 7% 1% Engineering, PLM & CAD/CAM Govt / A&D 4% 1% Enterprise Application Integration 2% Enterprise Resource Planning Financial Services 1% 11% Entertainment 2% HR & Workforce Mgmt 3% Messaging, Conferencing & Communications 2% Education 2% Multimedia, Graphics, Digital Media 3% Networking & Connectivity 1% Mobile 18% Security 5% Web Analytics 0.5% Storage & Systems Mgmt Supply Chain Mgmt & Logistics 2% 1%SOFTWARE AS A SERVICE (SAAS) M&A DEAL Figure 35: SaaS M&A Deals as % TotalVOLUME AND VALUATIONS Software M&A Deals SaaS Transactions SaaS as % SoftwareIn 3Q11, 48 SaaS companies were acquired, 60 14.0%compared to 45 in 2Q11 and 39 SaaS SaaS M&A Deals as % of Total Software 12.0%acquisitions in the first quarter. The growing 50 # of SaaS M&A Transactionsnumber of SaaS acquisitions each quarter is 40 10.0%consistent with the results of our 2011 Software M&A Deals 8.0% 30Company Buyer Survey, in which public software 6.0%company corp dev heads indicated SaaS targets 20 4.0%had finally become a priority. As a result, SaaS 10 2.0%company acquisitions accounted for 11.9% of allsoftware industry acquisitions in 3Q11, compared 0 0.0% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11to only 2.6% of all deals just two years ago(Figure 35). include Oracle’s acquisition of InQuira ($230 million, 4.0x TTM revenue); NICE Systems’SaaS exit valuations are also ramping. The acquisition of The Fizzback Group ($80 million,median EV/Revenue exit multiple for SaaS 4.0x TTM revenue); and Augme Technologies’providers in the third quarter was 3.7x, up from acquisition of HipCricket, a SaaS based mobile3.5x in 2Q11. The 3.7x median EV/Revenue exit marketing and advertising platform for $44.5multiple represents a 76% valuation premium over million in cash and stock ($6 million in cash andthe median 2.1x TTM EV/Revenue exit multiple of $38.5 million in common stock), and a $27.5on-premise software companies in Q3 (Figure million earnout (which combined would yield a36). Notable SaaS acquisitions in the quarter 7.7x TTM revenue multiple). Additional details about 3Q11’s SaaS M&A transactions can be found in Appendix E. 23| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsFigure 36: Median SaaS M&A Valuation as a M&A deals in the same quarter. SaaS providersMultiple of Revenue focused on Education represented 10% of all 3.7x SaaS transactions in Q3, while those in the SaaS Messaging and Legal vertical categories 3.5x 3.4x accounted for 6% each. 3.2x INTERNET M&A DEAL VOLUME AND VALUATIONS Internet M&A activity increased again in Q3 for 4Q10 1Q11 2Q11 3Q11 the fifth consecutive quarter. There were 216 Internet companies acquired in 3Q11, a 9%The CRM, Marketing and Sales product category increase over the prior quarter, and a whoppingaccounted for 17% of all SaaS transactions in 55% jump YoY (Figure 38). By comparison, on-3Q11 (Figure 37). By contrast, on-premise premise software M&A volume in the third quarterCRM/Sales/Marketing software companies dropped 1% YoY. Internet M&A transactions nowconstituted only 2% of all on-premise software comprise nearly half the number of on-premiseM&A transactions in 3Q11. The attractiveness of software M&A deals, compared to only one thirdSaaS CRM to larger software companies is simply in 3Q10.a reflection of how popular SaaS CRM hasbecome with enterprise customers. By far, the most active Internet M&A category was Ad Tech, with 62 transactions in the third quarter,The HR and workforce management category, signaling consolidation in this space is now wellwhich has also moved mostly to the SaaS model, underway. On a YoY basis, Ad-Tech M&A dealaccounted for 13% of all SaaS transactions in volume has mushroomed a remarkable 182%3Q11, while on-premise HR/WFM providers Figure 38). Notable transactions in this productcomprised only 3% of all on-premise software Figure 37: SaaS M&A by Product Category Insurance Accounting Other Verticals Billing & Service Manufacturing & Asset 2% 4% 8% Provisioning Mgmt 4% 2% Legal BI Risk & Compliance 6% 2% Healthcare 2% CRM, Marketing & Sales Software Financial Services 17% 4% Dev. Tools, IT Asset Education Mgmt & App. Testing 10% 4% Mobile Electronic Commerce 4% 2% HR & Workforce Mgmt Supply Chain Mgmt & 13% Logistics Messaging, 2% Multimedia, Graphics, Conferencing & Security Digital Media 4% Communications 2% 6% 24| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & Acquisitions Figure 38: Internet Deal Volume By Category Category Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Total Social Tech. 35 25 36 23 14 133 Ad Tech & Svcs 62 34 33 21 22 172 eCommerce 36 56 32 29 22 175 Content 29 29 26 34 26 144 Video/Photos 12 5 18 12 15 62 Infrastructure 21 19 16 17 14 87 Gaming 6 15 7 6 10 44 Search 5 8 6 12 6 37 Communications 6 6 1 1 4 18 Music 4 2 1 2 6 15 Total 216 199 176 157 139 887category include ValueClick’s acquisition of of the close of Q3, the E-commerce categoryDotomi ($278.2 million); Demand Media’s registered 153 M&A transactions on a TTM basis,acquisition of IndieClick Media Group ($14 the highest among the ten Internet categories wemillion); Google’s acquisition of Daily Deal GmbH; track (Figure 38).comScore’s acquisition of AdXpose ($19.4million); and Local.com’s acquisition of Screaming The Social Technologies Internet category talliedMedia Group ($32.7 million, 13.8x TTM revenue). 35 acquisitions in the third quarter, following 25Local.com, faced with slow growth in 1H11 due to deals in Q2 and 36 in Q1. Especially notable wasdifficulties generating revenue from its 20 million Glam Media’s acquisition of Ning ($150 millionvisitors, paid a premium to enter the lucrative but estimate), a social networking platform thathighly competitive daily deals space. Digital ad enabled consumers to quickly create social mediaagencies, seeking to supplement creative groups around any area of common interest.services with technology enabled services, were Glam Media serves as a platform for 2,500active buyers of Ad-Tech Internet companies in publishers who were clamoring for closer socialthe third quarter: VivaKi acquired Big Fuel contact with readers. Another notable SocialCommunications; WPP Digital acquired Rockfish Tech seeking to marry social media with contentInteractive; and iCrossing acquired Wallaby was KIT Digital’s acquisition of KickApps in 1Q11.Group. Have valuations kept pace with escalating Internet deal volume? The median Internet TTM Figure 39: 3Q11 Internet M&A by Category EV/Revenue exit valuation was 2.6x in 3Q11, 2.8% 2.8% marking the fourth consecutive quarterly increase 16.7% 13.4% in exit multiple, and a remarkable comeback from e‐Commerce 4Q10’s lackluster 1.6x median valuation (Figure 2.3% Search 40). The increase is in part attributable to greater infrastructure demand as reflected in the growing number of5.6% Ad‐Tech & Services Internet transactions, and in part due to the Music growing financial strength of public Internet 9.7% Social Tech Video/Photos companies that have prospered, diversified, and Content amassed significant cash reserves. 16.2% Communications Figure 40: Median Internet M&A Valuation as Gaming a Multiple of Revenue 1.9% 28.7% 2.6x 2.0x 1.8x 1.6xThe E-commerce Internet category accounted for36 M&A transactions in Q3, the second highestamong all Internet categories, but 35% lower thanthe 56 transactions reported the prior quarter. As 4Q10 1Q11 2Q11 3Q11 25| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX A: 3Q11 PUBLIC SOFTWARE MARKET VALUATIONS AND STATISTICS BY PRODUCT CATEGORY Billing & Service Managem ent 3Q10 4Q10 1Q11 2Q11 3Q11 Education & eLearning 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 1.7x 1.8x 1.9x 1.9x 1.3x EV/Revenue 2.0x 2.3x 2.3x 2.4x 3.0xEV/EBITDA 9.7x 10.5x 8.7x 8.0x 5.8x EV/EBITDA 7.5x 9.9x 15.6x 12.5x 11.8xEV/Earnings 14.7x 17.0x 18.8x 18.5x 9.0x EV/Earnings 12.5x 13.3x 13.4x 14.6x 40.7xGross Profit Margin 53.6% 47.0% 44.0% 39.9% 51.2% Gross Profit Margin 86.8% 84.3% 77.4% 76.6% 82.3%EBITDA Margin 22.5% 21.9% 22.7% 22.4% 20.4% EBITDA Margin 26.7% 26.2% 28.2% 26.9% 29.1%Net Income Margin 14.1% 14.0% 12.4% 11.3% 14.7% Net Income Margin 9.7% 10.0% 10.1% 10.3% 6.3%TTM Revenue Grow th (YoY) 6.0% 10.3% 11.4% 13.1% 18.5% TTM Revenue Grow th (YoY) 15.6% 9.4% 7.1% 5.2% 6.8%TTM EBITDA Grow th (YoY) 6.4% 2.4% 12.5% 18.1% 7.7% TTM EBITDA Grow th (YoY) 4.4% 7.9% 8.6% 11.8% 16.3%TTM Earnings Grow th (YoY) -5.4% 44.0% 0.9% -0.5% -5.0% TTM Earnings Grow th (YoY) -70.0% 0.6% 164.0% -10.7% -6.5%Current Ratio 2.7 2.4 2.4 2.4 2.8 Current Ratio 1.2 1.2 0.9 1.0 1.0Cash as Percent of Market Cap 16.3% 22.9% 21.8% 20.9% 23.6% Cash as Percent of Market Cap 18.6% 12.6% 12.8% 14.9% 15.1%Enterprise Value Grow th (YoY) 33.5% 17.4% 15.1% 22.0% 5.0% Enterprise Value Grow th (YoY) -10.2% 2.8% -26.8% -19.6% -14.4% Business Intelligence 3Q10 4Q10 1Q11 2Q11 3Q11 Electronic Design Autom ation 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 2.6x 3.1x 3.7x 4.2x 3.9x EV/Revenue 1.4x 1.6x 2.1x 2.2x 1.6xEV/EBITDA 24.6x 29.4x 40.3x 46.2x 33.7x EV/EBITDA 17.8x 20.4x 20.8x 20.5x 14.6xEV/Earnings 56.0x 75.1x 80.1x 103.2x 144.7x EV/Earnings 12.2x 9.7x 11.2x 11.0x 15.8xGross Profit Margin 81.9% 77.6% 72.6% 68.7% 79.2% Gross Profit Margin 82.0% 80.7% 77.9% 74.9% 81.5%EBITDA Margin 15.4% 15.5% 12.8% 10.0% 9.2% EBITDA Margin 8.1% 6.9% 8.2% 10.3% 10.4%Net Income Margin 7.6% 7.1% 6.7% 6.3% 3.6% Net Income Margin -1.8% -1.7% -1.7% -1.6% -0.1%TTM Revenue Grow th (YoY) -13.1% -6.0% -3.6% 0.4% 7.1% TTM Revenue Grow th (YoY) -1.1% 4.5% 9.2% 13.2% 12.0%TTM EBITDA Grow th (YoY) -13.1% -6.0% -3.6% 0.4% 7.1% TTM EBITDA Grow th (YoY) 69.4% 127.9% 96.0% 129.0% 110.9%TTM Earnings Grow th (YoY) 47.8% 42.6% 38.2% 76.4% -5.4% TTM Earnings Grow th (YoY) -101.7% -316.9% -146.3% -229.5% -144.7%Current Ratio 1.6 1.8 1.8 2.2 2.0 Current Ratio 1.4 1.4 1.5 1.5 1.6Cash as Percent of Market Cap 17.3% 17.6% 14.9% 11.4% 12.4% Cash as Percent of Market Cap 28.5% 19.2% 20.3% 15.0% 15.6%Enterprise Value Grow th (YoY) 1.7% 22.1% 16.4% 84.7% 56.9% Enterprise Value Grow th (YoY) 68.4% 25.8% 69.3% 43.5% 19.5% Content & Docum ent Managem ent 3Q10 4Q10 1Q11 2Q11 3Q11 Engineering, PLM & CAD/CAM Softw are 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 2.5x 2.7x 3.2x 3.4x 2.6x EV/Revenue 3.0x 3.7x 3.9x 3.7x 2.6xEV/EBITDA 10.0x 9.7x 11.1x 11.5x 9.8x EV/EBITDA 15.5x 16.5x 19.2x 16.4x 12.8xEV/Earnings 25.8x 27.0x 31.1x 31.9x 18.1x EV/Earnings 29.5x 35.6x 40.1x 40.4x 23.0xGross Profit Margin 73.2% 72.0% 62.6% 59.3% 69.5% Gross Profit Margin 82.1% 70.8% 67.2% 65.4% 85.3%EBITDA Margin 26.9% 27.8% 28.1% 27.4% 26.6% EBITDA Margin 18.5% 19.8% 19.9% 20.2% 20.3%Net Income Margin 13.9% 13.4% 13.0% 12.0% 14.8% Net Income Margin 5.4% 5.3% 5.3% 5.1% 12.1%TTM Revenue Grow th (YoY) 12.1% 14.5% 19.5% 16.5% 14.0% TTM Revenue Grow th (YoY) -0.3% 10.1% 13.9% 12.2% 14.2%TTM EBITDA Grow th (YoY) 15.0% 23.8% 36.6% 29.1% 14.4% TTM EBITDA Grow th (YoY) 26.0% 17.1% 5.9% 19.3% 25.3%TTM Earnings Grow th (YoY) -14.6% -39.5% -47.9% -38.9% -35.4% TTM Earnings Grow th (YoY) -21.9% -17.7% -30.9% -35.0% -22.0%Current Ratio 1.7 1.7 1.3 1.2 1.2 Current Ratio 2.0 2.0 2.2 2.2 2.2Cash as Percent of Market Cap 16.1% 15.7% 13.6% 10.3% 10.1% Cash as Percent of Market Cap 14.6% 13.0% 11.2% 12.7% 18.9%Enterprise Value Grow th (YoY) 9.7% 10.5% 17.8% 34.9% 23.7% Enterprise Value Grow th (YoY) 39.4% 41.4% 41.2% 38.8% 16.1% Data Managem ent & Integration 3Q10 4Q10 1Q11 2Q11 3Q11 Enterprise Resource Planning 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 2.3x 2.9x 3.3x 3.3x 2.9x EV/Revenue 1.9x 2.4x 2.5x 2.4x 2.1xEV/EBITDA 9.9x 11.0x 16.0x 14.3x 13.3x EV/EBITDA 9.9x 8.8x 9.2x 9.6x 8.4xEV/Earnings 18.3x 21.8x 24.4x 25.4x 23.4x EV/Earnings 21.6x 23.6x 24.8x 24.6x 18.9xGross Profit Margin 75.6% 70.2% 66.6% 63.4% 75.1% Gross Profit Margin 66.9% 56.4% 55.3% 53.9% 57.3%EBITDA Margin 22.5% 22.9% 23.0% 23.2% 23.4% EBITDA Margin 18.5% 21.8% 21.5% 20.5% 6.3%Net Income Margin 11.3% 10.6% 10.0% 9.5% 12.9% Net Income Margin 8.2% 6.4% 6.3% 6.2% 10.4%TTM Revenue Grow th (YoY) 8.0% 15.4% 22.3% 24.9% 20.9% TTM Revenue Grow th (YoY) 2.0% 2.3% 4.2% 5.8% 2.1%TTM EBITDA Grow th (YoY) 16.6% 25.5% 27.7% 26.2% 26.0% TTM EBITDA Grow th (YoY) 6.4% 5.8% 7.6% 0.9% -4.3%TTM Earnings Grow th (YoY) -11.2% -14.9% -15.6% -11.6% -16.3% TTM Earnings Grow th (YoY) -0.2% -1.5% -2.8% 11.0% 8.3%Current Ratio 1.5 1.4 1.5 2.0 1.9 Current Ratio 1.5 1.9 1.8 1.8 1.7Cash as Percent of Market Cap 14.6% 15.3% 13.2% 12.0% 13.4% Cash as Percent of Market Cap 14.7% 20.5% 18.1% 17.6% 15.0%Enterprise Value Grow th (YoY) 33.0% 37.0% 46.2% 59.1% 57.9% Enterprise Value Grow th (YoY) 10.7% 6.0% 13.5% 22.7% 17.5% Developm ent Tools & Open Source 3Q10 4Q10 1Q11 2Q11 3Q11 Financial Services Softw are 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 2.4x 2.8x 3.0x 2.7x 2.2x EV/Revenue 2.0x 2.1x 2.1x 2.4x 2.0xEV/EBITDA 8.6x 9.9x 11.4x 10.3x 6.8x EV/EBITDA 8.5x 8.8x 9.2x 9.6x 8.4xEV/Earnings 20.7x 25.2x 29.3x 29.4x 12.3x EV/Earnings 22.3x 23.6x 24.8x 24.6x 18.9xGross Profit Margin 78.5% 73.2% 70.3% 67.4% 77.5% Gross Profit Margin 56.4% 54.5% 55.2% 53.6% 54.7%EBITDA Margin 23.9% 24.7% 25.2% 25.3% 24.7% EBITDA Margin 23.1% 23.3% 23.1% 23.1% 24.0%Net Income Margin 11.2% 10.3% 9.4% 8.8% 12.7% Net Income Margin 6.3% 6.5% 6.7% 6.5% 10.7%TTM Revenue Grow th (YoY) 16.5% 26.8% 36.8% 28.6% 25.0% TTM Revenue Grow th (YoY) -0.4% 1.5% 3.4% 5.8% 2.1%TTM EBITDA Grow th (YoY) 25.4% 38.4% 43.6% 39.0% 30.2% TTM EBITDA Grow th (YoY) 6.1% 7.3% 10.9% 3.0% 1.4%TTM Earnings Grow th (YoY) -3.6% -33.3% -46.3% -37.7% -38.4% TTM Earnings Grow th (YoY) -10.8% -4.0% -7.0% 8.5% 6.0%Current Ratio 2.2 2.4 2.7 2.8 2.7 Current Ratio 1.8 1.8 1.8 1.9 1.7Cash as Percent of Market Cap 19.1% 19.2% 18.4% 17.3% 22.4% Cash as Percent of Market Cap 13.1% 18.1% 17.1% 17.5% 14.6%Enterprise Value Grow th (YoY) 24.2% 67.8% 58.8% 46.4% 20.1% Enterprise Value Grow th (YoY) -3.1% 4.8% 13.3% 13.2% 31.3% 26| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX A: 3Q11 PUBLIC SOFTWARE MARKET VALUATIONS AND STATISTICS BY PRODUCT CATEGORY Healthcare 3Q10 4Q10 1Q11 2Q11 3Q11 Security 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 3.4x 3.5x 3.7x 3.8x 3.2x EV/Revenue 2.4x 2.5x 2.4x 2.9x 2.2xEV/EBITDA 16.0x 15.9x 17.5x 18.7x 17.4x EV/EBITDA 12.9x 14.0x 13.8x 13.9x 11.0xEV/Earnings 34.7x 38.6x 41.4x 45.6x 37.4x EV/Earnings 14.0x 18.3x 19.0x 17.8x 17.6xGross Profit Margin 65.7% 57.7% 53.5% 51.7% 64.2% Gross Profit Margin 83.7% 80.2% 76.7% 78.3% 82.5%EBITDA Margin 21.9% 22.3% 22.8% 23.3% 24.3% EBITDA Margin 21.0% 22.5% 21.4% 22.1% 20.9%Net Income Margin 8.9% 8.1% 6.6% 5.8% 4.6% Net Income Margin 14.8% 14.4% 14.1% 14.1% 9.9%TTM Revenue Grow th (YoY) 15.4% 17.6% 19.9% 20.8% 23.9% TTM Revenue Grow th (YoY) 6.7% 8.9% 6.1% 12.3% 12.8%TTM EBITDA Grow th (YoY) 7.8% 13.5% 27.9% 35.7% 34.1% TTM EBITDA Grow th (YoY) 6.0% 15.7% 21.0% 19.0% 11.9%TTM Earnings Grow th (YoY) -5.7% 1.8% -8.5% -18.1% -20.7% TTM Earnings Grow th (YoY) -54.2% -38.3% -37.2% -30.1% -25.5%Current Ratio 2.2 2.3 2.3 2.4 2.5 Current Ratio 2.2 2.4 2.4 2.5 2.5Cash as Percent of Market Cap 7.0% 8.5% 8.4% 8.5% 7.5% Cash as Percent of Market Cap 20.7% 20.1% 19.9% 18.8% 19.0%Enterprise Value Grow th (YoY) 15.5% 29.6% 39.5% 43.7% 57.0% Enterprise Value Grow th (YoY) 7.3% 7.6% -0.4% 10.9% 14.0% IT Conglom erates 3Q10 4Q10 1Q11 2Q11 3Q11 Storage & System s Managem ent 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 2.5x 2.1x 2.1x 2.2x 2.1x EV/Revenue 2.4x 2.7x 3.1x 2.9x 2.1xEV/EBITDA 7.3x 7.7x 7.1x 5.9x 6.0x EV/EBITDA 9.5x 12.0x 12.1x 11.8x 9.3xEV/Earnings 12.6x 12.0x 12.7x 11.2x 9.1x EV/Earnings 19.4x 24.8x 25.8x 24.4x 16.9xGross Profit Margin 64.0% 61.4% 60.5% 59.8% 61.8% Gross Profit Margin 78.0% 76.4% 73.8% 72.2% 77.3%EBITDA Margin 28.0% 27.7% 26.1% 26.0% 25.8% EBITDA Margin 22.8% 22.6% 21.7% 21.8% 23.1%Net Income Margin 19.4% 18.6% 18.3% 17.9% 15.0% Net Income Margin 11.8% 11.5% 11.3% 11.0% 12.2%TTM Revenue Grow th (YoY) 6.9% 16.8% 13.6% 13.6% 7.9% TTM Revenue Grow th (YoY) 2.0% 6.1% 10.3% 11.9% 10.8%TTM EBITDA Grow th (YoY) 16.9% 26.1% 25.1% 17.1% 6.8% TTM EBITDA Grow th (YoY) 9.3% 12.0% 6.2% 23.8% 29.1%TTM Earnings Grow th (YoY) -8.5% -12.6% -11.6% -14.4% -7.9% TTM Earnings Grow th (YoY) -14.2% -31.1% -23.3% -24.3% -19.8%Current Ratio 2.1 2.3 2.5 2.8 2.6 Current Ratio 1.5 1.6 1.6 1.5 1.4Cash as Percent of Market Cap 15.0% 16.2% 14.5% 15.6% 21.4% Cash as Percent of Market Cap 16.4% 15.3% 14.5% 11.8% 15.9%Enterprise Value Grow th (YoY) 1.8% -13.4% -11.3% -17.4% -1.2% Enterprise Value Grow th (YoY) 21.6% 31.6% 44.8% 35.2% 13.3% Mobile Solutions/Content 3Q10 4Q10 1Q11 2Q11 3Q11 Supply Chain Managem ent & Logistics 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 2.4x 3.0x 2.7x 2.7x 2.1x EV/Revenue 1.5x 1.8x 1.8x 2.0x 1.7xEV/EBITDA 10.4x 13.3x 22.2x 16.6x 15.6x EV/EBITDA 9.3x 10.8x 10.8x 11.5x 10.7xEV/Earnings 38.6x 52.6x 32.1x 25.9x 27.0x EV/Earnings 22.3x 26.4x 26.0x 25.9x 19.7xGross Profit Margin 63.1% 62.4% 58.8% 55.0% 65.5% Gross Profit Margin 56.7% 54.5% 53.0% 50.8% 55.4%EBITDA Margin 19.4% 13.7% 15.2% 11.9% 9.3% EBITDA Margin 11.2% 11.2% 11.0% 11.1% 9.9%Net Income Margin 2.1% 2.1% 2.3% 2.1% -1.6% Net Income Margin 4.7% 4.1% 3.9% 3.6% 6.7%TTM Revenue Grow th (YoY) 15.4% 10.1% 17.3% 17.7% 16.4% TTM Revenue Grow th (YoY) -1.8% 5.4% 6.5% 11.6% 14.4%TTM EBITDA Grow th (YoY) 15.1% 26.1% 20.1% -3.0% -1.9% TTM EBITDA Grow th (YoY) 5.2% 2.4% 6.3% 2.1% 16.3%TTM Earnings Grow th (YoY) -68.2% -32.6% -20.6% -18.2% -34.1% TTM Earnings Grow th (YoY) -52.1% -43.6% -38.2% -12.8% -40.5%Current Ratio 2.5 3.0 3.2 3.1 2.7 Current Ratio 2.0 2.0 2.2 2.1 2.1Cash as Percent of Market Cap 20.1% 18.0% 14.1% 13.5% 18.9% Cash as Percent of Market Cap 23.3% 19.5% 18.9% 19.3% 21.8%Enterprise Value Grow th (YoY) -10.0% 20.4% 28.7% 17.7% 7.2% Enterprise Value Grow th (YoY) 29.1% 15.6% 23.2% 15.0% 6.2% Multim edia, Graphics, Digital Media 3Q10 4Q10 1Q11 2Q11 3Q11 Vertical - Finance 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 3.4x 3.6x 4.0x 3.9x 2.8x EV/Revenue 4.4x 4.6x 4.9x 4.4x 3.6xEV/EBITDA 11.3x 17.1x 25.2x 26.5x 17.9x EV/EBITDA 11.6x 12.9x 13.6x 13.3x 11.1xEV/Earnings 26.8x 29.2x 34.0x 35.9x 23.4x EV/Earnings 37.8x 39.9x 43.6x 40.4x 34.0xGross Profit Margin 67.6% 70.3% 78.6% 77.9% 66.7% Gross Profit Margin 54.1% 51.9% 50.1% 48.8% 52.4%EBITDA Margin 21.7% 21.3% 20.6% 20.1% 21.1% EBITDA Margin 30.8% 31.0% 31.3% 31.6% 31.7%Net Income Margin 11.5% 11.8% 11.3% 11.5% 3.6% Net Income Margin 11.9% 11.5% 11.2% 10.8% 12.0%TTM Revenue Grow th (YoY) 5.7% 6.3% 12.7% 15.0% 14.7% TTM Revenue Grow th (YoY) 12.2% 19.4% 20.5% 18.1% 15.6%TTM EBITDA Grow th (YoY) 13.0% 20.3% 17.6% 23.9% 30.6% TTM EBITDA Grow th (YoY) 30.6% 39.8% 26.0% 17.2% 14.1%TTM Earnings Grow th (YoY) -17.2% -50.1% -59.5% -64.3% -48.9% TTM Earnings Grow th (YoY) -23.7% -12.5% -20.4% -24.5% -15.8%Current Ratio 2.4 2.3 2.3 2.4 2.7 Current Ratio 1.1 1.1 1.2 1.2 1.1Cash as Percent of Market Cap 16.6% 13.4% 11.2% 10.8% 11.9% Cash as Percent of Market Cap 7.8% 7.5% 6.9% 5.5% 6.4%Enterprise Value Grow th (YoY) 13.3% 19.9% 23.5% 22.4% -4.8% Enterprise Value Grow th (YoY) 25.8% 34.1% 39.3% 27.5% 17.1% Netw orking & Netw ork Perf Mgm t 3Q10 4Q10 1Q11 2Q11 3Q11 Vertical - Other 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 2.5x 3.1x 4.3x 4.8x 3.8x EV/Revenue 2.0x 2.7x 2.8x 3.1x 2.9xEV/EBITDA 15.3x 18.8x 28.0x 24.7x 18.6x EV/EBITDA 12.3x 14.2x 14.3x 14.0x 11.9xEV/Earnings 28.4x 40.8x 53.1x 53.9x 28.3x EV/Earnings 28.1x 31.8x 32.1x 34.7x 19.1xGross Profit Margin 78.3% 74.0% 70.8% 67.6% 79.7% Gross Profit Margin 49.6% 49.0% 48.5% 47.6% 56.3%EBITDA Margin 23.4% 22.8% 23.1% 24.7% 22.6% EBITDA Margin 18.3% 18.1% 18.4% 18.8% 18.6%Net Income Margin 11.1% 10.7% 10.5% 10.3% 11.3% Net Income Margin 9.2% 9.1% 9.0% 8.8% 10.7%TTM Revenue Grow th (YoY) 23.7% 31.5% 30.9% 23.2% 21.2% TTM Revenue Grow th (YoY) 8.7% 8.4% 12.5% 12.4% 15.5%TTM EBITDA Grow th (YoY) 37.5% 58.7% 35.5% 26.3% 30.2% TTM EBITDA Grow th (YoY) 13.4% 17.4% 16.0% 23.0% 25.2%TTM Earnings Grow th (YoY) -20.5% -33.1% -41.7% -43.2% -40.9% TTM Earnings Grow th (YoY) -19.2% -23.8% -23.4% -22.2% -24.0%Current Ratio 2.2 2.2 2.6 2.5 2.5 Current Ratio 1.1 1.1 1.2 1.3 1.4Cash as Percent of Market Cap 16.9% 17.0% 15.2% 12.7% 15.3% Cash as Percent of Market Cap 6.0% 5.8% 5.4% 5.8% 7.0%Enterprise Value Grow th (YoY) 55.4% 159.4% 118.8% 58.0% 36.9% Enterprise Value Grow th (YoY) 20.5% 27.6% 46.8% 45.7% 28.6% 27| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX A: 3Q11 PUBLIC SOFTWARE MARKET VALUATIONS AND STATISTICS BY PRODUCT CATEGORY Video Gam es 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 0.6x 0.7x 0.9x 1.0x 1.1xEV/EBITDA 12.0x 10.5x 8.3x 10.9x 8.3xEV/Earnings 22.8x 24.8x 23.3x 23.1x 18.9xGross Profit Margin 40.7% 42.8% 41.9% 43.1% 48.9%EBITDA Margin 2.4% 5.9% 9.3% 9.3% 8.7%Net Income Margin -3.8% -4.0% -3.4% -3.1% 3.6%TTM Revenue Grow th (YoY) -8.8% -5.8% -1.6% -1.0% 0.1%TTM EBITDA Grow th (YoY) 64.7% 98.0% 141.6% 173.7% 94.1%TTM Earnings Grow th (YoY) -31.1% -251.4% -253.6% -231.0% -111.1%Current Ratio 2.6 2.2 2.3 2.3 2.6Cash as Percent of Market Cap 31.4% 29.6% 24.9% 22.4% 22.0%Enterprise Value Grow th (YoY) -17.5% -3.1% 15.5% 25.6% 48.3% Workforce & Service Managem ent 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 1.9x 2.2x 2.7x 2.7x 2.2xEV/EBITDA 16.2x 20.0x 17.3x 17.1x 13.6xEV/Earnings 36.2x 43.5x 46.7x 49.8x 30.5xGross Profit Margin 63.6% 62.8% 61.6% 60.1% 62.6%EBITDA Margin 10.8% 11.8% 15.5% 16.1% 16.2%Net Income Margin 0.0% 0.0% 0.0% 0.0% 5.5%TTM Revenue Grow th (YoY) 4.4% 7.7% 10.6% 6.5% 10.3%TTM EBITDA Grow th (YoY) 12.2% 7.6% 1.5% 8.9% 31.6%TTM Earnings Grow th (YoY) 1.6% -41.0% -24.7% -26.6% -17.8%Current Ratio 1.2 1.2 1.3 1.2 1.4Cash as Percent of Market Cap 23.2% 19.4% 15.5% 15.6% 17.3%Enterprise Value Grow th (YoY) 28.5% 42.0% 54.0% 64.2% 52.4% 28| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX B: 3Q11 PUBLIC INTERNET MARKET VALUATIONS AND STATISTICS BY PRODUCT CATEGORY Ad Tech & Lead Generation 3Q10 4Q10 1Q11 2Q11 3Q11 Search 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 1.4x 2.3x 2.7x 2.3x 1.9x EV/Revenue 1.1x 1.3x 1.4x 1.5x 1.4xEV/EBITDA 24.9x 18.8x 14.5x 11.2x 13.0x EV/EBITDA 8.5x 8.9x 9.6x 10.0x 11.2xEV/Earnings 24.1x 29.6x 37.3x 30.3x 15.3x EV/Earnings 17.0x 21.8x 22.5x 37.0x 15.2xGross Profit Margin 45.1% 42.9% 40.9% 41.8% 43.7% Gross Profit Margin 63.6% 60.5% 52.4% 44.6% 62.6%EBITDA Margin 13.0% 10.3% 9.1% 10.1% 10.5% EBITDA Margin 10.4% 12.5% 12.1% 11.3% 12.2%Net Income Margin 2.5% 2.3% 2.0% 1.9% 1.1% Net Income Margin 4.9% 4.8% 5.0% 5.0% 9.1%TTM Revenue Grow th (YoY) 15.8% 21.3% 23.0% 26.5% 24.1% TTM Revenue Grow th (YoY) 15.9% 21.5% 24.0% 24.6% 26.1%TTM EBITDA Grow th (YoY) 13.4% 23.2% 40.4% 30.7% 32.0% TTM EBITDA Grow th (YoY) 40.3% 47.1% 22.0% 22.5% 30.7%TTM Earnings Grow th (YoY) -244.5% -16.1% -5.1% -21.3% -22.2% TTM Earnings Grow th (YoY) -45.3% -46.6% -38.3% -20.6% -16.6%Current Ratio 3.4 3.0 2.9 3.1 2.5 Current Ratio 3.8 3.6 4.0 3.9 3.7Cash as Percent of Market Cap 17.6% 15.7% 12.2% 10.1% 11.1% Cash as Percent of Market Cap 27.3% 28.3% 25.6% 23.0% 22.0%Enterprise Value Grow th (YoY) 7.1% 42.3% 35.4% 73.2% 5.7% Enterprise Value Grow th (YoY) 1.1% 1.6% 7.3% 56.4% 43.7% Infrastructure 3Q10 4Q10 1Q11 2Q11 3Q11 Services 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 1.7x 2.9x 3.2x 2.8x 2.8x EV/Revenue 2.0x 2.4x 3.0x 6.1x 5.2xEV/EBITDA 12.4x 16.4x 19.1x 19.2x 11.8x EV/EBITDA 12.9x 14.6x 16.5x 22.0x 30.1xEV/Earnings 24.9x 40.2x 47.4x 38.7x 23.5x EV/Earnings 24.1x 25.6x 28.6x 56.7x 36.2xGross Profit Margin 67.6% 66.2% 60.5% 56.2% 67.6% Gross Profit Margin 74.4% 71.5% 58.5% 49.6% 79.4%EBITDA Margin 15.5% 13.2% 13.1% 14.5% 16.2% EBITDA Margin 15.4% 16.6% 18.0% 17.0% 16.8%Net Income Margin 5.4% 5.1% 4.8% 4.5% 5.6% Net Income Margin 5.2% 6.8% 3.3% 2.6% 4.7%TTM Revenue Grow th (YoY) 12.1% 21.3% 12.7% 11.2% 19.1% TTM Revenue Grow th (YoY) 21.7% 22.2% 33.8% 20.5% 21.9%TTM EBITDA Grow th (YoY) 12.1% 21.3% 12.7% 11.2% 19.1% TTM EBITDA Grow th (YoY) 0.0% 13.4% 28.9% 19.8% 32.2%TTM Earnings Grow th (YoY) -7.8% -14.8% -19.9% -20.4% -26.2% TTM Earnings Grow th (YoY) -27.5% -42.2% -20.2% -9.0% -15.2%Current Ratio 2.1 2.0 2.1 2.1 2.2 Current Ratio 3.0 3.0 2.3 2.4 3.1Cash as Percent of Market Cap 20.6% 16.1% 13.2% 10.6% 14.1% Cash as Percent of Market Cap 21.7% 16.7% 12.3% 9.4% 9.5%Enterprise Value Grow th (YoY) 28.3% 39.8% 61.2% 85.1% 27.7% Enterprise Value Grow th (YoY) 26.6% 36.9% 43.6% 59.4% 74.0% Media 3Q10 4Q10 1Q11 2Q11 3Q11 Travel 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 1.5x 2.8x 3.0x 3.6x 2.7x EV/Revenue 3.7x 5.8x 6.5x 7.3x 5.0xEV/EBITDA 11.6x 14.4x 14.1x 13.1x 10.8x EV/EBITDA 12.3x 24.8x 26.3x 32.5x 23.4xEV/Earnings 19.1x 21.8x 22.0x 19.6x 15.7x EV/Earnings 22.6x 42.2x 40.9x 50.1x 34.5xGross Profit Margin 45.5% 46.3% 50.8% 53.3% 51.3% Gross Profit Margin 79.3% 76.0% 62.8% 58.7% 79.6%EBITDA Margin 14.7% 14.8% 14.9% 15.3% 15.2% EBITDA Margin 19.3% 20.5% 22.6% 24.0% 23.8%Net Income Margin -0.7% -0.6% -0.6% -0.6% 4.1% Net Income Margin 10.3% 10.0% 9.5% 8.9% 3.3%TTM Revenue Grow th (YoY) 16.3% 10.9% 21.9% 19.4% 16.3% TTM Revenue Grow th (YoY) 22.7% 25.9% 20.0% 28.2% 25.7%TTM EBITDA Grow th (YoY) 1.0% 14.9% 17.2% 22.5% 25.5% TTM EBITDA Grow th (YoY) 21.7% 40.4% 29.2% 37.1% 45.5%TTM Earnings Grow th (YoY) -37.9% -23.3% -16.9% -24.8% -17.8% TTM Earnings Grow th (YoY) -101.9% -39.3% -10.4% -10.8% 2.8%Current Ratio 2.0 2.3 2.2 3.1 2.6 Current Ratio 1.4 2.4 2.4 1.6 2.0Cash as Percent of Market Cap 21.7% 22.5% 18.9% 21.6% 20.9% Cash as Percent of Market Cap 12.0% 9.2% 8.8% 8.5% 10.4%Enterprise Value Grow th (YoY) -9.1% 1.6% 26.2% 4.9% -7.8% Enterprise Value Grow th (YoY) 35.8% 43.2% 12.5% 14.6% 6.1% Retail 3Q10 4Q10 1Q11 2Q11 3Q11 Video Gam es 3Q10 4Q10 1Q11 2Q11 3Q11EV/Revenue 1.3x 2.1x 1.8x 1.7x 1.4x EV/Revenue 4.2x 4.2x 4.3x 4.8x 4.6xEV/EBITDA 10.6x 22.4x 12.7x 12.6x 13.9x EV/EBITDA 6.2x 6.6x 6.9x 10.0x 7.1xEV/Earnings 26.9x 45.4x 52.8x 46.7x 33.9x EV/Earnings 7.1x 8.0x 8.8x 10.6x 10.6xGross Profit Margin 40.8% 40.2% 38.4% 36.5% 39.3% Gross Profit Margin 77.0% 73.0% 75.9% 70.7% 78.2%EBITDA Margin 8.5% 8.6% 8.6% 9.0% 9.4% EBITDA Margin 52.2% 50.6% 50.4% 43.4% 49.7%Net Income Margin 3.2% 3.0% 2.8% 2.7% 2.5% Net Income Margin 41.5% 36.7% 33.6% 31.4% 40.2%TTM Revenue Grow th (YoY) 13.6% 12.7% 23.1% 17.0% 12.6% TTM Revenue Grow th (YoY) 38.4% 27.2% 15.2% 15.9% 29.7%TTM EBITDA Grow th (YoY) 17.6% 11.1% 13.1% 6.3% 9.3% TTM EBITDA Grow th (YoY) 9.1% 15.9% 7.1% 25.3% 28.1%TTM Earnings Grow th (YoY) -33.7% -31.2% -4.7% -1.4% 17.6% TTM Earnings Grow th (YoY) -13.2% 2.3% -12.3% 2.6% 3.6%Current Ratio 1.6 1.5 2.1 2.3 2.3 Current Ratio 3.9 3.6 4.1 4.2 2.8Cash as Percent of Market Cap 14.7% 14.1% 14.5% 10.8% 13.7% Cash as Percent of Market Cap 20.6% 28.7% 27.4% 28.5% 28.6%Enterprise Value Grow th (YoY) 22.1% 44.4% 33.3% 49.0% 30.9% Enterprise Value Grow th (YoY) -25.2% -14.1% -5.0% 33.5% 20.3% 29| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX C: 3Q11 MERGERS AND ACQUISITIONS, SELECT PUBLIC SELLER VALUATIONS TTM RevBuyer Seller Purchase Price Enterprise Value EV/Rev EV/EBITDA Grow thHew lett-Packard Company Autonomy Corp. plc (LSE:AU.) $11,036,800,000 $10,300,590,000 11.1x 25.2x 12.2%PLATO Learning, Inc. Renaissance Learning Inc. (NasdaqGS:RLRN) $493,880,000 $484,570,000 3.6x 12.3x 6.8%ACI Worldw ide S1 Corporation (NasdaqGS:SONE) $510,390,000 $438,670,000 1.9x 35.8x 2.1%BServ, Inc. Fundtech Ltd. (NasdaqGS:FNDT) $382,410,000 $308,260,000 2.0x 15.5x 15.1%HarbourVest Partners; Nova Capital Parseq plc (AIM:PSQ) $43,170,000 $60,210,000 2.3x 9.0x n/aFrancisco Partners Management LLC eFront SA (ENXTPA:ALEFT) $55,740,000 $57,240,000 1.5x 12.8x n/aBetter Capital Limited Clarity Commerce Solutions plc (AIM:CCS) $14,710,000 $14,740,000 0.5x - 4.1% 30| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX D: 3Q11 MERGERS AND ACQUISITIONS, MOST ACTIVE BUYERS Purchase Enterprise SellerBuyer Seller Price Value Revenue EV/RevAFS Technologies Ross Computer Systems - - - - Synectics Group, Inc. and Answ ers Systems - - - -Allocate Softw are RosterOn $3,210,000 $3,210,000 $3,210,000 1.0x Zircadian $11,400,000 $9,770,000 $4,070,800 2.4xAugme Technologies HipCricket $57,850,000 $57,420,000 $8,790,000 6.5x JAGTAG $5,550,000 $5,550,000 $1,300,000 4.3xBitzio Bitzio $2,750,000 $2,750,000 - - Thinking Drone $2,580,000 $2,580,000 - -Callidus Softw are iCentera $7,900,000 $7,900,000 - - Rapid Intake - - - -Cisco Systems Axiom Systems Limited, Axioss Softw are $30,650,000 $30,650,000 - - TaskDock - - - -CVC Capital Partners ConvergEx - - - - Raet B.V. - - - -Electronic Arts Bight Interactive - - - - PopCap Games $1,250,000,000 $1,250,000,000 $167,000,000 7.5xGB Group Advanced Checking Services $8,170,000 $8,170,000 - - Data Discoveries $974,000 $974,000 -Glu Mobile Blammo Games $21,870,000 $21,870,000 - - Griptonite $68,040,000 $57,840,000 - -Google Punchd Labs - - - - Zave Netw orks - - - -HaiVision Systems Kulabyte - - - - MontiVision Imaging Technologies - - - -Intel CoFluent Design SA - - - - Telmap $300,000,000 $300,000,000 - -*Revenue estimate 31| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX D: 3Q11 MERGERS AND ACQUISITIONS, MOST ACTIVE BUYERS (CONTINUED) Purchase Enterprise SellerBuyer Seller Price Value Revenue EV/RevNuance Communications Loquendo - $75,460,000 - - Webmedx - - - -Open Text Global 360 $260,000,000 $260,000,000 $89,965,398 2.9x Operitel - - - -Oracle Corporation GoAhead Softw are - - - - InQuira* - $230,000,000 $45,000,000 5.1x Ksplice - - - -Salesforce.com Assistly $50,000,000 - - - Navajo Systems - - - -SAP Crossgate AG - - - - Right Hemisphere - - - -Sirius Corporation Chameleon Technology $5,330,000 $5,330,000 $3,200,000 1.7x Pinnacle Softw are $1,070,000 $1,070,000 $1,600,000 0.7xThe Riverside Company Centiv Services - - - - TRANSPOREON - - - -Thomson Reuters Corporation IGD Systems - - - - Lanw orth - - - - Sistemas Bejerman - - - - Solcara $4,020,000 $4,020,000 $1,200,000 3.3xUnit 4 N.V. Exie $8,920,000 $8,920,000 - - Unit4 Prosoft - - - -Verint Systems GMT $42,000,000 $42,000,000 - - Vovici $75,400,000 $75,400,000 - -VIP Tone EdPay - - - - Global Grid for Learning - - - -Vista Equity Partners Sage Softw are Healthcare $314,680,000 $314,680,000 $240,200,000 1.3x Thomson Reuters, Trade and Risk Management Business - - - -*Revenue estimate 32| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX E: 3Q11 MERGERS AND ACQUISITIONS, SELECT SOFTWARE INDUSTRY MEGA-DEALS TTM Rev Date Buyer Seller Purchase Price Enterprise Value EV/Rev EV/EBITDA Grow th08/18/2011 Hew lett-Packard Company Autonomy Corp. plc (LSE:AU.) $11,036,800,000 $10,300,590,000 11.1x 25.2x 12.2%08/04/2011 Datatel, Inc. SunGard Higher Education, Inc. $1,775,000,000 $1,775,000,000 - - -07/11/2011 Electronic Arts Inc. PopCap Games, Inc. $1,250,000,000 $1,250,000,000 7.5x - -07/11/2011 NCR Corp. Radiant Systems Inc. $1,241,720,000 $1,139,110,000 3.1x 20.7x -07/05/2011 Western Union Co. Travelex Global Business Payments, Inc. $975,300,000 $975,300,000 4.3x 13.6x -08/05/2011 Welsh, Carson, Anderson & Stow e Triple Point Technology, Inc. $500,000,000 $500,000,000 - - -07/26/2011 IHS Inc. Seismic Micro-Technology, Inc. $500,000,000 $500,000,000 - - -33| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX F: 3Q11 MERGERS AND ACQUISITIONS, SELECT SOFTWARE-AS-A-SERVICE SELLERS Enterprise SellerDate Buyer Seller Value Revenue EV/Rev09/29/2011 Salesforce.com Navajo Systems - - -09/28/2011 Vantage Media BrokersWeb - - -09/26/2011 Automatic Data Processing Asparity Decision Solutions - - -09/25/2011 AA DriveTech Intelligent Data Systems - - -09/23/2011 Callidus Softw are Rapid Intake - - -09/22/2011 Watchdog Dataview - - -09/21/2011 Salesforce.com Assistly - - -09/21/2011 Infomedia Different Aspect Softw are $5,150,000 - -09/19/2011 NICE Systems The Fizzback Group* $80,000,000 $20,000,000 4.0x09/19/2011 GTCR Bserv - - -09/15/2011 Pearson Connections Education $400,000,000 - -09/14/2011 Intech Hotel Solutions Magic Rooms Solutions India - - -09/13/2011 ExactTarget Frontier Digital Business - - -09/11/2011 8x8 Contactual $27,500,000 $8,300,000 3.3x09/08/2011 VIP Tone EdPay - - -09/08/2011 CVC Capital Partners Raet B.V. - - -09/08/2011 CPA Global Ipendo - - -09/08/2011 iControl ESI Firefly Dataw orks - - -09/07/2011 ConnectEdu EducationDynamics, Enrollment/Retention Division - - -09/07/2011 BroadSoft ilinc Communications $3,470,000 - -09/02/2011 The Riverside Company Centiv Services - - -08/26/2011 Connelly, Carlisle, Fields & Nichols Triton HR - - -08/26/2011 GVA Acuity Acuity Management Solutions - - -08/24/2011 Xero Limited Paycycle Australia $1,630,000 - -08/23/2011 Engine Yard Orchestra Platform - - -08/17/2011 R.R. Donnelley & Sons LibreDigital - - -08/15/2011 Drake Enterprises Copanion - - -08/12/2011 Premiere Global Services V-cube - - -08/09/2011 Nielsen Holdings Marketing Analytics - - -08/08/2011 Great Hill Partners Plimus $115,000,000 - -08/03/2011 Augme Technologies HipCricket $57,420,000 $8,790,000 6.5x08/02/2011 Questback AS Globalpark - - -07/29/2011 Transcend Services Salar $11,000,000 $4,000,000 2.8x07/28/2011 Oracle InQuira* $230,000,000 $45,000,000 5.1x07/28/2011 Arbitron Arbitron Mobile $23,700,000 $2,600,000 8.9x07/27/2011 Act-On Softw are Marketbright - - -07/27/2011 VIP Tone Global Grid for Learning - - -07/26/2011 CCH SpeedTax - - -07/26/2011 Retalix MTXEPS $24,950,000 - -07/25/2011 Ivrnet Gymsmart - - -07/21/2011 Oracle Ksplice - - -07/19/2011 Verint Systems Vovici $75,400,000 - -07/13/2011 The Riverside Company TRANSPOREON - - -07/11/2011 WhatCounts Blue Sky Factory - - -07/08/2011 Planon Site Alpha SA - - -07/05/2011 Callidus Softw are iCentera $7,900,000 - -07/04/2011 Thomson Reuters Solcara $4,020,000 $1,200,000 3.3x07/01/2011 Thomson Reuters IGD Systems - - -*Revenue Estimate34| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX G: 3Q11 MERGERS AND ACQUISITIONS – DEAL INSIGHTHewlett-Packard (NYSE:HPQ) acquires Autonomy (LSE:AU)Category: Content ManagementPurchase Price: $10,300,590,000 EVSeller Revenue (TTM): $931,100,000Seller EBITDA (TTM): $409,190,000Revenue Multiple: (TTM): 11.1xEVEBITDA Multiple (TTM): 25.2xEVPayment terms: CashSEG’s Perspective:Technology giant Hewlett-Packard, acquires Autonomy, Britain’s highest publicly valued software provider.With Gartner estimating enterprise content growth at a CAGR of 50-60%, the acquisition brings HP marketleading products to analyze structured and unstructured enterprise data, and continues HP’s desired shiftaway from increasingly commoditized hardware and towards higher margin software and services.Additionally, Autonomy’s SaaS e-discovery and content archiving solutions are highly complementary toHP’s infrastructure management products. HP’s $42.02 per share tender offer to acquire Autonomyrepresents a 59.3% premium over Autonomy’s pre-announcement average 30 days closing stock price.NCR Corp. (NYSE:NCR) acquires Radiant Systems (NASDAQ:RADS)Category: Point-of-Sale SystemsPurchase Price: $1,139,110,000EVSeller Revenue (TTM): $367,220,000Seller EBITDA (TTM): $55,100,000Revenue Multiple (TTM): 3.1xEVEBITDA Multiple (TTM): 20.7xEVPayment Terms: CashSEG’s Perspective:NCR, a provider of financial services oriented self-service technologies, acquires Radiant Systems, aleading provider of point-of-sale systems and ancillary solutions for the hospitality and retail sectors. Theacquisition provides NCR a strong presence in the hospitality and specialty retail markets, provides down-market penetration via Radiant’s high growth SMB SaaS solution suite, and expands NCR’s addressablemarket by approximately $8 billion. Furthermore, Radiant will leverage NCR’s strong international channelpresence for growth, as Radiant currently garners only 13% international revenue versus NCR’sinternational sales of 55%. NCR’s $28 per share tender offer to acquire Radiant Systems represents a 36.6% premium over Radiant’s pre-announcement average 30 days closing stock price. 35| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX G: 3Q11 MERGERS AND ACQUISITIONS – DEAL INSIGHT (CONTINUED)NICE Systems (TASE:NICE) acquires The Fizzback GroupCategory: Customer Experience ManagementPurchase Price: $80,000,000Seller Revenue (estimate): $20,000,000Revenue Multiple (estimate): 4.0xPayment Terms: CashSEG’s Perspective:Nice Systems, a provider of enterprise customer service, risk and security software and hardware, acquiresThe Fizzback Group, a provider of SaaS-based multi-channel natural language analytics solutions forcustomer experience and engagement management. The acquisition bolsters NICE Systems’ customerexperience management offering by adding natural language processing of unstructured customer data toenhance customer experiences and interactions at the point of engagement. The acquisition follows on theheels of NICE Systems’ competitor Verint announcing the purchase of customer experience managementvendor, Vovici ($75 million), in July 2011, and continues a trend of strategic acquisitions in the social andCRM unstructured data analytics sectors in 2011.Open Text (NASDAQ:OTEX) acquires Global 360Category: Business Process ManagementPurchase Price: $260,000,000Seller Revenue (estimate): $90,000,000Revenue Multiple (estimate): 2.9xPayment Terms: CashSEG’s Perspective:Enterprise software provider, Open Text, acquires Global 360, a leading provider of business process management(BPM) applications. With the acquisition, Open Text strengthens its position as the dominant provider of Microsoft-based business process management suites, a highly fragmented market with many low-cost SharePoint providers,and shores up the Company’s position against IBM and EMC in the growing BPM segment. Global 360 alsoprovides Open Text with a stronger public sector presence via its well-regarded case management products, anindustry segment Open Text strengthened earlier this year via its acquisition of Metastorm. Global 360 marks OpenText’s third BPM acquisition in recent years, following purchases of Metastorm ($182 million, 2.4x TTM revenueestimate) in February 2011 and Captaris ($109.5EV million, 1.0xEV TTM revenue) in September 2008. 36| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS Date Buyer Seller 09/30/2011 Sunquest Information Systems, Inc. Elekta AB, Anatomic Pathology Information System 09/30/2011 Exec-U-Store LLC Datafiche 09/29/2011 Project Oda, Inc. Watchpoints, Inc. 09/29/2011 Visi Inc PLC (DB:VZJ) VIA3 Corporation 09/29/2011 Ultra Electronics Holdings plc (LSE:ULE) AEP Netw orks, Inc. 09/29/2011 Intel Corporation (NasdaqGS:INTC) Telmap, Ltd. 09/29/2011 Red Gate Softw are Ltd. Cocoa Controls 09/28/2011 Greenw ay Medical Technologies, Inc. CySolutions, Inc. 09/28/2011 Unity Technologies SF Unity Canada 09/28/2011 eCommerce Industries, Inc. Digital Gatew ay Inc. 09/28/2011 Meru Netw orks, Inc. (NasdaqGM:MERU) Identity Netw orks Ltd. 09/28/2011 VMw are, Inc. (NYSE:VMW) PacketMotion, Inc. 09/28/2011 WWB Corporation RealCom, Inc. (TSE:3856) 09/27/2011 GBS Enterprises Incorporated (OTCBB:GBSX) Synaptris, Inc. 09/27/2011 China ITS (Holdings) Co., Ltd. (SEHK:1900) eSOON Holdings Corp. 09/27/2011 IMImobile Pvt Ltd. Skinkers Limited 09/27/2011 California Regional Multiple Listing Service, Inc. SoCalMLS Inc. 09/26/2011 IT Mídia S.A. Catálogo Hospitalar 09/26/2011 vw d Vereinigte Wirtschaftsdienste AG (XTRA:BSJ) Il Sole 24 ORE S.p.A., Business Unit Finanza 09/26/2011 iPractice Group Inc. Doctors Access, Inc. 09/23/2011 FFastfill plc (AIM:FFA) Spread Intelligence LLP 09/23/2011 AT&T Corp. Superclick, Inc. (OTCBB:SPCK) 09/23/2011 HarbourVest Partners, LLC; Nova Capital Management Ltd. Parseq plc (AIM:PSQ) 09/23/2011 Mercer LLC Censeo Corporation 09/23/2011 SNL Financial LC Highline Data LLC 09/23/2011 zipLogix, Inc. Realfast, Inc. 09/23/2011 Martin Daw es Group Martin Daw es Systems Limited 09/22/2011 Velti Plc (NasdaqGS:VELT) Air2Web, Inc. 09/22/2011 Vista Equity Partners Sage Softw are Healthcare, Inc. 09/22/2011 PulsePoint, Inc. Datran Media Corp. 09/22/2011 Keynectis S.A. OpenTrust S.A 09/22/2011 Oracle Corporation (NasdaqGS:ORCL) GoAhead Softw are, Inc. 09/22/2011 QuoteMedia Inc. (OTCPK:QMCI) Stockgroup Media Inc., Mobile Operations 09/21/2011 U1 Game Digital Entertainment (Beijing) Co., Ltd. Tw o Studios of iOS 09/21/2011 Wolfson Microelectronics plc (LSE:WLF) Dynamic Hearing Pty Ltd. 09/21/2011 Tagged Inc. WeGame.com, Inc. 09/21/2011 Cardtronics USA, Inc. LocatorSearch, LLC 09/21/2011 Cassiopae SAS Field Solutions Limited 09/21/2011 AVAST Softw are a.s. ITAgents interactive softw are solutions GmbH 09/21/2011 Siemens AG (DB:SIE) Active SA37| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS (CONTINUED) Date Buyer Seller 09/21/2011 Unit 4 N.V. (ENXTAM:UNIT4) Unit4 Prosoft Pte Ltd. 09/20/2011 Warburg Pincus LLC; Vestar Capital Partners International Asset Systems USA Limited 09/20/2011 PFU Limited ABBYY Group 09/20/2011 Change.Org, Inc. The Actuable Netw ork SL 09/20/2011 Donovan Data Systems, Inc. MediaBank, LLC 09/20/2011 Litéra Corp. CitationWare LLC 09/20/2011 SAP AG (DB:SAP) Crossgate AG 09/19/2011 Geodata AS GIS partner AS 09/19/2011 f1 colour limited st8us group limited 09/19/2011 EMSystems, LLC Collaborative Fusion, Inc. 09/19/2011 Soprano Oyj (HLSE:SNO1V) Pipfrog AS 09/19/2011 Electronics for Imaging, Inc. (NasdaqGS:EFII) Prism Group Holdings Pty Ltd 09/16/2011 Capita Secure Information Systems Cedar HR Softw are Limited 09/16/2011 Linx Sistemas E Consultoria Ltda. Spress Informática S/A 09/16/2011 Global Geophysical Services, Inc. (NYSE:GGS) Sensor Geophysical Ltd. 09/15/2011 LINK Mobility AS Aspiro Mobile Solutions AS 09/15/2011 Silverback Enterprise Group Inc. Visionael Corporation 09/14/2011 Bitzio, Inc. (OTCBB:BTZO) Thinking Drone, Inc. 09/14/2011 Smartlogic Semaphore Limited SchemaLogic, Inc. 09/14/2011 FXDD Malta Ltd. Frontier FX Limited 09/14/2011 WebTrends Corporation Reinvigorate 09/13/2011 Verint Systems Inc. (NasdaqGS:VRNT) GMT Corporation 09/13/2011 Bio Data, Inc. LabLife Softw are, Inc. 09/13/2011 Revolution Capital Group, LLC CAP XG LLC 09/12/2011 Bigpoint GmbH 49Games Gesellschaft für Softw areentw icklung 09/12/2011 Tradar Limited Odyssey Financial Technologies S.A., InvestmentManager 09/12/2011 Dena Co. Ltd. (TSE:2432) Punch Entertainment (Vietnam), Inc. 09/09/2011 Nepro Japan Co. Ltd. (JASDAQ:9421) MOBILE & GAMESTUDIO Inc. 09/09/2011 eVestment Alliance, LLC Channel Capital Group, Inc. 09/09/2011 Arena Interactive oy Steam Communications Oy 09/09/2011 AFS Technologies, Inc. Ross Computer Systems, Inc. 09/08/2011 Pendrell Corporation (NasdaqGM:PCO) ContentGuard, Inc. 09/08/2011 Betgenius Limited Boolabus Limited 09/08/2011 MarkitSERV LLC Logicscope Limited 09/08/2011 Hellman & Friedman LLC OpenLink Financial, Inc. 09/08/2011 Thought Equity Motion, Inc. Panvidea, Inc. 09/08/2011 Inbaltech Ltd. BackupMyTree LLC 09/08/2011 Adobe Systems Inc. (NasdaqGS:ADBE) Iridas, Certain Assets 09/08/2011 Imtech NV (ENXTAM:IM) Techsol Marine, Inc. 09/07/2011 Attunity, Inc. RepliWeb, Inc.38| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS (CONTINUED) Date Buyer Seller 09/07/2011 Audatex North America, Inc. See Progress, Inc. 09/07/2011 Gild Coderloop Inc. 09/07/2011 Vostu, Ltd. MP Game Studio 09/06/2011 International Oncology Netw ork IntrinsiQ, LLC 09/06/2011 Educational Testing Service, Inc. Edusoft Ltd. 09/06/2011 MSC.Softw are Corporation Free Field Technologies S.A. 09/06/2011 CareerBuilder Inc. JobScout24 GmbH 09/06/2011 Confirmit ASA Techneos Systems Inc. 09/06/2011 Parametric Technology Corporation (NasdaqGS:PMTC) 4CS Solutions, Inc. 09/06/2011 SAP AG (DB:SAP) Right Hemisphere Limited 09/03/2011 AFORE Solutions, Inc. Comsecw are Inc. 09/02/2011 Ellie Mae, Inc. (AMEX:ELLI) Del Mar Datatrac, Inc. 09/02/2011 Law son Softw are Americas, Inc. Approva Corporation 09/02/2011 Ascentium Corporation Cactus Commerce Inc. 09/02/2011 Visualization Sciences Group, Inc. Noesis 09/02/2011 Fynske Medier P/S Woerk ApS 09/02/2011 Google Inc. (NasdaqGS:GOOG) Zave Netw orks, Inc. 09/01/2011 International Business Machines Corp. (NYSE:IBM) Algorithmics, Inc. 09/01/2011 All Covered, Inc. LAN Solutions, Inc. 09/01/2011 UNICOM Systems, Inc. illustro Systems International, LLC 08/31/2011 Backs Group Inc. (JASDAQ:4306) Cross Concept Corporation 08/31/2011 SMA Alliance, Inc. (OTCPK:SMAA.D) USAutoplex.com 08/31/2011 Better Capital Limited (AIM:BCAP) Clarity Commerce Solutions plc (AIM:CCS) 08/31/2011 DiCentral Corporation Emanio, Inc., Trading Partner and Unite! 08/31/2011 BEWA DeLaagsteRekening B.V. 08/31/2011 Core Gaming Limited Betlow Limited 08/30/2011 DG FastChannel, Inc. (NasdaqGS:DGIT) chors GmbH And EyeWonder, Inc. 08/30/2011 Prognosis Health Information Systems LLC Creative Healthcare Systems Inc. 08/30/2011 Cable New s Netw ork LP, LLLP Zite, Inc. 08/30/2011 TAKE 5 SOLUTIONS, LLC. Digital Reach Group Limited 08/30/2011 TIBCO Softw are Inc. (NasdaqGS:TIBX) Nimbus Partners Limited 08/30/2011 Intel Corporation (NasdaqGS:INTC) CoFluent Design SA 08/29/2011 The Limerock Group LLC iGrafx, Inc. 08/29/2011 Lokion, Inc. Resolute Games & Apps 08/29/2011 PennWell Corporation eMarket Softw are, Inc. 08/26/2011 Calypto Design Systems, Inc. Mentor Graphics Corporation, Catapult C Synthesis Tool 08/26/2011 General Dynamics C4 Systems, Inc. Innovative Security Systems, Inc. 08/26/2011 Xceedium, Inc. Irdeto B.V., Cloakw are Passw ord Management Business 08/25/2011 Autodesk, Inc. (NasdaqGS:ADSK) NUMENUS GmbH 08/25/2011 State Street Corp. (NYSE:STT) Digital Vega FX Ltd.39| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS (CONTINUED) Date Buyer Seller 08/24/2011 LMS International NV SAMTECH S.A. 08/24/2011 CityPockets Inc. DealBurner, Inc. 08/24/2011 Millennium Healthcare, Inc. (OTCPK:MHCC) Premier Technology Resources, LLC 08/23/2011 Canto, Inc. Vitras GmbH 08/23/2011 Vitec Multimedia Assistance Technique, Defense and Security Business 08/23/2011 BinBit S.A de C.V Forest Media International PT 08/22/2011 PLATO Learning, Inc. Renaissance Learning Inc. (NasdaqGS:RLRN) 08/22/2011 Banc of America Strategic Investments Corporation Tora Trading Services Ltd. 08/22/2011 New Mountain Capital, LLC SNL Financial LC 08/22/2011 NYSE Technologies, Inc. Metabit Co Ltd. 08/22/2011 Ignite Health LLC Syndicated Methods, Inc. 08/22/2011 ADERANT Holdings, Inc. CompuLaw LLC and Client Profiles, Inc. 08/21/2011 Bain Capital, LLC MYOB Limited 08/21/2011 Thomson Reuters Corporation (TSX:TRI) Sistemas Bejerman SA 08/21/2011 Skype Global S.à r.l. GroupMe, Inc. 08/19/2011 AFS Technologies, Inc. Synectics Group, Inc. and Answ ers Systems Inc. 08/19/2011 SuperBox, Inc. (OTCPK:SBOX) Novamira Corp. 08/19/2011 Cisco Systems, Inc. (NasdaqGS:CSCO) TaskDock, Inc. 08/18/2011 Hew lett-Packard Company (NYSE:HPQ) Autonomy Corp. plc (LSE:AU.) 08/18/2011 Autologue Computer Systems, Inc. SBC Solutions, Inc 08/17/2011 Gimmal Group, Inc. ERP-Link Corporation 08/17/2011 GasthuisZusters Antw erpen CellCura ART Lab Solution 08/17/2011 Onsoft Computer Systems AS Emisoft AS 08/16/2011 CSDC Systems Inc. Privasoft Corp. 08/16/2011 AXIOM Systems, Inc. Ivertexo Internet Solutions Inc. 08/16/2011 ESI Group SA (ENXTPA:ESI) ICIDO GmbH 08/15/2011 World Energy Solutions, Inc. (NasdaqCM:XWES) Co-eXprise, Inc., Energy Procurement Business 08/15/2011 Apollo Group Inc. (NasdaqGS:APOL) Carnegie Learning, Inc. 08/15/2011 iEnvision Technology Inc. Geller Data Solutions, Inc. 08/15/2011 Deloitte Consulting Intrasphere Technologies, Inc. 08/15/2011 Group Commerce Inc. Socialight, Inc. 08/15/2011 Digital Chocolate, Inc. Sandlot Games Corporation 08/15/2011 Electronic Arts Inc. (NasdaqGS:ERTS) Bight Interactive Inc. 08/14/2011 RJT Compuquest, Inc. Kogent Corporation, Canadian Operations 08/13/2011 Nuance Communications, Inc. (NasdaqGS:NUAN) Loquendo S.p.A. 08/12/2011 Prophecy International Holdings Ltd. (ASX:PRO) InterSect Alliance Pty Ltd. 08/12/2011 Allocate Softw are plc. (AIM:ALL) Zircadian Ltd. 08/11/2011 Boeing Integrated Defense Systems, Inc. Solutions Made Simple, Inc 08/10/2011 BServ, Inc. Fundtech Ltd. (NasdaqGS:FNDT) 08/10/2011 Huaw ei Technologies Co., Ltd. International Turnkey Systems, Business Support Division40| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS (CONTINUED) Date Buyer Seller 08/10/2011 MIH Allegro B.V. NetDirect s.r.o. 08/10/2011 Momentum Advanced Solutions Inc. Novator Systems Ltd., Certain Strategic Assets 08/10/2011 Terremark Worldw ide, Inc. CloudSw itch, Inc. 08/09/2011 Cisco Systems, Inc. (NasdaqGS:CSCO) Axiom Systems Limited, Axioss Softw are 08/09/2011 MWI Veterinary Supply Co. Micro Beef Technologies, Ltd. 08/09/2011 Schneider Electric S.A. (ENXTPA:SU) 7-Technologies A/S 08/08/2011 Pansoft Company Limited (NasdaqCM:PSOF) Hefei Langji Technology Co., Ltd. 08/08/2011 Wave Systems Corp. (NasdaqCM:WAVX) Safend Ltd. 08/08/2011 Francisco Partners Management LLC eFront SA (ENXTPA:ALEFT) 08/08/2011 Symphony Corporation The Janis Group, Inc. 08/08/2011 Telekinesys Research Limited Trinigy Gmbh 08/08/2011 WebTrends Corporation Reinvigorate 08/08/2011 Silicon Graphics International Corp. (NasdaqGS:SGI) SGI OpenFOAM 08/08/2011 Baker Hughes Incorporated (NYSE:BHI) Verdande Energy AS 08/05/2011 NCC Group plc. (LSE:NCC) Axzona Ltd. 08/05/2011 Welsh, Carson, Anderson & Stow e Triple Point Technology, Inc. 08/05/2011 CCH New Zealand Limited Business Fitness NZ Limited 08/05/2011 Intergraph Corporation Augusta Systems, Inc. 08/05/2011 PREMIER Biosoft International, Inc. Redasoft Corporation 08/05/2011 Platinum Equity, LLC Quark, Inc. 08/05/2011 TriTech Softw are Systems Inc. VisionAIR, Inc. 08/05/2011 TMX Group Inc. (TSX:X) TMX Atrium 08/05/2011 OPT, Inc. (JASDAQ:2389) MCN Asia Holdings,Pte. Ltd. 08/04/2011 Datatel, Inc. SunGard Higher Education, Inc. 08/04/2011 Abidance Consulting Corporation Fortech Softw are Consulting, Inc. 08/04/2011 In-Touch Insight Systems Inc. Service Intelligence, Inc. 08/04/2011 ai-one, Inc. Auto-Semantics 08/04/2011 TransVoyant LLC ObjectFX Corporation 08/04/2011 Trubiquity, Inc. ECbridges, Inc. 08/03/2011 Broadridge Securities Processing Solutions, Inc. Paladyne Systems, Inc. 08/03/2011 Vista Equity Partners Thomson Reuters, Trade and Risk Management Business 08/03/2011 Red Bee Media Limited TV Genius Ltd. 08/03/2011 Galaxy4Gamers LLC 1337pw n 08/03/2011 SaveDaily, Inc. (OTCBB:SAVY) Nine Mile Softw are, Inc. 08/02/2011 Market Leader, Inc. (NasdaqGS:LEDR) SharperAgent Inc. 08/02/2011 Glu Mobile, Inc. (NasdaqGM:GLUU) Griptonite Inc. 08/02/2011 Compact Information Systems, Inc. AccuData Holdings, Inc. 08/02/2011 Topcon Positioning Systems, Inc. AGCO, SGIS Agronomic Desktop Softw are Business 08/02/2011 Sony Computer Entertainment Worldw ide Studios Sucker Punch Productions, L.L.C. 08/02/2011 InMobi ChipIn, Inc.41| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS (CONTINUED) Date Buyer Seller 08/02/2011 Multi Brasil S/A Ofertas X 08/01/2011 InvestorFirst Limited (ASX:INQ) MarketsPlus Holdings Pty Ltd 08/01/2011 Dillistone Group Plc (AIM:DSG) Woodcote Softw are Limited 08/01/2011 Beijing Shiji Information Technology, Co. Shanghai Bestech Softw are Co., Ltd. 08/01/2011 Digital Barriers plc (AIM:DGB) Keeneo SAS 08/01/2011 HTC America Inc. Dashw ire, Inc. 08/01/2011 Glu Mobile, Inc. (NasdaqGM:GLUU) Blammo Games Inc. 08/01/2011 The Carlyle Group LP ITRS limited 08/01/2011 Globant, Inc. Nextive 08/01/2011 YapStone, Inc. PropertyBridge, LLC 08/01/2011 LGS Global Ltd (BSE:532368) Ybrant Digital Limited 08/01/2011 EMC Corporation (NYSE:EMC) Asankya, Inc. 08/01/2011 Mphasis Limited (BSE:526299) Wyde Corporation 07/31/2011 GE Healthcare Ltd. SerphyDose SARL 07/29/2011 RealPage, Inc. (NasdaqGS:RP) Senior-Living.com, Inc. 07/29/2011 Nimsoft, Inc. Watchmouse B.V. 07/29/2011 Bechtle AG (XTRA:BC8) HanseVision GmbH 07/29/2011 Crealogix Holding AG (SWX:CLXN) Cordys Deutschland AG 07/29/2011 Thomson Reuters Corporation (TSX:TRI) Lanw orth, Inc. 07/28/2011 GB Group plc (AIM:GBG) Advanced Checking Services Limited 07/28/2011 Docu Group Sw eden AB Norge Bygges AS and Sverige Bygger AB 07/28/2011 Intermolecular, Inc. Symyx Technologies Inc., Certain Assets 07/28/2011 Rakuten Europe s.a.r.l Tradoria GmbH 07/28/2011 Sopra Group (ENXTPA:SOP) Delta-informatique SA 07/27/2011 Vringo, Inc. (AMEX:VRNG) Zlango, Ltd. 07/27/2011 Kroll Risk & Compliance Solutions CVM Solutions, LLC 07/27/2011 mediba Inc. Nobot Inc. 07/27/2011 SoMo Technologies, Inc. Gotta Go Text, LLC and Hot Deals Netw ork 07/26/2011 ACI Worldw ide, Inc. (NasdaqGS:ACIW) S1 Corporation (NasdaqGS:SONE) 07/26/2011 IHS Inc. (NYSE:IHS) Seismic Micro-Technology, Inc. 07/26/2011 Bodhtree Solutions Inc. e2e Analytix Inc. 07/26/2011 Talaris Ltd. LUTZWOLF Systems GmbH 07/26/2011 NextGen Healthcare Information Systems, Inc. CQI Solutions, Inc. 07/26/2011 DIMOCO Direct Mobile Communications GmbH the agent factory GmbH 07/26/2011 MOKO.mobi Limited (ASX:MKB) mbuzzy, Inc. 07/25/2011 Elevate Marketing Group, LLC Zipadi Technologies, LLC 07/25/2011 QUALCOMM Incorporated (NasdaqGS:QCOM) GestureTek, Inc., Certain Assets 07/22/2011 Capita Hartshead Limited NorthgateArinso UK Limited, Pension Business 07/22/2011 Bain Capital Ventures ZeroTurnaround OÜ 07/22/2011 Experian plc (LSE:EXPN) VIRID Interatividade Digital Ltda42| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS (CONTINUED). Date Buyer Seller 07/22/2011 Google Inc. (NasdaqGS:GOOG) Pittsburgh Pattern Recognition, Inc. 07/21/2011 ILL inc. (JASDAQ:3854) WEB BASE Co., Ltd. 07/21/2011 HaiVision Systems, Inc. Kulabyte Corporation 07/21/2011 HaiVision Systems, Inc. MontiVision Imaging Technologies 07/21/2011 Friedman Corporation Logimax Inc. 07/21/2011 Open Text Corp. (NasdaqGS:OTEX) Operitel Corporation 07/21/2011 Citrix Systems, Inc. (NasdaqGS:CTXS) RingCube Technologies, Inc. 07/20/2011 Augme Technologies, Inc. (OTCBB:AUGT) JAGTAG, Inc. 07/20/2011 Patsystems plc (AIM:PTS) MIXIT, Inc. 07/20/2011 Playtech Limited (AIM:PTEC) Mobenga AB 07/20/2011 CVC Capital Partners Ltd. ConvergEx Inc. 07/20/2011 Veronis Suhler Stevenson Strata Decision Technology, LLC 07/20/2011 Stratos B.V. Blue Ocean Wireless Limited 07/20/2011 VOIP PAL.com, Inc. (OTCPK:VPLM) MyPointsPhone.com 07/19/2011 LogMeIn, Inc. (NasdaqGS:LOGM) Connected Environments Ltd. 07/19/2011 Riverbed Technology, Inc. (NasdaqGS:RVBD) Zeus Technology Limited 07/19/2011 Data Impact, Inc. Transactis, Inc. 07/19/2011 Vensi, Inc. New Edition Softw are, LLC 07/19/2011 Winshuttle, Inc. ShareVis, Inc. 07/19/2011 Ascendum Solutions, LLC TinyBrick, LLC 07/19/2011 AMX Corporation SchoolView Technologies, LLC 07/19/2011 Teachers Private Capital Flexera Softw are, Inc. 07/19/2011 Sapientnitro USA, Inc. CLANMO GmbH 07/19/2011 Tibanne Co., Ltd. MtGoxLive.com 07/19/2011 Komli Media Private Limited mobile-w orx inc. 07/19/2011 Vertafore, Inc. StoneRiver FSC, Inc. 07/18/2011 3D Systems Corp. (NYSE:DDD) Alibre, Inc. 07/18/2011 Robert Bosch GmbH inubit AG 07/18/2011 Tw elve Court Inc. Aegom Interactive, Inc. 07/18/2011 Editorial Aranzadi S.A. Jurisoft Sistemas de Informatica Juridica S.L. 07/18/2011 Rolta India Ltd. (BSE:500366) ACLS Systems, FZC 07/17/2011 Navigant Consulting Inc. (NYSE:NCI) Ignited Solutions, LLC 07/15/2011 Century Softw are Holdings Berhad (KLSE:CENSOF) PT. Praisindo Teknologi 07/15/2011 Unit 4 N.V. (ENXTAM:UNIT4) Exie AS 07/15/2011 IndustrialSAVER IndustrialMRO 07/15/2011 Blackbern Partners LLC Cadec Global, Inc. 07/14/2011 iAccel Limited Rubicon Softw are Limited 07/14/2011 Mobile Intelligence Solutions, Inc. Umber Systems, Inc. 07/14/2011 Piped Bits Co. Ltd. (TSE:3831) Business On Line Inc., specific business units 07/14/2011 Nuance Communications, Inc. (NasdaqGS:NUAN) Webmedx, Inc.43| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS (CONTINUED). Date Buyer Seller 07/14/2011 Energy King, Inc. (OTCPK:ENKG) Venue Media LLC 07/14/2011 Accenture plc (NYSE:ACN) Duck Creek Technologies, Inc. 07/13/2011 Bitzio, Inc. (OTCBB:BTZO) Bitzio Corp. 07/13/2011 Open Text Corp. (NasdaqGS:OTEX) Global 360, Inc. 07/13/2011 ZookaWare, LLC BluePenguin Softw are, Inc. 07/13/2011 One to One Interactive, Inc. Renu Mobile, Inc. 07/13/2011 ICON plc (NasdaqGS:ICLR) Firecrest Clinical Ltd. 07/12/2011 Main Capital Partners BV; Dolfin Capital EuroSystems Group BV 07/12/2011 Pariveda Solutions, Inc. Softagon Corporation 07/12/2011 DNA Finland Oy Forte Netservices Oy 07/11/2011 Sirius Corporation Limited (ASX:SIU) Pinnacle Softw are Pty Ltd. 07/11/2011 DORO SAS Prylos SAS 07/11/2011 Sirius Corporation Limited (ASX:SIU) Chameleon Technology Pty. Ltd. 07/11/2011 Yell Group plc (LSE:YELL) Znode, Inc. 07/11/2011 NCR Corp. (NYSE:NCR) Radiant Systems Inc. 07/11/2011 Electronic Arts Inc. (NasdaqGS:ERTS) PopCap Games, Inc. 07/11/2011 Environmental Systems Research Institute, Inc. Procedural Inc. 07/11/2011 GDS Link, LLC Modellica SL 07/11/2011 CPI-HR, Inc. Summit Payroll Services, LLC 07/11/2011 Agile Sports Technologies, Inc. Digital Sports Video, Inc. 07/11/2011 Cadence Design Systems Inc. (NasdaqGS:CDNS) Azuro, Inc. 07/11/2011 Linedata Services SA (ENXTPA:LIN) Fimasys S.A. 07/11/2011 Google Inc. (NasdaqGS:GOOG) Punchd Labs Inc 07/08/2011 Zynga, Inc. Zynga Toronto, Inc. 07/08/2011 Verdane Capital; Via Venture Partners A/S Dolphin Softw are AS 07/08/2011 Nexus AG (XTRA:NXU) Optim SAS 07/08/2011 Capita PLC (LSE:CPI) Beat Systems Limited 07/07/2011 GB Group plc (AIM:GBG) Data Discoveries Limited 07/07/2011 InterAmerican Gaming, Inc. (OTCPK:IAGM) Now phit Inc. 07/07/2011 Regular Accomplishment Sdn Bhd Customer Loyalty Solutions Sdn. Bhd. 07/07/2011 SumTotal Systems, Inc. CyberShift, Inc. 07/07/2011 MTI France S.A.S Global Secure Systems Limited 07/07/2011 BMC Softw are Inc. (NasdaqGS:BMC) BMC Mobility for IT Service Management 07/06/2011 Adw ays Co., Ltd. (TSE:2489) LAVION Social CO., LTD. 07/05/2011 LeCroy Corp. (NasdaqGM:LCRY) Bogatin Enterprises L.L.C. 07/05/2011 Allocate Softw are plc. (AIM:ALL) RosterOn Pty. Ltd. 07/05/2011 Western Union Co. (NYSE:WU) Travelex Global Business Payments, Inc. 07/05/2011 SiteCore A/S Pectora 07/05/2011 SmartBear Softw are, Inc. eviw are softw are AB 07/05/2011 Tektronix, Inc. Veridae Systems Inc.44| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright  2011 Software Equity Group, L.L.C., All Rights Reserved

Software Equity Group, L.L.C. Investment Banking / Mergers & AcquisitionsAPPENDIX H: SELECT 3Q11 SOFTWARE INDUSTRY MERGERS AND ACQUISITIONS (CONTINUED). Date Buyer Seller 07/05/2011 Allen Systems Group, Inc. The Information Systems Manager Inc. 07/04/2011 Computer Services Inc. (OTCPK:CSVI) HEIT, Inc. 07/01/2011 Wolters Kluw er Transport Services Transics International NV, Transport Management System 07/01/2011 Interactive Intelligence, Inc. (NasdaqGS:ININ) Pyxis Group Limited 07/01/2011 Irdeto USA, Inc. Rovi Corporation, BD+ Business 07/01/2011 Compuw are Corporation (NasdaqGS:CPWR) dynaTrace softw are GmbH 07/01/2011 Xtralis Pty Ltd. HeiTel Digital Video GmbH 07/01/2011 DST Health Solutions, Inc. Intellisource Healthcare Solutions, Inc. 07/01/2011 Seven Principles AG (XTRA:T3T) Eydolon Mobile Solutions GmbH45| 3Q11 SOFTWARE INDUSTRY EQUITY REPORT www.softwareequity.com Copyright © 2011 Software Equity Group, L.L.C., All Rights Reserved

To keep your finger on the pulse of the software equity markets, subscribe to our Monthly and Quarterly Reportsat http://www.softwareequity.com/research_reports.aspx.Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors.Since 1992, our firm has represented and guided private companies throughout the United States and Canada,as well as Europe, Asia Pacific, Africa and Israel. We have advised public companies listed on the NASDAQ,NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also represents several ofthe worlds leading private equity firms. For a confidential consultation without obligation, please contact KrisBeible, Director, Business Development (858 509-2800, kbeible@softwareequity.com).CONTACT INFORMATION:Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www.softwareequity.comp: (858) 509-2800f: (858) 509-2818The information contained in this Report is obtained from sources we believe to be reliable, but no representationor guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein.Nothing in this Report is intended to be a recommendation of a specific security or company or intended toconstitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity GroupLLC may have an interest in one or more of the securities or companies discussed herein.Financial data provided by Capital IQ.This Report may not be reproduced in whole or in part without the expressed prior written authorization ofSoftware Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces itsintellectual property rights. Copyright © 2011 by Software Equity Group, L.L.C., All Rights Reserved

Software Equity Report

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