The Internet Opportunities Associated with Being Digital November 11, 2008 Brian J. Pitz Brian P. Fitzgerald [email_address] [email_address] Kaizad Gotla Brian Russo [email_address] [email_address] This report has been prepared by Banc of America Securities LLC (BAS), member NASD, NYSE and SIPC. BAS is a subsidiary of Bank of America Corporation. Please see the important disclosures and analyst certification on page 224 of this report. BAS and its affiliates do and seek to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

Table of Contents - Opportunities Associated with Being Digital* Advertising & Related Services 7 eCommerce 23 Online Entertainment 29 Online Travel 33 The Mobile Internet 39 Appendix 61 * We highlight the reference to Being Digital from a book by Nicholas Negroponte of the same name. Although published in 1995, the book provides an informative history of the rise of technology as well as some interesting predictions for its future Covered Companies GOOG 15 YHOO 16 IACI 17 WBMD 18 VCLK 19 OMTR 20 RATE 21 MCHX 22 AMZN 25 EBAY 26 GSIC 27 DSCM 28 NFLX 32 PCLN 36 EXPE 37 OWW 38 GLUU 59

Advertising & Related Services 7

eCommerce 23

Online Entertainment 29

Online Travel 33

The Mobile Internet 39

Appendix 61

Covered Companies

GOOG 15

YHOO 16

IACI 17

WBMD 18

VCLK 19

OMTR 20

RATE 21

MCHX 22

AMZN 25

EBAY 26

GSIC 27

DSCM 28

NFLX 32

PCLN 36

EXPE 37

OWW 38

GLUU 59

Introduction We divide the internet sector into 5 sub-segments, based on business models and trends that affect the companies differently. These are: Online Advertising & Related Services eCommerce Online Travel Online Entertainment Mobile Internet In this presentation, we discuss each sub-segment individually along with the companies that fall within. More detailed company models are located in the appendix. Collectively, the internet sector is relatively young, with even the oldest of our covered companies having existed for less than 15 years. Growth for companies whose business models have been enabled by the internet is being driven by a secular shift of consumers using the medium. Progression of this shift varies by geography, with the U.S. a few years ahead of Europe in all but the Mobile internet, and Asia also behind the U.S. with a few exceptions (Japan generally, Mobile in almost all regions, and eCommerce in South Korea).

We divide the internet sector into 5 sub-segments, based on business models and trends that affect the companies differently. These are:

Online Advertising & Related Services

eCommerce

Online Travel

Online Entertainment

Mobile Internet

In this presentation, we discuss each sub-segment individually along with the companies that fall within. More detailed company models are located in the appendix.

Collectively, the internet sector is relatively young, with even the oldest of our covered companies having existed for less than 15 years.

Growth for companies whose business models have been enabled by the internet is being driven by a secular shift of consumers using the medium.

Progression of this shift varies by geography, with the U.S. a few years ahead of Europe in all but the Mobile internet, and Asia also behind the U.S. with a few exceptions (Japan generally, Mobile in almost all regions, and eCommerce in South Korea).

The Internet Our Internet Coverage Universe in Preferred Rank Order; Top Picks Google GOOG: Buy, $650 Price Target. Omniture OMTR: Buy, $24 Price Target. Remainder of Universe Amazon.com AMZN: Buy, $80 Price Target. Priceline.com PCLN: Neutral, $60 Price Target. eBay EBAY: Buy, $25 Price Target. GSI Commerce GSIC: Buy, $17 Price Target. ValueClick VCLK: Neutral, $11 Price Target. Expedia EXPE: Neutral, $12 Price Target. Drugstore.com DSCM: Buy, $2.25 Price Target. Glu Mobile GLUU: Buy, $2.25 Price Target. Yahoo! YHOO: Neutral, $15 Price Target. Bankrate RATE: Neutral, $35 Price Target. WebMD Health WBMD: Neutral, $29 Price Target. Netflix NFLX: Neutral, $25 Price Target. Marchex MCHX: Neutral, $10 Price Target. IAC/InterActiveCorp IACI: Neutral, $20 Price Target. Orbitz OWW: Neutral, $5 Price Target.

Our Internet Coverage Universe in Preferred Rank Order;

Top Picks

Google GOOG: Buy, $650 Price Target.

Omniture OMTR: Buy, $24 Price Target.

Remainder of Universe

Amazon.com AMZN: Buy, $80 Price Target.

Priceline.com PCLN: Neutral, $60 Price Target.

eBay EBAY: Buy, $25 Price Target.

GSI Commerce GSIC: Buy, $17 Price Target.

ValueClick VCLK: Neutral, $11 Price Target.

Expedia EXPE: Neutral, $12 Price Target.

Drugstore.com DSCM: Buy, $2.25 Price Target.

Glu Mobile GLUU: Buy, $2.25 Price Target.

Yahoo! YHOO: Neutral, $15 Price Target.

Bankrate RATE: Neutral, $35 Price Target.

WebMD Health WBMD: Neutral, $29 Price Target.

Netflix NFLX: Neutral, $25 Price Target.

Marchex MCHX: Neutral, $10 Price Target.

IAC/InterActiveCorp IACI: Neutral, $20 Price Target.

Orbitz OWW: Neutral, $5 Price Target.

Internet Coverage Universe – Estimates Source: Company reports, Banc of America Securities LLC estimates.

Internet Coverage Universe – Valuation Source: Company reports, Banc of America Securities LLC estimates.

Advertising & Related Services

Consumers are shifting their time spent toward the Internet… Media consumption on the internet is taking share from other channels, particularly newspapers and magazines… … and we believe this trend will continue, if not accelerate, as waves of younger tech-savvy generations displace older generations.

Media consumption on the internet is taking share from other channels, particularly newspapers and magazines…

… With Internet user penetration rising globally… US penetration is already high for a large country, but isn’t completely mature. Some of the largest countries in Europe have room to grow (Germany, France, UK, Italy). Latin America in particular could see strong growth over the next several years.

US penetration is already high for a large country, but isn’t completely mature.

Some of the largest countries in Europe have room to grow (Germany, France, UK, Italy).

Latin America in particular could see strong growth over the next several years.

… And where eyeballs go, advertisers follow. Following consumers, advertisers have shifted their budget mix toward the internet. Most other channels have been impacted to some extent, with Outdoor and Cinema being exceptions

Following consumers, advertisers have shifted their budget mix toward the internet.

Most other channels have been impacted to some extent, with Outdoor and Cinema being exceptions

Bandwidth Stats Reflects Internet Utilization…

BofA Online Advertising Forecast The U.S. online advertising industry is estimated to have grown 25.6% to $21.2B in ’07, and we are forecasting a 14.6% 3-yr CAGR. Source: IAB, Universal McCann Banc of America Securities LLC Internet Research Estimates

The U.S. online advertising industry is estimated to have grown 25.6% to $21.2B in ’07, and we are forecasting a 14.6% 3-yr CAGR.

The Online Advertising Value Chain: The Players Source: Banc of America Securities LLC Internet Research Large advertisers hire online agencies for branded and search marketing services Ad agencies such as aQuantive, 24/7 Real Media & Digitas design ad creative and purchase ad inventory from ad networks and publishers Ad Networks like Advertising.com and ValueClick aggregate web sites, sharing ad revenue with publishers, while technology such as ad servers executive campaigns and collect data. Sites like Google, Yahoo!, MSN, MySpace , eBay , smaller publishers and blogs Advertisers Online Agencies Ad Networks, Ad Serving & Other Technology Web Sites / Publishers Users

The Online Advertising Value Chain: How a Dollar Flows Source: WPP Group plc Publisher (Yahoo, NYTimes, Weather.com) $0.40 - $0.80 Agency $0.15 - $0.18 Ad Network (24/7, ad.com, ValueClick) $0.05 - $0.40 Search Engines (Google, Yahoo, MSN) $0.40 - $0.80 Comparison Engines (Shopping.com) $0.04 - 0.06 Other (eg, Mobile, IPTV, games) Ad Server & Technology (Atlas, DoubleClick, 24/7, AdTech) $0.01 - $0.02 Advertiser $1.00

Trends that matter for online advertisers include… Fragmentation of Audiences Unlike traditional media, Internet content is spread across a very “long tail” of publisher sites Long tail keeps getting longer, thanks to user generated sites and social networks Marketers inability to efficiently reach audiences across these many sites has lead to the rise of Ad Networks Social Media / User-generated Content “ Web 2.0” still difficult to monetize, though advertiser comfort level likely to increase over time Social network ad spending expected to grow from $920MM in 2007 to $2.6B in 2012 3 3. Video Sight, Sound & Motion: video is the ultimate ad format on the web, with 2x the interaction of static ads 1 US advertisers spent only $424MM in 2007 2 on video ads (2% of total spend) Mobile (see “The Mobile Internet” section for deep dive on the subject) Very early stages in the U.S., while Europe/Asia further along World-wide mobile advertising estimated at $2.7B in 2007 growing to $9.5B in 2011 4 Catalysts: Selection/Pricing of devices, data availability (3G), open platform (Android, Symbian, etc) Local Advertising Gaining traction via search (Google Maps/Yahoo Local), though significant unrealized potential remains Local SMB’s are focused on running their business, not the web, and over 50% do not have websites 5 Potential Catalysts: Mobile web/GPS devices. Still waiting on Click-to-Call, but not holding our breadth 5 Online Advertising Trends to Focus On Fragmentation of Audiences Unlike traditional media, Internet content is spread across a very “long tail” of publisher sites Long tail keeps getting longer, thanks to user generated sites and social networks Marketers inability to efficiently reach audiences across these many sites has lead to the rise of Ad Networks Sources: 1 DoubleClick, 2 IAB, 3 eMarketer May ’08, 4 eMarketer/EJL Wireless Research, 5 Borrell Associates

Trends that matter for online advertisers include…

Fragmentation of Audiences

Unlike traditional media, Internet content is spread across a very “long tail” of publisher sites

Long tail keeps getting longer, thanks to user generated sites and social networks

Marketers inability to efficiently reach audiences across these many sites has lead to the rise of Ad Networks

Social Media / User-generated Content

“ Web 2.0” still difficult to monetize, though advertiser comfort level likely to increase over time

Social network ad spending expected to grow from $920MM in 2007 to $2.6B in 2012 3

3. Video

Sight, Sound & Motion: video is the ultimate ad format on the web, with 2x the interaction of static ads 1

US advertisers spent only $424MM in 2007 2 on video ads (2% of total spend)

Mobile (see “The Mobile Internet” section for deep dive on the subject)

Very early stages in the U.S., while Europe/Asia further along

World-wide mobile advertising estimated at $2.7B in 2007 growing to $9.5B in 2011 4

Catalysts: Selection/Pricing of devices, data availability (3G), open platform (Android, Symbian, etc)

Local Advertising

Gaining traction via search (Google Maps/Yahoo Local), though significant unrealized potential remains

Local SMB’s are focused on running their business, not the web, and over 50% do not have websites 5

Potential Catalysts: Mobile web/GPS devices. Still waiting on Click-to-Call, but not holding our breadth

Fragmentation of Audiences

Unlike traditional media, Internet content is spread across a very “long tail” of publisher sites

Long tail keeps getting longer, thanks to user generated sites and social networks

Marketers inability to efficiently reach audiences across these many sites has lead to the rise of Ad Networks

Trends that matter for online advertisers include… Fragmentation of Audiences Unlike traditional media, internet content is spread across a very “long tail” of publisher sites. Marketers inability to efficiently reach audiences across these many sites has lead to the rise of Ad Networks. Long tail keeps getting longer, thanks to user generated sites and social networks. Social Media / User-generated Content “ Web 2.0” still difficult to monetize, though advertiser comfort level likely to increase over time. Social network ad spending expected to grow from $920MM in 2007 to $2.6B in 2012 3 . 3. Video Sight, Sound & Motion: video is the ultimate ad format on the web, with 2x the interaction of static ads 1 . US advertisers spent only $424MM in 2007 2 on video ads (2% of total spend). Mobile (see “The Mobile Internet” section for deep dive on the subject) Very early stages in the U.S., while Europe/Asia further along. World-wide mobile advertising estimated at $2.7B in 2007 growing to $9.5B in 2011 4 . Catalysts: Selection/Pricing of devices, data availability (3G), open platform (Android, Symbian, etc). Local Advertising Gaining traction via search (Google Maps/Yahoo Local), though significant unrealized potential remains. Local SMB’s are focused on running their business, not the web, and over 50% do not have websites 5 . Potential Catalysts: Mobile web/GPS devices. Still waiting on Click-to-Call, but not holding our breadth. 5 Online Advertising Trends to Watch Sources: 1 DoubleClick, 2 IAB, 3 eMarketer May ’08, 4 eMarketer/EJL Wireless Research, 5 Borrell Associates,

Trends that matter for online advertisers include…

Fragmentation of Audiences

Unlike traditional media, internet content is spread across a very “long tail” of publisher sites.

Marketers inability to efficiently reach audiences across these many sites has lead to the rise of Ad Networks.

Long tail keeps getting longer, thanks to user generated sites and social networks.

Social Media / User-generated Content

“ Web 2.0” still difficult to monetize, though advertiser comfort level likely to increase over time.

Social network ad spending expected to grow from $920MM in 2007 to $2.6B in 2012 3 .

3. Video

Sight, Sound & Motion: video is the ultimate ad format on the web, with 2x the interaction of static ads 1 .

US advertisers spent only $424MM in 2007 2 on video ads (2% of total spend).

Mobile (see “The Mobile Internet” section for deep dive on the subject)

Very early stages in the U.S., while Europe/Asia further along.

World-wide mobile advertising estimated at $2.7B in 2007 growing to $9.5B in 2011 4 .

Catalysts: Selection/Pricing of devices, data availability (3G), open platform (Android, Symbian, etc).

Local Advertising

Gaining traction via search (Google Maps/Yahoo Local), though significant unrealized potential remains.

Local SMB’s are focused on running their business, not the web, and over 50% do not have websites 5 .

Potential Catalysts: Mobile web/GPS devices. Still waiting on Click-to-Call, but not holding our breadth.

Google Inc. (GOOG: Buy, $650 Target) Google is a global technology leader focused on giving people access to information. GOOG generates 99% of revenues by delivering relevant online advertising to its users, mainly through sponsored search ads. Portfolio Manager’s Summary Our 12-month thesis on the stock . We believe GOOG's search share and monetization gains will likely continue. The company remains extremely well-positioned to benefit from the growth in display and branded advertising on the Internet. In addition, we believe that GOOG's industry leading pay-for-performance model will continue to support its growth in international markets. We also see significant opportunities for Google in the mobile and local advertising spaces. Upcoming catalysts. 1) General catalysts include continued search market share growth; 2) further monetization improvements; 3) forays into branded advertising, video, local and mobile integration worldwide; 4) anticipated synergies from acquisition of DoubleClick, and 5) continued product innovation. 12-month valuation. Our TP of $650 is based on our DCF and implies an 17x '09E EBITDA multiple. Risks to our call. A general slowdown in the economy and overall advertising spending; litigation risk from video content owners; the pursuit of non-core endeavors that have the potential to impact the margin structure of the business model; and increasing proliferation of click-fraud. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

Yahoo! Inc. (YHOO: Neutral, $15 Target) Yahoo! Inc. is a global Internet communications, commerce and media company that offers its services to more than 400 million individuals each month. Yahoo! derives the majority of its revenue from selling online search and branded advertising. Portfolio Manager’s Summary Our 12-month thesis on the stock. While we believe YHOO remains a company in transition, the company's fundamentals appear to be deteriorating due to a weaker ad environment. Upcoming catalysts. Approval or implementation of outsourcing deal with Google; earnings announcements 12-month valuation. Our $15 TP is based on a 7x ’09E EV/EBITDA multiple, which is consistent with our 5% ’08E - '11E EBITDA CAGR. Risks to our call. Sooner than expected improvement in online display ad environment; Renewed deal talks with MSFT. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

IAC/InterActiveCorp (IACI: Neutral, $20 Target) Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe IACI has a number of valuable online properties that are well-diversified across online advertising, eCommerce, and subscription revenue. In particular, we are positive on the company's leadership positions in online ticketing, personals, and timeshare exchanges, as well as continued innovation at Ask.com. However, we believe weakness in HSN will likely continue to weigh on the stock in the near term, given that HSN's new management team is still implementing and adjusting its merchandising strategy and its decision to absorb higher shipping costs. While some of HSN's issues are company-specific, we believe it may also be suffering from broader consumer trends toward online retailers like Amazon.com ("Amazon Risk"). Upcoming catalysts. Updates on the spin-off; News/updates around turnaround in HSN and Lending Tree; progress on TicketMaster's negotiations with LiveNation; and comScore and other search metrics indicating the effectiveness of the new Ask.com interface and marketing campaign with market share gains, increased search engagement (user retention and frequency). 12-month valuation. Our TP of $20 is based on our DCF and implies a 6x '09 EBITDA multiple. Risks to our call. Consumer shifts from TV to online purchasing; significant competition in search from GOOG, YHOO and MSFT; continued weakness in mortgage industry could continue to pressure LendingTree. IAC/InterActiveCorp operates a portfolio of brands in the retailing, ticketing, personals, media, financial services, real estate, and teleservices industries worldwide. Its brands include HSN, Ticketmaster, Match.com, LendingTree, CitySearch, and more recently Cornerstone and Ask.com. The company expects to spin-off 5 divisions (IAC, LendingTree, HSN, Interval, Ticketmaster) in Q3.

Portfolio Manager’s Summary

Our 12-month thesis on the stock. We believe IACI has a number of valuable online properties that are well-diversified across online advertising, eCommerce, and subscription revenue. In particular, we are positive on the company's leadership positions in online ticketing, personals, and timeshare exchanges, as well as continued innovation at Ask.com. However, we believe weakness in HSN will likely continue to weigh on the stock in the near term, given that HSN's new management team is still implementing and adjusting its merchandising strategy and its decision to absorb higher shipping costs. While some of HSN's issues are company-specific, we believe it may also be suffering from broader consumer trends toward online retailers like Amazon.com ("Amazon Risk").

Upcoming catalysts. Updates on the spin-off; News/updates around turnaround in HSN and Lending Tree; progress on TicketMaster's negotiations with LiveNation; and comScore and other search metrics indicating the effectiveness of the new Ask.com interface and marketing campaign with market share gains, increased search engagement (user retention and frequency).

12-month valuation. Our TP of $20 is based on our DCF and implies a 6x '09 EBITDA multiple.

Risks to our call. Consumer shifts from TV to online purchasing; significant competition in search from GOOG, YHOO and MSFT; continued weakness in mortgage industry could continue to pressure LendingTree.

WebMD Health Corp. (WBMD: Neutral, $29 Target) Source: Company reports, FactSet, Banc of America Securities LLC Internet Research WebMD Health Corp., provides health information services to consumers, physicians and other healthcare professionals through its public and private online portals, and health-focused publications. Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe that WebMD is a best of breed online publisher, well positioned to capture the secular growth of online advertising. Despite this view, we believe WBMD has reached a point where its growth is no longer great enough to compensate for advertiser budget delays or other project timing issues that impact revenue, such as those that led to the pre-announcements in 2H07. With visibility throughout '08 likely to be reduced compared to prior years and competition in the space increasing, we remain Neutral on the shares. Upcoming catalysts. Completion of QualityHealth acquisition. 4Q Earnings 12-month valuation. TP of $26 is based on our 10-year DCF, and reflects a 9x '09E EBITDA multiple, compared to our 3-yr EBITDA CAGR of 15%. Risks to our call. Risks include: 1) Continued challenges to near-term revenue visibility; 2) Growth in online advertising differs from forecast; 3.) Growth in private portals business differs from expectations; 4.) Competition from larger and better capitalized players; 5.) Acquisition integration risks.

Portfolio Manager’s Summary

Our 12-month thesis on the stock. We believe that WebMD is a best of breed online publisher, well positioned to capture the secular growth of online advertising. Despite this view, we believe WBMD has reached a point where its growth is no longer great enough to compensate for advertiser budget delays or other project timing issues that impact revenue, such as those that led to the pre-announcements in 2H07. With visibility throughout '08 likely to be reduced compared to prior years and competition in the space increasing, we remain Neutral on the shares.

Upcoming catalysts. Completion of QualityHealth acquisition. 4Q Earnings

12-month valuation. TP of $26 is based on our 10-year DCF, and reflects a 9x '09E EBITDA multiple, compared to our 3-yr EBITDA CAGR of 15%.

Risks to our call. Risks include: 1) Continued challenges to near-term revenue visibility; 2) Growth in online advertising differs from forecast; 3.) Growth in private portals business differs from expectations; 4.) Competition from larger and better capitalized players; 5.) Acquisition integration risks.

ValueClick (VCLK: Neutral, $10 Target) ValueClick is a global, online marketing services company offering a suite of products and services for marketers, who advertise and sell their products through various online marketing channels. The company operates in four segments viz. Media, Affiliate Marketing, Comparison Shopping, and Technology. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe ValueClick's share price is likely to continue undervaluing the company's assets over the short term, as the company has exposure to the weak online display ad industry with few positive near term catalysts. Longer term, we see no reason to prevent the stock from performing in line with the broader eCommerce and Online Advertising sectors, once cyclical challenges have passed. We note many aspects of the internet continue to evolve and VCLK's long term performance will also depend in large part on the execution of Management. 12-month valuation. Our $10 TP is based on a 10-yr DCF & implies a 6-7x multiple on our '09 EBITDA est. Risks to our call. Longer term, we believe ad exchanges could pressure the cost of inventory for VCLK's ad network. With respect to affiliate marketing, there may be continued risk that large clients may take the business in-house similar to eBay. For comparison shopping, we believe the greatest business risk is the reliance on search engines to drive traffic. Broadly speaking, a significant slowdown in US online advertising caused by macroeconomic factors could negatively impact VCLK's business.

Portfolio Manager’s Summary

Our 12-month thesis on the stock. We believe ValueClick's share price is likely to continue undervaluing the company's assets over the short term, as the company has exposure to the weak online display ad industry with few positive near term catalysts. Longer term, we see no reason to prevent the stock from performing in line with the broader eCommerce and Online Advertising sectors, once cyclical challenges have passed. We note many aspects of the internet continue to evolve and VCLK's long term performance will also depend in large part on the execution of Management.

12-month valuation. Our $10 TP is based on a 10-yr DCF & implies a 6-7x multiple on our '09 EBITDA est.

Risks to our call. Longer term, we believe ad exchanges could pressure the cost of inventory for VCLK's ad network. With respect to affiliate marketing, there may be continued risk that large clients may take the business in-house similar to eBay. For comparison shopping, we believe the greatest business risk is the reliance on search engines to drive traffic. Broadly speaking, a significant slowdown in US online advertising caused by macroeconomic factors could negatively impact VCLK's business.

Omniture (OMTR: Buy, $24 Target) Omniture is the leading provider of web analytics solutions that helps websites collect, store, measure, and optimize their users’ click behavior. The company’s roster of clients includes some of the largest web companies such as AOL, eBay, and MSN.com. Source: Company reports, Banc of America LLC Internet Research estimates WW Web Analytics Market Share (2007) Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe OMTR is at the sweet spot of three online growth trends: 1) Internet / Mobile Internet usage; 2) online advertising (+23% 3-yr CAGR) and eCommerce (+20%) growth; 3) adoption of on-demand business optimization software (+22%). We believe the Web Analytics opportunity alone is worth over $3B-$3.5B. Upcoming catalysts. Major new client announcements or existing client up-sells; Earnings announcements from large online media and eCommerce players; eCommerce figures from the Dept of Commerce. 12-month valuation. Our $24 TP is based on our DCF which assumes an 11.5% WACC and 3.5% perpetuity growth rate. Our TP implies a 21x '09E EBITDA multiple relative to 35% '08-11E EBITDA CAGR. Risks to our call. Largest risks include competition from a collection of less expensive (albeit less robust) tools such as Google Analytics and Yahoo!'s IndexTools, uncertainty about 2008 advertising spend and integration risks around the recent Visual Sciences acquisition.

Bankrate (RATE: Neutral, $35 Target) Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Bankrate owns and operates an Internet-based consumer banking and personal finance network. Their flagship site, Bankrate.com, is one of the web's leading aggregators of information on more than 300 financial products and fees. Additionally, Bankrate provides financial applications and information to a network of online distribution partners. Portfolio Manager’s Summary Our 12-month thesis on the stock. We view Bankrate as a best of breed online publisher, with a strong management team, attractive business model and strategic position to benefit from the secular growth of Internet advertising. We do not believe RATE is immune to major advertising budget cuts and could be pressured in the event such magnitude of cuts become reality. Longer term, we believe the company should be a key holding for Internet investors, with many opportunities for organic growth as well as an attractive strategic asset for larger publishers. 12-month valuation. Our $35 TP is based on our DCF analysis, and reflects a 9-10x '09E EV/EBITDA multiple compared to our 3-yr EBITDA CAGR of 21%. Risks to our call. A potential slowing macro-economic environment is our chief concern, as RATE has demonstrated vulnerability to advertising budget cuts. We believe Bankrate could be a potential strategic asset for larger publishers, and it could be acquired. Bankrate could make acquisitions related to new channels/content or technology and face integration risks.

Marchex (MCHX: Neutral, $10 Target) Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. While we like MCHX's exposure to fast-growing local online advertising we remain on the sidelines due to a number of factors, including 1) dependence on YHOO for distribution; 2) general competition on a variety of fronts; 3) cost of integrating and marketing Open List; 4) ad exchanges potentially diminishing the value proposition to advertisers and publishers; 5) the constantly changing search engine landscape and 6) concentration of ownership 7) higher than expected spending required to build out its ad platform for the local market, which is still fairly nascent online. 12-month valuation. Our TP of $10 is based on our 10-year DCF, which assumes a cost of capital of 11.5% and growth in perpetuity of 5.0% (implies a 9x terminal EBITDA multiple). Risks to our call. 1) Panama monetization improvements larger-than-expected; 2) Open List integration beyond initial 100,000 sites occurs faster-than-expected or with faster and more effective resultant monetization; 4) faster-than-expected search marketing growth and 5) potential downside from the loss of contextual advertising affiliates resulting from strong competition. Marchex delivers local online traffic to merchant advertisers and helps publishers monetize their websites. It provides merchants with performance-based advertising and search marketing services allowing them to market across online distribution channels (search, shopping engines, directories, selected websites) while giving publishers access to advertisers.

Portfolio Manager’s Summary

Our 12-month thesis on the stock. While we like MCHX's exposure to fast-growing local online advertising we remain on the sidelines due to a number of factors, including 1) dependence on YHOO for distribution; 2) general competition on a variety of fronts; 3) cost of integrating and marketing Open List; 4) ad exchanges potentially diminishing the value proposition to advertisers and publishers; 5) the constantly changing search engine landscape and 6) concentration of ownership 7) higher than expected spending required to build out its ad platform for the local market, which is still fairly nascent online.

12-month valuation. Our TP of $10 is based on our 10-year DCF, which assumes a cost of capital of 11.5% and growth in perpetuity of 5.0% (implies a 9x terminal EBITDA multiple).

Risks to our call. 1) Panama monetization improvements larger-than-expected; 2) Open List integration beyond initial 100,000 sites occurs faster-than-expected or with faster and more effective resultant monetization; 4) faster-than-expected search marketing growth and 5) potential downside from the loss of contextual advertising affiliates resulting from strong competition.

eCommerce

eCommerce Industry Overview U.S. eCommerce was a $128B industry in 2007, and grew ~20% as many offline retailers pursued a multi-channel strategy. In 2008, we are forecasting slower growth of 14.5%, impacted by a slowdown in consumer spending. It has been long proposed that high gas prices could benefit online retail, as consumers continue to shop while avoiding the roads. While this may prove to be a benefit for eCommerce, it should also be noted that fuel prices negatively impact shipping costs for online products, and we have not factored any benefit from this concept into our conservative estimate. Source: US Dept of Commerce, Banc of America Securities LLC Internet Research

Amazon.com (AMZN: Buy, $80 Target) Amazon.com is a leading online retailer, capitalizing on an online model and technology to offer personalized services and the lowest possible prices to its customers. Amazon operates six branded global retail websites throughout the world, a movie database through www.imdb.com, outsourced eCommerce solutions and web services through Amazon Web Services (AWS). Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe AMZN is a best-of-breed eCommerce name with a solid record of execution and the company should likely continue taking share from offline and online retailers, though a weaker consumer is the biggest near-term risk to the name. Upcoming catalysts. 1) Traction around MP3 downloads, Amazon Autos and Toy & Baby Stores, as well as other potential new categories or selections within categories; 2) improvements to Amazon Unbox and other digital offerings (both in terms of technology and selection), driving increased traction and usage; 3) Further expansion of product selection and launches of new businesses such as Endless.com; and 4) Continued adoption of EC2, S3, FPS and other Web Services. 5) Fulfillment by Amazon for 3rd party sellers. 12-month valuation. Our $80 TP is based on 10-yr DCF and implies a 25-30x FCF multiple Risks to our call. Risks include: 1) the macro environment and its impact on consumer spending; 2) operating margin pressure due to incremental Fulfillment and Tech & Content spend on Unbox and key web services or spend around international/Amazon Joyo; 3) increasing competition for the in-season retail market; 4) heightened levels of Capex needed for Unbox / EC2 / S3 / Amazon Joyo scale; 5) continued uptake of Super Saver Shipping & Amazon Prime without the corresponding scale / leverage; and 6) competition in digital downloads from iTunes. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

eBay Inc. (EBAY: Buy, $25 Target) eBay provides online marketplaces for selling goods and services, online payments services and online communication to individuals and businesses through 3 main businesses: eBay Marketplaces, Payments (PayPal) and Communications (Skype). Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe the next 12 months will see many changes for eBay, as the company will likely be forced to evolve more quickly than in the past to keep pace with a shifting competitive landscape and offset a maturing core business. We believe management is ready to make the challenging, but necessary, decisions that will maintain eBay as a core holding for long-term investors seeking to benefit from the secular growth of the Internet, both in the U.S. and internationally. We expect to see many of these decisions throughout the next 12 months, and believe the stock could see increased volatility while the core business undergoes this transition. Lastly, we view eBay as a potentially defensive stock among the sector during economic downturns, as it is the primary channel cost-conscious consumers can use to purchase and sell used goods. 12-month valuation. Our $25 TP is based on our 10-yr DCF model, and represents an EV/EBITDA multiple of 9-10x our '09 EBITDA est, and a 16x P/E on our '09E pro forma EPS. Risks to our call. (1) Greater than expected economic impact, (2) increased volatility in listing tracking could impact shares, (3) Our assumptions for take rate or conversion rates could be inaccurate, affecting revenue expectations. (4) Competition from AMZN and Craig's List, (5) Significant M&A activity, such as a divestiture of Skype or acquisition of foreign competitors.

Portfolio Manager’s Summary

Our 12-month thesis on the stock. We believe the next 12 months will see many changes for eBay, as the company will likely be forced to evolve more quickly than in the past to keep pace with a shifting competitive landscape and offset a maturing core business. We believe management is ready to make the challenging, but necessary, decisions that will maintain eBay as a core holding for long-term investors seeking to benefit from the secular growth of the Internet, both in the U.S. and internationally. We expect to see many of these decisions throughout the next 12 months, and believe the stock could see increased volatility while the core business undergoes this transition. Lastly, we view eBay as a potentially defensive stock among the sector during economic downturns, as it is the primary channel cost-conscious consumers can use to purchase and sell used goods.

12-month valuation. Our $25 TP is based on our 10-yr DCF model, and represents an EV/EBITDA multiple of 9-10x our '09 EBITDA est, and a 16x P/E on our '09E pro forma EPS.

Risks to our call. (1) Greater than expected economic impact, (2) increased volatility in listing tracking could impact shares, (3) Our assumptions for take rate or conversion rates could be inaccurate, affecting revenue expectations. (4) Competition from AMZN and Craig's List, (5) Significant M&A activity, such as a divestiture of Skype or acquisition of foreign competitors.

GSI Commerce (GSIC: Buy, $17 Target) Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. Growth will be driven in the near term by investments made in the operating platform, new partner additions and deeper penetration of existing partner relationships. We believe GSI Commerce is positioned to capture additional eCommerce outsourcing business as a result of its accumulated expertise in the space and scalable solutions. Upcoming catalysts. 1) Partner announcements and "go-lives"; 2) Further client penetration with additional service offering announcements & cross-sells; 3) Expansion into additional product categories; 4) Macro announcements around domestic eCommerce growth (US Department of Commerce data, comScore traffic data). 12-month valuation. Our TP of $17, is based on our 10-year DCF, and implies a 11x multiple on our '09 EBITDA estimate compared to our 3-yr EBITDA CAGR of 20%. Risks to our call. Risks Include: 1) Unanticipated rise in partner launch costs; 2) A slowing eCommerce or eCommerce outsourcing market; 3) Concentrated supplier and revenue streams; 4) Pressure from better capitalized competitors such as Amazon.com. 5) Potentially weaker Palm or other electronic sales; 6) Further slowdown in consumer spending. GSIC is a leading eCommerce outsourcing solution that provides retailers, manufacturers, entertainment companies and sports organizations with technology, logistics, customer care and marketing services to operate eCommerce businesses.

Drugstore.com (DSCM: Buy, $2.25 Target) Drugstore.com, Inc. is an online provider of health, beauty, vision, and pharmacy products. It offers health, beauty, household and other non-prescription products and prescription medications through its websites. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe microcap name DSCM has the potential to become a consistently profitable eCommerce company, as Management's strategy to expand into higher margin health & beauty products appears to have traction. The company has an experienced Management team, attractive consumer offerings and is expanding its reach through partnerships, all of which should bode well for growth. Our primary concerns are a weakening economy and increasing competition from other eTailers / online drug stores channels such as CVS and Walgreens. 12-month valuation. Our $2.25 target is based on our 10-yr DCF analysis and reflects ~13x our '09E EBITDA estimate. Risks to our call. A slowdown in consumer spending impacts growth and margins. DSCM ramps profitability and scale more slowly than we anticipate due to competition from eCommerce players or rival drugstores.

Portfolio Manager’s Summary

Our 12-month thesis on the stock. We believe microcap name DSCM has the potential to become a consistently profitable eCommerce company, as Management's strategy to expand into higher margin health & beauty products appears to have traction. The company has an experienced Management team, attractive consumer offerings and is expanding its reach through partnerships, all of which should bode well for growth. Our primary concerns are a weakening economy and increasing competition from other eTailers / online drug stores channels such as CVS and Walgreens.

12-month valuation. Our $2.25 target is based on our 10-yr DCF analysis and reflects ~13x our '09E EBITDA estimate.

Risks to our call. A slowdown in consumer spending impacts growth and margins. DSCM ramps profitability and scale more slowly than we anticipate due to competition from eCommerce players or rival drugstores.

Online Entertainment

Online Entertainment – Internet Distribution is in Early Stage Online distribution of feature films and television programs is in it’s infancy. The share of dollars film studios receive from the internet is currently immaterial in the $18B U.S. industry. Though several players are pursuing one of three business model approaches to online distribution of this content, challenges such as rights clearances, guild uncertainties and buyers of old media are impeding progress. Source: Netflix, Inc.

Online Entertainment – Business Model Segments Three business models for monetizing online content distribution are developing: unlimited subscription, pay per view/download to own, and ad-supported video. Subscription Pay per View / Download to Own Ad-supported Video Monthly cost, includes DVD rental Large selection, long tailed content, excludes hot new releases $4 Pay per view, 24 hour viewing window $15 Download to own Limited selection, but includes hot new releases Free Mostly TV shows and older movie titles

Monthly cost, includes DVD rental

Large selection, long tailed content, excludes hot new releases

$4 Pay per view, 24 hour viewing window

$15 Download to own

Limited selection, but includes hot new releases

Free

Mostly TV shows and older movie titles

Netflix (NFLX: Neutral, $25 Target) Netflix is the world’s largest online movie rental subscription service provider, giving monthly subscribers access to 65,000+ movie, television, and other DVD titles usually with 1-day delivery. In addition, the company also offers personalized movie recommendations, social networking and other features at www.netflix.com. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe Netflix is well positioned as the leading online movie rental service with a nimble cost structure. Longer term, we believe the future holds many uncertainties, including the number and strength of competition, the winning business model if one should emerge, and the timing within which the market for online content evolves. As a subscription model, we believe earnings are relatively well positioned for a consumer slowdown given it offers one of the cheapest forms of entertainment, but also remain concerned about near term risks, including greater than expected economic pressure and/or potential pricing pressure from rivals. 12-month valuation. We view NFLX shares as fairly valued at current price levels. Our $25 TP is based on a 10-yr DCF and implies an 18x multiple on our '09 EPS estimate or about 1.6x PEG. Our target implies a free cash flow yield of roughly 4%. Risks to our call. Changing market dynamics for at-home entertainment (VOD, Digital Downloads) and stronger than expected subscriber numbers. Further risks to the downside include greater than expected economic or competitive pressure and digital download / content costs that prove higher than expected.

Online Travel

US Online Agencies Are Maturing, Though Europe Growth Remains Strong The continued shift in consumer’s use of the online channel to purchase travel products and services is driving growth of the online travel industry both domestically and in Europe. US We estimate the current market for online travel to be roughly $86B, with a 4 year CAGR of 11% through 2011. Europe We estimate the current market for online travel to be roughly $63B, with a 4 year CAGR of 15% through 2011. Source: PhoCusWright and Banc of America LLC Internet Research estimates

Suppliers Taking Greater Share of Online Market Over the past several years, suppliers such as airlines and hotel companies have pursued a “Direct-to-Consumer” strategy of distributing their inventory through their own branded websites. Suppliers are highly incentivized to do so, since they can avoid paying fees to intermediaries throughout the distribution chain, such as the Global Distribution Systems (GDS’s) and travel agents like PCLN and EXPE. We expect this trend to continue over the long term, though we do not believe agencies will be disintermediated, as a portion of travelers are likely to continue avoiding the process of shopping on various (and multiple) supplier sites -- for example, business travel customers and leisure travelers seeking packages… Source: PhoCusWright and Banc of America LLC Internet Research estimates

Over the past several years, suppliers such as airlines and hotel companies have pursued a “Direct-to-Consumer” strategy of distributing their inventory through their own branded websites.

Suppliers are highly incentivized to do so, since they can avoid paying fees to intermediaries throughout the distribution chain, such as the Global Distribution Systems (GDS’s) and travel agents like PCLN and EXPE.

We expect this trend to continue over the long term, though we do not believe agencies will be disintermediated, as a portion of travelers are likely to continue avoiding the process of shopping on various (and multiple) supplier sites -- for example, business travel customers and leisure travelers seeking packages…

Priceline.com (PCLN: Neutral, $60 Target) Priceline.com operates an online travel company that offers range of travel services, including airline tickets, hotel rooms, car rentals, vacation packages, cruises and destination services. It offers these services in a price-disclosed manner and a unique ‘Name Your Own Price’ system. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe PCLN's Mgmt has a focused strategy on Int'l expansion and gross profit growth, based on Domestic share gains and capturing the secular growth in Europe. Over the near term however, we believe severe macro headwinds are likely to continue weighing on shares, though we believe long-term investors seeking well-positioned and well-executed companies should consider PCLN a core internet holding. 12-month valuation. Our TP of $60 is based on our 10-year DCF, and implies an 11-12x '09E earnings multiple. Risks to our call. Global recession pressures consumer travel beyond our expectations. PCLN also faces increasing competition from both suppliers and OTAs. Other disruptions of the travel industry, including terrorism or health epidemics, would also have an adverse effect.

Portfolio Manager’s Summary

Our 12-month thesis on the stock. We believe PCLN's Mgmt has a focused strategy on Int'l expansion and gross profit growth, based on Domestic share gains and capturing the secular growth in Europe. Over the near term however, we believe severe macro headwinds are likely to continue weighing on shares, though we believe long-term investors seeking well-positioned and well-executed companies should consider PCLN a core internet holding.

12-month valuation. Our TP of $60 is based on our 10-year DCF, and implies an 11-12x '09E earnings multiple.

Risks to our call. Global recession pressures consumer travel beyond our expectations. PCLN also faces increasing competition from both suppliers and OTAs. Other disruptions of the travel industry, including terrorism or health epidemics, would also have an adverse effect.

Expedia (EXPE: Neutral, $12 Target) Expedia is an online travel company, that was created as a result of a spin-off from InterActiveCorp in 2005. Expedia has operations across North America, Europe and some pockets of Asia. The company has created a global travel marketplace used by a range of leisure and corporate travelers, offline travel agents and service providers. It offers travel products and services such as airline flights, hotel stays, car rentals, lodging properties, destination services, and cruises. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. We believe EXPE, as the best capitalized competitor in the online travel space, is well positioned to capture market share over the long term provided Mgmt continues to execute. Over the near term however, we believe severe macro head winds are likely to continue weighing on shares. 12-month valuation. Our $12 TP is based on our 10-yr DCF and implies a 10-11x multiple on our '09 earnings estimate. Risks to our call. 1) The global travel market could be negatively impacted by economic downturns, airline M&A activity, terrorism or health-related threats; 2) Increased competition from suppliers could pressure available inventory, margins, and overall growth; 3) Changes in the travel distribution value chain could negatively impact EXPE; 4) Continued integration risk of current and future acquisitions.

Orbitz (OWW: Neutral, $5 Target) Orbitz is an online travel company that offers leisure and business travelers a range of travel products, including air tickets, hotels, vacation packages, car rentals, cruises, travel insurance and destination services from over 80,000 suppliers worldwide. Brands include Orbitz, CheapTickets, ebookers, AsiaHotels, HotelClub, RatesToGo, Flairview, GORP.com and Away.com. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. While we believe opportunities exist for OWW to increase its market share in both the domestic and European online travel markets, near term pressures from a global slowdown in travel are likely to impact results and weigh on shares, while competition intensifies. 12-month valuation. Our $5 PT is based on our 10-yr DCF and implies a 6-7x EV/EBITDA multiple on our '09 EBITDA estimate, compared to our 13% 3-yr EBITDA growth estimate. Risks to our call. 1) The global travel industry could be negatively impacted by economic downturns, terrorism and health-related threats. 2) OWW could become a potential acquisition target for a larger OTA competitor. 3) Debt level could restrict cash needed for working capital, M&A and other investments. 4) If Mgmt executes above our expectations for non-air and Europe booking penetration, shares could appreciate as the valuation gap between OWW and its competitors PCLN and EXPE closes faster than we anticipate. 5) Consolidation among airline suppliers could reduce disposable income of travelers.

Portfolio Manager’s Summary

Our 12-month thesis on the stock. While we believe opportunities exist for OWW to increase its market share in both the domestic and European online travel markets, near term pressures from a global slowdown in travel are likely to impact results and weigh on shares, while competition intensifies.

12-month valuation. Our $5 PT is based on our 10-yr DCF and implies a 6-7x EV/EBITDA multiple on our '09 EBITDA estimate, compared to our 13% 3-yr EBITDA growth estimate.

Risks to our call. 1) The global travel industry could be negatively impacted by economic downturns, terrorism and health-related threats. 2) OWW could become a potential acquisition target for a larger OTA competitor. 3) Debt level could restrict cash needed for working capital, M&A and other investments. 4) If Mgmt executes above our expectations for non-air and Europe booking penetration, shares could appreciate as the valuation gap between OWW and its competitors PCLN and EXPE closes faster than we anticipate. 5) Consolidation among airline suppliers could reduce disposable income of travelers.

The Mobile Internet

The Mobile Internet The Bull Case – Mobile Internet: The Next Online Frontier We anticipate that the Mobile Internet and Mobile Content should serve as one of the most significant growth drivers for online businesses in the next 1-4 years Current worldwide install base of wireless subscribers to PC’s is roughly 3-4:1, while worldwide mobile device penetration is still relatively low at 41% worldwide We believe consumer interest in mobile Internet access would likely be significantly greater if pages loaded faster and fees were reduced Mobile users appear to desire an experience on a mobile device that mirrors their desktops; the ability to easily create, share and collect content of all forms, with strong user interfaces, and with fast, ubiquitous access Advanced data network build-out is at an inflection point; 3G+ networks now markedly improving data transfer rates; other high bandwidth technologies are next Significant advancements in handsets / smartphones are also a key driver; we believe media consumption on 3G devices could be 3-4 times higher than 2.5G Limited content offerings utilizing one-way downstream delivery are not the answer; YouTube success is driven by the ability of users to view and interact with content

The Bull Case – Mobile Internet: The Next Online Frontier

We anticipate that the Mobile Internet and Mobile Content should serve as one of the most significant growth drivers for online businesses in the next 1-4 years

Current worldwide install base of wireless subscribers to PC’s is roughly 3-4:1, while worldwide mobile device penetration is still relatively low at 41% worldwide

We believe consumer interest in mobile Internet access would likely be significantly greater if pages loaded faster and fees were reduced

Mobile users appear to desire an experience on a mobile device that mirrors their desktops; the ability to easily create, share and collect content of all forms, with strong user interfaces, and with fast, ubiquitous access

Advanced data network build-out is at an inflection point; 3G+ networks now markedly improving data transfer rates; other high bandwidth technologies are next

Significant advancements in handsets / smartphones are also a key driver; we believe media consumption on 3G devices could be 3-4 times higher than 2.5G

Limited content offerings utilizing one-way downstream delivery are not the answer; YouTube success is driven by the ability of users to view and interact with content

The Mobile Internet - Why is the US so far behind? While North America has 3 competing mobile interfaces (GSM, CDMA, TDMA), Europe has a single mobile interface (GSM), which allows continuous coverage across various countries and among all mobile users North America was also initially limited in wireless data transfer capability across the three standards, thus limiting communications. This changed in 2002 with the launch of data interoperability Emerging Asian markets made the decision to build out wireless infrastructure versus miles of cable infrastructure, especially in geographically challenging areas such as China; setting the stage for robust wireless networks Network operators (carriers) maintain a very strong position in the US market, with approximately 30% of sales in 2004, and the largest retail operations numbering over 1000 outlets each* *Source: Informa Telecoms & Media

While North America has 3 competing mobile interfaces (GSM, CDMA, TDMA), Europe has a single mobile interface (GSM), which allows continuous coverage across various countries and among all mobile users

North America was also initially limited in wireless data transfer capability across the three standards, thus limiting communications. This changed in 2002 with the launch of data interoperability

Emerging Asian markets made the decision to build out wireless infrastructure versus miles of cable infrastructure, especially in geographically challenging areas such as China; setting the stage for robust wireless networks

Network operators (carriers) maintain a very strong position in the US market, with approximately 30% of sales in 2004, and the largest retail operations numbering over 1000 outlets each*

The Mobile Internet – The New Online Frontier? Many Internet Players Have Set Their Sights on the Mobile Internet…Google as an example Source: Company reports Many Internet companies, including GOOG, have mentioned that mobile would become a key driver of new business going forward; GOOG, YHOO and MSFT all discussed mobile opportunities at the 2008 CES GOOG continues to purchase technologies related to mobile software and released its Android platform to foster mobile content and applications development We highlight Google Maps for Mobile ( www.google.com/GMM ), already a very unique and useful on-deck application

Many Internet companies, including GOOG, have mentioned that mobile would become a key driver of new business going forward; GOOG, YHOO and MSFT all discussed mobile opportunities at the 2008 CES

GOOG continues to purchase technologies related to mobile software and released its Android platform to foster mobile content and applications development

We highlight Google Maps for Mobile ( www.google.com/GMM ), already a very unique and useful on-deck application

The Mobile Internet – Key Success Drivers What will drive success of the Mobile Internet? Increased penetration of wireless services Ubiquitous mobile data availability; a solid infrastructure should drive interest Enhanced data capable devices; users must have devices that work easily and seamlessly with the variety of content offerings that will be available Enhanced mobile content offerings ; improving the user experience Monetization is only just beginning Next-generation mobile technologies Mobile advertising - search, branded, pay-per-click pay-per-call Mobile payments enabling impulse purchasing Location-based services The Fall of the Mobile “Walled Garden”

What will drive success of the Mobile Internet?

Increased penetration of wireless services

Ubiquitous mobile data availability; a solid infrastructure should drive interest

Enhanced data capable devices; users must have devices that work easily and seamlessly with the variety of content offerings that will be available

Enhanced mobile content offerings ; improving the user experience

Monetization is only just beginning

Next-generation mobile technologies

Mobile advertising - search, branded, pay-per-click pay-per-call

Mobile payments enabling impulse purchasing

Location-based services

The Fall of the Mobile “Walled Garden”

The Mobile Internet – Key Success Drivers Increased penetration of wireless services BofA estimates the number of WW wireless subs will grow to 4.7B in 2010E from 3.2B in 2007 We believe penetration levels below 50%* represent significant growth opportunities for wireless services Source: Banc of America Securities LLC Wireless Equipment Research

Increased penetration of wireless services

BofA estimates the number of WW wireless subs will grow to 4.7B in 2010E from 3.2B in 2007

We believe penetration levels below 50%* represent significant growth opportunities for wireless services

The Mobile Internet – Key Success Drivers Improved mobile data availability . We see a substantial ramp in worldwide 3G penetration as 2007E-2009E BofA estimates* suggest below… * Source: Banc of America Securities LLC Wireless Equipment Research

Improved mobile data availability . We see a substantial ramp in worldwide 3G penetration as 2007E-2009E BofA estimates* suggest below…

The Mobile Internet – Key Success Drivers Enhanced data-capable devices . New devices from worldwide handset makers continue to integrate the latest telephony protocols into handsets; ultimately increasing data options for consumers…power consumption/management remains an issue, however… Source: Handset images from company websites * In-Stat research estimates In-Stat estimates 20+ cellular handsets now with embedded Wi-Fi capability… …Install base of Wi-Fi enabled handsets predicted at 132MM by 2010* 50% of Vodafone handsets feature 3G… …Telstra’s top 6 devices feature 3G …Nokia plans to ship 80MM music phones this year (2x iPod sales last year) Combination Protocol Handsets NOKIA N80 – Wi-Fi / EDGE HTC TyTN – Wi-Fi / Tri-Band UTMS / Quad-Band EDGE Wi-Fi Only Handsets NETGEAR SPH101 – Skype Wi-Fi Phone KEYSPAN – Cordless VoIP Wi-Fi Phone HSDPA Handsets LG CU500 – HSDPA / EDGE SAMSUNG SGH-Z560 – HSDPA / EDGE EV-DO Handsets Palm Treo 700w – EV-DO SAMSUNG A890 – EV-DO GPRS/EDGE Handsets Sidekick 3 – EDGE BlackBerry 8700c – EDGE

Enhanced data-capable devices . New devices from worldwide handset makers continue to integrate the latest telephony protocols into handsets; ultimately increasing data options for consumers…power consumption/management remains an issue, however…

The Mobile Internet – Key Success Drivers Improving the experience; enhanced content offerings . As mobile data availability advances, content offerings follow…below are highlights of the mobile content evolution… Source: Informa Telecoms & Media, Banc of America Securities LLC Internet Research SMS RIngtones (mono) SMS MMS RIngtones (poly) SMS MMS RIngtones (real) SMS MMS Video/ music clips Consumer email Video messaging TV shorts Music (MP3) Multiplayer games [ Mobile commerce ] Mobile TV Interactive multimedia Networked music Multiplatform games 2G 3G Mobile Content Evolution We are “here” in the US

Improving the experience; enhanced content offerings . As mobile data availability advances, content offerings follow…below are highlights of the mobile content evolution…

SMS

RIngtones (mono)

SMS

MMS

RIngtones (poly)

SMS

MMS

RIngtones (real)

SMS

MMS

Video/ music clips

Consumer email

Video messaging

TV shorts

Music (MP3)

Multiplayer games

[ Mobile commerce ]

Mobile TV

Interactive multimedia

Networked music

Multiplatform games

The Mobile Internet – Key Success Drivers Search : search is king of the desktop and likely on mobile too; we believe GOOG and YHOO are well positioned with a very strong GUI Social media : creating and sharing user-generated content (see video and images points below) Video : includes content from traditional providers and shared user generated content -- mobile TV, visual radio, mobile movies and even SlingMedia mobile; As next generation data delivery & devices improve to support higher bandwidth content, we think this area is a natural fit Images : picture downloads, wallpapers as well as opportunities for online publishing, sharing and processing of user-generated images… we believe that integrated phones and online wireless communities bode well for the health of this category Music : ringtones, music downloads, MP3 playback, other streaming audio; how does integration of MP3 players fit into on-deck content availability? Download times are not feasible on current 2.5G networks Gaming : downloads and multiplayer online; Tetris for only so long; slower growth ahead? Information/data : premium subscription data services for both business and personal use Other (Adult) : Includes a variety of gambling services (sports and casino games) and content Improving the experience; enhanced content offerings . Similar to the online, mobile content has segmented into similar topical areas…categories include:

Search : search is king of the desktop and likely on mobile too; we believe GOOG and YHOO are well positioned with a very strong GUI

Social media : creating and sharing user-generated content (see video and images points below)

Video : includes content from traditional providers and shared user generated content -- mobile TV, visual radio, mobile movies and even SlingMedia mobile; As next generation data delivery & devices improve to support higher bandwidth content, we think this area is a natural fit

Images : picture downloads, wallpapers as well as opportunities for online publishing, sharing and processing of user-generated images… we believe that integrated phones and online wireless communities bode well for the health of this category

Music : ringtones, music downloads, MP3 playback, other streaming audio; how does integration of MP3 players fit into on-deck content availability? Download times are not feasible on current 2.5G networks

Gaming : downloads and multiplayer online; Tetris for only so long; slower growth ahead?

Information/data : premium subscription data services for both business and personal use

Other (Adult) : Includes a variety of gambling services (sports and casino games) and content

Improving the experience; enhanced content offerings . Similar to the online, mobile content has segmented into similar topical areas…categories include:

The Mobile Internet – Key Success Drivers Improving the experience; enhanced content offerings. Worldwide mobile content…$22.8B today and we are still in the Early Adopters stage… 20%+ CAGR Source: Banc of America Securities LLC Internet Research Laggards Innovators Early Adopters Early Majority Late Majority Mobile content today, 2006E $22.8B market $46.9B market Mobile content 2010E?

Improving the experience; enhanced content offerings. Worldwide mobile content…$22.8B today and we are still in the Early Adopters stage…

The Mobile Internet – Key Success Drivers Mobile search is a significant win-win for all if done correctly enables consumers to locate and purchase what they are looking for provides information to carriers to make better decisions on content helps marketers better target advertising to consumers; potentially enables “push” technologies down the road For the first time, data exists regarding where and how mobile users are spending their time; carriers have had this info before but never aggregated in advertiser-friendly form We believe mobile search and mobile advertising together will likely show similar growth to online search This will likely be driven by personalized search, which can pick up on clues users leave behind such as their preferences, click patterns and download history Improving the experience; enhanced content offerings. Mobile Search

Mobile search is a significant win-win for all if done correctly

enables consumers to locate and purchase what they are looking for

provides information to carriers to make better decisions on content

helps marketers better target advertising to consumers; potentially enables “push” technologies down the road

For the first time, data exists regarding where and how mobile users are spending their time; carriers have had this info before but never aggregated in advertiser-friendly form

We believe mobile search and mobile advertising together will likely show similar growth to online search

This will likely be driven by personalized search, which can pick up on clues users leave behind such as their preferences, click patterns and download history

Improving the experience; enhanced content offerings. Mobile Search

The Mobile Internet – Key Success Drivers Improving the experience; enhanced content offerings . Mobile Video In many Asian countries, soccer (football) fans actively monitored World Cup games on their mobile phones…picked up here by a Japanese cartoonist… Source: New York Times, June 8, 2006; TimesSelect Opinion section; by Yoshihiro Tatsumi (Japan) Gooooooooal!

Improving the experience; enhanced content offerings . Mobile Video In many Asian countries, soccer (football) fans actively monitored World Cup games on their mobile phones…picked up here by a Japanese cartoonist…

The Mobile Internet – Key Success Drivers Improving the experience; enhanced content offerings . A fragmented landscape…a variety of on-deck and off-deck solution providers are involved in various places in this large, and growing ecosystem… Source: Various company reports and company websites Solution Breadth Complete Solution Point Product Weak Robust Technology Strength Leaders: true end-to-end solutions Pure Technology: strong point-products Non-focused: content / other Aspiring: trying to expand off core products (Preminet)

Improving the experience; enhanced content offerings . A fragmented landscape…a variety of on-deck and off-deck solution providers are involved in various places in this large, and growing ecosystem…

The Mobile Internet – Key Success Drivers Source: Banc of America Securities LLC Internet Research benchmarked to Informa Telecoms & Media estimates, 2006E-2010E E = Banc of America Securities LLC Internet Research Estimates Improving the experience; enhanced content offerings . The Mobile Internet / Mobile Content…a $47B global market in 2010E?

Improving the experience; enhanced content offerings . The Mobile Internet / Mobile Content…a $47B global market in 2010E?

The Mobile Internet – Key Success Drivers The mobile advertising opportunity could include banner ads, sponsored search, and sponsorships, leveraging Yahoo!s 80 mobile partnerships, and providing significant market share gains Yahoo! Go Mobile 2.0 is expected to support 400 handset models by the end of ‘07 RIM deal gives Yahoo! relationships with over 160 carriers worldwide Mobile could be a more meaningful revenue contributor in 2008…by then, the majority of mobile phones should be Internet enabled… Europe is off to a good start and the US is opening up after the recent Cingular relationship Asian adoption of mobile is strong with India standing out We note, Yahoo! has partnered with go2 Directory Systems to place Yahoo! sponsored listings on the go2 Directory local-search site carried by Verizon , Sprint and Cingular ; when users search for local restaurants or movie theaters they will receive Yahoo! sponsored advertisers in the list of results Monetization is only just beginning

The mobile advertising opportunity could include banner ads, sponsored search, and sponsorships, leveraging Yahoo!s 80 mobile partnerships, and providing significant market share gains

Yahoo! Go Mobile 2.0 is expected to support 400 handset models by the end of ‘07

RIM deal gives Yahoo! relationships with over 160 carriers worldwide

Mobile could be a more meaningful revenue contributor in 2008…by then, the majority of mobile phones should be Internet enabled…

Europe is off to a good start and the US is opening up after the recent Cingular relationship

Asian adoption of mobile is strong with India standing out

We note, Yahoo! has partnered with go2 Directory Systems to place Yahoo! sponsored listings on the go2 Directory local-search site carried by Verizon , Sprint and Cingular ; when users search for local restaurants or movie theaters they will receive Yahoo! sponsored advertisers in the list of results

Monetization is only just beginning

The Mobile Internet – Key Success Drivers Yahoo! has launched a mobile display advertising platform in 19 countries with major advertisers such as Intel, Pepsi, P&G, Hilton’s Embassy Suites, Infiniti, Nissan, and Singapore Airlines already signed on. Google has launched coupons linked to Google Maps, suggesting a more substantial role in location-based mobile ads Specifically, GOOG has partnered with Valpak , a direct-mail advertiser, enabling businesses to upload coupon links and images, as well as printable coupons, to be distributed free of charge Ultimately, the goal is to help drive local businesses online without having to create websites Proctor and Gamble (P&G), the largest US advertiser, launched Herbal Essences shampoo wireless ads on Amp’d Mobile, providing P&G access to 50,000 Amp'd subs; Amp'd will offer discounts to subscribers that opt-in P&G is expected to increase its mobile ad spending in 2H:06 through additional promotions Sprint is running banner ad trials on its wireless decks this year and is testing lead-in video ads Verizon is testing banner ads, among other advertising models on its deck Monetization is only just beginning …most wireless sites are ad-free

Yahoo! has launched a mobile display advertising platform in 19 countries with major advertisers such as Intel, Pepsi, P&G, Hilton’s Embassy Suites, Infiniti, Nissan, and Singapore Airlines already signed on.

Google has launched coupons linked to Google Maps, suggesting a more substantial role in location-based mobile ads

Specifically, GOOG has partnered with Valpak , a direct-mail advertiser, enabling businesses to upload coupon links and images, as well as printable coupons, to be distributed free of charge

Ultimately, the goal is to help drive local businesses online without having to create websites

Proctor and Gamble (P&G), the largest US advertiser, launched Herbal Essences shampoo wireless ads on Amp’d Mobile, providing P&G access to 50,000 Amp'd subs; Amp'd will offer discounts to subscribers that opt-in

P&G is expected to increase its mobile ad spending in 2H:06 through additional promotions

Sprint is running banner ad trials on its wireless decks this year and is testing lead-in video ads

Verizon is testing banner ads, among other advertising models on its deck

Monetization is only just beginning …most wireless sites are ad-free

The Mobile Internet – Key Success Drivers Next-Generation Mobile Technologies Mobile Imaging – a content sharing technology that links the camera phone ecosystem to online technology and consumer / business use The phone as a payment mechanism Mobile devices are well positioned to handle payment for content and services through their existing billing infrastructures This is commonplace in countries such as Korea or China where credit cards are not widely used…phones are used at the point-of-sale, similar to cash, and even in convenience stores Interactive Voice Response (IVR) – applications enabling voice activated search on mobile devices Data storage and backup VRSN is moving heavily into the storage backup market helping carriers store content such as pictures, video and audio on their intelligent communications platform Infrastructure players continue to build out infrastructure for content delivery and transaction management Motricity and QCOM Brew divisions are viewed are leading infrastructure vendors Content players such as Glu Mobile, Hands-On Mobile and Digital Chocolate Digital Rights Management (DRM) is as important in the mobile world as it is in the Internet/PC World; MSFT will likely be involved in this business given their experience

Next-Generation Mobile Technologies

Mobile Imaging – a content sharing technology that links the camera phone ecosystem to online technology and consumer / business use

The phone as a payment mechanism

Mobile devices are well positioned to handle payment for content and services through their existing billing infrastructures

This is commonplace in countries such as Korea or China where credit cards are not widely used…phones are used at the point-of-sale, similar to cash, and even in convenience stores

Interactive Voice Response (IVR) – applications enabling voice activated search on mobile devices

Data storage and backup

VRSN is moving heavily into the storage backup market helping carriers store content such as pictures, video and audio on their intelligent communications platform

Infrastructure players continue to build out infrastructure for content delivery and transaction management

Motricity and QCOM Brew divisions are viewed are leading infrastructure vendors

Content players such as Glu Mobile, Hands-On Mobile and Digital Chocolate

Digital Rights Management (DRM) is as important in the mobile world as it is in the Internet/PC World; MSFT will likely be involved in this business given their experience

The Mobile Internet – Key Success Drivers The Fall of the Mobile “Walled Garden”? Historically, major carriers such as Verizon and Cingular have been managing on-deck portals which serve as a means to access carriers’ often exclusive partner content On these mobile decks, or portals, content providers were often bidding for top positions since prime real estate on the deck is limited, and search capabilities on these portals has been somewhat challenging For years, the carriers have decided against delivering users off-deck (to the open Internet), for fear of losing their mobile content partnerships to branded mobile search engines However, this sentiment is slowly changing, as mobile search providers such as Yahoo! are placing on-deck content and carrier partner content in top search results Mix of on-portal content promoting own content partners and the wider web in search results, which will be delivered to mobile devices; carrier content, paid placement, sponsored links, then the wider web Also, intermediaries, that help deliver and manage content, are positioned to be the entry point of the off-deck world for many carriers; these players should serve as a safe-havens for off deck content from the carrier’s perspective While some carriers continue to be successful at monetizing their on-deck traffic, we believe that more operators will likely continue to realize the need to pursue off-deck content arrangements, with the likes of YHOO, to remain profitable We also highlight that the “Walled Garden” approach was not very effective for AOL over the long term…

The Fall of the Mobile “Walled Garden”?

Historically, major carriers such as Verizon and Cingular have been managing on-deck portals which serve as a means to access carriers’ often exclusive partner content

On these mobile decks, or portals, content providers were often bidding for top positions since prime real estate on the deck is limited, and search capabilities on these portals has been somewhat challenging

For years, the carriers have decided against delivering users off-deck (to the open Internet), for fear of losing their mobile content partnerships to branded mobile search engines

However, this sentiment is slowly changing, as mobile search providers such as Yahoo! are placing on-deck content and carrier partner content in top search results

Mix of on-portal content promoting own content partners and the wider web in search results, which will be delivered to mobile devices; carrier content, paid placement, sponsored links, then the wider web

Also, intermediaries, that help deliver and manage content, are positioned to be the entry point of the off-deck world for many carriers; these players should serve as a safe-havens for off deck content from the carrier’s perspective

While some carriers continue to be successful at monetizing their on-deck traffic, we believe that more operators will likely continue to realize the need to pursue off-deck content arrangements, with the likes of YHOO, to remain profitable

We also highlight that the “Walled Garden” approach was not very effective for AOL over the long term…

The Mobile Internet – The Bear Case Carrier control of wireless data networks and content; the major US carriers remain very protective of their customers Off-deck versus on-deck content argument – while it may appear that content is moving off-platform and away from carriers, direct-to-consumer (D2C) remains difficult, and ultimately some type of interaction with carriers is required Current technologies do not lend themselves to next-generation content experiences screen size, brightness and capability available bandwidth can not currently support high levels of data transfer; Scaling 3G video across a large consumer base will likely overwhelm the networks, especially as higher definition content become more standardized Interoperability between carriers remains an issue for using and sharing content Low penetration of advanced function mobile devices Off-portal search is still relatively nascent; and a sense that mobile search may become too focused on advertising and other disruptive content Mobile TV is still in its early stage; early services have not been impressive 75% not interested in mobile video, 69% not interested in music, 43% would pay for phones that prevented marketing messages…results from a survey mentioned at the Drilling Down on Local Search conference by Kelsey Group in April 2006 However…the Bears Will Say…

Carrier control of wireless data networks and content; the major US carriers remain very protective of their customers

Off-deck versus on-deck content argument – while it may appear that content is moving off-platform and away from carriers, direct-to-consumer (D2C) remains difficult, and ultimately some type of interaction with carriers is required

Current technologies do not lend themselves to next-generation content experiences

screen size, brightness and capability

available bandwidth can not currently support high levels of data transfer; Scaling 3G video across a large consumer base will likely overwhelm the networks, especially as higher definition content become more standardized

Interoperability between carriers remains an issue for using and sharing content

Low penetration of advanced function mobile devices

Off-portal search is still relatively nascent; and a sense that mobile search may become too focused on advertising and other disruptive content

Mobile TV is still in its early stage; early services have not been impressive

75% not interested in mobile video, 69% not interested in music, 43% would pay for phones that prevented marketing messages…results from a survey mentioned at the Drilling Down on Local Search conference by Kelsey Group in April 2006

Glu Mobile (GLUU: Buy, $2.25 Target) Glu Mobile is a global developer and publisher of mobile entertainment. Glu's portfolio of games, ringtones, wallpapers and information applications include both original titles and entertainment based on third-party licensed brands from companies such as Atari, Microsoft and Hasbro as well as other third party intellectual property. Source: Company reports, FactSet, Banc of America Securities LLC Internet Research Portfolio Manager’s Summary Our 12-month thesis on the stock. Glu Mobile is a play on the content sub segment of the Mobile Internet ecosystem. GLUU is a leading global publisher of mobile games and is one of the top three players in most markets. We anticipate that the Mobile Internet and Mobile Content should serve as one of the more significant worldwide growth opportunities in the next 1-4 years. We believe GLUU's market leadership makes it well-positioned to benefit from the growth in worldwide mobile games revenue from $2.8B in 2006 to $6.8B in 2010E (25% 4-year CAGR). Upcoming catalysts. Quarterly earnings; mobile game download numbers from 3rd party sources; signing of new contracts and renewal of existing revenue share contracts with carriers; gain/loss of new content/licenses. 12-month valuation. Our TP of $6 is based on our 10-year DCF, which assumes a cost of capital of 15% and growth in perpetuity of 5.5% (implies a 5.9x terminal EBITDA multiple). Risks to our call. Significant competition from larger well-funded players including Electronic Arts and Gameloft; concentration of revenues among the top 4 carriers and license/content owners; hits-driven business makes it difficult to forecast growth.

MODELS

MODELS

AMZN Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

AMZN Revenue Build-Up Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

AMZN Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

AMZN Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

AMZN Metrics Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

AMZN Metrics (cont.) Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

AMZN DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

DSCM Income Statement

DSCM Revenue Build-Up

DSCM Balance Sheet

DSCM Cash Flow Statement

DSCM DCF Valuation

EBAY Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EBAY Revenue Build-Up Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EBAY Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EBAY Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EBAY Metrics Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EBAY Metrics (cont.) Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EBAY DCF and Sum-of-the-Parts Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EXPE Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EXPE Revenue Build-Up Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EXPE Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EXPE Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

EXPE Metrics

EXPE DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GLUU Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GLUU Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GLUU Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GLUU DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GOOG Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GOOG Revenue Buildup Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GOOG Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GOOG Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GOOG Metrics Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GOOG DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GSIC Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GSIC Revenue Build-Up Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GSIC Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GSIC Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

GSIC DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

IACI Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

IACI Revenue Buildup Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

IACI DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

MCHX Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

MCHX Revenue Build-Up Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

MCHX Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

MCHX Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

MCHX DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

NFLX Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

NFLX Revenue Build-Up Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

NFLX Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

NFLX Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

NFLX Metrics Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

NFLX DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

OMTR Income Statement

OMTR Revenue Build up

OMTR Balance Sheet

OMTR Cash Flow Statement

OMTR DCF Valuation

OWW Income Statement

OWW Revenue Build-Up

OWW Balance Sheet

OWW Cash Flow Statement

OWW DCF Valuation

PCLN Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

PCLN Revenue Build-Up Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

PCLN Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

PCLN Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

PCLN Metrics

PCLN DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

RATE Income Statement

RATE Revenue Build-Up

RATE Balance Sheet

RATE Cash Flow Statement

RATE DCF Valuation

VCLK Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

VCLK Revenue Build-Up Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

VCLK Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

VCLK Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

VCLK DCF and Sum-of-the-Parts Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

WBMD Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

WBMD Revenue Buildup Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

WBMD Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

WBMD Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

WBMD DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

YHOO Income Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

YHOO Revenue Buildup Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

YHOO Balance Sheet Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

YHOO Cash Flow Statement Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

YHOO Metrics Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

YHOO Sum-of-the-Parts Valuation

YHOO DCF Valuation Source: Company reports, FactSet, Banc of America Securities LLC Internet Research

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