09-03-31 Web 2.0 Weekly

SOFTWARE & SERVICES 31 MARCH 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 FINANCING REBO UND IN Q1 F IR ST Q UA RT E R CL O S E S B ET T E R T HA N P R E VI OU S QU A RT ER The first quarter of 2009 finished with 77 financings totalling $521 million, up 54% Q/Q (Q4/08 at $338.5 million) and down 44% Y/Y (Q1/08 at $748.2 million). March was the weakest month in the first quarter at $118.7 million, with January and February closing at $216.8 million and $185.5 million, respectively. Does this rise in quarterly rise over Q4/F08 portend what 2009 will look like? W e will be keeping track and discussing trends in our upcoming reports. Sectors that attracted the most amount of capital in the first quarter are Video ($121 million) and social networking ($60 million), with gaming not far behind at $43 million. W e wonder if the interest in the video sector is a leading indicator of where the next big innovation is located or companies’ looking to capitalize on the massive traffic online video is driving? Among individual companies, Twitter leads the pack in the quarter, raising $35 million, with Synthasite taking the runners-up at $20 million. Financing by Month 800.0 35 720.8 700.0 30 649.9 600.0 25 500.0 461.7 20 (US$mm) (#) 400.0 360.5 15 318.7 304.3 300.0 244.0 216.8 10 192.6 185.5 200.0 142.0 132.3 122.8 114.6 118.7 111.0 101.1 99.0 5 82.6 82.5 100.0 69.5 68.8 69.0 69.0 56.3 40.5 48.7 42.0 38.0 40.9 38.8 38.8 38.6 38.6 24.4 22.0 21.4 21.2 18.8 16.5 15.4 12.5 12.2 8.0 0.0 0 5 6 6 7 7 8 8 05 06 6 06 07 7 07 08 8 08 09 9 5 6 7 8 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 l-0 l-0 l-0 l-0 p- n- p- n- p- n- p- n- ov ay ov ay ov ay ov ar ar ar ar Ju Ju Ju Ju Se Ja Se Ja Se Ja Se Ja M M M M N M N M N M N This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. w w w . r e s e a rc h c a p i t a l . c o m T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550

THE WEB 2.0 UNIVERSE Ninety public Web 2.0 companies identified: Our W eb 2.0 universe contains 90 companies, with a combined market cap of $34.8 billion. These include a wide variety of companies, including MMOG (Massive Multi-Player Online Gaming) companies, social networking software companies, media sharing companies, and social lending companies. See below for a summary of the full universe (Figure 1). The average market cap for the group is ~$386 million (but a median of only $31 million), with average trailing revenue of $138.6 million (median $48 million). The companies are also generally profitable, with a median EBITDA margin of 16.4%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.3x) and 8.9x trailing EBITDA (median 6.6x). Twelve of the companies have more than 500 employees. C omparable C o mpany A nalys is > W eb 2.0 Trading Current U S D Market U S D LT M To tal US D L TM T otal E B ITDA TE V/LT M T E V/LT M C om pany Nam e L TM as of T ic ker E xc hang e Curr enc y H Q P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenu e E B IT DA E mployees Acce le rize New Me dia, Inc. 9 /30 /200 8 AC LZ OT C B B US D U nited S ta tes 0 .35 9 .4 3.2 (4 .7) NM 4.3 x - 20 Actoz S oft C o., L td. 9 /30 /200 8 A0 527 90 K OS E KR W S outh K orea 11, 150 7 1.1 52. 9 9 .7 18 .3% 0.9 x 4.7x NA AQ Inte ractive , Inc. 1 2/31 /200 8 38 38 TSE J PY J apan 40 ,000 .00 2 2.4 62. 1 5 .0 8 .0% - - NA As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K US D U nited S ta tes 0 0 .1 0.1 (2 .3) NM 8.0 x - 3 B igstring Corp. 9 /30 /200 8 BS GC OT C B B US D U nited S ta tes 0 .02 0 .8 0.1 (2 .1) NM 29.8 x - 8 B e tawave Corpora tion 9 /30 /200 8 B W AV OT C B B US D U nited S ta tes 0 4 .4 6.3 (1 1.0) NM 2.4 x - 41 B e yond Commerce, Inc. 9 /30 /200 8 B Y OC OT C B B US D U nited S ta tes 0 .51 2 0.9 1.1 (7 .7) NM 21.8 x - 25 B right T hings plc 9 /30 /200 8 AIM:B G T AIM GBP U nited K ingdom 0 2 .5 0.2 (1 .6) NM 10.5 x - 9 B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K US D U nited S ta tes 0 .51 4 3.3 0.0 (4 .6) NM - - 46 C DC C orp. 9 /30 /200 8 C HIN.A N as da qG S US D H ong K ong 1 11 6.5 428 .1 1 8.8 4 .4% 0.4 x 9.2x 3 ,12 5 C hina G ate wa y C orpora tion 9 /30 /200 8 C GW Y OT C B B US D U nited S ta tes 0 .00 0 .0 6.7 (6 .6) -9 8.9% 0.0 x - 37 C hine s e G amer International 9 /30 /200 8 G T S M:308 3 GTSM TWD T aiwan 171 42 5.9 37. 8 1 7.8 47 .1% 9.8 x 2 0.8 x NA C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B US D U nited S ta tes 0 .14 6 .6 1.3 NM NM 6.1 x - NA D ADA S pA 9 /30 /200 8 C M:D A CM E UR Ita ly 5 10 1.2 223 .0 3 5.6 16 .0% 0.6 x 4.1x 574 D XN Holdings B hd 1 1/30 /200 8 D XN KL SE MY R Ma la ys ia 0 .30 1 8.8 76. 0 1 0.1 13 .3% 0.5 x 3.8x NA D ibz Inte rnational, Inc. NA D IB Z OT C P K US D U nited S ta tes 0 0 .0 NA NM NM - - NA D igitalP ost Inte ra ctive , Inc. 9 /30 /200 8 D G LP OT C B B US D U nited S ta tes 0 .01 0 .7 0.4 (3 .3) NM 3.9 x - 11 D igitalT own, Inc. 1 1/30 /200 8 DGT W OT C B B US D U nited S ta tes 3 6 7.9 NM (2 .5) NM - - 3 D olphin Digital Me dia, Inc. NA D P DM OT C B B US D U nited S ta tes 0 .59 2 8.7 NA NM NM 1.0 x - 6 E olith C o. L td. 1 2/31 /200 7 A0 410 60 K OS E KR W S outh K orea 515 1 7.4 18. 1 (0 .0) -0 .3% - - NA E xte ns ions , Inc. 9 /30 /200 8 E XT I OT C P K US D U nited S ta tes 0 .15 1 4.2 NM NM NM - - 2 F inancia l Media G roup, Inc. 1 1/30 /200 8 F NG P OT C B B US D U nited S ta tes 0 0 .5 6.8 1 .2 18 .3% 0.7 x - 22 F luid Mus ic Ca nada, Inc. 9 /30 /200 8 T S X:F MN TSX C AD U nited S ta tes 0 .40 1 6.7 4.2 (8 .6) NM 3.8 x - 29 F rogs te r Interactive P icture s AG 6 /30 /200 8 F RG XT R A E UR G ermany 7 2 0.4 5.3 (3 .2) -6 0.6% 1.1 x 6.5x NA G a ma nia D igital E ntertainment C o., L td. 9 /30 /200 8 61 80 GTSM TWD T aiwan 32 .60 14 5.5 109 .3 1 8.5 16 .9% 0.5 x 1.8x NA G a me On C o L td. 1 2/31 /200 8 38 12 TSE J PY J apan 93, 600 9 3.2 76. 8 1 9.9 25 .9% 3.6 x - NA G e oS e ntric O yj 9 /30 /200 8 G E O1 V H LS E E UR F inland 0 .03 2 4.6 5.4 (1 2.4) NM - - 92 G iant Intera ctive G roup, Inc. 1 2/31 /200 8 GA NYS E US D C hina 7 1,5 43.6 233 .2 14 4.4 61 .9% 1.3 x 5.3x NA G iga Media Ltd. 9 /30 /200 8 G IG M N as da qG S US D T aiwan 5 .91 31 9.3 200 .5 4 8.0 23 .9% - - 975 G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M US D S outh K orea 1 1 9.2 35. 4 6 .8 19 .2% 40.4 x - 636 G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE J PY J apan 5 ,600 .00 1,2 86.4 30. 3 1 0.9 36 .0% 1.2 x 6.7x NA G ungH o O nline E ntertainment, Inc. 1 2/31 /200 8 37 65 OS E J PY J apan 1 35, 300 15 9.6 115 .8 2 0.7 17 .8% 0.7 x - NA H anbitS of t, Inc. 1 2/31 /200 8 A0 470 80 K OS E KR W S outh K orea 3 ,210 .00 5 0.9 50. 3 (1 4.2) -2 8.2% 0.3 x 6.1x NA IAC /InterActiveC orp. 1 2/31 /200 8 IAC I N as da qG S US D U nited S ta tes 15 2,1 48.0 1 ,44 5.1 6 4.6 4 .5% - - 3 ,20 0 IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B US D C ana da 0 .05 3 .2 0.0 (0 .8) NM - - NA IdeaE dge, Inc. 1 2/31 /200 8 OT C B B :IDAE OT C B B US D U nited S ta tes 0 1 4.8 0.0 (4 .6) NM 1.8 x - NA is ee media Inc. 1 2/31 /200 8 IE E T S XV C AD C ana da 0 .09 3 .7 1.2 (4 .7) NM 1.0 x 2.8x NA J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 1 1 6.9 12. 2 4 .5 37 .2% 5.3 x - 72 J umpT V Inc. 6 /30 /200 8 T S X:J T V TSX C AD C ana da 0 .54 4 8.9 11. 5 (1 .8) -1 5.3% 0.9 x 1 1.5 x NA K a boos e Inc. 9 /30 /200 8 T S X:K AB TSX C AD C ana da 0 4 4.6 59. 1 4 .5 7 .6% 3.5 x 1 0.3 x NA K ings oft Co. Ltd. 9 /30 /200 8 38 88 S E HK HKD C hina 3 .25 45 0.3 106 .8 3 6.1 33 .8% 2.4 x - 1 ,66 0 Lingo Media Corporation 9 /30 /200 8 T S XV : LM T S XV C AD C ana da 1 7 .2 3.2 (1 .4) -4 2.5% 0.3 x - NA Live World Inc. 9 /30 /200 8 LV WD OT C P K US D U nited S ta tes 0 .13 4 .0 11. 7 (1 .2) -1 0.1% - - 73 LookS mart, Ltd. 1 2/31 /200 8 LOOK N as da qG M US D U nited S ta tes 1 1 7.2 65. 0 (2 .0) -3 .1% - - NA Magnitude Information S ys tems Inc. 9 /30 /200 8 MA G Y OT C B B US D U nited S ta tes 0 .02 8 .3 0.1 (3 .2) NM 4.1 x 1 0.7 x 13 Mixi, Inc. 1 2/31 /200 8 21 21 TSE J PY J apan 3 78, 000 59 7.5 120 .8 4 5.9 38 .0% 1.0 x 6.2x NA Mode rn Times G roup Mtg AB 1 2/31 /200 8 MT G B OM S EK S weden 135 .25 1,0 68.9 1 ,57 9.2 25 2.5 16 .0% - - NA Moggle , Inc 1 2/31 /200 8 MMOG OT C B B US D U nited S ta tes 2 8 3.5 NM (1 .1) NM 4.5 x - 3 MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 .09 5 .4 1.0 (2 .0) NM 2.4 x 8.8x NA N E OW IZ G ames C orpora tion 1 2/31 /200 7 A0 956 60 K OS E KR W S outh K orea 45, 400 31 5.9 130 .4 3 5.1 26 .9% 1.5 x 3.3x NA N etD ragon W ebS oft, Inc. 1 2/31 /200 8 77 7 S E HK HKD C hina 4 .09 27 8.9 87. 2 3 9.9 45 .7% - - NA N ete as e.com I nc. 1 2/31 /200 8 NT ES N as da qG S US D C hina 25 3,1 12.0 451 .1 29 3.3 65 .0% - - NA N eXplore Corpora tion 9 /30 /200 7 N XP C OT C P K US D U nited S ta tes 0 .60 3 3.5 NM (4 .9) NM - - 19 N gi G roup Inc. 1 2/31 /200 8 24 97 TSE J PY J apan 24, 300 3 0.9 101 .3 3 1.2 30 .8% 0.2 x 0.9x NA N orthgate Te chnologies L imited 1 2/31 /200 8 59 005 7 BS E INR India 31 .30 2 1.3 131 .8 2 3.2 17 .6% 2.5 x 9.8x 286 Open T e xt Corp. 1 2/31 /200 8 OT E X N as da qG S US D C ana da 34 1,7 71.3 769 .3 19 5.0 25 .3% - - 3 ,40 0 Openwave S ys tems Inc. 1 2/31 /200 8 OP W V N as da qG S US D U nited S ta tes 0 .90 7 5.0 199 .6 (1 0.2) -5 .1% - - 627 P e rf ect W orld C o., Ltd. 1 2/31 /200 8 PW R D N as da qG S US D C hina 14 71 6.4 210 .2 11 3.7 54 .1% 2.6 x - NA P hotoChannel N etwork s Inc. 1 2/31 /200 8 T S XV : P N T S XV C AD C ana da 1 .60 4 2.7 15. 9 (0 .8) -4 .9% - - NA Quepa s a C orp. 9 /30 /200 8 QP S A N as da qC M US D U nited S ta tes 1 1 2.2 0.1 (1 1.8) NM 0.0 x 0.1x 63 OA O R B C Information S ys tems 1 2/31 /200 7 R BC I R TS US D R us s ia 0 .38 5 2.7 139 .3 1 8.2 13 .1% - - NA S handa Interactive E ntertainme nt L td. 1 2/31 /200 8 S N DA N as da qG S US D C hina 37 2,5 54.0 522 .0 23 9.9 46 .0% 0.7 x 5.2x NA S hutte rf ly, Inc. 1 2/31 /200 8 S F LY N as da qG S US D U nited S ta tes 9 .34 23 4.9 213 .5 2 8.4 13 .3% 1.4 x 1 5.4 x 514 S K C ommunications Co., Ltd. 1 2/31 /200 7 A0 662 70 K OS E KR W S outh K orea 7, 300 21 7.2 150 .0 1 4.1 9 .4% 3.3 x 3 2.5 x NA S N AP Inte ra ctive , Inc. 9 /30 /200 8 S T VI OT C B B US D U nited S ta tes 0 .80 8 .6 2.3 0 .2 10 .1% 1.1 x - 5 S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K US D U nited S ta tes 0 0 .0 2.0 (0 .7) -3 4.8% 0.1 x - 33 S ocia l Media V e nures , Inc. 1 2/31 /200 8 S MV I OT C P K US D U nited S ta tes 1 .20 0 .0 0.1 (0 .1) -6 0.5% 2.8 x 6.8x NA S ohu. com Inc. 1 2/31 /200 8 S OH U N as da qG S US D C hina 40 1,5 28.4 429 .1 18 0.5 42 .1% - - 3 ,19 7 S ite s earch C orporation 1 /31 /200 9 S T PC OT C B B US D U nited S ta tes 3 .50 2 8.2 NM (1 .1) NM 0.8 x 3.9x 15 S park N etworks , Inc. 1 2/31 /200 8 LOV AME X US D U nited S ta tes 2 4 7.3 57. 3 1 2.3 21 .5% - - NA S pectrumDN A, Inc. 9 /30 /200 8 S P XA OT C B B US D U nited S ta tes 0 .19 9 .2 0.1 (2 .7) NM 13.7 x 2 7.8 x 7 T encent Holdings L td. 1 2/31 /200 8 70 0 S E HK HKD C hina 58 13,3 41. 9 1 ,04 6.4 51 7.5 49 .5% 0.2 x - 6 ,19 4 T he P arent C ompany 8/2/2008 K ID S .Q OT C P K US D U nited S ta tes 0 .05 1 .3 112 .0 (1 3.5) -1 2.0% - - 347 T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S US D C hina 12 33 1.7 249 .8 8 4.1 33 .7% - - NA T he S treet.com, Inc. 1 2/31 /200 8 TSCM N as da qG M US D U nited S ta tes 1 .99 6 0.7 71. 9 7 .0 9 .7% 4.6 x - 310 T otal S port Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 0 .2 2.0 (1 .0) -5 0.6% 0.2 x - 16 T ree.C om, Inc. 1 2/31 /200 8 TR EE N as da qG M US D U nited S ta tes 4 .47 4 4.6 228 .6 (2 3.9) -1 0.4% 0.1 x 2 9.5 x 700 U nis erve C ommunications Corp. 1 1/30 /200 8 T S XV : US S T S XV C AD C ana da 0 0 .8 23. 8 0 .1 0 .4% 1.0 x 4.3x NA U nited Online Inc. 1 2/31 /200 8 U NT D N as da qG S US D U nited S ta tes 4 .35 35 7.3 669 .4 15 3.9 23 .0% 18.1 x - 1 ,46 9 U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B US D C ana da 0 1 1.1 0.6 (0 .5) -7 8.2% 44.0 x - NA V O IS , Inc. 1 2/31 /200 8 V OIS OT C B B US D U nited S ta tes 0 .12 1 .0 0.0 (1 .3) NM - - 4 W ebze n Inc. 1 2/31 /200 8 W ZE N N as da qG M US D S outh K orea 2 2 0.7 20. 6 (2 .1) -1 0.1% 3.1 x - 330 W iz za rd S of twa re Corpora tion 9 /30 /200 8 W ZE AME X US D U nited S ta tes 0 .43 1 9.4 6.2 (6 .5) NM - - 110 W oozyF ly, Inc. 9 /30 /200 8 W ZY F OT C B B US D U nited S ta tes 0 2 .6 0.0 NM NM - - 14 W orlds .com Inc. 9 /30 /200 8 W DDD OT C B B US D U nited S ta tes 0 .18 9 .4 0.1 NM NM - - 1 W ynds torm C orporation NA W Y ND OT C B B US D U nited S ta tes 0 2 .2 NA NM NM 3.1 x 9.6x NA XIN G AG 1 2/31 /200 8 O1B C XT R A E UR G ermany 28 .80 19 7.1 45. 9 1 4.7 32 .0% 1.9 x 8.5x NA Y e dangOnline Corp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 8, 400 9 5.1 49. 6 1 1.1 22 .4% 0.5 x - NA Y nk K orea Inc. 1 2/31 /200 7 A0 237 70 K OS E KR W S outh K orea 3 ,780 .00 6 .7 14. 1 (1 .1) -7 .6% 0.8 x - NA ZipLocal Inc. 1 2/31 /200 8 T S XV : ZIP T S XV C AD C ana da 0 1 .0 2.6 (2 .8) NM - - NA H igh 13,3 41. 9 1 ,579 .2 51 7.5 65 .0% 44.0 x 3 2.5 x 6 ,194 Low 0 .0 0.0 -23.9 -9 8.9% - - 1 A vera ge 386.3 138.6 31.3 8.9% 4.7x 8.9x 603 Median 3 0.9 47. 8 0 .2 16 .4% 1.3 x 6.6x 83 Figure 1. Web 2.0 Universe Summary Source. Capital IQ C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G ) March activity slows below busy February: In the month of March there were 19 financings announced (total $118.7 million, average $6.1 million) compared to 25 financings announced in February, totalling $185.5 million, or $7.4 million on

average (Figure 2). The average value for February was above the $6.8 million average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January. There was only one $15 million deal in March – Vidyo. Financing Activity Last Three Months 250.0 25.0 200.0 20.0 150.0 15.0 (US$m) (US$m) 100.0 10.0 50.0 5.0 0.0 0.0 Jan-09 Feb-09 Mar-09 Total Average Figure 2. Financings, Last Three Months Source. Company reports Vidyo largest deal in March: The largest deal in March was the $15 million Series D round for Vidyo (Figure 3). For additional details, see Figures 30 and 31 (at end of note).

(US$m) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Twitter Synthasite Tremor Media Aster Data Systems Source. Company reports Vidyo Offerpal Media Imagini Yodle Buzznet Emergent Game AdMob LendingClub SendMe Inc. Outbrain Miva Figure 3. Capital Market Activity, Last Three Months VirtuOz Auditude Visible Measures companies raising $60.5 million. SuperSecret RatePoint Nurien DECA Go Internet Media IMVU NewsGator One True Media Tvtrip GoViral Play Hard Sports SundaySky JibJab Xobni InsideView Kewego Tongxue Motionbox SocialMedia Fliqz Oodle Greystripe Wamba OMGPOP Geni Gbox Sportsblogs AboutUs TextDigger OneSpot Apture FetchDog Simulmedia Virtual Fairground Mixpo Tynt E-Global Sports Network AnySource Media Pixazza Financing Summary - Last Three Months 7 Billion People FamilyLink.com Tripwolf mEgo WhistleBox Mendeley Sports Composite DE Outright Hunch Tvinci Filtrbox MMO Life AdultSpace Cake Financial Myngle Hubdub Snooth CoveritLive 33Across fav.or.it Three Melons TweetDeck BackType Identi.ca Meez Pulse Entertainment Jan-09 Mar-09 Feb-09 Page 4 16 companies raising over $120 million (Figure 4). Social networking companies have the next highest totals, with 11 Video continues to be the most active sector: Activity over the last three months was busiest in the video sector, with

Capital Market Activity by Sector - Last Three Months 140.0 120.0 100.0 80.0 (US$m) 121.1 60.0 40.0 60.5 42.9 42.3 20.0 35.8 26.5 25.0 22.5 20.9 19.5 15.6 15.0 12.4 12.0 12.0 11.5 11.4 10.0 6.2 5.5 4.3 4.1 3.2 3.1 2.0 1.3 0.0 Comment/Reputation Gaming Micromedia Visual Commerce Wiki Travel RSS Microblog Media Mobile Publishing Online Learning Financial Services Infrastructure Lending Blog Mobile Ad Search Social Networks Virtual Goods Video Virtual World Aggregation Crowdsourced Ad Network Analytics Content # companies 16 11 8 5 3 4 2 4 2 3 2 1 3 1 1 2 1 1 3 1 1 1 2 1 1 1 Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports Average round size decreases: On a trailing 12-month basis, total financing dollars fell as of March 2009, with average round sizes decreasing slightly. (Figure 5). LTM Financing 4,000.0 18.0 16.0 3,500.0 14.0 3,000.0 12.0 2,500.0 10.0 (US$m) (US$m) 2,000.0 8.0 1,500.0 6.0 1,000.0 4.0 500.0 2.0 0.0 0.0 May-06 May-07 May-08 Nov-05 Mar-06 Nov-06 Mar-07 Nov-07 Mar-08 Nov-08 Mar-09 Jul-05 Sep-05 Jan-06 Jul-06 Sep-06 Jan-07 Jul-07 Sep-07 Jan-08 Jul-08 Sep-08 Jan-09 Total Average Figure 5. Financings, Last 12 Months Source. Company reports

Cumulative total nears $5.8 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled nearly $5.8 billion, with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6).Financing for the first quarter of 2009 passed that raised in the fourth quarter of 2008 – reversing the downtrend since the second quarter last year. However, for the period ended Q1-C2009, total capital raised was below Q1-C2008 level (at $748.2 million). Web 2.0 Financing (cumulative) 1,400.0 7,000.0 1,314.8 1,200.0 6,000.0 963.4 1,000.0 5,000.0 800.0 4,000.0 748.2 (US$m) (US$m) 600.0 3,000.0 528.9 521.0 400.0 2,000.0 338.5 330.1 151.7 159.3 200.0 1,000.0 126.4 135.6 129.5 87.2 84.0 37.5 33.5 18.2 41.9 57.8 38.8 20.1 0.0 0.0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 2004 2005 2006 2007 2008 2009 Figure 6. Financing, Cumulative Source. Company reports U.S. remains dominant: U.S. companies continue to dominate capital market activity – with almost 67.5% of financings/M&A involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S. leads with 73.1% of deals, while Canada is third in number of financings at 4.7% (Figure 8). Financing/M&A by Country - LTM (#) Financing/M&A by Country - LTM ($) China Canada UK Israel 16.0% 4.7% 5.6% 3.4% Russia France 4.1% 2.6% UK Israel 2.4% 1.9% ROW France 10.7% 1.6% Denmark 1.6% ROW 5.0% USA 73.1% USA 67.5%

Figures 7 & 8. Financing/M&A, by Country (LTM, $, #) Source. Company reports Larger volume of early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 29.2% of the total, with later-stage (Series D, E and PIPE) deals accounting for just 9.2%. Financing by Type - LTM Series C 15.2% Series B 29.2% Series D 4.4% Angel/Seed 11.2% Debt financing Series A 2.8% 35.2% PIPE 2.0% Figure 9 Financing, by Type (LTM, #) Source. Company reports Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C and D rounds have all been lower than the overall average (Figure 10).

Average financing round size 40.0 36.1 35.0 33.5 31.6 30.0 27.4 25.0 22.7 (US$m) 20.0 17.5 15.0 11.4 11.7 11.3 11.3 10.0 7.9 7.3 6.3 5.4 5.0 3.3 2.4 0.0 Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E LTM Average Size Overall Average Figure 10. Average Size per Round Source. Company reports C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E ) Price Performance: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid 2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 11).

Web 2.0 Index Price Performance 140 120 100 80 60 40 20 0 3/31/2008 4/14/2008 4/28/2008 5/12/2008 5/26/2008 6/9/2008 6/23/2008 7/7/2008 7/21/2008 8/4/2008 8/18/2008 9/1/2008 9/15/2008 9/29/2008 10/13/2008 10/27/2008 11/10/2008 11/24/2008 12/8/2008 12/22/2008 1/5/2009 1/19/2009 2/2/2009 2/16/2009 3/2/2009 3/16/2009 3/30/2009 ^COMP - Share Pricing Index: Web 2.0 X (Market Cap) Figure 11. Web 2.0 Price Performance Source. Capital IQ Ngi Group leads; Sitesearch falls: Many of the companies in our universe had negative stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 22 companies showing negative returns on the week. Ngi Group Inc. (2497-TSE) led the group with a 28.6% return over the past week. Sitesearch Corp. (STPC-OTCBB) had the worst return, dropping 30.0% in the week.

1 Week P rice P erformance Ngi G roup Inc. 28.6% G ree, Inc. 22.5% A Q Interactiv e, Inc. 19.8% Mix i, Inc. 18.1% G ameOn Co Ltd. 17.0% Moggle, Inc 15.0% GungHo Online Entertainment, Inc. 12.6% NEOWIZ Games Corporation 9.5% S hutterfly , Inc. 7.7% PhotoChannel Netw orks Inc. 7.4% Neteas e.com Inc. 4.9% Perfect World Co., Ltd. 4.6% K ings of t Co. Ltd. 4.5% Tencent Holdings Ltd. 3.2% IA C/InterA ctiveCorp. 2.3% CDC Corp. 1.9% XING A G 1.4% Y nk K orea Inc. 1.3% S handa Interactive Entertainment Ltd. 1.2% S park Netw orks , Inc. 0.9% Y edangOnline Corp. 0.8% United Online Inc. 0.5% LookS mart, Ltd. 0.0% S ohu.com Inc. -0.1% Open Tex t Corp. -0.1% Frogs ter Interactiv e Pictures A G -0.2% G amania Digital Entertainment Co., Ltd. -0.6% NetDragon WebS of t, Inc. -0.7% A ctoz S of t Co., Ltd. -1.3% G igaMedia Ltd. -2.6% Modern Times G roup Mtg A B -2.9% DA DA S pA -3.2% S ocial Media V enures , Inc. -4.0% Giant Interactive G roup, Inc. -4.5% Eolith Co. Ltd. -4.6% Webz en Inc. -5.9% Chines e Gamer International -6.1% TheS treet.com, Inc. -6.1% S K Communications Co., Ltd. -6.6% HanbitS of t, Inc. -8.3% Northgate Technologies Limited -9.3% The9 Limited -9.4% Tree.Com, Inc. -10.6% DigitalTow n, Inc. -16.7% S ites earch Corporation -30.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Figure 12. 1-Week Price Performance Source. Capital IQ

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments Company H eadline N otes T he O NE X I M G roup made an offer to acquire 65% stak e T he ON E X IM G roup made an offer to acquire 65% stake in OAO R B C I nformation S y stems (R T S : R B C I ) for $35 million on March 23, 2009. OA O R BC Inform ation S ys tem s in OAO R B C Information S y s tems (R T S : R B CI ) for $35 T he plan envis ages R B C is suing new shares to Onexim, with the proceeds to be us ed to partially repay R B C's debt and to finance ongoing (R TS : RB CI); T he ONE XIM Group million. activities and developme nt. Onex im offered to acquire 65% of the enlarged share capital of R B C . P erfect W orld Launches Open B eta T esting for 'B attle of P erfect Wo rl d C o. Ltd. announ ced that the company will launch open beta testing for i ts first my sterious adventure MMOR P G , 'B attle of the P erfect World C o., Ltd. the Immortals ' on April 2, 20 09 I mmortals' on April 2, 2009. T he famous Chines e magician Lu C hen is the spok espers on of the game. 'B attle of the Immortals ' is on e of (Nas daqGS :PW R D) P erfect Wo rl d's major titles for 2009. I t runs on the company 's proprietary 'C ube' engine, which depicts s cenes in rich texture. T ogether with its abundant s kill effect s ys tems, it gives the game a strong visual impress ion. I t is repres ented by the famous C hines e magician Lu Chen. B oth parties will s hare res ources and ideas with an aim of bringing a new s ens ation to players . C DC C orp. Announces B uy B ack of $168 Million Debt C DC C orp. announced that with the clos ing of its mos t recent agre ements with debt holders, it has bought back more than half of its $168 C DC C orp. (Nas daqGS : CHIN.A) D ue in 2011 million debt due in 2011. T he company announced deal s truck between a debt holder and one of its affiliates will bring the total to $85 million in 3.75% s enior convertible notes . The deal is spli t into two ins tallments , with one purchas e made and a nother scheduled withi n 30 days . The compa ny said it has repurchased debt from eight of 11 creditors . T he9 Limited to Launch S elf-D evelope d W ebgame ; T he9 Limited announced on March 23, 2009 it would launch its firs t s elf-developed webgame J iu Z hou Z han J i (9zwar) on March 31, 2009. T he9 L imited (Nas daqG S :NC TY) Announces E arnings R es ults for the Fourth Quarter Operations and services of the new game will k eep the s tandards that us ed for W orld of W arcraft, enabling players to have firs t-clas s E nded D ecember 31, 2008 ex peri ences , which was formed in J uly 2008. T he company posted a net profit of U S D 6.5 million for the fourth quarter ended D ecember 31, 2008, dropping 55% from US D 14.4 mil lion in the third qu arter of 2008 and 48% from US D 12. 6 million in the fourth quarter of 2 007. Net revenues inched down 1% quarter on quarter and 4% year on year to US D 59. 4 million. F ully diluted earnings per American depos itary s hare stood at U S D 0. 24, compared with U S D 0. 52 in the previous quarter and US D 0. 43 a y ear ago. MOK O. mobi Limited announced it will receive AUD 0.25 MOK O.mobi Limited (AS X : MK B ) announced a private placement of 2, 777,778 shares at AUD 0. 09 per s hare for gros s proceeds of AU D MOK O.mobi Limited (AS X:MKB ); million of funding from T riscreen Media G roup. 250, 000 with new inves tor T riscreen Media G rou p on March 24, 2009. The company wi ll als o is s ue 1, 388,889 options exercisable at AU D 0.2 T ris creen Media Group per share ti ll J uly 25, 2013. T he investor has the right to s ubscribe for further s hares for gros s proceeds of AU D 250,000 in nex t s ix months. T ouris m Aus tralia S elects W eb Content Management Open Tex t Corp. has announced that Touris m Aus tralia has gone live with its W eb Content Management s oluti on from Open Text. T he Open Open T ext C orp. S olution from Open T ext T ext W eb S olution will power two major webs ites : aus tralia. com and media. australia. com. T he new s ites will enable T ourism Australia to (Nas daqGS :OT E X) eventually s tandardize on the Open T ext W eb S olutions platform with one k nowledge base acros s the organiz ation. This will create efficiencies, reduce cos ts and facilitate the rapid update of informa tion and maintenance. S N AP Interactive May S eek Funds S N AP Interactive, I nc. recently provi ded analy sis of its financial condition. The company s aid, “As the C ompany grows and expands its S NAP Interactive, Inc. operations, the need for working capital will increas e. T he C ompany expects to finance its internal growth with cas h provided from (OT CB B:S TVI) operations, borrowings , debt or equity offerings , or some combination thereof. ” T he9 Limited and E lectronic Arts I nc. Announce Open T he9 Limited and E lectronic Arts I nc. annou nced in a press conference held at S hanghai P u D ong E x po C enter that the highly anticipated E lectronic Arts Inc. B eta Tes t for E A S ports FI FA Online 2 to B egin on 22 game E A S P OR TS (TM) F IF A ON LI NE 2 will begin its open beta tes t in mainland China on 22 April, 2009. FI FA ONLI NE 2 is the latest online (Nas daqGS :E R TS ); The9 Limited April 2009 in C hina version of E A S P OR T S ' officially licens ed F IF A football video games . B uilding upon over a decade of s ucces s from the E A S P OR T S FI FA (Nas daqGS :NCT Y) video game franchise, E A S P OR T S F IF A ONLI NE 2 features 30 licens ed leagues , over 10, 000 real players , 31 stadiums, and authentic team k its . T he game has enhanced player controls s o that gamers can direct each of their in-game team's play ers to perform real footba ll moves . E A S P OR TS FI FA ON LIN E 2 als o highly focus es on player interactivity. G amers can s et up matches, track each others' scores, chat in the game and enjoy other community functions. E A S P OR TS F IF A ON LIN E 2 brings the ultimate online football ga ming experience that mirrors the s ophistication, fines se and beauty of the real-world s port. P erfect W orld C o. Ltd. Launches 'B attl e S ong of the P erfect Wo rl d C o. Ltd. announ ced the launch of the new ex pansion pack, 'B attle S ong of the E lves , ' for 'P erfect W orld II ' a 3D fantas y P erfect World C o., Ltd. E lves ' MMOR P G . 'P erfect W orld II ,' which was launched by the C ompany in 2006, contains elements of traditional C hinese culture. B as ed on a (Nas daqGS :PW R D) C hinese cl ass ic, 'S han Hai J ing,' a fabled geographical and cultural account of pre-Qin C hina as well as a collection of mythology, the game vividly reflects a magnificent fantas y world. T he game has been well-received by many online game play ers because of its excellent graphic des ign and innovative game s y stems . T he game has been s ucces sfully licensed to many overs eas countries and regions . In the ex pansion pack 'B attle S ong of the E lves ,' players will be us hered into the 'W orld of Five E lements ,' where they will encounter the mys terious 'F ive E lements E lves . ' The elves are gifted with the power to harness the five elements and have different sk ill sets that can help players of different clas ses with their battles . L ightworks P rogram Dis tribution; W iz zard Media E nters into International S yndication Deal W iz zard Media announced tha t they have entered into an international s yndication deal with Lightwork s P rogram D istribution. Lightworks has with Lightworks P rogram Di stribution acquired the worldwide dis tribution rights for W iz zardX T V , an action sports lifestyle program. W izzard S oftware Corporation (A ME X: WZE ) Linekong Online (B eijing) E ntertainment T ech Co. , Ltd. Linek ong Onli ne (B eijing) E nte rtainment T ech Co. , Ltd. will jointly operate online game The Legend of K ung-Fu with S handa Interactive L inekong Online (B eijing) and S handa Interactive E ntertainment Ltd. to J ointly E ntertainment Ltd. Linek ong will become the third online game partner of S handa through revenue sharing from game operation. E ntertainment Tech C o., L td.; S handa Interactive E ntertainment Operate The Legend of K ung-Fu L td. (Nas daqGS :S NDA) P hotoC hannel N etworks I nc. Announces B oard and P hotoChannel Networks I nc. a nnounced that the annual general meeting held on March 25, 2009, the s hareholders elected management P hotoC hannel Networks Inc. E x ecutive C hanges nominees P eter F itz gerald, P eter S carth, Cory K ent, T homas Niels en, S cott B rownstein, K y le H all and Aaron R allo to the company 's B oard (T S XV:PN) of Directors . Additionally, the B oard of D irectors has approved management's decision to promote S imon B odymore, the C ompany 's V P F inance, to the position of Chief F inancial Officer and C hris T ivel, the company's V P of S oftware D evelopment, to the pos ition of Chief T echnology Officer. R obert Ch isholm has resigned as C FO effective immediately . Mr. C his holm has been retained by the C ompany to as s ist in the trans ition of hi s CF O duties and to continue to provide s trategic and bus ines s development input on a going forward basis . Mr. C hisholm is also considering other long-term opportu nities with the C ompany . Accelerize New Media, Inc. announced that it has Accele ri ze New Media, Inc. (OT CB B : AC LZ) announced a private pl acement of convertible promis sory note for gross proceeds of $617, 000 A ccelerize New Media, Inc. received $0. 62 million in funding. on March 26, 2009. The notes accrue interes t at the rate of 12% per annum and mature in March 2012. Interest will be paid, at the inves tor’s (OT CB B:A CL Z) option, in cas h or in shares of common s tock of the company. I f the interest i s paid in s hares of common s tock , the number of shares is suable to s atis fy the interes t is bas ed on the closing price of the company’s shares , as quoted on the Over-The-C ounter B ulletin B oard, on the trading day immediately prior to the interes t payment date. T he compan y may prepay the n otes in whole or in parts, if pri or to J une 30, 2009, at a premium amounting to the product of 0. 5% for each full month remaining between the prepayment date an d the maturity date times the applicable prepay ment amount, and after J une 30, 2009, without premium. T he inves tors may convert, at their option, into compa ny's common stock the outs tanding principal of the notes , after June 30, 2009 and prior to maturity date, at the les ser of $0.50 per s hare of common s tock or the average clos ing price of the common stock on the last five tradi ng day s prior to the relevant convers ion date, bu

K ings oft Co. L td. a nd G oogle I nc . to L a unc h J a pa nese e- K ings oft Co. L td. a nd G oogle ha v e dec ided to come up with the dua l-bra nd e-di ctiona ry in other la ngua ges. F irst, it will be J a pa nese. G o o gle Inc . (Nas daqG S :G OOG ); D ictiona ry K ings oft ha s by now pushed out J a pa nese vers ions of a nti-virus softwa re a nd W P S in J a pa n. Unl ike the Chines e vers ion, the J a pa nese K ings oft Co . Ltd. (S E H K:3888) G oogle-K ings oft dictiona ry will only be a cc ess ible to pa id users . X I NG AG R eports Cons olida ted E a rnings R es ults for the X I NG AG reported c ons olida ted ea rnings res ults for the yea r 2008. T he c ompa ny reported a 62. 2% yea r-on-yea r jump in its cons olida ted net X IN G AG (XTR A:O1B C) Y ea r 2008 profit for 2008 to E UR 7. 3 million (US D 9.9 million) benefiting from the ris ing membership figures . T he res ult for 2007 incl uded a E UR 1. 1 million loss from dis continued opera tions . T he a djus ted ea rnings before interes t, ta x, deprec ia tion a nd a mortis a tion ca me in a t E UR 12. 9 million for 2008, up from E U R 6. 9 million a y ea r ea rlier. T he rev enues jumped 80% to E U R 35. 27 million. W orlds .c om I nc . a nnounced dela yed a nnua l 10-K filing O n 03/27/2009, W orlds .c om I nc. a nnou nced tha t they will be una ble to file their next 10-K by the dea dline required by the S E C. W o rlds .c o m Inc . (O TCB B: WDDD) U pda te to C DC C orp.’s E quity B uy ba ck on M a rch 27, O n Ma rc h 27, 2009, CD C Corp. a nnounc ed tha t it ha s repurcha s ed a pproxima tely 1, 100,000 s ha res sinc e the beginning of 2009 a t a n C DC C o rp. (Nas daqG S : CH IN .A) 2009 a v era ge pric e of a pproxima tely $0. 83 per s ha re for a tota l cos t of a pprox ima tely $0.91 million. O v er the la s t 12 months , CD C ha s purc ha sed a pprox ima tely 1,700 ,000 sha res a t a n a v era ge pric e of a pproxima tely $1. 38 per s ha re for a tota l cos t of a pprox ima tely $2. 34 million. IB 3 N etworks , Inc . (OT CB B:IBN W ) I B 3 Network s, I nc . a nnounced dela yed a nnua l 10-K filing O n 03/27/2009, I B 3 N etworks , I nc. a nnounc ed tha t they will be una ble to file their next 10-K by the dea dline required by the S E C. J umpTV Inc . R eports E a rnings R es ults for the Fourth J umpT V Inc . reported ea rnings res ults for the fourth qua rter a nd full yea r ended D ecember 31, 2008. F or the qua rter, the c ompa ny reported J umpTV Inc . (TS X :J TV) Q ua rter a nd F ull Y ea r E nded Dec ember 31, 2008 rev enue wa s $5.8 million c ompa red to $5. 3 million in the sa me period in 2007. T he net los s wa s $7.2 million (inc luding $3.8 mill ion of non- c a sh c ha rges) or $0. 13 per s ha re, ba sic a nd diluted a s compa red to $0.2 million (inc luding $0. 6 million of non-c a sh c ha rges) or $0. 00 pe r s ha re, ba s ic a nd diluted in the s a me period a y ea r a go. F or the full yea r, the c ompa ny reported revenue wa s $13.4 milli on c ompa red to $7. 8 million in the p ri or y ea r. The net los s wa s $11. 6 million (inc luding $5. 5 million of non-c a sh c ha rges) or $0. 21 per s ha re, ba sic a nd diluted a s compa red to $4.5 million (inc luding $ 2.6 million of non- c a sh c ha rges) or $0. 11 per s ha re, ba sic a nd diluted in the prior yea r. Figure 13. Key Developments Source. Capital IQ VALUATION MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 billion in market capitalization (Figure 14). Sixty-five of the 90 companies have market caps under US$100 million, with 29 under $10 million. Online gaming companies dominate the top of the list with four of the top six by market cap.

Market C ap (US D m) Tencent Holdings Ltd. Neteas e.com Inc. 3112. 0 S handa Interactive Entertainment 2554.0 2148.0 IA C/InterA c tiveCorp. Open Tex t Corp. 1771. 3 G iant Interactiv e Group, Inc. 1543. 6 1528.4 S ohu.com Inc. Gree, Inc. 1286. 4 Modern Times G roup Mtg A B 1068. 9 716. 4 Perf ec t World Co. , Ltd. Mix i, Inc. 450.3 597. 5 K ings of t Co. Ltd. 425. 9 Chines e G amer International United Online Inc. 357.3 The9 Limited 331. 7 GigaMedia Ltd. 319. 3 315. 9 NEOWIZ G ames Corporation NetDragon WebS of t, Inc. 278. 9 S hutterf ly , Inc. 234. 9 217. 2 S K Communic ations Co. , Ltd. XING A G 197.1 G ungHo Online Entertainment, Inc. 159.6 145. 5 G ama nia Digita l Enterta inment Co. , CDC Corp. 116. 5 DA DA S pA 101.2 95. 1 Y edangOnline Corp. G ameOn Co Ltd. 93. 2 Moggle, Inc 83. 5 75.0 Openw a ve S y s tems Inc. A ctoz S of t Co. , Ltd. 71.1 Digita lTow n, Inc. 67. 9 60. 7 TheS treet. com, Inc. OA O R B C Inf orma tion S y s tems 52. 7 HanbitS of t, Inc. 50. 9 48.9 J umpTV Inc. S pa rk Netw orks , Inc. 47.3 K aboos e Inc. 44.6 44.6 Tree.Com, Inc. B roadWebA s ia Inc. 43.3 PhotoChannel Netw orks Inc. 42.7 33. 5 NeXplore Corporation Ngi G roup Inc. 30. 9 Dolphin Digital Media , Inc. 28. 7 28. 2 S ites earch Corporation 24. 6 G eoS entric Oy j A Q Interactive, Inc. 22. 4 Northgate Tec hnologies Limited 21. 3 20. 9 B ey ond Commerc e, Inc. Webz en Inc. 20. 7 Frogs ter Interactiv e Pictures A G 20. 4 19. 4 Wiz z ard S oftw are Corporation G ra vity Co., L td 19. 2 DXN Holdings B hd 18. 8 17. 4 Eolith Co. Ltd. LookS mart, Ltd. 17. 2 J umbuck Entertainment Pty Ltd. 16. 9 16. 7 Fluid Mus ic Canada , Inc. IdeaEdge, Inc. 14.8 Ex tens ions , Inc. 14.2 12.2 Quepas a Corp. UOMO Media, Inc 11.1 Worlds .com Inc. 9. 4 9. 4 A cceleriz e New Media, Inc. S pectrumDNA , Inc. 9. 2 S NA P Interactiv e, Inc. 8. 6 8. 3 Magnitude Inf orma tion S y s tems Inc. Lingo Media Corporation 7. 2 Y nk K orea Inc. 6. 7 6. 6 CornerWorld Corporation MOK O. mobi Limited 5. 4 B eta w ave Corporation 4. 4 4. 0 L iveWorld Inc. is eemedia Inc. 3. 7 IA S Energy , Inc. 3. 2 2. 6 Wooz y Fly , Inc. 2. 5 B right Things plc Wy nds torm Corporation 2. 2 The Pa rent Company 1. 3 1. 0 V OIS , Inc. ZipLoc al Inc. 1. 0 Unis erv e Communic ations Corp. 0. 8 0. 8 B igs tring Corp. DigitalPos t Interactiv e, Inc. 0. 7 Financ ial Media Group, Inc. 0. 5 0. 2 Tota l S port Online A S A s s ociated Media Holdings Inc. 0. 1 China G atew ay Corporation 0. 0 0. 0 S ocia l Media V enures , Inc. Dibz Interna tional, Inc. 0. 0 S NM G lobal Holdings 0. 0 0 500 1, 000 1,500 2, 000 2,500 3, 000 3,500 4, 000 Figure 14. Market Cap Ranking Source. Capital IQ TEV/Revenue (LTM) averages 4.7x: The overall average TEV/Revenue (LTM) multiple for our group is 4.7x – slightly up from 4.6x last week (Figure 15). However, this is skewed by VOIS (VOIS-OTCBB) at 44.0x, Gree (3633-TSE) at 40.4x and Bigstring (BSGC-OTCBB) at 29.8x. The median is only 1.5x. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x.

T E V/L T M R evenue (x) 50. 0 44.0 45. 0 40.4 40. 0 35. 0 29.8 30. 0 25. 0 21.8 18.1 20. 0 13. 7 15. 0 10.5 9.8 8.0 10. 0 5.3 6. 1 A vera ge, 4.7 3. 8 3.9 4.1 4.3 4.54.6 2. 6 2.83.13.1 3.3 3.53.6 5. 0 2.42.42.42.5 1.01.11.11.2 1.31.41. 5 1.81.9 0.00.1 0.10.20. 20.20.30.30.4 0.50.50. 50.60.70.70.70.80.80. 90.91.01.01. 0 0. 0 NE O WIZ G ames C orporation MO K O .mobi L imited UO MO Media, Inc J umbuck E nterta inment P ty Ltd. G a mania Digital E ntertainment C o., G ungHo O nline E ntertainment, Inc. C hines e G amer Interna tional U nis erve C ommunications C orp. O AO R B C Information S y s tems N orthgate T echnologies L imited DXN Holdings B hd T ree.C om, Inc. C DC C orp. G a meO n C o Ltd. F luid Mus ic C a nada , Inc. S K C ommunica tions C o., Ltd. DigitalP os t Intera ctive, Inc. B ey ond C ommerc e, Inc. T he P a rent C ompany Modern T imes G roup Mtg AB G eoS entric O y j S N M G loba l Holdings Lingo Media C orporation C ornerWorld C orporation United O nline Inc . O pen T ex t C orp. P hotoC hannel Network s Inc . S NAP Intera ctive, Inc . J umpT V Inc . IAC /InterAc tiveC orp. S pa rk N etwork s , Inc . E olith C o. Ltd. G igaMedia Ltd. NetDra gon WebS oft, Inc . is eemedia Inc . S ohu.com Inc . F rogs ter Intera ctiv e P ic tures AG Mix i, Inc . As s ociated Media Holdings Inc . T encent Holdings Ltd. G ree, Inc . V O IS , Inc . XIN G AG B right T hings plc S ocial Media V enures , Inc . L iveWorld Inc . Y nk K orea Inc . H anbitS oft, Inc . ZipLoca l Inc . K aboos e Inc . Y edangO nline C orp. B igs tring C orp. T otal S port O nline AS S hutterfly , Inc . K ings oft C o. Ltd. Acceleriz e New Media , Inc . B eta wav e C orporation DADA S pA Ac toz S oft C o. , Ltd. Wiz z ard S oftware C orporation Figure 15. TEV/Revenue Ranking Source. Capital IQ TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 16 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 8.4x (unchanged from last week). On a geographic basis, the United States has the most companies (40), trading at an average of 5.5x revenue (up from 5.3x last week) (Figure 17). Ten of the companies are Canadian (average 7.2x revenue). Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country 14.0 12.0 10.5 12.1 12.0 10.0 10.5 10.0 8.4 8.0 8.0 7.2 (x) 6.0 5.1 6.3 (x) 6.0 4.6 3.8 5.5 5.1 4.0 3.6 2.7 2.5 1.5 1.5 1.3 3.8 4.0 1.3 1.2 0.7 0.6 0.5 2.0 2.5 0.6 0.2 0.0 1.5 1.4 2.0 0.0 1.3 0.6 0.4 OTCNO OTCPK 0.5 OTCBB NasdaqGM GTSM NasdaqCM NasdaqGS TSE SEHK KOSE OSE CM TSX BSE XTRA NYSE KLSE AIM TSXV ASX 0.2 0.0 0.0 Germany Kingdom Canada United India China Japan Malaysia Hong Italy South Korea Kong States Taiwan Australia Norway Sweden United 5 1 22 2 12 2 9 3 1 2 5 3 1 7 1 1 5 1 1 1 # Companies 1 10 9 40 3 2 1 2 9 6 1 1 1 1 1 # Companies Figures 16 & 17. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ TEV/EBITDA (LTM) averages 9.2x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 9.2x LTM EBITDA (slightly down from 9.4x last week), led by SNAP Interactive’s (STVI-OTCBB) 32.5x multiple (Figure 18). Seventeen of the companies have EBITDA multiples under 7x. The median multiple is 6.6x (vs. 6.4x last week).

T E V/L T M E B IT DA (x) 35.0 32. 5 29.5 30.0 27. 8 25.0 20. 8 20.0 15.4 15.0 11. 5 10. 3 10.7 9. 8 9.6 A verage, 9.2 9. 2 8. 8 8. 5 10.0 6.7 6. 8 6. 5 6. 1 6.2 5.3 5. 2 4.7 4. 3 4. 1 3.9 3. 8 5.0 3.3 2. 8 1.8 0. 9 0.1 0.0 NE O WIZ G ames C orporation J umbuck E ntertainment P ty Ltd. G amania Digital E ntertainment C o., Ltd. G ungHo O nline E ntertainment, Inc. C hines e G amer International U nis erve C ommunications C orp. Northgate T echnologies Limited DXN H oldings B hd O AO R B C Information S y s tems G ameO n C o Ltd. C DC C orp. S K C ommunications C o., Ltd. Modern T imes G roup Mtg AB U nited O nline Inc. O pen T ex t C orp. S NAP Interactive, Inc. NetDragon WebS oft, Inc. S park Network s , Inc. G igaMedia Ltd. IAC /InterActiveC orp. S ohu.c om Inc. XING AG Mix i, Inc. T encent H oldings Ltd. Y edangO nline C orp. K aboos e Inc. S hutterfly , Inc. K ings oft C o. Ltd. DADA S pA Actoz S oft C o., Ltd. Figure 18. TEV/EBITDA Ranking Source. Capital IQ TEV/EBITDA (LTM) by country/exchange: Figure 19 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 13x, while companies on the Nasdaq have the highest multiples (29.5x). On a geographic basis, the United States has the most companies (40), trading at an average of 12.9x EBITDA (Figure 20). Ten of the companies are Canadian (average 5.8x EBITDA). Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country 14.0 35.0 29.5 12.9 30.0 12.0 11.7 25.0 10.0 11.3 20.0 9.8 8.0 (x) 9.2 8.8 13.011.7 (x) 15.0 7.5 11.3 10.9 6.0 5.8 9.9 9.8 8.8 5.2 10.0 7.5 6.8 5.3 4.0 4.6 4.6 4.1 3.8 2.4 4.1 5.0 0.1 0.0 2.0 3.8 0.0 0.0 OTCNO OTCPK OTCBB NasdaqGM GTSM NasdaqCM KOSE NasdaqGS TSE CM TSX BSE XTRA NYSE KLSE TSXV ASX 0.0 Germany United India Hong Canada China Japan Malaysia Italy South Kong Korea States Taiwan Australia Norway # Companies 5 22 7 2 3 12 1 2 2 9 1 5 1 1 5 1 1 # Companies 40 9 3 1 1 2 2 10 9 6 1 1 1 Figures 19 & 20. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ P/E (LTM) averages 15.9x: The average multiple for the 31 companies with positive earnings (and multiples under 100x) is 15.9x LTM EPS (unchanged from 16x last week), led by TheStreet.com’s (TSCM-NASDAQ) 64.1x multiple (Figure 21). Sixteen of the companies have P/E multiples under 10x. The median is just 9.9x.

P /E L T M (x) 70.0 64. 1 60.0 52. 8 47.3 50.0 38. 0 40.0 36. 2 28. 3 30.0 25.8 20. 5 17. 9 20.0 16.0 16. 7 A verage, 15.9 13. 2 13. 8 9. 9 11.2 11. 4 9. 4 9.4 9. 2 9. 0 8.0 10.0 6. 0 3. 7 3. 4 3.1 2. 0 2.1 1. 5 1.2 1.4 1. 0 0.0 NE O WIZ G a mes C orporation J umbuck E nterta inment P ty Ltd. G amania Digital E ntertainment C o. , Ltd. C hines e G amer International Northgate T echnologies L imited DXN Holdings B hd G iant Interactive G roup, Inc. G ameO n C o L td. Modern T imes G roup Mtg AB Neteas e.c om Inc . S handa Interactive E nterta inment L td. Ngi G roup Inc . O pen T ex t C orp. S NAP Interactive, Inc . T heS treet. com, Inc . T he9 L imited Worlds .c om Inc . NetDragon WebS oft, Inc . G igaMedia Ltd. S ohu.c om Inc . S pa rk Network s , Inc . IAC /InterAc tiveC orp. Mix i, Inc . T encent Holdings Ltd. XING AG P erfect World C o., Ltd. Y edangO nline C orp. K ings oft C o. Ltd. S hutterfly , Inc. DADA S pA Ac toz S oft C o. , Ltd. Figure 21. P/E Ranking Source. Capital IQ P/E (LTM) by country/exchange: Figure 22 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 20.3x. On a geographic basis, the United States has the most companies (40), trading at an average of 13.6x earnings (Figure 23). Ten of the companies are Canadian (average 7.1x EPS). Average P/E - By Exchange Average P/E - By Country 40.0 45.0 36.2 39.4 40.0 35.0 35.0 30.0 36.2 32.1 30.0 25.0 25.0 21.6 21.6 20.3 (x) 17.9 (x) 20.0 17.9 17.6 17.6 20.0 14.0 14.0 15.0 15.0 13.2 13.6 9.4 7.1 10.0 6.6 10.0 6.0 6.0 4.0 3.7 3.7 5.0 2.3 5.0 2.3 0.0 0.0 OTCPK OTCBB GTSM NasdaqGS KOSE TSE CM BSE XTRA TSX NYSE KLSE TSXV ASX Germany India China United Canada Malaysia Japan Italy South Korea States Australia Taiwan 1 9 9 2 3 2 40 10 1 1 6 # Companies 12 1 7 22 2 2 2 3 1 9 1 5 1 5 # Companies Figures 22 & 23. P/E Ranking (Exchange, Country) Source. Capital IQ

UPCOMING EVENTS Upc oming E vents Event Date L oca tio n Webs ite W eb 2. 0 E x po Marc h 31-A pril 3 S an Franc is co http://www.web2expo.c om/s f% 20rel= M esh 2009 April 7-8 T oronto www.mes hconference. c om Figure 24. Upcoming Events Source. Company reports E arnings Calendar C ompany D ate & T ime Qu arter Conf Call D etails G i gaMedia L td. (N asdaqG S :G I G M) T uesday , Marc h 31, 2009 8: 00 A M (E DT ) Q 4 2008 N/A W iz zard S oftwa re C orporation (AME X : W ZE ) W ednes day, April 01, 2009 11:00 AM (E D T) Q 4 2008 877-407-0782 Figure 25. Earnings Calendar Source. Company reports

C omparable C ompany Analys is > W eb 2 .0 P ric e P erformanc e C ompa ny Na me C ur rency T ic ker E x change U S D Ma rket C ap ($m) C urrent Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 We ek Acce le riz e N ew Me dia, Inc. US D A CL Z OT C B B 9 .4 0.3 5 75.0 % 1 2.9 % 0 .0% -2 5.5 % -51 .4% -55. 1% Actoz S of t C o., L td. KR W A 052 790 KO SE 7 1.1 1 1,15 0.0 0 -1.3 % 6.2% 9 .3% 30 .6% 35.3 % -20. 9% AQ Inte ractive , Inc. JPY 3 838 TSE 2 2.4 4 0,00 0.0 0 19.8 % 2 3.6 % 36 .1% -2 3.2 % -81 .5% -83. 1% As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .1 0.0 0 0.0 % -72. 0% -5 3.3% -9 3.6 % 27.3 % -97. 2% B igstring Corp. US D B S GC OT C B B 0 .8 0.0 2 -6.3 % -9.1 % -6 .3% -6 2.5 % -91 .7% -93. 3% B e tawave Corpora tion US D B W AV OT C B B 4 .4 0.1 5 0.0 % NM -3 1.8% -5 3.1 % -60 .5% -65. 9% B e yond Commerce, Inc. US D B Y OC OT C B B 2 0.9 0.5 1 21.4 % -33. 8% -3 6.3% -7 9.6 % -73 .2% -84. 5% B right T hings plc GBP A IM:B G T AI M 2 .5 0.0 1 5.6 % 1 7.3 % 32 .0% 10 .0% -47 .2% -68. 9% B roa dW ebAs ia Inc. US D B W BA OT C P K 4 3.3 0.5 1 -32. 0% -66. 0% -4 9.5% -6 0.8 % -80 .4% -83. 0% C DC C orp. US D C H IN .A N as da qG S 11 6.5 1.0 8 1.9 % 3 7.6 % -2 .7% -4 2.2 % -73 .1% -74. 3% C hina G ate wa y C orpora tion US D CGWY OT C B B 0 .0 0.0 0 1 00. 0% 1 00.0 % 0 .0% -8 6.7 % -96 .7% -95. 6% C hine s e G amer International TWD G TS M:3 083 GT S M 42 5.9 17 0.5 0 -6.1 % 3 4.3 % 80 .4% 16 2.3% 56.4 % -11. 0% C ornerW orld C orporation US D CWR L OT C B B 6 .6 0.1 4 -6.7 % -65. 9% -6 8.9% -7 7.0 % -88 .8% -88. 8% D ADA S pA E UR C M :DA CM 10 1.2 4.7 5 -3.2 % -7.3 % -2 9.9% -4 7.3 % -63 .2% -70. 7% D XN Holdings B hd MY R DXN KL SE 1 8.8 0.3 0 5.4 % -4.8 % -1 5.7% -2 2.4 % -42 .2% -47. 3% D ibz Inte rnational, Inc. US D DIB Z OT C P K 0 .0 0.0 0 -90. 0% -90. 0% -9 0.0% -9 8.0 % -98 .0% -98. 0% D igitalP ost Inte ra ctive , Inc. US D DG L P OT C B B 0 .7 0.0 1 0.0 % 6 6.7 % -4 4.4% -8 4.6 % -95 .0% -97. 0% D igitalT own, Inc. US D DG T W OT C B B 6 7.9 2.5 0 -16. 7% 2 5.0 % -2 3.1% -4 1.2 % 13.6 % -59. 0% D olphin Digital Me dia, Inc. US D DP DM OT C B B 2 8.7 0.5 9 -4.8 % 1 8.0 % -2 6.3% -4 4.3 % NM -47. 8% E olith C o. L td. KR W A 041 060 KO SE 1 7.4 51 5.0 0 -4.6 % -7.2 % -8 .0% -1 1.2 % -53 .8% -59. 4% E xte ns ions , Inc. US D E XT I OT C P K 1 4.2 0.1 5 -25. 0% -25. 0% 18 5.7% 50 .0% 0.0 % -85. 1% F inancia l Media G roup, Inc. US D F NGP OT C B B 0 .5 0.0 1 0.0 % -80. 0% -8 0.0% -9 8.0 % -94 .7% -99. 2% F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 1 6.7 0.4 0 14.3 % -8.0 % 66 .7% -6 3.0 % NM -80. 4% F rogs te r Interactive P icture s AG E UR FR G XT R A 2 0.4 6.5 9 -0.2 % 6 0.7 % 11 .7% 24 .3% 43.6 % -13. 9% G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 14 5.5 3 2.6 0 -0.6 % 4 5.9 % 44 .9% 97 .6% 11.1 % -11. 8% G a me On C o L td. JPY 3 812 TSE 9 3.2 9 3,60 0.0 0 17.0 % 0.6% -2 3.7% -1 7.9 % -14 .9% -42. 8% G e oS e ntric O yj E UR G E O1V H LS E 2 4.6 0.0 3 0.0 % -25. 0% 0 .0% -2 5.0 % -57 .1% -57. 1% G iant Intera ctive G roup, Inc. US D GA NYS E 1,5 43. 6 6.8 3 -4.5 % 6.7% 12 .0% -1.3% -45 .5% -60. 3% G iga Media Ltd. US D G IG M N as da qG S 31 9.3 5.9 1 -2.6 % 1.0% 11 .3% -1 6.4 % -64 .4% -70. 2% G ravity C o., L td US D G RV Y N as da qG M 1 9.2 0.6 9 7.8 % 0.0% 38 .0% -3 7.3 % -45 .2% -65. 5% G ree, Inc. JPY T S E :36 32 TSE 1,2 86. 4 5,60 0.0 0 22.5 % 2 3.6 % 4 .1% NM NM -11. 1% G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 15 9.6 13 5,30 0.0 0 12.6 % 1 5.6 % 37 .4% -1 9.5 % -45 .4% -68. 9% H anbitS oft, Inc. KR W A 047 080 KO SE 5 0.9 3,21 0.0 0 -8.3 % -1.1 % -5 .6% -4.7% -35 .6% -54. 2% IAC /InterActiveC orp. US D I ACI N as da qG S 2,1 48. 0 1 5.2 4 2.3 % 2.1% -3 .4% -1 2.5 % -64 .4% -69. 8% IAS E nergy, Inc. US D I AS C .A OT C B B 3 .2 0.0 5 0.0 % 1 14.3 % 50 .0% -7 2.7 % -85 .0% -87. 1% IdeaE dge, Inc. US D O TC B B :ID AE OT C B B 1 4.8 0.3 5 -11. 4% -16. 7% -5 8.8% -8 4.8 % -62 .4% -87. 6% is ee media Inc. C AD IEE T S XV 3 .7 0.0 9 -10. 0% -5.3 % 38 .5% -1 0.0 % -77 .5% -79. 5% J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 6.9 0.5 0 0.0 % 1 1.1 % 28 .2% -1 8.0 % -19 .4% -23. 7% J umpT V Inc. C AD T S X:J T V TSX 4 8.9 0.5 4 35.0 % 4 2.1 % 33 .3% -1.8% -15 .6% -57. 8% K a boos e Inc. C AD T S X:K AB TSX 4 4.6 0.4 0 8.1 % -1.2 % 19 .4% -4 9.4 % -73 .5% -74. 8% K ings oft Co. Ltd. HKD 3 888 S E HK 45 0.3 3.2 5 4.5 % 2 4.0 % 30 .0% 56 .3% 30.0 % -24. 6% Lingo Media Corporation C AD T S XV :LM T S XV 7 .2 0.7 0 -4.1 % -26. 3% -3 6.4% -5 8.8 % -60 .9% -68. 2% Live World Inc. US D L VW D OT C P K 4 .0 0.1 3 -13. 3% 2 25.0 % 22 5.0% -1 3.3 % -31 .6% -82. 7% LookS mart, Ltd. US D L OOK N as da qG M 1 7.2 1.0 1 0.0 % -19. 2% -3 6.5% -6 1.7 % -69 .6% -79. 0% M agnitude Information S ys tems Inc. US D M AG Y OT C B B 8 .3 0.0 2 11.8 % 5.6% 0 .0% -2 4.0 % -13 .6% -36. 7% M ixi, Inc. JPY 2 121 TSE 59 7.5 37 8,00 0.0 0 18.1 % -3.8 % -3 0.9% -4 4.2 % -62 .2% -65. 6% M ode rn Times G roup Mtg AB SE K MT G B OM 1,0 68. 9 13 5.2 5 -2.9 % 6.5% -1 9.7% -4 3.4 % -68 .1% -70. 2% M oggle , Inc US D M MOG OT C B B 8 3.5 2.3 0 15.0 % 1 5.0 % 53 .3% NM NM 0.0 % M OK O.mobi L imited AU D MKB AS X 5 .4 0.0 9 56.7 % 1 08.9 % 44 .6% 70 .9% 2 13. 3% -1.1 % N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 31 5.9 4 5,40 0.0 0 9.5 % 4 6.5 % 12 8.7% 12 6.4% 31.0 % -4.4 % N etDragon W ebS oft, Inc. HKD 7 77 S E HK 27 8.9 4.0 9 -0.7 % 4 8.7 % 36 .8% -1 4.8 % -60 .4% -69. 9% N ete as e.com I nc. US D NT E S N as da qG S 3,1 12. 0 2 5.2 9 4.9 % 2 3.5 % 14 .4% 16 .3% 30.6 % -6.9 % N eXplore Corpora tion US D N XP C OT C P K 3 3.5 0.6 0 0.0 % -7.7 % -3 6.8% -3 6.8 % NM -58. 6% N gi G roup Inc. JPY 2 497 TSE 3 0.9 2 4,30 0.0 0 28.6 % 1 3.6 % -5 2.4% -7 6.7 % -83 .5% -85. 5% N orthgate Te chnologies L imited IN R 5 900 57 BS E 2 1.3 3 1.3 0 -9.3 % -12. 8% -4 8.5% -8 2.3 % -92 .3% -93. 3% Open T e xt Corp. US D O TE X N as da qG S 1,7 71. 3 3 4.1 3 -0.1 % 8.0% 11 .5% -4.5% 0.4 % -12. 7% Openwave S ys tems Inc. US D O PW V N as da qG S 7 5.0 0.9 0 1.1 % 9.8% 50 .0% -2 4.4 % -66 .2% -68. 5% P e rfect W orld C o., Ltd. US D P W RD N as da qG S 71 6.4 1 3.5 8 4.6 % 1 8.1 % -1 8.6% -4 0.0 % -49 .2% -59. 5% P hotoChannel N etwork s Inc. C AD T S XV :P N T S XV 4 2.7 1.6 0 7.4 % -11. 6% 18 .5% -2 3.8 % -55 .6% -61. 4% Quepa s a C orp. US D Q PSA N as da qC M 1 2.2 0.9 6 -15. 7% -25. 0% -4 4.2% -6 9.6 % -64 .7% -72. 3% OA O R B C Information S ys tems US D R BC I R TS 5 2.7 0.3 8 -20. 0% 2 6.7 % -2 4.0% -9 1.7 % -95 .9% -96. 0% S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 2,5 54. 0 3 6.8 1 1.2 % 1 2.2 % 19 .7% 43 .4% 25.8 % -8.2 % S hutte rf ly, Inc. US D S F LY N as da qG S 23 4.9 9.3 4 7.7 % 1 6.3 % 38 .4% 2 .3% -35 .6% -48. 0% S K C ommunications Co., Ltd. KR W A 066 270 KO SE 21 7.2 7,30 0.0 0 -6.6 % 1 0.9 % 33 .9% -3 4.2 % -53 .8% -62. 9% S N AP Inte ra ctive , Inc. US D S T VI OT C B B 8 .6 0.8 0 -15. 8% -15. 8% 14 .3% -1 0.1 % 23.1 % -25. 9% S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 0.0 % 0.0% -8 0.4% -9 9.7 % -100 .0% -100 .0% S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 1.2 0 -4.0 % -7.0 % 11 .1% 38 0.0% NM -76. 0% S ohu. com Inc. US D S OH U N as da qG S 1,5 28. 4 4 0.1 0 -0.1 % -18. 8% -1 3.2% -2 8.7 % -22 .0% -56. 2% S ite s earch C orporation US D S TPC OT C B B 2 8.2 3.5 0 -30. 0% NM NM NM NM -30. 0% S park N etworks , Inc. US D L OV AM E X 4 7.3 2.3 0 0.9 % -9.8 % -9 .8% -3 9.8 % -48 .2% -50. 6% S pectrumDN A, Inc. US D S P XA OT C B B 9 .2 0.1 9 0.0 % 9 0.0 % 26 .7% -3 6.7 % NM -68. 3% T encent Holdings L td. HKD 7 00 S E HK 13, 341 .9 5 7.5 0 3.2 % 2 7.9 % 16 .2% 3 .6% 19.8 % -20. 2% T he P arent C ompany US D K IDS .Q OT C P K 1 .3 0.0 5 6.0 % -91. 7% -9 2.9% -9 7.0 % -99 .1% -99. 2% T he 9 L imited US D NC TY N as da qG S 33 1.7 1 2.3 7 -9.4 % 6.0% -9 .6% -2 3.5 % -37 .8% -56. 6% T he S treet.com, Inc. US D T S CM N as da qG M 6 0.7 1.9 9 -6.1 % 1.0% -2 8.2% -6 5.0 % -78 .2% -79. 0% T otal S port Online A S N OK T OS O OT C N O 0 .2 0.0 4 0.0 % 0.0% -2 0.0% -2 0.0 % -33 .3% -60. 0% T ree.C om, Inc. US D TR EE N as da qG M 4 4.6 4.4 7 -10. 6% -1.3 % 90 .2% -2 0.5 % NM -59. 7% U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 0 .8 0.0 4 -20. 0% -20. 0% 0 .0% -5 0.0 % -88 .6% -91. 1% U nited Online Inc. US D UNTD N as da qG S 35 7.3 4.3 5 0.5 % -6.7 % -2 3.0% -5 3.5 % -61 .2% -65. 2% U OMO Media , Inc US D U OMO OT C B B 1 1.1 0.1 3 44.4 % 8 5.7 % 16 0.0% -4 3.5 % -62 .9% -83. 8% V O IS , Inc. US D V OIS OT C B B 1 .0 0.1 2 -70. 0% -84. 0% -6 0.0% -8 7.4 % NM -97. 9% W ebze n Inc. US D W ZE N N as da qG M 2 0.7 1.7 5 -5.9 % 6 8.3 % 17 3.4% 37 .8% -43 .5% -60. 7% W iz za rd S of twa re Corpora tion US D W ZE AM E X 1 9.4 0.4 3 4.9 % -28. 3% -4 1.9% -6 2.6 % -81 .5% -82. 2% W oozyF ly, Inc. US D W ZY F OT C B B 2 .6 0.1 5 0.0 % 0.0% NM NM NM -96. 3% W orlds .com Inc. US D W DDD OT C B B 9 .4 0.1 8 -2.7 % 0.0% -5 .3% -4 0.0 % -48 .6% -60. 0% W ynds torm C orporation US D W YND OT C B B 2 .2 0.1 2 0.0 % 0.0% 0 .0% -4 5.5 % NM -85. 9% XIN G AG E UR O 1B C XT R A 19 7.1 2 8.8 0 1.4 % -4.0 % 6 .7% -4.7% -19 .1% -38. 3% Y e dangOnline Corp. KR W A 052 770 KO SE 9 5.1 8,40 0.0 0 0.8 % 2 8.6 % 36 .4% 17 .0% -24 .3% -33. 1% Y nk K orea Inc. KR W A 023 770 KO SE 6 .7 3,78 0.0 0 1.3 % 3.4% -1 6.0% -6 6.4 % -75 .6% -81. 0% ZipLocal Inc. C AD T S XV :ZIP T S XV 1 .0 0.0 2 2 00. 0% -25. 0% 50 .0% -8 1.3 % -92 .3% -92. 9% H igh 2 00. 0% 2 25.0 % 22 5.0% 38 0.0% 2 13. 3% 0.0 % Low -90. 0% -91. 7% -9 2.9% -9 9.7 % -100 .0% -100 .0% A vera ge 386.3 3.4% 7.5% 7.1% -24.1% -42.5% -62.1% M edian 0.0 % 1.0% 0 .0% -3 5.5 % -54 .7% -67. 0% Figure 26. Price Performance Source. Capital IQ

C omparable C ompany A nalys is > W eb 2.0 V aluatio n Multiples P rimary US D Market TE V/LT M TE V/ N TM TE V/LT M TE V/NTM C om pany Nam e S ec to r Co untry E xc hange Tic ker Cap ($m) R evenue R evenue E BITDA E BITDA P /LT M E P S P /NT M E P S P /TangBV Acce le rize N ew Me dia, Inc. D irect Marketing U nite d S tates OT C B B AC LZ 9. 4 4.3 x - - - - - - Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 71. 1 0.9 x - 4.7 x - 13 .8x - 1 .4x AQ Inte ractive , Inc. G aming J a pan TSE 3 838 22. 4 - - - - - - 0 .4x As s ocia ted Media Holdings Inc. Mobile U nite d S tates OT C P K AS MH 0. 1 8.0 x - - - - - - B igstring Corp. Ins ta nt Mes s aging U nite d S tates OT C B B BS G C 0. 8 29.8 x - - - - - - B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 4. 4 2.4 x - - - - - - B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 20. 9 21.8 x - - - - - - B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM:B G T 2. 5 10.5 x - - - - - - B roa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 43. 3 - - - - - - - C D C C orp. G aming H ong K ong N as da qG S C HIN .A 1 16. 5 0.4 x 0.4x 9.2 x 7.5x - 1 6.6 x - C hina G ate wa y C orpora tion Mobile U nite d S tates OT C B B CG W Y 0. 0 0.0 x - - - - - - C hine s e G amer International G aming T a iwan GTS M G T S M:308 3 4 25. 9 9.8 x - 20.8 x - 25 .8x - 8 .4x C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 6. 6 6.1 x - - - - - - D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 01. 2 0.6 x - 4.1 x - 6. 0x - - D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 18. 8 0.5 x - 3.8 x - 3. 7x - 0 .4x D ibz Inte rnational, Inc. S NS A pps U nite d S tates OT C P K D IB Z 0. 0 - - - - - - - D igitalP ost Inte ra ctive , Inc. C ontent U nite d S tates OT C B B DGL P 0. 7 3.9 x - - - - - - D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 67. 9 - - - - - - - D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 28. 7 - - - - - - - E olith C o. L td. G aming S outh K ore a K OS E A 041 060 17. 4 1.0 x - - - - - - E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 14. 2 - - - - - - - F inancia l Media G roup, Inc. D irect Marketing U nite d S tates OT C B B F NGP 0. 5 - - - - - - - F luid Mus ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 16. 7 0.7 x 0.5x - - - - 1 .4x F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 20. 4 3.8 x - - - - - 1 .9x G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 1 45. 5 1.1 x - 6.5 x - 16 .7x - 2 .2x G a me On C o L td. G aming J a pan TSE 3 812 93. 2 0.5 x - 1.8 x - 9. 4x - 1 .3x G e oS e ntric O yj Mobile F inland H LS E G E O1V 24. 6 3.6 x - - - - - 5 .3x G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,5 43. 6 - - - - 1. 5x 1 1.4 x 0 .3x G iga Media Ltd. G aming T a iwan N as da qG S G IG M 3 19. 3 1.3 x 1.3x 5.3 x 5.0x 9. 4x 8.9x 3 .1x G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 19. 2 - - - - - - - G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,2 86. 4 40.4 x - - - - - 1 9.6x G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 1 59. 6 1.2 x - 6.7 x - - - - H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 50. 9 0.7 x - - - - - 1 .7x IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,1 48. 0 0.3 x 0.3x 6.1 x 2.4x 16 .0x 2 5.2 x 1 .0x IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 3. 2 - - - - - - - IdeaE dge, Inc. S ocia l Ne tworking U nite d S tates OT C B B OT C B B :IDA E 14. 8 - - - - - - 1 0.9x is ee media Inc. C ontent C anada T S XV IE E 3. 7 1.8 x - - - - - 2 .1x J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 16. 9 1.0 x - 2.8 x - 8. 0x - 2 .0x J umpT V Inc. V ide o C anada TSX T S X:J T V 48. 9 5.3 x - - - - - 3 .5x K a boos e Inc. C ontent C anada TSX TS X:K AB 44. 6 0.9 x 0.8x 11.5 x 5.8x - - - K ings oft Co. Ltd. G aming C hina S E HK 3 888 4 50. 3 3.5 x - 10.3 x - 13 .2x - 2 .9x Lingo Media Corporation Le arning C anada T S XV TS XV :LM 7. 2 2.4 x - - - - - - Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 4. 0 0.3 x - - - - - 1 .9x LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 17. 2 - - - - - - 0 .6x Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 8. 3 - - - - - - - Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 5 97. 5 4.1 x - 10.7 x - 28 .3x - 4 .6x Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,0 68. 9 1.0 x 1.0x 6.2 x 7.3x 3. 1x 7.1x - Moggle , Inc G aming U nite d S tates OT C B B MMO G 83. 5 - - - - - - - MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 5. 4 4.5 x - - - - - 4 .9x N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 3 15. 9 2.4 x - 8.8 x - 17 .9x - 1 0.6x N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 2 78. 9 1.5 x - 3.3 x - 9. 2x - 1 .5x N ete as e.com I nc. G aming C hina N as da qG S NT E S 3,1 12. 0 - - - - 2. 0x 1 3.1 x 0 .6x N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 33. 5 - - - - - - - N gi G roup Inc. Me dia J a pan TSE 2 497 30. 9 - - - - 9. 0x - 0 .5x N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 21. 3 0.2 x - 0.9 x - 1. 4x - - Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,7 71. 3 2.5 x 2.2x 9.8 x 8.5x 36 .2x 1 4.0 x - Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 75. 0 - - - - - 3 0.0 x 1 .0x P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 7 16. 4 - - - - 1. 2x 6.6x 0 .4x P hotoChannel N etwork s Inc. D igital Imaging C anada T S XV T S XV :P N 42. 7 2.6 x 1.8x - 5.5x - 2 0.7 x 9 .8x Quepa s a C orp. S ocia l Ne tworking U nite d S tates N as da qC M QP S A 12. 2 - - - - - - 5 .0x OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 52. 7 0.0 x - 0.1 x - - - - S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 2,5 54. 0 - - - - 2. 1x 1 2.5 x 1 .0x S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 2 34. 9 0.7 x 0.7x 5.2 x 4.6x 52 .8x - 1 .4x S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 2 17. 2 1.4 x - 15.4 x - - - - S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S TVI 8. 6 3.3 x - 32.5 x - 47 .3x - 6 .3x S N M G lobal H oldings Me dia U nite d S tates OT C P K S N MN 0. 0 1.1 x - - - - - - S ocia l Media V e nures , Inc. S ocia l Ne tworking U nite d S tates OT C P K S MV I 0. 0 0.1 x - - - - - - S ohu. com Inc. G aming C hina N as da qG S S OH U 1,5 28. 4 2.8 x 2.4x 6.8 x 5.6x 9. 9x 9.6x 4 .7x S ite s earch C orporation S ocia l Ne tworking U nite d S tates OT C B B STPC 28. 2 - - - - - - 4 0.1x S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 47. 3 0.8 x - 3.9 x - 11 .4x - - S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 9. 2 - - - - - - 9 .9x T encent Holdings L td. P orta l C hina S E HK 700 13,3 41. 9 13.7 x - 27.8 x - 38 .0x - 1 5.5x T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 1. 3 0.2 x - - - - - - T he 9 L imited G aming C hina N as da qG S NC T Y 3 31. 7 - - - - 1. 0x 8.3x 0 .1x T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 60. 7 - - - - 64 .1x - 0 .6x T otal S port Online A S Me dia N orway OT C NO T OS O 0. 2 4.6 x - - - - - - T ree.C om, Inc. P orta l U nite d S tates N as da qG M TR E E 44. 6 0.2 x 0.2x - - - - 0 .7x U nis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 0. 8 0.1 x - 29.5 x - - - - U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 3 57. 3 1.0 x 0.7x 4.3 x 2.8x - 6.0x - U OMO Media , Inc Me dia C anada OT C B B U OMO 11. 1 18.1 x - - - - - - V O IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B VOIS 1. 0 44.0 x - - - - - 2 .3x W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 20. 7 - - - - - - 0 .0x W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 19. 4 3.1 x - - - - - - W oozyF ly, Inc. S ocia l Ne tworking U nite d S tates OT C B B W ZY F 2. 6 - - - - - - - W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 9. 4 - - - - 3. 4x - - W ynds torm C orporation C ontent U nite d S tates OT C B B W YND 2. 2 - - - - - - - XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 1 97. 1 3.1 x - 9.6 x - 20 .5x - 5 .3x Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 95. 1 1.9 x - 8.5 x - 11 .2x - 5 .2x Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 6. 7 0.5 x - - - - - - ZipLocal Inc. D ire ctory C anada T S XV T S XV :ZIP 1. 0 0.8 x - - - - - - H igh 13,3 41. 9 44.0 x 2.4x 32.5 x 8.5x 64 .1x 3 0.0 x 4 0.1x Low 0. 0 0.0 x 0.2x 0.1 x 2.4x 1. 0x 6.0x 0 .0x A vera ge 386. 3 4.7x 1.0x 9.2x 5.5x 15.9x 13.6x 4.5x Median 23. 5 1.5 x 0.7x 6.6 x 5.5x 9. 9x 1 1.9 x 2 .0x Figure 27. Valuation Comparison Source. Capital IQ

C o mparable Co mpany A nalys is > W eb 2.0 S umma ry by C ou ntry Co mpan y N ame US D Market Cap ($m) Avg U S D Market Cap ($m) US D L TM T otal R ev ($m) U S D L TM T otal E B ITDA ($m) E B ITDA % 40 23, 857.3 2,650. 8 3,335. 6 1,649. 3 48.0% United S tates China C hina C hina C hina China Ca nada 10 United S ta tes 3, 437.4 S weden 1,068. 9 United S ta tes 3,115. 0 S weden 252. 5 Australia 37.2% China 9 Ja pan 2, 190.1 J apan 365. 0 S weden 1,579. 2 C anada 186. 9 Taiwa n 29.3% S outh K orea 9 Cana da 1, 934.5 T ai wan 296. 9 C ana da 887. 3 J a pan 133. 5 J apa n 26.1% J apa n 6 S weden 1, 068.9 C ana da 193. 4 S outh K orea 521. 5 U nited S tates 125. 8 India 17.6% Taiwan 3 Taiwan 890.7 Hong K ong 116. 5 J a pan 507. 1 T aiwan 84. 3 S weden 16.0% Australia 2 S outh K orea 814.2 G ermany 108. 7 Hong K ong 428. 1 S ou th K orea 59. 4 Italy 16.0% G ermany 2 G ermany 217.5 Italy 101. 2 T aiwan 347. 6 I taly 35. 6 Mala ys ia 13.3% Norway 1 Hong K ong 116.5 S outh K orea 90. 5 Italy 223. 0 I ndia 23. 2 R us sia 13.1% 1 101.2 85. 9 139. 3 18. 8 5. 5% Hong K ong Italy United S ta tes R us sia H ong K ong S outh K orea 1 52.7 52. 7 131. 8 18. 2 4. 4% Finla nd R us sia R us s ia India R us sia Hong K ong 1 24.6 24. 6 76. 0 11. 5 -9.0% Italy Finland F i nland Malays ia G ermany United S tates 1 22.2 21. 3 51. 2 10. 1 -14. 3% United K i ngdom Australia In dia G ermany M alays ia G ermany 1 21.3 18. 8 13. 2 2. 5 -15. 4% India India Malay si a Australia Aus tra lia Ca nada 1 18.8 11. 1 5. 4 -1. 0 -50. 6% S weden Malays ia Aus tralia F inland N orway Norway 1 2.5 2. 5 2. 0 -1. 6 #D IV /0! R us sia United K ingdom United K ingdom Norwa y U nited K ingdom United K ingdom 1 0.2 0. 2 0. 2 -12. 4 #D IV /0! Mala y sia Norwa y Norway United K ingdom F inland Finla nd G rand To tal 90 Gran d Total 34, 770.6 G ran d T otal 386. 3 G ran d Total 11,363. 4 G rand Total 2,596.6 G rand To tal 8. 9% Figure 28. Comparison by Country Source. Capital IQ C omparable C ompany A nalys is > W eb 2.0 Su mmary b y Ex c hange C om pany Nam e U S D Market Cap ($m) Avg US D Mar ket C ap ($m) U S D LT M T otal R ev ($m) U S D LT M Total E B IT DA ($m) E B IT DA % 22 14, 071.2 4,690. 4 1, 579. 2 1,410. 1 61. 9% OT C B B SE HK S E HK OM N a sdaqG S NYS E N as da qG S 12 N asdaqG S 13, 265.0 NY S E 1,543. 6 N a sda qG S 482. 3 S E HK 593. 4 S EHK 43. 0% OT C P K 9 TSE 2, 030.4 Na s daqG S 1,105. 4 S E HK 413. 4 OM 252. 5 AS X 37. 2% K OS E 7 NYS E 1, 543.6 OM 1,068. 9 NYS E 233. 2 NYS E 144. 4 GT SM 32. 0% TSE 5 OM 1, 068.9 TS E 406. 1 CM 223. 0 TSE 112. 8 TSE 27. 7% N as da qG M 5 K OS E 774.3 G TS M 285. 7 R TS 139. 3 K OS E 54. 6 N asdaqG S 27. 5% T S XV 5 GTS M 571.4 OS E 159. 6 BSE 131. 8 GT S M 36. 3 AM E X 21. 5% S E HK 3 OT CB B 322.0 K OS E 110. 6 OS E 115. 8 CM 35. 6 OS E 17. 8% TSX 3 XT R A 217.5 XT R A 108. 7 N a sda qG M 84. 3 BSE 23. 2 BSE 17. 6% 2 162.5 101. 2 78. 3 20. 7 16. 0% A ME X N asdaqG M CM TSE OS E OM 2 159.6 52. 7 76. 0 18. 2 16. 0% XT R A OS E RT S K LS E R TS CM 2 110.3 36. 8 73. 5 11. 5 13. 3% ASX TSX TS X GT S M XTR A K LS E 2 101.2 33. 3 66. 5 10. 1 13. 1% GT SM CM AME X K OS E K LS E R TS 1 96.3 32. 5 31. 7 5. 8 5.8% O T C NO OT CP K Na s daqG M AM E X AM E X K OS E 1 66.7 24. 6 25. 6 2. 5 1.1% H LS E AM E X HL S E XT RA AS X N asdaqG M 1 55.3 21. 3 24. 9 -1. 0 -3. 9% OS E T S XV BS E TSX OT CN O TSX 1 52.7 18. 8 21. 0 -1. 6 -14.3% CM R TS KLS E OT CP K AI M XT R A 1 24.6 14. 6 9. 3 -5. 8 -15.6% B SE H LS E O TC B B T S XV TSX T S XV 1 22.2 12. 2 6. 6 -9. 5 -29.4% N as da qC M AS X Na s daqC M AS X T S XV O T CP K 1 21.3 11. 1 5. 4 -11. 8 -37.2% NYS E BS E AS X HLS E N a sdaqC M O T CB B 1 18.8 11. 1 2. 0 -12. 4 -50.6% A IM KLS E TS X V OT CN O HLS E O T CN O 1 12.2 10. 7 1. 7 -14. 2 #DI V /0! OM N asdaqC M O TC P K OT CB B N a sdaqG M AI M 1 2.5 2. 5 0. 2 -27. 2 #DI V /0! R TS AI M AIM AI M OT CP K H LS E 1 0.2 0. 2 0. 1 -51. 7 #DI V /0! K LS E OT CN O O TC NO N a sda qC M OT CB B N asdaqC M 90 34,770.6 386.3 138.6 2,596.6 8.9% G rand To tal G rand T otal G rand Total G rand T otal G r and T otal G rand T otal Figure 29. Comparison by Exchange Source. Capital IQ

Financing - Last Three Months (US$ m) Month Company Name Country Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E Grand Total USA 17.0 17. 0 Jan-09 Aster Data Systems USA 13.0 13. 0 Yodle USA 12.5 12. 5 AdMob France 11.4 11. 4 VirtuOz USA 10.0 10. 0 IMVU USA 10.0 10. 0 NewsGator USA 10. 0 10. 0 Go Internet Media USA 10.0 10. 0 DECA Korea 10. 0 10. 0 Nurien USA 10.0 10. 0 RatePoint USA 9.0 9.0 One True Media Israel 8.0 8.0 SundaySk y USA 8.0 8.0 Play Hard Sports USA 7.5 7.5 JibJab USA 7.0 7.0 Xobni USA 6.5 6.5 InsideView France 6.2 6.2 Kewego USA 6.0 6.0 Fl iqz USA 6.0 6.0 Motionbox USA 6.0 6.0 SocialMedia USA 5.0 5.0 Sportsblogs USA 5.0 5.0 AboutUs USA 5.0 5.0 Geni USA 5.0 5.0 Gbox USA 3.5 3.5 E-Global Sports Network USA 2.5 2.5 mEgo Austria 2.5 2.5 Tripwolf UK 1.2 1.2 Hubdub USA 1.0 1.0 Snooth Canada 1.0 1.0 CoveritLive UK 0.5 0.5 TweetDec k USA 0.3 0.3 BackType Canada 0.2 0.2 Identi.ca USA Meez Jan-09 Total 5.5 45. 2 73.9 82.2 10.0 216.8 USA 35.0 35. 0 Feb-09 Twitter South Africa 20.0 20. 0 Synthasi te USA 18.0 18. 0 Tremor Media USA 15.0 15. 0 Offerpal Media UK 13.5 13. 5 Imagini USA 12.5 12. 5 Emergent Game Technologies Israel 12.0 12. 0 Outbrain France 9.0 9.0 Tvtrip China 6.0 6.0 Tongxue USA 5.6 5.6 Oodle USA 4.3 4.3 Te xtDigger USA 4.2 4.2 OneSpot Canada 4.0 4.0 Mixpo USA 4.0 4.0 Fe tchDog Netherla nds 4.0 4.0 Virtual Fairground USA 3.0 3.0 7 Billion People USA 2.9 2.9 Fa milyLink.com USA 2.3 2.3 WhistleBox UK 2.0 2.0 Mendel ey USA 2.0 2.0 Outright Israel 1.6 1.6 Tvi nci USA 1.4 1.4 Fi ltrbox Netherla nds 1.3 1.3 MMO Life USA 1.3 1.3 Cake Financi al UK 0.7 0.7 fa v.or.it Feb-09 Total 13. 3 24. 8 76.4 58.6 12.5 185.5 USA 15.0 15. 0 Mar-09 Vidyo USA 12.5 12. 5 Buzznet USA 12.0 12. 0 Le ndingClub USA 12. 0 12. 0 SendMe Inc. USA 10.5 10. 5 Auditude USA 10.0 10. 0 Visible Measures USA 10. 0 10. 0 SuperSecret USA 5.5 5.5 Greystripe USA 5.0 5.0 OMGPOP USA 4.1 4.1 Apture USA 4.0 4.0 Simulmedia Canada 3.9 3.9 Tynt USA 3.2 3.2 AnySource Media USA 2.0 2.0 Hunch USA 2.0 2.0 Sports Composite DE USA 1.3 1.3 AdultSpace Netherla nds 1.3 1.3 Myngle USA 0.8 0.8 33Across Argentina 0.6 0.6 Three Melons Mar-09 Total 1.3 1.3 0.6 30. 3 30.3 43.0 12. 0 118.7 Grand Total 20. 1 1.3 0.6 100.3 180.5 183.8 12. 0 22.5 521.0 Figure 30. Financing, Last Three Months Source. Company reports

C ompany Des c riptio ns - C u rrent Mo nth C apital Market A c tivity C ompany HQ W ebs ite Des criptio n U nited S ta tes www. 33ac ross .c om 33Acros s , named after the 33% of internet users at whic h its ma rketing is directed, propos es to use s ocial networks to mak e online 33A c ro s s Inc . a dvertising more effe ctive. I n a departure from wides pread direct res pons e adv ertis ing, this compa ny is developing tec hnology to identify and target mes sages to thes e mos t influential web users , in order to us e their sway to the c lient’s advantage. N /A www. adultspac e.c om AdultS pa ce is a n a dult targeted s oc ial network . A dults pac e U nited S ta tes www. anys ourc emedia. c om F ounded in 2006, AnyS ourc e Media is a rapidly -growing, innov ative tec hnology c ompany enabling c onsumer elec tronics manufacturers ’ to A nyS ourc e Media bring a wide range of Internet-delivered video directly into their devices . Any S ource Media provides an I nternet-ena bled T V (iTV ) platform, called the I nternet V ideo N aviga tor™ (I V N ) to s ilic on c ompa nie s a nd c onsumer electronic s man ufa c turers ’ of HD TV worldwide. The IV N platform inc ludes embedded s oftware ins ide the HD T V , a full -s pec trum of both bra nded and us er-generated video con tent delivered over a direct Internet connec tion, as well as a targeted a dvertising and us er management s ys tem managed at the I V N data c enter. S imilar to a video R S S reader for televis ion, the IV N da ta center c ommunicates with a wide-range of c ontent pro viders to c ollec t the informa tion neces s ary to populate the friendly IV N user interface on the HD TV s creen. T he c ontent desc ription da ta is enha nced and norma liz ed s o the navigation e xperience is s imple and cons is tent. T he nav igation da ta is then delivered to the TV along with adv ertis ing, preferences and other trans ac tion information. U nited S ta tes www. apture.c om Apture allows publishers and bloggers to link a nd inc orporate s everal media items into a dy na mic layer above their pages . P ublis hers have to A pture In c embed a single line of J avasc ript c ode into their site a nd then s ign i nto their Aptu re ac count. B y highlighting words or phrases Apture allows publishers to link, providing appropriate content to c hoos e between. W hen the reader clic ks a s mall wind ow opens with related items selec ted by the publis her. T he reader ca n v iew the content be it tex t, video o r photos. R eaders ac ces s these items without leaving the original page. U nited S ta tes www. auditude.c om Auditud e, Inc . operates as a b usines s-to-bus iness c ompany. T he c ompa ny’s produc t is a n a d platform for s yndic ated media ma nagement A uditude, In c . a nd targeting bas ed on automated c ontent identific ation. T he c ompany helps c ontent owners, publishers , and a dvertisers to cha nge the way me dia is c ons umed online. T he c ompany was founded in 1999 and is ba s ed in P alo Alto, California. U nited S ta tes www. buzz net.c om B uzz net, Inc . operates as a s oc ia l network ing W ebs ite. The company provides an integrated media and c ommunity platform tha t enables B uz z net, Inc . users to network with bands , trendsetters , and peers throu gh s elf-c reated c ontent, videos , photos, and journals . I t also offers mus ic and pop culture topic s. The company was founded in 2002 and is ba sed in Holly wood, C alifornia. U nited K ingdom www. govi ral .c om G oV iral opera tes as a online distributor of v ideo c onte nt. T he c ompany wa s founded in 2005 and is ba s ed in L ondon, U nited K ingdom. G o Viral U nited S ta tes www. greys tripe.c om G reys tripe, Inc . operates an ad-s upported mobile games and a pplic ations dis tribution pla tform. The c ompa ny provides online gaming and in- G reys tripe, Inc . game a dvertis ing s olutions through publis her s ites . I ts A dW R AP product suite ena bles bra nd advertis ers to c ommunic ate their brand me ss ages to mobile audienc e; publis hers to s erve ads through their ga mes ; and c ons umers to download ga mes , a s well as delivers images , videos , and sc rolling ba nners to mobile games and a pplications . T he co mpany ’s s olutions als o include AdW R AP C a mpaign Manager, a n a dvertising W eb interface that a llows advertis ing agencies and a d resellers to crea te and monitor mobi le in-ga me a d c ampaigns ; AdW R AP Ca talog P rogram, which enables partners to dis tribute a mobile ga me ca talog; and AdW R AP for P ublis hers platform that provides mobile game publis hers an automated proc ess , whic h ad-enables mobi le games and applica tions . It s evers developers , carriers and dis tributors , game pla y ers, and c onsumer W eb s ites . The c ompany is based in S an F rancis co, Ca lifornia. U nited S ta tes www. hunc h.c om N/A H unc h U nited S ta tes iminlik ewithyou. com I'm in lik e with you provides online interaction with friends. I t facilitates to c re ate a game, brows e games and profiles, find friends , a nd dra w I'm in like with you pictures . The compa ny is bas ed in the U nited S tates . U nited S ta tes www. lendingc lub.c om L ending C lub Corporation develops and ma rk ets network ing solutions for the financ ial indus try . T he c ompany’s s uite enables s oci a l lending L ending C lu b C or po ration networking s ervic es. Addi tiona lly , it provides risk as s ess ment and inv estment a dvis ory s olutions . L ending Club mark ets its products under the L endingMatc h brand name. The compa ny is headquartered in S unny vale, C alifornia. U nited S ta tes www. miva . com MI V A, I nc. , along with its s ubsidia ries , operates as an online media a nd adv ertis ing network company primarily in N orth A merica and E urope. MIVA Inc . It o pera tes in two div is ions, M IV A D irect a nd MI V A Media. T he MIV A D irect di vis ion operates a portfolio of c ons umer des tina tion W eb s ites , a s well as various cons umer-oriented intera c tive products , including toolbars, home pages, and downloada ble des ktop wallpapers and sc reens a vers . Its AL O T toolba rs produc ts offer c onsumers direc t link s to va rious releva nt affinity c ontent, and provide searc h func tionality, utiliz ing searc h res ults and ad lis tings primarily from a third-party provider. I ts portfolio of cons umer des tina tion W eb s ites inc ludes vertic a l content s ites and entertainment-oriented sites . The MI V A Media divis ion is an auc tion ba s ed pa y -per-clic k advertis ing and publis hing network. I t c onnects buy ers and s ellers online by dis playing releva nt and ti mely text ads in res ponse to c onsumer searc h or brows ing ac tivity on s elec t Internet properties. M IV A M edia publis her network includes various third party and M IV A owned properties, including, porta ls , vertical and category spec ific content W eb sites , commerce W eb s ites, c ommunity W eb sites, sea rc h engines , direc tories , toolba rs, and des k N etherlands www. myngle. com My ngle B . V . prov ides an onl ine la ngua ge e-lea rning platform. T he company brings together la ngua ge tea c hers and s tudents enabli ng live Myngle B .V. less ons or conv ersational practice over the I nternet. M yngle B .V . was founded in 2007 and is bas ed in Amsterdam, The N etherlands . U nited S ta tes www. bemuz. com P ixa z za , I nc . provides v isual c ommerc e enabling s olutions . It offers a platform that enables s hoppers to buy produc ts from photos s een on P ixaz za, Inc . W ebsites of W eb publishers . P ix azz a, Inc . was incorporated in 2007 and is bas ed in M ounta in V iew, C alifornia. U nited S ta tes www. s endmemobile. com S endMe, I nc ., a mobile media company, provides direc t to c onsumer mobile enterta inment s ervic es in the United S tates. I t prov ides S endMe, Inc . interac tive mobile trivia, ringtones, wallpaper, and mobi le s weeps tak es. The company als o prov ides horos copes , jok es, gos s ips, romanc e tips , s ports trivia, pick -up lines, diet tips , da ily ins pirations , and fan clubs . S endM e, Inc . wa s founded in 2 006 and is ba s ed in S a n F ranc isc o, Ca lifornia. U nited S ta tes http ://www. si mulmedia. com/ S imulmedia is a New Y ork C ity-bas ed media mark eting c ompa ny dedic a ted to improv ing the effectivenes s of program promotion on S imulmedia, Inc . televisi on. The company is pioneering the development of predictive technology to hel p televis ion c ompanies deliver the right on-air promotions to the right viewers at th e right time. U nited S ta tes www. rotohog.c om S ports Composite DE , I nc ., doing busi ness a s R otoHog, opera tes a s a fantas y sports ga me on the W eb. T he c ompan y’s s ervic es inc lude S po rts Co mpo s ite DE Inc . a thlete price updates ; bas eball s c ores, s tats , a nd c hats; ma rk et analys is ; and c ompetitive roster views . S ports Co mpos ite D E , Inc . was founded in 2006 and is bas ed in Inglewood, California. U nited S ta tes www. s upersec ret. c om S uperS ec ret is a s uper-fun, sec ret world full of a dventures and s urprises . C hoose a c harac ter a nd do all your fa vorite stuff: c hat with friends , S uperS ec r et, Inc . play games all da y , explore s ecret plac es , get clu es, and shop for tasty trea ts a nd exc ellent c lothes . T he more y ou pla y, the older your charac ter gets, until you're a teenager with a pet, an apa rtment, and ac ces s to really c ool ha ngouts . T hat means lots of S uperS ecret birthday s—far more tha n jus t the us ua l one a y ear. E very time you vis it, there'll be fri ends waiting to play and new things to be disc overed. Y ou c an even pla y pranks on people, if you're that s ort of pers on. And we think maybe you are. S uperS ec ret. L ike life. B ut way more fun. Argentina www. threemelons . com W e c reate games for enterta inment and mark eting. W e work with video games publis hers , med ia c ompanies and F ortune 500 advertisers T hree Melons (and their ad agenc ies) to c reate addicting, s hort-s es sion video ga mes for W eb, P C , Mac and Cons oles . C anada www. tynt.c om T y nt Multimedia I nc . develops hos ted s olutions for online publis hers , soc ial networks , a nd online c ommunities to inc rease us er engagement. T ynt Multimedia Inc . It o ffers Trac er, a tec hnology that records the user action and automa tic ally adds a link back to the original content when it is pa s ted when a user highlights or c opies text or images from W eb s ites . T he c ompany was founded in 2007 a nd is bas ed in C algary, C anada. U nited S ta tes www. vid yo. com V idyo, Inc . provides disruptive video tec hnology for traditio nal video c ommunic ati ons. I t des igns software development tool kit that a llows its V idyo , Inc . tec hnology to be easily integra ted into s oft switc h or gatewa y , video networking and c onferencing sy s tems, personal communic ation devic es, presenc e ba sed IM produc ts or s ervic es , W eb c onferenc ing products or services , audio and v ideo c onferenc ing serv ices , a nd back bone and V O IP network s. T he company wa s formerly known as L ayered Media , I nc. and c hanged its name to V idyo, I nc . in O c tober 2007. T he company was founded in 2005 and is hea dqua rte red in Hac kens ac k, N ew J ers ey. U nited S ta tes www. vis iblemeasu res . com V is ible M easures C orporation operates as an independent third-party mea surement c ompa ny for Internet video publis hers, a dvertisers , and V is ible Meas ures Co rporatio n viral marketers. I t s peciali zes in meas uring the cons umption and distribution of I nternet v ideos . Its s olutions inc lude V isible S uite, which shows video publis hers how their audienc es interac t with their content; V is ibleCa mpaign, whic h shows advertisers and agenc ies the true vira l reach a nd audience enga gement of Internet video c a mpaigns; and T rue R each, which measures total a udienc e that has been expos ed to a viral video c ampa ign. T he company als o offers analytic, data, and profes si onal s ervic es. Its products and serv ic es help I nternet video publishers and adv ertis ers to unders tand audienc es’ beha vior, as well as predict a nd ana ly ze the s ucc ess of Internet video programs. The company was founded in 2005 and is bas ed in B oston, M ass achus etts . Figure 31. Company Descriptions Source. Company reports, Capital IQ, Crunchbase

RELEVANT DISCLOSURES APPLICABLE TO: NONE LIST OF DISCLOSURE TERMS: None applicable. 1. ANALYST CERTIFICATION Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m. T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) . Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550 www.researchcapital.com

09-03-31 Web 2.0 Weekly

by David Shore on Mar 31, 2009

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09-03-31 Web 2.0 Weekly — Document Transcript