New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement. Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively. A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.

1. SOFTWARE & SERVICES 14 JULY 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
PANDO RA RAISES $35 MILLION POST RO YALTY AG REEMENT
N EW R O YA L T Y AG R E EM E NT F OR W E B CA ST IN G A ND C O P YR IG HT F IR MS
SoundExchange, a non-profit royalty collecting organization associated with the Recording Industry Association of
America (RIAA), agreed this past week to a new deal regarding royalty rates for webcasting. Under the new
agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the
70% that could have been imposed under an earlier deal. W hile the deal was initially agreed to by three smaller
Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated that it would
sign on to the agreement.
Online Media companies lead financing: Two online media companies, Pandora (Internet Radio) and QuickPlay
(Mobile Video), have secured the largest financing transactions thus far in July ($35 million and $12 million,
respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per
transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May
(excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
Financing Activity Last Three Months
200.0 9.0
8.3
180.0 8.0
160.0
7.0
6.4
140.0
6.0
120.0
5.0
(US$m)
(US$m)
4.7
100.0
4.0
80.0
3.0
60.0
2.0
40.0
20.0 1.0
0.0 0.0
May-09 (excl FB) Jun-09 Jul-09
Total Average
A w eak price performance week: The companies in our universe had weak stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week.
Gravity (NasdaqGM:GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return,
dropping 26.4% in the week.
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

2. Page 2
THE WEB 2.0 UNIVERSE
Ninety two public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market
cap of ~$52.5 billion (Figure 1). The average market cap for the group is ~$584 million (but a median of only $50.0
million), with average trailing revenue of $153.8 million (median $53.6 million). The companies are also generally
profitable, with a median EBITDA margin of 13.2%. On a valuation basis, the overall average is 5.3x trailing revenue
(median 1.6x) and 9.2x trailing EBITDA (median 9.2x). Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 3/31/2009 AC LZ OT C B B US D United S ta tes 0. 55 15. 2 4. 1 (4.4) NM 4. 9x - 11
Actoz S oft C o. , Ltd. 3/31/2009 A052790 K OS E KR W S outh K orea 25,800 169. 8 88. 2 19. 2 21. 7% 1. 6x 7. 4x NA
AQ Interactive, Inc. 3/31/2009 3838 TS E JPY J a pan 55,200 32. 4 66. 8 4.2 6.3% 0. 0x 0. 6x NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 02 0.9 0. 1 (2.3) NM 19.2x - 3
B igs tring C orp. 3/31/2009 BS GC OT C B B US D United S ta tes 0. 04 2.1 0. 1 (2.0) NM 48.3x - 4
B eta wave C orporation 3/31/2009 B W AV OT C B B US D United S ta tes 0. 09 2.6 8. 4 (12. 6) NM - - 53
B eyond C ommerce, Inc. 3/31/2009 B Y OC OT C B B US D United S ta tes 0. 40 18. 0 7. 1 (9.5) NM 3. 2x - 69
B right T hings plc 9/30/2008 AIM: B G T AIM GBP United K ingdom 0. 01 4.1 0. 3 (1.8) NM 15.2x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 23 19. 5 0. 0 (4.6) NM - - 46
C DC C orp. 3/31/2009 C HIN. A Na s daqG S US D Hong K ong 1. 42 150. 7 389.9 30. 8 7.9% 0. 4x 5. 3x 2, 227
C hangyou. com L imited 3/31/2009 C Y OU Na s daqG S US D C hina 37. 61 2,068. 6 222.5 135.1 60. 7% 8. 5x 13. 9x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 02 0.3 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 3/31/2009 G T S M: 3083 GTS M TWD T aiwa n 430 1,089. 6 55. 7 31. 2 56. 0% 18.4x 32. 9x NA
C LIC K E R Inc. 2/28/2009 C LK Z OT C B B US D United S ta tes 0. 02 1.3 7. 2 2.4 34. 1% 0. 1x 0. 3x 22
C ornerW orld C orpora tion 1/31/2009 CWR L OT C B B US D United S ta tes 0. 06 3.9 1. 3 NM NM 4. 1x - NA
C yberplex Inc. 3/31/2009 T S X :C X TS X C AD C anada 2 88. 9 70. 3 7.3 10. 3% 1. 2x 11. 7x NA
DADA S pA 3/31/2009 C M: DA CM E UR Italy 6. 15 139. 1 234.4 34. 3 14. 6% 0. 8x 5. 5x 578
DXN Holdings B hd 2/28/2009 DX N K LS E MY R Ma la ys ia 0. 35 22. 4 76. 8 10. 6 13. 8% 0. 5x 3. 4x NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 3/31/2009 DG LP OT C B B US D United S ta tes 0. 04 3.0 0. 7 (2.6) NM 6. 3x - 7
DigitalT own, Inc. 2/28/2009 DG T W OT C B B US D United S ta tes 2. 00 54. 2 NM (3.0) NM - - 3
Dolphin Digital Media , Inc. 3/31/2009 DP DM OT C B B US D United S ta tes 0. 45 23. 3 0. 8 (3.7) NM 31.3x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 755 41. 8 14. 1 (3.3) -23. 6% 3. 1x - NA
E xtens ions , Inc. 3/31/2009 E XT I OT C P K US D United S ta tes 0. 10 4.4 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 3/31/2009 T S X :F MN TS X C AD United S ta tes 0. 65 29. 5 5. 0 (6.9) NM 4. 1x - NA
F rogs ter Interactive P ictures AG 12/31/2008 FRG XT R A E UR G ermany 11. 50 37. 7 3. 2 (6.1) NM 11.2x - NA
G ama nia Digita l E ntertainment C o., Ltd. 3/31/2009 6180 GTS M TWD T aiwa n 55. 20 252. 6 124.9 20. 7 16. 6% 1. 8x 11. 1x NA
G ameOn C o Ltd. 3/31/2009 3812 TS E JPY J a pan 102,000 106. 6 79. 5 18. 8 23. 7% 0. 5x 2. 3x NA
G eoS entric O yj 3/31/2009 G E O 1V HL S E E UR F inland 0. 04 50. 1 5. 9 (15. 3) NM 7. 8x - 108
G iant Interactive G roup, Inc. 3/31/2009 GA NY S E US D C hina 8 1,705. 2 219.0 NM NM - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 5. 42 295. 5 183.6 NM NM 1. 2x - 751
G ravity C o., Ltd 3/31/2009 GR VY Na s daqG M US D S outh K orea 1. 45 40. 3 43. 7 12. 0 27. 5% - - 469
G ree, Inc. 6/30/2008 T S E : 3632 TS E JPY J a pan 6,450 1,557. 1 31. 8 11. 4 36. 0% 46.3x - NA
G ungHo O nline E ntertainment, Inc. 3/31/2009 3765 OS E JPY J a pan 185,500 229. 7 111.4 20. 0 18. 0% 1. 8x 10. 0x NA
HanbitS oft, Inc. 3/31/2009 A047080 K OS E KR W S outh K orea 4,325 72. 4 52. 7 (14. 1) -26. 8% 1. 1x - NA
IAC /InterActiveC orp. 3/31/2009 IAC I Na s daqG S US D United S ta tes 16. 11 2,431. 3 1, 406. 4 42. 6 3.0% 0. 4x 12. 8x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS C . A OT C B B US D C anada 0. 15 10. 5 0. 0 (0.8) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 10 4.4 1. 5 (4.7) NM 2. 4x - NA
J umbuck E nterta inment P ty Ltd. 12/31/2008 AS X :J MB AS X AUD Aus tralia 0. 38 14. 6 13. 9 5.2 37. 2% 0. 7x 1. 9x 72
J umpT V Inc. 3/31/2009 T S X :J T V TS X C AD C anada 0. 70 68. 8 18. 1 (12. 0) -66. 6% 3. 2x - 237
K AB Dis tribution Inc. 3/31/2009 T S X :K AB TS X C AD C anada 0. 63 76. 1 71. 1 8.5 11. 9% 1. 1x 9. 6x NA
K ings oft C o. Ltd. 3/31/2009 3888 S E HK HK D C hina 5. 47 766. 3 129.1 52. 0 40. 3% 5. 5x 13. 7x 2, 271
Lingo Media C orporation 3/31/2009 T S X V :LM T S XV C AD C anada 1. 19 12. 8 0. 9 (1.5) NM 13.2x - NA
LiveW orld Inc. 3/31/2009 LVW D OT C P K US D United S ta tes 0 1.7 11. 4 (0.0) -0.4% 0. 1x - NA
LookS mart, Ltd. 3/31/2009 L OO K Na s daqG M US D United S ta tes 1. 14 19. 5 60. 7 (3.8) -6.3% - - 90
Magnitude Information S ys tems Inc. 3/31/2009 MAG Y OT C B B US D United S ta tes 0. 01 4.1 0. 1 (3.1) NM - - 14
Mixi, Inc. 3/31/2009 2121 TS E JPY J a pan 605,000 1,005. 4 130.3 46. 2 35. 4% 6. 8x 19. 1x NA
Modern T imes G roup Mtg AB 3/31/2009 MT G B OM SEK S weden 221. 00 1,841. 4 1, 702. 0 260.7 15. 3% 1. 4x 9. 2x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tralia 0. 07 4.7 1. 1 (2.3) NM 3. 2x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 70 92. 2 40. 0 0.8 1.9% 2. 6x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 31,000 249. 1 189.0 50. 8 26. 8% 1. 3x 4. 7x NA
NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HK D C hina 5. 69 388. 0 87. 0 34. 4 39. 5% 2. 9x 7. 4x 2, 426
Neteas e. com Inc. 3/31/2009 NT E S Na s daqG S US D C hina 35. 01 4,496. 3 470.6 305.9 65. 0% - - 3, 109
NeXplore C orporation 9/30/2007 NX P C OT C P K US D United S ta tes 0. 58 32. 4 NM (4.9) NM - - 19
Ngi G roup Inc. 3/31/2009 2497 TS E JPY J a pan 30,550 40. 9 95. 5 11. 5 12. 0% - - NA
Northgate T echnologies L imited 3/31/2009 590057 BSE INR India 29. 05 20. 7 114.3 (26. 8) -23. 5% 0. 2x - NA
O pen T ext C orp. 3/31/2009 OT E X Na s daqG S US D C anada 36. 00 1,894. 4 782.6 199.2 25. 5% 2. 5x 9. 8x 3, 400
O penwave S ys tems Inc. 3/31/2009 OP W V Na s daqG S US D United S ta tes 2. 29 190. 8 197.2 (2.1) -1.0% 0. 4x - 630
P erfect W orld C o. , Ltd. 3/31/2009 PWRD Na s daqG S US D C hina 28. 78 1,399. 8 228.2 124.6 54. 6% 0. 2x 0. 4x 2, 096
P NI Digital Media Inc. 3/31/2009 T S X V :P N T S XV C AD C anada 1. 45 42. 8 18. 7 0.4 2.3% 2. 2x - NA
Q uepa s a C orp. 3/31/2009 QP S A OT C B B US D United S ta tes 1. 00 12. 7 0. 1 (10. 8) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 0. 75 104. 0 144.6 18. 9 13. 1% 0. 0x 0. 2x NA
S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA Na s daqG S US D C hina 51. 81 3,459. 3 570.2 260.9 45. 8% 0. 0x 0. 1x 3, 124
S hutterfly, Inc. 3/31/2009 S FLY Na s daqG S US D United S ta tes 12. 00 302. 1 215.2 28. 3 13. 2% 1. 1x 8. 3x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9,050 289. 6 175.7 11. 4 6.5% 1. 6x 25. 3x NA
S NAP Interactive, Inc. 3/31/2009 S TVI OT C B B US D United S ta tes 0. 45 4.9 3. 3 0.9 28. 0% 1. 0x 3. 7x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0. 32 0.0 0. 1 (0.1) -60. 5% 0. 0x - NA
S ocialwis e, Inc. 3/31/2009 S C LW OT C B B US D United S ta tes 0. 80 34. 7 0. 0 (4.8) NM - - NA
S ohu. com Inc. 3/31/2009 S O HU Na s daqG S US D C hina 58. 92 2,254. 5 460.0 200.5 43. 6% 4. 1x 9. 4x 3, 197
S park Networks , Inc. 3/31/2009 L OV AME X US D United S ta tes 2. 40 49. 4 54. 3 11. 8 21. 7% 0. 9x 4. 2x 183
S pectrumDNA, Inc. 3/31/2009 S P XA OT C B B US D United S ta tes 0. 15 7.3 0. 1 (2.6) NM - - 7
T encent Holdings Ltd. 3/31/2009 700 S E HK HK D C hina 87. 05 20, 272.6 1, 203. 7 576.8 47. 9% 18.3x 38. 2x 6, 194
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 02 0.5 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 65 232. 0 249.9 84. 2 33. 7% - - NA
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2 61. 1 67. 0 1.9 2.9% - - 310
T ota l S port O nline AS 3/31/2006 T OS O O T C NO NO K Norway 0. 03 0.1 2. 1 (1.0) -50. 6% 4. 6x - 16
T ree.C om, Inc. 3/31/2009 TR E E Na s daqG M US D United S ta tes 9. 59 103. 5 215.6 (13. 3) -6.2% 0. 4x - 700
Unis erve C ommunica tions C orp. 2/28/2009 T S X V :US S T S XV C AD C anada 0. 07 1.5 22. 5 0.1 0.2% 0. 2x - NA
United O nline Inc. 3/31/2009 UNT D Na s daqG S US D United S ta tes 7. 00 585. 1 811.2 177.3 21. 9% 1. 1x 4. 9x 1, 469
UOMO Media, Inc 1/31/2009 UO MO OT C B B US D C anada 0 9.0 0. 6 (0.5) -78. 2% 14.7x - NA
V alueC lick Inc. 3/31/2009 V C LK Na s daqG S US D United S ta tes 10 901. 9 591.7 105.5 17. 8% 1. 3x 7. 6x 1, 189
V OIS , Inc. 3/31/2009 V O IS OT C B B US D United S ta tes 0 8.3 0. 0 (1.1) NM - - 4
W ebzen Inc. 3/31/2009 W ZE N Na s daqG M US D S outh K orea 3. 28 38. 9 22. 0 (0.5) -2.4% - - NA
W izzard S oftwa re C orporation 3/31/2009 W ZE AME X US D United S ta tes 0. 51 24. 4 5. 6 (5.3) -94. 5% 4. 6x - 110
W orlds . com Inc. 3/31/2009 W DDD OT C B B US D United S ta tes 0. 15 7.9 0. 0 (0.8) NM - - 1
W oozyF ly, Inc. 3/31/2009 W ZY F OT C B B US D United S ta tes 0. 15 2.6 NM NM NM - - NA
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA
XING AG 3/31/2009 O 1B C XT R A E UR G ermany 30. 13 221. 6 52. 8 16. 5 31. 2% 3. 2x 10. 3x 239
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7,900 94. 7 52. 3 11. 3 21. 6% 2. 0x 9. 3x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 6,200 25. 3 10. 9 1.1 10. 5% - - NA
ZipLocal Inc. 3/31/2009 T S X V :ZIP T S XV C AD C anada 0. 01 0.3 2. 6 (2.0) -78. 3% 48.3x 38. 2x NA
High 20, 272.6 1,702. 0 576. 8 65. 0% 48.3x 38. 2x 6, 194
Low 0.0 0. 0 -26.8 -98. 9% 0. 0x 0. 1x 1
Average 583.6 153.8 33.6 8.1% 5.3x 9.2x 870
Median 49. 7 53.6 0. 8 13. 2% 1. 6x 9. 2x 376
Figure 1. Web 2.0 Universe Summary
Source. Capital IQ

3. Page 3
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 )
Online Media companies lead financing: Two online media companies, Pandora (Internet Radio) and QuickPlay (Mobile
Video), have secured the largest financing transactions thus far in July ($35 million and $12 million, respectively). Total
capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed
with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook
transaction) and June were $6.4 million and $4.7 million, respectively.
Financing Activity Last Three Months
200.0 9.0
8.3
180.0 8.0
160.0
7.0
6.4
140.0
6.0
120.0
5.0
(US$m)
(US$m)
4.7
100.0
4.0
80.0
3.0
60.0
2.0
40.0
1.0
20.0
0.0 0.0
May-09 (excl FB) Jun-09 Jul-09
Total Average
Figure 2. Financings, Last Three Months
Source. Company reports

4. (US$m)
0.0
50.0
100.0
150.0
200.0
250.0
Facebook
People Media
Source. Company reports
AdLink Internet Media
Pandora Media
StumbleUpon
One Net
Sugar Inc.
Tumri
Boku
Cyberplex
QuickPlay Media
Wimba
Figure 3. Capital Market Activity, Last Three Months
Grab Networks
Peer39
OpenX
Imeem
Goojet SAS
EveryZing
AdMeld Inc.
beeTV
I Love Rewards
WonderHill
BlogHer Inc.
Gist
blueKiwi Software SA
Nokeena
Metaversum
financings, see Figures 23 and 24 (at end of note).
Fuhu Inc.
Zoosk
Sense Networks
Azuki Systems
Gather
MojoPages
TimeBridge
OLX
DocuSign
Taomee
Animoto
GameGround
Nexage
StyleCaster
Medialets
RingRevenue
TweetDeck
Crowdcast
YuMe
eRepublik
Newser LLC
ClickFuel
Financing & M/A Summary - Last Three Months
Inigral
AdEx Media
GROU.PS
Resonate Networks
my6sense
Yapta
OneTXT
Cliqset
VoxPop
Mo'Minis
CoTweet
Glubble
Picaboo
LiquidPlanner
AdWhirl
TodaCell
Loop'd Network
MashLogic
People Capital
Jaxtr
Jul-09
Jun-09
May-09
Page 4
its revenue from advertising, indicated that it would be joining the new agreement as well. For additional details on
copyright holders reached agreement with a group of webcasters regarding royalty rates. Pandora, which derives most of
Pandora raises $35 million: Pandora had the largest raise over the last week, securing a $35 million round. Recently,

5. Page 5
Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in
number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised
($240.5 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it
was the Ad Network sector that saw the most transactions (13), raising $117.2 million (Figure 4).
Capital Market Activity by Sector - Last Three Months
300.0
250.0
200.0
(US$m)
150.0
240.5
100.0
117.2
50.0
80.0
35.0 29.0 25.8 23.0 20.4 20.0 19.3 18.3 17.5 17.0 16.5 13.3 13.0 6.8 6.3 4.0
0.0 3.2 1.0 1.0 0.5
Comment/Reputation
Mobile Payment
Communities
Online Dating
Gaming
Mobile
Enterprise
Collaboration
Media
Microblog
Publishing
Online Lending
Music
Blog
Infrastructure
Search
Mobile Ad
Widget
Social Networks
Video
Virtual World
Aggregation
Ad Network
Vertical
# companies
11 13 1 1 1 5 2 3 3 6 3 5 3 3 2 1 1 1 1 1 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months
Source. Company reports

6. Page 6
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 )
Web 2.0 index outpaces NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the
performance of the NASDAQ composite index from mid-2008 until recently. However, the index has recently had a much
stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance
120
100
80
60
40
20
0
7/14/2008
7/28/2008
8/11/2008
8/25/2008
9/8/2008
9/22/2008
10/6/2008
10/20/2008
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
2/9/2009
2/23/2009
3/9/2009
3/23/2009
4/6/2009
4/20/2009
5/4/2009
5/18/2009
6/1/2009
6/15/2009
6/29/2009
7/13/2009
^COMP - Share Pricing Index: Web 2.0 (Market Cap)
Figure 5. Web 2.0 Price Performance
Source. Capital IQ

7. Page 7
A w eak price performance week: The companies in our universe had weak stock price performances over the past week
(for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity
(NasdaqGM:GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in
the week.
1 Week P rice P erformance
G ravity Co., Ltd 33.0%
United Online Inc. 12.0%
V alueClick Inc. 4.7%
Neteas e.com Inc. 3.2%
A ctoz S oft Co., Ltd. 2.8%
Tree.Com, Inc. 2.8%
Cy berplex Inc. 2.6%
Mix i, Inc. 2.5%
Openw ave S y s tems Inc. 1.8%
NetDra gon WebS oft, Inc. 0.9%
S park Netw orks , Inc. 0.8%
Open Tex t Corp. 0.5%
X ING A G 0.3%
S ohu.com Inc. 0.2%
Perf ect World Co., Ltd. 0.1%
PNI Digital Media Inc. 0.0%
My riad G roup A G 0.0%
Lingo Media Corporation 0.0%
CDC Corp. 0.0%
IA C/InterA ctiveCorp. -0.2%
TheS treet.com, Inc. -0.2%
Modern Times Group Mtg A B -0.5%
Tencent Holdings Ltd. -0.6%
Quepas a Corp. -1.0%
GigaMedia Ltd. -1.1%
DA DA S pA -1.3%
Frogs ter Interactive Pictures A G -2.7%
NEOWIZ G ames Corporation -3.6%
Chines e G amer International -3.6%
S handa Interactive Entertainment -4.1%
G iant Interactive G roup, Inc. -4.3%
Eolith Co. Ltd. -5.0%
Changy ou.com Limited -5.6%
HanbitS oft, Inc. -6.4%
K ings oft Co. Ltd. -6.5%
G amania Digital Entertainment Co., -6.9%
The9 Limited -7.2%
LookS mart, Ltd. -7.3%
Y nk K orea Inc. -7.3%
S hutterfly , Inc. -8.0%
S K Communications Co., Ltd. -8.4%
Webz en Inc. -9.1%
G ameOn Co Ltd. -9.7%
Y edangOnline Corp. -12.1%
G ree, Inc. -12.8%
A Q Interactive, Inc. -20.1%
Ngi G roup Inc. -20.2%
Northgate Technologies Limited -20.7%
G ungHo Online Entertainment, Inc. -26.4%
-30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%
Figure 6. 1-Week Price Performance
Source. Capital IQ

8. Page 8
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany Headline Notes
J umbuck E ntertainment Pty L td. Upda te to J umbuck E ntertainment P ty Ltd.'s E quity As of J uly 6, 2009, J umbuck E ntertainment P ty Ltd. ha s repurchas ed 87,750 s hares for a total cos t of AUD 0. 03 million under the program.
(AS X: J MB ) B uyba ck on J uly 6, 2009
C hina E as tern Airlines C orp. L td. T encent Holdings Ltd. T ea ms Up with C hina E a s tern T enpa y, an online pa yment pla tform run by C hines e internet s ervices provider T encent Holdings L td. has s igned a co-operation a greement
(S E HK : 670); Tenc ent Holdings L td. Airlines C orp. Ltd with C hina E as tern Airlines . Under the agreement, T enpa y a nd C hina E a s tern will co-operate on online payment of a ir ticket booking and
(S E HK : 700) joint a ir ticket platform opera tions . T enpa y will als o provide B 2B dis tribution a nd s ettlement s ervices for travel bus ines s .
C L IC K E R Inc . (OTC B B : C L K Z) F ina ncial Media G roup Inc. will C hange its T icker to E ffective J uly 08, 2009, F inancia l Media G roup Inc. will change its O T C B B s tock ticker s ymbol to C L K Z from F NG P .
C L K Z from F NG P
S pectrumDNA, Inc . (OTC B B : S P XA) S pectrumDNA Inc. Appoints J eff Nola n to its B oard of S pectrumDNA Inc. a nnounced the appointment of J eff Nola n, entrepreneur, venture capita lis t and prolific s ocial media s tra tegis t, to its boa rd
Directors of directors . Mos t recently, Mr. Nola n wa s the V P C orpora te Development a t News G ator T echnologies . During his tenure, Mr. Nolan overs aw
res tructuring of News G ator into enterpris e s oftware a nd media bus ines s units operating independently of each other. He als o worked to
es tablis h brand lea ders hip for the company in the widget and content s yndica tion market s pa ce. Mr. Nolan brings to the S pectrumDNA boa rd
a n extens ive ba ckground in technology and Internet infras tructure a nd a ls o deep ma rketing s kills .
B eyond C ommerc e, Inc. B eyond C ommerce Inc. R eports R evenue R es ults for the B eyond C ommerce Inc. reported revenue res ults for the s econd quarter ended J une 30, 2009. F or the period, the company reported tha t due
(OTC B B : B YOC ) S econd Quarter E nded J une 30, 2009 ; P rovides to the s trong growth of its a dvertis ing and E -commerce divis ions $5. 3 million in revenues , up 8, 826% from the s econd qua rter 2008.
R evenue G uida nce for the T hird, F ourth Q ua rter and
S econd Half of F is ca l 2009 T he compa ny expects s trong revenue growth throughout the ba lance of the fis ca l year.
T he compa ny project third and fourth qua rter revenues to exceed $27 million as they were coming into their s tronges t s elling s eas on.
J umbuck E ntertainment Pty L td. Upda te to J umbuck E ntertainment P ty Ltd.'s E quity As of J uly 7, 2009, J umbuck E ntertainment P ty Ltd. ha s repurchas ed 95,250 s hares for a total cos t of AUD 0. 03 million under the program.
(AS X: J MB ) B uyba ck on J uly 7, 2009
OAO R B C Information S ys tems OAO R B C Information S ys tems Announces E xecutive O AO R B C Informa tion S ys tems a nnounced tha t on J une 30, 2009, the B oard of Directors of the compa ny appointed R B C co-founder
(R TS : R B C I) Appointments G erman K a plun, a s G eneral Director, effective J uly 1, 2009. O wing to his appointment to the pos ition of R B C G eneral Director, the boa rd
a ls o cons idered the ques tion of reelecting the cha irma n of the B oa rd of Directors . T he G eneral Director of the R B C T V bus ines s cha nnel-
Artyom Inutin, who ha s been in cha rge of R B C 's media bus ines s for more than 10 yea rs , wa s elected a s a new chairman of the B oard of
Directors of the company.
DigitalFX International, Inc . Digita lF X International Inc. Appoints Allen La ngford as O n J uly 1, 2009, Digita lF X Interna tional Inc. appointed Allen La ngford, age 49, a s its new C hief O pera ting O fficer. Mr. L angford has over
(OTC B B : DG FX) C hief Operating Officer twenty years of ma na gement experience in the technology indus try, including three yea rs as divis iona l E xecutive V ice P res ident of P P G
Indus tries Inc. and various executive level roles in other compa nies . S ince O ctober 15, 2008, Mr. La ngford ha s s erved the compa ny as a n
independent contra ctor. P rior to his a ppointment as the compa ny's C hief Opera ting Officer Mr. L angford wa s als o a direct s elling 'affilia te' of
V Mdirect, L . L. C .
NetDragon WebS oft, Inc. (S E HK : 777) NetDragon La unches B eta T es t of Heroes of Might and NetDragon W ebS oft Inc. a nnounced that the beta tes t vers ion of the 2. 5D MMOR P G Heroes of Might and Ma gic Online: G old E dition will be
Ma gic O nline: G old E dition officia lly la unched at 15: 00 (C hina S tanda rd T ime) on J uly 8th. Heroes of Might a nd Magic Online: G old E dition is a product of s ignificance
for NetDragon, a s it repres ents the culmination of years of itera tive des ign proces s es , a nd bala nces the des ires of gamers with the cla s s ic
s trategic game-play elements of Ubis ofts legendary Heroes of Might & Magic fra nchis e.
Gravity C o., L td (Nas daqGM: G R VY) G ravity C o. Ltd. R eports Unaudited C ons olidated G ra vity C o. L td. reported una udited cons olida ted earnings res ults for the firs t quarter ended Ma rch 31, 2009. T he company reported
E a rnings R es ults for the F irs t Q ua rter E nded Ma rch 31, revenues for the firs t qua rter ended Ma rch 31, 2009 wa s K R W 16, 607 million ($12, 991,000), repres enting a 9. 27% increa s e from K R W
2009 15, 198 million ($11,889,000) for the fourth quarter ended December 31, 2008 a nd a 32.55% increas e from K R W 12, 529 million ($9, 801, 000)
for the firs t quarter ended March 31, 2008. Income before income tax expens es and others was K R W 6, 997 million ($5, 474, 000) for the firs t
qua rter of 2009, which repres ents a 76.03% increas e compa red with K R W 3,975 million ($3, 110,000) a nd a 2, 616. 91% increa s e yea r on
year compared with a los s of K R W 278 million ($217,000). Net income wa s K R W 5, 253 million ($4, 109, 000) for the firs t qua rter of 2009
compared with a net income of K R W 1,654 million ($1, 294, 000) for the fourth quarter of 2008 and a net los s of K R W 4,513 million
($3,531, 000) for the firs t qua rter of 2008. Operating income wa s K R W 5, 513 million agains t los s of K R W 1,686 million for the s a me period a
year a go. Income before minority interes t a nd equity in los s of rela ted joint venture wa s K R W 5, 592 million a gains t los s of K R W 1,127 million for the s
Open Text C orp. (Nas daqGS : OTE X) Open T ext C orp. Announces Availa bility of Open T ext O pen T ext C orp. announced the immedia te a vaila bility of Open T ext W eb S olutions 10, the la tes t relea s e of O pen T ext's W eb C ontent
W eb S olutions 10 Management (W C M) s oftware. T he new releas e a llows orga niza tions to intelligently ma na ge a nd deliver a broad s et of corporate informa tion
to us ers over the W eb, and fea tures extens ive us a bility upgra des , a new technology founda tion, and deeper and more comprehens ive
integration with the Open T ext E C M S uite a nd the S AP NetW ea ver(R ) P orta l component. T he role of W C M has s ignificantly expa nded from a
place to s tore a nd publis h externa l-fa cing content to a vital tool in helping to s upport orga niza tiona l bus ines s goals in s uch a reas as s ales
a nd cus tomer s upport. T his means tha t W C M mus t deliver a highly pers onal cus tomer experience a nd be a ble to tap into content hous ed in
many different enterpris e s ys tems . And a s digital as s ets ha ve become les s expens ive to crea te, companies need better wa ys to ma na ge rich
media s uch as audio a nd video.

9. Page 9
K ey Developments
C ompany Headline Notes
K ings oft C o. L td. (S E HK : 3888) An unknown s hareholder entered into a term s heet to s ell An unknown s ha reholder entered into a term s heet to s ell 7. 81% s take in K ings oft C o. L td. (S E HK : 3888) on J uly 9, 2009. HS B C is acting a s
7.81% s ta ke in K ings oft C o. L td. (S E HK : 3888). book runner for the s ale.
VOIS , Inc. (OTC B B : VOIS ) V OIS , Inc., 100 : 1, S tock S plit or S ignificant S tock V OIS , Inc., 100 : 1, S tock S plit or S ignificant S tock Dividend, J ul-09-2009
Dividend, J ul-09-2009
Openwave S ys tems Inc. O penwave S ys tems Inc. Appoints J ohn G iere a s S enior Openwave S ys tems Inc. a nnounced the a ppointment of J ohn G iere as s enior vice pres ident, products and marketing, effective J uly 8, 2009.
(Nas daqG S : OPW V) V ice P res ident of P roducts and Marketing G iere brings more than 20 years of mana gement, marketing a nd bus ines s development experience a t compa nies in the telecommunica tions
indus try, including Alcatel Lucent and E rics s on. G iere will report to the company's C E O , K en Denman. P rior to O penwave, J ohn s erved as
chief marketing officer a t Alcatel Lucent. He als o held a number of s enior marketing roles at E rics s on, including vice pres ident, new bus ines s
development; vice pres ident, global branding a nd ma rketing; a nd executive vice pres ident, bus ines s development a nd s ales s upport. J ohn
currently s erves on the T elecommunications Indus try As s ociation (T IA) E xecutive B oard. He holds an MB A from the Univers ity of Maryla nd
a nd a B S degree from G eorgetown Univers ity.
B eyond C ommerc e, Inc. B eyond C ommerce Announces LocalAdL ink's E xpans ion B eyond C ommerce Inc. a nnounced the P re-L aunch of LocalAdL ink into the C a nadian ma rket. LocalAdL ink ha s its firs t meeting s cheduled in
(OTC B B : B YOC ) Into C a na da C anada on J uly 25th in T oronto. T o regis ter for this introductory meeting. LocalAdL ink is an online advertis ing s ervice tha t enables loca l
bus ines s es to reach local cus tomers . T he cus tomer facing W eb s ite L ocalAdLink. com is a local s earch directory and acts as the centra l hub
for the Loca lAdL ink technology. W hen a cus tomer vis its LocalAdL ink. com, the proprieta ry geo-targeting technology identifies their location
a nd s erves up loca l bus ines s es in their zip code. O nce here, a cus tomer can perform additional s earches for loca l bus ines s es and s ervices
a cros s a complete s election of categories and get the informa tion they require.
P NI Digital Media Inc. (TS XV: P N); R etail P NI Digital Media Inc. Adds New Dis tributors and New P NI Digital Media Inc. announced s evera l new initiatives related to its P NI C onnected K ios k(T M). P NI a nd R eta il Ima ging Ma na gement
Imaging Management G roup L lc R etailers with P NI C onnected K ios k G roup Llc are working together to dis tribute the P NI C onnected K ios k to ma jor retail cus tomers acros s the US . R etail Ima ging has a lrea dy
enabled P NI to s ell the traditional touch-s creen termina l-ba s ed vers ion of the P NI C onnected K ios k into F red Meyer and K ing S oopers ,
a nnounced on April 30th, 2009. P NI a nd R eta il Ima ging have now teamed up to pla ce the web vers ion of the P NI C onnected K ios k with
As s ocia ted F oods S tores ' online P ixureT his (T M) photo s olution. P NI has als o teamed up with P hoto G ift W orld to launch the online vers ion
of the P NI C onnected K ios k to a new range of P G W cus tomers including s ma ll reta ilers , corporations , non-profit orga nizations a nd s chools .
P G W , the producer of photo gifts , photo books a nd calendars for C a na dian retailers , is now a ctively purs uing pa rtners hips in the US . T he
P NI C onnected K ios k enables P G W to offer their thous ands of photo gift products in a n efficient manner to any number of new cus tomers
Open Text C orp. (Nas daqG S : OTE X) C anopius S elects Open T ext E C M S uite Open T ext C orp. announced that C anopius has s elected the O pen T ext E C M S uite to improve proces s es , reduce filing cos ts a nd, more
importa ntly, s upport the implementation of electronic tra ding. R ealizing the ever-increas ing ma rket dema nd for electronic trading, C anopius
unders ta nds the need for a document mana gement and workflow s ys tem that would enable the orga nization to exchange information
electronica lly with brokers and third parties around the world. F ollowing a rigorous evaluation proces s , C a nopius chos e the O pen T ext E C M
S uite, pa rticula rly for its bus ines s proces s management a nd document management capa bilities . One of the key factors in the decis ion was
that Open T ext could offer an integra ted document ma nagement and bus ines s proces s ma na gement s olution, reducing s ys tem integra tion
concerns .
Figure 7. Key Developments
Source. Capital IQ

10. Page 10
VALUATION
Online Gaming companies lead market-cap charts: Thirteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-eight of the 92 companies have market caps under US$100 million, with 26 under
US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over
US$20 billion.
Market C ap (US D m)
Tencent Holdings Ltd.
Neteas e. com Inc.
S handa Interactive Entertainment 3459.3
IA C/InterA ctiveCorp. 2431.3
S ohu. com Inc. 2254.5
Cha ngy ou.com Limited 2068. 6
Open Tex t Corp. 1894. 4
Modern Times G roup Mtg A B 1841.4
G iant Interactive G roup, Inc. 1705.2
G ree, Inc. 1557.1
Perf ect World Co., Ltd. 1399.8
Chines e G amer Internationa l 1089.6
Mix i, Inc. 1005.4
V a lueClick Inc. 901.9
K ings oft Co. Ltd. 766.3
United Online Inc. 585.1
NetDra gon WebS of t, Inc. 388.0
S hutterf ly , Inc. 302.1
G igaMedia Ltd. 295.5
S K Communications Co., Ltd. 289. 6
G ama nia Digital Entertainment Co., 252.6
NEOWIZ G ames Corporation 249.1
The9 Limited 232.0
G ungHo Online Entertainment, Inc. 229.7
XING A G 221.6
Openw ave S y s tems Inc. 190.8
A ctoz S oft Co., Ltd. 169.8
CDC Corp. 150.7
DA DA S pA 139.1
G ameOn Co Ltd. 106.6
OA O R B C Inf ormation S y s tems 104.0
Tree.Com, Inc. 103.5
Y edangOnline Corp. 94.7
My riad G roup A G 92.2
Cy berplex Inc. 88.9
K A B Dis tribution Inc. 76. 1
HanbitS of t, Inc. 72.4
JumpTV Inc. 68.8
TheS treet.c om, Inc. 61.1
DigitalTow n, Inc. 54.2
G eoS entric Oy j 50.1
S park Netw orks , Inc. 49.4
PNI Digital Media Inc. 42.8
Eolith Co. Ltd. 41.8
Ngi G roup Inc. 40.9
G ravity Co. , Ltd 40.3
Webz en Inc. 38.9
Frogs ter Interac tiv e Pictures A G 37.7
S ocialw is e, Inc. 34.7
A Q Interac tiv e, Inc. 32.4
NeXplore Corporation 32.4
Fluid Mus ic Canada, Inc. 29.5
Y nk K orea Inc. 25.3
Wiz z ard S of tw are Corporation 24.4
Dolphin Digita l Media, Inc. 23.3
DXN Holdings B hd 22.4
Northgate Technologies Limited 20.7
B roadWebA s ia Inc. 19.5
LookS mart, Ltd. 19.5
B ey ond Commerc e, Inc. 18.0
A cceleriz e New Media, Inc. 15.2
J umbuck Entertainment Pty Ltd. 14.6
Lingo Media Corporation 12.8
Quepas a Corp. 12.7
IA S Energy , Inc. 10.5
UOMO Media, Inc 9.0
V OIS , Inc. 8.3
Worlds . com Inc. 7.9
S pectrumDNA , Inc. 7.3
S NA P Interac tiv e, Inc. 4.9
MOK O.mobi Limited 4.7
Ex tens ions , Inc. 4.4
is eemedia Inc. 4.4
B right Things plc 4.1
Magnitude Inf ormation S y s tems 4.1
CornerWorld Corporation 3.9
DigitalPos t Interac tiv e, Inc. 3.0
Wooz y Fly , Inc. 2.6
B etaw ave Corporation 2.6
B igs tring Corp. 2.1
Wy nds torm Corporation 1.8
LiveWorld Inc. 1.7
Unis erv e Communications Corp. 1.5
CLICK ER Inc. 1.3
A s s ociated Media Holdings Inc. 0.9
The Pa rent Company 0.5
ZipL ocal Inc. 0.3
China G atew ay Corporation 0.3
Total S port Online A S 0.1
S ocial Media V enures , Inc. 0.0
S NM G lobal Holdings 0.0
Dibz Interna tional, Inc. 0.0
0 500 1,000 1,500 2, 000 2,500 3,000 3,500 4, 000
Figure 8. Market Cap Ranking
Source. Capital IQ