SOFTWARE & SERVICES 7 JULY 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666

ADVERTISING MANAG EMENT COMPANY HI-MEDIA ACQUIRES ADLINK INTERNET MEDIA FO R $41
MILLION
IS T H I S T H E BE GI N NI NG OF BA C KW A RD I NT EG R A T IO N?
W e have often discussed in our various publications about the crossover of old media (TV, Radio, and Newspapers)
into new media platforms such as blogs/micro-blogs, online video, online radio, mobile media, etc. Alongside this
crossover, the role of the traditional advertising/media buying companies is changing rapidly. W ith the ability to target
advertisements (on the new platforms) to very specific demographics and user base, the new media platform has
helped create the analytics sector that provides data to media buyers or in themselves distribute advertisements
through their affiliate networks using the data (or intelligence) they have amassed.
W e believe that the acquisition of AdLink (an internet marketing solutions company) by a large online publisher such
as Hi-Media validates the potential of a backward integration in the online media and advertising sector. W ith the
sector being in the very early stages, these business models or operating models are far away from maturity.
Nevertheless, we expect to see many more such partnerships or integrations in the future.
A quiet week on the capital raise front: Last week being marked by holidays in both Canada and United States, it
was extremely quiet on the capital raise front. Total capital raised for the first few days of July is $4 million on a
single transaction. Hi-Media’s acquisition of AdLink Internet Media (July 6, 2009) for $41 million was the other
transaction of note. June closed with $180 million on 36 transactions. It was led by Sugar Inc. raising $16.0 million,
closely followed by Tumri ($15 million), Boku ($13 million), W imba ($12 million), and Grab Networks ($12 million).
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 7.0

6.4
180.0
6.0

160.0

5.0
140.0
4.7

120.0
4.0 4.0
(US$m)

(US$m)

100.0

3.0
80.0

60.0
2.0

40.0

1.0
20.0

0.0 0.0
May-09 (excl FB) Jun-09 Jul-09

Total Average

Price performance for the week was mixed: The companies in our universe had a mixed stock price performance
over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on
the week. VOIS Inc. (VOIS:OTCBB) led the group with a 30.9% return, while Tencent Holdings Ltd. (700-SEHK) had
the worst return, dropping 7.4% 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
 Page 2

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 ~$53 billion (Figure 1). The average market cap for the group is ~$588 million (but a median of only $50.0 million), with
average trailing revenue of $152.2 million (median $54.1 million). The companies are also generally profitable, with a
median EBITDA margin of 13.2%. On a valuation basis, the overall average is 4.6x trailing revenue (median 1.4x) and
10.1x trailing EBITDA (median 9.2x). Fourteen of the companies have more than 500 employees.
C omparable C ompany A nalys is > W eb 2.0
Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITD A T E V/LT M TE V /L TM
C om pany Nam e L TM as o f T icker E xchange Currenc y HQ Price C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E BITDA E mplo yees
Acce le riz e N ew Me dia, Inc. 3 /31 /200 9 AC LZ OT C B B USD U nited S ta tes 0 .50 1 3.8 4.1 (4 .4) NM 4.6x - 11
Actoz S of t C o., L td. 3 /31 /200 9 A0 527 90 K OS E KR W S o uth K orea 25 100 16 9.2 91. 0 1 9.8 21 .7% 1.5x 7. 1x NA
AQ Inte ractive , Inc. 3 /31 /200 9 38 38 TSE J PY J apan 69 100 3 9.6 65. 1 4 .1 6 .3% 0.2x 2. 5x NA
As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K USD U nited S ta tes 0 .02 0 .9 0.1 (2 .3) NM 1 9.2 x - 3
B igstring Co rp. 3 /31 /200 9 BS GC OT C B B USD U nited S ta tes 0 .03 1 .8 0.1 (2 .0) NM 4 3.2 x - 4
B e tawave Corpora tion 3 /31 /200 9 B W AV OT C B B USD U nited S ta tes 0 .10 2 .9 8.4 (1 2.6) NM - - 53
B e yond Commerce, Inc. 3 /31 /200 9 B Y OC OT C B B USD U nited S ta tes 0 .44 1 9.8 7.1 (9 .5) NM 3.5x - 69
B right T hings plc 9 /30 /200 8 AIM:B G T AIM G BP U nited K ingdom 0 .02 4 .8 0.3 (1 .8) NM 1 7.6 x - 9
B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K USD U nited S ta tes 0 .23 1 9.5 0.0 (4 .6) NM - - 46
C D C C orp. 3 /31 /200 9 C HIN .A N as da qG S USD H ong K ong 1 .43 15 1.7 389 .9 3 0.8 7 .9% 0.4x 5. 4x NA
C ha ngyou. com Limite d 3 /31 /200 9 C Y OU N as da qG S USD C hina 38 .83 2,1 35.7 222 .5 13 5.1 60 .7% 8.8x 14 .4x 6 28
C hina G ate wa y C orpo ra tion 9 /30 /200 8 CGWY OT C P K USD U nited S ta tes 0 .02 0 .3 6.7 (6 .6) -9 8.9% 0.0x - 37
C hine s e G amer In ternation al 3 /31 /200 9 G T S M:308 3 GT SM TWD T aiwan 446 .00 1,1 37.4 56. 0 3 1.4 56 .0% 1 9.1 x 34 .2x NA
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B USD U nited S ta tes 0 .06 3 .9 1.3 NM NM 4.1x - NA
C yberplex Inc. 3 /31 /200 9 T S X:C X TSX C AD C ana da 1 .57 8 7.5 70. 1 7 .2 10 .3% 1.2x 11 .5x NA
DADA S pA 3 /31 /200 9 C M:D A CM E UR Ita ly 6 .23 14 0.7 234 .0 3 4.2 14 .6% 0.8x 5. 6x 5 78
DXN Holdings B hd 2 /28 /200 9 DXN KL SE MY R Ma la ys ia 0 .37 2 4.1 78. 0 1 0.7 13 .7% 0.5x 3. 7x NA
Dibz Inte rnation al, Inc. NA DIB Z OT C P K USD U nited S ta tes 0 .00 0 .0 NA NM NM - - NA
DigitalP o st Inte ra ctive , Inc. 3 /31 /200 9 DG LP OT C B B USD U nited S ta tes 0 .04 3 .2 0.7 (2 .6) NM 6.6x - 7
DigitalT own, In c. 2 /28 /200 9 DG T W OT C B B USD U nited S ta tes 2 .05 5 5.5 NM (3 .0) NM - - 3
Dolph in D igital Me dia, In c. 3 /31 /200 9 DP DM OT C B B USD U nited S ta tes 0 .40 2 0.7 0.8 (3 .7) NM 2 8.0 x - NA
E o lith C o. L td. 1 2/31 /200 8 A0 410 60 K OS E KR W S o uth K orea 795 .00 4 5.4 14. 5 (3 .4) -2 3.6% 3.3x - NA
E xte ns ions , Inc. 3 /31 /200 9 E XT I OT C P K USD U nited S ta tes 0 .20 8 .9 NM NM NM - - 2
F inan cia l Media G roup, Inc. 2 /28 /200 9 F NG P OT C B B USD U nited S ta tes 0 .00 0 .2 7.2 2 .4 34 .1% - - 22
F luid Mus ic Ca nada, Inc. 3 /31 /200 9 T S X:F MN TSX C AD U nited S ta tes 0 .65 2 9.4 5.0 (6 .9) NM 4.1x - NA
F ro gs te r Interactive P ictu re s AG 1 2/31 /200 8 FRG XT R A E UR G ermany 11 .82 3 8.7 3.2 (6 .1) NM 1 1.5 x - NA
G a ma nia Digital E ntertainmen t C o., L td. 3 /31 /200 9 61 80 GT SM TWD T aiwan 59 .30 27 3.1 125 .6 2 0.9 16 .6% 2.0x 12 .0x NA
G a me On C o L td. 3 /31 /200 9 38 12 TSE J PY J apan 112 900 11 4.9 77. 5 1 8.3 23 .7% 0.7x 2. 9x NA
G e oS e ntric O yj 3 /31 /200 9 G E O1 V H LS E E UR F inland 0 .04 5 0.0 5.9 (1 5.2) NM 7.8x - 1 08
G iant Intera ctive G roup, Inc. 3 /31 /200 9 GA NY S E USD C hina 7 .85 1,7 72.9 218 .9 NM NM - - 1, 570
G iga Media Ltd. 3 /31 /200 9 G IG M N as da qG S USD T aiwan 5 .45 29 7.1 183 .6 NM NM 1.2x - 7 51
G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M USD S o uth K orea 1 .04 2 8.9 38. 5 7 .4 19 .2% - - 6 36
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE J PY J apan 7 400 1,7 40.4 30. 9 1 1.1 36 .0% - - NA
G u ngH o O nline E n tertainment, In c. 3 /31 /200 9 37 65 OS E J PY J apan 252 000 30 4.0 108 .5 1 9.5 18 .0% 2.5x 14 .1x NA
H anbitS of t, Inc. 3 /31 /200 9 A0 470 80 K OS E KR W S o uth K orea 4 620 7 9.7 54. 4 (1 4.6) -2 6.8% 1.2x - NA
IAC /In terActiveC orp. 3 /31 /200 9 IAC I N as da qG S USD U nited S ta tes 16 .14 2,4 35.8 1 ,40 6.4 4 2.6 3 .0% 0.4x 12 .9x 3, 200
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B USD C ana da 0 .19 1 3.3 0.0 (0 .8) NM - - NA
is ee media Inc. 3 /31 /200 9 IE E T S XV C AD C ana da 0 .08 3 .5 1.5 (4 .7) NM 1.8x - NA
J umbu ck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Au s tra lia 0 .38 1 4.9 14. 2 5 .3 37 .2% 0.7x 1. 9x 72
J umpT V Inc. 3 /31 /200 9 T S X:J T V TSX C AD C ana da 0 .75 7 3.5 18. 1 (1 1.8) -6 5.2% 3.5x - 2 37
K A B D is tribu tion In c. 3 /31 /200 9 T S X:K AB TSX C AD C ana da 0 .65 7 8.3 70. 9 8 .4 11 .9% 1.2x 9. 9x NA
K in gs oft Co . Ltd. 3 /31 /200 9 38 88 S E HK HKD C hina 5 .85 81 8.9 129 .1 5 2.0 40 .3% 6.0x 14 .8x 2, 271
Lin go Media Co rporation 3 /31 /200 9 T S XV : LM T S XV C AD C ana da 1 .19 1 3.2 0.9 (1 .5) NM 1 3.7 x - NA
Live World Inc. 3 /31 /200 9 LV WD OT C P K USD U nited S ta tes 0 .04 1 .2 11. 4 (0 .0) -0 .4% 0.0x - NA
Lo okS mart, Ltd. 3 /31 /200 9 LOOK N as da qG M USD U nited S ta tes 1 .23 2 1.0 60. 7 (3 .8) -6 .3% - - 90
Magn itude Information S ys tems Inc. 3 /31 /200 9 MA G Y OT C B B USD U nited S ta tes 0 .01 4 .1 0.1 (3 .1) NM - - 14
Mixi, Inc. 3 /31 /200 9 21 21 TSE J PY J apan 590 000 95 5.2 126 .9 4 5.0 35 .4% 6.6x 18 .6x NA
Mode rn Times G roup Mtg AB 3 /31 /200 9 MT G B OM S EK S weden 222 1,8 60.5 1 ,71 2.0 26 2.3 15 .3% 1.4x 9. 2x 2, 969
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Au s tra lia 0 .07 4 .8 1.1 (2 .3) NM 3.2x - NA
Myriad G rou p AG 1 2/31 /200 8 MY R N SWX C HF S witz erla nd 5 9 2.0 40. 0 0 .8 1 .9% 2.6x - 4 05
N E OW IZ G ames C orpo ra tion 1 2/31 /200 8 A0 956 60 K OS E KR W S o uth K orea 32 150 26 6.5 195 .0 5 2.4 26 .8% 1.3x 4. 9x NA
N etDrago n W ebS oft, Inc. 3 /31 /200 9 77 7 S E HK HKD C hina 5 .64 38 4.6 86. 9 3 4.4 39 .5% 2.9x 7. 3x 2, 426
N ete as e.com I nc. 3 /31 /200 9 NT E S N as da qG S USD C hina 33 .30 4,2 76.7 470 .5 30 5.8 65 .0% - - NA
N eXplore Co rpora tion 9 /30 /200 7 N XP C OT C P K USD U nited S ta tes 0 .60 3 3.5 NM (4 .9) NM - - 19
N gi G roup Inc. 3 /31 /200 9 24 97 TSE J PY J apan 38 300 .00 5 0.0 93. 0 1 1.2 12 .0% 0.1x 0. 8x NA
N orthgate Te chno logies L imited 3 /31 /200 9 59 005 7 BS E INR India 36 .65 2 6.3 115 .6 (2 7.1) -2 3.5% 0.2x - NA
Open T e xt Corp. 3 /31 /200 9 OT E X N as da qG S USD C ana da 35 .44 1,8 65.0 782 .6 19 9.2 25 .5% 2.5x 9. 7x 3, 400
Openwave S ys tems Inc. 3 /31 /200 9 OP W V N as da qG S USD U nited S ta tes 2 .23 18 5.8 197 .2 (2 .1) -1 .0% 0.4x - 6 30
P e rfect W orld C o., Ltd. 3 /31 /200 9 PW R D N as da qG S USD C hina 28 .25 1,3 74.0 228 .1 12 4.6 54 .6% 0.2x 0. 3x 2, 096
Qu epa s a C orp. 3 /31 /200 9 QP S A OT C P K USD U nited S ta tes 0 .99 1 2.6 0.1 (1 0.8) NM - - 74
OA O R B C Information S ys tems 1 2/31 /200 7 R BCI R TS USD R us s ia 0 .92 12 8.0 150 .6 1 9.7 13 .1% 0.0x 0. 2x NA
S h anda Interactive E ntertainme nt L td. 3 /31 /200 9 S N DA N as da qG S USD C hina 52 .52 3,5 06.7 570 .0 26 0.9 45 .8% 0.0x 0. 1x NA
S h utte rf ly, In c. 3 /31 /200 9 S F LY N as da qG S USD U nited S ta tes 12 .98 32 6.7 215 .2 2 8.3 13 .2% 1.2x 9. 2x 5 14
S K C ommun ications Co ., Ltd. 1 2/31 /200 8 A0 662 70 K OS E KR W S o uth K orea 9 880 .00 32 6.1 181 .3 1 1.8 6 .5% 1.8x 27 .7x NA
S N AP Inte ra ctive , Inc. 3 /31 /200 9 S T VI OT C B B USD U nited S ta tes 0 .45 4 .9 3.3 0 .9 28 .0% 1.0x 3. 7x 11
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K USD U nited S ta tes 0 .01 0 .0 2.0 (0 .7) -3 4.8% 1.1x - 33
S o cia l Media V e nures , In c. 1 2/31 /200 8 S MVI OT C P K USD U nited S ta tes 0 .25 0 .0 0.1 (0 .1) -6 0.5% 0.0x - NA
S o cia lwis e, Inc. 3 /31 /200 9 S C LW OT C B B USD U nited S ta tes 0 .62 2 6.9 0.0 (4 .8) NM - - NA
S o hu. com Inc. 3 /31 /200 9 S OH U N as da qG S USD C hina 58 .28 2,2 30.0 460 .0 20 0.5 43 .6% 4.0x 9. 3x 3, 197
S park N etworks , Inc. 3 /31 /200 9 LOV AME X USD U nited S ta tes 2 .38 4 8.9 54. 3 1 1.8 21 .7% 0.9x 4. 2x 1 83
S pectrumDN A, Inc. 3 /31 /200 9 S P XA OT C B B USD U nited S ta tes 0 .25 1 2.2 0.1 (2 .6) NM - - 7
T en cent Ho ldin gs L td. 3 /31 /200 9 70 0 S E HK HKD C hina 87 .55 20,3 83. 9 1 ,20 3.4 57 6.6 47 .9% 1 8.4 x 38 .4x 6, 194
T he P arent C ompany 8/2/2008 K IDS .Q OT C P K USD U nited S ta tes 0 .03 0 .7 112 .0 (1 3.5) -1 2.0% 0.2x - 3 47
T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S USD C hina 9 .19 24 6.5 249 .9 8 4.2 33 .7% - - NA
T he S treet.com, Inc. 3 /31 /200 9 TSCM N as da qG M USD U nited S ta tes 2 .01 6 1.5 67. 0 1 .9 2 .9% - - 3 10
T otal S po rt Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 0 .1 2.1 (1 .0) -5 0.6% 4.6x - 16
T ree.C om, Inc. 3 /31 /200 9 TR EE N as da qG M USD U nited S ta tes 9 .21 9 9.4 215 .6 (1 3.3) -6 .2% 0.4x - 7 00
U nis erve C ommunications Co rp. 2 /28 /200 9 T S XV : US S T S XV C AD C ana da 0 .08 1 .7 22. 4 0 .1 0 .2% 0.2x - NA
U nited Online Inc. 3 /31 /200 9 U NT D N as da qG S USD U nited S ta tes 6 .21 51 9.0 811 .2 17 7.3 21 .9% 1.0x 4. 5x 1, 469
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B USD C ana da 0 .14 1 1.6 0.6 (0 .5) -7 8.2% 1 8.8 x - NA
V a lueC lick Inc. 3 /31 /200 9 V C LK N as da qG S USD U nited S ta tes 10 85 1.4 591 .7 10 5.5 17 .8% 1.3x 7. 1x 1, 189
V O IS , In c. 3 /31 /200 9 V OIS OT C B B USD U nited S ta tes 1 1 1.9 0.0 (1 .1) NM - - 4
W ebze n Inc. 3 /31 /200 9 W ZE N N as da qG M USD S o uth K orea 4 4 2.1 22. 6 (0 .4) -1 .9% - - 3 14
W iz za rd S of twa re Co rpora tion 3 /31 /200 9 W ZE AME X USD U nited S ta tes 0 .51 2 4.4 5.6 (5 .3) -9 4.5% 4.6x - 1 10
W orlds .com In c. 3 /31 /200 9 W DD D OT C B B USD U nited S ta tes 0 .08 3 .9 0.0 (0 .8) NM - - 1
W ynds to rm C orporation NA W YND OT C P K USD U nited S ta tes 0 .04 0 .7 NA NM NM - - NA
XIN G AG 3 /31 /200 9 O1B C XT R A E UR G ermany 30 .05 22 0.7 52. 7 1 6.5 31 .2% 3.2x 10 .3x 2 39
Y e dan gOnline Co rp. 1 2/31 /200 7 A0 527 70 K OS E KR W S o uth K orea 8 990 .00 11 1.1 54. 0 1 1.6 21 .6% 2.2x 10 .4x NA
Y n k K orea Inc. 1 2/31 /200 8 A0 237 70 K OS E KR W S o uth K orea 6 690 .00 2 8.1 11. 2 1 .2 10 .5% 2.4x 23 .2x NA
ZipLo cal Inc. 3 /31 /200 9 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .3 2.6 (2 .0) -7 8.3% 0.6x - NA
H igh 20,3 83. 9 1 ,712 .0 57 6.6 65 .0% 4 3.2 x 38 .4x 6,1 94
Lo w 0 .0 0.0 -27.1 -9 8.9% 0.0x 0. 1x 1
A vera ge 587.9 152.2 33.2 6.7% 4 .6x 10. 1x 746
Median 5 0.0 54. 1 0 .9 13 .2% 1.4x 9. 2x 3 12

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 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 )
July starts with an acquisition in the ad network sector: Last week being marked by holidays in both Canada and
United States, it was extremely quiet on the capital raise front. Total capital raised for the first few days of July is $4
million on a single transaction. Hi-Media’s acquisition of AdLink Internet Media (July 6, 2009) for $41 million was the other
transaction of note. June closed with $180 million on 36 transactions. It was led by Sugar Inc. raising $16.0 million, closely
followed by Tumri ($15 million), Boku ($13 million), W imba ($12 million), and Grab Networks ($12 million). 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 7.0

6.4
180.0
6.0

160.0

5.0
140.0
4.7

120.0
4.0 4.0
(US$m)

(US$m)
100.0

3.0
80.0

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

StyleCaster raises $4 million: Partly due to the holidays in North America, last week was very quiet on the capital raise
front, except for vertical community company, StyleCaster, raising $4 million. For additional details, see Figures 23 and 24
(at end of note).
 Page 4

Financing & M/A Summary - Last Three Months

250.0

200.0

150.0

Jul-09
(US$m)

Jun-09
May-09

100.0

50.0

0.0

AdEx Media
Cyberplex

Jaxtr
OneTXT
EveryZing

blueKiwi Software

VoxPop
I Love Rewards

Mo'Minis
StyleCaster

Newser LLC
OpenX

OLX

RingRevenue

YuMe
Grab Networks

Sense Networks
Azuki Systems

MojoPages

Medialets

Resonate Networks

Loop'd Network
MashLogic
Gather

LiquidPlanner
AdLink Internet

One Net
Sugar Inc.

Goojet SAS

AdMeld Inc.
beeTV

BlogHer Inc.
Gist

Fuhu Inc.

Crowdcast

GROU.PS

Cliqset
ClickFuel
Inigral

TodaCell
StumbleUpon

Boku

Peer39

Nokeena

TimeBridge
DocuSign
Taomee
Animoto
GameGround

my6sense
Yapta

Picaboo
Glubble
Facebook

Zoosk

eRepublik
Tumri

Imeem

WonderHill

AdWhirl
Wimba

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports

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). The comment/reputation
sector has the next highest totals, closely followed by Gaming ($25.8 million). Overall, the following sectors continue to
generate the most capital activity over the last few months: Ad Network, Media, Gaming, and Social Networks.
 Page 5

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

29.0 25.8 23.0 18.2 17.5 17.0 16.5 16.4 13.3 13.0 12.0
0.0 8.0 6.8 6.3 4.0 1.0 1.0 0.0
Comment/Reputation

Mobile Payment

Communities
Gaming

Enterprise

Collaboration

Media

Mobile

Publishing
Widget
Blog

Infrastructure

Search

Mobile Ad

SMS/Voice
Social Networks

Video

Virtual World

Aggregation
Ad Network

Vertical
# companies
11 13 1 5 2 5 5 3 3 2 2 1 2 2 1 1 1 1 1 0

Figure 4. Capital Market Activity, by Sector, Last Three Months

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 )
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).
 Page 6

Web 2.0 Index Price Performance

120

110

100

90

80

70

60

50

40
8

9
7/0

1/0

4/0

8/0

1/0

5/0

9/0

3/0

7/0

0/0

4/0

8/0

2/0

5/0

9/0

2/0

6/0

2/0

6/0

0/0

3/0

7/0

1/0

5/0

8/0

2/0

6/0
/0

/2

/0

/1

/0

/1

/2

/1

/2

/1

/2

/0

/2

/0

/1

/0

/1

/0

/1

/3

/1

/2

/1

/2

/0

/2

/0
07

07

08

08

09

09

09

10

10

11

11

12

12

01

01

02

02

03

03

03

04

04

05

05

06

06

07
^COMP - Share Pricing Index: Web 2.0 X (Market Cap Weights) - Index Value

Figure 5. Web 2.0 Price Performance

Source. Capital IQ

A mixed price performance week: The companies in our universe had a mixed stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. VOIS
Inc. (VOIS:OTCBB) led the group with a 30.9% return, while Tencent Holdings Ltd. (700-SEHK) had the worst return,
dropping 7.4% in the week.
 Page 7

1 Week P rice P erformance

V OIS , Inc. 30.9%
Frogs ter Interac tive Pictures A G 19.4%
NetDragon WebS oft, Inc. 12.1%
Webz en Inc. 10.5%
G ree, Inc. 9.6%
Lingo Media Corporation 8.2%
Y edangOnline Corp. 7.0%
Ngi G roup Inc. 6.7%
Chines e G amer International 6.2%
G ameOn Co Ltd. 5.1%
A c toz S oft Co., Ltd. 4.6%
HanbitS oft, Inc. 4.3%
K ings of t Co. Ltd. 2.8%
Modern Times G roup Mtg A B 2.3%
G ama nia Digital Entertainment 2.2%
IA C/InterA ctiveCorp. 1.3%
LookS mart, Ltd. 0.8%
S K Communications Co., Ltd. 0.7%
Eolith Co. Ltd. 0.6%
XING A G 0.6%
Mix i, Inc. 0.2%
NEOWIZ G ames Corporation 0.2%
DigitalTow n, Inc. 0.0%
S park Netw orks , Inc. -0.8%
DA DA S pA -1.1%
Y nk K orea Inc. -1.6%
TheS treet. com, Inc. -2.9%
A Q Interac tive, Inc. -2.9%
Open Tex t Corp. -3.0%
Tree.Com, Inc. -3.4%
United Online Inc. -4.5%
Gravity Co., Ltd -4.6%
CDC Corp. -4.7%
G iant Interactive G roup, Inc. -4.8%
S handa Interactive -5.7%
My riad G roup A G -5.8%
Perf ect World Co., Ltd. -6.0%
Openw ave S y s tems Inc. -6.7%
Neteas e. com Inc. -7.4%
Tencent Holdings Ltd. -7.4%
-10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Figure 6. 1-Week Price Performance

Source. Capital IQ

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
MOK O.mobi Limited (AS X: MKB )
G am ania Digital E ntertainmen t C o. ,
L td. (G TS M: 6180)
S hutterfly, Inc . (Nas daqG S : S FL Y)
U nis erve C ommun ic ation s C orp.
(T S XV: U S S )
X ING AG (XTR A: O1B C)
A c celeriz e New Media, In c.
(OT CB B: A CL Z)
F luid Mus ic C anada, Inc. (T S X:FMN)
T he9 L imited (Nas daqG S :NC TY)
2K S po rts Inc .; T enc en t Holdings Ltd.
(S E HK : 700)
P erform Lo cal, Inc .; Perform L ocal, T ree. Com, I nc. (Nas da qG M: T R E E ) a cquired home
Inc., Home Improvement Profes s io nals improvement profes s iona ls direc tory s ervice of P erform
Directo ry S ervic e; T ree.Com, Inc . L ocal, Inc.
(Nas daqG M:TR E E )
IB 3 Networks , Inc. (OT CB B: IB NW );
iB eam S o lu tions L LC
DigitalT own , Inc . (OT CB B :D G TW )
Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup Mtg A B S ucc ess fully R efina nces its Modern Times G roup Mtg AB announced the s uc ces sful refinancing of its ex isting S E K 3. 0 billion loa n fac ility. T he ex isting loan, whic h wa s
B) E xis ting S E K 3.0 B illion L oa n F a cility
Neteas e. com Inc. (Nas daqG S : NT E S )
K ing s oft Co . Ltd. (S E HK: 3888)
Figure 7. Key Developments
Source. Capital IQ
Page 8
Headline Notes
MO K O . mobi Limited L aunc hes on S econd I ndian C arrier MO K O . mo bi Limited has la unched on I dea C ellular I ndia and ha s bec ome the s econd I ndia n ca rrier launch for MO K O .mobi this month.
MO K O . mo bi is loc alis ed for an Ind ian a udience and will be developed to incl ude c omplimenta ry content that the c arrier is involved in,
including Idea's s pons orship of the M umba i I ndians IP L c rick et tea m. T he Idea vers ion of MO K O . mobi is bas ed on a user-pay s subs cription
a nd premium a ctivity busines s model, where MO K O . mobi is paid a share of all revenues from the mobile opera tor. T he launch includes a
free tria l period and rev enues are ex pected to begin during the s econd quarter of the new fina ncial y ear.
G a mania D igita l E ntertainment C o., L td., 1.00 (TW D ), G a ma nia Di gita l E ntertainment C o. , L td., 1. 00 (TW D ), Ca s h D ividend, J un-29-2009
Ca s h D ivi dend, J un-29-2009
S hutterfly Inc . E xpands its W edding S ta tionery C ollection S hutterfly I nc . a nnounced new a dditions to its wedding stati onery collec tion, including brida l showe r inv ita tions, sa ve-the-da tes, tha nk y ou
cards and addres s labels. R anging from clas sic to modern, photo or non-photo d esigns , S hutterfly's new weddin g s tationery offers s omething
for every bride-to-be. S hutterfly's new wedd ing s ta tionery includes 46 photo and non-photo s a ve-the-da tes in two ca rd s izes , either 5'x7' or
4.5'x5. 5', a nd 40 non-photo brida l shower inv ita tions . Many of the sav e-the-dates and invita tions include matching wedding thank you c ards
a nd a ddres s labels to c omplete the perfect look . Always on trend, S hutterfly 's wedding stationery offerings include not only bol d colors lik e
lime, orange and bright pink , but also s oft pink s , blues and greens for the more traditi ona l bride. T here is also a wide v ariety of silhouettes
a nd nature-inspired themes for thos e planning des tina tion weddings. For the modern bride, fres h new patterns upda ted with on-trend colors
offer a si mple choice. T he new s ty les are from popular des igners including S ta cy Claire B oyd, E rin C ondren, T ag & Co. a nd W hitney E n glish.
As with all S hutterfly merchandis e, the wedding s tationery c ollection is supported by the company's c us tomer s ervi ce including one of the turna round t
Unis erve C ommunic ations C orp. Appoints Aziz P ira ni as Unis erve C ommunications C orp. a ppointed Az iz P irani as a director of the compa ny effective J une 17, 2009. M r. P irani brings to U niserve
Direc tor of the C ompa ny E ffectiv e J une 17, 2009 over 30 y ears of experience in the I T S erv ices a nd T elecommunica tions indus try .
X ing to S top E xpa ns ion in C hina Xing will probably consider s topping expans ion in s ome countries lik e C hina.
Acceleriz e N ew Media Inc. Announces the L aunc h of I ts Accelerize New M edia I nc. announced the la unch of its la tes t financia l portal. W hile allowing a dvertis ers to rea ch a targeted a udience, the
L ates t F inancia l P ortal company miss ion is to educ ate the inves tment community about C hinese public c ompanies listed on U .S . a nd interna tiona l exc ha nges and
become a lea ding destination for C hinese inv estment opportunities. C hines eP ublicC ompanies. c om provides inves tors with news a nd
informa ti on: News-P res s relea s e s yndic atio n s ervices for public companies. O pi nion-Independent, unbias ed covera ge written by in-hous e
fina nc ia l profes siona ls an d s elect third parties . R es earch-Acc es s to indus try and company res ea rch reports designed to s hed light on under-
followed C hinese public c omp anies. E duc ation-E ducational content co vering C hines e polic ies , economics, a nd other topics neces sa ry to
ma k e informed inves tment decisions . Acceleriz e intends to genera te revenues by implementing the following progra ms : P erformance B ased
Ma rk eting-C hineseP ubl icC ompa nies . com will feature the produc ts and s ervic es of leading legal and a ccoun ting firms interested in obta ining
Chines e c lients through dis pla y advertising, targeted lead generation, a nd e-ma il ma rk eting.
F luid Mus ic C a na da I nc. Announces Ma na gement F luid Mus ic C a na da I nc. anno unced tha t it held its a nnua l a nd s pecia l meeting on J une 29, 2009. At the meeting, s ha reholders elected the
Changes following individua ls as directors of the corpora tion: Lorne K . Abony , Direc tor a nd CE O , J us tin F . B eck ett, D irector, R ic ha rd Weil ,
Independent D irector, J a mes La nthier, D irec tor and C hief F inancia l O fficer, Ha rvey S olursh, Independent D irector a nd Ana toly P lotkin,
Independent D irector. M r. R iv kin will cease to hold the office of P res ident of the c orporation effecti ve June 29, 2009. H owever, the compa ny
a nnounced that it ha s entered into a cons ulting agreement with Mr. R ivk in purs ua nt to which he will continue to provide cons ulting s ervices to
the corporation.
T he9 Limited a nnounc ed dela y ed 20-F filing O n 07/01/2009, T he9 L imited announced tha t they will be una ble to file their next 20-F by the deadline requi red by the S E C .
2K S ports I nc. P a rtners with T encent H oldings Ltd. to 2K S ports I nc. announced its pa rtners hip with T encent H oldings Limited to c o-de velop the online v ersio n of N B A 2K a nd distribute it to C hina
B ring N B A 2K O nli ne to As ia a nd other k ey ma rkets. 2K S ports has s ecu red a multi-year lic ense to devel op the online s imula tion game, which will inc lude all of the N B A
tea ms , as well as current a nd retired N B A players .
T ree. Com, I nc. (N asda qG M: T R E E ) a cquired home improv ement profes sionals directory serv ice of P erform Loca l, Inc . on J uly 1, 2009. T he
fina nc ia l terms of the transa ction were not dis cl osed.
T ree. Com, I nc. (N asda qG M: T R E E ) co mpleted the acquis ition of home improv ement profes sionals directory serv ice of P erform Loca l, I nc.
on J uly 1, 2009.
IB 3 N etwork s Announc es W eb S ite R edes ign P roject for IB 3 Network s I nc. and its wholly owned s ubsidiary iB eam S olutions L LC a nnounc ed that it has been contrac ted to redesi gn the web s ite a nd
F eeC orp E nvironmenta l S ervices online pres ence for F eeC orp E nvironmental S ervices of O hio. iB ea m S olutions ha s been reta ined to redes ign F eeC orp's compa ny web s ite
a nd to c reate a templa te that can be used as a second s ite for a new divis ion. T he new s ite will inc lude an up-to-date look a nd feel, c ustomer
friendly na vigation, a nd a reas where customers a nd pros pective cus tomers c an a s k ques tions a nd interact.
Digita lT own I nc . Announces E xecutiv e C hanges O n J uly 2, 2009, the board of direc tors of Digita lT own I nc. a cc epted the res igna tion of J ohn W itham a s chief financial officer. E ffec tiv e J uly 2,
2009, Mr. P a ul G ramstad was appointed a s c hief financi a l officer. Mr. G ra ms ta d is c urrently serv ing a s controller and principa l a ccounting
officer of the compa ny. M r. G rams tad prev iously s erved a s ac ting C F O of the c ompany from O c tober 5, 2007, to S eptember 16, 2008.
a rranged in August 2008, was due for repa y ment in April 2010. T he new S E K 3.0 billion three year term loan, which was overs ubs cribed, ha s
been arranged by DnB NO R B ank AS A, N ordea B ank AB (public ), S k andina vis k a E ns ki lda B a nk en A B (public) and S v ensk a H a ndelsba nken
AB (public ) a s Ma ndated Lead Arra ngers a nd by S wedba nk A B (public) as J oint L ea d Arranger. T he S E K 3. 0 billion credit fac ility was
a nnounced on A ugust 27, 2008, being put in plac e in order to finance the ac quis ition of N ova Telev isa B ulga ria , a s well a s to provide
continued financia l flexibility for the G roup to make further inves tments and enhance sha reholder returns .
Netea se. c om I nc. F ails to O pen Firs t W ow G ame S erv ers Netea se. com Inc. fa iled to open the first WO W ga me s ervers in J une as scheduled as the company ha s not y et rec eive approva l from the
on T ime Minis try of C ulture for the c ontent of the W O W ga me. T he company in Ma y tha t they will open the first W O W game s ervers in la te J une that
have been ended by T he 9, the former C hinese operator of the game. T he a pprov al proc es s for ga me products rela ted to a foreign game
company will be sus pended if the foreign c ompany is involv ed in a n a rbitra tion or la ws uit filed by a Chines e c ompany, s o a s to protec t the
interes ts of the country's ga me enterpris es , a cc ording to the G eneral A dminis tration of P ress and P ublica tion of C hina .
K ings oft, Q ihoo C oopera tes in Antivirus B usines s K ingsoft C o. Ltd. announced tha t it would ca rry out the deepe ned c oopera tion with Q i hoo C orporation. T he two pa rties a greed to l a unch
Q ihoo-cus tomiz ed K ings oft Internet S ec urity antivirus software a nd K ings oft-cus tomiz ed Q ihoo 360 S afe W eb browsers to cons umers, and
help promote eac h other's products on their own webs ites . T he c oopera ti on is ex pected to boost the ex pa nsion of the K in gsoft Internet
S ecurity s oftwa re. E arlier, Q ih oo la rgely fa cilita ted the populariz a ti on of K a s pers ky L ab's anti-virus s oftware, too.
 Page 9

VALUATION
Online Gaming companies lead market-cap charts: Twelve companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-eight of the 90 companies have market caps under US$100 million, with 23 under
US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over
US$18 billion.

M a r k e t C a p (U S D m )
T e n c e n t H o ld in g s L td .
N e te a s e . c o m In c .
S h a n d a In te r a c tiv e E n te r ta in me n t L td . 3506.7
IA C /In te r A c tiv e C o r p. 2435 .8
S o h u . c o m In c . 2230.0
C h a n g y o u . c o m L imite d 2135 .7
O pe n T e x t C o r p. 1865.0
M o d e r n T ime s G r o u p M tg A B 1860.5
G ia n t In te r a c tiv e G r o u p, In c . 17 72.9
G r e e , In c . 1740.4
P e r f e c t W o r ld C o . , L td .
C h in e s e G a me r In te r n a tio n a l 11 37.4 1374.0
M ix i, In c . 9 55.2
V a lu e C lic k In c . 851.4
K in g s o f t C o . L td . 818.9
U n ite d O n lin e In c . 519.0
N e tD r a g o n W e bS o f t, In c . 384.6
S h u tte r f ly , In c . 32 6.7
S K C o mmu n ic a tio n s C o . , L td . 32 6.1
G u n g H o O n lin e E n te r ta in me n t, In c . 304.0
G ig a Me d ia L td . 297.1
G a ma n ia D ig ita l E n te r ta in me n t C o . , L td . 273.1
N E O W IZ G a me s C o r p o r a tio n 266.5
T h e 9 L imite d 24 6.5
X IN G A G 220.7
O pe n w a v e S y s te ms In c . 185.8
A c to z S o f t C o . , L td . 169.2
C D C C o r p. 151.7
D A D A S pA 140.7
O A O R B C In f o r ma tio n S y s te ms 128.0
G a me O n C o L td . 114.9
Y e d a n g O n lin e C o r p. 111.1
T r e e . C o m, In c . 99 .4
M y r ia d G r o u p A G 92.0
C y be r ple x In c . 87.5
H a n bitS o f t, In c . 79.7
K A B D is tr ibu tio n In c . 78.3
J u mpT V In c . 73.5
T h e S tr e e t. c o m, In c . 61 .5
D ig ita lT o w n , In c . 55.5
G e o S e n tr ic O y j 50.0
N g i G r o u p In c . 50.0
S p a r k N e tw o r k s , In c . 48.9
E o lith C o . L td . 45.4
W e b z e n In c . 42.1
A Q In te r a c tiv e , In c . 39.6
F r o g s te r In te r a c tiv e P ic tu r e s A G 38.7
N e X p lo r e C o r p o r a tio n 33.5
F lu id Mu s ic C a n a d a , In c . 29 .4
G r a v ity C o . , L td 28 .9
Y n k K o r e a In c . 28 .1
S o c ia lw is e , In c . 26 .9
N o r th g a te T e c h n o lo g ie s L imite d 26 .3
W iz z a r d S o f tw a r e C o r p o r a tio n 24 .4
D X N H o ld in g s B h d 24 .1
L o o k S ma r t, L td . 21.0
D o lp h in D ig ita l M e d ia , In c . 20.7
B e y o n d C o mme r c e , In c . 19.8
B r o a d W e bA s ia In c . 19.5
J u mbu c k E n te r ta in me n t P ty L td . 14.9
A c c e le r iz e N e w M e d ia , In c . 13.8
IA S E n e r g y , In c . 13.3
L in g o Me d ia C o r p o r a tio n 13.2
Q u e pa s a C o r p. 12.6
S pe c tr u mD N A , In c . 12.2
V O IS , In c . 11.9
U O M O Me d ia , In c 11.6
E x te n s io n s , In c . 8.9
S N A P In te r a c tiv e , In c . 4.9
MO K O . mo bi L imite d 4.8
B r ig h t T h in g s plc 4.8
Ma g n itu d e In f o r ma tio n S y s te ms In c . 4.1
W o r ld s . c o m In c . 3.9
C o r n e r W o r ld C o r p o r a tio n 3.9
is e e me d ia In c . 3.5
D ig ita lP o s t In te r a c tiv e , In c . 3.2
B e ta w a v e C o r p o r a tio n 2.9
B ig s tr in g C o r p. 1.8
U n is e r v e C o mmu n ic a tio n s C o r p. 1.7
L iv e W o r ld In c . 1.2
A s s o c ia te d Me d ia H o ld in g s In c . 0.9
T h e P a r e n t C o mpa n y 0.7
W y n d s to r m C o r p o r a tio n 0.7
Z ipL o c a l In c . 0.3
C h in a G a te w a y C o r p o r a tio n 0.3
F in a n c ia l M e d ia G r o u p, In c . 0.2
T o ta l S po r t O n lin e A S 0.1
S N M G lo ba l H o ld in g s 0.0
S o c ia l M e d ia V e n u r e s , In c . 0.0
D ibz In te r n a tio n a l, In c . 0.0
0 500 1 ,000 1,500 2,000 2,500 3,000 3,5 00 4,000

Figure 8. Market Cap Ranking

Source. Capital IQ

TEV/Revenue (LTM) averages 4.6x: The overall average TEV/Revenue (LTM) multiple for our group is 4.6x (versus 5.3x
last week) (Figure 9). One company trades at more than 35x revenue – Bigstring Corp. (OTCBB:BSGC) at 43.2x – closely
followed by with Dolphin Digital (OTCBB:DPDM) at 28.0x. The median is only 1.8x. Note that we exclude multiples greater
than 50x. Thirty-five companies have multiples under 1.9x.
 Page 10

T E V/L T M R e v e nue (x)

50. 0

45. 0 43. 2

40. 0

35. 0

30. 0 28. 0

25. 0
8 19.
18.19. 1 2
20. 0 17.18.
6 4
13. 7
15. 0 11. 5
10. 0 7. 88. 8
A v era ge, 4. 6 6. 06. 66. 6
4. 64. 64. 6
3. 23. 23. 33. 53. 54. 04. 14. 1
5. 0
21. 21. 21. 21. 21. 31. 31. 41. 51. 81. 82. 02. 22. 42. 52. 52. 62. 9
0. 00. 00. 10. 20. 20. 20. 20. 20. 40. 40. 40. 40. 50. 60. 70. 70. 80. 91. 01. 01. 11.
0. 0

NEOWIZ Games Corporation

MOKO.mobi Limited

UOMO Media, Inc

J umbuck Entertainment Pty Ltd.

Gamania Digital Entertainment Co., Ltd.

GungHo Online Entertainment, Inc.

Chinese Gamer International

Northgate Technologies Limited

DXN Holdings Bhd

Changyou.com Limited
Uniserve Communications Corp.

Modern Times Group Mtg AB

The Parent Company

Tree.Com, Inc.
CDC Corp.

GameOn Co Ltd.

SK Communications Co., Ltd.

Beyond Commerce, Inc.

CornerWorld Corporation
Fluid Music Canada, Inc.

DigitalPost Interactive, Inc.

Lingo Media Corporation

Dolphin Digital Media, Inc.

SNM Global Holdings

GeoSentric Oyj
XING AG

Frogster Interactive Pictures AG

Shanda Interactive Entertainment Ltd.
China Gateway Corporation
Ngi Group Inc.

United Online Inc.

SNAP Interactive, Inc.

Open Text Corp.

JumpTV Inc.
Myriad Group AG
AQ Interactive, Inc.

IAC/InterActiveCorp.

Spark Networks, Inc.

Cyberplex Inc.

GigaMedia Ltd.
ValueClick Inc.

iseemedia Inc.

NetDragon WebSoft, Inc.

Eolith Co. Ltd.

Sohu.com Inc.

Mixi, Inc.

Tencent Holdings Ltd.

Associated Media Holdings Inc.

Bright Things plc
Total Sport Online AS
Perfect World Co., Ltd.

Openwave Systems Inc.

ZipLocal Inc.

HanbitSoft, Inc.
KAB Distribution Inc.

YedangOnline Corp.
Ynk Korea Inc.

Bigstring Corp.
DADA SpA

Shutterfly, Inc.

Accelerize New Media, Inc.

Wizzard Software Corporation

Kingsoft Co. Ltd.
Actoz Soft Co., Ltd.

Figure 9. 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 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (17), trading at an average multiple of 13.7x (versus. 14.3x last week). On a geographic basis, the
United States has the most companies (38), trading at an average of 5.7x revenue (versus 5.7x last week) (Figure 11).
Ten of the companies are Canadian (average 4.8x revenue).

Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

20.0 17.6 20.0
17.6
18.0 18.0
16.0 16.0
14.0 13.7
14.0
12.0 10.6 12.0
(x)

10.0
(x)

9.1 10.0 7.8

8.0 7.8 7.4 7.4
8.0 7.4
6.0 4.6 4.1 3.4 5.8 5.7
2.8 2.6 2.5 2.5 6.0 4.8 4.6
4.0 2.0 2.0 1.9 1.8 1.4
0.8 0.5 4.0 2.6
2.0 2.0 2.0 2.0 1.4
0.0 0.4 0.20.0 2.0 0.8 0.5
0.4 0.2 0.0
OTCNO

OTCPK

0.0
OTCBB
GTSM

NasdaqGM
SEHK
HLSE

OSE

KOSE

TSE
NasdaqGS

RTS
OM
CM
XTRA

AMEX

TSX

KLSE

BSE
AIM

TSXV

SWX

ASX

Germany
United
Finland

China

United
Canada

Japan

Malaysia
Hong Kong

India
Russia
Italy
South
Taiwan

Australia
Norway
Switzerland

Sweden

# Companies 1 17 2 3 1 2 1 4 12 2 1 1 4 7 2 5 14 1 1 1 5 1 1
# Companies 1 1 3 2 10 38 10 1 1 6 9 2 1 1 1 1 1 1

Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ

TEV/EBITDA (LTM) averages 10.1x: The average multiple for the 35 companies with positive EBITDA (and multiples
under 100x) is 10.1x LTM EBITDA (vs. 9.9x last week), led by Tencent Holding’s (700-SEHK) 38.4x multiple (Figure 12).
Fourteen of the companies have EBITDA multiples under 7x. The median multiple is 9.2x (vs. 8.7x last week).
 Page 11

T E V/L T M E B IT DA (x)

45. 0

40. 0 38. 4

34. 2
35. 0

30. 0 27. 7

25. 0 23. 2

20. 0 18. 6

14. 1 14. 4 14. 8

15. 0 12. 9
11. 5 12. 0
A v era ge, 10. 1 9. 7 9. 9 10. 3 10. 4
9. 2 9. 2 9. 3
10. 0 7. 1 7. 1 7. 3
4. 9 5. 4 5. 6
3. 7 3. 7 4. 2 4. 5
5. 0 2. 5 2. 9
1. 9
0. 1 0. 2 0. 3 0. 8
0. 0
NEOWIZ Games Corporation
J umbuck Entertainment Pty Ltd.

Gamania Digital Entertainment Co., Ltd.

GungHo Online Entertainment, Inc.

Chines e Gamer International

DXN Holdings Bhd

Changyou.com Limited
OAO R BC Information Systems

Modern Times Group Mtg AB

GameOn Co Ltd.

CDC Corp.

SK Communications Co., Ltd.

Shanda Interactive Entertainment Ltd.

Ngi Group Inc.

SNAP Interactive, Inc.

United Online Inc.

Open Text Corp.

XING AG
AQ Interactive, Inc.

Spark Networks, Inc.

ValueClick Inc.

NetDragon WebSoft, Inc.

Sohu.com Inc.

Cyberplex Inc.

IAC/InterActiveCorp.

Mixi, Inc.

Tencent Holdings Ltd.

Perfect World Co., Ltd.

KAB Distribution Inc.

YedangOnline Corp.

Ynk Korea Inc.

DADA SpA

Shutterfly, Inc.

Kingsoft Co. Ltd.

Actoz Soft Co., Ltd.

Figure 12. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (17), trading at an average multiple of 3.7x (vs. 3.7x last week). On a
geographic basis, the United States has the most companies (38), trading at an average of 6.9x EBITDA (Figure 14). Ten
of the companies are Canadian (average 10.4x EBITDA).

Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

25.0 23.1 25.0
23.1
20.0 20.0
20.2
15.0 15.0 14.6
14.614.1
(x)

(x)

12.1
10.0 10.710.3 10.4 10.3 9.2
9.2 7.3 10.0 7.8
6.2 5.6 6.9 5.6
5.0 4.2
3.7 3.7 1.9 0.2 5.0 5.4
0.0 0.0 3.7
0.0 1.9 0.2
0.0 0.0
OTCBB
GTSM

SEHK

KOSE

OSE

NasdaqGS

TSE

RTS
OM

CM
TSX

XTRA

AMEX

KLSE

BSE
SWX
ASX

Germany
China

Canada

Japan
United

Hong Kong

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland
# Companies 2 3 7 1 4 2 1 14 5 1 2 1 17 2 1 1 1
# Companies 3 9 10 10 2 1 6 38 1 1 1 2 1 1

Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ

P/E (LTM) averages 17.2x: The average multiple for the 29 companies with positive earnings (and multiples under 100x)
is 17.2x LTM EPS (vs. 17.9x last week), led Tencent Holding’s (700-SEHK) 48.9x multiple (Figure 15). Ten of the
companies have P/E multiples under 10x. The median is just 13.2x.
 Page 12

P/E L T M (x)

60. 0

48.9
50. 0 47. 1
44. 1

40. 0

29.1 29.2 29. 5

30. 0
25. 6 25. 9
23.9
20. 7 21. 0
18. 4
20. 0 A verage, 17. 2
14.6 15.0
13. 3 13. 8
11. 7 12.0 12. 5
8.8
10. 0 7. 4
5.6 6. 1
4.0
1.9 2.3 2. 5 2. 8

0. 0

NE O WIZ G ames C orpora tion

J umbuck E ntertainment P ty Ltd.

G amania Digital E ntertainment C o. , Ltd.

C hines e G amer International

DXN Holdings B hd

C ha ngy ou.c om L imited

G iant Interactive G roup, Inc.

G a meO n C o Ltd.
Modern T imes G roup Mtg AB
Neteas e.c om Inc .

S handa Intera ctive E ntertainment L td.

S NAP Interactive, Inc.

O pen T ex t C orp.
C y berplex Inc .

G iga Media L td.

S ohu. com Inc .

NetDragon WebS oft, Inc .

S park Network s , Inc .

IAC /InterActiveC orp.

Worlds . com Inc .

Mix i, Inc .

T encent Holdings L td.

XING AG
P erfect World C o., Ltd.

Y eda ngO nline C orp.

K ings oft C o. Ltd.

DADA S pA

Actoz S oft C o. , Ltd.

Figure 15. P/E Ranking
Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (17), trading at an average multiple of 16.5x. On a geographic basis, the United States has
the most companies (38), trading at an average of 17.2x earnings (Figure 17). Ten of the companies are Canadian
(average 18.9x EPS).

Average P/E - By Exchange Average P/E - By Country

40.0 36.6 35.0
30.2
35.0 30.0

30.0 25.0 28.3

30.2 23.9 22.5
25.0 27.0 20.0
23.9 21.0
(x)

22.5 18.9
(x)

20.0 21.0 15.0 17.2

16.5 11.8
15.0 15.0 10.0
10.8 8.8 6.1 5.6
10.0 6.1 5.6 5.0 4.0
5.0 4.0
1.9 0.0 0.0
0.0 0.0
Germany
Japan

Canada

United

China

Malaysia
Italy

South
Korea

States
Taiwan

Australia

Sweden

Switzerland
OTCBB
GTSM

TSE

SEHK

KOSE

NasdaqGS
CM

OM
XTRA

AMEX

TSX

KLSE

NYSE

SWX
ASX

# Companies 6 3 1 9 2 10 38 10 2 1 1 1
# Companies 2 5 3 1 7 2 17 2 14 4 2 1 1 1 1

Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
 Page 13

UPCOMING EVENTS

E arnings Calendar
C ompany D ate & T ime Qu arter C onf C a ll D etails
T ree. C om, Inc . (N a sda qG M :T R E E ) T hursda y , J ul y 30, 2009 11: 00 A M (E DT ) Q 2 2009 877-723-9523

Figure 18. Earnings Calendar

Source. Company reports
 Page 14

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 1 3.8 0.5 0 25.0 % -3.8 % 56 .3% 42 .9% -33 .3% -28. 6%
Actoz S of t C o., L td. KR W A 052 790 KO SE 16 9.2 2 5,10 0.0 0 4.6 % -28. 8% 88 .7% 14 7.3% 2 08. 0% -30. 3%
AQ Inte ractive , Inc. JPY 3 838 TSE 3 9.6 6 9,10 0.0 0 -2.9 % -9.1 % 48 .6% 13 0.3% -43 .8% -60. 5%
As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .9 0.0 2 1 233 .3% 12 33. 3% 132 8.6 % 56 6.7% NM -60. 0%
B igstring Corp. US D B S GC OT C B B 1 .8 0.0 3 6.3 % 3 6.0 % 14 2.9% 10 0.0% -71 .7% -83. 0%
B e tawave Corpora tion US D B W AV OT C B B 2 .9 0.1 0 0.0 % 3 3.3 % -3 1.0% -5 4.5 % -71 .4% -75. 0%
B e yond Commerce, Inc. US D B Y OC OT C B B 1 9.8 0.4 4 -29. 0% -56. 4% -6 0.0% -6 0.0 % -86 .3% -86. 7%
B right T hings plc GBP A IM:B G T AI M 4 .8 0.0 2 3.4 % 1 4.5 % 9 .1% 20 .0% -25 .0% -40. 0%
B roa dW ebAs ia Inc. US D B W BA OT C P K 1 9.5 0.2 3 -22. 8% -22. 8% -5 4.9% -7 7.2 % -84 .7% -92. 1%
C DC C orp. US D C H IN .A N as da qG S 15 1.7 1.4 3 -4.7 % -7.7 % 26 .5% 18 .2% -40 .7% -54. 9%
C ha ngyou. com Limite d US D C Y OU N as da qG S 2,1 35. 7 3 8.8 3 -7.4 % 0.1% 62 .9% NM NM -17. 1%
C hina G ate wa y C orpora tion US D CGWY OT C P K 0 .3 0.0 2 -25. 0% 6 50.0 % 65 0.0% 65 0.0% -50 .0% -57. 1%
C hine s e G amer International TWD G TS M:3 083 GT S M 1,1 37. 4 44 6.0 0 6.2 % 3 1.2 % 13 9.8% 38 4.8% 4 43. 9% -3.7 %
C ornerW orld C orporation US D CWR L OT C B B 3 .9 0.0 6 -14. 3% -33. 3% -5 7.1% -8 7.2 % -85 .4% -92. 4%
C yberplex Inc. C AD T S X:CX TSX 8 7.5 1.5 7 -7.6 % 1.3% 63 .5% 33 6.1% 1 96. 2% -21. 1%
D ADA S pA E UR C M :DA CM 14 0.7 6.2 3 -1.1 % 9.1% 46 .2% -1 3.7 % -41 .2% -50. 0%
D XN Holdings B hd MY R DXN KL SE 2 4.1 0.3 7 -3.9 % -6.3 % 23 .3% 5 .7% -2. 6% -21. 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 3 .2 0.0 4 22.9 % 1 68.8 % 11 5.0% 95 .5% -71 .3% -74. 6%
D igitalT own, Inc. US D DG T W OT C B B 5 5.5 2.0 5 0.0 % -18. 0% -1 8.0% -3 1.7 % -18 .0% -66. 4%
D olphin Digital Me dia, Inc. US D DP DM OT C B B 2 0.7 0.4 0 -21. 6% -33. 3% -3 8.5% -4 8.7 % NM -64. 6%
E olith C o. L td. KR W A 041 060 KO SE 4 5.4 79 5.0 0 0.6 % 1 9.5 % 45 .9% 45 .9% 6.0 % -31. 5%
E xte ns ions , Inc. US D E XT I OT C P K 8 .9 0.2 0 33.3 % 3 3.3 % 33 .3% -8 0.2 % NM -80. 2%
F inancia l Media G roup, Inc. US D F NGP OT C B B 0 .2 0.0 0 -10. 0% -32. 5% -7 0.0% -9 3.3 % -99 .7% -99. 7%
F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 2 9.4 0.6 5 -17. 7% -7.1 % 30 .0% 85 .7% -57 .0% -67. 3%
F rogs te r Interactive P icture s AG E UR FR G XT R A 3 8.7 1 1.8 2 19.4 % 5 0.8 % 68 .9% 82 .1% 1 62. 1% 1.9 %
G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 27 3.1 5 9.3 0 2.2 % 6.5% 69 .4% 16 7.1% 1 05. 9% -5.4 %
G a me On C o L td. JPY 3 812 TSE 11 4.9 11 2,90 0.0 0 5.1 % -3.4 % 24 .8% -1 2.5 % -9. 7% -30. 9%
G e oS e ntric O yj E UR G E O1V H LS E 5 0.0 0.0 4 0.0 % 0.0% 33 .3% 33 .3% -20 .0% -42. 9%
G iant Intera ctive G roup, Inc. US D GA NYS E 1,7 72. 9 7.8 5 -4.8 % -15. 6% 7 .5% 24 .0% -28 .0% -33. 3%
G iga Media Ltd. US D G IG M N as da qG S 29 7.1 5.4 5 -8.6 % -13. 5% -1 .1% -1 5.6 % -54 .7% -59. 5%
G ravity C o., L td US D G RV Y N as da qG M 2 8.9 1.0 4 -4.6 % -12. 6% 16 .9% 92 .6% -13 .3% -47. 7%
G ree, Inc. JPY T S E :36 32 TSE 1,7 40. 4 7,40 0.0 0 9.6 % 1 6.2 % 29 .1% 40 .2% NM -3.4 %
G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 30 4.0 25 2,00 0.0 0 5.0 % 6.8% 94 .6% 15 5.8% 21.2 % -10. 0%
H anbitS oft, Inc. KR W A 047 080 KO SE 7 9.7 4,62 0.0 0 4.3 % -6.7 % 31 .4% 35 .9% 57.7 % -30. 4%
IAC /InterActiveC orp. US D I ACI N as da qG S 2,4 35. 8 1 6.1 4 1.3 % -1.0 % 1 .9% 2 .9% -52 .4% -68. 0%
IAS E nergy, Inc. US D I AS C .A OT C B B 1 3.3 0.1 9 -5.0 % -5.0 % 17 1.4% 85 0.0% -9. 5% -45. 7%
is ee media Inc. C AD IEE T S XV 3 .5 0.0 8 6.7 % 1 4.3 % -2 0.0% 6 .7% -55 .6% -70. 4%
J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 4.9 0.3 8 -2.6 % -9.5 % -1 7.4% -2.6% -37 .7% -38. 7%
J umpT V Inc. C AD T S X:J T V TSX 7 3.5 0.7 5 7.1 % -1.3 % 36 .4% 11 4.3% -21 .9% -41. 4%
K A B Dis tribution Inc. C AD T S X:K AB TSX 7 8.3 0.6 5 3.2 % 6.6% 12 .1% 47 .7% -14 .5% -28. 6%
K ings oft Co. Ltd. HKD 3 888 S E HK 81 8.9 5.8 5 2.8 % 3.9% 72 .6% 11 7.5% 56.4 % -2.5 %
Lingo Media Corporation C AD T S XV :LM T S XV 1 3.2 1.1 9 8.2 % 1 9.0 % 48 .8% 19 .0% -34 .6% -38. 0%
Live World Inc. US D L VW D OT C P K 1 .2 0.0 4 -33. 3% -52. 9% -6 9.2% -1 1.1 % -85 .7% -87. 5%
LookS mart, Ltd. US D L OOK N as da qG M 2 1.0 1.2 3 0.8 % -5.4 % 3 .4% -2 7.6 % -67 .2% -69. 4%
M agnitude Information S ys tems Inc. US D M AG Y OT C B B 4 .1 0.0 1 -25. 0% -30. 8% -4 0.0% -6 5.4 % -55 .0% -70. 0%
M ixi, Inc. JPY 2 121 TSE 95 5.2 59 0,00 0.0 0 0.2 % 2 8.5 % 50 .9% 0 .9% -11 .1% -35. 9%
M ode rn Times G roup Mtg AB SE K MT G B OM 1,8 60. 5 22 2.0 0 2.3 % 2.3% 47 .5% 33 .3% -27 .9% -43. 1%
M OK O.mobi L imited AU D MKB AS X 4 .8 0.0 7 -6.7 % 6.1% -2 8.6% 40 .0% 40.0 % -30. 0%
M yriad G roup AG C HF MYR N SWX 9 2.0 4.7 0 -5.8 % -9.6 % 11 .6% -2 4.8 % -53 .0% -53. 9%
N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 26 6.5 3 2,15 0.0 0 0.2 % -9.9 % 30 .2% 20 9.9% 1 89. 6% -23. 5%
N etDragon W ebS oft, Inc. HKD 7 77 S E HK 38 4.6 5.6 4 12.1 % 5.6% 33 .0% 86 .8% -44 .0% -44. 6%
N ete as e.com I nc. US D NT E S N as da qG S 4,2 76. 7 3 3.3 0 -7.4 % -12. 2% 19 .5% 76 .9% 61.9 % -14. 0%
N eXplore Corpora tion US D N XP C OT C P K 3 3.5 0.6 0 -1.6 % 9.1% -2 0.0% -4 0.0 % -7. 7% -58. 6%
N gi G roup Inc. JPY 2 497 TSE 5 0.0 3 8,30 0.0 0 6.7 % 1 6.1 % 55 .4% -3 2.0 % -58 .0% -70. 0%
N orthgate Te chnologies L imited IN R 5 900 57 BS E 2 6.3 3 6.6 5 -12. 8% -35. 7% -7 .8% -4 0.4 % -88 .0% -88. 5%
Open T e xt Corp. US D O TE X N as da qG S 1,8 65. 0 3 5.4 4 -3.0 % 2.8% 7 .0% 13 .7% 16.7 % -9.3 %
Openwave S ys tems Inc. US D O PW V N as da qG S 18 5.8 2.2 3 -6.7 % 1 7.4 % 85 .8% 17 8.8% 62.8 % -9.7 %
P e rfect W orld C o., Ltd. US D P W RD N as da qG S 1,3 74. 0 2 8.2 5 -6.0 % 2 0.9 % 61 .2% 58 .4% 3.6 % -16. 7%
Quepa s a C orp. US D Q PSA OT C P K 1 2.6 0.9 9 41.4 % 2 5.3 % 4 .2% -4 7.9 % -51 .9% -71. 4%
OA O R B C Information S ys tems US D R BC I R TS 12 8.0 0.9 2 2.6 % -31. 6% 13 0.8% 84 .6% -89 .0% -89. 2%
S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 3,5 06. 7 5 2.5 2 -5.7 % -15. 6% 23 .2% 78 .2% 1 31. 1% -19. 2%
S hutte rf ly, Inc. US D S F LY N as da qG S 32 6.7 1 2.9 8 -10. 2% -8.5 % 30 .1% 65 .4% 27.0 % -14. 9%
S K C ommunications Co., Ltd. KR W A 066 270 KO SE 32 6.1 9,88 0.0 0 0.7 % -14. 8% -0 .2% 56 .3% -30 .7% -38. 4%
S N AP Inte ra ctive , Inc. US D S T VI OT C B B 4 .9 0.4 5 -30. 8% -43. 0% -4 0.0% -3 5.7 % -34 .8% -58. 3%
S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 1 3 66. 7% 1 80.0 % 60 0.0% -3 0.0 % -99 .5% -99. 6%
S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.2 5 2 400 .0% 24 00. 0% -5 1.9% -7 6.0 % 0.0 % -95. 0%
S ocia lwis e, Inc. US D S CL W OT C B B 2 6.9 0.6 2 -10. 1% -15. 1% 67 .6% -2 2.5 % -73 .8% -78. 1%
S ohu. com Inc. US D S OH U N as da qG S 2,2 30. 0 5 8.2 8 -9.8 % -14. 3% 28 .1% 25 .8% -16 .5% -33. 8%
S park N etworks , Inc. US D L OV AM E X 4 8.9 2.3 8 -0.8 % -0.4 % 8 .2% -8.5% -41 .7% -46. 6%
S pectrumDN A, Inc. US D S P XA OT C B B 1 2.2 0.2 5 25.0 % -32. 4% 66 .7% 31 .6% NM -58. 3%
T encent Holdings L td. HKD 7 00 S E HK 20, 383 .9 8 7.5 5 -7.4 % -3.7 % 39 .3% 78 .7% 33.5 % -8.6 %
T he P arent C ompany US D K IDS .Q OT C P K 0 .7 0.0 3 20.0 % 1 00.0 % 17 2.7% -4 0.6 % -98 .1% -98. 9%
T he 9 L imited US D NC TY N as da qG S 24 6.5 9.1 9 -12. 5% -20. 2% -3 8.6% -3 6.5 % -63 .3% -67. 8%
T he S treet.com, Inc. US D T S CM N as da qG M 6 1.5 2.0 1 -2.9 % 3.1% 1 .0% -3 8.7 % -67 .8% -72. 6%
T otal S port Online A S N OK T OS O OT C N O 0 .1 0.0 3 0.0 % 0.0% -2 5.0% -2 5.0 % -40 .0% -40. 0%
T ree.C om, Inc. US D TR EE N as da qG M 9 9.4 9.2 1 -3.4 % -21. 4% 89 .1% 13 0.3% NM -29. 5%
U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 1 .7 0.0 8 14.3 % 6 0.0 % 10 0.0% 10 0.0% -70 .4% -69. 2%
U nited Online Inc. US D UNTD N as da qG S 51 9.0 6.2 1 -4.5 % -11. 7% 25 .7% 5 .8% -38 .8% -49. 3%
U OMO Media , Inc US D U OMO OT C B B 1 1.6 0.1 4 -3.6 % -32. 5% 68 .8% 12 .5% -72 .4% -87. 3%
V a lueC lick Inc. US D V CL K N as da qG S 85 1.4 9.7 9 -13. 7% -13. 2% 10 .0% 41 .3% -32 .8% -36. 7%
V O IS , Inc. US D V OIS OT C B B 1 1.9 1.4 4 30.9 % 3 11.4 % 52 6.1% 26 0.0% -73 .8% -74. 3%
W ebze n Inc. US D W ZE N N as da qG M 4 2.1 3.5 5 10.5 % -16. 7% 59 .2% 27 3.7% 21.2 % -24. 1%
W iz za rd S of twa re Corpora tion US D W ZE AM E X 2 4.4 0.5 1 0.0 % -25. 0% 4 .1% -3 9.3 % -62 .2% -71. 0%
W orlds .com Inc. US D W DDD OT C B B 3 .9 0.0 8 -37. 5% -25. 0% -5 5.9% -6 2.5 % -70 .0% -81. 3%
W ynds torm C orporation US D W YND OT C P K 0 .7 0.0 4 14.3 % -92. 2% -6 6.7% -6 6.7 % -88 .6% -93. 3%
XIN G AG E UR O 1B C XT R A 22 0.7 3 0.0 5 0.6 % 0.2% 6 .6% -0.8% 0.2 % -16. 5%
Y e dangOnline Corp. KR W A 052 770 KO SE 11 1.1 8,99 0.0 0 7.0 % -8.4 % -1 .4% 42 .0% -17 .5% -27. 5%
Y nk K orea Inc. KR W A 023 770 KO SE 2 8.1 6,69 0.0 0 -1.6 % -0.1 % 42 .9% 48 .7% -38 .6% -47. 7%
ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 0.0 % 0.0% -6 6.7% -5 0.0 % -95 .5% -95. 5%

H igh 2 400 .0% 24 00. 0% 132 8.6 % 85 0.0% 4 43. 9% 1.9 %

Low -90. 0% -92. 2% -9 0.0% -9 8.0 % -99 .7% -99. 7%
A vera ge 587.9 42.4% 50.3% 57.4% 55.7% -16.3% -50.8%
M edian 0.0 % -3.6 % 27 .3% 20 .0% -37 .7% -48. 5%

Figure 19. Price Performance

Source. Capital IQ
 Page 15

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 13. 8 4.6 x - - - - - -
Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 1 69. 2 1.5 x - 7.1 x - 25 .9x - 2 .9x
AQ Inte ractive , Inc. G aming J a pan TSE 3 838 39. 6 0.2 x - 2.5 x - - - 0 .6x
As s ocia ted Media Holdings Inc. Mobile U nite d S tates OT C P K AS MH 0. 9 19.2 x - - - - - -
B igstring Corp. Ins ta nt Mes s aging U nite d S tates OT C B B BS G C 1. 8 43.2 x - - - - - -
B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 2. 9 - - - - - - 0 .4x
B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 19. 8 3.5 x - - - - - -
B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM:B G T 4. 8 17.6 x - - - - - -
B roa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 19. 5 - - - - - - -
C D C C orp. G aming H ong K ong N as da qG S C HIN .A 1 51. 7 0.4 x 0.4x 5.4 x 5.8x - 1 0.4 x -
C ha ngyou. com Limite d G aming C hina N as da qG S CY OU 2,1 35. 7 8.8 x 6.6x 14.4 x - 14 .6x 1 3.8 x 1 3.3x
C hina G ate wa y C orpora tion Mobile U nite d S tates OT C P K CG W Y 0. 3 0.0 x - - - - - -
C hine s e G amer International G aming T a iwan GTS M G T S M:308 3 1,1 37. 4 19.1 x - 34.2 x - 44 .1x - 1 6.6x
C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 3. 9 4.1 x - - - - - -
C yberplex Inc. Advertis ing C anada TSX T S X:C X 87. 5 1.2 x 0.9x 11.5 x 7.6x 8. 8x 1 0.3 x 8 .7x
D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 40. 7 0.8 x - 5.6 x - 23 .9x - -
D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 24. 1 0.5 x - 3.7 x - 4. 0x - 0 .5x
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 3. 2 6.6 x - - - - - -
D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 55. 5 - - - - - - -
D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 20. 7 28.0 x - - - - - -
E olith C o. L td. G aming S outh K ore a K OS E A 041 060 45. 4 3.3 x - - - - - 4 .4x
E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 8. 9 - - - - - - -
F inancia l Media G roup, Inc. D irect Marketing U nite d S tates OT C B B F NGP 0. 2 - - - - - - -
F luid Mus ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 29. 4 4.1 x - - - - - 3 .0x
F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 38. 7 11.5 x - - - - - 5 .8x
G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 2 73. 1 2.0 x - 12.0 x - 29 .2x - 3 .5x
G a me On C o L td. G aming J a pan TSE 3 812 1 14. 9 0.7 x - 2.9 x - 13 .3x - 1 .5x
G e oS e ntric O yj Mobile F inland H LS E G E O1V 50. 0 7.8 x - - - - - 8 .6x
G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,7 72. 9 - - - - 1. 9x 1 3.0 x 0 .3x
G iga Media Ltd. G aming T a iwan N as da qG S G IG M 2 97. 1 1.2 x 1.2x - 5.7x 11 .7x 1 1.0 x 2 .5x
G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 28. 9 - - - - - - -
G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,7 40. 4 - - - - - - 2 1.5x
G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 3 04. 0 2.5 x - 14.1 x - - - 4 2.8x
H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 79. 7 1.2 x - - - - - 2 .4x
IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,4 35. 8 0.4 x 0.4x 12.9 x 3.5x 20 .7x 3 1.0 x 1 .1x
IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 13. 3 - - - - - - -
is ee media Inc. C ontent C anada T S XV IE E 3. 5 1.8 x - - - - - 3 .1x
J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 14. 9 0.7 x - 1.9 x - 6. 1x - 1 .5x
J umpT V Inc. V ide o C anada TSX T S X:J T V 73. 5 3.5 x - - - - - 4 .4x
K A B D is tribution Inc. C ontent C anada TSX TS X:K AB 78. 3 1.2 x 1.2x 9.9 x 6.1x - - -
K ings oft Co. Ltd. G aming C hina S E HK 3 888 8 18. 9 6.0 x - 14.8 x - 18 .4x - 4 .4x
Lingo Media Corporation Le arning C anada T S XV TS XV :LM 13. 2 13.7 x - - - - - 1 3.9x
Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 1. 2 0.0 x - - - - - 0 .5x
LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 21. 0 - - - - - - 0 .8x
Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 4. 1 - - - - - - -
Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 9 55. 2 6.6 x - 18.6 x - 47 .1x - 7 .0x
Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,8 60. 5 1.4 x 1.3x 9.2 x 1 1.1 x 5. 6x 1 1.9 x -
MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 4. 8 3.2 x - - - - - 3 .6x
Myriad G roup AG Mobile S witz erland SWX MY R N 92. 0 2.6 x - - - - - 4 .2x
N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 2 66. 5 1.3 x - 4.9 x - 29 .5x - 1 4.9x
N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 3 84. 6 2.9 x - 7.3 x - 13 .8x - 2 .1x
N ete as e.com I nc. G aming C hina N as da qG S NT E S 4,2 76. 7 - - - - 2. 5x 1 4.8 x 0 .7x
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 50. 0 0.1 x - 0.8 x - - - 1 .1x
N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 26. 3 0.2 x - - - - - -
Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,8 65. 0 2.5 x 2.3x 9.7 x 8.4x 29 .1x 1 3.5 x -
Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 1 85. 8 0.4 x 0.4x - 4.8x - 3 5.4 x 2 .7x
P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 1,3 74. 0 0.2 x 1.0x 0.3 x 1.9x 2. 3x 1 0.7 x 0 .9x
Quepa s a C orp. S ocia l Ne tworking U nite d S tates OT C P K QP S A 12. 6 - - - - - - -
OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 1 28. 0 0.0 x - 0.2 x - - - -
S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 3,5 06. 7 0.0 x 0.2x 0.1 x 0.5x 2. 8x 1 4.7 x 1 .1x
S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 3 26. 7 1.2 x - 9.2 x 7.0x - - 1 .9x
S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 26. 1 1.8 x - 27.7 x - - - -
S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S TVI 4. 9 1.0 x - 3.7 x - 7. 4x - 2 .9x
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 0.0 x - - - - - -
S ocia lwis e, Inc. S ocia l Ne tworking U nite d S tates OT C B B S CL W 26. 9 - - - - - - 3 4.9x
S ohu. com Inc. G aming C hina N as da qG S S OH U 2,2 30. 0 4.0 x 3.5x 9.3 x 8.1x 12 .5x 1 6.1 x 6 .0x
S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 48. 9 0.9 x - 4.2 x - 15 .0x - -
S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 12. 2 - - - - - - 3 1.8x
T encent Holdings L td. P orta l C hina S E HK 700 20,3 83. 9 18.4 x - 38.4 x - 48 .9x - 2 0.4x
T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 7 0.2 x - - - - - -
T he 9 L imited G aming C hina N as da qG S NC T Y 2 46. 5 - - - - 0. 7x 1 2.6 x 0 .1x
T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 61. 5 - - - - - - 0 .8x
T otal S port Online A S Me dia N orway OT C NO T OS O 0. 1 4.6 x - - - - - -
T ree.C om, Inc. P orta l U nite d S tates N as da qG M TR E E 99. 4 0.4 x 0.4x - 4.8x - - 1 .3x
U nis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 1. 7 0.2 x - - - - - -
U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 5 19. 0 1.0 x 0.8x 4.5 x 3.3x - 8.2x -
U OMO Media , Inc Me dia C anada OT C B B U OMO 11. 6 18.8 x - - - - - -
V a lueC lick Inc. Me dia U nite d S tates N as da qG S VC LK 8 51. 4 1.3 x 1.4x 7.1 x 5.4x - 1 5.6 x 6 .9x
V O IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B VOIS 11. 9 - - - - - - 4 1.6x
W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 42. 1 - - - - - - 0 .0x
W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 24. 4 4.6 x - - - - - -
W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 3. 9 - - - - 25 .6x - -
W ynds torm C orporation C ontent U nite d S tates OT C P K W YND 0. 7 - - - - - - -
XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 2 20. 7 3.2 x - 10.3 x - 21 .0x - 7 .0x
Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 11. 1 2.2 x - 10.4 x - 12 .0x - 4 .1x
Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 28. 1 2.4 x - 23.2 x - - - 1 .5x
ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 3 0.6 x - - - - - -
H igh 20,3 83. 9 43.2 x 6.6x 38.4 x 1 1.1 x 48 .9x 3 5.4 x 4 2.8x
Low 0. 0 0.0 x 0.2x 0.1 x 0.5x 0. 7x 8.2x 0 .0x
A vera ge 587. 9 4.6x 1.5x 10.1x 5.6x 17.2x 15.2x 7.2x
Median 40. 8 1.8 x 1.0x 9.2 x 5.7x 13 .8x 1 3.3 x 3 .0x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 16

C omparable C ompany A nalys is > W eb 2.0

Su mmary b y C ountry

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 %

U nited S tates 38 C hina 37, 129.8 China 3,713. 0 C hina 3, 839. 3 C hina 1,774. 0 C hina 47. 9%
C anada 10 U nited S tates 4, 867.5 S weden 1,860. 5 U nited S ta tes 3, 795. 5 S weden 262. 3 Aus tral ia 37. 2%
C hina 10 J a pan 3, 204.0 Ta iwa n 569. 2 S weden 1, 712. 0 U nited S ta tes 245. 7 T aiwa n 36. 3%
S outh K orea 9 C anada 2, 147.8 Japan 534. 0 C a na da 969. 7 C a na da 193. 5 G ermany 31. 2%
J a pa n 6 S weden 1, 860.5 Ca na da 214. 8 S outh K orea 662. 5 J apan 109. 2 J a pa n 21. 9%
T a iwa n 3 T a iwa n 1, 707.6 Hong K ong 151. 7 J a pa n 502. 0 S outh K orea 85. 7 S weden 15. 3%
A ustra lia 2 S outh K orea 1, 097.1 Ita ly 140. 7 H ong K ong 389. 9 T a iwan 52. 3 I ta ly 14. 6%
G ermany 2 G erma ny 259.3 G erma ny 129. 7 T aiwan 365. 3 I taly 34. 2 M a la ys ia 13. 7%
S witz erla nd 1 H ong K ong 151.7 United S tates 128. 1 I ta ly 234. 0 H ong K ong 30. 8 R uss ia 13. 1%
H ong K ong 1 I ta ly 140.7 R us sia 128. 0 R uss ia 150. 6 R uss ia 19. 7 H ong K ong 7.9%
F inla nd 1 R uss ia 128.0 S outh K orea 121. 9 I ndia 115. 6 M alays ia 10. 7 S outh K orea 6.0%
I ta ly 1 S witz erla nd 92.0 S witzerland 92. 0 M a la ys ia 78. 0 G erma ny 10. 4 S witz erla nd 1.9%
U nited K ingdom 1 F inland 50.0 Finland 50. 0 G ermany 55. 9 Aus tralia 2. 9 U nited S ta tes -10.1%
I ndia 1 I ndia 26.3 India 26. 3 S witz erla nd 40. 0 S witz erland 0. 8 I ndia -23.5%
S weden 1 M alays ia 24.1 Malay sia 24. 1 Aus tra l ia 15. 3 N orway -1. 0 C anada -24.8%
R us sia 1 Aus tra lia 19.7 Australia 9. 8 F inla nd 5. 9 U nited K ingdom -1. 8 N orway -50.6%
M a la ys ia 1 U nited K ingdom 4.8 United K ingdom 4. 8 N orwa y 2. 1 F inland -15. 2 U nited K ingdom #DI V /0!
N orway 1 N orway 0.1 Norway 0. 1 U nited K ingdom 0. 3 I ndia -27. 1 F inla nd #DI V /0!

G rand To tal 90 G rand T otal 52,911.1 G rand Total 587.9 G rand T otal 12,933.8 G r and T otal 2,786.9 G rand T otal 6.7%

Figure 21. 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 %

OT C B B 17 SE HK 21, 587.4 S E HK 7,195. 8 OM 1, 712. 0 N a sdaqG S 1,692. 6 S EHK 42. 6%

N as da qG S 14 N asdaqG S 20, 402.0 OM 1,860. 5 N a sda qG S 484. 2 S E HK 663. 0 AS X 37. 2%
OT C P K 12 TSE 2, 900.0 NY S E 1,772. 9 S E HK 473. 1 OM 262. 3 GT SM 36. 3%
K OS E 7 OM 1, 860.5 Na s daqG S 1,457. 3 CM 234. 0 TSE 89. 7 XT R A 31. 2%
TSE 5 NYS E 1, 772.9 G TS M 705. 3 NYS E 218. 9 K OS E 78. 7 N asdaqG S 30. 1%
N as da qG M 5 GTS M 1, 410.5 TS E 580. 0 R TS 150. 6 GT S M 52. 3 TSE 22. 7%
TSX 4 K OS E 1, 026.1 OS E 304. 0 BSE 115. 6 CM 34. 2 OS E 18. 0%
T S XV 4 OS E 304.0 K OS E 146. 6 OS E 108. 5 R TS 19. 7 OM 15. 3%
S E HK 3 TSX 268.6 CM 140. 7 GT S M 90. 8 OS E 19. 5 CM 14. 6%
A ME X 2 XT R A 259.3 XT R A 129. 7 K OS E 85. 9 K LS E 10. 7 K LS E 13. 7%
ASX 2 N asdaqG M 253.0 RT S 128. 0 N a sda qG M 80. 9 XTR A 10. 4 R TS 13. 1%
XT R A 2 OT CB B 210.6 SWX 92. 0 TSE 78. 7 AM E X 6. 4 K OS E 5.2%
GT SM 2 CM 140.7 TS X 67. 2 K LS E 78. 0 AS X 2. 9 SWX 1.9%
S WX 1 R TS 128.0 Na s daqG M 50. 6 TSX 41. 0 SWX 0. 8 N asdaqG M 1.6%
H LS E 1 SWX 92.0 HL S E 50. 0 SWX 40. 0 NYS E 0. 0 O T CB B -5. 3%
CM 1 OT CP K 78.3 AME X 36. 7 AM E X 29. 9 OT CN O -1. 0 TSX -14.3%
B SE 1 AM E X 73.3 BS E 26. 3 XT RA 28. 0 AI M -1. 8 BSE -23.5%
NYS E 1 H LS E 50.0 KLS E 24. 1 OT CP K 16. 5 TSX -3. 0 AM E X -36.4%
OS E 1 BS E 26.3 O TC B B 12. 4 AS X 7. 7 N a sdaqG M -8. 2 T S XV -39.0%
A IM 1 KLS E 24.1 AS X 9. 8 T S XV 6. 8 T S XV -8. 2 O T CP K -41.3%
OM 1 AS X 19.7 O TC P K 6. 5 HLS E 5. 9 HLS E -15. 2 O T CN O -50.6%
R TS 1 T S XV 18.8 AIM 4. 8 OT CB B 2. 1 BSE -27. 1 H LS E #DI V /0!
K LS E 1 AI M 4.8 TS X V 4. 7 OT CN O 2. 1 OT CP K -43. 4 NYS E #DI V /0!
O T C NO 1 OT CN O 0.1 O TC NO 0. 1 AI M 0. 3 OT CB B -48. 3 AI M #DI V /0!

G rand To tal 90 G rand T otal 52,911.1 G rand Total 587.9 G rand T otal 152.2 G r and T otal 2,786.9 G rand T otal 6.7%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 17

Fin an c in g - Las t Th ree Months (US $ m)

Mo nth Co mpany N ame C ou ntry A ngel/S eed Debt fin anc in g P IP E S eries A S eries B S eries C S eries D G ran d T otal
May-09 Facebook USA 200.0 200. 0
One Net Entertainment China 10.0 10. 0 20.0
Cyberplex Canada 12. 9 12.9
Peer39 USA 10. 5 10.5
OpenX UK 10. 0 10.0
Imeem USA 8.8 8. 8
EveryZing USA 8.3 8. 3
WonderHill USA 7. 0 7. 0
BlogHer Inc. USA 7.0 7. 0
Gist USA 6. 8 6. 8
Fuhu Inc. USA 6. 3 6. 3
Azuki Systems USA 6. 0 6. 0
I Love Rewards Canada 5. 9 5. 9
TimeBridge USA 5. 0 5. 0
OLX USA 5.0 5. 0
DocuSign USA 5.0 5. 0
Medialets USA 4.0 4. 0
Resonate Networks USA 2. 0 2. 0
Mo'Minis Israel 1. 5 1. 5
VoxPop USA 1. 5 1. 5
Loop'd Network USA 0.8 0. 8
May-09 T otal 13. 6 10.0 22. 9 2 3.3 18.7 40. 8 205.0 334. 1

J un -09 Sugar Inc. USA 16. 0 16.0

Tumri USA 15.0 15.0
Boku USA 13. 0 13.0
Wimba USA 12. 0 12.0
Grab Networks USA 12. 0 12.0
Goojet SAS France 8. 5 8. 5
AdMeld Inc. USA 8. 0 8. 0
beeTV USA 8. 0 8. 0
blueKiwi S oftware SA France 6. 5 6. 5
Nokeena USA 6. 5 6. 5
Sense Networks USA 6. 0 6. 0
Gather USA 5.3 5. 3
MojoPages USA 5. 0 5. 0
Taomee China 5.0 5. 0
Animoto USA 4. 4 4. 4
GameGround Israel 4.1 4. 1
RingRevenue USA 3. 5 3. 5
Crowdcast USA 3.0 3. 0
YuMe USA 2.9 2. 9
eRepublik Spain 2.8 2. 8
Newser LLC USA 2. 5 2. 5
ClickFuel USA 2. 5 2. 5
Inigral USA 2.4 2. 4
AdEx Media USA 2.3 2. 3
GROU.PS USA 2.1 2. 1
Yapta USA 2. 0 2. 0
OneTXT USA 2. 0 2. 0
my6sense Israel 2. 0 2. 0
I Love Rewards Canada 1. 8 1. 8
Cliqset USA 1.5 1. 5
AdWhirl USA 1.0 1. 0
LiquidPlanner USA 1.0 1. 0
Glubble Netherlands 1. 0 1. 0
Picaboo USA 1.0 1. 0
TodaCell Israel 1. 0 1. 0
MashLogic USA 0.5 0. 5
J un -09 T otal 39. 3 15. 3 1 8.5 67.8 34. 0 5.3 180. 1

J ul-09 StyleCaster USA 4. 0 4. 0

J ul-09 T otal 4. 0 4. 0

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 18

C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity

C ompany HQ W ebs ite Des criptio n
A dL ink Interne t Media A G G erma ny www.adlink.net AdL IN K Internet Media AG , through its s ubsidia ries , provides digital marketing solutions in E urope a nd interna tionally . The c ompany
specializ es in dis pla y , a ffiliate, permis s ion, direct, a nd doma in ma rketing. I ts D is pla y Mark eting segment provides online, direc t a nd dia logue-
based, and permiss ion/email ma rketing solutions. This s egment’s portfolio c omprises 4, 000 Web s ites with advertis ing env ironment for
regiona l, na tional, a nd internationa l c ampa igns. T he c ompa ny’s Affilia te Mark eting s egment opera tes as a brok er between a dvertis ers and
W eb s ite publis hers. This s egment a lso offers profess iona l cons ulta tion, promotion options, a nd works hops. A dLIN K I nternet Media ’s
Doma in Ma rk eting segment operates a trading platform for the doma in ma rket, a s wel l as a cts as a brok er between domain owners a nd
a dvertisers . T he c ompa ny was formerl y known as AdLI NK I nternet M edia G mbH E urope and cha nged its na me to AdL I NK Internet M edia AG
in 2000. AdLIN K I nternet Media wa s founded i n 1996 and is he a dquartered in M ontaba ur, G erma ny . AdLIN K Internet Media AG is a
subs idiary of U nited I nternet AG .
H i-Media S .A. F rance wwww.hi-media.com Hi-M edia S . A. opera tes as a n advertising ma na gement compa ny in France. I t ma rk ets advertising s pa ce to advertis ers on the Internet. T he
company als o offers a ra nge of s ervices to digital media publishers , including direc t ma rketing serv ices , which compris e direct marketing
me dia pla nning, email, ma il, S M S addres s es leasing, a nd implementing intera ctive TV ca mpa igns ; and micro-pa y ment tec hnical platform
a nd s ervic es . In a ddition, it provides serv ices for prospecting a nd ca nv ass ing of advertisers . H i-Media S .A. wa s founded by C yril
Zimmerman n in 1996. It was formerly k nown as H i-Media Multimedia a nd changed its na me to H i-Media S .A . in 2000. T he company is ba s ed
in P a ris , F ra nce.
S tyleCas ter U nited S ta tes www.stylecaster.com S ty leCa s ter M edia G roup, LL C provides online fa s hion-lifestyle information s ervi ces . The c ompany is ba sed in N ew Y ork , New Y ork .

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 19

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

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 ) .

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