SOFTWARE & SERVICES 9 MARCH 2010

David Shore, CFA, MBA 416.860.6784

WEB 2.0 WEEKLY dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652

Not Quite March Madness – But March 2010 Off To A Good Start
Capital Markets Activity – Moderate March
March Madness? Not quite, but a decent start to the month: Total transaction value in the Web 2.0 universe March-
to-date is $42.9 million. The number of financings stands at eight, averaging $5.4 million each. In comparison, total
capital raised in February was $204.1 million, averaging $8.2 million over 25 deals. January had $214.1 million,
averaging $9.3 million over 23 deals. December saw $450.4 million, averaging $12.9 million over 35 deals. November
saw $204.4 million, averaging $10.8 million (19 deals).

Financing Activity Last Twelve Months

500.0 16.0

450.0 13.9
14.0
12.9
400.0

12.0

350.0 10.8

9.3 10.0
300.0 9.0

8.2
(US$m)

(US$m)
250.0 8.0

6.8
6.5
6.2
200.0 5.8
5.6 6.0
5.4
4.7
150.0

4.0

100.0

2.0
50.0

0.0 0.0
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

*May-09 includes $200m FB investment Total Average

Dec-09 includes $180m Zynga investment

Deal round-up for March: The large deal highlights for the month include:

Saf-T-Net – developer of a suite for communicating with large audiences – was acquired by Blackboard for $33
million.

Adenyo – mobile ad network – raised $26.9 million.

DataXu – an online ad optimization and bidding platform – raised $11 million in a Series B financing.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
w w w . m a c k i e re s e a r c h . c o m

Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.218.6375 Regina 306.566.7550 St. Albert 780-460-6460
 Page 2

The Web 2.0 Universe

Ninety-seven public Web 2.0 companies: Our Web 2.0 universe contains 97 companies, with a combined market cap of
approximately $76 billion (Figure 1). The median market cap for the group is $49 million, with average trailing revenue
of $403 million (median $11.0 million). The companies are also generally profitable with a median EBITDA margin of
11.1%. On a valuation basis, the overall average is 5.1x trailing revenue (median 1.9x) and 10.5x trailing EBITDA
(median 8.7x). Ten 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 LTM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Tic ker E xchange C urrenc y HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize N ew Media, Inc. 9/30/2009 AC LZ OT C B B US D U nited S ta tes 0. 55 15. 8 4. 1 (1. 5) -36. 5% 5.0x - 11
Actoz S oft C o. , L td. 9/30/2009 A052790 K OS E KRW S outh K orea 15200. 00 118. 2 122. 1 27.1 22.2% 0.6x 2. 8x NA
AQ Intera ctive, Inc. 12/31/2009 3838 TSE JP Y J apan 158000. 00 95. 1 NM NM NM 1.1x - NA
As knet AG 9/30/2009 XT R A:A5A XT R A E UR G ermany 3. 23 22. 2 8, 434.3 (108. 6) -1.3% 0.1x - NA
As s ocia ted Media Holdings Inc. 6/30/2007 AS MH OT C P K US D U nited S ta tes 0. 01 0.4 0. 1 (2. 3) NM 12. 1x - 3
B eta wave C orporation 9/30/2009 B W AV OT C B B US D U nited S ta tes 0. 06 1.8 8. 4 (14.3) NM - - 48
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D U nited S ta tes 0. 02 1.3 13.5 (12.4) -91. 9% 1.0x - 86
B igs tring C orp. 9/30/2009 BS GC OT C B B US D U nited S ta tes 0. 02 1.4 0. 1 (1. 0) NM 37. 9x - 4
B right T hings plc 9/30/2009 AIM:B G T AIM GBP U nited K ingdom 0. 02 7.4 0. 1 (3. 4) NM 35. 6x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D U nited S ta tes 0. 04 3.4 0. 0 (4. 6) NM - - 46
C DC C orp. 9/30/2009 C HIN. A Na s daqG S US D H ong K ong 2. 70 286. 2 334. 2 20.0 6. 0% 0.8x 12.8x 2, 227
C hangyou.com Limited 12/31/2009 C Y OU Na s daqG S US D C hina 32. 63 1, 682.6 267. 6 167. 7 62.7% 5.4x 8. 7x NA
C hines e G amer International 9/30/2009 G T S M:3083 GTS M TWD T a iwa n 333. 50 877. 6 0. 0 (0. 1) NM 11. 5x 19.8x NA
C ody V entures C orporation 6/30/2007 CVCP OT C P K US D U nited S ta tes 0. 00 0.1 0. 1 (0. 1) NM 1.6x - NA
C ornerW orld C orporation 10/31/2009 CWR L OT C B B US D U nited S ta tes 0. 02 1.9 9. 2 NM NM 1.2x - 16
C yberplex Inc. 9/30/2009 T S X: C X TSX C AD C anada 0. 92 61. 7 2, 154.4 1, 250.2 58.0% 0.4x 3. 3x NA
DADA S pA 9/30/2009 C M: DA CM E UR Italy 5. 12 113. 1 12.5 NM NM 0.7x 6. 3x NA
DigitalP os t Interactive, Inc. 9/30/2009 DG L P OT C B B US D U nited S ta tes 0. 06 5.6 1. 2 (0. 9) -73. 8% 6.5x - 7
DigitalT own, Inc. 11/30/2009 DG T W OT C B B US D U nited S ta tes 1. 20 32. 9 0. 0 (1. 4) NM - - 3
Dolphin Digita l Media , Inc. 9/30/2009 DP DM OT C B B US D U nited S ta tes 0. 30 17. 1 0. 3 (4. 6) NM - - NA
DX N Holdings B hd 11/30/2009 DXN K LS E MY R Malays ia 0. 68 46. 0 34.5 3. 8 11.1% 0.8x 4. 0x NA
E n2G o Internationa l, Inc. 11/30/2009 E TGI OT C B B US D U nited S ta tes 0. 40 9.6 NM (1. 9) NM - - NA
Neurotech P ha rmaceuticals C o. , Ltd. 9/30/2009 A041060 K OS E KRW S outh K orea 415. 00 28. 3 0. 2 0. 0 18.7% 4.6x 9. 7x NA
eW orldC ompanies , Inc. 6/30/2008 EWR C OT C P K US D U nited S ta tes 0. 00 0.5 0. 0 NM NM 15. 8x - NA
F luid Mus ic C anada , Inc. 9/30/2009 T S X: F MN TSX C AD U nited S ta tes 1. 70 104. 3 5. 6 (3. 0) -54. 0% 17. 0x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FR G XT R A E UR G ermany 20. 17 70. 4 7. 6 (4. 1) -54. 0% 7.7x - NA
G amania Digital E ntertainment C o. , L td. 9/30/2009 6180 GTS M TWD T a iwa n 50. 60 243. 0 0. 2 (0. 1) -47. 0% 1.4x 8. 7x NA
G ameO n C o Ltd. 12/31/2009 3812 TSE JP Y J apan 73000. 00 78. 2 54.3 9. 0 16.5% 0.1x 0. 3x NA
G eoS entric O yj 9/30/2009 G E O 1V HL S E E UR F inland 0. 04 48. 9 9, 354.1 2, 179.9 23.3% 12. 0x - 118
G iant Interactive G roup, Inc. 12/31/2009 GA NY S E US D C hina 7. 38 1, 673.9 0. 5 (1. 9) NM - - NA
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T a iwa n 3. 31 180. 5 183. 6 NM NM 0.6x - 751
G ra vity C o., Ltd 9/30/2009 GR VY Na s daqG M US D S outh K orea 1. 99 55. 4 0. 2 NM NM - - 469
G ree, Inc. 12/31/2009 T S E :3632 TSE JP Y J apan 5700. 00 2, 854.4 660. 4 233. 8 35.4% 10. 2x 17.3x NA
G ungHo Online E ntertainment, Inc. 9/30/2009 3765 OS E JP Y J apan 212000. 00 269. 0 266. 6 156. 9 58.8% 1.9x 8. 6x NA
Ha nbitS oft, Inc. 9/30/2009 A047080 K OS E KRW S outh K orea 3825. 00 74. 0 9. 5 2. 1 22.3% 1.0x - NA
IAC /InterActiveC orp. 12/31/2009 IAC I Na s daqG S US D U nited S ta tes 23. 98 2, 795.1 1, 375.8 81.7 5. 9% 0.9x 14.5x NA
InternetArray, Inc. 12/31/2006 INAR OT C P K US D U nited S ta tes 0. 00 0.0 5. 9 (4. 0) -68. 6% 1.1x - NA
Is e B lu E quity C orp. 12/31/2006 IS B L OT C P K US D U nited S ta tes 0. 00 0.0 0. 0 NM NM 0.5x - NA
is eemedia Inc. 9/30/2009 IE E T S XV C AD C anada 0. 18 9.2 2. 0 (4. 3) NM 5.0x - NA
J umbuck E ntertainment Limited 12/31/2009 AS X: J MB AS X AU D Aus tralia 0. 25 11. 1 15.2 6. 6 43.4% 0.4x 0. 9x 79
K ent Internationa l H oldings Inc. 9/30/2009 K NT H OT C P K US D U nited S ta tes 1. 69 6.0 0. 0 (0. 4) NM - - NA
K ings oft C orpora tion Limited 9/30/2009 3888 S E HK HK D C hina 6. 56 928. 4 143. 4 57.7 40.2% 6.2x 15.4x 2, 271
K iwibox.C om, Inc. 9/30/2009 K IW B OT C B B US D U nited S ta tes 0. 02 6.6 0. 1 (2. 3) NM - - 14
Lingo Media C orpora tion 9/30/2009 T S XV : LM T S XV C AD C anada 0. 90 10. 9 1. 4 (2. 4) NM 7.6x - NA
LookS ma rt, L td. 9/30/2009 LOOK Na s daqG M US D U nited S ta tes 0. 96 16. 4 54.0 (4. 5) -8.4% - - 90
Mixi, Inc. 12/31/2009 2121 TSE JP Y J apan 566000. 00 968. 9 141. 8 43.0 30.3% 5.9x 19.5x NA
Mobile Data C orp. 10/31/2009 MB Y L OT C B B US D U nited S ta tes 0. 11 2.6 NM NM NM - - NA
Modern T imes G roup Mtg AB 12/31/2009 MT G B OM SEK S weden 428. 00 3, 963.5 1, 991.7 265. 6 13.3% 2.2x 16.6x NA
MOK O. mobi Limited 6/30/2009 MK B AS X AU D Aus tralia 0. 10 10. 8 0. 7 (2. 5) NM 13. 5x - NA
Multiplied Media C orporation 9/30/2009 T S XV : MMC T S XV C AD C anada 0. 27 34. 7 0. 2 (4. 9) NM - - NA
Myriad G roup AG 6/30/2009 MY R N SWX CHF S witzerland 4. 70 193. 4 63.0 3. 4 5. 4% 3.1x - 405
NE OW IZ G a mes C orpora tion 12/31/2008 A095660 K OS E KRW S outh K orea 33500. 00 623. 5 218. 4 58.6 26.8% 2.8x 10.5x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4. 48 305. 2 91.4 27.8 30.4% 1.7x 5. 6x 2, 426
Neteas e. com Inc. 12/31/2009 NT E S Na s daqG S US D C hina 39. 75 5, 148.5 550. 1 317. 3 57.7% - - NA
NeuLion Incorporated 9/30/2009 T S X: NL N TSX C AD C anada 0. 51 57. 9 24.9 (16.1) -64. 5% 1.6x - 237
NeXplore C orporation 9/30/2009 NXP C OT C P K US D U nited S ta tes 0. 60 33. 5 0. 5 NM NM - - NA
Ngi G roup Inc. 12/31/2009 2497 TSE JP Y J apan 45900. 00 63. 0 76.0 (1. 3) -1.7% 0.0x - NA
Northga te T echnologies L imited 9/30/2009 590057 BSE INR India 20. 95 16. 1 48.9 (52.5) NM 0.3x - NA
OAO R B C Informa tion S ys tems 12/31/2007 R BCI MIC E X R UB R us s ia 36. 78 171. 4 0. 0 (0. 3) NM 1.1x 8. 2x NA
Oriented Media G roup B erhad 9/30/2009 OME DIA K LS E MY R Malays ia 0. 21 8.2 NM NM NM 3.0x - NA
Open T ext C orp. 12/31/2009 OT E X Na s daqG S US D C anada 47. 83 2, 700.6 854. 6 230. 2 26.9% 3.2x 11.9x 3, 700
Openwave S ys tems Inc. 12/31/2009 OP W V Na s daqG S US D U nited S ta tes 2. 74 229. 5 192. 2 8. 6 4. 5% 0.6x 14.5x 590
T he P arent C ompa ny 8/2/2008 K IDS . Q OT C P K US D U nited S ta tes 0. 00 0.1 112. 0 (13.5) -12. 0% 0.2x - 347
P erfect W orld C o. , Ltd. 12/31/2009 PWR D Na s daqG S US D C hina 38. 68 1, 927.3 28.1 1. 3 4. 5% 0.2x 0. 3x NA
P N I Digital Media Inc. 12/31/2009 T S XV : P N T S XV C AD C anada 1. 68 55. 0 2, 084.1 1, 117.0 53.6% 2.0x 8. 2x NA
Quepas a C orp. 9/30/2009 QP S A OT C B B US D U nited S ta tes 3. 95 50. 4 0. 2 (9. 8) NM - - 74
R eal V alue E s tates , Inc. 11/30/2009 R V LU OT C B B US D Is ra el 1. 10 7.0 NM NM NM - - NA
S a hara Media H oldings , Inc. 9/30/2009 S H HD OT C B B US D U nited S ta tes 0. 30 9.3 0. 0 (4. 7) NM - - 15
S handa Interactive E nterta inment Ltd. 12/31/2009 S N DA Na s daqG S US D C hina 39. 74 2, 672.7 767. 4 333. 9 43.5% - - NA
S hutterfly, Inc. 12/31/2009 S FLY Na s daqG S US D U nited S ta tes 21. 41 554. 7 246. 4 32.6 13.2% 1.5x 11.5x 519
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KRW S outh K orea 13350. 00 493. 6 203. 0 13.2 6. 5% 2.4x 37.4x NA
S N AP Interactive, Inc. 9/30/2009 STVI OT C B B US D U nited S ta tes 0. 15 4.9 3. 4 0. 5 15.6% 1.0x 6. 3x 11
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D U nited S ta tes 0. 01 0.0 0. 1 (0. 1) -60. 6% 4.6x - NA
S ocialwis e, Inc. 12/31/2009 S C LW OT C B B US D U nited S ta tes 0. 61 29. 6 0. 0 (4. 7) NM - - NA
S ohu. com Inc. 12/31/2009 S OH U Na s daqG S US D C hina 53. 47 2, 019.4 515. 2 222. 8 43.2% 3.0x 6. 8x NA
S park N etworks , Inc. 9/30/2009 LOV AME X US D U nited S ta tes 3. 38 69. 6 47.5 10.0 21.0% 1.4x 6. 6x 183
S pectrumDN A, Inc. 9/30/2009 S P XA OT C B B US D U nited S ta tes 0. 11 5.4 0. 1 (2. 5) NM 38. 2x - 7
S prylogics Interna tional C orp 10/31/2009 T S XV : S P Y T S XV C AD C anada 0. 04 1.0 0. 4 (0. 2) -50. 0% 2.2x - NA
T encent Holdings Ltd. 9/30/2009 700 S E HK HK D C hina 160. 80 37,817. 8 1, 588.6 811. 4 51.1% 26. 2x - 6, 194
T he9 L imited 3/31/2009 NC T Y Na s daqG S US D C hina 7. 24 181. 8 248. 7 65.6 26.4% - - 1, 626
T heS treet. com, Inc. 9/30/2009 TS CM Na s daqG M US D U nited S ta tes 3. 75 118. 3 61.1 1. 7 2. 8% 0.9x 32.0x 310
T ree.C om, Inc. 12/31/2009 TR E E Na s daqG M US D U nited S ta tes 8. 80 97. 3 216. 8 9. 2 4. 2% 0.4x 9. 8x NA
Unila va C orporation 12/31/2008 UNL A OT C B B US D U nited S ta tes 0. 33 33. 0 5. 3 (1. 0) -18. 1% 6.3x - 39
Unis erve C ommunications C orp. 11/30/2009 T S XV : US S T S XV C AD C anada 0. 10 2.3 5. 1 (0. 9) -18. 1% 0.5x 8. 6x NA
United O nline, Inc. 12/31/2009 UNT D Na s daqG S US D U nited S ta tes 7. 08 601. 6 990. 1 204. 1 20.6% 0.8x 4. 0x 1, 699
UOMO Media, Inc 10/31/2009 UOMO OT C B B US D C anada 0. 04 3.3 1. 0 (0. 4) -42. 2% 3.9x - NA
V a lueC lick, Inc. 12/31/2009 V C LK Na s daqG S US D U nited S ta tes 10. 15 847. 8 422. 7 116. 1 27.5% 1.6x 5. 9x NA
V elti P lc 6/30/2009 VE L AIM GBP U nited K ingdom 3. 42 193. 2 79.3 16.3 20.5% 2.3x 11.3x 450
V O IS , Inc. 12/31/2009 V OIS OT C B B US D U nited S ta tes 0. 01 8.7 0. 0 (1. 4) NM - - 2
W ebzen Inc. 12/31/2009 K OS E :A069080 K OS E KRW S outh K orea 11850. 00 123. 9 24.5 (0. 8) -3.2% 2.5x - NA
W e-R -Y ou C orp. 9/30/2007 WER U OT C P K US D U nited S ta tes 0. 01 0.3 0. 6 (0. 2) -29. 1% 0.6x - NA
W izzard S oftware C orporation 9/30/2009 W ZE AME X US D U nited S ta tes 0. 30 16. 2 5. 2 (3. 9) -76. 4% 3.4x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D U nited S ta tes 0. 25 13. 4 0. 1 (0. 6) NM - - 1
W ynds torm C orporation NA W Y ND OT C P K US D U nited S ta tes 0. 05 0.9 NA NM NM - - NA
XIN G AG 9/30/2009 O1B C XT R A E UR G ermany 29. 60 209. 4 58.1 15.7 27.0% 2.7x 10.0x 266
Y D Online C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 6150. 00 81. 4 60.5 13.0 21.6% 1.5x 6. 8x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KRW S outh K orea 2750. 00 19. 4 12.6 1. 3 10.5% 1.5x 13.9x NA
High 37,817. 8 9, 354. 1 2, 179. 9 62.7% 38. 2x 37.4x 6, 194
Low 0.0 0. 0 -108. 6 -91. 9% 0.0x 0. 3x 1
Average 810.3 402.8 95.1 2.9% 5.1x 10.5x 646
Median 48. 9 11.0 -0. 2 11.1% 1.9x 8. 7x 90

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

Capital Markets Activity (M&A and Financing)

March Madness? Not quite, but a decent start to the month: Total transaction value in the Web 2.0 universe March-to-
date is $42.9 million. The number of financings stands at eight, averaging $5.4 million each. In comparison, total capital
raised in February was $204.1 million, averaging $8.2 million over 25 deals. January had $214.1 million, averaging $9.3
million over 23 deals. December saw $450.4 million, averaging $12.9 million over 35 deals. November saw $204.4
million, averaging $10.8 million (19 deals).

Financing Activity Last Twelve Months

500.0 16.0

450.0 13.9
14.0
12.9
400.0

12.0

350.0 10.8

9.3 10.0
300.0 9.0

8.2
(US$m)

(US$m)
250.0 8.0

6.8
6.5
6.2
200.0 5.8
5.6 6.0
5.4

4.7
150.0

4.0

100.0

2.0
50.0

0.0 0.0
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

*May-09 includes $200m FB investment Total Average

Dec-09 includes $180m Zynga investment

Figure 2. Financings, Last Twelve Months

Source. Company reports






(US$m)

0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Mochi Media
Qiyi
Aardvark
Glam Media
StudioNow

Source. Company reports

Saf-T-Net
Quantcast
Adenyo
Paymo
Ngmoco
Yelp
Visible
Blue Kai

23 and 24 (at end of note).

WebVisible
Ustream
Guvera
6 Waves
TidalTV

Figure 3. Capital Market Activity, Last Three Months

Spiceworks
Rent the Runway
Avvasi
Flixster
SMSGupShup
DataXu
BrightRoll
Yodle
Yammer
MOG
NetBase
Aggregate
Currensee
AdMarvel
TripIt
Flurry
TuneWiki
SeaWell Networks
Adenyo – mobile ad network – raised $26.9 million.

Vivox
Moonshoot
Fynanaz
Pursway
Everyscape
BuyWithMe
Gaikai
Living Social
Cozi
PeerPong
Apisphere
Posterous
Eyeka
Effective Measure
NuConomy
Deal round-up for March: The large deal highlights for the month include:

DubMeNow
Scrapblog
Beezag
Cognitive Match
Vook
Reframe It
Smartdate
Sway
Financing & M/A Summary - Last Three Months

Jelli
Smilebox
Prosper.com
OneForty
Blippy
Bit.ly
KODA
Echo Nest
Graphic.ly
ThisNext
Moblyng
Cardigan Networks
XIHA
Backupify
SocialGO
Ranker
Joonto
DataXu – an online ad optimization and bidding platform – raised $11 million in a Series B financing.

AppsFire
Serious Business
Stylehive
Drimmi
AppVee
Decision Maker
Stylefeeder
Page 4

All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures

Jan-10
Mar-10
Feb-10
Saf-T-Net – developer of a suite for communicating with large audiences – was acquired by Blackboard for $33 million.
 Page 5

Advertising picks up momentum: In the past three months, Advertising has garnered the most deal flow with eight
financings. The Social Networks space comes in second place with seven financings – remaining one of the top sectors
for attracting early-stage investment in recent months. The $400 million acquisition of Playfish skews the Gaming
segment to the highest total financing value (Figure 4).

Capital Market Activity by Sector - Last Three Months

300.0

250.0

200.0
(US$m)

150.0

100.0

50.0

258.6 257.1 179.0 131.0 127.2 125.9 107.4 79.6 69.8 58.6 50.8 50.0 33.0 32.0 30.0 27.5 14.0 13.6 13.4 13.2 12.0 10.0 9.2 8.8
0.0
Mobile Payment

Social Commerce
Internet Retail
Gaming

Online Calendar
Travel
Mobile

Media

Enterprise

Microblog

Online Learning
Music

Financial Services
Search

Mobile Ad

SMS/Voice

Location-based

Blog
Social Networks
Video

Advertising

Crowdsourced

Virtual World
Analytics

Content

SNS
# companies
5 5 8 6 4 5 3 5 2 2 7 1 3 1 1 3 1 1 2 1 1 1 1 1

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

Source. Company reports
 Page 6

Capital Markets Activity (Price Performance)

Web 2.0 index continues to outpace NASDAQ recovery: Our Web 2.0 index (market-cap weighted) has positively
diverged from the broader tech market (represented by the Nasdaq Composite Index) since Q1/09 (Figure 5).

Web 2.0 Index Price Performance

300

250

200

150

100

50

0
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

7/27/2009

8/10/2009

8/24/2009

9/7/2009

9/21/2009

10/5/2009

10/19/2009

11/2/2009

11/16/2009

11/30/2009

12/14/2009

12/28/2009

1/11/2010

1/25/2010

2/8/2010

2/22/2010
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Bullish week for Web 2.0: Twenty-nine companies in our universe had positive stock price performances (averaging
+6.1%) over the past week (for stocks with prices greater than $1) (Figure 6), while 20 companies showed negative 1-
week returns (averaging -3.7%).

1 Week P rice P erformance

S park Netw orks , Inc. 14.6%
A Q Interactive, Inc. 14.5%
G igaMedia Ltd. 14.1%
United Online, Inc. 10.8%
Chines e G amer International 8.6%
CDC Corp. 8.4%
TheS treet.c om, Inc. 8.1%
Perf ect World Co., Ltd. 7.8%
X ING A G 7.3%
Northgate Technologies Limited 6.9%
G ameOn Co Ltd. 6.6%
Ngi G roup Inc. 6.0%
S hutterf ly , Inc. 5.8%
G amania Digital Entertainment Co., Ltd. 5.6%
A ctoz S oft Co., Ltd. 5.6%
Modern Times G roup Mtg A B 5.3%
DA DA S pA 4.9%
S ohu.com Inc. 4.4%
V alueClick, Inc. 4.2%
IA C/InterA ctiveCorp. 3.9%
V elti Plc 3.8%
Neteas e.com Inc. 3.8%
Tencent Holdings Ltd. 3.7%
The9 Limited 3.3%
Tree.Com, Inc. 2.6%
Openw ave S y s tems Inc. 2.2%
HanbitS oft, Inc. 1.7%
Frogs ter Interactive Pictures A G 0.8%
G ree, Inc. 0.2%
My riad G roup A G 0.0%
K ings of t Corporation Limited -0.6%
Open Tex t Corp. -1.0%
Changy ou.com Limited -1.0%
Quepas a Corp. -1.0%
Y nk K orea Inc. -1.6%
Fluid Mus ic Canada, Inc. -1.7%
NEOWIZ G ames Corporation -1.8%
S handa Interactive Entertainment Ltd. -1.9%
G ravity Co., Ltd -2.4%
G iant Interactive G roup, Inc. -2.5%
NetDragon WebS oft, Inc. -2.6%
Mix i, Inc. -3.1%
G ungHo Online Entertainment, Inc. -3.2%
PNI Digital Media Inc. -4.0%
DigitalTow n, Inc. -4.0%
Y D Online Corp. -6.7%
Webz en Inc. -7.4%
Neurotech Pha rmaceuticals Co., Ltd. -8.8%
A s knet A G -9.0%
S K Communica tions Co., Ltd. -10.1%
-0.15 -0.1 -0.05 0 0.05 0.1 0.15 0.2

Figure 6. 1-Week Price Performance

Source. Capital IQ

Public Company Industry News (Partnerships, Financial Results, New Products)
K ey Developments
C ompany
S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
K iwibox.C om, Inc. (OTC B B : K IW B )
P erfec t World C o., L td.
(Nas daqG S : P WR D)
Open Text C orp. (Nas daqG S : OTE X)
is eemedia Inc . (TS XV: IE E )
S park Networks , Inc . (AME X: L OV)
Figure 7a. Key Developments
Source. Capital IQ
Headline
S ha nda Intera ctive E ntertainment Ltd. R eports
Una udited C ons olida ted E a rnings R es ults for
the F ourth Q ua rter and F ull Y ea r E nded
December 31 2009
Ma gnitude Information S ys tems Inc. will
C ha nge its T icker to K IW B from MAG Y
P erfect W orld C o. , L td. R eports Una udited
C ons olida ted E arnings R es ults for the F ourth
Q ua rter a nd F ull Y ea r E nded December 31,
2009; P rovides R evenue G uidance for the F irs t
Q ua rter of F is ca l 2010
O pen T ext C orp Delivers E xtens ible, S imple-
T o-Deploy F a x over Internet S olution
is eemedia Inc. Announces Una udited
C ons olida ted E arnings R es ults for the S econd
Q ua rter a nd S ix Months E nded December 31,
2009
S pa rk Networks , Inc. Announces F ormation of S pa rk Networks , Inc. a nnounced tha t its boa rd of directors has formed a s pecia l committee of independent directors to
S pecial C ommittee to E va lua te Acquis ition cons ider a propos al by G rea t Hill P a rtners III, LP to purcha s e a ll of the outs ta nding s ha res of common s tock of the
P ropos al C ompa ny not owned by G rea t Hill, a t a ca s h purchas e price of $3. 10 per s ha re, a nd other pos s ible bus ines s combina tion
tra ns a ctions . T he members of the S pecia l C ommittee a re J ona than B ulkeley, B enja min Derhy a nd T om S tockha m, ea ch of
whom is independent under the NY S E -Amex independence rules . T he propos al is s ubject to the a pprova l of the S pecia l
C ommittee, the S pa rk Networks boa rd of directors a nd the company's s tockholders .
Page 8
Notes
S ha nda Intera ctive E nterta inment L td. reported una udited cons olida ted earnings res ults for the fourth qua rter and full year
ended December 31 2009. C ons olidated net revenues increas ed 49% yea r-over-yea r and 9% qua rter-over-qua rter to C NY
1, 513. 5 million (US D 221. 6 million). Non-G AAP opera ting income increa s ed 43% yea r-over-yea r and 3% qua rter-over-
qua rter to C NY 612. 2 million (US D 89. 6 million). Non-G AAP net income a ttributable to ordina ry s ha reholders increas ed
24% yea r-over-yea r and decrea s ed 19% qua rter-over-quarter to C NY 422. 0 million (US D 61. 8 million). Non-G AAP ea rnings
per diluted ADS were C NY 6. 06 (US D 0. 88), compared with C NY 4. 90 in the fourth quarter of 2008 a nd C NY 7. 40 in the
third qua rter of 2009. O pera ting income for the fourth qua rter of 2009 wa s C NY 559. 5 million (US D 81. 9 million), a n
increa s e of 35% from C NY 413. 1 million in the fourth qua rter of 2008 a nd a n increa s e of 10% from C NY 510. 7 million in the
third qua rter of 2009. O pera ting ma rgin was 37. 0% in the fourth quarter of 2009, compa red with 40. 7% in the fourth qua rter
of 2008 and 36. 9% in the third qua rter of 2009. Non-G AAP opera ting margin was 40. 4% in the fourth qua rter of 2009, compa red with
in the third qua rter of 2009. Net income a ttributa ble to ordinary s hareholders for the fourth qua rter of 2009 wa s
C NY 369. 3 million (US D 54. 1 million), a n increa s e of 13% from C NY 326. 5 million in the fourth qua rter of 2008 a nd a
decrea s e of 15% from C NY 435. 3 million in the third qua rter of 2009. E arnings per diluted ADS in the fourth qua rter
of 2009 were C NY 5. 30 (US D 0. 78), compared with C NY 4. 70 in the fourth quarter of 2008 a nd C NY 6. 18 in the third
qua rter of 2009. T he qua rter-over-quarter difference wa s prima rily due to the difference in net income a ttributa ble to
non-controlling interes ts between the fourth qua rter in 2009 and the third quarter in 2009. Income before income tax
expens es , equity in ea rning of a ffilia tes wa s C NY 642. 0 million aga ins t C NY 422. 5 million for the s a me quarter a year
ago period.
E ffective Ma rch 02, 2010, Ma gnitude Informa tion S ys tems Inc. will change its O T C B B s tock ticker s ymbol to K IW B from
MAG Y .
P erfect W orld C o. , L td. reported una udited cons olida ted ea rnings res ults for the fourth quarter a nd full year ended
December 31, 2009. F or the qua rter, the compa ny's total revenues were R MB 607. 9 million (US D 89. 1 million), a n increa s e
of 3. 0% , or R MB 17. 9 million, from R MB 590. 0 million in third qua rter 2009, a nd a n increa s e of 45. 5% , or R MB 190. 1
million, from R MB 417. 8 million in fourth qua rter 2008. O perating profit wa s R MB 276. 5 million (US D 40. 5 million), a s
compa red to R MB 297. 7 million in third qua rter of 2009 and R MB 149. 5 million in fourth qua rter of 2008. Non-G AAP
opera ting profit was R MB 298. 5 million (US D 43. 7 million), as compa red to R MB 317. 9 million in third qua rter 2009 a nd
R MB 244. 7 million in fourth qua rter 2008. Net income a ttributa ble to the compa ny's s hareholders was R MB 270. 8 million
(US D39. 7 million), as compared to R MB 288. 3 million in third quarter 2009 a nd R MB 124. 8 million in fourth qua rter 2008.
Non-G AAP net income attributa ble to the compa ny's s hareholders was R MB 292. 8 million (US D 42. 9 million), as compa red
to R MB 308. 5 million in third quarter 2009 a nd R MB 220. 0 million in fourth quarter 2008. B a s ic a nd diluted earnings per ADS
as compa red to R MB 5. 83 and R MB 5. 50, res pectively, in third qua rter 2009 and R MB 2. 22 a nd R MB 2. 12,
res pectively, in fourth quarter 2008. Non-G AAP ba s ic a nd diluted earnings per ADS were R M B 5. 88 (US D0. 86) a nd
R MB 5. 50 (US D 0. 81), res pectively, as compared to R MB 6. 24 a nd R MB 5. 88, res pectively, in third qua rter 2009, a nd
R MB 3. 91 a nd R MB 3. 74, res pectively, in fourth qua rter 2008. P rofit before ta x wa s R MB 288. 3 million compa red to
R MB 158. 4 million for the fourth quadra te of 2008. Net ea rnings per diluted s ha re were R MB 1. 02 compa red to R MB
0. 42 per s ha re for the s a me quarter a year a go. Net ca s h provided by opera ting activa tes wa s R MB 376. 6 million
compa red to R MB 279. 4 million for the s a me qua rter a yea r ago. P urcha s e of inta ngible a s s ets was R MB 4. 8 million
compa red to R MB 1. 4 million for the s a me qua rter a yea r a go.
B a s ed on the company's current opera tions , tota l revenues for the firs t quarter of 2010 are expected to be between
R MB 620 million a nd R MB 644 million, repres enting a n increa s e of 2% to 6% on a s equentia l ba s is a nd a n increa s e
of 46% to 51% on a year-over-yea r bas is . T his reflects expected growth from the compa ny's exis ting games .
Open T ext C orp. announced a complete range of fax ga tewa ys tha t give orga nizations of a ll s izes a s ingle s ource for a ll
their fa x over IP (F oIP ) needs . E as y to implement, the new O pen T ext F a x G atewa y s olutions a re des igned to help
cus tomers lower tota l cos t of owners hip (T C O ) by cons olida ting voice a nd da ta network equipment for fa x. F oIP
implementa tions can ha ve ma ny va ria bles , es pecially in la rger a nd more complex networks . O ne of the more cha llenging
as pects is figuring out how to properly configure, tes t and optimize a genera l-purpos e media ga teway to a ct a s a fa x
ga tewa y. B y offering purpos e-built fax ga tewa ys , optimized to work with the O pen T ext F a x S erver, O pen T ext elimina tes
this complexity while giving cus tomers a nd pa rtners a s ingle s ource for s ervice a nd s upport. O pen T ext is the ma rket leader
in enterpris e fa x s olutions offered with integra tion to the comprehens ive ma na gement ca pabilities a va ila ble in the O pen T ext
E C M S uite. C ommunica tions networks in ma ny orga nizations are often intermixed with circuit-s witched (telephony) and
pa cket-s witched (IP ) technologies . O pen T ext F a x G a teway s erves a s the bridge between thes e two divergent technologies and s im
communica tions - fa x T . 30 s igna ls a nd T DM protocols - to s ta nda rds -bas ed S IP a nd T . 38. As a res ult, O pen T ext
F a x G a teway lets cus tomers leverage data networks for fa x trans mis s ions , which can grea tly reduce the cos ts of
ma naging fa x-bas ed communications -s omething tha t becomes es pecia lly importa nt for bus ines s proces s es that
depend on ma s s fa xing. B a s ed on a highly s calable a nd relia ble architecture, O pen T ext F a x G a tewa y facilitates
network cons olida tion, boos ts fault tolera nce and encoura ges virtua liza tion of O pen T ext F ax S erver to help further
reduce T C O . In a ddition, extens ive compatibility tes ting ens ures wide-ranging s upport for a nd interopera bility with
dozens of telephony a nd IP devices .
is eemedia Inc. a nnounced una udited cons olida ted ea rnings res ults for the s econd qua rter a nd s ix months ended December
31, 2009. F or the quarter, the compa ny's revenues were C AD 876, 690 a ga ins t C AD 515, 202 a yea r ago. L os s before
interes t ea rned was C AD 528, 402 a gains t C AD 1, 610, 542 a yea r ago. Net los s a nd comprehens ive los s was C AD 528, 245
or C AD 0. 01 per bas ic and diluted s hare aga ins t C AD 1, 593, 953 or C AD 0. 03 per ba s ic a nd diluted s ha re a yea r ago. C a s h
us ed in opera ting activities wa s C AD 916, 533 aga ins t C AD 1, 345, 769 a year a go. P urcha s es of property a nd equipment
were amounted to C AD 1, 656 a ga ins t C AD 23, 121 a year a go.

K ey Developments
C ompany
S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
S park Networks , Inc . (AME X: L OV)
K iwibox.C om, Inc. (OTC B B : K IW B )
Open Text C orp. (Nas daqG S : OTE X)
Openwave S ys tems Inc .
(Nas daqG S : OP WV)
NeuL ion Inc orporated (TS X: NL N)
Unilava C orporation (OTC B B : UNL A)
As ias oft C orporation P ublic C ompany K ings oft C orporation L imited’s Internet
L imited (S E T: AS ); K ings oft C orporation S ecurity S oftwa re to T eam Up with As ias oft
L imited (S E HK : 3888)
ValueC lick, Inc . (Nas daqG S : VC L K )
MOK O.mobi L imited (AS X: MK B );
Orange S A
C DC C orp. (Nas daqG S : C HIN.A)
Figure 7b. Key Developments
Source. Capital IQ
Headline
S ha nda Intera ctive P la ns to Move into T ra vel
F ield in C hina
S ha nda Intera ctive Mulls Acquis itions
G rea t Hill P artners , LL C , through its fund G rea t
Hill E quity P artners III, L. P . , made an offer to
a cquire remaining 55. 8% s ta ke in S park
Networks , Inc. (AME X: LO V ) from inves tors for
$35. 6 million.
Ma gnitude Information S ys tems Inc. ha s
C ha nged its Na me to K iwibox. C om, Inc
O pen T ext In Acquis ition T a lks
O penwa ve S ys tems Inc. Appoints Anne
B renna n as C hief F ina ncial O fficer E ffective
April 1, 2010 in the P la ce of K a ren W illem
NeuL ion and S V T W orld Announce New
P artners hip a nd Debut of Dedicated T elevis ion
S ervice for the S wedis h C ommunity in the U. S .
a nd C a na da
Unila va Introduces V INC E Unlimited Hos ted
V oip a nd S ip T runking for B us ines s
C orporation P ublic C ompany Limited
V alueC lick, Inc. P res ents at U. S . T echnology,
Media & T elecom C onference 2010, Ma r-03-
2010
MO K O . mobi L imited S igns C ontract with
O ra nge in UK
C DC G ames B egins C los ed B eta T es ting of Its C DC G a mes , a bus ines s unit of C DC C orp. a nnounced it ha s begun clos ed beta tes ting of a new local ga me in C hina called
L ates t New L ocal G a me
Page 9
Notes
S ha nda Intera ctive E nterta inment L td. is devis ing a pla n to move into the tra ditiona l travel field in C hina . S ha nda a ims to
expa nd its enterta inment territories this time. Its tra vel bus ines s will be compos ed of two parts , a to-be-es ta blis hed online
tra vel community leveraging other platform res ources s uch a s online games , litera ture, mus ic, movies , a nd telepla ys , a s
well a s a n offline travel pla tform res pons ible for travel a ctivities .
S ha nda Intera ctive E nterta inment L td. pla ns to focus on integra ting its different media pla tforms while looking for pos s ible
acquis itions this yea r. C hen T ia nqia o, C hief E xecutive Officer of the firm s a id, “W e will put mos t of our energy on bus ines s
integra tion this yea r and mea nwhile, s eize potentia l a cquis ition opportunities if a ny. ”
G reat Hill P a rtners , L L C , through its fund G reat Hill E quity P artners III, L. P . , made an offer to a cquire remaining 55. 8%
s ta ke in S park Networks , Inc. (AME X: L O V ) from inves tors for $35. 6 million in ca s h on Ma rch 2, 2010. T he offer per s ha re
is $3. 1. At clos ing, S pa rk will cea s e to be a publicly traded compa ny. S pa rk granted a partia l wa iver of a s ta nds till
agreement with G reat Hill to an extent neces s a ry to a llow a s pecia l committee to negotia te the propos a l with G rea t Hill. .
T he S pa rk B oa rd formed a s pecia l committee of independent Directors which cons is t of J ona tha n B ulkeley, B enja min
Derhy, a nd T om S tockha m.
T he wa iver will a utoma tica lly termina te if S pa rk B oa rd or the s pecia l committee decides to dis continue dis cus s ions with
G reat Hill. T he propos al is s ubject to the a pprova l of the s pecia l committee a nd S park B oa rd of Directors and a doption of
the merger a greement by ma jority S park s hareholders , execution of definitive a greement, receipt of s ufficient fina ncing to
pa y the total purchas e price, receipt of corporate, governmenta l, third pa rty approvals , contractual a pprovals a nd
confirma tion by the s pecia l committee of a pproving the agreement.
On Ma rch 02, 2010, Ma gnitude Information S ys tems Inc. cha nged its name to K iwibox. C om Inc.
J ohn S hackleton, C hief of O pen T ext C orp. is holding ta lks with s ix Aus tra lia n cons ulta ncy partners with a view to a cquiring
at leas t one. He s a id, “W e'll be looking a t everything from pa rtnering to doing a cquis itions to help us [rea ch tha t goal]. W e
need to grow this region a nd we think the economy is s uch that this is a good time to grow. ” He s aid tha t he is holding ta lks
with “ha lf a dozen” cons ulta ncies with experience in document a nd records ma na gement a nd “our technology. ” Mr.
S ha ckleton did not believe that acquiring s ome of its top local partners would have a nega tive impa ct on growth pla ns by
reducing the rea ch of the cha nnel. He s a id, “If there's a conflict we wouldn't [a cquire them]. ”
Openwave S ys tems Inc. announced the appointment of Anne B renna n as chief financial officer. B renna n repla ces K a ren
W illem, who res igned from the compa ny effective Ma rch 31, 2010. B rennan mos t recently s erved a s the compa ny's vice
pres ident of finance, and a ls o s erved a s the company's interim C F O in ea rly 2008. E ffective April 1, B renna n will become
the company's C F O a nd report to O penwave C E O K en Denma n.
NeuLion Incorporated a nd S V T W orld, a n interna tiona l televis ion channel from S veriges T elevis ion, a nnounced a new
pa rtners hip and debut of a dedicated televis ion s ervice for the S wedis h community in the U. S . a nd C ana da . B y partnering
with NeuL ion, S V T now provides a S wedis h televis ion s ervice to the homes in a previous ly untapped ma rket through its
IP T V s ervice. NeuL ion delivers a n end-to-end s ervice for S V T a nd this is the firs t time S V T will be ava ila ble in North
America as a linear broadcas t. W ith a pproxima tely 185 interna tiona l televis ion channels in a pproxima tely 55 countries ,
NeuLion offers a globa l a udience the a bility to s ta y connected through its multi-pla tform IP T V s ervice. B y us ing a n Internet
connection, NeuLion's IP T V s ervice cos ts les s tha n other providers and a llows its pa rtners to get to market quicker a nd
reach to more homes . S V T pla ns to s oon expa nd its s ervice with NeuL ion to other continents .
Unilava C orporation a nnounced the launch of V INC E Unlimited Hos ted V oIP (V oice over Internet P rotocol) for bus ines s
cus tomers . Unilava 's bra nd V INC E , V oice over Internet Network C ommunication E volution, provides true plug-a nd-play
bus ines s -gra de V oIP a nd a fforda ble unlimited calling plans with complete fea ture-rich, high-definition IP voice, fax and
conference. V INC E Unlimited P lans are ta ilored for S MB a nd E nterpris e bus ines s cus tomers with acros s -the-board
advance ma intena nce s upport. B as ic Unlimited P la n includes unlimited loca l a nd long dis ta nce a nywhere in the U. S . ,
C a nada , Mexico, P uerto R ico a nd U. S . V irgin Is la nds for only $29. 95/month per line a nd $7. 95/month per extens ion. Add an
additional $5. 00/month for P remium Unlimited Interna tiona l ca lls to 16 countries , including Hong K ong, C hina , F rance, Ita ly,
United K ingdom and more.
K ings oft C orpora tion L imited announced that its Internet s ecurity unit will cooperate with As ia s oft C orporation P ublic
C ompa ny Limited in a n a ttempt to la unch the T ha i-la nguage vers ion of Duba s ecurity s oftwa re a nd ma ke inroa ds into the
T ha ila nd ma rket. K ings oft will be res pons ible for s oftwa re a nd technology a nd As ias oft will be in cha rge of the s a le of the
T ha i-la ngua ge vers ion s ecurity s oftwa re.
V a lueC lick, Inc. P res ents a t U. S . T echnology, Media & T elecom C onference 2010, Mar-03-2010. V enue: P alace Hotel, 2
New Montgomery S treet, S a n F ra ncis co, C a lifornia , United S ta tes .
MO K O . mobi Ltd. has s igned a n a greement with O range. MO K O . mobi will be launched with zero ra ted da ta , MMS and
premium activity billing and featured on the O ra nge content portal. MO K O . mobi will ma na ge all the billing a nd MMS
functiona lity. T echnical and product integra tion is s cheduled to begin immedia tely, with an a nticipated la unch da te in la te
April, a nd revenue is expected to flow in the ens uing two to three months .
E a s t F a nta s y, one of two loca l ga mes planned for la unch in the firs t half of 2010. Developed by C hengdu B L Intera ctive Net
C o. , E a s t F anta s y is a ca rtoon type 3D ma s s ive multipla yer online a ction role playing game (MMOAR P G ) fea turing a
humorous s tory line, s ix characters , a nd voiceovers from prominent voiceover a ctors who a ls o provide voices for well known
anime chara cters like Naruto, a popular J apa nes e ma nga s eries . E a s t F a ntas y ha s an a dva nced comic/a nime s tyle of
pres enta tion; in-ga me cut s cenes , dialogs and s ound effects tha t s et it apa rt from other ga mes . P la yers can either us e a
controller or keyboa rd to pla y the ga me a nd ca n join teams of four to go on mis s ions together. T he ga me fea tures pla yer
vers us pla yer (P vP ) in three modes , tea m contes t, team death ma tch a nd s urvival mode. E as t F anta s y is a lrea dy opera ted
by other compa nies in the Hong K ong a nd T a iwa n markets . C DC G a mes pla ns to conduct a s econd clos ed beta tes t in mid
March for E a s t F anta s y with commercia l
launch pla nned for la ter this month.

K ey Developments
C ompany
W izzard S oftware C orporation
(AME X: WZE )
S park Networks , Inc . (AME X: L OV)
G iant Interactive G roup, Inc .
(NYS E : G A)
VOIS , Inc . (OTC B B : VOIS )
S prylogic s International C orp
(TS XV: S PY)
TheS treet.c om, Inc . (Nas daqG M: TS C M) T heS treet. C om Announces Q ua rterly Dividend T heS treet. com, Inc. announced that its boa rd of directors has decla red the compa ny's quarterly cas h dividend on its
C DC C orp. (Nas daqG S : C HIN.A)
Figure 7c. Key Developments
Source. Capital IQ
Headline
W izza rd S oftwa re C orporation Announces
Acquis ition of E xclus ive Dis tribution R ights to
G os s ip J unkie
S pa rk Networks , Inc. R eports Una udited
C ons olida ted E arnings R es ults for the F ourth
Q ua rter a nd F ull Y ea r E nded December 31,
2009; Announces Impa irment of G oodwill
G ia nt Intera ctive G roup, Inc. R eports
Una udited C ons olida ted E a rnings R es ults for
the F ourth Q ua rter and Y ea r E nded December
31, 2009
V OIS , Inc. Appoints Mr. Ha l C ompton to Its
B oa rd of Directors
S prylogics Interna tional C orp, Annual G enera l S prylogics Interna tiona l C orp, Annua l G enera l Meeting, Ma r 05, 2010
Meeting, Mar 05, 2010
P aya ble on Ma rch 31, 2010 common s tock. T he ca s h dividend of $0. 025 per s hare of common s tock will be paya ble on Ma rch 31, 2010, to all
s hareholders of record a t the clos e of bus ines s on Ma rch 15, 2010.
C DC C orp. Announces Una udited
C ons olida ted E arnings R es ults for the F ourth
Q ua rter a nd F ull Y ea r E nded December 31,
2009; P rovides E a rnings G uida nce for the
Y ea r 2010
Page 10
Notes
W izzard S oftwa re C orpora tion a nnounced the a cquis ition of exclus ive dis tribution rights to G os s ip J unkie, the number one
celebrity gos s ip App in the App S tore. G os s ip J unkie is currently for s ale through the App S tore for us e on the iP hone(R )
and iP od(R ) T ouch. Adding to its growing ros ter of premium iP hone Apps , W izzard Media a cquired the rights to this highly
rega rded App from iP hone E Z Apps ba s ed s olely on its future s a les potential a nd ta rgeta bility through W izza rd's podca s t
ma rketing a nd dis tribution network. Ma rketing efforts for G os s ip J unkie will ta rget fema le audiences through comedy,
enterta inment, mus ic, lifes tyle a nd fa s hion podca s ts on the W izza rd Media Network. W izza rd has focus ed its recent App
acquis ition efforts on qua lity, timeles s Apps that match up well with highly ta rgeted podcas t a udiences genera ting W izzard,
App developers a nd podcas ters revenue for the promotion a nd s ale of the Apps . T his announcement repres ents continuing
progres s for W izza rd's expa nded monetization pla n
for its podcas ting network of over 12, 000 podcas t producers a nd their 18 million unique monthly viewers a nd lis teners ,
approximately 70% of whom us e iP ods a nd iP hones to s ubs cribe and downloa d their fa vorite podcas ts .
W izzard pla ns to continue to a cquire the rights of high qua lity Apps to provide podcas t producers with a continuous
s trea m of relevant, pa id a dvertis ing for their epis odic s hows a nd provide App developers a nd W izza rd with increa s ed
s a les revenues .
S pa rk Networks , Inc. reported una udited cons olida ted ea rnings res ults for the fourth quarter a nd full yea r ended December
31, 2009. F or the quarter, the compa ny reported net los s of $9, 608, 000 or $0. 47 per ba s ic a nd diluted s ha re on net revenue
of $11, 056, 000 a gains t net los s of $164, 000 or $0. 01 per bas ic and diluted s hare on net revenue of $13, 216, 000 for the
s a me period a yea r a go. O perating los s of $9, 161, 000 compa red to opera ting income of $1, 237, 000 a yea r a go. L os s
before income ta xes of $9, 499, 000 compared to income before income ta xes of $721, 000 a yea r a go. LB IT DA were
$9, 027, 000 compa red to E B IT DA of $1, 178, 000 a yea r ago. Adjus ted E B IT DA were $2, 525, 000 compa red to $3, 666, 000 a
yea r a go. T he compa ny announced an impa irment of goodwill and other a s s ets of $11, 119, 000 compa red to $1, 235, 000 a
yea r a go.
G iant Interactive G roup, Inc. reported unaudited cons olidated ea rnings res ults for the fourth qua rter a nd yea r ended
December 31, 2009. F or the qua rter, net revenue was R MB 276. 0 million (US D 40. 4 million), compa red to R MB 290. 2
million in the third qua rter 2009 a nd R MB 353. 1 million in the fourth qua rter 2008. Net income a ttributable to the company's
s hareholders was R MB 197. 8 million (US D 29. 0 million), compa red to R MB 197. 7 million in the third qua rter 2009 and R MB
290. 3 million in the fourth qua rter 2008. B as ic and diluted ea rnings per American Depos ita ry S ha re were R MB 0. 87 (US D
0. 13) a nd R MB 0. 85 (US D 0. 12), res pectively, compa red to ba s ic a nd diluted ea rnings per ADS of R MB 1. 26 and R MB
1. 23, res pectively, for the fourth quarter 2008, and ba s ic a nd diluted ea rnings per ADS of R MB 0. 87 a nd R MB 0. 84,
res pectively, for the third qua rter 2009. Non-G AAP net income a ttributable to the company's s ha reholders excluding non-
ca s h s ha re-ba s ed compens a tion wa s R MB 204. 5 million (US D 30. 0 million), compa red to R MB 205. 4 million in the third
qua rter 2009 and R MB 298. 3 million in the fourth qua rter 2008. B a s ic a nd diluted non-G AAP ea rnings excluding non-cas h s h
R MB 0. 87 (US D 0. 13), res pectively, compa red to bas ic and diluted non-G AAP ea rnings per ADS of R MB 1. 29 a nd
R MB 1. 26, res pectively, for the fourth quarter 2008, a nd ba s ic a nd diluted non-G AAP earnings per ADS of R MB 0. 91
and R MB 0. 88, res pectively, for the third qua rter 2009. Income from opera tions was R MB 175, 798, 719 aga ins t R MB
213, 564, 064 of previous year period. Income before income tax expens es wa s R MB 213, 068, 625 compared to R MB
255, 312, 926 of 2008.
On Ma rch 4, 2010 V O IS , Inc. ’s B oard of Directors appointed Ha l C ompton, S r. to the compa ny’s B oa rd of Directors . Mr.
C ompton ha s been a reta iler for more tha n 30 years . S ince 1998 he wa s a member of the B oard of Directors of Linens `N
T hings , Inc. , is currently a member of the B oa rd of Directors of Ma idenform B rands , Inc. a nd is a member of its
C ompens a tion C ommittee a nd C orpora te G overna nce and Nomina ting C ommittee of the B oa rd of Directors of tha t
compa ny. He a ls o s erves a s C ha irma n of the B oa rd of HAS C O Medica l, Inc.
C DC C orp. announced una udited cons olida ted ea rnings res ults for the fourth quarter a nd full year ended December 31,
2009. F or the fourth qua rter of 2009, revenue wa s $83. 0 million compa red to $97. 0 million for the fourth qua rter of 2008. F or
the fourth qua rter of 2009, net income a ttributable to controlling interes t was $0. 3 million compa red to net los s attributa ble
to controlling interes t of $81. 1 million or $0. 76 per ba s ic a nd diluted s ha re in the fourth qua rter of 2008. F or the qua rter
opera ting income from continuing opera tions was $0. 5 million, income before income ta xes of $4. 9 million a nd income from
continuing opera tions of $1. 1 million compared to opera ting los s from continuing opera tions wa s $60. 5 million, los s before
income ta xes of $91. 1 million and los s from continuing opera tions of $89. 1 million or $0. 81 per bas ic and diluted s hare
reported in the s ame period las t year. In the fourth quarter of 2009, C DC C orpora tion a ls o recorded opera ting ca s h flow of
$6. 0 million, compared to $6. 8 million in opera ting ca s h flow in the fourth qua rter of 2008, marking nine cons ecutive
qua rters of pos itive operating ca s h flows . E xpenditure on purcha s e
of property, plant & equipment was $0. 35 million a gains t $0. 7 million reported las t year. F or the fourth quarter of 2009,
C DC C orpora tion reported Adjus ted E B IT DA from continuing opera tions or Adjus ted E B IT DA of $14. 0 million
compa red to Adjus ted E B IT DA for the fourth qua rter of 2008 of $9. 7 million.
F or the year 2010, the compa ny expects to report revenues between $352 million - $358 million, an increa s e of 10-12%
from $320. 1 million in 2009. Adjus ted E B IT DA a re expected between $48 million - $51 million, a n increa s e of 12-19%
from $42. 7 million in 2009.
 Page 11

Valuation
Gaming companies lead market-cap charts: Eleven companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Sixty-two of the 97 companies have market caps under US$100 million, with 41 under US$25
million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market cap
of approximately US$37.8 billion.

Market C ap ($US mm)

Tenc ent Holdings Ltd. 37817.8
Neteas e.com Inc. 5148.5
Modern Times Group Mtg A B 3963.5
G ree, Inc. 2854.4
IA C/InterA ctiveCorp. 2795.1
Open Tex t Corp. 2700.6
S handa Interactive Entertainment Ltd. 2672.7
S ohu.com Inc. 2019.4
Perfect World Co., Ltd. 1927.3
Changy ou.com Limited 1682.6
G ia nt Interactive G roup, Inc. 1673.9
Mix i, Inc. 968.9
K ings oft Corporation Limited 928.4
Chines e G amer International 877.6
V alueClick, Inc. 847.8
NEOWIZ G ames Corporation 623.5
United Online, Inc. 601.6
S hutterfly , Inc. 554.7
S K Communications Co., Ltd. 493.6
NetDragon WebS oft, Inc. 305.2
CDC Corp. 286.2
G ungHo Online Entertainment, Inc. 269.0
G amania Digital Entertainment Co., Ltd. 243.0
Openw ave S y s tems Inc. 229.5
X ING A G 209.4
My riad G roup A G 193.4
V elti Plc 193.2
The9 Limited 181.8
GigaMedia Ltd. 180.5
OA O R B C Information S y s tems 171.4
Webz en Inc. 123.9
TheS treet.com, Inc. 118.3
A ctoz S oft Co., Ltd. 118.2
DA DA S pA 113.1
Fluid Mus ic Canada, Inc. 104.3
Tree.Com, Inc. 97.3
A Q Interactive, Inc. 95.1
Y D Online Corp. 81.4
G ameOn Co Ltd. 78.2
HanbitS oft, Inc. 74.0
Frogs ter Interactive Pictures A G 70.4
S park Netw orks , Inc. 69.6
Ngi G roup Inc. 63.0
Cy berplex Inc. 61.7
NeuLion Incorporated 57.9
G ravity Co., Ltd 55.4
PNI Digital Media Inc. 55.0
Quepas a Corp. 50.4
G eoS entric Oy j 48.9
DXN Holdings B hd 46.0
Multiplied Media Corporation 34.7
NeX plore Corporation 33.5
Unilava Corporation 33.0
DigitalTow n, Inc. 32.9
S ocialw is e, Inc. 29.6
Neurotech Pharmac euticals Co., Ltd. 28.3
A s knet A G 22.2
Y nk K orea Inc. 19.4
Dolphin Digital Media, Inc. 17.1
LookS mart, Ltd. 16.4
Wiz z a rd S of tw are Corporation 16.2
Northgate Technologies Limited 16.1
A c celeriz e New Media, Inc. 15.8
Worlds .com Inc. 13.4
J umbuck Entertainment Limited 11.1
Lingo Media Corporation 10.9
MOK O.mobi Limited 10.8
En2G o International, Inc. 9.6
S ahara Media Holdings , Inc. 9.3
is eemedia Inc. 9.2
V OIS , Inc. 8.7
Oriented Media Group B erhad 8.2
B right Things plc 7.4
R eal V alue Es tates , Inc. 7.0
K iw ibox .Com, Inc. 6.6
K ent International Holdings Inc. 6.0
DigitalPos t Interactive, Inc. 5.6
S pectrumDNA , Inc. 5.4
S NA P Interactive, Inc. 4.9
B roadWebA s ia Inc. 3.4
UOMO Media, Inc 3.3
Mobile Data Corp. 2.6
Unis erve Communications Corp. 2.3
CornerWorld Corporation 1.9
B etaw ave Corporation 1.8
B igs tring Corp. 1.4
B ey ond Commerce, Inc. 1.3
S pry logics International Corp 1.0
Wy nds torm Corporation 0.9
eWorldCompanies , Inc. 0.5
A s s oc iated Media Holdings Inc. 0.4
We-R -Y ou Corp. 0.3
Cody V entures Corporation 0.1
The Parent Company 0.1
Is e B lu Equity Corp. 0.0
S ocial Media V entures Inc. 0.0
InternetA rray , Inc. 0.0
0 1,000 2,000 3,000 4,000 5,000 6,000

Figure 8. Market Cap Ranking

Source. Capital IQ
 0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
(x)
Ngi G roup Inc.
G ameO n C o Ltd.

# Companies
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
As k net AG

under 1.5x.

Source. Capital IQ
Source. Capital IQ
AIM P erfec t W orld C o., Ltd.

20.0 18.9
T he P a rent C ompany

2 1
HLSE Northga te T ec hnologies Limited

12.0
SEHK C yberplex Inc .

11.4
J umbuc k E ntertainment Limited
OTCBB T ree.C om, Inc.

11.2
Figure 9. TEV/Revenue Ranking
U nis erv e C ommunic ations C orp.

3 21 2
ASX
Is e B lu E quity C orp.

2
GTSM

0.0 0.1 0.10.20.2 0.30.40.40.4 0.50.50.6

7.0 6.5
We-R -Y ou C orp.
TSX G igaMedia Ltd.

6.3
Actoz S oft C o., L td.
OTCPK O penwave S y s tems Inc .
DADA S pA

3 11 2
XTRA
DXN Holdings B hd
TSXV C DC C orp.
U nited O nline, Inc.

6 5
TSE
IAC /InterAc tiv eC orp.
SWX

4.6 3.9 3.5 3.5 3.1

T heS treet. com, Inc.
B ey ond C ommerce, Inc.

1 2

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

AMEX
S NAP Interactiv e, Inc.

6
KOSE HanbitS oft, Inc .
OM AQ Interac tiv e, Inc .

2.4 2.3 2.2

O AO R B C Informa tion S ys tems

1 1
OSE

1.9
0.60.60.6 0.70.80.80.80.9 0.9 1.0 1.0 1.0 1.1 1.1 1.1
InternetArray, Inc .
KLSE C ornerWorld C orporation

Average TEV/LTM Revenue - By Exchange

S park Network s , Inc .
NasdaqGS

1.9 1.7
G a ma nia Digital E nterta inment

2 14 1
MICEX Y D O nline C orp.
Y nk K orea Inc .

1
CM

1.1 0.7
S hutterfly , Inc.

are Canadian (average 2.9x revenue vs. 2.9x last week).

NasdaqGM NeuL ion Incorpora ted
C ody V entures C orpora tion

4 1
BSE

0.7 0.3
V alueC lic k , Inc .

1.2 1.4 1.4 1.5 1.5 1.5 1.6 1.6 1.6 1.7
NetDra gon WebS oft, Inc .
G ungHo O nline E ntertainment,
P NI Digital Media Inc .
Modern T imes G roup Mtg AB
S pry logics Interna tiona l C orp
V elti P lc
T E V/LT M R evenue (x)

(x)

1.9 2.0 2.22.22.32.4

S K C ommunic ations C o. , L td.
W ebz en Inc.

0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
XING AG

# Companies
United NE O WIZ G ames C orporation

2
S ohu.com Inc .

20.0 18.9
Kingdom
2.5 2.72.8 3.03.0

O riented Media G roup B erhad

1
Finland My ria d G roup AG

12.0
O pen T ex t C orp.
3.13.2 3.4

China Wiz z a rd S oftware C orporation

10
7.1
3.9

U O MO Media, Inc

2
Australia S ocial Media V entures Inc .
United Neurotech P ha rma ceutica ls C o.,

41
is eemedia Inc .

7.0 6.2
States
4.6 4.6 5.0 5.0

Ac celeriz e New Media , Inc.

3
Taiwan C ha ngy ou.com Limited
5.4 5.9

Mix i, Inc .

2
Germany

4.5 3.9
K ings oft C orporation L imited
U nilava C orporation

6
Japan

3.2
DigitalP os t Intera ctive, Inc.
6.2 6.3 6.5

L ingo Media C orporation

1
3.1
Switzerland
7.6 7.7

F rogs ter Interac tiv e P ictures AG

G ree, Inc .
10.2

Canada

10
C hines e G a mer Internationa l
South G eoS entric O yj

7
As s oc ia ted Media Holdings Inc .
11.512.012.1

Korea
MO K O .mobi Limited
13.5

1
Sweden eWorldC ompanies , Inc.
15.8

F luid Mus ic C ana da , Inc.

17.0

2
Malaysia

2.9 2.3 2.2 1.9

T encent Holdings Ltd.
26.2

Average TEV/LTM Revenue - By Country

B right T hings plc
35.6

1
Russia B igs tring C orp.
S pec trumDNA, Inc.
37.938.2

1
Hong Kong

1.1 0.8

1
Italy
Page 12

States has the most companies (41), trading at an average of 6.2x revenue (vs. 6.6x last week) (Figure 11). Ten companies
number of companies (21), trading at an average multiple of 11.2x (vs. 9.6x last week). On a geographic basis, the United
TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed
TEV/Revenue (LTM) averages 5.2x: The overall average TEV/Revenue (LTM) multiple for our group is 5.2x (vs. 5.5x
last week) (Figure 9). Four companies trade above 25x revenue – Tencent Holdings Ltd. (SEHK:700) at 26.2x, Bright

38.2x. The median is 1.8x. Note that we exclude multiples greater than 50x. Twenty-three companies have multiples

or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
Things plc (AIM:BGT) at 35.6x, Bigstring Corp. (OTCBB:BSGC) at 37.9x, and SpectrumDNA, Inc. (OTCBB:SPXA) at

1
India

0.7 0.3
 Page 13

TEV/EBITDA (LTM) averages 10.5x: The average multiple for the 38 companies with positive EBITDA (and multiples
under 100x) is 10.5x LTM EBITDA (vs. 11.4x last week), led by SK Communications Co., Ltd. (KOSE:A066270) at 37.4x
(Figure 12). Fourteen companies have EBITDA multiples under 7x. The median multiple is 8.7x (vs. 9.3x last week).

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

40. 0 37. 4

35. 0
32.0

30. 0

25. 0
19. 5 19. 8
20. 0
16. 6 17. 3
15. 4
13. 9 14. 5 14. 5
15. 0
11. 3 11. 5 11. 9 12. 8
9. 7 9. 8 10. 0 10.5
10. 0 8.2 8. 2 8. 6 8. 6 8. 7 8. 7
6. 6 6. 8 6. 8
5. 6 5. 9 6. 3 6.3
4. 0 4. 0
5. 0 2. 8 3. 3
0. 3 0. 3 0. 9
0. 0

NE O WIZ G ames C orporation

J umbuc k E ntertainment L imited

P NI Digital Media Inc .

G ungH o O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

C hines e G amer International

U nis erve C ommunic ations C orp.
O AO R B C Information S y s tems
DXN H oldings B hd

C hangy ou. c om L imited

G ameO n C o L td.

Neurotec h P harmac eutic als C o. , L td.

T ree. C om, Inc .

C DC C orp.

S K C ommunic ations C o. , L td.

Modern T imes G roup Mtg AB
U nited O nline, Inc.

S NAP Interac tive, Inc.

O pen T ex t C orp.

T heS treet. c om, Inc.

K ings oft C orporation L imited
C y berplex Inc.

NetDragon WebS oft, Inc.

V alueC lic k , Inc.

S park Network s , Inc.

Y D O nline C orp.

S ohu. com Inc.

IAC /InterAc tiveC orp.

G ree, Inc.

Mix i, Inc.
XING AG
P erfec t World C o. , L td.

Y nk K orea Inc.

O penwave S y s tems Inc.

V elti P lc

S hutterfly , Inc.
DADA S pA
Ac toz S oft C o. , L td.

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 (21), trading at an average multiple of 6.3x (vs. 7.5x last week). On a
geographic basis, the United States has the most companies (41), trading at an average of 11.7x EBITDA (vs. 10.7x last
week) (Figure 14). Ten companies are Canadian (average 8.0x EBITDA vs. 8.3x last week).

Average TEV/LTM EBITDA - By Country

Average TEV/LTM EBITDA - By Exchange
18.0
25.0 20.9 16.6
16.0
20.0 14.0 15.1
12.0 14.2
15.0 16.6 12.8
15.1 10.0 11.7 11.4 11.3
(x)

14.2
(x)

12.411.3
10.0 10.5 9.1 8.0 8.2 8.0
8.6 8.4
8.2
6.6 6.3 6.3 4.0 6.0 7.4
5.0 3.3 0.9 6.3
4.0
0.0 2.0 4.0 0.9
MICEX

OTCBB
NasdaqGM

GTSM
KOSE

TSE

SEHK

NasdaqGS

OSE
OM

CM
AMEX

KLSE

TSX
AIM

TSXV

ASX

0.0
Kingdom
Hong

United

Japan

Russia

Canada

China

Malaysia
Italy
South
Korea

Kong

States
Taiwan

Australia
Sweden

United

# Companies 4 1 6 2 5 2 3 14 1 6 1 2 1 21 2 3 2
# Companies 1 7 3 1 41 6 2 1 10 10 1 2 2

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

Source. Capital IQ
 Page 14

P/E (LTM) averages 23.6x: The average multiple for the 32 companies with positive earnings (and multiples under 100x)
is 23.6x LTM EPS (vs. 23.1x last week), led by Shutterfly, Inc. (NasdaqGS:SFLY) with a 98.1x multiple (Figure 15). Twelve
companies have P/E multiples under 10x. The median is 15.5x (vs. 15.2x last week).

P /E L T M (x)

120.0

98.1
100.0

80.0
69.9
65.5

60.0
51.0 52.6

41.0
40.0 34.1
30.1 30.8
26.5 27.0
23.0 23.1 25. 3
20.3
20.0 14.4 14.8 15.0 16.0
7.1 8.2 8.5 9.1 11.6
4.4 5.3 5. 4
1.7 2.0 2.0 2.8
0.0
0.0

NE O W IZ G ames C orporation
J umbuc k E ntertainment Limited

G a mania Digita l E ntertainment C o., Ltd.

G ungHo O nline E ntertainment, Inc.

C hines e G amer International
DXN Holdings B hd

C hangy ou.c om Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.
G ravity C o., Ltd

S handa Interac tive E ntertainment Ltd.

Neteas e.com Inc.

United O nline, Inc.

S NAP Intera ctive, Inc.

O pen T ex t C orp.
K ings oft C orporation Limited
C y berplex Inc.

G igaMedia Ltd.

Y D O nline C orp.

V alueC lick , Inc.

NetDragon WebS oft, Inc.

S ohu.com Inc.

S park Network s , Inc.

G ree, Inc.

Mix i, Inc.

T encent Holdings Ltd.

XING AG
P erfect World C o., Ltd.

HanbitS oft, Inc.

V elti P lc

S hutterfly , Inc.
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 (21), trading at an average multiple of 27.0x (vs. 30.6x last week). On a geographic basis,
the United States has the most companies (41), trading at an average of 34.3x earnings (vs. 33.1x last week) (Figure 17).
Ten companies are Canadian (average 15.1x EPS vs. 14.7x last week).

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

40.0
60.0 36.6
51.0 35.0
50.0
30.0 34.3
40.0 38.9 29.2
33.5 31.8 25.0
23.1
(x)

30.0 27.0 25.9 23.0

(x)

20.0
23.1 19.6
20.0 23.0 20.3
15.0 15.1
10.0 5.4 5.3 4.4
2.0 10.0 5.4
0.0 4.4
0.0 5.0
OTCBB

GTSM

NasdaqGM
OSE

KOSE

SEHK

TSE

NasdaqGS
AMEX

KLSE

TSX

NYSE
AIM

ASX

0.0
Japan

United

Canada

Kingdom

China

Malaysia
South
Korea
States

Taiwan

Australia
United

# Companies 1 6 3 5 21 2 2 2 14 2 3 2 1 4
# Companies 6 41 7 10 2 3 10 2 2

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

Source. Capital IQ
 Page 15

Upcoming Events
E arnings C alendar
C ompany Date Time Quarter C onf C all Details
CDC Corp. (NasdaqGS:CHIN.A) 9-Mar-10 8:30 a.m. EDT Q4/09 888-603-6873
TheStreet.com, Inc. (NasdaqGM:TSCM) 15-Mar-10 5:00 p.m. EDT Q4/09 800-260-8140

Figure 18. Earnings Calendar

Source. Capital IQ
 Page 16

C omparable C ompany Analys is > Web 2.0

Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

A ccelerize New Media, Inc. US D AC L Z OT C B B 15.8 0.55 0. 0% 0.0% -15.4% -8.3% 139. 1% -31.3%
A ctoz S oft C o. , L td. KR W A052790 K OS E 118.2 15200.00 5. 6% 2.7% -23.6% -12.4% 36.3% -57.8%
A Q Interactive, Inc. JPY 3838 TS E 95.1 158000.00 14.5% 79.3% 289.2% 175.3% 378. 8% -2.2%
A s knet AG E UR XT R A :A5A XT R A 22.2 3.23 -9.0% 9.1% -8.2% -0.6% 9.9% -21.6%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.4 0.01 -60.0% -20.0% -11.1% -42.9% 471. 4% -98.9%
B eta wave C orpora tion US D B W AV OT C B B 1.8 0.06 -53.8% -50.0% -25.0% -25.0% -66. 7% -70.0%
B eyond C ommerce, Inc. US D B Y OC OT C B B 1.3 0.02 -4.3% -37.1% -41.3% -88.4% -96. 0% -98.8%
B igs tring C orp. US D BSGC OT C B B 1.4 0.02 -2.3% -4.0% -23.2% -2.3% 59.3% -62.3%
B right T hings plc GB P AIM:B G T A IM 7.4 0.02 -10.3% -15.3% 22.0% 10.9% -0.3% -39.0%
B roadW ebA s ia Inc. US D BWBA OT C P K 3.4 0.04 -33.3% -33.3% -55.6% -82.6% -96. 0% -96.0%
C DC C orp. US D C H IN.A Nas da qG S 286.2 2.70 8. 4% 27.4% 13.0% 15.4% 196. 7% -31.1%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 682.6 32.63 -1.0% -1.0% 6.1% -19.5% NM -32.5%
C hines e G a mer International TWD G T S M:3083 GTS M 877.6 333.50 8. 6% -1.3% -22.1% -25.2% 118. 0% -35.7%
C ody V entures C orpora tion US D CVCP OT C P K 0.1 0.00 0. 0% -25.0% 172.7% 50.0% 650. 0% -72.7%
C ornerW orld C orpora tion US D CW R L OT C B B 1.9 0.02 -50.0% -33.3% -33.3% -66.7% -85. 7% -86.7%
C yberplex Inc. C AD T S X: C X TS X 61.7 0.92 1. 1% 2.2% -16.4% -27.6% 100. 0% -53.8%
DADA S pA E UR C M:DA CM 113.1 5.12 4. 9% 1.5% -18.2% -19.8% 9.3% -37.5%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 5.6 0.06 6. 7% 42.2% 19.6% 16.4% 1500.0% -35.4%
DigitalT own, Inc. US D DG T W OT C B B 32.9 1.20 -4.0% -4.0% -14.3% -31.4% -60. 0% -65.7%
Dolphin Digital Media, Inc. US D DP DM OT C B B 17.1 0.30 -14.3% 0.0% 11.1% -23.3% -38. 8% -60.5%
DXN Holdings B hd MY R DXN K LS E 46.0 0.68 0. 7% 7.1% 15.4% 16.4% 141. 1% -10.0%
E n2G o International, Inc. US D E TGI OT C B B 9.6 0.40 -33.3% -55.6% -38.5% -11.1% -86. 7% -92.0%
Neurotech P ha rmaceutica ls C o., Ltd. KR W A041060 K OS E 28.3 415.00 -8.8% -34.1% -21.7% -56.1% -27. 8% -64.2%
eW orldC ompa nies , Inc. US D EWRC OT C P K 0.5 0.00 -50.0% -50.0% -50.0% -95.0% 0.0% -97.4%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 104.3 1.70 -1.7% 13.3% -0.6% 30.8% 325. 0% -20.9%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 70.4 20.17 0. 8% 12.7% 6.1% 6. 1% 339. 3% -6.2%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 243.0 50.60 5. 6% 2.4% 4.8% 1. 3% 73.3% -26.5%
G ameO n C o L td. JPY 3812 TS E 78.2 73000.00 6. 6% 13.7% 5.6% -26.3% -9.1% -45.1%
G eoS entric Oyj E UR G E O1V H LS E 48.9 0.04 0. 0% -20.0% 0.0% -20.0% 0.0% -33.3%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 673.9 7.38 -2.5% 0.8% 2.4% -2.9% 0.3% -22.9%
G igaMedia L td. US D G IG M Nas da qG S 180.5 3.31 14.1% 13.7% -10.5% -31.8% -41. 3% -53.4%
G ra vity C o., Ltd US D GR VY Nas da qG M 55.4 1.99 -2.4% 3.9% 37.5% 12.6% 221. 6% -24.2%
G ree, Inc. JPY T S E :3632 TS E 2, 854.4 5700.00 0. 2% 18.0% 31.6% 39.4% 120. 1% -5.6%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 269.0 212000.00 -3.2% 0.0% 29.3% -15.9% 90.8% -24.3%
H anbitS oft, Inc. KR W A047080 K OS E 74.0 3825.00 1. 7% -2.0% -1.0% -2.9% 13.5% -42.4%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 795.1 23.98 3. 9% 13.3% 25.2% 23.0% 64.4% 0.8%
InternetArray, Inc. US D INAR OT C P K 0.0 0.00 25.0% 0.0% -28.6% -80.0% -98. 3% -99.0%
Is e B lu E quity C orp. US D IS B L OT C P K 0.0 0.00 0. 0% 0.0% 0.0% 0. 0% 0.0% -90.0%
is eemedia Inc. C AD IE E T S XV 9.2 0.18 -5.3% 12.5% 0.0% 200.0% 125. 0% -33.3%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 11.1 0.25 -16.7% -18.0% -21.9% -37.5% -44. 4% -50.0%
K ent International Holdings Inc. US D K NT H OT C P K 6.0 1.69 -3.4% -6.6% -8.6% -3.4% 1.2% -31.0%
K ings oft C orpora tion L imited HK D 3888 S E HK 928.4 6.56 -0.6% 8.1% 15.7% -24.6% 143. 0% -30.7%
K iwibox.C om, Inc. US D K IW B OT C B B 6.6 0.02 22.0% -3.2% -31.8% 66.7% -21. 1% -61.5%
L ingo Media C orpora tion C AD T S XV :LM T S XV 10.9 0.90 -4.3% -12.6% -6.2% 0. 0% 0.0% -43.0%
L ookS mart, L td. US D LO OK Nas da qG M 16.4 0.96 1. 1% 1.1% -9.4% -21.3% -4.0% -38.5%
Mixi, Inc. JPY 2121 TS E 968.9 566000.00 -3.1% -5.4% -33.3% 4. 0% 79.7% -34.6%
Mobile Data C orp. US D MB Y L OT C B B 2.6 0.11 -20.0% 0.0% 57.1% 57.1% -68. 5% -72.5%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 963.5 428.00 5. 3% 23.7% 30.6% 43.1% 235. 7% -1.1%
MO K O .mobi L imited AU D MK B AS X 10.8 0.10 5. 3% -13.0% -31.0% 29.9% 66.7% -50.0%
Multiplied Media C orpora tion C AD T S XV :MMC T S XV 34.7 0.27 -5.3% 20.0% 86.2% 92.9% 237. 5% -12.9%
Myriad G roup AG C HF MY R N S WX 193.4 4.70 0. 0% -1.1% -3.7% 5. 6% 17.5% -24.1%
NE O W IZ G ames C orporation KR W A095660 K OS E 623.5 33500.00 -1.8% 12.2% -23.0% -8.3% 71.6% -25.4%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 305.2 4.48 -2.6% 6.4% 4.2% -22.9% 31.8% -37.3%
Netea s e. com Inc. US D NT E S Nas da qG S 5, 148.5 39.75 3. 8% 22.3% 8.0% -11.6% 78.8% -18.0%
NeuLion Incorpora ted C AD T S X: NL N TS X 57.9 0.51 2. 0% -15.0% -28.2% -51.9% 21.4% -60.8%
NeXplore C orpora tion US D NXP C OT C P K 33.5 0.60 9. 1% -14.3% -14.3% 9. 1% -36. 8% -36.8%
Ngi G roup Inc. JPY 2497 TS E 63.0 45900.00 6. 0% 39.7% 89.7% 58.3% 163. 8% -3.2%
Northgate T echnologies Limited INR 590057 BSE 16.1 20.95 6. 9% -1.4% -29.6% -53.6% -31. 0% -65.0%
O AO R B C Information S ys tems R UB R BCI MIC E X 171.4 36.78 3. 3% 2729. 2% 2198. 8% 3402.9% 15225.0% -4.0%
O riented Media G roup B erha d MY R OME DIA K LS E 8.2 0.21 -4.7% 51.9% 70.8% 192.9% 7.9% -10.9%
O pen T ext C orp. US D OT E X Nas da qG S 2, 700.6 47.83 -1.0% 5.3% 24.7% 32.3% 50.6% -3.5%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 229.5 2.74 2. 2% 28.6% 18.6% -3.2% 251. 3% -12.5%
T he P a rent C ompany US D K IDS . Q OT C P K 0.1 0.00 3. 3% -69.0% -55.7% -79.3% -48. 3% -90.6%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 927.3 38.68 7. 8% 1.4% -10.1% -10.5% 213. 7% -23.4%
P NI Digital Media Inc. C AD T S XV :P N T S XV 55.0 1.68 -4.0% -1.2% -1.2% -1.8% 3.7% -20.0%
Q uepa s a C orp. US D QP S A OT C B B 50.4 3.95 -1.0% 31.7% 102.6% 182.1% 249. 6% -6.0%
R ea l V alue E s tates , Inc. US D R V LU OT C B B 7.0 1.10 -8.3% -26.7% 4.8% NM NM -26.7%
S ahara Media H oldings , Inc. US D S HH D OT C B B 9.3 0.30 -25.0% 20.0% -46.4% -90.0% -90. 0% -90.8%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 2, 672.7 39.74 -1.9% -15.2% -23.5% -17.1% 9.4% -38.9%
S hutterfly, Inc. US D S F LY Nas da qG S 554.7 21.41 5. 8% 21.2% 33.4% 64.1% 140. 8% -0.9%
S K C ommunications C o. , L td. KR W A066270 K OS E 493.6 13350.00 -10.1% 3.9% 46.7% 51.7% 80.4% -27.4%
S NA P Intera ctive, Inc. US D S TVI OT C B B 4.9 0.15 -11.8% -16.7% 50.0% 12.5% -52. 6% -57.1%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 86.2% 92.9% -16.9% -95.1% -99. 6% -99.4%
S ocialwis e, Inc. US D S CLW OT C B B 29.6 0.61 22.0% 32.6% 29.8% 10.9% 52.5% -40.2%
S ohu.com Inc. US D S O HU Nas da qG S 2, 019.4 53.47 4. 4% 8.0% 4.0% -17.6% 10.4% -26.0%
S pa rk Networks , Inc. US D LO V A ME X 69.6 3.38 14.6% 20.7% 42.0% 52.3% 47.6% -2.0%
S pectrumDNA, Inc. US D S P XA OT C B B 5.4 0.11 15.8% -37.1% -21.4% -50.0% -38. 9% -75.6%
S prylogics Internationa l C orp C AD T S XV :S P Y T S XV 1.0 0.04 33.3% 300.0% 166.7% 60.0% 100. 0% -33.3%
T encent H oldings Ltd. HK D 700 S E HK 37,817. 8 160.80 3. 7% 16.2% 8.1% 24.7% 211. 6% -8.9%
T he9 L imited US D NC T Y Nas da qG S 181.8 7.24 3. 3% 5.4% -2.4% -7.3% -37. 6% -56.1%
T heS treet.com, Inc. US D TS CM Nas da qG M 118.3 3.75 8. 1% 23.4% 68.2% 54.3% 93.3% 4.2%
T ree.C om, Inc. US D TR E E Nas da qG M 97.3 8.80 2. 6% 11.5% 21.9% 17.5% 107. 1% -32.7%
U nilava C orporation US D UNLA OT C B B 33.0 0.33 -1.5% 88.6% -32.7% NM NM -40.0%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 2.3 0.10 -5.0% 5.6% 111.1% 111.1% 90.0% -32.1%
U nited O nline, Inc. US D UNT D Nas da qG S 601.6 7.08 10.8% 13.5% 1.0% -9.8% 73.1% -25.2%
U OMO Media, Inc US D UO MO OT C B B 3.3 0.04 18.8% 18.8% -29.6% -71.2% -36. 7% -96.4%
V alueC lick, Inc. US D V CLK Nas da qG S 847.8 10.15 4. 2% 9.0% 3.6% -7.4% 56.9% -27.2%
V elti P lc GB P VEL A IM 193.2 3.42 3. 8% 4.7% 74.1% 110.2% 202. 7% 0.0%
V OIS , Inc. US D V O IS OT C B B 8.7 0.01 -3.3% -20.9% -27.5% 74.0% 117. 5% -62.2%
W ebzen Inc. KR W K O S E : A069080 K OS E 123.9 11850.00 -7.4% -6.3% 6.3% -1.3% 39.2% -42.8%
W e-R -Y ou C orp. US D WE RU OT C P K 0.3 0.01 -67.5% 225.0% -35.0% -83.3% -87. 0% -96.6%
W izzard S oftwa re C orporation US D W ZE A ME X 16.2 0.30 -8.3% -13.5% -24.4% -44.9% -24. 3% -60.4%
W orlds .com Inc. US D W DDD OT C B B 13.4 0.25 150.0% 212.5% 150.0% 108.3% 38.9% -7.4%
W ynds torm C orpora tion US D W Y ND OT C P K 0.9 0.05 0. 0% -50.0% 25.0% -50.0% -58. 3% -90.2%
XING A G E UR O1B C XT R A 209.4 29.60 7. 3% 6.9% -10.1% -9.8% 2.0% -22.1%
Y D Online C orp. KR W A052770 K OS E 81.4 6150.00 -6.7% 5.7% -11.1% -30.4% -12. 1% -50.4%
Y nk K orea Inc. KR W A023770 K OS E 19.4 2750.00 -1.6% -6.8% -24.9% -40.8% -21. 2% -68.4%
H igh 86.2% 2729. 2% 2198. 8% 3402.9% 15225.0% 4.2%
L ow -60.0% -69.0% -55.7% -95.1% -99. 6% -99.4%
Average 854.5 -0.7% 37.6% 35.5% 44.5% 262.3% -40.7%
Media n 0. 1% 2.6% 0.0% -2.9% 47.6% -33.9%

Figure 19. Price Performance

Source. Capital IQ
 Page 17

C omparable C ompany Analys is > Web 2.0

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 15.8 5.0x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 118.2 0.6x - 2. 8x - 16.0x - 1.7x
AQ Intera ctive, Inc. G aming J apan TS E 3838 95.1 1.1x - - - - - 1.7x
As knet A G G aming G erma ny XT R A XT R A :A5A 22.2 0.1x - - - - - -
As s ocia ted Media Holdings Inc. G aming U nited S ta tes OTCP K AS MH 0.4 12.1x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 1.8 - - - - - - 1.2x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 1.3 1.0x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.4 37.9x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 7.4 35.6x - - - - - 9.3x
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 3.4 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 286.2 0.8x - 12.8x - - - 12.1x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,682.6 5.4x - 8. 7x - 11.6x - 7.7x
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 877.6 11.5x - 19.8x - 26.5x - 12.7x
C ody V entures C orporation G aming U nited S ta tes OTCP K CVCP 0.1 1.6x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 1.9 1.2x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 61.7 0.4x - 3. 3x - 5.3x - 2.1x
DA DA S pA S ocial Networking Italy CM C M:DA 113.1 0.7x - 6. 3x - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 5.6 6.5x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 32.9 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 17.1 - - - - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 46.0 0.8x - 4. 0x - 5.4x - 0.9x
E n2G o International, Inc. S ocial Networking U nited S ta tes OTCB B E TGI 9.6 - - - - - - -
Neurotech P ha rmaceuticals C o., L td. G aming S outh K orea K OS E A041060 28.3 4.6x - 9. 7x - - - 0.6x
eW orldC ompanies , Inc. G aming U nited S ta tes OTCP K E WRC 0.5 15.8x - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 104.3 17.0x - - - - - 7.3x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 70.4 7.7x - - - - - 9.3x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 243.0 1.4x - 8. 7x - 25.3x - 3.0x
G ameO n C o Ltd. G aming J apan TS E 3812 78.2 0.1x - 0. 3x - 8.5x - 1.0x
G eoS entric Oyj Mobile F inland H LS E G E O1V 48.9 12.0x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,673.9 - - - - 2.0x - 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 180.5 0.6x - - - 7.1x - 1.6x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 55.4 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,854.4 10.2x - 17.3x - 34.1x - 17.8x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 269.0 1.9x - 8. 6x - 51.0x - 8.4x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 74.0 1.0x - - - 69.9x - 2.0x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,795.1 0.9x - 14.5x - - - 1.5x
InternetA rray, Inc. Media U nited S ta tes OTCP K INA R 0.0 1.1x - - - - - -
Is e B lu E quity C orp. Media U nited S ta tes OTCP K IS B L 0.0 0.5x - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 9.2 5.0x - - - - - -
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 11.1 0.4x - 0. 9x - 4.4x - 0.9x
K ent Internationa l Holdings Inc. S ocial Networking U nited S ta tes OTCP K K NT H 6.0 - - - - - - 0.6x
K ings oft C orporation Limited G aming C hina S E HK 3888 928.4 6.2x - 15.4x - 20.3x - 4.9x
K iwibox.C om, Inc. S ocial Networking U nited S ta tes OTCB B K IW B 6.6 - - - - - - -
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 10.9 7.6x - - - - - -
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 16.4 - - - - - - 0.7x
Mixi, Inc. S ocial Networking J apan TS E 2121 968.9 5.9x - 19.5x - 52.6x - 6.1x
Mobile Da ta C orp. S ocial Networking U nited S ta tes OTCB B MB Y L 2.6 - - - - - - -
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,963.5 2.2x - 16.6x - - - -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 10.8 13.5x - - - - - 9.5x
Multiplied Media C orpora tion Mobile C ana da T S XV T S XV :MMC 34.7 - - - - - - 24.3x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 193.4 3.1x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 623.5 2.8x - 10.5x - 30.8x - 15.6x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 305.2 1.7x - 5. 6x - 14.8x - 1.6x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 5,148.5 - - - - 2.8x - 0.7x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 57.9 1.6x - - - - - 7.6x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 33.5 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 63.0 0.0x - - - - - 1.1x
Northgate T echnologies Limited Direct Marketing India BS E 590057 16.1 0.3x - - - - - -
O AO R B C Information S ys tems Media R us s ia MIC E X R BCI 171.4 1.1x - 8. 2x - - - -
O riented Media G roup B erhad Media Mala ys ia K LS E O ME DIA 8.2 3.0x - - - - - 3.5x
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,700.6 3.2x - 11.9x - 41.0x - -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 229.5 0.6x - 14.5x - - - 3.1x
T he P a rent C ompany Mobile U nited S ta tes OTCP K K IDS .Q 0.1 0.2x - - - - - -
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,927.3 0.2x - 0. 3x - 2.0x - 0.9x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 55.0 2.0x - 8. 2x - - - 8.4x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 50.4 - - - - - - -
R eal V a lue E s ta tes , Inc. Media Is ra el OTCB B R V LU 7.0 - - - - - - -
S a hara Media Holdings , Inc. Media U nited S ta tes OTCB B S HH D 9.3 - - - - - - 11.4x
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 2,672.7 - - - - 1.7x - 0.3x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 554.7 1.5x - 11.5x - 98.1x - 2.7x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 493.6 2.4x - 37.4x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 4.9 1.0x - 6. 3x - 27.0x - 2.6x
S ocial Media V entures Inc. Dating U nited S ta tes OTCP K S MV I 0.0 4.6x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 29.6 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,019.4 3.0x - 6. 8x - 15.0x - 3.7x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 69.6 1.4x - 6. 6x - 23.1x - 31.4x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 5.4 38.2x - - - - - -
S prylogics International C orp Media C ana da T S XV T S XV :S P Y 1.0 2.2x - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 37,817.8 26.2x - - - 65.5x - 29.1x
T he9 L imited G aming C hina N as da qG S NC T Y 181.8 - - - - - - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 118.3 0.9x - 32.0x - - - 1.5x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 97.3 0.4x - 9. 8x - - - 1.9x
Unilava C orporation Media U nited S ta tes OTCB B U NLA 33.0 6.3x - - - - - 1.4x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 2.3 0.5x - 8. 6x - - - -
United Online, Inc. Media U nited S ta tes N as da qG S U NT D 601.6 0.8x - 4. 0x - 9.1x - -
UO MO Media, Inc Media C ana da OTCB B UO MO 3.3 3.9x - - - - - -
V a lueC lick, Inc. Media U nited S ta tes N as da qG S V CLK 847.8 1.6x - 5. 9x - 14.4x - 4.0x
V elti P lc Media U nited K ingdom AIM VEL 193.2 2.3x - 11.3x - 23.0x - 6.5x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 8.7 - - - - - - -
W ebzen Inc. G aming S outh K orea K OS E K OS E :A069080 123.9 2.5x - - - - - 1.2x
W e-R -Y ou C orp. G aming U nited S ta tes OTCP K WERU 0.3 0.6x - - - - - -
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 16.2 3.4x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 13.4 - - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 0.9 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 209.4 2.7x - 10.0x - 30.1x - 6.5x
Y D Online C orp. G aming S outh K orea K OS E A052770 81.4 1.5x - 6. 8x - 8.2x - 2.4x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 19.4 1.5x - 13.9x - - - 0.6x
High 37,817.8 38.2x - 37.4x - 98.1x - 31.4x
Low 0.0 0.0x - 0. 3x - 0.0x - 0.0x
Average 854.5 5.2x - 10.5x - 23.6x - 5.8x
Median 52.7 1.8x - 8. 7x - 15.5x - 2.7x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 18

C omparable C ompany Analys is > Web 2.0

S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

United S tates 29 C hina 56, 945. 8 C hina 5,694. 6 C hina 4,496. 8 C hina 2, 262. 8 C hina 49. 0%
C hina 10 U nited S ta tes 5, 465. 2 S weden 3,266. 2 United S tates 3,752. 1 United S tates 393. 7 A us tralia 42. 8%
C a na da 9 J a pan 4, 440. 9 J apan 740. 1 S weden 1,942. 0 S weden 274. 4 T aiwan 37. 3%
S outh K orea 9 S weden 3, 266. 2 T aiwan 515. 6 C a na da 992. 4 J a pa n 213. 0 J apan 24. 3%
J a pa n 6 C anada 2, 538. 6 C anada 282. 1 S outh K orea 740. 1 C a na da 199. 5 S outh K orea 20. 1%
T a iwa n 3 S outh K orea 1, 845. 8 Hong K ong 237. 5 J a pa n 680. 8 S outh K orea 133. 5 S weden 14. 1%
G erma ny 3 T a iwa n 1, 546. 9 S witzerla nd 205. 8 T a iwa n 404. 6 T a iwa n 65. 0 Italy 13. 1%
Aus tralia 2 G ermany 318. 0 S outh K orea 205. 1 Hong K ong 334. 2 Ita ly 31. 0 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 237. 5 R us s ia 193. 9 Ita ly 236. 1 R us s ia 20. 4 Hong K ong 6. 0%
India 1 S witzerla nd 205. 8 U nited S ta tes 188. 5 G erma ny 171. 4 Hong K ong 20. 0 S witzerla nd 5. 4%
F inla nd 1 R us s ia 193. 9 Ita ly 136. 8 R us s ia 156. 3 G erma ny 9. 7 G ermany -7. 4%
United K ingdom 1 Ita ly 136. 8 G ermany 106. 0 Ma lays ia 78. 5 Aus tralia 4. 9 C anada -10. 6%
Ita ly 1 F inland 51. 3 F inland 51. 3 S witzerla nd 63. 0 S witzerla nd 3. 4 U nited S ta tes -15. 4%
Hong K ong 1 Malays ia 36. 4 Malays ia 36. 4 India 47. 7 United K ingdom -2. 7 F inland NA
S weden 1 Aus tralia 29. 4 India 20. 2 Aus tralia 17. 8 F inla nd -18. 5 India NA
R us s ia 1 India 20. 2 Aus tralia 14. 7 F inla nd 4. 5 India -51. 2 U nited K ingdom NA
Ma lays ia 1 U nited K ingdom 5. 6 U nited K ingdom 5. 6 United K ingdom 0. 0 Ma lays ia -85. 2 Mala ys ia NA

G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%

Figure 21. Comparison by Country

Source. Capital IQ

C omparable C ompany Analys is > Web 2.0

S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

OT C B B 16 S E HK 40, 705. 3 S E HK 13,568. 4 OM 1,942. 0 Na s daqG S 1, 918. 2 NY S E 68. 2%

Na s daqG S 14 Nas da qG S 22, 230. 0 OM 3,266. 2 S E HK 607. 9 S E HK 897. 1 AS X 42. 8%
K OS E 8 TS E 4, 129. 4 NY S E 1,594. 3 Na s daqG S 508. 5 OM 274. 4 S E HK 40. 6%
T S XV 5 OM 3, 266. 2 Nas da qG S 1,587. 9 CM 236. 1 TS E 187. 1 GTS M 37. 3%
TS E 5 K OS E 1, 799. 1 TSE 825. 9 NY S E 202. 3 NY S E 137. 9 Nas da qG S 30. 7%
Na s daqG M 4 NY S E 1, 594. 3 GTS M 684. 0 RTS 156. 3 K OS E 115. 4 TSE 24. 7%
TS X 3 GTS M 1, 368. 0 OS E 311. 5 OS E 116. 4 GTS M 65. 0 OS E 22. 3%
XT R A 3 XT R A 318. 0 K OS E 224. 9 TS E 112. 9 CM 31. 0 K OS E 18. 2%
OT C P K 3 OS E 311. 5 SWX 205. 8 GTS M 110. 5 OS E 25. 9 OM 14. 1%
S E HK 3 TS X 253. 3 R TS 193. 9 Na s daqG M 97. 3 Na s daqG M 25. 2 CM 13. 1%
AME X 2 Nas da qG M 237. 6 CM 136. 8 K OS E 86. 1 RTS 20. 4 R TS 13. 1%
AS X 2 SWX 205. 8 XT R A 106. 0 K LS E 78. 5 XT R A 9. 7 T S XV 9. 0%
GTS M 2 R TS 193. 9 TSX 84. 4 SWX 63. 0 AME X 6. 0 Nas da qG M 8. 6%
SWX 1 OT C B B 166. 1 Nas da qG M 59. 4 XT R A 57. 1 AS X 4. 9 S WX 5. 4%
HL S E 1 CM 136. 8 HLS E 51. 3 BSE 47. 7 SWX 3. 4 XT R A -7. 4%
CM 1 T S XV 97. 3 AME X 40. 0 TS X 46. 5 AIM -2. 7 A ME X -27. 7%
BS E 1 AME X 79. 9 K LS E 36. 4 AME X 26. 4 TS X -7. 0 TSX -35. 8%
OS E 1 HLS E 51. 3 BS E 20. 2 AS X 8. 9 T S XV -7. 2 OTCB B -48. 2%
NY S E 1 OT C P K 48. 8 T S XV 19. 5 T S XV 8. 6 OT C P K -17. 9 OTCP K NA
AIM 1 K LS E 36. 4 OT C P K 16. 3 HL S E 4. 5 HL S E -18. 5 A IM NA
OM 1 AS X 29. 4 AS X 14. 7 OT C B B 2. 4 BSE -51. 2 BSE NA
RTS 1 BS E 20. 2 OT C B B 10. 4 OT C P K 0. 6 OT C B B -58. 3 HLS E NA
K LS E 1 AIM 5. 6 AIM 5. 6 AIM 0. 0 K LS E -85. 2 K LS E NA

G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 19

Financing - L as t Three Months (US $ m)

F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed Debt financ ing S eries A S eries B S eries C S eries D S eries E G rand Total
J an-10 Quantcas t US A 27. 5 27.5
P aymo US A 25. 0 25.0
Yelp US A 25. 0 25.0
Vis ible Technologies US A 22. 0 22.0
G uvera A us tralia 20. 0 20.0
6 W aves C hina 17. 5 17.5
S piceworks US A 16. 0 16.0
S MS G upS hup India 12. 0 12.0
Aggregate K nowledge US A 9. 0 9. 0
F lurry US A 7. 0 7. 0
B uyWithMe US A 5. 5 5. 5
G aikai Netherla nds 5. 0 5. 0
Apis phere US A 4. 6 4. 6
E yeka F ra nce 4. 3 4. 3
B eezag US A 2. 5 2. 5
J elli US A 2.0 2. 0
S way US A 2. 0 2. 0
OneF orty US A 2. 0 2. 0
B lippy US A 1.6 1. 6
G raphic .ly US A 1. 2 1. 2
XIHA F inla nd 1.0 1. 0
S oc ialG O US A 0.8 0. 8
J oonto US A 0. 6 0. 6
Drimmi R us s ia
J an-10 Total 5.4 40.9 23.3 97.5 22.0 25.0 214.1

F eb-10 Ngmoc o US A 25. 0 25.0

B lue K ai US A 21. 0 21.0
W ebVis ible US A 20. 0 20.0
TidalTV US A 16. 0 16.0
Avvas i C a na da 14. 1 14.1
F lixs ter US A 12. 5 12.5
Yodle US A 10. 0 10.0
B rightR oll US A 10. 0 10.0
Yammer US A 10. 0 10.0
C urrens ee US A 8. 0 8. 0
TuneWiki US A 7. 0 7. 0
Vivox US A 6. 8 6. 8
Moons hoot US A 6. 6 6. 6
F ynanaz US A 6. 5 6. 5
E verys c ape US A 6. 0 6. 0
P urs way Is ra el 6. 0 6. 0
E ffec tive Meas ure A us tralia 4. 0 4. 0
C ognitive Match UK 2. 5 2. 5
Vook US A 2.5 2. 5
S crapblog US A 2. 5 2. 5
S milebox US A 2. 0 2. 0
P ros per.c om US A 2.0 2. 0
K ODA US A 1.5 1. 5
B ackupify US A 0.9 0. 9
R anker US A 0.8 0. 8
Apps F ire F ra nce
F eb-10 Total 5.7 2.0 23.1 59.6 103.8 10.0 204.1

Mar-10 DataXu US A 11. 0 11.0

NetB as e US A 9. 0 9. 0
TripIt US A 7. 0 7. 0
S eaWell Networks C a na da 6. 8 6. 8
P os terous US A 4. 4 4. 4
S martdate F ra nce 2.2 2. 2
B it.ly US A 1.5 1. 5
C ardigan Networks US A 1. 0 1. 0
Mar-10 Total 2.2 1.5 12.2 18.0 9.0 42.9

G rand Total 13.3 3.5 76.2 100.9 210.3 32.0 25.0 461.2

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 20

C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des cription
Adenyo C a nada www. adenyo. com O ur s olutions enable our cus tomers to integrate the mobile cha nnel into their marketing a nd advertis ing mix and capitalize on its unique
opportunities . T hrough the integration of leading-edge technologies and s pecialized expertis e, Adenyo enables high-performa nce, interactive
mobile marketing and advertis ing for agencies , media companies , brands and corporate ma rketers and s mall to medium-s iz ed bus ines s es .
B it.ly US A bit. ly B itly, Inc. operates a s an utility that allows us ers to s horten the length of an uniform res ource loca tor and then track the res ulting us age. It
a llows us ers to s horten, s ha re, and track links . T he company was founded in 2007 and is bas ed in New Y ork, New Y ork.
C ardagin Networks US A www. cardagin. com C arda gin Networks Inc. develops mobile marketing platform for cons umers and retailers . T he company, through its mobile advertis ing
platform, enables s ma ll and local bus ines s es to digitiz e their loyalty programs , dis s eminate targeted advertis ements to exis ting and repeat
cus tomers , monitor cus tomer habits , and collect da ta for bus ines s us es . T he compa ny is bas ed in C harlottes ville, V irginia .
DataXu US A www. dataxu. com DataX u, Inc. provides an advertis ement optimization and bidding platform for online dis pla y advertis ers . T he company’s platform engages in
valuing, bid managing, and buying advertis ements on an impres s ion-by-impres s ion bas is acros s the advertis ement exchanges operated by
G oogle, Y ahoo, and others . It als o offers advertis ers with cons umer and bra nd ins ights , including na nos egment reports that identify the key
context, a nd cons umer a nd creative attributes ; performance reporting and a nalys is s ervices ; and real-time bidding s ervices . DataXu, Inc. wa s
founded in 2007 and is bas ed in C a mbridge, Ma s s achus etts with an additional office in New Y ork, New Y ork.
NetB as e US A www. netbas e. com NetB as e’s C ontent Intelligence technology reads every s entence ins ide documents , linguis tically unders tands the content and powers s earch
experiences that deliver highly relevant ans wers and ins ights .
P os terous US A www. pos terous .com P os terous , Inc. operates a W ebs ite to blog and s ha re photos on the Internet. It als o enables to s hare thoughts , photos , audio, video, and
files with friends and family. P os terous , Inc. was founded in 2008 and is bas ed in S an F rancis co, C alifornia.
S af-T-Net US A www. alertnow. com S af-T -Net develops and mark ets AlertNow, a technology for communicating with large audiences , s uch a s the parents of s chool children.
AlertNow delivers voice, e-mail and emergency S MS mes s ages a t a ra te up to 2. 5 million per hour – quickly keeping parents and s taff
informed on important a nd time-s ens itive informa tion. In addition to delivering routine mes s aging, AlertNow is a critical component to every
cris is pla n, ens uring accurate information is communicated immedia tely in the event of a lockdown, relocation, evacuation or other
emergency s ituation.
S eaWell Networks C a nada www. s eawellnetworks . com S eaW ell Networks Inc. provides technology for the dis tribution and delivery of Internet video. It offers video hos ting a nd dis tribution s olutions
for content delivery networks and other video hos ting companies . T he company is bas ed in Mis s is s auga, C a nada.
S martdate F rance www. s ma rtdate. com S martdate S AS is an online dating pla tform. T he company enables us ers to s earch friends through F acebook and other s ocial networks
connectivity. It offers its s ervices in F rench, E nglis h, G erman, Italian, Dutch, and S panis h langua ges . T he company was incorporated in 2009
a nd is bas ed in P aris , F rance.
TripIt US A www. tripit. com T ripIt, Inc. provides online travel itinerary organiz ation a nd trip planning s ervices . T he company offers online flights , hotels , rental ca rs , tra ins ,
a nd cruis es information and booking s ervices . T ripIt, Inc. was founded in 2006 and is bas ed in S an F rancis co, C alifornia.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase

RELEVANT DISCLOSURES APPLICABLE TO: NONE

1. None applicable.

ANALYST CERTIFICATION
Each analyst of Mackie 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.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
I n f o r ma t i o n a b o u t M a cki e 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 st 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 c h t o c l 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 mme n d a t i o n s wh i ch a r e i n
e a c h o f o u r r a t i n g ca t e g o r i e s i s a va i l a b l e o n o u r we b s i t e a t ww w. ma c k i e r e se a r ch . co 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 v e d t o b e r e l i a b l e b u t i t s a c c u r a c y o r c o mp l e t e n e s s 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
M a c k i e R e se a r c h C a 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 li t y. M a c ki e 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 c t 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 c u r i t i e s me n t i o n e d h e r e i n . C o 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 s se d p e r mi s si o n o f
M a c k i e R e se a r c h C a p i t a l Co r p o r a t i o n . ( U . S. I n st i t u t i o n a l Cl i e n t s — R e se 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 M a c ki e R e s e a r c h C a p i t a l C o r p o r a t i o n )
a c c 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 c e i vi n g t h i s r e p o r t s h o u l d e f f e c t t r a n s a ct i o n s
i n s e cu r i t i e s d i s cu s s e d i n t h e r e p o r t t h r o u g h R e se a r c h C a p i t a l U. S . A . I n c. , a Br o ke 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 c u 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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