Siemer &amp Associates Mobile Report 3rd QTR 2011

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Siemer Mobile Report Q3 2011
Table of Contents
Section I Section II Section III Section IV Section V Appendix Market Environment Mobile Growth Story Mobile Entertainment Mobile Commerce Trends to Watch Public and Transaction Comparables
Q3 2011 Siemer Mobile Report
Overview
Consumers desire to be constantly connected is catalyzing the transition from traditional computer segments (e.g. desktops, notebooks) to smartphones and tablets
Social networking and mobile video are key drivers 2011 will be the first year where smartphone shipments exceed computer shipments
The mobile commerce industry or mCommerce continues its high growth trajectory as traditional retailers and startups leverage consumers desire for immediate real-time transactions
Growth in mCommerce provides huge upside potential for the mobile advertising industry as consumers are now constantly connected with mobile internet access As mobile personalization (e.g. ringtones, wallpapers, etc.), the largest subsector, nears maturity, mobile entertainment is rapidly emerging as the largest expanding market
Mobile media, including video and gaming, is rapidly growing
Googles acquisition of Motorola Mobility will further engrain Android in the mobile market AT&Ts acquisition of T-Mobile will have a large impact on the U.S. mobile ecosystem
Acquisition brings the U.S. mobile market in-line with other developed markets via consolidation down to 3 dominant mobile operators Market power and aggregate revenue will concentrate in the top two, leaving Sprint a distant third
Source: Siemer Proprietary Research, Wall Street Research, Chetansharma.com
mDialog Case Study

mDialog ReceivesSeriesAFundingfromBlackBerryPartnersFund
The mDialog platform is a real-time, Video as a Service (VaaS) solution that provides video publishers and advertisers a suite of in-stream ad services for mobile and OTT devices Retained as exclusive financial advisor due to S&As strong strategic and venture capital relationships and industry knowledge expertise S&A worked closely with mDialog to evaluate all of its options S&A helped mDialogs CEO with positioning the Company and determining the correct structure and valuation
SeriesAPreferredStock
A Win-Win Situation:
S&A advised and guided mDialog to the next evolution in its corporate life mDialog selected a financial partner with a shared vision of its mission and growth prospects
Siemer&Associatesactedastheexclusive financialadvisortomDialog
GoTV Networks Case Study

GoTVNetworksSoldtoPhunware
GoTV Networks, the industrys largest mobile media network, creates and syndicates original content to mobile. GoTV enables media owners and brands to deliver compelling, personalized, highly engaged content experiences through feature-rich smart applications distributed to the widest audience possible. S&A reached out to many small and large strategic acquirers, including out-of-the-box targets Phunwares acquisition of GoTV Networks combined two major app development studios, creating a mobile powerhouse spanning video production, creation and distribution
hasbeenacquiredby
S&A worked with GoTV Networks to complete a transaction within a specific timeframe that met the needs of its investors Phunware is now one of the largest app development studios
Siemer&Associatesactedastheexclusive financialadvisortoGoTVNetworks
Pringo Case Study

PringoMergeswithMobileBits
Pringo developed a leading enterprise-class platform that provides portals, content management systems, social collaboration and user management tools within one open-source package. Pringos comprehensive offering provides large enterprise clients with the ability to quickly increase site functionality while simultaneously expanding the breadth of offerings -- which in turn results in higher levels of interaction and engagement among enterprise site users. MobileBits merger with Pringo will significantly elevate MobileBits ability to deliver a full range of online content, social collaboration and interactive data solutions all enhancing mobile and web results, allowing for a more targeted advertising platform.
Hasmergedwith
S&A worked with Pringo to complete a transaction that met its desire to continue growing its platform as it enters a new phase of its business development The combined company platform is now more robust, converging users desire to have a mobile and online presence at once
Siemer&Associatesactedastheexclusive financialadvisortoPringo
Transition in Mobile Technology

Mobile 1.0
A Closed Ecosystem Handset manufacturers Operators Application providers Service providers
Mobile 2.0
Enablers of Mobile Transition Ubiquitous mobile broadband access Affordable, unrestricted access to enabling software platforms, tools and technologies Open access, with seamless distribution and monetization abilities Web 2.0 Goes Mobile
Closed Application Systems SMS / MMS WAP
The social web meets mobility Operator Portals WAP sites WAP push Not a Lot of Innovation Ringtones Wallpaper Billing model voice + SMS premium Latency Battery life Bandwidth limitation Constraints Privacy Security Extensive use of user-generated content so the site is owned by its contributors
Source: Siemer Proprietary Research
Current Array of Mobile Devices

Feature Phones Smartphones Tablets
Modern, low-end phones that have web capabilities but do not run a true and complete mobile operating system
High-end phones that run a complete operating system and are able to multitask between fully functional web browsers, email, video, gaming and music features
Tablets are complete mobile computers that further enhance web and media capabilities with larger screens and more advanced processors
Mobile Operating System Preferences

60.0% % of Survey Respondents Buying a Smartphone Who Prefer an Apple, Google or RIM Operating System
50.0% 50.0% 44.0% 38.0% 36.0% 32.0% 30.0% 27.0% 28.0% 30.0% 27.0% 20.0% 17.0% 17.0% 21.0% 18.0% 12.0% 10.0% 4.0% 3.0% 6.0% 6.0% 4.0% 38.0% 30.0% 30.0% 36.0% 36.0% 31.0% 32.0% 46.0%
40.0%
5.0%
5.0%
4.0%
0.0% Mar-09 Jun-09 Sep-09 Dec-09 Blackberry OS (RIM) Source: ChangeWave Research Mar-10 Jun-10 Sep-10 iOS (Apple) Dec-10 Mar-11 Jun-11 Android (Google)
MARKET ENVIRONMENT
Market Environment Opportunities

Development
Carriers More Open to Third-Party Advances Improved Handset Technology Increased Network Speed Improved Content Availability
Description
Opening their networks to targeted third-party content and applications Actively working with mobile platforms to improve the mobile content ecosystem Increasingly open to outsourcing non-core content operations to partners with D2C expertise Handset technology advances enable richer, more sophisticated mobile content product offerings (e.g., iPhone, RIM, Nokia, LG, Motorola) Proliferation of 3G/4G and Wi-Fi in mobile devices enables data-intensive content distribution High-definition video will be more prevalent and the proportion of streamed content compared to side-loaded content is also expected to increase Content owners are beginning to develop content exclusively for mobile platforms Consumers have a strong desire to get content via mobile platforms
Increased User Adoption
Mobile consumers have a strong and growing desire for highly-interactive mobile apps and content Elaborate and engaging apps are continuing to drive adoption
Brands Focusing on Mobile Strategy
Brands are increasing their mobile marketing and advertising dollars to reach target demographics with an engaging rich media experience
11
Market Environment Challenges

Development
Market Environment
Description
Carriers are having to continually invest in new network infrastructure to support the robust growth of mobile 2.0 Mobile 1.0 market has reached maturity and is a declining business model Free and ad-funded business models aggressively pursuing market share may increase customer expectations for paid content Mobile social networks starting to compete with content players and mobile operators for consumer mindshare Media distribution converging onto mobile devices, increasing number of potential competitors from adjacent industries (e.g., Disney, Hearst, Yahoo) Aggressive billing practices, through Mobile 1.0 content, are under increasing regulatory scrutiny, requiring:
Limits on total billable amount Double confirmations of subscription activation
Emergence of Free Content
Mobile Convergence
Regulatory Environment
Cost Control
Major carriers face an increasingly saturated market with falling average revenue per user Wireless carrier revenue will top $1.0tn by 2016, though anticipatory measures must be taken to ensure future profitability Challenging to build cross-device applications as operating systems fragment
Platform Fragmentation
12
MOBILE GROWTH STORY
Evolution of Consumer Preferences

The mobile market is at an inflection point as mobile device shipments are outpacing traditional devices at an accelerating rate, with no signs of growth slowing in the future
800
700
722
600 Global Unit Shipments (mm)
600
500
478
400
300
346 313
370
393
418
200
100
2010A
2011E
2012E
2013E
Traditional Devices Mobile Devices Source: Wall Street Research Note: Traditional devices include desktops, notebooks and netbooks; mobile devices include smartphones and tablets
14
Growth Rate Breakdown

Smartphone Growth
800 120
Tablet Growth
100 Global Unit Shipments (mm) 600 620 Global Unit Shipments (mm)
102
80
85
515
400
423
60 55
297 200
40
20 16
2010A Source: Wall Street Research
2011E
2012E
2013E
2010A
2011E
2012E
2013E
15
Smartphone Market Share Estimates

Smartphone sales will hit $478mm in 2011, representing 28.0% of the global mobile phone market
45.0%
40.0%
40.0%
35.0%
30.0% Smartphone Market Share
25.0% 24.0% 20.0% 19.0% 15.0% 16.0% 20.0%
15.0% 13.0%
10.0%
10.0% 6.0% 3.0% 3.0% HTC Q1 2011 Sony Ericsson 6.0% 6.0% 4.0% 4.0% Motorola 4.0% 1.0% LG Others
5.0%
5.0%
0.0% Nokia Apple RIM Samsung Q1 2010 Source: IMS Research, Wall Street Research
16
Estimated Global Smartphone Penetration Rates

Region: North America Western Europe Asia - Pacific Latin America Russia Worldwide 2009 32.0% 25.0% 8.0% 1.0% 6.0% 9.0% 2010 33.0% 28.0% 9.0% 1.0% 7.0% 10.0% 2011 37.0% 32.0% 10.0% 2.0% 9.0% 11.0% 2012 44.0% 37.0% 12.0% 2.0% 11.0% 13.0% 2013 51.0% 44.0% 14.0% 3.0% 15.0% 15.0% 2014 54.0% 49.0% 16.0% 3.0% 17.0% 17.0%
Russia Total = 17%
United States 55% Canada 50% North America Total = 54%
Italy 67% Germany 33% UK 32% Western Europe Total = 49%
South Korea 30% China 21% India 12% Asia Pacific Total = 16%
Mexico 12% Brazil 2% Latin America Total = 3%
Source: Cisco, Informa Telecoms & Media, Gartner Research
17
Trends in Mobile App Consumption

U.S. Mobile Apps vs. Web Consumption
90
U.S. Mobile App Consumption by Category

7.0% 9.0% 5.0%
75
81 74 70 32.0%
47.0%
60 Minutes per Day
64
66
Games 45
Social Networking
News
Entertainment
Other
43
30
Growth of Smartphone vs. Tablet App Downloads (in billions)

25.0 20.0 15.0
22.0 17.1 11.0 1.0

2011F Tablets 2014E Smartphones
15
10.0 5.0
0 Jun-10 Web Consumption Dec-10 Jun-11 Mobile App Consumption
0.0
Source: Flurry Analytics Note: U.S. Mobile App Consumption as of May 2011
18
Projected Aggregate Revenues From App Stores

Combined revenues from the four major mobile app stores run by Apple, Google, Nokia and RIM will leap 77.7% in 2011 to $3.8bn, with total downloads projected to grow from 18.1bn this year to an estimated 33.0bn in 2014
$9.0
$8.0
$8.3
$7.0 Combined Revenues (in billions of $USD)
$6.9
$6.0
$5.0
$5.6
$4.0
$3.8
$3.0
$2.0
$2.1
$1.0
$0.2
$0.0 2008A
$0.8
2009A 2010A 2011F 2012E 2013E 2014E
Source: iSuppli
19
Social Networks as Catalysts for Mobile Expansion

Social networking sites have been leading the mobile transition, combining responsive, full-service apps with business models that leverage already-present demand for continuous connectivity
As of February 2011, Yelp had registered 3.2 million unique visitors on its mobile app while 35% of all searches came via a mobile device
Mobile users now constitute over 50% of total active users and, as of July 2011, 43% of total tweets are made with a mobile device
Over 200 mm active mobile users in 2011 vs. only 50 mm in September 2009; mobile users now double the amount of desktop-only users
Source: Company Releases; Compete Analytics; Mobi-Geek
20
Smartphones Not Just Mobile Communications

A key driver of smartphone growth lies in their broader applicability for consumers seeking a comprehensive device to streamline their daily tasks while at the same time providing them with enhanced media consumption capabilities
Companies like ZenTracker track a child's location in real-time and sends messages if the child leaves a designated safe area Built into Google Maps
Fully interactive and useful apps that go beyond entertainment only purposes are now ubiquitously available, such as monitoring and equipping a household alarm
OnStar, the multifaceted car service, offers one of many available full service apps that doesnt simply turn on your car, but monitors all critical performance metrics in real-time
21
MOBILE ENTERTAINMENT
Global Mobile Entertainment Spending

The $27.0bn mobile entertainment market is growing at a 14.0% CAGR across all subsectors
As the largest sector, personalization (e.g. ringtones, etc.), continues to mature, future growth will come from premium content, as indicated by the video subsectors 28.0% CAGR As of 2010, 11.0% of global mobile internet users stream video
$40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $19.8 $9.9 $9.1 $3.8 $2.6 $1.8 $3.7 $2.5 2008A
Source: Strategy Analytics; Nielson
2008A-2012E CAGR
$33.6 $30.0 $26.9 $23.6 $10.6 $7.1 $4.9 $2.5 $4.3 $3.1 2009A $3.0 $4.8 $3.7 2010A $5.9 $3.6 $4.8 $4.3 2011E $4.4 $5.4 $5.0 2012 E $11.3 $11.8
Global Mobile Entertainment Sales (in billions of $USD)
Total
14.1%
Personalization
6.7%
Video Full Track Music Games & Apps Infotainment
28.5% 25.0% 9.9% 19.0%
23
Global Mobile Data Traffic From 2010A 2015E

7000.0
2010A 2015E CAGR Total 92.5%

4,149.6
6000.0
5000.0
Mobile Data Usage (in Terabytes)
4000.0
2,452.9
Video
103.8%
3000.0
2000.0
1,334.3
1,407.0
1000.0
33.5 73.7 117.9 11.5 64.2
655.4 160.1 288.4 33.4 72.6 321.0 113.8 561.2 125.3 176.7
893.3
Data File Sharing Other
80.3% 62.4% 94.4%
0.0 2010A Source: Cisco Visual Networking Index 2011F 2012E
258.7 201.0
378.6 318.8
2013E
2014E
2015E
24
Smartphones Are Becoming As Powerful As PCs

Dual-core chips enable more power to be squeezed out of the processor
Two 1.0GHz processors used in parallel speed up performance
In cases where mobile software has been optimized to take advantage of the parallel processing power, dual-core processors provide enhanced multitasking capabilities
Smartphones will increasingly be used as a personal hub for video and other content
With multitasking abilities boosted by dual-core chips, streaming media from a smartphone becomes much more seamless as phones can still function as a web browser and handle email, even while being used as a playback hub
The global penetration rate of dual-core smartphones is expected to be 15.0% by the end of 2011 and will grow to 45.0% by 2015 Nvidia has begun taking advantage of the potential of mobile graphics capabilities, offering a dedicated Android app to provide high quality games that specifically leverage their own dual-core technology More powerful technology in conjunction with larger screen sizes leave tablets positioned for explosive growth
Mobile entertainment companies that can adjust their application offerings to successfully leverage the rapid advances in tablet technology will be best positioned to outperform in a crowded industry
Source: Wall Street Research, Venturebeat.com
25
Upside Potential for Tablets Realizable in the Near-Term

The 2010 World Cup was mobile videos coming out party, providing convincing proof of consumer interest for video on-the-go
ESPN apps offering mobile video services for the World Cup generated 8.2 mm visits and 50.4 mm page views to World Cup content Growth in mobile video data consumption is uneven, occurring at much higher levels for devices with larger screens
This trend points to significant growth opportunities for tablet devices, as they offer a much more immersive entertainment experience
Much of the upside potential of tablet devices will be realized in the near future as high definition screens, powered by newer quad-core processors, become ubiquitous and the industry standard
140 Average Minutes Spent Watching Mobile Coverage of 2010 World Cup 120 100 80 60 40 20 0 2-Inch 3-Inch Screen Size Source: Venturebeat.com, Moconews.net 4-Inch 5-Inch
118.2 102.2
61.1
67.4
26
Mobile Video Bandwidth and Streaming

Global Mobile Bandwidth Usage Global Mobile Video Streaming By Devices and Traffic
Aggregate mobile data consumption grew by 77.0% from 1H 2010 to 1H 2011, far higher than the growth of fixed networks (25.0%) Video streaming grew 93.0% in the first six months of 2011 VoIP and messaging traffic grew even faster at 101.0%, but still only represents a total of 4.0% of all mobile traffic YouTube accounted for a 22.0% share of total mobile bandwidth usage
4% 3%
As of May 2011, Apple continues to dominate the mobile video market with an 80.0% share
The iPad already accounts for 20.0% market share of the mobile video streaming market as traditional networks such as HBO and ABC continue to embrace and create high-quality apps for the device
Although Android comprises 20.0% of the total mobile video market, Google-owned (and Androidoperated) YouTube apps accounted for 52.0% of mobile video streaming
20% 25% 39% 22% 20% 78% 29% Other Apps Video Streaming Web Browsing Other Apps File Sharing VoIP YouTube iPod iPhone 30%
30% 48% 52%
YouTube iPad Android
Other Video Streaming
Source: Allot Communications; Venturebeat.com
27
A New Business Model in Gaming

Freemium, or (free-to-play), gaming has proved to be the only sustainable business model in the mobile gaming industry
The presence of free and cheap games (the average game price is $1.05) is unhealthy and a primary reason why established players like Nintendo, despite increasing demand, have remained on the sidelines
Additionally, as a result, average mobile pergame revenue has historically averaged just $6,000 a year
100% 90% Revenue Generation from U.S. Top 100 Grossing Games 80% 70% 60% 50% 40% 30% 20% 10% 0% January '11 % Revenue From Premium Games Source: Flurry Analytics; Venturebeat.com June '11 % Revenue From Freemium Games
39% 65%
The freemium model allows businesses to offer games free of charge while charging a premium for advanced features Apple introduced in-app purchases (the ability to buy things such as virtual goods without leaving an app) in Q4 2010 and Google followed in Q2 2011 Mobile games occupy roughly 75.0% of all top 100 grossing apps in app stores, making freemium the most dominating business model in the mobile apps industry
61% 35%
28
Splitting the Mobile Games Market

As mobile devices saturate the market and social networks rapidly increase their penetration into developing countries, the mobile games market will split along these lines of value and volume
Value
(large long-term niche)
Volume
(mass market growth)
America
Europe Japan
China
India
Social Mobile
Social-Mobile Casual Online Browser-based MMO
Console MMO Pure Console
South Korea
Brazil
Users: Millions to tens of millions Average Revenue Per User: $ - $$$ Costs: Ranges from millions to tens of millions Operating Profit: Negative to 20%+ Growth Rate: Negative to <10% Business Model: Unit sales, subscriptions, virtual goods
Source: Wall Street Research
Users: Thousands to hundreds of millions Average Revenue Per User: - $$ Costs: Tens of thousands to millions Operating Profit: Negative to 60% Growth Rate: Negative to 20% - 100%+ Business Model: Unit sales, free, virtual goods, ads
29
MOBILE COMMERCE
Mobility Driving Change in Consumer Behavior

Location-Based Services: Enable real-time physical retail/service opportunities Transparent Pricing: Instant local and online price comparison could disrupt retailers Discounted Offers: Deep discounts drive foot traffic to local retailers Immediate Gratification: OTA (over-the-air) instant digital product and content delivery
Location-Based Services: Shopkick iPhone App Find deals and offers in your area Transparent Pricing: ShopSavvy CrossPlatform App Comparison shopping among online and local stores Discounted Offers: Groupon iPhone App Local services up to 90.0% off Immediate Gratification: iTunes Store on iPhone Music/Video/Apps delivered wirelessly
31
Full-Service mCommerce Platforms

Google is the current industry leader in mobile and eCommerce consolidation with Google Offers, a direct Groupon competitor, being integrated with the newly introduced Google Wallet
Google Wallet is an Android app to replace the redundancy of a regular wallet with its multiple credit cards, loyalty cards and gift cards
Google Wallet, and most other digital wallets, are powered by NFC, or (near-field communication), which lets the consumer swipe their device over a receiver to make a payment
During Summer 2011, Google launched a test of NFC in New York City and San Francisco while 120,000 merchants in the U.S. are currently ready to accept Google Wallet and NFC technology
Googles rendition is comprehensive and when a consumer swipes their phone, coupon offers can be automatically redeemed to save the consumer money and/or earn them loyalty points As a result of integration with Google Wallet, offers are tied directly into the wallet app and consumers are able to either scan and pay discounted pricing immediately, or they can display a barcode on their screen which merchants can scan
Google Offers delivers daily, Groupon-like deals to a persons inbox
Current issues with digital wallets lie not with technology but with inconsistent consumer adoption trends
Physical cards work reasonably well, thus successful firms will look to incentivize consumers with tangible rewards When consumers begin getting real value from mobile-based digital and virtual programs, the switch to mobile wallets will become increasingly attractive
32
Revenue Trends
As new technology continues to provide more seamless and secure digital payment services, global mCommerce revenue is set to reach $31.0bn by 2015 mCommerce is also a leading indicator of mobile advertising growth with advertising revenues following consumers as they increasingly shift their preferences toward mobile purchases
mCommerce Revenue Growth

$38 Global mCommerce Revenues in $bn USD
Mobile Advertising Revenue Growth

$25
Mobile Advertising Revenues in $bn USD
$30
$31.0
$20
$20.6
$23
$15
$15
$10
$8
$5
$6.0
$0 2011F 2015E $0
$3.3
2011F 2015E
Source: Forrester Mobile Commerce, Gartner Research
33
Mobile Advertising A Market Poised For Growth

There are 726.0 mm global 3G subscribers
Mobile internet users grew 35.0% YoY from 2009-2010
75.0% of respondents in a 2011 IAB survey reported that buying and selling ads in social media and mobile platforms is important Mobile video is emerging as an important element of mobile internet use
In addition to YouTube, applications for ESPN, Netflix, Hulu and HBO are now available on Android and iOS devices Mobile video data traffic is forecast to grow at a compound annualized rate of 131.0% between 2009 and 2014 Mobile video will reach 66.0% of mobile internet traffic by 2015 By 2014, half of U.S. web browsing will be done on mobile devices
U.S. Mobile-TV Ad Sales ($mm)

$1,600 $1,200 $800 $400
U.S. Mobile-TV Viewers (millions)

60
$1,400.0
45 30 15
52.5
$370.0
$0 2010A 2015E Source: Wall Street Research, Cisco Research(2010) and 2011 IAB Interactive Ad IQ Survey 0
17.6
2010A 2015E
34
Mobile Advertising Ecosystem

Brands Agencies Ad Networks Optimizers Publisher/ Developer Consumers
Promote their brand or product
Create strategy, campaign and buy inventory
Connect buy side and sell side on scale
Optimize ad distribution
Sell their inventory
Engage with adenabled inventory
Source: Smaato, Mobile Advertising Ecosystem
35
Mobile Display Advertising Landscape
Subscriber
Source: LUMAscape
Marketer
36
Mobile Display Advertising Landscape

Supply Side Platforms
Rich Media Ad Servers
Ad Networks
Media Buyers
ADVERTISERS
PUBLISHERS
Data Suppliers
Location Networks
Demand Side Platforms
Source: LUMAscape
37
TRENDS TO WATCH
Venture Capital Investment Trends

Mobile Content Advertising / Marketing Platforms Game Developer / Distributor
VC Investment Criteria and Characteristics by Consumer Internet Sub-Sector

Transaction solutions for mobile commerce Mobile value added services (i.e. improving SMS features and functionality) Mobile application providers and developers International wireless carriers / service providers Location based services (geotargeting) Delivery platforms for Generated Content (UGC) Entertainment networks services for mobile phones User and Ad-serving platforms for mobile carriers Ad targeting solutions Mobile advertising technology and platforms SMS mobile ad network Ad supported gaming platform Pure-play video ad network Mobile search and advertising solutions Advanced casual game publishers Mobile entertainment producers of games, ringtones and images Multiplayer mobile gaming software Developer and publishers of online games Location-based developers mobile game
Software and services for content Distribution and storage methods for content Directories and listings for mobile users Developers of branded widgets
Mobile app game developers
Source: Proprietary discussions involving S&A and select venture capitalists
39
Key Tablet and PC Shipments

There is considerable usage overlap between PCs and tablets, particularly for content-consumption activities, and with consumption accounting for 75.0% of computer usage, it is likely that cannibalization estimates have thus far been underestimated
2009A Shipments (in millions) Desktops Notebooks Netbooks Tablets Total PCs, gross Tablet cannibalization PCs, net Tablets Total YoY Growth Desktops Notebooks Netbooks Tablets Total PCs, gross PCs, net Cannibalization Rate
2010A 146 164 36 16 362 351 (5) 346 16 362 7% 22% 8% 19% 15% 14% 30%
2011F 152 189 29 55 425 386 (16) 370 55 425 5% 15% -20% 245% 17% 10% 7% 29%
2012E 157 210 26 85 478 416 (23) 393 85 478 3% 11% -11% 54% 12% 8% 6% 27%
2013E 159 232 27 102 519 439 (21) 417 102 519 1% 10% 5% 20% 9% 6% 6% 21%
136 135 34 305 305 305 305 -10% 6% 118% 4% 4% 4% -
40
On the Horizon 2011 and Beyond

Tablets will continue to exponentially increase the pace of the mobile revolution
Although tablet devices will eat into traditional computing device sales (i.e. PCs, e-readers, etc.), the majority of prospective buyers view tablets as an additional purchase Significant growth opportunities exist for those able to leverage faster processors and new applications to provide content-creation software for tablet devices
Competition between HTML5 and native apps will significantly shape the future of mobile gaming
HTML5 developers latest approach is the hybrid app, which is a native app that runs all components in a browser
With games running in the browser, users wont be dependent on purchasing from app stores which currently take a 30% cut from developers
95% of the functionality of native apps can currently be delivered by HTML5, leaving native apps with only a temporary advantage, which provides marginal differentiation for the vast majority of apps
The introduction of tiered data pricing by Verizon presents a challenge in marketing dataheavy mobile entertainment services, particularly mobile video, to new smartphone converts
With multi-core technology, developers will be able to streamline their offerings to consume data more efficiently, although new customers may still avoid innovative apps altogether if they cannot clearly understand their pricing options
Source: Wall Street Research, Venturebeat.com
41
PUBLIC AND TRANSACTION COMPARABLES
Select Mobile Public Comparables as of 11/16/2011

(figures in millions of $USD, except per share)
Mobile Companies Acotel Group SpA Artificial Life, Inc. Aspiro AB Buongiorno SpA Com2uS Corporation DADA SpA Danal Co. Ltd. Dena Co. Ltd. Digi.com Bhd SmartEbook.com. Co., Ltd. GameLoft SA Glu Mobile, Inc. Gree, Inc. Index Corporation Kongzhong Corp. Motricity, Inc. NeuMedia, Inc. Smith Micro Software Inc. SNAP Interactive, Inc. Tencent Holdings Ltd. Tose Co. Ltd. Velti Plc
Ticker ACO ALIF ASP BNG A078340 DA A064260 2432 DIGI 2330 GFT GLUU 3632 4835 KONG MOTR MNDL SMSI STVI 700 4728 VELT
Share Price $31.80 0.06 0.22 1.39 23.46 2.81 6.27 34.67 11.03 25.06 5.63 3.12 35.42 24.11 4.93 1.45 0.65 1.12 0.63 23.06 6.30 8.75 Mean Median
Market Cap $130.8 4.4 45.3 146.5 223.6 45.6 103.1 5,119.9 8,578.3 55.0 426.8 198.7 8,201.5 94.8 186.2 67.0 27.1 40.1 23.8 36,553.4 46.6 538.6
Enterprise Value (EV) $84.6 4.9 37.4 262.8 186.6 80.9 81.1 4,294.9 8,495.6 -2.0 391.6 161.9 7,931.1 353.9 53.2 70.3 32.1 -14.0 15.1 34,617.6 19.5 408.6 $2,616.7 $82.9
EV / FYE Revenue EBITDA 0.4x 0.1x 0.9x 0.8x 7.5x 0.4x 1.1x 2.9x 4.9x NM 1.9x 2.5x 9.5x 1.2x NM 0.5x 3.5x NM 2.3x 11.6x 0.3x 3.5x 2.9x 1.9x 12.2x 0.3x NM 6.0x 49.9x 6.3x 10.8x 5.7x 11.5x NM 11.2x NM 19.5x 11.1x 2.6x 14.6x NM NM NM 21.8x 3.3x 21.3x 13.0x 11.2x
EV / LTM Revenue EBITDA 0.5x 0.3x 0.9x 0.8x 7.0x 0.4x 1.1x 2.5x 4.5x NM 1.8x 2.4x 7.4x 1.2x NM 0.5x 4.0x NM 0.9x 8.5x 0.3x 2.6x 2.5x 1.2x 4.9x NM NM 6.4x 45.5x 8.9x 10.8x 5.1x 10.2x NM 11.1x NM 14.6x 11.1x 2.4x 14.4x NM NM NM 17.6x 3.3x 65.3x 15.4x 10.8x
LTM Annual Revenue Growth -24.4% -42.2% 36.2% -1.9% 0.2% 38.5% -1.3% 59.5% 12.5% -58.4% 20.9% -1.6% 101.5% -34.0% 7.9% 8.5% -30.8% -34.5% 250.4% 46.5% 27.9% 28.1% 18.6% 8.2%
Source: Capital IQ
43
Selected M&A Transactions

(figures in millions of $USD) Date Target Announced 11/09/2011 Yole Wireless Technology (HongKong) 11/08/2011 LMK, LLC. 11/06/2011 iLoop Mobile, Inc. 11/03/2011 PhotoWonder 11/01/2011 Global Bay Mobile Technologies Inc. 10/31/2011 Monitise Americas, LLC 10/28/2011 Smartron5 Inc. 10/24/2011 Particle Code 10/24/2011 Volly, Inc. 10/24/2011 Wirkle Inc. 10/18/2011 Fromdistance Ltd. 10/12/2011 Cdnetworks Co Ltd 10/10/2011 Cybird Co. 10/10/2011 Qumu, Inc. 10/07/2011 Mobile Complete, Inc. 10/06/2011 NewBay Software Limited 10/06/2011 Swype Inc. 10/03/2011 Geocade Inc. 10/03/2011 Nitobi Software Ltd. 10/01/2011 Lucidity Mobile Ltd. 09/30/2011 SigNav Pty Ltd. Acquirer Shenzhen Fei Si Information Black Ocean LLC Lenco Mobile Inc. Baidu, Inc. VeriFone Systems, Inc Monitise plc LOLapps, Inc. Appcelerator, Inc. Location Labs Location Labs Numara Software, Inc. KDDI Corp. Vexed Limited Rimage Corp. Keynote Systems Inc. Research In Motion Limited Nuance Communications, Inc. JNJ Mobile, Inc. Adobe Systems Inc. Fetch Media Ltd u-blox Holding AG Target Business Description Mobile Content Mobile Content Mobile Advertising Mobile Services Mobile Solutions Mobile Payments Mobile Games Mobile Solutions Mobile Services Mobile Solutions Mobile Solutions Mobile Content Mobile Advertising Mobile Solutions Mobile Services Mobile Solutions Mobile Solutions Mobile Services Mobile Solutions Mobile Advertising Mobile Services Implied Enterprise Value $10.5 47.0 26.8 195.3 51.8 90.0 100.0 102.5 EV/LTM Revenue 2.0x 5.0x 4.5x EV/LTM EBITDA -
Source: Capital IQ
44
Select M&A Transactions (contd)

(figures in millions of $USD) Date Target Announced 09/22/2011 Stockgroup Media Inc., Mobile Operations 09/22/2011 Air2Web, Inc. 09/19/2011 Fusion Wireless, Inc. 09/15/2011 Unicell Advanced Cellular Solutions Ltd. 09/09/2011 Steam Communications Oy 09/06/2011 Techneos Systems Inc. 09/05/2011 Cybird Co. 09/02/2011 Zave Networks, Inc. 08/31/2011 Global Idealogy Corp., Inc. 08/31/2011 Zaypay International B.V. 08/30/2011 KT Innotz Inc. 08/30/2011 Digital Reach Group Limited 08/29/2011 Resolute Games & Apps 08/15/2011 Socialight, Inc. 08/10/2011 The Bar Pages, Inc. 08/05/2011 MCN Asia Holdings,Pte. Ltd. 08/03/2011 HipCricket, Inc. 08/01/2011 Blammo Games Inc. 07/27/2011 Nobot Inc. 07/27/2011 Gotta Go Text, LLC and Hot Deals Network 07/27/2011 Zlango, Ltd. Acquirer QuoteMedia Inc. Velti Plc u-blox Holding AG TMT Investments PLC Arena Interactive oy Confirmit ASA GMO NIKKO Inc. Google Inc. Mobile Interactive Group Limited KT Corp. TAKE 5 SOLUTIONS, LLC. Lokion, Inc. Group Commerce Inc. Energy King, Inc. (nka:Godfather OPT, Inc. Augme Technologies, Inc. Glu Mobile, Inc. mediba Inc. SoMo Technologies, Inc. Vringo, Inc. Target Business Description Mobile Services Mobile Advertising Mobile Solutions Mobile Solutions Mobile Advertising Mobile Services Mobile Advertising Mobile Advertising Mobile Services Mobile Payments Mobile Services Mobile Advertising Mobile Games Mobile Platform Mobile Platform Mobile Advertising Mobile Advertising Mobile Games Mobile Advertising Mobile Advertising Mobile Services Implied Enterprise Value $19.0 28.3 0.9 0.2 9.3 54.9 21.7 4.0 EV/LTM Revenue 0.5x 0.1x 0.1x 6.2x EV/LTM EBITDA NM NM -
Source: Capital IQ
45

(figures in millions of $USD) Date Announced Target 07/20/2011 JAGTAG, Inc. 07/14/2011 Venue Media LLC 07/12/2011 GoTV Networks 07/11/2011 Projkt Nine, Inc. 07/08/2011 Beat Systems Limited 07/06/2011 Kingsoft Corporation Limited 07/05/2011 NEPRO IT Co.,Ltd. 06/30/2011 Mbrand3 Regile Mobile 06/29/2011 Pringo 06/27/2011 GoMo News 06/27/2011 United Cellular Technologies Group 06/22/2011 ProScan Group 06/16/2011 Axel Mark, Inc. 06/14/2011 Terrestar Networks, Inc. 06/07/2011 i-POP Networks Pte., Ltd. 06/07/2011 Scoreloop AG 06/07/2011 15miles 06/01/2011 WPA Mobile Aps 06/01/2011 China Youth Media, Inc. 05/23/2011 Qustodian Trust, S.L. 05/23/2011 RunSystem Corporation 05/20/2011 Rayonnance Technologies SAS 05/18/2011 Rough Cookie B.V. 05/12/2011 Selatra Limited Acquirer Target Business Description Augme Technologies, Inc. Mobile Multimedia Services Energy King, Inc. Mobile Advertising Phunware, Inc. Mobile Content Riptide Games, Inc. Mobile Gaming Capita PLC Mobile Software Solutions Tencent Holdings Ltd. Mobile Gaming Mobile Content Mobile Network Group SA Mobile Advertising MobileBits Holding Corp. Mobile Platform bNET Communications, Inc. Mobile Advertising Neomobile SpA Mobile Entertainment Solutions Zetes Industries Mobile Software Solutions Septeni Holdings Co Ltd Mobile Content Dish Network Corp. Mobile Network Services InternetQ PLC Mobile Media Services Research In Motion Limited Mobile Gaming LSF Interactive, Inc. Mobile Advertising ePocket Solutions ASA Mobile Software Solutions China Youth Media, Inc. Mobile Advertising Mobile Advertising GMO Internet Inc. Mobile Software Solutions EPF Partners Mobile Software Solutions ngmoco, LLC Mobile Gaming 24 Mobile Advertising Solutions AB Mobile Content Implied Enterprise Value $6.1 536.8 20.5 7.5 1325.0 9.9 71.0 EV/LTM Revenue 4.7x 3.6x 3.1x 0.3x 3.1x EV/LTM EBITDA 10.3x NM 5.2x -
Source: Capital IQ
46

(figures in millions of $USD) Date Announced 05/12/2011 05/11/2011 05/11/2011 05/10/2011 05/03/2011 05/02/2011 04/29/2011 04/21/2011 04/21/2011 04/19/2011 04/12/2011 04/11/2011 03/24/2011 03/18/2011 03/16/2011 03/16/2011 03/12/2011 03/08/2011 02/25/2011 02/23/2011 02/18/2011 02/12/2011 02/10/2011 02/08/2011 Target Acquirer Amaya Gaming Group Inc. SinnerSchrader AG WebMediaBrands Inc Marvelous Entertainment Electronic Arts Inc. Random House, Inc. RealNetworks Inc. GREE International, Inc. ValueClick Media, Inc. Buongiorno SpA eBay Inc. nSphere, Inc. YOC AG Zynga, Inc. Cobalt Ray Co. Ltd EveryMatrix Ltd Motricity, Inc. Open Text Corp. Exclaim Mobility, Inc. Cobalt Ray Co. Ltd Cellit, LLC Moli Mobile Limited Vringo, Inc. Motopia Limited Target Business Description Mobile Entertainment Mobile Software Solutions Mobile Social Gaming Mobile Content Mobile Gaming Mobile Content Mobile Content Mobile Social Gaming Mobile Gaming Mobile Entertainment Solutions Mobile Commerce Mobile Commerce Mobile Advertising Mobile Gaming Mobile Gaming Mobile Gaming Mobile Entertainment Mobile Interactive Solutions Mobile Media Services Mobile Content Mobile Advertising Mobile Gaming Mobile Content Mobile Social Gaming Implied Enterprise Value $9.7 1.7 14.9 5.3 3.6 104.0 70.0 44.8 17.4 139.5 17.4 0.3 EV/LTM Revenue 0.9x 7.1x 0.6x NM 0.4x 2.8x 10.6x 2.6x EV/LTM EBITDA NM 3.1x NM NM NM Chartwell Technology Inc. TIC-mobile GmbH Inside Network, Inc. Liveware Inc. Firemint Pty Ltd. Smashing Ideas, Inc. Ring Back Tones Australia Pty Ltd. OpenFeint Inc. Greystripe, Inc. DadaNet S.p.A. GittiGidiyor A.S. Peekaboo Mobile, Inc. MobileADict Srl Floodgate Entertainment, LLC NEPRO IT Co.,Ltd. Miles Ahead Ltd Adenyo Inc. weComm Limited Didiom LLC NEPRO IT Co.,Ltd. MESSAGEbuzz Inc. Oberon Information Technology Co. Ltd. m-Wise Inc., Substantially all Assets Fatzoo Pty Ltd
Source: Capital IQ
47

(figures in millions of $USD) Date Announced 02/08/2011 02/04/2011 02/03/2011 02/02/2011 02/02/2011 01/30/2011 01/25/2011 01/20/2011 01/18/2011 01/11/2011 12/29/2010 12/24/2010 12/23/2010 12/23/2010 12/22/2010 12/20/2010 12/17/2010 12/06/2010 12/02/2010 12/02/2010 11/30/2010 11/24/2010 11/19/2010 11/16/2010 Target Acquirer Target Business Description Implied Enterprise Value $0.5 28.5 45.4 2.0 17.9 427.2 40.0 2.3 2.7 34.1 0.9 EV/LTM Revenue 219.2x 0.3x 2.3x 0.8x 0.7x EV/LTM EBITDA 4.7x NM 6.2x THQ Wireless, Inc. 24 Mobile Advertising Solutions AB Mobile Gaming adHUBS Inc. Reply! Inc. Mobile Advertising UDS Directory Corp. Poynt Corporation Mobile Content Elevate Marketing Group, LLC Highland Business Services, Inc. Mobile Software Solutions Deconstruct Media, Inc. Verve Wireless, Inc. Mobile Advertising Adenyo Inc. Motricity, Inc. Mobile Entertainment Solutions rel8tion, LLC Facebook, Inc. Mobile Advertising Hudson Soft Company Konami Corp. Mobile Entertainment Software Yospace Technologies Ltd. MOKO.mobi Limited Mobile Video Services Index Corporation Mobile Commerce Wokup SAS Wedia SA Mobile Advertising NEPRO IT Co.,Ltd. Cobalt Ray Co. Ltd Mobile Content Samart Corp. Public Co. Ltd. Mobile Media Services Shanghai Chenyan Information Technology Chengdu B-ray Media Co. Ltd. Mobile Gaming Fox Mobile Group, Inc. Jesta Capital Group Mobile Content Celestial Digital Entertainment, Ltd. Profit Harvest Company, Ltd. Mobile Gaming FoneStarz Media Group Limited LiveWire Mobile, Inc. Mobile Entertainment Services 3GUU Mobile Entertainment Industrial VODone LIMITED Mobile Gaming The Zynga With Friends Studio Zynga, Inc. Mobile Gaming Racing Limos America, Inc. Atlas Technology Group, Inc. Mobile Advertising PlayScreen, LLC Mobile Social Gaming 2moro Mobile Pty Ltd. Motopia Limited Mobile Application Developer CAS GmbH Accenture plc Mobile Software Solutions G-mode Co. Ltd. GAIA Holdings Corporation Mobile Gaming
Source: Capital IQ
48

(figures in millions of $USD) Date Announced 11/09/2010 11/03/2010 11/01/2010 10/15/2010 10/11/2010 10/05/2010 10/05/2010 09/30/2010 09/30/2010 09/29/2010 09/18/2010 09/01/2010 08/30/2010 08/26/2010 08/25/2010 08/16/2010 Target Acquirer Target Business Description Implied Enterprise Value $15.0 18.9 54.1 133.0 11.8 $79.2 $19.0 EV/LTM Revenue 11.6x 2.4x EV/LTM EBITDA 6.4x 6.0x 5.7x Beijing Genesis Interactive Technology Ooh Wee Media, Inc. Vortxt Interactive, Inc. Mobiqa Ltd. Ozura World Ltd. Airborne Mobile Inc. Dilithium Inc. Bravo Games S.L. Mobclix, INC. mSnap, Inc. Injoy Information Technology Co. Limited VizualMobile Limited Zetawire Inc. ExtendMedia Corporation Zero9 S.p.A MConnect Pty Ltd. Accenture plc Mobile Software Solutions Super Rad Corporation Mobile Media Services Transcontinental Inc. Mobile Messaging Services NCR Corp. Mobile Commerce PT Inovisi Infracom Tbk Mobile Entertainment Services Cellfish Media, LLC Mobile Messaging Services Onmobile Global Limited Mobile Video Solutions Sociedad para la Promocin Mobile Social Gaming Velti USA, Inc. Mobile Advertising Marketron Broadcast Solutions, LLC Mobile Advertising Moli Group Ltd. Mobile Entertainment Services Cloud Centric Systems, Inc. Moblile Software Services Google Inc. Mobile Commerce Cisco Systems, Inc. Mobile Media Services Neomobile SpA Mobile Media Services Motopia Limited Mobile Advertising Mean Median
Source: Capital IQ
49
Select Mobile Private Placements

Date Announced
09/28/2011 09/21/2011 09/20/2011 09/15/2011 09/12/2011 09/08/2011 09/08/2011 09/08/2011 09/07/2011 08/31/2011 08/28/2011 08/24/2011 08/24/2011 08/22/2011 08/21/2011 Mootwin SAS Mention Mobile LLC Milk Inc. Masabi Limited Radiate Media Inc. Smule, Inc. 4INFO, Inc. Sincerely, Inc. Iddiction, Inc. BlueStack Systems, Inc. Waze Ltd. Kickanotch mobile Appyzoo Inc madvertise Mobile Advertising GmbH, Affle Pte Ltd.
Target
Business Description
Mobile Apps Mobile Games Mobile Apps Mobile Commerce Mobile Platform Mobile Apps Mobile Advertising Mobile Apps Mobile Apps Mobile Software Mobile Services Mobile Services Mobile Games Mobile Advertising Mobile Advertising
Amount Raised in Round ($mm)

$5.5 0.3 1.5 4.0 10.0 12.0 14.0 3.0 3.5 6.4 30.0 1.1 0.3 10.0 10.0
Total Funding Raised ($mm)

$6.7 0.3 3.0 6.0 21.1 23.9 84.5 3.0 3.5 21.8 67.0 1.8 0.3 10.0 10.0
Source: Capital IQ *Total Funding Raised includes all public data, some rounds were not disclosed
50
Select Mobile Private Placements (contd)

Date Announced
09/28/2011 09/21/2011 09/20/2011 09/15/2011 09/12/2011 09/09/2011 09/08/2011 09/08/2011 09/08/2011 09/07/2011 09/06/2011 08/31/2011 08/26/2011 08/24/2011 08/24/2011 08/24/2011 08/22/2011 08/21/2011 08/20/2011 08/18/2011 08/16/2011 08/15/2011 Mdialog Flexilis, Inc. Klip, Inc. InMobi Zfere Holdings Inc. Actus Mobile Solutions FastCustomer, Inc. Echoecho Media, Inc. Taptu Limited Adfonic Ltd. MoonShado, Inc. CardStar, Inc. JiGrahak Mobility Solutions (P) Ltd. Bloodhound Inc. Taptera Inc. Beijing Chukong Technology Co.,Ltd Mogreet, Inc. Brandtone Limited SavvyPhone, LLC Noqoush Mobile Media Group Zoove Corp. Expedite 5, Inc.
Target
Mobile Video Mobile Software Mobile Platform Mobile Advertising Mobile Platform Mobile Advertising Mobile Apps Mobile Apps Mobile Media Services Mobile Commerce Mobile Services Mobile Commerce Mobile Advertising Mobile Apps Mobile Services Mobile Games Mobile Messaging Mobile Messaging Mobile Services Mobile Advertising Mobile Advertising Mobile Games

$5.0 40.0 2.0 200.0 681.8 0.3 0.8 0.8 3.5 7.5 1.1 0.5 0.2 0.3 2.0 14.0 3.0 8.2 3.0 3.0 15.0 1.0

$8.2 76.0 2.0 215.6 781.8 0.3 0.8 0.8 16.9 8.1 8.4 2.3 2.4 0.3 2.0 14.0 12.0 28.0 3.0 3.0 26.7 10.7
51

Date Announced
08/04/2011 07/19/2011 07/18/2011 07/01/2011 06/30/2011 06/30/2011 06/23/2011 06/17/2011 06/15/2011 06/09/2011 05/19/2011 05/17/2011 05/10/2011 04/19/2011 04/08/2011 03/31/2011 03/29/2011 03/24/2011 03/10/2011 03/09/2011 03/03/2011 DB3 Mobile, Inc. Vserv Digital Services Pvt. Ltd. TheMobileGamer Pte Ltd. Tapjoy, Inc. Burt TicTacTi LTD Vpon Inc. Bee Media Incorporated Tintri, Inc. ThunderSoft Co., Ltd. Fuse Powered Inc. Biff Labs, Inc. Sourcebits Technologies Private Limited Briabe Media, Inc. WhatsApp Inc. GameSalad Inc. VODone LIMITED Tintri, Inc. Rovio Mobile Ltd. MindSnacks, Inc. Ruckus Media Group, LLC
Target
Mobile Entertainment Services Mobile Advertising Mobile Gaming Mobile Media Services Mobile Advertising Mobile Media Services Mobile Advertising Mobile Media Services Mobile Media Services Mobile Gaming Mobile Gaming Mobile Software Solutions Mobile Software Solutions Mobile Advertising Mobile Messaging Services Mobile Gaming Mobile Entertainment Services Mobile Software Solutions Mobile Gaming Mobile Gaming Mobile Entertainment Services

$0.5 3.0 0.8 30.0 3.2 0.5 7.0 0.1 18.0 15.4 2.0 1.5 10.0 2.0 8.0 6.1 26.2 17.0 42.0 1.2 $3.5

$0.5 3.0 1.2 70.7 3.2 0.5 7.0 0.1 35.0 15.4 2.0 1.5 10.0 2.0 8.0 7.3 105.8 35.0 42.0 1.2 $3.5
52

Date Announced
02/28/2011 02/24/2011 02/23/2011 02/08/2011 01/26/2011 01/17/2011 01/12/2011 01/06/2011 12/30/2010 12/29/2010 12/21/2010 12/15/2010 12/13/2010 12/06/2010 11/22/2010 11/12/2010 11/10/2010 11/02/2010 10/28/2010 10/20/2010 09/27/2010 Clickatell (Pty) Ltd. ZIO Studios SAS Grey Area Ltd. TinyCo.com Smaato, Inc. Crimson Tide Plc Apalya Technologies Pvt. Ltd. Tapjoy, Inc. TapMe, Inc. Turpitude, LLC SCVNGR, Inc. Pocket Gems, Inc. Mobixell Networks Inc. Lotame Solutions, Inc. Mo'Minis, Ltd. HI Corporation Oberon Media, Inc. NetPlay TV plc Kiip, Inc Beijing Downjoy Information Tech Co., Ltd NetShelter Technology Media, Inc.
Target
Mobile Messaging Services Mobile Entertainment Services Mobile Gaming Mobile Gaming Mobile Advertising Mobile Software Solutions Mobile Entertainment Services Mobile Entertainment Services Mobile Gaming Mobile Entertainment Services Mobile Gaming Mobile Gaming Mobile Media Services Mobile Media Services Mobile Gaming Mobile Software Solutions Mobile Gaming Mobile Entertainment Services Mobile Advertising Mobile Gaming Mobile Advertising

$12.0 1.3 2.5 18.1 7.0 0.8 7.5 21.0 1.5 1.0 17.0 5.0 10.0 11.0 4.5 1.9 16.0 4.0 0.3 12.0 15.0

$12.0 1.3 2.5 18.1 15.0 4.7 11.0 70.7 1.8 1.0 21.9 5.0 39.0 36.3 7.9 1.9 36.5 38.1 4.4 12.0 23.0
53

Date Announced
09/15/2010 09/15/2010 09/07/2010 08/22/2010 07/30/2010 07/20/2010 07/14/2010 07/12/2010 07/11/2010 07/08/2010 07/06/2010 07/02/2010 07/02/2010 06/24/2010 04/09/2010 04/06/2010 03/22/2010 03/03/2010 01/21/2010 01/11/2010 BUMP Network, Inc. Virtual City Ltd uTest Inc. Inneractive Ltd. BoxTone, Inc. Advanced Mobile Solutions Worldwide, Inc. Handmade Mobile Entertainment Limited Adsmarket, Ltd. E-Trader Group Ltd. OpenFeint Inc. Jiubang Digital Technology Co., Ltd. SteelCloud Inc. GameSalad Inc. Alinto SA hi5 Networks, Inc. Beijing Moca World Technology Co., Ltd. TheMobileGamer Pte Ltd. Cloudmark Inc. Rixty, Inc. Webaroo Technology (India) Private Limited
Target
Mobile Messaging Services Mobile Software Solutions Mobile Software Solutions Mobile Content Provider Mobile Software Solutions Mobile Media Services Mobile Entertainment Services Mobile Advertising Mobile Software Solutions Mobile Gaming Mobile Content Provider Mobile Software Solutions Mobile Gaming Mobile Messaging Services Mobile Entertainment Services Mobile Gaming Mobile Gaming Mobile Messaging Services Mobile Software Solutions Mobile Messaging Services Mean Median

$1.1 1.0 13.0 2.3 7.5 0.1 10.0 17.0 3.0 8.0 55.0 2.0 1.2 0.6 14.0 2.0 0.4 23.0 1.2 12.0 $16.3 $4.0

$1.1 1.0 17.5 2.3 29.5 0.1 14.0 48.0 5.0 115.7 67.0 11.9 7.3 2.0 37.0 12.0 1.2 38.5 1.2 33.1 $24.6 $7.9
54
Mobile Sector Performance as of 11/16/2011

Subsector Relative Performance as of 11/16/2011 Mobile Index -10.2% -15.7% 4.6% S&P 500 Index 5.5% -5.4% 6.7% Dow Jones Industrial Average 6.1% -3.6% 9.7% NASDAQ Composite Index 6.5% -3.5% 8.8% 3-Months 6-Months 1-Year
30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0%
S&P 500 Index
Dow Jones Industrial Average
NASDAQ Composite Index
Mobile Index
Source: CapitalIQ
55
Contact Information
Los Angeles
New York
Hong Kong
Siemer & Associates, LLC Member FINRA/SIPC www.siemer.com

David Siemer
CEO and Managing Director (310) 861-2101 david@siemer.com
Ivan Nikkhoo
Managing Director (310) 861-2106 ivan.nikkhoo@siemer.com
Jonathan Roth
Managing Director (310) 861-2108 jonathan.roth@siemer.com
Martin Lichauco
Managing Director +852 3051 8180 martin.lichauco@siemer.com

Siemer &amp Associates Mobile Report 3rd QTR 2011

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Siemer Mobile Report Q3 2011

Q3 2011 Siemer Mobile Report

Mobile media, including video and gaming, is rapidly growing

Source: Siemer Proprietary Research, Wall Street Research, Chetansharma.com

Q3 2011 Siemer Mobile Report

mDialog Case Study

Q3 2011 Siemer Mobile Report

GoTV Networks Case Study

Q3 2011 Siemer Mobile Report

Pringo Case Study

Q3 2011 Siemer Mobile Report

Transition in Mobile Technology

Closed Application Systems SMS / MMS WAP

Source: Siemer Proprietary Research

Q3 2011 Siemer Mobile Report

Current Array of Mobile Devices

Q3 2011 Siemer Mobile Report

Mobile Operating System Preferences

Q3 2011 Siemer Mobile Report

Market Environment Opportunities

Increased User Adoption

Brands Focusing on Mobile Strategy

Q3 2011 Siemer Mobile Report

Market Environment Challenges

Emergence of Free Content

Q3 2011 Siemer Mobile Report

MOBILE GROWTH STORY

Evolution of Consumer Preferences

600 Global Unit Shipments (mm)

Q3 2011 Siemer Mobile Report

Growth Rate Breakdown

2010A Source: Wall Street Research

Q3 2011 Siemer Mobile Report

Smartphone Market Share Estimates

30.0% Smartphone Market Share

25.0% 24.0% 20.0% 19.0% 15.0% 16.0% 20.0%

Q3 2011 Siemer Mobile Report

Estimated Global Smartphone Penetration Rates

Russia Total = 17%

United States 55% Canada 50% North America Total = 54%

Italy 67% Germany 33% UK 32% Western Europe Total = 49%

Mexico 12% Brazil 2% Latin America Total = 3%

Source: Cisco, Informa Telecoms & Media, Gartner Research

Q3 2011 Siemer Mobile Report

Trends in Mobile App Consumption

U.S. Mobile App Consumption by Category

60 Minutes per Day

Growth of Smartphone vs. Tablet App Downloads (in billions)

22.0 17.1 11.0 1.0

0 Jun-10 Web Consumption Dec-10 Jun-11 Mobile App Consumption

Q3 2011 Siemer Mobile Report

Projected Aggregate Revenues From App Stores

$7.0 Combined Revenues (in billions of $USD)

Q3 2011 Siemer Mobile Report

Social Networks as Catalysts for Mobile Expansion

Source: Company Releases; Compete Analytics; Mobi-Geek

Q3 2011 Siemer Mobile Report

Smartphones Not Just Mobile Communications

Q3 2011 Siemer Mobile Report

Global Mobile Entertainment Spending

Global Mobile Entertainment Sales (in billions of $USD)