09 08 18 Web 2.0 Weekly

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SOFTWARE & SERVICES 18 AUGUST 2009 WEB 2.O WEEKLY DAVID SHORE, CFA, MBA 416.860.6784 [email protected] Arun Thomas (Associate) 416.860.7666 VENTURE CAPITAL EXITS TAKING LONGER SOFTWARE COMPANIES TAKING ABOUT 91 MONTHS TO EXIT A recent research report published by SVB Financial elucidates how difficult it has been for venture capitalists to exit their investment across various sectors. Data combined from Dow Jones Venture Source and SVB measures the time and capital it takes for a venture-backed company to go public, be sold or go out of business. In the software sector, the median exit multiple (calculated as the value of the company at the time of exit divided by the amount of capital invested in the company) since 2001 was 0.0x to 0.1x compared to 3.7x to 10.7x between 1994 and 2001. Moreover, the median time it takes to exit these companies is at an all-time high of 91 months (7.6 years). Total capital raised in August (so far) is $129.4 million: Online gaming company Turbine, Inc. raised $50 million in August – the largest transaction in August. Mint, a vertical community site (offering web-based solutions for financial management), was a distant second raising $14.1 million. Total capital raised in July on 31 transactions was $178.7 million, averaging $5.8 million, and June was $196.1 million (averaging $4.9 million). The average for August, month- to-date so far, is $10 million. Financing Activity Last Twelve Months 16.2 7.0 9.7 7.0 6.5 7.1 6.6 6.2 6.6 5.0 5.6 10.0 10.3 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 (US$m) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 (US$m) Total Average A weak price performance week: Most companies in our universe had a weak stock price performance over the past week (for stocks with prices greater than $1) (Figure 6), with 36 companies showing negative returns on the week. Quepasa Corp. (OTCBB:QPSA) led the group with a 12.0% return, while Spark Networks, Inc. (AMEX:LOV) had the worst return, dropping 23.1% in the week. This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer. www.researchcapital.com Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550

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Transcript of 09 08 18 Web 2.0 Weekly

Page 1: 09 08 18 Web 2.0 Weekly

SOFTWARE & SERVICES 18 AUGUST 2009

W E B 2 . O W E E K L Y

DAVID SHORE, CFA, MBA 416.860.6784 [email protected]

Arun Thomas (Associate) 416.860.7666

VENTURE CAPITAL EXITS TAKING LONGER

SOFTWARE COMPANIES TAKING ABOUT 91 MONTHS TO EXIT A recent research report published by SVB Financial elucidates how diff icult it has been for venture capitalists to exit their investment across various sectors. Data combined from Dow Jones Venture Source and SVB measures the time and capital it takes for a venture-backed company to go public, be sold or go out of business. In the software sector, the median exit multiple (calculated as the value of the company at the time of exit divided by the amount of capital invested in the company) since 2001 was 0.0x to 0.1x compared to 3.7x to 10.7x between 1994 and 2001. Moreover, the median time it takes to exit these companies is at an all-t ime high of 91 months (7.6 years).

Total capital raised in August (so far) is $129.4 million: Online gaming company Turbine, Inc. raised $50 mill ion in August – the largest transaction in August. Mint, a vertical community site (offering web-based solutions for financial management), was a distant second raising $14.1 mill ion. Total capital raised in July on 31 transactions was $178.7 mill ion, averaging $5.8 mill ion, and June was $196.1 mill ion (averaging $4.9 mill ion). The average for August, month-to-date so far, is $10 mill ion.

Financing Activity Last Twelve Months

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A weak price performance week: Most companies in our universe had a weak stock price performance over the past week (for stocks with prices greater than $1) (Figure 6), with 36 companies showing negative returns on the week. Quepasa Corp. (OTCBB:QPSA) led the group with a 12.0% return, while Spark Networks, Inc. (AMEX:LOV) had the worst return, dropping 23.1% in the week.

This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer. www.researchcapi ta l .com

Toronto 416.860.7600 Montreal 514 .399.1500 Vancouver 604.662.1800 Calgary 403.265 .7400 Regina 306.566.7550

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THE WEB 2 .0 UN IVERSE Ninety-one public Web 2.0 companies identified: Our Web 2.0 universe contains 91 companies, with a combined market cap of ~$62 bil l ion (Figure 1). The median market cap for the group is ~$60 mill ion, with average trail ing revenue of ~$159.6 million (median $54.9 mill ion). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a valuation basis, the overall average is 4.8x trail ing revenue (median 1.8x) and 11.0x trail ing EBITDA (median 9.8x). Twenty-one of the companies have more than 500 employees.

C omparable C ompany Analys is > Web 2.0

C ompany Name L TM as of Ticker E xchangeTrading

C urrenc y HQC urrent

P riceUS 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

%TE V/L TM R evenue

TE V/L TM E B ITDA E mployees

Accelerize New Media , Inc. 3/31/2009 AC LZ OT C B B US D United S tates 0. 57 15.8 4.1 (4.4) NM 5. 1x - 11 Actoz S oft C o. , L td. 3/31/2009 A052790 K OS E K R W S outh K orea 21,300 146.0 91. 8 19.9 21.7% 1. 3x 5.9x NA AQ Interactive, Inc. 3/31/2009 3838 T S E J P Y J apan 49,600 28.6 65. 5 4.1 6.3% - - NA As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S tates 0. 01 0. 6 0.1 (2.3) NM 15.6x - 3 B igs tring C orp. 3/31/2009 B S G C OT C B B US D United S tates 0. 02 1. 1 0.1 (2.0) NM 32.4x - 4 B etawave C orporation 3/31/2009 B W AV OT C B B US D United S tates 0. 06 1. 8 8.4 (12.6) NM - - 53 B eyond C ommerce, Inc. 3/31/2009 B Y OC OT C B B US D United S tates 0. 27 12.5 7.1 (9.5) NM 2. 4x - 69 B right T hings plc 9/30/2008 AIM:B G T AIM G B P United K ingdom 0. 01 4. 1 0.3 (1.8) NM 14.9x - 9 B roadW ebAs ia Inc. 9/30/2008 B W B A OT C P K US D United S tates 0. 23 19.5 0.0 (4.6) NM - - 46 C DC C orp. 3/31/2009 C HIN.A Nas daqG S US D Hong K ong 2. 54 269.5 389.9 30.8 7.9% 0. 7x 9.2x 2,227 C hangyou.com Limited 6/30/2009 C Y OU Nas daqG S US D C hina 37. 35 2,054.3 241.2 147. 2 61.0% 7. 4x 12.1x 628 C hina G ateway C orporation 9/30/2008 C G W Y OT C P K US D United S tates 0. 02 0. 3 6.7 (6.6) -98.9% 0. 0x - 37 C hines e G amer International 3/31/2009 G T S M:3083 G T S M T W D T aiwan 412 1,051.6 56. 1 31.4 56.0% 17.6x 31.4x NA C L IC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S tates 0. 01 0. 4 2.5 (1.2) -45.8% 0. 2x - 22 C ornerW orld C orporation 1/31/2009 C W R L OT C B B US D United S tates 0. 06 5. 7 1.3 NM NM 5. 5x - NA C yberplex Inc. 6/30/2009 T S X:C X T S X C AD C anada 2 97.0 88. 1 9.5 10.8% 0. 9x 8.1x NA DADA S pA 6/30/2009 C M:DA C M E UR Ita ly 6. 09 139.0 232.5 30.5 13.1% 0. 8x 6.1x NA DXN Holdings B hd 5/31/2009 DXN K LS E MY R Malays ia 0. 49 31.5 75. 7 10.9 14.4% 0. 6x 4.2x NA Dibz Internationa l, Inc. NA DIB Z OT C P K US D United S tates 0. 00 0. 0 NA NM NM - - NA Digita lP os t Interactive, Inc. 3/31/2009 DG LP OT C B B US D United S tates 0. 05 3. 9 0.7 (2.6) NM 7. 5x - 7 Digita lT own, Inc. 5/31/2009 DG T W OT C B B US D United S tates 1. 30 35.6 NM (2.5) NM - - 3 Dolphin Digita l Media , Inc. 3/31/2009 DP DM OT C B B US D United S tates 0. 39 20.2 0.8 (3.7) NM 27.3x - NA E olith C o. L td. 12/31/2008 A041060 K OS E K R W S outh K orea 820 47.2 14. 6 (3.5) -23.6% 3. 4x - NA E xtens ions , Inc. 3/31/2009 E XT I OT C P K US D United S tates 0. 08 3. 6 NM NM NM - - 2 F luid Mus ic C anada , Inc. 3/31/2009 T S X:F MN T S X C AD United S tates 1. 20 56.8 5.0 (6.9) NM 9. 9x - NA F rogs ter Interactive P ictures AG 12/31/2008 F R G XT R A E UR G ermany 14. 00 49.8 3.2 (6.2) NM 14.9x - NA G amania Digita l E ntertainment C o. , Ltd. 3/31/2009 6180 G T S M T W D T aiwan 56. 70 261.7 125.9 20.9 16.6% 1. 9x 11.4x NA G ameOn C o L td. 6/30/2009 3812 T S E J P Y J apan 103,000 105.5 77. 6 19.0 24.5% 0. 4x 1.8x NA G eoS entric Oyj 3/31/2009 G E O1V HLS E E UR F inland 0. 05 63.2 6.0 (15.4) NM 9. 9x - 108 G iant Interactive G roup, Inc. 3/31/2009 G A NY S E US D C hina 8 1,734.5 218.9 NM NM - - 1,570 G igaMedia Ltd. 3/31/2009 G IG M Nas daqG S US D T aiwan 4. 41 240.4 183.6 NM NM 0. 9x - 751 G ravity C o. , L td 3/31/2009 G R V Y Nas daqG M US D S outh K orea 2. 01 55.9 45. 5 12.5 27.5% - - 469 G ree, Inc. 6/30/2009 T S E :3632 T S E J P Y J apan 7,930 1,880.7 147.8 88.8 60.1% 12.0x 19.9x NA G ungHo Online E ntertainment, Inc. 3/31/2009 3765 OS E J P Y J apan 230,000 279.2 109.2 19.6 18.0% 2. 3x 12.8x NA HanbitS oft, Inc. 3/31/2009 A047080 K OS E K R W S outh K orea 4,125 71.8 54. 9 (14.7) -26.8% 1. 0x - NA IAC /InterActiveC orp. 6/30/2009 IAC I Nas daqG S US D United S tates 18. 40 2,436.2 1,392.3 52.7 3.8% 0. 5x 13.2x 3,200 IAS E nergy, Inc. 1/31/2009 IAS C .A OT C B B US D C anada 0. 12 8. 4 0.0 (0.8) NM - - NA is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 06 2. 8 1.5 (4.9) NM 1. 2x - NA J umbuck E ntertainment P ty Ltd. 12/31/2008 AS X:J MB AS X AUD Aus tra lia 0. 36 14.4 14. 7 5.5 37.2% 0. 6x 1.7x 72 K AB Dis tribution Inc. 3/31/2009 T S X:K AB T S X C AD C anada 1 80.8 74. 2 8.8 11.9% 1. 2x 9.7x NA K ings oft C o. L td. 3/31/2009 3888 S E HK HK D C hina 8 1,182.3 129.0 52.0 40.3% 9. 2x 22.7x 2,271 L ingo Media C orporation 3/31/2009 T S XV : LM T S XV C AD C anada 1. 00 11.2 0.9 (1.6) NM 10.9x - NA L iveW orld Inc. 3/31/2009 LV W D OT C P K US D United S tates 0. 06 1. 7 11. 4 (0.0) -0.4% 0. 1x - NA LookS mart, L td. 6/30/2009 LOOK Nas daqG M US D United S tates 1. 20 20.5 56. 8 (4.4) -7.8% - - 90 Magnitude Information S ys tems Inc. 3/31/2009 MAG Y OT C B B US D United S tates 0. 01 3. 0 0.1 (3.1) NM - - 14 Mixi, Inc. 6/30/2009 2121 T S E J P Y J apan 604000. 00 984.0 129.6 43.7 33.8% 6. 7x 19.9x NA Modern T imes G roup Mtg AB 6/30/2009 MT G B OM S E K S weden 288. 00 2,597.6 1,878.9 288. 7 15.4% 1. 7x 10.9x 2,969 MOK O.mobi L imited 12/31/2008 MK B AS X AUD Aus tra lia 0. 08 5. 3 1.2 (2.4) NM 3. 5x - NA Myriad G roup AG 12/31/2008 MY R N S W X C HF S witzerland 4. 26 84.1 40. 0 0.8 1.9% 2. 3x - 405 NE OW IZ G ames C orporation 12/31/2008 A095660 K OS E K R W S outh K orea 31600. 00 528.5 196.7 52.8 26.8% 2. 6x 9.8x NA NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HK D C hina 6 404.4 86. 9 34.4 39.5% 3. 1x 7.9x 2,426 Neteas e.com Inc. 6/30/2009 NT E S Nas daqG S US D C hina 40. 21 5,204.2 471.9 297. 1 63.0% - - 3,109 NeuL ion Incorporated 3/31/2009 T S X:NLN T S X C AD C anada 1. 10 113.2 18. 1 (11.8) -65.2% 5. 8x - 237 NeXplore C orporation 6/30/2008 NXP C OT C P K US D United S tates 1 37.9 0.7 (6.2) NM - - NA Ngi G roup Inc. 3/31/2009 2497 T S E J P Y J apan 32800. 00 43.0 93. 6 11.2 12.0% 0. 0x 0.2x NA Northgate T echnologies L imited 6/30/2009 590057 B S E INR India 34. 30 24.4 81. 3 (40.6) -50.0% 0. 3x - NA Open T ext C orp. 3/31/2009 OT E X Nas daqG S US D C anada 38. 15 2,007.6 782.6 199. 2 25.5% 2. 6x 10.4x 3,400 Openwave S ys tems Inc. 6/30/2009 OP W V Nas daqG S US D United S tates 2. 80 233.3 191.7 5.3 2.8% 0. 6x 23.4x NA P erfect W orld C o. , Ltd. 6/30/2009 P W R D Nas daqG S US D C hina 36. 15 1,777.9 255.4 142. 0 55.6% 0. 5x 0.8x 2,096 P NI Digita l Media Inc. 3/31/2009 T S XV : P N T S XV C AD C anada 1. 60 49.4 19. 5 0.5 2.3% 2. 5x - NA Quepas a C orp. 3/31/2009 QP S A OT C B B US D United S tates 1 17.8 0.1 (10.8) NM - - 74 OAO R B C Information S ys tems 12/31/2007 R B C I R T S US D R us s ia 1. 05 145.7 146.9 19.2 13.1% 0. 0x 0.2x NA S handa Interactive E ntertainment Ltd. 3/31/2009 S NDA Nas daqG S US D C hina 45. 40 3,031.3 569.9 260. 8 45.8% - - 3,124 S hutterfly, Inc. 6/30/2009 S F LY Nas daqG S US D United S tates 14. 75 375.5 218.6 27.3 12.5% 1. 4x 11.4x 514 S K C ommunications C o. , L td. 12/31/2008 A066270 K OS E K R W S outh K orea 9850. 00 328.0 182.8 11.9 6.5% 1. 8x 27.6x NA S NAP Interactive, Inc. 3/31/2009 S T V I OT C B B US D United S tates 0 4. 3 3.3 0.9 28.0% 0. 9x 3.1x 11 S NM G lobal Holdings 9/30/2008 S NMN OT C P K US D United S tates 0. 00 0. 0 2.0 (0.7) -34.8% 1. 1x - 33 S ocia l Media V enures , Inc. 12/31/2008 S MV I OT C P K US D United S tates 0 0. 0 0.1 (0.1) -60.6% 4. 5x - NA S ocia lwis e, Inc. 3/31/2009 S C LW OT C B B US D United S tates 0. 68 30.1 0.0 (4.8) NM - - NA S ohu.com Inc. 6/30/2009 S OHU Nas daqG S US D C hina 59. 92 2,297.0 485.1 209. 6 43.2% 3. 7x 8.5x 3,197 S park Networks , Inc. 6/30/2009 LOV AME X US D United S tates 2 43.2 50. 5 10.8 21.3% 0. 8x 3.8x 183 S pectrumDNA, Inc. 3/31/2009 S P XA OT C B B US D United S tates 0 11.2 0.1 (2.6) NM - - 7 T encent Holdings L td. 6/30/2009 700 S E HK HK D C hina 115 26,804.0 1,390.1 685. 2 49.3% 21.1x 42.8x 6,194 T he P arent C ompany 8/2/2008 K IDS .Q OT C P K US D United S tates 0. 02 0. 4 112.0 (13.5) -12.0% 0. 2x - 347 T he9 L imited 12/31/2008 NC T Y Nas daqG S US D C hina 8. 28 211.2 250.3 85.4 34.1% - - 1,626 T heS treet.com, Inc. 3/31/2009 T S C M Nas daqG M US D United S tates 2. 24 68.6 67. 0 1.9 2.9% 0. 1x 2.1x 310 T otal S port Online AS 3/31/2006 T OS O OT C NO NOK Norway 0. 03 0. 1 2.2 (1.1) -50.6% 4. 6x - 16 T ree. C om, Inc. 6/30/2009 T R E E Nas daqG M US D United S tates 8. 90 96.1 216.6 (1.0) -0.4% 0. 5x - 700 Unis erve C ommunications C orp. 2/28/2009 T S XV : US S T S XV C AD C anada 0. 05 1. 0 23. 5 0.1 0.2% 0. 2x - NA United Online Inc. 6/30/2009 UNT D Nas daqG S US D United S tates 7. 31 612.9 949.8 203. 2 21.4% 0. 9x 4.3x 1,469 UOMO Media , Inc 1/31/2009 UOMO OT C B B US D C anada 0 10.7 0.6 (0.5) -78.2% 17.4x - NA V a lueC lick Inc. 6/30/2009 V C LK Nas daqG S US D United S tates 10 872.4 563.6 99.0 17.6% 1. 3x 7.4x 1,189 V OIS , Inc. 3/31/2009 V OIS OT C B B US D United S tates 0 4. 1 0.0 (1.1) NM - - 4 W ebzen Inc. 3/31/2009 W ZE N Nas daqG M US D S outh K orea 2. 75 32.6 22. 8 (0.5) -2.4% - - NA W izzard S oftware C orporation 3/31/2009 W ZE AME X US D United S tates 0. 47 23.7 5.6 (5.3) -94.5% 4. 5x - 110 W orlds . com Inc. 3/31/2009 W DDD OT C B B US D United S tates 0. 09 4. 7 0.0 (0.8) NM - - 1 W oozyF ly, Inc. 3/31/2009 W ZY F OT C B B US D United S tates 0. 15 2. 6 NM NM NM - - NA W ynds torm C orporation NA W Y ND OT C P K US D United S tates 0. 10 1. 8 NA NM NM - - NA XING AG 3/31/2009 O1B C XT R A E UR G ermany 27. 50 204.1 53. 3 16.6 31.2% 2. 8x 9.1x 239 Y edangOnline C orp. 12/31/2007 A052770 K OS E K R W S outh K orea 8,870 110.6 54. 5 11.7 21.6% 2. 2x 10.3x NA Y nk K orea Inc. 3/31/2009 A023770 K OS E K R W S outh K orea 4,770 20.2 10. 4 (0.8) -7.6% - - NA

High 26,804.0 1,878.9 685.2 63.0% 32.4x 42.8x 6,194Low 0. 0 0.0 -40.6 -98.9% 0. 0x 0.2x 1Average 688.8 159.6 36.9 6.9% 4.8x 11.0x 913Median 60.0 54.9 0.9 13.1% 1. 8x 9.8x 405 Figure 1. Web 2.0 Universe Summary Source. Capital IQ

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CAPITAL MARKETS ACTIV ITY (M&A AND F INANCING) Total capital raised in August (so far) is $129.4 million: Online gaming company Turbine, Inc. raised $50 mill ion in August – the largest transaction in August. Mint, a vertical community site (offering web based solutions for financial management), was a distant second raising $14.1 mill ion. Total capital raised in July on 31 transactions was $178.7 mill ion, averaging $5.8 mill ion, and June was $196.1 mill ion (averaging $4.9 mill ion). The average for August, month-to-date so far, is $10 mill ion.

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Turbine, Inc. raises $50 million: On the capital raise front, Turbine, Inc. raised $50 mill ion, the largest transaction so far in August. Mint was a distant second securing a $14.1 mill ion round. Closely behind was RichRelevance raising $12.5 mill ion. Of the total 13 transactions, eight were below $10 mil l ion each, bringing the total capital raised for August (thus far) at $129.4 mill ion. In addition, Friends Reunited was acquired for $42 mill ion. For additional details on financings, see Figures 23 and 24 (at end of note).

Financing & M/A Summary - Last Three Months

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Ad Network remains the most active sector in dollars raised: Following recent trends, Ad Networks as a sector saw the most activity in dollars raised ($126.4 mill ion), followed by the Social Network sector with 12 transactions, raising $99.6 mill ion (Figure 4).

Capital Market Activity by Sector - Last Three Months

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

CAPITAL MARKETS ACTIV ITY (PR ICE PERFORMA NCE) Web 2.0 index far outpaces NASDAQ recovery: Our Web 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

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

Figure 5. Web 2.0 Price Performance Source. Capital IQ

Page 6: 09 08 18 Web 2.0 Weekly

Page 6

A weak price performance week: Most companies in our universe had a weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 36 companies showing negative returns on the week. Quepasa Corp (OTCBB:QPSA) led the group with a 12.0% return, while Spark Networks, Inc. (AMEX:LOV) had the worst return, dropping 23.1% in the week.

1 Week P rice P erformance

-23.1%-16.1%

-11.7%-11.4%

-10.7%-9.9%

-9.6%-9.1%

-8.0%-7.8%

-7.5%-7.2%

-6.4%-6.0%

-5.1%-4.6%

-4.3%-4.3%-4.2%-4.0%

-3.4%-3.3%-3.2%-2.9%-2.9%-2.6%-2.6%-2.5%-2.3%-2.2%

-1.7%-0.8%-0.8%-0.7%-0.5%

-0.2%0.0%

1.7%1.9%

2.5%3.0%

3.4%3.5%3.7%3.8%

4.2%6.9%

8.1%12.0%

-25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0%

S park Netw orks , Inc .Webz en Inc .The9 L imited

Neteas e.com Inc .G igaMedia L td.Tree.Com, Inc .

A ctoz S of t Co. , L td.S handa Interactive

V alueClick Inc .CDC Corp.

A Q Interactive, Inc .S hutterf ly , Inc .S ohu.com Inc .

Y edangOnline Corp.Changyou.com Limited

Giant Interactive Group, Inc .Chines e Gamer International

Gravity Co. , L tdHanbitS of t, Inc .LookS mart, L td.

Frogs ter Interactive Pic tures A GPerfect World Co. , L td.

United Online Inc .Cyberplex Inc .Y nk K orea Inc .

TheS treet.com, Inc .Northgate Technologies L imited

S K Communications Co. , L td.Mix i, Inc .

Gamania Digita l Enterta inmentModern Times Group Mtg A BNEOWIZ Games Corporation

Open Tex t Corp.GameOn Co Ltd.

IA C/InterA ctiveCorp.DA DA S pA

Eolith Co. L td.Fluid Mus ic Canada, Inc .

Ngi Group Inc .Gree, Inc .XING A G

Myriad Group A GTencent Holdings L td.

NetDragon WebS oft, Inc .NeuLion Incorporated

K ings oft Co. L td.Openw ave S ys tems Inc .

PNI Digita l Media Inc .Quepas a Corp.

Figure 6. 1-Week Price Performance Source. Capital IQ

Page 7: 09 08 18 Web 2.0 Weekly

Page 7

INDU STRY NEWS (PAR TNER SHIPS , F INANCIAL RESU LTS, NEW PR OD UC TS) K ey DevelopmentsC ompany Headline Notes

OA O R BC Info rm atio n S ys tem s (R TS : RB CI)

V E B F iles S uit W orth R U B 202. 3 Million Against R B C Information S ys tems

V neshec onombank (V E B ) has lodged a s uit aga inst the R B C I nformation S ys tems for the s um of R UB 202. 30 million (E UR 4. 52 million US D 6.41 mi llion) to the Mos cow Arbitration Court. Ac cording to V E B , the laws uit demands to rec over funds on bonds of R B C ac quired by V E B on the stoc k exc hange in 2008.

P erfec t Wo rld C o. , Ltd. (N as daqG S :P W R D)

P erfec t W orld Co. , L td. has filed a S helf R egis tration in the amount of $373. 30 million.

P erfec t W orld Co. , L td. has filed a S helf R egis tration in the amount of $373. 30 million.

P erfec t Wo rld C o. , Ltd. (N as daqG S :P W R D)

P erfec t W orld Co. L td. R eports U naudited C onsolidated E arnings R esults for the S ec ond Quarter E nded J une 30, 2009; P rov ides R evenue G uidanc e for the Third Q uarter of 2009

P erfec t W orld Co. L td. reported unaudited c onsol idated earnings res ults for the sec ond quarter ended J une 30, 2009 . For the quarter, tota l revenues were R MB 521,326, 842 aga inst R MB 334, 412,759 a y ear ago. Operating profit was R MB 279,667, 909 aga ins t R MB 165,957, 778 a year ago. P rofit before tax was R MB 282, 232, 114 aga ins t R MB 169,758, 739 a year ago. N et income was R MB 262,479, 619 aga inst R MB 164,489, 367 a year ago. N et income attributabl e to the c ompany's s hareholders was R MB 262, 585,824 or R MB 0. 99 per diluted s hare aga inst R MB 164, 489,367 R M B 0. 55 per diluted s hare a y ear ago. N et c ash provided by operating ac tiv ities was R MB 326,652, 835 aga i nst R M B 131, 218,948 a year ago. Capita l ex penditure on purchas e of property , equipment, and software was R MB 41,752, 492 aga ins t R MB 511,927, 172 a year ago. N on-G AAP operating profit was R M B 299,957, 997 aga ins t R MB 177,812, 863 a y ear ago. N on-G AAP net income attributable to the c ompany's s hareholders was R MB 282, 875,912 aga inst R MB 176, 344,452 a year ago.

For the third quarter of 2009 the c ompany 's tota l revenues are expec ted to be between R MB 547 million and R MB 563 million, representing

L o okS mart, Ltd. (N as daqG M: LOOK ) LookS mart, L td. Launches P ay P er C lick S earch Advertis ing M odel with Optimal P ricing

LookS mart, L td. announc ed the launch of O ptimal P ric ing: a new initia tive to deliver better performanc e to s earc h advertis ers by s egmenting and pric ing tra ffic ac c ording to that tra ffic's va lue. Optimal P ric ing offers advertisers a unique opportunity to reac h and attract audiences outs ide of the major s earch engines, while managing to meet and exc eed return-on-inves tment (R O I) goa ls . O ptimal P ricing aggregates key word searc h tra ffic on the Look S mart Advertiser Network , and clas si fies performance data s o that the full s pectrum of that tra ff ic is pric ed appropriately ac cordi ng to traffic type, qua lity, and volume. The model relies on information about advertiser campaign objectives and network structure to provide each adve rtis er a chanc e to bid on the most va luable tra ffic a t a ll pric e points . As the c us tomer c as e diagram illustrates , this approac h, when compared to a s imple 'blended pricing' approach more c ommon in the searc h advertis ing industry, a llows advertisers to generate more pa id click s and c onvers ions , and to rea li ze conversions at a lower c ost-per-convers ion.

Open T ext C orp. (N as daqG S :OT E X) Marathon Oil C orporation S elects Open Tex t eDis c overy E arly Cas e Ass es sment

Open T ext C orp. announc ed that Marathon Oi l C orporation has s elected Open T ext eD isc overy E arly C as e As ses s ment, powered by R ec ommind, to prov ide the la tes t in eDis covery c apabilities . T he eD isc overy s olution adds to a c ompany 's broader enterpris e c ontent and records management s trategy. eD isc overy, wi th E CM initia tives , is des igned to improve bus iness proces ses , proac tively manage important records in ac cordanc e with co mpliance, lega l and polic y requirements , and gives employ ees new way s to share bus iness c ontent. T he O pen Text E CM S uite, the c ompany's flagship offering, brings together the broad range of content management c apabilities organiza tions need to sec urely and s a fely manage a ll ty pes of enterprise information-documents, v ita l rec ords, W eb c ontent, video, i mages , email, fo rms and reports -acros s many different enterprise s ys tems and applications . O pen T ext's E CM S uite offers the c ross -enterpris e E CM s olutions cus tomers need as the s trategic importanc e of E CM grows in la rge organiz ations , driven by c ompli ance and the need to c ut c osts.

T heS treet.c om, Inc . (Nas daqG M: T S CM) TheS treet.c om, Inc . announc ed delay ed 10-Q fil ing On 08/11/2009, TheS treet. c om, I nc . announced that they will be unable to file thei r next 10-Q by the deadline required by the S E C.

T heS treet.c om, Inc . (Nas daqG M: T S CM) TheS treet U pdates On D elisting R eview On Augus t 11, 2009, T heS treet. com, I nc. notif ied T he N AS D AQ S toc k Mark et that the Company did not ti mely f ile its Quarterly R eport on Form 10-Q for the quarter ended J une 30, 2009, as a res ult of which the Company is not currently in c ompliance with R ule 5250(c)(1) of the NAS D AQ S toc k Mark et R ules – E qui ty R ules – N AS D AQ L is ting R ules. T he Company has identified an is s ue relating to its rec ording of certa in revenue in P romotions . com, that the Company ac quired in Augus t 2007. T he C ompany currently is as ses sing the impact of this iss ue on the periods sinc e the acquis ition and has not yet determined whether it will be required to res tate any prior period res ults . T he C ompany currently does not believe that this matter is lik ely to res ult in any signific ant percentage revis ion to the aggregate revenue or ex pense previous ly reported by the C ompany s inc e the ac quis ition (a lthough the C ompany c annot give any as s urances with respe ct to this matter as its rev iew is not y et complete) but may result in materia l revi sions upward or downward to the net income reported by the C ompany during

IB 3 N etworks , Inc . (OT CB B:IBN W ) IB 3 N etwork s I nc. Announces C hanges in Certify ing Acc ountant

On Augus t 3, 2009, B oard of D irectors of the I B 3 Network s Inc . dis mis s ed M oore & As soc iates Chartered, its independent registered public acc ount firm. O n the s ame date, Augus t 3, 2009, the ac counting firm of S ea le and B eers , CP As was engaged as the c ompany 's new independent registered public acc ount firm. The B oard of Direc tors of the company and the co mpany 's Audit Committee approved of the dismis sa l of Moore & Ass oc iates C hartered and the engagement of S ea le and B eers , CP A s as its independent auditor.

S NM G lobal H oldings (OTCP K:S N MN ) S NM G lobal H oldings Completes Join t V enture to Develop S oc ia l Media Network

S NM G lobal Holdings announced a joi nt venture with High S peed Magaz ine and its editor 'D J ' Foothill to develop a soc ia l media network and launch an onlin e magazine. T he new entity will be an online soc ia l media community that will inc lude an online maga zine, a rea lity televi sion program, interac tive enterta inment tools and the development of partners hips with other s oc ia l network ing s ites. T he company will launc h an online s ports and enterta inment magazine with emphas is on upcoming athletes and enterta iners. S NM will launc h the online s ite with a limited V IP hard c opy run in the f irs t quarter of 2010. T he joint venture plans to expand to additiona l loc ations , inc luding N ew Y ork, O rl ando, and a site in S outh F lorida to be s elec ted la ter.

S park Networks , Inc . (AME X:L OV) S park N etwork s I nc. R eports Unaudited Cons olidated E arnings R esults for the S ec ond Quarter and S ix M onths E nded J une 30, 2009

S park Network s I nc. reported unaudited cons olidated earnings res ults for the s econd quarter and six months ended J une 30, 2009. For the quarter, the c ompany reported net income of $1, 887,000 or $0.09 basic and diluted earnings per s hare on net revenue of $11, 242,000 compared to net income of $1,641 ,000 or $0. 07 bas ic and diluted earnings per share on net revenue of $14, 987,000 for the s ame period a year ago. O perating inc ome was $ 1,930, 000 and inc ome before inc ome tax es was $3,815, 000 c ompared to operating income of $2,923, 000 and inc ome before inc ome taxes of $3, 147, 000 for the same period a year ago. E B I TD A was $4,321, 000 and adjus ted E B I TD A was $2,553, 000 c ompared to E B IT DA of $3, 581,000 and adjus ted E B I T DA of $4,386, 000 for the same period a year ago. As of June 30, 2009, the company had approximately $7. 8 million of debt outs tanding.

For six months the company reported net income of $2,197, 000 or $0. 11 bas ic and diluted earnings per share on net revenue of $23,274, 000 compared to net income of $3,207 ,000 or $0. 13 bas ic and diluted earnings per share on net revenue of $30, 009,000 for the s ame period a year ago. O perating inc ome was $ 3,138, 000 and inc ome before inc ome tax es was $4,531, 000 c ompared to operating income of $5,400, 000 a

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Page 8

K AB Dis tribution Inc . (TS X: K AB ) K AB Dis tribution Inc . R eports U naudited Cons olidated

E arnings R esults for the S ec ond Quarter and S ix M onths E nded J une 30, 2009

K AB D is tribution I nc . reported unaudited c onsolidated ea rni ngs results for the s ec ond quarter and si x months ended June 30, 2009. F or the quarter, the c ompany reported los s from continuing operations and net los s of CA D 26,450, 000 or CA D 0.19 per bas ic and diluted s hare on revenues of C AD 10, 450,000 compared to los s from continuing operations of C AD 2, 675,000 or C AD 0. 02 per basic and diluted s hare a nd net loss of CAD 2, 546, 000 or CAD 0. 02 per bas ic and di luted share on revenues of C AD 18, 964,000 for the s ame period a y ear ago. T he company reported los s before inc ome taxes of C AD 26,2 76,000 compared to loss before income tax es of CAD 3,449, 000 for the same period a year ago. Net cas h prov ided by operating activities was CAD 1, 105, 000 and purchas e of property , plant and equipment, net of tax credits was CAD 50, 000 c ompared to net cas h prov ided by operating activities of C AD 2, 758,000 and purc has e of property, plant and equipment, net of tax credi ts of C AD 780, 000 for the same period a year ago. The c ompany reported c omprehensive l oss of C AD 7, 208,000 compared to comprehens ive loss of CAD 3, 412,000 for the s ame period a y ear ago.

W ebzen Inc . (KOS E : A069080) W ebzen Inc . P rov ides E arnings G uidanc e for the S econd Quarter and S ix Months E nded J une 30, 2009

W ebzen Inc . provided earnings guidanc e for the sec ond quarter and s ix months ended Ju ne 30, 2009. F or the quarter, the company reported sa les were K R W 6. 2 million aga ins t K R W 7,245 million for the same period a year ago. T he c ompany reported an operating i ncome of K R W 69 million aga inst the operating loss of K R W 4,024 million for the same period a year ago. Los s from continuing operation before corporate income tax was K R W 73 million compared to the los s from continuing operation before corporate inc ome tax of K R W 11, 795 million for the same peri od a year ago. Net loss was K R W 313 million aga ins t net los s of K R W 11, 981 million for the same period a year ago.

For the six months, the company reported s a les were K R W 13, 593 million aga inst K R W 14, 391 million for the s ame period a y ear ago. The company reported an operating inc ome of K R W 1, 974 million against the operating loss of K R W 7,792 million for the same period a year ago. P rofit from c ontinuing operation before corporate inc ome tax was K R W 4, 598 million c ompared to the los s from continuing operation before corporate i ncome tax of K R W 13, 690 million for the s ame period a y ear ago. N et inc ome was K R W 4,043 mill ion aga ins t net los s of K R

OA O R BC Info rm atio n S ys tem s (R TS : RB CI)

OAO R B C I nformation S y stems E lec ts N ew B oard On Augus t 6, 2009 stoc kholders of O AO R B C I nformation S y stems elected a new B oard of Direc tors : G erman K aplun, Alek sandr Morgulc hik, D mitriy B elik , and R B C managers S ergey Lu kin and Artem I nyutin, S ergey K os helenk o, V ladimir E ngels berg, V ladis lav B ess arabov and Timofey G rid nev.

MOK O.mobi Limited (AS X:MKB ); T ris c reen Media G roup

MO K O. mobi L imited announc ed i t will receive AU D 1. 50 million of funding from T ris creen Media G roup and other inves tors .

MO K O . mo bi L imited (AS X : MK B ) announc ed a private placement of 21, 428, 571 s hares at AU D 0.07 per share for gross proceeds of AUD 1,500, 000 with exis ting investor T risc reen Media G roup and s ophisticated inves tors on Augus t 12, 2009. T risc reen M edia G roup wi ll invest for AUD 500, 000 in the transa ction. The c ompany will ac c ept over subs c ription of up to AUD 500, 000.

U nited Online Inc . (Nas daqG S :U NT D) United O nline I nc. , $ 0.10, C ash D ividend, Aug-12-2009 United Online I nc. , $ 0. 10, C ash Div idend, Aug-12-2009

T enc ent Holdings Ltd. (S E H K:700) Tenc ent H oldings L td. Announces Unaudited Cons olidated E arnings R es ults for the S econd Q uarter and F irs t Ha lf E nded J une 30, 2009

Tenc ent Holdin gs L td. announc ed unaudited cons olidated earnings results for the s econd quarter and firs t ha lf ended June 30, 2009. F or the firs t ha lf, the company reported tota l revenues were CN Y 5, 382. 8 million (U S D 787. 9 million), an inc rea se of 77.5% over the f irst ha lf of year ended J une 30, 2008. O perating profit was C NY 2,563. 5 million (U S D 375.2 million), an inc reas e of 70. 6% year over year. N et profit for the period was CN Y 2, 255. 4 million (US D 330. 1 million), an inc rease of 88.9% y ear over y ear. P rofi t a ttributable to equity holders of the c ompany for the period was C NY 2,227. 9 million (US D 32 6.1 millio n), an inc rease of 89. 1% y ear over year.

For the quarter, the company reported tota l revenues were CN Y 2, 878.4 million (U S D 421. 3 million), an increas e of 14.9% c ompared to C NY 2.504. 4 million for the f irst quarter of 2009 or an inc reas e of 79. 9% compared to CN Y 1, 599. 8 million for the sec ond quarter of 2008. Operating profit was C NY 1,398. 9 million (US D 204.8 mil lion), an inc reas e of 20. 1% compared to CN Y 1, 164.6 million in f irst quarter of 2009 or an increas e of 82.8% c ompared to C NY 765.3 million for the same period las t year. P rofit a ttributable to equity hol ders of the c ompany for t

L iveWo rld Inc . (OT CPK :L VWD) L iveW orld Inc . R eports U naudited C onsolidated E arnings R es ults for the S ec ond Quarter and S ix Months E nded June 30, 2009

L iveW orld Inc . reported unaudited c ons olidated earnings res ults for the sec ond quarter and s ix months ended June 30, 2009. F or the quarter, the c ompany reported $2. 3 million in tota l revenues and a net los s of $177,000 for the s ec ond quarter of 2009 c ompared to $3. 1 million in tota l revenues and a net los s of $138, 000 for the sec ond quarter of 2008. T he lower revenues are primarily a ttributed to spending reductions by exis ting c lients due to c urrent ec onomic conditions. Thes e reduc tions were partia lly offset by work from new clients as well as program expans ion by s elec t cl ients . Adjus ted E B I TD A was $49,000 or 2% of tota l revenues for the s econd quarter of 2009 compared to $107,000 or 3% of tota l revenues for the se cond quarter of 2008. T he reduc tion in the company 's Adjusted E B IT DA was due primarily to the reduced tota l revenues for the peri od. Loss before tax was $164,000 compared to $112,000 for the s ame quarter a year ago. N et cas h provided by operating ac tiv ities was $126, 000 compared to net c as h us ed in operating ac tiv ities of $257,000 for the s ame quarter a year ago.

For the six months the company reported net los s of $157 000 or $0 00 per diluted s hare on tota l revenue of $4 9 million c ompared to net lo sK AB Dis tribution Inc . (TS X: K AB ) K AB Dis tribution Inc . P rovides Div idend G uidanc e K AB D is tribution I nc . expec ts to distribute $0.65 in aggregate per c ommon s hare to s hareholders in S eptember 2009.

A c c eleriz e New Media, Inc . (OT CB B: A CL Z)

Acc eleriz e N ew Media Inc . R eports E arnings R es ults for the S econd Q uarter and S ix Months E nded J une 30, 2009 ; R eports G oodwill Impairment C harges for the S eco nd Q uarter and S ix Months of 2009

Acc elerize New M edia I nc . reported earnings res ults for the sec ond quarter and s ix months ended J une 30, 2009. R evenues for the quarter ended J une 30, 2009 inc reased by $374, 960 or 44% to $1,227, 935 from $852, 975 for the quarter ended J une 30, 2008. Net loss for the quarter decreas ed $583,065 or 61% to $374, 020 c ompared to $957, 085 for the sec ond quarter of 2008. F or the three months, net cas h used in operating ac tivities amounted to $192, 925, a dec rease of $337, 294 or 64% from $530,219 for the s econd quarter of 2008.

For the six months ended J une 30, 2009, the c ompa ny reported revenues of $2, 260, 401, an inc reas e of $632, 521 or 39% from $1,627, 880 for the firs t ha lf of 2008. Net los s for the s ix months dec reas ed $566, 829 or 30% to $1,343, 318 compared to $1,910, 147 for the six months ended J une 30, 2008. For the s ix months, net cas h used in operating activities amounted to $490, 994, a dec reas e of $714, 242 or 59% from $1,205, 236 for the firs t ha lf of 2008.

The company rec orded a charge for goodwill impairment of $184, 000 and $531,547 for the three month and si x month period ended June 30, 2009, res pectively , whic h was inc luded in the c ompany 's operating expens es .

Page 9: 09 08 18 Web 2.0 Weekly

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P NI Digital Media Inc . (T S XV:P N) P NI Digita l Media I nc . R eports Un-Audi ted Cons olidated

E arnings R esults for the T hird Quarter and N ine Months E nded J une 30, 2009

P NI D igita l M edia I nc. reported un-audited cons olidated earnings res ults for the third quarter and nine months ended June 30, 2009. F or the quarter, the c ompany reported revenue of C AD 5,443, 760, repres enting an increas e of 29 % over the C AD 4, 217,992 for s ame period in las t year. N et loss was C AD 1,877, 992 or C AD 0.05 per basic and diluted s hare c ompared to net loss of CAD 2, 297,614 or CAD 0. 07 per bas ic and diluted s hare for the same period las t y ear. G AAP net loss from operations for the quarter of CAD 853, 109 compared to CAD 2, 427, 704 for the same period of fis ca l 2008. N on-G AAP a djusted E B I T DA for the quarter was CAD 1, 102, 357, compared to a non-G AA P adjus ted E B IT DA los s of C AD 984,668 in the third quarter of 2008. N on-G AAP adjusted E B IT DA per s hare of CAD 0. 03 compared to a non-G AAP adjusted E B IT DA los s per s hare of CAD 0. 03 in the third quarter of 2008.

For the nine months, the company reported net los s of C AD 2, 412,472 or C AD 0. 07 per basic and diluted s hare on revenue of C AD 17,635, 132 c ompared to net loss of CAD 6, 002,442 or CAD 0. 18 per bas ic and diluted share on revenue of CAD 11, 776,085 fo r the s ame period las t year.

NeuL ion Inc o rpo rated (T S X: NL N) NeuL ion I ncorporated R eports E arnings R es ults for the S eco nd Q uarter and S ix Months E nded June 30, 2009

NeuL ion Inc orporated reported earnings res ults for the s econd quarter and six months ended J une 30, 2009. For the quarter, the company reported revenue was $6. 5 million c ompared to $3. 0 million in the s ame period in 2008, mark ing a y ear over y ear inc rease of 117% . N et los s was $4. 9 million (including $1. 7 million of non-cas h charges ) or $0.04 per share basic and diluted c ompared to $1. 5 million (inc luding $0. 8 million of non-c ash charges) or $0. 04 per s hare bas ic and diluted for the s ame period in 2008.

For six months, the c ompany reported revenue was $13.0 mil lion c ompared to $4. 9 million in the same period in 2008, marking a y ear over year increas e of 165% . Net loss was $10.7 million (inc luding $3.5 million of non-c as h c harges) or $0.10 per s hare ba sic and diluted for compared to $3.0 million (inc luding $1.4 milli on of non-cash c harges) or $0. 07 per s hare bas ic and diluted for the s ame period in 2008. T he revenue and net los s for the three months and six months ended J une 30, 2008 reflect the results of operations of N euL ion U S A the acc ounting ac quirer, prior to the merger between N euL ion US A and N euL ion on Oc tober 20, 2008.

Neteas e. c om Inc . (N as daqG S :NT E S ) Netease. c om I nc. Announc es U naudited Cons olidated F inanc ia l R es ults for the S ec ond Quarter E nded J une 30, 2009

Netease. com Inc . announc ed unaudited cons olidated f inancia l results for the sec ond quarter ended J une 30, 2009. Tota l revenues for the sec ond quarter of 2009 were C NY 872.1 million ($127. 7 million), compared to CN Y 715. 9 million ($104.8 million) for the sec ond quarter of 2008. Net profit a ttributable to shareholders for the sec ond quarter of 2009 tota led C NY 468.1 million ($68. 5 million), compared to CN Y 438. 2 million ($64. 2 million) for the sec ond quarter of 2008. T he c ompany reported basic and diluted earnings per Americ an depos ita ry s hare or ADS of CN Y 3.64 ($0.53) and CN Y 3. 60 ($0. 53) eac h for the s econd quarter of 2009. T he c ompany reported basi c and diluted earn ings per ADS of CN Y 3.62 ($0.53) and CN Y 3. 39 ($0. 50) for the sec ond quarter of 2008. C ash flows generated from operating ac tiv ities tota led C NY 544.4 mi llion ($79. 7 million) for the s econd quarter of 2009, c ompared to C NY 513. 3 million ($75.2 mill ion) for the s ec ond quarter of 200 8. The company reported operating profit of C NY 517. 072 million ($75.703 mil lion), net inc ome before tax of CN Y 583. 471 million CN Y 85.425 million) and diluted per s hare of CN Y 0. 14 ($0.02) compared to operating profit of CN Y 573. 050 million, net income before tax of C NY 578. 174

W izz ard S oftware Co rporatio n (A ME X: WZ E )

W izz ard Media Launc hes L ibs ynP ro 3.0 W izza rd M edia announc ed the ava ilability of L ibs ynP R O 3. 0, a new di gita l media publis hing platform set to fundamentally change online media s yndic ation and monetization forever. L ibsy nP R O 3.0 is now the foundation by which dozens of new publishing options will be ava ilable to c ontent produc ers. This new platform gives media producers the ability to pick and c hoose in an a la c arte fas hion the media sy ndication pack ages s treamlined for their needs. This new platform a lso lays the groundwork for the digita l media publis hing indus try's first 'c lic k-to-build' c ustomized iP hone appl ication. P odc asters will be able to turn their shows into interactive iP hone apps and with standard approva ls , sell them in the iTunes App S tore prov iding a new reve nue s tream to accompany the advertis ing c ampaig ns they c urrently manage th roug h their L ibs ynP R O 3.0 acc ount. The L ibsy nP R O 3. 0 digita l media publis hing s ys tem is bas ed around a c ompletely redes igned publishing engine that is c apable of formatting, trans coding and del ivering content s pecia lly s uited for various des tinations a llowing to strategic a lly dis tribute c ontent to s elected network of publishing des tinations with j ust a few c lic ks .

NeuL ion Inc o rpo rated (T S X: NL N) Neulion I ncorporated R eports Cas h F low and C apita l E xpenditure for the S econd Quarter and S ix Months E nded J une 30, 2009

NeuL ion Inc orporated reported c ash f low and c apita l expenditure for the sec ond quarter and s ix months ended J une 30, 2009. F or the quarter, the c ompany reported c ash used in operating activities was $3,751, 902 aga inst $286, 278 in 2008. T he c ompany spent on purc hase of property , plant and equipment of $149,437 aga ins t $55,216 in 2008.

For the six months, the company reported c ash us ed in operating ac tiv ities was $9, 124,651 aga inst cas h from operations of $99, 129 in 2008. The company s pent on purc has e of property, plant and equipment of $531, 841 aga inst $1, 054, 258 in 2008.

B eyond Co mmerc e, Inc . (OT CB B: B YOC)

B eyond Commerce I nc. P romotes Trevor W illi ams to E xec utive V ice P reside nt, I nternationa l; P rov ides S a les G uidance for the T hird Quarter of 2009

B eyond Commerce Inc . announc ed enhanc ements to its ex ecutive team, i ncluding the promotion of T revor Wi lliams to E xec utive V ic e P resident, I nternationa l.

The company prov ides sa les guidance for the third quarter of 2009. The company antici pates s a les to s teadil y increas e as the company begins ad s a les internationa ll y in the third q uarter of 2009.

W o rlds . c om Inc . (O TCB B: WDDD) W orlds. c om Inc . announc ed delay ed 10-Q filing On 08/14/2009, Wo rl ds. com Inc . announc ed that they will be unable to fil e their nex t 10-Q by the deadline required by the S E C .

IB 3 N etworks , Inc . (OT CB B:IBN W ) IB 3 N etwork s , Inc . announc ed delay ed 10-Q filing On 08/14/2009, IB 3 Network s, Inc . announc ed that they will b e unable to file their nex t 10-Q by the deadline required by the S E C .

B etawave Co rporatio n (OT CB B:B WA V) B etawave Corporation R eports Unaudited Cons olidated E arnings R esults for the S ec ond Quarter and S ix M onths E nded J une 30, 2009

B etawave Corporation reported un audited cons olidated earnings res ults for the s econd quarter and six months ended J une 30, 2009. For the quarter, the c ompany's tota l revenues increas ed 78% to $2, 282,325 from $1,282 ,439 for the s econd quarter of 2008. N et loss was $2,581, 790 or $0. 09 bas ic and diluted per s hare aga inst $3, 562,052 or $0.14 basic and diluted per s hare a year ago.

For the six months, the company reported net cash us ed in operating ac tiv ities was $6, 967,931 aga ins t $2,820, 055 a yea r ago.

W izz ard S oftware Co rporatio n (A ME X: WZ E )

W izz ard S oftware C orporati on R eports E arnings R es ults for th e S ec ond Q uarter E nded J une 30, 2009

W izza rd S oftware C orporation reported earnings res ults for the se cond quarter ended J une 30, 2009. F or the quarter, the c ompany rec orded revenues of $1, 160, 919, a 21% dec rease from revenues of $1, 465, 874 in the s econd quarter of 2008. T he dec reas e for the s ec ond quarter of 2009 reflec ts a decreas e in revenue in hea lthcare and s oftware bus iness s egments due to the ec onomic recess ion, primarily due to a decreas e in s ta ffing revenues within the hea lthc are s ubsidia ry . T he c ompany 's net los s ava ilable to c ommon shareholders was $2, 193,552, or $0. 05 per sh are, in the s ec ond quarter of 200 9, vers us a net loss of $1 998, 225, or $0. 04 per s hare, in the sec ond quarter of 2008. E xc luding a one-time, non-c as h c harge for the exten sion and re-pric ing of warrants, the c ompany's net los s was $1,171, 214 for the sec ond quarter of 2009, or $0.02 per s hare.

F luid Mus ic C anada, Inc . (T S X:FMN) Fluid Mus ic C anada , In c. Announces U naudited Cons olidated E arnings R es ults for the S econd Q uarter and S i x M onths E nded J une 30, 2009

Fluid Mus ic C anada , Inc . announc ed unaudited cons olidated earnings res ults for the sec ond quarter and s ix months ended J une 30, 2009. For the quarter, the company reported net los s and comprehens ive loss of $100,330 or $0.00 per s hare on revenue of $1, 380,717 compared to net los s and c omprehensive los s of $6, 414,393 or $0.17 per s hare on revenue of $1, 053,61 7 for the s ame period a year ago . Loss from operations was $171, 450 c ompared to $3, 131,311 for the s ame period a year ago. Loss before prov is ion for inc ome taxes wad $100, 330 compared to $6,414, 393 for the same period a year ago. Net cas h prov ided by operating activities was $411,928 c ompared to c ash used in operating activi ties of $1, 709, 499 for the s ame period a year ago. Amount spent on purc hase of f ixed ass ets was $345, 961 c ompared to $43,693 for the s ame period a y ear ago.

For the six months, the company reported net los s and comprehens ive loss of $1,799, 361 or $0. 03 per share on revenue of $2,703, 735 compared to net loss and c omprehensive los s of $10, 358,479 or $0.28 per s hare on revenue of $2, 028,474 for the s ame period a y ear ago. Loss from operations was $1,850, 308 c ompared to $6, 813, 765 for the s ame period a year ago. Loss before provis ion for income taxes wad $1

Figure 7. Key Developments Source. Capital IQ

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Page 10

V A LU A TI ON Online Gaming companies lead market-cap charts: Thirteen companies in our Web 2.0 universe top US$1 bil l ion in market capitalization (Figure 8). Fifty-eight of the 91 companies have market caps under US$100 mill ion, with 25 under US$10 mill ion. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over US$20 bil l ion.

Market C ap (US D m)

0.00.00.00.10.30.40.40.61.01.11.71.81.82.62.83.03.63.94.14.14.34.75.35.78.410.711.211.212.514.415.817.819.520.220.220.523.724.428.630.131.532.635.637.943.043.247.249.449.855.956.863.268.671.880.884.196.197.0105.5110.6113.2139.0145.7146.0

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S ocia l Media V enures , Inc .Dibz International, Inc .

S NM G lobal HoldingsTotal S port Online A S

China Gatew ay CorporationThe Parent Company

CLICK ER Inc .A s s oc iated Media Holdings Inc .

Unis erve Communications Corp.B igs tring Corp.L iveWorld Inc .

B etaw ave CorporationWynds torm Corporation

Wooz yFly , Inc .is eemedia Inc .

Magnitude Information S ys tems Inc .Ex tens ions , Inc .

Digita lPos t Interactive, Inc .B right Things plc

V OIS , Inc .S NA P Interactive, Inc .

Worlds .com Inc .MOK O.mobi L imited

CornerWorld CorporationIA S Energy , Inc .

UOMO Media , IncS pectrumDNA , Inc .

L ingo Media CorporationB eyond Commerce, Inc .

Jumbuck Enterta inment Pty Ltd.A cceleriz e New Media , Inc .

Quepas a Corp.B roadWebA s ia Inc .

Dolphin Digita l Media , Inc .Y nk K orea Inc .

LookS mart, L td.Wiz z ard S oftw are CorporationNorthgate Technologies L imited

A Q Interactive, Inc .S ocia lw is e, Inc .

DXN Holdings B hdWebz en Inc .

Digita lTow n, Inc .NeXplore Corporation

Ngi Group Inc .S park Netw orks , Inc .

Eolith Co. Ltd.PNI Digita l Media Inc .

Frogs ter Interactive Pictures A GGravity Co. , L td

Fluid Mus ic Canada, Inc .GeoS entric Oy j

TheS treet.com, Inc .HanbitS of t, Inc .

K A B Dis tribution Inc .Myriad Group A G

Tree.Com, Inc .Cyberplex Inc .

GameOn Co Ltd.Y edangOnline Corp.

NeuLion IncorporatedDA DA S pA

OA O R B C Information S ys temsA ctoz S of t Co. , L td.

XING A GThe9 L imited

Openw ave S ys tems Inc .G igaMedia Ltd.

Gamania Digita l Entertainment Co. , L td.CDC Corp.

GungHo Online Entertainment, Inc .S K Communications Co. , L td.

S hutterf ly , Inc .NetDragon WebS of t, Inc .

NEOWIZ Games CorporationUnited Online Inc .

V alueClick Inc .Mix i, Inc .

Chines e Gamer InternationalK ings of t Co. Ltd.

G iant Interactive Group, Inc .Perfect World Co. , L td.

Gree, Inc .Open Tex t Corp.

Changyou.com L imitedS ohu.com Inc .

IA C/InterA ctiveCorp.Modern Times G roup Mtg A B

S handa Interactive Enterta inment Ltd.Neteas e.com Inc .

Tencent Holdings Ltd.

Figure 8. Market Cap Ranking Source. Capital IQ

Page 11: 09 08 18 Web 2.0 Weekly

Page 11

TEV/Revenue (LTM) averages 4.8x: The overall average TEV/Revenue (LTM) multiple for our group is 4.8x (vs. 5.0x last week) (Figure 9). Two companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 32.4x, followed by Dolphin Digital Media, Inc. (OTCBB:DPDM) at 27.3x. The median is only 1.8x. Note that we exclude multiples greater than 50x. Thirty companies have multiples under 1.5x.

T E V/L T M R evenue (x)

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TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (19), trading at an average multiple of 11.0x (vs. 11.7x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 5.1x revenue (vs. 5.3x last week) (Figure 11). Ten of the companies are Canadian (average 4.7x revenue).

Average TEV/LTM Revenue - By Exchange

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Average TEV/LTM Revenue - By Country

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# Companies

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

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Page 12

TEV/EBITDA (LTM) averages 11.0x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 11.0x LTM EBITDA (vs. 11.1x last week), led by Tencent Holdings (SEHK-700) 42.8x multiple (Figure 12). Twelve companies have EBITDA multiples under 7x. The median multiple is 9.2x (vs. 9.8x last week).

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

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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 (19), trading at an average multiple of 3.1x (vs. 3.1x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 8.6x EBITDA (Figure 14). Ten of the companies are Canadian (average 9.4x EBITDA).

Average TEV/LTM EBITDA - By Exchange

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Average TEV/LTM EBITDA - By Country

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

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P/E (LTM) averages 11.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x) is 11.0x LTM EPS (vs. 10.0x last week), led Tencent Holdings Ltd (SEHK-700) 55.1x multiple (Figure 15). Eleven companies have P/E multiples under 10x. The median is just 12.5x.

P /E L T M (x)

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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 (19), trading at an average multiple of 18.7x. On a geographic basis, the United States has the most companies (39), trading at an average of 15.2x earnings (Figure 17). Ten of the companies are Canadian (average 20.1x EPS).

Average P/E - By Exchange

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

Average P/E - By Country

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UPCO MING EVENTS

E arnings C alendarC ompany Date & Time Quarter C onf C all Details

C DC C orp. (Nas daqG S : C HIN. A) T ues day, Augus t 18, 2009 9: 00 AM (E DT ) Q2 2009 888-603-6873

W izzard S oftware C orporation (AME X: W ZE ) T ues day, Augus t 18, 2009 11: 00 AM (E DT ) Q2 2009 877-407-8035

G iant Interactive G roup, Inc. (NY S E :G A) W ednes day, Augus t 19, 2009 8: 00 AM (E DT ) Q2 2009 866-203-3436

Open T ext C orp. (Nas daqG S : OT E X) T hurs day, Augus t 20, 2009 5:00 P M (E DT ) Q4 2009 416-644-3415

NetDragon W ebS oft, Inc. (S E HK : 777) T ues day, Augus t 25, 2009 9: 00 P M (E DT ) Q2 2009 10-800-130-0399

T he9 L imited (Nas daqG S : NC T Y ) T hurs day, Augus t 27, 2009 9:00 P M (E DT ) Q2 2009 800-561-2693

Figure 18. Earnings Calendar Source. Company reports

Page 15: 09 08 18 Web 2.0 Weekly

Page 15

C omparable C ompany Analys is > Web 2.0P rice P erformance

C ompany Name C urrency Ticker E xchange US D Market C ap ($m) C urrent P rice 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Accelerize New Media , Inc. US D AC LZ OT C B B 15.8 0.57 1.8% 26.7% 14.0% 62.9% -9.5% -13.6%Actoz S oft C o. , L td. K R W A052790 K OS E 146.0 21,300 -9.6% -21.5% 42.0% 78.2% 79.7% -40.8%AQ Interactive, Inc. J P Y 3838 T S E 28.6 49,600 -7.5% -9.8% -5.2% 56.5% -64.2% -65.8%As s ociated Media Holdings Inc. US D AS MH OT C P K 0.6 0.01 -30.0% -30.0% 833.3% 180.0% -30.0% -72.0%B igs tring C orp. US D B S G C OT C B B 1.1 0.02 -24.0% -55.8% -17.4% 18.8% -74.7% -77.6%B etawave C orporation US D B W AV OT C B B 1.8 0.06 -20.0% -47.8% -45.5% -70.0% -80.0% -82.4%B eyond C ommerce, Inc. US D B Y OC OT C B B 12.5 0.27 -10.0% -19.4% -77.5% -40.0% -91.0% -91.7%B right T hings plc G B P AIM:B G T AIM 4.1 0.01 -14.7% -14.7% -14.7% -32.6% -36.0% -48.2%B roadW ebAs ia Inc. US D B W B A OT C P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84.7% -92.1%C DC C orp. US D C HIN.A Nas daqG S 269.5 2.54 -7.8% 17.6% 88.1% 206.0% 1.4% -35.2%C hangyou.com L imited US D C Y OU Nas daqG S 2,054.3 37.35 -5.1% -9.7% 22.7% NM NM -22.8%C hina G ateway C orporation US D C G W Y OT C P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50.0% -57.1%C hines e G amer International T W D G T S M:3083 G T S M 1,051.6 411.50 -4.3% -17.9% 42.4% 279.3% 422.2% -20.7%C LIC K E R Inc. US D C LK Z OT C B B 0.4 0.01 -31.3% -44.4% 37.5% -71.1% -99.2% -99.3%C ornerW orld C orporation US D C W R L OT C B B 5.7 0.06 9.1% 20.0% -33.3% -60.0% -91.9% -92.4%C yberplex Inc. C AD T S X:C X T S X 97.0 1.65 -2.9% 8.6% -7.8% 364.8% 175.0% -17.1%DADA S pA E UR C M:DA C M 139.0 6.09 -0.2% 2.1% 1.7% 1.4% -47.8% -50.8%DXN Holdings B hd MY R DXN K LS E 31.5 0.49 3.2% 24.4% 24.4% 67.2% 24.4% -11.8%Dibz International, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97.6% -97.6%Digita lP os t Interactive, Inc. US D DG LP OT C B B 3.9 0.05 -16.5% 66.7% 214.5% 400.0% -16.7% -49.5%Digita lT own, Inc. US D DG T W OT C B B 35.6 1.30 -13.3% -35.0% -35.0% -35.0% -71.1% -72.6%Dolphin Digita l Media , Inc. US D DP DM OT C B B 20.2 0.39 -2.5% 8.3% -44.3% -20.4% -56.7% -65.5%E olith C o. L td. K R W A041060 K OS E 47.2 820.00 0.0% 5.8% -15.5% 45.1% 16.3% -29.3%E xtens ions , Inc. US D E XT I OT C P K 3.6 0.08 -60.0% 0.0% -46.7% -60.0% -46.7% -92.1%F luid Mus ic C anada, Inc. C AD T S X:F MN T S X 56.8 1.20 1.7% 33.3% 71.4% 135.3% -18.9% -33.3%F rogs ter Interactive P ictures AG E UR F R G XT R A 49.8 14.00 -3.4% 15.7% 66.7% 250.0% 103.5% -9.7%G amania Digita l E nterta inment C o. , L td. T W D 6180 G T S M 261.7 56.70 -2.2% -9.6% 40.3% 161.3% 134.5% -17.6%G ameOn C o Ltd. J P Y 3812 T S E 105.5 103,000 -0.7% -2.8% 12.4% 1.7% -10.4% -32.7%G eoS entric O yj E UR G E O 1V HLS E 63.2 0.05 0.0% 25.0% 0.0% 25.0% -28.6% -28.6%G iant Interactive G roup, Inc. US D G A NY S E 1,734.5 7.68 -4.6% 5.3% -8.9% 27.6% -24.7% -27.8%G igaMedia Ltd. US D G IG M Nas daqG S 240.4 4.41 -10.7% -14.0% -29.2% -36.7% -62.2% -65.4%G ravity C o. , L td US D G R V Y Nas daqG M 55.9 2.01 -4.3% 23.7% 107.2% 187.1% 43.6% -14.1%G ree, Inc. J P Y T S E :3632 T S E 1,880.7 7,930 2.5% 17.0% 46.9% 45.2% NM -4.0%G ungHo O nline E nterta inment, Inc. J P Y 3765 OS E 279.2 230,000 13.9% 15.0% 32.3% 133.3% 17.5% -17.8%HanbitS oft, Inc. K R W A047080 K OS E 71.8 4,125 -4.2% -9.9% -23.5% 8.0% 36.4% -37.9%IAC /InterActiveC orp. US D IAC I Nas daqG S 2,436.2 18.40 -0.5% 9.4% 20.2% 24.3% 6.7% -47.2%IAS E nergy, Inc. US D IAS C .A OT C B B 8.4 0.12 -33.3% 9.1% -55.6% 471.4% -40.0% -57.1%is eemedia Inc. C AD IE E T S XV 2.8 0.06 -14.3% -29.4% -36.8% -33.3% -66.7% -72.7%J umbuck E nterta inment P ty Ltd. AUD AS X: J MB AS X 14.4 0.36 -2.7% -5.3% -14.3% -12.2% -28.0% -41.0%K AB Dis tribution Inc. C AD T S X:K AB T S X 80.8 1 0.0% 1.6% 6.7% 68.4% -15.8% -28.1%K ings oft C o. L td. HK D 3888 S E HK 1,182.3 8 4.2% 30.7% 70.9% 196.1% 205.8% -10.9%Lingo Media C orporation C AD T S XV :LM T S XV 11.2 1.00 -10.7% 0.0% -13.0% 11.1% -44.4% -47.9%LiveW orld Inc. US D LV W D OT C P K 1.7 0.06 -8.3% 57.1% -21.4% 10.0% -78.0% -78.0%LookS mart, L td. US D LO OK Nas daqG M 20.5 1.20 -4.0% 9.1% -11.8% -9.8% -64.4% -64.4%Magnitude Information S ys tems Inc. US D MAG Y OT C B B 3.0 0.01 8.3% -27.8% -35.0% -69.0% -56.7% -78.3%Mixi, Inc. J P Y 2121 T S E 984.0 604,000.00 -2.3% -12.0% 41.1% 48.0% -23.7% -34.4%Modern T imes G roup Mtg AB S E K MT G B OM 2,597.6 288.00 -1.7% 23.3% 22.0% 133.2% -19.4% -22.1%MOK O.mobi L imited AUD MK B AS X 5.3 0.08 15.4% 25.0% 7.1% 87.5% 92.3% -25.0%Myriad G roup AG C HF MY R N S W X 84.1 4.26 3.4% -12.2% -27.2% -7.0% -56.1% -57.3%NE O W IZ G ames C orporation K R W A095660 K OS E 528.5 31,600.00 -0.8% -1.4% -2.0% 82.1% 209.0% -24.8%NetDragon W ebS oft, Inc. HK D 777 S E HK 404.4 5.93 3.7% 3.3% 5.0% 103.8% -8.8% -20.5%Neteas e.com Inc. US D NT E S Nas daqG S 5,204.2 40.21 -11.4% 2.7% 31.5% 110.7% 50.0% -14.3%NeuLion Incorporated C AD T S X:NLN T S X 113.2 1.10 3.8% 15.8% 46.7% 175.0% NM 0.9%NeXplore C orporation US D NXP C OT C P K 37.9 0.68 -2.9% 51.1% -2.9% -28.4% -2.9% -53.1%Ngi G roup Inc. J P Y 2497 T S E 43.0 32,800.00 1.9% 0.5% 10.3% 47.1% -60.4% -74.3%Northgate T echnologies L imited INR 590057 B S E 24.4 34.30 -2.6% 0.0% -28.9% -14.3% -88.2% -89.0%Open T ext C orp. US D O T E X Nas daqG S 2,007.6 38.15 -0.8% 3.3% 19.0% 9.9% 8.4% -5.1%Openwave S ys tems Inc. US D O P W V Nas daqG S 233.3 2.80 6.9% -5.1% 87.9% 197.9% 94.4% -10.5%P erfect W orld C o. , L td. US D P W R D Nas daqG S 1,777.9 36.15 -3.3% 13.9% 80.0% 171.8% 43.0% -13.8%P NI Digita l Media Inc. C AD T S XV :P N T S XV 49.4 1.60 8.1% 3.9% -9.1% -11.6% -53.1% -55.8%Quepas a C orp. US D Q P S A OT C B B 17.8 1.40 12.0% 55.6% 34.6% -0.7% -57.6% -59.5%OAO R B C Information S ys tems US D R B C I R T S 145.7 1.05 0.0% 16.7% 6.6% 238.7% -86.2% -86.6%S handa Interactive E nterta inment Ltd. US D S NDA Nas daqG S 3,031.3 45.40 -9.1% -18.9% -15.6% 48.4% 58.7% -30.2%S hutterfly, Inc. US D S F LY Nas daqG S 375.5 14.75 -7.2% 7.0% 0.5% 81.2% 43.8% -10.8%S K C ommunications C o. , L td. K R W A066270 K OS E 328.0 9,850.00 -2.5% 5.8% 0.5% 32.2% -18.6% -29.6%S NAP Interactive, Inc. US D S T V I OT C B B 4.3 0 100.0% -11.1% -46.7% -59.6% -55.1% -63.0%S NM G lobal Holdings US D S NMN OT C P K 0.0 0.00 -60.0% -71.4% -33.3% 100.0% -99.7% -99.9%S ocia l Media V enures , Inc. US D S MV I OT C P K 0.0 0.19 -13.6% -40.6% 1800.0% -86.6% -24.0% -96.2%S ocia lwis e, Inc. US D S C LW OT C B B 30.1 0.68 -8.1% -15.0% -26.9% 51.1% -71.9% -73.8%S ohu.com Inc. US D S OHU Nas daqG S 2,297.0 59.92 -6.4% -3.4% 8.0% 30.9% -22.5% -25.0%S park Networks , Inc. US D LO V AME X 43.2 2 -23.1% -14.3% -6.7% -10.6% -50.2% -52.9%S pectrumDNA, Inc. US D S P XA OT C B B 11.2 0 0.0% 53.3% -32.4% 130.0% NM -61.7%T encent Holdings Ltd. HK D 700 S E HK 26,804.0 115 3.5% 16.9% 45.0% 149.7% 78.7% -6.2%T he P arent C ompany US D K IDS .Q OT C P K 0.4 0.02 0.0% -48.3% 20.0% -40.0% -99.2% -99.3%T he9 L imited US D NC T Y Nas daqG S 211.2 8.28 -11.7% -2.0% -11.5% -35.1% -57.3% -58.2%T heS treet.com, Inc. US D T S C M Nas daqG M 68.6 2.24 -2.6% 15.5% 17.9% -13.2% -68.0% -69.5%T otal S port Online AS NOK T OS O OT C NO 0.1 0.03 0.0% 0.0% 0.0% -25.0% -40.0% -40.0%T ree.C om, Inc. US D T R E E Nas daqG M 96.1 8.90 -9.9% -8.7% -28.9% 117.1% 11.4% -31.9%Unis erve C ommunications C orp. C AD T S XV :US S T S XV 1.0 0.05 0.0% -35.7% 12.5% -43.8% -82.0% -82.0%United Online Inc. US D UNT D Nas daqG S 612.9 7.31 -3.2% -9.1% 6.6% 50.4% -32.9% -38.0%UOMO Media , Inc US D UO MO OT C B B 10.7 0.13 -16.7% 19.0% -86.1% 56.3% -66.2% -88.2%V alueC lick Inc. US D V C LK Nas daqG S 872.4 10.01 -8.0% -11.3% -6.4% 52.6% -24.1% -27.5%V O IS , Inc. US D V OIS OT C B B 4.1 0.01 -5.7% -28.6% -44.4% -33.3% -66.7% -84.6%W ebzen Inc. US D W ZE N Nas daqG M 32.6 2.75 -16.1% -22.1% -26.7% 100.7% 6.2% -41.2%W izzard S oftware C orporation US D W ZE AME X 23.7 0.47 0.0% -4.1% -21.7% -26.6% -68.2% -72.8%W orlds .com Inc. US D W DDD OT C B B 4.7 0.09 0.0% -35.7% -40.0% -47.1% -70.0% -74.3%W oozyF ly, Inc. US D W ZY F OT C B B 2.6 0.15 0.0% NM 0.0% 0.0% NM -96.3%W ynds torm C orporation US D W Y ND OT C P K 1.8 0.10 0.0% 0.0% 233.3% -16.7% -83.3% -83.3%XING AG E UR O 1B C XT R A 204.1 27.50 3.0% -3.5% -11.3% -7.6% -22.5% -23.6%Y edangOnline C orp. K R W A052770 K OS E 110.6 8,870 -6.0% 11.7% -12.6% 28.7% -4.2% -28.5%Y nk K orea Inc. K R W A023770 K OS E 20.2 4,770 -2.9% -19.2% -38.1% 10.0% -54.4% -61.5%

High 100.0% 650.0% 1800.0% 650.0% 422.2% 0.9%Low -60.0% -71.4% -86.1% -88.0% -99.7% -99.9%Average 688.8 -4.7% 6.6% 42.6% 60.4% -14.2% -49.4%Median -2.8% 0.0% 0.0% 28.7% -30.0% -48.0% Figure 19. Price Performance Source. Capital IQ

Page 16: 09 08 18 Web 2.0 Weekly

Page 16

C omparable C ompany Analys is > Web 2.0Valuation Multiples

C ompany Name S ector C ountryP rimary E xchange Tic ker

US D Market C ap ($m)

TE V/L TM R evenue

TE V/ NTM R evenue

TE V/L TM E B ITDA

TE V/NTM E B ITDA P /L TM E P S P /NTM E P S P /TangB V

Accelerize New Media , Inc. Direct Marketing United S tates OT C B B AC LZ 15. 8 5.1x - - - - - -Actoz S oft C o. , Ltd. G aming S outh K orea K OS E A052790 146. 0 1.3x - 5.9x - 21. 9x - 2.5xAQ Interactive, Inc. G aming J apan T S E 3838 28. 6 - - - - - - 0.4xAs s ociated Media Holdings Inc. Mobile United S tates OT C P K AS MH 0. 6 15. 6x - - - - - -B igs tring C orp. Ins tant Mes s aging United S tates OT C B B B S G C 1. 1 32. 4x - - - - - -B etawave C orporation Media United S tates OT C B B B W AV 1. 8 - - - - - - 0.3xB eyond C ommerce, Inc. S ocia l Network ing United S tates OT C B B B Y OC 12. 5 2.4x - - - - - -B right T hings plc S ocia l Network ing United K ingdom AIM AIM:B G T 4. 1 14. 9x - - - - - -B roadW ebAs ia Inc. S ocia l Network ing United S tates OT C P K B W B A 19. 5 - - - - - - -C DC C orp. G aming Hong K ong Nas daqG S C HIN.A 269. 5 0.7x 0.8x 9.2x 12.3x - - -C hangyou. com L imited G aming C hina Nas daqG S C Y OU 2, 054. 3 7.4x 5.7x 12. 1x 9. 9x 14. 1x 12.6x 13. 9xC hina G ateway C orporation Mobile United S tates OT C P K C G W Y 0. 3 0.0x - - - - - -C hines e G amer Internationa l G aming T aiwan G T S M G T S M:3083 1, 051. 6 17. 6x - 31. 4x - 40. 7x - 15. 3xC L IC K E R Inc. Direct Marketing United S tates OT C B B C LK Z 0. 4 0.2x - - - - - -C ornerW orld C orporation C ontent United S tates OT C B B C W R L 5. 7 5.5x - - - - - -C yberplex Inc. Advertis ing C anada T S X T S X:C X 97. 0 0.9x 0.7x 8.1x 6. 2x 8.9x 10.0x 3.9xDADA S pA S ocia l Network ing Italy C M C M:DA 139. 0 0.8x - 6.1x - - - -DXN Holdings B hd S ocia l Network ing Malays ia K LS E DXN 31. 5 0.6x - 4.2x - 5.3x - 0.7xDibz Internationa l, Inc. S NS Apps United S tates OT C P K DIB Z 0. 0 - - - - - - -Digita lP os t Interactive, Inc. C ontent United S tates OT C B B DG LP 3. 9 7.5x - - - - - -Digita lT own, Inc. S ocia l Network ing United S tates OT C B B DG T W 35. 6 - - - - - - -Dolphin Digital Media , Inc. S ocia l Network ing United S tates OT C B B DP DM 20. 2 27. 3x 1.3x - - - 1. 6x -E olith C o. Ltd. G aming S outh K orea K OS E A041060 47. 2 3.4x - - - - - 4.5xE xtens ions , Inc. C ontent United S tates OT C P K E XT I 3. 6 - - - - - - -F luid Mus ic C anada, Inc. Media United S tates T S X T S X:F MN 56. 8 9.9x 6.6x - - - - 5.5xF rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 49. 8 14. 9x - - - - - 6.9xG amania Digita l E nterta inment C o. , Ltd. G aming T aiwan G T S M 6180 261. 7 1.9x - 11. 4x - 27. 9x - 3.4xG ameOn C o Ltd. G aming J apan T S E 3812 105. 5 0.4x - 1.8x - 11. 1x - 1.3xG eoS entric Oyj Mobile F inland HLS E G E O1V 63. 2 9.9x - - - - - 10. 7xG iant Interactive G roup, Inc. G aming C hina NY S E G A 1, 734. 5 - - - - 1.9x 12.8x 0.3xG igaMedia L td. G aming T aiwan Nas daqG S G IG M 240. 4 0.9x 0.9x - 4. 3x 9.5x 8. 9x 2.0xG ravity C o. , L td G aming S outh K orea Nas daqG M G R V Y 55. 9 - - - - 0.0x - 0.0xG ree, Inc. S ocia l Network ing J apan T S E T S E :3632 1, 880. 7 12. 0x - 19. 9x - 42. 1x - 19. 5xG ungHo Online E nterta inment, Inc. Media J apan OS E 3765 279. 2 2.3x - 12. 8x - - - 39. 0xHanbitS oft, Inc. G aming S outh K orea K OS E A047080 71. 8 1.0x - - - - - 2.2xIAC /InterActiveC orp. Media United S tates Nas daqG S IAC I 2, 436. 2 0.5x 0.5x 13. 2x 4. 1x 11. 5x 35.0x 1.2xIAS E nergy, Inc. V ideo C anada OT C B B IAS C . A 8. 4 - - - - - - -is eemedia Inc. C ontent C anada T S XV IE E 2. 8 1.2x - - - - - 2.3xJ umbuck E nterta inment P ty Ltd. S ocia l Network ing Aus tralia AS X AS X:J MB 14. 4 0.6x - 1.7x - 5.8x - 1.4xK AB Dis tribution Inc. C ontent C anada T S X T S X: K AB 80. 8 1.2x - 9.7x - - - -K ings oft C o. L td. G aming C hina S E HK 3888 1, 182. 3 9.2x - 22. 7x - 26. 6x - 6.4xL ingo Media C orporation Learning C anada T S XV T S XV :LM 11. 2 10. 9x - - - - - 11. 7xL iveW orld Inc. S ocia l Network ing United S tates OT C P K LV W D 1. 7 0.1x - - - - - 0.7xLookS mart, Ltd. Direct Marketing United S tates Nas daqG M LOOK 20. 5 - - - - - - 0.8xMagnitude Information S ys tems Inc. S ocia l Network ing United S tates OT C B B MAG Y 3. 0 - - - - - - -Mixi, Inc. S ocia l Network ing J apan T S E 2121 984. 0 6.7x - 19. 9x - 50. 5x - 6.9xModern T imes G roup Mtg AB Media S weden OM MT G B 2, 597. 6 1.7x 1.6x 10. 9x 12.3x 13. 1x 14.2x -MOK O.mobi L imited S ocia l Network ing Aus tralia AS X MK B 5. 3 3.5x - - - - - 3.9xMyriad G roup AG Mobile S witzerland S W X MY R N 84. 1 2.3x - - - - - 3.8xNE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 528. 5 2.6x - 9.8x - 29. 0x - 14. 7xNetDragon W ebS oft, Inc. G aming C hina S E HK 777 404. 4 3.1x - 7.9x - 14. 5x - 2.2xNeteas e.com Inc. G aming C hina Nas daqG S NT E S 5, 204. 2 - - - - 2.9x 16.2x 0.8xNeuL ion Incorporated V ideo C anada T S X T S X:NLN 113. 2 5.8x - - - - - 6.5xNeXplore C orporation C ontent United S tates OT C P K NXP C 37. 9 - - - - - - -Ngi G roup Inc. Media J apan T S E 2497 43. 0 0.0x - 0.2x - - - 0.9xNorthgate T echnologies L imited Direct Marketing India B S E 590057 24. 4 0.3x - - - - - -Open T ext C orp. C ollaboration C anada Nas daqG S OT E X 2, 007. 6 2.6x 2.4x 10. 4x 8. 1x 31. 3x 14.5x -Openwave S ys tems Inc. Mobile United S tates Nas daqG S OP W V 233. 3 0.6x 0.6x 23. 4x 5. 6x - 35.0x 3.4xP erfect W orld C o. , L td. G aming C hina Nas daqG S P W R D 1, 777. 9 0.5x 2.3x 0.8x 4. 4x 2.5x 11.7x 1.2xP NI Digita l Media Inc. Digita l Imaging C anada T S XV T S XV : P N 49. 4 2.5x 1.8x - 5. 4x - 11.5x 20. 1xQuepas a C orp. S ocia l Network ing United S tates OT C B B QP S A 17. 8 - - - - - - -OAO R B C Information S ys tems Media R us s ia R T S R B C I 145. 7 0.0x - 0.2x - - - -S handa Interactive E ntertainment L td. G aming C hina Nas daqG S S NDA 3, 031. 3 - - - - 2.4x 12.6x 1.0xS hutterfly, Inc. Digita l Imaging United S tates Nas daqG S S F LY 375. 5 1.4x 1.4x 11. 4x 7. 1x - - 2.2xS K C ommunications C o. , L td. S earch S outh K orea K OS E A066270 328. 0 1.8x - 27. 6x - - - -S NAP Interactive, Inc. Dating United S tates OT C B B S T V I 4. 3 0.9x - 3.1x - 6.6x - 2.6xS NM G lobal Holdings Media United S tates OT C P K S NMN 0. 0 1.1x - - - - - -S ocia l Media V enures , Inc. S ocia l Network ing United S tates OT C P K S MV I 0. 0 4.5x - - - - - -S ocia lwis e, Inc. S ocia l Network ing United S tates OT C B B S C LW 30. 1 - - - - - - 38. 3xS ohu.com Inc. G aming C hina Nas daqG S S OHU 2, 297. 0 3.7x 3.2x 8.5x 7. 1x 13. 6x 16.3x 4.5xS park Networks , Inc. S ocia l Network ing United S tates AME X LOV 43. 2 0.8x - 3.8x - 11. 8x - 44. 2xS pectrumDNA, Inc. Media United S tates OT C B B S P XA 11. 2 - - - - - - 29. 3xT encent Holdings L td. P ortal C hina S E HK 700 26, 804. 0 21. 1x - 42. 8x - 55. 1x - 24. 5xT he P arent C ompany Media United S tates OT C P K K IDS . Q 0. 4 0.2x 0.2x - 12.9x - - -T he9 L imited G aming C hina Nas daqG S NC T Y 211. 2 - - - - 2.4x 11.9x 0.1xT heS treet.com, Inc. Media United S tates Nas daqG M T S C M 68. 6 0.1x 0.1x 2.1x - - - 0.9xT ota l S port Online AS Media Norway OT C NO T OS O 0. 1 4.6x - - - - - -T ree. C om, Inc. P ortal United S tates Nas daqG M T R E E 96. 1 0.5x - - 7. 3x - 50.1x 1.2xUnis erve C ommunications C orp. S ocia l Network ing C anada T S XV T S XV : US S 1. 0 0.2x - - - - - -United Online Inc. Media United S tates Nas daqG S UNT D 612. 9 0.9x - 4.3x - - - -UOMO Media , Inc Media C anada OT C B B UOMO 10. 7 17. 4x - - - - - -V alueC lick Inc. Media United S tates Nas daqG S V C LK 872. 4 1.3x - 7.4x - - - 5.7xV OIS , Inc. S ocia l Network ing United S tates OT C B B V OIS 4.1 - - - - - - 14.3xW ebzen Inc. G aming S outh K orea Nas daqG M W ZE N 32. 6 - - - - - - 0.0xW izzard S oftware C orporation P odcas ting United S tates AME X W ZE 23. 7 4.5x - - - - - -W orlds .com Inc. C ontent United S tates OT C B B W DDD 4. 7 - - - - 30. 7x - -W oozyF ly, Inc. S ocia l Network ing United S tates OT C B B W ZY F 2. 6 - - - - - - -W ynds torm C orporation C ontent United S tates OT C P K W Y ND 1. 8 - - - - - - -X ING AG S ocia l Network ing G ermany XT R A O1B C 204. 1 2.8x - 9.1x - 19. 2x - 6.4xY edangOnline C orp. G aming S outh K orea K OS E A052770 110. 6 2.2x - 10. 3x - 11. 8x - 4.1xY nk K orea Inc. G aming S outh K orea K OS E A023770 20. 2 2.8x - - - - - 0.9x

High 26, 804. 0 32. 4x 6.6x 42. 8x 12.9x 55. 1x 50.1x 44. 2xLow 0. 0 0.0x 0.1x 0.2x 4. 1x 0.0x 1. 6x 0.0xAverage 688.8 4.8x 1.9x 11.0x 7.6x 17.5x 17.2x 7.6xMedian 45. 2 2.2x 1.4x 9.2x 7. 1x 12. 5x 12.7x 3.4x

Figure 20. Valuation Comparison Source. Capital IQ

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C omparable C ompany Analys is > Web 2.0S 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 39 C hina 44, 701.2 C hina 4,470. 1 C hina 4,098.7 C hina 1,913.6 C hina 48. 0%

C anada 10 United S tates 5, 079.8 S weden 2,597. 6 United S tates 3,879.1 S weden 288.7 Aus tra lia 37. 2%

C hina 10 J apan 3, 321.0 J apan 553. 5 S weden 1,878.9 United S tates 287.8 T aiwan 36. 3%

S outh K orea 8 S weden 2, 597.6 T aiwan 517. 9 C anada 1,009.1 C anada 198.4 G ermany 31. 2%

J apan 6 C anada 2, 382.0 Hong K ong 269. 5 S outh K orea 663.6 J apan 186.6 J apan 25. 8%

T aiwan 3 T aiwan 1, 553.7 C anada 238. 2 J apan 623.3 S outh K orea 90.2 S weden 15. 4%

Aus tra lia 2 S outh K orea 1, 320.5 S outh K orea 165. 1 Hong K ong 389.9 T aiwan 52.4 Malays ia 14. 4%

G ermany 2 Hong K ong 269.5 R us s ia 145. 7 T aiwan 365.6 Hong K ong 30.8 Ita ly 13. 1%

S witzerland 1 G ermany 253.9 Ita ly 139. 0 Ita ly 232.5 Ita ly 30.5 R us s ia 13. 1%

Hong K ong 1 R us s ia 145.7 United S tates 130. 3 R us s ia 146.9 R us s ia 19.2 Hong K ong 7.9%

F inland 1 Ita ly 139.0 G ermany 126. 9 India 81.3 Malays ia 10.9 S outh K orea 6.4%

Ita ly 1 S witzerland 84.1 S witzerland 84. 1 Malays ia 75.7 G ermany 10.5 S witzerland 1.9%

United K ingdom 1 F inland 63.2 F inland 63. 2 G ermany 56.5 Aus tra lia 3.0 C anada -13.2%

India 1 Malays ia 31.5 Malays ia 31. 5 S witzerland 40.0 S witzerland 0.8 United S tates -14.4%

S weden 1 India 24.4 India 24. 4 Aus tra lia 15.9 Norway -1.1 India -50.0%

R us s ia 1 Aus tra lia 19.8 Aus tra lia 9. 9 F inland 6.0 United K ingdom -1.8 Norway -50.6%

Malays ia 1 United K ingdom 4.1 United K ingdom 4. 1 Norway 2.2 F inland -15.4 United K ingdom #DIV /0!

Norway 1 Norway 0.1 Norway 0. 1 United K ingdom 0.3 India -40.6 F inland #DIV /0!

Grand Total 90 G rand Total 61,991.0 Grand Total 688.8 G rand Total 13,565.5 G rand Total 3,064.4 G rand Total 6.9%

Figure 21. Comparison by Country Source. Capital IQ

C omparable C ompany Analys is > Web 2.0S 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 19 S E HK 28, 390.7 S E HK 9,463. 6 OM 1,878.9 Nas daqG S 1,759.8 S E HK 43. 0%

Nas daqG S 14 Nas daqG S 21, 623.6 OM 2,597. 6 S E HK 535.4 S E HK 771.5 AS X 37. 2%

OT C P K 11 T S E 3, 041.8 NY S E 1,734. 5 Nas daqG S 496.1 OM 288.7 G T S M 36. 3%

K OS E 6 OM 2, 597.6 Nas daqG S 1,544. 5 C M 232.5 T S E 166.9 XT R A 31. 2%

T S E 5 NY S E 1, 734.5 G T S M 656. 6 NY S E 218.9 K OS E 78.2 Nas daqG S 30. 3%

Nas daqG M 5 G T S M 1, 313.3 T S E 608. 4 R T S 146.9 G T S M 52.4 T S E 27. 3%

T S X 4 K OS E 1, 232.0 OS E 279. 2 OS E 109.2 C M 30.5 OS E 18. 0%

T S XV 4 T S X 347.7 K OS E 205. 3 T S E 102.8 OS E 19.6 OM 15. 4%

S E HK 3 OS E 279.2 R T S 145. 7 K OS E 99.2 R T S 19.2 K LS E 14. 4%

AME X 2 Nas daqG M 273.7 C M 139. 0 G T S M 91.0 K LS E 10.9 C M 13. 1%

AS X 2 XT R A 253.9 XT R A 126. 9 Nas daqG M 81.8 XT R A 10.5 R T S 13. 1%

XT R A 2 OT C B B 193.9 T S X 86. 9 B S E 81.3 Nas daqG M 8.5 K OS E 4.4%

G T S M 2 R T S 145.7 S W X 84. 1 K LS E 75.7 AME X 5.5 Nas daqG M 3.9%

S W X 1 C M 139.0 HLS E 63. 2 T S X 46.3 AS X 3.0 S W X 1.9%

HLS E 1 S W X 84.1 Nas daqG M 54. 7 S W X 40.0 S W X 0.8 T S XV 1.3%

C M 1 AME X 66.9 AME X 33. 5 XT R A 28.3 NY S E 0.0 T S X -14.2%

B S E 1 OT C P K 65.8 K LS E 31. 5 AME X 28.1 T S X -0.3 OT C B B -32.0%

NY S E 1 T S XV 64.4 B S E 24. 4 OT C P K 16.6 OT C NO -1.1 AME X -36.6%

OS E 1 HLS E 63.2 T S XV 16. 1 T S XV 11.4 AIM -1.8 OT C P K -41.3%

AIM 1 K LS E 31.5 OT C B B 10. 2 AS X 7.9 T S XV -6.0 B S E -50.0%

OM 1 B S E 24.4 AS X 9. 9 HLS E 6.0 HLS E -15.4 OT C NO -50.6%

R T S 1 AS X 19.8 OT C P K 6. 0 OT C NO 2.2 OT C P K -34.0 AIM #DIV /0!

K LS E 1 AIM 4.1 AIM 4. 1 OT C B B 1.7 B S E -40.6 NY S E #DIV /0!

OT C NO 1 OT C NO 0.1 OT C NO 0. 1 AIM 0.3 OT C B B -62.2 HLS E #DIV /0!

Grand Total 90 G rand Total 61,991.0 Grand Total 688.8 G rand Total 159.6 G rand Total 3,064.4 G rand Total 6.9%

Figure 22. Comparison by Exchange Source. Capital IQ

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F inanc ing - L as t Three Months (US $ m)Month C ompany Name C ountry Angel/S eed P IP E S eries A S eries B S eries C S eries D G rand Total

J un-09 S ugar Inc . US A 16.0 16. 0

Tumri US A 15. 0 15. 0

B oku US A 13. 0 13. 0

W imba US A 12.0 12. 0

G rab Networks US A 12.0 12. 0

AdC hina C hina 10.0 10. 0

G oojet S AS F rance 8. 5 8. 5

E do Interac tive US A 8.0 8. 0

AdMeld Inc . US A 8. 0 8. 0

beeTV US A 8. 0 8. 0

blueK iwi S oftware S A F rance 6. 5 6. 5

Nokeena US A 6. 5 6. 5

B ubble Motion US A 6.0 6. 0

S ens e Networks US A 6. 0 6. 0

Zoos k US A 6. 0 6. 0

G ather US A 5.3 5. 3

MojoP ages US A 5.0 5. 0

Taomee C hina 5.0 5. 0

Animoto US A 4. 4 4. 4

G ameG round Is rael 4.1 4. 1

R ingR evenue US A 3.5 3. 5

C rowdc as t US A 3.0 3. 0

YuMe US A 2.9 2. 9

eR epublik S pain 2.8 2. 8

News er L L C US A 2.5 2. 5

C lic kFuel US A 2.5 2. 5

Inigral US A 2.4 2. 4

AdE x Media US A 2. 3 2. 3

G R OU.P S US A 2.1 2. 1

my6s ens e Is rael 2.0 2. 0

Yapta US A 2. 0 2. 0

OneTXT US A 2.0 2. 0

I L ove R ewards C anada 1. 8 1. 8

C liqs et US A 1.5 1. 5

TodaC ell Is rael 1.0 1. 0

G lubble Netherlands 1. 0 1. 0

AdW hirl US A 1.0 1. 0

L iquidP lanner US A 1.0 1. 0

Mas hL ogic US A 0.5 0. 5

J un-09 Total 53.3 15.3 28.5 67.8 34.0 5.3 204.1

J ul-09 P andora Media US A 35.0 35. 0

K ontera L td. Is rael 15. 5 15. 5

Ning US A 15.0 15. 0

QuickP lay Media C anada 12.0 12. 0

C aus es US A 10. 0 10. 0

Outs park US A 8. 3 8. 3

C onnectE du US A 8. 2 8. 2

Ac quia, Inc US A 8. 0 8. 0

S B Nation US A 8.0 8. 0

MediaMath US A 6.6 6. 6

Metavers um G ermany 6. 3 6. 3

iMemories US A 6. 2 6. 2

Invodo US A 6. 0 6. 0

Quikr India P vt. L td. India 4.1 4. 1

OP E N S ports network US A 4.0 4. 0

S tyleC as ter US A 4.0 4. 0

Nexage US A 4.0 4. 0

TweetDec k UK 3.2 3. 2

B us c a US A 2. 6 2. 6

P rotonMedia US A 2.5 2. 5

Akademos US A 2.5 2. 5

iL oop Mobile US A 2.0 2. 0

C omunitae S pain 1.7 1. 7

Aloqa G ermany 1.5 1. 5

L at49 C anada 1.5 1. 5

Tributes .c om US A 1. 2 1. 2

C oTweet US A 1.1 1. 1

C ellufun US A 1. 0 1. 0

C likthrough US A 1.0 1. 0

C ognitive Match L imited UK 1.0 1. 0

B ookFres h US A 0.5 0. 5

P eople C apital US A 0. 5 0. 5

Mas her Media US A 0.3 0. 3

J ul-09 Total 63.8 11.1 31.8 51.5 27.0 185.2

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Month C ompany Name C ountry Angel/S eed P IP E S eries A S eries B S eries C S eries D G rand Total

Aug-09 Turbine US A 50. 0 50. 0

Mint US A 14. 1 14. 1

R ichR elevance US A 12. 5 12. 5

Traffiq US A 10. 0 10. 0

MediaMath US A 10.0 10. 0

B ill.c om US A 8. 5 8. 5

E do Interac tive US A 8.5 8. 5

B oxee US A 6. 0 6. 0

Z2L ive US A 3. 0 3. 0

K ODA US A 3.0 3. 0

R oblox US A 2.2 2. 2

C hes s C ube S outh Africa 1.3 1. 3

iS yndica US A 0.4 0. 4

Aug-09 Total 25.3 3.0 28.5 22.6 50.0 129.4

G rand Total 142.4 15.3 42.6 128.0 108.1 82.3 518.6

Figure 23. Financing, Last Three Months Source. Company reports

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C ompany Des criptions - C urrent Month C apital Market ActivityC ompany HQ Webs ite Des c ription

B ill.c om United S tates www.bill.com B ill. com, Inc. offers an electronic cas h management s ervice. Its s ervice s implifies the way companies manage bills , invoices , contracts , and other documents . T he company delivers its s ervice through an on-demand S oftware as a S ervice (S aaS ) model. C as hV iew is a W eb-bas ed s ys tem that a llows companies to s tore a ll documents , proces s es , mes s ages , and trans actions in one place. It gives companies a real-time daily view of anticipated cas h flow while s imultaneous ly proces s ing trans actions . T he company was formerly known as C as hV iew, Inc. and changed its name to B ill. com, Inc. in J anuary, 2008. B ill. com, Inc. was founded in 2006 and is bas ed in P a lo Alto, C a lifornia .

B oxee United S tates www.boxee.tv B oxee T V , Ltd. develops media center s oftware. T he company’s s oftware enables its us ers to control media programs s tored in the pers onal computer or the Internet domain, and brings them to the televis ion. It enables its us ers to view, rate, and recommend content to their friends through s ocia l networking features , as well as its s ocia l component a llows s haring with friends . T he company was founded in 2007 and is bas ed in New Y ork, New Y ork .

C hes s C ube S outh Africa www.chesscube.com C hes s C ube, is an online game allowing us ers to play ches s for free and maintain their online ra ting, s ocia lize in chat rooms and invite friends to play ches s . T he company is bas ed in S outh Africa .

E do Interactive United S tates www.edointeractive.net edo interactive, Inc. develops technologies for digita l marketing. T he company focus es on Marketing P latform, a behaviora l ta rgeting and marketing platform that a llows bus ines s es to create micro-ta rgeted marketing campaigns ; monitor the campaign from their computer; target key cons umer groups us ing demographic, geographic, and ps ychographic cons umer information to filter and build targeted campaigns ; and offers demons trable s a les revenue res ults . It offers P rewarding, a tool that gives cas h incentives directly to cons umers in advance of des ired purchas ing behavior through their pre-paid debit Mas terC ard; C as h, a s ys tem that provides cas h rewards to loyal cus tomers ; and MarketIQ, which provides real-time feedback from cus tomers through s urveys and focus group tools . T he company was founded in 2007 and is bas ed in Nas hville, T ennes s ee.

Friends R eunited United K ingdom www.friendsreunited.co.uk F riends R eunited G roup operates as an online community that connects people through a network of friends . It provides an online meeting place for people to s ocia lize, make acquaintances , and find others who s hare their interes ts . T he company a ls o enables members to look up friend’s W eb pages , and s hare photos and videos . In addition, it offers online dating s ervices . T he company is bas ed in the United K ingdom. F riends R eunited G roup operates as a s ubs idiary of IT V plc.

iMemories United S tates www.imemories.com iMemories , LLC provides digita l convers ion and W eb-s haring s ervices for home videos and photos . It offers iMemories Achieve, a s ervice that trans fers home movies , photos , or s lides onto DV Ds ; iMemories online, a s ervice that uploads home movies and photos onto an online pers onal library; and iMemories Movie, a s ervice that converts home videos into cinematic motion pictures and trans fers them onto DV Ds . T he company a ls o provides iMemories S afeS hip K it, a packaging and s hipping s olution; and iMemories gift cards . iMemories , LLC was founded in 2006 and is headquartered in S cotts dale, Arizona.

iS yndic a United S tates www.isyndica.com iS yndica , a cloud-bas ed digita l media dis tribution platform, s implifies online s elling by s yndicating, promoting and tracking us er content on multiple es tablis hed channels . iS yndica ’s Upload Once - S ell E verywhere™ approach helps us ers increas e revenue while reducing their workload. B uilt on Amazon W eb S ervices (AW S ), our V irtual Dis tribution S erver (V DS ) is a groundbreaking, patent pending, multi-category s oftware-as -a-s ervice (S aaS ) dis tribution platform. iS yndica currently s upports photography and video.

K oda United S tates www.koda.us K ODA was founded with a mis s ion to create a platform that a llows emerging ta lent and s mart companies to go beyond the res ume or traditiona l job pos ting. More profes s ional than F acebook but more pers ona l than L inkedIn, K ODA looks to s howcas e profiles and employer profiles that a llow both s ides of the hiring equation to get to know each other.

Mint United S tates www.mint.com Mint S oftware, Inc. provides a W eb-bas ed s olution for online financia l management. It offers money management, debt management, expens e tracking, inves tment management, budget management, mutual fund, IR A management, and financia l planning s ervices . T he company a ls o provides s ugges tions bas ed on us er’s s pending patterns and automatic categorization of purchas es . Mint S oftware, Inc. was founded in 2006 and is bas ed in Mounta in V iew, C alifornia .

R ichR elevance United S tates www.richrelevance.com richrelevance, Inc. provides pers onalization and product recommendation tools for the eC ommerce s ites . It offers R ichrecs , which offers product recommendations to pers onalize cus tomer's s hopping experience; myrecs that engages loya l s hoppers with a pers onalized page of relevant product recommendations ; and richmail, which enables cros s -s elling and up s elling of relevant products . richrelevance, Inc. was founded in 2005 and is headquartered in S an F rancis co, C alifornia . It has locations in S an Diego, C alifornia ; Dallas and Hous ton, T exas ; and New Y ork , New Y ork .

R oblox United S tates www.roblox.com R oblox C orporation develops online gaming s oftware. R oblox C orporation was founded in 2004 and is bas ed in P ortola V alley, C alifornia .

Traffiq United S tates www.traffiq.com T R AF F IQ , Inc. , a dis play advertis ing marketplace, operates a digita l media management platform that connects buyers and s ellers of online media . Its platform provides a s uite of enterpris e tools that enables negotia tions for deal points and centra lized advertis ing operations , including tra fficking, inventory management, tracking and optimization, and billing. T he company’s pla tform incorporates components of the media planning, buying, and s elling proces s , including s ite s earch, inventory packaging tools , negotia tion management, order execution, automated R F P dis tribution, campaign optimization, and publis her reconciliation/invoicing. It s erves advertis ers and publis hers . T he company was founded in 2006 and is bas ed in New Y ork, New Y ork with an additional office in V ienna, V irginia .

Turbine Inc . United S tates www.turbine.com T urbine, Inc. , an interactive media company, engages in developing, launching, and operating online enterta inment in North America . It offers online games , including multiplayer online role-playing games . T he company operates s ocia l gaming communities . It a ls o s ells its games through reta ilers in North America and E urope. T urbine, Inc. was formerly known as T urbine E nterta inment S oftware C orp. T he company was founded in 1994 and is headquartered in W es twood, Mas s achus etts .

Z2L ive United S tates www.z2live.com Z2Live, a mobile multiplayer gaming platform, was formed to leverage the new capabilities of mobile devices , the s eamles s flow between mobile and W eb communities and the advent of cons umer-focus ed marketplaces . T he company was founded in 2009 by Damon Danieli, a 14-year Micros oft veteran, David B luhm, a long time veteran of mobile content and enterta inment and Madrona V enture G roup, a S eattle-bas ed venture capita l firm. Z2L ive’s mis s ion is to enable multiplayer gaming acros s a ll mobile devices and a ll wireles s networks .

Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase

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In format ion about Research Cap i ta l Corpora t ion ’s Rat ing Sys tem, the d is t r ibut ion o f our research to c l ients and the percentage o f recommendat ions wh ich a re in each of our ra t ing categor ies is ava i lab le on our web s i te a t www. researchcap i ta l . com.

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