European Technology Media & Telecommunications Monitor

Market and Industry Update Second Quarter 2012

Piper Jaffray European TMT Team:

Eric Sanschagrin Managing Director Head of European TMT [email protected] +44 (0) 207 796 8420

Stefan Zinzen Principal [email protected] +44 (0) 207 796 8418

Varun Verma Associate [email protected] +44 (0) 207 796 8416

Peter Shin Analyst [email protected] +44 (0) 207 796 8444 TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update Selected Piper Jaffray Q2 2012 TMT Transactions

A – M&A Transactions

Date: May 2012 $206,000,000 Client: NEXX Systems Inc. Appointment: Sale to Tokyo Electron Ltd. Transaction: Tokyo Electron (“TEL”), a Japan-based developer of semiconductor production Has Been Acquired By equipment, announced the completion of its acquisition of NEXX Systems (“NEXX”) for $206 million. The acquisition will expand TEL’s position in advanced packaging to include electrochemical deposition and physical vapor deposition systems that have won awards for outstanding performance, low cost of ownership, development flexibility and their extendibility to future May 2012 applications. Client Description: NEXX is a global leader in advanced semiconductor packaging equipment with focused solutions for back-end wafer level processing. PJC Role: Piper Jaffray acted as sole financial adviser to NEXX Systems.

Date: April 2012 $1,400,000,000 Client: Stratasys Inc. Appointment: Merger with Objet Ltd. Transaction: Stratasys and privately held Objet announced that the boards of directors of both companies unanimously approved a definitive merger agreement under which the companies would Has Merged with combine in an all-stock transaction with a total equity value of approximately $1.4 billion. The transaction will position the combined company as a leader within the high-growth 3D printing and direct digital manufacturing industry. Under the terms of the agreement, Stratasys will merge with a April 2012 subsidiary of Objet, and Stratasys stockholders will receive one share of the new combined company for each share of Stratasys common stock they own. Upon closing of the transaction, Stratasys shareholders are expected to own 55% and Objet shareholders are expected to own 45% of the combined company on a fully diluted basis. Client Description: Stratasys is a maker of additive-manufacturing machines for prototyping and producing plastic parts. The company markets under the brands uPrint and Dimension 3D Printers and Fortus Production 3D Printers. PJC Role: Piper Jaffray served as exclusive financial advisor to Stratasys and rendered an opinion, from a financial point of view, as to the fairness of the exchange ratio provided for in the merger.

2 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update Selected Piper Jaffray Q2 2012 TMT Transactions

A – M&A Transactions (cont’d)

Date: April 2012 Undisclosed Client: EduNeering (“kaplaneduneering.com”) Appointment: Sale to Underwriters Laboratories Inc. Transaction: Underwriters Laboratories (“UL”) acquired 100% of the capital stock of EduNeering Has Been Acquired By from Kaplan Inc. Knowledge Services. UL's fast-growing training, advisory and software solutions business unit will integrate EduNeering's team of 85 employees, its technology platform and a course library of 700 online training modules, which also includes energy operations, manufacturing, ethics, environmental health and safety, engineering and construction, and food April 2012 safety. Client Description: EduNeering develops technology-enabled knowledge solutions for assuring regulatory compliance and improving business performance. PJC Role: Piper Jaffray acted as sole financial adviser to EduNeering.

3 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update Selected Piper Jaffray Q2 2012 TMT Transactions

B – Capital Market Transactions

Date: May 2012 $16,000,000,000 Client: Facebook Inc. Appointment: IPO Transaction: Facebook completed a $16.0 billion initial public offering of 421.2 million shares of common stock at $38 per share. The company updated its filing for an IPO with the U.S. Securities and Exchange Commission for the seventh time by revising its IPO price range from IPO $28-$35 to $34-$38. But investors expecting a first-day pop in the price saw it close just 0.6% above the IPO price at $38.23. May 2012 Client Description: Facebook is a social networking company that allows users to connect and communicate with each other. It enables developers to build applications and integrate them with Facebook, and offers advertisers the ability to engage with users. PJC Role: Piper Jaffray acted as co-underwriter for the offering.

Date: May 2012 $122,000,000 Client: Web.com Group Inc. Appointment: Follow-on Transaction: Web.com closed a $122.0 million follow-on offering of 8.0 million shares of common stock, priced at $15.25 per share. The issuer will not receive any proceeds from the offering as the transaction is 100% secondary. Follow-On Client Description: Web.com is a leading provider of online marketing for small- to medium-sized businesses, providing global domain name registration and complementary Web site design and May 2012 management services. PJC Role: Piper Jaffray acted as co-underwriter for the offering.

4 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update Contents

1. Internet and Digital Media A. Trading Update B. Transaction Update C. Industry News D. Public Market Trading Multiples

2. Software and IT Services A. Trading Update B. Transaction Update C. Industry News D. Public Market Trading Multiples

3. Communications Technology & Hardware A. Trading Update B. Transaction Update C. Industry News D. Public Market Trading Multiples

4. Equity Capital Markets and M&A Update

5 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

A - Trading Update

Sub-sector performance – Last Three Months: Sub-sector performance – Last 12 Months: Sector 3M Sector LTM

Online Retail 8.8% Global Internet Leaders 17.9% Vertical Market Places - Real Estate 1.9% Vertical Market Places - Real Estate 17.9% Global Internet Leaders (0.5)% Online Gambling 6.7% Online Travel (1.6)% Online Retail 6.1% Chinese Internet Leaders (6.6)% Online Travel 0.4% Online Gambling (10.4)% Online Content (6.3)% Online Content (15.0)% Chinese Internet Leaders (8.3)% Vertical Marketplaces - Employment Other Vertical Market Places (16.5)% Services (26.8)% Vertical Marketplaces - Employment Services (28.6)% Online Marketing / Advertising (37.2)% Online Marketing / Advertising (30.3)% Other Vertical Market Places (38.7)% DJIA (2.5)% DJIA 3.8% NASDAQ Comp (3.3)% NASDAQ Comp 5.8% S&P 500 (5.1)% S&P 500 3.1%

Note: For composition of indices, see Public Market Trading Multiples section

Top 5 Price Performers – Last Three Months: Top 5 Price Performers – Last 12 Months:

Company % change Company % change

Expedia 43.8% Hotel.de 121.2% Overstock.com 31.9% 888 Holdings 84.1% Web.com 26.6% Expedia 76.3% Orbitz 19.7% Sportech 52.2% Amadeus IT 18.0% Web.com 48.3%

Top 5 Price Underperformers – Last Three Months: Top 5 Price Underperformers – Last 12 Months: Company % change Company % change Tradedoubler (45.7)% Netflix (73.9)% Sedo Holdings Plc (43.5)% Blinkx (66.0)% Netflix (40.5)% Travelzoo (64.9)% AD Pepper Media (34.1)% Ctrip.com (61.1)% Blinkx (33.2)% Marchex (59.3)%

Source: Thomson Reuters 6 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European ECM Transactions – Q2 2012

Offering Target Amount Offering Date Target Location ($MM) Deal Type Description Target Description 20-Jun-2012 Funcom NV Netherlands 10 Follow-On Common Stock Develops and publishes multi-player online games 07-May-2012 Eniro AB Sweden 59 Follow-On Preference Shares Offers search services and directory assistance 16-Apr-2012 Zattikka plc UK 21 IPO Common Stock Online and mobile gaming company that develops a range of social network games 05-Apr-2012 Progressive Digital Media UK 32 Follow-On Common Stock Focuses on the B2B space providing web-based Group plc information products and online digital marketing Number of Deals 4 Average Value ($MM) 30 Total Value ($MM) 121 Note: Offerings over $10 million where the issuer is headquartered in Europe

Selected European M&A Transactions – Q2 2012

Deal Trans. Multiples Target Acquirer Value EV / EV / Date Target Location Acquirer Location ($MM) Sales EBITDA Target Description 28-Jun-2012 paysafecard.com Austria Skrill Holdings Ltd UK 175 N/A N/A Prepaid online payment solutions Wertkarten AG 08-Jun-2012 Allproperty Media Pte Ltd Singapore ImmobilienScout GmbH Germany 47 N/A N/A Operates a real estate Website (42% stake) 04-Jun-2012 Grupa Onet SA Poland Ringier Axel Springer Switzerland 272 3.8x 9.5x Provides Internet advertising and Media AG ecommerce services 02-Jun-2012 Ratioform Holding Germany Takkt AG Germany 261 2.5x 9.3x Offers business-to-business direct GmbH marketing 01-Jun-2012 Moneysupermarket.com UK MoneySavingExpert.com UK 134 5.5x 6.9x Operates a journalistic money website Group plc Ltd that provides money saving guides 22-May-2012 Ariba Inc US SAP AG Germany 4,300 8.6x N/M Provides collaborative business commerce solutions 16-May-2012 RunningBall Holding AG Switzerland Perform Group plc UK 155 7.5x 16.7x Provides real-time sports data 13-May-2012 The Leisure Pass Group UK Primary Capital Ltd UK 56 1.3x 6.6x Creates and manages smart card pass Ltd systems for the tourism industry 07-May-2012 LeGuide.com SA France Lagardere SCA France 72 2.0x 5.6x Publishes online shopping guides and develops comparison websites 04-Apr-2012 Totaljobs Group Ltd UK Axel Springer AG Germany 175 N/A N/A Online recruitment services Median 3.8x 8.1x Mean 4.4x 9.1x Number of Deals 10 Average Value ($MM) 565 Total Value ($MM) 5,648

Note: M&A transactions over $40 million where either party is headquartered in Europe

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 7 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European Private Equity and Venture Capital Activity – Q2 2012

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 21-Jun-2012 KupiVIP Russia 38 Intel Capital Online shopping portal Accel Partners Acton Capital Partners Balderton Capital European Bank of Reconstruction 19-Jun-2012 Lifealike Ltd UK 12 Canaan Partners High-end online marketplace where users can rent out luxury Index Ventures houses and flats PROFounders Capital 12-Jun-2012 yd. yourdelivery GmbH Germany 20 Macquarie Capital Group Offers an online based food order platform for individuals Deutsche Investitions-und and enterprises Entwicklungsgesellschaft mbH DuMont Venture Holding Moraún Investments SA Mountain Super Angel BCM Bruker Capital Management Rheingau Ventures 08-Jun-2012 Westwing Home & Living GmbH Germany 50 Summit Partners Owns and operates an online furniture shopping club Access Industries Inc Holtzbrinck Ventures Gmbh Investment AB Kinnevik Rocket Internet GmbH 31-May-2012 Iglu.com Ltd UK 30 Growth Capital Partners Online holiday site 18-May-2012 Notonthehighstreet Enterprises Ltd UK 16 Fidelity Growth Partners Operates a shopping Website Greylock Partners Index Ventures 10-May-2012 MedicAnimal Ltd UK 10 Balderton Capital Operates as an online pet supplies retailer Iris Capital 13-May-2012 Livebookings Ltd UK 24 Balderton Capital Online restaurant reservations and marketing network Ekstranda company Wellington Partners 03-May-2012 Fiverr International Ltd Israel 15 Accel Partners Online platform where micro-entrepreneurs market their Bessemer Venture Partners skills 02-May-2012 Avito.ru Russia 75 Accel Partners Online classified ads site Baring Vostok Capital Partners Investment AB Kinnevik Northzone Ventures 30-Apr-2012 La Fourchette SA France 11 Partech International Provides online restaurant reservation services Serena Capital 29-Apr-2012 Just-Eat Ltd UK 64 Vitruvian Partners Operates a portal for ordering takeaway meals online Greylock Partners Index Ventures Redpoint Ventures 23-Apr-2012 IJM Enterprises Ltd UK 12 Augmentum Capital Online retailer of bathroom products Dawn Capital 19-Apr-2012 mySupermarket Ltd UK 10 W PP plc Operates an online shopping site that allows users to Greylock Partners compare prices and shop from the main online retailers in Pitango Venture Capital the UK 12-Apr-2012 Viadeo SA France 32 Allianz Specialized Operates a social networking website focusing on Investments professionals in Europe, China, and South America Fonds Stratégique d'Investissement IDInvest Partners Jefferies Group Ventech

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 8 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European Private Equity and Venture Capital Activity – Q2 2012

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 03-Apr-2012 AppchiMedia Ltd Israel 14 Accel Partners Develops and publishes digital social games for Entrée Capital smartphones and social networks Founder Collective 02-Apr-2012 Delivery Hero Holding GmbH Germany 33 Holtzbrinck Ventures Online food ordering platform Kite Ventures ru-Net Ventures Team Europe Ventures Tengelmann Ventures 01-Apr-2012 Funding Circle Ltd UK 16 Index Ventures Operates an online marketplace that helps small businesses Union Square Ventures to find finance

Number of Deals 18

Average Value ($MM) 27

Total Value ($MM) 481

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 9 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

C - Industry News

Three-quarters of top CEOs shun social media 12 July 2012, written by StrategyEye The majority of CEOs at top U.S. companies are failing to embrace social media, according to new figures claiming that 70% of Fortune 500 managers have no presence on social networks. The research, co-led by CEO.com and data firm Domo, indicates that while more than half the U.S. population is now registered on Facebook, a paltry 7.6% of CEOs polled say they have joined the social network. Twitter is even less popular, with only 4% of those surveyed signed up for the microblogging service, compared to around one-third of U.S. consumers. Domo head Josh James says CEOs will start to endanger their relationships with customers if uptake of social media does not increase.

‚Social media isn’t a passing fad," says James in a blog post. "The primary reason you have to be social is because that is where your customer lives. Even if you are not leveraging it to close business and interact with your customers, you have to spend enough time online to at least understand the shift in the world.‛

Global Internet ad spend up 12.1% 10 July 2012, written by StrategyEye Internet ad spend grew 12.1% year-on-year in first quarter 2012, outpacing all other media, according to a recent Nielsen report. Although all media types except magazines grew during the quarter, Nielsen describes the global growth of online ads as a "bright spot" for the quarter and particularly noticeable in Europe, with spend up 12.1% year-on-year, Latin America at 31.8% and the Middle East and Africa at 35.2%.

Internet ad spend was one of the only media types to grow in a number of regions. Though the biggest in terms of ad dollars, TV saw its highest growth in the Middle East at a "whopping" 33.8%, but remained relatively flat in saturated markets such as the U.S. at 4%, and just 2.8% globally.

Nielsen attributes the overall rise in ad spend, up 3.1% globally in Q1 this year, to rising consumer and brand confidence, though economic troubles in Europe and political instability in the Middle East were potential drags on growth. While Europe was strong for Internet ad growth, it actually saw an overall decline in ad spend of 1.4% and was the only region to experience a drop. However, this decline was more than compensated for by growing ad spend in emerging markets, with Latin America up 9.6%.

Social networks attracted USD8.5 billion in funding since 2010 19 June 2012, written by StrategyEye Social networking has attracted billions in venture funding over the last two years, with investment totalling some USD8.3 billion across 800 deals since the start of 2010, according to new figures from Preqin. The private equity data firm says that venture capitalists ‚bet big‛ on social networks in recent years, boosted by strong growth from the likes of LinkedIn, Zynga and Facebook. Aggregated deal value was highest in Q1 2011, when Facebook raised USD1.5 billion and Zynga brought in USD485 million in funding. Early-stage investments accounted for just over a fifth of funding activity, while Series A rounds stood at 21% and Series B at 12%. The top five investments all took place in the U.S., suggesting that up-and-coming tech clusters such as Berlin and London are still failing to attract heavyweight investor interest.

More than 90% of Internet users in Europe visit news sites 1 June 2012, written by StrategyEye More than nine in ten Internet users in Europe visit news sites, according to the Interactive Bureau Europe (IAB Europe) Mediascope Europe survey. IAB Europe found that 426.0 million Europeans (65%) go online every week, each spending an average of 14.8 hours browsing the Web.

More than a third of Europeans (37%) go online using multiple devices, boosted by the growing ownership of Internet-connected devices such as smart phones and tablets, according to the report. Although 64% access the Internet from a computer, this figure is expected to fall as consumers increasingly browse the mobile Internet. Research online before making purchases is carried out by 96% of Internet-using Europeans and 87% make purchases online.

U.K. digital music revenues surpass physical for the first time 31 May 2012, written by StrategyEye Digital music revenues overtook physical for the first time in the U.K. in the first quarter of this year, accounting for more than half of the industry’s revenues, according to a new report from the BPI. The figures show that digital made up 55.5% of the U.K. record industry’s income, with revenues up 23.6% year-on-year to reach GBP86.5 million. That growth in digital services, which includes subscription ad-funded streaming offerings, offset a drop in revenues from physical and fuelled an overall 2.7% growth in industry revenues, which came to GBP155.8 million in the quarter. Physical revenues fell 15.1% to GBP69.3m signalling the continuing shift from formats such as the CD towards services such as Spotify, Rdio and Deezer in the U.K.

Despite the positive news, independent analyst Mark Mulligan sounds a note of caution about the timing of the growth and the likelihood of this continuing in the longer term. While digital revenues surpassing physical for the first time is an important milestone for the industry, Mulligan suggests that much of the growth may be due to seasonal factors, rather than signalling a long-term trend.

10 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

C - Industry News

Europe online ad spend tops USD24.7 billion 30 May 2012, written by StrategyEye Online ad spend in Europe hit EUR20.9 billion (USD24.7 billion) in 2011, up 14.5% year-on-year, driven by the growth of newer formats such as video as well as access to data for more targeted ads, according to new research from the IAB. The report claims one in five Euros spent on advertising in the region is now spent online, with this margin expected to widen as device penetration continues to grow.

Video commands a ‚significant‛ portion of online ad spend, representing 8.2% of overall ad spend last year, according to the IAB. Mobile remains a relatively small segment of spending, with many marketers still grappling with the medium. Although marketing on smart phones and tablets accounted for between 1% and 3% of spend, the medium is growing rapidly, up 45.6% year-on-year.

Online ad growth is outpacing the overall ad market in Europe, which grew less than 1% in the same period, indicating that marketers are gradually allocating bigger budgets to digital campaigns across the Web and mobile, as they chase consumer eyeballs to smart phones and tablets.

CEOs see social media as key for customer engagement over next five years 23 May 2012, written by StrategyEye CEOs are seeing social media as increasingly important for boosting customer satisfaction, with more than half expecting it to become one of the primary methods for engaging with consumers within the next five years, according to IBM's latest CEO study. Surveying more than 1,700 CEOs from around the world, the report finds that company chiefs are placing considerably greater importance on social media, predicting that 57% of customer interactions will take place via social in five years' time, up from just 16% today. That represents a 256% increase and would make it the most important communication channel between companies and customers behind face-to-face interaction, and ahead of Web sites, call centres and channel partners.

Google ultimatum 21 May 2012, written by Piper Jaffray The European Commission (EC) has provided Google with a deadline to settle its antitrust issues or face formal proceedings. The EC’s concerns centre on four areas: whether Google prevented advertising from competing search engines, whether it provided its search results preferential treatment over other players, whether it restricted portability of AdWords ad campaign, and whether it scraped content from competing search engines and presented it as its own results.

Should Google refuse to compromise and settle with the EC, it faces formal charges that could lead to fines of up to 10% of global revenues. However, the EC proposed it would take a ‚commitment decision‛, providing Google creates a proposal that eases their concerns.

M&A deals drop 55% while IPOs are on the rise 17 May 2012, written by StrategyEye The number of M&A deals taking place in the online sector plummeted 55% in the first quarter of 2012 compared with the same period last year, according to data collected by PricewaterhouseCoopers (PwC). Though M&A deals in the wider tech sector have also dropped by 10%, PwC found that the cumulative value of deals taking place has risen, meaning that firms that do commit to deals pick up higher prices. IPO activity climbed in 2011, up 27% on 2010, and continues to do so in the first quarter of this year, according to PwC.

Facebook most popular ad tool among small U.K. businesses 15 May 2012, written by StrategyEye Facebook is now the most popular tool for small businesses in the U.K. looking to win customers, with 36% using the site to pull in new business, ahead of local directories, print ads, online ads, Twitter and trade magazines, according to a new report from BaseKit. Business directories such as the Yellow Pages fall into second place, with 27% of small firms using them to win new customers, followed by print ads at 21%, online ads at 20%, Twitter at 17% and trade publications at 14%. Although Twitter remains some way behind Facebook, the site is quickly gaining momentum among businesses and is almost as popular as online ads. "Small businesses are shifting their marketing to lower-cost media like Facebook and Twitter and away from legacy media like the directories," says BaseKit co- founder, Simon Best. "They tell us that one-to-one marketing is their most efficient and most successful way of generating new business—the fact that Facebook has become the number one source of new business within just a few years of its creation is remarkable."

11 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

C - Industry News

Just 10% of U.K. consumers willing to pay for online content 9 May 2012, written by StrategyEye Only 10% of U.K. consumers are willing to pay for content online, according to new research from the IAB and ValueClick, indicating a hurdle still facing content producers looking to monetise on the Internet. The report, which surveyed 2,000 U.K. consumers, claims that half of respondents are happy to view online ads as it means that they are able to consume content for free. The stats support the decision taken by some content providers to offer ad-supported content rather than placing content behind a paywall or premium subscription.

The challenge is arguably biggest for traditional print publishers aiming to successfully monetise their content online. While some publishers, such as the Financial Times and The Wall Street Journal, have placed their content behind a paywall, others including U.K. titles the Daily Mail and the Guardian, have opted to generate digital revenues from ads. Paywalls have experienced mixed success, with the Times’ traffic plunging 59% after it implemented one in 2011.

Meanwhile, consumers appear to flock to Web sites that offer free content, with the Daily Mail becoming the world’s most popular online newspaper at the end of 2011, with 45.3 million visitors in December, according to comScore.

U.K. digital book sales up 54%, but fail to offset print declines 2 May 2012, written by StrategyEye The rising popularity of e-book readers such as Amazon’s Kindle is spurring growth in the digital book market, with revenues from e-books, digital downloads of audio books and online subscriptions increasing by 54% last year in the U.K. to GBP243 million (USD393 million). The figures, from the Publishers Association’s (PA) Statistics Yearbook 2011, show that consumer e-book sales saw the highest growth, with revenues up a huge 366% last year to GBP92 million (USD149 million). The report will come as welcome news to book publishers struggling to manage the shift from print to digital, with the figures suggesting that consumer appetite for e-books in particular is on the rise. Nevertheless, digital books continue to make up just a tiny proportion of the overall market, with growth in the sector failing to offset the decline in the print space.

Internet Explorer still gaining market share 1 May 2012, written by Piper Jaffray Data provided by Netmarketshare suggests that Internet Explorer has increased its market share for the third time in the past four months. Internet Explorer increased its share from a low of 51.9% (in December 2011) to 54.1% (in April 2012). Other major browsers have lost market share over this period, though the differences are very slight. For example, Firefox dipped from 21.8% to 20.2% and Google’s Chrome slipped from 19.1% to 18.6%. Microsoft attributes the improvement in market share to the success of Windows 7.

Hardware sales fell 38% year-on-year from USD324 million to USD199.5 million in January, with producers suffering from competition with free-to-play mobile games such as Rovio's Angry Birds. Poor performance in the video games sector follows disappointing holiday spending in December, traditionally the busiest time of the year for physical sales, when turnover dropped 21% year-on-year.

Facebook buys $550 million patent defence from Microsoft 23 April 2012, written by Piper Jaffray Facebook has agreed to acquire a portfolio of 650 Web technology patents from Microsoft for $550 million to bolster its defences against a torrent of intellectual property lawsuits. The transaction will see Microsoft recycle part of the intellectual property rights it agreed to acquire from AOL just two weeks ago.

The purchase will enable Facebook to build stronger legal foundations as it diversifies its business across further parts of the Internet business. Its failure to bolster its defences was exposed when Yahoo! filed a patent infringement suit in February.

More than a fifth of the U.S. still offline 16 April 2012, written by StrategyEye Some 22% of the U.S. population does not use the Internet, with the majority of those remaining offline falling into an older demographic. The stats from the Pew Research Center indicate that American Internet usage patterns are shifting, with smart phones and social networks being more of a factor than traditional dividing lines such as gender or race. The ubiquity of smart phones and sites such as Twitter or Facebook among the younger population means that they are considerably more likely to be connected than older generations, although Pew does note a considerable uptake among so-called "silver surfers". Some 41% of those over 65 use the Internet, versus just 12% in 2000.

12 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

D - Public Market Trading Multiples

Sto ck F ully D iluted F ully D iluted F ully D iluted R evenues EBITDA P rice M arket Enterprise EV / Revenue EV / EBITDA P/E R evenues CAGR EBITDA M argin C o mpany Lo cal 29-Jun-12 C ap Value D ec-12 D ec-13 D ec-12 D ec-13 D ec-12 D ec-13 D ec-12 D ec-13 11-13 D ec-12 D ec-13 D ec-12 C urrency(Lo cal C cy)(USD m) (USD m) (USD m) (USD m) (USD m) (USD m) Global Internet Leaders M icrosoft USD 30.59 257,669 208,828 2.7x 2.5x 6.4x 5.9x 10.6x 9.7x 77,352 83,310 7.7% 32,585 35,303 42.1% Google USD 580.07 191,305 147,444 4.2x 3.5x 7.7x 6.5x 13.4x 11.3x 35,513 42,492 20.9% 19,028 22,527 53.6% Amazon.com USD 228.35 102,877 97,162 1.5x 1.2x 40.2x 24.9x NM 85.3x 63,326 81,404 30.1% 2,417 3,908 3.8% Facebook USD 31.10 74,413 71,824 14.6x 11.1x 26.9x 19.9x 57.3x 41.3x 4,906 6,482 32.2% 2,672 3,605 54.5% Ebay USD 42.01 54,892 51,106 3.7x 3.2x 11.3x 9.9x 17.9x 15.5x 13,997 16,071 17.4% 4,521 5,180 32.3% Yahoo USD 15.83 19,357 17,321 3.9x 3.8x 11.9x 10.8x 16.4x 14.7x 4,490 4,614 2.6% 1,454 1,599 32.4% M ean 5.1x 4.2x 17.4x 13.0x 23.1x 29.6x 33,264 39,062 17.8% 10,446 12,021 36.4% M edian 3.8x 3.3x 11.6x 10.3x 16.4x 15.1x 37.3% Online Retail Amazon.com USD 228.35 102,877 97,162 1.5x 1.2x 40.2x 24.9x NA 85.3x 63,326 81,404 30.1% 2,417 3,908 3.8% Ebay USD 42.01 54,892 51,106 3.7x 3.2x 11.3x 9.9x 17.9x 15.5x 13,997 16,071 17.4% 4,521 5,180 32.3% Groupon USD 10.63 7,040 5,883 2.5x 1.9x 16.0x 8.3x 58.7x 16.3x 2,398 3,075 37.6% 367 709 15.3% M ercadolibre USD 75.80 3,347 3,192 8.3x 6.5x 23.5x 18.0x 35.0x 26.8x 384 491 28.1% 136 177 35.3% Asos GBP 17.75 2,366 2,336 2.3x 1.7x 23.0x 17.3x 39.9x 29.4x 1,031 1,366 32.4% 102 135 9.9% Vistaprint USD 32.30 1,217 1,291 1.1x 0.9x 8.8x 7.3x 16.1x 12.7x 1,140 1,362 21.5% 147 177 12.9% Shutterfly USD 30.69 1,139 995 1.7x 1.5x 10.0x 7.8x NM 61.2x 583 669 18.9% 100 127 17.1% Web.com USD 18.27 968 1,666 3.4x 3.1x 11.5x 10.1x 12.8x 9.9x 490 531 50.6% 145 165 29.5% YOOX EUR 11.30 810 802 1.7x 1.4x 18.5x 14.1x 45.4x 33.0x 471 589 26.4% 43 57 9.2% Digital River USD 16.62 615 267 0.7x 0.6x 3.1x 2.7x 12.5x 11.0x 406 433 4.3% 87 100 21.5% Blue Nile USD 29.71 413 352 0.9x 0.8x 17.8x 15.8x 41.3x 35.8x 390 427 10.8% 20 22 5.1% Overstock USD 6.91 162 107 0.1x 0.1x 5.5x 4.0x 68.6x 16.9x 1,110 1,165 5.1% 19 26 1.7% M ean 2.3x 1.9x 15.8x 11.7x 34.8x 29.5x 7,144 8,965 27.5% 675 899 16.1% M edian 1.7x 1.4x 13.8x 10.0x 37.5x 21.8x 14.1% Vertical marketplaces - Employment services LinkedIn Corp USD 106.27 10,978 10,357 11.5x 7.8x 56.8x 33.6x NM 77.5x 902 1,334 59.8% 182 309 20.2% 51Job Sponsored USD 45.55 2,660 2,310 9.9x 8.4x 28.6x 23.5x 36.8x 30.6x 233 276 15.6% 81 98 34.8% Seek AUD 6.34 2,191 2,520 5.2x 4.5x 11.9x 10.3x 15.4x 12.9x 486 564 19.6% 213 244 43.7% M onster Worldwide USD 8.31 1,008 969 1.0x 0.9x 6.4x 5.6x 27.6x 19.7x 988 1,025 (0.9%) 152 174 15.4% Dice USD 9.39 647 592 3.0x 2.7x 7.5x 6.7x 16.3x 13.8x 197 219 10.5% 79 88 40.2% Xing EUR 46.00 323 254 2.6x 2.3x 8.1x 6.8x 21.8x 17.1x 96 108 14.6% 31 37 32.5% M ean 5.5x 4.4x 19.9x 14.4x 23.6x 28.6x 484 588 20.5% 123 159 31.1% M edian 4.1x 3.6x 10.0x 8.6x 21.8x 18.4x 33.6% Vertical marketplaces - Real Estate Rightmove GBP 15.92 2,732 2,698 15.4x 13.7x 21.3x 18.7x 29.3x 25.7x 175 197 13.7% 126 144 72.1% Rea Group AUD 13.71 1,848 1,692 5.6x 5.0x 12.2x 10.5x 19.8x 17.0x 303 339 13.3% 139 161 45.9% M ove USD 9.09 369 278 1.4x 1.3x 10.2x 8.5x 30.1x 21.5x 197 209 4.5% 27 33 13.8% M ean 7.5x 6.7x 14.6x 12.6x 26.4x 21.4x 225 249 10.7% 98 112 43.9% M edian 5.6x 5.0x 12.2x 10.5x 29.3x 21.5x 45.9% Other vertical marketplaces M oneysupermarket Com GBP 1.25 1,036 981 3.1x 2.8x 10.6x 8.9x 16.2x 13.6x 315 345 10.9% 93 110 29.4% Webmd Health 'A' USD 20.51 1,032 690 1.4x 1.3x 6.6x 6.0x NM NM 502 526 (3.0%) 105 115 20.8% Ehealth USD 16.11 341 225 1.5x 1.3x 13.3x 10.8x 53.4x 40.1x 155 169 5.6% 17 21 10.9% M eetic EUR 10.33 302 260 1.2x 1.1x 5.4x 5.0x 9.7x 8.8x 224 231 1.2% 49 52 21.7% M utuionline EUR 2.86 143 124 2.2x 1.6x 9.5x 4.9x 17.1x 8.6x 57 75 (7.2%) 13 25 22.8% M ean 1.9x 1.7x 9.1x 7.1x 24.1x 17.8x 251 269 1.6% 55 65 21.1% M edian 1.5x 1.3x 9.5x 6.0x 16.7x 11.2x 21.7% Online Travel Priceline.com USD 664.52 34,307 30,871 5.6x 4.6x 15.4x 12.2x 21.2x 16.8x 5,470 6,701 24.0% 2,010 2,537 36.7% Amadeus IT Holding EUR 16.70 9,461 11,695 3.3x 3.1x 8.5x 7.9x 13.7x 12.7x 3,588 3,784 5.1% 1,376 1,474 38.3% TripAdvisor USD 44.69 6,634 6,840 8.9x 7.4x 20.5x 16.9x 32.8x 26.6x 770 921 20.2% 334 404 43.3% Expedia USD 48.07 6,555 5,913 1.6x 1.4x 7.8x 7.0x 16.9x 14.8x 3,814 4,200 10.3% 754 844 19.8% Ctrip.com USD 16.76 2,487 1,719 2.6x 2.2x 9.8x 7.2x 19.0x 14.6x 666 792 19.4% 176 240 26.4% HomeAway USD 21.74 1,894 1,672 5.9x 4.9x 20.6x 16.2x 44.4x 31.4x 282 343 22.1% 81 103 28.7% Wotif Com AUD 4.21 915 757 5.0x 4.6x 8.6x 7.8x 14.9x 13.6x 152 165 7.9% 88 97 58.0% Orbitz USD 3.65 380 632 0.8x 0.7x 4.7x 4.2x 14.0x 9.4x 811 868 6.4% 134 149 16.5% Travelzoo USD 22.72 365 316 2.0x 1.8x 8.0x 7.3x 14.9x 13.5x 157 175 8.6% 39 44 25.0% Hotel De EUR 26.50 126 114 1.9x 1.7x 42.9x 31.0x 78.2x 52.6x 60 69 15.0% 3 4 4.5% M ean 3.8x 3.2x 14.7x 11.8x 27.0x 20.6x 1,577 1,802 14.4% 499 589 29.7% M edian 2.9x 2.6x 9.2x 7.9x 17.9x 14.7x 27.6% Online M arketing / Advertising Valueclick USD 16.39 1,342 1,340 1.9x 1.7x 6.1x 5.4x 14.4x 12.3x 696 778 17.9% 218 247 31.3% Velti USD 6.28 667 686 2.4x 1.8x 8.2x 6.0x 13.7x 9.3x 292 391 43.8% 83 115 28.6% M archex 'B' USD 3.61 134 93 0.6x 0.6x 4.8x 4.0x 14.0x 10.1x 144 160 4.4% 19 24 13.3% Hi M edia EUR 2.00 116 155 0.5x 0.5x 5.9x 4.9x 9.4x 7.6x 291 323 5.4% 26 31 9.0% Tradedoubler SEK 16.90 105 66 0.2x 0.2x 4.0x 3.4x 10.0x 8.1x 384 405 (2.7%) 16 20 4.3% Sedo Holding AG EUR 1.83 71 43 0.2x 0.2x 4.8x 4.2x 22.7x 10.0x 174 177 6.1% 9 10 5.1% AD Pepper M edia EUR 0.90 26 19 0.3x 0.2x NM 19.7x NM NM 76 82 7.3% (1) 1 (1.7%) M ean 0.9x 0.7x 5.7x 6.8x 14.0x 9.5x 294 331 12.1% 53 64 12.8% M edian 0.5x 0.5x 5.4x 4.9x 13.8x 9.6x 9.0% Online Content M ail Ru Group USD 33.89 7,070 6,919 10.2x 7.9x 19.9x 15.2x 28.9x 21.9x 680 877 31.6% 348 455 51.2% Yandex NV USD 19.05 6,384 6,067 6.4x 4.7x 13.9x 10.3x 22.7x 16.8x 951 1,280 43.4% 435 590 45.8% Zynga USD 5.44 4,595 3,533 2.4x 2.0x 8.2x 6.2x 19.8x 14.5x 1,448 1,755 23.2% 428 569 29.6% IAC/Interactivecorp USD 45.60 4,191 3,619 1.4x 1.2x 7.3x 6.3x 16.0x 13.1x 2,668 2,960 19.9% 494 577 18.5% Netflix USD 68.48 3,884 3,480 1.0x 0.8x 29.6x 10.8x NM 32.8x 3,621 4,178 14.2% 118 321 3.3% AOL USD 28.08 2,689 2,449 1.2x 1.2x 7.0x 6.9x 38.2x 35.0x 2,113 2,087 (2.7%) 351 355 16.6% Pandora M edia USD 10.87 2,105 2,025 4.9x 3.4x NM NM NM NM 412 593 50.2% (12) 13 (2.9%) Ancestry.com USD 27.53 1,273 1,225 2.6x 2.3x 7.7x 6.6x 17.6x 14.1x 466 526 14.8% 159 185 34.2% Demand M edia USD 11.20 991 895 2.6x 2.2x 9.2x 7.9x 33.6x 26.2x 350 401 13.3% 98 113 27.9% Realnetworks USD 8.64 303 145 0.5x 0.5x NM 57.7x NM NM 275 270 (10.3%) (20) 3 (7.2%) Blinkx USD 0.64 236 197 1.4x 1.1x 15.5x 7.6x 30.5x 14.7x 145 185 34.6% 13 26 8.8% XO Group USD 8.87 233 165 1.2x 1.1x 9.1x 7.5x 31.9x 24.3x 134 144 7.6% 18 22 13.5% M ean 3.0x 2.4x 12.7x 13.0x 26.6x 21.3x 1,105 1,271 16.3% 203 269 19.9% M edian 1.9x 1.6x 9.1x 7.6x 28.9x 19.3x 17.6%

(1) All figures in USD millions

Source: Thomson Reuters, company filings, updated as of 30 June 2012 13 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

D - Public Market Trading Multiples

Stock Fully Diluted Fully Diluted Fully Diluted Revenues EBITDA Price Market Enterprise EV / Revenue EV / EBITDA P/E Revenues CAGR EBITDA Margin Company Local 29-Jun-12 Cap Value Dec-12 Dec-13 Dec-12 Dec-13 Dec-12 Dec-13 Dec-12 Dec-13 11-13 Dec-12 Dec-13 Dec-12 Currency (Local Ccy) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) Global Internet Leaders Microsoft USD 30.59 257,669 208,828 2.7x 2.5x 6.4x 5.9x 10.6x 9.7x 77,352 83,310 7.7% 32,585 35,303 42.1% Google USD 580.07 191,305 147,444 4.2x 3.5x 7.7x 6.5x 13.4x 11.3x 35,513 42,492 20.9% 19,028 22,527 53.6% Amazon.com USD 228.35 102,877 97,162 1.5x 1.2x 40.2x 24.9x NM 85.3x 63,326 81,404 30.1% 2,417 3,908 3.8% Facebook USD 31.10 74,413 71,824 14.6x 11.1x 26.9x 19.9x 57.3x 41.3x 4,906 6,482 32.2% 2,672 3,605 54.5% Ebay USD 42.01 54,892 51,106 3.7x 3.2x 11.3x 9.9x 17.9x 15.5x 13,997 16,071 17.4% 4,521 5,180 32.3% Yahoo USD 15.83 19,357 17,321 3.9x 3.8x 11.9x 10.8x 16.4x 14.7x 4,490 4,614 2.6% 1,454 1,599 32.4% Mean 5.1x 4.2x 17.4x 13.0x 23.1x 29.6x 33,264 39,062 17.8% 10,446 12,021 36.4% Median 3.8x 3.3x 11.6x 10.3x 16.4x 15.1x 37.3% Online Retail Amazon.com USD 228.35 102,877 97,162 1.5x 1.2x 40.2x 24.9x NA 85.3x 63,326 81,404 30.1% 2,417 3,908 3.8% Ebay USD 42.01 54,892 51,106 3.7x 3.2x 11.3x 9.9x 17.9x 15.5x 13,997 16,071 17.4% 4,521 5,180 32.3% Groupon USD 10.63 7,040 5,883 2.5x 1.9x 16.0x 8.3x 58.7x 16.3x 2,398 3,075 37.6% 367 709 15.3% Mercadolibre USD 75.80 3,347 3,192 8.3x 6.5x 23.5x 18.0x 35.0x 26.8x 384 491 28.1% 136 177 35.3% Asos GBP 17.75 2,366 2,336 2.3x 1.7x 23.0x 17.3x 39.9x 29.4x 1,031 1,366 32.4% 102 135 9.9% Vistaprint USD 32.30 1,217 1,291 1.1x 0.9x 8.8x 7.3x 16.1x 12.7x 1,140 1,362 21.5% 147 177 12.9% Shutterfly USD 30.69 1,139 995 1.7x 1.5x 10.0x 7.8x NM 61.2x 583 669 18.9% 100 127 17.1% Web.com USD 18.27 968 1,666 3.4x 3.1x 11.5x 10.1x 12.8x 9.9x 490 531 50.6% 145 165 29.5% YOOX EUR 11.30 810 802 1.7x 1.4x 18.5x 14.1x 45.4x 33.0x 471 589 26.4% 43 57 9.2% Digital River USD 16.62 615 267 0.7x 0.6x 3.1x 2.7x 12.5x 11.0x 406 433 4.3% 87 100 21.5% Blue Nile USD 29.71 413 352 0.9x 0.8x 17.8x 15.8x 41.3x 35.8x 390 427 10.8% 20 22 5.1% Overstock USD 6.91 162 107 0.1x 0.1x 5.5x 4.0x 68.6x 16.9x 1,110 1,165 5.1% 19 26 1.7% Mean 2.3x 1.9x 15.8x 11.7x 34.8x 29.5x 7,144 8,965 27.5% 675 899 16.1% Median 1.7x 1.4x 13.8x 10.0x 37.5x 21.8x 14.1% Vertical marketplaces - Employment services LinkedIn Corp USD 106.27 10,978 10,357 11.5x 7.8x 56.8x 33.6x NM 77.5x 902 1,334 59.8% 182 309 20.2% 51Job Sponsored USD 45.55 2,660 2,310 9.9x 8.4x 28.6x 23.5x 36.8x 30.6x 233 276 15.6% 81 98 34.8% Seek AUD 6.34 2,191 2,520 5.2x 4.5x 11.9x 10.3x 15.4x 12.9x 486 564 19.6% 213 244 43.7% Monster Worldwide USD 8.31 1,008 969 1.0x 0.9x 6.4x 5.6x 27.6x 19.7x 988 1,025 (0.9%) 152 174 15.4% Dice USD 9.39 647 592 3.0x 2.7x 7.5x 6.7x 16.3x 13.8x 197 219 10.5% 79 88 40.2% Xing EUR 46.00 323 254 2.6x 2.3x 8.1x 6.8x 21.8x 17.1x 96 108 14.6% 31 37 32.5% Mean 5.5x 4.4x 19.9x 14.4x 23.6x 28.6x 484 588 20.5% 123 159 31.1% Median 4.1x 3.6x 10.0x 8.6x 21.8x 18.4x 33.6% Vertical marketplaces - Real Estate Rightmove GBP 15.92 2,732 2,698 15.4x 13.7x 21.3x 18.7x 29.3x 25.7x 175 197 13.7% 126 144 72.1% Rea Group AUD 13.71 1,848 1,692 5.6x 5.0x 12.2x 10.5x 19.8x 17.0x 303 339 13.3% 139 161 45.9% Move USD 9.09 369 278 1.4x 1.3x 10.2x 8.5x 30.1x 21.5x 197 209 4.5% 27 33 13.8% Mean 7.5x 6.7x 14.6x 12.6x 26.4x 21.4x 225 249 10.7% 98 112 43.9% Median 5.6x 5.0x 12.2x 10.5x 29.3x 21.5x 45.9% Other vertical marketplaces Moneysupermarket Com GBP 1.25 1,036 981 3.1x 2.8x 10.6x 8.9x 16.2x 13.6x 315 345 10.9% 93 110 29.4% Webmd Health 'A' USD 20.51 1,032 690 1.4x 1.3x 6.6x 6.0x NM NM 502 526 (3.0%) 105 115 20.8% Ehealth USD 16.11 341 225 1.5x 1.3x 13.3x 10.8x 53.4x 40.1x 155 169 5.6% 17 21 10.9% Meetic EUR 10.33 302 260 1.2x 1.1x 5.4x 5.0x 9.7x 8.8x 224 231 1.2% 49 52 21.7% Mutuionline EUR 2.86 143 124 2.2x 1.6x 9.5x 4.9x 17.1x 8.6x 57 75 (7.2%) 13 25 22.8% Mean 1.9x 1.7x 9.1x 7.1x 24.1x 17.8x 251 269 1.6% 55 65 21.1% Median 1.5x 1.3x 9.5x 6.0x 16.7x 11.2x 21.7% Online Travel Priceline.com USD 664.52 34,307 30,871 5.6x 4.6x 15.4x 12.2x 21.2x 16.8x 5,470 6,701 24.0% 2,010 2,537 36.7% Amadeus IT Holding EUR 16.70 9,461 11,695 3.3x 3.1x 8.5x 7.9x 13.7x 12.7x 3,588 3,784 5.1% 1,376 1,474 38.3% TripAdvisor USD 44.69 6,634 6,840 8.9x 7.4x 20.5x 16.9x 32.8x 26.6x 770 921 20.2% 334 404 43.3% Expedia USD 48.07 6,555 5,913 1.6x 1.4x 7.8x 7.0x 16.9x 14.8x 3,814 4,200 10.3% 754 844 19.8% Ctrip.com USD 16.76 2,487 1,719 2.6x 2.2x 9.8x 7.2x 19.0x 14.6x 666 792 19.4% 176 240 26.4% HomeAway USD 21.74 1,894 1,672 5.9x 4.9x 20.6x 16.2x 44.4x 31.4x 282 343 22.1% 81 103 28.7% Wotif Com AUD 4.21 915 757 5.0x 4.6x 8.6x 7.8x 14.9x 13.6x 152 165 7.9% 88 97 58.0% Orbitz USD 3.65 380 632 0.8x 0.7x 4.7x 4.2x 14.0x 9.4x 811 868 6.4% 134 149 16.5% Travelzoo USD 22.72 365 316 2.0x 1.8x 8.0x 7.3x 14.9x 13.5x 157 175 8.6% 39 44 25.0% Hotel De EUR 26.50 126 114 1.9x 1.7x 42.9x 31.0x 78.2x 52.6x 60 69 15.0% 3 4 4.5% Mean 3.8x 3.2x 14.7x 11.8x 27.0x 20.6x 1,577 1,802 14.4% 499 589 29.7% Median 2.9x 2.6x 9.2x 7.9x 17.9x 14.7x 27.6% Online Marketing / Advertising Valueclick USD 16.39 1,342 1,340 1.9x 1.7x 6.1x 5.4x 14.4x 12.3x 696 778 17.9% 218 247 31.3% Velti USD 6.28 667 686 2.4x 1.8x 8.2x 6.0x 13.7x 9.3x 292 391 43.8% 83 115 28.6% Marchex 'B' USD 3.61 134 93 0.6x 0.6x 4.8x 4.0x 14.0x 10.1x 144 160 4.4% 19 24 13.3% Hi Media EUR 2.00 116 155 0.5x 0.5x 5.9x 4.9x 9.4x 7.6x 291 323 5.4% 26 31 9.0% Tradedoubler SEK 16.90 105 66 0.2x 0.2x 4.0x 3.4x 10.0x 8.1x 384 405 (2.7%) 16 20 4.3% Sedo Holding AG EUR 1.83 71 43 0.2x 0.2x 4.8x 4.2x 22.7x 10.0x 174 177 6.1% 9 10 5.1% AD Pepper Media EUR 0.90 26 19 0.3x 0.2x NM 19.7x NM NM 76 82 7.3% (1) 1 (1.7%) Mean 0.9x 0.7x 5.7x 6.8x 14.0x 9.5x 294 331 12.1% 53 64 12.8% Median 0.5x 0.5x 5.4x 4.9x 13.8x 9.6x 9.0%

(1) All figures in USD millions

Source: Thomson Reuters, company filings, updated as of 30 June 2012 14 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

D - Public Market Trading Multiples (cont’d)

(1) All figures in USD millions

Source: Thomson Reuters, company filings, updated as of 30 June 2012 15 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

A - Trading Update Sub-sector performance – Last Three Months: Sub-sector performance – Last 12 Months:

Sector 3M Sector LTM Fintech 2.3% SAAS 9.3% SAAS (2.2)% Fintech 3.2% ERP (5.7)% ERP (9.6)% Infrastructure (15.6)% Infrastructrue (24.4)% DJIA (2.5)% DJIA 3.8% NASDAQ Comp (3.3)% NASDAQ Comp 5.8% S&P 500 (5.1)% S&P 500 3.1%

Note: For composition of indices, see Public Market Trading Multiples section Top 5 Price Performers – Last Three Months: Top 5 Price Performers – Last 12 Months:

Company % change Company % change Kewill PLC 42.7% Ultimate Software Group 63.4% Ultimate Software Group 21.3% Micro Focus International 55.9% Concur Technologies 18.2% NetSuite 39.7% Micro Focus International 17.6% Concur Technologies 36.0% Cornerstone OnDemand 10.0% Cornerstone OnDemand 34.9%

Top 5 Price Underperformers – Last Three Months: Top 5 Price Underperformers – Last 12 Months:

Company % change Company % change

Symantec Corp (20.6)% Software AG (41.4)% Software AG (12.3)% Temenos Group (39.6)% Progress Software Corp (12.1)% Symantec Corp (25.9)% Salesforce.com (11.6)% Fidessa Group (20.0)% Sap AG (10.4)% Unit4 NV (19.4)%

Source: Thomson Reuters 16 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

B - Transaction Update Selected European ECM Transactions – Q2 2012

Offering Target Amount Offering Date Target Location ($MM) Deal Type Description Target Description 28-May-2012 ATM Systemy Poland 231 IPO Common Stock Offers end-to-end ICT services, including building Informatyczne SA and maintenance of ICT infrastructure and IT security systems Number of Deals 1 Average Value ($MM) 231 Total Value ($MM) 231

Note: Offerings over $10 million where the issuer is headquartered in Europe

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 17 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

B - Transaction Update Selected European M&A Transactions – Q2 2012

Deal Trans. Multiples Target Acquirer Value EV / EV / Date Target Location Acquirer Location ($MM) Sales EBITDA Target Description 20-Jun-2012 Folhamatic Tecnologia Brazil Sage Group plc UK 197 3.0x 13.4x Develops accounting and business em Sistemas Ltda management software solutions (75% stake) 19-Jun-2012 Kewill plc UK Francisco Partners US 136 1.5x 10.5x Provides computer software and services for managing supply chain 11-Jun-2012 Paradigm BV Netherlands Apax Partners US 1,000 N/A N/A Provides exploration and production JMI Equity Partners enterprise software solutions 01-Jun-2012 Gyron Internet Ltd UK NTT Communications Japan 63 N/A N/A Provides datacentre services, including Corp collocation and connectivity services 30-May-2012 Logica plc UK CGI Group Inc Canada 2,459 0.4x 6.0x Offers system integration and consulting services 29-May-2012 Esterel Technologies SA France Ansys Inc US 53 2.8x N/A Offers critical systems and software development solutions 22-May-2012 Ariba Inc US SAP AG Germany 4,310 8.6x N/M Provides collaborative business commerce solutions 21-May-2012 BigHand Ltd UK Bridgepoint Development UK 77 3.7x 13.2x Develops digital dictation software Capital & LDC Ltd 16-May-2012 Certiport Inc US Pearson plc UK 140 2.9x N/A Offers foundation-level certification programmes 07-May-2012 TRAEN A/S Denmark Formpipe Software AB Sweden 44 1.4x 6.5x Develops IT solutions that support and streamline business processes 26-Apr-2012 Torex Retail Holdings Ltd UK Micros Systems Inc US 263 0.8x N/A Provides IT systems for retail, fuel and convenience stores 26-Apr-2012 Gemcom Software US Dassault Systemes SA France 360 N/A N/A Offers software solutions for International Inc exploration, planning and scheduling 20-Apr-2012 MU Dynamics Inc US Spirent Communications UK 40 4.0x N/A Offers solutions that enable faster plc deployments of cloud applications Median 2.9x 10.5x Mean 2.9x 9.9x

Number of Deals 13 Average Value ($MM) 703 Total Value ($MM) 9,143

Note: M&A transactions over $40 million where either party is headquartered in Europe

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 18 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

B - Transaction Update Selected European Private Equity and Venture Capital Activity – Q2 2012

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 21-Jun-2012 NaturalMotion Ltd UK 11 Benchmark Capital Develops animation technologies for games, film, post production and broadcast markets 15-Jun-2012 doo.net Germany 10 Target Partners Offers a cloud-based service that automatically DuMont Venture collects and organises documents from multiple e42 Ventures sources 24-May-2012 Huddle UK 24 Jafco Ventures Provides cloud-based project and document DAG Ventures management solutions Eden Ventures Matrix Partners 10-Apr-2012 Sefaira Ltd UK 11 Braemar Energy Ventures Develops cloud-based technologies for the building Hermes GPE and building materials sectors SET Venture Partners Number of Deals 4 Average Value ($MM) 14 Total Value ($MM) 56

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 19 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 2 - Software and IT Services

C - Industry News

Cloud services and telecoms to boost global IT spend to USD3.6 trillion 9 July 2012, written by StrategyEye Investment in cloud services and telecoms will push global IT spending to USD3.6 trillion this year, up 3% from 2011, according to the latest report from Gartner. While IT services continues to be the largest sector, interest in cloud computing is growing as companies look to reduce their costs and shift services online. Gartner forecasts that spend on cloud tools will grow from a USD91 billion market last year to USD109 billion in 2012, with that figure expected to hit USD207 billion by 2016.

A recent survey by Cisco finds that a fifth of organisations are talking this year about moving 50% of their applications in the cloud, a major shift from a year ago when companies were more cautious about the sector. And the huge number of acquisitions in the space would suggest it is shaping up to be a big growth area, with Microsoft just the latest to make a move by buying business social network Yammer. But, speaking to StrategyEye, Cisco’s U.K. and Ireland CTO, Ian Foddering, suggests that there are still barriers to companies moving service over to the cloud, including security and cultural issues, with these limiting IT spend in the short term.

‚Business process as a service still accounts for the vast majority of cloud spending by enterprises, but other areas such as platform as a service, software as a service and infrastructure as a service are growing faster," says Gartner research vice president, Richard Gordon.

EU court upholds Microsoft’s $1 billion fine 28 June 2012, written by Piper Jaffray Emerging markets such as Latin America and Africa will spend USD1.22 trillion on IT this year, accounting for just less than a third of the global market, according to new figures from Gartner. Growth in IT spend is forecast despite economic turbulence and financial uncertainty in many of these regions, with Brazil, Russia, Mexico and China expected to perform particularly well. Gartner research vice president Luis Anavitarte forecasts that these regions will contribute as much as 17%, or USD658 billion, of the global total, adding that the markets are "far from saturated".

"While professional and consumer market opportunities can be found in many emerging markets, Brazil, Russia, Mexico and China continue to perform particularly strongly," says Anavitarte. "This is where over half of emerging markets' IT spending will be concentrated in 2012."

Internet users to access more than a third of their content via the cloud by 2016 25 June 2012, written by StrategyEye Internet users will access more than a third of their digital content from cloud services by 2016, according to a new study from Gartner, as users continue to shift away from physical storage on a single device. The research firm suggests that the vast majority of consumer content is stored on hard drives and other physical devices, with just 7% hosted on cloud services such as Dropbox or Google Drive. However, this is set to shift as the popularity of smart phones and tablets continues to rise and there is greater demand for the ability to access owned content such as music or photos on-the-go.

"Historically, consumers have generally stored content on their PCs, but as we enter the post-PC era, consumers are using multiple connected devices, the majority of which are equipped with cameras. This is leading to a massive increase in new user-generated content that requires storage," says Gartner analyst Shalini Verma.

Microsoft acquires Yammer 15 June 2012, written by Piper Jaffray Microsoft has agreed to acquire enterprise social networking company, Yammer for $1.2 billion. The purchase of the company will add more social features to Microsoft Office, which for years has been the core business for Microsoft. Yammer’s software has the ability to integrate with Microsoft’s SharePoint collaboration software, and the company recently bought OneDrum, a file sharing service enabling users to work on Microsoft Office applications in real-time.

Despite Yammer’s modest revenues, Steve Ballmer defended the acquisition price by citing Yammer’s technology, its revenue generating potential and specifically, its ‚viral adoption‛ model.

20 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 2 - Software and IT Services

C - Industry News

European cloud adoption to trail U.S. by two years 31 May 2012, written by StrategyEye Adoption of cloud services by businesses in Europe will trail the U.S. by at least two years, according to new research from Gartner, as a number of elements, including privacy and the economy, delay penetration. The research firm asserts that, while interest in the cloud in Europe is comparable to the U.S., four key factors will inhibit its transition to the mainstream. Primarily, Gartner cites the euro crisis and a lingering recession that will impact investment, the complexity of privacy regulations across the continent, the diversity of the countries across the region and the slow spread of E.U. regulations as barriers to adoption.

‚The opportunities for cloud computing value are valid all over the world, and the same is true for some of the risks and costs‛, says Gartner vice president Paolo Malinverno. ‚However, some of cloud computing’s potential risks and costs—namely security, transparency and integration—which are generally applicable worldwide, take on a different meaning in Europe‛.

As cloud services continue to gain in popularity, a number of firms are battling it out for dominance. These include current office stalwart Microsoft, which is attempting to transition to the cloud with its office software, as well as the likes of Google and Amazon, which both offer cloud services such as collaboration software, e-mail and storage. Meanwhile, start-ups such as Yammer are also trying to compete in the space.

Software piracy crackdown 15 May 2012, written by Piper Jaffray Research by the Business Software Alliance (BSA) found the value of software used illegally reached a record high last year of $63.4 billion, attributable to an increasing number of computers sold in emerging markets where piracy rates are highest. BSA said about 68% of software was illegally obtained in emerging markets, compared with an average of 24% in mature markets. China is believed to be the largest culprit with an estimated $9 billion of software obtained illegally.

Jury split, but Google infringes Oracle’s Java 7 May 2012, written by Piper Jaffray A federal jury found that Google infringed on Oracle’s copyrights, but its decision appeared improbable that Google would be required to pay a substantial amount for damages. Although the jury concluded that Google developed its Android mobile software using Oracle’s Java interfaces, they were unable to determine whether its use was protected by a fair-use doctrine that permits some limited use of copyrighted materials.

As a result, Oracle will seek to have Google obtain a license to use Java, something Google does not want to do because it could make Oracle influential in future versions of Android.

Citrix delivers Windows desktops from the cloud 6 March 2012, written by StrategyEye 10 May 2012, written by Piper Jaffray Citrix has disclosed Project Avalon to the market amid a slew of announcements in recent days. The initiative will use XenDesktp and CloudStack technologies to give companies the ability to shift apps and desktops into public clouds to deliver capacity on-demand. In addition, the company plugged ShareFile into its Receiver software client, which allows users to open, edit and share documents on mobile devices.

U.K. businesses cannot handle European Commission’s rules 18 April 2012, written by Piper Jaffray A OnePoll survey conducted by LogRhythm found that the majority of British businesses are unable to meet the European Commission’s (EC) rule on data breaches, which states that they must inform individuals when their data has been leaked within 24 hours. Its research suggests only 13% would be able to identify individuals affected within the proposed 24-hour timeframe and 13% believed it would take them between a week and a month. The survey also showed that 47% of businesses only analysed data after a security event, rather than on a continuous basis.

Executives plan to increase IT investment 16 April 2012, written by Piper Jaffray Gartner found that more than two-thirds of chief executives of companies with over $500 million in annual revenues plan to increase IT investments to drive growth, despite concerns about the economy. To help achieve their aims, chief executive officers have turned to new technologies while continuing their investments in older technologies such as customer relationship management. Mark Raskino, vice president at Gartner, stated ‚the newer trends, such as mobile and cloud, are rising to the foreground of CEOS’ attention... however CRM remains CEOs’ favourite IT capability‛.

In addition, Gartner’s research showed that Apple was the most admired company for its use of IT with 39% of votes, followed by Google with 11% share.

21 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 2 - Software and IT Services

D - Public Market Trading Multiples

Overall Mean 4.0x 3.4x 13.0x 14.6x 25.6x 20.6x 26.1% Overall Median 2.9x 2.8x 8.7x 8.3x 16.2x 14.3x 26.2%

(1) All Figures in USD millions

Source: Thomson Reuters, company filings, updated as of 30 March 2012 22 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 3 - Communications Technology & Hardware

A - Trading Update

Sub-sector performance – Last Three Months: Sub-sector performance – Last 12 Months: Sector LTM Sector LTM Internet Infrastructure 35.5% Internet Infrastructure 49.3% European Electronic Components and Wireless 46.9% Supply Chain 3.7% European Semiconductor Capital European Semiconductor Capital Equipment (1.0)% Equipment 11.3% European Computing, Storage, Imaging Home Terminals and Peripherals 3.2% and Payment Hardware (3.1)% European Electronic Components and Communication Software (5.3)% Supply Chain 2.1% Wireline / Optical / Cable (5.7)% Communication Software (0.8)% Wireless (7.0)% Wireline / Optical / Cable (13.1)% Home Terminals and Peripherals (8.4)% Diversified Systems (14.7)% European Computing, Storage, Imaging European Semiconductor Device and IP (13.6)% and Payment Hardware (19.7)% Diversified Systems (16.6)% European Semiconductor Device and IP (24.8)% Enterprise / Data Networking (31.3)% Enterprise / Data Networking (44.0)% DJIA (2.5)% DJIA 3.8% NASDAQ Comp (3.3)% NASDAQ Comp 5.8% S&P 500 (5.1)% S&P 500 3.1%

Note: For composition of indices, see Public Market Trading Multiples section

Top 5 Price Performers – Last Three Months: Top 5 Price Performers – Last 12 Months: Company % change Company % change

Access 77.9% Apple 74.0% Logitech 45.2% Equinix 73.9% Pace 39.1% Gemalto 71.6% Arris Group 23.1% Asml 57.7% GN Store Nord 19.0% Austriamicrosystems 52.6%

Top 5 Price Underperformers – Last Three Months: Top 5 Price Underperformers – Last 12 Months:

Company % change Company % change Nokia (60.3)% RIM (73.0)% RIM (48.5)% Alcatel-Lucent (67.4)% Polycom (44.8)% Polycom (67.3)% Riverbed (42.5)% Nokia (63.8)% Soitec (33.4)% Riverbed (59.2)%

Source: Thomson Reuters 23 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 3 - Communications Technology & Hardware

B - Transaction Update

Selected European ECM Transactions – Q2 2012

Offering Target Amount Offering Date Target Location ($MM) Deal Type Description Target Description 03-Jul-2012 Toumaz Ltd UK 47 Follow-On Common Stock Engages in the commercial exploitation of ultra-low power wireless infrastructure technologies 03-May-2012 Technicolor SA France 208 Follow-On Common Stock Cinema production services provider and manufacturer of television set-top boxes 02-May-2012 Ericsson Sweden 996 Bond 4.125% Senior Provides communications equipment and Note multimedia solutions to mobile networks operators 24-Apr-2012 Globo plc UK 16 Follow-On Common Stock Provides e-business, mobile, and telecom software products Number of Deals 4 Average Value ($MM) 317 Total Value ($MM) 1,266

Note: Offerings over $10 million where the issuer is headquartered in Europe

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 24 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 3 - Communications Technology & Hardware

B - Transaction Update

Selected European M&A Transactions – Q2 2012

Deal Trans. Multiples Target Acquirer Value EV / EV / Date Target Location Acquirer Location ($MM) Sales EBITDA Target Description 03-Jul-2012 MACH sarl Luxembourg Syniverse Technologies US 694 N/A N/A Provides hub-based communications Inc exchange solutions 03-Jul-2012 Frontier Silicon Ltd UK Toumaz Ltd UK 51 1.5x N/A Manufactures semiconductors for digital radios 29-Jun-2012 NTO IRE Polyus Russia IPG Photonics Corp US 55 N/A N/A Manufactures finished fiber devices including fiber optic lasers 29-Jun-2012 Elster Group SE Germany Melrose plc UK 2,785 1.5x 10.1x Provides gas, electricity, and water meters and software solutions 18-Jun-2012 Sagemcom, M2M France Sierra Wireless Inc Canada 57 1.1x N/A Offers 3G wireless modules and Business rugged terminals 15-Jun-2012 Psion plc UK Motorola Solutions Inc US 159 0.6x 14.3x Provides enterprise mobile computing solutions 28-May-2012 FCI SA, Motorised France Delphi Automotive plc US 960 1.1x N/A Provides interconnection systems for Vehicles Division the motorised vehicles market 23-May-2012 LaCie SA France Seagate Technology plc Ireland 185 0.6x 7.4x Manufactures storage devices, displays (64.5% stake) and peripherals 14-May-2012 Buongiorno SpA Italy NTT DOCOMO Inc Japan 350 1.2x 12.7x Develops and manages paid apps and services for mobile devices 10-May-2012 XtremIO Ltd Israel EMC Corp US 430 N/A N/A Develops flash memory technology for storage infrastructure 23-Apr-2012 Transics International NV Belgium Tavares NV Belgium 53 0.8x 3.9x Offers on-board computers for fleet management and vehicle tracking 16-Apr-2012 Objet Ltd Israel Stratasys Inc US 1,400 5.0x 30.2x Provides three-dimensional printing systems 10-Apr-2012 Thrane & Thrane A/S Denmark Cobham plc UK 381 2.0x 11.0x Manufactures equipment and systems for mobile communication 03-Apr-2012 Augusta Technologie AG Germany TKH Group NV Netherlands 128 0.9x 5.4x Manufactures digital cameras, optical sensor systems 02-Apr-2012 CT-Concept Technologie Switzerland Power Integrations Inc US 116 N/A N/A Develops drivers for high-voltage IGBT AG modules Median 1.1x 10.6x Mean 1.5x 11.9x

Note: M&A transactions over $40 million where either party is headquartered in Europe

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 25 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 3 - Communications Technology & Hardware

B - Transaction Update

Selected European Private Equity and Venture Capital Activity – Q2 2012

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 26-Jun-2012 Taboola.com Ltd Israel 10 Marker LLC Video discovery and distribution platform Evergreen Venture Partners WGI Group 20-Jun-2012 Power Plus Communications AG Germany 15 Climate Change Capital Provides broadband powerline communication GB Gas Holdings Ltd systems for the transformation of electricity into Siemens Corporate Finance smart grids

01-Jun-2012 Flatfrog Laboratories AB Sweden 25 Intel Capital Manufactures optics-based multi-touch kits and Sunstone Capital subsystems for use in digital signage, gaming and The Invus Group points of sale 14-Jun-2012 iZettle AB Sweden 31 Greylock Partners Processes payments using a free iPhone plug-in Northzone Ventures device to read credit cards Creandum Index Ventures MasterCard Inc SEB Private Equity 13-Jun-2012 Openet Telecom Ltd Ireland 21 NS Solutions Develops transaction management software Balderton Capital Cross Atlantic Kreos Capital 25-Apr-2012 P2i Ltd UK 19 Ombu Ltd Provides nano-coating technology that protects smartphones from liquids Number of Deals 6 Average Value ($MM) 20 Total Value ($MM) 122

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: CapitalIQ, Strategy Eye, company information, Thomson, company press releases 26 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

Weak chip market in May 3 July 2012, written by Piper Jaffray The Semiconductor Industry Association disclosed that May’s global market for chips (excluding memory) was worth approximately $18 billion, down 2% year- on-year. The decline was attributable to a retreat in the analog and microprocessor chip markets, which experienced declines of 10% and 9% year-on-year respectively.

MasterCard partners with Deutsche Telekom for European mobile payment service 2 July 2012, written by StrategyEye MasterCard is teaming up with Deutsche Telekom to bring NFC mobile payments to Europe. This service will first be available to customers in Poland in Q3 and will launch in Germany soon after, initially with a trial of phone tags and cards before the introduction of a mobile wallet next year. The SIM-based service will utilise MasterCard’s subsidiary ClickandBuy, which has an e-money licence allowing people to pay for products and services using their phones.

‚This is a huge step on our way to increase mobile payments. With MasterCard, we have a well-known and experienced partner generating growth in this important market segment. We want to build a comprehensive ecosystem around mobile payment, helping Deutsche Telekom to realise its strategy of being the first choice for customers regarding connected life and work," says chief product and innovation officer for Deutsche Telekom, Thomas Kiessling.

Goldman trims global mobile phone sales forecast as demand falls 26 June 2012, written by StrategyEye Falling demand for smart phones in Europe and the U.S. is leading Goldman Sachs to lower its global sales forecast for 2012, predicting 38% growth over the course of the year, compared to 42% forecast previously. Goldman analyst Simona Jankowski forecasts that smart phone shipments will hit 649 million worldwide this year, down from 668 million predicted previously, hampered by poor sales forecasts from Research In Motion, HTC and Nokia. Yet despite rising competition negatively affecting a number of manufacturers, Samsung’s forecast to sell 10 million of its new flagship Galaxy smart phones indicates that carriers are selling them to consumers on longer contracts, reducing demand for new handsets.

‚In addition to a challenging macro-economic environment, both North America and Western Europe are facing the initial pressures of reduced carrier subsidies and higher upgrade fees, which could elongate the replacement cycle and slow smart phone sales‛, says Jankowski.

Android and Apple account for 80% of global smart phone sales, Apple and Samsung alone account for 50% 18 June 2012, written by Piper Jaffray ABI Research suggests that many smart phone OEMs are not enjoying the benefits of a rapidly expanding market, even though shipments grew 41% year-on-year to 144.6 million as of quarter-end March 2012. In first quarter 2012, Apple and Samsung captured 55% of global smart phone shipments and over 90% of the market’s profits. Of the top ten smart phone OEMs, only Samsung and Sony experienced sequential growth in shipments over the fourth quarter of 2011. Nokia experienced a 40% sequential decline in shipments and is likely to be passed by RIM, despite the Blackberry manufacturer’s continual decline in shipments.

When factoring in the entire Google Android market, Android and Apple’s iOS accounted for more than 80% of global sales in Q1—indicating that the market has increasingly become a two-horse race, according to new figures from IDC. The research firm estimates that Android led the market with 59% of shipments, ahead of iOS with 23%, boosting the pair’s share from 54.4% in Q1 2011 to 82% a year later.

Mobile IPO and M&A market already worth USD6.5 billion this year 12 June 2012, written by StrategyEye Investor appetite for mobile tech firms has reportedly generated USD6.5 billion in IPO and M&A activity for the first six months of this year already, according to research by investment bank Rutberg &Co. Led by Facebook's eye-watering USD1 billion Instagram purchase and the USD130 million raised by Millennial Media's stock market debut, this figure is nearly as high as deal activity for all of 2010, illustrating the growing demand for mobile technology as smart phone and tablet ownership continues to climb. Rutberg predicts that the number of mobile exits this year is likely to surpass figures for 2011, when IPO and M&A activity hit a new record with USD15.5 billion.

Rutberg forecasts that M&A activity will dominate mobile exit deals over the coming year, after Facebook's rocky public offering last month cast a "dark cloud" over the IPO market. According to the report, the margin between M&A and IPO values has been gradually widening since 2007 when USD7.1 billion in deals was pitted quite evenly. So far this year, however, M&A has made up USD4.6 billion of the deals, compared to USD1.9 billion from stock market debuts. With fears that a string of high-value IPOs from the likes of Groupon, LinkedIn and Pandora last year pointed towards a growing tech bubble, and concern that Facebook will struggle to live up to its IPO valuation, Rutberg anticipates a more sober IPO market this year.

27 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

3G to cover 85% of the world by 2017 6 June 2012, written by Piper Jaffray Ericsson has predicted that 3G mobile broadband coverage will be available to 85% of the world’s population by 2017, in comparison to the 50% that have coverage today. In the same period, the network equipment company forecasts today’s tally of 6.2 billion mobile subscriptions will reach nine billion. Douglas Gilstrap, Ericsson strategy chief, stated ‚people see access to the Internet as a prerequisite for any device... this mindset results in growing demand for mobile broadband and increased data traffic‛. Much of the growth mobile subscriptions will come from the developing world, in particular the Asia-Pacific region.

Ericsson was less bullish about subscriptions growth in Western Europe, as the market is quite mature. The company added that approximately a quarter of subscribers in the region will be using LTE by 2017.

Mobile payments to reach $617 billion in 2016 29 May 2012, written by Piper Jaffray Gartner has forecast that global mobile payment transactions will experience substantial year-on-year growth of 62% to reach $171.5 billion in 2012. Sandy Shen, research director at Gartner, stated that ‚we expect global mobile transaction volume and value to average 42% annual growth between 2011 and 2016, and we are forecasting a market worth $617 billion with 448 million users by 2016‛. Gartner believes ecommerce and in-store purchases will drive transactions in North America and Western Europe. In developing markets, Gartner suggests that money transfer and airtime top-ups will account for a significant portion of transaction volume due to the demand for secure and efficient ways of transferring and storing money.

Buying Opera would cost Facebook more than $1 billion 28 May 2012, written by Piper Jaffray Facebook is reportedly considering a $1 billion acquisition of Norwegian browser company, Opera Software, as it looks to monetise its growing mobile audience. Analysts suggest that Opera would be a perfect fit for Facebook, but the firm’s business is also vital for some of the industry’s biggest players and any bid is likely to attract others to the table. The company’s software is available on most phones and works on various operating systems, including Android, giving Opera the reach that Facebook requires.

Facebook mobile weakness 9 May 2012, written by Piper Jaffray According to Facebook’s IPO regulatory filings, the company suggested the migration of its users to mobile platforms is compromising its ability to make money from them. Facebook stated that the number of daily users is increasing faster than the number of ads it delivers to them, due to the substantial increase of people accessing Facebook through mobile devices, where the company currently displays an ‘immaterial number’ of ads in user’s newsfeeds.

$1.5 trillion in mobile revenues 30 April 2012, written by Piper Jaffray Research by Chetan Sharma has found that the mobile industry revenues will exceed $1.5 trillion in 2012, with 28% of that ($400 billion) attributable to mobile data. He notes that within the revenues expected for mobile data, non-messaging revenues led by apps, music and video streaming, and mobile Web browsing have overtaken SMS as smart phone usage continues to grow.

The total worldwide base of mobile subscribers has reached six billion and has only taken 15 months to grow from five billion. This substantial rise is attributable to China and India adding 75 million new subscribers each quarter.

Nokia loses mobile phone top slot to Samsung 26 April 2012, written by StrategyEye Nokia has lost its position as the number one mobile phone maker globally after 14 years at the top, as the firm continues to struggle to turn around its fortunes, despite the rollout of its first devices running on Microsoft’s Windows Phone OS. Research by Strategy Analytics claims that Samsung overtook Nokia for the first time in Q1 as sales of its Galaxy range of devices helped boost its position, while Nokia saw its sales drop. Samsung is the only major manufacturer not to reveal shipment figures, but the research firm estimates that Samsung shifted 93.5 million mobile phones in the quarter, up 36.7% and giving it 25.4% of the market. This compares to the 82.7 million units Nokia shipped during the quarter, which gave it 22.5% of the market.

‚Nokia’s global handset shipments declined a huge 24% annually in Q1 2012,‛ says Neil Mawston, executive director at Strategy Analytics. ‚Nokia was the world’s largest handset vendor between 1998 and 2011, for 14 years, before finally yielding top position to rival Samsung this quarter.‛

28 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

Smart phone sales to surpass one billion in 2014 16 April 2012, written by StrategyEye Global smart phone sales will surpass the one billion milestone in 2014, boosted by demand in Asia and the proliferation of lower-end devices, according to stats from Credit Suisse. Analyst Kulbinder Garcha predicts in a research note that sales of smart phones around the world will grow almost 50% to 687.9 million units this year alone, before hitting 1.2 billion in 2014 in what he describes as "robust growth" for the market. He believes that the market is set to experience a lift as devices become more affordable and essential from the consumer point of view.

Garcha forecasts a compound annual growth rate in shipments of 26% between now and 2015, creating a market worth USD272.28 billion, up from USD156 billion in 2011. In the same year, Garcha says that China will account for 22% of smart phone unit sales, with a greater number of wealthier consumers beginning to demand higher-end smart phones such as Apple’s iPhone.

PC market returns to growth 13 April 2012, written by Piper Jaffray Gartner and IDC reported an increase in worldwide PC shipments in the first quarter of 2012 with Lenovo (up 28.1%) and Asus (23.1%) showing significant growth. HP remained the leader with a 17.2% market share and shipments growing by 3.5% to 15.3 million.

Although results were stronger than expected, Gartner suggested that the consumer market was weak and the U.S. market saw another decline of 3.5%. The European market fared much stronger with shipments increasing by 6.7% to 28.2 million.

29 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

D - Public Market Trading Multiples

Stock Fully Diluted Fully Diluted Fully Diluted Revenues EBITDA Price Market Enterprise EV / Revenue EV / EBITDA P/E Revenues CAGR EBITDA Margin Company Local 29-Jun-12 Cap Value Dec-12 Dec-13 Dec-12 Dec-13 Dec-12 Dec-13 Dec-12 Dec-13 11-13 Dec-12 Dec-12 Currency (Local Ccy) (USD m) (USD m) (USD m) (USD m) (USD m) Diversified Systems Cisco Systems USD 17.17 92,159 60,137 1.3x 1.2x 4.1x 3.8x 9.1x 8.6x 46,959 49,480 5.6% 14,637.8 31.2% Ericsson SEK 63.05 31,570 24,833 0.7x 0.7x 5.4x 4.9x 15.6x 11.7x 35,219 36,768 3.4% 4,569.3 13.0% Motorola Solutions USD 48.11 14,215 12,066 1.4x 1.3x 7.2x 6.7x 15.1x 13.9x 8,687 9,163 5.7% 1,681.5 19.4% ZTE CNY 13.96 7,626 12,015 0.7x 0.6x 13.3x 10.7x 13.5x 10.4x 16,725 20,729 23.0% 905.8 5.4% Alcatel-Lucent EUR 1.30 4,044 4,047 0.2x 0.2x 2.5x 2.3x 7.7x 7.0x 20,080 20,654 (0.7%) 1,602.9 8.0% Mean 0.9x 0.8x 6.5x 5.7x 12.2x 10.3x 25,534 27,359 6.1% 4,679.5 15.4% Median 0.7x 0.7x 5.4x 4.9x 13.5x 10.4x 13.0% Wireline/Optical/Cable Ciena USD 16.37 1,626 2,433 1.3x 1.1x 17.6x 11.1x NM 15.8x 1,901 2,125 9.8% 137.9 7.3% Arris Group USD 13.91 1,588 1,287 1.0x 0.9x 7.0x 6.0x 14.6x 12.2x 1,333 1,424 14.4% 184.5 13.8% Tellabs USD 3.33 1,219 285 0.2x 0.2x 5.7x 3.5x NM 43.2x 1,150 1,178 (4.3%) 50.0 4.4% Infinera USD 6.84 760 556 1.3x 1.0x NM 29.2x NM NM 440 552 16.8% (27.0) (6.1%) Harmonic USD 4.26 501 332 0.6x 0.6x 4.1x 3.2x 13.8x 9.5x 553 594 3.9% 81.0 14.6% Adva Optical Networking EUR 4.07 262 216 0.5x 0.4x 3.9x 3.1x 10.9x 10.3x 461 521 12.1% 55.5 12.0% Net Insight 'B' SEK 1.52 90 61 1.2x 1.1x 8.3x 6.3x 13.7x 11.2x 51 58 13.8% 7.4 14.7% Mean 0.9x 0.8x 7.8x 8.9x 13.2x 17.0x 841 922 7.8% 69.9 8.7% Median 1.0x 0.9x 6.3x 6.0x 13.8x 11.7x 12.0% Wireless Apple USD 584.00 550,993 522,455 3.1x 2.6x 8.2x 7.1x 12.0x 10.3x 170,328 203,260 29.3% 64,039.2 37.6% Qualcomm USD 55.68 97,925 83,885 4.2x 3.8x 10.3x 9.3x 14.7x 13.6x 19,845 21,809 16.7% 8,163.8 41.1% Nokia EUR 1.64 8,389 3,823 0.1x 0.1x 14.1x 2.4x NM 78.5x 40,842 40,911 (10.9%) 271.2 0.7% Research In Motion USD 7.56 3,961 2,023 0.2x 0.2x 1.7x 2.6x NM NM 11,712 10,035 (26.8%) 1,224.6 10.5% Mean 1.9x 1.7x 8.5x 5.4x 13.4x 34.1x 60,682 69,004 15.2% 18,424.7 22.5% Median 1.6x 1.4x 9.2x 4.9x 13.4x 13.6x 24.0% Home Terminals and Peripherals Garmin USD 38.29 8,019 6,644 2.4x 2.3x 10.1x 9.4x 15.5x 14.5x 2,794 2,829 1.3% 660.5 23.6% GN Store Nord DKK 70.85 2,464 2,691 2.4x 2.3x 14.8x 11.2x 23.6x 16.8x 1,108 1,184 8.9% 181.5 16.4% Logitech USD 11.33 2,178 1,699 0.7x 0.7x 9.4x 7.5x 23.1x 16.3x 2,328 2,386 1.2% 181.4 7.8% Axis SEK 150.00 1,578 1,533 2.4x 2.0x 15.0x 11.4x 23.2x 17.4x 642 777 19.8% 102.0 15.9% Netgear USD 34.51 1,341 972 0.7x 0.6x 5.1x 4.5x 11.8x 10.4x 1,362 1,557 14.8% 189.3 13.9% Tom Tom EUR 3.19 943 1,198 0.8x 0.8x 5.2x 4.2x 9.1x 8.7x 1,486 1,437 (8.0%) 232.5 15.6% Pace GBP 1.67 824 1,339 0.4x 0.4x 4.5x 4.0x 6.5x 5.5x 3,509 3,701 0.0% 299.8 8.5% D-Link TWD 19.05 418 341 0.3x 0.3x 6.0x 5.1x 10.5x 8.3x 1,159 1,271 7.4% 56.5 4.9% Parrot EUR 23.26 394 278 0.8x 0.7x 5.0x 4.6x 10.8x 10.0x 367 391 8.7% 56.0 15.3% Kudelski CHF 7.20 389 656 0.7x 0.7x 6.4x 5.1x 14.1x 9.4x 933 962 (0.3%) 102.0 10.9% Advanced Digital Broadcast Holding USD 11.75 65 37 0.1x 0.1x 1.1x 0.7x 17.1x 4.7x 437 423 3.0% 34.5 7.9% Mean 1.1x 1.0x 7.5x 6.2x 15.0x 11.1x 1,466 1,538 2.8% 190.5 12.8% Median 0.7x 0.7x 6.0x 5.1x 14.1x 10.0x 13.9% Enterprise / Data Networking Juniper Networks USD 16.31 8,665 6,234 1.4x 1.3x 7.3x 5.7x 19.3x 14.1x 4,414 4,864 4.6% 849.2 19.2% F5 Networks USD 99.56 7,933 7,443 5.1x 4.3x 12.5x 10.4x 21.0x 17.4x 1,458 1,732 19.5% 595.4 40.8% Riverbed Technology USD 16.15 2,612 2,128 2.6x 2.2x 8.6x 7.8x 16.2x 13.2x 825 959 14.8% 248.0 30.1% Polycom USD 10.52 1,877 1,313 0.9x 0.8x 5.4x 4.6x 11.6x 9.6x 1,489 1,602 3.5% 241.8 16.2% BATM Advanced Communications USD 0.23 94 75 0.7x 0.6x 12.7x 7.3x NM 17.3x 114 125 (0.9%) 6.0 5.2% Mean 2.1x 1.8x 9.3x 7.1x 17.0x 14.3x 1,660 1,857 7.6% 388.1 22.3% Median 1.4x 1.3x 8.6x 7.3x 17.8x 14.1x 19.2% Communication Software Nuance Communications USD 23.82 7,843 8,020 4.5x 3.9x 11.1x 9.5x 14.2x 12.4x 1,800 2,059 18.0% 722.5 40.1% Amdocs USD 29.72 5,139 4,243 1.3x 1.2x 6.2x 5.9x 11.0x 10.0x 3,313 3,459 3.9% 688.9 20.8% NeuStar Inc USD 33.40 2,295 2,700 3.3x 3.0x 7.1x 6.4x 12.3x 10.9x 824 898 20.3% 382.4 46.4% Comverse Technology USD 5.82 1,275 1,508 0.9x 0.9x 5.6x 4.9x 11.9x 10.2x 1,642 1,717 3.7% 269.9 16.4% Opera Software ASA NOK 41.90 913 901 4.2x 3.3x 14.3x 10.2x 23.7x 15.9x 212 271 31.2% 63.1 29.7% Synchronoss Technologies USD 18.47 736 615 2.2x 1.8x 7.5x 6.1x 16.7x 14.7x 285 340 21.5% 81.7 28.6% Monitise GBP 0.33 570 504 5.9x 3.6x NM NM NM NM 85 140 91.1% (19.6) (22.9%) Gameloft SA EUR 4.90 527 478 1.9x 1.6x 10.4x 8.3x 19.8x 15.9x 258 293 15.7% 45.8 17.8% Access JPY 57900.00 274 (4) NM NM NM NM 65.2x 36.6x 127 126 (15.8%) 10.3 8.1% Myriad Group USD 3.33 193 173 2.6x 2.3x 89.1x 22.9x NM NM 66 74 9.0% 1.9 2.9% TeleCommunication Systems Inc USD 1.23 71 162 0.4x 0.3x 3.7x 3.5x 5.2x 3.7x 456 476 5.8% 43.7 9.6% OnMobile Global Ltd INR 30.55 69 41 0.3x 0.2x 1.1x 1.0x 3.4x 3.5x 148 167 17.8% 37.8 25.6% Smith Micro Software Inc USD 1.84 67 29 0.6x 0.4x NM 5.4x NM 75.8x 50 73 12.1% (18.9) (38.1%) Motricity Inc USD 0.62 29 39 0.4x 0.4x 4.8x 2.6x NM 22.0x 97 93 (12.5%) 8.1 8.4% Mean 2.2x 1.8x 14.6x 7.2x 18.3x 19.3x 669 728 9.4% 165.5 13.8% Median 1.9x 1.6x 7.1x 6.0x 13.2x 13.5x 17.1%

(1) All Figures in USD millions

Source: Thomson Reuters, company filings, updated as of 30 June 2012 30 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

D - Public Market Trading Multiples (cont’d)

European Computing, Storage, Imaging and Payment Hardware Ingenico EUR 38.32 2,681 2,837 1.9x 1.7x 10.5x 9.5x 20.0x 17.1x 1,487 1,625 10.3% 270.4 18.2% Spirent Communications USD 2.57 1,708 1,471 2.6x 2.3x 9.5x 8.4x 17.3x 15.3x 572 628 9.1% 154.5 27.0% Wincor Nixdorf EUR 27.98 1,235 1,435 0.5x 0.5x 6.2x 5.3x 13.1x 10.1x 3,089 3,160 1.0% 230.2 7.5% Bull SA EUR 2.34 377 97 0.1x 0.1x 1.1x 1.0x 12.0x 8.6x 1,756 1,817 2.3% 88.1 5.0% Xyratex USD 11.31 318 187 0.1x 0.2x 2.4x 2.7x 6.6x 7.3x 1,299 1,245 (6.9%) 79.2 6.1% Lacie EUR 3.98 192 137 0.4x NA 4.4x NA 9.1x NA 369 NA NA 31.2 8.4% Mean 0.9x 0.9x 5.7x 5.4x 13.0x 11.7x 1,429 1,695 9.4% 142.2 12.0% Median 0.4x 0.5x 5.3x 5.3x 12.5x 10.1x 7.9% European Semiconductor Device and IP Arm Holdings GBP 5.06 11,185 10,607 12.0x 10.5x 27.4x 22.2x 36.6x 29.6x 885 1,009 13.2% 386.6 43.7% Infineon Technologies EUR 5.29 7,980 5,269 1.0x 1.0x 4.1x 3.5x 14.1x 12.0x 5,230 5,525 2.2% 1,292.2 24.7% NXP Semiconductors USD 23.25 5,962 9,195 2.2x 2.0x 8.2x 6.6x 13.6x 8.5x 4,250 4,580 4.5% 1,127.0 26.5% Stmicroelectronics USD 5.77 5,253 4,726 0.5x 0.5x 6.3x 3.5x 29.7x 11.6x 9,073 9,875 1.3% 754.3 8.3% Imagination Technologies GBP 4.67 2,005 1,908 8.1x 6.7x 25.4x 19.2x 36.9x 26.7x 237 286 23.1% 75.1 31.7% Dialog Semiconductor USD 19.03 1,368 1,234 1.7x 1.4x 10.5x 7.3x 20.7x 13.8x 730 892 30.1% 117.3 16.1% Austriamicrosystems EUR 52.76 1,034 1,085 2.2x 2.0x 7.6x 6.6x 11.0x 10.0x 494 551 22.4% 143.6 29.0% CSR USD 3.53 707 458 0.5x 0.4x 4.5x 4.0x 14.2x 11.5x 1,001 1,037 10.8% 102.6 10.2% Melexis EUR 12.25 660 672 2.0x 1.9x 7.1x 6.6x 10.1x 9.3x 330 355 7.4% 94.0 28.5% Wolfson Microelectronics USD 3.15 373 320 1.8x 1.5x 30.2x 12.0x NM 31.6x 179 212 16.1% 10.6 5.9% U-Blox Holding CHF 39.00 273 183 1.1x 1.0x 5.7x 5.1x 16.8x 13.8x 172 189 16.9% 32.0 18.6% Micronas Semiconductor Holding CHF 6.96 229 55 0.3x 0.3x 1.3x 1.1x 11.4x 8.8x 188 209 8.8% 42.6 22.6% Nordic Semiconductor NOK 3.16 94 90 3.2x 2.5x 13.1x 9.3x 20.4x 14.6x 28 35 20.5% 6.9 24.6% Mean 2.8x 2.4x 11.6x 8.2x 19.6x 15.5x 1,754 1,904 4.6% 321.9 22.3% Median 1.8x 1.5x 7.6x 6.6x 15.5x 12.0x 24.6% European Semiconductor Capital Equipment Asml Holding EUR 40.07 22,539 19,827 3.0x 2.6x 9.9x 8.6x 14.5x 12.2x 6,607 7,630 0.6% 2,005.3 30.4% ASM International EUR 29.90 2,544 2,456 1.3x 1.1x 6.8x 4.7x 19.0x 11.2x 1,964 2,219 0.9% 361.9 18.4% Aixtron EUR 11.26 1,542 1,157 3.1x 2.0x 63.6x 9.9x NM 24.3x 375 581 (15.6%) 18.2 4.8% Soitec -PAR EUR 2.88 470 329 0.7x 0.5x 10.3x 4.7x NM NM 499 710 30.4% 31.8 6.4% BE Semiconductor EUR 5.77 308 214 0.5x 0.5x 3.4x 2.5x 8.9x 5.9x 416 454 2.1% 62.9 15.1% Muehlbauer Holding EUR 21.88 183 180 0.6x 0.5x 2.9x 2.5x 6.5x 5.4x 304 329 7.6% 62.0 20.4% Mean 1.5x 1.2x 16.2x 5.5x 12.2x 11.8x 1,694 1,988 1.1% 423.7 15.9% Median 1.0x 0.8x 8.3x 4.7x 11.7x 11.2x 16.8% European Electronic Components and Supply Chain Gemalto EUR 56.59 6,824 6,417 2.2x 2.0x 14.5x 12.3x 20.9x 17.4x 2,902 3,180 8.7% 442.8 15.3% Electrocomponents GBP 2.05 1,461 1,721 0.9x 0.8x 7.1x 6.8x 11.2x 10.5x 2,017 2,089 2.3% 241.6 12.0% Huber & Suhner CHF 39.00 873 676 0.9x 0.8x 8.4x 7.0x 25.4x 18.6x 788 820 (1.3%) 80.5 10.2% Laird GBP 1.87 800 988 1.1x 1.0x 6.9x 6.4x 10.3x 9.0x 885 945 0.3% 142.3 16.1% Also Holdings CHF 39.65 565 551 0.1x 0.1x 5.0x 4.0x 13.4x 12.1x 6,878 8,349 7.5% 109.8 1.6% TT Electronics GBP 1.53 385 363 0.4x 0.3x 3.4x 3.0x 9.1x 7.4x 992 1,045 5.0% 106.0 10.7% AT & S Austria Technologie EUR 8.04 278 602 0.8x 0.8x 4.1x 3.7x 7.1x 6.8x 710 768 6.5% 147.2 20.7% Smartrac EUR 10.96 239 294 0.9x 0.8x 7.7x 6.6x 14.3x 11.2x 324 359 26.6% 38.1 11.8% Nolato SEK 66.50 237 223 0.4x 0.4x 3.6x 3.3x 8.8x 7.8x 542 569 12.4% 62.3 11.5% Esprinet EUR 3.20 223 242 0.1x 0.1x 4.1x 4.0x 7.1x 6.8x 2,744 2,778 0.3% 58.7 2.1% Mean 0.8x 0.7x 6.5x 5.7x 12.8x 10.8x 1,878 2,090 5.6% 142.9 11.2% Median 0.9x 0.8x 6.0x 5.2x 10.7x 9.7x 11.6% Internet Infrastructure Equinix USD 175.65 10,234 11,449 6.0x 5.2x 13.1x 11.1x 75.0x 52.1x 1,906 2,209 17.2% 871.8 45.7% Rackspace Hosting USD 43.94 6,309 6,266 4.8x 3.8x 14.7x 11.7x 56.6x 38.8x 1,315 1,642 26.6% 427.7 32.5% Telecity Group GBP 8.03 2,605 2,868 6.3x 5.4x 13.7x 11.3x 26.6x 20.7x 458 535 18.0% 209.7 45.8% Peer 1 Network Enterprises USD 2.25 302 358 2.4x 2.2x 9.1x 8.1x 67.6x 53.4x 146 159 13.6% 39.3 26.9% Iomart Group GBP 1.47 239 243 4.0x 3.5x 11.0x 9.2x 21.1x 18.2x 61 69 16.7% 22.1 36.4% Mean 4.7x 4.0x 12.3x 10.3x 49.4x 36.7x 777 923 20.3% 314.1 37.5% Median 4.8x 3.8x 13.1x 11.1x 56.6x 38.8x 36.4% Overall Mean NA NA NA NA NA NA NA Overall Median NA NA NA NA NA NA NA

(1) All Figures in USD millions

Source: Thomson Reuters, company filings, updated as of 30 June 2012 31 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 4 - Equity Capital Markets and M&A Update

European Equity Offerings YTD

Offer Date Company Type of Issue Exchange Sector Amount ($MM) 03-Jul-2012 Toumaz Ltd Follow-On Alternative Investment Market CommTech 47 20-Jun-2012 Funcom NV Follow-On Oslo Stock Exchange Internet 10 28-May-2012 ATM Systemy Informatyczne SA IPO Warsaw Stock Exchange SW/IT 231 07-May-2012 Eniro AB Follow-On Stockholm Stock Exchange Internet 59 03-May-2012 Technicolor SA Follow-On Euronext Paris CommTech 208 02-May-2012 Ericsson Bond NASDAQ OMX CommTech 996 24-Apr-2012 Globo plc Follow-On Alternative Investment Market CommTech 16 16-Apr-2012 Zattikka plc IPO Alternative Investment Market Internet 21 05-Apr-2012 Progressive Digital Media Group plc Follow-On Alternative Investment Market Internet 32 08-Mar-2012 Wirecard AG Follow-On XETRA CommTech 184 08-Mar-2012 Dialog Semiconductor plc Convertible XETRA CommTech 185 08-Mar-2012 Cupid plc Follow-On Alternative Investment Market Internet 34 20-Feb-2012 INSIDE Secure SA IPO Euronext Paris CommTech 104 16-Feb-2012 Quindell Portfolio plc Follow-On Alternative Investment Market SW/IT 50 07-Feb-2012 Brady plc Follow-On Alternative Investment Market SW/IT 28 02-Feb-2012 AVG Technologies NV IPO New York Stock Exchange SW/IT 128 Number of Deals 16 Average Value ($MM) 146 Total Value ($MM) 2,332

Note: ECM transactions over $10 million where issuer is headquartered in Europe Source: CapitalIQ, company information, Thomson, company press releases 32 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 4 - Equity Capital Markets and M&A Update

European M&A YTD

Date Announced Target Acquirer Sector Amount ($MM) 03-Jul-2012 MACH sarl Syniverse Technologies Inc CommTech 694 03-Jul-2012 Frontier Silicon Ltd Toumaz Ltd CommTech 51 29-Jun-2012 NTO IRE Polyus IPG Photonics Corp CommTech 55 29-Jun-2012 Elster Group SE Melrose plc CommTech 2,785 28-Jun-2012 paysafecard.com Wertkarten AG Skrill Holdings Ltd Internet 175 20-Jun-2012 Folhmatic Tecnologia em Sistemas Ltda Sage Group plc SW/IT 197 19-Jun-2012 Kewill plc Francisco Partners SW/IT 136 18-Jun-2012 Sagemcom, M2M Business Sierra Wireless Inc CommTech 57 15-Jun-2012 Psion plc Motorola Solutions Inc CommTech 159 11-Jun-2012 Paradigm BV Apax Partners SW/IT 1,000 JMI Equity Partners 08-Jun-2012 Allproperty Media Pte Ltd ImmobilienScout GmbH Internet 47 04-Jun-2012 Grupa Onet SA Ringier Axel Springer Media AG Internet 272 02-Jun-2012 Ratioform Holding GmbH Takkt AG Internet 261 01-Jun-2012 Gyron Internet Ltd NTT Communications Corp SW/IT 63 01-Jun-2012 Moneysupermarket.com Group plc MoneySavingExpert.com Ltd Internet 134 30-May-2012 Logica plc CGI Group Inc SW/IT 2,459 29-May-2012 Esterel Technologies SA Ansys Inc SW/IT 53 28-May-2012 FCI SA, Motorised Vehicles Division Delphi Automotive plc CommTech 960 23-May-2012 LaCie SA Seagate Technology plc CommTech 185 21-May-2012 BigHand Ltd Bridgepoint Development Capital SW/IT 77 22-May-2012 Ariba Inc SAPLDC AGLtd SW/IT 4,310 16-May-2012 RunningBall Holding AG Perform Group plc Internet 155 16-May-2012 Certiport Inc Pearson plc SW/IT 140 14-May-2012 Buongiorno SpA NTT DOCOMO Inc CommTech 350 13-May-2012 The Leisure Pass Group Ltd Primary Capital Ltd Internet 56 10-May-2012 XtremIO Ltd EMC Corp CommTech 430 07-May-2012 LeGuide.com SA Lagardere SCA Internet 72 07-May-2012 TRAEN A/S Formpipe Software AB SW/IT 44 26-Apr-2012 Torex Retail Holdings Ltd Micros Systems Inc SW/IT 263 26-Apr-2012 Gemcom Software International Inc Dassault Systemes SA SW/IT 360

Note: M&A transactions over $40 million where either party is headquartered in Europe Source: CapitalIQ, company information, Thomson, company press releases 33 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 4 - Equity Capital Markets and M&A Update

European M&A YTD

Date Announced Target Acquirer Sector Amount ($MM) 23-Apr-2012 Transics International NV Tavares NV CommTech 53 20-Apr-2012 MU Dynamics Inc Spirent Communications plc SW/IT 40 16-Apr-2012 Objet Ltd Stratasys Inc CommTech 1,400 10-Apr-2012 Thrane & Thrane A/S Cobham plc CommTech 381 04-Apr-2012 Totaljobs Group Ltd Axel Springer AG Internet 175 03-Apr-2012 Augusta Technologie AG TKH Group NV CommTech 128 02-Apr-2012 CT-Concept Technologie AG Power Integrations Inc CommTech 116 30-Mar-2012 internetstores AG EQT Partners AB Internet 40 26-Mar-2012 Clairmail Inc Monitise plc CommTech 173 15-Mar-2012 NDS Group Ltd Cisco Systems Inc CommTech 5,000 15-Mar-2012 Radvision Ltd Avaya Inc CommTech 230 12-Mar-2012 Redefine Sp zoo Cyfrowy Polsat SA Internet 48 06-Mar-2012 Axel Springer Digital Classifieds GmbH General Atlantic Internet 314 22-Feb-2012 Roundarch Inc Aegis Group plc SW/IT 360 22-Feb-2012 Sygnity SA Asseco Poland SA SW/IT 74 20-Feb-2012 Misys plc Vista Equity Partners SW/IT 2,141 15-Feb-2012 Kiala SA/ NV United Parcel Delivery Service Inc Internet N/A 13-Feb-2012 AmerCable Inc Nexans SA CommTech 275 08-Feb-2012 Aptara Inc IEnergizer Ltd SW/IT 150 01-Feb-2012 GlobeOp Financial Services SA TPG Capital SW/IT 800 31-Jan-2012 Synchronica plc Myriad Group AG CommTech 39 26-Jan-2012 Pixelpark AG Publicis Groupe SA Internet 63 23-Jan-2012 Autologic Diagnostics Ltd Foresight Group SW/IT 72 ISIS Equity Partners 13-Jan-2012 Buckaroo BV Intrum Justitia AB Internet 51 12-Jan-2012 Aspiro AB Schibsted ASA Internet 40 12-Jan-2012 Anobit Technologies Ltd Apple Inc CommTech 390 09-Jan-2012 CSL DualCom Ltd Bowmark Capital CommTech 49 Octopus Investments 05-Jan-2012 Miyowa SA Synchronoss Technologies Inc CommTech 59 05-Jan-2012 PicoChip Ltd Mindspeed Technologies Inc CommTech 77 Number of Deals 58 Average Value ($MM) 495 Total Value ($MM) 28,736

Note: M&A transactions over $40 million where either party is headquartered in Europe Source: CapitalIQ, company information, Thomson, company press releases 34 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 4 - Equity Capital Markets and M&A Update

European Private Placements YTD

Date Announced Target Investor(s) Sector Amount ($MM) 26-Jun-2012 Taboola.com Ltd Marker LLC CommTech 10 Evergreen Venture Partners WGI Group 21-Jun-2012 NaturalMotion Ltd Benchmark Capital SW/IT 11 21-Jun-2012 KupiVIP Intel Capital Internet 38 Accel Partners Acton Capital Partners Balderton Capital European Bank of Reconstruction 20-Jun-2012 Power Plus Communications AG Climate Change Capital CommTech 15 GB Gas Holdings Ltd Siemens Corporate Finance 19-Jun-2012 Lifealike Ltd Canaan Partners Internet 12 Index Ventures PROFounders Capital 18-Jun-2012 Flatfrog Laboratories AB Intel Capital CommTech 25 Sunstone Capital The Invus Group 15-Jun-2012 doo.net Target Partners SW/IT 10 DuMont Venture e42 Ventures 14-Jun-2012 iZettle AB Greylock Partners CommTech 31 Northzone Ventures Creandum Index Ventures MasterCard Inc SEB Private Equity 13-Jun-2012 Openet Telecom Ltd NS Solutions CommTech 21 Balderton Capital Cross Atlantic Kreos Capital 12-Jun-2012 yd. yourdelivery GmbH Macquarie Capital Group Internet 20 Deutsche Investitions-und Entwicklungsgesellschaft mbH DuMont Venture Holding Moraún Investments SA Mountain Super Angel BCM Bruker Capital Management Rheingau Ventures 08-Jun-2012 Westwing Home & Living GmbH Summit Partners Internet 50 Access Industries Inc Holtzbrinck Ventures Gmbh Investment AB Kinnevik Rocket Internet GmbH 31-May-2012 Iglu.com Ltd Growth Capital Partners Internet 30 24-May-2012 Huddle Jafco Ventures SW/IT 24 DAG Ventures Eden Ventures Matrix Partners

18-May-2012 Notonthehighstreet Enterprises Ltd Fidelity Growth Partners Internet 16 Greylock Partners Index Ventures

Note: Private placement transactions over $10 million where the company is headquartered in Europe Source: CapitalIQ, company information, Thomson, company press releases 35 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 4 - Equity Capital Markets and M&A Update

European Private Placements YTD (CONT’D)

Date Announced Target Investor(s) Sector Amount ($MM) 13-May-2012 Livebookings Ltd Balderton Capital Internet 24 Ekstranda Wellington Partners 10-May-2012 MedicAnimal Ltd Balderton Capital Internet 16 Iris Capital 03-May-2012 Fiverr International Ltd Accel Partners Internet 15 Bessemer Venture Partners 02-May-2012 Avito.ru Accel Partners Internet 75 Baring Vostok Capital Partners Investment AB Kinnevik Northzone Ventures 30-Apr-2012 La Fourchette SA Partech International Internet 11 Serena Capital 29-Apr-2012 Just-Eat Ltd Vitruvian Partners Internet 64 Greylock Partners Index Ventures Redpoint Ventures 25-Apr-2012 P2i Ltd Ombu Ltd CommTech 19 23-Apr-2012 IJM Enterprises Ltd Augmentum Capital Internet 12 Dawn Capital 19-Apr-2012 mySupermarket Ltd WPP plc Internet 10 Greylock Partners Pitango Venture Capital 12-Apr-2012 Viadeo SA Allianz Specialized Investments Internet 32 Fonds Stratégique d'Investissement IDInvest Partners Jefferies Group Ventech 10-Apr-2012 Sefaira Braemar Energy Ventures SW/IT 11 Hermes GPE SET Venture Partners 03-Apr-2012 AppchiMedia Ltd Accel Partners Internet 14 Entrée Capital Founder Collective 02-Apr-2012 Delivery Hero Holding GmbH Holtzbrinck Ventures Internet 33 Kite Ventures ru-Net Ventures Team Europe Ventures Tengelmann Ventures 01-Apr-2012 Funding Circle Ltd Index Ventures Internet 16 Union Square Ventures 29-Mar-2012 Hailo Network Ltd Accel Partners SW/IT 17 Atomico Ventures Wellington Partners

Note: Private placement transactions over $10 million where the company is headquartered in Europe Source: CapitalIQ, company information, Thomson, company press releases 36 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update 4 - Equity Capital Markets and M&A Update

European Private Placements YTD (CONT’D)

Date Announced Target Investor(s) Sector Amount ($MM) 20-Mar-2012 MyThings Ltd Iris Capital Internet 15 Accel Partners Carmel Ventures GP Bullhound T-Venture Holding 15-Mar-2012 Shoptime.ru KupiVIP Internet 50 15-Mar-2012 Tobii Technology AB Intel Capital CommTech 21 13-Mar-2012 eToro Spark Capital Internet 15 BRM 08-Mar-2012 Songkick.com Sequoia Capital Internet 10 27-Feb-2012 Vaultive Ltd 406 Ventures SW/IT 10 Harmony Partners New Science Ventures 13-Feb-2012 SHAPE Services GmbH Finam Capital Partners CommTech 10 13-Feb-2012 Oktogo.ru CJSC VTB Capital Internet 10 13-Feb-2012 Secret Sales Ltd Doughty Hanson Internet 10 Partech - OCP Innovation Fund Pentech Ventures 09-Feb-2012 Nivio AEC Partners CommTech 21 Videocon 02-Feb-2012 Stylistpick Ltd Fidelity Growth Partners Internet 11 Accel Partners Index Ventures 01-Feb-2012 VideoPlaza AB Qualcomm Ventures Internet 12 Innovacom 24-Jan-2012 Onavo Mobile Ltd Horizons Ventures CommTech 10 Magma Venture Partners Motorola Mobility Ventures Sequoia Capital 23-Jan-2012 Intelligent Apps GmbH Daimler AG CommTech 13 16-Jan-2012 BlablaCar Ltd Accel Partners Internet 10 Cabiedes & Partners ISAI 15-Jan-2012 Farfetch.com Ltd Index Ventures Internet 18 Advent Venture Partners eVenture Capital Partners 12-Jan-2012 Neolane SA Battery Ventures SW/IT 27 Auriga Partners Xange 10-Jan-2012 Takeaway.com BV Prime Ventures Internet 17 05-Jan-2012 Maxymiser Ltd Investor Growth Capital SW/IT 12 Pentech Ventures 04-Jan-2012 Unruly Media Ltd Amadeus Capital Partners Internet 25 Van den Ende & Deitmers UK Business Growth Fund 02-Jan-2012 SoundCloud Ltd Kleiner, Perkins, Caufield & Byers Internet 50

Number of Deals 50 Average Value ($MM) 21 Total Value ($MM) 1,058

Note: Private placement transactions over $10 million where the company is headquartered in Europe Source: CapitalIQ, company information, Thomson, company press releases 37 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY MEDIA &TELECOMMUNICATIONS MONITOR Market and Industry Update Disclaimer

This presentation was prepared by Piper Jaffray Ltd. exclusively for the benefit of the persons attending the presentation and any other persons to whom material used in the presentation is distributed by Piper Jaffray Ltd. The material used in relation to the presentation and any non-public information conveyed during the presentation is confidential and no part of that material or information may be disclosed or provided to any third party without the prior written permission of Piper Jaffray Ltd.

The material contained in this presentation is based upon data obtained from sources we deem to be reliable; however, no warranty is given as to the accuracy of the material, which does not purport to be complete. The information contained in the presentation and accompanying material is not intended to be used as the primary basis of investment decisions. It is not a representation by us or an offer or the solicitation of an offer to sell or buy any security. This presentation is a communication made in the United Kingdom by Piper Jaffray Ltd. to market counterparties or intermediate customers and is exclusively directed at such persons; it is not directed at private customers and any investment or services to which the communication may relate will not be available to private customers. No persons other than a market counterparty or an intermediate customer should read or rely on any of the information in this communication. Piper Jaffray Ltd. is authorised and regulated by the Financial Services Authority.

38 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2012 Piper Jaffray Ltd. All rights reserved.