WIRELESS DATA SERVICES SECTOR REPORT

GCA SAVVIAN, LLC 150 CALIFORNIA STREET, SAN FRANCISCO, CA 94111 | www.gcasavvian.com |415.318.3600

MARKETMARKET HIGHLIGHTSHIGHLIGHTS Inside this issue  The 1 st quarter of 2008 saw a number of important events in the mobile data sector, including results of the 700 MHz spectrum auction, company announcements around the CES, Mobile World Congress and CTIA tradeshows, Market Highlights ’s acquisition of Danger rumored at $500MM and $100MM private capital raises from Modu and SpinVox. Summary Performance  In general, GCA Savvian’s wireless indices reflected the broader markets’ struggles in Q1: our wireless carrier index was off 31% while our mobile content and integrated wireless / wireline indices were in line with the , Observations down 13% and 10%, respectively; our infrastructure universe (up 3%) was the only index in positive territory. Trading Data  The domino effect following ’s announcement of a $99 per month unlimited calling plan contributed to stock Transaction Activity price declines for service providers as investors fear carriers have started down a slippery slope with respect to their longer-term pricing strategy and risk becoming simply raw bandwidth providers. GCA Savvian Update  In Q1, we tracked 21 M&A transactions within our wireless universe representing $335MM in disclosed value and 59 private companies that raised $480MM in . SUMMARY PERFORMANCE AV / Revenue AV / EBITDA Price / EPS CY 08E CY 09E CY 08E CY 09E CY 08E CY 09E San Francisco Office Mobile Content 1.5x 1.2x 15.2x 9.6x 31.0x 15.0x Infrastructure Providers 1.9x 2.2x 15.1x 12.8x 16.5x 14.8x 150 California Street Wireless Carriers 1.9x 1.6x 5.0x 4.9x 23.9x 18.0x Integrated Wireless / Wireline Carriers 1.8x 1.8x 5.0x 4.7x 12.9x 12.8x San Francisco, CA 94111 *Median Multiples 125 Phone: (415) 318-3600 3% 100 (10%) New York Office (13%) (13%) 7 Times Square 75 New York, NY 10036 (31%)

Phone: (212) 999-7090 Indexed Price 50

25 Chicago Office 1/01/08 1/11/08 1/25/08 2/08/08 2/21/08 3/05/08 3/18/08 3/31/08 71 S Wacker Drive Chicago, IL 60606 NASDAQ Composite Wireless Carriers Integrated Wireless / Wireline Infrastructure Providers Mobile Content Phone: (312) 212-8210 OBSERVATIONS Tokyo Office  The completion of the 700 MHz spectrum auction and expiration of its associated quiet period restrictions on 11-1 Marunouchi 1-chome carrier communications generated interesting news flow near the end of the quarter: Chiyoda-ku, Tokyo − AT&T (who acknowledged opening up to ’s Android platform) and Verizon were the big winners and intend to deliver 4G services over the newly acquired B- and C-Block spectrum utilizing LTE technology. 100-6230 Japan − Qualcomm spent >$500MM on 8 E-Block licenses to augment its MediaFLO network; stay tuned for adoption data Phone: +81-3-6212-7100 once AT&T launches this service month with exclusive content from Pictures Television and CNN. − EchoStar’s Dish Network was a surprise winner of E-Block spectrum, fueling speculation it also intends to offer broadcast mobile TV service, potentially leveraging SlingPlayer Mobile to differentiate the service. For further information, − Google acknowledged it had expected Verizon to outbid it for the C-Block and provided some insight into its bidding strategy that helped drive the spectrum price past the $4.6Bn hurdle that triggered the open applications and handsets please contact: license conditions it had lobbied for earlier in the process.  Some general observations pointing to continued mobile data momentum: Jim Avery − iPhone developments : T-Mobile reported average usage of 100MB by iPhone users (>30x its typical Managing Director consumer subscriber); Apple released the iPhone SDK to help drive enterprise adoption; launched a $100MM “iFund” dedicated to investing in iPhone applications; look for a 3G iPhone to launch in the coming months. Phone: (415) 318-3660 − Pricing plans : Responding to Verizon Wireless’ announcement of unlimited voice calling for $99 per month, T-Mobile [email protected] threw in unlimited text, MMS and for the same rate and Sprint further upped the ante by promoting unlimited voice and data for $99; continued movement toward flat rate plans bode well for mobile data growth. − Search : Yahoo! led Vlingo’s $20MM financing round and signed an exclusive licensing deal for the startup’s technology to differentiate its oneSearch offering by incorporating voice functionality to enhance its end user’s search Dick Filippini experience; Yahoo! is also opening up the oneSearch application to allow publishers to integrate relevant content, with Vice President a goal of providing “answers, not just Web links.” Phone: (415) 318-3688 − Gaming : finally launched its N-Gage Internet services platform for videogames, through which it intends to [email protected] differentiate its handsets by offering more rich graphics than games built on Java; N-Gage is also expected to drive mobile gaming growth by reducing the number of SKUs to which developers will need to port games. − : Nokia announced “Comes with Music,” a one year, unlimited music download service bundled with select phones for which it has initially partnered with Universal Music; Sony Ericsson announced PlayNow, a music portal with support from Sony BMG, EMI and Warner. WIRELESS UNIVERSE PERFORMANCE

10% 6% 5% 3% 1% (0%) 0% (1%) (4%) (3%) (10%) (6%) (7%) (10%) (13%) (13%) (20%)

(30%) (31%) Last Month YTD 1 Year (40%)

(43%) (50%) NASDAQ Composite Integrated Wireless / Wireless Carriers Infrastructure Mobile Content Wireline Providers

Best Performers – Last Month Best Performers – 1 Quarter Best Performers – 1 Year Openwave 19% Opera 18% Verisign 32% THQ 17% 8% NTELOS Holdings 26% NTELOS Holdings 14% Qualcomm 4% Opera Software 23% Opera Software 13% Sybase 1% Sybase 4%

WIRELESS COMPARABLE COMPANY UNIVERSE $MM, Except Per Share Data

Stock LTM EPS Price Price Range Equity Cash & Net Aggregate AV / Revenue AV / EBITDA Price / EPS Long Term Revenue Growth 3/31/08 Low High Value Equiv. Debt Value CY 08E CY 09E CY 08E CY 09E CY 08E CY 09E Growth PEG 09E/08E Y/Y MRQ Mobile Content

Electronic Arts Inc. $49.92 $43.62 $61.62 $15,814 $3,420 ($3,420) $12,394 2.9 x 2.5 x 19.1 x 14.1 x 31.7 x 22.6 x 19.0% 1.2 13.7% 17.3% THQ Inc. 21.80 16.36 36.76 1,450 325 (325) 1,125 1.0 0.9 15.2 8.8 23.2 15.0 17.6% 0.9 9.9% 7.1% RealNetworks Inc. 5.73 5.07 8.76 816 557 (443) 373 0.6 0.5 5.5 4.9 NM NM 22.7% NM 11.0% 24.9% GameLoft 4.34 3.76 10.54 317 28 (27) 289 1.5 1.2 14.6 9.6 31.0 14.5 3.5% 4.1 22.0% NA Glu Mobile Inc. 4.49 3.75 14.80 409 60 (60) 349 3.7 3.0 85.9 29.7 NM NM 25.0% NM 24.1% 26.8%

Mean 1.9NM x 1.6NM x 28.1NM x 13.4NM x 28.7NM x 17.4NM x 17.6%NM NM2.1 16.1%NM 19.1% Median 1.5NM 1.2NM 15.2NM 9.6NM 31.0NM 15.0NM 19.0%NM NM1.2 13.7%NM 21.1%

Infrastructure Providers

QUALCOMM Inc. $41.00 $35.17 $47.72 $66,104 $7,068 ($7,068) $59,036 5.8 x 5.3 x 15.1 x 13.5 x 19.1 x 17.3 x 19.0% 0.9 10.1% 20.9% Amdocs Ltd. 28.36 27.18 40.36 5,903 1,167 (715) 5,188 1.6 1.5 7.2 6.5 11.7 10.4 13.4% 0.8 10.5% 7.4% VeriSign Inc. 33.24 24.71 41.96 7,093 1,378 (112) 6,981 7.5 6.3 15.9 12.8 31.7 20.5 15.4% 1.3 18.9% (5.4%) Comverse Technology Inc. 15.40 13.42 28.95 3,111 2,325 (1,809) 1,302 0.6 0.6 3.6 NA 12.8 10.6 21.7% 0.5 11.0% 21.8% Sybase Inc. 26.30 21.80 28.70 2,345 698 (238) 2,107 1.9 1.8 6.5 6.1 13.9 12.3 11.0% 1.1 6.7% 15.1% Openwave Systems Inc. 2.45 1.20 10.58 204 232 (82) 122 0.5 NA 17.0 NA NM NA 15.0% NA NA (16.5%) Opera Software ASA 3.11 1.88 3.21 372 85 (85) 287 3.4 2.6 29.2 15.1 44.4 25.9 NA NA 32.1% NA

Mean 3.0 x 3.0 x 13.5 x 10.8 x 22.3 x 16.2 x 15.9% 0.9 14.9% 7.2% Median 1.9 2.2 15.1 12.8 16.5 14.8 15.2% 0.9 10.7% 11.3%

Wireless Carriers

Sprint Nextel Corp. $6.69 $5.48 $23.42 $18,559 $2,246 $19,884 $38,443 1.0 x 1.1 x 4.8 x 4.9 x 40.1 x 47.3 x 8.1% 5.9 (2.8%) (5.7%) MetroPCS Communications Inc. 17.00 13.68 40.87 5,918 1,470 1,557 7,476 2.6 2.0 9.5 7.1 31.9 22.4 39.1% 0.6 32.0% 30.5% U.S. Cellular Corp. 55.00 52.08 104.74 4,810 221 781 5,591 1.3 1.3 5.0 4.6 15.9 13.7 18.6% 0.7 4.7% 13.5% International Inc. 46.60 29.87 99.04 3,202 613 1,432 4,634 2.4 1.9 9.2 7.4 NM NM 20.1% NM 25.8% 36.6% Clearwire Corp. 14.81 10.10 35.41 2,432 944 313 2,745 11.7 6.6 NM NM NM NM 13.3% NM 76.9% NM Virgin Mobile USA Inc. 2.03 1.90 16.63 108 26 325 433 0.3 0.3 3.9 3.5 6.8 5.1 40.3% 0.1 3.4% NA

Mean 3.2 x 2.2 x 6.5 x 5.5 x 23.6 x 22.1 x 23.3% 1.8 23.3% 18.7% Median 1.9 1.6 5.0 4.9 23.9 18.0 19.3% 0.7 15.2% 22.0%

Integrated Wireless / Wireline Carriers

AT&T Inc. $38.30 $32.95 $42.97 $231,168 $1,970 $62,145 $293,313 2.3 x 2.3 x 6.1 x 5.7 x 12.1 x 10.8 x 9.1% 1.2 3.5% 94.9% Inc. 36.45 32.99 46.02 104,247 3,397 27,760 132,007 1.4 1.3 4.0 3.7 13.8 12.5 9.0% 1.4 3.7% 5.5% Telephone & Data Systems Inc. 39.27 37.84 73.67 4,620 3,092 (451) 4,169 0.8 0.8 2.9 2.7 12.1 13.2 19.7% 0.7 3.1% 10.5% NTELOS Holdings Corp. 24.20 18.47 33.02 1,019 53 561 1,579 3.1 2.9 7.3 6.5 28.4 21.7 17.4% 1.2 8.1% 12.4%

Mean 1.9 x 1.8 x 5.1 x 4.7 x 16.6 x 14.6 x 13.8% 1.1 4.6% 30.8% Median 1.8 1.8 5.0 4.7 12.9 12.8 13.3% 1.2 3.6% 11.4%

Notes: Source: , FactSet and Street Estimates. Multiples <0 or >100 considered NM. (1) Comverse is delinquent in its filings; share count is per most recent filing dated October 31, 2005. GCA SAVVIAN, LLC 150 CALIFORNIA STREET, SAN FRANCISCO, CA 94111 | www.gcasavvian.com | 415.318.3600 SELECTED MERGERS & ACQUISITIONS ACTIVITY ($MM)

Announced Aggregate AV / NTM Acquirer Target Equity Deal Value AV / LTM Sales AV / LTM EBITDA AV / NTM Sales Date Value EBITDA

3/17/08 LiveWire Mobile Groove Mobile(1) $15MM (cash) $15 1.9x NA NA NA 3/11/08 FunMobility Moblastic Corporation Undisclosed NA NA NA NA NA 3/11/08 Qualcomm Xiam Technologies $32MM (cash) $32 NA NA NA NA 2/11/08 Microsoft Danger Undisclosed NA NA NA NA NA 1/28/08 Nokia Trolltech $154MM (cash) $136 3.4x NM NA NA 1/23/08 Glu Mobile Superscape(1) $36MM (cash) $25 1.8x NM 2.1x NA

Note: (1) LTM and MTN sales estimates per Wall Street research.

SELECTED FINANCING ACTIVITY ($MM)

Amount Total Capital Date Company Investors Raised Invested Business Description

3/31/08 Mobango Innogest, Doughty Hanson $5.7 $8.3 Mobile content sharing service Mayfield Fund, Cardinal Venture Capital, Garage Technology Ventures, 3/31/08 Razz $2.5 $11.9 Provides audio entertainment software and services for mobile phones Greenpark Capital 3/27/08 Agentek Edison Venture Fund $8.0 $8.0 Provides mobile software solutions for field employees 3/26/08 Bubble Sequoia Capital, Comcast Interactive Capital, NCD Investors $14.0 $24.3 Pioneer of voice SMS 3/26/08 Action Engine Northwest Venture Associates, OVP Venture Partners, Baker Capital $6.5 $60.6 Mobile content applications firm 3/26/08 Viva! Vision Medical Capital Corp $2.0 $2.0 Provides content and applications for mobile entertainment 3/26/08 Tapioca Mobile Venrock $5.0 $5.5 Provides rich multimedia messaging solutions for mobile users Develops modular cellphone platform that can be tailored to provide 3/24/08 Modu NA $100.0 $120.0 additional functionality, such as music players and cameras 3/20/08 SpinVox GLG Partners, , BlueMountain, Toscafund Management $100.0 NA Voice to screen messaging service 3/19/08 LightPole Alloy Ventures NA NA Provides location based application for mobile devices 3/19/08 FRiENDi Mobile DFJ ePlanet Ventures $10.0 $10.0 MVNO focused on the Middle East and North Africa 3/18/08 SendMe Mobile GrandBanks Capital, Amicus Capital, Spark Capital, True Ventures $15.0 $21.2 Develops mobile entertainment applications Brookside Capital Partners, Cross Creek Capital , SOFTBANK Capital, i-Hatch 3/17/08 Thumbplay $18.0 $53.7 Provides mobile multimedia content Ventures 3/17/08 Gizmoz DoCoMo Capital, Benchmark Capital, Columbia Capital, NGI Group $6.5 $37.1 Mobile animation platform 3/12/08 Invoke Solutions Bain Capital, North Atlantic Capital, BEV Capital $14.5 $46.0 Provides real-time online and mobile research services 3/7/08 Rapid Mobile Media NEA, Alliance Trust Equity Partners, Penta Capital, Scottish Enterprise $3.1 $4.2 Mobile advertising platform 3/5/08 heysan! Khosla Ventures, Y Combinator $1.0 NA Mobile instant messaging service 3/5/08 NewBay Software Fidelity Ventures , Benchmark Capital $10.0 $14.0 Provides digital lifestyle solutions for mobile operators Institutional Venture Partners, Advanced Technology Ventures, SSM Partners, 3/4/08 $9.5 $88.7 Provides content CenterPoint Venture Partners, NeoCarta Ventures, Pharos Capital 3/3/08 Zoove Cardinal Venture Capital, Highland Capital, Worldview Technology Partners $15.7 $23.4 Mobile marketing firm 2/27/08 FusionOne El Dorado Ventures, BlueRun Ventures, Vesbridge Partners $3.1 $148.0 Provides mobile content backup services 2/26/08 Tiny Pictures Draper Fisher Jurvetson, Mohr Davidow Ventures $7.2 $10.0 Service for sharing cameraphone pictures and 2/26/08 Morpho Nokia Growth Partners $1.5 $1.5 Provides imaging software for mobile devices 2/11/08 Digit Wireless Venrock Associates, Qualcomm Ventures, TELUS Ventures $4.0 $9.5 Provides mobile device interface solutions 2/10/08 Vaultus Mobile Point Judith Capital, Susquehanna International Group, IDG Ventures $6.0 $73.2 Extends business-critical applications to handheld devices 2/10/08 Cellfire Silver Creek Ventures, Menlo Ventures, Storm Ventures $12.1 $24.8 Provides mobile coupon service 2/10/08 PublicEarth Polaris Venture Partners $3.0 $3.0 Develops database of location-specific content 2//8/08 Acuity Mobile Navteq NA NA Mobile location-based advertising service provider 2//8/08 XinLab New Enterprise Associates $6.9 $6.9 Delivers streaming to mobile devices 2/6/08 a la mobile Venrock Associates $6.8 $10.3 Open source technology provider for mobile phones 2/6/08 Numobiq Benchmark Capital $6.5 $6.6 Develops software to transform regular handsets into 2/5/08 eBuddy.com Prime Technology Ventures $9.6 $16.0 Provides mobile instant messaging solutions 2/4/08 Ringleader Digital W2 Innovations $6.0 $6.0 Mobile ad serving company and publisher network 2/1/08 MocoSpace General Catalyst Partners $4.0 $7.0 Provides mobile social networking community services 1/30/08 Goldspot Media Exa Ventures $3.0 $3.0 Provides ad-insertion technology for mobile TV broadcast networks 1/30/08 mig33 Accel Partners, Redpoint Ventures, Technology Venture Partners, DCM $13.5 $23.5 Develops mobile software for VoIP, instant messaging and SMS 1/28/08 ShoZu SEB Venture Capital, Atlas Venture, Crescendo Ventures, TTP Ventures $14.5 $386.1 Provides software to stream data from handset to Internet 1/28/08 Teleflip GRP Partners $2.6 $4.9 Develops software that changes users emails into text Norwest Equity Partners, Novus Ventures, Scale Venture Partners, Avanti Capital, 1/28/08 Mblox $22.2 $66.8 Mobile billing and messaging company Capital 1/25/08 Smarter Agent LLR Partners, Quaker Bio Ventures, Versa Capital $6.2 $6.2 Mobile location-triggered real estate search 1/25/08 IMMI WPP, Draper Fisher Jurvetson, Advanced Technology Ventures $25.0 $40.0 Mobile-based ad tracking and research firm 1/25/08 Gogii Games Kleiner Perkins Caufield & Byers $5.2 $5.2 Develops and publishes casual games 1/23/08 United Mobile Accel Partners , Grazia Equity $15.0 $15.0 Prepaid MVNO for business and leisure travelers 1/23/08 Ad Infuse SOFTBANK Capital , Storm Ventures, Velocity Interactive Group $12.0 $17.6 Provides personalized mobile advertising solutions 1/21/08 Momail Swedish 6th Pension Fund, Bonnier Invest $5.4 $5.4 Mobile email provider 1/21/08 Smaato Aeris Capital $3.5 $3.5 Mobile advertising platform 1/14/08 Kadoink Sutter Hill Ventures $7.0 NA Mobile social networking widget provider 1/10/08 Jingle Networks Goldman Sachs, Flybridge Capital, Liberty Partners, First Round Capital $13.0 $73.9 Operates a national consumer telephone directory assistance service 1/10/08 Blue Crest Capital Finance $10.0 $73.8 Youth focused MVNO 1/8/08 SoonR , Intel Capital, Clearstone Venture Partners $9.5 $15.5 Provides mobile access to PC-based information 1/8/08 MMIM Technologies Crosslink Capital, IDG Venture Capital, BlueRun Ventures $10.0 $16.0 Provides mobile multimedia IM and information services 1/8/08 Palringo DFJ ePlanet Ventures, Prime Technology Ventures, NSTAR, NTEC $5.0 $5.0 Offers a mobile and PC instant messaging application 1/3/08 betNOW Balderton Capital $5.0 $5.0 Mobile betting service

GCA SAVVIAN, LLC 150 CALIFORNIA STREET, SAN FRANCISCO, CA 94111 | www.gcasavvian.com | 415.318.3600 SELECTED GCA SAVVIAN COMMUNICATIONS TRANSACTIONS

Acquisition of Merger with Acquisition of Acquired by Acquired by

Mobile Services Leading Mobile OEM Business Unit

We Advised Lumera We advised the buyer We advised the seller We advised the buyer We advised the seller

Strategic IP License for High End Network Processor Has sold its CDN Technology from Common Stock Services Business to Preferred Secondary Public Equity & Stock Offering Convertible Debt

We advised Netronome Financial Advisor Financial Advisor Financial Advisor We advised the seller

Acquired by Acquired by Acquired by

Senior Credit Minority Facility Recapitalization

We advised the seller We advised the seller Financial Advisor We advised the seller Financial Advisor

Acquisition of Acquired by Acquired by Convertible Preferred Stock PIPE

We advised the seller We advised the seller Financial Advisor Placement Agent We advised the buyer

ABOUT GCA SAVVIAN ADVISORS, LLC

GCA Savvian Advisors, LLC is a leading investment bank serving growth companies through its merger and acquisition advisory and capital market financing services. GCA Savvian professionals cover a broad array of industries, including the technology, media, communications, healthcare, business services, financial technology and consumer commerce sectors. GCA Savvian has offices in San Francisco, Chicago, New York and Tokyo.

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GCA SAVVIAN, LLC 150 CALIFORNIA STREET, SAN FRANCISCO, CA 94111 | www.gcasavvian.com | 415.318.3600