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Piper Jaffray & Piper Jaffray & Co. Services Update Tracking Capital Markets and M&A Activity in Technology, Business & Learning Services May 1, 2007 John Lonnquist [email protected] 612 303-6308 Jerry Will [email protected] 612 303-6309 Kevin Jakuc [email protected] 612 303-6211 Technology, Business & Learning Services Index Summary Biggest Movers Since April 1, 2007 Financial information per Capital IQ. Forward estimates based on calendar years. % Chg % P/E Revenue EBITDA Last 4 Chg Ratios Multiples Multiples Top 10 Gainers % Chg % of Price Last 52-Week Sector Weeks YTD 2007 2008 2007 2008 2007 2008 Ticker Company Sector 4/31/07 Month High Technology Services DJ Dow Jones & Co. Inc. Publishing $56.00 62.5% 95.8% TFSM 24/7 Real Media Inc. Internet Software and Services $12.11 50.8% 93.2% Diversified IT Svcs. / IT Outsourcing 1.6% 6.0% 18.0x 14.0x 0.8x 0.7x 6.2x 6.0x CVNS Covansys Corp. IT Consulting and Other Services $33.46 35.6% 99.5% IT Consulting & Systems Integration 1.4% 18.5% 19.0x 16.6x 0.7x 0.7x 8.5x 8.5x PRAA Portfolio Recovery Associates Inc. Specialized Finance $55.82 25.0% 97.5% Government Technology Services (1.8%) (12.3%) 19.6x 15.7x 0.9x 0.8x 8.9x 7.6x CALL CallWave Inc. Application Software $3.55 24.1% 83.5% Offshore IT Services 1.2% (1.0%) 12.6x 8.3x 0.5x 0.5x 5.8x 4.2x BKR Michael Baker Corporation Construction and Engineering $30.01 23.5% 98.9% PPD Pre-Paid Legal Services Inc. Specialized Consumer Services $61.21 22.2% 99.3% Apps & Infra Mgmt Solutions 6.3% (8.2%) 36.8x 25.2x 1.3x 1.2x 10.2x 8.1x URI United Rentals, Inc. Trading Companies and Distributors $33.53 21.9% 88.6% Business Services ESI ITT Educational Services Inc. Education Services $99.15 21.7% 98.6% Information Services 2.5% 4.8% 19.7x 17.2x 2.8x 3.0x 10.9x 8.9x CDWC CDW Corp. Technology Distributors $74.42 21.1% 99.6% Publishing (0.5%) (3.9%) 19.3x 15.8x 1.4x 1.4x 7.6x 6.7x Top 10 Losers Specialty Consulting (0.5%) (1.6%) 18.8x 16.1x 1.5x 1.3x 9.7x 7.4x Advertising (3.2%) 1.9% 17.8x 16.0x 1.9x 1.7x 12.5x 12.9x MCHX Marchex Inc. Internet Software and Services $12.83 (16.3%) 56.4% LPSN LivePerson Inc. Internet Software and Services $6.75 (14.4%) 85.1% Marketing Services 2.3% 8.5% 16.6x 15.1x 1.6x 1.5x 7.8x 6.7x EXBD Corporate Executive Board Co. Diversified Commercial and Professional Services $65.60 (13.6%) 59.9% Marketing Research 1.4% 13.9% 34.2x 26.5x 2.5x 2.3x 12.4x 10.7x IGTE iGATE Corp. IT Consulting and Other Services $7.15 (13.2%) 82.0% CRM Services 0.3% 7.5% 18.9x 17.1x 0.9x 0.9x 8.7x 7.7x INOC Innotrac Corp. Diversified Commercial and Professional Services $2.41 (10.7%) 42.7% KELYA Kelly Services Inc. Human Resource and Employment Services $28.94 (10.1%) 85.2% HR Services (2.3%) 3.5% 20.1x 17.0x 1.1x 1.0x 8.2x 6.9x SCIL Scientific Learning Corp. Application Software $6.92 (9.4%) 89.6% Staffing (3.3%) (3.5%) 18.0x 15.5x 0.4x 0.4x 8.4x 7.4x LEE Lee Enterprises Inc. Publishing $27.38 (8.9%) 76.8% Engineering Services 5.4% 13.7% 19.9x 14.7x 0.6x 0.5x 10.6x 7.8x TGIS Thomas Group Inc. Diversified Commercial and Professional Services $10.86 (8.8%) 61.5% RHI Robert Half International Inc. Human Resource and Employment Services $33.81 (8.6%) 76.9% Distribution 6.6% 3.6% 13.1x 10.5x 0.3x 0.3x 7.8x 6.2x Other Business Services 5.8% 3.3% 17.3x 15.7x 1.0x 0.9x 7.9x 7.2x Learning Services Learning Svcs. - Postsecondary 3.2% 17.8% 29.5x 23.6x 2.2x 2.0x 12.6x 10.2x Learning Svcs. - Corporate Training 0.4% 26.7% 17.4x 12.6x 1.2x 1.1x 12.2x 8.6x Learning Svcs. - Pre K-12 (2.1%) (6.1%) 19.8x 16.4x 1.2x 1.1x 14.9x 10.9x S&P 500 4.3% 4.5% NASDAQ Composite 4.3% 4.5% Dow Jones Industrials 5.7% 4.8% Company News* Business Services Learning Services Technology Services 4/24/2007 Deluxe Corp. Q1 Profit Rises 40 Percent 4/30/2007 Learning Tree Revenue Climbs 6 Percent 4/25/2007 Computer Sciences Corp. Bids $1.3 Billion for Covansys 4/23/2007 Avery-Paxar Deal Gets OK From Feds 4/27/2007 DeVry Upgraded, Hits 52-Week High 4/13/2007 Google Buying DoubleClick for $3.1 Billion 4/1/2007 Xerox Offers 49% Premium to Global Imaging 4/17/2007 New Oriental Education Revenue Jumps 51 Percent 4/3/2007 Warburg Pincus Acquiring 25% Stake in Metavante *Source: Company Press Releases Piper Jaffray & Co. Services Update Tracking Capital Markets and M&A Activity in Technology, Business & Learning Services May 1, 2007 Total New Issue Market – Last Four Weeks Services Offerings – Last Twelve Months Amt Market % Chg % Chg Price % Return % Return To Pricing Date Issuer Ticker Offer Price Offered Value Amt FTO FTO 1-Day 04/30/07 Over the last four weeks, there were 69 transactions completed in the equity capital markets, raising a IPOs combined $17.59 billion. Deal activity was comprised of 12 IPOs, 38 follow-on offerings and 19 04/18/07 MetroPCS Communications Inc. PCS $23.00 $1,150.0 $7,963.7 15.0% 15.0% 19.1% 22.0% 04/04/07 Veraz Networks VRAZ $8.00 $72.0 $316.5 (27.3%) (27.3%) (2.5%) (13.1%) 03/28/07 Super Micro Computer Inc. SMCI $8.00 $64.0 $229.0 (23.8%) (23.8%) 9.5% 30.1% convertible offerings. 03/21/07 Glu Mobile Inc. GLUU $11.50 $84.0 $327.0 4.6% 4.6% 6.9% (2.3%) 03/14/07 BigBand Networks Inc. BBND $13.00 $160.0 $742.5 18.2% 18.2% 30.8% 57.5% 03/08/07 Sourcefire Inc. FIRE $15.00 $86.6 $346.7 15.4% 15.4% 3.3% (20.2%) 03/07/07 Clearwire Corp. CLWR $25.00 $600.0 $3,333.1 25.0% 4.2% (1.5%) (28.3%) 02/15/07 Salary.com SLRY $10.50 $10.5 $59.9 33.0% 16.7% 19.0% 14.3% 02/14/07 Opnext Inc. OPXT $15.00 $253.6 $930.2 7.1% 7.1% 16.0% (10.5%) 02/08/07 VeriChip Corp. CHIP $6.50 $20.2 $67.3 (37.5%) (13.3%) 0.0% (17.7%) 02/08/07 U.S. Auto Parts Network PRTS $10.00 $100.0 $298.3 (9.1%) (9.1%) 19.0% (42.0%) 02/07/07 Switch and Data Inc. SDXC $17.00 $198.3 $574.7 13.3% 13.3% 11.8% 7.8% 02/07/07 National CineMedia Inc. NCMI $21.00 $882.0 $798.0 10.5% 10.5% 22.2% 25.2% 02/05/07 Cellcom Israel Ltd. CEL $20.00 $400.0 $1,950.0 24.0% 17.6% (2.3%) (0.2%) 01/11/07 Syntel Inc. SYNT $29.00 $103.0 $1,191.8 27.1% 7.4% 9.2% 20.9% 12/14/06 Double-Take Software Inc. DBTK $11.00 $82.5 $225.5 10.0% 10.0% 15.1% 52.5% 12/14/06 Isilon Systems Inc. ISLN $13.00 $124.8 $786.4 44.4% 44.4% 77.7% (6.1%) Completed Offerings by Week - Last Twelve Months 12/12/06 Guidance Software Inc. GUID $11.50 $66.1 $253.7 (14.8%) (14.8%) 32.0% 13.1% 12/12/06 IPG Photonics Corp. IPGP $16.50 $170.8 $707.5 13.8% 13.8% 55.2% 10.2% 11/29/06 Netlist Inc. NLST $7.00 $43.8 $136.8 (12.5%) (12.5%) 15.7% (43.6%) 11/20/06 Willdan Group Inc. WLDN $10.00 $29.0 $67.1 3.6% 0.0% 5.6% (0.1%) 11/16/06 First Solar Inc. FSLR $20.00 $400.0 $1,387.8 27.0% 11.1% 23.7% 200.0% 11/15/06 Allot Communications Co. ALLT $12.00 $78.0 $251.0 20.0% 20.0% 15.1% (35.7%) 11/09/06 Capella Education Co. CPLA $20.00 $80.0 $307.3 8.1% 8.1% 25.6% 74.8% 50 11/08/06 Canadian Solar Inc. CSIQ $15.00 $115.5 $409.1 7.1% 7.1% 4.2% (29.0%) 11/02/06 Orbcomm, Inc. ORBC $11.00 $101.5 $399.4 (30.0%) (15.4%) (29.6%) 5.2% 1 11/01/06 Globalstar Inc. GSAT $17.00 $127.5 $1,196.4 15.4% 0.0% 3.1% (43.1%) 11/01/06 RRSat Global Communications RRST $12.50 $47.5 $208.4 4.2% 4.2% 20.2% 26.2% 10/26/06 Optium Corp. OPTM $17.50 $91.0 $428.9 20.7% 20.7% 12.0% 1.7% 45 10/19/06 EXLService Holdings Inc.
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