M&A Transaction Spotlight

Capstone Partners Investment Banking Advisors

Mobile M&A and Valuation Update

Q1 2014

BOSTON  CHICAGO  LONDON  LOS ANGELES  PHILADELPHIA  SAN DIEGO  SILICON VALLEY

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 1 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.1 BUILT FOR THE MIDDLE MARKET.TM

Table of Contents

Section Page

Introduction  Research Coverage: Mobile 4  Key Takeaways 5-6

M&A Activity & Multiples  M&A Dollar Volume 8  M&A Transaction Volume 9-11  LTM Revenue Multiples 12-13  Revenue Multiples by Segment 14  Highest Revenue Multiple Transactions 15  Notable M&A Transactions 16  Most Active Buyers 17-18

Public Company Valuation & Operating Metrics  Mobile 135 Public Company Universe 20-22  Recent IPOs 23  Stock Price Performance 24  LTM Revenue, EBITDA & P/E Multiples 25-27  Revenue, EBITDA and EPS Growth 28-30  Margin Analysis 31-32  Best / Worst Performers 33-34

Notable Transaction Profiles 36-45 Public Company Trading & Operating Metrics 47-53 Technology & Telecom Team 55-57

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 2 Investment Banking Advisors 2

Capstone Partners Investment Banking Advisors

Observations and Introduction Recommendations

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Research Coverage: Mobile

 Capstone’s Technology & Telecom Group focuses its research efforts on the following market segments:

Enterprise SaaS & Mobile Consumer Internet Cloud

 App Stores & Content Aggregators  Carrier Back Office  Games / Virtual Goods  M-Commerce Enablement  Messaging & VoIP  Mobile / Local Marketing E-Commerce Consumer, IT &  Mobile Devices Telecom Hardware  Mobile OS & Utility SW  Mobility & Monitoring  Portals & Social Networks  Search, Referral & Navigation  Video, Music & eBooks  Wireless Network Equipment  Wireless Network Operators  Wireless Semiconductors

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 4 Investment Banking Advisors 4

Key Takeaways – M&A Activity & Multiples

 M&A dollar volume has surged to $132.2B in LTM from $102.0B in 2013  An increase of nearly $30B in private company M&A dollar volume of has fueled the growth  Transaction volume remains strong with 521 deals LTM  Wireless Network Operators, Mobility & Monitoring, Mobile OS & Utility Software, Mobile/Local Marketing and m- Commerce enablement segments were particularly active with 50+ LTM deals in each segment  Private company deal volume strength continues with over 500 deals LTM  The median deal value increased to a five year high of $35M in LTM  Public company median deal value jumped to a five year high of $719M in LTM  M&A transactions with values greater than $500M constituted more than 60% public target deals in LTM  M&A valuations vary considerably across the various Mobile segments with Wireless Tower and hot Software segments commanding more than 4x revenue while the majority of segments trade in the 1-3x range  Notable M&A transactions in Q1’14  Facebook / WhatsApp($19B)  Facebook / Oculus($2.3B)  Zynga / NaturalMotion($527M)  T-Mobile / Verizon($3.3B)  VMWare / AirWatch($1.5B)  Thales / LiveTV($400M)

 Lenovo / Motorola($2.9B)  Alibaba / AutoNavi($1.2B)  Iliad / Bouygues($2.5B)  Rakuten / Viber($900M)

 Most active buyers include Yahoo!, Facebook, Google, Apple, Intel, Groupon, Twitter, American Tower, AT&T, Cisco & Dropbox  Capstone expects the robust M&A activity and attractive exit valuations in Mobile to continue through 2014  There is some risk that an abrupt market correction could negatively impact activity levels and valuation multiples but to date the corrections have been limited to underperformers and stocks with frothy valuation multiples

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 5 Investment Banking Advisors 5

Key Takeaways – Public Company Metrics

 Q1’14 saw just one IPO company, King Digital, added to the Mobile 135, with middling performance  King Digital (Candy Crush) was priced at $22.50, opened at $20.50 and ended Q1’13 at $18.19  Mobile 135 median gain has performed on par with NASDAQ over the past year  The Mobile 135 median gain for Q1 was 1.8%, slightly higher than the NASDAQ’s 0.5% gain  Wireless Semis leads with 9.5% gains over the last quarter with M-Commerce Enablement and Mobile / Local Marketing next at 6.6% and 3.9% gains, respectively  Median LTM Revenue Multiple of 3.4x represents a five year high amid increased confidence in future growth as the market recovery continues  Medians vary significantly with Wireless Towers at 11.9x and Carrier Back Office at just 1.1x  Median LTM EBITDA multiples continued to recover, jumping to a five year high of 12.4x  Just two segments are trading at medians below 10.0x 2013 EBITDA, Wireless Network and Carrier Back Office  Median P/E multiples continue to climb, reaching 20.0x which is near the 5 year high  All segments trade above at or above15x with four segments above 30x  Mobile 135 median revenue growth decreased to 10.2% in LTM, but is expected to rise up to 11.1% for NTM  Five segments are projecting median NTM revenue growth of over 20% while five are projecting single digit median growth rates  Median EBITDA growth increased slightly to 8.1% in LTM from 7.4% in 2013  Median gross margins returned back to 50%+ levels in 2012 and currently stand at 52.5% in LTM, a new five year high  Median EBITDA margins increased slightly to 22.4% in LTM from 22.1% in 2013

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Capstone Partners Investment Banking Advisors

M&AObservations Activity & and MultiplesRecommendations

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LTM M&A Dollar Volume

 M&A dollar volume has surged to $132.2B in LTM from $102.0B in 2013  An increase of nearly $30B in private company M&A dollar volume of has fueled the growth  Facebook spending $21.3B on its WhatsApp and Oculus deals helped buoy Private deal dollars  Dollar volume also tends to be driven by multi-billion dollar carrier deals and is not necessarily indicative of trends across all mobile segments $140,000

$120,000

$45,527 $100,000

$80,000 $44,556

$60,000 $51,530 $22,005

TotalTransaction Value $86,679 $40,000 $44,921

$10,534 $57,474

$20,000 $35,302 $40,297 $25,194 $18,724 $0 2009 2010 2011 2012 2013 LTM

Total Private $ Total Public $

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LTM M&A Transaction Volume by Segment

 Transaction volume remains above 500 deals per annum, though slightly below the 2011 high  Wireless Network Operators, Mobility & Monitoring, Mobile OS & Utility Software, Mobile/Local Marketing and m- Commerce enablement segments were particularly active with 50+ LTM deals in each segment

600

6 23 67 8 5 500 55 61 53 11 17 14 14 15 14 7 17 19 37 20 29 400 34 46 51 45 42 5 35 16 7 11 18 21 16 41 67 80 65 300 20 38 23 17 81 38 6 32 71 75 18 11 60

Transactions 64 200 33 50 31 29 15 14 41 33 16 48 30 7 6 58 61 39 66 15 42 100 26 22 26 30 25 18 43 23 25 51 15 34 42 26 33 27 22 36 27 0 13 13 11 12 11 11 2009 2010 2011 2012 2013 LTM Apps Stores & Content Aggregators Carrier Back Office m-Commerce Enablement Messaging & VoIP Mobile / Local Marketing Mobile Devices Mobile Games / Virtual Goods Mobile OS & Utility Software Mobility & Monitoring Portals & Social Networks Search, Referral & Navigation Video, Music & eBooks Wireless Network Equipment Wireless Network Operators Wireless Semis Wireless Tower

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LTM M&A Transaction Volume by Deal Size – Private Targets

 Private company deal volume of 500 LTM is in line with 2013, though dollar volume jumped considerably  20 billion dollar private deals in LTM set a new five year high  The median deal value increased to a five year high of $35M, with 20% of deals above $500M

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LTM M&A Transaction Volume by Deal Size – Public Targets

 Public target M&A transaction volume remains stable, though deal mix has shifted toward larger transactions  $1B+ transaction activity remains in line with recent years at five $1B+ deals in LTM  Median deal size jumped to $719M in LTM as deal mix has shifted toward larger transactions with two thirds of transactions over $500M

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LTM Revenue Multiples – Private Targets

 The Median LTM Revenue Multiple paid for private company targets recovered to 2.8x in LTM  There were 9 small deals (<$20M)with multiples of less than 1.0x in LTM  Excluding small deals (<$20M), the Median Revenue Multiple for Software & Services is 4.0x for LTM  Hot companies and sectors can achieve double digit multiples upon exit but those are the exception with most companies being acquired at more modest multiples

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LTM Revenue Multiples – Public Targets

 The Median LTM Revenue Multiple paid for public company targets improved for Mobile Software & Services to a five year high of 2.1x, though Hardware remains flat with recent years  With less than 20 public company target data points in a given year, the median multiple tends to be quite volatile so it is difficult to reliably draw conclusions on M&A valuation trends

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Median Revenue Multiples by Segment – 2009 to Current

 M&A valuations vary considerably across the various Mobile segments  The premium multiples paid for Wireless Tower companies are driven by high margins and stable cash flows  m-Commerce Enablement, Mobile/Local Marketing, Mobile Games/Virtual Goods and Mobile OS & Utility Software represent the hottest segments in mobile software with median multiples of 4x+ while most other segments trade in the 1-3x range

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Highest Revenue Multiple Transactions for LTM

LTM Multiple Premium Deal Ann. Date Buyer Target Segment Target Description Revenue on $ to 1 Mo Value Multiple Invested Prior

Mobile Games / Provides iOS-based free-to-play mobile video games for 10/15/13 $1.5B 29.0x 10.8x NA Virtual Goods consumers

Provides financial anti-fraud software and SaaS to businesses Cloud & IT 8/15/13 globally. Also provides anti-malware, endpoint integrity and $900M 25.7x 90.0x NA Infrastructure mobile device security software Provides mobile device management (MDM) software and Mobility & 1/22/14 mobile application, content and security management $1.5B 15.4x 6.8x NA Monitoring software for various mobile operating systems for businesses Provides 3G, LTE and WiFi base stations and related Wireless Network 4/3/13 management software for wireless telecom service providers $310M 13.7x 3.8x NA Equipment globally Provides marketing automation, social media marketing, Mobile / Local 6/27/13 mobile marketing, customer analytics and campaign $600M 10.3x 17.3x NA Marketing management software to businesses globally

Mobile Games / Designs, develops and publishes mobile social games featuring 1/30/14 $527M 8.5x 26.0x NA Virtual Goods 3D character animation

Wireless Network Provides fixed satellite services; offers satellite transmission 7/31/13 $1.19B 8.5x NA NA Operators capacity for fixed and mobile telephone networks

Search, Referral & 2/10/14 Provides digital map content and navigation solutions in China $1.2B 8.2x NA 31.6% Navigation

Cloud & IT Provides mobile device and application management software 11/13/13 $300M 6.0x 3.6x NA Infrastructure and SaaS for small, medium and large businesses

Provides fixed-line and mobile telephone, broadband Internet, Wireless Network 6/24/13 and cable TV services for businesses and consumers in $10.2B 5.9x NA 20.2% Operators Germany Sorted by LTM Revenue Multiple Excludes deals with Target company revenue less than $2M

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Notable M&A Transactions for Q1’14

LTM Multiple Premium Deal Ann. Date Buyer Target Segment Target Description Revenue on $ to 1 Mo Value Multiple Invested Prior

Messaging & Provides mobile messaging applications across Android, iOS, 2/9/14 $19.0B NA 325.9x NA VoIP Windows Mobile and Blackberry operating systems

Wireless Verizon Wireless’ low-band A-block spectrum located in New 1/6/14 Network York, Los Angeles, Dallas, Houston, Philadelphia, Atlanta, $3.3B NA NA NA Operators Washington D.C., and Detroit

Motorola Mobility's smartphone assets, including the Motorola 1/29/14 Mobile Devices $2.9B 0.6x 0.2x NA brand and mobile device assets

Wireless Bouygues Telecom’s mobile network, which provides wireless 3/10/14 Network voice and data telecommunications services to consumers in $2.5B NA NA NA Operators France

Designs and develops virtual reality-focused head-mounted 3/25/14 Mobile Gaming $2.3B* NA 24.6x NA displays used as part of an immersive gaming environment

Provides mobile device management (MDM) software and Mobility & 1/22/14 mobile application, content and security management software $1.5B 15.4x 6.8x NA Monitoring for various mobile operating systems for businesses

Search, Referral 2/10/14 Provides digital map content and navigation solutions in China $1.2B 8.2x NA 31.6% & Navigation

Messaging & Provides a mobile and desktop messaging application for iOS, 2/14/14 $900M 593.7x NA NA VoIP Android, Blackberry and Windows users

Mobile Games / Designs, develops and publishes mobile social games featuring 1/30/14 $527M 8.5x 26.0x NA Virtual Goods 3D character animation

Wireless Provides In-flight satellite television and radio content for 3/14/14 Network $400M 5.6x 5.0x NA passenger airlines globally Operators

Sorted by Deal Value (*) Transaction value includes earnout

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Most Active Mobile Buyers – Last 2 Years

# of Deals Mobile Transactions Company Mobile Total Date Company Value Date Company Value 2/11/14 Wander $10M 7/17/13 AdMovate NA 1/30/14 Incredible Labs NA 7/2/13 Qwiki $50M 1/29/14 Tomfoolery $16M 7/1/13 Bignoggins Productions NA 1/21/14 Sparq NA 6/13/13 GhostBird Software NA 1/7/14 ThumbsUp Labs NA 5/10/13 Loki Studios NA 20 38 12/9/13 Quik.io NA 5/1/13 Todoroo NA 12/3/13 DWA Investments NA 3/25/13 Summly $30M 10/1/13 HitPost NA 3/20/13 Jybe NA 8/24/13 IQ Engines NA 2/12/13 Propeld NA 8/2/13 Rockmelt $60M 9/11/12 Community Factory $13M 3/25/14 Oculus VR $2.3B NA 7/20/12 Acrylic Software 2/19/14 WhatsApp $19.0B NA 7/14/12 Spool 12/17/13 SportStream NA NA 6/11/12 Pieceable 10/14/13 Onavo $150M $80M 5/18/12 Karma Science 15 24 8/23/13 Midnox NA NA 5/15/12 Lightbox 8/12/13 Mobile Technologies NA NA 5/5/12 Glancee 4/25/13 Parse $85M $1.0B 4/9/12 Instagram 4/23/13 Spaceport NA 3/11/14 Green Throttle Games NA 6/11/13 Waze $966M 1/4/14 Bitspin NA 4/23/13 wavii $30M 10/22/13 FlexyCore $22M 9/17/12 Nik Software NA 10/2/13 Flutter NA 13 44 7/20/12 Sparrow NA 10/2/13 Bot Square NA 6/5/12 Quickoffice NA 9/16/13 Bump Technologies $60M 6/4/12 Magnolia NA 8/30/13 WIMM Labs NA 2/21/14 Burstly NA 8/22/13 Embark NA 1/6/14 SnappyLabs NA 8/1/13 Passif Semiconductor $50M 12/23/13 Catch.com NA 7/19/13 Hopstop.com NA 12 14 11/24/13 PrimeSense NA 7/19/13 Locationary NA 10/3/13 Cue $40M 3/25/13 WiFiSLAM $20M 8/28/13 AlgoTrim NA 7/27/12 AuthenTec $400M

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# of Deals Mobile Transactions Company Mobile Total Date Company Value Date Company Value 12/16/13 Mindspeed Technologies NA 2/22/13 appMobi (Developer Tools) NA 9/13/13 Indisys $26M 2/20/13 FlyCast (Development Tools) NA 8/13/13 Fujitsu Semiconductor Assets NA 9 28 11/19/12 ZiiLABS $30M 5/28/13 ST-Ericsson GNSS Business NA 618/12 InterDigital (1,700 patents) $375M 4/24/13 Aepona $120M 1/13/14 ideeli $43M 9/24/12 VillageVines $20M 9/9/13 Innovate Mobile Apps NA 5/29/12 Breadcrumb NA Europe 8 13 4/17/12 Pingpin NA 8/12/13 Plumfare NA 2/18/12 Kima Labs NA 1/11/13 Ansible Technologies NA 9/9/13 MoPub $350M 1/28/13 Crashlytics NA 6/19/13 Spindle Labs NA 10/16/12 Cabana NA 8 18 5/13/13 Lucky Sort NA 10/9/12 Vine NA 3/13/13 We Are Hunted NA 8/13/12 Boilerplate NA 9/6/13 Global Tower $4.8B 1/31/13 Axtel $250M 5 8 8/9/13 NII Holdings (Brazil Towers) $413M 11/15/12 KPN (2,000 German tower $499M 8/9/13 NII Holdings (Mexico Towers) $398M sites) 1/7/14 Aloha Partners NA 1/22/13 Atlantic Tele-Network $780M 7/12/13 Leap Wireless $4.9B 8/2/12 NextWave Wireless $50M 5 21 1/25/14 Verizon Wireless (700 MHz B $1.9B

band spectrum) 12/17/13 Kibits NA 12/18/12 BroadHop NA 5 18 4/3/13 Ubiquisys $310M 11/29/12 Cariden Technologies $141M 1/23/13 Intucell $475M 11/4/13 Sold NA 12/12/12 AG Entertainment NA 5 10 7/20/13 Endorse NA 7/18/12 TapEngage NA 3/15/13 Orchestra $100M

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Capstone Partners Investment Banking Advisors

Public Company Observations and Valuation & OperatingRecommendations Metrics

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Mobile 135 Public Company Universe – Part 1

App Stores & Content Aggregation

Carrier Back Office

Games / Virtual Goods

M-Commerce Enablement

Messaging & VoIP

Mobile / Local Marketing

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Mobile 135 Public Company Universe – Part 2

Mobile Devices

Mobile OS & Utility Software

Mobility & Monitoring

Portals & Social Networks

Search, Referral & Navigation

Video, Music & eBooks

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Mobile 135 Public Company Universe – Part 3

Wireless Network Equipment

Wireless Network Operators

Wireless Semiconductors

Wireless Tower

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Recent IPOs – King Digital

IPO Details Business Description Offering Date: 3/25/14 Market Cap: $7.1B An interactive entertainment company well known for it’s Offering Price: $22.50 Offering Size: $500M popular game “Candy Crush”, develops and publishes social games on digital platforms. Original Range: $21.00-$24.00 % of Company: 7.0%

IPO Performance HQ: Dublin, Ireland Ticker: NYSE: KING Open: $20.50 3/31 $/share: $18.19 % Change to Offer: (8.9)% % Change to Offer: (19.2)% Stock Performance thru End of Q1’14 Close: $19.00 % Change to Open: (11.3)% % Change to Offer: (15.6)% % Change to Open: (7.3)%

Financial & Valuation Metrics LTM Revenue: $1.9B LTM Rev Growth: 1,046.1% LTM EBITDA: $720.3M Gross Margin: 69.0% LTM Net Income: $567.6M EBITDA Margin: 38.2% Mkt Cap / $ Invested: Rev Multiple: 2.9x

Investors Apax Partners; Bellaria Holding; Index Ventures

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Median Stock Performance – Mobile 135

 Mobile 135 median gain has performed on par with NASDAQ over the past year  The Mobile 135 median gain for Q1 was 1.8%, slightly higher than the NASDAQ’s 0.5% gain  Wireless Semis leads with 9.5% gains over the last quarter with M-Commerce Enablement and Mobile / Local Marketing next at 6.6% and 3.5% gains, respectively  Games / Virtual Goods, Video, Music & eBooks and Wireless Network Operators lagged with median gains of -3% or less

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Median LTM Revenue Multiples – Mobile 135

 Median LTM Revenue Multiple of 3.4x represents a five year high amid increased confidence in future growth as the market recovery continues  Within Mobile, several segments trade at premium multiples  Wireless Tower consistently commands high revenue multiples based on strong margins and stable cash flow  Search, Referral & Navigation and Portals & Social Networks all trade above 5x  Carrier Back Office median is just 1.1x, though Synchronoss and Neustar trade above 3.5x

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Median LTM EBITDA Multiples – Mobile 135

 Median LTM EBITDA multiples continued to recover, jumping to a five year high of 12.4x  Mobility & Monitoring, Search, Referral & Navigation and Wireless Tower segments trade at over 20x  Only two Mobile segments are trading at medians below 10x 2013 EBITDA

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Median LTM P/E Multiples – Mobile 135

 Median P/E multiple of 20.0x remains around the five year high  P/E multiples have recovered after a 2011-2012 drop as investors are again valuing on future profit expectations  All segments trade above at or above15x with four segments above 30x  Investors are willing to pay a high multiple for well-positioned mobile companies and hot segments as the trend towards mobility proliferates

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Median Revenue Growth – Mobile 135

 Mobile 135 median revenue growth slipped slightly to 10.2% LTM but is expected to increase to 11.1% NTM  The median growth rate is being dragged down by the fact that lower growth segments such as Wireless Network Operators, Mobile Devices and Wireless Semis represent one-third of the Mobile 135  Five segments are projecting median NTM revenue growth of over 20% while five are projecting single digit median growth rates

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Median EBITDA Growth – Mobile 135

 Median EBITDA growth increased slightly to 8.1% in LTM with strong NTM growth projected  Strong EBITDA growth in 2011 was driven by weaker prior year periods as the economy recovered  A return to double digit EBITDA growth is expected for NTM with a median growth rate of 19.4%  Only two segments, Carrier Back Office and Wireless Network Operators, project single digit growth while half the segments project ~30%+ growth

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Median EPS Growth – Mobile 135

 Median EPS growth decreased to 5.9% in LTM though improved growth is projected  EPS growth is expected to significantly accelerate in NTM to a median of 12.0%  Apps Stores & Content Aggregation, Portals & Social Networks and Wireless Tower exhibit EPS growth projection of over 25%  Only four segments project single digit EPS growth NTM

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Median Gross Margin Trends – Mobile 135

 Median gross margins improved to 52.5%, a new five year high  Search, Referral & Navigation tops the list at 71.4% as cost to serve is relatively small  The more commoditized Carrier Back Office, Video, Music & eBooks, Mobile Devices and App Stores & Content Aggregation segments lag behind at gross margins below 40% as vendors face pricing pressure

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Median EBITDA Margin Trends – Mobile 135

 Median EBITDA margins improved slightly to 22.4%, matching their five year high  Nearly half of the Mobile segments generate median EBITDA margins of more than 20%  Wireless Tower companies deliver the strongest EBITDA Margins at 55.3%, producing strong cash flow  Low gross margins for Video, Music & eBooks segment translates to weak EBITDA margins

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Best & Worst Performers – Mobile 135

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Best & Worst Performers – Mobile 135 (Continued)

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Capstone Partners Investment Banking Advisors

Notable Observations and Transaction ProfilesRecommendations

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

WhatsApp provides a cross-platform mobile messaging application for smartphones that allows users to exchange messages on a data network bypassing carrier SMS charges. Deal Summary WhatsApp currently has more than 450 million monthly Date: 2/19/2014 active users (MAU), over 320 million daily active users (DAU) Transaction Value: $19.0B and adds more than 1 million new registered users per day. % Sought: 100% With the acquisition of WhatsApp, Facebook has now Consideration: Cash, Equity opened up a new channel to maintain their user growth rates by tapping into developing markets where mobile phones serve as the primary device to access the Internet.

This deal announcement comes only 5 days after Rakuten Valuation Metrics announced its acquisition of Viber Media for $900 million, a Trailing Revenue Multiple: NA value of nearly 600 times trailing revenues. Evan Spiegel’s Snapchat has notoriously rejected multi-billion offers from Multiple on $ Invested: 2,000x the likes of Facebook and Google as it pursues a potential Deal Value Per Employee: $320M path toward IPO. Korean search giant Naver owns Line and Asia’s largest internet company Tencent owns WeChat, leaving KakaoTalk as a potential standalone messaging acquisition target following the recent consolidation. Investors The deal value of $16 billion consists of $4 billion in cash and Sequoia Capital approximately $12 billion worth of Facebook shares. Under the terms of the deal, WhatsApp founders and employees receive an additional $3 billion in restricted stock units which will vest over four years upon closing of the deal.

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

The deal consists of Verizon Wireless’ sale of its 700 MHz A- block spectrum to T-Mobile. The low-band A-block spectrum covers partial areas of New York, Dallas, Houston, Deal Summary Philadelphia, Atlanta, Washington D.C. and Detroit. Date: 1/6/2014 This deal creates a huge potential for T-Mobile to upgrade its

Transaction Value: $3.3B network and data services in the locations listed above. The % Sought: 100% spectrum in particular is especially valuable for T-Mobile due Consideration: Cash, Assets to its ability to pass through walls, which is a critical component within urban areas.

Under the terms of the deal, T-Mobile will pay $2.4 billion in cash and offer Advanced Wireless Service (AWS) and Valuation Metrics Personal Communications Service (PCS) spectrum licenses Trailing Revenue Multiple: NA worth around $950 million, totaling to $3.3 billion. Trailing EBITDA Multiple: NA Multiple on $ Invested: NA

Investors

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

Motorola Mobility provides a broad range of mobile telephones, smartphones, tablet PCs, wireless accessories, software, and video and data delivery services for Deal Summary businesses and consumers. Motorola has gone through Date: 1/29/2014 drastic cost-cutting measures and shifted focus to creating a Transaction Value: $2.9B few flagship phones instead of dozens of phones lacking differentiation. The Moto X delivers innovative features while % Sought: 100% the Moto G set a new standard of price and performance in Consideration: Cash, Equity, Promissory Note the mid range segment.

Google successfully completes its exit from the device market while retaining valuable patents picked up from its Motorola acquisition. The question of competing with its Valuation Metrics hardware partners has been eliminated while its brief foray Trailing Revenue Multiple: 0.6x into hardware helped to check Samsung, where questions Trailing EBITDA Multiple: NA around shifting focus to its Tizen OS as it continued to downplay Android was becoming a concern. Multiple on $ Invested: 0.2x Lenovo broadens its market presence beyond China through the Motorola brand and establishes itself as a major player. Investors Google

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

Iliad has agreed to purchase Bouygues Telecom’s mobile network, which provides wireless voice and data communications services to consumers in France and Deal Summary includes a portfolio of 2G, 3G and 4G frequencies. This deal Date: 3/10/2014 comes ahead of the proposed wireless merger of Bouygues Transaction Value: $2.5B with Vivendi’s SFR as a preemptive measure for antitrust concerns if the bid is accepted. % Sought: 100% Consideration: Cash Iliad provides broadband Internet and telephone access to businesses and residential customers in France. If Bouygues’ bid for Vivendi’s SFR is successful, Iliad would secure the mobile networks from Bouygues to help bolster its Free Mobile services in France. Valuation Metrics Trailing Revenue Multiple: NA Many analysts familiar with the deal say the Bouygues’ bid for SFR is a difficult reach since they would have a combined

Trailing EBITDA Multiple: NA market share of 50%, and anti-trust regulators will definitely Multiple on $ Invested: NA have a tough time approving the deal.

Investors

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

Oculus VR is the big name in the nascent market for immersive virtual reality (VR) technology and is well recognized for its Rift headset. The headset is designed Deal Summary specifically for video games and provides a wide field of Date: 3/25/2014 view, high resolution display and ultra-low latency 360° head Transaction Value: $2.3B* tracking. Oculus has successfully received over 75,000 orders from developers for its Development Kits and a consumer % Sought: 100% release is highly anticipated within the gaming space. Consideration: Cash, Equity, Earnout CEO Mark Zuckerberg noted in his Facebook post announcing the acquisition that Oculus will continue (*) Transaction Value includes a $300M earnout operating independently within Facebook to focus on gaming initially, but will eventually integrate its technology Valuation Metrics into its social networking platform to expand into a variety of Trailing Revenue Multiple: NA other arenas. Zuckerberg further noted, “After games, we’re Multiple on Total $ Invested: 24.6x* going to make Oculus a platform for many other experiences. Imagine enjoying a court side seat at a game, studying in a classroom of students and teachers.”

(*) Transaction Value includes a $300M earnout Social gaming has been a key factor in Facebook’s growth, and with its resources Oculus has demonstrated the Investors potential to revolutionize gaming and other VR applications. Andreessen Horowitz; The Founders Fund; Formation8 The deal value of $2.3 billion is comprised of $400 million in Partners; Matrix Partners; Spark Capital cash, 23.1 million shares of Facebook common stock and a $300 million earnout based on achievement of certain performance milestones.

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

AirWatch provides mobile device management (MDM) software and mobile application, content and security management software for various mobile operating systems Deal Summary for businesses. Its offerings allow IT departments to configure Date: 1/22/2014 employees’ mobile operating systems, sync devices with a Transaction Value: $1.5B central server and monitor which applications have been downloaded on each mobile device. % Sought: 100% Consideration: Cash, Common Equity, Installment VMware’s lack of a mobile offering ultimately led executives Payments to acquire AirWatch in order to equalize the playing field with market leaders such as IBM, Citrix and SAP who bolstered their positions in the MDM market with the acquisitions of Fiberlink, Zenprise and Hybris, respectively. Valuation Metrics According to Gartner, over 2 billion mobile devices are Trailing Revenue Multiple: 15.4x expected to ship in 2014 alone, and a large percentage of Trailing EBITDA Multiple: NA those devices will be utilized in the workplace. Having acquired Nicira, a network virtualization software provider for Multiple on $ Invested: 6.8x $1.26 billion 18 months ago, VMware is augmenting its

Deal Value Per Employee: $962K organic growth through acquisitions in order to maintain its industry prominence.

Investors AirWatch raised a total of $225 million in a Series A round last Accel Partners; Insight Venture Partners year from Accel Partners and Insight Venture Partners. At a deal value of $1.54 billion, equating to 15.4 times trailing revenues and 6.8 times total dollar amount invested, the transaction provided a substantial return for its investors.

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

AutoNavi provides digital map data and location-based software for automakers, mobile device manufacturers, government agencies and consumers in China. AutoNavi Deal Summary holds one of a limited number of mapping licenses issued by Date: 2/10/2014 the Chinese government, allowing the company to Transaction Value: $1.2B leverage those licenses over other mapping companies within China and abroad. Alibaba already had a 28% stake % Sought: 100% in the company after investing $294 million in May of 2013. Consideration: Cash Alibaba is currently China’s largest ecommerce company and is planning to go public in the near future. Its acquisition of AutoNavi puts the company into a competitive position against Baidu and Tencent within the mapping space. This Valuation Metrics purchase will enable Alibaba customers to find stores they wish to go to on the map and make payments through LTM Revenue Multiple: 8.2x Alibaba’s services. LTM P/E Multiple: NM Alibaba offered to pay $21 per AutoNavi’s ADR, which marks Premium versus: a 27% premium to the previous day’s closing price. The $1.2 1 day prior: 27.0% billion all-cash deal is Alibaba’s biggest acquisition to date 1 week prior: 39.0% and exhibits a bold statement ahead of its IPO. 1 month prior: 31.6%

Note: LTM and Premiums of last quarter prior to transaction announcement date.

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

Viber Media provides a mobile and desktop messaging application for iOS, Android, Blackberry and Windows users to send and receive free text messages, VoIP calls and send Deal Summary photos and videos to other Viber users. Founded in 2010, Date: 2/14/2014 Viber has gained popularity among Asian countries growing Transaction Value: $900M their user base to 300 million users and 100 million MAUs. % Sought: 100% Rakuten operates as an online retailer of various goods for Consideration: Cash consumers in Japan. Although Rakuten operates as an e- commerce company at its core, it has built a rich portfolio of varied businesses ranging from a baseball team in Japan to an e-reader business. Its acquisition of Viber allows them to compete in a fierce market of mobile messaging including Valuation Metrics Facebook’s Messenger and WhatsApp, Naver’s Line, Trailing Revenue Multiple: 593.7x Tencent’s WeChat and KakaoTalk to name a few. Viber’s Trailing EBITDA Multiple: NA 300 million users will now be added to Rakuten’s user base and if they succeed at cross-selling their products to the new Multiple on $ Invested: NA users they will be able to tap into emerging markets and generate significant incremental revenue.

At valuation of 594 times trailing revenue or $3 per customer, Investors the $900 million all-cash deal seems like an over payment, but with its potential to generate massive cash flow, this purchase may be justified.

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

NaturalMotion designs, develops and publishes mobile social games featuring 3D character animation. Their hit-games Clumsy Ninja and CSR Racing were both recognized by Deal Summary Apple and were invited to provide a demo on-stage at Date: 1/30/2014 WWDC and iPhone 5 keynotes. Torsten Reil, the founder of Transaction Value: $527M* the company, used his biology background to design software to animate 3D movement as realistically as % Sought: 100% possible. Consideration: Cash, Equity, Earnout Zynga has been struggling in the recent years as fast- following and creating games on the Facebook gaming (*) Transaction Value includes a $50M earnout platform was not enough. Its acquisition of NaturalMotion will enhance its portfolio of reputable games and provide a 260 Valuation Metrics person team whom are all dedicated to the high quality of Trailing Revenue Multiple: 8.5x* the games they release. Trailing EBITDA Multiple: NA The purchase price of $527 million includes a $50 million Multiple on $ Invested: 5.0x* earnout which will be distributed upon reaching certain milestones. It reflects a 8.5 times trailing revenue valuation (*) Transaction Value includes a $50M earnout and 5 times total dollars invested by seed funders including Balderton Capital and Benchmark Capital. Investors Balderton Capital; Benchmark Capital

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M&A Transaction Spotlight

Acquiror Target Deal Rationale/Commentary

LiveTV provides In-flight satellite television, radio content and wireless Internet access for passenger airlines globally. JetBlue Airways acquired LiveTV in September of 2002 for Deal Summary $80.2 million. Although having experienced some growth in Date: 3/14/2014 the early years, the business unit’s expansion has been Transaction Value: $400M limited as JetBlue sought to maintain its competitive advantage in inflight entertainment and was essentially % Sought: 100% subsidizing these costs for direct competitors. Consideration: Cash Thales Group designs and manufactures a broad range of aerospace electronic systems, spacecraft, military systems, security software, and transportation control systems for businesses and government agencies worldwide. The Valuation Metrics acquisition of LiveTV will provide significant upside for Thales Trailing Revenue Multiple: 5.6x in live television and broadband access for aviation as it Trailing EBITDA Multiple: NA seeks a dominate position in the high-growth in-flight entertainment market. Multiple on $ Invested: 5.0x Deal Value Per Employee: $890K With 2013 revenue at $72 million and a multiple of 5.6x, the $400 million sale successfully concludes a three year effort to divest the business unit. Although growth had been relatively Investors flat in recent years, LiveTV was forecast to reach $150 million JetBlue Airways in revenue in 2014, which equates to 2.7 times projected revenue. The acquisition was a notable move by JetBlue Airways, netting the airline a substantial profit and achieving around a five-fold return.

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Capstone Partners Investment Banking Advisors

Public Company Observations and Trading & Operating MetricsRecommendations

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Trading & Operating Metrics

($ in millions, except per share data) $/Share Market Enterprise % Change Ent. Value/Rev. Ent. Value/EBITDA Price/EPS NTM / LTM Growth LTM Margin Company Name 3/31/14 Cap Value Cash Debt LTM LQ LTM NTM LTM NTM LTM NTM Revenue EBITDA EPS Gross EBITDA Net

Mobile 135 Mean 29,391 31,104 4,993 6,707 38.0 % 2.4 % 5.2 x 3.9 x 17.7 x 14.3 x 28.7 x 22.5 x 18.3% 38.2% 33.0% 53.0 % 20.0 % 19.0 % Mobile 135 Median 2,499 2,352 278 106 26.3 % 1.8 % 3.4 x 2.7 x 12.4 x 10.3 x 20.0 x 17.1 x 11.1% 19.4% 12.0% 52.5 % 22.4 % 9.7 %

Apps Stores & Content Aggregation Amazon 336.37 154,481 148,170 12,447 6,136 26.2 % (15.7)% 2.0 x 1.6 x NA 21.5 x NA NA 20.7% 69.0% NA 27.2 % 5.5 % 0.4 % Apple 536.74 479,069 455,264 40,766 16,961 21.3 % (4.3)% 2.6 x 2.5 x 8.1 x 7.7 x 13.3 x 12.4 x 5.2% 6.1% 7.1% 37.4 % 32.1 % 21.3 % Bew inner Comm 3.74 956 929 27 0 158.1 % (0.6)% 20.0 x 15.5 x 89.3 x 37.7 x 92.3 x 56.3 x 28.6% 136.5% 63.9% 46.8 % 22.4 % 19.8 % Google 557.26 375,194 324,279 57,534 6,619 40.3 % (0.6)% 5.4 x 4.8 x 16.2 x 12.5 x 25.4 x 21.0 x 12.3% 29.9% 20.7% 56.8 % 33.4 % 24.9 % Ku6 Media 2.10 99 81 22 3 105.9 % (25.6)% 4.7 x NA NA NA 13.1 x NA NA NA NA (7.8)% (136.9)% 42.9 % Mandalay Digital 3.95 144 139 5 0 (15.1)% 50.8 % 6.7 x 3.6 x NA NA NA NA 86.7% 99.8% 73.8% 36.1 % (57.0)% (101.3)% Mean 168,324 154,810 18,467 4,953 56.1 % 0.7 % 6.9 x 5.6 x 37.9 x 19.8 x 36.0 x 29.9 x 30.7% 68.2% 41.4% 32.8 % (16.7)% 1.3 % Median 77,718 74,549 6,237 3,070 33.3 % (2.4)% 5.0 x 3.6 x 16.2 x 17.0 x 19.4 x 21.0 x 20.7% 69.0% 42.3% 36.8 % 13.9 % 20.5 %

Carrier Back Office Amdocs 46.46 7,416 6,204 1,212 0 28.2 % 12.7 % 1.8 x 1.7 x 9.0 x 8.4 x 15.7 x 14.5 x 6.6% 7.5% 9.0% 35.3 % 20.4 % 14.2 % Comverse 34.58 769 525 244 0 23.3 % (10.9)% 0.8 x 0.8 x 6.5 x 6.0 x 16.8 x 13.7 x (6.2)% 8.7% 23.2% 37.9 % 12.1 % 6.8 % Convergys 21.91 2,223 1,620 664 61 28.7 % 4.1 % 0.8 x 0.6 x 6.6 x 4.6 x 20.5 x 15.0 x 41.4% 44.1% 36.8% 34.9 % 12.0 % 5.7 % CSG Systems 26.04 891 945 211 265 22.9 % (11.4)% 1.3 x 1.2 x 5.9 x 6.0 x 11.8 x 12.3 x 1.8% (1.1)% (3.5)% 49.1 % 21.4 % 9.7 % NeuStar 32.51 1,989 2,387 223 621 (30.1)% (34.8)% 2.6 x 2.5 x 5.8 x 5.2 x 9.2 x 8.6 x 6.1% 10.3% 6.5% 76.4 % 45.7 % 25.9 % Synchronoss 34.29 1,394 1,331 73 9 10.5 % 10.4 % 3.8 x 3.2 x 14.4 x 8.9 x 25.6 x 21.5 x 19.1% 62.3% 18.9% 58.1 % 26.5 % 15.4 % Teleperformance 57.99 3,313 3,187 233 106 36.1 % (4.9)% 1.0 x 0.9 x 7.7 x 6.6 x 19.4 x 14.6 x 4.9% 17.7% 33.1% 29.9 % 12.3 % 5.1 % TeleTech 24.51 1,225 1,169 158 102 15.6 % 2.4 % 1.0 x 0.9 x 7.8 x 7.4 x 15.8 x 15.7 x 5.0% 6.1% 0.5% 29.0 % 12.5 % 6.8 % Mean 2,402 2,171 377 146 16.9 % (4.1)% 1.6 x 1.5 x 8.0 x 6.6 x 16.9 x 14.5 x 9.8% 19.4% 15.5% 43.8 % 20.4 % 11.2 % Median 1,692 1,475 228 82 23.1 % (1.3)% 1.1 x 1.1 x 7.2 x 6.3 x 16.3 x 14.5 x 5.5% 9.5% 14.0% 36.6 % 16.5 % 8.2 %

Games / Virtual Goods Ateam 47.98 462 440 23 0 70.1 % (32.9)% 3.9 x 3.2 x 23.9 x 12.6 x NA NA 23.4% 88.9% NA 87.3 % 16.5 % 9.5 % Boyaa 1.25 786 572 214 0 NA 21.3 % 5.1 x 3.9 x 21.0 x 11.5 x 29.0 x 21.1 x 30.4% 82.2% 37.7% 61.1 % 24.2 % 22.8 % Changyou.com 29.52 1,560 1,419 551 410 2.2 % (7.9)% 1.9 x 1.8 x 4.0 x 9.5 x 5.8 x NA 4.1% (57.5)% (105.3)% 83.4 % 47.6 % 36.5 % CyberAgent 38.37 2,394 2,104 291 0 103.7 % (5.7)% 1.3 x 1.1 x 12.5 x 7.3 x 24.9 x NA 19.5% 71.8% NA 35.1 % 10.5 % 6.0 % DeNA 18.11 2,345 1,901 549 106 (33.2)% (13.9)% 1.0 x 1.2 x 2.9 x 3.5 x 6.1 x NA (12.9)% (18.4)% NA 68.6 % 35.8 % 21.1 % DWA NGO 33.51 1,365 1,281 88 5 66.6 % 29.7 % 3.6 x 3.3 x 26.3 x 22.2 x 47.7 x NA 10.3% 18.3% NA 43.8 % 13.9 % 8.2 % Giant Interactive 11.57 2,783 2,254 631 102 78.0 % 2.9 % 5.8 x 5.2 x 8.8 x 8.0 x 11.5 x 11.2 x 11.6% 10.4% 2.7% 91.9 % 65.7 % 64.1 % IGG 0.91 1,231 1,096 135 0 NA 36.4 % 12.5 x 4.6 x 47.5 x 10.2 x NA 12.9 x 169.9% 365.8% 1,292.9% 74.7 % 26.2 % (6.6)% King Digital 18.19 5,729 5,537 192 0 NA NA 2.9 x 2.3 x 7.7 x 5.6 x 8.3 x 8.0 x 29.5% 37.5% 3.9% 69.0 % 38.2 % 37.6 % Mail.ru 35.45 7,395 6,440 955 0 28.0 % (20.5)% 7.9 x 6.7 x 18.2 x 12.5 x 9.1 x 20.0 x 16.6% 45.8% (54.5)% 59.0 % 43.2 % 100.1 % Ourpalm 5.18 3,650 3,510 139 0 247.8 % 9.3 % 55.9 x 16.9 x 145.0 x 23.3 x 171.3 x 45.8 x 231.4% 521.3% 274.0% 54.4 % 38.5 % 32.3 % Sohu.com 65.09 2,499 1,537 1,372 410 31.2 % (10.8)% 1.1 x 0.9 x 4.9 x NA 35.6 x NA 22.1% (89.0)% (178.4)% 65.7 % 22.4 % 5.0 % Mean 2,683 2,341 428 86 66.0 % 0.7 % 8.6 x 4.3 x 26.9 x 11.5 x 34.9 x 19.8 x 46.3% 89.8% 159.1% 66.2 % 31.9 % 28.0 % Median 2,369 1,719 252 0 66.6 % (5.7)% 3.8 x 3.2 x 15.3 x 10.2 x 18.2 x 16.4 x 20.8% 41.7% 3.3% 67.2 % 31.0 % 21.9 %

*Sorted alphabetically within market segment

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Trading & Operating Metrics

M-Commerce Enablement Amdocs 46.46 7,416 6,204 1,212 0 28.2 % 12.7 % 1.8 x 1.7 x 9.0 x 8.4 x 15.7 x 14.5 x 6.6% 7.5% 9.0% 35.3 % 20.4 % 14.2 % Bango 2.33 106 102 4 0 (29.6)% 1.7 % 3.3 x NA NA NA NA NA NA NA NA 12.9 % (3.5)% (2.7)% China Binary 0.35 167 156 11 0 NA 17.9 % 15.4 x NA 37.2 x NA 1.0 x NA NA NA NA 68.5 % 41.4 % 1226.0 % Danal 11.01 213 253 73 113 (1.2)% 23.5 % 2.3 x 3.5 x NA NA NA NA (34.5)% NA NA 99.9 % 5.8 % 2.6 % eBay 55.24 69,991 65,089 9,025 4,123 1.9 % 0.7 % 4.1 x 3.6 x 12.8 x 10.9 x 20.4 x 18.5 x 13.8% 17.2% 10.3% 68.6 % 31.6 % 22.2 % Econtext 0.52 272 77 195 0 NA (31.7)% 0.5 x 0.5 x 2.7 x 3.0 x 23.9 x NA 8.6% (11.2)% NA 25.6 % 20.3 % 7.8 % eServGlobal 0.87 220 217 6 3 93.7 % 22.7 % 7.4 x 6.2 x NA 61.1 x 13.5 x NA 18.6% 240.2% NA 62.0 % (8.6)% 53.0 % Monitise 1.18 2,181 2,071 111 2 110.6 % 6.6 % 13.7 x 9.8 x NA NA NA NA 39.4% 19.4% 41.2% 75.4 % (35.0)% (49.9)% Qiw i 34.65 1,806 1,408 404 6 NA (38.1)% 4.0 x 6.6 x 17.2 x 13.3 x 30.2 x 23.1 x (39.8)% 28.7% 30.7% 45.9 % 23.1 % 17.0 % RetailMeNot 32.00 1,714 1,590 166 41 NA 11.1 % 7.6 x 5.9 x 22.4 x 16.1 x 22.5 x 29.6 x 28.9% 39.7% (23.9)% 93.8 % 33.7 % 17.4 % Seamless Dist. 4.92 206 160 47 0 37.9 % (35.8)% 6.4 x 4.5 x NA NA NA NA 39.9% (102.4)% 51.7% (20.4)% (8.3)% (48.7)% Mean 7,663 7,030 1,023 390 34.5 % (0.8)% 6.0 x 4.7 x 16.9 x 18.8 x 18.2 x 21.4 x 9.0% 29.9% 19.8% 51.6 % 11.0 % 114.4 % Median 272 253 111 2 28.2 % 6.6 % 4.1 x 4.5 x 15.0 x 12.1 x 20.4 x 20.8 x 13.8% 18.3% 20.5% 62.0 % 20.3 % 14.2 %

Messaging & VoIP Comverse 34.58 769 525 244 0 23.3 % (10.9)% 0.8 x 0.8 x 6.5 x 6.0 x 16.8 x 13.7 x (6.2)% 8.7% 23.2% 37.9 % 12.1 % 6.8 % Mail.ru 35.45 7,395 6,440 955 0 28.0 % (20.5)% 7.9 x 6.7 x 18.2 x 12.5 x 9.1 x 20.0 x 16.6% 45.8% (54.5)% 59.0 % 43.2 % 100.1 % Mavenir 17.90 419 404 39 23 NA 60.4 % 4.0 x 3.3 x NA NA NA NA 21.8% NA NA 55.4 % (3.7)% (2.8)% Myriad Group 1.61 147 145 10 8 (36.4)% 5.2 % 2.6 x NA NA NA NA NA NA NA NA 34.1 % (4.9)% (72.7)% SINA 60.41 4,033 2,964 1,868 800 24.3 % (28.3)% 4.5 x 3.5 x NA 22.8 x 53.9 x 38.7 x 26.3% 173.5% 39.5% 59.2 % 7.1 % 11.3 % Tencent 69.55 128,305 124,209 6,583 2,486 118.8 % 9.0 % 12.4 x 9.7 x 38.4 x 27.3 x 46.6 x 37.0 x 28.2% 40.7% 26.1% 54.6 % 32.4 % 27.9 % Mean 23,511 22,448 1,616 553 31.6 % 2.5 % 5.4 x 4.8 x 21.0 x 17.1 x 31.6 x 27.3 x 17.3% 67.2% 8.6% 50.0 % 14.4 % 11.8 % Median 2,401 1,744 599 16 24.3 % (2.8)% 4.2 x 3.5 x 18.2 x 17.7 x 31.7 x 28.5 x 21.8% 43.2% 24.6% 55.0 % 9.6 % 9.1 %

Mobile / Local Marketing Amdocs 46.46 7,416 6,204 1,212 0 28.2 % 12.7 % 1.8 x 1.7 x 9.0 x 8.4 x 15.7 x 14.5 x 6.6% 7.5% 9.0% 35.3 % 20.4 % 14.2 % comScore 32.79 1,133 1,089 68 24 95.4 % 14.6 % 3.8 x 3.4 x 21.9 x 17.0 x 29.3 x 27.5 x 12.9% 28.5% 6.5% 68.6 % 17.4 % 13.4 % Conversant 28.15 1,896 1,955 81 140 (4.8)% 20.5 % 3.4 x 3.2 x 8.2 x 8.5 x 16.8 x 15.0 x 7.6% (3.6)% 11.6% 68.0 % 41.5 % 21.7 % CyberAgent 38.37 2,394 2,104 291 0 103.7 % (5.7)% 1.3 x 1.1 x 12.5 x 7.3 x 24.9 x NA 19.5% 71.8% NA 35.1 % 10.5 % 6.0 % Marchex 10.51 437 406 31 0 149.6 % 21.5 % 2.7 x 2.3 x 27.9 x 26.4 x NA NA 15.2% 5.8% NA 39.8 % 9.5 % 3.9 % Millennial Media 6.92 738 640 99 2 9.0 % (4.8)% 2.5 x 1.5 x NA NA NA NA 60.9% NA NA 40.3 % 3.4 % (1.0)% Rocket Fuel 42.88 1,503 1,417 114 27 NA (30.3)% 5.9 x 3.3 x NA NA NA NA 80.0% NA NA 47.8 % (4.3)% (3.3)% SINA 60.41 4,033 2,964 1,868 800 24.3 % (28.3)% 4.5 x 3.5 x NA 22.8 x 53.9 x 38.7 x 26.3% 173.5% 39.5% 59.2 % 7.1 % 11.3 % Mean 2,444 2,097 470 124 57.9 % 0.0 % 3.2 x 2.5 x 15.9 x 15.1 x 28.1 x 23.9 x 28.6% 47.3% 16.6% 49.3 % 13.2 % 8.3 % Median 1,700 1,686 107 13 28.2 % 3.9 % 3.0 x 2.7 x 12.5 x 12.8 x 24.9 x 21.3 x 17.4% 18.0% 10.3% 44.1 % 10.0 % 8.7 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 48 Investment Banking Advisors 48

Trading & Operating Metrics

Mobile Devices Apple 536.74 479,069 455,264 40,766 16,961 21.3 % (4.3)% 2.6 x 2.5 x 8.1 x 7.7 x 13.3 x 12.4 x 5.2% 6.1% 7.1% 37.4 % 32.1 % 21.3 % BDStar Navigation 4.25 997 1,010 44 57 (11.7)% (25.6)% 7.9 x 6.4 x 60.9 x 47.5 x 106.7 x 77.7 x 22.6% 28.2% 37.3% 31.1 % 12.9 % 5.6 % Blackberry 8.11 4,209 3,307 2,529 1,627 (45.3)% 9.1 % 0.5 x 0.9 x 3.5 x NA NA NA (44.5)% (83.4)% 21.7% 0.9 % 13.9 % (10.4)% Gar min 55.26 10,784 9,455 1,329 0 67.2 % 19.6 % 3.6 x 3.6 x 14.6 x 14.6 x 21.2 x 21.0 x 0.4% (0.6)% 0.9% 53.5 % 24.7 % 19.5 % Hi-Target Nav 4.75 958 881 77 0 113.7 % 7.4 % 9.9 x 6.9 x 45.4 x NA 54.4 x NA 44.5% NA NA 50.6 % 21.8 % 19.6 % HTC 5.03 4,139 2,336 1,803 0 (38.6)% 6.5 % 0.3 x 0.4 x NA NA NA NA (6.1)% NA NA 20.8 % 0.4 % 0.4 % LG 61.08 9,950 16,160 2,514 8,725 (16.2)% (5.3)% 0.3 x 0.3 x 6.5 x 5.1 x 11.9 x 15.0 x 3.4% NA NA 23.1 % 4.5 % 1.5 % Samsung 1,264.04 165,446 124,434 51,584 10,572 (7.9)% (2.7)% 0.6 x 0.6 x 2.7 x 2.4 x 7.0 x 6.9 x 3.2% 15.9% 0.6% 39.8 % 21.0 % 11.0 % Trimble Navigation 38.87 10,135 10,746 147 758 29.7 % 12.0 % 4.7 x 4.2 x 24.1 x 20.1 x 24.6 x 22.3 x 11.6% 19.6% 10.1% 56.3 % 19.5 % 18.0 % Mean 76,188 69,288 11,199 4,300 12.5 % 1.9 % 3.4 x 2.8 x 20.7 x 16.2 x 34.2 x 25.9 x 4.5% (2.4)% 12.9% 34.8 % 16.8 % 9.6 % Median 9,950 9,455 1,803 758 (7.9)% 6.5 % 2.6 x 2.5 x 11.4 x 11.2 x 21.2 x 18.0 x 3.4% 11.0% 8.6% 37.4 % 19.5 % 11.0 %

Mobile OS & Utility Software Google 557.26 375,194 324,279 57,534 6,619 40.3 % (0.6)% 5.4 x 4.8 x 16.2 x 12.5 x 25.4 x 21.0 x 12.3% 29.9% 20.7% 56.8 % 33.4 % 24.9 % Infraw are 8.19 152 101 68 17 (20.8)% (21.1)% 1.9 x 1.3 x 8.5 x NA 17.9 x 4.4 x 53.3% NA 303.8% 99.3 % 22.6 % 23.0 % Microsoft 40.99 340,247 280,846 83,135 23,734 43.3 % 9.6 % 3.4 x 3.2 x 8.9 x 8.7 x 14.7 x 14.8 x 6.2% 3.0% (0.6)% 71.5 % 37.7 % 28.1 % Monotype Imaging 30.14 1,179 1,101 78 0 26.9 % (5.4)% 6.6 x 6.0 x 15.9 x 14.3 x 27.7 x 26.2 x 9.9% 10.9% 5.6% 85.7 % 41.6 % 25.7 % Myriad Group 1.61 147 145 10 8 (36.4)% 5.2 % 2.6 x NA NA NA NA NA NA NA NA 34.1 % (4.9)% (72.7)% NQ Mobile 17.61 940 790 149 0 95.4 % 19.8 % 5.0 x 2.8 x 18.8 x 8.8 x 17.7 x 12.9 x 78.1% 112.7% 37.1% 64.8 % 26.5 % 36.4 % Nuance Comm 17.17 5,446 7,032 775 2,361 (14.9)% 13.0 % 3.8 x 3.4 x 9.7 x 13.2 x 10.0 x 15.0 x 12.0% (26.5)% (32.9)% 60.9 % 38.9 % 28.8 % Opera 13.07 1,733 1,630 163 60 105.5 % (4.3)% 5.4 x 4.0 x 23.6 x 13.7 x 27.7 x 25.7 x 36.9% 71.8% 7.7% 44.4 % 23.0 % 19.8 % Sungy Mobile 20.91 699 571 128 0 NA 1.9 % 10.5 x 7.2 x 34.6 x 25.4 x NA 27.6 x 45.3% 35.9% NA 71.4 % 30.4 % 3.6 % Mean 80,637 68,499 15,782 3,644 29.9 % 2.0 % 5.0 x 4.1 x 17.0 x 13.8 x 20.2 x 18.5 x 31.8% 33.9% 48.8% 65.4 % 27.7 % 13.1 % Median 1,179 1,101 149 17 33.6 % 1.9 % 5.0 x 3.7 x 16.1 x 13.2 x 17.9 x 18.0 x 24.6% 29.9% 7.7% 64.8 % 30.4 % 24.9 %

Mobility & Monitoring BSM 2.18 101 98 8 6 77.0 % (26.4)% 4.7 x 3.9 x 31.1 x 17.1 x 58.6 x 23.2 x 20.7% 81.9% 152.2% 60.6 % 15.1 % 6.2 % ClickSoftw are 10.12 322 265 57 0 25.9 % 34.9 % 2.6 x 2.3 x 29.7 x NA NA NA 13.1% (51.1)% NA 57.1 % 8.6 % (2.5)% Fleetmatics 33.45 1,242 1,129 137 24 37.9 % (22.7)% 6.4 x 4.9 x 23.9 x 18.3 x 38.9 x 40.3 x 29.3% 30.5% (3.5)% 75.3 % 26.6 % 18.0 % Ituran 24.84 521 479 42 0 58.5 % 13.8 % 2.8 x 2.6 x 8.8 x NA 22.0 x 17.1 x 6.4% NA 28.8% 52.5 % 31.9 % 13.9 % Mix Telematics 0.44 343 273 76 6 9.1 % (8.4)% 2.3 x 2.0 x 11.3 x 8.8 x 20.6 x 25.6 x 18.2% 28.0% (19.6)% 66.2 % 20.6 % 13.3 % Mobile Create 32.54 188 187 7 6 115.9 % 23.5 % 5.4 x NA 20.5 x NA 27.2 x NA NA NA NA 37.1 % 26.1 % 18.1 % Numerex 10.93 207 183 26 2 (14.5)% (15.6)% 2.3 x 2.0 x 25.8 x 16.0 x NA 30.8 x 19.3% 60.6% NA 41.3 % 9.1 % 4.0 % ORBCOMM 6.85 378 356 68 47 31.5 % 8.0 % 4.8 x 3.6 x 22.9 x 17.0 x 62.1 x NA 31.9% 34.5% (18.4)% 48.9 % 21.0 % 7.2 % Silver Spring 17.38 830 687 146 3 0.3 % (17.2)% 2.1 x 1.9 x NA NA NA NA 12.1% 145.0% 114.1% 35.3 % (10.8)% (8.2)% Tianze Information 2.30 368 269 100 0 62.8 % 7.6 % 12.2 x NA NA NA 178.6 x NA NA NA NA 59.2 % (7.2)% 9.4 % Mean 450 393 67 9 40.4 % (0.2)% 4.6 x 2.9 x 21.7 x 15.5 x 58.3 x 27.4 x 18.9% 47.0% 42.3% 53.3 % 14.1 % 7.9 % Median 355 271 63 4 34.7 % (0.4)% 3.7 x 2.5 x 23.4 x 17.0 x 38.9 x 25.6 x 18.7% 34.5% 12.7% 54.8 % 17.8 % 8.3 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 49 Investment Banking Advisors 49

Trading & Operating Metrics

Portals & Social Networks Daum Comm 73.60 974 715 259 1 (10.7)% (7.5)% 1.4 x 1.3 x 6.2 x 5.9 x 12.8 x 14.2 x 9.3% 6.1% (9.8)% 100.0 % 22.9 % 15.4 % Facebook 60.24 154,449 143,476 11,449 476 135.5 % 10.2 % 18.2 x 12.6 x 41.1 x 21.0 x 69.2 x 47.5 x 44.6% 96.3% 45.9% 77.7 % 44.3 % 27.8 % Gree 11.07 2,606 2,232 527 152 (10.3)% 12.1 % 1.6 x 1.8 x 5.2 x 5.5 x 18.0 x NA (10.6)% (5.6)% NA 79.6 % 31.6 % 10.8 % Mail.ru 35.45 7,395 6,440 955 0 28.0 % (20.5)% 7.9 x 6.7 x 18.2 x 12.5 x 9.1 x 20.0 x 16.6% 45.8% (54.5)% 59.0 % 43.2 % 100.1 % NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Mono Technology 0.25 356 288 70 1 NA 1.5 % 6.3 x 5.3 x 16.2 x 8.4 x 20.9 x 16.0 x 18.0% 93.4% 30.6% 62.2 % 38.8 % 34.5 % SINA 60.41 4,033 2,964 1,868 800 24.3 % (28.3)% 4.5 x 3.5 x NA 22.8 x 53.9 x 38.7 x 26.3% 173.5% 39.5% 59.2 % 7.1 % 11.3 % Tencent 69.55 128,305 124,209 6,583 2,486 118.8 % 9.0 % 12.4 x 9.7 x 38.4 x 27.3 x 46.6 x 37.0 x 28.2% 40.7% 26.1% 54.6 % 32.4 % 27.9 % Tw itter 46.67 27,460 25,426 2,234 200 NA (26.7)% 38.2 x 20.5 x NA 139.7 x NA NA 86.5% 134.2% 102.1% 59.9 % (80.0)% (18.4)% Mean 40,697 38,219 2,993 515 47.6 % (6.3)% 11.3 x 7.7 x 20.9 x 30.4 x 32.9 x 28.9 x 27.4% 73.1% 25.7% 69.0 % 17.5 % 26.2 % Median 5,714 4,702 1,411 176 26.2 % (3.0)% 7.1 x 6.0 x 17.2 x 16.7 x 20.9 x 28.5 x 22.2% 69.6% 30.6% 61.0 % 32.0 % 21.6 %

Search, Referral & Navigation AutoNavi 20.04 1,387 907 480 0 86.9 % 40.6 % 6.4 x 8.0 x NA NA NA NA (20.4)% 27.2% (202.4)% 66.2 % (22.3)% (9.4)% Baidu 152.27 53,350 49,920 6,347 2,917 73.6 % (14.4)% 9.5 x 6.5 x 23.5 x 20.8 x 29.8 x 28.2 x 44.7% 12.7% 5.5% 71.4 % 40.3 % 33.9 % Daum Comm 73.60 974 715 259 1 (10.7)% (7.5)% 1.4 x 1.3 x 6.2 x 5.9 x 12.8 x 14.2 x 9.3% 6.1% (9.8)% 100.0 % 22.9 % 15.4 % DigitalGlobe 29.01 2,188 3,102 229 1,143 0.3 % (29.5)% 5.1 x 4.8 x 17.2 x 11.2 x NA NA 4.7% 52.7% NA 71.7 % 29.5 % 0.1 % Google 557.26 375,194 324,279 57,534 6,619 40.3 % (0.6)% 5.4 x 4.8 x 16.2 x 12.5 x 25.4 x 21.0 x 12.3% 29.9% 20.7% 56.8 % 33.4 % 24.9 % NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Naver 728.49 21,722 21,129 926 333 100.4 % 6.2 % 9.6 x 7.9 x 34.0 x 24.4 x 54.5 x 42.2 x 21.6% 39.3% 29.2% 100.0 % 28.4 % 23.1 % Mean 75,802 66,675 10,963 1,835 48.5 % (0.8)% 6.2 x 5.6 x 19.4 x 15.0 x 30.6 x 26.4 x 12.0% 28.0% (31.4)% 77.7 % 22.0 % 14.7 % Median 11,955 12,115 703 738 57.0 % (4.0)% 5.9 x 5.7 x 17.2 x 12.5 x 27.6 x 24.6 x 10.8% 28.6% 5.5% 71.6 % 28.9 % 19.2 %

Video, Music & eBooks Amazon 336.37 154,481 148,170 12,447 6,136 26.2 % (15.7)% 2.0 x 1.6 x NA 21.5 x NA NA 20.7% 69.0% NA 27.2 % 5.5 % 0.4 % Apple 536.74 479,069 455,264 40,766 16,961 21.3 % (4.3)% 2.6 x 2.5 x 8.1 x 7.7 x 13.3 x 12.4 x 5.2% 6.1% 7.1% 37.4 % 32.1 % 21.3 % Google 557.26 375,194 324,279 57,534 6,619 40.3 % (0.6)% 5.4 x 4.8 x 16.2 x 12.5 x 25.4 x 21.0 x 12.3% 29.9% 20.7% 56.8 % 33.4 % 24.9 % Netflix 352.03 21,054 20,384 1,200 531 86.0 % (4.4)% 4.7 x 3.8 x NA 36.6 x NA NA 22.8% 128.7% NA 29.5 % 5.6 % 2.9 % Pandora Media 30.32 5,986 5,538 448 0 114.1 % 14.0 % 9.4 x 6.2 x NA NA NA NA 52.8% 222.3% NA 37.0 % (7.1)% (4.2)% Mean 207,157 190,727 22,479 6,049 57.6 % (2.2)% 4.8 x 3.8 x 12.2 x 19.6 x 19.4 x 16.7 x 22.8% 91.2% 13.9% 37.6 % 13.9 % 9.1 % Median 154,481 148,170 12,447 6,136 40.3 % (4.3)% 4.7 x 3.8 x 12.2 x 17.0 x 19.4 x 16.7 x 20.7% 69.0% 13.9% 37.0 % 5.6 % 2.9 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 50 Investment Banking Advisors 50

Trading & Operating Metrics

Wireless Network Equipment Alcatel-Lucent 3.94 10,888 10,622 8,752 8,486 192.8 % (12.1)% 0.5 x 0.5 x 11.1 x 5.9 x NA NA 0.0% NA NA 32.2 % 4.8 % (3.8)% Allw in Telecom 1.23 438 427 20 8 19.0 % 16.1 % 7.6 x 4.9 x NA NA NA NA 55.9% NA NA 26.1 % (15.9)% (14.0)% Aruba Netw orks 18.75 2,002 1,724 278 0 (24.2)% 4.7 % 2.7 x 2.3 x 12.7 x 10.5 x 32.9 x 20.9 x 19.9% 21.1% 57.6% 69.9 % 21.2 % 10.0 % Cisco Systems 22.42 115,466 85,558 47,065 17,157 7.3 % (0.1)% 1.8 x 1.8 x 5.3 x 5.3 x 11.0 x 11.1 x (2.2)% 1.3% (0.9)% 59.4 % 33.5 % 22.9 % EchoStar 47.56 4,306 5,108 1,621 2,422 22.0 % (4.3)% 1.6 x 1.5 x 7.9 x 6.0 x NA NA 6.8% 31.5% NA 32.8 % 19.7 % 0.1 % Ericsson 13.29 42,813 35,471 12,103 4,762 6.9 % 8.9 % 1.0 x 1.0 x 9.1 x 7.6 x 15.4 x 16.5 x 1.0% 19.2% (6.5)% 34.8 % 11.1 % 7.9 % GN Store 24.82 4,062 4,262 36 236 39.5 % 0.9 % 3.4 x 3.1 x 20.7 x 14.3 x 29.0 x 22.7 x 8.6% 45.4% 27.5% 60.6 % 16.4 % 11.5 % Hytera Comm 4.18 1,162 1,191 96 125 56.5 % 6.8 % 4.3 x 3.2 x 34.2 x NA 54.6 x NA 34.9% NA NA 47.0 % 12.5 % 7.7 % Motorola Solutions 64.29 16,335 15,569 3,227 2,461 0.4 % (4.8)% 1.8 x 1.8 x 9.4 x 8.6 x 13.5 x 16.2 x 1.1% 9.7% (16.6)% 49.1 % 19.1 % 14.8 % NEC 3.08 8,001 12,836 1,640 6,475 18.4 % 36.6 % 0.5 x 0.4 x 6.0 x 5.7 x NA NA 3.7% 4.2% NA 29.7 % 7.6 % 0.1 % Nokia 7.43 27,582 24,122 12,668 9,209 129.6 % (7.3)% 1.4 x 1.4 x 10.7 x 11.1 x NA 22.7 x (0.0)% (4.0)% NA 42.1 % 12.9 % 1.0 % Ruckus Wireless 12.16 988 836 152 0 (42.1)% (14.4)% 3.2 x 2.6 x NA 21.5 x 64.0 x 57.1 x 23.2% NA 12.1% 66.5 % 2.1 % 6.7 % Ubiquiti Netw orks 45.45 3,990 3,758 306 74 231.3 % (1.1)% 8.3 x 6.2 x 24.7 x 17.7 x 30.1 x 22.3 x 33.6% 39.6% 35.0% 43.9 % 33.6 % 29.8 % ViaSat 69.04 3,182 3,812 41 672 42.5 % 10.2 % 2.9 x 2.6 x 20.4 x 13.4 x NA NA 9.8% 52.2% NA 26.1 % 14.2 % 1.8 % ZTE 2.03 6,926 8,311 3,992 5,376 12.8 % (5.8)% 0.7 x 0.6 x 18.7 x 8.6 x 36.9 x 15.5 x 19.6% NA NA 27.2 % 3.6 % 1.5 % Mean 16,543 14,240 6,133 3,831 47.5 % 2.3 % 2.8 x 2.3 x 14.7 x 10.5 x 31.9 x 22.8 x 14.4% 22.0% 15.5% 43.1 % 13.1 % 6.5 % Median 4,306 5,108 1,621 2,422 19.0 % (0.1)% 1.8 x 1.8 x 11.1 x 8.6 x 30.1 x 20.9 x 8.6% 20.1% 12.1% 42.1 % 12.9 % 6.7 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 51 Investment Banking Advisors 51

Trading & Operating Metrics

Wireless Network Operators America Movil 0.99 69,006 102,961 3,680 37,634 (6.8)% (14.8)% 1.7 x 1.7 x 5.1 x 5.3 x 12.4 x 10.3 x 1.3% (3.2)% 20.6% 56.5 % 33.4 % 9.7 % AT&T 35.07 182,604 254,473 3,445 75,314 (4.4)% (0.3)% 2.0 x 1.9 x 6.3 x 5.9 x 14.0 x 13.2 x 2.4% 6.6% 6.4% 60.0 % 31.3 % 10.5 % BSkyB 15.22 23,637 26,244 1,922 4,529 13.5 % 8.8 % 2.1 x 2.0 x 9.9 x 9.1 x 16.6 x 14.8 x 5.5% 9.3% 12.0% 39.2 % 21.5 % 11.9 % China Mobile 9.15 185,016 116,491 69,360 835 (13.6)% (11.7)% 1.1 x 1.1 x 2.8 x 3.1 x 9.1 x 11.0 x 2.1% (7.8)% (16.9)% 77.7 % 39.3 % 19.6 % Deutsche Telekom 16.21 71,509 131,433 11,134 71,058 52.8 % (5.6)% 1.6 x 1.6 x 5.8 x 5.4 x 19.3 x 18.5 x 1.0% 6.5% NA 39.7 % 27.4 % 4.4 % DIRECTV 76.42 38,934 56,295 2,180 19,541 35.0 % 10.7 % 1.8 x 1.7 x 7.2 x 6.6 x 14.1 x 12.9 x 5.0% 9.1% 9.6% 47.6 % 24.5 % 9.4 % Dish Netw ork 62.21 28,514 32,425 9,739 13,651 64.1 % 7.4 % 2.3 x 2.2 x 11.4 x 11.1 x 23.0 x 32.1 x 5.3% 3.5% (28.5)% 37.2 % 20.4 % 8.9 % EchoStar 47.56 4,306 5,108 1,621 2,422 22.0 % (4.3)% 1.6 x 1.5 x 7.9 x 6.0 x NA NA 6.8% 31.5% NA 32.8 % 19.7 % 0.1 % Gogo 20.54 1,746 1,726 266 247 NA (17.3)% 5.3 x 4.2 x NA NA NA NA 26.1% NA 83.9% 48.8 % 3.3 % (79.9)% Inmarsat 12.11 5,413 7,226 144 1,957 13.5 % (3.3)% 5.7 x 5.8 x 11.2 x 11.4 x 21.5 x 27.3 x (0.7)% (1.6)% (21.3)% 62.4 % 50.9 % 20.2 % Intelsat 18.72 1,986 17,251 248 15,513 NA (16.9)% 6.6 x 6.9 x 8.9 x 8.9 x 17.4 x 8.7 x (4.3)% 0.0% NA 85.6 % 74.5 % 4.1 % MegaFon 28.15 16,132 19,260 1,498 4,626 (9.2)% (16.0)% 2.1 x 2.1 x 4.9 x 4.8 x 10.2 x 10.3 x 0.5% 1.3% (0.3)% 72.7 % 43.8 % 18.1 % NTT DOCOMO 15.81 65,575 64,328 3,368 2,121 4.8 % (3.6)% 1.5 x 1.4 x 4.4 x 4.1 x 12.8 x NA 5.8% 7.5% NA 30.0 % 34.8 % 12.1 % Orange 14.77 38,900 83,816 8,579 53,496 46.1 % 19.2 % 1.5 x 1.5 x 4.9 x 5.0 x 16.0 x 11.1 x (3.1)% (2.3)% NA 39.5 % 30.3 % 4.3 % SES 37.59 15,149 20,385 749 5,985 20.2 % 16.3 % 7.9 x 7.5 x 11.4 x 10.2 x 18.2 x 18.3 x 6.4% 12.3% (0.6)% 83.6 % 69.6 % 32.4 % Sky Vision 0.21 1,483 1,676 42 235 (7.2)% 27.7 % 6.8 x 5.1 x 18.4 x 12.5 x NA NA 31.7% 47.0% 161.4% 19.7 % 36.6 % (5.7)% SOFTBANK 75.76 90,041 158,262 19,464 87,685 64.4 % (13.4)% 3.0 x 2.1 x 9.2 x 7.7 x 16.5 x NA 44.9% 19.4% NA 44.3 % 32.9 % 10.5 % Sprint 9.19 36,171 61,713 7,469 33,011 48.0 % (14.5)% 1.7 x 1.7 x 12.1 x 9.3 x NA NA (0.4)% 31.1% 48.5% 42.9 % 14.3 % (5.9)% Telecom Italia 1.18 21,272 62,490 10,014 51,233 67.1 % 18.8 % 1.9 x 2.0 x 4.8 x 5.0 x 7.9 x 11.0 x (4.6)% (3.6)% (27.9)% 53.2 % 40.2 % 9.0 % Telefónica 15.83 71,555 139,057 16,088 83,590 17.7 % (2.9)% 1.7 x 1.9 x 5.3 x 5.7 x 11.8 x 12.2 x (7.1)% (6.7)% (3.1)% 58.4 % 33.0 % 7.6 % Verizon 47.57 196,940 236,425 54,129 93,614 (3.2)% (3.2)% 2.0 x 1.9 x 6.0 x 5.3 x 16.8 x 13.7 x 3.8% 13.3% 22.7% 62.8 % 32.7 % 6.8 % ViaSat 69.04 3,182 3,812 41 672 42.5 % 10.2 % 2.9 x 2.6 x 20.4 x 13.4 x NA NA 9.8% 52.2% NA 26.1 % 14.2 % 1.8 % Vodafone 3.67 97,087 135,916 16,205 55,034 (29.3)% (49.0)% 1.9 x 1.9 x 6.4 x 6.4 x 2.5 x 16.7 x (0.2)% 0.1% (85.3)% 30.5 % 29.1 % 55.1 % Mean 55,050 75,599 10,495 31,044 20.9 % (2.5)% 2.9 x 2.7 x 8.4 x 7.4 x 14.5 x 15.1 x 6.0% 10.3% 11.3% 50.0 % 32.9 % 7.2 % Median 36,171 61,713 3,445 15,513 17.7 % (3.3)% 2.0 x 1.9 x 6.8 x 6.2 x 15.0 x 13.0 x 2.4% 6.5% 3.1% 47.6 % 32.7 % 9.0 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 52 Investment Banking Advisors 52

Trading & Operating Metrics

Wireless Semis Broadcom 31.47 18,284 17,246 2,432 1,394 (9.3)% 6.2 % 2.1 x 2.0 x 8.8 x 13.8 x 11.6 x 12.9 x 3.8% (36.6)% (9.7)% 50.3 % 23.9 % 19.3 % CSR 12.09 1,983 1,678 306 1 65.1 % 15.5 % 1.7 x 2.0 x 11.1 x 12.2 x 26.3 x 22.6 x (11.2)% (8.9)% 16.1% 51.6 % 15.7 % 7.9 % Hittite Microw ave 63.04 1,942 1,470 473 0 4.1 % 2.1 % 5.4 x 5.1 x 12.4 x 12.1 x 27.6 x 27.7 x 5.5% 2.8% (0.2)% 71.1 % 43.3 % 25.9 % Marvell 15.75 7,929 5,959 1,969 0 48.9 % 9.5 % 1.8 x 1.6 x 12.5 x 9.1 x 15.3 x 14.7 x 10.4% 37.4% 3.9% 51.4 % 14.0 % 15.3 % MediaTek 14.77 19,813 16,130 4,656 972 28.9 % (0.5)% 3.5 x 2.5 x 17.9 x 11.0 x 21.5 x 16.9 x 43.3% 63.4% 26.8% 44.0 % 19.7 % 20.4 % QUA LCOMM 78.86 133,359 116,092 17,280 13 17.8 % 6.2 % 4.6 x 4.2 x 12.4 x 10.5 x 18.5 x 14.8 x 8.1% 18.7% 24.9% 59.6 % 36.6 % 29.2 % RF Mic r o 7.88 2,226 2,107 206 86 48.1 % 52.7 % 1.8 x 1.8 x 17.2 x 9.5 x 19.7 x 14.5 x 1.1% 80.6% 35.6% 33.8 % 10.5 % 9.6 % Skyw orks Solutions 37.52 7,103 6,454 649 0 70.4 % 31.4 % 3.5 x 3.1 x 13.4 x 10.0 x 16.1 x 13.9 x 11.3% 33.0% 15.8% 43.2 % 26.2 % 24.2 % STMic r o 9.26 8,252 7,511 1,894 1,153 20.5 % 15.2 % 0.9 x 0.9 x 15.3 x 7.1 x NA NA (1.8)% 116.1% NA 32.3 % 6.1 % (2.5)% Texas Instruments 47.16 51,015 52,344 3,829 5,158 32.9 % 7.4 % 4.3 x 4.2 x 13.6 x 11.6 x 23.2 x 20.7 x 3.2% 17.6% 11.9% 52.1 % 31.5 % 18.5 % TriQuint 13.39 2,193 2,114 79 0 164.6 % 60.6 % 2.4 x 2.3 x 22.9 x 12.5 x NA 30.0 x 4.7% 84.2% NA 31.6 % 10.3 % 1.4 % Mean 23,100 20,828 3,070 798 44.7 % 18.7 % 2.9 x 2.7 x 14.3 x 10.8 x 20.0 x 18.9 x 7.1% 37.1% 13.9% 47.4 % 21.6 % 15.4 % Median 7,929 6,454 1,894 13 32.9 % 9.5 % 2.4 x 2.3 x 13.4 x 11.0 x 19.7 x 15.9 x 4.7% 33.0% 15.8% 50.3 % 19.7 % 18.5 %

Wireless Tower American Tow er 81.87 32,340 46,525 294 14,478 6.4 % 2.6 % 13.8 x 11.7 x 23.1 x 18.2 x 55.8 x 39.2 x 18.6% 27.3% 42.3% 74.4 % 59.9 % 17.4 % Bharti Infratel 3.40 6,420 6,338 546 463 4.3 % 25.1 % 3.7 x 3.3 x 9.2 x 8.1 x 28.7 x 24.7 x 11.0% 13.1% 16.5% 51.7 % 39.7 % 12.9 % Crow n Castle 73.78 24,479 35,850 223 11,595 5.9 % 0.5 % 11.9 x 10.2 x 21.1 x 16.8 x NA 62.0 x 15.9% 25.6% NA 65.4 % 56.2 % 2.8 % GTL Infrastructure 0.02 54 2,352 57 2,355 (52.0)% (27.8)% 8.6 x NA 15.5 x NA NA NA NA NA NA 78.3 % 55.3 % (13.8)% SBA Comm 90.96 11,712 17,461 128 5,877 26.3 % 1.2 % 13.4 x 12.2 x 24.7 x 18.8 x NA NA 9.9% 31.2% NA 68.7 % 54.2 % (2.6)% Mean 15,001 21,705 249 6,954 (1.8)% 0.3 % 10.3 x 9.3 x 18.7 x 15.5 x 42.3 x 42.0 x 13.9% 24.3% 29.4% 67.7 % 53.1 % 3.3 % Median 11,712 17,461 223 5,877 5.9 % 1.2 % 11.9 x 11.0 x 21.1 x 17.5 x 42.3 x 39.2 x 13.5% 26.5% 29.4% 68.7 % 55.3 % 2.8 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 53 Investment Banking Advisors 53

Capstone Partners Investment Banking Advisors

Observations Technology & and RecommendationsTelecom Team

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 54 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.54 BUILT FOR THE MIDDLE MARKET.TM

Technology & Telecom Team

DAVID MICHAELS Managing Director, Head of Technology & Telecom Group Phone: (858) 926-5950 Email: [email protected] David Michaels is a Managing Director of Capstone where he is responsible for managing the firm’s Technology & Telecom Group (TTG). David founded SagePoint Advisors in 2008, a boutique investment banking firm focused on providing merger, acquisition and strategic advisory services to growth companies in the technology and telecom sectors. Prior to founding SagePoint, David was a Co-Founder, Partner and Managing Director at Montgomery & Co., a leading investment bank focused on serving emerging-growth technology companies and their venture backers. David co-founded Montgomery’s investment banking business in 1996 and played an instrumental role in building the business to over $50 million in revenues and 80 employees. Mr. Michaels also ran the firm’s Communications and Digital Media Technology practice areas for several years prior to his departure. David has intimate knowledge of the strategic landscape, market dynamics and technology underpinnings of several high technology market segments including Mobile Software & Services, Consumer Internet, E-Commerce, Enterprise SaaS, Cloud & Infrastructure Software and Consumer, IT & Telecom Hardware. Prior to joining Montgomery in 1994, David worked at Bankers Trust Corporate Finance Department, where he helped execute merger and acquisition assignments. Prior to that, Mr. Michaels worked as a structural engineer at General Dynamics, Mr. Michaels received an M.B.A. in entrepreneurship from the Anderson School of Management at UCLA and holds a B.S. in Mechanical Engineering from the University of Michigan.

JOHN SNEAD Managing Director, Head of International Phone: 44 (0)7979 704302 Email: [email protected]

John Snead is responsible for managing the firm’s international operations as Managing Director of Capstone Grenport Ltd (CGL), focusing on the European technology and private equity markets. In his capacity, John is instrumental the firm’s cross border M&A and financing activities. He joins Capstone with 25 years of experience in in the investment banking and financial markets both in London and Silicon Valley. For the seven years prior to joining Capstone, John was the founder and Managing Partner of Grenport Limited, a London-based investment banking boutique serving the strategic and transaction needs of emerging technology companies. Prior to Grenport, John was a Managing Director in Kroll’s corporate finance group. He has also served as a senior professional at leading financial advisory firms such as Arthur Andersen, KPMG and Morgan Grenfell. John is particularly experienced in the technology sector where he has advised on more than 80 transactions, primarily in the software and IT services sectors. John holds an MBA, CFA, CF qualifications and is regulated by ICAEW.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 55 Investment Banking Advisors 55

Technology & Telecom Team

JOHN FERRARA President and Managing Partner Phone: (617) 619-3325 Email: [email protected]

John serves as the Managing Partner of Capstone, responsible for the firm’s investment and merchant banking operations, as well as managing client transactions. During his tenure as Managing Partner, Capstone has completed three acquisitions to expand the firm’s presence from Boston to include seven offices internationally, culminating in the “Global Investment Banking Boutique of the Year” award in 2012. Over his 25+ year career in mergers & acquisitions, venture capital and management consulting, John has executed well over 150 transactions and related engagements. Prior to 2002, when he acquired the practice he initially founded from Arthur Andersen to form Capstone, John served as a Regional Managing Partner with Andersen Corporate Finance LLC. While with Andersen, John held various national and global leadership positions. He started his career in Lehman Brothers' M&A group in New York, London and Riyadh, later becoming a founding member of Rodman & Renshaw's M&A practice in New York. After a break to compete in Australia's semi-professional baseball league, John joined The Deloitte Consulting Group in Los Angeles to focus on turnaround and interim management engagements. John has been recognized as “Investment Banker of the Year” in 2012, “Deal Maker of the Year” in 2010 and received the “40 Under 40” award for entrepreneurial excellence in 2006. He is the founder of the Spirit Triumph Cancer Foundation, author of the children’s book "Beyond the Waterspout" and former owner in the Holyoke Sox, a baseball franchise in the NECBL. John earned his MBA from The Anderson School at UCLA and the London School of Economics. He holds dual BA degrees from Wesleyan University and is qualified as a General Securities Principal.

TEAK MURPHY Vice President, Technology & Telecom Group Phone: (310) 746-5006 Email: [email protected] Teak joins Capstone as a Vice President in the Technology & Telecom Group, based out of San Diego. Prior to Capstone’s acquisition of SagePoint Advisors, Teak worked at SagePoint as a Senior Associate advising technology companies on mergers, acquisitions and strategic capital raises. Prior to joining SagePoint, Teak worked as a Senior Associate with Enterprise Partners Venture Capital, the largest Southern California based VC firm, where he evaluated investment opportunities and worked closely with senior management and board members to successfully grow portfolio companies. Prior to Enterprise Partners, Teak worked as an Associate in technology investment banking at Montgomery & Co. where he spent three years working closely with SagePoint's founder David Michaels on buy-side and sell-side M&A transactions. Prior to Montgomery, Teak worked at Cowen & Co. advising technology companies on M&A and IPO transactions. Teak's experience working on fund raising, mergers and acquisitions, and initial public offerings as both an advisor and investor provides unique insight into the needs of venture-backed companies. Teak graduated from the University of Southern California with honors, receiving a B.S. in Business Administration/Finance.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 56 Investment Banking Advisors 56

Technology & Telecom Team

BRANDON OVERMYER Associate, Technology & Telecom Group Phone: (310) 929-5177 Email: [email protected] Brandon is an Associate in the Technology & Telecom Group, working closely with clients to execute and optimize mergers, acquisitions and strategic capital raises. Prior to joining Capstone, Brandon was an Analyst in technology investment banking with ArchPoint Partners in San Francisco, supporting the senior team on middle market domestic and cross-border technology transactions. Brandon has previously worked in varying roles with Apple, LG and a number of startup ventures in addition to civil litigation practice. Brandon received his BA from University of Florida, graduating with distinction in three years. He received his JD from Baylor University School of Law and is a member of the Florida Bar.

HIROKI HIGASHIHARA Analyst, Technology & Telecom Group Phone: (310) 929-7415 Email: [email protected] Hiroki works closely with senior team members of the Technology & Telecom Group, as an Analyst, to execute various corporate financing transactions. Prior to joining Capstone, Hiroki interned at an investment management firm, Sage Capital Advisors, conducting back-testing models and investment performance analyses. He also interned at an Internet Security software company, gaining exposure to corporate financial planning and analysis. Hiroki received a BS in Management Science along with a minor in Accounting from University of California, San Diego. Hiroki graduated as a team member of the Thurgood Marshall Honors Program.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 57 Investment Banking Advisors 57