The fourth week of April had only a marginal number of capital raises (four) and not enough to push the month above March and February levels. Total financings (month-to-date) were $102.3 million, with February and March closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a total of 16 deals closed, with the $20 million raise by Collective Media and $16 million by GOOM Radio being major contributors. Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), with 22 companies showing positive returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with a 27.7% return, while DigitalTown Inc. (DGTW-OTCBB) had the worst return, dropping 21.7% in the week. Two companies had better than 20% price increases last week.

1. SOFTWARE & SERVICES 28 APRIL 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
WEEK FO UR IN APRIL MOSTLY Q UIET; MEDIA COMPANY BATANGA RAISES $7.5 MILLION
PI C K- U P I N ACT I VIT Y ON L Y MA RG IN AL IN W EE K F OU R
The fourth week of April had only a marginal number of capital raises (four) and not enough to push the month above
March and February levels. Total financings (month-to-date) were $102.3 million, with February and March closing off
at $185.5 mm and $159.5 mm, respectively. As of last week, a total of 16 deals closed, with the $20 million raise by
Collective Media and $16 million by GOOM Radio being major contributors.
W ith four days left in April, it is evident that the month may likely finish at or slightly below March levels, unless a few
high dollar financings materialize. W e speculate that capital market activity in April (for W eb 2.0 companies) world-
wide has dropped from prior months, potentially as a follow-on (time lagged) effect of the equity markets. W ith a
seeming capital market revival on the horizon (as exhibited by stock market index levels) and if sustainable, we
should expect institutional investors to participate in venture capital funds or direct investments in private companies
– albeit slowly.
Financing Activity Last Three Months
200.0 8.0
180.0
7.0
160.0
6.0
140.0
5.0
120.0
(US$m)
(US$m)
100.0 4.0
80.0
3.0
60.0
2.0
40.0
1.0
20.0
0.0 0.0
Feb-09 Mar-09 Apr-09
Total Average
Capital Market Activity: Four weeks into April and we saw 16 companies raising money, with GOOM Radio and
Collective Media still leading the list with $16 million and $20 million, respectively. The largest raise last week was by
Batanga – raising $7.5 million. The month-to-date total capital raised stands at $102.3 million. The Rubicon Project
(ad network sector) and Cellufun (gaming sector) followed GOOM Radio, raising $13 million and $10 million,
respectively.
Price Performance: Most of the companies in our universe had positive stock price performances over the past week
(for stocks with prices greater than $1), with 22 companies showing positive returns on the week. Modern Times
Group Mtg AB (MTG B-OM) led the group with a 27.7% return, while DigitalTown Inc. (DGTW -OTCBB) had the worst
return, dropping 21.7% in the week. Two companies had better than 20% price increases last week.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550

2. Page 2
THE WEB 2.0 UNIVERSE
Ninety-tw o public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market
cap of ~ $41 billion (Figure 1). The average market cap for the group is ~$452 million (but a median of only $45.8 million),
with average trailing revenue of $145.7 million (median $51.8 million). The companies are also generally profitable, with a
median EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.3x) and 9.1x
trailing EBITDA (median 7.6x). Thirteen of the companies have more than 500 employees.
C omparable C ompany A nalys is > W eb 2.0
Trading Current U S D Market U S D LT M Total US D L TM T otal E B ITDA TE V/LT M T E V/LT M
C om pan y Nam e L TM as o f T ic ker E xc h ang e Cu rrenc y H Q Pr ic e C ap ($m) R ev ($m) E B ITDA ($m) % R evenu e E B IT DA E mployees
Acce le rize N ew Me dia, Inc. 1 2/31 /200 8 AC LZ OT C B B USD U nited S ta tes 0 .49 1 3.4 3.8 (4 .8) NM 4.7 x - 11
Actoz S of t C o., L td. 1 2/31 /200 8 A0 527 90 K OS E KR W S outh K orea 14, 700 9 3.2 69. 5 1 3.9 20 .0% 0.9 x 4.7x NA
AQ Inte ractive , Inc. 1 2/31 /200 8 38 38 TSE JPY J apan 47 ,100 .00 2 6.2 61. 6 4 .9 8 .0% - - NA
As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K USD U nited S ta tes 0 0 .1 0.1 (2 .3) NM 8.1 x - 3
B igstring Corp. 1 2/31 /200 8 BS G C OT C B B USD U nited S ta tes 0 .01 0 .7 0.1 (2 .1) NM 23.6 x - 4
B e tawave Corpora tion 1 2/31 /200 8 BW AV OT C B B USD U nited S ta tes 0 3 .2 7.7 (1 1.8) NM - - 45
B e yond Commerce, Inc. 1 2/31 /200 8 BY OC OT C B B USD U nited S ta tes 1 .49 6 1.6 1.8 (8 .6) NM 35.5 x - 43
B right T hings plc 9 /30 /200 8 AIM:B G T AIM GBP U nited K ingdom 0 5 .0 0.2 (1 .6) NM 20.6 x - 3 ,12 5
B roa dW ebAs ia Inc. 9 /30 /200 8 BW B A OT C P K USD U nited S ta tes 0 .45 3 8.2 0.0 (4 .6) NM - - 37
C DC C orp. 9 /30 /200 8 C HIN .A Nas da qG S USD H ong K ong 1 12 6.3 428 .1 1 8.8 4 .4% 0.4 x 9.7x NA
C hina G ate wa y C orpora tion 9 /30 /200 8 CGWY OT C B B USD U nited S ta tes 0 .00 0 .0 6.7 (6 .6) -9 8.9% 6.0 x - NA
C hine s e G amer International 1 2/31 /200 8 G T S M:308 3 GT S M TWD T aiwan 215 54 0.7 46. 2 2 3.3 50 .5% 1.1 x 1 3.3 x NA
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B USD U nited S ta tes 0 .10 6 .4 1.3 NM NM 0.8 x 4.7x 574
C yberplex Inc. 1 2/31 /200 8 T S X:C X TSX C AD C ana da 1 5 3.8 46. 7 3 .9 8 .4% 0.5 x 3.9x NA
D ADA S pA 9 /30 /200 8 C M:DA CM EUR Ita ly 5 .85 12 3.7 221 .2 3 5.3 16 .0% - - NA
D XN Holdings B hd 1 1/30 /200 8 DXN KL SE MY R Ma la ys ia 0 2 0.2 76. 7 1 0.2 13 .3% 5.6 x - 11
D ibz Inte rnational, Inc. NA DIB Z OT C P K USD U nited S ta tes 0 .00 0 .0 NA NM NM - - 3
D igitalP ost Inte ra ctive , Inc. 9 /30 /200 8 DG LP OT C B B USD U nited S ta tes 0 1 .3 0.4 (3 .3) NM - - 6
D igitalT own, Inc. 1 1/30 /200 8 DG T W OT C B B USD U nited S ta tes 2 .35 6 3.6 NM (2 .5) NM 2.2 x - NA
D olphin D igital Me dia, Inc. NA DP DM OT C B B USD U nited S ta tes 1 2 6.1 NA NM NM - - NA
E olith C o. L td. 1 2/31 /200 7 A0 410 60 K OS E KR W S outh K orea 760 .00 4 0.7 18. 6 (0 .1) -0 .3% - - 22
E xte ns ions , Inc. 1 2/31 /200 8 E XT I OT C P K USD U nited S ta tes 0 1 4.2 NM NM NM 0.0 x - 29
F inancia l Media G roup, Inc. 1 1/30 /200 8 F NG P OT C B B USD U nited S ta tes 0 .00 0 .3 6.8 1 .2 18 .3% 5.2 x - NA
F luid Mus ic Ca nada, Inc. 9 /30 /200 8 T S X:F MN TSX C AD U nited S ta tes 0 1 5.0 4.2 (8 .6) NM 1.1 x 7.8x NA
F rogs te r Interactive P icture s AG 6 /30 /200 8 FRG XT R A EUR G ermany 9 .06 2 7.8 5.3 (3 .2) -6 0.6% 0.4 x 1.7x NA
G a ma nia Digital E ntertainment C o., L td. 1 2/31 /200 8 61 80 GT S M TWD T aiwan 32 14 4.4 111 .5 1 6.1 14 .5% 6.9 x - 94
G a me On C o L td. 1 2/31 /200 8 38 12 TSE JPY J apan 92 ,000 .00 9 0.9 76. 2 1 9.7 25 .9% - - NA
G e oS e ntric O yj 1 2/31 /200 8 G E O1 V H LS E EUR F inland 0 4 6.7 5.7 (1 2.8) NM 1.5 x 6.3x NA
G iant Intera ctive G roup, Inc. 1 2/31 /200 8 GA NY S E USD C hina 8 .50 1,9 21.0 233 .6 14 4.6 61 .9% - - 636
G iga Media Ltd. 1 2/31 /200 8 G IG M Nas da qG S USD T aiwan 7 36 4.7 190 .4 4 6.0 24 .2% 40.8 x - NA
G ravity C o., L td 9 /30 /200 8 G R VY Nas da qG M USD S outh K orea 0 .90 2 5.0 36. 5 7 .0 19 .2% 1.2 x 6.9x NA
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE JPY J apan 5, 650 1,2 88.0 30. 0 1 0.8 36 .0% 1.2 x - NA
G ungH o O nline E ntertainment, Inc. 1 2/31 /200 8 37 65 OS E JPY J apan 139 ,000 .00 16 2.7 114 .9 2 0.5 17 .8% 0.3 x 7.6x 3 ,20 0
H anbitS of t, Inc. 1 2/31 /200 8 A0 470 80 K OS E KR W S outh K orea 4, 770 7 7.9 51. 8 (1 4.6) -2 8.2% - - NA
IAC /InterActiveC orp. 1 2/31 /200 8 IAC I Nas da qG S USD U nited S ta tes 15 .92 2,2 43.9 1 ,44 5.1 6 4.6 4 .5% - - NA
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B USD C ana da 0 1 7.5 0.0 (0 .8) NM 2.1 x - NA
IdeaE dge, Inc. 1 2/31 /200 8 OT C B B :IDAE OT C B B USD U nited S ta tes 0 .44 1 8.8 0.0 (4 .6) NM 0.9 x 2.5x 72
is ee media Inc. 1 2/31 /200 8 IE E T S XV C AD C ana da 0 4 .2 1.2 (4 .8) NM 2.6 x - 237
J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 0 .47 1 6.4 12. 7 4 .7 37 .2% 1.1 x 1 1.2 x NA
J umpT V Inc. 1 2/31 /200 8 T S X:J T V TSX C AD C ana da 1 5 1.0 13. 4 (8 .4) -6 2.6% 3.7 x 9.5x 2 ,27 1
K a boos e Inc. 1 2/31 /200 8 T S X:K AB TSX C AD C ana da 0 .59 6 7.4 66. 8 6 .6 9 .9% 3.1 x - NA
K ings oft Co. Ltd. 1 2/31 /200 8 38 88 S E HK HKD C hina 4 51 5.9 120 .2 4 6.3 38 .5% 0.2 x - NA
Lingo M edia Corporation 9 /30 /200 8 T S XV : LM T S XV C AD C ana da 0 .90 9 .5 3.3 (1 .4) -4 2.5% - - 90
Live World Inc. 1 2/31 /200 8 LV WD OT C P K USD U nited S ta tes 0 3 .1 11. 8 (0 .5) -4 .3% - - 13
LookS mart, Ltd. 1 2/31 /200 8 LOOK Nas da qG M USD U nited S ta tes 1 .36 2 3.1 65. 0 (2 .0) -3 .1% 5.4 x 1 4.3 x NA
Magnitude Information S ys tems Inc. 9 /30 /200 8 MA G Y OT C B B USD U nited S ta tes 0 6 .5 0.1 (3 .2) NM 1.4 x 8.5x 2 ,96 9
Mixi, Inc. 1 2/31 /200 8 21 21 TSE JPY J apan 483 ,000 .00 75 7.4 119 .8 4 5.6 38 .0% - - 3
Mode rn Times G roup Mtg AB 1 2/31 /200 8 MT G B OM S EK S weden 212 1,6 68.7 1 ,57 2.8 25 3.7 16 .1% 3.3 x - NA
Moggle , Inc 1 2/31 /200 8 MMOG OT C B B USD U nited S ta tes 2 .30 8 3.5 NM (1 .1) NM 3.0 x 1 1.3 x NA
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 4 .4 1.0 (2 .1) NM 1.9 x 4.2x 2 ,42 6
N E OW IZ G ames C orpora tion 1 2/31 /200 7 A0 956 60 K OS E KR W S outh K orea 58 ,400 .00 41 8.5 134 .3 3 6.1 26 .9% - - NA
N etD ragon W ebS oft, Inc. 1 2/31 /200 8 77 7 S E HK HKD C hina 5 31 3.1 87. 3 3 9.9 45 .7% - - 19
N ete as e.com I nc. 1 2/31 /200 8 NT E S Nas da qG S USD C hina 30 .25 3,7 22.3 451 .8 29 3.7 65 .0% - - NA
N eXplore Corpora tion 9 /30 /200 7 NXP C OT C P K USD U nited S ta tes 1 4 1.8 NM (4 .9) NM 0.2 x 1.3x 286
N gi G roup Inc. 1 2/31 /200 8 24 97 TSE JPY J apan 36 ,300 .00 4 5.8 100 .4 3 0.9 30 .8% 2.4 x 9.6x 3 ,40 0
N orthgate Te chnologies L imited 1 2/31 /200 8 59 005 7 BS E INR India 46 3 1.9 135 .1 2 3.8 17 .6% 0.1 x - 627
Open T e xt Corp. 1 2/31 /200 8 OT E X Nas da qG S USD C ana da 33 .54 1,7 40.7 769 .3 19 5.0 25 .3% - - NA
Openwave S ys tems Inc. 1 2/31 /200 8 OP W V Nas da qG S USD U nited S ta tes 1 9 9.1 199 .6 (1 0.2) -5 .1% 2.6 x - NA
P e rf ect W orld C o., Ltd. 1 2/31 /200 8 PW R D Nas da qG S USD C hina 16 .78 88 5.3 210 .5 11 3.9 54 .1% - - 74
P hotoChannel N etwork s Inc. 1 2/31 /200 8 T S XV : P N T S XV C AD C ana da 2 4 3.3 16. 2 (0 .8) -4 .9% 0.0 x 0.2x NA
Quepa s a C orp. 1 2/31 /200 8 QP S A Nas da qC M USD U nited S ta tes 0 .87 1 1.1 0.1 (1 1.4) NM 0.1 x 0.3x NA
OA O R B C Information S ys tems 1 2/31 /200 7 R BC I R TS USD R us s ia 1 10 5.7 141 .0 1 8.4 13 .1% 0.8 x 5.9x 514
S handa Interactive E ntertainme nt L td. 1 2/31 /200 8 S N DA Nas da qG S USD C hina 47 .30 3,2 81.8 522 .7 24 0.2 46 .0% 2.0 x 2 1.1 x NA
S hutte rf ly, Inc. 1 2/31 /200 8 S F LY Nas da qG S USD U nited S ta tes 10 25 5.1 213 .5 2 8.4 13 .3% 1.8 x 5.8x 11
S K C ommunications Co., Ltd. 1 2/31 /200 7 A0 662 70 K OS E KR W S outh K orea 10 ,000 .00 30 6.4 154 .5 1 4.5 9 .4% 1.1 x - 33
S N AP Inte ra ctive , Inc. 1 2/31 /200 8 ST VI OT C B B USD U nited S ta tes 1 7 .0 3.0 0 .9 31 .4% 0.0 x - NA
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K USD U nited S ta tes 0 .01 0 .0 2.0 (0 .7) -3 4.8% 3.8 x 9.0x 3 ,19 7
S ocia l Media Ve nures , Inc. 1 2/31 /200 8 S M VI OT C P K USD U nited S ta tes 0 0 .0 0.1 (0 .1) -6 0.5% - - 15
S ohu. com Inc. 1 2/31 /200 8 S OH U Nas da qG S USD C hina 50 .53 1,9 26.0 429 .1 18 0.5 42 .1% 0.8 x 3.8x 183
S ite s earch C orporation 1 /31 /200 9 STPC OT C B B USD U nited S ta tes 3 2 8.2 NM (1 .1) NM - - 7
S park Networks , Inc. 1 2/31 /200 8 LOV AME X USD U nited S ta tes 2 .25 4 6.3 57. 3 1 2.3 21 .5% 15.9 x 3 2.5 x 6 ,19 4
S pectrumDNA, Inc. 1 2/31 /200 8 S P XA OT C B B USD U nited S ta tes 0 9 .7 0.1 (2 .5) NM 0.2 x - 347
T encent Holdings L td. 1 2/31 /200 8 70 0 S E HK HKD C hina 65 .95 15,3 25. 4 1 ,04 7.9 51 2.5 48 .9% - - NA
T he Parent C ompany 8/2/2008 K IDS .Q OT C P K USD U nited S ta tes 0 0 .3 112 .0 (1 3.5) -1 2.0% - - 310
T he 9 L imited 1 2/31 /200 8 NCT Y Nas da qG S USD C hina 9 .21 24 7.0 250 .2 8 4.3 33 .7% 4.6 x - 16
T he S treet.com, Inc. 1 2/31 /200 8 TSC M Nas da qG M USD U nited S ta tes 2 7 1.9 71. 9 7 .0 9 .7% 0.3 x - 700
T otal S port Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 .03 0 .1 2.0 (1 .0) -5 0.6% 0.1 x 2 9.5 x NA
T ree.C om, Inc. 1 2/31 /200 8 TR EE Nas da qG M USD U nited S ta tes 6 5 8.3 228 .6 (2 3.9) -1 0.4% 1.0 x 4.5x 1 ,46 9
U nis erve C ommunications Corp. 1 1/30 /200 8 T S XV : US S T S XV C AD C ana da 0 .04 0 .8 24. 4 0 .1 0 .4% 8.6 x - NA
U nited Online Inc. 1 2/31 /200 8 U NT D Nas da qG S USD U nited S ta tes 5 39 0.2 669 .4 15 3.9 23 .0% 1.1 x 6.3x 1 ,18 9
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B USD C ana da 0 .06 5 .1 0.6 (0 .5) -7 8.2% - - 4
V a lueC lick Inc. 1 2/31 /200 8 VC LK Nas da qG S USD U nited S ta tes 10 84 0.6 625 .8 11 3.6 18 .2% - - NA
V O IS , Inc. 1 2/31 /200 8 VOIS OT C B B USD U nited S ta tes 0 .30 2 .5 0.0 (1 .3) NM 4.3 x - 110
W ebze n Inc. 1 2/31 /200 8 W ZE N Nas da qG M USD S outh K orea 3 3 3.0 21. 2 (4 .2) -1 9.8% - - NA
W izza rd S of twa re Corpora tion 1 2/31 /200 8 W ZE AME X USD U nited S ta tes 0 .55 2 5.9 6.1 (6 .0) -9 8.2% - - 1
W oozyF ly, Inc. 1 2/31 /200 8 W ZY F OT C B B USD U nited S ta tes 0 2 .6 NM NM NM - - NA
W orlds .com Inc. 9 /30 /200 8 W DD D OT C B B USD U nited S ta tes 0 .17 8 .9 0.1 NM NM 3.1 x 9.8x 174
W ynds torm C orporation NA W YND OT C B B USD U nited S ta tes 0 1 .6 NA NM NM 2.2 x 9.8x NA
XIN G AG 1 2/31 /200 8 O1B C XT R A EUR G ermany 29 .77 19 9.0 45. 6 1 4.6 32 .0% 0.6 x - NA
Y e dangOnline Corp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 9, 670 11 2.7 51. 1 1 1.4 22 .4% 0.6 x - NA
Y nk K orea Inc. 1 2/31 /200 7 A0 237 70 K OS E KR W S outh K orea 4 ,700 .00 8 .6 14. 5 (1 .1) -7 .6% - - -
ZipLocal Inc. 1 2/31 /200 8 T S XV : ZIP T S XV C AD C ana da 0 0 .3 2.6 (2 .8) NM 40.8 x 3 2.5 x 2 0,16 4
H igh 15,3 25. 4 1 ,572 .8 51 2.5 65 .0% 40.8 x 3 2.5 x 20 ,16 4
Low 0 .0 0.0 -23.9 -9 8.9% - - 0
A vera ge 451.8 145.7 32.0 6.9% 4.7x 9.1x 1,122
Median 4 5.8 51. 8 1 .2 17 .6% 1.3 x 7.6x 183
Figure 1. Web 2.0 Universe Summary
Source. Capital IQ

3. Page 3
C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
Marginal activity - April financing will likely be below March: Last week closed with 16 financings (month-to-date April)
totalling $102.3 million. The month of April (so far) has registered four deals greater than or equal to $10 million and two
deals greater than $15 million. The month of March registered 22 financings (total $130.7 million, average $5.9 million)
compared to 25 financings announced in February, totalling $185.5 million, or $7.4 million on average (Figure 2). The
average value for February was above the $6.8 million average for January, with four financings over $15 million in
February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January.
Financing Activity Last Three Months
200.0 8.0
180.0
7.0
160.0
6.0
140.0
5.0
120.0
(US$m)
(US$m)
100.0 4.0
80.0
3.0
60.0
2.0
40.0
1.0
20.0
0.0 0.0
Feb-09 Mar-09 Apr-09
Total Average
Figure 2. Financings, Last Three Months
Source. Company reports
Collective Media largest deal in April: Four weeks into April and Collective Media tops the list with a $20 million raise,
followed by Goom Radio and The Rubicon Project with $16 million and $13 million, respectively (Figure 3). For additional
details, see Figures 23 and 24 (at end of note).

4. (US$m)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Twitter
Kaixin001.com
Collective Media
Source. Company reports
Synthasite
Tremor Media
GOOM Radio
Vidyo
Offerpal Media
Imagini
The Rubicon Project
Buzznet
Emergent Game
Figure 3. Capital Market Activity, Last Three Months
Outbrain
LendingClub
SendMe Inc.
companies raising $63.4 million.
Miva
Auditude
Cellufun
Glam Media
Visible Measures
SuperSecret
Tvtrip
GoViral
ScanScout
Batanga
Tongxue
Oodle
Greystripe
Wamba
DoubleTwist
OMGPOP
Socialtext
TextDigger
OneSpot
Mixercast
Apture
Simulmedia
Mixpo
FetchDog
Virtual Fairground
Tynt
SoundCloud
AnySource Media
Pixazza
7 Billion People
TubeMogul
Financing Summary - Last Three Months
FamilyLink.com
Tribal Nova
WhistleBox
Tripbase
Hunch
Bit.ly
Sports Composite DE
Mendeley
Outright
Tvinci
Filtrbox
Socialcast
Scan & Target
MMO Life
AdultSpace
Cake Financial
Myngle
33Across
fav.or.it
Three Melons
Foodista
Apr-09
Mar-09
Feb-09
Page 4
sector, with 12 companies raising over $74.4 million (Figure 4). The video sector has the next highest totals, with eight
Social Networks is the most active sector: Activity over the last three months was busiest in the Social Networks

5. Page 5
Capital Market Activity by Sector - Last Three Months
80.0
70.0
60.0
50.0
(US$m)
40.0
74.4
63.4
30.0 57.4
20.0 41.9 41.4
37.0
22.5 20.6
10.0
16.0 15.0
12.0 12.0 11.0
6.5 5.5 4.3 4.1 4.1 3.9 3.1 2.0 2.0
0.0 1.4 1.3 1.3
Comment/Reputation
Gaming
Visual Commerce
Wiki
Travel
Media
Microblog
Mobile
Publishing
Online Learning
Financial Services
Mobile Ad
Widget
Lending
Search
Infrastructure
Social Networks
Virtual Goods
SAS
Video
Aggregation
Virtual World
Crowdsourced
Ad Network
Analytics
Content
# companies
12 8 9 5 7 2 4 2 3 1 1 1 2 2 1 1 1 1 1 1 1 1 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months
Source. Company reports
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 Index outperforms: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the
NASDAQ composite index from mid-2008 until recently when it has moved higher than the NASDAQ index (Figure 5).

6. Page 6
Web 2.0 Index Price Performance
120
100
80
60
40
20
0
4/28/2008
5/12/2008
5/26/2008
6/9/2008
6/23/2008
7/7/2008
7/21/2008
8/4/2008
8/18/2008
9/1/2008
9/15/2008
9/29/2008
10/13/2008
10/27/2008
11/10/2008
11/24/2008
12/8/2008
12/22/2008
1/5/2009
1/19/2009
2/2/2009
2/16/2009
3/2/2009
3/16/2009
3/30/2009
4/13/2009
4/27/2009
^COMP - Share Pricing Index: Web 2.0 X (Market Cap)
Figure 5. Web 2.0 Price Performance
Source. Capital IQ
A positive week: Most of the companies in our universe had positive stock price performances over the past week (for
stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Modern Times
Group Mtg AB (MTG B-OM) led the group with a 27.7% return while DigitalTown Inc. (DGTW -OTCBB) had the worst return,
dropping 21.7% in the week.

7. Page 7
1 Week P rice P erformance
Modern Times G roup Mtg A B 27.7%
Eolith Co. Ltd. 21.6%
LookS mart, Ltd. 19.9%
DA DA S pA 17.3%
Chines e Gamer International 14.7%
HanbitS of t, Inc. 14.7%
GungHo Online Entertainment, Inc. 13.7%
Giant Interactive G roup, Inc. 11.8%
XING A G 10.3%
S ohu.com Inc. 8.8%
Frogs ter Interactiv e Pictures A G 8.5%
S handa Interactive Entertainment Ltd. 6.4%
Webz en Inc. 5.7%
Perfect World Co., Ltd. 5.3%
Neteas e.com Inc. 4.6%
V alueClick Inc. 4.4%
TheS treet.com, Inc. 4.0%
G ree, Inc. 3.7%
Tree.Com, Inc. 2.8%
Cy berplex Inc. 2.5%
Gamania Digital Entertainment Co., 0.8%
A Q Interactiv e, Inc. 0.2%
A ctoz S of t Co., Ltd. 0.0%
United Online Inc. -0.2%
G ameOn Co Ltd. -0.2%
B ey ond Commerce, Inc. -0.7%
G igaMedia Ltd. -1.0%
Openw ave S y s tems Inc. -1.7%
IA C/InterA ctiveCorp. -1.7%
S hutterf ly , Inc. -3.5%
The9 Limited -4.0%
S park Netw orks , Inc. -4.3%
Open Tex t Corp. -4.5%
PhotoChannel Netw orks Inc. -5.5%
CDC Corp. -15.7%
DigitalTow n, Inc. -21.7%
-30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%
Figure 6. 1-Week Price Performance
Source. Capital IQ

8. Page 8
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany Headline Notes
S hutterfly, Inc . (Nas daqG S : S FL Y) S hutterfly E xpands B eyond P hotos with New C oordina ted S hutterfly Inc. a nnounced the expa ns ion of its s ta tionery collection to include a n a rra y of new products a nd hundreds of exclus ive des igns by
S uites of Des igner S ta tionery s ome of the indus try's mos t celebra ted des igners . B uilding on S hutterfly's pos ition in ca rds , the new pers ona l s ta tionery line grows the
C ompa ny's des igns to ca ter to a variety of life's celebra tions . S hutterfly's s uite of s tationery now offers new items s uch a s pers ona lized pa rty
invita tions . S hutterfly's S ta tionery C ollection Includes , E xpa nded occa s ions for 5x7 s tationery ca rds . F rom moving a nnouncements to
birthda y invitations for a ll a ges a nd s ocia l corres pondence cards , S hutterfly's premium non-photo offering comes on hea vy-weight ca rds tock
with envelopes . Ma de from 30% pos t-cons umer wa s te, 5x7 s ta tionery cards a re s old in s ets , from $1. 39 per ca rd. New, s ma ller 4. 25x5. 5
s ta tionery ca rds . Ma ny of the new des igns ha ve coordina ted 4. 25x5. 5 tha nk you ca rds for a nnouncements a nd invita tions . T he s maller ca rd
provides a n elega nt wa y to s end a ha nd-written thank you or a note to s a y a s imple hello. C a rds a re s old in s ets with envelopes , from $0. 89
per ca rd. Des igner a ddres s la bels . T he new s tylis h, coordina ted a ddres s la bels a llow cus tomers to a dd a s ma ll, but noticeable, pers ona l touch
VOIS , Inc . (OTC B B :VOIS ) V O IS Inc. L a unches New S ocia l S ourcing W ebs ite V OIS Inc. la unched a new s ocia l s ourcing webs ite a imed a t s licing through the ma la is e and red ta pe of the tra ditiona l recruitment a nd
employment model. V ois . com a ims to be the firs t s ocia l commerce s ite tha t levera ges the power of s ocia l networking to help a global
audience find a nd offer immedia te work. W ith V OIS , members can pos t work, find work a nd network--a ll without ironing s lacks or vis iting
K inkos . F rom the profes s ional's pers pective, get to build ra pport with peers , form virtual cros s -functiona l tea ms , a nd then bid on a nd ta ckle
both temporary a nd perma nent projects . B uyers a nd s ellers a re encouraged to get to know more tha n each other's online ha ndles a nd hourly
ra tes through cha t rooms , interna l mes s aging, robus t profiles a nd even a trus ty rating s ys tem. W hile s ta nda rd freela nce ma rketpla ces
typica lly ta ke between 8-20% of the provider's payment by notorious ly nickel a nd diming us ers with fees and fine print, V OIS is a dhering to a
'F reemium' model. T his model offers a free vers ion of its webs ite to a ny member but is s upported by pa id credits of its mos t frequent us ers .
DigitalFX International, Inc . DigitalF X Interna tional Inc. Appoints R icha rd B urnett to Digita lF X Interna tiona l Inc. a nnounced tha t it ha s enga ged lea ding direct s elling indus try expert R icha rd B urnett, a s a s pecia l a dvis or to
(OTC B B : DGF X) L ea d S a les and Ma rketing ma na gement to front its s a les and ma rketing efforts within its independent dis tributor network. B urnett's enga gement is a critica l pa rt of the
compa ny's continued efforts to ens ure s us ta ina bility a nd reliability, a nd to s et the s ta ge for future growth. His res pons ibilities will include
as s es s ing a nd improving a ll a s pects of the company's a ffiliate network, a nd he will a ls o s upport the ma na gement team in its efforts to further
develop the C ompa ny's ma rket pos ition. R icha rd B urnett is F ounder & C E O of T op G un Network Inc. a nd ha s a 30 year tra ck record of
helping individua ls a nd compa nies dra ma tica lly increa s e s a les a nd improve lea ders hip performa nce.
C DC C orp. (Nas daqGS : C HIN.A); C DC C DC R eviews Alterna tives F or T hree B us ines s es C DC C orp. a nnounced tha t it pla ns to explore s trategic growth a lterna tives for its three core bus ines s tha t ha ve together increa s ed 2008
Games L imited; C DC G lobal S ervic es , aggrega te Adjus ted E B IT DA (a ) from continuing opera tions (b) by 34% compa red to 2007. T he three core bus ines s es a re C DC S oftwa re
Inc .; C DC S oftware C orporation C orporation, C DC G loba l S ervices a nd C DC G a mes L imited. P eter Y ip, C E O of C DC C orp s aid, “Des pite the globa l economic downturn,
three of our core bus ines s es a chieved a n impres s ive 34 percent increa s e, on a n a ggrega te ba s is , in Adjus ted E B IT DA from continuing
opera tions in 2008 compa red to the prior yea r. C DC C orpora tion has inves ted cons idera ble time a nd effort to develop thes e va rious core
bus ines s es a nd ea ch of them is a t a different s ta ge of ma turity. During 2008, C DC C orporation ha s improved s evera l of the key opera ting
metrics in thes e bus ines s es a nd is now in the proces s of exploring s tra tegic a nd growth a lterna tives with res pect to a ll of them. W e believe
tha t the exploration of s uch alterna tives for thes e bus ines s es could ultima tely unlock s ha reholder va lue in the compa ny, a s we feel our
s ha res are currently underva lued in the ma rket. ”
C DC C orp. (Nas daqGS : C HIN.A) C DC C orp. R eports Una udited E a rnings R es ults for the C DC C orp. reported una udited ea rnings res ults for the fourth qua rter a nd yea r ended December 31, 2008. F or the qua rter, the compa ny
F ourth Qua rter a nd Y ea r E nded December 31, 2008 reported opera ting los s from continuing opera tions of $57, 881, 000, los s before income ta xes of $87, 836, 000 a nd los s from continuing
opera tions of $84, 287, 000 or $0. 79 ba s ic a nd diluted per s ha re and net los s of $84, 015, 000 or $0. 78 bas ic a nd diluted per s ha re on tota l
revenues of $96, 236, 000 a ga ins t opera ting los s from continuing opera tions of $8, 986, 000, los s before income ta xes of $24, 920, 000 a nd los s
from continuing opera tions of $26, 188, 000 or $0. 24 ba s ic a nd diluted per s ha re a nd net los s of $93, 999, 000 or $0. 88 ba s ic a nd diluted per
s ha re on tota l revenues of $106, 926, 000 for the s ame period a yea r ago. T he company a ls o reported net ca s h provided by opera ting
activities $27, 106, 000. Adjus ted E B IT DA from continuing opera tions wa s $8. 0 million compa red to a djus ted E B IT DA of los s of $4. 5 million,
res pectively, for the fourth qua rter of 2007.
F or the yea r, the compa ny reported opera ting los s from continuing opera tions of $71, 424, 000, los s before income ta xes of $108, 079, 000 a nd
los s from continuing opera tions of $108, 445, 000 or $1. 01 ba s ic a nd diluted per s ha re a nd net los s of $116, 300, 000 or $1. 08 ba s ic a nd diluted
In the fourth quarter of 2008, the compa ny recorded a goodwill a nd intangible a s s et impa irment charge of $49. 0 million and a n impa irment cha
L ookS mart, L td. (Nas daqG M:L OOK ) L ookS mart Announces Limited B eta T es t of LookS ma rt Ltd. a nnounced the limited beta tes t of S ma rtR ota tion, a cos t-per-a cquis ition (C P A) driven tool tha t us es a tra cking pixel to
S ma rtR ota tion, a C os t-per-a cquis ition Driven T ool automa tica lly optimize ca mpa igns ba s ed on the bes t-converting a d crea tive. S ma rtR ota tion is pa rt of a la rger beta tes t of a d rota tion a nd is
the lates t a ddition to LookS ma rt's AdC enter, a powerful a d s erving a nd keyword a uction pla tform tha t ena bles advertis ers to ma na ge return
on inves tment (R OI) through increas ed ta rgeting a nd tra cking. L ookS ma rt's AdC enter proces s es more tha n a billion da ily queries for
LookS ma rt's s yndica ted network a nd is us ed by thous a nds of a dvertis ers via s elf-s ervice accounts , dedica ted ma na ged s ervices a nd bid
ma na gement through a dva nced AP I technology. T he AdC enter's ta rgeting a nd tra cking fea tures include geo-ta rgeting, a d s cheduling, a nd
convers ion tra cking a nd reporting a nd tra ffic ma na gement fea tures like referrer white-a nd bla ck-lis ting a nd ca mpaign-level feed ca pping.
S ma rtR ota tion is ava ila ble in limited beta tes ting to qualified cus tomers .
Quepas a C orp. (Nas daqC M: QP S A) Q uepa s a . com a nd W orldV ibe E nterta inment Announce Quepa s a C orp. , owner of Quepa s a . com, a nnounced a n exclus ive pa rtners hip with W orldV ibe E nterta inment G roup, L L C . Under the
E xclus ive P a rtners hip pa rtners hip Q uepas a . com will be the exclus ive online pa rtner for E s MiP la neta . com, the fa n s ite for 'B a ta lla de la s Americas , ' a mus ic-ba s ed
rea lity s how tha t s pa ns more tha n twenty countries throughout the America s , including the U. S . T he firs t 2009 s eas on is a ta lent s ea rch for
the ba nd 'X M2, ' in which three former members of the L atin s uper-group Menudo(T M), s ea rch for their final member. T he fully-interactive,
vibra nt online community, which will be powered by Q uepa s a . com in three la ngua ges : E nglis h, S pa nis h, a nd P ortugues e, will fea ture online
voting in which fa ns determine which contes ta nts move on a nd who goes home. P lus the genera l public will be invited to join the competition
by s ubmitting a video a udition online a nd enter the contes t via the web. T he multimedia community will als o include exclus ive online
performa nce highlights , behind the s cenes foota ge, contes ta nt profiles a nd photos , us er-genera ted content, and the a bility to uploa d
photogra phs a nd videos .
NetDragon W ebS oft, Inc . (S E HK : 777) NetDra gon W ebS oft, Inc. 's E quity B uyba ck has expired NetDra gon W ebS oft, Inc. (S E HK : 777) wa s granted s ha reholders a pprova l in the Annua l G eneral Meeting held on J une 12, 2008. Under the
program the compa ny intends to repurcha s e up to 10% of the is s ued s ha re ca pita l. T he s ha re capita l would be repurcha s ed in the s tock
excha nge. T he s ha re a uthority will expire ea rlies t of the conclus ion of the next Annua l G enera l Meeting or by the revoca tion or va riation of
this res olution by a n ordina ry res olution of the s ha reholders of the C ompa ny in genera l meeting. As of S eptember 30, 2008, the C ompa ny
ha s repurcha s ed 9, 370, 500 s ha res for a HK D 46. 90 million (C NY 41. 38 million). T he convers ion wa s ma de through www. oa nda . com on
S eptember 30, 2008.
NetDra gon W ebS oft, Inc’s s hare repurcha s e program expired on April 21, 2009.
NetDragon W ebS oft, Inc . (S E HK : 777) NetDra gon W ebS oft, Inc. a nnounces a n E quity B uyback NetDra gon W ebS oft, Inc. (S E HK : 777) wa s granted s ha reholders a pprova l to repurcha s e s hares in the Annua l G eneral Meeting held on April
21, 2009. Under the progra m, the compa ny intends to repurcha s e up to 52, 857, 086 s ha res repres enting 10% of the is s ued s ha re capita l of
the compa ny. T he Directors believe tha t it is in the interes ts of the C ompa ny a nd the S ha reholders to ha ve a genera l a uthority from the
S hareholders to ena ble the Directors to repurcha s e S ha res on G E M. S uch repurcha s es ma y, depending on ma rket conditions a nd funding
arra ngements a t the time, lead to a n enha ncement of the net a s s ets of the C ompa ny a nd/or its ea rnings per S hare a nd will only be ma de
when the Directors believe tha t s uch purcha s es will benefit the C ompa ny a nd the S ha reholders . T he program is valid until the ea rlies t of the
conclus ion of the next a nnua l genera l meeting of the C ompa ny or the expira tion of the period within which the next a nnua l general meeting of
the C ompa ny is required by the Articles , or a ny applicable la w of the C a yma n Is la nds to be held or the R epurchas e Ma nda te being revoked
or va ried by a n ordina ry res olution of the S ha reholders in genera l meeting prior to the next a nnua l genera l meeting.
B eyond C ommerce, Inc. B eyond C ommerce Inc. R eports R evenue R es ults for the B eyond C ommerce Inc. revenue res ults for the month of F ebrua ry 2009. T he compa ny reported $3. 3 million in revenues for the month of
(OTC B B : B YOC ) Month of F ebrua ry 2009 ; P rovides R evenue G uida nce F ebrua ry 2009, $2. 3 million for the month of J a nua ry 2009 a nd $1. 07 million for the month of December 2008.
for the Months of April a nd Ma y 2009
T he company is on tra ck for continued s trong growth in revenue in the months of April a nd Ma y 2009.
S ites earc h C orporation (OTC B B : S TP C ) S ites ea rch C orpora tion Announces E xecutive C ha nges On April 20, 2009, J a mes S . Dixon res igned a s C hief E xecutive Officer, P res ident, S ecreta ry a nd T rea s urer of S ites ea rch C orpora tion. As a
co-founder a nd inves tor in S ites ea rch C orpora tion, Mr. Dixon will rema in a Director of the C ompany. T he B oa rd of Directors a ppointed J effrey
S . P eters on, to s erve a s the C hief E xecutive O fficer, S ecreta ry a nd T rea s urer. Mr. P eters on will s erve in thes e pos itions a nd a ls o continue to
s erve a s the cha irma n of the B oa rd. T he company a ls o announced the res igna tion of B a mbi F ra ncis co a s a Director at her reques t. Ms .
F ra ncis co ha s s erved a s a n outs ide Director for the C ompa ny s ince April, 2008.

9. Page 9
E lectronic Arts Inc . (Nas daqG S : E R TS ); T he9 Limited - S pecia l/M&A C all T o dis cus s the highly anticipa ted game E A S P O R T S (T M) F IF A O NLINE 2 will begin its open beta tes t in mainla nd C hina
The9 L imited (Nas daqGS : NC TY)
K ings oft C o. L td. (S E HK : 3888) K ings oft C o. Ltd Mulls a n E quity B uyback K ings oft C o. L td will s eek s ha reholder a pproval to repurchas e own s hares at the Annua l G eneral Meeting to be held on Ma y 25, 2009. Under
the propos ed buyback, the compa ny intends to repurcha s e up to 107,720, 033 s hares . R epurcha s es s ha ll be made on the s tock excha nge.
MOK O.mobi L imited (AS X: MK B ) MOK O .mobi S igns Dea l with B oos t Mobile MOK O. mobi L imited has s igned a n a greement with B oos t Mobile Aus tra lia that includes a revenue s ha re on daily and monthly s ubs cription
cha rges , MMS , priva te media mes s aging and advertis ing. MOK O. mobi is now a vaila ble a cros s a ll mobile networks in Aus tra lia.
NetDragon WebS oft, Inc. (S E HK : 777) NetDragon La unches Open B eta T es ting for T he NetDragon W ebS oft, Inc. announced tha t T he W arlords , the E nglis h vers ion of T ou Ming Zhua ng O nline, entered its open beta tes ting on
W a rlords in North America April 24. T he W arlords is a 2. 5 D MMO R P G ga me jointly crea ted by NetDragon a nd C hina F ilm G roup, s haring the s ame s tory as the film
titled T he W arlords . It exhibits traditiona l C hines e ma rtial arts through complica ted s tories s et in the la te Qing Dyna s ty.
B eyond C ommerc e, Inc. B eyond C ommerce, Inc. Announces the L aunch of B eyond C ommerce, Inc. announced the official launch of LocalAdL ink. com, a low cos t provider of online a dvertis ing for loca l bus ines s es
(OTC B B : B YOC ) Loca lAdlink a cros s the nation. L ocalAdLink is a provider of s ervices that ena ble local bus ines s es to reach loca l cus tomers with targeted Internet
a dvertis ing. T he cus tomer fa cing W eb s ite, L oca lAdLink. com, is a loca l s earch directory and acts as the central hub for the L oca lAdL ink
technology. W hen a cus tomer vis its L ocalAdLink. com, proprietary geo-ta rgeting s oftwa re identifies the cus tomer's loca tion a nd dis plays
relevant loca l bus ines s lis tings . In a ddition, L oca lAdLink has created an Advertis ing Network tha t publis hes loca l bus ines s lis tings on its
owned a nd operated s ites , as well as partner s ites .
Figure 7. Key Developments
Source. Capital IQ