1. SOFTWARE & SERVICES 25 AUGUST 2009
WEB 2.O WEEKLY DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com
CONTENT DISTRIBUTIO N ACROSS PLATFO RMS BECOMING KEY
MY S P AC E B U Y S L E AD IN G F AC E BO O K DE V EL O P E R; F AC E B OO K CR E AT E S T WIT T E R U P DAT E C A PA BIL I T Y
MySpace finally confirmed last week the much-rumoured acquisition of leading Facebook developer iLike. Terms of
the deal are believed to be $13.5 million upfront and $6.5 million in retention payouts over time. W ith this acquisition,
th
MySpace now owns the 14 largest (according to www.appdata.com) Facebook developer – based on the number of
monthly active users. Facebook itself announced that Facebook Page owners would be able to automatically update
their Twitter status with their Facebook updates. Twitter users have long been able to update their Facebook status
with their Tweets. Clearly, the large social network players see the value in allowing their users to cross-pollinate
content across the different platforms.
A much better August than 2008: Total capital raised in August (so far) is $148.1 million on 17 transactions. The
average for August, month-to-date so far, is $8.7 million. This is well ahead of the mere $82.3 million (eight deals,
$10.3 million average) raised in August 2008. However, this is down sequentially from June and July, with one week
to go in the month. Total capital raised in July on 34 transactions was $190.2 million, averaging $5.6 million, and
June was $204.1 million (averaging $5.0 million).
Financing Activity Last Twelve Months
400.0 18.0
16.2
16.0
350.0
14.6
14.0
300.0
12.0
250.0
10.3
9.7
10.0
(US$m)
(US$m)
8.7
200.0
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.6 6.0
5.0
100.0
4.0
50.0
2.0
0.0 0.0
Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09
*May-09 includes $200m FB investment Total Average
A strong price performance week: Most companies in our universe had strong stock price performances over the
past week (for stocks with prices greater than $1) (Figure 6), with 37 companies showing positive returns on the
week – reversing the prior weeks decline. Frogster (XTRA:FRG) led the group with a 19.6% return, while Ynk Korea
(KOSE:A023770) had the worst return, dropping 14.6% in the 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-one public Web 2.0 companies: Our W eb 2.0 universe contains 91 companies, with a combined market cap of
~$65 billion (Figure 1). The median market cap for the group is ~$65 million, with average trailing revenue of ~$160
million (median $57 million). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a
valuation basis, the overall average is 5.0x trailing revenue (median 1.9x) and 11.9x trailing EBITDA (median 9.4x).
Eighteen of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 6/30/2009 AC LZ OT C B B US D United S ta tes 0. 57 15. 8 4. 4 (3.7) -83. 3% 4. 7x - 11
Actoz S oft C o. , Ltd. 3/31/2009 A052790 K OS E KR W S outh K orea 19,150 133. 1 93. 1 20. 2 21. 7% 1. 1x 5. 1x NA
AQ Interactive, Inc. 3/31/2009 3838 TS E JPY J a pan 50,400 29. 0 65. 4 4.1 6.3% - - NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 01 0.6 0. 1 (2.3) NM 15.6x - 3
B igs tring C orp. 6/30/2009 BS GC OT C B B US D United S ta tes 0. 02 1.0 0. 1 (1.5) NM 32.5x - 4
B eta wave C orporation 6/30/2009 B W AV OT C B B US D United S ta tes 0. 08 2.3 9. 4 (12. 6) NM - - 45
B eyond C ommerce, Inc. 6/30/2009 B Y OC OT C B B US D United S ta tes 0. 18 8.3 11. 7 (12. 8) NM 1. 2x - 43
B right T hings plc 9/30/2008 AIM: B G T AIM GBP United K ingdom 0. 01 4.0 0. 3 (1.9) NM 14.6x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 23 19. 5 0. 0 (4.6) NM - - 46
C DC C orp. 6/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 63 278. 7 361.6 25. 1 6.9% 0. 8x 10. 9x 2, 227
C hangyou. com L imited 6/30/2009 C Y OU Na s daqG S US D C hina 38. 08 2,094. 4 241.2 147.2 61. 0% 7. 5x 12. 4x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 02 0.3 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 3/31/2009 G T S M: 3083 GTS M TWD T aiwa n 394 1,009. 5 56. 3 31. 6 56. 0% 16.7x 29. 9x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.4 2. 5 (1.2) -45. 8% 0. 2x - 22
C ornerW orld C orpora tion 4/30/2009 CWR L OT C B B US D United S ta tes 0. 06 5.3 3. 9 NM NM 4. 0x - NA
C yberplex Inc. 6/30/2009 T S X :C X TS X C AD C anada 2 97. 1 91. 0 9.8 10. 8% 0. 8x 7. 8x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 6. 38 148. 1 236.5 31. 1 13. 1% 0. 8x 6. 3x NA
DXN Holdings B hd 5/31/2009 DX N K LS E MY R Ma la ys ia 0. 53 34. 8 76. 5 11. 0 14. 4% 0. 6x 4. 5x NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 6/30/2009 DG LP OT C B B US D United S ta tes 0. 06 4.6 1. 0 (1.4) NM 6. 7x - 7
DigitalT own, Inc. 5/31/2009 DG T W OT C B B US D United S ta tes 1. 40 38. 3 NM (2.5) NM - - 3
Dolphin Digital Media , Inc. 3/31/2009 DP DM OT C B B US D United S ta tes 0. 39 20. 9 0. 8 (3.7) NM 28.3x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 860 50. 2 14. 8 (3.5) -23. 6% 3. 5x - NA
E xtens ions , Inc. 3/31/2009 E XT I OT C P K US D United S ta tes 0. 08 3.6 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 6/30/2009 T S X :F MN TS X C AD United S ta tes 1. 32 64. 5 5. 3 (5.1) -95. 2% 10.6x - NA
F rogs ter Interactive P ictures AG 12/31/2008 FRG XT R A E UR G ermany 16. 75 60. 6 3. 3 (6.3) NM 17.9x - NA
G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 50. 30 233. 0 139.1 24. 6 17. 7% 1. 5x 8. 5x NA
G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 104,700 107. 0 77. 5 19. 0 24. 5% 0. 5x 1. 9x NA
G eoS entric O yj 3/31/2009 G E O 1V HL S E E UR F inland 0. 05 64. 3 6. 1 (15. 7) NM 9. 9x - 108
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 8 1,754. 9 198.5 124.1 62. 5% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 4. 73 257. 9 183.6 NM NM 1. 0x - 751
G ravity C o., Ltd 3/31/2009 GR VY Na s daqG M US D S outh K orea 2. 39 66. 4 46. 1 12. 7 27. 5% - - 469
G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 8,540 2,021. 1 147.5 88. 6 60. 1% 12.9x 21. 5x NA
G ungHo O nline E ntertainment, Inc. 3/31/2009 3765 OS E JPY J a pan 243,000 294. 3 109.0 19. 6 18. 0% 2. 4x 13. 6x NA
HanbitS oft, Inc. 3/31/2009 A047080 K OS E KR W S outh K orea 3,795 67. 0 55. 6 (14. 9) -26. 8% 0. 9x - NA
IAC /InterActiveC orp. 6/30/2009 IAC I Na s daqG S US D United S ta tes 19. 04 2,520. 9 1, 392. 3 52. 7 3.8% 0. 6x 14. 8x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS A. E OT C B B US D C anada 0. 15 10. 5 0. 0 (0.8) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 05 2.4 1. 6 (5.1) NM 0. 9x - NA
J umbuck E nterta inment P ty Ltd. 12/31/2008 AS X :J MB AS X AUD Aus tralia 0. 38 15. 4 15. 0 5.6 37. 2% 0. 7x 1. 8x 72
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 1 83. 4 68. 8 4.0 5.8% - - NA
K ings oft C o. Ltd. 3/31/2009 3888 S E HK HK D C hina 9 1,214. 6 129.1 52. 0 40. 3% 9. 4x 23. 4x 2, 271
Lingo Media C orporation 3/31/2009 T S X V :LM T S XV C AD C anada 1. 12 13. 0 1. 0 (1.6) NM 12.4x - NA
LiveW orld Inc. 6/30/2009 LVW D OT C P K US D United S ta tes 0. 05 1.5 10. 6 (0.1) -1.2% 0. 0x - NA
LookS mart, Ltd. 6/30/2009 L OO K Na s daqG M US D United S ta tes 1. 28 21. 9 56. 8 (4.4) -7.8% - - 90
Magnitude Information S ys tems Inc. 3/31/2009 MAG Y OT C B B US D United S ta tes 0. 01 3.0 0. 1 (3.1) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 614000. 00 1,000. 3 129.3 43. 7 33. 8% 6. 9x 20. 3x NA
Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 310. 00 2,901. 8 1, 950. 0 299.6 15. 4% 1. 8x 11. 6x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tralia 0. 07 5.2 1. 2 (2.5) NM 3. 3x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 50 90. 4 40. 0 0.8 1.9% 2. 5x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 29650. 00 503. 0 199.5 53. 6 26. 8% 2. 5x 9. 2x NA
NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HK D C hina 7 452. 8 87. 0 34. 4 39. 5% 3. 8x 9. 5x 2, 426
Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 42. 28 5,472. 2 472.2 297.3 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 1. 10 116. 9 21. 5 (13. 0) -60. 3% 5. 0x - 237
NeXplore C orporation 6/30/2008 NX P C OT C P K US D United S ta tes 1 33. 5 0. 7 (6.2) NM - - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 32400. 00 42. 4 87. 9 6.5 7.4% - - NA
Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 39. 40 28. 3 81. 9 (40. 9) -50. 0% 0. 3x - NA
O pen T ext C orp. 6/30/2009 OT E X Na s daqG S US D C anada 35. 95 2,018. 6 785.7 205.1 26. 1% 2. 6x 10. 0x NA
O penwave S ys tems Inc. 6/30/2009 OP W V Na s daqG S US D United S ta tes 2. 86 238. 2 191.7 5.3 2.8% 0. 7x 24. 4x NA
P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 39. 01 1,918. 6 255.6 142.1 55. 6% 0. 5x 1. 0x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 67 53. 2 21. 3 2.3 11. 0% 2. 4x 21. 9x NA
Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D United S ta tes 2 19. 1 0. 2 (10. 6) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 05 145. 7 150.9 19. 7 13. 1% 0. 0x 0. 2x NA
S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA Na s daqG S US D C hina 48. 75 3,255. 0 570.3 261.0 45. 8% - - 3, 124
S hutterfly, Inc. 6/30/2009 S FLY Na s daqG S US D United S ta tes 15. 15 385. 7 218.6 27. 3 12. 5% 1. 5x 11. 8x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9310. 00 314. 4 185.5 12. 1 6.5% 1. 7x 26. 1x NA
S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D United S ta tes 0 4.3 3. 5 0.9 27. 0% 0. 8x 2. 9x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0 0.0 0. 1 (0.1) -60. 6% 4. 5x - NA
S ocialwis e, Inc. 6/30/2009 S C LW OT C B B US D United S ta tes 0. 60 26. 6 0. 0 (5.6) NM - - NA
S ohu. com Inc. 6/30/2009 S O HU Na s daqG S US D C hina 64. 52 2,473. 3 485.1 209.6 43. 2% 4. 1x 9. 4x 3, 197
S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 2 44. 2 50. 5 10. 8 21. 3% 0. 8x 3. 9x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 11. 0 0. 1 (2.5) NM - - 7
T encent Holdings Ltd. 6/30/2009 700 S E HK HK D C hina 120 28, 087.7 1, 391. 1 685.6 49. 3% 22.1x 44. 9x 6, 194
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 02 0.5 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 44 215. 3 250.5 85. 4 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 31 70. 7 67. 0 1.9 2.9% 0. 1x 3. 2x 310
T ota l S port O nline AS 3/31/2006 T OS O O T C NO NO K Norway 0. 03 0.1 2. 2 (1.1) -50. 6% 4. 6x - 16
T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D United S ta tes 8. 61 93. 0 216.6 (0.7) -0.3% 0. 5x - 700
Unis erve C ommunica tions C orp. 2/28/2009 T S X V :US S T S XV C AD C anada 0. 05 1.0 24. 3 0.1 0.2% 0. 2x - NA
United O nline Inc. 6/30/2009 UNT D Na s daqG S US D United S ta tes 7. 40 620. 4 949.8 203.2 21. 4% 0. 9x 4. 4x 1, 469
UOMO Media, Inc 1/31/2009 UO MO OT C B B US D C anada 0 12. 9 0. 6 (0.5) -78. 2% 20.8x - NA
V alueC lick Inc. 6/30/2009 V C LK Na s daqG S US D United S ta tes 11 937. 8 563.6 99. 0 17. 6% 1. 4x 8. 1x 1, 189
V OIS , Inc. 3/31/2009 V O IS OT C B B US D United S ta tes 0 5.0 0. 0 (1.1) NM - - 4
W ebzen Inc. 6/30/2009 W ZE N Na s daqG M US D S outh K orea 2. 82 33. 4 22. 3 2.2 9.9% - - NA
W izzard S oftwa re C orporation 6/30/2009 W ZE AME X US D United S ta tes 0. 45 22. 7 5. 3 (4.5) -84. 9% 4. 5x - 110
W orlds . com Inc. 3/31/2009 W DDD OT C B B US D United S ta tes 0. 11 5.7 0. 0 (0.8) NM - - 1
W oozyF ly, Inc. 6/30/2009 W ZY F OT C B B US D United S ta tes 0. 15 2.6 NM NM NM - - NA
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA
XING AG 6/30/2009 O 1B C XT R A E UR G ermany 27. 49 207. 5 57. 5 16. 6 28. 8% 2. 7x 9. 4x 174
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 8,550 103. 3 55. 2 11. 9 21. 6% 2. 0x 9. 4x NA
Y nk K orea Inc. 3/31/2009 A023770 K OS E KR W S outh K orea 4,075 17. 5 10. 6 (0.8) -7.6% - - NA
High 28, 087.7 1,950. 0 685. 6 63. 0% 32.5x 44. 9x 6, 194
Low 0.0 0. 0 -40.9 -98. 9% 0. 0x 0. 2x 1
Average 720.6 160.4 38.1 5.0% 5.0x 11.9x 860
Median 65. 5 56.8 2. 3 13. 1% 1. 9x 9. 4x 376
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 )
Total capital raised in August (so far) is $148.1 million: Online gaming company Turbine, Inc. raised $50 million in
August – the largest transaction in August. Mint, a vertical community site (offering web-based solutions for financial
management), was a distant second raising $14.1 million. Total capital raised in July on 34 transactions was $190.2
million, averaging $5.6 million, and June was $204.1 million (averaging $5.0 million). The average for August, month-to-
date so far, is $8.7 million.
Financing Activity Last Twelve Months
400.0 18.0
16.2
16.0
350.0
14.6
14.0
300.0
12.0
250.0
10.3
9.7
10.0
(US$m)
(US$m)
8.7
200.0
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.6 6.0
5.0
100.0
4.0
50.0
2.0
0.0 0.0
Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09
*May-09 includes $200m FB investment Total Average
Figure 2. Financings, Last Twelve Months
Source. Company reports

4. (US$m)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
People Media
Super Rewards
Turbine
Friends Reunited
Source. Company reports
AdLink Internet Media
Pandora Media
iLike
xoopit
MediaMath
Edo Interactive
Sugar Inc.
Kontera Ltd.
Ning
Tumri
Mint
Boku
RichRelevance
Figure 3. Capital Market Activity, Last Three Months
QuickPlay Media
Grab Networks
Wimba
Traffiq
AdChina
Causes
Goojet SAS
Bill.com
Outspark
ConnectEdu
Acquia, Inc
beeTV
AdMeld Inc.
SBNation
InnoCentive
blueKiwi Software SA
Nokeena
Metaversum
iMemories
Zoosk
Boxee
Bubble Motion
Invodo
Sense Networks
Polyvore
Gather
Taomee
Jambool
MojoPages
Animoto
Quikr India Pvt. Ltd.
GameGround
StyleCaster
Nexage
OPEN Sports network
RingRevenue
TweetDeck
OurStage
Crowdcast
Z2Live
KODA
YuMe
Scoreloop
eRepublik
Busca
ClickFuel
ProtonMedia
Newser LLC
Akademos
Inigral
AdEx Media
Roblox
million. For additional details on financings, see Figures 23 and 24 (at end of note).
Financing & M/A Summary - Last Three Months
GROU.PS
Yapta
OneTXT
iLoop Mobile
my6sense
I Love Rewards
Comunitae
Lat49
Aloqa
Cliqset
ChessCube
Tributes.com
CoTweet
Cognitive Match Limited
TodaCell
Glubble
Cellufun
Picaboo
LiquidPlanner
AdWhirl
Clikthrough
People Capital
BookFresh
MashLogic
iSyndica
Masher Media
Jaxtr
Gigpark
Jul-09
Jun-09
Aug-09
Page 4
for August to $148.1 million. In addition, Friends Reunited was acquired for $42 million and MySpace bought iLike for $20
raising $12.5 million. Of the total 17 transactions thus far, 12 were below $10 million each, bringing the total capital raised
transaction so far in August. Mint was a distant second securing a $14.1 million round. Closely behind was RichRelevance
Turbine, Inc. $50 million raise largest in August: On the capital raise front, Turbine, Inc. raised $50 million, the largest

5. Page 5
Ad Netw ork remains the most active sector in dollars raised: Following recent trends, Ad Networks as a sector saw
the most activity in dollars raised ($126.4 million) and number of transactions (13), followed by the Social Network sector
also with 13 transactions, raising $105.2 million (Figure 4).
Capital Market Activity by Sector - Last Three Months
140.0
120.0
100.0
80.0
(US$m)
126.4
60.0
105.2
40.0 80.0
69.9
64.2 64.0
58.0
20.0
32.6
24.3 24.0 22.3 19.3 19.1
13.0 12.5 12.0 10.7 7.3 5.0 5.0 4.1
0.0 3.2 3.0 1.0 1.0 0.5 0.5 0.0
Comment/Reputation
Mobile Payment
Communities
Online Dating
Gaming
Online Calendar
Mobile
Enterprise
Media
Microblog
Online Lending
Collaboration
Online Learning
Publishing
Music
Infrastructure
Blog
Search
Classified
Mobile Ad
SMS/Voice
Social Networks
Virtual Goods
Virtual World
Video
Crowdsourced
Ad Network
Analytics
Vertical
Content
# companies
13 13 1 5 7 10 3 5 5 2 7 3 4 1 1 2 2 1 1 1 1 1 2 1 1 1 1 0
Figure 4. Capital Market Activity, by Sector, Last Three Months
Source. Company reports

6. Page 6
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 continue to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored
the performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recently
had a much stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance
140
120
100
80
60
40
20
0
8/25/2008
9/8/2008
9/22/2008
10/6/2008
10/20/2008
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
2/9/2009
2/23/2009
3/9/2009
3/23/2009
4/6/2009
4/20/2009
5/4/2009
5/18/2009
6/1/2009
6/15/2009
6/29/2009
7/13/2009
7/27/2009
8/10/2009
8/24/2009
^COMP - Share Pricing Index: Web 2.0 (Market Cap)
Figure 5. Web 2.0 Price Performance
Source. Capital IQ

7. Page 7
A strong price performance week: Most companies in our universe had strong stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 37 companies showing positive returns on the week –
reversing the prior weeks decline. Frogster (XTRA:FRG) led the group with a 19.6% return, while Ynk Korea
(KOSE:A023770) had the worst return, dropping 14.6% in the week.
1 Week P rice P erformance
Frogs ter Interactiv e Pictures A G 19.6%
G ravity Co., Ltd 18.9%
Northgate Technologies Limited 14.9%
Lingo Media Corporation 12.0%
NetDragon WebS of t, Inc. 12.0%
Fluid Mus ic Canada , Inc. 10.0%
Perfect World Co., Ltd. 7.9%
G ree, Inc. 7.7%
DigitalTow n, Inc. 7.7%
S ohu.com Inc. 7.7%
Modern Times G roup Mtg A B 7.6%
V alueClick Inc. 7.5%
S handa Interactive Entertainment Ltd. 7.4%
G igaMedia Ltd. 7.3%
Quepas a Corp. 7.1%
LookS mart, Ltd. 6.7%
My riad Group A G 5.6%
Neteas e.com Inc. 5.1%
Eolith Co. Ltd. 4.9%
DA DA S pA 4.8%
PNI Digital Media Inc. 4.4%
Tencent Holdings Ltd. 4.3%
Webz en Inc. 3.7%
CDC Corp. 3.5%
IA C/InterA ctiveCorp. 3.5%
K ings of t Co. Ltd. 2.7%
S hutterf ly , Inc. 2.7%
TheS treet.com, Inc. 2.7%
Openw ave S y s tems Inc. 2.1%
Changy ou.com Limited 2.0%
The9 Limited 1.9%
Mix i, Inc. 1.7%
G ameOn Co Ltd. 1.7%
A Q Interactiv e, Inc. 1.6%
S park Netw orks , Inc. 1.3%
United Online Inc. 1.2%
Giant Interactive G roup, Inc. 0.9%
NeuLion Incorporated 0.0%
XING A G 0.0%
Ngi G roup Inc. -1.2%
Cy berplex Inc. -3.0%
Y edangOnline Corp. -3.6%
Tree.Com, Inc. -3.7%
Chines e Gamer International -4.4%
S K Communications Co., Ltd. -5.5%
Open Tex t Corp. -5.8%
NEOWIZ Games Corporation -6.2%
HanbitS of t, Inc. -8.0%
A ctoz S of t Co., Ltd. -10.1%
Gamania Digital Entertainment Co., -11.3%
Y nk K orea Inc. -14.6%
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
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
United Online Inc. (Nas daqGS : UNTD) United O nline Inc. Announces E xecutive P romotions O n Augus t 14, 2009, F rederic A. R anda ll, J r. , who ha s s erved a s the E xecutive V ice P res ident, G enera l C ouns el and S ecreta ry of United
O nline Inc. , wa s elected to the pos ition of E xecutive V ice P res ident and C hief S trategy Officer, a newly-created executive officer pos ition of
the company, effective Augus t 15, 2009. In his new role, Mr. R a nda ll will focus on matters related to s trategic planning and a cquis itions .
C harles B . Ammann, who ha s s erved as the compa ny's S enior V ice P res ident, Deputy G enera l C ouns el a nd As s is tant S ecretary, wa s
promoted to the pos ition of E xecutive V ice P res ident, G enera l C ouns el a nd S ecreta ry of the compa ny, effective Augus t 15, 2009.
S NM G lobal Holdings (OTC PK : S NMN) S NM G lobal S eeking Acquis itions It is learnt that, S NM G loba l Holdings continues its ques t to s ecure funding to pa y down debt a nd continue with the development of
infras tructure a nd s eeking a cquis itions . T he compa ny is a ls o exploring expa ns ion into other indus tries tha t will complement as well as
divers ify their Media –E ntertainment/S ports content development, delivery a nd dis tribution model.
DigitalP os t Interac tive, Inc . Digita lP os t Interactive Inc. R eports E a rnings R es ults for Digita lP os t Interactive Inc. reported earnings res ults for the s econd quarter a nd s ix months ended J une 30, 2009. T ota l revenue for s econd-
(OTC B B : DG L P ) the S econd Qua rter a nd S ix Months E nded J une 30, qua rter 2009 ros e more tha n 161% to $376, 400, from $144,200 in s econd-quarter 2008. T he increa s e was driven by more tha n 211% growth
2009 in s ubs criptions revenue, which was due to the compa ny's pa rtners hip with K iddie K andids , a nd more than 126% growth in profes s iona l
s ervices revenue. C a s h us ed in opera tions improved s ignifica ntly to $2, 700 for s econd-qua rter 2009 a s compared to $460, 800 for the s a me
period la s t yea r. T he improvement reflects the compa ny's ongoing effort to s trea mline opera tions while driving more revenue through the
growth of recurring s ubs criptions a nd through the profes s iona l s ervices contracts that have been a warded. Net los s for s econd-quarter 2009
narrowed to $424,200 from a net los s of $1. 5 million in s econd-qua rter 2008.
F or the firs t s ix months of 2009, net cas h us ed by operating activities declined to $64, 900 from $873,000 for the firs t s ix months of 2008.
T ota l revenue was $687, 400 compared to $195, 500 in the precious yea r period.
C DC C orp. (Nas daqG S : C HIN.A) C DC C orp. R eports Una udited C ons olidated E a rnings C DC C orp. reported una udited cons olida ted ea rnings res ults for the s econd quarter a nd s ix months ended J une 30, 2009. F or the quarter,
R es ults for the S econd Q ua rter and S ix Months E nded the company reported net income a ttributa ble to controlling interes t was $3, 249,000 or $0. 03 ba s ic a nd diluted ea rnings per s ha re on
J une 30, 2009 revenue of $81, 654, 000 compared to net los s attributable to controlling interes t of $9,996, 000 or $0.09 ba s ic and diluted los s per s hare on
revenue of $111,040, 000 for the s a me period a yea r a go. Income from continuing opera tions was $3,409,000 or $0. 03 ba s ic a nd diluted
earnings per s hare from continuing opera tions compa red to los s from continuing opera tions of $7, 450, 000 or $0. 07 bas ic a nd diluted los s per
s ha re from continuing operations for the s a me period a year a go. Income before income ta xes was $4,662,000 compa red to los s before
income ta xes of $6,978,000 for the s ame period a yea r ago. Adjus ted E B IT DA from continuing opera tions was $12, 477, 000 compared to
$9, 973, 000 for the s a me period a year a go. Net ca s h provided by operating a ctivities wa s $11,168,000 and ca pital s pend in purcha s e of
property, plant & equipment was $391,000 compared to net ca s h provided by opera ting a ctivities of $5,573,000 and ca pita l s pend in purcha s e
Myriad G roup AG (S WX: MYR N) Myria d G roup AG S igns C ontra ct with T -Mobile C zech Myria d G roup AG announced that it ha s been s elected by T -Mobile C zech R epublic to provide the US S D platform for its cus tomer ca re
R epublic to P rovide the US S D P latform s ervice. T he s olution exploits the s trengths of the Myriad S ervices P la tform to a llow the operator to offer US S D as a s imple trigger for
s ubs criber s elf s ervice, s o helping to reduce cus tomer churn. T he s olution is a s elf-s ervice s ys tem tha t a llows cus tomers to quickly acces s
s ervices and informa tion on their mobile hands et and cha nge their s ettings . T he s olution improves cus tomer s a tis fa ction, reducing the need
for cus tomer s ervice reques ts a nd can be upgra ded to s upport a dva nced s elf s ervices us ing gra phical interfa ces in the future. F or T -Mobile
the us e of US S D provides a n intuitive cha nnel which a llows a ny cus tomer to immediately s elf-provis ion cus tomer ca re.
Gamania Digital E ntertainment C o., G a ma nia Digita l E nterta inment C o. Ltd. R eports Audited G ama nia Digita l E ntertainment C o. L td. reported a udited cons olida ted fina ncial res ults for the firs t s ix months ended J une 30, 2009. F or the
L td. (GTS M: 6180) C ons olida ted F ina ncia l R es ults for the F irs t S ix Months qua rter, the compa ny reported cons olidated operating revenue of T W D 2, 671, 670, 000, opera ting income of T W D 384, 453, 000, net income of
E nded J une 30, 2009 T W D 291, 943, 000 a nd earnings per s ha re (E P S ) of T W D 2. 00. B enefited from the product divers ification s tra tegy, the operating revenue
s trongly increa s ed 42. 37% yea r-over-year for the firs t ha lf year 2009. T he operating revenue of the parent company a ls o performed quite well
a nd grew 24.66% yea r-over-year due to the contribution from three flags hip titles .
L ingo Media C orporation (TS XV: L M) Lingo Media C orporation, Annua l G enera l Meeting, Aug L ingo Media C orpora tion, Annual G eneral Meeting, Aug 18, 2009, a t 11: 00 E a s tern Da ylight. L ocation: W eirF oulds L LP , 130 K ing S treet
18, 2009 W es t, S uite 1500, T oronto, ON M5X 1J 5, Onta rio, C anada. Agenda : T o receive the audited financia l s tatements for the fis ca l year ended
December 31, 2008 and the report of the Auditors thereon the compa ny; to elect the directors of the company; to appoint C ollins B a rrow
T oronto L LP as auditors for the ens uing year a nd to a uthorize the directors to fix their remunera tion; to a pprove a n ordinary res olution of
dis interes ted s hareholders a uthorizing the a mendment of the company's s tock incentive pla n to increas e the ma ximum number of s hares
is s uable under the P la n; and to trans a ct s uch other bus ines s a s may properly come before the Meeting
.
Giant Interactive G roup, Inc . G ia nt Intera ctive G roup Inc. R eports Una udited G iant Interactive G roup Inc. reported unaudited cons olidated financia l res ults for the s econd quarter ended J une 30, 2009. F or the qua rter,
(NYS E : GA) C ons olida ted F ina ncia l R es ults for the S econd Q ua rter the company reported net revenue was R MB 364.1 million compa red to R MB 373. 5 million in the firs t qua rter 2009 and R MB 504. 8 million in
E nded J une 30, 2009 ; P rovides R evenue G uidance for the s econd qua rter 2008. Net income a ttributa ble to the company's s hareholders wa s R MB 231. 9 million compared to R MB 231.9 million in
the T hird Q ua rter 2009 the firs t qua rter 2009 and R MB 350. 6 million in the s econd qua rter 2008. T he year-over-year decrea s e is attributable to the decreas e in net
revenue. Non-G AAP net income a ttributa ble to the compa ny's s hareholders excluding non-ca s h s ha re-ba s ed compens ation was R MB 239. 8
million compared to R MB 240.2 million in the firs t qua rter 2009 a nd R MB 362. 5 million in the s econd qua rter 2008. B as ic a nd diluted non-
G AAP ea rnings excluding non-cas h s ha re-ba s ed compens ation per ADS were R MB 1.06 and R MB 1. 03, res pectively, compa red to ba s ic
a nd diluted non-G AAP ea rnings per ADS of R MB 1. 50 and R MB 1. 45, res pectively, for the s econd quarter 2008, and ba s ic and diluted non-
G AAP ea rnings per ADS of R MB 1.06 and R MB 1. 03, res pectively, for the firs t qua rter 2009. T he compa ny reported income from operations o
IAC /InterActiveC orp. (Nas daqGS : IAC I) IAC /InterActiveC orp. Appoints L ouis C as tle a s C E O IAC /InterActiveC orp. a nnounced that interactive entertainment veteran and lifetime a chievement award recipient L ouis C as tle ha s joined
IAC 's Ins ta ntAction Holdings as its new C E O. Under C as tle's lea ders hip, Ins tantAction will purs ue a n expa nded bus ines s s trategy that will
build upon the vis ion of true, frictionles s web publis hing, and will more effectively connect developers directly to cons umers while crea ting a ll
new IP a cros s multiple ga ming pla tforms a nd genres . C as tle, a 26-yea r gaming indus try veteran, joins the online ga ming leader to help
s pearhea d the tra ns ition of ma ins tream video ga mes to the web. C as tle s ucceeds former C E O J os h W illiams who will as s ume the role of
fellow and chief technologis t at Ins tantAction.
UOMO Media, Inc (OTC B B : UOMO) UO MO Media, Inc. R eports Audited R evenue R es ults for UOMO Media, Inc. reported a udited revenue res ults for the year ended April 30, 2009. F or the period, the company reported revenue of
the Y ea r E nded April 30, 2009 $858, 137 s etting a record a s the highes t in the company's his tory with a corres ponding growth in tota l a s s ets .

9. Page 9
S oc ialwis e, Inc . (OTC B B : S C L W) S ocia lwis e Inc. Appoints Mark Miller to the C ompany's S ocia lwis e Inc. a nnounced the appointment of Ma rk Miller, former S enior V ice P res ident of DC S hoes and action s ports indus try vetera n to
B oard of Advis ors the company's B oa rd of Advis ors . In this role, he will us e his extens ive network of online mercha nts , Actions S ports athletes , a nd indus try
connections to pos ition B illMyP arents as a leading youth payment s ys tem. He will be in charge of s ecuring pa rtners hips with leading online
a ction s ports brands a nd reta ilers a s well as building us er ba s e of young cons umers a nd their pa rents . Ma rk Miller has over twenty-five years
experience working in Action S ports and youth culture bus ines s es . As a s enior executive, Ma rk focus ed on developing and executing go-to-
market s tra tegies for cons umer goods compa nies . Mos t recently, he s erved as the S enior V ice P res ident a nd G eneral Ma nager of DC
S hoes , a s ubs idia ry of Q uiks ilver Inc., where he ma na ged the America s ' divis ion including s trategic pa rtners hips with both reta il a nd online
dis tribution channels .
S NAP Interactive, Inc . (OTC B B : S TVI) S NAP Intera ctive Inc. Announces Una udited S NAP Intera ctive Inc. announced una udited cons olida ted ea rnings res ults for the s econd quarter a nd s ix months ended J une 30, 2009. F or
C ons olida ted E arnings R es ults for the S econd Q ua rter the quarter, the compa ny's revenue was $784,242, a s compa red to $533, 257 for the three months ended J une 30, 2008, a 47% increa s e.
and S ix Months E nded J une 30, 2009 Net income for the quarter was $46,430 as compared to net income of $144, 862 or $0.01 per diluted s hare for the three months ended J une
30, 2008, a 68% decrea s e. Income from opera tions wa s $131,035 compa red with $145,133 for the s ame period a yea r ago. Income before
provis ion for income ta xes was $137,985 compa red with $144,862 for the s ame period a yea r ago.
F or the s ix months , the compa ny's revenue was $1,553,214, a s compa red to $1, 053, 159 for the s ix months ended J une 30, 2008, a 47%
increa s e. T he increa s e in revenue wa s prima rily due to higher enga gement on its a pplica tions in 2009 compa red to the s a me time period in
2008 as well as the introduction of premium fea tures to its a pplications to genera te additional revenue. Net income for the period wa s
$112, 902 or $0. 01 per diluted s hare a s compa red to net income of $335, 371 or $0. 03 per diluted s hare for the s ix months ended J une 30, 200
Open Text C orp. (Nas daqGS : OTE X) Open T ext C orp. P rovides E a rnings G uida nce for the O pen T ext C orp. provided ea rnings guida nce for the yea r of 2010. F or the year, the company expects to s ee s ingle-digit growth for revenues ,
Y ear of 2010 double-digit growth for a djus ted ea rnings .
K ings oft C o. L td. (S E HK : 3888) K ings oft C o. Ltd. Announces to R elea s e O pen B eta T es t K ings oft C o. L td. a nnounced that it would releas e the date for the open beta tes t of J X 3 O nline at a pres s conference to be held on Augus t
of J X3 O nline 24, 2009. T he compa ny will a ls o la unch open beta tes ts of J X 2 O nline W ai Zhuan, a s is ter ga me to J X 2 O nline, and C hun Qiu W a i Zhua n,
a nother s is ter game to C Q Online, on Augus t 20 a nd Augus t 21 res pectively. S o will the firs t expans ion pack of T he F irs t Myth 2 on Augus t
27. T hree more online games are under proprieta ry development a nd will meet gamers by the end of 2009, including Y ue Y ing C huan S huo
a nd Du G u J iu J ia n. Y ue Y ing C hua n S huo is being developed by Zhuhai Xis ha nju S oftwa re C o. L td. (S ea s on S tudio) under K ings oft.
IB 3 Networks , Inc . (OTC B B : IB NW) IB 3 Networks Inc. will C hange its T icker to IB NW E from E ffective Augus t 24, 2009, IB 3 Networks Inc. will change its O T C B B s tock ticker s ymbol to IB NW E from IB NW .
IB NW
B eyond C ommerc e, Inc. B eyond C ommerce, Inc. has filed a S helf R egis tration in B eyond C ommerce, Inc. ha s filed a S helf R egis tra tion in the a mount of $15.00 million.
(OTC B B : B YOC ) the amount of $15. 00 million.
Moggle, Inc Moggle, Inc ha s filed a S helf R egis tration in the amount Moggle, Inc has filed a S helf R egis tra tion in the amount of $12. 00 million.
of $12.00 million.
ValueC lick Inc . (Nas daqG S : VC L K ) B a rra ck, R odos & B acine Announces S umma ry Notice of B a rrack, R odos & B a cine a nnounced that purs ua nt to R ule 23 of the F ederal R ules of C ivil P rocedure and an Order of the C ourt, tha t a
P ropos ed V alueC lick Inc. C la s s Action S ettlement a nd s ettlement for $10 million in ca s h ha s been propos ed in the a bove-ca ptioned certified clas s action a ga ins t V alueC lick Inc. A hea ring will be
S ettlement Hea ring held before the Honorable Dea n D. P regers on, a t the United S ta tes Dis trict C ourt for the C entral Dis trict of C alifornia , W es tern Divis ion, 312
North S pring S treet, L os Angeles , C a lifornia 90012, at 10:00 a. m., on November 9, 2009 to determine whether the propos ed s ettlement
s hould be a pproved by the C ourt a s fair, rea s ona ble, a nd a dequate, and to cons ider the a pplica tion of P laintiffs ' C ouns el for attorneys ' fees
a nd reimburs ement of expens es .
Wizzard S oftware C orporation W izza rd Media Announces T ii P odcas t App Hits T op 100 W izzard S oftware C orporation a nnounced the a va ilability of the T ii P odca s t iP hone App currently ra nked number 58 on the 100 T op P a id
(AME X: WZE ) Lis t in iT unes App S tore Apps lis t in the P roductivity category after only three days in the iT unes App S tore. T he new App, priced a t $1. 99, is the companion App for
the T oday in iP hone podcas t. In a ddition to providing direct s trea ming acces s to the entire back catalog of T oday in iP hone podcas t
epis odes , it a ls o offers exclus ive bonus content with iP hone T ips , T ricks a nd T utoria ls via audio a nd video footage. T he company is offering
cus tomized podca s t compa nion Apps to the 11 600 podca s ts on the W izza rd Network as well as other interes ted top podcas ts as a new
mea ns to monetize the content they crea te while offering their a udience members an enha nced viewing experience.
Open Text C orp. (Nas daqGS : OTE X) Open T ext C orp. Announces Una udited C ons olidated O pen T ext C orp. announced una udited cons olida ted earnings res ults for the fourth qua rter a nd full year ended J une 30, 2009. F or the
E a rnings R es ults for the F ourth Quarter a nd F ull Y ear qua rter, the compa ny reported income from opera tions of $34, 395, 000 a ga ins t $29,293,000 a yea r a go. Income before income ta xes was
E nded J une 30, 2009 $28,508, 000 agains t $39, 875, 000 a year ago. Net income was $19, 481, 000 or $0.36 per diluted s hare on tota l revenues of $203,356,000
a ga ins t $27,254,000 or $0. 51 per diluted s ha re on tota l revenues of $200, 269,000 a year ago. Net cas h provided by operating activities wa s
$38,627, 000 agains t $44, 611, 000 a year ago. Acquis ition of capita l as s ets was a mounted to $5, 842,000 a ga ins t $1, 481,000 a year ago. Non-
G AAP ba s ed a djus ted net income wa s $39.2 million or $0.73 per diluted s ha re agains t $33. 3 million or $0. 63 per diluted s hare a year a go.
Non-G AAP net income wa s $41.6 million or $0. 78 per diluted s ha re on non-G AAP revenues of $203. 9 million.
F or the year, the company reported income from opera tions of $97, 584, 000 a ga ins t $100, 379, 000 a year a go. Income before income ta xes
wa s $80,777,000 agains t $76, 497, 000 a year a go. Net income was $56,938, 000 or $1.07 per diluted s hare on tota l revenues of $785,665,000
DigitalFX International, Inc . Digita lF X International Announces E xecutive C ha nges O n Augus t 17, 2009, Digita lF X International, Inc. 's C hief Operating Officer, Allen La ngford, res igned his pos ition with the company for
(OTC B B : DG FX) pers ona l reas ons a nd the company a ppointed Mr. J ohn P retto, a ge 46, as its C hief O pera ting O fficer, pending a pprova l by the company's
B oard of Directors . Mr. P retto has over twenty years of bus ines s a nd Informa tion technology ma nagement experience including s erving on
the board of directors of other publicly tra ded corpora tions . T he company's B oard of Directors a pproved Mr. P retto's a ppointment as the
C hief O pera ting O fficer on Augus t 20, 2009, effective a s of Augus t 17, 2009.
Figure 7. Key Developments
Source. Capital IQ