1. Channa Luma, The Weiser Group for NVCA, 302-368-2345, cluma@weisergroup.com
Matthew Toole, Thomson Financial, 646-822-7560, matthew.toole@thomson.com
VENTURE-BACKED IPOs MAKE GAINS; ACQUISITION ACTIVITY DECLINES IN Q1 2007
Information Technology Companies Drive Exit Activity
New York, NY- April 2, 2007 – Seventeen venture-backed companies raised $2.09 billion through initial
public offerings (IPOs) on US exchanges in the first quarter of 2007, according to the Exit Poll report by
Thomson Financial and the National Venture Capital Association (NVCA). This volume represents a 70
percent increase from the first quarter of 2006 when ten venture-backed companies went public. Venture-
backed merger and acquisition activity declined significantly with only 62 transactions completed this
quarter compared to 104 in the first quarter of 2006. However, the average disclosed deal size for the first
quarter of 2007 was $161.2 million, one of the highest quarters in the last five years..
“This quarter may mark a subtle shift in the exit mix for venture capital,” said Mark Heesen, president of
the National Venture Capital Association. “There appears to be a crack in the IPO window which changes
the psychology of the market. In recent quarters, an IPO has not been a viable option for most of these
companies. However, the increase in venture-backed IPO registrations is an encouraging sign. At the same
time, large corporations have slowed their acquisition pace, likely because of stock market uncertainty and
earnings pressure. This all means fewer, but higher quality acquisitions as evidenced by the numbers.quot;
Venture-Backed Liquidity Events, 2001-2007ytd
*Total
M&A Disclosed *Average Total Average
Deals with M&A M&A Offer IPO Offer
Total
Disclosed Deal Size Amount Amount
M&A Value **Number
Quarter/Year Deals Values ($M) ($M) of IPOs ($M) ($M)
2001 353 165 16,798.9 101.8 41 3,489.9 85.1
2002 318 152 7,916.4 52.1 22 2,109.1 95.9
2003 291 123 7,726.1 62.8 29 2,022.7 69.8
80 45 3,921.0 87.1 13 2,721.1 209.3
2004-1
89 48 4,514.6 94.1 29 2,077.8 71.7
2004-2
86 47 4,142.8 88.2 24 3,225.6 134.4
2004-3
84 46 2,862.2 62.2 27 2,990.4 110.8
2004-4
2004 339 186 15,440.6 83.0 93 11,014.9 118.4
82 46 4,364.9 94.9 10 720.7 72.1
2005-1
80 36 4,791.0 133.1 10 714.1 71.4
2005-2
98 47 4,374.8 93.1 19 1,458.1 76.7
2005-3
87 39 2,563.7 65.7 17 1,568.1 92.2
2005-4
2005 347 168 16,094.4 95.8 56 4,461.0 79.7
104 48 5,384.4 112.2 10 540.8 54.1
2006-1
92 37 3,747.6 101.3 19 2,011.0 105.8
2006-2
87 39 3,726.3 95.6 8 934.2 116.8
2006-3

2. 57 23 3,801.8 165.3 20 1,631.1 81.6
2006-4
2006 340 147 16,660.0 113.3 57 5,117.1 89.8
62 20 3,223.3 161.2 17 2,091.9 123.1
2007-1
2007 62 20 3,223.3 161.2 17 2,091.9 123.1
Thomson Financial & National Venture Capital Association
*Only accounts for deals with disclosed values
**Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile.
.
IPO Activity Overview
Nine IPOs in the technology sector comprised nearly 67 percent of the total amount raised in the U.S.
markets during the first quarter of 2007, bolstered by the $600 million offering from Washington-based
Clearwire Corporation – the largest venture-backed IPO since October 2004. The wireless internet service
provider listed 12 million shares on NASDAQ for $25 per share via bookrunners Merrill Lynch, Morgan
Stanley and JP Morgan. Venture investors in Clearwire include CIC Partners, Convergent Investors, The
Edgewater Funds, Goldman Sachs, Intel Capital, Liberty Associated Partners and Pharos Investment
Group.
Activity in the Life Sciences sector saw seven IPOs come to market raising $600.4 million during the first
quarter. The largest IPO in the sector was the $288 million offering from Accuray, a California-based
surgical equipment manufacturer. Led by JP Morgan and UBS, the 16 million share listing was priced at
$18 per share, and has increased nearly 27% over its initial offer price. Venture investors in Accuray
include Marubeni Corporation and several undisclosed funds.
Industry Breakdown
Q1 2007
*Number
Total
of
Venture- Venture-
Backed Backed
Offering
IPO's in
Industry the U.S. Size ($M)
Internet Specific 4 942.1
Communications/Media 2 227.1
Computer Software 1 86.6
Semiconductors 2 135.7
Technology TOTAL 9 1,391.5
Medical/Health 5 480.4
Biotechnology 2 120
Life
Sciences TOTAL 7 600.4
Other Products 1 100.0
Other TOTAL 1 100.0
TOTAL 17 2091.9
*Includes all companies with at least one U.S. VC
investor that trade on U.S. exchanges, regardless of
domicile
Of the venture backed companies that went public during the rolling twelve month period, 70% were
trading at or above their offering price as of March 29, 2007.

3. Forty-four venture-backed companies have filed for an initial public offering with the SEC since 2005 and
are currently “in registration”. The venture-backed pipeline totals compare very favorably to the 24
companies in registration at the end of the first quarter of 2006.
“The mostly positive aftermarket performance of venture-backed offerings and the strong IPO pipeline over
the past twelve months indicates the quality of the companies going through the exit process”, said Alex
Tan, Global Private Equity Research Manager at Thomson Financial.
In addition to the US market activity, Norwegian pharmaceutical concern, Algeta ASA listed on the Oslo
Stock Exchange and was the only US-backed venture-backed company to go public on a non-US exchange
during the first quarter.
Merger and Acquisition Overview
Although up slightly from fourth quarter of 2006, the first quarter venture-backed M&A volume of 62
transactions fell sharply from last year at this time. However, the average disclosed deal size was $161.2
million, the second highest quarterly average since 2001.
The Technology sector dominated the venture-backed M&A landscape, with 51 deals and a disclosed value
of nearly $2.0 billion. Within Technology, the Computer Software and Internet Specific sectors each saw
18 transactions. The Internet Specific sector reached $1.1 billion in disclosed deal value – 54 percent of the
overall value within technology. Four Life Sciences companies were acquired, with a disclosed deal value
of $1.0 billion.
Venture-Backed M&A Industry
Breakdown
Q1 2007
Number of Total
Venture- Disclosed
Number
of Backed Venture-
M&A Backed
Venture-
deals with Deal
Backed
a disclosed Value
M&A
Industry deals value ($M)
Communications/Media 8 5 173.4
Internet Specific 18 4 1052.9
Computer Software 18 5 460
Semiconductors 3 1 270.0
Computer Hardware 4 0 0.0
Technology TOTAL 51 15 1,956.3
Medical/Health 3 1 525.0
Biotechnology 1 1 480.0
Life
Sciences TOTAL 4 2 1005.0
Consumer Related 2 0 0.0
Industrial/Energy 1 1 90.0
Other Products 4 2 172.0
Other TOTAL 7 3 262.0
TOTAL 62 20 3,223.3
Source: Thomson Financial & National Venture Capital Association

4. The largest disclosed deal of the quarter was the $564 million acquisition of foreign-exchange portal
operator Currenex Inc by State Street Corporation in March. The second largest deal was the $525 million
acquisition of surgical equipment developer St. Francis Medical Technologies by Kyphon Inc.
Deals bringing in the top returns, those with disclosed values greater than 4x the venture investment,
accounted for 50% of the total compared to 65% last quarter. Conversely, those deals returning less than
the amount invested accounted for 25% of the quarter’s total, down from 28% of the total last quarter.
Analysis of Transaction Values versus Amount
Invested
Relationship between transaction value and
M&A**
investment
Deals where transaction value is less than total
5
venture investment
Deals where transaction value is 1-4x total
5
venture investment
Deals where transaction value is 4x-10x total
5
venture investment
Deals where transaction value is greater than
5
10x venture investment
Total Disclosed Deals 20
Source: Thomson Financial &
National Venture Capital Association
** Disclosed deals that did not have a disclosed total
investment amount are not included.
About Thomson Financial
Thomson Financial, with 2006 revenues of US$2 billion, is a provider of information and technology
solutions to the worldwide financial community. Through the widest range of products and services in the
industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more
productive and achieve superior results. Thomson Financial is part of The Thomson Corporation
(www.thomson.com), a global leader in providing essential electronic workflow solutions to business and
professional customers. With operational headquarters in Stamford, Conn., Thomson provides value-added
information, software tools and applications to professionals in the fields of law, tax, accounting, financial
services, scientific research and healthcare. The Corporation's common shares are listed on the New York
and Toronto stock exchanges (NYSE: TOC; TSX: TOC).
The National Venture Capital Association (NVCA) represents approximately 480 venture capital and
private equity firms. NVCA's mission is to foster greater understanding of the importance of venture capital
to the U.S. economy, and support entrepreneurial activity and innovation. According to a 2006 Global
Insight study, venture-backed companies accounted for 10 million jobs and $2.1 trillion in revenue in the
United States in 2005. The NVCA represents the public policy interests of the venture capital community,
strives to maintain high professional standards, provides reliable industry data, sponsors professional
development, and facilitates interaction among its members. For more information about the NVCA, please
visit www.nvca.org.