Siemer & Associates Mobile Report 3rd Qtr 2011

Embedded Specialized Accomplished

Q3 2011

Siemer Mobile Report

2 Q3 2011Siemer Mobile Report

Table of ContentsSection I Market Environment

Section II Mobile Growth Story

Section III Mobile Entertainment

Section IV Mobile Commerce

Section V Trends to Watch

Appendix Public and Transaction Comparables


Consumers desire to be constantly “connected” is catalyzing the transition from traditional computer segments (e.g. desktops, notebooks) to smartphones and tablets− Social networking and mobile video are key drivers− 2011 will be the first year where smartphone shipments exceed computer shipments

The mobile commerce industry or “mCommerce” continues its high growth trajectory as traditional retailers and startups leverage consumers’ desire for immediate real-time transactions− Growth in mCommerce provides huge upside potential for the mobile advertising industry as consumers are

now constantly connected with mobile internet access

Mobile media, including video and gaming, is rapidly growing− As mobile personalization (e.g. ringtones, wallpapers, etc.), the largest subsector, nears maturity, mobile

entertainment is rapidly emerging as the largest expanding market

Google’s acquisition of Motorola Mobility will further engrain Android in the mobile marketAT&T’s acquisition of T-Mobile will have a large impact on the U.S. mobile ecosystem− Acquisition brings the U.S. mobile market in-line with other developed markets via consolidation down to 3

dominant mobile operators− Market power and aggregate revenue will concentrate in the top two, leaving Sprint a distant third

Source: Siemer Proprietary Research, Wall Street Research, Chetansharma.com

Overview


Series A Preferred Stock

mDialog Receives Series A Funding from BlackBerry Partners FundThe mDialog platform is a real-time, Video as a Service (VaaS)solution that provides video publishers and advertisers a suite ofin-stream ad services for mobile and OTT devicesRetained as exclusive financial advisor due to S&A’s strongstrategic and venture capital relationships and industry knowledgeexpertiseS&A worked closely with mDialog to evaluate all of its optionsS&A helped mDialog’s CEO with positioning the Company anddetermining the correct structure and valuation

A “Win-Win” Situation:

S&A advised and guided mDialog to the next evolution in itscorporate lifemDialog selected a financial partner with a shared vision of itsmission and growth prospects

mDialog Case Study

Siemer & Associates acted as the exclusive financial advisor to mDialog


has been acquired by

GoTV Networks Sold to PhunwareGoTV Networks, the industry’s largest mobile media network,creates and syndicates original content to mobile. GoTV enablesmedia owners and brands to deliver compelling, personalized,highly engaged content experiences through feature-rich smartapplications distributed to the widest audience possible.S&A reached out to many small and large strategic acquirers,including “out-of-the-box” targetsPhunware’s acquisition of GoTV Networks combined two majorapp development studios, creating a mobile powerhouse spanningvideo production, creation and distribution


S&A worked with GoTV Networks to complete a transactionwithin a specific timeframe that met the needs of its investorsPhunware is now one of the largest app development studios

GoTV Networks Case Study

Siemer & Associates acted as the exclusive financial advisor to GoTV Networks


Has merged with

Pringo Merges with MobileBitsPringo developed a leading enterprise-class platform that providesportals, content management systems, social collaboration anduser management tools within one open-source package.Pringo’s comprehensive offering provides large enterprise clientswith the ability to quickly increase site functionality whilesimultaneously expanding the breadth of offerings -- which in turnresults in higher levels of interaction and engagement amongenterprise site users.MobileBits merger with Pringo will significantly elevate MobileBits’ability to deliver a full range of online content, social collaborationand interactive data solutions ̶ all enhancing mobile and webresults, allowing for a more targeted advertising platform.


S&A worked with Pringo to complete a transaction that met itsdesire to continue growing its platform as it enters a new phaseof its business developmentThe combined company platform is now more robust, convergingusers desire to have a mobile and online presence at once

Pringo Case Study

Siemer & Associates acted as the exclusive financial advisor to Pringo


Mobile 1.0

Handset manufacturersOperators

SMS / MMS

Ringtones

Wallpaper

Billing model voice + SMS premium

Operator Portals

Not a Lot of Innovation

A Closed Ecosystem

Mobile 2.0

Ubiquitous mobile broadband accessAffordable, unrestricted access to enabling software platforms, tools and technologiesOpen access, with seamless distribution and monetization abilities

The social web meets mobility

Extensive use of user-generated content so the site is owned by its contributors

Latency

Battery life

Bandwidth limitation

Constraints

Enablers of Mobile Transition

Web 2.0 Goes Mobile

Privacy

Security

Closed Application Systems

Application providersService providers

WAP

WAP sites WAP push

Source: Siemer Proprietary Research

Transition in Mobile Technology


Feature Phones TabletsSmartphones

High-end phones that run a complete operating system and are able to multitask between fully functional web browsers, email, video, gaming and music features

Tablets are complete mobile computers that further enhance web and media capabilities with larger screens and more advanced processors

Modern, low-end phones that have web capabilities but do not run a true and complete mobile operating system

Current Array of Mobile Devices


Mobile Operating System Preferences

27.0%

17.0% 17.0% 18.0%

12.0%

5.0% 6.0%4.0% 5.0% 4.0%4.0%

3.0%

6.0%

21.0%

30.0% 30.0%

38.0%36.0%

31.0% 32.0%

27.0%

36.0%

32.0%

28.0%

30.0%

50.0%

38.0%36.0%

44.0%46.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

% o

f Sur

vey R

espo

nden

ts B

uyin

g a S

mar

tpho

ne W

ho P

refe

r an

Appl

e, Go

ogle

or

RIM

Oper

atin

g Sy

stem

Blackberry OS (RIM) Android (Google) iOS (Apple)

Source: ChangeWave Research

MARKET ENVIRONMENT


Carriers More Open to Third-Party Advances

Improved Handset Technology

Increased Network Speed

Improved Content Availability

Content owners are beginning to develop content exclusively for mobile platformsConsumers have a strong desire to get content via mobile platforms

Opening their networks to targeted third-party content and applicationsActively working with mobile platforms to improve the mobile content ecosystemIncreasingly open to outsourcing non-core content operations to partners with D2C expertise

Handset technology advances enable richer, more sophisticated mobile content product offerings (e.g., iPhone, RIM, Nokia, LG, Motorola)

Proliferation of 3G/4G and Wi-Fi in mobile devices enables data-intensive content distributionHigh-definition video will be more prevalent and the proportion of streamed content compared to side-loaded content is also expected to increase

Increased User Adoption

Mobile consumers have a strong and growing desire for highly-interactive mobile apps and content Elaborate and engaging apps are continuing to drive adoption

Brands Focusing on Mobile Strategy

Brands are increasing their mobile marketing and advertising dollars to reach target demographics with an engaging rich media experience

Development Description

Market Environment – Opportunities


Emergence of Free Content

Free and ad-funded business models aggressively pursuing market share – may increase customer expectations for paid contentMobile social networks starting to compete with content players and mobile operators for consumer mindshare

Media distribution converging onto mobile devices, increasing number of potential competitors from adjacent industries (e.g., Disney, Hearst, Yahoo)

Aggressive billing practices, through Mobile 1.0 content, are under increasing regulatory scrutiny, requiring:− Limits on total billable amount− Double confirmations of subscription activation

Market Environment Carriers are having to continually invest in new network infrastructure to support the robust growth of mobile 2.0Mobile 1.0 market has reached maturity and is a declining business model

Mobile Convergence

Regulatory Environment

Cost ControlMajor carriers face an increasingly saturated market with falling average revenue per userWireless carrier revenue will top $1.0tn by 2016, though anticipatory measures must be taken to ensure future profitability

Platform Fragmentation Challenging to build cross-device applications as operating systems fragment

Development Description

Market Environment – Challenges

MOBILE GROWTH STORY


Source: Wall Street ResearchNote: Traditional devices include desktops, notebooks and netbooks; mobile devices include smartphones and tablets

The mobile market is at an inflection point as mobile device shipments are outpacing traditional devices at an accelerating rate, with no signs of growth slowing in the future

346370

393418

313

478

600

722

100

200

300

400

500

600

700

800

2010A 2011E 2012E 2013E

Glob

al Un

it Sh

ipm

ents

(mm

)

Traditional Devices Mobile Devices

Evolution of Consumer Preferences


Smartphone Growth Tablet Growth

297

423

515

620

200

400

600

800

2010A 2011E 2012E 2013E

Glob

al Un

it Sh

ipm

ents

(mm

)

16

55

85

102

20

40

60

80

100

120

2010A 2011E 2012E 2013E

Glob

al Un

it Sh

ipm

ents

(mm

)

Source: Wall Street Research

Growth Rate Breakdown


40.0%

16.0%

20.0%

3.0%

6.0%

3.0%4.0% 4.0%

6.0%

24.0%

19.0%

15.0%13.0%

10.0%

5.0%4.0% 1.0%

6.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Nokia Apple RIM Samsung HTC Sony Ericsson Motorola LG Others

Smar

tpho

ne M

arke

t Sha

re

Q1 2010 Q1 2011

Smartphone sales will hit $478mm in 2011, representing 28.0% of the global mobile phone market

Smartphone Market Share Estimates

Source: IMS Research, Wall Street Research


Russia Total = 17%

United States – 55%Canada – 50%

North America Total = 54% South Korea – 30%China – 21%India – 12%

Asia – Pacific Total = 16%

Italy – 67%Germany – 33%

UK – 32%Western Europe Total = 49%

Mexico – 12%Brazil – 2%

Latin America Total = 3%

Estimated Global Smartphone Penetration Rates

Source: Cisco, Informa Telecoms & Media, Gartner Research

Region: 2009 2010 2011 2012 2013 2014North America 32.0% 33.0% 37.0% 44.0% 51.0% 54.0%Western Europe 25.0% 28.0% 32.0% 37.0% 44.0% 49.0%Asia - Pacific 8.0% 9.0% 10.0% 12.0% 14.0% 16.0%Latin America 1.0% 1.0% 2.0% 2.0% 3.0% 3.0%Russia 6.0% 7.0% 9.0% 11.0% 15.0% 17.0%

Worldwide 9.0% 10.0% 11.0% 13.0% 15.0% 17.0%


64

7074

43

66

81

0

15

30

45

60

75

90

Jun-10 Dec-10 Jun-11

Minu

tes p

er D

ay

Web Consumption Mobile App Consumption

47.0%

32.0%

9.0%7.0% 5.0%

Games Social Networking News Entertainment Other

U.S. Mobile Apps vs. Web Consumption U.S. Mobile App Consumption by Category

Trends in Mobile App Consumption

Source: Flurry AnalyticsNote: U.S. Mobile App Consumption as of May 2011

Growth of Smartphone vs. Tablet App Downloads (in billions)

1.0

11.0

17.1

22.0

0.0

5.0

10.0

15.0

20.0

25.0

2011F 2014ETablets Smartphones


$0.8

$2.1

$3.8

$5.6

$6.9

$8.3

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

2008A 2009A 2010A 2011F 2012E 2013E 2014E

Com

bine

d Re

venu

es (i

n bi

llions

of $

USD)

$0.2

Combined revenues from the four major mobile app stores run by Apple, Google, Nokia and RIM will leap 77.7% in 2011 to $3.8bn, with total downloads projected to grow from 18.1bn this year to an estimated 33.0bn in 2014

Source: iSuppli

Projected Aggregate Revenues From App Stores


Source: Company Releases; Compete Analytics; Mobi-Geek

Social networking sites have been leading the mobile transition, combining responsive, full-service apps with business models that leverage already-present demand for continuous connectivity

Over 200 mm active mobile users in 2011 vs. only 50 mm in September 2009; mobile users now double the amount of desktop-only users

As of February 2011, Yelp had registered 3.2 million unique visitors on its mobile app while 35% of all searches came via a mobile device

Mobile users now constitute over 50% of total active users and, as of July 2011, 43% of total tweets are made with a mobile device

Social Networks as Catalysts for Mobile Expansion


Smartphones – Not Just Mobile Communications

OnStar, the multifaceted car service, offers one of many available full service apps that doesn’t simply turn on your car, but monitors all critical performance metrics in real-time

Companies like ZenTracker track a child's location in real-time and sends messages if the child leaves a designated safe areaBuilt into Google Maps

Fully interactive and useful apps that go beyond entertainment only purposes are now ubiquitously available, such as monitoring and equipping a household alarm

A key driver of smartphone growth lies in their broader applicability for consumers seeking a comprehensive device to streamline their daily tasks while at the same time providing them with enhanced media consumption capabilities

MOBILE ENTERTAINMENT


$2.5 $3.1 $3.7 $4.3 $5.0$3.7 $4.3 $4.8 $4.8 $5.4$1.8

$2.5$3.0 $3.6

$4.4

$2.6$3.8

$4.9$5.9

$7.1

$9.1

$9.9

$10.6$11.3

$11.8

$19.8

$23.6$26.9

$30.0

$33.6

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

2008 2009 2010 2011 2012

Glob

al Mo

bile

Ente

rtain

men

t Sale

s (in

billi

ons o

f $US

D)

Personalization

Infotainment

Games & Apps

Full Track Music

Video

2008A-2012ECAGR

6.7%

28.5%

25.0%

9.9%

19.0%

Total 14.1%

Source: Strategy Analytics; Nielson

A A A E E

The $27.0bn mobile entertainment market is growing at a 14.0% CAGR across all subsectorsAs the largest sector, personalization (e.g. ringtones, etc.), continues to mature, future growth will come from premium content, as indicated by the video subsector’s 28.0% CAGRAs of 2010, 11.0% of global mobile internet users stream video

Global Mobile Entertainment Spending


Video

Data

OtherFile Sharing

103.8%

94.4%

80.3%

62.4%

Total 92.5%

2010A – 2015E CAGR

113.872.6 125.333.4

33.5

73.7117.9

11.564.2 160.1

Global Mobile Data Traffic From 2010A – 2015E

Source: Cisco Visual Networking Index

201.0 318.8176.7 258.7378.6

321.0

561.2

893.3

1,407.0

288.4

655.4

1,334.3

2,452.9

4,149.6

0.0

1000.0

2000.0

3000.0

4000.0

5000.0

6000.0

7000.0

2010A 2011F 2012E 2013E 2014E 2015E

Mobi

le Da

ta U

sage

(in

Tera

byte

s)


Dual-core chips enable more power to be squeezed out of the processor − Two 1.0GHz processors used in parallel speed up performance

• In cases where mobile software has been optimized to take advantage of the parallel processing power, dual-core processors provide enhanced multitasking capabilities

Smartphones will increasingly be used as a personal hub for video and other content− With multitasking abilities boosted by dual-core chips, streaming media from a smartphone becomes much

more seamless as phones can still function as a web browser and handle email, even while being used as a playback hub

The global penetration rate of dual-core smartphones is expected to be 15.0% by the end of 2011 and will grow to 45.0% by 2015Nvidia has begun taking advantage of the potential of mobile graphics capabilities, offering a dedicated Android app to provide high quality games that specifically leverage their own dual-core technologyMore powerful technology in conjunction with larger screen sizes leave tablets positioned for explosive growth− Mobile entertainment companies that can adjust their application offerings to successfully leverage the rapid

advances in tablet technology will be best positioned to outperform in a crowded industry

Source: Wall Street Research, Venturebeat.com

Smartphones Are Becoming As Powerful As PCs


61.1 67.4

102.2

118.2

0

20

40

60

80

100

120

140

2-Inch 3-Inch 4-Inch 5-Inch

Aver

age M

inut

es S

pent

Wat

chin

g Mo

bile

Cove

rage

of 2

010 W

orld

Cup

Screen Size

The 2010 World Cup was mobile video’s coming out party, providing convincing proof of consumer interest for video on-the-go

ESPN apps offering mobile video services for the World Cup generated 8.2 mm visits and 50.4 mmpage views to World Cup contentGrowth in mobile video data consumption is uneven, occurring at much higher levels for devices with larger screens− This trend points to significant growth opportunities for tablet devices, as they offer a much more immersive entertainment

experience• Much of the upside potential of tablet devices will be realized in the near future as high definition screens, powered by newer quad-core

processors, become ubiquitous and the industry standard

Source: Venturebeat.com, Moconews.net

Upside Potential for Tablets Realizable in the Near-Term


Mobile Video Bandwidth and Streaming

30%

30%

20%

20%

iPod iPhone iPad Android

Global Mobile Bandwidth Usage Global Mobile Video Streaming By Devices and Traffic

78%

22%

Other Apps YouTube

52%48%

YouTube Other Video Streaming

Aggregate mobile data consumption grew by 77.0% from 1H 2010 to 1H 2011, far higher than the growth of fixed networks (25.0%)Video streaming grew 93.0% in the first six months of 2011VoIP and messaging traffic grew even faster at 101.0%, but still only represents a total of 4.0% of all mobile trafficYouTube accounted for a 22.0% share of total mobile bandwidth usage

As of May 2011, Apple continues to dominate the mobile video market with an 80.0% share− The iPad already accounts for 20.0% market share of

the mobile video streaming market as traditional networks such as HBO and ABC continue to embrace and create high-quality apps for the device

Although Android comprises 20.0% of the total mobile video market, Google-owned (and Android-operated) YouTube apps accounted for 52.0% of mobile video streaming

39%

29%

25%

4%3%

Video Streaming File SharingWeb Browsing VoIPOther Apps

Source: Allot Communications; Venturebeat.com


61%

35%

39%

65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

January '11 June '11

Reve

nue G

ener

atio

n fro

m U

.S. T

op 10

0 Gro

ssin

g Ga

mes

% Revenue From Premium Games % Revenue From Freemium Games

Freemium, or (“free-to-play”), gaming has proved to be the only sustainable business model in the mobile gaming industry

Source: Flurry Analytics; Venturebeat.com

The presence of free and cheap games (the average game price is $1.05) is unhealthy and a primary reason why established players like Nintendo, despite increasing demand, have remained on the sidelines

− Additionally, as a result, average mobile per-game revenue has historically averaged just $6,000 a year

The freemium model allows businesses to offer games free of charge while charging a premium for advanced featuresApple introduced in-app purchases (the ability to buy things such as virtual goods without leaving an app) in Q4 2010 and Google followed in Q2 2011Mobile games occupy roughly 75.0% of all top 100 grossing apps in app stores, making freemium the most dominating business model in the mobile apps industry

A New Business Model in Gaming


Value Volume

America Europe

Japan

South Korea

Brazil

India

China

Console MMO

Pure ConsoleBrowser-based MMO

Casual Online

Social-Mobile

Mobile

Social

Users: Millions to tens of millionsAverage Revenue Per User: $ - $$$Costs: Ranges from millions to tens of millionsOperating Profit: Negative to 20%+Growth Rate: Negative to <10%Business Model: Unit sales, subscriptions, virtual goods

Users: Thousands to hundreds of millionsAverage Revenue Per User: ¢ - $$Costs: Tens of thousands to millionsOperating Profit: Negative to 60%Growth Rate: Negative to 20% - 100%+Business Model: Unit sales, free, virtual goods, ads


As mobile devices saturate the market and social networks rapidly increase their penetration into developing countries, the mobile games market will split along these lines of “value” and “volume”

(large long-term niche) (mass market growth)

Splitting the Mobile Games Market

MOBILE COMMERCE


Location-Based Services: Enable real-time physical retail/service opportunitiesTransparent Pricing: Instant local and online price comparison could disrupt retailersDiscounted Offers: Deep discounts drive foot traffic to local retailersImmediate Gratification: OTA (over-the-air) instant digital product and content delivery

Location-Based Services:Shopkick iPhone App

Find deals and offers in your area

Transparent Pricing:ShopSavvy CrossPlatform AppComparison shopping among

online and local stores

Discounted Offers:Groupon iPhone AppLocal services up to

90.0% off

Immediate Gratification:iTunes Store on iPhone

Music/Video/Apps delivered wirelessly


Mobility Driving Change in Consumer Behavior


Full-Service mCommerce PlatformsGoogle is the current industry leader in mobile and eCommerce consolidation with Google Offers, a direct Groupon competitor, being integrated with the newly introduced Google Wallet

Google Wallet is an Android app to replace the redundancy of a regular wallet with its multiple credit cards, loyalty cards and gift cards− Google Wallet, and most other digital wallets, are powered by NFC, or (“near-field communication”), which lets the consumer

swipe their device over a receiver to make a payment• During Summer 2011, Google launched a test of NFC in New York City and San Francisco while 120,000 merchants in the U.S. are

currently ready to accept Google Wallet and NFC technology

− Google’s rendition is comprehensive and when a consumer swipes their phone, coupon offers can be automatically redeemed to save the consumer money and/or earn them loyalty points

Google Offers delivers daily, Groupon-like deals to a person’s inbox− As a result of integration with Google Wallet, offers are tied directly into the wallet app and consumers are able to either scan

and pay discounted pricing immediately, or they can display a barcode on their screen which merchants can scan

Current issues with digital wallets lie not with technology but with inconsistent consumer adoption trends− Physical cards work reasonably well, thus successful firms will

look to incentivize consumers with tangible rewards− When consumers begin getting real value from mobile-based

digital and virtual programs, the switch to mobile wallets will become increasingly attractive


$6.0

$31.0

$0

$8

$15

$23

$30

$38

2011F 2015E

Glob

al m

Com

mer

ce R

even

ues i

n $b

n US

D

$3.3

$20.6

$0

$5

$10

$15

$20

$25

2011F 2015E

Mobi

le Ad

verti

sing

Reve

nues

in $b

n US

D

mCommerce Revenue Growth Mobile Advertising Revenue Growth

As new technology continues to provide more seamless and secure digital payment services, global mCommerce revenue is set to reach $31.0bn by 2015mCommerce is also a leading indicator of mobile advertising growth with advertising revenues following consumers as they increasingly shift their preferences toward mobile purchases

Source: Forrester Mobile Commerce, Gartner Research

Revenue Trends


Mobile Advertising – A Market Poised For GrowthThere are 726.0 mm global 3G subscribers− Mobile internet users grew 35.0% YoY from 2009-2010

75.0% of respondents in a 2011 IAB survey reported that buying and selling ads in social media and mobile platforms is importantMobile video is emerging as an important element of mobile internet use− In addition to YouTube, applications for ESPN, Netflix, Hulu and HBO are now available on Android and iOS

devices− Mobile video data traffic is forecast to grow at a compound annualized rate of 131.0% between 2009 and 2014− Mobile video will reach 66.0% of mobile internet traffic by 2015− By 2014, half of U.S. web browsing will be done on mobile devices

Source: Wall Street Research, Cisco Research(2010) and 2011 IAB Interactive Ad IQ Survey

$370.0

$1,400.0

$0

$400

$800

$1,200

$1,600

2010A 2015E

17.6

52.5

0

15

30

45

60

2010A 2015E

U.S. Mobile-TV Ad Sales ($mm) U.S. Mobile-TV Viewers (millions)


Mobile Advertising Ecosystem

Brands Publisher/ Developer ConsumersAgencies

Promote their brand or product

Create strategy, campaign and buy inventory

Connect buy –side and sell –side on scale

Optimize ad distribution

Sell their inventory

Engage with ad-enabled

inventory

AdNetworks Optimizers

Source: Smaato, “Mobile Advertising Ecosystem”


SubscriberMark

eter

Source: LUMAscape

Mobile Display Advertising Landscape


PUBL

ISHE

RSADVERTISERS

Supply Side Platforms

Rich Media Ad Servers

Data Suppliers

Demand Side Platforms

Location Networks

Ad Networks Media Buyers

Mobile Display Advertising Landscape

Source: LUMAscape

TRENDS TO WATCH


Venture Capital Investment Trends

Source: Proprietary discussions involving S&A and select venture capitalists

VC Investment Criteria and Characteristics by Consumer Internet Sub-Sector

Transaction solutions for mobilecommerceMobile value added services (i.e.improving SMS features andfunctionality)Mobile application providers anddevelopersInternational wireless carriers /service providersLocation based services (geo-targeting)

Mobile

Delivery platforms for UserGenerated Content (“UGC”)Entertainment networks andservices for mobile phonesSoftware and services for contentDistribution and storage methodsfor contentDirectories and listings for mobileusersDevelopers of branded widgets

Content

Ad-serving platforms for mobilecarriersAd targeting solutionsMobile advertising technology andplatformsSMS mobile ad networkAd supported gaming platformPure-play video ad networkMobile search and advertisingsolutions

Advertising / MarketingPlatforms

Advanced casual game publishersMobile entertainment producers ofgames, ringtones and imagesMultiplayer mobile gaming softwareDeveloper and publishers of onlinegamesLocation-based mobile gamedevelopersMobile app game developers

GameDeveloper / Distributor


There is considerable usage overlap between PCs and tablets, particularly for content-consumption activities, and with consumption accounting for 75.0% of computer usage, it is likely that cannibalization estimates have thus far been underestimated


Key Tablet and PC Shipments

2009A 2010A 2011F 2012E 2013EShipments (in millions)

Desktops 136 146 152 157 159Notebooks 135 164 189 210 232Netbooks 34 36 29 26 27Tablets - 16 55 85 102

Total 305 362 425 478 519

PCs, gross 305 351 386 416 439Tablet cannibalization - (5) (16) (23) (21)PCs, net 305 346 370 393 417Tablets - 16 55 85 102

Total 305 362 425 478 519

YoY GrowthDesktops -10% 7% 5% 3% 1%Notebooks 6% 22% 15% 11% 10%Netbooks 118% 8% -20% -11% 5%Tablets - - 245% 54% 20%

Total 4% 19% 17% 12% 9%

PCs, gross 4% 15% 10% 8% 6%PCs, net 4% 14% 7% 6% 6%

Cannibalization Rate - 30% 29% 27% 21%


On the Horizon – 2011 and BeyondTablets will continue to exponentially increase the pace of the mobile revolution− Although tablet devices will eat into traditional computing device sales (i.e. PCs, e-readers, etc.), the majority of

prospective buyers view tablets as an additional purchase− Significant growth opportunities exist for those able to leverage faster processors and new applications to provide

content-creation software for tablet devices

Competition between HTML5 and native apps will significantly shape the future of mobile gaming− HTML5 developers’ latest approach is the “hybrid app,” which is a native app that runs all components in a browser• With games running in the browser, users won’t be dependent on purchasing from app stores which currently take a 30% cut

from developers− 95% of the functionality of native apps can currently be delivered by HTML5, leaving native apps with only a

temporary advantage, which provides marginal differentiation for the vast majority of apps

The introduction of tiered data pricing by Verizon presents a challenge in marketing data-heavy mobile entertainment services, particularly mobile video, to new smartphone converts − With multi-core technology, developers will be able to streamline their offerings to consume data more efficiently,

although new customers may still avoid innovative apps altogether if they cannot clearly understand their pricing options

Source: Wall Street Research, Venturebeat.com

PUBLIC AND TRANSACTION COMPARABLES


Source: Capital IQ

Select Mobile Public Comparables as of 11/16/2011(figures in millions of $USD, except per share) Share Market Enterprise EV / FYE EV / LTM LTM AnnualMobile Companies Ticker Price Cap Value (EV) Revenue EBITDA Revenue EBITDA Revenue Growth

Acotel Group SpA ACO $31.80 $130.8 $84.6 0.4x 12.2x 0.5x 4.9x -24.4%Artificial Life, Inc. ALIF 0.06 4.4 4.9 0.1x 0.3x 0.3x NM -42.2%Aspiro AB ASP 0.22 45.3 37.4 0.9x NM 0.9x NM 36.2%Buongiorno SpA BNG 1.39 146.5 262.8 0.8x 6.0x 0.8x 6.4x -1.9%Com2uS Corporation A078340 23.46 223.6 186.6 7.5x 49.9x 7.0x 45.5x 0.2%DADA SpA DA 2.81 45.6 80.9 0.4x 6.3x 0.4x 8.9x 38.5%Danal Co. Ltd. A064260 6.27 103.1 81.1 1.1x 10.8x 1.1x 10.8x -1.3%Dena Co. Ltd. 2432 34.67 5,119.9 4,294.9 2.9x 5.7x 2.5x 5.1x 59.5%Digi.com Bhd DIGI 11.03 8,578.3 8,495.6 4.9x 11.5x 4.5x 10.2x 12.5%SmartEbook.com. Co., Ltd. 2330 25.06 55.0 -2.0 NM NM NM NM -58.4%GameLoft SA GFT 5.63 426.8 391.6 1.9x 11.2x 1.8x 11.1x 20.9%Glu Mobile, Inc. GLUU 3.12 198.7 161.9 2.5x NM 2.4x NM -1.6%Gree, Inc. 3632 35.42 8,201.5 7,931.1 9.5x 19.5x 7.4x 14.6x 101.5%Index Corporation 4835 24.11 94.8 353.9 1.2x 11.1x 1.2x 11.1x -34.0%Kongzhong Corp. KONG 4.93 186.2 53.2 NM 2.6x NM 2.4x 7.9%Motricity, Inc. MOTR 1.45 67.0 70.3 0.5x 14.6x 0.5x 14.4x 8.5%NeuMedia, Inc. MNDL 0.65 27.1 32.1 3.5x NM 4.0x NM -30.8%Smith Micro Software Inc. SMSI 1.12 40.1 -14.0 NM NM NM NM -34.5%SNAP Interactive, Inc. STVI 0.63 23.8 15.1 2.3x NM 0.9x NM 250.4%Tencent Holdings Ltd. 700 23.06 36,553.4 34,617.6 11.6x 21.8x 8.5x 17.6x 46.5%Tose Co. Ltd. 4728 6.30 46.6 19.5 0.3x 3.3x 0.3x 3.3x 27.9%Velti Plc VELT 8.75 538.6 408.6 3.5x 21.3x 2.6x 65.3x 28.1%

Mean $2,616.7 2.9x 13.0x 2.5x 15.4x 18.6%Median $82.9 1.9x 11.2x 1.2x 10.8x 8.2%


Source: Capital IQ

Selected M&A Transactions(figures in millions of $USD) Implied

Date Enterprise EV/LTM EV/LTMAnnounced Target Acquirer Target Business Description Value Revenue EBITDA11/09/2011 Yole Wireless Technology (HongKong) Shenzhen Fei Si Information Mobile Content $10.5 - -11/08/2011 LMK, LLC. Black Ocean LLC Mobile Content - - -11/06/2011 iLoop Mobile, Inc. Lenco Mobile Inc. Mobile Advertising 47.0 - -11/03/2011 PhotoWonder Baidu, Inc. Mobile Services - - -11/01/2011 Global Bay Mobile Technologies Inc. VeriFone Systems, Inc Mobile Solutions - - -10/31/2011 Monitise Americas, LLC Monitise plc Mobile Payments 26.8 - -10/28/2011 Smartron5 Inc. LOLapps, Inc. Mobile Games - - -10/24/2011 Particle Code Appcelerator, Inc. Mobile Solutions - - -10/24/2011 Volly, Inc. Location Labs Mobile Services - - -10/24/2011 Wirkle Inc. Location Labs Mobile Solutions - - -10/18/2011 Fromdistance Ltd. Numara Software, Inc. Mobile Solutions - - -10/12/2011 Cdnetworks Co Ltd KDDI Corp. Mobile Content 195.3 2.0x -10/10/2011 Cybird Co. Vexed Limited Mobile Advertising - - -10/10/2011 Qumu, Inc. Rimage Corp. Mobile Solutions 51.8 5.0x -10/07/2011 Mobile Complete, Inc. Keynote Systems Inc. Mobile Services 90.0 4.5x -10/06/2011 NewBay Software Limited Research In Motion Limited Mobile Solutions 100.0 - -10/06/2011 Swype Inc. Nuance Communications, Inc. Mobile Solutions 102.5 - -10/03/2011 Geocade Inc. JNJ Mobile, Inc. Mobile Services - - -10/03/2011 Nitobi Software Ltd. Adobe Systems Inc. Mobile Solutions - - -10/01/2011 Lucidity Mobile Ltd. Fetch Media Ltd Mobile Advertising - - -09/30/2011 SigNav Pty Ltd. u-blox Holding AG Mobile Services - - -


Source: Capital IQ

Select M&A Transactions (cont’d)(figures in millions of $USD) Implied

Date Enterprise EV/LTM EV/LTMAnnounced Target Acquirer Target Business Description Value Revenue EBITDA09/22/2011 Stockgroup Media Inc., Mobile Operations QuoteMedia Inc. Mobile Services - - -09/22/2011 Air2Web, Inc. Velti Plc Mobile Advertising $19.0 - -09/19/2011 Fusion Wireless, Inc. u-blox Holding AG Mobile Solutions - - -09/15/2011 Unicell Advanced Cellular Solutions Ltd. TMT Investments PLC Mobile Solutions 28.3 0.5x -09/09/2011 Steam Communications Oy Arena Interactive oy Mobile Advertising - - -09/06/2011 Techneos Systems Inc. Confirmit ASA Mobile Services - - -09/05/2011 Cybird Co. GMO NIKKO Inc. Mobile Advertising 0.9 0.1x -09/02/2011 Zave Networks, Inc. Google Inc. Mobile Advertising - - -08/31/2011 Global Idealogy Corp., Inc. - Mobile Services 0.2 0.1x NM08/31/2011 Zaypay International B.V. Mobile Interactive Group Limited Mobile Payments - - -08/30/2011 KT Innotz Inc. KT Corp. Mobile Services 9.3 - -08/30/2011 Digital Reach Group Limited TAKE 5 SOLUTIONS, LLC. Mobile Advertising - - -08/29/2011 Resolute Games & Apps Lokion, Inc. Mobile Games - - -08/15/2011 Socialight, Inc. Group Commerce Inc. Mobile Platform - - -08/10/2011 The Bar Pages, Inc. Energy King, Inc. (nka:Godfather Mobile Platform - - -08/05/2011 MCN Asia Holdings,Pte. Ltd. OPT, Inc. Mobile Advertising - - -08/03/2011 HipCricket, Inc. Augme Technologies, Inc. Mobile Advertising 54.9 6.2x NM08/01/2011 Blammo Games Inc. Glu Mobile, Inc. Mobile Games 21.7 - -07/27/2011 Nobot Inc. mediba Inc. Mobile Advertising - - -07/27/2011 Gotta Go Text, LLC and Hot Deals Network SoMo Technologies, Inc. Mobile Advertising - - -07/27/2011 Zlango, Ltd. Vringo, Inc. Mobile Services 4.0 - -


Source: Capital IQ

Select M&A Transactions (cont’d)(figures in millions of $USD) Implied

Date Enterprise EV/LTM EV/LTMAnnounced Target Acquirer Target Business Description Value Revenue EBITDA07/20/2011 JAGTAG, Inc. Augme Technologies, Inc. Mobile Multimedia Services $6.1 4.7x -07/14/2011 Venue Media LLC Energy King, Inc. Mobile Advertising - - -07/12/2011 GoTV Networks Phunware, Inc. Mobile Content - - -07/11/2011 Projkt Nine, Inc. Riptide Games, Inc. Mobile Gaming - - -07/08/2011 Beat Systems Limited Capita PLC Mobile Software Solutions - - -07/06/2011 Kingsoft Corporation Limited Tencent Holdings Ltd. Mobile Gaming 536.8 3.6x 10.3x07/05/2011 NEPRO IT Co.,Ltd. - Mobile Content 20.5 3.1x NM06/30/2011 Mbrand3 Regile Mobile Mobile Network Group SA Mobile Advertising - - -06/29/2011 Pringo MobileBits Holding Corp. Mobile Platform - - -06/27/2011 GoMo News bNET Communications, Inc. Mobile Advertising - - -06/27/2011 United Cellular Technologies Group Neomobile SpA Mobile Entertainment Solutions - - -06/22/2011 ProScan Group Zetes Industries Mobile Software Solutions 7.5 0.3x 5.2x06/16/2011 Axel Mark, Inc. Septeni Holdings Co Ltd Mobile Content - - -06/14/2011 Terrestar Networks, Inc. Dish Network Corp. Mobile Network Services 1325.0 - -06/07/2011 i-POP Networks Pte., Ltd. InternetQ PLC Mobile Media Services 9.9 3.1x -06/07/2011 Scoreloop AG Research In Motion Limited Mobile Gaming 71.0 - -06/07/2011 15miles LSF Interactive, Inc. Mobile Advertising - - -06/01/2011 WPA Mobile Aps ePocket Solutions ASA Mobile Software Solutions - - -06/01/2011 China Youth Media, Inc. China Youth Media, Inc. Mobile Advertising - - -05/23/2011 Qustodian Trust, S.L. - Mobile Advertising - - -05/23/2011 RunSystem Corporation GMO Internet Inc. Mobile Software Solutions - - -05/20/2011 Rayonnance Technologies SAS EPF Partners Mobile Software Solutions - - -05/18/2011 Rough Cookie B.V. ngmoco, LLC Mobile Gaming - - -05/12/2011 Selatra Limited 24 Mobile Advertising Solutions AB Mobile Content - - -


Select M&A Transactions (cont’d)

Source: Capital IQ

(figures in millions of $USD) ImpliedDate Enterprise EV/LTM EV/LTM

Announced Target Acquirer Target Business Description Value Revenue EBITDA05/12/2011 Chartwell Technology Inc. Amaya Gaming Group Inc. Mobile Entertainment $9.7 0.9x NM05/11/2011 TIC-mobile GmbH SinnerSchrader AG Mobile Software Solutions 1.7 - -05/11/2011 Inside Network, Inc. WebMediaBrands Inc Mobile Social Gaming 14.9 7.1x -05/10/2011 Liveware Inc. Marvelous Entertainment Mobile Content 5.3 0.6x -05/03/2011 Firemint Pty Ltd. Electronic Arts Inc. Mobile Gaming - - -05/02/2011 Smashing Ideas, Inc. Random House, Inc. Mobile Content - - -04/29/2011 Ring Back Tones Australia Pty Ltd. RealNetworks Inc. Mobile Content 3.6 - -04/21/2011 OpenFeint Inc. GREE International, Inc. Mobile Social Gaming 104.0 NM -04/21/2011 Greystripe, Inc. ValueClick Media, Inc. Mobile Gaming 70.0 - -04/19/2011 DadaNet S.p.A. Buongiorno SpA Mobile Entertainment Solutions 44.8 0.4x 3.1x04/12/2011 GittiGidiyor A.S. eBay Inc. Mobile Commerce - - -04/11/2011 Peekaboo Mobile, Inc. nSphere, Inc. Mobile Commerce - - -03/24/2011 MobileADict Sárl YOC AG Mobile Advertising - - -03/18/2011 Floodgate Entertainment, LLC Zynga, Inc. Mobile Gaming - - -03/16/2011 NEPRO IT Co.,Ltd. Cobalt Ray Co. Ltd Mobile Gaming 17.4 2.8x NM03/16/2011 Miles Ahead Ltd EveryMatrix Ltd Mobile Gaming - - -03/12/2011 Adenyo Inc. Motricity, Inc. Mobile Entertainment 139.5 10.6x NM03/08/2011 weComm Limited Open Text Corp. Mobile Interactive Solutions - - -02/25/2011 Didiom LLC Exclaim Mobility, Inc. Mobile Media Services - - -02/23/2011 NEPRO IT Co.,Ltd. Cobalt Ray Co. Ltd Mobile Content 17.4 2.6x NM02/18/2011 MESSAGEbuzz Inc. Cellit, LLC Mobile Advertising - - -02/12/2011 Oberon Information Technology Co. Ltd. Moli Mobile Limited Mobile Gaming - - -02/10/2011 m-Wise Inc., Substantially all Assets Vringo, Inc. Mobile Content - - -02/08/2011 Fatzoo Pty Ltd Motopia Limited Mobile Social Gaming 0.3 - -



Source: Capital IQ


Announced Target Acquirer Target Business Description Value Revenue EBITDA02/08/2011 THQ Wireless, Inc. 24 Mobile Advertising Solutions AB Mobile Gaming - - -02/04/2011 adHUBS Inc. Reply! Inc. Mobile Advertising - - -02/03/2011 UDS Directory Corp. Poynt Corporation Mobile Content $0.5 - -02/02/2011 Elevate Marketing Group, LLC Highland Business Services, Inc. Mobile Software Solutions 28.5 219.2x -02/02/2011 Deconstruct Media, Inc. Verve Wireless, Inc. Mobile Advertising - - -01/30/2011 Adenyo Inc. Motricity, Inc. Mobile Entertainment Solutions - - -01/25/2011 rel8tion, LLC Facebook, Inc. Mobile Advertising - - -01/20/2011 Hudson Soft Company Konami Corp. Mobile Entertainment Software 45.4 0.3x 4.7x01/18/2011 Yospace Technologies Ltd. MOKO.mobi Limited Mobile Video Services - - -01/11/2011 Index Corporation - Mobile Commerce - - -12/29/2010 Wokup SAS Wedia SA Mobile Advertising 2.0 - -12/24/2010 NEPRO IT Co.,Ltd. Cobalt Ray Co. Ltd Mobile Content 17.9 2.3x NM12/23/2010 Samart Corp. Public Co. Ltd. - Mobile Media Services 427.2 0.8x 6.2x12/23/2010 Shanghai Chenyan Information Technology Chengdu B-ray Media Co. Ltd. Mobile Gaming 40.0 - -12/22/2010 Fox Mobile Group, Inc. Jesta Capital Group Mobile Content - - -12/20/2010 Celestial Digital Entertainment, Ltd. Profit Harvest Company, Ltd. Mobile Gaming 2.3 - -12/17/2010 FoneStarz Media Group Limited LiveWire Mobile, Inc. Mobile Entertainment Services 2.7 0.7x -12/06/2010 3GUU Mobile Entertainment Industrial VODone LIMITED Mobile Gaming 34.1 - -12/02/2010 The Zynga With Friends Studio Zynga, Inc. Mobile Gaming - - -12/02/2010 Racing Limos America, Inc. Atlas Technology Group, Inc. Mobile Advertising - - -11/30/2010 PlayScreen, LLC - Mobile Social Gaming - - -11/24/2010 2moro Mobile Pty Ltd. Motopia Limited Mobile Application Developer 0.9 - -11/19/2010 CAS GmbH Accenture plc Mobile Software Solutions - - -11/16/2010 G-mode Co. Ltd. GAIA Holdings Corporation Mobile Gaming - - -



Source: Capital IQ


Announced Target Acquirer Target Business Description Value Revenue EBITDA11/09/2010 Beijing Genesis Interactive Technology Accenture plc Mobile Software Solutions - - -11/03/2010 Ooh Wee Media, Inc. Super Rad Corporation Mobile Media Services - - -11/01/2010 Vortxt Interactive, Inc. Transcontinental Inc. Mobile Messaging Services - - -10/15/2010 Mobiqa Ltd. NCR Corp. Mobile Commerce $15.0 - -10/11/2010 Ozura World Ltd. PT Inovisi Infracom Tbk Mobile Entertainment Services - - -10/05/2010 Airborne Mobile Inc. Cellfish Media, LLC Mobile Messaging Services - - -10/05/2010 Dilithium Inc. Onmobile Global Limited Mobile Video Solutions - - -09/30/2010 Bravo Games S.L. Sociedad para la Promoción Mobile Social Gaming 18.9 - -09/30/2010 Mobclix, INC. Velti USA, Inc. Mobile Advertising 54.1 - -09/29/2010 mSnap, Inc. Marketron Broadcast Solutions, LLC Mobile Advertising - - -09/18/2010 Injoy Information Technology Co. Limited Moli Group Ltd. Mobile Entertainment Services 133.0 - -09/01/2010 VizualMobile Limited Cloud Centric Systems, Inc. Moblile Software Services - - -08/30/2010 Zetawire Inc. Google Inc. Mobile Commerce - - -08/26/2010 ExtendMedia Corporation Cisco Systems, Inc. Mobile Media Services - - -08/25/2010 Zero9 S.p.A Neomobile SpA Mobile Media Services - - -08/16/2010 MConnect Pty Ltd. Motopia Limited Mobile Advertising 11.8 - 6.4x

Mean $79.2 11.6x 6.0xMedian $19.0 2.4x 5.7x


Source: Capital IQ*Total Funding Raised includes all public data, some rounds were not disclosed

Select Mobile Private PlacementsDate

Announced TargetBusiness

DescriptionAmount Raised in Round ($mm)

Total Funding Raised ($mm)

09/28/2011 Mootwin SAS Mobile Apps $5.5 $6.7 09/21/2011 Mention Mobile LLC Mobile Games 0.3 0.309/20/2011 Milk Inc. Mobile Apps 1.5 3.009/15/2011 Masabi Limited Mobile Commerce 4.0 6.009/12/2011 Radiate Media Inc. Mobile Platform 10.0 21.109/08/2011 Smule, Inc. Mobile Apps 12.0 23.909/08/2011 4INFO, Inc. Mobile Advertising 14.0 84.509/08/2011 Sincerely, Inc. Mobile Apps 3.0 3.009/07/2011 Iddiction, Inc. Mobile Apps 3.5 3.508/31/2011 BlueStack Systems, Inc. Mobile Software 6.4 21.808/28/2011 Waze Ltd. Mobile Services 30.0 67.008/24/2011 Kickanotch mobile Mobile Services 1.1 1.808/24/2011 Appyzoo Inc Mobile Games 0.3 0.308/22/2011 madvertise Mobile Advertising GmbH, Mobile Advertising 10.0 10.008/21/2011 Affle Pte Ltd. Mobile Advertising 10.0 10.0



Select Mobile Private Placements (cont’d)Date




09/28/2011 Mdialog Mobile Video $5.0 $8.2 09/21/2011 Flexilis, Inc. Mobile Software 40.0 76.009/20/2011 Klip, Inc. Mobile Platform 2.0 2.009/15/2011 InMobi Mobile Advertising 200.0 215.609/12/2011 Zfere Holdings Inc. Mobile Platform 681.8 781.809/09/2011 Actus Mobile Solutions Mobile Advertising 0.3 0.309/08/2011 FastCustomer, Inc. Mobile Apps 0.8 0.809/08/2011 Echoecho Media, Inc. Mobile Apps 0.8 0.809/08/2011 Taptu Limited Mobile Media Services 3.5 16.909/07/2011 Adfonic Ltd. Mobile Commerce 7.5 8.109/06/2011 MoonShado, Inc. Mobile Services 1.1 8.408/31/2011 CardStar, Inc. Mobile Commerce 0.5 2.308/26/2011 JiGrahak Mobility Solutions (P) Ltd. Mobile Advertising 0.2 2.408/24/2011 Bloodhound Inc. Mobile Apps 0.3 0.308/24/2011 Taptera Inc. Mobile Services 2.0 2.008/24/2011 Beijing Chukong Technology Co.,Ltd Mobile Games 14.0 14.008/22/2011 Mogreet, Inc. Mobile Messaging 3.0 12.008/21/2011 Brandtone Limited Mobile Messaging 8.2 28.008/20/2011 SavvyPhone, LLC Mobile Services 3.0 3.008/18/2011 Noqoush Mobile Media Group Mobile Advertising 3.0 3.008/16/2011 Zoove Corp. Mobile Advertising 15.0 26.708/15/2011 Expedite 5, Inc. Mobile Games 1.0 10.7


Select Mobile Private Placements (cont’d)


Date Announced Target

Business Description

Amount Raised in Round ($mm)


08/04/2011 DB3 Mobile, Inc. Mobile Entertainment Services $0.5 $0.5 07/19/2011 Vserv Digital Services Pvt. Ltd. Mobile Advertising 3.0 3.007/18/2011 TheMobileGamer Pte Ltd. Mobile Gaming 0.8 1.207/01/2011 Tapjoy, Inc. Mobile Media Services 30.0 70.706/30/2011 Burt Mobile Advertising 3.2 3.206/30/2011 TicTacTi LTD Mobile Media Services 0.5 0.506/23/2011 Vpon Inc. Mobile Advertising 7.0 7.006/17/2011 Bee Media Incorporated Mobile Media Services 0.1 0.106/15/2011 Tintri, Inc. Mobile Media Services 18.0 35.006/09/2011 ThunderSoft Co., Ltd. Mobile Gaming 15.4 15.405/19/2011 Fuse Powered Inc. Mobile Gaming 2.0 2.005/17/2011 Biff Labs, Inc. Mobile Software Solutions 1.5 1.505/10/2011 Sourcebits Technologies Private Limited Mobile Software Solutions 10.0 10.004/19/2011 Briabe Media, Inc. Mobile Advertising 2.0 2.004/08/2011 WhatsApp Inc. Mobile Messaging Services 8.0 8.003/31/2011 GameSalad Inc. Mobile Gaming 6.1 7.303/29/2011 VODone LIMITED Mobile Entertainment Services 26.2 105.803/24/2011 Tintri, Inc. Mobile Software Solutions 17.0 35.003/10/2011 Rovio Mobile Ltd. Mobile Gaming 42.0 42.003/09/2011 MindSnacks, Inc. Mobile Gaming 1.2 1.203/03/2011 Ruckus Media Group, LLC Mobile Entertainment Services $3.5 $3.5


Select Mobile Private Placements (cont’d)Date




02/28/2011 Clickatell (Pty) Ltd. Mobile Messaging Services $12.0 $12.002/24/2011 ZIO Studios SAS Mobile Entertainment Services 1.3 1.302/23/2011 Grey Area Ltd. Mobile Gaming 2.5 2.502/08/2011 TinyCo.com Mobile Gaming 18.1 18.101/26/2011 Smaato, Inc. Mobile Advertising 7.0 15.001/17/2011 Crimson Tide Plc Mobile Software Solutions 0.8 4.701/12/2011 Apalya Technologies Pvt. Ltd. Mobile Entertainment Services 7.5 11.001/06/2011 Tapjoy, Inc. Mobile Entertainment Services 21.0 70.712/30/2010 TapMe, Inc. Mobile Gaming 1.5 1.812/29/2010 Turpitude, LLC Mobile Entertainment Services 1.0 1.012/21/2010 SCVNGR, Inc. Mobile Gaming 17.0 21.912/15/2010 Pocket Gems, Inc. Mobile Gaming 5.0 5.012/13/2010 Mobixell Networks Inc. Mobile Media Services 10.0 39.012/06/2010 Lotame Solutions, Inc. Mobile Media Services 11.0 36.311/22/2010 Mo'Minis, Ltd. Mobile Gaming 4.5 7.911/12/2010 HI Corporation Mobile Software Solutions 1.9 1.911/10/2010 Oberon Media, Inc. Mobile Gaming 16.0 36.511/02/2010 NetPlay TV plc Mobile Entertainment Services 4.0 38.110/28/2010 Kiip, Inc Mobile Advertising 0.3 4.410/20/2010 Beijing Downjoy Information Tech Co., Ltd Mobile Gaming 12.0 12.009/27/2010 NetShelter Technology Media, Inc. Mobile Advertising 15.0 23.0



Select Mobile Private Placements (cont’d)


Date Announced Target

Business Description

Amount Raised in Round ($mm)


09/15/2010 BUMP Network, Inc. Mobile Messaging Services $1.1 $1.109/15/2010 Virtual City Ltd Mobile Software Solutions 1.0 1.009/07/2010 uTest Inc. Mobile Software Solutions 13.0 17.508/22/2010 Inneractive Ltd. Mobile Content Provider 2.3 2.307/30/2010 BoxTone, Inc. Mobile Software Solutions 7.5 29.507/20/2010 Advanced Mobile Solutions Worldwide, Inc. Mobile Media Services 0.1 0.107/14/2010 Handmade Mobile Entertainment Limited Mobile Entertainment Services 10.0 14.007/12/2010 Adsmarket, Ltd. Mobile Advertising 17.0 48.007/11/2010 E-Trader Group Ltd. Mobile Software Solutions 3.0 5.007/08/2010 OpenFeint Inc. Mobile Gaming 8.0 115.707/06/2010 Jiubang Digital Technology Co., Ltd. Mobile Content Provider 55.0 67.007/02/2010 SteelCloud Inc. Mobile Software Solutions 2.0 11.907/02/2010 GameSalad Inc. Mobile Gaming 1.2 7.306/24/2010 Alinto SA Mobile Messaging Services 0.6 2.004/09/2010 hi5 Networks, Inc. Mobile Entertainment Services 14.0 37.004/06/2010 Beijing Moca World Technology Co., Ltd. Mobile Gaming 2.0 12.003/22/2010 TheMobileGamer Pte Ltd. Mobile Gaming 0.4 1.203/03/2010 Cloudmark Inc. Mobile Messaging Services 23.0 38.501/21/2010 Rixty, Inc. Mobile Software Solutions 1.2 1.201/11/2010 Webaroo Technology (India) Private Limited Mobile Messaging Services 12.0 33.1

Mean $16.3 $24.6Median $4.0 $7.9


Mobile Sector Performance as of 11/16/2011Subsector Relative Performance as of 11/16/2011

Mobile Index S&P 500 Index Dow Jones Industrial Average NASDAQ Composite Index3-Months -10.2% 5.5% 6.1% 6.5%6-Months -15.7% -5.4% -3.6% -3.5%1-Year 4.6% 6.7% 9.7% 8.8%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

S&P 500 Index Dow Jones Industrial Average NASDAQ Composite Index Mobile Index

Source: CapitalIQ

David SiemerCEO and Managing Director

(310) [email protected]

Ivan NikkhooManaging Director


Jonathan RothManaging Director


Martin LichaucoManaging Director+852 3051 8180

[email protected]

Siemer & Associates, LLC ● Member FINRA/SIPC ● www.siemer.com

Contact Information

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Documents

Siemer & Associates Mobile Report 3rd Qtr 2011