MegaVendo

GNCT

Global Networks Classified Technologies

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The Online Classifieds Market is Boomingas the Younger Generation is Searching

Online

• One of the increasing factors of the transition to the online classifieds is the Generation Effect:

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…Booming Revenues are the Proof in the Pudding…

• Classified Ventures: US focused; online classified advertising categories of automotive, rentals and real estate (through Cars.com, Apartments.com, and HomeGain.com). One of the 5000 fastest growing companies in America in 2011, with 2010 figures being 17 million UU/month and 225 Million Euros of revenue (http://paidcontent.org/list/page/the-most-successful-digital-companies/P30/)

• Zillow: A NASDAQ public company, running a real-estate classified web site in the US Revenues: 17 Million USD (2009), 30 million USD (2010), 66 million USD (2011), 23 million USD (Q1 2012). Market value – 1.05B USD (http://finance.yahoo.com/q/is?s=Z+Income+Statement&annual)

• Schibsted Classified Media: A European based company, with classified web sites in Europe (including Spain) Revenues: 186 Million Euros (2009), 213 million Euros (2010) (http://www.schibsted.com/Annual-Report-2010/Operations/Online-Classifieds/Schibsted-Classified-Media/)

• Trader Media Group: Operating mainly in the UK (AutoTrader.co.uk) with ~ 10 million UU/month. Revenues: 156 million Euros (2009), 168 million Euros (2010) and 207 million Euros (2011) (http://ar2011.tradermediagroup.com/overview/at-a-glance)

GNCT’s system scans all the territory’s major classifieds sites

All the ads are reformatted and indexed

Users can now search all the classified ads in one convenient site, for free

MegaVendo is a part of an internet technology group established in 2003, engaging in various online activities, and development of advanced internet and cellular technologies

MegaVendo: A World Leader Classifieds Aggregator

An ad scanning and aggregation technology turns MegaVendo to the largest classifieds site in every country, from day one, in term of number of ads

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The largest inventory attracts the largest number of users

MegaVendo enables users to get to the right ads from tens of different classifieds sites at once - in one comprehensive, fast and intuitive display

Will users choose to continue spending hours searching through dozens of classifieds site themselves?

Maybe… If they would prefer an easier way to search – they’d go MegaVendo

Revenue model based on commercial advertising means that the service to the common user is totally free

Largest number of ads + largest number of users = largest classified website

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The technology and business method behind MegaVendo is tested and proven

Following 3 years of development and 3 million dollars of investments, we had launched our classifieds platform, which achieved leadership in five fronts:

•Scanning•Unique & Innovative interface•Smart Monetization tools•Top level SEO expertise•Cellular

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Business Models

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A broad array of models

maximizes monetization

Go To Market

MegaVendo shall serve as the international brand destination site for classifiedsCountry-localized MegaVendo sites planned for each territory

MegaVedno’s prime destination site shall include access to all local sites, and autonomous services are to be provided

Each country approached independently or jointly with a leading local media partner

Teaming approach - very low risk on both parties:

• Ops and maintenance - GNCT's responsibility

• Traffic generation + selling advertising space – Local media partner responsibility

• Revenue split: local media gains sales commission (% from the gross revenue), and the rest is equally divided

Our partner brings the traffic – We do everything else

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Recently launched: Telefonica - MegaVendo

First teaming approach: In 2011 – Telefonica / Terra in Spain

MegaVendo.es is the local Spanish MegaVendo brand site (www.megavendo.es )

Collects classifieds ads from 17 leading classifieds sites in Spain – largest in Spain !

In MegaVendo.es Terra is responsible to generate traffic to the site, and GNCT is

responsible for everything else, while maintaining the strong MegaVendo brand

Our partner brings the traffic – We do everything else

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…and we project significant revenues

section Year 1 Year 2 Year 3

Vehicles 1.1 3.2 4.9

Real estate 0.8 2.6 3.8

Real estate (new projects) 0.5 3.3 4.7

Second hand items 1.1 1.9 3.6

Career seeking - 3.6 6.4

Total 3.5 14.4 23.4

• Forecast is based on traffic of one million monthly unique users in the first two years, and 3 million monthly unique users in the third year

• Figures are in millions of Euros

Revenue Forecast (Spanish Market)

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We are currently working to expand our operations around the globe…

Country Status

IsraelAdvanced Negotiation

w/leading online operator

SpainLaunched with a

leading online operator

Philippines Preliminary Negotiation

Russia Preliminary Negotiation

Serbia Advanced Negotiation

USA Preliminary Negotiation

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We offer flexible partnership models that adjust to our partners risk / reward profile

We target local partners with the ability to leverage significant traffic figures and direct it to our joint site

In an affiliate partnership model, we will provide the platform, the site, the interface, ad scanning, site hosting, customer support, maintenance and upgrades and the local partner will generate the traffic – this implies very limited effort for the partner. All costs involved in building and maintaining the local site are be Global Networks responsibility.

Alternatively, we are open to discussing the establishment of local Joint Ventures or even licensing our technology platform on a white label model

Thank You

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