JEGI Press Release

JEGI Q3 2011 M&A Overview M&A Activity Flat with 2010 Levels; Deal Value Up 10% Due to Larger Deals in the Quarter
New York, NY October 3, 2011 Mergers and acquisitions in the media, information, marketing and technology sectors during the first three quarters of 2011 sustained the pace set in 2010. Approximately 700 announced transactions reached $35.3 billion in transaction value through Q3 2011, a 10% increase over the same period in 2010, according to The Jordan, Edmiston Group, Inc. (JEGI) (www.jegi.com), the leading independent investment banking firm specializing in M&A advisory services across these core markets. Strategic buyers continue to set the tone of the market as major corporations invest in growth and new revenue streams to offset competitive pressure and rapid shifts in their more traditional markets. Meanwhile, private equity firms have started to become more active in these sectors, transacting on a number of $100+ million deals. Interactive, marketing services and technology markets continue to account for the majority of deal activity and value, with the B2B and B2C Online Media & Technology, Marketing & Interactive Services, and Mobile Media & Technology sectors accounting for 73% of total deals and 63% of deal value in the first three quarters of 2011.

Deals of Size Major media and technology companies actively acquired in the third quarter of 2011, putting hundreds of millions of dollars to work in the marketplace, including the: Bloomberg acquisition of the Bureau of National Affairs, a provider of legal, tax, regulatory and environmental information services, for $992 million; Web.com acquisition of Network Solutions, a provider of website services, online marketing and domain name registration, from General Atlantic and Sonostar Capital Partners for $755 million, including assumed liabilities; Reed Elsevier acquisition of Accuity Holdings, an online subscription-based data provider for financial services companies, from Investcorp for $532 million; Pearson acquisition of Connections Education, an operator of online schools in 21 states, from Apollo Management for $400 million;

Adam Gross, Chief Marketing Officer 212-754-0710; adamg@jegi.com www.jegi.com

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IBM acquisition of Algorithmics, a provider of financial risk management solutions, from Fitch Group for $387 million ValueClick acquisition of Dotomi, a provider of online retargeting advertising for retailers, for $295 million; Ebay acquisition of Zong, which offers solutions that enable users to buy virtual goods inside social networks and online games using their cell phones, for $240 million; Experian acquisition of Medical Present Value, a provider of web-based revenue cycle solutions, data and analytics for the healthcare industry, for $185 million; and Glam Media acquisition of Ning, a social media platform, for $150 million in stock. Private equity firms are also becoming more active and investing in larger deals across the media, information, marketing services and technology sectors, including the: Kohlberg Kravis Roberts, Silver Lake and Technology Crossover Ventures $2.25 billion investment in Go Daddy, an Internet domain registrar and web hosting company; Permira acquisition of Renaissance Learning, a provider of education software, for $445 million; One Equity Partners acquisition of APAC Customer Services, a provider of outsourced customer care services and solutions, for $436 million; Exponent Private Equity acquisition of BBC Worldwide, a publisher of consumer magazines in the UK, for $198 million; Great Hill Partners acquisition of Plimus, a provider of a SaaS solution to power e-commerce for retailers, for $185 million; Providence Equity Partners acquisition of George Little Management, a leading US trade show producer, from Daily Mail & General Trust for $173 million (JEGI advised DMGT on this transaction); and New Mountain Capital acquisition of SNL Financial, a provider of information services across a number of industries (price not publicly disclosed). Active Quarter for JEGI JEGI had a very active third quarter of 2011, announcing eight transactions (JEGI represented the seller in each acquisition): Sale of George Little Management to Providence Equity Partners (highlighted above); Sale of online ad exchange AdJug to IgnitionOne, a unit of Dentsu; Sale of Focus Research, a provider of online lead generation for IT vendors, to Ziff Davis Media; Sale of Australia-based online parenting portal Kidspot to News Corporation (JEGI co-led the sale with Lexicon Partners of Australia); Sale of Hearst Corporations Cycle World, the #1 enthusiast media property for the motorcycle industry, to Bonnier Corporation; Sale of EmPower Research, a provider of social media insights, to Genpact (JEGI co-led the sale with Veda Partners of India); Adam Gross, Chief Marketing Officer 212-754-0710; adamg@jegi.com www.jegi.com

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Sale of social media agency Big Fuel to Vivaki, a unit of Publicis Groupe; and Sale of Sequence Personal, a content personalization platform, to R.R. Donnelley. Looking Ahead

The media and technology markets continue to evolve at a torrid pace, and companies are increasingly seeking interactive, marketing services, mobile and technology assets to drive growth and provide new revenue streams. Innovative, high growth business models that complement companies existing revenue drivers will be highly sought, at premium valuations. Meanwhile, private equity firms have $376 billion of cash (according to the latest report from Cambridge Associates) sitting on the sidelines and ready to be put to work. At the same time, there were a number of media company acquisitions by private equity firms in the mid-2000s, and many of these portfolio companies will likely be coming to market in the next 12 months. JEGI expects that a diverse and active pool of buyers with cash on their balance sheets plus a steadily improving debt financing market, especially for companies with more than $10 million of EBITDA, will work together to drive vigorous M&A interest for a growing number of companies planning to come to market in the next year. JEGIs active pipeline of new deal opportunities also suggests that M&A will continue at a healthy pace across these sectors through the fourth quarter of 2011 and into 2012.

Adam Gross, Chief Marketing Officer 212-754-0710; adamg@jegi.com www.jegi.com

JEGI Press Release

M&A Highlights through Q3 2011

Transactions for the b2b online media and technology sector increased 10% to 54 announced deals in the first three quarters of 2011 vs. the same period in 2010. Deal value spiked nearly 300%, driven by Ebays acquisition of GSI Commerce for $2.4 billion in Q1 and a $2.25 billion buyout of Go Daddy in Q3 by KKR, Silver Lake, and Technology Crossover Ventures. Other notable Q3 deals included the sale of OpenLane, an e-commerce platform for the auto market, to KAR Auctions for $210 million; Great Hill Partners purchase of Plimus for $115 million; the acquisition of Multifamily Technology Solutions, an Internet listing service for rental properties, by RealPages for $74 million; and the acquisition by American Express of Sometrics, an enabling technology for in-game payments and advertising, for $30 million. The b2c online media and technology sector saw active M&A in the first three quarters of 2011, with 182 transactions at a total value of $6 billion, on pace with the same period in 2010. Google was the most active acquirer of b2c online media properties in 2011, with three announced deals, including the acquisitions of DailyDeal, a German daily deals site, for an estimated $150 million; Zagat, the restaurant guide and reviews platform; and Dealmap, a startup that aggregates offers from GroupOn and similar sites, for $100 million. Other notable deals in Q3 included: Glam Medias acquisition of Ning for $150 million; Quepasas acquisition of MyYearbook, a social networking site, for $100 million; and Renrens acquisition of 56.com, an online video sharing site, for $80 million. M&A activity for the business-to-business media sector was nearly non-existent in the third quarter of 2011 and showed only 11 deals for the January-September period, at a total value of $38 million. In Q3, Penton Media sold American Printer magazine to OutputLinks Communications Group; and CCI Media acquired the CabinetMakerFDM Woodworking business unit from Watt Publishing. Larger deals continue to be consummated in the consumer magazines sector, especially internationally, driving total deal value for this sector to $2.2 billion in 2011 YTD vs. $131 million during the first three quarters of 2010. Earlier this year, Hearst Corporation announced the acquisition of Lagardres magazine portfolio for $651 million. Then, in Q2, TPG Capital acquired Primedia, which provides home and apartment guides, from Kohlberg Kravis Roberts for $525 million. In Q3, another private equity firm made a foray into the consumer magazine market with Exponent Private Equitys $198 million buyout of BBC Worldwide, one of the largest publishers of consumer magazines in the UK. The database and information services sector has seen a sharp decline in the number of deals announced (down 35%) and deal value (down 51%) in the first three quarters of 2011 vs. the same period of 2010. However, the sector has seen more than $5 billion of transactions in 2011. In Q3, notable deals included: Bloombergs acquisition of the Bureau of National Affairs for nearly $1 billion; Reed Elseviers acquisition of Accuity Holdings from Investcorp for $532 million; and New Mountain Capitals acquisition of SNL Financial. The education information, technology and training sector saw 48 transactions announced at a total value of $2.4 billion in the first three quarters of 2011, marking a 17% increase in the number of deals, Adam Gross, Chief Marketing Officer 212-754-0710; adamg@jegi.com www.jegi.com

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but a 23% decline in deal value vs. the same period of 2010. Notable deals in Q3 included: Permiras acquisition of Renaissance Learning for $455 million; Pearsons acquisition of Apollo Managements Connections Education for $400 million; Apollo Groups acquisition of Carnegie Learning, a program that offers computer based math tutoring, for $75 million; and VSSs Cambium Learning Groups acquisition of Class.com, a provider of online learning solutions for both students and adults. The exhibitions and conferences sector saw 18 transactions in 2011 YTD, matching the number of deals in the first three quarters of 2010. However, deal value for the sector more than tripled in 2011, to a total of $371 million, led by Providence Equity Partners $173 million buyout of George Little Management, the US trade show platform of Daily Mail & General Trust. Other notable Q3 deals included: NrnbergMesse North Americas acquisition of InterBev from the American Beverage Association; two international acquisitions in the energy sector by Reed Exhibitions All Energy Show and The Santos Offshore Oil & Gas Expo; and 1105 Medias buyout of the School & College Building Expo from JD Events. In the first three quarters of 2011, the number of deals in the healthcare information and technology sector was relatively flat vs. the same period of 2010, but deal value increased 35%. There were a few larger deals earlier in the year, including CCMPs estimated $500 million buyout of Medpace; and inVentive Healths acquisition of i3 for $400 million. In Q3, notable deals included: One Equity Partners buyout of APAC Customer Services for $436 million; and Experians $185 million acquisition of Medical Present Value. The marketing and interactive services sector continues to be the most active in both number of deals and deal value, with 212 transactions announced at a total value of $8.8 billion in 2011 YTD, representing 18% and 24% respective increases over the same period of 2010. The largest transactions of Q3 included Web.coms acquisition of Networked Solutions for $755 million; IBMs acquisition of Algorithmics for $387 million; and ValueClicks acquisition of Dotomi for $295 million. The numerous other notable deals in Q3 across a wide array of marketing services included the: Kantar acquisition of GMI, a research technology and consumer panels firm, for $90 million; Nice Systems acquisition of Fizzback Group, an on-demand solution that drives customer engagement at the point-of-experience, in real-time, for $80 million; DG FastChannel acquisition of EyeWonder, a provider of interactive advertising products and services, for $66 million; Vivaki acquisition of social media agency Big Fuel (JEGI represented Big Fuel in this transaction; price not publicly disclosed); Salesforce.com acquisition of Assistly, enables clients to interact with consumers in real-time, for $50 million; Augme Technologies acquisition of Hipcricket, a mobile marketing and advertising firm, for $44 million; Innovation Interactive acquisition of online advertising exchange AdJug (JEGI represented AdJug in this transaction; price not publicly disclosed);

Adam Gross, Chief Marketing Officer 212-754-0710; adamg@jegi.com www.jegi.com

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Genpact acquisition of EmPower Research, a provider of social media insights (JEGI co-represented EmPower Research in this transaction; price not publicly disclosed); and InModis acquisition of Sprout, an easy-to-use platform for building HTML5-based ads, for an estimated $35 million. Even though deal activity declined 10% in 2011 YTD vs. the first three quarters of 2010, deal value in mobile media and technology rose 43% year-over-year, to $1.7 billion, driven by Ebays $240 million acquisition of Zong in Q3, as well as DeNAs acquisition of ngmoco, a mobile game developer, for $400 million in Q2. A number of large strategic media and technology companies were active acquirers in the mobile market in Q3, including: Amazon, which acquired app developer Pushbutton; Arbitron, which acquired Zokem, a mobile measurement and analytics company; and two acquisitions by Zynga Five Mobile, a mobile games software provider; and Astro Ape, a mobile games studio.

About JEGI The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY is the leading independent investment bank for the media, information, marketing services and technology sectors. Since 1987, JEGI has completed more than 500 high-profile M&A transactions for global corporations; middle-market and emerging companies; entrepreneurs; families; and private equity and venture capital firms. For more information, visit www.jegi.com.

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Adam Gross, Chief Marketing Officer 212-754-0710; adamg@jegi.com www.jegi.com