Financial Performance & Scoring -- © 2006 Gaskins IPO Desktop/IPOdesktop

Pre-IPO analysis, grading & scoring -- updated

. With Oct 27 closing prices for Home Inns & Hotel (HMIN) and Optium (OPTM)

. Plus Gatehouse Media (GHS) - compare & contrast based on Oct 25 closing prices

. Business Model Rating Criteria

A = high growth market, potential leader; B = more competitive market; C='public venture capital'

. Calculations

. IPO Price to annualized Sales Ratio -- (Price / Sales)

Numerator

Denominator

IPO market capitalization…

Annualized Sales (last six month's revenues times 2)

(post-IPO # of shares times mid-point of IPO price range)

. IPO Price to annualized Earnings (loss) -- (Price / Earnings)

Numerator

Denominator

IPO market cap

Annualized Earnings (loss) from the last quarter

=========================================================================

SEARCH BY COMPANY

In your browser use 'Edit/Find' to search for companies

for analysis

scheduled below

=========================================================================

Summary ratios for the week of Oct 23 (IPOs not previously analyzed, scored & graded)

(P/E ratios based on annualizing recent results, see notes)

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Achillion Pharma ACHN

$222

n/a

-12

2.9

3.2

30%

infectious disease treatments: C, 6

Post-IPO shrs:15mm

Cadence Pharma CADX

$336

n/a

-5

3.4

3.4

21%

drugs for use in hospitals: C, 6

Post-IPO shrs:28mm

Catalyst Pharma CPRX

$192

n/a

-74

2.5

2.5

31%

prescriptions drugs for addiction: C, 6

Post-IPO shrs:16mm

Douglas Emmett (DEI)

$3,300

7.0

-122

1.2

1.2

33%

REIT: B-, 8

fully diluted including operating partnership interests

Post-IPO shrs:165mm

Eagle Rock EnergyEROC

$851

1.6

-17

2.8

5.2

29%

processing/selling natural gas in TX & LA: C+, 6

Post-IPO units:42.55mm

GateHouse Media (GHS)

$587

1.5

-33

1.4

-1.1

33%

print/online media publishing services: C, 6

Post-IPO shrs:34.5mm

Home Inns & Hotel HMIN

$354

5.9

52

4.8

4.8

25%

China economy hotels: B, 8

Post-IPO shrs:32mm

Optium (OPTM)

$355

2.5

59

4.5

3.9

21%

optical subsystems for communications: B-, 8

Post-IPO shrs:24.5mm

=========================================================================

SEARCH BY COMPANY

In your browser use 'Edit/Find' to search for companies

for analysis

scheduled below

=========================================================================

Achillion Pharma

ACHN, C, 6

infectious disease treatments

Post-IPO shrs:15mm

New Haven, CT

2003

2004

2005

June 06*

IPO Mkt

Rev ($mm)

n/a

$1

$9

$4

Cap (mm)

Income (loss) $mm

-$16

-$18

-$13.6

-$9

$222

*for the six months ended June 30

@$15

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Achillion Pharma ACHN

$222

n/a

-12

2.9

3.2

30%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

0

2

6

Business

. Discovery, development and commercialization of innovative treatments for infectious diseases

. Within the anti-infective market, currently concentrating on the development of antivirals and

antibacterials.

Collaboration

. Majority of revenue recognized to date has been derived from a collaboration with Gilead

Sciences to develop compounds for use in treating chronic hepatitis C.

. Through June 30, 2006, has recognized approximately $13.2 million in revenue from the

collaboration with Gilead Sciences.

Competition

Elvucitabine, HIV

Elvucitabine, if approved, will compete with the NRTIs currently marketed for treatment of HIV

infection, including: Epivir (3TC), Retrovir (AZT), Ziagen (abacavir), Combivir (3TC + AZT),

Trizivir (3TC + AZT + abacavir) and Epzicom (3TC + abacavir) from GlaxoSmithKline, Hivid

(ddC) from Hoffman-La Roche, Emtriva (FTC), Viread (tenofovir) and Truvada (FTC +

tenofovir) from Gilead Sciences and Videx EC, Videx (ddI) and Zerit (d4T) from Bristol-Myers

Squibb. In addition, elvucitabine may compete with other NRTIs currently under development for

HIV by companies such as Avexa, Medivir, Pharmasset and Koronis. Other classes of drugs are

also under development for the treatment of HIV infection by companies such as Abbott,

Boehringer Ingelheim, Johnson & Johnson, Merck, Panacos, Pfizer, Roche, Schering-Plough,

Trimeris and Vertex.

ACH-806, HCV

ACH-806 (also known as GS 9132), if approved, will compete with drugs currently approved for

the treatment of hepatitis C, the interferon-alpha based products from Roche (Pegasys and

Roferon-A) or Schering-Plough (Intron-A or Peg-Intron) and the ribavirin based products from

Schering-Plough (Rebetrol), Roche (Copegus) or generic versions sold by various companies. In

addition, ACH-806 may compete with the interferon and ribavirin based drugs currently in

development such as Valeant’s ribavirin analog (Viramidine) and Human Genome Sciences’

Albuferon. Other products are also under development for the treatment of hepatitis C by

companies such as Abbott, Anadys, Arrow Pharmaceuticals, Boehringer Ingelheim, Bristol-Myers

Squibb, Gilead Sciences, GlaxoSmithKline, Human Genome Sciences, Idenix Pharmaceuticals,

Intermune, Johnson & Johnson, Medivir, Merck, Novartis, Panacos, Pfizer, Pharmasset, Roche,

Schering-Plough, Trimeris, Valeant and Vertex.

ACH-702, Anti-MRSA Antibiotic

ACH-702, if approved, will compete with drugs currently marketed for the treatment of serious

gram-positive nosocomial infections including: vancomycin (multiple generic forms), Cubicin

(daptomycin) by Cubist Pharmaceuticals, Zyvox (linezolid) by Pfizer and Synercid (dalfopristin +

quinupristin) by King Pharmaceuticals. In addition, ACH-702 may compete with other drugs

currently under development for the treatment of nosocomial gram-positive infections including:

dalbavancin in development by Pfizer, telavancin from Theravance, oritavancin by Intermune,

doripenem by Johnson & Johnson, ceftobiprole by Basilea and Johnson & Johnson, iclaprim by

Arpida and garenoxacin by Schering-Plough. We may also compete with the following companies

that have a strategic interest in the discovery, development and marketing of drugs for the

treatment of bacterial infections: Abbott, Aventis, Bristol-Myers Squibb, Cubist,

GlaxoSmithKline, Merck, Novartis, Replidyne, Roche and Wyeth.

Intellectual property

. ACHN’s elvucitabine patent portfolio currently consists of seven issued U.S. patents, nine

associated issued non-U.S. patents, 25 associated pending non-U.S. patent applications, one

pending U.S. non-provisional application and two pending PCT applications.

. ACHN either owns or holds exclusive worldwide sublicenses from Vion Pharmaceuticals of

patents owned by Yale University or exclusive worldwide licenses from Emory University to

these patents and patent applications. The issued patents and patent applications, if issued, will

expire between 2013 and 2026. The issued U.S. patents contain claims directed to the compound,

method of use and process for synthesis of elvucitabine, which claims expire in 2013, 2013 to

2014, and 2023, respectively. The issued foreign patents contain claims directed to the method of

use of elvucitabine and expire in 2014.

. ACHN’s hepatitis C patent portfolio currently consists of two U.S. provisional patent

applications, nine pending U.S. non-provisional applications, one associated issued non-U.S.

patent, 68 associated pending non-U.S. patent applications and five pending PCT applications.

These patent applications, if issued, will expire between 2023 and 2026. The patent applications

contain claims directed to compounds, method of use, process for synthesis, mechanism of action

and research assays.

. In connection with the November 2004 collaboration with Gilead Sciences, ACHN granted a

worldwide exclusive license to Gilead Sciences for past, present and future patents, patent

applications and patent filings with claims directed to ACH-806, compounds chemically related to

ACH-806, any additional compounds which inhibit HCV via a mechanism similar to that of ACH

806, and intellectual property relating to the mechanism of action of ACH-806. Gilead Sciences

has a right to present and discuss with us its capabilities to participate in the development and

commercialization of new HCV compounds.

. ACHN’s antibacterial patent portfolio currently consists of six pending U.S. patent applications,

one pending U.S. provisional patent application, 14 associated pending non-U.S. applications and

five pending international patent applications filed under the Patent Cooperation Treaty. These

patent applications, if issued, will expire between 2024 and 2026. The patent applications contain

claims directed to compounds, method of use, process for synthesis and mechanism of action.

. ACHN’s HIV capsid patent portfolio currently consists of four pending U.S. patent applications,

one pending international patent application filed under the Patent Cooperation Treaty and ten

associated non-U.S. patent filings. These patent applications, if issued, will expire between 2022

and 2026. ACHN has obtained an exclusive worldwide license to these patent applications from

the University of Maryland Baltimore County.

Use of $61mm in IPO proceeds

• $26.3 million to complete the current phase II clinical trials of elvucitabine and to further its

clinical development into phase III clinical trials, including approximately $3.7 million of external

costs related to current phase II clinical trials.

• $3.2 million to support our share of ACH-806 development costs pursuant to the collaboration

with Gilead Sciences through the proof-of-concept stage;

• $1.5 million to complete the preclinical development of ACH-702, followed by approximately

$11.5 million to fund further clinical development of ACH-702; and

• $9.3 million to support research activities over the next 12 months on other HIV, chronic

hepatitis C and antibacterial drug candidates.

‘-- remaining $9.3 million of the net proceeds of this offering:

• to expand other research and development programs to identify additional drug candidates for

the treatment of HIV infection, chronic hepatitis C and bacterial infections; and

• to fund working capital, make capital expenditures, hire additional personnel necessary for

operating as a public company and other general corporate purposes

======================================================

Cadence Pharma

CADX, C, 6

drugs for use in hospitals

Post-IPO shrs:28mm

San Diego, CA

2005

June 06*

IPO Mkt

Income (loss) $mm

-$7.8

-$36

Cap (mm)

*for the six months ended June 30

$336

@$12

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Cadence Pharma CADX

$336

n/a

-5

3.4

3.4

21%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

0

2

6

Business

. Focused on in-licensing, developing and commercializing proprietary product candidates

principally for use in the hospital setting

. Since inception in 2004, has in-licensed rights to two Phase III product candidates, both of which

have been studied in prior Phase III clinical trials conducted by licensors.

. Has in-licensed the exclusive U.S. and Canadian rights to IV APAP, an intravenous formulation

of acetaminophen that is currently marketed in Europe for the treatment of acute pain and fever by

Bristol-Myers Squibb Company

. CADX believes that IV APAP is the only stable, pharmaceutically-acceptable intravenous

formulation of acetaminophen.

Use of $65mm in IPO proceeds

To fund clinical trials and other research and development activities, and to fund working capital,

capital expenditures and other general corporate purposes

===========================================================

Catalyst Pharma CPRX

CPRX, C, 6

prescriptions drugs for addiction

Post-IPO shrs:16mm

Coral Gables, Florida

2003

2004

2005

June 06*

IPO Mkt

Income (loss) $mm

($0.4)

($0.5)

-1.8

-$1

Cap (mm)

*for the six months ended June 30

$192

@$12

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Catalyst Pharma CPRX

$192

n/a

-74

2.5

2.5

31%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

0

2

6

Business

. Development and commercialization of prescription drugs for the treatment of addiction. The

initial product candidate is CPP-109, which is based on the chemical compound gamma-vinyl

GABA, commonly referred to as vigabatrin.

. Intends to begin in the first quarter of 2007 a U.S. Phase II clinical trial evaluating CPP-109 for

the treatment of cocaine addiction.

. Also intends to develop CPP-109 to treat methamphetamine addiction..

Use of $32mm in IPO proceeds

To complete the clinical studies and non-clinical studies that CADX believes, based on currently

available information will be required for to file an NDA for the use of CPP-109 to treat cocaine

addiction and methamphetamine addiction

==================================================

Douglas Emmett

DEI, B-, 8

REIT

Post-IPO shrs:165mm

Santa Monica, CA

2003

2004

2005

June 06*

IPO Mkt

Rev ($mm)

$315

$320

$453

$236

Cap (mm)

Unrealized derivative income (loss)

$7

-$36

$3,300

Operating income (loss) %

6.0%

-7.2%

@$20

Net income

$8

-$57

($61)

-$14

Net income %

-13.5%

-5.7%

EBITDA %

68.0%

69.5%

Funds from operations ($mm)

$132

$79

Funds from operations %

29.1%

33.5%

Total number of properties

43

45

47

55

See "Strong Internal Growth Prospects" below, DEI is not the usual REIT

Note: 2003 & 2004 is the historical predecessor; 2005 and 2006 proforma accounting for the IPO

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Douglas Emmett (DEI)

$3,300

7.0

-122

1.2

1.2

33%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

3

2

2

1

8

Compare & Contrast

Yield

Maguire Prop NYS:MPG

$1,950

4.5

-50

4.0

6.5

3.9%

Douglas Emmett (DEI)

$3,300

7.0

-122

1.2

1.2

3.5%

Note: shares outstanding:

. 165 mm shares of common stock & operating partnership units to be outstanding post-IPO

. page 52 in the S-11/A filed October 10, 2006

. Expected yearly payout of $115.5 million, compare with annualized 'funds from operations' above

Book value versus MPG

. Notice the book value discount of DEI versus MGP, which is in large part is due to different acquisition dates

. We expect DEI's payout to increase as the growth plan is implemented, see below

Dividend Policy

. DEI intends to pay cash dividends on $0.175 per share for a full quarter

. On an annualized basis, this would be $0.70 per share, or an annual dividend rate of 3.5%

REIT Business

. Post-IPO will be one of the largest owners and operators of high-quality office and multifamily

properties in Los Angeles County, California and will have a growing presence in Honolulu,

Hawaii.

Locations

. High-end properties located in high traffic locations near two very high traffic, major freeway

interchanges, plus Century City in Los Angeles: (1) Brentwood, Westwood (near the 405/10

interstate freeway intersection); (2) Sherman Oaks, Encino, at the 101/405 freeway intersection

. DEI’s properties are concentrated in nine premier Los Angeles County submarkets—Brentwood,

Olympic Corridor, Century City, Santa Monica, Beverly Hills, Westwood, Sherman Oaks/Encino,

Warner Center/Woodland Hills and Burbank—as well as in Honolulu, Hawaii.

Properties could not be reproduced in today’s markets on a cost-competitive basis

. According to Eastdil Secured, most of DEI’s Los Angeles office portfolio and West Los Angeles

multifamily properties could not be reproduced under current zoning and land-use regulations. .

. Furthermore, given current market rents, construction costs and the lack of competitive

development sites, Eastdil Secured estimates that DEI’s portfolio could not be replicated on a

cost-competitive basis today.

Portfolio & properties

. As of June 30, 2006, DEI’s office portfolio consisted of 46 properties with 11.6 million rentable

square feet, and the multifamily portfolio consisted of nine properties with a total of 2,868 units

. As of such date, the office portfolio was 93.1% leased, and multifamily properties were 99.6%

leased.

. DEI’s office portfolio contributed 84.7% of annualized rent as of June 30, 2006, while the

multifamily portfolio contributed 15.3%.

. As of June 30, 2006, the Los Angeles County office and multifamily portfolio contributed 90.8%

of annualized rent, and DEI’s Honolulu, Hawaii office and multifamily portfolio contributed 9.2%.

Strong Internal Growth Prospects

DEI believes it will be able to achieve significant internal cash flow growth over time through

rollover of existing leases to higher rents, the lease-up of vacant space and fixed annual rental rate

increases included in DEI’s leases.

• As of June 30, 2006, the average current asking rents in the Los Angeles County office portfolio

represented a 14.6% premium to DEI’s average in-place rents, and the average current asking rents in

the West Los Angeles multifamily portfolio represented a 32.4% premium to DEI’s average in

place rents, due largely to historical rent control laws, which now allow landlords to increase rents

to market rates as tenants vacate. As of June 30, 2006, the average current asking rents in DEI’s

Honolulu office portfolio represented a 2.2% premium to average in-place rents, and the average

current asking rents in DEI’s Honolulu multifamily portfolio represented a 4.0% premium to

DEI’s average in-place rents, excluding income-restricted units.

• In addition, DEI also believes that it is well positioned to achieve internal growth through the

lease-up of existing vacant space in its portfolio. For example, the Warner Center Towers,

Trillium and Bishop Place properties were 88.5%, 71.6% and 88.4% leased, respectively, as of

June 30, 2006. Upon completion of repositioning efforts at these properties, DEI expects that it

will be able to significantly increase their occupancy. These properties represent 26.3% of DEI’s

office portfolio, based on rentable square feet.

• According to Eastdil Secured, Class-A office rents in DEI’s Los Angeles County submarkets are

expected to grow 10.0% in each of 2006 and 2007, with five-year forecasted annual rental growth

from 2006 to 2010 of 6.9%. With improving economic conditions in DEI’s submarkets, DEI has

generally been able to increase the fixed annual rental rate increases in leases from 3.0% per

annum to 4.0% per annum for most of the leases signed since January 2006.

Competition

Developers, owners and operators of office and commercial real estate

Use of $1.1 billion in IPO proceeds

. Contribution to operating partnership

. In addition, has entered into agreements to amend existing $1.76 billion secured financing with

Eurohypo AG and Barclays Capital upon consummation of this offering to increase the amount of

the term loan by $545.0 million at the existing interest rate of LIBOR plus 0.85%; and

. Has entered into an agreement to obtain, upon consummation of this offering, a $250.0 million

senior secured revolving credit facility, with an accordion feature that will allow DEI to increase

the availability thereunder by $250.0 million to $500.0 million, under specified circumstances

. DEI expects itssenior secured revolving credit facility will be undrawn at the closing of this

offering

=================================================

Eagle Rock Energy

EROC, C+, 6

processing/selling natural gas in TX & LA

Post-IPO units:42.55mm

Houston, TX

2005

June 06*

IPO Mkt

Rev ($mm)

$502

$260

Cap (mm)

Unrealized derivative income (loss)

$7

-$36

$851

Operating income (loss) %

6.0%

-7.2%

@$20

Net income

($1)

-$26

Net income %

-0.3%

-9.8%

$66

$40

Adjusted EBITDA %

13.1%

15.2%

*for the six months ended June 30

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Eagle Rock EnergyEROC

$851

1.6

-17

2.8

5.2

29%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

1

2

1

6

Distribution policy

. Intends to distribute $0.3625 per unit per complete quarter (or $1.45 per unit per year on an

annualized basis)

. 7.25% on an annualized basis, or $62mm ($1.45 per unit times 42.55mm units)

Business

. Limited partnership engaged in the business of gathering, compressing, treating, processing,

transporting and selling natural gas and fractionating and transporting natural gas liquids, or

NGLs.

. Assets are strategically located in three significant natural gas producing regions, the Texas

Panhandle, southeast Texas and Louisiana.

Growth by acquistion

Has grown significantly through acquisitions, including the acquisition of:

• Texas Panhandle Systems from ONEOK Texas Field Services, L.P.;

• Brookeland processing plant and system and Masters Creek System from Duke Energy Field

Services, L.P. and Swift Energy Corporation;

• pro-rata interests in the Indian Springs processing plant and Camp Ruby gathering system, both

of which are operated by an affiliate of Enterprise Products Partners, L.P.; and

• Midstream Gas Services, L.P.

West Panhandle System

. The primary purchaser of the residue gas and NGLs on the West Panhandle System for 2005 was

ONEOK Energy Services, which represented 98% of revenues on the system for the twelve

months ended December 31, 2005.

. EROC’s exchange with ONEOK Energy Services ended May 31, 2006, and EROC is currently

in the process of expanding its portfolio of marketing outlets.

. In addition, condensate produced on the system is trucked and purchased by SemCrude, L.P. and

Petro Source Partners, LP.

. EROC’s primary competition in this area is Duke Energy Field Services, L.P.

Residue gas after processing

. Residue gas remaining after processing is primarily taken in kind by the producer customers into

the markets available at the tailgates of the plants.

. Some available markets are Houston Pipeline Company, Natural Gas Pipeline Company and

Tennessee Gas Pipeline.

. EROC’s NGLs are sold to Duke Energy Field Services, L.P. and condensate production is sold to

SemCrude, L.P.

. EROC’s primary competition in this area includes Anadarko Petroleum and Enterprise Products

Partners, L.P.

Use of $231mm in IPO proceeds

• replenish $35.0 million of working capital that will be distributed prior to the consummation of

this offering to the existing equity owners of Eagle Rock Pipeline, L.P., which consist of

subsidiaries of Eagle Rock Holdings, L.P. and the Private Investors;

• satisfy the obligation to reimburse Eagle Rock Holdings, L.P. and the Private Investors for

$184.8 million of capital expenditures incurred prior to this offering related to the assets to be

contributed to upon the closing of this offering, as partial consideration for the contribution to us

of those assets; and

• distribute $11.0 million to Eagle Rock Holdings, L.P. as a cash distribution from Eagle Rock

Pipeline, L.P. in respect of arrearages on the subordinated and general partner units of Eagle Rock

Pipeline, L.P. owned by Eagle Rock Holdings, L.P.

=========================================================

GHS UPDATE based on first trading day's prices, Oct 25

Compare & Contrast -- dividend yield & book value

VALUATION RATIOS

IPO Mrkt

Dividend

Price /

Price /

Price

Cap (mm)

yield

BookValue

TangibleBV

Oct 25

GateHouse Media (GHS)

$741

6.0%

1.6

-1.2

$21.48

Lee Enterprises Inc. (LEE)

$1,290

2.7%

1.3

-3.9

$28.17

McClatchy Co. (MNI)

$3,520

1.7%

2.2

-10.5

$43.00

New York Times (NYT)

$3,310

3.1%

2.2

-10.8

$22.90

Washington Post (WPO)

$7,090

1.1%

2.6

6.9

$737.89

------------------------------------------------------

GateHouse Media

GHS, C, 6

print/online media publishing services

Post-IPO shrs:34.5mm

Fairport, NY

proforma

2005

June 06*

IPO Mkt

Rev ($mm)

results

$385

$194

Cap (mm)

Operating income %

10.4%

7.0%

$587

Debt interest expense %

10.9%

10.8%

@$17

Income ($mm)

-$10.5

-$9

Net income %

-2.7%

-4.5%

Adjusted EBITDA %

20%

17%

*for the six months ended June 30

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

GateHouse Media (GHS)

$587

1.5

-33

1.4

-1.1

33%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

1

2

1

6

Virtual road show insights omitted or not clear in the S-1 filing

Ongoing dividend policy

Revealed in the online road show but not clearly stated in the the S-1 filing

. 7.5% annual rate, $1.28 per share annual rate

. Grow that dividend through acquisitions & organic growth

What Fortress sponsorship means

. Costa Darras, a managing director of Fortress gave the first 7 minutes of the road show presentation

He is not a member of the board of directors or the management team -- unusual

. Darras essentially said 'Fortress thinks GHS is a good investment and we are not selling stock on the offering'

. The CEO also explicitly said "Fortress thinks GHS is a good investment"

. These kind of explicit "Fortress thinks…" statements were not in the S-1 filing

Who is Fortress?

. Fortress manages a $10.5 billion buyout fund, and has an additional $10bb under management

. Fortress has a very hot hand in the buyout business, and has taken six of its portfolio companies public,

see below. A Fortress endorsement, seal of approval, sponsorship, based on their track record,

almost guarantees a successful IPO.

Ave annual

Company, ticker, business

IPO Date

TotalReturn

return

. Newcaslte (NCT)

Oct-02

189%

47%

real estate investment & fince

. Global Signal (GST)

June-04

225%

96%

wireless communications

. Eurocastle (London:ECT)

June-04

180%

79%

European real estate fund

. Mapeley (London:MAY)

June-05

55%

42%

UK commercial real estate

. Brookldale Snr Lvng (BKD)

Nov-5

144%

165%

senior living facilities

. Aircastle (AYR)

Aug-6

29%

178%

leases jet aircraft

Business

. One of the largest publishers of locally based print and online media in the United States as

measured by number of daily publications.

. Provides local content and advertising in the small and midsize markets

. Portfolio of products, which includes 423 community publications and more than 230 related

websites, serves over 125,000 business advertisers and reaches 9 million people on a weekly basis.

. A key element of business and acquisition strategy is geographic clustering of publications to

realize operating efficiencies and provide consistent management

Core products

. 75 daily newspapers with total paid circulation of approximately 405,000;

. 231 weekly newspapers (published up to three times per week) with total paid circulation of

620,000 and total free circulation of approximately 430,000;

. 117 shoppers (generally advertising-only publications) with total circulation of approximately 1.5

million; and

. Over 230 locally focused websites, which extend our franchises onto the internet.

. Over the last 12 months, we created over 90 niche publications.

History & ownership

. Since 1998, acquired 249 daily and weekly newspapers and shoppers, including six dailies, 115

weeklies and 10 shoppers acquired in the Acquisitions, and launched numerous new products,

including 10 weekly newspapers.

. In May 2005 an affiliate of Fortress purchased GHS from Leonard Green & Partners, L.P.

. The transaction value was $527.0 million.

Industry decline

. According to the Newspaper Association of America, overall daily newspaper circulation,

including national and urban newspapers, has declined at an average annual rate of 0.8% during

the three year period from 2002 to 2004.

. This has put downward pressure on advertising and circulation revenues in the industry. We have

maintained relatively stable revenues due to our geographic diversity, well-balanced portfolio of

products, strong local franchises and broad customer base.

. GHS believes local advertising tends to be less sensitive to economic cycles than national

advertising because local businesses generally have fewer advertising channels through which to

reach their target audience.

Dividend policy

. Intends to pay dividends

. Subject to restrictive debt covenants

. GHS’s direct subsidiary, Holdco, may not pay dividends to GHS unless, after giving effect to any

such dividend payment, Holdco and its subsidiaries are in pro forma compliance with each of the

financial covenants under the 2006 Credit Facility, including an interest coverage ratio which must

be equal to or greater than 2 to 1 prior to January 1, 2008 and greater than 2.25 to 1 thereafter, a

fixed charge coverage ratio which must be equal to or greater than 1.1 to 1 and the total leverage

ratio which must be less than 6.25 to 1 prior to January 1, 2009, with the maximum total leverage

ratio decreasing by 0.25 on January 1, 2009 and each anniversary thereafter through January 1,

2013, at which time the maximum total leverage ratio will be 5 to 1.

Competition

Northeast Region

. In the Northeast Region, the Boston Globe, a metropolitan daily owned by the New York Times,

competes with us throughout eastern Massachusetts. In addition, competes in Massachusetts with

over 30 other weekly or daily newspaper companies (that publish a combined total of 16 dailies

and 50 weeklies), three major radio station operators, five local network television broadcasters,

one cable company and numerous niche publications for advertising revenues.

. GHS believes that its publications generally deliver the highest household coverage in their

respective markets.

Western Region

. The Western Region consists of 50 markets and GHS believes its publications are the dominant

print advertising media in the vast majority of these markets.

. In the Western Region, faces regional competition with three of GHS’s daily newspapers in

Illinois. Copley Newspapers have a daily newspaper in Galesburg, Illinois where they compete

with GHS’s daily in Monmouth and weekly in Galesburg. Copley also has a daily newspaper in

Peoria that competes regionally with us in the Pekin market. Lee Enterprises has the Southern

Illinoisan that is located in Carbondale. This is a regional newspaper that competes with GHS’s

dailies in Marion, Neton, DuQuoin.

. In all three of these cases, GHS believes its publications are the dominant local daily, but do

compete on a regional basis with the larger dailies. There are no local television affiliates in

GHS’s Western Region markets.

Northern Midwest Region

. In the Northern Midwest Region, the only significant competition comes from regional

television stations in Adrian, Michigan and Leavenworth, Kansas.

. Also faces competition from dozens of other competitors such as other local daily and weekly

papers and niche publications, as well as radio, other television stations, directories, direct mail

and non-local internet websites, but none of these have proven to be significant.

Southern Midwest Region

. In the Southern Midwest Region, major competition comes from regional daily newspapers,

specifically: The Advocate in Baton Rouge, Louisiana; The American Press in Lake Charles,

Louisiana; The Joplin Globe; and the Wichita Eagle.

. GHS believes its publications tend to be the dominant publications in their market.

Atlantic Region

. Daily newspapers owned by Gannett Publishing (The Star-Gazette in Elmira, NY; the Observer

Dispatch in Utica, NY; and the Chambersburg (PA) Public-Opinion) compete with GHS in several

markets in the Atlantic Region.

. Also faces competition from other major newspaper companies in several other Atlantic Region

markets: Schurz Communication’s Hagerstown (MD) Herald-Mail; Times-Shamrock Company’s

Scranton (PA) The Times-Tribune and Towanda Daily/Sunday Review; Ottoway’s Sunbury Daily

Item; Ogden-Nutting’s Williamsport Sun-Gazette; Newshouse Newspaper’s Syracuse Post

Standard; and CNHI’s Cumberland (MD) Times News.

Use of $179mm in IPO proceeds

. Repay $152.0 million debt incurred in connection with the Acquisitions

. For general corporate purposes.

. Affiliates of two of the underwriters, Goldman, Sachs & Co. and Wachovia Capital Markets,

LLC, are the lenders to be repaid.

=========================================================

Home Inns & Hotel Mgt

HMIN, B, 8

China economy hotels

Post-IPO shrs:32mm

Shanghai, China

2004

2005

June 06*

IPO Mkt

Rev ($mm)

(not in $)

$34

$30

Cap (mm)

Operating cost exp

90.1%

89.3%

83.1%

$354

Income ($mm)

$2.6

$3

@$11

Net income %*

6.6%

7.7%

11.5%

Total number of rooms, end of period

8,197

9,707

*for the six monthds ended June 30

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Home Inns & Hotel HMIN

$354

5.9

52

4.8

4.8

25%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

3

2

1

8

-------------------------------------------------------

Ratios adjusted for HMIN's opening day price of $22.70

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Home Inns & Hotel HMIN

$731

12.2

107

8.5

8.3

25%

-------------------------------------------------------

Summary:

. Demonstrated rapid growth

. Profitable

. High p/e multiple for what is essentially a commodity business, although somewhat branded

Business

. A leading economy hotel chain in China based on the number of hotels and the number of hotel

rooms as well as the geographic coverage of hotel chain.

. Develop and operate economy hotels across China under the "Home Inn" brand.

. Goal is to become the leading economy hotel chain in China

Two business models

Leased & operated, 98% of revenue

. Leases real estate properties on which HMIN develops and operate hotels

. As of June 30, 2006, the Home Inns hotel chain consisted of 63 leased-and-operated hotels in

operation with an additional 33 leased-and-operated hotels under development, and

Franchised & managed, 2% of revenue

. Franchises brand to hotel owners and manages these hotel properties.

As of June 30, 2006 had 19 franchised-and-managed hotels in operation with an additional 24

franchised-and-managed hotels under development, covering 40 cities in China.

Industry Background

. According to Euromonitor International, or Euromonitor, total sales in China's lodging industry

grew from RMB190 billion in 1999 to RMB264 billion in 2004.

. According to Euromonitor, hotels accounted for only 5% of total lodging outlets in China in

2004, with the remainder being guesthouses and other privately owned lodging outlets.

. Within the hotel sector of the lodging industry, the top ten brands accounted for 6% market

share in 2004 in terms of sales.

Industry growth factors

The growth in demand for economy hotel chains in China is being driven by both

. General factors, such as the growth of the Chinese economy and the growth of China's travel and

lodging industry, as well as more

. Specific factors, such as a rapid increase in the number of small-to medium-sized enterprises, or

SMEs, the growth of domestic tourism, the expansion of urban business centers and the

fragmentation of the lodging industry.

Competition

. Highly fragmented and competitive in China

. Compete primarily with other economy hotel chains, such as Jinjiang Star, Motel 168, Super 8

and Ibis, as well as various regional and local economy hotel chains.

. Also competes with two- and three-star hotels

. As compared to four- or five-star hotels, developing an economy hotel requires a smaller

commitment of capital and human resources, resulting in a relatively lower entry barrier

Taxation

. Incorporated in the Cayman Islands. Under the current law of the Cayman Islands, not subject to

income or capital gains tax. In addition, dividend payments are not subject to withholding tax in

the Cayman Islands.

. Home Inns Hong Kong is subject to a profit tax at the rate of 17.5% on assessable profit

determined under relevant Hong Kong tax regulations. To date, Home Inns Hong Kong has not

been required to pay profit tax as it had no assessable profit.

. Subsidiaries and affiliated entities in China are subject to a business tax at a rate of 5.5% on

revenues generated from providing services and related surcharges by various local tax authorities.

. In addition, subsidiaries and affiliated entities in China are generally subject to the standard

enterprise income tax rate, currently 33%. However, some subsidiaries are subject to lower

enterprise income tax rates due to the preferential tax treatments granted by the local tax

authorities. For example, the wholly owned subsidiary, Hemei Hotel Management Company, has a

reduced 15% enterprise income tax rate due to its place of incorporation and operation in the

Pudong New District of Shanghai.

. Various local tax authorities in China have provided financial subsidies in the form of certain tax

refunds to us. However, these tax authorities could reduce or eliminate any or all of these financial

subsidies at any time in the future.

Auditors

Consolidated financial statements as of December 31, 2004 and 2005, and for each of the three

years in the period ended December 31, 2005, have been audited by PricewaterhouseCoopers

Zhong Tian CPAs Limited Company, headquartered in Shangha, China.i

Use of $47mm in IPO proceeds from sale of 4.9mm ADSs

(shareholders intend to offer 3mm ADSs)

o US$35.0 million to fund the expansion of hotel chain and the improvement of existing hotel

properties;

o US$7.5 million to repay debt to BTG

o balance to fund working capital and for other general corporate purposes

=======================================================

OPTM adjusted to first day's closing price:

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

Price

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

27-Oct

Optium (OPTM) @ $19.6

$480

6.9

240

4.1

4.5

$19.60

October 27, 2006 IRO price, $17.50

NOTE: see how the p/e was computed below

---------------------------------------------------

Optium (OPTM)

OPTM, B-, 8

optical subsystems for communications

Post-IPO shrs:24.5mm

Chalfont, PA

2004

2005

2006

IPO Mkt

Rev ($mm)

$21

$37

$70

Cap (mm)

Gross profit %

23.4%

23.8%

25.2%

$355

Acquired in-process R&D

$11

@$14.5

Income ($mm)

-$6.7

-$1.5

-$8

Net income %*

-32.7%

-4.1%

-11.7%

Taking out acquired in-process R&D, which actually is a one time acquisition cost

Pre-tax Income ($mm)

$3

Pre-tax Net income %*

4.5%

Income assuminga 35% tax rate

$2.0

Note: July 31 fiscal year

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Optium (OPTM) @$14.50

$355

5.1

178

3.5

3.9

21%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

2

2

8

Business

. High-performance optical subsystems for use in telecommunications and cable TV network

systems.

. With proprietary technology and products that enable transmission, reception and switching

functionality for high-bandwidth, intelligent optical networking applications.

Backlog

. As of July 30, 2005 and July 29, 2006, OPTM had $7.3 million and $22.6 million, respectively,

in backlogged product orders

Four customers represented 62% of July 31, 2006 year revenue

. Cisco/Scientific Atlanta: 20%

. Ericsson/Marconi: 17%

. Celestica: 13%

. Sanmina: 12%

Industry growth drivers

. Increases in network traffic volume over the last two years, driven by the proliferation of

enhanced video and voice applications delivered over Internet protocol, or IP, networks have

resulted in higher network utilization and the need for additional bandwidth capacity from the core

to the edge of networks.

. To address the continued demand for increased bandwidth capacity, carriers are investing

significant capital to enhance the capabilities of their networks and upgrade to new high

bandwidth IP networks.

. Optical subsystems provide critical transmission, reception and switching functions that

significantly increase the capacity, bandwidth efficiency and manageability of carrier networks.

Products

. A suite of optical subsystems including transceivers and transmitters.

. Has also recently distributed demonstration units of a technologically innovative reconfigurable

optical add/drop multiplexer, or ROADM, that enables dynamic wavelength processing ( DWP)

referred to DWP ROADM

. Commercial availability of the DWP DOADM product line is not expected before the first

calendar quarter of 2007.

DWP ROADM benefits

. OPTM believes it has a fundamentally different product design approach from that of

competitors, allowing mass customization of products using common hardware platforms and

customized embedded software.

. Has also have implemented several unique automated and semi-automated manufacturing

systems and processes designed to further improve manufacturing yields and produce higher

volumes of products than generally possible using manual production techniques.

Current Demand Trends

Driven by market trends in the carrier industries such as network expansion, the implementation of

new technologies and value-added services, network changes and consolidations in these

industries

. Demand for the long reach 300 pin WDM fixed wavelength transceivers has increased at a

significantly greater rate than that for other products in recent quarters.

. Demand has also increased significantly for transceivers with tunable lasers across long reach

and intermediate reach product line.

. Has seen growth in demand for transceivers using the XFP form factor, which is a relatively new

and smaller transceiver form factor. XFP transceivers are currently unable to accommodate

tunable lasers because of the smaller XFP form factor size and, as a result, growth in their use has

been greatest in short reach applications.

Optical subsystem uses & customers

. In network systems that deliver voice, video, and other data services for consumers and

enterprises in the long haul, metropolitan and access segments, referred to as the core to the edge,

of telecommunications and cable TV networks.

.OPTM customers are network systems vendors whose customers include wireline and wireless

telecommunications service providers and cable TV operators, collectively referred to as carriers.

. Customers include many of the leading global network systems vendors, including Alcatel, Cisco

Systems, Lucent Technologies, Marconi, Scientific Atlanta, Siemens and Tellabs.

Operational achievements

. Between the fiscal year ended August 2, 2002 and the fiscal year ended July 30, 2005, introduced

a product line of 300 pin transceivers for use in the long haul, metro and access fiber optic

networks.

. In the fiscal year ended July 31, 2004, began to offer a broader product suite and introduced

FTTH transmitters.