Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop

Pre-IPO analysis, grading & scoring -- updated April 28

. 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 (based on recent results)

(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

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

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or ticker for analysis

scheduled below

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

April 30 week IPO schedule

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Acorn International ATV

$405

2.1

101

2.1

2.3

26%

Chinese infomercials & direct mail: C+, 7

Post-IPO shrs: 30m

AMC Entertainment AC

$2,774

1.2

-23

2.5

-2.3

4.3%

411 theaters: AMC & Loews brands: C+, 7

Post-IPO shrs: 146m

Cavium Networks CAVM

$418

9.4

-174

5.4

5.5

16%

semi-conductors for networks: C+, 7

Post-IPO shrs: 38m

Interactive Brkrs IBKR

$10,000

8.0

14

3.6

3.6

5%

Greenwich, CT: B-, 8

Post-IPO shrs: 400m

NeurogesX (NGSX)

$175

n/a

-6

3.4

3.3

32%

biopharma pain management: C, 6

Post-IPO shrs: 12.5m

Qiao Xing-Mobile (QXM)

$683

3.0

18

2.9

2.7

32%

Mobile handsets: C+, 7

Post-IPO shrs: 52.5m

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

April 30wk financials, analysis, grading, scoring

Acorn International

ATV, C+, 7

Chinese infomercials & direct mail

Post-IPO shrs: 30m

Shanghai, China

2004

2005

2006

IPO Mkt

Rev ($mm)

$95

$170

$196

Cap (mm)

Gross margin %

63%

59%

63%

$405

Profit (loss)

$15

$8

$4

@$13.5

Profit (loss) %

15%

4.7%

2%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Acorn International ATV

$405

2.1

101

2.1

2.3

26%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

2

1

7

7.7mm American Depositary Shares

representing 23.1mm shares

Taxation

. Incorporated in the Cayman Islands and China DRTV is a BVI company and is not subject to

taxes in those jurisdictions.

. Other subsidiaries and affiliated companies are PRC companies.

. In addition to usual statutory taxes, subsidiaries and affiliated companies are subject to a 17%

value added tax, or VAT, on sales in accordance with relevant PRC tax laws.

. VAT taxes payable are accounted for through the balance sheet and do not have an income

statement effect.

. The usual statutory income tax rate applicable to PRC companies is 33%

Expects to report for the March quarter

o Total net revenues in the range of $67.7 million to $69.5 million, compared to $57.5 million in

the quarter ended March 31, 2006;

o Gross profit in the range of $36.0 million to $37.6 million, compared to $32.0 million in the

quarter ended March 31, 2006;

o Income from operations in the range of $5.8 million to $6.2 million (including approximately

$1.3 million in anticipated share-based compensation expenses), compared to $4.6 million in the

quarter ended March 31, 2006; and

o Net income in the range of $6.8 million to $7.3 million (including approximately $1.5 million in

investment gains), compared to $5.4 million in the quarter ended March 31, 2006.

Business

> leading integrated multi-platform marketing company in China

> Two primary sales platforms:

. Direct sales platform and

. Nationwide distribution network

Operations

Operates the largest TV direct sales business in China in terms of revenues and TV air time

purchased according to Euromonitor International (Asia) Pte Ltd., or Euromonitor.

. ATV believes it was one of the first companies in China to use TV direct sales programs, often

referred to as TV infomercials, in combination with a nationwide distribution network to market

and sell products and services to consumers

. In 2006, also began using the TV direct sales platform to promote and sell third-party branded

products and services pursuant to joint sales arrangements and marketing services arrangements.

Nationwide distribution network

. Vertically integrated direct sales operations, which include product development, TV and other

direct sales and marketing, call center operations, and order fulfillment and delivery, combined

with ATV's nationwide distribution network, allow it, according to ATV, to effectively reach

consumers and maximize sales throughout China.

. ATV's nationwide distribution network extends across all provinces and allows ATV to reach

over 20,000 retail outlets covering nearly all of the cities and counties in China.

. Sales generated through the nationwide distribution network accounted for 54.9% and 45.3% of

net revenues in 2005 and 2006, respectively.

Competition

Because of its integrated vertical business model, ATV faces competition from the following

companies operating in the value chain:

o Other TV direct sales companies operating in China with generally similar business models to,

including Pacific Media, China SevenStar and Smile TV (Chi Ma Ao);

o TV home shopping companies that operate on one or two TV shopping channels in a single

province such as Oriental CJ Home Shopping, GS Chongqing Home Shopping and GD Hyundai

Home Shopping, as well as TVSN, which operates on multiple TV channels;

o Domestic and international sellers of consumer branded products that sell their products in

China. For example, ATV's Ozing electronic learning devices compete with electronic learning

devices under the BBK, e100, Noah and other brands, and ATV's cell phone products compete

with similar products sold by local and international cell phone manufacturers;

o Traditional retailers and distributors, as well as direct marketers, such as Avon, operating in

China

o Other Internet and e-commerce companies in China that offer consumer products online via an

Internet platform, including eBay's China site, Alibaba's Tao Bao, and Dang Dang.

o In addition, large multi-national home shopping companies,

. Such as QVC, may enter the China market directly or indirectly.

. Entry by these players becomes more likely if existing PRC restrictions on content, number of

advertising hours per day and foreign ownership of TV stations are relaxed.

result in substantial cost and diversion of resources and management attention."

Use of $80mm in IPO proceeds from sale of 6.7mm shares

(shareholders intend to sell 1mm shares)

o $25 million to increase our purchases of, and pre-payments for, TV advertising time

o $10 million to build product and service brands, expand sales and marketing for distribution

sales, and further strengthen business management systems and infrastructure within the

nationwide distribution network;

o $10 million for product and service development, including upgrades of existing products and

services and development of new products and services;

o $10 million to enhance and upgrade technology and other business infrastructure and platforms,

as well as customer data mining capabilities;

o $20 million to explore and strengthen alternative direct sales platforms, such as dedicated TV

home shopping channels, catalog sales and Internet-based direct sales; and

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

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

AMC Entertainment

AC, C+, 7

411 theaters: AMC & Loews brands

Post-IPO shrs: 146m

Kansas City, MO

2006

IPO Mkt

Rev ($mm)

$2,380

Cap (mm)

Operating expenses

98%

$2,774

Profit (loss)

-$123

@$7.5

Profit (loss) %

-5%

EBITDA

$392

EBITDA % of reve

16%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

AMC Entertainment AC

$2,774

1.2

-23

2.5

-2.3

4.3%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

1

3

1

7

(SEC filing under Marquee Holdings)

Compare & Contrast

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

Annual

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

div rate

Regal Entmnt (RGC) @$21.30

$3,170

1.2

37

-143

-13

5.6%

AMC Entertainment AC

$2,774

1.2

-23

2.5

-2.3

4.3%

Cinemark Holdings (CNK)

$2,014

1.2

-575

2.2

-3.0

4%

NCM (NCMI) @$26.47

$1,100

5.0

-105

-1.6

-1.6

n/a

*AC is scheduled for April 30wk

Theaters/

Screens

Screens/

Market cap

Mkt Cap

Price/

Screens

Theater

per theater

per screen

EBITDA

Regal Entertmnt (RGC)

539

6403

12

$5,881,262

$495,080

6.8

AMC Entertainment AC

382

5340

14

$7,261,780

$519,476

7.1

Cinemark Holdings (CNK)

396

4488

11

$5,085,859

$448,752

17.4

NCM (NCMI)

1,113

14,081

13

$988,320

$78,119

-212

Notice:

EBITDA

Only RGC is profitable, and RGC pays the highest dividend

Company

% of Rev

CNK's price-to-sales ratio is the same as RGC, but RBC is profitable

RGC

17.8%

EBITDA

AC

16.5%

. CNK is expensive in terms of the Price-to-EBIDTDA multiple, relative to RGC & AC

CNK

7.2%

. CNK's EBITDA % of revenues is 30% to 40% of RGC's & AC's

NCMI

-2.4%

Dividend policy

. $0.82 per share (or a quarterly rate initially equal to $0.205 per share)

. 4.3% annual rate at $19

Business

. One of the world's leading theatrical exhibition companies based on a number of characteristics,

including total revenues.

. Founded in 1920 and since that time have pioneered many of the industry's most important

innovations, including the multiplex theatre format in the early 1960's and the North American

megaplex theatre format in the mid-1990's.

. In addition, we have acquired some of the most respected companies in the theatrical exhibition

industry, including Loews and General Cinema, and we have a demonstrated track record of

successfully integrating those companies through timely theatre conversion, headcount reductions

and consolidation of corporate operations.

. As of December 28, 2006, we owned, operated or held interests in 382 theatres with a total of

5,340 screens, approximately 87% of which were located in the United States and Canada.

. Our theatres are primarily located in large urban markets in which we have a strong market

position relative to our competitors.

Use of $714mm in IPO proceeds

. 100% to selling shareholders

. All are private equity or buy-out funds

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

Cavium Networks

CAVM, C+, 7

semi-conductors for networks

Post-IPO shrs: 38m

Mountain View, CA

2004

2005

2006

March, 06*

March, 07*

IPO Mkt

Rev ($mm)

$7

$19

$34

$7

$11

Cap (mm)

Gross margin %

58%

59%

62%

63%

63%

$418

Profit (loss)

-$11

-$11

-$8

-$3

-$1

@$11

Profit (loss) %

-154%

-58.2%

-22%

-40%

-5%

*Qtr ended March 31

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Cavium Networks CAVM

$418

9.4

-174

5.4

5.5

16%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

1

2

7

Business

. Highly integrated semiconductor processors that enable intelligent networking, communications

and security applications.

. Products also include a rich suite of embedded security protocols that enable unified threat

management, or UTM, secure connectivity and network perimeter protection.

Products

. Are systems on a chip, or SoCs, which incorporate single or multiple processor cores, a highly

integrated architecture and customizable software that is based on a broad range of standard

operating systems.

. Are used in a broad array of networking equipment, including routers, switches, content-aware

switches, UTM and other security appliances, application-aware gateways, voice/video/data, or

triple-play, gateways, wireless local area network, or WLAN, and 3G access and aggregation

devices, storage networking equipment, servers and intelligent network interface cards.

Customers

. In 2006, generated revenue from over 100 customers, including Aruba Networks, Inc., Cisco

Systems, Inc., Citrix Systems, Inc., F5 Networks, Inc., Furukawa Electric Co., Ltd., Juniper

Networks, Inc., Nokia Corporation, SafeNet, Inc., SonicWALL, Inc. and Yamaha Corporation

. Received 56% of revenue in 2006 from top five customers and 60% of revenue in the first

quarter of 2007 from the top five customers

Sales

. Primarily sells products to OEMs, either directly or through their contract manufacturers

. Contract manufacturers purchase CAVM products only when an OEM incorporates CAVM's

product into the OEM's product, not as commercial off-the-shelf products.

History

. From incorporation in 2000 through 2003, primarily engaged in the design and development of

the first processor family, NITROX, which began shipping commercially in 2003.

. In 2004, introduced and commenced commercial shipments of NITROX Soho.

. In 2006, commenced first commercial shipments of the OCTEON family of multi-core MIPS64

processors.

. In addition, introduced a number of new products within all three of these product families in

2006

. Since inception, has invested heavily in new product development and has not yet achieved

profitability on a quarterly or annual basis.

. Revenue has grown from $7.4 million in 2004 to $34.2 million in 2006, driven primarily by

demand in the enterprise network and data center markets.

. CAVM expects product sales for use in the enterprise network and data center markets to

continue to represent a substantial portion of our revenue in the foreseeable future.

Intellectual property

. Has six issued and 27 pending patent applications in the United States, and two issued and 27

pending foreign patent applications.

. The six issued patents in the United States expire in the years beginning in 2021 through 2023

. The two issued foreign patents expire in 2022.

. Issued patents and pending patent applications relate to security processors, multi-core

microprocessor processing and other processing concepts

Competition

. Primary competitors to be other companies that provide embedded processor products to the

market, including Freescale, Broadcom, Raza, Marvell, PMC-Sierra, Intel, and to a lesser extent,

Hifn.

. Most of these competitors offer products that differ in functionality and processing speeds and

address some or all of our four target end markets. In comparison we offer a broad array of highly

integrated, intelligent solutions at various performance levels and prices for each of our end

markets.

> VM product features & competitive advantages, according to CAVM

. CAVM products generally include a multiple number of processor cores, greater integration of

L4-L7 hardware acceleration and interfaces, and efficient power consumption for networking,

communication and security applications.

. Features previously available in the marketplace; CAVM's ability to recruit good talent including

software engineers and chip designers; and CAVM's ability to protect our intellectual property.

Use of $61.5mm in IPO proceeds

. $3.6mm to repay debt

. $1.9mm to pay a license fee

. balance for working capital and other general corporate purposes.

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

Interactive Brokers

IBKR, B-, 8

Greenwich, CT

Post-IPO shrs: 400m

electronic broker

2003

2005

2006

2007

IPO Mkt

Rev ($mm)

$651

$622

$1,099

$1,737

Cap (mm)

Interest

$46

$58

$170

484

$12,040

Net revenues

$605

$564

$929

$1,253

@$30.1

Executiion & clearing % of net rev

21%

27%

23%

25%

Partnership Profit (loss)

$345

$270

$536

$734

Income taxes, 45% rate

$155

$122

$241

$330

Fully taxed income

$190

$149

$295

$404

Profit (loss) % of net rev

29%

24%

27%

23%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Interactive Brokers IBKR

$12,040

9.6

30

3.8

4.3

10%

Greenwich, CT

Mgt

Market

Market Do-

Proprie-

Total

electronic broker

Growth

mination

tary

rating

20 is perfect

2

2

2

2

8

Compare & contrast -- ratios

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

Price

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

May 3

Interactive Brokers IBKR

$12,040

9.6

30

3.8

4.3

$30.01

NYMEX Holdgs (NMX)

$11,420

17.4

51

13.4

21.0

$124.00

CBOT Holdings BOT

$8,410

11

38

11.0

11.0

$195.21

Chicago Merc (CME)

$18,120

14

35

11.1

11.1

$520.00

InterconExchng (ICE)

$9,470

19

43

7.6

-155.2

$137.65

Intern'l Sec Exc (ISE)*

$2,560

11.4

38

9.3

9.3

$67.00

Based on annualizing March quarter results

*Deutsche Boerse agreed to buy ISE for $2.8 billion.

Recent developments

. Expects total net revenues to be between $318 million and $338 million for the quarter ended

March 31, 2007, compared to total net revenues of $1.25 billion for the year ended December 31,

'2006.

. Expects income before income tax to be between $181 million and $192 million for the quarter

ended March 31, 2007, compared to income before income tax of $761.6 million for the year

ended December 31, 2006

. Unexpectedly heavy options activity in advance of certain corporate announcements adversely

impacted market making operations during the quarter ended March 31, 2007.

. Operating results for the quarter ended March 31, 2007 are not necessarily indicative of the

results to be expected in future periods.

Business

. Automated, integrated, interactive, global electronic market making

. Specializing in derivatives and equities, options, futures and ETFs listed on electronic exchanges

. Business is done by computers, not people

Major global market networking trend (global market of electronic networks)

Resource allocation optimization using a global network of electronic platforms

. The network is formed by electronic exchanges market markers, brokers and customers

. IBKR provides 60 exchanges with liquidity and global access to institutional and professional

individual investors

Growth plan

Use IBKR's established platform to expand further to new exchanges, products & customers

Competitive strengths

• Proprietary technology

IBKR views itself primarily as a technology company. Since inception in 1977, has focused on

developing proprietary software to automate broker-dealer functions. Believes that itsearly and

continuous investment in technology, as well as overall technological capabilities, provides a

significant advantage over competition by enabling us IBKR make markets profitably in financial

instruments (e.g., equity options, futures, index options and equities) worldwide with low spreads

between bid and offer prices, while at the same time providing customers with the ability to effect

trades at execution and commission costs that are among the lowest in the industry.

• Experienced management team