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

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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===================
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
Key employees have significant experience and expertise in the application of technology to the
financial services industry and, as significant equity owners of IBG LLC, are heavily committed to
success. Senior management team has an average of 17 years tenure with us.
• Low cost structure
Focus on automation and expense management practices enables IBKR to operate with a low cost
structure. IBKR’s technology allows itto be one of the lowest cost providers of liquidity to the
global, exchange-listed equity and derivatives markets and global execution and clearing services
for professional traders and institutions.
• Complementary lines of business
. Leveraged the combined volume from market making and brokerage operations and proprietary
technology in each of these operations to route orders effectively and to process trades on
exchanges around the world, resulting in consistently best executions and one of the lowest unit
costs in the industry.
. Combined market making and brokerage systems offer access to exchanges and market centers
that are typically not cost feasible for brokerage-only businesses.
• Diversified revenue base
. Earns trading gains from market making business as well as commissions and fee income from
our electronic brokerage business.
. Generate revenues from millions of relatively small and diversified individual trades. In 2006, we
executed approximately 130 million trades. These trades are broadly distributed among
approximately 357,000 tradable, exchange-listed products on more than 60 exchanges and market
centers in 23 countries.
• Established business franchise
. Have been in operation for nearly three decades.
. In 2005, Institutional Investor ranked IBKR the 16th largest U.S. securities firm, as measured by
consolidated capital. Are members of more than 60 major exchanges and market centers around
the world. Many of these memberships are franchises that are difficult to obtain.
. As of December 31, 2006, held market maker licenses on 31 exchanges in 15 countries, and has
preferential rights and obligations as designated specialists or market makers in approximately
1,100 classes of options in the United States.
• Real-time risk management
. Operates as a market maker, not an investor. Therefore, our ability to generate profits is generally
a function of transaction volume on electronic exchanges rather than volatility or the direction of
price movements. Seeks to calculate quotes a few seconds ahead of the market and execute small
trades at a tiny but favorable differential as a result.
. Proprietary pricing model continuously evaluates and monitors the risks inherent in IBKR’s
portfolio, assimilates market data and reevaluates the outstanding quotes in the entire portfolio
each second.
. In the electronic brokerage business, the entire credit management process is automated,
including real-time margin calls and automatic liquidation. This automated system enables IBKR
to maximize profits while minimizing losses typically associated with manual risk management.
History
According to IBKR
. 29 years of single minded focus on automation enabled IBKR to generate more than
. $1mm of pretax profit per year per employee, for the past two years
Competing
. In order to compete successfully, IBKR believes that it must have more sophisticated, versatile
and robust software than competitors.
. The electronic brokerage businesses of many of competitors are relatively insignificant in the
totality of their firms' business.
. IBKR provides access to a global range of products from a single IB Universal AccountSM and
professional level executions and pricing, which positions it in competition with niche direct
access providers and prime brokers.
. In addition, IB provides sophisticated order types and analytical tools that give a competitive
edge to its customers.
Competition
> Market makers
. Major competitors are large broker-dealers, such as Goldman Sachs, Citigroup, UBS, Morgan
Stanley and Merrill Lynch, and niche players such as Citadel, LaBranche, Group One Trading,
Wolverine Trading and Peak6.
. Most of the competitors in market making are much larger than we are and have more captive
order flow, although this is less true with respect to IBKR’s narrow focus on options, futures and
ETFs listed on electronic exchanges.
> Electronic brokerage
The market for electronic brokerage services is rapidly evolving and highly competitive. IB
believes that it neither fits within the definition of a traditional broker nor a prime broker.
. IB's primary competitors include offerings targeted to professional traders by large retail online
brokers (such as ETRADE's Power ETRADE Pro business and Charles Schwab & Co., Inc.'s
CyberTrader business) and
. The prime brokerage and electronic brokerage arms of major investment banks and brokers (such
as Goldman Sachs' RediPlus business and Morgan Stanley's Passport business).
. IBKR also encounters competition to a lesser extent from full commission brokerage firms
including Merrill Lynch, Smith Barney (a division of Citigroup), as well as other financial
institutions, some of which provide online brokerage services.
Use of $1.2bb in IPOproceeds
84.6% to the Chairman/CEO, Thomas Peterffy
6% to other management & directors
===================
NeurogesX	NGSX, C, 6
biopharma pain management						Post-IPO shrs: 12.5m
San Carlos, CA		2004	2005	2006		IPO Mkt
Profit (loss)		-$21	-$13	$30		Cap (mm)
						$175
						@$14
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
NeurogesX (NGSX)	$175	n/a	-6	3.4	3.3	32%
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
. Biopharmaceutical company focused on developing and commercializing novel pain
management therapies.
. Assembling a portfolio of pain management product candidates and are developing innovative
new therapies based on known chemical entities.
. Initial focus is on chronic peripheral neuropathic pain including postherpetic neuralgia, or PHN,
painful HIV-distal sensory polyneuropathy, or HIV-DSP, and painful diabetic neuropathy, or
PDN.
Lead Product Candidate, NGX-4010
. NGX-4010 is a non-narcotic analgesic formulated in a topical patch containing an 8%
concentration of synthetic capsaicin. Capsaicin is released from the patch and absorbed into the
skin without significant absorption into the bloodstream.
. Accordingly, users of NGX-4010 can avoid the side effects of anti-convulsants, anti-depressants
and opioids and the potential for abuse and addiction associated with some of these drugs. NGX
4010 is administered in a physician’s office in a non-invasive process that involves pre-treating
the painful area with a topical anesthetic followed by the application of our patch.
. NGX-4010 has been shown to provide a clinically meaningful reduction in peripheral
neuropathic pain for at least 12 weeks.
NGX-4010 clinical trials
. NGX-4010, a synthetic capsaicin-based topical patch designed to manage pain associated with
peripheral neuropathic pain conditions, has completed two pivotal Phase 3 clinical trials that have
met their primary endpoints, one in PHN and one in HIV-DSP.
. The results demonstrated that a single 30 or 60 minute application of NGX-4010, depending on
the indication, may provide at least 12 weeks of clinically-meaningful pain relief.
. Expects to file a marketing authorization application, or MAA, in Europe for NGX-4010 in 2007
based upon existing clinical trial data. If the safety and efficacy of NGX-4010 are confirmed by
our two ongoing Phase 3 clinical trials, intends to submit a new drug application, or NDA, in the
United States in 2008
Competition
If NGX-4010 receives marketing approval, it will compete against, and may be used in
combination with, well-established products currently used both on and off-label in the treatment
of PHN and HIV-DSP.
. The most directly competitive currently marketed products in the United States are Lidoderm, an
FDA-approved 5% lidocaine topical patch for the treatment of PHN marketed by Endo
Pharmaceuticals, and Neurontin and Lyrica, oral anti-convulsants, marketed by Pfizer for use in
the treatment of PHN.
. In addition to these branded drugs, the FDA has approved gabapentin for use in the treatment of
PHN. Gabapentin is marketed by multiple generic manufacturers, and is the most widely
prescribed drug in the United States for treatment of neuropathic pain. Pfizer has also received
FDA approval of Lyrica for the treatment of PDN and epilepsy indications. The FDA has
approved Cymbalta from Eli Lilly for use in the treatment of PDN and depression.
. By the time NGSX is able to commercialize a product candidate, the competition and potential
competition may be greater and more direct. There are many other companies working to develop
new drugs and other therapies to treat pain in general and neuropathic pain in particular, including
GlaxoSmithKline, Merck & Co., Novartis AG and Eli Lilly. Many of the compounds in
development by such companies are already marketed for other indications, such as anti-
depressants or anti-seizure drugs.
. NGSX is aware of a small, privately-held specialty-pharmaceutical company that claims to be in
early stage clinical evaluation of a high-concentration capsaicin patch for the treatment of PHN as
well as a local anesthetic patch for the treatment of PHN, HIV-DSP and PDN.
Patents and Proprietary Rights
. The commercial success, if any, of NGX-4010 depends, in part, on a device patent granted in the
United States and a device patent granted in Hong Kong and certain countries of Europe
concerning the use of a dermal patch for high-concentration-capsaicin delivery for the treatment of
neuropathic pain.
. NGSX exclusively licenses these patents, as well as related pending patent applications in
Canada and Europe, from the University of California. NGSX does not currently own, and do not
have rights under this license to any issued patents that cover NGX-4010 outside Europe, Hong
Kong or the United States.
. NGSX also licenses a method patent granted in the United States from the University of
California concerning the use of high-concentration capsaicin delivery for the treatment of
neuropathic pain.
. Two of the three inventors named in the method patent did not assign their patent rights to the
University of California. As a result, NGSX’s rights under this patent are non-exclusive. Anesiva,
a company also focused on the development and commercialization of treatments for pain, has
licensed the right to use the technology under the method patent from one of the non-assigning
inventors. There can be no assurances that other entities will not similarly obtain rights to use the
technology under the method patent.
Use of $50mm in IPO proceeds
. $40.0 million to fund research and development activities, including $25.0 million for the
completion of the planned clinical and regulatory program for NGX-4010 in PHN and HIV-DSP, .
$10.0 million for clinical development of NGX-4010 in PDN through at least one Phase 3 trial and
. $5.0 million for development of our new product candidate NGX-1998, an opioid analgesic, into
a Phase 2 trial and for pre-clinical research of other potential product candidates
. Remaining proceeds to fund general and administrative activities and potentially for the
accelerated repayment of currently outstanding indebtedness
===================
Qiao Xing-Mobile Com	QXM, C+, 7
Mobile handsets						Post-IPO shrs: 52.5m
Beijing, China		2004	2005	2006		IPO Mkt
Rev ($mm)				$225		Cap (mm)
Gross margin %		12%	18%	27%		$683
Operating profit margin %		7%	15%	21%		@$13
Profit (loss)				$37
Profit (loss) %		0.0%	12.4%	16.4%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Qiao Xing-Mobile (QXM)	$683	3.0	18	2.9	2.7	32%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7
China's tax laws
. On March 16, 2007, the Enterprise Income Tax Law of the PRC, or the New Tax Law, was
promulgated. Under the New Tax Law, which will become effective on January 1, 2008, domestic
enterprises and foreign investment enterprises will be subject to a
. Unified enterprise income tax rate of 25%, except that enterprises that were approved to be
established prior to March 16, 2007 may continue to enjoy the existing preferential tax treatments
until December 31, 2012. Details of the 5-year transitional period arrangement (i.e. from January
1, 2008 to December 31, 2012) for enterprises approved to be established prior to March 16, 2007
are expected to be set out in more detailed implementation rules to be adopted in the future.
. In addition, certain qualifying high-technology enterprises may still benefit from a preferential
tax rate of 15% under the New Tax Law.
Business
. One of the leading domestic manufacturers of mobile handsets in China in terms of unit sales
volume.
. Manufactures and sell mobile handsets based primarily on GSM global cellular technologies.
Changing sales mix
. In 2006, 42.8% of total handset revenue was derived from sale of handsets produced at the
Huizhou facility, 56.3% from those produced through EMS (Electronic Message Service)
arrangements and 0.9% from those sourced from original design manufacturers, or ODMs.
. Expects to reduce reliance on EMS (Electronic Message Service) providers and lower product
costs once the new facility in Huizhou commences operation in the second half of 2007
Prior to 2004
. Prior to 2004, the substantial majority of our revenue was derived from selling handset products
sourced from ODMs under the "CECT" brand name.
. Over the last two years, GXM has gradually increased in-house design and manufacturing
capabilities.
Sales
. Sells products primarily to national and provincial distributors, which resell products to end
customers in mainland China through their own distribution networks principally composed of
local distributors and retail outlets.
. All products are currently sold under the "CECT" brand name.
Competition
. While China's mobile handset market is expected to grow significantly, competition is intense
. The market has become highly fragmented in recent years as an increasing number of handset
producers have entered the market.
. Based on MII data, there are currently over 60 mobile handset manufacturers in China.
. QXM focus's on developing and marketing differentiated products for the Chinese handset
market.
. This strategy,according to QXM, has allowed the company to maintain market position while
avoiding direct competition with mass market competitive products.
Shareholders
. Pre-Ipo Qiao Xing Universal Telephone (XING). owns 80.5%.
. Qiao Xing Universal Telephone, Inc. engages in the manufacture and distribution of
telecommunications products in the People's Republic China.
. XING's market cap was $413mm April 26, 2007, but it is not a fully SEC-reporting comany
. Pre-IPO 19.5% held by two funds
Use of $134mm in IPO proceeds from sale of 12.5mm shares
(shareholders intend to sell 4.16mm shares)
o $44 million to repay shareholder loans to Xing. The shareholder loans from Xing were
unsecured, non-interest bearing and had no fixed repayment terms
o $80 million to make loans or capital contributions to CECT, of which (i) $60 million will be
used to fund working capital requirements in connection with planned capacity expansion and (ii)
$20 million will be used to purchase equipment for new manufacturing facility in Huizhou.
===================






===================
Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop
Pre-IPO analysis, grading & scoring -- updated April 20
. 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
===================
SEARCH BY COMPANY		In your browser use 'Edit/Find' to search for companies
or ticker for analysis		scheduled below
===================
April 23 week IPO schedule
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	Annual
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	div rate
CardioMEMS (SENS)	$295	86.8	-14	3.4	3.4	26%
wireless sensors for cardiovascular sys: C+, 8						Post-IPO shrs: 23m

Cinemark Holdings CNK	$1,908	1.2	-545	2.1	-3.0	26%
392 movie theaters: C+, 7				*proforma		Post-IPO shrs: 106m

EDENOR (EDN)	$765	1.7	-51	0.8	1.3	34%
large electricity distribution co in Argentina: C+, 7						Post-IPO shrs: 45mmADS equivalents

EndoCeutics (ENCX)	$219	n/a	-61	4.1	4.2	32%
hormones for cancer & endocrine disodrs: C, 5			January 31 fiscal			Post-IPO shrs: 18m

OceanFreight (OCNF)	$257	n/a	n/a	1.3	1.3	84%
startup to acquire ships: C+, 6						Post-IPO shrs: 13m

Ocean Power TechOPTT	$214	35.7	-10	1.8	1.8	49%
electricity from ocean waves: C, 6		April 30 fiscal				Post-IPO shrs: 10m

Orexigen (OREX)	$299	n/a	-11	3.1	3.1	24%
central nervous system disorder treamnt: C, 7						Post-IPO shrs: 25m

Pharmasset (VRUS)	$280	8.7	18	2.9	2.9	28%
hepatitus, HIV oral therapeutics: C, 6			(Dec qrt not prepresentative, see below)			Post-IPO shrs: 22m

Vaughan Foods FOOD-u	$37	0.5	-53	2.8	3.2	41%
regional food processor/packager: C, 5						Post-IPO shrs: 5m
Total market caps	$4,273
April 23 week IPO analysis
CardioMEMS	SENS, C+, 8
wireless sensors for cardiovascular sys						Post-IPO shrs: 23m
Atlanta, GA		2004	2005	2006		IPO Mkt
Rev ($mm)			$0.1	$3.4		Cap (mm)
Gross margin %			43%	44%		$295
Operating Income %			20%	20%		@$13
Profit (loss)		-$5	-$9	-$21
Profit (loss) %			-9368%	-609%
Revenue in 2005 and 2006 was derived from the sale of our EndoSure sensors.
The increase in revenue from 2005 to 2006 was due to 12 months of sales in 2006 compared to
one month in 2005.
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
CardioMEMS (SENS)	$295	86.8	-14	3.4	3.4	26%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	2	8
Summary
. SENS could be the longer-term sleeper in this week's IPOs schedule
. See competition, SENS believes there is no current direct competition for its recently FDA
cleared products and for some pipeline products
. Working at miniaturizing products to expand the market
. However, in the medical device industry it is notoriously difficult to 'bridge the chasm' beyond early adopters
Business
. Medical device company that has developed and is commercializing a proprietary wireless
sensing and communication technology for the human body.
. Technology platform is designed to enable the improved management of patients with severe
chronic cardiovascular diseases such as heart failure, aneurysms and hypertension.
FDA
. In October 2005, received 510(k) clearance from the U.S. Food and Drug Administration, or
FDA, of the EndoSure Wireless AAA Pressure Measurement System, or EndoSure system, for
measuring intrasac pressure during endovascular repair of an abdominal aortic aneurysm, or AAA.
. Began initial commercial shipments of the EndoSure system in December 2005.
Recent development
. In March 2007, the EndoSure system was cleared by the FDA for measuring intrasac pressure
during thoracic aortic aneurysm, or TAA, repair.
Targeting miniaturized use
for patients with heart failure and for patients with hypertension
. SENS' heart failure and hypertension sensors are further miniaturized versions of the EndoSure
sensor that use the same materials, manufacturing methods and operational concepts as our EndoSure sensor.
o Heart Failure.
. SENS has developed a sensor that SENS believes can help heart failure patients avoid
hospitalizations
. By providing early detection of a worsening in their condition by measuring pressure inside the
heart.
o Hypertension.
. SENS is developing a hypertension sensor that SENS expects will be able to provide frequent
long-term monitoring of a patient's blood pressure.
. Initiated human implants of the hypertension sensor as part of feasibility studies commenced in
March 2007.
. Initially, plans to target severely hypertensive patients and then expand indications to the broader
hypertensive population.
Sales
. Has built a direct sales force in the United States to market the EndoSure system to physicians
who treat AAA and TAA, including vascular surgeons, radiologists and cardiologists.
. Clinical specialists provide technical and implantation support for our EndoSure system to
physicians and their hospital staff.
Pipeline
. SENS says it has a pipeline of cardiovascular products that leverage its core wireless sensing
technology.
. Are adapting the EndoSure system for use in patients with heart failure and in patients with
hypertension.
. Initiated heart failure clinical studies in South America in February 2006, in Europe in October
2006 and in the United States in December 2006.
. These feasibility studies are designed to assess the sensor's ability to help heart failure patients
avoid hospitalizations by providing early detection of a worsening of their condition.
. SENS is currently engaged in pre-clinical testing to determine the feasibility of sensor for
hypertensive patients.
Intellectual property
. As of December 31, 2006, had two issued U.S. patents and 27 pending U.S. patent applications.
. Also has exclusive medical licenses to three issued U.S. patents pursuant to agreements entered
into with the Georgia Tech Research Corporation and Massachusetts Institute of Technology
Medronic (MDT, $60bb market cap)
. Medtronic owns 15% per-IPO
. But you never know if a minority shareholder like that is just looking through a technology
development window to help their own development process.
Competition
EndoSure: SENS believes
> No competing wireless systems to its EndoSure system
. SENS believes there are no competing wireless pressure monitoring products to its EndoSure
system currently in the market.
. SENS is aware that Remon Medical Technologies, Inc., or Remon Medical, is developing a
wireless sensing technology using ultrasound for use in AAA patients.
. SENS' EndoSure system also faces competition from alternative techniques, products and
technologies that could affect the demand for the EndoSure system, such as the trans-lumbar
puncture procedure and any improvements to this and any other alternative procedures.
. May face competition for heart failure sensor from companies that are developing new
approaches and products for the heart failure patient monitoring market, including Medtronic
(MDT), St. Jude Medical (STJ), Proteus Biomedical, Inc. and Remon Medical.
. Medtronic has an established presence in the field of patient monitoring, has very significant
financial and operational resources and is developing a competing wired sensor monitoring system
for patients with heart failure named Chronicle. Chronicle is a cardiac device that consists of a
metal case that contains electronics and a battery, connected to insulated wires, or a lead, that
contain a pressure sensor. Patient data from the Chronicle is continuously recorded and
transmitted wirelessly approximately once a week to an external electronics system.
. Remon Medical is developing a wireless sensing technology for heart failure using ultrasound
and has conducted clinical implants outside the United States.
> Nor any competing wireless implantable blood pressure monitoring systems
. SENS does not believe there are any competing wireless implantable blood pressure monitoring
devices in clinical development or for sale.
. However, SENS may face significant competition for its hypertension sensor from well
established alternative products and techniques, including relatively inexpensive blood pressure
monitoring systems developed by companies such as Roche Diagnostics, a division of F.
Hoffmann-La Roche Ltd., and LifeScan, Inc., a division of Johnson & Johnson, and various other
manufacturers worldwide.
Use of $71mm in IPO proceeds
o $25.0 million for research and product development activities;
o $30.0 million for sales and marketing activities; and
o remainder to fund working capital and other general corporate purposes.
===================
Cinemark Holdings	CNK, C+, 7
396 movie theaters				*proforma		Post-IPO shrs: 106m
Plano, TX			2005	2006*		IPO Mkt
Rev ($mm)			$1,021	$1,612		Cap (mm)
Operating Income %			6%	11%		$1,908
Interest expense			10%	10%		@$18
Profit (loss)			-$25	-$4
Profit (loss) %			-2%	-0.2%
EBITDA % of revenues				7.2%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Cinemark Holdings (CNK)	$1,908	1.2	-545	2.1	-3.0	26%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	1	3	1	7
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 Entertmt-AC $19*	$2,774	1.2	-23	2.5	-2.3	4.3%
Cinemark Holdings (CNK)	$1,908	1.2	-545	2.1	-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 Entertmt-proposed AC	382	5340	14	$7,261,780	$519,476	7.1
Cinemark Holdings (CNK)	396	4488	11	$4,818,182	$425,134	16.4
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
. 4% expected annual dividend rate
. Annual rate of $0.72 per share (initial quarterly rate of $0.18 per share)
Business
. A leader in the motion picture exhibition industry with 396 theatres and 4,488 screens in the U.S.
and Latin America.
. CNK's circuit is the third largest in the U.S. with 281 theatres and 3,523 screens in 37 states.
. Is the most geographically diverse circuit in Latin America with 115 theatres and 965 screens in
12 countries.
. During the year ended December 31, 2006, over 215 million patrons attended CNK theatres, on a
proforma basis with the Century acquisition (see below)
. Based on the National Cinema Media relationship (see below) CNK will receive a theatre access
fee is composed of a monthly fixed payment per patron, initially $0.07, and a fixed payment per
digital screen, which may be adjusted for certain enumerated reasons.
. For the year ended December 31, 2006 the per patron fee would be $15mm, not including the
fixed payment per screen, which is not disclosed.
Leading market share in major markets
. For the year ended December 31, 2006, on a pro forma basis (including Century Theatres, see
below),
. CNK ranked either first or second by box office revenues in 28 out of its top 30 U.S. markets,
including Chicago, Dallas, Houston, Las Vegas, Salt Lake City and the San Francisco Bay Area.
Participation in National CineMedia (NCMI, $1bb market cap)
. In March 2005, Regal Entertainment (RGC, $3.16bb market cap) and AMC Entertainment, Inc.,
or AMC ($2.77bb market cap, scheduled to IPO week of April 30), formed National CineMedia,
LLC, or NCM, and on July 15, 2005, CNK joined NCM as one of the founding members.
. NCM operates the largest in-theatre network in the U.S. which delivers digital advertising
content and digital non-film event content to the screens and lobbies of the three largest motion
picture companies in the country.
. Digital projectors currently used to display advertising will not be used to exhibit digital film
content or digital cinema.
> NCM's primary activities that impact CNK include the following activities:
o Advertising: NCM develops, produces, sells and distributes a branded, pre-feature
entertainment and advertising program called "FirstLook," along with an advertising program for
its lobby entertainment network, or LEN, and various marketing and promotional products in
theatre lobbies;
o CineMeetings: NCM provides live and pre-recorded networked and single-site meetings and
events in the theatres throughout its network; and
o Digital Programming Events: NCM distributes live and pre-recorded concerts, sporting events
and other non-film entertainment programming to theatres across its digital network.
> On February 13, 2007, received $389.0 million in connection with National CineMedia IPO.
or NCM, Inc.'s, initial public offering and related transactions, or the NCM transactions.
. As a result of these transactions, will no longer receive a percentage of NCM's revenue but rather
a monthly theatre access fee which we expect will reduce the contractual amounts required to be
paid to us by NCM.
. In addition, expects to receive mandatory quarterly distributions of excess cash from NCM.
. CNK currently owns 14% of NCM, and the dividend stream is expected by be
Acquisition of Century Theatres, Inc.
On October 5, 2006, CNK completed the acquisition of Century, a national theatre chain
headquartered in San Rafael, California with 77 theatres and 1,017 screens in 12 states, for a
purchase price of approximately $681 million and the assumption of approximately $360 million
of Century debt.
National CineMedia Relationship (NCM)
. In March 2005, Regal and AMC formed NCM, and on July 15, 2005, CNK joined NCM, as one
of the founding members.
. NCM operates the largest digital in-theatre network in the U.S. for cinema advertising and non
film events and combines the cinema advertising and non-film events businesses of the three
largest motion picture exhibition companies in the U.S.
. On February 13, 2007, NCM, Inc., a newly formed entity that now serves as a member and the
sole manager of NCM, completed an initial public offering of its common stock. In connection
with the NCM, Inc. public offering, NCM, Inc. became a member and the sole manager of NCM,
and we amended the operating agreement of NCM and the Exhibitor Services Agreement pursuant
to which NCM provides advertising, promotion and event services to our theatres.
Relationship with NCM
. In consideration for NCM's exclusive access to CNK''s theatre attendees for on-screen advertising
and use of off-screen locations within theatres for the lobby entertainment network and
lobby promotions
. CNK will receive a monthly theatre access fee under the Exhibitor Services Agreement.
. The theatre access fee is composed of a fixed payment per patron, initially $0.07, and a fixed
payment per digital screen, which may be adjusted for certain enumerated reasons.
. The payment per theatre patron will increase by 8% every five years, with the first such increase
taking effect after 2011, and the payment per digital screen, initially $800 per digital screen per
year, will increase annually by 5%, beginning after 2007.
. The theatre access fee paid in the aggregate to Regal, AMC and CNK will not be less than 12%
of NCM's Aggregate Advertising Revenue, or it will be adjusted upward to reach this minimum
payment.
Digital Cinema Implementation Partners, LLC
. On February 12, 2007, CNK, along with AMC and Regal, entered into a joint venture known as
Digital Cinema Implementation Partners LLC, or DCIP, to explore the possibility of implementing
digital cinema in CNK's theatres and to establish agreements with major motion picture studios
for the implementation and financing of digital cinema.
. In addition, DCIP has entered into a digital cinema services agreement with NCM for purposes
of assisting DCIP in the development of digital cinema systems.
. Future digital cinema developments will be managed by DCIP, subject to approval by CNK,
along with CNK partners AMC and Regal.
Competition
. CNK is the sole exhibitor in 84% of the 228 first run film zones in which CNK's first run U.S.
theatres operate.
. In film zones where there is no direct competition from other theatres, CNK selects those films
believed to be the most successful from among those offered to by film distributors.
. Where there is competition, CNK usually licenses films based on an allocation process.
. Of the 965 screens CNK operates outside of the U.S., 86% of those screens have no direct
competition from other theatres.
. Also faces competition from a number of other motion picture exhibition delivery systems, such
as DVD, network and syndicated television, video on-demand, pay-per-view television and
downloading utilizing the Internet.
. CNK does not believe that these additional distribution channels have adversely affected theatre
attendance
Leveraged buyout firm dilutes management down to 1% ownership pre-IPO
. On April 2, 2004, an affiliate of Madison Dearborn Capital Partners (MDP) acquired 83% of the
capital stock of Cinemark, Inc., pursuant to which a newly formed subsidiary owned by an affiliate
of MDP was merged with and into Cinemark, Inc. with Cinemark, Inc. continuing as the surviving
corporation. Management, including Lee Roy Mitchell, Chairman and then Chief Executive
Officer, retained 17% ownership interest in Cinemark, Inc.
. In December 2004, MDP sold 10% of its stock in Cinemark, Inc., to outside investors and in July
2005, Cinemark, Inc. issued additional shares to another outside investor.
. As of December 31, 2006, MDP owned approximately 66% of CNK's capital stock, Lee Roy
Mitchell and the Mitchell Special Trust collectively owned 14%, Syufy Enterprises, LP owned
11%, outside investors owned 8%, and certain members of management owned the remaining 1%
Use of $243mm in IPO proceeds from sale of 14mm shares
(shareholders also intend to sell 14mm shares)
. Repay debt
. Note: selling stockholders include Madison Dearborn Capital Partners (11.1mmshares), with the
balance by co-investment funds
===================
EDENOR	EDN, C+, 7
large electricity distribution co						Post-IPO shrs: 45mmADS equivalents
Buenos Aires, Argentina	2003	2004	2005	2006*		IPO Mkt
Rev ($mm)			pesos	$459	<=*US GAAP	Cap (mm)
Gross margin %			11%	11%		$765
Operating income %			-2.5%	2.9%		@$15
Profit (loss)				-$15
Profit (loss) %			-12%	-3%
Energy Sales (GWh)	5150	5413	5819	6250
Customers (thousands)	2317	2553	2404	2445
Energy Sales/customer	2.2	2.1	2.4	2.6
Note:
. Above figures based on US GAAP and
. Are substantially different than under Argentine GAAP
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
EDENOR (EDN)	$765	1.7	-51	0.8	1.3	34%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	1	3	1	7
Business
. Distributes electricity on an exclusive basis to the northwestern zone of the greater Buenos Aires
metropolitan area and the northern portion of the City of Buenos Aires, comprising an area of
4,637 square kilometers, with a population of approximately seven million people.
. Has the exclusive right to distribute electricity to all users within the concession area, including
to wholesale electricity market participants.
. At December 31, 2006, had 2,444,989 customers.
Markets
Serves two markets:
. The regulated market, which is comprised of users who are unable to purchase their electricity
requirements directly through the wholesale electricity market, and
. The unregulated market, which is comprised of large users that purchase their electricity
requirements directly from generators in the wholesale electricity market.
The terms and conditions of services and the tariffs charged users in both the regulated and
unregulated markets are regulated by the ENRE.
Argentina's risk profile has improved considerably:
. According to Reuters, based on the U.S. Dollar-denominated BODEN 2012 bond spread over the
comparable U.S. treasury note
. Argentina's country risk premium decreased from 4,765 basis points as of December 31, 2004 to
471 basis points as of December 31, 2005, and further decreased to 235 basis points as of
December 31, 2006.
. On February 6, 2007, Argentina registered its lowest ever risk premium at 189 basis points.
Argentina's risk premium was 215 basis points as of March 30, 2007
Economic recovery
Beginning in the second half of 2002, Argentina experienced economic growth driven primarily
by exports and import-substitution, both facilitated by the lasting effect of the devaluation of the
Peso in January 2002.
Restructuring of External Debt
. In June 2005, the Argentine government completed a restructuring of Argentina's public external
debt, which had been in default since December 2001.
. Argentina reduced its outstanding principal amount of public debt from U.S.$191.3 billion to
U.S.$126.6 billion and extended payment terms. Approximately U.S.$19.5 billion of defaulted
bonds held by creditors who did not participate in the exchange offer remain outstanding
according to the Argentine Ministry of Economy and Production, Secretariat of Finance
. On January 3, 2006, Argentina completed an early repayment of all of its outstanding
indebtedness with the IMF, for an amount totaling approximately U.S.$10.0 billion owing under
credit lines.
Consolidation of Economic Recovery
o The economy has been recovering strongly since the economic crisis in 2002
o Fiscal policy has improved substantially in the last six years
o Monetary policy has remained expansionary:
. Real interest rates have remained negative since 2005, which has led to increased domestic
spending.
. The real exchange rate has been stabilized by the Central Bank through U.S. Dollar purchases in
the foreign exchange market. According to data published by INDEC, inflation was 6.1% in 2004,
12.3% in 2005, and 9.8% in 2006.
. The decrease in the rate of inflation in 2006 was due to a regime of price support arrangements
implemented by the Argentine government.
Use of $58mm in IPO Proceeds from sale of 3.74mm ADSs
(shareholders intend to sell 11.42mm shares, END will not receive any proceeds from the sale of
ADSs by the selling shareholders or Class B common shares by the Employee Stock Participation
Program).
. Pursuant to the terms of the restructured debt, END is required to use 25% of net cash proceeds
from the IPO offering to repurchase these debt instruments in the open market for two years
following the consummation of the offering
. Provided that END will have no obligation to purchase these debt instruments at a price greater
than their face value.
===================
EndoCeutics	ENCX, C, 5
hormones for cancer & endocrine disodrs			January 31 fiscal			Post-IPO shrs: 18m
Quebec (Quebec), Canada			2006	July 31, 2006 six months		IPO Mkt
Rev ($mm)			$1.5	n/a		Cap (mm)
Profit (loss)			-$1.4	-$1.8		$219
						@$12
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
EndoCeutics (ENCX)	$219	n/a	-61	4.1	4.2	32%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		1	2	0	2	5
Business
. Biopharmaceutical company developing hormone therapies for the treatment and prevention of
breast cancer and endocrine-related disorders, especially those affecting postmenopausal women
and aging men.
. Developing late-stage product candidates for the treatment and prevention of breast cancer and a
variety of conditions affecting postmenopausal women.
. Plans to commence three Phase III clinical trials in the next twelve months.
. Also supporting a Phase III clinical trial being conducted in collaboration with an academic
research institution evaluating one of ENCX's compounds.
Use of $61mm in IPO proceeds
o $8 million to make a payment to EndoResearch which, together with issuance to
EndoResearch of 12,499,900 of our common shares immediately prior to the completion of this
offering, constitute full consideration for the transfer to ENCX, effective upon the completion of this
offering, of a license granting us the exclusive right for the specified uses to a portfolio of its
patents and patent applications, the non-exclusive right to its related technology and rights in
specified collaborative agreements to which EndoResearch is a party;
o $670,000, estimated as of February 21, 2007, to reimburse EndoResearch upon completion of
this offering for drug development costs incurred by EndoResearch with respect to the clinical
research and development programs to be transferred to us, effective upon completion of this
offering, in conjunction with the above license and assignment of rights;
o $32.1 million to pay the anticipated direct costs to complete (through the preparation and
submission of an NDA) one ongoing collaborative Phase III clinical trial and three Phase III
clinical trials that ENCX expects to commence upon completion of the IPO
o $14.5 million to pay miscellaneous costs supporting the one ongoing and three planned Phase III
trials, such as quality assurance, monitoring of trials performed by CROs, compound control and
analysis, data management and other costs and expenses related to completing the trials, as well as
expected general and administrative expenses, such as rent payments for office facilities and
compensation of executive officers and employees; and
o $6 million to continue the development of preclinical product candidates
===================
OceanFreight	OCNF, C+, 6
startup to acquire ships						Post-IPO shrs: 13m
Athens, Greece		no operations				IPO Mkt
Rev ($mm)						Cap (mm)
Gross margin %						$257
Operating Income %						@$20
Profit (loss)
Profit (loss) %
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
OceanFreight (OCNF)	$257	n/a	n/a	1.3	1.3	84%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	1	1	6
Summary
.No operations until IPO proceeds applied to buy ships
.10% anticipated dividend rate
.Sweetheart deal for founders, see below, 83 times return in seven months
Dividend policy
. Anticipates a 10% annual rate
. Expect to pay dividends in the amount of $0.5125 per share to shareholders on a quarterly basis.
. $2.05 annual rate or 10%
We expect to pay a partial dividend in August 2007 in respect of the second quarter of 2007 in an
amount equal to $0.39 per share.
Business
. Newly formed development stage company that was incorporated on September 11, 2006 under
the laws of the Republic of the Marshall Islands.
. Has no history of operations or revenues and we will only produce revenues after the closing of
this offering.
Intends to buy seven vessels
Six Panamax drybulk carriers and one Capesize drybulk carrier in the Initial Fleet.
Management
Robert N. Cowen has agreed to serve as Chairman and Class B Director, Chief Executive Officer
and President.
. From 1999 to February 2005 he served as Chief Operating Officer of Overseas Shipholding
Group Inc. (NYSE: OSG, $2.65bb market cap), one of the world's largest owners and operators of
crude oil and products tankers in the international and U.S. flag markets and has been active in
other shipping segments including dry bulk and cruise.
. OSG's dividend yield is 1.5%
. From October 2005 until the end of 2006, Mr. Cowen served as a partner in the New York office
of the Washington D.C. based Venable LLP law firm where he focused on maritime related legal
issues.
. In 1993, Mr. Cowen was appointed Senior Vice Present and a Director of OSG, having been
appointed its General Counsel in 1989.
. During his tenure at OSG, Mr. Cowen played a key strategic role in managing all aspects of the
company's bulk shipping business and its other investment activities and in presenting the
company to the investment and banking communities
Founding shareholder makes 83 times his investment in seven months
Mr. Antonios Kandylidis, the son of one of the directors, Konstandinos Kandylidis, controls the
sole shareholder Basset Holdings Inc., or Basset.
. He invested $500,000 September 26, 2006
. Post-IPO Basset will own 15.6% of OCNF worth $41mm
. Which is a return of 83 times his initial investment.
CEO & CFO to receive $750,000 per year
Expects to pay an aggregate annual base salary of $750,000 to the Chief Executive Officer and the
Chief Financial Officer.
. In addition, the Chief Executive Officer and the Chief Financial Officer will receive in the
aggregate the equivalent of $1.8 million in the form of common stock, or 60,000 subordinated
shares and 30,000 restricted common shares
Directors to receive $150,000 per year plus stock
Non-executive directors will receive annual compensation in the aggregate amount of $150,000
plus reimbursement of their out-of-pocket expenses incurred while attending any meeting of
the board of directors or any board committee
Lease
. On April 5, 2007 entered into an agreement to lease office space in Athens, Greece, from Mr.
George Economou.
. The initial term of our lease is for the first six months following the closing of this offering at a
rent of 680 Euros per month.
Competition
. Operates in markets that are highly competitive and based primarily on supply and demand.
. Competes for charters on the basis of price, vessel location, size, age and condition of the vessel,
Use of $198mm in IPO proceeds
Aggregate purchase price of the vessels in the Initial Fleet is $311.9 million.
o $193.9 million to fund a portion of the aggregate purchase price of the seven vessels that OCNF
has agreed to acquire, subject to the completion of the IPO
o $4.5 million for general corporate purposes.
Expects to incur $118.0 million of indebtedness under a senior secured term loan to fund the
balance of the aggregate purchase price of the vessels in our Initial Fleet.
===================
Ocean Power Tech	OPTT, C, 6
electricity from ocean waves		April 30 fiscal				Post-IPO shrs: 10m
Pennington, NJ	2004	2005	2006	Jan 31, 06*	Jan 31, 07*	IPO Mkt
Rev ($mm)	$4.7	$5.4	$1.7	$1.5	$1.5	Cap (mm)
Gross Profit %	8%	4%	-18%	-31%	-39%	$214
Profit (loss)	-$3	$0	-$7	-$6	-$6	@$21
Profit (loss) %	-60%	-7%	-412%	-367%	-364%
				*nine months ended Jan 31
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Ocean Power TechOPTT	$214	35.7	-10	1.8	1.8	49%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		1	2	1	2	6
Summary
. Top line sales growth not visible
. Negative gross margins at current low volume
. A number of projects upcoming in the test phase could result in orders, but there is competition
Traded on the London market AIM since 2003, symbol OPT
AIM (Alternative Investment Market)
. Price range on the AIM ranged from $12 to $24 in the last year (expressed in $)
On April 5, 2007 the price was $23.05
Business
. Develops and commercializes proprietary systems that generate electricity by harnessing the
renewable energy of ocean waves.
. OPTT believes it is the leading wave energy company.
Two products
OPTT has been of ocean testing for nearly decade. The rising and falling of the waves moves the
buoy-like structure creating mechanical energy that OPTT's proprietary technologies converts into electricity
A utility PowerBuoy system capable of supplying electricity to a local or regional electric power
grid.
. Autonomous PowerBuoy system. designed to generate power for use independently of the power
grid in remote locations.
Customer concentration
> The US Navy has been the largest customer since fiscal 2002, and accounted for
. 57% of revenues in the nine months ended January 31, 2007,
. 61% of revenues in fiscal 2006,
. 57% of revenues in fiscal 2005 and
. 95% of revenues in fiscal 2004.
OPTT anticipates that the US Navy will continue to account for a substantial portion of revenue in
fiscal 2007 and, if OPTT's commercialization efforts are successful, its relative contribution to our
revenue will decline thereafter.
> Lockheed Martin was also a significant customer in fiscal 2006 and 2005, accounting for 22% of
revenues in fiscal 2006 and 32% of revenues in fiscal 2005.
Development marketing efforts
o Iberdrola S.A., or Iberdrola, which is a large electric utility company located in Spain and one of
the largest renewable energy producers in the world currently plans to deploy an initial 40kW
PowerBuoy system by October 2007.
o Iberdrola and Total to evaluate the development of a wave power station off the coast of France.
o The United States Navy to develop and build a wave power station at the US Marine Corps Base
in Oahu, Hawaii that we believe will serve as a prototype wave power station for the installation of
wave power stations at other US Navy bases. One PowerBuoy system was installed in connection
with this project for a total of eight months over a two-year period. OPTT plans to deploy an
improved system in April 2007.
o Lockheed Martin Corporation to market cooperatively with OPTT an autonomous PowerBuoy
system for use with Lockheed Martin equipment. Lockheed Martin successfully completed an
ocean test of an autonomous PowerBuoy system in September 2004.
o Other demonstration units are planned off the coast of New Jersey; Cornwall, England;
Reedsport, Oregon; and Orkney, Scotland
Intellectual property
. As of March 1, 2007, OPTT owned a total of 31 United States patents and 15 United States
patent applications, three of which are provisional patent applications.
. Has pending foreign counterparts to nine of the issued patents and six of the pending non
provisional patent applications.
Competition
. Sixteen companies expressed an interest to the Cornwall (England) South West of England
Regional Development Agency in participating in the development of a new Wave Hub power
station project off the coast of Cornwall, England.
. Three companies were ultimately selected: Ocean Prospect Ltd., a subsidiary of the Wind
Prospect group, Fred.Olsen Ltd. and OPTT.
Use of $95mm in IPO proceeds
o $25.0 million to construct demonstration wave power stations
o $25.0 million to fund minority investments in wave station projects to encourage market adoption
of wave power stations;
o $10.5 million to fund the continued development and commercialization of the PowerBuoy
system, including increases in system output;
o $7.5 million to fund the expansion of assembly, test and field service facilities;
o $4.0 million to expand our international sales and marketing capabilities; and
o balance for working capital and other general corporate purposes.
===================
Orexigen	OREX, C, 7
central nervous system disorder treamnt						Post-IPO shrs: 25m
San Diego, CA	2004	2004	2005	2006		IPO Mkt
Rev ($mm)			$0	$0		Cap (mm)
Profit (loss)	-$2	-$8	-$12	-$28		$299
						@$12
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Orexigen (OREX)	$299	n/a	-11	3.1	3.1	24%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	3	0	2	7
Business
. Biopharmaceutical company focused on the development of pharmaceutical product candidates
for the treatment of central nervous system, or CNS, disorders, with an initial focus on obesity
. Strategy involves combining individual generic drugs that have previously received regulatory
approval for other indications and, thus, have established post-marketing safety records.
. Systematically screen these drugs for synergistic CNS activity and combine them into new
product candidates that OREX believes addresses unmet medical needs and are patentable.
Testing
OREX is testing combinations of individual generic drugs in product candidates in an effort to
demonstrate adequate efficacy and safety for potential regulatory approval and have not yet
received regulatory approval of any product candidate.
Lead combination product candidates
Targeted for obesity are
. Contravetm, which is in a Phase III clinical trial, and
. Empatictm, which is in a Phase IIb clinical trial.
Strategic advantage
OREX believes that its existing in-licensed composition patents and, if issued, pending
composition patents, will prevent generic firms from manufacturing comparable formulations and
from marketing the constituent compounds together.
Intellectual property
. OREX relies on a combination of in-licensed patent rights, our own patent rights, trademarks,
trade secrets and know-how to protect Contrave and Empatic.
. Owns or has exclusive rights to 14 patent applications currently pending in the United States with
respect to various compositions, methods of use and formulations relating to Contrave and/or Empatic.
. Also has a number of patent applications currently pending in various foreign countries that
correspond to some of the pending U.S. applications.
Competition
. Several pharmaceutical products are approved for marketing in the United States with an obesity
indication.
. Phentermine is the most widely used, accounting for approximately 3,456,000 prescriptions in
the United States in 2006, or approximately $35 million in sales, according to IMS Health.
. Sibutramine is marketed in the United States by Abbott Laboratories under the brand name
Meridia. Sibutramine appears to suppress appetite by inhibiting the reuptake of serotonin,
norepinephrine and dopamine in the brain. In 2006, Meridia accounted for approximately 542,000
prescriptions in the United States, or approximately $59 million in sales, according to IMS Health.
. Orlistat is marketed in the United States by Roche Laboratories, Inc. under the brand name
Xenical. Orlistat works by inhibiting lipase, an enzyme that blocks the absorption of fat in the
gastrointestinal tract. In 2006, Xenical accounted for approximately 623,000 prescriptions in the
United States, or approximately $93 million in sales, according to IMS Health. Orlistat was
recently launched over-the-counter in the United States by GlaxoSmithKline under the brand name
Alli.
Late stage clinical development
Despite the large market opportunity for anti-obesity agents, there are relatively few competitive
products in late stage clinical development.
>. Rimonabant, which has been developed by Sanofi-Aventis under the U.S. brand name
Acomplia and in Europe as Zimulti, is the most advanced. Has been approved in certain countries
outside of the United States and
. Has received an approvable letter from the FDA relating to potential marketing in the United
States.
. Rimonabant is the first in a new class of anti-obesity drugs that work as antagonists at the
cannabinoid type 1, or CB-1, receptor. This is the same receptor that is stimulated by cannabis.
While rimonabant has shown efficacy (average 4.7kg or 4.85%) across several large Phase III
clinical trials at the highest dose tested, it has also been associated with significant CNS side
effects, including depression and related symptoms, according to a 2006 report published in
Drugs. The overall risk-to-benefit profile of rimonabant is yet to be defined.
> A number of other biotechnology and pharmaceutical companies have drugs in development for
obesity. These include Arena Pharmaceuticals, Inc., Amylin Pharmaceuticals, Inc., Alizyme plc,
Merck & Co., Inc., Peptimmune, Inc. and Vivus, Inc., among others.
. With the exception of Vivus, Inc., most of these efforts are directed toward a monotherapeutic
approach which OREX would expect to be subject to the same early plateau typically seen. Vivus,
Inc. has shown strong efficacy with a combination approach of phentermine and topiramate in a
single center study, according to that company's May 2006 press release.
Use of $65mm in IPO proceeds
o $55.0 million to fund clinical trials for Contrave and Empatic and other research and
development activities; and
o remainder to fund working capital and other general corporate purposes, including rent, salaries
and benefits, insurance and professional fees.
> OREX anticipatea that the net proceeds from the IPO, together with our existing cash, cash
equivalents and short-term investments and the borrowing capacity under a $17.0 million credit
and security agreement with Merrill Lynch Capital, will allow OREX to initiate all of its planned
Phase III clinical trials for Contrave and complete the first Phase IIb clinical trial for Empatic.
===================
Pharmasset	VRUS, C, 6
hepatitus, HIV oral therapeutics						Post-IPO shrs: 22m
Princeton, NJ	2004(1)	2005(2)	2006(3)	Dec 2005*	Dec 2006*	IPO Mkt
Rev ($mm)	$2.7	$3.7	$5.4	$0.8	$8.0	Cap (mm)
Profit (loss)	-$5	-$14	-$11	-$3	$4	$280
Profit (loss) %	-185%	-370%	-204%	-375%	49%	@$13
Note: 2004--12 months ended Dec 31				*three months ended Dec 31
(1) 2004--12 months ended Dec 31
(2) 2005--9 months ended Sept 30, 2005
(3) 2006--12 months ended Sept 30, 2006
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Pharmasset (VRUS)	$280	8.7	18	2.9	2.9	28%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	0	2	6
Summary:
. Product candidates in Phase 1 and Phase 2 clinical trials
. Roche paid $7.5mm collaboration fees in the Dec 2006 quarter
. Roche expected to have paid $5mm in collcaboration fees for the March 2007 quarter
Business
. All product candidates are currently in development, and, therefore,
. VRUS does not expect to generate any direct revenue from drug product sales for at least the
next several years, if at all.
. Revenues to date have been generated primarily from milestone payments under collaboration
agreements, license fees, research funding and grants.
Two collaborations
. As of December 31, 2006, had received an aggregate of $28.8 million
> Incyte agreement terminated
. With Incyte for the development of DFC.
. On April 3, 2006, Incyte announced its decision to
discontinue its development of DFC. Incyte has subsequently terminated its agreement.
> Roche agreement continues
. Received $2.1 million in payments during the nine months ended September 30, 2005, $2.5
million during the year ended September 30, 2006 and $7.5 million during the three months ended
December 31, 2006.
. Under the current terms of the Roche collaboration agreement if VRUS succeeds in obtaining all
of the regulatory approvals specified in the agreement for PSI-6130 or a pro-drug of PSI-6130,
including R7128, the maximum development and commercialization milestone and research
funding payments payable to VRUS are $135.0 million and $375,000, respectively.
. Expects to receive from Roche $5.0 million of the above described milestone payments in the
quarter ending March 31, 2007 due to the initiation, in February 2007, of the multiple ascending
dose portion of the ongoing Phase 1 clinical trial of R7128.
. Under the terms of our agreement with Roche, also entitled to receive a $7.5 million milestone
payment if and when this Phase 1 clinical trial is successfully completed or upon initiation of the
first Phase 2 clinical trial.
. Expects revenues for the next several years to be derived primarily from payments under the
current collaboration agreement with Roche and any additional collaborations
Risk
Generic versions of drugs may become available; VRUS expects to face competition from these
generic drugs, including price-based competition.
. Several of the FDA-approved individual and combination products face patent expiration in the
next several years, that VRUS expects may compete with its products.
. Pressure from AIDS awareness and other social activist groups to reduce HIV drug prices may
put downward pressure on the prices of HIV drugs, including Racivir and DFC if they are
commercialized.
Intellectual property
. As of March 31, 2007, VRUS held or licensed 566 issued patents and pending patent applications
directed to VRUS technologies, including recently discovered product candidates.
. As of March 31, 2007, VRUS owned patent portfolio includes 11 issued U.S. patents, 17 issued
foreign patents, 21 U.S. applications and 193 foreign applications,
. While VRUS’s in-licensed patent portfolio includes 49 issued U.S. patents, 149 issued foreign
patents, 14 U.S. applications and 112 foreign applications.
Competition
VRUS believes that a significant number of drugs are currently under development and will
become available in the future for the treatment of HBV, HCV and HIV.
Use of $70mm in IPO proceeds
. To advance the clinical development program for clevudine into Phase 3 clinical trials.
. Currently estimates that these clinical trials for clevudine will cost $72.0 million, exclusive of the
internal personnel costs associated with conducting these trials, to progress the clinical program to
the filing of a New Drug Application with the FDA.
. In the event that VRUS incurs additional costs in connection with these trials or the net proceeds
of this offering plus existing funds is less than $72.0 million, VRUS would need to raise additional
capital through public or private equity offerings or debt financings to complete these clinical
trials.
===================
Vaughan Foods	FOOD, C, 5
regional food processor/packager						Post-IPO shrs: 5m
Moore, OK		2004	2005	2006	2006*	IPO Mkt
Rev ($mm)		$46	$45	$51	$69	Cap (mm)
Gross margin %		17%	15%	12%	16%	$37
Profit (loss)		$0	$0	-$1	-$1	@$7.5
Profit (loss) %		1%	-0.4%	-2%	-1%	units
				*proforma with Allison's Kitchen
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Vaughan Foods FOOD-u	$37	0.5	-53	2.8	3.2	41%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	1	1	1	5
Unit offering, stock & warrants
Business
. Processes and packaged value-added, refrigerated foods which FOOD distributes to customers
three or more times per week in a fleet of refrigerated trucks and trailers.
. Distribution is concentrated in the 12-state marketing area within a 500 mile radius of our plant
in Moore, Oklahoma, a suburb of Oklahoma City, consisting of all or portions of the states of
Arkansas, Colorado, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, Oklahoma, New
Mexico, Tennessee and Texas.
. Marketing area is largely determined by the short shelf life of products and, to a lesser extent, by
the cost of refrigerated shipping.
Use of $12.5mm in IPO proceeds
* expand existing production facility and repay debt used to continue work on this expansion;
* acquire the minority interest in Allison's;
* build a new facility;
* pay debt; and
* increase working capital.
===================

Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop
Pre-IPO analysis, grading & scoring -- updated April 11
. 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
===================
SEARCH BY COMPANY		In your browser use 'Edit/Find' to search for companies
or ticker for analysis		scheduled below
===================
April 16 week IPO schedule
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
MetroPCS Com (PCS)	$6,926	4.5	128	4.3	-15.0	14%
Wireless communication service: B-, 8						Post-IPO shrs: 346m

Simcere Pharma (SCR)	$844	7.0	48	4.1	4.8	25%
branded generic pharmaceuticals in China: B-, 8						Post-IPO shrs: 63m

Superior Offshore DEEP	$386	1.6	7.9	2.5	2.5	34%
subsea services to oil/gas industry: C+, 7						Post-IPO shrs: 26m
===================
April 16 week IPO analysis
MetroPCS Communica	PCS, B-, 8
Wireless communication service						Post-IPO shrs: 346m
Dallas, TX	2003	2004	2005	2006		IPO Mkt
Rev ($mm)	$451	$748	$1,038	$1,546		Cap (mm)
Operating Income %	9%	17%	41%	16%		$6,926
Profit (loss) ($mm)	$15	$65	$199	$54		@$20
Profit (loss) %	3%	9%	19%	3%
EBITDA %	20%	27%	28%	26%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
MetroPCS Com (PCS)	$6,926	4.5	128	4.3	-15.0	14%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	3	2	1	8
Compare & contrast
	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
VALUATION RATIOS	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
MetroPCS Com (PCS)	$6,926	4.5	128	4.3	-15.0	14%
Leap Wireless (LEAP)	$4,820	4.2	-294	2.7	-16.8	@$71

	IPO Mrkt		EBITDA % of Rev	2006	Price/
OTHER RATIOS	Cap (mm)	2005	2006	EBITDA	EBITDA
MetroPCS Com (PCS)	$6,926	28%	26%	$396	5.7
Leap Wireless (LEAP)	$4,820	30%	26%	$292	6.1
Different business philosophies
. PCS spends more on service and equipment costs by 16% (of revenues)
. LEAP spends about the same (15%) more than PCS in Sales, Marketing, General & Administrative costs.
Note: LEAP emerged from bankruptcy proceedings, for financial statement purposes, in August 2004
Business
. Offer wireless broadband personal communication services, or PCS, on a no long-term contract, flat rate,
unlimited usage basis in selected major metropolitan areas in the United States.
. Since PCS launched wireless service in 2002, PCS has been among the fastest growing wireless
broadband
PCS providers in the United States as measured by growth in subscribers and revenues during that period
. Currently own or have access to wireless licenses covering a population of approximately 140 million in
the United States, which includes 14 of the top 25 largest metropolitan areas in the country.
. As of December 31, 2006, had launched service in seven of the top 25 largest metropolitan areas covering
a licensed population of approximately 39 million and had approximately 2.9 million total subscribers,
representing a 53% growth rate over total subscribers as of December 31, 2005.
. As of March 31, 2007, we had approximately 3.4 million subscribers.
Target market
. Targets a mass market which PCS believes is largely underserved by traditional wireless carriers.
. PCS's service, branded under the "MetroPCS" name, allows customers to place unlimited wireless calls
from within PCS service areas and to receive unlimited calls from any area under simple and affordable flat
monthly rate plans.
Services
. As of December 31, 2006, over 85% of customers selected either a $40 or $45 rate plan.
. PCS's flat rate plans differentiate its service from the more complex plans and long-term contract
requirements of traditional wireless carriers.
Performance
> Core markets
. Launched our service initially in 2002 in the Miami, Atlanta, Sacramento and San Francisco metropolitan
areas, which PCS refers to as its Core Markets and which currently comprise the Core Markets segment
. Core Markets have a licensed population of approximately 26 million, of which PCS networks cover
approximately 22 million as of December 31, 2006.
. In PCS's Core Markets the company reached the one million customer mark after eight full quarters of
operation, and as of December 31, 2006 we served approximately 2.3 million customers, representing a
customer penetration of covered population of 10.2%.
. Reported positive adjusted earnings before depreciation and amortization and non-cash stock-based
compensation, or Core Markets segment Adjusted EBITDA, in our Core Markets segment after only four
full quarters of operation.
. As of March 31, 2007, served approximately 2.5 million customers, representing a customer penetration
of covered population of 11.0%.
. Core Markets segment Adjusted EBITDA for the year ended December 31, 2006, was $493 million,
representing a 56% increase over the comparable period in 2005 and representing 43% of our segment
service revenue
> However, the future is expected to be more competitive than the past - see comments about LEAP and
Sprint, below
Results to date not indicative
. As a result of the significant growth PSC has experienced since it launched operations, results of
operations to date are not necessarily indicative of the results that can be expected in future periods.
. In November 2006, was granted advanced wireless services, or AWS, licenses covering a total unique
population of approximately 117 million for an aggregate purchase price of approximately $1.4 billion
Coverage
. Wireless telecommunications carrier that currently offers wireless broadband personal communication
services, or PCS, primarily in the greater Atlanta, Dallas/Ft. Worth, Detroit, Miami, San Francisco,
Sacramento and Tampa/Sarasota/Orlando metropolitan areas.
. Launched service in the greater Atlanta, Miami and Sacramento metropolitan areas in the first quarter of
2002; in San Francisco in September 2002; in Tampa/Sarasota in October 2005; in Dallas/Ft. Worth in
March 2006; in Detroit in April 2006; and Orlando in November 2006.
. Expects to begin offering services in Los Angeles in the second or third quarter of 2007 through
arrangements with Royal Street Royal Street Communications, LLC ("Royal Street"), a company in which
PCS owns 85% of the limited liability company member interests
Auction 66 licenses
. In November 2006, was granted licenses covering a total unique population of approximately 117 million
which were acquired from the Federal Communications Commission, or FCC, in the spectrum auction
denominated as Auction 66, for a total aggregate purchase price of approximately $1.4 billion.
. Approximately 69 million of the total licensed population associated with Auction 66 licenses represents
expansion opportunities in geographic areas outside of PCS's Core and Expansion Markets, which PCS
refer to as its Auction 66 Markets.
. These new expansion opportunities in PCS's Auction 66 Markets cover six of the 25 largest metropolitan
areas in the United States.
. The balance of PCS's Auction 66 Markets, which cover a population of approximately 48 million,
supplements or expands the geographic boundaries of existing operations in Dallas/Ft. Worth, Detroit, Los
Angeles, San Francisco and Sacramento.
Growth strategy
o Target the underserved customer segments in PCS's markets;
o Offer affordable, fixed price unlimited calling plans with no long-term service contract;
o Remain one of the lowest cost wireless telephone service providers in the United States; and
o Expand into new attractive markets.
Expansion plans
. PCS currently plans to focus on building out approximately 40 million of the total population in its
Auction 66 Markets with a primary focus on the New York, Philadelphia, Boston and Las Vegas
metropolitan areas.
. Of the approximate 40 million total population, PCS is targeting launch of operations with an initial
covered population of approximately 30 to 32 million by late 2008 or early 2009.
. Total estimated capital expenditures to the launch of these operations are expected to be between $18 and
$20 per covered population, which equates to a total capital investment of approximately $550 million to
$650 million.
. Total estimated expenditures, including capital expenditures, to become free cash flow positive, defined as
Adjusted EBITDA less capital expenditures, is expected to be approximately $29 to $30 per covered
population, which equates to $875 million to $1.0 billion based on an estimated initial covered population
of approximately 30 to 32 million.
. PCS believes that its existing cash, cash equivalents and short-term investments, proceeds from this
offering, and our anticipated cash flows from operations will be sufficient to fully fund this planned
expansion.
Intellectual property
A patent infringement suit has been filed against PCS by Leap Wireless on June 14, 2006, which could
have a material adverse effect on the business or results of operations.
Primary current competitor (Sprint is market testing a similar pricing policy)
> Leap Wireless International Inc. (LEAP), $4.9bb market cap
. Operates as a wireless communications carrier in the United States dba Cricket
. Offers digital wireless service, including voice and data services
. Provides customers with unlimited local and domestic long distance service combined with unlimited use
of multiple calling features and messaging services.
As of April 3, 2007 LEAP's new rate plans is as follows:
* $35 Unlimited Basic, includes unlimited anytime minutes and unlimited text, picture and instant
messaging
* $40 Unlimited Plus, includes unlimited anytime minutes; unlimited U.S. long distance; and unlimited
text, picture and instant messaging
* $45 Unlimited Access, includes unlimited anytime minutes; unlimited U.S. long distance; unlimited text,
picture and instant messaging; voice mail, caller ID, call waiting & 3-way calling; and home calling in all
Cricket markets.
* $50 Unlimited Ultimate (available in late April), includes unlimited anytime minutes; unlimited U.S. long
distance, unlimited text, picture and instant messaging, home calling in all Cricket markets; unlimited
mobile Web access; unlimited directory assistance; and call forwarding.
* $55 Unlimited Access + TT, includes unlimited anytime minutes; unlimited U.S. long distance; unlimited
text, picture and instant messaging; voice mail, caller ID, call waiting & 3-way calling; home calling in all
Cricket markets; and 100 Nationwide minutes.
* $60 Unlimited Plus + TT, includes unlimited anytime minutes; unlimited U.S. long distance; unlimited
text, picture and instant messaging; voice mail, caller ID, call waiting & 3-way calling; home calling in all
Cricket markets; and 200 Nationwide minutes.
. The $55 and $60 rate plans are the first to include nationwide minutes in the Cricket lineup. The plans
allow Cricket customers the convenience to roam anywhere in the continental United States, knowing they
are backed by Cricket's reliable service. The $55 rate plan provides customers with 100 nationwide
minutes, and the $60 rate plan provides customers with 200 nationwide minutes.
Market opportunity as defined by LEAP
. Contract-based wireless plans are rapidly reaching market saturation.
. Wall Street analysts predict U.S. wireless penetration will reach 80 percent by 2010.
. Additional penetration is expected to come from the market segments Cricket currently serves.
. Cricket delivers adjusted EBITDA margins similar to other leading wireless telecommunications
companies, but from an average rate per user that is one-third less than the industry average.
. As the face of wireless changes, Cricket is well positioned to capture this opportunity and increase its
market share.
LEAP's target customer segment
. LEAP services are targeted primarily toward market segments underserved by traditional communications
companies.
. On average, LEAP's customers tend to be younger and have lower incomes than the customers of other
wireless carriers.
. Moreover, LEAP's customer base also reflects a greater percentage of ethnic minorities than those of the
national carriers.
. LEAP believes these underserved market segments are among the fastest growing population segments in
the U.S.
Overall competition
. Sprint Nextel recently announced that it will offer on a trial basis an unlimited local calling plan under its
Boost brand in certain of the geographic areas in which PCS offers service or plans to offer service,
including San Francisco, Sacramento, Dallas/Ft. Worth and Los Angeles
. The wireless industry is dominated by national carriers, such as Cingular Wireless, Verizon Wireless,
Sprint Nextel and T-Mobile and their prepaid affiliates or brands, which have an estimated 84% of the
national wireless market share as measured by number of subscribers, according to the Federal
Communications Commission's Annual Report and Analysis of Competitive Market Conditions with
Respect to Commercial Mobile Services, FCC 06-142, released September 29, 2006.
. National carriers typically offer post-paid plans that require long-term contracts and credit checks or
deposits.
. Over the past few years, the wireless industry has seen an emergence of several new competitors that
provide either pay-as-you-go or prepaid wireless services.
> Mobile Virtual Network Operators (MVNOs)
. Some of these competitors, such as Virgin Mobile USA, Amp'd Mobile and Tracfone, are non-facility
based mobile virtual network operators, or MVNOs, that contract with wireless network operators to
provide a separately branded wireless service.
. These MVNOs typically also charge by the minute rather than offering flat-rate unlimited service plans. In
addition, several large satellite companies, computer companies, and Internet search and portal companies
have indicated an interest in establishing next generation wireless networks and VoIP providers have
indicated that they may offer wireless services over a Wi-Fi/Cellular network to compete directly with us.
> Unlimited fixed-rate plans
. Some companies, such as Leap Wireless d/b/a Cricket and Sure West Wireless, are regional carriers with
unlimited fixed-rate service plans similar to PCS.
. Sprint Nextel recently announced that it will offer on a trial basis an unlimited local calling plan under its
Boost brand in certain of the geographic areas in which PCS offers or plans to offer service.
> Thus, PCS compete withs both the national carriers, the prepaid, pay-as-you-go service providers and in
some cases regional and local carriers, and may face additional competition from new entrants with
substantial resources in the future
> The wireline industry is also dominated by large incumbent carriers, such as AT&T, Verizon, and
BellSouth, and competitive local exchange or Voice-Over-Internet-Protocol, or VoIP, service providers,
such as Vonage, McLeod USA, and XO Communications.
> The cable industry is also dominated by large carriers
. Such as Time Warner Cable, Comcast and Cox Communications
. These cable companies formed a joint venture along with Sprint Nextel and Bright House Networks called
SpectrumCo LLC, or SpectrumCo, which bid on and acquired 20 MHz of AWS spectrum in a number of
major metropolitan areas throughout the United States, including all of the major metropolitan areas which
comprise our Core, Expansion and Auction 66 Markets.
> WiMax and 700 MHz band
. PCS may face competition from providers of an emerging technology known as Worldwide
Interoperability for Microwave Access, or WiMax, which is capable of supporting wireless transmissions
suitable for mobility applications.
. Also, certain mobile satellite providers recently have received authority to offer ancillary terrestrial
service and a coalition of companies which includes DIRECTTV Group, EchoStar, Google, Inc., Intel
Corp. and Yahoo! has indicated its desire to establish next generation wireless networks and technologies
in the 700 MHz band.
. These technologies may have advantages over PCS's technology that customers may ultimately find more
attractive.
Use of $713mm in IPO proceeds
Primarily to build-out PCS's network and launch services in certain recently acquired Auction 66 Markets,
with a primary focus on the New York, Philadelphia, Boston and Las Vegas metropolitan areas, as well as
for general corporate purposes.
===================
Simcere Pharmaceutical	SCR, B-, 8
branded generic pharmaceuticals in China.						Post-IPO shrs: 63m
Jiangsu Province, China		2004	2005	2006		IPO Mkt
Rev ($mm)				$121		Cap (mm)
Gross margin %		73%	77%	80%		$844
Operating Income %		15%	20%	20%		@$13.5
Profit (loss) %		8%	14%	18%
Taxed				14%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Simcere Pharma (SCR)	$844	7.0	48	4.1	4.8	25%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	2	8
ADR offering, each ADR represents two shares
Business
> A leading manufacturer and supplier of branded generic pharmaceuticals in the fast growing
China market.
> Recently focused strategy on the development of first-to-market generic and innovative
pharmaceuticals
. Has introduced a first-to-market generic anti-stroke medication under the brand name Bicun and,
. An innovative anti-cancer medication under the brand name Endu, also known as Endostar.
Current overview
. Currently manufactures and sells 35 pharmaceutical products, including antibiotics, an anti-
cancer medication and an anti-stroke medication, and is the exclusive distributor of three
additional pharmaceuticals that are marketed under SCR brand names, including anti
inflammatory pain relievers.
. In addition, has obtained approvals from the PRC State Food and Drug Administration, or the
SFDA, to manufacture and sell over 100 other products.
. As of March 31, 2007, also had 12 product candidates in various stages of development,
including treatments for cancer, cerebrovascular diseases, infections, rheumatoid arthritis, nasal
allergies, and nausea and vomiting associated with chemotherapy.
Market share
> Bicum
. SCR's generic anti-stroke medication Bicun was the first edaravone injection, a type of
neuroprotective pharmaceutical compound, approved for sale in China
. SCR estimates that Bicun held the leading market share of more than 90.0% in terms of total
edaravone injections sold in China in 2005, based on the market research conducted by IMS
Health, a provider of market intelligence to the pharmaceutical and healthcare industry.
> Zailin
. SCR's generic amoxicillin granule antibiotic is marketed under the brand name Zailin, which
was recognized as a "China Well-Known Trademark" in February 2004.
. In 2005, Zailin had a leading market share of 55.5% and 31.3% of all amoxicillin granules sold
in hospitals and retail outlets in China, respectively, based on the information provided by the
Southern Pharmaceutical Economic Research Institute, a market research agency that specializes
in the pharmaceutical industry in China.
Endu
SCR's innovative anti-cancer medication Endu has been granted an invention patent in China and
was the first recombinant human endostatin injection approved for sale in China.
. Recombinant human endostatin is a genetically engineered protein that interferes with the growth
of blood vessels to a tumor, thereby starving and preventing the growth of tumor cells.
Business & history
. Began operations in March 1995 as a distributor of pharmaceutical products
. Since then has established an extensive distribution network in China that SCR now uses to
market, sell and distribute its own pharmaceutical products.
. Sells products exclusively to regional distributors, who then sell them to local distributors,
hospitals and retail pharmacies throughout China.
. SCR's marketing team leverages the reputation of its Simcere brand name and SCR's well
known branded pharmaceuticals to cross-sell our other pharmaceuticals.
. Also have dedicated brand management, market research and sales support teams to further
enhance the effectiveness of these marketing efforts.
Business & market growth drivers
. Growth of the pharmaceutical market in China;
. SCR's ability to successfully develop, acquire and launch first-to-market branded generic and
innovative pharmaceuticals;
. Inclusion of SCR's pharmaceuticals in the Chinese Medical Insurance Catalogs;
. SCR's ability to compete in the tender processes for purchase of medicines by state-owned and
state-controlled Chinese hospitals; and
. Product pricing and price controls.
Challenges for the Pharmaceutical Industry in China and Increase in Competition
. Patent law in China may not be effectively implemented, deterring multinational pharmaceutical
companies from entering the market, thereby depriving China of innovative pharmaceuticals or
hindering the technological advancement of the pharmaceutical industry.
. Price cuts and price controls might also negatively impact the growth of the pharmaceutical
industry.
. Adverse changes in the government policy in China could also have an adverse effect on the
economic growth of China, which could reduce the growth and demand for pharmaceutical
products.
. Competition in the pharmaceutical market in China may also intensify. Industry reforms aimed to
meet the WTO requirements may foster increased competition from multinational pharmaceutical
manufacturers at the expense of China-based pharmaceutical companies.
. For example, tariffs on imported pharmaceuticals have been reduced from 14.0% in 1999 to
approximately 5.0% in 2005 as part of the compliance with WTO standards. China plans to
eliminate all pharmaceutical tariffs by 2007, which is expected to further increase the
competitiveness of imported pharmaceuticals.
Competition
There were 4,738 pharmaceutical manufacturers in China as of December 31, 2004. In 2005, the
top 10 manufacturers accounted for approximately 23.0% of the total revenues of the
pharmaceuticals market in China according to the Freedonia Group, with no single manufacturer
holding more than 4.0% of the market. Competitors vary by product:
> Endu
Currently no directly competitive products as Endu is the first recombinant human endostatin
injection approved for sale in China. However, Endu indirectly competes with other types of
cancer treatments currently available in China.
> Bicun
Main competitive product is Yidasheng, which is manufactured by Jilin Boda Pharmaceutical Co.,
Ltd. in China. Based on market research conducted by IMS Health, Bicun held the leading market
share of more than 90.0% in terms of total edaravone injections sold in China in 2005.
> Zailin
Main competitive product is Amoxian, manufactured by Zhuhai United Laboratories
Pharmaceutical Co., Ltd. and had a 2005 market share of 20.3% and 17.8% of all amoxicillin
granules sold in hospitals and retail outlets in China, respectively, based on the information
provided by the Southern Pharmaceutical Economic Research Institute.
> Anqi
Main competitive products are Anmiejun, which is manufactured by North China Pharmaceutical
Group Corporation and had a market share of 19.3% of all amoxicillin with clavulanate potassium
sold in hospitals in China in 2005, and Bomeixin, which is manufactured by Shenyang Shide
Pharmaceutical Co., Ltd. and had a market share of 37.7% of all amoxicillin with clavulanate
potassium sold in retail outlets in China in 2005, based on information provided by the Southern
Pharmaceutical Economic Research Institute.
> Yingtaiqing
Main competitive products are Votalin, which is manufactured by Beijing Novartis Pharma Ltd.
and had a 2005 market share of 26.3% and 36.3% of all diclofenac sodium capsules and gelatin
sold in hospitals and retail outlets in China, respectively, and Difene, which is manufactured by
Klinge Pharma GmbH of Germany and had a 2005 market share of 19.0% and 12.6% of all
diclofenac sodium capsules and gelatin sold in hospitals and retail outlets in China, respectively,
according to research conducted by IMS Health.
> Biqi
Main competitive products are Smecta, which is manufactured by Beaufour-Ipsen (Tianjin)
Pharmaceutical Co., Ltd., and Kenteling, which is manufactured by Zhejiang Hailisheng Group
Co., Ltd.. Smecta and Kenteling had market shares of 73.2% and 15.6%, respectively, of all
smectite powder sold in hospitals in China in 2005, respectively
Use of $151mm in IPO proceeds from sale of 12.5mm ADRs
(shareholders intend to sell 3.125mm ADRs)
.> $52.0 million to fund research and development efforts as follows;
. $35.0 million to fund joint pre-clinical studies and clinical trials in China with international
pharmaceutical and biotechnology companies to develop innovative pharmaceuticals for the China
market.
. In particular, $5.0 million to fund the joint research and development of an anti-cancer
pharmaceutical with Advenchen Laboratories LLC, or Advenchen, a pharmaceutical research and
development company in the United States, based on a chemical compound owned by Advenchen.
. While SCR is active discussions with several other international pharmaceutical and
biotechnology companies regarding potential research and development projects, no other specific
project has been identified, nor has SCR entered into any other definitive agreement for any other
project.
. SCR anticipates that these IPO proceeds will allow SCR to fund such research and development
efforts for at least the next 24 months
> $13.0 million to fund the research and development of potential indications for Endu, the Phase
IV clinical trials for Endu, and the improvement of delivery mechanisms or dosage formulations
for Endu. SCR anticipates that these proceeds together with existing cash will allow SCR to
perform Phase IV clinical trials for Endu for at least the next 24 months; and
> $4.0 million to purchase research equipment;
> $30.0 million to repay debt
> $14.0 million to fund GMP-certified production facilities, including approximately $9.0 million
to build additional GMP-certified production facilities and purchase additional production
equipment to expand production capacity of Endu, and $5.0 million to revamp existing production
facilities and to purchase additional equipment to maintain compliance with GMP requirements
> $13.0 million to expand themarketing force and strengthen marketing efforts, including
initiating additional promotional and educational campaigns targeting healthcare practitioners,
pharmacies, patients and the general public to increase awareness of our products and to increase
the use of print and television advertisements and other promotional methods to promote our
brand names.
===================
Superior Offshore Intern	DEEP, C+, 7
subsea services to oil/gas industry						Post-IPO shrs: 26m
Lafayette, LA	2003	2004	2005	2006		IPO Mkt
Rev ($mm)	$11	$24	$82	$243		Cap (mm)
Cost of services %	70%	61%	50%	54%		$386
Profit (loss) ($mm)	($1)	$2	$14	$49		@$15
Profit (loss) %	-6%	7%	17%	20%
EBITDA %	-1%	15%	28%	32%
Vessel utilization	29%	63%	76%	89%
	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
VALUATION RATIOS	Cap (mm)	Sales*	Earnings*	BookValue	TangibleBV	in IPO
Superior Offshore DEEP	$386	1.6	8	2.5	2.5	34%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7
Compare & Contrast	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
VALUATION RATIOS	Cap (mm)	Sales*	Earnings*	BookValue	TangibleBV	in IPO
Cal Dive International (DVR)	$1,260	2.5	10.6	8.0	9.6	10%
Horizon Offshore Inc. (HOFF)	$475	0.9	7.1	1.6	1.7	27%
Oceaneering Intern'l (OII)	$2,490	1.9	20.1	3.6	4.2	5%
Superior Offshore DEEP	$386	1.6	7.9	2.5	2.5	34%
Business
. A leading provider of subsea construction and commercial diving services to the crude oil and
natural gas exploration and production and gathering and transmission industries on the outer
continental shelf of the Gulf of Mexico.
. Subsea construction services include installation, upgrading and decommissioning of pipelines
and production infrastructure, and our commercial diving services include recurring inspection,
maintenance and repair services as well as support services for subsea construction and salvage
operations.
. Performs services in both surface and saturation diving modes in water depths of up to 1,000
feet.
. Also operate a fabrication business that supports our subsea construction and commercial diving
operations, increasing our ability to complete projects on a timely and cost-effective basis.
First Quarter 2007 Update
. Expects that our revenues for the first quarter of 2007 will be in the range of $50 million to $53
million compared with $49.4 million in the first quarter of 2006 and $69.0 million in the fourth
quarter of 2006.
. Expects that income from operations for the first quarter of 2007 will be in the range of $9
million to $12 million compared with $18.7 million in the first quarter of 2006 and $14.8 million
in the fourth quarter of 2006.
Reasons for drop in operating income
Revenues for the first quarter of 2007 were adversely affected by a decrease in vessel revenue
days from owned and long-term charters when compared to both the first and fourth quarters of
'2006.
. This decrease in vessel revenue days is partially attributable to the drydocking of the Superior
Endeavour for scheduled upgrades beginning in early February 2007, which has resulted in a loss
of more than 50 vessel revenue days since the vessel has been out of service.
. DEEO expects to place this vessel back in service in the second quarter of 2007.
. Vessel revenue days also suffered from lower utilization of four-point vessels, which resulted
from winter weather conditions in the U.S. Gulf of Mexico that historically affect vessel
utilization in the first quarter of each year.
. Also DEEP experienced higher utilization of four-point vessels in the first quarter of 2006 than
DEEP would normally expect because certain customers paid us standby rates to ensure that
vessels were available to make significant hurricane related repairs as weather improved.
. Expects that the utilization of vessels will increase in the second quarter of 2007 relative to the
first quarter.
Workforce
. DEEP believes that it has one of the largest workforces of diving personnel dedicated to subsea
construction and commercial diving activities in the U.S. Gulf of Mexico
. With 665 diving and marine personnel, including 315 contract personnel, as of March 7, 2007.
Fleet
. DEEP's fleet currently consists of four dynamically positioned, or DP, vessels and five four
point vessels.
. Also provides saturation diving services and technical resources on a contract basis to the Toisa
Proteus, a DP vessel owned and operated by a third party, and has entered into a contract for the
construction of the Superior Achiever, a 430-foot, DP III deepwater construction and dive support
vessel, which DEEP expects to place in service in the second half of 2008.
Vessel utilization
. Typically lower during the first quarter, and to a lesser extent the fourth quarter, due to winter
weather conditions in the Gulf of Mexico.
. However, due to high demand caused by hurricane-related repair work, DEEP is not
experiencing typical seasonal trends in the current market environment.
Customers
. Include most of the top 20 crude oil and natural gas producers and most of the top 20 gathering
and transmission companies operating on the outer continental shelf of the U.S. Gulf of Mexico. .
Over the last two years, has performed services for over 120 customers, and currently maintains
master services agreements with approximately 150 companies.
Spending varies by year
. The amount of capital spending by customers varies from year to year due to the concentrated
nature of construction and installation expenditures and the unpredictability of repair work.
. Two largest customers for the year ended December 31, 2005 were El Paso Corporation and one
of its subsidiaries, Southern Natural Gas Company.
. Two largest customers for the year ended December 31, 2006 were Newfield Exploration
Company and The Williams Companies, Inc.
. No other customer accounted for more than 10% of revenues in either period.
Competitors
. Primary competitors are Cal Dive International, Inc., Horizon Offshore, Inc., Epic Divers, Inc.,
Oceaneering International, Inc. and Veolia ES Industrial Services, Inc. (formerly Onyx Industrial
Services, Inc.).
. In response to increasing demand for subsea construction and commercial diving services in the
U.S. Gulf of Mexico, existing diving companies have added new equipment to their operations
and new diving companies have begun operating in the region.
. As large international companies relocate diving vessels to the U.S. Gulf of Mexico, or add to
their fleets through newbuilds or other acquisitions, levels of competition may increase
Use of $119mm in IPO proceeds
o repay, together with $44.0 million of the proceeds from senior secured term loan held in a
segregated account, $111.1 million of outstanding borrowings under senior secured term loan,
including prepayment premium;
o repay $7.0 million of outstanding borrowings under senior secured
o retain $17.3 million for future capital expenditures, including progress payments relating to the
construction of the Superior Achiever and the upgrade and refurbishment of the Gulf Diver IV; and
o pay a special cash dividend of $28.0 million to existing stockholders prior to the completion of
this offering.
===================
April 9 week IPO schedule
Comverge	COMV, C+, 7
increase grid reliability						Post-IPO shrs: 17m
East Hanover, New Jersey	2003	2004	2005	2006		IPO Mkt
Rev ($mm)	$15	$17	$23	$34		Cap (mm)
Gross Profit %	32%	44%	49%	50%		$270
Profit (loss) ($mm)	($9.3)	($9.3)	($8.0)	($6.0)		@$16
Profit (loss) %	-60%	-54%	-34%	-18%
	L:ast four quarters
	March	June	Sept	Dec
Rev ($mm)	$6	$4	$3	$21
Profit (loss) ($mm)	($2.8)	($5.2)	($4.5)	$6.3
Profit (loss) %	-47%	-141%	-141%	30%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales*	Earnings*	BookValue	TangibleBV	in IPO
Comverge (COMV)	$270	8.0	-45	3.6	3.6	28%
			*annualizing trailing 12 months
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7
Business
. Load management, demand response systems for utilities to increase available electric capacity
through reduced energy consumption during periods of peak energy demand
. Markets itself as a 'clean energy alternative' but that is somewhat of a misnomer, because
COMV is in the business of providing grid management & demand response systems
. As a result of investments in Virtual Peaking Capacity (VPC) programs (see below), revenue
from COMV's Alternative Energy Resources Group has represented an increasing percentage of
total revenue, growing from 7% of total revenue for the year ended December 31, 2004 to 52% of
total revenue for the year ended December 31, 2006.
. Strategic alliance with Air Products and Chemicals (APD, a stockholder): developing business
models to jointly recruit large commercial and industrial customers of Air Products as participants
in COMV's Virtual Peaking Capacity (VPC) programs;
Visible top line revenue--long term contracts
> Virtual Peaking Capacity
. Strong acceptance of COMV's existing VPC programs (see below), which were first introduced
in 2003, has led to long-term contracts with utility customers, as of February 28, 2007,
. That allows for $159.6 million in estimated payments through 2016.
. As of February 28, 2007, all of COMV's long-term contracts from the Smart Grid Solutions
Group and the Alternative Energy Resources Group allow for approximately $201.4 million in
estimated payments through 2016.
> Smart Grid Solutions Group Contracts:
. $39.2 million in payments expected to be received over the next eight years under a contract with
Gulf Power Company to provide products and services.
. This is based on estimated contractual minimum order volumes and current payments attributable
to installation and other services applied over the term of the contract.
COMV has won 100% of the Virtual Peaking Capacity (VPC) contracts (see below)
. COMV has won 100% of such contracts, having entered into five VPC contracts with four
customers: PacifiCorp, San Diego Gas & Electric Company, ISO New England Inc., and the
Public Service Company of New Mexico.
. In addition, COMV has been awarded one commercial and industrial pay-for-performance
contract, having entered into a VPC contract with Pacific Gas and Electric Company.
Negative effect on earnings
. In the short-term, COMV's success operating such contracts will have a negative effect on earnings
because of the consumer acquisition costs that COMV incurs during the installation phase of the contract.
. These increased costs may cause COMV to incur net losses for the foreseeable future.
Primary growth expected from Virtual Peaking Capacity (VPC) programs
First introduced VPC programs in 2003. COMV expects that the growth and acceptance of its
VPC programs will expand the growth of the business as a whole.
. As a result of investments in VPC programs, revenue from the Alternative Energy Resources
Group has represented an increasing percentage of total revenue
. Growing from 7% of total revenue for the year ended December 31, 2004 to 52% of total revenue
for the year ended December 31, 2006.
. As of December 31, 2006, VPC contracts in effect at that time represented potential capacity of
220 megawatts.
. Of this amount, COMV had built out 175 megawatts of capacity compared to 101 megawatts as
of December 31, 2005.
. Expects to incur $4.9 million in capital expenditures over the next two years to build out the
remaining 45 megawatts under VPC programs existing as of December 31, 2006,
. COMV completed the build out of its VPC program with ISO New England Inc. in 2006.
. Expects its VPC programs to be fully developed with PacifiCorp in 2007 and with San Diego
Gas & Electric Company in 2010.
Customer base
COMV's customer base of over 500 electric utilities includes 65% of the largest utility companies
in North America, with over 200 of COMV's customers having generated revenues over the last
four years in excess of $5,000.
. During the year ended December 31, 2006, COMV has two customers which accounted for 28%
and 16% of total revenues.
. COMV's top ten utility customers accounted for 78% of consolidated revenues for the year
ended December 31, 2006.
Two operating segments
> Smart Grid Solutions Group which develops and delivers state-of-the-art demand response,
smart metering, advanced metering initiative, advanced meter reading and other monitoring and
control hardware and software, which allow utility customers to measure, manage, shift and
reduce energy consumption in real-time.
> Alternative Energy Resources Group which offers COMV's Virtual Peaking Capacity, or VPC,
programs, through which COMP provides electric capacity to utility customers during periods of
peak energy demand by remotely operating high energy-consuming devices, such as central air
conditioners, water heaters and pool pumps.
. COMV provides this capacity by developing, owning and operating energy load management
systems through long-term, pay-for-performance contracts.
. Pay-for-performance means that COMV enters into long-term contracts with utilities and is paid
under each contract based on the amount of verifiable kilowatt hours of capacity that COMV
provides.
Smart Grid Solutions Group Products
. Demand response products consist of hardware that is installed at a utility's residential or
business customer's location on high-energy consumption equipment, such as central air
conditioners.
. Software applications send wireless messages to manage and control our hardware. Upon
receiving the messages, COMV hardware works to reduce the length of time that the equipment
operates, thereby making electric capacity available to the utility. Our advanced metering products
consist of our hardware that is installed at a utility's residential or business customer's electric
meter. These devices collect information from the meter and transmit it through a software
application where it is then stored on servers. This information is used by the utility to manage
electricity consumption, analyze usage trends and generate billing information.
Smart grid market share
. COMV estimates that its products represent over 50% of residential demand response devices
operating in North America to date.
. According to the Department of Energy, there are 8,970 megawatts of residential demand
response systems installed in North America today.
. Based on the 8,970 total megawatts installed and an average 1.35 kilowatts used per residence,
approximately 5% of the 133 million residences in the U.S. have demand response services
installed.
. COMV products shipped to date account for 6,000 megawatts, which have been installed in 3.3%
of the homes in the U.S.
Alternative Energy Resources Group offerings
. VPC programs utilize the Smart Grid Solutions Group's products to similarly manage demand
for electric capacity as described above.
. However, as opposed to the utility using its resources to run the program, COMV develops,
operates and manages this capacity for utilities on a pay-for-performance basis,
. Which means that COMV enters into long-term contracts with utilities and are paid under each
contract based on the amount of verifiable kilowatt hours of capacity that we provide.
. Based on contacts in the industry, COMV's industry experience and information gathered
through its sales and development networks, COMV believes that five residential pay-for
performance contracts have been awarded in North America, all through a competitive bidding
process.
Gross profit discussion
As a percentage of revenue, total gross margin for the year ended December 31, 2006 increased to
50% from 49% for the year ended December 31, 2005, resulting from
. An increase of higher-margin VPC contract revenue attributable to Alternative Energy Resources
Group
. An increase in higher-margin digital control unit sales from the Smart Grid Solutions Group
resulted in an increased total gross margin.
Alternative Energy Resources Group gross margin
During 2006, COMV added 23 megawatts of commercial and industrial VPC contract capacity,
which has a lower gross margin than residential VPC contract capacity.
. The gross margin of the Alternative Energy Resources Group varies due to factors that
significantly impact revenue and cost of revenue but do not necessarily reflect on the underlying
profitability of VPC contracts. These factors include:
o The responsibility to pay participant incentives.
. In two of the four VPC contracts in effect as of December 31, 2006, COMV is responsible for
paying participant incentives, which are included in the cost of revenue.
. In the other two VPC contracts in effect as of December 31, 2006, the utility customers are
responsible for paying participant incentives.
. For the former two contracts, revenue is higher than the latter two contracts because COMV has
to recover the incentive cost plus a return on the capital employed.
. Consequently, the gross margin will be lower, but the gross profit will be greater for contracts
under which COMV has the responsibility to pay incentives compared to contracts under which
utility customers are required to make the payments.
o COMV depreciates its VPC program capital equipment over the remaining contract life, which is
shorter than the economic life of such equipment.
. As a result, the annual depreciation charge per kilowatt of capacity installed will increase over
the term of a VPC contract,
. While the revenue per kilowatt of capacity for any contract year will be determined by other
factors that bear no relation to the depreciation.
o Residential VPC contract or commercial and industrial VPC contract.
. Commercial and industrial VPC programs typically have a lower gross margin percentage
because the financial incentive paid to a participating business is greater than the amount paid
under residential VPC programs.
. Conversely, the customer acquisition costs incurred under a commercial and industrial VPC
program are lower than under a residential VPC program.
Intellectual property risk
. COMV's ability to compete effectively depends in part upon the maintenance and protection of
the intellectual property related to VPC programs and the hardware, firmware and software that
COMV has acquired or developed internally.
. Patent protection is unavailable for certain aspects of the technology that is important to the
business.
. In addition, one or more of the pending patent applications may not be issued.
. To date, COMV has attempted to rely on copyright, trademark and trade secrecy laws, as well as
confidentiality agreements and licensing arrangements, to establish and protect rights to this
technology.
Competition
From traditional clean energy providers, advanced metering initiative equipment and service
providers, and supply-side independent power producers.
o Cooper Power Systems, Inc. (through its Cannon Technologies, Inc. subsidiary)-provides load
management, automatic metering and SCADA products to the utility customer base;
o Corporate Systems Engineering-provides load management products to the utility customer
base;
o EnerNOC, Inc.-provides load management services to commercial and industrial customers for
the purposes of participating in independent system operator demand response and related
programs;
o ESCO Technologies, Inc. (through its DCSI Division)-provides load management, automatic
metering and SCADA products to the utility customer base;
o GoodCents Solutions, Inc.-provides customer enrollment, marketing and installation services to
the utility customer base;
o Honeywell International, Inc. (and its subsidiary, Honeywell Utilities Solutions)-provides
customer enrollment, marketing and installation servers to the utility customer base;
o Hunt Technologies, Inc.-provides load management and automatic metering to the utility
customer base;
o Regency Technologies, Inc.-provides load management products to the utility customer base;
o SmartSynch Inc.-provides automatic metering systems to the utility customer base; and
o Trilliant Group, Inc.-provides load management and automatic metering to the utility customer
base.
> In addition, some traditional providers of advanced meter reading products, such as Itron, Inc.
and ESCO Technologies, Inc. (through its DCSI Division), have added, or have announced their
intention to add, or may add, demand response products and services to their existing business
> Also competes against traditional supply-side resources such as natural gas-fired peaking plants
as well as independent power producers.
> Electric utilities could also offer their own demand response solutions, which would decrease
COMV's base of potential customers and could decrease our revenues and profitability.
Use of $67mm in IPO proceeds
To finance the capital requirements of current and future VPC contracts, to finance research and
development, to repay indebtedness, to fund any cash consideration for future acquisitions and for
other general corporate purposes
===================

April 2 week IPO schedule
Veraz Networks	VRAZ, C+, 7
softswitches for comm providers						Post-IPO shrs: 40m
San Jose, CA	2003	2004	2005	2006		IPO Mkt
Rev ($mm)	$59	$69	$76	$100		Cap (mm)
Gross Profit %	49%	57%	57%	54%		$436
R&D %		29%	35%	33%		@$9
Profit (loss) ($mm)	($8.9)	($5.8)	($14.3)	($13.5)
Profit (loss) %	-15%	-8%	-19%	-14%
	L:ast four quarters
	March	June	Sept	Dec
Rev ($mm)	$22	$23	$26	$28
Profit (loss) ($mm)	($3.5)	($6.2)	($3.2)	($0.7)
Profit (loss) %	-16%	-27%	-12%	-2%
Note: although VRAZ's Net Loss during the quarter ended December 31, 2006 was substantially
lower than previous quarters, VRAZ expects the Net Loss for the period ending March 31, 2007
will be significantly higher.
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales*	Earnings*	BookValue	TangibleBV	in IPO
Veraz Networks (VRAZ)	$436	4.4	-32	5.4	5.4	17%
			*annualizing Dec results
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		1.5	2	1.5	2	7
Business
. Internet Protocol, or IP, softswitches, media gateways and digital compression products to
established and emerging wireline, wireless and broadband service providers.
. Service providers use VRAZ products to transport, convert and manage voice traffic over legacy
and IP networks, while enabling voice over IP, or VoIP, and other multimedia communications
services.
. Also offers services consisting of hardware and software maintenance and support, installation,
training and other professional services.
Products
. IP products which consist of ControlSwitch family of softswitch modules, I-Gate 4000 family of
media gateways and Secure Communications Software enhancement to DCME products and DTX
family of DCME products.
. DCME: Digital Circuit Multiplication Equipment, which is a legacy product in the process of
being superceded by Internet Protocol (IP) software and equipment
Customers
. Over 400 service providers that have deployed VRAZ's DCME products in over 90 countries
. And over 55 service providers that have deployed VRAZ's IP products.
. Customers include Belgacom International Carrier Services, Cable & Wireless (Panama and
Jamaica), Equant, Meditelcom Inc., Moessel (Jamaica) Limited (Digicel), Multiregional Transit
Telecom (MTT), Primus Telecommunications, Inc., Telekom SA, Vimplecom and Vodacom SA. .
. VRAZ sells products worldwide through a direct sales force, distributors, systems integrators and
resellers.
Revenues comparison: fiscal 2006 versus 2005.
> Total revenues
. Total revenues increased by $23.4 million, or 30.7%, from $76.2 million in 2005 to $99.6 million
in 2006.
. The increase in revenues resulted from a $22.8 million growth in IP product revenues and an
increase in services revenues of $3.7 million, offset by a $3.1 million decline in DCME product
revenues.
> IP product revenues
. IP product revenues increased by $22.8 million, or 93.3%, from $24.5 million in 2005 to $47.3
million in 2006.
. The increase in IP product revenues was attributable to the increase in the number of service
providers deploying our products by twenty in 2006 as well as expansion sales to existing service
providers.
. IP product revenues represented 32.1% of total revenues in 2005 and 47.5% of total revenues in
2006. We expect that IP product revenues as a percentage of total revenues will continue to
increase in future periods.
> DCME product revenues
. DCME product revenues decreased by $3.1 million, or 7.5%, from $41.7 million in 2005 to
$38.6 million in 2006.
. The decrease in DCME product revenues was the result of the expected decline in the size of the
overall DCME market and VRAZ expects the decline to continue as customers migrate from
traditional voice networks including DCME products to IP products.
. DCME product revenues represented 54.7% of total revenues in 2005 and 38.7% of total
revenues in 2006.
> Service revenues
Services revenues represented 13.2% of total revenues in 2005 and 13.8% of total revenues in 06
. Services revenues increased by $3.7 million, or 36.5%, from $10.1 million in 2005 to $13.8
million in 2006.
. The increase in services revenues resulted from an increase in IP services revenues for both
professional services and support and maintenance from $4.1 million in 2005 to $7.9 million in 06
. DCME services revenues remained essentially unchanged at approximately $6.0 million in 2005
and 2006. Over time VRAZ expects DCME services revenues to decrease as DCME product
revenues decline.
. The increase in our IP services revenues correlates to the increase in IP product revenues.
. VRAZ expects the trends in both DCME services revenues and IP service revenues to continue.
Competition
The market for carrier packet voice infrastructure solutions is intensely competitive, subject to
rapidly changing technology and is significantly affected by new product introductions and the
market activities of other industry participants.
. Market has historically been dominated by established telephony equipment providers, such as
Alcatel, Ericsson, Lucent Technologies, Nortel Networks and Siemens Industries, all of which are
direct competitors.
. VRAZ faces competition from other telecommunications and networking companies, including
Cisco Systems, Sonus Networks, Tekelec and Huawei
. VRAZ expects competition to persist and intensify in the future.
Selling shareholder
. ECI Telecom Ltd. (ECIL), $980mm market cap, based in Israel
. ECIL provides network, routing, and access solutions for optical and digital telecommunications
networks worldwide
Use of $66mm in IPO proceeds from sale of 6.75mm shares
(ECI Telecom intends to sell 2.25mm shares)
. For capital expenditures for the purchase of equipment and for leasehold improvements in
connection with an expansion and working capital for general corporate purposes, including
expansion of marketing and sales departments.
. Also may use a portion of the proceeds for the future acquisition of, or investment in, businesses,
products or technologies that complement the business
===================