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

February 26 week IPO schedule
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
OncoGenex (OGXI)	$172	n/a	-15	2.0	3.1	29%
helps treatmemts for cancer: C, 6						Post-IPO shrs: 15.6mm

Rosetta Genomic ROSG	$90	n/a	-12	1.7	3.2	33%
microRNA diagnostic/therapeutic prdcts: C, 6						Post-IPO shrs: 11mm
===================
February 26 week analysis
OncoGenex	OGXI, C, 6
helps treatmemts for cancer						Post-IPO shrs: 15.6mm
Vancouver, British Columbia	2003	2004	2005	Sept 06*		IPO Mkt
Profit (loss) ($mm)	($1.9)	($4.0)	($4.9)	($8.6)		Cap (mm)
				*nine months ended Sept 30		$172
						@$11
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
OncoGenex (OGXI)	$172	n/a	-15	2.0	3.1	29%
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 committed to the development and commercialization of new
cancer therapies that address treatment resistance in cancer patients.
. Product candidates are being developed to block the production of specific proteins associated
with the development of treatment resistance which OGXI believes will increase survival time and
improve the quality of life for cancer patients.
Product candidates
Three product candidates in development: OGX-011, OGX-427 and OGX-225.
. Lead drug candidate, OGX-011, is currently in five phase 2 clinical trials investigating the
potential to improve treatment outcomes for patients with prostate cancer, non-small cell lung
cancer and breast cancer.
. OGX-427, the second drug candidate, is currently being developed to improve treatment
outcomes for patients with various solid and hematological cancers. OGX-427 is expected to enter
clinical investigation in mid 2007.
. Third drug candidate, OGX-225, is in pre-clinical development to assess its ability to inhibit or
delay progression of hormone dependent and other tumors.
Competition
Major competitors are large pharmaceutical, specialty pharmaceutical and biotechnology
companies, in Canada, the United States and abroad.
. Many oncology drugs in clinical trials are being developed for the four primary cancer indications:
lung, breast, colorectal, and prostate cancer.
. Certain of these drugs are, like OGXI’s, designed to interfere with treatment resistance.
Use of $44mm in IPO proceeds
. Fund the further development and expansion of product candidates and
. Other working capital and general corporate purposes
===================
Rosetta Genomics	ROSG, C, 6
microRNA diagnostic/therapeutic prdcts						Post-IPO shrs: 11mm
Rehovot, Israel	2003	2004	2005	Sept 06*		IPO Mkt
Profit (loss) ($mm)	($2.3)	($3.0)	($5.8)	($5.5)		Cap (mm)
				*nine months ended Sept 30		$90
						@$8
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Rosetta Genomic ROSG	$90	n/a	-12	1.7	3.2	33%
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
. Seeking to develop products based on a recently discovered group of genes known as
microRNAs.
. MicroRNAs are naturally expressed, or produced, using instructions encoded in DNA and are
believed to play an important role in regulating protein production.
. Because proteins control most biological processes, ROSG believes that microRNAs have the
potential to form the basis of a novel class of diagnostic tests and therapies for many serious
illnesses, including cancer and infectious diseases.
Focus & process
. RSOG has decided to focus initial efforts on cancer, as research has indicated that microRNAs
play a role in various types of tumors.
. Has developed a discovery process that utilizes proprietary computer-based algorithms, which
are procedures for solving complex problems, to scan the entire genome for microRNA
candidates.
. microRNA candidates are identified, RSOG conducts one or more biological experiments using
tissue or body fluid samples to prove their existence, or expression, a process known as biological
validation.
Patent strategy
. RSOG believes that it is the first commercial enterprise to focus on the emerging microRNA
field, and as a result, RSOG believes it has developed an early and strong intellectual property
position related to the development and commercialization of research, diagnostic and therapeutic
products and other applications based on microRNAs.
. RSOG's patent strategy is to seek broad coverage on all of identified microRNA sequences and
then file patent applications claiming a novel chemical structure, or composition-of-matter, on
individual microRNAs of commercial interest
. To date, has filed patent applications with claims potentially covering approximately 350
biologically validated human microRNAs and 35 biologically validated viral microRNAs, which
constitute more than half of all biologically validated human and viral microRNAs of which
RSOG is aware.
. In addition, patent applications cover thousands of genomic sequences that we have identified
using our discovery process and believe are potential microRNA candidates.
Competition
. Products, if approved, will compete against existing non-microRNA-based diagnostic tests and
therapies.
. In addition, ROSG believes a significant number of non-microRNA-based diagnostic products
and drug candidates are currently under development and may become available for the diseases
ROSG is targeting or may target.
. In addition to the competition ROSG may face from non-microRNA-based competing products,
ROSG may also face competition from other companies working to develop novel products using
technology that competes more directly with ROSG's microRNAs.
. RSOG is aware of several other companies, including some collaborators, that are working to
develop microRNA diagnostic and therapeutic products, including Alnylam Pharamceuticals,
Asuragen, Celera, Invitrogen, Isis Pharmaceuticals, Merck, Santaris and others.
Use of $26mm in IPO proceeds
. $17.0 million to fund product research and development activities
. $2.5 million to fund licensing and protection of intellectual property rights, including payment
of fees associated with the in-licensing of intellectual property and fees associated with the
continued prosecution of existing patent applications and the filing and prosecution of new patent
applications
. $6.6 million to fund business development, including personnel costs and legal and other
administrative fees related to seeking and entering into strategic business collaborations, and for
general corporate purposes, including working capital
purposes, including working capital.
===================

Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop
Pre-IPO analysis, grading & scoring -- updated Feb 12
. 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
===================
February 12 week IPO schedule
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Converted Orgnc COINu	$20	n/a	n/a	2.8	2.5	56%
development stage company: C, 4						Post-IPO shrs: 80mm

Opnext (OPXT)	$868	5.6	68	3.5	3.6	27%
optical modules/components for comm: B-, 8						Post-IPO shrs: 62mm

Quadra Realty (QRR)	$412	n/a	n/a	1.1	1.1	65%
REIT: C+, 6						Post-IPO shrs: 26mm

Salary.com (SLRY)	$129	5.7	-24	5.9	5.1	35%
compensation software & data: C+, 7						Post-IPO shrs: 14.3
===================
February 12 week analysis
Converted Organics	COIN-u, C, 4
development stage company						Post-IPO shrs: 80mm
Boston, MA		development stage				IPO Mkt
Rev ($mm)		startup				Cap
Profit (loss) ($mm)						$20
Profit (loss) %						@$5.5
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Converted Orgnc COINu	$20	n/a	n/a	2.8	2.5	56%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		1	1	1	1	4
Units
Each unit consists of one share of common stock, one redeemable Class A warrant, and one non-
redeemable Class B warrant
Business
. A development stage company seeking to use organic food waste as raw material to manufacture
all-natural soil amendment products combining both nutritional and disease suppression
characteristics.
. Plans to sell and distribute products in the agribusiness, turf management, and retail markets.
. Proposed process, which has been demonstrated in a pilot manufacturing facility, uses heat and
bacteria to transform food waste into a natural fertilizer.
New Jersey Economic Dev Authority
. A substantial portion of the net proceeds of this offering, together with the net proceeds of an
$17.5 million bond issue of the New Jersey Economic Development Authority that is to close
simultaneously with the closing of this offering,
. Will be used to develop and construct an organic waste conversion facility in Woodbridge, New
Jersey.
. COIN expects this facility to be operational approximately 12 to 15 months from the date of the
closing of this offering and the bond issue.
Bridge Securities
In June 2006, COIN completed a $1.515 million bridge loan from lenders to help working capital
needs.
Use of IPO proceeds
Purchase capital equipment and pay engineering and design fees for the construction of the first
processing line; to repay bridge and shareholder loans; to pay expenses and deferred
compensation; to pay fees to the technology licensor; and for working capital purposes.
===================
Opnext	OPXT, B-, 8
optical modules/components for comm			March 31 fiscal			Post-IPO shrs: 62mm
Eatontown, NJ	2004	2005	2006	Dec 05*	Dec 06*	IPO Mkt
Rev ($mm)	$80	$138	$152	$106	$157	Cap (mm)
Gross Profit %	8%	22%	21%	18%	34%	$868
Profit (loss) ($mm)	($80.5)	($32.7)	($30.5)	($27.7)	$0.9	@$14
Profit (loss) %	-100.6%	-23.7%	-20.1%	-26.1%	0.6%
				*nine months ended Dec 31
		3 months ended ==>		Dec 05	Dec 06
Rev ($mm)				$39	$62
Gross Profit %				28%	35%
Profit (loss) ($mm)				($4.0)	$3.2
Profit (loss) %				-10.3%	5.2%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Opnext (OPXT)	$868	5.6	68	3.5	3.6	27%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	2	8
Business
Optical modules and components which enable high-speed telecommunications and data
communications networks globally.
. Designs, manufactures and markets optical modules and components that transmit and receive
data and are primarily used in telecommunications and data communications networks.
. OPXT believes it has one of the most comprehensive transceiver product portfolios for both of
these markets, particularly at the 10Gbps data rate
. For the first time, achieved positive net income of $1.2 million during the quarter ended
September 30, 2006 and net income was $3.2 million for the quarter ended December 31, 2006.
Product portfolio
. Consists of 10Gbps and 40Gbps transceiver modules, including tunable transceivers, a broad line
of 2.5Gbps and lower speed SFP transceivers
. Demand for 10Gbps and 40Gbps products which have grown from 38.9% of revenue in the year
ended March 31, 2004 to 78.6% of revenue in the nine month period ended December 31, 2006.
. Also has new or planned products for emerging standards such as SFP+ and XMD.
Sales Comparisons
> Three Month Periods Ended December 31, 2006 and 2005
. Overall sales increased $23.1 million or 59.9% to $61.7 million in the three month period ended
December 31, 2006 from $38.6 million in the three month period ended December 31, 2005
including a decrease of $0.1 million due to fluctuations in foreign exchange rates.
. During the three month period ended December 31, 2006, 10Gbps and above products increased
$23.2 million or 82.9% to $51.2 million and less than 10Gbps products increased $0.9 million or
16.2% to $6.1 million while sales of industrial and commercial products decreased by $1.0 million
or 19.3% to $4.3 million.
. The increase in 10Gbps and above products primarily resulted from increased demand for 300
pin tunable, XENPAK, XFP, X2 and 40Gbps products while the increase in less than 10Gbps
products primarily resulted from an increase in demand for SFP products offset by lower demand
for our 2.5Gbps custom modules.
. The decrease in sales of industrial and commercial products primarily resulted from volume
decreases in DVD products that resulted from a last time buy arrangement through September
2006 with a subsidiary of Hitachi, the sole customer for DVD products offset by increased
demand for our other industrial and commercial products.
. Salesof DVD products were $0.0 million and $1.9 million in the three month periods ended
December 31, 2006 and 2005, respectively.
> Compared to prior quarter
. Sales also increased $6.4 million or 11.6% from $55.3 million in the previous quarter ended
September 30, 2006.
. This increase was primarily driven by a $8.3 million or 19.5% increase in 10Gbps and above
products offset by a $2.3 million decrease in sales of our DVD products.
> Quarter over quarter increases
. Since the quarter ended June 30, 2005 OPXT has experienced quarter over quarter increases in
total sales and sales of 10Gbps and above products in five of the six comparative periods, the only
decrease occurring in the quarter over quarter period ended June 30, 2006.
. During this period total sales decreased by $5.8 million or 12.5% primarily due to a $1.8 million
or 5.7% decrease in 10Gbps and above products and a $3.4 million decrease in sales of DVD
products.
. The decrease in 10Gbps and above products primarily resulted from vendor supply and
production delays which limited OPXT's ability to ship certain 300 pin modules, including
tunable transceivers, and certain Xenpak modules.
> Customer concentration
. For the three month period ended December 31, 2006, Cisco and Alcatel-Lucent accounted for
41.1% and 20.4% of revenues, respectively.
. For the three month period ended December 31, 2005, Cisco and Alcatel, accounted for 26.0%
and 12.7% of revenue respectively.
. No other customers accounted for more than 10% of total sales in either period.
Industry Background
. Network service providers continue to add high speed network access such as Wi-Fi, WiMAX,
3G, DSL, cable and FTTx, and are converging traditionally separate networks for delivering voice,
video and data into IP-based integrated networks.
. Concurrent with these trends, a growing demand for high bandwidth applications by both
consumers and enterprises is driving increased network utilization across the core and at the edge
of wireline, wireless and cable networks (collectively refered to as telecommunications networks)
Solution providers outsourcing modules & component to suppliers like OPXT
According to OPXT both telecommunications network systems vendors such as Alcatel-Lucent
and data communications network systems vendors such as Cisco are producing optical systems
increasingly based on 10Gbps and 40Gbps speeds.
. Faced with technological and cost challenges, they are focusing on their core competencies of
software and systems integration
. And are relying upon established module and component suppliers, like Opnext, for the design,
development and supply of critical hardware components such as products that perform the optical
transmit and receive functions.
Sell cycle
The evaluation and qualification cycle prior to the initial sale of OPXT's products generally spans
a year or more.
Sales
> Communications
. Sales to telecommunication and data communication customers accounted for 92.9%, 90.5%,
81.9%, 72.4% and 66.7% of sales during the three and nine month periods ended December 31,
2006 and each of the years ended March 31, 2006, 2005 and 2004, respectively
. For the year ended March 31, 2006, our top three customers, Cisco Systems, Hitachi together
with its affiliates, and Alcatel accounted for 27.9%, 15.0% and 12.7% of sales, respectively and
during the nine months ended December 31, 2006, Cisco and Alcatel-Lucent accounted for 37.3%
and 19.7% of sales, respectively
> Components
Also supplies components to several major transceiver module companies and sell to select
industrial and commercial customers.
. Also during the three and nine month periods ended December 31, 2006 and each of the years
ended March 31, 2006, 2005 and 2004, sales of products with 10Gbps or higher data rates, which
OPXT refers to as its 10Gbps & above products, represented 82.9%, 78.6%, 69.4%, 58.7% and
38.9% of total sales, respectively.
History
. Incorporated as a wholly-owned subsidiary of Hitachi, Ltd., or Hitachi, on September 18, 2000
. Hitachi contributed the fiber optic components business of its telecommunications system
division to Opnext Japan, Inc.
. On July 31, 2001, Hitachi contributed 100% of the shares of Opnext Japan, Inc. to OPXT in
exchange for 70% of OPXT's then outstanding Class A common shares
. Clarity Partners, L.P., Clarity Opnext Holdings I, LLC, and Clarity Opnext Holdings II, LLC
(collectively referred to as Clarity) together contributed $321.3 million in exchange for Class A
common stock representing a 30% interest in OPXT company.
. On October 1, 2002, acquired 100% of the shares of Opto Device, Ltd. from Hitachi for a
purchase price of $40.0 million. This acquisition of Hitachi's opto device business expanded the
product line into select industrial and commercial markets
. On June 4, 2003 acquired 100% of the outstanding shares of Pine Photonics Communication Inc.,
in exchange for 1,672,515 shares of Class B common stock. This acquisition expanded the product
line of SFP transceivers with data rates less than 10Gbps that are sold to telecommunication and
data communication customers. OPXT refers to these products, together with its legacy 2.5 Gbps
custom modules, as OPXT's less than 10Gbps products.
Intellectual property licenses to Hitachi
. OPXT licenses its intellectual property to Hitachi and its wholly owned subsidiaries without
restriction
. Hitachi is free to license certain intellectual property used in our business to any third party,
including competitors, which could harm OPXT's business and operating results.
Competition
. While no company competes against OPXT (according to OPXT) in all of its product areas,
competitors range from the large, international companies offering a wide range of products to
smaller companies specializing in narrow markets.
. OPXT believes that a number of companies have developed or are developing transmit and
receive optical modules and components and lasers and infrared LEDs that compete directly with
OPXT product offerings
> telecommunications and data communications markets
. Competes primarily with suppliers of transmit and receive optical modules and components, at
both the level of basic building blocks, such as lasers and photodetectors, as well as at the
integrated module level such as transceivers for telecommunications and data communications
applications.
. Competitors include Avago, Avanex, Bookham, Finisar, Fujitsu, Intel, JDS Uniphase,
Mitsubishi, Optium, and Sumitomo (which markets products in North America as Excelight)
> Industrial and commercial product lines
Principally competes with Sanyo, Sony, Arima and QSI
Use of $125mm from sale of 10mm shares
(shareholders intend to sell 6.9mm shares, including 6.7mm from Hitachi, Ltd., which will still
own 47% post-IPO)
. $25 million to fund future capital expenditures
. $25 million for the expansion of research and development of new products and the enhancement
of existing products including sales and marketing efforts associated with these products
. $50.4mm to repay debt
. Remainder for working capital and general corporate purposes
===================
Quadra Realty Trust	QRR, C+, 6
REIT						Post-IPO shrs: 26mm
New York, NY		newly formed, see below				IPO Mkt
Rev ($mm)						Cap (mm)
Gross Profit %						$412
Profit (loss) ($mm)						@$16
Profit (loss) %
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Quadra Realty (QRR)	$412	n/a	n/a	1.1	1.1	65%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	1	1	6
Business
. Newly-organized, commercial real estate finance company formed principally to invest in
commercial mortgage investments and related products, including construction loans, mezzanine
loans, B Notes, bridge loans, fixed and floating rate whole loans, loan participations, preferred
equity investments and equity in commercial real estate.
. Externally managed and advised by Hypo Real Estate Capital Corporation (the Manager), a
commercial real estate finance company specializing in debt financing for commercial real estate
throughout the United States
Contributions
. Concurrent with the closing of the IPO, the Manager will contribute commercial mortgage loan
assets to QRR
. The initial assets will consist of construction loans, bridge loans and mezzanine loans, and will
be contributed to QRR at fair market value, as determined by the Manager.
. As of December 31, 2006, the fair market value of the assets to be contributed to was $257.5
million, which includes $5.2 million of origination fees.
. QRR will pay the Manager $124.2 million in cash from the net proceeds of this offering (based
on the mid-point of the price range set forth on the cover page of this prospectus and the value of
the initial assets as of December 31, 2006)
. And will issue the Manager 8,330,000 shares of QRR common stock.
Use of $246mm in IPO proceeds
. $124.2 to fund a portion of the purchase price for the contribution of the initial assets from the
Manager
. Remainder of the proceeds used to fund unfunded commitments under the construction loans
contributed to QRR as a part
===================
Salary.com	SLRY, C+, 7
compensation software & data	March 31 fiscal					Post-IPO shrs: 14.3
Waltham, MA	2004	2005	2006	Dec 05*	Dec 06*	IPO Mkt
Rev ($mm)	$6	$10	$15	$11	$17	Cap (mm)
Gross Profit %	86%	81%	80%	80%	78%	$129
Profit (loss) ($mm)	($1.2)	($2.3)	($3.3)	($1.9)	($4.0)	@$9
Profit (loss) %	-18.8%	-23.0%	-21.6%	-17.6%	-24.1%
				*nine months ended Dec 31
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Salary.com (SLRY)	$129	5.7	-24	5.9	5.1	35%
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
. On-demand compensation management solutions.
. Enables employers of all sizes to replace or supplement inefficient and expensive traditional
approaches to compensation management, including paper-based surveys, consultants, internally
developed software applications and spreadsheets.
Subscription-based solutions
. Solutions principally on an annual or multi-year subscription basis.
. From the introduction of solutions in 2000 through September 30, 2006, the enterprise
subscriber base has grown to approximately 1,500 companies who spend from $2,000 to more
than $100,000 annually, including companies such as Wal-Mart, Home Depot, Procter & Gamble,
Merrill Lynch, UPS and Cisco Systems.
Solutions
. SLRY's data sets contain base, bonus and incentive pay data for positions held by more than
73% of U.S. employees and similar data for the top executives in over 10,000 U.S. public
companies.
. Flagship offering is CompAnalyst, a suite of compensation management applications that
integrates SLRY data, third party survey data and a customer's own pay data in a complete analytics
offering.
. Also has introduced TalentManager, an employee life-cycle performance management
application that links employee pay to performance.
Website traffic
. Also sells to both individual consumers and smaller businesses through our Salary.com website
. According to comScore Networks, the amount of website traffic received by Salary.com over the
twelve months ended September 30, 2006 places SLRY's website in the top 10 for Career Services
and Development websites.
. Salary.com has also been ranked in the top 10 for Financial Information and Advice websites
during the same period.
. Additionally, SLRY's Internet media traffic has grown to an average of more than 2 million
unique monthly visitors over the nine months ended September 30, 2006 according to comScore
Networks
Financial summary
. Achieved 22 consecutive quarters of revenue growth since April 2001.
. During the years ended March 31, 2004, 2005 and 2006, and the six months ended September 30,
2006, achieved positive operating cash flows of $0.3 million, $0.9 million, $1.8 million, and $0.6
million, respectively.
. During these periods, consistently incurred operating losses, including $0.8 million for 2004,
$1.9 million for 2005, $3.0 million for 2006 and $1.9 million for the six months ended September
30, 2006.
. As of September 30, 2006, we had an accumulated deficit of $23.1 million.
Six Months Ended September 30, 2006 and 2005
Revenues
. Revenues for the six months ended September 30, 2006 were $10.6 million, an increase of $3.9
million, or 57%, over revenues of $6.7 for the six months ended September 30, 2005.
. Subscription revenues were $9.3 million for the six months ended September 30, 2006, an
increase of $3.5 million, or 61%, over subscription revenues of $5.8 million for the six months
ended September 30, 2005.
. The growth in subscription revenues was due principally to an increase of $1.4 million in
renewal revenues to existing subscription customers, an increase of $1.2 million in revenues to
new subscription customers due to an increase of $0.5 million in revenues from additional
products sold to existing customers for the six months ended September 30, 2006 as compared to
the six months ended September 30, 2005.
. The increase in total revenues was due to hiring of additional sales personnel focused on
retaining existing customers, adding new customers and upselling to existing customers. While we
introduced
. Total deferred revenue as of September 30, 2006 was $12.3 million, representing an increase of
$4.6 million, or 60%, over total deferred revenue of $7.7 million as of September 30, 2005.
Sources of Revenues
. Derives revenues primarily from subscription fees and, to a lesser extent, through advertising on
the website.
. For the years ended March 31, 2004, 2005 and 2006, subscription revenues accounted for 80%,
86% and 85%, respectively, of total revenues and for the years ended March 31, 2004, 2005 and
2006, advertising revenues accounted for 20%, 14% and 15%, respectively, of total revenues.
Competition
> Generic desktop software and in-house or custom- developed solutions.
Microsoft Excel and Microsoft Access, as well as other commercially available software
solutions not specifically designed for compensation or performance management.
> Established software vendors
> Established compensation and HR consulting firms
> Other websites and advertising venues
Use of $31mm in IPO proceeds from sale of 4.2mm shares
(shareholders intend to sell .8mm shares)
. Pay $4.4mm in debt
. Remainder for working capital needs and for general corporate purposes
===================


Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop
Pre-IPO analysis, grading & scoring -- updated Feb 5
. 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
===================
February 5 week IPO schedule
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
3SBio Inc. (SSRX)	$278	17.4	70	3.1	3.1	36%
Chinese biotech: C+, 7						Post-IPO shrs: 21.4mm equivalent ADSs

Accuray (ARAY)	$738	5.6	92	14.9	16.9	27%
robotic radiosurgery: B-, 8	June30 fiscal					Post-IPO shrs: 49mm

Cellcom Israel (CEL)	$1,658	1.3	14	9.0	25.4	19%
cellular phone service in Israel: B-, 6						Post-IPO shrs: 97.5mm

Fortress Inv (FIG)	$7,026	n/a	n/a	146.4	145.8	9%
global asset manager: B-, 7						Post-IPO shrs: 401mm

JA Solar (JASO)	$592	10.1	63	2.8	2.8	34%
China-based solar cells mfg: C, 7						Post-IPO shrs: 44mm equivalent ADSs

Mellanox Tech (MLNX)	$408	9.3	90	4.4	4.4	19%
fabless semiconductors: C+, 7						Post-IPO shrs: 33mm

Natnl CineMedia (NCMI)	$1,786	6.0	81	-3.1	-2.2	40%
digital in-theater networks: C+, 8						Post-IPO shrs: 94mm

Optimer Pharma (OPTR)	$260	216.7	-25	3.1	3.1	27%
biotec: C, 6						Post-IPO shrs: 20mm

Switch & Data (SDXC)	$507	4.6	-38	4.9	14.0	35%
telecom interconnect: C, 6						Post-IPO shrs: 34mm

Synta Pharma (SNTA)	$271	n/a	-5	3.4	-6.8	48%
cancer biotech: C, 6						Post-IPO shrs: 19mm

Targa Resrc L.P, NCLS	$566	1.5	1061	0.8	0.8	59%
midstream services for natural gas: C+, 7						Post-IPO shrs: 28mm partnership units

U.S. Auto Parts (PRTS)	$328	2.3	123	3.3	6.4	40%
online reseller of auto parts: C+, 7						Post-IPO shrs: 30mm

VeriChip Corp (CHIP)	$78	2.9	-17	1.6	5.5	41%
RFID for healthcare: C, 6						Post-IPO shrs: 10.4mm
===================
SEARCH BY COMPANY		In your browser use 'Edit/Find' to search for companies
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February 5 week grading, scoring & analysis
3SBio Inc.	SSRX, C+, 7
Chinese biotech						Post-IPO shrs: 21.4mm equivalent ADSs
Shenyang, China				2005	Sept 06*	IPO Mkt
Rev ($mm)			proforma	$13	$12	Cap (mm)
Gross Profit %				84%	91%	$278
Profit (loss) ($mm)				$2.0	$3.0	@$13
Profit (loss) %				15.5%	25.6%
				*nine months ended Sept 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
3SBio Inc. (SSRX)	$278	17.4	70	3.1	3.1	36%
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
. Biotechnology company focused on researching, developing, manufacturing and marketing
biopharmaceutical products primarily in China.
. Recombinant, or genetically engineered, protein-based products and product candidates are
designed to address large markets with significant unmet medical needs in nephrology, oncology,
supportive cancer care, inflammation and infectious diseases.
. SSRX believes it is one of the leading biopharmaceutical companies in China in terms of growth
and profitability
Products
Principal products are EPIAO and TPIAO. Legacy products are Intefen and Inleusin .
> EPIAO
EPIAO, the flagship product, is an injectable recombinant human erythropoietin, or EPO, that is
used to stimulate the production of red blood cells in patients with anemia and to reduce the need
for blood transfusions.
. EPIAO is a protein-based therapeutic comparable in structure and function to Amgen Inc.'s
Epogen and Kirin Brewery Company Limited's ESPO.
. EPIAO is approved by the PRC State Food and Drug Administration, or the SFDA, for three
distinct indications: anemia associated with chronic renal failure; red blood cell mobilization,
which is the process in which red blood cells are stimulated to proliferate, before, during, and after
surgery; and anemia associated with chemotherapy in cancer patients with non-myeloid
malignancies, which are cancers that do not originate in the bone marrow or involve myeloid cells,
or non-lymphocyte white blood cells found in the bone marrow.
,. SSRX believes it is the only pharmaceutical company in China that has obtained approval from
the SFDA for three indications of EPO drugs.
Future EPIAO plans
. Plans to initiate in 2008 clinical trials for NuPIAO, the second-generation EPIAO product
candidate.
. NuPIAO is designed to have a longer half-life relative to first-generation EPIAO.
. In addition, are in late-stage clinical trials for a concentrated high dose (36,000 IU/vial)
formulation of EPIAO, which is designed to allow for less frequent administration, benefiting both
patients and doctors.
. Expects to apply for marketing approval of high-dose EPIAO in 2007.
. If approved, EPIAO believes it will be the highest EPO dosage formulation available in the
Chinese market.
Small market size for EPO drugs
According to IMS Health, an independent research firm, revenues from all EPO drug sales in
China were estimated at over RMB300 million (US$37.5 million) in 2005, representing a 20%
compound annual growth rate from 2003.
. EPIAO, as tracked by IMS Health, has been ranked as the number one EPO drug since 2002 in
terms of both units sold and revenues among the foreign and domestic biopharmaceutical
companies marketing EPO drugs in China.
. SSRX has sold over 6.9 million vials of EPIAO since 1999.
> TPIAO
. Launched TPIAO, the newest internally developed protein-based therapeutic product, in January
2006. This product is a recombinant human thrombopoietin, or TPO, indicated for the treatment of
chemotherapy-induced thrombocytopenia, a deficiency of platelets.
. TPIAO is the first TPO-based therapeutic approved by the SFDA for thrombocytopenia in China.
. SSRX believes TPIAO is the only TPO-based therapeutic available in the Chinese market to
date.
. In addition, the SFDA has granted SSRX a five year monitoring period for TPIAO through 2010,
during which other pharmaceutical companies are prohibited from manufacturing or importing a
similar drug, except those whose applications for clinical trials were approved by the relevant
Chinese authority prior to May 2005 at the commencement of TPIAO's monitoring period.
. SSRX is are aware of at least one other Chinese pharmaceutical manufacturer whose application
for clinical trials may have been approved by May 2005 and who may be in clinical trials for a
TPO-based therapeutic.
Financial results
. For the two years ended December 31, 2004 and 2005, EPIAO generated approximately 84.1%
and 83.1% of overall net revenues, respectively.
. Revenues from EPIAO accounted for 84.9% of our overall net revenues in the nine months ended
September 30, 2005, compared to 78.7% for the same period in 2006.
. The decrease resulted from the launch in early 2006 of TPIAO, which has rapidly become the
second largest revenue contributor.
Competition and barriers to entry
As a result of China's accession to the WTO, the PRC government has agreed to gradually open
up various service types of the pharmaceutical industry in China to foreign investors
. In China, SSRX EPIAO competes primarily with Kirin's ESPO, Roche's Recormon and "Yi Pei"
by Di'ao Group Chengdu Diao Jiuhong Pharmaceutical Factory.
. Competitors for interleukin-2 in China include Beijing SL Pharmaceutical Co., Ltd. and Beijing
FSSRX Rings Biopharmaceutical Co., Ltd. Competitors for Tietai Iron Sucrose Supplement in
China include Beijing Novartis Pharmaceutical Co., Ltd. and Nanjing Hencer Pharmaceutical Co.,
Ltd. and competitors for Baolijin in China include Kirin, Hangzhou Jiuyuan Gene Engineering
Co., Ltd. and Qilu Pharmaceutical Co., Ltd.
Use of $82mm in IPO proceeds to the company
. US$20 million, which SSRX currently anticipate to be sufficient for the construction of a new
GMP-certified manufacturing plant with planned capacity to meet increasing market demand for
SSRX products and for certification of the new plant by the European Agency for the Evaluation
of Medical Products, or EMEA;
. US$5 million, which the company currently anticipates to be sufficient for improvements to
SSRX existing facilities, primarily relating to process development and optimization, to achieve
EMEA certification and improved production yield, which involves the introduction of new
production procedures and modifications to SSRX existing quality control procedures, such as
adding virus clearance and testing procedures;
. US$10 million for conducting clinical trials for SSRX product
. US$10 million for the expansion and enhancement of SSRX sales and marketing network,
including the addition of personnel to SSRX oncology-focused marketing team, further
penetration in SSRX existing geographical markets and expansion into new target areas in China.
===================
Accuray (ARAY)	ARAY, B-, 8
robotic radiosurgery	June30 fiscal					Post-IPO shrs: 49mm
Sunnyvale, CA	2004	2005	2006	Sept 05*	Sept 06*	IPO Mkt
Rev ($mm)	$20	$22	$53	$4	$33	Cap (mm)
Gross Profit %	55%	51%	48%	47%	59%	$738
Profit (loss) ($mm)	($12.0)	($25.0)	($34.0)	($10.0)	$2.0	@$15
Profit (loss) %	-60.0%	-113.6%	-64.2%	-263.2%	6.1%
				*three months ended Sept 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Accuray (ARAY)	$738	5.6	92	14.9	16.9	27%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	2	8
Business
. Ddeveloped the first and only commercially available intelligent robotic radiosurgery system, the
CyberKnife system, designed to treat solid tumors anywhere in the body as an alternative to
traditional surgery.
. For over 30 years, traditional radiosurgery systems, or systems that deliver precise, high dose
radiation directly to a tumor, have been used primarily to destroy brain tumors.
The CyberKnife system
. ARAY's image-guidance technology continuously acquires images to track a tumor's location
and transmits any position corrections to the robotic arm prior to delivery of each dose of
radiation.
. ARAY's compact linear accelerator, or linac, is a compact radiation treatment device that uses
microwaves to accelerate electrons to create high-energy X-ray beams to destroy the tumor. This
combination, which refered to as intelligent robotics, extends the benefits of radiosurgery to the
treatment of tumors anywhere in the body.
. The CyberKnife system autonomously tracks, detects and corrects for tumor and patient
movement in real-time during the procedure, enabling delivery of precise, high dose radiation
typically with sub-millimeter accuracy.
. Traditional radiosurgery systems have limited mobility and generally require the use of rigid
frames attached to a patient's skull to provide a coordinate system to effectively target a tumor,
restricting their ability to effectively treat tumors outside of the brain. The CyberKnife system
does not have these limitations and therefore has increased flexibility to treat tumors throughout
the body from many different directions, while minimizing the delivery of radiation to healthy
tissue and vital organs.
. The CyberKnife procedure requires no anesthesia, can be performed on an outpatient basis and
allows for the treatment of patients that otherwise would not have been treated with radiation or
who may not have been good candidates for surgery.
. In addition, the CyberKnife procedure avoids many of the potential risks and complications that
are associated with other treatment options and is more cost effective than traditional surgery.
Sales cycle
. ARAY's business and sales and installation cycle does not immediately create recognizable
revenue.
. As such, ARAY must invest in sales and marketing activities 12 to 18 months prior to realizing
the revenue from those activities.
FDA
. The CyberKnife system received U.S. Food and Drug Administration, or FDA, 510(k) clearance
in July 1999 to provide treatment planning and image-guided robotic radiosurgery for tumors in
the head and neck.
. In August 2001, the CyberKnife system received 510(k) clearance to treat tumors anywhere in
the body where radiation treatment is indicated. The CyberKnife system has also received a CE
mark for sale in Europe and has been approved for various indications in Japan, Korea, Taiwan,
China and other countries.
. Customers have reported that over 20,000 patients worldwide have been treated with
the CyberKnife system since its commercial introduction.
. Customers have increasingly used the CyberKnife system for indications outside of the brain,
including for tumors on or near the spine and in the lung, liver, prostate and pancreas.
. Based on customer data, more than 50% of patients treated with the CyberKnife system in the
United States during the quarter ended September 30, 2006 were treated for tumors outside of the
brain.
Material Weaknesses in Internal Controls
In connection with the audit of consolidated financial statements for the years ended June 30,
2004, 2005 and 2006, ARAY's independent registered public accounting firm identified material
weaknesses and significant deficiencies in our internal controls over financial reporting
Intellectual property
. As of December 31, 2006, held 11 U.S. patents, 3 allowed U.S. patent applications, 60 pending
U.S. patent applications, and are pursuing additional U.S. patent applications on additional key
inventions to enhance our intellectual property rights.
. The first of the patents will expire in 2010 and currently the last of the patents will expire in 2004
. As of December 31, 2006, we also held 21 foreign patents, 18 pending published Patent
Cooperation Treaty applications and 26 foreign patent applications which correspond to issued
U.S. patents and pending U.S. patent applications.
Competition
. Traditional surgery, minimally invasive procedures, radiation therapy chemotherapy and other
drugs are other means to treat cancer.
. Also, competes directly with frame-based radiosurgery systems primarily from Elekta AB (publ),
or Elekta, BrainLAB AG, and the Integra Radionics business of Integra Life Sciences Holding
Corporation.
. The market for standard linacs is dominated by three companies: Elekta, Siemens AG, or
Siemens, and Varian Medical Systems, Inc., or Varian.
. In addition, a new entrant, TomoTherapy Incorporated, or TomoTherapy, recently introduced a
radiation therapy product.
. The CyberKnife system does not perform radiotherapy, which uses low doses of radiation over a
long period of time with fractionated treatments to kill cancer cells, and generally does not
compete directly with standard medical linacs that perform traditional radiotherapy, although some
manufacturers of standard accelerator systems, including Varian and Elekta, have products that
can be used in combination with body and/or head frame systems and image-guidance systems to
perform radiosurgery.
Use of $100mm from sale of 7.3mm shares
(shareholders intend to sell 6mm shares)
o $40.0 million for sales and marketing activities to support the ongoing commercialization of the
CyberKnife system, including, but not limited to, expansion of our sales force, additional
participation in trade shows and symposia, and expanding our international sales and service
presence;
o $30.0 million for research and development activities, including support of hardware and
software product development and clinical study initiatives; and
o increased working capital and general corporate purposes.
===================
Cellcom Israel	CEL, B-, 8
cellular phone service in Israel	<========new Israeli shekels=========>					Post-IPO shrs: 97.5mm
Netanya, Israel	2004	2005	Sept 05*	Sept 06*	Sept 06*	IPO Mkt
Rev (mm)	5600	5114	3845	4191	$974	Cap (mm)
Gross Profit %	41%	39%	41%	41%	41%	$1,658
Profit (loss) ($mm)	617	483	418	390	$91	@$17
Profit (loss) %	11.0%	9.4%	10.9%	9.3%	9.3%
EBITDA % of rev	34%	32%	34%	34%	34%
Period churn rate	27%	20%	16%	11%	12.4%
				*nine months ended Sept 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Cellcom Israel (CEL)	$1,658	1.3	14	9.0	25.4	19%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	3	1	8
Business
. Leading provider of cellular communications services in Israel in terms of number of subscribers,
revenues and EBITDA for the nine months ended September 30, 2006.
. Upon launch of services in 1994, offered significantly lower prices for cellular communications
services than the incumbent provider and transformed the nature of cellular telephone usage in
Israel, turning it into a mass market consumption item.
. Surpassed the incumbent cellular operator and became the market leader in terms of number of
subscribers in 1998 and, despite the entry of two additional competitors, continued since then to
have the highest number of subscribers.
Subscribers & market share
. As of September 30, 2006, we provided services to approximately 2.83 million subscribers in
Israel with an estimated market share of 34.4%.
. Closest competitors had market shares of 31.9% and 28.7%, respectively.
History
. Principal founding shareholders were Discount Investment Corporation Ltd., or DIC, a
subsidiary of IDB Holding Corporation Ltd., or IDB, which prior to September 2005 indirectly
held 25% of our share capital, and BellSouth Corporation and the Safra brothers of Brazil, which
together indirectly held 69.5% of our share capital and voting rights in respect of an additional
5.5% of CE:L's share capital.
. IDB acquired the stakes of BellSouth and the Safra brothers in September 2005 and, following
the sale of minority stakes to four groups of investors in 2006, IDB currently indirectly holds
78.5% of share capital and voting rights in respect of an additional 5.5% of share capital.
. Following the acquisition by IDB in 2005, IDB put in place a new management team, including
Ami Erel, the Chairman of our Board of Directors, who had previously been President and CEO of
Bezeq - The Israeli Telecommunications Corporation Ltd., or Bezeq, the incumbent landline
provider, Amos Shapira, Chief Executive Officer, who had been CEO of Kimberly-Clark's Israeli
subsidiary and El Al Airlines, and Tal Raz, Chief Financial Officer, one of the founders and
formerly a director of Partner Communications Ltd., or Partner, one of the principal competitors.
Initiatives
The new management team has already implemented a series of initiatives to drive revenues.
. In addition, between September 2005 and September 2006, while increasing the number of
positions in units that deal directly with customers (such as sales and service), the new
management reduced overall workforce by over 2%, primarily through the elimination of over
16% of positions in units that do not deal directly with customers.
. Contracts with the main suppliers were also renegotiated to reduce costs.
. Following the implementation of these initiatives, revenues and operating income increased by
approximately 9% and 24%, respectively, and general and administrative expenses decreased by
5% in the first nine months of 2006 compared to the first nine months of 2005.
Expectations
. Notwithstanding these savings and management's continued focus on cost cutting initiatives,
CEL expect that selling expenses will continue to increase as a result of sales commissions paid
for new subscribers and increased marketing efforts.
. Further, the higher cost of 3G enabled handsets to support advanced content and data services
may increase the costs related to both subscriber acquisition and subscriber retention.
Dividend Policy
CEL's board of directors adopted a dividend policy to distribute each year at least 75% of annual
net income determined under Israeli GAAP
Competition
Competes with three other cellular communication operators:
. Partner, which is majority owned by Hutchison Whampoa;
. Pelephone, which is a wholly owned subsidiary of the incumbent landline provider,
. Bezeq; and MIRS, which is a wholly-owned subsidiary of Motorola.
Market shares
. CEL's estimated market share based on number of subscribers was 34.4% as of September 30, '06
. CEL estimates the market shares at such time of Partner, Pelephone and MIRS were 31.9%,
28.7% and 5%
Competition expected to intensify
. As a result of the implementation of number portability, which is likely to occur during 2007, as
it will remove a deterrent to switching providers.
. In addition, subject to policy formation by the regulator, mobile virtual network operators may
enter into agreements with cellular providers and enter into the market, increasing the competition.
. May also face competition in the future from other providers of voice and data communications,
including service providers that may offer WiMAX or WiFi wireless high speed data access.
Use of IPO proceeds
100% to selling shareholders
===================
Fortress Investment	FIG, B-, 7
global asset manager						Post-IPO shrs: 401mm
New York, NY						IPO Mkt
						Cap (mm)
Links to income statement tables from the Feb 2 S-1A filing						$7,026
. Proforma statement of operations, page 82, see filing for more						@$17.5
. Proforma income
. Historical & proforma for year ended Dec 31
Accounting policies going forward
FIG's historical combined financial information consolidates a large number of FIG's significant
funds, which will not be consolidated after this offering. Going forward FIG will
o Reflect their investment in the funds on FIG's balance sheet using the equity (cost) method of
accounting, rather than eliminating the investment in consolidation.
o Include management fees and incentive income earned from these funds on FIG's statement of
operations rather than eliminating the revenue in consolidation.
o Record equity in the income of these funds using the equity (cost) method of accounting.
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Fortress Inv (FIG)	$7,026	n/a	n/a	146.4	145.8	9%
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
. Global alternative asset manager
. Earns management fees based on the size of funds, incentive income based on the performance of
our funds, and investment income from principal investments in those funds
. Founded in 1998
. Assets under management (AUM) have grown from $1.2 billion as of December 31, 2001 to
$29.9 billion as of September 30, 2006.
Share structure
. Upon completion of this offering, Fortress's principals will directly own 77.7% of the Fortress
Operating Group
. Holders of Class A shares (including Nomura) will, through their interest in the company,
indirectly own 22.3% of the Fortress Operating Group, 8.6% of which will be owned by the
public.
FIG principals maintain overwhelming voting control
. "Our principals will have approval rights with respect to certain extraordinary transactions so
long as they and their permitted transferees continue to hold more than 40% of the total combined
voting power of our outstanding Class A and Class B shares."
Three core businesses
As of September 30, 2006
> Private Equity Funds
. Manages $17.5 billion of Assets Under Management (AUM) that primarily makes significant,
control-oriented investments in North America and Western Europe, with a focus on acquiring and
building asset-based businesses with significant cash flows.
. Also manages a family of ''long dated value'' funds focused on investing in undervalued assets
with limited current cash flows and long investment horizons;
> Hedge Funds
Manages $9.4 billion of AUM comprised of two business segments;
(i) hybrid hedge funds - which make highly diversified investments globally in undervalued and
distressed assets, including loans, assets and corporate securities; and
(ii) liquid hedge funds - which invest globally in fixed income, currency, equity and commodity
markets and related derivatives to capitalize on imbalances in the financial markets
> Publicly Traded Alternative Investment Vehicles, which refered to as ''Castles''
. $3.0 billion of aggregate market capitalization in two publicly traded companies managed by
FIG.
. The Castles currently invest primarily in real estate and real estate debt investments.
Recent event
. On January 17, 2007, Nomura Investment Managers U.S.A., Inc., a subsidiary of Nomura
Holdings, acquired for $888.0 million 55,071,450 Class A Shares representing, immediately prior
to this offering, 15% of the Fortress Operating Group.
. Price was $16.15 per share
. The company used the entire proceeds of the issuance to acquire a 15% interest in Fortress
Operating Group from Fortress's principals.
. Upon completion of this offering, Nomura's shares will represent approximately 13.7% of the
Fortress Operating Group.
Strategic partnership
. Both parties agreed that Nomura will work with FIG to develop a strategy to market and sell FIG
investment products.
. FIG believes that a strategic relationship with Nomura, the largest leading Japanese financial
institution, could provide FIG with access to Nomura's distribution capabilities in Asia.
. In addition, FIG believes that its relationship will provide FIG with potential investment
opportunities for the funds we manage.
Favorable investment environment
o The U.S. economy and capital markets have been robust during the periods presented, and FIG
has successfully identified opportunities within other economies where trends have also been
favorable for investment, such as Germany and the United Kingdom.
o Institutions, high net worth individuals and other investors are increasing their allocations of
capital to the alternative investment sector. As a leader in this sector based on the size, diversity
and performance of FIG's funds, FIG has been and continue to be able to attract a significant
amount of new capital, at least in part as a result of this trend.
o Allocations of capital to the alternative investment sector are also dependent, in part, on the
strength of the economy and the returns available from other investments relative to returns from
alternative investments.
. This, in turn, is also dependent on the interest rate and credit spread markets; as interest rates rise
and/or spreads widen, returns available on other investments would tend to increase, which could
slow capital flow to the alternative investment sector.
. The global economy has experienced relatively steady and historically low interest rates and tight
credit spreads during the periods presented, which has been favorable to FIG's business.
Risks
> Key-men risks
. Depends on Messrs. Briger, Edens, Kauffman, Nardone and Novogratz, and the loss of any of
their services would have a material adverse effect on FIG
. Investors in most of our hedge funds may generally redeem their investment without paying
redemption fees if the relevant principal ceases to perform his functions with respect to the fund
for 90 consecutive days.
. In addition, the decline of more than 20% of its assets under management of a fund following
one of such ''key-men'' events would result in a default under the credit agreement.
> Past successes not necessarily indicative of future results
o the historical returns of our funds should not be considered indicative of the future results that
should be expected from such funds or from any future funds FIG may raise;
o FIG's private equity funds' rates of returns, which are calculated on the basis of net asset value
of the funds' investments, reflect unrealized gains which may never be realized;
o FIG's private equity funds' rates of returns have been positively influenced by a select number
of investments that experienced rapid and substantial increases in value following the initial public
offerings of the private equity portfolio companies in which those investments were made
o FIG's funds' returns have benefited from investment opportunities and general market
conditions that may not repeat themselves, and there can be no assurance that current or future
funds will be able to avail themselves of profitable investment opportunities.
Dividend policy
. Intends to pay quarterly dividends on Class A shares (class B shareholders have the right to ,
commencing with a dividend to be paid in respect of the fiscal quarter in which this offering is
completed
. Note: The cash reflected on historical balance sheets, which consolidates many of FIG's funds, is
not FIG's cash and is not available to FIG; FIG depends on the cash receives from the Fortress Operating Group.
Risks to FIG cash allocations
. FIG will be required to pay its principals for most of the tax benefits FIG realizes as a result of
the tax basis step-up FIG receives in connection with taxable exchanges by FIG principals of units
held in the Fortress Operating Group entities or FIG acquisitions of units from our principals.
. At any time and from time to time, each principal will have the right to exchange their Fortress
Operating Group units for Class A shares in a taxable transaction.
Use of $533mm in IPO proceeds
Contribute to the Fortress Operating Group, which in turn will apply those proceeds as follows:
(a) to pay $250 million outstanding under a term loan facility
(b) to pay $85 million in revolving credit debt
(c) to fund $169 million of commitments to existing private equity funds
(d) $29 million for general business purposes.
===================
JA Solar	JASO, C, 7
China-based solar cells mfg						Post-IPO shrs: 44mm equivalent ADSs
Ningjin, Hebei Province, China				Sept 06*		IPO Mkt
Rev ($mm) 3rd parties			proforma	$32		Cap (mm)
Rev ($mm) related 3rd parties				$12		$592
Total Revenue				$44		@$13.5
Gross Profit %				25%
Profit (loss) ($mm)				$7
Profit (loss) %				21.6%
				*nine months ended Sept 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
JA Solar (JASO)	$592	10.1	63	2.8	2.8	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
Graded a C based on recent market weakness and price reductions
Business
. Manufacturers of high-performance solar cells based in China.
. Derives revenues primarily from sales of solar cells to solar module manufacturers.
. Made first commercial shipment in April 2006 from the first solar cell manufacturing line located
in Ningjin, Hebei province, which has a rated manufacturing capacity of 25 MW per annum.
. By the end of July 2006, the first solar cell manufacturing line was operating at its full capacity
. Installed two additional manufacturing lines each with a rated manufacturing capacity of 25 MW
per annum in the same facilities, which became fully operational in October 2006 and resulted in a
total rated manufacturing capacity of 75 MW per annum.
Recent declines in sales and prices
Sales
. Sales volume and average selling price in October 2006 have declined from those in September
2006 due to weakened market demand, increased competition and changes in other market
conditions.
The decline in November 2006 production from October 2006 was due to a scheduled five-day
power outage experienced in early November 2006 when the power grid in the Ningjin area
underwent an overhaul.
Average selling price
. Average selling price continued to decline in November 2006. Since September 2006, at the
request of customers in China, agreed to terminate or amend the terms of some of the long-term
customer contracts.
Nine months ended Sept 30, 2006
Revenues
. For the nine months ended September 30, 2006, sales to the three largest customers accounted for
approximately 47% of total revenues (two of which were related parties until August 2006, and
sales to them accounted for approximately 35% of total revenues), and sales to the largest
customer, a related party until August 2006, accounted for 23% of total revenues.
Production & sales
. Since commenced commercial production in April 2006, attempted to expand and diversify the
customer base, which has increased from a total of ten customers as of June 30, 2006 to 36
customers as of September 30, 2006, and to approximately 50 customers as of December 31, 2006.
. In addition, while direct sales to overseas customers only accounted for 1.3% of total sales
revenue for the nine months ended September 30, 2006, have sold products to customers in
Germany, Sweden, Spain, South Korea and the United States.
. From April 2006 to September 2006, sold a total of approximately 5.2 million pieces of solar
cells with a total power output of approximately 12.61 MW at an average selling price of RMB
27.0 (US$3.42) per watt.
Availability and Price of Silicon Wafers
Currently has a long-term silicon wafer supply agreement with Jinglong Group, the largest
producer and supplier of monocrystalline silicon wafers in China.
Customer Agreements
. For the nine months ended September 30, 2006, 98.7% of total sales revenue was generated
from sales to customers based in China. During this period, sales to the three largest customers
represented approximately 47% of total revenues, of which two were related parties until
August 2006 that represented approximately 35% of total revenues
. In January 2007, signed the largest long-term customer agreement to date with PowerLight, a
wholly-owned subsidiary of SunPower Corporation, under which JASO has agreed to supply
PowerLight with a total of 120 MW of solar cells through the end of 2009.
. In January 2007, also signed a long-term sales agreement with Crown Renewable Energy, under
which JASO agreed to supply Crown Renewable Energy with a total of 45 MW of solar cells
through the end of 2009
Competition
. In the global market, competitors include photovoltaic divisions of large conglomerates, such as
BP Solar International Inc., Schott AG, Sharp Corporation, Mitsubishi Electric Corporation, and
Sanyo Electric Co., Ltd., specialized cell and module manufacturers such as Motech Industries,
Inc., E-Ton Solar Tech Co., Ltd. and Q-Cells AG, as well as integrated manufacturers of
photovoltaic products such as SolarWorld AG.
. In the Chinese market, competes with Suntech Power Co., Ltd., Nanjing PV-Tech Co., Ltd.,
Solarfun Power Holdings Co., Ltd., Tianwei Yingli New Energy Resources Co., Ltd. and Jiangyin
Jetion Science & Technology Co., Ltd.
. Many of competitors are developing or currently producing products based on new solar
technologies, including amorphous silicon, ribbon and nano technologies. These new technologies
have certain advantages over the crystalline technologies that JASO currently uses because the
production process using the new technologies often can be integrated in a shorter and simpler
process and require less silicon materials for production.
. As a result, competitors using or developing these new technologies believe these technologies
will ultimately cost the same as or less than the cost of crystalline technologies similar to JASO's,
on a cost per watt basis.
. At present, however, JASO believes its products have higher efficiencies and longer lifetimes
compared to products produced using these competing technologies
Use of $186mm in IPO proceeds
o US$100 million to prepay for raw materials pursuant to a long-term wafer supply agreement
with M.SETEK;
o US$20 million to prepay for raw materials from other suppliers, including Jinglong Group;
o US$20 million to purchase manufacturing equipment and construct certain operating facilities
for planned Shanghai facilities to expand manufacturing capacity;
o US$19 million to repay short-term debt obligations;
o US$10 million to enhance research and development capabilities; and
o remaining amount to be used for working capital and other general corporate purposes.
===================
Mellanox Technologies	MLNX, C+, 7
fabless semiconductors						Post-IPO shrs: 33mm
Santa Clara, CA	2003	2004	2005	Sept 05*	Sept 06*	IPO Mkt
Rev ($mm)	$10	$20	$42	$30	$33	Cap (mm)
Gross Profit %	55%	57%	64%	62%	71%	$408
Profit (loss) ($mm)	($15.6)	($8.9)	$3.2	$1.9	$3.4	@$13
Profit (loss) %	-152.9%	-43.8%	7.6%	6.4%	10.4%
				*nine months ended Sept 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Mellanox Tech (MLNX)	$408	9.3	90	4.4	4.4	19%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	1	2	2	7
Compare & contrast -- annualizing recent results
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	Price
see 'competition' below	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	Feb 1
Mellanox Tech (MLNX)	$408	9.3	90	4.4	4.4	19%
Emulex Corp. (ELX)	$1,540	3.8	26	2.6	3.0	$17.85
QLogic Corp. (QLGC)	$2,940	5.1	24	3.5	4.1	$18.64
Broadcom Corp. (BRCM)	$17,470	4.8	40	4.3	6.2	$31.87
Marvell Technology (MRVL)	$10,560	5.1	*	3.3	7.0	$18.05
*MRVL restating earnings due to stock option issues, book value as of April 30, 2006
Business
. Fabless semiconductor company that provides high-performance interconnect solutions based on
semiconductor integrated circuits, or ICs.
. One of the pioneers of InfiniBand, an industry standard architecture that provides specifications
for high-performance interconnects.
. MLNX believes that it is the leading merchant supplier of field-proven InfiniBand-compliant
semiconductor products that deliver industry-leading performance and capabilities
. Next generation of products also supports the industry standard Ethernet interconnect
specification, which MLNX believes will expand the total addressable market.
Products
. MLNX integrated circuits are added to servers, storage, communications infrastructure
equipment and embedded systems by either integrating them directly on circuit boards or inserting
adapter cards into slots on the circuit board.
. MLNX has established significant expertise with high-performance interconnect solutions from
successfully developing and implementing multiple generations of our products.
Building blocks
. MLNX expertise enables it to develop and deliver products that serve as building blocks for
creating reliable and scalable InfiniBand and Ethernet solutions with leading performance at
significantly lower cost than products based on alternative interconnect solutions.
. Competes with other providers of semiconductor-based high performance interconnect products
based on InfiniBand, Ethernet, Fibre Channel and proprietary technologies.
Customers & product shipments
. Are incorporated into servers produced by the five largest server vendors: IBM, Hewlett-Packard,
Dell, Sun Microsystems and Fujitsu-Siemens.
. These server vendors collectively shipped the majority of servers in 2005, according to the
industry research firm IDC.
. Also supplies leading storage and communications infrastructure equipment vendors such as
Cisco Systems, LSI Logic, Network Appliance, SilverStorm Technologies, which was recently
acquired by QLogic Corporation, and Voltaire.
. Additionally, MLNX products are used by GE Fanuc, Mercury Computers, SeaChange
International and other vendors of embedded systems.
. Since introduction of first product in 2001, MLNX has shipped products containing
approximately 1.7 million InfiniBand ports, which MLNX believe demonstrates an established
customer and end-user base for its products.
Comparison of Nine Months Ended September 30, 2006
to Nine Months Ended September 30, 2005
Revenues
. Revenues were $32.7 million for the nine months ended September 30, 2006 compared to $29.9
million for the nine months ended September 30, 2005, representing an increase of approximately
9%.
. This increase in revenues resulted primarily from increased unit sales of approximately 28%,
driven by broader adoption of InfiniBand and MLNX's products, offset by a decrease in average
sales prices of 14%.
. A portion of the decrease in average sales prices was due to the decline from 9% to 2% in the
percentage of revenues attributable to switch systems, which have significantly higher sales prices.
. In addition, Cisco, one of MLNX's largest customers that represented 15% of revenues in the
nine months ended September 30, 2006, represented 49% of revenues in the nine months ended
September 30, 2005.
. A portion of this percentage decline was attributable to an accumulation of inventory in 2005 by
Cisco following its acquisition of Topspin Communications, which MLNX believes has been
substantially sold in 2005 and 2006.
. MLNX expect Cisco to remain one of its largest customers for the year ended December 31, '06
Gross Profit and Gross Margin.
. Gross profit was $23.1 million for the nine months ended September 30, 2006 compared to $18.6
million for the nine months ended September 30, 2005, representing an increase of 24%.
. As a percentage of revenues, gross margin increased to 71% in the nine months ended September
30, 2006 from 62% in the nine months ended September 30, 2005.
. This increase in gross margin was primarily due to a reduction in production costs associated
with outsourced labor, raw materials and volume discounts and reduced warranty expenses related
to selected product introductions.
. In addition, part of the gross margin improvement was due to increased sales of next generation
products for which MLNX receives higher margins.
Intellectual property
. As of September 30, 2006, had 10 issued patents and 27 patent applications pending in the U.S.,
5 issued patents in Taiwan and 6 applications pending in Israel, each of which covers aspects of
the technology in MLNX's products.
Competition
Includes semiconductor-based high performance interconnect products based on InfiniBand,
Ethernet, Fibre Channel and proprietary technologies.
With respect to
> InfiniBand products:
. The leading competitor is QLogic Corporation
. In Enterprise Data Centers, products based on the InfiniBand standard primarily competes with
two different industry-standard interconnect technologies, namely Ethernet and Fibre Channel.
. High-Performance Computing products based on the InfiniBand standard primarily compete
with the industry-standard interconnect technologies used in Enterprise Data Centers mentioned
above, in addition to proprietary technologies including Myrinet, while ICs are developed only by
Myricom.
> Ethernet technology
The leading IC vendors include Marvell Technology Group and Broadcom Corporation.
> Ethernet & Fibre Channel products
The leading IC vendors that provide Ethernet and Fibre Channel products to the market include
Emulex Corporation and QLogic Corporation.
> Embedded markets
Typically competes with interconnect technologies that are developed in-house by system OEM
vendors and created for specific applications.
Use of $81mm in IPO proceeds
Fund the development of products and for general corporate purposes, including working capital,
sales and marketing activities, research and development activities, general and administrative
matters and capital expenditures
===================
National CineMedia	NCMI, C+, 8
digital in-theater networks						Post-IPO shrs: 94mm
Centennial, CO			2005	Sept 06*	Sept 06**	IPO Mkt
Rev ($mm)		proforma	$222	$188	$74	Cap (mm)
Profit (loss) ($mm)			$7.5	$8.9	$5.5	$1,786
Profit (loss) %			3.4%	4.7%	7.4%	@$19
EBITDA % of reve			45.1%	46.9%	54.1%
Total screens			10,766	12,973
Digital screens in NCMI's network			8,713	11,077
at period end				*nine months ended Sept 30
				**three months ended Sept 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Natnl CineMedia (NCMI)	$1,786	6.0	81	-3.1	-2.2	40%
Based on annualizing Sept quarter results
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	1	4	1	8
Dividend policy
.NCMI intends to distribute as dividends to common stockholders a substantial portion of the
distributions received from NCM LLC.
Mission & business
NCMI's mission is to realize cinema advertising, marketing and other revenue enhancing
opportunities by utilizing the existing asset base of NCMI founding members, Regal
Entertainment and AMC Entertainment:
(1) Regal Entertainment Group (NYSE:RGC, $3.42bb market cap) is the largest motion picture
exhibitor in the world. The Company's theatre circuit, comprising Regal Cinemas, United Artists
Theatres and Edwards Theatres, operates 6,386 screens in 539 locations in 39 states and the
District of Columbia as of September 28, 2006.
(2) AMC Entertainment was taken private late 2004 in a deal valued at $2 billion and was merged
with Loews Cineplex Entertainment Corp. The merged company ended up managing or having
interests in about 450 theaters with 5,900 screens in 30 states and 13 countries, with 24,000
employees and more than 280 million moviegoing customers annually.
Financial comparables not available
Because of NCM LLC's formation date, there are no comparable full year periods available,
except for those of each of our predecessor entities, for which it is possible to compare RCM's
calendar year 2004 results to those of 2003, and NCN's fiscal year 2005 results to those of 2004.
Predecessor companies
. The joint predecessor company, RCM, provided advertising services to the Regal theatre circuit
during fiscal 2002, 2003, 2004, and the first quarter of fiscal 2005.
. Additionally, beginning in October 2004, RCM provided advertising services to one network
affiliate.
. The other joint predecessor company, NCN, provided advertising services to the AMC theatre
circuits and various network affiliates during its fiscal or other periods ended 2003, 2004, 2005
and the first quarter of fiscal 2005.
Formation History
. NCM LLC was formed on March 29, 2005, by AMC and Regal (RGC, $3.42bb market cap) as a
joint venture that combined the cinema advertising and meetings and events operations of Regal's
ubsidiary, RCM, and the cinema advertising operations of AMC's subsidiary, NCN.
. On July 15, 2005, Cinemark joined NCM LLC as a founding member.
. NCM LLC began selling advertising for Cinemark's screens on an exclusive basis beginning on
January 1, 2006, subject to the run-out of certain pre-existing contractual obligations for on-screen
advertising through April 1, 2006. By May 2006, all of Cinemark's digital screens were connected
to NCMI's digital content network.
Following the Completion of this Offering
. In connection with this offering, NCMI will purchase newly issued common membership units
from NCM LLC and will become a member and the sole manager of NCM LLC.
. Prior to the completion of this offering, NCM LLC has been wholly-owned by the founding
members.
Exhibitor Services Agreements
. Under the exhibitor services agreements, NCMI will make monthly theatre access fee payments
to the founding members, comprised of a payment per theatre attendee of $0.07 which will
increase by 8% every five years with the first such increase taking effect after the end of fiscal
2011 and a payment per digital screen of $66.67 which will increase 5% per year beginning at the
end of fiscal 2007.
. The theatre access fee paid in the aggregate to all founding members annually will not be less
than 12% of NCM LLC's aggregate annual advertising revenue as defined in the exhibitor services
agreements, or it will be adjusted upward to reach this minimum payment.
. NCM LLC revenue will increase significantly due to the payments from the founding members
for the display of up to 90 seconds of on-screen advertising under beverage concessionaire
agreements at an agreed upon rate
Loews Payments
. On January 26, 2006, AMC acquired the Loews theatre circuit. The Loews screen integration
agreement, effective as of January 5, 2007, between NCM LLC and AMC in connection with this
offering, commits AMC to cause the theatres it acquired from Loews to participate in the exhibitor
services agreements beginning on June 1, 2008.
. These U.S.-based Loews screens will become part of the national advertising network on an
exclusive basis beginning on June 1, 2008, following the expiration of Loews' pre-existing
contract with another cinema advertising provider.
. In accordance with a Loews screen integration agreement between NCMI and AMC, which will
be amended and restated in connection with this offering, AMC will pay NCMI an amount that
approximates the EBITDA NCMI would have generated if it were able to sell advertising in the
Loews theatre chain on an exclusive basis.
. Effective as of January 5, 2007, NCM LLC re-allocated the common membership units in NCM
LLC among the founding members to reflect the payments to be made by AMC pursuant to the
terms of the Loews screen integration agreement.
. These Loews payments will be made on a quarterly basis in arrears until May 31, 2008 and for
the three months ended September 28, 2006, would have been $2.5 million. The payments, for
accounting purposes, will be recorded directly to NCMI's members' equity accounts and will not
be reflected in NCM LLC's statements of operations.
Competition
. Competes in the $240 billion U.S. advertising industry with many other forms of marketing
media, including television, radio, print media, Internet and outdoor display advertising.
. Also competes with other providers of cinema advertising, which vary substantially in size,
including Screenvision and Unique Screen Media.
. As one of the largest providers of cinema advertising in the United States, NCMI believes that it
is are able to generate economies of scale, operating efficiencies and enhanced opportunities for
customers to access a national and regional audience
. NCMI's CineMeetings business competes with a number of venues including hotels, conference
facilities, restaurants, arenas and other convention properties, as well as virtual meetings hosted
on-line and across private teleconferencing networks.
. NCMI's digital programming events business competes with other broadcast and cable networks,
large-scale public venues, including concert halls and other public meeting venues and on-demand
events.
Use of $674mm in IPO proceeds
100% to purchase newly issued common membership units from NCM LLC at a price per unit
equal to the public offering price per share, less underwriting discounts and commissions and
offering expenses of $8.0 million.
. NCM LLC will use all of the estimated net proceeds of approximately $674.3 million it receives
from NCMI to pay a portion of the $686.3 million owed to founding members
. NCM LLC will also use $12.0 million from its term loan borrowings for this purpose.
. NCMI will purchase a number of common membership units equal to the number of shares of
common stock sold in this offering.
Also, another $700mm to members
. In connection with the completion of this offering, NCM LLC will enter into a new $805.0
million senior secured credit facility with a group of lenders that will include affiliates of several
of the underwriters.
. This facility will consist of a six-year, $80.0 million revolving credit facility and an eight-year,
$725.0 million term loan facility.
. The revolving credit facility will be available, subject to certain conditions, for general corporate
purposes of NCM LLC and its subsidiaries in the ordinary course of business and for other
transactions permitted under the credit agreement.
Another $700mm to members
The term loan will be due on the eighth anniversary of funding and will be used to redeem all the
preferred membership units of NCM LLC for an aggregate price of $698.5 million, and to pay
$12.0 million to the founding members
===================
Optimer Pharmaceutical	OPTR, C, 6
biotec						Post-IPO shrs: 20mm
San Diego, CA	2003	2004	2005	Sept 05*	Sept 06*	IPO Mkt
Grant & collabrtn Rev($mm)	$0.5	$1.1	$2.1	$1.5	$0.9	Cap (mm)
Profit (loss) ($mm)	($9.8)	($9.9)	($7.4)	($5.4)	($7.9)	$260
Profit (loss) %						@$20
				*nine months ended Sept 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Optimer Pharma (OPTR)	$260	216.7	-25	3.1	3.1	27%
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 discovering, developing and commercializing innovative
anti-infective products.
. Initial development efforts address products that treat gastrointestinal infections and related
diseases where current therapies have limitations, including diminished efficacy, serious adverse
side effects, drug-to-drug interactions, difficult patient compliance and bacterial resistance.
Two product candidates
Currently has two late-stage anti-infective product candidates, Difimicin and Prulifloxacin.
Difimicin
The lead product candidate, is an antibiotic currently in a Phase 2b/3 registration trial for the
treatment of Clostridium difficile-associated diarrhea, or CDAD, the most common nosocomial, or
hospital-acquired, diarrhea. CDAD is caused by infection of the lining of the colon by C. difficile
bacteria, which results in severe diarrhea and, in serious cases, death.
Developing Prulifloxacin for the treatment of infectious diarrhea.
. Prulifloxacin is an antibiotic currently in two Phase 3 trials for the treatment of travelers'
diarrhea, a form of infectious diarrhea.
. OPTR acquired the exclusive U.S. rights to develop and commercialize Prulifloxacin from
Nippon Shinyaku Co., Ltd. in June 2004.
. Prulifloxacin has been marketed by other companies in Japan since 2002 to treat a wide range of
bacterial infections, including infectious diarrhea, and in Italy since 2004 to treat urinary tract
infections and respiratory tract infections, or RTIs. Prulifloxacin has been established by other
parties to be well-tolerated as demonstrated by its use in the treatment of over two million patients.
Intellectual property
Portfolio of more than 80 patents and patent applications that OPTR either owns or has licensed
around key products and technologies.
. As of January 22, 2007, this portfolio included 14 issued U.S. patents and 13 pending U.S. patent
applications.
. Foreign counterparts to these included 11 issued patents and 47 pending patent applications.
Competition
Several pharmaceutical and biotechnology companies have already established themselves in the
markets for the treatment of CDAD and/or infectious diarrhea and many additional companies are
currently developing products for the treatment of CDAD and/or infectious diarrhea, which OPTR
expects will compete with Difimicin
Use of $62mm in IPO proceeds
o $25.0 million to fund certain of our obligations under our prospective buy-back agreement with
Par relating to our repurchase of Par's rights to develop and commercialize Difimicin and related
assets;
o $15.0 million to fund clinical trials and other research and development activities of Difimicin
for the treatment of CDAD;
o $7.0 million to fund clinical trials and other research and development activities of Prulifloxacin
for the treatment of travelers' diarrhea;
o $5.0 million to fund current and future clinical trials for our other product candidates and for
Difimicin and Prulifloxacin for other indications;
o $5.0 million to fund commercialization activities, including conducting pre-launch preparations
and initiating marketing and sales activities for Difimicin and Prulifloxacin; and
o the remainder to fund working capital, capital expenditures and other general corporate purposes,
including at least $2.0 million for additional costs and expenses associated with being a public
company, which also includes the cost of compliance with Sarbanes-Oxley Act internal control
regulations such as costs for hiring additional employees, consultants, counsel and accountants.
===================
Switch & Data (SDXC)	SDXC, C, 6
telecom interconnect						Post-IPO shrs: 34mm
Tampa, FL	2003	2004	2005	Sept 05*	Sept 06*	IPO Mkt
Rev ($mm)	$70	$91	$105	$79	$83	Cap (mm)
Cost of Rev	46%	48%	52%	51%	54%	$507
Loss ($mm) contining ops	($0.8)	($14.4)	($11.0)	($7.2)	($10.1)	@$15
Loss %	-1.1%	-15.8%	-10.5%	-9.1%	-12.2%
				*nine months ended Sept 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Switch & Data (SDXC)	$507	4.6	-38	4.9	14.0	35%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	1	2	1	6
Business
. Provides network neutral interconnection and colocation services primarily to Internet dependent
businesses including telecommunications carriers, Internet service providers, online content
providers and enterprises.
. As a network neutral provider, does not own or operate our own network, and, as a result,
interconnection services enable our customers to exchange network traffic through direct
connections with each other or through peering connections with multiple parties.
. Colocation services provide space and power for customers' networking and computing
equipment allowing those customers to avoid the costs of building and maintaining their own
facilities.
. Provides services through 34 facilities in 23 markets, representing the broadest network neutral
footprint in North America.
Unable to achieve profitability
. Although SDXC has been unable to achieve profitability, since founding in 1998, it says it has
increased revenue through a combination of organic growth and acquisitions.
Material Weaknesses in Internal Control
"In connection with the preparation of our 2005 consolidated financial statements as of December
31, 2005, and during the course of preparing for this offering, the independent registered public
accounting firm reported the following control deficiencies, which represent material weaknesses
in our internal control over financial reporting"
Competition
> Network Neutral Interconnection and Colocation Service Providers.
These competitors, including Equinix and Terremark, offer services that are similar to ours,
including cross connect services, Internet Exchange Services and colocation services.
> U.S.-based Telecommunications Carriers.
These telecommunications carriers, which include at&t and Level 3, typically provide
interconnection services through a single owned network and generally require bandwidth
capacity minimums as part of their pricing structures.
> Managed Service Providers, Web Hosting Companies and Internet Service Providers.
. Managed service providers AboveNet, InterNAP and Savvis, generally require that customers
purchase their Internet access and managed services directly from them.
. Some web hosting companies and Internet service providers, such as NaviSite, also provide
colocation services as part of their offerings.
Use of $123mm in IPO proceeds from sale of 9mm shares
(shareholders intend to sell 2.7mm shares)
. $91.9 million to repay debt
. $30.7 million capital expenditures, working capital and general corporate purposes
===================
Synta Pharmaceuticals	SNTA, C, 6
cancer biotech						Post-IPO shrs: 19mm
Lexington, MA	2003	2004	2005	Sept 05*	Sept 06*	IPO Mkt
Profit (loss) ($mm)	($28.0)	($46.0)	($69.0)	($53.0)	($45.0)	Cap (mm)
				*nine months ended Sept 30		$271
						@$25
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Synta Pharma (SNTA)	$271	n/a	-5	3.4	-6.8	48%
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 focused on discovering, developing and commercializing small molecule
drugs that address severe medical conditions with large potential markets, including cancer and
chronic inflammatory diseases.
. Diverse pipeline of clinical- and preclinical-stage drug candidates with distinct mechanisms of