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

Pre-IPO analysis, grading & scoring -- updated August 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

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

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scheduled below

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

Aug 13 week IPO schedule

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

CCS Medical (CCSM)

$570

1.0

165

2.0

-2.0

26%

medical supply distributor: C+, 7 -- highly leveraged, high p/e ratio

Post-IPO shrs:38mm

Vmware (VMW)

$10,503

8.8

77

11.7

34.6

9%

virtual storage solutions: B, 10*

Post-IPO shrs:375mm

*however notice software IPO aftermarket performance, below

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

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scheduled below

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Aug13 week IPO schedule: analysis, grading, scoring

CCS Medical

CCSM, C+, 7 -- highly leveraged, high p/e ratio

medical supply distributor

Post-IPO shrs:38mm

Clearwater, FL

2006

June, 07*

IPO Mkt

Rev ($mm)

$432

$274

Cap (mm)

Gross Profit

44%

46%

$570

Interest expense %

12%

10%

@$15

Profit (loss) $mm

-$27.0

$4.9

Profit (loss) %

-6%

2%

* six months ended June 30

Last four quarters

Sept, 06

Dec, 06

March, 07

June, 07

Rev ($mm)

$113

$120

$137

$138

Gross Profit

42%

44%

47%

45%

Interest expense %

11.5%

10.8%

9.5%

10.4%

Profit (loss) $mm

-$4.1

-$1.1

$4.0

$0.9

Profit (loss) %

-4%

-1%

3%

1%

Number of customers

390,446

397,051

399,081

399,846

Acquisition cost per diabetic patient*

$132

$141

$159

$168

*Notice the increase in acquisiton cost

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

CCS Medical (CCSM)

$570

1.0

165

2.0

-2.0

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

Business

. A leading medical supply management company delivering products and value-added services to

individuals living with select chronic medical conditions, including diabetes, urological and ostomy-related

disorders, chronic wounds, incontinence, respiratory conditions and other illnesses

. Targets healthcare professionals who focus on chronic conditions to expand an extensive relationship

based network. Target markets are large, growing at epidemic (definition: the occurrence of more cases of

a disease than would be expected in a community or region during a given time period) levels and being

serviced more frequently by mail

. Primary product focus is on diabetes, a large and fast growing component of the chronic care market.

Products distributed in the diabetes market include blood glucose testing supplies, insulin pumps and

related supplies, and prescription medications.

History

Formed in September 2005 in connection with the acquisition of Chronic Care Solutions, Inc. and MPTC

Holdings, Inc. by Warburg Pincus

Competition

Retail pharmacies such as CVS Corporation, Rite Aid Corporation, and Walgreen Co

. Direct-to-consumer distributors of medical supplies such as Polymedica Corp., Edgepark Surgical, and

Byram Healthcare; healthcare product distributors such as Henry Schein Inc., PSS World Medical Inc., and

Patterson Companies, Inc.

. Pharmacy benefit management companies such as Caremark Inc., Medco Health Solutions Inc., and

Express Scripts, Inc

. Prescription drug plans with in-house pharmacies.

Use of $138mm in IPO proceeds

Repay debt

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

Vmware

VMW, B, 10 -- however notice software IPO aftermarket performance, below

virtual storage solutions

Post-IPO shrs:375mm

Palo Alto, CA

2005

2006

June, 06*

June, 07*

IPO Mkt

Rev ($mm)

$387

$704

$204

$374

Cap (mm)

Gross Profit

83%

82%

83%

83%

$10,503

Profit (loss) $mm

$67.0

$86.0

$35.7

$75.3

@$28

Profit (loss) %

17%

12%

18%

20%

Deferred revenue

$199

$416

* six months ended June 30

Last five quarters

June, 06

Sept, 06

Dec, 06

March, 07

June, 07

Rev ($mm)

$156

$189

$230

$259

$297

Gross Profit

83%

80%

83%

83%

84%

Profit (loss) $mm

$15.1

$19.3

$31.0

$41.1

$34.2

Profit (loss) %

10%

10%

13%

16%

12%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Vmware (VMW)

$10,503

8.8

77

11.7

34.6

9%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

3

3

2

10

Software IPO performance in the last 12months

Notice: on average software IPOs have lost 12% of their value in the aftermarket

Company

IPO

1st day

1st day

Aug 9

%chg

%chg from

(most recent IPOs first)

price

close

% chg

price

from IPO

from 1st

from IPO

day

DemandTec (DMAN)

$11.00

$9.63

-12%

$9.50

-14%

-1%

BladeLogic (BLOG)

$17.00

$25.07

47%

$22.57

33%

-10%

Netezza (NX)

$12.00

$17.39

45%

$13.94

16%

-20%

Solera Hldg )SLH)

$16.00

$18.40

15%

$20.03

25%

9%

Sourcefire (FIRE)

$15.00

$15.49

3%

$10.10

-33%

-35%

Salary.com (SLRY)

$10.50

$12.50

19%

$12.89

23%

3%

Double-Take (DBTK)

$11.00

$12.66

15%

$16.25

48%

28%

Guidance (GUID)

$11.50

$15.18

32%

$12.16

6%

-20%

MEDecision (MEDE)

$10.00

$10.00

0%

$4.05

-60%

-60%

DivX (DIVX)

$16.00

$18.70

17%

$13.96

-13%

-25%

CommVault (CLVT)

$14.50

$17.00

17%

$17.56

21%

3%

Total (11)

19%

-11%

Range

-12 to 47%

-60 to 28%

Ticker

IPO date

Business

BLOG

7/24/2007

data center automation software

NZ

7/18/2007

data warehousing

DMAN

8/8/2007

on-demand pricing optimization software

SLH

5/10/2007

auto claimes processing software

FIRE

3/8/2007

real-time computer network intrusion detection

SLRY

2/14/2007

on-demand compensation management software

DBTK

12/14/2006

data protection software for Microsoft servers

GUID

12/12/2006

analyzes digital data across a network.

MEDE

12/12/2006

for healthcare insurers

DIVX

9/21/2006

digital video compression software

CVLT

9/21/2006

data management software

Business

. The leading provider of virtualization solutions

. Virtualization solutions represent a pioneering approach to computing that separates the operating system

and application software from the underlying hardware to achieve significant improvements in efficiency,

availability, flexibility and manageability.

. VMW solutions enable organizations to aggregate multiple servers, storage infrastructure and networks

together into shared pools of capacity that can be allocated dynamically, securely and reliably to

applications as needed, increasing hardware utilization and reducing spending.

. VMW believes that the market opportunity for its virtualization solutions is large and expanding, with

24.6 million x86 servers and 489.7 million business client PCs installed worldwide as of December 2006.

Customer base

. Includes 100% of the Fortune 100 and over 84% of the Fortune 1,000.

. Has grown to include 20,000 organizations of all sizes across numerous industries

. VMW believes its solutions deliver significant economic value for customers, and many have adopted

VMW's solutions as the strategic and architectural foundation for their future computing initiatives.

Market growth

. VMW believes that the addressable market opportunity for its virtualization solutions is large and

expanding.

. IDC estimates that less than one million of the 24.6 million x86 servers and less than five million of the

489.7 million business client PCs deployed worldwide are running virtualization software.

. VMW believes industry trends towards more powerful yet under-utilized multi-core servers and the

increasing complexity of managing desktop environments will further accelerate the widespread adoption

of virtualization for both server and desktop deployments.

Virtualization history

. First introduced in the 1970s to enable multiple business applications to share and fully harness the

centralized computing capacity of mainframe systems.

. Virtualization was effectively abandoned during the 1980s and 1990s when client-server applications and

inexpensive x86 servers and desktops established the model of distributed computing.

. Rather than sharing resources centrally in the mainframe model, organizations used the low cost of

distributed systems to build up islands of computing capacity, providing some benefits but also introducing

new challenges.

. In 1999, VMware introduced virtualization to x86 systems as a means to efficiently address many of these

challenges and to transform x86 systems into general purpose, shared hardware infrastructure that offers

full isolation, mobility and operating system choice for application environments.

Industry Background

The introduction of x86 servers in the 1980s provided a low-cost alternative to mainframe and proprietary

UNIX systems. The broad adoption of Windows and the emergence of Linux as server operating systems in

the 1990s established x86 servers as the industry standard. The growth in x86 server and desktop

deployments has introduced new operational risks and IT infrastructure challenges.

> These challenges include:

o Low Infrastructure Utilization

Typical x86 server deployments achieve an average utilization of only 10% to 15% of total capacity,

according to International Data Corporation (IDC), a market research firm. Organizations typically run one

application per server to avoid the risk of vulnerabilities in one application affecting the availability of

another application on the same server.

o Increasing Physical Infrastructure Costs

The operational costs to support growing physical infrastructure have steadily increased. Most computing

infrastructure must remain operational at all times, resulting in power consumption, cooling and facilities

costs that do not vary with utilization levels.

o Increasing IT Management Costs

As computing environments become more complex, the level of specialized education and experience

required for infrastructure management personnel and the associated costs of such personnel have

increased. Organizations spend disproportionate time and resources on manual tasks associated with server

maintenance, and thus require more personnel to complete these tasks.

o Insufficient Failover and Disaster Protection

Organizations are increasingly affected by the downtime of critical server applications and inaccessibility

of critical end user desktops. The threat of security attacks, natural disasters, health pandemics and

terrorism has elevated the importance of business continuity planning for both desktops and servers.

o Desktop Management and Security

Managing and securing enterprise desktops present numerous challenges. Controlling a distributed desktop

environment and enforcing management, access and security policies without impairing users' ability to

work effectively is complex and expensive. Numerous patches and upgrades must be continually applied to

desktop environments to eliminate security vulnerabilities.

VMW's virtualization solutions

. Run on industry-standard servers and desktops and support a wide range of operating system and

application environments, as well as networking and storage infrastructure.

. Functions independently of the hardware and operating system to provide customers with a broad

platform choice

. VMW's solutions provide a key integration point for hardware and infrastructure management vendors to

deliver differentiated value that can be applied uniformly across all application and operating system

environments.

> Key benefits to VMW's virtualization solutions include:

o Server Consolidation and Infrastructure Optimization

Enables organizations to achieve significantly higher resource utilization by pooling common infrastructure

resources and breaking the legacy "one application to one server" model.

o Physical Infrastructure Cost Reduction

. Through server consolidation and containment, solutions reduce the required number of servers and other

related infrastructure overhead.

. Organizations are able to significantly decrease physical infrastructure costs through reduced data center

space, power and cooling requirements.

o Improved Operational Flexibility and Responsiveness

. Offers a set of automation and management solutions that reduce the amount of time IT professionals

must spend on largely reactive tasks, such as provisioning, configuration, monitoring and maintenance

. Additionally, as the need for physical infrastructure decreases, so does the need for the highly-specialized

personnel required to manage and maintain such environments.

o Increased Application Availability and Improved Business Continuity

. Solutions enable organizations to reduce both planned and unplanned downtime in their computing

environments by allowing them to securely migrate entire virtual environments to separate servers or even

data center locations without user interruption.

o Improved Desktop Manageability and Security

. VMW's desktop virtualization solutions allow IT organizations to efficiently control and secure desktop

environments to end users regardless of their location, desktop hardware, operating system or business

application access needs.

History with EMC Corp (NYSE: EMC, $37bb market cap)

. VMW was acquired by EMC in January 2004, and prior to this offering operated as a wholly owned

subsidiary of EMC

. Immediately following this offering and subject to the closing of the sales of our Class A common stock

to Intel Capital Corporation and Cisco Systems, Inc. EMC will hold 87% of VMW's outstanding common

stock and 98% of the combined voting power of outstanding common stock

Competition

> Microsoft is the primary competitor for virtualization solutions

. Microsoft currently provides products that compete with some of VMW's entry-level offerings and has

announced its intention to provide products that will compete with some of VMW's enterprise-class

products in the future.

. VMR has developed its virtualization solutions as a software layer between the hardware and the

operating system that is not tied to a specific operating system

. VMR believes its approach is differentiated from Microsoft's and delivers significant flexibility and

superior economic value to customers.

> Other

. Also competes with small companies whose products are based on emerging open-source technologies for

system virtualization.

. In addition, competes with companies that take different approaches to virtualization.

. However, VMR believes these solutions offer limited support for heterogeneous operating system

deployments.

. Furthermore, VMR's VMware Infrastructure suite competes with products that provide high availability

clustering, workload management and resource management.

Intellectual Property

. 22 US patents covering various aspects of server virtualization and other technologies

. The granted United States patents will expire beginning in 2018, with the latest granted patent expiring in

'2024.

. Also has numerous United States provisional and non-provisional patent applications pending that cover

other aspects of virtualization and other technologies.

Investments by Intel & Cisco

> Intel

. Intel Capital, the global investment arm of Intel, has agreed to invest $218.5 million in VMR's Class A

common stock at $23.00 per share

. Intel's investment is intended to foster strengthened intercompany collaboration towards accelerating

VMware virtualization product adoption on Intel architecture and reinforcing the value of virtualization

technology for customers.

> Cisco

In July 2007, Cisco Systems, Inc., or Cisco, agreed to purchase $150mm of Class A common stock from

EMC at $25.00 per share for an aggregate purchase price of $150.0 million

Use of $866mm in IPO proceeds from sale of 75.1mm shares

including 9.5mm shares to be sold to Intel

o Repay $350.0 million of intercompany indebtedness* owed to EMC;

o Purchase from EMC VMW's new headquarters facilities for an amount equal to the cost expended by

EMC to date in constructing the facilities, which totaled approximately $127.0 million

o For working capital and other general corporate purposes, including to finance growth, develop new

products and fund capital expenditures and potential acquisitions.

* the intercompany indebtedness was incurred in April 2007 to fund an $800 million dividend paid to EMC

in the form of a note.

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

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

Pre-IPO analysis, grading & scoring -- updated August 3

. 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

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

Aug 6 week IPO schedule

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Cross Match Tech

$431

4.9

-179

1.8

3.0

41%

biometric technologies: C+, 7

Post-IPO shrs:29mm

Cumberland Phar (CPIX)

$378

16.0

128

3.9

3.0

25%

acquisition of prescription products: C+, 6.5

Post-IPO shrs:25mm

DemandTec (DMAN)

$288

5.5

-60

6.0

7.5

23%

demand mgt softwr for retailiing: C+, 6.5

Post-IPO shrs:26mm

E-House (China) (EJ)

$933

10.1

37

4.9

5.0

20%

China real estate services: B-, 9

Post-IPO shrs:75mm

Hireright (HIRE)

$179

2.8

37

3.0

3.0

39%

employee screening software: C+, 7

Post-IPO shrs:11mm

Horsehead Holding ZINC

$646

1.1

6

4.4

3.8

16%

zinc recyler: C+, 6

Post-IPO shrs:34mm

Masimo Corp (MASI)

$898

3.8

51

10.4

11.0

23%

on-invasive patient monitoring: C+, 8

Post-IPO shrs:53mm

MercadoLibre (MELI)

$745

12.0

186

11.0

17.0

37%

Online trading platform, Latin Am: C+, 7

Post-IPO shrs:44mm

Paragon Shipng (PRGN)

$408

n/a

n/a

1.6

1.6

43%

dry bulk shipping: C+, 6

Post-IPO shrs:24mm

Quicksilver Gas LP KGS

$230

10.6

-64

2.5

5.2

43%

natural gas processor in Texas: C+, 7

Post-IPO shrs:11.5mm

Tully's Coffee (TULY)

$99

1.5

-11

3.5

3.6

39%

specialty coffee stores: C, 5

March fiscal

Post-IPO shrs:9mm

WuXi PharmaTech (WX)

$720

5.3

30

3.5

3.7

22%

biopharma R&D outsourcing: B-, 9

Post-IPO shrs:60mm

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

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scheduled below

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Aug 6 week IPO schedule: analysis, grading, scoring<