IPO CORNER

Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop
Pre-IPO analysis, grading & scoring -- updated July 20
. Business Model Rating Criteria
A = high growth market, potential leader; B = more competitive market; C= 'public venture capital'
. Calculations
. IPO Price to annualized Sales Ratio -- (Price / Sales)
Numerator		Denominator
IPO market capitalization…		Annualized Sales (based on recent results)
(post-IPO # of shares times mid-point of IPO price range)
. IPO Price to annualized Earnings (loss) -- (Price / Earnings)
Numerator		Denominator
IPO market cap		Annualized Earnings (loss) from the last quarter
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SEARCH BY COMPANY		In your browser use 'Edit/Find' to search for companies
or ticker for analysis		scheduled below
===================
July 23 week IPO schedule
BladeLogic (BLOG)	$337	5.9	-498	7.9	7.9	19%
data center automation sftw: C+, 7						Post-IPO shrs: 26mm

lululemon athletica LULU	$828	4.6	59	13.1	15.1	24%
yoga-inspired apparel: B-, 8						Post-IPO shrs: 75mm

Monotype Imaging TYPE	$470	4.6	74	5.2	-3.0	33%
text imaging solutions: C+, 7						Post-IPO shrs: 33.6mm

Perfect World (PWRD)	$728	16.1	35	6.2	6.2	34
China online 3D video games: B-, 8						Post-IPO shrs:56mm ADSs equiv

Rex Energy	$374	38.6	-101	1.6	1.6	47%
oil/gas drilling: C+, 7						Post-IPO shrs:31mm

Validus Holdings, (VR)	$1,798	1.8	6	1.1	1.2	22%
property catastrophe reinsurance: C+, 7						Post-IPO shrs:726mm

Voltaire Ltd. (VOLT)	$267	7.7	22	3.2	3.2	38%
server/storage switching and software: C+, 6						Post-IPO shrs: 20.5mm

===================
SEARCH BY COMPANY		In your browser use 'Edit/Find' to search for companies
or ticker for analysis		scheduled below
===================
July 23wk financials, analysis, grading, scoring
BladeLogic	BLOG, C+, 7
data center automation sftw	Dec 31 fisal year		Sept, 06*			Post-IPO shrs: 26mm
Lexington, MA	2004	2005	2007	March, 06**	March, 07**	IPO Mkt
Rev ($mm)	$12.0	$18.3	$25	$12.2	$27.0	Cap (mm)
Gross Profit	84%	80%	84%	87%	86%	$337
Profit (loss) $mm	-$4.0	-$7.9	-$7.2	-$4.1	-$0.2	@$13
Profit (loss) %	-33%	-43%	-29%	-34%	-1%
			* nine months ended Sept 30
			**six months ended March 31
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
BladeLogic (BLOG)	$337	5.9	-498	7.9	7.9	19%
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
. Data center automation software to enterprises, service providers, government agencies and other
organizations in North America, Europe and Asia.
. Products and services enable organizations of any size to address the full lifecycle of data center
management using one integrated solution for provisioning, change, administration and compliance across
complex, distributed server and application environments.
Results of operations for the March six months, 07 vs 06
> License revenue.
. License revenue increased 142%, after excluding the change in foreign currency exchange rates, or 149%
in absolute dollars.
. The increase in license revenue was primarily a result of an increase in the licenses delivered during the
six months ended March 31, 2007 as compared to the six months ended March 31, 2006, which reflected
the growth in the worldwide market for products, geographic expansion, primarily in Europe, and an
increase in headcount of 22 employees in our sales and marketing organizations.
. International revenues, excluding Canada, represented 37% of license revenues for the six months ended
March 31, 2007, compared to 8% for the six months ended March 31, 2006 and the international sales force
increased by three.
> Services revenue
. Services revenue, which consists of revenue from maintenance and professional services, increased 71%,
after excluding the change in foreign currency exchange rates, or 73% in absolute dollars.
. The increase in services revenue was attributable to an increase of 70% in maintenance and support fees
associated with the growth in our installed product base and an increase of 30% in consulting and training
revenue, including reimbursable travel expenses.
. Maintenance revenue, which is generally recurring revenue renewed annually, represented 53% of
services revenue for the six months ended March 31, 2006 and 59% for the six months ended March 31,
'2007.
. The balance of the services revenue relates to professional services, which are generally project-oriented
and performed on a time-and-materials basis. International revenues, excluding Canada, represented 24%
of services revenues for the six months ended March 31, 2007, compared to 17% for the six months ended
March 31, 2006.
Competition
Primary competitors include BMC Software, Inc., Configuresoft, Inc., Hewlett-Packard Company,
International Business Machines Corporation, Opsware Inc. and Symantec Corporation.
Use of $45.4mm in IPO proceeds from sale of 3.94mm shares
(shareholders intend to sell 1.06mm shares)
o $5.9 million to redeem and cancel Series A redeemable preferred
o for general corporate purposes, including the potential funding of strategic acquisitions or investments,
the continued expansion of sales and marketing activities and the expanded funding of research and
development efforts.
===================
lululemon athletica	LULU, B-, 8
yoga-inspired apparel			January 31 fiscal			Post-IPO shrs: 75mm
Vancouver, BC, Canada	2005	2006	2007	April, 06*	April, 07*	IPO Mkt
Rev ($mm)	$41.0	$84.0	$149	$28.0	$45.0	Cap (mm)
Gross Profit	52%	51%	51%	52%	51%	$828
Profit (loss) $mm	-$1.4	$1.4	$7.7	$3.2	$3.5	@$11
Profit (loss) %	-3%	2%	5%	11%	8%
				*quarter ended April 30
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
lululemon athletica LULU	$828	4.6	59	13.1	15.1	24%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		3	2	2	1	8
Compare & contrast
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	Profit
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	Margin %
lululemon athletica LULU	$828	4.6	59	13.1	15.1	7.8%
Under Armour, Inc. (UA)	$2,760	5.6	69	12.2	12.6	8.0%
Bebe Stores, Inc. (BEBE)	$1,450	2.4	28	3.0	3.0	8.4%
Business
. LULU believes lululemon is one of the fastest growing designers and retailers of technical athletic apparel
in North America, marketing yoga-inspired apparel is marketed under the lululemon athletica brand name
. As of July 1, 2007, LULU's branded apparel was principally sold through 59 corporate-owned and
franchise stores that are primarily located in Canada and the United States.
> Vertical retail strategy
LULU believes its vertical retail strategy allows LULU to interact more directly with and gain insights
from customers while providing greater control of the brand.
> Comparable sales & $ per sq ft
During fiscal 2006, comparable store sales increased 25% and stores opened at least one year averaged
sales of approximately $1,400 per square foot, which LULU believes is among the best in the apparel retail
sector.
Corporate-owned stores opened & planned expansion
end of fiscal year (Jan 31)
Year ended Jan 31 2005: 14
Year ended Jan 31, 2006: added 17; total 31
Year ended Jan 31, 2007: added 14; total 45
Year ended Jan 31, 2008: expects to add 20-25; total 65-70
Year ended Jan 31, 2009: expects to add 30-35; total 95-105
Comparable store sales growth
Year ended Jan 31, 2007: 25%:
Year ended Jan 31, 2006: 19%
Revenue
. For fiscal 2006, 87.1% of net revenue was derived from sales of products in Canada, 11.7% of net revenue
was derived from the sales of products in the United States and 1.2% of net revenue was derived from sales
of our products in Australia and Japan.
. For the first quarter of fiscal 2007, 82.0% of net revenue was derived from sales of products in Canada,
16.5% of net revenue was derived from the sales of products in the United States and 1.5% of net revenue
was derived from sales of products in Australia and Japan.
. Recently increased focus on the men's apparel line, which represented approximately 11% of net revenue
for each of fiscal 2006 and the first quarter of fiscal 2007, and the accessories business, which represented
approximately 9% and 10% of net revenue for fiscal 2006 and the first quarter of fiscal 2007, respectively
Growth plan
> Grow our Store Base in North America.
. Plans to add new stores to strengthen existing markets while selectively entering new markets in the
United States and Canada.
. Believes that strong sales in the United States to date demonstrate the portability of LULU's brand and
retail concept.
. Expects to open 20 to 25 stores in fiscal 2007 and 30 to 35 additional stores in fiscal 2008 in the United
States and Canada.
> Expand Beyond North America
. Plans to open additional stores in Japan and Australia through existing and planned joint venture
relationships.
. Over time, intends to pursue additional joint venture opportunities in other Asian and European markets
that we believe offer similar, attractive demographics.
. Believes the joint venture model allows LULU to leverage partners' knowledge of local markets to reduce
risks and improve LULU's probability of success in these markets.
Competition
Vertical retail distribution strategy differentiates LULU from competitors
. In direct competition with wholesalers and direct sellers of athletic apparel, such as Nike, Inc., adidas AG,
which includes the adidas and Reebok brands, and Under Armour, Inc.
. Also competes with retailers specifically focused on women's athletic apparel including Lucy Activewear
Inc., The Finish Line Inc. (including Finish Line and Paiva collection), and bebe stores, inc. (BEBE
SPORT collection).
Private equity
Upon completion of a private equity investment in December 2005 the founder beneficially owned 52% of
the equity of lululemon, while Advent International Corporation, Brooke Private Equity Advisors and
Highland Capital Partners together effectively beneficially owned a total of approximately 48% of the
equity of lululemon, before giving effect to employee stock options.
Use of $18.4mm in IPO proceeds from sale of 2.3mm shares
(shareholders intent to sell 15.9mm shares for $175mm)
. Together with cash flow from operations, to fund new store openings and working capital, and for other
general corporate purposes, which may include general and administrative expenses, and potential
acquisitions of franchises.
. For fiscal 2007 and fiscal 2008, budgeted an aggregate of $28.0 million to $34.0 million for new store
openings
===================
Monotype Imaging	TYPE,
text imaging solutions						Post-IPO shrs: 33.6mm
Woburn, MA		2005	2006	March, 06*	March, 07*	IPO Mkt
Rev ($mm)		$74.0	$86.0	$18.5	$25.7	Cap (mm)
Gross Profit		87%	90%	89%	89%	$470
Operating income %		37%	34%	34%	32%	@$14
Interest payments		20%	23%	22%	21%
Profit (loss) $mm		$7.1	$7.1	$1.7	$1.6
Profit (loss) %		10%	8%	9%	6%
				*quarter ended March 31
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Monotype Imaging TYPE	$470	4.6	74	5.2	-3.0	33%
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 global provider of text imaging solutions.
. Technologies and fonts enable the display and printing of high quality digital text.
. Software technologies have been widely deployed across, and embedded in, a range of consumer
electronic, or CE, devices, including laser printers, digital copiers, mobile phones, digital televisions, set
top boxes and digital cameras, as well as in numerous software applications and operating systems.
Applications
. In the laser printer market, worked together with industry leaders for over 15 years to provide
critical components embedded in printing standards.
. Scaling, compression, text layout, color and printer driver technologies solve critical text imaging issues
for CE device manufacturers by rendering high quality text on low resolution and memory constrained CE
devices.
. TYPE combines these proprietary technologies with access to over 9,000 typefaces from a library of some
of the most widely used designs in the world, including popular names like Helvetica and Times New
Roman.
. Also licenses typefaces to creative and business professionals through custom font design services, direct
sales and e-commerce websites fonts.com, itcfonts.com, linotype.com and faces.co.uk, which attracted
more than 20 million visits in 2006 from over 200 countries.
Customers
o mobile phone makers Nokia, Motorola and Sony Ericsson;
o eight of the top ten laser printer manufacturers based on the volume of units shipped worldwide;
o digital television and set-top box manufacturers TTE Technology, Toshiba and JVC; and
o multinational corporations Agilent, British Airways and Barclays.
> Also
. TYPE's text imaging solutions are embedded in a broad range of CE devices and are compatible with
most major operating environments and those developed directly by CE device manufacturers.
. Partners with operating system and software application vendors Microsoft, Apple, Symbian,
QUALCOMM and ACCESS (PalmSource).
Recent Acquisitions
> Linotype
. On August 1, 2006, completed the acquisition of the capital stock of Linotype. The total purchase price
for Linotype and the related intellectual property was approximately $59.7 million in cash, which included
the related acquisition costs of approximately $699.
. The purchase price was financed with proceeds from the term loans under First and Second Lien Credit
Facilities. Linotype's results of operations have been included in consolidated financial statements since the
date of acquisition and all intercompany balances have been eliminated.
> China Type Design
. On July 28, 2006, acquired 80.01% of the capital stock of China Type Design for approximately $4.1
million in cash and three promissory notes in the aggregate amount of $600 that are convertible into a total
of 413,345 shares of our restricted common stock as of June 1, 2007 upon the closing of this offering.
. At the time of this acquisition, already had a 19.99% ownership interest in China Type Design, and
following the acquisition, it became a wholly-owned subsidiary.
. The results of operations of China Type Design have been included in consolidated financial statements
since the date of acquisition and all intercompany balances have been eliminated.
. Prior to the acquisition, TYPE did not have the ability to exercise significant influence over operating and
financial policies of China Type Design, and accordingly, the results of its operations were accounted for
using the cost method of accounting.
Limited number of customers
. In 2006 and during the three months ended March 31, 2007, the top ten licensees by revenue accounted
for approximately 53.0% and 48.7%, respectively, of total revenue.
. If Linotype had not been included for all of 2006, the top ten licensees by revenue would have accounted
for approximately 58.0% of total revenue for the period.
. In 2005, customer Lexmark International, Inc. accounted for more than 10% of total revenue for the year.
Accordingly, if we are unable to maintain relationships with major customers or establish relationships with
new customers, our licensing revenue will be adversely affected.
Worldwide
. For 2006 and the three months ended March 31, 2007, sales by subsidiaries located outside
North America comprised 56.5% and 64.0%, respectively, of total revenue.
. Expects that sales by international subsidiaries will continue to represent a substantial portion of revenue
for the foreseeable future and that this will increase when Linotype and China Type Design revenue is
included for a full year.
Competitive Strengths
> Established Relationships with Market Leaders.
. Benefits from established relationships with our OEM customers, many of which date back 15 years or
more.
. Because our technologies and fonts are embedded in the hardware of our customers' CE devices, it would
be costly and time-consuming to replace them.
> Attractive Business Model
. Has a large, recurring base of licensing revenue.
. In addition, has significant operational leverage, a relatively low cash tax rate and low capital
requirements.
Intellectual property
Eight patents, and have 13 patents pending with, the U.S. Patent and Trademark Office
Competition
. Principally Adobe and Bitstream
. Also competes with local providers of text imaging solutions whose solutions are specific to a particular
country's language.
. Also competes with FreeType, an open source collaborative organization that provides its Linux font
rendering code for free, and with printer driver provider Software Imaging.
. The competition for TYPE's fonts and custom font design services generally comes from companies
offering their own typeface libraries and custom typeface services, including Bitstream and Adobe, font
foundry websites, font-related websites and independent professionals.
. More generally, also competes with in-house resources of OEM customers in the areas of font, driver and
color technologies.
Leveraged buy-out
. Until November 2004, Agfa Corporation, or Agfa, operated its font and printer driver business through its
wholly-owned subsidiary, Agfa Monotype Corporation, or Agfa Monotype.
. On November 5, 2004, through a series of transactions, all of the common stock of Agfa Monotype was
acquired by a newly formed entity, Monotype Imaging Inc., or Monotype Imaging, for a total purchase
price of $194.0 million consisting of cash plus assumption of certain obligations.
. The transaction was financed with $112.2 million in debt financing from certain credit facilities and $78.4
million in capital contributions made by investment funds associated with TA Associates, Inc., or TA
Associates, D.B. Zwirn Special Opportunities Fund, or D.B. Zwirn, and certain of the former officers and
employees of Agfa Monotype, or the Investing Employees, in exchange for convertible preferred stock,
common stock and subordinated notes of Imaging Holdings Corp., or IHC, the parent of Monotype
Imaging.
. These capital contributions represented $2.36 per share on an as converted basis which compares with an
assumed value of $14.00 per share, the midpoint of the range on the cover page of this prospectus.
. In August 2005, IHC entered into a recapitalization transaction and debt refinancing, which resulted in
Monotype Imaging Holdings Inc., the issuer in this offering, becoming the parent of IHC. All of the holders
of shares of common stock of IHC exchanged their shares for shares of our common stock and all of the
holders of shares of convertible preferred stock of IHC exchanged their shares for shares of TYPE's
convertible preferred stock and payments of an aggregate of $48.3 million. The relative equity interests of
the stockholders remained unchanged following this recapitalization.
Use of $73.6mm in IPO proceeds from sale of 6mm shares
(shareholders intent to sell 5mm shares for $70mm)
Together with the $10.2 million in proceeds from the increase in the term loan under the First Lien Credit
Facility, to:
o repay in full our term loan arranged by D.B. Zwirn, or the Second Lien Credit Facility, in the amount of
$72.1 million, which includes $2.1 million in prepayment penalties; and
o redeem the shares of redeemable preferred stock issuable upon conversion of the convertible preferred
stock from TA Associates, D.B. Zwirn and the Investing Employees in the amount of $9.7 million.
. After giving effect to this offering, TA Associates will hold approximately 52.4% of common stock.
===================
Perfect World	PWRD, B-, 8
China online 3D video games						Post-IPO shrs:56mm ADSs equiv
Beijing, China			2006	March, 07*		IPO Mkt
Rev ($mm)			$13	$11		Cap (mm)
Gross Profit %			75%	78%		$728
Profit (loss) $mm			-$4	$5.2		@$13
Profit (loss) %			-27.7%	46.0%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Perfect World (PWRD)	$728	16.1	35	6.2	6.2	21%
Compare & contrast
	Mrkt	Price /	Price /	Price /	Price /	Op earn
Compare & contrast	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	multiple
Perfect World (PWRD)	$728	16.1	35	6.2	6.2	34
Game operators
The9 Limited (NCTY)	$1,260	9.0	37	6.8	6.8	34
Shanda Interactive (SNDA)	$2,400	8.7	10	6.8	6.8	21
Game developer	July 16
Netease.com Inc. (NTES)	$2,300	8.3	15	5.6	5.6	14
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	3	2	1	8
ADS offering, five shares per ADS
MMORPG: a massively (or massive) multiplayer online role-playing game
Business
> A leading 3D online game developer and operator in China as measured by the popularity of games in
China in 2006, according to a report published by IDC.
> New business
. Began game development business in 2004, and launched first MMORPG, Perfect World, in January
2006
. Launched other three MMORPGs, Legend of Martial Arts, Perfect World II and Zhu Xian, in September
2006, November 2006 and May 2007
. In the first quarter of 2007, PWRD games recorded approximately 237,000 average concurrent users in
China.
Major Characteristics of the Online Game Market in China.
o Migration to 3D games.
There has been a noticeable trend towards development and operation of 3D online games in China.
Compared with 2D games, 3D settings and characters provide a more realistic representation of real-life
objects and can depict more complex activities and movement. 3D games with enhanced graphics are more
attractive to players, in particular MMORPG players.
o Increasing acceptance of the item-based revenue model.
The item-based revenue model is gaining wider market acceptance. While many of the older games use the
traditional time-based model, many of the newer games are being introduced with the item-based model.
Internet users are more likely to be attracted to playing item-based games since there is no initial charge to
play the game.
. The model also presents players with a personalized and differentiated service portfolio and increases the
ability of online game companies to generate higher revenues per customer.
. According to IDC, in 2006, more than 60% of online game revenues in China were generated from the
item-based model, compared to a very low percentage in 2005.
PWRD's game development platform
. Primarily develops 3D online games based on a proprietary Angelica 3D game engine and game
development platform
. PWRD's game development platform is built on modularized functions which allow PWRD to shorten the
development cycle of 3D MMORPGs to approximately six months for the most recent games and to update
our games frequently with new features.
Revenue models
> Time based
Used a time-based revenue model for the first game, Perfect World, under which players were charged
players based on the time they spend playing the game.
> Item based
. Used an item-based revenue model for Legend of Martial Arts, Perfect World II and Zhu Xian, under
which players can play the games for free, but are charged for purchases of in-game items, such as
performance-enhancing items, clothing, accessories and pets.
. In 2006 and the first quarter of 2007, 46.9% and 86.5%, respectively, of online game operation revenues
were generated through this item-based model.
Distribution
. Distributes physical and virtual prepaid game cards to players in China through a variety of channels,
consisting primarily of a network of 27 third-party distributors of our physical cards and one national
distributor of PWRD's virtual cards.
. Also sells online points through a proprietary E-sales system and the PWRD website.
Licensing
. Although most of revenues are generated in China, has licensed Perfect World II and Legend of Martial
Arts to leading game operators in 11 and seven countries and regions, respectively, including Japan and
Taiwan,
. Ad plans to license games to more countries and regions.
Factors affecting operating results - company specific factors
Including
. Number of online games available in the market, the popularity of PWRD's games, game items compared
with those of competitors,
. Pricing of games and in-game items, the speed at which PWRD develops and launches new online games
and related in-game items, growth of overseas licensing revenues
. Cost of developing, operating and marketing online games.
Online Game Operation Revenues
In 2006 and the first quarter of 2007, substantially all revenues were generated from online game
operations in China.
> First game
. Launched the first game, Perfect World, in January 2006, using the time-based revenue model, and 53.1%,
or RMB52.3 million (US$6.8 million), of online game operation revenues in 2006 were derived from this
game. With respect to games operated under the time-based model, the revenue growth will depend
primarily on the increase in the number of players and their playtime.
. Expects that revenues generated from games operated under the time-based model will decrease as a
percentage of online game operation revenues because PWRD began using the item-based model only in
September 2006 and plans to continue to use this model for new games.
> 2nd and 3rd games
. Launched our second and third games, Legend of Martial Arts and Perfect World II, in late September and
the end of November 2006, respectively, using the item-based revenue model.
. In 2006, 43.8%, or RMB43.1 million (US$5.6 million), and 3.1%, or RMB3.0 million (US$0.4 million),
of online game operation revenues were derived from Legend of Martial Arts and Perfect World II,
respectively.
> 4th game
. Will also adopt the item-based revenue model for the fourth game, Zhu Xian, which was launched in late
May 2007, and plans to adopt the item-based revenue model for all of new games that will be launched in
'2007 and early 2008.
> Item based revenue
With respect to games using the item-based revenue model, the revenue growth will depend primarily on
the increase in the number of players and the average spending of players.
. PWRD expects that revenues derived from games operated under the item-based model will continue to
increase as a percentage of total revenues in the foreseeable future.
> Two new MMORPG games
. PWRD targets to launch two new MMORPGs and a casual game in 2007 and early 2008.
Revenues
. In 2006, launched the first three games and generated revenues of RMB99.4 million (US$12.9 million).
. For the first quarter of 2007, generated revenues of RMB87.2 million (US$11.3 million).
. Expects that revenues will further increase in the near future, driven by the launch of additional games,
increasing monetization of games, and expansion of overseas licensing.
. Online game operation revenues are net of sales discounts and rebates to distributors, which historically
have averaged approximately 16.4% of the face value of prepaid game cards sold to our distributors.
Intellectual Property
. Includes trademarks, trade secrets and domain names in China and copyright and other rights associated
with our websites, game engine, technology platform, self-developed software and other aspects of our
business.
. Relies on trade secret protection, trademark and copyright law, non-competition and confidentiality
agreements with employees, and license agreements with partners, to protect intellectual property rights.
Competition
o online game developers in China, including NetEase, Kingsoft and ZTGame;
o online game operators in China, including Shanda and The9; and
o other competitors, including major Internet portal operators in China, and game developers and operators
in the overseas markets where PWRD offers its games.
Use of $106mm IPO proceeds from sale of 9mm ADSs
(shareholders intend to offer 2.8mm ADSs)
. Expand research and development efforts
. General corporate purposes, including capital expenditures and funding possible future acquisitions.
Tax Issues
> PRC EIT is generally assessed at the rate of 33% of taxable income. Under current PRC rules and
policies, an enterprise qualified both as a "software enterprise" and a "high and new technology enterprise"
is entitled to a preferential EIT rate of 15% and is further entitled to a two-year EIT exemption for the first
two years during which it has cumulative taxable income, and a 50% reduction of its applicable EIT rate for
the succeeding three years. In addition, an enterprise qualified as a "high and new technology enterprise"
located in the Beijing New Industry Development Pilot Zone is entitled to a preferential EIT rate of 15%
and is further entitled to a three-year EIT exemption from either its first year of operation or, if it is
incorporated in the second half of a calendar year, its second year of operation if so selected, and a 50%
reduction of its applicable EIT rate for the succeeding three years.
> PW Network is currently qualified both as a "software enterprise" and a "high and new technology
enterprise" in China and enjoying preferential tax treatments as a result of this status. PW Network did not
have any cumulative taxable income during the period from March 10, 2004 (date of inception to
December 2004 and for the years ended December 31, 2005 and 2006. We expect 2007 and 2008 to be the
first two years during which PW Network has cumulative taxable income. Therefore, PW Network is
expected to be exempted from EIT in 2007 and 2008 and be subject to a 7.5% EIT from 2009 to 2011.
> PW Software is currently qualified as a "high and new technology enterprise" located in the Beijing New
Industry Development Pilot Zone and enjoying preferential tax treatments as a result of this status. PW
Software was incorporated in the second half of 2006, and has elected to be exempted from EIT from 2007
and 2009 and be subject to a 7.5% EIT from 2010 to 2012. However, PW Software and PW Network's
qualifications are subject to an annual or biennial assessment by the relevant government authority in
China. There is no assurance that they will continue to meet the criteria to qualify as "software enterprises"
or "high and new technology enterprises" or that the relevant government authority will not revoke their
preferential tax treatments.
> On March 16, 2007, the National People's Congress of China enacted a new enterprise income tax law,
under which FIEs and domestic companies would be subject to EIT at a uniform rate of 25%. Preferential
tax treatments will continue to be granted to entities that are classified as "high and new technology
enterprises strongly supported by the State" or conduct business in encouraged sectors, whether FIEs or
domestic companies. The new tax law will become effective on January 1, 2008. Under the new tax law,
enterprises that were established and already enjoyed preferential tax treatments before March 16, 2007
will continue to enjoy them (i) in the case of preferential tax rates, for a period of five years from January 1,
2008, or (ii) in the case of preferential tax exemption or reduction for a specified term, until the expiration
of such term. Therefore, PW Network and PW Software will continue to be entitled to the preferential tax
treatments currently enjoyed by them during such transition period
===================
Rex Energy (REXX)	REXX, C+, 7
oil/gas drilling						Post-IPO shrs:31mm
State College, PA			2006	March, 07*		IPO Mkt
Revenue ($mm)			$63	$10		Cap (mm)
Operating income %			13.3%	-64.9%		$374
Net income $mm			$5	-$3.7		@$12
Profit (loss) %			8%	-38%
EBITDA			$28	$5.2
EBITDA %			45%	54%
				*March 31 quarter
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales*	Earnings*	BookValue	TangibleBV	in IPO
Rex Energy	$374	38.6	-101	1.6	1.6	47%
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
. Independent oil and gas company operating in the Illinois Basin, Appalachian Basin and southwestern
region of the United States.
. Pursues a balanced growth strategy of exploiting a sizeable inventory of lower risk developmental drilling
locations, pursuing higher potential exploration drilling prospects and actively executing an acquisition
strategy.
Results of operations
. During 2005 completed five significant acquisitions of producing properties, which impacted reserves,
revenues and operations over that realized in 2004.
. During 2006 completed four significant acquisitions, which substantially changed the magnitude of
operations and resulted in substantially increased production volumes, revenues and expenses over those
realized in 2005.
Competition
Major and independent oil and natural gas companies
Use of $102mm in IPO proceeds from sale of 9.2mm shares
(shareholders intend to sell 5.5mm shares for 66mm
Repay debt
===================
Validus Holdings, (VR)	VR, C+, 7
property catastrophe reinsurance						Post-IPO shrs:72mm
Hamilton, Bermuda			2006	March, 06*	March, 07*	IPO Mkt
Net written preimiums ($mm)			$477	$240	$347	Cap (mm)
Net income $mm			$183	$15.0	$57.0	$1,798
Profit (loss) %			38.4%	6.3%	16.4%	@$25
				*March 31 quarter
Talbot acquisition (see below)	2004	2005	2006
	$421	$446	$508
	$24	-$36	$123.0
Profit (loss) %	6%	-8%	24%

Combined Validus & Talbot			2006
Net written preimiums ($mm)			$985
Net income $mm			$306
Profit (loss) %			31.1%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales*	Earnings*	BookValue	TangibleBV	in IPO
Validus Holdings, (VR)	$1,798	1.8	6	1.1	1.2	22%
		*using combined Validus/Talbot results for the year ended Dec 31, 2006
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	Price
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	July 18
	Cap (mm)	Sales*	Earnings*	BookValue	TangibleBV	in IPO
Validus Holdings, (VR)	$1,798	1.8	6	1.1	1.2	22%
Greenlight Capital GLRE	$821	31.6	-16	1.6	1.6	$22.77
Flagstone Re (FSR)	$1,130	1.4	7.9	1.1	1.1	$13.28
Castlepoint (CPHL)	$556	2.6	19.7	1.4	1.5	$14.52
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7
Overall
There has been an absence of major catastrophe losses in 2006. This is a significant change from 2005
which was affected by hurricanes Katrina, Rita and Wilma during the third and fourth quarters of 2005
Dividend Policy
. Intends to pay quarterly cash dividends at an initial rate of $0.125 per share
. 2% initial annual payout rate
Business
. Formed in October, 2005, specialized Bermuda-based provider of reinsurance, conducting operations
worldwide
. Concentrates on first-party risks, which are property risks and other reinsurance lines commonly referred
to as short-tail in nature due to the brief period between the occurrence and payment of a claim.
. Management believes the supply and demand pressures which exerted upward pressure on prices in peak
U.S. property zones in 2006 will remain flat to slightly down in the near term.
Short-Tail Lines of Reinsurance
. Substantially all of the $670.7 million in gross premiums written for the twelve-month period ended
March 31, 2007 are in short-tail lines.
. VR believes based on industry data that rates for U.S. property catastrophe reinsurance in 2006 were at the
highest levels recorded as measured by rate on line, which is the premium paid by an insurer to a reinsurer
as a percentage of the reinsurer's exposure.
. There can be no assurance, however, that these favorable market conditions will continue to exist.
Current conditions
. VR notes that beginning with the January 2007 renewal season, there has been an increase in the amount
of available underwriting capacity for U.S. property catastrophe risks, and as a consequence, VR also noted
greater competition for participation in reinsurance programs.
. To date this has not adversely affected the rates VR receives for reinsurance for overall gross premiums
written , however, there can be no assurance that rates and premiums will not be affected in the future
. Furthermore, the State of Florida has instituted a law that, in part, increases the amount of reinsurance
available to primary insurers from the Florida Hurricane Catastrophe Fund.
. As a result, the amount of private market reinsurance required in Florida, where VR writes a significant
amount of business, may be reduced. This change in law could have a negative impact on VR's business.
Talbot Holdings acquisition
> Rates not increasing
Talbot has advised that rates at the January 1 renewals season showed a mixed pattern with some
classes, particularly those with catastrophe exposure, showing modest increases and others
"as before" or showing small decreases; and that at the whole account level the average rate change
across the portfolio shows a small reduction for business written in the 2007 year of account to date.
> Recently acquired
. On July 2, 2007, acquired all of the outstanding shares of Talbot Holdings Ltd.
. The Talbot Group is a leading underwriter of a wide range of marine and energy, war, political violence,
commercial property, financial institutions, contingency, bloodstock & livestock, accident & health and
treaty classes of business.
. Talbot is focused on writing commercial risks with a wide geographical spread and is a prominent leader
in the war and political violence classes.
. The Talbot Group underwrites at Lloyd's of London ("Lloyd's") through Syndicate 1183.
. In the year ended December 31, 2006, Talbot reported gross premiums written of $648.7 million. Net
income of the Talbot Group for the 2006 year was $123.8 million. The senior management of Talbot have
agreed to continue with Talbot following the acquisition.
. In June, 2007, issued $200.0 million in aggregate principal amount of junior subordinated deferrable
debentures due 2037. On July 2, 2007, VR made a draw upon its credit facility in the amount of $188.0 million
New Market Entrant
. One of the new reinsurance organizations that entered the market following the significant natural
catastrophes in 2005.
. As a result of a short operating history and the relatively low level of catastrophic events in 2006 and 2007
so far, has not experienced a high volume of claims to date.
. Claims arising from unpredictable and severe catastrophic events could adversely affect financial
condition or results of operations.
Operating results, March qtr, 2007 vs 2006
Net income for the three months ended March 31, 2007 was $56.7 million compared to $14.7 million for
the three months ended March 31, 2006, an increase of $42.0 million or 286.6%.
> The primary factors driving the increase were:
o An increase in gross premiums written of $129.9 million or 52.3%;
o The benefit of earning premiums in the three months ended March 31, 2007 that were written throughout
'2006;
o The relatively low level of catastrophic events in the three months ended March 31, 2007; and
o An increase in net investment income of $7.6 million or 69.5% as a result of growth in the investment
portfolio.
> The increases above were partially offset by the following factors:
o An increase in premiums ceded of $22.7 million or 275.8% due to the Petrel agreement;
o Increased losses and loss expenses and policy acquisition costs corresponding to the higher level of
premiums written and earned;
o An increase in general and administrative expenses of $5.5 million or 72.6% primarily resulting from an
increase in staff from 19 to 44; and
o Increased finance expenses resulting from $3.6 million interest and debt issuance costs on the Junior
Subordinated Deferrable Debentures.
Four brokers accounted for 88%
of the business for the quarter ended March 31, 2007
For the three months ended March 31, 2007, the business was primarily sourced from the following
brokers: Guy Carpenter & Co. (37.1%), Benfield Group Ltd. (18.4%), Willis Re Inc. (17.1%) and Aon Re
Inc. (15.1%)
Cyclical business
> The reinsurance industry has historically been cyclical.
. Reinsurers have experienced significant fluctuations in operating results due to competition, frequency of
occurrence or severity of catastrophic events, levels of underwriting capacity, underwriting results of
primary insurers, general economic conditions and other factors.
. The supply of reinsurance is related to prevailing prices, the level of insured losses and the level of
industry surplus which, in turn, may fluctuate, including in response to changes in rates of return on
investments being earned in the reinsurance industry.
> Pricing
. The reinsurance pricing cycle has historically been a market phenomenon, driven by supply and demand
rather than by the actual cost of coverage.
. The upward phase of a cycle is often triggered when a major event forces insurers and reinsurers to make
large claim payments, thereby drawing down capital. This, combined with increased demand for insurance
against the risk associated with the event, pushes prices upwards.
. Over time, insurers' and reinsurers' capital is replenished with the higher revenues. At the same time, new
entrants flock to the industry seeking a part of the profitable business. This combination prompts a long
slide in prices - the downward cycle - until a major insured event restarts the upward phase.
> As a result, the reinsurance business has been characterized by periods of intense competition on price
and policy terms due to excessive underwriting capacity
> Current favorable rates, right now relative shortages of capacity permit favorable premium rates and policy terms
and conditions
Private equity
. Formed in October 2005 by the initial investor, Aquiline Capital Partners LLC, a private equity firm
. Other sponsoring investors include private equity funds managed by Goldman Sachs Capital Partners,
Vestar Capital Partners, New Mountain Capital and Merrill Lynch Global Private Equity.
Use of $311mm in IPO proceeds from sale of 13.3mm shares
(shareholders intend to sell 2.25 mm shares for $56mm)
. $188.9 million of the net proceeds to repay borrowings and to pay accrued interest under unsecured credit
facility, incurred on July 2, 2007 to fund a portion of the cash purchase price for the acquisition of Talbot
and associated expenses
. Remainder of the net proceeds to further capitalize Validus Re to support the future growth of reinsurance
operations and for general corporate purposes, which will include a $3.0 million payment to Aquiline (the
founding investor, a private equity firm) in connection with the termination of an Advisory Agreement with
them.
===================
Voltaire Ltd.	VOLT, C+, 6
server/storage switching and software						Post-IPO shrs: 20.5mm
Herzeliya, Israel	2004	2005	2006	March, 06*	March, 07*	IPO Mkt
Rev ($mm)	$4.9	$15.4	$30.4	$4.4	$8.6	Cap (mm)
Gross Profit	28%	29%	37%	34%	37%	$267
Profit (loss) $mm	-$11.0	-$10.0	-$8.8	-$2.7	-$3.0	@$13
Profit (loss) %	-224%	-65%	-29%	-61%	-35%
				*quarter ended March 31
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Voltaire Ltd. (VOLT)	$267	7.7	22	3.2	3.2	38%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		1	2	2	1	6
Business
. Designs and develop server and storage switching and software solutions that enable high-performance
grid computing within the data center
. VOLT believes its Grid Backbone provides a scalable and cost-effective way for customers to manage the
growth of data center computing requirements.
InfiniBand based
. InfiniBand is an industry-standard architecture that provides specifications for high performance
interconnects.
. VOLT offers 24 to 288 port server and storage switches that benefit from the high performance and low
latency characteristics of the InfiniBand architecture, and also integrates with Ethernet and Fibre Channel
architectures.
Distribution & Sales
. Sells products primarily through server original equipment manufacturers, or OEMs, which incorporate
products into their solutions, as well as through value-added resellers and systems integrators.
. Currently has OEM relationships with International Business Machines Corporation, Hewlett-Packard
Company, Silicon Graphics, Inc., Sun Microsystems, Inc. and NEC Corporation, five of the top ten global
server vendors.
. To date, VOLT's solutions have been implemented in the data centers of over 250 end customers across a
wide range of vertical markets and geographies. We outsource the manufacture of our products to two
contract manufacturers.
. Switch products accounted for approximately 54% of revenues in 2006.
Intellectual property
. As of June 30, 2007, had one issued U.S. patent and five pending patent applications in the United States.
. Also has four pending counterpart application outside of the United States, filed pursuant to the Patent
Cooperation Treaty.
Competition
. Current principal competitors are Cisco Systems, Inc. and QLogic Corporation.
. Competes to a lesser degree against providers of 10 Gigabit Ethernet and proprietary high-performance
computing solutions.
Use of $67.5mm in IPO proceeds from sale of 5.8 shares
(shareholders intend to sell 1.9mm shares for $25mm)
. Repay $5mm of debt
. Fesearch and development activities, expand business development and marketing activities, and for
general corporate purposes and working capital
===================
Financial Performance & Scoring -- © 2007 Gaskins IPO Desktop/IPOdesktop
Pre-IPO analysis, grading & scoring -- updated July 13
. 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
===================
July 16 week IPO schedule
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO

Airvana (AIRV)	$571	475.5	-7.6	-34.2	-20.5	13%
infrastructure for mobile broadband: B-, 9						Post-IPO shrs: 63mm

Dice Holdings (DHX)	$744	6.0	98	7.3	-4.9	27%
tech/fin career websites: B-, 8			pro-forma			Post-IPO shrs: 62m

Encore Banc (EBTX)	$206	6.7	29	1.9	1.9	20%
bank hldg, Texas & Florida: C+, 7						Post-IPO shrs: 9.8mm

hhgregg (HGG)	$506	0.5	19	11.5	11.5	30%
retail video/audio/appliances/etc: C+, 7						Post-IPO shrs: 32mm

ImaRX Thera (IMRX)	$63	13.1	-7	2.9	3.3	33%
therapies for blood clots: C, 6						Post-IPO shrs: 9mm

Limco-Piedmont (LIMC)	$131	4.3	18	2.6	2.9	32%
aerospace maintenace, overall, services: C+, 6						Post-IPO shrs:12.5mm

MF Global Ltd. (MF)	$4,488	3.3	39	3.7	4.9	80%
broker of exchange-listed futures/options: C+, 8						Post-IPO shrs:121.3m

Netezza (NZ)	$556	5.6	-73	5.7	5.7	16%
data warehouses: B-, 8						Post-IPO shrs: 56mm

Orbitz Worldwide (OWW)	$1,409	1.7	-25	2.0	-1.6	41%
online travel: C+, 7						Post-IPO shrs:89mm

SemGroup , L.P. (SGLP)	$513	4.8	17	-17.7	-17.7	49%
crude oil midstream services: C+, 7						Post-IPO shrs:26mm
===================
SEARCH BY COMPANY		In your browser use 'Edit/Find' to search for companies
or ticker for analysis		scheduled below
===================
July 16wk financials, analysis, grading, scoring
Airvana	AIRV, B-, 9
infrastructure for mobile broadband						Post-IPO shrs: 63mm
Chelmsford, MA	2004	2005	2006	March, 06*	March, 07*	IPO Mkt
Rev ($mm)	$3.6	$2.3	$170	$0.2	$0.3	Cap (mm)
Profit (loss) $mm	-$30	-$56	$57	-$16.0	-$18.8	$571
Profit (loss) %	-833%	-2417%	34%	-9877%	-6989%	@$9
				*quarter ended March 31
	2005	2005	2006	March, 06*	March, 07*
Products & Services ($mm)	$3.6	$2.3	$170	$18.8	$41.5
Associated cost %	27%	29%	9%	31%	4%
Deferred revenue, period end	$118	$273	$243	$292	$284
Cash flow from operations	$43.0	$67.0	$25	($5.6)	$61.2
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Airvana (AIRV)	$571	475.5	-7.6	-34.2	-20.5	13%
		Price /	Price /
Product Service multiple		Product	CashFlow
Cash flow multiple		Ser Rev
Airvana (AIRV)		3.4	2.3
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	3	2	2	9
Products & services revenue
AIRV believes "product and service billings" represent the best way to track financial progress
"Product and service billings represents amounts invoiced for products and services delivered and services
to be delivered to our customers for which payment is expected to be made in accordance with normal
payment terms."
Deferred Revenue
"Product and service billings for invoiced shipments and software license fees, and related maintenance
services for which revenue is not recognized in the current period are recorded as deferred revenue.
Deferred revenue increases each fiscal period by the amount of product and service billings that are
deferred in the period and decreases by the amount of revenue recognized in the period. We classify
deferred revenue that we expect to recognize during the next twelve months as current deferred revenue on
our balance sheet and the remainder as long-term deferred revenue. $284.5 million of deferred revenue is
included in current liabilities and $0.1 million of deferred revenue is included in long-term liabilities at
April 1, 2007."
Business
.. A leading provider of network infrastructure products used by wireless operators to provide mobile
broadband services. Founded in March 2000 and sold the first product in the second quarter of fiscal 2002.
. Software and hardware products, which are based on Internet Protocol, or IP, technology, enable wireless
networks to deliver broadband-quality multimedia services to mobile phones, laptop computers and other
mobile devices.
. These services include Internet access, e-mail, music downloads, video, IP-TV, gaming, push-to-talk
and voice-over-IP, or VoIP.
. Broadband multimedia services are growing rapidly as business users and consumers increasingly use
mobile devices to work, communicate, play music and video, and access the Internet.
Recent development
. On April 30, 2007, acquired 3Way Networks Limited, a United Kingdom-based provider of personal base
stations and solutions for the UMTS market, for an aggregate purchase price of approximately $11.0
million in cash and 441,845 shares of common stock.
. The acquisition furthers AIRV's strategy to address the UMTS market and to deliver fixed-mobile
convergence and in-building mobile broadband solutions.
UMTS: Universal Mobile Telecommunications System) The European implementation of the 3G wireless
phone system. Part of IMT-2000, UMTS provides service in the 2GHz band and offers global roaming and
personalized features. Designed as an evolutionary system for GSM carriers, UMTS embraces the
WCDMA technology.
Expertise in three technologies
. Wireless communications, IP and broadband networking.
. IP technology is the foundation of our solutions.
. AIRV products have advantages over products based on circuit-switched or legacy communication
protocols.
Current Products
. Current mobile broadband network products are based on a wireless communications standard called
CDMA2000 1xEV-DO, or EV-DO.
. In 2002, we began delivering products based on the first generation EV-DO standard known as Revision
0, or Rev 0, which has been deployed throughout the networks of many wireless operators.
. Next version of software is based on the second generation EV-DO standard known as Revision A, or Rev
A, which provides increased data speeds and supports push-to-talk and VoIP.
. Certain major wireless operators are currently deploying this new, faster technology in their networks.
New products
Developing new products to address the markets for fixed-mobile convergence, or FMC, and in-building
mobile broadband services.
. Recently began trials of the first FMC product.
. AIRV's FMC products will enable operators to take advantage of wireline broadband connections that
already exist in most offices and homes to deliver wireless services through a combination of mobile and
Wi-Fi networks.
. AIRV's FMC products under development include versions to support CDMA, UMTS and WiMAX
networks.
. AIRV will also utilize its mobile broadband technology and products in specialized applications, such as
military and public safety communications, that require their own mobile networks.
Customers and distribution
Sells EV-DO products primarily through an original equipment manufacturer, or OEM, agreement with
Nortel Networks.
. Through Nortel Networks, has sold EV-DO product licenses for use by over 30 operators worldwide,
including Alltel, Bell Mobility, Sprint Nextel, Telefonica, Telus and Verizon Wireless.
. Also, has entered into OEM agreements with Alcatel-Lucent to develop and sell additional EV-DO
products and with Qualcomm to sell EV-DO systems.
OEM relationships
Collaborates with OEM customers to develop and negotiate pricing for specific features for future product
releases and specified software upgrades.
. Because AIRV does not sell the same products and upgrades to more than one customer, AIRV is unable
to establish fair value for these products and upgrades.
. As a result, is required to defer most of revenue from sales to OEM customers until AIRV ships specified
upgrades that were committed to the OEM customer at the time of sale.
. Because of this deferral, AIRV believes that product and service billings are a better reflection of our sales
activity in any period.
R&D
. AIRV's research and development team is comprised of approximately 400 engineers
. AIRV has spent over $195.0 million on the development of products over the past seven years.
Intellectual property
As of April 30, 2007, had issued 6 patents and had 50 patent applications pending in the United States and
16 patent applications pending in foreign jurisdictions.
Competition
The nature of competition varies by product.
> For EV-DO products, AIRV faces competition from several of the world's largest telecommunications
equipment providers that offer either a directly competitive product or a product based on alternative
technologies. Competitors include Alcatel-Lucent, Hitachi, Huawei, LG-Nortel and Samsung.
> In sales to OEM customers, AIRV faces the competitive risk that OEMs might seek to develop in-house
alternative solutions to those currently licensed from us. Additionally, OEMs might elect to source
technology from competitors.
> The market for FMC solutions is in its infancy.
. Expects to encounter competition from products already on the market, as well as new products to be
developed.
. Competition includes several public companies, including Cisco and Ericsson, as well as several private
companies.
> In the air-to-ground market, the competitive environment is less developed but, as the market grows,
AIRV believes the competitive pressures in this market may increase.
Use of $65mm in IPO proceeds
Working capital and general corporate purposes, primarily to fund research and development activities
related to AIRV's EV-DO and FMC products and to fund the further expansion of sales and marketing
functions, primarily outside the United States.
===================
Dice Holdings	DHX, B-, 8
tech/fin career websites			pro-forma			Post-IPO shrs: 62m
New York, NY			2006	March, 07*		IPO Mkt
Rev ($mm)			$102	$31		Cap (mm)
Gross Profit %			94%	94%		$744
Operating income %			10%	14%		@$12
Interest % of revenue			17%	13%
Income tax benefit % of rev			2%	6%
Profit (loss) $mm			-$4	$1.9
Profit (loss) %			-3.5%	6.2%
Adjusted EBITDA			$37	$11
Adjusted EBITDA % of revenue			35.9%	37.4%
Deferred revenue			$35	$42
Deferred revenue % of revenue			33.8%	138.7%
. Deferred revenue reflects our increased ability to sign customers to long-term contracts.
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Dice Holdings (DHX)	$744	6.0	98	7.3	-4.9	27%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	3	2	1	8
Deferred revenue
. "Deferred revenue is a key metric of our business as it indicates a level of sales already made that will be
recognized as revenue in the future. Deferred revenue reflects our increased ability to sign customers to
long-term contracts.
. We recorded deferred revenue of $16.1 million on our consolidated balance sheet, as
of August 31, 2005, prior to purchase accounting adjustments related to the 2005 Acquisition. As required
by generally accepted accounting principles in the United States, or "U.S. GAAP," in determining the fair
value of the liabilities assumed under purchase accounting, the acquired deferred revenue is to be recorded
at fair value to the extent it represents an assumed legal obligation.
. We estimated our obligation related to
deferred revenue as a result of the 2005 Acquisition using the cost build-up approach which determines fair
value by estimating the costs related to fulfilling the obligation plus a normal profit margin. The estimated
costs to fulfill our deferred revenue obligation in connection with the 2005 Acquisition were based on our
expected future costs to fulfill our obligation to our customers. As a result, we recorded an adjustment to
reduce the carrying value of deferred revenue by $6.0 million, to $10.1 million.
. The reduction negatively
impacted revenues by $3.6 million and $2.1 million for the periods ended December 31, 2005 and 2006,
respectively. Similarly, we recorded deferred revenue for eFinancialGroup at the date of the acquisition of
$3.6 million, prior to purchase accounting adjustments. We estimated our obligation related to deferred
revenue based on future costs to fulfill our obligation to our customers.
. As a result, we recorded an
adjustment to reduce the carrying value of deferred revenue for eFinancialGroup by $2.4 million, to $1.2
million.
. The reduction negatively impacted revenues by $918,000 and $758,000 during the year ended
December 31, 2006 and three months ended March 31, 2007, respectively."
Business
. A leading provider of specialized career websites for select professional communities.
. Targets employment categories in which there is a scarcity of highly skilled, highly qualified professionals
relative to market demand.
. At March 31, 2007, Dice.com had approximately 8,500 total recruitment package customers and our other
websites collectively served over 2,500 customers,
Career web sites
. Serve as online marketplaces where employers and recruiters find and recruit prospective employees, and
where professionals find relevant job opportunities and information to further their careers.
. Each career website offers job listings, content, career development and recruiting services tailored to the
specific needs of the professional community that it serves.
Largest web sites by revenue are
. Dice.com, the leading career web site in the United States for technology professionals, and
. eFinancialCareers.com, the leading global career website for capital markets and financial services
professionals.
Key trend for DXH
Increased adoption of DHX-services by direct employers, staffing companies and recruiting firms that seek
to recruit, place, or hire professionals in the communities DHX serves
The industry
. The worldwide market for staffing and employment advertising is large and shifting online at a rapid pace.
Corzen, Inc. ("Corzen") estimates that recruitment advertising, comprising spending on print recruitment
advertising placed in newspapers and online recruitment advertising and resume database access, in the
U.S. market was $6.9 billion in 2006, with $2.2 billion spent online.
. Corzen forecasts that online recruitment spending will increase to $4.5 billion by 2010, and continue to
rapidly gain market share from print recruitment advertising.
Industry trends
. DHX believes that the overall demand for employment advertising and recruiting and career development
products and services has significant growth potential.
. Over the next several years, the aging labor force of the United States is expected to lead to a labor
supply-demand imbalance as baby-boomers retire.
. According to the U.S. Bureau of Labor Statistics, a shortfall of over two million workers in the labor force
is forecast by 2014.
Tech includes 5 of 12 fastest-growing
. According to the U.S. Bureau of Labor Statistics, for instance, five of the 12 fastest-growing occupations
in the United States during the period from 2004 to 2014 are expected to be in technology fields.
. DHX believes that international economies show similar trends, with an aging labor force in Europe, and
shortages of skilled professionals to meet the demand of growing economies in Asia.
DHX web sites focus on different career sectors or geographic regions:
o Dice.com, the leading recruiting and career development website for technology and engineering
professionals in the United States. During April 2007, Dice.com had approximately 2.1 million unique
visitors, an increase of 19% since April 2006, and as of May 9, 2007, approximately 100,000 job postings.
o eFinancialCareers.com, the leading global recruiting and career development network of websites for
capital markets and financial services professionals, headquartered in the United Kingdom and serving the
financial services industry in various markets around the world. During April 2007, eFinancialCareers.com
had approximately 1.2 million unique visitors worldwide, including visitors who came to more than one
site in the network during the month, an increase of 46% since April 2006, and as of May 9, 2007,
approximately 11,000 job postings.
o JobsintheMoney.com, a leading recruiting and career development website for accounting and finance
professionals in the United States. During April 2007, JobsintheMoney.com had approximately 220,000
unique visitors, an increase of 11% since April 2006, and as of May 9, 2007, approximately 2,000 job
postings.
o ClearanceJobs.com, the leading recruiting and career development website for professionals with active
U.S. government security clearances. During April 2007, ClearanceJobs.com had approximately 109,000
unique visitors, an increase of over 60% since April 2006, and as of May 9, 2007, approximately 3,800 job
postings.
o CybermediaDice.com, the largest targeted vertical career website for technology professionals in India.
During April 2007, CybermediaDice.com had approximately 110,000 unique visitors, and as of May 9,
2007, approximately 13,000 job postings. DHX owns 51% of CybermediaDice.com, a joint venture with
CyberMedia Limited, one of South Asia's largest specialist media publishers.
Competition
The market for recruiting services and employment advertising is highly competitive with multiple online
and offline competitors.
o generalist job boards, some of which have substantially greater resources and brand recognition than
DHX do, such as Monster.com, Hotjobs.com (owned by Yahoo!), and CareerBuilder (owned by Gannett,
Tribune and McClatchy), which, unlike specialized job boards, permit customers to enter into a single
contract to find professionals across multiple occupational categories and attempt to fill all their hiring
needs through a single website;
o newspaper and magazine publishers, national and regional advertising agencies, executive search firms
and search and selection firms that carry classified advertising, many of whom have developed, begun
developing or acquired new media capabilities such as recruitment websites, or have recently partnered
with generalist job boards;
o specialized job boards focused specifically on the industries we service, such as ComputerJobs.com,
JustTechJobs.com and CareerBank.com; and
o new and emerging competitors, such as aggregators of classified advertising, including SimplyHired,
Indeed and Google; Craigslist; and social networking sites, such as LinkedIn.
History
. Through predecessors, has been in the technology recruiting and career development business for 16
years.
. In 1999, the Dice service was acquired by Earthweb Inc., an Internet technology content provider, which
at the time of the acquisition was a publicly held company with its common stock traded on the Nasdaq
National Market.
. During 2000, Earthweb Inc. (which subsequently changed its name to Dice Inc.) made a strategic decision
to focus on technology recruiting and career development and exited the technology content-based
business.
. From its inception through 2003, Dice sustained net operating losses and negative cash flows and during
that period was primarily dependent upon its ability to raise debt and equity financing through public or
private offerings in order to fund its operations.
. In addition, beginning in 2001, Dice's liquidity issues worsened as a result of a decline in the demand for
Dice's products and services stemming from the downturn in the general labor market and more
specifically in the technology labor market and due to the significant amount of indebtedness Dice's
predecessor had incurred.
. As a result, Dice began pursuing discussions with the largest holder of Dice's then outstanding debt
securities regarding a pre-packaged Chapter 11 plan of reorganization under the United States Bankruptcy
Code.
> Out of bankruptcy
. Incorporated in Delaware on June 28, 2005, but through predecessors have been in the technology
recruiting and career development business since 1991.
. On February 14, 2003, predecessor, Dice Inc., filed a voluntary petition for bankruptcy under Chapter 11
of the United States Bankruptcy Code. At that time, Dice Inc. was a publicly held company and its common
stock was traded on the Nasdaq National Market until it was de-listed.
. Dice Inc.'s plan of reorganization became effective on June 30, 2003 and Dice Inc. emerged from
bankruptcy as a privately-held company.
> Private equity owners
. On August 31, 2005, the Principal Stockholders acquired all outstanding equity in connection with the
acquisition of Dice Inc. from its stockholders
. Currently, the Principal Stockholders beneficially own in the aggregate approximately 92% of the
outstanding shares of our Series A convertible preferred stock and all of our outstanding common stock
. Upon completion of this offering, the Principal Stockholders will beneficially own approximately
41,510,174 shares of common stock or 67% (39,588,476 shares of our common stock, or 64%, if the
underwriters exercise their over-allotment option in full)
Recent acquisition
. On October 31, 2006, Dice Holdings, Inc. acquired all of the outstanding capital stock of
eFinancialGroup. eFinancialGroup operated the career websites eFinancialCareers.com, which targets
capital markets and financial services professionals and employers worldwide, and JobsintheMoney.com,
which targets the financial and accounting job market in the United States, and a financial publishing
business, eFinancialNews.
. DHX paid the stockholders of eFinancialGroup £56.5 million (or $106.3 million at the exchange rate in
effect on October 31, 2006) in cash and issued 3,628,992 shares of its Series A convertible preferred stock
valued at $25.2 million.
. Immediately after the acquisition, Dice Holdings, Inc. sold eFinancialNews back to certain of
eFinancialGroup's former stockholders for approximately $41.6 million in cash.
. Operating results of eFinancialGroup and JobsintheMoney occurring subsequent to the eFinancialGroup
Acquisition are included in the consolidated operating results of Dice Holdings, Inc.
. Total consideration for eFinancialGroup, excluding eFinancialNews, was $89.9 million (which amount
includes the value of 3,628,992 shares of the Series A convertible preferred stock of Dice Holdings, Inc.
issued as partial consideration for the eFinancialGroup Acquisition).
Principal Stockholders
. General Atlantic LLC, or "General Atlantic," is a leading global private equity firm providing capital for
innovative companies where information technology or intellectual property is a key driver of growth. The
firm was founded in 1980 and has approximately $12 billion in capital under management. General
Atlantic has invested in over 160 companies, including us. General Atlantic has offices in Greenwich, New
York, Palo Alto, London, Düsseldorf, Mumbai and Hong Kong.
. Quadrangle Group LLC, or "Quadrangle," is a private investment firm with over $5 billion in assets under
management. Quadrangle invests in media and communications companies through separate private and
public investment strategies and in debt securities across all industries through a debt investment program.
Quadrangle Capital Partners, its private equity business, invests in media and communications companies
in partnership with superior management and where it believes its experience, relationships and capital can
create long-term value. Quadrangle has offices in New York and London.
Recent cash dividends -- $124mm
. On October 27, 2006, paid a cash dividend of approximately $11.2 million in the aggregate, or $0.22 per
share, to holders of Series A convertible preferred stock.
. On March 23, 2007, paid a cash dividend of approximately $107.9 million in the aggregate, or $1.95 per
share, to holders of our common stock and Series A convertible preferred stock and
. Made a payment of $4.6 million in the aggregate, or $1.95 per vested option, to holders of vested stock
options in lieu of a dividend.
Use of $72.3mm in IPO proceeds from sale of 6.7mm shares
(shareholders intend to sell 10mm shares)
. $32.0 million to repay the debt
. remaining proceeds for working capital and general corporate purposes
===================
Encore Bancshares	EBTX, C+, 7
bank hldg, Texas & Florida						Post-IPO shrs: 9.8mm
Houston, TX	2004	2005	2006	March, 06*	March, 07*	IPO Mkt
Net interest inc ($mm)	$24.0	$26.3	$30.2	$7.5	$7.7	Cap (mm)
Profit (loss) $mm	$7	$5	$8	$2.3	$1.8	$206
Profit (loss) %	28.8%	18.3%	24.8%	30.7%	23.4%	@$21
				*quarter ended March 31
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Encore Banc (EBTX)	$206	6.7	29	1.9	1.9	20%
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
. Encore Bancshares, Inc. is a bank holding company and wealth management organization that provides
banking, investment management, financial planning and insurance services to professional firms,
privately-owned businesses, investors and affluent individuals.
. Headquartered in Houston, Texas and currently manage, through the primary subsidiary Encore Bank,
N.A., 11 private client offices in the greater Houston market and six private client offices and two loan
production offices in southwest Florida.
. Also operates five wealth management offices and three insurance offices in Texas.
. As of March 31, 2007, reported, on a consolidated basis, total assets of $1.3 billion, total loans of $932.8
million, total deposits of $997.3 million, shareholders' equity of $108.9 million and $2.6 billion of assets
under management.
Competition
. Profitability depends principally on the ability to compete in the market areas in which EBTX is located
. The primary factors encountered in competing for deposits are convenient office locations and rates
offered
Use of $36mm in IPO proceeds
o to support anticipated balance sheet growth, including contributions to the capital of Encore Bank;
o for possible future acquisitions; and
o for general corporate purposes.
===================
hhgregg	HGG, C+, 7
retail video/audio/appliances/etc			March 31 fiscal year			Post-IPO shrs: 32mm
Indianapolis, IN		2005	2006	2007*		IPO Mkt
Revenue ($mm)		$803.0	$900.0	$1,059.0		Cap (mm)
Gross profit		31.8%	31.6%	31.1%		$506
Profit (loss) $mm		$29	$22	$27		@$16
Profit (loss) %		3.6%	2.5%	2.5%
				*proforma
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
hhgregg (HGG)	$506	0.5	19	11.5	11.5	30%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7
Recent development
. For the fiscal quarter ended June 30, 2007, net sales were $254.2 million compared to $203.2 million for
the quarter ended June 30, 2006.
. This 25.0% growth in net sales was driven primarily by the addition of 10 stores since the fiscal quarter
ended June 30, 2006 and comparable store sales growth of 8.8% during the fiscal quarter ended June 30,
2007
. The comparable store sales growth was driven by strong increases in both video and appliance categories.
. For the quarter ended June 30, 2007, comparable store sales growth in the video category was 9.5%,
driven by growth in flat panel televisions, and 6.9% in our appliance category, driven by strength in
laundry and cooking appliances.
> Margins
Expects gross profit margin and income from operations, expressed as a percentage of sales, for the quarter
ended June 30, 2007 to exceed the gross profit margin and income from operations, expressed as a
percentage of sales, for the quarter ended June 30, 2006.
Business
. Specialty retailer of premium video products, brand name appliances, audio products and accessories.
. Currently operates 79 stores in Ohio, Indiana, Georgia, Tennessee, Kentucky, North Carolina, South
Carolina and Alabama.
. Typical store averages 30,000 square feet and is designed to be visually appealing to customers and to
highlight a premium selection of consumer electronics and appliances
. Over the last four fiscal years, opened 31 new stores and grew net sales and Adjusted EBITDA (a non
-GAAP financial measure) at a compound annual rate of 12.0% and 19.1%, respectively, while
significantly investing in corporate infrastructure to support further expansion.
. For the fiscal year ended March 31, 2007, we generated net sales of $1.1 billion and Adjusted EBITDA (a
non-GAAP financial measure) of $65.5 million, representing growth of 17.7% and 46.8%, respectively,
over the prior fiscal year.
Store economics
. During fiscal 2006 and 2007, stores averaged net sales of $14.4 million and provided an average four-wall
EBITDA margin (a non-GAAP financial measure) of approximately 8.0%.
. During this same period, our new stores required average net capital expenditures of $0.7 million and
average initial net-owned inventory investments of $1.0 million.
. Stores typically generate positive cash flow within three months of opening and provide a cash payback in
less than two years.
Growth plan
. In fiscal 2008, plans to open approximately 13 to 15 new stores, primarily by entering the
Raleigh/Durham and Birmingham markets and
. In fiscal 2009, intends to enter the highly attractive Florida market.
. Over the next several years intends to continue to grow the store count from internally generated funds at
a compound annual rate of approximately 15% to 18%.
. HGG believes, based upon new-store site selection criteria, that there are substantial opportunities to add
stores in new and existing markets with a long-term potential for more than 400 hhgregg stores in the
United States
Recapitalization
. Recapitalized Gregg Appliances on February 3, 2005 to provide liquidity for certain existing stockholders
and to help us achieve our long-term growth objectives by partnering with a private equity firm with
expertise in assisting retail companies to execute their growth strategies and to provide us with access to
additional capital if required to support our growth.
. As part of the recapitalization, a wholly owned subsidiary of GIC, an entity formed by an affiliate of
Freeman Spogli, merged with and into Gregg Appliances and GIC acquired $111.2 million of equity of
Gregg Appliances.
. In connection with the recapitalization, total consideration of approximately $286.4 million was paid to
the then existing equity holders of Gregg Appliances.
. As part of the consideration, Gregg Appliances issued to certain stockholders $25.0 million principal
amount of junior notes, which will be redeemed as required by their terms with the proceeds of this
offering.
. Three management stockholders retained a portion of the common stock of Gregg Appliances held by
them before the recapitalization.
> Freeman Spogli is a private equity firm dedicated to investing and partnering with management in
companies in the retailing, direct marketing and distribution industries in the United States. Since its
founding in 1983, Freeman Spogli has invested approximately $2.4 billion of equity in 41 portfolio
companies with aggregate transaction values in excess of $16.0 billion.
Competition
. Competes against Best Buy, Circuit City, Sears, Lowe's and Home Depot in the vast majority of markets.
. Also competes against regional retailers, such as Fry's and BrandsMart, in several of our markets.
. Has achieved a leading market position in digital televisions and major appliances in the majority of
markets.
Use of $43.5mm in IPO proceeds from sale of 3.125mm shares
(shareholders intent to sell 6.25mm shares)
Intends to use the net proceeds from this offering, together with cash on hand and borrowings under new
credit facilities, to
(i) redeem $25.0 million in aggregate principal amount of junior notes pursuant to their terms and
(ii) pay a portion of the purchase price of the $111.2 million aggregate principal amount of outstanding
senior notes pursuant to the tender offer commenced on June 26, 2007. The junior notes and the senior
notes accrue interest at 6% and 9%, respectively, and have a maturity date of February 3, 2015 and
February 1, 2013, respectively.
===================
ImaRX Therapeutics	IMRX, C, 6
therapies for blood clots						Post-IPO shrs: 9mm
Tuscon, AZ		2004	2005	2006	March qtr	IPO Mkt
Rev ($mm)		$0.6	$0.6	$1.3	$1.2	Cap (mm)
Income/loss ($mm)		-$5.7	-$28.0	-$0.7	-$2.4	$63
Income/loss %		-950%	-4667%	-54%	-200%	@$7
Note: 2005 results include $24mm in acquired in-process R&D
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
ImaRX Thera (IMRX)	$63	13.1	-7	2.9	3.3	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
Note: graded C+ because of near term revenue expectations, see below
Business
. Innovative therapies for vascular disorders associated with blood clots.
. Development and commercialization efforts are primarily focused on therapies for treating
ischemic stroke and massive pulmonary embolism, respectively, by restoring the flow of blood
and oxygen to the brain and vital tissues.
Near term revenue
. Abbokinase, a form of urokinase that is approved and marketed for the treatment of acute
massive pulmonary embolism. IMRX started to sell Abbokinase in the second half of
2006. Abbokinase sales will provide near-term revenue, an opportunity to form sales relationships
with vascular physicians and acute care institutions that regularly administer blood clot therapies
and a commercialization infrastructure that we believe can grow to support future products.
Product pipeline
. PROLYSE is a recombinant pro-urokinase, or a pro-drug form of urokinase that IMRX believes,
based on a number of published third-party scientific studies, does not become active until it
reaches a blood clot, which may reduce the risk of bleeding. PROLYSE has been shown, in a
Phase 3 clinical trial of 180 patients conducted by Abbott Laboratories between 1996 and 1998, to
be well tolerated and to demonstrate activity in dissolving cerebral blood clots when administered
as long as six hours after the onset of stroke symptoms
. SonoLysis combination therapy is the combination of SonoLysis bubbles and ultrasound in
conjunction with a thrombolytic. IMRX believes that SonoLysis combination therapy incorporates
complementary mechanisms of action that will both reduce the time required to dissolve a blood
clot and enable a lower dose of thrombolytic to be used. In addition, we believe a lower dose of
thrombolytic will reduce the risk of bleeding and extend the current treatment window beyond that
of a thrombolytic alone for ischemic stroke patients. IMRX has an open Investigational New Drug
application, or IND, and expects to initiate a Phase 1/2 dose-escalation clinical trial in the second
half of 2006 using SonoLysis bubbles, ultrasound and tPA to expand upon the prior work of
academic investigators in this area.
. Open-Cath-R, another form of urokinase acquired in 2005, has been shown in two Phase 3
multinational clinical trials conducted by Abbott Laboratories prior to 2003 to be well tolerated
and active as a treatment for clearing blocked intravascular catheters. IMRX is investigating the
remaining regulatory and manufacturing requirements and the opportunity to license Open-Cath-R
to a third party.
Acquired R&D in process
. IMRX acquired PROLYSE, Open-Cath-R and Abbokinase from Abbott Laboratories. In
connection with these acquisitions, issued a $15.0 million promissory note that matures in
December 2006 and another $15.0 million promissory note that matures in December 2007.
. If IMRX is unable to satisfy these debt obligations when due, Abbott Laboratories will have a
right to reclaim the acquired assets and rights
Competition
There are two principal groups of competitors offering treatments to break up or remove blood
clots, thrombolytic companies and vendors of mechanical thrombectomy or similar devices.
Thrombolytic Competitors
. The U.S. market for thrombolytics is dominated by Genentech, Inc., which manufactures tPA,
the most widely used thrombolytic.
. IMRX is not a significant competitor in the sale of thrombolytics, because IMRX recently
acquired its only approved product, Abbokinase, which is approved by the FDA for treatment of
acute massive pulmonary embolism.
. Genentech’s tPA in various formulations is currently the only thrombolytic that has been
approved by the FDA for treatment of ischemic stroke and catheter occlusion clearance, and is
also approved for myocardial infarction and pulmonary embolism indications.
. IMRX is aware that other thrombolytics are also under development, such as alfimeprase and
desmoteplase. Alfimeprase is a recombinant form of a derivative of copperhead snake venom
being developed by Nuvelo, Inc. and is in clinical trials for use in catheter occlusion clearance and
peripheral arterial occlusions, with clinical trials planned for ischemic stroke and deep vein
thrombosis indications.
. Desmoteplase is a recombinant form of a derivative of vampire bat saliva being developed by
PAION AG that is currently in Phase 3 clinical trials for treatment of ischemic stroke.
. Other companies also offer or are developing thrombolytics for treatment of blood clots
associated with myocardial infarction and peripheral vascular occlusions.
. IMRX does not consider those product offerings or programs to be competitive with our current
business strategy.
Device Competitors
. IMRX believes that the primary device-based treatment for ischemic stroke clots on the market is
the MERCI (Mechanical Embolus Removal in Cerebral Ischemia) Retriever, which is an
intravascular catheter-based therapy marketed by Concentric Medical, Inc. This device is used to
engage the clot and retract it through the catheter and out of the body.
. Mechanical thrombectomy devices are also approved and marketed for removing blood clots
associated with peripheral vascular and coronary indications and dialysis access grafts, such as
AngioJet by Possis Medical, Inc., Micro-Infusion Catheter by EKOS Corp., and Resolution
Endovascular System by OmniSonics Medical Technologies, Inc.
. A variety of companies also offer catheter-delivery systems for thrombolytics or other drugs used
in the treatment of blood clots.
. IMRX does not consider these devices to be directly competitive with its current business
strategy.
Use of $18mm in IPO proceeds
Development and commercialization
===================
Limco-Piedmont	LIMC, C+, 6
aerospace maintenace, overall, services						Post-IPO shrs:12.5mm
Tulsa, OK	2004	2005	2006	March, 06*	March, 07*	IPO Mkt
Rev ($mm)	$14.0	$31.6	$89.0	$12.2	$20.0	Cap (mm)
Operating inc %	10.0%	10.1%	12.4%	13.1%	12.0%	$131
Profit (loss) $mm	$1	$2	$4	$0.9	$1.4	@$10.5
Profit (loss) %	7.1%	6.0%	4.8%	7.4%	7.0%
				*quarter ended March 31
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Limco-Piedmont (LIMC)	$131	4.3	18	2.6	2.9	32%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	1	1	6
Wholly-owned subsidiary
Of TAT Technologies Ltd. (TATTF), based in Israel, market cap of $132mm, $40mm book value
Business
. Maintenance, repair and overhaul, or MRO, services and parts supply services to the aerospace industry
. Four Federal Aviation Administration, or FAA, certified repair stations provide aircraft component MRO
services for airlines, air cargo carriers, maintenance service centers and the military.
. Two of these repair stations are located in Tulsa, Oklahoma, and the other two are located at our
Kernersville and Winston-Salem, North Carolina facilities.
. In conjunction with our MRO services also is an original equipment manufacturer, or OEM, of heat
transfer equipment for airplane manufacturers and other selected related products. Parts services division
offers inventory management and parts services for commercial, regional and charter airlines and business
aircraft owners.
Piedmont acquisition
. Prior to LIMC's acquisition of Piedmont in July 2005, the business was focused on providing MRO
services for heat transfer components and aircraft pneumatic ducting.
. With the acquisition of Piedmont LIMC expanded the scope of MRO services to include auxiliary power
units, or APUs, propellers and landing gear and also added a parts services business
Use of $33mm in IPO proceeds from sale of 3.5mm shars
(shareholders intend to sell 500,000 shares)
General corporate purposes, including working capital and to repay the $8mm of debt
===================
MF Global Ltd.	MF, C+, 8
broker of exchange-listed futures/options						Post-IPO shrs:121.3m
Hamilton, Bermuda			March fiscal year end	March, 07		IPO Mkt
Revenues			Proforma			Cap (mm)
Executiion only commissions ($mm)				$387		$4,488
Cleared commissions				$1,280		@$37
Principal income				$246
Interest income				$3,775
Other				$39
Total revenues				$5,726

Interest & transaction-based expenses
Interest expense				$3,381
Executive & clearing fees				$700
Sales commisions				$276

Revenues, net of interest & transactions expenses				$1,369
Operating expenses				$1,229
Operating income ($mm)				$140
Operating income % of net revenue				10%
Net income ($mm)				$114
Net income % of net revenue				8%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
MF Global Ltd. (MF)	$4,488	3.3	39	3.7	4.9	80%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	3	1	8
Compare & contrast
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	Price
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	July 12
Sorted by P/E ratio
Interactive Brokers (IBKR)	$9,580	7.6	24	3.1	4.3	$23.84
Intern'l Sec Exc (ISE)**	$2,560	11.4	38	9.3	9.3	$65.87
MF Global Ltd. (MF)	$4,488	3.3	39	3.7	4.9	80%
Chicago Merc (CME)	$20,480	15	39	12.6	12.6	$587.00
InterconExchng (ICE)	$11,930	24	54	9.6	-195.6	$170.00
CBOT Holdings BOT*	$12,110	16	55	15.8	15.8	$229.00
NYMEX Holdgs (NMX)	$12,510	19.0	56	14.7	23.0	$135.83
Based on annualizing March quarter results
* CME is buying BOT
**Deutsche Boerse agreed to buy ISE for $2.8 billion.
Business
. The leading broker of exchange-listed futures and options in the world.
. Provides execution and clearing services for exchange-traded and over-the-counter, or OTC, derivative
products, as well as for non-derivative foreign exchange products and securities in the cash market.
. Provides clients with access to many of the largest and fastest growing financial markets throughout the
world.
Specialty broker
MF believes it is the largest "specialty" broker operating in its markets.
. As a specialty broker, focuses on providing brokerage execution and clearing services to clients.
. Believes that clients highly value the focus on client service and the fact that, unlike many of competitors,
does not engage in non-brokerage businesses, such as investment banking, asset management or principal
investment activity, that could conflict with client's interests.
Leading position
. MF believes that the success of its specialty-brokerage strategy is demonstrated by MF's leading position
in most of its markets, particularly exchange-traded derivatives.
. For the three months ended March 31, 2007, based on data provided by the respective exchanges and
based on the volume of executed or cleared transactions, MF ranked first on the Chicago Mercantile
Exchange, the Chicago Board of Trade, the New York Mercantile Exchange, Commodity Exchange, Inc., a
division of the New York Mercantile Exchange, Euronext.Liffe and Eurex.
Global derivatives sector
. The global derivatives sector of MF's industry has experienced rapid growth in recent years based on the
volume of exchange-traded derivatives and the outstanding notional amounts of OTC derivatives.
. MF believes that the trends driving this growth-such as globalization, the migration to electronic
markets, increased asset allocations to derivative products by institutions, hedge funds and other asset
managers, the move to commercially oriented business practices at exchanges and market convergence
have contributed to higher volumes of derivatives AND cash transactions in many of its trading markets.
June quarter was soft
. MF estimates that the volumes of exchange-traded futures and options transactions executed and cleared
for the first quarter of fiscal 2008 to date are consistent with the general volume trends in the futures and
derivatives markets.
. Based on publicly available data from CME, Eurex and CBOT, derivatives volumes on those exchanges
generally declined in the early part of the first quarter of fiscal 2008 (June quarter) from the record levels of
the previous quarter, although volumes have since experienced notable improvement given recent market
volatility.
Risks
> Changes in U.S. AND International market factors that reduce trading volumes or interest #NAME? could
significantly harm the business.
. MF generates revenues primarily from transaction fees earned from executing and clearing client trades
and from interest income we earn on cash balances in clients' accounts.
. In fiscal 2007, derived approximately 29.1% of total revenues, and approximately 50.0% of revenues, net
of interest and transaction-based expenses, from executing and clearing client trades.
. Similarly, derived approximately 65.9% of total revenues, and approximately 29.4% of revenues, net of
interest and transaction-based expenses, in fiscal 2007 from net interest income. These revenue sources are
substantially dependent on client trading volumes and prevailing interest rates.
Revenue:
. 50% from executing & clearing client trades
. 29.5% from net interest income
> Changes in interest rates could hurt the business.
. In most cases, interest income is directly affected by the spread between the short-term interest rates paid
clients on their balances and the short-term rates MR earns from re-investing their cash. While these
spreads have remained within a relatively constant range over time, they can widen or narrow when interest
rate trends change. In addition, a portion of interest income relates to client balances on which MF does not
pay interest and thus is directly affected by the absolute level of short-term interest rates.
. As a result, a portion of interest income will decline if interest rates fall, regardless of the spreads that
determine most of our interest income.
> Overall, interest #NAME? have risen since '2004', which has helped MF to manage its interest rate spreads
effectively and has increased interest income on non-interest bearing client balances, and thus has had a
generally positive impact on revenues.
. However, interest rate trends change periodically and, if spreads begin to narrow or rates begin to decline,
revenues could be adversely affected. Short-term interest rates are highly sensitive to factors that are
beyond MF's control, including general economic conditions and the policies of various governmental and
regulatory authorities.
Note: from IPOdesktop
IBKR (Interactive Brokers) and exchanges may be a competitive factor offering a better electronic alternative
. The current trend toward electronic trade execution has diminished the role of some brokers in the
execution process.
. While clients have traditionally relied on brokers to execute orders by receiving them by telephone and
routing them to exchanges, a growing number of exchanges have developed systems that permit orders to
be routed through brokers electronically, thereby enabling clients to avoid more costly voice-execution
services and pressuring brokers to lower their execution commission rates.
. In a number of cases, exchanges provide large clients with direct electronic access, enabling them to
bypass brokers in the trade-execution process altogether, which is known as broker disintermediation.
. For example, some of MF's largest institutional clients are now able to execute orders on some exchanges
directly by electronic means and, as a result, the portion of the fees MF earns from these clients for
execution services has, in some cases, declined relative to the portion we earn from providing clearing
services for these trades.
. Although MF believes that it is less vulnerable to this trend than other brokers, it expects to face
increasing pressure to enhance the value-added execution services MF can offer and to expand MF's role as
a provider of clearing services in order to retain or expand market share, as exchanges are devoting
substantial resources to developing more efficient ways for clients to execute orders with reduced broker
involvement.
Relies on 3rd parties for technology
MF relies on third parties for the software and systems to provide brokerage services, and any
interruption, degradation or cessation of service by these third parties could harm the business.
. MF depend upon third-party vendors to provide the principal computerized systems to execute and
clear client trades.
. Relies primarily on two independent electronic platforms to process trades: a platform
developed by Rolfe & Nolan and used primarily in Europe and Asia, and the GMI platform developed by
SunGard and used primarily in the United States.
. While using two platforms that operate compatibly but independently provides some redundancy in the
event of a system-provider failure on one platform, it does not eliminate this risk.
. In addition, we may be unable to renew our licensing agreements with these system-providers for the
continued use of their technology upon expiration (April 1, 2016 for Rolfe & Nolan and December 31,
2012 for SunGard).
Competition
> Competes in trade execution primarily with other brokers. In addition, in recent years several major
exchanges have increasingly permitted clients to execute derivatives trades directly on exchanges by
electronic means.
> Competes in clearing with many other clearing firms, primarily commercial banks and other financial
institutions with ready access to capital and large lending operations.
> In addition, major exchanges provide clearing services to brokers and directly to some large financial
institutions for derivatives trades.
> The derivatives and cash brokerage industry is highly fragmented and competitive
. Competes with hundreds of brokers in the U.S. and throughout the world in one or more trading markets
. Although no one competitor operates in all of MF's trading markets, two brokers (The Fimat Group and
Calyon Financial) compete in many trading markets, and both firms are subsidiaries of large, well
capitalized financial institutions with global operations (Société Générale and Calyon, respectively).
. These two firms announced in January 2007 that they are engaged in exclusive discussions regarding a
possible merger.
. In addition, affiliates of the largest commercial and investment banks, including Citi, Goldman Sachs,
JPMorgan, Merrill Lynch, Morgan Stanley, and UBS compete in key areas such as clearing services, which
is a significant source of MF's revenue.
. Also competes with a large number of independent brokerage firms, such as R.J. O'Brien, as well as
regional brokers in particular markets around the world.
Recapitalization
The Recapitalization will require MF to obtain additional financing in the near future.
. Prior to the completion of this offering, MF intends to borrow, through one of its U.S. finance
subsidiaries, approximately $1.4 billion in a short-term "bridge" loan from several financial institutions,
including affiliates of several of the underwriters in this offering.
. MF will guarantee repayment under the bridge loan and intends to use a portion of the net proceeds from
the bridge loan to repay outstanding borrowings owed to Man Group and third parties
Use of stock proceeds, a $3.65bb IPO
. MF is selling 80% of the company on the IPO
. 100% to the Man Group, the selling shareholder.
Use of concurrent $1.2bb debt offering - repay (dividend) bridge loan

Ratio of earnings to fixed charges
2007	2006	2005	2004
1.08	1.1	1.3	$1.39
IPOdesktop comment:
notice the tightening ratio of earnings to fixed charges
===================
Netezza NZ)	NZ, B-, 8
data warehouses						Post-IPO shrs: 56mm
Framingham, MA	2004	2005	2006	March, 06*	March, 07*	IPO Mkt
Rev ($mm)	$36	$54	$80	$12	$25	Cap (mm)
Gross Profit %	71%	58%	59%	59%	61%	$0
Profit (loss) $mm	-$3	-$14	-$8	-$4.1	-$1.9	@$9
Profit (loss) %	-8%	-26%	-10%	-34%	-8%
				*quarter ended March 31
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Netezza (NZ)	$556	5.6	-73	5.7	5.7	16%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	3	1	2	8
Business
. A leading provider of data warehouse appliances. Founded in August 2000 to develop data warehouse
appliances that enable real-time business intelligence
. From inception through April 30, 2007, sold over 230 data warehouse appliances worldwide to 101 data
intensive customers including large global enterprises, mid-market companies and government agencies.
The Industry & trends
. NZ believes that the amount of data that is being generated and stored by organizations is exploding
. Examples of this data include click-stream records generated by e-business, customer purchasing
histories, call data records, information from RFID tagging of inventory and products, and pharmaceutical
trial data.
. Additionally, compliance initiatives driven by government regulations, such as those issued under the
Sarbanes-Oxley Act of 2002 and the Health Insurance Portability and Accountability Act of 1996, or
HIPAA, as well as company policies requiring data preservation, are expanding the proportion of data that
must be retained and easily accessible for future use.
. As the volume of data continues to grow, enterprises have recognized the value of analyzing such data to
significantly improve their operations and competitive position.
. These enterprises have also realized that frequent analysis of data at a more detailed level is more
meaningful than periodic analysis of sampled data.
Customers
Span multiple vertical industries and include data intensive companies and government agencies.
. Ahold, Amazon.com, American Red Cross, AOL, Blue Cross Blue Shield of Rhode Island, Catalina
Marketing, CNET Networks, CompuCredit Corporation, Epsilon, LoanPerformance, Marriott, the NASD,
Neiman Marcus Group, Nielsen Company, Orange UK, Premier Inc., Restoration Hardware, Ross Stores,
Ryder System, Source Healthcare Analytics, Inc., a Wolters Kluwer Health company, the United States
Army Corps of Engineers and the United States Department of Veterans Affairs.
. Each of the companies listed is a current customer who has purchased at least $300,000 worth of products
or services from NZ.
Netezza Performance Server
. The Netezza Performance Server, or NPS, integrates database, server and storage platforms in a purpose
built unit to enable detailed queries and analyses on large volumes of stored data.
. Results of these queries and analyses, often referred to as business intelligence, provide organizations with
actionable information to improve their business operations.
. NZ designed its NPS data warehouse appliance specifically for analysis of terabytes of data at higher
performance levels and at a lower total cost of ownership with greater ease of use than can be achieved via
traditional data warehouse systems.
. NZ believes its NPS appliance performs faster, deeper and more iterative analyses on larger amounts of
detailed data, giving our customers greater insight into trends and anomalies in their businesses, thereby
enabling them to make better strategic decisions.
Competition
. The data warehouse industry has traditionally been dominated by a small number of major providers.
EMC, Hewlett-Packard, IBM, Oracle, Sun Microsystems, Sybase and Teradata (a division of NCR) are our
principal competitors in the data warehouse marketplace.
. Each of these companies provides several if not all elements of a data warehouse environment as
individual products, including database software, servers, storage and professional services
. However, according to NZ, they do not provide an integrated solution similar to NZ's
Use of $82mm in IPO proceeds
. Working capital and other general corporate purposes, including the development of new products, sales
and marketing activities, capital expenditures and the costs of operating as a public company.
. Currently, expects to fund a significant portion of working capital and other general corporate purposes
with funds generated from the sale of our products, and as a result, does not have a specific plan, timeline
or budget for the allocation of the net proceeds from this offering among potential general corporate
purposes.
. Also intends to use a portion of the net proceeds to us to repay outstanding debt under two loan
agreements
===================
Orbitz Worldwide (OWW)	OWW, C+, 7
online travel						Post-IPO shrs:89mm
Chicago, IL		Proforma	Dec 2006 yr	3/31/07 qtr		IPO Mkt
Revenues			$753	$212		Cap (mm)
Cost of revenue			15%	18%		$1,409
Operating income			-2%	1%		@$37
Interest % of revenue			10%	8%
Loss			($91)	($14)
% oss of revenue			-12%	-7%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
Orbitz Worldwide (OWW)	$1,409	1.7	-25	2.0	-1.6	41%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		1	2	3	1	7
Business
. A leading global online travel company that uses innovative technology to enable leisure and business
travelers to research, plan and book a broad range of travel products.
. Owns and operate a strong portfolio of consumer brands that includes: Orbitz, CheapTickets, ebookers,
HotelClub, RatesToGo and the Away Network and corporate travel brands, Orbitz for Business and
Travelport for Business.
. Provides customers with access to a comprehensive set of travel products, including air, hotels, vacation
packages, car rentals, cruises, travel insurance and destination services from over 80,000 suppliers
worldwide.
.A leader in air travel, the largest online travel segment. This offersa significant opportunity to drive growth
in non-air categories, specifically hotels and vacation packages that are customized by travelers, which
OWW refers to as dynamic vacation packages
. OWW also believes there are substantial growth opportunities in fast growing regions outside of the U.S.
for OWW strong international brands: ebookers, HotelClub and RatesToGo.
Buy-out history
On August, 23, 2006, affiliates of The Blackstone Group and TCV completed the acquisition of the
Travelport businesses of Cendant, including the businesses which comprise the combined reporting group
of Orbitz Worldwide.
Competition
> Online travel companies
Expedia, Hotels.com and Hotwire, which are owned by Expedia, Inc., Travelocity and lastminute.com,
which are owned by Sabre Holdings Corporation, and Priceline.com, including its international hotel
business.
> Travelport operates in the same highly competitive industry as OWW and could compete. Upon
consummation of this offering, Travelport will be in a unique position to influence and control the
operation of OWWr business and the management of affairs since it will indirectly own approximately 60%
of the common stock.
. Prior to this offering, OWWe will grant Travelport and its affiliates, including future affiliates perpetual
licenses to use certain intellectual property. Travelport and its affiliates will be prohibited from
sublicensing OWW intellectual property (other than the supplier link airline direct connect technology) to
any third party for competitive use, unless Travelport incorporates or uses OWW intellectual property with
Travelport products or services to enhance or improve Travelport products or services (but not to provide
OWW intellectual property to third parties on a stand-alone basis).
. Travelport and its affiliates will be able to use such intellectual property to compete directly with us.
> Other
Potentially faces competition from a number of large Internet companies, such as Google, AOL and
Yahoo!, and metasearch companies, such as Kayak.com, Side Step, Inc. and Yahoo!Farechase.
Use of $535mm in IPO proceeds
. Repay a portion of the $860 million intercompany note to pay a dividend to Travelport
. Affiliates of the underwriters, including Morgan Stanley & Co. Incorporated, Goldman, Sachs & Co.,
Lehman Brothers Inc., J.P. Morgan Securities Inc., Credit Suisse Securities (USA) LLC, and UBS
Securities LLC, are lenders under Travelport's senior secured term loan facility and may receive a
significant portion of the net proceeds of the offering.
Concurrent senior debt, $600mm
$600mm
$530 million of the net proceeds from the term loan to repay the remainder of the $860 million of
indebtedness owee to Travelport and to pay a dividend to Travelport.
. Also intends to enter into a seven-year $125 million senior secured synthetic letter of credit facility. On
the closing date of the offering, plans to issue $110 million in letters of credit under this facility.
===================
SemGroup Energy Prtnr	SGLP, C+, 7
crude oil midstream services						Post-IPO shrs:26mm
Tulsa, OK		Proforma	Dec 2006 yr	3/31/07 qtr		IPO Mkt
Revenues ($mm)			$98	$27		Cap (mm)
Operating income %			42%	36%		$513
Net income ($mm)			$32	$7		@$20
Net % of revenue			33%	27%
EBITDA			$50	$12
EBITDA % of rev			51%	44%
VALUATION RATIOS	IPO Mrkt	Price /	Price /	Price /	Price /	% offered
	Cap (mm)	Sales	Earnings	BookValue	TangibleBV	in IPO
SemGroup , L.P. (SGLP)	$513	4.8	17	-17.7	-17.7	49%
SCORECARD		Mgt	Market	Market Do-	Proprie-	Total
1-5, 5 is high			Growth	mination	tary	rating
20 is perfect		2	2	2	1	7
Initial Distribution Rate
$0.3125 per unit per complete quarter, or $1.25 per unit per year
. 6.25% per year
Business
'. Limited partnership formed on February 22, 2007 by the Parent, a provider of midstream energy services,
to own, operate and develop a diversified portfolio of complementary midstream energy assets.
. Currently provide crude oil gathering, transportation, terminalling and storage services primarily in core
operating areas in Oklahoma, Kansas and Texas.
. Intends to acquire and construct a significant amount of additional midstream energy assets, including
acquisitions from the Parent and jointly with the Parent.
. At March 31, 2007, the Parent had total net book value of property, plant and equipment of $1.1 billion,
with the crude oil gathering, transportation, terminalling and storage assets to be contributed to SGLP prior
to the closing of this offering, which SGLP refers to as the Crude Oil Business, representing approximately
$102.0 million of this amount
The parent, SemGroup
. Founded in April 2000, SemGroup is included on Forbes' list of America's Largest Private Companies.
The company debuted on the list in 2004 as number 14 and was ranked number five in 2006.
. Since the Parent's inception in April 2000 through March 31, 2007, the Parent has completed 47
acquisitions at an aggregate purchase price of approximately $978 million, excluding amounts paid for
working capital.
. The Parent will retain a significant indirect interest in the SGLP partnership through its ownership of a
49.1% limited partner interest, a 2% general partner interest and incentive distribution rights.
Use of proceeds
. 100% to SemGroup Holdings. SemGroup Holdings that intends to use the net proceeds received by it
from the sale of the common units to repay outstanding indebtedness of the Parent.
. In addition, will borrow $137.5 million under a new five-year credit facility prior to the closing of this
offering, and distribute the proceeds to SemGroup Holdings, which intendes to use the proceeds distributed
to it from borrowings under the credit facility to repay outstanding indebtedness of the Parent and to fund
offering related expenses