1. December, 2001 The Life After…

2. 2 International Terror Intifada NASDAQ How Bad Is it ?! Next Year We’ll make the big step ahead…

3. Supply / Demand Repealed Shares of top five tech firms: Cisco Systems, Intel, Microsoft, Oracle, Sun Microsystems The world has reached an absurd disparity between the number of outstanding shares of technology stocks and the number of people out there to chase them: World population

4. Equity Capital Markets Update

5. The IPO Market will probably not gain much momentum in the last five weeks of 2001. According to Dealogic, there are only 51 IPOs in the pipeline. This is a considerable decline when compared to the same time last year when 187 companies were scheduled to go public. The Pipeline

6. IPO Dollars in Backlog (millions of Dollars) Technology represents 42% of the dollars in the IPO pipelines

7. Mutual Funds Flows Money Markets: (as of November 20, 2001) Assets at an all-time record high of $2.29 trillion While money market yields have reached historical lows, they still offer institutional investors a higher return than treasury bills and commercial paper.

8. Mutual Funds Flows Equity Funds: (as of November 20, 2001) Three consecutive weeks of hefty inflows-assets of $2.73 trillion Half of the week’s (November 13-20) inflows of $2.1 billion went into large cap growth funds and half went into small and aggressive growth funds

9. New Offerings are Trickling Back:

10. Follow-On Pricings Due to Deteriorated market conditions, supply of follow-ons is lighter and the appetite for properly positioned follow-ons is growing Although continuing to exhibit concerns about valuations and fundamentals, investors continue to seek growth opportunities

11. 11 “Cash Is King…” Much less money- 20-25 % Very little new investments (in new companies) New emphasis on profit, cash flow Different schedules- raising money takes a lot of time Different legal environment Venture Capital New reality in the next few years:

12. 12 Get down... New Economy Old Economy Back to reality- sales and profit are “In” again! We are five years back… Planning of financing and fund raising, sales and profits It’s a new world- and we need to get used to it… In The long run- “The New Economy”?!

13. What is the market looking for in a tech company? A strong management team Consistent growth A low cash burn rate A clear sign to profitability Avoid unnecessary hype Under promise and over deliver! Key Take Aways

14. The New Tech World…