1. T H O M S O N F I N A N C I A L Venture Capital-Backed IPO Issuance: 2005 Review and the Outlook for 2006 Robert Keiser Senior Research Manager – Capital Markets Thomson Financial Research Group

2. T H O M S O N F I N A N C I A L $4,461

3. T H O M S O N F I N A N C I A L $15,764

4. T H O M S O N F I N A N C I A L 12000264$25,499.4 21999270$20,882.1 31996278$12,069.7 42004 93 $11,014.9 51995205$ 8,147.2 61992197$ 7,521.3 71993221$ 6,688.1 81991157$ 4,922.5 91997138$ 4,826.2 101994167$ 4,670.9 112005 56$ 4,461.0 121998 79$ 3,881.1 132001 41$ 3,489.9 142002 24$ 2,473.5 152003 29$ 2,022.7 161990 70$ 1,395.9 Rank Year #IPOs Off Amt $M

5. T H O M S O N F I N A N C I A L US Micro, Small, and Large Cap Stock Indices The S&P 500 Lags Since 2000! 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Jan-90Jan-91Jan-92Jan-93Jan-94Jan-95Jan-96Jan-97 Jan-98 Jan-99Jan-00Jan-01Jan-02Jan-03Jan-04Jan-05Jan-06 Russell MicroCapRussell SmallCapS&P 500

6. T H O M S O N F I N A N C I A L Average Size ($ Mil) & Company Age (Years) of Annual IPO Production Over Time $79.7 $235.3 8.1 24.0 $0 $50 $100 $150 $200 $250 19801982 1984 198619881990199219941996199820002002 2004 0 5 10 15 20 25 30 35 40 Avg Size VC IPOAvg Size Buyout IPOAvg Age VC IPOAvg Age Buyout IPO

7. T H O M S O N F I N A N C I A L 12000$68,492.11 21999$37,513.52 32001$16,798.92 42004 $15,437.89 52005$15,249.41 61998$ 9,550.40 71996$ 8,531.03 82002$ 7,874.36 92003$ 7,726,08 101997$ 7,444,13 111995 $ 3,788.32 121994 $ 3,474,64 131992 $ 2,544,80 141993 $ 1,701.19 151988 $ 542.14 161987 $ 398.14 US Venture Rank Year Capital-Backed M&A ($Mil)

8. T H O M S O N F I N A N C I A L -400% -300% -200% -100% 0% 100% 200% 300% 400% 1986-21987-21988-21989-21990-21991-21992-21993-21994-21995-21996-2 1997-2 1998-21999-22000-22001-22002-22003-22004-22005-2 -40.00% -30.00% -20.00% -10.00% 0.00% 10.00% 20.00% 30.00% 40.00% Qtrly y/y Chg VC IPOsQtrly y/y Chg S&P 500 Venture Capital IPO Issuance S&P 500 Performance Relationship; R2=50.7%

9. T H O M S O N F I N A N C I A L US, EU, & Asia Equity Performance YoY

10. T H O M S O N F I N A N C I A L Pipeline - Annual # of Companies Receiving Venture Capital Funding and Amounts ($ Mil)

11. T H O M S O N F I N A N C I A L The Stock Market and Risk Premia

12. T H O M S O N F I N A N C I A L 1/1/1990 - 2/2/1990 867.519 1/1/1991 - 2/2/1991 856.1 5 1/1/1992 - 2/2/19923,237.146 1/1/1993 - 2/2/19933,180.034 1/1/1994 - 2/2/19943,515.246 1/1/1995 - 2/2/19951,638.925 1/1/1996 - 2/2/19961,711.938 1/1/1997 - 2/2/19972,270.737 1/1/1998 - 2/2/19981,507.622 1/1/1999 - 2/2/19992,250.028 1/1/2000 - 2/2/20003,334.420 1/1/2001 - 2/2/2001 395.6 8 1/1/2002 - 2/2/20021,297.5 3 1/1/2003 - 2/2/2003 ▬▬ ▬▬ 1/1/2004 - 2/2/20041,494.8 9 1/1/2005 - 2/2/20052,133.910 1/1/2006 - 2/2/20062,728.819 Issuance Period $ Mil #

13. T H O M S O N F I N A N C I A L 1998 Venture Capital Investments by Tech Applications

14. T H O M S O N F I N A N C I A L 2001 - 2005 Venture Capital Investments by Tech Applications

15. T H O M S O N F I N A N C I A L 1998 VC Investments by Tech Applications 2001 – 2005 VC Investments by Tech Applications

16. T H O M S O N F I N A N C I A L 2001 – 2005 Non-Internet Venture Capital Investments by Industry $97.87B

17. T H O M S O N F I N A N C I A L Growth Rate of Non-Internet VC Industry Investments 2005 over 1998 133% 97% 67% 62% 36% 23% 3% -14% 87%

18. T H O M S O N F I N A N C I A L 2001 – 2005 Non-Internet VC Industry Investments $97.87B Growth Rate of Non-Internet VC Industry Investments 2005 over 1998 133% 97% 87% 67% 62% 36% 23% 3% -14%

19. T H O M S O N F I N A N C I A L Focus Media (China) Holdings Co., Ltd.$171.70 Under Armour, Inc. $157.61 Adams Laboratories, Inc. $135.15 Heartland Payment Systems $121.50 Saifun Semiconductors, Ltd. $117.50 Advanced Analogic Technologies, Inc. $106.00 iRobot Corporation $103.20 Coley Pharmaceutical Group, Inc. $ 96.00 Vimicro Corporation $ 86.97 Aspreva Pharmaceuticals Corporation $ 79.20 Ikanos Communications, Inc. $ 76.80 Silicon Motion Technology Corporation $ 70.35 LHC Group, LLC $ 67.20 Genomic Health, Inc. $ 60.20 DexCom, Inc. $ 56.40 Somaxon Pharmaceuticals, Inc. $ 55.00 NxStage Medical, Inc. $ 55.00 ViaCell, Inc. (FKA: t.Breeders, Inc.) $ 52.50 2005 Non-Internet Venture Capital IPOs%Mil

20. T H O M S O N F I N A N C I A L XenoPort, Inc. $ 52.50 Allion Healthcare, Inc. $ 52.00 AtriCure, Inc. $ 48.00 CombinatoRx, Inc. $ 42.00 Sunesis Pharmaceuticals, Inc. $ 42.00 Favrille, Inc. $ 42.00 CryoCor, Inc. $ 40.80 Icagen, Inc. $ 40.00 Threshold Pharmaceuticals, Inc. $ 37.33 Pixelplus Co., Ltd. $ 36.00 Micrus Corporation $ 35.75 Avalon Pharmaceuticals, Inc. $ 28.88 Hoku Scientific, Inc. $ 21.00 Electro-Optical Sciences, Inc. $ 20.00 HemoSense, Inc. $ 19.25 Accentia BioPharmaceuticals, Inc. $ 19.20 A4S Security, Inc. $ 7.20 2005 Non-Internet Venture Capital IPOs%Mil