1. Indiana University Select Career Opportunities Orientation Program September 16, 2003 Presented by: Mike Newell Jeff Brown www.intecap.com Financial Opportunities in Consulting

2. 1 Introduction to InteCap  First consulting firm to launch an integrated practice dedicated to helping companies manage and extract value from their intellectual property  Over 140 consultants with backgrounds in accounting, economics, engineering, finance, marketing and statistics  Offices located in Chicago, New York, Los Angeles, Silicon Valley, Boston, Washington D.C., Houston and London  Clients include leading corporations, high-tech start- ups, and providers of capital involved in “IP-rich” transactions

3. 2 Presenter Backgrounds  Mike Newell, Director °Graduated with a B.S. in Mechanical Engineering from University of Notre Dame (1990) °Worked as a Capital Project Manager in the Refining & Marketing Departments of Amoco Oil Company °MBA from University of Chicago’s Graduate School of Business in Finance, Strategy, and Operations Mgmt (1996) °Principal of Tangram Partners, a private equity firm °Joined InteCap in February 2001  Jeff Brown, Associate °Graduated with a B.S. in finance and accounting from Indiana University (2000) °Joined InteCap as an Analyst °Promoted to Associate in 2003

4. 3 Introduction to Financial Consulting  Who are financial consultants?  What do financial consultants offer their clients?  In what types of projects are financial consultants engaged?  What are typical tasks performed during the course of an engagement?  Self-assessment  Financial consulting as a career platform

5. 4 Financial Services Litigation Support Investment Consulting Services Intellectual Asset Management Who are Financial Consultants?

6. 5 What do Financial Consultants Offer Their Clients?  Specialized expertise  Outsourcing/resources  Fresh perspective and objective third-party opinion  Quick turn-around and focused attention  Structured solutions to unstructured problems  The “why” behind the numbers

7. 6 Valuation Strategy Strategy Litigation What the value is What the value should have been What the value could be In What Types of Projects are Financial Consultants Engaged?

8. 7 Valuation Strategy Strategy Litigation Written report, analysis, and presentation Expert report, analysis, and testimony Written assessment, recommendation and implementation What are the Results/Deliverables of These Projects?

9. 8 What is the economic injury to the patent owner? Depressed Prices Lost Sales Opportunity Cost The Infringers Infringer 1 Infringer 2 Infringer 3 The Patent A Better Mousetrap! = Litigation Case Study Patent Infringement Damages

10. 9 Litigation Case Study The Role of an Analyst  Participate in team meetings to discuss overall approach to assignment  Review client documents  Perform industry research  Research and compare established royalty rates  Build financial models  Perform quality control  Create trial exhibits

11. 10 Valuation Case Study Trademark Valuation for Tax Purposes  Retained by a global manufacturer of household appliances to perform a trademark portfolio valuation Total Enterprise Value 100% Total Value of Intangibles 56% Other Intangibles Value 32% Fair Market Value 24% 56%

12. 11 Valuation Case Study The Role of an Analyst  Participate in brainstorming discussions with team members  Customize questionnaires for client interviews  Research comparable companies in the industry  Forecast cash flows and prepare a cost of capital analysis  Prepare a valuation report/narrative  Create graphical presentations of financial analysis

13. 12 Client dilemma How can we commercialize How can we commercialize our intellectual property? Strategic Options Form a NEWCO? Exclusively License? Non Exclusively License? Partner? Strategy Case Study Commercialization of Early Stage Technology

14. 13 Strategy Case Study The Role of an Analyst  Participate in initial kick-off meetings with client  Research potential technology applications and markets  Develop valuation analysis  Participate in commercialization strategy brainstorming discussions with team members  Assist in communication of findings with client

15. 14 Self-Assessment Would you Enjoy Being a Financial Consultant? Do you prefer... Other financial career Financial consultant  Finance only?  Finance, marketing, economics, accounting?  Concentrate in a single industry?  Variety of industries?  Compartmentalized work?  Team work?  Project work?  Functional work?  Corporate culture?  Consulting culture?  Unstructured environment?  Structured environment?

16. 15 Consulting as a Career Platform  Various skills acquired as a financial consultant  CPA, CFA, MBA opportunities  Client contact and industry exposure  Foundation for many other careers

17. 16 Consulting: Managing Director, InteCap Investment Banking: Managing Director, Bear Stearns Marketing: Brand Manager, Procter & Gamble Sales: Account Executive, Warner Lambert Graduate School: MBA - Kellogg, Chicago, UCLA, Columbia, etc. Law - Michigan, UVA, Wisconsin, etc. Consulting as a Career Platform Examples of InteCap Careers

18. 17 Financial consultants provide: Clients with…  expertise and objectivity  creative solutions  clarity and structure Consultants with…  use and development of a wide range of skills  broad career platform In Summary...