(Almost) A Year in the App Store: A 20 minute Case Study Julian Farrior, CEO / Founder

Snapshot: Casual games for a new breed of mobile gamers Founded 04/01/09 Products have been live for 9.5 months 21,000,000+ installs to date 4 products peaked in the top 5 overall 1 product never touched the top 100 $2,300,000 in net revenue $1,300,000 app store sales (net) $1,000,000 mobile ad sales (net) Raised $145,000 in initial startup capital 7 full time employees (+8 contractors) Boulder, CO based

#3 Paid#1 Free #3 Free#4 Paid #26 Strategy Ragdoll BlasterPaper Toss RDB LitePT: World Tour Harbor Havoc 3D #41 Strategy ? Free ? Paid ? Free #12 Simulation HH3D Lite PT: Ad FreeRagdoll Blaster 2 Strike Knight Physics-Ball ? Free ? Paid ? Free NinJump PT: Time Traveler Dr. Shocker Caverns ? Free Harbor Havoc 3D ? Free Dynamite Surfing ? Free Cat & Mouse ? Free RDB2 Lite

Assembled a talented (and experienced) team Focused on distribution Gave away something of value for free, leveraged heavily Diversified revenue streams App store sales (enormous downward pricing pressure) Mobile advertising In-app purchases Kept production cycles short Designed for the medium Designed for the audience Created economies Met the press Worked with Apple Listened to users What we did right:

Paper Toss – Monthly Impressions/Levers: December 2009January 2010 Total Impressions402,000,000411,000,000 House21,000,000224,000,000 Advertiser381,000,000187,000,000 Total Revenue (net)$468,000$336,000 App Store Sales$89,000$217,000 Ad Sales$379,000$119,000 Monthly Sessions46,500,00050,000,000 Monthly Uniques6,800,0007,300,000

Ragdoll Blaster Daily Downloads: Catalysts Featured by Apple in: “What We’re Playing” RDB Lite Goes Live RDB House Ads in “Paper Toss” Featured by Apple in: “What’s Hot” RDB Lite House Ads in “Paper Toss” Price Dropped from $1.99 to $.99 Holiday Lift Heavy house ad rotation in Jan.

Harbor Havoc 3D Launched in an overly saturated market (line drawing games) Flight Control and 15+ others Pushed for press coverage too soon App rejected by Apple - delayed launch, press efforts wasted Development cycle ran upwards of 3 months Did not beta test enough Gameplay was not quite ready (FF button, saving game, etc.) Botched lite version with wrong free level Cannibalized sales Overly reliant on potential PT lift Designed to be a paid app not a free app Would have been better as the latter Have not yet diversified into in-app purchases Need to scale quicker – window is small What we did wrong:

What we want to do now: Blow out distribution, 2010 focus 5-10 free apps per quarter Keep the pipe wide and impressions high Expand mobile advertising capacity Explore in-app purchases Continue to build/expand franchises Aggressively grow team/output Scale revenue curve Push free products to other platforms? Build our own backend tools? Explore turn based gaming License content Increase social elements in games Continue to build a brand Free with $.99 buyouts

Narrow window to truly scale distribution Power of free is starting to catch on Zynga / CrowdStar / Playfish / Playdom / DeNA will become serious about the iPhone What does the Quattro acquisition by Apple mean for developers / advertisers / users? Why hasn’t the blueprint for virtual goods yet exploded on mobile? Time to move is now on turn based games Waiting for Android (or any other comp. platform) to become meaningful How do I best communicate directly with users? How important is this? Concerns:

Brand will matter (more) Distribution will matter (more) Data will matter (more) Mobile Advertising will change the game 2010 will be exciting, fallout/rollup has begun Non-gaming audience will continue to expand Mitigating volatility in the business is crucial Applying portfolio theory Maintaining our footprint is critical Have fun, it beats working for a living Final Thoughts (Predictions)

Q&A