OTC Securities The IPO and Financing Platform dedicated to high growth companies

The New Markets are moving away from young high growth companies Euronext : Merger of Paris, Brussels and Amsterdam Young high growth companies will have to face demanding admission criteria, and wait a long time… … whereas an IPO might be a better solution than a private placement. The best solution : an IPO on the OTC Market - the «Marché Libre ». The Gap

But the Marché Libre offers only an imperfect solution The Marché Libre is an electronic platform dedicated to small and mid caps. There is no Admission Committee nor any other selection process. High potential companies are listed together with much less attractive ones (About 20 companies only would meet the selection criteria of OTC Securities) The Gap

The Mission of OTC Securities By correcting the flaws of the Marché Libre: To offer high growth companies the opportunity to reach a level of development that will make them qualify for a European regulated market. The Mission

A Bridge to paneuropean regulated markets The Mission Marché Libre

To be the »one stop shop» for high growth companies OTC Securities positions itself both as a Financing and IPO Platform, and a Brand: Companies are selected according to criteria : turnover, growth rate, European presence... Our mission starts with the IPO on the OTC Securities segment and includes the transfer to a paneuropean regulated market. The Mission

One Partner for Three phases Phase 1 : IPO on the OTC Securities segment (valuation, regulation issues, communication, placing) Phase 2 : OTC Securities and KPMG advise the companies on compliance with the OTC Securities Rules. OTC organizes the promotion of the companies. Phase 3 : Transfer to a paneuropean regulated market : OTC acts as advisor to the companies in matters relating to the structure of the transaction, the selection of the underwriting syndicate… The Mission

A Brand on the Marché Libre recognized thanks to : The “OTC Rules” : financial communication, improvement of internal reporting and active involvement in the promotion of the issuers. The Selection Committee : Members are professionals of investment banking, venture capital, PR activities and of government support to innovation. The promotion of the Brand : “Meet the analysts” shows, Web Site dedicated to its companies, OTC tag in financial newspapers. The Mission

Market size Admission criteria on the Nouveau Marché keep raising and this trend is accelerating. Most underwriters are now requesting a minimum fund raising of Euros 15 million for an IPO. Many companies do not need such amounts and many investors are now reluctant to invest so much. This size factor alone would account for the regular growth of the number of IPOs on the Marché Libre since its creation in The Market Chart

IPOs on the French Markets The Market

Performance Marché Libre: a steady trend

OTC Securities Targets Companies will in priority be looked for in the venture capital portfolios which have experienced a very strong growth for the last three years. The number of companies potentially eligible for an IPO on OTC amounts to a stock of 500 to which an annual flow of 150 can be added. The Market Chart

OTC Securities Targets Number of companies financed by VCs The Market

Competitive Positioning Three categories of potential competitors : IPO Consulting firms EFI (Europe Finance et Industrie) Brokerage houses BUT : OTC is the only one-stop shop for the IPOs of high growth companies, the only structure offering both the IPO on its segment of the Marché Libre and a complete follow up until the transfer to a paneuropean regulated market. The Positioning

A very experienced management team Didier Duhem (43), Chairman : HEC, 20 years in Finance (Crédit Lyonnais, Hambrecht & Quist Saint Dominique, Spef Technology), former EASD Chairman, founder of EuropeOffering.com. Marc Eichinger (38), Investors Relations : DECS (Diploma in accounting), 15 years in trading rooms (Mitsubishi Bank Paris, ING-BBL Paris). The Team

The Selection Committee Beyond Didier Duhem, the Members are: Eric Levasseur, Chairman of Actus, N°1 in France as Financial PR agency. Christophe Chausson, Chairman of Chausson Finance, more than one billion FRF raised for 53 companies over the last four years. Maïr Fereres, Partner KPMG audit, Member of the Executive Committee, in charge of all IPOs in France. Véronique Rondet-Bresard, Head of the IPO Department with Banque SanPaolo. Jean-Claude Porée : Advisor to the Chairman of Anvar and Member of the Admission Committee of the Nouveau Marché. The Team

Milestones already met Nov. 00 : Partnership with Banque SanPaolo Dec. 00 : Web site on line & Selection Committee operational Feb. 01 : Green light from the COB Mar. 01 : KPMG becomes a Partner and a shareholder June. 01 : First companies listed on OTC June. 01 : Portzamparc becomes a Partner and a shareholder Milestones

Next steps for 2001 and 2002 Lead 25% of the IPOs on the Marché Libre Transfer 1/3 of OTC listed companies to a European regulated market Get the status of investment firm Bring OTC Securities public on OTC within 18 months Milestones

Contacts Didier Duhem : Marc Eichinger Tel : + 33 (0) Fax : + 33 (0) Contacts