Public Company Analytics Recent M&A Transactions Recent Financings January 2009

Software Review 2 Likely impacts of Obama administration in the technology sector The Obama administration has discussed plans to stimulate the economy with a trillion dollar economic stimulus package. President- elect Barack Obama plans to revive the economy by investing in infrastructure projects aimed at creating a path for long-term sustainable economic growth which will likely involve everything from infrastructure projects such as improving bridges, roads and energy efficiency, providing broader access to broadband internet, increased education spending, and likely healthcare reform. The list of technology initiatives in the stimulus plan include investments in electronic information technology systems for lowering health care costs, investments in climate-friendly energy development and deployment technologies, investments in modern next-generation communications infrastructure (3G, WiMax, etc.), emphasis and investments in clean energy and lastly, modernization of public safety networks across the United States. The new administration has historically been a big advocate of net-neutrality and strongly believes in preserving the benefits of open competition on Internet. Such an open-internet policy will solidify free usage of the Web by Internet application companies such as eBay, Microsoft, Yahoo and Amazon while curtailing plans of implementing Quality of Service (QoS) controls by ISPs such as AT&T, Comcast and Verizon. Additionally, Obama’s team has discussed plans to substantially increase federal funding targeted towards special initiatives, such as infrastructure investments focused on fostering competitive markets for broadband access and services by promoting next-generation technologies and applications, and providing improved usage of nation’s wireless spectrum. Additional significant initiatives include $150 billion earmarked for clean energy programs and another $50 billion for the healthcare information technology industry. Obama’s administration has discussed that sustained growth requires successful healthcare reform, and as such, we believe that healthcare technology and healthcare IT could be amongst the first beneficiaries of these suggested reforms. Obama’s $10 billion per year investment for next 5 years would likely provide the long overdue revamp of health care IT systems including large scale implementations of electronic medical record (EMR) systems to replace paper based medical record systems. Such investments would boost demand for additional related solutions from enterprise content management (ECM) vendors such as EMC, Vignette, IBM, Interwoven, and others, perhaps database management system (DBMS) vendors such as Oracle, IBM and Microsoft, as well as business process management (BPM) vendors such as ILOG, TIBCO and Pegasystems. Along with IT majors, we expect to see growth opportunities for companies currently developing and selling medical record software that include large companies such as McKesson and EPIC, as well as smaller companies such as recently funded Ethidium Health Systems, MedSeek, as well as open source EMR provider MedSphere Systems. Furthermore, healthcare software space has been further highlighted in the news by the entry of vendors such as Google and Microsoft aiming to address the issue of healthcare information systems through Google Health and Microsoft HealthVault.

Software Review 3 Likely impacts of Obama administration in the technology sector (Cont.) We have recently seen the number of emerging companies in the healthcare software space mushroom over the last couple of years, developing a range of specialized and niche products to suit different types of medical practices of varying sizes and needs. Led by the potentially strong growth prospects, we expect to see the previously discussed economic stimulus and likely healthcare reform spur both funding and M&A in this arena. Some notable acquisitions in this sector during 2008 include: Eclipsys/MediNotes, Bottomline Technologies/Optio Software, McKesson/Vivalog, Portico Systems/Ethidium Health Systems, Health Systems Solutions/Emageon and Nuance/eScription. Financings of early-stage companies in healthcare software segment during 2008 include financings of: Digital Healthcare, Etransmedia Technology, Certify Data Systems, and PerGenix by VCs such as Alliance Trust Equity Partners, Noble Fund Managers, Peninsula Capital Partners and Ault Glazer. By Matthew Raubacher & Amandeep Juneja

Software Review 4 Public Company Data * Pending acquisition

Software Review 5 Public Company Data * Pending acquisition

Software Review 6 Public Company Data

Software Review 7 Public Company Data

Software Review 8 Software Public Company Data Software Price Performance – One Year

Software Review 9 Recent Software M&A Transactions

Software Review 10 Recent Software M&A Transactions

Software Review 11 Recent Software M&A Transactions

Software Review 12 Recent Software M&A Transactions

Software Review 13 Recent Software M&A Transactions

Software Review 14 Recent Software M&A Transactions Note: Excludes transactions with known deal value < $3MM Excludes transactions in the wireless/mobile sectors

Software Review 15 Recent Software Financings

Software Review 16 Recent Software Financings

Software Review 17 Recent Software Financings

Software Review 18 Recent Software Financings

Software Review 19 Recent Software Financings Note: Excludes transactions with known deal value < $2MM Excludes transactions in the wireless/mobile sectors

Software Review 20 Ridgecrest Capital Partners is a private investment bank based in the San Francisco area providing expert merger and acquisitions, capital raising and financial restructuring advisory services for leading technology growth companies. Below are a few of the companies we have assisted in recent transactions: For further information, please contact any of the Ridgecrest professionals listed below: Ridgecrest Capital Partners