1. Confidential

2. Investments opportunities under uncertain market conditions Aaron Mankovski Managing Director February 4, 2001

3. Confidential Crisis = Opportunity

4. Confidential Back to the basics Management Market Business model Competition Technology Valuation Financing IPO, Mergers and Acquisitions

5. Confidential Management Team Business experience Technology background International experience Management experience Customer orientation Team working together openness

6. Confidential The Market The need Market size Potential market for the company (real) Location

7. Confidential The Business Model The need and the value proposition The customer profile REAL revenue model Price/performance – Price/pain Potential revenue forecast – reality The sales model (direct, OEM etc.) Sales Cycle Implementation and cost After sales support

8. Confidential Competition Who else is in the field (crowded market!?) The competitive edge Time and money to market

9. Confidential Technology and Intellectual Property Barrier to entry Time and money to market The team skills Development plan Patents Capital equipment Suppliers and long lead items

10. Confidential Financing Money should be raised when it is possible NOT only when it is needed Financing amount should provide 18-24 month of operations (minimal revenues) Budget planning – lean and Mean

11. Confidential Valuation The markets conditions have changes the valuations in the private market Trying to maximize valuations is distractive Do not price yourself out of the market The market will set the company value High value in private round is not a real achievement

12. Confidential The public markets – Back to reality No IPO market in the short run Qualifications for IPO – back to the basics IPO values will go back to the mid 90s M&A Currency will effect transactions Build to last not for sale!!

13. Confidential