1. ©2006 Affiliate Classroom, Inc. Business Overview Anik Singal, CEO Professionalizing the affiliate marketing industry.

2. ©2006 Affiliate Classroom, Inc.  2 Business Model Professionalize Affiliate Marketing through best practices training, tools and certification Leverage Web and Information Technologies to deliver products and services at scale To date, over 11,000 students trained online –Both Affiliate Marketers and Program Managers

3. ©2006 Affiliate Classroom, Inc.  3 What is Affiliate Marketing? “Affiliate” Website Online Retailer Commission 5 – 70% “Merchant” Traffic  Highest ROI Advertising Channel

4. ©2006 Affiliate Classroom, Inc.  4 Affiliate Marketing Explosion 1 Million + 5,000 + Affiliates Merchant Programs “Affiliate Marketing is a $95 Billion industry that is expected to grow to approximately $230 Billion by 2008.” 1996 2006

5. ©2006 Affiliate Classroom, Inc.  5 Online Marketing a $34B Market Affiliate Marketing Online Advertising (CPM) E-Mail Search $6.5B Other Digital Marketing $19 Billion $15.0B $5.5B $7.0B

6. ©2006 Affiliate Classroom, Inc.  6 Bigger Than Search Anne Holland “Affiliate Marketing will surpass Search Marketing by the end of 2008.” $7.00B* $6.50B Marketing Spend, by Source Search Marketing Affiliate Marketing Sources: Search, Google & Yahoo Financials; Affiliate Marketing, MarketingSherpa.com * Estimated

7. ©2006 Affiliate Classroom, Inc.  7 CPA: The Holy Grail CPA Very Low (Pay Only On Sale) Very High (Full Detail On Customer & Referrer) CPC Medium (Pay Per Visitor – No Sale Guaranteed) Medium (Knowledge of Campaign/Keyword) $7 Billion CPM High (No Guarantee Visitor or Sale) Very Low (Knowledge of only Campaign) $15 Billion (Fast Decreasing) Transparency Risk Total Invested $6.5 Billion (Fastest Growing)

8. ©2006 Affiliate Classroom, Inc.  8 Marketplace v1.0 Merchants AffiliatesNetworks Recruiting Tracking Accounting Lack of Transparency Efficiency (95/5 Problem) Best Practices Establishment Need For More Tools/Automation A CPA Channel Lots of Affiliates Increasing Sales Program Admission Commissions More Offers Great Support

9. ©2006 Affiliate Classroom, Inc.  9 Marketplace v2.0 MerchantsAffiliates Networks More Quality Affiliates More Transparency Tools/Training Lower Support Costs Better Offers Stronger Community Tools - Automation Higher Income More Transactions Lower Administration Costs Affiliate Quality Control

10. ©2006 Affiliate Classroom, Inc.  10 The 3 rd Party Solution The Affiliate Classroom Solution Content Industry Updates Best Practices Structured Training Modules eLearning & Tools Credentialing Professionalizing the affiliate marketing industry.

11. ©2006 Affiliate Classroom, Inc.  11 The Systematic Approach Affiliate Merchant Network Training & Tools Credentials

12. ©2006 Affiliate Classroom, Inc.  12 Multiple Streams of Revenue Our Main Goal: Center of the Affiliate Marketing Triangle Through Credentialing/Certification Multiple Streams of Revenue: 1.Certification – Value, Efficiency and Increase Performance Creation. 2.Training – Both Affiliates and Affiliates Managers (scalable virtual facility) 3.Tools – Recurring, Scalable (no matter level of expertise)

13. ©2006 Affiliate Classroom, Inc.  13 1. Value Creation for All Parties Affiliate Merchant Network Sales Support Cost Transactions Admin Cost Conversions Support Needs All Affiliate Sales 1% Total Revenue Estimated Total Revenue Potential $230 Billion (est. 2008, Forrester) X.01 -------------- $2.3 Billion Opportunity

14. ©2006 Affiliate Classroom, Inc.  14 Partners with Top Networks Alone Estimated Total Revenue $19,000,000,000 X.01 -------------- $190 Million Top NetworksTheir Revenue Commission Junction110,000,000 LinkShare200,000,000 Performics50,000,000 ShareASale5,000,000 Kowabunga5,000,000 CPA networks200,000,000 Total Revenue570,000,000 Total eCommerce: $570,000,000 /.03 = $19,000,000,000

15. ©2006 Affiliate Classroom, Inc.  15 2. Training & Tools Marketing Training & Tools Estimated 3 Million Affiliates Average Active Affiliate: Spends $3,180/Year On Business Training Hosting Domains Promotion Tools, etc… Assume We Blow It! Only 1% Market Share - 30,000 Affiliates - We Discount Same Services To $2,000/Year. Estimated Total Revenue $30,000 X 2,000 -------------- $60 Million/Year

16. ©2006 Affiliate Classroom, Inc.  16 All Together – Large Opportunity Certification Revenue: $19,000,000,000 X.01 $190 Million Tools Revenue $30,000 X 2,000 $60 Million + Total Revenue: $250 Million =

17. ©2006 Affiliate Classroom, Inc.  17 Training Pays Off! Average AC Student –11% increase in sales –3 less support requests per week Bottom Line –Both Merchants and Networks can see dramatic increases in sales and decreases in support cost.

18. ©2006 Affiliate Classroom, Inc.  18 What Students Are Saying… “I made $20,000 just because of ONE recommendation made by Affiliate Classroom…” Nana Gilbert-Baffoe “I just started…failed everywhere else, AC has helped me start earning over $500/month right away…” Evelyn Grazini “…Then I bumped into Affiliate Classroom…approval by Google Adsense immediately, 9.25% CTR, 20 subscribers a day…” Abhishek Agarwal

19. ©2006 Affiliate Classroom, Inc.  19 What Partners Are Saying… “If you want to see the future of affiliate marketing, just watch Affiliate Classroom… Kristopher Jones CEO We will definitely be recommending AC to our clients. Great job!” VP of Sales “Affiliate Classroom provides a service this industry desperately needs and is already benefiting from…” Shawn Collins CEO

20. ©2006 Affiliate Classroom, Inc.  20 AC Milestones January 2005 Affiliate Classroom v1.0 Training Facility Launch May 2005 Affiliate Classroom Surpasses 1,000 Members December 2005 Admitted to UMD VentureAccelerator Program May 2006 Established 1 st Relationship with Major Network June 2006 Affiliate Manager Training Course Launch (200 Customers in 14 Days)

21. ©2006 Affiliate Classroom, Inc.  21 Management Team Anik Singal: Founder & CEO –Affiliate marketer since 2001; selected as UMD Hinman CEO “Entrepreneur of the Year” in 5/’05; University of Maryland (Finance) Helen Montgomery: CCO - Chief Content Officer –With AC since inception; marketing and Internet editorial experience for various brick-and-mortar domains and many web-based properties – 10+ Years of experience. Richard Ruggiero: CFO –Multiple CFO roles in venture-backed startup companies including PowerPrecise Solutions. Senior management positions at General Electric and Newbridge Networks. Guidance from Venture Accelerator – Scott Laughlin, Scott Magids and Sarah Djamshidi

22. ©2006 Affiliate Classroom, Inc.  22 Financial Achievements/Goals 2004 – Launched BETA Site 2005 - $330,000 Revenue 2006 - $1,000,000 est. (300% Growth) 2007 – Reach Break-Even 2010 - $150M; 25% EBIT

23. ©2006 Affiliate Classroom, Inc.  23 Funding Requirements Current draft* models show $2M required to achieve break even Use of Proceeds –Key Team Hires (Technical Lead & Biz Dev) –Critical Technical Development (Version 2.0) –Initial Product Marketing –Working Capital * Additional modeling and planning required!

24. ©2006 Affiliate Classroom, Inc.  24 In Summary Affiliate Marketing: Highest ROI Form of Advertising Fastest Growing Online Marketing Channel $6.5B in Commissions “Set to Surpass Search Marketing by 2008” Substantial Problems Exist For Industry To Go The Next Level: Affiliate Classroom is the best positioned in the industry to help provide a solution.