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JEGIPressRelease

JEGI2012M&AOverview 2012M&AMarketShowsDramaticIncreaseinNumberandValueofDeals
NewYork,NYDecember28,2012Burgeoninginnovation,risingcorporateinvestmentandayearend rush to beat the tax man drove robust mergers and acquisitions in 2012 for the media, information, marketing and technology sectors. M&A surged to 1,351 transactions for the year, or 50% more than in 2011, at a total value of nearly $75 billion, according to The Jordan, Edmiston Group, Inc. (JEGI) (www.jegi.com), the leading independent investment bankspecializing in M&A advisory services across thesemarkets. This recordsetting volume was drivenprimarilybysmallerdeals,as approximately 90% of M&A transactions were less than $50 millioninvalue.However,14deals topped $1 billion for the year, includingsixinQ4. Over400ofthesetransactionsclosed in the fourth quarter, many in December, as sellers sought to beat the calendar on anticipated tax changes in 2013. Indeed, of seventeen transactions closed this year by JEGI, five closed the week beforeChristmas. Investmentintheinteractivemarkets,includingB2BandB2COnlineMedia&Technology,MobileMedia & Technology, and Marketing Services & Technology, continued to drive the bulk of M&A activity, accounting for 70% of all transactions for the year and 62% of value. Marketing automation companies wereingreatdemand,withacquisitionsbySalesforce,Adobe,OracleandExactTarget. ContinuedgrowthindigitaladspendinghelpedpropelthisavalancheofinteractiveM&A.Internetand mobileadvertisingrevenueintheU.S.reached$9.26billioninQ3,thelargestquarteronrecord,according totheInteractiveAdvertisingBureau(IAB).Thesefiguresshowedan18%climboverQ32011anda6% increaseoverQ22012. RandallRothenberg,PresidentandCEO,IAB,said,Thesehistoricinvestmentsininteractivepointtothe strong results that marketers are receiving from digital marketing. It is a highly effective medium for interacting and engaging consumers, who are no longer passive, but are active participants in contemporarymediaonline,throughsocialmedia,andonthegowithmobile. Whileinteractivecontinuestogrowrapidly,thebroadermediaandinformationindustrysawincreasesin M&Aacrossmoretraditionalsectors,suchasB2BMedia(up143%innumberofdealsandnearly8xin

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com

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deal value), Database & Information Services (up 40% and 87%), and Exhibitions & Conference (up 56% and94%). Healthcare Information & Technology, another hot area of investment, saw M&A deal activity increase 86%in2012,withmorethan$10billionofdealvaluefortheyear.ChrisCaltonrecentlyjoinedJEGIasa ManagingDirectortooverseethefirmshealthcareinformationandtechnologypractice. AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com
19 20 Apr12 Jul12 Facebook CorporateExecutiveBoard Instagram MobileMedia&Technology $715 $660 SHL(MVCCapital, Database&InformationServices HgCapitalandVSS) 10 11 12 13 14 15 16 17 18 Jul12 Apr12 Dec12 Jun12 Dec12 Apr12 Dec12 Sep12 May12 Hellman&Friedman VeritasCapital Nielsen Microsoft Equifax CerberusCapitalManagement Oracle RecruitCo. Salesforce.com 2 3 4 5 6 7 8 9 Jul12 Feb12 Aug12 Nov12 Nov12 Oct12 Oct12 Jul12 Dentsu AdventInternationaland GoldmanSachs CarlyleGroup ApolloGlobal Management Priceline.com PermiraAdvisers Experian RoperIndustries # 1 Date May12 Buyer AlibabaGroup

Top30LargestDealsof2012
Seller Yahoo'sStakein AlibabaGroup AegisGroup TransUnion Sector B2BOnlineMedia&Technology MarketingServices&Technology Database&InformationServices Size $7,100 $4,900 $3,305 $3,300 $2,648 $1,630 $1,544 $1,500 $1,390 $1,360 $1,250 $1,219 $1,200 $1,000 $950 $871 $750 $745

GettyImages B2BOnlineMedia&Technology (Hellman&Friedman) McGrawHillEducation EducationInformation&Technology (McGrawHill) Kayak Ancestry.com 30%ofSerasa B2COnlineMedia&Technology B2COnlineMedia&Technology Database&InformationServices

SunquestInformationSystems(Vista HealthcareInformation&Technology EquityandHuntsmanGayGlobal) 63%ofWoodMackenzie Database&InformationServices (CharterhouseCapital) ThomsonReuters' HealthcareInformation&Technology HealthcareBusiness Arbitron Yammer CSCCreditServices (ComputerSciencesCorp) 53%ofAT&TAdvertisingSolutions andAT&TInteractive Eloqua Indeed BuddyMedia MarketingServices&Technology MarketingServices&Technology Database&InformationServices B2COnlineMedia&Technology MarketingServices&Technology B2COnlineMedia&Technology MarketingServices&Technology

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28 29 30 Apr12 Jan12 Dec12 # 21 22 23 24 25 26 27 Date Oct12 May12 Jun12 Sep12 Jul12 Nov12 Aug12 Buyer Pearson PiramalHealthcareLimited WPP Publicis VitalizeConsultingSolutions(SAIC)

Top30LargestDealsof2012(continued)
Seller EmbanetCompass DecisionResourcesGroup (ProvidenceEquity) AKQA LBiInternational Sector EducationInformation&Technology HealthcareInformation&Technology MarketingServices&Technology MarketingServices&Technology Size $650 $635 $540 $540 $493 $460 $425 $424 $412 $390

EpsilonDataManagement (AllianceDataSystems) InsuranceServicesOffice (VeriskAnalytics) Intuit InternationalGameTechnology NASDAQOMXGroup

maxITHealthcare HealthcareInformation&Technology (Riordan,Lewis&Haden) HyperMarketing MarketingServices&Technology (LakeCapital) ArgusInformation Database&InformationServices (OakInvestmentPartners) Demandforce DoubleDownInteractive ThomsonReuters'InvestorRelations, PRandMultimediaSolutions MarketingServices&Technology B2COnlineMedia&Technology Database&InformationServices

LargestDealsof2012 TheMarketingServices&Technologysectoraccountedfornineofthe30largestdealsoftheyear,ledby DentsusagreementtoacquireglobaladvertisingnetworkAegisGroupfornearly$5billion,expectedtobe completedinQ12013.Otherlargemarketingservicestransactionsincludedtherecentlyannouncedbuy outofArbitronbyNielsenfor$1.22billionandMicrosoftsacquisitionofYammerfor$1.2billioninJune. TheDatabase&InformationServicessectoraccountedforsevenofthelargest30deals,includingthreeof theTop10,ledbythe$3.3billionbuyoutofTransUnionbyAdventInternationalandGoldmanSachsin February. B2C Online Media & Technology was active, accounting for five of the top 30 transactions for the year, including two Q4 deals: the Priceline acquisition of Kayak for $1.6 billion and Permira Advisers acquisitionofAncestry.comfor$1.5billion. The Healthcare Information & Technology sector saw four transactions make the Top 30 list for 2012, includingVeritasCapitalsacquisitionofThomsonReutersHealthcarebusinessfor$1.25billioninApril. TwoTop30dealsforB2BOnlineMedia&TechnologyincludedAlibabasbuybackofYahoosstakeinthe businessformorethan$7billion. StrategicAcquirersLeadtheWay Strategiccompanyacquirersaccountedfor24oftheTop30transactions,whiletheothersixwereledby private equity buyers. There were no repeat buyers on this list from last year, but the global agency AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com

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holdingcompanieswereactive,withDentsu,WPP,andPublicisrepresented.Largetechnologycompanies were also active buyers in 2012 acquisitions by Microsoft, Facebook, Oracle, Intuit, Priceline, and SalesforceallmadetheTop30. JEGICloseswithaFlurryofActivity JEGI closed six transactions in December 2012 and 14 deals in the second half of the year, bringing the yearstotalforthefirmto17.OnlytwoofJEGIsDecemberdealswereofficiallyannouncedbeforeyear end:thesaleofIntentMedia,aleadingproviderofnewsandinformationfortheEuropeanentertainment andtechnologymarkets,toNewBayMedia, aWicksGroupportfolio company;andthesaleofEmpathy Labs,adigitalstrategyandmultichannelexperiencedesignfirmandportfoliocompanyofALC,toEPAM Systems.ThebalanceofthesetransactionswillbeannouncedinearlyJanuary. Withthelate2012surgeindealactivitypropelledinpartbyconcernsoverimminenttaxcoderevisions, JEGIexpectsthatQ12013willbequieterthanthesepastsixmonths.However,severalkeyfactorsinthe marketplaceindicategoodprospectsforahealthyM&Amarketintheyearahead: Bothstrategiccompaniesandprivateequityfirms,whichcontinuetoholdunprecedentedlevelsof cashandfaceslowerorganicmarketexpansion,willcontinuetoacquireforgrowthandreturn. Privateequityfirms,whichraisedrecordamountsofcapitalin2007($313billion)and2008($312 billion),aregenerallysubjecttofiveyearinvestmentwindows,sotheywillbelookingtoputtheir capitaltowork. Additionally,PEfundsareexpectedtocontinuedivestingcompaniesacquiredfrom2006to2008, astheytypicallyseektoexitportfoliocompaniesfivetosevenyearsafteracquiringthem. Lenders continue to seek out opportunities to finance acquisitions of companies with at least $10 millionofEBITDA,withastrongpreferenceforcompanieswithstrongrecurringrevenuestreams, musthaveinformation,andtechnologydrivenmodels. The media and technology markets continue to expand much more rapidly than the general economy.Withtheriseofmobileviahandhelddevicesandtablets,aswellasnewformatsinsocial andvideo,interactiveadvertisingrevenueshouldcontinueitsstronggrowthinthemonthsahead. CompanieswillincreasinglyturntoM&Atoenhanceandretooltheircapabilities,recruittalentand generateadditionalrevenuestreams.

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com

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Media,Information,Marketing&TechnologyM&AActivity
2012 JanuaryDecember IndustrySector B2BOnlineMedia&Technology B2COnlineMedia&Technology BusinesstoBusinessMedia ConsumerMagazines Database&InformationServices EducationInformation,Technology&Training Exhibitions&Conferences HealthcareInformation&Technology MarketingServices&Technology MobileMedia&Technology Total
Source:JEGITransactionDatabase

2011 JanuaryDecember No.of Value Deals (millions) 63 214 14 32 42 59 32 84 291 72 903 $5,965 $7,598 $50 $3,200 $6,113 $2,870 $451 $8,948 $15,063 $1,961 $52,219 %Change No.of Deals 33% 18% 143% 34% 40% 8% 56% 86% 67% 72% 50% Value 100% 33% 731% (91%) 87% 83% 94% 17% 36% 77% 43%

No.of Value Deals (millions) 84 252 34 43 59 64 50 156 485 124 1,351 $11,957 $10,088 $411 $277 $11,450 $5,255 $874 $10,461 $20,501 $3,468 $74,742

M&AHighlightsfor2012 Dealvaluefortheb2bonlinemediaandtechnologysectordoubledtonearly$12billionin2012,on84 announced deals. A majority of the value was driven by two of the largest transactions of 2012: Chinese B2B marketplace Alibaba reacquired Yahoos interest in the company for $7.1 billion; and Carlyle Group purchased Getty Images, a creator and distributor of visual and digital content, from Hellman & Friedman for $3.3 billion. In Q4, the most notable deals were Adobes acquisition of Behance,asocialonlineplatformwhereartistscanshowcaseanddiscovercreativework;andeFronts acquisition of Investment Caf, provider of a suite of Webbased financial reporting and fundraising productstothealternativeassetcommunity,for$50million. B2c online media and technology was the second most active sector for M&A in 2012, with 252 transactionsatatotalvalueof$10.1billion.Thenumberofdealsandvalueincreased18%and33%, respectively,versus2011levels.Q4sawPriceline.comsacquisitionofKayak,anonlinetravelsite,for $1.6billion;theacquisitionbyPermiraAdvisorsofAncestry.com,agenealogywebsite,for$1.5billion; thej2GlobalacquisitionofZiffDavisMedia,amediacompanyfocusedonthetechnologymarketand aGreatHillPartnersportfoliocompany,for$175million;andthemanagementbuyoutsofExperians onlinepricecomparisonandleadgenerationsitesPriceGrabber,LowerMyBillsandClassesUSA. M&Aincreasedstronglyinthebusinesstobusinessmediasector,afterseveralyearsoflittleactivity. Thesectorsaw34dealsatatotalvalueof$411million,whichrepresenteda143%increaseinnumber of deals and a more than 8x rise in deal value over 2011 levels. Notable deals in Q4 included the PentonMediaacquisitionofFairfaxMediasFarmProgress,whichprovidesfarmfocusedeventsand

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com

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magazines,fornearly$80million;NewBayMediasacquisitionofIntentMedia(asnotedabove);and ReedElsevierssaleofVarietytoPenskeMedia.

The consumer magazines sector saw a 34% increase in number of deals, but a sharp decline in deal value, as there were no $100+ million transactions in this sector in 2012. Throughout the year, acquisitions in this sector were primarily of small publishing companies and individual magazines. ThistrendheldinQ4,whenGrindMediaacquiredRyanCommunicationsGroup,apublisherofDirt Sports and OffRoad Industry magazines andModern Luxury acquired Aspen Magazine from Ridge Publications. Thedatabaseandinformationservicessectorsawthenumberandoverallvalueofdealsincrease40% and87%,respectively,in2012,withnearly$11.5billionoftotaldealvalue.Sevendealsofmorethan $100millioninvalueclosedinQ4,includingthe:Experianacquisitionof30%ofSerasa,theBrazilian credit data provider, for $1.5 billion; Equifax acquisition of CSC Credit Services, a provider of consumercreditservicesandrelatedinformation,fromComputerSciencesCorporationfor$1.1billion; NASDAQ OMX Group acquisition of Thomson Reuters Investor Relations, Public Relations and Multimedia Solutions businesses for $390 million; sale of Infogroups OneSource, a provider of sales enablement and business intelligence SaaS solutions, to Cannondale Investments and GTCR; and LeonardGreen&PartnersacquisitionofInvestcorpsCCCInformationServices,workflowtoolstothe insuranceautomotiveclaimsandcollisionrepairindustries. Theeducationinformation,technologyandtrainingsectorsaw64transactionsannouncedatatotal valueofmorethan$5billionin2012,representingan8%uptickinnumberofdeals,butan83%risein deal value versus 2011. Notable deals in Q4 included the Apollo Global Management acquisition of McGrawHill Education, a publisher of textbooks and other materials, for $2.6 billion; Pearsons acquisition of EmbanetCompass, online educational services, for $650 million; and the sale of Adam MatthewDigital,acreatorofonlineresourcesforuniversityresearch,toSAGE. Theexhibitionsandconferencessectorsawincreasedactivityin2012,with50transactionsatatotal value of $874 million, representing increases of 56% and 94%, respectively, over 2011 levels. In Q4, notabledealsincludedtheAdvanstarCommunicationsacquisitionofENKInternational,anorganizer of fashion events, from Forstmann Little; ITE Groups acquisition of Asian Business Exhibitions and Conferences, a producer of 19 events across 11 verticals led by construction, for $22.5 million; and GeorgeLittleManagementsacquisitionoftheeventsgroupsofVerticalWebMedia,withconferences intheInternetspace,suchasInternetRetailerConference&Exhibition. In 2012, the healthcare information and technology sector was the third most active for M&A, with 156 transactions for the year, representing an 86% increase over 2011 levels. Deal value rose a more modest 17% in 2012, to more than $10 billion. Q4 saw four deals with over $100 million of value, including: the Nuance Communications acquisition of J. A. Thomas & Associates, healthcare compliance and documentation improvement solutions, for $265 million; McKessons acquisition of MED3000,healthcaremanagement,operations,andinformationtechnologyservices;theacquisitionby Conifer Health Solutions of Dells Revenue Cycle Solutions Line of Business for Hospitals and AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com

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Healthcare Systems; and the Ferrer Freeman acquisition of Arcadia Solutions, datadriven Health IT services. Other active acquirers in the sector in Q4 included Hearst Corporation, Wolters Kluwer, DiversifiedCommunications,AccentHealth,DecisionResources,andHealthstream,amongothers. ThemarketingservicesandtechnologysectorcontinuestoleadinM&Avolumeandvaluewith458 transactions announced for the year, at a total value of more than $20 billion, up 67% and 36%, respectively,over2011.Q4sawanumberofnotabletransactions,includingthe: NielsenacquisitionofArbitron,amediaandmarketingresearchfirm,for$1.2billion; OracleacquisitionofEloqua,whichoffersondemandrevenueperformancemanagementsoftware, for$871million; Epsilon acquisition of Lake Capitals Hyper Marketing, a marketing services network, for $460 million; Quad/Graphics acquisition of Vertis, a provider of targeted advertising, media, and marketing solutions,for$258million; InterMedia Outdoor acquisition of Outdoor Channel Holdings, an entertainment and media companyservicingtheoutdoorandlifestylesegments,for$214million; ExactTarget acquisition of Pardot, a marketing automation company, for approximately $95 million; EPAMSystemsacquisitionofEmpathyLabs,adigitalstrategyandexperiencedesignfirm; WarburgPincusacquisitionofCROSSMARK,aproviderofsalesandmarketingservices; AOLacquisitionofBuysight,aretargetingandonlineretailleadgenspecialist; Nielsen acquisition of SocialGuide, which offers analysis of social media conversations about TV programs; Accenture acquisition of avVenta Worldwide, a provider of interactive marketing production services;and Seacrest Global acquisition of Civic Entertainment Group, a provider of experiential marketing, strategicmarketingpartnerships,socialcampaignsanddigitalandsocialmedia. Other active acquirers in the quarter included many of the global agency and market intelligence holding companies, such as WPP, Publicis, Omnicom, GfK, and Aegis Group, as well as newer competitors in marketing services like Gannett, Rakuten, Sapient, INFOR, Advisory Board, Zillow, Google,Microsoft,andUBM. The mobile media and technology sector saw 124 deals at a total value of $3.5 billion in 2012, representing increases of 72% and 77%, respectively, over 2011 levels. Games and applications continuetodriveM&Aactivityacrossmobile,primarilyledbystrategicacquirers,giventhesmallsize andlowEBITDAdynamicsofthesector.ThelargestdealofQ4wasGreesacquisitionofPokelabo,a developerofsocialmobilegames,for$174million.ViggleacquiredGetGlue,asocialTVapplication,

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com

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for$79million.Active acquirers inthesectorincludedGoogle,Bertelsmann,Twitter,Yahoo,Zynga, MediaMath,andUrbanAirship,amongothers. AboutJEGI TheJordan,EdmistonGroup,Inc.(JEGI)ofNewYork,NY,theleadingindependentinvestmentbankfor the media, information, marketing and technology sectors, celebrated its 25th anniversary in 2012. Since 1987, JEGI has completed more than 500 highprofile M&A transactions for global corporations; middle market and emerging companies; entrepreneurs; families; and private equity and venture capital firms. Formoreinformation,visitwww.jegi.com. ###

AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com