GE Capital

Technology & Business Services 1Q10

Industry Research Monitor
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CONTENTS: Industry Headlines/Macro Environment Other Industry News & Developments Technology Industry Financing Activity Transaction Capabilities & Conference Calendars 1 2 7 9

Technology Industry Headlines
• Following a decline of 4.5% in 2009, IDC says worldwide tech spending is on track to increase 3% in 2010. In the United States, IT spending growth is forecast to underperform emerging economies but outperform most other developed regions. • President Obama named Howard Schmidt as the new U.S. cybersecurity czar. Most recently, Schmidt served as president of the Information Security Forum and arrives at the White House with 40 years of experience including serving as the White House security advisor to George W. Bush, as well as long-held positions at eBay and Microsoft. • After a 2% drop in 2009, global retail consumer electronics sales are expected to be flat in 2010, according to the Consumer Electronics Association. That follows growth of 14% in both 2007 and 2008, and 17% growth in 2006. • Microsoft named Peter Klein as the company’s CFO following the departure of Chris Liddell at the end of 2009.

Macro Environment
2009 was no doubt one of the most volatile on record for the technology industry. The collapse in demand to finish 2008 followed through into 2009 until hitting bottom in the early part of the year. Since that bottom about a year ago, demand for technology infrastructure has shown a marked turnaround with accelerating improvement through the end of 2009. Yearover-year growth is now commonplace albeit against weak comparisons. The 3rd and 4th quarters of 2010 will offer a more valid test of the durability of this IT spending recovery. Not surprisingly, the confidence of senior executives in the IT industry has also been on the upswing. Results of a survey of industry executives conducted by GE Capital late last year showed that Tech CEOs were the most optimistic across all industries with 77% of the respondents expecting growth in 2010, forecasting on average revenue growth of 10%. IT Spending in U.S. – Strong acceleration to finish 2009
U.S. IT Equipment & Software Capex (1Q05 – 3Q09) 20 15
Quarterly Change SAAR (%)

10 5 0 -5 -10 -15 -20
Source: Bureau of Economic Analysis

• Rackspace confirmed that a server in one of its data centers was hit in a massive cyberattack that apparently originated in China and targeted Google and at least 20 other companies. The cyberattack aimed to steal proprietary code and intellectual property. • Worldwide PC shipments topped 90 million units in Q4, increasing 22.1% from a year ago, according to data from Gartner.

-25
05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Michael H. Zimm, CFA SVP, Senior Research Analyst 646-428-7015 • Michael.Zimm@ge.com

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GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

Software/IT Services
Steady and reliable. Software and IT Services on average remain the most resilient technology sectors to macro headwinds. That being said, the growth in these sectors during 2010 may not keep pace with the rebound expected in the more severely depressed hardware sector. IDC’s most recent constant currency forecast for 2010 calls for overall global spending on software and IT services to be 2% and 3%, respectively compared to 5% growth in hardware. This subdued growth outlook for software and services spending reflects a relatively higher base compared to hardware coupled with the lower value of contracts signed in the past year and continued caution toward new project-based spending in mature economies. Nonetheless, within software and services, we continue to observe positive momentum around the recession-induced themes of improved efficiencies via transformative architectures such as Virtualization, XaaS and Cloud Computing as well as solutions tied to security and increasingly stringent regulatory oversight.

Strategic Updates
• Accenture suffered a legal defeat on all of the preliminary issues in a case it is defending against British Gas’ parent company, Centrica. Centrica is claiming approx. $300m in relation to the alleged failure of a customer billing system. • Computer Sciences entered into a 10-year master service agreement with Zurich Financial Services. • Advent Software announced further expansion into the Asia-Pacific region with the opening of a new office in Beijing. • HP Enterprise Services entered into a seven-year infrastructure services agreement with Eli Lilly. • TeleCommunication Systems and Sybase agreed to settle two patent infringement lawsuits. • The U.S. State Department awarded CGI Federal a 10-year blanket purchase agreement with a ceiling of up to $395 million. • McAfee Inc. and Facebook have announced a partnership to provide additional security protection to the more than 350 million Facebook users. • Microsoft will begin charging for its cloud services development platform Azure.

• IBM is also buying National Interest Security, a privately held company intended to strengthen IBM’s position in the public sector IT market. • Microsoft acquired Sentillion Inc., a privately held company specializing in software for the healthcare industry. Microsoft also acquired Opalis, a provider of datacenter process automation software. • Oracle acquired Silver Creek Systems, Inc. a provider of product data quality solutions. • Lawson Software acquired Healthvision Solutions, an application and services provider to the healthcare industry for $160 million cash. • BMC Software acquired privately held Phurnace Software, a developer of automation software. • CA acquired privately held Oblicore, a developer of service level management software. • TIBCO Software acquired privately held Foresight Corporation, a provider of transaction automation solutions and EDI productivity tools. • VMware acquired Zimbra, a vendor of open-source email and collaboration software, from Yahoo! Inc. • Symantec acquired Gideon Technologies, a provider of security content automation technology. • CACI International acquired SystemWare, Inc., a provider of physical and cybersecurity solutions. • SRA International, Inc. acquired privately held Perrin Quarles Associates (PQA), Inc., specializing in environmental program development and implementation for air quality and climate change. • Informatica acquired Siperian for $130 million cash. Siperian provides Master Data Management (MDM) infrastructure technology. • Unisys sold its health information management business to Molina Healthcare for $135 million cash. • Digital River and Softonic, a European software download site, announced a strategic partnership, which includes Digital River acquiring a less than 15 percent ownership stake in Softonic for $26m cash.

Management Changes
• SAP’s CEO Leo Apotheker resigned after his contract was not renewed. SAP will now be run by two co-CEOs who have been promoted internally: Bill McDermott, the company’s head of field organization, and Jim Hagemann Snabe, head of product development. • IBM Lotus GM Bob Picciano has been promoted to GM of all software sales at IBM. Alistair Rennie, previously vice president of Lotus development and support, has taken over the IBM Lotus GM post. • Mischel Kwon resigned as director of the Homeland Security U.S. Computer Emergency Readiness Team and is moving to EMC’s RSA security division. • CA has tapped board member William E. McCracken to be the company’s new CEO and chairman.

Mergers & Acquisitions
• IBM acquired privately held Guardium, a provider of realtime enterprise database monitoring and protection technology. IBM also purchased privately held Lombardi, which makes software for streamlining product planning, human resources, procurement and supply chain management.

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© Copyright 2010 General Electric Capital Corporation. All Rights Reserved.

GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

Semi/Capital Equipment
Above average seasonality. According to data from the Semiconductor Industry Association (SIA), worldwide semiconductor sales during 2009 were $226.3 billion, down 9% from 2008. The three-month moving average of sales in December increased 29% from December 2008 but declined 1.2% month-month from November. Sales in the final quarter of 2009 were supported by healthy demand in a variety of end markets including PCs, cell phones, and consumer electronics. Following a strong finish to 2009, a return to normal seasonal patterns suggests a modest slowdown in the first quarter of 2010. For all of 2010, unit sales of personal computers and cell phones, which account for approximately 60 percent of total semiconductor consumption, will grow in the low-to-mid teens. A rebound in enterprise spending on IT hardware will also add to the foundation of industry growth. Overall, the SIA continues to expect global growth of semiconductor sales to increase 10.2% and 8.4% in 2010 and 2011, respectively. Given severe reductions in capex spending over the past two years, optimism for a strong rebound in demand for semi-cap equipment continues to build. Industry bellwethers such as Intel (+20%), TSMC (+77%) and Texas Instruments (+40%) have all announced large increases in their equipment capex spending plans for 2010. Powerful V-shaped recovery in semiconductor sales…
24
Source: SIA

• The U.S. International Trade Commission ruled that Nvidia is violating three patents owned by Rambus. • Samsung Electronics and Rambus announced an agreement settling all legal claims between them. Samsung will also invest $200M in Rambus stock. • Applied Materials announced that several of its employees, including the former head of Applied Materials Korea, were arrested in South Korea. Applied said the arrests were related to a “criminal investigation into the alleged improper receipt and use of a customer’s confidential information.” • The U.S. Attorney for the District of Columbia announced that the owner of MVP Micro, Inc., has entered a guilty plea to the charge of trafficking in counterfeit semiconductors.

Mergers & Acquisitions
• Applied Materials acquired Semitool for $364 million in an all-cash transaction. • Semtech acquired Sierra Monolithics for $180m. • DDi Corp. acquired Coretec Inc. for approx. $23.5m. • Broadcom acquired privately held Dune Networks for approximately $178 million cash. • ON Semiconductor acquired California Micro Devices for an enterprise value of approx. $63 m. • Trident Microsystems acquired selected assets of the television and set-top box business lines of NXP. • Broadcom acquired Teknovus for $123 million cash. • Microchip Technology acquired Silicon Storage Technology for $2.85 a share in cash. The deal trumps a previous agreement for SSTI to be acquired by Technology Resources Holdings for $2.10 a share.

30% 20%

Monthly Global Semi Sales $Bs

22 20 18

0% -10% 16 14 12 Monthly Global Semiconductor Sales $B Y/Y % Change -20% -30% -40%

Y/Y % Change

10%

Management Changes
• Veeco Instruments Inc. named David Glass Chief Financial Officer. Glass replaces John Rein, who announced his retirement from Veeco last year. N/A Semiconductor Capital Equipment Book-to-Bill Seasonality beginning to exert pressure
1.60
Source: SEMI

-0 D ec

5

-06 D ec

-07 D ec

-08 D ec

-09 D ec

Strategic Updates
• IBM launched the latest version of its Power processors, which it claims will lay the foundation for companies’ green IT efforts. The Power 7 chips, reportedly use a quarter of the energy used by the Power 6, but offer double the performance. • Intel cancelled its Larrabee graphics chip launch. • The U.S. Federal Trade Commission filed suit against Intel for allegedly using illegal tactics to shut out competitors such as Advanced Micro Devices. • An antitrust probe of Rambus was dropped by the E.U. after the company pledged to cap royalty fees for DRAM memory chip patents.

1.40 1.20
Monthly Book-to-Bill

1.00 0.80 0.60 0.40

Parity c

0.20 09 10 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 J an J an J an J an J an J an J an J an J an J an J an J an J an- J an-

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GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

Systems/Storage
Consumer ahead of the enterprise. Publically traded systems and storage vendors generally reported typical seasonal strength quarter-over-quarter during the recently reported 4th quarter of 2009. However, the results generally seemed a bit lackluster on a year-over-year (constant currency) basis despite relatively easy comparisons. While consumer related spending for PCs and related peripherals has been on the upswing, systems manufactures continue to fight the headwinds of constrained corporate capex budgets coupled with the deflationary pressures of virtualization and commoditization in the data center. While the hardware sector was hit the hardest during the recent downturn, the segment is now well positioned for growth from a low level as enterprises begin to reverse the trend of extended lifecycles from severe underinvestment over the past few years. The environment for leasing of IT assets should also be favorable as companies continue to look for ways to conserve cash outlays while maintaining leading edge capabilities. Several fundamental indicators confirm the optimistic views of OEM executives that the systems and peripherals sector is well into a recovery. The IPC North American printed circuit board book-to-bill ratio has been above parity (1.0) since May and stands at 1.04 as of December, down from a recent peak of 1.08 in September. While still comfortably positive, the book-to-bill ratio typically peaks in the Sep-Dec timeframe and we would not be surprised to see it dip below parity for several months prior to the next seasonal cycle upswing expected in the middle of the year. The book-to-bill ratio leads sales in the PCB industry by an average of three to six months and PCBs in turn lead sales of OEM equipment. Printed Circuit Board Book-to-Bill Eight consecutive months above parity
1.4
Source: IPC

Strategic Updates
• Hewlett-Packard and Microsoft said they would invest $250M in a partnership to more tightly couple their software and hardware products, as rivals Oracle, IBM and others remake themselves as one-stop shops for technology. HP and Microsoft said that the three-year agreement would involve an array of initiatives; all aimed at helping businesses reduce some of the headaches of setting up and operating data centers. • NetApp and Microsoft unveiled a formal technology collaboration designed to ensure that NetApp’s storage works well with Microsoft applications and its Hyper-V virtualization technology. • Oracle’s CEO Larry Ellison stated explicitly that Oracle will focus Sun server sales on “high-value, high-performance” applications such as private clouds and won’t compete directly with Dell and HP. • ioSafe has announced what it calls “the world’s first solid state external hard drive built to protect data from building collapse, fires, and floods. • Cisco, VMware and NetApp have signed a technology pact to deliver new architectures for increasing data center efficiency, flexibility and security. The agreement follows a similar deal between EMC, Cisco and VMware to support Cisco’s UCS strategy of bringing server, storage and networking technologies into a single architecture on which data centers can be built. • CommVault has added REST, a protocol that interfaces with multiple cloud storage vendors’ offerings, as a way to help its customers easily connect to public storage clouds. • QLogic has sued Emulex accusing it of false advertising, unfair competition and trade libel.

Mergers & Acquisitions
• EMC Corporation acquired Archer Technologies, which will be incorporated into its RSA division. • Dot Hill acquired Cloverleaf Communications Inc., a privately held provider of advanced heterogeneous storage virtualization and unified storage technologies for $12 million in cash and stock. • Celestica acquired Invec Solutions, a provider of warranty management, repair, and parts management services.

N.A. PCB Book-to-Bill Ratio

Management Changes
• Sun Microsystems chief executive officer Jonathan Schwartz resigned his position in a Twitter post phrased in the form of a haiku poem. • NetApp announced the appointment of Christine Heckart as its new Chief Marketing Officer.

-99 eb-00 Feb-01 eb-02 eb-03 Feb-04 eb-05 eb-06 eb-07 eb-08 eb-09 Feb-10 F Feb F F F F F F F

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GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

Distribution Channels
Riding a rising tide. Publically traded distributors generally reported much better than expected financial results for the December/January ending quarter and conveyed an ongoing sense of optimism amid stronger than normal seasonal trends, lean supply chain inventories and recovering IT spending. Channel management commentaries on overall business conditions remain decidedly positive compared to several quarters ago and strategies continue to reflect a transition from defense to offense. Overall revenue (excluding acquisitions) during the final quarter of 2009 exhibited above average seasonal quarterover-quarter strength and more importantly showed yearover-year growth for the first time since 3Q08. The overall stronger than expected revenue growth was magnified by recent restructuring actions resulting in margin expansion and profit growth that outpaced top-line growth. Looking ahead to the 1st calendar quarter of 2010, channel players are expecting typical seasonal sequential declines in revenue albeit with a continuation of meaningful year-over-year growth.

Strategic Updates
• Microsoft and Intuit are teaming up to make it easier for developers to build SMB-focused software-as-a-service applications that integrate with QuickBooks. • HP Financial Services has re-introduced a zero-percent financing program for SMB customers. Qualifying transactions for the program are between $1,500 and $150,000 for 12 months. • Avnet Technology Solutions has been selected to carry Cisco’s data center products in the United States and Canada, including Cisco’s Unified Computing System blade server. Avnet joins specialty distributor Westcon Group and broadline distributors Ingram Micro and Tech Data as distributors of Cisco’s Unified Computing System. • IBM Global Financing has signed a financing deal with Advanced Micro Devices and its distributor network in China. In conjunction with this new factoring license, IBM Factoring (China) Company Limited, entered into an agreement with AMD to factor AMD sales receivables in China. • IBM said it would spend $130 million on marketing and demand-generation programs this year to help channel partners expand their midmarket sales. As part of this effort, IBM plans to develop “building block” systems, incorporating IBM hardware, software and storage technology, which solution providers can customize and sell to midmarket customers. IBM also plans new channel cloud Architecture Certifications where partners can learn to design public and private cloud computing solutions based on the IBM products they sell.

• Increasing competition between Cisco and HP has led to Cisco announcing that it will not renew its systems integrator contract with HP. As a result, HP will no longer be a certified reseller or service partner of Cisco’s after April 30. • Ingram Micro has expanded its relationship with Transcend Information to include the U.S. • Blade Network Technologies announced that Bell Micro will distribute Blade’s 10 Gigabit Ethernet RackSwitch product family in North America. • IBM said it will pass nearly all new midmarket software sales leads, valued up to $50,000, to its Authorized Software resellers. • Avnet and Arrow will distribute Riverbed products in North America for the first time. • Oracle said it will rely on direct sales of Sun Microsystems server and storage hardware systems to large accounts, reversing Sun’s trend of selling more products through channel partners. Oracle will continue to rely heavily on partners for sales to midmarket customers. But the emphasis will be on working with resellers that provide integration services and other “specializations.” • Cisco Capital announced an extensive, no interest financing promotion for Cisco products and services ($1,000 up to $250,000) sold through Cisco certified resellers to U.S. small and medium-sized business. • Avnet Technology Solutions launched a suite of services under its SolutionsPath program, all designed to help VARs enhance their offering. • Tech Data has entered into an agreement with TechTurn to offer hardware recycling and refurbishment to resellers.

Mergers and Acquisitions
• Arrow Electronics acquired A.E. Petsche Company, a provider of interconnect products to the aerospace and defence markets. • Datalink acquired reseller Incentra for $8.8m cash. • Presidio acquired Coleman Technologies. The combined companies will create a solution provider with more than $1.1 billion in revenue. • Autonomy Corp. acquired MicroLink LLC for $55 million in cash. MicroLink is an Autonomy reseller targeting U.S. state and federal government accounts.

Management Changes
• SAP named Kevin Gilroy head of the North America channel for SME (small and midsize enterprise). • Insight Enterprises named Ken Lamneck as its new president and CEO. Lamneck served as president of the Americas at Tech Data since 2004. • Kaspersky Lab named Nancy Reynolds as senior vice president of corporate sales. Previously, Reynolds was Dell’s top global enterprise channel executive. • Websense channel chief David Roberts has resigned amid an overhaul of the company’s channel strategy.

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GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

Business Services/ Financial Technology
Consumer deleveraging continues. Recent operating statistics from both Visa and MasterCard continue to show a pattern of growth in debit coupled with a recession-induced contraction in credit. During 2009, Visa posted U.S. debit payment charge volume of $883 billion, up 7.9% from $818 billion in 2008. Visa debit payment transaction volumes were 23.9 billion, up 13.8% from 21 billion in 2008. Conversely, Visa credit payment volume fell 7.3% to $764 billion from $824 billion, while the number of credit transactions declined 2.4% to 9.04 billion from 9.26 billion in 2008. For all of 2009, MasterCard reported that U.S. debit purchase volume rose 5.8% to $327 billion from $309 billion while debit payment transaction volume rose 11.7% from 7.46 billion to 8.34 billion transactions in 2008. Similar to Visa, MasterCard credit card purchase volume declined to $477 billion, down 12.9% from $547 billion in 2008, on 5.91 billion transactions, down 5.8% from 6.27 billion.

• MoneyGram International and Bank of China entered into an agreement to bring MoneyGram money transfer services to Bank of China’s 10,000 domestic branches. • Affiliated Computer Services won a contract to process child support payments for the State of Ohio. The contract has a potential term of nine years and is worth $163 million if all option years are exercised.

Mergers and Acquisitions
• Global Payments sold its DolEx- and Europhil-branded money transfer businesses to an affiliate of Palladium Equity Partners LLC. • Intuit agreed to sell Intuit Real Estate Solutions to Vista Equity Partners for approx. $128 million cash. • SS&C Technologies acquired TheNextRound Inc., a provider of software services for the private equity and alternative investment communities. • ADP acquired DO2 Technologies, a provider of electronicinvoicing services. • Genpact, acquired Symphony Marketing Solutions, a provider of analytics and data management services specializing in the retail, pharmaceutical and consumer packaged goods industries. • Manpower acquired Comsys IT Partners for approx. $430 million including assumed debt, creating an informationtechnology staffing concern with total revenue of more than $2.5 billion. • Private equity firm Marlin Equity Partners acquired certain parts of Unisys’ payment systems business.

Strategic Updates
• Convergys plans to recruit approximately 4,500 additional agents through the end of February 2010 for its 12 contact centers in the Philippines. • CSG Systems International entered into a new multiyear agreement with DISH Network. • A federal court judge rejected Heartland Payment Systems’ request for a preliminary injunction that sought to prevent VeriFone Holdings from communicating with Heartland merchants. • VeriFone has launched a major strategic initiative targeted at leveraging the company’s current and future payment assets into the payment-enabled media marketplace. The company is also revamping its taxicab technology to include IP-connected Flash 10 technology and dynamic content generation capabilities, with plans to launch the technology in all its New York City taxicabs by June 2010. • LML Patent Corp. and RBS Citizens Bank NA have entered into a settlement and license agreement that provides RBS Citizens with a license to LML’s patents for electronic check conversion transactions. • Global Axcess signed a 16-month contract with a grocery store chain based in the U.S. Southeast. The contract is valued at $16,000 per month, covers 72 ATM locations and upgrades the customer from an in-house processing system to a full-turnkey Global Axcess program. • Heartland Payment Systems said it agreed to a settlement under which issuers of Visa-branded credit and debit cards will have an opportunity to obtain a recovery from the company regarding losses they may have incurred from a 2008 criminal breach.

Management Changes
• SunGard Data Systems appointed Robert Woods CFO. • Alliance Data Systems appointed Charles Horn CFO. • Hewitt Associates said that CFO John Park has decided to leave the company in early 2010 to pursue “new career challenges.” • Investment Technology Group CFO Howard Naphtali has retired. • Convergys Corp. said that David Whitwam resigned from its board at the end of 2009. The company also named Jeff Fox president and CEO. • Diebold named Charles Ducey Jr. executive vice president of North America operations. Diebold also promoted James Chen to executive vice president of international operations. • Infosys Technologies appointed D. Swaminathan CEO of Infosys BPO Ltd., succeeding Amitabh Chaudhry, who resigned in November 2009. • Fiserv said Peter Kight plans to resign as vice chairman at the end of the first quarter.

6

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GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

Technology Financings
“Safety” remains a balance sheet priority. Despite expectations for increasing M&A activity and sales during 2010, the majority of technology company CFOs will probably not seek external financing this year. According to a new survey by accounting firm BDO Seidman, approximately onethird (32%) of tech CFOs anticipate seeking additional capital in 2010, which is slightly fewer than in 2009 (34%) and slightly more than in 2008 (27%). While the availability of capital continues to improve, some tech CFOs are still reluctant to assume more debt in an uncertain economy. Others may need less capital as a result of cost-saving strategies implemented in 2009. Of those who anticipate raising capital this year, 47 percent will focus primarily on private equity, down from 56 percent in 2009, but up from 33 percent in 2008. More than one third (37%) will use debt, and the remaining 16 percent will focus on public equity. Companies without international operations are much more likely to use debt (53%), while international firms will focus more on private equity (64%) than their domestic-only counterparts. Notable recent financings include the following: • Xerox completed a $2 billion senior unsecured notes offering. Xerox intends to use the proceeds in connection with the acquisition of Affiliated Computer Services. • Brocade sold $600 million of senior secured notes in a private placement. • Salesforce.com closed a private placement of $575 million unsecured, unsubordinated convertible senior notes due 2015. • Spansion completed a $450 million term loan related to the company’s attempted exit from bankruptcy. • PRGX Global Inc. entered into a four-year $30 million secured revolving credit and term loan agreement. • Kemet Corp. plans to offer $275 million in aggregate principal amount of senior notes due 2018. Technology Loan Pricing in Secondary Market Almost back to “normal”
110
Source: Thomas Reuters SMi Index as on Feb. 10, 2010

Tech & Electronics Global High Yield Issuance ($Billions) Dominant source of external capital in 2009
60 Total Deal Volume (USD $B)
$52.1

700 600 500
$33.6

50
Total Deal Volume (USD $B)

Average Deal Size (USD $M)
Source: Capital IQ $42.1 $42.6

40 400 300 20
$13.8

30

200
$10.5 $10.2

10 $10.0 0 2002 2003

100
$4.4

2004

2005

2006

2007

2008

0 2009 YTD 2010

Tech & Electronics Global Equity Issuance Strong rebound in 2009
20
Source: Capital IQ $16.8 $16.3 $14.2 $12.3 $10.4 $12.2

200

Total Deal Volume (USD $B)

15

150

10

$9.7

100

5

Total Deal Volume (USD $B) Average Deal Size (USD $M)
$1.8 $0.2

50

0 2002 2003 2004 2005 2006 2007 2008 2009 YTD 2010

0

Tech & Electronics Global Loan Issuance Private equity slowly re-emerging
300 Total Deal Volume (USD $B) 250 Average Deal Size (USD $M)
$220.7 Source: LPC

500

200
$174.1

300

150
$109.3 $113.3 $110.1 $79.7 $61.9

105 100 95 90 85 80 75 70 65 60

200

100 $87.1 50

100
$11.7

0 2002 2003 2004 2005 2006 2007 2008 2009 YTD 2010

0

6/2002 10/2002 2/2003 6/2003 10/2003 2/2004 6/2004 10/2004 2/2005 6/2005 10/2005 2/2006 6/2006 10/2006 2/2007 6/2007 10/2007 2/2008 6/2008 10/2008 2/2009 6/2009 10/2009

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Average Deal Size (USD $M)

Total Deal Volume (USD $B)

400

Average Deal Size (USD $M)

Average Deal Size (USD $M)

7

GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

GE Capital Technology Lending Transactions
$450,000,000
ABL & Securitization Agent for revolving credit facility Business Process Services

GE Capital Technology Leasing Transactions
$7,800,000
36-month FMV lease Laptop deployment for U.S. field sales representatives Global Pharmaceutical Company

$428,500,000
Cash Flow Credit Facility Co-Agent for term loan and revolver Transaction Technology Services Provider

$10,000,000
FMV lease IT equipment from multiple vendors for 8 data centers U.S. Telecommunications Company

$316,000,000
A/R Securitization Sole Lead Arranger Leading Provider of Software and IT Services

$62,000,000
Capital Lease IT equipment National Mortgage and Financial Services Company

$250,000,000
A/R Securitization Agent for balance sheet recapitalization Leading Provider of IT Continuity Services

$15,000,000
Capital + FMV leases Store network deployment of point-of-sale equipment North American Retailer

$145,000,000
Combined Senior and Second Lien Facility Agent for corporate restructuring facility Digital Imaging and Document Solutions

$43,000,000
60-month synthetic lease Upgrade of point-of-sale equipment Large Regional Retailer

Industry Technology Conference Calendar
Date
March 23-25, 2010 April 6-8, 2010 April 21-22, 2010 May 3-6, 2010 May 18-21, 2010 July 13-15, 2010 Sept. 14-17, 2010 Oct 5-8, 2010

Event
DistribuTECH IPC APEX EXPO 2010 Nepcon Web 2.0 Expo Multicore Expo Semicon West IMTS 2010 Industry & Technology Conference CTIA-Wireless IT & Entertainment

Location
Tampa, FL (Convention Ctr) Las Vegas, NV (Mandalay Bay) Boston, MA (Convention Ctr) San Francisco, CA (Moscone) Santa Clara, CA (Convention Ctr) San Francisco, CA (Moscone) Chicago, IL (McCormick Place) San Francisco, CA (Moscone)

Industry Investor Conference Calendar
Date
Mar 1-4, 2010 Mar 8-10, 2010 May 17-19, 2010 June 2-3, 2010 June 8-10, 2010 Aug 10-11, 2010 Sep 14-16, 2010

Event
Morgan Stanley Technology, Media & Telecom Conference Jefferies Global Technology Conference JPMorgan Global Technology, Media and Telecom Conf BofA Merrill Lynch U.S. Technology Conference UBS Global Technology & Services Conference Oppenheimer Annual Technology, Media & Telecom Conf Deutsche Bank Securities 2010 Technology Conference

Location
San Fran., CA (The Palace Hotel) New York, NY (Mandarin Oriental) Boston, MA (Westin Waterfront) New York, NY (Westin Times Sq.) New York, NY Boston, MA (Four Seasons Hotel) San Francisco, CA (The Westin)

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9

GE Capital – Industry Research Monitor: Technology & Business Services

1Q10

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GE Capital Industry Team
RESEARCH ANALYSTS Michael Zimm, CFA Technology & Business Services Aerospace & Defense Construction 646-428-7015 Richard Aldrich, CFA Chemicals & Plastics Metals & Mining Auto & Auto Parts 646-428-7365 Henry Fang Media, Communications & Entertainment General Manufacturing Transportation 203-229-1437 Garrick Go Franchise 408-563-6227 Richard James General Manufacturing 203-229-1984 Lauren Milikin Franchise 480-563-6246 Loren Trotta Food, Beverage & Agribusiness Financial Services 203-229-1877

Disclaimer: Although General Electric Capital Corporation (“GE”) believes that the information contained in this newsletter has been obtained from and is based upon sources GE believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. GE makes no representation or warranties of any kind whatsoever in respect of such information. GE accepts no liability of any kind for loss arising from the use of the material presented in this newsletter. This newsletter is not to be relied upon in substitution for the exercise of your independent judgment or legal advice.

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