Coverago Overview FINAL

CONFIDENTIAL

Coverago

May 2011

Table of Contents 1

Company and Leadership Introduction

2

The Problem & Solution: Coverago News

3

The Opportunity 4

5

How to Scale a. Creation: Building a News Factory b. Distribution: Building a News Marketplace c. Roadmap Forward

Financials

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d. e. f. g.

Economic Leverage Customer Leverage Financial Model Uses

Appendix h. i. j. k.

Full Team Biographies Usage Case Studies NewsMercato Screenshots Creation Technology Tools Screenshots

2

Section 1:

Company and Leadership Introduction

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Company Background Coverago was formed to address the need for a single, organized and timely source for news, company information, and themes around the world  Founded July 2008—built and owned by founders and employees  56 employees and 50 contractors in 14 countries  Operations centers in China, Israel and the US that are staffed by analysts 24 hours a day, 7 days a week, who collectively speak 32 languages  Core product offering: Coverago News was developed in September 2009  Over 40 Licensed Clients, ranging from $11,000 to $900,000 per annualized license

08 – 2011: Selected company and product developments Coverago Formed July 2008

Presence Established in Israel March 2009

Coverago Platform Released

October 2009

January 2010

Coverago News Released Presence Established in China March 2010

August 2010

January 2011

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Coverago Global Presence

Global Headquarters: Newark, NJ •Senior Management (3) •Product Management (2) •Business & Client Development (5) •Software Development (4) •Research and Information (15) •Human Capital Development (1)

EMEA Region: Herzliya, Israel •Regional Management (1) •Research & Information (20)

Asia Region: Shanghai, China •Regional Management (1) •Research and Information (4)

Coverago Global / Regional Headquarters Coverago Consultants

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Board of Directors Mark Gerson – Chairman Williams College; Yale Law School: JD Mark Gerson is the Executive Chairman of Gerson Lehrman Group (GLG), which he co-founded in 1998. Mark is the author several books and essays in newspapers and magazines including The New Republic, Reader’s Digest, Commentary, USA Today, The Weekly Standard and the Wall Street Journal. He is the Chairman of United Hatzalah (the network of first responders that treat victims of pre-hospital trauma in Israel) and the Africa Mission Healthcare Foundation (which supports the work of medical missionaries performing clinical care throughout Africa). John W. Cooper – Chief Executive Officer Gettysburg College: BA Computer Science; Columbia Business School: MBA John Cooper is the Chief Executive Officer of Coverago. Mr. Cooper has over a decade of experience in finance and software and was most recently an Investment Banker with Bear Stearns & Co. in their Technology, Media, and Telecom group. Prior to that, Mr. Cooper held engineering and sales management positions with Plumtree Software. Mr. Cooper was with Plumtree from the company’s early stages as a Sequoia-backed start-up through its IPO and subsequent acquisition by BEA Systems. John began his career with Sun Microsystems in their Best-of-the-Best program as a Software Engineer. Erez Kalir – Director Stanford; Oxford; Yale Law School Erez Kalir is a founding partner of Sabretooth Capital, an investment firm seeded by Tiger Management. Before then he worked on the investment team at Tiger Management. Prior to that, he was part of the team that launched Eton Park Capital Management and before then, at 6 McKinsey & Co. Mr. Kalir holds degrees from Stanford, Oxford, and Yale Law School.

Senior Management John W. Cooper - Chief Executive Officer Gettysburg College: BA Computer Science; Columbia Business School: MBA John Cooper is the Chief Executive Officer of Coverago. Mr. Cooper has over a decade of experience in finance and software and was most recently an Investment Banker with Bear Stearns & Co. in their Technology, Media, and Telecom group. Prior to that, Mr. Cooper held engineering and sales management positions with Plumtree Software. Stefan M. Lehmann - Vice President, Operations Cornell University: BA Government; Columbia Business School: MBA Stefan Lehmann joined Coverago in 2008. Mr. Lehmann has spent over seven years in financial services. Most recently, Mr. Lehmann was an Investment Banker at Lehman Brothers, first with their Global Technology group and later in the firm’s Debt Capital Markets division. Prior to that, Mr. Lehmann was at Morgan Stanley in their Global Capital Markets division. David Yang – Vice President, Engineering University of Illinois: BS Electrical Engineering David Yang is VP, Engineering at Coverago. Prior to Coverago, David Yang led the technology infrastructure development team at Gilt Groupe. Mr. Yang also served as Application Architect at RecycleBank, a Kleiner Perkins-backed start-up. Previously, Mr. Yang spent time as an engineer at Yahoo! and practiced as a consultant at Deloitte Consulting.

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gional Managing Directors and Product Management Kevin Baxpehler – Managing Director, Operations - EMEA IDC Herzliya: BA IT Management; New York University – Leonard N. Stern School of Business: MBA Kevin Baxpehler joined Coverago in 2009 as Director of Operations for EMEA. Previously Mr. Baxpehler was an Investment Banker with Credit Suisse in their Leveraged Finance Group. Prior to that he was a Research Manager for the Gerson Lehrman Group and before that he was a Co-founder of a software start-up. Natalie Somekh – Director, Product Management - Distribution University of Cambridge: MA Economics; Harvard Business School: MBA Natalie Somekh joined Coverago as a Director of Product Management, reporting directly to the CEO. Prior to Coverago, Ms. Somekh was an international equities investor at hedge fund, Millgate Capital, in New York. Prior to that she worked in London at private equity fund, Duke Street Capital, and in investment banking at Merrill Lynch. Jonathan Drillings – Director, Product Management - Creation Duke University: BA Biomedical Engineering Prior to Coverago, Jonathan spent 3 years at Investor Growth Capital (IGC), a growth-stage venture capital firm, and subsidiary of Investor AB. Prior to IGC, Jonathan spent time with Lake Street Capital, a secondary-direct venture capital firm, and Sonenshine Partners, a New Yorkbased M&A boutique investment bank.

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Section 2:

The Problem & Solution: Coverago News

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Coverago News: The Problem What problems currently exist in the market for in-depth coverage of companies and topics?  Global Media: Major newspapers, magazines, wire services Problem: News is organized and highly accessible, however, editors select news that is targeted to the largest marketable audience in order to gain widest circulation/impressions. This drives advertising revenue and subscriptions, but results in weak or no coverage on important events that do not appeal to the broad market (1)

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Local Media: Regional newspapers, trade journals, blogs, industry/company websites Problem: Taken in aggregate, important events are generally covered in media, but news is often inaccessible to consumers because of language barriers and high search costs

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Social Media:

Twitter, Facebook, regional equivalents

Problem: Events are breaking first in social media, but news is often inaccessible because of language barriers and high search costs

(1) Pew Project for Excellence in Journalism 2009 Edition, the top 10 US stories online accounted for 48% of the US online news as a whole. The top 10 US media stories overall accounted for 62% of the US media stories overall. http://stateofthemedia.org/2009/online-intro/contentanalysis/.

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overago News: The Problem (Cont’d) Single media sources do not provide sufficient news coverage. By aggregating various media, news aggregators provide sufficient coverage, but have high costs to navigate  News Aggregators: Major online search engines, service based search, clipping services Problem: News is algorithmically clustered and searchable, but translation is flawed and searching costs can still be too high to find the relevant news. Furthermore, publishers many times remove themselves out of aggregators Example: Below is a screen shot highlighting searching costs – “Apple in China” search filtering for “past day” resulted in 3,092 news articles, no articles in Chinese

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Coverago News: The Solution Through proprietary technology and a global workforce of Media Analysts, Coverago solves the problem and provides our clients high value, relevant news that is otherwise inaccessible

Valuable Targeted News

Sources

Technology

Media Analysts

Aggregation, Translation, Summarization

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Coverago News: The Solution (Cont’d) Many sources exist beyond the reach of major search engines that provide key datasets to our customers. Coverago makes this information accessible by combining Technology & Human Effort Entire Web

Visible Web Regulators

Search Engines Technology

Forums

Human

Print

Paywalls Media Analysts

Foreign Press Government Filings Investor Relations Conference Calls E-Mail

30%

of our News Summaries are sourced from non “Visible Web” sources. The murky depths of the deep web” - http://www.mkbergman.com/343/the-murky-depths-of-the-deep-web/

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/ Corporate Communications Case Study: Apple/Foxconn Coverago News breaks stories long before larger, more broadly focused outlets do 11-July-2007 11-July-2007 Employee Employee commits commits suicide suicide at at Foxconn Foxconn 19-July-2009 Summary: 19-July-2009 Summary: •• 19 Chat log from aaaafriend of Sun aa suicide old Hou Mou, Foxconn was to have Chat log from friend ofemployee, Sun Danyong, Danyong, suicide victim 19 year year old Hou Mou, Foxconn employee, was believed believed to victim have committed committed suicide suicide by by hanging hanging herself from the staff quarter bathrooms. herself from the staff quarter bathrooms. 21-July-2009 4:33 AM 21-July-2009 4:33 AM Summary: Summary: •• Hou Hou had had called called her her parents parents on on the the evening evening of of June June 6th, 6th, saying saying that that she she planned planned to to quit quit the the factory factory 25 Year Old Foxconn Employee Commits Suicide on June 19th when she received her wages.  She was found dead on June 18th. •• On 25 Year Old Foxconn Commits Suicide July 16th, Foxconn Technology Group employee, Sun Danyong, on June 19th when she received herEmployee wages.  She was found dead on June jumped 18th. On July 16th, Foxconn Technology Group employee, Sun Danyong, jumped committed committed suicide suicide 09-November-2009 2:18 AM •• According 09-November-2009 2:18 AM found to a the parents of decreased after jumping from the 12th floor of his dormitory. According toSummary: a reporter, reporter, the parents of the the decreased found signs signs of of foul foul play play once once they they saw saw their their after jumping from the 12th floor of his dormitory. Summary: daughter in the home, and whether or her death was aa suicide. •• Sun suspected to have responsible for missing iPhone prototype because he daughter inwas the funeral funeral home, and questioned questioned whether or not not her death was actually actually suicide. Sun was suspected toEmployee have responsible for aaSuicide missing iPhone prototype because he was was Foxconn Commits by Jumping Foxconn Employee Commits Suicide by Jumping •• Foxconn has not specifically revealed the cause of death. • On July Foxconn Technology Group employee, responsible for mailing the Foxconn has• not revealed the cause of death. Onspecifically July 16th, Foxconn Technology Group employee, Sun Sun Danyong, Danyong, jumped jumped committed committed suicide suicide responsible for16th, mailing the machine. machine. 27-July-2010 8:32 PM Summary: •• News163 after jumping from the 12th floor of his dormitory. 27-July-2010 8:32 PM reports that Sun was beaten, searched, interrogated, and illegally detained. Summary: after jumping from the 12th floor of his dormitory. News163 reports that Sun was beaten, searched, interrogated, and illegally detained. Source Chinese Labour [Link] Source •(Chinese): (Chinese): Chinese Labour Bulletin Bulletin [Link] •Foxconn suspected to have responsible for missing iPhone prototype because he was Technology Group section chief involved in the has suspended • Sun • The Sun was was suspected toAgreement have responsible for aa for missing iPhone prototype because hewithout was of Foxconn's The Foxconn Technology Group section chief involved in Family the incident incident has been been suspended without Pension Reached Foxconn Suicide Pension Agreement Reached for Family of Foxconn Suicide Victim • Source Type 23-year-old Foxconn employee Xi recently jumped from the floor • Source Type 23-year-old Foxconn employee Xi Tanguo Tanguo recentlyof jumped from the 5th 5thVictim floor roof roof of Foxconn's responsible for mailing the machine. pay will investigated. responsible for mailing the machine. pay and and will be befactory, investigated. crushing another employee who immediately fainted. Summary: factory, crushing another employee who immediately fainted. Summary: •• News163 reports that Sun beaten, searched, interrogated, and detained. News163 reports that Sun was was beaten, searched, interrogated, and illegally illegally detained. •• Xi had been insulted by supervisor and committed suicide after not being able to Source News163 [Link] Xi had been insulted by his his supervisor committed suicide after not being able to overcome overcome Source (Chinese): News163 [Link] ••Technology Foxconn Technology has reached a preliminary agreement with the family of Danyong, •(Chinese): Group section chief involved in the incident has been suspended without Foxconn Technology has reached aand preliminary agreement with the family of Sun Sun Danyong, who committed committed • The The Foxconn Foxconn Technology Group section chief involved in the incident has been suspended withoutwho the embarrassment and to maintain his innocence on the undisclosed issue. Source Type: the embarrassment and to maintain his innocence on the undisclosed issue. suicide earlier in July, regarding a family pension and maintenance payment by the company. Source Type: suicide earlier in July, regarding a family pension and maintenance payment by the company. pay will be investigated. pay and and will be investigated. •• Some his suicide was caused by released report •• believe Some believe Foxconn his will suicide reportedly waspay caused CNY by excessive excessive to family work pressures. in to Apple has 30,000 released aa year report Foxconn will reportedly pay CNY 360,000 360,000 to the thework familypressures. in addition addition Apple to CNY CNYhas 30,000 yearaamaintenance, maintenance, saying that workers at Foxconn Shenzhen factory are working excessive hours. substituting the money that Sun would have sent to his parents to care for them. Source (Chinese): News163 [Link] saying that workers atmoney Foxconn aretoworking excessive hours. substituting the thatShenzhen Sun wouldfactory have sent his parents to care for them. Source (Chinese): News163 [Link] •• Li •Type: Jinming, Managing Director and of Administration of Foxconn, no taken measures to workers from about issue and has refused Source • Foxconn Lihas Jinming, Managing Director and Chief Chief of Business Business Administration ofthe Foxconn, said that though no amount amount Foxconn has taken measures to prevent prevent workers from speaking speaking about the issuesaid andthat hasthough refused Source Type: could to could substitute substitute the the life life of of the the decreased, decreased, Foxconn Foxconn is is sympathetic. sympathetic. to comment. comment. •• this Li that Foxconn strengthen health to emotional disputes, •• Earlier Li reported reported thatDanyong Foxconn would would strengthen mental mental health support to alleviate alleviate emotional disputes, work work year, also suicide after reportedly misplacing an Earlier this year, Sun Sun Danyong also committed committed suicide aftersupport reportedly misplacing an iPhone iPhone pressures, and other problems and will increase investments to prevent future suicides. pressures, and other problems and will increase investments to prevent future suicides. prototype and suffering confinement, interrogations, and beatings. prototype and suffering confinement, interrogations, and beatings. • Sun had reportedly committed suicide from unfair treatment during an investigation involving a missing •

Sun had reportedly committed suicide from unfair treatment during an investigation involving a missing

iPhone Source Epoch iPhone prototype. prototype. Source (Chinese): (Chinese): Epoch Times Times [Link] [Link] Source Type: Source Source Type: (Chinese): China Review Source (Chinese): China Review News News [Link] [Link]

Source Source Type: Type: China's China's first first digital digital agency agency network network located located in in Hong Hong Kong, Kong, Taiwan, Taiwan, Beijing Beijing and and Guangzhou Guangzhou

Bloomberg ‘breaks’ the Foxconn suicide story on May 25, 2010 - Apple launched an internal investigation in May 26, 2010(1) (1) PC World article “Apple, HP, Dell Team to Investigate Foxconn Suicides” May 26, 2010. http://www.pcworld.com/article/197303/apple_hp_dell_team_to_investigate_foxc.

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Coverago News: The Solution (Cont’d) Coverago monitors breaking news from the most robust set of global sources, from twitter to global media 19-July-2009  

04-March-2010 6:20PM EST

Twitter users comment on Aramark’s aid to earthquake victims Summary:  Engineer Lilian Borcoski wrote a Tweet about Aramark helping earthquake victims  She specified the areas of Santiago where the aid is already being supplied and informed that Aramark’s team will be helping backstage at the telethon tomorrow.

Chat log from a friend of Sun Danyong, a suicide victim Summary:  On July 16th, Foxconn Technology Group employee, Sun Danyong, jumped committed suicide after jumping from the 12th floor of his dormitory.  Sun was suspected to have responsible for a missing iPhone prototype because he was responsible for mailing the machine.

31-August-2010 4:52 AM EDT  

Greenpeace has boarded oil rig belonging to Cairn Energy  

Summary:  

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In an attempt to prevent new drillings off the coast of West Greenland, activists from Greenpeace boarded an oil rig belonging to British company Cairn Energy currently situated in the Baffin Bay. Four activists from Greenpeace climbed up the side of drilling rig Stena Don this morning The operation is taking place in the southern part of the Baffin Bay, 175 km west of the island Disko. The purpose of the action is to prevent the oil company from moving the rig from the current oil wells to a new location about 100 km further north, where Cairn will drill a new well. Cairn announced last week that it had made a small discovery of natural gas in one of the initial two test wells.

 News163 reports that Sun was beaten, searched, interrogated, and illegally detained.



Source (Spanish): Twitter [Link]

 The Foxconn Technology Group section chief involved in the incident has been suspended without pay and will be investigated.



Social networking & microblogging 05-July-2010 11:16 AM EDT website

Source (Chinese): [Link] Chat Forum News163 on Chinese internet portal 17-August-2010 01:16 AM EDT

Danish Newspaper 27-July-2010Daily 02:42 AM EDT

Gazprom Has Not Recovered From Crisis

 

   

Summary:  

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According to the Fuel and Energy Authorities, gas production in Russia in first half 2010 rose by 21.8% compared to the similar period of last year to 334 billion cubic meters. Compared to May, the figure has decreased by 12.5% to 44.72 billion m3. Gazprom's production in the first half a year was 262.175 billion m3. In June the company produced 33,472 billion m3, which is a 15.7% fall compared to last month. 6.2 billion out of total 6.5 billion in the industry decrease accounted to Gazprom. Total gas production rose by 19.8% compared to June 2009 but still has not reached the pre-crisis amounts. Gas exports grew 1.5 times in th first six months to 91.662 billion m3. Exports to the former Soviet territories grew three-fold; exports to the rest of the world increased by 15.6%. Gazprom expects to recover two thirds of last year's fall during 2010. The local market will fully recover by 2012-2013, Gazprom's representatives say. Gazprom's production plan for 2010 is 519 billion m3. As for oil production, Russia is still remaining the leader with the daily production of 10.13 million barrels, which is 0.5% higher than in May.

Commerce oriented Russian Source (Russian): Kommersant [ Link ] Newspaper

Synutra's Hormone Scandal Causes Crisis of Confidence in China's Dairy Industry  

Summary:  

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On August 15, China's Health Ministry made an announcement that they found no evidence that milk powder made by Synutra International caused abnormal hormone levels in children.

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In the week following the hormone scare, Synutra’s market value shrank by over 2 billion yuan. General stock prices in the dairy sector have dropped consequently, with Mengniu’s stock price plummeting by 4.3% in 3 days.

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Some analysts believe this hormone scare will heavily impact China’s dairy market. Negative effects to the industry could last for at least a year.

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Euroserum, the world’s largest producer of whey powder (one of the major raw materials of milk powder) from Europe, is a strategic partner of Synutra.

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However, in March 2008, 1,075 tons of whey powder imported by Chinese companies from Euroserum was disqualified by customs, mainly because of its “overranging of protein content.”

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A former agent of Euroserum’s products disclosed that Yili and Mengniu are also clients of the company.

Source (Chinese): E23 [ Link ] News portal based out of Jinan, China

Source (Danish): Berlingske Tidende [ Link ]  

Chrysler Wins 70% of Cases as Dealer Arbitration Ends  

Summary:  

 Chrysler said arbitrators ruled in its favor in 70% of cases brought by dealers who sought reinstatement after the company cut them from its network.  The arbitration process has concluded, and Chrysler prevailed in 76 of 108 of the decisions.  Under a law enacted in December, Chrysler was required to offer binding arbitration to dealers that were terminated in its bankruptcy reorganization.  Of the 789 dealers terminated, 418 applied for arbitration, Mike Palese, a Chrysler spokesman, said on July 26. The cases that didn’t go to final arbitration were either settled, dismissed, withdrawn or abandoned, he said.  Chrysler had 2,315 dealers as of June 30, and 29 previously rejected locations have accepted company offers to become dealers, Palese said.  “We’re definitely within the network size that we’re looking for,” he said. Chrysler expects a total U.S. dealer network of 2,300 by the end of next year because of attrition and further consolidation, he said.

Global news network Source (English): Bloomberg [ Link ]

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Coverago News compared to

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Coverago News: The Solution Coverago News enables the consumer to be the editor, directing our focus. Coverago News delivers content that is material or relevant 1. Clients tell us specific companies / themes they are interested in

Utilizing Proprietary Technology and Human Efforts to Monitor for News . . .

2. We staff Global Media Analysts (GMAs) who: a. Find all relevant sources b. Monitor sources c. Filter for materiality and duplicates d. Summarize in English 3. News summaries delivered with custom delivery settings, accessed via web platform or email

. . . and Efficiently Generate English-Language Summaries of that News Areva: Areva: Robot Robot Offers Offers Refused Refused by by Tokyo Tokyo Electric Electric Power Power

4. Both historical and breaking news available 5. Archived and indexed historical information is fully searchable

28 28March March2011 201111:26 11:26PM PMEDT EDT Source Source(Japanese): (Japanese): Yomiuri YomiuriOnline Online

•• On On March March 28, 28, French French Energy Energy Minister Minister Eric Eric Besson Besson announced announced that that Areva, Areva, aa French French nuclear nuclear reactor reactor maker, maker, will will send send two two radioactive radioactive water water treatment treatment experts experts to to Japan. Japan. •• Areva Areva said said itit is is prepared prepared to to send send additional additional experts experts ifif necessary. necessary. •• Areva also offered robots to Tokyo Electric Power, Areva also offered robots to Tokyo Electric Power, and and was was refused refused by by the the latter. latter. TEPCO TEPCO judged judged that that the the usage usage of of robots robots will will not not have have decisive decisive effect, effect, according according to to Areva. Areva. •• Areva said Areva said that that the the robots robots itit offered offered were were developed developed by by EDF EDF (Électricité (Électricité de de France France SA) SA) and and Areva. Areva.

Coverago utilizes proprietary technology to aid intelligent human research & creation and turn our client’s global research objectives into concise, curated, English-language summaries 17

Coverage To Date Coverago News has covered 1,006 companies and 311 themes to date from our clients in the investing, legal, PR and corporate worlds. NewsMercato will enable us to expand to a retail customer base and to leverage our news coverage using network effects 1,006 Companies covered including:  Akbank: English & Turkish  Apple: Chinese & English  Banco Santander (Brazil): English & Portuguese  BYD: Chinese & English  China Minsheng Banking Corp: Chinese & English  Fiat: Italian  Power One: English  Royal Dutch Shell: Arabic, Chinese, English, Portuguese, Russian, Spanish  SAP: Chinese, English & German

311 Themes covered including:  Gambling Industry (Brazil): Portuguese  Insurance Industry (China): Chinese  LED Displays (Korea): Korean  Iron Ore (Australia): English  Rare Earth Mining: Japanese  Financial Services Sector Regulations (China): English & Chinese  Salmon Production (Chile): English & Spanish  Tablet Components – Semiconductors: Korean  GE Nuclear Reactor Design: Japanese

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Section 3:

The Opportunity

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We have discovered three important insights… 1. Combining proprietary technology with a global human effort, we can produce news in a highly profitable way Coverago’s Media Analyst workforce has doubled productivity with each new release of our publishing platform. On a per unit basis, the operation was profitable with the first release of the platform.

2. High percentage (and growing) of similarity in clients’ requests The long tail of the news market was more resalable than we expected. Different clients from different market segments (legal, finance, corporate, PR, etc) have continued to request much of the same news. Our coverage requests are approaching 30% duplication and the percentage of duplicate requests is growing in relation to the size of our coverage universe.

3. We can lower the price as we resell the same news. This amortizes our costs, increases our defensibility, and expands the addressable market Volume pricing, packaging and marketing automation allow us to target multiple profitable customer segments. News coverage is easy to package and a great source of marketing automation (newsletters, SEO/SEM) that allow 20 us to find customers along the entire spectrum of pricing

The Opportunity: Market Size

$ in 000s

Sources: Dealogic, AmLaw, Fortune, UN, Veronis Suhler Stevenson Communication Industry Forecast, CapitalIQ, Pew Research (1) Based on transaction volume per Dealogic – 2010. (2) Based on information from subject expert – includes large law firms(AmLaw 200) and small law firms consisting of an assumed 1,000 additional firms capable of scale to properly utilize News. (3) Global Fortune 2,000, all of which would have the scale need for international document search and translation. (4) Based on UN’s UNCTAD estimate. (5) Total registered non-profit organizations as of 2009 per the National Center for Charitable Statistics at the Urban Institute. (6) Based on the research paper “How Big Is Public Relations (and Why Does It Matter)?” by Toni Muzi Falconi, 2006. $5.2 billion annual spend on PR, 2009 Veronis Suhler Stevenson (VSS) Communications Industry Forecast (7) Global government agencies that are responsible for collecting, producing, and promoting open source intelligence. (8) Based on CapitalIq client base (prior to merger with themarkets.com). (9) Center for Association Leadership (10)Pew Internet & American Life Project 2010 & US Census data (11)Based on compiled statistics from Wikipedia for the top four strategy consulting firms (http://en.wikipedia.org/wiki/McKinsey_ %26_Company)

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Section 4:

How to Scale

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Section 4a:

Creation: Building a News Factory Increasing operating leverage, developing building blocks of resalable news, building a news factory

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The Creation Process Four components to Creation: Initiation, Monitoring, Authoring, Editing. Technology and human effort are combined in each component to create an efficient, scalable process Initiation  Analyst research is stored in Coverago’s structured wiki in Company and Topic Pages  Content helps other analysts quickly get up to speed, synchronizes knowledge across various geographies and prevents knowledge loss  Analyst also codifies RSS feeds, News and Search Alerts and In Design keywords for internal web crawlers

Monitoring  Company and Topic pages drive the automated crawlers of QSpace  Coverago proprietary technology monitors news across disparate sources and creates central location where GMAs stay up-to-the-second  Collaboration tools reduce redundancy and load balances workload intelligently across analysts

Prototype

Authoring  Analyst selects a material news article for summarization  Automation tools to capture full-text, translate, extract entities and generate auto-summarization  Authoring tool for writing summaries and submission for editing

Production

Editing  Editor works off his own queue of submitted articles and checks for quality, relevance and accuracy  Editing tool shows summary and fulltext extraction  Supports workflow for summary re-work, editing and sending

Production

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The Creation Process News classification using computer and human entity extraction allow us to generate mass-customized derivative product bundles of our crafted summaries Automated Newsletter:

4-May-2011 4-May-2011 8:32 8:32 PM PM Nissan Leaf Hits The Nissan Leaf Hits The Track Track Summary: Summary: …. …. Companies: Companies: Nissan Nissan Products: Products: Leaf ZeroTechnologies Technologies Emission

NiMH Batteries

5-May-2011 5-May-2011 2:15 2:15 PM PM Nissan plans “second-life” Nissan plans “second-life” for for Leaf Leaf NiMH NiMH Summary: Summary: …. ….

High Efficiency Vehicles

News and Topic Bundling Company

• Nissan

Company

• Better Place

Company

• Tesla

Better

Nissan

Companies: Companies: Nissan Leaf Place Products Products NiMH Batteries Technologies: Technologies:

Product

• Nissan Leaf

Theme

• NiMH Batteries

Theme

• Zero-emission

SEO Landing Page

6-May-2011 6-May-2011 5:33 5:33 PM PM Green Green Car Car Loans Loans awarded awarded to to Ford, Ford, Tesla Tesla Summary Summary :… :… Ford

Tesla

Companies: Tesla Companies: Roadster Products: Products: ZeroTechnologies: Technologies: Emission

Ford Ranger EV NiMH Batteries

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Section 4b:

Distribution: Building a News Marketplace Increasing market penetration, entering new markets, increasing margin contribution, building a news marketplace

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Scaling Coverago News: News Coverage at Scale

Low Automation, High Cost of Sales

Sales Automation

High Automation, Low Cost of Sales

Increasing sales automation technology will allow Coverago to address lower RPU customers. Coverago’s News Marketplace captures the distribution opportunity of increasingly automated customer touchpoints and increased RPU through resalability and targeting. Retail Investor and Consumers

News Marketplace (News Mercato)

Channel and Marketing automation have exposed us to this customer segment but they have been costly to service

An iTunes-like marketplace of news that optimizes for resalability and automation

High-End Customers Direct Sales is able to reach a significant market for news coverage already

Low Revenue

Revenue Per User

High Revenue 27

Current Product Outputs Web only

Real time email

Newsletter

Rollups

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Scaling Coverago News: The News Marketplace

Sales Strategy

Custom ers

Key Features

The News Marketplace (NewsMercato) is a new delivery system for Coverago News, currently under development. It offers the same quality and solution set at a lower price, with increased automation via an iTunes-like marketplace

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Create Your Own Newsletter encourages users to create custom content for distributing to their own channels Set Your Own Price captures users at all points of the demand curve Intelligent Recommendations help our users generate ideas and find related concepts

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Coverago News currently serves institutional clients mostly in the financial services industry NewsMercato expands our reach to retail customers and industry verticals

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Viral: Incentivize existing customers to invite friends, make recommendations and create interesting newsletters available for resale using (1) credits and (2) lower prices on existing requests Suggestive: Make intelligent request recommendations based on what’s popular and usage patterns Automatable: Customer and news information creates diverse SEM and SEO opportunities (Company/Topic Landing Pages, Industry Vertical Newsletters/Reports, etc.) Affiliate Marketing; Incentivizing affiliates to refer and send users to NewsMercato Self provisioning, lower subscriber acquisition costs, increased resale Network effects: as more users choose the same companies or topics, they are incentivized to recommend these to others which drives demand and results in lower prices, which then interests additional customers etc. Margin expansion as resale of Coverago News summaries increases

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Benefit s

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NewsMercato: The iTunes for News Easy-to-use, searchable, automated interface that diminishes the need for direct sales and encourages marketplace participation

Intelligent Recommendations Our customers are constantly looking for idea generation – collaborative filtering allows us to make “Genius” type recommendations

Create Your Own Newsletters Users create newsletters for their own network, signups through that newsletter place credits in their account

Set Your Own Price Users express their interest through “price triggers” that allow us to balance coverage cost with long tail market size

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aling Coverago News: NewsMercato Network Effect As more users subscribe to the same topics, prices fall while margin increases 

Dynamic and transparent pricing allows us to capture users at multiple points of the demand curve

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Credits for direct and/or Newsletter user referrals create viral growth channels Investor benefits from Investor refers no one

Investor covering Chinese large-cap Investor Googles “BYD”

Consultant responsible for auto industry

Coverago SEM and affiliate sales program bring investor and consultant to BYD company page on NewsMercato

Consultant received referral from friend recommending NewsMercato coverage of BYD

$12 /da y

Both clients brought to BYD landing page would pay $12/day each

price decline despite not referring anyone … $9 /day

After 6 days, consultant colleagues begin following BYD and market price drops $9 / day

$12 /da y

Consultant refers colleagues (receives what referral spends in first month in credit)

$9 / day $9 /day (Credi t)

$3 / day

After an additional 6 days, more colleagues follow BYD and market price drops to $3/day … $3 / day $3 / day $3 /day (Credit)

31

Section 4c:

Roadmap Forward

32

Coverago Product Roadmap Track

Cr ea tio n

2011Q2

2011Q3

Company and Topic Pages 1.0 Population of data from current sources

-

Initiation

-

Coverago Training Program

Monitoring

-

QSpace unified queues QSpace shared queues

-

Forum crawlers E-mail extraction

-

-

Entity extraction Auto-summarization

-

Summarization: Feedback scoring

-

Full-text extraction and translation Performance analytics

-

Performance Analytics

-

Real-time View of Authoring

-

Reading Level Analysis checks on Summaries

-

SEO pages driven from Company and Topic Pages incorporating News NewsMercato (NM)

-

Custom Industry specific Newsletters and Landing domains Keyword generator tool

-

Entity Pages (Autogen) SalesForce integration Social Media Push

Authoring Editing

Customer Acquisition

-

-

Di str ib uti on

2011Q4

-

-

NM: Company and topic selfservice purchasing and price trigger setting

-

NM: Account History for Referral Activation

-

NM: Refer LinkedIn, Twitter contacts (auto-import) NM: Pricing and credit bonus based on referrals who activate

-

Individual affiliate links for Newsletters

-

Company and Industry Reports

-

News Pusher

Activation

Referral

-

NM: Activity Feed NM: Follow users

-

Retention

NM: Intelligent Recommendations

-

E-mail analytics

-

Website hooks for A/B Multivariate testing

Analytics

-

33

Section 5:

Financials

34

Section 5a:

Economic Leverage

35

conomic Leverage: Unit Economics & Margin Progression

36

Section 5b:

Customer Leverage

37

ustomer Leverage: Breakdown & Trends to Date Client accounts typically grow in both number of users and in number of requests per user 6

12

5

11

4

10

3 Users / Contract

2

1

9 Requests / User

8

7

0 6 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Average Users / Contract Average Requests / User

 Clients typically launch trials with a small, focused group of users and a limited number of subscriptions  On expiration of the trial period, the user base may shift, but does not grow meaningfully  However, over the first several months of the contract, the user base typically grows  Requests per user also typically grow over contract life as (i) clients understand and trust the Coverago News offering and (ii) 38 clients understand how to integrate

stomer Leverage: Overview of Client Pricing Trends

39

Section 5c:

Financial Model

40

Financial Model

41

Financial Model

42

Section 5d:

Uses

43

Partnership We are seeking $10 MM to build a global sales force, begin broad web marketing efforts and continue building the Global Media Analysts workforce 

Use of proceeds:

 $4.0M on Direct Sales  $4.0M on Marketing  $2.0M to invest in Media Analysts and editorial capabilities across various operation centers  Projecting significant profitability in 2013

44

Section 6:

Appendix

45

Section 6a:

Full Team Biographies

46

Board of Directors Mark Gerson – Chairman Williams College; Yale Law School: JD Mark Gerson is the Executive Chairman of Gerson Lehrman Group (GLG), which he co-founded in 1998. Mark is the author several books and essays in newspapers and magazines including The New Republic, Reader’s Digest, Commentary, USA Today, The Weekly Standard and the Wall Street Journal. He is the Chairman of United Hatzalah (the network of first responders that treat victims of pre-hospital trauma in Israel) and the Africa Mission Healthcare Foundation (which supports the work of medical missionaries performing clinical care throughout Africa). John W. Cooper - Chief Executive Officer Gettysburg College: BA Computer Science; Columbia Business School: MBA John Cooper is the Chief Executive Officer of Coverago. Mr. Cooper has over a decade of experience in finance and software and was most recently an Investment Banker with Bear Stearns & Co. in their Technology, Media, and Telecom group. Prior to that, Mr. Cooper held engineering and sales management positions with Plumtree Software. Mr. Cooper was with Plumtree from the company’s early stages as a Sequoia-backed start-up through its IPO and subsequent acquisition by BEA Systems. John began his career with Sun Microsystems in their Best-of-the-Best program as a Software Engineer. Erez Kalir – Director Stanford; Oxford; Yale Law School Erez Kalir is a founding partner of Sabretooth Capital, an investment firm seeded by Tiger Management. Before then he worked on the investment team at Tiger Management. Prior to that, he was part of the team that launched Eton Park Capital Management and before then, at McKinsey & Co. Mr. Kalir holds degrees from Stanford, Oxford, and Yale Law School. 47

Senior Management John W. Cooper - Chief Executive Officer Gettysburg College: BA Computer Science; Columbia Business School: MBA John Cooper is the Chief Executive Officer of Coverago. Mr. Cooper has over a decade of experience in finance and software and was most recently an Investment Banker with Bear Stearns & Co. in their Technology, Media, and Telecom group. Prior to that, Mr. Cooper held engineering and sales management positions with Plumtree Software. Stefan M. Lehmann - Vice President, Operations Cornell University: BA Government; Columbia Business School: MBA Stefan Lehmann joined Coverago in 2008. Mr. Lehmann has spent over seven years in financial services. Most recently, Mr. Lehmann was an Investment Banker at Lehman Brothers, first with their Global Technology group and later in the firm’s Debt Capital Markets division. Prior to that, Mr. Lehmann was at Morgan Stanley in their Global Capital Markets division. David Yang – Vice President, Engineering University of Illinois: BS Electrical Engineering David Yang is VP, Engineering at Coverago. Prior to Coverago, David Yang led the technology infrastructure development team at Gilt Groupe. Mr. Yang also served as Application Architect at RecycleBank, a Kleiner Perkins-backed start-up. Previously, Mr. Yang spent time as an engineer at Yahoo! and practiced as a consultant at Deloitte Consulting.

48

Counsel Jason Gabbard –Counsel University of Louisville; University of Virginia Law School: JD Jason is a partner at Gabbard & Kamal LLP, where he advises businesses, financial institutions and individuals across multiple industries including finance, real estate, fashion, film, music, and theater. Jason began his legal career with Cravath Swaine & Moore in New York. At Cravath, Jason was involved in a number of notable transactions, including IPOs, mergers, stock and asset acquisitions and sales, joint ventures, and debt issuances. After Cravath, Jason worked at Morgan Stanley’s MSREF private equity fund in London. At Morgan Stanley, Jason managed a group of London-based lawyers and bankers responsible for closing billions of dollars in private equity transactions throughout Europe and Asia. Douglas Lichtman - Counsel Duke University: BS; Yale Law School: JD Douglas Lichtman joined the faculty of UCLA School of Law in 2007 after a tenured teaching career at the University of Chicago. His work has been featured in numerous journals including the Journal of Law & Economics, the Journal of Legal Studies, the Yale Law Journal, and the Harvard Business Review. He co-authored Telecommunications Law and Policy, a textbook that investigates the federal regulatory regime applicable to broadcast television, cable television, radio, telephony, and the Internet. He also regularly writes in the popular press, with recent pieces appearing in the Los Angeles Times and the policy magazine Regulation.

49

Finance Scott Kenerly – Director, Finance (Consultant) University of North Carolina - Chapel Hill: BA Economics, MA Accounting; New York University: MBA Mr. Kenerly has over a decade of experience in finance and accounting, including work with early-stage media companies. Prior to Coverago Scott was an Investment Banker at Bear Stearns & Co. in their Leverage Finance group. Prior to that he was a Senior Manager in Forensic Accounting and Valuation, first for Arthur Andersen LLP then with Navigant Consulting Inc.

50

Product Management Natalie Somekh – Director, Product Management (Coverago News - Distribution) University of Cambridge: MA Economics; Harvard Business School: MBA Natalie Somekh joined Coverago as a Director of Product Management, reporting directly to the CEO. Prior to Coverago, Ms. Somekh was an international equities investor at hedge fund, Millgate Capital, in New York. Prior to that she worked in London at private equity fund, Duke Street Capital, and in investment banking at Merrill Lynch. Jonathan Drillings – Director, Product Management (Coverago News – Creation) Duke University: BA Biomedical Engineering Prior to Coverago, Jonathan spent 3 years at Investor Growth Capital (IGC), a growth-stage venture capital firm, and subsidiary of Investor AB. Prior to IGC, Jonathan spent time with Lake Street Capital, a secondary-direct venture capital firm, and Sonenshine Partners, a New York-based M&A boutique investment bank.

51

Operations & Human Resources Kevin Baxpehler – Director, Operations EMEA IDC Herzliya: BA IT Management; New York University – Leonard N. Stern School of Business: MBA Kevin Baxpehler joined Coverago in 2009 as Director of Operations for EMEA. Previously Mr. Baxpehler was an Investment Banker with Credit Suisse in their Leveraged Finance Group. Prior to that he was a Research Manager for the Gerson Lehrman Group and before that he was a Co-founder of a software start-up. Abby Beal - Associate, Operations Brigham Young University, BA; Columbia University, JD Abby Beal is an Associate in Research and Operations at Coverago. Prior to Coverago, Abby Beal spent six years practicing law at the law firms of McDermott Will & Emery LLP and Stroock & Stroock & Lavan LLP. Ms. Beal focused her practice primarily on corporate reorganizations, creditors’ and debtors’ rights and bankruptcy proceedings. Katie Lai – Director, Global Human Capital Development University of California, Davis: BA Chinese Language Katie Lai is Director, Global Human Capital Development at Coverago. Prior to Coverago, Ms. Lai lead finance and product marketing recruiting for Palm. Previously, Ms. Lai was a search consultant for Korn/Ferry International’s Legal Center of Expertise and the firm’s Industrial Practice.

52

Engineering Chris King - Software Engineer University of Massachusetts Lowell: BS Computer Science, Mathematics (magna cum laude) Chris King joined Coverago in 2008 to become Coverago's first Software Engineer. Prior to Coverago, Mr. King interned with EMC Corporation's Advanced Development group as a developer and technology analyst. Previously, Mr. King also interned with the University of Massachusetts Lowell's PeopleSoft migration project, initially as a technical writer, later as a system tester, and ultimately as an internal tool developer. Ankit Malhotra - Software Engineer RNSIT Bangalore: BE Computer Science; Columbia University: MS Computer Science Ankit Malhotra joined Coverago as a Software Engineer in early 2009 and in this time has worked on a variety of projects impacting both internal and external Coverago applications. Previously, Mr. Malhotra interned as a Software Engineer at NextJump, NY. Marcus Brito — Software Engineer Faculdade Ruy Barbosa (Brazil): BS Computer Science Marcus Brito is a senior software engineer at consultancy firm e-Core International. Currently fully dedicated to Coverago, Mr. Brito has previously rendered services to Bunge North America, Health Plan Services and others. Prior to e-Core, he has worked as a software engineer for mobile carrier Vivo, and other software development companies before that.

53

Engineering Keehwan Park – Software Engineer, Engineering Carnegie Mellon University: BS Physics and Computer Science Keehwan Park joined Coverago as a Software Engineer in early 2009. Mr. Park has participated in the front-end and back-end development of Coverago News, Documents, and Transactions.

54

Business Development Directors Cameron Kirby Harvard University: AB Psychology Prior to joining Coverago, Cameron was a Vice President at Sorin Capital Management, a hedge fund focused on commercial real estate-related securities. In addition to his role on the Investment Committee, Cameron was responsible for Sorin’s interest rate and foreign exchange strategies. Prior to Sorin, Cameron was an acquisitions analyst at Tishman Speyer and a legal assistant at Shearman & Sterling. Joshua Lurie George Washington University Most recently Joshua co-founded Soundboard Review Services, a corporate governance board advisory service. Prior to co-founding Soundboard, Joshua was Vice President of Business Development at Salary.com, a leading provider of on-demand compensation data, payroll, and talent management solutions. Prior to working at Salary.com Joshua was a Vice President of Compensation Consulting at Aon Consulting, where he co-managed the eComp Data Services business, which he founded and sold to Aon Consulting in 2001. Prior to founding eComp Data Services Joshua co-managed a market data group in the Investment Banking Division at Smith Barney.

55

Business Development Directors Jared Shapiro University of Wisconsin-Madison: BA Political Science; Benjamin N. Cardozo School of Law Jared came to Coverago following a career in Insurance and Law. Jared was an owner of Property Title Group, LLC, a title insurance company focused on commercial real estate matters throughout the United States. Michael Wolverton University of Pittsburgh: BS Finance Prior to Coverago, Michael was the founder and CEO of Axial Market, a leading marketplace for privately-held companies.  Before creating Axial Market, Michael worked as the Director of Business Development for the private equity firm LLR Partners.  Michael began his career at Penn Capital Management.

56

Selected Global Media Analysts Olga Bermant – GMA, German & Russian market Oxford University: BA Modern Languages & Literature Olga Bermant joined Coverago in 2010 as a GMA covering the German market. Previously, Ms. Bermant was a Fellow with Israel’s Antitrust Authority. Prior to that she worked as a project leader and researcher at ILI – I Like Israel, the Washington Institute for Near East Policy, Israel’s Embassy in London and the Pushkin Institute of Russian Literature in St. Petersburg. Olga speaks German, English and Russian and has basic knowledge in French, Italian and Hebrew. Shelley Granek – Editor University of Melbourne: BCom Finance & Economics Shelley Granek joined Coverago in 2010 as an Editor. Prior to joining Coverago Ms. Granek worked for ANZ Banking Group’s Institutional Division in Melbourne and before that supported the management team of Forex Capital Trading. She is bilingual in English and Hebrew. Ying Zhu Chin – GMA, Chinese market Northwestern University: BSc Computer Science and Poetry in Creative Writing ; New York University: MA in Humanities and Social Thought Ying Zhu Chin joined Coverago in 2010 as a GMA covering the Chinese market. Prior Ms. Chin's worked as a software engineer at Northwestern and as managing editor for a poetry magazine. She speaks English, Chinese and Malay. Babatunde Anjorin – GMA, English & African markets Columbia University: BSc Civil Engineering, minor in Economics; SUNY GENESEO: BA Physics & Mathematics Babatunde Anjorin joined Coverago in 2010 as a GMA covering English and African markets. Mr. Anjorin previously worked as an analyst for Accenture in Nigeria. Prior to that, he co-founded and developed a petroleum marketing start-up in Nigeria. He is bilingual in English and Yoruba. 57

Section 6b:

Usage Case Studies

58

Coverago News: Usages Different types of customers can use Coverago News in different ways Investment Management Hedge funds, private equity, sovereign wealth, retail investors

-

Research analysts Portfolio managers Investor relations (1) Library (1)

Banks - Investment banking - Sales & Trading - Research (1) - Library (1) Law Firms - Legal professionals - Library (1) Corporations - Corporate communications - Branding - Corporate development Public Relations Firms Government (1) Support divisions.

 Receive new relevant news regarding companies and themes (re: existing or prospective investments) - Valuation impacting news, event monitoring, thesis exploration, identification of potential investment, understanding competitive landscapes, market and macroeconomic research  Historical roll ups help with due diligence on investments, markets or prospective management teams  Watch list compliance—investors who are restricted because they have been informed of MNPI are able to see the moment when the news become public, correspondingly releasing their restriction  Investor relations is aided in managing reputational risks by learning or press mentions efficiently and in a timely manner  Bankers stay informed of their clients’ news and activities, as well as news that can impact their clients (e.g. competition, regulation, macroeconomics). Helps with: - Client servicing; deal idea generation; generating ideas for new potential target clients  Immediate monetization opportunities for traders as relevant news is broken faster than other sources  Research stays informed of news relevant to their coverage and rollups help with thematic studies  Lawyers are informed of their client’s issues and areas of interest (often before their clients are aware), and can stay informed of regulatory changes  Know client checks  Marketing support—we enable professional service firms to know their clients and their issues through access to previously inaccessible local news  Corporate communications officers can stay informed of strategic and reputational risks regarding their firm in a timely manner, and have time to deal with issues and events that arise 59  Product managers can obtain insight into local markets and competitors’ products  Corporate strategy and development professionals stay informed of competitor and

Human Intelligence Wins Defection of the Governor of the People’s Bank of China Zhou Xiaochuan, governor of the People's Bank of China, was rumored to have defected to the U.S. The Chinese government cracked down on media reports containing mentions of Zhou's name. On the Internet, Chinese netizens were able to carry on discussions of the topic by substituting a character in Zhou's name with another Chinese character that sounded similar, but that had entirely different meanings. 周小川 became 周小串 , and netizens effectively bypassed state censorship. A computer program would have a hard time quickly figuring out witty or arbitrary permutations of terms invented by China's censored population as needed.

TVN SA: Impact of Regulatory Change The Polish government announced a series of sweeping regulatory changes regarding TV commercials. Although TVN was not mentioned in any of the news articles regarding the regulatory change, our GMA immediately understood the negative impact the new regulations would have for TVN SA and created a summary of the article.

12-Jan-2011 12-Jan-2011 3:58 3:58 AM AM New New Regulation Regulation By By Poland's Poland's National Broadcasting National Broadcasting Council Council May May Decrease Advertising Revenues Decrease Advertising Revenues ••

••

Poland's Poland's National National Broadcasting Broadcasting Council's Council's regulation, regulation, which which will will come come into into force force on on April April 28 28 2011, 2011, may may cut cut broadcasters' broadcasters' profits profits from from sponsorship sponsorship advertising advertising by by 10% 10% to to 15%, 15%, analysts analysts said. said. The The new new restriction restriction lowers lowers the the possible possible number number of of sponsorship sponsorship advertisements advertisements displayed displayed during during an an event event and and bans bans sponsors sponsors from from implementing implementing any any items items that that were were previously previously used used for for promotional promotional activity. activity.

Source Source (Polish): (Polish): Gazeta Gazeta Prawna Prawna [Link] [Link]

Intel: FTC Investigation Price movement in Intel stock without related news being released GMA pieced together a previous story and found a release on the FTC that had not been picked up anywhere else

2-Nov-2010 2-Nov-2010 7:28 7:28 PM PM FTC Approves Modified FTC Approves Modified Intel Intel Settlement Settlement Order Order ••

••

Following Following aa public public comment comment period, period, the the Federal Federal Trade Trade Commission Commission has has approved approved aa modified modified settlement settlement order order resolving resolving charges charges tat tat Intel Intel Corp. Corp. illegally illegally stifled stifled competition competition in in the the market market for for computer computer chips chips The The FTC FTC modified modified the the order order to to allow allow Intel Intel to to ship ship this this product product until until June June 2013, 2013, though though all all future future generations generations of of this this chip chip must must fully fully comply comply with with all all specifications specifications of of the the final final order. order.

Source Source (English): (English): FTC.gov FTC.gov [Link] [Link]

60

ndamental Investor Case Study: Concord Medical

CCM Stock Price Performance

Related Coverago News Summaries

20-December-2010 20-December-2010

Health Health Industry Industry Praises Praises New New State State Policy Policy

20-December-2010 Coverago News: Health Industry Praises New State Policy

(13.8%) 29-December-2010 Seeking Alpha: 15 BRIC Stocks Being Snapped Up by the Smart Money

25-January-2011 Coverago News: Ministry of Health Announces Approval of Foreign Joint Ventures for Medical Institutions

Summary: Summary: •• According According to to reports, reports, aa State State Council Council paper paper aimed aimed at at removing removing barriers barriers for for private private investment investment in in the the mainland mainland could could change change the the status status of of public public hospitals hospitals and and increase increase the the presence presence of of private private hospitals, hospitals, creating creating aa more more dynamic dynamic health health care care market market in in China China overall. overall. •• Wholly Wholly foreign-owned foreign-owned hospitals hospitals and and clinics clinics will will soon soon be be allowed allowed in in pilot pilot cities cities under under aa more more lenient lenient approval approval processes. processes. •• According According to to GuXin, GuXin, professor professor at at Peking Peking University's University's Government Government Administration Administration School, School, the the paper paper represents represents aa "dramatic "dramatic breakthrough breakthrough in in the the area area of of market-entry market-entry de-regulation," de-regulation," and and will will lead lead to to an an increase increase in in the the number number of of private private medical medical service service providers providers in in the the market. market. •• This This could could potentially potentially mean mean more more competition competition for for Concord Concord Medical Medical Services, Services, which which competes competes with with both both public public and and private private hospitals hospitals that that offer offer radiotherapy radiotherapy and and diagnostic diagnostic imaging imaging services. services. •• In In addition addition to to various various promises promises addressing addressing the the needs needs of of private private hospitals, hospitals, the the paper paper also also said said that that non-profit non-profit hospitals hospitals would would receive receive the the same same types types of of tax tax wavers wavers as as public, public, government-run government-run hospitals. hospitals. •• FengZhengchun FengZhengchun ,, aa professor professor at at Huazhong Huazhong University University of of Science Science and and Technology's Technology's College College of of Medicine Medicine and and Health Health Management, Management, believes believes that that rather rather than than competing competing with with public public hospitals, hospitals, which which still still have have the the best best doctors doctors and and equipment, equipment, private private hospitals hospitals must must specialize specialize in in providing providing certain certain types types of of medical medical care. care. Source Source (English): (English): South South China China Morning Morning Post Post [Link] [Link] 20-December-2010 20-December-2010

Ministry Ministry of of Health Health Announced Announced Approval Approval of of Foreign Foreign Joint Joint Ventures Ventures for for Medical Medical Institutions Institutions Summary: Summary: •• On On January January 25, 25, 2010, 2010, China's China's Ministry Ministry of of Health Health announced announced that that it it approved approved policies policies allowing allowing wholly-owned wholly-owned joint joint ventures ventures to to be be formed formed between between domestic domestic healthcare healthcare institutions institutions and and foreign foreign healthcare healthcare institutions institutions in in an an effort effort to to encourage encourage development development and and growth growth within within China's China's healthcare healthcare system. system. •• The The joint joint ventures ventures or or partnerships partnerships must must be be approved approved by by the the Ministry Ministry of of Health Health and and can can be be either either for-profit for-profit or or non-profit. non-profit. Source Source (Chinese): (Chinese): Ministry Ministry of of Health Health [Link] [Link]

61

acro Investor Case Study: Malta Air Traffic Control NATO Takes Over Libya No-Fly Zone



While the UN was debating whether to support Libya’s rebels with air support, NATO was getting ready



Malta’s air space had to be crossed by NATO’s planes before any attack. Coverago’s GMAs therefore listened to Malta’s air traffic control to ensure the earliest possible news coverage of an impending assault



Coverago News was the first media source to publicize that French aircrafts started flying high-speed-low-altitude flights and that UK jets were taking a combat approach



Coverago News was also the first English source to announce the participation of two Gulf State countries in the attack on Libya, translated in real-time by our Arabic speaking GMA Coverago News used multi-language teams to track geo-political events for a commodities trader, leveraging every possible source to provide our client with a competitive advantage. This was a showcase for the creativity of Coverago News – demonstrating the broad range of sources and intellectual resourcefulness of our GMAs. 62

Trading Case Study: Pfleiderer AG Pfleiderer AG CEO Related Events from December 24, 2010 

3:31 AM ET: Pfleiderer's CEO Hans Overdiek sold 41,500 shares amidst the difficult times faced by his company



The shares were sold at € 2.75



Pfleiderer has a very substantial amount of debt, which has forced the company to close down 3 of its plants in Germany



 

Earlier this week, Pfleiderer signed a standstill agreement with its lending banks which gives the wood manufacturer until March 2011 to restructure its financial situation 3:40 AM ET: Hans Overdiek, has sold an additional 74,990 shares Overdiek sold almost the same amount of shares in late 2009 but earned three times the amount in 2009

$2.70

$2.50

$2.30

$2.10

(32.0% )

$1.90

$1.70

$1.50



It was unclear why the CEO decided to sell his shares at the present time, as the share price was significantly lower than what Overdiek had paid for the shares at the time of purchase



Pfleiderer announced on February 8th, that it would be posting a Shares loss for fiscal yearfrom 2010December – explaining24th through the loss announcement. fell 32% Overdiek’s sale th

From December 24 through today this story has not been covered by Bloomberg or Reuters. 63

al Case Study: Former Governments in Nations Surrounding Russia 2011 Congressional Investigation and Hearing 

A large, global law firm requested coverage of two clients, who were under Congressional investigation regarding their dealings with former governments in nations surrounding Russia



The companies, along with the U.S. Department of Defense, were accused of having corrupt dealings with prior regimes



Coverago’s client requested coverage of clients and individuals related to the clients – effectively any news at all related to the clients





This type of research is incredibly time consuming and difficult for a law firm to do internally



Given the global footprint of the case, Coverago News was able to add a level of depth not available at competing firms

The Coverago News client was able to defend the clients successfully

Coverago News was a trusted resource for the law firm in a high profile case involving the U.S. and foreign governments. This was a showcase for the power of Coverago News – in depth, real time news in several languages created custom for out clients and impactful in its results. 64

rivate Investigator: 12 Deep Dives Due Diligence on companies, management and board members 

A large private investigator approached our company

Example: Acquisition Target in Peru

for help with his due diligence process on international transactions 



back 5 years searching through local

Coverago’s objective was to help his client assess

newspaper archives, blogs, and court

counterparty risks, political connections and any other

documents

kind of potential liabilities a potential partner or





by senior management and board

Coverago’s GMAs created historic deep-dives going back 5 years

members 

Among them:



The principal of the company tried to

Sources included chat forums, blogs, national newspapers and especially local archives to reveal any

bribe a former major of a small town 

A Director of the company was accused of forcefully taking possession of land

predicaments the company, board or management may have been involved in

Coverago’s research team uncovered numerous offenses and legal liabilities

acquisition target could have 

Coverago’s Spanish GMA team went

for personal use 

A blog published a document showing a second Director who misappropriated funds from a water company of which

he was a board member These reports uncovered local lawsuits, charges and unorthodox business dealings business dealings

65

risis Management Case Study: Fukushima Crisis: Fukushima Daiichi nuclear power plant 

A global Public Relations firm hired Coverago to provide local media insight for their client, a multi-national industrial company with reputational risks from the fallout of the Mark 1 containment facility at the Fukushima Daiichi nuclear plant



The company has been using the service extensively as a source for internal research distribution, which is critical in reacting to the crisis situation and planning for continued developments Example of breaking real-time coverage: 30-March-2012 30-March-2012 12:02 12:02 AM AM EDT EDT Former Former GE GE Employee Employee Points Points Out Out Fukushima Fukushima Nuclear Nuclear Plant Plant Design Design Weakness: Weakness: Summary: Summary: •• Former Former GE GE employee employee Dale Dale Bridenbaugh Bridenbaugh said said in in an an interview interview with with Mainichi Mainichi Japan Japan that that there there is is aa weakness weakness in in the the design design of of reactor reactor containment. containment. •• Dale Dale Bridenbaugh Bridenbaugh was was responsible responsible for for evaluating evaluating the the safety safety of of Mark Mark 11 nuclear nuclear reactor. reactor. •• In In 1975, 1975, Bridenbaugh Bridenbaugh argued argued to to stop stop the the operation operation of of Mark Mark 11 reactor reactor because because the the reactor reactor is is not not designed designed to to withstand withstand the the pressure pressure ifif the the containment containment lost lost cooling cooling water. water. •• Bridenbaugh’s Bridenbaugh’s supervisor supervisor curbed curbed the the debate debate by by saying saying “GE “GE will will not not be be able able to to sell sell reactor reactor ifif we we stop stop the the operation operation in in electricity electricity companies”. companies”. •• GE GE improved improved the the structural structural strength strength for for the the containment containment and and installed installed valves valves which which can can decrease decrease the the reactor reactor internal internal pressure pressure after after the the U.S. U.S. Nuclear Nuclear Regulatory Regulatory Commission’s Commission’s experts experts pointed pointed out out the the design design problem. problem. Source Source (Japanese): (Japanese): The The Mainichi Mainichi Daily Daily News News [Link] [Link]

66

Section 6c:

NewsMercato Screenshots

67

ewsMercato: Mass Market Delivery of Coverago News All the integrity of Coverago News is captured in NewsMercato 

“Themes” in Coverago News will be “Topics” in NewsMercato



NewsMercato is the first news tool available to all customers – the small to the institutional – that provides human, bespoke reporting and analysis in real time



Existing news products use algorithms as a cheap method of searching companies and themes, but this comes at the expense of quality. Algorithms can: 

Exclude relevant information



Include immaterial information and duplicate stories

68

wsMercato: Searchable and Easy-to-Use, Automated Interface Easy-to-use interface that diminishes the need for direct sales and encourages Request a quote for Create a “proprietary” marketplace participation something we don’t request which will not Searc h

already cover in the language of your choice

appear in others’ search results

Instantly stop or restart requests, or change email delivery settings

Limit search to just companies, topics or newsletter s

If a request is too expensive, set a price trigger and receive coverage when it becomes affordable

69

ewsMercato: Discover or Create Bespoke Newsletters Discover and edit existing newsletters, or create new ones using search and intelligent suggestions Example recent

Share with others to help lower price

Search for newsletters: Soy in Latin existing America newsletters and see which requests they are composed of Intelligent suggestions help you discover newsletters , or companies & topics to include in your existing Rajat Gupta newsletters

Drag and drop existing requests from your “manage” tab to create your own newsletters, per iTunes Edit your own newsletters

70

ewsMercato: Dynamic and Transparent Pricing One, dynamic, market price instantly available for each request, determined by supply and demand  Individuals help lower market prices by making recommendations and increasing aggregate demand See real time pricing for ongoing news Recommendthan companies, newsletters to increase  Customers may be willing to pay less for some requests otherstopics andand can set price already covered, by language. Request demand and lower price. Lower prices encourage impulse triggers beginfor coverage when the price becomes low enough new languageto coverage a predetermined price

Receive news alerts when your price trigger has been hit and when pricing changes. If the price falls, the customer benefits immediately. If it increases, customers are notified and only pay the higher price at the end of the month

and more frequent purchases

Buy historical news. See historical dates already covered, by language and request quotes for periods not already covered

Set price trigger so that if pricing becomes affordable, the client automatically begins receiving coverage

71

NewsMercato: Intelligent Suggestions Suggestions related to search, past purchases and general popularity automates part of the sales process and diminishes the need for direct sales On the Company

pages, and throughout the site, related companies, topics and newsletters are suggested

Home page suggests company, topic and newsletter ideas based on what’s popular, what you’ve bought in the past, and what your friends are reading New coverage in other languages is suggested for historical rollups and ongoing news requests

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wsMercato: Viral Promotion via a Recommendation System Incentivize existing customers to invite friends, share recommendations and create interesting newsletters available for resale using (1) credits and (2) a promise of prices on existing requests lower Customers who invite others Keep track of credits earned from recommendations

receive what they spend in their first month in credits 1 company request at average assumed price of $5/day = $150 credit 1 newsletter request at average assumed price of $60/day = $1800 credit 

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Customers can help lower market prices by making recommendations and increasing demand via email, Facebook and Twitter Price declines offset by volume increases Network effects: lower prices boost demand which lowers prices etc Margin expansion from resale of existing coverage Facilitates customer base expansion beyond current, institutional, mostly finance clients to other industries and a retail client base

Reminder to invite others to NewsMercato to earn credits and lower market prices

Users encouraged to share newsletters and other requests via email, Facebook and Twitter

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Section 6d:

Creation Technology Tools Screenshots

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Initiation: Company & Topic Structured Wiki Institutionalize and share GMA research and search methods

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Monitoring: QSpace For each company and topic request channel disparate news feeds into a single, easily monitored news queue News Bundles: List of news items generated from company & topic pages Bundle Queue: News relating to individual requests grouped into separate monitoring queues

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The Authoring Tool Push the automation envelope to maximize efficiency, throughput and resellability using (1) full text extraction (2) machine translation (3) entity extraction and (4) auto-summarization

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The Editing Tool Maximize quality and relevancy of each news story

Avoid duplicate stories by seeing recent headlines already published

Metadata/ Entity tagging

Summary View

Full text extraction from original article

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