T h e L a r g e s t Y e l l o w P a g e s & D i r e c t o r y f o r t h e NRI C o m m u n i t y BUSINESS PLAN www.COPPERPAGES.com Hik there Prepared for Investor Date April 2007 CopperPages.com Contact Preeti Gupta 888-55-Copper (tel) 888-552-6773 (tel) 201-892-6094 (cell) [email protected] Proprietary and Confidential Confidential & Proprietary -- пѓ“ CopperPages 2007 No part of this document may be circulated, quoted, or reproduced for distribution without prior written approval from CopperPages.com. Executive Summary вЂў CopperPages.com is the largest Yellow Pages and Directory Resource for NRI cross-border and intra-country listings. We will be the вЂњGateway to IndiaвЂќ for 1) NRIs, 2) Mainstream markets accessing India, 3) Visitors to and from India, 4) B2B entities in Outsourcing, Import, and other industries. вЂў Market size estimated at $2 billion to reach NRIs worldwide. (This does not include revenue for E-Commerce, Ticketing, and cross-border services) The global Yellow Pages industry is estimated at $30 bil, and global Local Search at $100 bil. вЂў Opportunity to be the leader in this area with only one indirect competitor, which has many weaknesses. However due to its monopoly it is generating significant revenue, showing proof-of-concept. вЂў We are unique from other players in that we will ONLY be a Yellow Pages and Directory with automated, scalable, userpopulated tools and services in under-served and revenue-generating niches. There will be no вЂњleisure contentвЂќ. вЂў Our team is the STRONGEST in the market. Founder has significant experience 1) as a serial Entrepreneur, 2) with the Internet/Intranet, and 3) in South Asian community and media. Exceptional technology and design team outsourced abroad with low operating costs. вЂў Website launched in the U.S. and marketing campaign has started, with traffic and revenue. вЂў $125k and 3 years already spent to create significant Barriers-to-Entry in operations and data, with a proprietary data sourcing method to get NRI listings in almost any country, and a database of 100k NRI listings (over 20 times the size of our nearest indirect competitor). Looking for $1-2 million to grow Brand Name to the same level. вЂў Opportunity to earn significant cash cow revenues with our tremendous lead. The ad revenue being spent on Zee TV, India Abroad, Sulekha, and other media will FIRST FILTER through us once we capture the Yellow Pages niche. вЂў In 1-3 years we will be the TOP acquisition target for the companies being funded in India today due to our 3 invaluable assets 1) NRI traffic, 2) NRI Ad Revenue Base (Lexus to Patel Bros), 3) NRI business listings. Table of Contents вЂў The Mission вЂў Risks / Barriers to Entry вЂў The Opportunity вЂ“ Market вЂў Strategy вЂ“ Why WeвЂ™re Different вЂў The Business Model - Directory Services вЂў Management Team вЂў Revolutionizing Search and Bid Requests вЂў Operations and Marketing Plan вЂў The Consumer Opportunity вЂ“ Yellow Pages вЂў Funding Allocation/Expenses and Revenues вЂў The Advertiser Opportunity вЂ“ Yellow Pages вЂў Why Invest? вЂў Ecommerce and Web Services вЂў Appendix A вЂ“ Calculation for Market Size вЂў Classifieds вЂў Appendix B вЂ“ Competitors and Features Comparison вЂў Community Events вЂў Appendix C вЂ“ Screen Shots and Operations вЂў Career Classifieds вЂў Appendix D вЂ“ Yellow Pages and NRI Statistics вЂў Movie Showtimes вЂў Appendix E вЂ“ Where We Are Currently Advertising вЂў Ticketing вЂў Appendix F вЂ“ Partial South Asian Print / TV Media List вЂў Competition вЂў Appendix G вЂ“ Cross Border Competition / Other Confidential & Proprietary вЂ“ CopperPages Inc. 2007 The Mission For Consumers вЂ“ We will be THE Yellow Pages and Directory Resource for cross-border and intra-country NRI listings. For Businesses вЂ“ We will be the FIRST STOP for advertisers trying to reach the NRI market. The Opportunity In the mainstream market: - 35% of Business owners advertise in a Yellow Pages - 90% of adults use a Yellow Pages Why Yellow Pages? - Searchable - Permanent - Inexpensive - Higher ROI from Customers - Customer calls the advertiser 88% of the time in YPages vs. 7% in Print - Customers spend 25% more thru the YPages than other media The Opportunity South Asian Market вЂ“ no Yellow Pages yet current South Asian advertising spend will flow through CopperPages first South Asian Advertising The Opportunity вЂ“ Market We are the place for 1) NRIs looking to find an Indian Photographer, Babysitter, Tiffin Service, Hindi Teacher, Cremation Services, or other related business 2) Mainstream consumers looking to find Indian Travel Agents and Tourist Packages, Mehndi вЂњTattooвЂќ Artists or inexpensive Medical care in India 3) Visitors from India looking to find Indian Restaurants, Hotels, or Grocery Stores 4) B2B entities looking to find Outsourced Services, Importers, or other cross-border, global listings. вЂў There are approximately 20 million South Asians living abroad worldwide. 2 million live in the U.S. and Canada, 1.2 million in the UK, and 0.4 million in Australia. вЂў Immigrants and those born here still have strong ties to their homeland and continue to purchase various South Asian goods and services. In addition, India is growing as a global superpower and the mainstream markets and companies need a gateway of access. Highest Median Household Income amongst any ethnic minority: close to $ 60,000 p.a. (Asian Indians)3 Estimated Annual Buying Power over $65 billion M edian Family Incom e 60,000 50,000 Ind ian A sian 40,000 W h ite 30,000 вЂў It is estimated that $2 billion1 in advertising is spent to reach the Diaspora market. The global Yellow Pages industry is estimated at $30 billion, and global Local Search at $100 billion3. The Outsourcing and Import/Export industries are at $50-70 billion combined. Black Hisp an ic 20,000 10,000 0 1 See Appendix A for details 2 Institute 3 of Asian Studies at St. JohnвЂ™s University According to the Yellow Pages Association, see Appendix D for details Directory Services Intra-Country NRI Directory (Yrs 1 & 2) YPages E-Commerce Events, Showtimes, Ticketing Cross-Border Directory (Yr 3) Classifieds Career Classifieds Outsourcing NRI Investments in India Mainstream and NRI Travel to India B2B вЂ“ Import/Export NRI Events/Conferences NRI Charity Vehicles B2C вЂ“ NRI ECommerce вЂў We are a Directory resource with services that create efficiencies in the Diaspora market and are useful for practical every-day needs, there will be no News, Blogs, or вЂњLeisure ContentвЂќ. вЂў Like EBay, we create the tools and processes that enable users to submit their own data and interact and transact locally, nationally, and globally. вЂў All sections are revenue-generating, with most content being provided by the users/businesses themselves who already pay to publish this content offline. Outsourcing - IT, Legal, Accounting, Advertising, Payroll ($30 billion) B2B вЂ“ Import/Export: Housewares, Fabrics, Plastics, Leather, Medical Supplies ($20 billion) Events/Conferences вЂ“ Prabasi Event, TIE Bangalore event NRI Investments in India вЂ“ Real Estate, Mutual Funds Mainstream and NRI Travel to India вЂ“ Listings of Hotels, Airlines, Tours (does NOT include booking Tickets or Reservations) B2C NRI E-Commerce вЂ“ India-Authored Books, Wedding Clothes, Dance Costumes, Musical Instruments, Ayurvedic Medicine Charity Vehicles вЂ“ NRI Charity funds, Initiatives, Political Contributions Intra-Country Yellow Pages, E-Commerce, Classifieds, Events, and Career вЂ“ see upcoming slides Yellow Pages search вЂ“ More Relevant Results via Push/Pull вЂў We are going to offer more customized search via a Push/Pull method that will вЂњpushвЂќ out data that can be searched and sorted by numerous parameters вЂў Or the customer can вЂњpullвЂќ a customized search by submitting a Bid Request with their own specific questions which is then answered and displayed back to them in a customized comparison chart Yellow Pages вЂ“ Nth Tier Categorization (Push) 1st tier: Status Quo Search 2nd tier: Additional Search Category Years in Business Location (Country, State, City, Zipcode) Coupon Keyword Price Range (like Zagat) Yr. 1 вЂ“ partial code to be developed Ratings Ethnic Group 3rd tier: Customized Search Examples Import/Export Outsourcing Yellow Pages Classifieds Fabrics Legal Physicians Roommates - Shipping Services - Jurisdiction - Insurances Accepted - Veg vs NonVeg - Quotas Available - Contingency - Weekend / Office Hrs - Male vs Female - Fabric Types - Retainer Size - Languages Spoken - Smoker vs Non - US Representative? - Pets Allowed - Region (Punjabi, Sindhi) We will build the Nth criteria levels for 250+ categories by harnessing community domain knowledge by enabling Vendors to suggest further categorizations when they post their business listings, and awarding them CPP$ for their efforts. Currently, we already have this feature with general Categories, and we get 2-3 new Category suggestions per week. - Maximum Rent RFP / Bid Request вЂ“ Customized Bid Request Form Customer can specify which fields should be answered in Free Text form, Dates, Prices, Yes/No, or Multiple Choice CPP will save commonly asked questions for each category so customers can choose questions from already built templates, and we will award CPP$ to customers who contribute new questions to the RFP process Vendor Fills out Customer Gets Info back, customizes Data Display This chart display will be very flexible, the customer will be able to sort/shuffle vendors and criteria, hide rows or columns, and make internal notes Yr. 1 вЂ“ all code to be developed Pull Available for Date 1/11/08? Describe a Package costing $1000 Package Price Range Black/White Photos Do you include Albums and which kinds? Please describe your other packages Backdrops included? Name of Photographer Contact Details Available? Price Range Black/White? Equipment? Vendor 1 Yes $1200 Cannon 350 Vendor 2 Yes $800$2000 Professional Sony 220v Vendor 3 Yes $4000 Vendor 4 Yes $2500 Vendor 5 No $3000 Packages The Consumer Opportunity - Yellow Pages Yr. 1 вЂ“ already launched LOCAL вЂў There is a need for an updated, comprehensive source of NRI Yellow Pages listings for people living within a particular area: п‚§ Recent Immigrants looking for attorneys, real estate agents, and driving schools that speak their native language. п‚§ Brides looking for South Asian wedding planners, photographers, disk jockeys, and beauty salons. п‚§ Families looking for South Asian nursing homes or funeral services, home cooks and nannies, grocery stores, or movie theatres. Search Page Multiple State, City, and Zip Code Search Category, Keyword, and Name Search Posting Page NATIONAL Despite the presence of a few local directories, there is also a need for a NATIONAL, Yellow Pages: п‚§ Young professionals temporarily residing in another city for work and wanting to join cultural organizations and locate South Asian grocery stores or restaurants during their stay. п‚§ People living in small towns who donвЂ™t have a lot of local South Asian goods and services and wanting to order from out-of-town. п‚§ п‚§ Brides and Grooms planning an out-of-town wedding. The Advertiser Opportunity - Yellow Pages вЂў There is also a great need for business owners to have a permanent, wide-reaching, affordable platform to advertise their goods and services: вЂў The cost of producing Newspapers, TV and Radio programs is capital-intensive, so most media must charge a minimum rate even to small advertisers. In addition, the advertiser must shell out large funds weekly or monthly to appear in these temporary media. вЂў Also, there are 100s of papers and programs and even small businesses must advertise in several to reach just a fraction of the community. Search Results Pages Yr. 1 вЂ“ already launched вЂў Unlike printed directories which are issued once every 1-2 years, the Internet platform allows business owners to change their information anytime, advertise seasonal promotions, and be visible under several categories, subcategories, zip codes, keywords, and other search criteria. вЂў For all these reasons, the online NRI Yellow Pages platform will be the first avenue of advertising when a new NRI business opens its doors, just like any mainstream business would first register itself with a mainstream Yellow Pages. Only AFTER joining CopperPages.com will businesses allocate their budgets to other temporary media platforms. SubCategory Banner Ad Sponsored Listing Section Banner Ad Distance Expansion Coupon Expanded Listing Basic Free Listing Report Wrong Info Area Map Multiple Locations Yr. 1 вЂ“ all code to be developed Ecommerce Web Services Home Sports - Cricket Sets - Carrom Boards Shop by Product Shop by Store Specials Featured Products: Instruments - Tabla - Sitar Dance - Ghungroo - Costumes Featured Stores: Kitchen - 220v Mixies - Coffee Grinder Beauty - Shahnaz Herbal - Hair Oil Housewares - Luggage - Silver Artwork Featured Specials: Redeem your CPP$ for free shipping! My List Note: CPP will NOT carry any inventory. We will simply allow vendors to upload their products through their CPP store and call our Customer Service hotline in India with any questions. Vendors will pay a flat monthly fee as well as per transaction and also pay to showcase their products on the CPP Ecommerce home page. This is different from existing Ecommerce sites like Rediff or IndiaPlaza in that we are a platform or bridge connecting NRI Vendors to NRI Customers, just as we already bring them together via the Yellow Pages and Bid Request. We are not selling gifts to India or selling our own product. Static Web Services вЂў Content Websites: Many small businesses in the community want a web presence but are webilliterate. We have created the largest template collection available to the NRI community, as well as a Self-Help tool allowing business owners to edit and maintain their own web content. This has been our most popular service to-date. We have created an online вЂњTutorialвЂќ visible at http://www.CopperPages.com/demos/webedit/web edit.html to automate the training process. All Website pages listed in вЂњFile ManagerвЂќ with ability to Edit, Add Pages, Copy, and Delete вЂў E-Commerce Websites: In addition, we will be building the same engine for businesses who want a вЂњShopping CartвЂќ functionality, as most of them cannot research and manage a web team to do this on their own. They will be able to maintain their own products in the Shopping Cart, and have their own Credit Card merchant account. We will create one master вЂњShoppingвЂќ page like Amazon which will list all the stores by Category, and promote products for a fee (esp. during festivals like Diwali). This will serve a pressing need for customers who have called us in the past looking for specific items like вЂњCricket setsвЂќ or вЂњTablasвЂќ but canвЂ™t figure out which stores to contact. Microsoft Word-type tool for easy editing, including Hyperlinks, Font, Colors, etc. Yr. 1 вЂ“ already launched Classifieds Yr. 1 вЂ“ already launched вЂў The Classifieds section is a revenue-generating extension of the Yellow Pages. Listings for temporary services and sales of goods that are not appropriate for the Yellow Pages directory will be displayed here. вЂў Although there are current local classifieds listings in newspapers and portals, there is also a need for a NATIONAL platform that has a comprehensive listing of Classifieds: вЂ“ Businessmen looking to move cross-country, wanting to buy a Dunkin-Donuts or South Asian grocery store. вЂ“ Immigrants or young adults/students looking for roommates in another city. вЂ“ Families looking for a travel companion for their young child or older grandparent going to India alone and in need of someone to watch over them during the flight. вЂў Opportunity to further distinguish ourselves among other Classifieds by maximizing the advantages of the Internet platform and search capabilities as in the following example: вЂ“ Roommates and Rental вЂ“ searching by advanced criteria such as: 1) Start date of lease, 2) Square Footage, 3) Furnished vs. Non-Furnished, 4) Vegetarian vs. Non-Vegetarian roommate, etc. Search Page Search Results Page, Condensed View Community Events Yr. 1 вЂ“ already launched вЂў The Events section is a needed resource in the community. There are Event listings available through competitor websites, national and local, but most of them are simple in their search, posting, and display functionality. We have added unique, proprietary features such as allowing organizers to post Multiple Locations for an Event (I.e. Asha Bhonsle concert in several cities can go under the same listing). Community Eventsbased on customer feedback, we will be adding an вЂњOngoing CalendarвЂќ feature which will allow Dance and вЂў In addition, Music schools, Religious classes, Radio and TV programs, and other ongoing community organizations to post their schedules for ongoing events, a service which is not offered anywhere currently. Posting Page for Community Events allowing self-content population and automation Career Classifieds вЂў The Career Network is not yet launched but is in development. It will be divided into 2 sections: 1) Job Network, 2) EntrepreneurвЂ™s Network. It will offer traditional functionality such as Resume and Job Posting and Search. However it will also incorporate issues specific to our community such as H-1, H-4, and Greencard sponsorship. In addition, the EntrepreneurвЂ™s Network will encourage the posting of startup and investment opportunities and cater to the growing number of South Asians looking to start their own business. вЂў There is no such service available in the South Asian community, except for Job subcategories under the Classifieds heading in Newspapers and Web Portals. Currently, we also offer the same functionality, but will be expanding it close to the size of a Monster.com or Naukri.com to allow a more detailed search and posting capability, as well as Employer and Employee matching, and other advanced features. вЂў We already have several businesses awaiting its launch and willing to be paid customers, including Prudential Insurance. Yr. 2 вЂ“ partial code to be developed Movie Showtimes Yr. 2 вЂ“ completely developed but not launched вЂў There is no brand name website that offers a listing of Movie ShowtimesвЂ“ currently the community must call each theater separately or rely on word-of-mouth. In keeping with our mission as a Directory resource only, we do NOT offer Movie Reviews, only Showtimes and Theater information. Also in line with our goal of automation and scalability, we have created a self-posting form that allows Theater Owners to post their own Showtimes and a back-end functionality that alerts them via email if they have not posted Showtimes for a particular week. Showtimes on Front-End for Theater in New Jersey Posting form on Back-End for Movie Distributors / Theater Owners to post their own Showtimes Ticketing Yr. 2 вЂ“ completely developed but not launched вЂў Ticketing services will increase the CPP brand name as organizations will advertise the link to our website where their attendees can purchase tickets. This will serve as low-cost publicity for us, in addition to generating revenues on each ticket purchase. вЂў This service is also Front-End Ticket Link Back-End Ticket Sellers Report automated, in that all purchases, reports, and changes are made online. No paper tickets will be printed or mailed. The organizer can access all reports and buyer information on the backend, through their Account. Currently, there are a few other websites offering this service, however we offer the most backend functionality and flexibility. вЂў In addition, we are working on a вЂњReserved Seating ChartвЂќ capability which is not currently available in the market. This will allow us to sell tickets for all kinds of events. 1 to 3 yr plan - Services, Target Market, Regions Yr 1 Yr 2 Yr 3 Services Initial Focus: Additional Focus: Yellow Pages E-Commerce RFP / Bid Request Classifieds Feature Improvements: + Relational Advertising (showing products or info related to each other in cross-sections of the site) + Pay Per Click / Call / Transaction + Data Mining, CoBranding, other revenue sources and some Community Events Sections + Ticketing + Movie Showtimes + Community Events вЂ“ ongoing calendar + Career Classifieds + Cross-Border + Outsourcing + Import/Export + NRI / Foreign Investment Vehicles + Alliances with Sites from India + Travel (MakeMyTrip, Yatra) + Entertainment (Donwloadable movies) + Career (Naukri) + Indian Govt (Charity Vehicles, Railways) Note: The focus in Yr 1 is on those services which bring the Customer to the Vendor. The Vendor will be willing to upgrade their free ad to a paying ad if they get customer calls and sales from CopperPages. The Bid Request process brings value to the Customer not obtainable elsewhere by allowing them to reach multiple vendors through our system and easily compare vendor responses. It also brings value to the Vendor because it is sending them live customer leads. Ecommerce will also increase Customer calls to Vendors because it will showcase specific products which they cannot learn about elsewhere as TV, Print, and other advertising platforms donвЂ™t offer such detail. Target Market NRIs Visitors from India + Mainstream markets + B2B Regions US Canada + UK + Australia + Africa + Malaysia Competition вЂ“ Very Little (see Appendix A-C for more detail) вЂў Sulekha - Community and blogs are the focus - Temporary Classifieds are being treated as a Yellow Pages - Only 5k listings in Yellow Pages (CPP has 100k) вЂў Search Engine (Google) - Missing data: They only pick up websites, not retail locations, comparative search on CPP vs Google shows we are better - Less Relevant data: The presentation of results is not as efficient for the user due to lack of attributes such as Geocoding and Nth-tier Categorization - Lack of Bid Requests: More difficult to directly bring the Customer to the Vendor unless contact info is uniformly captured like in the Yellow Pages вЂў Mainstream online Yellow Pages (Yahoo) - No Indian Categories: Only one is вЂњIndian RestaurantsвЂќ Competition вЂ“ Companies (see Appendix A-C for more detail) вЂў Sulekha.com + Strong monopoly in the U.S. and some Brand Name abroad, $6 million Gross Revenues for 2004, just received $10 million in funding from Norwest Venture Partners (see Appendix ) - Only has ~5000 Yellow Pages listings for U.S. (mostly in West and East Coast), which are not well categorized and little functionality - Has abundant Classifieds and Events data, but poor search functionality and organizationвЂ¦also offers some Ticketing and Movie ShowtimesвЂ¦there is no Career Network - Trying to do too much as a portal, has a lot of content driven areas that do not add to the bottom line, old data, inconsistent navigation and poor user-interface, and frequent website crashes. Problems are also related to trying to capture the India and NRI market with limited resources. вЂў PlanetGuru.com + / - Used to be the largest online and printed Yellow Pages for 17 cities (NYNJGuru.com, ChicagoGuru.com, etc.)вЂ¦but has been dormant recently and Brand Name has faded - Yellow Pages used to be very poorly organized, not much functionality, has only 7,000 listings - Also trying to be a portal, too many sections with shallow coverage вЂў Rediff.com + Big brand name nationally and internationally, could copy us if they wanted to + Has resources, large team, and national contacts - No Yellow Pages or other services for U.S.A., mostly based in India вЂў Local Portals (IndoLink.com вЂ“ CA, AapKaManoranjan.com вЂ“ MA, MiIndia.com - MI) + / - Some brand name in local areas, but out-of-towners will not know about sites - Most offer only partial data and functionality of CopperPages вЂў Printed Directories (Rose Pages (Chicago), Fast Yellow Pages (CA), etc) - These are printed sporadically, with few listings, few copies, minimal geographic coverage, and with limitations inherent in print vs. online Competition - Summary вЂў Most websites are trying to be portals, with news, movies, music, sports, recipes, columns, ecards, books, and other content-driven sections that require resources to create but do not add directly to the bottom line or appeal to the average busy consumer. вЂў Many websites are trying to cover several geographic regions at once without properly covering any one area. вЂў Most websites are poorly designed and very difficult to use. Also most of them do not advertise and have inconsistent branding. вЂў Some websites or companies have a Yellow Pages and Directory services, but they are incomplete or infrequently updated, with no zip code, multiple-state, city, keyword, last name, or expanded search functionality, limited categories, and few automated posting and editing features. No portal currently has separate Career Network or Web Services. (see Appendix B for details) вЂў As a result, these portals are like department stores вЂ“ good for visitors who want to get a little of everything, but not for those who desire quality, detailed information in a niche area (like hard-core Bollywood fans who visit Raaga.com or Indiafm.com or singles who visit Shaadi.com for matrimonials) Despite its many weaknesses listed above, our one indirect competitor, Sulekha.com, is generating annual gross revenues of $6 million due to its monopoly. It is evidence of the strong untapped market. There is a rare opportunity to enter a lucrative and proven market with no strong competition and quickly become the leader. Risks / Barriers to Entry вЂў Only room for 2 or 3 Players Unlike content websites where visitors judge the site subjectively, Yellow Pages and Directory websites will be judged mainly by quantity and accuracy of data. The first 2 or 3 entities to become a brand name will enjoy a significant competitive advantage. The risk is having a larger brand name like Sulekha or Rediff copy our layout, strategy, and data and capturing the market before we do. вЂў Mitigating Factors Currently there is no direct competition in the Yellow Pages NRI market. CopperPages.com has built up a strong Barrier-to-Entry by creating a database of 100,000 listings, 75% of which has not been released yet and will be launched once we have increased our Brand Name and Traffic. In addition, we have a proprietary method of extracting South Asian businesses from almost any country in the NRI market вЂ“ UK, Canada, Africa, New Zealand, etc. - which took us a year to build. The lead in data is in addition to the superiority we already have in terms of features (see Appendix B). Because we are focusing our resources on this revenue-generating niche, we will continue to widen the gap between our position as the Yellow Pages leader and other multi-purpose media. Strategy вЂ“ Why WeвЂ™re Different (Focus, Customization, Automation, and Quality) вЂў We are going to focus on revenue-generating, automated, scalable, and practical-use niches in the Yellow Pages, Directory, Career, and E-Commerce areas. вЂў There are already many providers of news, Bollywood reviews, travel, blogs, and other resource-intensive content. We are going to be the leaders in a few strategic revenue-generating areas which are untapped or under-served, most needed by the NRI market, and complimentary to each other under the Directory umbrella. We will capture a few verticals at a time and cement our position as leaders before expanding to the next. вЂў Customized Search Results to the Nth Degree and Advanced Technology вЂў We plan to use our revolutionary Search customization technique (slides 7-9) and advanced technology such as AJAX to deliver the user highly relevant data in their search results. вЂў Quality Control of Data and Automation - Once we achieve significant market penetration, the UserвЂ™s job is to populate CPP with data, our job will be to maintain the quality of the data and to continue creating great marketplace tools. вЂўFor example, CPP does not allow user-submitted listings to be displayed until after CPP has unflagged them вЂ“ preventing foul language, racial/political biases. There is a automatic filter process in place to guard against duplicate data. вЂў As a further example, all data is ranked according to its source and likely accuracy and stamped with a date when entered or updated. Upon expiration, 3 automated emails followed with 3 automated phone calls are made to ask the User to re-confirm the listing. If a response is not obtained, only then is a live call made to manually verify the data. вЂў Another way we save labour costs is the creation of self-help online tutorials which train the User to use services on CPP (see Web Services, slide 14). CPP$ earned for contributions, and ability for us to Approve or Delete a Listing Duplication Warning Strategy вЂ“ Why WeвЂ™re Different (User Contributions and Incentives) вЂў Harnessing the User community and Domain Knowledge Masters вЂў To encourage the User to input and control his own data, our goal is to create incentives to contribute, although business owners naturally take advantage of the free advertising opportunity. вЂў CPP has a posting form for EVERY vertical awarding CPP$ to be redeemed for discounts on purchases or upgrades. The Account Control features allows them to track CPP$ and manage their contributions. вЂў For example, we may seed initial variables for the customized Search Criteria in each Category, but reward Users for alerting us when something is incorrect or missing. It is worth вЂњpayingвЂќ them in CPP$ and benefiting from Domain Expertise rather than paying our own team members to fill in the customized search criteria for 1000s of categories. Edit Listings (Yellow Pages, Events, Classifieds) Edit Ticketing Events Edit Website Edit Movie Show Times Strategy вЂ“ Why WeвЂ™re Different п‚§ Portals such as Sulekha.com are viewed as general websites. The CopperPages brand name (formerly known as IndoPakPages) is associated with Yellow Pages and Directory services. For example, we will be profiling other companies in our Print media. Businesses and Consumers have begun to recognize the unique CopperPages marketing campaign and further associate our company with Yellow Pages and Directory services. п‚§ In addition this strategy has allowed us to be in over 30 papers at little or not cost, coverage that normally would have cost thousands of dollars per week. BEFORE: AFTER CPP AD DESIGN: (Branding & CoBranding) Former Logo taking 15% to 25% of ad space Management Team вЂ“ Preeti Gupta (Operations & Marketing) Serial Entrepreneur 13 years South Asian Community Leader 18 years Internet Experience 10 years Media Experience 1-10 years вЂў ThinkIndia.com: Worked as one of 4 founding team members with ThinkIndia.com, an Indian portal based in Silicon Valley, CA that sold to Rediff (Nasdaq: Redf). Helped raise $3 million in VC funding, worked on website, including portal and screen shots, content sourcing, technology design, logos and marketing materials, and other areas. вЂў Participate.com: Consultants and developers of website community software such as message boards, chat rooms, and polls. Acted as consultant to several high-profile clients such as Staples and Kodak on increasing their web communities. вЂў IndoPakPages Inc: Internet / Intranet consulting and project management for large multinationals such as ScheringPlough. вЂў RajaRani, Inc. Importing / Exporting: First company founded. Sold 10,000 products in one year of operation at the age of 23 while working a full-time job. Nationally branded clients included Macys, Nordstrom, Fashion Bug, and Hot Topic. Worked in all aspects of the business, including sourcing raw materials, customs clearance and bulk purchasing from India, manufacturing and package design in the U.S., and marketing to buyers of national retail chains. вЂў Arthur Andersen: Auditor and Consultant for 4 years. Earned Certified Public Accountant (CPA) after graduating from college in 2.5 years. вЂў 2Crusade.com: Founder of community/petition software product. Raised $50k in Angel funding and had clients such as ESPN, Readers Digest, and Chicago Tribune. вЂў Euro RSCG Tatham: Advertising Manager for Vidal Sassoon and Bayer, working on print, TV, and radio campaigns. вЂў South Asian Community and Media: Active leader for over 25 years, having organized cultural programs, youth conferences, part-time Dance School with 60+ students, served as MC for shows and TV Host for local TV programs, column Writer in various South Asian newspapers, and other leadership roles. Intimately connected to the South Asian community, with a deep comprehension of its needs and business conduct, as well as being able to speak the language and form good relationships with all kinds of South Asian business owners and consumers. Other Team Members CopperPages has the STRONGEST team in the market. Many have commented on our superior design, layout, and user-interface, and our technology and services are unique and high-quality thanks to our extraordinary team. TECHNOLOGY: Marcos Francos Christiano (Buenos Aires, Argentina) вЂ“ TECHNOLOGY and PROGRAMMING: Handles all programming, database design, and technology support for CPP. Supervising a team of coders in Argentina who are also programming for CPP. Has worked as a manager at several large companies in Argentina, including government and newspaper entities with similar website and database design requirements. Roshan Gupta (San Francisco, CA) вЂ“ TECHNOLOGY: Previously with Oracle, currently with Yahoo, part-time collaboration with Marcos to design website and tables for CPP, and other miscellaneous network setup tasks, demo installations, and tech help for everyone on the team. DESIGN AND GRAPHICS: UraLabs (Ilichevsk, Ukraine) вЂ“ CPP WEB GRAPHICS and PRINT DESIGN: In charge of web design and user interface for CPP, as well as creation of all marketing materials and CPP logos. Efex Media (Delhi, India) вЂ“ DEMOS and TUTORIALS: Creation of client materials such as websites, banner ads, and cobranded newspaper ads. Prizmik Solutions (Delhi, India) вЂ“ WEB TEMPLATES: Creation of client materials such as websites, banner ads, and cobranded newspaper ads. DATA ENTRY: ADI Systems (Madurai, TN, India) вЂ“ DATA ENTRY: Doing all manual data entry for Yellow Pages, Classifieds, Community Events, and Movies. Nishant Bambay (Pune, India) - DATA ENTRY: Doing all automated data entry for Yellow Pages. Operations Short Term Source Data Long Term Maintain Data Quality - Indian Newspapers - Duplication Filter - Screen Scraping - Listing Expiration & Update process - Mainstream YPages - Incentive Contribution system via CPP$ Marketing - next slides Automated, User-Contributed Site - Account System - Auto Data Verification Process 15 Marketing Techniques Tested in 2006 1) Direct Sales by sending Media Kits to Citibank, Air India, etc., now we will send Online Demo http://www.copperpages.com/info/salesdemo.htm http://www.copperpages.com/info/salesdemo.swf 2) Flyers distribution (100,000) at high-traffic South Asian Grocery and Video stores, Restaurants, etc. 3) Newspaper Ads in local and national Indian papers 4) Press Releases in Indian papers Highest ROI, Lowest Cost: 5) TV ads local and national (Zee TV is the most effective) 10 cents/email for InfoUsa 6) Yahoo eGroups (60 South Asian) joined 7) Banner Ad Exchanges done with other South Asian websites 20-30 cents/visitor for Google 8) Email campaign (10 cents per email, have done 10,000 so far) 9) Phone campaign (6 cents per call, have done 10,000 so far) 10) Google and Yahoo Adwords/Overture Pay-Per-Click in 350 keywords 11) Sponsor local Indian events with booths 12) Asian/South Asian Ad Agencies contacted to present CPP as another media vehicle for their clients 13) Viral Marketing - Video Blog at YouTube, Vote Taj Mahal campaign, etc. 14) CoBranding deals (not fully tried yet, just G1G insurance, can try more) 15) Stickiness/Other Channels cultivated on CPP (Ticketing, Movie Showtimes, Photo Albums) to see if we could attract more traffic, but had to take code down due to limited maintenance resources 2007 Marketing Strategy for West Coast Printed Yellow Pages вЂ“ distribute to 50k households on West Coast, cost of $1.00 each, self funded through advertising sales Online вЂ“ Google Adwords and InfoUSA Emails CoBranding Print вЂ“ Share cost of advertising in Indian papers Logo taking 15% of ad space Voice Broadcasting вЂ“ Automated telemarketing, 6 cents per household Other вЂ“ ZEE & Local TV, Flyers, Event Sponsorship Funding Allocation / Expenses (Yrs 1-3) Yr 1 $150k Online PPC (Google and Yahoo): $10,000/month x 12 months Email Campaign (InfoUSA data): 10 cents x 500,000 emails Print Campaign: 10 newspapers x $250/month x 12 months $600k $45k (focus on West Coast) + $60k (East & West Coast) $10k (West Coast) $25k (West Coast) + $25k (E & W) $24k (National) + $36k (Ntnl) $3k (West Coast) $15k (West Coast) $60k (E & W) $10k (West Coast) $15k (West Coast) + $15k (E & W) $5k (West Coast) $16k (West Coast) + $7k (E & W) $18k (West Coast) + $32k (E & W) Wedding Expo & Event Sponsorships: 10 events x $5000 each Miscellaneous Marketing Materials: TV Ad creation, Flyers, etc. $1.5 mil + $60k (Ntnl) + $50k (Ntnl) + $60k (Ntnl) + $60k (Ntnl) $5k (West Coast) $10k + $50k India Advertising and Data Collection $40k UK and Canada Advertising and Data Collection TOTAL MARKETING $48k $168k Call Center for Data Verification: 100,000 listings x 50 cents $50k $50k PreetiвЂ™s Salary Full-time Designer Abroad $430k +$250k + $120k $530k $780k $1120k +25k + $35k $25k Call Center for Customer Service Full-time Programmer Abroad + $50k $30k $36k + $40k $6k $40k + $40k + $65k Head of India Operations $35k Customer Service and Admin Reps Abroad + $35k $115k Operations and Sales Person in UK Travel TOTAL FUNDING / EXPENSES + $35k $115k Operations and Sales Person for US and Canada Office Space, Equipment, Hosting, other Admin, Legal Fees $2 mil $25k (Ntnl) Online Banner Ads: $2000/month x 12 months Movie Theater Advertising $1 mil $15k (focus on West Coast) TV Campaign (Zee TV): 12 months x $4k - $10k/month Phone Campaign: 1,000,000 households x 6 cents Yrs 2 and 3 $300k $10k $10k $150k $300K + $15k $600K $10k + $10k + $35k + $15k $1 mil $1.5 mil + $10k $2 mil Revenue Projections (Yrs 1 -3) вЂ“ assume $300-600k funding in Yr. 1 REVENUES Total General Banners and Sales Overlays Section Banner Ads Database Sales & Licensing Newsletters Total Yellow Pages Expanded Listing Sponsored Listing National Listing Subcategory Banner Ads Pay-per-Click / Call Total RFP / Bid Request Pay-per-Bid Sponsored Listing Total ECommerce / Web Services Static Text & Graphic Websites ECommerce Sites ECommerce Promotion Page ECommerce Pay-per-Transaction $4,000 $21,600 $5,000 $12,000 $0 $300,000 $120,000 $12,000 $0 $8,500 $20,000 $0 $0 $0 $0 Total Community Events $0 Sponsored Listing Ongoing Calendar Listing $0 $0 Total Movie Showtimes $0 Total Ticketing Pay-per-Transaction Flat Listing Fee Seating Chart Event Upgrade Gross Revenues $0 $0 $0 $240,000 $720,000 $150,000 $28,800 $0 $10,000 $0 $14,500 $32,500 $2,700 $0 $105,000 $42,000 $75,000 $0 $75,000 $12,000 $0 $0 $0 $503,100 Assumes revenue for US and Canada in Yrs 1 and 2, and revenue in Yr. 3 for UK equivalent to Yr. 1 $12,500 $12,500 $0 $1,681,100 ($5 per bid x 25,000 vendors x 2 bids each) + 1.0 x Year 11 Not sure if this will be fair to the Customer $39,250 $86,750 $4,500 $0 (150 websites x $15/month + $75 fee for 50 new) + 1.0 x Year 11 (150 websites x $35/month + $75 fee for 50 new) + 1.0 x Year 11 (15 websites x 12 months x $25/listing) + 1.0 x Year 11 Not sure if we will get involved with this due to credit card sales $189,000 $189,000 (350 listings x $45/month) + 1.0 x Yr 11 (350 listings x $45/month) + 1.0 x Yr 11 $108,000 $0 (300 listings x $30/month) + 1.0 x Yr 11 Not sure if we will have this $54,000 (100 listings x $25/month) (100 listings x $10/month) $36,000 $18,000 (100 listings x $30/month) + 1.0 x Yr 11 (100 listings x $15/month) + 1.0 x Yr 11 $0 Not sure if we will charge or keep it free Not sure how much we can charge Not sure if we will develop this $25,000 Already developed, but not launched first year Already developed, but not launched first year Not developed first year $250,000 $0 $108,000 (250 listings x $25/month) Not sure if we will have this $0 Already developed, but not launched first year Not developed first year Not developed first year (5000 listings x $25/month) + 1.0 x Year 11 (5000 listings x $75/month) + 1.0 x Year 11 (1000 listings x $150/month) + 1.0 x Year 11 (35 cats x 2 banner ads x $75/month) + 1.0 x Year 11 Not sure, this might replace flat fees for other upgrades $378,000 (250 listings x $35/month) (100 listings x $35/month) $87,000 Free for the first year Not developed first year $1,500,000 $4,800,000 $1,920,000 $75,000 $0 $130,500 (100 websites x $10/month + $50 initial fee for 50 new sites) (100 websites x $25/month + $50 initial fee for 50 new sites) (15 websites x 12 months x $15/listing) Not sure if we will get involved due to credit card sales $75,000 Not developed first year Not developed first year (4 sections x 12 months x 1 ad x $1200/month) (4 sections x 6 banner ads x $400/month) (10,000 listings x 12 cents/listing x 50 sales) (12 newsletters x 5 ads x 6 regions x $300) $250,000 ($5 per bid x 1000 vendors x 2 bids each for the year) Not sure if this will be fair to the Customer $147,000 Free for the first year Free for the first year $57,600 $76,800 $60,000 $108,000 $8,295,000 (1000 listings x $20/month) (1000 listings x $60/month) (100 listings x $125/month) (20 cats x 2 banner ads x $60/month) Not sure, this might replace flat fees for other upgrades $49,700 (50 websites x $10/month + $50 initial fee) (50 websites x $25/month + $100 initial fee) Free for the first year Not developed first year $0 $0 $0 $0 $302,400 (3 sections x 12 months x 1 ad x $1000/month) (4 sections x 4 banner ads x $300/month) (10,000 listings x 10 cents/listing x 10 sales) (12 newsletters x 5 ads x 3 regions x $250) $10,000 Free for the first year Free for the first year $0 $0 $0 $36,000 $57,600 $10,000 $45,000 $1,138,800 Free for the first year (500 listings x $50/month) (100 listings x $100/month) (10 cats x 2 banner ads x $50/month) Not developed first year $28,500 $0 Charge for Theater Listing Movie Promotional Videos Downloadable Movies / Music (2 sections x 4 of 12 months x 1 ad x $500/month) (3 sections x 3 banner ads x $200/month) (10,000 listings x 10 cents/listing x 5 sales) (12 newsletters x 5 ads x $200) $0 $0 $0 Year 3 $148,600 $432,000 Sponsored Listing National Listing Employer Job Listings Matching Service Year 2 $42,600 Total Classifieds Total Career Classifieds 1 Year 1 $0 $0 $0 Not sure if we will charge or keep it free Not sure how much we can charge Not sure if we will develop this $30,000 (250 events x 50 tickets x $1.00 per ticket) (250 events x $50/event) Not sure if we will develop this or how we will charge $15,000 $15,000 $0 $9,547,900 (300 events x 50 tickets x $1.00 per ticket) + 1.0 x Yr 11 (300 events x $50/event) + 1.0 x Yr 11 Not sure if we will develop this or how we will charge Financials вЂ“ 3 Year Projections Total Revenues General Banners and Sales Yellow Pages Upgrades RFP / Bid Request Ecommerce / Web Services Classifieds Career Classifieds Community Events Movie Showtimes Ticketing Total Expenses Net Profit A U.S. and Canada B Launch in UK C Year 1 A $503,100 $42,600 $432,000 $0 $28,500 $0 $0 $0 $0 $0 Year 2 B $1,681,100 $148,600 $1,138,800 $10,000 $49,700 $147,000 $75,000 $87,000 $0 $25,000 ($600,000) ($1,000,000) ($96,900) -19% $681,100 Year 3 C $9,547,900 41% Launch in Africa, Australia, Malaysia, and other regions, as well as launch into Cross-Border Directory markets like Import-Export, Outsourcing, and Foreign Investment Vehicles Why Invest? It all comes down to ROI, and here are some POWERFUL reasons that make this extremely Low Risk and almost guarantee an array of lucrative Exit Options: вЂў The Business Model is not in question. The question is not WHETHER an NRI Yellow Pages and Directory will make money, but WHO will make this money? Compare the advanced progress CopperPages has made with its limited resources and time to slow progress made by larger media players here for many more years with much more money. We will be the undisputed leaders in this market. вЂў The current focus is on India. We are ahead of the curve by capturing the NRI market. In 1-3 years, we will be the TOP acquisition target for all the companies currently being funded in India when they decide to expand their presence to global Indians (NRIs). - Naukri.com, Yatra.com, IndiaGames.com, Seventymm.com, Mauj.com вЂў They will compete to acquire us for our 3 solid assets which will help them speed their growth: 1) Our NRI traffic 2) Our Cash-Cow Ad Revenue base (Lexus, New York Life, Patel Brothers) which we will generate with our tremendous lead since there is no major competition and we will be the FIRST STOP for advertisers targeting this market 3) Our South Asian Businesses Database (100k already, prob. 200k+ in the future) вЂў Or we will be acquired by a media company wanting to extend their media channels - Zee or Sony TV, IndiaTimes вЂў IPO may also be a distant option - Rediff (Nasdaq: Redf Share price: $17.92) Appendix A вЂ“ Calculation for Market Size M e d ia T yp e вЂў The total market size for media and advertising spending related to the South Asian diaspora is not available. U n its Estim a te d A n n u a l R e ve n u e T o ta l A n n u a l R e ve n u e S m all N ew s papers 20 papers x 10 s tates $250,000 $50,000,000 Large N ew s papers 25 $1,000,000 $25,000,000 5 $10,000,000 $50,000,000 Loc al TV P rogram s 2 program s x 12 s tates $350,000 $8,750,000 R adio P rogram s 5 program s x 20 s tates $150,000 $15,000,000 $1,000 $400,000 N ational TV S tations 20 s tates x 2 theaters x 10 M ovie Theater A ds вЂў Estimates based on rough calculations come to $500 million for the US market to $2 billion for the global NRI market. advertis ers O utdoor A dvertis ing $1,000,000 (B i l l b o a rd s, S h o p p i n g C a rts, e tc) G oogle A dvertis ing O ther ( F l ye rs, 50,0000 bus ines s $5,000 C u l tu ra l E ve n t P ro g ra m s, B o o th s, S p o n so rsh i p ) 250 events x 10 s tates $20,000/event $25,000,000 TeleM ark eting / D irec t S ales / D irec t M ail вЂў Note: This does NOT include potential revenue for ECommerce transactions, Ticketing, Bid Requests, and other services. $250,000,000 $5,000,000 Large W ebs ites 5 $5,000,000 $25,000,000 S m all W ebs ites 50 $30,000 $1,500,000 250 $250 $62,500 E -N ew s letters T o ta l A d R e ve n u e sp e n t to re a ch N R I m a rke t in U S $456,712,500 UK (65% of U S R evenue) $296,863,125 C anada (65% of U S R evenue) $296,863,125 M iddle E as t (65% of U S R evenue) $296,863,125 A us tralia (20% of U S R evenue) $91,342,500 A fric a (20% of U S R evenue) $91,342,500 (E quivalent to U S R evenue) $456,712,500 O ther C ountries T o ta l A d R e ve n u e sp e n t to re a ch N R I m a rke t G lo b a lly $1,986,699,375 Appendix B вЂ“ Competition: Comparison of CPP vs Google For local search on Indian goods or services, Google delivers far less results than CopperPages in most keyword searches, especially those for less common categories (i.e. Tailor) or less popular cities (i.e. Hinsdale, IL). Keyword Indian Photographer, Fremont CA Indian Tailor, Edison NJ CPP Google (results from 25k data only, 75k yet to be released) (no Expansion capabilities) 10 1 (3 initial and 7 additional within 25 miles) 7 Almost 0 (2 initial and 5 additional within 10 miles) Indian Real Estate, Fremont CA 35 0 Indian Grocery, Hinsdale IL 10 1 (2 initial and 8 additional within 10 miles) Appendix B - Competitor and Features Comparison Sulekha 1 CopperPages PlanetGuru 2 Print Directories 3 General / Other Services Comparison Yellow Pages / Classifieds Yes Yes Yes and No No Business Websites Yes No No No National and accessible free of charge? Yes Yes Yes No Quality Check / Pre-Approval Before Publishing Listing Yes Yes No Yes Automatic Notification of Entry Expiration Yes No No Maybe - Manual Account Points Awarded to Contributors Yes No No No Filter for Duplicate Contributions Yes No No Maybe - Manual Shopping Cart Yes Yes No No Online reporting of incorrect listings Yes No No Maybe - Manual User can edit their websites online, anytime Yes No No No User can update/upgrade listing online, anytime Yes No No No Display of upgraded advertising information in Account Yes Yes вЂ“ not US? No No Consumer Report / Newsletter Yes Yes No No Expanded/Condensed views on Classifieds and Events? 3 views 2 views 1 view N/A Allow Photograph for YPages, Classifieds, Events? Yes, Yes, Yes No, No, Yes No Not usually Automated SMS or Hidden Contact Info for Classifieds? No Yes No N/A Preview Yellow Pages and Classifieds listing? No Yes No Yes 1 Sulekha.com consists of Yellow Pages, Classifieds, Ticketing, Cricket, News, Blogs, Chat Rooms, etc. and does not have a printed directory 2 PlanetGuru.com is similar to Sulekha, but not as popular, and also prints local directories of its Yellow Pages which are free but not easily available 3 Other printed directories include Little India, Fast Yellow Pages, Muslim Pages, Rose Pages, etc. Appendix B - Competitor and Features Comparison вЂ“ contвЂ™d CopperPages Sulekha PlanetGuru Print Directories Yellow Pages Comparison Number of Categories and Subcategories 46 and 250 17-20 and 5 74 and 30 30 - 50 # of Listings 100,000 ~5500 ~7000 ~500 - 5000 Search by Business or Last Name? Yes Yes, but doesnвЂ™t show category No No Search by Keyword? Yes Yes No No Search by 50 States? Yes Not all, 16 states/cities Not all No Search by Multiple State? Yes No No No Search by City? Yes Not all, 16 states/cities Not all No Search by Zip Code? Yes Not working? No No Expanded Search by Zip Code? Yes No No No Associated "See Also" Categories shown Yes No No No Non-Zero Results feature? Yes No No N/A Multiple Categorization & Locations for listings? Yes and Yes No and No Yes No Regional highlighting of listings? Yes No No Yes Multiple Contact People and Phone Numbers? Yes No No Only in paid ads Expanded listings with description? Yes No N/A N/A Ranking of listings by quality and accuracy Yes No - Doubt It No - Doubt It No - Doubt It AdvertiserвЂ™s Report / Newsletter Yes Yes No No Coupons and Search by Coupons? Yes Yes and No No Manual, Printed Appendix B вЂ“ Competitors - Rediff REDIFF.COM INDIA LTD SELECT FINANCIAL INFORMATION FOR THE QUARTER OCTOBER TO DECEMBER 06 Figures in $ 000s Oct - Dec 06 Oct - Dec 05 Variance % Oct - Dec 06 Jul - Sept 06 Variance % Revenues India Online Advertising Fee based service Total India Online 4518 1168 5686 2221 941 3162 2297 103% 227 24% 2524 80% 4518 1168 5686 3624 1088 4712 894 80 974 25% 7% 21% US Publishing Offline revenues Online revenues Total US Publishing 1305 757 2062 1441 419 1860 -136 338 202 -9% 81% 11% 1305 757 2062 1307 644 1951 -2 113 111 0% 18% 6% Total Revenues 7748 5022 2726 54% 7748 6663 1085 16% 228 (77) 151 58% -9% 12% 620 787 1,407 540 793 1,333 80 (6) 74 15% -1% 6% 83% 28% 68% 5,066 1,275 6,341 4,172 1,158 5,330 Cost of revenues India Online US Publishing Total cost of revenues 620 787 1,407 392 864 1,256 Gross Margin India Online US Publishing Total gross margin 5,066 1,275 6,341 2,770 996 3,766 Gross Margin % India Online US Publishing Total gross margin 89% 62% 82% 2,296 279 2,575 88% 54% 75% 89% 62% 82% 894 117 1,011 21% 10% 19% 89% 59% 80% Operating Expenses Sales & Marketing Product Development General & Administrative * Total operating expenses 1,502 1,030 1,985 4,517 799 644 1,361 2,804 703 386 624 1,713 88% 60% 46% 61% 1,502 1,030 1,985 4,517 1,548 908 1,732 4,188 (46) 122 253 329 -3% 13% 15% 8% Operating EBIDTA 1,824 962 862 90% 1,824 1,142 682 60% (760) (351) (409) (760) (601) (159) 940 383 557 940 913 27 (489) (661) 172 (489) Depreciation/Amortization Interest Income Foreign exchange Gain/(Loss) Other Income Net Income from continuing operations before income taxes Tax Net Income/(Loss) * Stock-based compensation cost included in General and Administrative 6 1,521 (10) 1,511 437 (56) (433) 6 6 112 (106) 333 1,188 1,521 1,510 (10) - 323 1,188 - - (10) (15) 1,511 1,495 437 226 # of Advertisers 163 152 163 159 # Headcount at end of Quarter 288 266 288 288 Cash Balance $ mln at end of quarter 53.18 53.10 53.18 51.44 11 5 16 Financials for 3rd Quarter 20062007 for the Fiscal Year ended March 31, 2007. Note that total estimated 2007 Revenue is $30 million, US Revenues are $8 million, of which $3.2 million is online. Rediff does not specifically target the US anymore or the global NRI market, so the fact they are still earning significant revenues in the NRI market is further support of market potential. Appendix B вЂ“ Competitors - Rediff F is c a l ye a rs E n d e d M a rc h 3 1 in 1 0 0 0 s 1996 R e ve n u e s 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 0 86 516 855 1 ,9 0 6 5 ,6 2 1 7 ,8 5 9 8 ,5 7 2 9 ,4 4 6 1 2 ,6 2 7 1 8 ,7 0 1 C o s t o f R e ve n u e s 26 121 175 321 953 2 ,6 1 6 5 ,0 9 8 5 ,5 6 0 4 ,7 3 8 5 ,1 1 3 5 ,0 3 9 G ro s s P ro fit (L o s s ) (2 6 ) (3 5 ) 341 534 954 3 ,0 0 5 6 ,6 6 5 4 ,3 8 6 4 ,7 0 8 7 ,5 1 4 1 3 ,6 6 2 0 .0 0 % -4 0 .7 0 % G ro s s M a rg in s O p e ra tin g E x p e n s e s 6 6 .0 9 % 6 2 .4 6 % 5 0 .0 5 % 5 3 .4 6 % 8 4 .8 1 % 5 1 .1 7 % 4 9 .8 4 % 5 9 .5 1 % 7 3 .0 5 % 1 2 ,6 8 3 111 390 692 1 ,5 4 5 7 ,8 6 9 1 4 ,9 1 6 2 0 ,9 3 8 1 4 ,9 0 3 7 ,9 2 7 9 ,2 2 7 L o s s fro m O p e ra tio n s (1 3 7 ) (4 2 5 ) (3 5 2 ) (1 ,0 1 1 ) (6 ,9 1 5 ) (1 1 ,9 1 1 ) (1 4 ,2 7 3 ) (1 0 ,5 1 7 ) (3 ,2 1 9 ) (1 ,7 1 3 ) N et Loss (1 3 7 ) (4 2 5 ) (3 5 2 ) (9 8 5 ) (6 ,6 6 6 ) (6 ,3 6 5 ) (1 4 ,7 6 5 ) (1 8 ,9 8 1 ) -4 9 4 .1 9 % -6 8 .2 2 % -1 1 5 .2 0 % -3 4 9 .7 4 % -1 1 3 .2 4 % -1 8 7 .8 7 % -2 2 1 .4 3 % N e t M a rg in s 979 Appendix B вЂ“ Competitors - Sulekha February 15, 2005 Sulekha planning more city portals Sulekha.com, a popular global interactive online platform for the Indian community around the world with 60 city portals at present, plans to spread its footprint across India by setting up 20 more portals in Tier-II cities. The company, which has revenues in excess of $6 million, is also looking at forging alliances in the online and mobile spaces to supply value-added city content to the growing mobile and online customer base. "Sulekha will provide a comprehensive combination of city specific information and services including yellow pages, classifieds, events, citybased groups and discussions," said Satya Prabhakar, president and Chief Executive Officer, Sulekha.com Over 90 percent of the commerce and interactions in the new portals will be city-specific, he said. "Our target is to extend this concept of city portals to all cities and major towns in India," added Prabhakar. Presently, the company has 10 city portals in India with the balance in other countries like Canada, US and UK. The portal currently has around on million hits per month. "Millions of Indians worldwide learn, interact and network through Sulekha," said Param Parameswaran, Chairman Sulekha.com. The online company is said to be largest online ticketer for Indian events and movies in the US, with a 90 percent marketshare. Sulekha also operates a popular online classifieds for Indians in all its 60 city portals. It also has a tie up with MSN India. From Sulekha.com Press Releases: Sulekha Travel is one of largest niche web properties focusing on travelogues and encourages community interaction between people who are interested in travel. Sulekha.com enjoys 30 million page views and 1.2 million unique visitors a month and almost all the content in Sulekha Travel is member contributed.вЂњ (July 2006) Sulekha.com, the biggest and most popular online community portal has launched its Yellow Pages service on the WAP platform. This will enable users to access over 400,000 business listings through mobile phones anywhere in the world. This service is the first of its kind in India and is available to users having WAP enabled mobile instruments. (June 2006) Sulekha Classifieds, the print classified edition of Sulekha.com is now available at a host of conveniently located outlets in Chennai, Bangalore and Hyderabad. A whole gamut of information on rentals, real estate, business opportunities, houseshold & business services, automobiles and NRI matrimonials are available in Sulekha Classifieds each week. (March 2005) Appendix B вЂ“ Competitors - Sulekha I suppose Sulekha was bound to get funded. I never found Sulekha very usable, but they do have a dedicated userbase. Traction, as they call it, is critical to funding, as was repeated often at TIE Delhi 2006. (from Content Sutra, posted by Nikhil Pahwa on 11/1/2006) Responses: From rm вЂ” Thu 02 Nov 2006 12:02 AM there are much better sites to sulekha...web 2.0 is all about users, but sulekha took them users for granted and pumps out tons of ads on the face of user...crappiest site i ever visited From postal portal вЂ” Thu 02 Nov 2006 04:36 AM I am surprised with this development. Sulekha has no value offering, and is a very poor quality site. I guess the VC are also getting pressurised now.... From Anil вЂ” Thu 02 Nov 2006 05:22 AM I agree with everyone that Sulekha isnt a user friendly site and not at all on the Web 2.0 platform. But at the same time they have their fingers in many pies and have recently made an ad network too which will server CPC ads across SulekhaвЂ™s online properties (and maybe have a publisher network too). From postal portal вЂ” Thu 02 Nov 2006 05:57 AM Yes Anil, it has its fingers in many pies but is that a good thing or a bad thing? I have followed this site for some time, they take initiatives and then dont execute properly to the extent that some of the initiatives die prematurely. They started a matrimonial service that lasted less than 6 months, very recently. Since there was some traction in real estate, they started a real estate website but I dont see anything happening there. Anyway, maybe they needed money to pull all these stunts and maybe we see something worthwhile. All in all, its fuelling the online space. November 2, 2006 вЂ” Sulekha.com, the first and largest online social media and local commerce destination for Indians, today announced Promod HaqueвЂ™s global technology venture capital firm, Norwest Venture Partners (NVP)вЂ™s Series A investment of $10 million in the company. Sulekha, founded and run by Satya Prabhakar, received $4.5 million in prior funding from the Indigo Monsoon Group (IMG) over a 6 year period from 2000, led by Param Parameswaran and Harish. IMG is a private investment firm focused on early stage equity investments in Indian Internet and Mobile domains. IMG has made investments in Sulekha.com (leading online community for Indians integrating social media with local commerce), Fabmall.com (the leading pure-play ecommerce company in India), Indiaplaza.com (the most popular ecommerce destination for NRIs in US) and eShakti.com (leading online India-inspired and customized apparel retailer aimed at a global audience). Appendix B вЂ“ Competitors вЂ“ India Plaza Fabmall.com acquires US-based online shopping firm Our Bureau Bangalore , Jan. 18, 2007 The Hindu Business Online E-tailing firm Fabmall.com has acquired the US-based e-commerce company Indiaplaza.com for an undisclosed sum. With this acquisition, Fabmall.com has also re-branded itself and will henceforth be known as Indiaplaza.in in India and Indiaplaza.com in the US. Announcing this at a press conference here, Mr K. Vaitheeswaran, Chief Operating Officer, Indiaplaza, said that the company would aggressively invest and scale up the operations to create a global online shopping brand for Indians and Indian products in India and the US. The company would soon look at tapping the UK, Australia and South Africa markets. "In the next two years, we'll spend about Rs 25 crore on our marketing activities," said Mr Param Parameswaran, Chairman, Indiaplaza. Fabmall.com launched in 1999 is one of the first e-commerce companies set up in the country. By the end of FY'07, Indiaplaza is expecting sales revenues of $12 million-15 million and by 2009, about $60 million-70 million. "We are looking at a valuation of about $100 million by 2010," Mr Vaitheeswaran said. Indiaplaza.in has been posting 30 per cent quarter-on-quarter growth, he said. Indiaplaza.com was set up with funding from The Indigo Monsoon Group (IMG), a private investment firm investing in Indian Internet and mobile domains. IMG has also invested in Sulekha.com and eshakti.com. Indiaplaza's shopping catalogue now has over 3.5 million items across categories including books, music, durables, Bollywood products, apparel, jewellery and appliances. Appendix B вЂ“ Competitors вЂ“ India Plaza Sify sells Indiaplaza.com, to exit non-core areas JULY 05, 2003 TIMES NEWS NETWORK HYDERABAD: Sify has sold its online shopping mall, Indiaplaza.com, to an American investor for an undisclosed amount. The move is in line with the companyвЂ™s restructuring plan, under which, it will exit all non-remunerative, inactive and non-core businesses. According to sources, next in line are Sify Baron Net Devices and Satyam Institute of E-Business. While the former has transacted no business since the last 18 months, the latter has been dormant since inception. SifyвЂ™s board of directors, scheduled to meet on July 15, is expected to ratify the recommendation for the closure of these two companies and the hiving off of Indiaplaza.com. Sify managing director R Ramaraj confirmed the Indiaplaza.com sale. The company has on Friday also made a filing with the US Securities and Exchange Commission (SEC) on the same. However, Mr Ramaraj refused to divulge either the name of Indiaplaza.comвЂ™s buyer or the value of the deal, citing a non-disclosure agreement. вЂњIt is an American company that usually invests in such ventures,вЂќ he said. Incorporated in the US, Indiaplaza.com owns and operates online shopping malls in the US, UK and India. During fiscal вЂ™02, the company recorded sales of $3m and suffered a net loss of $1m. Sify had acquired Indiaplaza.com in July вЂ™00 through a stock-swap, under which, it issued an aggregate of 113,798 ADS to the former equity holders of the portal, according to the filing to the SEC on Friday. However, SifyвЂ™s experience from the acquisition of online properties has not been encouraging. According to the filing, while it had to write off all of the goodwill related to some such acquisitions, including IndiaWorld Communications and Indiaplaza.com, in fiscal вЂ™02, during fiscal вЂ™03, it recorded an impairment charge of $5.2m. On moves to cut its exposure in various verticals, Mr Ramaraj said infrastructure and retail net services, which contribute about 50% of revenues, will be SifyвЂ™s major areas of focus. A similar fate is in store for SifyвЂ™s other subsidiaries like Sify Plasticcommerce, which operated the satyamplastics.com portal. At one point of time Sify had up to 14 subsidiaries, many of which had been floundering. Sify e-learning and SafeScrypt, which has a tie-up with VeriSign, are the only profitable subsidiaries. Appendix C вЂ“ Advertisers Report and Press Room вЂў Advertisers Report вЂ“ Automated and available online, the Advertisers report show current and past months of advertising statistics for paid, upgraded Advertisers. вЂў Statistics available are Listing Views, Banner Ad Views, Website Clicks, Banner Ad Clicks, and Coupon Clicks Press Room published on CopperPages.com Front-End Appendix C - Data Sourcing and Cleaning - Gather sites for Screen Scraping, audit data for accuracy 2 weeks 2 weeks Send info to India Data is Input Manually or Automatically 2-4 weeks - Order copies of Newspapers Download copies of existing data from CPP and join with new data, rank all data from 1-3 in terms of quality based on source Automatically delete duplicates Repeat cycle until no more dupes can be found Optional: Have call center verify data and categorization, perhaps only those with low ranking in terms of source 1 day 0.5 day From 1-4 months 15/hour Fill in missing Zipcodes, Cities, States, and required fields, delete those with no phone or address Re-Run through De-Dupe software using combos of other Parameters (80% Address, 80% Name, 99% Phone, etc.) Optional: Run through DeDupe based on matching Biz Names, review results for Multiple Locations, assign same Directory ID to franchises or branches 1 day Run through De-Dupe software using 1st Parameter (95% Address, 95% Name match) 0.5 day Most time-consuming 0.5 day Manually review duplicates and flag for updating or deletion 250/hr Categorize all data 250/hr according to CPP system, some via Find-Replace, many one-by-one and manually NOTE: 20,000 listings can Publish data to CPP, overwriting existing CPP data 1-2 days take 1-3 with copies that have вЂњUвЂќ and adding new listings. months 500/hr Appendix D вЂ“ Yellow Pages Facts & Statistics вЂў The following are statistics presented by the Yellow Pages Association of North America (www.yppa.com) in a summary of 2004-2005 research and findings: вЂў The Yellow Pages industry is valued at more than $26 billion worldwide and $14 billion in the U.S. There are over 7,000 yellow page directories in North America, used by 9 out of 10 adults, of which 86% follow-up with a phone call or visit. вЂўResearch shows a 14-to-1 return on investment in Yellow Pages advertisement. вЂў Yellow Pages users spend an average of 25 percent more than the average consumer. вЂў According to Knowledge Networks / Statistical Research Inc. (KN/SRI), an independent research firm, 76% of all U.S. adults refer to the Yellow Pages monthly, and 88% of those who use the Yellow Pages ultimately make or are likely to make a purchase. (Compare to 7% ROI in Print and TV, Yellow Pages traffic is worth 12 times more!) вЂў Research also shows the average Yellow Pages user looks at more than five ads when scanning the directory, with a higher advertisement review rate than any other media. вЂў According to an AdAge report in July 2004, online Yellow Pages beat Search Engines locally in use. вЂў New research from The Kelsey Group and ConStat, Inc. indicates that Internet Yellow Pages (IYP) is gaining ground among small and medium-sized business (SMB) advertisers. According to the Local Commerce Monitor, an ongoing study of SMB advertisers cosponsored by the two firms, 24 percent of SMBs are using IYP as part of their advertising and promotion mix - a 60 percent increase over last year. Appendix D вЂ“ Yellow Pages Facts & Statistics вЂ“ contвЂ™d вЂў Gwinnett Business Journal, Dec 2005: Those trusty, dusty yellow pages ought to be green. With a whopping profit margin of about 50 percent, Southwestern Bell Communications' (SBC) print Yellow Pagesв„ў logged a $2 billion profit on $3.8 billion in revenue in 2004, while BellSouth's Real Yellow Pagesв„ў earned $954 million on $2 billion. The print yellow pages industry led all other advertising venues and is expected to do so for at least the next five years. вЂў 68 mln of US Internet users performed an yellow pages search online in July 2006. This represents a 46% increase versus year ago. When analyzing the total share of yellow pages searches, which by their nature have local intent, comScoreвЂ™s data reveals that Yahoo! Sites and Verizon SuperPages garnered the largest share, with 23.9% and 20.1%, respectively. Google Sites ranked third in IYP searches, capturing 12.5%, followed by Yellowpages.com with 12.0%. Appendix D вЂ“ Yellow Pages Facts & Statistics вЂ“ contвЂ™d вЂў According to The Kelsey GroupвЂ™s annual forecast, global local search and online classified advertising revenues will grow from $15.7 billion in 2005 to $31.1 billion in 2010. The local search segment will grow from $3.4 billion in 2005 to $13 billion in 2010, with online classifieds growing from $12.3 billion to $18.1 billion during the same period. вЂў The worldwide Yellow Pages industry (incl. local search) is valued in excess of $100 Billion, according to вЂњGlobal Yellow Pagesв„ў 2005: The Kelsey GroupвЂ™s Outlook & Forecast.вЂќ вЂў According to the 2004 Kelsey Group report, the top ten nations (US, Japan, UK, Italy, Australia, Canada, France, Germany, the Netherlands and Spain) accounted for 85.9% of the global market. The US alone, with revenue of US$15.49 billion, accounted for 50.9% of the global yellow pages advertising market in 2004. Australia was supposedly the fastest growing market (with revenue up by 11.2%), followed by France (up 7.1%) and by New Zealand and Peru (6.8% each). вЂў In 2003 Kelsey suggested that the industry "remains tremendously profitable", generating an estimated US$10 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) on US$25.4 billion revenue. In Canada the Yellow Pages Group boasts profit margins of nearly 58%. Appendix D вЂ“ NRI Facts & Statistics вЂў Approximately 2 million Indians currently live in the United States. The overall growth rate between 1990 and 2000 was 87.4%, the highest of any group in the Asian-American landscape. вЂў 85% of this population is exposed to some form of Indian media or entertainment. вЂў The average household income of Indian-Americans is $65,381, which represents the highest and purchasing power of any minority group in the United States. вЂў 67% of NRIs own their own home, less than 1% receives public assistance. вЂў 70% of NRIs have a BachelorвЂ™s degree or higher, which is higher than any other immigrant population in AmericaвЂ™s history. вЂў More than 95% of NRIs and 78% of Indian Americans can speak a language other than English at home. вЂў The UK consists of the second largest NRI population in the world with about 1.3 million Indians. The United Kingdom issues over 250,000 visas a year to Indian citizens traveling to the UK and as many as 500,000 Indian citizens visit India each year, according to UK High Commissioner Sir Michael Arthur. вЂў Australia is home to over 400,000 NRIs, which represents a wealthy yet highly underserved population. In addition, over 100,000 Indians visit Australia each year as tourists. Appendix E вЂ“ Where We Advertise пѓ� We are advertising heavily: пѓ� TV: AVS (Asian Variety Program) in NY/NJ/PA/CT and national Pakistan-India Cricket Match coverage пѓ� Internet: Sponsored Listings in over 350+ keywords on Yahoo, MSN, Google, & other Search Engines пѓ� Direct Marketing: Over 200,000+ flyers already distributed пѓ� Print: Publication of Press Release and Advertisements in over 30 publications (partial list): вЂўIndia Abroad вЂ“ Nationwide вЂўIndia Tribune вЂ“ Chicago вЂўLittle India вЂ“ Nationwide вЂўIndian Reporter вЂ“ Chicago вЂўIndian Express вЂ“ Nationwide вЂўTiranga вЂ“ New York вЂўDivya Bhaskar вЂ“ Nationwide вЂўGujarat Darpan вЂ“ New York вЂўDesiTalk Chicago and New York/New Jersey вЂўSouth Asian Insider вЂ“ New York вЂўVoice of Asia вЂ“ Texas вЂўIndia Currents - California CPP listed at the top Appendix F вЂ“ Partial List of South Asian Media in the US NEWSPAPER & MAGAZINE OUTLETS India Abroad (Ntnl) Sher-E-Punjab (Ntnl) Silicon India (Ntnl) India Reporter (IL) India Journal India Currents India Today (Ntnl) Silicon India (Ntnl) Hollywood Bollywood (E. Coast) INDUS Business Jrnl (MA) Patrika Ego News India Times (Ntnl) Urdu Times (Ntnl) India in NY India in New England Pakistan Link Biz India Weekly Bangla Patrika (Ntnl) Pakistan Post (Ntnl) The Urban Indian (E. Coast) Lokvani (MA) Kerala Express Voice of America Desi Talk (E. Coast) Thikana (Ntnl) AZAD New York India West (W. Coast) Masala Pakistan Voice Hinduism Today (Ntnl) Divya Bhaskar (Ntnl) New York AWAM India Times (W. Coast) Istyle Pakistan Today Gujurat Samachar (Ntnl) Namaskar (Ntnl) South Asian Insider (E. Coast) URDU Times Silliconeer Bibi Magazine Indian Express (Ntnl) Gujurat Times (Ntnl) India Tribune (IL) Muslims Weekly India Express Anokhi Vibe Sandesh (Ntnl) Ajit Weekly (Ntnl) Spotlight (IL) Weekly News Pakistan India Herald Mehfil Siliconeer (Ntnl) Little India (Ntnl) India Post (IL) Indo American Diya Magazine Samar Magazine Zee TV (Ntnl) MTV India (Ntnl) Music Of India Radio (E. Coast) Aap ka Manoranjan (MA) ImaginAsian (DC) Namaste Bombay TV Asia (Ntnl) Sneha Telugu TV (Ntnl) Eye on Asia (E Coast) Man Ki Pasand (IL) Dhamaka Radio (TX) Vision of Asia American Desi (Ntnl) Anil Ki Awaaz Radio (Ntnl) Namaste America (E. Coast) Bharat Darshan (IL) 4Visions Radio (TX) Pakistan Zindabad B4U (Ntnl) AVS (Ntnl) Vdesi (E. Coast) Chitrahar (IL) India Waves TV Showbiz Sony TV (Ntnl) Radio Punjab (Ntnl) Wah India (MI) 88' Geetmala Radio (TN) ITV IPTV TV & RADIO OUTLETS Appendix G вЂ“ Only 4 B2C Verticals will Survive, B2B is TBD Matrimonials Bollywood Travel B2B Directory Community/News Features вЂў Matching / Profiles Features вЂў Music вЂў Ringtones вЂў Downloadable DVDs вЂў Gaming вЂў Movie Showtimes вЂў Bollywood Events вЂў Bollywd Ticketing вЂў Booking of Talent Actors Models Comedians DJs Features вЂў Airline Tickets Features вЂў Import Export Features вЂў News вЂў Hotels вЂў Outsourcing Technology Legal Advertising Accounting Features вЂў Yellow Pages вЂ“ NRI вЂў YPages вЂ“ Cross Border Medical Care вЂў Classifieds вЂў Career Classifieds вЂў Ecommerce вЂ“ NRI вЂў Ecmmrce вЂ“ Cross Border вЂў All Events вЂ“ NRI вЂў Events вЂ“ Cross Border вЂў Charitable Donations вЂў All Ticketing вЂў Online Courses Hindi Cultural Immersion Players: Raaga.com Smashits.com DesiParty.com NowRunning.com IndiaFM.com TeenPatti.com Sulekha.com Players: MakeMyTrip.com Yatra.com ClearTrip.com Travelocity.com Sulekha.com Players: Players: Sulekha.com CopperPages.com Sulekha.com вЂў Horoscopes вЂў Offline Events Players: вЂў Shaadi.com вЂў BharatMatrimony вЂў IndianDating.com вЂў JeevanSathi.com вЂў Sulekha.com вЂў Car, Other Rentals вЂў Tourist Packages вЂў Call Centers Customer Srvce Data Entry Sales Players: IndiaMart.com OffshoreExperts.com AliBaba.com Elance.com RentaCoder.com вЂў Blogs вЂў Message Boards вЂў Email Samachar.com NewsIndiaTimes Rediff.com Appendix G вЂ“ Cross-Border Outsourcing Directory Yellow Pages Search Engines Listings of retail and websites Content and Website listings Searchable by categorization to nth degree More advanced than Yellow Pages search with many players using different algorithims RFP will be more important Display in customized format Limitations and Strengths different from Yellow Pages (+Ranking, +New content, -not comprehensive in results after 15th page, -not searchable by categorization, not displayed in customized format User domain knowledge and participation (Wikipedia, tagging, forums, blogging) Appendix G вЂ“ Outsourcing Directory: Offshorexperts See next slide for results of вЂњSales & Marketing OutsourcingвЂќ Too much content on home page, we will just do listings and data, not content which can be gotten via Google searches. Content is subjective and a user might need several articles on a subject to be well-informed, trying to offer a few articles is pointless. Appendix G вЂ“ Outsourcing Directory: Offshorexperts 1157 listings, too many results, should have more advanced searched criteria, not sorted by region or even country Very uninformative display, must link to each companyвЂ™s page to get proper detail, should be displayed in customizable chart format and have more specific service lists Appendix G вЂ“ Outsourcing Directory: Offshorexperts This information should have been available on the previous page and is too general, one must drill into their website or call them Appendix G вЂ“ Outsourcing Directory: Offshorexperts Although this is somewhat detailed, there is a lot of information that can be collected uniformly from each vendor and then displayed in a customizable comparison chart back to the user. For example, when bidding for a telemarketing project, specific questions might include: 1) Voice Broadcast or Live? 2) VOIP lines or live phone lines? 3) Recorded calls for audit? 4) Dedicated staff or rotated? 5) Minimum job size required? 6) Estimated completion time 7) Previous jobs completed that were similar 8) Commission based or fixed fee? 9) Size of facility and team 10) Years in business 11) Free trial available? Appendix G вЂ“ Outsourcing Directory: Offshorexperts Appendix G вЂ“ Import/Export Directory: IndiaMart Appendix G вЂ“ Import/Export Directory: IndiaMart Appendix G вЂ“ Import/Export Directory: IndiaMart Appendix G вЂ“ Import/Export Directory: IndiaMart IndiaMART registers 63% growth in nine-month revenues; 73% in 3rd quarter New Delhi, 15th February 2006 - India's leading online B2B marketplace, recorded a 63% growth (from Rs 760.40 lacs to Rs 1242.53 lacs) in cumulative revenues for 9 months ending 31 Dec 2005 compared to the corresponding period last year. The EBDIT grew in the same proportion (63.7%) to gross at Rs 488.70 lacs as against Rs 298.40 lacs last year. The PAT for the same period grew by 65% (from Rs 292.20 lacs to Rs 176.26 lacs) over the last year. The quarterly figures (Oct-Dec 05) showed a 73% growth in revenues (from Rs. 280.65 Lacs to Rs. 486.65 Lacs) with a 75% rise in EBDIT (from Rs 96.81 Lacs to Rs. 169.79 Lacs) and 45% growth in PAT over the same period last year. The increased revenues and profits were largely driven by a 50% increase in the number of new clients building online catalogs at the IndiaMART network, accompanied by a good deal of existing customers upgrading to more comprehensive catalogs. Advertising on the network, that account for 15-20% of the total earnings, also witnessed a growth of 80%. IndiaMART, IndiaвЂ™s largest online B2B marketplace offers online business promotion and matchmaking services to Indian businesses in global markets. The marketplace also offers a host of online advertising opportunities, ecommerce solutions, tenders, trade leads and email solutions. вЂњWe are now working towards translating our success in B2B from вЂ�India-to-worldвЂ™ model to вЂ�world-to-worldвЂ™ model. We are committed to continuously increase and improve our offerings to our online visitors and clientsвЂќ, said Mr. Dinesh Agarwal, Founder & CEO of IndiaMART. He further added that the ISO Certification attained by IndiaMART has certainly enhanced its credibility, and has added pace to the company's growth rate. The IndiaMART network commands a visitor base of 8 million unique business visitors globally that translate into 45 million effective page-views on the portal every month. The network generated a business worth approximately Rs. 5,000 crores for its 9,000+ clients and 3,00,000 member companies in the last financial year. A key milestone achieved during the last year was the launch of ABCpayments, an online payment gateway service facilitating authentic and secure online transactions between buyers and sellers from across the globe. ABC Payments has tied up with business partners like CITIBANK, ICICI, UTI, and Bank of Punjab, HDFC and IDBI, to offer a single platform offering multiple online payment options Appendix G вЂ“ Hispanic Printed Directories A Hispanic Yellow Pages of America now reaches over 1 million Hispanic households in the United States With the acquisition of 13 northwestern Hispanic directories, HYPA now reaches the Hispanic market in 9 states Chicago, IL - January 11, 2007 - Hispanic Yellow Pages of America (HYPA) announced the completion of its acquisition of Travel Media Northwest Inc. (TMNW), and Hispanic Impact Media Inc. (HIM), who, as partners, are the leading Spanish-language yellow page publisher in the Oregon-Washington-Idaho and Utah region. With this acquisition, HYPA is set to reach over one million Hispanic households in the U.S. HYPA's growth mimics that of the Hispanic market. According to the Association of Hispanic Advertising Agencies the Hispanic advertising industry is outpacing all other sectors of advertising growing 4 times faster and is now a more than $4 billion industry. HYPA currently publishes Spanish yellow page directories in Wisconsin, Illinois, Colorado, Arizona and Nevada. With the addition of Oregon, Washington, Idaho and Utah, HYPA will reach more than a million Hispanic households with a total buying power of over $13 billion. HYPA's directories go beyond traditional yellow page offerings by providing in depth community information and other vital information via supplementary Spanish directory products in order to help enrich the lives of Hispanics in the U.S. "Travel Media Northwest and Hispanic Media have a solid customer base, a great reputation in the market, and an outstanding operation that extends our national market presence throughout the Northwest, Midwest and Southwestern United States,вЂќsays Michael Reagan, HYPA's EVP & GM. For more information on HYPA visit www.TusAmarillas.com / www.hypa.info. About Hispania Capital Partners Hispania Capital Partners is a Chicago-based private equity fund focusing on investment opportunities in laterstage companies serving the U.S. Hispanic market in the numerous areas including print, broadcasting, business services, financial sector, information technology, and food manufacturing and distribution. http://www.hispaniapartners.com. **For national sales information contacts Adam Trynoski with National Solutions, Inc. [email protected] or call (850) 7291141 x301. Media Contacts National Solutions Adam Trynoski 850-729-1141 x301 [email protected] Appendix G вЂ“ Hispanic Online Directories вЂў StarMedia Women's Channel Relaunch Part of Broader Strategy вЂє вЂє вЂє ClickZ News By Kate Kaye | August 2, 2006 It may not be competing for the same audience as the likes of iVillage or ClubMom, but with the relaunch of its women's section, Spanish language portal StarMedia wouldn't mind grabbing some of their ad dollars. "The U.S. is the most important country for us in terms of advertising revenue," stressed StarMedia VP of Operations Juan Jose Nunez. The portal publisher has expanded its StarMedia Mujer channel, building out its editorial content in the hopes of giving Spanish speakers in the U.S., Mexico and other Latin American countries more reason to stay on the site -- and more reason for advertisers to reach women there. Advertisers including Tyson, Jeep, Kraft and AstraZeneca's Nexium are running ads in the StarMedia Mujer section. Spanish-language microsites for Nexium and Kraft Foods's ComidaKraft.com, hosted by Starmedia, link from ads in the women's channel. Tyson is running a spot linking to its own Spanish-language site, and Jeep is running a banner linking to an English-language site promoting the 2007 Jeep Compass. According to Nunez, three or four new advertisers are expected to buy media in the new women's channel in the coming weeks. Rich media formats, sponsorships, watermarks and editorially-integrated ads are available on the site. StarMedia has enhanced content areas throughout the women's section, particularly in Fashion and Beauty and Diet and Nutrition. To accommodate the need for more content, Nunez noted that the company has boosted its editorial staff, based in Spain, to four people. StarMedia Mujer features content areas including Family, Sexuality, Relationships, Home, Horoscopes and Forums. The relaunched channel also offers a new sub-section called "Tu Espacio," or "Your Space," which includes in-depth content regarding family, work and travel and leisure. StarMedia also provides services such as chat, e-mail, games, e-cards and classifieds across the portal. The firm also launched its online digital Latin music service VOY Music about four months ago. StarMedia, which is wholly-owned by France Telecom Group's online division, Wanadoo, derives the largest portion of its ad revenue from auto and entertainment advertisers, according to Nunez. He expects to see more dollars from sports and technology advertisers in the near future, he said. Site visitors from Mexico and the U.S. comprise the largest portion of the portal's user base, Nunez told ClickZ News. Mexico accounts for around 20 percent of its audience, and the U.S. makes up around 15 percent. "The market is much bigger than the rest of the countries," he added. "That's the reason why we're focused on those markets." Other visitors reside in Peru, Argentina, Columbia and Chile. StarMedia often targets ads to users living in the U.S. or Mexico, or specific zip and area codes. StarMedia ranks fourth in Web traffic among major Spanish-language sites, according to Hitwise. The Web measurement firm found Univision garnered .04 percent of the weekly market share of total Web visits for the week ending July 29. Yahoo Telemundo came in second with .009 percent, Terra Networks third with .004 percent, StarMedia fourth with .001 percent, and AOL Latino fifth with .00008 percent. The portal must balance its need to go head-to-head with other Spanish-language sites with its broader goal of growing the Hispanic market in the U.S, explained Nunez. Indeed, he sits on the Interactive Advertising Bureau's Hispanic Committee, along with several representatives of StarMedia's competitors. "We're going for the same audience," admitted Nunez. "We have to work together to increase the U.S. Hispanic market." вЂў StarMedia, VOY Music Launch Latin Digital Music Service Miami - StarMedia, a unit of broadband provider Wanadoo that serves 20 million Spanish-speaking subscribers, announced on Thursday that it has partnered with Latin digital music service provider VOY Music. The companies jointly launched StarMedia Radios, a Latin digital music service that will be powered by VOY and offer 26 online Spanish-language radio stations. Appendix G вЂ“ Hispanic Online Directories Univision.com is a comprehensive content- and service-rich Spanish-language Internet service catering to the 33 million Hispanic Americans who represent the country's fastest growing online community. Univision.com includes three distinct, but closely integrated components: an Internet portal featuring four branded information channels, including original and exclusive news, entertainment, sports, and life resources; a branded shopping channel offering a full range of tailored e-commerce merchandising; and facilitated access to this material through an Internet Service Provider (ISP), which can also be obtained through low-cost, financed pre-packaged PCs. Leveraging the power of the Univision Television Network, America's leading Spanish-language broadcaster, Univision.com provides Hispanics with an unparalleled online forum that entertains, educates and empowers the U.S. Hispanic community. Form 10-Q for LOOPNET, INC. 31-Oct-2006 Quarterly Report We are a leading online marketplace for commercial real estate in the United States, based on the number of monthly unique visitors to our marketplace, which averaged approximately 500,000 unique visitors per month during 2005, and approximately 880,000 per month during the third quarter of 2006, as reported by comScore Media Metrix. comScore Media Metrix defines a unique visitor as an individual who visited any content of a website, a category, a channel, or an application. Our online marketplace, available at www.LoopNet.com, enables commercial real estate agents, working on behalf of property owners and landlords, to list properties for sale or for lease and submit detailed information on property listings including qualitative descriptions, financial and tenant information, photographs and key property characteristics in order to find a buyer or tenant. We offer two types of memberships on the LoopNet online marketplace. Basic membership is available free-of-charge, and enables members to experience some of the benefits of the LoopNet offering, with limited functionality. LoopNet premium membership is available for a monthly subscription fee and provides enhanced marketing exposure for property listings and full access to LoopNet property listings, as well as numerous other features. The minimum term of a premium membership subscription is one month. We believe that the key metrics that are material to an analysis of our business are the number of our registered members, the number of our premium members, the rate of conversion of our basic members to premium members, and the cancellation rate of our premium members. We also believe that the number of listings on our marketplace is a key metric, as it affects the attractiveness of our website to current and potential customers. Our total membership has grown from approximately 449,000 members as of December 31, 2003 to over 1.1 million members as of December 31, 2005 and approximately 1.6 million members as of September 30, 2006. Our base of premium members has grown from over 21,000 premium members as of December 31, 2003 to over 57,000 premium members as of December 31, 2005 and over 76,000 premium members as of September 30, 2006. Historically, our average monthly rate of conversion of basic members to premium members has been approximately five percent, and our average monthly cancellation rate for premium members has ranged between three and five percent. Premium membership fees have driven the majority of our growth in revenues since 2001 and were the source of approximately 80% of our revenues in 2005 and in the nine months ended September 30, 2006. The number of listings on our marketplace has grown from approximately 224,000 as of December 31, 2003 to approximately 335,000 as of December 31, 2005 and approximately 430,000 as of September 30, 2006. We derive the substantial majority of our revenues from customers that pay monthly fees for a suite of services to market and search for commercial real estate and operating businesses. Our fee for our LoopNet premium membership averaged $45.40 per month during the third quarter of 2006.