FHP - Private Equity Consultants

Venture Capital Panel Market Barometer with its Finger on the Pulse" 2006 FHP - Private Equity Consultants Munich, February 2006 1 Venture Capital Panel of FHP Fleischhauer, Hoyer & Partner Panel results are reviewed by print media each quarter and sent out to a group of 80 fund of funds and 200 institutional investors in Europe VC Panel = sector barometer (each quarter) with its finger on th e pulse since 1999, focus on early stage Participants: 41 leading venture capital firms in Germany Content: Invested capital, number of investments, share of government support programs (Bayern Kapital, HighTech Gründerfonds, IBB Beteiligungsgesellschaft, KfW, NRW.BANK Venture Fonds), technology, federal states/abroad, exit activities Panel information is supplemented with special questions on the business climate in the sector and on current topics that affect the sector Media partners: First publication in VDI nachrichten, Handelsblatt, and Fondszeitung, and subsequently in a number of additional daily newspapers (FAZ, FTD, SZ und Börsenzeitung) Results are sent out to over 80 European fund of funds and 200 institutional European investors with substantial private equity allocations 2

Venture Captial Panel Participants 41 leading early-stage financiers grouped by fund volume > 250 Mio. EUR 3i Deutschland, Frankfurt Apax Partners, München Atlas Venture, München DVC Deutsche Venture Capital, München Earlybird, Hamburg/München High-Tech Gründerfonds (HTGF), Bonn KfW Bankengruppe (ERP-Startfonds), Bonn Siemens Venture Capital, München TVM Capital, München Wellington Partners, München 100-250 Mio. EUR AdAstra Venture, München Atila Ventures / ETV, München BayTech Venture Capital, München bmp, Berlin First Ventury, Heidelberg Global Life Science Ventures, München Heidelberg Innovation Heidelberg L-EA / SEED, Karlsruhe PolyTechnos, München Target Partners, München Ventizz Capital Partners, Düsseldorf 50-100 Mio. EUR BayernKapital, Landshut Brockhaus Private Equity, Frankfurt DEWB, Jena Neuhaus Partners, Hamburg Holtzbrinck networxs, München IBB Beteiligungsgesellschaft, Berlin S-UBG Gruppe, Aachen TechnoStart, Ludwigsburg Triangle Venture Capital, St.Leon-Rot Viewpoint Capital Partners, Frankfurt 10-50 Mio. EUR Accera Venture Partners, Mannheim AURELIA Private Equity, Frankfurt Capital Stage, Hamburg enjoyventure Management, Düsseldorf Hasso Plattner Ventures Management, Berlin Leonardo Venture GmbH MIG Verwaltungs AG, München NRW.BANK.Venture Fonds PEPPERMINT. Financial Partners, Berlin TechnoMedia, Köln 3 VC Panel data and facts in 2006 Increasing number of investments and exits Investments Number of investments increased from 274 in 2005 to 334 in 2006 First and follow-on investments were first time equal for a long time (166 first investments, 168 follow-on investments) 37 VC-companies closed altogether 166 first-investments in 2006 128 companies were financed with venture capital for the first time (A-rounds) The invested capital dropped down form 409 Mio. in 2005 to 396 Mio in 2006 25% of panel participants represent 75% of total investment volume but four firms did not invest at all The most active investors were TVM Capital (7 first investments/18 follow-on investments) Siemens Venture Capital (3/15), Wellington Partners (9/7), Target Partners (1/10) as well as holtzbrinck networxs (5/5). Furthermore Wellingtion Partners has closed the most first investments Most capital was invested from TVM Capital (72 Mio. ), First Ventury (55 Mio. ) and Ventizz Capital Partners (46 Mio. ) Sektors As in previous years, biotechnology was the most popular sector, both in terms of number of investments and amount of capital invested. However the most first investments were closed in the software sector. The cleantechsector is for the first time by invested capital on position 6 Regions 21% of all investments were made abroad. In Germany, Bavaria (24%), Nordrhein-Westfalen (14%) and Berlin (10%) were the states with the most VC financing Exits The number of successful exits (trade sales, IPO, etc.) increased from 86 in 2005 to 90 in 2005. In the same period, the number of write-offs dropped from 25 to 11. 4

VC Panel development (number of investments) After four years the number of investments is increasing for the first time No. of Investments 140 120 100 140 134 124 119 111 94 99 105 2001: 517 Investments 100 91 2002: 409 Investments 2003 : 339 Investments 97 2004: 326 Investments 2005: 274 Investments 2006: 334 Investments 111 80 60 40 20 0 QI/01 QII/01 Source: VC-Panel QIII/01 QIV/01 QI/02 QII/02 QIII/02 QIV/02 QI/03 QII/03 QIII/03 65 83 79 78 72 68 60 QIV/03 QI/04 QII/04 QIII/04 QIV/04 QI/05 QII/05 QIII/05 QIV/05 QI/06 QII/06 QIII/06 QIV/06 68 78 69 77 77 5 VC Panel development (total capital resources of companies) Investment volume has been stabilized on low level Investment - volumen (Mio. ) 708 27 630 28 Total invested capital per quarter Note: * includes KfW-ERP Startfonds, High-Tech Gründerfonds, NRW.Bank, Bayern Kapital und IBB Beteiligungsgesellschaft 500 466 451 16 438 17 398 1 401 373 376 360 360 2 0,75 2 311 2 317 3 315 311 301 280 281 306 264 250 2,6 0,7 250 305 13 2 1 224 21 17 223 268 288 237 4,5 8,5 245 163 263 174 201 210 109 131 194 168 1,5 3 192 199 152 179 1,5 1,4 147 159 17 243 78 227183185 105 117 110 110 113 107 95 106 94 127 145 113 112 56 84 75 88 133 103 111 137 58 Public Investors* Other Lead-/ Co-Investoren VC-Panel Participants QI/01 QII/01 QIII/01 QIV/01 QI/02 QII/02 QIII/02 QIV/02 QI/03 QII/03 QIII/03 QIV/03 QI/04 QII/04 QIII/04 QIV/04 QI/05 QII/05 QIII/05 QIV/05 QI/06 QII/06 QIII/06 QIV/06 Source: VC Panel FHP Private Equity Consultants; Anm.: Angaben teilweise gerundet 6

VC Panel: Development of capital/investments To the yearend increase of invested capital by panel-participants 10 Capital invested per quarter per Panel participant (without public investors) Business Climat Index 6,3 6,1 5 3,9 4,9 5,1 3,6 3,4 2,6 2,6 2,7 2,5 3,2 2,32,4 2,2 2,6 No. of investments 2,5 2,2 2,3 1,5 2,3 2 realized 2,0 1,3 per Panel participant (without public investors) 0 QI/01 QII/01 QIII/01 QIV/01 QI/02 Source: VC Panel FHP Private Equity Consultants QII/02 QIII/02 QIV/02 QI/03 QII/03 QIII/03 QIV/03 3,3 2 QI/04 3,9 3,7 3,2 2,9 2,8 2,8 2,1 2,5 2,7 2,4 1,8 1,8 1,5 1,3 2 1,8 1,6 1,2 1,4 1,9 1,3 1,2 QII/04 QIII/04 QIV/04 QI/05 QII/05 QIII/05 QIV/05 QI/06 QII/06 QIII/06 QIV/06 7 Development of first investments Number of first investments recovered in 2006 Number of First Investments 70 60 50 40 1,7 1,35 1,06 0,92 No. of first investments per Panel participant (without public investors) 0,61 0,48 0,48 0,37 0,37 0,45 0,5 0,4 0,7 0,6 0,6 0,4 0,4 0,3 0,4 0,4 0,7 FIRST INVESTMENT INDICATOR 0,5 0,4 0,6 30 56 50 13 33 22 23 Public Investors 20 34 38 10 25 20 20 15 16 19 21 18 29 25 24 24 16 17 17 13 15 14 14 22 VC Panel Participants 0 QI/01 QIII/01 QI/02 QIII/02 QI/03 QIII/03 QI/04 QIII/04 QI/05 QIII/05 QI/06 QIII/06 Source: VC Panel FHP Private Equity Consultants 8

VC Panel: Number of investments from 2000 to 2005 Balance between first- and follow-on-investments First-Investments Follow-on-Investments 64% 80% 76% 71% 73% 50 % 50 % 36% 20% 24% 29% 27% 2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006 Quelle: VC-Panel (Angaben teilweise gerundet) 9 How many investments were made in 2006? Increasing number of single-investments A-rounds areup to 40 % 334 Investments Number Investments +22% 334 Co-Investments (68% in 2005) 39% Single- Investments (32% in 2005) 274 61% C- rounds 21% >D-rounds 16% B-rounds 23% 40% A-rounds Year 2005 Year 2006 Quelle: VC-Panel 10

How many investments did individual VC firms make? exclusive for panel-partcipants Quelle: VC-Panel Anmerkung: (x/y) = Anzahl Erst-/Folgeinvestments 11 How many first investments did individual VC firms make? exclusive for panel-partcipants Source: VC-Panel 12

How much capital did individual VC firms invest? exclusive for panel-partcipants Quelle: VC-Panel (Angaben teilweise gerundet) l 13 Who are the most active investors in individual technological areas in 2006? exclusive for panel-partcipants Quelle: VC Panel FHP Private Equity Consultants 14

Where did the capital come from? An important share of the invested capital came from external, mostly foreign investors 1085 Mio. Euro year 2006 Ø-Investment 74 Public Investors 0,5 Mio. Euro per KFW-investment (Co-financing) 396 VC-Panel-Participants 2 Mio. Euro per investment Other Lead-/ Co-Investors 5 Mio. Euro per investment (Co-Investments) 615 Quelle: VC-Panel (Angaben teilweise gerundet) 15 How has the investment volume developed? Investments of public investors raised significantly in 2006 Total transaction volume VC-panel participants Public Investors Mio. Euro 1500 1200 1164-7% 1085 900-11% 600 300 445 396 +722% 74 9 0 2005 2006 2005 2006 2005 2006 Quelle: VC-Panel (Angaben teilweise gerundet) 16

In which technologies were investments made? Most investments were made in software companies 334 Investments Media/Entertainment Electro technology/ electronics Industry-Automation/Logistics Internet-Services Telecommunication technology Medical technologies 11,4% 6,6% 6% 4,2% 3,9% 3,9% 3,6% 11,7% Hardware New materials 2,4% Energy 2,4% Laser/Photonic 1,8% IT-Services 1,8% Environment technology 1,2% Mechanical engineering 1,2% Chemistry 0,6% Others (Food) 0,3 % 22,2% 25,1% Software Biotechnlogy Quelle: VC-Panel (Angaben teilweise gerundet) 17 How much capital was invested in individual technological areas? By far the most capital was invested in biotech software on 2nd place Top ten technological areas in 2006 (in Mio. Euro on basis total invested capital) 1. Biotechnology 113,1 2. Software 102,0 3. Medical technology 57,6 4. Hardware 38,8 5. Electrotechnology/electronics 25,3 6. Cleantech* 25,1 7. Others (Food) 20,0 8. Media/Entertainment 18,0 9. Industry automation/logistics 10. Telecommunication-technology 17,9 17,9 Quelle: VC-Panel (Angaben teilweise gerundet) *Cleantech: Energy-, environmental technology, new materials 18

Where were investments made? Nearly one quarter of all investments were made in Bavaria NRW on second place Percentage distribution based on number of investments (Year 2006) 334 Investments Abroad : 21% 9% 11% 14% 7,6% NRW 10% Berlin Additional states: Hessen 4% Sachsen 4% Hamburg 3% Niedersachsen 3% Rheinland Pfalz 2% Brandenburg 2% Saarland 2% Others 3% Germany : 79% 1% 7% 24% Bavaria Europe USA RoW BW Quelle: VC-Panel (Angaben teilweise gerundet) 19 How many exits were realized by Panel participants? The stock -exchange has been the most important exit channel in 2006 334 101 Exits Write -Offs Buy Back 101 Exits Trade Sale 25% 11% 4% 14% IPOs 90 Number of investments Spinn-Offs 11 Write-Offs Others 3% 42% after IPO Quelle: VC-Panel 20

VC-Panel: Developments of exits Write-offs drop down in 2006 to the lowest level for the last years Total number of exits: 100 100 142 125 112 101 100% 90% 80% 70% 60% 50% 42 50 72 80 87 90 40% 30% 20% 10% 0% 58 50 70 45 25 11 2001 2002 2003 2004 2005 2006 Spin-Offs Write-Offs Quelle: VC-Panel 21 VC Panel: Development of write-offs Gap between write-offs and spin-offs is going to be bigger Exit - Indikator 0,8 Spin-offs per panel participant 0,6 0,6 0,6 0,5 0,5 0,6 0,4 0,5 0,3 0,4 0,4 0,3 0,2 Write -offs per panel participant 0,2 0,0 2001 2002 2003 2004 2005 2006 0,1 Quelle: VC-Panel 22

Our range of services FHP:Experience and expertise in the private equity business Customer Investor Focus Institutional Investors Banks and savings banks Identification, selection, and due diligence of funds Conception and implementation of VC/PE-programs also CVCprograms Market and technology testimonials Ongoing support and structuringof equity financing Conception of fund-constructions Private Equity Advisory Development and implementation of strategic asset allocation Analysis and ongoing support of private equity - portfolios Ratingvon Private FONDS-RANGE: Equity Fonds Ratingof private equity fonds Funds and Fund of Funds Capital seeking companies Market and technology testimonials Portfolio analyses Conception of PE-Fonds (Placement-activities) Strategic and functional consulting of technology companies Ongoing support of equity financing with venture capital / private equity 23 Contact FHP Private Equity Consultants Nördliche Auffahrtsallee 25 D - 80 638 Munich Tel.: +49 (0) 89 15 92 79 0 Fax: +49 (0) 89 15 92 79 79 office@ fhpe.de www.fhpe.de 24