Emily Mendell, NVCA, 610-565-3904, emendell@nvca.

org
Matthew Toole, Thomson Financial, 646-822-7560, matthew.toole@thomson.com
Sandy Anglin, Thomson Financial, 646-822-7334, sandy.anglin@thomson.com

Venture-Backed IPO Exits Strengthen in 2007

Venture-Backed Acquisition Quarterly Volume Hits 10 Year Low While Average Disclosed Value
Hits 7 Year High

New York, NY- January 2, 2008 – Thirty-one venture-backed initial public offerings totaling $3.0 billion
in proceeds were issued in the fourth quarter of 2007, according to the Exit Poll report by Thomson
Financial and the National Venture Capital Association (NVCA). This volume represents the highest
quarterly number of IPO’s since the third quarter of 2000. For the year, 86 venture-backed companies went
public for $10.3 billion, a 51 percent increase in volume over 2006 when 57 companies went public for
$5.1 billion. In contrast, the venture-backed M&A market had only 46 deals in the fourth quarter, 23 of
which had a combined disclosed value totaling $6.7 billion, the lowest number of total M&A exits since 1Q
1998 when there were 44 M&A exits. For the year, there were 305 venture-backed M&A transactions with
a total disclosed value of $25.4 billion, the highest disclosed values since 2000.

“This past year was marked by improving quality of both venture-backed IPO’s and M&A transactions,”
said Mark Heesen, president of the NVCA. “In the coming year, we would like to uphold that quality
while increasing quantity on both exit fronts. An ideal year would see more than one hundred venture-
backed IPO’s and 350 or more acquisitions. But we don’t want to sacrifice quality to hit that threshold.”

Venture-Backed Liquidity Events by Year/Quarter, 2001-2007ytd

*Total
M&A Disclosed *Average Total Average
Total Deals with M&A M&A Offer IPO Offer
M&A Disclosed Value Deal Size **Number Amount Amount
Quarter/Year Deals Values ($M) ($M) of IPO's ($M) ($M)
2001 353 165 16,798.9 101.8 41 3,489.9 85.1
2002 318 152 7,916.4 52.1 22 2,109.1 95.9
2003 291 123 7,726.1 62.8 29 2,022.7 69.8
2004-1 80 45 3,921.0 87.1 13 2,721.1 209.3
2004-2 89 48 4,514.6 94.1 29 2,077.8 71.7
2004-3 86 47 4,142.8 88.2 24 3,225.6 134.4
2004-4 84 46 2,862.2 62.2 27 2,990.4 110.8
2004 339 186 15,440.6 83.0 93 11,014.9 118.4
2005-1 82 46 4,364.9 94.9 10 720.7 72.1
2005-2 80 36 4,791.0 133.1 10 714.1 71.4
2005-3 98 47 4,374.8 93.1 19 1,458.1 76.7
2005-4 87 39 2,563.7 65.7 17 1,568.1 92.2
2005 347 168 16,094.4 95.8 56 4,461.0 79.7
2006-1 105 49 5,446.4 111.2 10 540.8 54.1
2006-2 104 39 3,935.6 100.9 19 2,011.0 105.8
2006-3 93 42 3,894.8 92.7 8 934.2 116.8
2006-4 61 25 3,866.8 154.7 20 1,631.1 81.6
2006 363 155 17,143.5 110.6 57 5,117.1 89.8
 2007-1 82 29 4,540.3 156.6 18 2,190.6 121.7
2007-2 82 34 3,876.8 114.0 25 4,146.8 165.9
2007-3 95 50 10,300.5 206.0 12 945.2 78.8
2007-4 46 23 6,675.6 290.2 31 3,043.8 98.2
2007 305 136 25,393.3 186.7 86 10,326.3 120.1
Thomson Financial & National Venture Capital Association
*Only accounts for deals with disclosed values
**Includes all companies with at least one U.S. VC investor that trade on U.S. exchanges, regardless of domicile.

IPO Activity Overview

The Information Technology (IT) sector saw the majority of venture-backed companies come to the public
market with 17 IPO’s raising $1.5 billion during the fourth quarter. This activity represents an increase
from the previous quarter when there were nine issues in the IT sector accounting for $684.5 million in
proceeds. The largest IPO in the IT sector in the fourth quarter was Longtop Financial Technologies, Ltd.’s
$182.6 million issue, managed by Goldman Sachs and Deutsche Bank. Longtop Financial Technologies,
Ltd. is a software and solutions developer catering to the IT needs of rapidly developing financial
institutions in China. Venture investment in the company totaled $48.2 million from Tiger Global and an
undisclosed firm across two rounds.

The Life Sciences industry accounted for an additional ten venture-backed IPO’s during the fourth quarter
of 2007. The largest issue in this sector was the $98.0 million issue by Nanosphere, Inc., an Illinois based
company whose Verigene System automates the analysis and ultra-sensitive detection of nucleic acids and
proteins. Venture investors in the company include Allen & Company, Bain Capital, Brookside
International Incorporated, Lurie Investment Fund, NGEN Partners LLC, and undisclosed individuals and
investors. In total, these firms invested $80.1 million of venture capital in Nanosphere.

In full-year 2007, the IT sector accounted for the most venture-backed IPO’s, totaling 47 issues and $6.0
billion in volume. Life Sciences followed with 32 issues and $2.6 billion in proceeds.

Venture-Backed IPO Industry Breakdown

Q4 2007
*Number
of Total
Venture- Venture-
Backed Backed
IPO’s in Offering
Industry the U.S. Size ($M)
Internet Specific 4 291.2
Communications and Media 2 134.7
Computer Software and
Services 7 836.9
Semiconductors/Other Elect. 4 246.8
Information
Technology TOTAL 17 1,509.7
Medical/Health 6 342.9
Biotechnology 4 320.5
Life Sciences TOTAL 10 663.4
Consumer Related 2 487.8
Other Products 2 383.0
Non High-
Technology TOTAL 4 870.8
TOTAL 31 3043.8

*Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile
The Boston metropolitan region, followed by San Jose and Chicago, had the most venture-backed
companies with IPO exits in the fourth quarter. In Boston, there was one IPO apiece in Communications
and Media, Computer Software and Services, Semiconductors and Other Electric, and Biotechnology
industries. In San Jose, there was one issue each in Computer Software and Services, Biotechnology, and
Medical/Health sectors. Chicago, had offerings in Communications and Media, Semiconductors and Other
Electric, and Biotechnology.

Foreign IPO’s on US exchanges accounted for $933.0 million in proceeds in the fourth quarter, the highest
proceeds since 1Q 2004 when two issues, led by the largest venture capital issue ever, Semiconductor
Manufacturing International Corporation, raised $1.9 billion. The largest issue by proceeds of the quarter
was by Chinese company China Nepstar Chain Drugstore, Ltd., a retail drugstore chain in China, which
raised $334.1 million on the NYSE. GS Capital Partners, L.P. was the sole investor in this company.

For the full-year 2007, San Jose led the metro regions with 19 issues and $2.0 billion in funds raised by
venture-backed companies which went public in 2007. The region accounted for 21.5% of the annual value
of funds raised by companies in the US marketplace. Boston followed with 17 issues and $1.3 billion in
volume.

4Q 2007 Venture-Backed IPO Metro Region

Breakdown
*Number of
Venture-Backed
Metro Region IPO's in the U.S.
Boston 4
San Jose 4
Chicago 3
Twin Cities 3
San Fran/Berkeley 2
Washington Metroplex 2
San Diego Metro 2
Philadelphia 1
Great Lakes 1
Los Angeles 1
Other US 3
Non US 5
TOTAL 31

*Includes all companies with at least one U.S.

VC investor that trade on U.S. exchanges,
regardless of domicile

As of December 31, 2007, 58 percent of the venture-backed companies that went public during 2007 were
trading at or above their offering price.

Sixty venture-backed companies have filed for an initial public offering with the SEC since 2006 and are
currently “in registration.” This marks a decrease from the previous quarter when 72 venture-backed
companies were in registration.

In addition to the U.S. market activity, ten companies that received US venture financing went public on
foreign exchanges in the fourth quarter. Exchanges for these listings includes Bombay, Euronext Brussels,
Hong Kong, London AIM, Madrid, National, Singapore, and Taiwan.

The largest IPO of the year was MetroPCS Communication Inc’s $1.2 billion issue in April, the third
largest issue of all time.
Merger and Acquisition Overview

In the fourth quarter of 2007, only 46 venture-backed M&A deals were completed, the lowest level since
1Q 1998, when 44 disclosed deals accounted for $3.1 billion in value. While deal volume was at a nine
year low, average disclosed quarterly dollar volume reached $290.2 million, the highest level seen since the
year 2000.

The Life Sciences sector dominated the venture-backed M&A landscape, with 9 deals and a disclosed total
dollar value of approximately $2.5 billion. The Non-Technology industry saw the next highest disclosed
dollar volume at $2.2 billion. The Information Technology sector saw the most deals with the least
disclosed value, reaching $2.0 billion from 32 total deals. Within this industry the Computer Software and
Services sector reached $1.2 billion in disclosed deal value – 59 percent of the overall value within
technology businesses. For full-year 2007, Information Technology targets dominated the M&A scene
accounting for $13.6 billion in deals.

Venture-Backed M&A Industry Breakdown

Q4 2007

Number of Total
Venture- Disclosed
Number of Backed Venture-
Venture- M&A Backed
Backed deals with Deal
M&A a disclosed Value
Industry deals value ($M)
Communications and Media 3 1 140.0
Internet Specific 12 4 668.5
Computer Software and
Services 13 7 1151.0
Semiconductors/Other Elect. 3 - -
Computer Hardware 1 - -
Information
Technology TOTAL 32 12 1,959.5
Medical/Health 9 7 2491.4
Life
Sciences TOTAL 9 7 2491.4
Other Products 3 3 1549.8
Industrial/Energy 2 1 675.0
Other TOTAL 5 4 2,224.8
TOTAL 46 23 6,675.6
Source: Thomson Financial & National Venture Capital Association

The largest disclosed deal of the quarter was the $1.7 billion acquisition of Reliant Pharmaceuticals,
marketer of branded, patent protected, ethical pharmaceutical products, by medical giant GlaxoSmithKline
PLC in December. The second largest deal was the $925 million acquisition of women’s television
network Oxygen Media LLC by NBC Universal in October.

December’s Reliant Pharmaceuticals deal represents the largest deal of the year followed by the $1.4
billion acquisition of Worldspan Technologies by Travelport, Inc., which occurred in the 3rd quarter.

Deals bringing in the top returns, those with disclosed values greater than four times the venture
investment, accounted for 45 percent of the total compared to 60 percent last quarter. Those deals returning
less than the amount invested accounted for 20 percent of the quarter’s total, up from 13 percent of the total
last quarter. For the full year 2007, 43 percent of the M&A transactions returned more than four times the
venture investment, compared to 36 percent in 2006. Twenty-five percent of the deals in 2007 had
transaction values less than the venture investment compared to 2006 when 28 percent of the deals were
valued at less than the venture investment.
 Analysis of Transaction Values versus Amount Invested
Relationship between transaction value and Q307 Q407 2006 2007
investment M&A** M&A** M&A** M&A**
Deals where transaction value is less than total
venture investment 6 4 42 32
Deals where transaction value is 1-4x total
venture investment 13 7 54 42
Deals where transaction value is 4x-10x total
venture investment 16 2 30 28
Deals where transaction value is greater than
10x venture investment 12 7 25 27
Total Disclosed Deals 47 20 151 129
Source: Thomson Financial & National Venture Capital Association
** Disclosed deals that do not have a disclosed total investment amount are not
included.

About Thomson Financial

Thomson Financial, with 2006 revenues of US$2 billion, is a provider of information and technology
solutions to the worldwide financial community. Through the widest range of products and services in the
industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more
productive and achieve superior results. Thomson Financial is part of The Thomson Corporation
(www.thomson.com), a global leader in providing essential electronic workflow solutions to business and
professional customers. With operational headquarters in Stamford, Conn., Thomson provides value-added
information, software tools and applications to professionals in the fields of law, tax, accounting, financial
services, scientific research and healthcare. The Corporation's common shares are listed on the New York
and Toronto stock exchanges (NYSE: TOC; TSX: TOC).

The National Venture Capital Association (NVCA) represents approximately 480 venture capital and
private equity firms. NVCA's mission is to foster greater understanding of the importance of venture capital
to the U.S. economy, and support entrepreneurial activity and innovation. According to a 2007 Global
Insight study, venture-backed companies accounted for 10.4 million jobs and $2.3 trillion in revenue in the
United States in 2006. The NVCA represents the public policy interests of the venture capital community,
strives to maintain high professional standards, provides reliable industry data, sponsors professional
development, and facilitates interaction among its members. For more information about the NVCA, please
visit www.nvca.org.