Shea & Company Annual Software Market Review - 2007

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Trading Multiples by Segment ($ millions) Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EPS [a] P/E Multiple Company (12/31/07) Value Value CY07E CY08E Growth % CY07E CY08E CY07E CY08E Growth % CY07E CY08E Global Diversified Microsoft $ 34.53 $ 326,390 $ 295,109 $ 57,468 $ 62,445 8.7% 5.1 x 4.7 x $ 1.79 $ 1.91 6.7% 19.3 x 18.1 x Cisco Systems 33.01 208,185 190,219 37,657 43,233 14.8% 5.1 4.4 1.48 1.69 14.2% 22.3 19.5 IBM 108.86 152,933 174,431 97,718 102,370 4.8% 1.8 1.7 6.97 7.98 14.5% 15.6 13.6 Hewlett Packard 51.84 138,819 135,557 106,805 113,461 6.2% 1.3 1.2 3.08 3.48 13.0% 16.8 14.9 Oracle 20.51 108,001 105,807 19,966 22,577 13.1% 5.3 4.7 1.11 1.30 17.1% 18.5 15.8 SAP AG 51.47 64,698 60,832 14,540 16,431 13.0% 4.2 3.7 2.25 2.60 15.6% 22.9 19.8 EMC 21.37 50,890 43,537 13,071 14,768 13.0% 3.3 2.9 0.69 0.84 21.7% 31.0 25.4 Mean $ 49,604 $ 53,612 10.5% 3.7 x 3.3 x $ 2.48 $ 2.83 14.7% 20.9 x 18.2 x Median 37,657 43,233 13.0% 4.2 3.7 1.79 1.91 14.5% 19.3 18.1 Business Intelligence Business Objects $ 61.37 $ 6,050 $ 5,759 $ 1,500 $ 1,691 12.7% 3.8 x 3.4 x $ 1.95 $ 2.35 20.5% 31.5 x 26.1 x Cognos 57.28 4,916 4,769 1,057 1,240 17.2% 4.5 3.8 1.96 2.40 22.4% 29.2 23.9 Omniture 29.49 1,932 1,769 143 219 53.5% 12.4 8.1 0.20 0.41 105.0% nm 71.9 Informatica 16.87 1,575 1,357 387 445 15.1% 3.5 3.1 0.72 0.74 2.8% 23.4 22.8 MicroStrategy 102.31 1,295 1,219 358 399 11.7% 3.4 3.1 4.84 5.88 21.5% 21.1 17.4 Fair Isaac 25.70 1,293 1,619 813 840 3.3% 2.0 1.9 1.66 1.89 13.9% 15.5 13.6 SPSS 43.13 867 720 287 312 8.9% 2.5 2.3 1.54 1.86 20.8% 28.0 23.2 Visual Sciences 15.38 331 321 82 91 12.0% 3.9 3.5 0.59 0.75 27.1% 26.1 20.5 Keynote Systems 14.48 268 160 70 80 15.0% 2.3 2.0 (0.28) 0.13 nm nm nm Mean $ 522 $ 591 16.6% 4.3 x 3.5 x $ 1.46 $ 1.82 29.2% 25.0 x 27.4 x Median 358 399 12.7% 3.5 3.1 1.54 1.86 21.1% 26.1 23.0 Notes: Enterprise value equals equity value, plus debt, less cash P/E multiples in excess of 100x are considered to be not meaningful [a] Wall Street consensus estimates Source: Company releases, Wall Street research, Shea & Company proprietary & confidential 21
Trading Multiples by Segment continued ($ millions) Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EPS [a] P/E Multiple Company (12/31/07) Value Value CY07E CY08E Growth % CY07E CY08E CY07E CY08E Growth % CY07E CY08E Content Management Open Text $ 31.45 $ 1,651 $ 1,849 $ 669 $ 708 5.9% 2.8 x 2.6 x $ 1.77 $ 2.00 13.0% 17.8 x 15.7 x Interwoven 14.44 674 476 222 249 11.9% 2.1 1.9 0.57 0.69 21.1% 25.3 20.9 Vignette 17.77 476 282 187 196 4.9% 1.5 1.4 0.91 0.93 2.2% 19.5 19.1 Mean $ 359 $ 384 7.6% 2.1 x 2.0 x $ 1.08 $ 1.21 12.1% 20.9 x 18.6 x Median 222 249 5.9% 2.1 1.9 0.91 0.93 13.0% 19.5 19.1 ERP & Vertical Applications Salesforce.com $ 54.43 $ 6,678 $ 6,114 $ 741 $ 1,030 39.0% 8.3 x 5.9 x $ 0.13 $ 0.32 146.2% nm x nm x Sage Group 4.23 5,523 6,510 2,354 2,521 7.1% 2.8 2.6 0.27 0.30 9.9% 15.4 14.0 NetSuite 39.18 2,515 2,363 108 159 47.0% 21.9 14.9 (0.10) 0.13 nm nm nm Lawson 9.74 1,774 1,539 799 864 8.1% 1.9 1.8 0.29 0.40 37.9% 33.6 24.4 Concur 33.47 1,583 1,423 146 213 45.8% 9.8 6.7 0.41 0.48 17.1% 81.6 69.7 Blackbaud 26.75 1,213 1,210 255 298 16.9% 4.7 4.1 0.83 1.03 24.1% 32.2 26.0 Synchronoss Technologies 33.35 1,094 1,006 123 167 36.0% 8.2 6.0 0.71 0.91 28.2% 47.0 36.6 Ultimate Software 36.34 1,009 984 151 184 21.6% 6.5 5.4 0.71 0.70 -1.4% 51.2 51.9 Ariba 10.84 876 746 303 350 15.6% 2.5 2.1 0.30 0.54 80.0% 36.1 20.1 Kenexa 32.24 832 719 182 221 21.6% 4.0 3.2 1.15 1.39 20.9% 28.0 23.2 JDA Software 20.83 732 751 366 380 3.8% 2.1 2.0 1.32 1.48 12.1% 15.8 14.1 Manhattan Associates 27.84 725 643 341 374 9.7% 1.9 1.7 1.33 1.51 13.5% 20.9 18.4 Deltek 14.79 672 904 276 313 13.5% 3.3 2.9 0.68 0.77 13.2% 21.8 19.2 SuccessFactors 11.60 671 586 65 110 70.7% 9.1 5.3 (1.73) (1.63) nm nm nm Epicor Software 11.20 663 676 421 459 9.1% 1.6 1.5 0.84 0.97 15.5% 13.3 11.5 Rightnow Technologies 18.30 632 542 111 138 24.4% 4.9 3.9 (0.39) - nm nm nm DemandTec 15.85 469 396 54 75 38.2% 7.3 5.3 (0.30) 0.25 nm nm 63.4 PROS 16.98 444 404 62 79 27.8% 6.6 5.1 0.41 0.47 14.6% 41.4 36.1 Guidance Software 12.37 292 258 78 99 27.0% 3.3 2.6 0.07 0.24 242.9% nm 51.5 Mean $ 365 $ 423 25.4% 5.8 x 4.4 x $ 0.36 $ 0.54 45.0% 33.7 x 32.0 x Notes: Enterprise value equals equity value, plus debt, less cash Median 182 221 21.6% 4.7 3.9 0.41 0.48 17.1% 32.2 24.4 P/E multiples in excess of 100x are considered to be not meaningful [a] Wall Street consensus estimates Source: Company releases, Wall Street research, Shea & Company proprietary & confidential 22
Page 1 and 2: Annual Infrastructure & Application
Page 3 and 4: 2007 Infrastructure & Application S
Page 9 and 10: 2006 - 2007 Software M&A Transactio
Page 15 and 16: Public Company Participants & Conso
Page 17 and 18: Public Company Participants & Conso
Page 19 and 20: Most Active Public Consolidation Pl
Page 21: Most Active Public Consolidation Pl
Page 25 and 26: Trading Multiples by Segment contin
Page 27 and 28: Trading Multiples by Comparable Sub
Page 29 and 30: Software IPO Pipeline ($ millions)
Page 31: Notable Transactions Financial term

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