About The Control Premium Study - BVMarketData

Mergerstat Control Premium Study4th Quarter 2006About The Control Premium StudyA control premium is defined as the additional consideration that an investor would pay over a marketableminority equity value (i.e., current, publicly traded stock prices) in order to own a controlling interest in thecommon stock of a company. In this study, the premium is expressed as a percentage of the unaffected marketableminority price per share or the “Mergerstat Unaffected Price.” This is the price just prior to the point of changein the representative normal pricing of a given security.FactSet Mergerstat examines transactions whereby 50.01 percent or more of a company was acquired. Acontrolling interest is considered to have greater value than a minority interest because of the purchaser’s abilityto effect changes in the overall business structure and to influence business policies. Control premiums can varygreatly. Factors affecting the magnitude of a given control premium include:• The nature and magnitude of nonoperating assets.• The nature and magnitude of discretionary expenses.• The perceived quality of existing management.• The nature and magnitude of business opportunities which are not currently being exploited.• The ability to integrate the acquiree into the acquirer’s business or distribution channels.In order to obtain unbiased and accurate pricing information, the scope of this study has been narrowed tocompleted transactions where the target company was publicly traded. For domestic transactions, Premiumsranged from -34.6% for Aames Investment Corp. to 168.0% for Educational Insights, Inc.. For internationaltransactions, Premiums ranged from -89.6% for STJ Technology Ltd.(Fulbond Holdings Ltd.) to 204.1% forAnorMED, Inc.. FactSet Mergerstat does not include negative premiums in calculating average and medianstatistics. If negative premiums had been included in the calculations for the 4th Quarter 2006, the results wouldhave been as follows:Including Negative PremiumsExcluding Negative Premiums# of Deals Premium # of Deals PremiumDomestic Average 101 29.2% 95 32.0%Domestic Median 101 18.0% 95 19.7%International Average 71 13.6% 53 25.9%International Median 71 11.2% 53 17.9%Overall Average 172 22.8% 148 29.8%Overall Median 172 15.4% 148 19.2%Throughout the Control Premium Study, negative premiums are indicated by an “*” for your reference.Anna BertheliusResearch Analyst(310) 315-3113aberthelius@factset.comKimberly LinResearch Analyst(310) 315-3103klin@factset.comCopyright © 2007, FactSet Mergerstat, LLC. All rights reserved.ii

Mergerstat Control Premium Study4th Quarter 2006Control Premium Analytics *Overall80%70%60%Premium# of Deals Average MedianDeals20016050%12040%30%8020%10%400%4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q060DomesticInternational80%PremiumDeals20070%PremiumDeals14070%60%50%40%30%20%175150125100755060%50%40%30%20%12010080604010%2510%200%4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06# of Deals Average Median00%4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06# of Deals Average Median04Q06Latest Twelve MonthsInternational41%International46%Domestic59%Domestic54%* Average & median calculations exclude negative premiumsCopyright © 2007, FactSet Mergerstat, LLC. All rights reserved. 1

Mergerstat Control Premium Study4th Quarter 2006Control Premium Study Results *MERGERSTATCONTROL PREMIUM STUDYCOMPARATIVE RESULTS12-Month Median 3-Month Median TransactionsControlPremium45%40%35%30%25%20%15%10%5%0%4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q0612-Month Median 38% 36% 30% 27% 26% 24% 24% 23% 24% 22% 22% 22% 21%3-Month Median 37% 31% 24% 24% 27% 20% 23% 22% 30% 20% 25% 21% 19%Transactions 90 93 126 103 142 115 127 121 150 149 110 134 172Percentages are rounded.* Median calculations excludes negative premiumsCopyright © 2007, FactSet Mergerstat, LLC. All rights reserved. 2

Mergerstat Control Premium Study4th Quarter 200612-Month Median Premiums by Industry*MERGERSTATCONTROL PREMIUM STUDY12-MONTH MEDIAN PREMIUMS BY INDUSTRY60%40%20%0%Agri Mining Const Mfg Trans Comm Elec &GasWhsle Retail Fin Svs ServicesMedian Premium 0% 27% 7% 25% 17% 22% 26% 21% 17% 20% 21%No. of Transactions 1 56 14 156 18 26 8 8 32 132 110For the 12 months ended Dec. 31, 2006.2006 2005 2004Quarter3-MonthMedianPremiumNo. ofTrans.12-MonthMedianPremium3-MonthMedianPremiumNo. ofTrans.12-MonthMedianPremium3-MonthMedianPremiumNo. ofTrans.12-MonthMedianPremiumFirst 19.7% 149 22.3% 20.2% 115 24.4% 31.4% 93 36.3%Second 25.2% 110 22.4% 23.3% 127 24.1% 24.5% 126 29.5%Third 20.5% 134 22.2% 21.6% 121 23.0% 23.5% 103 27.0%Fourth 19.2% 172 20.6% 30.2% 150 24.4% 26.9% 142 25.8%The 12-month median premiums were gathered from transactions occurring within a trailing 12-month period, whereas the 3-month medianpremiums represent similar analyses for a 3-month period.* Median calculations excludes negative premiums.Copyright © 2007, FactSet Mergerstat, LLC. All rights reserved. 3

Mergerstat Control Premium Study4th Quarter 2006Premiums vs. S&P 500 Index *MERGERSTATCONTROL PREMIUM STUDYPREMIUMS VS. S&P 500 INDEXS&P 500 Index12-Month Median1,60045%1,50042%1,40039%1,30036%S&P 500 Index1,2001,1001,00033%30%27%Control Premiums90024%80021%7004Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q0618%S&P 500 Index 1,111.9 1,126.2 1,140.8 1,114.6 1,211.9 1,180.6 1,191.3 1,228.8 1,248.3 1,418.3 1,418.3 1,418.3 1,418.312-Month Median 38% 36% 30% 27% 26% 24% 24% 23% 24% 22% 22% 22% 21%* Excludes negative premiums.Copyright © 2007, FactSet Mergerstat, LLC. All rights reserved. 4

Mergerstat Control Premium Study4th Quarter 2006Summary Statistics4TH QUARTER 2006Domestic TransactionsNumber of Transactions 101Range -34.6% to 168.0%Median* 19.7%Average* 32.0%International TransactionsNumber of Transactions 71Range -89.6% to 204.1%Median* 17.9%Average* 25.9%Domestic and International TransactionsNumber of Transactions 172Range -89.6% to 204.1%Median* 19.2%Average* 29.8%12-MONTH SUMMARY FIGURES (01/01/06 TO 12/31/06)Number of Transactions 565Range -89.6% to 246.8%Median* 20.6%Average* 29.0%* Excludes negative premiums.Copyright © 2007, FactSet Mergerstat, LLC. All rights reserved. 5