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Emily Mendell, NVCA, 610-565-3904, emendell@nvca.orgMatthew Toole, Thomson Financial, 646-822-7560, matthew.toole@thomson.comSandy 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 ValueHits 7 Year High

New York, NY- January 2, 2008 Thirty-one venture-backed initial public offerings totaling $3.0 billionin proceeds were issued in the fourth quarter of 2007, according to the Exit Poll report by ThomsonFinancial and the National Venture Capital Association (NVCA). This volume represents the highestquarterly number of IPOs since the third quarter of 2000. For the year, 86 venture-backed companies wentpublic 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 ofwhich had a combined disclosed value totaling $6.7 billion, the lowest number of total M&A exits since 1Q1998 when there were 44 M&A exits. For the year, there were 305 venture-backed M&A transactions witha 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 IPOs and M&A transactions,said Mark Heesen, president of the NVCA. In the coming year, we would like to uphold that qualitywhile increasing quantity on both exit fronts. An ideal year would see more than one hundred venture-backed IPOs and 350 or more acquisitions. But we dont want to sacrifice quality to hit that threshold.

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

Quarter/Year

TotalM&ADeals

M&ADeals withDisclosed

Values

*TotalDisclosed

M&AValue($M)

*AverageM&A

Deal Size($M)

**Numberof IPO's

TotalOffer

Amount($M)

AverageIPO OfferAmount

($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

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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 publicmarket with 17 IPOs raising $1.5 billion during the fourth quarter. This activity represents an increasefrom the previous quarter when there were nine issues in the IT sector accounting for $684.5 million inproceeds. 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 anundisclosed firm across two rounds.

The Life Sciences industry accounted for an additional ten venture-backed IPOs during the fourth quarterof 2007. The largest issue in this sector was the $98.0 million issue by Nanosphere, Inc., an Illinois basedcompany whose Verigene System automates the analysis and ultra-sensitive detection of nucleic acids andproteins. Venture investors in the company include Allen & Company, Bain Capital, BrooksideInternational Incorporated, Lurie Investment Fund, NGEN Partners LLC, and undisclosed individuals andinvestors. 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 IPOs, totaling 47 issues and $6.0billion in volume. Life Sciences followed with 32 issues and $2.6 billion in proceeds.

Venture-Backed IPO Industry BreakdownQ4 2007

Industry

*Numberof

Venture-BackedIPOs inthe U.S.

TotalVenture-Backed

OfferingSize ($M)

Internet Specific 4 291.2

Communications and Media 2 134.7

Computer Software andServices 7 836.9

Semiconductors/Other Elect. 4 246.8InformationTechnology 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 2 383.0Non 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

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The Boston metropolitan region, followed by San Jose and Chicago, had the most venture-backedcompanies with IPO exits in the fourth quarter. In Boston, there was one IPO apiece in Communicationsand Media, Computer Software and Services, Semiconductors and Other Electric, and Biotechnologyindustries. In San Jose, there was one issue each in Computer Software and Services, Biotechnology, andMedical/Health sectors. Chicago, had offerings in Communications and Media, Semiconductors and OtherElectric, and Biotechnology.

Foreign IPOs on US exchanges accounted for $933.0 million in proceeds in the fourth quarter, the highestproceeds since 1Q 2004 when two issues, led by the largest venture capital issue ever, SemiconductorManufacturing International Corporation, raised $1.9 billion. The largest issue by proceeds of the quarterwas by Chinese company China Nepstar Chain Drugstore, Ltd., a retail drugstore chain in China, whichraised $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 byventure-backed companies which went public in 2007. The region accounted for 21.5% of the annual valueof funds raised by companies in the US marketplace. Boston followed with 17 issues and $1.3 billion involume.

4Q 2007 Venture-Backed IPO Metro Region

Breakdown

Metro Region

*Number ofVenture-BackedIPO'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 weretrading at or above their offering price.

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

In addition to the U.S. market activity, ten companies that received US venture financing went public onforeign 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 Incs $1.2 billion issue in April, the thirdlargest issue of all time.

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Merger and Acquisition Overview

In the fourth quarter of 2007, only 46 venture-backed M&A deals were completed, the lowest level since1Q 1998, when 44 disclosed deals accounted for $3.1 billion in value. While deal volume was at a nineyear low, average disclosed quarterly dollar volume reached $290.2 million, the highest level seen since theyear 2000.

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

Venture-Backed M&A Industry Breakdown

Q4 2007

Industry

Number ofVenture-BackedM&Adeals

Number ofVenture-

BackedM&A

deals witha disclosed

value

TotalDisclosed

Venture-Backed

DealValue($M)

Communications and Media 3 1 140.0

Internet Specific 12 4 668.5

Computer Software andServices 13 7 1151.0

Semiconductors/Other Elect. 3 - -

Computer Hardware 1 - -InformationTechnology TOTAL 32 12 1,959.5

Medical/Health 9 7 2491.4

LifeSciences 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 GlaxoSmithKlinePLC in December. The second largest deal was the $925 million acquisition of womens televisionnetwork Oxygen Media LLC by NBC Universal in October.

Decembers Reliant Pharmaceuticals deal represents the largest deal of the year followed by the $1.4billion 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 ventureinvestment, accounted for 45 percent of the total compared to 60 percent last quarter. Those deals returningless than the amount invested accounted for 20 percent of the quarters total, up from 13 percent of the totallast quarter. For the full year 2007, 43 percent of the M&A transactions returned more than four times theventure investment, compared to 36 percent in 2006. Twenty-five percent of the deals in 2007 hadtransaction values less than the venture investment compared to 2006 when 28 percent of the deals werevalued at less than the venture investment.

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Analysis of Transaction Values versus Amount Invested

Relationship between transaction value andinvestment

Q307M&A**

Q407M&A**

2006M&A**

2007M&A**

Deals where transaction value is less than totalventure investment 6 4 42 32

Deals where transaction value is 1-4x total

venture investment 13 7 54 42Deals where transaction value is 4x-10x totalventure investment 16 2 30 28

Deals where transaction value is greater than10x 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 notincluded.

About Thomson FinancialThomson Financial, with 2006 revenues of US$2 billion, is a provider of information and technologysolutions 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 moreproductive 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 andprofessional customers. With operational headquarters in Stamford, Conn., Thomson provides value-addedinformation, software tools and applications to professionals in the fields of law, tax, accounting, financialservices, scientific research and healthcare. The Corporation's common shares are listed on the New Yorkand Toronto stock exchanges (NYSE: TOC; TSX: TOC).

The National Venture Capital Association (NVCA) represents approximately 480 venture capital andprivate equity firms. NVCA's mission is to foster greater understanding of the importance of venture capitalto the U.S. economy, and support entrepreneurial activity and innovation. According to a 2007 GlobalInsight study, venture-backed companies accounted for 10.4 million jobs and $2.3 trillion in revenue in theUnited 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 professionaldevelopment, and facilitates interaction among its members. For more information about the NVCA, pleasevisit www.nvca.org.