Exhibit (c) (3)

 

September 6, 2006 Valuation Materials for the Special Committee 445 Park Avenue New York, NY 10022-4406 (212) 371-8300 One Post Office Square, 19th Floor Boston, MA 02109 (617) 457-0910 3000 Sand Hill Road, Building 2 Menlo Park, CA 94025 (650) 854-9111 One Ferry Building, Suite 240 San Francisco, CA 94111 (415) 262-4860 Project Meteor

 

Table of Contents Review of Financial Projections Section 1 Public Company Valuation Analysis M&A Transaction Analysis Premiums Paid Analysis Purchase Price Ratio Analysis Stock Price Trading Analysis Preliminary Valuation Analyses Section 2

 

Review of Financial Projections

 

Management Case – Meteor without AOA ($ in millions) Notes: (1) Data reflects Meteor internal projections. (2) Excludes non-recurring items and one-time charges Fiscal Year Ending December 31,2004A2005A2006E (1)2007E (1)2008E (1)2009E (1)2010E (1)Revenue$149.6$178.3$219.9$272.3$335.9$409.5$494.2Cost of goods sold75.594.6126.9149.8180.3218.0256.3Gross profit74.183.793.0122.5155.6191.6237.9Research & development6.47.210.614.417.220.825.6SG&A33.051.247.253.962.873.185.0Other operating expense6.96.912.312.512.713.113.6Total operating expenses46.265.370.280.892.7107.0124.1GAAP EBIT27.818.422.841.762.984.6113.8Interest and other income (expense)2.21.918.84.76.79.513.2EBT30.020.341.646.369.694.1127.0Income taxes 9.94.514.816.725.133.945.7GAAP Net Income$20.1$15.8$26.8$29.7$44.6$60.2$81.3Add back: Non-recurring items, net of tax$0.0$9.8($9.6)$0.0$0.0$0.0$0.0Non-GAAP Net income$20.1$25.7$17.2$29.7$44.6$60.2$81.3Non-GAAP EPS$0.88$1.11$0.74$1.28$1.92$2.60$3.50Fully Diluted Shares Outstanding23.023.123.223.223.223.223.2Non-GAAP EBITDA(2)$31.9$37.1$30.9$50.7$72.9$95.4$124.4Non-GAAP EBIT(2)$27.8$31.0$24.3$41.7$62.9$84.6$113.8Growth Analysis/Assumptions:Revenue growth 26.4%19.2%23.3%23.8%23.4%21.9%20.7%Margin Analysis/Assumptions:Gross margin49.5%47.0%42.3%45.0%46.3%46.8%48.1%R&D4.2%4.0%4.8%5.3%5.1%5.1%5.2%SG&A22.1%28.7%21.5%19.8%18.7%17.8%17.2%EBITDA margin(2)21.3%20.8%14.1%18.6%21.7%23.3%25.2%Operating margin(2)18.6%17.4%11.0%15.3%18.7%20.7%23.0%Profit margin(2)13.4%14.4%7.8%10.9%13.3%14.7%16.4%Tax Rate33.0%22.0%35.6%36.0%36.0%36.0%36.0%

 

Management Case – Non-GAAP Reconciliation ($ in millions) Notes: (1) Data reflects Meteor internal projections. Fiscal Year Ending December 31,2004A2005A2006E (1)2007E (1)2008E (1)2009E (1)2010E (1)GAAP EBIT27.8$ 18.4$ 22.8$ 41.7$ 62.9$ 84.6$ 113.8$ Payments related to Symbol litigation-12.61.5----Sub-total non-recurring charges-$ 12.6$ 1.5$ -$ -$ -$ -$ Non-GAAP EBIT27.8$ 31.0$ 24.3$ 41.7$ 62.9$ 84.6$ 113.8$ Interest & other income (expense)Gain on AOA sale, book basis, pre-tax--16.4----Total non-recurring charges-$ 12.6$ (15.0)$ -$ -$ -$ -$ GAAP Net Income20.1$ 15.8$ 26.8$ 29.7$ 44.6$ 60.2$ 81.3$ Non-recurring items, net of tax-9.8(9.6)----Non-GAAP Net Income20.1$ 25.7$ 17.2$ 29.7$ 44.6$ 60.2$ 81.3$ 

 

Preliminary Valuation Analyses

 

Purchase Price Ratio Analysis

 

Purchase Price Ratio Analysis – Meteor without AOA ($ in Thousands) Notes: (1) Reflects common share equivalents underlying options as calculated using the Treasury Stock method. (2) Source: Meteor management forecasts without AOA and historical performance. (3) Reflects Francisco Partners estimates based on input from Meteor management. Assumed Mid-Point Current Offer Purchase Price per Share:18.00$ 18.50$ 19.00$ 19.50$ 20.00$ Purchase Price Premium/(Discount) to:Current stock price (09/05/06)16.32$ 10.3%13.4%16.4%19.5%22.5%Price 5 Days Ago16.509.1%12.1%15.2%18.2%21.2%Price 30 Days Ago14.7721.9%25.3%28.6%32.0%35.4%Price 60 Days Ago14.9820.2%23.5%26.8%30.2%33.5%Price 90 Days Ago17.502.9%5.7%8.6%11.4%14.3%Target Shares Outstanding22,68722,68722,68722,68722,687Additional Shares from Option Conversion(1)603608612615619Target Diluted Shares Outstanding23,29023,29423,29823,30223,306Equity Value419,222$ 430,946$ 442,670$ 454,395$ 466,119$ Plus: Total Debt as of 06/30/0616,57616,57616,57616,57616,576Less: Cash as of 06/30/06(65,737)(65,737)(65,737)(65,737)(65,737)Less: Net cash proceeds from AOA divestiture(35,163)(35,163)(35,163)(35,163)(35,163)Enterprise Value334,898$ 346,622$ 358,346$ 370,071$ 381,795$ Meteor Projected Financials (2)Enterprise Value as a Multiple of:Twelve Months Ending December 31, 2005A Revenue178,317$ 1.9x1.9x2.0x2.1x2.1xTwelve Months Ending September 30, 2006E Revenue(3)209,9601.6x1.7x1.7x1.8x1.8xTwelve Months Ending December 31, 2006E Revenue219,9261.5x1.6x1.6x1.7x1.7xTwelve Months Ending December 31, 2005A EBITDA37,124$ 9.0x9.3x9.7x10.0x10.3xTwelve Months Ending September 30, 2006E EBITDA(3)30,16211.1x11.5x11.9x12.3x12.7xTwelve Months Ending December 31, 2006E EBITDA30,91710.8x11.2x11.6x12.0x12.3xTwelve Months Ending December 31, 2005A EBIT31,021$ 10.8x11.2x11.6x11.9x12.3xTwelve Months Ending September 30, 2006E EBIT(3)23,77414.1x14.6x15.1x15.6x16.1xTwelve Months Ending December 31, 2006E EBIT24,26213.8x14.3x14.8x15.3x15.7xEquity Value as a Multiple of:Twelve Months Ending December 31, 2005A Net Income25,674$ 16.3x16.8x17.2x17.7x18.2xTwelve Months Ending December 31, 2006E Net Income17,16824.4x25.1x25.8x26.5x27.2xBook Value (06/30/06)186,446$ 2.2x2.3x2.4x2.4x2.5x

 

Stock Price Trading Analysis

 

LTM Stock Price Performance Source: Factset, September 5, 2006. Note:Selected Companies include Datalogic SpA, NCR Corp., Symbol Technologies, Intermec, Inc., Zebra Technologies Corp. 9/2/059/30/0511/2/0512/2/051/2/062/2/063/3/064/4/065/5/066/5/067/5/068/4/069/5/06708090100110120130140150Indexed PriceS&P 500 IndexNasdaq Composite IndexMeteorSelected Companies

 

5 Year Stock Price Performance Source: Factset, September 5, 2006. Note:Selected Companies include Datalogic SpA, NCR Corp., Symbol Technologies, Intermec, Inc., Zebra Technologies Corp. 9/4/012/1/027/5/0212/4/025/6/0310/3/033/5/048/4/041/4/056/3/0511/4/054/5/069/5/06-1001003005007009001,1001,300Indexed PriceS&P 500 IndexNasdaq Composite IndexMeteorSelected Companies

 

Stock Price Performance Since July 1, 2005 Source: Factset, September 5, 2006. 7/1/058/31/0511/1/051/2/063/3/065/5/067/6/069/6/06$10.00$12.00$14.00$16.00$18.00$20.00$22.00$24.00$26.00Share Price02004006008001,0001,200Volume in ThousandsPrice/Volume in U.S. Dollar01-Jul-2005 - 05-Sep-2006

 

5 Year Stock Price Performance Source: Factset, September 5, 2006. 8/31/015/17/022/4/0310/24/037/9/043/30/0512/16/059/4/06$0.00$5.00$10.00$15.00$20.00$25.00$30.00$35.00$40.00Share Price05001,0001,5002,0002,5003,000Volume in ThousandsPrice/Volume in U.S. Dollar31-Aug-2001 - 01-Sep-2006

 

Volume Traded At Various Price Levels 3 Month 6 Month 1 Year 3 Year Source:FactSet, as of September 5, 2006. $13.44 - $14.08$14.08 - $14.72$14.72 - $15.36$15.36 - $16.00$16.00 - $16.64$16.64 - $17.28Price0.00.51.01.52.02.53.03.54.04.55.0Volume in (Millions)10.0%32.7%40.3%1.1%16.0%0.0%$13.94 - $15.94$15.94 - $17.94$17.94 - $19.94$19.94 - $21.94$21.94 - $23.94Price4.05.06.07.08.09.010.011.012.013.0Volume in (Millions)31.7%15.0%19.4%20.3%13.5%$12.38 - $16.38$16.38 - $20.38$20.38 - $24.38$24.38 - $28.38$28.38 - $32.38Price5.010.015.020.025.030.035.040.045.050.055.0Volume in (Millions)29.2%32.2%21.7%11.6%5.2%$13.11 - $15.11$15.11 - $17.11$17.11 - $19.11$19.11 - $21.11$21.11 - $23.11Price1.02.03.04.05.06.07.08.09.010.0Volume in (Millions)38.7%27.8%8.1%6.8%18.6%

 

Public Company Valuation Analysis

 

Public Company Valuation Analysis – Valuation MetricsNotes: (1) Market value reflects common share equivalents underlying options and warrants as calculated using the treasury stock method. (2) Financial data underlying multiples converted to USD at an exchange rate of $1.2835. (3) Enterprise Value reflects $35 million of net proceeds from sale of AOA. LTM financial data represents Francisco Partners estimates based on input from Meteor management.and excludes the contribution of AOA. Source: SEC company filings, Wall Street consensus estimates and FactSet. Current market statistics as of August 21, 2006. All financials are net of non-recurring events. Long-term securities are included in cash balances. (in thousands, except per share amounts)Enterprise Value /Market EnterpriseRevenuesEBITDALTMPrice / EPSCompanyValue(1)ValueLTMCY '06ECY '07ELTMCY '06ECY '07EEBITLTMCY '06ECY '07EDatalogic SPA(2)452,380$ 522,739$ 1.5x1.1xNA14.2xNANA16.2x20.9x29.3xNANCR Corporation6,288,9835,870,9831.0x1.0x0.9x8.7x8.7x7.7x13.6x13.3x18.1x15.3xSymbol Technologies, Inc.3,196,9693,005,4381.7x1.7x1.6x13.4x11.9x10.2x19.6x23.5x26.6x20.6xIntermec Inc.1,975,9451,753,1321.9x1.8x1.7x21.9x21.9x16.1x25.1x36.6x41.4x29.5xZebra Technologies Corp.2,454,5211,869,6742.6x2.5x2.3x11.2x11.7x10.5x12.2x21.9x22.6x19.9xMean2,873,760$ 2,604,393$1.7x1.6x1.6x13.9x13.6x11.1x17.3x23.2x27.6x21.3xMedian2,454,5211,869,6741.7x1.7x1.6x13.4x11.8x10.3x16.2x21.9x26.6x20.3xHigh 6,288,9835,870,9832.6x2.5x2.3x21.9x21.9x16.1x25.1x36.6x41.4x29.5xLow452,380522,7391.0x1.0x0.9x8.7x8.7x7.7x12.2x13.3x18.1x15.3xMgmt. Case at $19.00 per share(3)442,670$ 358,346$1.7x1.6x1.3x11.9x11.6x7.1x15.1xNA25.7x14.9x

 

Public Company Valuation Analysis – Market StatisticsNotes: (1) Includes common share equivalents underlying options and warrants as calculated using the treasury stock method. (2) Enterprise Value reflects $35 million of net proceeds from sale of AOA. Source: SEC company filings, Wall Street consensus estimates and FactSet. Current market statistics as of September 05, 2006. Long-term securities are included in cash balances. (in thousands, except per share amounts)Price52 Week RangeSharesMarket EnterpriseCompanyTicker9/5/2006HighLowOutstanding(1)ValueValueDatalogic SPADAL IM7.13$ 9.16$ 6.53$ 63,419452,380$ 522,739$ NCR CorporationNCR34.8044.4529.09180,7186,288,9835,870,983Symbol Technologies, Inc.SBL11.9513.708.01267,5293,196,9693,005,438Intermec Inc.IN30.6538.8120.5064,4681,975,9451,753,132Zebra Technologies Corp.ZBRA34.6347.9729.2370,8782,454,5211,869,674Mgmt. Case at $19.00 per share(2)19.00$ 23,298442,670$ 358,346$ 

 

Public Company Valuation Analysis – Growth AnalysisNotes: (1) Financial data converted to USD at an exchange rate of $1.2818. (2) Excludes the contribution of AOA. Source: SEC company filings, Wall Street consensus estimates and FactSet. All financials are net of non-recurring events. (in thousands, except per share amounts)RevenueEBITDAEPSLast Twelve MonthsCompanyCY '05ACY '06ECY '07ECY '05ACY '06ECY '07ECY '05ACY '06ECY '07EDatalogic SPA(1)267,392$ 489,981$ NA83.2%40,438$ NANANA0.41$ 0.24$ NA-40.8%NCR Corporation6,028,0006,115,2006,265,0701.4%657,000674,980763,7602.7%2.801.922.28-31.4%Symbol Technologies, Inc.1,765,6311,818,5101,937,5703.0%168,006252,680295,56050.4%0.340.450.5830.9%Intermec Inc.875,482952,4001,023,2808.8%67,74679,880108,98017.9%0.630.741.0416.8%Zebra Technologies Corp.702,271747,430811,9306.4%169,327159,930178,630-5.5%1.561.531.74-1.7%Mean20.6%16.4%-5.2%Median6.4%10.3%-1.7%High 83.2%50.4%30.9%Low1.4%-5.5%-40.8%Mgmt. Case at $19.00 per share(2)178,317$ 219,926$ 272,263$ 23.3%37,124$ 30,917$ 50,714$ -16.7%1.11$ 0.74$ 1.28$ -33.4%06E/05A Growth06E/05A Growth06E/05A Growth

 

Public Company Valuation Analysis – Margin AnalysisNotes: (1) Financial data converted to USD at an exchange rate of $1.2818. (2) LTM financial data represents Francisco Partners estimates based on input from Meteor management.and excludes the contribution of AOA. Source: SEC company filings, Wall Street consensus estimates and FactSet. All financials are net of non-recurring events. (in thousands, except per share amounts)Last Twelve MonthsLTM Margin AnalysisCompanyGross ProfitEBITDAEBITNet IncomeGross ProfitEBITDAEBITNet IncomeDatalogic SPA(1)161,013$ 36,934$ 32,251$ 14,944$ 47.0%10.8%9.4%4.4%NCR Corporation1,741,000672,000433,000491,00028.9%11.1%7.2%8.1%Symbol Technologies, Inc.814,640223,489153,134111,19245.8%12.6%8.6%6.3%Intermec Inc.382,57279,89569,83654,04641.6%8.7%7.6%5.9%Zebra Technologies Corp.350,129167,629153,624112,91748.8%23.3%21.4%15.7%Mean42.4%13.3%10.8%8.1%Median45.8%11.1%8.6%6.3%High 48.8%23.3%21.4%15.7%Low28.9%8.7%7.2%4.4%Mgmt. Case at $19.00 per share(2)89,030$ 30,162$ 23,774$ NA42.4%14.4%11.3%NA

 

Public Company Valuation Analysis – Balance Sheet MetricsNotes: (1) Financial data converted to USD at an exchange rate of $1.2818. (2) Cash balance includes $35 million of proceeds from sale of AOA. Source: SEC company filings and FactSet. Long-term securities are included in cash balances. (in thousands, except per share amounts)Balance Sheet DataCash &TotalPref. Stock+CommonTotalTotal Debt/CompanyCash Equiv.DebtMin. InterestEquityCapitalizationTotal Cap.Datalogic SPA(1)44,141$ 114,501$ -$ 256,209$ 370,709$ 30.9%NCR Corporation747,000307,00022,0002,121,0002,450,00012.5%Symbol Technologies, Inc.258,19766,666-1,284,4311,351,0974.9%Intermec Inc.322,813100,000-518,798618,79816.2%Zebra Technologies Corp.584,847--921,069921,0690.0%Mgmt. Case at $19.00 per share(2)100,900$ 16,576$ -$ 186,446$ 203,022$ 8.2%

 

Public Company Valuation Analysis – Historic MetricsSource:Capital IQ as of September 5, 2006. Revenue Growth20022003200420052006Datalogic SpANA11.6%12.5%40.8%83.2%NCR Corp.-5.6%0.2%6.9%0.7%1.4%Symbol Technologies Inc.-5.8%9.2%13.2%1.9%3.0%Intermec Inc.-47.9%-5.1%14.8%7.9%8.8%Zebra Technologies Corp.5.7%12.8%23.6%5.9%6.4%Mean-13.4%5.7%14.2%11.5%20.6%Meteor3.4%19.2%28.9%18.3%23.3% Gross Margin 2002 2003 2004 2005 2006 Datalogic SpA 21.5% 19.3% 17.9% 48.9% NA NCR Corp. 28.4% 27.4% 27.0% 28.7% NA Symbol Technologies Inc. 36.6% 44.4% 47.1% 44.8% NA Intermec Inc. 45.1% 41.0% 42.6% 41.4% NA Zebra Technologies Corp. 48.5% 50.9% 51.8% 50.4% NA Mean 36.0% 36.6% 37.3% 42.9% NA Meteor 35.8% 42.3% 45.9% 43.2% 42.3%

 

Operating Margin 2002 2003 2004 2005 2006 Datalogic SpA 8.3% 8.1% 9.7% 11.9% NA NCR Corp. 3.4% 2.3% 3.9% 6.8% 7.5% Symbol Technologies Inc. 2.5% 6.6% 8.4% 5.5% 9.8% Intermec Inc. 11.6% 6.3% 8.1% 6.6% 7.4% Zebra Technologies Corp. 22.1% 24.5% 26.7% 22.2% 19.4% Mean 9.6% 9.5% 11.4% 10.6% 11.0% Meteor 5.4% 14.6% 17.8% 15.9% 11.0%Public Company Valuation Analysis – Historic MetricsSource:Capital IQ as of September 5, 2006. EBITDA Margin20022003200420052006Datalogic SpA14.6%12.9%12.3%15.1%NANCR Corp.9.3%7.9%8.5%10.9%11.0%Symbol Technologies Inc.7.4%11.1%12.9%9.5%13.9%Intermec Inc.14.0%8.3%9.5%7.7%8.4%Zebra Technologies Corp.24.7%26.6%28.6%24.1%21.4%Mean14.0%13.4%14.3%13.5%13.7%Meteor8.3%17.3%20.5%19.3%14.1%

 

Public Company Valuation Analysis – Historic MetricsSource:Capital IQ as of September 5, 2006. Net Margin20022003200420052006Datalogic SpA4.7%4.8%5.6%7.5%NANCR Corp.-3.9%1.0%4.8%8.8%5.8%Symbol Technologies Inc.-3.2%0.2%4.7%4.9%6.4%Intermec Inc.0.3%1.6%2.7%4.6%5.1%Zebra Technologies Corp.15.1%17.1%18.2%16.0%14.5%Mean2.6%4.9%7.2%8.3%8.0%Meteor1.8%10.1%12.7%12.3%7.8%

 

M&A Transaction Analysis

 

Selected M&A Transactions Analysis Notes: (1) Enterprise Value for transactions assumed equal to Equity Value for private company analysis. (2) Not included for the purpose of calculating summary statistics (3) Target revenue provided by Metrologic Instruments in segmented sales analysis. (4) Target revenue provided by 2002 press release. (5) Enterprise Value reflects $35 million of net proceeds from sale of AOA. LTM financial data represents Francisco Partners estimates based on input from Meteor management.and excludes the contribution of AOA. ($ in millions) Transactions Valued between $10M - $500M Annc.CloseEquityEnterpriseEnterprise Value / LTMEquity Value /DateDateAcquirorTargetTarget BusinessValueValueSalesEBITDAEBITLTM Net Inc.Book Value11/07/0501/27/06SingulusRAG AGManufactures systems solutions for producers$ 12.1 $ 19.5 $ 163.7 $ 3.3 $ (8.2)$ (27.7)$ 73.3 Technologies SAof optical storage media0.1x5.9xNMNM0.2x10/24/0512/01/05Datalogic SpAPSC Group LLCProvides information tech. services and195.0 195.0 (1) 228.0 21.6 11.3 2.4 NA manufactures fixed position bar code scanners0.9x9.0x17.3x81.3x(2) NA05/09/0505/09/05Cognex Corp.DVT Corp.Dvlps general purpose machine vision systems115.0 110.8 29.3 6.9 6.1 4.1 13.7 and smart camera products3.8x16.1x18.2x28.0x8.4x03/23/0505/02/05Axsys Technologies, Diversified Optical Manufactures thermal surveillance camera 62.4 60.0 (1) 22.0 3.7 2.7 2.5 7.3 Inc.Products, Inc.systems and lenses2.7x16.2x22.2x25.0x8.5x02/03/0503/01/05Datalogic SpAInformatics, Ltd.Manufactures and markets bar coding 26.2 26.2 (1) 34.0 NA NA NA NA products0.8xNANANANA02/14/0502/14/05Cypress Semiconductor Corp.SMal Camera Designs and manufactures digital cameras 42.5 63.2 9.9 (6.8)(7.6)(7.6)(18.2)Technologies, Inc.and provides digital imaging solutions6.4xNMNMNMNM09/27/0409/27/04Metrologic Instruments, Inc.Omniplanar, Inc.(3)Develops sensors and computer hardware 13.0 13.0 (1) 2.6 NA NA NANA NA Instruments, Inc.and software technology for bar code reading5.0xNANANANA07/26/0409/09/04Symbol Technologies, Matrics, Inc.Designs and manufactures radio frequency 230.0 268.0 6.4 (16.3)(16.4)(19.1)(34.8)Inc.identification labels and tags41.9x(2) NMNMNMNM10/16/0311/21/03Danaher CorporationAccu-Sort Systems, Manufacture and marketing of fixed position 63.0 63.0 (1) 90.0 NA NA NA NA Inc.industrial bar code scanners0.7xNANANANA11/23/0211/23/02Littlejohn & Co.PSC Group LLC(4)Provides information tech. services and144.0 144.0 (1) 169.0 NA NA NM NA Instruments, Inc.manufactures fixed position bar code scanners0.9xNANANMNA12/22/0001/08/01Metrologic Adaptive Optics Provides high speed industrial scanning19.0 19.0 (1) 20.0 NA NA NM NA Instruments, Inc.Associates Inc.(3)1.0xNANANMNA03/21/0004/03/00Zebra Technologies Comtec Information Systems Inc.Dvlp data processing, automatic identification88.7 88.4 57.7 10.7 9.9 9.6 19.0 Corp.and printing systems1.5x8.3x8.9x9.2x4.7xHigh$ 230.0 $ 268.0 6.4x16.2x22.2x28.0x8.5xMean84.2 89.2 2.2x11.1x16.6x20.7x5.4xMedian62.7 63.1 1.0x9.0x17.7x25.0x6.5xLow12.1 13.0 0.1x5.9x8.9x9.2x0.2xMgmt. Case at $19.00 per share(5)442.7$ 358.3$ $ 210.0 $ 30.2 $ 23.8 NA $ 186.4 1.7x11.9x15.1xNA2.4x

 

Premiums Paid Analysis

 

Premiums Paid Analysis(1)Source: Factset, Mergerstat September 5, 2006. (1) Limited to transactions involving 100% ownership acquired. Transactions Valued between $100M - $1,000M (Closed September 5, 2005 – Present) ClosePrice /Equity ValueEnt. ValuePremiumPremiumPremiumPremiumPremiumDateAcquirorTargetTarget Business DescriptionShare($mm)($mm)1 Day5 Day30 Day60 Day90 Day8/29/2006Viisage Technology, Inc.Identix, Inc.Designs and manufactures bio-metric scanning systems$ 6.67 $ 598.2 $ 577.7 15%28%36%49%39%8/4/2006Telepacific Communications CorpMpower Holding Corp.Provides telecommunications and Internet services1.92 175.9 181.3 3%15%31%56%59%8/3/2006Assa Abloy ABFargo Electronics, Inc.Manufactures desktops and other computer equipment25.50 326.2 288.9 57%55%53%35%26%8/2/2006Extensity, Inc.Systems Union Group PLCDevelops computer software solutions3.73 409.8 406.5 3%14%-84%-85%-85%7/12/2006Apollo Management LPSOURCECORP, Inc.Provides document managing services, including micro-graphic and electronic imaging25.00 389.8 446.1 -3%-3%-6%-4%14%7/7/2006Applied Materials, Inc.Applied Films Corp.Supplies thin film coated glass for liquid crystal displays28.50 447.4 411.9 24%36%46%36%36%7/6/2006JDA Software Group, Inc.Manugistics Group, Inc.Dvlp software products for synchronized SCM2.50 210.3 307.1 4%9%13%21%37%7/5/2006AttachmateWRQ, Inc.NetIQ Corp.Pvd e-business infrastructure mgmt software for Windows NT and Windows 2000 based systems12.20 484.5 440.6 14%8%10%-7%0%7/5/2006X-Rite, Inc.Amazys Holding AGDvlp color management solutions, including instrumentation, software and services63.79 201.4 174.3 3%11%9%9%7%7/3/2006Oracle Corp.Portal Software, Inc.Provides billing and revenue management solutions for communications and media companies4.90 211.7 187.2 17%16%46%105%115%7/1/2006Sprint Nextel Corp.UbiquiTel, Inc.Provides Sprint PCS digital communications services10.35 975.2 1,277.8 2%2%8%2%5%6/21/2006Micron Technology, Inc.Lexar Media, Inc.Dvlp digital film and connectivity products for the digital photography market9.46 782.4 794.7 33%34%16%14%19%6/7/2006General Electric Co.SBS Technologies, Inc.Designs and builds open architecture embedded computer products16.50 259.6 206.4 55%56%47%69%64%6/6/2006HG Investment Managers Ltd.Visma ASADevelops and publishes management software20.57 658.3 690.9 5%5%28%35%40%5/15/2006NBC Universal, Inc.iVillage, Inc.Provides services such as e-mail, message boards, and chat rooms8.50 618.3 562.4 7%1%8%0%15%5/11/2006Dassault Systemes SAMatrixOne, Inc.Develops collaborative product lifecycle management software solutions7.25 378.8 280.2 21%26%39%39%44%5/4/2006Tudor Investment Corp. / Prides Capital / Belfer MgmtPegasus Solutions, Inc.Provides transaction processing and electronic commerce services to the hotel industry9.50 197.6 245.5 15%20%13%6%-11%4/28/2006Microsemi Corp.Advanced Power Technology, Inc.Manufactures and markets high power, high voltage, high performance semiconductors13.87 153.3 151.8 46%49%85%86%94%4/25/2006Lawson Software, Inc.Intentia International ABDevelops e-business solutions3.82 621.2 588.4 93%110%125%66%65%4/21/2006Commander Communications Ltd.Volante Group Ltd.Provides information technology services1.09 109.3 101.6 31%35%65%4%3%

 

Premiums Paid Analysis(1)Source: Factset, Mergerstat September 5, 2006. (1) Limited to transactions involving 100% ownership acquired. Transactions Valued between $100M - $1,000M (Closed September 5, 2005 – Present) ClosePrice /Equity ValueEnt. ValuePremiumPremiumPremiumPremiumPremiumDateAcquirorTargetTarget Business DescriptionShare($mm)($mm)1 Day5 Day30 Day60 Day90 Day4/6/2006West Corp.Evoke Comms., Inc.Provides web and telephone conferencing services2.70 149.7 139.1 32%32%35%26%22%4/4/2006West Corp.Intrado, Inc.Provides operations support systems services to local exchange and wireless carriers26.00 464.0 464.0 13%14%16%39%58%3/31/2006Infor Global Solutions, Inc.Datastream Systems, Inc.Provides prepackaged software services10.26 205.1 155.1 17%19%23%23%42%3/30/2006SES Global SANew Skies Satellites HoldingsOperates as holding company with interest in satellite communications22.52 727.4 1,073.5 -4%-3%0%4%13%3/14/2006Golden Gate CapitalGEAC Computer Corp. Ltd.Provides software solutions11.10 958.8 771.3 27%25%18%10%27%3/10/2006Liberty Media Corp.Fun Technologies PLCDevelops gaming and exchange betting software6.10 107.8 72.7 23%30%-78%-80%-81%3/10/2006Silver Lake PartnersSERENA Software, Inc.Provides enterprise software change management solutions24.00 987.3 1,118.9 1%7%20%33%25%3/3/2006Global Healthcare Exchange LLCNeoforma, Inc.Provides e-commerce services to healthcare industry10.00 207.1 186.1 12%18%32%47%46%3/1/2006Gores Group / Tennenbaum CapitalEnterasys Networks, Inc.Dvlp standards based LAN and WAN connectivity hardware and software products13.92 380.4 311.6 32%30%31%51%98%2/15/2006International Business Machines Corp.Micromuse, Inc.Provides business assurance software solutions10.00 796.9 743.2 39%31%27%36%69%2/15/2006Electronic Arts, Inc.JAMDAT Mobile, Inc.Develops wireless gaming software for mobile devices27.00 670.8 673.6 21%14%45%10%-6%2/15/2006Rudolph Technologies, Inc.August Technology Corp.Pvd critical process enhancing information to microelectronic device manufacturers10.50 192.1 186.6 35%15%11%30%12%2/13/2006Videsh Sanchar Nigam Ltd.Teleglobe Int'l Holdings Ltd.Provides telephone and other telecommunications services4.50 176.3 242.2 22%34%80%45%16%2/10/2006Nokia OyjIntellisync Corp.Develops and provides mobile application software products and related services5.25 353.1 391.4 -5%1%14%41%97%2/10/2006Investcorp Bank BSCCCC Information Services GroupSupplies advanced software and communications systems to the automotive claims industry26.50 439.1 578.0 4%4%15%13%12%2/9/2006Liberty Media Corp.Provide Commerce, Inc.Provides online shopping services for perishable goods33.75 404.9 400.7 12%17%48%30%37%1/12/2006Secure Computing Corp.CyberGuard Corp.Develops software and manufactures hardware for real-time computers8.82 271.1 259.7 12%13%45%37%18%1/10/2006Symantec Corp.BindView DevelopmentProvides security management software solutions4.00 195.0 166.2 14%14%31%46%27%1/6/2006Per-Se Technologies, Inc.NDCHealth Corp.Provides transaction processing services and application systems19.59 709.2 961.4 10%9%7%19%23%12/30/2005EMC Corp.Captiva Software Corp.Provides management solutions22.25 298.2 278.3 25%32%11%37%52%

 

Premiums Paid Analysis(1) Source: Factset, Mergerstat September 5, 2006. (1) Limited to transactions involving 100% ownership acquired. Meteor Enterprise Value reflects $35 million of net proceeds from sale of AOA. Transactions Valued between $100M - $1,000M (Closed September 5, 2005 – Present) ClosePrice /Equity ValueEnt. ValuePremiumPremiumPremiumPremiumPremiumDateAcquirorTargetTarget Business DescriptionShare($mm)($mm)1 Day5 Day30 Day60 Day90 Day12/29/2005Autonomy Corp. PLCVerity, Inc.Provides business search and process management software13.50 483.4 377.3 30%35%27%39%51%12/19/2005Hewlett-Packard Co.Peregrine Systems, Inc.Dvlp integrated suite of applications that automate the management of complex infrastructures26.08 393.2 363.8 37%35%35%14%17%11/23/2005The Carlyle Group LLCSS&C Technologies, Inc.Develops investment and financial management software37.25 856.7 833.7 13%11%24%39%61%11/14/2005Access Co., Ltd.PalmSource, Inc.Develops and licenses platform software18.50 311.7 295.2 83%76%137%95%103%11/11/2005Elisa OyjSaunalahti Group OyjProvides Internet services3.31 453.9 504.4 33%33%37%53%65%11/4/2005Vector Capital LLCRegister.com, Inc.Provides Internet domain registration services7.81 196.3 143.9 2%1%8%38%33%10/27/2005Brooks Automation, Inc.Helix Technology Corp.Makes cryogenic and vacuum equipment used by makers of semiconductors14.09 368.1 357.8 1%8%-38%-38%-43%10/25/2005Harris Corp.Leitch Technology Corp.Dvlp broadcast TV products, video servers, and telecommunications products11.42 447.0 426.9 39%40%35%23%57%10/24/2005EAS Group, Inc.Brooktrout, Inc.Manufactures, designs and markets computer hardware and software products13.05 166.4 151.7 38%39%17%32%36%10/21/2005BEA Systems, Inc.Plumtree Software, Inc.Develops, markets and sells corporate portal software and related services5.50 183.2 170.6 18%28%24%25%25%10/3/2005Schneider Electric SABEI Technologies, Inc.Manufactures electronic sensors and engineered subsystems35.00 524.2 547.3 20%15%28%53%43%9/30/2005The News Corp. Ltd.Intermix Media, Inc.Provides internet marketing and entertainment services12.00 418.7 414.0 12%24%91%135%43%9/29/2005Cerberus Capital Management LPEpiphany, Inc.Develops customer relationship software4.20 325.7 326.6 8%11%20%30%19%9/23/2005Concerto Software, Inc.Aspect CommunicationsProvides enterprise communication solutions and services11.60 715.6 610.5 4%1%32%18%9%9/16/2005ScanSoft, Inc.Nuance CommunicationsDvlp a voice interface platform software enabling Internet access from a telephone6.01 217.2 147.7 97%111%66%34%44%Mean22%25%28%30%32%Median17%18%27%33%33%Mgmt. Case at $19.00 per share$19.00$442.67$358.3516%15%29%27%9%