Background Investment Philosophy Management Team Evaluation Process Investment Strategy Three Types of Investment Changing Role of Today's VC

Background Founded in 1997, Crystal Ventures has grown into a family of funds with international offices in North America and Asia that facilitate the pervasive growth and development of worldwide innovation - with special concentration on North America and Asia. We see technological innovation as a global event, but with strong localized flavor imperative to its maturation. Crystal partners with companies that support trans-Pacific synergetic operations with proven technology and products, market potential, exemplary management teams, and unique resources particular to Silicon Valley, Taiwan, Singapore, and mainland China. Crystal will lead, co-lead or take a membership role in an investing syndicate. Most of our deals range from $1.0 to $5.0 million. We assign two partners to every deal as well as take a board seat on all portfolio investments, ensuring that we play an impacting role in the direction of the companies we support. Investment Philosophy Crystal invests in experienced and talented management teams that are developing innovative core technologies in a growing market. We are interested in technologies that disrupt the way humans think, behave and conduct business. Crystal will lead, co-lead or take a membership role in an investing syndicate. The preferred initial investment ranges from $1.0 million to $5.0 million. Crystal partners generally hold a board seat, and participate actively as observers in other cases. An investment by the Crystal Ventures family of funds gives portfolio companies access to its extensive worldwide network of financial, investment banking, distribution, manufacturing, and funding relationships. Management Team Joseph Tzeng, Managing Director Joseph Tzeng is Managing Director of Crystal Ventures. Mr. Tzeng has been an active participant in the information and computer industries for the last 15 years. Prior to Crystal, he was involved with the development and growth of several successful technology-based companies including those involving hardware manufacturing and distribution, as well as software development and services. Mr. Tzeng worked actively on the boards of Cobalt Networks, Sina, BabyCenter, and Elemental Software, and currently is involved closely with Informative, Synacor, exavio, Powerbridge, and ejasent. Mr. Tzeng believes that the Internet, wireless, broadband, and their related and ensuing technologies have put us at the dawn of a global revolution that will impact the way people enjoy their lives and conduct business. He and the partners at Crystal see tremendous opportunity in the next generation architecture, enabling technologies, and the variety of vertical, enterprise and lifestyle-related content and applications that are coming to life. Mr. Tzeng believes the long-term success of these companies relies on the pairing of a strategic global perspective with a deep understanding of local practices and content - regardless of individual location, culture or line of business. A recognized expert on the trends in computer and information technologies as well as Asian and global investment trends, Mr. Tzeng is frequently invited to speak at events ranging from International Business Forum's Venture Capital Investing Conference to the World Affairs Council. He is frequently interviewed by international news organizations and has appeared in Asian Venture Capital Journal, BusinessWeek, Dow Jones, the Economist, Fortune, Venture Capital Journal, and the Wall Street Journal. Mr. Tzeng received his undergraduate degree in Computer Science and Electronics Engineering from National Chiao-Tung University, Taiwan, and holds an M.S. in Computer Engineering and Information Sciences from Case Western Reserve University, USA. Daniel Kellogg, Managing Director Mr. Kellogg has been active in new ventures and new product and market development for the past 29 years. In addition to his technical background, Mr. Kellogg brings specific experience in venture capital investing and in financial advisory/investment banking services. Mr. Kellogg deals intensively with the funds' structuring and re-engineering issues. Mr. Kellogg's talents lie in the ability to identify and evaluate strategic opportunities within markets through the application of technology leveraged with marketing and management. He has served either as a member of, or as an observer to, the Board of Directors for a number of firms, including Astoria Software, Employon, General Internet, NetGenics, RF Solutions and RoweCom. Prior to forming the Predecessor Fund, Mr. Kellogg operated a financial advisory/investment-banking firm, Kellogg Associates, focused on providing services to smaller and early stage clients. Before forming his own financial advisory/investment banking firm, Mr. Kellogg was an investing principal of a Cleveland-based bank-operated venture fund, National City Capital Corporation. From 1983 through 1989 Mr. Kellogg participated in the start-up of three Silicon Valley firms involved in various markets including medical electronics (Nelcor, Inc.), gallium arsenide integrated circuits (Pacific Monolithics, Inc.) and electronic tools for the construction industry (Wedge Innovations, Inc.). Prior to this, Mr. Kellogg worked for approximately ten years with The Procter and Gamble Company in various aspects of national and international technical brand management and engineering. Mr. Kellogg has an undergraduate degree in Chemical Engineering from the University of Cincinnati and an MBA from Stanford University. John Hsin, Venture Partner John Hsin is a Venture Partner based in Asia assisting with Crystal's investment initiatives in the Greater China region and Singapore. He brings to Crystal a combination of experiences in start-up operations, venture capital, and investment banking. Mr. Hsin has a B.S. in Physics from Vassar College, a B.E. in Engineering from Dartmouth College, and an MBA from Harvard University. Cameron Rubino, Chief Financial Officer Cameron Rubino is the Chief Financial Officer. He is responsible for the financial, administrative, back-office, and control functions of the various Crystal entities. In addition, Mr. Rubino facilitates the audit, tax, and reporting work within Crystal, provides financial analysis for the other Principals, and is involved in reviewing the investment documentation, including terms and conditions. Prior to joining Crystal, Mr. Rubino worked as an auditor at Andersen with a client-base in a wide range of industries. He is also a member of VCBC and PECFOA (organizations for finance professionals in the venture capital industry), American Institute of Certified Public Accountants, and Ohio Society of Certified Public Accountants. Mr. Rubino obtained his CPA license in the state of Ohio and graduated Summa Cum Laude with a B.S. in accounting from the University of Akron. Evaluation Process Our Evaluation Process Crystal focuses on three vital areas before making an investment decision: the company's product and technology, the management team, and the market potential. 1. Product and Technology Crystal invests in products and technologies that are unique and disruptive to our way of doing business - so much so that they may be considered today's water sources, even by their competitors. 2. People The management team must possess a solid balance between entrepreneurial and professional management skills. They should be able, energetic, and have the burning desire to succeed in today's global marketplace. In addition to interviewing the team, Crystal conducts a reference check on each key member of the team to gather a broader understanding of the entrepreneur's professional experience, character, strengths, weaknesses, and track record. 3. Market Crystal must determine that a significant market opportunity exists before placing any investment. Once the market opportunity is determined, it must be clear that the company can own and sustain market leadership. Whether the target market currently exists or is potential, it must be significant and expansive. Crystal invests time in companies before we make a financial investment. This ensures greater success and makes our time together more productive once a company joins our portfolio. When we are convinced that a potential company possesses the three vital elements for success - technology, people and market - then we conduct a thorough review of the management team, product and technology road map, sales and marketing strategy, competitive analysis, intellectual property, and other financial and legal concerns. During the pre-investment research process we come to understand all aspects of the company, and we begin to build mutual trust with the team and Board. Based on insights and knowledge during and after this process, we are able to ask the right questions and continue to render the proper help from the Board level post-investment, allowing us to be more helpful and understanding for the entire life of the investment. Investment Strategy Crystal Ventures sees global opportunity on the horizon and is capitalizing on a multi-regional market where even the smallest private companies must account for cross-border business practices. Recognizing that the skills required of venture capitalists are evolving to serve global markets, Crystal takes a highly differentiated approach to investing. We focus on building businesses for long-term success, emphasize Asian and trans-Pacific investments, and approach investments by stage and investment type. We leverage our partners' diverse skills to address today's changing business environment based on global diversification of markets and opportunities. Geography Crystal anticipates investing approximately 60 to 70 percent of our funds in North America and 30 to 40 percent in Asia, with most if not all of these investments having global components regardless of headquarters. Crystal is interested in global companies with multi-region synergy, or regional companies with global and synergetic operations covering Silicon Valley, Taiwan, Southeast Asia, and mainland China. Industry Approach: Technology Crystal sees the development of technologies in terms of three specific layers. The first layer, underlying technologies, create and expand the core infrastructure necessary to support the next generation of commercial development. Enabling technologies leverage the strengths and investments made in underlying technologies and enable the promising infrastructure to support development of truly useful and profitable business models. Applications and content are built on the top layer and leverage enabling technologies to create business operations that develop into profitable and significant consumer-driven and business-oriented markets. We believe that the innovation occurring across these three layers of technology presents a never-ending cycle of opportunity. Our partners have successfully invested in each of these areas, and we will continue to focus our attention on initiatives that map to these layers with primary focus on four industrial segments: wireless, broadband, enterprise software, and vertical content and applications. Layer Model for Technology Investing Industry Approach: Three Types of Investments Crystal invests in early, development and late-stage technology businesses as well as companies that have a high potential for exceptional capital appreciation - regardless of whether they are public or private. We make three types of investments: TYPE I: Disruptive Innovation - Ten to 15 percent of our investments will be in early stage, next-generation, disruptive technology companies. Examples of such investments include Infinera and Cobalt Networks. TYPE II: Enabling Technology - Forty to 45 percent of our investments will be in companies that create enabling technologies based on existing infrastructure for specific solutions and applications. Similar companies within our portfolio include exavio, LGC Wireless, and Synacor. TYPE III: Trans-Pacific Reengineering Synergetic Operations - Fifty to 55 percent of our investments will focus on trans-Pacific companies that require some component the "Three Rs": restarting, reengineering or re-launching. A majority of these companies will be mid- or late- stage investments, although some early stage deals may also fall into this category. Most companies of this nature will have achieved $5 to $15 million in revenue, however, for a variety of reasons are seeking cash infusion for continued growth. These companies may be looking to sustain a new level of financial and operational health through recapitalization, restructuring business models or operating plans, rebuilding teams, or pursuing new channels through a new marketing and sales approach. LGC Wireless and Synacor are examples of Type III investments. Changing Role of Today's VC Crystal believes that venture capitalists today must assume a higher level of accountability for the success of their portfolios, and their skills must evolve to serve a global market. Our partners leverage their diverse skills to address today's changing business ecosystem based on the global diversification of markets and opportunities. Crystal takes an active, long-term approach to each of our investments. Our partners provide entrepreneurs with the value-added support and guidance they need to grow and nurture their companies into mature organizations - from networking, building teams and creating viable business channels, to restructuring organizations, creating deal-flow pipelines and even closing deals. We leverage our bi-coastal and multi-regional network to create global opportunities for every company within our portfolio.

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