Venture Partners AS

1. Venture Partners AS Leveraging the Nordic Internet Edge Presentation BI, MBA-class 18 February, 2000

2. Presentation highlights • The Nordic and European Internet Space is an attractive investment opportunity due to the advanced stage of the Nordic countries and a strong European growth perspective. • Venture Partners Management has built a strong franchise for investing in Internet and related technologies and is well positioned for a third fund • Venture Capital is by definition risky, but risks can be mitigated in several ways

3. Presentation highlights • The Nordic and European Internet Space is an attractive investment opportunity due to the advanced stage of the Nordic countries and a strong European growth perspective. • Venture Partners Management has built a strong franchise for investing in Internet and related technologies and is well positioned for a third fund • Venture Capital is by definition risky, but risks can be mitigated in several ways

4. Information Tech. Telecom Internet Media Investment Focus VPM Focus

5. Technology is becoming an important part of the total economy • Today the technology sector within the US economy accounts for roughly 15% of the total economy. • At the present growth rate, technology will account for over 51% of the economy by 2008. • Year after year, technology companies grow at about 15% while the rest of the economy plods along at 2-3% real growth. • Out of the total technology growth, Internet-related businesses are growing at about 80 % per year

6. Technology is the Fastest Growing Component of U.S. GDP IT Growth GDP Growth Source: BEA

7. The US Internet economy Internet InternetRevenues Jobs Internet Infrastructure $115.0 Billion 372,462Provides products that createor enable an IP network infrastructure Internet Applications $56.3 Billion 230,629Creates applications that enablebusiness over an IP network Internet Intermediary $58.2 Billion 252,473Facilitates the meeting ofbuyers and sellers online Internet Commerce $101.9 Billion 481,990Sells products over the Internet Internet Economy Totals $301.4 Billion 1,203,799 It took the automotive and energy industry 100 years to match similar figures Source: Study sponsored by Cisco Systems and conducted by the University of Texas (1999 estimate)

8. The Internet - is affecting all of us Andy Grove, Chairman of Intel, said in 1999. In five years’time, all companies will be Internet companies — or theywon’t be companies.

9. US Internet companies attract strong values

10. US Internet companies vs. Norwegian Blue Chips

11. 11 of the 15 most valuable US Internet stocks are less than 5 years old

12. Active Venture capital funding has facilitated rapid growth

13. Venture capital - the chief source of funding for Internet businesses Investments in Internet Related companies Average Deal size of Internet Related Investments Source: PriceWaterhouseCoopers, September 1999

14. Where Have We Been? June 1995 - December 1999 • Netscape Navigator shipped - 6/95 • http://www: • Exploration • Experimentation • Business Model: • Consumer traffic driven • Advertising CPM’s

15. Where Are We Now? 1999/2000 • http://www. • Dis-intermediation • Business re-engineering • New businesses • Business Models: • % of transaction • service usage • auction-based everything • “free”

16. Where Are We Going? 2000- 2002 Estimate • Everything is “auctionable” • Consolidation of: • Customers as pooled buying power • B2B procurement verticals • Infrastructure Investments • mobile, wireless • broadband cable • DSL • Enablers • new ASP software services

17. Segments that will drive Internet growth VPM III Focus Business Reengineering/Services/Verticals Software & Services Content/Aggregation Infrastructure Retail/Commerce Revenue Source: Morgan Stanley Technology Research 1998 1999 2000 2001 2002 Time European Average – 3 years lag behind US

18. European Internet Growth Internet growth highest outside US The European market will triple in 5 years

19. Nordic Countries are ahead • The Nordic countries are ahead of Europe • Nordic user rates in the rest of W Europe will result in 130 million users

20. Internet Access on Any Device - A special Nordic Stronghold Internet Enabled Wireless Phones Personal Digital Assistants Worldwide Shipments (millions) 1998E 1999E 2000E 7.4 10.7 14.8 Source: IDC MP3 Players 1.3 million units shipped - 1999 Source: Cahners, IDC Personal Computers Worldwide Installed Base (millions) 1998E 1999E 2000E 295 340 390 Source: IDC, TWP estimates 22

21. US experience vs. European opportunities • Europe is catching up • Europe is 2 - 3 years behind the US, but the gap is narrowing • Although the Internet is a global medium, localisation is essential • Heavy marketing spend predicted as Internet brands go mass market • Barriers to entry are low, and there are abundant start up opportunities • The European Venture Capital market is beefing up Nordic start ups are well positioned • The Nordic markets are ahead in terms of Internet, PC and mobile penetration • Scandinavia is functioning as a test market • Viable Nordic business concepts are being exported to Europe & the US • There is plenty of activity among the Nordic entrepreneurs The major European Internet brands will be established over the next 2 -3 years. Nordic players are in a strong position to take a large share

22. Presentation highlights • The Nordic and European Internet Space is an attractive investment opportunity due to the advanced stage of the Nordic countries and a strong European growth perspective. • Venture Partners Management has built a strong franchise for investing in Internet and related technologies and is well positioned for a third fund • Venture Capital is by definition risky, but risks can be mitigated in several ways

23. March 1994 Aug 1996 Feb 1997 Aug 1998 Sep 1999 Dec 1999 Venture Partners founded. First start up (HUGIN) initiated and launched 1995 Internet is seen as a market with significant upside. Work is initiated to establish an Internet Venture Fund VPM I established with a funding of NOK 51 Mill. VPM I is fully invested. VPM II is raised with a funding NOK 71 million VPM LTS raises NOK 40 million from VPM I investors to follow up investment (pre IPO) in Stepstone. VPM II is fully invested. VPM III is established with a funding of EURO 70 million. History

24. Focus on industries we understand, in people we believe in and on entities that have a high international potential scaleable concepts and clear competitive advantages. Exercise active ownership through significant share-holding in investment targets and deep involvement in management in critical phases. Prioritise activities related to financial and strategic partnerships as well as exit opportunities with an objective of creating the highest possible return on the investment. Follow Silicon Valley Venture Capital model: Board representation, involvement in fund raising and recruiting, pursuit of M& A activities and seeking VC investors for later financing rounds. VP principles Focus Hands on ownership Value creationperspective Pure VC approach

25. The VPM III “Cluster” Venture Partners A staff with both Internet and start up experience and a combination of skills necessary to run an outstanding Venture Capital entity Advisory Board Key experts in the fieldof technology and Internetthat advises on investmentsand follow up Venture Advisers Consultants with 20 years combined experience in the software / media industry International Partners Network of Venture andtechnology partners in Europen and the US that Venture Partners works with on different occasions. Entrepreneur Network Entrepreneurs in - and outside of portfolio companies that make time available for VPM and related companies

26. Bilguiden.no Jobshop.no Reisefeber.com Initiated merger between Bilguiden and Interbil. Changed management and structure Initiated and negotiated merger with Bilweb in Sweden Active in preparing on-going Fund Raising Initiated acquisition of Danish and Swedish players Initiated strategy work leading to a Pan European approach Brought in Geo Capital, Investor AB and Index Ventures in second round financing Negotiated terms Initiated the investment pro actively through dialogue with SOL Got new management structure in place Negotiated deal with Lastminute.com Negotiates potential acquisitions Hands on approach Some examples

27. Financial performance Venture Partners Multimedia I (Invested 0397 - 0798) 537 IRR 155% IRR 66% 51 Committed TotaL Value Note: IRR after carried interest 136% (before tax) Unrealized value estimates at latest transaction levels Value estimates are not discounted for junior securities held in venture backed rounds

28. STEPSTONE Track Record Percent return LAST MINUTE 3000 - 5000 BILGUIDEN FILEFLOW 50 -300 SEVEN MOUNTAINS MASS MARKET GURU SOFTWARE PORT AUTHORITY N.A. SKIINFO SU-SOFT HUGIN REISEFEBER Under Performers On the Threshold Funded for growth Gorillas MIKOS SALGSNETT Fund 1 Fund 2

29. The Stepstone Story Apr.99-Oct. 99 New management team, additional USD 15 mill. invested, Limited Partners in VPM I invest USD 5 million through VPM LTS., Morgan Stanley signed up as advisor Oct. 98 - March 99 VCs invited into company, USD 17 mill closed with selected VCs June-Aug. 98 German acquisition closed, European strategy defined Dec 97.-June 98 2. Round of financing (USD 2 mill) Aggressive TV and internet advertising throughout Scandinavia, June-Sept 97 Acquisitions in Sweden and Den-mark. Rapid organic growth and roll-out of unified product May 97 Aggressive building of telesales organisation in Norway March 97 VPM I acquires 50 percent of Jobshop for Prising: NOK 8 mill. (USD 1 mill)

30. Presentation highlights • The Nordic and European Internet Space is an attractive investment opportunity due to the advanced stage of the Nordic countries and a strong European growth perspective. • Venture Partners Management has built a strong franchise for investing in Internet and related technologies and is well positioned for a third fund • Venture Capital is by definition risky, but risks can be mitigated in several ways

31. Risk Mitigation - investor perspective Typical Asset allocation for a professional investor

32. Risk Mitigation alternatives from the venture capital perspective Diversification related to selection of investment targets • Sectors - Internet => IT, Telecom • Geography/Region - Norway => Nordic • Stage - Seed => Later Stage DANGER: ILLUSIVE RISK REDUCTIONS

33. Later stage not necessarily less risky than seed Earlystage Expan- sion Listed Seed IPO • In theory risk is reduced the longer the company has lived • In a booming market with high valuations, it might • be more risky to invest in a Pre-IPO candidate or in a • listed company than in selection of seed targets.

34. Invest in superior management teams Invest in companies with a huge market potential Establish milestones Make use of advanced equity instruments Team up with partners The quality of the management is by far the most important element related to risk assessment As long as the potential is large enough, and the business model is scalable, it is sufficient to have one “winner” to make a handsome return Establish milestones related to technology, customers, partners or sales and if possible distribute equity in tranches Use of preferred shares, convertible loans and other equity instruments may give the investor protection and a reduced down side in certain down side scenarios The chances of success can be significantly increased by putting together a group of investors contributing with strategic, financial and networking skills How do we then invest ?

35. Speed is the name of the game Act immediately on underperformance Put on high calibre management resources Stay hands on and set clear targets as investor Nothing puts the strategy in jeopardy as much as the lack of speed. Use external resources to avoid timelags in recruiting, M&A activities and so on. Problems will grow if unattended. If budgets are not reached, they will not be fulfilled without prior action. Furnish the company with competent managers. As a company grows internationally, new skills and experience has to be added. Stay hands on and actively follow up the portfolio companies. Define a clear and ambitious strategy. Stay in close personal contact with top management Then what do we do when we have invested ?

36. My message • There are huge opportunities within Internet and technology • Building a new business is great fun • It is a great pity that you bright heads are planning to work for established dull companies • Do you want to miss the train ? • We need you in our start ups’ • Join us !!!