Source: MorningStar. GROWTH RATES Sales EBITDA EPS Historical 1-year 88.0% 77.5% - 2-year CAGR Estimated 1-year 32.9% 28.1% 71.

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1 FACEBOOK (FB) Sector: Information Technolgy Price: $20.04 (as of 08/02/2012) Overview Company Name FACEBOOK Shares outstanding 2,228,855, Ticker FB Enterprise value $34,872,266,382.9 Fiscal year ending 12/31/2011 EBITDA (MM) $1,048.0 Marginal tax rate 35% LTM EPS $0.16 % of 52-week high 52.4% 2-yr EPS CAGR (%) 48.3% Dividend NA S&P500 credit rating NA Market capitalization $44,666,266,382.9 Beta NA Company Profile Facebook is the largest social media company with almost 1 billion monthly active users globally and has $1.1 billions dollars in revenues as of second quarter The company went public in May 2012 and caught a lot of public s attention, and was considered as the biggest IPO of the year. Most of the company s profit comes advertising by exploiting users information as well as payments from online services (especially online games). Currently, Facebook is trying to expand and improve its mobile platform in order to have advertisement built in due to substantial growth in mobile segment. Although our comparable valuation for Facebook is significantly lower than its competitors, we suggest holding Facebook for now and waiting its growth and development in the coming months. Stock Performance Source: MorningStar TRADING MULTIPLES LTM NFY NFY+1 6/30/ E 2013E EV/Sales 8.1x 7.1x 5.5x Metric $4,327.0 $4,931.0 $6,364.0 EV/EBITDA 33.3x 13.1x 9.8x Metric $1,048.0 $2,663.0 $3,554.0 EV/EBIT 58.2x 17.0x 12.8x Metric $599.0 $2,055.0 $2,725.0 P/E 125.5x 40.9x 31.8x Metric $0.16 $0.49 $0.63 LTM RETURN ON INVESTMENT RATIOS Return on Invested Capital 24.4% Return on Equity 4.6% Return on Assets 3.9% Implied Annual Dividend Per Share NA GROWTH RATES Sales EBITDA EPS Historical 1-year 88.0% 77.5% - 2-year CAGR Estimated 1-year 32.9% 28.1% 71.1%

2 2-year CAGR 31.0% 30.7% 48.3% REPORTED INCOME STATEMENT (in million dollars, except per share data) Fiscal Year Ending LTM 2010A 2011A 6/30/12 Sales $1,974.0 $3,711.0 $4,327.0 COGS ,127.0 Gross Profit $1,481.0 $2,851.0 $3,200.0 SG&A ,511.0 Other Expense / (Income) ,090.0 EBIT $1,032.0 $1,756.0 $599.0 Other Expense / (Income) $2.0 $19.0 Interest Expense Pre-tax Income $1,008.0 $1,695.0 $550.0 Income Taxes (62.0) Noncontrolling Interest Preferred Dividends Net Income $606.0 $1,000.0 $612.0 Less: Net income attributable to participating securities $234.0 $332.0 $193.0 Net income attributable to Class A and Class B common stockholders $372.0 $668.0 $419.0 Effective Tax Rate 39.9% 41.0% (11.3%) Weighted Avg. Diluted , , Shares Diluted EPS NA $0.29 $0.16 BALANCE SHEET DATA (in million dollars, except per share data) 2011A 6/30/12 Cash and Cash Equivalents $3,908.0 $10,188.0 Accounts Receivable Inventories - - Prepaids and Other Current Assets Income tax refundable Total Current Assets $4,604.0 $11,967.0 Property, Plant and Equipment, net 1, ,105.0 Goodwill and Intangible Assets Other Assets Total Assets $6,331.0 $14,928.0 Accounts Payable Accrued Liabilities

3 Short-term Debt - - Deferred revenue and deposits Current portion of capital lease obligations Other Current Liabilities Total Current Liabilities $899.0 $1,034.0 Capital lease obligations,net Other Long-Term Liabilities Total Liabilities $1,432.0 $1,619.0 Noncontrolling Interest - - Preferred Stock - - Shareholders' Equity 4, ,309.0 Total Liabilities and Equity $6,331.0 $14,928.0 COMPANY NAME TICKER MARKET CAP STOCK PRICE (AS OF SYMBOL 08/02/2012) Facebook FB 44,666,266, $20.04 Google Inc. GOOG 215,404,067, $ Yahoo! Inc. YHOO 19,174,444, $15.75 Microsoft Corp. MSFT 244,711,346, $29.19 LinkedIn LNKD 10,470,468, $93.51 IAC/InterActiveCorp IACI 4,697,914, $51.70 AOL Inc. AOL 3,075,986, $31.50 Zynga ZNGA 1,987,673, $2.70 Apple Inc. AAPL 569,758,888, $ Yelp YELP 1,437,473, $22.00 Comparables Multiples Current Enterprise Value / LTM Share Enterprise LTM 2012E 2013 LTM 2012E 2013 LTM 2012E 2013 EBITDA Margin Total Debt / EBITDA LTM 2012E 2013 mpany Price Value Sales Sales Sales EBITDA EBITDA EBITDA EBIT EBIT EBIT EPS EPS EPS Price / Facebook $20.04 $34,872,266, x 7.1x 5.5x 33.3x 13.1x 9.8x 58.2x 17.0x 12.8x 24% 0.4.x 125.5x 40.9x 31.8x Tier I: Large-Cap Apple Inc. $ Google Inc. $ Microsoft Corp. $29.19 $542,104,888,997 $175,269,067,702 $192,384,346, x 3.3x NA 9.7x 8.8x NA 10.2x 9.4x NA 38% NA 14.3x 13.2x NA 4.1x 4.1x 3.2x 11.1x 9.0x 7.6x 12.8x 10.5x 8.9x 39% 0.2.x 20.1x 14.8x 12.7x 2.6x 2.5x 2.3x 7.6x 6.5x 5.4x 8.7x 7.2x 6.0x 34% 0.4.x 11.8x 10.6x 9.2x Mean 3.4x 3.3x 2.8x 9.5x 8.1x 6.5x 10.6x 9.0x 7.4x 37% 0.3x 15.4x 12.9x 11.0x Median 3.6x 3.3x 2.8x 9.7x 8.8x 6.5x 10.2x 9.4x 7.4x 38% 0.3x 14.3x 13.2x 11.0x Tier II: Mid-Cap Yahoo! Inc. $15.75 $18,203,152, x 4.1x 4.0x 12.8x 12.2x 11.2x 23.0x 23.5x 20.4x 29% 0.6.x 17.7x 15.3x 13.5x LinkedIn $93.51 $9,853,331, x 10.6x 7.1x 102.1x 51.1x 29.7x 254.3x 93.8x 45.4x 13% NA 639.7x 148.4x 71.4x

4 C/InterActive rp $51.70 $3,881,645, x 1.4x 1.3x 11.2x 7.9x 6.6x 14.8x 10.4x 8.8x 14% 0.2.x 20.1x 18.5x 14.6x ean 6.3x 5.4x 4.1x 42.0x 23.7x 15.8x 97.4x 42.6x 24.9x 19% 0.4x 225.8x 60.7x 33.1x edian 3.7x 4.1x 4.0x 12.8x 12.2x 11.2x 23.0x 23.5x 20.4x 14% 0.4x 20.1x 18.5x 14.6x Tier III: Small-Cap AOL Inc. $31.50 $1,670,086, x 0.8x 0.8x -2.8x 4.4x 7.0x -2.1x 1.4x 9.9x -27% -0.1.x -5.1x 2.8x 25.8x Zynga $2.70 $870,729, x 0.7x 0.7x -1.8x 4.0x 3.5x -1.5x 17.1x 7.9x -37% 8.0.x -3.7x 38.6x 24.5x Yelp $22.00 $1,314,860, x 9.7x 6.8x -71.8x x 87.7x -55.2x -82.2x 328.7x -17% 9.0.x -75.2x -73.3x x Mean 4.6x 3.7x 2.8x -25.5x x 32.7x -19.6x -21.2x 115.5x -27% 5.6x -28.0x -10.7x x Median 0.8x 0.8x 0.8x -2.8x 4.0x 7.0x -2.1x 1.4x 9.9x -27% 8.0x -5.1x 2.8x 24.5x Overall Mean 4.8x 4.1x 3.3x 8.7x -37.2x 19.8x 29.5x 10.1x 54.5x 9% 2.6x 71.1x 21.0x -70.2x Median 3.6x 3.3x 2.8x 9.7x 7.9x 7.3x 10.2x 10.4x 9.4x 14% 0.4x 14.3x 14.8x 14.0x High 13.6x 10.6x 7.1x 102.1x 51.1x 87.7x x 328.7x 39% 9.0x 639.7x x x x Low 0.7x 0.7x 0.7x -71.8x x 3.5x -55.2x -82.2x 6.0x -37% -0.1x -75.2x -73.3x x Comparables Multiples Return on Investment LTM Leverage Ratios LTM Coverage Ratios Implied Debt / Debt / Net Debt / EBITDA / EBITDA EBIT / ROIC ROE ROA Div. Yield Tot. Cap. EBITDA EBITDA Int. Exp. - Cpx/ Int. Int. Exp. Company FYE (%) (%) (%) (%) (%) (x) (x) (x) (x) (x) Facebook Dec-31 24% 5% 4% NA 3% 0.4x -9.7x 21.4x -2.8x 12.2x Tier I: Large-Cap Apple Inc. Sep-30 79% 43% 29% 2% 0% 0.0x -0.5x NA NA NA Google Inc. Dec-31 66% 17% 13% NA 4% 0.2x -2.7x 298.7x 241.9x 257.7x Microsoft Corp. Jun % 32% 17% 3% 14% 0.4x -2.5x 1.1x 1.0x 1.0x Mean % 30.39% 19.72% 2.24% 6.10% Median 78.67% 31.65% 17.32% 2.24% 4.41% Tier II: Mid-Cap Yahoo! Inc. Dec-31 7% 8% 7% NA 7% 0.6x -1.3x NA NA NA LinkedIn Dec-31 36% 2% 2% NA 0% 0.0x -6.4x NA NA NA IAC/InterActiveCorp Dec-31 24% 12% 7% 2% 4% 0.2x -2.5x 71.0x 62.7x 53.6x Mean 22.34% 7.68% 5.20% 1.86% 3.55% Median 23.77% 8.48% 6.72% 1.86% 3.95% Tier III: Small-Cap AOL Inc. Dec-31-45% -22% -18% NA 2% -0.1x NA NA NA NA Zynga Dec % -30% -21% NA 5% -0.2x NA 153.3x NA NA Yelp Dec % -41% -24% NA NA NA NA NA NA NA Mean % % % NA 3.52% NA NA NA

5 Median % % % NA 3.52% NA NA NA Overall Mean 35.79% 2.27% 1.30% 2.11% 4.50% Median 36.29% 8.48% 6.72% 1.86% 4.18% High % 42.61% 28.74% 2.74% 13.90% Low % % % 1.74% 0.00% Market Valuation Comparables Multiples LTM Financial Statistics LTM Profitability Margins Growth Rates Gross Net Sales EBITDA EPS Equity Gross Net Profit EBITD EBIT Income Hist. Est. Hist. Est. Hist. Est. A Company Value Profit EBITDA EBIT Income (%) (%) (%) (%) 1-year 1-year 1-year 1-year 1-year 1-year FB $44,666,266,383 $3,200 $1,048 $599 $ % 24.22% 13.84% 9.68% 87.99% 32.88% 77.54% 28.09% 0.00% 71.06% Tier I: Large-Cap AAPL $569,758,888,997 $65,641 $55,846 $53,007 $40, % 37.53% 35.62% 26.97% 58.15% 37.20% 18.31% 49.76% % 90.77% GOOG 215,404,067,702 $27,279 15,832 13,656 10, % 38.53% 31.64% 26.97% 29.28% 12.52% 19.67% 37.86% 16.89% 38.29% MSFT 244,711,346,024 $56,193 25,164 25,164 21, % 34.13% 30.11% 28.49% 8.49% 7.29% 59.39% 61.34% 7.67% 6.31% Mean 56.92% 36.73% 32.46% 27.48% 31.97% 19.00% 32.46% 49.66% 68.08% 45.12% Median 55.89% 37.53% 31.64% 26.97% 29.28% 12.52% 19.67% 49.76% 16.89% 38.29% Tier II: Mid-Cap YHOO $19,174,444,475 3, , , % 28.52% 15.91% 21.29% % % -2.64% 0.95% % 24.05% LNKD 10,470,468, % 13.33% 5.35% 2.34% % 78.67% 76.21% % % % IACI 4,697,914,189 1, % 14.29% 10.78% 9.60% 25.82% 32.71% 63.44% 78.64% % 50.42% Mean 36.40% 18.71% 10.68% 11.08% 39.81% 33.36% 45.67% 86.51% % % Median 30.77% 14.29% 10.78% 9.60% 25.82% 32.71% 63.44% 78.64% % 50.42% Tier III: Small-Cap AOL $3,075,986, ( ) ( ) ( ) 72.52% % % % -8.88% -2.46% % 13.11% % % ZNGA 1,987,673, ( ) ( ) ( ) 29.04% % % % 90.82% 5.25% % % % % YELP 1,437,473, (18.308) (23.825) (24.121) 92.73% % % % 74.49% 63.29% 65.55% % NA -9.04% Mean 64.76% % % % 52.14% 22.03% % % % % Median 72.52% % % % 74.49% 5.25% % % % -9.04% Overall Mean 52.70% 9.40% 2.60% 2.57% 41.31% 24.80% 1.33% 19.54% % % Median 55.89% 14.29% 10.78% 9.60% 29.28% 12.52% 19.67% 37.86% -1.53% 38.29%

6 Valuation IMPLIED LESS: IMPLIED FULLY IMPLIED BITDA METRIC MULTIPLE RANGE ENTERPRISE VALUE NET DEBT EQUITY VALUE DILUTED SHARES (MM) (MM) (MM) (MM) SHARE PRICE TM (9794) (1830) (0.82) E (9794) E (9794) ET NCOME IMPLIED FULLY IMPLIED METRIC MULTIPLE RANGE EQUITY VALUE DILUTED SHARES SHARE PRICE (MM) TM E E ET NCOME (MM) IMPLIED PLUS IMPLIED FULLY IMPLIED METRIC MULTIPLE RANGE EQUITY VALUE NET DEBT ENTERPRISE VALUE DILUTED SHARES (MM) (MM) (MM) (MM) SHARE PRICE TM E E L-Stern Group. All Rights Reserved. The information contained herein is not represented or warranted to be accurate, correct, or complete. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission.