Monthly Business Update Sep 30, 2008

9-26-2008 Company Confidential Pg 1

Monthly Business Update Sep 30, 2008Monthly Business Update Sep 30, 2008


Indiv Publishing: New Sales Components Trend

$ 0 K

$ 50 K

$ 100 K

$ 150 K

$ 200 K

$ 250 K

$ 300 K

$ 350 K

Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

Walk-up Partners FL Paid

Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08

Partners $ 15 K $ 8 K $ 5 K $ 4 K $ 4 K $ 4 K $ 18 K $ 25 K $ 19 K $ 46 K $ 34 K $ 42 K $ 28 K

FL $ 31 K $ 31 K $ 48 K $ 113 K $ 65 K $ 34 K $ 97 K $ 110 K $ 65 K $ 61 K $ 64 K $ 86 K $ 87 K

Paid $ 167 K $ 105 K $ 147 K $ 127 K $ 17 K $ 9 K $ 171 K $ 67 K $ 44 K $ 49 K $ 41 K $ 50 K $ 54 K

Walk-up $ 27 K $ 31 K $ 34 K $ 33 K $ 81 K $ 65 K $ 42 K $ 32 K $ 33 K $ 33 K $ 49 K $ 116 K $ 60 K

Total $ 240 K $ 175 K $ 235 K $ 278 K $ 167 K $ 111 K $ 330 K $ 234 K $ 162 K $ 188 K $ 188 K $ 294 K $ 229 K


Indiv Publishing: New Sales Components Trend

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100%


Walk-up Partners FL Paid

Paid 62.7% 45.8% 10.4% 8.2% 52.0% 28.6% 27.4% 25.9% 22.0% 17.0% 23.7%

FL 20.3% 40.8% 38.8% 30.2% 29.6% 47.0% 40.4% 32.2% 33.8% 29.2% 37.8%

Partners 2.3% 1.4% 2.1% 3.3% 5.5% 10.7% 11.9% 24.5% 18.2% 14.3% 12.1%

Walk-up 14.6% 12.0% 48.6% 58.3% 12.9% 13.7% 20.3% 17.4% 25.9% 39.5% 26.4%



Publishing: Renewals

MTDPotential Renewal M'ships 674 Potential Renewal Dollars 150,663$

Actual Renewal M'ships 515 Actual Renewal Dollars 155,462$

Renew % M'ships 76%Renew % Dollars 103%

% Renewals Processed M'ships 100%% Renewals Processed Dollars 100%

$K

Status Custm % $ Amt % Sep Renewal Detail $ Amt Status

Lost 3 10.0 10.1 5.0 Department of the Air Force - GrpSub (R) '08 109,000 Closed

Pending 8 26.7 13.5 6.7 Gov of Singapore InvestCorp - GrpSub (R) '08 8,995

Renewed 19 63.3 177.1 88.2 NDIC -Natl Drug Intel Ctr 8,512 Closed

Total 30 100.0 200.7 100.0 Parliament of Finland - GrpSub (R) '08 6,000 Closed

Brevan Howard Services Ltd - GrpSub (R) '08 5,990 Closed

Army Reserve Command - GrpSub (R) '08 5,600 Lost

RAND Corporation - LibSub (R) '08 5,000 Closed

Petronas - GrpSub (R) '08 4,200

Ctr For Emerging Threats & Opps - GrpSub (R) '08 3,215 Closed

Mistero della Difesa Raggruuppamento Grp Sub {R} 2,995 Closed

AIG - GrpSub (R) '08 2,995 Lost

Nexen Inc - GrpSub (R) '08 2,940 Closed

18 Others 35,245 11 Closed

Sep Total Potential Inst Renewal $ 200,687

Publishing: Individual Annual Renewal Monthly Trend

Publishing: Institutional Renewal Update-Sep

Publishing: Individual Annual Renewal Update

Publishing: Institutional Renewal Update

Annual Renewal Activity Sep 2008Renewal Rates - %

20%

30%

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90%

100%

110%

120%

Renw # Renw $

Renw # 78% 71% 81% 70% 70% 69% 67% 64% 70% 72% 88% 67% 82% 71% 91% 62% 76% 62% 77% 74% 85% 75% 76%

Renw $ 100%

101%

102%

102%

98% 105%

109%

106%

105%

97% 108%

82% 99% 88% 107%

73% 97% 76% 84% 86% 95% 91% 103%

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep


Publishing: Individual Renewals

Cumulative average renewal trend takes monthly data points and accumulates/averages them over time. For example, Aug 05 is a stand-alone data point for that month. Sep 05 takes Aug and Sep potential renewal and actual renewal and re-computes a 2 month average. Oct 05 takes Aug, Sep, and Oct renewal and re-computes a 3 month average. The rest of the trend months are similarly derived where any given month is a re-computed average of the data for that month and all preceding months. The month percentages are not the key in this metric, but rather the slope of the line. A positive slope (seen here) indicates real improvement over time by removing the potentially skewing impact of individual monthly timing differences (decline recoveries).

Cumulative Average Renewal: Aug 05 - Present

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Aug OctDec Feb Apr Ju

nAug Oct

Dec Feb Apr Jun

Aug OctDec Feb Apr Ju

nAug

Members Dollars


Publishing: Cash Sales Trend 2004-2008

All sales data is YTD.

Institutional Sales are Group Subscriptions only.

Institutional

$0

$500

$1000

$1500

2004 $46 $67 $128 $157 $186 $222 $377 $416 $475 $505 $523 $631

2005 $51 $115 $185 $230 $260 $311 $536 $645 $680 $776 $884 $965

2006 $71 $98 $178 $220 $248 $314 $357 $1261 $1279 $1343 $1392 $1446

2007 $74 $152 $273 $350 $434 $483 $571 $631 $806 $872 $1003 $1046

2008 $52 $508 $563 $629 $779 $841 $923 $1498 $1701

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Individual

0

2000

4000

6000

2004

2005 $140 $290 $440 $577 $725 $919 $983 $1061 $1207 $1421 $1633 $1819

2006 $165 $315 $477 $611 $809 $1030 $1382 $1671 $1917 $2235 $2782 $3011

2007 $262 $563 $818 $1102 $1444 $1985 $2215 $2634 $2988 $3284 $3599 $4012

2008 $277 $470 $906 $1235 $1508 $1907 $2265 $2733 $3122


Combined

-$1000

$1000

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$5000

2004 $46 $67 $128 $157 $186 $222 $377 $416 $475 $505 $523 $631

2005 $191 $405 $625 $807 $985 $1230 $1519 $1706 $1887 $2197 $2517 $2784

2006 $236 $413 $655 $831 $1056 $1344 $1739 $2933 $3196 $3578 $4174 $4457

2007 $336 $715 $1090 $1452 $1878 $2468 $2786 $3264 $3793 $4156 $4603 $5058

2008 $328 $977 $1470 $1864 $2287 $2748 $3188 $4231 $4824



Publishing: New Visitors & Guest Pass Sign-Ups

Above data plots daily new visitors (red line, scaled against left y-axis) and GP sign-ups (blue line scaled against right y-axis), and depicts strong positive correlation between the two.

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31 9/1

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New Visitors GP S-Ups


Publishing: Free List Guest Pass Sign-Up Trend

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Apr May Jun Jul Aug Sep Oct

Free Weeklies FL 3 Strikes

FL GP Sign-Ups Apr May Jun Jul Aug Sep Oct

Free Weeklies 72 54 52 59 130 72 10FL 3 Strikes 18 20 20 26 50 34 7FL Total GPs 90 74 72 85 180 106 17


Publishing: Walk-Up Guest Pass Sign-Up Trend

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Apr May Jun Jul Aug Sep Oct

Barrier Page Home Page Button

W-Up GP Sign-Ups Apr May Jun Jul Aug Sep Oct

Barrier Page 48 38 35 57 135 63 9Home Page Button 31 68 184 79 16Walk-Up Total GPs 48 38 66 125 319 142 25


Publishing: Guest Pass Conversion Trend

Above data is for all our website Guest Passes, whether they are walk-ups or FLers, but excludes test trials like NDIA, Mauldin, and sign up a friend (PL). Sign-ups and Conversions (colored bars) are plotted against Y1 (left Y axis) whereas conversion percentages (black line) are plotted against Y2(right Y axis). The conversion rate exceeds what had been our historical average which was approx 54%.

Signup Data thru 9/26 (Includes comparable conversion data thru 10/3).

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SignUps Conv's % Conv

SignUps 34 190 117 139 112 138 210 499 226

Conv's 21 115 83 102 80 102 139 342 152

% Conv 62% 61% 71% 73% 71% 74% 66% 69% 67%

Jan Feb Mar Apr May Jun Jul Aug Sep


Publishing: Guest Pass Conversion TrendSign-Ups thru 9-26-2008 (Lags by a week to accurately match conversions and sign-ups).

FL: 3 Strikes

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SignUps 18 20 20 26 50 31

Conv's 17 18 17 24 44 27

% Conv 94% 90% 85% 92% 88% 87%

Apr May Jun Jul Aug Sep

FL: Free Weeklies

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SignUps 72 54 52 59 130 67

Conv's 54 38 40 40 97 49

% Conv 75% 70% 77% 68% 75% 73%


W-up: Barrier Page Re-Direct

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SignUps 48 38 35 57 135 57

Conv's 30 24 28 38 102 42

% Conv 63% 63% 80% 67% 76% 74%


W-up: Home Page GP Button

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SignUps 31 68 184 71

Conv's 17 37 99 34

% Conv 55% 54% 54% 48%



Publishing: Multi-Year Membership H/C

Sep HC data is thru 9-30.

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Multi-Yr HC 2,806 2,813 2,939 3,019 3,056 3,180 3,277 3,425 3,608

Total HC 12,479 12,691 12,997 13,434 13,692 13,953 14,051 14,845 15,197

Percent 22% 22% 23% 22% 22% 23% 23% 23% 24%

Jan Feb Mar Apr May Jun Jul Aug Sep


Inst Headcount (Estm)

Institutional H/C

03,0006,0009,000

12,00015,00018,00021,00024,00027,00030,000

9/5 9/12 9/19 9/26 9/30


CIS: Sales Trend 2006-2008

All sales data is YTD.

Public Policy

$0$200$400$600$800

$1000$1200$1400$1600$1800$2000

2006 $156 $498 $498 $866 $1006 $1207 $1215 $1215 $1215 $1215 $1225 $1374

2007 $51 $212 $391 $418 $634 $733 $748 $907 $1657 $1657 $1657 $1919

2008 $69 $69 $181 $181 $181 $211 $261 $261 $291


International

$0

$500

$1000

$1500

$2000

2006 $25 $30 $30 $38 $43 $257 $565 $565 $761 $761 $761 $1151

2007 $165 $225 $225 $237 $287 $341 $527 $551 $551 $1651 $1663 $1663

2008 $0 $0 $8 $8 $8 $8 $8 $8 $20


Protective Intelligence

$0

$200

$400

$600

$800

$1000

$1200

$1400

2006 $108 $158 $254 $262 $303 $390 $405 $418 $423 $514 $567 $654

2007 $232 $303 $318 $428 $448 $477 $552 $580 $591 $591 $663 $663

2008 $215 $238 $253 $328 $356 $371 $374 $486 $486


Documents

Monthly Business Update Sep 30, 2008