Presentation to Location Intelligence Conference

April 2007

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Executive Summary – Fog City Capital

Focus on Mid-Mkt Business Services and Software ($7 - $100M Revs)

Principals span ex-entrepreneurs and deal backgrounds

Partner with existing management – play hands-on, active roles

Focused around 2 themes: Intersection of Software and Services

• Software companies looking to build recurring, ongoing relationships w/ customers• Services companies looking to build stickiness and differentiation via technology

Global Execution • Expanding globally from sales/market penetration and execution/delivery is now

accessible to mid-market companies• Most mid-mkt companies don’t know how to go about it or think only in terms of cost

reduction

Not a VC firm – look at companies with established business models

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Fog City Capital GIS Experience

We have looked at content, services and software/applications

Content: 2-D Mapping Content 3-D Mapping Content Other specialized data vendors

Services: Image Acquisition Photogrammetry GIS Mapping Database Maintenance Technology services

Software/applications Consumer oriented applications enabled by GIS technology B2B applications enabled by GIS technology Software vendors

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Industry Growth Drivers

Industry has grown at 13.6% CAGR 2000-2005 and is predicted to be 14-15% CAGR from 2005-2010

Under-investment in infrastructure in the US has created pent-up demand Federal govt put off spending post 9/11. This has picked up American Society of Civil Engineers estimates $1.6 trillion investment in U.S. infrastructure over next 5 yrs

Federal outsourcing trend Federal government is increasingly outsourcing in-house departments to external vendors Active lobbying on the part of GIS companies to encourage privatization of GIS services

Growing industrial and consumer demand/awareness driven by entry of Google and Microsoft into GIS applications – fueling desire for higher resolution/3D images

Fundamental shift in technology (like from vinyl records to CD’s) where all maps in existence need to be digitized – this is driving new demand to update maps as well

GIS is becoming a key part of any database application – Oracle has spatially enabled their RDBMS

Improving technology is making data more accessible (digital), cheaper and more accurate, bringing in new users at different price points thus expanding the market

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GIS Sector – Why is it interesting to Fog City?

Industry growth drivers (previous slide) are not changing any time soon

Highly fragmented market Very few scale players that can span services and geographical footplint Real scale benefits - ability to win contracts as a small vendor/service provider

is limited Ability to deploy capital to consolidate top-tier players

High technology intensity Race to build new, relevant applications

Real opportunity to expand globally Huge infrastructure needs in developing countries that don’t have know-how or

experience Countries like India have only just allowed private-contractors to fly across the

country for image acquisition

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India & China - Background

India and China -- Emerging Superpowers Until the late 19th century India and China were the world’s largest economies In the 18 centuries up to the 1800’s, they produced 80% of world GDP Europe’s technology revolution left them behind only recently But the industrial revolution only involved one third of world population

The world is tilting their way again India and China’s economic growth at 7% annually is 3x of West Not just about India and China – they were only 25% of last years total increase in global GDP from

emerging economies

Demographics 2 billion people; 1 billion new consumers entering world economy Average age of Indian population is 24; 30 mm new people join the middle class each year Opened up to foreign investment; Consumer Credit widely available

Their economies are not just export oriented Western revenues was just the catalyst Majority of both economies is led by domestic consumption; disposable income rapidly increasing Now becoming significant importers of Western goods

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GIS in India & China

Space programs in both countries spawned skilled technical people Started off doing labor-intensive, commoditized work Over time, have expanded into technology services and application development

Profusion of vendors who have grown as sub-contractors to US vendors Many offshore service providers are looking to get into software/applications Others want to sell directly Many 2nd tier providers are under-funded

Global ambitions and high valuations gives them currency for acquisitions Most offshore players lack the skills and capabilities to sell effectively in the US Many have made “front-end” acquisitions in the US to build bus dev capabilities Some of the largest GIS players, such as Rolta (India, >$120mm in revs) and Infotech (India, >83mm in revs) are growing rapidly (>30%)

Strategy for US players Think of India/China as source of labor or source of revenues? Build/Buy ex-US presence organically? Partner vs. Go-it-alone? Ignore?

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Contact Us

Adit Abhyankar

Partner

Fog City Capital, LLC

49 Stevenson Street, Suite 525

San Francisco, CA 94105

(415) 226-1051

adit@fogcitycapital.com