Comparison to NASDAQ

The Alternative Investment Market (AIM) of the London Stock Exchange (LSE) and NASDAQ are psychologically competitive but should be viewed as complementary

• Average market capitalization on NASDAQ is $2.2 billion
• Average market capitalization on AIM is $101 million
• Transition point from AIM to NASDAQ is around a market capitalization of $500 million

London's AIM provides a 3 - 5 year bridge to grow from $30 - $500 million

Many U.S. companies list on NASDAQ too early

• 75% of the companies on NASDAQ have market capitalizations below $500 million
• 65% of those companies have no research coverage, whereas 80% of London AIM-listed companies are covered
• U.S. investors don’t know of or care about these ‘small’ companies
• Regulatory burden on NASDAQ is disproportionate to the size of the company

Valuation and liquidity on NASDAQ are generally better than on London's AIM but need to be considered in light of:

• Internal and external maintenance costs of listing
  • NASDAQ is $2 - $3 million per year
  • Exchange Act and SOX impose a high regulatory burden on NASDAQ
  • AIM is £200 - £300 thousand ($250 - $375 thousand) per year
  • AIM Rules for Companies impose a moderate regulatory burden on London's AIM
• Dilution
  • Generally a bit more at IPO on London's AIM
  • Generally about the same after the company proves itself and accesses London AIM’s deep secondary offering market
• Ability to use public shares as a currency for acquisitions
  • Liquidity on London's AIM averages 4% per month
  • Liquidity on NASDAQ averages 12% per month for companies with market capitalizations below $500 million
  • Liquidity on NASDAQ is solidly above 20% per month at market capitalizations above $500 million

The proper choice of AIM Nominated Adviser, AIM Nominated Broker(s), Financial PR/IR firm and Independent Equity Research firm are key to maximizing valuation and liquidity from listing on London's AIM.