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magdan

02/23/06 2:15 PM

#60331 RE: rotorhead #60314

Dilution may be a little more than 10%

.DEALS ...... Price .... Cash .... Stock .... No. shares(8ks&est)
............. ..... $mil ......$mil...... ..$mil...... mil shares
Mobot..... 10.0.....3.5 ......6.5 ...... 16.9
HipCricket. 4.5...... 0.5.......4.0........ 10 Est.(LOI)
12Snap..... 22.0.... 2.5 ...... 19.5 ...... 49.3
Gavitec..... 7.2..... 1.8...... 5.4 ....... 13.7
Sponge...... 17.5..... 6.0...... 11.5....... 19.7

Totals..... $61.2..... 14.3...... 46.9....... 119.6 = approximately
a 25% increase in shares... and excludes a minimum of 54 million shares to Cornell et al on the conversion of the Preferred and 75 million on exercise of the warrants...
Sponge also gets another $4.4 million in shares on earnout of $2.3 million over 2 years