Equity Investment Banking Robert Castle Principal 2006 Piper

Introduction Robert Castle, Principal – Investment Banking • In seventh year at Piper Jaffray – Associate for 2 ½ years – Vice President for 3 years • • • Previously with Conseco Finance and Morgan Stanley MBA in Finance, University of St. Thomas BS in Mortuary Science, University of Minnesota Little Known Facts • • Nickname is Digger Enjoy golf, tennis and reading mystery novels Live in Eagan with wife and two boys (9 and 2 years old) Former model and actor

Introduction Typical Week Day (Non-Traveling) • • Wake up at 5: 00 am Exercise from 5: 15 am to 6: 30 am Arrive at work around 8: 30 am Have multiple client meetings/calls throughout day Place calls into new/prospective clients Arrive at home in between 7: 00 pm and 8: 00 pm Read documents or other work at home before bed Typical Week • • 60 – 70 hours per week with travel Two to three days per week of travel

Introduction Attributes of a Successful Banker • • Client focused Analytical and critical thinker Good listener Excellent communicator (orally and written) Ability to delegate Team player and mentor for junior staff Unflappable Banker Objectives • • Become clients’ trusted advisor Build our core base of five to ten key clients

Clients Who they are • Small and middle-market companies – Typically up t 0 $2. 0 billion in market capitalization – Private, growth companies • Financial sponsors – Private equity firms – Venture capitalists Value Piper Jaffray provides them • Provide customized, tailored and trusted advice – No “cookie cutter” approach to our business How they are assigned • By industry expertise and sub-sector specialization

Clients Alternative Energy • • • Clean Technology Distributed Power Generation Ethanol/Bio-Fuels Fuel Cells Solar Power Wind Business Services • • Business Information Services Facilities Services Human Resource Services Industrial Services Learning Services Marketing Services Professional Services Consumer • • • Apparel, Footwear & Softline Retail Consumer Products Food & Beverage Restaurants Specialty & Hardlines Retail Financial Institutions • • • Asset Management Broker-Dealers Depository Institutions Financial Technology & Services Insurance Specialty Finance Health Care • • • Bio. Pharmaceuticals Health Care Services Information-Driven Health Care Life Sciences Tools/Diagnostics Medical Technology Industrial Growth • • • Aerospace Automotive Products Building Products Flow & Process Controls Industrial Distribution Metal Processing Packaging Plastic Processing Security & Safety Specialty Chemicals Specialty Vehicles Other Manufacturing & Services Technology • • • Computer Hardware & Semiconductors Enterprise Software Internet IT Services Wireline & Wireless Communications

Financing/Products/Services Piper Jaffray has expertise in providing “cradle to grave” financing advice • • Start up or private equity capital Initial public offerings (“IPOs”) Follow-on or secondary offerings Debt capital – Senior, subordinated and convertible debt • Financial advisory services – Mergers & Acquisitions – Divestitures – Defensive Advisory • • Corporate and venture services Restructuring (a/k/a Bankruptcy)

Financing/Products/Services Most common and least common financing • Approximately 50% of revenue comes from raising capital (i. e. , IPOs, follow-offerings, convertible securities) and 50% comes from advisory services (M&A and private capital)

Financing/Products/Services How is our research product used? • Provides investment banking clients with a “voice” on the Street • Ability to provide company specific and industry specific knowledge to new/prospective clients • Enables bankers to keep informed of key company events • Utilized by institutional sales force to keep in front of their clients and to sell new offerings

Financing/Products/Services How is our research product used? • Our research analysts are independent from our investment bankers and develop their opinions based on the results and merits of a covered company. • Our research analysts, together with research management, make their own coverage decisions, including decisions to initiate or terminate coverage. Our investment bankers do not have any input into company-specific coverage decisions. • Piper Jaffray does not offer favorable research or specific ratings or price targets in consideration of, or as an inducement for investment banking business. • Our research analysts do not participate in efforts to solicit investment banking business.

Financing/Products/Services How is our research product used?

Financing/Products/Services Conferences that Investment Banking has access to: • • Industry conferences sponsored by trade associations Piper Jaffray sponsored conferences Conference Date Location • • • Financial Conference March New York, NY China Internet & Technology Conference Hardware & Technology Conference Health Care Conference Consumer Conference Digital Media Technology Conference Software & Business Services Conference March May June September Beijing, China New York, NY London, England New York, NY Retail, Apparel & Footwear Conference October London, England Financial Services Conference November Boston, MA Health Care Conference November New York, NY

Partnerships Internal • Product specialists – Equity capital markets (i. e, syndication) – Convertible securities – Debt capital markets – Corporate and venture services • Industry team – Analysts, Associates, Vice Presidents, Principals and Managing Directors External • Accountants, attorneys, printers, financial sponsors

Partnerships

Revenue Is created by: • Working hand-in-hand with clients • Providing thoughtful, value-added advice • Constantly developing existing and new/prospective client relationships. • Being retained to represent companies on transformative events – IPOs (typically 7. 0% commission) – Follow-on offerings (typically 5 -6% commission) – Private capital offerings (typically 3 -6% commission) – Advisory assignments (1 -2% of transaction value) – Debt offerings (. 50% to 3% commission)

Questions