Ann: Commentary on June quarter, page-42

Things for investors to ponder for DSE:

1) Company may well be cash flow positive now that 600,000 users has been achieved - that means cash can start to cascade to the bottom line - every new user from here brings pure profit

2) Company has acknowledged the possibility of higher churn - it is very reassuring that management are conservative and cautious and not going to get ahead of themselves - BUT - what if churn isn't that great? what if customers are quite happy to part with a couple of bucks a month for peace of mind - every non-churn means the user numbers are stickier

3) What can the 2 new platform partners Squalio and Tarsus bring? - surely 1000's more users - possibly 10,000's

4) How much more can UOL and Mat Bao deliver? they have already shown they can yield 100,000's in a few short weeks - how much more to come?

5) How many more additional platform partners are in the offing? When a company is on a roll each new bizz conversation gets easier - success begats success

6) Next update is due end of August - can there be another surge in user numbers?

7) If profit per user is $1 per month - 1 million users delivers a $1 million per month - $12 million per year • an exceedingly conservative multiple of x 10 suggests an MC of $120 million (SP around 30 cents)
• x25 would be neutral suggesting $300 mill MC (SP around 60 cents)
• but high growth tech companies routinely command x 40 - suggesting an MC of $480 mill (SP around 96 cents)