#1PROJECT SOLAR CREDIT FIRST SUISSE BOSTON WIT 93719 16389 PRESENTATION TO BOARD OF DIRECTORS STRICTLY CONFIDENTIAL | FEBRUARY 1, 2005 PRELIMINARY | SUBJECT TO FURTHER REVIEW AND EVALUATION THESE MATERIALS MAY NOT BE USED OR RELIED UPON FOR ANY PURPOSE OTHER THAN AS SPECIFICALLY CONTEMPLATED BY A WRITTEN AGREEMENT WITH CREDIT SUSSE FIRST BOSTON#2CONFIDENTIAL Situation Overview On November 19, 2004, Saturn contacted CSFB and expressed a verbal interest to acquire Solar for a 20% premium to Solar's closing stock price ($31.88 per Solar share) (¹) ▸ On November 23, 2004, CSFB discussed Saturn's verbal proposal with Solar's Board of Directors: CSFB was subsequently instructed by Solar's Board to communicate to Saturn that its offer was not attractive and insufficient for Solar to not proceed with the spin-off of Allen ▸ On November 30, 2004, Saturn contacted CSFB and offered to acquire Solar for $33.00 - $35.00 per Solar share ▸ On December 2, 2004, CSFB communicated the second offer to Solar's Board; the Board subsequently authorized Solar management and CSFB to meet with Saturn to understand its proposal and provide preliminary information to Saturn regarding Solar, management met with Saturn on December 6, 2004 (2) ▸ On December 14, 2004, CSFB discussed Saturn's proposal with Solar's Board of Directors; the Board subsequently authorized Solar management and CSFB to allow Saturn to conduct due diligence so long as Saturn was prepared to proceed on the basis of $35.00 per share or greater . Following the Board meeting, Saturn confirmed that it understood the Board's position and that it was prepared to proceed on that basis On January 5-6, 13-14, and 18, 2005; Saturn performed preliminary financial and technology due diligence on Solar ▸ On January 21, 2005 Saturn had an investment committee meeting and subsequently contacted CSFB, on January 25, stating that its "best and final offer" to acquire Solar is for $35.00 per share (1) Closing Solar share price on November 18, 2004 was $26.57 (2) On December 3, 2004. Saturn and Solar entered into a confidentiality agreement CREDIT FIRST SUISSE BOSTON 1#3CONFIDENTIAL Overview of Saturn Proposal Proposal $35 per Solar share is its "best and final" offer ▸ Saturn is "reasonably confident" it can finance this offer; however, it is not going to be easy" (i.e.. significant amount of debt and equity to be raised) Mid-teens IRR ▸ ▸ Confirmed that there will be no financing contingencies/out Four lead sponsors, including Saturn, and LPs Saturn is still considering an equity investment of up to $1.0BN (including LPs) The three to four other yet to be identified lead sponsors will need to put in $500MM - $1.0BN; may have other sponsors co-invest at a later stage Two to three lead bank financing sources Saturn's $35.00 proposal implies an equity and enterprise value of $10.6BN and $10.9BN, respectively 32.4% premium to current stock price of $26.43 (as of 1/27/05) Proposal is subject to mutual agreement on equity rollover between Saturn and Solar management CREDIT FIRST SUISSE BOSTON Assumptions Solar organic revenue growth of 3.0 % - 3.5% ▸ Iverson organic revenue growth of 4.5% - 5.0%; margins inline with management estimates ▸ Allen organic revenue growth of 2.0%; margins declining (lower than management estimates) ► HE/PS organic revenue growth of 6.0% Leverage of 6.5x FYE 2004 EBITDA Saturn has identified three areas to potentially improve profitability; they believe that Solar could generate $30MM - $40MM of additional operating cash flow in the next 1-2 years ▸ Lower tax rate ▸ Incremental revenue from training services ▸ Incremental revenue from professional services 2#4CONFIDENTIAL Overview of Saturn Proposal (Cont'd) Sin millions, except per share values) Implied Premiums Current (01/27/05) 10-Day Average 30-Day Average 60-Day Average 90-Day Average Pre Spin-Off Ann. (10/1/04) LTM High (02/11/04) LTM Low (08/11/04) Historical Price CREDIT FIRST SUISSE BOSTON $26.43 $26.72 $27.27 $26.95 $26.38 $24.42 $31.65 $22.40 Premium/(Discount) to Sixers Price Current Proposal $26.43 $35.00 0.0% (1.1%) (3.1%) (1.9%) 0.2% 8.2% (16.5%) 18.0% 32.4% 31.0% 28.4% 29.9% 32.7% 43.3% 10.6% 56.3% Implied Multiples Implied Equity Value Implied Enterprise Value FY2004 PF Revenue FY2005 Revenue FY2004 PF EBITDA FY2006 EBITDA FY2004 PF EPS FY2005 EPS FY2004 Street EPS FY2006 Street EPS Operating Statistics ( $3,820 3,939 1,092 1,153 $1.39 $1.53 $1.40 $1.60 Implied Multiples Current $26.43 $7.842 8,150 2.1x 2.1x 7.5x 7.1x 19.0x 17.3x 18.9x 16.58 (1) Financials per Solar Management (Rating Agency model updated with 2004 actuals and 2005 budget data and pro forma for OSSI, Inflow. Vivista, Integrity and RRI acquisitions) (2) Assumes proforma net debt of $308 million per Solar management (3) Per Wall Street Research Proposal $35.00 $10,640 10,948 2.9x 2.8x 10.0x 9.5x 25.2x 22.9x 25.0x 21.9x 3#5CONFIDENTIAL Historical Stock Price Analysis Daily from January 27, 2000 to January 27, 2005 Share Price $40 $35 $30 $25 $20 $15 $10- $5 SO 1/27/00 High (3/19/02) Low (1/5/00) Average CREDIT FIRST SUISSE BOSTON 10/14/00 Price $34.89 14.00 24.61 7/2/01 3/20/02 12/6/02 Volume Solar Volume(MM) High (7/19/02) Low (11/26/04) Average 32.322 0.232 1.522 8/24/03 Saturn Proposal 5/11/04 Days Closed at or Above $33.00 $34.00 $35.00 13 35,000 8 0 30,000 25,000 20,000 15,000 0 1/27/05 10,000 5,000 Volume in Thousands#6CONFIDENTIAL Overview of Alternatives (2) (3) Solar Revenue CAGR (05-'09) EPS CAGR (05-'09) Future Value (1/1/09) Present Value (1/1/05)* Sell (Pre-Spin) Spin-Off 16.5x P/E 19.6x P/E 16.5x P/E 19.6x P/E Downside Case (-2% EPS CAGR) $35.00 (Current Offer) 5.0% 7.3% $35.02 $41.56 $22.26 $26.41 Sell A & I (Post-Spin) Hold Base Case 6.4% 9.3% $37.71 $44.74 $23.96 $28.44 $30.01-$37.56 (Implied Sale Value (¹)) $25.31-$31.84 (Implied Trading Value) Upside Case (+2% EPS CAGR) 7.8% 11.3% $40.55 $48.11 $25.77 $30,57 Growth Required for a PV of $35.00 per Share 16.5x P/E 19.6x P/E 14.4% 20.1% $55.07 $35.00 Revenue will need to grow at an implied CAGR of at least 10.7% over the next four years to reach a present value of $35.00 per share Based on Solar preliminary comparable transaction analysis Based on Solar preliminary comparable company analysis Future values calculated using the current 1-year forward calendar P/E of 16.5x and the current 3-year average 1-year forward P/E of 19.6x Present Value discounted at 12.0%. Solar's current cost of equity 10.7% 15.1% $55.07 $35.00 This analysis is not CSFB's view on the future value of the stock as there are many factors that contribute or affect its value. CREDIT FIRST SUISSE BOSTON 5#7CONFIDENTIAL Solar Preliminary Valuation Summary Preliminary Valuation Summary (Sin millions) Equity Price per Share (Enterprise Value) Mal p joy2004 Revewes [Cracs Revenues CYZA PS FRIDA CYMOS EDIT DA CYD EUsy C2305 Upra CY2004 PF Revenues CY2005 Revenues CY2004 PF EBITDA CY2005 EBITDA (1) Note: $36.00 2 $35.00 12 A 95 CY2004 PF Unlevered Ni CY2005 Unlevered NI $40.00 25 A 274 $30.00 CREDIT FIRST SUISSE BOSTON $25.00 $20.00 $15.00 113 Statistic 53.820 3.939 1.092 1.153 423 467 Comparable Company Analysis $35.00 ($10,948) $31.84 ($9,900) Solar Equity Valuation (Per Share) $25.31 ($7,800) 2.0x 2.0x . 7.1x . 6.8x 18.4x 16.7x 2.6x 2.5x 9.1x 8.6x 23.4x 21.2x Comparable Transaction Analysis $37.56 (11,800) $30.01 ($9,300) 24x 24x 8.5x 8.1x 22.0x 19.9x .. .. 3.1x 3.0x 10.8x 10.2x 27.9x 25.2x Per Solar Management 2004 statistics pro forma for OSS Inflow. Vivista, Integrity and RRI acquisitions Net Debt of $300MM as of 12/31/04 per Solar management. Discounted Cash Flow Analysis $34.85 ($10,000) $28.17 ($8,700) 2.3x 2.2x 8.0x 7.5x 20,6x 18.6x .. 2.9x 2.8x 10.0x 9.5x 25.8x 23.3x 52 Week High / Low $31.65 ($9.838) Other Metrics $22.40 (56,893) 1.5x 2.6x Tây 2,5 6.3x 6.0x 16.3x 14.7x ** 9.0x 8.5x . 23.3x 21.0x Research Analyst Price Target $34.00 ($10.5152- $26.00 ($8,015) 2.1x 2.0x 7.3x 7.0x 18.9x 17.1x - - 2.8x 2.7x 9.7x 9.2x 25.1x 22.7x 6#8CONFIDENTIAL Sin million) Solar Valuation Scenarios The following is based on preliminary valuation using comparable trading and comparable transactions Aggregate Value Iverson Allen Total Sixers Aggregate Value Net Debt Equity Value FD Shares Outstanding Price per Share Implied Multiples FY2004 PF Revenue FY2005 Revenue FY2004 PF EBITDA FY2005 EBITDA FY2004 PF EPS FY2005 EPS FY2004 Street EPS FY2005 Street EPS Operating Statistics CREDIT FIRST SUISSE BOSTON $3,820 3,939 1,092 1.153 $1.39 $1.53 $1.40 $1.00 Scenario 1 Allen and Iverson Remain Independent Low $4,200 . 3.600 7,800 308 7,492 296.0 $25.31 2.0x 2.0x 7.1x 6.8x 18.2x 1652 18.1x 15.8x - . $5,300 4.600 9,900 308 9,592 301.3 $31.84 2.6x 2.5x 9.1x 8.6x 22.9x 20.8x 22.7x 19.9x Scenario 2 Iverson Remains Independent Allen is Sold Tax Free Low High $4,200 4.600 8,800 308 8,492 298,1 $28.48 2.3x 2.2x 8.1x 7.6x 20.4x 18.6x 20.3x 17.8x (1) Operating statistics per Solar Management, 2004 statistics pro forma for OSSI, inflow. Vivista, Integrity and acquisitions (2) Per Wall Street Research $5,300 5,800 11,100 308 10,792 304.4 $35.46 10.2x 9.6x Implied Multiples 2.9x 2.8x BÁN 23.2x Scenario 3 Iverson is Sold Tax Free Allen Remains Independent Low 25.3x 22.2x $4,700 3.600 8,300 308 7,992 297.0 $26.91 2.2x 2.1x 7.6x 7.2x 19.3x 17.6x 19.2x 16.8x $6.000 4.600 10,600 308 10,292 303.1 $33.95 2.8x 2.7x 9.7x 9.2x 24,4x 22.2x 24.3x 21.2x Scenario 4 Allen and Iverson are Sold Tax Free Low $4,700 4.600 9,300 308 8,992 299.6 $30.01 2.4x 2.4x 8.5x 8.1x 215 19.6x 21.4x 18.8x $6.000 5.800 11,800 308 11,492 306.0 $37.56 3.1x 3.0x 10.8x 10.2x 27.0x 2.5 26.8x 23.5 7#9CONFIDENTIAL 35.0x 30.0x 25.0x 20.0x 15.0x 10.0x 5.0x Historical 1-year Forward P/E Multiple 3/31/86 S&P Mean 10.5 CREDIT FIRST SUISSE BOSTON Solar Mean: 19.2x Turny 5/20/89 Note: 1-year forward P/E besed on IBES (1) As of 1/27/05 7/9/92 8/29/95 Solar www S&P 500 Current 1 Year Average 2 Year Average 3 Year Average 5 Year Average Period Average September 11, 2001 10/18/98 12/7/01 Solar 16.50 17.7x 18 Ex 19.6x 21.8x 19.2x 1/27/05 S&P 18.7x 19.9x 21.8x 23.4x 24.4x 195x 8#10CONFIDENTIAL S I eta 200 MM. How M Comparable Company Multiple Analysis FUNSHO HOPE ETD) th www Mas Sear CHE DW) Fate Astodia Ce Fawx Cell Fou Peer Group Comparables 58-4) 1541 Xw 2.18 OH 364 59 38.72 1000 4309 #a 16:22 110 CREDIT FIRST SUISSE BOSTON thành 1407 LOME AT W 34.300 1392 140 194 AME N LKD at NY 1218 W NY Fer MA 44 M.K 439 82 11.30 14.3 FAIR MT RH 21.00 424371 4406 4.000 138 MAM LAM 954 300 M.A STA 10 k M 2.... MI ND 27 SH 3D W.Y 2N 2N 20 1.N e 14 of KUPA 1.2 1.18 8TH 13 124 4.24 1h 22 2.1 8TH CM 14 21a 3.N 2.24 9.5 43 AN C C 12 TEM ADM TM 143 wis 9.2 "N IN 5. KG SN In 346 6F HA IN In 756 VA YA 17 21% CTM LIN IN Mey 2.M 38 TEEN in AM RIGH H.P 9.3 ETN 49 1264 1319 34% 7074 529 49 HEIN 18.48 un LA 49 PRIN 226 1226 8.56 418 MIS M 1429 LON 2018 539 1699 LETS 12 3415 1716 HIS CAN MEN 140% 1928 2414 2020 an un 3A Sector Consumer/Retail Energy Finance Healthcare Industrial/Manufacturing Media Non-Peer Group Comparables Technology High Median Mean Low # of 2005 P/E '04-'05 Rev Companies Multiple Growth 12 2 24 3 7 3 13 16.1x 17.2x 12.4x 16.6x 15.8x 19.8x 19.8x 19.8x 16.6x 16.8x 12.4x 5.0% 3.0% 7.2% 4.8% 5.9% 4.1% 9.7% 9.7% 5.0% 5.7% 3.0% Note: Non-peer group comparables represent companies with market capitalizations greater than $1 billion in the S&P 500 or NASDAQ that have long term EPS growth rates between 9.5% and 10.5% LTGR 10.0% 9.9% 10.1% 10.2% 10.0% 9.9% 10.1% 10.2% 10.1% 10.0% 9.9% 9#11CONFIDENTIAL Illustrative Theoretical Stock Price Performance Based on Current Multiple of 16.5x $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 Future Value (Using Current Multiple of 16.5x) $26.43 $28.82 $28.29 $36.71 $33.17 $34.77 $32.00 $27.76 $30 85 $40.55 $37.71 $35.02 $32.90 Jan-1-05 Jan-1-06 Jan-1-07 Jan-1-08 Jan-1-09 -2% Per Annum Base Case + 2% Per Annum (9.3% CAGR) Base Case Present Value (Discounted at the Cost of Equity of 12.0%) $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $26.43 525.73 $25,26 $25.51 $24.79 $24.59 $20 13 $24.75 $23.42 $23.96 $22.26 Jan-1-05 Jan-1-06 Jan-1-07 Jan-1-08 Jan-1-09 - 2% Per Annum Base Case (9.3% CAGR) -2% Per Annum Base Case Note: Future values calculated using the current 1-year forward P/E of 16 5x and a current stock price of $26 43 as of 1/27/05. Note: Present value discounted at 12.0% based on Solar cost of equity This analysis is not CSFB's view on the future value of the stock as there are many factors that contribute or affect its value. CREDIT FIRST SUISSE BOSTON 10#12CONFIDENTIAL Illustrative Theoretical Stock Price Performance - Based on 3-year Average Multiple of 19.6x Future Value (Using 3-year Average Multiple of 19.6x) $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $26.43 $34.20 $33.57 $39,38 $41.25 $37.97 $32.94 $36.60 $39.04 $44.74 Base Case $41.56 Jan-1-05 Jan-1-06 Jan-1-07 Jan-1-08 Jan-1-09 -2% Per Annum Base Case (9.3 % CAGR) +2% Per Annum Present Value (Discounted at the Cost of Equity of 12.0%) $50.00 $45.00 $40.00 $35.00 $30.00 $25.00 $26.43 $30 53 $29.97 $31.38 $30.27 $29.41 $29.18 Note: Future values calculated using a 3-year average 1-year forward P/E of 19 6x and a current stock price of $26.43 as of 1/27/05 Note: Present value discounted at 12.0% based on Solar cost of equity $31,00 $29.36 $27.78 $30 57 $28.44 Base Case $26.41 Jan-1-05 Jan-1-06 Jan-1-07 Jan-1-08 Jan-1-09 -2% Per Annum +2% Per Annum Base Case (9.3% CAGR) This analysis is not CSFB's view on the future value of the stock as there are many factors that contribute or affect its value. CREDIT FIRST SUISSE BOSTON 11#13CONFIDENTIAL Premiums Paid Analysis Implied Premiums Current (01/27/05) 10-Day Average 30-Day Average 60-Day Average 90-Day Average Pre Spin-Off Ann. (10/1/04) LTM High (02/11/04) LTM Low (08/11/04) Historical Price CREDIT FIRST SUISSE BOSTON $26.43 $26.72 $27.27 $26.95 $26.38 $24.42 $31.65 $22.40 Premium/ (Discount) to Sixers Price Proposal $35.00 Current $26.43 0.0% (1.1%) (3.1%) (1.9%) 0.2% 8.2% (16.5%) 18.0% (1) Source SDC. (2) Based on Global M&A deals with an all cash consideration from 1/1/1996 to 1/28/2006. 32.4% 31.0% 28.4% 29.9% 32.7% 43.3% 10.6% 56.3% Premiums Paid Analysis Precedent Premiums Paid Tech Deals Greater than $1BN All Deals Greater than $1BN Implied Solar Price per Share Tech Deals Greater than $1BN All Deals Greater than $1BN Median Premium to Share Price 30 Days Prior 1 Day Prior 28.5% 25.2% $33.96 $33.08 34.4% 31.4% $35.51 $34.73 12#14CONFIDENTIAL Solar LBO Analysis Solar Price of $35.00 per Share (S in milions, except per share Sources & Uses Sources: Cash and Equivalents Bank Debt High Yield Sponsor Equity Total Sources Uses Refinance ST Debt" Refinance LT Debt Purchase Solar Equity Cash on Hand (Beginning Bal.) Transaction Expenses Total Uses Credit Analysis ($35.00 per share) EBITDA (2) Bank Debt Total Debt Total Debt / EBITDA EBITDA/ Interest Expense Total Debt/Capitalization $210 2,729 4,366 4,178 $11,483 CREDIT FIRST SUISSE BOSTON $8 509 10,640 150 175 $11,483 Valuation Price per Share FD Shares (MM) Equity Value Plus: Net Debt Aggregate Value 2004 PF EBITDA Agg Value/2004 PF EBITDA 2004PF $1,092 2,729 7,095 6.5x 2.1x 62.9% 2005E $1,153 2,581 6,948 6.0x 2,2x 61.2% $35.00 304.0 10,640 308 $10,948 Source: Financials per Solar Management. Note: Assumes management receives incremental 5.0% equity interest and 5.0% of options with a strike price of $35.00 (1) Existing debt and cash as of December 31, 2004 and pro forma for OSSI, Inflow, Vivista, Integrity and RRI acquisitions (2) 2004 EBITDA pro forma for OSSI, inflow, Vivista. Integrity and RRI acquisitions (3) Assumes an interest rate of 6.0% and 8.5% for the bank debt and high yield, respectively 1,092 10.0x 2006E $1,252 2,442 6,808 5.4x 2.4x 59.2% Return Analysis - 2009 Exit Multiple 9.0x 10.0x 11.0x 12.0x 2007E $1,357 2,094 6.460 4.8x 2.7x 56.2% 2008E $1,428 1,721 6,087 2.9x 52.8% IRR (5-year) 12.2% 16.0% 19.4% 22.4% 2009E $1,498 1,309 5,675 3.8x 3.2x 49.1% 13#15CONFIDENTIAL IRR Sensitivity CREDIT FIRST SUISSE BOSTON IRR Analysis Purchase Price $33.00 $34.00 $35.00 $36.00 $37.00 $38.00 Note Assumes an exit mutiple of 10.0 (1) Aggregate value/2004 PF EBITDA IRR Analysis $33.00 $34.00 $35.00 $36.00 $37.00 $38.00 Note: Assumes leverage of 6.5x (1) Aggregate value/2004 PF EBITDA 5.50x 16.9% 15.3% 13.9% 12.5% 11.3% 10.1% 8.0x 11.5% 9.5% 7.8% 6.2% 4.7% 3.4% Leverage Entry Leverage Multiple 6.50x 20.0% 6.00x 18.3% 16.5% 14.8% 13.3% 11.9% 10.6% Exit Multiple 9.0x 16.1% 17.9% 16.0% 14.3% 12.7% 11.3% 14.0% 12.2% 10.5% 9.0% 7.6% Exit Multiple 10.0x 20.0% 17.9% 16.0% 14.3% 12.7% 11.3% 7.00x 22.2% 19.7% 17.5% 15.5% 13.6% 12.0% 11.0x 23.5% 21.3% 19.4% 17.6% 16.0% 14.5% 7.50x 25.1% 22.0% 19.3% 16.9% 14,8% 12.9% 12.0x 26.7% 24.4% 22.4% 20,6% 18.9% 17.4% Implied Entry Mult 9.4x 9.7x 10.0x 10.3x 10.6x 10.9x Implied Entry Mult 9.4x 9.7x 10.0x 10.3x 10.6x 10.9x 14#16CONFIDENTIAL Potential Sources of Funding Blackstone Group Thomas H. Lee LARGE-SCALE INDEPENDENT PRIVATE EQUITY FUNDS LARGEST FUND SIZE TRANSACTION TRANSACTION TOTAL EQUITY (SBN) IN PORTFOLIO SIZE (SBN) CHECK (SBN) $0.9 TRW Automotive Warner Chico $1.3 Texas Pacific Group Warburg Pincus KKR Carlyle Group Apollo Welsh Carson Bain Capital CD&R JP Morgan Capital Partners DLJ Merchant Banking CVC Note: Goldman Sachs Capital Partners 56.1 CREDIT FIRST SUISSE BOSTON $5.3 Metro-Goldwyn-Mayer Eircom plc Panamsat Dex Media Intelsal Dex Media Warner Music Race SA 46.1 $3.9 $3.8 $3.0 $3.4 $2.6 Equity Funding FUND SIZE (SBN) INVESTMENT BANK AFFILIATED PRIVATE EQUITY FUNDS 46.3 Unisource Energy $6.3 $5.4 Metro-Goldwyn-Mayer $3.3 $5.1 Nalco Holding $2.7 $4.1 $7.1 $5.0 $7,1 $2.6 $4.9 $3.0 $1.6 LARGEST TRANSACTION TRANSACTION TOTAL EQUITY IN PORTFOLIO SIZE($BN) CHECK (SBN) $5.1 $4.2 NA 50.5 $1.5 50.5 $1.6 $1.1 NA NA 31.6 $1.1 Fomica Corp $1,1 NA Saturn fund size is 53.68N Sehun's largest transaction is UGS ($21BN transaction size $1.08N equity check) Approximate size of most recently raised fund. Source: Capital 10 Debt Funding The current market indicates that it has the ability to raise over $4BN of new high yield issuance ► The new issue market was extremely active with $2.3 billion in new issuance for the week ended January 21, 2005 ▪ For 2004, 666 deals priced raising $173 billion in proceeds ▪ 2004 was a record year in terms of number of deals priced and proceeds . There is currently $6.0 billion of announced deals in the forward calendar AMG reported $439 million of outflows from High Yield Mutual Funds this week 15#17CONFIDENTIAL Saturn Proposed Preliminary Timetable and Significant Spin-off Dates Week of January 31 February 7 February 14 February 21 February 28 Dates 2/1 2/2 2/3-2/4 2/5 216 217 2/8-29 2/10 2/11-2/12 2/13 2/14-2/18 CREDIT FIRST SUISSE BOSTON 221-2/25 2/22 2/23 2/28-3/4 2/28 2/28 February 2005 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 March 2005 April 2005 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Saturn Proposed Project Solar Timetable Solar Board of Directors Meeting CSFB to deliver response from Solar Board Solars advisors to negotiate key transaction terms with Satum 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Agreement on key transaction terms Discussions with management about role, equity rollover and post-transaction governance Discussions with management about role, equity rollover and post-transaction governance (cont'd) Permission granted by Solar Board to call financing sources -Invite three to four PE is to participate - PE fimms execute a confidentiality agreement with Solar -PE 1mms execute consortium agreement term sheet with Satum -PE imms receive high level overview materials and diligence bring-down on Solar -Provide PE srms copy of negotiated key transaction terms -Refine and finalize investor presentation with management One day management meeting with PE firms PE fimms to decide whether to proceed PE firms confirm interest in proceeding. Private equity consortium formed Due diligence meetings with management and private equity consortium Blackout. Sclar management meeting offsite Private equity consortium to confirm interest to CSFB Satum permitted to call two to three debt financing sources Continue diligence Satum to approach other sources of equity capital (e.g., limited partner investment community) Solar legal counsel delivers draft merger agreement Solar Board Checkpoint /Meeting Preliminary Proposed Announcement Date Spin-off Significant Dates Receive first round of comments from SEC on Form 10 document 16#18CONFIDENTIAL Saturn Proposed Preliminary Timetable and Significant Spin-off Dates (Cont'd) Week of March 7 March 14 March 21 March 28 April 11 April 25 Dates CREDIT FIRST SUISSE BOSTON 3/7 3/8 3/9 3/9 3/14-3/18 3/14-3/18 3/21 3/23 3/24 3/24 3/30 3/31 3/31 4/1 4/15 February 2005 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 March 2005 April 2005 12 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Saturn Proposed Project Solar Timetable Checkpoint for all equity financing sources including "soft" commitments Final non-binding confirmation of interest with CSFB Commence negotiations of merger agreement Commence confirmatory accounting and legal diligence Continue confirmatory accounting and legal diligence Continue negotiations of merger agreement Finalize definitive merger agreement Solar Board meeting to approve transaction Execute definitive agreement Announce transaction (Closing expected within 3 months) 4/28 if SEC comments are significant, effective date could be delayed Solar Board Checkpoint / Meeting Preliminary Proposed Announcement Date Spin-off Significant Dates Earliest date SEC declares document effective) IRS ruling obtained Resolve final capital structure issues Sixers Board meeting to declare dividend Announce Record Date "When issued trading begins Record Date Distribution Date 17#19CONFIDENTIAL Potential Key Issues Confidentiality Market Check Spin-off CREDIT FIRST SUISSE BOSTON ▸ The formation of the private equity consortium will include three to four additional firms ▸ Debt financing sources will include two to three banks ► The risk of a "leak" increases as more parties become involved - it will be important to continue to run a tight process on an expedited basis ▸ Consider performing a market check before selling to Saturn, rather than just relying on a fiduciary out (termination right) ■ Private equity firms Strategic companies " ▸ As additional private equity firms are included in the consortium and conduct due diligence, they become "contaminated" from a tax-free acquisition for a 1-year period post spin-off ▸ To the extent the Solar transaction timetable is delayed, Board may need to consider proceeding with or delaying the spin-off 18#20CONFIDENTIAL Appendix CREDIT FIRST SUISSE BOSTON T 00 83583 612560 19#21CONFIDENTIAL Solar Financial Projections ($ in millions) Revenue % Growth Costs and expenses: Operating Addi SG&A Depreciation and amortization Amort of aquisition intangibles Total costs and expenses Operating income % Margin Interest expense Interest income Income before taxes Income taxes Net income before merger costs Merger costs net of tax Net income EPS % Growth EBITDA % Margin % Growth Working Capital Changes Capital Spending % Revenue $ CREDIT FIRST SUISSE BOSTON $ $ $ 2004 3,555.9 $ 25.7% (2.509.5) (218.1) (118.9) (2,846.6) 709.3 19.9% (28.5) 8.2 689.0 (275.7) 413.3 40.3 453.6 1.39 $ 1,046.3 S 29.4% 41.2 (236.9) 6.7% Source: Solar Management (1) Pro forma for OSSI, Inflow, Vivista, Integrity and RRI acquisitions 2004PF 3,820.0 S 705.1 18.5% 411.6 S 1.39 S 1,091.6 S 28.6% 2005 3,939.0 S 3.1% (2,786.2) (225.0) (148.7) (3,159.9) 779.0 19.8% (22.0) 757.0 (302.8) 454.2 (9.0) 445.2 S 1.53 S 10.4% 1,152.7 S 29.3% 5.6% (47.1) (300.9) 7.6% 2006 4,205.2 S 6.8% (2.953.6) (236.3) (158.0) (3,347.8) 857.4 20.4% (10.5) 847.0 (338.8) 508.2 508.2 S 1.71 S 11.9% 1,251.7 S 29.8% 8.6% (23.5) (307.1) 7.3% 2007 4.502.1 S 7.1% (3.145.6) (248.1) (148.6) (3.542.3) 959.8 21.3% (1.9) 957.9 (383.2) 574.8 574.8 S 1.94 S 13.1% 1.356.6 S 30.1% 8.4% 20.6 (317.8) 7.1% 2008 4,766.7 S 5.9% (3.338.4) (260.5) (135.0) (3.734.0) 1,032.7 21.7% 8.1 1,040.8 (416.3) 624.5 624.5 S 2.10 S 8.7% 1,428.3 S 30.0% 5.3% 15.6 (311.5) 6.5% 2009 5,047.0 5.9% (3.548.8) (273.5) (113.9) (3.936.2) 1.110.8 22.0% 18.1 1,128.8 (451.5) 677.3 677 3 2.28 8.5% 1,498.2 29.7% 4.9% 9.7 (328.1) 6.5% 20#22CONFIDENTIAL Iverson Preliminary Valuation Summary Iverson Enterprise Valuation Comparable Transaction Analysis (5 in millions) CY2004 PF Revenues CY2005 Revenues CY2004 PF EBITDA CY2005 EBITDA CY2004 PF Unlevered NI CY2005 Unlevered Ni $7,000 $6,500 $6,000 $5,500 $5,000 $4.500 $4,000 $3,500 $3,000 $2,500 Statistic $2.562 $2.610 $547 $585 $207 $236 Comparable Company Analysis 1.6x 1.6x 7.7% 7.2x 20.3x 17.8x $5,300 $4,200 2.1x 2.0x 9.7x 9.1x 25.6x 22.5 $6,000 $4,700 1.8x 1.8x 8,6x 8.0x 22.7x 19.9x 2.3x 2.3x 11.0x 10.2x 28.9x 255, Discounted Cash Flow Analysis $6,600 $5,300 2.1x 2.0x 9.7x 9.1x 25.6x 225 2.6x 2.5x 12.1x 11.3x 31.8x 28.0x Enterprise value defined as the total value of Iverson's business as a going concem, excluding any non-operating and financial assets and liabilities All Iverson financial information provided by the managements of Solar and Iverson. 2004 eperating statistics pro forma for OSSL, Vivista, integrity and RRI acquisitions CREDIT FIRST SUISSE BOSTON 21#23CONFIDENTIAL Iverson Financial Projections ($ in millions) Revenue % Growth Costs and expenses. Operating Addi SG&A Depreciation and amortization Amort of aquisition intangibles Total costs and expenses Operating income % Margin EBITDA % Margin Working Capital Changes Capital Spending % Revenue $ CREDIT FIRST SUISSE BOSTON 2004 2,3642 S 42.6% (1,854 4) (75.5) (982) (2,028.1) 336.1 14.2% Source: Solar Management (1) Proforma for OSSI, Vivista. Integrity and RRI acquisitions 509.8 $ 21.6% 41.7 (65.4) 2.8% 2004P(¹) 2,561.9 $ 345.6 13.5% 547.1 $ 21.4% 2005 2,609.7 $ 2,813.2 S 1.9% 7.8% (2,024.2) (73.5) (119.1) (2,216.9) 392.8 15.1% 585.5 $ 22.4% 2006 (27.1) (103.4) 4.0% (2,137 2) (77.6) (1284) (2,343.1) 470.1 16.7% 676.1 S 24.0% (34.4) (98.3) 3.5% 2007 3,036.7 S 7.9% (2,271.9) (81.0) (119.1) (2.472.0) 564.7 18.6% 764.8 S 25.2% 13.9 (98.0) 3.2% 2008 3,228.1 $ 6.3% (2,404.8) (85.1) (105.5) (2,595.4) 632.7 19.6% 823.2 $ 25.5% 14.6 (80.7) 2.5% 2009 3,431 4 6.3% (2,550 8) (89.3) (84.4) (2,7246) 706.9 20.6% 880.6 25,7% 15.3 (85.8) 2.5% 22#24CONFIDENTIAL Iverson Comparable Company Analysis Sin millions, except per share amounts) COMPANY (FYE) Solar Street (Dec.) Iverson Street (Dec.) Financial Services ADP (Jun) Fiserv (Dec.) DST Systems (Dec ) SEI Investments Co. (Dec.) Bisys (Jun.) Median Mean Securities Trading CME (Dec.) Factset (Aug.) Archipelago (Dec) Espeed (Dec.) Median Mean Source: Wall Street equity research. CREDIT FIRST SUISSE BOSTON Stock Price 1/27/05 $26.43 NA $43.16 39.56 48.95 36.73 15.04 $209.90 51.80 18.22 9.99 ($ in millions) CY05 Revenue CY05 EBITDA FD Capitalization Equity Market Value $7,842 NA $25,571 7.915 4.141 3,980 1.820 $7.167 1.773 981 575 CY05 Unlevered NI Aggr. Market Value $8,150 NA $24,051 8.185 4.082 3.757 2076 $6,884 1.705 804 352 Statistic $2,610 $585 $236 P/E Multiple CY04 18.9x NA 750 20.8x 21.6x 73100 20.9x 21.6x 22.7x 325 28.8x 17,9 19.2x 24.0x 24.6x 2.0x 7.5x CYOS 16598 ΝΑ 21.4x 18.1x 18.8x 21.4x 1950 1950 19.8x 27.3x 24.9x 16.7x 21.3x 23.1x 225x Range 2.5x 9.5x Revenues CY04 CYOS FD Aggregate Value / 2.3x 2.2x NA NA 3.0x 2.7x 2.4x 22x 2.4x 22x 5.5x 5.1x 1.9x 1.9x 2.4x 2.2x 3.0x 2.8x 9.3x 17.0x 22.0x Enterprise Value Reference Range 8.1x 5.3x 1.4x 1.5x 22x 2.1x 4.2x 3.7x 4.8x 4.3x EBITDA CY04 CYOS 7.8x 7.2x NA ΝΑ 13.3x 11.3x 10.0x 9.2x 8.3x 74x TEL 15.2x 8.9x 9.1x 10.0x 9.2x 11.4x 10.4x 16.2x 13.7x 15.4x 11.9x 8.1x 77x 5.2x 5.8x 11.7x 9.8x 11.2x 9,8x Implied Enterprise Value $5,219 $6.524 $4.391 $4,007 $4,200 - Operating Statistics Revenue Growth 04-'05 - $5.562 $5.185 $5.300 5.6% 6.2% 11.8% 5.4% 6.5% 8.1% 3.0% 6.5% 7.2% 14.4% 18.4% 3.2% 2.1% 8.8% 9.5% CYOS CY2005 EBIT PE/ LTGR Margin 21.0% 17.9% 19.9% 19.3% 21.0% 30,9% 14.8% 19.9% 21.2% 52.6% 35.0% 14.8% 24.8% 29.9% 31.8% 1.2x NM 2.0x 1.1x 1.5x 1.3x 1.4x 1.4x 1.4x 1.5x 2.1x 1.7x 1.8x 23#25CONFIDENTIAL Iverson Comparable Acquisitions Analysis (Sin miliona) Date Anne. Target /Acquiror 12/16/2004 BHC Investments/Fidelity Investments 10/20/2004 Equi Serve/Computershare 09/09/2004 Intercept/ Fidelity National 07/13/2004 National Processing / Bark of America 06/08/2004 Refco/Thomas H. Lee Partners 05/25/2004 Brut LLC/Nasdaq Stock Market 05/17/2004 NYCE/Metavate 04/06/2004 Barra/Morgan Stanley 04/05/2004 Tradeweb/Thomson Financial 02/09/2004 Aurum Technology/ Fidelity National 12/10/2003 SCT/Sungard 04/02/2003 Concord/ First Data 03/14/2003 InterPay (Fleet Boston)/ Paychex 01/29/2003 Altel Financial Services/Fidelity National 01/08/2003 Pershing / Bank of New York 11/14/2002 ECS Consumer Network Services/Fiserv 08/05/2002 BrokerTec Trading Operations/ICAP 06/10/2002 Island ECN/Instinct 04/29/2002 HNC Software/Fair, Isaac 06/14/2001 NYCE/ First Data 05/07/2001 NOVA Corp (GA)/US Bancorp Median Mean Source: SDC, company press releases and Wall Street equity research. (Sin millions) CREDIT FIRST SUISSE BOSTON CY04 PF Revenue CY04 PF EBITDA CY04 PF Unlevered NI Statistic $2,562 $547 $207 FD Equity Value $385.0 $365.0 423.3 1,425.0 2.250.0 190.0 810.0 816.4 NA 305.0 596.4 7,448.3 155.0 1,050.0 2.000.0 320.0 291.0 503.0 830.0 585.0 2,136.3 2.0x 90x FD Agg Value $385.0 $365.0 435.5 1,136.0 2,250.0 190.0 610.0 009.0 435.0 305.0 502.5 6,055.1 155.0 1,050.0 2,480.0 320.0 291.0 549.0 682.4 505.0 2.349.8 Range 2.5x 2004 tubes gro torna tor OSS into, Vista integy and RR angustions 12.0x Revenue LTM FY1+ 3.8x 1.0x 2.2x 2.3x 2.3x 1.2x 4.3x 4,0x 1.6 1.9x 5.3x NA 1.3k 3.1x NA 3.0 3.1x 2.9x 5.0k 1.5xx 2.6x 2.8x 200x 25.0x Enterprise Value Reference Range Aggregate Value EBITDA LTM FY1 LYM FY1+ NA NA NA 3.5x NA NA NA 20x 19.4x 11.1x NA NA NM NA 20.1x 2.1x 10 9.3x 13.1x 11 NA NA NA 9.0x NA NA 1.4x 9.7x 3.8x 12-2x Th NA 1.5K NA NA NA NA 9.5x 12.1x 11.4x 10.7x 13.0x 12.0x NA NA NA 40.1x NA 9.0x NA NA 21.9 1.7x 4.3k NA 10.9x 10.8x 16.4x 17x 12.7x 1 NA 3.1x NA NA NA NA NA 7.0x NA 28x NA NA NA NA 21x NA NA 2.9x NA 2.1x 26x 4.0x NA NA 13 Bx 8.7x 13.4x 9.6x 13.4x 12.6x 1.4x 11.8x 10.0x 19.9x 16.4x NA NA 13.4x 8.8x 16.8x 9.6x 2.1x 10.8x 2.5x EBIT NA NA 17.6x NA 28.8x 23.4x 11.8x $4.148 $4.700 15.1x 40.4x Implied Enterprise Value $5,124 56,405 $4.924 - 56.566 $5.185 56.000 P/E LTM FY1 NA NA NM 25.7x NA NA NA 23.0x NA NA 28.x 24.8x 21.8x 19.7x NA NA NA NM NA 31.2x 52.4x 72,2x 26.tx NA NA 31.0x 23.8x NA NA NA 22.8x NA 26.1x 33.6x NA NA NA NM NA NA 389x 44.2x 22.9x 23.8x 7.50 24#26CONFIDENTIAL Iverson Discounted Cash Flow Analysis Discounted Cash Flow Matrix (in millions) Discount Rate 11.5% CREDIT FIRST SUISSE BOSTON 12.5% 13.5% EBITDA Margin Improvement Terminal EBITDA Multiplel 2009) 9.0x 8.0x $1.500 4.055 $5.648 10.3x $1.520 3.909 $5,429 9.9x $1.481 3.740 5.221 9.5x 0.0% 0.5% 1.0% 1.5% 2.0% $1,560 4.599 $6,159 11.3x $1,520 4.398 $5.918 10.8x $1.481 4,206 5,689 10.4x 10.0x $1,560 5.110 $6.670 12.2x 0.0% $5,918 $6,022 $6,126 $6,230 $6,335 $1,520 4,857 $6,407 $1,481 4,675 6,156 11.3x Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value Implied Enterprise Value/2004 PF EBITDA Multiple Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value implied Enterprise Value/2004 PF EBITDA Multiple Present Value of Free Cash Flow (2005-2005) Present Value of Terminal Value Enterprise Value implied Enterprise Value/2004 PF EBITDA Multiple Growth and Margin Sensitivity Revenue Growth Improvement 0.5% $6,012 $6,118 $6,224 $6,330 $6,436 1.0% $6,108 $6,216 $6,324 $6,432 $6,540 1.5% $6,205 $6,315 $6,425 $6,534 $6,644 Note: % increase in EBITDA margin applies to 2009: each year assumes a fifth of the % increase in margin until 2009 Note: Assumes midpoints of the discounted cash flow matrix for discount rate (12,5%) and terminal EBITDA multiple (9.0x). 2.0% $6,303 $6,415 $6,527 $6,638 $6,750 25#27CONFIDENTIAL Allen Preliminary Valuation Summary Allen Enterprise Valuation Comparable Transaction Analysis $5,800 (5 in millions) CY2004 PF Revenues CY2005 Revenues CY2004 PF EBITDA CY2005 EBITDA CY2004 PF Unlevered Ni CY2005 Unlevered NI $6,000 $5,500 $5,000 $4.500 $4,000 $3,500 $3,000 $2,500 $2.000 Statistic $1.258 1.329 544 567 216 232 Comparable Company Analysis 2.9x 2.7x 6.6x 16.7x 155 $4,600 $3,600 . 3.7x 3.5x 8.4x 8.1x 21.3x 19.9x $4,600 3.7x 3.5x 8.4x 8.1x 21.3x 19.9x . 4.6x 4.4x 10.7x 10.2x 26.9x 25.0x Enterprise value defined as the total value of Allen's business as a going concem, excluding any non-operating and financial assets and labates. All Allen financial information provided by the managements of Soler and Alen. 2004 operating statistics pro forma for Infow acquisition CREDIT FIRST SUISSE BOSTON Discounted Cash Flow Analysis $4,300 $3,400 2.7x 2.6x 6.2x 6.0x 15.8x 14.7x 3.4x 3.2x 7.9x 7.6x 19.9x 18.6x 26#28CONFIDENTIAL Allen Financial Projections ($ in millions) Revenue % Growth Costs and expenses: Operating Add'l SG&A Depreciation and amortization Amort of aquisition intangibles Total costs and expenses Operating income % Margin EBITDA % Margin Working Capital Changes Capital Spending % Revenue Source: Solar Management (1) Pro forma for inflow acquisition CREDIT FIRST SUISSE BOSTON 2004 S 1,191.6 S 1.8% S (655.1) (1426) (20.7) (818 5) 373.2 31.3% 536.6 $ 45.0% (0.4) (171.5) 14.4% 2004PF 1,258.1 S 359.5 28.6% 544.4 S 43.3% 2005 1,329 3 S 5.7% (762.0) (151.5) (29.6) (943 1) 386.2 29.1% 567 3 S 42.7% (20.0) (197.4) 14.9% 2006 1,392.0 $ 4.7% (816.4) (158.7) (29.6) (1.004.7) 387.3 27.8% 575.6 $ 41.3% 10.9 (208.8) 15.0% 2007 1,465 4 S 5.3% (873.7) (167.0) (29.6) (1.070.3) 395.1 27.0% 591.7 $ 40.4% 6.7 (219.8) 15.0% 2008 1,538 6 S 5.0% (933 6) (175.4) (29.6) (1,138.6) 400.0 26.0% 605.0 S 39.3% 1.1 (2308) 15.0% 2009 1,615.6 5.0% (997.9) (184.1) (29.6) (1.211.7) 403.9 25.0% 617.6 38.2% (5.6) (242.3) 15.0% 27#29CONFIDENTIAL Allen Comparable Company Analysis 15 in millions, except per share amounts) COMPANY (FYE) Solar Street (Dec.) Allen Street (Dec.) Business Continuity Services IBM (Dec.) HP (Oct.) Accenture (Aug.) EDS (Dec.) CSC (Mar.) ACS (Jun) Median Mean S&P 500 Industry Indexes Industrials Utilities Median Mean Source: Wall Street equity research. CREDIT FIRST SUISSE BOSTON Stock Price 1/27/05 $26.43 ΝΑ $91.98 19.49 25.68 21.14 50.69 53.85 NA NA CY05 Revenue CY05 EBITDA CY05 Unlevered NI FD Capitalization Equity Market Value $7,842 ΝΑ $156,741 57,207 24.783 10,952 9,778 6.909 NA NA Aggr, Market Value $8,150 ΝΑ $169,041 51,367 23,068 11.151 11,800 7.133 NA NA Statistic $1.329 $567 $232 P/E Multiple CY04 18.9x 105 NA 18.4x 14.4x 18.8x NM 16.7x 19.0x 18.4x 17.4x 21.3x 17.4x 19.4x 19.4x 2.0x CY05 6.5x ΝΑ 16.4x 11.8x 18.9x 14 1 15.6x 10.0x 17.6x 18.6x 16.7x 10.7x Range 3.0x 8.5x Revenues CY04 CY05 FD Aggregate Value/ 2.3x 2.2x NA ΝΑ 1.8x 0.0x 00x 1.8x 1.4x 0.5K 0.7x 1.7x 1.2x 1.2x NA NA NA NA 15.0x 19.0x Enterprise Value Reference Range 0.8x 0.7x 1.5x 1.1x NA NA NA NA EBITDA CYOS CY05 7.8x 7.2x ΝΑ ΝΑ 10.2x 9.6x 6.9x 6.2x 10.6x 9.7x 4.2x 4.7x 5.7x 4.8x 8.7x 7.2x 7.8x 6.7x 7.8x 7.0x NA NA NA NA Implied Enterprise Value $2,659 $3.988 $3.687 $3,476 $3,600 NA NA NA NA - $4.822 $4.403 $4,600 Operating Statistics Revenue CY05 CY2005 Growth EBIT PE/ 04-05 Margin LTGR 4.3% 5.9% 7.6% 12.9% (4.9%) 9.0% 7.5% 7.8% 4.3% 6.1% 6.1% 21.0% 31.3% 13.3% 6.7% 13.0% 3.9% 6.7% 15.6% 9.9% 9.9% 16.8% 19.4% 18.1% 18.1% 1.2x NM 1.8x 1.1x 1.2x 3.0x 1.3x 0.9x 1.3x NA NA NA NA 28#30CONFIDENTIAL Allen Comparable Acquisitions Analysis (Sin millions) Date Annc. Target / Acquiror 11/17/2004 Inflow / SunGard 08/09/2004 Synstar PLC/Hewlett Packard 07/13/2004 National Processing/Bank of America 03/14/2004 EDS-PLM Solutions/Consortium 03/10/2004 American Mgmt Systems / CGI Group 02/23/2004 Triaton GmbH/Hewlett-Packard 04/02/2003 Concord / First Data 11/14/2002 EDS Consumer Network Services / Fiserv 04/26/2002 Guardian IT / SunGard 10/15/2001 Comdisco Availability Sofns/SunGard 07/19/2001 Lockheed Martin IMS / Affiliated Computer CREDIT FIRST SUISSE BOSTON (3 in millions) Median Mean Source: SDC, company press releases and Wall Street equity research. CY04 PF Revenue CY04 PF EBITDA CY04 PF Unlevered NI FD Equity Value Statistie 182.0 293.4 1,425.0 2,050.0 858.0 426.0 7,448.3 320.0 82.0 850.0 825.0 (1) 2004stusos pro forma ton acquation $1.258 $544 $216 FD Agg Value 185.0 340.6 1.136.0 2.050.0 858.0 426.0 6,055.1 320.0 2420 850.0 837.0 3.0x 8.0x Range Revenue LTM FY1 2.8x 0.9x 0.8x 2.3x 2.4x 0.9x 0.9x 5.3x NA 1.5x 1.9x 1.3x 1.7x 2.0x 3.5x 11.0x 2.2x 20.8x NA 2.1x 195 NA 0.8x NA ΝΑ 4.3x 10.8x 2.1x NA 1.4x 5.5x NA 8.6x ΝΑ NA 2.1x 2.0x 22.0x 26.0x Enterprise Value Reference Range Aggregate Value / EBITDA EBIT LTM FY1+ LTM FY1+ 7.2x NA 9.3x NA 9.5x NM 14.5× 27.2x 15.4x 13.1x 19,5 13.7x NA 24.1x 18.7x NA 9.8x NA NA 12.7x NA 14.9x ΝΑ 11,5x ΝΑ 10.6x 4.7x NA NA ΝΑ 14.6x 10.5× 10.9x Implied Enterprise Value $3.774 $4,404 $4.355 9.3x 14.6x 8.1x 17.2x 54.745 $4.600 - $5.988 $5.605 $5.800 ΝΑ ΝΑ 13.0x 13.7x PIE LTM FY1+ ΝΑ ΝΑ NA NA 25.7x NA 35.3x 23.8x NA 31.3x NA 19.7x NM NA 21.8x NM NA 11.9x ΝΑ ΝΑ ΝΑ ΝΑ 25.7x 21.8x 27.6x 21.7x 29#31CONFIDENTIAL Allen Discounted Cash Flow Analysis Discounted Cash Flow Matrix CREDIT FIRST SUISSE BOSTON (Sin millions) Discount Rate 10.5% 11.5% 12.5% EBITDA Margin Improvement Terminal EBITDA Multiple(2009) 8.5x 9.5x 7.5x $807 2.812 $3.619 6.6x $787 2.688 $3.475 6.4x $768 2.571 3.339 6.1x 0.0% 0,5% 1.0% 1.5% 2.0% $807 3.187 $3,994 7.3x $787 3.046 $768 2.913 3,682 6.8x $807 3.562 $4,369 8.0x $3.834 $4.192 7.0k 7.7x $787 3,405 0.0% $3,834 $3,883 $3,932 $3,981 $4,030 $765 3.256 4,024 7.4x Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value impiled Enterprise Value/2004 PF EBITDA Multiple Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value implied Enterprise Valbue/2004 PF EBITDA Multiple Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value Implied Enterprise Value/2004 PF EBITDA Multiple Growth and Margin Sensitivity Revenue Growth Improvement 0.5% $3,896 $3,946 $3,996 $4,046 $4.096 1.0% $3,960 $4,010 $4,061 $4,112 $4,163 1.5% $4,024 $4,076 $4,127 $4,179 $4,231 Note: % increase in EBITDA margin applies to 2009; each year assumes a fifth of the % increase in margin until 2009 Note: Assumes midpoints of the discounted cash flow matrix for discount rate (11.5%) and terminal EBITDA multiple (8.5x). 2.0% $4,089 $4,142 $4,194 $4,247 $4,299 30#32CONFIDENTIAL Illustrative Stock Price Performance - Break Even Discount Rate Analysis Using a 16.5x Multiple DISCOUNT RATE REQUIRED FOR A PV OF $35.00 PER SHARE Future Value based on Base Case Discount Rate Required For a $35.00/share Future Value based on Base Case +2% Per Annum Discount Rate Required For a $35.00/ share Future Value based on Base Case -2% Per Annum Discount Rate Required For a $35.00/share 2006 CREDIT FIRST SUISSE BOSTON $26.43 $28.29 $26.43 2006 $26.43 -19.2% $28.82 -17.7% $27.76 -20.7% 2007 $32.00 -4.4% $33.17 -2.6% $30.85 Note: Future values calculated using the current 1-year forward calendar P/E of 16.5x and a current stock price of $26.43 as of 1/27/06 -6.1% 2008 $34.77 $37.71 -0.2% 2009 1.6% $36.71 $40.55 1.9% -2.0% 3.7% $32.90 $35.02 0.0% 31#33CONFIDENTIAL Illustrative Stock Price Performance - Break Even Discount Rate Analysis Using a 19.6x Multiple DISCOUNT RATE REQUIRED FOR A PV OF $35.00 PER SHARE Future Value based on Base Case Discount Rate Required For a $35.00 / share Future Value based on Base Case +2% Per Annum Discount Rate Required For a $35.00/share Future Value based on Base Case -2% Per Annum Discount Rate Required For a $35.00/share 2006 CREDIT FIRST SUISSE BOSTON 2006 $26.43 $33.57 $26.43 -4.1% -2.3% $26.43 $34.20 $39.36 $32.94 -5.9% 2007 $37.97 Note: Future values calculated using the 3-year average 1-year forward P/E of 19 6x and a current stock price of $26.43 as of 1/27/05 4.2% 6.0% $36.60 2.3% 2008 $41.25 $44.74 5.6% 2009 7.6% $43.56 $48.11 6.3% 3.7% 8.3% $39.04 $41.56 4.4% 32#34CONFIDENTIAL Cost of Equity Analysis Assumptions Tax Rate Risk Free Rate (20 year) KTO Equity Risk Premium Industry Statistics CREDIT FIRST SUISSE BOSTON SDS ADP FISV DST SEIC CME BSG FDS IBM HPQ ACN EDS CSC ACS 40.00% 4.43% 7.20% Beta (3) 1.11 0.91 0.97 0.99 1.25 1.47 1.12 1.13 1.01 1.25 1.12 1.20 1.08 1.11 Cost of Equity Cost of Equity Debt/ Mkt Eq. 6.6% 0.3% 9.1% 32.9% 0.7% 0.0% 22 0% 0.0% 14.6% 12.5% 4.6% 43.3% 24.2% 3.8% 12.5% Risk Free Rate + Beta "Equity Risk Premium = 4.43% + 1.05*7.2% = 12.0% (4) Levering Factor: 1 [(1-tax rate) (debt/equity ratio)] (5) Unlevered Beta: (Beta/Levering Factor) (6) Cost of Equity: Rf B(Rm Rf) - Size Premium. Levering Factor 1.04 1.00 1.05 1.20 1.00 1.00 1.13 1.00 1.09 1.07 1.03 1.26 1.15 1.02 Average (1) Interpolated yield on the 20-year US. Treasury bond (1/25/05) (2) The average historic spread between the return on stocks and I-t bonds (Ibbotson Ass.) (3) Barra U.S. Equity Beta Bock predictions Unlevered Beta 1.05 0.90 0.92 0.83 1,24 1.47 0.99 1.13 0.93 1.17 1.09 0.95 0.94 1.09 1.05 Cost of Equity 12.1% 10.9% 11.0% 10.4% 13.4% 15.0% 11.5% 12.6% 11.1% 12.8% 12.2% 11.3% 11.2% 12.3% 12.0% 33#35CONFIDENTIAL These materials have been provided to you by Credit Suisse First Boston ("CSFB) in connection with an actual or potential mandate or engagement and may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with CSFB In addition, these materials may not be disclosed, in whole or in part, or summarized or otherwise referred to except as agreed in writing by CSFB. The information used in preparing these materials was obtained from or through you or your representatives or from public sources. CSFB assumes no responsibility for independent verification of such information and has relied on such information being complete and accurate in all material respects. To the extent such information includes estimates and forecasts of future financial performance (including estimates of potential cost savings and synergies) prepared by or reviewed or discussed with the managements of your company and/or other potential transaction participants or obtained from public sources, we have assumed that such estimates and forecasts have been reasonably prepared on bases reflecting the best currently available estimates and judgments of such managements (or, with respect to estimates and forecasts obtained from public sources, represent reasonable estimates). 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For this purpose, the tax treatment of a transaction is the purported or claimed U.S. federal income tax treatment of the transaction and the tax structure of a transaction is any fact that may be relevant to understanding the purported or claimed U.S. federal income tax treatment of the transaction CSFB has adopted policies and guidelines designed to preserve the independence of its research analysts. CSFB's policies prohibit employees from directly or indirectly offering a favorable research rating or specific price target, or offering to change a research rating or price target, as consideration for or an inducement to obtain business or other compensation CSFB's policies prohibit research analysts from being compensated for their involvement in investment banking transactions except to the extent such participation is intended to benefit investor clients. CREDIT FIRST SUISSE BOSTON 34