#1PROJECT SOLAR CREDIT FIRST SUISSE BOSTON WIT 93719 16389 BOARD MATERIALS CONFIDENTIAL | DECEMBER 14, 2004 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 SUSSEFIRST DOSTON#2CONFIDENTIAL Table of Contents 1 Situation Overview and Saturn Proposal 2 Preliminary Financial Analysis Appendix A B C CREDIT FIRST SUISSE BOSTON Overview of Saturn Solar Transaction Matrix Valuation Details 1#3CONFIDENTIAL Situation Overview and Saturn Proposal CREDIT FIRST SUISSE BOSTON T 00 83583 612560 2#4CONFIDENTIAL 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 to Solar's Board of Directors: CSFB was subsequently instructed by Solar's Board to communicate to Saturn that their 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 • In order to get to the high end of the range, Saturn stated that they would need to meet management and better understand the business and its value drivers On December 2, 2004, CSFB communicated the second offer to Solar's Board. The Board subsequently approved Solar management and CSFB to meet with Saturn to understand their proposal and provide preliminary information (1) Closing Solar share price on November 18, 2004 was $26.57 CREDIT FIRST SUISSE BOSTON 32#5CONFIDENTIAL Overview of Saturn Proposal Equity Purchase Price Transaction Share Price % premium Common Shares (MM) Common Stock Purchase Price Net Options (MM) Option Value FD Shares Total Equity Purchase Price $33.00 24.7% CREDIT FIRST SUISSE BOSTON 288.4 $9,517 13.7 $453 302.1 $9.970 $35.00 32.3% 288.4 $10,094 (1) Assumes 50% of "in-the-money" options are rolled over into the transaction Source: Saturn Presentation to Management on December 6, 2004 15.3 $535 303.7 $10.629 Sources & Uses Sources Bank Debt High Yield Debt Total Debt Sponsor Equity/Roll Options ( Total Sources Uses Purchase Common Stock Net Option Value Cash from Balance Sheet Retire Existing Debt Deal Fees & Expenses Total Uses Total Debt/2004E EBITDA Transaction Price $33.00 $3.200 3,093 $6,293 $4,026 $10,318 $9,517 453 (387) 559 176 $10.318 6.0x $35.00 $3,200 3,093 $6,293 $4,690 $10,983 $10,094 535 (387) 559 183 $10.983 6.0x#6CONFIDENTIAL Historical Stock Price Analysis Daily from December 9, 1999 to December 9, 2004 Share Price $40 $35 $30 $25 $20 $15 $10 $5 $0 12/9/99 8/26/00 CREDIT FIRST SUISSE BOSTON Price High (3/19/02) Low (12/17/99) Average 5/14/01 $34.89 11.25 24.23 1/30/02 10/18/02 Volume Solar Volume(MM) High (7/19/02) Low (11/26/04) Average 32.322 0.232 1.524 7/6/03 3/23/04 $35.00 $33.00 35,000 Days Closed at or Above $33.00 $34.00 $35.00 30.000 25,000 20,000 15,000 10,000 5,000 0 12/9/04 13 8 0 Volume in Thousands 5#7CONFIDENTIAL Solar Preliminary Timetable Week 0 ➤ Initial Due Diligence Milestone 1: Saturn delivers interest letter ▸ Saturn (4 weeks) commences due diligence with mgmt (exchange of non-public information) ▸ Milestone 2: Saturn confirms interest and delivers detailed term sheet CREDIT FIRST SUISSE BOSTON Formation of Private Equity Syndicate ▸ Saturn approaches potential equity investors and debt financing sources Milestone 3: Private equity investors selected; sponsor group formed Due Diligence and Structuring (4 weeks) Sponsors continue due diligence Sponsors jointly create due diligence package for debt financing sources ► Initial discussions with potential debt financing sources Milestone 4: Sponsors present proposal (including price. terms and structure) to Solar Board ▸ ▸ Negotiation and Financing (4 weeks) Negotiate merger agreement and related documents > Execute definitive transaction documentation 12 Milestone 5: Announce transaction: Regulatory Finalize debt financing commitment letters Finalize sponsor▸ Negotiate group definitive financing agreements Market debt financing ► Receive HSR and any other required regulatory clearance. 24 (12 weeks) ▸ Prepare and file HSR and any other required antitrust notifications ▸ Solar and Sponsor group file requisite SEC filings Closing 25 (<1 week) Close debt financing ▸ Close and fund transaction 6#8CONFIDENTIAL 2 Preliminary Financial Analysis CREDIT FIRST SUISSE BOSTON T 00 83583 612560 7#9CONFIDENTIAL Solar Preliminary Valuation Summary Solar Equity Valuation (Per Share) Comparable Transaction Analysis $37.90 ($11,500) (Sin millions) Price per Share (Enterprise Value) Impiled Multiples Cv2000 Revise CY2005 Rovices CV 2004 ETDA OY 2006 ETDA cr200 revered M CV2005 UN $33.00 $35.00 22 22 Dr 215 CY2004 Revenues CY2005 Revenues CY2004 EBITDA CY2005 EBITDA CY2004 Unlevered Ni CY2005 Unlevered NI CREDIT FIRST SUISSE BOSTON $40.00 25 $35.00 29x 10.x MOX 24% 230 $30.00 $25.00 $20.00 $15.00 Statistic $3.411 3.613 1,045 1.098 430 458 Comparable Company Analysis $31.89 ($9,500) $25.68 ($7,500) 22x 2.1x 7.2x 6.8x 17.4x 16.4x Note: Net Cash of $105MM as of 12/01/04 per Soler management 28x 2.6€ 9.1x 8.7x 22.1x 20.7x $30.36 ($9,000) 2.6x 2.5x 8.6x 8.2x 20.9x 19.7x ə - . . ▼ 3.2x 11.0x 105 26.7x 25.1x Discounted Cash Flow Analysis $38.10 ($10,900) $27.27 ($8,000) 2.3x 22x 7.7x 7.3x 18.6x 175. . 3.2x 3.0 - - 10.4x 9.9 25.3x - 23.8x $35.00 ($10,533) ---$33.00 ($9,866) 8#10CONFIDENTIAL Preliminary LBO Analysis Solar Price of $35.00 per Share (3 in milions, except per share Sources & Uses Sources Cash and Equivalents (¹) Bank Debt High Yield Sponsor Equity Total Sources Uses: Refinance ST Debt (¹) Refinance LT Debt Purchase Solar Equity Cash on Hand (Beginning Bal.) Transaction Expenses Total Uses Credit Analysis ($35.00 per share) EBITDA Bank Debt Total Debt Total Debt/EBITDA EBITDA / Interest Expense Total Debt/Capitalization B CREDIT FIRST SUISSE BOSTON $661 2,612 3,657 4,588 $11,518 $47 10,640 150 175 $11,518 Valuation Price per Share FD Shares (MM) Equity Value Plus: Net Debt Aggregate Value 2004 EBITDA Agg Value/2004 EBITDA 2004PF $1,045 2,612 6,270 6.0x 2.3x 57.7% 2005E $1,098 2,429 6,086 5.5x 2.4x 55.8% 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 (2) Assumes an interest rate of 6.0% and 8.5% for the bank debt and high yield respectively $35.00 304.0 10,640 (108) $10,533 1,045 10.1x 2006E $1,211 2,137 5,795 4.8x 2.7x 53.1% Return Analysis - 2009 Debt: Exit Multiple 9.1x 10.1x 11.1x 12.1x 2007E $1,322 1,727 5,384 4.1x 3.1x 49.5% 2008E $1,389 1,296 4.954 3.6x 3.5x 45.5% IRR (5-year) 12.6% 16.0% 19.0% 21.7% Cash Management projects a year-end 2004 cash balance of $661 (versus $487 as of 9/30/04) $1,459 770 4,428 2009E Management projects a year-end 2004 debt balance of $553 (versus $559 as of 9/30/04) 3.0x 3.9x 40.9% 9#11CONFIDENTIAL Preliminary LBO Sensitivity CREDIT FIRST SUISSE BOSTON IRR Analysis IRR Analysis $33.00 $34.00 Note: Assumes leverage of 6.0x (1) Aggregate value/2004 EBITDA Purchase Price $35.00 $36.00 $37.00 $38.00 $33.00 $34.00 $35.00 $36.00 $37.00 $38.00 Note Assumes an exit multiple of 10.1 (1) Aggregate value/2004 EBITDA Purchase Price Sensitivity 9.1x 16.1% 14.3% 12.6% 11.1% 9.7% Exit Multiple 5.50x 18.1% 16.5% 15.0% 13.5% 12:2% 11.0% 10.1x 19.6% 17.7% 16.0% 14.4% 13.0% 11.6% Leverage Sensitivity 11.1x 22.7% 20.8% 19.0% 17.4% 15.9% 14.5% Entry Leverage Multiple 6.00x 5.75x 18.8% 17.1% 15.4% 14.0% 12.6% 11.3% 19.0% 17.7% 16.0% 14.4% 13.0% 11.6% 12.1x 25.5% 23.5% 21.7% 20.1% 18.5% 17.1% 6.25x 20.5% 18.4% 16.6% 14.9% 13.4% 11.9% Implied Entry Mult, 9.4x 9.8x 10.1x 10.4x 10.7x 11.0x Implied Entry Mult 9.4x 9.8x 10.1x 10.4x 10.7x 11.0x (15 10#12CONFIDENTIAL Potential Sources of Funding LARGE-SCALE INDEPENDENT PRIVATE EQUITY FUNDS FUND LARGEST SIZE TRANSACTION TRANSACTION TOTAL EQUITY (SBN) IN PORTFOLIO SIZE (SBN) CHECK (SBN) 50.3 TRW Automrotive Warner Chico $1.3 Blackstone Group Thomas H. Lee Texas Pacific Group Warburg Pincus KKR Carlyle Group Apollo Welsh Carson Bain Capital CD&R JP Morgan Capital Partners DLJ Merchant Banking Goldman Sachs Capital Partners CVC Note: 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 56.3 $64 Metro-Goldwyn-Mayer $3.3 $5.1 Naico Holding $2.7 $4.1 $7.1 $5.0 $7,1 $2.6 $4.9 $1.6 $3.0 NA 50.5 LARGEST TRANSACTION TRANSACTION TOTAL EQUITY IN PORTFOLIO SIZE($BN) CHECK (SBN) $1.5 50.5 $1.6 $1.1 NA NA $1.6 $1.1 Fomica Corp. NA Saturn fund size is $3.68N Largest transaction is UGS ($2.18N transaction size $1.0BN 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 $3BN of new high yield issuance ► The new issue market is extremely active with $6.9 billion in new issuance for the week ended December 10, 2004 • Year to date 636 deals have priced raising $165 billion in proceeds ▪ November and the first two weeks of December have shown a resurgence in new issue activity ▪ The forward calendar continues to build and currently stands at $5.5 billion ▸ AMG reported $111 million of outflows from High Yield Mutual Funds this past week; however, this is the first week of outflows in the last sixteen weeks 11#13CONFIDENTIAL Appendix CREDIT FIRST SUISSE BOSTON T 00 83583 612560 12#14CONFIDENTIAL Appendix A. Overview of Saturn CREDIT FIRST SUISSE BOSTON 00 83583 612560 13#15CONFIDENTIAL Saturn Founded: 1999 Location: Menlo Park, CA/ New York, NY Fund size: First fund: $2.3BN (fully invested) Second / Current fund: $3.6BN Professionals: 23 Overview Key Executives: * James Davidson- Co-founder Glenn Hutchins - Co-founder Roger McNamee - Co-founder • David Roux - Co-founder Investment Criteria: • Saturn is a private equity firm focused solely on making large-scale investments in leading technology companies The firm prefers equity investments between $100 million to $500 million, investing in businesses with enterprise values ranging between $100 million to $10 billion (Saturn limited partners often co-invest in a transaction) Investment structures include: leveraged buyouts and going-private transactions; spin-offs and carve-outs from larger companies: restructurings and recapitalizations; structured minority investments and strategic stakes; and acquisitions CREDIT FIRST SUISSE BOSTON Date 07/22/04 Current Investments Company THOMSON 04/22/04 NETWORK GENERAL 03/14/04 UGS 03/03/03 FLEXTRONICS 12/01/00 DATEK ONLINE 03/29/00 Seagate 03/22/00 Gartner edward Sponsors Saturn Saturn. Texas Pacific Group Bain Capital Saturn Warburg Pincus Saturn. Integral Capital Partners Advent International, Bain Capital, Saturn Texas Pacific Group August Capital Management, Goldman Sachs Merchant Banking Group, Integral Capital Partners JP Morgan Partners, Saturn Texas Pacific Group Saturn, Integral Capital Partners Transaction Size (SMM) 500 235 2113 200 700 2,001 300 14#16CONFIDENTIAL Precedent Saturn Case Studies Seagate and UGS represent two of the largest technology buyouts in history Business Transaction Announcement Date Capitalization (Sources of Funds) % Fully Diluted Equity Ownership CREDIT FIRST SUISSE BOSTON (1) (2) (3) Seagate Wunde ▸ Leading designer, manufacturer, and marketer of hard disc drives ▸ Saturn and management led going-private leveraged buyout transaction ► March 29, 2000 Total Debt: ▸ Total Equity: ▸ Total Capitalization: ► Debt/Total Cap: ▸ Management (¹) ▸ Saturn. ▶ TPG: ▸ Others: $901M $1,100M $2,001M 45% 32% 30% 20% 18% UGS > Leading provider of CAD/CAM and product lifecycle management software solutions ▸ Leveraged buyout and divisional carve-out of the business from parent (EDS) ► March 14, 2004 ▸ Total Debt.(3) ▸ Total Equity. Total Capitalization: ► Debt/Total Cap ▸ Saturn: ▸ Bain Capital: ▸ Warburg Pincus: ▸ Management (¹) $1,080M $1,033M $2,113M 51% 29% 29% 29% 13% Common stock ownership includes shares purchased by management and treats option as tul shares). Includes affiated funds (not including limited partner co-investors). Seagate transaction size figures include all businesses acquired as part of the buyout. Does not include an additional $95 million of undrawn capacity Includes assumption regarding expected closing working capital adjustment. 15#17CONFIDENTIAL Appendix B. Transaction Matrix CREDIT FIRST SUISSE BOSTON 00 83583 612560 16#18CONFIDENTIAL Transaction Matrix (5 in mitions) Price per Sixers Share FD Shares Cutstanding Implied Equity Value Implied Transaction Enterprise Value Implied Premiums Current (12/09/04) 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) Implied Multiples FY2004 Revenue FY2005 Revenue FY2004 EBITDA FY2005 EBITDA FY2004 EPS FY2005 EPS ETH CREDIT FIRST SUISSE BOSTON Historical Price $27.00 $26.74 $26.52 $25.76 $24.95 $24.42 $31.65 $22.40 Operating Statistics $3,411 3,613 1.045 1,098 $1.41 $1.48 (1) Based on net debt of $100 million per Solar management (2) Per Solar Management Current $27.00 297.1 $8,021 $7,914 1.0% 1.8% 4.8% 8.2% 10.6% (14.7%) 20.5% 2.3x 22x 7.6x 7.2x 19.2x 18.3x $30.00 299 6 $8,989 $8,881 11.1% 12.2% 13.1% 16.5% 20.3% 22.9% (5.2%) 33.9% 2.6x 2.5x 8.5x 8.1x 21.3x 20.3x $31.00 300.5 $9,317 $9,209 14.8% 15.9% 16.9% 20.4% 24.3% 26.9% (2.1%) 38.4% 2.7x 2.5x 8.8x 8.4x 22.0x 21.0x $32.00 3014 $9,645 $9,537 18.5% 19.7% 20.7% 24.2% 28.3% 31.0% 1.1% 42.9% 2.8x 2.6x 9.1x 8.7x $33.00 Premium /(Discount) to Sixers Price 22.2% 25.9% 23.4% 27.1% 24.4% 28.2% 28.1% 32.0% 32.3% 36.3% 35.1% 39.2% 4.3% 7.4% 47.3% 51.8% 22.7x 21.7x 302 2 $9,974 $9,866 $10,199 $34.00 9.4x 9.0x Implied Multiples 2.9x 2.7x 236 22.3x 303.2 304.0 $10,307 $10,640 $10,533 3.0x 2.8x $35.00 9.8x 9.3x 24.2x 23.0x 29.6% 30.9% 32.0% 35.9% 40.3% 43.3% 10.6% 56.3% 3.1x 2.9x 10.1x 9.6x 24.9x 23.7x $36.00 33.3% 34.6% 304 8 305.6 306.3 $10,974 $11,307 $11,640 $10,866 $11,199 $11,532 35.8% 39.8% 44.3% 47.4% 13.7% 60.7% 3.2x 3.0x 10.4x 9.9x $37.00 25.6x 24.4x 37.0% 38.4% 39.5% 43.7% 48.3% 51.5% 16.9% 65.2% 3.3x 3.1x 10.7x 10.2x $38.00 26.3x 25.0x 40.7% 42.1% 43.3% 47,5% 52.3% 55.6% 20.1% 69.6% 3.4x 3.2x 11.0x 1058 27.0x 25.7x 17#19CONFIDENTIAL Appendix C. Valuation Details CREDIT FIRST SUISSE BOSTON 00 83583 612560 18#20CONFIDENTIAL Solar Financial Projections (3 in millions) Revenue % Growth Costs and expenses: Operating Depreciation and amortization Amort of aquisition intangibles Total costs and expenses Operating income % Margin EBITDA % Margin Working capital changes Capital spending % of revenue CREDIT FIRST SUISSE BOSTON 2001 $ 1,981.8 S S (1.399.6) (108.9) (1.575.4) 406.4 20.5% 5822 S 29.4% 64.4 (113.6) 5.7% 2009 2,561.6 $ 2,829.0 S 3,411.4 $ 3,613.4 $ 3,857.8 S 4,1221 S 4,343.9 $ 4,570.9 29.3% 20.6% 5.9% 10,4% 6.8% 5.4% 5.2% 2002 (1,728.2) (1,900.0) (202.6) (220,7) (64.7) (87.5) (1,995.4) 566.2 22.1% 833.5 S 32.5% 147.2 2003 (138.7) 5.3% (2,208.3) 620.7 21.9% 928.9 S 32.8% (29.9) (195.1) 6.9% 2004 (2,366.5) (2158) (118.4) (2,700.7) 710.7 20.8% 1,044.9 30.0% (61.2) (254.3) 7.5% 2005 (2,515.3) (227.1) (114.2) (2,856.6) 756.8 20.9% S 1,098.1 S 30.4% (63.6) (238.4) 6.6% 2006 (2,646.5) (238.6) (108.7) 864.1 22.4% 2007 (2,993.8) (3.151.3) 970 8 23.6% (2,800.6) (251.4) (99.3) (43.9) (230.9) 6.0% 1.2 2008 (242.0) 5.9% (2,954.9) (261.6) (85.7) (3,302.3) 1.041.6 24.0% 1,211.4 S 1,321.5 S 1,389.0 $ 1,450.0 31.4% 32.0% 32.1% 31.9% (3,111.8) (270.1) (63.8) (41.3) (239.7) 5.5% (3.445.7) 1.125.2 24.6% 5.4 (253.8) 5.6% 19#21CONFIDENTIAL Iverson Preliminary Valuation Summary Iverson Enterprise Valuation Comparable Transaction Analysis (5 in millions) CY2004 Revenues CY2005 Revenues CY2004 EBITDA CY2005 EBITDA CY2004 Unlevered Ni CY2005 Unlevered Ni $6,500 CREDIT FIRST SUISSE BOSTON $6,000 $5.500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 Statistic $2.208 $2.352 $517 $548 $208 5227 Comparable Company Analysis 1.6x 1.7x 7.7x 7.3x 19.2x 17.6x $5,000 $4,000 2.3x 2.1x 9,7x 9.1x 24.0x 22.0x $5,800 $4,500 2.0x 1.9x 8.7x 8.2x 21.6x 19.8x 2.6x 2.5x 11.2x 10.6x 27.8x 25.6x Enterprise value defined as the total value of Iverson's business as a going concem, excluding any non-operating and financial assets and liabiles. (1) All Iverson financial information provided by the managements of Solar and Iverson. Discounted Cash Flow Analysis $6,300 $4,600 2.1x 2.0x 8.9x 8.4x 22.1x 20.3x 2.9x 2.7x 12 2x 115, 30.2x 27.8x 20#22CONFIDENTIAL Iverson Financial Projections (in millions) Revenue % Growth Costs and expenses Operating Depreciation and amortization Amort of aquisition intangibles Total costs and expenses Operating income % Margin EBITDA % Margin Working capital changes Capital spending % of revenue CREDIT FIRST SUISSE BOSTON 2001 $ 1,450.4 S (1,089.8) (49.6) (61.1) (1,200.5) 258.9 17.7% S 369.6 S 25.3% 38.5 (72.4) 5.0% 2002 (1,099.9) (1,248.1) (52.9) (61.8) (480) (67.5) (1,200.7) 308 4 20.4% 409 3 S 27.1% 2003 73.1 (42.5) 2.8% 1,509.1 S 1,658.4 $ 2,208.3 $ 2,351.5 $ 2548.4 $ 2,763.2 $ 29423 S 3,126.9 3.4% 33.2% 6.5% 8.4% 9.9% 8.4% 6.5% 6.3% (1,377.4) 281.0 16.9% 410 3 S 24.7% 2004 (28.7) (38.5) 2.3% (1,691.3) (74.8) (97.7) (1.863.8) 344.5 15.6% 517.1 23.4% 2005 (60.7) (90.4) 4.1% 2006 (1,803.6) (1,907.6) (79.5) (65.9) (93.5) (69.1) (1.976.6) (2,0825) 374.9 15.9% 465.9 18.3% S. 547.9 $ 23.3% (65.9) (76.9) 3.3% 2007 640.8 $ 25.1% (50.0) (779) 3.1% (2,035.6) (93.3) (80.2) (2,209 2) 554.1 20.1% 2008 9.7 727.6 $ 781.4 S 26.3% 26.6% (86.3) 3.1% (2,160.9) (99.1) (66.6) (2.326.5) 615.8 20.9% 2009 (33.3) (822) 2.8% (2.287.9) (102.9) (45.5) (2.436.3) 690.6 22.1% 839.0 26.8% 11.7 (91.9) 2.9% 21#23CONFIDENTIAL Iverson Comparable Company Analysis in millions except per share amounts) COMPANY (PYE) Sixers Street (Dec.) Iverson Street (Dec.) Financial Services ADP (Jun) Fiserv (Dec) DST Systems (Dec) SEI Investments Co (Dec) Medan Mean Securities Trading CME (Dec.) Factset (Aug) Espeed (Dec.) Median Mean Source: Wall Street equity research. CREDIT FIRST SUISSE BOSTON Stock Price $27.00 NA $44.92 39.06 49.16 41.41 $219.67 50.20 10 88 ($ in millions) CY04 Revenue CY05 Revenue CY04 EBITDA CY05 EBITDA FD Capitalization Equity Market Value $8,051 NA $25,669 7,812 5,178 4.516 $7,503 1,707 628 CY04 Unlevered NI CY05 Unlevered NI Aggr. Market Value $8,122 ΝΑ $25,603 8,081 4,570 4.293 $7,220 1,508 405 Statistic $2,208 $2.352 $517 $548 $208 $227 PE Muple сто CYOS 19.3x 15.9x NA NA 27.6x 23.5x 20.5 18.2x 21.7x 18.8x 24.1x 21.0x 24.1x 21.0x S 30.0x 28.0 24.1x 19.8x 28.0x 24.1x 27.7x 24.8x 2.0x 2.0x 8.0x 7.5x Revenues CYOA CYUS 2.3x 2.1x NA NA 3.2x 26x 2.9x 3.6x 3.0M 2.fx 2.5x 5.7 Range 2.7k 3.3K 8.8 6.9x 5.0 2.4 5.9x 5.0 6.1x 5.4x 2.5x 2.5x 10.0x 9.5x FD Aggregate Value! EBITDA CYO CYOS 7.8x NA 7.3x NA 14.2x 124K 9.7x 8.6 9.3x 8.2x 18.7x 173. 12.0x 13.0x 10.5 11.7x 17.1x 15.1x 14.2x 125 6.1x 6.4K 14.2x 125x 25 11.3x 18.0x 24.0x 17.0x 22.0x Enterprise Value Reference Range EDIT CYG CYOS 11.5x 10.2x NA NA 17.2x 14.9 12.7x 11.3x 13.7x 11.8 20.3 19.0k 15.4x 13.4. 16.D 14.2x 19.6x 17.0 17.2x 14.6 8.4x 17.2x 14.6 15.1x 13,6x $4,136 $4,109 $3,752 $3,856 $4,000 - Operating Statistics Revenue CY04 CYOS CY2005 Growth EBIT EBIT PE/ 04-05 Margin Margin LTGR - 7.8% 19.9% 10.4% 16.8% Implied Enterprise Value $4,417 $4,703 7.6% 18.6% 10.8% 18.6% 6.5% 19.3% 9.6% 30.8% 8.6% 18.9% 8.6% 21.9% 11.6% 18.6% 4.2% 11.0% $5,521 $5,879 $5,171 $5,205 50.3% 34.4% 29.5% 34.4% 58.1% $5,002 $4.989 $5,000 20.5% 18.3% 19.9% 18.9% 21.0% 30.1% 20.4% 22.5% 51.8% 34.3% 25.8% 34.3% 37.3% NM 2.2x 1.1x 1.4k 1.4x 1.54 2.0M 1.9 1.6 1.8 22#24CONFIDENTIAL Iverson Comparable Acquisitions Analysis (Sin millions) Date Anne. Target /Acquiror 10/20/2004 Equi Serve/ Computershare 10/12/2004 Epsilon Data / Alliance Data Systems 09/09/2004 Intercept/Fidelity National 07/13/2004 National Processing/ Bank of America 08/06/2004 Refco /Thomas H. Lee Partners 05/25/2004 Brut LLC/Nasdaq Stock Market 05/17/2004 NYCE/Motavante 04/06/2004 Barra/Morgan Stanley 04/05/2004 Tradeweb/Thomson Financial 02/09/2004 Aurum Technology/Fidelity National 04/02/2003 Concord / First Data 03/14/2003 InterPay (ReetBoston)/Paychex 01/06/2003 ProBusiness Services/ADP 11/14/2002 EDS Consumer Network Services / Fiserv 08/05/2002 BrokerTec Trading Operations/ICAP 05/10/2002 Island ECN / Instinet 05/14/2001 NYCE/First Data 05/07/2001 NOVA Corp (GA) US Banoorp 07/20/1999 Investor Services Group (FOC)/PNC Median Mean CY04 Revenue CY04 EBITDA CY04 Unlevered NI Source: SDC, company press releases and Wall Street equity research. ($ in millions) CREDIT FIRST SUISSE BOSTON Statistic $2.208 $517 FO Equity Value $208 $307.0 300.0 423.3 1.425.0 2.250.0 190.0 610.0 816.4 NA 305.0 7.448.3 155.0 495.5 320.0 291.0 593.0 555.0 2.0x FD Agg Value 9.0x $307.0 300.0 435.6 1,136.0 2.250.0 2.138.3 2,349.8 1,100.0 1,100.0 190.0 610.0 609.0 435.0 305.0 6.005.1 155.0 442.9 320.0 291.0 546.0 566.0 Range Revenue LTM 1.0x NA NA 2.5x 22x 2.0x 2.3x 2.3x 1.2x 4.3x 4.0x 6.3x NA 26x NA 3.0x 3.1x 5.0x 1.5x 3.3x 2.8x 2.9x 2.5x Aggregate Value! EBITDA FY1+ LTM FY1+ EBIT LTM FY1+ NA NA NA NA 12.0x 19.4x 11.1x 21x 105, 9.3x NA NA NM 13 1x NA 20.1x 115 NA NA 9.0k NA NA NA 31.tx NA NA NA 1.4x 9.7x 9.5x 12.1x 11.4x 38x 12.2x 10.7x 13.0x 12.0x NA 14.5 1.5x NA NA 9.0x NA NA 40.1x 12.7x NA 21.9x 11.50 NA 4.3x 10.8x 3.1x NA 28x NA NA NM 17.2x NM NM 2.1x NA NA NA NA 2.9x NA NA NA 17.8x 2.1x 13.4x NA 15.1x NA 4.6x 16,8x 13.8x 35.2x 23.4x 1.4x 9.6x 8.7x 13.4x 11.8x NA 11.8x NA 17.2x NA 2.3x 12.0x 10.7x 13.4x 12.0x 2.6x 14.1x 19.1x 15.7x 114x 12.0x 20.0x 25.0x Enterprise Value Reference Range $4,653 Implied Enterprise Value $4.417 $5.521 $4,169 $4,500 P/E LTM FY1+ NA NA NA NM 25.7x NA 31.0x 23.8x NA NA NA NA NA NA 23.8x 22.8x NA NA NA NA 21.8x 19.7x NA NA NM NM NM NM NA NA NA 44,2x 22.9x 27.4x - 31.2x 72.2x 26.1x 27.8x 26.1x 32.6x 27.Ax 23.8x $6,205 $5,211 $5.800 23#25CONFIDENTIAL Iverson Discounted Cash Flow Analysis Discounted Cash Flow Matrix Sin millions) Discount Rate 11.0% CREDIT FIRST SUISSE BOSTON 130% 15.0% EBITDA Margin Improvement Terminal EBITDA Multiple(2009) 8.0x 9.0x 10.0x $1.381 3.983 $5.364 10.4x $1.308 3,643 $4.960 9.6x $1,240 3.337 4,577 8.9x 0.0% 0.5% 1.0% 1.5% 2.0% $1,381 4,481 $5,862 11.3x $1.308 $1,308 4,098 4.554 $5.406 $5.861 TOROK 11.3x $1,381 4.979 $6.360 12.3x $1,240 $1,240 3,754 4.171 5.411 1051 9.7x 0.0% $5,406 $5,499 $5,592 $5,685 $5,778 Present Value of Free Cash Flow (2006-2009) Present Value of Terminal Value Enterprise Value Implied Enterprise Value/2004E EBITDA Multiple Present Value of Free Cash Flow (2006-2009) Present Value of Terminal Value Enterprise Value Implied Enterprise Value/2004E EBITDA Multiple Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value Impled Enterprise Value/2004E EBITDA Multiple Growth and Margin Sensitivity Revenue Growth Improvement 0.5% $5,494 $5,588 $5,683 $5,778 $5,872 1.0% $5,583 $5,679 $5,775 $5,872 $5,968 1.5% $5,673 $5,771 $5,869 $5,967 $6,065 Note: % increase in EBITCA margin applies to 2009, each year assumes a 1th of the % increase in margin until 2009 Note: Assumes midpoints of the discounted cash flow matrix for discount rate (13%) and terminal EBITDA multiple (90) 2.0% $5,764 $5,864 $5,964 $6,063 $6,163 24#26CONFIDENTIAL Allen Preliminary Valuation Summary Allen Enterprise Valuation Comparable Transaction Analysis $5,700 (5 in millions) CY 2004 Revenues CY2005 Revenues CY2004 EBITDA CY2005 EBITDA CY 2004 Unlevered Ni CY2005 Unievered NI $6,000 CREDIT FIRST SUISSE BOSTON $5,500 $5,000 $4.500 $4,000 $3,500 $3,000 $2,500 $2,000 Statistic $1.203 1.262 528 550 222 231 Comparable Company Analysis 2.9x 2.8x 6.6x 6.4x $4,500 $3,500 15.8x 15,1x 3.7x 3.6x 8.5x 8.2x 20.3x 1958 $4.500 3.7x 3.6x 8.5x 8.2x 20.3x 1958 4.7x 4.5x 10.8x 10.4x 25.7x 24.7x Enterprise value defeed as the total value of Allen's business as a going concem, excluding any non-operating and financial assets and tables. All Allen financial information provided by the managements of Soler and Alen. Discounted Cash Flow Analysis $4,600 $3,400 2.8x 2.7x - 6.4x 6.2x - 15.3x . 14.7x - 3.8x 3.6x 8.7x 20.8x 19.9x 25#27CONFIDENTIAL Allen Financial Projections (3 in millions) Revenue % Growth Costs and expenses Operating Depreciation and amortization Amort of aquisition intangibles Total costs and expenses Operating income % Margin EBITDA % Margin Working capital changes Capital spending % of revenue CREDIT FIRST SUISSE BOSTON 2001 (3099) (593) (5.8) (374.9) 147.5 28.2% $ 2126 $ 40.7% $ 5224 S 1,0525 $ 1,170.6 $ 1.203.1 101.5% 11.2% 2.8% 25.9 2002 (41.2) 7.9% (628.3) (149.7) (16.7) 257.8 24.5% 424.2 S 40.3% 74.1 2003 (94.2) 9.0% (661.9) (158.9) (20.0) (830.8) 339.7 29.0% 518.7 S 44.3% (1.3) 2004 (156.6) 13.4% (675.2) (141.0) (20.7) (838.9) 366.2 30.4% (0.4) 2005 (163.9) 13.6% (711.7) (147.5) (20.6) (879.9) 527.9 $ 550.2 $ 43.9% 43.6% 382.0 30.3% $ 1.261.9 $ 1,309.4 $ 1,3589 $ 1.4016 S 1,444.0 4.9% 3.8% 3.8% 3.1% 3.0% 2.4 2006 (161.5) 12.8% (738.9) (152.7) (19.6) (911.2) 398.2 30.4% 570.5 S 43.6% 6.1 2007 (153.0) (765.0) (158.1) (19.1) (9422) 416.8 30.7% 593.9 S 43.7% 2008 (8.5) (155.7) 11.5% (794.0) (1626) (19.1) (975.7) 425.8 30.4% 607.5 S 43.3% (7.9) 2009 (157.5) 11.2% (823.9) (167.2) (18.3) (1,009.4) 434.6 30.1% 620.0 42.9% (6.3) (161.9) 11.2% 26#28CONFIDENTIAL Allen Comparable Company Analysis Sin milions except per share amounts) COMPANY (FYE) Sixers Street (Dec.) Allen Street (Dec.) Bersiness Continuity Services IBM (Dec) HP (Od) Accenture (Aug) EOS (Dec.) CSC (Mar) ACS (Jun Median Mean S&P 500 Industry Indexes Industrials Utises Median Mean Source: Wall Street equity research. Stock Price $27.00 NA 507.51 20.87 26.20 22.16 66.21 58.32 NA ($ in millions) CREDIT FIRST SUISSE BOSTON CY04 Revenue CY05 Revenue CY04 EBITDA CY05 EBITDA CY04 Unlevered NI CY05 Unlevered NI FD Capitalization Equity Market Value $8,051 NA $166,615 63,787 25,264 11,124 10,910 7,512 NA NA Aggr. Market Value $8,122 NA $178.905 68,610 23,401 12.306 12,916 7,825 NA NA Statistic $1,203 $1,262 $528 $550 $222 $231 PE Multiple CYOL CYOS 19.3x 16.9x NA NA 19.5x 17.7x 15.5x 13.0x 19.0v 18.2x NM 18.6. 20.6 34.6x 15.4x 16.7x 19.0x 17.2x 18.8x 19.4x 20.9 18.3x 16.7 13.8x 18.3K 16.1x 18.3 16.1x 2.0x 2.0x 7.5x 6.5x Revenues CYOS CY04 2.3x NA 1.8 1.0x 0.7x 0,7x 1,6x 1.5 0.6x 0.6 0.8x 0.8x 1.0 2.1x NA 1.9 1.2x 1.1x 1.2x 1.1K NA NA NA NA Range 11 NA NA NA NA 3.0x 3.0x 8.5x 8.5x FD Aggregate Value EBITDA CYO CYDS NA 10.8x10.4x 7.8x 8.7 10.8x 5.3x 9.7x 4.7x 5.7x 6.3x 9.6x 8.2x 8.6x 7.5 8.4x NA NA 7.3x NA NA NA 17.0x 21.0x 15.0x 19.0x Enterprise Value Reference Range NA NA NA NA EINT CYOU CYOS 113 10,2x NA NA 14.5x 19.3x 10.9 8.6x 12.4x 11,1x 30.0x 18.8x 11.8x 12.8x 10.8x 12.9x 115. 15.0x 12.4x NA NA NA NA $3,959 $3,576 NA NA NA NA $3,767 $3,466 $3,500 Operating Statistics Revenue CYOS Growth EBIT 04-05 Margin - 7.8% 19.9% 2.5% 30.1% Implied Enterprise Value $2,406 $2,524 5.9% 12.0% 4.6% 8.5% 0.5% 8.6% 13.2% 2.0% 6.3% 16.4% 14.7% 7.2% 7.4% 9.6% 8.3% (0.9%) 3.7% 3.7% $3,609 $3,786 $4,487 $4,676 $4,653 $4,391 $4,500 12.9% 17.1% 15.0% 15.0% CYDS CY2005 EDIT PE/ Margin LTGR 20.0% 13.2% 7.7% 13.5% 3,2% 6.5% 14.9% 10.5% 9.0% 14.0% 17.5% 15.8% 15.8% 1.2x NM 1.7x 1.2 1.4x 3.4K 1.5K 1.4K NA NA NA NA 27#29CONFIDENTIAL Allen Comparable Acquisitions Analysis (3 in millions) Date Annc. Target / Acquiror 11/17/2004 Inflow/SunGard 08/09/2004 Synstar PLC/Hewlett Packard 07/13/2004 National Processing / Bank of America 03/14/2004 EDS-PLM Solutions/Consortium 03/10/2004 American Mgmt Systems / CGI Group 02/23/2004 Triaton GmbH/Hewlett Packard 04/02/2003 Concord / First Data 11/14/2002 EDS Consumer Network Services / Fiserv 04/29/2002 HNC Software/Fair, Isaac 04/26/2002 Guardian IT / SunGard 10/15/2001 Comdisco Availability Sol'ns / SunGard 07/19/2001 Lockheed Martin IMS/ Affiliated Computer Median Mean CY04 EBITDA Source: SDC, company press releases and Wall Street equity research. Note: Inflow acquisition multiples per Solar management. ($ in millions) CY04 Revenue CY04 Unlevered NI CREDIT FIRST SUISSE BOSTON Statistic $1,203 $528 FD Equity Value 182.0 293.4 $222 1.425.0 2,050.0 858.0 426.0 7,448.3 320.0 830.0 82.0 850.0 825.0 3.0x 8.0x FD Agg Value 185.0 340.6 1,136.0 2,050.0 858.0 426.0 6,055,1 320.0 662.4 242.0 850.0 837.0 Range Revenue LTM FY1+ 28x 2.2x 20.8x 0.9x 0.8x NA 2.3x 2.1x 105 24x NA 92x 0.8x 11.2x 0.9x 0.9x 5.3x NA NA 4.3x 10.8x NA 2.1x NA 8.8x 29x 2.6x 1.5x 1.4x 5.5x 1.9x NA NA 1.3x NA 8.6x 1.9x 2.1x 3.5x 11.0x Aggregate Value / EBITDA LTM FY1+ 7.2x 15x NM 27.2x ΝΑ 9.3x 13.1x 15.4x 115. NA 18.7x NA 13.7x 9.5x 24.1x ΝΑ ΝΑ NA 9.6x 12.7x 11,5 NA NA NA 40.4x ΝΑ 26.6x 10.6x 4.7x 14.9x NA NA NA NA 2.1x 9.8x 2.0x 10.7x 22.0x 26.0x Enterprise Value Reference Range EBIT $4,223 LTM $4,874 $4.500 NA 14.6x 9.3x 14.8x 14.5x 8.1x 20.1x 15.57 FY1+ Implied Enterprise Value $3,609 $4,211 $5,807 $5,761 $5,700 PIE LTM FY1+ NA NA NA ΝΑ 25.7x NA 35.3x NA 21.8x NM 52.4x NA NA NA 30,5× 33.8x 23.8x ΝΑ 31.3x NA 19.7x NM 38.9x 11.9x NA ΝΑ 23.8x 25.1x 28#30CONFIDENTIAL Allen Discounted Cash Flow Analysis Discounted Cash Flow Matrix CREDIT FIRST SUISSE BOSTON (5 inm Bons) Discount Rate 10.0% 12.0% 14.0% EBITDA Margin Improvement 7.5x $999 2.888 $3,886 7.4x Terminal EBITDA Multiple(2009) 8.5x 9.5x $949 2.639 $3.587 6.8x 0.0% 0.5% 1.0% 1.5% 2.0% $902 2.415 3.318 6.3x $999 3.273 $4.271 8.1x $949 2.991 $3.939 7.5x $902 2.737 3.640 6.9x $999 3.658 $4.656 8.8x 0.0% $3.939 $3,982 $4,025 $4,069 $4,112 $949 3.342 $4,291 8.1x $902 3,059 3.962 7.5x Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value implied Enterprise Value/2004E EBITDA Mutiple Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value Implied Enterprise Value/2004E EBITDA Multiple Present Value of Free Cash Flow (2005-2009) Present Value of Terminal Value Enterprise Value Implied Enterprise Value/2004E EBITDA Multiple Growth and Margin Sensitivity Revenue Growth Improvement 1.0% 0.5% $4,004 $4,069 $4,048 $4.114 $4,092 $4,159 $4,136 $4,180 $4,204 $4,248 1.5% $4,136 $4,181 $4,227 $4,272 $4,318 Note: % increase in EBITDA margin applies to 2009. each year assumes a fifth of the % increase in margin until 2009 Note: Assumes midpoints f the discounted cash flow matrix for scount nate (12%) and terminal i BITDA multiple (8.5xx) 2.0% $4,203 $4,250 $4,296 $4,342 $4,389 29#31CONFIDENTIAL 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). These materials were designed for use by specific persons familiar with the business and the affairs of your company and CSFB assumes no obligation to update or otherwise revise these materials Nothing contained herein should be construed as tax, accounting or legal advice You (and each of your employees, representatives or other agents) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by these materials and all materials of any kind (including opinions or other tax analyses) that are provided to you relating to such tax treatment and structure. 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 30