Pre-IPO Investment Opportunity With Facebook

Opportunity Summary

Deal Overview

Pre-IPO investment opportunity with Facebook

We are presenting a maximum US$25mn pre-IPO investment opportunity with Facebook (“FB”), one of the world’s leading online social platforms founded in 04. A total of 500,000 preferred shares are available at US$50 per share from existing FB employees & one institutional investor for early fundraising purpose.

We have a close relationship with a current institutional shareholder of FB whose based in Asia and has the capability to aggregate FB shares for this exercise. We are the placement agent for this exercise on an exclusive basis.

The proposed price values the firm at US$22.5-23.5bn which translates to 22.5-23.5x FY09E sales. It is about 53% higher than that of Microsoft & Li Ka Shing Foundation when they acquired minority stakes in FB in Oct 07. Yahoo (YHOO.US), Google (GOOG.US) & Tencent (700.HK) are currently trading at 5.2x, 9.2x & 17.0x FY09E sales respectively which, in our view, are not directly comparable given the difference in growth phrase & business nature. FB is at its early stage of high growth development focusing in user maximization while Yahoo, Google & Tencent devote most of their effort to profitability.

In addition, FB is planning a US listing before 1H10E. The firm has recently hired David Ebersman, the former executive VP and CFO of Genentech, the pioneering biotechnology firm recently acquired by Roche, to take the CFO role. We view this as a step closer to the firm’s listing plan. The expected IRR of this pre-IPO investment is estimated to be in the range ofRespond to this opportunity% assuming IPO in September 2010 at US$60 & US$80 per share.