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Page|3

CHILDSQuarterlyUpdate:1Q2012

SectorUpdate:IT/ProfessionalServicesandBPO

IT/ProfessionalServicesComparablePublicCompanyAnalysis

PublicCompanyStockPerformanceIn the last ninemonths, themajorityof theIT/Professional services indices generallyunderperformed the S&P. The twoexceptions are the mid‐market consultingservices segmentand themanagedservicessegment, which are outperforming themarket.

Mid‐MarketConsulting FederalITServices

TheaverageLTMEBITDAmultipleis8.8x,whichislowerthanlastquarter’smultipleof9.5x.

TheaverageLTMEBITDAmultipleis5.5xthisquarter,lowerthanlastquarter’smultipleof6.2x.

ManagedServices VARs/SystemIntegrators

The average LTM EBITDA multiple has decreased to 13.3xfrom13.6xinthefourthquarterof2011.

The average LTM EBITDA multiple is 5.9x, unchanged fromlastquarter.

*Excludedfromaveragecalculations.LTM=LastTwelveMonths.DataobtainedfromCapitalIQ.StockpricesasofMay15,2012

40

50

60

70

80

90

100

110

120

May‐11 Jun‐11 Jul‐11 Aug‐11 Sep‐11 Oct‐11 Nov‐11 Dec‐11 Jan‐12 Feb‐12 Mar‐12 Apr‐12 May‐12

Mid‐MarketConsultingServices FederalITServices ManagedServices VARs/SystemIntegrators S&P500Index

CompanyName StockPrice%of52WkHigh

LTMRevenue

LTMEBITDA

AdvisoryBoardCo. $94.14 95.7% 4.1x * 26.7x *

CIBER,Inc. $3.87 60.9% 0.3x 14.5x

CRAInternationalInc. $20.01 67.1% 0.5x 5.1x

EdgewaterTechnologyInc. $3.86 86.2% 0.4x 4.5x

ExponentInc. $47.42 89.0% 2.1x 9.3x

FTIConsulting,Inc. $31.34 69.6% 1.2x 7.2x

HuronConsultingGroupInc. $32.48 79.5% 1.5x 8.7x

MattersightCorporation $7.85 82.6% 3.8x * NM

NavigantConsultingInc. $12.84 87.8% 1.2x 8.1x

PerficientInc. $12.39 95.7% 1.5x 12.4x

ResourcesConnectionInc. $12.27 84.7% 0.7x 9.2x

SapientCorp. $10.57 65.0% 1.2x 9.9x

TheHackettGroup,Inc. $5.53 84.0% 1.0x 9.6x

TowersWatson&Co. $65.08 95.5% 1.2x 6.8x

Average 81.7% 1.1x 8.8x

EnterpriseValue/

CompanyName StockPrice%of52Wk

HighLTM

RevenueLTM

EBITDA

CACIInternationalInc. $45.95 69.1% 0.5x 4.9x

DynamicsResearchCorp. $6.24 39.3% 0.5x 4.6x

ICFInternationalInc. $22.80 78.0% 0.7x 7.3x

ManTechInternationalCorporation $23.38 50.5% 0.3x 3.3x

NCI,Inc. $4.30 17.7% 0.2x 3.8x

SAIC,Inc. $11.00 62.5% 0.4x 9.1x

OfficialPaymentsHoldings,Inc. $4.71 83.7% 0.3x NM

TylerTechnologies,Inc. $37.06 89.1% 3.6x * 20.2x *

Average 61.2% 0.4x 5.5x

EnterpriseValue/


LTMRevenue

LTMEBITDA

CenturyLink,Inc. $38.63 88.8% 2.5x 6.0x

Equinix,Inc. $163.06 94.6% 5.9x 14.2x

InternapNetworkServicesCorp. $7.21 87.4% 1.8x 10.5x

LimelightNetworks,Inc. $2.64 44.7% 0.8x 116.0x *

RackspaceHosting,Inc. $52.91 87.4% 6.5x 22.4x

Average 80.6% 3.5x 13.3x

EnterpriseValue/


HighLTM

RevenueLTM

EBITDA

AtosS.A. $57.11 91.2% 0.7x 6.5x

BlackBoxCorp. $22.07 66.3% 0.5x 5.6x

CapGeminiS.A. $35.94 68.5% 0.4x 4.6x

DatalinkCorp. $10.77 93.7% 0.4x 8.0x

ePlusInc. $30.42 89.0% 0.3x 5.3x

LogicaPLC $1.06 46.1% 0.4x 5.2x

Average 75.8% 0.4x 5.9x

EnterpriseValue/

Page|4


BPOComparablePublicCompanyAnalysis

PublicCompanyStockPerformanceIn the lastninemonths, theMajorBPOandMid‐Market BPO segments have generallyunderperformed the S&P 500, but havebeguntoshowsomeimprovementinrecentweeks.

MajorBPO Mid‐MarketBPO

TheaverageLTMEBITDAmultipleis9.4xthisquarter,downfromlastquarter’smultipleof10.0x.

The average LTM EBITDA multiple is 8.6x this quarter, adecreasefromlastquarter’smultipleof10.0x.

Teleservices

TheaverageLTMEBITDAmultiplehasdecreasedto4.0xfrom4.3xinthefourthquarterof2011.

*Excludedfromaveragecalculations.LTM=LastTwelveMonths.DataobtainedfromCapitalIQ.StockpricesasofMay15,2012

40

50

60

70

80

90

100

110

120


MajorBPO Mid‐MarketBPO Teleservices S&P500Index


LTMRevenue

LTMEBITDA

Accentureplc $58.93 89.4% 1.2x 7.5x

CGIGroup,Inc. $20.74 85.8% 1.5x 8.1x

CognizantTechnologySolutionsCo $61.20 78.5% 2.5x 12.2x

ComputerSciencesCorporation $26.37 58.7% 0.4x 17.7x

ConvergysCorporation $13.30 93.5% 0.5x 2.3x

EPIQSystems,Inc. $11.12 72.7% 2.3x 9.5x

GenpactLtd. $16.46 90.6% 2.1x 11.7x

InfosysLtd. $44.82 79.8% 3.3x 10.4x

IronMountainInc. $30.20 84.4% 2.8x 9.1x

ITCLtd. $4.29 91.3% 7.9x * 23.7x *

PitneyBowesInc. $13.45 54.1% 1.2x 6.0x

TataConsultancyServicesLimited $22.79 94.7% 4.8x 16.2x

UnisysCorporation $18.03 63.5% 0.2x 1.7x

WiproLtd. $7.52 89.3% 2.5x 12.9x

XeroxCorp. $7.40 68.3% 0.8x 5.6x

Average 79.6% 1.9x 9.4x

EnterpriseValue/


HighLTM

RevenueLTM

EBITDA

AdityaBirlaNuvoLimited $15.01 78.5% 0.9x 3.7x

HCLTechnologiesLtd. $9.09 93.4% 1.7x 10.8x

HexawareTechnologiesLimited $2.23 89.6% 2.0x 9.7x

iGATECorporation $17.92 89.7% 2.0x 9.4x

MphasisLimited $7.33 80.7% 1.2x 6.6x

PatniComputerSystemsLimited $9.62 99.3% 1.4x 8.8x

SatyamComputerServicesLimited $1.28 73.4% 1.0x 6.2x

Syntel,Inc. $58.56 92.2% 3.2x * 10.7x

TechMahindraLimited $11.85 79.9% 1.7x 7.7x

VanceInfoTechnologiesInc. $10.49 37.2% 1.1x 12.6x

Average 81.4% 1.4x 8.6x

EnterpriseValue/


LTMRevenue

LTMEBITDA

ConvergysCorporation $13.30 93.5% 0.5x 2.3x

StarTek,Inc. $2.63 49.7% 0.1x NM

SykesEnterprises,Incorporated $16.24 71.6% 0.5x 4.3x

TeleTechHoldingsInc. $14.87 66.4% 0.6x 5.3x

Average 70.3% 0.4x 4.0x

EnterpriseValue/

Page|5

M&A acomparrelated

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Page|7


HCMComparablePublicCompanyAnalysis

PublicCompanyStockPerformanceOf the HCM segments we track,commercial/multi‐line and healthcare haveconsistentlyperformedtheweakest.IT/professionalstaffingunderperformedtheS&P500formostof2011buthassincerecoveredsignificantly.Over the past year, HRO has significantlytradedinlinewiththeS&P.

Commercial&Multi‐LineStaffing IT&ProfessionalStaffing

The average LTM EBITDA multiple this quarter has stayedconstantat6.7x.

TheaverageLTMEBITDAmultiple is9.8xthisquarterwhichisupfrom9.2xinthefourthquarterof2011.

ExecutiveSearch HealthcareStaffing

The average LTM EBITDA multiple decreased to 4.2x thisquarter,from5.8xinthefourthquarterof2011.

TheaverageLTMEBITDAmultiplehasdecreasedto8.2xfrom9.7xinthefourthquarter.

HROutsourcing HRTechnology

TheaverageLTMEBITDAmultipleis10.1xthisquarterwhichisupfrom8.8xinthefourthquarterof2011.

TheaverageLTMEBITDAmultipleis32.6xthisquarter,downfrom35.9xlastquarter.

*Excludedfromaveragecalculations.LTM=LastTwelveMonths.DataobtainedfromCapitalIQ.StockpriceasofMay15,2012

0

20

40

60

80

100

120

140


C/ML IT/Prof Search HC HRO HRTech S&P500Index


HighLTM

RevenueLTM

EBITDAAdeccoS.A. $40.95 64.3% 0.3x 7.3xKellyServices,Inc. $13.26 68.7% 0.1x 5.1xManpowerGroup $37.61 58.8% 0.1x 4.8xRandstadHoldingNV $29.40 63.4% 0.3x 8.5xTrueBlue,Inc. $16.32 89.6% 0.4x 7.7x

Average 68.9% 0.3x 6.7x

EnterpriseValue/CompanyName StockPrice

%of52WkHigh

LTMRevenue

LTMEBITDA

AnalystsInternationalCorp. $3.80 52.1% 0.2x 3.7xCDICorp. $17.96 96.5% 0.3x 7.8xComputerTaskGroupInc. $13.00 83.7% 0.6x 10.3xKforceInc. $13.84 89.9% 0.4x 23.0xMastechHoldings,Inc. $5.80 92.7% 0.2x 5.2xOnAssignmentInc. $16.23 83.8% 1.1x 11.3xRCMTechnologiesInc. $5.79 98.5% 0.3x 5.4xRobertHalfInternationalInc. $28.98 89.7% 1.0x 11.6xAverage 85.8% 0.5x 9.8x

EnterpriseValue/


HighLTM

RevenueLTM

EBITDACTPartners $6.28 45.2% 0.4x NMHeidrick&StrugglesInternationalInc. $17.73 64.3% 0.5x 4.8xKorn/FerryInternational $13.97 58.3% 0.5x 3.7xAverage 55.9% 0.4x 4.2x

EnterpriseValue/


HighLTM

RevenueLTM

EBITDAAMNHealthcareServicesInc. $6.52 74.5% 0.5x 8.5xCrossCountryHealthcare,Inc. $4.04 50.5% 0.3x 7.9xTeamStaff,Inc. $1.33 40.7% 0.2x NMAverage 55.2% 0.4x 8.2x

EnterpriseValue/


HighLTM

RevenueLTM

EBITDAAutomaticDataProcessing,Inc. $53.11 93.0% 2.3x 10.3xBarrettBusinessServicesInc. $20.51 96.5% 0.4x 23.5xCapitaPLC $10.34 83.3% 2.0x 10.9xInsperity,Inc. $26.08 80.8% 0.2x 4.8xPaychex,Inc. $30.06 91.8% 4.7x 11.1xTowersWatson&Co. $65.08 95.5% 1.2x 6.8xXchangingPLC $1.70 92.0% 0.4x 3.4xAverage 90.4% 1.6x 10.1x

EnterpriseValue/


HighLTM

RevenueLTM

EBITDA51jobInc. $49.26 70.6% 5.3x 14.7xConcurTechnologies,Inc. $62.17 95.0% 8.1x 61.8xDiceHoldings,Inc. $10.38 67.5% 3.3x 8.2xMonsterWorldwide,Inc. $8.69 56.3% 1.0x 7.0xSabaSoftware,Inc. $8.77 66.9% 2.0x NMTheUltimateSoftwareGroup,Inc. $76.93 92.7% 7.0x 71.3xAverage 74.8% 4.5x 32.6x

EnterpriseValue/

Page|8

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Page|9


MarketingandInformationServicesComparablePublicCompanyAnalysis

PublicCompanyStockPerformancePrint/fulfillmentcontinuestounderperformcompared to other segments of the sectorand the S&P. Information services is theonly segment currently outperforming theS&P.

Marketing&Analytics InformationServices

TheaverageLTMEBITDAmultipleisdownfrom7.0xlastquarterto6.5xthisquarter.

TheaverageLTMEBITDAmultipleis8.7xthisquarter,whichisdownfrom9.3xinthefourthquarterof2011.

Print/Fulfillment HealthcareStaffingTheaverageLTMEBITDAmultipledecreasedto6.6x,whichisdownfrom7.8xinthefourthquarterof2011.

LTM=LastTwelveMonths.DataobtainedfromCapitalIQ.StockpriceasofMay15,2012

50

60

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100

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Marketing&Analytics InformationServices Print/Fulfillment S&P500Index


LTMRevenue

LTMEBITDA

AcxiomCorporation $13.46 90.2% 1.0x 4.6x

Harte‐HanksInc. $8.56 83.6% 0.7x 6.7x

Havas $5.18 90.4% 1.1x 7.2x

TheInterpublicGroupofCompanies,Inc. $11.28 87.4% 0.8x 6.5x

MDCHoldingsInc. $28.40 93.4% 1.6x NM

OmnicomGroupInc. $50.45 96.7% 1.2x 7.6x

PublicisGroupeSA $47.95 86.8% 1.1x 6.3x

Average 89.8% 1.1x 6.5x

EnterpriseValue/


LTMRevenue

LTMEBITDA

AllianceDataSystemsCorporation $126.27 96.6% 3.8x 12.9x

DigitalRiverInc. $15.21 44.5% 0.5x 3.7x

Dun&BradstreetCorp. $67.87 78.4% 2.3x 7.6x

EquifaxInc. $46.23 97.9% 3.2x 9.8x

IntersectionsInc. $12.62 54.9% 0.6x 4.2x

NationalResearchCorp. $50.25 96.7% 4.3x 13.7x

Average 78.2% 2.4x 8.7x

EnterpriseValue/


LTMRevenue

LTMEBITDA

CenveoInc. $1.83 27.7% 0.7x 6.5x

InnotracCorp. $1.34 69.4% 0.2x 5.8x

PFSwebInc. $3.64 64.0% 0.2x 9.4x

ValassisCommunicationsInc. $20.75 64.9% 0.6x 4.9x

Average 56.5% 0.4x 6.6x

EnterpriseValue/

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AboutCHILDSAdvisoryPartnersCHILDSAdvisoryPartnersprovidesexceptionalinvestmentbankingservicestohigh‐performingbusinessservicesandtechnologycompanies in the middle market. Our combination of sector focus, proven processes and entrepreneurial edge set us apart.Collectively,ourseniorbankershaveexecutedover350M&Aandfinancingtransactions.CHILDS,amemberofFINRAandSIPC,isaregisteredbroker‐dealer.

OurServicesSell‐sideAdvisory:Whenyoudesiretosellormergeyourbusiness,wehelpyouprepare,positionandexecutetheprocesswithconfidentialityandspeedtoobtainmaximumresults.

Buyouts&Recapitalizations:We know the private equity groups interested in the sector and can help you prepare for duediligenceandtransactionsuccess.

Buy‐side Advisory: CHILDS can help you source deals, qualify them and negotiate them. Our sourcing “engine”, marketknowledgeandexperienceincreativedealstructureswillensurethatyouseeasmanydealsaspossibleandhavetheabilitytogetthemdone.

Debt/EquityCapitalRaises: Weadvisecompaniesseekingequityordebtcapital forgrowth, recapitalizationor restructuring.CHILDScanhelpyounegotiatewithyourexisting lenderstoreneworrestructuredebtfacilities. Ifneeded,wecantap intoourmanybankingrelationshipstosolicitandnegotiatetermsheetswithotherpotentiallendersaswell.

Financial&StrategicAdvisory:Weprovideanobjectiveanddisciplinedmethodologytohelpyourteamdevelopawinningplanfor short‐term performance and long‐term value creation. Whether it’s a Value Creation Road Map, Strategic AlternativesAssessment,EmployeeStockOwnershipPlan,orFairnessOpinion,weprovideinsighttotheoptionsavailableforcompanyownerstomaximizevalueandliquidity.

SectorFocus–BusinessServices&Technology

IT/ProfessionalServices

HumanCapitalManagement

BusinessProcessOutsourcing FacilityServices

Marketing&InfoServices

Consulting

ManagedServices

Federal

Tech‐enabledbusinessservices

Software

Staffing

HumanResourceOutsourcing

VendorManagementServices/ManagedServiceProvider

RecruitmentProcessOutsourcing

ProfessionalEmploymentOrganization

HCMTechnology

Collections/Receivables

LegalProcessOutsourcing

Teleservices

KnowledgeProcessOutsourcing

RevenueCycleManagement

FacilitiesManagement

Security

Building&Janitorial

Engineering&Maintenance

EquipmentRental

Logistics

Advertising&Media

DigitalAgencies

DataAnalytics

DirectMarketing

Print/Fulfillment

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Wecom

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JimChildsManagingDirecPhone:(770)5Email:jchilds@

DavePhillipsDirectorBusinessServicPhone:(904)2Email:dphillips

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@childsap.com

ces92‐[email protected]

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Contac

CooperMilManagingDBusinessSePhone:(770Email:cmill

JimmySecrDirectorTechnologyPhone:(770Email:jsecr

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llsDirectorervices0)500‐[email protected]

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DoDiTePhEm

AlVicBuPrPhEm

onHolbrookirectorechnology&Profehone:(949)276‐8mail:dholbrook@

lanBuglercePresidentusinessServicesrivateEquityCoorhone:(678)735‐5mail:abugler@ch

[email protected]

rdinator5320ildsap.com

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CHILDS

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