January 2011

OTC Markets Group Inc.

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Who we are

The Quality Controlled Marketplace

The U.S. Reporting Company Marketplace

The Speculative Trading Marketplace

OTC Markets Group operates the world's largest electronic marketplace for trading unlisted stocks. Our open network of competing broker-dealers provides investors with the best prices in over 10,000 OTC securities. We organize the OTC into three tiers:

so investors can identify the level and quality of information companies provide. Through innovative technology and exceptional customer service, our mission is to create a transparent and efficient world-class marketplace.

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Our Network

• 160 Market Maker, Agency Broker, and ECN Broker‐Dealers competing on our platform to provide execution services for investors in unlisted securities

• Easy investor access through any U.S. broker‐dealer

• Seamless connectivity to broker‐dealer order management systems

• Real‐time prices and tiers on all major online brokers (E*Trade, TD Ameritrade, Schwab, Fidelity, Scottrade, etc)

• Distribution of prices and tiers through major market data vendors and financial portals

• With 800,000 visits and 24 million page views, www.otcmarkets.com is the central information source for investors interested in unlisted stocks

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State of the OTC – 2010 Volumes

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5

10

15

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25

30

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40

45

1st Qtr 2009

2nd Qtr 2009

3rd Qtr 2009

4th Qtr 2009

1st Qtr 2010

2nd Qtr 2010

3rd Qtr 2010

4th Qtr 2010

Bill

ions

Dollar Volumes have rebounded from Flash Crash hangover & OTC Link volumes continue to increase.

09-10 OTC Market Quarterly $ Volume

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State of the OTC – FINRA’s BB

Overview

4,396 Priced Quotes

21 BB Only Securities

2,858 Dually Quoted Securities – Down from 3,149 in Q1 2010

1,667 BB securities with No Inside Price being created (< 2 priced quotes)

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10000

20000

30000

40000

50000

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70000

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

OTC Markets FINRA BBPriced Quotes

4,396

61,652

December 2010 – 96.2% of OTC Trading Volume occurred in companies making current disclosure to investors.

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State of the OTC – Trading By Tier

OTC Market Tier # Securities Monthly $ Vol. % of Total $ Vol.

OTCQX 159 $1,971,091,273 13.8%

OTCQB 3,851 $3,970,777,887 27.9%

OTC Pink - Current Information 1,830 $7,762,691,726 54.5%

OTC Pink - Limited Information 749 $339,886,184 2.4%

OTC Pink - No Information 3,375 $207,888,915 1.5%

FINRA BB Only 22 $14,545 0.0001%

Total Quoted OTC Market 9,986 $14,252,350,531

~3,300 securities only represented 1.5% of dollar volume. No Information = No Trading.

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State of the OTC – Trading Across Alternative Marketplaces

Source: 30 December 2010, OTC Markets Group, TMX Group, LSE

Average $ Volume per Security measures marketplace liquidity.Average Trades per Security gauges the amount of investors participating in a marketplace.Average $ Amount per Trade is an indication of the types of investors participating in a marketplace.

Market#

Securities $ Volume Trade Count

Average $ Volume per

Security

Average Trades Per

Security

Average $ Amount per

Trade

OTCQX 159 $1,971,091,273 114,685 $12,396,800 721 $17,187

LSE AIM 1,194 $5,627,687,548 498,894 $4,713,306 418 $11,280

OTC Pink - Current 1,830 $7,762,691,726 610,890 $4,241,908 334 $12,707

TSX Venture 2,147 $4,588,986,695 1,243,502 $2,137,395 579 $3,690

OTCQB 3,851 $3,970,777,887 1,156,349 $1,031,103 300 $3,434

An Increasing Number of Globally Recognized Companies Trade OTCQX

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OTCQX Offers Greater Visibility and Access

VisibilityTop Tier of the OTC MarketsHighest levels of trading activity & liquidity

Quality ControlFinancial StandardsQualitative Review Sponsorship by DAD/PAL

TransparencyReal-Time Level 2 QuotesEasy investor access to company

information & financial disclosure Access

Blue Sky Monitoring & AdvisoryBroker-dealer and investment advisor

compliance

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More Open Reporting Options Than Traditional Exchanges

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1. SEC Reporting Standard12(g) registered and reporting (files10Ks or 20Fs, etc.)

2. International Information StandardExempt from registration under 12g3-2(b) and files home country disclosure in English

3. Alternative Reporting StandardFor companies not required to file with the SEC that have fewer than 500 record holders and less than $10MM in assets.

DAD/PAL AdvisorsProviding Skilled Market Sponsorship and Advice

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• DADs (Designated Advisor for Disclosure) sponsor U.S. companies on OTCQX.

• PALs (Principal American Liaison) sponsor non-U.S. companies on International OTCQX.

• Companies must be sponsored by a qualified investment bank, DR Bank (ADRS only) or attorney DAD/PAL to list on OTCQX.

• The DAD/PAL role is modeled after the Nomads on the AIM market, but built to work within the U.S. framework.

• OTCQX relies on the DAD/PAL community to sponsor credible and trustworthy companies while providing professional securities advice to the companies’ management.

OTC Market Segments Comparison

OTCQX OTCQB FINRA BB Pink

Qualitative listing standards NO NO NO

Listing agreement NO NO NO

Audited Current Disclosure Required

NO

SEC or US Banking Reporting Only

NO NO

Shells and distressed companies excluded

NO NO NO

FINRA regulated quotes

Broker-dealer drivenmarketplace

Electronic Marketplace NO

Services for Issuers NO

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Upcoming OTC Market Structure Changes in 2011

• Access Fees• Limit Order Display• Market Order Protection• FINRA BB Closing Down• OTC Link Alternative Trading System (ATS)

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Regulatory Changes – OTC Link

We are registering our OTC Link - Interdealer Quotation System with the SEC and FINRA to operate under Regulation ATS.

•Anticipation of approval is end of Q1•There will be no changes from the perspective of the Subscribers to our products and services

•Trading Services products will be provided by OTC Link ATS/BD•Subscribers will access the market place as they do now•The ATS is being created to act as a Regulated Interdealer Quotation System, not an ECN or Dark Pool