1. Small Cap Tech Update
June 21, 2010
M Partners RES Small Cap Tech Index Update
The M Partners RES Small Cap Tech Index is made up of 132 TSX and TSX.V technology companies with market
capitalizations of between $5M and $500M. We track the performance of the index periodically as a barometer of the
Canadian small cap technology sector.
% Price % Price
FW EV / TTM EV / Change Change
Key Stats EBITDA* EBITDA FW P/E* (Last Report) (YTD)
RES Small Cap Tech 7.4x 8.0x 16.6x -5.8% 5.9%
S&P/TSX Composite 8.2x 10.5x 12.75 -2.4% 1.4%
Difference -0.9x -2.5x 3.8x -3.4% 4.5%
*Based on 44 companies w/Estimates
Source: Capital IQ, Bloomberg, M Partners
 Since our last Small Cap Tech report on April 30, 2010, our index has underperformed the S&P/TSX composite index
with a return of -5.8% vs. -2.4% as of June 15, 2010. Investors were shedding risk by moving to liquid, dividend-
yielding stocks, or gold. Considering that Small Cap Tech is considered by investors to be risky, and less liquid than
other sectors, the downdraft could be expected.
 Notwithstanding recent underperformance, the RES Small Cap Tech has returned 5.9% YTD versus a 1.4% YTD for
the main index.
 Our index continues to trade at a discount to the S&P/TSX on both forward and trailing EV/EBITDA multiples of
10.4% and 24% respectively.
Top 5 and Bottom 5 Performers
% Price
Change % Price
(Last Change
Company Name Market Cap Last Price Report) (YTD)
Top Five
Bluepoint Data, Inc. (TSXV:BLP) $8.85 $0.20 73.9% -20.0%
Aptilon Corporation (TSXV:APZ) $48.20 $0.25 61.3% 150.0%
Free Energy International Inc. (TSXV:FFX) $5.24 $0.40 40.4% -11.1%
Healthscreen Solutions Inc. (TSXV:MDU) $17.20 $0.20 31.3% -2.3%
VIQ Solutions Inc. (TSXV:VQS) $32.90 $0.40 30.0% 47.2%
Bottom Five
Call Genie Inc. (TSX:GNE) $5.40 $0.07 -52.0% -70.0%
Intermap Technologies Corp. (TSX:IMP) $41.90 $0.80 -46.6% -61.0%
Natcore Technology, Inc. (TSXV:NXT) $12.40 $0.77 -46.2% 27.9%
Firan Technology Group Corp. (TSX:FTG) $5.87 $0.33 -40.0% -21.4%
Tranzeo Wireless Technologies Inc. (TSX:TZT) $34.90 $0.75 -39.7% -41.6%
Source: Capital IQ
Sub-Segment Performance
Member of the Investment Industry Regulatory Organization of Canada (IIROC) Daniel Lee,
Participating Organization – Toronto Stock Exchange (TSX) Ron Shuttleworth, Research Associate
M|PARTNERS
Member Canadian Investor Protection Fund (CIPF) 416.603.7381 ext. 277
Equity Analyst
416.603.7381 ext. 250 dl@mpartners.ca
Research • Trading • Advisory rs@mpartners.ca

2. Small Cap Tech Update
June 21, 2010
 The technology sector was not immune to the
% Price
Change % Price
general declines in the market cause by
(Last Change uncertainty related to the EU debt crisis.
Sub-Segment Performance Market Cap Last Price Report) (YTD)
Mobile Ecosystem
Bridgewater Systems Corporation (TSX:BWC) $ 240.40 $ 9.72 8.0% 16.9%  Most of the companies in the sub-segments
DragonWave Inc. (TSX:DWI) $ 233.50 $ 6.32 -23.6% -44.9%
iseemedia Inc. (TSXV:IEE) $ 9.41 $ 0.13 8.3% -35.0% experienced monthly declines with some notable
MOSAID Technologies Inc. (TSX:MSD)
Multiplied Media Corporation (TSXV:MMC)
$
$
253.60
30.00
$
$
21.56
0.12
-0.2%
-32.4%
12.8%
-29.4%
exceptions including iLOOKABOUT, Wi-Lan, Tio
Redknee Solutions, Inc. (TSX:RKN) $ 84.20 $ 1.40 -11.9% 40.0% Networks, and Bridgewater Systems. Each of
Sandvine Corporation (TSX:SVC)
Sierra Wireless Inc. (TSX:SW)
$
$
290.00
226.70
$
$
2.13
7.30
-1.8%
-7.3%
69.0%
-32.9%
these companies either announced great quarters
Tranzeo Wireless Technologies Inc. (TSX:TZT) $ 34.90 $ 0.75 -39.7% -41.6% or significant corporate developments.
Vecima Networks Inc. (TSX:VCM) $ 101.50 $ 4.55 -37.7% -24.8%
Wi-Lan Inc. (TSX:WIN) $ 323.00 $ 3.15 7.9% 19.8%
Average -11.8% -4.6%  The performance of the mobile ecosystem was
Payments and Transaction Processing heavily impacted by the declines of the mobile
GuestLogix Inc. (TSX:GXI) $ 88.00 $ 1.38 -9.9% 50.5%
PNI Digital Media Inc. (TSXV:PN) $ 54.30 $ 1.60 -12.2% -4.2% gear vendors such as Vecima Networks, Tranzeo
Selectcore Ltd. (TSXV:SCG)
TIO Networks Corp. (TSXV:TNC)
$
$
5.12
31.60
$
$
0.05
0.68
-37.5%
10.9%
-16.7%
-1.6%
Wireless, and Dragonwave as they all missed lofty
Average -12.2% 7.0% expectations. Despite hot demand for capacity,
Cloud/SaaS competition from traditional vendors like Ericsson
Cortex Business Solutions Inc. (TSXV:CBX) $ 58.00 $ 0.40 -13.0% 77.8%
Descartes Systems Group Inc. (TSX:DSG) $ 382.30 $ 6.22 0.6% -1.3% and Alcatel should also heat up and these upstarts
iLOOKABOUT Corp. (TSXV:ILA) $ 15.50 $ 0.50 20.0% 15.4% may find more challenges ahead. Sector
Average 2.5% 30.6%
consolidation should continue.
Group Average -9.5% 3.9%
Source: Capital IQ
M Partners Coverage List
EV/EBITDA Compsets
Target Share Market FY'10 FY'11
Technology Coverage List FY'10 FY'11 FY'10 FY'11 Rating EV
Price Price Cap (M) EBITDA EBITDA
GuestLogix Inc. (TSX:GXI) 8.5x 5.2x 16.1x 12.8x $2.30 $1.37 $87.38 BUY $85.94 $10.13 $16.44
Bridgewater Systems Corporation (TSX:BWC) 8.6x 5.8x 21.3x 13.9x $14.30 $9.83 $243.15 BUY $158.90 18.50 27.36
Redknee Solutions, Inc. (TSX:RKN) 8.3x 5.7x 21.3x 13.9x $1.90 $1.40 $84.18 BUY $64.41 7.76 11.40
Sandvine Corporation (TSX:SVC) 26.0x 13.2x 21.3x 13.9x $1.90 $2.18 $296.85 HOLD $208.41 8.01 15.84
iLOOKABOUT Corp. (TSXV:ILA) 14.4x 2.2x 8.6x 6.9x $1.40 $0.60 $18.57 BUY $16.54 1.15 7.58
Cyberplex Inc. (TSX:CX) Restricted $0.60 $41.08 $25.51 Restricted
Source: Capital IQ, M Partners
*Note: BWC, RKN, and SVC have identical comp sets
Transactions during May 2010
Transaction Transaction
Filing Date Company Transaction Type Status Value (mm) Buyers/Investors Sellers
06/10/2010 OPEL International Inc (TSXV:OPL) Private Placement Announced $6.3 - -
06/08/2010 Azure Dynamics Corp (TSX:AZD) Private Placement Announced $7.0 - -
05/27/2010 Logibec Groupe Informatique Ltee (TSX:LGI) Merger/Acquisition Announced $250.3 Societe Generale Quebec; OMERS Societe Generale Quebec
05/27/2010 Titan Trading Analytics, Inc. (TSXV:TTA) Private Placement Closed $0.9 - -
05/25/2010 Cantronic Systems, Inc. (TSXV:CTS) Private Placement Closed $0.5 GC Global Capital Corp. -
05/19/2010 Cyberplex Inc. (TSX:CX) Merger/Acquisition Closed $75.6 Cyberplex Inc. (TSX:CX) Tsavo Media
05/18/2010 Cyberplex Inc. (TSX:CX) Private Placement Closed $30.3 - -
05/18/2010 ARISE Technologies Corp. (TSX:APV) Public Offering Closed $9.7 - -
05/18/2010 LasVegasFromHome.com Ent. Inc. (TSXV:LVH) Private Placement Announced $2.9 - -
05/17/2010 ARISE Technologies Corp. (TSX:APV) Private Placement Closed $1.8 - -
05/12/2010 Matrikon Inc. (TSX:MTK) Merger/Acquisition Announced $138.1 Honeywell International Inc. (NYSE:HON) -
Source: Capital IQ, SEDAR, M Partners
Member of the Investment Industry Regulatory Organization of Canada (IIROC) Daniel Lee,
Participating Organization – Toronto Stock Exchange (TSX) Ron Shuttleworth, Research Associate
M|PARTNERS
Member Canadian Investor Protection Fund (CIPF) 416.603.7381 ext. 277
Equity Analyst
416.603.7381 ext. 250 dl@mpartners.ca
Research • Trading • Advisory rs@mpartners.ca

3. APPENDIX A – RES Small Cap Index Constituents