Businesss are turning progressively to the Web to purchase, sell or broker existent estate, commercial- size tonss of consumer goods, authorities excess and merely about anything else. This has resulted in a immense proliferation of commercial sites providing about wholly to the concern community.

LoopNet, Inc. , a taking information services supplier to the commercial existent estate industry, delivers a comprehensive suite of merchandises and services to run into the national and local demands of commercial existent estate houses, organisations and professionals. It operates the largest and most to a great extent trafficked commercial existent estate listing service online with more than 4 million registered members and 1.5 Million mean monthly alone visitants. The LoopNet online market place has more than $ 455 billion of belongings available for sale and 6.7 billion square pess of belongings available for rental. Some of its clients include CB Richard Ellis, Century 21 Commercial, Coldwell Banker Commercial, Colliers International, Cushman & A ; Wakefield, Grubb & A ; Ellis, Lincoln Property Company, Marcus & A ; Millichap, NAI Global, ProLogis, RE/MAX, and Sperry Van Ness.

LoopNet besides owns and operates BizBuySell, Inc. , the largest and most to a great extent trafficked on-line exchange for concerns for sale in North America, with more concern listings, users and hunt activity than any other web site. BizBuySell has over 45,000 concerns for sale listings, more than 700,000 mean monthly visits, and features the largest database of sale comparables for late sold concerns.

THE MANAGEMENT

Name

Executive Position

Brent Stumme

CFO/Divisional Senior VP at LoopNet, Inc.

Dennis H. Chookaszian

Director at LoopNet, Inc.

James T. Farrell

Director at LoopNet, Inc.

Jason Greenman

Divisional Senior VP/Other Executive Officer at LoopNet, Inc.

Noel J. Fenton

Director at LoopNet, Inc.

Richard J. Boyle

CEO/Chairman of the Board/Director at LoopNet, Inc.

Scott S. Ingraham

Director at LoopNet, Inc.

Thomas Byrne

COO/President at LoopNet, Inc.

Thomas E. Unterman, J.D.

Director at LoopNet, Inc.

Wayne Warthen

Chief Technology Officer/Divisional Senior VP at LoopNet, Inc.

William G. Byrnes

Director at LoopNet, Inc.

As of December 2009, there are 275 employees.

Technology AND INFRASTRUCTURE

A

Loopnet has developed a proprietary package which facilitates the listing and searching of commercial belongingss and concern for sale or for rental. Its market place is built chiefly on Microsoft engineering, using the Microsoft.Net model and Microsoft SQL Server. The system is in such a manner that it provides capacity scaling through the add-on of waiter and web hardware without alteration in package. System is unafraid have constituents of import have reduncy. Tape backups are done day-to-day and they are rotated to a secure, offsite installation. In order to maximise website velocity inactive web site content is cached at locations across US.

An extra degree of protection is implemented for fiscal personal information. Information related to recognition cards etc are encrypted and stored in the database which ensures it is safe and protected.

Technology and merchandise development disbursals were $ 6.4A million, $ 9.1A million, and $ 10.7A million in 2007, 2008, and 2009, severally.

Competition IN MARKET

A

The market for loopnet is competitory and fragmented. Even though there is no house which competes with regard to all service and merchandise countries, still competition is felt from separate beginnings with regard to our different merchandise offerings.

One of the them is CoStar Group, Inc. , a supplier of information, research and selling services to the commercial existent estate market.

Several companies, such as Property Line International, Inc. , besides compete with this which has created on-line belongings listing services

In add-on, newspapers include on their web sites listings of commercial existent estate for sale and for rental.

In the yesteryear, the National Association of REALTORSA® or NAR, its local boards of REALTORSA® , its assorted affiliates, and other 3rd parties have created commercial existent estate information and listing services.

THE BUSINESS MODEL

The LoopNet Model

A They provide an on-line market place that expeditiously connects commercial existent estate supply and demand. Tools are besides provided that allow belongings Listers to proactively reach possible purchasers and renters seeking specific types of properties.A The cardinal properties of their concern theoretical account include:

A Leading commercial existent estate on-line market place: A They have aggregated a critical mass of commercial existent estate agents, belongings proprietors, landlords, purchasers, renters and for sale or for lease belongings listings. As of DecemberA 31, 2009, there are 3.9A million registered members and more than 68,000 premium members. Commercial existent estate agents, belongings proprietors and landlords are attracted to LoopNet because of the big figure of possible purchasers and renters, who in bend are attracted by the wide choice of belongingss listed on our market place.

A Comprehensive member-generated content offering: The bulk of belongings listings are submitted utilizing online tools provided by the web site. All the elaborate content provided by members on belongings listing are compiled automatically and is invariably updated which adds to the advantages of the members when they visit the web site.

A Compelling member experience: A This market place is intuitive, easy-to-use online serviceand can be accessed any clip. On being a member, an proprietor or agent working for the proprietor can name belongingss on the service, and purchasers and renters can seek for belongings listings rapidly and easily.usinf MyLoopNet characteristic members can hive away multiple belongings profiles online for forming their hunt and to happen thr right 1 for them.

A In add-on BizBuySell and BizQuest are besides operated which are on-line market topographic points enabling concern proprietors, Sellerss and agents to name and seek for operating concern for sale.

THE REVENUE MODEL

The primary beginnings of grosss are:

Loopnet premium rank fees

Other belongings advertisement fees, such as cityfeet.com and landandfarm.com

BizBuySell andBizQuest memebership fees and paid listings

Ad on, and lead coevals from, market topographic point

Looplink merchandise licence fees, and

Loopnet Rescent gross revenues rank fees

The cardinal factors that impact grosss are:

The acceptance of premium rank services by the commercial existent estate industry and cancellation rates

The mean monthly subscription monetary value of premium rank merchandise

The acceptance of recent gross revenues services by commercial existent estate industry and

The acceptance of services by the operationg concern for sale industry

A

The fee for LoopNet premium rank is $ 66.01 per month during the 4th one-fourth of 2009. Entire gross for the first one-fourth of 2007 was US $ 15.5-million, an addition of 52 % from US $ 10.2-million in the first one-fourth of 2006. Its net income for the first one-fourth of 2007 was US $ 4.5-million compared to US $ 3.0- million in the first one-fourth of 2006. Appendix 1.

Net hard currency provided by runing activities was $ 18.6A million, $ 30.3 million and $ 25.1 million for the old ages 2009, 2007 and 2008 severally.

COMPETITIVE Advantage

The LoopNet Advantage

The market topographic point developed addresses the demands of everyone from existent estate agents, belongings proprietors, to renters and purchasers.

Benefits to Property Listers

Broad selling exposure: Online market place offers commercial existent estate agents and the proprietors and landlords for stand foring market belongingss available for sale or for rental. Besides there is high exposure to the big audience of members.

Cost-efficient and mensurable selling method: A The LoopNet online market place is more cost effectual and accountable than traditional methods for marketing commercial existent estate belongingss.

Detailed and up-to-date belongings naming information: A The market place besides allows members to supply significantly more information on a real-time footing than the traditional commercial existent estate selling methods.

A Benefits to Property Searchers

Access to a big figure of belongings listings: A The market place contains about 732,000 belongings listings as of DecemberA 31, 2009, chiefly from the United States and Canada

Real-time, comprehensive information: The market place provides entree to comprehensive content on commercial existent estate belongingss available for sale or for rental and are able to supply immediate updates on revised and new belongings listings to the members.

Customized hunt engine: A The on-line market place is easy to utilize and voyage. Commercial existent estate agents, purchasers and renters use our proprietary commercial existent estate hunt engine to rapidly happen belongingss which meet their standards.

Scheme

A

Aim is to heighten its place as prima on-line market place for commercial existent estate, runing concern for sale and related market topographic point for commercial existent estate, operating concerns for sale, and related markets. To accomplish this undermentioned scheme are used:

Expand our base of registered members.A A Turning base of registered members increases the value of on-line market place to the beginnings of both supply and demand for the commercial existent estate market. More belongings listings pull more persons seeking for belongingss, which in bend attracts more persons seeking to name belongingss, therefore doing the LoopNet market place more valuable for all.

Derive gross from premium members.A A Grosss are chiefly from premium ranks, so it is critical to change over basic members into premium members and grow gross per premium member. This can be done by increasing the figure of basic members and so foregrounding to them the value and benefits of premium rank. Besides by go oning to increase the value of the services we provide to our premium members, and to increase the value of the services provided.

Offer complementary merchandises and services.A A Online market place produces a important sum of information on commercial existent estate minutess and belongings listings. In add-on, in January 2010, a strategic partnership was formed with Auction Point, a solution supplier to commercial existent estate agents in support of auction offerings.

Enhance the functionality of our marketplace.A A Investment is done in bettering the market place. For illustration, in 2009, the listing hunt and show functionality was rebuilt to be much faster and supply extra types of information.

Expand into new markets.A A There are chances to spread out into new markets. this has been done byexpanding into the operating concern for sale market through acquisition of BizBuySell, an on-line market place for operating concerns for sale, in October 2004 and late completed the acquisition of BizQuest in January 2010 to foster our growing and consolidation of the concern for sale industry.

Increase chances to publicize to our member base.A A We intend to increase the advertisement chances available to parties who are seeking to market merchandises and services to our member base.

.

Decision

The merchandises and services loopnet offers facilitate the sale and rental of commercial existent estate by enabling industry participants to name and happen belongingss on on-line market place and to reach and transact with one another.

Through on-line market place, commercial existent estate agents working on behalf of Sellerss and landlords are able to name their belongingss for sale or for rental along with qualitative descriptions, quantitative specifications, exposure and diagrams. Buyers and renters of commercial existent estate and their agents can execute extremely targeted hunts and reexamine the belongings listings on on-line market place.

By turn toing all the demand of commercial existent estate industry participants Loopnet will certainly take the on-line commercial existent estate market topographic point for a long clip.

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Appendix

Appendix 1