New Heading

1
March 25, 2003
Columbia Presentation
Software. Services. Solutions.
2
Contents

• Company Overview
• Deal Management Software (DMS) from
  CapitalThinking
• The Market Opportunities
• 5 Year Projections
• The Management Team
• Investment Highlights

3
CapitalThinkings Corporate Overview

• A leading application software company for the
  financial services industry supplying Deal
  Management Software (DMS)
• Globally implemented solutions operational
  throughout Europe, North America and Asia
• World-class customer list
• Top tier team of professionals representing
  banking, finance and software engineering
• Based in New York City, the heart of one of the
  worlds leading financial centers, keeps us close
  to our customers

4
Representative Customers
5
Target Customer Segment
Institutional Financial Services
Commercial Banks
Finance Companies
Investment Banks
Insurance Companies
6
DMS Supports Life-Cycle-of-the-Deal
7
CapitalThinking DMS Solutions
CapitalThinking CMBS Application
CapitalThinking Portfolio Application
CapitalThinking Multifamily Application
DEAL MANAGEMENT SOFTWARE PLATFORM
C I Lending
ABS and Lending
Bond Underwriting
8
Deal Management Software (DMS)

• Solving the Operational Risk Problem -- Low
  Frequency, High Impact Risk -- in Wholesale
  Financial Services
• Drive cost efficiencies in institutional
  financial asset structuring, monitoring and
• reporting, from origination thru closing and
  post-close asset management
• Meet the challenge of increasing revenue and
  profits without increasing credit and
• operational risk
• Basel II raises the stakes banks must show
  consistently applied credit standards
• across sectors or suffer equity penalties
• What DMS applications do
• Eliminate costly paper-based processed and files
• Support smarter work flows for few errors and
  uniform standards
• Cut costs of IT systems development and support
• Conform and track credit decision rules and
  models
• Automate pooling, securitizations and
  syndications
• Automate tracking and audit reports
• Support risk management capabilities and data
  mining

9
The bluewire Solution Reduced Friction Costs
Current Method
bluewire
TM

Lender CRE Financing Process
Days
Days
ELECTRONIC DISTRIBUTION
1
Initial Data Collection Screening Measure Data
Collection Operating Statements, Rent
Rolls Tenant History, Environmental
History Market Demographics Multiple Lender
Committee Reviews Extensive Negotiation of
Terms Assemble Hundreds of Documents Legal,
Financial, Credit, Security, Engineering,
Environmental, Many More Collaborate and
Revise Close Securitization Analytics Bond
Rating Distribution Archiving Retrieval
MANUAL
1
ELECTRONIC DOCUMENT UPLOAD AND EXCHANGE
MANUAL
5
MANUAL
INTERNAL PACKAGES ELECTRONICALLY PREPARED FROM
UNITARY DATA BASE
5
Assist from Excel, Access, Etc.
ELECTRONIC DOCUMENT ASSEMBLY AND
COLLABORATION
MANUAL
10
60
MANUAL
THIRD PARTIES BID OVER WEB
MANUAL
90
COLLABORATIVE WEB-BASED WORK SPACE
MANUAL
20
FULLY AUTOMATED
PARTLY AUTOMATED
120
FULLY AUTOMATED
DIGITAL STORAGE AND RETRIEVAL
EXCEL/ACCESS
150
30
HARD COPY
10
What the IT Analysts are Saying
In an effort to prevent disintermediation and
displacement, many banks are likely to focus more
attention on commercial lending technologies. a
high-end solution is not defined by the size of
the loans it handles, but its ability to handle
syndications, collateral postings and highly
structured transactions While loan transactions
of this type are typically complex and do not
lend themselves to automated decisioning
capabilities, technology can be used internally
to automate workflow and eliminate redundant
systems.


-- Celent Communications,
Bank Technology News January 2003 American
workers spend almost 500 hours a year, or 25 of
their time on the job, searching for files and
information.


--
Benchmark Consulting International January
2003 Systems integration is the number one
priority for banks this year. Not just because
integration is the objective, but because its a
critical prerequisite to get into a lot of other
objectives that banks have on their plate.



-- Lee Kidder, Director
Wholesale Banking Research, TowerGroup, Bank
Technology News January 2003
11
The Market Opportunity for our Software

• Wholesale banking in North America IT Spend
• 2003 -- 10.3 billion
• 2004 -- 10.6 billion
• 2005 -- 10.9 billion
• 2006 -- 11.3 billion
• Of this, 8 to 10 is replacement of legacy
  systems
• Total breakdown of this spend
• 25 -- Hardware
• 47 -- Software (Internal)
• 15 -- Software (External)
• 13 -- External Services and Outsourcing
• Risk Management Spend projected to be 1.6
  billion in 2003
• 30 of which is on operational risk (versus
  market risk)
• Source Tower Group

12
CapitalThinking bluewire
EXTENSIBLE
LEVERAGE EXISTING SYSTEMS
CLOSED LOOP PROCESSING
MIGRATION STRATEGIES
13
Immediate Term Target Markets
14
The Sell-through is Very Efficient

• Some 250 institutions account more than half of
• CRE mortgages
• CI Lending
• ABS issuances
• Leasing
• The top 100 all offer multiple-vertical
  opportunities
• The larger ones offer multiple licenses in the
  same vertical

15
Our Top Clients/Targets are in all Verticals
16
IBank/Conduits in both CMBS and ABS
17
Targeting the CI Vertical

• Broader market
• CRE is specialty lending, concentrated in big
  banks and insurers
• CI is a bread-and-butter banking business
• Some 500 banks with 100m business loans on
  books
• Its a natural vertical for CapitalThinking
• Our customers see the immediate analogy weve
  signed our first
• contracts
• Extended analyses shows a great architectural
  fit with bluewire
• technology
• Low up-front investment to enter into new
  verticals

18
Competitive / Partnering Opportunities

• Competitive Landscape Were in the right Sandbox
• ACBS
• AFS
• IQ Financial
• Siebel
• CapitalStream
• GMAC
• Competitor / Partner distinction sometimes
  blurred
• We will oftentimes be sitting on top of ACBS or
  Loan IQ

19
5 Year Projections and Potential Exit Valuation

• 2003 2007 Financial Projections

20
Projected Company Valuations at 3x Revenues
21
Stellar Management Team

• CEO Heather Shively
• CapitalThinking Founder BMO Nesbitt Burns
  Peace Corps
• COO Myles Trachtenberg
• Intralinks Prudential Citi Chase Drexel
• CFO Kathy Shea-Urbat
• Hyatt International Coopers Chase
• SVP Product Dev Engineering Hung-Chou Tai
• Oracle Financial Services MIT
• VP Professional Services Mitch Janoff
• IBM, Equitable, Tenfold
• VPs Sales Team of 3 senior sales professionals
• 15-20 years experience each
• VP Marketing Heidi Wooden
• 15 year industry veteran

22
Investment Highlights

• Seeking 5 million of growth/expansion capital
• Proven, commercialized products
• Proven market demand and significant share
• Exceptional management team
• Profitable in 2003
• Recession proof target customer base
• Large addressable market
• 2B plus in middle-market segment alone