##### Table of Contents









FORM 10-K


x








o






GREENFIELD ONLINE, INC.




|                                                                        |  |                                  
|----------------------------------------------------------------------- |  | ---------------------------------
|Delaware                                                                |  | 06-1440369                       
|(State or other jurisdiction of
    incorporation or organization)      |  | (IRS Employer Identification No.)
|                                                                       
|21 River Road, Wilton, CT
     (Address of principal executive offices) |  | 06897
     (Zip Code)            

834-8585








o x




o x




x o


S-K 10-K 10-K. o


non-accelerated 12b-2


o x Non-accelerated o


12b-2 o x


non-affiliates




DOCUMENTS INCORPORATED BY REFERENCE






---



##### 










TABLE OF CONTENTS


|                                               |  |                                                                                                                       |  |      |     | 
|---------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|                                               |  |                                                                                                                       |  | Page |    
|                                               |  |                                                                                                                       |  |      |    
|Item 1.                                        |  | Business                                                                                                              |  |      | 1   | 
|Item 1A.                                       |  | Risk Factors                                                                                                          |  |      | 16  | 
|Item 1B.                                       |  | Unresolved Staff Comments                                                                                             |  |      | 25  | 
|Item 2.                                        |  | Properties                                                                                                            |  |      | 26  | 
|Item 3.                                        |  | Legal Proceedings                                                                                                     |  |      | 26  | 
|Item 4.                                        |  | Submission of Matters to a Vote of Security
    Holders                                                               |  |      | 27  | 
|Item 5.                                        |  | Market for Registrants Common Equity,
    Related Stockholder Matters, and Issuer Purchases of Equity
    Securities |  |      | 27  | 
|Item 6.                                        |  | Selected Financial Data                                                                                               |  |      | 28  | 
|Item 7.                                        |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                             |  |      | 30  | 
|Item 7A.                                       |  | Qualitative and Quantitative Disclosures
    about Market Risk                                                        |  |      | 55  | 
|Item 8.                                        |  | Financial Statements and Supplementary
    Data                                                                       |  |      | 56  | 
|Item 9.                                        |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                              |  |      | 107 | 
|Item 9A.                                       |  | Controls and Procedures                                                                                               |  |      | 107 | 
|Item 9B.                                       |  | Other Information                                                                                                     |  |      | 107 | 
|Item 10.                                       |  | Directors, Executive Officers and Key
    Employees of the Registrant and Related Stockholder Matters                 |  |      | 108 | 
|Item 11.                                       |  | Executive Compensation                                                                                                |  |      | 108 | 
|Item 12.                                       |  | Security Ownership of Certain Beneficial
    Owners and Management                                                    |  |      | 108 | 
|Item 13.                                       |  | Certain Relationships and Related
    Transactions                                                                    |  |      | 108 | 
|Item 14.                                       |  | Principal Accounting Fees and Services                                                                                |  |      | 108 | 
|Item 15.                                       |  | Exhibits and Financial Statement
    Schedules                                                                        |  |      | 108 | 
|EX-21.1: LIST OF SUBSIDIARIES                 
|EX-23.1: CONSENT OF PRICEWATERHOUSECOOPERS LLP
|EX-31.1: CERTIFICATION                        
|EX-31.2: CERTIFICATION                        
|EX-32.1: CERTIFICATION                        
|EX-32.2: CERTIFICATION                        



i



---



##### Table of Contents



PART I.


SAFE HARBOR STATEMENT


10-K 10-K. 10-K







|        |         
|------- | --------
|Item 1. | BUSINESS



Segment Information




1



---



##### Table of Contents



10-K.


Overview




| |                              
| | -----------------------------
| | Internet Survey
    Solutions











| |                        
| | -----------------------
| | Comparison
    Shopping



2



---



##### Table of Contents





Recent Developments






Our Market Opportunity




| |                              
| | -----------------------------
| | Internet Survey
    Solutions



Factors Affecting the Growth of Internet-Based Marketing
Research


Benefits of Internet-Based Marketing Research.




| |   |                                            
| | - | -------------------------------------------
| |  | Benefits to the Marketing Research Industry



| |                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Speed. Using the Internet, marketing researchers can
    rapidly access, collect and process large amounts of data from
    diverse groups across multiple countries and languages
    simultaneously. Our proprietary panel management techniques
    allow us to quickly identify and target groups of panelists to
    receive and participate in

3



---



##### Table of Contents



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | surveys over the Internet. Survey response time on the Internet
    is measured in hours and days rather than weeks and months. Our
    technology and expertise allow us to administer thousands of
    Internet surveys simultaneously.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | Cost Effectiveness. We believe that Internet-based survey
    solutions lower the cost of marketing research by decreasing
    data collection costs. Once qualified panelists have been
    identified and surveys have been developed, the actual cost of
    data collection through the Internet is significantly less than
    through traditional methods. The average price we charge in
    North America for a completed survey ranges from $8.00 to
    $14.00, compared to our estimate of approximately $20.00 to
    $25.00 per mall survey and $18.00 to $22.00 per
    telephone survey.                                                                                                                                                                                                                                                                                                                                                           
|
| | Improved Results. Members of our Internet panels are able
    to complete surveys in the privacy of their own homes, without
    interacting with interviewers. As a result, we believe
    interviewer bias is eliminated. Because the Internet provides
    respondents with a degree of anonymity and privacy not found in
    telephone or mall-based surveys, we believe Internet survey
    solutions generate more honest responses, even to sensitive
    subject matter questions, such as income, personal health,
    political affiliations and sexual orientation. Internet-based
    surveys can accommodate a variety of new media as well,
    including images, sound and video, which cannot be integrated
    into telephone or mail surveys. We believe that integrating
    these media allows researchers to capture feedback needed by
    marketers to assess new product offerings and test new
    advertising messages more accurately.
|
| | New Opportunities. We believe that Internet-based
    marketing research offers new options not previously available
    to research professionals. Internet survey solutions allow
    research professionals more design flexibility because they are
    not limited to what can be communicated by an interviewer over
    the telephone, or detailed on paper. Our Internet survey
    solutions increase the research options available to our clients
    by allowing them to embed images, sound and video within their
    surveys.                                                                                                                                                                                                                                                                                                                                                                                                                      



| |   |                               
| | - | ------------------------------
| |  | Benefits to Survey Respondents



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Less Intrusive and More Convenient. Our Internet survey
    solutions are less intrusive than telephone surveys. The
    Internet expands the amount of data collection time available
    because respondents can complete surveys at their convenience at
    any time. In contrast, telephone surveys can only be conducted
    during limited hours and are often attempted at times of the
    day, such as dinner time, which many respondents find intrusive
    and inconvenient.
|
| | More Engaging. Our Internet survey solutions are more
    engaging than telephone and direct mail surveys because they
    integrate images, sound and video, and often include advance
    previews of potential new products, movie trailers and
    commercials. We believe this advance preview feature makes our
    Internet survey solutions more compelling and enjoyable for our
    panelists than surveys administered through traditional methods.                           



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Growth in Internet Penetration. Studies reflect that the
    percentage of the U.S. and European population using the
    Internet is growing. As Internet penetration increases, and in
    particular as broadband penetration climbs, we believe the
    migration from traditional data collection methods to
    Internet-based data collection will accelerate. As the
    population of Internet users increases, a larger and more
    diverse group of people become accessible to us as potential
    panelists and the quality of our Internet panels will likely
    improve.

4



---



##### Table of Contents





| |                        
| | -----------------------
| | Comparison
    Shopping



Factors Affecting the Growth of Comparison Shopping




| |   |                          
| | - | -------------------------
| |  | Benefits to
    Consumers



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Centrally Located and Detailed Information. We aggregate
    product information on several million consumer products
    together with thousands of merchant offers at one location so
    that online shoppers can compare and evaluate different brands
    and offers. We believe that this centrally located, detailed and
    organized information allows online shoppers to make informed
    purchasing decisions easier and more efficiently, as opposed to
    searching for and visiting individual merchant websites.
|
| | Ciao Community Reviews. Since our inception members of
    the Ciao community have posted several million product and store
    reviews on our shopping portals. These reviews may be written in
    any of 6 languages, with a minimum word count of
    100 words per review. We believe that this searchable
    database of consumer reviews helps consumers make informed
    decisions regarding products and online merchants.                                                                                             



| |   |                           
| | - | --------------------------
| |  | Benefits for
    Merchants



| |                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Qualified Consumer Audience. We allow online merchants
    the opportunity to present their offers and products to
    consumers who have used our online catalog and large database of
    consumer reviews to research products at the moment when they
    are pre-disposed to make a purchase.

Our Competitive Position




| |                              
| | -----------------------------
| | Internet Survey
    Solutions





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our Internet Panels. The Greenfield Online and Ciao
    panels are some of the largest Internet-based panels available.
    As of December 31, 2005, our Internet panels consisted of
    over 4 million panelists that had double opted-in to
    participate in our surveys. We continue to actively expand the
    breadth and demographics of our panels to address the needs of
    our clients. As part of this strategy we completed the
    acquisitions of the OpinionSurveys.com panel from The Dohring
    Company in 2004, and the acquisitions of Rapidata.net, Inc.,
    (Rapidata), Zing Wireless, Inc.,
    (goZing), and Ciao AG, (Ciao) in
    2005. As a result of these acquisitions and our continued
    recruitment of new panelists we now have proprietary panels in
    over 20 countries around the world. We perform extensive
    screening and analysis of our panelists, which allows us to
    offer our clients premium specialty panels comprised of people
    with similar characteristics. We have the ability to quickly
    reach appropriate target audiences within our panel for a wide
    range of client requests, including respondents in the
    healthcare, automotive, Hispanic,
    business-to-business,
    information technology and international segments. Using our
    Internet panels we completed more than 9,000 Internet-based
    marketing research projects in 2005.
|
| |  | Experienced Panel Management. Over the past 11 years
    we have developed, and through our recent acquisitions, we have
    acquired proprietary panel management techniques designed to
    maximize the efficiency and productivity of our Internet panels.
    We maintain a fresh and active panel by continually adding new
    members and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

5



---



##### Table of Contents



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | seeking additional information from our panelists. These panel
    management techniques allow us to efficiently target our survey
    invitations and create relevant cash and
    non-cash incentive
    programs for our panelists. Additionally, we maintain policies
    to protect the confidentiality of our panelists personal
    information and prohibit marketing to our panelists using
    information obtained through their survey participation. We
    believe that these policies have enabled us to develop a
    relationship of trust with our panelists and foster a climate
    that encourages their continued participation in our surveys.                                                                                                                        
|
| |  | Complete Internet Survey Solutions. We offer a wide range
    of Internet survey solutions that enable the global marketing
    research industry to conduct Internet-based research. Our
    complete range of survey solutions facilitates the migration
    from traditional survey methods to Internet-based methods and
    eliminates the need for our clients to develop their own
    Internet research capabilities.                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | Focused Sales Strategy. Our focused sales strategy seeks
    to incorporate our Internet survey solutions into our
    clients research proposals that they present to the
    end-users of the data we collect. Our client relationships are
    strengthened by this cooperative sales strategy which allows us
    to leverage their global sales forces as a distribution channel
    for our products and services. We do not compete with our
    clients for custom marketing research business from end-users.                                                                                                                                                                                                                                                                       
|
| |  | Well-Established Brand and Commitment to Customer
    Service. Greenfield Online was founded in 1994 and we
    conducted our first North American Internet-based marketing
    research project in 1995. Ciao was founded in 1999 and conducted
    its first European Internet-based marketing research project in
    2001. Since our inception, we have built and refined our
    Internet panels and maintained a commitment to industry-leading
    customer service. Our early entry into the Internet-based survey
    marketing research industry, the quality and global reach of our
    Internet panels and our commitment to technology and customer
    service have enabled us to develop strong brands within the
    marketing research industry in North America and Europe.



| |                        
| | -----------------------
| | Comparison
    Shopping





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Ciao Community. The Ciao community is comprised of
    consumers from all walks of life who have chosen to become
    members of one of our localized Ciao shopping portals in order
    to contribute product and store reviews and to take advantage of
    a number of interactive community features such as guestbooks,
    buddy lists and personal profiles that are only available to
    registered members. As of December 31, 2005, our Ciao
    shopping portals had over 2 million registered members. We
    believe that our strong community of review writers is an
    important asset as it creates a constant inflow of fresh,
    original content that positively differentiates us from our
    competitors and helps us attract additional visitors to our
    websites.
|
| |  | Our Product Reviews. We believe that the product and
    store reviews posted by members of the Ciao community are
    valuable content that helps consumers make informed purchasing
    decisions. Since our inception, members of the Ciao community
    have posted several million product and store reviews on our
    shopping portals. These reviews may be written in any of
    6 languages, with a minimum word count of 100 words
    per review. We believe that this makes our product review
    database one of the largest in the world, giving us an advantage
    over many of our competitors.                                                                                                                                                                                  
|
| |  | Our Pan-European Presence. We operate Ciao shopping
    portals in Germany, France, the United Kingdom, Spain, Italy and
    the Netherlands. Many of our competitors are operating websites
    in their respective home markets only. We believe that our
    pan-European reach provides a competitive advantage as it
    enables us to                                                                                                                                                                                                                                                                                                                                                                                                                                                         

6



---



##### Table of Contents



| |  |                                                                                                                                                                                                    
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | transfer learnings from one country to another, increases our
    brand recognition with larger advertisers and retailers and
    diversifies our revenue risk in the comparison shopping business.

Our Strategy






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Drive Migration to Internet-Based Marketing Research. We
    believe the Internet is the best method to reach a
    representative population sample as compared to the telephone
    and other traditional survey methods. As a result there is an
    ongoing transition within the marketing research industry to
    Internet-based survey solutions. We will continue to facilitate
    this transition and capitalize on this migration by:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Increasing the Size and Diversity of our Internet Panels.
    As our Internet panels become larger and more diverse, we will
    be able to reach smaller segments of the population allowing us
    to specifically target our clients research needs and
    offer higher value data.                                                                                                                                                                                                                                           
|
| |  | Expanding the Range of Our Specialty Panels. Our current
    specialty panels include healthcare, automotive, Hispanic,
    business-to-business
    and information technology segments. Our ability to capture and
    access specific demographic information about our panelists
    allows us to provide our clients with access to research
    audiences that are difficult or impossible to find through other
    methods.                                                                                                
|
| |  | Developing New and Innovative Internet-Based Survey
    Solutions. New solutions, such as our media testing
    capabilities, integrate images, sound, video and other media
    directly into our surveys and provide a more interactive and
    engaging process than current methods.                                                                                                                                                                                                                                           
|
| |  | Providing Faster and Better Service than Traditional Data
    Collection Methods. Our clients seek suppliers that can
    provide high-quality panels and fast and accurate bid-turnaround
    and survey programming, allowing them more time to analyze
    survey data and provide timely, quality research for their
    customers. To achieve this strategy, we leverage our automated
    bidding and panel management technology, skilled project
    management staff and our continuous survey programming
    capability.



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Diversify our Sources of Survey Respondents. In order to
    supplement the ability of our Internet panels to provide survey
    respondents and diversify the sources of our respondents, we
    intend to develop random Internet sampling techniques, which
    allow us to gather survey opinions from individuals who are not
    members of our Internet panels. Through random Internet sampling
    we are able to access the Internet traffic of participating
    websites and present visitors to these sites with an offer to
    participate in one of our surveys. Individuals who accept this
    offer are routed to our websites, where proprietary techniques
    match the individual with an appropriate survey.      
|
| |  | Expand Internationally. During 2006, we intend to further
    develop our capabilities outside of North America and Europe,
    expanding the size and diversity of our Internet panels by
    adding more panelists in Asia from China, Japan and South Korea,
    and in Australia, Eastern Europe and Latin America. To
    facilitate this panel growth we have engaged qualified panel
    managers at Ciao who are focused on combining our proprietary
    panel management techniques with local knowledge to develop more
    responsive and representative panels in their regions. We
    believe the migration of data collection to the Internet in the
    international market represents a significant growth opportunity.

7



---



##### Table of Contents





| |   |                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------
| |  | Expand Comparison Shopping. Our strategies to grow our
    comparison shopping business are as follows:



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Improve and Enhance Product and Technology. We believe
    that our comparison shopping product and technology are not yet
    optimized to take full advantage of the market opportunity. As
    we believe that technology and user experience are critical to
    our success, we intend to improve and enhance our existing
    product and technology to make our Ciao comparison shopping
    portals more efficient, thereby improving our visitors
    experience, and our users loyalty.
|
| |  | Increase Number of Categories, Products and Offers. We
    believe that the traffic to our comparison shopping portals
    would benefit from the display of a broader range of consumer
    product categories, products and associated offers. We therefore
    intend to launch a number of new categories, enhance existing
    categories and add more products and merchant offers to our
    online catalog.                                                                                
|
| |  | Expand Geographically. We believe that our service can be
    further extended to cover additional geographies. We are already
    present with localized shopping portals in Germany, France, the
    United Kingdom, Spain, Italy and the Netherlands, and are
    considering the launch of our service in additional countries
    inside and outside of Europe.                                                                                                                               
|
| |  | Increase Online Marketing Efforts. We believe that
    heightened awareness of our Ciao brand and service would lead to
    additional traffic to our comparison shopping portals. We intend
    to promote our service more aggressively through
    performance-based advertising targeted at consumers who are
    looking to purchase products featured in our online catalog.                                                                                                                 
|
| |  | Broaden Merchant and Advertiser Base. We believe that the
    number of merchant and advertising customers featured on our
    shopping portals is directly related to the conversion rate of
    website visits to paid click-throughs. We therefore intend to
    expand our partnerships with online retailers, advertising
    agencies and direct advertising customers and to cement our
    existing relationships within these customer groups.                                            

Our Internet Panels


opted-in




| |                  
| | -----------------
| | Panel Acquisition





8



---



##### Table of Contents



opted-in




| |                 
| | ----------------
| | Panel Management





| |   |                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The registration process takes place before a panel member is
    invited to participate in a survey, so there is no incentive to
    submit anything but accurate information;                                                               
|
| |  | Survey invitations are delivered to respondents according to the
    demographic requirements of a survey and the panel member does
    not know the demographic information used to select them as
    potentially qualifying for the survey;
|
| |  | Survey takers are only allowed one opportunity to take a survey
    and are not able to change their answers during multiple
    attempts to qualify for the survey; and                                                                      
|
| |  | In North America, only one email address is allowed per physical
    household address, which prevents establishing multiple accounts
    for the purpose of taking surveys multiple times.                                                   



| |                 
| | ----------------
| | Panel Incentives



9



---



##### Table of Contents



Our Products and Services




| |                                        
| | ---------------------------------------
| | Our Internet-Based Survey
    Solutions





| |             
| | ------------
| | Full-Service



|                      |  |                                                                                                                        |  |                                                                                                                                                                                               
|--------------------- |  | ---------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                     
|Product               |  | Description                                                                                                            |  | Representative Application                                                                                                                                                                    
|                     
|Tracking Studies      |  | Studies that are fielded over time to determine advertising
    awareness and brand usage                              |  | Automobile manufacturers track consumer awareness of their brand
    to evaluate the effectiveness of their media spending                                                                    
|Conjoint Studies      |  | Studies that conduct a trade-off analysis of
    features/functionality                                              |  | Mobile phone carriers use these studies to design service plans
    with features that will attract the most consumers                                                                        
|Concept Testing       |  | Studies that present product concepts to potential consumers                                                           |  | Consumer packaged goods companies test a range of new product
    offering to identify those with the most appeal to consumers                                                                
|Media/ Audio Testing  |  | Studies to evaluate the persuasiveness and key message recall
    associated with advertising                          |  | Health and beauty care manufacturers use these studies to test
    different versions of a new advertising campaign to see which is
    most likely to result in the purchase of their product
|In-Home Usage Testing |  | Studies that ask respondents to try new products in their home                                                         |  | Over-the-counter remedy manufacturers ask consumers to test
    their products and provide feedback on the Internet                                                                           
|Omnibus Studies       |  | Shared-cost studies that enable several clients to pool small
    sets of questions and receive feedback within 3 days |  | All industries take advantage of this product to get fast
    answers to urgent marketing questions                                                                                           

10



---



##### Table of Contents





| |                     
| | --------------------
| | Sample
    Solutions





| |                        
| | -----------------------
| | Comparison
    Shopping



Our Customers


GfK-AG GfK-AG, GfK-Custom (GfK-CRI), GfK-ARBOR, GfK-AG GfK-CRI GfK-ARBOR, GfK-CRI GfK-ARBOR GfK-CRI GfK-AG.




11



---



##### Table of Contents





Sales and Marketing




Competition




e-Rewards,




12



---



##### Table of Contents



T-Online


Technology and Intellectual Property


backed-up co-location


Confirmit Surveycenter


Confirmit Confirmit






| |   |                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | employing a geographically distributed multi-site architecture
    of web sites and applications creating separately located and
    redundant back-up
    systems, which minimizes the risk of a total shutdown due to a
    denial of service attack targeted at a specific
    location; and                                
|
| |  | subscribing to multiple Internet Service Providers and having
    been assigned multiple network blocks or groups of Internet
    addresses within these ISPs, which provides us with flexibility
    in switching between Internet addresses and service providers
    during an attack targeting specific Internet addresses.



13



---



##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Search and Navigation.Our technology allows users to
    find products in our catalog by navigating through product
    categories, filtering by product attributes or searching by a
    keyword-based free-text search. We also provide features to
    compare product details, attributes, and price and review
    information for a specific product. We display and sort product
    data in the search and category navigation based on economic
    relevance metrics calculated by dedicated algorithms.                                                                                                                                      
|
| |  | Product Catalog and Merchant Offer Integration.Our
    catalog merchant-facing applications allow us to integrate
    product catalogs from third-party data vendors. We apply
    rule-based algorithms to convert and normalize external product
    data to a standardized format and map it to our categories and
    navigation attributes. We also have management applications to
    maintain and build our own product catalogs. We have integrated
    third-party data integration software, which allows us to
    accelerate the import of external product catalogs and also
    improve the update speed and data quality of our catalog.
|
| |  | Community Platform.Our community platform provides a
    login area where visitors are able to register and write product
    or store reviews. Our integrated review rating mechanism is
    designed to categorize the quality of reviews and helps to
    maintain relevant and useful consumer information. The platform
    also provides various different extended community features like
    tell-a-friend, alerting
    and fraud notification.                                                                                                                                                                                               

Greenfield Greenfield Online Greenfield Greenfield Online Greenfield Online Greenfield Power your
Research sm Power Your Research With Our Experience, Our People, Our
Technology sm SAM sm Survey Alerts
Manager sm Research
Revolution ® NetReach ® FieldSource ® OpinionSurveys.com ® Greenfield or Greenfield Online OpinionSurveys.com OpinionSurvey.com OpinionSurvey


Financial Information about Geographic Areas


10-K.


14



---



##### Table of Contents



Backlog




Employees




Available Information


10-K, 10-Q, 8-K


15



---



##### Table of Contents






Item 1A.


10-K,




| |                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not be successful at implementing important new
    business initiatives and key strategies which may have a
    material negative impact on our financial condition and results
    of operations.





| |   |                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | rightsizing of the North American business to bring expenses
    in line with current revenue levels;                                                                                                    
|
| |  | shifting to a relationship-based management sales
    strategy;                                                                                                                                          
|
| |  | targeting new client relationships and increasing our market
    share in North America;                                                                                                                 
|
| |  | implementing a new pricing strategy;                                                                                                                                                                     
|
| |  | reinvigorating our North American sales efforts;                                                                                                                                                         
|
| |  | continuing to build our panel to support revenue growth and
    improving panel management techniques;                                                                                                   
|
| |  | improving quality control and client satisfaction;                                                                                                                                                       
|
| |  | accelerating the integration of our Ciao subsidiary; and                                                                                                                                                 
|
| |  | developing and implementing new internal use software such as
    our new Unified Panel System for panel and project management,
    and our new GoQuote system, an online quotation ordering
    system.





| |                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to maintain the size or demographic
    composition of our Internet panels, our clients may stop using
    our products and services.



16



---



##### Table of Contents







| |                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------
| | If the rate at which our panelists respond to our surveys
    decreases, we may not be able to meet our clients
    needs.





| |   |                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our email-based survey invitations are not received by our
    panelists due to the use of spam-filtering and blocking software
    by individuals, corporations and Internet service providers;
|
| |  | our panelists become dissatisfied with the forms of
    participation incentives we offer; or                                                                                                   
|
| |  | our panelists respond less frequently to our surveys, or stop
    responding altogether due to excessive requests for
    participation from us or other researchers.                           





| |                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If the rate at which our panelists respond to our surveys
    decreases, we may be required to expend additional funds to
    retain our panelists or provide additional incentives to
    encourage panelist participation.





| |                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We derived approximately 40% of our total net revenue from
    ten clients in fiscal year 2005. In our reportable segments of
    North America and Europe, we derived approximately 44% and 51%
    of net revenue from ten clients in fiscal year 2005,
    respectively. If we were to lose, or if there were a material
    reduction in business from, these clients, our net revenue might
    decline substantially.

GfK-AG


17



---



##### Table of Contents







| |                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not be able to successfully compete with other
    Internet survey solutions providers, marketing research firms
    and other potential competitors which may cause us to lose sales
    or experience lower margins on sales.

e-Rewards,








| |                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Consolidation in the marketing research industry may
    result in fewer potential clients for us and a smaller market in
    general if companies with existing Internet-based panels combine
    with companies without such panels.

GfK-AG, Gfk-AGs


18



---



##### Table of Contents





| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | If our clients develop their own Internet-based panels, we
    may lose some or all of their business.





| |                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If the marketplace significantly slows its migration from
    traditional data collection methods to Internet-based marketing
    research data collection, our growth may slow or cease
    altogether.





| |                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------
| | If we do not keep pace with technological change, we may
    be unable to implement our business strategy
    successfully.





| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to manage and support our growth
    effectively, we may not be able to execute our business strategy
    successfully.





19



---



##### Table of Contents









| |                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to achieve international growth of our
    Internet panels or to overcome other risks of international
    operations, we may be unable to conduct business on a global
    level.





| |   |                                                                                                 
| | - | ------------------------------------------------------------------------------------------------
| |  | more restrictive privacy and data protection laws;                                              
|
| |  | difficulty in recruiting and managing employees in foreign
    countries;                       
|
| |  | aversion to U.S. companies or non-domestic companies in
    the regions where we plan to expand;
|
| |  | unexpected changes in regulatory requirements;                                                  
|
| |  | export controls relating to encryption technology;                                              
|
| |  | currency exchange rate fluctuations;                                                            
|
| |  | problems collecting accounts receivable and longer collection
    periods;                      
|
| |  | potentially adverse tax consequences;                                                           
|
| |  | political instability; and                                                                      
|
| |  | Internet access restrictions.                                                                   





| |                                                                                
| | -------------------------------------------------------------------------------
| | Currency exchange rate fluctuations could lower our
    revenue and net income.





| |                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have significant operations in India that could be
    limited or prohibited by changes in the political or economic
    stability of India or government policies in India or the United
    States.



20



---



##### Table of Contents







| |                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------
| | Acquisitions or investments in other companies may have a
    negative impact on our business and our stock price.





| |   |                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | difficulties with the integration and assimilation of the
    acquired business, including maintaining the frequency of survey
    participation of panelists who join our panel through
    acquisitions, and operational inefficiencies resulting from
    operating with multiple and potentially incompatible systems
    until integration is complete;
|
| |  | diversion of our management teams attention from other
    business concerns;                                                                                                                                                                                                                                                                              
|
| |  | availability of favorable acquisition or investment
    financing;                                                                                                                                                                                                                                                                                          
|
| |  | potential undisclosed liabilities associated with
    acquisitions;                                                                                                                                                                                                                                                                                         
|
| |  | loss of clients resulting from their desire to diversify
    their online sample data sources as we increase our market share
    by acquiring or investing in complementary businesses;                                                                                                                                                                    
|
| |  | loss of key employees of any acquired business; and                                                                                                                                                                                                                                                                                                         
|
| |  | our ability to successfully operate and grow business units
    within the acquired companies that provide products and services
    other than Internet survey solutions.                                                                                                                                                                                  





| |                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A substantial portion of our comparison shopping portal
    traffic is derived through optimization of search engine results
    and changes in these algorithms may cause our comparison
    shopping revenue to decline.



21



---



##### Table of Contents







| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | Our success depends on our ability to retain the current
    members of our senior management team and other key
    personnel.





| |                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we fail to continue to attract and retain project
    management professionals and other highly-skilled personnel, we
    may be unable to successfully execute our business
    strategy.





| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We do not have adequate plans or procedures in place to
    allow us to rapidly rebuild our operational and technical
    infrastructure in case of a catastrophic event.

denial-of


22



---



##### Table of Contents





| |                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be at a competitive disadvantage if we are unable
    to protect our proprietary rights or if we infringe on the
    proprietary rights of others, and related litigation could be
    time consuming and costly.







| |                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Fluctuations in our quarterly operating results may cause
    our stock price to decline and limit our stockholders
    ability to sell our common stock in the public market.





| |   |                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | fluctuations in general economic conditions;                                                                                                               
|
| |  | demand for marketing research products and services
    generally;                                                                                         
|
| |  | fluctuations in the marketing research budgets of the
    end-users serviced by our marketing research clients;                                            
|
| |  | the failure of our large clients to win Internet-based
    marketing research projects;                                                                    
|
| |  | fluctuations in foreign currency exchange rates;                                                                                                           
|
| |  | lower than expected project win-rates;                                                                                                                     
|
| |  | the development of products and services by our
    competitors;                                                                                           
|
| |  | project cancellations by our clients or changes in project
    completion dates by our clients, effecting the timing of our
    recognition of revenue; and
|
| |  | changes in search engine algorithms.                                                                                                                       

23



---



##### Table of Contents





quarter-to quarter-to




| |                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We might have difficulty obtaining additional capital,
    which could prevent us from achieving our business objectives.
    If we are successful in raising additional capital, it may have
    a dilutive effect on our stockholders.





| |                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Government regulations could limit our Internet activities
    or result in additional costs of doing business and conducting
    marketing research on the Internet.



e-commerce. e-commerce


24



---



##### Table of Contents















| |   |                                                                    
| | - | -------------------------------------------------------------------
| |  | user privacy and expression;                                       
|
| |  | the rights and safety of children;                                 
|
| |  | intellectual property;                                             
|
| |  | information security;                                              
|
| |  | anti-competitive practices;                                        
|
| |  | the convergence of offline channels with Internet commerce;
    and
|
| |  | taxation and pricing.                                              






Item 1B.




25



---



##### Table of Contents






Item 2.






|                                                        |  |                  |                 |                 |                   |   |       | 
|------------------------------------------------------- |  | ---------------- | --------------- | --------------- | ----------------- | - | ----- | 
|                                                        |  |                  |                 | Remaining Lease |                  
|                                                        |  |                  |                 | Obligation      |                  
|Address/Location                                        |  | Termination Date |                 |                 | December 31, 2005 |  
|                                                        |  |                  |                 |                 |                   |  
|21 & 15 River Road, Wilton, Connecticut                 |  |                  | November, 2009  |                 |                   | $ | 4,320 | 
|16501 Ventura Blvd., Ste. 250, Encino, California       |  |                  | July, 2009      |                 |                   |   | 689   | 
|222 Kearney St., Ste. 500, San Francisco, California*   |  |                  | September, 2009 |                 |                   |   | 814   | 
|800 Turnpike St., N. Andover, Massachusetts             |  |                  | October, 2008   |                 |                   |   | 106   | 
|110 Sheppard Ave., Ste. 200, East Toronto, Canada       |  |                  | November, 2010  |                 |                   |   | 1,628 | 
|First Floor Unitech Trade Centre, Gurgaon, India        |  |                  | March, 2007     |                 |                   |   | 228   | 
|Leopoldstraße 236, 80807 Munich, Germany                |  |                  | October, 2010   |                 |                   |   | 1,159 | 
|18 rue Horace Vernet Issy Les Moulineaux, Paris, France |  |                  | March, 2014     |                 |                   |   | 720   | 
|Strawinskylaan 1127, Amsterdam, the Netherlands         |  |                  | April, 2008     |                 |                   |   | 112   | 
|Str. Stefan cel Mare nr. 56, Timisoara, Romania         |  |                  | November, 2007  |                 |                   |   | 110   | 
|P-ta Mocsony nr. 2, Timisoara, Romania                  |  |                  | March, 2006     |                 |                   |   | 2     | 
|Callao 1, Office 209, Madrid, Spain                     |  |                  | June, 2006      |                 |                   |   | 27    | 
|Callao 1, Office 303, Madrid Spain                      |  |                  | May, 2006       |                 |                   |   | 8     | 
|11 Maiden Lane, London, UK                              |  |                  | December, 2008  |                 |                   |   | 283   | 






|  |                                                                                                                                                                
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Subleased in March 2006 for the remaining lease term. The
    payments due under the sublease are substantially similar to our
    obligations under the lease.




Item 3.




26



---



##### Table of Contents






Item 4.




PART II







|        |                                                                                                                 
|------- | ----------------------------------------------------------------------------------------------------------------
|Item 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER
    MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

a) Market Information




|     |                                          |      |   |       |     |  |   |       | 
|---- | ---------------------------------------- | ---- | - | ----- | --- |  | - | ----- | 
|     |                                          | High |   |       | Low | 
|     |                                          |      |   |       |     | 
|2004 |                                          |      |   |       |     |  |   |      
|     | Third Quarter (commencing July 16, 2004) |      | $ | 22.18 |     |  | $ | 14.50 | 
|     | Fourth Quarter                           |      | $ | 24.10 |     |  | $ | 17.28 | 
|2005 |                                          |      |   |       |     |  |   |      
|     | First Quarter                            |      | $ | 21.79 |     |  | $ | 16.11 | 
|     | Second Quarter                           |      | $ | 20.19 |     |  | $ | 11.55 | 
|     | Third Quarter                            |      | $ | 13.90 |     |  | $ | 5.44  | 
|     | Fourth Quarter                           |      | $ | 5.86  |     |  | $ | 4.47  | 

b) Holders of the Corporations Capital Stock




c) Dividends




d) Recent Sales of Unregistered Securities




e) Issuer Purchases of Equity Securities




27



---



##### Table of Contents






Item 6.


SELECTED CONSOLIDATED FINANCIAL DATA


The following selected consolidated financial data should be
read in conjunction with Managements Discussion and
Analysis of Financial Condition and Results of Operations
and the Consolidated Financial Statements and related notes,
which are included elsewhere in this Annual Report on
Form 10-K. The
selected Consolidated Statement of Operations data for each of
the fiscal years ended December 31, 2005, 2004 and 2003 and
the selected Consolidated Balance Sheet data as of
December 31, 2005 and 2004 are derived from our audited
Consolidated Financial Statements, which are included elsewhere
in this Annual Report on
Form 10-K. The
selected Consolidated Statements of Operations data for the
fiscal year ended December 31, 2002 and 2001 and the
selected Consolidated Balance Sheet data as of December 31,
2003, 2002, and 2001 are derived from audited Consolidated
Financial Statements not included in this Annual Report on
Form 10-K.


|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |        |        |   |   |         |        | 
|---------------------------------------------------------------------- | -------------------------------------------------------------------------- | ------------------------------------- | ------- | ------ | ---- | - | ------- | ------- | - | - | ------ | ------ | - | ---- | ------ | ------ | - | - | ------- | ------ | 
|                                                                       |                                                                            | Years Ended December 31,              |        
|                                                                       |                                                                            |                                       |        
|                                                                       |                                                                            | 2005                                  |         |        | 2004 |   |         | 2003    |   |   | 2002   |        |   | 2001 |       
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|                                                                       |                                                                            | (In thousands, except per share data) |        
|Consolidated Statements of Operations Data:                            |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |        |        |   |   |         |       
|Net revenues:                                                          |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |        |        |   |   |         |       
|                                                                       | Internet survey solutions(1)                                               |                                       | $       | 89,179 |      |   | $       | 44,428  |   |   | $      | 25,868 |   |      | $      | 14,416 |   |   | $       | 4,072  | 
|                                                                       | Custom research(2)                                                         |                                       |         |       |      |   |         |        |   |   |        |       |   |      |        | 470    |   |   |         | 9,715  | 
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|Total net revenues                                                     |                                                                            |                                       | 89,179  |        |      |   | 44,428  |         |   |   | 25,868 |        |   |      | 14,886 |        |   |   | 13,787  |       
|Cost of revenues                                                       |                                                                            |                                       | 24,327  |        |      |   | 11,081  |         |   |   | 8,884  |        |   |      | 5,409  |        |   |   | 8,097   |       
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|Gross profit                                                           |                                                                            |                                       | 64,852  |        |      |   | 33,347  |         |   |   | 16,984 |        |   |      | 9,477  |        |   |   | 5,690   |       
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|Operating expenses:                                                    |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |        |        |   |   |         |       
|                                                                       | Selling, general and administrative                                        |                                       |         | 40,682 |      |   |         | 21,454  |   |   |        | 12,127 |   |      |        | 10,123 |   |   |         | 15,148 | 
|                                                                       | Panel acquisition expenses                                                 |                                       |         | 3,762  |      |   |         | 2,448   |   |   |        | 1,421  |   |      |        | 713    |   |   |         | 351    | 
|                                                                       | Depreciation and amortization                                              |                                       |         | 6,965  |      |   |         | 1,292   |   |   |        | 1,113  |   |      |        | 1,802  |   |   |         | 2,654  | 
|                                                                       | Research and development                                                   |                                       |         | 2,836  |      |   |         | 1,002   |   |   |        | 626    |   |      |        | 747    |   |   |         | 1,750  | 
|                                                                       | Impairment and restructuring charges                                       |                                       |         | 91,758 |      |   |         |        |   |   |        |       |   |      |        |       |   |   |         |       | 
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|Total operating expenses                                               |                                                                            |                                       | 146,003 |        |      |   | 26,196  |         |   |   | 15,287 |        |   |      | 13,385 |        |   |   | 19,903  |       
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|Operating (loss) income                                                |                                                                            |                                       | (81,151 | )      |      |   | 7,151   |         |   |   | 1,697  |        |   |      | (3,908 | )      |   |   | (14,213 | )     
|Total other (expense) income                                           |                                                                            |                                       | (561    | )      |      |   | (1,022  | )       |   |   | 101    |        |   |      | 945    |        |   |   | (3,074  | )     
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|(Loss) income before income taxes                                      |                                                                            |                                       | (81,712 | )      |      |   | 6,129   |         |   |   | 1,798  |        |   |      | (2,963 | )      |   |   | (17,287 | )     
|(Benefit) provision for income taxes                                   |                                                                            |                                       | (15,753 | )      |      |   | 411     |         |   |   | 150    |        |   |      | (569   | )      |   |   |        |       
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|Net (loss) income                                                      |                                                                            |                                       | (65,959 | )      |      |   | 5,718   |         |   |   | 1,648  |        |   |      | (2,394 | )      |   |   | (17,287 | )     
|Less: Accretion of Series C-2 redeemable preferred stock
    dividends |                                                                            |                                       |        |        |      |   |        |         |   |   | (63    | )      |   |      |       |        |   |   |        |       
|                                                                       | Charge to common stockholders for Series B convertible
    preferred stock |                                       |         |       |      |   |         | (28,054 | ) |   |        |       |   |      |        | (3,873 | ) |   |         |       | 
|                                                                       | Cumulative dividends on Series B convertible preferred stock               |                                       |         |       |      |   |         | (382    | ) |   |        | (673   | ) |      |        | (28    | ) |   |         |       | 
|                                                                       | Income allocable to participating preferred securities                     |                                       |         |       |      |   |         | (1,564  | ) |   |        | (761   | ) |      |        |       |   |   |         |       | 
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       
|Net (loss) income available to common stockholders                     |                                                                            | $                                     | (65,959 | )      |      | $ | (24,282 | )       |   | $ | 151    |        |   | $    | (6,295 | )      |   | $ | (17,287 | )     
|                                                                       |                                                                            |                                       |         |        |      |   |         |         |   |   |        |        |   |      |       

28



---



##### Table of Contents



|                                                             |         |                                       |   |        |      |  |   |       |   |  |      |       |  |      |   |       |   |  |   |        |  
|------------------------------------------------------------ | ------- | ------------------------------------- | - | ------ | ---- |  | - | ----- | - |  | ---- | ----- |  | ---- | - | ----- | - |  | - | ------ | -
|                                                             |         | Years Ended December 31,              |  
|                                                             |         |                                       |  
|                                                             |         | 2005                                  |   |        | 2004 |  |   | 2003  |   |  | 2002 |       |  | 2001 |  
|                                                             |         |                                       |   |        |      |  |   |       |   |  |      |       |  |      |  
|                                                             |         | (In thousands, except per share data) |  
|Net (loss) income per share available to common stockholders |         |                                       |   |        |      |  |   |       |   |  |      |       |  |      |   |       |   |  |   |       
|                                                             | Basic   |                                       | $ | (2.72  | )    |  | $ | (2.70 | ) |  | $    | 0.07  |  |      | $ | (6.42 | ) |  | $ | (18.08 | )
|                                                             | Diluted |                                       |   | (2.72  | )    |  |   | (2.70 | ) |  |      | 0.06  |  |      |   | (6.42 | ) |  |   | (18.08 | )
|Weighted average shares outstanding                          |         |                                       |   |        |      |  |   |       |   |  |      |       |  |      |   |       |   |  |   |       
|                                                             | Basic   |                                       |   | 24,217 |      |  |   | 8,985 |   |  |      | 2,054 |  |      |   | 981   |   |  |   | 956    |  
|                                                             | Diluted |                                       |   | 24,217 |      |  |   | 8,985 |   |  |      | 2,347 |  |      |   | 981   |   |  |   | 956    |  

|                                 |                                       |                   |   |         |       |  |   |         |       |  |      |        |     |      |   |        |       |  |   |         |        | 
|-------------------------------- | ------------------------------------- | ----------------- | - | ------- | ----- |  | - | ------- | ----- |  | ---- | ------ | --- | ---- | - | ------ | ----- |  | - | ------- | ------ | 
|                                 |                                       | December 31,      |  
|                                 |                                       |                   |  
|                                 |                                       | 2005              |   |         | 2004  |  |   | 2003    |       |  | 2002 |        |     | 2001 |  
|                                 |                                       |                   |   |         |       |  |   |         |       |  |      |        |     |      |  
|                                 |                                       | ($ in thousands)  |  
|Consolidated Balance Sheet Data: |                                       |                   |   |         |       |  |   |         |       |  |      |        |     |      |   |        |       |  |   |        
|                                 | Cash and cash equivalents             |                   | $ | 20,623  |       |  | $ | 96,082  |       |  | $    | 3,721  |     |      | $ | 1,864  |       |  | $ | 1,056   |       
|                                 | Investments in marketable securities  |                   |   |        |       |  |   | 17,400  |       |  |      |       |     |      |   |       |       |  |   |        |       
|                                 | Total assets                          |                   |   | 160,860 |       |  |   | 135,306 |       |  |      | 11,929 |     |      |   | 8,724  |       |  |   | 9,102   |       
|                                 | Capital lease obligations:            |                   |   |         |       |  |   |         |       |  |      |        |     |      |   |        |       |  |   |         |       
|                                 |                                       | Current portion   |   |         | 2,061 |  |   |         | 1,253 |  |      |        | 874 |      |   |        | 895   |  |   |         | 569    | 
|                                 |                                       | Long-term portion |   |         | 2,032 |  |   |         | 1,877 |  |      |        | 705 |      |   |        | 1,102 |  |   |         | 1,968  | 
|                                 | Debt:                                 |                   |   |         |       |  |   |         |       |  |      |        |     |      |   |        |       |  |   |         |       
|                                 |                                       | Current portion   |   |         |      |  |   |         |      |  |      |        |    |      |   |        | 1,216 |  |   |         | 5,115  | 
|                                 |                                       | Long-term portion |   |         |      |  |   |         |      |  |      |        |    |      |   |        |      |  |   |         | 16,171 | 
|                                 | Series C-2 redeemable preferred stock |                   |   |        |       |  |   |        |       |  |      | 943    |     |      |   | 821    |       |  |   |        |       
|                                 | Series B convertible preferred stock  |                   |   |        |       |  |   |        |       |  |      | 9,114  |     |      |   | 8,441  |       |  |   |        |       
|                                 | Total stockholders equity (deficit)  |                   |   | 134,493 |       |  |   | 123,078 |       |  |      | (6,327 | )   |      |   | (8,526 | )     |  |   | (21,603 | )     

|                                                 |                                                 |                          |   |        |      |  |   |       |  |  |      |       |  |      |   |     |  |  |   |         |  
|------------------------------------------------ | ----------------------------------------------- | ------------------------ | - | ------ | ---- |  | - | ----- |  |  | ---- | ----- |  | ---- | - | --- |  |  | - | ------- | -
|                                                 |                                                 | Years Ended December 31, |  
|                                                 |                                                 |                          |  
|                                                 |                                                 | 2005                     |   |        | 2004 |  |   | 2003  |  |  | 2002 |       |  | 2001 |  
|                                                 |                                                 |                          |   |        |      |  |   |       |  |  |      |       |  |      |  
|                                                 |                                                 | ($ in thousands)         |  
|Other Consolidated Financial and Operating Data: |                                                 |                          |   |        |      |  |   |       |  |  |      |       |  |      |   |     |  |  |   |        
|                                                 | Cash provided by (used in) operating activities |                          | $ | 23,661 |      |  | $ | 5,273 |  |  | $    | 4,051 |  |      | $ | 697 |  |  | $ | (10,990 | )






|    |                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Internet survey solutions includes services revenues from the
    collection of survey data for sale to marketing research
    companies as well as comparison shopping revenues from our
    European segment.
|   
|(2) | Custom research includes revenues from the line of business that
    we sold to Taylor Nelson Sofres Operations, Inc. in January 2002.                                                                         

29



---



##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
    AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial
condition and results of operations should be read in
conjunction with our Consolidated Financial Statements and
related notes starting on page 56 of this Annual Report on
Form 10-K. This
discussion contains forward-looking statements that involve
risks and uncertainties. Our actual results could differ
materially from those anticipated in these forward-looking
statements as a result of certain factors, including those
discussed in Risk Factors in Item 1A in
Section I. See Safe Harbor Statement on
page 1 of this Annual Report on
Form 10-K.


Segment Information


10-K.


Overview








30



---



##### Table of Contents



Key Historical Events that Impact Our Business






U.S.-based


around-the


one-for-14




31



---



##### Table of Contents







10-K




32



---



##### Table of Contents





   






33



---



##### Table of Contents



Explanation of Key Financial Statement Captions




| |             
| | ------------
| | Net Revenues





| |   |                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Full Service  we program our clients
    surveys, host them on our website infrastructure, invite our
    panelists to take the surveys and deliver the compiled data to
    our clients for their analysis and presentation to their clients.
|
| |  | Sample Solutions  clients that have their own
    programming capabilities, but have limited or no access to
    survey respondents, can purchase controlled access to our
    Internet panels.                                                







e-commerce




| |                     
| | --------------------
| | Cost of
    Revenues





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Project Personnel  Project personnel have
    three distinct roles: project management, survey programming and
    data processing. We maintain project personnel in the United
    States, Europe, Canada and India. Labor costs are specifically
    allocated to each project. We utilize a timekeeping system in
    which project personnel maintain estimates of time incurred for
    each specific project. Project personnel are paid quarterly
    bonuses

34



---



##### Table of Contents



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | based upon service quality, achievement of revenue goals
    associated with clients as well as achievement of corporate
    profit objectives.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Panelist Incentives  Our panelists receive
    cash and non-cash incentives for participating in our surveys.
    We maintain an incentive account for each member of our Internet
    panels. Our panelists accrue incentives based upon a member
    qualifying for and completing a survey within a predetermined
    timeframe. The panel member may request and receive payment of
    his or her incentives at any point in time prior to expiration.
    Incentives generally expire one year after award as outlined in
    the terms and conditions available on our panelist website. In
    February 2006, we reduced the expiration threshold for
    panelists incentives from one year to six months.
|
| |  | Data Processing  We perform the majority of
    the processing of survey data with our own professionals.
    Occasionally, we outsource certain data processing functions to
    third-party suppliers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Outside Sample  We supplement our sample with
    survey responses from individuals who are not members of our
    Internet panels. These situations occur where our Internet
    panels cannot meet customer demands because of timing, capacity
    or demographic constraints; or when we are asked to supply
    survey responses in markets in which we do not have panelists,
    typically certain international geographic sectors.                                                                                                                                                                                                                                                                         
|
| |  | Other Direct Costs  Other direct costs may
    include the following: (i) fees paid to a third party for
    healthcare-related sample data retrieved from a panel of
    healthcare professionals developed by this third-party and
    (ii) fees paid to Microsoft Corporation
    (Microsoft) for surveys completed and sold using
    data from panelists we have obtained through the Microsoft
    Network (MSN). Also included in other direct costs
    are unearned stock-based compensation charges, which are
    amortized over the service period of options granted to project
    personnel.                                                                                                     
|
| |  | Amortization of Internal Use Software  We
    include in cost of revenues amortization of capitalized software
    costs related to survey production.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



| |                                                 
| | ------------------------------------------------
| | Selling, General and
    Administrative Expenses





| |                               
| | ------------------------------
| | Panel Acquisition
    Expenses



35



---



##### Table of Contents







| |                                      
| | -------------------------------------
| | Research and Development
    Expenses



10-K,




| |                                         
| | ----------------------------------------
| | Impairment and Restructuring
    Charges

10-K.




| |                                        
| | ---------------------------------------
| | Related Party Interest
    Expense, Net

paid-in C-2 C-2




| |                                         
| | ----------------------------------------
| | (Benefit) Provision for
    Income Taxes



36



---



##### Table of Contents



Treatment of Sale of Custom Research Business




Critical Accounting Policies and Estimates






Revenue Recognition.


e-commerce


37



---



##### Table of Contents





Accounts Receivable Allowances.


Panelist Incentives.


Panel Acquisition Expenses.


Stock-Based Compensation.


Accounting for Equity Instruments That
Are Issued to Other Than Employees for Acquiring, or in
Conjunction with Selling, Goods and Services,


38



---



##### Table of Contents





Income Taxes.


Net (Loss) Income Per Share. in-the C-1 in-the-


39



---



##### Table of Contents





Goodwill and Other Intangible Assets.


Long-lived Assets.


Restructuring.


40



---



##### Table of Contents



Results of Operations




| |                                                                     
| | --------------------------------------------------------------------
| | Year Ended December 31,
    2005 Versus Year Ended December 31, 2004



| |                     
| | --------------------
| | Consolidated Results



|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |        |       |  |       |      |      |  
|------------------------------------ | ------------------------------------ | ----------------- | ------- | ---------------- | ------- | - | ----- | ----- | ----- | -- | ------ | ------ | ----- |  | ----- | ---- | ---- | -
|                                     |                                      | 2005              |         |                  | %       |   |       | 2004  |       |    | %      |       
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|                                     |                                      |                   |         | ($ in thousands) |         |   |      
|Net revenues                         |                                      | $                 | 89,179  |                  |         |   | 100.0 | %     |       | $  | 44,428 |        |       |  | 100.0 | %   
|Cost of revenues                     |                                      |                   | 24,327  |                  |         |   | 27.3  |       |       |    | 11,081 |        |       |  | 24.9  |     
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|Gross profit                         |                                      |                   | 64,852  |                  |         |   | 72.7  |       |       |    | 33,347 |        |       |  | 75.1  |     
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|Operating expenses:                  |                                      |                   |         |                  |         |   |       |       |       |    |        |        |       |  |       |     
|                                     | Selling, general and administrative  |                   |         | 40,682           |         |   |       | 45.6  |       |    |        | 21,454 |       |  |       | 48.3 |     
|                                     | Panel acquisition expenses           |                   |         | 3,762            |         |   |       | 4.2   |       |    |        | 2,448  |       |  |       | 5.5  |     
|                                     | Depreciation and amortization        |                   |         | 6,965            |         |   |       | 7.8   |       |    |        | 1,292  |       |  |       | 2.9  |     
|                                     | Research and development             |                   |         | 2,836            |         |   |       | 3.2   |       |    |        | 1,002  |       |  |       | 2.3  |     
|                                     | Impairment and restructuring charges |                   |         | 91,758           |         |   |       | 102.9 |       |    |        |       |       |  |       |     |     
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|Total operating expenses             |                                      |                   | 146,003 |                  |         |   | 163.7 |       |       |    | 26,196 |        |       |  | 59.0  |     
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|Operating (loss) income              |                                      |                   | (81,151 | )                |         |   | (91.0 | )     |       |    | 7,151  |        |       |  | 16.1  |     
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|Other (expense) income:              |                                      |                   |         |                  |         |   |       |       |       |    |        |        |       |  |       |     
|                                     | Interest (expense) income, net       |                   |         | (507             | )       |   |       | (0.6  | )     |    |        | 123    |       |  |       | 0.3  |     
|                                     | Related party interest expense, net  |                   |         |                 |         |   |       |      |       |    |        | (1,093 | )     |  |       | (2.5 | )   
|                                     | Other expense, net                   |                   |         | (54              | )       |   |       | (0.0  | )     |    |        | (52    | )     |  |       | (0.1 | )   
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|Total other expense, net             |                                      |                   | (561    | )                |         |   | (0.6  | )     |       |    | (1,022 | )      |       |  | (2.3  | )   
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|(Loss) income before income taxes    |                                      |                   | (81,712 | )                |         |   | (91.6 | )     |       |    | 6,129  |        |       |  | 13.8  |     
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|(Benefit) provision for income taxes |                                      |                   | (15,753 | )                |         |   | (17.7 | )     |       |    | 411    |        |       |  | 0.9   |     
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       
|                                     |                                      | Net (loss) income |         | $                | (65,959 | ) |       |       | (73.9 | )% |        | $      | 5,718 |  |       |      | 12.9 | %
|                                     |                                      |                   |         |                  |         |   |       |       |       |    |        |       

Net Revenues.


Gross Profit.


41



---



##### Table of Contents







| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | incentives paid to panelists of 3.4%;                                                 
|
| |  | outside sample purchases of 2.6%;                                                     
|
| |  | survey distribution costs related to goZing of 0.7%;                                  
|
| |  | publisher commissions of 0.5% related to the goZing online
    marketing business; and
|
| |  | amortization of internal use software of 0.2%.                                        





| |   |                                           
| | - | ------------------------------------------
| |  | revenue share arrangement expense of 1.3%;
|
| |  | direct project labor of 0.7%; and         
|
| |  | stock based compensation expense of 0.2%. 





business-to


Selling, General and Administrative Expenses.




42



---



##### Table of Contents













Panel Acquisition Expenses.




Depreciation and Amortization Expenses.


Impairment Charges.


43



---



##### Table of Contents





Research and Development Expenses.


Interest (Expense) Income, Net.




| |   |                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The increase in net interest expense associated with borrowings
    under a credit facility, predominantly used to help finance the
    Ciao acquisition; and                                                                                    
|
| |  | The decrease in net interest income resulting from lower cash
    balances in interest bearing instruments in 2005 versus 2004 due
    to our use of the proceeds of our 2004 public offerings in order
    to acquire Rapidata, goZing and Ciao.

Related Party Interest Expense, Net.


Other Expense, Net.


(Benefit) Provision for Income Taxes.


44



---



##### Table of Contents





Net (Loss) Income.




| |                               
| | ------------------------------
| | North American Segment Results



|                                    |  |                  |        |   |   |  |       |      |  |   |        |   |  |  |       |  
|----------------------------------- |  | ---------------- | ------ | - | - |  | ----- | ---- |  | - | ------ | - |  |  | ----- | -
|                                    |  | 2005             |        |   | % |  |       | 2004 |  |   | %      |  
|                                    |  |                  |        |   |   |  |       |      |  |   |        |  
|                                    |  | ($ in thousands) |       
|Net revenues                        |  | $                | 64,505 |   |   |  | 100.0 | %    |  | $ | 44,428 |   |  |  | 100.0 | %
|Gross profit                        |  |                  | 41,634 |   |   |  | 64.5  |      |  |   | 33,347 |   |  |  | 75.1  |  
|                                    |  |                  |        |   |   |  |       |      |  |   |        |  
|Operating income                    |  |                  | 2,108  |   |   |  | 3.2   |      |  |   | 7,151  |   |  |  | 16.1  |  
|                                    |  |                  |        |   |   |  |       |      |  |   |        |  
|Interest (expense) income, net      |  |                  | (541   | ) |   |  | (0.8  | )    |  |   | 123    |   |  |  | 0.3   |  
|Related party interest expense, net |  |                  |       |   |   |  |      |      |  |   | (1,093 | ) |  |  | (2.5  | )
|Other income (expense), net         |  |                  | 63     |   |   |  | 0.1   |      |  |   | (52    | ) |  |  | (0.1  | )
|                                    |  |                  |        |   |   |  |       |      |  |   |        |  
|Income before income taxes          |  |                  | 1,630  |   |   |  | 2.5   |      |  |   | 6,129  |   |  |  | 13.8  |  
|                                    |  |                  |        |   |   |  |       |      |  |   |        |  

Net Revenues.


Gross Profit.


45



---



##### Table of Contents









| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | incentives paid to panelists of 3.4%;                                                 
|
| |  | outside sample purchases of 2.6%;                                                     
|
| |  | survey distribution costs related to goZing of 0.7%;                                  
|
| |  | publisher commissions of 0.5% related to the goZing online
    marketing business; and
|
| |  | amortization of internal use software of 0.2%.                                        





| |   |                                           
| | - | ------------------------------------------
| |  | revenue share arrangement expense of 1.3%;
|
| |  | direct project labor of 0.7%; and         
|
| |  | stock based compensation expense of 0.2%. 







46



---



##### Table of Contents



Operating Income.




| |   |                                                                           
| | - | --------------------------------------------------------------------------
| |  | Selling, general and administrative expenses of
    $9.1 million or 42.2%;
|
| |  | Panel acquisition expenses of $0.3 million or 11.9%;                      
|
| |  | Depreciation and amortization expense of $2.6 million or
    203.6%;      
|
| |  | Research and development expense of $1.0 million or
    96.4%; and        
|
| |  | Impairment and restructuring charges of $0.4 million.                     











47



---



##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The effects of SFAS 123(R), which will be adopted beginning
    January 1, 2006;                                                                                                                                                                                                                               
|
| |  | An increase in Depreciation and amortization expense in 2006 as
    a result of the full-year-effect of acquisition-related
    intangible asset amortization for Rapidata and goZing as well as
    increasing levels of amortizable capitalized internal use
    software and depreciable computer equipment;
|
| |  | An increase in Research and development expense as a result of
    the integration and automation initiatives currently underway in
    Andover, Massachusetts;                                                                                                                                                
|
| |  | An increase in Panel acquisition expenses related to the
    expansion of our North American panels; and,                                                                                                                                                                                                      
|
| |  | Increasing sales of European sample to our clients, which is
    sourced from our European segment and charged as inter-segment
    billings to Cost of revenues to the North American segment.                                                                                                                





| |   |                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The increase in net interest expense associated with borrowings
    under a credit facility, predominantly used to help finance the
    Ciao acquisition; and                                                                                    
|
| |  | The decrease in net interest income resulting from lower cash
    balances in interest bearing instruments in 2005 versus 2004 due
    to our use of the proceeds of our 2004 public offerings in order
    to acquire Rapidata, goZing and Ciao.



C-2 C-2






| |                         
| | ------------------------
| | European Segment Results



|                         |  |      |         |   |   |  |        |  
|------------------------ |  | ---- | ------- | - | - |  | ------ | -
|                         |  | 2005 |         |   | % | 
|                         |  |      |         |   |   | 
|Net revenues             |  | $    | 28,927  |   |   |  | 100.0  | %
|                         |  |      |         |   |   | 
|Operating loss           |  |      | (83,259 | ) |   |  | (287.8 | )
|Loss before income taxes |  |      | (83,342 | ) |   |  | (288.1 | )
|                         |  |      |         |   |   | 

Net Revenues.


48



---



##### Table of Contents





Operating Loss.








| |                                                                     
| | --------------------------------------------------------------------
| | Year Ended December 31,
    2004 Versus Year Ended December 31, 2003



|                             |                                     |                  |        |        |       |  |       |      |      |   |        |        |       |  |       |      |     |  
|---------------------------- | ----------------------------------- | ---------------- | ------ | ------ | ----- |  | ----- | ---- | ---- | - | ------ | ------ | ----- |  | ----- | ---- | --- | -
|                             |                                     | 2004             |        |        | %     |  |       | 2003 |      |   | %      |       
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|                             |                                     | ($ in thousands) |       
|Net revenues                 |                                     | $                | 44,428 |        |       |  | 100.0 | %    |      | $ | 25,868 |        |       |  | 100.0 | %   
|Cost of revenues             |                                     |                  | 11,081 |        |       |  | 24.9  |      |      |   | 8,884  |        |       |  | 34.3  |     
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|Gross profit                 |                                     |                  | 33,347 |        |       |  | 75.1  |      |      |   | 16,984 |        |       |  | 65.7  |     
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|Operating expenses:          |                                     |                  |        |        |       |  |       |      |      |   |        |        |       |  |       |     
|                             | Selling, general and administrative |                  |        | 21,454 |       |  |       | 48.3 |      |   |        | 12,127 |       |  |       | 46.9 |    
|                             | Panel acquisition expenses          |                  |        | 2,448  |       |  |       | 5.5  |      |   |        | 1,421  |       |  |       | 5.5  |    
|                             | Depreciation and amortization       |                  |        | 1,292  |       |  |       | 2.9  |      |   |        | 1,113  |       |  |       | 4.3  |    
|                             | Research and development            |                  |        | 1,002  |       |  |       | 2.3  |      |   |        | 626    |       |  |       | 2.4  |    
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|Total operating expenses     |                                     |                  | 26,196 |        |       |  | 59.0  |      |      |   | 15,287 |        |       |  | 59.1  |     
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|Operating income             |                                     |                  | 7,151  |        |       |  | 16.1  |      |      |   | 1,697  |        |       |  | 6.6   |     
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|Other (expense) income:      |                                     |                  |        |        |       |  |       |      |      |   |        |        |       |  |       |     
|                             | Interest income (expense), net      |                  |        | 123    |       |  |       | 0.3  |      |   |        | (440   | )     |  |       | (1.7 | )  
|                             | Related party interest expense, net |                  |        | (1,093 | )     |  |       | (2.5 | )    |   |        | (55    | )     |  |       | (0.2 | )  
|                             | Other (expense) income, net         |                  |        | (52    | )     |  |       | (0.1 | )    |   |        | 596    |       |  |       | 2.3  |    
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|Total other (expense) income |                                     |                  | (1,022 | )      |       |  | (2.3  | )    |      |   | 101    |        |       |  | 0.4   |     
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|Income before income taxes   |                                     |                  | 6,129  |        |       |  | 13.8  |      |      |   | 1,798  |        |       |  | 7.0   |     
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|Provision for income taxes   |                                     |                  | 411    |        |       |  | 0.9   |      |      |   | 150    |        |       |  | 0.6   |     
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       
|                             |                                     | Net income       |        | $      | 5,718 |  |       |      | 12.9 | % |        | $      | 1,648 |  |       |      | 6.4 | %
|                             |                                     |                  |        |        |       |  |       |      |      |   |        |       

Net Revenues.


49



---



##### Table of Contents





Gross Profit.


Selling, General and Administrative Expenses.


Panel Acquisition Expenses.


Depreciation and Amortization Expenses.


50



---



##### Table of Contents





Interest (Expense) Income, Net. follow-on


Related Party Interest Expense, Net. C-2


Other Income (Expense), Net.


Provision for Income Taxes.


Net Income. C-2


51



---



##### Table of Contents



Liquidity and Capital Resources


C-2 follow-on






follow-on follow-on


follow-on


52



---



##### Table of Contents



follow-on


follow-on








53



---



##### Table of Contents





| |                                                                                    
| | -----------------------------------------------------------------------------------
| | Contractual Cash Obligations
    and Other Commercial Commitments and Contingencies



|                                           |  |                  |        |                          |      |   |          |      |  |   |       |  |  |      |       |  |      |   |       |            |  |   |     |  |  |   |     | 
|------------------------------------------ |  | ---------------- | ------ | ------------------------ | ---- | - | -------- | ---- |  | - | ----- |  |  | ---- | ----- |  | ---- | - | ----- | ---------- |  | - | --- |  |  | - | --- | 
|                                           |  |                  |        | Years Ended December 31, |     
|                                           |  | Total at         |        |                          |      |  
|                                           |  | December 31,     |        |                          |      |   | 2011 and |     
|                                           |  | 2005             |        |                          | 2006 |   |          | 2007 |  |   | 2008  |  |  | 2009 |       |  | 2010 |   |       | Thereafter | 
|                                           |  |                  |        |                          |      |   |          |      |  |   |       |  |  |      |       |  |      |   |       |            | 
|                                           |  | ($ in thousands) |       
|Contractual obligations:                   |  |                  |        |                          |      |   |          |      |  |   |       |  |  |      |       |  |      |   |       |            |  |   |     |  |  |   |     | 
|Capital lease obligations                  |  | $                | 4,093  |                          |      | $ | 2,061    |      |  | $ | 1,573 |  |  | $    | 452   |  |      | $ | 7     |            |  | $ |    |  |  | $ |    | 
|Non-cancelable operating lease obligations |  |                  | 10,451 |                          |      |   | 2,678    |      |  |   | 2,537 |  |  |      | 2,419 |  |      |   | 1,959 |            |  |   | 574 |  |  |   | 284 | 
|Management change commitments*             |  |                  | 754    |                          |      |   | 435      |      |  |   | 319   |  |  |      |      |  |      |   |      |            |  |   |    |  |  |   |    | 
|Restructuring commitments**                |  |                  | 347    |                          |      |   | 347      |      |  |   |      |  |  |      |      |  |      |   |      |            |  |   |    |  |  |   |    | 
|Other long-term liabilities                |  |                  | 113    |                          |      |   | 57       |      |  |   | 50    |  |  |      | 6     |  |      |   |      |            |  |   |    |  |  |   |    | 
|                                           |  |                  |        |                          |      |   |          |      |  |   |       |  |  |      |       |  |      |   |       |            | 
|Total contractual cash obligations         |  | $                | 15,758 |                          |      | $ | 5,578    |      |  | $ | 4,479 |  |  | $    | 2,877 |  |      | $ | 1,966 |            |  | $ | 574 |  |  | $ | 284 | 
|                                           |  |                  |        |                          |      |   |          |      |  |   |       |  |  |      |       |  |      |   |       |            | 






|  |                                                                                                                                                                                                           
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | These management change commitments are a result of our recent
    management change as described in Note 15 to the
    Consolidated Financial Statements included in this Annual Report
    on Form 10-K.



|   |                                                                                                                                                                                                                                            
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|** | The restructuring charge commitments are a result of our
    recently announced rightsizing plan in North America as
    described in Note 16 to the Consolidated Financial
    Statements included in this Annual Report on
    Form 10-K.



Impact of Inflation




Recently Issued Accounting Pronouncements




54



---



##### Table of Contents








|         |                                                           
|-------- | ----------------------------------------------------------
|Item 7A. | QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK



Interest Rate and Debt Sensitivity






Currency Exchange Rate Sensitivity






55



---



##### Table of Contents








|        |                                            
|------- | -------------------------------------------
|Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


|                                                                                                                                                                      |  |      |    | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                                                                                      |  | Page |   
|                                                                                                                                                                      |  |      |   
|Greenfield Online, Inc. Consolidated Financial Statements                                                                                                             |  |      |    | 
|Report of Independent Registered Public
    Accounting Firm                                                                                                           |  |      | 57 | 
|Consolidated Balance Sheets at
    December 31, 2005 and 2004                                                                                                         |  |      | 59 | 
|Consolidated Statements of Operations for
    the years ended December 31, 2005, 2004 and 2003                                                                        |  |      | 60 | 
|Consolidated Statements of Changes in
    Convertible Preferred Stock and Stockholders Equity
    (Deficit) for the years ended December 31, 2005, 2004 and
    2003 |  |      | 61 | 
|Consolidated Statements of Cash Flows for
    the years ended December 31, 2005, 2004 and 2003                                                                        |  |      | 64 | 
|Notes to Consolidated Financial
    Statements                                                                                                                        |  |      | 65 | 

56



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








| |                                      
| | -------------------------------------
| | Consolidated financial
    statements





| |                                              
| | ---------------------------------------------
| | Internal control over
    financial reporting

Internal Control  Integrated Framework Internal Control 
Integrated Framework




57



---



##### Table of Contents















58



---



##### Table of Contents








CONSOLIDATED BALANCE SHEETS


(In thousands, except share data)


|                                             |                                                                                                                                                                                           |                                            |        |          |         |   |       |         |         |  
|-------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ------ | -------- | ------- | - | ----- | ------- | ------- | -
|                                             |                                                                                                                                                                                           | December 31,                               |       
|                                             |                                                                                                                                                                                           |                                            |       
|                                             |                                                                                                                                                                                           | 2005                                       |        |          | 2004    |  
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|ASSETS                                      
|Current assets:                              |                                                                                                                                                                                           |                                            |        |          |         |   |       |        
|                                             | Cash and cash equivalents                                                                                                                                                                 |                                            | $      | 20,623   |         |   | $     | 96,082  |        
|                                             | Investments in marketable securities                                                                                                                                                      |                                            |        |         |         |   |       | 17,400  |        
|                                             | Accounts receivable trade, net (net of allowances of $1,448 and
    $429 at December 31, 2005 and 2004, respectively)                                                                     |                                            |        | 18,197   |         |   |       | 10,537  |        
|                                             | Prepaid expenses and other current assets                                                                                                                                                 |                                            |        | 1,613    |         |   |       | 1,245   |        
|                                             | Deferred taxes, current                                                                                                                                                                   |                                            |        | 1,932    |         |   |       |        |        
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|                                             |                                                                                                                                                                                           | Total current assets                       |        |          | 42,365  |   |       |         | 125,264 |  
|Property and equipment, net                  |                                                                                                                                                                                           |                                            | 9,660  |          |         |   | 5,611 |        
|Other intangible assets, net                 |                                                                                                                                                                                           |                                            | 20,077 |          |         |   | 3,647 |        
|Goodwill                                     |                                                                                                                                                                                           |                                            | 67,442 |          |         |   |      |        
|Deferred taxes, long-term                    |                                                                                                                                                                                           |                                            | 20,068 |          |         |   |      |        
|Security deposits and other long-term assets |                                                                                                                                                                                           |                                            | 1,248  |          |         |   | 784   |        
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|                                             |                                                                                                                                                                                           | Total assets                               |        | $        | 160,860 |   |       | $       | 135,306 |  
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|                                            
|LIABILITIES AND STOCKHOLDERS EQUITY        
|Current liabilities:                         |                                                                                                                                                                                           |                                            |        |          |         |   |       |        
|                                             | Accounts payable                                                                                                                                                                          |                                            | $      | 3,264    |         |   | $     | 2,868   |        
|                                             | Accrued expenses and other current liabilities                                                                                                                                            |                                            |        | 14,576   |         |   |       | 5,802   |        
|                                             | Income taxes payable                                                                                                                                                                      |                                            |        | 3,990    |         |   |       | 90      |        
|                                             | Current portion of capital lease obligations                                                                                                                                              |                                            |        | 2,061    |         |   |       | 1,253   |        
|                                             | Deferred revenue                                                                                                                                                                          |                                            |        | 388      |         |   |       | 225     |        
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|                                             |                                                                                                                                                                                           | Total current liabilities                  |        |          | 24,279  |   |       |         | 10,238  |  
|Capital lease obligations                    |                                                                                                                                                                                           |                                            | 2,032  |          |         |   | 1,877 |        
|Other long-term liabilities                  |                                                                                                                                                                                           |                                            | 56     |          |         |   | 113   |        
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|                                             |                                                                                                                                                                                           | Total liabilities                          |        |          | 26,367  |   |       |         | 12,228  |  
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|Commitments and contingencies (Note 18)      |                                                                                                                                                                                           |                                            |        |          |         |   |       |        
|Stockholders equity:                        |                                                                                                                                                                                           |                                            |        |          |         |   |       |        
|                                             | Common stock; par value $0.0001 per share;
    100,000,000 shares authorized; 25,303,088 and
    21,001,103 shares issued and outstanding at
    December 31, 2005 and 2004, respectively |                                            |        | 3        |         |   |       | 2       |        
|                                             | Additional paid-in capital                                                                                                                                                                |                                            |        | 288,707  |         |   |       | 204,635 |        
|                                             | Accumulated deficit                                                                                                                                                                       |                                            |        | (144,630 | )       |   |       | (78,671 | )      
|                                             | Unearned stock-based compensation                                                                                                                                                         |                                            |        | (1,284   | )       |   |       | (2,757  | )      
|                                             | Accumulated other comprehensive loss                                                                                                                                                      |                                            |        | (8,172   | )       |   |       |        |        
|                                             | Treasury stock, at cost                                                                                                                                                                   |                                            |        |          |         |   |       |         |        
|                                             |                                                                                                                                                                                           | Common stock  9,643 shares                |        |          | (131    | ) |       |         | (131    | )
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|                                             |                                                                                                                                                                                           | Total stockholders equity                 |        |          | 134,493 |   |       |         | 123,078 |  
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  
|                                             |                                                                                                                                                                                           | Total liabilities and stockholders equity |        | $        | 160,860 |   |       | $       | 135,306 |  
|                                             |                                                                                                                                                                                           |                                            |        |          |         |  



59



---



##### Table of Contents








CONSOLIDATED STATEMENTS OF OPERATIONS


(In thousands, except per share data)


|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |         |        |        |        |      |        | 
|------------------------------------------------------------ | ---------------------------------------------------------------------- | -------------------------------------------------------------------------- | ---------------------------- | ------ | ---- | ------- | ------- | ------ | ------- | ------ | ------ | ------ | ---- | ------ | 
|                                                             |                                                                        | Years Ended December 31,                                                   |                             
|                                                             |                                                                        |                                                                            |                             
|                                                             |                                                                        | 2005                                                                       |                              |        | 2004 |         |         | 2003   |        
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Net revenues                                                 |                                                                        | $                                                                          | 89,179                       |        |      | $       | 44,428  |        |         | $      | 25,868 |       
|Cost of revenues                                             |                                                                        |                                                                            | 24,327                       |        |      |         | 11,081  |        |         |        | 8,884  |       
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Gross profit                                                 |                                                                        |                                                                            | 64,852                       |        |      |         | 33,347  |        |         |        | 16,984 |       
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Operating expenses:                                          |                                                                        |                                                                            |                              |        |      |         |         |        |         |        |        |       
|                                                             | Selling, general and administrative                                    |                                                                            |                              | 40,682 |      |         |         | 21,454 |         |        |        | 12,127 |     
|                                                             | Panel acquisition expenses                                             |                                                                            |                              | 3,762  |      |         |         | 2,448  |         |        |        | 1,421  |     
|                                                             | Depreciation and amortization                                          |                                                                            |                              | 6,965  |      |         |         | 1,292  |         |        |        | 1,113  |     
|                                                             | Research and development                                               |                                                                            |                              | 2,836  |      |         |         | 1,002  |         |        |        | 626    |     
|                                                             | Impairment and restructuring charges                                   |                                                                            |                              | 91,758 |      |         |         |       |         |        |        |       |     
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|                                                             |                                                                        |                                                                            | Total operating expenses     |        |      | 146,003 |         |        |         | 26,196 |        |        |      | 15,287 | 
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Operating (loss) income                                      |                                                                        |                                                                            | (81,151                      | )      |      |         | 7,151   |        |         |        | 1,697  |       
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Other (expense) income:                                      |                                                                        |                                                                            |                              |        |      |         |         |        |         |        |        |       
|                                                             | Interest (expense) income, net                                         |                                                                            |                              | (507   | )    |         |         | 123    |         |        |        | (440   | )   
|                                                             | Related party interest expense, net                                    |                                                                            |                              |       |      |         |         | (1,093 | )       |        |        | (55    | )   
|                                                             | Other (expense) income, net                                            |                                                                            |                              | (54    | )    |         |         | (52    | )       |        |        | 596    |     
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|                                                             |                                                                        |                                                                            | Total other (expense) income |        |      | (561    | )       |        |         | (1,022 | )      |        |      | 101    | 
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|(Loss) income before income taxes                            |                                                                        |                                                                            | (81,712                      | )      |      |         | 6,129   |        |         |        | 1,798  |       
|(Benefit) provision for income taxes                         |                                                                        |                                                                            | (15,753                      | )      |      |         | 411     |        |         |        | 150    |       
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Net (loss) income                                            |                                                                        |                                                                            | (65,959                      | )      |      |         | 5,718   |        |         |        | 1,648  |       
|                                                             | Less: Accretion of Series C-2 redeemable preferred stock
    dividends |                                                                            |                              |       |      |         |         |       |         |        |        | (63    | )   
|                                                             |                                                                        | Charge to common stockholders for Series B convertible
    preferred stock |                              |        |     |         |         |        | (28,054 | )      |        |        |     |       
|                                                             |                                                                        | Cumulative dividends on Series B convertible preferred stock               |                              |        |     |         |         |        | (382    | )      |        |        | (673 | )     
|                                                             |                                                                        | Income allocable to participating preferred securities                     |                              |        |     |         |         |        | (1,564  | )      |        |        | (761 | )     
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Net (loss) income available to common stockholders           |                                                                        | $                                                                          | (65,959                      | )      |      | $       | (24,282 | )      |         | $      | 151    |       
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Net (loss) income per share available to common stockholders |                                                                        |                                                                            |                              |        |      |         |         |        |         |        |        |       
|                                                             | Basic                                                                  |                                                                            | $                            | (2.72  | )    |         | $       | (2.70  | )       |        | $      | 0.07   |     
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|                                                             | Diluted                                                                |                                                                            | $                            | (2.72  | )    |         | $       | (2.70  | )       |        | $      | 0.06   |     
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|Weighted average shares outstanding:                         |                                                                        |                                                                            |                              |        |      |         |         |        |         |        |        |       
|                                                             | Basic                                                                  |                                                                            |                              | 24,217 |      |         |         | 8,985  |         |        |        | 2,054  |     
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        
|                                                             | Diluted                                                                |                                                                            |                              | 24,217 |      |         |         | 8,985  |         |        |        | 2,347  |     
|                                                             |                                                                        |                                                                            |                              |        |      |         |         |        |        



60



---



##### Table of Contents








CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED
STOCK


AND STOCKHOLDERS EQUITY (DEFICIT)


(In thousands)


|                              |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|----------------------------- | ----------------------------------------------------------------------------------------- | --------------- | ------ | ------- | --------------- | - | - | ------------ | - |  | ------ | ------- | - | ------ | - | -- | ------ |  | ------ | ------ | - | - | - | - | 
|                              |                                                                                           | Series A        |        |         | Series C-1      |   |   |              |   | 
|                              |                                                                                           | Convertible     |        |         | Convertible     |   |   |             
|                              |                                                                                           | Preferred Stock |        |         | Preferred Stock |   |   | Common Stock |  
|                              |                                                                                           |                 |        |         |                 |   |   |              |  
|                              |                                                                                           | Shares          |        |         | Amount          |   |   | Shares       |   |  | Amount |         |   | Shares |   |    | Amount | 
|                              |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        | 
|Balance at December 31, 2002  |                                                                                           |                 | 40,875 |         |                 | $ | 4 |              |   |  | 74,627 |         |   | $      | 7 |    |        |  | 2,051  |        |   | $ |  |  
|Year ended December 31, 2003: |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |  
|                              | Net income for the year                                                                   |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Issuance of stock options                                                                 |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Exercise of stock options                                                                 |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 3      |   |   |   |   | 
|                              | Accretion of discount on Series C-2 redeemable preferred
    stock liquidation preference |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Cumulative dividends on Series B convertible preferred stock                              |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Amortization of unearned stock based compensation                                         |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        | 
|Balance at December 31, 2003  |                                                                                           |                 | 40,875 |         |                 |   | 4 |              |   |  | 74,627 |         |   |        | 7 |    |        |  | 2,054  |        |   |   |  |  
|Year ended December 31, 2004: |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |  
|                              | Net income for the year                                                                   |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Repossession of shares in payment of note receivable from officer                         |                 |        | (58     | )               |   |   |              |   |  |        |         |   |        |   |    |        |  |        | (5     | ) |   |   |   | 
|                              | Conversion of preferred shares into common at the initial public
    offering             |                 |        | (40,817 | )               |   |   | (4           | ) |  |        | (74,627 | ) |        |   | (7 | )      |  |        | 10,422 |   |   |   | 2 | 
|                              | Issuance of shares pursuant to the initial public offering                                |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 4,000  |   |   |   |   | 
|                              | Issuance of shares pursuant to the follow-on public offering                              |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 4,500  |   |   |   |   | 
|                              | Exercise of stock options                                                                 |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 30     |   |   |   |   | 
|                              | Cumulative dividends on Series B convertible preferred stock                              |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Stock option forfeitures                                                                  |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Amortization of unearned stock based compensation                                         |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        | 
|Balance at December 31, 2004  |                                                                                           |                 |       |         |                 |   |  |              |   |  |       |         |   |        |  |    |        |  | 21,001 |        |   |   | 2 |  
|Year ended December 31, 2005: |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |  
|                              | Net loss for the year                                                                     |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Issuance of shares related to Employee Stock Purchase Plan                                |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 12     |   |   |   |  | 
|                              | Exercise of warrants                                                                      |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 17     |   |   |   |  | 
|                              | Shares purchased by executive officers of Rapidata.net                                    |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 32     |   |   |   |  | 
|                              | Shares purchased by executive officers of Zing Wireless                                   |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 196    |   |   |   |  | 
|                              | Shares issued in conjunction with acquisition of Ciao                                     |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 3,947  |   |   |   | 1 | 
|                              | Exercise of stock options                                                                 |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        | 98     |   |   |   |  | 
|                              | Stock option forfeitures                                                                  |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Translation adjustments, net of related income tax effects                                |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Comprehensive loss                                                                        |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Adjustment to fees related to stock issuance                                              |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Contribution to capital                                                                   |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Tax adjustment for stock based compensation                                               |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              | Amortization of unearned stock based compensation                                         |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        |  |        |        |   |   |   |   | 
|                              |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        | 
|Balance at December 31, 2005  |                                                                                           |                 |       |         |                 | $ |  |              |   |  |       |         |   | $      |  |    |        |  | 25,303 |        |   | $ | 3 |  
|                              |                                                                                           |                 |        |         |                 |   |   |              |   |  |        |         |   |        |   |    |        | 



61



---



##### Table of Contents





CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED
STOCK


AND STOCKHOLDERS EQUITY
(DEFICIT)  (Continued)


(In thousands)


|                              |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|----------------------------- | ----------------------------------------------------------------------------------------- | ---------- | ------- | -------------- | ------------------ |  | - | ------------ | - | - | ------ | --- | - | ------ | - | - |  | - | ---- | --- | -
|                              |                                                                                           |            |         | Treasury Stock |                   
|                              |                                                                                           |            |         |                |                   
|                              |                                                                                           | Additional |         |                | Series A Preferred |  |   | Common Stock |  
|                              |                                                                                           | Paid-In    |         |                |                    |  |   |              |  
|                              |                                                                                           | Capital    |         |                | Shares             |  |   | Amount       |   |   | Shares |     |   | Amount |  
|                              |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |  
|Balance at December 31, 2002  |                                                                                           | $          | 78,889  |                |                    |  |  |              |   | $ |       |     |   |        |  |   |  | $ |     |    
|Year ended December 31, 2003: |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |    
|                              | Net income for the year                                                                   |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Issuance of stock options                                                                 |            |         | 4,284          |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Exercise of stock options                                                                 |            |         | 3              |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Accretion of discount on Series C-2 redeemable preferred
    stock liquidation preference |            |         | (63            | )                  |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Cumulative dividends on Series B convertible preferred stock                              |            |         | (673           | )                  |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Amortization of unearned stock based compensation                                         |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |  
|Balance at December 31, 2003  |                                                                                           |            | 82,440  |                |                    |  |  |              |   |   |       |     |   |        |  |   |  |   |     |    
|Year ended December 31, 2004: |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |    
|                              | Net income for the year                                                                   |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Repossession of shares in payment of note receivable from officer                         |            |         | (38            | )                  |  |   | 58           |   |   |        | (56 | ) |        |   | 5 |  |   |      | (75 | )
|                              | Conversion of preferred shares into common at the initial public
    offering             |            |         | 9              |                    |  |   | (58          | ) |   |        | 56  |   |        |   | 4 |  |   |      | (56 | )
|                              | Issuance of shares pursuant to the initial public offering                                |            |         | 46,310         |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Issuance of shares pursuant to the follow-on public offering                              |            |         | 76,427         |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Exercise of stock options                                                                 |            |         | 25             |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Cumulative dividends on Series B convertible preferred stock                              |            |         | (382           | )                  |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Stock option forfeitures                                                                  |            |         | (156           | )                  |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Amortization of unearned stock based compensation                                         |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |  
|Balance at December 31, 2004  |                                                                                           |            | 204,635 |                |                    |  |  |              |   |   |       |     |   |        | 9 |   |  |   | (131 | )  
|Year ended December 31, 2005: |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |    
|                              | Net loss for the year                                                                     |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Issuance of shares related to Employee Stock Purchase Plan                                |            |         | 149            |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Exercise of warrants                                                                      |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Shares purchased by executive officers of Rapidata.net                                    |            |         | 600            |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Shares purchased by executive officers of Zing Wireless                                   |            |         | 3,600          |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Shares issued in conjunction with acquisition of Ciao                                     |            |         | 79,697         |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Exercise of stock options                                                                 |            |         | 244            |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Stock option forfeitures                                                                  |            |         | (601           | )                  |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Translation adjustments, net of related income tax effects                                |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Comprehensive loss                                                                        |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Adjustment to fees related to stock issuance                                              |            |         | 155            |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Contribution to capital                                                                   |            |         | 27             |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Tax adjustment for stock based compensation                                               |            |         | 201            |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              | Amortization of unearned stock based compensation                                         |            |         |                |                    |  |   |              |   |   |        |     |   |        |   |   |  |   |      |     |  
|                              |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |  
|Balance at December 31, 2005  |                                                                                           | $          | 288,707 |                |                    |  |  |              |   | $ |       |     |   |        | 9 |   |  | $ | (131 | )  
|                              |                                                                                           |            |         |                |                    |  |   |              |   |   |        |     |   |        |  



62



---



##### Table of Contents





CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED
STOCK


AND STOCKHOLDERS EQUITY
(DEFICIT)  (Continued)


(In thousands)


|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         |         |   |  |   |         |  
|----------------------------- | ----------------------------------------------------------------------------------------- | ---------- | ---- | --- | ------------ | - | ------ | ----------- | ----------- | ----- | ------------- | ------- | ------------- | --------- | ------ | ------ | ------------- | - | ------- | ------- | - |  | - | ------- | -
|                              |                                                                                           | Note       |      |     |              |   |        |             | Accumulated |       |               | Total   |               |           |       
|                              |                                                                                           | Receivable |      |     | Unearned     |   |        |             |             | Other |               |         | Stockholders |           |        |       
|                              |                                                                                           | From       |      |     | Stock Based  |   |        | Accumulated |             |       | Comprehensive |         |               | Equity    |        |        | Comprehensive |  
|                              |                                                                                           | Officer    |      |     | Compensation |   |        | Deficit     |             |       | Loss          |         |               | (Deficit) |        |        | Income (Loss) |  
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|Balance at December 31, 2002  |                                                                                           | $          | (133 | )   |              | $ | (1,256 | )           |             | $     | (86,037       | )       |               | $         |       |        |               | $ | (8,526  | )       |   |  |   |        
|Year ended December 31, 2003: |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         |         |   |  |   |        
|                              | Net income for the year                                                                   |            |      |     |              |   |        |             |             |       |               | 1,648   |               |           |        |       |               |   |         | 1,648   |   |  | $ | 1,648   |  
|                              | Issuance of stock options                                                                 |            |      |     |              |   |        | (4,284      | )           |       |               |         |               |           |        |       |               |   |         |        |   |  |   |        |  
|                              | Exercise of stock options                                                                 |            |      | 2   |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         | 5       |   |  |   |        |  
|                              | Accretion of discount on Series C-2 redeemable preferred
    stock liquidation preference |            |      |     |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         | (63     | ) |  |   |        |  
|                              | Cumulative dividends on Series B convertible preferred stock                              |            |      |     |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         | (673    | ) |  |   |        |  
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|                              | Comprehensive income                                                                      |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         |         |   |  | $ | 1,648   |  
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|                              | Amortization of unearned stock based compensation                                         |            |      |     |              |   |        | 1,282       |             |       |               |         |               |           |        |        |               |   |         | 1,282   |   |  |   |         |  
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|Balance at December 31, 2003  |                                                                                           |            | (131 | )   |              |   | (4,258 | )           |             |       | (84,389       | )       |               |           |       |        |               |   | (6,327  | )       |   |  |   |        
|Year ended December 31, 2004: |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         |         |   |  |   |        
|                              | Net income for the year                                                                   |            |      |     |              |   |        |             |             |       |               | 5,718   |               |           |        |       |               |   |         | 5,718   |   |  | $ | 5,718   |  
|                              | Repossession of shares in payment of note receivable from officer                         |            |      | 131 |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         | (38     | ) |  |   |        |  
|                              | Conversion of preferred shares into common at the initial public
    offering             |            |      |     |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         |        |   |  |   |        |  
|                              | Issuance of shares pursuant to the initial public offering                                |            |      |     |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         | 46,310  |   |  |   |        |  
|                              | Issuance of shares pursuant to the follow-on public offering                              |            |      |     |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         | 76,427  |   |  |   |        |  
|                              | Exercise of stock options                                                                 |            |      |     |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         | 25      |   |  |   |        |  
|                              | Cumulative dividends on Series B convertible preferred stock                              |            |      |     |              |   |        |             |             |       |               |         |               |           |        |       |               |   |         | (382    | ) |  |   |        |  
|                              | Stock option forfeitures                                                                  |            |      |     |              |   |        | 156         |             |       |               |         |               |           |        |       |               |   |         |        |   |  |   |        |  
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|                              | Comprehensive income                                                                      |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         |         |   |  | $ | 5,718   |  
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|                              | Amortization of unearned stock based compensation                                         |            |      |     |              |   |        | 1,345       |             |       |               |         |               |           |        |        |               |   |         | 1,345   |   |  |   |         |  
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|Balance at December 31, 2004  |                                                                                           |            |     |     |              |   | (2,757 | )           |             |       | (78,671       | )       |               |           |       |        |               |   | 123,078 |         |   |  |   |        
|Year ended December 31, 2005: |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         |         |   |  |   |        
|                              | Net loss for the year                                                                     |            |      |     |              |   |        |             |             |       |               | (65,959 | )             |           |        |        |               |   |         | (65,959 | ) |  | $ | (65,959 | )
|                              | Issuance of shares related to Employee Stock Purchase Plan                                |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         | 149     |   |  |   |        |  
|                              | Exercise of warrants                                                                      |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         |        |   |  |   |        |  
|                              | Shares purchased by executive officers of Rapidata.net                                    |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         | 600     |   |  |   |        |  
|                              | Shares purchased by executive officers of Zing Wireless                                   |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         | 3,600   |   |  |   |        |  
|                              | Shares issued in conjunction with acquisition of Ciao                                     |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         | 79,698  |   |  |   |        |  
|                              | Exercise of stock options                                                                 |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         | 244     |   |  |   |        |  
|                              | Stock option forfeitures                                                                  |            |      |     |              |   |        | 601         |             |       |               |         |               |           |        |        |               |   |         |         |   |  |   |        |  
|                              | Translation adjustments, net of related income tax effects                                |            |      |     |              |   |        |             |             |       |               |         |               |           |        | (8,172 | )             |   |         | (8,172  | ) |  |   | (8,172  | )
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|                              | Comprehensive loss                                                                        |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         |         |   |  | $ | (74,131 | )
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|                              | Adjustment to fees related to stock issuance                                              |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         | 155     |   |  |   |         |  
|                              | Contribution to capital                                                                   |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         | 27      |   |  |   |         |  
|                              | Tax adjustment for stock based compensation                                               |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |   |         | 201     |   |  |   |         |  
|                              | Amortization of unearned stock based compensation                                         |            |      |     |              |   |        | 872         |             |       |               |         |               |           |        |        |               |   |         | 872     |   |  |   |         |  
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  
|Balance at December 31, 2005  |                                                                                           | $          |     |     |              | $ | (1,284 | )           |             | $     | (144,630      | )       |               | $         | (8,172 | )      |               | $ | 134,493 |         |   |  |   |        
|                              |                                                                                           |            |      |     |              |   |        |             |             |       |               |         |               |           |        |        |               |  



63



---



##### Table of Contents








CONSOLIDATED STATEMENTS OF CASH FLOWS


(In thousands)


|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |       |        |        |        |       |        |  
|---------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------- | -------------------------------------------------- | ---------------------------------------------- | -------- | ------- | ----- | ------- | ------- | ----- | ------ | ------ | ------ | ----- | ------ | -
|                                                                                               |                                                                                              | Years Ended December 31,                           |                                               
|                                                                                               |                                                                                              |                                                    |                                               
|                                                                                               |                                                                                              | 2005                                               |                                                |          | 2004    |       |         | 2003    |      
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Cash flows from operating activities:                                                          |                                                                                              |                                                    |                                                |          |         |       |         |         |       |        |        |       
|                                                                                               | Net (loss) income                                                                            |                                                    | $                                              | (65,959  | )       |       | $       | 5,718   |       |        | $      | 1,648  |      
|                                                                                               | Adjustments to reconcile net (loss) income to net cash provided
    by operating activities: |                                                    |                                                |          |         |       |         |         |       |        |        |        |      
|                                                                                               |                                                                                              | Deferred income tax benefit                        |                                                |          | (18,392 | )     |         |         |      |        |        |        |      |       
|                                                                                               |                                                                                              | Depreciation and amortization                      |                                                |          | 9,347   |       |         |         | 1,845 |        |        |        | 1,398 |       
|                                                                                               |                                                                                              | Amortization of contract asset                     |                                                |          |        |       |         |         | 17    |        |        |        | 200   |       
|                                                                                               |                                                                                              | Stock based compensation                           |                                                |          | 872     |       |         |         | 1,345 |        |        |        | 1,282 |       
|                                                                                               |                                                                                              | Non-cash interest expense                          |                                                |          |        |       |         |         | 1,093 |        |        |        | 55    |       
|                                                                                               |                                                                                              | Management change costs                            |                                                |          | 1,037   |       |         |         |      |        |        |        |      |       
|                                                                                               |                                                                                              | Restructuring charges                              |                                                |          | 379     |       |         |         |      |        |        |        |      |       
|                                                                                               |                                                                                              | Impairment of goodwill and other intangible assets |                                                |          | 91,379  |       |         |         |      |        |        |        |      |       
|                                                                                               |                                                                                              | (Gain) loss on disposal of property and equipment  |                                                |          | 55      |       |         |         | (2    | )      |        |        |      |       
|                                                                                               |                                                                                              | Gain on sale of Custom Research Business           |                                                |          |        |       |         |         |      |        |        |        | (600  | )     
|                                                                                               |                                                                                              | Provision for doubtful accounts                    |                                                |          | 575     |       |         |         | 125   |        |        |        | (6    | )     
|                                                                                               |                                                                                              | Changes in assets and liabilities, net:            |                                                |          |         |       |         |         |       |        |        |        |       |       
|                                                                                               |                                                                                              |                                                    | Accounts receivable                            |          |         | (350  | )       |         |       | (6,425 | )      |        |       | (2,139 | )
|                                                                                               |                                                                                              |                                                    | Deferred project costs                         |          |         | (286  | )       |         |       | (23    | )      |        |       | (10    | )
|                                                                                               |                                                                                              |                                                    | Other current assets                           |          |         | 443   |         |         |       | (605   | )      |        |       | (2     | )
|                                                                                               |                                                                                              |                                                    | Security deposits                              |          |         | (242  | )       |         |       | (136   | )      |        |       | 66     |  
|                                                                                               |                                                                                              |                                                    | Other assets                                   |          |         | (35   | )       |         |       | (60    | )      |        |       |       |  
|                                                                                               |                                                                                              |                                                    | Accounts payable                               |          |         | (805  | )       |         |       | 1,303  |        |        |       | 576    |  
|                                                                                               |                                                                                              |                                                    | Accrued expenses and other current liabilities |          |         | 3,919 |         |         |       | 1,191  |        |        |       | 1,589  |  
|                                                                                               |                                                                                              |                                                    | Payments of management change accrual          |          |         | (124  | )       |         |       |       |        |        |       |       |  
|                                                                                               |                                                                                              |                                                    | Payments of restructuring charges              |          |         | (32   | )       |         |       |       |        |        |       |       |  
|                                                                                               |                                                                                              |                                                    | Income taxes payable                           |          |         | 1,755 |         |         |       | 56     |        |        |       | 34     |  
|                                                                                               |                                                                                              |                                                    | Deferred project revenues                      |          |         | 125   |         |         |       | (169   | )      |        |       | (40    | )
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Net cash provided by operating activities                                                      |                                                                                              |                                                    | 23,661                                         |          |         |       | 5,273   |         |       |        | 4,051  |       
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Cash flows from investing activities:                                                          |                                                                                              |                                                    |                                                |          |         |       |         |         |       |        |        |       
|                                                                                               | Purchases of marketable securities                                                           |                                                    |                                                | (8,249   | )       |       |         | (31,900 | )     |        |        |       |      
|                                                                                               | Sales of marketable securities                                                               |                                                    |                                                | 25,649   |         |       |         | 14,500  |       |        |        |       |      
|                                                                                               | Proceeds from sale of Custom Research Business                                               |                                                    |                                                |         |         |       |         |        |       |        |        | 600    |      
|                                                                                               | Proceeds from sale of property and equipment                                                 |                                                    |                                                | 11       |         |       |         | 32      |       |        |        |       |      
|                                                                                               | Purchases of businesses, net of cash acquired                                                |                                                    |                                                | (113,645 | )       |       |         | (3,189  | )     |        |        |       |      
|                                                                                               | Additions to property and equipment and intangibles                                          |                                                    |                                                | (5,474   | )       |       |         | (2,404  | )     |        |        | (305   | )    
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Net cash (used in) provided by investing activities                                            |                                                                                              |                                                    | (101,708                                       | )        |         |       | (22,961 | )       |       |        | 295    |       
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Cash flows from financing activities:                                                          |                                                                                              |                                                    |                                                |          |         |       |         |         |       |        |        |       
|                                                                                               | Proceeds from borrowings under credit facility                                               |                                                    |                                                | 18,848   |         |       |         | 1,000   |       |        |        |       |      
|                                                                                               | Repayments under credit facility                                                             |                                                    |                                                | (18,848  | )       |       |         | (1,000  | )     |        |        | (1,216 | )    
|                                                                                               | (Decrease) increase in other long-term liabilities                                           |                                                    |                                                | (65      | )       |       |         | 26      |       |        |        | (282   | )    
|                                                                                               | Decrease in book overdraft.                                                                  |                                                    |                                                |         |         |       |         |        |       |        |        | (31    | )    
|                                                                                               | Proceeds of options exercised                                                                |                                                    |                                                | 244      |         |       |         | 24      |       |        |        | 2      |      
|                                                                                               | Proceeds of employee stock purchase plan                                                     |                                                    |                                                | 151      |         |       |         | 65      |       |        |        |       |      
|                                                                                               | Contribution to capital                                                                      |                                                    |                                                | 27       |         |       |         |        |       |        |        |       |      
|                                                                                               | Proceeds from subscriptions receivable from management                                       |                                                    |                                                |         |         |       |         |        |       |        |        | 2      |      
|                                                                                               | Net proceeds from issuance of common stock in connection with
    business acquisitions      |                                                    |                                                | 4,200    |         |       |         |        |       |        |        |       |      
|                                                                                               | Net proceeds from initial public offering                                                    |                                                    |                                                |         |         |       |         | 46,310  |       |        |        |       |      
|                                                                                               | Net proceeds from follow-on public offering                                                  |                                                    |                                                |         |         |       |         | 76,427  |       |        |        |       |      
|                                                                                               | Payment of Series C-2 Preferred Stock liquidation preference                                 |                                                    |                                                |         |         |       |         | (2,052  | )     |        |        |       |      
|                                                                                               | Payment of Series B dividend liquidation preference                                          |                                                    |                                                |         |         |       |         | (9,496  | )     |        |        |       |      
|                                                                                               | Principal payments under capital lease obligations                                           |                                                    |                                                | (1,622   | )       |       |         | (1,257  | )     |        |        | (964   | )    
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Net cash provided by (used in) financing activities                                            |                                                                                              |                                                    | 2,935                                          |          |         |       | 110,047 |         |       |        | (2,489 | )     
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Effect of exchange rate changes                                                                |                                                                                              |                                                    | (347                                           | )        |         |       | 2       |         |       |        |       |       
|Net (decrease) increase in cash and cash equivalents                                           |                                                                                              |                                                    | (75,459                                        | )        |         |       | 92,361  |         |       |        | 1,857  |       
|Cash and cash equivalents at beginning of the period                                           |                                                                                              |                                                    | 96,082                                         |          |         |       | 3,721   |         |       |        | 1,864  |       
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Cash and cash equivalents at end of the period                                                 |                                                                                              | $                                                  | 20,623                                         |          |         | $     | 96,082  |         |       | $      | 3,721  |       
|                                                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |      
|Supplemental disclosures of cash flow information:                                             |                                                                                              |                                                    |                                                |          |         |       |         |         |       |        |        |       
|Cash paid during the period for:                                                               |                                                                                              |                                                    |                                                |          |         |       |         |         |       |        |        |       
|                                                                                               | Interest                                                                                     |                                                    | $                                              | 1,574    |         |       | $       | 288     |       |        | $      | 412    |      
|                                                                                               | Income taxes                                                                                 |                                                    |                                                | 866      |         |       |         | 356     |       |        |        | 116    |      
|Supplemental Schedule of Non-cash Investing and Financing
    Activities:                      |                                                                                              |                                                    |                                                |          |         |       |         |         |       |        |        |       
|Purchase of equipment and internal use software financed through
    capital lease obligations |                                                                                              | $                                                  | 2,385                                          |          |         | $     | 2,808   |         |       | $      | 545    |       
|Repossession of shares in payment of note receivable from officer                              |                                                                                              |                                                    |                                               |          |         |       | 169     |         |       |        |       |       
|Issuance of Common Stock for business acquisition                                              |                                                                                              |                                                    | 79,697                                         |          |         |       |        |         |       |        |       |       
|Cumulative dividends on Series B convertible preferred stock                                   |                                                                                              |                                                    |                                               |          |         |       | 382     |         |       |        | 673    |       
|Accretion of Series C-2 redeemable preferred stock dividends                                   |                                                                                              |                                                    |                                               |          |         |       |        |         |       |        | 63     |       



64



---



##### Table of Contents








NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1  Organization of Business, Nature of
Business and Basis of Presentation:






| |                                           
| | ------------------------------------------
| | Organization and Basis of
    Presentation











| |                  
| | -----------------
| | Reclassifications





| |                       
| | ----------------------
| | Nature of
    Business





65



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |          
| | ---------
| | Expansion





| |                                                    
| | ---------------------------------------------------
| | Reverse Stock Split and
    Initial Public Offering

one-for-14 C-2 C-2 C-1 C-1 one-for-14




| |                              
| | -----------------------------
| | Follow-on Public
    Offering





| |                                    
| | -----------------------------------
| | Liquidity and Capital
    Resources



66



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Note 2  Summary of Significant Accounting
Policies:




Revenue Recognition.


e-commerce




Cost of Revenues.


Cash and Cash Equivalents.


Investments in Marketable Securities.


67



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                            |  |              |   |              |  |   |        | 
|--------------------------- |  | ------------ | - | ------------ |  | - | ------ | 
|                            |  | Fair Value   |   | Fair Value   | 
|                            |  | December 31, |   | December 31, | 
|Investment Type             |  | 2005         |   | 2004         | 
|                            |  |              |   |              | 
|U.S. State debt obligations |  | $            |  |              |  | $ | 14,500 | 
|Other debt securities       |  |              |  |              |  |   | 2,900  | 
|                            |  |              |   |              |  |  
|Fair value                  |  | $            |  |              |  | $ | 17,400 | 
|                            |  |              |   |              |  |  

Translation of Foreign Currencies.


Concentration of Credit Risk.


68



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Accounts Receivable Allowances.


Property and Equipment.


Goodwill and Other Intangible Assets.




Long-lived Assets.


69



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Restructuring.


Software Costs. 98-1, Accounting for the Costs of Computer Software Developed
or Obtained for Internal Use 98-1)




Income Taxes.


Fair Value of Financial Instruments.


70



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Panelist Incentives.


Panel Acquisition Expenses.


Research and Development.


Stock-Based Compensation. Accounting for Stock Issued to Employees






71



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








72



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                                                  |                                                                        |                                                                            |         |       |      |   |         |       |         |   |        |      |      |  
|------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------- | -------------------------------------------------------------------------- | ------- | ----- | ---- | - | ------- | ----- | ------- | - | ------ | ---- | ---- | -
|                                                                                                                                                  |                                                                        | Years Ended December 31,                                                   |        
|                                                                                                                                                  |                                                                        |                                                                            |        
|                                                                                                                                                  |                                                                        | 2005                                                                       |         |       | 2004 |   |         | 2003  |        
|                                                                                                                                                  |                                                                        |                                                                            |         |       |      |   |         |       |        
|Net (loss) income as reported                                                                                                                     |                                                                        | $                                                                          | (65,959 | )     |      | $ | 5,718   |       |         | $ | 1,648  |     
|Add: Stock-based employee compensation expense included in net
    (loss) income as recorded                                                      |                                                                        |                                                                            | 872     |       |      |   | 1,345   |       |         |   | 1,282  |     
|Deduct: Total stock-based employee compensation expense
    determined under the fair value method for all awards, net of
    related tax effects |                                                                        |                                                                            | (14,039 | )     |      |   | (3,415  | )     |         |   | (1,421 | )   
|                                                                                                                                                  |                                                                        |                                                                            |         |       |      |   |         |       |        
|Pro forma net (loss) income                                                                                                                       |                                                                        |                                                                            | (79,126 | )     |      |   | 3,648   |       |         |   | 1,509  |     
|                                                                                                                                                  | Less: Accretion of Series C-2 redeemable preferred stock
    dividends |                                                                            |         |      |      |   |         |      |         |   |        | (63  | )   
|                                                                                                                                                  |                                                                        | Charge to common stockholders for Series B convertible
    preferred stock |         |       |     |   |         |       | (28,054 | ) |        |      |     |  
|                                                                                                                                                  |                                                                        | Cumulative dividends on Series B convertible preferred stock               |         |       |     |   |         |       | (382    | ) |        |      | (673 | )
|                                                                                                                                                  |                                                                        | Income allocable to participating preferred securities                     |         |       |     |   |         |       | (1,129  | ) |        |      | (646 | )
|                                                                                                                                                  |                                                                        |                                                                            |         |       |      |   |         |       |        
|Pro forma net (loss) income available to common stockholders                                                                                      |                                                                        | $                                                                          | (79,126 | )     |      | $ | (25,917 | )     |         | $ | 127    |     
|                                                                                                                                                  |                                                                        |                                                                            |         |       |      |   |         |       |        
|Net (loss) income per share as reported:                                                                                                          |                                                                        |                                                                            |         |       |      |   |         |       |         |   |        |     
|                                                                                                                                                  | Basic                                                                  |                                                                            | $       | (2.72 | )    |   | $       | (2.70 | )       |   | $      | 0.07 |     
|                                                                                                                                                  | Diluted                                                                |                                                                            | $       | (2.72 | )    |   | $       | (2.70 | )       |   | $      | 0.06 |     
|Pro forma (loss) income per share:                                                                                                                |                                                                        |                                                                            |         |       |      |   |         |       |         |   |        |     
|                                                                                                                                                  | Basic                                                                  |                                                                            | $       | (3.27 | )    |   | $       | (2.88 | )       |   | $      | 0.06 |     
|                                                                                                                                                  | Diluted                                                                |                                                                            | $       | (3.27 | )    |   | $       | (2.88 | )       |   | $      | 0.05 |     



|                                       |  |                          |      |   |      |  |      |      |  |  |      |  
|-------------------------------------- |  | ------------------------ | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                       |  | Years Ended December 31, |     
|                                       |  |                          |     
|                                       |  | 2005                     |      |   | 2004 |  |      | 2003 | 
|                                       |  |                          |      |   |      |  |      |      | 
|Risk-free interest rate                |  |                          | 3.98 | % |      |  | 3.29 | %    |  |  | 2.35 | %
|Weighted average expected life (years) |  |                          | 4    |   |      |  | 5    |      |  |  | 5    |  
|Volatility factor                      |  |                          | 56   | % |      |  | 60   | %    |  |  | 72   | %
|Forfeiture rates                       |  |                          |     |   |      |  |     |      |  |  |     |  
|Expected dividend yield                |  |                          |     |   |      |  |     |      |  |  |     |  



73



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




96-18, Accounting for Equity Instruments That Are Issued to
Other Than Employees for Acquiring, or in Conjunction with
Selling, Goods and Services


Net (Loss) Income per Share. in-the in-the


|                                                                               |  |                          |        |  |      |  |       |      |  |  |       | 
|------------------------------------------------------------------------------ |  | ------------------------ | ------ |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                                                               |  | Years Ended December 31, |       
|                                                                               |  |                          |       
|                                                                               |  | 2005                     |        |  | 2004 |  |       | 2003 | 
|                                                                               |  |                          |        |  |      |  |       |      | 
|Weighted average number of common and potential common shares
    outstanding: |  |                          |        |  |      |  |       |      |  |  |       | 
|Basic number of common shares outstanding                                      |  |                          | 24,217 |  |      |  | 8,985 |      |  |  | 2,054 | 
|Dilutive effect of stock option grants                                         |  |                          |       |  |      |  |      |      |  |  | 289   | 
|Dilutive effect of warrants                                                    |  |                          |       |  |      |  |      |      |  |  | 4     | 
|                                                                               |  |                          |        |  |      |  |       |      | 
|Diluted number of common and potential common shares outstanding               |  |                          | 24,217 |  |      |  | 8,985 |      |  |  | 2,347 | 
|                                                                               |  |                          |        |  |      |  |       |      | 

Use of Estimates.


74



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                         
| | ----------------------------------------
| | Recently Issued Accounting
    Standards

Share Based Payments.






Accounting Changes and Error Corrections.


75



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Note 3  Sale of Custom Research Business:




U.S.-based


00-21 Revenue Arrangements With Multiple
Deliverables


76



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


U.S.-based


Note 4  Prepaid Expenses and Other Current
Assets:




|                                          |  |              |       |  |      |   |       | 
|----------------------------------------- |  | ------------ | ----- |  | ---- | - | ----- | 
|                                          |  | December 31, |      
|                                          |  |              |      
|                                          |  | 2005         |       |  | 2004 |  
|                                          |  |              |       |  |      |  
|Prepaid maintenance and license contracts |  | $            | 316   |  |      | $ | 192   | 
|Prepaid expenses                          |  |              | 254   |  |      |   | 157   | 
|Prepaid insurance                         |  |              | 488   |  |      |   | 367   | 
|Deferred project costs                    |  |              | 378   |  |      |   | 92    | 
|Prepaid taxes                             |  |              | 136   |  |      |   | 7     | 
|Interest receivable                       |  |              |      |  |      |   | 217   | 
|Other                                     |  |              | 41    |  |      |   | 213   | 
|                                          |  |              |       |  |      |  
|                                          |  | $            | 1,613 |  |      | $ | 1,245 | 
|                                          |  |              |       |  |      |  

Note 5  Property and Equipment, net:




|                                       |  |            |      |  |              |   |         |      |  |   |        |  
|-------------------------------------- |  | ---------- | ---- |  | ------------ | - | ------- | ---- |  | - | ------ | -
|                                       |  | Estimated  |      |  | December 31, |  
|                                       |  | Useful     |      |  |              |  
|                                       |  | Life-Years |      |  | 2005         |   |         | 2004 | 
|                                       |  |            |      |  |              |   |         |      | 
|Computer and data processing equipment |  |            | 2-4  |  |              | $ | 14,730  |      |  | $ | 8,498  |  
|Leasehold improvements                 |  |            | 2-5* |  |              |   | 1,838   |      |  |   | 1,505  |  
|Furniture and fixtures                 |  |            | 7-8  |  |              |   | 2,382   |      |  |   | 1,732  |  
|Telephone system                       |  |            | 4-5  |  |              |   | 1,121   |      |  |   | 606    |  
|Automobile(s)                          |  |            | 4    |  |              |   | 99      |      |  |   | 88     |  
|                                       |  |            |      |  |              |   |         |      | 
|                                       |  |            |      |  |              |   | 20,170  |      |  |   | 12,429 |  
|Less: Accumulated depreciation         |  |            |      |  |              |   | (10,510 | )    |  |   | (6,818 | )
|                                       |  |            |      |  |              |   |         |      | 
|Property and equipment, net            |  |            |      |  |              | $ | 9,660   |      |  | $ | 5,611  |  
|                                       |  |            |      |  |              |   |         |      | 






|  |                                                                                   
|- | ----------------------------------------------------------------------------------
|* | Lesser of the estimated life of the asset or the life of the
    underlying lease.



77



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                       |  |              |        |   |      |   |        |  
|-------------------------------------- |  | ------------ | ------ | - | ---- | - | ------ | -
|                                       |  | December 31, |       
|                                       |  |              |       
|                                       |  | 2005         |        |   | 2004 |  
|                                       |  |              |        |   |      |  
|Computer and data processing equipment |  | $            | 4,717  |   |      | $ | 5,066  |  
|Leasehold improvements                 |  |              | 28     |   |      |   | 30     |  
|Furniture and fixtures                 |  |              | 1,374  |   |      |   | 1,232  |  
|Telephone system                       |  |              | 975    |   |      |   | 594    |  
|Automobile                             |  |              | 58     |   |      |   | 58     |  
|                                       |  |              |        |   |      |  
|                                       |  |              | 7,152  |   |      |   | 6,980  |  
|Accumulated depreciation               |  |              | (3,112 | ) |      |   | (3,639 | )
|                                       |  |              |        |   |      |  
|Assets under capital leases, net       |  | $            | 4,040  |   |      | $ | 3,341  |  
|                                       |  |              |        |   |      |  

Note 6  Goodwill and Other Intangible
Assets:




| |         
| | --------
| | Goodwill

non-cash,


78



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                        |  |               |       |  |        |   |        |      |  |   |         |   |  |   |         |  
|--------------------------------------- |  | ------------- | ----- |  | ------ | - | ------ | ---- |  | - | ------- | - |  | - | ------- | -
|                                        |  | North America |       |  | Europe |   |        |     
|                                        |  |               |       |  |        |   |        |     
|Goodwill                                |  | Rapidata      |       |  | goZing |   |        | Ciao |  |   | Total   |  
|                                        |  |               |       |  |        |   |        |      |  |   |         |  
|Balance as of December 31, 2004         |  | $             |      |  |        | $ |       |      |  | $ |        |   |  | $ |        |  
|Goodwill associated with acquisitions*  |  |               | 5,050 |  |        |   | 25,749 |      |  |   | 135,811 |   |  |   | 166,610 |  
|Goodwill impairment                     |  |               |       |  |        |   |        |      |  |   | (89,846 | ) |  |   | (89,846 | )
|Foreign currency translation adjustment |  |               |       |  |        |   |        |      |  |   | (9,322  | ) |  |   | (9,322  | )
|                                        |  |               |       |  |        |   |        |      |  |   |         |  
|Balance as of December 31, 2005         |  | $             | 5,050 |  |        | $ | 25,749 |      |  | $ | 36,643  |   |  | $ | 67,442  |  
|                                        |  |               |       |  |        |   |        |      |  |   |         |  






|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Goodwill associated with the Rapidata, goZing and Ciao
    acquisitions has been adjusted by $85,000, $430,000 and
    $814,000, respectively, since their respective acquisition dates
    through December 31, 2005 as a result of certain
    post-closing adjustments of the net assets acquired. The
    goodwill associated with Rapidata and goZing are included in our
    North American operating segment, while the Ciao goodwill is
    included in our European operating segment (see Note 7).



| |                            
| | ---------------------------
| | Other Intangible
    Assets



|                               |  |            |        |                         |          |   |                         |              |  |       |        |  |  |          |        |  |              |   |       |        |  |   |       |  |  |   |       | 
|------------------------------ |  | ---------- | ------ | ----------------------- | -------- | - | ----------------------- | ------------ |  | ----- | ------ |  |  | -------- | ------ |  | ------------ | - | ----- | ------ |  | - | ----- |  |  | - | ----- | 
|                               |  |            |        | As of December 31, 2005 |          |   | As of December 31, 2004 |             
|                               |  |            |        |                         |          |   |                         |             
|                               |  | Estimated  |        |                         | Gross    |   |                         |              |  | Gross |        |  | 
|                               |  | Useful     |        |                         | Carrying |   |                         | Accumulated  |  |       | Net    |  |  | Carrying |        |  | Accumulated  |   |       | Net    | 
|                               |  | Life-Years |        |                         | Cost     |   |                         | Amortization |  |       | Amount |  |  | Cost     |        |  | Amortization |   |       | Amount | 
|                               |  |            |        |                         |          |   |                         |              |  |       |        |  |  |          |        |  |              |   |       |        | 
|Internal use software          |  |            | 2-3    |                         |          | $ | 3,321                   |              |  | $     | 1,777  |  |  | $        | 1,544  |  |              | $ | 2,317 |        |  | $ | 1,704 |  |  | $ | 613   | 
|Other software acquired        |  |            | 0.42   |                         |          |   | 159                     |              |  |       | 159    |  |  |          |       |  |              |   |      |        |  |   |      |  |  |   |      | 
|Panel members*                 |  |            | 3-4    |                         |          |   | 6,674                   |              |  |       | 1,558  |  |  |          | 5,116  |  |              |   | 2,849 |        |  |   | 148   |  |  |   | 2,701 | 
|Backlog                        |  |            | 0.25   |                         |          |   | 419                     |              |  |       | 419    |  |  |          |       |  |              |   |      |        |  |   |      |  |  |   |      | 
|Affiliate network              |  |            | 3      |                         |          |   | 347                     |              |  |       | 87     |  |  |          | 260    |  |              |   |      |        |  |   |      |  |  |   |      | 
|Customer relationships         |  |            | 5      |                         |          |   | 7,015                   |              |  |       | 1,142  |  |  |          | 5,873  |  |              |   |      |        |  |   |      |  |  |   |      | 
|Non-competition agreements     |  |            | 2.75-3 |                         |          |   | 2,371                   |              |  |       | 712    |  |  |          | 1,659  |  |              |   |      |        |  |   |      |  |  |   |      | 
|Domain names and service marks |  |            | 5-10   |                         |          |   | 6,545                   |              |  |       | 920    |  |  |          | 5,625  |  |              |   | 340   |        |  |   | 7     |  |  |   | 333   | 
|                               |  |            |        |                         |          |   |                         |              |  |       |        |  |  |          |        |  |              |   |       |        | 
|Other intangible assets, net   |  |            |        |                         |          | $ | 26,851                  |              |  | $     | 6,774  |  |  | $        | 20,077 |  |              | $ | 5,506 |        |  | $ | 1,859 |  |  | $ | 3,647 | 
|                               |  |            |        |                         |          |   |                         |              |  |       |        |  |  |          |        |  |              |   |       |        | 






|  |                                                                                                                                                                                                                                                                                                                                           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | During the fourth quarter of 2005, we reduced the estimated
    useful lives of our acquired panelists from
    4-8years to
    3-4years. We
    reduced the useful lives based on the accumulation of additional
    experience with regard to the duration that, on average, a panel
    member will continue to participate in surveys.

on-going


79



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






non-competition






|     |  |        |       | 
|---- |  | ------ | ----- | 
|     |  | Amount |      
|     |  |        |      
|2006 |  | $      | 6,136 | 
|2007 |  | $      | 5,678 | 
|2008 |  | $      | 4,075 | 
|2009 |  | $      | 3,230 | 
|2010 |  | $      | 722   | 

80



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |  |              |     |   |      |   |     |  
|-------------------------------- |  | ------------ | --- | - | ---- | - | --- | -
|                                 |  | December 31, |    
|                                 |  |              |    
|                                 |  | 2005         |     |   | 2004 |  
|                                 |  |              |     |   |      |  
|Internal use software            |  | $            | 69  |   |      | $ | 62  |  
|Accumulated amortization         |  |              | (39 | ) |      |   | (16 | )
|                                 |  |              |     |   |      |  
|Assets under capital leases, net |  | $            | 30  |   |      | $ | 46  |  
|                                 |  |              |     |   |      |  

Note 7  Acquisition of Business:




| |                               
| | ------------------------------
| | OpinionSurveys
    Acquisition





| |                             
| | ----------------------------
| | Rapidata.net
    Acquisition

non-competition 10-K


81



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                              
| | -----------------------------
| | Zing Wireless
    Acquisition

non-competition




| |                     
| | --------------------
| | Ciao
    Acquisition

 follow-on   


82



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                          |  |               |        |   |          |   |         |  
|------------------------- |  | ------------- | ------ | - | -------- | - | ------- | -
|                          |  | North America |        |   | Europe   |  
|                          |  |               |        |   |          |  
|                          |  | goZing        |        |   | Ciao     |  
|                          |  | February 8,   |        |   | April 6, |  
|                          |  | 2005          |        |   | 2005     |  
|                          |  |               |        |   |          |  
|Cash                      |  | $             | 833    |   |          | $ | 1,775   |  
|Trade receivables         |  |               | 2,330  |   |          |   | 5,602   |  
|Other current assets      |  |               | 91     |   |          |   | 647     |  
|Property and equipment    |  |               | 276    |   |          |   | 1,561   |  
|Other intangible assets*  |  |               | 4,549  |   |          |   | 18,194  |  
|Deferred tax asset        |  |               |       |   |          |   | 6,060   |  
|Goodwill**                |  |               | 25,749 |   |          |   | 135,811 |  
|                          |  |               |        |   |          |  
|Total assets acquired     |  |               | 33,828 |   |          |   | 169,650 |  
|Accounts payable          |  |               | (712   | ) |          |   | (535    | )
|Accrued expenses          |  |               | (1,024 | ) |          |   | (1,844  | )
|Current taxes payable     |  |               |       |   |          |   | (2,032  | )
|Other current liabilities |  |               | (31    | ) |          |   | (1,041  | )
|Deferred tax liability    |  |               |       |   |          |   | (6,103  | )
|Long term liabilities     |  |               | (78    | ) |          |   |        |  
|                          |  |               |        |   |          |  
|Net assets acquired       |  | $             | 31,983 |   |          | $ | 158,095 |  
|                          |  |               |        |   |          |  






| |   |                                                                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Acquired software previously reported as an intangible asset
    associated with the Ciao acquisition has been reclassified and
    included in Property and equipment to conform to our
    December 31, 2005 Consolidated Financial Statements
    presentation.



|   |                                                    
|-- | ---------------------------------------------------
|** | Goodwill is not deductible for income tax purposes.

83



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |  |            |      |  |             |   |       |            |  |  |          |  |  |   |        | 
|------------------------------ |  | ---------- | ---- |  | ----------- | - | ----- | ---------- |  |  | -------- |  |  | - | ------ | 
|                               |  | Estimated  |      |  | goZing      |   |       | Estimated  |  |  | Ciao     | 
|                               |  | Useful     |      |  | February 8, |   |       | Useful     |  |  | April 6, | 
|                               |  | Life-Years |      |  | 2005        |   |       | Life-Years |  |  | 2005     | 
|                               |  |            |      |  |             |   |       |            |  |  |          | 
|Acquired software              |  |            | 0.42 |  |             | $ | 159   |            |  |  |         |  |  | $ |       | 
|Panel members                  |  |            | 5.0  |  |             |   | 2,369 |            |  |  | 4.0      |  |  |   | 1,565  | 
|Domain names and service marks |  |            | 10.0 |  |             |   | 116   |            |  |  | 5.0      |  |  |   | 6,542  | 
|Customer relationships         |  |            | 5.0  |  |             |   | 975   |            |  |  | 5.0      |  |  |   | 7,483  | 
|Non-competition agreements     |  |            | 3.0  |  |             |   | 459   |            |  |  | 2.75     |  |  |   | 2,340  | 
|Affiliate network              |  |            | 3.0  |  |             |   | 347   |            |  |  |         |  |  |   |       | 
|Backlog                        |  |            | 0.25 |  |             |   | 124   |            |  |  | 0.25     |  |  |   | 264    | 
|                               |  |            |      |  |             |   |       |            |  |  |          | 
|Total other intangible assets  |  |            |      |  |             | $ | 4,549 |            |  |  |          |  |  | $ | 18,194 | 
|                               |  |            |      |  |             |   |       |            |  |  |          | 





|                                                     |                                                                                    |              |         |        |              |   |         |         |  
|---------------------------------------------------- | ---------------------------------------------------------------------------------- | ------------ | ------- | ------ | ------------ | - | ------- | ------- | -
|                                                     |                                                                                    | (Unaudited)  |         |        | (Unaudited)  |  
|                                                     |                                                                                    | Year Ended   |         |        | Year Ended   |  
|                                                     |                                                                                    | December 31, |         |        | December 31, |  
|(In thousands, except per share data)                |                                                                                    | 2005         |         |        | 2004         |  
|                                                     |                                                                                    |              |         |        |              |  
|Net revenues                                         |                                                                                    | $            | 96,973  |        |              | $ | 78,310  |        
|                                                     |                                                                                    |              |         |        |              |  
|Operating income (loss)*                             |                                                                                    | $            | (81,366 | )      |              | $ | 12,212  |        
|                                                     |                                                                                    |              |         |        |              |  
|Net income (loss)**                                  |                                                                                    | $            | (66,696 | )      |              | $ | 17,786  |        
|                                                     | Less: Charge to Common Stockholders for Series C-2
    convertible preferred stock |              |         |       |              |   |         | (28,054 | )
|                                                     |                                                                                    |              |         |        |              |  
|Net loss available to common stockholders**          |                                                                                    | $            | (66,696 | )      |              | $ | (10,268 | )      
|                                                     |                                                                                    |              |         |        |              |  
|Net loss per share available to common stockholders: |                                                                                    |              |         |        |              |   |         |        
|                                                     | Basic                                                                              |              | $       | (2.64  | )            |   | $       | (0.42   | )
|                                                     |                                                                                    |              |         |        |              |  
|                                                     | Diluted                                                                            |              | $       | (2.64  | )            |   | $       | (0.42   | )
|                                                     |                                                                                    |              |         |        |              |  
|Weighted average shares outstanding:                 |                                                                                    |              |         |        |              |   |         |        
|                                                     | Basic                                                                              |              |         | 25,256 |              |   |         | 24,501  |  
|                                                     |                                                                                    |              |         |        |              |  
|                                                     | Diluted                                                                            |              |         | 25,256 |              |   |         | 24,501  |  
|                                                     |                                                                                    |              |         |        |              |  






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Included in pro forma operating income for each of the years
    ended December 31, 2005 and 2004 is additional amortization
    of approximately $5.5 million, related to the increase in
    fair value of the identifiable intangible assets associated with
    the acquisitions. Additionally, pro forma operating income was
    negatively impacted in the year ended December 31, 2005 by
    approximately $308,000 ($181,000 after tax) or $0.01 per
    share basic and diluted for legal and consulting fees associated
    with goZings sale of their business.

84



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                                                                                                                                                                                                                      
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|** | Pro forma net loss and pro forma net loss available to common
    stockholders for the year ended December 31, 2004, was
    reduced by approximately $1.3 million due to an additional
    pro forma tax benefit primarily associated with the Ciao
    acquisition.

Note 8  Accrued Expenses and Other Current
Liabilities:




|                                                   |  |              |        |  |      |   |       | 
|-------------------------------------------------- |  | ------------ | ------ |  | ---- | - | ----- | 
|                                                   |  | December 31, |       
|                                                   |  |              |       
|                                                   |  | 2005         |        |  | 2004 |  
|                                                   |  |              |        |  |      |  
|Accrued payroll, bonus and commissions             |  | $            | 2,567  |  |      | $ | 1,439 | 
|Panelist incentives                                |  |              | 4,419  |  |      |   | 896   | 
|Accrued panel costs                                |  |              | 550    |  |      |   | 1,076 | 
|Accrued restructuring costs                        |  |              | 347    |  |      |   |      | 
|Accrued management change costs                    |  |              | 754    |  |      |   |      | 
|Non-income tax accruals                            |  |              | 1,472  |  |      |   | 391   | 
|Fees associated with the follow-on public offering |  |              |       |  |      |   | 350   | 
|Fees associated with the acquisition of Ciao       |  |              | 126    |  |      |   |      | 
|Software license liability                         |  |              | 274    |  |      |   | 269   | 
|Customer deposits                                  |  |              |       |  |      |   | 118   | 
|Accrued audit and tax costs                        |  |              | 1,175  |  |      |   | 172   | 
|Outside sample accruals                            |  |              | 949    |  |      |   | 330   | 
|Other                                              |  |              | 1,943  |  |      |   | 761   | 
|                                                   |  |              |        |  |      |  
|                                                   |  | $            | 14,576 |  |      | $ | 5,802 | 
|                                                   |  |              |        |  |      |  





85



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 9  Related Parties:






| |                                      
| | -------------------------------------
| | Notes Receivable from
    Stockholder





| |                                   
| | ----------------------------------
| | Related Party Interest
    Expense



Note 10  Revolving Credit Facility:


SVB Credit Facility.




86



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Commerce Bank Credit Facility.






Note 11  Redeemable or Convertible Preferred
Stock:




| |                                                     
| | ----------------------------------------------------
| | Series C-2 Redeemable
    Non-Voting Preferred Stock

C-2


87



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


C-2 C-2


C-2 C-2


C-2 C-2 C-1


C-2 C-2 C-2


C-2 C-2 C-2


C-2 C-2




| |                                         
| | ----------------------------------------
| | Series B Convertible
    Preferred Stock



C-2


88



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


C-1 C-2




paid-in


D-42, The
Effect of the Calculation of Earnings per Share for the
Redemption or Induced Conversion of Preferred Stock


Note 12  Stockholders Equity:




| |                 
| | ----------------
| | Recapitalization

C-1 C-2


C-1


89



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |             
| | ------------
| | Common Stock











| |                                                       
| | ------------------------------------------------------
| | Series A Convertible
    Participating Preferred Stock



90



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


paid-in




C-2 C-1






| |                                                         
| | --------------------------------------------------------
| | Series C-1 Convertible
    Participating Preferred Stock

C-1 C-1


C-1 C-2


C-1 C-1 C-2


C-1 C-1


91



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                      
| | -------------------------------------
| | Unearned Stock-Based
    Compensation





| |         
| | --------
| | Warrants





| |               
| | --------------
| | Treasury Stock



Note 13  Stock Options:




| |                           
| | --------------------------
| | 1999 Stock Option
    Plan





92



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                               
| | ------------------------------
| | 2004 Equity Incentive
    Plan







| |                           
| | --------------------------
| | 2005 Inducement
    Grants



93



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           |  |               |  |  |   |       | 
|------------------------------------------------------- |  | ---------------------- | -------- | -------- | -------------------------- |  | -------------- | --------- | -------- | - | --------- |  |  | ------------ | --------- | - | --------- |  | ------------- |  |  | - | ----- | 
|                                                        |  | 1999 Stock Option Plan |          |          | 2004 Equity Incentive Plan | 
|                                                        |  |                        |          |          |                            | 
|                                                        |  |                        |          | Weighted |                            |  |                |           | Weighted |  
|                                                        |  |                        |          | Average  |                            |  |                |           | Average  |  
|                                                        |  | Number of              |          |          | Option Price               |  |                | Price Per |          |   | Number of |  |  | Option Price |           |   | Price Per | 
|                                                        |  | Shares                 |          |          | Range                      |  |                | Share     |          |   | Shares    |  |  | Range        |           |   | Share     | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Outstanding at December 31, 2002                        |  |                        | 177,813  |          |                            |  | $ 0.42-$168.84 |           |          | $ | 7.36      |  |  |              |          |   |           |  | $  -$       |  |  | $ |      | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Granted                                                 |  |                        | 600,486  |          |                            |  | $ 0.14-$  2.66 |           |          | $ | 2.15      |  |  |              |          |   |           |  | $  -$       |  |  | $ |      | 
|Canceled                                                |  |                        | (13,572  | )        |                            |  | $ 0.42-$168.84 |           |          | $ | 11.09     |  |  |              |          |   |           |  | $  -$       |  |  | $ |      | 
|Exercised                                               |  |                        | (3,590   | )        |                            |  | $ 0.42-$ 10.36 |           |          | $ | 0.67      |  |  |              |          |   |           |  | $  -$       |  |  | $ |      | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Outstanding at December 31, 2003                        |  |                        | 761,137  |          |                            |  | $ 0.14-$168.84 |           |          | $ | 3.22      |  |  |              |          |   |           |  | $  -$       |  |  | $ |      | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Granted                                                 |  |                        | 178,574  |          |                            |  | $17.64-$ 17.64 |           |          | $ | 17.64     |  |  |              | 766,180   |   |           |  | $13.00-$20.71 |  |  | $ | 13.68 | 
|Canceled                                                |  |                        | (19,569  | )        |                            |  | $ 0.42-$168.84 |           |          | $ | 3.57      |  |  |              | (1,786    | ) |           |  | $13.00-$13.00 |  |  | $ | 13.00 | 
|Exercised                                               |  |                        | (48,083  | )        |                            |  | $ 0.14-$ 10.36 |           |          | $ | 0.51      |  |  |              |          |   |           |  | $  -$       |  |  | $ |      | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Outstanding at December 31, 2004                        |  |                        | 872,059  |          |                            |  | $ 0.14-$168.84 |           |          | $ | 6.31      |  |  |              | 764,394   |   |           |  | $13.00-$20.71 |  |  | $ | 13.68 | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Granted                                                 |  |                        |         |          |                            |  | $ 0.00-$  0.00 |           |          | $ | 0.00      |  |  |              | 1,984,360 |   |           |  | $ 4.92-$16.68 |  |  | $ | 12.47 | 
|Canceled                                                |  |                        | (205,304 | )        |                            |  | $ 0.42-$168.84 |           |          | $ | 10.96     |  |  |              | (482,299  | ) |           |  | $ 9.29-$20.71 |  |  | $ | 14.62 | 
|Exercised                                               |  |                        | (97,837  | )        |                            |  | $ 0.42-$ 10.36 |           |          | $ | 2.49      |  |  |              |          |   |           |  | $  -$       |  |  | $ |      | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Outstanding at December 31, 2005                        |  |                        | 568,918  |          |                            |  | $ 0.14-$168.84 |           |          | $ | 5.40      |  |  |              | 2,266,455 |   |           |  | $ 4.92-$20.71 |  |  | $ | 12.42 | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Exercisable at December 31, 2005                        |  |                        | 376,025  |          |                            |  | $ 0.14-$168.84 |           |          | $ | 7.09      |  |  |              | 1,648,871 |   |           |  | $ 7.44-$20.25 |  |  | $ | 14.11 | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 
|Available for future option grants at December 31, 2005 |  |                        | 23,054   |          |                            |  |                |           |          |   |           |  |  |              | 1,224,451 |   |           |  |               |  |  |   |       | 
|                                                        |  |                        |          |          |                            |  |                |           |          |   |           |  |  |              |           |   |           | 

|                                 |  |                        |         |          |              |  |             |           |  |   |      | 
|-------------------------------- |  | ---------------------- | ------- | -------- | ------------ |  | ----------- | --------- |  | - | ---- | 
|                                 |  | 2005 Inducement Grants |        
|                                 |  |                        |        
|                                 |  |                        |         | Weighted |             
|                                 |  |                        |         | Average  |             
|                                 |  | Number of              |         |          | Option Price |  |             | Price Per | 
|                                 |  | Shares                 |         |          | Range        |  |             | Share     | 
|                                 |  |                        |         |          |              |  |             |           | 
|Outstanding at December 31, 2004 |  |                        |        |          |              |  | $ -$      |           |  | $ |     | 
|                                 |  |                        |         |          |              |  |             |           | 
|Granted                          |  |                        | 487,500 |          |              |  | $5.02-$5.07 |           |  | $ | 5.04 | 
|Canceled                         |  |                        |        |          |              |  | $ -$      |           |  | $ |     | 
|Exercised                        |  |                        |        |          |              |  | $ -$      |           |  | $ |     | 
|                                 |  |                        |         |          |              |  |             |           | 
|Outstanding at December 31, 2005 |  |                        | 487,500 |          |              |  | $5.02-$5.07 |           |  | $ | 5.04 | 
|                                 |  |                        |         |          |              |  |             |           | 
|Exercisable at December 31, 2005 |  |                        | 22,656  |          |              |  | $5.02-$5.07 |           |  | $ | 5.03 | 
|                                 |  |                        |         |          |              |  |             |           | 
|Reserved at December 31, 2005*   |  |                        | 187,500 |          |              |  |             |           |  |   |      | 
|                                 |  |                        |         |          |              |  |             |           | 






| |   |                                            
| | - | -------------------------------------------
| | * | These options were granted on January 2006.

94



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                           |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|---------------------------------------------------------- |  | --------- | --------- |  | ------------------ | -------- | ------------ | ----- | ---------- | ------- | -------- |  |  | - | ----- | 
|                                                           |  |           |           |  |                    | Weighted |              |       | Weighted   |        
|                                                           |  |           |           |  |                    | Average  |              |       | Average    |        
|                                                           |  |           |           |  |                    | Exercise |              |       | Fair Value |        
|                                                           |  | Number of |           |  |                    |          | Price Per    |       |            | at Date |         
|                                                           |  | Shares    |           |  | Option Price Range |          |              | Share |            |         | of Grant | 
|                                                           |  |           |           |  |                    |          |              |       |            |         |          | 
|1999 Stock Option Plan                                     |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|Year ended December 31, 2003:                              |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|Options granted with an exercise price less than market    |  |           | 600,486   |  |                    | $        | 0.14-$2.66   |       |            | $       | 2.15     |  |  | $ | 7.89  | 
|Year ended December 31, 2004:                              |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|Options granted with an exercise price equal to market     |  |           | 17,858    |  |                    | $        | 17.64-$17.64 |       |            | $       | 17.64    |  |  | $ | 10.65 | 
|Options granted with an exercise price greater than market |  |           | 160,716   |  |                    | $        | 17.64-$17.64 |       |            | $       | 17.64    |  |  | $ | 10.65 | 
|2004 Equity Incentive Plan                                 |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|Year ended December 31, 2004:                              |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|Options granted with an exercise price less than market    |  |           | 12,500    |  |                    | $        | 15.70-$15.70 |       |            | $       | 15.70    |  |  | $ | 8.29  | 
|Options granted with an exercise price equal to market     |  |           | 135,501   |  |                    | $        | 14.71-$20.71 |       |            | $       | 16.55    |  |  | $ | 8.50  | 
|Options granted with an exercise price greater than market |  |           | 618,179   |  |                    | $        | 13.00-$17.81 |       |            | $       | 13.01    |  |  | $ | 6.83  | 
|Year ended December 31, 2005:                              |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|Options granted with an exercise price equal to market     |  |           | 1,984,360 |  |                    | $        | 4.92-$16.68  |       |            | $       | 12.47    |  |  | $ | 5.80  | 
|2005 Inducement Grants                                     |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|Year ended December 31, 2005:                              |  |           |           |  |                    |          |              |       |            |         |          |  |  |   |       | 
|Options granted with an exercise price equal to market     |  |           | 487,500   |  |                    | $        | 5.02-$5.07   |       |            | $       | 5.04     |  |  | $ | 2.65  | 



95



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                         |  |                     |           |          |                     |  |           |          |  |   |             |          |  |          |           |  |  |   |        | 
|------------------------ |  | ------------------- | --------- | -------- | ------------------- |  | --------- | -------- |  | - | ----------- | -------- |  | -------- | --------- |  |  | - | ------ | 
|                         |  | Options Outstanding |           |          | Options Exercisable | 
|                         |  |                     |           |          |                     | 
|                         |  |                     |           | Weighted |                     |  | Weighted  |          |  |   |             | Weighted | 
|                         |  | Number of           |           |          | Average             |  |           | Average  |  |   | Number of   |          |  | Average  |          
|                         |  | Outstanding         |           |          | Remaining           |  |           | Exercise |  |   | Exercisable |          |  | Exercise |          
|Range of Exercise Prices |  | Options             |           |          | Contractual Life    |  |           | Price    |  |   | Options     |          |  | Price    |          
|                         |  |                     |           |          |                     |  |           |          |  |   |             |          |  |          |          
|$0.00-$0.70              |  |                     | 203,464   |          |                     |  | 4.5 years |          |  | $ | 0.31        |          |  |          | 160,578   |  |  | $ | 0.36   | 
|$0.71-$2.80              |  |                     | 270,970   |          |                     |  | 6.4 years |          |  | $ | 2.66        |          |  |          | 120,963   |  |  | $ | 2.66   | 
|$2.81-$5.00              |  |                     | 3,000     |          |                     |  | 6.8 years |          |  | $ | 4.92        |          |  |          |          |  |  | $ |       | 
|$5.01-$7.44              |  |                     | 1,073,000 |          |                     |  | 6.8 years |          |  | $ | 6.34        |          |  |          | 70,572    |  |  | $ | 6.67   | 
|$7.45-$13.00             |  |                     | 524,714   |          |                     |  | 8.0 years |          |  | $ | 12.69       |          |  |          | 457,714   |  |  | $ | 12.94  | 
|$13.01-$14.99            |  |                     | 1,083,416 |          |                     |  | 5.8 years |          |  | $ | 14.68       |          |  |          | 1,073,416 |  |  | $ | 14.67  | 
|$15.00-$20.00            |  |                     | 151,619   |          |                     |  | 8.4 years |          |  | $ | 17.10       |          |  |          | 151,619   |  |  | $ | 17.10  | 
|$20.01-$42.00            |  |                     | 8,165     |          |                     |  | 6.9 years |          |  | $ | 23.79       |          |  |          | 8,165     |  |  | $ | 23.79  | 
|$42.01-$168.84           |  |                     | 4,525     |          |                     |  | 4.2 years |          |  | $ | 162.45      |          |  |          | 4,525     |  |  | $ | 162.45 | 



| |                                           
| | ------------------------------------------
| | Modification of certain
    option grants.

out-of






96



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 14  Taxes on Income:




|                                      |                       |                                  |         |   |         |   |       |      |       |   |       |   |       |  
|------------------------------------- | --------------------- | -------------------------------- | ------- | - | ------- | - | ----- | ---- | ----- | - | ----- | - | ----- | -
|                                      |                       | For the Years Ended December 31, |        
|                                      |                       |                                  |        
|                                      |                       | 2005                             |         |   | 2004    |   |       | 2003 |      
|                                      |                       |                                  |         |   |         |   |       |      |      
|(Loss) income before income taxes:    |                       |                                  |         |   |         |   |       |      |       |   |       |  
|                                      |                       | Domestic                         |         | $ | 1,030   |   |       | $    | 5,855 |   |       | $ | 1,853 |  
|                                      |                       | Foreign                          |         |   | (82,742 | ) |       |      | 274   |   |       |   | (55   | )
|                                      |                       |                                  |         |   |         |   |       |      |      
|                                      |                       | $                                | (81,712 | ) |         | $ | 6,129 |      |       | $ | 1,798 |  
|                                      |                       |                                  |         |   |         |   |       |      |      
|Provision (benefit) for income taxes: |                       |                                  |         |   |         |   |       |      |       |   |       |  
|                                      | Currently payable:    |                                  |         |   |         |   |       |      |       |   |       |   |      
|                                      |                       | Federal                          |         | $ | 496     |   |       | $    | 185   |   |       | $ | 74    |  
|                                      |                       | State                            |         |   | 63      |   |       |      | 209   |   |       |   | 73    |  
|                                      |                       | Foreign                          |         |   | 2,080   |   |       |      | 17    |   |       |   | 3     |  
|                                      |                       |                                  |         |   |         |   |       |      |      
|Total current income tax provision    |                       |                                  | 2,639   |   |         |   | 411   |      |       |   | 150   |  
|                                      |                       |                                  |         |   |         |   |       |      |      
|                                      | Deferred tax benefit: |                                  |         |   |         |   |       |      |       |   |       |   |      
|                                      |                       | Federal                          |         |   | (16,239 | ) |       |      |      |   |       |   |      |  
|                                      |                       | State                            |         |   | (2,639  | ) |       |      |      |   |       |   |      |  
|                                      |                       | Foreign                          |         |   | 486     |   |       |      |      |   |       |   |      |  
|                                      |                       |                                  |         |   |         |   |       |      |      
|Total deferred income tax benefit     |                       |                                  | (18,392 | ) |         |   |      |      |       |   |      |  
|                                      |                       |                                  |         |   |         |   |       |      |      
|Total income tax (benefit) provision  |                       | $                                | (15,753 | ) |         | $ | 411   |      |       | $ | 150   |  
|                                      |                       |                                  |         |   |         |   |       |      |      



|                                   |                               |                |        |        |              |   |         |   | 
|---------------------------------- | ----------------------------- | -------------- | ------ | ------ | ------------ | - | ------- | - | 
|                                   |                               | December 31,   |        |        | December 31, |  
|                                   |                               | 2005           |        |        | 2004         |  
|                                   |                               |                |        |        |              |  
|                                   |                               | (In thousands) |       
|Deferred tax assets (liabilities): |                               |                |        |        |              |   |         |  
|Net operating loss carryforwards   |                               | $              | 19,053 |        |              | $ | 14,108  |  
|Stock-based compensation           |                               |                | 3,657  |        |              |   | 3,544   |  
|Capitalized panel costs            |                               |                | 391    |        |              |   | 1,102   |  
|Intangible assets acquired         |                               |                | (6,064 | )      |              |   |        |  
|Foreign exchange                   |                               |                | 2,942  |        |              |   |        |  
|Fixed assets                       |                               |                | 289    |        |              |   | 179     |  
|Federal and state tax credits      |                               |                | 2,281  |        |              |   | 664     |  
|Other deferred tax assets          |                               |                | 932    |        |              |   | 220     |  
|                                   |                               |                |        |        |              |  
|Net deferred tax asset             |                               |                | 23,481 |        |              |   | 19,817  |  
|Valuation allowance                |                               |                | (1,481 | )      |              |   | (19,817 | )
|                                   |                               |                |        |        |              |  
|                                   | Total net deferred tax assets |                | $      | 22,000 |              |   | $       |  | 
|                                   |                               |                |        |        |              |  

97



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










98



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                                      |       |                     |       |      |      |  |       |      |   |  |       |     |  
|----------------------------------------------------- | ----- | ------------------- | ----- | ---- | ---- |  | ----- | ---- | - |  | ----- | --- | -
|                                                      |       | For the Years Ended |      
|                                                      |       | December 31,        |      
|                                                      |       |                     |      
|                                                      |       | 2005                |       |      | 2004 |  |       | 2003 |  
|                                                      |       |                     |       |      |      |  |       |      |  
|Statutory federal income tax rate                     |       |                     | 35.0  | %    |      |  | 34.0  | %    |   |  | 34.0  | %  
|State income taxes, net of federal income tax benefit |       |                     | (0.4  | )    |      |  | 9.6   |      |   |  | 2.7   |    
|Foreign income taxes                                  |       |                     | (0.1  | )    |      |  |      |      |   |  |      |    
|Alternative minimum taxes                             |       |                     |      |      |      |  |      |      |   |  | 4.1   |    
|Deferred compensation and other                       |       |                     |      |      |      |  | 6.7   |      |   |  | 1.4   |    
|Change in deferred tax asset valuation allowance      |       |                     | 22.2  |      |      |  | (42.8 | )    |   |  | (33.5 | )  
|Goodwill impairment                                   |       |                     | (38.5 | )    |      |  |      |      |   |  |      |    
|Rate change                                           |       |                     | 0.4   |      |      |  |      |      |   |  |      |    
|Other reconciling items                               |       |                     | 0.7   |      |      |  | (0.8  | )    |   |  | (0.4  | )  
|                                                      |       |                     |       |      |      |  |       |      |  
|                                                      | Total |                     |       | 19.3 | %    |  |       | 6.7  | % |  |       | 8.3 | %
|                                                      |       |                     |       |      |      |  |       |      |  

Note 15  Management Change:






Note 16  Restructuring Program:




99



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                        |                                                    |               |   |       |                  |  |       |          |  |  |   |     |  
|----------------------- | -------------------------------------------------- | ------------- | - | ----- | ---------------- |  | ----- | -------- |  |  | - | --- | -
|                        |                                                    |               |   | Lease |                  |  | North |         
|                        |                                                    | Severance and |   |       | Cancellation and |  |       | American | 
|                        |                                                    | Related Costs |   |       | Other Costs      |  |       | Total    | 
|                        |                                                    |               |   |       |                  |  |       |          | 
|Restructuring activity: |                                                    |               |   |       |                  |  |       |          |  |  |   |    
|                        | Initial provision                                  |               | $ | 379   |                  |  | $     |         |  |  | $ | 379 |  
|                        | Charges against reserve                            |               |   | (32   | )                |  |       |         |  |  |   | (32 | )
|                        |                                                    |               |   |       |                  |  |       |          | 
|                        | Balance at December 31, 2005                       |               | $ | 347   |                  |  | $     |         |  |  | $ | 347 |  
|                        |                                                    |               |   |       |                  |  |       |          | 
|Additional information: |                                                    |               |   |       |                  |  |       |          |  |  |   |    
|                        | Cumulative amount incurred as of December 31, 2005 |               | $ | 379   |                  |  | $     |         |  |  | $ | 379 |  
|                        |                                                    |               |   |       |                  |  |       |          | 
|                        | Total expected amounts to be incurred*             |               | $ | 455   |                  |  | $     | 446      |  |  | $ | 901 |  
|                        |                                                    |               |   |       |                  |  |       |          | 






|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | The total expected amounts of $901,000 represents the cumulative
    amount incurred through December 31, 2005 plus additional
    expected restructuring charges of $522,000, primarily related to
    the lease terminations that we have identified to date that have
    not yet been recognized in the Consolidated Financial
    Statements, excluding interest accretion on the reserve. We have
    currently estimated a sub-lease rental component in our lease
    cancellations and other costs. Both the timing and amount of
    these estimates are dependent on external factors and may
    materially differ once such contracts are finalized.



Note 17  Segment Reporting:




100



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                                   |                                       |                                  |         |         |      |   |        |        |  |   |        |        | 
|---------------------------------- | ------------------------------------- | -------------------------------- | ------- | ------- | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                                   |                                       | For the Years Ended December 31, |        
|                                   |                                       |                                  |        
|                                   |                                       | 2005                             |         |         | 2004 |   |        | 2003   | 
|                                   |                                       |                                  |         |         |      |   |        |        | 
|Net revenues:                      |                                       |                                  |         |         |      |   |        |        |  |   |        |       
|                                   | North America                         |                                  | $       | 64,505  |      |   | $      | 44,428 |  |   | $      | 25,868 | 
|                                   | Europe*                               |                                  |         | 28,927  |      |   |        |       |  |   |        |       | 
|                                   | Elimination of inter-segment revenues |                                  |         | (4,253  | )    |   |        |       |  |   |        |       | 
|                                   |                                       |                                  |         |         |      |   |        |        | 
|Total net revenues                 |                                       | $                                | 89,179  |         |      | $ | 44,428 |        |  | $ | 25,868 |       
|                                   |                                       |                                  |         |         |      |   |        |        | 
|Operating (loss) income:           |                                       |                                  |         |         |      |   |        |        |  |   |        |       
|                                   | North America                         |                                  | $       | 2,108   |      |   | $      | 7,151  |  |   | $      | 1,697  | 
|                                   | Europe                                |                                  |         | (83,259 | )    |   |        |       |  |   |        |       | 
|                                   |                                       |                                  |         |         |      |   |        |        | 
|Total operating (loss) income      |                                       |                                  | (81,151 | )       |      |   | 7,151  |        |  |   | 1,697  |       
|Interest expense, net              |                                       |                                  | (507    | )       |      |   | (970   | )      |  |   | (495   | )     
|Currency exchange (loss) gain, net |                                       |                                  | (54     | )       |      |   | (52    | )      |  |   | 596    |       
|                                   |                                       |                                  |         |         |      |   |        |        | 
|(Loss) income before income taxes  |                                       | $                                | (81,712 | )       |      | $ | 6,129  |        |  | $ | 1,798  |       
|                                   |                                       |                                  |         |         |      |   |        |        | 






|  |                                                                                                                                                                
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Included in Europe net revenues are net revenues associated with
    our comparison shopping business of $8.6 million for the
    year ended December 31, 2005.

101



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                              |                                  |         |        |        |        |   |        |        |  |   |        |        | 
|----------------------------- | -------------------------------- | ------- | ------ | ------ | ------ | - | ------ | ------ |  | - | ------ | ------ | 
|                              |                                  | North   |        |        |        |   |       
|                              |                                  | America |        |        | Europe |   |        | Total  | 
|                              |                                  |         |        |        |        |   |        |        | 
|Year ended December 31, 2005: |                                  |         |        |        |        |   |        |        |  |   |        |       
|                              | Revenues from external customers |         | $      | 63,886 |        |   | $      | 25,293 |  |   | $      | 89,179 | 
|                              | Inter-segment revenues           |         |        | 619    |        |   |        | 3,634  |  |   |        | 4,253  | 
|                              |                                  |         |        |        |        |   |        |        | 
|Gross segment revenues        |                                  | $       | 64,505 |        |        | $ | 28,927 |        |  | $ | 93,432 |       
|                              |                                  |         |        |        |        |   |        |        | 

|                                      |                               |                                  |        |        |      |   |       |       |  |   |       |       | 
|------------------------------------- | ----------------------------- | -------------------------------- | ------ | ------ | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                                      |                               | For the Years Ended December 31, |       
|                                      |                               |                                  |       
|                                      |                               | 2005                             |        |        | 2004 |   |       | 2003  | 
|                                      |                               |                                  |        |        |      |   |       |       | 
|Included in Segment Operating Profit: |                               |                                  |        |        |      |   |       |       |  |   |       |      
|North America:                        |                               |                                  |        |        |      |   |       |       |  |   |       |      
|                                      | Depreciation and amortization |                                  | $      | 5,799  |      |   | $     | 1,845 |  |   | $     | 1,398 | 
|                                      | Stock-based compensation      |                                  |        | 872    |      |   |       | 1,345 |  |   |       | 1,282 | 
|                                      | Management change costs       |                                  |        | 1,037  |      |   |       |      |  |   |       |      | 
|                                      | Restructuring charge          |                                  |        | 379    |      |   |       |      |  |   |       |      | 
|                                      |                               |                                  |        |        |      |   |       |       | 
|                                      |                               | $                                | 8,087  |        |      | $ | 3,190 |       |  | $ | 2,680 |      
|                                      |                               |                                  |        |        |      |   |       |       | 
|Europe:                               |                               |                                  |        |        |      |   |       |       |  |   |       |      
|                                      | Depreciation and amortization |                                  | $      | 3,548  |      |   | $     |      |  |   | $     |      | 
|                                      | Impairment charges            |                                  |        | 91,379 |      |   |       |      |  |   |       |      | 
|                                      |                               |                                  |        |        |      |   |       |       | 
|                                      |                               | $                                | 94,927 |        |      | $ |      |       |  | $ |      |      
|                                      |                               |                                  |        |        |      |   |       |       | 

|                                    |                    |                    |         |        |      |   |         |         | 
|----------------------------------- | ------------------ | ------------------ | ------- | ------ | ---- | - | ------- | ------- | 
|                                    |                    | As of December 31, |        
|                                    |                    |                    |        
|                                    |                    | 2005               |         |        | 2004 |  
|                                    |                    |                    |         |        |      |  
|Total Assets:                       |                    |                    |         |        |      |   |         |        
|                                    | North America      |                    | $       | 89,895 |      |   | $       | 135,306 | 
|                                    | Europe             |                    |         | 70,965 |      |   |         |        | 
|                                    |                    |                    |         |        |      |  
|Total assets                        |                    | $                  | 160,860 |        |      | $ | 135,306 |        
|                                    |                    |                    |         |        |      |  
|Long-Lived Assets by Major Country: |                    |                    |         |        |      |   |         |        
|                                    | United States      |                    | $       | 8,098  |      |   | $       | 5,500   | 
|                                    | Germany            |                    |         | 1,580  |      |   |         |        | 
|                                    | Other, all foreign |                    |         | 1,526  |      |   |         | 724     | 
|                                    |                    |                    |         |        |      |  
|Total long-lived assets*            |                    | $                  | 11,204  |        |      | $ | 6,224   |        
|                                    |                    |                    |         |        |      |  






|  |                                                                                                          
|- | ---------------------------------------------------------------------------------------------------------
|* | Long-lived assets include the net book value of Property
    and equipment and Internal use software.

102



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                     |                                           |         |       |       |        |   |       |       |  |   |       |       | 
|------------------------------------ | ----------------------------------------- | ------- | ----- | ----- | ------ | - | ----- | ----- |  | - | ----- | ----- | 
|                                     |                                           | North   |       |       |        |   |      
|                                     |                                           | America |       |       | Europe |   |       | Total | 
|                                     |                                           |         |       |       |        |   |       |       | 
|Additions to long-lived assets:      |                                           |         |       |       |        |   |       |       |  |   |       |      
|Year ended December 31, 2005:        |                                           |         |       |       |        |   |       |       |  |   |       |      
|                                     | Cash additions                            |         | $     | 4,346 |        |   | $     | 1,128 |  |   | $     | 5,474 | 
|                                     | Additions under capital lease obligations |         |       | 2,385 |        |   |       |      |  |   |       | 2,385 | 
|                                     |                                           |         |       |       |        |   |       |       | 
|Total additions to long-lived assets |                                           | $       | 6,731 |       |        | $ | 1,128 |       |  | $ | 7,859 |      
|                                     |                                           |         |       |       |        |   |       |       | 

|                           |                    |                                  |        |        |      |   |        |        |  |   |        |        | 
|-------------------------- | ------------------ | -------------------------------- | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                           |                    | For the Years Ended December 31, |       
|                           |                    |                                  |       
|                           |                    | 2005                             |        |        | 2004 |   |        | 2003   | 
|                           |                    |                                  |        |        |      |   |        |        | 
|Revenues by Major Country: |                    |                                  |        |        |      |   |        |        |  |   |        |       
|                           | United States      |                                  | $      | 63,886 |      |   | $      | 44,428 |  |   | $      | 25,868 | 
|                           | Germany            |                                  |        | 12,447 |      |   |        |       |  |   |        |       | 
|                           | United Kingdom     |                                  |        | 8,286  |      |   |        |       |  |   |        |       | 
|                           | Other, all foreign |                                  |        | 4,560  |      |   |        |       |  |   |        |       | 
|                           |                    |                                  |        |        |      |   |        |        | 
|                           |                    | $                                | 89,179 |        |      | $ | 44,428 |        |  | $ | 25,868 |       
|                           |                    |                                  |        |        |      |   |        |        | 

Note 18  Commitments and Contingencies:




| |                                      
| | -------------------------------------
| | Lease Commitments and
    Obligations



|                                 |                                                 |         |       |       |           |   |        |  | 
|-------------------------------- | ----------------------------------------------- | ------- | ----- | ----- | --------- | - | ------ |  | 
|Fiscal Years Ending December 31, |                                                 | Capital |       |       | Operating |  
|                                 |                                                 |         |       |       |           |  
|2006                             |                                                 | $       | 2,400 |       |           | $ | 2,678  | 
|2007                             |                                                 |         | 1,759 |       |           |   | 2,537  | 
|2008                             |                                                 |         | 499   |       |           |   | 2,419  | 
|2009                             |                                                 |         | 8     |       |           |   | 1,959  | 
|2010                             |                                                 |         |      |       |           |   | 574    | 
|2011 and thereafter              |                                                 |         |      |       |           |   | 284    | 
|                                 |                                                 |         |       |       |           |  
|Total minimum lease payments     |                                                 |         | 4,666 |       |           | $ | 10,451 | 
|                                 |                                                 |         |       |       |           |  
|Amount representing interest     |                                                 |         | (573  | )     |           |   |        | 
|                                 |                                                 |         |       |       |           |  
|                                 | Present value of minimum capital lease payments |         | $     | 4,093 |           |   |        |  | 
|                                 |                                                 |         |       |       |           |  





103



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                        
| | -----------------------
| | Legal
    Contingencies



Note 19  Employee Benefit Plan:






| |                                      
| | -------------------------------------
| | 2004 Employee Stock Purchase
    Plan







104



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Quarterly Financial Data (unaudited):




|                                                 |         |         |        |        |        |   |         |        |  |   |        |        |  |   |         |        |  
|------------------------------------------------ | ------- | ------- | ------ | ------ | ------ | - | ------- | ------ |  | - | ------ | ------ |  | - | ------- | ------ | -
|                                                 |         | Quarter |       
|                                                 |         |         |       
|Fiscal Year Ended December 31, 2005(1)           |         | First   |        |        | Second |   |         | Third  |  |   | Fourth |       
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|Net revenues                                     |         | $       | 15,251 |        |        | $ | 26,283  |        |  | $ | 23,146 |        |  | $ | 24,499  |       
|Cost of revenues                                 |         |         | 4,425  |        |        |   | 7,162   |        |  |   | 6,714  |        |  |   | 6,026   |       
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|Gross profit                                     |         |         | 10,826 |        |        |   | 19,121  |        |  |   | 16,432 |        |  |   | 18,473  |       
|Operating expenses                               |         |         | 8,281  |        |        |   | 14,597  |        |  |   | 15,609 |        |  |   | 107,516 |       
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|Operating income (loss)                          |         |         | 2,545  |        |        |   | 4,524   |        |  |   | 823    |        |  |   | (89,043 | )     
|Interest income (expense), net                   |         |         | 454    |        |        |   | (232    | )      |  |   | (251   | )      |  |   | (478    | )     
|Other (expense) income, net                      |         |         | (41    | )      |        |   | 22      |        |  |   | (112   | )      |  |   | 77      |       
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|Income (loss) before income taxes                |         |         | 2,958  |        |        |   | 4,314   |        |  |   | 460    |        |  |   | (89,444 | )     
|Provision (benefit) for income taxes             |         |         | 492    |        |        |   | (14,812 | )      |  |   | (1,091 | )      |  |   | (342    | )     
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|Net Income (loss)                                |         | $       | 2,466  |        |        | $ | 19,126  |        |  | $ | 1,551  |        |  | $ | (89,102 | )     
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|Net Income (loss) per share  basic and diluted: |         |         |        |        |        |   |         |        |  |   |        |        |  |   |         |       
|                                                 | Basic   |         | $      | 0.12   |        |   | $       | 0.76   |  |   | $      | 0.06   |  |   | $       | (3.52  | )
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|                                                 | Diluted |         | $      | 0.11   |        |   | $       | 0.75   |  |   | $      | 0.06   |  |   | $       | (3.52  | )
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|Weighted average shares outstanding:             |         |         |        |        |        |   |         |        |  |   |        |        |  |   |         |       
|                                                 | Basic   |         |        | 21,174 |        |   |         | 25,041 |  |   |        | 25,292 |  |   |         | 25,303 |  
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       
|                                                 | Diluted |         |        | 21,972 |        |   |         | 25,422 |  |   |        | 25,542 |  |   |         | 25,303 |  
|                                                 |         |         |        |        |        |   |         |        |  |   |        |       






|    |                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The sum of quarterly income (loss) per share may differ from the
    full-year amounts due to rounding and the effect of weighting
    shares outstanding in the quarters rather than the full year.

105



---



##### Table of Contents





NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |        |   |   |        |        | 
|-------------------------------------------------------------------------------- | ------------------------------------------------------------ | ------- | ----- | ----- | ------ | - | ------ | ------ | - | - | ------- | ------ | - | - | ------ | ------ | 
|                                                                                 |                                                              | Quarter |      
|                                                                                 |                                                              |         |      
|Fiscal Year Ended December 31, 2004(1)                                           |                                                              | First   |       |       | Second |   |        | Third  |   |   | Fourth  |       
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|Net revenues                                                                     |                                                              | $       | 8,623 |       |        | $ | 10,229 |        |   | $ | 12,015  |        |   | $ | 13,561 |       
|Cost of revenues                                                                 |                                                              |         | 2,813 |       |        |   | 2,180  |        |   |   | 2,515   |        |   |   | 3,573  |       
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|Gross profit                                                                     |                                                              |         | 5,810 |       |        |   | 8,049  |        |   |   | 9,500   |        |   |   | 9,988  |       
|Operating expenses                                                               |                                                              |         | 5,376 |       |        |   | 6,103  |        |   |   | 7,179   |        |   |   | 7,538  |       
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|Operating income                                                                 |                                                              |         | 434   |       |        |   | 1,946  |        |   |   | 2,321   |        |   |   | 2,450  |       
|Interest (expense) income, net                                                   |                                                              |         | (83   | )     |        |   | (87    | )      |   |   | (1,017  | )      |   |   | 217    |       
|Other expense, net                                                               |                                                              |         | (5    | )     |        |   | (11    | )      |   |   | (10     | )      |   |   | (26    | )     
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|Income before income taxes                                                       |                                                              |         | 346   |       |        |   | 1,848  |        |   |   | 1,294   |        |   |   | 2,641  |       
|Provision for income taxes                                                       |                                                              |         | 21    |       |        |   | 121    |        |   |   | 51      |        |   |   | 218    |       
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|Net Income                                                                       |                                                              |         | 325   |       |        |   | 1,727  |        |   |   | 1,243   |        |   |   | 2,423  |       
|Less: Charge to common stockholders for Series B
    convertible preferred stock |                                                              |         |      |       |        |   |       |        |   |   | (28,054 | )      |   |   |       |       
|                                                                                 | Cumulative dividends on Series B convertible preferred stock |         |       | (168  | )      |   |        | (168   | ) |   |         | (46    | ) |   |        |       | 
|                                                                                 | Income allocable to participating preferred securities       |         |       | (131  | )      |   |        | (1,302 | ) |   |         | (131   | ) |   |        |       | 
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|Net Income (loss) available to common stockholders                               |                                                              | $       | 26    |       |        | $ | 257    |        |   | $ | (26,988 | )      |   | $ | 2,423  |       
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|Net Income (loss) per share  basic and diluted:                                 |                                                              |         |       |       |        |   |        |        |   |   |         |        |   |   |        |       
|                                                                                 | Basic                                                        |         | $     | 0.01  |        |   | $      | 0.13   |   |   | $       | (1.91  | ) |   | $      | 0.14   | 
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|                                                                                 | Diluted                                                      |         | $     | 0.01  |        |   | $      | 0.10   |   |   | $       | (1.91  | ) |   | $      | 0.13   | 
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|Weighted average shares outstanding:                                             |                                                              |         |       |       |        |   |        |        |   |   |         |        |   |   |        |       
|                                                                                 | Basic                                                        |         |       | 2,054 |        |   |        | 2,052  |   |   |         | 14,145 |   |   |        | 17,689 | 
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       
|                                                                                 | Diluted                                                      |         |       | 3,046 |        |   |        | 2,693  |   |   |         | 14,145 |   |   |        | 18,589 | 
|                                                                                 |                                                              |         |       |       |        |   |        |        |   |   |         |       






|    |                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The sum of quarterly income (loss) per share may differ from the
    full-year amounts due to rounding and the effect of weighting
    shares outstanding in the quarters rather than the full year.

106



---



##### Table of Contents








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE








|         |                        
|-------- | -----------------------
|Item 9A. | CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls
and Procedures


13a-15(e) 15d-15(e)


Managements Report on Internal Control Over Financial
Reporting








|                                                                                          |  |                                                                                               
|----------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------
|GREENFIELD ONLINE, INC.                                                                   |  | GREENFIELD ONLINE, INC.                                                                       
|/s/ ALBERT ANGRISANIAlbert Angrisani, Director, President
    and Chief Executive Officer |  | /s/ ROBERT E. BIESRobert E. Bies, Executive Vice President
    and
    Chief Financial Officer






|         |                  
|-------- | -----------------
|Item 9B. | OTHER INFORMATION



107



---



##### Table of Contents



PART III







|         |                                                                                                      
|-------- | -----------------------------------------------------------------------------------------------------
|Item 10. | DIRECTORS, EXECUTIVE OFFICERS AND KEY EMPLOYEES OF THE
    REGISTRANT AND RELATED STOCKHOLDER MATTERS










|         |                       
|-------- | ----------------------
|Item 11. | EXECUTIVE COMPENSATION








|         |                                                               
|-------- | --------------------------------------------------------------
|Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS








|         |                                       
|-------- | --------------------------------------
|Item 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES



PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES





| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | 1. Financial Statements can be found under
    Item 8 of Part II of this
    Form 10-K.
|
| | 2. Schedules can be found on Page 114 of this
    Form 10-K.                           
|
| | 3. The Exhibit Index is found on Pages 110
    to 112 of this Form 10-K.               

108



---



##### Table of Contents



SIGNATURES






| |                                             
| | --------------------------------------------
| | GREENFIELD ONLINE, INC.                     
|
| | /s/ ALBERT ANGRISANI                        
| |                                             
| | Albert Angrisani, Director, President       
| | and Chief Executive Officer                 
|
| | /s/ ROBERT E. BIES                          
| |                                             
| | Robert E. Bies, Executive Vice President and
| | Chief Financial Officer                     



|                                                                                          |  |                                                 
|----------------------------------------------------------------------------------------- |  | ------------------------------------------------
|                                                                                         
|/s/ ALBERT ANGRISANIAlbert Angrisani, Director, President and
    Chief Executive Officer |  | /s/ BURTON J. MANNINGBurton J. Manning, Director
|                                                                                         
|/s/ PETER SOBILOFFPeter Sobiloff, Director                                                |  | /s/ LISE J. BUYERLise J. Buyer, Director        
|                                                                                         
|/s/ JOEL R. MESZNIKJoel R. Mesznik, Director                                              |  | /s/ JOSEPH A. RIPPJoseph A. Ripp, Director      
|                                                                                         
|/s/ CHARLES W. STRYKERCharles W. Stryker, Director                                        |  |                                                 

109



---



##### Table of Contents



EXHIBIT INDEX


|        |    |       |  |                     |  |                                                                                                                                                                                                                                                                                                                                                                                         
|------- | -- | ----- |  | ------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |       |  |                    
|Number  |    |       |  | Exhibit Description
|        |    |       |  |                    
|        | 2  | .1   |  |                    |  | Asset Purchase Agreement, dated August 18, 2004, by and
    among The Dohring Company, Doug C. Dohring and Greenfield
    Online, Inc. (Filed as exhibit 2.1 to our Current Report on
    Form 8-K dated October 22, 2004.)                                                                                                                                                             
|        | 2  | .1   |  |                    |  | Stock Purchase Agreement, dated as of January 25, 2005,
    among Greenfield Online, Inc., Rapidata.net, Inc. and the
    shareholders of Rapidata.net, Inc. (Filed as exhibit 2.1 to
    our Current Report on Form 8-K dated January 25, 2005.)                                                                                                                                       
|        | 2  | .1   |  |                    |  | Agreement and Plan of Reorganization, dated as of
    February 8, 2005, among Greenfield Online, Inc., Greenfield
    Acquisition Sub, Inc. and Zing Wireless, Inc. (Filed as
    exhibit 2.1 to our Current Report on Form 8-K dated
    February 8, 2005.)                                                                                                                            
|        | 2  | .1.1 |  |                    |  | Share Purchase Agreement, dated as of April 6, 2005, among
    Greenfield Online, Inc., SRVY Acquisition GmbH and its wholly
    owned subsidiary Ciao Holding GmbH as Buyers, Ciao AG, the
    shareholders of Ciao AG as Sellers, the representative of
    the Sellers, and the Company Trustee. (Filed as
    exhibit 2.1.1 to our Current Report Form 8-K dated
    April 6, 2005.)
|        | 3  | .1**  |  |                    |  | Amended and Restated Certificate of Incorporation.                                                                                                                                                                                                                                                                                                                                      
|        | 3  | .2**  |  |                    |  | Amended and Restated Bylaws.                                                                                                                                                                                                                                                                                                                                                            
|        | 4  | .1**  |  |                    |  | Form of Common Stock Certificate of Greenfield Online, Inc.                                                                                                                                                                                                                                                                                                                             
|        | 4  | .2**  |  |                    |  | Amended and Restated Registration Rights Agreement, dated as of
    December 16, 2002, by and among Greenfield Online, Inc. and
    the stockholders listed therein.                                                                                                                                                                                                                    
|        | 10 | .2**  |  |                    |  | Amended and Restated 1999 Stock Option Plan.                                                                                                                                                                                                                                                                                                                                            
|        | 10 | .3**  |  |                    |  | 2004 Equity Incentive Plan.                                                                                                                                                                                                                                                                                                                                                             
|        | 10 | .4**  |  |                    |  | 2004 Employee Stock Purchase Plan.                                                                                                                                                                                                                                                                                                                                                      
|        | 10 | .5**  |  |                    |  | Form of Stock Option Agreement under Amended and Restated 1999
    Stock Option Plan.                                                                                                                                                                                                                                                                                                   
|        | 10 | .6**  |  |                    |  | Form of Stock Option Agreement under 2004 Equity Incentive Plan.                                                                                                                                                                                                                                                                                                                        
|        | 10 | .7**  |  |                    |  | Restricted Stock Agreement, dated December 16, 2002, by and
    between Dean A. Wiltse and Greenfield Online, Inc. and an
    amendment thereto.                                                                                                                                                                                                                                        
|        | 10 | .8**  |  |                    |  | Restricted Stock Agreement, dated December 16, 2002, by and
    between Robert E. Bies and Greenfield Online, Inc. and an
    amendment thereto.                                                                                                                                                                                                                                        
|        | 10 | .9**  |  |                    |  | Restricted Stock Agreement, dated December 16, 2002, by and
    between Jonathan A. Flatow and Greenfield Online, Inc. and
    an amendment thereto.                                                                                                                                                                                                                                    
|        | 10 | .10** |  |                    |  | Restricted Stock Agreement, dated December 16, 2002, by and
    between Hugh O. Davis and Greenfield Online, Inc. and an
    amendment thereto.                                                                                                                                                                                                                                         
|        | 10 | .11** |  |                    |  | Restricted Stock Agreement, dated December 16, 2002, by and
    between Joel R. Mesznik and Greenfield Online, Inc.                                                                                                                                                                                                                                                                     
|        | 10 | .12** |  |                    |  | License Agreement, dated December 22, 1999, by and between
    Greenfield Consulting Group, Inc. and Greenfield Online, Inc.
    and an amendment and supplement thereto.                                                                                                                                                                                                               
|        | 10 | .15** |  |                    |  | Non-Recourse Promissory Note, dated May 17, 1999, made by
    Hugh O. Davis in favor of Greenfield Online, Inc.                                                                                                                                                                                                                                                                         
|        | 10 | .16** |  |                    |  | Full Recourse Promissory Note, dated March 9, 2001, made by
    Hugh O. Davis in favor of Greenfield Online, Inc.                                                                                                                                                                                                                                                                       
|        | 10 | .17** |  |                    |  | Pledge Agreement, dated May 17, 1999, by and between
    Hugh O. Davis and Greenfield Online, Inc. and an amendment
    thereto.                                                                                                                                                                                                                                                        
|        | 10 | .19** |  |                    |  | Warrant for the purchase of shares of Class A Common Stock,
    dated August 9, 2001, issued by Greenfield Online, Inc. to
    Silicon Valley Bank.                                                                                                                                                                                                                                     
|        | 10 | .21** |  |                    |  | Lease, dated October 20, 1999, by and between Wilton Campus
    Properties, LLC and Greenfield Online, Inc.                                                                                                                                                                                                                                                                             

110



---



##### Table of Contents



|        |    |         |  |                     |  |                                                                                                                                                                                                                                                  
|------- | -- | ------- |  | ------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |         |  |                    
|Number  |    |         |  | Exhibit Description
|        |    |         |  |                    
|        | 10 | .23**   |  |                    |  | Agreement to Lease, dated March 3, 2004, by and between
    M/s Unitech Business Parks Limited and M/s Greenfield
    Online PVT. Ltd.                                                                                                           
|        | 10 | .24**   |  |                    |  | Lease Agreement, dated September 15, 1999, by and between
    Somerset Capital Group Ltd and Greenfield Online, Inc.                                                                                                                             
|        | 10 | .26** |  |                    |  | Enterprise User License Agreement, dated October 21, 2002,
    by and between Future Information Research Management, Inc. and
    Greenfield Online, Inc. and an addendum thereto.                                                              
|        | 10 | .27** |  |                    |  | Commercial Agreement, dated November 28, 2001, by and
    between Microsoft Corporation and Greenfield Online, Inc. and
    amendments thereto.                                                                                                  
|        | 10 | .28** |  |                    |  | Alliance, License and Supply Agreement, dated January 31,
    2002, by and between Taylor Nelson Sofres Intersearch
    Corporation and Greenfield Online, Inc. and amendments thereto.                                                          
|        | 10 | .29**   |  |                    |  | Form of Partnering Agreement of Greenfield Online, Inc.                                                                                                                                                                                          
|        | 10 | .30**   |  |                    |  | Amended and Restated Employment Agreement, by and between Dean
    A. Wiltse and Greenfield Online, Inc.                                                                                                                                         
|        | 10 | .31**   |  |                    |  | Amended and Restated Employment Agreement, by and between Robert
    E. Bies and Greenfield Online, Inc.                                                                                                                                         
|        | 10 | .32**   |  |                    |  | Amended and Restated Employment Agreement, by and between
    Jonathan A. Flatow and Greenfield Online, Inc.                                                                                                                                     
|        | 10 | .33**   |  |                    |  | Amended and Restated Employment Agreement, by and between Hugh
    Davis and Greenfield Online, Inc.                                                                                                                                             
|        | 10 | .34**   |  |                    |  | Employment Agreement, by and between Keith Price and Greenfield
    Online, Inc.                                                                                                                                                                 
|        | 10 | .40   |  |                    |  | Partner Agreement by and between GfK-ARBOR, LLC and Greenfield
    Online, Inc., effective November 1, 2004. (Filed as
    exhibit 10.40 to our Annual Report on form 10-K for
    the year ended December 31, 2004.)                            
|        | 10 | .41   |  |                    |  | Partner Agreement by and between GfK-Custom Research, Inc. and
    Greenfield Online, Inc., effective January 1, 2005. (Filed
    as exhibit 10.41 to our Annual Report on form 10-K for
    the year ended December 31, 2004.)                  
|        | 10 | .42    |  |                    |  | Employment Agreement dated February 8, 2005, by and between
    Matthew D. Dusig and Greenfield Online, Inc. (Filed as
    exhibit 10.42 to our Annual Report on form 10-K for
    the year ended December 31, 2004.)                            
|        | 10 | .43    |  |                    |  | Employment Agreement dated February 8, 2005, by and between
    Gregg Lavin and Greenfield Online, Inc. (Filed as
    exhibit 10.43 to our Annual Report on form 10-K for
    the year ended December 31, 2004.)                                 
|        | 10 | .44    |  |                    |  | Employment Agreement dated February 8, 2005, by and between
    Lance Suder and Greenfield Online, Inc. (Filed as
    exhibit 10.44 to our Annual Report on form 10-K for
    the year ended December 31, 2004.)                                 
|        | 10 | .45    |  |                    |  | Common Stock Purchase Subscription Agreement dated
    February 8, 2005 by and between Greenfield Online, Inc. and
    Matthew D. Dusig. (Filed as exhibit 10.45 to our
    Annual Report on form 10-K for the year ended
    December 31, 2004.)
|        | 10 | .46    |  |                    |  | Common Stock Purchase Subscription Agreement dated
    February 8, 2005 by and between Greenfield Online, Inc. and
    Gregg Lavin. (Filed as exhibit 10.46 to our Annual Report
    on form 10-K for the year ended December 31, 2004.)         
|        | 10 | .47    |  |                    |  | Common Stock Purchase Subscription Agreement dated
    February 8, 2005 by and between Greenfield Online, Inc. and
    Lance Suder. (Filed as exhibit 10.47 to our Annual Report
    on form 10-K for the year ended December 31, 2004.)         
|        | 10 | .48    |  |                    |  | Amendment to Registration Rights Agreement dated as of
    April 6, 2005. (Filed as exhibit 10.48 to our Current
    Report on Form 8-K dated April 6, 2005.)                                                                                    
|        | 10 | .50    |  |                    |  | Credit agreement dated April 6, 2005 by and between
    Commerce Bank N.A. and Greenfield Online, Inc. (Filed as
    exhibit 10.50 to our Quarterly Report on Form 10-Q for
    the quarter ended March 31, 2005.)                               

111



---



##### Table of Contents



|        |    |       |  |                     |  |                                                                                                                                                                                                                                                                          
|------- | -- | ----- |  | ------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |       |  |                    
|Number  |    |       |  | Exhibit Description
|        |    |       |  |                    
|        | 10 | .51  |  |                    |  | Employment Agreement between Ciao AG and Maximillian Ulrich
    Cartellieri with an effective date of April 6, 2005. (Filed
    as exhibit 10.51 to our Quarterly Report on Form 10-Q
    for the quarter ended June 30, 2005.)                                          
|        | 10 | .52  |  |                    |  | Employment Agreement between Ciao AG and Marcus Fredrick
    Paul with an effective date of April 6, 2005. (Filed as
    exhibit 10.52 to our Quarterly Report on Form 10-Q for
    the quarter ended June 30, 2005.)                                                    
|        | 10 | .53  |  |                    |  | Employment Agreement between Ciao AG and Gunnar Piening
    with an effective date of April 6, 2005. (Filed as
    exhibit 10.53 to our Quarterly Report on Form 10-Q for
    the quarter ended June 30, 2005.)                                                          
|        | 10 | .54  |  |                    |  | Letter of Engagement between Ciao SAS and Nicolas Metzke,
    effective August 1, 2005. (Filed as exhibit 10.54 to
    our Quarterly Report on Form 10-Q for the quarter ended
    June 30, 2005.)                                                                       
|        | 10 | .55 |  |                    |  | Amended and Restated Partner Agreement dated May 11, 2005
    by and between OTX Corporation, Zing Wireless, Inc. and
    Greenfield Online, Inc. (Filed as exhibit 10.55 to our
    Quarterly Report on Form 10-Q for the quarter ended
    June 30, 2005.)             
|        | 10 | .56  |  |                    |  | Employment Agreement between Greenfield Online, Inc. and
    Albert A. Angrisani. (Filed as exhibit 10.56 to our
    Current Report on Form 8-K dated September 28, 2005.)                                                                                               
|        | 10 | .57  |  |                    |  | Separation Letter between Greenfield Online, Inc. and
    Dean A. Wiltse. (Filed as exhibit 10.57 to our Current
    Report on Form 8-K dated September 28, 2005.)                                                                                                       
|        | 10 | .58  |  |                    |  | Amendment No. 1 with an effective date of December 1,
    2005, to the Employment Agreement dated September 28, 2005
    between Greenfield Online, Inc. and Albert Angrisani. (Filed as
    exhibit 10.58 to our Current Report on Form 8-K dated
    December 9, 2005.)
|        | 10 | .59  |  |                    |  | Form of Stock Option Grant Notice used in connection with the
    February 27, 2006 Stock Option grants. (Filed as
    exhibit 10.59 to our Current Report on Form 8-K dated
    March 3, 2005.)                                                                         
|        | 10 | .60  |  |                    |  | Amendment No. 1 to Cartellieri Employment Agreement. (Filed
    as exhibit 10.60 to our Current Report on Form 8-K
    dated March 3, 2005.)                                                                                                                             
|        | 21 | .1    |  |                    |  | List of Subsidiaries of Greenfield Online, Inc. (filed herewith).                                                                                                                                                                                                        
|        | 23 | .1    |  |                    |  | Consent of PricewaterhouseCoopers LLP, Independent Registered
    Public Accounting Firm. (filed herewith).                                                                                                                                                              
|        | 31 | .1    |  |                    |  | Certification of the Chief Executive Officer pursuant to
    Rule 13a-14(a)/ 15d-14(a) of the Securities Exchange Act of
    1934, as amended, as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002 (filed herewith).                                
|        | 31 | .2    |  |                    |  | Certification of the Chief Financial Officer pursuant to
    Rule 13a-14(a)/ 15d-14(a) of the Securities Exchange Act of
    1934, as amended, as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002 (filed herewith).                                
|        | 32 | .1    |  |                    |  | Certification of the Chief Executive Officer pursuant to
    18 U.S.C. Section 1350 as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                       
|        | 32 | .2    |  |                    |  | Certifications of the Chief Financial Officer pursuant to
    18 U.S.C. Section 1350 as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                      






|   |                                                                                                                                             
|-- | --------------------------------------------------------------------------------------------------------------------------------------------
|** | Incorporated by reference to the exhibit of same number filed
    with our Registration Statement on
    Form S-1 (File
    No. 333-114391).



| |   |                                                       
| | - | ------------------------------------------------------
| |  | Previously filed and incorporated herein by reference.



|   |                                                                                                                                                                                                                                                                                                       
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Previously filed and incorporated herein by reference, certain
    information in these exhibits has been omitted and filed
    separately with the Securities and Exchange Commission pursuant
    to a confidential treatment request under 17 C.F.R.
    Sections 200.80(b)(4), 200.83 and 230.406.

112



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


ON


FINANCIAL STATEMENT SCHEDULES






10-K, 10-K.








113



---



##### Table of Contents



SCHEDULE II




VALUATION AND QUALIFYING ACCOUNTS


(in thousands)


|                             |                                                                         |            |   |        |            |  |   |            |      |  |           |     |            |           |   |         |       |  |   |        | 
|---------------------------- | ----------------------------------------------------------------------- | ---------- | - | ------ | ---------- |  | - | ---------- | ---- |  | --------- | --- | ---------- | --------- | - | ------- | ----- |  | - | ------ | 
|                             |                                                                         | Balance at |   |        | Charged to |  |   | Charged to |      |  |           |     | Balance at |          
|                             |                                                                         | Beginning  |   |        | Costs and  |  |   | Other      |      |  |           |     | End        |          
|                             |                                                                         | of Period  |   |        | Expenses   |  |   | Accounts   |      |  | Deduction |     |            | of Period |  
|                             |                                                                         |            |   |        |            |  |   |            |      |  |           |     |            |           |  
|Year ended December 31, 2005 |                                                                         |            |   |        |            |  |   |            |      |  |           |     |            |           |   |         |       |  |   |       
|                             | Allowance for doubtful accounts (deducted from accounts
    receivable) |            | $ | 153    |            |  | $ | 575        |      |  | $         | 376 | (1)        |           | $ | (247    | )(2)  |  | $ | 857    | 
|                             | Allowance for customer credits (deducted from accounts
    receivable)  |            | $ | 276    |            |  | $ | 1,001      | (3)  |  |           |     |            |           | $ | (686    | )(4)  |  | $ | 591    | 
|                             | Valuation allowance for deferred tax Asset                              |            | $ | 19,817 |            |  | $ |           |      |  | $         | 84  | (5)        |           | $ | (18,420 | )(5)  |  | $ | 1,481  | 
|Year ended December 31, 2004 |                                                                         |            |   |        |            |  |   |            |      |  |           |     |            |           |   |         |       |  |   |       
|                             | Allowance for doubtful accounts (deducted from accounts
    receivable) |            | $ | 90     |            |  | $ | 125        |      |  |           |     |            |           | $ | (62     | )(6)  |  | $ | 153    | 
|                             | Allowance for customer credits (deducted from accounts
    receivable)  |            | $ | 129    |            |  | $ | 455        | (7)  |  |           |     |            |           | $ | (308    | )(8)  |  | $ | 276    | 
|                             | Valuation allowance for deferred tax Asset                              |            | $ | 22,703 |            |  | $ |           |      |  |           |     |            |           | $ | (2,886  | )(9)  |  | $ | 19,817 | 
|Year ended December 31, 2003 |                                                                         |            |   |        |            |  |   |            |      |  |           |     |            |           |   |         |       |  |   |       
|                             | Allowance for doubtful accounts (deducted from accounts
    receivable) |            | $ | 96     |            |  | $ | (6         | )    |  |           |     |            |           | $ |        |       |  | $ | 90     | 
|                             | Allowance for customer credits (deducted from accounts
    receivable)  |            | $ | 128    |            |  | $ | 346        | (11) |  |           |     |            |           | $ | (345    | )(10) |  | $ | 129    | 
|                             | Valuation allowance for deferred tax Asset                              |            | $ | 22,523 |            |  | $ | 180        |      |  |           |     |            |           | $ |        |       |  | $ | 22,703 | 






| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | The increase in the allowance for doubtful accounts of $376,000,
    consists of amounts recorded as a result of the acquisitions of
    goZing $121,000 and Ciao $255,000.                                                                                                                                                                                                                                                                                         
|
| | (2) | The decrease in the allowance for doubtful accounts for the year
    ended December 31, 2005 resulted from write-offs of
    $231,000 and currency fluctuations of $16,000.                                                                                                                                                                                                                                                                                        
|
| | (3) | The increase in the allowance for customer credits for the year
    ended December 31, 2005 resulted from volume rebates of
    $579,000, cash discounts of $338,000, and other customer credits
    of $84,000, all of which were charged against revenues.                                                                                                                                                                                                        
|
| | (4) | The decrease in the allowance for customer credits for the year
    ended December 31, 2005 resulted from customers utilizing
    volume rebates of $379,000 and cash discounts of $307,000.                                                                                                                                                                                                                                                                        
|
| | (5) | The reduction in the valuation allowance for the year ended
    December 31, 2005 million resulted from the full
    release of our domestic valuation allowance of
    $19.8 million of which $1.3 million was released
    through purchase accounting and the remaining $18.5 million
    was recorded as a tax benefit. This benefit was reduced by
    $0.1 million relating to a valuation allowance increase
    against certain foreign deferred tax assets.
|
| | (6) | The decrease in the allowance for doubtful accounts for the year
    ended December 31, 2004 resulted from a write-off of
    $62,000 relating to one customer.                                                                                                                                                                                                                                                                                                     
|
| | (7) | The increase in the allowance for customer credits for the year
    ended December 31, 2004 resulted from volume rebates of
    $226,000 and cash discounts of $229,000, both of which were
    charged against revenues.                                                                                                                                                                                                                                           
|
| | (8) | The decrease in the allowance for customer credits for the year
    ended December 31, 2004 resulted from customers utilizing
    discounts associated with volume rebates, of approximately
    $118,000, and cash discounts of approximately $190,000.                                                                                                                                                                                                            
|
| | (9) | The reduction in the valuation allowance for the year ended
    December 31, 2004 resulted from the utilization of deferred
    tax assets.                                                                                                                                                                                                                                                                                                                         



|     |                                                                                                                                                                                                                                                                                                                        
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | The decrease in the allowance for customer credits for the year
    ended December 31, 2003 resulted from customers utilizing
    discounts associated with volume rebates of $127,000, including
    one large customer, which accounted for approximately $102,000,
    and cash discounts of approximately $218,000.
|    
|(11) | The increase in the allowance for customer credits for the year
    ended December 31, 2003 resulted from volume rebates of
    $117,000 and cash discounts of $229,000, both of which were
    charged against revenues.                                                                                              

114