Presentation to:

APPLE Board of Directors

APPLE Board of Directors

regarding

QUAIL

QUAIL

May 3, 2007

Exhibit (c)(4)†

†

Certain information in this exhibit has been omitted and filed separately with the SEC pursuant to a confidential treatment request under Rule

24b-2 of the Securities Exchange Act of 1934, as amended.  Omitted portions are indicated in this exhibit with [*].

2

Table of Contents

I.

Executive Summary

II.

Capital Markets Overview

III.

Strategic Alternatives

IV.

Process Overview

V.

Historical Stock Price Performance

VI.

Valuation Analysis

I. Executive Summary

*

*

*

*

*

*

*

4

Executive Summary

After

initial

meetings

in

February

and

early

March

with

APPLE

management

and

early

indications

of

value

in

the

high

$20’s

to

$30

per

share,

OSPREY

commenced

an

extensive

diligence

process, including numerous third party advisors

OSPREY,

with

the

approval

of

APPLE,

invited

CANARY

to

participate

as

an

equity

co-sponsor

on April 5

th

After concluding their diligence process, OSPREY and CANARY revised their valuation taking

into account conservative views regarding:

–

APPLE’s core Financial Services business and overall Credit Card direct mail revenues

–

Recent changes to [*] and [*] contracts

–

European growth

–

Feedback from large FI customer calls

–

Capital expenditure savings

–

Business

transformation

projects

–

offshoring,

internal

financial

reporting,

etc.

–

Early

stage

nature

of

next

generation

products

–

Relevance,

BIG,

and

consulting

After

its

preliminary

analysis,

QUAIL

submitted

to

APPLE

on

April

25

th

,

a

letter

indicating

its

interest in acquiring all of the shares it does not currently own at $26.00 per share

QUAIL and its advisors participated in an on-site diligence session with APPLE management on

April 30

th

and May 1

st

[*] Certain information in this exhibit has been omitted and filed separately with the SEC pursuant to a confidential treatment request under

Rule

24b-2 of the Exchange Act.

5

Proposal Valuation Summary

Note:

Projected

results

based

on

APPLE

management

forecast

as

presented

to

BOD,

adjusted

for

acquisitions

of

Harbinger

and

Kefta

and

certain

capex

savings.

(a) EBITDA less Capital Lease Principal and Interest Payments less Purchased Software Licenses.

(Dollars in Millions, Except per Share)

QUAIL

Proposal

Price Per Share (5/2/07)

23.08

$        

26.00

$        

Implied Premium:

Current

23.08

$        

12.7%

30 Day Average

21.77

19.4%

90 Day Average

22.78

14.1%

Fully Diluted Shares Outstanding (Treasury Method)

80.3

81.2

Market Capitalization

1,854.4

$     

2,110.6

$     

Plus: Debt (3/31/07)

755.8

755.8

Less Cash: (3/31/07)

(37.8)

(37.8)

Enterprise Value

2,572.4

$     

2,828.6

$     

Valuation Multiples

Revenue:

3/31/07

1,395.8

$     

1.8x

2.0x

3/31/08

1,465.4

1.8 

1.9 

EBITDA:

3/31/07

394.6

$        

6.5x

7.2x

3/31/08

392.1

6.6 

7.2 

Adjusted EBITDA (a):

3/31/07

270.3

$        

9.5x

10.5x

3/31/08

300.8

8.6 

9.4 

EBIT:

3/31/07

167.3

$        

15.4x

16.9x

3/31/08

189.0

13.6 

15.0 

EPS:

3/31/07

0.95

$           

24.4x

27.5x

3/31/08

1.02

22.7 

25.5 

Current

II. Capital Markets Overview

*

*

*

*

*

*

*

*

7

Capital Markets Overview

The

private

capital

markets

have

demonstrated

unprecedented

levels

of

liquidity

and

activity

over

the past 12 months; this has fueled a highly competitive market for private equity deals

First

quarter

2007

was

one

of

the

most

prolific

ever

for

the

leveraged

loan

markets

–

New

issue

volume

climbed

to

$183

billion

from

the

previous

record

of

$148

billion

achieved

in

the

fourth

quarter of 2006

–

Mergers

&

acquisitions

were

the

primary

driver

of

loan

growth

($97

billion

in

volume)

Although

interest

rates

have

returned

to

historical

averages,

new-issue

spreads

achieved

an

all-

time

low in February

Private equity capital continues to be raised at an unprecedented rate

–

Goldman

Sachs

recently

announced

that

it

has

raised

a

record

$20

billion

for

its

latest

leveraged

buyout

fund, GS Capital Partners VI

–

Blackstone has raised $18.2 billion of a targeted $20 billion for its latest fund

–

Texas

Pacific,

KKR

and

Carlyle

have

recently

launched

funds

with

targeted

investments

of

at

least

$15

billion

Debt multiples for LBO transactions have consistently increased since 2002

–

42% of all LBO transactions in the first quarter of 2007 had Debt / EBITDA multiples greater than 6.0x, up

from 0% in 2002

–

Covenant-light and amortization-light structures have become more prevalent

8

Private Equity Capital Raised

Estimated $136 billion of uninvested capital by financial sponsors*

Assuming 6 to 7 times purchasing power, buyout firms have the capacity to pursue nearly $1

trillion in total transaction value with capital that has already been raised

Private Equity Capital Raised:  2002 –

2006**

* Source: AFX International article dated 11/15/06.

** Source: Thomson Venture Economics / NVCA.

$24.8

$29.0

$51.2

$96.1

$102.9

$28.7

$39.7

$69.8

$124.1

$131.5

$3.8

$10.7

$18.6

$28.0

$28.6

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

2002

2003

2004

2005

2006

Venture Capital

Buyout & Mezzanine

9

Buyout Related Disbursements

The

number

and

size

of

buyout

transactions

have

accelerated

over

the

last

3

years

given

the

availability of debt and equity capital and the favorable interest rate environment

$7.7

$15.8

$17.2

$31.3

$60.9

$34.8

$51.1

$35.3

$21.7

$34.4

$38.2

$45.5

$48.6

610

2,499

2,026

1,744

1,501

889

4,150

1,545

1,414

1,530

1,976

2,608

2,611

$-

$20.0

$40.0

$60.0

$80.0

$100.0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

YTD

2007

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Source: Thomson Venture Economics / NVCA.

Buyout Related Deals:  1995 –

YTD 2007

10

Leveraged Buyout Loan Volume

Leveraged

buyout

loan

volume

has

increased

rapidly

over

the

past

5

quarters

as

private

equity

firms seek to deploy billions of dollars of capital raised for buyout funds

U.S. Leveraged Buyout Loan Volume:  2002 –

YTD 2007

Source: Standard & Poor’s Leveraged Commentary & Data.

$2.0

$2.6

$1.4

$5.2

$5.6

$2.1

$5.3

$7.3

$8.4

$10.0

$16.2

$12.8

$16.7

$13.1

$17.7

$31.8

$21.0

$45.6

$52.8

$23.1

$17.0

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

1Q02

3Q02

1Q03

3Q03

1Q04

3Q04

1Q05

3Q05

1Q06

3Q06

1Q07

Funded Bank Debt

Unfunded Bank Debt

11

Large Cap Leverage Trends

As illustrated below, leverage ratios have improved as lenders have extended credit to finance

LBO transactions

Despite the dramatic increase in leverage multiples, default rates have fallen to all time lows with

no new institutional loan defaults in the first quarter of 2007

Debt / EBITDA Multiples for Large Corporate (a)

LBOs:  2001 –

YTD 2007

Source: Standard & Poor’s Leveraged Commentary & Data.

(a) Defined as Issuers with EBITDA greater than $50 million.

4.1x

4.0x

4.5x

4.9x

5.3x

5.4x

5.7x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2001

2002

2003

2004

2005

2006

1Q07

First Lien Debt

Second Lien Debt

Other Sr Debt/EBITDA

Sub Debt/EBITDA

12

Corporate Debt Pricing Trends

Spreads have narrowed over the past 5 years between corporate investment grade and non-

investment grade bonds

Corporate Bond Interest Rate Trends: Last 5 Years

Source: The Yield Book.

0

100

200

300

400

500

600

700

800

5/1/02

11/1/02

5/1/03

11/1/03

5/1/04

11/1/04

5/1/05

11/1/05

5/1/06

11/1/06

5/1/07

BB Composite

BBB Composite

III. Strategic Alternatives

*

*

*

*

*

*

*

14

Summary of Strategic Alternatives

Status Quo

Leveraged

Recapitalization

Significant Equity

Investment

Transformational

Acquisition

Continue executing on

vision

Long-term beneficiary

of increasing financial

performance given:

–

Segment

realignment

–

Investment

scenarios

–

Offshoring

opportunities

–

Improved free

cash flow over the

long term

Diversifies

operational risk and

accelerates business

into high growth

areas

Synergy realization

Fortify key areas of

concern over the

long-term (i.e., data)

Favorable credit

markets

Short-term cash

distribution via

dividend or share

repurchase

Retain long-term

equity upside

Potential operating /

revenue synergies

with partner

Cash infusion

available to distribute

to shareholders or

retain to fund

investment scenarios

Validation of long-

term strategy

Quarterly earnings

pressure driven by

slow down in

financial services and

investment in

growing business

segments

Significant

investment / labor

reengineering

projects to undertake

over near term

–

Complexity of

execution

interjects risk

Execution risk

Will require

significant amount of

leverage or ceding of

significant ownership

stake to target

Will likely be very

competitive process

APPLE stock

currency is cheap

compared to deal

multiples

Typically, near term

pressure on

acquiror’s share price

Cultural fits

Operating as higher

leveraged company

with investments to

be made to drive

long-term growth

Negative perception

that Company has

exhausted all other

value-creating

investment

opportunities

May change Board

composition or

change the strategic

direction

Minimize future exit

opportunities

Lack of control

premium

Day-to-day operations

may be effected

depending on partner

strategy / conflicts

Potential impact on

customers

Difficult to negotiate

value and business

relationship`

Sale of Company

Acquisition premium

Public shareholders

receive liquidity today

vs. waiting for future

benefits to

materialize

Tap into robust credit

and private equity

markets

Potential failed

process, and resulting

consequences to

ongoing operations

Present shareholders

do not realize benefit

should future

investment scenarios

materialize

15

Status Quo –

Management Base Case

Note: Equity Value for EBITDA and EBIT assumes the applied enterprise multiple less net debt plus option proceeds.

(a) Assumes 87.9 shares outstanding. Stock prices are for illustrative purposes only.

(Dollars in Millions, Except per Share)

APPLE, as a public company, may continue to build value by executing its long-term business

strategy across its core and emerging business segments

–

Pursuit

of

potential

cost

savings

initiatives

through

additional

offshoring

and

geographic

reorganization

could drive long-term margin expansion, but have a near-term negative earnings impact

APPLE LTM

Fiscal Year Ending March 31,

Multiple

2008

2009

2010

2011

Adjusted EBITDA

301

$              

335

$              

367

$              

413

$              

Equity Value

9.5x

2,474

$           

2,942

$           

3,394

$           

4,014

$           

EBIT

189

$              

221

$              

268

$              

320

$              

Equity Value

15.4x

2,518

$           

3,156

$           

4,022

$           

5,008

$           

Average Equity Value

2,496

$           

3,049

$           

3,708

$           

4,511

$           

Implied Share Price (a)

28.39

$           

34.69

$           

42.19

$           

51.32

$           

Earnings Per Share

1.02

$             

1.36

$             

1.78

$             

2.25

$             

Implied Share Price (a)

24.4x

24.85

$           

33.26

$           

43.52

$           

54.87

$           

Implied share prices are as of the end of the applicable fiscal period

16

Transformational Acquisition

APPLE

may

also

build

long-term

value

through

a

strategic

acquisition

that

accelerates

the

Company

into

new

growth

areas,

shores

up

key

areas

of

weakness

or

capitalizes

on

the

Company’s core strengths

–

Expansion into the digital, risk, consulting and data segments

Market

for

strategic

assets

has

been

robust

with

both

strategic

and

financial

buyers

willing

to

pay

significant

premiums

related

to

potential

synergy

achievement

and

favorable

financing

terms

and

conditions

–

Google / DoubleClick –

10.0x revenue, 34.0x EBITDA

–

Pacific Equity Partners & Merrill Lynch / Veda Advantage –

6.3x revenue, 13.6x EBITDA

Many

potential

transformational

partners

have

been

acquired

or

are

rumored

to

be

in

a

sales

process:

Other Considerations:

–

Cultural fit

–

Increased leverage or

significant distribution of

shares

–

Near-term dilution

–

APPLE currently trading

near 52-week low

–

Integration / Execution risk

17

Leveraged Recapitalization: Dividend

Given the strength of APPLE’s balance sheet and expected cash flow, the Company could raise

additional debt and return capital to shareholders via a one-time cash dividend

Aggressive lending markets have recently led to:

–

Ability to obtain higher amounts of senior leverage

–

Competitive pricing

Allows shareholders to gain short-term liquidity and retain equity upside

These debt levels increase operational risks and limit the Company’s ability to make strategic

acquisitions and other investments

The table below illustrates the potential per share dividend available after a Leveraged

Recapitalization of various debt levels

(Dollars in Millions, Except per Share)

Leverage Amount:

1st Lien Note

800

$             

900

$             

1,000

$          

1,000

$          

1,000

$          

Senior Subordinated Note

-

-

-

100

200

Existing Capital Lease

121

121

121

121

121

Total

921

$             

1,021

$          

1,121

$          

1,221

$          

1,321

$          

Proceeds Available for Dividend (after expenses):

Total

156

$             

254

$             

353

$             

451

$             

548

$             

Per Share

1.99

$            

3.25

$            

4.51

$            

5.75

$            

7.00

$            

Current Yield

8.6%

14.1%

19.5%

24.9%

30.3%

Pro Forma Adjusted EBITDA Leverage Multiples:

1st Lien Note

3.0x

3.3x

3.7x

3.7x

3.7x

Senior Subordinated Note

0.0 

0.0 

0.0 

0.4 

0.7 

Existing Capital Lease

0.4 

0.4 

0.4 

0.4 

0.4 

Total

3.4x

3.8x

4.1x

4.5x

4.9x

Pro Forma Coverage Ratios:

EBITDA / Net Interest Expense

3.9x

3.6x

3.2x

2.9x

2.6x

Fixed Charge Coverage Ratio

1.24x

1.18x

1.14x

1.09x

1.04x

18

Recent

One-Time

Special

Dividends

Stephens analyzed the impact of selected one-time special dividends completed since 2005

–

Market Capitalization greater than $100 million

–

Dividend greater than $0.50 per share

The companies analyzed:

–

Issued dividends with a median current yield of 12.5% (mean of 20.3%)

–

Posted a median price increase on the day following the announcement of 1.7% (mean increase of 4.0%)

Source: FactSet, public filings and press releases.

(Dollars in Millions, Except per Share)

Pre-Announcement

Dividend

Stock Impact

$ Change

Date

Market

Share

Total

Per

Dividend

1 Day Post

Ex. Dividend

Ex-Div.

Company

Announced

Ex. Div.

Cap

Price

Amount

Share

Yield

Announce

1 Day

30 Day

Date

Dean Foods

3/2/07

4/3/07

5,826.8

$     

45.39

$        

1,925.6

$     

15.00

$        

33.0%

3.6%

4.2%

13.3%

(13.63)

$       

General Maritime

2/21/07

3/26/07

1,308.6

39.97

491.1

15.00

37.5%

8.3%

4.3%

20.2%

(13.77)

Health Management Associates, Inc.

1/17/07

3/2/07

4,965.8

20.63

2,407.1

10.00

48.5%

0.2%

4.3%

16.4%

(9.58)

Saks Inc.

10/3/06

12/1/06

2,327.0

17.11

544.0

4.00

23.4%

4.8%

2.2%

7.9%

(3.64)

Syntel Inc.

8/15/06

8/29/06

843.7

20.74

50.8

1.25

6.0%

6.8%

0.3%

6.1%

(1.18)

USA Mobility Inc.

6/7/06

6/28/06

544.0

19.99

81.6

3.00

15.0%

2.7%

3.4%

10.4%

(2.47)

Cablevision System

4/7/06

4/25/06

6,082.3

27.00

2,252.7

10.00

37.0%

0.9%

5.8%

9.5%

(8.94)

TOP Tankers Inc.

4/6/06

4/12/06

341.5

12.16

70.2

2.50

20.6%

1.6%

-2.5%

-18.1%

(2.75)

TOP Tankers Inc.

3/13/06

3/28/06

388.1

13.82

140.4

5.00

36.2%

23.6%

7.7%

-22.0%

(4.02)

Todd Shipyards Corp.

3/27/06

6/1/06

153.2

28.25

21.7

4.00

14.2%

7.1%

1.4%

-19.9%

(3.60)

Whole Foods Market Inc.

11/9/05

1/11/06

9,853.3

72.50

292.2

2.15

3.0%

-3.7%

0.1%

-14.7%

(2.08)

Aldila Inc.

11/18/05

11/30/05

125.0

24.38

5.1

1.00

4.1%

1.2%

1.2%

2.1%

(0.69)

USA Mobility Inc

11/9/05

11/29/05

662.6

24.70

40.8

1.50

6.1%

5.8%

0.2%

5.9%

(1.44)

Park Electrochemical Corp.

10/19/05

11/10/05

493.6

24.78

19.9

1.00

4.0%

1.1%

3.8%

1.0%

(0.06)

Steven Madden Ltd.

11/2/05

11/9/05

337.9

17.57

12.9

0.67

3.8%

-1.8%

2.8%

11.4%

(0.17)

Duke Realty Corp.

10/26/05

11/9/05

4,804.1

33.62

150.0

1.05

3.1%

-1.5%

0.6%

3.9%

(0.86)

Cutter & Buck Inc.

10/19/05

10/31/05

137.6

12.26

15.0

1.34

10.9%

1.9%

4.0%

2.1%

(0.87)

Pharmaceutical Product Development Inc.

10/5/05

10/13/05

3,277.0

28.94

118.9

1.05

3.6%

-5.0%

3.5%

8.2%

(0.10)

Aldila Inc.

5/18/05

6/3/05

117.9

23.00

5.6

1.10

4.8%

-1.3%

-1.5%

-9.6%

(1.43)

Syms Corp.

4/7/05

4/25/05

198.4

13.15

15.1

1.00

7.6%

3.4%

-1.1%

5.6%

(1.14)

Atlantis Plastics Inc.

3/23/05

4/11/05

100.1

18.01

69.5

12.50

69.4%

29.9%

12.3%

-25.6%

(11.42)

Fidelity National Financial

12/10/04

3/29/05

7,368.4

44.70

1,648.4

10.00

22.4%

1.0%

7.1%

1.9%

(7.15)

Gentek Inc.

2/28/05

3/17/05

489.3

48.45

313.1

31.00

64.0%

-0.4%

5.3%

-21.2%

(30.10)

Liberty Corp.

2/8/05

3/11/05

736.0

39.85

73.9

4.00

10.0%

6.1%

-0.6%

0.3%

(4.25)

Median

12.5%

1.7%

3.1%

3.0%

Mean

20.3%

4.0%

2.9%

-0.2%

19

Leveraged Recapitalization: Share Repurchase

(Dollars in Millions, Except per Share)

APPLE could also utilize its balance sheet and cash flow prospects to raise additional debt and

repurchase shares in the open market or through a tender offer

Leverage Amount:

1st Lien Note

800

$         

900

$         

1,000

$      

1,000

$      

1,000

$      

Senior Subordinated Note

-

-

-

100

200

Existing Capital Lease

121

121

121

121

121

Total

921

1,021

1,121

1,221

1,321

Less: Existing Debt

(756)

(756)

(756)

(756)

(756)

Less: Estimated Expenses

(10)

(11)

(13)

(15)

(18)

Proceeds Available for Share Repurchase

156

$         

254

$         

353

$         

451

$         

548

$         

Shares Purchased @ $26.00

6.0

9.8

13.6

17.3

21.1

% of Shares Outstanding

7.6%

12.5%

17.3%

22.1%

26.9%

2008 Base Case EPS

1.02

$        

1.02

$        

1.02

$        

1.02

$        

1.02

$        

2008 Pro Forma EPS

1.01

1.00

0.98

0.95

0.90

Accretion -

$

(0.01)

$       

(0.02)

$       

(0.03)

$       

(0.07)

$       

(0.11)

$       

Accretion -

%

-0.8%

-2.0%

-3.3%

-7.1%

-11.2%

1st Lien Note

3.0x

3.3x

3.7x

3.7x

3.7x

Senior Subordinated Note

0.0 

0.0 

0.0 

0.4 

0.7 

Existing Capital Lease

0.4 

0.4 

0.4 

0.4 

0.4 

Total

3.4x

3.8x

4.1x

4.5x

4.9x

Pro Forma Coverage Ratios:

EBITDA / Net Interest Expense

3.9x

3.6x

3.2x

2.9x

2.6x

Fixed Charge Coverage Ratio

1.24x

1.18x

1.14x

1.09x

1.04x

Pro Forma Adjusted EBITDA Leverage Multiples:

20

Significant Equity Investment

APPLE may sell a large equity stake to a strategic or financial partner to pursue acquisitions,

make investments or partially fund a cash distribution to shareholders

The

table

below

illustrates

the

potential

proceeds

available

for

corporate

use

after

an

equity

investment, assuming no additional leverage

Assumes a preferred structure will be desirable to achieve a market premium

(Dollars in Millions)

Preferred Equity Investment

250

$          

500

$          

750

$          

1,000

$       

Ownership:

Current Shareholders

89.1%

80.4%

73.2%

67.2%

New Shareholders

10.9%

19.6%

26.8%

32.8%

Share Count:

Currrent Shares Outstanding

78.3

78.3

78.3

78.3

New Shares Issued (20% Premium to 30 Day Avg.)

9.6

19.1

28.7

38.3

Pro Forma Shares Outstanding

87.9

97.5

107.1

116.6

IV. Process Overview

*

*

*

*

*

*

*

22

OSPREY Diligence Summary

Diligence

commenced

remotely

on

March

9

th

with

an

electronic

data

room

and

on-site

in

Little

Rock on March 12

th

Introduced CANARY as an Equity Partner on April 5

th

–

Meetings

with

APPLE

senior

management

and

organization

leaders

in

Little

Rock

on

April

10

th

–

April

11

th

Diligence overview

–

Electronic Data Room

–

Site Visits –

Little Rock, Conway, Downers Grove, San Mateo, Denver, London

–

On-Site Diligence Team

•

OSPREY Internal Team –

Operations and finance

•

Duff

&

Phelps

–

Accounting

and

finance

•

Fried Frank –

Legal (off-site)

•

Bain Consulting –

General industry and market study

•

Winterberry

Group

–

Marketing

consultants

•

TPI –

ITO Outsourcing

–

Financing Sources

•

Bank of America

•

JP Morgan Chase

APPLE Team members were involved in all phases of the diligence process

23

QUAIL Proposed Diligence

QUAIL’s initial diligence consisted of:

–

Review of publicly available documents

–

Receipt of APPLE base case model

–

Access to electronic data room

On-site diligence completed April 30

th

and May 1

st

–

Management

Presentations

–

QUAIL,

UBS,

Morgan

Stanley,

Deloitte

–

Financial

model

review

–

QUAIL,

UBS,

Morgan

Stanley,

Deloitte

–

Accounting

review

–

Deloitte

–

Legal

review

–

Dechert

–

Business

Review

–

Fresen

Associates

(Business

Consultant),

Synergistics

APPLE Team members involved in all phases of the diligence process

QUAIL has indicated it expects to be able to complete its diligence within 2 weeks

QUAIL indicated willingness to get to a contract by May 14

th

24

Next Steps in QUAIL Process

Complete diligence process to obtain financing and finalize valuation

Receive and evaluate ultimate QUAIL offer

–

Price

–

Transaction Structure

–

Financing Structure / Commitment

–

Key Conditions

•

MAC

•

Go-Shop and Topping Rights

•

Break Fees

•

Shareholder Vote

•

Other Conditions

–

Remaining diligence

–

Timing

Craft Go-Shop process to solicit, accommodate and evaluate potential competitive interest

Key upcoming APPLE milestones

–

Earnings

announcement

(new

guidance)

on

May

16

th

–

New segment information description

25

Go-Shop Summary

A Go-Shop provision allows a publicly-traded target to actively solicit offers from other bidders for

an agreed upon period of time after achieving the deal certainty

of signing a definitive agreement

with a buyer

Duration and Scope

–

Typically

ranges

from

20

–

60

days

–

Permits solicitation of bids from both strategic and financial buyers

–

Execute

Confidentiality

Agreement

and

grant

access

to

electronic

data

room

–

Provide access to APPLE management

–

Form of merger agreement already prepared to deliver

Information and Matching Rights

–

Typically provides for buyer to be informed of alternative bids solicited during the Go-Shop period

–

Approximately 50% of transactions with Go-Shop provisions include an obligation for the target to

negotiate

with

the

initial

purchaser

to

allow

it

to

match

or

top

any

alternative

proposal

Proxy Filing Obligations

–

Often

requires

the

merger

proxy

to

be

prepared

and

filed

with

the

SEC

as

“promptly

as

practicable”

after

the execution of the merger agreement

Breakup/Termination Fees

–

Requires a public target to pay a fee to the initial buyer if the target invokes its fiduciary out, structured as

either:

•

The same fee regardless of whether the fiduciary out is exercised for a bid solicited during the Go-Shop

period or a later unsolicited offer; or

•

A discounted fee if the transaction was abandoned in favor of a bid obtained during the Go-Shop period

(typically

30%

–

60%

of

the

full

termination

fee)

26

Go-Shop Process and Timeline

Based on the receipt of an offer, the Board will determine whether to seek additional offers for

the Company and the timing of such:

–

Negotiate terms and conditions with QUAIL and then solicit alternative bidders during Go-Shop period; or

–

Seek other interest before finalizing terms and conditions with QUAIL; or

–

Decline to proceed

in any matter

If APPLE proceeds with current offer, the Company will

-

Negotiate and execute a definitive agreement

-

Publicly announce the Transaction

-

Initiate Go-Shop period managed by Stephens

-

Prepare

and

file

preliminary

proxy

with

SEC

(20

–

45

days

to

clear

proxy)

•

If there is Go-Shop period, the Company may elect to wait until the Go-Shop period ends to file its proxy

statement

-

File for HSR review which takes approximately 30 days, or less with accelerated response

-

File definitive proxy statement and mail to shareholders

-

Hold shareholder meeting and vote

-

Close Transaction (usually same day as shareholder meeting)

27

Key

Considerations

for

APPLE

if

BOD

Elects

to

Go

Forward

(a)

Determine whether to get a “bird in hand”

or solicit other proposals

Pros of Go-Shop Process

–

Deal certainty

–

Avoids business and execution risks of failed auction and being shop worn

–

Defines diligence process for potential purchasers, thereby minimizing disruption to APPLE operations

and management time commitments

–

Go-Shop

provides

adequate

opportunity

for

potential

purchasers

that

would

pay

a

higher

price

than

the

announced offer

Cons of Go-Shop Process

–

Potential purchasers may be dissuaded from evaluating a transaction given the appearance that the

current buyer has a head start

–

Potential

cost

to

shareholders

if

termination

fee

is

paid

(typically

1.0

–

2.0%

of

equity

value)

Pros of Strategic Alternatives Announcement

–

Treats all bidders equally –

allows slower bidders to remain engaged throughout the process

–

Avoids break-up fee

Cons of Strategic Alternatives Announcement

–

Give

up

opportunity

to

have

transaction

signed

by

May

16

th

–

Stock could run up to unrealistic expectations, only to fall back later

–

Uncertainty

of

future

ownership

coupled

with

ongoing

distraction

of

auction

process

may

disrupt

growth

and day-to-day operations (employees, customers)

–

Shareholder base changes rapidly to short-term holders making it difficult to return to status quo if a deal

is not consummated

–

Failure to complete transaction leaves uncertainty

(a) Any assessment of pros and cons is dependant on the Board and Special Committee’s deliberations and discussion as well as the terms and

conditions of any agreement entered into.

28

Go-Shop Analysis

Since January 1, 2006, approximately 23.3% of all going private transactions used Go-Shop

provisions

–

Financial buyers

–

Deal size greater than $100 million

Since January 1, 2007, 12 out of 32 (37.5%) going private transactions used Go-Shop provisions

–

3 of the 12 deals resulted in a higher bid

(Dollars in Millions)

(a) Apax Partners increased its original bid from $40.00 to $41.50 during the Go-Shop period.

(b) Hellman & Friedman offered $32.50 during the Go-Shop period (April 17, 2007); higher than the original terms with ValueAct Capital of $32.10 per

share (signed March 8, 2007).

(c) Transaction

has

been

canceled

as

a

result

of

Community

Health

Systems,

Inc.

entering

a

higher

bid

of

$54.00

per

share

during

the

Go-Shop

period.

(d) Mean and median exclude Myers Industries Inc.

(e) Mean and median exclude OSI Restaurant Partners and Harrah’s Entertainment Inc.

Termination Fees

During Go-Shop

After Go-Shop

1-Day

10-Day Avg.

30-Day Avg.

200-Day Avg.

$

%

$

%

4/26/07

Harman International Industries

7,860.0

$    

120.00

$  

17.0%

16.5%

19.9%

27.1%

---

---

---

---

50

---

4/24/07

Myers Industries, Inc.

1,015.1

22.50

4.6%

10.9%

17.1%

31.9%

25.0

$      

2.5%

25.0

$      

2.5%

45

---

4/24/07

Symbion, Inc.

643.6

22.35

17.4%

13.1%

14.8%

15.9%

5.0

0.8%

12.5

1.9%

30

---

4/2/07

First Data Corp.

28,862.2

34.00

26.4%

27.6%

32.8%

40.2%

250.0

0.9%

700.0

2.4%

50

---

3/6/07

Topps

Co. Inc.

386.3

9.75

9.4%

5.1%

2.0%

11.1%

8.0

2.1%

12.0

3.1%

40

42

2/26/07

TXU Corp.

44,183.4

69.25

15.4%

19.3%

23.8%

16.8%

375.0

0.8%

1,000.0

2.3%

50

---

2/26/07

Hub International Ltd. (a)

1,810.2

41.50

20.3%

21.7%

26.3%

42.0%

21.2

1.2%

50.8

2.8%

21

21

2/5/07

Triad Hospitals, Inc.

(c)

6,838.1

50.25

16.1%

16.2%

20.0%

22.5%

20.0

0.3%

120.0

1.8%

40

39

1/28/07

Laureate Education Inc.

3,769.7

60.50

11.2%

14.9%

19.1%

24.0%

55.0

1.5%

110.0

2.9%

45

47

1/8/07

United Surgical Partners International Inc.

1,887.0

31.05

13.4%

9.8%

14.5%

8.3%

15.0

0.8%

42.0

2.2%

40

28

1/3/07

Blair Corporation

173.0

37.50

14.5%

16.1%

20.8%

20.4%

4.3

2.5%

5.2

3.0%

30

36

12/15/06

Realogy

Corporation

9,165.0

30.00

15.4%

14.6%

14.3%

25.1%

215.0

2.3%

215.0

2.3%

60

34

12/8/06

Catalina Marketing Corp.

(b)

1,623.9

32.50

34.1%

30.1%

29.8%

22.7%

8.4

0.5%

50.6

3.1%

45

---

11/5/06

OSI Restaurant Partners

3,455.0

40.00

23.3%

20.1%

21.0%

8.4%

25.0

0.7%

45.0

1.3%

50

73

10/25/06

Clear Channel Communications

27,130.0

37.60

16.8%

20.3%

25.0%

27.5%

500.0

1.8%

500.0

1.8%

21

51

10/14/06

Open Solutions Inc.

1,337.0

38.00

25.5%

29.9%

31.7%

39.4%

12.0

0.9%

30.0

2.2%

21

34

10/2/06

Harrah's Entertainment Inc.

27,893.0

90.00

35.5%

34.7%

40.8%

26.6%

500.0

1.8%

500.0

1.8%

25

79

9/11/06

Freescale

Semiconductor Inc.

18,488.0

40.00

30.1%

28.8%

34.7%

42.0%

150.0

0.8%

300.0

1.6%

50

22

7/24/06

HCA Inc.

33,090.5

51.00

17.8%

16.5%

17.4%

8.2%

300.0

0.9%

500.0

1.5%

50

16

7/13/06

Petco

Animal Supplies Inc.

1,828.0

29.00

48.1%

44.5%

47.0%

37.2%

30.0

1.6%

50.0

2.7%

21

29

6/6/06

ACE Cash Express

530.0

30.00

15.4%

12.6%

12.4%

25.9%

10.0

1.9%

15.0

2.8%

30

34

5/31/06

West Corporation

4,100.0

48.75

13.0%

13.4%

7.8%

17.5%

67.0

1.6%

93.0

2.3%

20

43

5/22/06

Jameson Inns Inc.

367.0

2.97

29.7%

24.4%

21.3%

29.0%

2.5

0.7%

5.0

1.4%

25

11

1/23/06

Sports Authority Inc.

1,300.0

37.25

20.0%

22.7%

20.6%

21.8%

30.0

2.3%

30.0

2.3%

20

23

Mean

21.1% (d)

20.2%

22.3%

24.6%

1.4%

2.3%

37

34 (e)

Median

17.4% (d)

17.9%

20.7%

24.6%

1.2%

2.3%

40

34 (e)

Announced

Date

Apollo Management, Texas Pacific

Merrill, Bain, KKR

JLL Partners

JER Partners

Blackstone, Texas Pacific, Permira, Carlyle

Leonard Green, Texas Pacific

Leonard Green

Apollo Management

Deal Target

Total

Trans. Size

Madison Dearborn, The Tormente

Co.

KKR

GS Capital Partners

KKR, GS Capital Partners

Hellman & Friedman

Acquired By

6 Parties Including KKR, Texas Pacific

Days Between

Announcement

and Proxy Filing

ApaxPartners, Morgan Stanley

Go-Shop

Duration

(# Days)

Offer Price

Per Share

Premium Over Share Price -%

Crestview Partners

TH Lee, Quadrangle

CCMP, Goldman Sachs

Welsh Carson

TH Lee, Bain Capital

Carlyle, Providence

Golden Gate Capital

Bain Capital, Catterton

10 Parties Including KKR, Citigroup

V. Historical Stock Price Performance

*

*

*

*

*

*

*

*

*

30

LTM APPLE Performance

5/17/06:

Announced

Jeffrey

W.

Ubben

will

join

the

Company’s

Board

of Directors.

E

8/7/06:

Announced

the

final

results

of

the

Company’s

Dutch

Auction

Self

Tender

in

which

11.1

million

shares

of

common

stock

were purchased at a price of $25.00 per share.

F

9/18/06:

G

H

10/25/06:

Announced

revenue

of

$348.3

million

and

EPS

of

$0.25

for

the Q2 2007 vs. consensus EPS of $0.23.

10/31/06:

Announced the opening of new data center in greater

Toronto area.

A

Announced

revenue

of

$1.3

billion

and

EPS

of

$0.74

for

the

FYE 2006 vs. consensus EPS of $0.75

C

9/22/06:

Announced

the

election

of

R.

Halsey

Wise,

President

and

CEO

of

Intergraph

Corporation,

to

the

Company’s

Board

of

Directors.

I

1/5/07:

Announced

the

acquisition

of

retail

business

solutions

provider,

Equitec.

The

Company

expects

the

transaction

to

be accretive in 2008.

J

1/24/07:

Announced revenue of $352.8 million and EPS of $0.31 for

the Q3 2007 vs. consensus EPS of $0.32.

K

2/6/07:

Announced resignation of Frank Cotroneo as Company’s

CFO and the appointment of Rodger Kline as interim CFO.

5/2/06

6/9/06

7/21/06

8/31/06

10/11/06

11/20/06

12/29/06

2/9/07

3/22/07

5/2/07

$20.00

$22.00

$24.00

$26.00

$28.00

0

1,000

2,000

3,000

4,000

5,000

6,000

A

B

C

D

E

F

G

H

I

J

K

L

M

Announced

revenue

of

$336.7

million

and

EPS

of

$0.20

for

the Q1 2007 vs. consensus EPS of $0.17.

7/26/06:

B

Announced

adjustments

to

the

Company’s

Road

Map

earnings

target

as

a

result

of

an

increase

in

options

exercised,

non-financial

advisory

fees

related

to

the

proxy

contest,

share

repurchase

through

DAST,

an

increase

in

incremental

interest

expense,

and

a

higher

effective

tax

rate.

8/31/06:

D

(May 2, 2006 –

May 2, 2007)

L

3/29/07:

Announced

the

acquisition

of

Harbinger

Technologies

Group,

an

international

consulting

and

technology

that

specializes

serving

homeland

defense,

national

security

and

the

prevention of international terrorism.

M

4/3/07:

Announced the acquisition of Kefta, a leader in real-time,

dynamic personalization solutions for the Internet.

52 Week High (9/13/06)

25.86

$        

52 Week Low (3/5/07)

21.00

30 Day Average

21.77

90 Day Average

22.78

31

5/1/02

11/20/02

6/11/03

12/31/03

7/21/04

2/9/05

8/31/05

3/22/06

10/11/06

5/2/07

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

$26.00

$28.00

0

5,000

10,000

15,000

20,000

25,000

30,000

Historical 5 Year APPLE Performance

(May 1, 2002 –

May 2, 2007)

5 Year High -

$26.91

(12/31/04)

5 Year Low -

$12.25

(10/30/02)

32

APPLE –

5 Year Trading Histogram

# of

Shares Traded

Price

Days

Average

Total

at or

Range

Traded

Volume

Volume

Below Range

Distribution of Total Volume Traded

$26.01 - $28.00

62

491,915

30,498,740

100.0%

$24.01 - $26.00

221

606,593

134,057,050

96.5%

$22.01 - $24.00

266

600,715

159,790,080

81.2%

$20.01 - $22.00

148

783,310

115,929,910

62.9%

$18.01 - $20.00

149

696,659

103,802,160

49.6%

$16.01 - $18.00

165

763,087

125,909,350

37.8%

$14.01 - $16.00

208

743,941

154,739,740

23.4%

$12.00 - $14.00

40

1,237,756

49,510,256

5.7%

Total

1,259

694,390

874,237,286

Weighted Average Price

19.85

$             

Current Price

5/2/07

23.08

$             

5.7%

17.7%

14.4%

11.9%

13.3%

3.5%

15.3%

18.3%

0.0%

5.0%

10.0%

15.0%

20.0%

(May 2, 2002 –

May 2, 2007)

33

Actual Results vs. Consensus Estimates

(Dollars in Millions, Except per Share)

Note: Gray shading indicates missed revenue and/or EPS estimates, or revised guidance downwards.

Source: Bloomberg and FactSet.

(a) FY04 and FY05 revenue estimates per Stephens Inc. research.

Actual

Estimated

% Difference

Share Price Reaction

Road Map / Outlook

Rev.

EPS

Rev. (a)

EPS

Rev.

EPS

1 Day

5 Day

30 Day

Comments

Updates

FY 07

Q4

357.9

$

0.20

$

355.7

$

0.20

$

0.6%

0.0%

N/A

N/A

N/A

N/A

N/A

Q3

352.8

0.31

365.3

0.32

-3.4%

-2.5%

-10.0%

-7.5%

-10.1%

Slower than expected revenue growth

Reduced guidance for balance of the year

Q2

348.3

0.25

354.5

0.23

-1.7%

7.0%

-0.2%

-0.6%

-0.7%

Solid performance and good positioning for

successful second half of the fiscal year

None

Q1

336.7

0.20

333.8

0.17

0.9%

15.9%

-0.3%

0.0%

1.2%

In line with long-term Financial Road Map

None

FY06

Q4

344.3

$ 

0.26

$

347.7

$

0.26

$

-1.0%

-1.2%

-2.7%

-2.9%

-3.8%

Within fiscal year Financial Road Map

None

Q3

347.4

0.31

338.9

0.25

2.5%

25.5%

4.2%

-0.5%

6.5%

Better-than-expected margins

Lowered international operating margins; added FY07

estimates

Q2

330.5

0.20

322.1

0.15

2.6%

30.0%

3.1%

8.5%

17.0%

Pre-tax charges of $15.8mm related to restructuring;

announced signing of large, new deals

None

Q1

310.3

0.07

310.0

0.09

0.1%

-21.1%

-0.9%

-2.6%

-5.8%

Pre-announced shortfall in revenue and earnings;

announced $14-$16mm of savings

Lowered FY06 international revenue growth estimates

FY05

Q4

322.5

$ 

0.16

$

308.7

$

0.21

$

4.5%

-23.8%

-13.2%

-11.9%

11.8%

Solid U.S. operations growth and disappointing

growth of the international business

Increased FY06 U.S. rev. growth est. and decreased

international revenue growth and operating margins

estimates for both segments

Q3

312.4

0.24

309.8

0.25

0.8%

-4.0%

-5.7%

-5.9%

-4.6%

Improved operating margin of the international

operations

Lowered FY05 revenue growth and international operating

margins, increased U.S. operating margins; added FY06

estimates

Q2

299.1

0.20

293.1

0.18

2.1%

11.1%

6.1%

6.2%

14.3%

High growth of the U.S. operations

None

Q1

289.0

0.14

278.8

0.14

3.6%

0.0%

-3.2%

-3.7%

-3.6%

In line with Financial Road Map

None

FY04

Q4

277.8

$ 

0.17

$

263.1

$

0.17

$

5.6%

0.0%

2.2%

0.5%

11.5%

Reported in-line results

Introduced Financial Road Map

Q3

255.2

0.22

248.1

0.19

2.9%

15.8%

-0.6%

-0.9%

3.0%

Strong pipeline with new contract that delivers

$49mm in annual revenue

Increased FYE04 revenue estimate and decreased EPS

estimate

Q2

241.1

0.13

250.0

0.13

-3.6%

0.0%

-2.6%

-2.6%

-1.5%

Revenue in low range of expectations; EPS in the

low range of previous estimates

Lowered FYE04 revenue estimate

Q1

236.7

0.05

237.3

0.05

-0.3%

0.0%

-6.4%

-7.4%

-5.9%

Continued revenue and earnings guidance for Q1

and FY04

Decreased revenue outlook for FY04 and increased EPS

estimates

34

Last

Target

Revenue

EPS

Firm

Recommendation

Report Date

Price

2007E

2008E

2007E

2008E

Credit Suisse

Underperform

2/7/07

   24.00

$    

1,391.0

$

1,434.8

$

   0.96

$  

   1.11

$  

Stephens Inc.

Equal-Weight

1/25/07

28.00

1,397.6

1,505.2

0.96

1.18

William Blair & Company

Market Perform

1/25/07

---

1,392.7

1,459.3

0.96

1.05

Piper Jaffray

Market Perform

1/25/07

23.00

1,392.5

1,446.6

0.97

1.13

Robert W. Baird & Co.

Neutral

1/25/07

26.00

1,393.8

1,480.7

0.91

1.10

Lehman Brothers

Overweight / Neutral

1/25/07

23.50

---

---

---

---

ThinkEquity Partners

Hold

1/25/07

21.00

1,393.8

1,465.8

0.94

1.00

Mean

24.25

$       

1,393.6

$

1,465.4

$

0.95

$     

1.10

$     

Median

24.30

1,393.3

1,462.6

0.96

1.11

IBES

1,393.9

$

1,470.3

$

0.95

$     

1.12

$     

APPLE Internal Estimates

1,395.8

1,453.7

0.95

1.02

APPLE Equity Research Coverage

Commentary

Commentary

Estimates

Estimates

(Dollars in Millions, Except per Share)

“We believe the risk of near-term numbers is lower now that APPLE has revised their Roadmap (as of Q3 report).  That said we do not

expect much upside to revenues in the near term given the macro environment (tough demand for traditional marketing services) and

APPLE’s

exposure

to

financial

services

and

in

particular

major

credit

card

providers.”

–

Brandon

Dobell,

Credit

Suisse,

2/6/07.

“We continue to believe that APPLE is positioned for solid, sustainable growth over the long term driven by: 1) increasing demand

for

data integration and targeted-marketing capabilities, 2) international expansion opportunities, 3) improving sales productivity as more

consultative sales efforts mature, and 4) a broadening service offering including digital marketing and risk management solutions among

others.”

–

Mark A. Bacurin, Robert W. Baird & Co., 1/25/07.

VI. Valuation Analysis

*

*

*

*

*

*

*

36

Management Case

–

Based on model provided by management to APPLE Board of Directors

–

The financial model incorporates the following events:

•

Acquisition of Harbinger and Kefta

•

Reduction in capital expenditures to reflect projected run-rate

APPLE Financial Summary

(Dollars in Millions, Except per Share)

For the Projected Fiscal Year Ending March 31,

CAGR

2008

2009

2010

2011

'08-'11

Revenue

1,465.4

$         

1,561.9

$         

1,700.2

$         

1,853.0

$         

8.1%

Growth

5.0%

6.6%

8.9%

9.0%

EBITDA

392.1

$            

411.4

$            

443.8

$            

493.4

$            

8.0%

Margin

26.8%

26.3%

26.1%

26.6%

Adjusted EBITDA

(a)

300.8

$            

334.8

$            

366.7

$            

413.4

$            

11.2%

Margin

20.5%

21.4%

21.6%

22.3%

EBIT

189.0

$            

221.1

$            

267.8

$            

320.5

$            

19.2%

Margin

12.9%

14.2%

15.8%

17.3%

Net Income

82.7

$               

111.5

$            

146.9

$            

186.6

$            

31.2%

Margin

5.6%

7.1%

8.6%

10.1%

Earnings Per Share

1.02

$               

1.36

$               

1.78

$               

2.25

$               

30.2%

Growth

7.7%

33.8%

30.8%

26.1%

(a) EBITDA less Capital Lease Principal and Interest Payments less Purchased Software Licenses.

37

Comparable Publicly-Traded Company Analysis

–

Reviewed trailing and forward trading multiples of Adjusted EBITDA, EBIT and Cash EPS of publicly-

traded information technology companies relative to growth, margins, returns, strategic/competitive

position and financial condition

Comparable Transaction Analysis

–

Reviewed recent transactions involving similar companies to APPLE and examined multiples paid

relative to strategic/synergistic opportunities, operating performance of the target and transaction

circumstances

Leverage Buyout Analysis

–

Utilized APPLE’s 4-year projection model, estimated current debt capacity, and a range of private

equity

returns

expected

in

similar

sized

transactions

(20%

–

25%)

to

derive

a

current

valuation

range

Discounted Cash Flow Analysis

–

Derived a current valuation by discounting the expected future annual cash flows generated by the

APPLE Management Case projection model including a terminal valuation. A range of terminal values

was determined by applying exit multiples of 9.0x to 11.0x to projected March 31, 2011 Adjusted

EBITDA

–

Utilized

APPLE’s

weighted

average

cost

of

capital

(WACC)

of

approximately

11

-

13%

Stephens based its valuation range on APPLE’s historical financial performance,

projections developed by Management and the following valuation methodologies:

Valuation Analysis

38

Implied Per Share Valuation Range

Based on financial projections developed by management for fiscal 2007 –

2011E

Proposal Price

$26.00

Current Price

$23.08

Adjusted EBITDA Multiple of:

9.0x -

11.0x

EBIT Multiple of:

12.0x -

14.0x

Cash PE Multiple of:

18.0x -

20.0x

Adjusted EBITDA Multiple of:

8.5x -

10.5x

EBIT Multiple of:

11.0x -

13.0x

Cash PE Multiple of:

16.0x -

19.0x

LTM 3/31/07 Adjusted EBITDA Multiple of:

10.0x -

12.5x

LTM 3/31/07 EBIT Multiple of:

15.0x -

18.0x

4-Year Equity IRR between

20.0% -

25.0%

11.0%

-

13.0%

Discount

with

a

Terminal

Multiple

of 9.0x -

11.0x of Adjusted EBITDA

Fiscal Year

Ending 3/31/08

Trading

Comparables

Fiscal Year

Ended 3/31/07

Trading

Comparables

52 Week Range

Acquisition

Comparables

Private Market /

LBO

DCF

$21.49

$16.66

$18.14

$22.36

$21.00

$27.64

$20.46

$20.15

$29.76

$20.26

$28.07

$31.25

$33.73

$27.45

$25.37

$22.91

$17.47

$17.06

$24.57

$25.86

$21.77

$32.26

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

39

Management Upside Opportunities

(Dollars in Millions, Except per Share)

For the Projected FYE March 31,

2008

2009

2010

2011

Labor Arbitrage / Efficiency Re-Engineering

9.9

$                    

37.6

$                

67.6

$                

91.1

$                

Labor Arbitrage / Efficiency Re-Engineering Transition Impact

(15.0)

-

-

-

Facilities Savings

0.9

5.0

6.4

7.4

Poland - New Cost - (50% of Facility Savings)

(0.5)

(2.5)

(3.2)

(3.7)

Total Pre-Tax Savings

(4.6)

40.1

70.8

94.8

Less Taxes @ 39.0%

1.8

(15.6)

(27.6)

(37.0)

Additional Impact

(2.8)

$                 

24.5

$                

43.2

$                

57.8

$                

Assuming Discount Rates of:

Discounted to 3/31/07

15.0%

16.0%

17.0%

Present Value of Cash Flow

77.5

$                

75.3

$                

73.3

$                

Perpetual Growth Rate:

0.0%

220.3

199.5

181.5

1.0%

238.4

215.0

194.7

2.0%

259.3

232.6

209.8

Enterprise Value

0.0%

297.8

$              

274.9

$              

254.7

$              

1.0%

315.9

290.3

268.0

2.0%

336.8

308.0

283.1

Total Shares and "In the Money" Options Outstanding

87.9

87.9

87.9

Price per Share

0.0%

3.39

$                

3.13

$                

2.90

$                

1.0%

3.59

3.30

3.05

2.0%

3.83

3.50

3.22

40

Trading Comparables

(Dollars in Millions, Except per Share)

Note: Financial information per Wall Street research.

(a) Pro Forma TALX acquisition.

(b) Pro Forma Opinion Research acquisition.

(c)

APPLE’s

2007E

–

2008E

financial

information

is

based

on

fiscal

year

3/31/08

and

3/31/09,

respectively.

Projections

provided

by

the

Company.

Ticker

Price

Equity

Enterprise

Enterprise Value / EBITDA

Enterprise Value / EBIT

Price / Cash EPS

Total Debt /

Company Name

Symbol

5/2/07

Value

Value

LTM

2007E

2008E

LTM

2007E

2008E

LTM

2007E

2008E

LTM EBITDA

Equifax Inc. (a)

EFX

40.30

$     

5,969.6

$  

6,820.0

$  

616.4

$     

661.3

$     

741.1

$     

471.0

$     

556.0

$     

595.5

$     

2.23

$        

2.23

$        

2.60

$        

1.4x

11.1x

10.3x

9.2x

14.5x

12.3x

11.5x

18.1x

18.1x

15.5x

33.3%

34.7%

34.9%

25.5%

29.2%

28.1%

The Dun & Bradstreet Corporation

DNB

91.06

5,666.6

5,987.2

459.2

$     

528.0

$     

575.8

$     

425.9

$     

476.0

$     

528.0

$     

3.87

$        

4.71

$        

5.31

$        

1.1x

13.0x

11.3x

10.4x

14.1x

12.6x

11.3x

23.5x

19.3x

17.1x

30.0%

32.4%

33.2%

27.8%

29.2%

30.4%

Alliance Data Systems Corporation

ADS

63.75

5,232.7

5,078.8

541.3

$     

606.7

$     

662.1

$     

404.3

$     

453.0

$     

493.8

$     

2.88

$        

3.50

$        

3.95

$        

2.4x

9.4x

8.4x

7.7x

12.6x

11.2x

10.3x

22.1x

18.2x

16.1x

26.1%

25.8%

25.5%

19.5%

19.3%

19.0%

ChoicePoint Inc.

CPS

38.65

3,063.7

3,484.5

336.3

$     

347.8

$     

372.7

$     

263.4

$     

272.6

$     

295.6

$     

1.98

$        

2.07

$        

2.36

$        

2.2x

10.4x

10.0x

9.3x

13.2x

12.8x

11.8x

19.5x

18.7x

16.3x

31.7%

30.9%

31.1%

24.8%

24.2%

24.7%

Fair Isaac Corporation

FIC

35.71

2,068.1

2,265.2

259.3

$     

237.2

$     

262.8

$     

207.9

$     

184.4

$     

216.5

$     

2.61

$        

2.30

$        

2.64

$        

2.3x

8.7x

9.5x

8.6x

10.9x

12.3x

10.5x

13.7x

15.5x

13.5x

31.5%

29.6%

31.5%

25.2%

23.0%

26.0%

Harte-Hanks, Inc.

HHS

26.14

2,007.1

2,167.9

225.5

$     

239.1

$     

249.9

$     

189.9

$     

201.1

$     

210.9

$     

1.45

$        

1.57

$        

1.73

$        

0.9x

9.6x

9.1x

8.7x

11.4x

10.8x

10.3x

18.0x

16.7x

15.1x

19.0%

19.0%

18.9%

16.0%

16.0%

15.9%

infoUSA Inc. (b)

IUSA

9.83

547.3

813.3

101.9

$     

112.1

$     

123.8

$     

66.1

$        

73.2

$        

83.7

$        

0.51

$        

0.78

$        

0.88

$        

0.4x

8.0x

7.3x

6.6x

12.3x

11.1x

9.7x

19.1x

12.6x

11.2x

17.3%

17.8%

19.0%

11.2%

11.6%

12.8%

Summary of Market Multiples:

Maximum

13.0x

11.3x

10.4x

14.5x

12.8x

11.8x

23.5x

19.3x

17.1x

2.4x

Minimum

8.0 

7.3 

6.6 

10.9 

10.8 

9.7 

13.7 

12.6 

11.2 

0.4x

Mean

10.0x

9.4x

8.6x

12.7x

11.9x

10.8x

19.2x

17.0x

15.0x

1.5x

Median

9.6 

9.5 

8.7 

12.6 

12.3 

10.5 

19.1 

18.1 

15.5 

1.4x

Mean (Excluding Min and Max)

9.8 

9.5 

8.7 

12.7 

11.9 

10.8 

19.4 

17.4 

15.3 

1.9x

Margins:

Mean

27.0%

27.2%

27.7%

21.4%

21.8%

22.4%

Median

30.0%

29.6%

31.1%

24.8%

23.0%

24.7%

APPLE (c)

ACXM

23.08

$     

1,854.4

$  

2,572.4

$  

270.3

$     

300.8

$     

334.8

$     

167.3

$     

189.0

$     

221.1

$     

1.01

$        

1.07

$        

1.41

$        

2.8x

9.5x

8.6x

7.7x

15.4x

13.6x

11.6x

22.9x

21.6x

16.4x

19.4%

20.5%

21.4%

12.0%

12.9%

14.2%

41

Acquisition Comparables

(Dollars in Millions)

Enterprise Value /

LTM

Closing

Enterprise

Equity

LTM

LTM

LTM

EBITDA

Date

Acquiror

Target

Value

Value

Revenue

EBITDA

EBIT

Margin

Pending

Google Inc

DoubleClick Inc

3,100.0

$       

---

300.0

$          

90.0

$            

---

30.0%

10.3x

34.4x

N/A

Pending

Cerberus Capital Management

Affiliated Computer Services

8,410.5

6,132.7

5,507.4

926.0

607.8

16.8%

1.5x

9.1x

13.8x

Pending

Hellman & Friedman LLC

Catalina Marketing Corp

1,623.9

1,559.1

466.8

158.3

119.0

33.9%

3.5x

10.3x

13.6x

Pending

Pacific Equity Partners

Veda Advantage Limited

759.0

641.2

120.2

55.7

47.6

46.3%

& Merrill Lynch Global Private Equity

6.3x

13.6x

15.9x

Pending

Equifax Inc

TALX Corp

1,401.0

1,216.4

256.8

89.9

71.1

35.0%

5.5x

15.6x

19.7x

2/1/07

Alliance Data Systems

Abacus Direct Corporation

435.0

435.0

---

38.1

---

N/A

N/A

11.4x

N/A

1/29/07

Publicis Groupe SA

Digitas Inc

1,228.4

1,375.7

714.7

63.7

48.6

8.9%

1.7x

19.3x

25.3x

12/4/06

infoUSA Inc

Opinion Research Corp

125.7

66.0

191.3

15.3

11.2

8.0%

0.7x

8.2x

11.2x

6/9/06

Alliance Data Systems

CPC Associates

70.0

70.0

---

6.0

---

N/A

N/A

11.7x

N/A

6/9/06

Private Equity Consortium

VNU N.V.

11,152.0

9,787.4

4,169.4

773.1

472.8

18.5%

2.7x

14.4x

23.6x

2/10/06

Investcorp International Inc.

CCC Information Svcs Grp Inc

602.5

463.6

200.0

56.1

48.5

28.0%

3.0x

10.7x

12.4x

9/30/05

Alliance Data Systems

Bigfoot Interactive

120.0

120.0

30.0

---

---

N/A

4.0x

N/A

N/A

9/1/05

Reed Elsevier Plc

Seisint

745.0

775.0

115.0

45.0

---

39.1%

6.5x

16.6x

N/A

8/11/05

Consortium of Investors

SunGard Data Systems Inc

10,844.3

10,964.9

3,555.9

1,046.6

709.6

29.4%

3.0x

10.4x

15.3x

7/13/05

Hellman & Friedman LLC

DoubleClick Inc

699.0

1,101.0

301.6

58.6

23.1

19.4%

2.3x

11.9x

30.3x

5/2/05

Intl. Business Machines Corp

Ascential Software Corp

655.9

1,136.6

271.9

29.0

6.9

10.7%

2.4x

22.6x

95.4x

Maximum

10.3x

34.4x

95.4x

46.3%

Minimum

0.7 

8.2 

11.2 

0.0%

Mean

3.8x

14.7x

25.1x

23.2%

Median

3.0 

11.9 

15.9 

23.7%

42

LBO Analysis

(a)

(Dollars in Millions, Except per Share)

(a) Assumes certain operating savings related to public company expenses, private company efficiencies, as well as capital expenditure

savings, totaling approximately $46 million in FY08 and $65 million in FY11.

(b) EBIT plus Depreciation and Amortization less Capital Lease Principal and Interest Payments less Purchased Software Licenses.

(c) Assumes $19.4 million of public company expense savings for Pro Forma leverage purposes.

Offer Price per Share

26.00

$       

27.00

$       

28.00

$       

29.00

$       

30.00

$       

Premium to Current Price

12.7%

17.0%

21.3%

25.6%

30.0%

Premium to 30 Day Average Price

19.4%

24.0%

28.6%

33.2%

37.8%

Equity Value

2,110.6

$    

2,199.9

$    

2,289.8

$    

2,379.7

$    

2,469.6

$    

Enterprise Value (Excludes Fees/Expenses)

2,828.6

2,917.9

3,007.8

3,097.7

3,187.6

Transaction Multiples

3/31/07E:

Revenue

2.0x

2.1x

2.2x

2.2x

2.3x

EBITDA

7.2 

7.4 

7.6 

7.8 

8.1 

Adjusted EBITDA (b)

10.5 

10.8 

11.1 

11.5 

11.8 

EBIT

16.9 

17.4 

18.0 

18.5 

19.1 

P/E

27.5 

28.5 

29.6 

30.7 

31.7 

3/31/08E:

Revenue

1.9x

2.0x

2.1x

2.1x

2.2x

EBITDA

7.2 

7.4 

7.7 

7.9 

8.1 

Adjusted EBITDA

(b)

9.4 

9.7 

10.0 

10.3 

10.6 

EBIT

15.0 

15.4 

15.9 

16.4 

16.9 

P/E

25.5 

26.5 

27.5 

28.5 

29.5 

Equity Investment

Equity Investment Required

1,103.6

$    

1,192.9

$    

1,282.8

$    

1,372.7

$    

1,462.6

$    

Total Equity / Total Capitalization

38.0%

39.9%

41.6%

43.3%

44.8%

4 Year IRR Assuming an Exit multiple of 15.0x EBIT

31.9%

29.2%

26.7%

24.5%

22.4%

4 Year IRR Assuming an Exit multiple of 10.0x Adjusted EBITDA

28.4%

26.0%

23.8%

21.7%

19.9%

Leverage & Coverage Ratios

Pro Forma

Projected Year Ending March 31,

@ $26.00 per share

2007

(c)

2008

2009

2010

2011

Senior Debt / EBITDA

2.71x

2.32x

2.06x

1.73x

1.34x

Total Debt / EBITDA

4.35 

3.88 

3.59 

3.15 

2.63 

Total Debt / Adjusted EBITDA

6.21 

4.92 

4.34 

3.76 

3.10 

Debt / Capitalization

62.0%

59.4%

57.1%

54.0%

49.7%

EBITDA / Interest Expense

2.75 

2.97 

3.20 

3.62 

4.26 

Fixed Charge Coverage Ratio

0.94x

1.28x

1.41x

1.47x

1.59x

43

Discounted Cash Flow

(a)

(Dollars in Millions, Except per Share)

(a) Based on APPLE Management Case model as presented on page 36.

For the Projected FYE March 31,

2008

2009

2010

2011

EBIT

189.0

$              

221.1

$              

267.8

$              

320.5

$              

Less Taxes @ 39.0%

(73.7)

(86.2)

(104.4)

(125.0)

Net Income Unlevered

115.3

134.8

163.3

195.5

Plus: D&A

203.1

190.4

176.1

172.9

Less: Capitalization of Deferred Expenses

(54.1)

(54.1)

(54.1)

(54.1)

Less: Development of Software

(24.0)

(15.0)

(15.0)

(15.0)

Less: Capital Expenditures

(49.3)

(53.1)

(58.8)

(64.3)

Less: Other Asset Expenditures

(35.0)

(35.0)

(35.0)

(35.0)

Plus: Gain on Sale of the Phoenix Facility

20.0

-

-

-

Less: Change in Net Working Capital

(0.1)

(11.4)

(23.2)

(25.7)

Total Unlevered Net Free Cash Flow

175.8

$              

156.7

$              

153.3

$              

174.3

$              

Assuming Discount Rates of:

Discounted to 3/31/07

11.0%

12.0%

13.0%

Present Value of Cash Flow

512.5

$              

501.8

$              

491.4

$              

Terminal Value Multiple

9.0x

2,451.2

2,364.8

2,282.2

2011 Adj. EBITDA

413.4

$              

10.0 

2,723.5

2,627.5

2,535.8

11.0 

2,995.9

2,890.3

2,789.3

Enterprise Value

9.0x

2,963.6

$           

2,866.5

$           

2,773.6

$           

10.0 

3,236.0

3,129.3

3,027.2

11.0 

3,508.3

3,392.1

3,280.8

Less: Net Debt (3/31/07)

(718.0)

$             

(718.0)

$             

(718.0)

$             

Plus: Option Proceeds

174.7

174.7

174.7

Equity Value

9.0x

2,420.3

$           

2,323.3

$           

2,230.3

$           

10.0 

2,692.7

2,586.0

2,483.9

11.0 

2,965.0

2,848.8

2,737.5

Total Shares and "In the Money" Options Outstanding

87.9

87.9

87.9

Price per Share

9.0x

27.54

$              

26.43

$              

25.37

$              

10.0 

30.63

29.42

28.26

11.0 

33.73

32.41

31.14