2009: The Year in Review

Despite the most challenging environment encountered in our 30 year history, we are pleased to report that 2009 was a positive year for General Atlantic. We made four new investments totaling $650 million in capital and invested over $200 million in seven current portfolio companies. As a whole, our portfolio companies increased substantially in value over the year, weathering the economic conditions well with profitable operations despite lower revenue growth. Our GA organization continues to be strong across all our regions globally.

There were a number of important achievements across our portfolio during the year. We are proud of our management teams' focus on adjusting their businesses to the "new" environment and taking actions to position their business for long term value creation. Despite the global recession, our companies have shown resiliency and were able to grow revenue in 2009. Operating margins have remained consistently high in part due to an early focus on cost control. We are also fortunate to have well capitalized companies with relatively low and manageable levels of debt. The $422 million IPO of Emdeon in August was one of the highlights of the year. It served both to strengthen the company's balance sheet and strategically improve their position for future acquisitions. Several of our companies - namely amedes Group, Trow and Trinet - were aggressive acquirers during the year which will position them well for value creation in 2010 and beyond. We also took advantage of greater availability of management talent to strengthen a number of our management teams. In total, we added 12 C-level executives to our portfolio companies. All of these achievements were accomplished through the active involvement of our deal teams and Resources Group.

Consistent across our new investments was our emphasis on investing in market leading companies in growing sectors of the global economy and partnering with proven management teams. We welcome the management teams and employees of these new investments to the GA global network:

TASC - U.S.
We completed the $1.6 billion buyout of TASC, a leading technology and consulting services business which primarily serves the U.S. intelligence agencies. We believe that the U.S. government and related agencies will continue to invest heavily in next generation satellite and surveillance technologies to better enable military, terrorism, and homeland security initiatives.

Quality Technology Services - U.S.
We made a $150 million investment in Quality Technology Services ("QTS"), a premier provider of high end data center infrastructure. As mid size and large companies seek to rationalize their own data centers and capitalize on "cloud computing," we expect QTS to be uniquely positioned to provide the necessary environment for highly flexible, scalable, secure solutions.

Alibaba Group - China
Alibaba Group is the primary owner of three of the most unique internet properties in China. Alibaba.com enables Chinese manufacturers and exporters access to customers around the world to sell goods and services. Taobao is one of the fastest growing ecommerce sites and enables merchants and consumers to buy and sell goods online. Alipay is one of the leading internet payment engines in China and currently processes over $40 billion a year in transactions.

Gilt Groupe - U.S.
We completed a $43 million* investment in the Gilt Groupe, a leading ecommerce merchant that sells excess inventory for many of the leading fashion brands in the world. Through its unique membership-only model, the company has expanded its offering into other categories including home goods and travel. The company is also introducing its ecommerce solution in selected international markets.

Despite a number of longer term macroeconomic concerns we enter the year cautiously optimistic. We continue to have a positive view on the emerging economies and capital markets in China, India and Brazil, where we have an established presence and strong pipeline of investment opportunities. Our companies are well-capitalized and well-positioned to take advantage of m&a opportunities as they arise. We wish our global network of colleagues, advisors and friends all the very best for 2010.

*GA and Matrix