1. ProsperChina™ Quarterly Prosper understandsconsumers around the world. The ProsperChina™ Quarterly provides insights on over 19,000 Chinese consumers between the ages of 18 and 54, with a primary focus on upwardly mobile 18-34 year old consumers. This segment represents an estimated population of 360 million, with 184 million being men. This group of digitally connected consumers is a large market for luxury brands with a high potential for sales in other markets. The 23rd series of the ProsperChina™ Quarterly reveals how the financial outlook, lifestyle, and media consumption of these young Chinese consumers compares to that of American consumers of the same age group. 400 W. Wilson Bridge Road I Suite 200 I Worthington, Ohio 43085 I614.846.0146 I www.prosperchina.com

2. About the ProsperChina™ Quarterly: Introduction: ProsperChina™ market intelligence provides unique consumer insights that are gathered online utilizing large sample sizes. The ProsperChina™ Quarterly Surveys monitor the pulse of more than 19,000 Chinese consumers ages 18-54. The surveys are conducted online and they cover purchase behaviors, brand preferences, purchase intentions, media consumption, simultaneous media usage, and media influence on purchases. The data is available with its own Excel based software that allows for unlimited cross-tabs. This report is derived from the following ProsperChina™ and BIGresearch® Surveys: ProsperChina™ Quarterly Survey 15: 1st Quarter, 2009 (N=7,326) ProsperChina™ Quarterly Survey 16: 2nd Quarter, 2009 (N=12,056) ProsperChina™ Quarterly Survey 17: 3rd Quarter, 2009 (N=15,168) ProsperChina™ Quarterly Survey 18: 4th Quarter, 2009 (N= 16,582) ProsperChina™ Quarterly Survey 19: 1st Quarter, 2010 (N=16,915) ProsperChina™ Quarterly Survey 20: 2nd Quarter, 2010 (N=18,089) ProsperChina™ Quarterly Survey 21: 3rd Quarter, 2010 (N=26,059) ProsperChina™ Quarterly Survey 22: 4th Quarter, 2010 (N=19,402) ProsperChina™ Quarterly Survey 23: 1st Quarter, 2011 (N=19,051) BIGresearch® Simultaneous Media Usage Survey®, SIMM® 17: December 2010 (N=24,754) BIGresearch® Consumer Intentions & Actions® (CIA®) Survey: March 2011 (N=8,491) Cross-tabs utilized in this report (unless otherwise noted): 18-34 Chinese Consumers: 18-34 year old respondents to the ProsperChina™Quarterly surveys. 35-54 Chinese Consumers: 35-54 year old respondents to the ProsperChina™ Quarterly surveys. 18-34 American Consumers: 18-34 year old American consumers responding to the BIGresearch® CIA and/or SIMM17 surveys.

3. ProsperChina™ Quarterly: = + Consumers are like a puzzle… complex and fragmented… Prosper brings the pieces together. Prosper

4. Flash Overview: Chinese Consumer Confidence: Confidence in the economy among 18-34 Chinese consumers improves 8.3% quarter-over-quarter. Employment Environment: In Q1 2011 the employment outlook also improves with fewer 18-34 Chinese Consumers anticipating more layoffs than at present over the next six months. Consumer Finances: With the improvement in economic confidence, confidence in personal financial situations improves quarter-over-quarter as well. Practicality: While over half of 18-34 Chinese Consumers remain practical in their purchases, practicality is down both quarter-over-quarter and year-over-year. Auto Market: Of those planning to buy a new car/truck within the next six months, Audi, Volkswagen, BMW, Buick and Honda are top brands being considered. Simultaneous Media Usage: Being avid users of media, young Chinese Consumers are likely to use multiple forms of media at a time. Influence to Purchase: Media influence is key to increasing ROI in China. Key differences exist when it comes to influencing Chinese and American electronics and grocery purchases. Sources: ProsperChina™ Quarterly Survey Q1 2011

5. Consumer Confidence: Quarter-over-quarter, confidence in the economy among 18-34 year old Chinese Consumers improves 8.3% with 62.2% indicating they are confident/very confident in chances for a strong economy in the next 6 months vs. 57.4% in Q4 2010. Year-over-year, however, confidence is down 7%. Despite this decline, 18-34 Chinese Consumers remain more confident than their 18-34 American counterparts as only 40.6% are confident or very confident in the chances for a strong U.S. economy. Sources: ProsperChina™ Quarterly Survey Q1 2010, Q4 2010, Q1 2011BIGresearch® CIA® Survey, March 2011

6. Stock Market: Though up slightly quarter-over-quarter, confidence in the Chinese stock market is down year-over-year. Quarter-over-quarter, the percentage of 18-34 Chinese Consumers who are confident/very confident in the stock market is up 1.7%. Year-over-year, the decline is 8.1% Sources: ProsperChina™ Quarterly Surveys Q1 2009 – Q1 2011

7. Employment Outlook: Quarter-over-quarter the employment outlook improves, with fewer 18-34 Chinese Consumers (31.5% vs. 37.5% in Q4 2010) anticipating more layoffs over the next six months than at present. Year-over-year, however, the employment outlook is more dismal, as only 24.6% were anticipating more layoffs in Q1 2010. One issue contributing to the fluctuating employment outlook are new college graduates who are chasing too few jobs. This group, dubbed “Ants” represent the vast pool of educated Chinese youth whose academic qualifications don’t match up with what the job market needs. Competition is so fierce that 30% of graduates of prestigious universities, in fields such as medicine, engineering and management are ready to work for very low salaries.* In the U.S. 26.1% are anticipating more layoffs than at present in the next 6 months. Sources: Sinha, Kunal. “Chinese ‘Ants’ Struggle to Find Work.” 26 January 2011. Sources: ProsperChina™ Quarterly Surveys Q1 2009 – Q1 2011 BIGresearch® CIA® Survey, March 2011

8. Consumer Finances: With the quarter-over-quarter improvement in consumer confidence, confidence in personal financial situations improves quarter-over-quarter as well. In Q1 2011, 12.6% indicate they are “worse off” financially compared to last year, down from the 16.9% who said the same in Q4 2010. 38.7%, up from 37.2% in Q4 feel they are “better off” in Q1 2011 compared to this time last year. 48.8% feel their financial strength is the same as last year. Sources: ProsperChina™ Quarterly Surveys Q1 2010 – Q1 2011

9. Consumer Savings: Perhaps reflected in their overall more positive feelings toward their personal financial situations, a greater percentage of 18-34 Chinese Consumers are planning to save more than they did last year. However, the majority does not agree that they are saving enough to meet their future needs. How do you feel about this statement: “I am saving enough to meet my future needs.” Strongly Agree: 6.1% Agree: 18.9% Uncertain: 27.9% Disagree: 29.3% Strongly Disagree: 17.9% Sources: ProsperChina™ Quarterly Surveys Q1 2009 – Q1 2011

10. Consumer Lifestyle Changes: While over half of 18-34 Chinese Consumers remain focused on practicality in Q1 2011, focus on practicality in purchasing is down both quarter-over-quarter and year-over-year. Though 18-34 Chinese Consumers are more focused on practicality in purchasing than their American counterparts, they are less focused on needs over wants and are less budget conscious. Though down slightly quarter-over-quarter, more than 4 in 10 18-34 Chinese Consumers indicate they have become more conscious about food safety. Sources: ProsperChina™ Quarterly Surveys Q1 2010, Q4 2010 & Q1 2011 BIGresearch® CIA® Survey, March 2011

11. 90 Day Outlook: According to the Diffusion Index (those planning to spend less in the next 90 days subtracted from those planning to spend more), the outlook for most retail categories declines both quarter-over-quarter and year-over-year. Quarter-over-quarter, the outlook for Sporting Goods, CDs/DVDs/Videos/Books, Groceries and Lawn and Garden Supplies is up. Year-over-year, the spending outlook is up in Children‘s Clothing, Women's’ Dress and Casual Clothing, Toys, Electronics and Linens/Bedding. Sources: ProsperChina™ Quarterly Surveys Q1 2010, Q4 2010 & Q1 2011

12. Apparel Purchases: Rising steadily over the past two years, more than 1 in 4 18-34 Chinese Consumers indicates newest trends and styles are important to them when it comes to fashion. 2 in 3 young Chinese Consumers also say that familiar labels are important to them when buying clothing. However, the majority (56.8%) say they usually buy clothing when it’s on sale, suggesting that young Chinese Consumers look for the right brands, and the right bargains. China, however, is expected to surpass the U.S. to become the world’s second largest consumer of luxury goods in the coming decade, and perhaps within the next five years.* 66.7% of 18-34 Chinese Consumers say familiar labels are important to them when buying clothing. Clothing Shopping Strategy:18-34 Chinese Consumers “Sales are not important to me when I buy clothing.” – 37.3% “I usually buy clothing when it’s on sale.” – 56.8% “I only buy clothing when it’s on sale.” – 5.9% Source: Reuter, Chloe. “Five Tips for Luxury Marketers in China.” Advertising Age. 26 January 2011. Sources: ProsperChina™ Quarterly Surveys Q1 2009 – Q1 2011

13. Chinese Auto Market: Car ownership among 18-34 Chinese Consumers has been on the rise in recent years, and is up 16.3% year-over-year. In 2010, auto sales in China hit a global record. Up 32.3% to 18.06 million vehicles, China was the world’s biggest market for auto sales, including passenger cars, trucks and buses according to the China Association of Automobile Manufacturers. These stats far outstrip the 11.5 million vehicles sold in the U.S. for the second consecutive year. Analysts note, however, that China will probably record the first negative year-on-year auto sales growth in 20 years in 2011 due to ending tax and subsidy policies that will heavily impact sales of small cars.* Among 18-34 Chinese Car Owners in Q1 2011, 28.5% indicate they drive a Chinese vehicle most often, while 30.6% drive European models and 17.3% drive U.S. models. What is the make of the car, truck or SUV you drive most often?18-34 Chinese Car Owners Q1 2011 Chinese: 28.5% Japanese: 16.6% European: 30.6% Korean: 5.1% American: 17.3% *Source: Madden, Normandy. “China Auto Sales Hit Global Record in 2010.” Ad Age China. 12 January 2011. Sources: ProsperChina™ Quarterly Surveys Q1 2009 – Q1 2011

14. Chinese Auto Market: In Q1 2011, the percentage of 18-34 Chinese Consumers planning to buy/lease a car or truck within the next 6 months rose slightly, up 5.2% quarter-over-quarter though down by 4.9% year-over-year. After hitting a record high in December 2010 as buyers flocked to cash in on expiring tax incentives, auto sales in China saw their slowest growth rate in two years in February 2011. In March 2011, auto sales rebounded slightly but still lagged far below the year-earlier pace. The China Association for Automobile Manufacturers said that sales rose 5.4% from 2010 in March, noting that the growth rate contracted by 50 percentage points compared with a year earlier. Several factors, including a surge in oil prices, the withdrawal of government incentives and the Japanese earthquake's impact on vehicle production contributed to the slower growth.* Of 18-34 Chinese Consumers planning to buy/lease in the next 6 months, the top five brands being considered are Audi (11.2%), Volkswagen (7.9%), BMW (7.1%), Buick (6.4%) and Honda (6.3%). What brand of vehicle are you considering? TOP FIVE Q1 201118-34 Chinese Consumers Planning to Buy/Lease in the Next 6 Months Audi: 11.2% Volkswagen: 7.9% BMW: 7.1% Buick: 6.4% Honda: 6.3% *Source: Madden, Normandy. “China Auto Sales Hit Global Record in 2010.” Ad Age China. 12 January 2011.Zhang, Yajun. “Auto Sales Climb in China.” The Wall Street Journal. 11 April 2011. Sources: ProsperChina™ Quarterly Surveys Q1 2009 – Q1 2011

15. Chinese Auto Market: Of 18-34 Chinese Consumers who’ve purchased a vehicle in the past 6 months, top reasons include wanting a vehicle with better safety features (22.6%), wanting a vehicle with better gas mileage (20.6%), needing another car for their family (20.6%), liking the style of the new models (20.2%) and seeing financing deals/incentives that were too good to pass up (19.6%). Source: ProsperChina™ Quarterly Survey Q1 2011

16. Mobile Market: 94.7% of 18-34 Chinese Consumers have a cell phone, and of the small percentage that do not, over half are planning to buy one. Despite the high percentage of cell phone ownership, approximately 4 in 10 18-34 Chinese Consumers are planning on buying a new cell phone in the next 90 days. Of those planning to buy, caller ID, address books, cameras, blue tooth capabilities and calendars are important features to look for in a new cell phone. Internet/Web Access is also a top feature that is looked for in a new phone among 18-34 Chinese Consumers. In China, more consumers own mobile phones than PCs, quickly making cell phones the primary Internet connection tool in China. With Internet usage growing, the cell phone, not the PC, is the new computer in China.* *Source: Sagami, Tony. “One Company That Should Rake in 4G Cell Phone Profits.” Uncommon Wisdom. 5, January 2011 Sources: ProsperChina™ Quarterly Survey Q1 2010, Q4 2010 & Q1 2011

17. Mobile Devices: More than 9 in 10 18-34 Chinese Consumers regularly or occasionally use cell phones, compared to 81.4% of 18-34 American Consumers. Looking at specific types of smartphones, 1 in 3 18-34 Chinese Consumers regularly or occasionally uses an iPhone or Droid/Android phone, while 28.3% uses a BlackBerry and 23.3% uses a Palm Pre. 1 in 4 also regularly or occasionally use eReaders such as the Kindle and Sony Reader, while 3 in 10 use an iPad. Sources: ProsperChina™ Quarterly Survey, Q1 2011 BIGresearch® SIMM® Survey, December 2010

18. Mobile Devices: 18-34 Chinese Consumers are more likely to regularly or occasionally take pictures/video, send text messages and view news, sports and video/TV on their cell phones than 18-34 American Consumers. More than 9 in 10 young Chinese Consumers regularly or occasionally instant message online and send text messages via their cell phones, suggesting these communication methods are widely used among young consumers in China. Sources: ProsperChina™ Quarterly Survey, Q1 2011 BIGresearch® SIMM® Survey, December 2010

20. However, purchase deferrals are up slightly for Entertainment and Home Improvement purchases, suggesting these may be areas where 18-34 Chinese Consumers maintain their practical focus.Sources: ProsperChina™ Quarterly Surveys Q1 2009 – Q1 2011

22. Further, 36.2% of 18-34 Chinese Consumers regularly take vacation trips, traveling 2 or more times a year. Another 54.7% occasionally (once a year or less often) take vacation trips.

23. It is estimated that China will become the world’s largest inbound and outbound tourist market within five to seven years, with 54 million Chinese traveling abroad and China receiving 53 million foreign visitors in 2010. According to the China Tourism Academy, China will become the largest source of international tourists, with 100-130 million visitors traveling to foreign countries where they will spend an estimated $150 billion.*How often to you take vacation trips?18-34 Chinese ConsumersQ1 2011 Regularly (2 or more times a year): 36.2% Occasionally (Once a year or less): 54.7% Never: 9.1% *Source: Madden, Normandy. “China Will Become No. 1 Tourist Market Within Seven Years.” Ad Age China. 26 January 2011. Sources: ProsperChina™ Quarterly Surveys Q1 2009 – Q1 2011

25. 3 in 4 18-34 Chinese Consumers use Baidu.com most often when searching online and are likely to be doing so from their mobile phone, which for many Chinese Consumers serves as their primary access to the Internet.

26. The product categories that are most likely to be researched online prior to being purchased in store are Apparel, Shoes, Electronics, Appliances and Beauty Care & Cosmetics.75.4% of 18-34 Chinese Consumers use Baidu.com most often when searching online Top Five Products Researched Online in the last 90 Days Before Being Purchased In-Store 18-34 Chinese Consumers 1. Apparel: 52.1% 2. Shoes: 34.2%3. Electronics: 34.0% 4. Appliances: 32.0%5. Beauty Care & Cosmetics: 31.2% Sources: ProsperChina™ Quarterly Survey, Q1 2011 BIGresearch® SIMM® Survey, December 2010

27. Online Shopping: In addition to researching products online, 18-34 Chinese Consumers are likely to make online purchases, with 94.9% indicating they regularly or occasionally do so. When it comes to shopping online, 57.4% say that an easy to use website is very important when shopping online. Flexible return policies (56.9%), low prices (46.7%) and free shipping (46.8%) are also very important to 18-34 Chinese Consumers when shopping online. The ability to pick up or return their purchases in store is also important to 3 in 10 young Chinese Consumers. Sources: ProsperChina™ Quarterly Survey Q1 2011

28. Simultaneous Media Usage: As in the United States, simultaneous media usage is prevalent in China, making it essential to have a consumer integrated strategy when targeting young Chinese Consumers. When reading magazines, both 18-34 Chinese Consumers and 18-34 American Consumers are likely to listen to the radio and watch TV. When watching TV, young Chinese Consumers are more likely than young Americans to be listening to the radio, reading magazines or reading the newspaper. Sources: ProsperChina™ Quarterly Survey Q1 2011 BIGresearch® SIMM® Survey, December 2010

29. Media Influence: Media influence is key to increasing advertising ROI in China as the country is one of the toughest places for foreign brands to succeed. Successful marketers must understand that media influence varies by both the target consumer and the retail category. For 18-34 Chinese Consumers, Electronics purchases are influenced by TV/Broadcasts (28.2%), coupons (22.6%) and reading an article on a product (21.9%), while in store promotion (45.6%) and word of mouth (44.6%) are most likely to influence these purchases among 18-34 American Consumers. TV Broadcasts (26.5%) are most likely to influence grocery purchases among 18-34 Chinese Consumers, while coupons (57.5%) are most likely to do so among 18-34 American consumers. Sources: ProsperChina™ Quarterly Survey, Q1 2011 BIGresearch® SIMM® Survey, December 2010

30. China Market Overview: 18-34 vs. 35-54 year olds 62.2% of 18-34 year olds are confident/very confident in the chances for a strong Chinese economy in the next six months, vs. 60.8% of 35-54 year olds. 56.2% of 18-34 year olds are confident/very confident in the stock market indicating they would definitely/probably invest vs. 64.3% of 35-54 year olds. 31.5% of 18-34 Chinese Consumers fear more layoffs than at present over the next 6 months vs. 30.4% of 35-54 year olds. 38.7% of 18-34 year olds indicate they are “better off” this year compared to last year when it comes to their personal finances vs. 28.9% of 35-54 year olds. 55.2% of 18-34 consumers are being more practical and realistic in their purchases vs. 53.7% of those 35-54. 30.6% of 18-34 consumers are focused on being more environmentally responsible in their daily lives compared to 40.8% of 35-54 year olds. Sources: ProsperChina™ Quarterly Survey Q1 2011

32. 37.3% of young Chinese consumers indicate sales are not important when buying clothing vs. 36.6% of 35-54 year olds.

33. 26.1% of 18-34 year olds say the newest trends and styles are important to them when it comes to fashion vs. 21.9% of those 35-54.

34. 41.5% of 18-34 year olds are planning on buying a new cell phone in the next 90 days, compared to 47.4% of those 35-54.

35. 15.4% of 18-34 year olds shop at Walmart most often for groceries vs. 12.6% of 35-54 year olds.Sources: ProsperChina™ Quarterly Survey Q1 2011

36. About ProsperChina™ & BIGresearch®: ProsperChina™ market intelligence provides unique consumer insights through online surveys. The ProsperChina™ Quarterly monitors the purchasing behavior and media consumption of more than 19,000 Chinese consumers ages 18-54, with a primary focus on 18-34 year olds. The recently expanded ProsperChina™ Quarterly includes more detail and greater insights on shopping habits and media consumption. The ProsperChina™ Quarterly is available in report or database format. The BIGresearch® U.S. studies include the monthly Consumer Intentions and Actions®(CIA®) Survey which monitors the pulse of more than 8,000 consumers. The CIA® delivers fresh, demand-based information on where the retail consumer is shopping and their changing behavior. Unlike indicators based on past performance, this data brings intelligence on where the retail consumer is going, their intentions and actions. BIGresearch®also conducts the Simultaneous Media Survey®(SIMM®) which monitors over 15,000 consumers twice a year.The BIGresearch®methodology provides the most accurate consumer information in the industry. Complimentary findings are available atwww.bigresearch.com Disclaimer of Warranties: ProsperChina™ is a trademark of Prosper Business Development Corp. Services are delivered by Prosper and/or a Prosper affiliated company (“Prosper”). Prosper makes no warranties, either expressed or implied, concerning: data gathered or obtained from any source; the present or future methodology employed in producing ProsperChina™ statistics; or the ProsperChina™ data and estimates represent only the opinion of Prosper and reliance thereon and use thereof shall be at the user’s own risk.