Hoover's IPO Scorecard Reveals Increasing Decline In New Offerings For 2008

Number Of U.S. IPOs In Third Quarter Decreased 87% From 2007, Reflecting Economic Slowdown

For Immediate Release

AUSTIN Texas - October 8, 2008 - Hoover's Inc. (http://www.hoovers.com) today announced the number of U.S. initial public offerings (IPOs) decreased 87% for Q2 2008 compared to the same quarter a year ago, as revealed in Hoover's IPO Scorecard (http://www.hoovers.com/ipo/scorecard). This follows on the heels of Q2 2008, which saw a 77% decline in IPOs compared to Q2 2007. The first quarter of 2008 ushered in a 73% decline in IPOs compared to Q1 2007.

"The IPO market is as bad as we've seen since 2003, and the ongoing troubles of the U.S. financial sector aren't making conditions any friendlier for IPO aspirants and their underwriters," said Tim Walker, Hoover's industry expert and author of the Business Insight Zone.

In Q3 2008, only five companies went public on the major U.S. stock exchanges, raising $917 million, compared to Q3 2007 when 38 companies went public, raising $11.2 billion.

Findings from Hoover's IPO Scorecard for the Third Quarter 2008:

• Best First-Day Gain:Energy Recovery, Inc. 16%
• Worst First-Day Drop:Rackspace Hosting, inc. -20%
• The economy didn't stop a handful of consumer plays from throwing their hats into the IPO ring in Q3 2008. Dave & Busters filed for an IPO in July, while Dr. Tattoff, Inc. (tattoo removal) filed to go public in August. Mead Johnson Nutrition Co. (maker of Enfamil and other nutritional products for infants and children) filed for a $1 billion IPO in September.
• On the energy front, Rio Tinto subsidiary Cloud Peak Energy Inc. (coal mining and processing) filed in August to raise $1 billion in an IPO.

"Any company coming to the IPO market wants to feel sure that it can get a favorable hearing from potential investors," continued Walker. "If you're Google or Visa, your brand ensures you'll get that hearing. But if you're anybody else - even a billion-dollar arm of an existing business that wants to spin off - you're gambling right now that the week of your debut won't be a market roller-coaster."

IPOs for Q3:

	Offer	Q3 Close	Return
Energy Recovery, Inc.	$8.50	$9.06	7%
Rackspace Hosting, Inc.	$12.50	$8.51	-32%
China Mass Media International Advertising Corp.	$6.80	$4.50	-34%
GT Solar International, Inc.	$16.50	$10.05	-39%
China Distance Education Holdings Limited	$7.00	$3.75	-46%

Hoover's delivers comprehensive insight and analysis about more than 28 million private and public companies worldwide, as well as information about industries and the people you need to know. Hoover's analyzes the IPO market daily to produce the quarterly IPO Scorecard. Each IPO Scorecard includes an assortment of facts selected by Hoover's editors, including the best- and worst-performing IPOs, biggest one-day jumps and drops in the first day of trading, and a breakdown of IPOs by industry sector.

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Hoover's, a D&B company, provides its customers insightful information about companies, industries and key decision makers, along with the powerful tools to find and connect to the right people to get business done. Hoover's provides this information for sales, marketing, business development, and other professionals who need intelligence on U.S. and global companies, industries, and the people who lead them. Hoover's unique combination of editorial expertise and one-of-a-kind data collection with user-generated and company-supplied content gives customers a 360-degree view and competitive edge. This information, along with powerful tools to search, sort, download and integrate the content, is available through Hoover's (http://www.hoovers.com), the company's premier online service. Hoover's is headquartered in Austin, Texas.

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