Established in April 1996 and acquired by Cantor Fitzgerald, LP in May 2001, HSX is a leading virtual stock market and research company. Our flagship product, Hollywood Stock Exchange has registered over 1.6 million Traders, been recognized by Forbes Magazine as a Best of the Web winner and has been the subject of numerous academic studies. As the longest continuously operating commercial prediction market, HSX is a recognizable brand on the web and is noted for its prowess in predicting the box office success of movies. Virtual markets aggregate the knowledge of groups, thereby providing more reliable conclusions and solutions than any one individual could. HSX's predictions have consistently been a reliable gauge of the future success of a film. In fact, in the New York Times, Harvard Professor Anita Elberse called a film's HSX trading price prior to opening "a more accurate indicator of how movie will do than any other single measure." HSX Movie Market® The HSX Movie Market provides data culled from trading on HSX to numerous major motion picture studios, advertising agencies and other clients. HSX is the first commercial enterprise to use a virtual stock market as a data gathering tool in practice; and has built a viable research business. Well before the concept of prediction markets became popular in the main steam, HSX was already operating and functioning as the pioneering example of this methodology in action. HSX Virtual Specialist HSX's entertainment stock market (www.HSX.com) utilizing our Virtual Specialist trading engine operates under the same principles of buying and selling employed by real stock markets. For example, Movies are issued MovieStocks® and accredited film celebrities are issued StarBonds®. HSX also issues calls, puts and special warrants surrounding opening weekends and other notable events within the entertainment industry. In June 1999, HSX launched MSX, its Music Market®, utilizing the same Virtual Specialist technology that powers the Movie Market®. MSX featured musicians, bands and albums as its securities. In September 1999, HSX received its patent for the Virtual Specialist, a CDA (continuous double action) market-maker that matches buy/sell orders and generates a market price. The Virtual Specialist responds to any imbalance in the matching of buy and sell orders and thereby maintaining market equilibrium. With over ten years experience designing and operating Exchanges, HSX has developed a diverse product line including tournament style predictive polling mechanisms as part of our virtual market solutions. In December 2002, HSX partnered with Fuse Networks, a division of Rainbow-media, to form the Interactive Music Exchange (IMX). IMX used HSX's Virtual Specialist technology applied to music and videos which then operated as the basis for Fuse's IMX TV show, which broadcasted live five nights a week. This innovative application was awarded an AFI Enhanced TV Award for leading edge interactive content. Product Outreach In June of 2005, HSX formally launched a white label virtual market software solution, aptly named the Virtual Specialist®. HSX's Virtual Specialist integrates content with online and mobile participation, into an unrivaled interactive experience. When the BET network aired its reality show The Ultimate Hustler, HSX built the tie-in game to go with the show. HSX has also built virtual markets for the pharmaceutical, user-generated video and storage technology industries. With experience in entertainment, life sciences and data storage and collection, HSX has unrivaled expertise in the administration of virtual stock markets.