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England and Wales		7375		98-0200628
(State or other jurisdiction of incorporation or organization)		(Primary Standard Industrial Classification Code Number)		(IRS Employer Identification Number)

Maximum

Proposed Maximum

Amount to be

Offering Price

Aggregate Offering

Amount of

Title of Each Class of Securities to be Registered

Registered(1)

Per Share(2)

Price

Registration Fee

Ordinary Shares, par value 1p per share(3)

26,209,496

$7.12

$186,611,612

$21,964

Ordinary Shares, par value 1p per share(3)(4)

7,025,000

$7.12

$50,018,000

$5,887

Total Registration Fee

$27,851(5)

(1)	In accordance with Rule 416(a), the Registrant is also registering hereunder an indeterminate number of additional shares of common stock that shall be issuable pursuant to Rule 416 to prevent dilution resulting from stock splits, stock dividends or similar transactions.
(2)	Estimated pursuant to Rule 457(c) of the Securities Act of 1933, as amended, solely for the purpose of computing the amount of the registration fee based on the average of the high and low sales prices of the ordinary shares traded in the form of Global Depositary Receipts, or GDRs, as reported by the Frankfurt Stock Exchange in Germany on September 15, 2005. For purposes of this calculation the sales price of the GDRs is converted into U.S. dollars at an exchange rate of €0.81413 per $1.00, which is based on the average bid and ask currency exchange price as reported by OANDA on September 15, 2005.
(3)	Consists of ordinary shares that are to be offered and sold in the form of American Depositary Shares, or ADSs, by the selling shareholders identified in this prospectus and any prospectus supplement. The ADSs, each representing one ordinary share, evidenced by American Depositary Receipts, or ADRs, upon deposit of the ordinary shares registered hereby, are being registered under a separate registration statement on Form F-6.
(4)	Represents shares of the Registrant’s ordinary shares being registered for resale that have been or may be acquired upon the exercise of warrants or options issued to the selling stockholders named in this prospectus and any prospectus supplement.
(5)	Previously paid. Pursuant to Rule 457(p), the registration fee was partially offset by a previously paid filing fee of $12,670 paid in connection with the filing on August 4, 2004 by MatchNet, Inc. of a registration statement on Form S-1 (file number 333-117940). In addition, $15,210 was also previously paid.

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The information in this prospectus is not complete and may be changed. The selling shareholders may not sell these securities until the Securities and Exchange Commission declares our registration statement effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

•		The selling shareholders identified in this prospectus and any prospectus supplement are offering 33,234,496 ordinary shares in the form of American Depositary Shares, or ADSs. Each ADS represents the right to receive one ordinary share. We will not receive any proceeds from the sale of our shares by the selling shareholders, except for funds received from the exercise of warrants and options held by selling shareholders, if and when exercised.
•		No public market for our ordinary shares or ADSs currently exists in the United States of America.
•		Our ordinary shares in the form of Global Depositary Shares, or GDSs, currently trade on the Frankfurt Stock Exchange under the symbol “MHJG.” The last reported sales price of the GDSs on the Frankfurt Stock Exchange on November 3, 2005 was €5.65 per GDS, or $6.86 per GDS.
•		Proposed trading symbol for the ADSs: American Stock Exchange — LOV.

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Prospectus Summary			1
Risk Factors			6
Cautionary Statement Regarding Forward-Looking Statements			29
Use Of Proceeds			31
Rescission Offer			31
Price Range Of Global Depositary Share			33
Dividend Policy			33
Capitalization			34
Dilution			35
Selected Consolidated Financial Data			36
Pro Forma Combined Financial Data			39
Management’s Discussion And Analysis Of Financial Condition And Results Of Operations			41
Business			66
Management			75
Certain Relationships And Related Transactions			85
Principal And Selling Shareholders			86
Description Of Share Capital			93
Shares Eligible For Future Sale			108
Plan Of Distribution			110
Taxation			112
Legal Matters			119
Experts			119
Where You Can Find More Information			120
Index To Consolidated Financial Statements			F-1
Information Not Required In This Prospectus			II-1
Exhibit 4.3
Exhibit 10.10
Exhibit 10.10(a)
EX-23.1
EX-23.2

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	•	Increasing our base of members in the United States and internationally through consistent and targeted marketing efforts and geographic expansion. We define a member as an individual who has posted a personal profile during the immediately preceding 12 months or an individual who has previously posted a personal profile and has subsequently logged on to one of our Web sites at least once in the preceding 12 months. Members may or may not be paying subscribers which we define as individuals who have paid a monthly fee for access to communication and Web site features beyond those provided to our members. Accordingly, the number of members we have at any given time may not directly affect our revenue.
	•	Increasing the number of our members who become paying subscribers by offering improved technology and communications features and by utilizing our strong customer service focus.
	•	Extending into new vertical affinity markets that we believe will be receptive to paid online personals and are large enough to enable us to attain enough paying subscribers sufficient to support an online community. We view vertical affinity markets as identifiable groups of people who share common interests and the desire to meet companions or dates with similar interests, backgrounds or traits.

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ADSs offered by selling shareholders		33,234,496 ADSs(1)
Total ordinary shares outstanding after the offering, including ordinary shares underlying ADSs and GDSs		26,209,496 Ordinary Shares(2)
Use of Proceeds		We will not receive any of the net proceeds from the sale of shares by the selling shareholders. See “Use of Proceeds.”
Proposed American Stock Exchange symbol		LOV

(1)	Consists of 26,209,496 ordinary shares, 6,595,000 ordinary shares underlying options and 430,000 ordinary shares underlying warrants. The ordinary shares are to be offered and sold in the form of American Depositary Shares, or ADSs. The ADSs, each representing one ordinary share, evidenced by American Depositary Receipts, or ADRs, upon deposit of the ordinary shares registered hereby, are being registered under a separate registration statement on Form F-6.
(2)	The total number of ordinary shares to be outstanding immediately after this offering is based on 26,209,496 ordinary shares outstanding as of October 19, 2005. This information excludes:

	•	8,760,688 ordinary shares issuable upon the exercise of outstanding options as of October 19, 2005, with exercise prices ranging from $0.88 to $9.44 per share and a weighted average exercise price of $3.96 per share;
	•	430,000 ordinary shares issuable upon the exercise of warrants outstanding as of October 19, 2005, with an exercise price an exercise price of $2.49 per share; and
	•	14,372,562 ordinary shares available for issuance under our share option schemes.

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																Six months ended
				Year ended December 31,(1)												June 30,(1)
				2002				2003				2004				2004				2005
																(unaudited)				(unaudited)
				(in thousands, except per share and paying subscriber data)
Consolidated Statements of Operations Data:
Net revenues				$	16,352			$	36,941			$	65,052			$	30,862			$	$31,990
Direct marketing expenses					5,396				18,395				31,240				15,864				11,279
	Contribution margin				10,956				18,546				33,812				14,998				20,711
Operating expenses:
	Indirect marketing				403				907				2,451				1,051				503
	Customer service				1,207				2,536				3,379				1,878				1,137
	Technical operations				1,587				4,341				7,162				3,318				2,950
	Product development				603				959				2,013				871				1,890
	General and administrative (excluding share-based compensation)(2)				7,996				16,885				27,727				12,078				12,512
	Share-based compensation				—				1,871				1,704				2,401				(28	)
	Amortization of goodwill and intangible assets				524				555				860				482				411
	Impairment of long-lived assets and goodwill				—				1,532				208				—				—
		Total operating expenses			12,320				29,586				45,504				22,079				19,375
Operating income (loss)					(1,364	)			(11,040	)			(11,692	)			(7,081	)			1,336
Interest (income) and other expenses, net					(840	)			(188	)			(66	)			32				144
(Loss) income before income taxes					(524	)			(10,852	)			(11,626	)			(7,113	)			1,192
Provision for income taxes					—				—				1				1				64
Net (loss) income				$	(524	)		$	(10,852	)		$	(11,627	)		$	(7,114	)		$	1,128
Net (loss) income per share — basic and diluted(3)				$	(0.03	)		$	(0.57	)		$	(0.51	)		$	(0.33	)		$	0.04
Weighted average shares outstanding — basic(3)					18,460				18,970				22,667				21,521				25,389
Weighted average shares outstanding — diluted(3)																					29,080
Other Financial Data:
Depreciation				$	874			$	1,441			$	3,065			$	1,369			$	1,767
Additional Information:
Average paying subscribers(4)					58,700				125,800				226,100				217,900				219,200

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		December 31,
														June 30,
		2002				2003				2004				2005
Consolidated Balance Sheet Data:
Cash, cash equivalents and marketable securities		$	7,755			$	5,815			$	7,423			$	8,292
Total assets			17,461				16,969				27,359				41,485
Deferred revenue			1,535				3,232				3,933				3,925
Capital lease obligations and notes payable			—				487				1,873				11,978
Total liabilities			3,998				11,659				16,872				26,340
Shares subject to rescission(5)			—				—				3,819				3,819
Accumulated deficit			(21,156	)			(32,008	)			(43,635	)			(42,507	)
Total shareholders’ equity			13,463				5,310				6,668				11,326

(1)	Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a discussion of certain asset and business acquisitions.
(2)	In 2004, general and administrative expenses included an expense of approximately $2.4 million related to an employee severance, $2.1 million related to the United States initial public offering of MatchNet, Inc. that was planned for mid-2004, but which was withdrawn shortly after the related registration statement was filed in the third quarter of 2004, as well as one legal settlement resulting in the recognition of $900,000 in expenses in the third quarter and two legal settlements resulting in the recognition of $2.1 million in expenses in the fourth quarter of 2004. In 2003, general and administrative expenses included a charge of $1.7 million primarily related to a settlement with Comdisco.
(3)	For information regarding the computation of per share amounts, refer to note 1 of our consolidated financial statements.
(4)	Average paying subscribers for each month are calculated as the sum of the paying subscribers at the beginning and the end of the month, divided by two. Average paying subscribers for periods longer than one month are calculated as the sum of the average paying subscribers for each month, divided by the number of months in such period. Additionally, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a discussion of other business metrics we use to evaluate our business.
(5)	Under our 2000 Executive Share Option Scheme (“2000 Option Scheme”), we granted options to purchase ordinary shares to certain of our employees, directors and consultants. The issuances of securities upon exercise of options granted under our 2000 Option Scheme may not have been exempt from registration and qualification under federal and California state securities laws, and as a result, we may have potential liability to those employees, directors and consultants to whom we issued securities upon the exercise of these options. In order to address that issue, we may elect to make a rescission offer to those persons who exercised all, or a portion, of those options and continue to hold the shares issued upon exercise, to give them the opportunity to rescind the issuance of those shares. However, the staff of the Securities and Exchange Commission is of the opinion that a rescission offer will not bar or extinguish any liability under the Securities Act of 1933 with respect to these options and shares, nor will a rescission offer extinguish a holder’s right to rescind the issuance of securities that were not registered or exempt from the registration requirements under the Securities Act of 1933. As of June 30, 2005, assuming every eligible person that continues to hold the securities issued upon exercise of options granted under the 2000 Option Scheme were to accept a rescission offer, we estimate the total cost to us to complete the rescission would be approximately $3.8 million including statutory interest at 7% per annum, accrued since the date of exercise of the options. The rescission acquisition price is calculated as equal to the original exercise price paid by the optionee to our company upon exercise of their option.

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	•	the size and diversity of our member and paying subscriber bases;
	•	the timing and market acceptance of our products and services, including the developments and enhancements to those products and services relative to those offered by our competitors;
	•	customer service and support efforts;
	•	selling and marketing efforts; and
	•	our brand strength in the marketplace relative to our competitors.

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	•	competition from pre-existing competitors with significantly stronger brand recognition in the markets we enter;
	•	our improper evaluations of the potential of such markets;
	•	diversion of capital and other valuable resources away from our core business and other opportunities that are potentially more profitable; and
	•	weakening our current brands by over expansion into too many new markets.

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	•	the need to implement or remediate controls, procedures and policies of acquired companies that lacked appropriate controls, procedures and policies prior to the acquisition;
	•	diversion of management time and focus from operating our business to acquisition integration challenges;
	•	cultural challenges associated with integrating employees from an acquired company into our organization;

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	•	retaining employees from the businesses we acquire; and
	•	the need to integrate each company’s accounting, management information, human resource and other administrative systems to permit effective management.

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	•	the demand for, and acceptance of, our online personals services and enhancements to these services;
	•	the timing and amount of our subscription revenues;
	•	the introduction, development, timing, competitive pricing and market acceptance of our Web sites and services and those of our competitors;

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	•	the magnitude and timing of marketing initiatives and capital expenditures relating to expansion of our operations;
	•	the cost and timing of online and offline advertising and other marketing efforts;
	•	the maintenance and development of relationships with portals, search engines, ISPs and other Web properties and other entities capable of attracting potential members and paying subscribers to our Web sites;
	•	technical difficulties, system failures, system security breaches, or downtime of the Internet, in general, or of our products and services, in particular;
	•	costs related to any acquisitions or dispositions of technologies or businesses; and
	•	general economic conditions, as well as those specific to the Internet, online personals and related industries.

	•	challenges caused by distance, language and cultural differences;
	•	local competitors with substantially greater brand recognition, more users and more traffic than we have;
	•	our need to create and increase our brand recognition and improve our marketing efforts internationally and build strong relationships with local affiliates;

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	•	longer payment cycles in some countries;
	•	credit risk and higher levels of payment fraud in some countries;
	•	different legal and regulatory restrictions among jurisdictions;
	•	political, social and economic instability;
	•	potentially adverse tax consequences; and
	•	higher costs associated with doing business internationally.

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	•	you may not be able to participate in rights offers or dividend alternatives if, in the discretion of the depositary, after consultation with us, it is unlawful or not practicable to do so;
	•	you may not receive certain copies of reports and information sent by us to the depositary and may have to go to the office of the depositary to inspect any reports issued;
	•	the deposit agreement may be amended by us and the depositary, or may be terminated by us or the depositary, each with thirty (30) days notice to you and without your consent in a manner that could prejudice your rights, and the deposit agreement limits our obligations and liabilities and those of the depositary.

	•	that it did not have jurisdiction; and/or
	•	that it was not the appropriate forum for such proceedings; and/or
	•	that, applying English conflict of laws rules, U.S. law (including U.S. securities laws) did not apply to the relationship between you and us or our directors and officers; and/or
	•	that the U.S. securities laws were of a public or penal nature and should not be enforced by the English court.

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	•	effect service of process within the United States upon such directors and experts; or
	•	enforce in U.S. courts judgments obtained against such directors and experts in the U.S. courts in any action, including actions under the civil liability provisions of U.S. securities laws; or
	•	enforce in U.S. courts judgments obtained against such directors and experts in courts of jurisdictions outside the United States in any action, including actions under the civil liability provisions of U.S. securities laws.

	•	that the judgment is final and conclusive;
	•	that the U.S. court had jurisdiction (as a matter of English law);
	•	that the U.S. judgment is not impeachable for fraud and is not contrary to English rules of natural justice;

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	•	that the enforcement of the judgment will not be contrary to public policy or statute in England;
	•	that the judgment is for a liquidated sum;
	•	that the English proceedings were commenced within the relevant limitation period;
	•	that the judgment is not directly or indirectly for the payment of taxes or other charges of a like nature or a fine or penalty;
	•	that the judgment remains valid and enforceable in the court in which it was obtained unless and until it is stayed or set aside; and
	•	that, before the date on which the U.S. court gave judgment, the issues in question had not been the subject of a final judgment of an English court or of a court of another jurisdiction whose judgment is enforceable in England.

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	•	our significant operating losses and uncertainties relating to our ability to generate positive cash flow and operating profits in the future;
	•	difficulty in evaluating our future prospects based on our limited operating history and relatively new business model;
	•	our ability to attract members, convert members into paying subscribers and retain our paying subscribers, in addition to maintain paying subscribers;
	•	the highly competitive nature of our business;
	•	our ability to keep pace with rapid technological change;
	•	the strength of our existing brands and our ability to maintain and enhance those brands;
	•	our ability to effectively manage our growth;
	•	our dependence upon the telecommunications infrastructure and our networking hardware and software infrastructure;
	•	risks related to our recent accounting restatements;
	•	uncertainties relating to potential acquisitions of companies;
	•	the volatility of the price of our ADSs after this offering;
	•	the strain on our resources and management team of being a public company in the United States;
	•	the ability of our principal shareholders to exercise significant influence over our company; and
	•	other factors referenced in this prospectus and other reports.

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•	the relevant contract to purchase the Option Shares (the “Contract”) must be approved in advance by a shareholder resolution (the “Resolution”) approved by at least 75% of the votes cast on the Resolution, excluding votes carried by the Option Shares to which the Resolution relates;
•	a copy of the Contract (including the names of the shareholders who will be party to the Contract) must be available for inspection by our shareholders for at least 15 days prior to the date of the shareholder meeting at which the Resolution is proposed and at the meeting itself; and
•	requirements following the purchase of the Option Shares as to public disclosure and inspection of the Contract and certain information relating to the purchase.

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			High								Low
Year ended December 31, 2003
	First Quarter		€	1.73			$	1.85			€	1.36			$	1.45
	Second Quarter		€	1.79			$	2.10			€	1.55			$	1.69
	Third Quarter		€	4.05			$	4.53			€	1.60			$	1.85
	Fourth Quarter		€	5.05			$	6.31			€	2.85			$	3.37
Year ended December 31, 2004
	First Quarter		€	11.85			$	14.68			€	4.20			$	5.39
	Second Quarter		€	9.85			$	11.79			€	6.30			$	7.63
	Third Quarter		€	8.00			$	9.62			€	2.85			$	3.49
	Fourth Quarter		€	7.33			$	9.68			€	4.75			$	6.06
Year ended December 31, 2005
	First Quarter		€	8.25			$	10.66			€	6.16			$	8.02
	Second Quarter		€	8.00			$	10.37			€	5.26			$	6.47
	Third Quarter		€	7.50			$	9.28			€	5.25			$	6.85
	Fourth Quarter (through November 3, 2005)		€	6.29			$	7.50			€	5.46			$	6.66

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					June 30, 2005
					(in thousands
					except per share
					data)
Notes payable, including current portion					$	11,775
Other liabilities						203
Shares subject to rescission						3,819
Shareholders’ equity:
	Ordinary shares, £0.01 par value, 80,000,000 shares authorized; 25,901,160 shares issued and outstanding					426
	Additional paid-in-capital					53,921
	Deferred share-based compensation					(41	)
	Accumulated other comprehensive loss					(270	)
	Notes receivable from employees					(203	)
	Accumulated deficit					(42,507	)
		Total shareholders’ equity				11,326
			Total capitalization		$	41,485

	•	8,949,000 ordinary shares issuable upon the exercise of outstanding options as of June 30, 2005, with exercise prices ranging from $0.90 to $9.54 per share and a weighted average exercise price of $3.97 per share;
	•	530,000 ordinary shares issuable upon the exercise of warrants outstanding as of June 30 2005, with an exercise price of $2.52 per share; and
	•	15,072,500 ordinary shares available for issuance under our share option schemes.

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																								Six months ended
				Year ended December 31,(1)																				June 30,(1)
				2000				2001				2002				2003				2004				2004				2005
				(unaudited)																				(unaudited)
				(in thousands, except per share data and paying subscriber data)
Consolidated Statements of Operations Data:
Net revenues				$	6,670			$	10,434			$	16,352			$	36,941			$	65,052			$	30,862			$	31,990
Direct marketing expenses					5,257				2,044				5,396				18,395				31,240				15,864				11,279
		Contribution margin			1,413				8,390				10,956				18,546				33,812				14,998				20,711
Operating expenses:
	Indirect marketing				953				540				403				907				2,451				1,051				503
	Customer service				402				641				1,207				2,536				3,379				1,878				1,137
	Technical operations				628				1,772				1,587				4,341				7,162				3,318				2,950
	Product development				138				359				603				959				2,013				871				1,890
	General and administrative (excluding share-based compensation) (2)				6,215				5,496				7,996				16,885				27,727				12,078				12,512
	Share-based compensation				—				—				—				1,871				1,704				2,401				(28	)
	Amortization of intangible assets other than goodwill				1,127				2,137				524				555				860				482				411

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																								Six months ended
				Year ended December 31,(1)																				June 30,(1)
				2000				2001				2002				2003				2004				2004				2005
				(unaudited)																				(unaudited)
				(in thousands, except per share data and paying subscriber data)
	Impairment of long-lived assets				—				3,997				—				1,532				208				—				—
		Total operating expenses			9,463				14,942				12,320				29,586				45,504				22,079				19,375
Operating income (loss)					(8,050	)			(6,552	)			(1,364	)			(11,040	)			(11,692	)			(7,081	)			1,336
Interest (income) and other expenses, net					1,113				1,627				(840	)			(188	)			(66	)			32				144
(Loss) income before income taxes					(9,163	)			(8,179	)			(524	)			(10,852	)			(11,626	)			(7,113	)			1,192
Provision for income taxes					—				—				—				—				1				1				64
Net (loss) income				$	(9,163	)		$	(8,179	)		$	(524	)		$	(10,852	)		$	(11,627	)		$	(7,114	)		$	1,128
Net (loss) income per share — basic and diluted(3)				$	(0.69	)		$	(0.47	)		$	(0.03	)		$	(0.57	)		$	(0.51	)		$	(0.33	)			0.04
Weighted average shares outstanding — basic(3)					13,213				17,460				18,460				18,970				22,667				21,521				25,389
Weighted average shares outstanding — diluted(3)																													29,080
Other Financial Data:
Depreciation				$	160			$	544			$	874			$	1,441			$	3,065			$	1,369			$	1,767
Additional Information:
Average paying subscribers(4)													58,700				125,800				226,100				217,900				219,200

		December 31,
																						June 30,
		2000				2001				2002				2003				2004				2005
		(unaudited)																				(unaudited)
Consolidated Balance Sheet Data:
Cash, cash equivalents and marketable securities		$	11,410			$	7,569			$	7,755			$	5,815			$	7,423			$	8,292
Total assets			23,409				16,352				17,461				16,969				27,359				41,485
Deferred revenue			362				993				1,535				3,232				3,933				3,925
Capital lease obligations and notes payable			—				—				—				487				1,873				—
Total liabilities			6,156				3,238				3,998				11,659				16,872				26,340
Shares subject to rescission (5)			—				—				—				3,819				—				3,819
Accumulated deficit			(12,453	)			(20,632	)			(21,156	)			(32,008	)			(43,635	)			(42,507	)
Total shareholders’ equity			17,253				13,114				13,463				5,310				6,668				11,326

(1)	Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a discussion of certain asset and business acquisitions.
(2)	In 2004, general and administrative expenses included an expense of approximately $2.4 million related to an employee severance, $2.1 million related to the United States initial public offering of MatchNet, Inc. that was planned for mid-2004, but which was withdrawn shortly after the related registration statement was filed in the third quarter of 2004, as well as one legal settlement resulting in the recognition of $900,000 in expenses in the third quarter and two legal settlements resulting in the recognition of $2.1 million in expenses in the fourth quarter of 2004. In 2003, general and administrative expenses included a charge of $1.7 million primarily related to a settlement with Comdisco.
(3)	For information regarding the computation of per share amounts, refer to note 1 of our consolidated financial statements.
(4)	Average paying subscribers for each month are calculated as the sum of the paying subscribers at the beginning and the end of the month, divided by two. Average paying subscribers for periods longer than one month are calculated as the sum of the average paying subscribers for each month, divided by the number of months in such period. Additionally, refer to

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	“Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a discussion of business metrics we use to evaluate our business. We did not track data for the years ended December 31, 2000 and 2001 sufficient to accurately set forth the number of average paying subscribers for the respective periods.
(5)	Under our 2000 Executive Share Option Scheme (“2000 Option Scheme”), we granted options to purchase ordinary shares to certain of our employees, directors and consultants. The issuances of securities upon exercise of options granted under our 2000 Option Scheme may not have been exempt from registration and qualification under federal and California state securities laws, and as a result, we may have potential liability to those employees, directors and consultants to whom we issued securities upon the exercise of these options. In order to address that issue, we may elect to make a rescission offer to those persons who exercised all, or a portion, of those options and continue to hold the shares issued upon exercise, to give them the opportunity to rescind the issuance of those shares. However, it is the Securities and Exchange Commission’s position that a rescission offer will not bar or extinguish any liability under the Securities Act of 1933 with respect to these options and shares, nor will a rescission offer extinguish a holder’s right to rescind the issuance of securities that were not registered or exempt from the registration requirements under the Securities Act of 1933. As of August 31, 2005, assuming every eligible person that continues to hold the securities issued upon exercise of options granted under the 2000 Option Scheme were to accept a rescission offer, we estimate the total cost to us to complete the rescission would be approximately $3.8 million including statutory interest at 7% per annum, accrued since the date of exercise of the options. The rescission acquisition price is calculated as equal to the original exercise price paid by the optionee to our company upon exercise of their option.

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				Year ended December 31, 2004																Six Months ended June 30, 2005
				Spark				Mingle				Pro Forma				Pro Forma				Spark				Mingle				Pro Forma				Pro Forma
				Networks				Match				Adjustments				Combined				Networks				Match				Adjustments				Combined
				(in thousands except per share amounts)																(in thousands except per share amounts)
Net revenues				$	65,052			$	2,504			$	—			$	67,556			$	31,990			$	1,453			$	—			$	33,443
Direct marketing expenses					31,240				1,432								32,672				11,279				741								12,020
	Contribution margin				33,812				1,072								34,884				20,711				712								21,423
Operating expenses:
	Indirect marketing				2,451				54								2,505				503				79								582
	Customer service				3,379				100								3,479				1,137				147								1,284
	Technical operations				7,162				353								7,515				2,950				350								3,300
	Product development				2,013				77								2,090				1,890				113								2,003
	General and administrative (excluding share-based compensation)				27,727				947								28,674				12,512				986								13,498
	Share-based compensation				1,704				—								1,704				(28	)			—								(28	)
	Amortization of intangible assets other than goodwill				860				4				1,197	(1)			2,061				411				2				313	(1)			726
	Impairment of long lived assets				208				—								208				—				—								—
		Total operating expenses			45,504				1,535				1,197				48,236				19,375				1,677				313				21,365
Operating (loss) income					(11,692	)			(463	)			(1,197	)			(13,352	)			1,336				(965	)			(313	)			58
Interest (income) and other expenses, net					(66	)			(20	)							(86	)			144				(209	)							(65	)
Pre-tax (loss) income					(11,626	)			(443	)			(1,197	)			(13,266	)			1,192				(756	)			(313	)			123
Income taxes					1				—								1				64				—								64
Net (loss) income				$	(11,627	)		$	(443	)		$	(1,197	)		$	(13,267	)		$	1,128			$	(756	)		$	(313	)		$	59

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		Year ended December 31, 2004																Six Months ended June 30, 2005
		Spark				Mingle				Pro Forma				Pro Forma				Spark				Mingle				Pro Forma				Pro Forma
		Networks				Match				Adjustments				Consolidated				Networks				Match				Adjustments				Consolidated
		(in thousands except per share amounts)																(in thousands except per share amounts)
Net (loss) income per ordinary share — basic		$	(0.51	)										$	(0.58	)		$	0.04											$	0.00
Net (loss) income per ordinary share — diluted		$	(0.51	)										$	(0.58	)		$	0.04											$	0.00
Weighted average ordinary shares outstanding — basic			22,667								150				22,817				25,389												25,389
Weighted average ordinary shares outstanding — diluted			22,667								150				22,817				29,080												29,080

(1)	Represents the amortization of intangible assets that would have occurred if the purchase had happened on January 1, 2004. Calculated as follows:

		Year Ended				Stub Period Ending
		December 31, 2004				May 18, 2005
Domain Names		$	786			$	297
Subscriber Databases			370				—
Developed Software			41				16
Total Amortization		$	1,197			$	313

			As of May 19, 2005
			(in thousands)
Current assets (including cash acquired of $221)			$	295
Property and equipment, net				162
Goodwill				8,172
Domain names and databases				4,655
	Total assets acquired			13,284
Current liabilities				41
	Net assets acquired		$	13,243

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	•	In May 2005, we acquired MingleMatch, Inc., a company that operates religious, ethnic, special interest and geographically targeted online singles communities. The acquisition of MingleMatch fits with our strategy of creating affinity-focused online personals that provide quality experiences for our members. We expect that our purchase of MingleMatch will allow for numerous cost savings and revenue synergies. Expected cost savings include savings from cost reductions in customer service and marketing, where we plan to be able to market to existing members of our other Web sites, particularly AmericanSingles. Expected revenue synergies include cross-promotion and bundled subscription opportunities with members of our other Web sites, particularly AmericanSingles.
	•	In September 2004, we purchased a 20% equity interest, with an option to acquire the remaining interest, in Duplo AB, an online provider of social networking products and services in Sweden, with the intent of expanding into new markets and strengthening our existing brands.
	•	In January 2004, we purchased Point Match Ltd., a competitor of JDate.co.il in Israel.

	•	continued acceptance of online personals services;
	•	our ability to attract a large number of new members and paying subscribers, and retain those members and paying subscribers;
	•	our ability to increase brand awareness, both domestically and internationally;
	•	our ability to sustain and, when possible, increase subscription fees for our services; and
	•	our ability to introduce new targeted Web sites, affiliate programs, fee-based services and advertising as additional sources of revenues.

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	•	Cost per subscription (CPS) where we pay an online advertising provider a fee based upon the number of new paying subscribers that it generates;
	•	Cost per acquisition (CPA) where we pay an online advertising provider a fee based on the number of new member registrations it generates;
	•	Cost per click (CPC) where we pay an online advertising provider a fee based on the number of clicks to our Web sites it generates; and
	•	Cost per thousand for banner advertising (CPM) where we pay an online advertising provider a fee based on the number of times it displays our advertisements.

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	•	a significant decline in actual projected revenue;
	•	a significant decline in the market value of our depositary shares;
	•	a significant decline in performance of certain acquired companies relative to our original projections;
	•	an excess of our net book value over our market value;
	•	a significant decline in our operating results relative to our operating forecasts;
	•	a significant change in the manner of our use of acquired assets or the strategy for our overall business;
	•	a significant decrease in the market value of an asset;

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	•	a shift in technology demands and development; and
	•	a significant turnover in key management or other personnel.

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																Six months ended
				Year ended December 31,												June 30,
				2002				2003				2004				2004				2005
				(in thousands)
Net Revenues:
	JDate			$	8,372			$	16,091			$	23,820			$	11,597			$	12,703
	AmericanSingles				6,644				19,253				35,224				17,255				15,353
	Other Businesses				1,336				1,597				6,008				2,010				3,934
		Total		$	16,352			$	36,941			$	65,052			$	30,862			$	31,990
Direct Marketing Expenses:
	JDate			$	224			$	739			$	1,740			$	697			$	1,208
	AmericanSingles				3,970				15,887				24,954				13,394				7,570
	Other Businesses				1,202				1,769				4,546				1,773				2,501
		Total		$	5,396			$	18,395			$	31,240			$	15,864			$	11,279
Contribution:
	JDate			$	8,148			$	15,352			$	22,080			$	10,900			$	11,495
	AmericanSingles				2,674				3,366				10,270				3,861				7,783
	Other Businesses				134				(172	)			1,462				237				1,433
		Total		$	10,956			$	18,546			$	33,812			$	14,998			$	20,711

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	•	Average Paying Subscribers: Paying subscribers are defined as individuals who have paid a monthly fee for access to communication and Web site features beyond those provided to our members. Average paying subscribers for each month are calculated as the sum of the paying subscribers at the beginning and the end of the month, divided by two. Average paying subscribers for periods longer than one month are calculated as the sum of the average paying subscribers for each month, divided by the number of months in such period.
	•	Average Monthly Net Revenue per Paying Subscriber: Average monthly net revenue per paying subscriber represents the total net subscriber revenue for the period divided by the number of average paying subscribers for the period, divided by the number of months in the period.
	•	Direct Subscriber Acquisition Cost: Direct subscriber acquisition cost is defined as total direct marketing costs divided by the number of new paying subscribers during the period. This represents the average cost of acquiring a new paying subscriber during the period.
	•	Monthly Subscriber Churn: Monthly subscriber churn represents the ratio expressed as a percentage of (i) the number of paying subscriber cancellations during the period divided by the number of average paying subscribers during the period and (ii) the number of months in the period.

															Six months ended
			Year ended December 31,												June 30,
			2002				2003				2004				2004				2005
Average Paying Subscribers (in thousands):
	JDate			27.7				50.7				69.8				71.2				69.3
	AmericanSingles			29.5				71.5				132.5				129.9				115.3
	Other Businesses			1.5				3.6				23.8				16.8				34.6
	Total			58.7				125.8				226.1				217.9				219.2
Average Monthly Net Revenue per Paying Subscriber:
	JDate		$	25.20			$	26.44			$	28.42			$	27.14			$	30.56
	AmericanSingles			18.77				22.43				22.16				22.60				22.19
	Other Businesses			33.17				23.72				16.75				15.36				18.11
	All Segments			22.17				24.09				23.53				23.52				24.19

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															Six months ended
			Year ended December 31,												June 30,
			2002				2003				2004				2004				2005
Direct Subscriber Acquisition Cost:
	JDate		$	2.90			$	4.39			$	8.09			$	6.43			$	11.30
	AmericanSingles			38.68				45.70				43.29				44.40				32.68
	Other Businesses			78.43				80.32				34.74				32.10				34.64
	All Segments			25.56				33.84				33.85				34.13				27.35
Monthly Subscriber Churn:
	JDate			18.2	%			22.4	%			25.8	%			25.9	%			26.2	%
	AmericanSingles			24.3				32.1				35.6				35.7				36.8
	Other Businesses			32.6				33.4				26.8				40.1				23.6
	All Segments			21.6				28.2				31.7				32.0				31.2

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																Six months ended
				Year ended December 31,												June 30,
				2002				2003				2004				2004				2005
Consolidated Statements of Operations Data:
Net revenues					100.0	%			100.0	%			100.0	%			100.0	%			100.0	%
Direct marketing expenses					33.0				49.8				48.0				51.4				35.3
	Contribution margin				67.0				50.2				52.0				48.6				64.7
Operating expenses:
	Indirect marketing				2.5				2.5				3.8				3.4				1.6
	Customer service				7.4				6.9				5.2				6.1				3.6
	Technical operations				9.7				11.7				11.0				10.8				9.2
	Product development				3.7				2.6				3.1				2.8				5.9
	General and administrative (excluding share-based compensation)				48.8				45.7				42.7				39.1				39.1
	Share-based compensation				0.0				5.1				2.6				7.8				(0.1	)
	Amortization of intangible assets other than goodwill				3.2				1.5				1.3				1.6				1.3
	Impairment of long-lived assets and goodwill				0.0				4.1				0.3				0.0				0.0
		Total operating expenses			75.3				80.1				70.0				71.6				60.6
Operating loss					(8.3	)			(29.9	)			(18.0	)			(23.0	)			4.1
Interest (income) and other expenses, net					(5.1	)			(0.5	)			(0.1	)			0.1				0.5
(Loss) income before income taxes					(3.2	)			(29.4	)			(17.9	)			(23.1	)			3.6
Provision for income taxes					0.0				0.0				0.0				—				0.2
Net (loss) income					(3.2	)%			(29.4	)%			(17.9	)%			(23.1	)%			3.4	%

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					Three months ended(1)
					Mar 31,				Jun 30,				Sep 30,				Dec 31,				Mar 31,				Jun 30,				Sep 30,				Dec 31,				Mar 31,				Jun 30,
					2003(2)				2003(2)				2003(2)				2003				2004				2004				2004				2004				2005				2005
																																					(unaudited)				(unaudited)
Consolidated Statements of Operations Data:
Net revenues					$	7,036			$	8,423			$	9,792			$	11,690			$	15,050			$	15,812			$	17,138			$	17,052			$	16,526			$	15,464
Direct marketing expenses						3,576				4,680				3,955				6,184				6,539				9,325				8,748				6,628				5,228				6,051
		Contribution margin				3,460				3,743				5,837				5,506				8,511				6,487				8,390				10,424				11,298				9,413
Operating expenses:
	Indirect marketing					(61	)			131				488				349				529				522				881				519				265				238
	Customer service					563				458				736				779				975				903				723				778				577				560
	Technical operations					819				994				1,024				1,504				1,344				1,974				1,861				1,983				1,402				1,548
	Product development					168				229				82				480				340				531				505				637				830				1,060
	General and administrative (excluding share-based compensation)					2,483				2,628				6,025				5,749				6,383				5,695				8,469				7,180				5,992				6,520
	Share-based compensation					—				—				—				1,871				1,712				689				(1,239	)			542				87				(115	)
	Amortization of intangible assets other than goodwill					131				58				200				166				244				238				188				190				110				301
	Impairment of long-lived assets					—				—				—				1,532				—				—				—				208				—				—
			Total operating expenses			4,103				4,498				8,555				12,430				11,527				10,552				11,388				12,037				9,263				10,112
Income (loss) from operations						(643	)			(755	)			(2,718	)			(6,924	)			(3,016	)			(4,065	)			(2,998	)			(1,613	)			2,035				(699	)
Interest (income) and other expenses, net						(53	)			(57	)			(22	)			(56	)			4				28				(46	)			(52	)			24				168
Income (loss) before income taxes						(590	)			(698	)			(2,696	)			(6,868	)			(3,020	)			(4,093	)			(2,952	)			(1,561	)			2,059				(867	)
Income taxes						1				39				—				(40	)			1				—				—				—				72				(8	)
Net income (loss)					$	(591	)		$	(737	)		$	(2,696	)		$	(6,828	)		$	(3,021	)		$	(4,093	)		$	(2,952	)		$	(1,561	)		$	1,987			$	(859	)

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		Three months ended(1)
		Mar 31,				Jun 30,				Sep 30,				Dec 31,				Mar 31,				Jun 30,				Sep 30,				Dec 31,				Mar 31,				Jun 30,
		2003(2)				2003(2)				2003(2)				2003				2004				2004				2004				2004				2005				2005
																																		(unaudited)				(unaudited)
Net income (loss) per share — basic(3)		$	(0.03	)		$	(0.04	)		$	(0.14	)		$	(0.35	)		$	(0.14	)		$	(0.18	)		$	(0.13	)		$	(0.06	)		$	0.08			$	(0.03	)
Net income (loss) per share — diluted																																		$	0.07
Weighted average shares outstanding — basic(3)			18,707				18,736				18,960				19,449				21,286				22,264				23,356				24,234				25,117				25,661
Weighted average shares outstanding — diluted(3)																																			29,236
Other Financial Data
Depreciation		$	287			$	333			$	405			$	416			$	579			$	790			$	839			$	857			$	848			$	919
Additional Information:
Average Paying Subscribers(4)			94,700				118,000				130,700				160,000				207,400				228,400				239,600				229,000				222,600				215,600
Average monthly net revenue per paying subscriber(5)		$	24.50			$	23.55			$	24.20			$	24.14			$	23.83			$	22.74			$	23.50			$	24.06			$	24.32			$	23.12
Subscriber churn(6)			27.9	%			28.9	%			29.6	%			26.8	%			32.1	%			30.6	%			31.6	%			32.4	%			31.7	%			30.8	%
Average direct subscriber acquisition cost(7)		$	33.49			$	38.38			$	31.32			$	32.69			$	27.82			$	40.53			$	37.41			$	29.37			$	23.84			$	31.11

(1)	Certain financial information for prior periods has been reclassified to conform to the 2004 periods’ presentation.
(2)	These amounts in consolidated statements of operations data are restated amounts from amounts contained in previously filed quarterly reports with the Frankfurt Stock Exchange. See “Risk Factors — We Face Risks Related to Our Recent Accounting Restatements.”
(3)	For information regarding the computation of per share amounts, refer to note 1 of our consolidated financial statements.
(4)	Represents average paying subscribers calculated as the sum of the average paying subscribers for each month, divided by the number of months. Average paying subscribers for each month are calculated as the sum of the paying subscribers at the beginning and end of the month, divided by two.
(5)	Represents the total net subscriber revenue for the period divided by the number of average paying subscribers for the period, divided by the number of months in the period.
(6)	Represents the ratio expressed as a percentage of (i) the number of paying subscriber cancellations during the period divided by the number of average paying subscribers during the period and (ii) the number of months in the period. On a monthly basis, the average number of paying subscribers is calculated as the sum of the paying subscribers at the beginning and end of the period divided by two.
(7)	Represents direct marketing expense divided by the gross number of subscribers added during the period. The historic direct subscriber acquisition cost we reported included indirect marketing costs.

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			Less than 1 year				1-3 years				4-5 years				More than 5 years				Total
			(in thousands)
Capital leases			$	173			$	—			$	—			$	—			$	173
Operating leases				711				674				—				—				1,385
Other commitments and obligations				1,217				1,708				—				—				2,925
	Total contractual obligations		$	2,101			$	2,382			$	—				—			$	4,483

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	•	Strength of JDate Brand. We believe that JDate and its strong brand recognition in the Jewish community is a valuable asset. A report by comScore Media Metrix for the first nine months of 2005 indicated that JDate.com experienced more average daily visitors and more page views than any other religious online personals service. We believe the strength of the JDate brand will continue to allow us to market to the Jewish community profitably while maintaining a high penetration rate. Because of the strength of the JDate brand, we are not required to spend as much on marketing JDate as we are our other Web sites, and other personals Web sites in the industry.
	•	Web Site Functionality. We continually evaluate the functionality of our Web sites to improve our members’ online personals experience. Many of the features that we offer, such as onsite emails, real-time chat rooms and instant messaging, increase the probability of communication between our members, which we believe increases the number and percentage of members who become paying subscribers. We believe this functionality drives return visits to our Web sites and helps retain paying subscribers who might otherwise consider switching to our competitors’ Web sites.
	•	Customer Service Focus. We believe that our customer service offers a competitive advantage and differentiates us from our major competitors. Our multi-lingual call center is staffed 24 hours a day, 7 days a week with customer service consultants. These consultants help members with such matters as completing personal profiles and choosing photos for their profiles, as well as answering questions about billing and technical issues. We believe that the quality of our customer service increases member satisfaction, which improves the number and percentage of members that become and remain paying subscribers.

	•	JDate.com. JDate was our first Web site and is dedicated to the Jewish community and culture, and those who are seeking to be part of it. A report by comScore Media Metrix for the first nine months of 2005 indicated that JDate.com experienced more average daily visitors and more page views than any other religious online personals service. JDate members are primarily concentrated in the New York, Los Angeles, Miami and Chicago metropolitan areas. The current fee for a one-month subscription on JDate is $34.95.

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	•	AmericanSingles.com. AmericanSingles is our mainstream U.S. online personals community, targeted at an audience of singles between the ages of 25 and 49. The Web site caters to singles of all races, ethnicities and interests. AmericanSingles members are primarily concentrated in major metropolitan areas across the United States. The current fee for a one-month subscription on AmericanSingles is $29.85.
	•	Other Web sites.

Web site		Target markets
AdventistSinglesConnection.com*		Adventist singles
AsianSinglesConnection.com*		Asian singles
BBWPersonalsPlus.com*		Big beautiful women and admirers
BlackSinglesConnection.com*		African American singles
CanadianPersonals.net*		Canadian singles
CatholicMingle.com*		Catholic singles
ChristianMingle.com*		Christian singles
CollegeLuv.com		College singles
Cupid.co.il		Jewish singles (Israel only)
Date.ca		Canadian singles
DeafSinglesConnection.com*		Deaf singles
FaceLink.com		Individuals wishing to share photographs
Glimpse.com		Gay, lesbian and transgender singles
GreekSinglesConnection.com*		Greek singles
IndianMatrimonialNetwork.com*		Indian singles
InterracialSingles.net*		Interracial singles
ItalianSinglesConnection.com*		Italian singles
JDate.co.il		Jewish singles (Israel only)
JewishMingle.com*		Jewish singles
LatinSinglesConnection.com*		Latin singles
LDSMingle.com*		Mormon singles
MatchNet.co.uk		UK singles
MatchNet.com.au		Australian singles
MatchNet.de		German singles
MilitarySinglesConnection.com*		Military singles
PrimeSingles.net*		Mature singles
SilverSingles.com		Aging baby boomers
SingleParentsMingle.com*		Single parents
UKSinglesConnection.com*		UK singles

*	Acquired through our acquisition of MingleMatch, Inc.

	•	On-site Email. We provide all paying subscribers with private message centers, dedicated exclusively to communications with other paying subscribers. These personal on-site email boxes offer features such as customizable folders for storing correspondence, the ability to know when sent messages were read, as well as block and ignore functions, which afford a paying subscriber the ability to control future messages from specific paying subscribers.

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	•	Hot Lists and Favorites. Among the most popular features on our Web sites, “Hot Lists” enable paying subscribers to see who’s interested in them and to save those favorite members that they are interested in. Lists include (1) who has viewed your profile, (2) your favorites and (3) who has emailed you. Paying subscribers can group their favorites into customized folders and add their own notes, including details included in a member’s profile.
	•	Real-time Chat Rooms. Paying subscribers can utilize our exclusive chat rooms to mix and mingle in real-time, building a sense of community through group discussions.
	•	Additional features enable users to add customized graphics such as emoticons to their conversations.
	•	Ice Breakers. Members can send pre-packaged opening remarks, referred to on the Web sites as “flirts” and “teases,” to other members or paying subscribers.
	•	Click!. Our patented Click! feature connects members who think they would be compatible with each other. A member simply clicks “yes,” “no” or “maybe” in another member’s profile. When two members click “yes” in each other’s profiles, our patented feature sends an email to both of them alerting them of a possible match.

	•	Integrated and targeted marketing. We believe that targeting potential members with consistent and compelling marketing messages, delivered through a broad mix of marketing channels, will be effective in driving more traffic and a higher percentage of relationship-oriented singles to our Web sites. We intend to use a variety of channels to build our brand and increase our base of subscribers including online and offline advertising customer relationship management tools, public relations, promotional alliances and special events.
	•	Geographic expansion. We plan to expand into new geographic markets where we can introduce one or more of our existing products in multiple languages. We believe that our recently introduced multi-currency payment system will aid the growth in our international subscriber base.
	•	Cross-Promote Into Vertical Affinity Markets. Our large base of members provides us with a significant amount of consumer data to evaluate cross-promotion opportunities for growth into vertical affinity markets such as those acquired in the MingleMatch acquisition. We are able to analyze different groups of members by key metrics such as total potential subscribers and average revenue per paying subscriber and identify those targeted groups that may prefer a service dedicated to their particular affinity groups. We

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		intend to target and cross-promote into vertical affinity markets that we believe are receptive to paid online personals and are large enough to attain a critical mass of members and paying subscribers.

	•	Improved technology. We believe that the more successful members are in finding matches in our database, the more likely they are to want to communicate with those members. To initiate email and instant message communication, members must become paying subscribers. We intend to continue to enhance our technology and the quality and relevance of our search results to provide fast, relevant suggestions.
	•	Leveraging strong customer service. Each time a member or potential member contacts our customer service center by email or phone, he or she represents a potential new paying subscriber to our services. By training our customer service representatives on upselling opportunities, we believe they will continue to be successful in selling and building loyalty to our subscription-based services.
	•	Improved member communications. We believe that enhanced member communications is a key component to growing our business. We continue to focus on improving and enhancing our Web site functionality and features to encourage communications between members. Most of these communications require that members become paying subscribers. We will also continue to inform members of new features and functions with the goal of increasing the number of visitors to our Web sites who become paying subscribers.

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Name		Age				Position
David E. Siminoff			41			President, Chief Executive Officer and Director
Joe Y. Shapira			51			Executive Chairman of the Board
Michael Brown			39			Director
Martial Chaillet			58			Director
Benjamin Derhy			51			Director
Laura Lauder			44			Director
Scott Shleifer			27			Director
Gregory R. Liberman			33			Chief Operating Officer, General Counsel and Company Secretary
Philip Nelson			41			Chief Technology Officer
Mark Thompson			44			Chief Financial Officer

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	•	The appointment, replacement, compensation, and oversight of work of the independent auditor, including resolution of disagreements between management and the independent auditor regarding financial reporting, for the purpose of preparing or issuing an audit report or performing other audit, review or attest services.
	•	Reviewing and discussing with management and the independent auditor various topics and events that may have significant financial impact on our company or that are the subject of discussions between management and the independent auditors.

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																			Long-Term
																			Compensation
							Annual Compensation
																			Securities
															Other Annual				Underlying				All Other
Name and Principal Position			Year				Salary				Bonus				Compensation(6)				Options				Compensation
David E. Siminoff(1)				2004			$	164,701			$	—			$	—				1,275,000			$	800	(7)
	President and Chief Executive Officer
Todd Tappin(2)				2004				185,261				—				—				1,200,000	(2)			112,891	(8)
	Former President and
	Chief Executive Officer
Joe Y. Shapira(3)				2004				370,207				—				20,000				—				12,645	(7)
	Executive Chairman			2003				528,000				1,372,000				20,000				—				14,000	(7)
	of the Board			2002				480,000				375,000				20,000				2,000,000				11,000	(7)
Alon Carmel(4)				2004				373,207				—				20,000				—				12,121	(7)
	Former Executive			2003				528,000				1,372,000				20,000				—				12,000	(7)
	Co-Chairman of the			2002				480,000				375,000				20,000				2,000,000				11,000	(7)
	Board
Michael Riddell				2004				184,207				—				—				25,000				8,105	(7)
	Executive Vice President,			2003				180,000				25,000				—				—				12,000	(7)
	New Product Development			2002				113,000				6,000				—				250,000				4,800	(7)
Peter Voutov(5)				2004				235,138				2,000				—				—				39,497	(9)
	Former Chief			2003				233,000				11,000				—				—				12,000	(7)
	Technology Officer			2002				214,000				—				—				100,000				11,000	(7)

(1)	Mr. Siminoff became our President and Chief Executive Officer in August 2004 and has served on the Board of Directors since March 2004.
(2)	Mr. Tappin resigned as our President and Chief Executive Officer in August 2004, a position he held since February 2004. Upon his resignation, Mr. Tappin forfeited all of his unvested options. Prior to this forfeiture, 218,281 of his options had vested.
(3)	Mr. Shapira served as our Chief Executive Officer in 2004, 2003 and 2002 and until he became Executive Co-Chairman in February 2004. Mr. Shapira became sole Executive Chairman in February 2005.
(4)	Mr. Carmel served as our President in 2003, 2002 and 2001 and became Executive Co-Chairman in February 2004. Mr. Carmel resigned as Executive Co-Chairman in February 2005.
(5)	Mr. Voutov resigned as our Chief Technology Officer in October 2004.
(6)	Represents an annual automobile allowance.
(7)	Represents the amount of our annual matching contribution to each individual’s 401(k) account.
(8)	Consists of $106,591 in severance and $6,300 in annual matching contribution to Mr. Tappin’s 401(k) account.
(9)	Consists of $31,250 in severance and $8,247 in annual matching contribution to Mr. Voutov’s 401(k) account.

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		Individual Grants																Potential Realizable
																		Value at Assumed
		Number of																Annual Rates of Stock
		Securities				Percent of												Price Appreciation
		Underlying				Total Options				Exercise or								for Option Term(4)
		Options				Granted to				Base Price				Expiration
Name		Granted				Employees(2)				Per Share(3)				Date				5%				10%
David E. Siminoff			300,000	(1)			5.8	%		$	9.55				03/15/09			$	791,547			$	1,749,111
			1,250,000				24.3				4.24				08/12/09				773,588				1,709,428
Todd Tappin			1,200,000	(5)			23.3				7.09				02/19/05	(6)			2,350,604	(7)			5,194,219	(7)
Joe Y. Shapira			—				—				—				—				—				—
Alon Carmel			—				—				—				—				—				—
Michael Riddell			25,000				0.5				9.34				07/08/09				64,512				142,554
Peter Voutov			—				—				—				—				—				—

(1)	Mr. Siminoff originally received options to purchase 300,000 ordinary shares and this grant was subsequently reduced to 25,000 ordinary shares by amendment when Mr. Siminoff became our President and Chief Executive Officer in August 2004.
(2)	The total number of options granted to our employees, excluding 160,000 shares underlying options granted to non-employee directors, during 2004 was 5,141,500 shares underlying options.
(3)	The exercise price per share of options granted represents the fair market value of the underlying shares on the date the options were granted.
(4)	In order to comply with the rules of the SEC, we are including the gains or “option spreads” that would exist for the respective options we granted to the Named Executive Officers. We calculated these gains by assuming an annual compound stock price appreciation of 5% and 10% from the date of the option grant until the termination date of the option. These gains do not represent our estimate or projection of the future price of the ordinary shares.
(5)	Upon his resignation as our President and Chief Executive Officer in August 2004, Mr. Tappin forfeited all of his unvested options. Prior to this forfeiture, 218,181 of his options had vested.
(6)	The option term of Mr. Tappin’s options accelerated upon his resignation as our President and Chief Executive Officer in August 2004.
(7)	Based on the original option term of five years.

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										Number of Securities								Value of Unexercised
		Shares								Underlying Unexercised								In-the-Money Options
		Acquired								Options at Fiscal Year-End								at Fiscal Year-End(3)
		on				Value
Name		Exercise(1)				Realized(2)				Exercisable				Un-exercisable				Exercisable				Un-exercisable
David E. Siminoff			—				—				25,000				1,250,000			$	—			$	5,904,940
Todd Tappin			—				—				218,181				—				413,452				—
Joe Y. Shapira			400,000				2,083,746				2,500,000				—				17,068,492				—
Alon Carmel			900,000				3,759,942				2,000,000				—				13,346,180				—
Michael Riddell			120,000				888,290				126,428				25,000				830,217				—
Peter Voutov			109,000				591,250				41,000				—				307,449				—

(1)	Shares acquired on exercise includes all shares underlying the share option or portion of the option exercised, without deducting shares held to satisfy tax obligations, if any, sold to pay the exercise price or otherwise disposed of.
(2)	The value realized of exercised options is the product of (a) the excess of the per share fair market value of the ordinary share on the date of exercise over the per share option exercise price and (b) the number of shares acquired upon exercise.
(3)	The value of unexercised “in-the-money” options is based on a price per share of $8.93, which was the price of a share as quoted on the Frankfurt Stock Exchange at the close of business on December 31, 2004, minus the exercise price, multiplied by the number of shares underlying the option.

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	(a)     Indemnification of directors in respect of proceedings brought by third parties (covering both legal costs and the financial costs of any adverse judgment, except for the legal costs of unsuccessful defenses of criminal proceedings, fines imposed in criminal proceedings and penalties imposed by certain regulatory bodies);
	(b)     Payment of directors’ defense costs as they are incurred, including if the action is brought by the company itself. A director in this situation would still be liable to pay any damages awarded to our company and to repay his defense costs to the company if his defense were unsuccessful, other than where the company chooses to indemnify him in respect of legal costs incurred in certain types of civil third party proceedings; and
	(c)     Indemnification of our officers who are not directors without the restrictions that apply to indemnification of directors.

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	•	each selling shareholder;
	•	each person or entity who we know beneficially owns more than 5% of our ordinary shares;
	•	each of our Named Executive Officers and each of our directors; and
	•	all of our executive officers and directors as a group.

														Ordinary Shares
		Ordinary Shares												Beneficially Owned
		Beneficially Owned Prior												After Completion of
		to the Offering								Number of				the Offering(1)
										Ordinary Shares
		Number of				Percentage				Registered for				Number of				Percentage
Name of Beneficial Owner		Shares				of Shares				Sale Hereby				Shares				of Shares
5% stockholders:
Tiger Global Management, L.L.C.(2)			6,631,085				25.3	%			6,631,085				—				—	%
Capital Research and Management Company (3)			2,505,000				9.6				2,505,000				—				—
Criterion Capital Management LLC(4)			3,341,337				12.7				3,341,337				—				—
FM Fund Management Limited(5)			2,201,890				8.4				2,201,890				—				—
Named Executive Officers and Directors:
David E. Siminoff(6)			1,887,000				6.9				1,887,000				—				—
Todd Tappin			—				*				—				—				—
Joe Y. Shapira(7)			4,512,639				15.9				4,512,639				—				—

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														Ordinary Shares
		Ordinary Shares												Beneficially Owned
		Beneficially Owned Prior												After Completion of
		to the Offering								Number of				the Offering(1)
										Ordinary Shares
		Number of				Percentage				Registered for				Number of				Percentage
Name of Beneficial Owner		Shares				of Shares				Sale Hereby				Shares				of Shares
Alon Carmel(8)			4,430,348				15.7				4,430,348				—				—	%
Michael Riddell			—				*				—				—				—
Peter Voutov			—				*				—				—				—
Scott Shleifer(9)			—				*				—				—				—
Michael Brown(10)			80,000				*				80,000				—				—
Benjamin Derhy(11)			80,000				*				80,000				—				—
Laura Lauder(12)			180,000				*				180,000				—				—
Martial Chaillet(13)			200,000				*				200,000				—				—
All directors and executives as a group (10 persons)(14)			7,689,639				25.0	%			7,689,639				—				—	%
Other Selling Shareholders:
Europlay Capital Advisors LLC(15)			447,741				1.7	%			447,741				—				—	%
Gregory R. Liberman(16)			250,000				*				250,000				—				—
Mark Thompson(17)			250,000				*				250,000				—				—
Philip Nelson(18)			250,000				*				250,000				—				—
Sherman Networks Ltd.(19)			200,000				*				200,000				—				—
EuroClear Bank			189,880				*				189,880				—				—
Alex Sandel			180,930				*				180,930				—				—
Jason Yair Barzilay			142,710				*				142,710				—				—
The Levy Family Trust of 1997 Dtd 7/10/98 Charles M. Levy & Lydia Levy TTEEs			96,776				*				96,776				—				—
Michael McCullough & Ana Rowen McCullough Comm. Prop			82,350				*				82,350				—				—
John B. Peterson(20)			75,000				*				75,000				—				—
Natalie N. Peterson(21)			75,000				*				75,000				—				—
ODL Securities Limited			50,000				*				50,000				—				—
Steamer Partners LP			46,000				*				46,000				—				—
Ursula Siekmann			40,000				*				40,000				—				—
Giesen GBR			30,000				*				30,000				—				—
Karen Coster			27,500				*				27,500				—				—
AE Recyber LLC			28,945				*				28,945				—				—
Brigitte Kandel			20,000				*				20,000				—				—
Dogmoch Group of Companies			20,000				*				20,000				—				—
Peter Kandel			20,000				*				20,000				—				—
Yaacov Metzler & Nancy Metzler JTWROS			20,000				*				20,000				—				—
OJDR Bear Stearns Int’l Ltd.			19,299				*				19,299				—				—
Patrick J. Ferrell			18,039				*				18,039				—				—
Douglas J. Hirsch TTEE of The Douglas Hirsch Living Trust			15,000				*				15,000				—				—

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														Ordinary Shares
		Ordinary Shares												Beneficially Owned
		Beneficially Owned Prior												After Completion of
		to the Offering								Number of				the Offering(1)
										Ordinary Shares
		Number of				Percentage				Registered for				Number of				Percentage
Name of Beneficial Owner		Shares				of Shares				Sale Hereby				Shares				of Shares
John Benjamin Peterson and Natalie Nicole Peterson(22)			13,188				*				13,188				—				—	%
David Martin			12,300				*				12,300				—				—
Gilmartin & Trevor, A Law Corporation			11,838				*				11,838				—				—
Dr. Eithan Ephrati			11,000				*				11,000				—				—
UBS Stm Cust UBS Ldn. Prop. Trad.			10,770				*				10,770				—				—
Christopher Kandel			10,000				*				10,000				—				—
Norman Agran			10,000				*				10,000				—				—
Steven G. Small			10,000				*				10,000				—				—
Christopher K. Harris			10,000				*				10,000				—				—
John J. Lucena Sole TTEE John J. Lucena Living Trust			10,000				*				10,000				—				—
Cortal Consors Germany			10,000				*				10,000				—				—
Reid Hoffman			9,478				*				9,478				—				—
Stefanie Giesen Anderle			9,000				*				9,000				—				—
Stephen Andrew Nichols			8,000				*				8,000				—				—
AE Recyber LLC			7,399				*				7,399				—				—
Barry J. Uphoff and Linda A. Uphoff JTWROS			7,000				*				7,000				—				—
Ron Kenan			6,500				*				6,500				—				—
Roger Filer			6,250				*				6,250				—				—
David Pomije			5,918				*				5,918				—				—
Bank of Jerusalem Ltd.			5,810				*				5,810				—				—
Henry C. McCullough & Dana McCullough JTWROS			5,500				*				5,500				—				—
Donna Raffaniello IRA R/ O			5,000				*				5,000				—				—
Trendline Capital LP			5,000				*				5,000				—				—
Brent Eric Wood			4,250				*				4,250				—				—
Greg Lahann			4,143				*				4,143				—				—
Barry J. Uphoff			4,100				*				4,100				—				—
Bruce Cunningham			4,034				*				4,034				—				—
Allen Blue			4,000				*				4,000				—				—
Chris Saccheri			4,000				*				4,000				—				—
David Cullinan			4,000				*				4,000				—				—
Lauren Jacobsen			4,000				*				4,000				—				—
Leslie Grant			4,000				*				4,000				—				—
Catherine Giesecke			4,000				*				4,000				—				—
Isaac Zaharoni			3,000				*				3,000				—				—
Stuart Shleifer Rollover IRA			3,000				*				3,000				—				—
Merrill Lynch International			3,000				*				3,000				—				—

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														Ordinary Shares
		Ordinary Shares												Beneficially Owned
		Beneficially Owned Prior												After Completion of
		to the Offering								Number of				the Offering(1)
										Ordinary Shares
		Number of				Percentage				Registered for				Number of				Percentage
Name of Beneficial Owner		Shares				of Shares				Sale Hereby				Shares				of Shares
Terra Terwilliger			2,959				*				2,959				—				—	%
United Mizrahi Bank Ltd. Trust Account			2,800				*				2,800				—				—
Andres Martinez			2,600				*				2,600				—				—
Sung J. Chyun			2,500				*				2,500				—				—
Steve Kaufman			2,061				*				2,061				—				—
David Breskin			2,000				*				2,000				—				—
David Rowland			2,000				*				2,000				—				—
Michael Gerard			2,000				*				2,000				—				—
Michael Grant			2,000				*				2,000				—				—
Niel Bennet Brandon			2,000				*				2,000				—				—
Sanjay Zaveri			2,000				*				2,000				—				—
Vincent Eric Johnson			2,000				*				2,000				—				—
David Lee			2,000				*				2,000				—				—
Richard L. Turnure Ex			2,000				*				2,000				—				—
Roger Mcomber			2,000				*				2,000				—				—
Sheila C. Ruby TTEE Sheila C. Ruby Trust			2,000				*				2,000				—				—
Stanley Lee Marshall			2,000				*				2,000				—				—
Tinker Settlement Trust			2,000				*				2,000				—				—
First Int’l Bank of Israel Ltd. Trust A/ C			1,960				*				1,960				—				—
Galli Francesco			1,350				*				1,350				—				—
Robert E. Enslein Jr.			1,170				*				1,170				—				—
Nuri Halperin			1,150				*				1,150				—				—
Amit Korda			1,000				*				1,000				—				—
Amit Korda Avk Acct			1,000				*				1,000				—				—
Christopher Lee			1,000				*				1,000				—				—
Eli Amir			1,000				*				1,000				—				—
Gidon Hilb			1,000				*				1,000				—				—
Naama Korda			1,000				*				1,000				—				—
James E. Heyer IRA			1,000				*				1,000				—				—
Jonathan Mazer			1,000				*				1,000				—				—
Ohad Safran			1,000				*				1,000				—				—
US Clearing Corp.			1,000				*				1,000				—				—
Tamara L. Thompson			887				*				887				—				—
Jedidiah Ben Rosenzweig			875				*				875				—				—
Knight Equity Markets L.P.			676				*				676				—				—
Alisande M. Rozynko			591				*				591				—				—
Law Office of David J. Heyer, Ltd. Retirement Plan PSP			500				*				500				—				—
NFS/FMTC IRA FBO Kathryn Pitcher			500				*				500				—				—

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														Ordinary Shares
		Ordinary Shares												Beneficially Owned
		Beneficially Owned Prior												After Completion of
		to the Offering								Number of				the Offering(1)
										Ordinary Shares
		Number of				Percentage				Registered for				Number of				Percentage
Name of Beneficial Owner		Shares				of Shares				Sale Hereby				Shares				of Shares
NFS/FMTC IRA FBO Miles C. Pitcher			500				*				500				—				—	%
Ronald F. Mcgraw			500				*				500				—				—
Tim C. Chen			500				*				500				—				—
Don MacKenzie			357				*				357				—				—
Michael Scott Kabrin & Holly Sue Kabrin Jt. Ten			350				*				350				—				—
Niquette Hunt			346				*				346				—				—
Ryan Koonce			312				*				312				—				—
Marc De Luise			300				*				300				—				—
Scott Gerstein			300				*				300				—				—
Robert Marinelli & Monserrate Marinelli Jt. Ten			273				*				273				—				—
Michal Freeman-Shor			268				*				268				—				—
Mike Torgersen			260				*				260				—				—
Monique Konat Mann			250				*				250				—				—
Virginia W. Wei			236				*				236				—				—
Allan Rosenthal TTEE Rosenthal Bypass Trust U/ A			200				*				200				—				—
Avi Baratz			200				*				200				—				—
Scott M. Gerstein SEP/ IRA FCC as Custodian U/ A Dtd 1/26/01			200				*				200				—				—
Shawn J. Fried			200				*				200				—				—
Yehuda Riess & Candi L. Riess			200				*				200				—				—
Greg Oberfield			180				*				180				—				—
Edward Kessler			173				*				173				—				—
Mark Castillo			146				*				146				—				—
Brian O. Lucena			135				*				135				—				—
Lautz Grotte Engler & Swimley LLC			123				*				123				—				—
Diana Cruz			99				*				99				—				—
Scottrade, Inc. TR FBO Bradley A. Vugrinovich IRA			93				*				93				—				—
Yan Pujante			84				*				84				—				—
Paul Soltoff			83				*				83				—				—
Karl Fluis			69				*				69				—				—
Karl Maurer			54				*				54				—				—
Scott J. Boland			50				*				50				—				—
Linda E. Burgdorf			41				*				41				—				—
Rima Vogensen			29				*				29				—				—
Naomi Bloom			26				*				26				—				—
Donald Oberfield			13				*				13				—				—
Debra Vernon			10				*				10				—				—

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Ordinary Shares

Ordinary Shares

Beneficially Owned

Beneficially Owned Prior

After Completion of

to the Offering

Number of

the Offering(1)

Ordinary Shares

Number of

Percentage

Registered for

Number of

Percentage

Name of Beneficial Owner

Shares

of Shares

Sale Hereby

Shares

of Shares

Scott D. Bretschneider

3

*

3

—

—

Nigel Coster

1

*

1

—

—

All Other Selling Shareholders(23)

4,274,806   33,234,496

16.3

%

4,274,806

—

—

Total

*	Less than 1%.

	(1)	Represents the amount of shares that will be held by the selling shareholder after completion of this offering based on the assumption that all shares registered for sale hereby will be sold. However, the selling shareholders may offer all, some or none of the shares pursuant to this prospectus and any prospectus supplement.
	(2)	Consists of 5,183,695 shares held by Tiger Global, L.P.; 1,313,392 shares held by Tiger Global, Ltd.; and 133,998 shares held by Tiger Global II, L.P. Each entity has sole voting power over the shares it holds; Tiger Global Management, L.L.C. is the investment manager of Tiger Global, L.P., Tiger Global, Ltd. and Tiger Global II, L.P. and it has shared investment power over the 6,631,085 shares; Charles P. Coleman III is the sole managing member of the Tiger Global Management, L.L.C. Tiger Global Performance, L.L.C. is the sole general partner of Tiger Global, L.P.; Charles P. Coleman III is the sole managing member of the general partner of Tiger Global, L.P.; Tiger Global Performance, L.L.C. is the sole general partner of Tiger Global II, L.P.; Charles P. Coleman III is the sole managing member of Tiger Global II, L.P. The address for Tiger Global Management, L.L.C., Tiger Global, L.P. and Tiger Global II, L.P. is 101 Park Avenue, 48th Floor, New York, New York 10178. The address for Tiger Global, Ltd. is c/o Ironshore Corporate Services Limited, Queensgate House, South Church Street, P.O. Box 1234, George Town, Grand Cayman, Cayman Islands.
	(3)	Capital Research and Management Company, an investment adviser registered under Section 203 of the Investment Advisers Act of 1940, is deemed to be the beneficial owner of 2,505,000 shares as a result of acting as investment adviser to various investment companies registered under Section 8 of the Investment Company Act of 1940. Capital Research and Management Company has sole dispositive power over these shares. Included in the holdings of Capital Research and Management Company is the holding of SMALLCAP World Fund, Inc., an investment company registered under the Investment Company Act of 1940, which is advised by Capital Research and Management Company. SMALLCAP World Fund, Inc. is the beneficial owner of 1,850,000 shares, of which it has sole voting power. The persons controlling the investment decisions with respect to the shares held by Capital Research and Management Company and SMALLCAP World Fund are Gordon Crawford, J. Blair Frank, J. Dale Harvey, Claudia Huntington , Jonathan Knowles and Mark Denning. The address for both entities is 333 South Hope Street, Los Angeles, California 90071.
	(4)	Criterion Capital Management LLC, of which Christopher H. Lord is the sole manager, purchased shares on the open market with no special arrangements with the Company.
	(5)	The registered office of FM Fund Management Limited is Queensgate House, South Church Street, George Town, Grand Cayman, Cayman Islands. Florian Homm has voting and investment powers for the shares held by FM Fund Management Limited.
	(6)	Includes 1,275,000 shares issuable upon exercise of share options, 337,500 shares of which underlie options exercisable within 60 days of October 19, 2005.
	(7)	Includes (i) 2,250,000 shares issuable upon exercise of share options, 2,093,750 shares of which underlie options exercisable within 60 days of October 19, 2005, (ii) 1,062,415 shares held by the Joe Shapira Family Trust of which Mr. Shapira is trustee, (iii) 550,000 shares held by the Shapira Children’s Trust of which Mr. Shapira is trustee, and (iv) 12,000 shares, of which he disclaims beneficial ownership, except to the extent of his pecuniary interest, held by a custodian for Mr. Shapira’s children.
	(8)	Includes (i) 2,000,000 shares issuable upon exercise of share options exercisable within 60 days of October 19, 2005, and (ii) 8,000 shares held by his spouse.
	(9)	Excludes 5,183,695 shares held by Tiger Global, L.P. and 133,998 shares held by Tiger Global II, L.P., of which Scott Shleifer is a limited partner. Mr. Shleifer holds the position of Managing Director at Tiger Global Management, L.L.C.

(10)	Represents shares issuable upon exercise of share options, 20,000 shares of which underlie options exercisable within 60 days of October 19, 2005.
(11)	Represents shares issuable upon exercise of share options, 20,000 shares of which underlie options exercisable within 60 days of October 19, 2005.
(12)	Includes 80,000 shares issuable upon exercise of share options, 15,000 shares of which underlie options exercisable within 60 days of October 19, 2005.
(13)	Includes 80,000 shares issuable upon exercise of share options, 15,000 shares of which underlie options exercisable within 60 days of October 19, 2005.

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(14)	Shares beneficially owned by all executive officers and directors as a group include options to purchase 4,595,000 shares, 2,752,501 shares of which are currently exercisable or exercisable within 60 days of October 19, 2005.
(15)	Includes 430,000 ordinary shares issuable upon the exercise of warrants that are currently exercisable. In August 2003, we issued warrants to Europlay Capital Advisors, LLC (“ECA”) for the purchase of up to 1,000,000 ordinary shares at an exercise price of $2.49 per share in exchange for financial consulting services provided to us by ECA. In December 2004, ECA and our company agreed to accelerate vesting of 250,000 of the remaining 500,000 unvested warrants, and cancel the remaining 250,000 unvested warrants. Accordingly, we issued a warrant certificate for 750,000 shares.
(16)	Consists of 250,000 ordinary shares issuable upon the exercise of options, which includes 38,751 shares issuable upon the exercise of options that are currently exercisable or exercisable within 60 days of October 19, 2005 and 50,000 shares issuable upon the exercise of options that will vest upon the listing of our securities on the American Stock Exchange. Mr. Liberman is our Chief Operating Officer, General Counsel and Corporate Secretary.
(17)	Consists of 250,000 ordinary shares issuable upon the exercise of options, which includes 50,000 shares issuable upon exercise of options that are currently exercisable or exercisable within 60 days of October 19, 2005 and 50,000 shares issuable upon exercise of options that will vest upon the listing of our securities on the American Stock Exchange. Mr. Thompson is our Chief Financial Officer.
(18)	Consists of 250,000 ordinary shares issuable upon the exercise of options, which includes 62,500 shares issuable upon the exercise of options that are currently exercisable or exercisable within 60 days of October 19, 2005. Mr. Nelson is our Chief Technology Officer. In 2004, we invested $250,000 in Yobon, Inc., a provider of web toolbar technology. In exchange for our investment in Yobon, we received a secured convertible promissory note. The note will automatically convert into equity of Yobon upon its completion of an equity financing of at least $1,000,000, if such equity financing is completed within certain timeframes. Mr. Nelson, is the Chairman of Yobon.
(19)	In July 2005, we issued 200,000 ordinary shares to Sherman Networks Ltd. in exchange for services.
(20)	In June 2005, we issued 150,000 ordinary shares to two shareholders of MingleMatch, Inc., one of which was Mr. Peterson, in connection with our acquisition of MingleMatch.
(21)	In June 2005, we issued 150,000 ordinary shares to two shareholders of MingleMatch, Inc., one of which was Ms. Peterson, in connection with our acquisition of MingleMatch.
(22)	In June 2005, each of Mr. and Mrs. Peterson received 75,000 ordinary shares in connection with our acquisition of MingleMatch, Inc.

( 23)

Represents shares for which we are unable to obtain information regarding the beneficial owners. Our ordinary shares are traded on the Frankfurt Stock Exchange in the form of GDSs. The ordinary shares that are traded in the form of GDSs constitute approximately 75% of our outstanding shares, all of which are on deposit with The Bank of New York, our depositary bank for the GDSs. We have been unable to obtain information for beneficial owners who hold their securities through non-U.S. brokers and certain beneficial owners who have chosen not to provide information. We will provide information regarding such beneficial holders through the filing of prospectus supplements. We will file a prospectus supplement each time that an ordinary share is deposited with the Bank of New York to obtain an ADS, including when selling shareholders that hold their ordinary shares in the form of GDSs offer and sell their shares in the United States by surrendering those GDSs to the Bank of New York and requesting it to deliver ADSs to the order of the purchaser. We will instruct the Bank of New York that when a holder deposits an ordinary share for an ADS, the holder must provide the Bank of New York with information regarding the beneficial owner, including, but not limited to, the name, total amount of shareholdings (including options and warrants), whether the beneficial owner is a broker- dealer or an affiliate of a broker-dealer, and whether the holder has had a material relationship with us within the past three years. Such information will be used to prepare the prospectus supplements that we file with the Securities and Exchange Commission to update the selling shareholders table.

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	•	the chairman of the meeting;
	•	not less than three shareholders present at the meeting in person, by proxy or represented by an authorized representative and entitled to vote;
	•	any shareholder or shareholders present at the meeting in person, by proxy or represented by an authorized representative and representing not less than one-tenth of the total voting rights of all shareholders having the right to vote at such meeting; or
	•	any shareholder or shareholders present in person, by proxy or represented by an authorized representative and holding a number of ordinary shares conferring a right to vote at the meeting, being shares on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all of the shares conferring that right.

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	•	in which a spouse, or child or stepchild under the age of 18, is interested;
	•	in which a company is interested, which includes interests held by other companies over which that company has effective voting power, and either (a) that company or its directors generally act in accordance with that person’s directions or instructions or (b) that person controls one-third or more of the voting power of that company at general meetings; or
	•	in which another party is “interested” and the person and that other party are parties to an agreement under section 204 of the Companies Act 1985. Such an agreement is one which provides for two or more parties to acquire interests in shares of a particular public company and imposes obligations or restrictions on any of the parties as to the use, retention or disposal of such interests acquired pursuant to such agreement, if any interest in the company’s shares is in fact acquired by any of the parties pursuant to the agreement.

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	•	increase the share capital by the creation of new shares of such amount as the resolution shall prescribe with such preferred, deferred or other special rights, or subject to such restrictions, whether as regards dividend, return of capital, voting or otherwise as may be determined and which may be redeemable;
	•	consolidate and divide all or any of the share capital into shares of larger amount than our existing shares;
	•	cancel shares which, at the date of the passing of the resolution, have not been taken, or agreed to be taken, by any person and diminish the amount of its share capital by the amount of shares so cancelled; and
	•	subdivide all or any of the shares into shares of a smaller amount than is fixed by the Memorandum and Articles and may by resolution determine that as between the holders of the shares resulting from such subdivision one or more of the shares may, as compared with the others, have any such preferred, deferred or other special rights or be subject to any restrictions, as we have the power to attach to unissued or new shares.

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	•	We do not timely request that the rights be distributed to you or we request that the rights not be distributed to you; or
	•	We fail to deliver satisfactory documentation to the depositary bank; or
	•	The depositary bank determines that it is not reasonably practicable to distribute the rights, such as where the value of the rights to be distributed is too small to justify the expense of making the distribution.

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	•	We do not deliver satisfactory documentation to the depositary bank; or
	•	The depositary bank determines that all or a portion of the distribution to you is not reasonably practicable.

	•	The ordinary shares are duly authorized, validly issued, fully paid, and non-assessable;
	•	All preemptive, and similar, rights, if any, with respect to such ordinary shares have been validly waived or exercised;
	•	You are duly authorized to deposit the ordinary shares; and
	•	The ordinary shares presented for deposit are not, and the ADSs issuable upon such deposit will not be, “restricted securities,” as defined in the deposit agreement.

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	•	Ensure that the surrendered ADR certificate is properly endorsed or otherwise in proper form for transfer;
	•	Provide such proof of identity and genuineness of signatures as the depositary bank deems appropriate;
	•	Provide any transfer stamps required by the State of New York or the United States; and
	•	Pay all applicable fees, charges, expenses, taxes and other government charges payable by ADR holders pursuant to the terms of the deposit agreement, upon the transfer of ADRs.

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	•	Temporary delays that may arise because (1) the transfer books for the ordinary shares or ADSs are closed, or (2) ordinary shares are immobilized on account of a shareholders’ meeting or a payment of dividends;
	•	Obligations to pay fees, taxes and similar charges; and
	•	Restrictions imposed because of laws or regulations applicable to ADSs or the withdrawal of securities on deposit.

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	•	Fee of $5.00 or less per 100 ADSs or portion thereof for the execution and delivery of ADRs and the surrender of ADRs;
	•	Fee of $0.02 or less per ADS for any cash distribution made pursuant to the deposit agreement;
	•	Fee for the distribution of shares, such fee being in an amount equal to the fee for the execution and delivery of ADSs referred to above which would have been charged as a result of the deposit of such shares but which shares are instead distributed by the depositary to holders; and
	•	Fee not in excess of $1.50 per certificate for an ADR or ADRs for transfers made pursuant to the terms of the Deposit Agreement.

	•	Fees for the transfer and registration of ordinary shares charged by the registrar and transfer agent for the ordinary shares in the United Kingdom, e.g., upon deposit and withdrawal of ordinary shares;
	•	Expenses incurred for converting foreign currency into U.S. dollars;
	•	Fees and expenses incurred by the depositary in compliance with exchange controls or other regulatory requirements;
	•	Expenses for cable, telex and fax transmissions and for delivery of securities;
	•	Taxes and duties upon the transfer of securities, e.g., when ordinary shares are deposited or withdrawn from deposit; and
	•	Fees and expenses incurred in connection with the delivery or servicing of ordinary shares on deposit.

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	•	are only obligated to take the actions specifically set forth in the deposit agreement without negligence or bad faith;
	•	are not liable if either of us is prevented or delayed by law or circumstances beyond our control from performing our obligations under the deposit agreement;
	•	are not liable if either of us exercises discretion permitted under the deposit agreement;
	•	have no obligation to become involved in a lawsuit or other proceeding related to the ADRs or the deposit agreement on your behalf or on behalf of any other person;
	•	may rely upon any documents we believe in good faith to be genuine and to have been signed or presented by the proper party.

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	•	Convert the foreign currency to the extent practical and lawful and distribute the U.S. dollars to the holders for whom the conversion and distribution is lawful and practical.
	•	Distribute the foreign currency to holders for whom the distribution is lawful and practical.
	•	Hold the foreign currency without liability for interest for the applicable holders.

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	•	1% of the number of ordinary shares then outstanding, which as of October 19, 2005 will equal approximately 262,095 ordinary shares; or
	•	the average weekly trading volume of our ordinary shares in the form of ADSs on the American Stock Exchange during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

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	•	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	•	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
	•	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
	•	an exchange distribution in accordance with the rules of the applicable exchange;
	•	privately negotiated transactions;
	•	settlement of short sales entered into after the date of this prospectus;
	•	broker-dealers may agree with the selling shareholders to sell a specified number of such shares at a stipulated price per share;
	•	a combination of any such methods of sale; or
	•	through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise.

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	•	tax-exempt organizations;
	•	regulated investment companies and real estate investment trusts;
	•	insurance companies;
	•	broker-dealers and traders in securities;
	•	banks or other financial institutions;
	•	investors whose functional currency is not the United States dollar;
	•	investors that hold our equity shares or ADSs as part of a hedge, straddle or conversion transaction;
	•	investors that own, directly, indirectly, or by attribution 10% or more of our total combined voting stock;
	•	investors subject to the United States alternative minimum tax;
	•	United States expatriates and those investors who are U.S. Holders (as defined below) and who are also tax residents of any other country; or
	•	persons holding ADSs or ordinary shares through partnerships or other pass through entities.

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	•	a citizen or resident of the United States;
	•	a corporation, or any other entity taxable as a corporation, created or organized in or under the laws of the United States or any state thereof, including the District of Columbia;
	•	an estate the income of which is subject to United States federal income tax regardless of its source; or
	•	a trust if a court within the United States is able to exercise primary supervision over its administration and one or more United States persons have the authority to control all substantial decisions of the trust, or if the trust has made a valid election under U.S. Treasury regulations to be treated as a United States person.

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	•	such gain is considered effectively connected with the Non-U.S. Holder’s conduct of a United States trade or business (and, if required by an applicable income tax treaty, the income is attributable to a permanent establishment maintained in the United States); or
	•	if such Non-U.S. Holder is an individual that is present in the United States for 183 days or more during the taxable year of the disposition and certain other conditions are met.

	•	is a corporation or other exempt recipient; or
	•	provides an accurate taxpayer identification number and makes any other required certification.

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Spark Networks plc (formerly known as MatchNet plc)
Report of Ernst & Young LLP, Independent Registered Public Accounting Firm		F-2
Consolidated Balance Sheets at June 30, 2005 (unaudited) and December 31, 2003 and 2004		F-3
Consolidated Statements of Operations for the six months ended June 30, 2005 (unaudited) and the years ended December 31, 2002, 2003 and 2004		F-4
Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2005 (unaudited) and the years ended December 31, 2002, 2003 and 2004		F-5
Consolidated Statements of Cash Flows for the six months ended June 30, 2005 (unaudited) and the years ended December 31, 2002, 2003 and 2004		F-6
Notes to Consolidated Financial Statements		F-7
MingleMatch, Inc.
Report of Tanner LC, Independent Registered Public Accounting Firm		F-30
Consolidated Balance Sheets as of December 31, 2004 and 2003		F-31
Consolidated Statements of Operations for the three months ended March 31, 2005 and 2004 (unaudited) and the years ended December 31, 2004 and 2003		F-32
Consolidated Statements of Stockholders’ Deficit for the three months ended March 31, 2005 (unaudited) and the years ended December 31, 2004 and 2003		F-33
Consolidated Statements of Cash Flows for the three months ended March 31, 2005 and 2004 (unaudited) and the years ended December 31, 2004 and 2003		F-34
Notes to Consolidated Financial Statements		F-35

F-1

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	/s/ Ernst & Young LLP

F-2

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				December 31,
												June 30,
				2003				2004				2005
												(unaudited)
Assets
Current assets:
	Cash and cash equivalents			$	2,035			$	4,265			$	8,092
	Marketable securities				3,780				3,158				200
	Restricted cash				—				1,330				1,393
	Accounts receivable, net of allowance of $13 for June 30, 2005 and December 31, 2004				410				641				942
	Advances to employees				330				20				1
	Prepaid expenses and other				902				879				2,168
		Total current assets			7,457				10,293				12,796
Property and equipment, net					4,273				6,467				6,069
Goodwill, net					2,024				7,955				15,808
Intangible assets, net					987				1,069				5,300
Investment in noncontrolled affiliate					—				1,167				1,143
Deposits and other assets					2,228				408				369
		Total assets		$	16,969			$	27,359			$	41,485
Liabilities and Shareholders’ Equity
Current liabilities:
	Accounts payable			$	3,385			$	3,014			$	2,507
	Accrued liabilities				4,555				8,052				7,930
	Deferred revenue				3,232				3,933				3,925
	Notes payable — current portion				—				400				10,475
	Current portion of obligations under capital leases				316				173				—
		Total current liabilities			11,488				15,572				24,837
Obligations under capital leases, net of current portion					171				—				—
Other liabilities					—				—				203
Notes payable — long term					—				1,300				1,300
		Total liabilities			11,659				16,872				26,340
Shares subject to rescission (Note 10)					—				3,819				3,819
Commitments and contingencies (Note 13)					—				—				—
Shareholders’ equity:
	Authorized capital £800,000 divided into 80,000,000 ordinary shares of 1p each; issued and outstanding 25,901,160 shares as of June 30, 2005, 24,587,351 shares as of December 31, 2004, 19,556,699 shares as of December 31, 2003 at a stated value of:				313				401				426
	Additional paid-in-capital				39,737				50,423				53,921
	Deferred share-based compensation				(2,572	)			(305	)			(41	)
	Accumulated other comprehensive (loss)				(40	)			(13	)			(270	)
	Notes receivable from employees				(120	)			(203	)			(203	)
	Accumulated deficit				(32,008	)			(43,635	)			(42,507	)
		Total shareholders’ equity			5,310				6,668				11,326
		Total liabilities and shareholders’ equity		$	16,969			$	27,359			$	41,485

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																Six months ended
				Years ended December 31,												June 30
				2002				2003				2004				2004				2005
																(unaudited)
Net revenues				$	16,352			$	36,941			$	65,052			$	30,862			$	31,990
Direct marketing expenses					5,396				18,395				31,240				15,864				11,279
		Contribution margin			10,956				18,546				33,812				14,998				20,711
Operating expenses:
	Indirect marketing				403				907				2,451				1,051				503
	Customer service				1,207				2,536				3,379				1,878				1,137
	Technical operations				1,587				4,341				7,162				3,318				2,950
	Product development				603				959				2,013				871				1,890
	General and administrative (excluding share-based compensation)				7,996				16,885				27,727				12,078				12,512
	Share based compensation				—				1,871				1,704				2,401				(28	)
	Amortization of intangible assets other than goodwill				524				555				860				482				411
	Impairment of long-lived assets				—				1,532				208				—				—
		Total operating expenses			12,320				29,586				45,504				22,079				19,375
Operating (loss) income					(1,364	)			(11,040	)			(11,692	)			(7,081	)			1,336
Interest (income) and other expenses, net					(840	)			(188	)			(66	)			32				144
(Loss) income before income taxes					(524	)			(10,852	)			(11,626	)			(7,113	)			1,192
Provision for income taxes					—				—				1				1				64
Net (loss) income				$	(524	)		$	(10,852	)		$	(11,627	)		$	(7,114	)		$	1,128
Net (loss) income per share — basic and diluted				$	(0.03	)		$	(0.57	)		$	(0.51	)		$	(0.33	)		$	0.04
Weighted average shares outstanding — basic					18,460				18,970				22,667				21,521				25,389
Weighted average shares outstanding — diluted																					29,080

F-4

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																			Accumulated				Notes
			Ordinary shares								Additional				Deferred				other				receivable								Total
											paid-in				share				comprehensive				from				Accumulated				shareholders’
			Shares				Amount				capital				compensation				income (loss)				employees				deficit				equity
BALANCE, December 31, 2001				17,937			$	288			$	33,458			$	—			$	—			$	—			$	(20,632	)		$	13,114
	Issuance of ordinary shares upon exercise of share options and warrants			770				11				779				—				—				—				—				790
	Unrealized gain on marketable securities			—				—				—				—				83				—				—				83
	Net loss			—				—				—				—				—				—				(524	)			(524	)
BALANCE, December 31, 2002				18,707				299				34,237				—				83				—				(21,156	)			13,463
	Issuance of ordinary shares upon exercise of share options and warrants			850				14				1,057				—				—				—				—				1,071
	Unrealized loss on marketable securities			—				—				—				—				(123	)							—				(123	)
	Share compensation			—				—				4,443				(2,572	)			—				—				—				1,871
	Issuance of loans to employees																							(120	)							(120	)
	Net loss			—				—				—				—				—				—				(10,852	)			(10,852	)
BALANCE, December 31, 2003				19,557				313				39,737				(2,572	)			(40	)			(120	)			(32,008	)			5,310
	Issuance of ordinary shares upon exercise of share options and warrants			4,430				77				7,603				—				—				—				—				7,680
	Private placement of ordinary shares			600				11				3,646				—				—				—				—				3,657
	Unrealized loss on marketable securities			—				—				—				—				(73	)			—				—				(73	)
	Foreign currency translation adjustment			—				—				—				—				100								—				100
	Share-based compensation			—				—				(563	)			2,267				—				—				—				1,704
	Issuance of loans to employees			—				—				—				—				—				(83	)			—				(83	)
	Net loss			—				—				—				—				—				—				(11,627	)			(11,627	)
BALANCE, December 31, 2004				24,587				401				50,423				(305	)			(13	)			(203	)			(43,635	)			6,668
	Issuance of ordinary shares upon exercise of share option and warrants (unaudited)			1,164				22				2,714				—				—				—				—				2,736
	Issuance of ordinary shares for acquisition (unaudited)			150				3				1,076				—				—				—				—				1,079
	Unrealized loss on marketable securities (unaudited)			—				—				—				—				115				—				—				115
	Foreign currency translation adjustment (unaudited)			—				—				—				—				(372	)			—				—				(372	)
	Share based compensation (unaudited)			—				—				(292	)			264				—				—				—				(28	)
	Net income (unaudited)			—				—				—				—				—				—				1,128				1,128
BALANCE, June 30, 2005 (unaudited)				25,901			$	426			$	53,921			$	(41	)		$	(270	)		$	(203	)		$	(42,507	)		$	11,326

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																Six months ended
				Years ended December 31,												June 30,
				2002				2003				2004				2004				2005
																(unaudited)
Cash Flows From Operating Activities:
	Net Loss			$	(524	)		$	(10,852	)		$	(11,627	)		$	(7,114	)		$	1,128
	Adjustments to reconcile net loss to cash provided by (used in) operating activities:
		Depreciation and amortization			1,398				1,996				3,925				1,852				2,178
		Impairment of long-lived assets			—				1,532				208				—				—
		Share-based compensation			—				1,871				1,704				2,401				(28	)
		Gain (loss) from sale of marketable securities			—				—				(3	)			—				105
	Changes in operating assets and liabilities:
		Accounts receivable			54				(318	)			(231	)			(398	)			(301	)
		Advances to employees			(266	)			1497				45				(208	)			19
		Restricted cash			—				—				(1,330	)			—				(63	)
		Prepaid expenses and other assets			781				(297	)			143				(1,456	)			(1,191	)
		Accounts payable and accrued liabilities			153				5,477				3,126				2,994				(834	)
		Notes payable			—				—				1,700				—				278
		Deferred revenue			542				1,697				701				705				(8	)
	Net cash provided by (used in) operating activities				2,138				2603				(1,639	)			(1,224	)			1,283
Cash flows from investing activities:
	Sale of marketable securities				3,012				5,422				3,553				3,381				2,968
	Purchases of marketable securities				(5,373	)			(2,033	)			(3,000	)			(3,000	)			—
	Purchases of property and equipment				(1,833	)			(2,733	)			(5,467	)			(3,577	)			(1,208	)
	Purchases of businesses and intangible assets				(993	)			(151	)			(5,077	)			(4,245	)			—
	Purchase of noncontrolled affiliate				—				—				(1,167	)			—				—
	Deposit for acquisition of business				—				(2,046	)			—				—				—
	Acquisition of MingleMatch, Inc., net of cash acquired																				(1,778	)
	Net cash used in investing activities				(5,187	)			(1,541	)			(11,158	)			(7,441	)			(18	)
Cash flows from financing activities:
	Proceeds from issuance of ordinary shares				790				1,071				15,156				12,945				2,736
	Principal payments of capital lease obligations				—				(176	)			(314	)			(154	)			(173	)
	Advances to employees for exercise of stock options				—				(265	)			265				265				—
	Loans to employees				—				(120	)			(83	)			(83	)			—
	Net cash provided by financing activities				790				510				15,024				12,973				2,563
Effect of exchange rate on cash					—				—				3				—				(1	)
	Net increase (decrease) in cash				(2,259	)			1,572				2,230				4,308				3,827
	Cash and cash equivalents at beginning of period				2,722				463				2,035				2,035				4,265
	Cash and cash equivalents at end of period			$	463			$	2,035			$	4,265			$	6,343			$	8,092
Supplemental disclosure of cash flow information:
	Cash paid (received) for interest			$	(320	)		$	75			$	41			$	(11	)		$	19
	Cash paid (received) for income taxes			$	192			$	—			$	1			$	1			$	(4	)
	Supplemental information of non-cash investing and financing activities:
	Equipment capital lease financing				—			$	662				—				—				—
	Forgiveness of debt in exchange for property and equipment			$	41				—				—				—				—
	Notes receivable for sale of domain names			$	405				—				—				—				—
MingleMatch, Inc. acquisition:
	Short-term notes payable issued				—				—				—			$	—			$	10,000
	Fair value of ordinary shares issued				—				—				—			$	—			$	1,079
	Accrued transaction costs				—				—				—			$	—			$	165

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1.	The Company and Summary of Significant Accounting Policies

F-7

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F-8

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F-9

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F-10

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														Six months ended
		Year ended December 31,												June 30
		2002				2003				2004				2004				2005
														(unaudited)
Net income (loss), as reported		$	(524	)		$	(10,852	)		$	(11,627	)		$	(7,114	)		$	1,128
Add-back: Total employee share compensation recorded in the accompanying consolidated statements of operations			—				75				367				233				48
Less: Total compensation as if the fair value method was used, net of tax effect			(4,335	)			(4,645	)			(4,921	)			(2,817	)			(3,428	)
Pro forma net loss		$	(4,859	)		$	(15,422	)		$	(16,181	)		$	(9,698	)		$	(2,252	)
Net income (loss) per common share:
As reported (basic and diluted)		$	(0.03	)		$	(0.57	)		$	(0.51	)		$	(0.33	)		$	0.04
Pro forma (basic and diluted)		$	(0.26	)		$	(0.81	)		$	(0.71	)		$	(0.45	)		$	(0.09	)

														Six months
		Year ended December 31,												ended June 30,
		2002				2003				2004				2004				2005
Expected life in years			4				4				4				4				4
Dividend per share			—				—				—				—				—
Volatility			83.3	%			75.4	%			76.2	%			70.0	%			76.2	%
Risk-free interest rate			4.0	%			2.0	%			3.5	%			3.5	%			3.5	%

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														Six months ended
		Year ended December 31,												June 30,
		2002				2003				2004				2004				2005
														(unaudited)
Net income (loss)		$	(524	)		$	(10,852	)		$	(11,627	)		$	(7,114	)		$	1,128
Changes in unrealized gains/losses in available for sale securities			83				(123	)			(73	)			(75	)			115
Foreign currency translation adjustments			—				—				100				(175	)			(372	)
Total comprehensive income (loss)		$	(441	)		$	(10,975	)		$	(11,600	)		$	(7,364	)		$	871

		Year ended								Six months ended
		December 31,								June 30,
		2003				2004				2005
										(unaudited)
Gain/loss on marketable securities		$	(40	)		$	(113	)		$	2
Foreign currency translation			—				100				(272	)
		$	(40	)		$	(13	)		$	(270	)

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		For the six months
		ended June 30,
		2005				2004
		(unaudited)
(Loss) Income Per Common Share — Basic
Net (loss) income applicable to common shares		$	1,128			$	(7,114	)
Weighted average shares outstanding — basic			25,389				21,521
Basic Earnings Per Share		$	0.04			$	(0.33	)
(Loss) Income Per Common Share — Diluted
Net (loss) income applicable to common shares		$	1,128			$	(7,114	)
Weighted average shares outstanding — basic			25,389				NA
Dilutive options using the treasury stock method			3,323				NA
Dilutive warrants using the treasury stock method			368				NA
Weighted average shares outstanding — diluted			29,080				NA
Diluted earning per share		$	0.04				NA

2.	Income Taxes

		Year ended December 31,
		2002				2003				2004
Provision on earnings at federal statutory rate			(35.0	)			(35.0	)			(35.0	)
State tax provision, net of federal tax effect			(6.0	)			(6.0	)			(7.6	)
Permanent items and other			—				—				(1.3	)
Valuation allowance			41.0				41.0				43.9
Total provision (benefit) for income taxes			—				—				—

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		Year ended December 31,
		2002				2003				2004
		(amounts in thousands)
Deferred income tax assets (liabilities)
Net operating loss carry-forward		$	4,700			$	7,810			$	18,131
Depreciation and amortization			1,873				1,388				2,274
Compensation accruals			35				994				1,574
Accruals and reserves			90				750				878
State taxes			(409	)			(613	)			(1,555	)
(Loss) on disposal of assets			(607	)			(607	)			(129	)
Excess capital loss over capital gain			605				605				605
Credits			—				—				204
Other			521				501				93
Total before valuation allowance			6,808				10,828				22,075
Less: Valuation allowance			(6,808	)			(10,828	)			(22,075	)
Total deferred income tax asset		$	—			$	—			$	—

3.	Acquisitions of Businesses

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		Year ended				Six months ended
		December 31, 2004				June 30, 2005
Net revenues		$	67,556			$	33,443
Net (loss) income		$	(13,267	)		$	59
Net (loss) income per share — basic		$	(0.58	)		$	—
Net (loss) income per share — diluted		$	(0.58	)		$	—

			As of May 19, 2005
			(in thousands)
Current assets (including cash acquired of $221)			$	295
Property and equipment, net				162
Goodwill				8,172
Domain names and databases				4,655
	Total assets acquired			13,284
Current liabilities				41
	Net assets acquired		$	13,243

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4.	Employee and Officer Advances

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5.	Property and Equipment

		As of December 31,								As of June 30,
		2003				2004				2005
										(unaudited)
Computer equipment		$	2,960			$	4,228			$	4,674
Computer software			4,009				7,475				8,372
Furniture, fixtures, and equipment			261				593				619
Leasehold improvements			292				390				392
			7,522				12,686				14,057
Less: Accumulated depreciation			(3,249	)			(6,219	)			(7,988	)
		$	4,273			$	6,467			$	6,069

6.	Goodwill and Other Intangible Assets

		As of December 31,																As of June 30,
		2003								2004								2005
		Gross				Accumulated				Gross				Accumulated				Gross				Accumulated
		Amount				Amortization				Amount				Amortization				Amount				Amortization
																		(unaudited)
Member databases		$	1,717			$	1,247			$	2,277			$	1,913			$	4,612			$	2,141
Subscriber databases																			370				171
Purchased technologies			757				563				757				757				961				761
Domain names			323				—				705				—				2,429				—
Total		$	2,797			$	1,810			$	3,739			$	2,670			$	8,373			$	3,073

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7.	Accrued Liabilities

		December 31,								June 30,
		2003				2004				2005
										(unaudited)
Advertising		$	1,406			$	3,356			$	1,593
Loss contingencies			1,700				2,280				2,007
Software & service agreement			—				920				537
Other accrued liabilities			1,449				1,496				3,793
Total		$	4,555			$	8,052			$	7,930

8.	Obligations Under Capital Leases

9.	Notes Payable

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October 31, 2005		$	1,000,000
January 10, 2006		$	2,000,000
March 31, 2006		$	3,000,000
May 31, 2006		$	2,650,000
May 31, 2006		$	1,350,000

10.	Shareholders’ Equity

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							Weighted
			Number of				average price
			shares				per share
			(in thousands)
Outstanding at December 31, 2000				2,345			$	4.57
	Granted			3,460			$	1.35
	Exercised			(100	)		$	0.89
	Cancelled			(1,000	)		$	3.19
Outstanding at December 31, 2001				4,705			$	2.58
	Granted			6,043			$	2.11
	Exercised			(160	)		$	0.99
	Cancelled			(65	)		$	1.56
Outstanding at December 31, 2002				10,523			$	2.34
	Granted			1,367			$	2.41
	Exercised			(816	)		$	1.39
	Cancelled			(765	)		$	3.33
Outstanding at December 31, 2003				10,309			$	2.35
	Granted			5,302			$	6.42
	Exercised			(4,308	)		$	2.64
	Cancelled			(2,306	)		$	6.54
Outstanding at December 31, 2004				8,997			$	3.81
	Granted (unaudited)			1,243			$	8.35
	Exercised (unaudited)			(995	)		$	2.71
	Cancelled (unaudited)			(296	)		$	7.92
Outstanding at June 30, 2005 (unaudited)				8,949			$	3.96

		Options outstanding												Options exercisable
						Weighted
						average				Weighted								Weighted
		Number				remaining life				average				Number				average
Range of exercise prices		of shares				(years)				exercise price				of shares				exercise price
$0.90 to $2.00			145				3			$	1.20				120			$	1.06
$2.02 to $2.02			4,010				0			$	2.02				4,010			$	2.02
$2.04 to $5.25			1,844				3			$	3.36				405			$	2.87
$5.91 to $7.29			1,831				5			$	1.20				105			$	6.12
$7.66 to $9.52			1,120				6			$	8.55				135			$	8.59
Weighted Average			8,949				3			$	3.96				4,775			$	2.34

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		Options outstanding												Options exercisable
						Weighted
						average				Weighted								Weighted
		Number				remaining life				average				Number				average
Range of exercise prices		of shares				(years)				exercise price				of shares				exercise price
$2.31 to $12.01			4,218				4			$	5.68				561			$	4.66
$2.28			4,060				1			$	2.28				4,060			$	2.28
$0.96 to $2.11			719				0			$	1.46				679			$	1.42
			8,997							$	3.81				5,300			$	2.42

		Options outstanding												Options exercisable
						Weighted
						average				Weighted								Weighted
		Number				remaining life				average				Number				average
Range of exercise prices		of shares				(years)				exercise price				of shares				exercise price
$2.28 to $7.50			1,020				2			$	6.50				910			$	6.83
$1.40 to $2.27			6,914				3			$	2.11				200			$	2.16
$0.89 to $1.39			2,375				2			$	1.26				2,340			$	1.26
			10,309							$	2.35				3,450			$	2.78

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11.	Employee Benefit Plan

12.	Segment Information

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																Six months ended
				Year ended December 31,												June 30,
				2002				2003				2004				2004				2005
				(in thousands)
Net Revenues:
		JDate		$	8,372			$	16,091			$	23,820			$	11,597			$	12,703
		AmericanSingles			6,644				19,253				35,224				17,255				15,353
		Other Businesses			1,336				1,597				6,008				2,010				3,934
	Total			$	16,352			$	36,941			$	65,052			$	30,862			$	31,990
Direct Marketing Expenses:
		JDate		$	224			$	739			$	1,740			$	697			$	1,208
		AmericanSingles			3,970				15,887				24,954				13,394				7,570
		Other Businesses			1,202				1,769				4,546				1,773				2,501
	Total			$	5,396			$	18,395			$	31,240			$	15,864			$	11,279
Contribution:
		JDate		$	8,148			$	15,352			$	22,080			$	10,900			$	11,495
		AmericanSingles			2,674				3,366				10,270				3,861				7,783
		Other Businesses			134				(172	)			1,462				237				1,433
	Total			$	10,956			$	18,546			$	33,812			$	14,998			$	20,711

															Six months ended
			Year ended December 31,												June 30,
			2002				2003				2004				2004				2005
Net Revenues:
	United States		$	16,352			$	36,941			$	62,604			$	30,202			$	30,163
	Israel			—				—				2,448				660				1,826
			$	16,352			$	36,941			$	65,052			$	30,862			$	31,990
Identifiable Assets:
	United States		$	7,367			$	9,506			$	11,327			$	9,901			$	23,215
	Israel			—				6				5,857				5,638				5,478
			$	7,367			$	9,512			$	17,184			$	15,539			$	28,693

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13.	Commitments and Contingencies

Year Ending
	2005		$	711
	2006			589
	2007			85
Total			$	1,385

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F-27

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14.	Related Party Transactions

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15.	Subsequent Event (unaudited)

F-29

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	/s/ Tanner Lc

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				December 31,
				2004				2003
Assets
Current assets:
	Cash			$	295,471			$	226,022
	Marketable securities				180,635				—
	Notes receivable				200,000				—
	Prepaid advertising				618,111				152,217
	Other current assets				26,359				1,650
		Total current assets			1,320,576				379,889
Property and equipment, net					164,509				59,077
Web site development costs, net					6,480				10,800
		Total assets		$	1,491,565			$	449,766
Liabilities and Stockholders’ Deficit
Current liabilities:
	Accounts payable			$	8,467			$	11,366
	Accrued liabilities				62,714				8,593
	Deferred revenue				263,126				94,080
		Total current liabilities			334,307				114,039
Deferred revenue, net of current portion					2,877,809				1,191,185
		Total liabilities			3,212,116				1,305,224
Commitments and contingencies
Stockholders’ deficit:
	Common stock, no par value: 50,000,000 shares authorized; 10,000,000 shares issued and outstanding				30,422				30,422
	Accumulated deficit				(1,834,178	)			(885,880	)
	Accumulated other comprehensive income				83,205				—
	Total stockholders’ deficit				(1,720,551	)			(855,458	)
		Total liabilities and stockholders’ deficit		$	1,491,565			$	449,766

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												Three Months Ended
				Years Ended December 31,								March 31,
				2004				2003				2005				2004
												(unaudited)				(unaudited)
Sales				$	2,503,702			$	734,230			$	975,894			$	510,081
Selling, general and administrative expenses					2,967,384				1,256,873				1,128,463				615,953
		Loss from operations			(463,682	)			(522,643	)			(152,569	)			(105,872	)
Other income (expense):
	Realized gain (loss) on sale of marketable securities				(2,580	)			—				194,235				—
	Interest income				22,939				8,606				12,019				334
		Net other income			20,359				8,606				206,254				334
		Net income (loss)		$	(443,323	)		$	(514,037	)		$	53,685			$	(105,538	)

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																			Accumulated
			Common Stock																Other
											Accumulated				Comprehensive				Comprehensive
			Shares				Amount				Deficit				Income (Loss)				Income				Total
Balance, January 1, 2003				10,000,000			$	30,422			$	(149,156	)		$	—			$	—			$	(118,734	)
	Distributions to stockholders			—				—				(222,687	)			—				—				(222,687	)
	Net loss			—				—				(514,037	)			(514,037	)			—				(514,037	)
	Comprehensive loss														$	(514,037	)
Balance, December 31, 2003				10,000,000				30,422				(885,880	)		$	—				—				(855,458	)
	Distributions to stockholders			—				—				(504,975	)			—				—				(504,975	)
	Unrealized gains on marketable securities			—				—				—				83,205				83,205				83,205
	Net loss			—				—				(443,323	)			(443,323	)			—				(443,323	)
	Comprehensive loss														$	(360,118	)
Balance, December 31, 2004				10,000,000				30,422				(1,834,178	)							83,205				(1,720,551	)
	Distributions to stockholders (unaudited)			—				—				(599,505	)			—				—				(599,505	)
	Realized gains on marketable securities (unaudited)			—				—				—				—				(83,205	)			(83,205	)
	Net income (unaudited)			—				—				53,685				53,685				—
	Comprehensive income (unaudited)			—				—							$	53,685				—				53,685
Balance, March 31, 2005				10,000,000			$	30,422			$	(2,379,998	)						$	—			$	(2,349,576	)

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													Three Months ended
					Years Ended December 31,								March 31,
					2004				2003				2005				2004
													(unaudited)				(unaudited)
Cash flows from operating activities:
	Net income (loss)				$	(443,323	)		$	(514,037	)		$	53,685			$	(105,538	)
	Adjustments to reconcile net loss to net cash provided by operating activities:
	Depreciation and amortization					39,375				9,859				15,227				5,829
	Realized gain on sale of marketable securities					—				—				(83,205	)			—
	Decrease (increase) in operating assets:
		Prepaid advertising				(465,894	)			(152,217	)			454,730				135,840
		Other current assets				(24,709	)			(1,085	)			(7,447	)			(334	)
	Increase (decrease) in operating liabilities:
		Accounts payable				(2,899	)			11,331				214,437				(11,366	)
		Accrued liabilities				54,121				7,474				(7,208	)			18,602
		Deferred revenue				1,855,670				1,051,559				484,111				402,013
			Net cash provided by operating activities			1,012,341				412,884				1,124,330				445,046
Cash flows from investing activities:
	Purchase of property and equipment					(140,487	)			(64,616	)			(17,497	)			(53,702	)
	Purchase of marketable securities					(404,845	)			—
	Proceeds from sale of marketable securities					307,415				—				180,635				(100,000	)
	Issuance of notes receivable					(500,000	)			—				(52,000	)			(200,000	)
	Repayments of notes receivable					300,000				—				—				—
			Net cash provided by investing activities			(437,917	)			(64,616	)			111,138				(353,702	)
Cash flows from financing activities-
		Distributions to stockholders				(504,975	)			(222,687	)			(599,505	)			(35,036	)
Net change in cash						69,449				125,581				635,963				56,308
Cash at beginning of period						226,022				100,441				295,471				226,022
Cash at end of period					$	295,471			$	226,022			$	931,434			$	282,330

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1.	Description of Organization and Summary of Significant Accounting Policies

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Asset Class		Useful Life
Computers and equipment			3 - 5 years

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2.	Marketable Securities

3.	Notes Receivable

4.	Property and Equipment

		2004				2003
Computers and equipment		$	219,770			$	79,283
Less accumulated depreciation			(55,261	)			(20,206	)
		$	164,509			$	59,077

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5.	Accrued Liabilities

		2004				2003
Payroll taxes		$	58,645			$	8,593
Vacation			4,069				—
		$	62,714			$	8,593

6.	Web Site Development Costs

		2004				2003
Web site development costs		$	21,600			$	21,600
Less accumulated amortization			(15,120	)			(10,800	)
		$	6,480			$	10,800

7.	Supplemental Cash Flow Information

8.	Commitments and Contingencies

2005		$	38,823
2006			26,400
		$	65,223

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9.	Profit Sharing Plan

10.	Subsequent Event (unaudited)

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Item 13.	Other Expenses of Issuance and Distribution

SEC registration fee			$	27,880
American Stock Exchange listing fee			$	*
Printing and engraving costs			$	*
Legal fees and expenses			$	*
Accounting fees and expenses			$	*
Blue Sky fees and expenses			$	*
Transfer Agent and Registrar fees			$	*
Miscellaneous expenses			$	*
	Total		$	*

*	To be filed by amendment.

Item 14.	Indemnification of Directors and Officers

	(a)     Indemnification of directors in respect of proceedings brought by third parties (covering both legal costs and the financial costs of any adverse judgment, except for the legal costs of unsuccessful defenses of criminal proceedings, fines imposed in criminal proceedings and penalties imposed by certain regulatory bodies);
	(b)     Payment of directors’ defense costs as they are incurred, including if the action is brought by the company itself. A director in this situation would still be liable to pay any damages awarded to our company and to repay his defense costs to the company if his defense were unsuccessful, other than where the company chooses to indemnify him in respect of legal costs incurred in certain types of civil third party proceedings; and
	(c)     Indemnification of our officers who are not directors without the restrictions that apply to indemnification of directors.

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Item 15.	Recent Sales of Unregistered Securities

	1. In January 2004, we issued 600,000 ordinary shares to two institutional investors, which were accredited investors as defined in Rule 501(a), at € 4.80 per share in a private placement for aggregate cash consideration of $3,700,000. The private placement was exempt from registration under Rule 506 of Regulation D.
	2. In August 2003, we issued warrants to Europlay Capital Advisors, LLC (“ECA”), an accredited investor as defined in Rule 501(a) under Regulation D, for the purchase of up to 1,000,000 ordinary shares at an exercise price of $2.49 per share in exchange for financial consulting services provided to us by ECA. In December 2004, ECA and our company agreed to accelerate vesting of 250,000 of the remaining 500,000 unvested warrants, and cancel the remaining 250,000 unvested warrants. Accordingly, we issued a warrant certificate for 750,000 shares. Pursuant to the terms of the warrant agreement, ECA has effected cashless exercises of warrants accounting for a total of 320,000 ordinary shares at a per share exercise price of $2.49 and we, after accounting for ECA’s cashless exercises, have issued a total of 226,536 ordinary shares pursuant to the exercises.
	3.     From September 1, 2002 to September 30, 2005, we have issued an aggregate of 166,000 ordinary shares for cash consideration of $222,440 upon the exercise of warrants issued in connection with a 1998 private placement pursuant to Regulation S of the Securities Act. Of the 166,000 ordinary shares issued, 103,000 ordinary shares were issued to two executive officers in November 2004 upon exercise of warrants for cash consideration of $138,020.
	4.     In June 2005, we issued 150,000 ordinary shares to two shareholders of MingleMatch, Inc., each of which were accredited investors, in connection with our acquisition of MingleMatch. The issuance of the shares was exempt from registration requirements of the Securities Act of 1933 by virtue of Section 4(2) thereof and/or Regulation D promulgated thereunder.
	5.     In July 2005, we issued 200,000 ordinary shares in exchange for services. The issuance of securities was exempt from registration requirements of the Securities Act of 1933 by virtue of Regulation S.

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Item 16.	Exhibits and Financial Statement Schedule

Exhibit
Number						Description of Exhibit
	3	.1**				Memorandum of Association of Registrant dated September 3, 1998
	3	.2**				Amendment to Memorandum of Association dated January 10, 2005 (Name Change)
	3	.3**				Articles of Association of Registrant, as amended April 11, 2000, December 10, 2004 and September 2, 2005
	4	.1*				Form of Deposit Agreement
	4	.2*				Form of ADR
	4	.3				Specimen ordinary share certificate
	5	.1*				Opinion of Steptoe & Johnson
	10	.1**				Lease dated September 1, 2000 between Arden Realty Limited Partnership and the Registrant regarding 8383 Wilshire Boulevard (incorporated by reference to exhibit 10.1 of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.1(a)**				First Amendment to Lease, dated September 5, 2000 (incorporated by reference to exhibit 10.1(a) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.1(b)**				Second Amendment to Lease, dated January 16, 2003 (incorporated by reference to exhibit 10.1(b) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.1(c)**				Third Amendment to Lease, dated October 30, 2003 (incorporated by reference to exhibit 10.1(c) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.1(d)**				Fourth Amendment to Lease, dated May 14, 2004 (incorporated by reference to exhibit 10.1(d) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.2**				2004 Share Option Scheme
	10	.3**				2000 Executive Share Option Scheme
	10	.4**				Asset Purchase Agreement, dated November 27, 2003, between the Registrant and Point Match USA, Inc. (incorporated by reference to exhibit 10.4 of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.4(a)**				First Amendment to Asset Purchase Agreement, January 7, 2004, between the Registrant and Point Match USA, Inc.
	10	.5**				Asset Purchase Agreement, dated November 27, 2003, between MatchNet (Israel) Ltd., a subsidiary of the Registrant, and Point Match Ltd. (incorporated by reference to exhibit 10.5 of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.5(a)**				First Amendment to Asset Purchase Agreement, dated January 7, 2004, between MatchNet (Israel) Ltd., a subsidiary of the Registrant, and Point Match Ltd. (incorporated by reference to exhibit 10.5(a) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.6**				Executive Employment Agreement, dated August 12, 2004, between the Registrant and David Siminoff
	10	.7**				Executive Employment Agreement, dated October 4, 2004, between the Registrant and Mark Thompson

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Exhibit
Number						Description of Exhibit
	10	.8**				Executive Employment Agreement, dated October 4, 2004, between the Registrant and Phillip Nelson
	10	.9**				Executive Employment Agreement, dated March 1, 2005, between the Registrant and Joe Y. Shapira
	10	.10				Form of Indemnification Agreement for Officers and Directors
	10	.10(a)				List of Parties executing Form of Indemnification Agreement for Officers and Directors
	10	.11**				Deal Documents and Purchase Agreement for investment in Yobon, Inc. dated October 19, 2004
	10	.12**				Warrant Agreement, dated December 30, 2004, between the Registrant and Europlay Capital Advisors LLC
	10	.13**				Executive Employment Agreement, dated August 31, 2005, between the Registrant and Gregory R. Liberman
	10	.14*				Stock Purchase Agreement dated May 19, 2005 by and among the Registrant, MingleMatch, Inc., The Corporation of the President of the Church of Jesus Christ of Latter-day Saints, and shareholders of MingleMatch, Inc.
	16	.1**				Letter re: Change in Certifying Accountant (incorporated by reference to exhibit 16.1 of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	21	.1**				List of subsidiaries
	23	.1				Consent of Ernst & Young
	23	.2				Consent of Tanner LC
	23	.3*				Consent of Steptoe & Johnson (contained in exhibit 5.1)
	24	.1**				Power of attorney

	*	To be filed by amendment.

	**	Previously filed.

	Schedules have been omitted because they are not applicable or not required or because the information is included elsewhere in the consolidated financial statements or the related notes.

Item 17.	Undertakings

	i.     To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
	ii.     To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.

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	iii.     To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

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	Spark Networks plc
	/s/ David E. Siminoff
	David E. Siminoff
	Chief Executive Officer and President

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Name				Position		Date
/s/ David E. Siminoff   David E. Siminoff				Chief Executive Officer and President (Principal Executive Officer)		November 7, 2005
/s/ Mark Thompson   Mark Thompson				Chief Financial Officer (Principal Financial and Accounting Officer)		November 7, 2005
*   Joe Shapira				Executive Chairman of the Board		November 7, 2005
*   Michael Brown				Director		November 7, 2005
*   Martial Chaillet				Director		November 7, 2005
*   Benjamin Derhy				Director		November 7, 2005
*   Laura Lauder				Director		November 7, 2005
*   Scott Shleifer				Director		November 7, 2005
*By		/s/ David E. Siminoff   Attorney-in-fact

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Exhibit
Number						Description of Exhibit
	3	.1**				Memorandum of Association of Registrant dated September 3, 1998
	3	.2**				Amendment to Memorandum of Association dated January 10, 2005 (Name Change)
	3	.3**				Articles of Association of Registrant, as amended April 11, 2000, December 10, 2004 and September 2, 2005
	4	.1*				Form of Deposit Agreement
	4	.2*				Form of ADR
	4	.3				Specimen ordinary share certificate
	5	.1*				Opinion of Steptoe & Johnson
	10	.1**				Lease dated September 1, 2000 between Arden Realty Limited Partnership and the Registrant regarding 8383 Wilshire Boulevard (incorporated by reference to exhibit 10.1 of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.1(a)**				First Amendment to Lease, dated September 5, 2000 (incorporated by reference to exhibit 10.1(a) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.1(b)**				Second Amendment to Lease, dated January 16, 2003 (incorporated by reference to exhibit 10.1(b) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.1(c)**				Third Amendment to Lease, dated October 30, 2003 (incorporated by reference to exhibit 10.1(c) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.1(d)**				Fourth Amendment to Lease, dated May 14, 2004 (incorporated by reference to exhibit 10.1(d) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.2**				2004 Share Option Scheme
	10	.3**				2000 Executive Share Option Scheme
	10	.4**				Asset Purchase Agreement, dated November 27, 2003, between the Registrant and Point Match USA, Inc. (incorporated by reference to exhibit 10.4 of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.4(a)**				First Amendment to Asset Purchase Agreement, January 7, 2004, between the Registrant and Point Match USA, Inc
	10	.5**				Asset Purchase Agreement, dated November 27, 2003, between MatchNet (Israel) Ltd., a subsidiary of the Registrant, and Point Match Ltd. (incorporated by reference to exhibit 10.5 of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.5(a)**				First Amendment to Asset Purchase Agreement, dated January 7, 2004, between MatchNet (Israel) Ltd., a subsidiary of the Registrant, and Point Match Ltd. (incorporated by reference to exhibit 10.5(a) of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	10	.6**				Executive Employment Agreement, dated August 12, 2004, between the Registrant and David Siminoff
	10	.7**				Executive Employment Agreement, dated October 4, 2004, between the Registrant and Mark Thompson
	10	.8**				Executive Employment Agreement, dated October 4, 2004, between the Registrant and Phillip Nelson
	10	.9**				Executive Employment Agreement, dated March 1, 2005, between the Registrant and Joe Y. Shapira

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Exhibit
Number						Description of Exhibit
	10	.10				Form of Indemnification Agreement for Officers and Directors
	10	.10(a)				List of Parties executing Form of Indemnification Agreement for Officers and Directors
	10	.11**				Deal Documents and Purchase Agreement for investment in Yobon, Inc. dated October 19, 2004
	10	.12**				Warrant Agreement, dated December 30, 2004, between the Registrant and Europlay Capital Advisors LLC
	10	.13**				Executive Employment Agreement, dated August 31, 2005, between the Registrant and Gregory R. Liberman
	10	.14*				Stock Purchase Agreement dated May 19, 2005 by and among the Registrant, MingleMatch, Inc., The Corporation of the President of the Church of Jesus Christ of Latter-day Saints, and shareholders of MingleMatch, Inc.
	16	.1**				Letter re: Change in Certifying Accountant (incorporated by reference to exhibit 16.1 of MatchNet, Inc.’s registration statement on Form S-1 (file no. 333-117940) filed with the Securities and Exchange Commission on August 4, 2004)
	21	.1**				List of subsidiaries
	23	.1				Consent of Ernst & Young
	23	.2				Consent of Tanner LC
	23	.3*				Consent of Steptoe & Johnson (contained in exhibit 5.1)
	24	.1**				Power of attorney

	*	To be filed by amendment.

	**	Previously filed.