13D Filing: Great Point Partners and Connecture Inc (CNXR)

Page 20 of 22

Page 20 of 22 – SEC Filing

period, and the health care market has
remained stable, growing 3% over this time, the value of Connecture’s share price has tumbled by nearly 80%.

Call to Action to Drive
Stock Price Improvement

As a result of Connecture’s continued
execution issues and operational missteps, shareholders have greatly suffered. We view the status quo as unacceptable to shareholders
and it should be unacceptable to you and the Board as well. It is imperative that you plan to materially alter Connecture’s
strategy and improve execution for the benefit of the Company and all its shareholders or, failing that, seek a sale of the Company.
Connecture needs real improvements and can no longer work in half-measures. We believe that there are several actions which could
be undertaken in order to drive such performance, including the following:

1. Break Up the Company into Two Distinct Operations. The original DRX business, which
appears to now also hold the Private Exchange business, is a radically different business than the legacy Commercial Enterprise
and withering State Exchange businesses. Being built on a SaaS backbone, the DRX platform, in our view, should have a significantly
higher margin profile than what is currently being achieved at Connecture. Based on our analysis of the cost structures and margin
profiles of publicly traded companies with similar operating characteristics, our analysis indicates that DRX should be able to
achieve gross margins in excess of 65% and EBITDA margins of 20% to 30% on a standalone basis. Applying this margin profile to
the LTM Medicare and Private

Follow Connecture Inc (NASDAQ:CNXR)

Page 20 of 22