Colortrac background Company and products Confidential Colortrac background

Colortrac background Company and products Confidential

Colortrac background • LF scanning is Colortrac sole business – Since 1990 – Design and manufacture mono and colour LF scanners and software for technical documents and graphic arts markets • Scan to file (archive, cleanup, batch) • Scan to print (copy - print while scan) • Mono and colour Confidential

Colortrac background • UK Company - Headquarters in UK • Sales/support offices in – – Cambridge, UK Chantilly, Virginia USA Beijing, PRC Distributors in 60+ countries worldwide • All design/development headquartered in UK • Colortrac’s own manufacturing sites in Suzhou PRC and UK Confidential

Colortrac background • All products prior to Smart. LF series were CCD-based (large) – “High end” and “very high end” – Colortrac acknowledged as high end colour scanners – Large % of high end scanners were being used for mono applications!!!!! – Hence the low cost CIS range introductions • CX 40 (600 dpi) • Ci 40 and Ci 24 (600 dpi) ranges • Gx+ 28/42/56 (1200 dpi) ranges Confidential

Colortrac background • Smart. LF range provides full feature set specific to application requirement – Ci and CX ranges for Technical Documents – Gx+ range for Graphic Arts and high quality Technical Documents Confidential

MARKETING Confidential

Document Types • Technical documents (information documents) – – – Engineering drawings Urban layouts Architectural drawings Maps (information) Manufacturing drawings • Graphic arts (decorative / display documents) – – – Presentations Advertising Displays Maps (high colour importance) Fine arts Thick media Confidential

Market segments Tech Documents Graphic Arts $$ Full Colour specialty applications §Mono applications with colour Market Size Functionality + colour content Confidential

Customers • Architects • Construction • Local government – planning applications – urban layouts • National government – survey commission – defence departments – general GIS departments • • • Legal firms Museums / libraries Copy shops Reprographics bureaux More Confidential

Scan Application Requirements Lowest cost Best colour requirement Document cleanup tools Colour management software Scan-file, copy ICC profiling Batch Scan-file & Scan-print (copy) Acceptable colour Fine line capability Productivity $$ Graphic Arts Tech Documents Functionality + colour content Confidential

Best technology/price fit Colortrac CX and Ci Series Colortrac Gx+ Series (CIS Technology) (CCD Technology) $$ CIS = Contact Image Sensor (solid state sensor) • Sufficient colour gamut • Sharp focus CCD = Charge Couple Device (optical camera) • High colour gamut Tech Documents Graphic Arts Tech Documents • High resolution Note: Gx+ Series now also suitable for technical applications due to its high speed spec Functionality + colour content Confidential

COMPETITORS Confidential

Competitors • • Contex Graphtec (Widecom) Others (system manufacturers) Confidential

Competitors • Contex – – – – – The largest in terms of overall sales including OEM (HP, Océ) Danish company Later into the market than Colortrac Other non-scanning products – large manufacturing base and skill (but potentially costly in Denmark) CCD only until late 2008 (1 st generation) Strong market presence across all continents OEM arrangements with HP, Océ A confusing range of products (too many? ) Now also includes the Vidar range (acquisition) – confusing – Vidar brand dropped in 2009 Confidential

Competitors • Contex – Plus: • Strong manufacturing experience • Strong awareness in market • Good image quality – Minus: • Complicated product range • Over-distribution (channel conflict and price pressure) • CCD only (= expensive) until 2008 – cost loading for technical markets Confidential

Competitors • Graphtec – – – Number 3 in terms of channel sales Traditionally weak distribution channels in most countries (why? ) CIS only (@600 dpi) – good mechanical drive OEM relationship with KIP Japanese manufacturing company – scanning is a small part of the overall business – Scanning division recently bought out by ? ? – Solid product with few product variants – not accepted ion graphic arts areas – Weak paper handling and software Confidential

Competitors • Graphtec – Plus: • Strong manufacturing experience • Good mono image quality – Minus: • Low awareness / channel presence • Colour image quality not suitable for graphic arts applications • CIS only • Software applications weak • Paper handling weak Confidential

Competitors • Others – Few systems manufacturers also include their own scanner or a no-name OEM scanner – Usually do not sell such scanners as stand-alone – Ricoh (mono only), Xerox Synergix, Océ, others Confidential

Competitors • Systems manufacturers – Plus: • Sold/supported with complete system – Minus: • Price • Flexibility? • Choice of scanner technologies for different applications? Confidential

Competitors Technology Used • • Contex Vidar (Contex) Graphtec (Xerox, KIP, Ricoh) • Colortrac CIS (2008) CCD CIS CCD Various OEM CIS CCD Confidential

PRODUCT STUFF Confidential

Historically: Various Product Lines Eagle Series Evolution Series Technical Documents Series 3, Series 4 Graphic Documents Series 3, Series 4 A 0 Flatbed Confidential

Now: Three Linked Product Lines Eagle Series Evolution Series Technical Documents Series 3, Series 4 Ci 24, Ci 40 Graphic Documents Series 3, Series 4 A 0 Flatbed CX 40 Gx+42, Gx+25, Gx+56 Confidential

Smart. LF Model Differences Applications Cx 40 / Ci 40/24 Gx+ Series Suitable Markets AEC/Construction Engineering Local government Repro shop GIS & mapping Graphic arts Signage Engineering Fine arts Repro Shop GIS & mapping Document Types Technical Documents Mono with colour Information content Content -critical Graphic arts documents Full colour content Decorative content Appearance -critical Market requirements Colour performance Good gamut, sharp focus Speed Line definition Suitable colour Price/performance Simple software Threshholding/ filtering/edit Colour performance Thick media handling Competent software Colour management Wider scans High gamut, high resolution Confidential

Smart. LF Model Differences - Technical Cx+ 40 / Ci 24 Gx+ 28 / 42 / 56 Technology CIS – solid state CCD – optical cameras Performance Sharp lines Deep colours Sensors Staggered - 5 (Ci 24 has 3) In-line - 4 / 6 / 8 Illumination LED Warm up - ready to use Immediate Stitch management Front back Left right Document thickness 2. 0 mm for Cx - 0. 3 mm for Ci models 20 mm (T model) Speed Fastest Resolution 600 x 600 dpi optical 1200 x 1200 dpi optical Interface USB – all models. Ethernet - Ci models USB and Ethernet - all models Energy Star All Ci models (Ci 24 pending) All models Software All in One – standard with all scanners Copy. Smart and Scan. Works - optional Confidential

Product Summary • Cx+ 40 – – – • Gx+28 / Gx+42 / Gx+56 – – – – • Tech documents CCD Scanner GA and tech documents 28/42/56” document width 1200 dpi optical resolution Mono or colour – field upgradeable In-line CCD devices (Gx+ 42 model has 6 - Gx+28 has 4 – Gx+56 has 8) Unique bi-directional LED illumination – NO warm up stabilisation time before first scan Single glass per scanner USB/Ethernet, Energy Star on all models Ci 40 (Ci 24) – – – CIS Scanner 40” document width 600 dpi optical resolution Mono or colour – field upgradeable 5 CIS arrays– solid state illumination – no warm up time before first scan USB CIS Scanner Tech documents 40” (24”) document width, paper documents 600 dpi optical resolution Mono or colour – field upgradeable 5 (3) CIS arrays – bi-directional LED solid state illumination – no warm up time before first scan Face-up scanning – front entry/exit USB/Ethernet, Energy Star • • • Scan. Works software Copy. Smart software Smart. LF software • Scan. Works and Copy. Smart softwares suit all Colortrac scanner models Optional Scan-to-file software Optional Scan-to-print, copy software Included scan and copy software with every scanner * “T” version scanners have thick media handling capability – up to 20 mm doc thickness Confidential

Product Summary • All models are available in three versions – m models for black and white scanning – c models for black and white with colour scanning – e models for black and white with fast colour scanning • Each model is field upgradeable to the next (m/c/e) model via simple firmware download) • Gx+ 42, Gx+ 25, Gx+ 56 also available as “T” configurations to include thick media capability (up to 20 mm document thickness) Confidential

How it Works PC Host (Operator I/face) Local LF Printer or MFP Smart. LF Scanner USB 2 Copy. Smart USB 2 or Colortrac components Copy to CD Scan. Works Network Printers TCP/IP Other document users Archive servers R -V Conversion Document Management Post-scan applications provided by third party vendors Confidential

Product Internal Block Host PC Scanner Optical devices Switches / sensors CIS or CCD Applications software USB Main Processor Board Mechanical components Scanner Driver Power Supply 110/220 V Confidential

Colortrac Software Solutions • Smart. LF All-in-One standard with all scanners – Scan to file / print / email – Windows drivers – very simple to use • Scan. Works – professional level scan to file with intelligent document cleanup • Copy. Smart – professional level copy Confidential

Colortrac Software Solutions Scan. Works Archiving, document edit and cleanup • Sharpen • Colortrac IAT document cleanup • Noise reduce/add Blur • RGB colour adjust • White/black point adjust • Deskew • Rotate • • Crop Mirror Invert Colour depth reduce Contrast / brightness adjust • Batch scanning – indexing • Numerous file formats Confidential

Colortrac Software Solutions Copy. Smart Single button LF copy solution • • • ICC Profiling / Colour management Numerous LF printers supported by Colortrac drivers Automatic image resolution selection Preview selection – crop and scan Printing starts as soon as document scan starts – that’s fast!!!! Confidential

TECHNICAL Confidential

The Environment • Energy Star compliance (Ci, Gx+ Series) (Ci 24 pending) • Instant-on scan capability on all models means no warm up time • Solid state illumination means no more mercury filled fluorescent tubes • Totally new electronics (EEC/ Ro. HS lead compliancy etc) • Solders and finishes do not contain lead (Pb) and other high-toxicity elements / chemicals • There is a warning to customers to think about disposal of consumables and the product at end of its life (WEEE Confidential

Thresholding What is “threshholding”? ANSWER: - A level applied to greyscale data to separate interesting data (black) from the background (white) What is Colortrac’s IAT? ANSWER: - A more advanced threshholding type where the level to separate black from white is continually altered in response to the background darkness. All Colortrac scanners operate on a common set of software suites. IAT is featured across the scanner range View this feature on video at http: //www. colortrac. com/wide-format-scanner-movies. htm Confidential

Colortrac Our Business is Your Image www. colortrac. com Confidential