Retail Store Solutions Sure POS 300 Express IBM

Retail Store Solutions Division Agenda § POS Requirements § IBM in Retail § IBM

Retail Store Solutions Retail Environment – POS Expectations POS is “Mission Critical” Support for Retail Specific I/O Ergonomic Design of the Retail Workstation Open Standards Based Integration with the Enterprise IT Structure Service and support IBM February 2005 © 2005 IBM Corporation

Retail Store Solutions IBM Retail Store Solutions § Largest part of the IBM Global Retail Industry § Leader in POS systems worldwide – Has been the world’s #1 POS vendor since 1992, with over 2 million POS installed in over 100 countries § Leader in POS innovation – IBM has led the world for 11 years with 3, 415 patents in 2003 – RSS has the highest patent per capita rates in IBM • Introduced the industry’s first programmable, modular and PC-based POS systems • Patented the barcode and holographic scanner • Developed the first purposed-optimized, thin-client OS • Powered USB, RFID, Electronic Shelf Label and Printer improvements § Over 500 people focused on support, sales and development § Strategic partner with majority of top retailers worldwide – 65% IBM of the top 100 retailers use IBM POS © 2003 IBM Corporation

Retail Store Solutions IBM Sure. POSTM Hardware Portfolio Sure. One Sure. POS™ 300 Series Sure. POS™ 500 Series Sure. POS™ 700 Series Sure. Point™ Displays Sure. Mark™ Printers Additional POS I/O IBM February 2005 © 2005 IBM Corporation

Retail Store Solutions IBM Sure. POS System Hardware Integrated Form Factor Modular Form Factor Premium Sure. POS 500 Value Sure. POS 700 SMB Express Offerings Basic Sure. POS 500 Express Sure. One Sure. POS 300 Express (AP only) IBM February 2005 © 2005 IBM Corporation

Retail Store Solutions Why Express? • A comprehensive line of hardware, software, services and financing solutions designed, developed and priced specifically to address your business challenges. IBM delivers technologies to SMB Retailers that are: Easy to Acquire Retail’s most experienced partner. Easy to Install and Manage Versatility and compact design, can be implemented standalone or centrally managed. Quality and Performance at an Affordable Price The power and performance expected from IBM at a remarkably price. IBM © 2002 IBM Corporation

Retail Store Solutions It’s a Solution… Sure. POS 300 Express 4910 -32 H IBM Suggested Retail Price $1, 999* Sure. POS 300, model 32 H PS/2 ANPOS keyboard Full-size cash drawer with fixed till insert Sure. Mark printer, model TG 3 Suggested Display: 15” Think. Vision display IBM United States** Announce date March 1, 2005 General Availability March 25, 2005 **Planned WW Announcement – 1 Q © 2003 IBM Corporation

Retail Store Solutions IBM © 2003 IBM Corporation

Retail Store Solutions Sure. POS 300 Express 4910 -32 H Technology 1. 2 GHz VIA C 3 Processor 256 MB SDRAM memory 40 GB IDE hard drive 1 PCI slot (half-length) 6 RS 232 ports (2 powered) 1 cash drawer port PS/2 keyboard and mouse ports VGA video subsystem and port Ethernet 10/100 Integrated audio IBM © 2002 IBM Corporation

Retail Store Solutions Solution Support Linux: IRES Windows 2000, XP Professional Windows XP Embedded,

Retail Store Solutions Sure. Mark POS Printers • Advanced Technology helps Retailers reduce expenses • Fast thermal printing enables printing logos, barcodes, etc. • Check franking on second impact station • Reliability & Ease of use • Superior materials – thicker metals, higher quality plastics • Superior designs for ease of use and far superior serviceability • Designed by IBM • Investment Protection • Only IBM offers free new functions via firmware updates • OS automatically updates printer firmware • Multiple emulation modes minimize re-programming • Protocol converters enable non-IBM POS accounts to upgrade printers IBM © 2002 IBM Corporation

Retail Store Solutions Proven Solutions 2005 | IBM © 2002 IBM Corporation

Retail Store Solutions “IBM Financing Advantage” Rapid Financing § For new, simple transactions under $300 K § Two EZRate cards (under/over $100 K updated twice yearly § 1 hour credit & contract turnaround; 15% variance w/o re-contracting § Under $100 K: No Certificate of Acceptance, pass/fail credit § EZRate Quoter simple offline tool (Excel spreadsheet) IBM © 2003 IBM Corporation

Retail Store Solutions In Conclusion…. Why IBM Point-of-Sale? Experience in Retail Ø IBM Retail Store Solutions has been in the business for 30 years Market Leadership Ø IBM RSS is the undisputed worldwide leader in POS Ø IBM RSS has 60 of the top 100 retailers as customers Worldwide Presence Ø IBM has over 2 million POS terminals installed in over 100 countries Technology Leadership Ø IBM holds the most patents in the industry Environmentally hardened design Ø IBM POS hardware is specifically built and tested to withstand the rigors of harsh point-of-sale environments Worldwide Network of Business Partners IBM © 2003 IBM Corporation

Retail Store Solutions Thank You Back-up slides follow IBM © 2002 IBM Corporation

Retail Store Solutions The marketplace takes a variety of approaches to defining SMB, and typically focuses mainly on revenue and / or headcount for market segmentation Source: Aberdeen Group - “The Small and Middle Market Enterprise: Addressing Today’s Business Issues Through Technology”, 5/2003 IBM © 2002 IBM Corporation