netLibrary is a Division of OCLC ICOLC UPDATE Portland, Oregon April 18, 2002 netLibrary is a Division of OCLC

“The State of the Union” Sale of netLibrary to OCLC completed January 2002 A Division of OCLC Our charter, business model, and day-to-day operations remain largely unchanged Synergies in support services being implemented netLibrary brand will continue Sales, customer support, product and related services delivered through netLibrary in Boulder Most distribution relationships remain in place with the additional support of OCLC to sell internationally

netLibrary’s Fit with OCLC eBooks complement OCLC’s FirstSearch Electronic Collections Online eBooks support and enhance OCLC’s forthcoming 24 x 7 reference service (Joint initiative with the Library of Congress) Coordination of cataloging efforts eBooks support OCLC’s long range vision of growing WorldCat to become a global digital archive Vision OCLC will be the leading global library cooperative, helping libraries serve people by providing economical access to knowledge through innovation and collaboration

Product Update Fully Functional Site Before, during, after transition Solid Infrastructure Stable, scaleable New Features and Functionality TitleDirect™ launched at Midwinter ALA Enhancements Continued to be made (Bookmarking; Multiple Open Books) Reporting projects underway Ensure report accuracy Assess usefulness of current reports Assess reporting requirements going forward Data Warehouse Link databases for more robust reporting and better data accuracy

Product Update – It’s Still About Content More than 315 publishers More than 3700 titles added between July 2001 and March 2002 Move to PDF viewed as extremely positive Renewed Publisher Interest New Publishers: Greenwood, Kluwer, ICON Group, Peter Lang Publishing Committing additional titles: ABC-CLIO, Algora, Cambridge University Press, University Press of Colorado, Columbia University Press,Walter de Gruyter, Duke University Press, Houghton Mifflin, Indiana University Press, MIT Press, New York University Press, Oxford University Press, Perseus Books Group, SUNY Press, Taylor & Frances, Texas A & M, World Scientific Committing 100% of titles for which electronic rights are cleared: AMACOM, BMJ Books, University of California Press, Jossey Bass, IDEA Group, Lawrence Erlbaum, John Wiley US and UK, McGraw Hill Content Focus: Science, Technology, Medicine, Business, Management, Economics, Computer Science Calendar Year Goal: 15,000-18,000 new titles added to the catalog

New Titles: July 2001-March 2002 More than 3,700 titles added to the netLibrary catalog Publication Year Number of Titles % of Total 2000-2002 2,101 57% 1998-1999 961 26% 1990-1997 534 14% 1993 & Earlier 122 3% Total Added 3,718 100%

New Titles: July 2001-March 2002 Top 10 subject areas Subject Area Number of Titles % of New Titles Added Economics & Business 795 21% Medicine, Health Wellness 351 9% Education 247 7% Technology and Engineering 249 7% Literature 235 6% Sociology 154 4% History 173 5% Law 165 4% Political Science 123 3% Computer Science 145 4% Total Top Ten 2,637 71% All Other 1,081 29% Total 3,718 100%

Usage Data Titles in Use Usage data now becoming meaningful Analyzed a 12-month time frame Compared results under various scenarios New Collection Established Collection eBook MARC records loaded Amount of eBook promotion within the library Top 100 “most active” accounts have a range of 3.5 - 35 accesses/title Shared collections: Average 7.0 accesses/title Unique collections: Average 4.7 accesses/title All netLibrary customers’ average accesses All types of collections: Average 2.5 - 3 accesses/title

Progress with Alternative Access Models Publishers demonstrating interest Willing to test alternatives under controlled conditions Results from California State University System are encouraging March 2001-December 2001 Unique, owned, one book/one user collection: 2.8 accesses/title Leased, simultaneous multiple access collection: 3.4 accesses/title Wiley - Subscription ABC-CLIO – Unlimited access Kluwer – Subscription McGraw Hill – Simultaneous access for business collection sold to corporate libraries. The various models are not mutually exclusive

Revised Pricing Two Components: Content Content Support Services Hosting, serving, access and overall site management Management of changes to collections Robust search functionality, with upgrades OCLC eBook MARC records Library Resource Center (Library & patron support) Usage data Online collection development, acquisition, deselection tools Integration with existing systems Availability through recognized distribution channels Librarian and Patron (customer) support Embedded dictionary

Revised Pricing Content Based on publisher-specified retail pricing Content Support Services a) Prepaid Ongoing Access 55% of retail price of the content purchased Payable at time of purchase b) Annual Service Fee 15% of retail price of the content purchased Payable at time of purchase and annuall on the anniversary of the purchase Conversion from Annual Fees based on prorated recognition of To Prepaid annual fees previously paid

Focus on the priorities Continue to build the catalog with new, front list content Pursue greater adoption of eBooks within libraries through expanded and new collections Expand general understanding of the role of eBooks within libraries Blend cultures, retaining the best of each Function Efficiently Manage to budget, work smarter, smaller staff, smaller quarters Understand where, how, and when specific areas of integration with OCLC benefits the market Continue to pursue and develop the eBook market with our own advisory and decision-making processes Plan for the Future Continue to forge relationships with publishers in developing new models Working with OCLC planning groups Identify growth opportunities or better ways to meet library needs through new or bundled products and services

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