Alex Lin President ,Industrial Automation Group April 20, 2004 Advancing eAutomation Advantech Technology, Products, and Partners Development Strategy Alex Lin President ,Industrial Automation Group April 20, 2004

Industrial Automation eAutomation Embedded/Web 2000 Unbind Automation eAutomation Revolution in Automation…. PC 1990 Empower Automation PLC 1980 Simplify Automation Since relay was applied to control equipments, the “Automation” age is coming. When micro-processor was invented, everyone started to apply it into automation application. The micro-processor not only reduces controller size but also simplify the automation. This is the PLC – “Programmable Logic Controller”. PLC become the major force of current automation. But, since 1980 age, when PC & Windows show dynamic graphics at HMI software, PC starts to entry automation area. With PC evolution, PC brings more powerful computing, display and communication to empower automation application. Whatever, it still is an automation island and it is not efficient at internet age. Now, thru internet technology to integrate real-time automation information and business information is becoming business’s competition advantage. Thru internet technology, you can monitor, maintain and diagnose automation at anytime, anywhere. So, we believe internet technology will make automation boundless and become the next wave of automation. For this new automation trend, we would like to give it a name - “eAutomation” Relay 1970

eAutomation- Unbind your Automation Ethernet simplifies automation architecture Web-HMI becomes eBusiness enabler Open embedded system brings PC-technology to the factory Control moves to smart I/O block Smart Ethernet device becomes the mainstream Laboratory SCM Notebook CCR ERP WAP eWorld eAutomation How eAutomation make automation boundless? There are four major driving force. The first one is “embedded Ethernet”. Ethernet is the standard connection in the computing world now. Everything is almost built with Ethernet capability. From networking card to chip, one 3-in-1 Ethernet chip can be easily designed into PLC or control equipments. The second driving force is web technology. Simple embedded web server make real-time data displayed in HTML format at browser. Add-on XML technology easily exchange automation information with business information. And, Microsoft .NET evolution provide boundless service thru internet in the future. The third driving force is embedded OS – Windows CE or Linux. It solves the major bottleneck of PC to automation, that is “Reliability”. With Windows CE & Linux, the PC system can be fan-less, without hard-disk. It does a big jump in reliability. The last one is “SOC – System-On-Chip”. SOC bundles previous three forces in one chip and make each eAutomation equipment be an intelligence devices. HWI Home PC UNO-2000 ADAM-6000 ADAM I/O system WebOIT VBOX-3000

Advantech eAutomation Roadmap Fully eAutomated Intelligent automation devices functioning interactively on a distributed Ethernet Industrial Network Phase III +5-10 Years Become the leading eAutomation provider Today Integrate legacy devices into Ethernet networking Ethernet Connectivity Value-Added Product & Service eAutomation Appliance Value-Added Product & Service Phase II Ethernet Connectivity Build Simple Networking Phase I These driving forces are coming true step by step and they make eAutomation’s paradigm shift stage by stage also. When “embedded Ethernet” is becoming true today, every automation device is connected by Ethernet. You can easily find almost each new automation product is built with Ethernet communication port. Even legacy RS-232 automation devices, you can easily find Ethernet-to-RS-232 data gateway products on the shelf. Based on Ethernet connectivity, The web technology – “HTML, XML, .NET” brings more value-added benefits to automation system. These value-added service includes remote monitoring, maintenance and diagnose at anytime and anywhere. It not only save cost for business but also create business’s competition advantage. In the future, while SOC is coming popular, every automation equipment will be an intelligent device and the automation system will become distributed system in internet. Next, I would like to talk about each phase more detailed.

Evolution of eAutomation Role of Human Human Interaction Role of Device Decision Making by Human, Simple Execution by Device Phase I Monitor & Analyze Decide Act Frequent Complex Using Device Language Network Port Collect Data Simple Net Server Strategic Analysis by Human, Complex Execution by Device Phase II Analyze Decide Check Upon Demand Simplified Using Web Language Visualization Data Collection Monitor / Control Rule Setting by Human, Smart Task Performed by Device Phase III Define Rules Evaluate Notified Based on Business Needs Using Business Language Artificial Intelligence Field Commander Monitor / Control

Advancing eAutomation on Factory Floors Open Embedded Controller Distributed Control I/O Web Ethernet I/O Video over IP Web HMI/SCADA S/W Alarming Ethernet Central Control Room Factory Building

Technology and eAutomation Platform Development Apply the mature eConnectivity, information technology from the eWorld. Leverage the unique efficiency of embedded service from design to manufacture in Asia. Transform and embed the automation know how from technology alliance, Advantech in-house design into open system platform. Synergize eAutomation platform and solution partners in the worldwide service. Automation Know-how System-On-Chip Embedded-Computing Web Technology

Product Development Example – PAC (Programmable Automation Controller) Open platform provides wider data computing/integration, multi-discipline control (sequential, motion and process), and visualization via the Ethernet/internet Control Data & Integration Visualization PC-based Automation PLC & DCS Programmable Automation Controller

Technology Synergy – PAC (Programmable Automation Controller) Scalable platform from SOC (System-On-Chip), embedded computing, web-enabled networking UNO, TPC and ADAM-8000 controller series Embedded know how from technology partners Fieldbus communication SoftLogic control software Wireless networking Value-add with eAutomation solution partners Value-add with eAutomation Solution Partners Fieldbus Comm. Softlogic Software Wireless Network UNO Series TPC Series ADAM-8000

eAutomation Platform & Focus Market EMS FMS/BA ITS/IVS FA MA/ATE Target Markets eAutomation Solution & Channel Partner Global Product Sales & Marketing Industrial I/O 3U CompactPCI Low-profile Universal PCI I/O Cards Motion Control Cards Signal Conditioning LabVIEW / MATLAB DasyLab / DAQView eAutomation ADAM I/O System Industrial Converters UNO Digital Video Server WebLink/WebOIT A-Studio, ADAMView, SoftLogic Product Segments Industrial Communication Industrial Computing Platform Ethernet Data Gateways Fieldbus Interfaces LCD Panel Display HMI Workstation Embedded & Web Technology

eAutomation Solution Partner Program- eASP Program Building/Facility Management System Environmental Monitoring System Intelligent Transportation System Factory Automation Machine Automation Work collaboratively with Advantech to deliver field proven, value-added solutions to the automation industry. Promote your solution through Advantech’s worldwide value-added channel partners network.

Critical Factors for Business Success Customer’s expectation and needs for value-added service is growing yearly 2. Need flexible solutions to meet customer-oriented project demands that require long term support 3. Only the leading companies with committed partners can enjoy profitable business Service Expected 100% 80% 60% 40% 20% 0% 1970 1980 1990 2000 2010

Our Commitment to eAutomation Premier Partners Advancing eAutomation branding 2. To build long term repeat business base with partners, mutual commitment in segments such as products, markets, applications, etc. 3. To leverage effective global support and success to meet local needs 4. To provide premier financial support in committed segments 5. To invest eAutomation Competence Center to support partners in big project developments

Global eAutomation Success for Your Local Business Needs RMA/ Logistic Website Customization eStore eAutomation Mall Global Support Competence Center Partner Zone eAutomation Premier eAutomation Solution Partner Application Story eAutomation Day

Success Partnership with Geveke Growth Business Commitment Joint Solution Brochure together 2004 Winning trust for eAutomation Biz. 2003 Win-Win Success Launched Partner Program 2002 Establish Partnership 2000 Marketing Sponsor B2B & Partner Zone Pricing Strategy

Geveke eA Business Trend - by Product Division Total  33% Total 73% 25% 104% 31% 47% 38% 93% 46% 31%

Advancing eAutomation Thank You eAutomation Platform eAutomation Day eAutomation Channel Partner Advancing eAutomation Partnering for Success Thank You eAutomation Premier Partner eA Competence Center eAutomation Solution Partner