Tablet PC – Overview Jeff Diehl Marketing Manager, Notebooks NA Access Business Group

Agenda Customer Strategy & Scenarios Compaq Tablet PC Presentation Vision Business Objective/Strategy Product Strategy Target Market Feature Summary Brainstorming & Feedback

Vision To establish Compaq as an innovation leader by developing cool, innovative and simple products and solutions that solve unique problems.

Business Objectives / Strategy Establish Compaq as the Innovation Leader by continuing a trend that was initiated with the iPAQ desktop of bringing to market cool, innovative and simple products Provide the best in customer experience Through simple and innovative products and solutions Easy to set up and to deploy Easy to manage Easy to service Set new standards for quality / reliability Breakthrough industrial design Simple offering (“less is more”) End-to-end solutions Establish partnerships as necessary to achieve these objectives Microsoft Independent Software Vendors (ISV’s)

Who/What is our Primary Target Market ? Users that: prefer the flexibility/ mobility of a notebook PC, but also carry writing paper in portfolio for note taking. are highly mobile, price conscious, place high degree of importance to style, and wants to remove the “barrier” that a PC has in meetings or classes. are executives, consultants, students, buyers, sales, data collection, service & maintenance, healthcare, insurance, law enforcement, home & small businesses. Horizontal Market Companion device or primary with peripherals (i.e external monitor/dock) Typical Users: Knowledge Worker Campus Roamers Applications: Office Productivity Vertical Markets Primary Device – may include peripheral (I.e dock) Typical Users Medical Legal Field Sales Field Automation Service Public Safety Unique Requirements Specialty Applications Environmental

Product Strategy Why develop a Tablet device? The Tablet PC extends the capabilities of traditional “clamshell” PC’s. Reduces the distraction of notebook usage in a meeting environment. Offers the opportunity to “reach” users which typically capture data in a notepad/ledger format. Medical, Legal, Education markets, Field Services, Public Safety The Tablet PC will provide customers with a device to use when creating, storing or accessing information and transactions Improves Productivity Technology advancements Low power, high performance CPU’s Low power LCD’s Battery Advances in handwriting and speech recognition Wireless Windows XP Data Collectors typically use one of the following mobile devices: personal companions, pen tablets, pen notepads, keypad handhelds and wearable devices. Typical fields of service include transportation, trucking, utility, HVAC, construction management, warehousing logistics and healthcare.

Tablet Feature Summary Current Definition with engineering Legacy free, fully integrated Features Processor Low Voltage, Low Power (currently Transmeta or Intel) Panel 10.4” TFT XGA transflective RAM 128MB – 640MB Video PCI graphics ATI M6 with 8MB VRAM Operating System Windows XP, with “Ink as Ink” technology Touch Screen Digitizer - EM Input Pen - Active Communications LOM, 802.11b (a) PCMCIA Single Type II PC card slot HDD 20GB+, 9.5mm Ports (2) USB 2.0, VGA, RJ45, RJ11, Power Security Integrated Biometrics, IPSEC Battery technology Li-Ion Battery Life 8 hours minimum Weight 2.5lbs Dimensions (x/y/z) < 8.5” x 11” x 1”

Development Priorities Priorities (compiled from customer feedback) Quality and Reliability Easy of use Battery life Weight Price Durability Ramifications Graphics are ATI M6 – great, but PCI implementation saves power. No AGP and no 3D – working with engineering

Concept Sketches

Concept Sketches

Concept Sketches

Concept Sketches

Dock Feature Summary Positioning Features Low cost cable management and access to more ergonomic keyboards and displays Features MultiBay Communications Pass-through Ethernet Ports (2) USB, VGA, RJ45, Power Security Kensington Lock Weight .5lbs (with weight saver) Orientation supports Portrait only

Product Specific Saleable Options Cradle Ruggedized portfolio and/or Leather portfolio Offers portfolio that has notebook orientation with integrated keyboard Removable keyboard depending on needs Bar Code Reader Ruggedized jacket offering barcode reader PC Card could offer barcode reader – under investigation Stylus Tether Stylus Replacement kit Screen protectors

Brainstorming Questions: Customer scenarios? Why not PDAs? Why not a notebook? Need for wireless? Business Case Where is the business case to justify the tablet in your business How is cost saved or productivity made? Tablet positioning? Full capability of notebook PC Full OS, WLAN, WWAN, VGA port , USB, etc. Confirm for Corporate primary market that this concept is necessary Webpad with communication capabilities Note taking device with 802.11

Brainstorming Questions: Product Priorities? Which to trade off first? Quality and Ease of Use Battery life Weight Price Durability Special features required? Acceptable price range Grab and go Voice recognition - dictating only? Security requirements? Portrait vs. landscape? Intel versus Transmeta

Modular Concept Alternative definition Base unit Hit a lower price, add options for features Concern that lower price and smaller size is not achievable by just trading off ports Base unit Processor Low Voltage, Low Power Panel 10.4” TFT XGA RAM 128MB - 640MB HDD 20GB+, 9.5mm Operating System Windows XP, with “Ink as Ink” technology PCMCIA Single Type II PC card slot/Security slot Communications LOM, 802.11b (a) Ports Integrated Antenna, (1) USB, RJ45, Audio in/out, Power Battery technology Li-Ion Battery Life tablet mode 9-11 hours, full power 6 hours Touch Screen Digitizer - EM Input Pen - Active Weight 2.5lbs Dimensions (x/y/z) < 8.5” x 11” x 1” Provide jackets to add WAN Jacket PC Card Integrated Biometrics, RJ11, tilt, ruggedized/panel cover, grips Data Collection Jacket Bar Code Reader, RJ11, tilt, ruggedized/panel cover, grips Corporate Jacket (1) USB, VGA, RJ11, tilt, ruggedized/panel cover, grips

Localization Language availability of Ink – GEO mix - TBD Only comes in EFGJ at launch English French German Japanese GEO mix - TBD

Configurable Modules Model 1 Low power processor,10.4” TFT/XGA Stylus/digitizer No batteries No memory 2 empty battery bays 1 empty memory slots / 128MB down 1 empty MiniPCI 1 empty integrated Biometrics RJ 45 NIC Hard Drive 20GB Common Hard drive options Communication WLAN miniPCI + modem combo No Modem WWAN PC cards Additional Memory 64MB, 128MB , 256MB, 512MB (Transmeta only) Security Integrated Biometrics Battery 4-cells Batteries Country/OS Modules Windows XP Localization = EFGJ Productivity software TBD Warranty One year – 1/1/0 Maybe service extensions

Competitive Landscape IBM Mini-Notebook/ tablet “CrossPad” notepad for handwriting recognition / electronic image transfer & a touchscreen display / interface Aqcess Obe * Power of a color Pen tablet comp. W/speech recognition Capability & a CCD Camera Keyboard/Stylus Clio * Extend your office Everywhere you go and Access corporate Databases, your PC & the Internet Keyboard/Stylus Mitsubishi * AMiTY CP Advanced Keyboard- Free Apps & Sturdy Construction for On-the-move Field workers, Handwriting Stylus Optional keyboard 5.5 lbs Performance Fujitsu * Rugged, Exceptioinal Performance, Outdoor View ability, replacement For Desktop Keyboard/Stylus 4 lbs 3 ½ lbs 2.5 lbs. * *** ** 2.2 lbs. * Wireless not mentioned In product information Weight IBM – wireless via 80211b (integrated or PC Card) under considered

Competitive Assessment Tablet PC’s are not a “new” concept Tablet devices have been on the market for nearly a decade. Typically marketed towards niche markets Existing tablet offerings prohibit mass market appeal/acceptance, due to: Weight Battery Life Technology/Performance Price