XL1200 Training

Packaging Graphic Arts Product Portfolio Packaging Graphic Arts Super Wide Format Wide Format Flatbed FB6700 XL1200 Grandjet S+ 5,3 TJ8300 Superjet FB6300 Grand Pressjet II Idanit Novo Phase out Confidential

SWF Applications

SWF Product Offerings 2003 Price vs. Performance XL1200 5m List Price 3m Grandjet S+ 2m Grand 4 colors 8 colors Applications & Performance

HP Scitex XL1200 Confidential

Introduction The HP Scitex XL1200 is the second generation to the successful HP Scitex Vision XLjet product line. HP Scitex XLjet product line installed base, world wide, is over 180 systems. (HP IIDE 72, HP IIDA 49, HP IIDAP 39, HP IIDLA 28) All XL1200 new features and capabilities are offered as an upgrade option, to all our loyal XLjet customers. Confidential

} Main Features 2, 3, 5m (7.2, 10.5, 16.4 ft) system sizes RTR, RTS (free fall) Up to 95 sqm (1,023 sqft) per hour 4,6,8 Switchable Colors (CMYK, LC, LM, LY, LK) “Sample mode” - sharp 8 point text “Import file while printing” ability } Upgradeable !

Double-sided printing; backlit Wide media versatility Onyx RIP Main Features (Cont.) Up to 740X370 dpi Double-sided printing; backlit Wide media versatility Onyx RIP Multi-roll IR drying unit Auto maintenance XL200 Supreme XL100 S/C inks Confidential

XL1200 Advanced S/W Switchable 4, 6 and 8 colors Load files to the system Q while printing Tiling to columns or rows Crop files Flip files for backlit jobs Color correction tools Queue and archive File info (also in multi-roll) Printing time remaining bar Ink level screen Media Tracking Auto maintenance

Load File While Printing Image size Application # colors Dpi File size Loading time (Minutes) 1.6m x 2.2m Signage 4 185 100MB 1 5m x 5m Billboard 370 600MB 10m x 5m 8 1.5 GB 9 10m x 10m Vehicle wrapping (tiles) 5GB 15 Confidential

Competition Real Throughput: Production Modes Presented Throughput (sqm/hr) Loading minutes (% per 1 hour) Real Throughput (sqm/hr) Nur Fresco 3200 HiQ 102 10 minutes (16%) 85 69 51 Vutek 3360 EC 123 20 minutes (33%) 103 83 62 Vutek 2360 EC 93 30 minutes (50%) 78 63 47 Confidential

Competition Real Throughput: Quality Modes Presented Throughput (sqm/hr) Loading minutes (% per 1 hour) Real Throughput (sqm/hr) Nur Fresco 3200 HiQ 33 10 minutes (16%) 28 22 17 Vutek 3360 EC 30 20 minutes (33%) 25 20 15 Vutek 2360 EC 30 minutes (50%) 13 10 Confidential

HP IID has ISO 9001 certificate. XL1200 has both CE, & UL approval. XL1200 4, 6, & 8 colors switchable HP IID has ISO 9001 certificate. XL1200 has both CE, & UL approval.

Includes file info on each media roll. XL1200 Multi-Roll Includes file info on each media roll.

XL1200 Backlit & Double-sided Dedicated S/W and H/W

XL1200 Advanced Drying System Controlled temperature unit

XL1200 Applications Building coverings Flex-face billboards Backlit indoor and outdoor signage POP/POS, including double-sided Popup displays Exhibition and event banners Truck side curtains Backdrops for theater, TV Textiles, including carpets Floor and window graphics Vehicle wraps

XL1200 Applications (Cont.) High quality – POP, exhibitions, backlit and D/S signs, textile Sharp 8 point text – “Sample” mode 8 colors – CMYK, LC, LM, LY, LK Backlit and D/S abilities High Production – paper & SAV billboards, bus stops, fleet graphics, truck side curtains, floor and window graphics 95 sqm/hr (1,023 sqft/hr) “Load file while printing” Multi roll, freefall

XL1200 Target Customers “One Stop Shop” printers supporting “full solution” – Advertising agencies, billboard owners, Fleet marking providers. Those who need flexible and versatile systems, to be able to switch between 4 & 8 colors and get both high-end and high throughput results. High-end graphic art producers – Photo labs, service bureaus, entrepreneurs, aiming for high quality prints, short runs, and high margins. Industrial sites – High volume producers, complementing silk screen and other digital systems, producing billboards, outdoor banners, bus stations posters, fleet graphics.

XL200 VisionInk Product status: Only HP XL200 Supreme. 8 colors is available only with Supreme inks. Upgrade to XL1200 with 8 colors is recommended with XL200 inks. Main selling points: High productivity High image quality Similar color gamut as the XL100 Supreme Reliable ink

4, 6, and 8 Switchable color system (CMYK, LC, LM, LY, LK) XL1200 Main Advantages 4, 6, and 8 Switchable color system (CMYK, LC, LM, LY, LK) “Load File While Printing” ability – maximizes the productivity “Sample” mode – sharp 8 point size text Double-sided and backlit printing abilities Multi-roll printing Roll-to-roll or Roll-to-sheet (free fall) Confidential

XL1200 Main Advantages (Cont.) Skip White feature Resolution: up to 740X370 dpi Strong controlled drying mechanism RIP: Onyx PosterShop Speed of HP Scitex XL1200 5m: Billboard quality ~95sqm/hr / 1,023 sqft/hr High quality ~28 sqm/hr / 301 sqft/hr Confidential

HP Scitex Grandjet S+ 3.2 and 5 meter (10.5 & 16.5 ft) versions High productivity for cost effective budget Most sold system in HP IID’s portfolio (over 600 units) Main Features: 4 colors Up to 74 sqm/hr (797 sqft/hr) Low investment cost Multi-roll Onyx Rip HP GR100 S/C inks Confidential

HP Scitex Grand Similar performance to the Grandjet C3 Very attractive price tag High productivity for cost effective budget Part of the Grandjet successful product line (over 600 units) Main Features: Up to 65 sqm/hr (701 sqft/hr) 3.2 meter (10.5 ft) version 4 colors 370 Dpi RTR PPS Rip GR100 S/C inks Low investment cost Confidential

SWF Product offering Grand Classic GJ S+ (3,5m) XL1200 (2,3,5m) Colors 4 4, 6 & 8 switchable Throughput 65 sqm/hr 65 sqm/hr* 85 sqm/hr* Dpi 370x370 740x370 Print heads 24 Xaar 128 32 Xaar 128 Media handling RTR RTR, Multiroll RTR, Freefall, Multiroll Drying Heating table IR & heating table Ink GR100 S/C XL100 S/C, XL 200 S Special features External media loading bar Onyx Rip, Skip white, super text mode, media optic sensor Backlit & D/S, Onyx, load file while printing Sample mode * Parameters presented use the 3m systems as an example.

Competition

SWF Market Positioning: Quality Ratio vs. Productivity Ratio Productivity (Throughput / L. price) Low Medium High Salsa Fresco BlueBoard Chinese Jeti 3300 Vutek 2600 Vutek 8C Vutek 6C Vutek 4C Small inkjets Fleet Graphics FF Billboards POP Building cover XL1200 GJ S+ GJ Classic XLjet GJ S GJ C3

Main Players Nur (950) Vutek (950) HP IID (1100) Confidential Europe & M . E 41 % USA & L America 20 Mexico 10 Asia Pacific 29 HP IID (1100) Confidential

Vutek’s Offerings – General Weak Points Most systems support average quality in high production: No Backlit or D/S printing dedicated S/W & H/W. No Queue – low overall productivity. No “Load file while Printing”. No “Skip White” option. Big amount of ink consumption and ink waste, due to spectra heads. Average drying capabilities. Low media flexibility – paper, mesh. Weak infrastructure and global support.

Nur’s Offerings Nur Fresco 3200 HiQ 8C: In 2x4 colors they reach 102 sqm/hr – soluble quality only on Mesh. In other material it shows banding. The Fresco has no multi-roll or “Load File While Printing” ability – so even if Nur claims speed of 102 sqm/hr – in real working environment the XL1200 tops that. The Fresco has no dedicated backlit or double-side option – you need a very professional operator to create a good D/S registration (Like on GJ). The Fresco has no skip white option. The Fresco has a vacuum table, which makes it difficult to print mesh and carpet materials on it (needs special procedure). We can always offer the XL1200 5m – it is more attractive than the 3m Fresco.

Nur’s Offerings (Cont.) (Salsa) Ultima HiQ 5000 8C: First presented in ISA 2003. A new system based on combined technologies (BB, Salsa, Fresco). No dedicated Backlit or Double-sided printing capabilities. The Ultima has a vacuum table, which makes it difficult to print mesh and carpet materials on it (needs special procedure). General point: Nur and Vutek are selling a system and adding required elements in separate parts of the deal. This presents a lower system price - potential customers should be aware of that.

Gandi Innovations Jeti 3300 Strong points: Easy to use, with simple user software-interface. Very high quality in 12-pass mode - rivals the VUTEk 2360 SC. Low investment cost ~$175K.

Gandi Innovations Jeti 3300 (Cont.) Weak points: Unproven reliability – $175K is still a high risk to take! Very bad media handling - slipping and uneven media tension, week structure. In order to get good quality (12 pass), the system runs at 18sqm/hr. In 6 and 9-pass, there is a very noticeable and wide banding. Problems with ink viscosity - especially very weak magenta and cyan. Backlit images are terrible and unacceptable. Very bad quality on many different and popular media types. Gandi has a doubtful reputation – he sold the “Powerjet” to Nur, than the “Salsa” operation as well, and now we know he looks for someone to buy the Gandi line. Confidential

We need to strengthen our leadership position in the market. HP IID Strategy We need to strengthen our leadership position in the market. We should avoid getting into technical features competition traps and instead focus on our total solution attractiveness: We manufacture and supply excellent systems. We manufacture and supply approved inks and media. We have WW experienced and dedicated system support teams. We support our customers not only our systems – “HP IID Academy”. We have the largest systems installed base to prove the above! WE have core technology – heads, inks, systems. We constantly have new and better systems.

Thank You! Confidential