Talking points Quick overview of the JETLEADER Newsweb experience so far Scalability of print cost between offset & ink jet Variable cutoff folder for Newsweb Variable data printing for Newsweb TKS other experiences so far

Page 3 JETLEADER 1500

Quick facts JETLEADER Introduced in 2010 (3) sold in North America to date All components and workflow are TKS except the print heads

Digital Printing Inkjet Electro Static Drop-on-demandContinuous PiezoThermal Digital Printing Family Tree

Side view

7 “Cut-off” 21.5” – 32” (546mm – 813mm) “Web width” 11” – 22” (279mm –560mm)

Page 8ItemSpecRemark Print methodInkjet method, 4-color on both sidesDrop On Demand type Print speedMax. 150 m/min (492 feet/minute) Resolution600×600dpi Print widthMax.541mm (21.3”) InkWater-based pigment ink Web width279.4 mm – 560 mm (11” – 22”) gsm Cutoff546 mm – 813 mm (21.5” – 32”)Variable cut-off folder Post- processing Variable cut-off folder Multi sections (Max 5 sections) in line Max 72 pages in total, 48 pages per section OptionSheeter, Re-winder and/or Chopper folder Basic Specification

Throughputs NUMBER OF PAGES (broadsheet & Tabloid) COPIES PER HOUR # of sections (broadsheet) 87, , , , (Broadsheet)1,054Up to 5 64 (Broadsheet)922Up to 5 72 (Broadsheet)820Up to 5

Our experience so far

Who is Newsweb TKS first JETLEADER customer worldwide Located in Chicago Press runs range from 1,000 copies to 150,000 copies. This includes their offset side.

Their Focus Ethnic Publishers Alternative Publishers School Newspapers Community Newspapers

Why did Newsweb chose the JETLEADER Before the purchase they had been looking at ink jet technology for 8 years With TKS they saw a ink jet vendor with knowledge of the newspaper and commercial printing industry The “finishing” equipment for multiple section (up to 5) broadsheet products Open source on ink and paper

Current status First JETLEADER started up October of last year – Now running weekly newspapers and several dailies on the JETLEADER Second JETLEADER purchased and will be running first quarter of next year at new production center. Second press will have a new variable cutoff folder and the first press will also be upgraded with the new variable cutoff folder Both presses will have the upgraded variable data printing package.

Current Product Mix Mostly Tabloid because that is the bulk of what they normally run. A few ¼ tabloid products Will go after more broadsheet work with the new variable cutoff folder that gives more page widths. Now fixed at 12”

Number of jobs Currently 24 different products comprised of: – (2) Dailies – Weeklies – Monthly – Special one time runs In the near future new customers utilizing the variable data printing – Example, change the masthead for city being served to attract local advertisers

Manning (2) people – (1) Pre press person for inputting/ripping the job – (1) Jogger After the job starts the pre press person can go on to other work.

Paper being used Started off being mostly ink jet Now 100% offset, same sheet as their single wide press 30#, 35#, 50# and 60#

Ink being used TKS has open source for ink supplier Newsweb has been using one supplier Additional supplier(s) soon to be qualified by TKS Choice of ink and changing ink suppliers not to be taken lightly in Newsweb’s opinion.

File management Being a commercial printer means having to deal with many other customers and their files. There was a learning curve on how to manipulate job files On offset easier to compensate on the press for needed changes.

New Production Center (2014)

Scalability What is the sweet spot for ink jet versus offset? How do the two processes compare at various page sizes and print runs? What is the proportional cost split between the two printing processes?

Assumptions Broadsheet (21.5” cutoff x 12” page width) 48.8 gsm “offset” paper substrate for both Color on every page Single width offset press Offset ink versus ink jet ink No press payments on either

No machine cost included

All things considered equal? How many people to run the same job? Can be done in one pass on JETLEADER – Multiple sections, up to 5, not have to insert offline – Up to 48 pages in a section with JETLEADER Waste factor on offset Setup times on offset

Proportional cost for offset and Ink jet

Variable Cutoff Folder

Variable Data Printing

Sheeter

200 Corporate Dr. Blauvelt NY Multicut Sheeter

200 Corporate Dr. Blauvelt NY Multicut Sheeter Maximum Cut Length 28” Minimum Cut Length 6” CUT ANY LENGTH SIZE BETWEEN MIN 6” AND MAX 28” SIMPLY ENTER DESIRED SIZE Maximum Web Width 22”

200 Corporate Dr. Blauvelt NY Multicut Sheeter

Experiences to date

We had four different demonstrations every day – Wall Street Journal “live” USA edition Page files received at 7:00am Germany time (1am NYC) Morning and afternoon runs in booth – Berliner size Korean Newspaper and Tab size Japanese – A5 and A4 sheets for book making Using VITS sheeter and Horizon book making equipment The press ended up being sold to Newsweb Drupa Experience

Started printing in April (2012) at one of our factories the Wall Street Journal Asia edition. This is for Osaka area. Get notification files are ready at 3:00am (2pm est) Japan time that files have been uploaded. Product starts leaving at 3:20am We then pull/download the files and start the ripping process. Takes a few minutes. Wall Street Journal (Asia) Experience

Printing 5 days a week, small print draw for distribution to local area business, i.e. hotels. Tabloid product 32 to 48 page average Per the “test program” agreement we concluded the printing first quarter of this year. Wall Street Journal (Asia) Experience

Wall Street Journal (Asia) Experience IGA factory

Hawaii Hochi Ltd. Third North American JETLEADER 1500 sale Production starts in December this year Prints Hawaii’s only Japanese newspaper and a variety of other commercial products.

Equipment list: – 4/4 printing – Variable cutoff folder – Tabloid, future multiple section broadsheet products – Chopper unit for signature products Hawaii Hochi Ltd.

Newsweb Demo TKS AT BOOTH #3340

Mike Shafer