Applause Media System Audio/Video Release Distributor Roadshow John Williams, Product Manager

Agenda  New audio/video release  Identifying Applause customers  What Applause can do  Launch package / new sales presentation  Getting past “no thanks”  Promos and pricing  Wiring options and order form changes  New install process

 The Applause Media System is an easy-to-use digital media system that turns your dispensers into an interactive platform, displaying promotions and offering coupons to drive fueling customers inside your store. What is Applause

New Functionality  The addition of audio and video capabilities has been the most requested feature from customers.

 NEW! Support for every major electronic video format.  NEW! Support for every major electronic audio format. Applause Media with Audio/Video

 TV Commercials  Sound effects  Audio prompting  Promotion Voiceovers True Multimedia Delivery!

New Functionality Available on YouTube – just search for “Applause Media”

New Video Library!  11 categories covered (20 videos)  Professionally Produced  Retailers can include their own text-based or coupon offers New Audio Library!  Over 200 clips  English and Spanish  Professional Voice Talent Updated Graphics Library!  Now 70,000+ images  QSR and C-Store Focus

 Forecourt marketing is becoming more and more critical for all c- store retailers, with increasing competition from other channels.  Traits of good Color/Applause candidates: Larger c-store with wide in-store merchandise selection Foodservice offering on site Car-wash High volume site Other “focused” non-fuel profit centers (Coffee program, beer cave, etc.)  Good Applause users have a resource dedicated to marketing. Time requirement for system is minimal, but it must be properly utilized to get the desired results Identifying Applause Customers

Case Study Profile  Branded gasoline station in a smaller suburban location Branded deli sandwich franchise Medium sized C-store with “beer cave” Self-serve Carwash Average monthly volume +/-110,000 gallons 6 Encore 500s dispensers with 10.4” color screens  Customer previously made light use of Applause  Audio/video deployed on June 29 th. What Applause Can Do….

19% INCREASE IN SALES OVER 3 MONTH AVERAGE 13.8% Instore 11.7% QSR 33.4% Carwash Increases Three Month Average = $101,349 vs. $120,456

 New launch package sent out in early August  Launch package contents: Digital BrochureIT FAQs Sales Presentation (Power Point)Network Diagram Customer FAQsUpdated Catalog Sheet Achieving Success with ApplauseUpdated Encore Sales Tool Sheet Launch Package Overview

 The color screens are too expensive In-store lift of a modest 4% results in a two-year payback (on a dispenser that has a 12-year + life) Color upgrade price is for both sides (2 fueling positions) Unlike some less expensive alternatives, Color/Applause is:  Located at the forecourt and able to reach fuel-only customer  Built for a very specific industrial use (the screens have to be built to a very high spec to function for a long period of time in an industrial fueling environment) Built and tested to an operating temperature range of -30 to 120 degrees Acrylic coating to protect screen from scratches and weather-related damages Getting Past “No Thanks”

 Attention is focused elsewhere Majority of fueling customers don’t come inside the store  Need a way to convert them to higher-margin in-store customers Your in-store customers now can buy the same goods from Walgreens, Dollar General, CVS, Kroger, Wal Mart, Quizno’s., etc.  C-store retailers have the advantage – the customer is already on-site getting fuel – just need a hook to get them inside the store  We’re a small company that doesn’t have the time/resources to manage the system Very easy to use system that only requires a few hours attention every 2 to 4 weeks for effective use Many resources included with the system that make it easy for any retailer to use effectively (User Portal with pre-made promotions, graphic, audio and video libraries) Getting Past “No Thanks”

 Don’t the pump-top companies give away screens? Only for sites in top advertising market areas (NYC, Los Angeles, Chicago, etc.) Only very large volume sites are selected. No content control – effectively just a billboard that someone else sells advertising on Not as effective at driving in-store traffic  Content is not specific to the site  Ad content for non c-store items (cars, insurance, etc.)  Not interactive (no couponing or interaction to engage customer and bring them inside the store) Getting Past “No Thanks”

Limited Time Promotions New Dispenser Purchase w/ 10.4” Screen Upgrade Free Applause Server (A $3500 Savings) -Or- Save $600 Per Dispenser Offer Ends 10/31/09 (SP-3324 for Details) E500 Mono Upgrades to 10.4” Color Screen Save $1,875 Per Dispenser (with purchase of EPP retrofit Kit) Offer Ends 12/1/09 (SP-3321 for Details) 10.4” Color Dispensers (Existing non-A/V) Save $400 Per Dispenser (Full Upgrade to A/V) Offer Ends 10/31/09 ( $399 list price to 10/31, $799 after 10/31. Order on Color RF Order Form )

Pricing: Factory Installed Color and Applause  Factory-installed color dispensers (Encore S): $5,929 (no change to list) – will be shipped audio/video capable No longer need to separately order a connectivity card ($419 savings per dispenser)  Applause Media System changes: List price decreases from $4,394 to $3,500 Long Range Ethernet (LRE) switch no longer included in base package – will be a required separate purchase for sites using DSL/twisted pair wiring

 $399 limited time list pricing per dispenser ($799 after 10/31)  Includes: New accelerator card (one per dispenser) New software Audio/video content libraries Online training on audio/video functionality, and video frame theme design  Software Re-load and Card Installation (not included) estimated to be approximately 45 minutes to an hour per dispenser  Hi-speed internet required Pricing: Upgrades for Color Dispensers

Retrofit Promotion  Limited Time Offer Order an EPP retrofit for an Encore 500 or S series dispenser and add an audio/video capable color screen retrofit for only $4,995 (list price.) Standard list price = $6,870  Promotion pricing is less than the cost for a factory-installed color upgrade! Unless already installed at the site, Applause must also be purchased to drive content on the color screens.  Details of Offer: Refer to promotional flyer SP-3323 for details and ordering instructions. Save $1,875 per Dispenser! (if ordered by 12/1/09)

-Long Runs (280ft of better) -AC Conduit Installations (usually retrofit) -Requires Separate LRE Switch ($2015) Category 5 Cable (Cat 5e) -For runs less than 280ft -Must run through non-power conduit (intercom OK) -No LRE Switch Required (less expensive router/switch can be used) Separate connectivity card purchase no longer required for either color wiring option ($419 savings per dispenser) Wiring Options for 10.4” Color

Wiring & Order Form Changes  New Order Form Question: DSL/Twisted Pair or CAT5e Ethernet Drives correct connectivity board for factory installed dispensers, A/V upgrade kits, and monochrome to color retrofit kits Drives required LRE purchase if wiring is DSL/Twisted Pair.  Connectivity card purchase still required for monochrome Applause installations Wiring options (DSL/twisted pair vs. CAT5e Ethernet) also available for monochrome installations.

Order Form Addition  A/V upgrade for existing color dispensers added to Color Screen Retrofit order form (EN10.4AVUPGRADE)

New Install Process  Data sheet is no longer needed in advance of install Installing technician simply calls to obtain the pass code, location ID, and host name (and, for dial-up sites, the access numbers). This step is required to register the site and complete the installation (very important for service going forward)  Please ensure that the installing technician is Applause certified Online course available for Applause certification To enroll, Provide technician number and request the Applause technician certification course.

Questions?

Back-Up Detail

 Cat 5e Install will also require a router (not included)  For DSL Install, order 1 LRE per 8 dispensers  Wiring thru A/C Conduit requires DSL install and add one Isolation box. (List price $455) Example Kit Cost: 5 Dispensers with 10.4” Color Option

 Cat 5e Install will also require a router (not included)  For DSL Install, order 1 LRE per 8 dispensers  Wiring thru A/C Conduit requires DSL install and add one Isolation box. (List price $455) Example Kit Cost: 5 Dispensers with 5.7” Mono