© 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Marketing Hadar Friedland Marketing Product Manager January 2007

Contents LF Business Screen vs. Digital Printing HP Scitex Drum based family Competitive Analysis Key Messages

Contents LF Business Screen vs. Digital Printing HP Scitex Drum based family Competitive Analysis Key Messages

Wide format graphics, $90 to 100B market (RVPO) Largest opportunity: analog to digital conversion of screen printing Digital penetration currently 23%; will double in five years Market and growth Source: IT-Strategies % 23% 51% Digital Screen printing Offset, Flexo &Other 25% 45% 30%

Changing competitive landscape— wide format printing Productivity Quality Agfa + Mutoh +Thieme EFI buys Vutek D.S. buys Inca HP buys Scitex HP LFP Gandi

FY07: LFP Business expected to grow 6% Industrial Solutions represents 32% of the total LFP Business Echo products: DJ8000, 9000, HW + Inks FY07 Revenue ($M)FY06FY07 Designjet1,2461,320 Growth4%6% Scitex Growth11%10% Total LFP (incl. consumables) 1,4141,504 Growth5%6% TOTAL LFP Zoom in: Industrial Solutions

Customers: Print-Service-Providers (PSP) Small to medium digital shops, medium to large screen printers (analog), sign shops, photo labs 20 to 100 employees $2-10M annual turnover 1-3 shift operations Service oriented activity Printer is largest capital investment $100K - $1M

Source : I.T. Strategies Volume Growth (last 2 years) Total $35B (31B ft 2 )6% Digital $6.2B (17%)30% Outdoor signage—the Market

HP Scitex XL1500 at CGS, Los Angeles, CA Outdoor graphics LFP industrial solutions and unique selling points HP Scitex XL1500 and HP Scitex Grand—industry’s “work horse” solutions Size, application and media versatility High quality-to-speed ratio Excellent reliability

Outdoor signage—customer story Customer name OSG, Hungary Business description Signage, billboards and street graphics Application Banners celebrating Hungary’s admission to the European Union, printed by OSG Hungary to decorate the towers of the Elizabeth Bridge over the Danube in Budapest The challenge Time to market double-sided 1.5 days

Volume Growth (last 2 years) Total $33B (25B ft 2 )7% Digital $2.2B (7%)13% Indoor graphics* *Excluding POP Source: I.T.Strategies

HP Scitex TJ8300 (Turbojet) at O’Donnell, Orlando, FL Indoor graphics - LFP industrial solutions and unique selling points The HP Scitex TJ8300 (solvent) & TJ8500 (UV) are the only solutions in the market matching screen printing’s productivity with lower operating costs USP’s Break-even point at 500 copies Outstanding quality and sharp text Quick return on investment New HP Scitex TJ8500 for UV curable printing

Customer name O’Donnell, Orlando, FL Business description Packaging company, POP displays division Application Indoor applications used in theater lobbies, theatre marquees, glass display cases, balconies, and ad spaces in and around the theaters (bus, train, subway depots, etc.) The challenge Creating 200 theater posters—“one-sheets,” 27”x 40” on paper, used in theater lobbies in one hour Indoor graphics—customer story

Source : I.T. Strategies Volume Growth (last 2 years) Total $8B10% Digital $0.5B (6%)60% POP displays—the market

HP Scitex FB6700 at Duran Dogan, Turkey POP displays LFP industrial solutions and unique selling points The HP Scitex FB6700 is the highest productivity system in its class USP’s Fully automated Outstanding print quality Environment-friendly water based pigmented ink HP Scitex FB6700 with in-line laminator

POP displays—customer story Customer name Carmel Container Systems Business description Packaging company, POP displays division Application 3D displays prepared towards promotion of Disney movies The challenge Repeated orders of short runs (6 units of each), overnight delivery time at outstanding quality

Widest Portfolio of Digital Wide Format Products Super Wide FormatWide FormatFlatbed

Providing Wide Range of Applications Super Wide Format Soft Signage Wide Format POP Displays & Packaging

Contents LF Business Screen vs. Digital Printing HP Scitex Drum based family Competitive Analysis Key Messages

Trends: Screen vs. Digital Printing FESPA ’05, Munich: −Digital domination in a screen-printing show −Approx. 2/3 dedicated to inkjet −No real new screen developments Rapid change of material as retailers react to competition or environment changes Ability to compete with screen in features such as flexibility, functionality vs. productivity issue

Trends: Screen vs. Digital Printing According to PIRA: −in 2005, breakeven point was up to 500 copies. −By 2010, it is estimated that this breakeven pt. will increase up to 1000 copies Growth ( ) WW Screen printing (M €) 31,61129,11923,865-18% WW Wide format digital Printing (M €) 7,59816,17426,

Increase revenues Support also short and medium runs (more jobs) Meets the advertising new campaigns trend (shorter runs) Improves Business Opportunities! Revenues

Reduces Production Costs How (Combination of): No setup required Speed: quality printing of 400 sqm/hr / 4,304 sqft/hr Wide media offerings including uncoated low cost materials Efficiency: S/W – arranging print + load files to queue while printing, media – loading the required size while printing and an integrated Scitex vision dryer No. of Copies~ 300

24 Real-size proof within minutes! Same colors from copy # 1 to copy # 500 (Huge challenge in screen printing) Proofing

Contents LF Business Screen vs. Digital Printing HP Scitex Drum based family Competitive Analysis Key Messages

HP Scitex Drum based family HP Scitex TJ8300HP Scitex TJ8500 External drying system Wide choice of media Solvent based Ink Internal curing system Additional media options UV Curable Ink

HP Scitex Drum based family Wide format Industrial Printing Market Environment al Barriers Technology Trend HP Scitex TJ8300 (Solvent) High Volumes of Billboards Outdoor signage Indoor signage Vehicle wraps Etc. Uncoated Media Space Problem HP Scitex TJ8500 (UV) Complementary

HP Scitex TJ8500 Ink UV850 Supreme 2 years durability Printing ModesMedia HandlingInkWorkflowPrinthead

Color Gamut Comparison

HP Scitex TJ8500 features and benefits in production UV curing requires less machine length and less production floor space than thermal drying Machine Length (m) Machine Footprint (sq.m.) Maximum Power* (kW) HP Scitex TJ8500 UVC inks HP Scitex TJ8300 Solvent inks * Machine plus UV curing or ink drying station

Contents LF Business Screen vs. Digital Printing HP Scitex Drum based family Competitive Analysis Key Messages

Competitive Landscape Analog (Screen) No real digital competition −Augend Technologies F16 Printer (subsidiary of Infinity) A new drum-based product Solvent inkjet printer, offers UV curing as an option Produced in Belgium Productivity of 400 sqm/hr, spectra heads… It should cost approx. 1.5m$

Analog Printing Characteristic CharacterScreen PrinterOffset Throughput>600 sqm/hr>1,000 sqm/hr Machine Price (4 colors)~ $800k~ $1,500k Ink Price/L< $10 (20-30c/sqm)< $5 (<10c/sqm) Media Price< $0.3< $0.2 Maintenance costsLow Training requiredLowHigh Setup CostsHighVery High Time to marketMediumlong

Contents LF Business Screen vs. Digital Printing HP Scitex Drum based family Competitive Analysis Key Messages

Fastest WF digital Printer in the world without compromising on quality More cost-effective than screen printing for short and medium print runs Integrated Ink, SW and curing system makes it a complete solution Continuing the proven, unique drum technology success Customer Service Approach of HP Scitex TJ Family Key Messages

Thank You