May 9, USB 2.0 Opportunities in Retail Dan Clements Consumer Products and Technology Manager Circuit City Stores Inc.

May 9, The Extended PC “The PC is a wonderful device for personal productivity, for computing, for accessing information, but when you attach other devices, you give the end user more excitement and capability, more opportunity to do things.” — Craig Barrett CEO Intel 2001 CES Keynote 1/5/2001 — Craig Barrett CEO Intel 2001 CES Keynote 1/5/2001

May 9, The Extended PC w Key Technologies for the Extended PC – USB 2.0- Wired Connection for Performance Peripherals and Upgrades – Windows XP- Ease of use, new features, enhanced performance and stability – Ethernet and b - Wired and Wireless connection of multiple PCs and devices – Broadband - Always on, rapidly delivered rich content – IEEE-1394b for A/V clusters- Bringing the home entertainment cluster and PC together – UPnP- Framework for device detection, discovery and usage across multiple networks

May 9, The Extended PC w USB 2.0 benefits to the Extended PC – Enables High Performance PC peripherals u Storage Functions u Broadband u High Quality Video functions – Enables multiple high performance and low speed device to comfortably share the bandwidth without degrading the consumer experience

May 9, Consumers and USB w Ease of Use – Plug and Play- It Just Works! – External Expansion- No screw driver, No circuit boards – One Plug Fits All- More like plugging in an appliance w Speed – Faster than legacy ports w Flexible – Simultaneous connection of multiple devices – Devices can act as hubs for other devices

May 9, Retail Perspectives on USB w Ease of Use – Greater Sales Opportunities – Lower Returns – Lower Support Costs w Standard Interface – Rational Product Assortments – Cross Platform Utility

May 9, USB 1.1 in Current Products w Computers and Notebooks – $9B US Retail Market- 100 % of Assortment w Printers – $2.2 B US Retail Market -97% of Assortment w Scanners – $572 M US Retail Market- 94% of Assortment w Digital Cameras – $1.9 B US Retail Market- 92% of assortment w PC Upgrades/Peripherals – $3.4 B US Retail Market- 36% of assortment

May 9, USB 1.1 in Current Products Printers NPD Intelect Data

May 9, USB 1.1 in Current Products Scanners NPD Intelect Data

May 9, USB 1.1 in Current Products PC Cameras NPD Intelect Data

May 9, The Reality of USB 1.1 w USB devices are returned by end users in numbers comparable to legacy devices w Many PC’s still ship with PS/2 Mouse and KB w Sales of IEEE-1284 printer cables continue to indicate that most printers are using legacy ports

May 9, Challenges with USB 1.1 w Order of Installation Issues- Consumer plugs device into computer prior to loading proper drivers and is unable to get the device to work. w Drop in the Box- Software bundled with the USB device defaults to a different connection type, items in the box that only tangentially relate w System Tray / Performance- The computers overall stability/performance suffers when multiple applications are loaded at boot up

May 9, Challenges with USB 1.1 w Hub Dynamics – Managing powered Hubs and host powered devices – Devices that can support a USB port should provide one, particularly scanners and printer. – Connections through hubs and devices only becomes more complicated with USB 2.0

May 9, Ease of Use Opportunities w Ensure the consumer has an Positive Initial Experience – Sweat the Details u Document Installation u Universal Logo’s, Labels, Color Coding – Limit Opportunity for Failure u Solid Signed Drivers u “Every item in the box is the product” u Software installs cleanly and is configured to use device u Use the O/S wizards

May 9, Retail USB 2.0 Wish List w USB 2.0 Logo Program – Submit Products, Certify Products, Participate in Plug-Fests – Consumer Confidence u Logo = Quality u Logo = Compatible u Logo = Solution – Our Direction at the Store Level u “Look for the logo as an indication of a quality product that will work for you”

May 9, Retail USB 2.0 Wish List w USB 2.0 – Marketing u Speed Sells- Make clear speed statements u 40x Performance is a spec made for retail – Differentiate New High Performance Product ! u Packaging Ô Prior to OEM integration - ä Ship USB 2.0 cards with products ä Bundle Opportunities u Documentation Ô Clearly indicate limitations on USB 1.1 host

May 9, Retail USB 2.0 Wish List w USB 2.0 – Document USB 2.0 Capable Product u Packaging Ô Highlight backward and forward compatibility u Documentation Ô Clearly indicate limitations on USB 1.1 host

May 9, USB 2.0 and Windows XP w Windows XP – We believe Windows XP represents a chance to dramatically improve the customer experience with both new and existing products – Ease of Use, New O/S Features and Stability can ignite industry sales – Make your product part of the solution and make the transition smooth for the consumer

May 9, USB 2.0 and Windows XP w Windows XP Logo Program – Get your solutions Logo’d! (including all in-the-box technology) u Helps Consumers identify a quality solution u Reduce product returns u Lower support – “When our customer make their buying decisions they will be looking for the logo and so will Circuit City.”

May 9, Calls to Action w Bring New Performance Products to Market w USB Certified Logo Program w Windows XP Logo Program w EoU Roundtable – Peripherals Whitepaper – Upcoming Peripheral Initial Experience Tool