Healthcare Update Vartech 2011

2 Agenda Industry Trends Healthcare Strategy –HIS Certifications –Target Markets Channel Message –Business Model Current Sales Tools

3 Using Color to Prevent Patient Errors Pharmacy Departments constantly looking for tools and processes to increase patient safety Approximately 1.5 million preventable Adverse Drug Events (ADE) per year in US- (Aspden,Wolcot, Bootman, Cronenwett 2007) Average cost of ADE is $5,857+ per event (JAMA Bates Study 1997) Color, symbols, and fonts can be tools to increase patient safety

4 Industry Trends Growing incidence of patient incidents over past 5 years involving compounding errors * Pharmacies always seeking ways to reduce errors *Pharmacy Purchasing Products April 2011

5 FY12 Healthcare Strategy Leverage HIS Certifications: –McKesson –Cerner –MediTech –Sunquest Expand color inkjet in Pharmacy and Patient Care Build an Epson label channel: –Enlist more ISVs to penetrate label market P60 C3400 Recruit Scanner ISV Channel

6 Strategy: HIS Product Certifications Current HIS/ISV Certifications Tier One HIS: McKesson Sunquest Cerner Etreby MediTech Tier Two ISV: –Baxa –Merge –Trimor –NEPS –RxScan MEDITECH

7 Strategy cont. Target Market Color Hospital Inpatient Pharmacy –Includes OR/Anesthesia Pharmacy Central-Fill –Mail Order –Distribution Refill Independent Compounding Pharmacies Pharmacy Dist. Refill Independent Compounders

8 Strategy cont. Target Market P60 Leverage HIS certifications: –Sunquest –Meditech Hospital Departments: –ER –Patient Care –Laboratory –Others… Penetrate bedside specimen collection labeling through certifications

9 Channel Opportunity with Color Benefits of Color on Demand Competitive Cost per label Business Model for Partners

10 Benefits of Color on Demand Prints both primary and secondary labels on one label—reducing errors & saving time Provides users ability to print more information—increasing patient safety Durabrite ink chemical resistance is best in industry Old thermal labelNew color on demand label

11 Auxiliary Labels Manual Process Automated Process Reduces errors

12 Competitive Cost per Label Cost of preprinted thermal label & ink.5¢ Cost of Color on Demand label and ink: –Paper label.5¢ –Polypropylene 1.0 ¢ –Note: Applies to volumes of approximately 60 up to 2,000 labels per day

13 Business Model for Channel Hardware Service Contracts –70% attach rate Software (Middleware) Professional Services –Label design Consumables –Ink –Media Support and Integration

14 Professional Services Ink yield and label design consulting Improve yields with color design Fig. 2, Design Modification 1 Percent of ink usage when compared to original label (fig. 1): Print Mode 1 yields 43.79% less ink used Print Mode 2 yields 42.34% less ink used Fig. 3, Design Modification 2 Percent of ink usage when compared to original label (fig. 1): Print Mode 1 yields 64.41% less ink used Print Mode 2 yields 61.83% less ink used Fig 2 Fig 3 Fig1

15 Sales Tools 50 Marketing and Support Assets… –Product Training & Support videos –Customer testimonial & application videos –Training slides –Datasheets –Media Sample Guide with ink yields –White Papers: 3 ea

16 Sampling of Customers

17 Conclusion Leverage HIS/ISV Certifications Increasing brand awareness Recruiting channel with opportunity message Support the channel with tools