U.S. Sales & Marketing Meeting Control it! U.S. Sales & Marketing Meeting October 2008 Leonard Tsang

Agenda Category Objective Market Trends Category Storyboard Marketing tools What we need from you Questions

Objective Recap our vision for 2008 – Need to look forward to 2009 as well at this stage

Objective smart made simple Become solid #3 in B2B market share Debunk Targus as #3 at Retail 4

Market Results

Overall, the Input Category has grown by 1.6% vs YAG, to $988 million. Input Category Dollar Sales (vs YAG) +1.6% Source: NPD 12MM August 2008 (vs. YAG) 6

This category growth is driven by increased keyboard sales Input Category Contribution (vs YAG) Source: NPD 12MM August 2008 (vs. YAG) 7

And driven almost entirely by Logitech Input Category Brand Share (vs YAG) Source: NPD 12MM August 2008 (vs. YAG) 8

Within the B2B space, Kensington is a solid #3 in the Input Category, and gaining share. Microsoft is #1 in the category, but Logitech has gained major share to close the gap Input Category Brand Share – B2B Source: NPD 12MM August 2008, Commercial sell through (mice, keyboards, desktops) 9

Logitech dominates at Retail, and has continued to gain share at every major manufacturer`s expense. Input Category Brand Share - Retail Source: NPD 12MM August 2008, Retail (mice, keyboards, desktops) 10

What’s our plan?

Objective: Retail Debunk Targus as #3 at Retail Positioning: Viable alternative to MS and Logitech and superior to all other 3rd party manufacturers with design innovation and the right feature set at competitive consumer prices Strategy Use Slimblade Trackball intro as hero product to create buzz / continued awareness of Kensington leadership in trackballs Displace Targus Stow and Go mobile mouse at retail with Ci10 Grow through penetrating OPSS and second tier retail Current and Alt channels: 2nd tier retailers – Bed Bath Beyond, RadioShack, regional CE stores; Mass; Dept Stores

Objective: B2B Become solid #3 in B2B market share Positioning: Position Kensington as the price/performance leader Strategy Use VAR program to create B2B awareness and demand Current and Alt channels: 2nd tier retailers – Bed Bath Beyond, RadioShack, regional CE stores; Mass; Dept Stores

The Control It! Story

Target User Environments Travel Home Out & About Office

Why to Buy? My touchpad is so difficult to use. My mouse broke. I need a second mouse to travel with. My mouse broke. I want to get a mouse that’s better than the one that shipped with my system. My touchpad is so difficult to use.

Introducing… The Kensington Spring 2009 Lineup

Slimblade Trackball

The Kensington Trackball Legacy Legacy Expert Mice had created a following for Kensington trackballs The Expert 7 is currently Kensington’s top-selling input sku * We took the trackball concept and went a few steps further It’s all in the ball Cursor control Scoll control – now integrated into the ball, thanks to state-of-the-art twin laser sensors Control Media mode controls Microsoft Media Center and i-tunes Pan/zoom mode controls web browsers, productivity software, photo-editing software and viewers, such as Internet Explorer, Office, Photoshop and Acrobat (list of supported applications in Appendix) Comfort The comfort that made the trackball famous, now ennhanced: slim design eliminates need for wrist rest Slimblade design Saves desktop space, looks great in any environment * Based on NPD August 12mm Sales Dollars April 21, 2017

SlimBlade™ Trackball Idea: Now, the ball does it all Key Features: Multi-function ball lets you easily navigate through your music, pictures and documents using media or document view mode Keep an eye on which application you are in and which function is being performed with the heads-up display on your monitor With its low-profile shape, you’ll be able to use it comfortably for hours on end The sleek stationary design optimizes your desktop space Gain fingertip access to image and media controls Control cursor and scrolling; volume, play/pause, stop, and next; zoom in/out, and pan, all with the ball SlimBlade™ Trackball K72327us $129.99 Available: 2/25/09 January 23, 2008

Packaging Paper COI January 23, 2008

Marketing Tools Hero Product: In addition to the standard list of assets, the following tools will be available: Impact Video: A video to help with sell-in/sell-through. Available 11/7 Microsite Tutorials video

Slimblade Mouse with Nano receiver

US Region: Competitive Landscape 12MM Mice Dollar Sales by Price Band Source: NPD 12MM 8/08

US Region: Competitive Landscape Snapshot of $39.99 mice in the market today: Microsoft Notebook Mouse 6000 Laser Sensor Wireless $39.99 Logitech V320 Laser Sensor Wireless $39.99 Targus AMW15US Laser Sensor Wireless Rechargeable

US Region: Competitive Landscape Snapshot of mice w/ nano receivers in the market today: Ci95 Optical Sensor Wireless $39.99 $34.99 (2/1/09) Logitech V450 Nano Laser Sensor Wireless $49.99 Logitech V550 Nano Laser Sensor Wireless Notebook attaching system $59.99 Logitech VX Nano Laser Sensor Wireless $69.99

Idea: The laser mouse that’s on the move Key Features: Plug-and-stay nano receiver is so small you plug it in once, and never have to worry about it again Laser sensor gives you precise control on more surfaces and extends battery life Thin profile design fits in your hand as well as your travel bag 4-way tilt scroll wheel Laser sensor for tracking on more surfaces Low-battery indicator SlimBlade™ Mouse with Nano Receiver K72334us $39.99 Available: 1/31/09 January 23, 2008

Packaging Traditional COI Nano Receiver shown outside of mouse January 23, 2008

Why the Slimblade Mouse w/ Nano Receiver will be successful in the marketplace? We dared to think differently to tackle consumer pain-points head-on with the Slimblade series We distilled the best of Slimblade’s design elements with the latest technologies to develop the Slimblade Mouse w/ nano receiver 2.4 GHz plug and stay nano receiver Easy to travel with, yet comfortable for everyday use Tracks on more surfaces Laser sensor for superior trackability and accuracy Value Proposition for the consumer Suggested Street Price of $39.99 makes this the most inexpensive laser mouse with nano receiver in the market Smart : Thoughtful consumer insights + Simple : Layers of functionality Mouse is tallest element in bag! = April 21, 2017

Ci10 Fit Wireless Laser Mouse

US Region: Competitive Landscape 12MM Mice Dollar Sales by Price Band Source: NPD 12MM 8/08

US Region: Competitive Landscape Snapshot of $29.99 mice in the market today: Microsoft Optical Mouse 3000 Optical Wireless Bright Colors Logitech V220 Optical Wireless Bright Colors Targus PAWM10U Optical Wireless Travel Pouch

Idea: Free yourself from the touchpad It “Fits” Your hand Your pocket Your lifestyle Key Features: Laser sensor works on more surfaces and conserves batteries Receiver stows flush on the bottom of the mouse to fit easily in your bag Contoured rubberized grips give you all day comfort Six months of battery life on 2 AA alkaline batteries Ci10 Fit Wireless Notebook Laser Mouse K72335us: $29.99 Available: 2/16/09 January 23, 2008

Packaging Hybrid paper box / blister pack to enable consumers to feel shape of mouse in packaging Receiver shown outside of mouse January 23, 2008

Why will Ci10 be successful in the marketplace? We dared to think differently to tackle consumer pain-points head-on with the Ci75 We applied everything we have learned in developing Ci10 Fit Easy to travel with, yet comfortable for extended use New shape with rubber grips for superior comfort Tracks on more surfaces Laser sensor for superior trackability and accuracy Affordable Suggested Street Price of $29.99 hits the sweet spot in mice price bands Smart : Thoughtful consumer insights + Simple : Just what they need, nothing more Mouse is tallest element in bag! = April 21, 2017

Ci70 Photosync Destop Set

US Region: Competitive Landscape 12MM Desktop Dollar Sales by Price Band Source: NPD 12MM 8/08

US Region: Competitive Landscape Snapshot of desktop sets $59 - $79 in the market today: Cordless Desktop LX 310 Laser $59.99 Laser Mouse Wireless Multimedia Keys Microsoft Wireless Laser Desktop 6000 $79.99 Laser Mouse Wireless Multimedia Keys Logitech Cordless Desktop LX 710 Laser $79.99 Laser Mouse Wireless Multimedia Keys

Idea: The desktop that keeps you in sync Key Features: Download images from your digital camera, and sync your smartphone or MP3 player with the built-in mini USB cable or USB port Wireless laser mouse tracks on almost any surface Dedicated media keys & hot keys for instant access to applications, media controls and more With a 35% smaller footprint, low-profile design and a sliding door the keyboard saves space and looks good doing it Wireless mouse with removable receiver so you can take it with you Set is ready to use out of the box—no pairing necessary Ci70 Photosync Desktop Set K64399us $69.99 Available: 2/11/09 January 23, 2008

Why will the Ci70 PhotoSync Desktop Set be successful in the marketplace? Unique to other desktop sets in the market 40MM digital cameras projected to be sold in USA in 2008, up from 35MM in 2007* Mini-USB cable simplifies photo-syncing process Additional USB port on the keyboard for easy USB access Laser mouse for superior trackability Mouse receiver detachable for travelability Value play: Ci10 ($29.99) + Ci70p keyboard ($49.99) = $79.98 Ci70 set SSP = $69.99 Source: Infotrends: http://www.itfacts.biz/us-digital-camera-market-to-reach-40-mln-in-2008-25-mln-of-them-to-be-slrs/11297 April 21, 2017

Packaging Paper COI January 23, 2008

Where do the new skus fit into the lineup?

Mobile Mice $34 & up 72280 $79.99 Slimblade Presenter Media Mouse 72281 $69.99 Slimblade™ Trackball Mouse K72330US $49.99 Slimblade™ Bluetooth Presenter Mouse 72283 - Ice Blue $49.99 72285 - Deep Blue $49.99 Slimblade Presenter Mouse 72269US $49.99 Si750m Wireless NB Laser 72271US $49.99 SI670m Bluetooth® K72334 $39.99 Slimblade Mouse with Nano Receiver K72328US $34.99 effective 2/1/09 Ci95m Wireless Mouse with Nano Receiver 72256US $39.99 Si650m Wireless Optical 72239 $39.99 Pilot Mouse Laser Wireless Mini Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Mobile Mice $14 to $34.99 K72297US Grey/Orange $32.99 K72298US White/Silver $32.99 K72278USA Black $32.99 Ci75m Wireless Notebook Mouse K72335 $29.99 Ci10 “Fit” Wireless Laser Mouse K72267US $29.99 Ci65m Wireless Notebook Mouse K72214 $24.99 PocketMouse™ Wireless Mini K72266US $19.99 Ci25m Notebook Optical Mouse K72212 $19.99 PocketMouse™ Mini K72114G $16.99 PocketMouse Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Wireless Desktop Mice 72282USA Dark Wine 72286USA Piano Black SlimBlade™ Media Mouse $49.99 72242 Wireless Pilot Laser $39.99 72275US Rouge 72300US Copper Ci70 LE Wireless Mouse $29.99 72276US Titanium 72301US Matte Black Ci70 Wireless Mouse $29.99 Is it the same model – just different color for the Pilot Mouse optical pro wls? Are bringing the price down to $29.99. Refresh for 72129 is 72129A? Specify the upgrades. Design, color, material? More ergonomic, name of color, material – lead free? Battery indicator – mouse or receiver. Pkg and name – specify? Are the other color variations living through or changing too? -Check on placement . New version $39 or $29? K72258US $29.99 Ci60 Optical Wireless Mouse Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Desktop Mice $14 - $29.99 72243 –72331USA $29.99 Si300 Laser 3 BTN (Right Handed) 72257 $24.99 Ci20 Optical Mouse 5B USB 72326US $19.99 Ci73 Wired Optical Mouse – Black (B2B Packaging) 72121F $21.99 MIAB Elite, USB 72213 $16.99 MIAB Optical II, USB 72123F $16.99 MIAB Optical Elite, USB 64381 $13.99 ValuMouse® Opt USB/PS2 Mouse Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Desktops Mouse & Keyboard Combinations K72329US $129.99 Slimblade Bluetooth Notebook Set K72279US $129.99 Slimblade Media Notebook Set 3pc. (Keyboard, Keypad, Mouse ) K72318US $99.99 Slimblade Notebook Set 2pc. (Keyboard, Mouse) K64392US – Matte Black Ci70 Wireless Desktop Set $79.99 K64399US $69.99 Ci70 Photosync Desktop Set K64390US $69.99 PilotBoard Laser Wireless Desktop Set K72320US $19.99 SlimBlade Media Remote Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Keyboards Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar K64396US $49.99 Ci70 Keyboard w/USB Ports (wired) K64397US $29.99 Ci73 Wired Keyboard K64365 - PC $29.99 K64366 - Mac $39.99 SlimType Keyboard K64338B – Black $19.99 K64331A – White $19.99 Comfort Type USB Keyboard (K64338B - includes PS2) K64370 $17.99 Keyboard for Life (USB/PS2) Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Keypads Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar K72273US $59.99 Wls Notebook Keypad/Calculator and Mouse Set K33059 $39.99 Pocket Keypad Calculator K72274US $29.99 Notebook Keypad/Calculator with USB Hub Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Presenters Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar K33374USA $59.99 Wireless Presenter with Laser Pointer K33373 $49.99 Wireless Presenter Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Trackballs Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Slimblade Trackball K64325 $99.99 Expert Mouse ® K64327F $29.99 Orbit Optical Trackball Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar

Marketing Tools Competitive Landscape New Products Flyer Spec sheets Flash demos Website updates Promotional plans PR Plan

What we need from you… Retail Present story on the latest in Ci, Slimblade and trackballs Aggressively displace Targus and other 2nd-tier brands at all accounts by leveraging competitive grid Gain new placement and improve presence at OPSS and 2nd tier retail Power center wins: Micro Center, BBY power section, Staples Best Tech – building the momentum

What we need from you… B2B Validate market opportunity for new products Identifying competitive products Sizing market opportunity Create plan to launch validated new products and re-invigorate tried and true B2B products via the VAR program and with DMRs Power center wins: Micro Center, BBY power section, Staples Best Tech – building the momentum

Questions?

Appendix

List of supported Slimblade Trackball Applications Photoshop Lightroom Photoshop Elements Aperture iPhoto Numbers Pages Preview Acrobat Acrobat Reader Excel Excel for Mac 2004/2008 Word Word for Mac 2004/2008 Internet Explorer Firefox Safari iTunes Media Player