1. Kevin Pirkey October 2, 2008 Drawing a New Plan for Print: Going Digital

2. Session Description: Digital printing is an exciting development in journal publishing that offers new options for publishers, authors, and editors. This presentation will provide an overview of digital print productionin terms what it is, what it can do, what the benefits are, and what journal-based support services are availableand will conclude with a look at e-commerce tools.

3. Why Is Digital Printing Exciting? A Helpful Solution To Many Of Todays Publishing Challenges Migration From Print To Online Delivery Declining Subscriptions & Subscription Revenue New Online Only Journals Increased Specialization Of Content Increased Usage of Color Need To Reduce Overall Cost of Print Production

4. What Is Digital Printing Printing process which uses an electronic digital imaging process that transfers the image directly onto plain paper without traditional film and plates.

5. How Does Digital Printing Work 1.A photoconductive surface is given a positive charge. 2.The image of a document is exposed to the surface. This causes the charge to drain away from the surface in all but the image area. 3.Negatively charged toner is cascaded over the surface and adheres to the positively charged image area. 4.A piece of plain paper is placed over the surface and given a positive charge. 5.The negatively charged toner is attached to the positively charged paper. 6.The toner image is fused to the paper by heat. + - +

6. Black and White Toner Black & White – Higher Resolution 600 to 1,200 dpi – Chemically Grown Emulsion Aggregate Toner (EA) – 3-5 Microns in size – Uses 40% less toner then previous technology

7. Black & White Dual Engine Digital Printing Press

8. Digital Color Liquid ElectroInk Offset Quality Digital Color

9. Five Color Digital Printing Press

10. Pros & Cons of Digital Journal Printing

11. Pros for Journal Publishers A Few Pearls To Take Home

12. Cost Effective Short Run Book and Journal Printing Short Run Titles Specialized Versions Declining Subscriptions Online Only Journal Titles Annual Archival Issues Custom Collections/Compendiums Bound Book Galleys One to 1,000 copies Black and White Four Color Process Perfect, Saddle, Case, and PlastiCoil Binding

13. Digital Vs. Offset Printing Cost Model Unit Cost Per Copy $ Print Quantity 1 Digital Offset Cross over point 250 to 1,000 copies Digital Savings Opportunity

14. Minimizes Storage Costs and Obsolete Back Issue Write-Offs Overrun 6-12 Month Expected Sales Fulfill From Micro Inventory or Print Issues On Demand Replenish in Batches of 5-25 copies

15. Conventional Warehousing Vs. Digital Inventory Replenishment Store Just in Case - Long-term cash investment - Lower initial unit cost - Long-term storage charges - Inventory shrinkage/damage - Obsolete inventory write-off - Higher overall cost Store Just in Case - Long-term cash investment - Lower initial unit cost - Long-term storage charges - Inventory shrinkage/damage - Obsolete inventory write-off - Higher overall cost Digitally Print Just in Time - Spread out cash investment - Print journals as sales occur - Potential higher initial unit cost - Minimal long-term storage costs - Fresh inventory - No obsolete inventory write-off - Lower overall cost - Environmentally Beneficial Digitally Print Just in Time - Spread out cash investment - Print journals as sales occur - Potential higher initial unit cost - Minimal long-term storage costs - Fresh inventory - No obsolete inventory write-off - Lower overall cost - Environmentally Beneficial

16. Four-Color Digital Cover Options Can Become

17. Environmental Benefits Efforts Print Only What You Need FSC Certification Energy Star Efficient Digital Presses 10-100% Recycled Stock Options 277 Volt Lighting In Production Plant 30-50% Recycled Shipping Cartons Emulsion Aggregate Toner - 40% less 100% Electrical Offset By Renewable Energy Credits or Green Tags

18. Four-Color Placement 1 4 5 8 9 12 13 16 2 3 6 7 10 11 14 15 Offset Digital 1 3 5 7 9 11 13 15 2 4 6 8 10 12 14 16 4/4 Signature $$$$$ 2 Pages of Color $$

19. Cons for Journal Publishers Give & Take Of The Process

20. Digital Vs. Offset Printing Cost Model D Unit Cost Per Copy $ Print Quantity 1 Offset Opportunity Digital Offset Cross over point 250 to 1,000 copies

21. PMS versus CMYK Digital Printing RGB CMYK Pantone

22. Paper Stock Limitations Digital Press Approved Stocks Press Jams Ability to Withstand Heat of Process Adhesion of Toner to Various Stocks Ability to Coat or Laminate Cover Stocks Stock Weight Requirements

23. More Than Just Digital Printing Ease Of Use Reduce The Cost of Transaction Simplify The Ordering Process For All Involved Integrate With Authors Integrate With Publishers Existing Systems Integrate With End User Of Content Provide Back Office Accounting And Reporting Security

24. EzSubmit TM

25. EzOrder TM

26. EzFulfillment TM

27. eCommerce Enabled EzFulfillment TM

28. EzReprint & EzBilling TM

30. Accounting & Reporting

31. Questions? Kevin Pirkey Vice President Odyssey Press, Inc. 22 Nadeau Drive – P.O. Box 7307 Gonic, New Hampshire 03839 Phone 717-225-9477 EmailKevin@odysseypress.comKevin@odysseypress.com SkypePirkey Webwww.odysseypress.comwww.odysseypress.com