2. Towards an innovative and profitable distribution paradigm in China market Steven (Jian) Cui General Manager License Division at PC Stars www.pcstars.com.cn www.softwarelist.cn www.baihui.com

3. Confidential Proprietary Agenda 2. 4. 3. 1. 5.5. How to get a creative Win-win Direct Sales Works in China? Successful Distribution for Kaspersky Company overview Current cooperation between ISVs and partners

4. Confidential Proprietary Additional 15% Increase globally? Come to China!

5. Confidential Proprietary BIG already, bigger in future. the Ministry of Information Industry reported. 80.8 Billion $ 2007 already Piracy rate: 80% 185 Billion $ 2010 forecasted 30% CAGR Piracy rate:? No 1 internet users, 212 million now

6. Confidential Proprietary Investor: the founder of Gemstar-TV Guide (NASDAQ: GMST) Board of Directors in Hong Kong 7 offices in China Mainland 276 employees 5 Company Overview Leading online software distributor and SaaS provider in China.

7. Confidential Proprietary Our company SaaS www.baihui.com Home&SMB www.rj100.com Enterprise www.softwarelist.cn PC Stars Three Platforms

8. Confidential Proprietary Microsoft, Symantec, Autodesk, Adobe, those software vendors have already used channel sale, even more rely on channel. Channel Sale Channel Sale Channel Whether direct sales work in China PTC, SPSS, Tripos, those vendors used direct sale before, have changed to channel sale. Direct

9. Confidential Proprietary Whether direct sales work in China Value Added PartnersEnd Users Software Vendors Resellers SIs VARs Retailers Service Providers Successful publishing model

10. Confidential Proprietary Current cooperation between ISVs and partners VAP or only Distributor Interacting not smoothly Bad mutual understanding Are we understanding each other properly? Different thinking of China culture Not localized pricing and product

11. Confidential Proprietary Current cooperation between ISVs and partners What vendor concerns?  Tend to develop various types of partners to maximize the marketing share  Avoid the risk of over depending on partners  Partner’s qualification  Company’s image and reputation  Save time and improve efficiency  Take the advantage of cooperating with real players

12. Confidential Proprietary Current cooperation between ISVs and partners What their Chinese partners care for?  Stand out from the group of partners  Pricing competition with the other partners  Vendor cutting in and closing the deal  Build trust with vendor  Commission and support from vendors

13. Confidential Proprietary Current cooperation between ISVs and partners Current PartnershipRight Partnership

14. Confidential Proprietary Right Partner Find a right partner Proved Integrated Marketing Distribution Network Trust-worthy Technical Support Localized Experience Solution &Service 24*7 toll-free line Call Center Onsite deployment Chinese version Localized pricing Customer base Ads, PR, Event, SEO Affiliate marketing Email marketing Online/Offline channel Logistic capacity Proved performance Training center Online consultancy system Technical team Investor background Proved recognitions

15. Confidential Proprietary How to get a creative Win-win Mutual U nderstanding Decision maker Both sides’ Commitment win-win Shared V ision Mutual Benefit Long-term Partner -ship

16. Confidential Proprietary How to get a creative Win-win ServiceResellerDistributor Exclusive Publisher distributor Sales Online sales (E-commerce)XXXX Online consultancyXXXX Local software downloading XX Call Center telesales XXX Sales channels XXX System Integrators sales system XXX Technical Support Telephone supportXXXX E-mail supportXXXX Online consultancyXXXX On-site service XXX Marketing Search engine advertising XXX Chinese official website XX Public relations XX Website marketing XX Media advertising XX Market activities XXX Event marketing XXX Affiliate Marketing XXX Industry seminars XX TrainingCertification Training Center XX Localization Product localization strategy XX Pricing localization strategy XX

17. Confidential Proprietary Worry about various evaluation variables? Worry about various evaluation variables? Easy with one Guaranteed Commitment Easy with one Guaranteed Commitment VS Channel fit? Trust-worthy? Technical team? Customer base? …… How to get a creative Win-win

18. Confidential Proprietary China/Global= 15%? PC Stars can help you achieve it! Additional 15% is possible!

19. Confidential Proprietary Welcome to contact me Jian.cui@pcstars.com.cn