1. Bases for Global Segmentation Market Size & Growth –GDP –Rate of projected growth in income –Population size and growth Demographics Geography Cultural/Psychological characteristics Usage/Consumption patterns Benefits – needs people have for the product vs. comparable products (substitutes)

2. Computers Sales in the United Arab Emirates Computer sales in U.S. $ millions 1999 e 2000 e 2001 e % change 2001-2000 2002* 348.20422.80509.7120.56614.48 e – estimated; * projected Source: WWW.usatrade.gov Report CGG-UAE2002-CH—001F5639WWW.usatrade.gov

3. Estimated market potential for personal computers in UAE $614.48/$0.002* = 307,240 units Personal computers account for $76.46 million (15%) of $509.71 mil in 2001; 38,230 units If home pc market grows at same rate as total market, 2002 demand should be $76.45 mil x 1.2056 = $92,168, or 46,085 units. (less than 1% of the total pop of 3.1 billion people living in UAE). Assuming we can acquire 5% market share in 2002, that’s 2,305 machines * Assumes avg price = $2000

4. How to select target market(s): Segment size & growth potential Potential competition Company/market fit Select one or more segment to target based on above criteria.