1. Mobility: What Every Corporation Needs To Know About Consumer Attitudes & Behavior Bren School Corporate Partners Summit University of California, Santa Barbara May 12-13, 2005 Paul Leinberger Global Director NOP World One Park Plaza, Suite 700 Irvine, CA 92614 pleinberger@nopworld.com

2. Personal Values Consumer Attitudes Consumer Behavior

3. Theme for 2005: Focus Shifts to Family, and Freedom A New Identity Forming % of Americans 13-65 saying value is extremely or very important to them 2005 Roper Reports Worldwide Total Population Weighting

4. ‘Dream’ Increasingly Means ‘Choice’ % saying “very much” what American Dream Means to them Top 11 of 16 items Roper Reports 2004-1 +5 +2 +4 -- -2 -- -3 -4 -3 +6 Point Difference from 2000 Even more true for $75K+: +12 from total public

5. Relations with Foreign Countries And Terrorism Tops List of Concerns % who say they are personally concerned about the following Pt. Diff. From 2002 2001 +3 -8 -4 +8 -3 +3 -2 -2 - -2 +1 +14 N/A -8 +11 -4 - -7 -6 -4 -9 -12

6. Top Environmental Concerns % who say the following is a very serious environmental problem… Pt. Diff. From 2002 2001 -6 -4 -3 - +1 -8 -3 - -6 -10 -2 -7 -3 -15 -6 +1

7. Fewer Americans Are Educating Themselves About The Environment 52% sometimes/often read an article, watch a television show, or use some other resource to seek out information about the environment -9 points from 2002 -15 points from 2001

8. Less Interest or Less Publicity = Decline in Environmental Knowledge % who respond how much they know environmental issues and problems 42%57% +6 points since 2002 -6 points since 2002

9. Time and Money: Obstacles for Environmental Participation % who say following are a major or something of a reason for not doing more about the environment Environmentally safe alternatives are too expensive I’m so busy I don’t get around to making the changes in my lifestyle which I know I should I don’t believe products which are labeled environmentally safe are any safer than others The government is not addressing environmental problems and they should have to solve them Environmentally safe alternatives don’t work as well Others aren’t making sacrifices I can’t solve problems alone My family wants products that that aren’t environmentally safe but won’t accept alternatives Large companies are causing the problems & should have to solve them

10. Americans Lack Trust in Organizations to Achieve Economic and Environmental Balance % saying listed group they trust the most to achieve a balance between economic development and environmental protection Pt. Diff. From 2002 +1 -2 +1 - +1

11. Hybrids Rank High With Influentials % saying the following thing is going to be “hot” in 2005 77% Large screen plasma TVs 68% iPod and downloading music 68% Digital video recorder like Tivo 59% Hybrid vehicles 41% Reality TV Shows 37% Low carb diets Influentials point diff. from TP +4 +8 +3 +10 - 10 - 8 Dec 2004 Roper Reports Outlook Survey

12. A New, Better Take on Automobiles Dream Car: A Green, Sporty SUV Influential Women are most likely to say their dream car is… Reliable (80%, +10 all women) Safe (72%, +8) Economical (51%, --) Green (47%, +26) Family-oriented (34%, +1) Sporty (29%, +1) Powerful (27%, +3) Luxurious (25%, +4) They’re most likely to say it’s an SUV (31%, +9) or a four-door sedan (26%, -8) 4 in 10 Influentials are interested in buying a hybrid (vs. 1 in 4 of total public) Roper Reports 2004-3 and April 2004 RR Automotive surveys

13. Hybrids Reach New Heights % who say they have heard of the following engine or vehicle types * Hybrid vehicle: a combination of gasoline engine and electric motor ** Bi-fuel engine: operates on gasoline and natural gas 2005-04 Q5

14. Hybrids Are Closing The Gap % who say they are interested in buying the following engines or vehicle types in the next four or five years * Hybrid vehicle: a combination of gasoline engine and electric motor ** Bi-fuel engine: operates on gasoline and natural gas 7 pts. 2005-04 Q6

15. West Chooses Hybrid Over Gasoline Powered % who say they are interested in buying the following engines or vehicle types in the next four or five years A.I.* North East Mid- West SouthWest 62%42%61%55%54%61%39% 46454837415149 2223 18 2428 27142922192219 31182425242628 26253025213024 25172317262519 Gasoline powered engine Hybrid vehicle Electric vehicle Diesel engine Hydrogen powered engine Bi-fuel engine Fuel cell 2005-04 Q6 * Automotive Influentials

16. Pruis Hybrid Demand Twice The Rate Of Sales (Among 1 Year Intenders, Q4 2001 to Q1 2005) Source: AFI Light Vehicle Report Prius demand peaked in Q3 2004, with demand at 5 times the rate of sales. Prius demand is currently twice the rate of its sales. And new Prius broadcast advertising started in March Prius demand peaked in Q3 2004, with demand at 5 times the rate of sales. Prius demand is currently twice the rate of its sales. And new Prius broadcast advertising started in March

17. California Leads Hybrid Market Source: Green car congress / R.L.Polk & Co. Hybrid Registrations: up 81% in 2004 compared to 2003 (Total hybrid vehicle registrations: 83,153) Toyota : 64% market share Honda: 31% market share Top 5 in new hybrid registrations 2004 RankCity# 1Los Angeles10,399 2San Francisco8,051 3Washington DC6,473 4New York3,779 5Seattle2,857

18. Hybrids Going Mainstream? Hybrid Market Expansion Tax incentives Purchase motivations Different designs New choices Gas price Fuel economy Consumer value Auto prices …etc

19. % who say how important miles per gallon is to them in automobile they drive 92% American consumers say MPG is extremely or very important (+5 pts. from 2004) 20042005 Extremely important46%55% Very important4137 Not too important85 Not at all important52 60% Females 61% HHI < $49.9K Americans Pay More Attention To The Gas Gauge 2005-04 Q8

20. Thank You! Paul Leinberger Global Director of Market Opportunity NOP World One Park Plaza, Suite 700 Irvine, CA 92614 pleinberger@nopworld.com