1. Electronic Ink Project Group #1 Judith MarceloAlex BalcellsFernando López Tomás NúñezCristian LuegJorge Román Joaquim Lizondo Prof. L.G. Cooper Product Management in The Digital Economy Anderson School March 2002

2. Agenda §Electronic Ink Overview §The Company. Gyricon Media Inc. §The Market: Retail Signage Market §Bayesian Network §Sensitivity Analysis §Recommendation §Q & A

3. Electronic Ink Overview §Conceptualized in the 70s. §Revived in the early 90s. §Material that is processed into a film for integration into electronic displays - e.g. sign labels, PDA, cellular phone, e-book reader.

4. BeadsFilm Voltage E-paper Electronic Ink Overview

5. The Company - Gyricon §Group that started the concept at Xerox PARC. §Spinned off from Xerox in 2000 §Headquartered at Palo Alto, California with office in Massachusetts; same backyard of its only competitor - E-Ink Corporation.

6. The Retail Signage Market §Point of purchase is an integral element in the advertising arsenal §Each week Target delivers 3 planeloads of signs from the company’s production center §Spends $250,000 per week on changing signs §Home Depot carries 5 million sku’s ; 14,000 of these items change prices on any given day. §Fines are served for violations of the state's item-pricing laws.

7. The Retail Signage Market

8. The Projected Key Benefits §Cost savings in labor, materials, logistics and price accuracy fines §Price Integrity §Positive Customer Response §More effective promotions §Dynamic pricing

9. The Retail Signage Market Bowling Strategy Cell phone Wireless Traffic Signage E-book reader PDA Retail Signage Airports, train stations.. Energy c. + Flexibility = Price ++ Legibility ++ Color - Video -- Energy c. +++ Flexibility ++ Price ++ Legibility ++ Color + Video -- Energy c. + Flexibility = Price + Legibility ++ Color - Video -- Energy c. + Flexibility ++ Price ++ Legibility ++ Color - Video --

10. Bayesian Network Bayesian Network slide (E-INK PROJECT). UCLA, March 2002

11. Bayesian Network’s Major Parts Bayesian Network’s parts slide (E-INK PROJECT). UCLA, March 2002

12. Strategic Partnership Strategic Partnership slide (E-INK PROJECT). UCLA, March 2002

13. End User Acceptance End User Acceptance slide (E-INK PROJECT) E-ink Project. UCLA, March 2002

14. Technology Threat Technology Threat slide (E-INK PROJECT). UCLA, March 2002

15. Company Threat Company Threat slide (E-INK PROJECT). UCLA, March 2002

16. Results

18. Sensitivity Analysis

20. Recommendation Speed up the development of the electronic ink technology together with the partners. Move rapidly in the Retail Signage Market. Be on the watch out for other competitors. Develop and attract more investors to the business.

21. Thank You!