1. Leveraging Overseas Professional Consulting Services Bay Area CITD Seminar Series Tuesday, November 9th, 2004 Kemarra Inc. - Key Marketing Resources & Associates San Francisco USA Unlocking Your Market Potential: www.Kemarra.comwww.Kemarra.com

2. Why Expand Abroad ~Increased revenue large US corporations typically generate 50% of their business abroad ~Increased product longevity ~Protection against US downturn design and develop your product for an international market from the outset

3. You need commitment ~Increased complexity ~Higher risk ~Longer ROI ~Often more expensive than domestic expansion

4. Components ~Comparative location assessment ~Market viability analysis ~Competitive analysis ~Business plan ~Best company profile to present to new market ~Execution - identifying and securing new partners and customers

5. Pitfall Number 1 ~Jump on a plane ~Head to a hotel in the center of town ~Knock on as many doors as possible ~Get back on the plane ~Continue to develop the relationship over the phone or with email ??

6. Pitfall Number 2 ~Send over your best manager and sales person ~Set up a subsidiary or other legal entity ~Rent a big office ~Start making phone calls ~Expect the sales to start rolling in ?? ~Annual cost??

7. Using EDAs ~OK at a certain point in your evolution tax breaks, grants, training subsidies but need to have success in a region first ~Will not be impartial in a regional choice ~Interested in you setting up infrastructure ~You need to generate your own sales

8. Using Local Representation ~Phased approach with milestones ~Will test the water with sales and partnerships ~Provide the credibility of an established presence ~Use their sales network & cultural expertise ~Provide daily follow-up with client ~Should integrate you at appropriate points ~Provide a base for embedding your own personnel ~Help you create a subsidiary and hand over to you when the time is right

9. Working with Distributors and Resellers Local Sales Rep Customer 1 Customer 2 Customer 3 Direct Sales Activity: Generate Leads Reseller 3 Reseller 2 Reseller 1 Recruit & manage channels Close sale, supply & install Introduce lead Your Company

10. Finding a good overseas sales organization … ~Limits risk ~Reduces cost ~Faster sales cycle ~Better sales potential ~Step-by-step phased development

11. Leveraging Professional Consulting Services Bay Area CITD Seminar Series Tuesday, November 9th, 2004 Kemarra Inc. - Key Marketing Resources & Associates San Francisco USA Unlocking Your Market Potential: www.Kemarra.comwww.Kemarra.com

12. International Project Complexity x x x 12345678 9 Number of Countries Level of Complexity 1 2 3 x x x Project complexity increases by  of the number of countries involved

13. Location Assessment ~Follow your (potential) customer base ~labor ~office space & real estate ~tax rate/incentives (don’t go for tax breaks or incentives primarily - these should be icing on the cake. If you don’t sell your product, a tax break will not be much help). ~management structure options ~ownership structure ~legal environment - how protected are you – recourse in disputes, ownership rights on foreign investments, percentage ownership of companies, intellectual property rights, repatriation of profits and dividends, how are key staff paid... ~work visas ~incentives to employ – no social security tax first year, subsidies on new hires ~capital equipment – relief on export/import duties