1. COMPANY NEWS UPDATE Doug Olzenak - President

2. VISION With a progressive and proactive culture, Allied Vaughn will be an organization that provides industry-leading value to our customers, first by gaining a thorough understanding of their communications objectives and business goals, then by providing media solutions that will insure the maximum return on their communications investment.

3. Serving the Customer

4. Training

5. SALES

6. TRADITIONAL STRUCTURE

7. New Structure

8. Emerging Structure

9. New Structure

10. New Manufacturing and Delivery Model Large VHS Orders Large VHS Orders Peak loads Peak loads

11. Houston San Francisco Portland Seattle Raleigh Atlanta Orlando Tampa ALLIED VAUGHN REGIONAL OPERATIONS CONFIGURATION Minneapolis Milwaukee ElkGrove Livonia Washington D.C. NORTHEAST REGION NORTHWEST REGION SOUTHWEST REGION SOUTHEAST REGION Denver Phoenix Dallas Houston

12. New Manufacturing and Delivery Model Large VHS Orders Large VHS Orders Peak loads Peak loads Centralized Manufacturing Centralized Manufacturing –Optical Disc –CD and DVD –Fulfillment

13. New Growth Products US DVD Duplication Market

14. Operational Structure

15. What does this all mean?

16. Have questions?