1. “Views from the Inside & Out” Assessing the Landscape & Future of the Industry Marc Reisch Special Advisor Kohlberg Kravis Roberts & Co. PRIMEX February 12, 2003

2. Print Media – Colliding with the Future!

3. Making the Prepress-Printer- Publisher-Paper “Connection” Collaborate Cooperate Compete

4. Examples of Excellence Dell Computer Southwest Airlines WalMart

5. Publisher CEO – Primex 2001 “Publishers Must Develop Scale to Increase Leverage Against All of Their Key Constituencies”

6. Scale is “Process Power” Scale is in this Room Today!

7. Waste in the Value Chain Quality of Information Complexity Flexibility Standards Control of Variable Inputs

8. Planning Designs Inventory Forecasts Pages Logistics Circulation Inventory on Floor by Mill Customer Loading by Mill Customer Forecast by Mill Customer Machine Planning Labor Planning Machine Trimming Logistics Benefits: Labor Planning Press Planning Sales Asset Utilization Inventory Reduction Space Utilization Logistics Planning Cost Reduction Cost Reduction Cost Reduction Customer DataPrinter Data Paper Mill >>> <<< >>> <<< Supply Chain Transparency

9. Sun Microsystems Announcement – 2/10/03 “This is an Attack on the Cost & Complexity of …Computing. It’s More of an Integrated View Than We Have Had in the Past”

10. Where We’ve Been… ContentProviderContentProvider Create the RequiredContent Print&Bind Distribution Logistics Consumer Web Design Digital & ConventionalPhotography Management of Consumables & Component Parts Know Who You’re Trying to Reach Premedia for MultiplePlatforms

11. Where We Must Evolve… Understand: Who to ReachWho to Reach How to Reach ThemHow to Reach Them What Message toWhat Message to Reach Them With Reach Them With Support Products & ServicesSupport Products & Services from Image & Text Creation from Image & Text Creation through Storage & Manipulation through Storage & Manipulation to Print, Bind & Logistics to Print, Bind & Logistics Effective Hand-Off

12. This Industry Must Make “The Connection”!

13. Next Wave Of Consolidation Suppliers Are Not Earning Their Cost of Capital Must Have a Broad Service & Product Offering with Geographic Reach Must Be Both Customer-Focused & Manufacturing Excellent Must Be Able to Meet Short-Term Commitments Yet Be Committed to the Long- Term It's Always About the Right People in the Right Jobs

14. “Views from the Inside & Out” Assessing the Landscape & Future of the Industry Marc Reisch Special Advisor Kohlberg Kravis Roberts & Co. PRIMEX February 12, 2003