This presentation highlights the benefits of digital printing and the use of variable data for direct mail marketing.

1. Digital Color Printing Trends and Opportunities Kipenzi Chidinma Marketing Director 2/25/2011 1

2. Digital Color is Exploding 8xFaster Growth Than Traditional Print! Compound AnnualGrowth Rate Digital Color Traditional 2/25/2011 Source : CAP Ventures Source: CAP Ventures 2

4. Print on Demand

5. Variable Content

8. Of four-color jobs are already less than 5,000

9. Of printers cite turnaround pressure

10. Digital Color will lead growth

11. Expecting their variable printing to increase in the coming year

12. Source: NAPL

13. Source: CAPV

14. Source: INTERQUEST

16. Number of steps calculated based on address info

17. Turn by Turn Directions from house to store

18. #1 Selling Shoe in its category while campaign ran, (Sears)You can hike there in only 21,120 steps. But you might want to wait till you have the shoes. 2/25/2011 2/25/2011 4 4

19. What is Personalized One to One Marketing? Personalized Marketing is a way to have pictures, graphics, messages, offers, and calls to actiondiffer according to the needsof an individual recipient. It is much, much more than changing the address block. 2/25/2011 5 2/25/2011 5

21. Communicate and Sell Ideas - Up 88%

22. Timely Payment of Invoices - Up 30%

23. Learning and Recall - Up 55% to 78%Source: CAPV 2/25/2011 6

24. 3/20/2008 Color + Personalization =Increased Response! Plus 44% Plus 500% Plus 45% Plus135% Source: Digital Print Council 7

25. 2/25/2011 8 The Power of Personalized One to One Marketing A 34% faster rate of response A 48% increase in repeat orders A 25% greater average value of each order A 32% increase in overall revenue Source: CAPV Study for IBM

26. 2/25/2011 9 Cost per Response – Not Cost per Piece Example: Traditional Campaign Budget: $100,000 Size of Mailing 285,714 Cost per Direct Mail Piece $.35 Response Rate* 1.5% Responses 4,286 Cost per Response $23 Source: Direct Mail Marketing Association

27. 2/25/2011 10 Cost per Response – Not Cost per Piece Example: Variable Content Campaign Budget: $100,000 Size of Mailing 166,667 Cost per Direct Mail Piece $.60 Response Rate* 5% Responses 8,333 Cost per Response $12 Source: Romano & Broudy

28. 2/25/2011 11 Impact on Response Generation Example: Campaign Budget = $100,000 TraditionalVariable Content Cost Per Piece $ 0.35 $ 0.60 Response Rate* 1.5% 5.0% Size of Mailing 285,714 166,667 Responses 4,286 8,333 Cost Per Response $ 23.33 $ 12.00 Net/Net: 1:1 Marketing costs less per response.

29. 2/25/2011 12 Impact on Revenue Example: Campaign Budget = $100,000 TraditionalVariable Content Cost Per Piece $ 0.35 $ 0.60 Response Rate* 1.5% 5.0% Size of Mailing 285,714 166,667 Responses 4,286 8,333 Conversion Rate 20% 20% Revenue Per Sale $ 200 $ 200 Total Revenue $ 171,440 $ 333,320 Which campaign would you run?

30. 2/25/2011 13 Forms of Digital Data: - Printed Marketing Pieces - Customized Postcards - Direct Mailing Pieces - Customized Magnets - Targeted Mailings - Customized Printed Materials