STATEMENT OF CAPABILITIES Statement of Capabilities

STATEMENT OF CAPABILITIES

Statement of Capabilities

Overview now is the time for all good men to come to the aid of their country an

Levin Consulting is a worldwide channel consulting firm specializing in the consumer electronics and technology industry. For the past 22 years, our senior team of industry consultants has successfully developed strategies, implementation and strong results for companies of all sizes. Acting as a market accelerator and mentor, our #1 objective is “the profitable sell-through of technology products”.

Today’s business climate dictates that companies run efficiently and spend their money wisely. Whether you’re new to retail, or just looking to improve your bottom line, there’s no better investment than working with Levin Consulting.

Having worked with many of the top technology companies such as Intel, HP, Samsung, Toshiba, Fujifilm, Fujitsu, Cisco, Logitech, Canon and others, Levin Consulting provides a range of services that include:

1. Market and competitive intelligence

2. Retail and Reseller go-to-market strategy development 3. Market share growth strategies

4. Geographic growth strategies 5. Channel development

6. Product launch strategies and implementation plans 7. Terms and Conditions analysis and recommendations 8. End-user demand programs through your channel partners 9. Channel events strategies and implementation

10. Licensing management

Our core business is split into three divisions: 1. Channel Consulting

2. Channel Events 3. Brand Licensing

Channel Consulting now is the time for all good men to come to the aid of their

A major part of consulting projects is the development of a strategy that meets the needs of the individual client. Effective strategies are dependent upon the recognition of speed-to-market, and market-competitive programs and pricing. Whether you want to launch a product, increase market share, enhance margin or access new markets, our team works in conjunction with you to create and implement executable strategies that achieve measurable results.

Levin Consulting leverages 300 years of combined experience in the North American retail channel to provide support and strategic insight for our clients. The Levin Consulting team has spent many years forming senior-level channel relationships with leading retailers, resellers, distributors, service companies and others in the industry. These rich relationships allow our people to understand the intricacies of a variety of business models and the requirements to partner with key accounts. We do not hesitate to put those relationships to work to maximize each client’s channel success.

Our ability to focus on all aspects of a company’s marketing and sales efforts enables Levin Consulting to provide our clients with that which drives our business on a daily basis...the profitable sell-through of consumer electronics and technology products. By empowering our clients to always sell their products in a profitable fashion, we assure their growth and success.

We stand ready to make an immediate impact on your business by adding real-world channel experience to your team. Our consultants are expert alliance-builders, having spent over two decades cultivating senior-level relationships with the leaders in the technology industry. Our unique perspective is drawn from work within and for the reseller, end-user, distributor and manufacturing communities.

Consulting Project Examples:

Levin Consulting works with companies on a retainer or project basis. This is a sampling of project work we have done, with each project specifically tailored to the individual needs of the client.

1. Ingredient Awareness Project for Multinational Ingredient Manufacturer Overview

Levin Consulting was engaged by a multinational manufacturer of vital internal ingredient components, utilized in video displays for consumers and a variety of vertical channels. The geographic scope of this project has been North America, Europe (UK, France and Germany) and China.

Objectives and Methodology

Levin Consulting was retained by the client to assist in creating quantifiable gains in market share for the OEMs that use the specific ingredient component in their display products. The agreed-upon strategy was to focus on strategic accounts in each geography, developing and nurturing relationships between the client teams and each targeted account. A clear value-proposition and a list of differentiators were developed and communicated to both parties.

Guidance and assistance was provided in the execution of marketing programs, in-store merchandising, training programs and evangelism programs. Levin assisted with the development and tracking of strategic and tactical objectives, and with the management and support of field training partners and training activities.

2. Retail Pricing Project for Tier 1 Manufacturer Overview

Levin Consulting was engaged by a multinational Tier 1 manufacturer to determine the factors related to price instability in the North American market for supplies related to their computer peripherals business. The price instability was disrupting their overall business strategy for the market.

Objectives and Methodology

Levin Consulting investigated the pricing practices and retail strategy of competing brands in the market. This included how the programs differed for various retail segments: Consumer Electronics, Warehouse Club, PC Specialty, Office Superstore, and Online Resellers.

Information was provided to the client showing the pricing breakdown for margin %, standard cost prices, soft dollar programs, Market Development Funds and advertising Co-Op, Net/Net, Back End Rebate, MAP policies, product bundles, etc. Levin determined the reasons for the pricing to be lower than in other markets, the drivers that caused the problem and how they came in to play.

Levin Consulting provided information on what competing vendors were planning to do to manage the problem and, more importantly, recommendations to the client on how they could correct and control the problem. Based upon feedback from the channel, we made additional recommendations on how to improve the client’s business and increase their share in that specific retail market.

3. Retail Profitability Project for Multinational Tier 1 Manufacturer Overview

Levin Consulting was engaged by a Tier 1 computer peripheral manufacturer to help improve its profitability in the retail channel. The geographic scope of the project was North America and Europe.

Objectives and Methodology

All aspects of Client’s current retail programs were reviewed, validated against the current market requirements, and recommendations were made to drive greater profitability in the channel. Levin Consulting conducted a review of both internal data (provided by Client) and external data (collected through interviews with the retail channel in all markets) to establish a set of recommendations on how Client should change its programs.

Changes to the program, by sub-channel of retail, were recommended. These recommendations included changes to:

• Hard margin

• Soft margin/dollar funding • Price protection policy • Use of distribution vs. direct • Inventory management

• Exchange rate management (from a channel perspective)

• Changes to Client’s process of collecting and analyzing channel data, resulting in a

better understanding of their retail business

Brand & Ingredient Licensing now is the time for all men and women to come to

Licensing is a way to reach new markets and channels, expand your retail account base, generate new enthusiasm for your brand or product, and receive an additional stream of income. We work to identify potential licensing partners in the technology and consumer products industries.

We facilitate a successful licensing process by identifying candidates, arranging meetings, assisting with negotiation of agreement and business points, evaluation and partner selection. We are also able to manage and administer your program, freeing you to maintain focus on

core products and organizational objectives.

Channel Events now is the time for all to come to the aid of their country and no

Expand your business by expanding your channels. Our Electronics Retail Summit events (held in the U.S. and Europe) provide you with a unique opportunity to sit down with buyers from key accounts at both traditional and non-traditional North American and EMEA electronics retailers.

Meet one-on-one with PC and CE buyers, in your specific category, from top North American and EMEA grocery, mass, drug, discounters, department, travel, automotive, buying groups, office, warehouse clubs and more. The pre-scheduled meetings are 20-minutes in length in a private meeting room, allowing you to display your products and have a meaningful discussion.

The Electronics Retail Summit is the most productive and quantifiable event of its kind. Quickly build relationships with retailers that will immediately impact your business.

Our Team: Key Personnel and others who can come to the aidxxxxxxxxxxxxxx

Adam Levin, CEO and Chairman

Adam started Levin Consulting in 1988, and oversaw initial consulting projects helping national and regional retailers enter the PC category. A major part of the work in those days was educating vendors on the importance of the retail channel and nontraditional retailers. Adam has assisted computer hardware, peripheral, accessory, software, and service on the strategy necessary for profitable sell-through at retail today. The work has included development of terms and conditions, creation of sales coverage models and determination of which accounts to target. Follow-up work has included the development of individual strategies for each major account, leveraging Adam's knowledge and relationships with the major retailers in our industry. Today, Adam primarily works with clients on setting overall channel and product strategy, covering the US, Canadian, European, and Asia/Pacific markets. He is a popular speaker at many industry events and seminars, and serves on several executive boards for technology firms.

Bob Marcantonio, President of Consulting Services

Bob brings more than 28 years of executive marketing and sales experience from both the retail and corporate reseller/distributor channels to Levin Consulting. A major catalyst and VP of Sales & Marketing of a high-tech reseller/distributor, he led the growth of the organization to revenues in excess of $250M and expansion into new markets. Expanding on his retail experience, Bob was General Manager for the Computer Superstore division of a large public leasing, services and POS organization. Building the division from the ground up, revenues exceeded $235M and expanded into new markets and geographies. His experience from inside the industry's largest retailers, manufacturers and distributors is the foundation for developing individualized, comprehensive strategies and solutions tailored to meet client objectives. Having a firm foundation in retail at an executive level, Bob has managed several of Levin's largest clients and product launches.

Ed Anderson, Vice President & Managing Director, Europe

Ed is the Managing Director of Levin Consulting Europe. He provides direction for the company’s European operations, including implementation of company strategy, development of and guidance on strategy for all client projects, and management of the day-to-day activities

of the European business. Prior to his role as Managing Director, Ed served many years in senior project management and lead strategist roles on a variety of consulting projects in North America and Europe. He has extensive retail and consulting experience working with vendors in the IT and CE industry on all aspects of their retail, brand, and product strategies. Ron Crocco, Vice President

Ron has 20+ years experience in executive sales, business development and marketing positions with leading technology manufacturers including Epson, NEC, Compaq and Toshiba. He has extensive experience in multiple channels of distribution and has excellent senior-level relationships in the US retail, reseller, and end-user communities. Ron’s well-rounded technology experience includes development of successful strategies and tactics for enterprise business development, effective reseller programs, and profitable retail distribution. Ron has created and developed high-level strategic alliances with major national retail accounts and facilitated strategic partnership deals with leading technology manufacturers. Denis Floch, Director, Europe

Denis has been managing European-wide projects for Levin Consulting since 2002. He has a wide experience in European product launch, strategy recommendation, budgeting, POS strategy, field team recruitment & management, logistic and tech support implementation. Prior to Levin Consulting, Denis worked in various marketing and operations positions with vendors such as 3Com, Dell, and Compact. His native French and fluent Spanish is key to his work throughout Europe.

Chips Godfrey, Vice President

Chips has over 30 years' experience in the consumer electronics channel in retail management and consulting in the US, Canadian and European markets. He served as the managing director for Levin Consulting Europe for six years, and held the position of Interim VP of Sales for several clients. Chips currently manages projects for the U.S./Canada retail market where he has developed strong channel relationships, and a firsthand understanding of the requirements for a vendor to be successful. Chips' long-standing retail relationships enhance client projects, and result in a better understanding of the programs, packaging and product mixes that fit for various retail channel outlets. His client work includes product launches from pre-development research to retail sell-through strategy, development and day-to-day management of sales and marketing programs, and implementation of vendor programs including interfacing with retailers.

Jim Kalasky, Vice President

Jim brings over 25 years of executive retail experience to Levin Consulting. Jim has served as vice president of merchandising at Best Buy, and later as sr. vice president of Egghead Software responsible for merchandising, product acquisition, and advertising. As a member of the senior management team, Jim was instrumental in the company's unprecedented transformation from a brick and mortar retail chain and software reseller to an Ecommerce company. Under Jim's leadership, the company was recognized by the Harvard Graduate School of Business, which published its case study, and later received the prestigious MIT Sloan School of Management Award for Web Transformation. Jim has extensive experience in channel marketing and analysis, product and category strategy and program development.

Jeff Morgan, Vice President

Jeff has more than 25 years of retail channel experience including more than 15 years of consulting experience with Levin Consulting. Jeff's retail channel experience includes key merchandising positions with office superstores, regional computer specialty stores and department stores. During his time with Levin Consulting Jeff has worked on a wide variety of projects for over 55 hardware, peripheral, accessory and software vendors, ranging from start-ups to Fortune 100 companies. Jeff leverages his strong relationships within the retail and vendor community to gather real-time feedback from key contacts. These discussions include formal and informal surveys for product feedback, customer satisfaction, and competitive benchmarking. Other client work includes product launches, retail sell-through strategy, development of sales and marketing strategies as well as assistance in finalizing the client's longer-term sales and marketing plans.

Alan Semel, Vice President, Business Development

Alan brings to Levin Consulting over 30 years of experience in consumer electronics retail management, sales and marketing and channel management. Alan recently spent ten years at Micros Retail, managing internal teams and channel partners focused on selling high-level software and service engagements to large retail, grocery and foodservice chains. In that position, he was responsible for product launches in North America, Europe, Latin America and Australia. Prior to Micros Retail, Alan worked for Kodak and for 12 years, he co-owned and managed a regional chain of retail electronics and computer stores. At Levin Consulting, Alan’s primary responsibility is to develop strong relationships with vendors and retailers, with a focus on large scale consulting projects and client business development efforts.

Windsor Wu, Managing Director, Asia Pacific

Windsor is a Shanghai native and previously worked at Merloni International in Shanghai. Merloni is Europe's largest home appliance manufacturer where Windsor was responsible for the East China, South China and Shanghai markets. Windsor has extensive experience working with distributors and retailers, and implementing sales and marketing strategies for foreign manufacturers trying to establish distribution in China. With his channel knowledge and background, Windsor provides product planning, market and channel strategy, best practice procedures, and other strategic assistance. Additionally, Windsor's knowledge of the appliance business and his work in bringing new manufacturers to market in China is an asset to Levin Consulting clients. Windsor manages the Levin Consulting office in Shanghai.

Client List - A sample list of our clients, both past and present: who cone antlers

 3com  Corel

 3M  Dell

 Adaptec  Digital River

 Adobe  FujiFilm

 Altec Lansing  Fujitsu

 APC  Gemalto  Apple  GN Netcom  Archos  HP  Audyssey  Imation  Avid  IMAX  Canon  InFocus

 Cisco  Intel

 Lexmark  SanDisk

 Logitech  Seagate

 McAfee  Shure

 Microsoft  Sling Media

 Monster  Speck

 Motorola  Susteen

 Norcent  SVA

 Olympus  Sylvania

 Phillips  Symantic

 Pogoplug  Texas Instruments

 Qualcomm  Toshiba

 Sampo  USRobotics

 Samsung  Wilife

Why Choose Levin Consulting: who can come to the aid of their country and not

Speed – with concentrated teams comprised of highly-experienced people working on your behalf, you can achieve the results you value faster than via any competing approach

Effectiveness – Levin Consulting will become fully immersed in your go-to-market issues, and fully committed to dealing with those issues as if they were our own. We help you get real traction faster, leveraging our extensive experience, market knowledge and relationships.

Relationships – Our team brings to every engagement a full list of industry relationships that can be leveraged on your behalf. Our success on your behalf will evolve from leveraging those many relationships to gather information, and to build channel, alliance and customer relationships.

Global Reach – offices in the US, Europe and China allow us to think globally like many of your retail partners. Our local presence provides you with an understanding of the culture, the business model and relationships needed to drive results.

Industry Events – Levin Consulting annually hosts two Electronics Retail Summit events in the U.S., allowing vendors to sit down and discuss their CE/Computer products one-on-one with leading North American retailers in a private setting.

Contact Information is really important for this projesddfdfdfdfdfdfdfdfdfdct. Ho

Bob Marcantonio

President, Consulting Services +1 216 595 9828 ext.108 bobm@levinconsulting.com Alan Semel

Vice President, Business Development +1 216 595 9828 ext.125