1. Competing with HP and Lexmark Overview In today’s marketplace, knowledge of your product is just not enough. With all the competition today, you need to know your competition’s strengths and weaknesses are as well. Being able to quote page speeds, accessories, and potential solutions is good, but knowing how your competition is going to attempt to steal your prospect, and how to combat their sales strategy is just as important. Within the Printer marketplace you will see two major competitors, Hewlett Packard (HP) and Lexmark. HP and Lexmark effectively own approximately 90% of the Printer marketshare today, which means that 9 out of 10 times you approach an account, you will come across one or both of these competitors. HP and Lexmark are two distinct companies, each with their own sales, service, and support structure. These two competitors each have strengths and weaknesses that, once learned, can be used to your advantage when attempting to place Kyocera Mita Printers. Over the next few slides, we will go over the many different strengths and weaknesses of both HP and Lexmark. Each slide will contain information on the sales strategies of the manufacturer, along with information on how Kyocera Mita provides a superior service when compared to the competition. It is in your best interest to become as familiar as possible with your competition. By understanding how your competition operates, as well as what sort of product they offer, you will be able to demonstrate the superiority of Kyocera Mita while punching holes in the sales strategy of your competition. The quality of your products can only carry you so far, while your knowledge of the competition can help push you over the top.

2. Competing with HP and Lexmark HP’s Weaknesses · All Laser Printer engines are OEM’d (Canon) · Consumables are offered by 3 rd party organizations, causing increased consumable prices · Depot service requires “drop-off/pick-up” of product · Each Printer requires its own unique Print Driver · All-in-One consumables container creates higher CPP · Known as a “Printer Company” with no real knowledge of MFP products Kyocera Mita Advantage  Kyocera Mita products use a Universal Driver, removing the need for excess training & maintenance.  The Ecosys concept of Printers provides customers with a low Printer Total Cost of Ownership (TCO) due to their high-yield non “all- in-one” toner and drum.  Kyocera Mita Printers are sold and serviced by the same organization, giving customers one source for answering questions.  Kyocera Mita parts and consumables are manufactured only by Kyocera Corporation. This means that 3 rd party vendors cannot force the price of consumables to change by flooding the market with “knock-off” consumables  With continuing pressure on companies to save money, people are beginning to look for more cost effective solutions. This means that people will consider alternative vendors to HP when considering their next purchase  Kyocera Mita is a company that has strong roots in both MFP and Printer products. With several years in both markets, Kyocera Mita has the benefit of being seen as both a Printer and MFP company. Vs. Hewlett Packard HP’s Strengths · Brand name recognition · Multitude of resellers & service depots · Entrenched in MIS/IT community as leading Printer provider · Distribution in Retail, Online, Direct, and VAR channels · Own 80+% of market share of Monochrome Printers · Overall market mentality is “If it’s not HP, I won’t consider it” Points to Stress  Low Total Cost of Ownership (TCO)  Universal Driver for easier product maintenance and training  Sales and Service support all from one location  Long-life, High-yield consumables  Multiple awards won from BLI, BERTL, Better Buys for Business, and PC Magazine  Utilities/Software for MIS/IT, geared toward simplifying administration  3 rd party software solutions Direct Competition Kyocera Mita / HP FS-1010  LJ 1200 FS-1800+/FS-1900  LJ 2200 FS-3800  LJ 4100 FS-9100DN  LJ 8150DN FS-9500DN  LJ 9000DN

3. Competing with HP and Lexmark Vs. Lexmark Lexmark’s Strengths · Strong product name recognition throughout MIS/IT · Large VAR/Online/Retail reseller base, along with Direct Sales via Lexmark’s Website · 2 nd largest market share (15%) within Printer Industry · Multiple manufacturers OEM Lexmark to compliment their own product line · Seen as the 1 st alternate choice to HP · PREBATE toner program seen as an environmentally friendly and cost- effective program Strong hold in select vertical markets Lexmark’s Weaknesses · Seen as a secondary player within marketplace · PREBATE program is seen as a hassle to participate in, due to requirements from Lexmark · Consumables are offered by 3 rd party organizations, causing higher consumable prices · Maintenance is offered through Depot service, or via On-site service at a premium · Each Printer requires its own unique Print Driver · All-in-One consumables container creates higher CPP · Lower TCO is dependant upon participation in PREBATE program. Known as a “Printer Company” with no real knowledge of MFP products and support requirements Kyocera Mita Advantage  Kyocera Mita products use a Universal Driver, removing the need for excess training & maintenance  The Ecosys concept of Printers provides customers with a low Printer Total Cost of Ownership (TCO) due to their high-yield non “all-in-one” toner and drum.  Kyocera Mita Printers are sold and serviced by the same organization, giving customers one source for answering questions  Kyocera Mita parts and consumables are manufactured only by Kyocera Corporation. This means that 3 rd party vendors cannot force the price of consumables to change by flooding the market with “knock-off” consumables  With continuing pressure on companies to save money, people are beginning to look for more cost effective solutions. This means that people will consider alternative vendors to Lexmark when considering their next purchase  Kyocera Mita is a company that has strong roots in both MFP and Printer products. With several years in both markets, Kyocera Mita has the benefit of being seen as both a Printer and MFP company Points to Stress  Low Total Cost of Ownership (TCO)  Universal Controller, and Universal Driver for easier product maintenance  Sales and Service support all from one location  Long-life, High-yield consumables  Multiple awards won from BLI, BERTL, Better Buys for Business, and PC Magazine  Utilities/Software for MIS/IT, geared toward simplifying administration  3 rd party software solutions Direct Competition Kyocera Mita/Lexmark FS-1010  E322 FS-1800+  W812 FS-1900  T520 FS-3800  T522 FS-9100DN  W810DN FS-9500DN  W820DN

4. Competing with HP and Lexmark Additional Material to Support your Case Product SpecificItem Code Resource Guides FS-1010 87164024 FS-1800+ 87164064 FS-1900 87164027 FS-9100/9500 87161583 Primers FS-1010 87164023 FS-1900 87164025 FS-9100/9500 87161582 Counterpoints 9500 vs HP 9000 87164053 9500 vs Lexmark W810 87164069 9500 vs Xerox N/4525 87164120 Awards BERTL FS-9500DN 87164046 FS-9100DN87164045 Best of Best87164116 FS-8000C87164044 BLI FS-3800N87164068 FS-9100DN* FS-9500DN* Better Buys for Business FS-9500DN* *- Electronic File Only Market Specific Item Code Workgroup Guides Small Workgroup87161098 Printer Application Guide87160891 Online Resources Available from DealerNet Competitive Pricing Charts Electronic Copies of Resource Guides/Primers Electronic Copies of Awards