E-Ink: Financing Growth Presented By: NOVITAS Harpreet Bagga Neelabh Singh Qasim Zaidi Vikash Kr. Malhotra Virendra Shukla

Context Company Name: E-Ink Time: March 4, 1999 Event: JC Penny signed for pilot test in 10 stores across 4 cities

What is E-Ink A product which could beam digital information form a wireless transmitter directly to a sheet of electronic ink that incorporated a printed antenna and a processor. Forecasts estimate large market potential for this technology: Re-usable newspapers E-books Graphical displays No market leaders, innovators could gain large market share

E Ink Applications Matrixed Displays Semgented Displays

Who Is E Ink Founders – highly capable fund-raisers Jacobson: MIT Media Lab Director, “a visionary” Wilcox: CEO, Harvard MBA, tech background Rubin: Lexis-Nexis founder, publishing “icon” Additions Albert & Comiskey: Jacobson’s students, developers Culture R&D Optimistic Problem solvers

E-Ink Goal To revolutionize print communication through electronic ink displays To move from prototype to full-scale manufacturing, and maintain market excitement about the company. Pursue opportunities that could generate short term profitability while also serving to develop the technology along the path of radio paper

Definition of Core Competencies Provides potential access to a wide variety of markets Significantly contributes to the perceived customer benefits of the end product Should be difficult for competitors to imitate

E Ink Core Competencies Materials Development “Dreaming” “Productizing” Networking and Fundraising Need to develop manufacturing expertise

Competency to Products Tree: Competencies Support Products Technology& Finance Partners LAD/FPD/Radio Paper

Opportunity (Critical Path) Large area displays – Estimated Rev - $20 million (2003) & 100 million (2004) – Investment needed - $10 – 20 million – Relevant Market Size - $ 610 million – Burn Rate $0.9 million (will last for 9 months) Battery powered flat panel displays – Market Size $5 billion – Investment needed 30 – 50 million Radio paper – Market Size (Newspaper) - $60 billion – Investment needed $50 – 100 million

Large area displays Market Size: $610 million E-ink could be printed over large area- Scalable Economical (Half of the existing price) E-ink enabled signs could be changed instantly ( compared to 90 days time for LED) Expected market share- $100 million by 2004 Expected growth of 200% with LED

Flat Panel displays In 1998 total Flat Panel display sales  $14 billion Expected to grow to $25.9billion by 2004 E-ink’s focus:  Applications requiring a high-contrast, low- power, thin and ultra-lightweight display  Sales potential ->$7 billion by 2002

Flat Panel displays Vs. LCD E-Ink Direct Color Change Looks like real ink on paper Less than 1mm thick Flexible Lightweight LCD Requires a change in light transmission Lacks the appeal of ink on paper Thicker than 1mm Rigid Limited viewing angle

Publishing Radio paper is the ultimate aim for E-Ink U.S. Publishing Industry->$135 billion Manufacturing Cost->20%- 40%-> billion opportunity

Evaluation of their Critical Path Single Product for a single market and a single market niche Technology Evolution Step by Step Large number of patents including including license form MIT

Financing First Round Of Financing: $15.8 billion Still $9 billion in hand Financing Need:  E-Ink would need to invest $10-$20 million for Large Area Display  Additional $30-$50 million in financing for Flat Panel Display  Additional $50-$100 million for publishing industry

Challenges Choosing the right partner for both financing and technology development. Retain E Ink's creativity, drive while focusing the company on growth and the demands of a first-product introduction Develop the business model as E-Ink move along the “critical path”.

Stop Sleeping, its over !! Thank You