2. Navigating your Music

3. Wendy Jacobs Senior Manager MP3 Sales Development Matt Cherico Mobile Electronics Specialist Sales Development Doug Tessman Training Manager Secret Weapon

4. 8-tracks to MP3’s

5. FY10 Holiday-MP3 Wendy Jacobs

6. FY10’ Holiday- Car Electronics Objectives for Holiday  We will offer the devices, accessories and content services to enhance our customer’s overall experience. Customers will be able to enjoy their music and connect to the world no matter where they are or what they are doing Continue to focus on higher ASP, higher technology iPod Touch  Offer clear price point steps for non-Apple MP3  Introduce new portable entertainment solutions Continue to differentiate ourselves to the customer with great solutions and value through bundles We will sell  Holiday (Nov wk4- Dec)- 2.3 million devices  Dec alone – 1,950 million devices  4,563 MP3 players PER HOUR, EVERY HOUR this holiday  76 devices every MINUTE for 6 straight weeks

7. FY10’ Holiday- Car Electronics Objectives for Holiday Become the Headphone retailer of choice  Beats Expanded assortment (from 2 to 7 sku’s)  Expanded displays and DJ Experience zones  Tie-in’s to DJ Hero, Dr. Dre “Detox” album, and HP Beats laptop  New Headphone product launches in November  Drive upgrades with Headphone/device bundles

8. FY10 Holiday- Car Electronics Matt Cherico

9. FY10’ Holiday- Car Electronics  Full Solutions –Drive profitable growth in the Car Electronics category by focusing on full solution selling to create the best experience for the customer Why a full solution? –We are only providing the customer what they think they need  Bundling Strategy –Increase market share and be competitive with price –Give our customers a better priced full solution  Nov Week 4 thru December –350,000 units, 70,000 units per week…

10. FY10 Holiday- Car Electronics Doug Tessman

11. Car Electronics Installation  MP3 solutions –Factory Radio –FM –iSimple –Aftermarket solution  How Much for stall?  Did you want to play your______ in your car?  Do you have a factory radio or aftermarket? Wired modulator iSimple IS77 $89 Dynex DX-A1120 $45 Works on all vehicles No FM interference Frees up cig lighter Charges iPod Installation $49 ** FM transmitter Various brands $29- $95 Works on all vehicles Portable

12. Car Electronics Installation  MP3 solutions –Factory Radio –FM –iSimple –Aftermarket solution  How Much for stall?  Did you want to play your______ in your car?  Do you have a factory radio or aftermarket? Vehicle specific iSimple ISIM71 $149 Vehicle specific iPod control iPod can be hidden Charges iPod HD radio (opt.) Best sound quality Installation $49 Aftermarket deck Various brands $65 & up iPod control iPod can be hidden Charges iPod HD radio (opt.) Bluetooth (opt.) Best sound quality Installation $49 + $19**

13. FY10 Holiday- GPS Matt Cherico

14. FY10’ Holiday- GPS  Nov Week 4 thru December –1,800,000 units, 360,000 units per week, over 340 per store per week, 48 per day  Objectives for Holiday –Drive profitable growth in the GPS category by focusing on “connected” GPS technology and driving Rocketfish GPS accessory attachments to GPS PND Advantages of connected GPS: –Save Time= traffic, Save Money =fuel prices, Save the Environment = Ecorouting –Additional features and benefits »Use the power of the internet with Google Local search, Movie times, Weather, and more. Rocketfish GPS accessories –Private label accessories

15. FY10’ Holiday- GPS  Strategies and tools  New Technology

16. Why did we combine?  Common customer scenario –“I want to play my music in my car.” –“I want to listen to my music any time and anywhere.”  Optimize Current Labor Model  Watercooler post –How are you going to help your customers make this come alive?