Netbook EssentialsJanuary 7, 2009

Netbook Market

Opportunity

3May 13, 2008 3

The term netbook refers to a category of small to medium sized, light-weight, low-cost, energy-efficient, Internet-centric laptops

Market Opportunity

Market Size

* Key consumers: 1) First-time buyers seeking a low-cost introductory PC 2) Existing PC users looking for a low-cost second or third PC

for themselves or family

* Target Channels:1)Retail CE and mass3) E-tail2) 2nd tier retail, Telco

*Estimated market growth:5.2M units sold in 2008 to 50M units sold in 2012 worldwide (Gartner)

Market Enablers

* Cloud gets smarter and & reliable (WiFi & WWAN)

* Cloud service: Box.net by Dell, Mobileme by Apple

* Broadband mobility: WiBro & WiMax compatible

* LINUX OS customized UI ‘Simple’ by OEM

* Ultra low power & cost friendly CPU’s “Green”

* SSD vs HDD (Cost/Power balance)

* 8.9” – 10” screen sizes for portability

Consumer Usage Insights

* Environments: Home personal, out & about, coffee shop

* Always on (30 – 90 mins use)

* Net centric & Web Apps (Skype, Google Apps)

* Social network and content consume 70%

* Email & Personal information management

Why Netbook Accessories?

* Accessories enhance the users computing experience

* Accessories increase margin & revenue opportunity for the retailer

POS APOSCarrying Case 34% 37%Wired Mouse 17% 11%Wireless Mouse 21% 58%Security Lock 21% 35%

Notebook Attach Rates

Kensington Netbook Essentials

Consumer Pain PointsControl

Small form factor means that the track pad is quite small for using comfortably

Battery-life

Typical battery life of 3 hours for browsing, e-mailing & scribing. Video watching or game playing will reduce this time

Security

Commuting or just out for coffee, a netbook’s mix of portability and low pricing make it a compelling purchase but also a desirable target for thieves

Protection

The ultra portable nature of netbooks means that users want to take their netbook anywhere they go and need to keep them protected

*

Netbook PowerAdapter

NetbookMobile Mice

Netbook SecurityLock

Netbook ReversibleSleeve

Kensington’s Design

Inspiration

11May 13, 2008 11

casualpersonal

net-centric appsenjoyment

formalprofessional

multi-task appsproductivity

VS.netbooks notebooks

tech dad @ hometech dad @ home tech dad @ officetech dad @ office

Designed to blend with living space

Trends:

Nature inspired us to bring the outside in, through color, pattern, texture. Stabilizing neutrals provide practicality in a changing economic landscape. Not your average beige, these warmgrays break away from the typical neutrals association, by adding dimension with subtle red undertones.

Modern Tranquility

Home is an oasis of renewal. Haven, sanctuary, refuge - home is a wellspring of replenishment, a soothing respite from modern day clamor. A gossamer palette of hushed neutral hues evokes a sense of spaciousness with its quiet suggestion of color.

Organic Comfort

The repetitive cycle of nature comforts through its rhythmic essence. This color palette is a celebration of nature’s own; earthen hues with golden, sunlit undertones, deep, rich bark with fresh sprigs of green peppered throughout.

Pantone: Pantone View Home + Interiors 2009 IDBenjamin Moore: Color Trends, ArtDutchboySherwin Williams: Color Trends 2008Promostyl

Living Space Trends

Molded PMS Warm Gray 2C

Molded PMS Warm Gray 11C

Molded PMS Warm Gray 8C

Molded or Painted PMS 5435C

Molded or painted PMS 7494C

Molded or painted White Sikkens 508 B6

Molded or painted PMS 7493C

Pad printed PMS Warm Grey 2C

Pad printed PMS Black

Black C label w/ PMS silver 8001C text

PMS warm gray 3C w/ black text

Green for good battery level indication

Red for low battery indication

Ho

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sa +

oth

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larg

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urf

ace

sa

cce

nts

gra

ph

ics

/ ic

on

sp

rod

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lab

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LE

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Pad printed PMS 877C

Amber for functional indicator

Blue for Bluetooth connectivity

Molded or Painted PMS 5415C

Molded PMS Black C

Molded PMS Black

Living Space Color Palette

Kensington’s Netbook

Accessory Lineup

Netbook Reversible Sleeve idea: Just what you need for your netbook

K62911USSuggested Retail Price $14.99

* Protects your netbook wherever you go

* Fits netbooks up to 10”

* Carries netbook and accessories

* Reversible design

* Wireless connectivity eliminates messy cables

* Convenient on/ off switch maximizes battery life

* Compact design ideal for storage on the go

* Compact design for easy use and storage out on the road

* Built-in scroll wheel for convenient web navigation

* USB connection for easy plug and play functionality

K72345US

Suggested Retail: $24.99

Netbook Mobile Miceidea: Just what you need for your netbook

K72346US

Suggested Retail: $14.99

Netbook Security Lockidea: Just what you need for your netbook

* 10,000 easy to set combinations

* Slim-profile design

* Self-coiling cable extends from 3” to 6’

* Compatible use with any device utilizing a Kensington® security slot

K64588USSuggested Retail Price $24.99

Netbook Power Adapter idea: Just what you need for your netbook

* Universal brand power adapter

* Secondary power source stays in your bag

* Built-in USB power port for simultaneous charging of mobile devices

* Notebook tips included - Compatible with Acer, Dell, HP/Compaq, Lenovo, MSI Wind

K38047USSuggested Retail Price $49.99

Competitive Landscape

Website: No Dedicated Netbook Section

Collection of items offered as Netbook accessories at Target

Retail Stores

Belkin Strategy: Repositioning of 2 existing mice and 7’ sleeves as Netbook ‘friendly’

7’’ Sleeve: $19.99

Wired Mouse $14.99

Wireless Mouse $24.99

Website: No Dedicated Netbook Section, or Netbook Specific Products

Wireless Mouse (full size dongle): $24.99

13.3” Sleeve: $29.99

Wired Mouse: $14.99Product Competition

Netbook Wireless w/USB Reciever $24.99 in-stk 4/15 K72345

Netbook Wireless w/USB Reciever $24.99 in-stk 4/15 K72345

Netbook Security Lock $24.99 in-stk 4/1 K64588

Netbook Security Lock $24.99 in-stk 4/1 K64588

Netbook Wired Mouse $14.99 in-stk 4/1 k72346

Netbook Wired Mouse $14.99 in-stk 4/1 k72346

Netbook Power Adapter $49.99 in-stk 5/1 K38047

Netbook Power Adapter $49.99 in-stk 5/1 K38047

Netbook Consumer Reviews

Netbook Neoprene Sleeve $14.99 in-stk 4/1 K62911

Packaging Concept

May 13, 2008

Reduce Re-use Re-cycle

Earth-friendly packaging

PackagingStandardized packaging sizes improve merchandising

Reduces amount of

in-store Shelf space required

Compact Size

3.25 in

4.12

in

Merchandise Displays

Shared Netbook & Netbook

Essentials End Cap

Communicate the Netbook Story at Retail

• build category awareness • educate the consumer

• create context for netbook accessories

Netbook Essentials End Cap Graphics

Slat Wall End-Cap

Gondola End Display Netbook Essentials (accessories

only)

Netbook Accessory Bundle

Suggested Retail$39.99

* Netbook Reversible Sleeve

* Netbook Wired Mouse

* Netbook Security Lock

Pricing

Kensington Netbook Essentials Pricing

Product SKU Street DC In-Stock

Netbook Reversible Sleeve K62911US $14.99 April 09

Netbook Wired Mouse

Netbook Wireless Mouse

K72345US

K72346US

$14.99

$24.99

April 09

April 09

Netbook Security Lock K64588US $24.99 April 09

Netbook Power Adapter K38047US $49.99 May 09

2009 Product Roadmap* Netbook ‘back-up’ battery

– No need to connect to wall socket– +2 hours of additional run time

* Chat light– Illuminate video chat & keyboard keys– Most netbooks come with built in webcam– Growth of Skype/video for low cost calling

* Cases

- Launch broader range including 12” and touch screens

* Mobile hub

- Link & sync mobile devices

* Nano BT2.0 Dongle for headset & Smartphone connection

Summary

Why Kensington ?

* One-stop-shop category solution

* Best in-class product range

* Strong product roadmap

* Channel support / Program

* Merchandising support

References