P 1.5 Gate 0

Development Team

P 1.5 Gate 0 – Meeting AgendaI. Introduction Haller

II. RTDP SummaryA. Emulsion Technology JB. 529A Z

III. Film Formulation & Cost Savings Haller

IV. KMCP/Manufacturability StatusA. Materials 1. Emulsions B 2. Dispersions D/WB. Sensitizing H/R/KC. Finishing FD. HSE ME. Patent/Legal H/Z

V. Systems F/B

VI. Closing HallerA. KMCP Check List/ScheduleB. Risks/ConcernsC. Conclusions/RecommendationsD. Discussion/Signing

P 1.5 Gate 0 – Introduction• P 1.5 is the last of a long line of cost reduction

programs aimed at:1. Transparent introduction2. Minimizing impact on customer performance

features3. Spreading Ag reductions over a number of

evolutionary steps• The P programs encompass a number of

changes including coupler and emulsion changes to reduce Ag coverage and product cost

• The sequence of the P programs is alsoimportant in that some technologies need tobe introduced at certain times to enableother technology introductions

P 1.5 Gate 0 – Introduction• P 1.5 currently contains the following

technologies:1. 529A at 10% of the Cyan imaging coupler –

more reactive than current ACQ coupler and new coupler solvent set and level

2. Higher gel laydown in the cyan record to maintain gel/junk ratios in the cyan with higher coupler solvent 529A/ACQ coupler blend and higher SOC lube levels to maintain POD performance

3. New Slow Cyan emulsion for improving the process sensitivity response with the 529A coupler

4. Potential faster Fast Cyan emulsion to enable more Ag reduction and improve process sensitivity (through lower FC blend ratio)

P 1.5 Gate 0 – IntroductionChanges across Print Products

• Vision:– Implementing 529A at 10%– Implementing the new slow cyan and faster fast

cyan emulsions– Additional gel to cyan layer and higher M160 wax

level in the SOC• Premier:

– P 1 slow yellow– P 2 slow cyan and faster fast cyan emulsions

• 70 MM and A:– P 1 slow yellow– P 2 slow cyan and faster fast cyan emulsions

P 1.5 Gate 0 – Risk/Concerns at Gate C

• Level 2– Process sensitivity change with 529A– Color reproduction with 20% 529A (concern with

future P programs)• Level 1

– Color reproduction with 10% 529A– Dark fade degradation– 529A polymorphism (HAZE test in place)– HPLC T-power testing accuracy

P 1.5 Gate 0 – Risk/Concerns at Gate C

Gate 0Level 3 0Level 2 1Level 1 4

P 1.5 Gate 0 – Customers/Sponsors

• Sponsor:– MR EI WW Film Technologies

• Customers:– EM EI WW Print/Distribution SPG– JG Global Capture Flow– TZ GECF RFS Sensitizing

• Customer Representatives– GB Global Capture Flow– FG GECF RFS Sensitizing– LX EI WW Print/Distribution SPG– FD EI CTS

P 1.5 Gate 0Closing

P 1.5 Gate 0 ClosingStoplight Chart Status

• All items complete• Ready to proceed to Gate 2

P 1.5 Gate 0 Closing - Schedule

P 1.5 Gate 0 ClosingRisks/Concerns

1. Process sensitivity change with 529A [C/Chris - Level 2]STATUS: Making adjustments to the aim to account for the shift. Will also attempt to minimize shift with formulation/emulsion changes.

2. Impact of Ag price and component changes on UMC savings for Pearl 1.5 [C/B, Level 2]STATUS: The cost savings changes radically depending on pricing standards – will attempt to increase Ag savings to improve position. (NEW)

3. Color reproduction with 10% 529A [C/P, Level 1]STATUS: No issues seen in recent demos– will confirm in additional demos

P 1.5 Gate C/0 ClosingRisks/Concerns

4. Dark fade degradation [C, Level 1]STATUS: Will verify dark fade position,not expecting an issue due to productusage.

5. 529A polymorphism (HAZE test in place) [SW - Level 1]STATUS: Will monitor future batches for haze specification.

6. HPLC T-power testing accuracy [TR, Level 1]STATUS: Test developed and in place – need experience with future batches.

P 1.5 Gate C/0 ClosingRisks/Concerns

Gate 0Level 3 0Level 2 2Level 1 4

P 1.5 Gate C/0 ClosingConclusion

1. Initial sensitometric and physical tests have been within or close to specifications for both the wide and narrow coatings.

2. Coating quality was seen to be comparable to current product.

3. Phase C activities for both the 529A and new emulsions are completed.

4. Fluctuations with silver and component prices continue to have a significant impact on cost saving potential for the P programs.

P 1.5 Gate C/0 ClosingRecommendations

• Based on the data and information, the team recommends the following: Passage of Gate 0 for P 1.5 Continue to address the risks facing P 1.5 in a

timely and efficient manner Update formulation to meet the new modified

aims Ramp-up of P 1.5 coatings and customer

assessments Continuation of work to drive to Gate 2