E-DISTRIBUTION E-DISTRIBUTION INITIATIVEINITIATIVE

Ya-Ping ZhouYa-Ping Zhou

Greater China Director, NPESGreater China Director, NPES

Tucson, AZTucson, AZ

April 12, 2003April 12, 2003

Chinese Printing Chinese Printing MarketMarket

GDP 2001-2002GDP 2001-2002 7.3%7.3%

Printing establishmentsPrinting establishments 100,000100,000

EmployeesEmployees 2 million2 million

Annual book titles publishedAnnual book titles published 150,000150,000

MagazinesMagazines 9,0009,000

NewspapersNewspapers 2,1002,100

Paper consumption Paper consumption 3 million 3 million tonstons

Import market Import market (2001 (2001 equipment)equipment)

Computer-to-plateComputer-to-plate 78 78

Web offset pressWeb offset press 72 72

Sheet-fed offset pressSheet-fed offset press 81 81

Small sheet-fed offset pressSmall sheet-fed offset press 7 7

Other offset pressOther offset press 397 397

Web letter pressWeb letter press 34 34

Other letter pressOther letter press 143 143

Flexo pressFlexo press 25 25

Gravure pressGravure press 162 162

Web screen printing machineWeb screen printing machine 23 23

Flat screen printing machineFlat screen printing machine 200 200

Other screen printing machineOther screen printing machine 104 104

Other printing equipmentOther printing equipment 5,5945,594

Total unitsTotal units 6,9206,920

Import market Import market (2001 (2001 supply)supply)

Printing & writing paperPrinting & writing paper 1,390,000 1,390,000 tonstons

InkInk 24,700 tons24,700 tons

PS platesPS plates 2,875,000 sq.m.2,875,000 sq.m.

FilmFilm 3,810,000 sq.m.3,810,000 sq.m.

Top ten importsTop ten imports Multicolor sheet-fed offset printing pressMulticolor sheet-fed offset printing press Computer-to-plate systemComputer-to-plate system Perfect binding machinePerfect binding machine Digital printing pressDigital printing press Commercial web offset printing pressCommercial web offset printing press Newspaper printing pressNewspaper printing press Hard-cover book production lineHard-cover book production line Flexo printing pressFlexo printing press Converting machineConverting machine Digital proofingDigital proofing

* Years to 50 Million Users

0 10 20 30 40

1313

1616

3838

4*4*

Source: Cisco Systems

* Years to 50 Million Users

Internet impactInternet impact

Internet and printingInternet and printing 130 million computer users130 million computer users

300 million at end of 2010300 million at end of 2010

<5% printers and establishments use Internet for <5% printers and establishments use Internet for businessbusiness

80% printers and 95% distributors use Internet for 80% printers and 95% distributors use Internet for informationinformation

1-2% printers use online production1-2% printers use online production

E-Distribution E-Distribution InitiativeInitiative

ObjectivesObjectives Design and build a dual-language B-2-B, E-Design and build a dual-language B-2-B, E-

Distribution network platformDistribution network platform Establish an e-channel of communication between Establish an e-channel of communication between

NPES members and Chinese distributors NPES members and Chinese distributors Enable small and medium companies to expand Enable small and medium companies to expand

market share with minimum costmarket share with minimum cost

Platform elementsPlatform elements 5 Modules5 Modules

Platform engineering architecturePlatform engineering architecture Based on Windows Info Server & Oracle Database Based on Windows Info Server & Oracle Database

ServerServer Broadband support for voice and video interactiveBroadband support for voice and video interactive Two-site servers for redundancyTwo-site servers for redundancy Hardware firewall, software encryption for securityHardware firewall, software encryption for security

FUNCTION MODULESFUNCTION MODULES

1.1. E - E - InformationInformation

2.2. E - Business E - Business

3.3. E - Trade E - Trade

4.4. E - Training E - Training

5.5. E - E - AssistanceAssistance

E-Business E-Trade E-Training

PeopleEquipmentProcessesResources

E-AssistanceE-Information

ModulesModules

Trainees B2BCustomersDealersSuppliers

E-Business E-Trade E-Training

PeopleEquipmentProcessesResources

E-AssistanceE-Information

Login

ModulesModules

Trainees B2BCustomersDealersSuppliers

E-Information E-Business E-Trade E-Training

ModulesModules

E-Assistance

Trainees B2BCustomersDealersSuppliers

E-Information

E-Business

E-Trade

Home pageHome page

User Login

advertisement

E - Information E - Information ModuleModule

Chinese/English directoriesChinese/English directories

Virtual showrooms Virtual showrooms

NPES newsNPES news

Suppliers news roomSuppliers news room

AnnouncementsAnnouncements

World market newsWorld market news

DirectoriesDirectories

NPES MEMBER DIRECTORY

CHINESE DISTRIBUTORS DIRECTORY

CHINESE CUSTOMER DIRECTORY

News & announcementsNews & announcements

Virtual product Virtual product showroomshowroom

E - Business ModuleE - Business Module Online conferencing Online conferencing Distributor and customer data Distributor and customer data managementmanagement Sales and marketing managementSales and marketing management Product and service promotionProduct and service promotion Online receipt and delivery of sales and marketing Online receipt and delivery of sales and marketing

materialsmaterials Estimating, purchase order and invoice Estimating, purchase order and invoice

managementmanagement

E - BusinessE - Business

E - E - Trade ModuleTrade Module Chinese/English Directory of importers/exportersChinese/English Directory of importers/exporters

Online biddingOnline bidding

Online purchasingOnline purchasing

Online auctionOnline auction

Procedures and RegulationsProcedures and Regulations

E - TradeE - Trade

E - Training ModuleE - Training Module After-sale technical training offered for customers by After-sale technical training offered for customers by

supplierssuppliers

Web offset, flexo, CTP and others, customized by Web offset, flexo, CTP and others, customized by supplierssuppliers

Online training/learningOnline training/learning

Graphic arts institution educational courses and Graphic arts institution educational courses and certificate programscertificate programs

NPES China Training Center training programsNPES China Training Center training programs

Color management and quality control and technical Color management and quality control and technical standardsstandards

E - TrainingE - Training

After sales

Customized

Online training

Certificates

NPES Center

Standards

Demand for e-Demand for e-trainingtraining

Availability of PCs and Internet access Availability of PCs and Internet access Rapidly changing technologies, processes, Rapidly changing technologies, processes,

procedures, and resulting volume of information to procedures, and resulting volume of information to be absorbedbe absorbed

Increased need for educating customer and Increased need for educating customer and customer’s customers in order to achieve successful customer’s customers in order to achieve successful salessales

Increased demands for cutting costs Increased demands for cutting costs Not enough qualified employeesNot enough qualified employees Too slow to gather and process market informationToo slow to gather and process market information Globalization of corporations and digital workflow Globalization of corporations and digital workflow

require more effective ways of distributing require more effective ways of distributing knowledgeknowledge

E - training possibleE - training possible Access to anyone, anywhereAccess to anyone, anywhere

On-line access via 56K modem or On-line access via 56K modem or betterbetter

Broadband is better, but not requiredBroadband is better, but not required

CD-ROM courseware requires minimal CD-ROM courseware requires minimal platform (Pentium 3, 200 MHz, 64 MB platform (Pentium 3, 200 MHz, 64 MB RAM, 500 MB disk)RAM, 500 MB disk)

Member benefitsMember benefits

E-training Trainees(Potential buyers)

Qualifying

Trainee profile

Support through membership

Follow up & close sales

NPES members

NPES members

InfoFind

ArchitectureArchitecture

Training Environment

Registration, Security, Payment, etc.

Term Search

Quick Reference Descriptions

Text Definitions

Detailed Descriptions

Illustrations and Animations…Course A

Topic 1Topic 2Topic 3Topic 4Topic 5

Course BTopic 1Topic 2Topic 3Topic 4Topic 5

Course CTopic 1Topic 2Topic 3Topic 4Topic 5

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Registration, Security, Payment, etc.

InfoFind

Term Search

Quick Reference Descriptions

Text Definitions

Detailed Descriptions

Illustrations and Animations…Course A

Topic 1Topic 2Topic 3Topic 4Topic 5

Course BTopic 1Topic 2Topic 3Topic 4Topic 5

Course CTopic 1Topic 2Topic 3Topic 4Topic 5

Course DTopic 1Topic 2Topic 3Topic 4Topic 5

Course YTopic 1Topic 2Topic 3Topic 4Topic 5

Course ZTopic 1Topic 2Topic 3Topic 4Topic 5 Reference

What do you want to learn?

InfoFind ProfessionalSearch Engine

Quick Reference

Topics

Term 14, Term 2689Term 8344, Term 8345

Full Text

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Members

E - Assistance ModuleE - Assistance Module Export/importExport/import

Shipping and warehousingShipping and warehousing

Trade show calendar and participationTrade show calendar and participation

Market study and research Market study and research

Literature design and productionLiterature design and production

Advertising placementAdvertising placement

Management structureManagement structure

NPES CA Office

China Rep. Office China Training Center

Server Eng. Office

Rep. Office - NPES Rep. Office - NPES CenterCenter

Common objectiveCommon objective

Different structureDifferent structure

Resource sharingResource sharing

SupportSupport

FacilityFacility Head officeHead office

Room B, 22F Jian Hui Bldg. 922 Hengshan Rd., Shanghai 200030Room B, 22F Jian Hui Bldg. 922 Hengshan Rd., Shanghai 200030 Project managementProject management Data processing and contents editingData processing and contents editing Marketing and salesMarketing and sales

Technical officeTechnical office4F, 477 Aomen Rd., Shanghai 2000604F, 477 Aomen Rd., Shanghai 200060

System designSystem design system management and maintenancesystem management and maintenance

Server siteServer siteNA (located within an existing local IT company)NA (located within an existing local IT company)

Hardware serverHardware server 24-hour site maintenance24-hour site maintenance

Finance Finance (Nov. 02 - Oct. 05)(Nov. 02 - Oct. 05)

US Department CommerceUS Department Commerce $180,000$180,000 NPES matching fundNPES matching fund $380,000$380,000

TotalTotal$560,000$560,000

- Head office legal establishment- Head office legal establishment

- Onsite staff- Onsite staff

- Hardware and software- Hardware and software

- Marketing and promotion- Marketing and promotion

- General operations and taxes- General operations and taxes

NPES Shanghai CenterNPES Shanghai Center $203,000$203,000- Support personnel- Support personnel

- Office equipment- Office equipment

- Business expenses- Business expenses

NPES Rep. Office business revenueNPES Rep. Office business revenue- Membership fees- Membership fees NANA

- Service fees- Service fees NANA

TimetableTimetable November 2002 - April 2003November 2002 - April 2003

Preparation and legal establishmentPreparation and legal establishment

April 10, 2003April 10, 2003System structure design beginsSystem structure design begins

May 15, 2003*May 15, 2003*Proposed opening ceremony dateProposed opening ceremony date

July 1, 2003July 1, 2003Marketing promotion begins in China and USMarketing promotion begins in China and US

August 15, 2003August 15, 2003Basic function modules ready for useBasic function modules ready for use

December 31, 2003December 31, 2003Full function modules ready for use Full function modules ready for use

To participateTo participate MembershipMembership

Member access procedureMember access procedure

Member benefitsMember benefits

Member rights and responsibilitiesMember rights and responsibilities

ContactContact US project officeUS project office

PO Box 81928, San Diego, CA 92138-1928PO Box 81928, San Diego, CA 92138-1928

Tel:Tel: 619-238-4222619-238-4222 Fax: 619-237-0757Fax: 619-237-0757

Email: npeszhou@aol.comEmail: npeszhou@aol.com China Rep. OfficeChina Rep. Office

Room B203, 22F Jian Hui Bldg. 922 Hengshan Rd., Shanghai Room B203, 22F Jian Hui Bldg. 922 Hengshan Rd., Shanghai 200030200030

Tel:Tel: 86-21-6447-0118, 6407-3300 x 127, x128, x12986-21-6447-0118, 6407-3300 x 127, x128, x129

Fax:Fax: 86-21-6447-011786-21-6447-0117

URL:URL: http://www.npes.ebis.com.cnhttp://www.npes.ebis.com.cn

Technical office (NPES Shanghai Training Center)Technical office (NPES Shanghai Training Center)4F, 477 Aomen Rd., Shanghai 2000604F, 477 Aomen Rd., Shanghai 200060

Tel:Tel: 86-21-6298-3829, 6277-0580, 6299-412486-21-6298-3829, 6277-0580, 6299-4124

Fax:Fax: 86-21-6276-528386-21-6276-5283

URL:URL: http://www.meihu.com.cnhttp://www.meihu.com.cn

Thank you!Thank you!