FROM IMAGES TO ANSWERS ®

Americas 2006-2007

“It’s Still All About Market Share…”

2006 by the Numbers…

2006 Budget was $5.246MM

Region Software $(%) Hardware $(%) Total $(%Goal)

North America $3.025MM (86%) $0.429MM (12%) $3.513MM

Latin America $0.230MM (50%) $0.228MM (49%) $0.463MM

$3.255MM

Total Americas

$3.255MM (82%) $0.657MM (16%) $3.976MM (76%)

2006 Revenue by Month

America’s 2006 Revenue by Month

Americas2006 Revenue by Month

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

1 2 3 4 5 6 7 8 9 10 11 12 13

Month

Re

ve

nu

e (

$)

North America Revenue

Latin America

Linear (North America Revenue)

Linear (Latin America)

2006 Revenue versus Prior Years

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

1998 1999 2000 2001 2002 2003 2004 2005 2006

Region North America

Region Latin America

Linear (Region NorthAmerica)

Linear (Region LatinAmerica)

2006 Revenue by Channel

America’s Market Share 2006

Year-over-Year Revenue by Channel

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Leica $787,821 $805,349 $767,088

Nikon $646,077 $1,046,613 $552,432

Olympus US $638,036 $533,128 $492,640

Olympus Canada $608,491 $536,690 $393,324

Olympus Latin America $193,570 $322,884 $363,079

Zeiss $242,714 $243,267 $99,248

Independent $900,804 $813,693 $723,774

Media Direct $95,139 $79,680 $330,189

2004 2005 2006

Year-over-Year Revenue by Channel

2004

2005

2006

Leica Total Nikon Total Olympus AmericasTotal

Zeiss Total Independent Total Media Total

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

2004-2006 Revenue by Channel

2006 Revenue by Territory

2006 Revenue by Territory

NorthEast, $769,638

SouthEast, $298,734

MidWest, $952,299

West, $614,511

NorthEast

SouthEast

MidWest

West

Excluding Canada, Latin America & Media Direct

Year-over-Year Revenue by Territory

2004

2005

2006

NorthEastSouthEast

MidWestWest

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2004-2006 Revenue by Territory

Excluding Canada, Latin America & Media Direct

2006 Media Revenue by Top 5 Performers

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2004 2005 2006

Olympus Canada

Media Direct

Nuhsbaum

Phase 3

Leeds

2006 Media/QImaging Revenue by Top 10 Performers

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Top 10 Media Dealers

Q Sales Media Sales

Canada

Media Fryer Phase 3

Nuhsbaum LeedsJ H

Meyer

Kramer

BioImaging

2006 QImaging/Media Revenue by Top 10 Performers

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Top 10 Qimaging Dealers

Q Sales Media Sales

NuhsbaumCanada

J H Olympus

Biovision

Leeds

Media

NCI Fryer Leica

What’s Happening?

Increased Competition requires Leveraging of Strengths

Marketing

Technology

Sales

Microscope Companies Leading with own Cameras and Software

Microscope Companies Developing better software

What Can We Do?

Hybridize (Help People Who Help Us)

Marketing

Technology

Sales

Become More Valuable to Customers

Triage and Prioritize

What Can We Do? The Marketing

•Build Products Customers Want

•Industrial Applications like Materials & Metrology

•Niche Markets like Otoliths & C. Elegans

•Build Better Products

•Plug & Play, Walk Away

•‘Nough Said

•Execute Ongoing Top-Down & Bottom-Up Strategy

•Olympus

•Leica

•But Don’t Ignore Nikon & Zeiss

•Why? Because There is no Plan B

What Can We Do? Technology

•We Own the Technology Space in our Segment•PM + Q ~50% Market Share

•Media ~ 10%-25% Market Share based on US region

•As Market Leaders, We Should Define the Standards•Make it Easy to do Business with Us

•Set the Bar Higher as a Barrier to Entry

•Give Customers What They Don’t Know They Need!

•Get Closer to the Customer•We don’t know 85% of our Customers

•Take Chances

What Can We Do? Sales

•Leverage Our Strengths

•Share Our Successes & Failures

•Tribal Knowledge

•Lexicon

•Present a United Front

• “One Roper”

2007 Initiatives

•Leverage our Brands

•Regional Reference Labs

•Cross-sell Customers

•Camera/Software Bundles

•More Cooperative Selling (Obj Img.)

•Increase units sold per sales (Facility Licensing)

•Tighter Software/Hardware Integration

•For Selected Configurations*

*For Example, Use Turbo-Scan with AFA?

2007 Tactical Initiatives

•Sales Action Plan•Webinars•Seminars•More Face-to-Face Visits•Farm Existing Customers

•From Database•From Surveys

2007 Tactical Initiatives

•Aggressive Software Upgrade Promotion

Image-Pro

InVivo/InVitro

AutoQuant

Target OEMs

Genomics/Proteomics (AP/GP)

Industrial (AQI)

Life Science (IPP)

Competitive Feature Comparison

Image-Pro MC Most Comprehensive Package in the Industry; No Charge for Drivers

MetaMorph Extra Fee for Camera drivers, Hardware Drivers, 2D & 3D Blind Deconvolution & 3D

Simple PCI Extra Fee for Automated Image Capture, Image Processing and Analysis, Dynamic Intensity Analysis, Motion Tracking and Analysis

BD Bio Extra Fee for Ratio Plus, Fluorescence CV for Mac, MultiProbe for Win, Motion Control, Shutter & Filter Control

OpenLab Extra Fee for 3D Module, Morphology Module, Ratio Module, FRET Module, Colocalization Module, Registration Module

Intelligent Imaging

Extra Fee for Ratio, TTL, 3D, 4D Tracking, Multiwell Plate Module, Statistics Package

AxioVision Extra Fee for Z-Stack, Time Lapse, Tiling, Autofocus, Multichannel, Measurements, Imaging Plus

Competitive Feature Comparison

Smart Camera Control

Y N N N N N N

Zoom & Pan Images

Y N N N N N Y

Advanced Microscope Control

Y Y Y Y Y Y Y

Tiling, Mosaic, Slide and Well Scanning

Y Y Y Y Y Y Y

Multi-dimensional Acquisition

Y Y Y Y Y Y Y

Multi-Color Imaging

Y Y Y Y Y Y Y

Time Lapse Acquisition

Y Y Y Y Y Y Y

Color 3D with Piezo Focus

Y, $ Y N Y N N N

Competitive Feature Comparison

Advanced Morphometric Measurement, Analysis and Classification

Colocalization, Translocation FISH, and Fluorescence

Ratio Imaging

FRET Analysis

Cell Tracking

Vital Systems Control & Measurement

Signals and Systems Control

Data Analysis, Recording, and Reporting

3D rendering and measurements

3D Time Lapse Analysis

Analog Digital signals support

Trend chart analysis Intensity tracking

MC MM BD Bio

3I Compix AxioV

Y Y Y Y Y Y

Y Y Y Y Y Y

Y Y Y Y Y Y

Y Y Y Y Y Y

Y Y N Y Y Y

Y Y N Y N N

Y Y N Y N N

Y Y Y Y Y Y

Y N N Y N N

Y N N N N N

Y Y N Y Y N

Y Y Y Y Y N

With Similar Features, How to Choose?

•Zeiss

•Loyal Base due to Highly Integrated Systems and Direct Sales

•Few User Choices

•Molecular Devices (formerly UIC)

•Loyal (but Frustrated Base)

•Vulnerable due to Ongoing Changes in Personnel and Direction?

•Intelligent Imaging Innovations

•Favored by Olympus; a Longtime Zeiss Collaborator (Strange Bedfellows)

•Reported to Have “More Mouse Clicks are Better” Syndrome

•Compix (div. of Hamamatsu Photonics, Inc.)

•Released v. 4.0 with New Features and Improvements

•Considered the Low Price Leader for Basic Image Capture and Microscope Control

•Scanalytics (div. of BD BioSciences)

•Dealer Channel Remains Weak with Limited Representation

•Products Lag Behind Leaders; Typically Partners with Researchers for New Products

•Nikon

• LIS (Czech Republic) now Majority-Owned by Nikon

•Strong Push by Nikon to Convert Meta-Morph to Elements

Updated Software Competitive Assessment

Comparison Criteria:•It is Impossible to Make an “Apples to Apples” Comparison (I wish There was)

•This Comparison is Based on Image Pro Plus-MC versus Comparable Features in Other Packages

•The Data were Obtained from Publicly Available Sources and Presumed to be Accurate as of April 2006

..\My Documents\2006\Image Analysis Competitive Assessment 2006.xls

So What! What Do We Tell Customers?

If You Have the Need for Speed:•Choose InVivo for Fastest Acquisition when an External Device is Attached

•If You’re Prowling for Power:•Choose Image-Pro® Plus, the Most Powerful Analysis Package on the Planet

•If You Need Speed and Power:•Choose a InVivo/IPA Bundle Combining the Speed of InVivo with the Horsepower of Image-Pro

Sell “AMG Laboratory”• “MS Office” analogy InVivo-IPP-AQIX-IQB-PM-Q-DualView bundle as one solution.

www.mediacy.comSilver Spring, MD (Headquarters)

Worldwide Offices in:

Boston, Pittsburgh & San Diego

Leiden, The Netherlands

Goettingen, Germany

Wokingham, United Kingdom

Singapore, Republic of Singapore

Tokyo, Japan

Shanghai, China

“Elvis Has Left the Building…”