LabelWriter Business Summary

1. LabelWriter BusinessSummary 12.17.07

2. Quick Facts • PC/Mac connected label printers and consumables. • $99MM in 2007 net revenues, +14.6% vs. 2006. 57% Gross Margin. • Application specific uses – addressing, filing, postage printing, visitor badges, and so on. • Print on die cut paper labels except DUO model that combines die cut (top) with labelmaker D1 tapes (bottom). LabelWriter 400, 400 Turbo, Twin Turbo and DUO$/€ 99 - $/€ 199

3. Key Consumer Targets: SOHO and Administrative Assistants SOHO Admin I run a small business and am constantly looking for tools to help my business get ahead. I purchased the LabelWriter so we could work more efficiently and look more like the big guys. I had seen the product in an ad, then a friend told me about so I had to find out more. I researched the printer and the price online before my purchase. I use it mostly for addressing and shipping but also for postage. I use it everyday and would definitely recommend it. I work in a large organization in an administrative support function. My main goal is making sure I am organized so that the people I support are organized. I’ve seen the LabelWriter in the catalogs and been interested but then my colleague told me about theirs and I just had to find out more. I checked it out online and asked my office supply sales rep before I ordered through the catalog.I use it all the time, mostly for filing and address labeling. It looks great and really makes me get things done so much faster. No more hassling with the sheet labels! I would definitely recommend this little printer. 3

4. Key Distribution Channels

5. Size of Market and DYMO Share • In the specific Label Printer category, DYMO market share is estimated at 74%. • Broadening the category to include sheet labels that print through standard printers reshuffles the deck as Avery and the other sheet labels together own 75% of the market. • Importantly, the sheet label market is declining.

6. DYMO vs. BROTHER • A “jewel” for your desk. • Friendly, simple, approachable products. • Best of class labeling software plus… • ….slick integration with popular software such as Word, Outlook, QuickBooks etc. • Broad distribution. • Lots of consumer marketing. • A “machine” on your desk. • Harder edge, not simple, not friendly. • Adequate labeling software plus… • ….adequate integration with popular software such as Word, Outlook. • Broad distribution. • Heavy discounting since launch. Often 30%-50% less than DYMO.

7. SWOT: DYMO LabelWriter Strengths • Global Product line/Sub Brand • End User Focused product/marketing • Highly profitable consumables • Good Innovation stream • Software Capability • Continuous large A&P Spend • Product Design • Volume leadership • Install base as advocates Weaknesses • Unified DYMO brand Marketing communication • Overall low awareness of category • Lack of presence in Latin America & Asia (except Australia) • B2B, direct marketing expertise • Limited resources on product side • CE&IT sales expertise in Sanford Sales Org • Product development cycle • Costs Opportunities • Continue to build brand and category awareness • Geographic expansion • Leverage Sanford strength in the channel (e.g. exclusivity) • Cross-promotions with other Sanford brands • New vertical market solutions • Innovation leadership Threats • Price pressure from competitor attention and aggressiveness • Convenience item • Displacement by competition (Brother) • Non Protected label supply • Third party label suppliers • Costs increases • Further erosion of core applications (mail, envelopes, filing) due to digitization of information 7

8. SWOT: Brother Strengths • Huge company with labeling focus • Global presence with a #1 or #2 share in most regions on core labeling products • Well known brand • Strong IT distribution relationships • Proprietary business with IP coverage • High profitability on consumables • R&D resources enable frequent product updates, broad portfolio of products • Deep promotional pockets Weaknesses • Product-driven marketing instead of consumer driven • Product Design • Price promotion “happy” • Labeling in Multi Function business unit – no focus right now • Commercial business relationships • Volume movement at key channels • Costs • Low A&P investment Opportunities • Invest in building brand, consumer preference • Gain market share in Europe, US vs. DYMO – exploiting DYMO A&P spend. • Increasing cross promotions and other marketing/sales links with the Brother Printer Division. • Development and launch of more end user driven solutions (applications, printers and tapes) Threats • Cost increase • Promotional strategy eroding brand equity across other lines • DYMO fully leveraging Sanford organization, relationships • Emerging strength of, and consumer preference for, DYMO branded products. • Further exclusivity programs by DYMO 8

9. Market Dynamics Positive Developments: • DYMO’s LabelWriter business has been growing 15% annually for several years, doubling from $50MM to $99MM in five years. • In many measures, we’re still tapping into an under-penetrated market. Concerns: • In 2007, sales in all small business focused sales channels in the USA were flat to slightly down (IT, office superstore retail, CE.) Fortunately, sales through the commercial channel were up strongly. Key question is whether the weakness we see in small business channels in 2007 may deepen in 2008 and even spread to Europe. • While we can still point to serving an under-penetrated market, due to lack of knowledge about the LabelWriter, the most popular LabelWriter application is addressing envelopes and we know that the use of first class mail volume is falling. We are diversifying the applications for LabelWriter with DYMO Stamps, DYMO File etc but key fact remains that addressing envelopes is on the decline. • While we have been growing rapidly as we march from one new country to another in Europe, at some point we’re going to run into a stumbling block, whether economic, campaign success and so forth.

10. Product Portfolio - Printers USA Key Notes • As the street prices for LabelWriter printers are the same in $s and Euros, EU consumers are really paying 40% more for their printers. • EU average 8% program expense is lower than USA 15% average where big customers dominate. • The standard costs for EU LabelWriter printers shown in EU chart looks way high, resulting in a 42% overall GM. The real GM is certainly higher. See next page for more accurate numbers as of 02.25.08 Europe

11. Product Portfolio – Printers (with corrected Europe costs and margins on .02.25.08) USA Key Notes • As the street prices for LabelWriter printers are the same in $s and Euros, EU consumers are really paying 40% more for their printers. • EU average 8% program expense is lower than USA 15% average where big customers dominate. Europe

12. Product Portfolio - Consumables Key Notes Labels • No data for Europe available at time this report was issued but the gross margin is in the same low 70% range.

13. Productivity Initiatives

14. 2008 Global Projections

15. Global Business Strategy & Actions Strategy Key Actions 15

16. North America Outlook 2008 • Increase ad campaign effectiveness. • Continued focus on commercial channel support. • Strengthen postage message at Office Superstores by adding Twin Turbo. • Promote the ability to print labels and postage more aggressively. 2008 Revenue Walk Keys to Success Risks • Small business slowdown worsens. • Corporate sector sales slow. • Weak retail store execution isn’t reversed.

17. 2008 USA MarCom View • Goal: • Drive awareness through full year of activities on TV, online and in store mediums • Focus on Small Office (<5) sector to support in store and IT/CE business • Halo effect to administrative assistant market

18. EUROPE Outlook 2008 Keys to Success 2008 Revenue Walk • Q1 campaign success in Spain, Benelux, Italy and Germany. Risks • Campaigns under perform. • Brother’s steep discounts gain traction. • Economic slowdown crimps spending. 18

19. 2008 EU Media Activity TV TV TV TV TV TV TV TV

20. 3 Year Product Road Map 2008 2009 2010 1H: DLS8 Localizations • EU first since, then Japan. Color Label Printer • R&D not currently funded. 2H: LabelWriter 500 • All new cartridge based product line. • Next step in ease of use. New Software Applications: • DYMO Visitor • DYMO Shipping Hardware: Q2: LabelWriter 4XL Handles 4” wide labels. Shipping applications and vertical markets. Q2: Print Server Enables sharing of printer among several users. Q3: LabelWriter 450 Series Improved print speed and resolution. Software: DYMO Stamps update for rate change. DLS update for MS Office. DLS update for LW450 DLS v8 – a major rewrite/upgrade 20

21. (B)Project Everest: LW4XL Overview What? DYMO LabelWriter 4” printer Why? Opportunity exists to introduce stand-alone label printer as well as an integrated shipping solution for small business Features / Performance Specs: • 4” print capacity • USB • Windows and Mac Compatible • 15 4” Shipping Labels/minute* Application / Benefits: • Perfect for use in the shipping area • Perfect for use in security, inventory and othervertical markets • No ink or toner needed • Process shipments quickly and efficiently Competition: Brother Zebra/Eltron Laser/inkjet printers Source of Supply: Honor Tone IP Status: In process *Final spec. to be completed.

22. (AF)LW500 - Overview What? New Platform and updated design to Global LabelWriter Product Line Why? To continue to innovative the LabelWriter product line, adding increased value and end user benefit Features / Performance Specs: • Drop and Load Cassette System • New Industrial Design • Entry level labeling (40lpm) • Manual Cutter System Application / Benefits: • General office labeling • Auto loading makes exponential difference on interaction with consumables replacement • Faster. Easier makes printing labels a simpler chore, eliminating the hassles of labeling. Competition: Brother QL series Source of Supply: TBD IP Status: GNI-XX-XX-XX; Patent No. XXXXXXXX

23. (AF)LW500 Turbo - Overview What? New Platform and updated design to Global LabelWriter Product Line Why? To continue to innovative the LabelWriter product line, adding increased value and end user benefit Features / Performance Specs: • Drop and Load Cassette System • New Industrial Design • Faster and Quieter (60lpm) • Auto Cutter on high end models Application / Benefits: • General office labeling • Auto loading makes exponential difference on interaction with consumables replacement • Faster. Easier makes printing labels a simpler chore, eliminating the hassles of labeling. Competition: Brother QL series Source of Supply: TBD IP Status: GNI-XX-XX-XX; Patent No. XXXXXXXX

24. (AF)LW 500 Twin - Overview What? New Platform and updated design to Global LabelWriter Product Line Why? To continue to innovative the LabelWriter product line, adding increased value and end user benefit Features / Performance Specs: • Drop and Load Cassette System • Twin System Offers double the productivity • New Industrial Design • Faster and Quieter (60lpm) • Auto Cutter on high end models Application / Benefits: • General office labeling • Auto loading makes exponential difference on interaction with consumables replacement • Faster. Easier makes printing labels a simpler chore, eliminating the hassles of labeling. Competition: Brother QL series Source of Supply: TBD IP Status: GNI-XX-XX-XX; Patent No. XXXXXXXX

25. (AF)LW 500 Duo - Overview What? New Platform and updated design to Global LabelWriter Product Line Why? To continue to innovative the LabelWriter product line, adding increased value and end user benefit Features / Performance Specs: • Drop and Load Cassette System • New Industrial Design • Faster and Quieter (60lpm) • Auto Cutter on high end models Application / Benefits: • General office labeling • Auto loading makes exponential difference on interaction with consumables replacement • Faster. Easier makes printing labels a simpler chore, eliminating the hassles of labeling. Competition: Brother QL series Source of Supply: TBD IP Status: GNI-XX-XX-XX; Patent No. XXXXXXXX

26. Broadening the Application Base for LabelWriter 26

27. With core applications such as addressing and filing on the decline, we have sought new office applications for LabelWriter that could be branded DYMO. • We have targeted four specific apps: • Printing postage (launched) • Digital filing (launched) • Temporary visitor badges • Printing shipping labels 27

28. DYMO Stamps (launched April 2006) • Exciting new application for LabelWriter as everybody needs stamps. • First internet postage system where users don’t pay a monthly fee. • NWL makes its profit from sale of label printer and sales of postage labels. • 20 months after launch, 16,000 users print a total of approx 1 million stamps monthly. That means about 10% of Stamps compatible printers are actually printing postage. • Postage label sales in 2007 have brought the Tech GBU $1.3 million in revenue at 90% margin. • You can print postage from a standard LabelWriter Turbo. Even better is a Twin Turbo that holds address labels and stamps at the same time. 50% of users have selected the Twin Turbo. • DYMO Mailing Solution Kit includes 5 pound USB scale. Currently selling at Sam’s Club at 80 units/monthly. Plan to broaden distribution in 2008.

29. DYMO Stamps Next Steps 4” Wide Printer for Shipping Labels DYMO Stamps Printer DYMO Stamps Sheet Labels • On its own, will be used in vertical markets where people need wider labels. • Combined with a multi-carrier shipping service, could be sold through SOHO distribution channels. • Print postage stamps on any laser or inkjet printer. • Could be sold in the Avery label aisle in office superstores. • Consumer research taking place now. • Mini stamp printer. • Unlike LabelWriter, this printer would only print stamps, not stamps plus standard labels. • Priced in the $59-$69 range. • Consumer research taking place now.

30. DYMO File (launching Q4 2007) To organize his paperwork, we give him two choices. For paperwork that needs to be filed digitally….new DYMO File Software makes it easy to... 30

31. DYMO Visitor (future) • DYMO LabelWriter is a popular choice to print visitor badges in the lobbies of many office buildings. • Over the years, DYMO has partnered with several small software companies that specialize in visitor management software. Companies such as STOPware (a Brady company), Infrasafe and others resell our LabelWriter printers with their software. • DYMO even developed its own visitor management software called GuestGuard that was quietly launched in Belgium in 2005 and has a couple dozen customers. • There may be an opportunity for DYMO to offer a packaged bundle (label printer, software, service) that makes it easy for small businesses to replace the front desk logbook. We would need to be very careful to not enter the visitor management market as that requires a single minded focus with a long sale cycle. Our solution would be a simple, log book replacement. • Key decision is whether we would develop and maintain the software/service ourselves or partner with STOPware, Infrasafe or another specialist as we did with Endicia to launch DYMO Stamps. And whether our distribution channels would embrace the product.

32. DYMO Shipping Solution (future - speculative) • Concept is to offer small business a printer, software, internet service based system for managing their Package Shipping. • Can’t be USPS only as Pitney Bowes has tried that and failed. • Needs to be multi-carrier. • Endicia is looking into the opportunities here. • Endicia would be product management arm, while DYMO would bring the solution to market. • Key challenge is that small businesses already have many options for shipping – unsure yet whether we can bring added value.

33. Internal Challenges 33

34. Japan Update • Japan is a large labeling market, with 3 strong competitors - King Jim (dominating the office market), Brother (office/home) and Casio (home focus). Due to the strong IP position held by competitors in Japan, and the fact that Esselte never had a presence in Japan, the only business DYMO has in Japan is a tiny embossing business. • Newell Japan has expressed an interest in selling LabelWriter printers in Japan because they will not run afoul of competitor’s IP and because Brother is already selling their QL series in the market. Importantly, the GBU has received no market data on Japan • Selling LabelWriter in Japan requires a Japanese version of the DYMO Label Software, which is tied to a major rewrite called DLS v8. DLS 8 is being written in Unicode to facilitate translations beyond Latin languages. • As recently as September, DYMO indicated to Ian Coleman that DLS8 in Japanese would be available in Q4 2008. This was a mistake as DLS8 development has not yet begun and we currently expect just the English version to be complete by year end 2008. • In November, DYMO informed APAC that a Japanese version of DLS will be ready in the second half of 2009, and will follow DLS 8’s release in North America and Europe where we have a big business to protect. • Just as important is that NWL APAC performs a careful market analysis to see whether there is a market need for the LabelWriter in the local market in its current form, or a modified form, along with a marketing/sales plan detailing exactly how the product would be positioned, distributed and marketed. Without that, it is impossible to judge the ROI of such a development project.

35. Business Reporting (Global) Sales reporting is incomplete. We have lost visibility into customer POS in USA. No resource to turn to in the USA for ad-hoc sales/market analysis. 35

36. Channel Management (USA): While the NWL office sales organization is terrific in office and mass channels, due to the specialization of the channel, and its importance to the Tech GBU, we believe the Tech GBU should manage the IT and CE sales channels directly. • There is precedence for this as this is the way DYMO managed its business under Esselte. 36

37. Innovation/Product Management The LabelWriter business should have dedicated resources in the following functional areas – Channel Support, Business Development, Marcom, and Innovation/Product Management. The one glaring hole in the organization is innovation/product management. • Over the next several years, the new printers, updates to core software and the pursuit of new applications all require the focus of an Innovation and Product Management team. • The cartridge based LabelWriter 500 is a complete change to all parts of the product – printers, software and consumables. • Development of a color printer would also be a major project. A second area of concern is in Europe where Tom DeFruytier handles the whole business by himself. He doesn’t have time to support the country clusters with anything beyond the normal business, meaning no time to pursue vertical markets and other special opportunities. A third area of concern is business development as we will need to add to the team in order to develop and launch new applications such as DYMO Visitor. Please see the next slide for a detail of the current business org chart with yellow highlighting our needs. 37

38. LabelWriter Business Organization