SCAN BASED TRADING

WHERE DO WE GO FROM HERE?

THURSDAY, NOVEMBER 5, 2009

2

WHERE DO WE GO FROM HERE WITH SBT?

FALL 2009 NEACE CONFERENCE

1. BRIEF REVIEW OF THE SPRING DISCUSSION

2. WHAT HAS HAPPENED SINCE SPRING?

3. NEXT STEPS? WHERE DO WE GO FROM HERE?

4. METRICS DISCUSSION

3

WHERE DO WE GO FROM HERE WITH SBT?

REVIEW FROM THE SPRING CONFERENCE:

DISTRIBUTION AND BILLING MODELS :

PRE SBT

POST SBT

PRE SBT:

GOT PAID FOR ALL OF OUR COPIES

MINIMAL OR NO BALANCES!!!

INVOICES EASY TO RECONCILE

4

WHERE DO WE GO FROM HERE WITH SBT?

REVIEW FROM THE SPRING CONFERENCE:

POST SBT:

“THE PLAYING FIELD SHIFTED!”

“SBT IS HERE TO STAY!!!”

ONE PARTY = MORE COMPLEXITY

PUBLISHERS-WHOLESALERS ABSORB SHRINK

SHRINK CAN BE DOLLARS OR COPIES!!!

5

WHERE DO WE GO FROM HERE WITH SBT?

WHAT HAS HAPPENED SINCE THE SPRING:

ESTABLISHED A NEACE SBT SUBCOMITTEE:

MEETING IN JUNE 2009

PARTICIPANTS:

USA Today, The Portland Press Herald,

The Manchester Union Leader,

The Nashua Telegraph, The Concord Monitor,

The Portsmouth Herald and The Boston Globe

NEXT MEETING TO BE HELD IN JANUARY, 2009

NEACE PRESENCE AT ICONTROL OFFSITE JUNE, 2009

6

WHERE DO WE GO FROM HERE WITH SBT?

WHAT HAS HAPPENED SINCE THE SPRING:

COMMUNICATION CONDUIT & SHARER VIA “SPARK LIST”

i.e.: Pending Shaw’s conversion

Meeting and Conference Minutes

ESTABLISHED A WHOLESALER-PUBLISHER

NEW ENGLAND CONSORTIUM:

PARTICIPANTS:

USA Today, Leominster News,

The Boston Herald, Kopplemen News, and

The Boston Globe

ANY MORE INTERESTED PARTIES?

MEETING IN DECEMBER, 2009

7

WHERE DO WE GO FROM HERE WITH SBT?

NEXT STEPS: “AGAIN, SBT IS HERE TO STAY!!!”

PUBLISHER & WHOLESALER OBJECTIVES:

ESTABLISH A “TRIANGLE OF TRUST!”

ESTABLISH A “CLARITY OF ACCOUNTABILITY!”

BALANCE “THE PLAYING FIELD”!

CHANGE AND RE-SHAPE THE CURRENT MODEL!

HOW DO WE GET THERE? THROUGH DIALOG!!!

RELATIONSHIP IS STILL WITH THE RETAILERS

NEED TO LISTEN TO RETAILERS NEEDS

INVITE SOME TO THE SPRING CONFERENCE

STRENGTH & SOLIDARITY THROUGH COLLABORATION

SENSITIVE TO LEGAL RAMIFICATIONS

8

WHERE DO WE GO FROM HERE WITH SBT?

MORE OF THE MEANS ON HOW TO GET THERE:

SHARE SHRINK BASED ON METRICS

RECONCILABLE INVOICES THROUGH SYSTEMS TALKING

DATA EXCHANGE FOR SALES INFORMATION, ORDER REGULATION, ETC

SNYC EASY FROM ICONTROL

9

WHERE DO WE GO FROM HERE WITH SBT?

WHAT DO WE GET IN RETURN?

RETAILERS LISTEN TO OUR NEEDS

SBT COS. LISTEN TO OUR NEEDS

THE SHORT TERM GOAL: 3- WAY LEVEL “PLAYING FIELD”!!

POSSIBLE OUTCOMES:

MODEL IS RE-SHAPED AND BALANCED

AN EQUITABLE MODEL FOR ALL THREE PARTIES

PRICING MODIFICATIONS?

10

WHERE DO WE GO FROM HERE WITH SBT?

METRICS: WHAT STORY DO THEY TELL?