GDSN Business Update Data Pool Business Meeting

1. GDSN Business UpdateData Pool Business Meeting 6 December 2005Sally A. Herbert, President, GDSN, Inc.

2. Agenda • Importance of GDSN-Certified Data Pools • GDSN Organization and Governance • Board and Sub-Committees • Data Pool Advisory Council • GDSN Activity • 2006 Business Model Update

3. Importance of GDSN Certified Data Pools

4. Role of Data Pools • Data Pools are “agents” of the Global Registry • Provide the customer support (business and technical) infrastructure • On-boarding services • Education materials and training services • Standards interpretation AND requirements gathering • Help Desk • Offer additional value added services • Data quality, EDI to XML conversion, representation to GSMP standards process, supply chain expertise • Provide regional/global and/or sector experience (market knowledge, reputation in the region, etc.) • Enable sales and marketing support deployed within the region and globally • As a GDSN Certified Data Pool: • Single point of entry to the GDSN/GR • Interoperability with other GDSN Data Pools • Standards compliance (message choreography) • Standards compliance (full attribute support versus a subset of attributes)

5. GDSN Organization and Governance

6. GS1 Brand Architecture

7. GS1 GDSN and GS1 Global Office

8. GDSN Governance GDSN Board of Directors GDSN Board Sub-Committees GS1 GDSN Inc. (GS1 Business Unit) GDSN User Group and GSMP BRG Governance Policies and Strategic Direction User Business Requirements for GSMP Standards and Implementation Business Unit Management for Registry, Certification and GPC

9. GDSN Board of Directors

10. GDSN 2005-2006 Objectives • GDSN Adoption • Determine optimal pricing model to encourage adoption • GDSN to work with retailers to launch calls to action beyond USA • Communication • Simplify GDSN message and increase communications • Provide implementation support for GS1 Member Organizations (MOs) and Data Pools • Be a User-Driven Organization • Gather and prioritize requirements from GDSN User Group • Involve MOs as active participants • Standards development–quality, speed & focus • Joint responsibility of GDSN and GSMP • Ensure more global user participation • Plan for the Future Evolution and Growth of GDSN • Flexibility to support regional and global business needs • Certification requirements include security and performance test criteria

11. Data Pool Advisory Council

12. Proposed Data Pool Advisory Council Structure • New Data Pool funded pricing model necessitates DPs have a more formal voice in GDSN governance • Recommend Board consideration and discussion of the following: • DP Advisory Council becomes a GDSN Sub-Committee with voting rights (vs. an Advisory Council) • DP Sub-Committee chartered to focus on identifying and addressing GDSN strategic matters as they impact the global data pool community • Technical operational matters would be addressed via the User Groups, Architecture Committee or ad hoc groups • All Certified DPs eligible to participate in the DP Sub-Committee • DP Sub-Committee would be Co-Chaired • 1 GDSN Board User Representative (e.g. Dave Hutchings) • 1 elected DP senior executive elected from Data Pool Sub-Committee members • 1-year term of service on GDSN Board for the DP representative • Challenge: selecting DP Committee Chair from a group of very qualified individuals • GS1 MOs ineligible since they have Board representation currently 

13. GDSN and Global Registry Activity Update

14. 2005 Major Accomplishments • Formed GDSN Board of Directors • Established and staffed GDSN, Inc. as business unit of GS1 • Formed GDSN User Group under GDSN, Inc. • Gather user business requirements and link with GSMP for standards development • Regional User Groups being formed (Asia, Europe) • Created a GDSN Development Roadmap for 2005 – 2006 • GDSN functionality to meet needs of global users • Executed the 2nd Data Pool Certification Program • 26 completed 2005 certification event • 14 GS1 Member Organizations (plus 5 additional MO markets) • Implemented Business Model Refinements • New 2006 business model; data pool funded model vs. subscription model • 50% discount extended through the adoption of a new pricing model (1Q 2006) • Launched Global Awareness & Education program • ECR Asia September 2005 • Australia in November 2005 • Latin America and Europe in Q1 2006

15. Current GDSN Statistics (18 Nov 05) Note 1: UCCnet and Transora are counted as 2 data pools. Note 2: GDSN Statistics Report is available on www.gs1.org web site under GDSN area. Includes full list of all GR subscribers.

16. GDSN Data Pool Funded Pricing Model

17. Background • 2006 is a transition year for GDSN… a critical year • Users need to make an effort to guarantee that we implement a single, global standard of data synchronization • Major global and regional DPs, and service providers hosting key global companies, have a vested interest and are called upon to make special effort in the early years • GS1 US (1SYNC), Agentrics (WWRE/GNX), GXS, and SINFOS • Several models were considered for an alternative to the subscription model • DP Funded Pricing Model is optimal • DPs support the model • Considered regional factors (e.g. high concentration of US data pools): • US DPs – not all DPs are the same (e.g. size, maturity, # of trading partners) • Considered usage as a variable (GTINs, and Items) • Minimum fee plus usage (tiers of number of items) - how to check • Considered minimum fee

18. Data Pool Funded Model - Principles • New DP Funded model in place for 2006 • Financial model will be revisited in 2007 and beyond until GDSN is widely adopted • Used $3.8M base for the model • The base model is established based on country GDP (weighted average) • Minimum Fee - USD $10K to cover costs • No double fees: Either as Service/Solution Provider or as Data Pool • SINFOS, GXS, ParaRede and Soft Solutions • Any surplus from 2006, will be reimbursed to DPs based upon # of users each has subscribed to the GR (regardless of user size). Final model to be determined

19. Data Pool Concerns / Feedback • Reviewed pricing model with most GS1 MOs and all commercial data pools • Did not review with all of the service / solution providers • General acceptance and support of model overall • Fee structure looks equitable for GS1 MOs outside of US • US pricing structure is challenging; contains subjective aspects • Concerns about greater DP role in GDSN governance • If DPs are to fund GR, then need a stronger voice and seat on Board

20. Board Actions • Reaffirmed commitment to new Data Pool funded pricing model • Chartered GDSN, Inc. with sub-committees to: • Develop transition plan and publish pricing structure (Finance Committee) • Modify contracts/agreements (DP Advisory Council /Legal Counsel) • Develop communications plan (Communications Committee) • Prepare for final vote in January • Target effective date: 1 Mar 2006 • Voted for interim extension of current subscription based model (50% discount) through the implementation of new DP funded model

21. Contact details Sally A. Herbert President GS1 GDSN, Inc. D. +1571.238.9675 E. sherbert@gs1gdsn.org