In the midst of the "credit crunch" PC sales continue to grow Market report from GfK

2. In the midst of the "credit crunch" PC sales continue to grow Market report from GfK • Sales increasing by 36% compared to June 2007 • Deskbound PCs are showing a small 2% increase • System house channels are 17%+ units & 23%+ value (YoY) • High growth in Mobile PCs: system house channels up 26%, retail channels rise a massive 76% (YoY).

3. Agenda for today • Welcome & Update • fixITlocal proposition • Service Module • Working with Micro-P • Extended Warranty - FIL branded VAS • Disaster Recovery - FIL branded Break • BT - why you guys count • BT Net – A big opportunity • Conclusion - how we can all make money • Q&A Lunch

4. fixITlocal Vision • Launched November 2007 • Aim to put independents on the map and drive customers • Research continues to show people wish to buy locally • Become largest professional outsource service organisation • With PCA accreditation provide customers with confidence • CORGI of the IT industry • How are we doing?

5. fixITlocal UpdateA unique program driving end-users directly to their local reseller • Proactive marketing activity: ads, eshots, leaflets... • Call locator program with a single national 0844 tel no. • Website reseller locator via postcode • New Developments • Contract service work referring jobs to fixITlocal • Branded products bring added service opportunities • Hardware & connectivity deals via strategic partnerships • Strategic partnership with Synaxon AG...

7. fixITlocal website homepage

8. Feedback: What are our resellers saying • We all want more calls! • most resellers have received referrals • Results vary, a lot depending on location • Most agree it’s a positive scheme • committed to make it a successful program • compete with mass retailers while retaining independence • Many working with us to develop new ideas & products • A year’s investment repaid with just a few calls Let’s have a look at some direct quotes...

9. Reseller Feedback 1 From: Ray Lewis [mailto:ray.lewis@hookstone.co.uk] Sent: 13 August 2008 21:45To: Victoria MoxhamSubject: RE: FixITlocal Lead Hi Just to let you know that I have installed a small Microsoft network, 2 days work, but I have been back twice since doing other work for the customer, I am also supporting the customer on an add hoc basis, so thanks for the lead. The customer said that he has been looking for a local cost effective service like this for a long time. Regards, Ray

10. Reseller Feedback 2 From: Albert Ryan from MPICS Digital Sent: 28 August 2008 To: Victoria MoxhamSubject: RE: FixITlocal Feedback We receive 4 to 6 calls a day so we are very happy with the FixIT service! Regards, Albert

11. Reseller Feedback 3 From: Andrew Stallard Sent: 01 July 2008 17:58 To: Paul Gibson Subject: RE: Andrew Stallard - fixITlocal Hi Paul Thanks for that, Tesco's, PC Guys, etc better watch out cause FixITLocal is going to Fix Them Good! Regards Andrew KTAK Limited Westcliff Business Centre 188 West Road Westcliff-on-Sea

12. New Service ModuleA major development for fixITlocal • Online service referral portal • Allows vendors to outsource warranty, repairs, installs etc. to the fixITlocal reseller network • Automatically refers job to the nearest specialist • See the payment rate upfront • Allows contractor to track progress • We are now actively bidding for new contract work • Current vendors include: Cerco, The Senior Alliance, Burnetts Insurance, Northamber • Creating another window of opportunity

13. fixITlocal – Service Contracts • Cerco • Strategic partnership offering engineering referral work and training benefits. • Burnetts Assoc • Warranty Repairs • Northamber • HCI scheme warranty repairs • Senior Alliance • PC & Laptop installation service

14. fixITlocal – Service Module • Let’s take a look…

15. fixITlocal ServiceModule Accepting/Rejecting a call • The call appears on the first screen once logged in • From this screen you can ‘Accept’ or ‘Reject’ the call

16. fixITlocal ServiceModule Accepted calls • This screen shows your ‘accepted’ jobs until ‘completed’ • Full details of the job are shown on the job sheet (PDF) • Print off and take with you on the job

17. fixITlocal ServiceModule Job sheet • The Job Sheet contains all the details you need • Contact the customer to arrange a convenient date/time to visit • Print job sheet and take it with you on the job • Once completed the customer will need to sign the Job Sheet • No payment will be made unless this is actioned

18. fixITlocal ServiceModule Update • You will need to complete the details on this screen • You can scan and ‘upload’ the job sheet, so the vendor will automatically receive this • Or you can post the job sheet to FIL admin who will send to the vendor (please keep original for own records) • Then click ‘Job Completed’

19. fixITlocal ServiceModule Job completed • The job will then appear in the ‘Completed Calls’ tab and the status will change to ‘Completed’

20. fixITlocal ServiceModule Job Closed • Once the Vendor receives the Job Sheet & confirms the job is completed, the status will then change to ‘closed’ and will appear under the ‘closed calls’ tab.

21. fixITlocal ServiceModule Receiving payment • You will receive payment for ‘closed calls’ only • At the end of each month a PDF statement will appear in your account under ‘Admin’ • Once this appears, you can print & send to us to receive payment • You will receive payment within 10-14 of us receiving the invoice fixITlocal will receive 10% referral commission on all work referred – your screen shows the net amount you WILL receive

23. fixITlocal & Micro-P • We have agreed a Strategic Partnership with MICRO-P • Why MICRO-P? • Specialise on working with the smaller indie reseller • Believe in talking with their customers • Wide range of products • Buying power & focus to lever special deals • Offering a range of promotions: • Group rebate scheme • Vendor marketing funds channelled to end-user advertising • 16 week program of exclusive hardware deals

24. fixITlocal & Micro-P16 week program of exclusive hardware deals • Sept 15thPrinter - Xerox 1620N - £69 • Sept 22ndExternal HDD • Sept 29thLaptop / Accessory • Oct 6thDisplay • Oct 13thRouter • Oct 20thTV • Oct 27thSoftware (Anti-Virus) • Nov 3rdPrinter • Nov 10thExternalHDD • Nov 17thTV • Nov 24thB-Tube • Dec 1stLaptop/Accessory • Dec 8thDisplay • Dec 15thPhotoframe • Jan 5thHomeSolution[Laptop, Printer, Router, HDD, K/B, Mouse, Display, Software]  • Jan 12thRepeatabove

26. fixITlocal – Extended Warrantyprogram

27. fixITlocal – Extended Warranty • Branded PC & Laptop warranty: • Add extra margin to the initial sale • Maintain lifetime contact with customer, upgrade at expiry • Choose to be the repair agent for the policy and gain further income on repairs • Allow users to buy from you with confidence, offers credibility v high street retailer • The customer is insured, so no matter what happens to their reseller product is covered

28. fixITlocal – Extended Warranty • Policy is provided by Burnetts Assoc, UK’s leading supplier of computer warranties • In addition to receiving your own repair calls Burnetts will place their other warranty repair work through fixITlocal • It makes sense to sell policies whereby you gain: • Additional profit at point of sale & on previous 11 months sales • Payment to do the repair work on your sales • the possibility of new repair work and new customers • A full sales pack, inc the policy & POS leaflet, is included within your welcome pack

29. Introducing • Paul Jackson • Director of First Recovery

30. about us • emergency disaster recovery for SMEs • established 5 years • 7,000 customers / 10,000 locations - 4 times more than any other DR company • award-winning: • BT Entrepreneur Awards ‘06 • Insurance Times Awards ‘05 & ‘06 • endorsed by major insurers

31. the problem • Big business has always had DR • SMEs need DR: • compliance (e.g. tenders) • regulation • peace of mind • SMEs can’t buy DR: • expensive • time-consuming • bespoke

32. what we do • alternative offices • IT network • email • internet • phones • expertise • speed

33. how we do it • 500 sites around UK – 9.6m sq2 • online, real-time database • client occupies premises for one month • standby IT systems held in bonded stock • software loaded • tested & pre-networked • includes printer • technician arrives • internet reconnected • email reinstated • phones redirected • data restored • …client has platform for ongoing business

34. benefits • to your client: • solves a complex problem, with no admin • ultra-low-cost DR • respond to tenders with confidence • reduce insurance premiums • to you: • innovative, unique product • strengthens ties to your client • opportunity to sell added services • Data back up, reinstallation services and new equipment • 160,000 eshot delivered end September 08

35. the business • 6 x DR seats: £425+VAT p.a. • 12 x DR seats: £795+VAT p.a. • Mark up to resellers: 30% every year • admin is straightforward: • contracts start 1st of each month • collect payment & forward to DMSL • contract confirmation sent to client

36. conclusion • ultra-low-cost DR for SMEs • credible & tested • endorsed by major global companies • available on the open market via FixITLocal resellers • …a unique opportunity to solve clients problems

37. Let’s take a break

39. Ricky Ricketts General Manager Indirect Partner Sales - BT

40. Communications & Infrastructure £7.2bn Applications & Content Hardware & IT Services £2.4bn £10.7bn

41. The Case for Action Communications & Infrastructure What? • We help UK SMEs succeed • Consistent double-digit growth • Be the No.1 player in the £20bn Comms & IT market How? By: • Putting the customer at the heart of everything we do – helping them do what they do best • Becoming Number One for Customer Service • Driving Unified Communication, Collaboration and Commerce Solutions • Success through our People and Partnerships Applications & Content Hardware & IT Services

42. The Case for Action Communications & Infrastructure Why? • No-one’s better placed than us to seize this opportunity: • Our brand is well placed for this business market • Our channels to market are strong • We have the capabilities to deliver If we don’t? • Our competitors will have a stronger appeal in a market that craves for integrated solutions • We will get to be caretakers in slow-grow / no-grow land Applications & Content Hardware & IT Services

43. Why have a channel? Communications & Infrastructure • Reach • Capability • Vertical expertise • Customer choice Applications & Content Hardware & IT Services

44. “Cracking the IT Services Nut” Forrester Report, Dec 2007

45. “Cracking the IT Services Nut” Forrester Report, Dec 2007

46. Portfolio Focus • IT Manager • Hardware • IT services • Broadband • Bundled options • VAS • One Plan • Calls & Lines • Broadband • Mobile • Conferencing Financing IT services/support Applications/SaaS Networks Switches Broadband Calls Lines

47. BT Net • Customer Scenario • BT Net Product attributes • Competing Technologies • Summary

48. Scenario • Design & Print Company • 20 Office Based People • ADSL Since 2003 • 5 Remote Sales People • Mail Server • Web Site.

49. Potential Issues? • Bottlenecks? • Service Level • Speed • Unpredictability • Grown out of ADSL?... • Design & Print Company • 20 Office Based People • ADSL Since 2003 • 5 Remote Sales People • Mail Server • Web Site

50. BT Net Product Overview“Leased Line Internet Access for Business” • Symmetric • 1:1 Contention • Flexibility • Availability & Reach • Service & SLA • Resilient Options.