IBM Point-of-Sale Teleconference Series: July 20, 2004

1. IBM Point-of-Sale Teleconference Series:July 20, 2004 Tammy Priest

2. Agenda • Introduction and Marketing Update – Tammy Priest • Self Checkout Update • Customer reference update • Education date refresh • Kiosk Refresh – Melissa Fiutak • Printer Driver Update – Dave Stanhope • IRES Ordering Procedures – Mary Beth Morrison

3. Self Checkout Update • BPs now enabled to sell Self Checkout • In order to be able sell Self Checkout • Complete the 2 education deliverables previously described • Account Manager • Project Manager (must be completed within 60 days from completion of Account Manager course) • Once training is complete, BP is authorized to begin selling • No longer a $10,000 integration fee as previously discussed • Purchase of SCO unit is strongly recommended, but not required • For more information the announcement letter will be posted to the PartnerWorld web site – www.ibm.com/partnerworld > select “announcements”

4. Customer References • Get a FREE admission to the 2005 Retail Store Solutions Education Conference • Long Beach, CA, January 30 – February 2, 2005 • $900 USD Value • Be a featured Business Partner in our IBM newsletter to over 100 POSsales representatives • Submit a qualifying IBM point of sale (POS) product customer reference for one of your End Users • Complete an IBM Retail Store Solutions Win Report Form and IBM Retail Store Solutions Customer Reference Consent Form • Forms available from Cathy Wagner: cew@us.ibm.com

5. Education and Trainingwww.ibm.com/education/retail • RE4840C2 Operating System Preloads for the IBM SurePOS 500 (for customers) • RE4840P Operating System Preloads for the IBM SurePOS 500 (for IBMers and BPs) • RE4800P Operating System Preloads for the IBM SurePOS 700 (for IBMers and BPs) • RE4810P Operating System Preloads for the IBM SurePOS 300 (for IBMers and BPs) • Technical course on the Data Integration Facility (DIF) will be available in August • Store Integrator T3 video will be available in August

6. IBM Kiosk Model 153 July 2004

7. What’s new? • System unit • Technology refresh based on the new SurePOS 500 • Enclosure • Same look and feel • Slight modification to accommodate new system unit • One color - all iron grey • No change to the height • ½” deeper • 3” wider • Allows integration of an 8.5 x 11” thermal kiosk printer

8. IBM Kiosk Model 153 Objectives • Technology Currency • Improved Infrared Touch Technology • Faster Processor • Better Memory Technology • Dual Video Support • Investment Protection • Retail Hardened • Spill Resistant • Design enables improved cooling of faster processors • Flexible I/O choices • Standard I/O Interfaces • Ease of Migration • Open Platform • Application Compatibility • Driver Compatibility • Attractive Integrated Design • New look and feel • Enhanced Cable management • Increased product flexibility • Able to mount to wall, counter and enclosures • Priced Competitively

9. CPU Outlet Disk Drive CPU Air Flow Power Supply Outlet Power Supply Air Flow IBM Kiosk Model 153 Enhancements • 2.0GHz Intel Celeron processor • Upgrade to P4 2.4GHz available • Higher Cooling Requirements • Three heat sources • CPU • Disk Drive • Power Supply • Cooling Tunnel

10. IBM Kiosk Model 153 Enhancements • Infrared touch technology • Benefits of IR Touch • Excellent Image Quality • Higher contrast ratio • Least amount of glare • Extremely Reliable • Drift-free, factory-only calibration • Sealed against spills, dust • ManyChoices for Input Devices • Fingertip • Long Fingernails • Gloved Finger • Non-Conductive Stylus • Credit Card • No force required

11. IBM Kiosk Model 153 Enhancements • Dual video capability • Expanded I/O connectivity • Industry Standard Powered USB ports • 24V • 12V • Ergonomic Cable / Port Area • Updated enclosure • Single-color • House all existing optional peripherals • Accommodates 8.5 x 11” thermal kiosk printers

12. IBM Kiosk Model 153

13. IBM Kiosk Model 153 cont’d

14. IBM Kiosk Model 153 Hi Hello Hello Hello

15. EIP Scheduling • In-house (Raleigh lab) or remote port begins June 3rd • To get a copy of the EIP Checklist and to be scheduled for porting, please contact Belinda Whitaker-Gary • Phone: (919) 301-5251 • Email: bfw@us.ibm.com • Please send your completed checklist back to Belinda to secure the date that you request • Note: scheduling is on a first come, first serve basis

16. IBM Kiosk Customer Value Model (CVM) Powerful, stylish kiosk technology designed for fast, convenient self-service in any environment Core Technology Long life roadmap (5-7 years avail) CPU: 2.0GHz Intel Celeron (P4 via RPQ) Memory: Support up to 2GB Options for internal storage - HDD: Largest size to fit price point - Flash Drive: Largest size to support embedded applications Peripherals: MSR, Scanner, Speakers, UPS, Keyboard, Kiosk printers Warranty: 1 year on-site - Capability: Variable to 5 years Open Systems Support: Windows: 2K, XP, XPe Linux: SuSE Product Attributes Investment Protection Long life stable platformMaximum flexibility Retail optimized design: 1 PC card slot, multiple USB & RS232 ports, 2 memory slots Thin or Thick client support Flexible form factor and configuration accommodates multiple peripherals and off-the-shelf or custom enclosures Complement of Business Partner applications available Rugged Design Spill resistant, extra guardband design (temp, elevation, drop, electrical) Tamper-proof – only authorized personnel able to access control buttons and peripherals High availability – Integrated UPS option Latched connectors, Cable management Brand Attributes IBM Reliability & Quality - Retail Hardened for Mission Critical Investment Protection Innovative Solutions IBM Service & Support World Wide IBM Team total solutions - One stop shopping Long term stability - 30 years of IBM Retail experience

17. Native Windows Drivers for IBM SureMark Printers Dave Stanhope

18. Offering Description • A Native Windows driver for SureMark Printers • Provides drop-in replacement of Epson printers • Windows XP, 2000 • Supports both Single Station and Dual Station SureMarks • SBCS, English only – DBCS work effort to be evaluated • RS-232 & USB • Printer is accessible via Windows Applications (Word, Explorer) • Start menu accessible printer settings • No-charge driver, available on web • EIP program – • contact Belinda Whitaker-Gary (919) 301-5251 bfw@us.ibm.com • Starts August 25, 2004 • GA – Oct 04, 2004

19. Benefits • IBM has extended availability of SureMark Printers to retailers who prefer Applications that use Native Windows printer drivers • Enables retailers to benefit from the High reliability, operational efficiencies, and worldwide availability of SureMark printers • Enables retailers to install and maintain an integrated IBM solution, yielding many associated advantages • IBM is enabling BPs and Distributors to satisfy their customers’ preference for a full IBM solution • IBM is enabling T & T, Banking, and other sectors who require Native Win printer drivers, to benefit from the SureMark Printers’ reliability and low cost

20. EIP Highlights • Who can participate ? • Worldwide Customers and IBM Channel partners who have POS solutions requiring receipt printers supported by Native Windows drivers. • Where will the testing be done ? • Tests will be conducted by EIP participants at their own facilities • Who will supply the necessary hardware, applications, etc. ? • EIP participants will provide their own hardware, operating systems and applications needed to complete testing • The IBM Loaner program is a possible alternate source for hardware • What will EIP test participants be asked to do ? • Provide Name, Title, Phone number, and street address of the EIP test coordinator • Ensure that printers are updated to the latest firmware level available on RSSolutions website • Install and test the new printer drivers • Diagnose and communicate problems with assistance from IBM • Apply driver fixes via driver updates provided by IBM

21. EIP Highlights • Who will provide technical problem resolution during testing ? • IBM Technical Marketing Support will coordinate problem resolution, linking IBM developers and customers / partners performing the tests. • Each IBM geography participating in the test will name at least one Technical Support representative. • What will EIP test participants receive from IBM ? • An email from IBM on or before August xx including links to the new Native Windows Driver, Install shield, and user documentation for driver installation, IBM Tech Marketing support contact • Which Retail segments and geographies can use this solution ? • Potential customers exist in all retail segments and in all geographies. • When will the test begin and end ? • The test will commence when IBM distributes the driver to test participants on or before August 25, 2004. • The test will conclude no later than October 29, 2004

22. Thank You

23. IBM Retail Environmentfor SUSE LINUX (IRES) Mary Beth Morrison mbm@us.ibm.com Offering Marketing Manager Retail Store Solutions Title slide

24. IRES Product Structure – i-listed PRPQ Note that you must order the Software Maintenance (Registration Feature Code) to be entitled for support!

25. Typical Enterprise Configuration for IRES Admin Server Build System Wide Area Network Branch Server Branch Server Branch Server Branch Server Branch Server Store 1 Store 2 Store 3 Store 4 Store 5

26. Determine what IRES PIDs to order Bd AS BS

27. IRES Ordering Steps • Get customer to sign Statement of Work for Support of IRES. THE SOW MUST BE SIGNED PRIOR TO THE IRES PRPQ REQUEST BEING APPROVED!!! NO EXCEPTIONS!!! • Fill out IRES Customer Information Form (word document) – contains information like customer name, customer number, ship-to address. • Submit copy of signed SOW (via fax) and a completed IRES Customer Information Form (via email) to Art Warner; Art’s fax number and email address are included on the IRES Customer Information Form. • Submit i-listed PRPQ Request via normal ordering systems. Don’t forget to include Software Maintenance PIDs in request! • Submit Special Bid as needed. • When approved, submit IRES PRPQ order for required numbers of High End Servers, Low End Servers, and POS Clients. • Remember to use the Sales Checklist as a handy reminder!!

28. Statement of Work information • Note that there is a slightly different Statement of Work for Support of IRES for direct customers and for channel customers • For Direct Customers • SOW is an attachment to the IBM Customer Agreement • The ICA agreement number must be entered on the SOW when it is signed • The Client Rep is responsible for signing the SOW and including it in the transaction paperwork • For Channel Customers • The SOW is an agreement between the customer and IBM – not the partner • SOW is an attachment to the “Agreement for Services Acquired from a Business Partner” (or equivalent agreement) • The Agreement number must be entered on the SOW when it is signed • The Partner is responsible for getting the customer to sign the SOW • The Partner’s IBM Contact / Sales Rep is responsible for signing the agreement on behalf of IBM

29. For More Information • Documents posted for reference and usage • Sales Checklist • IRES Customer Information Form • SOW, and BP Agreement • These charts • For IBMers • Posted on Marketing Repository • For Partners • Posted on Partnerworld for Developers • Don’t hesitate to contact us for help! • Use PartnerLine to submit questions • Knowledgebase will be updated as well with FAQs

30. THANK YOU!!