Bob Howell

2. Bob Howell Director Distribution Systems/Off-Air Antenna Business Group

3. Your Bottom Line • Offer ideas and suggestions that will impact your bottom • Create more revenue opportunities • Quality educational programs for you to attend

4. Public Service Announcement Dealer Appreciation Party sponsored by John Carbone, President of SPAUN/USA Saturday evening at 8 PM Park Place Hotel - Poplar and I-240 Enjoy Music - BBQ - plenty of Beverages “Thanks For Coming To Satellite Expo 2005”

5. 51 year old company • Started by John Winegard • a self-educated engineer/inventor • Emerged as a leader in this industry

6. John, as a child of the Depression developed his first antenna using • Prince Albert tobacco can • Model-T Ford horn • Battery salvaged from behind the town’s telephone company

7. World War II brought John his first formal training in communications • John returned to Burlington as a radio repairman just as the television industry was developing • Two hundred miles east of Burlington, Chicago TV station WBKB (now WBBM)

8. A natural for the entrepreneur, John constructed his own antenna and installed it on the roof of a local appliance dealer’s shop • The idea caught on and soon friends were ordering his antenna - • Thus, the Winegard Company was born

9. January 1954 – • Winegard introduced the world’s first all-channel Yagi television antenna - the Interceptor which completely changed the antenna industry

10. By 1959 – • Winegard produced 156 different models of antennas • National and International sales in all 49 states, Canada, Sweden and Belgium • First to introduce the 10 foot perforated satellite dish back in the C-band days

11. In the 90’s – • Digital satellite television became a reality • Winegard developed satellite antennas for residential and mobile applications • First to developa mobile satellite system that would automatically toggle between DIRECTV and Dish’s satellites.

12. Winegard has been granted 60 patents over the years • 26 current U.S. patents • 2 current foreign patents • Winegard’s 61st patent, once granted, will be for the SquareShooter

13. Inducted into the 2005 Consumer Electronics Hall of Fame, John Winegard was recognized as a true pioneer in the consumer electronics industry along with 87 existing members

14. With over 1,000 products to its credit, Winegard manufactures over 500,000 satellite dishes a month along with several other satellite products in support of the industry • Winegard continues to be leader with significant force in the satellite industry

15. DTV Conversion • How the impact will effect us… • On the professional level in business • Most importantly, the affect on the consumer

16. DTV Conversion FCC’s purpose is three fold • New frequencies for new immerging technologies • Provide additional frequencies for the EMS band • Strengthen America's security • Government to auction freed-up band space • Balanced budget amendment, estimated to raise $10 billion

17. DTV Conversion • A draft resolution of the cut-off date released • U.S. Rep. Joe Barton, R-Texas, Chairman of the House Energy and Commerce Committee • Rep. Fred Upton, R-Michigan, Subcommittee's Chairman Digital Television Transition Act of 2005

18. DTV Conversion • Most importantly, a "hard date" is proposed for the analog shut-off is December 31, 2008 • Providing a timetable for broadcasters to release their analog broadcasting spectrum

19. DTV Conversion • Legislation to provide $463 million to fund equipment for low-income households that rely on off-air signals for TV reception • Sponsored by Senators John McCain (R-AZ) and Joe Lieberman (D-CT), the digital switch date is being proposed for January 2009

20. DTV Conversion • Date will effect the sense of urgency of the consumer • Additional time will have a positive result in allowing more time for planning • Provides adequate time-frame to educate the public about DTV and HDTV • Will accelerate interest and generate sales

21. Low Cost Converter Box • Association for Maximum Service Television Stations and National Association of Broadcasters • Jointly in pursuit of prototype high quality, low cost digital to analog converter box for terrestrial DTV reception • Allows installers additional time for proper training • Don’t leave an installation site with money on the table

22. DTV Conversion • The impact on the consumer will be huge • This technology will totally change the way TV programming is received • Cost to the consumer will steadily decrease

23. Digital TV Pricing

24. Off-Air Broadcasts • 107 million TV households in the US • 73 million television sets not connected to cable nor satellite • 45 million sets rely exclusively on local, 'over-the-air' stations

25. Off-Air Broadcasts • Off-Air reception of local DTV/HDTV broadcasts natural supplement to satellite reception, particularly HDTV • Revenue opportunity

26. Transition • 1,497 stations in all 211 local broadcast markets serving 99.99% of U.S. TV households have made the transition to broadcasting DTV/HDTV signal • Increasingly, more and more digital programming at the highest levels of resolution and sound quality are now being produced

27. Off-Air Antenna Requirements • Antennas are required to receive Off-Air DTV and HDTV • The right HDTV antenna is no longer an accessory, it is a necessity • Getting the best HD picture starts with the best antenna for the job

28. OTA Interference • Over-the-air DTV transmission is stronger than analog • Interference weakens the signal digitally, they get no reception and no picture

29. Satellite Local-to-Local on Horizon • Satellite program providers are going to begin broadcasting local-to-local in HDTV format • DIRECTV was first to launch new satellites with plans to launch 3 to 4 more new satellites for local-to-local channels in an HDTV format • This will become evident in the near future in the top 50 markets as you begin viewingthe HDTV format

30. Off-Air Market • There will always be a market for Off-Air antennas • Local-to-local satellite service definitely impacts the number of homes with Off-Air antennas

31. Financially, there is a lot of money at stake for the many in the industry – • Broadcasters • Antenna manufacturers • Set-Top box manufacturers • Digital TV manufacturers • Satellite companies • Cable companies • Retailers and distributors • Installers • NAB, CEA and FCC

32. “Skirmishes between broadcasters and consumer electronics interests…” • We should all be working together and focusing on what is best for the consumer

33. Hard Ball • Mistakes are being made! • Service providers are taking positions in their best business interests • This comes, sometimes, at the expense of the consumer

34. Cable vs. Broadcasters • A feud exists between some cable companies and some local broadcasters • NAB is doing a good job of educating the consumer • Cable companies are running ads about the purchase of Off-Air antennas and installation costs • Very few things in life are free

35. What if Broadcasters Respond • What purpose is served if broadcasters run ads saying cable subscribers needs HD-specific equipment and that they will probably pay extra for it… • The end result will be very frustrated and confused consumers • Who will suffer from these turf wars? • All of us in this room!

36. Consumer Needs • The needs of the consumer is paramount to everyone • The consumer will… • Drive sales • Dictate success • How do they see this new hi-resolution fabulous picture • The consumer will want all the HDTV they can get • Getting along during the transition is the payoff for everybody

37. HDTV Equipment Issues • There is a definite need for the establishment of voluntary industry standards of the minimum/maximum input levels • Presently, installers equipped with a digital meter are not able to determine if the level is within the “sweet-spot” • Identifying the amount of dB multipath level that the ATSC chip set can process • Generation 1 and 2 about 4 dB of multipath • Generation 3 between 5 dB and 7 dB • New generation 14 dB of multipath

38. Multipath • The main cause of digital interference and the key to selecting the right antenna for the job • Occurs when several different signals reach an antenna, out-of-phase or at differing time intervals • Creates a digital multipath condition delivering several sets of digital data confusing proper decoding

39. Issues • Advanced Television Systems Committee (ATSC) • If standards are not put in place, the chipsets will not be sure which set of digital data is correct • If multipath is too high - chipsets will not decode any data, and the customer ends up with a blue screen

40. Critical Installation Issues • 30 to 40 million sets are using Off-Air antennas • Installers MUST be able to locate the “sweet-spot” in order to determine the appropriate signal level for the customer’s receiver • How much multipath that receiver can handle is the key to a successful install

41. Help Make It Easier • All efforts should be taken to make the conversion easy for the consumer • They will embrace this new technology and welcome the conversion with open arms and pocketbooks

42. Good – Better - Best • Different digital formats- • SDTV is good, EDTV is better and HDTV is the best quality • Analog, SDTV, EDTV and HDTV sets • Look at active lines and pixel count

43. Broadcast Formats

44. Good – Better - Best • HDTV delivers over 2,000,000 pixels in 1080i compared to analog’s 250,000 pixels • Have no doubt, off-air signals offer full HDTV resolution at 720p and 1080i and it’s free

45. Trends • The trend for home HDTV antennas include: • New technology • Smaller packages • Aesthetic, sexy designs • User friendly • Easy to install

46. Designed for Indoor/Outdoor Use • Compatible with set top boxes • Can be mounted practically anywhere

47. Challenges • The largest challenge in Off-Air digital reception is dealing with the multipath or balanced signal • Must mitigate digital multipath problems

48. Off-Air Antenna Sales Increase • This increase was generated by DTV industry • Largest off-air segment effected is the metropolitan/urban consumer • This geographic area drives this need for Indoor antennas • Dealing with multipath in new indoor antenna technology creates a huge industry-wide opportunity • Manufactures and electronic mass retailers, alike

49. TheOutdoor Market • New technology • Smaller antenna systems • Aesthetic appeal • Easy installation • Can be mounted practicallyanywhere

50. Installation • Installers will be delighted with the installation options • These new smaller antennas can be piggybacked with existing satellite installations and diplexed onto the existing cable run