Barco Strategic Alternatives

1. Barco Strategic Alternatives Marketing Strategy, 37000-04 October 23, 2008 Presented by: Suzanne Harvey Maggie Holt Phil Larson Dan Villalon Nate Wilhite

2. Issue Competition Market Risk – Sony seeks to consolidate the high- and mid-markets with the 1270 “SuperData” projector Product Risk – Sony 1270 is a superior product that dominates BPS’ product line on both price and performance Supply Risk – Sony manufacturers the cutting edge tubes BPS needs Company Defined market based on scan rate instead of overall picture quality and ease of use Customer Rapid growth in mid- to high-end projector market Willing to pay a premium for higher picture quality (e.g. scan rate, lumens, resolution)

3. Recommended Strategy Why? BPS cannot compete except at the high-end Competitive advantage in high-end electronics for projectors Distribution channel not geared towards low- to mid-market Status quo is not sustainable 30-60% potential market share loss and 75% of profit at risk Risk of product obsolescence Cannot compete on price alone How? Shift all resources to immediate development of BG800 Maintain current pricing until 1270 pricing announced

6. Promotion & Placement Strategy Promotion BPS should focus advertising efforts on the North American and Far East markets, emphasizing the superior technology and ease of use of the BG800 Sony 1270 will be heavily advertised in Europe -- largest-ever publicity campaign already initiated BPS has the opportunity to focus efforts on two higher-growth markets, and should be willing to commit greater resources to this Placement BPS must maintain focus on systems dealers and continued training at the dealer-level Dealers should be given increased commissions and bonuses to convert existing BD700 owners or 1270 orders to BG800 This must be communicated to dealers immediately, as orders for 1270 have already commenced Existing corporate customers, like IBM, should be approached about converting to the BG800