© 2007 Kensington Computer Products Group, a division of ACCO Brands

Connect it!U.S. Sales & Marketing MeetingOctober 2008Leonard Tsang

Agenda

1. Category Objective

2. Market Trends

3. Category Storyboard

4. Marketing tools

5. What we need from you

6. Questions

Objective

Objective

B2B: Solidify market leadership in 3rd party universal docking solutions

B2C: Continue to build connect category for consumer

smart made simple

TM

Market Results

Connect It! is a $200MM+ category. Overall, the category is -5% vs. YAG

* These figures include docking stations and port replicators only

Connect It! Category Dollar Sales (vs YAG) *

Source: NPD YTD August 2008 (vs. YAG) – Docking Stations and Port Replicators

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

2007 2008

-5%

The docking station market is dominated by OEM (90%+ market share)

Lenovo, 59.3%

Hewlett Packard, 31.7%

Sony, 1.1%

Targus, 0.9% All Other, 4.2%

Kensington, 1.3%

Motion Computing, 1.3%

Source: NPD YTD July 2008. Lenovo Enhanced Port Replicator not included. Lenovo sku valued at $3MM annually

Docking Station Dollar Share

Bulk of Kensington docking stations are sold through B2B

B2B, 87%

Retail, 13%

Source: NPD YTD August 2008

KTG Docking Station Tradeclass Contribution

Within 3rd Party docking solutions however, Kensington dominates the market

Kensington, 43.0%

Targus, 28.1%

Belkin, 10.1%

All Other, 18.8%

(+14%)

(-8%)

(-4%)

(-1%)

Source: NPD YTD August 2008

3rd Party Docking Station Dollar Share (vs YAG)

However, we have not only been successful in

docking solutions

2008 Major WinsOEM– Lenovo-branded docking solutions: $3MM+ in 2008– Lenovo-branded Dual Monitor Adapter: $2MM of ’09 revenue

Retail– Share central win @ BBY– Media Share Cable win @ Apple– Continued strong sell-through of BT adapters @ Circuit City

What’s our plan?

Objective: B2B: Solidify market leadership in 3rd party universal docking solutionsPositioning:

– Kensington offers the broadest and most advanced solutions for the OEM market

Strategy– Use WUSB as hero product to showcase technology & category

leadership

B2C: Continue to build connect category for consumer Positioning:– Kensington is the leader in “Smart made Simple” connect

solutions for home

Strategy– Drive awareness of / create demand for our consumer sharing

solutions

The Connect It!

Story

Target User Environments

HomeOffice

Consumer Pain Points…

I want my home office to still look like it is part of my

home. So many mobile accessories

make my home office look

like…my office!

Give me a

solution that is easy to set-up

and RELIABL

E!

There is so much cable clutter in my home office!

Source: One & CO Connect It Research & Positioning, 3/07

2009 Focus Skus

Strategy 1: B2B: Use WUSB as hero product to show technology & category leadership

First USBIF-certified docking station– At least 6 months ahead of competition

Ultimate user experience– Get in range, and your legacy peripherals come to

life– Streams Audio AND Video from laptop wirelessly– DVI out, supports up to 23 inch widescreen displays– Dual View button for easy mgmt of screen modes– 5 USB2.0 ports: 1 in front, 4 in back– Same space-saving form factor as award-winning

SD200vUse WUSB docking station to showcase/increase awareness of KTG’s leadership in UNIVERSAL docking solutions

– Unlike OEM docks, our products work with ALL laptops seamlessly

Understand and influence GTM activities for OEMs

Cross-sell with hardware/monitors to create synergy and improve value proposition

K33367US-A $179.99Notebook Expansion Dock with Video

K60721US $119.99sd100s Notebook Docking Station with Stand

K33419US $79.99sd100 Notebook Docking Station

K33415US $139.99sd200v Notebook Docking Station with Video

MAC Driverin BETA

MAC Driverin BETA

• Convenient and seamless 1 USB-plug solution• Ethernet support• Video/Audio: VGA out (1280 x 1024), stereo out,

mic-in• Universal – works with any PC notebook with

USB connection• 4-port USB hub• With Mac Beta Driver, works with OSX as well!

• CES Award-winning form factor saves desk space and hides wire-clutter

• Convenient and seamless 1 USB-plug solution• Video/Audio: VGA out (1280 x 1024), stereo out,

mic-in• Universal – works with any PC notebook with USB

connection• 4-port USB hub• With Mac Beta Driver, works with OSX as well!

We have these other great docking solutions as well!

• Convenient and seamless 1 USB-plug solution• Ethernet support• Universal – works with any PC notebook with

USB connection• 4-port USB hub

• Convenient and seamless 1 USB-plug solution• Ethernet support• Universal – works with any PC notebook with

USB connection• 4-port USB hub

How do we stack up to our 3rd party competition?* Updated competitive analysis will be provided

Strategy 2: Retail: Drive awareness of / create demand for our consumer sharing solutions

Focus sku: ShareCentral

Ultimate user experience– Plug and Play, no network set-up required– No more un-plugging and re-plugging shared devices – Devices clearly labeled with interchangeable button

plates– Active computer clearly indicated with bright LEDs– Smart Made Simple design eliminates cable clutter– High-speed USB2.0 = fast data access. Can be used

to share data in high-speed with hard drives and flash drives

Leverage BBY success with ShareCentral to gain incremental channel placements

– BBY ran focus groups: ShareCentral tested extremely favorably– BBY running page up during October

Explore x-selling opportunities: printers/hard drives…etc.

Category training for in store reps – why do consumers need ShareCentral?

Identify market segments within B2B channel and put plan together for launch; fast follow retail success for awareness push within VARs

How do we stack up to other KVM Switches?

Internal Roadmap

Docking Solutions & StandsK33367US-A $179.99Notebook Expansion Dock with Video (Vista Compatible)

K60721US $119.99sd100s Notebook Docking Station with Stand

K60149A $19.99LiftOff™ Portable Notebook Cooling Stand

K33419US $79.99sd100 Notebook Docking Station

K60112US $29.99Easy Riser Cooling Notebook Stand

K60723US $84.99Notebook Stand with USB Hub

No Software

No Software

No Software

K33415US $139.99sd200v Notebook Docking Station with Video

Apr May Apr May JuneJune July Aug July Aug SeptSept Oct Nov DecOct Nov Dec Jan Jan FebFeb Mar Mar

MAC Driverin BETA

MAC Driverin BETA

K33920 $229.99Wireless USB Docking Station

Bluetooth Connectivity

K33348USA $29.99Bluetooth® USB Adapter 2.0

K33902US $39.99Bluetooth® USB Micro Adapter

Apr May Apr May JuneJune July Aug July Aug SeptSept Oct Nov DecOct Nov Dec Jan Jan FebFeb Mar Mar

Hubs

K33118A $49.99DomeHub USB 2.0 (7 Ports)

K33366 $39.99PocketHub 7 Port USB

K33141 $29.99PocketHub USB 2.0

K33399 $19.99PocketHub Mini 2.0

Apr May Apr May JuneJune July Aug July Aug SeptSept Oct Nov DecOct Nov Dec Jan Jan FebFeb Mar Mar

Peripheral Connectivity

K33901US $79.99ShareCentral™ 5

K33900US $59.99ShareCentra™l 2

33903US $39.99ShareCentral™ 1

K33907US $119.99Dual Monitor Adapter

Apr May Apr May JuneJune July Aug July Aug SeptSept Oct Nov DecOct Nov Dec Jan Jan FebFeb Mar Mar

K33906US $59.99File transfer cable for Windows

Other USB Devices

K33120 $19.99Flylight 2.0

Apr May Apr May JuneJune July Aug July Aug SeptSept Oct Nov DecOct Nov Dec Jan Jan FebFeb Mar Mar

Marketing Tools

Competitive Landscape

New Products Flyer

Spec sheets

Flash demos

Website updates

Promotional plans

PR Plan

What we need from you…Docking Solutions:

– Understand and influence GTM activities for OEMs

– Cross-sell with hardware/monitors to create synergy and improve value proposition

– Use CES Design & Innovation award win and reviews to showcase & create buzz at CES, OEM and retail accounts

– Leverage WUSB buzz to showcase KTG’s leadership in docking solutions, and bring awareness to the entire docking station range

Sharecentral:– Leverage BBY success to gain incremental

channel placements– Cross merchandise with printers and other

USB devices– Category training for in store reps– Identify market segments within B2B channel

and put plan together for launch; fast follow retail success for awareness push within VARs

Questions?