HyperionEXECUTIVE BRIEFING

Angela Ruffner ~ Chief Executive OfficerTommy Duncan ~ VP of Brands and R&DAdam Blanton ~ VP of Human Resources

Carrie Davis ~ VP of Sales Management/Marketing

Brandon Dobson ~ Chief Operations Officer

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City HyperionGlobal TECKS

ADAPTIVE Success City HyperionGlobal TECKS

ADAPTIVE Success City HyperionGlobal TECKS

ADAPTIVE Success

New York X X X X Curitiba X X Shanghai X X

Atlanta X X X XRio de Janeiro

X X Tianjin X X

Chicago X X X Sao Paulo X X Guangzh X

Los Angeles

X X X XBelo Horizonte

X X Beijing X X

Web Center

X X XWeb Center

Web Center

City HyperionGlobal TECKS

ADAPTIVE Success City HyperionGlobal TECKS

ADAPTIVE Success

Montreal X X Paris X X X

Toronto X X X Rome X X

Calgary X Berlin X X X

Vancouver X X X London X X X X

Web Center

Web Center

Competitors in City - China

Competitors in City - Europe

Competitors in City - United States

Competitors in City - Canada

Competitors in City - Brazil

Sales Office Locations

3Demand Projection

Q8 Q7 $ Change % ChangeTotal Demand Projected 38,000 25,375 12,625 49.75%Total Demand (Actual) 31,260 25,375 5,885 23.19%

In Q8 demand was short of Projection by: 31,260 38,000 (6,740) -17.74%

4Sales Force

Q8 Q7 $ Change % ChangeTotal Number of Sales Offices 421 280 141 50.36%Units per Sales Person 74 91 (17) -18.68%

Number of Sales People

Units Demanded per

Sales Person

Total Demand

Sales Offices

396 74 29,478

Web Center

25 71 1,782

Total 421 31,260

Q8

5Sales Force Compensation

Q8 Q7 $ Change % ChangeTotal Yearly Expense per Sales Person in the U.S 74,936$ 64,237$ 10,699 16.66%Sales Person Productivity in U.S. 93% 84.4% 8.6 10.19%

6Sales Force Expense

Q8 Q7 $ Change % Change

Sales Force Expense 10,108,344$ 6,123,419$ 3,984,925 65.08%

7Ad Judgment

Quarter CostCutter Innovators Mercedes Work Horse TravelerQ8 71 81 85 78 87Q7 68 73 72 59 84

Ad Judgment - United States

8Advertising Expense

QuarterLocal Ad

PlacementsRegional Ad Placements

Q8 152 153Q7 124 106

# of Ad Inserts Bought

Q8 Q7 $ Change % ChangeAdvertising Expense 2,382,781$ 1,793,851$ 588,930 32.83%

9New Features

Desired for:Mercedes, InnovatorTravelerMercedes, Innovator, TravelerMercedes, Innovator, Workhorse

Stylish desktop designStylish rugged portable designDVD read/write drive, high speed, capacityHigh comfort keyboard with wrist rest

New Features available in Q8

10Brand Judgment

Quarter CostCutter Innovators Mercedes Work Horse TravelerQ8 70 91 71 81 83Q7 61 80 58 73 83

Brand Judgment - United States

11Following Strategy

Change in Total Price Q8 Q7 $ Change % ChangeRevenue/Units Sold (F.A.W.) 3,485$ 3,161$ 324 10.25%

12Average Price Comparison

Hyperion GlobalTECKS ADAPTIVE Success

Average Price $ 3,568 $ 2,753 $ 2,871 $ 2,688

Hyperion Success $ Change % Change3,568$ 2,688$ 880 32.74%

13Example of Results

New York Comparison Hyperion SuccessHighest Ad Rating 5 out of 5 0 out of 5Highest Brand Rating 5 out of 5 0 out of 5Number of Local Ads 8 0 8Number of Regional Ads 34 21 13 61.90%Number of Sales people 25 15 10 66.67%Sales Force Annual Compensation 74,936$ 56,450$ 18,486 32.75%First to market Advantage YesAvg. Price 3,783$ 2,806$ 977 34.82%Units Demanded per sales person 72 163 (91) -55.83%Total Demand 1793 2449 (656) -26.79%

14Market Share

15Net Operating Revenues

SegmentQuarter 8 Quarter 7 Quarter 8 Quarter 7 Quarter 8 Quarter 7 Quarter 8 Quarter 7

Cost Cutter - 1,167 0.0% 4.5% -$ 2,332,899$ -$ 1,999$ Workhorse 6,851 3,321 22.1% 12.7% 20,128,362 9,249,725 2,938 2,785 Innovator 10,099 9,252 32.5% 35.5% 36,580,394 31,753,655 3,622 3,432 Mercedes 3,481 - 11.2% 0.0% 15,421,108 - 4,430 - Traveler 8,343 9,269 26.9% 35.5% 27,979,462 29,362,707 3,354 3,168 Unwanted Inventory 2,266 3,072 7.3% 11.8% 2,362,142 2,332,130 1,042$ 759$ Total 31,040 26,081 100.0% 100.0% 102,471,468$ 75,031,116$ Average 3,301$ 2,877$

Change 4,959 424.42$

Revenue change due to price change 5,158,630$ Revenue change due to volume 14,266,297 Revenue change due to sales mix 8,015,425 Total sales change 27,440,352$

Units Sold Sales Mix Net Sales Revenue Price per Unit

16Profit for each segment

Segment Net Profit Q8 Q7 $ Change % ChangeCost Cutter -$ 354,961$ N/A N/AWork Horse 6,793,522$ 3,406,633$ 3,386,889 99.42%Innovator 12,483,844$ 11,291,839$ 1,192,006 10.56%Traveler 12,558,308$ 11,866,012$ 692,296 5.83%Mercedes 6,483,788$ -$ N/A N/A

17Operating Capacity

Manufacturing Q8 Q7 $ Change % ChangeOperating Capicity Units per Day 600 450 150 33.33%Operating Capicity Units per Quarter 39,000 29,250 9,750 33.33%

Q8 Comparison of Competitors production capabilities

Hyperion GlobalTECKS ADAPTIVE Success

Max Fixed Capacity Available 600 400 175 250Chosen Operating Capacity 600 275 150 240

18Cost of Production

Quarter 8 Quarter 7 Quarter 8 Quarter 7 Quarter 8 Quarter 7 Quarter 8 Quarter 7 Average Unit Cost 1,143$ 1,103$ 379$ 315$ 22$ 36$ 1,544$ 1,454$

% Change

Direct Costs of Production

-39%4% 20%

Variable Cost per Unit

6%

Materials Cost per Unit Labor Cost per Unit Changeover per Unit

19Manufacturing Compensation

CompanyTotal

Yearly Cost

Productivity Relative to Potential

CompanyTotal Yearly

Cost

Productivity Relative to Potential

GlobalTECKS 21,689 95.50%

Competitors` Compensation for Factory Workers - China

Hyperion 32,682 100.00%ADAPTIVE 24,072 99.80%

Success 25,254 100.00%

Competitors` Compensation for Factory Workers - Brazil

20Operations Overhead Expenses

Unutilized operating capacity 6,000Excess operating capacity 15%Overhead costs charged to excess operating capacity 223,380Unutilized labor charged to excess operating capacity 2,273,829

Overhead Charged to Excess Capacity

Operations overhead expenses Q8 Q7 $ Change % Change

Excess capacity 2,497,209 444,565 2,052,644 461.72%

21Profit Per Unit

Profit per Unit Sold Q8 Q7 $ Change % Change Explanation

Cost Cutter 0 304 N/A N/A Discontinued Market Segment

Work Horse 992 1,026 (34) -3.31% Increased Sales force expense for this segment by 172%

Innovator 1,236 1,220 16 1.31% Price Increase, but also increase COGS due to new brand features

Traveler 1,505 1,280 225 17.58% Price Increase and decreased feature COGS cost

Mercedes 1,863 0 N/A N/A New brand/segment

22Results of Operations

Results of Operations Q8

% of Revenue Q7

% of Revenue $ Change % Change

Net Income 20,007,840 19.5% 10,340,740 13.8% 9,667,100 93.49%Revenue 102,642,743 100.0% 75,053,556 100.0% 27,589,187 36.76%Gross Profit 54,066,916 52.7% 36,828,144 49.1% 17,238,772 46.81%Expenses 23,576,331 23.0% 20,811,660 27.7% 2,764,671 13.28%

23Hyperion