So, this is how we see ourselves – the bridge that closes the gaps across the one-to-one value chain.

Instructor Notes Several workflow options are available with XMPie. The key is that whether the originator is within a corporate environment or outside and the printer is an in-plant or an outside print service provider, a highly efficient production workflow can be enabled. Let’s now look at some of the various workflows that can be implemented using the solution.

Instructor Notes Modularity, Specialization, and Collaboration enable a highly concurrent workflow that matches very nicely the implementation workflow of one-to-one publishing campaigns – at Enterprises, Agencies, Printers, and other Marketing Service providers.

There are three key ideas behind XMPie’s PersonalEffect™ solution; they are surprisingly simple, yet very powerful: Modularity: Modular integration of the three major components that are part of every rules and data-driven publishing campaign – the Data, Logic, and Design. Specialization: Providing separate tools, each for a unique profession, that match quite closely the needs for developing one specific component of these three major modular building blocks Collaboration: Provide streamlined communication across these tools (You may chose to explain items on the slide in more detail here, or in the relevant places in the following slides…).

This is a screenshot of the uPlan tool while developing a specific Plan. It’s a Java-based, Mac and PC, application, targeting the data or programming professionals of the campaign development team. In uPlan, and all other PersonalEffect modules, we use the term ADOR® objects to refer to the Variables of the Campaign. ADOR stands for Automatic Dynamic-Object Replacement, which is the name of our core technology. The Plan may have other variables but only the ADOR objects are going to be visible (and, thus, usable) by the rest of the PersonalEffect modules (we will see it in the section on uCreate and, time permitting, in the demo). Please note that for each ADOR object there is a rule. The rules sophistication ranges from simply assigning a value from a database field, through more complex ones that apply some conditions or arithmetic computations based on, say, database information, to full SQL queries that exercise the database to its full potential. This power of the rules language – which we call QLingo™  is the source for the extreme versatility in the kind of campaigns that PersonalEffect can support: from campaigns driven by simple, flat-table, pre-processed data, up to ones driven by live, real-time connection, to one or more, multi-table relational databases. We will discuss further the database functionality when we discuss uProduce. uPlan is about creating Plans; in that respect it may even be used without a database altogether. uProduce is about executing these plans – it must have concrete connection or access to relevant databases. This separation between Plan development and Plan execution is the main source for the data-related flexibility of PersonalEffect. In many cases, especially when several organizations are involved, it is never the case that the full final data is available in campaign-preparation time (when Plans are being developed). This is the reason for the Data Schema section of the Plan, which is represented in the lower-left corner of the uPlan screenshot. As part of the Plan one specifies what schema (view, structure, list of tables with specific fields for each table) is expected. As part of executing a Plan the system verifies that the actual database supports this schema. This makes it rather easy to connect different databases, to reuse a campaign with different data, etc. – operations that become a nightmare without the elegant modularity of the Logic and Data components provided by PersonalEffect.

This is a screen shot of uCreate in the context of Adobe InDesign. The look and feel of uCreate within QuarkXPress, Macromedia Dreamweaver, or Adobe GoLive, is very similar. uCreate works with InDesign in a Mac or PC environment. You can see that the mid-section of the uCreate palette has in it the names of all Campaign Variables (the ADOR objects). This is all what a designer sees from the Data and Programming world. The names appear there as a result of “linking to a Plan” – an operation of uCreate that the designer needs to launch in order to design for a specific campaign. Creating a dynamic object, say a picture box with a picture that changes from recipient to recipient, is very simple: one creates a static picture box and then assigns the relevant ADOR object to that box. That’s all. By this simple assignment of an ADOR object to the picture-box (instead of assigning to it a static picture), the designer created a dynamic picture-box and, behind the scenes, indicated what rule should be used to drive the picture selection. Same process will be followed for text boxes, text words, and other objects, such as tables, etc. uCreate provides sophisticated yet simple preview and proof capabilities, both for the initial phases of collecting and selecting the proper assets (this is the “Sample Data” operation) and for the final phases of reviewing the results for specific recipients etc. The availability of these preview and proof capabilities in the context of a desktop document, with the WYSIWYG promise, is highly valuable. We will see more details in a demo. (next slide)

Here we see several instances of the dynamic document for this postcard. Each represents the way the document will look for a specific record in the proof-set (which naturally matches a specific real or sample recipient). Each such document-instance in generated by assigning to the relevant design objects the specific pictures or text fragments that were calculated for the ADOR objects with which they were associated through uCreate. Making changes either in the Plan or in the Design is still possible and reviewing the results is either immediate or requires simply re-linking to a Plan or computing a new proof-set and re-linking to it. In essence, with uCreate one uses intuitive, native, and simple operations to create Tagged design-documents. A dynamic design-object is tagged by the name of the ADOR object that was assigned to it . At the time of production, the values of the ADOR objects, as computed by the Plan for a given recipient, are replacing these tagged placeholders, effectively generating an instance of the document that is customized to this specific recipient. In print production one rarely generates one instance at a time, but this is really the smarts of uProduce. Now let’s see how a Plan, Tagged Designs, and Data are put together to create highly customized copies of these dynamic documents.

uProduce is server s/w, operating over Windows 2000 s/w. This is a screen shot of the uProduce Dashboard, showing the Campaign View. A Campaign is like a container – it is where the Plan, Data, and Designs are assembled together to enable creation of the various document instances. Its unique in that there is one Plan, one Data source (there may be several different databases, including media), and one or more Documents. They can all be in the same Campaign provided that: The Data source matches the Data Schema specified by the plan The Tagged documents are all using Tags (place holders) that match the ADOR objects defined in the Plan (a document in the campaign can not have tags that do not match the ADOR objects defined in the Plan; however, a document in the Campaign does not have to have Tags of all the ADOR objects) The key cross-media principal of our architecture is that Plan and Data are to be shared across media, but designs (i.e., documents) should not. In order to do production of one of the documents in the Campaign, uProduce needs to take in a list of recipients – which can be specified in a variety of ways – and to repeatedly process the Plan for each recipient, assign the resulting ADOR objects into the relevant place holders (Tags), and generate the needed target-media format for rendering this specific document instance. For Print its done in such a way that the result is a stream in, say, VPS. For Web, one can do batch production, as above, that will result in many HTML files. However, more typical is to generate each one of these individual HTMLs upon request – this is the on-demand production, and we will discuss it further in the demo. For those with a need to understand the inner workings of uProduce, please go to the next slide.

This is a high-level architectural view of the PersonalEffect platform, from its desktop tools to its servers. (Speak the slide.) (Emphasize also that) It shows that uProduce has the capability, through Microsoft standard o/s and middleware s/w, to link to commercial grade databases of a variety of types.

eNeighborhoods specializes in digital services for real estate companies and agents. Once a year NRRE magazine does a story on eNeighborhoods. eNeighborhoods had recently acquired a database of satellite maps and wanted to promote this service. They had the idea of a variable cover with a satellite map of the recipient’s address and came to Hogue printing for the implementation. The maps in circular image boxes is due to InDesign. This level of professional design would have been unattainable with overprinting or a PDF-based (i.e. non-InDesign) workflow.

Note the speed at which this was implemented. The job required tight design specifications from the magazine publisher, the data involved two companies, and the binding of the cover to the offset magazine needed to be tested prior to their approval to run the job. The shelf life for this issue of the magazine is higher than for a typical issue of a trade magazine. eNeighborhoods and NRRE have received an unprecedented level of positive response to this issue (calls, e-mails, etc.) The satellite photo service is off to a good start.

The importance of the Pantone campaign example is in two areas: Color matching Benefits of design in InDesign (vs. proprietary VDP design tool) Pantone matching on printed postcard Results from the personalized and cross-media campaign This campaign is for the Pantone Spyder, which calibrates a person’s monitor to be ideal for designing with Pantone colors. The color goal was that after calibrating your monitor with the Spyder, it would match the postcard that was sent with the promotion. This required both a VDP design tool that would respect color management for Pantone color matching, AND a digital engine that was Pantone certified. Note the response URL with the recipient’s name.

Examples of the personalized web landing page. Point out how the person that got the red card, gets the red page with the tattooed woman and the person that got the blue card gets the blue page with the tattooed man. This is because both the card and web page are created on-demand by one server, using the same data, rules and customer records, and a complimentary set of image assets. (Note: avoid any discussions about clever personalization here. The only thing really personalized was the name. Which card was sent was determined by assigning a record the number 1, 2 or 3 only. Their only goal was that if many cards went to one design team, that there would be variety within the mailing that they saw.

This is a picture of a 3rd touch point, e-mailed in January. It also had the response URL. This is Pantone’s first variable data campaign and it achieved unprecedented results. They have run similar campaigns “static” and did not achieve these levels of sales from them.

This was the first job landed from showing the Jr. Achievement samples. Note that the blue circles throughout the presentation show where the data is variable. Again, this shows the benefits of using InDesign. The name is in different colors and sizes. The white knockout text would be impossible with overprinting. “Henry” also appears lower case in the mailing address, along with mailing standards such as the bar code.

Looking closer we see the map of the route from the recipient’s home to the nearest Sears store, its address, and a calculation of the number of steps it would take to walk this route to get one’s new shoes. Point out that this is what we mean by personalization and relevancy – simple in concept but far beyond just a name. The only data needed was name, address, a database of store locations. The route and steps were calculated from these.

Wolverine has not previously been the #1 selling shoe in its category. The results in sales were evident the first weekend after the mailing.

Instructor Notes One of the largest, HV3-type application that was fully implemented in ’04 is a solution known as the GM Card program. This application fully utilized the modular workflow of XMPie with the design being done in one location, the templates composed in another, and the production completed at a different location.

One of the main applications for Web-to-Print that any corporate HQ or ad agency can relate to. Benefits to printer too. (Be careful with this one since Goodway lost this client when the creative agency decided to switch to another printer, but keep the GM Card business and application. Not something we want to publicize, but you can’t really talk about repeat business.)

Depending on the implementation, this can make one PDF that is printed offset or digitally (i.e. versioning) or a dealer could upload their own database also allowing for 1:1 personalization for printing on-demand digitally.

Built with uGen. See how they can select form the cars on the left side and they go right into the page on the right side.

Both control and personalization are possible.

Largest iGen3 installation in North America, with 4 iGen3 in one location. Prints 70-80 of the volume on the 4 iGen with VDP, all using XMPie solution. Uses the web2print capabilities of XMPie, the cross media (email, web, print), the scalability and the throughput. Look at: http://dme.campaignofthemonh.com/ for customer explanation.

Largest iGen3 installation in North America, with 4 iGen3 in one location. Prints 70-80 of the volume on the 4 iGen with VDP, all using XMPie solution. Uses the web2print capabilities of XMPie, the cross media (email, web, print), the scalability and the throughput. Look at: http://dme.campaignofthemonh.com/ for customer explanation.

Largest iGen3 installation in North America, with 4 iGen3 in one location. Prints 70-80 of the volume on the 4 iGen with VDP, all using XMPie solution. Uses the web2print capabilities of XMPie, the cross media (email, web, print), the scalability and the throughput. Look at: http://dme.campaignofthemonh.com/ for customer explanation.

This is a study performed by Frank Romano… one of the foremost digital printing experts in the world. In conjunction with a major direct-mail marketing organization, several variable information programs were developed to test various approaches to personalized and database printing. Program One The most basic mailings (static, black and white) had a response rate that averaged 0.46% - which was under the so-called industry standard of 1%, but may be closer to an industry average. Program Two Adding a NAME ONLY to the piece – a basic level of personalization – increased response rates by 44% over Program One’s static, black and white mailing. There is anecdotal information that adding a name to a mailing no longer has the power it once had. In this test, it did have some effect. Program Three Adding FULL COLOR increases response rates by 45% over Program One’s static, black and white mailing. It was surprising that this level of response was so close to the personalization level of response, but even more surprising that color alone could have such a positive effect.

Mailing Four Adding NAME ONLY and FULL COLOR increased response rates by 135% over Mailing One’s static, black and white mailing. Mailing Five Applying DATABASE information in constructing the offer increases response rates by over 500% over Program One’s mailing. Tying the mailing into something you know about the recipient – past buying habits being the most common – appears to provide a significant benefit. The database information should be used in such a way as to not threaten the recipient’s privacy. As you can see by mailing number five… good customer intelligence – in the form of variable information – and full color graphics make for a very formidable team.

Variable Data Publishing Dan Doron Vice President, Business Development

2 Agenda Who is XMPie? What are the challenges XMPie Approach Our solutions Customer examples

3 XMPie - Who are We? A spin-off from Scitex Headquarter in the US (NYC) with R&D office in Israel A leader in 1 to 1 cross media communication and publishing Founders invented VPS while at Scitex Collaborating with key leaders in printing and publishing, such Xerox and Adobe Sold by Xerox almost globally Has about 40 customers in Japan

4 Closing the Gap between Business Intelligence and Business Communication

5 What Are the Challenges? How can we make our marketing campaigns more Effective Efficient Relevant

6 Sample Cross Media Campaign

7 PersonalEffect in action – the Joy Travel Promotion Campaign Personalised postcards – each recipient is offered a different location Different language Different offers

8 Personal Response URLTM Personalised, printed URL: from personalised postcard to personalised landing page www.4joytravel.com/gilbert.delorme www.4joytravel.com/gisella.achen www.4joytravel.com/craig.cobley

9 Response URLTM – Personalised Landing Page Detailed offer with different languages, destinations, club membership levels…

10 Corporate Marketing Line of Business Owners CRM IT In-House Creatives Creative Agencies In Plant Commercial Print Mail Services IT Archiving The Data-driven Marketing Workflow Originators Printers Install XMPie PersonalEffect at one entity or several together for an efficient workflow.

11 Brief PersonalEffect™ – the Workflow

12 PersonalEffect™ Tools and Technology

13 uPlan Interface to Design (Variables) Rules Interface to Data (Data Schema)

14 uCreate uCreate Plug-in

15 uCreate - Preview

16 © XMPie 2003 12 uProduce

17 MS Access PersonalEffect™  the Platform ORACLE XML DATA IBM-DB2 MS-SQL uCreate uPlan

18 PersonalEffect is all about Distributed Workflow Separate tool for each profession/discipline uPlan, uCreate, uProduce Cross Media Variable Data Publishing (VDP) One solution for Print, Web, Email, Mobile Web 2 Print VDP Platform Platform for growing business uGen + API – for maximum flexibility uStore – out-of-the-box W2P VDP solution

19 Key Products uDirect™ Standard Entry-level (yet professional) desktop package for VDP InDesign-based, Mac and PC Supports all features of InDesign – Variable Text, Images, Layers, Pages, Style Including special effects as Text on Path, Transparency, Drop Shadows, etc. Copy-fitting, Autoflow, Step & Repeat, Media Selection uDirect™ Professional Comprehensive database – multi-tables, relational, remote databases Advanced programming – SQL, QLingo, Java and VB scripts, DLL’s Dynamic tables, uChart (optional), uImage (optional) PersonalEffect™ - Print, Cross-Media, W2P Server-based solution for Variable Data Publishing Distributed workflow Cross-media publishing Web to Print platform

20 uChart – Data Driven Graphics Dynamic Tables, Charts, AutoFlow

21 Charting & AutoFlow

22 Creative charting Using InDesign “Object Frame” feature Plus clipping

23 Based on Adobe Photoshop Supports all special effects, artwork, actions, scripts of Photoshop Including third party plug-ins Automates both text and images effects Seamless integration with uDirect Professional and PersonalEffect Creativity limited by designer’s skills No click charge! uImage - Image Personalization

24 uImage - Image Personalization

25 uImage

26 Based on Adobe Photoshop Supports all special effects, artwork, actions, scripts of Photoshop Including third party plug-ins Automates both text and images effects Seamless integration with uDirect Professional and PersonalEffect Creativity limited by designer’s skills uImage - Image Personalization

27 uImage = uWOW

28 Customer samples

29 Hogue Printing for eNeighborhoods

30 Hogue Printing for eNeighborhoods Courtesy: Hogue Printing, eNeighborhoods, NRRE Magazine < 1 month, concept to print 31,555 records Back offset, front digital Rapid and broad awareness and understanding of the new service People keep the magazine and show their colleagues and friends

31 Magicom for Pantone Printed by Colorcentric

32 Magicom & Colorcentric for Pantone

33 Pantone - Results Achieved 113% of Spyder sales plan (and still counting) 7.87% went to the web site 6.21 % filled out form www.pantone.com/spy2/KristinAnderson

34 Yoffi/Trekk for Sears/Wolverine

35 Yoffi/Trekk for Sears/Wolverine

36 Yoffi/Trekk for Sears/Wolverine

37 Sears/Wolverine - Results Wolverine was the #1 selling shoe in its category at Sears during the run of the campaign Wolverine will be running this campaign with 4 other resellers

38 Campbell-Ewald Develops Creative Direction GM Dealer Web-enabled, 1 to 1 Direct: A Collaborative Process Creative Design GM Provides Marketing Direction and Funding Strategy/Funding Goodway Group Builds XMPie templates Digital printing Web site hosting Application development, production and hosting XMPie Opportunity: Support rich VI content Manage agency-printer collaboration

39 Goodway Graphics for GM Card Goals for National Campaign GM - Corporate marketing Consistent design Maintain corporate image Guarantee print quality Customize on dealership level and Personalize on customer level Local dealerships Graphics and message “make sense” to their locale Display their logo and location Use their customer data

40 Goodway Graphics for GM Card Dealer enters Dealership Information

41 Goodway Graphics for GM Card Dealer selects Templates and Graphics The list is coming from uProduce through API’s

42 Goodway Graphics for GM Card Dealer enters Bonus Offers Dealer uploads database and submit job

43 Goodway Graphics for GM Card Goodway is central point Managing the print submissions Printing to corporate specs Mailing

44 DME – Daytona Beach, Florida Campaign of the month - http://dme.campaignofthemonth.com/

45 DME – Daytona Beach, Florida

46 DME – Daytona Beach, Florida

47 Inc Direct - The Carphone Warehouse 16 pages welcome pack with 90 variables

48 Inc Direct - The Carphone Warehouse Renewal newsletter

Thank You Please visit us at: www.xmpie.com © XMPie

50 0.46% 1 44% increase (0.66%) 2 Response Rates with Static and Personalized Marketing Communications Romano and Broudy 45% increase (0.67%) 3

51 Response Rates with Static and Personalized Marketing Communications