COMPANY NEWS UPDATECOMPANY NEWS UPDATE

Doug Olzenak - PresidentDoug Olzenak - President

VISIONVISION

With a progressive and proactive culture, With a progressive and proactive culture, Allied Vaughn will be an organization that Allied Vaughn will be an organization that

provides industry-leading value to our provides industry-leading value to our customers, first by gaining a thorough customers, first by gaining a thorough understanding of their communications understanding of their communications objectives and business goals, then by objectives and business goals, then by

providing media solutions that will insure providing media solutions that will insure the maximum return on their the maximum return on their communications investment.communications investment.

Serving the CustomerServing the Customer

TrainingTraining

SALESSALES

R e g io n a l S a le sM a n a g e r

R e g io n a l S a le sD ire c to r

S a le sT e a m

TRADITIONAL STRUCTURETRADITIONAL STRUCTURE

S a les C u stom erS erv ice

O p era tion s

G en era l M an agerT yp e title h ere

New StructureNew Structure

R e g io n a l S a le sD ire c to rs

R e g io n a l S a le sM a n a g e rs

S a le s

S a le s A c c o u n tM a n a g e m e n t

L o c a l S ite s

R e g io n a l F a c ilitie s

O p e ra tio n s

Emerging StructureEmerging Structure

New StructureNew Structure

R e g io n a l S a le sD ire c to rs

R e g io n a l S a le sM a n a g e rs

S a le s

S a le s A c c o u n tM a n a g e m e n t

L o c a l S ite s

R e g io n a l F a c ilitie s

O p e ra tio n s

New Manufacturing and Delivery New Manufacturing and Delivery ModelModel

Large VHS Orders Large VHS Orders Peak loadsPeak loads

Houston

San Francisco

Portland

Seattle

Raleigh

Atlanta

Orlando

Tampa

ALLIED VAUGHN REGIONAL OPERATIONS ALLIED VAUGHN REGIONAL OPERATIONS CONFIGURATIONCONFIGURATION

Minneapolis

Milwaukee

ElkGrove

Livonia

Washington D.C.

NORTHEAST REGIONNORTHWEST REGION

SOUTHWEST REGION SOUTHEAST REGION

Denver

Phoenix

Dallas

Houston

New Manufacturing and Delivery New Manufacturing and Delivery ModelModel

Large VHS Orders Large VHS Orders Peak loadsPeak loads Centralized ManufacturingCentralized Manufacturing

– Optical DiscOptical Disc– CD and DVDCD and DVD– FulfillmentFulfillment

New Growth ProductsNew Growth Products

0

50000000

100000000

150000000

200000000

250000000

300000000

350000000

2002 2003 2004 2005 2006

Units Sold

US DVD Duplication MarketUS DVD Duplication Market

Operational StructureOperational Structure

R egional G M - E GV R egional G M - D allas

R eg ional G M - A tlan ta R eg ional G M - P ortland

V P of O perations

S an F rancisco

P hoen ix

H ouston

D enver

M inneapo lis

M ilw uakee

D etro it

R aleigh

D C M etro

T am pa

O rlando

L ocal G eneralM anager

V P of L ocalO perations

What does this all mean?What does this all mean?

Have questions?Have questions?