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©2010 Static Control Components, Inc. All rights reserved worldwide. The stylized S, Static Control and Odyssey are registered trademarks of Static Control Components, Inc. All other brand or product names are trademarks or registered trademarks of their respective companies.

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Static Control ZhuhaiTelephone: +86 756 3320300 4008 838 233 Fax: +86 756 3321700E-Mail: [email protected]

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Over 14,000 Products

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©2010 Static Control Components, Inc. All rights reserved worldwide. The stylized S, Static Control and Odyssey are registered trademarks of Static Control Components, Inc. All other brand or product names are trademarks or registered trademarks of their respective companies.

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Static Control ZhuhaiTelephone: +86 756 3320300 4008 838 233 Fax: +86 756 3321700E-Mail: [email protected]

Static Control Hong KongTelephone: +852 2427 6011Fax: +852 2427 6677E-Mail: [email protected]

World leader in printer cartridge remanufacturing technology and expert training.

Over 14,000 Products

Products Now Ship Quickly from OurZhuhai Distribution Center

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December 2010 | www.recyclingtimes.com.cn2

All rights reserved. © 2010 by Recycling Times Media Corporation. The contents are not be to copied or republished without official written consent. The editorial content does not represent official positions of Recycling Times Media Corporation.

RecyclingTimes

Acquisition has become a hot topic again. Recently MBP Group

announced the acquisition of Spanish compatible cartridge producer GTA Sistemas.

Last December, NER Data Products sold the NER Imaging Supplies division and its wholly owned subsidiary Image1 to Clover Technologies Group. This year in April, Print-Rite acquired a major controlling stake in AEG Photoconductor (Shanghai) Co. Ltd. (APS) and Media Sciences acquired Master Ink in late April. Then Armor Group bought Wecare4 in May. The majority ownership of Clover Technologies Group and West Point Products was transferred to Golden Gate Capital in June. Future Graphics Imaging Corporation merged into its parent corporation, Mitsubishi Kagaku Imaging Corporation in July. On October 25, 2010, German KMP PrintTechnik AG acquired Intercopy Holding GmbH. Clover Holdings acquired Environmental Reclamation Services (ERS) in mid-November and Luke Entertainment acquired AccuBrite.

We can see from the above mentioned cases that there were only two Chinese aftermarket players involved in those acquisitions. With over 500 companies in China, how can the number of acquisitions be so low? Apart from imperfect enterprise management, core technology and private owned brands, some excellent companies fail to realize acquisition because they are not familiar with the processes of mergers and acquisitions. Or some international buyers are afraid of potential failure during integration posed by culture differences. This brings us back to one word: communication.

Trade shows provide a great platform for the industry to communicate and understand each other better. Zhuhai Expo 2011 is scheduled from October 13 to 15 in Zhuhai. It is estimated that 400 exhibitors and nearly 10,000 visitors will attend the event. Looking forward to meeting you in Zhuhai!

Tony LeePublisher & Managing Director

editorialeditorialwww.recyclingtimes.com.cnPublisher & Managing Director

Tony [email protected]

DirectorsDavid Gibbons

[email protected] Lo

[email protected]

EditorialEditors

Johanna Breen Cherry Xu

[email protected] Yin

[email protected] Jiang

[email protected] Lin

[email protected]

SalesSales Manager

Anna [email protected]

Account ManagerKevin Zhu

[email protected] Executives

Joy [email protected]

Sally [email protected]

Susi [email protected]

Operations and MarketingOperations Manager

Charles [email protected]

Operations AssistantWilliam Feng

[email protected] Manager

Morrow [email protected]

AccountingFeng Li

[email protected]

Published byRecycling Times Media Corporation

Address5F Pacific Insurance Building, Jiuzhou Ave, Zhuhai, China

Tel：+86 (0)756 3220716 Fax：+86 (0)756 3220717

Email：[email protected] Website：www.recyclingtimes.com.cn

RecyclingTimesThe magazine by the industry, for the industry.

Recycling Times Magazine

www.recyclingtimes.com.cn | December 2010 3

Recycling Times Magazine

contentscontentswww.recyclingtimes.com.cn

Industry UpdatesStatic Control comments on Lexmark's denied retrial motion

HP settles with Mipo, SinoTime in inkjet 337 case Lexmark vs Ninestar et al. case over toner scheduled for hearing

FG conducts free STMC training for customers in China

US, UK and Canada issue new rules for air cargo of printer cartridges

Kyocera Mita sieze counterfeit toner cartridges

Media Sciences sells toner business to Katun

MBP Group acquires GTA Sistemas

Sensient opens new plant in Guangzhou

Print-Rite wins Hong Kong Outstanding Corporate Citizenship Award

6

7

8

9

Product ReleaseFG releases Kaleidochrome color chemically produced toner (CPT) and OPCs

Faroudja Toner announced drum for Xerox Docucolor C3535

Apex releases ink and laser chips for HP128A and Dell 21 devices

Chips for Xerox 6121 from Hi & Bestech company

MSE releases solid ink sticks for Xerox Phaser color pirnters

Tianyi Technology offers chips for Samsung

11

12

OEM NewsHP hits one billion cartridge milestone

Xerox works with Close the Loop to recycle returns

15

Features2010: A year in review18

Just a Minute with David GibbonsRe-USE, Re-USE, Re-USE!4

ProfilesSpeed Infotech expands worldwide42

Tech ZoneRemanufacturing the Xerox Phaser 3100 Toner Cartridge44

Market DataVisitor survey at RemaxAsia Expo 2010

OEMs continue to grow in Q3

33 36

OEMs continue to grow in Q3Leading printer manufacturers such as Xerox, Lexmark and Canon have reported their third quarter performance and both demand and sales are up, resulting in higher profits or revenue.

Office3Q FY

3Q 2010 Actual / FY 2010 Projection(Billions of yen)(Billions of yen)

600

900

2 000

3,000Sales Growth rate y/y( ) Local currency base

( )

404 507 433300

600

1,645 2,015 1,984 1,7371,000

2,000( )

03Q09 3Q10 3Q10

0FY09 FY10 FY10 FY10

Previous Current Current( Excluding new consolidation

17 7%750

OP ratioOp.Profit 18.5%150

OP ratio

projection

Growth rate y/y

projection Projection( Excluding new

consolidationeffects )


229 308285 293

17.7%13.9% 14.8%14.1%

250

500

8059 76

15.1%

50

100Growth rate y/y .

229 308285 2930

FY09 FY10 FY10 FY10

8059 760

3Q09 3Q10 3Q10Previous Current Current( E l di Previousprojection

Currentprojection

CurrentProjection

( Excluding new consolidation

effects )


effects )

+20.6%(+27.7%)+25.6% +35.7%

+30 3% +27.7%

14.5%

Static Control comments on Lexmark's denied retrial motion

Lexmark and Static Control have both filed notices of appeal. Static Control seeks substantial damages caused by Lexmark’s anti-competitive behavior and unfair and deceptive trade practices. Lexmark is expected to appeal the same issues which Judge Van Tatenhove rejected in his recent order.

Speed Infotech expands worldwide

OEM NewsRicoh puts fingerprint technology on printers

HP opens design center for printers in Singapore

Fuji Xerox to enter home laser printer market

Canon India launches exclusive brand store

OEM expansion plans for 2011

1516

17

Speed Infotech CEO hinted at plans to launch a new international distribution hub outside of the Chinese mainland. “We have been studying the investment opportunities in Europe and hope to release details about our company expansion projects in the coming months.”

Just a Minute with David GibbonsRecycling Times Magazine


Re-USE, Re-USE, Re-USE!The catchcr y of the remanufacturing industr y for more than

two decades has been all about re-use. In fact in the sustainable

environmental hierarchy (reduce-reuse-recycle) “re-use” is a much

better result than “recycle”.

And now it appears terrorists have picked up on the idea too.

Dubai police found explosives inside a printer cartridge onboard a

cargo plane from Yemen (see photo). Intelligence experts say they

bear the hallmark of al-Qaeda and represent a shif t in terrorist

tactics to commercial targets.

Yemeni forces ar rested a woman af ter sur rounding a house

in the capital Sanaa. The news of the arrest came as the British

Government confirmed that the sophisticated bombs—contained

inside the printer cartr idges —were

designed to explode mid-air on their

way to the United States.

According to various news sources,

the cartr idge bombs contained the

same powerful explosive used by the

so-called Underpants Bomber in the

alleged plot to blow up a plane over

Detroit on Christmas Day last year.

So is that where all the empties are

going?

In all seriousness though, could the

shipping of empty printer cartr idges

to remanufacturers —needing to “re-

use” them as pr inter car tr idges — be

threatened? Will this alleged terrorist

p lot now hold up the supply of empties because they could

possibly be bombs?

The real challenge is to convince governments that the granulating

and stripping down of cartridges and recycling them into plastic

rulers and park benches is the last stage of

the process—reserved only for those parts of

cartridges which cannot be used again.

But that argument has become a l l the

more dif f icult now, as governments may

order ALL used printer cartr idges to be

granulated so that they do not end up in

the wrong hands.

Industry UpdatesRecycling Times Magazine


Static Control comments on Lexmark's denied retrial motion

HP settles with Mipo, SinoTime in inkjet 337 case

L exmark International Inc.’s motion for

a new infringement trial was denied on

October 28, 2010. Lexmark sought to

reverse the June 2007 jury verdict which found

that Static Control did not induce infringement

of Lexmark’s patents, and that Static Control’s

customers did not infringe Lexmark’s patents.

In a 37-page ruling, U.S. District Court Judge

Gregory Van Tatenhove rejected Lexmark’s

arguments, and upheld the jury verdict in favor

of Static Control in its entirety.

Edwin Swartz, president of Static Control,

was pleased with the ruling. “When Lexmark

sued us on New Year’s Eve, eight years ago, I

told the press that this was round one in a 12

round fight,” Mr. Swartz said. “Well now we are

at the end of round 12, and Static Control is still

standing.”

Mr. Swartz said that the jury and judge’s verdict

were good for the remanufacturing industry

and good for consumers. “The court’s decisions

encourage competition which gives consumers a

wider range of choices at better prices. Lexmark

was trying to exclude competitive chips which

meant higher prices in the market,” said Mr.

Swartz.

Lexmark and Stat ic Control have both

filed notices of appeal. Static Control seeks

substantial damages caused by Lexmark’s anti-

competitive behavior and unfair and deceptive

trade practices. Lexmark is expected to appeal

the same issues which Judge Van Tatenhove

rejected in his recent order.

H ewlet t -Packard Co. has asked

an administrative law judge to

dismiss Mipo America Ltd. and

SinoTime Technologies Inc. from a Section 337

investigation over ink cartridge patents, saying it

has reached settlements with the companies.

HP and its Houston unit Hewlett-Packard

Development Co. LP filed motions in the US

International Trade Commission (USITC), asking

Administrative Law Judge Robert K. Rogers

Jr. to cease its investigation of Mipo America

and SinoTime Technologies as it has reached a

settlement with them.

The USITC began investigating the companies

alongside several others in relation to a 337

lawsuit alleging the use of patent infringing and

potentially stolen HP parts.

Administrative Law Judge Robert Rogers Jr.

said of both cases: “I find that termination of

this investigation does not impose any undue

burdens on the public health and welfare,

competitive conditions in the United States

economy, the production of like or directly

competitive articles in the United States, and

United States consumers.”

Therefore, he decided to grant both motions,

though this is only an Initial Determination,

and is subject to review by the Commission.

The terms of the settlements are currently

confidential.

Hongwei Shang , the a t tor ney

represent ing Mipo America and

SinoTime also refused to offer details

on the settlements.

H o w e v e r, S h a n g d i d s a y t h e

agreements were in no way connected

to recent unsuccessful attempts by

other Mipo entities to exit the case via

consent order.

I n S e p t e m b e r J u d g e R o g e r s

denied the exit attempt by the Mipo

Technology units, saying the consent

order should have contained a mention that the

ITC has subject matter jurisdiction in addition to

other kinds of jurisdiction. It also should have

declared that Mipo Technology expressly waived

all its rights to seek judicial review or otherwise

contest the validity of the consent order,

according to the judge.

The order additionally left out any reference to

the stipulation being “for settlement purposes,”

Judge Rogers said.

The Mipo Technology units' latest termination

motion, lodged on October 19, remedied the

omissions, according to the companies.

The ITC opened a review in June into whether

the Mipo entities, SinoTime and others infringed

the HP patents-in-suit, which cover thermal

inkjet printing devices and specifically inkjet

cartridges that include a printhead.

The commission voted to take on the case after

HP complained in May that the respondents

were importing and selling cartridges with

printheads and other components that infringed

the asserted patents.

HP filed a parallel suit May 20 in the US District

Court for the Northern District of California

against the same companies over the same six

patents.

U n d e r H P ' s c l a i m e d i n v e n t i o n s , a

microcomputer activates ink jets on the moving

printhead to appropriate locations, causing

the printhead to eject ink drops onto the

printing surface and to form desired images and

characters.

The patents-in-suit are U.S. Patent Numbers

6,234,598; 6,309,053; 6,398,347; 6,412,917;

6,481,817; and 6,402,279



T he judge ALJ Charneski announced two orders for the schedule

of Lexmark against Ninestar and some 20 companies over toner

patents. March 12, 2012 was set as the target date (which is 17

months after the institution of the investigation). The judge further indicated

that the Initial Determination on violation shall be due November 10, 2011.

In another order, the judge set the procedural schedule for the

investigation, including an August 15, 2011 start date for the evidentiary

hearing.

This case was filed on an August 20, 2010 following a complaint by

Lexmark International, Inc. of Lexington, Kentucky alleging violation

of Section 337 in the importation into the US and sale of certain toner

cartridges and components thereof which infringe certain claims in US

patent numbers. 5,337,032, 5,634,169, 5,758,233, 5,768,661, 5,802,432,

5,875,378, 6,009,291, 6,078,771, 6,397,015, 6,459,876, 6,816,692,

6,871,031, 7,139,510, 7,233,760, and 7,305,204.

Lexmark vs Ninestar et al. case over toner scheduled for hearing

New security rules banning printer cartridges from USNew US security rules are in place banning all cargo from Yemen and

Somalia and prohibiting toner and ink cartridges weighing more than

one pound from passenger flights.

The new rules are a direct response to the thwarted terror plot that

could have taken down two cargo planes over the US last month.

Terrorists in Yemen had hidden two powerful bombs inside printers and

shipped them to addresses in Chicago.

As well as the bans, high risk cargo will no longer be allowed to fly on

passenger planes. Until now, the US has required that high risk cargo be

screened before it's loaded onto US-bound passenger planes.

UK to bar unaccompanied air cargo from Yemen, SomaliaUK also barred unaccompanied air cargo from Yemen, Somalia after ink

cartridge bomb. From November 9, 2010, air passengers flying from UK

airports will be banned from carrying larger printer cartridges in their

hand baggage for at least a month. Sending larger printer cartridges by

air cargo out of or into the UK will also be prohibited, unless the sender

ships through a government-approved shipper.

The banning of larger printer cartridges – any cartridges weighing over

500 grams (17.6 ounces) – in hand luggage and air cargo will be in place

for a month initially.

Canada creates new security rules Canada announced several new aviation security rules, including

restrictions involving large office-sized printer toner cartridges, just days

after it banned all air cargo originating from Yemen.

Passengers are no longer allowed to take large printer toner cartridges

in checked bags on any flights departing Canadian airports, or in carry-

on bags on any outbound flights from Canada to the US, Transport

Minister Chuck Strahl announced November 8, 2010.

Passengers are still allowed to carry smaller toner cartridges, such as

those used in home printers. The new security measures were effective

as of November 8, 2010.

US, UK and Canada issue new rules for air cargo of printer cartridges

F uture Graphics (FG) demonstrated its commitment to

technical support and training in China by providing free

STMC training for its customers.

The training session was conducted by Mr. Will Niederstadt, a

20-year industry veteran, and took place from August 23 through

September 1.

Six different Chinese businesses sent a total of 50 representatives

to achieve certification. Participants included Beijing Laser Hi-

Technology Co. Ltd.; Jie Sheng (Zhuhai) Technology Co. Ltd.; Pacific

Plastic Product (ShenZhen) Ltd.; Zhuhai TopColor Image Products

Inc.; Zhuhai Top-Print Technology Co. Ltd. and Zhuhai Kolion Tech.

Co. Ltd. - Jet Rise.

Mr. Dick Yu, General Manager, Future Graphics China, said, “Since

STMC certification is viewed favorably around the globe, it’s an

important step in the development of the remanufacturing and

recycling industry. We are happy to help our customers gain this

certification with greater efficiency.”

Mr. Du of Beijing Laser agreed. “STMC certification provides a

more systematic method to regulate quality,” he added. “Now that

we have professional testing standards, we have clear guidelines in

which to conduct quality management.”

For more information about STMC, contact [email protected] or go

to http://www.i-itc.org/standards.htm.

FG conducts free STMC training for customers in China



M edia Sciences International,

Inc. announced the sale of

its toner business to Katun

Corporation, a Monomoy Capital Partners

portfolio company.

On November 8, 2010, Media Sciences

Inc. , a subsidiar y of the Media Sciences

International, Inc., entered into an asset

purchase agreement (APA) wi th K atun

Corporation and one of its subsidiaries.

Under the terms of the APA, Katun purchased

assets used in the seller's toner business,

inc lud ing , inventor y, f i xed assets , and

intangibles (including the seller's business

name and trademarks) for approximately $11

million (the amount is subject to adjustment

based on the value of the seller's inventory

as finally determined within 30 days from

closing). Katun also assumed the liability for

all of seller's unfulfilled purchase orders, for

a defined amount for returns and allowances,

and for any post-closing liabilities under all

assigned customer and vendor contracts

arising out of the seller's toner business, but

not for any of seller's other liabilities.

At the same time, Katun and the seller also

entered into a master distribution agreement

by which the parties agreed that Katun will

be the exclusive worldwide distributor of

the seller's solid ink products for use in

Xerox color printers for a period of 3 years.

The part ies a lso entered into a l icense

agreement allowing the seller and its affiliates

to continue using its business name and

websites for up to two years.

The company also announced changes in its

leadership team. Michael Levin said the sale was

“the right decision for all constituents including

shareholders, customers, employees and

vendors”. He expects that the MSI business will

“thrive within the Katun infrastructure".

The company intends to host a conference call at

a later date to discuss its future opportunities.

Media Sciences sells toner business to Katun

R ecently, MBP Group has bought the

Spanish company GTA Sistemas.

Through this move i t a ims to

strengthen its position on an international

level and get closer to its Southern European

partners.

GTA Sistemas is a major player in Spain. With

18 years of existence, its distribution network

will be of great benefit to MBP Group.

Located between Nantes and Tangier, the new

entity of the group will allow MBP to optimize

its commercial position. The company states

that its bigger size and new competences

will help MBP Group to take up tomorrow’s

challenges.

After the acquisition, the GTA team will be

kept as well as the Ocean range of products

which is marketed by the company.

MBP has a strong export position and intends

to continue its international development

after the creation of a production plant in

Tangiers in 2008. MBP Group is now present

in two continents (Africa and Europe), in three

countries (France, Morocco and Spain) and has

about 160 employees.

GTA Sistemas was founded in 1992 in

Barcelona developing its recycling activity

together with the sale of compatible cartridges.

GTA Sistemas employs 30 people and had a

turnover of 5 million Euros in 2009.

MBP Group acquires GTA Sistemas

K yocera Mita has become the latest

OEM to crack down on counterfeit

cartridges, taking out an injunction

against a firm caught importing counterfeit

toner cassettes into Ireland, according to a

report by Yahoo.

The counterfeit haul has been valued at over

£430,000 by Kyocera Mita and the importing

company, which has not been named, has been

ordered to pay the vendor’s legal costs.

The case was brought to the vendor ’s

attention by a Dublin-based partner who had

concerns over the authenticity of the products

and handed them over to the vendor.

Kyocera Mita tested a batch, confirmed they

were not genuine and has now issued the firm

with an injunction ordering it to hand over the

counterfeit goods.

Jun Okumura, general manager of Kyocera

Mita, said taking action against counterfeiters

was always a priority for the firm.

He said: “ We wil l not tolerate trade in

counterfeit products, and will rigorously

pursue all parties in the distribution chain

to protect our intellectual property rights.

We see this as an important part of our role

of safeguarding the revenues of our channel

partners who could otherwise see unfair and

unlawful competition from sales of counterfeit

products.”

Kyocera Mita sieze counterfeit toner cartridges



S ensient Technologies Corporation

has announced the official opening

of i t s new plant in Guangzhou,

China. The new facility includes an office and

laboratory building and production areas

for both food and non-food products. With

the addition of this facility in Guangzhou,

Sensient now has a presence in five locations

in China. Around the world, Sensient has

over 70 locations that provide specialized

flavor and color applications in 30 countries,

selling to more than 150 nations.

The new Guangzhou location contains

l a b o r a t o r i e s f o r r e s e a r c h , a p p l i c a t i o n

deve lopment and qua l i t y cont ro l . The

facility will significantly enhance Sensient's

capability to produce food and beverage

flavors and colors as well as fragrances and

pharmaceutical coatings.

At the official opening, Kenneth P. Manning,

Chairman and CEO of Sensient Technologies

Corporat ion, sa id, "This manufactur ing

facility is a key part of our global strategy and

it strengthens Sensient's presence in China.

The Guangzhou location positions Sensient

for growth in one of the most dynamic

economies in the world. It greatly increases

our production capabilities with state-of-

the-ar t equipment and new process ing

technologies."

Other Sensient locations in China include

a plant for processing dehydrated flavors in

Qingdao, a technical center and sales offices

in Shanghai, and offices and laboratories in

Beijing and Hong Kong.

Sensient also announced its financial report

for the three months ended September 30,

2010. Consolidated revenue for the third

quarter of 2010 reached an all-time record

level of $340.9 million, an increase of 12.4%

compared to the same period of last year.

Sensient opens new plant in Guangzhou

P rint-Rite Holdings Ltd. has won the

silver award in the manufacturing

sector category of the Hong Kong

Outstanding Corporate Citizenship Award 2010.

The award presentation ceremony was held on

November 8 and officiated by Mr. Henry Tang,

Chief Secretary for Administration of the Hong

Kong Special Administrative Region.

The Hong Kong Outstanding Corporate

Citizenship Award is one of the activities of "The

Hong Kong Corporate Citizenship Program”

organized by the Hong Kong Productivity Council.

The aim of the program is to promote the awareness

of corporate citizenship among local enterprises

and to encourage enterprises to establish their

civic responsibility values for incorporation in their

business strategies. Such concepts can be further

promulgated to employees, their families, customers

and the public.

Print-Rite was proud to receive this award

in recognition of its achievements in the

implementation and promotion of corporate

social responsibility. The company pledges to

continue to invest resources in environmental

protection, product safety, staff welfare and

activities supporting the community as well as to

provide customers with quality products and best

services through continuous innovations.

"We are extremely delighted to receive this

prestigious award. We will continue to put more

resources in corporate social responsibility to

support the society and the community as well

as to protect the environment," said Mr. Arnald

Ho, Founder and Chairman of Print-Rite Holdings

Limited.

Print-Rite wins Hong Kong Outstanding Corporate Citizenship Award

▲ Award presentation ceremony

Product ReleaseRecycling Times Magazine


A pex believes it has released the

first-to-market replacement chips

for the HP 128A series color

toner cartridges and Dell 21 series inkjet

cartridges.

In September 2010 , Hewle t t Packard

released the Laserjet Pro CM1415fn/fnw, a

new series of color laser MFPs, which have

aroused great attention for their compact

design, advanced functions and great price-

value rat io. Based on a well -establ ished

technology platform for HP chips, Apex

became, according to the technical staff

of Apex, “the first one among the industry

to launch the replacement chips with only

one month’s efforts”. These replacement

chips have comparable functions to OEM

chips, featuring a unique serial number and

firmware resistance.

This series of chips is designed with ASIC

technology, compatible

wi th Apex ’s Unismart

system. The ASIC design

g u a r a n t e e s t h e c h i p s

with low driving voltage,

low power consumption,

high stability, and high

communication speed.

Cus tomers cou ld use

these together with the

c o m p a n y ’ s U n i s m a r t

system to achieve flexibility and universality.

Also released are replacement chips for

the Dell21 series, for use with Dell V313/

V313W/P513W, DellV515/515W/P713/V715W

series printers. These are fully emulated and

verified by repeated tests, with functions

comparative to OEM. The chips in this series

have been built with Apex’s proprietary due-

core technology, which allows the cartridges

to print more than 20% than the OEMs’.

In addition, Apex released new inkjet chips

for the Canon iPF510 Series and new laser

chips for Ricoh C220 and Lexmark X203/204,

OKIC5600/5700/5650/5750/5800/5900/5850/5

950 cartridges.

For more information about newly released

chips, please visit www.apexmic.com, or

contact Apex’s account manager.

Apex releases ink and laser chips for HP128A and Dell 21 devices

F aroudja Toner has released a new drum for the Xerox

Docucolor C3535, it was announced.

“We came out with the toner four months ago, and it has

been a steady seller.” explained marketing director Tim Farrell. “So

we’re pleased to now offer the drum.”

The Faroudja drum for the Xerox Docucolor C3535 is without

gears, and is sold in any quantity the customer requests. Special

discounts are available if the product is bought in cases of 50.

The company says that recycling the drum unit is not difficult,

and complete instructions are available. “We think this is a good

opportunity, as the OEM drum units are over $200 and we can give

you a really low price on the drum” added Farrell.

Faroudja also released color toner in bags for the Samsung

CLP 315 in November. Ten kilogram (22 pound) bags are sold for

black, cyan, yellow

and magenta , and

c a n b e p u r c h a s e d

i n d i v i d u a l l y o r i n

multiple quantities.

Faroudja Toner announced drum for Xerox Docucolor C3535

• Contact Faroudja Toner Tel: +1 650-593-3862Fax: +1 650-593-3817Website: www.faroudjatoner.com.

F uture Graphics has begun shipping its world-renowned

color chemically-produced toner (CPT) and color OPCs

under the Kaleidochrome brand.

FG said the Kaleidochrome brand features the same high quality

CPT and color OPCs that customers have always received from FG,

sold under the same item number. There is no reason to requalify

because i t i s the same

product, producing the

same high yield; the same

superior fusing and the

same OEM-like print quality.

F G s h i p s f r o m t h r e e

North American and nine

international distribution

c e n t e r s . F o r m o r e

information, please contact

FG.

FG releases Kaleidochrome color chemically produced toner (CPT) and OPCs

Product ReleaseRecycling Times Magazine


H i & Bestech company has released chips for Xerox Phaser

6121color laser printer cartridges. “Thanks to our R&D team

special design, our chips are working worldwide” said Alvin

Hsu, sales director of Hi & Bestech Company.

Xerox Phaser 6121 printers’ specifications:

• Print Speed : Color up to 5 ppm and Black up to 19 ppm

• First-page-out time: 13 seconds monochrome and 22 seconds color

• Max. resolution :1,200 x 600 dpi x 1 bit

• Paper input: Standard: 200 sheet multi manual tray

• Monthly duty cycle: 2,600 pages

Hsu continues, “As an industry

partner for chip solutions, our

team is composed of qualified

engineers with more than 20

years on chip solutions and

production. Hi & Bestech chips

are full emulation with 100%

functionality but unique circuit

and firmware design from OEM

chips for Intellectual Property

protection and are fully RoHS

compliant”.

For more information, please

contact Hi& Bestech.

S henzhen Tianyi Technology has

announced the release of chips for

Samsung ML1911/2526/2581/651/4601/

4623 printers.

The product code for the newly-released

product is SMAR-S1911 and it is intended for use

in the MLT-D1053S/D1053L cartridge. The print

yield for this dedicated chip is 2,500 pages (Black)

which is the high yield of Samsung’s cartridge in

accordance with ISO/IEC 19752.

“ We are excited to supply the f irst - to-

market chips SMAR-S1911 for Samsung

ML1911/2526/2581/651/4601/4623 printers to the re-

industry and support recyclers all over the world”,

said Jacky Chen from Shenzhen Tianyi Technology.

Samsung ML1911/2526/2581/651/4601/4623

series printers are for everyday document

production in the office. They are designed

to meet all the needs of the standard office,

whether that is black & white, single-sided or

double-sided, single sheet output or booklet.

The devices enjoy a first page out time of less

than 10 seconds and monthly duty cycler of up

to 10,000 pages.

About Tianyi TechnologyShenzhen Tianyi Technology Co., Ltd is

specialized in R&D, sales and marketing of chips

for cartridges. It has been compliant with ISO

9001 quality standards since 2002.

Tianyi Technology offers chips for Samsung

M icro Solutions Enterprises has announced the

release of a complete line of solid ink sticks

for Xerox Phaser color printers. MSE is now

offering all of the most popular models of compatible solid inks

for models such as the Xerox Phaser 8400/8500/8560 and more.

Luke Goldberg, SVP at MSE Global says: “These products are

a great way to expand your color offering for these solid ink

printers. Solid inks offer great margin and revenue opportunities

for resellers seeking quality alternatives to high priced OEM

consumables.”

MSE is currently offering these in generic packaging due to the

custom requirements of this product. As volumes dictate, MSE

plans to expand the packaging options available for this product.

MSE utilized patent pending SCS technology to release toner

cartridges for the very popular CP3525 printers (CE250A/CE252A)

last month.

MSE has multiple certifications and accreditations including

ISO 9001 and 14001. As well as its engineering prowess, MSE also

prides itself on offering the highest levels of after-sales support to

its dealers through its consultative sales and marketing programs.

For more information, please go to the webisite www.mse.com

or call +1 818-407-7500.

MSE releases solid ink sticks for Xerox Phaser color pirnters

• Contact Hi & Bestech Webisite:www.tonerchips.comE-mail: [email protected]

• Contact Tianyi Technology Tel: +86 134 807 381 01Email: [email protected]: www.sz-tykj.com

Chips for Xerox 6121 from Hi & Bestech company

▲ CHIP for Xerox 6121

OEM NewsRecycling Times Magazine


H P a n n o u n c e d t h a t i t h a s

manufactured one b i l l ion ink

cartridges with recycled plastic

supplied from its closed loop cartridge and

recycled water bottles recycling program.

Along with hitting the big one billion milestone,

HP also announced plans to continue to

decrease its environmental impact by achieving

new goals, implementing more eff icient

programs and creating ways for the customer to

continue to be involved.

Having already collected approximately 160

million HP ink cartridges and 1.3 billion plastic

bottles, the company has pledged to use a total

of 100 million pounds of recycled plastic in

printing products by 2011 (over a four year span

starting in 2007).

According to HP, it has managed to reduce its

carbon footprint by an estimated 22%, fossil fuel

consumption by 50% and total water use by 69%

when compared to using virgin (new) plastics.

Beyond that, based on a new streamlined

recycling procedure started this year, the

reduction in total water use and carbon footprint

is an estimated 89% and 33%, respectively.

HP recently introduced the HP Envy e-All-

in-One, its first PVC-free printer and the HP

Deskjet 3050 all-in-one, made from 35% recycled

plastic.

HP hits one billion cartridge milestone

X erox Corporation launched a new

return and recycling program to

return toner and supplies and expand

the company’s effort to keep billions of pounds

of waste out of landfills.

"Our role at Close the Loop is to make the

returns process that much simpler so more

customers join in on the effort. Working

together with Xerox we push the goal of zero

waste forward to minimize our impact on the

environment.”

Xerox is partnering with Close the Loop, one of

the world’s largest recyclers of imaging supplies.

Close the Loop will collect customers’ returns

and manage the recycling on behalf of Xerox

using a patented material separation process that

recovers used materials for reuse in new printer

cartridges and other products.

In an initiative similar to Xerox’s popular

Eco Box program in Europe, customers in the

United States will place used supplies into a

collection box. When the box is full, customers

print a free-of-charge shipping label and send

the box to Close the Loop. Instructions are

printed on the boxes, which are now available

in the United States. Customers can order

the boxes through the redesigned return and

recycling website.

"During the past 12 years, our collaboration

with customers has kept more than 143 million

pounds of cartridges, bottles, and waste toner out

of landfills,” said Patricia Calkins, vice president,

Sustainability, Environment, Health & Safety.

Xerox works with Close the Loop to recycle returns

R icoh has put biometric authentication

technology on its latest multifunction

printers as part of a new strategic

alliance with Equitrac and BioStore.

They help customers securely release sensitive

information from its printers and MFPs. The

combination of technologies creates a secure

environment within which only the allocated user's

fingerprint can release documents; enhancing the

overall document security of an organization.

Equitrac software provides customers with the

tools needed to efficiently monitor, manage and

recover documents.

It works in tandem with BioStore's highly

secure, centralized Identity Management

System, allowing a single token of identity to

be used across separate applications within an

organization.

"MFPs are gateways to an organization’s network

and if not properly secured can lead to breaches in

data security that could inflict brutal implications,”

explains Alan Mason, managing director, Ricoh

Ireland.

"The partnership with Equitrac and BioStore will

allow us to deliver and support customers seeking

biometric authentication systems, and those who

want to incorporate this innovative technology into

new or existing Ricoh print solutions,” continued

Mason.

Jeroen Kamphuis, Alliance Manager, Equitrac

EMEA explains that fingerprint technology is the

safest possible way to identify the user.

"The replacement of cards and wasted paper

is also costly for schools, and by incorporating

biometric technology with their printers, schools

are able to oversee their document workflows

more closely, manage print costs and ensure

that only documents that are truly required are

printed.” said Nigel Walker, director of BioStore.

Ricoh puts fingerprint technology on printers



H P has opened a design center for

its Imaging and Printing Group

in Singapore. The first of its kind,

the new design center will be responsible for

the design and development of inkjet and web

solutions products that will be used worldwide.

With user experience at the core of the design

process, the center will act as the Asia-Pacific

design hub to address the evolving needs

of consumers by designing and developing

appropriate products and innovations.

Vyomesh Joshi, executive vice president of

HP’s Imaging and Printing Group (IPG) said

the opening design center in Singapore would

ensure that the “design process benefits from

a pan-Asian customer perspective”.

T h e I P G D e s i g n C e n t e r

w i l l s e r v e a s t h e h u b f o r

al l regional design activity,

w o r k i n g w i t h H P d e s i g n

teams in India and China to

design and develop future

product lines sold worldwide,

including HP Deskjet printers,

HP Photosmart printers, HP

Officejet printers, HP Officejet

Pro printers and HP Retai l

Publishing Solutions. Many of

HP’s global OEM partners are

based in Asia-Pacific, so locating the design

center in Singapore “helps HP to work more

closely with, and manage these partners,

resulting in higher quality design, execution

and customer experiences”, according to the

company.

The HP IPG design team has a long history

in designing and developing industry-leading

products. One of the first products developed

by the Singapore-based design team was the

recently launched HP Officejet Pro line-up of

Web-connected and ePrint-enabled printers

for small businesses.

“HP’s des ign phi losophy i s rooted in

creating new user experiences. Our Singapore

design team is purpose built to tap into the

unique design requirements of Asia-Pacific

customers and to design and develop printing

solutions for customers in Asia-Pacific and

around the world,” said Sean Carney, Director,

Design, Imaging and Printing Group, HP.

HP opens design center for printers in Singapore

F uji Xerox's printer and multifunction

business has traditionally concentrated

on devices aimed at mid-range and high-

end markets, but in a new move Fuji Xerox will

focus more on the home laser printer market.

James Henderson, Fuji Xerox President of

printer channels, said:"We are bringing high-end

technology to low-end products. We are bringing

the world's best technology to everyone."

However, he also acknowledged that the market

was very crowded, with Hewlett-Packard and

Samsung the leaders in the below $400 printer

market.

He added that he was confident about the self-

scanning LED (SLED) printhead that simplifies

the mechanism and saves space, as well as the

eco-toning technology his company would

introduce to customers.

The SLED is so much smaller than conventional

laser mechanisms that it frees up enough room

for an additional paper tray within the same

device outline.

Besides the SLED, Fuji Xerox has announced

that it will use its EA-Eco toner technology in its

new laser printer lines. This technology reduces

carbon dioxide emissions during manufacturing

and use, and requires less toner powder in

printing.

Fuji Xerox has released some lower-end models

such as the WorkCentre 3119 and the Phaser

3155, and it wants to invest in this market.

Henderson said key features for the segment

include ease of use, plug-and-play operation and

networking capabilities. Fuji Xerox will compete

on price as well as product.

He also mentioned that the overall laser printer

market was around eight million printers, with

70-80 per cent in small businesses and SOHO. He

explained that despite the fierce competition, Fuji

Xerox was confident about its new technology as

well as its 50-year-old direct sales and six-year-old

channel sales systems.

According to Fuji Xerox, the company will

release six new models of full-color digital

multifunction device for office use on January 17,

2011: three models in the ApeosPort-IV series and

three models in the DocuCentre-IV series.

Fuji Xerox to enter home laser printer market

▲ James Henderson, Fuji Xerox President of printer channels.



O KI establishes printer

sales office in RussiaOKI Data Corporation has established

a sales office in Russia. The company plans to

enhance its presence in the region by reinforcing its

relationship with business partners and customers

and in turn, strengthen its position in the Russian

printer market in fiscal year 2011.

The new Russian sales office will provide

competitive products, focus on delivering high

quality customer service and after-sales care,

developing stronger business relationships and

expanding its distribution channel.

Harushige Sugimoto, president of OKI, says:

"The new Russian sales office represents a great

opportunity to increase our presence in this

important market. By offering excellent customer

service and tailored solutions for businesses we can

continue to demonstrate OKI's commitment to our

customers whilst expanding our business in the

emerging market."

The company plans to achieve further expansion

by enhancing its unique service offerings such as

managed print services as well as support programs

for dealers and partners, targeting not only existing

sectors but also corporate and government markets.

Dell expands China operationsDell will establish its second operations base in

China's Sichuan province. The site, West Chengdu

High-Tech Park, will run manufacturing, sales and

services operations to complement Dell's robust

growth in the western Chinese market.

Additionally, Dell will hire 500 new staff when it

opens an accompanying office at its flagship Xiamen

base later this year. China is massive to Dell, coming

second only to the US in terms of its revenue.

Between 2000 and 2010, revenues increased 11-fold,

with a report in the last fiscal quarter showing that in

China sales grew by 52% year-on-year.

"We're planning for the future, and we're excited

about our strategic investments in China that will

help us better serve the region's increasing need for

technology solutions and services," said Michael Dell,

chairman and chief executive officer.

HP projects expansion in PhilippinesHP and the Republic of the Philippines have

signed a letter of intent to explore ways to expand

HP ’ s presence and

investments in this

significant, fast-growing

emerging market.

HP executives hosted

President Aquino III

along with his senior

government leaders for

a tour of its Cupertino,

Californina offices during

the President’s US visit.

"As a global company operating in more than

170 countries, HP seeks to increase its long-term

investments in strong emerging markets such as

the Philippines to support its continued growth in

products and services in the Asia Pacific region,"

said Francesco Serafini, executive vice president,

Emerging Markets, HP. "The Republic of the

Philippines has a vibrant economy with an educated

workforce."

HP, which has maintained a services operation in

the Philippines since 1994, is interested in expanding

this alliance to take advantage of the country’s

strategic location in the Asia Pacific region, its skilled

workforce, and its top-ranked academic and research

institutions.

The Philippine government expects to benefit

from HP’s proposed additional investment in the

global hub as well as the additional employment

opportunities.

OEM expansion plans for 2011

C anon India has made a foray into

the retail space with the launch of

its exclusive brand retail store called

Canon Image Square.

The company plans to roll out five such

stores by December 2010 and 300 stores in the

next three years.

The retail store covers an area of approximately

1,450 sq. ft. and is based on the franchise model.

It aims to be a one-stop destination for people

with imaging needs that affords the company

increased visibility and reach across the country

with a view to boosting sales.

Mr Kensaku Konishi, President and CEO,

Canon India, said, "The first retail store

launched aims at providing our customers with

a one-stop shop for their digital needs that

will result in satisfied and stronger customer

base, thus helping our business substantially.

We have had record growth of 50% in 2010

and expect to close the year at Rs 1,260 crore.

In three years, the new brand retail business

division will contribute 20% of our revenues.”

Canon India has also introduced a new

division called the Brand Retail Business

Division. The division will be responsible

for creating a network of franchises and

maintaining a harmonious, consistent and

contemporary look and feel in all stores. At

present, the division employs about 12 people.

Canon India launches exclusive brand store

FeaturesRecycling Times Magazine


The economic conditions continued to improve broadly throughout

the world. Consumer spending showed signs of recovery thanks to the

effects of such efforts as economic stimulus measures. In the United

States, consumer spending grew steadily despite the unemployment rate

remaining at a relatively high level and other concerns. Europe recorded

growth in exports; the pace of economic recovery remained modest

as financial concerns within the region were not fully eased. The Asian

economies, such as China and India, along with other emerging countries,

recorded stable expansion. The install base and value of worldwide

hardcopy peripherals market is growing.

Recycling Times conducted two lots of market research in 2010, both

of which show that the growth of aftermarket printer supplies industry

is flourishing. Emerging markets are also showing strength for further

development. As well as Western Europe and North America, the markets

of Russia, Kazakhstan, Ukraine, Brazil and India were covered during the

analysis of the markets around the world.

With the rosy picture of the industry, 2010 still witnessed several major

patent infringement lawsuits this year. The first patent infringement case

about toner cartridges was filed on June 28, 2010 when Canon Canon

Inc., Canon U.S.A., Inc. and Canon Virginia, Inc. (collectively, “Canon"

filed a complaint requesting that the USITC (United States International

Trade Commission) commence an investigation pursuant to Section 337,

claiming that Ninestar, its affiliates and a number of American resellers

infringed two of Canon’s patents for laser printer cartridges. Canon also

filed a lawsuit against the same defendants in the District Court for the

Southern District of New York on the same day.

On August 20, 2010, Lexmark International Inc. filed a complaint with the

USITC against 24 manufacturers, importers, distributors and retailers of

replacement toner cartridges, claiming they infringed 21 US patents held

by Lexmark.

Market players in China are adjusting their strategy and circumvent

potential harm of patent infringement.

Another hot topic of the year is acquisition. OEMs often have acquisition

plans on their agenda, while this year aftermarket companies also saw

many successful acquisitions. Clover Technologies Group Inc acquired NER

Imaging Supplies division and its wholly owned printer parts subsidiary

Image1 at the end of last year. In April, Print-Rite officially announced

that it had acquired a major controlling stake in Shanghai based AEG

Photoconductor Co. Ltd (APS) from its German parent company AEG

Elekrofotografie GmbH. Also in April, Media Sciences International Inc.

acquired Master Ink Company, Ltd., a China-based manufacturer of toner

cartridges, inkjet printer cartridges, inkjet refill kits and patented next

generation automatic ink refill systems. All of the assets and subsidies of

Master Ink were bought. The majority ownership of industry titans Clover

Technologies Group and West Point Products transferred to Golden Gate

Capital in June.

We also saw several companies going public this year. Hubei Dinglong

and Shangdong New Beiyang were listed in the Second Board of China’s

stock market. This is definitely good new for many companies in the

aftermarket printer supplies industry that want to use public funding for

R&D or their future plans. Bio-toner also cause some heated discussions

during the year.

Recycling Times would like to review some major events in the industry

during 2010 in this issue.

2010: A year in review2010 has been an eventfully year. In terms of the factors of MPS, rising competitiveness of China’s remanufacturing industry and economic recovery, the industry is thriving. The printer vendors are feeling the challenges posed by aftermarket printer supplies industry. There were also changes of the restructuring of OEM scenario. Several lawsuits were brought against aftermarket players this year by the OEMs in order to safeguard their “territory”. How to circumvent the OEMs’ patents and seize a bigger market share of the market is on the table of every aftermarket player’s agenda.



Stock market

Hubei Dinglong Chemical becomes listed companyHubei Dinglong Chemical Co., Ltd. (Dinglong Chemical) has reached

surged limit several times since it was listed on the Second Board of

Chinese Stock market. On February 11, Dinglong Chemical was listed on

the Shenzhen stock exchange. The stock code is 300054, with the price

set at 30.55 (RMB) per share. On the first day of listing, the share price

is up 8.3%. Dinglong Chemical’s share price has been up for more than

80% since then. The company issued 15,000,000 shares, accounting for

25% of its total shares. (Industry Updates Issue 1)

Suzhou Goldengreen Technologies IPO haltedThe initial public offering (IPO) of Suzhou Goldengreen Technologies

Ltd. (SGT) was stopped at the Second Board level in China’s stock

market. SGT was expecting to be listed on March 17. This contradicts

an announcement made on Jan.22, where China Securities Regulatory

Commission said that Suzhou Goldengreen Technologies Ltd. (SGT)

was approved for IPO on the Second Board in China’s stock market.

On February 24, the State Intellectual Property Office announced on

its website that four patents concerning OPCs were all expired. The

expiration of patents was due to the fact that “The annual fee is not paid

as prescribed”. (Industry Updates Issue 1)

Shangdong New Beiyang listed on China

stock marketOn March 23, Shandong NQew Beiyang Information Technology Co.,

Ltd. (SNBC) was listed on China stock market. It started its initial public

offering (IPO) on March 3. SNBC issues 38 million A shares. As of the

date of 23, the share price of SNBC closed at 36.52 Yuan, and the share

price had been increase for more than 60%. And it is still looking up.

The raised funds will be pooled into two projects: a Special Printers

and Related Products Production Base Construction Project (Annual

Output of 500,000 Units) and an R&D Expansion Project. SNBC is a

leading manufacturer of thermal print heads, printers, and printer

mechanisms for POS, kiosk and label printing applications. (Industry

Updates Issue 1)

Media Sciences delisted from NASDAQMedia Sciences International, Inc. announced that its common

stock would be delisted from the NASDAQ Stock Market and trading

of the Company's common stock wil l be suspended from the

NASDAQ Capital Market effective July 22, 2010. The Company's stock

is being delisted because the stock's bid price is trading under the

$1.00 per share minimum bid price requirement set forth in NASDAQ

Marketplace Rule 5550(a)(2). Its common stock was quoted on the

Pink Sheets later.

Mergers and acquisitions

Print-Rite to acquire major stake in AEG Print-Rite Photoconductor Company Limited (Print-Rite) and AEG

Elektrofotografie GmbH (AEG) reached an agreement where Print-

Rite would acquire a major controlling stake in AEG Photoconductor

(Shanghai) Co. Ltd. (APS) in December 2010.

NER sells Imaging Supplies division to CloverNER Data Products, Inc. announced the sale of the NER Imaging

Supplies division and its wholly owned printer parts subsidiary Image1

to Clover Technologies Group Inc. in last December. The agreement

would transfer all imaging activities including compatible laser toner,

inkjet, narrow and wide impact ribbon production, and printer parts to

Clover.

Print-Rite announces acquisition of APSPrint-Rite officially on April 1 announced that it had acquired a major

controlling stake in Shanghai based AEG Photoconductor Co. Ltd (APS)

from its German parent company AEG Elekrofotografie GmbH. All

companies agreed not to disclose any further information. Following

this acquisition, Print-Rite “shall be the only printing consumables

manufacturer who possesses the production capabilities of all major

components and parts in laser toner cartridges. This transaction brings

a whole new competitive edge to Print-Rite as it is now able to have

control of the complete production process of laser toner cartridges.”

(Industry Updates Issue 2)

Media Sciences acquires Master Ink in ChinaMedia Sciences International, Inc. entered into agreements to acquire

Master Ink Company, Ltd. in late April, a China based manufacturer of

toner cartridges, inkjet printer cartridges, inkjet refill kits and patented,

next generation automatic ink refill systems.

Industry updates



Consideration for the acquisition includes $1.15 million in cash

($250,000 due at closing, the balance with accrued interest due on

the second anniversary of the closing), a 10% override on Master Ink

revenues until the note is repaid and one million shares of Media

Sciences International common stock. (Industry Updates Issue 2)

Golden Gate Acquires Clover Technologies

and West Point ProductsThe majority ownership of Clover Technologies Group and West Point

Products transferred to Golden Gate Capital in June, a private equity investment

firm with approximately $8.0 billion of capital. Both Clover Technologies

Group and West Point Products’ management teams remain in control of their

respective companies and have ongoing resources to improve their reach into

their respective market channels. This venture and potential future acquisitions

signal a maturation of the imaging supplies aftermarket industry that could

mean more consolidation as this market continues to evolve.

Future Graphics merged into parent companyFuture Graphics Imaging Corporation merged into its parent

corporation, Mitsubishi Kagaku Imaging Corporation in July. They also

launched a new website www.fgimaging.com. According to the company,

the website will make customers’ searches for high quality matched

systems much easier.

Armor acquires Wecare4The Armor Group signed an agreement for the acquisition of Wecare4

in May, a European leader in the collection, manufacture and sales of

remanufactured inkjet cartridges.

Wecare4’s acquisition strengthens Armor’s commitment in sustainable

development. Wecare4 have become one of the very rare players

possessing mastery of the industrial process for all three key ranges of

the new generation consumables market: laser, new-built inkjet and

remanufactured inkjet cartridges. (Industry Updates Issue 3)

Clover Holdings acquisition of ERSClover Holdings Inc. announced the acquisition of Environmental

Reclamation Services (ERS) in mid-November. This acquisition

advances Clover’s strategy to be the leader in environmental solutions

and supports the diversification and growth of its collection programs

including laser and inkjet cartridges, cell phones and small electronics.

Germany KMP acquires Intercopy Holding As of 25 October 2010, German KMP PrintTechnik AG has acquired

100% of Intercopy Holding GmbH in Schwalbach am Taunus/

Germany that sells consumables for copiers and multifunctional

printers. This holding consists of Parts Depot GmbH in Germany,

Copymix s.a.r.l. in France and Portugal as well as the manufacturing

company Tekloq s.a.r.l. in Creutzwald France. KMP is now able to

supply customers in France and Portugal through the Copymix

logistics center near Paris. The total turnover of the new company

group is approx. 80 Million Euro.



OEM updatesFinancial status

HPIn March, HP stated that it has revised its previously announced

financial results for its first fiscal quarter ended Jan. 31, 2010, following

developments in litigation involving Electronic Data Systems Corporation

(EDS), a company that HP acquired in August 2008. The revisions reflect an

increase in the amount of the contingency reserve previously established

in connection with the litigation and resulted in a negative impact on HP's

first quarter net earnings of approximately $73 million, or $0.03 per diluted

share. The IPG group revenue was $6.2B, up 4% year-on-year. Supplies

revenue was up 1% over the previous year and up 4% in constant currency

while Commercial printer hardware units up 11% and Consumer printer

hardware units up 18% respectively. Total printer hardware units shipment

increased by 16%, with Color LaserJet units down 1% and Printer-based

MFP units up 6%.

HP’s second fiscal quarter ended April 30, 2010 were announced in May,

with net revenue of $30.8 billion, up 13% from a year earlier including a

favorable currency benefit of four percentage points. Imaging and Printing

Group (IPG) revenue increased 8% to $6.4 billion. Supplies revenue was

up 6%, while Commercial hardware revenue and Consumer hardware

revenue increased 13% and 16%, respectively. Printer unit shipments

increased 9%, with Commercial printer hardware units down 8% and

Consumer printer hardware units up 15%.

XeroxXerox announced today first-quarter 2010 results that include adjusted

earnings per share of 18 cents and $375 million in operating cash flow.

Total first-quarter revenue of $4.7 billion was up 33% including a 3 point

currency benefit. On a pro-forma basis, with ACS in the company’s

2009 results, total revenue grew 5%. Revenue from technology, which

represents the sale of document systems as well as the supplies, technical

service and financing of products, was up 6% including a 3 point currency

benefit. Total install activity for Xerox equipment was up 17%. Revenue

from services grew 3% on a pro-forma basis, including a 1 point currency

benefit, and represents the company’s business process, IT and document

outsourcing offerings.

Xerox Corporation announced second-quarter 2010 results that include

adjusted earnings per share of 24 cents and $678 million in operating cash

flow. The technology segment saw a double-digit install growth in all Color

segments. Also in second quarter, there were 10 products launched in key

segments. The total revenue of the technology segment is $2,555 million.

Revenue from technology represents the sale of document systems as well

as the supplies, technical service and financing of products, and was up 3%

or 4% in constant currency. Xerox says that sales of entry-level printers and

MFPs were up 56% in the second quarter.

CanonThe company earned net profits of ¥56.8bn (US$611m) and January-

March net profit rose 220.2% on-year, largely thanks to a recovery in

demand for printers and digital cameras. While sales volume of the Office

Business Unit of color network digital MFDs increased in major regions

boosted by the introduction of new products and the recovery in demand,

sales volume for laser printers, which suffered flagging sales in the previous

year largely due to an inventory issues, more than doubled, resulting in a

substantial increase of 131%. Consequently, sales for the segment totaled

¥409.1 billion (US $4,399 million), an increase of 8.0% year on year, and

operating profit increased 50.5% to ¥72.1 billion (US $775 million).

April-June net profit rose 333.4% on-year to 67.6 billion yen (778 million

dollars), beating estimates. The first half posted more than triple the net

profit of the same period last year. Net income in the first six months was

up 273.2% at 124.4 billion yen. Despite the significant effects of the strong

yen, second-quarter sales for the Office Business Unit segment totaled

¥521.9 billion (US $5,931 million), growing 31.3% year on year, and ¥931.1

billion (US $10,580 million) for the six months ended June 30, 2010, an

increase of 19.9%. (Market Data Issue 6)

LexmarkLexmark’s first quarter revenue of $1.04 billion increased 10% compared

to the same quarter last year. First quarter revenue declined 3% sequentially

from the fourth quarter of 2009. Gross profit margin was 36.9% versus

35.3% in 2009. Operating expense was $251 million compared to $259

million last year. Operating expense to revenue ratio was 24.1% compared

to 27.4% last year. Operating income margin of 12.8% includes $15 million

pretax for restructuring-related activities. Operating income margin in 2009

of 7.9% included $13 million for pretax restructuring-related activities. Net

earnings for the quarter were $95 million, an increase of 61% compared to

first quarter 2009 net earnings of $59 million.



Lexmark announced financial results for the second quarter of 2010

in July. Second quarter GAAP revenue of $1.03 billion increased 14%

compared to the same quarter last year. Second quarter Printing Solutions

and Services Division (PSSD) revenue of $752 million grew 20% year to

year, Imaging Solutions Division (ISD) revenue of $275 million declined 2%

year to year. (Market Data Issue 6)

Eastman KodakEastman Kodak reported first-quarter earnings from continuing

operations of $119 million in April, or $0.40 per share on a diluted basis,

on sales of $1.933 billion. This represents a $479 million year-over-year

earnings improvement and reflects a previously announced intellectual

property transaction and significantly improved operating results across all

of the company’s key business segments.

Eastman Kodakreported second-quarter results that reflect continued

acceleration of the company’s major growth businesses in commercial and

consumer inkjet, unit growth in the company’s largest digital businesses,

the continued decline of its traditional business, and operational

improvements. Revenue from the company’s digital commercial printing

businesses grew 9% in the second quarter, including 18% growth in

commercial inkjet printing. Consumer inkjet printer and ink revenue grew

by 50% in the second quarter. (Market Data Issue 6)

Mergers and acquisitions

Xerox acquires IBSXerox announced the acquisition of Irish Business Systems (IBS) for

approximately $31 million (€ 21m) in January 20, 2010, expanding Xerox’s

reach right across Ireland. IBS, with eight offices, is a managed print

services provider and the largest independent supplier of digital imaging

and printing solutions in Ireland. This acquisition would increase the

number of people selling Xerox solutions and gain access to more than

11,000 customers across Ireland.

Canon acquires Océ Canon Inc. (trading symbol CAJ) announced a public cash offer for all the

shares of Océ (trading symbol OCE). Canon intends to make an offer of €

8.60 per Share (cum dividend) for 100% of the outstanding Shares of Océ,

representing a premium of 70% over Océ’s closing share price of Friday

13 November 2009 and 137% to the average share price over the last 12

months, this makes the deal worth about 1.1 billion dollars.

Canon buys Tereck Office Solutions Canon U.S.A. acquired the assets of Tereck Office Solutions in May.

Tereck a provider and servicer of copiers, printers and fax machines,

became a wholly owned subsidiary of Canon U.S.A and operate as Canon

Business Solutions -Tereck Inc.

Lexmark acquires Perceptive Software for $280 millionLexmark International Inc. announced buying enterprise content

management software company Perceptive Software Inc. for $280 million

in cash in May. This deal logically extends Lexmark's long-term strategy

of building a portfolio of solutions beyond hardware. (Around the World

Issue 42 Recycling Times-Chinese)

InfoPrint becomes wholly owned subsidiary of RicohInfoPrint Solutions Company announced on the first day of July that it

became a wholly owned subsidiary of Ricoh Company, Ltd., bringing the

three-year joint venture between IBM and Ricoh to its planned completion.

InfoPrint Solutions works for enterprises and print-for-pay customers to

increase revenue and reduce costs within highly complex, digital print

environments.

HP acquires PalmIn July, HP completed its acquisition of Palm Inc. at a price of $5.70 per

share of Palm common stock in cash. The combination gives HP significant

headway into one of technology’s fastest-growth segments with Palm’s

innovative webOS platform and family of smartphones, plus a rich portfolio

of intellectual property from the smartphone pioneer.

Fuji Xerox buys Upstream Print SolutionsFuji Xerox has bought out Australian managed printing services company

Upstream Print Solutions for an undisclosed sum. Upstream would operate

as an autonomous subsidiary of Fuji Xerox Australia and would continue to

focus on managed print solutions in the small to medium business market.

HP buys Fortify SoftwareHP acquired Fortify Software, a privately held software security

assurance company based in San Mateo, California. Terms of the deal

were not disclosed. With the acquisition of Fortify, HP will be able to

accelerate development of this technology to give clients the accuracy and

prioritization they need around security vulnerabilities to build scalable

enterprise application security programs. (OEM News Issue 6 Recycling

Times)

Global Imaging Systems acquires

Georgia Duplicating ProductsGlobal Imaging Systems, a Xerox company, has acquired Georgia

Duplicating Products. The acquisition furthers Global’s strategy of supporting

business customers across the country with an expanding network of office

technology providers. (OEM News Issue 7 Recycling Times)



Market analysisPrinters

India printer industry beating the downturnAccording to International Data Corporation (IDC), the Indian

printer market saw 17.8 lakh units ship (5.5 lakh inkjet AIOs, 4.5 lakh

inkjet SFPs and 7.8 lakh laser printers) during Q3 2009. The current

growth rate is 20% and the market is expected to continue growing at

20% except for inkjet single function devices in Q4, 2009. Major OEMs

in India said Indian market experienced a healthy growth rate despite

the recession and hopes to continue this growth momentum in 2010

as well.

Worldwide hardcopy peripherals market returned

to year-on-year growth in Q4, 2009The worldwide hardcopy peripherals market grew 3.6% year over

year with 34 million units shipped in the fourth quarter of 2009 (4Q09),

according to the International Data Corporation (IDC) Worldwide

Quarterly Hardcopy Peripherals Tracker released in March 2010. Driven

by the continued popularity of multifunction printers (MFPs), this

represents the first year-over-year gain in the market since the second

quarter of 2008. Although shipment values declined 4.6% year over

year to $14.3 billion in 4Q09, this was the slowest rate of decline since

3Q08. (Industry Focus Issue 39 Recycling Times-Chinese)

Inkjet printers market in Russia in 2006-2009Before the global economy fell into trouble due to the financial

crisis, Russia had experienced stable growth in terms of shipments of

new printers and sales of printing supplies for both laser and inkjet

segments. But the growth spree ended in 2008, when the first signs of

the impending crisis loomed. . The shipments in 2008 amounted to 4.5

million printers (laser and inkjet), which is -18% as compared to 2007.

In 2009 (3 more weeks to go to the year's end as of the date of the last

review of the study) the total number of shipped printers (laser and

inkjets) in the country fell abruptly to 3.3 million units, which is -27%

as compared with 2008. (Industry Focus Issue 37 Recycling Times-

Chinese)

The market of printing devices in KazakhstanKazakhstan's market of printing devices used to show great results

before 2008, when the growth rate would be in double digits on year-

to-year basis. In 2008-2009 the market of printing devices (inkjet

and laser stand-alone printers and MFPs) experienced difficulties

because of the financial crisis like everywhere else in the world. In

2006 over 280 000 printers (inkjet/laser printers and MFPs both color

and monochrome) were sold in the country. In 2007 the number of

sold printing devices skyrocketed to over 450K units. In 2008 the

sales rolled down to 248 000 and continued skidding downhill to 204

000 units sold in 2009 (data as of December 2009). Kazakhstan has a

very dynamic market of printer devices with good potential. The local

market, as any other market in Eastern Europe and Central Asia, is

prone to economic fluctuations at a higher extent than, say, in Central

and Western Europe. The printing culture is not mature enough

to keep the demand stable and growing. (Industry Focus Issue 39

Recycling Times-Chinese)

EMEA hardcopy peripherals market to stabilize

through 2010The hardcopy peripherals (HCP) market in EMEA continues to

stabilize and recover in the wake of the widespread negative growth

experienced throughout 2009 as a direct result of the world's first truly

global recession. Looking forward, total HCP shipment volume in the

EMEA region is set to increase by a brisk 7.6% CAGR over the long-

range forecast period (2010-2014). However, this relatively high growth

rate must be seen in the context of an HCP market recovering from

last year's low base of activity when overall HCP shipments contracted

15.1% from the 2008 market peak. IDC forecasts that shipment volume



in EMEA will not reach 2008 levels until 2011, when the market is

expected to total 46.8 million units. (Industry Focus Issue 39 Recycling

Times-Chinese)

Worldwide hardcopy peripherals market sees

year-on-year growth in both units and

shipment value in Q1, 2010The worldwide hardcopy peripherals market grew 9.1% year over

year with 28.7 million units shipped in the first quarter of 2010 (1Q10),

according to the International Data Corporation (IDC) Worldwide

Quarterly Hardcopy Peripherals Tracker. This is the second consecutive

quarter of year-over-year unit growth and the first quarter since early

2008 where hardcopy peripherals shipment value ($13.8 billion) has

also experienced year-over-year growth (7%). (Market Data Issue 4

Recycling Times)

Worldwide hardcopy peripherals market sees

year-on-year growth in both units and

shipment value in Q2, 2010The worldwide hardcopy peripherals market experienced double-

digit growth in both units and shipment value in the second quarter

of 2010. According to the International Data Corporation (IDC)

Worldwide Quarterly Hardcopy Peripherals Tracker, the total market

grew 20% year over year in 2Q10 to 29 million units while shipment

value increased 14% year over year to $13.3 billion. This is the third

consecutive quarter of year-over-year unit growth and the first double-

digit growth for both units and shipment value since early 2000. (Market

Data Issue 7 Recycling Times)

Sizing the worldwide peripherals market:

$149 billion in 2010In total the market will be worth some $149 billion in 2010. Growth

rates have shown the “saxophone shaped” recovery typical of almost

all markets in the recent recession. Figure 1 shows a comparison for

the period from 2008 by quarter, complete with a forecast for the rest

of 2010. At the moment we believe there will be a 3% growth from the

$145 billion spending in 2009. The MPS market-though worth just $7

billion-is almost unique in being a countervailing IT business in the

recession. (Market Data Issue 6 Recycling Times)

US printer import and export by country in 2010Sales of inkjet photo printers jumped 27.5% during the first 6

months of 2010, with America importing far more inkjet printers than

it exports. U.S. sales of inkjet printers were up for 9 of America’s top

10 trade partners that import inkjet printers. China, Japan and Vietnam

make almost 95% of imported laser printers, while Mexico is the largest

export market for U.S. laser printers as of June 2010. (Market Data

Issue 7 Recycling Times)

Printer sales in Taiwan reach 89,528 units in Q2,

2010Sales of SFPs (single-function printers) in Taiwan reached 89,528

units in the second quarter, both a positive year-on-year ( YoY ) and

quarter-on-quarter (QoQ) increase, according to the IDC Taiwan

Quarterly SFP and MFP Tracker report. Shipments of inkjet MFPs

(multifunctional printers) during the period were 178,874 units, both

a two-digit QoQ and YoY increase. (Industry Updates Issue 7 Recycling

Times)

The future of office documentsA series of shif ts has taken place within the office equipment

market. The market is moving from single-function devices to

multifunctionality, from A3 to A4, and from black & white to color.

Color is very attractive as a communication tool, and speed/quality

improvements have been paired with decreasing acquisition costs.

At the same time, however, color adoption has been slow in many

businesses. Over 30% of total survey participants report that their

companies are slowly increasing their color use, but they remain

concerned with cost and speed penalties. Nearly as many respondents

report that color is strongly controlled within their organizations.

Although the acquisition costs for color devices have come down,

some lingering concerns remain. Furthermore, over half of all

respondents believe that supplies costs for color devices are too high.

These issues will likely need to be resolved before more businesses

fully embrace color. (Market Data Issue 7 Recycling Times)

Aftermarket printer supplies market

The Spanish remanufacturing industry (2009-2009)Spanish remanufacturers have adapted in different ways. There

was already a trend among small remanufacturers ("Mom and Pop

companies) to give up cartridge production and focus on selling and

distributing not only cartridges, but office products in general. This



trend has only increased during the second half of 2008. From around

800 companies actively remanufacturing five years ago, at least 150

have turned into dealers or retailers and nearly 100 have disappeared.

2009 is going to be a watershed year. In Spain remanufactured

cartridges market share is still around 10%-15%, so there is still a

lot of room for growth. Remanufactured color cartridges do not

represent more than 8% of all remanufactured cartridges. Only those

companies willing to produce quality products and a good marketing

plan, highlighting the environmental and economic benefits of

remanufactured cartridges will be able to turn this time of crisis into

a profitable opportunity. (Industry Focus Issue 37 Recycling Times-

Chinese)

Inkjet printer supplies market in Russia in 2006-

2009In Russia, the peak period of printer supplies rested on 2008,

when the local economy was still in a good shape. A slight slide was

observed in 2009, when the first signs of economic instability loomed.

Despite the falling sales for printers, the sales of non-original ink

printing supplies were just a fraction lower than in 2008, the reasoning

for it being corporate customers' active switch from original supplies

to alternative ones. In 2010 the slide might continue as the country

will be struggling with the fluctuating economy for a number of years

to come. But we do not expect the fall to continue beyond 2012. Due

to the growing ink-based printers' base, sales of ink supplies will be

hovering within the 14-15 million ranges per year. (Industry Focus


The cartridge remanufacturing industry in BrazilBrazil has a giant cartridge remanufacturing industry, encompassing

more than 10,000 formally registered companies within the printer

and cartridge sector (there is no specif ic sector for cartridge

remanufacturing under Brazilian working laws, at least not yet).

This sector directly employs nearly 100,000 people who are getting

organized in terms of creating new syndicates, and getting more

engagement from the sector’s businessmen. The Brazilian industry is

expected to regain the growth rate experienced before the crisis which

hovered around 25-30%. (Industry Focus Issue 40 Recycling Times-

Chinese)

Cartridge remanufacturing growth in IndiaAccording to estimates, the Indian cartridge market is estimated

around Rs 1,400 crore annually, growing at 30%. Off which nearly

35% is contributed by alternative supplies like compatibles and

remanufactured products. Unfortunately, a large chunk of this is

contributed by counterfeiters and low-quality compatibles. Genuine

remanufactured brands contribute less than 10%. Re-manufacturers

would be compelled to adopt the best practices which will work

towards eradicating unscrupulous operators. (Industry Focus Issue 40

Recycling Times-Chinese)

Ukraine's printer supplies market on the riseBeing one of the largest markets in Eastern Europe, Ukraine's market

of printers and printing supplies follows closely Russia's positive and

negative growth patterns. Ukraine accounts for 70% of hardware,

20% of supplies and only 10% of service. With such a high ratio of the

devices segment it goes without saying that any slight fluctuation of

the economic stability gets this market to fall. These changes in the

local consumer's behaviour resulted in the 6% growth of the Ukrainian

market of printing supplies in terms of units in 2009 as compared

to 2008 (according to IDC). But the value of the market fell to $153

million, which is by 34% lower than in 2008. This tells again about the

high level of price sensitivity with the local consumer in the difficult

economic conditions. (Industry Focus Issue 42 Recycling Times-

Chinese)

Market analysis of Continuous Ink Supply Systems

in RussiaThe analysis of the market of Continuous Ink Supply Systems (CISS)

targeted CISS for use in inkjet printers, covering small formats (A4 &

A3) office and home printers as well as large format devices (above

A3). The Russia CISS market reached 0.203 million in 2009. In this

same 2009, the market of inkjet printers grew and is believed to have

reached 11 million units. With the worsening economic conditions

in the region due to the financial difficulties, local consumers started

exploring less expensive solutions. The devaluation of the ruble made

original cartridges less affordable to consumers; more people thus

sought to print less or use non-original consumables. (Contributors


Laser cartridges OEM vs. aftermarket trends in

imaging supplies-Western Europe and US marketsFor years, the competition between OEM and aftermarket laser

supplies has been relatively stable. For example, the aftermarket has



had rough 33% of the market for cartridges used in monochrome HP

LaserJet printers for about 10 years. Lately, the OEM printer supplies

market has felt some challenges as the aftermarket has gained share

from several different causes including the recession, MPS and growing

competition from products made in China. Customers looking for ways

to cut costs and save money have looked to aftermarket alternatives

in the supplies market of which there can be a number of options, at

least for black and white printers. This article will consider the current

dynamics in the supplies market and how the aftermarket in the

United States and Western Europe can pursue and maintain customer

opportunities. (Market Data Issue 4 Recycling Times)

Forecast of the second half of 2010 China printer

suppliesRecycling Times interviewed 100 companies in China to take a

snapshot of the aftermarket printer supplies industry in China.

The economic recovery and the increasing shipment of worldwide

hardcopy peripherals suggest a flourishing printer supplies market.

From January to April, the printer consumables market in China

thrived, especially for toner and toner related products. Of the 42

companies, 66.7% of them answered that their sales volume has

grown. And the average growth is 26.9% over the same period of last

year. 30.7% had a flat result and only 2.6% of them sold fewer products

than 2009. (Market Data Issue 4 Recycling Times)

Inkjet cartridges OEM vs. Aftermarket trends in

imaging supplies-Western Europe and US marketsCompared with the laser aftermarket, the inkjet aftermarket operates

on a different dynamic due mainly to the differences in technology and

customer segments. Inkjet printers either use an integrated cartridge

or a tank format. In the US, integrated cartridges continue to make

up the majority of the market primarily due to the dominance of HP.

Lexmark supplies have seen a decline but

this has been offset by the growth in Dell

products. Tank-based cartridges represent

a larger share of the European market than

they do in the US due to the strength of

Epson and Canon. In addition, the emerging

brands of Brother and Kodak both use tank-

based systems. Newer Lexmark models are

switching to tanks and some HP printers also

use tanks. (Market Data Issue 6 Recycling

Times)

BRIC aftermarket printer supplies

markets evaluationI n t e r m s o f t h e i n s t a l l e d b a s e , t h e

combined BRIC region is about one-third

the size of the total U.S. market. At the same

time, however, InfoTrends is projecting

strong growth for the combined BRIC region, while the U.S. market is

expected to remain essentially flat. By the end of the forecast period,

the installed base in the BRIC region will amount to about 55% of the

total installed base in the U.S. market. China will represent almost

half of the BRIC installed base - by all measures, this is the largest of

the four BRIC countries. The BRIC counties are very much dominated

by black & white printing and are expected to remain so though the

forecast period. The installed base for black & white laser printers and

MFPs will account for the bulk of overall market growth. There are also

many inkjet devices in the installed base, but they are primarily used

for monochrome output. Ink refills are widely used to reduce the cost

of inkjet printing. The barrier of widespread use of color machines is

also analyzed. (Market Data Issue 8 Recycling Times)

Dynamics of finished products companies in

aftermarket printer supplies industryRecycling Times interviewed 208 companies during RemaxAsia Expo

2010 to see how the industry was going. In terms of the production

output of the past two years, we are happy to see that most companies

increased their production, especially the toner cartridge producers,

85.42% of whom raised their production while 10.42% companies

remained at the same level of production. 62.07% of the companies

that make inkjet cartridges and CISS products have witnessed an

increased production while 20.29% of them have seen neither growth

nor a drop in production scale. This survey shows that many finished

product companies are running well and the market is undergoing

some changes. For example, the mature markets such as North

America are pushing market players away by restrictions on legal issues

and are not as dynamic as before. Thriving markets such as Eastern

Europe, Russia and the Middle East are becoming the new focus for

many companies. (Features Issue 8 Recycling Times)



Legal issuesHP

Against MMC, Mipo et. alOn September 23, 2009, HP filed a complaint requesting that the USITC

commence an investigation pursuant to section 337 and cease and desist

orders to all respondents.

The patents in suit are US Patent Nos. 6,959,985; 7,104,630; 6,089,687;

and 6,264,301. The defendants are Zhuhai Gree Magneto-Electric Co., Ltd.,

InkPlusToner.com of Canoga Park, Mipo International Ltd., Mipo America,

Shanghai Angel Printer Supplies Co. Ltd., SmartOne, Shenzhen Print Media Co.,

Ltd., Comptree, Zhuhai National Resources & Jingjie Imaging Products Co., Ltd.,

Tatrix International and Ourway Image Co., Ltd. According to the complaint,

the asserted patents relate to specialized printing fluid containers. In particular,

the inventions relate to printing fluid containers that have enhanced alignment

and latching features, the ability to hold different volumes of ink, and the ability

to electronically communicate with the overall printing system regarding the

amount of ink remaining in the container.

As of March 18, 2009, HP announced that it had reached settlement

agreements with InkPlusToner, Comptree Ink, SmartOne Service and Zhuhai

Gree Magneto-Electric Co., Ltd. of China. The Administrative Law Judge has

entered default judgment against the remaining seven respondents.

On April 1, 2010, HP announced it has reached a settlement agreement with

Hong Kong based Print-Rite Holdings Ltd. relating to HP 02 inkjet cartridges.

Print-Rite acknowledges that HP’s patents are valid and in effect and agreed

to withdraw the products involved in the dispute from the United States and

other countries having corresponding patent filings. In March, HP settled

similar patent disputes with three other tech companies. HP is also working

to settle a number of other complaints

involving other companies that sell similar

types of inkjet cartridges.

On May 20, 2010, HP added an additional

defendant, Asia Pacific Microsystems Inc.

(APM) of Taiwan, an affiliated company

of Taiwan-based UMC Group to the suit.

The refiled case also adds Hewlett-Packard

Development Company, a subsidiary of HP,

as a plaintiff in the case.

Against Mipo et. alOn March 5, 2010, HP sued Mipo

Technology Limited of Hong Kong, Mipo

Science & Technology Co. Ltd. of China,

Mextec Group Inc. dba Mipo America Ltd.

of Florida, Sinotime Technologies Inc. dba

All Colors of Florida, and PTC Holdings

Limited of Hong Kong. HP alleged that the respondents have engaged in

violations of Section 337 through the unlicensed importation into the United

States, the sale for importation, and/or the sale within the United States after

importation of the accused products that infringe one or more claims of United

States Patent Nos. 6,234,598, 6,309,053, 6,398,347, 6,412,917, 6,481,817, and

6,402,279. HP sought a court order blocking infringement plus unspecified

damages.

Turbon vs HPOn June 9, 2010, Turbon International filed a complaint against HP in a

New York Manhattanfederal court that claims that HP committed fraud,

misappropriated trade secrets about Turbon’s collection of empties and

competed unfairly in its dealings with Turbon. Turbon is seeking both money

damages and injunctive relief.

Against Mipo et al.On June 25, 2010, Hewlett-Packard Company of Palo Alto, California and

Hewlett-Packard Development Company, L.P. of Houston, Texas filed a

complaint requesting that the USITC commence an investigation pursuant to

Section 337.

The complaint alleges that Mipo International Ltd. of Hong Kong; Mextec

Group Inc. d/b/a Mipo America Ltd.; Shanghai Angel Printer Supplies Co. Ltd.;

Shenzhen Print Media Co., Ltd.; Zhuhai National Resources & Jingjie Imaging

Products Co., Ltd., Tatrix International and Ourway Image Co., Ltd. have

engaged in violations of Section 337 through unlicensed importation into the

US, sale for importation, and/or sale within the US after importation of certain

inkjet ink supplies and components thereof that infringe one or more claims of

US Patent Nos. 6,959,985 (the ‘985 patent) and 7,104,630 (the ‘630 patent).



According to the complaint, both the ‘985 patent

and the ‘630 patent generally relate to printing-fluid

containers, such as ink cartridges.

Complainants allege that each of the Proposed

Respondents manufactures or purchases black and/

or color ink cartridges compatible with the “HP 02”

product line in China and sells such cartridges for

importation into the US According to the complaint,

the accused “HP 02” compatible cartridges infringe

several claims of both the ‘985 and ‘630 patents.

Canon

Canon takes on replacement toner

cartridgesOn June 28, 2010, Canon Inc., Canon USA, Inc. and

Canon Virginia, Inc. filed a complaint requesting that

the USITC commence an investigation pursuant to

Section 337.

Canon alleges infringement of certain claims of two of its US patents,

5,903,803 and 6,128,454 which both relate to a projection on photosensitive

toner cartridge drums that allow users, rather than technicians, to remove and

replace the drum. In the complaint, Canon separates the Respondents into

two categories. The first group is the so-called “Ninestar Respondents” which,

according to Canon, are all under common ownership and control. The second

group-the “Retailer Respondents”-allegedly infringe through sales of the toner

cartridges manufactured by the Ninestar Respondents. (Features Issue 5

Recycling Times)

Canon resolved with Polek and CopyliteOn July 26, 2010, USITC has voted to institute an investigation of certain toner

cartridges and components thereof. The products at issue in this investigation

are replaceable toner cartridges and components thereof, including

photosensitive drums.

Canon announced the resolution of a patent infringement lawsuit against

Polek & Polek Inc., concerning certain Polek & Polek's toner bottle products

and a patent infringement lawsuit against Copylite Products Corp. and Copylite

Products, LLC. ("Copylite"), concerning certain Copylite toner bottle products,

both sold for use in Canon copier and multifunction products (MFPs) on

September 17, 2010.

Lexmark against 24 companiesOn August 20, 2010, Lexmark International Inc. filled complaint with the

USITC against 24 manufacturers, importers, distributor and retailers of

replacement toner cartridge, claiming they infringed 21 US patents held by

Lexmark. The complaint named defendants such as Ink Technologies, Ninestar

Image, Seine Image, Ziprint Image, Inkjet Superstore, Ink Master, Virtual

Imaging, Jahwa, and Print-Rite and so on.

Lexmark requests the USITC to issue a permanent general exclusion order,

or in the alternative, a limited exclusion order forbidding entry into the United

States of all toner cartridges infringing the Asserted Patents, and a permanent

cease-and-desist order directed to each Respondent.

Lexmark also filed a patent-infringement complaint in the US District Court

for the Southern District of Ohio against the same defendants. The District

Court complaint contains allegations similar to those in the USITC complaint

and seeks injunctive relief, monetary damages and attorneys’ fees.

OEM vs Aftermarket: report from the front lineTo offer our readers a better general idea about the recent patent disputes

between OEMs and the aftermarket industry, we specially worked out this

summary of recent OEM legal activities against aftermarket manufacturers

regarding patents and a summary of successful defenses against OEM patent

suits. (Features Issue 7 Recycling Times)

Samsung against TNIRPSamsung took legal action against South Korean chip manufacturer TNIRP

accusing it of violating patents with its compatible smart chips and resetting

devices. Now TNIRP is proceeding with invalidity action for the patent itself and

at the same time, preparing data to refute the patent.

Epson resolved with Medea Epson reached an agreement with Medea International over a long running

inkjet cartridge patent infringement case, concerning two patents in the

lawsuit. Medea International “agreed to withdraw the products from sale

and pay an undisclosed sum towards Epson’s claim for substantial damages

and legal costs” in an agreement effective on October 18, 2010. However, the

Managing Director of Medea, Yusuf Okhai has made a statement that “"It is

absolutely true, that we have decided not to challenge the validity and that we

will withdraw the Epson compatible products. We have not ever admitted any

infringement.” (Legal Issues Issue 8 Recycling Times)



Shows & Events

Summary

Remax@Paperworld 2010 Remax@Paperworld 2010 was held in hall 4.0 of the Messe Frankfurt for the

first Remax event that is being held in parallel with Paperworld. Paperworld is

welcoming 2,111 exhibitors from 66 countries.

ReIndia Expo 2010ReIndia Expo 2010 was held in Mumbai, India on Jan 29, 2010 in Bombay

Exhibition Centre (BEC). There were 36 exhibitors. It was estimated that 1500

visitors attended the event and most of them were from the industry in India.

ITEX 2010ITEX 2010, witnessing its tenth birthday, was hosted by Imaging Network,

a subsidy of Questex in Las Vegas Convention Center. There were more than

160 corporation exhibitors on the show, most of which were from America. It

is estimated that there were more than 2500 visitors during the two day show,

most of whom were dealers and distributors in America. Some of the visitors

were from Canada, Mexico and other South American countries.

CIFEX 2010: a complete successOn April 23 and 24, the North China Consumables Forum and Expo (CIFEX)

2010 was held in Hebei. The event welcomed 52 exhibitors, 983 visitors and

103 delegates. During the show, a productive round-table meeting discussed

the themes of increasing communication and avoiding hostile competition.

Toners Conference 2010From May 17 to May 19, the Toners Conference 2010 was held in Marina del

Ray Marriott Marina del Rey, California. The three-day conference focused on

toner and the toner cartridge industry. The latest technology, the emerging

markets and the developments and trends for the industry as a whole were the

key topics of the conference.

Reciclamais South American Expo 2010Reciclamais South American Expo 2010, which was hosted by ReciclaMais

Magazine. There were more than 80 companies exhibiting at the show.

RechargRussia Expo 2010RechargRussia Expo 2010 was held in Moscow on June 29-30. Over 60

companies and their partners from 9 countries took an active part in the

exhibition in 2010. China alone was represented by 35 companies, Russia

following with 12 companies. Germany, Turkey, Korea sent 3 companies each.

Over 2200 visits were registered during the 2 expo days.

World Expo 2010On July 14 and 15, 2010, World Expo 2010, held by Recharger Magazine, had

more than 110 exhibitors.

RechargExpo 2010From July 14 to 16, RechargExpo 2010 was held in Jakarta. The show drew

about 100 exhibitors from Indonesia, Singapore, China and other regions

around the world.

GRIGA 2010 unveils a new era for imaging industryThe charter meeting of Global Remanufacturing Industry General Assembly

(GRIGA) was lit-up by inspiring speeches and discussions executed by

representatives from businesses, trade associations and industry media from

the four corners of the world. This inaugural event signals a new era for the

imaging industry: one of international communication and collaboration.

GRIGA provided a new forum for delegates from international trade

associations, industry media and entrepreneurs of the world to join together

and discuss common issues faced by the industry as a whole.

RemaxAsia Expo 2010: reaching a new heightRemaxAsia Expo 2010, held from September 26 to 28 by CCPIT Zhuhai

Branch and Recycling Times Media Corporation, has concluded successfully.

The show saw unprecedented growth, with a show floor of 23,000 square

meters-a 51.2% increase in exhibition space over the previous year. The three-

day event welcomed 360 exhibitors from 18 countries and regions as well as

8,626 visitors from 81 countries and regions. This means since its debut in 2007,

RemaxAsia Expo has become the world’s largest trade event for the aftermarket

printer supplies industry.

2010 is coming to an end. I am sure most companies have ups and downs on the road. Any company aspiring to paint for itself a bright, prosperous future must

continually improve itself and surpass its previous efforts. What is your most rewarding plan for 2010? Wish you all a prosperous future in 2011!

Market DataRecycling Times Magazine


Altogether we received 98 surveys out of 98, of which 97 of

them were valid. Of these 97 visitors, 10 were from Eastern

Europe (Including Kazakhstan, Poland and Russia), while 15

were from South America (including Argentina, Brazil, Chile,

Mexico and Peru). Another 14 came from North America

(Canada and the USA). 26 of them came from Western

and Central Europe (including Britain, Germany, Italy, the

Netherlands, Spain and Switzerland). Another 14 of them

came from India. The other 18 came from Australia, Israel,

Japan, Nigeria, Palestine, South Africa, Thailand and, Tunisia

which we refer to in this article as “others” (all other regions

apart from China).

Since we handed out the questionnaire randomly at

the exhibition hall, the visitors can be seen as a sample

that represented the percentage of all the visitors at the

show. Figure 1 roughly shows the percentage of visitors of

RemaxAsia Expo 2010.

Primary business The respondents were asked what their primary business

was. They could choose multiple choices from distributor,

OEM, manufacturer, agent, media, retailer, research

organization and others.

50.5% of the respondents were distributors and 36.4% were

manufacturers. 16.2% of the respondents were also retailers.

See figure 2 for detailed numbers of the respondents’ major

businesses. For mature markets such as North America and

Europe, the visitors were distributors, OEMs, manufacturers,

agents, empties collectors, companies that provide

technology on manufacturing toner and the media. However,

of the respondents from South America, the spectrum

was narrower – with only distributors and manufacturers

responding. We can estimate from these numbers that

emerging markets have not enough support or rather that

the complete chain for the industry has yet to take shape in

emerging markets. Since the question was a multiple choice

one, the percentage in all is larger than 100%.

One other thing is noticeable: OEMs from India, North

America, Eastern Europe and other regions of the world also

took part in for RemaxAsia Expo 2010. They took up 4.0% of

the total respondents.

Purpose of visitIn order to find out what the visitors’ main purpose for their

visit, the respondents were asked to choose several options

from getting to know the market and collect information, to

look for new suppliers, to visit current suppliers, to look for

investment opportunities or partners and to experience the

show with a view to exhibiting next year.

From figure 3, we can see that to know the market

condition and collect market information was the most

important reason for visiting.

Visitor survey at RemaxAsia Expo 2010During RemaxAsia Expo 2010, a large number of international visitors came and communicated with local and overseas exhibitors about their needs. Recycling Times interviewed 98 overseas visitors to find out how their business are doing and their future focus for development in order to get a snapshot of the current state of the industry

▲ Figure 1 Overseas visitor percentage by regions

▲ Figure 2 Major businesses of RemaxAsia Expo 2010 visitors



A significant 48.5% of overseas visitors were here to visit

current suppliers, which means 48.5% of all the overseas

visitors had suppliers who were the exhibitors or around

Zhuhai city during the trade show. This is a very good sign

for the manufacturers in the domestic industry. However,

53.6% of the overseas visitors came to the show hopping to

look for new suppliers, which signifies that the competition

is very fierce and the respondents were not satisfied with

their current suppliers be it on price, quality or other factors.

One other thing worth mentioning is the percentage of

respondents (12.4%) who were looking to find investment

opportunities or partners during the show. When Recycling

Times was chatting with some of the visitors, we also

met several people who wanted to join the industry as a

remanufacturer or distributor. Judging from this, we think

that the aftermarket printer supplies industry is still a thriving

industry with potential in spite of patent infringement

disputes and other difficulties ahead.

Products sourced from ChinaAlthough we know about the purposes of visiting the

trade fair, we wanted to also find out what kind of products

respondents sourced from China.

Again, the respondents were asked to do a multiple choice

question about what they were sourcing from China.

Those who were sourcing for finished products (including

inkjet and toner cartridges) accounted 54.6% of the overall

respondents. And the most wanted products are toner, parts

and components for toner cartridges, taking up 57.5% of all the

respondents. Inkjet cartridge parts and components are easier

to find than those for toner cartridges. In this survey, only

28.9% respondents were sourcing ink and related products

from China. This also reveals the weakness of China in terms

of toner products manufacture. As China has a slightly longer

period of time in making inkjet cartridges and shorter time in

producing toner-related products, this is also understandable.

It is a bit surprising that parts for printers and copiers were

sourced from China by 38.1% of the interviewed visitors.

Empties are also wanted from China. 25.8% respondents

indicated they looked to buy empty cartridges from China.

Following-up were paper and Ribbons (TTR), making up

23.7% and 22.7% respectively. Equipment such as refilling

machines, kits and tools were also looked for by 14.4% of the

respondents. The Chinese printer hunters also represented

14.4% of the respondents. For the packaging material, 9.3%

of the respondents would source them from China. Services

were also being sourced by the respondents (4.1%). Figure 4

gives the detailed results of this survey.

If we look at how the market segments break down, all

the regions except Eastern Europe have more than 50%

respondents sourcing finished products from China, with

the highest percentage being South America at 86.7%.

However, only 10% respondents from Eastern Europe said

they would source finished products from China. Given that

60% of them were distributors and only 10% Eastern Europe

respondents were manufacturers, this suggests that the local

distributors in Eastern Europe market supply ink, toner,

parts and components for local manufacturers. That is, the

manufacturers rely on the distributors for supply of parts and

components and don’t import themselves.

▲ Figure 4 Products sourced from China by overseas visitors of RemaxAsia Expo 2010

▲ Figure 3 What is your main purpose of visit?



Target markets Western and Central Europe were the most mentioned

target markets during the survey, with 37.1% respondents

identifying these as their main target market.

The second one was South America, taking 28.9% of

the vote. It is worth noticing that all the respondents

from South America marked South America as their target

market but marked none of the other markets as target.

This suggests both that South America distributors and

manufacturers are committed to their local market or that

they are not strong enough to explore other markets. To a

certain point, this also says that the market is not mature

yet and the potential is enormous since the market is set as

target market by distributors and manufacturers from all the

other parts of the world. South America has already been

recognized as an emerging market.

China was targeted by 11.3% of the overseas as main

market, ranking eighth among the 10 regions we cut the

world into. This may be due to the some market players

have cut their prices in order to grab more market share

and other form of vicious competition in China, which is

not positive for the long-term development for the future

of the aftermarket printer supplies industry as international

players are reluctant to come into the Chinese market.

Japan remains the least penetrated by international

visitors for the reason that the Japanese market has

relatively higher demand over quality and exclusive trends

towards foreign brands.

Development focusFrom Figure 6, we can learn the 68.0% respondents would

place future development focus on compatible cartridges

while 47.4% also put emphasis on remanufactured

cartridges. 14.4% respondents would develop in paper,

CISS, parts, providing an OEM service, empties, toner, OPC,

ink and other parts and components and services (such

as MPS) that support

the development of the

industry.

The South American

respondents were more

interested in compatible

cartridges, with 93.3%

of them hoping to exert

efforts in this field in the

future while only 13.3%

of them would focus on

remanufacturing cartridges.

Other emerging markets such as East Europe, India other

and regions show the same pattern. 80% respondents

from East Europe would focus on producing compatible

cartridges. 69.2% of India respondents would place

compatible cartridges as future emphasis and 38.5% would

focus on remanufacturing cartridges. In the “other regions”

market segment, 83.3% respondents saw developing

compatible cartridges as their main focus.

In North America and Western and Central Europe,

the situation was opposite. More placed remanufactured

cartridges as future focus.

Summary97 visitors make up a relatively small sample; however, we

can still see the potential of the industry and its dynamics,

especially with regard to future development and their

focus. It is evident that the market is feeling the competitive

pressures as many players are busy looking for new suppliers

and reaching out for new development.

This is a general picture of the international visitors’

situation, to know more about the exhibitors’ development

situation, please refer to Issue 8 of Recycling Times magazine.

If you have any views about these two reports, you are

welcome to contact Recycling Times’ editor at editor@

therecycler.com.cn.

▲ Figure 5 What are your main target market?

▲ Figure 6 Which of the following is the main focus of future development?



The imaging industry has been showing outstanding

growth since the beginning of 2010. Leading printer

manufacturers such as Xerox, Lexmark and Canon have

reported their third quarter per formance and both

demand and sales are up, resulting in higher profits or

revenue. Recycling Times presents you with a closer look

at their performance.

Canon: big net profit increaseFor the third quarter of 2010, Canon reported net

income of ¥68,195 ($811 million), an increase of 85.6%

versus the third quarter of 2009, with net profit nearly

doubling, up 74.1% versus third quarter 2009.

Economic conditions have continued to improve broadly

throughout the world. In Japan, consumer spending

has shown signs of recovery, while in the United States;

consumer spending has grown steadily in spite of the

unemployment rate remaining at a relatively high level

and other concerns. While Europe recorded growth in

exports, the pace of economic recovery remained modest

as financial concerns within the region were not fully

eased. The Asian economies, such as China and India,

along with other emerging countries, recorded stable

expansion.

Within the off ice equipment market, demand for

network digital multifunction devices (MFDs) recovered,

particularly for color models. The company also reported

a steady rebound in sales of laser and inkjet printers.

Third quarter results by segmentWithin Canon’s Office Business Unit, sales of color

n e t w o r ke d M F P s i n c r e a s e d 3 8 % b o o s t e d b y t h e

recovery in demand for office equipment along with

the introduction of new imageRUNNER ADVANCE-series

products, while sales of monochrome MFPs increased

24%, reflecting the recovering market conditions. Sales

of laser printers increased 61%. Canon says sales of

laser printers in third quarter 2009 had been sluggish

due largely to adjustment of inventory levels. In spite of

OEMs continue to grow in Q3

▲ Figure 1 Office Business Unit actual sales of Q3 and projection of 2010

Office3Q FY

3Q 2010 Actual / FY 2010 Projection(Billions of yen)(Billions of yen)

600

900

2 000

3,000Sales Growth rate y/y( ) Local currency base

( )

404 507 433300

600

1,645 2,015 1,984 1,7371,000

2,000( )

03Q09 3Q10 3Q10

0FY09 FY10 FY10 FY10

Previous Current Current( Excluding new consolidation

17 7%750

OP ratioOp.Profit 18.5%150

OP ratio

projection

Growth rate y/y

projection Projection( Excluding new



229 308285 293

17.7%13.9% 14.8%14.1%

250

500

8059 76

15.1%

50

100Growth rate y/y .

229 308285 2930

FY09 FY10 FY10 FY10

8059 760

3Q09 3Q10 3Q10Previous Current Current( E l di Previousprojection

Currentprojection

CurrentProjection


effects )


effects )

+20.6%(+27.7%)+25.6% +35.7%

+30 3% +27.7%

14.5%



the effects of the strong yen, third quarter sales for the

segment totaled ¥506.9 billion ($6,035 million), up 25.6%

year-over-year, and were ¥1,438.0 billion ($17,119 million)

for the nine months ending September 30, 2010, an

increase of 21.9%. Profit increased 30.3% to ¥76.3 billion

($908 million) for the third-quarter, and increased 56.0%

to ¥232.2 billion ($2,764 million) for the combined nine-

month period, mainly as a result of expanded sales and

the rise in the gross profit ratio.

Figure 1 shows the Office Business Unit’s actual sales

and the projection for the whole year of 2010.

Figure 2 reveals the sales situation with regard to

copiers. The total year-on-year growth rate was 28% in

quarter three.

Within the Consumer Business Unit, Canon reported

that sales of inkjet printers, displayed solid growth,

particularly in Asia, but sales volumes decreased slightly

from the level a year ago, and these were also affected by

the strong yen. During the third quarter Sales of inkjet

printers rose 3.3% to ¥324.8 billion ($3,866 million), and

rose 10.2% to ¥979.1 billion ($11,656 million) for the first

nine months of 2010. Sales volumes for new digital SLR

cameras also rose.

In Canon’s Industry and Others Business Unit, sales of

semiconductor lithography equipment increased 31.7%

to ¥109.8 billion ($1,307 million) in the third-quarter, and

rose 18.2% to ¥301.0 billion ($3,584 million) in the fits

nine months of 2010.

Profits in Canon's Office Equipment Business grew 30%,

while Xerox Corp (XRX.N), Canon's main rival in office

equipment, also beat quarterly profit estimates at the end

of October signaling a rebound in companies' confidence

about spending.

Overall, Canon's sales grew in all geographical areas

except Japan.

OutlookDemand for such products as color network digital

MFDs and laser printers are projected to head toward a

recovery. With respect to the consumer products market,

demand for inkjet printers is likely to expand gradually in

response to the economic turnaround.

For the full year to December 31, 2010, Canon now

projects the following:

• net sales of ¥3,710.0 billion ($44,167 million), a year-

on-year increase of 15.6%

• operating profit of ¥390.0 billion ($4,643 million), a

year-on-year increase of 79.7%

• net income of ¥245.0 billion ($2,917 million), a year-

on-year increase of 86.1%

• operating profit of 390 billion yen ($4.79 billion).

▲ Figure 2 Copier actual sales of Q3 and projection of 2010 in Office Business Unit

Office (Copiers) Growth rate y/y

(Unit base)3Q 2010 Actual / FY 2010 Projection

(Unit base)

Copiers 3Q FY

Color +38% +31%

M 24% 13%

Growth rate y/y( ) Local currency base

Sales(Billions of yen)

800 OthersOther printing devicesColor copiersMonochrome copiers

2 000

2,500 Mono-chrome

+24% +13%

Total +28% +18%

( ) Local currency base

2,015 1,984

600 507

4041,500

2,000Color ratio (Copiers)

3Q FY

Value base* 52% 52%

1,645

400404

1,000

, Value base* 52% 52%

Unit base 29% 30%

*Includes consumables

200 500+9.3%(+20.1%)

+6.5%(+13.0%)

03Q09 3Q10

0FY09 FY10 FY10

Previous CurrentCopier total

Growth rate y/y

-2.4%(+6.7%) -3.5%(+2.4%)

Copier totalPrevious

projectionCurrent

projectionGrowth rate y/y

+3.3%(+13.2%) +1.5%(+7.7%)Growth rate y/y

Note: FY10 projections include effects of new consolidation in "Others."



Lexmark: profit rose“Lexmark’s third quarter earnings were better than expected

with ongoing good revenue growth, strong earnings growth and

strong cash flow,” said Paul Rooke, Lexmark president and chief

executive officer.

“These results were driven by our improved product lines,

continued growth in managed print services, and ongoing strong

growth in workgroup lasers and higher-end inkjet products,”

added Rooke.

The Company is primarily managed along divisional lines: the

Printing Solutions and Services Division (PSSD) and the Imaging

Solutions Division (ISD):

Printing Solutions and Services Division (PSSD)PSSD primarily sells laser products and primarily serves

business customers. Laser products can be divided into two

major categories – shared workgroup products and lower-priced

desktop products.

Third-quarter PSSD revenue ($731 million) grew 12% year-on-

year. PSSD hardware revenue grew 19% and laser unit shipments

grew 5%, with over 20% growth in total workgroup lasers and

laser MFPs. PSSD’s laser average unit revenue (AUR) was up 14%,

driven by a positive mix shift in the percentage of workgroup

products.

In early October, Lexmark announced a significant expansion

of its workgroup color devices with the introduction of the

new Lexmark X792 family of color laser multifunction products

(MFPs), the Lexmark C792 family of color laser printers and the

Lexmark X925 and C925 Series of A3 (11-inch x 17-inch) ledger

color offerings. The color laser printers and MFPs include 12

new workgroup models, each including an e-Task color touch

screen.

PSSD is primarily focused on capturing profitable supplies and

service annuities generated from workgroup monochrome and

color laser printers and laser MFPs.

Imaging Solutions Division (ISD) ISD predominantly sells inkjet products to a range of

customers, including small office home office (SOHO) users,

professionals and consumers who are heavy users, as well as

business users who may choose inkjet products as a lower-

priced alternative or as a supplement to laser products. In

certain geographical areas ISD also sells select laser products to

SOHO and business users that purchase products through retail

channels.

The ISD revenue of $274 million declined 10% year to year, and

all other GAAP revenue was $14 million, or $20 million excluding

acquisition-related adjustments. ISD hardware revenue declined

15%. Strong growth in higher-end inkjets will offset the decline

in low-end units, reflecting the ongoing transition of the inkjet

product line. ISD unit shipments declined 28% but ISD AUR

increased 17% driven by a positive shift in the percentage of

higher-end inkjets in the mix.

The supplies revenue grew 4% as strong growth in laser

Office (Other Printing Devices) Growth rate y/y

( )3Q 2010 Actual / FY 2010 Projection

(Unit base)

LP 3Q FY

Color +26% +47%Growth rate y/y( ) Local currency base

Sales(Billions of yen)

2 000

2,500800 OthersOther printing devicesColor copiersMonochrome copiers

Mono-chrome

+64% +67%

Total +58% +64%2,015 1,984

1,500

2,000600 Color ratio (LP)

3Q FY

V l 41% 42%

1,645507

404

1,000

,

400Valuebase*

41% 42%

Unitbase

13% 13%+13.5%(+24.7%)

+10.9%(+19.4%)

404

500200 *Percentage of Other PrintingDevices Sales attributable to Color LP

0FY09 FY10 FY10

03Q09 3Q10

Previous Current

Note: FY10 projections include effects of new consolidation in "Others."

Previousprojection

Currentprojection

▲ Figure 3 Other printer devices sales of Q3 and projection of 2010 in Office Business Unit



supplies was partially offset by an ongoing decline in inkjet

supplies.

The introduction of new products such as Lexmark's

Professional Series, including inkjet AIOs (including new Web-

connected touch screen AIOs) targeted for small and medium

businesses and the announcement in October 2010 of the

Lexmark Genesis inkjet AIO, a unique device that extends the

company’s line of inkjet AIOs by targeting professionals, small

business and home office customers. The Web-connected

device is equipped with sophisticated features and functionality,

including the 4.3-inch capacitive color touch screen, the

Platinum, Pinnacle, Interact and Vizix print technology, which

uses separate ink cartridges to enable greater speed and

produces high quality print output at an economical replacement

cost for customers.

By strengthening the Company's focus on the sale of higher-

end, higher page generating inkjet devices, the longer-term ISD

objective is to ultimately stabilize and grow supplies revenue

based on a smaller installed base of higher page generating

devices.

In November, Lexmark announced it was combining its two

major printing operations – inkjet and laser – into a single

organization to target additional sales to businesses. The

combination of Lexmark’s Printing Solutions and Services

Division and the Imaging Solutions Division will be named

Imaging Solutions and Services (ISS). It is said that Lexmark’s

strategy of shifting inkjet technology upstream to high-usage

business customers now offers the opportunity to simplify

processes across R&D, marketing and sales teams into a

single organization, Imaging Solutions and Services and the

combination of the divisions will “bring more value to customers

(and) more consistency to our products”, said Jerry Grasso,

spokesman for Lexmark. He also said the idea behind it is that

Lexmark's inkjet printers have become more and more geared

toward businesses in recent years. Because lasers were already

focused on that type of customer, it made sense to unify the

sales, marketing, and research and development portions of the

businesses.

OutlookIn the fourth quarter of 2010, the company currently expects

low single digit revenue growth, and GAAP earnings per share

to be around $0.86 to $0.96, or $1.03 to $1.13 excluding $0.17

per share for restructuring-related and acquisition-related

adjustments. GAAP earnings per share in the fourth quarter

of 2009 were $0.76, or $1.16 excluding $0.40 per share for

restructuring-related adjustments.

XeroxXerox announced third quarter 2010 results that include

adjusted earnings per share of 22 cents and $366 million in

operating cash flow. Third quarter revenue of $5.4 billion was up

48%.

“Building on our solid first-half results, we delivered steady

revenue and earnings growth in the third quarter, keeping us on

track to close the year strong,” said Ursula Burns, Xerox chairman

and chief executive officer. “We’ve transformed our company

into the world’s leading enterprise for business process and

document management. During the third quarter alone, signings

for service contracts grew 26% and pro-forma revenue from our

BPO offerings was up 8%, along with 13% growth in equipment

sales,” she added.

Xerox’s operations cover Technology, Service and Other. We are

going to focus on the Technology segment, which includes the

sale of products and supplies, as well as the associated technical

services and financing of those products.

Segment Profit Third quarter 2010 Technology profit of $247 million showed

an increase of $13 million from third quarter 2009. The

increase in revenues and the lower cost and expense driven

by restructuring more than offset the negative mix impact

on gross profit from the increased percentage of equipment

revenues.

PSSD

ISD

72%27%

All other ~1%

Revenue by Segment

Revenue by Geography

U.S.

OtherInternational

45% 33%

22%

Europe

Revenue Composition

▲ Figure 4 Lexmark Q3 revenue by segment



The Technology segment is centered on strategic product

groups, which share common technology, manufacturing and

product platforms. This segment includes the sale of document

systems and supplies, provision of technical services and

financing of products. The revenue mix was 22% for Entry, 56%

for mid-range and 22% for high-end products.

Entry includes A4 devices and desktop printers. mid-

range includes A3 devices that generally serve workgroup

environments in mid to large enterprises. This includes products

that fall into the market categories (Color 41+ppm <$100K and

Light Production 91+ppm <$100K).

High-end products include production printing and publishing

systems that generally serve the graphic communications

marketplace and large enterprises, which we will not cover here.

Entry • 65% increase in installs of A4 black-and-white multifunction

devices driven by growth across all regions.

• 44% increase in installs of A4 color multifunction devices

driven by strong growth across all regions.

• 13% increase in installs of color printers driven by higher

sales of Xerox-branded products and sales to its OEM partners.

Mid-range • 22% increase in installs of mid-range black-and-white devices

driven by growth in recently launched mid-range products.

• 47% increase in installs of mid-range color devices primarily

driven by demand for new products, such as the WorkCentre

7120/7700, and the continued strong demand for the ColorQube

and the Xerox 700.

OutlookXerox now expects 2011 full-year adjusted earnings per share

of $1.05 to $1.10, up from 95 cents to $1.05 per share. The

company also expects free cash flow of $2.1 billion and $1 billion

in available cash for 2011.

Kodak: loss narrowsEastman Kodak Company reported a narrower loss for

the third quarter on improved profit margins and continued

operational improvements, despite a marginal fall in revenues.

The third quarter sales figure was $1.758 billion, a 1% decrease

on the third quarter of 2009, and the third quarter loss was $43

million, or $0.16 per share, compared with a loss of $111 million,

or $0.41 per share, for the third quarter 2009.

Sales in the quarter slipped 1% to $1.758 billion, which includes

an unfavorable currency impact of two percentage points.

Analysts expected sales of $1.61 billion. Second quarter sales

were $1.57 billion.

There a re three g roups in Kodak ’ s opera t ions :

Consumer Digital Imaging Group, Film, Photofinishing

and Entertainment Group and Graphic Communications

Group (which we will not cover here). The business-unit

performance is as follows:

Consumer Digital Imaging GroupIn Consumer Digital Imaging Group third quarter sales were

$670 million, up 25% from last year. Revenue from the digital

businesses grew 10% in the quarter, reflecting increased demand

for consumer and commercial inkjet products, packaging

solutions, and workflow software and services, along with a

successful non-recurring completion of intellectual property

licensing agreement.

Third quarter earnings from operations for the segment

improved by $171 million to $82 million, up from an $89 million

loss in the prior-year quarter.

Film, Photofinishing and Entertainment GroupThird quarter revenue from Film, Photofinishing and

Entertainment Group declined 25% to $431 million versus third

quarter 2009 and sales dropped 2.5% to $657 million at Graphic

Communications Group.

Profits from the company’s digital portfolio showed year-over-

year improvement for the fourth consecutive quarter.

Chairman and Chief Executive Officer Antonio M. Perez

commented, “Our third quarter performance was marked by

continued acceleration in our strategic digital growth businesses,

positive cash generation, improved profit margins, and continued

operational improvements across the company. I am particularly

pleased with the performance of our core growth businesses-

Consumer Inkjet, Commercial Inkjet, Packaging Solutions, and

Workflow Software and Services.”

Outlook “Revenue growth in these businesses continues to accelerate

and in the third quarter grew by a combined 23%. We also

enjoyed growth in equipment unit placements, which will drive

future consumable sales. All of these factors give me increased

confidence that we are on track for a strong fourth quarter

performance, and continued improvement as we move forward,”

said Perez.

For 2010, Kodak says it remains focused on three key financial

goals: digital-revenue growth, earnings from operations and cash

generation. Kodak continues to target total company revenues

of $7.5 billion to $7.7 billion for 2010 and earnings of $275 million

to $375 million.

It is also forecasting a 2010 loss in the range of $50 million to

$150 million, including the impact of a $102 million charge for

early extinguishment of debt. Analysts expect the company to

report revenues of $7.28 billion for fiscal 2010.

www.rechargrussiaexpo.com

Welcome to RechargRussia Expo 2011,Your Pathway to the Russian Aftermarket of Printing Supplies!

RechargRussia and RechargEast Magazines, well-reputed magazines specialized in the aftermarket of printing supplies in Russia and Eastern Europe, are happy to invite your company to take part in the VIIIth edition of RechargRussia Expo 2011, which will take place in Moscow, Russia, on May 18, 19, 20, 2011.

The RechargRussia Expos are traditionally organized in Moscow, which hosts this exceptional and unique event for the printing industry every year. The exhibition attracts thousands of specialists from the aftermarket of imaging and printing supplies. Owner, managers, technical specialists and salesmen from Russia and CIS countries are the main visitors of the exhibition.

RechargRussia Expo is the only professional event in the field of printing supplies organized in the Russian capital. Leading manufacturers and distributors of toner, inks, OPC drums, parts, remanufactured and compatibles cartridges all gather in Moscow each year to show their best products to the Russian aftermarket companies. Local distributors, resellers, rechargers come to the exhibition to get to know local and international exhibitors, get updates on market trends, start new and reinforce existing relationships and partnerships.

Our experience in organizing 7 consecutive specialized exhibitions in Russia is extremely valuable and can be used by your company to its utmost profit.

Feedback from the 2010 exhibitors:

Steven Yao, APEX, China: “The 2010

expo exceeded our expectations. We will

surely take part in the show in 2011 and

will probably choose to have a bigger

booth to display all our products”.

Angela Shekyls, SPEED INFOTECH

Holdings, Ltd., Russia/China: “The

2010 exhibition was good to our company.

We met many visitors from the last year’s

show. Although we didn’t get too many

new customers from the 2009 show, but in

2010 the prospects are looking good. This

year there have been much fewer end users,

but the number of distributors has grown.

In addition, we’ve had many visitors from

the far regions of Russia. We are definitely

interested very much in participating in the

expo in 2011.”

Ozlem Eris, IPM, Turkey: “In 2009

we established fruitful cooperation with

some Russian companies. In 2010 we are

expecting to make our position even stronger

in this market. All this happened with the

help of RechargRussia Expos. We are glad

that we participated in RechargRussia Expo

2010 and we have already reserved our

booth for 2011.”

Be in Moscow on May 18 and 19, 2011, when you will have the opportunity to attend the presentations of the 20 biggest buyers of compatible and remanufactured cartridges in Russia and CIS!

With the total annual purchasing power of over $250 million, these companies are the leaders in the market. Don’t miss the chance to meet them personally as they are always open to new mutually beneficial partnerships.

Russian companies buy remanufactured and compatible cartridges for over $586 million* per year. (*Source: Business-Inform, Russia)

Russia Market of Printing Supplies in 2004-2009

Russia Market of Laser Printing in under 45 ppm Segment

Year

Year

Qty, million units

Qty, original cartridgesQty, non-original cartridgesQty, refills

Genuine suppliesCompatible suppliesRefills

Market share (%)


RechargRussia Expo 2011 is your pathway to the Russia aftermarket of printing supplies!

Special exhibitor’s packages:• special ad discounts in both of the RechargEast and RechargRussia Magazine;• monthly mail distribution to all our Russian database (3,000+ companies): the emails include exhibitors’ profiles and hot offers;• monthly bulletins to all exhibitors full with important information about the Russian Remanufacturing Industry as well as large local buyers of compatible finished ink and toner cartridges.

Contact our representatives for more details.

In 2009 alone, over 6,000,000 compatible cartridges and over 34,000,000 remanufactured cartridges were sold in Russia.

OEM companies managed to sell just 9,200,000 cartridges.

The potential of Russia’s aftermarket of printing supplies is visible with an unarmed eye.

Is your company among the suppliers of spare parts for remanufactured cartridges or of compatible cartridges? Is your company in search of new markets? Is your company on the watch for opportunities?

Consider Russia - one of the fastest growing printing markets in the world!

We can take

you there:

Russia is a huge growing printing market:


Mirena Polihronova | [email protected]

Toby Tan | [email protected]

Alisa Andreeva | [email protected]

Trade Center “TISHINKA”, T-Modul • Moscow • Russia

ProfilesRecycling Times Magazine


As Speed Infotech Holdings Limited approaches its tenth

anniversary in 2011 the Recycling Times interviewed company

CEO, Mr Benjamin Young, to discover just how a small

trading company became one of China's top remanufacturers

of inkjet and laser toner cartridges – and a leading worldwide

distributor of aftermarket print consumables. “From the first

day we started business we understood the importance of

putting the customer first and how essential it is to introduce

the company and products to as wide an audience as

possible, so when customers begin the search for a supplier

we are always there ready to explain why they should do

business with us,” says Young.

Intricacies of doing businessOver the past ten years, Speed Infotech Holdings has

participated in over 50 trade exhibitions in many different

countries throughout the world – this experience, Young

says: “Has greatly raised our knowledge and awareness of

different business cultures”. He goes on to explain that,

“without understanding how things get done in a market

such as Russia, it would be impossible to even begin a

business relationship.”

Discovering just how a Shanghai-based company got

to learn so much about the intricacies of doing business

overseas we needed to learn more about their sales and

marketing strategies. “ We

seek to employ only the

m o s t e x p e r i e n c e d a n d

knowledgeable local staff,

we take good care of them

and provide them with all

the support they need to

succeed,” Benjamin Young

explained.

“Relat ionships between

people are a fundamental

element of business, they

cannot be ignored. Regardless

of how much money you

spend on adver t i s ing or

market ing – ult imately a

company must stand by its products and support its people

in every way.” He adds, “We want our people to become

the best they can be. My responsibility is to ensure we bring

the right talent together so that we can remain in the top

echelons of the remanufacturing business.

Expanding new marketsAs the focus on expanding new markets is uppermost in the

minds of CEOs around the world, Benjamin Young reflects

on some of the successful and not so successful strategies in

pursuit of market share. “As we face fierce price competition

in South America we decided to play to our strengths,

displaying to our customers the difference in quality and how

that affects both a company reputation and profitability.” He

continues, “we found many potential customers were being

price-conditioned by traders to seek out the lowest offer

price instead we took the view, along with other well-known

manufacturers, that it was better for the market to promote

the quality of the product.”

Often the 'Made in China' label has a negative association

applied to products. Many Chinese producers believe that

fighting on price is the only way to compete in the market,

meanwhile however, the consumers think very differently.

Most customers are educated in the realities of business

to understand it is better to buy one good product than

Speed Infotech expands worldwide

▲ Speed’s global network

ProfilesRecycling Times Magazine


several bad products. It saves both

time and money for the client and

the supplying company is able to

establish a bond of trust. “Integrity

in our commercial dealings and our

commitment to quality has been

the key to our success in new and

emerging markets – we understand

how difficult it is to win the business

of a new customer, and how easy it

is to lose a customer if the service is

poor, and if the products are cheaply

made, it is obvious to potential

customers that such suppliers are

only interested in their money and not building a strong

business relationship.”

External factorsAside from the supplier/customer relationship other

external factors can affect the business environment. Recent

developments worldwide in the treatment of waste and

the resulting legislation forbidding the transport of waste

products have begun to adversely affect the industry. Young

commented, “meeting these new external challenges to

our industry will be tough, this is true. I think the industry

needs to work together to lobby governments on the value

and environmental benefits our business can yield.” He

further added, “a policy of protectionism in countries East

or West will serve no long-term purpose, only ever short-

term benefits. Fair competition in open markets is the best

solution to meeting environmental objectives and worldwide

industrial growth. Legislation has an important role, but it

must be a balanced approach.”

Time and resourcesOver the past few years Speed Infotech has been investing

into new technologies and infrastructure. We asked Mr.

Young to explain some of the investment strategies. “As we

discussed, each market has specific needs and requirements

especially in BRIC (Brazil, Russia, India, and China) countries,

so whilst pricing policies and payment terms are important

they are not necessarily our, or our customers highest priority

when the means of distribution, the quality standards,

and the customs formalities take so much of our time and

resources.”

Contracts signed“We are good at what we do. Remanufacturing high-quality

inkjet and laser toner cartridges is a precision job, and this

is an innovation-led business we are in. Therefore, it is

absolutely essential to invest in research and development.”

The Shanghai factory has been recently revamped with new

production lines, and contracts have been signed with several

leading aftermarket parts suppliers to support the increased,

and more diversified range of laser toner cartridges in

production. Young explains, “Our market research and

customer feedback shows continued demand for mono and

color laser toner, we are tooling our factory to capitalize on

this future demand, and training our personnel accordingly.”

Company expansion projectsExclusively, for the Recycling Times, the Speed Infotech

CEO hinted at plans to launch a new international distribution

hub outside of the Chinese mainland. “We have been

studying the investment opportunities in Europe and hope

to release details about our company expansion projects in

the coming months.” Speculation about a new warehouse

facility has been reported as the most likely development,

supporting increased sales volumes into European Russia and

neighboring countries.

▲ Warehouse of Speed

▲ Speed products

Tech ZoneRecycling Times Magazine


First released in April 2008 the Xerox Phaser 3100 is based on a 20ppm, 600

dpi MFP engine that has a first page out in less than 13 seconds. These machines

can print, copy, fax and scan. The printers come with a starter cartridge rated for

2,000 pages and the standard cartridge (106R01379) is rated for 4,000 pages at 5%

coverage. These machines use a somewhat unique method of telling the printer a

new cartridge has been installed. Instead of a chip on the cartridge they use a Key

card that is inserted separately into the printer (See Figure 1). These reset cards need

to be replaced each cycle. When packaging the cartridge it is a good idea to tape the

card to the top of the bag so the user does not forget they have to insert the card for

the cartridge to work ( just like the OEM does)

An interesting item about this system is that the cartridge does not have a toner

end detection system. It is all controlled by the reset card.

These cartridges are fairly easy to do, and with a retail cost of $178.00* very

profitable too!

*As of February 2010

Remanufacturing the Xerox Phaser 3100 Toner Cartridge

By Mike Josiah and the Technical Staff at Uninet Imaging

Supplies needed

• Dedicated Phaser 3100 Toner • Dedicated Phaser 3100 Reset Card • Conductive grease

• 99% pure isopropyl alcohol • Cotton swabs • Soft, lint free wipes

Tools needed

• Toner approved vacuum. • A small Common screw driver • A Phillips head screwdriver

• Needle nose pliers • Size T-7 Torx driver

Remove the 2 silver pins, one from each side of the cartridge. Pry them

out with a small jeweler’s screwdriver and then grab them with wire cutters to remove them. Remove the Torx screws and plate

from both sides of the cartridge.2step

> T h e To r x s c r e w s u s e d i n t h e s e cartridges are size T-7.3st

ep >

1step

>



Remove the two screws on the wiper blade, and the blade. Clean out the

waste chamber.NOTE: Be very careful not to damage or distort the thin Mylar Recovery Blade next to the wiper blade. If this blade is bent or damaged in any way, it should be replaced.

8step

>

Re-install the two screws and the wiper blade. 9st

ep >

Clean off a l l the o ld conduct ive grease from the PCR contacts, and

replace with new. Remember, whenever using conductive grease more is never better. Only use a small amount (Match what the OEM had there).

10step

>

Install the cleaned PCR.11step

> Remove the four loose gears from the hopper.14st

ep >

From the gear side of the drum half, take a small punch (1/4”) or screwdriver

and drive the metal axle pin out. This axle is fairly tight. Make sure you do it from the gear side, (the keyed Side), if you try and drive the axle out from the opposite side, the axle will not move and you may damage the drum ground contact inside the drum. Remove the drum.

5step

>

Remove the PCR and clean with you preferred cleaner.6st

ep >

Install the drum axle from the hub side. Make sure the keyed end of the axle is

installed first. It is easier if you mark the keyed end with a marker so you know how to orientate it when installing it. In the picture show the side marks show the orientation of the flat or keyed edge, the top one show the keyed edge location.

12step

>

On the toner hopper, note the location of all the gears.13st

ep >

Remove the two screws on the wiper blade, and the blade. Clean out the

waste chamber.7step

>

Pry out one of the side panels, and separate the two halves.4st

ep >



Pry off the metal bushings from both sides of the developer roller shaft.19st

ep >

Remove the lower metal brace. Lift it out from the left side as the right side

has a tail that runs through the cartridge wall.24st

ep >

Remove the two screws from the doctor blade.

NOTE: The doctor blade in these cartridges actually consists of three parts. An upper metal brace, the doctor blade itself which is a very thin sheet of metal and the lower metal brace. Be very careful when handling the dr. blade as it is very easily bent.

21step

>

Remove the upper metal brace, being careful not to damage the alignment

pins. The pin on the left side is normally tight so more care should be taken there.

22step

>

Remove the Dr. Blade. Lift it out from the slot on the left side of the hopper.

Again, be very careful not to damage it. Clean the blade with a cotton swan and alcohol.

23step

>

Remove the developer roller.20step

>

Remove the screw and holder from the gear side of the developer roller.

Press in on the plastic tabs on the back side of the holder to remove it.

17step

>

R e m o v e t h e s c r e w , h o l d e r a n d contact from the contact side of the

developer roller. Press in on the plastic tabs on the back side of the holder to remove it. Be careful not to lose the contact!

18step

>

Remove the fill plug and dump out any remaining toner from the hopper.16st

ep >

Remove the gear from the fill plug area by pressing in on the tab.15st

ep >



Replace the screw, holder, and contact on the contact side of the developer

roller shaft.31st

ep >

Replace the developer roller into the cartridge. The long metal shaft side

goes to the gear side of the hopper.28st

ep >

Replace the cleaned Dr. Blade assembly in the hopper. Install the lower brace first inserting

the tail through the cartridge wall and under the copper contact. Install the Doctor Blade next making sure the lip is facing down and the blade fits over the alignment pins correctly.

26step

>

Replace the upper metal brace and the two screws. Clean the developer roller with a

clean lint free dry cloth. We do not recommend any chemicals be used at this time.

27step

>

Clean and replace the conductive grease on the developer roller and the

feed roller shafts.Note that the feed roller contacts also run to the Dr. Blade. This helps ensure that the toner is properly charged throughout the hopper.

32step

>

Replace the metal bushings on both sides of the developer roller shaft.29st

ep >

Replace the screw and holder on the gear side of the developer roller shaft.30st

ep > Fill the hopper with the Phaser 3100 toner.

Replace the fill plug.33step

>

Clean out any remaining toner from the hopper. Make sure to get the feed roller

and foam seals clean. It is not necessary to remove the roller, just make sure it is clean.

25step

>



Printing a test page:The simplest way to test a cartridge is to make a copy. To do this place the original face

down in the feeder. Press the copy key, number of copies desired and the start key.

Cleaning the scanner:If copied and transmitted pages come out with marks on the pages, but the reports are

clean, the scanner is dirty. To clean the scanner, open the scanner cover.

Wipe the scanner window down with a lint free cloth moistened with Isopropyl alcohol.

Repetitive defect chart

Mike Josiah is the East Coast Technical Director at Uninet Imaging. A global distributor of toner,

OPC drums, wiper blades and other supplies. An industry veteran since 1987, Mike is a member

of ASTM committee F.05, the STMC Technician Certification Committee as well as an STMC

trainer. He regularly contributes articles and teaches seminars at association meetings and trade

shows.

Mike Josiah

Install the drum cover if available. It needs to be taped in place. Use a

brightly colored tape so the user will notice it.37st

ep >

After the cartridge has been tested and bagged, tape the Key card to the top

of the bag so the user will see it. This key card is installed into the printer separately from the cartridge.

38step

>

Install the metal plates and screws.36step

>Place the two halves together and install the two metal pins.35st

ep >

Replace all the gears on the hopper as shown.34st

ep >

OPC Drum 75mm

Developer roller 50mm

PCR 29mm


Welcome to RechargRussia Expo 2011,Your Pathway to the Russian Aftermarket of Printing Supplies!

RechargRussia and RechargEast Magazines, well-reputed magazines specialized in the aftermarket of printing supplies in Russia and Eastern Europe, are happy to invite your company to take part in the VIIIth edition of RechargRussia Expo 2011, which will take place in Moscow, Russia, on May 18, 19, 20, 2011.

The RechargRussia Expos are traditionally organized in Moscow, which hosts this exceptional and unique event for the printing industry every year. The exhibition attracts thousands of specialists from the aftermarket of imaging and printing supplies. Owner, managers, technical specialists and salesmen from Russia and CIS countries are the main visitors of the exhibition.

RechargRussia Expo is the only professional event in the field of printing supplies organized in the Russian capital. Leading manufacturers and distributors of toner, inks, OPC drums, parts, remanufactured and compatibles cartridges all gather in Moscow each year to show their best products to the Russian aftermarket companies. Local distributors, resellers, rechargers come to the exhibition to get to know local and international exhibitors, get updates on market trends, start new and reinforce existing relationships and partnerships.

Our experience in organizing 7 consecutive specialized exhibitions in Russia is extremely valuable and can be used by your company to its utmost profit.

Feedback from the 2010 exhibitors:

Steven Yao, APEX, China: “The 2010

expo exceeded our expectations. We will

surely take part in the show in 2011 and

will probably choose to have a bigger

booth to display all our products”.

Angela Shekyls, SPEED INFOTECH

Holdings, Ltd., Russia/China: “The

2010 exhibition was good to our company.

We met many visitors from the last year’s

show. Although we didn’t get too many

new customers from the 2009 show, but in

2010 the prospects are looking good. This

year there have been much fewer end users,

but the number of distributors has grown.

In addition, we’ve had many visitors from

the far regions of Russia. We are definitely

interested very much in participating in the

expo in 2011.”

Ozlem Eris, IPM, Turkey: “In 2009

we established fruitful cooperation with

some Russian companies. In 2010 we are

expecting to make our position even stronger

in this market. All this happened with the

help of RechargRussia Expos. We are glad

that we participated in RechargRussia Expo

2010 and we have already reserved our

booth for 2011.”

Be in Moscow on May 18 and 19, 2011, when you will have the opportunity to attend the presentations of the 20 biggest buyers of compatible and remanufactured cartridges in Russia and CIS!

With the total annual purchasing power of over $250 million, these companies are the leaders in the market. Don’t miss the chance to meet them personally as they are always open to new mutually beneficial partnerships.

Russian companies buy remanufactured and compatible cartridges for over $586 million* per year. (*Source: Business-Inform, Russia)

Russia Market of Printing Supplies in 2004-2009

Russia Market of Laser Printing in under 45 ppm Segment

Year

Year

Qty, million units

Qty, original cartridgesQty, non-original cartridgesQty, refills

Genuine suppliesCompatible suppliesRefills

Market share (%)


RechargRussia Expo 2011 is your pathway to the Russia aftermarket of printing supplies!

Special exhibitor’s packages:• special ad discounts in both of the RechargEast and RechargRussia Magazine;• monthly mail distribution to all our Russian database (3,000+ companies): the emails include exhibitors’ profiles and hot offers;• monthly bulletins to all exhibitors full with important information about the Russian Remanufacturing Industry as well as large local buyers of compatible finished ink and toner cartridges.

Contact our representatives for more details.

In 2009 alone, over 6,000,000 compatible cartridges and over 34,000,000 remanufactured cartridges were sold in Russia.

OEM companies managed to sell just 9,200,000 cartridges.

The potential of Russia’s aftermarket of printing supplies is visible with an unarmed eye.

Is your company among the suppliers of spare parts for remanufactured cartridges or of compatible cartridges? Is your company in search of new markets? Is your company on the watch for opportunities?

Consider Russia - one of the fastest growing printing markets in the world!

We can take

you there:



Mirena Polihronova | [email protected]

Toby Tan | [email protected]

Alisa Andreeva | [email protected]

Trade Center “TISHINKA”, T-Modul • Moscow • Russia

issue9en1012

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