Technology and Product Innovation Symbol Technologies Moscow, 26 th October 2006 Marco Landi Senior Director, Head of EMEA Marketing. - презентация

1 Technology and Product Innovation Symbol Technologies Moscow, 26 th October 2006 Marco Landi Senior Director, Head of EMEA Marketing

2 Thank You For Your Business Established Market Leadership 33.3% #1 – 2005 Source: VDC Small Rugged Mobile Computers 26.3% #1 – 2005 Source: VDC Handheld Bar Code Scanners #1 Wireless Switching – 58% Enterprise WLAN Infrastructure 14.3% #2 – 2005 Source: Synergy Research RFID Readers 41.0% #1 – 2005 Source: VDC* *Symbol Internal Analysis of VDC Assessment

3 GPG Initiatives Focus on innovation Make it easier for the channel to do business with Symbol Increase market share across all geographies Develop best products in all categories Implement world-class PLM process Finalise RoHS transition

4 Innovation

5 A History of Innovation 1980 First Handheld 1978 LaserChek 1990 Spectrum One Wireless Switch 2003 MC9000-G RFID 2004 MSP 2005 MC MC70 VC st

6 Investing in Innovation 1,000+ mobility-centric patents 1999 – Symbol Technologies awarded the National Medal of Technology 8.3% Symbol 7.7% Average of nearest competitors R&D spending as a percent of revenue

7 Innovation: Growth Engine Over 450 New Patents in the Last 3 Years Number of patents issued XX

8 Innovation Update Investing in Innovation Added $10M specifically for development of exploratory product innovations An additional 40 engineers focused on advanced development initiatives

9 Making It Easier to Do Business with Symbol

10 Standard Country List Regulatory Approvals USA Canada American VI Anguilla Bolivia British VI Cayman Islands Columbia Deutsch Antilles El Salvador French Guinea Guadeloupe Guatemala Guyana Martinique Panama Puerto Rico EU Countries with Regulatory Approvals at Rev. A + Hong Kong South Korea Taiwan Malaysia Singapore China India Pakistan Thailand Philippines Indonesia Mexico Brazil Chile Argentina Barbados Costa Rica Dominican Republic Ecuador Nicaragua Paraguay Peru Uruguay Venezuela Honduras Jamaica Trinidad and Tabago Russia U.A.E South Africa Israel Turkey Romania Ukraine Saudi Arabia Croatia Egypt Serbia Montenegro Macedonia Bulgaria Lebanon Belarus Japan Australia New Zealand Falklands Islands Norfolk Island Niue Island Mariana Island Guam Christmas Island US/ AI APAC Other Critical Countries That Will Receive Regulatory Approvals Post Rev. A Austria Belgium Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Latvia APAC + AI EMEA + Liechtenstein Lithuania Luxembourg Malta Netherlands Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland UK Countries Added to the Standard Country List

11 Symbol Solutions Centre Located at Symbol Headquarters in Holtsville, NY and Winnersh, England Symbol investment in partner and customer community All global customers and partners eligible Comprehensive solution validation environment Solution Centre Offerings Solutions Validation Program Testing and integration Solutions architecting Proof-of-concept Product compatibility testing Porting/migration support NOW AVAILABLE IN EMEA Open in Winnersh

12 Investment Protection

13 1981: MS DOS 1.0 – 2000 PC DOS : Microsoft Windows NT : Microsoft Windows for Workgroups : Microsoft Windows Workstation : Microsoft Windows NT Workstations : Microsoft Windows 2000 Professional 2001: Microsoft Windows XP Professional Edition 2001: Microsoft Windows XP 64-bit Edition 2002: Microsoft Windows XP Tablet PC Edition Nov Microsoft Windows Vista 2006 A Look Back at the PC Industry Months Pace of Innovation OS and Application Compatibility Enterprise Standardization Price/Performance Curves Service and Support Costs Technology is Standards-based Enterprise Challenges 1981

14 1981: MS DOS 1.0 – 2000 PC DOS : Microsoft Windows NT : Microsoft Windows for Workgroups : Microsoft Windows Workstation : Microsoft Windows NT Workstations : Microsoft Windows 2000 Professional 2001: Microsoft Windows XP Professional Edition 2001: Microsoft Windows XP 64-bit Edition 2002: Microsoft Windows XP Tablet PC Edition Nov Microsoft Windows Vista Months Pace of Innovation OS and Application Compatibility Enterprise Standardization Price/Performance Curves Service and Support Costs Technology is Standards-based Enterprise Challenges A Look Back at the PC Industry

15 History Repeating Itself in Enterprise Mobile Computing : MS DOS 1.0 – MS DOS : Windows CE 1.0 – CE : PC DOS : Pocket PC (Powered by Windows CE 3.0) 2002: Windows CE : Microsoft Windows Mobile : Microsoft Windows Mobile nd Edition 2004: Microsoft Windows CE : Microsoft Windows Mobile 5.0 GSMCDMA EDGE s : Intel : NEC V25 Processor Family : ELAN : StrongArm : Intel XScale PXA : Intel XScale PXA : Intel XScale PXA3XX Pace of Innovation OS and Application Compatibility Enterprise Standardization Price/Performance Curves Service and Support Costs Technology is Standards-based Enterprise Challenges GPRS

16 s Pace of Innovation OS and Application Compatibility Enterprise Standardization Price/Performance Curves Service and Support Costs Technology is Standards-based Enterprise Challenges : MS DOS 1.0 – MS DOS : Windows CE 1.0 – CE : PC DOS : Pocket PC (Powered by Windows CE 3.0) 2002: Windows CE : Microsoft Windows Mobile : Microsoft Windows Mobile nd Edition 2004: Microsoft Windows CE : Microsoft Windows Mobile 5.0 GSMCDMAEDGE : Intel : NEC V25 Processor Family : ELAN : StrongArm : Intel XScale PXA : Intel XScale PXA : Intel XScale PXA3XX GPRS History Repeating Itself in Enterprise Mobile Computing

17 PLATFORMING Common Hardware Architecture Common Software Platform Common Management Platform Application Architecture to Enable Portability through OS Releases Application Portability across Multiple Mobile Form Factors through Common OS and APIs Reliable and Scalable Service Model Rapid Deployment and Consistent Management Interfaces to Enable Scalable Support VOICE OF CUSTOMER Platforming provides application portability without compromising ergonomics: MC70 & MC9090 built on common HW and SW platform – SW image consists of ~175,000 files Only twelve are different! Symbol and Platforming Stable Devices and Application Enablement

18 Product Roadmaps

19 Mobile Computing Key Market Drivers 1. Mobility solutions are shifting to enterprise-wide strategies. 2. Mobility solutions are accounting for more of IT budgets; 4-5% in 2004/05 to 8-9% in 2006/ Standardisation of mobile OS, software, and wireless is lowering adoption cost and overall cost of ownership. 4. Major IT integrators and carriers are investing significantly in mobility solutions and developing enterprise mobility practices. MCD Total Addressable Market, % 05 – 10 Growth Rate Source: Symbol Market Intelligence, Venture Development Corporation, Allied Business Intelligence, Dell Oro Group, IDC $3,013 $3,287 $3,730 $4,211 $4,617 $5, $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

20 Market-Focused Product Strategy 2006 Roadmap – Q1 07 MC9090 MC1000 MC50 VC5000 MC3000 Gun MC9060/MC9090 I-Safe/Voice Direct/RFID PPT8800 MC70 Industrial MCEnterprise MCApplication-specific WT4000 SPT1800/1550 EOL -Non-RoHS SKUs MC3000 Mid- Market Value Premium

21 Symbols Newest Mobile Computer: WT4000 Series 7.11 cm color VGA display with backlight PLUS… Lighter weight Longer battery life Bluetooth Voice-directed application-ready Microsoft CE 5.0 OS Intel xScale Bulverde processor a/b/g

22 Advanced Data Capture Key Market Drivers 1. Manufacturing and retail continue to comprise the majority. Strong growth is being realised in the emerging healthcare and services sectors. 2. Retail upgrade opportunities for handheld scanners due to replacement cycles. The refresh cycle started in 2004 and is expected to continue for the next few years. 3. Logistics processes are increasingly automated to provide efficient item tracking in distribution environments. 4. Cordless Scanners and Digital Imagers continue to gain momentum and will be key growth drivers. ADC Total Addressable Market, % 05 – 10 Growth Rate Source: Symbol Market Intelligence, Venture Development Corporation, Allied Business Intelligence, Dell Oro Group, IDC $1,266 $1,361 $1,455 $1,554 $1,659 $1,776 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,

23 Advanced Data Capture The Most Complete Product Portfolio in the Industry PD8700/05 DS6600 DS6700* LS2208 LS9208 MK2200 MK1200 LS7708 DS3408 Series LS3408 Series LS9203 LS4208 LS1203 PD4750 M2000 Phaser LS3478 & DS3478 Series LS4278 PD4700LS3008 LS7708 Mid- Market Value Premium Micro Kiosk Payment Hands-free Scanning Rugged Scanning Handheld Scanning

24 A Profitable Product Portfolio $ LS4208 and LS4278 Premium Scanning Corded and Cordless LS3008 Rugged Scanning DS6700 Digital Imaging

25 1. Investment in applications that increase the security, manageability and business value remain high. 2. Adoption of application support for IP voice and video will act as deployment driver for broader deployments. 3. WLAN deployments continue to top the list of network investments, accounting for a large share of a company's spending. Key industries include manufacturing, education, healthcare, professional services and retail/hospitality. WID Total Addressable Market, Wireless Key Market Drivers $1,042 $1,477 $1,816 $2,305 $2,831 $3,538 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Source: Symbol Market Intelligence, Venture Development Corporation, Allied Business Intelligence, Dell Oro Group, IDC 27.7% 05 – 10 Growth Rate

26 Client Products Client Access – LA4137/5137 (compact flash) Client Bridge – CB3000 Management Solutions Comprehensive Infrastructure Management – MSP Legacy Infrastructure Management – SEMM RF Planning – Symbols RF Management Solution Security – Wireless Intrusion Protection System (IPS) Symbol Wireless Portfolio Wireless Switches Large Enterprise – WS5100, WS5120 (IBM Blade Center) SMB, Branch Office – WS2000 WS5100 WS2000 AP a/b/g AP a/b/g LA 4XXX/5XXX CB3000 W-IPS Symbols RF Management Solution MSP Lightweight and Full Function Access Points Lightweight – AP300 Full Function – AP5131 Mesh – AP5131

27 AP5131 – AP5181 NEMA 4; IP 66 weatherproof housing Extended temperature range (-50 – +55 deg C) Protective heavy-weather mounting kit (210 km/h windblown debris) Light pole power transformer kit ( V) Dual-band outdoor antenna suite Enterprise-class, a/b/g solution for branch offices and hotspots (network-in- a-box) Easy to deploy and highly manageable Delivers comprehensive security with support for integrated firewall, site-to-site VPN and WPA2 (802.11i) AP5131 Inside AP5181 Outside

28 Expands the boundaries of Wi-Fi deployment Layer 3 and wireless Supports RF Abstraction Hardware-independent-enabled to support evolving RF technologies Mesh, FMC, n, WiMAX Supports the integration of third-party applications Creates consistency of platforming across the switch portfolio RF Abstraction ScalabilityModularityInnovation + Wi-NG Architecture ++ RF-agnostic Platform = Introducing Wi-NG: Next-generation Wireless Operating System WS5100 Q4

29 1. Supply chain goals will drive RFID requirements. 2. The industry is coming out of RFID hype mode with skepticism turning to optimism. 3.Item-level tagging and asset management are key to growth. 4. The industries will diversify expanding from a myopic focus on CPG and retail. Aerospace, defense, logistics and pharma are ripe for adoption. 5. Deployments with positive ROI are growing rapidly. Source: Symbol Market Intelligence, Venture Development Corporation, Allied Business Intelligence, Dell Oro Group, IDC 46% 05 – 10 Growth Rate RFID Total Addressable Market, RFID Key Market Drivers $66.3 $67.5 $99.6 $207.6 $323.9 $433.9 $0 $250 $

30 Alien Technology Intermec Technology Thing Magic LXE Symbol Technologies Tagsys Sirit Technologies Magic Quadrant for RFID Generation 2 Equipment, 2006 challengers visionaries ability to execute Impinj Symbol has a strong vision for where it is taking the RFID market. Symbol…the RFID Market Leader Jeff Woods Research VP Source: Gartner (July 2006) niche players Completeness of Vision As of July 2006 leaders

31 RFID Infrastructure Products 2006 – Early 07 Roadmap LA 4XXX/5XXX Forklift / Mobile Antennas Handheld Fixed Reader EU APAC North America MC9000 AN400 Global XR400/440 US, Canada Forklift US, Canada AN480 EU, Japan (Q4 2006) XR480 – 8 ports EU, Japan MC9000 H Forklift 2007 AR400/XR400 Asia AN200 Outdoor US, Asia MC9000 Select Countries Forklift Select Countries

32 RD5000 The Mobile RFID Reader Built on mobile computing platform Rugged, compact, mobile RFID reader Integrates with material- handling equipment Extends the range of RFID beyond the dock door Create a forklift solution with the VC5000

33 Thank You