Overview and Opportunity Assessment

1
Overview and Opportunity Assessment
2
Agenda

• The Facts
• The Problem
• Industry Inertia
• The Solution
• PowerSnap Overview
• Why Its Better
• Business Model Opportunities
• Company and Team Overview
• Investment Opportunity

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Fact The Digital Camera Market is Growing

• Last year, 25 billion digital photos were saved
  to PC hard drives around the world. - Lyra
  Research, 2003
• After overtaking global film camera sales last
  year, digital cameras are expected to be found in
  a third of U.S. households in 2004, up from a
  fifth of households in 2001 - CEA Market
  Research
• "Nearly 15.3 million digital cameras are expected
  to be shipped in 2004 with total sales topping 4
  billion." - CEA Market Research

4
Fact The Digital Camera Market is Growing
Numbers courtesy of Digital Photography Review
5
Fact Consumers Need Better Software

• "For the people likely to buy extra software,
  most of what they said they wanted was file
  management--they were inundated with JPG files
  and needed a way to organize them." - Andrew
  Johnson, Gartner
• "Many people are on to their second digital
  cameras and taking loads of pictures. Organizing,
  editing, creating, sharing, and archiving, those
  are the basic needs that people need to fulfill."
  - Michelle Richardson, Microsoft's product
  manager for Digital Image software
• "For the vast majority of camera users, there
  really isn't one product that addresses all their
  needs," - Tapan Bhat, group product manager for
  Adobe

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The Problems

• What Frustrates Digital Camera Users?
• Inadequate Organization Capabilities
• Inadequate Sharing Abilities
• Lack of Useful Features

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The Organization Problem

• Digital camera users take many more pictures than
  film camera users
• Finding specific pictures is nearly impossible on
  a computer flooded with photos
• Software bundled with cameras has inadequate
  organizing capabilities
• Consumers typically create confusing and complex
  folder structures and manually copy photos to
  them
• Backing up and archiving is problematic

8
The Sharing Problem

• Sharing is inherently stifled by an inability to
  organize
• Sharing depends solely on locating the right
  files. You need to be able to group what you want
  to share
• Even if youve found the right files, you still
  need tools to share them right then and there

9
The Sharing Landscape

• People currently share photos over the internet
  using
• Emails with the image file attached
• One-size-fits-all portals such as Yahoo! Photos
• Online photo storage, print and merchandise shops
  such as OPhoto, Shutterfly, Snapfish,
  ImageStation
• Websites
• Photo sizes must be optimized for before
  emailing
• Portals and online photo shops are potential
  partners and welcome complete solutions
  addressing consumer desktop issues

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The Features Problem
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Industry Inertia

• The major players are growing, but
• theyre all priced around 50 (Picasa is a
  recent exception)
• theyve not fully addressed the organization
  needs
• they require a lot of manual end user tagging

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The Solution

• Consumers need a single desktop application which
  allows a users to effectively
• Organize
• Share
• Archive
• Touch up
• Showcase

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Introducing PowerSnap

• www.powersnap.com
• Released in October 2004

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PowerSnap Features Today

• Organization
• Familiar and intuitive Windows Explorer-like
  interface
• Rapid photo-to-album associations
• Intelligent rule-based albums
• Automatic organization with Power Browse
• Archiving of organized photo collections instead
  of just files
• Automatically maintained timeline
• Search
• Clean separation using collection notion

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PowerSnap Features Today

• One-Click Sharing
• Create professional Flash and HTML websites
• Generate websites, not pages cross link across
  all selected albums, timeline, and folders
• Display PDF slideshows
• Email size-optimized photos
• Display entire photo collections with
  organization intact
• Publish websites to ISP

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PowerSnap Features Today

• Application
• Professionally written online help
• Raw image format support
• Available for Windows, Mac and Linux
• One-click effects application including
• Watermark
• Borders
• Color tints
• Photo browser with multiple user interface views
• One-click viewable slideshow
• Synchronization with external changes
• Rotation

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PowerSnap Features Tomorrow

• Organization
• Compare photos
• Auto rotate based on EXIF
• Graphs
• One-Click Sharing
• Create Flash and HTML websites
• Display with Flash slideshow
• Display Flash storyboard
• Print photos on local printer
• Email collage
• Integrate with default mail client on desktop
• Application
• Basic image enhancements Crop, Brightness,
  Contrast, Sharpness, Color Control, and RedEye
• Open in third-party applications

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Why PowerSnap Is Better

• Differentiating Features Will Attract
• People serious about organizing and frustrated
  with current tools
• Amateur photographers drawn by RAW image support
  and Power Browse
• Users wanting easily generated, professional
  looking websites
• Mac and Linux users frustrated by their limited
  platform choices
• More For Less
• Two years of free upgrades
• User community-driven product development
• Introductory price set at just 24.99!

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Why PowerSnap Is Better
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Business Model Opportunities

• Integrate with online photo shops like
  Shutterfly, Ophoto, and Sony ImageStation
• Partner with smaller vendors for co-branding
  websites to generate prints/merchandise under the
  PowerSnap banner
• Follow the blogger/blogspot model by creating a
  hosting service that stores generated websites in
  a paid subscription model
• Extend product to share from desktop over a
  web-based service hosted by PowerSnap for images
  stored and pulled from a users machine
• Add CD burning capabilities to create photo
  DVDs/VCDs while using PowerSnap

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Business Model Opportunities

• Use the core organization engine to build a
  parallel web-based product for businesses wherein
  multiple users can organize, upload and publish
  images
• Ship multiple language versions for
  internationalization, including Japanese,
  Chinese, and Indian markets and French and
  Spanish versions
• Position for a potential buyout by
• Major ISPs
• Digital camera manufacturers
• Online photo shops
• Imaging or digital asset management software
  companies looking to extend their product line

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Technical Specifications

• Built using Swing (Java)
• Open Source Products used
• HSQLDB A Pure Java Embedded Database Engine
• Apache Commons
• iText for PDF
• Velocity