Steve Winter President & COO Bear Stearns – 2006 Technology Conference

 

Safe Harbor Statement Statements in this presentation that express the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Specifically, we may be discussing new investments, emerging technology, shifts in our industry and market leadership. A more complete description of what the Company considers to be forward looking statements is contained in the Company’s press releases and in its SEC filings, including the Form 10-K for the year ended December 31, 2004, filed March 2005. Copies of these filings may be obtained by contacting the Company or the SEC.

 

Intermec – Who We Are Intermec provides expertise, products and services that provide customers the ability to identify, track, and manage critical company resources, making business transformation a reality. What Is Intermec?

 

Leadership And Experience Intermec serves thousands of companies worldwide, including: 75% of Fortune 500 companies 60% of the Fortune 100 A worldwide leader in automatic identification and data collection (AIDC) Approaching $1B in sales 40 years in the AIDC industry >17,500 warehouse solutions installed worldwide >250,000 in-cab solutions installed worldwide Extensive experience at solving real-world mission-critical business problems

 

Industry / Application PrioritiesApplication Focus Industrial Goods Consumer Goods Retail Government Transportation & Logistics Target Vertical Markets

 

The World’s Most Complete Line Of Supply Chain Products And Services

 

Strong Alliance Partners

 

ADC Innovation Leader Inventor Of Code 39 1st Portable Scanner Wireless LAN Pioneer Bluetooth Scanning 1st Data Collection Pocket PC Fuel Cell Technology Smart Battery RFID Leader 1st Modular Pen Computer MEM’S Scanning

 

Mobile Computers Wide range of mobile computers for use throughout the Enterprise #1 supplier of rugged PDAs #1 supplier of rugged fixed mount computers Investment protection through industry standards -based designs New technologies to address longstanding business problems RFID Modular Wireless Mobile Computers and Terminals

 

Data Capture: Scanning Technology Cutting-edge technology developed by Intermec MEMS LaserLinear Imaging Area Imaging RFID Bar Code Scanning

 

Snappier scanning & improved aiming 10 – 12x faster read rates Longer product life Solid state circuitry Compact form factor Mirror is 1/66th the size of a traditional motor & mirror Easier to Use Aiming Dot – higher user satisfaction and performance Next Generation Laser Scanning Intellibeam Laser Scan Engine

 

Intermec Linear Imagers Superior performance rivaling lasers Cost competitive Hands free Intermec Area Imagers Intermec’s own 2D imager design Incorporate superior linear imaging technologies New application possibilities Imagers Growing Faster Than Lasers

 

Basic PerformanceMid PerformanceHigh PerformanceIntermec Scan Modules EV10EA15 RFIDImagingEL10EL15EL11EL20EL30EA10 EA11 EA25 EV15IM5IM4MEMS Laser

 

Intermec Leading RFID Innovation RFID standard Generation 2153 RFID Patents Granted To Date RFID more powerful when used with other ADC Technologies Fixed and portable readers, printers, tags and services

 

Intermec’s IP Licensing 20 Intermec RFID IP Rapid Start Licensee’s announced on September 7, 2005 Symbol Technologies Zebra Technologies Avery Dennison Toppan Printing AWID ThingMagic Cisco Paxar SAMSys LXE Accusort Metrologic Feig Texas Instruments Datalogic Psion Teklogix EM Micro Datamax Sato HHP Rapid Start

 

Intellectual Property Industry Leader 153 RFID patents Since 1996 Intermec has over 25% of all ADC patents issued Long life remaining on IP Portfolio Over 700 PatentsBattery Management7%Scanning24%Other5%RFID21%Printers13%Wireless30%0501001502002500-2 3-56-89-1112-1415-17> 17 Remaining Age of PorfolioTotal Intermec Patents

 

RFID Opportunity for Intermec IP Licensing Smart Tags Primary Infrastructure Installation - Integration Services Pull-along business potential Intermec is uniquely positioned to benefit from five potential revenue streams in RFID

 

Awarded Case-Level RFID trials Also selected Intermec portal enclosure Leading position in Metro’s roll-out plans Intermec - Gen2 Compliant “We have a clear commitment to be the technology leader. We need technology vendors with the same strategy. We believe in Intermec’s capabilities” - METRO Group METRO Group

 

DoD Sets Sunset Timeline All Suppliers required to ship only Gen2 tags Gen1 (Class 0 / Class 1) sunset by 10/1/06 October 1, 2006

 

Barcode & RFID Printers, Tags & Media Wide range of printers and media Intermec Smart Printing capability Intermec RFID printers RFID tags, labels and inlays RFID deploy integration services Barcode Printers RFID and Media

 

Wireless Network Intermec partners with Cisco Cisco AP Features Best-In-Class partner Service and Support Intermec Solutions

 

Intermec Annual Revenue Growth Forecasted range FYE 2006 Does not include revenue from IP settlements and Sales $ in Millions $500$550$600$650$700$750$800$850$900$950$1,00020022003200420052006 (Est.)

 

NAS 63% EMEA 27% Asia 4% Latin America 6% System Solutions 56% Printer/Media 26% Service 18% Product & Service Mix – Q1 FY2006 North AmericaEMEALatin AmericaAsia PacificSystem SolutionsPrinter/MediaServices

 

Fiscal 2006 Strategy Maintaining above Market Growth and Operating Margin leverage Continuing High Priority Investments RFID Emerging Markets Printer / Media Improving Productivity - Increasing Operating Margins Global IT focus / simplifications Customer Service Streamlining Technology Leadership to Market Leadership

 

Intermec – Financial Model $0.78 - $0.87 $0.59 EPS (GAAP) $50M - $56M $40M Net Income$75M - $84M $54M EBT$948M -$978M $875M Revenues FYE 2006 (Forecasted) FYE 2005 (Actual) GAAP – Includes stock options and ESPP expenses

 

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