Off Road Navigation and Location-Based Photomarking & Blogging. 8/4/2005 The Best GPS is the one you have with you 1

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1 Off Road Navigation and Location-Based Photomarking & Blogging 8/4/2005 The Best GPS is the one you have with you 1

2 Always active Never lost, Trimble Outdoors TM The BEST GPS is the one you have with you

3 Background Its easy to get lost in the great outdoors Hiking, backpacking, biking, boating, four-wheeling, hunting, prospecting, etc. GPS use in outdoor recreation grew to nearly 3 million units last year as device costs fell below $100 People increasingly take cell phones into the outdoors for safety A cell phone without GPS and visa versa has limited use in an outdoors emergency You either know where you are but can t tell anyone about it Or you can call for help but can t tell rescuers where you are Trimble Outdoors leverages the inevitable convergence between location and communications 8/4/2005 The Best GPS is the one you have with you 3

4 Solution Overview Plan. Wirelessly send routes, maps, and way points to your GPS cell phone Experience. Leave your GPS receiver and digital camera behind Research Trips at Plan your trip with Trimble Adventure Planner Share. Review your trip at home and share details with friends online Take pictures with your picture phone and wirelessly send them to trimbleoutdoors.com 8/4/2005 The Best GPS is the one you have with you 4

trip notes, and maps to your phone View elevation profiles of your

5 Plan Trimble Adventure Planner Use Topographic, Aerial, or Street maps to plan your outdoor adventure Send routes, points of interest, trip notes, and maps to your phone View elevation profiles of your trip Print detailed maps 8/4/2005 The Best GPS is the one you have with you 5

strength of current satellite signals in use

street or topographic map Map Page (Aerial)

compass showing heading, altitude, speed and

6 Experience use you phone for outdoor navigation and communications Displays the strength of current satellite signals in use by the GPS Displays location on an aerial, street or topographic map Map Page (Aerial) Tracking Page Satellite Page A digital compass showing heading, altitude, speed and waypoint bearing Navigation Page Displays current location, bread crumb trail, waypoints and routes 8/4/2005 The Best GPS is the one you have with you 6

7 Take Your Adventure With 15 Nextel Phones Today Sleek flip phones i710 i730 i736 i830 i860 Rugged phones meeting Military standards Phones with out of network radios i58 i325 i355 Coming Soon i275 i265 i850 PDA phones i605 BlackBerry 7520 i836 8/4/2005 The Best GPS is the one you have with you 7

8 Share friends and family can follow your adventures online 8/4/2005 The Best GPS is the one you have with you 8

9 And now you can take the same trips done by the pros at Backpacker Magazine 8/4/2005 The Best GPS is the one you have with you 9

10 Understanding the Consumer Marketplace and what Consumers want from GPS 8/4/2005 The Best GPS is the one you have with you 10

11 Evolution of the recreational GPS market Marine Use first heavy adopter of handheld GPS in the early 1990 s Land Navigation Use second heavy adopter of handheld GPS use in the late 1990 s New categories last three years fitness portable car navigation Approximately million US consumers have handheld GPS equipment today 8/4/2005 The Best GPS is the one you have with you 11

What conventional GPS consumers expect today Portability Low cost Maps Durability Easy of use Long battery life Garmin Forerunner 201 Fitness activities 15 hour battery life $160 3 ounces Wrist mount

12 What conventional GPS consumers expect today Portability Low cost Maps Durability Easy of use Long battery life Garmin Forerunner 201 Fitness activities 15 hour battery life $160 3 ounces Wrist mount TomTom Go 700 Car Navigation 5 hrs battery life $ ounces Magellan Explorist 500 Outdoor Nav 17 hrs battery life $400 6 ounces Fitness, Car Navigation, & Outdoor Navigation are the hottest GPS categories today 8/4/2005 The Best GPS is the one you have with you 12

13 The GPS market is reaching a fork in the road GPS cell phones can accomplish what dedicated devices once did Far lower costs if you already have the phone More portable Less to carry More convenient data access via wireless Newer cell phones will transform the GPS experience Mega-pixel cameras with a quality lens Hard drive storage Multimedia graphical UI Streaming video reception Wireless bandwidth to move deep content to/from the phone 8/4/2005 The Best GPS is the one you have with you 13

14 Trimble Outdoors example Generation One October 2004 Provide a new kind of GPS experience Similar basic GPS navigation features to conventional GPS units Wireless upload/download of trip data for ease of use GPS marked photos and trip notes Provide more map content enabled by wireless access Web community elements Generation Two In Beta Test Now Add additional dimensions to the experience Video and audio clip GPS waypoints Get any map at any scale on the fly (topo, street, aerial) Upload and download tracks Full GPS marked text and audio blogging Rich web content Backpacker outdoor epics 8/4/2005 The Best GPS is the one you have with you 14

15 Adoption & Usage Trends in the US 8/4/2005 The Best GPS is the one you have with you 15

16 Handsets are already impacting standalone devices Sales of handsets with digital cameras surpassed digital camera sales in 2004 Sales of standalone PDA s have declined for the last year handsets are poised to make a serious run at MP3 players No electronic product in history has been produced in higher volumes this is the convergence enabler Why would GPS devices be immune? 8/4/2005 The Best GPS is the one you have with you 16

17 Consumer awareness is the biggest hurdle today Widespread availability of GPS phones is essentially here Nextel leads the World today with full line of highly capable GPS phones that the US business customer is coming to accept and Expect Sprint and Verizon are both nearing availability of capable GPS phones GSM handset manufacturers are dabbling in GPS phones now (Nokia 5140, Siemens SXG 75) New operator business models are not required One time fee like a game or ring tone download Recurring fees like incremental data services It s all about marketing now.. 8/4/2005 The Best GPS is the one you have with you 17

18 GPS Handset Adoption not if but when The conventional portable car navigation segment is expected to peak in 2006 at volumes of 3 to 4 million units/year and then yield the volume market to wireless handset solutions (Strategy Analytics Portable Navigation Hitting a Dead End, June 10, 2005) The GPS fitness market is very young but holds great promise with market expansion beyond competitive athletes there are 50 million Americans involved in doctor ordered exercise and they either take their handsets or walkman with them today The outdoor recreation GPS market will be dominated by handsets by 2007 Product bundles will drive faster adoption with bundled pricing at around $10/month including data access 8/4/2005 The Best GPS is the one you have with you 18

19 The Trimble Outdoors subscriber base is amazingly diverse today illustrating the power of the GPS handset Vs conventional GPS User Activities For Trimble Outdoors Geocaching 4% 10% 11% Hiking, Backpacking, Trekking Hunting 2% Cycling or Mountain Biking 6% 19% Flying, parasailing, paragliding Water sports: boating, canoeing, fishing, rafting, or paddling 12% Winter sports: skiing, crosscountry skiing, or snow mobiling Off road ATV and 4x4 driving or motorcycling Camping 3% 12% Climbing 14% 3% 4% Trail running Prospecting or Treasure Hunting 8/4/2005 The Best GPS is the one you have with you 19

20 Conclusion My prediction: By % of US wireless subscribers are paying something to a wireless operator to do something with GPS location on their handset Translation 60 to 90 million Americans navigating on road, navigating off road, measuring fitness improvements, playing games, finding friends, tracking employees, etc $4 to $8 billion in incremental revenue for US operators 8/4/2005 The Best GPS is the one you have with you 20

21 Rich Rudow Managing Director Trimble Outdoors 8/4/2005 The Best GPS is the one you have with you 21

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