Hanover, MA…May 2004 The wide format graphics market generated total manufacturers’ revenues (at the retail level) of $6 billion in 2003 and is expected to generate manufacturers’ revenues of $9.4 billion in 2008, a CAGR of 9%. The market is becoming increasingly competitive as new product categories, such as eco solvent and flatbed, compete with aqueous printers for PFP dollars. I.T. Strategies forecasts revenues for wide format ink jet hardware, media and ink for three primary technology categories: Aqueous, Solvent and Flatbed wide format ink jet printers. Total wide format graphics market revenues for hardware, media and chemistry are growing from $6 billion in 2003 to $9.4 billion in 2008, a CAGR of 9%. - Total hardware revenues will grow from $1.3 billion in 2003 to $1.4 billion in 2008, a CAGR of 1%. In terms of total market share, hardware revenues will decrease from 22% in 2003 to 15% in 2008, driven by declining hardware prices. - Total media revenues will grow from $2.4 billion in 2003 to $4.1 billion in 2008, a CAGR of 11%. In terms of market share, media revenues will increase from 39% in 2003 to 44% in 2008 driven by the increasing use of specialty media such as vinyl, fabric, canvas, etc. - Total ink revenues will grow from $2.4 billion in 2003 to $3.9 billion in 2008, a CAGR of 10% driven by the increasing installed base of printers. According to Mark Hanley, President of I.T. Strategies, “Some may look at the market as mature and in some ways it looks like that from a vendor’s point of view. The wide format graphics market satisfies a fundamental print function that is driven by economic factors relating to the larger economy, i.e., advertising. The market has an unusually rich capability to grow through diversification and customized value creation. It is made up of many highly valuable, unique applications which have yet to be fully exploited and further growth will also come from the 75% of high-volume display graphics that are still analog printed. Some large part of this is also available to digital printing. The way I see it, the wide format market is far from mature.” Total Revenue Forecast Comparison by Print Segment Total wide format graphics revenues for hardware, media and chemistry are forecast to grow from $6 billion in 2003 to $9.4 billion in 2008, a CAGR of 9%. In 2003, 70% of wide format graphics revenues ($4.2 billion) is generated by aqueous printers. By 2008, aqueous printers, with revenues of $5.4 billion, will make up 58% of market revenues. Solvent printers will increase from 26% of revenues ($1.6 billion) to 35% of revenues ($3.3 billion). Flatbed printers will grow from 4% of the market ($222 million) to 7% ($613 million).