| Product Repositioning | All-In Update | CEDIA Wrap-up |




DP Product Repositioning

With the introduction of our new iVision 20 series and the VIP 1000 video image processor, Digital Projection's product range has taken a big step into broader market opportunities. As exciting as these new entry-level products are for us, we constantly work to innovate and position our entire product lineup, such that DP precision displays always provide the absolute best-in-class value.

To drive that point home, earlier this month we introduced new Commercial AV pricing, dated October 3, 2005.

Upon review of the new pricing, you will find that along with the addition of the new iVision 20 series products, important re-positioning of a number of existing DP models has occurred. Take special note of the new pricing for the iVision HD, dVision HD and Mercury HD/5000HD products. All have been significantly reduced! Our goal is to extend your ability to promote DP solutions into a growing range of applications and venues. As technology evolves and engages more customers, it is vital we all participate in the resulting market growth.

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ALL-IN sales registration forms continue to flow into Digital Projection and in return, the chips and cash are flowing right back out. Although we are tracking good participation and we are just four months into the promotion, we know for a fact there are a lot of dealer salespeople who have made qualifying sales, but have not yet registered those sales and claimed their SPIFF $'s and their chips . If you are one of those salespeople, don't leave that money and those chips on the table make sure you claim your ALL-IN rewards!

Keep in mind, there are still 8 months left in the ALL-IN promotion, meaning there is plenty of time for every DP Commercial AV Dealer sales associate to close lots of additional ALL-IN qualifying business, earning big SPIFF rewards and perhaps even a seat at the final table of our ALL-IN poker tournament.

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CEDIA Wrap-Up

CEDIA gathered a record number of attendees at this year's exposition in Indianapolis. The attraction to the event is compelling, as CEDIA offers extensive training in both technical and business curriculums for its members, as well as the industry's largest tradeshow for high-end residential electronics. Attendance increased by over 1000 people from last year, for a total of more than 26,000 industry professionals at the event in 2005.

For Digital Projection, our exhibit provided both a challenging and exciting demonstration. We configured a 6 of our precision displays in a very modest 20'X30' booth (the biggest booth space we could secure from CEDIA). Our 16' wide marquee screen featured a 3-projector blend of Mercury 5000HD's, presenting dynamic windows of high definition video content, along with PC based flash media and computer graphics. This mega media wall employed a Vista Spyder as the source processor.

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