| 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.

On October 3rd , DP's Commercial AV Dealers and Stagers each received an email from DP, announcing the new pricing and providing access to the secure area of our web site. Once there, DP Dealers and Stagers can view and download PDF's of the new, Oct 3, 2005 pricing. If you are a DP Commercial AV Dealer or Stager and you did not receive the updated pricing email, please contact your DP RMDM or customer service representative. Upon verifying your status as a DP Dealer or Stager, we will take immediate steps to get you the pricing, and add you to our confidential pricing distribution list.

If you are an end user or a consultant and you would like a copy of our newest list pricing, contact us and we'll be happy to make it available to you.


All-In Program Update

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.

The dealer associates who have already gone “ALL-IN” have told us that this is the most innovative and exciting program they have ever participated in. Remember, every qualifying commercial P.O. with a projector on it earns the registering Dealer salesperson 1% of the P.O. total in cash SPIFF $'s. Poker chips are also distributed, which qualify you for DP's ALL IN poker tournament that will be held at info Comm 06 in Orlando next June.

For more information on the ALL-IN promotion, click HERE


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.

Inside the booth, viewers enjoyed high definition images in both 720P and 1080P, from Windows Media based PC servers that DP built in-house. These servers, affectionately named “digiputers” by DP's staff, provided the high definition content displayed by our dVision HD, the popular Mercury HD, and our flagship HIGHlite 10000 HD. The displays projected onto two electric aspect-ratio changing screens, provided by Stewart Filmscreen. It is interesting to note, The HIGHlite 10000 HD was the only commercially available 1080P 3-chip DLP projector demonstrated at CEDIA.

Also announced and presented at CEDIA were DP's new VIP 1000 video processor and our new single-chip iVision 20 HD. At $6495 list, the iVision 20 HD is the most affordable projector offered by Digital Projection. Even at this incredible price, it delivers state of the art performance utilizing Texas Instruments 1280 X 720 DC3 chip, and offers extreme installation flexibility through an on-axis design with extensive vertical lens shift.

Outside the DPI booth, the show floor buzz was around 1080P. Texas Instruments offered technology demonstrations of both single-chip 1080P and small platform 3 chip 1080P. Images from both projectors were truly outstanding! The single chip 1080P employed some new color wheel developments that greatly reduced “rainbow” effects. Several consumer manufacturers also demonstrated 1080P rear projection sets in sizes up to 70” diagonal.

Unfortunately, native 1080P content is still sorely absent. Blue ray and Hi Def DVD did not make it in force to Cedia, although the products are still predicted by some to be in the states by the holidays (let's hope that prediction proves to be true). In the meanwhile, Microsoft has posted a number of 1080P movie clips, available for download, on their Windows Media site, but you'll need a fast computer to properly view them.

CEDIA showed some evidence that anamorphic lenses are making a comeback, not to make 4X3 projectors produce 16X9 imagery, but to make 16X9 projectors produce 2.35 imagery! There were several demonstrations of 2.35 aspect ratio displays with anamorphic lenses on the show floor. Static and motorized anamorphic lenses are currently being added to DP's product lineup, suitable for all Digital Projection products including the Mercury, iVision and dVision series. Call your RMDM for more information.

All in all it was a wonderful event for everyone who attended the CEDIA Expo in Indianapolis. The Digital Projection booth was very active, visited by many of our new home cinema enthusiasts, as well as those who have joined us for the 4th straight year. We enjoyed seeing old friends and meeting our newest customers. We all look forward to next year when the Expo moves to the Denver convention center Sept. 13-17.


TECH TIPS

dVision Security Features

The dVision series projectors contain an optional security feature requiring activation by a PIN (Personal Identity Number) code. The PIN code is 4 digits, and if the security option is activated on the projector, when the unit is powered up, the correct PIN must be entered to operate the projector. Activation of the security feature is accessed through the “UTILITIES” tab in the dVision menu structure.

The initial PIN code for each dVision is detailed on an instruction sheet that is included with the user manual in the projector accessories box. We recommend you retain these instruction sheets and the PIN code for future reference.

If the security feature is activated by the user and the wrong PIN code is entered 3 times in a row, a “PUK” (unlock) code is then requested by the projector. The PUK code is also supplied on the same sheet included in the projector accessories box. If the wrong PUK code is entered 3 times in a row, the projector will be locked permanently. This renders the unit useless to a thief trying to watch a DVD, but it could be quite un-nerving to a legitimate end-user who accidentally activated the security feature and then entered the wrong PIN and PUK codes. Thankfully, a special service “Unlock” key is available that can be used to unlock the “secured” projector. To access this code you will need to contact Digital Projection Service Support. Be prepared to confirm your status as a DP Dealer.

This unique security feature is designed to prevent unauthorized use of the projector as well as deter theft. If the PIN code is not activated in the Utilities menu, no PIN code or PUK code will ever be needed. Of course, the projector would then be available for use by a would-be thief.


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