Why Kingston Memory

Presented by: November 2, 2010 – Lance Pandrock

• About us

• Kingston Memory – Business Drivers

• How do I do business with Kingston

• Questions

• Founded in 1987 • Privately Held & Minority-Owned Company • Financially Secure • 2009 Revenue of $4.1 Billion • Over 4,500 Employees Worldwide • Revenue Per Employee ~ $1M • Worldwide Manufacturing & Testing • Focused Business: – Memory Modules (Kingston Technology or KTC) – Flash Products (Kingston Digital Inc. or KDI) – Now SSD’s! • Products distributed in 110 Countries and available in over 30,000 locations worldwide: – Widely accepted brand

• Virtualization • Multi-core Processors • Growth of Datacenters • Economy/PC Refresh • Memory Pricing

© 2009 Kingston Technology Europe Limited and Kingston Digital Europe Limited. All rights reserved. All trademarks are the property of their respective owners. December 13, 2010 Virtualization Virtualization Reduces IT Costs – Fewer physical servers – Lower power consumption = less heat – Less cooling required – Lower IT resources to manage – Reduce physical IT infrastructure – Memory Sales Opportunity!!!

• VMware is the virtualization technology market leader today. • Microsoft’s Windows has Hyper-V virtualization. • Virtualization is driving demand for multi-core servers.

• So….Virtualization is driving demand for memory, including Low Power memory.

Why is Kingston interested in the Virtualization market? (A) Because each server that is virtualized needs to have enough memory installed in order to properly support its Virtual Machines and their applications. Does Kingston have a product that does something specific for virtualization? (A) No, our memory is just that —memory to be installed in the physical server. Why does a server need more memory for virtualization? (A) There are two key reasons to have more memory available — to run the virtualization software and to support all Virtual Machines with their applications without performance impact.

DDR3 becoming dominant memory technology… – DDR2 to DDR3 price-crossover started in 1Q 2010 – DDR2 is becoming a “Legacy” memory technology – Multi-core Intel Nehalem-EP, Westmere-EP on 2-way servers using DDR3 modules only – Nehalem-EX on 4-way servers to shift to DDR3 modules only

Oct. 1st..Price Reductions

• DDR1 : Modest drops of 5-8% • DDR2: Drops ~5-8% on NB/DT, 16GB Server kit drops of 25-35% • DDR3: Significant drops of ~15-25% on NB/DT, 8GB server drops of ~20-25%, 16GB server drop ~30-40%

This is the time to be more competitive!!! Bring opportunities to us!!!

• Adding Kingston memory doesn’t void system warranty!!!!

• Patented burn-in testing

• Worlds largest provider of server memory to business’ worldwide!

1975 Magnuson-Moss Warranty Act

Kingston Quality Standard: Zero bad cells 1 bad cell = defective module

100% dynamic module burn-in testing exceed OEM specifications!! Since 2004, Kingston has set a new industry reliability and quality standard

Testing simulates 3 months of heavy server use Up to 24 hours in Kingston-designed test chambers Tested at 212o Fahrenheit and higher voltage

Every cell of every DRAM is continuously exercised Nearly eliminates Early Life Failures in customer servers*

*Kingston 6-month trial testing in 2004 showed that 90% of Early Life DRAM failures are now being screened at the factory – before shipment to customers.

• Worlds largest provider of memory with 20+ years of experience. We own over 40 % of the Third-Party memory market!

• In August 2009, INC.com's "Top 100 Companies" ranks Kingston #5 in Kingston OEM Private Companies by Revenue Branded Branded 54% 46% • Kingston revenues of $4.1B for 2009

• Kingston’s memory can cost on average 40% under the equivalent OEM upgrades with the same attention to quality, service and support. Customers .. they save and you add more margin!

• MEMORY…Its all we do!...and we do it well!!

© 2009 Kingston Technology Europe Limited and Kingston Digital Europe Limited. All rights reserved. All trademarks are the property of their respective owners. December 13, 2010 Kingston Branded vs. Kingston ValueRam Kingston Branded • System Specific: Memory that’s going into systems made by Acer, IBM, HP, Lenovo, Dell, etc.)…KTD,KTH, KTM…etc. • Guaranteed Compatibility: Kingston customizes its memory and guarantees 100-percent compatibility. Kingston ValueRAM • ‘White Box’ System Builders (servers, notebooks and/or desktops) • Resellers requiring “non-branded” memory. (Memory that’s not going into systems made by Acer, Apple, HP, Lenovo, etc.) • If your customer asks for a mfg. part # that starts with “KVR”…that’s Kingston ValueRAM.

• Doesn’t void system warranty!!!! • Superior Quality: Kingston qualifies all components and tests all modules in all stages of production. • Guaranteed Compatibility: Kingston customizes its memory and guarantees 100-percent compatibility. • Convenience: Kingston provides a complete range of memory solutions at competitive prices for thousands of systems. • Stability: Established in 1987, Kingston has grown to be the largest independent memory module manufacturer in the industry. • Reliability: Kingston is the #1 independent memory module manufacturer in the world. We will continue to dedicate all our efforts and resources to be the leader in the memory market. • Warranty: Kingston offers a lifetime warranty on all memory modules and Flash cards.

If you’re in a competitive situation or you’d like to increase your margin on an opportunity, PLEASE CONTACT your Tech Data sales rep!

Your rep will provide us with the following info: Company name, city & state Part # (Kingston # if you have it or system make/model Quantity Comp/target pricing

No Guessing…Go to Kingston.com and use the configuration

Thank you!

[email protected]

727.692.7735