PLP UNVEILS PERFORMANCE-BASED PRICING

– Customers Benefit from New Pricing Model for PlotWorks® Printer Interfaces –

SCOTTSDALE, Ariz. – January 20, 2004 – PLP Digital Systems, the leading digital reprographics solutions provider, today unveiled a performance-based pricing model for PlotWorks that affects all wide-format printer interfaces, including:

• KIP 8000
• Kyocera Mita 4850w
• Océ 9800
• Xerox Wide Format 721P

The new model has reduced most printer interface prices by 13 to 46 percent.

Performance-based pricing is a customer-focused alternative to cost-plus models, where price is based on the cost of development and manufacturing plus desired profit. While cost-plus pricing is easy to calculate and administer, it tends to ignore the roles of consumers and competitors. Most products and services today are still are still priced according to what they cost to produce.

Unlike cost-plus pricing models, PLP’s approach bases the value of each printer interface on printer performance, with the addition of a depreciation schedule for legacy devices. This results in consistent and logical pricing that is easy to understand.

"This was neither a trivial nor risk-free decision," says John Cronin, CEO of PLP, "but it’s the right thing to do. Performance-based pricing is about aligning price with value, rather than a desired-profit approach. As a company we need to be focused on adding value to our customers’ operations, and our solutions should be priced accordingly."

In addition to the new approach to pricing printer interfaces, PLP has implemented several other pricing changes that reduce total cost of ownership and simplify configuration and ordering.

About PLP
For more than a decade PLP Digital Systems has helped companies produce, manage, distribute and track technical documentation. With a broad suite of software solutions and world-class customer support, PLP's mission is to improve their customers' profitability by decreasing operating costs and by creating new revenue opportunities with innovative products. Their powerful software, strong customer service model and progressive philosophy have made PLP the partner of choice for more than 1100 companies in 30 countries.

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