June 17, 2005


HAMPSHIRE, UK - Snell & Wilcox (www.snellwilcox.com) announced a series of changes to its European marketing strategy, including a decision not to exhibit at IBC 2005 in Amsterdam this September. The changes, which result in no budget cuts and maintain the company's current level of marketing expenditure, follow a comprehensive internal review of how the company traditionally spends its marketing budget.

In a letter posted to customers on June 14th, Snell VP of marketing and product management Joe Zaller stated: "Following a comprehensive internal review of how we spend our marketing budget and the return we achieve from this investment, we have decided to shake up our approach and change the way we invest in marketing. Like many vendors, a major percentage of our marketing budget has traditionally been allocated to trade shows. Although they are undoubtedly extremely valuable, large trade shows are also very time-consuming, and can be an inefficient use of our resources when compared to other ways of communicating with our customers. Therefore, Snell & Wilcox has decided not to exhibit at IBC 2005 in Amsterdam this September."

The letter continued, stating: "This decision should not be interpreted as a wholesale rejection of major trade shows. We are still committed to the annual NAB trade show in Las Vegas, and it is not our intention to abandon IBC permanently. Our plan is to evaluate IBC participation on an annual basis, with the possibility that we may opt to attend IBC every second year going forward." Snell & Wilcox says it is continuing to spend the marketing dollars it normally spends, including the $1 million it will save by not exhibiting at IBC. This spending will include participation at dozens of smaller trade shows as well as product and technology road show events.

Throughout 2005, Snell & Wilcox will exhibit at approximately 15 smaller, regional broadcast shows in the United Kingdom, France, Italy, Spain, India, Japan, Russia, China, Singapore, Dubai, Australia, and South Africa. The change of emphasis will allow the company to spend more time on focused personal contact with customers rather than on rushed impersonal presentations in a crowded exhibition environment.

The company also plans a major redesign of its Web site with the goal of providing an easy way for customers to learn about their products and technologies.