CAP Ventures Announces 2001-2002 U.S. Digital Printing & Production Copying Placement Numbers

(Norwell, MA) April 29, 2003...Total placements for the on demand, data processing, and production copying markets, which CAP Ventures calls the production copying and digital printing industry, grew 3% from 98,499 units in 2001 to 101,626 units in 2002. CAP Ventures analysts attribute this somewhat lower performance to a down economy and a continued slump in the graphic arts printing market, which has had a negative impact on equipment and technology purchases.

The production copying and digital printing market got a well-timed boost from the success of the 80+-ppm cut-sheet monochrome devices across all categories. Much of this success was in lower-priced, lower-volume light production devices, which provide a broad spectrum of print providers with a cost-effective digital printing solution. CAP Ventures expects to see a similar trend in 2003 in the production color market as more "universal" copier/printers enter the market. These devices offer cost-competitive monochrome and color output on the same device. The production color market will also benefit from reductions in cost to print on high-speed printers. This will contribute to the transition of black & white pages to color devices.

Print-on-demand placements grew 4% from 61,299 in 2001 to 63,883 in 2002. Black & white placements drove this segment growth with a 28% increase. While total color placements dropped by 6%, largely because of a significant decrease in the number of convenience color copiers, production color devices that print at speeds of 24 ppm or faster increased by more than 4%. This segment is expected to grow even more in 2003.

Data processing placements increased 13% from 3,292 in 2001 to 3,719 in 2002, due to a significant increase in 80+-ppm cut-sheet placements as discussed above.

Production copying remained flat as digital devices replace analog devices in this segment, with some of those devices transitioning into the print on demand and data processing segments.

CAP Ventures' document entitled 2001-2002 U.S. Production Copying & Printing Placement Summary and Trends provides a placement summary for 2001 and 2002 for the on demand, data processing, and production copying markets. The document also includes an overview of the major market trends that impact placements.

CAP Ventures' complete market forecast through 2007 will be available later this quarter and will include placements, installed base, impressions per machine per month, annual impressions, revenue (equipment, supplies, and service), average retail value per image, and retail value of print.

To learn more about this report or to make a purchase, please contact Stewart MacDonald at 781-871-9000 ext. 175 or via e-mail at stewart_macdonald@capv.com.

CAP Ventures is a strategic consulting firm for providers and users of business communication technologies and services. We deliver key research, analysis, forecasting, benchmarking, and strategy recommendations to make a competitive difference in our clients' businesses. Additional information about CAP Ventures is available on the Web at www.capv.com.