Topics Overview

Issue 2.2009A publication of Koelnmesse, Inc.

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A Year In Review

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Shows Have a Bigger Payoff

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Export Assistance for SmallBusinesses

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Event Spotlight ~ Anuga

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Working Smarter

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Upcoming Event Calendar

Koelnmesse, Inc.8700 W Bryn Mawr AvenueSuite 640NChicago, Illinois 60631United States of Americaphone: +1-773-326-9920fax: +1-773-714-0063http://www.koelnmessenafta.comhttp://twitter.com/koelnmesseinc

Dear Friends and Associates,Despite the challenging economic circumstances, 2009 turned outto be a good year for Koelnmesse Inc. We certainly hope the sameholds true for your business! I would like to send you my warmthanks for the support and loyalty shown to our events in Cologne,Asia and North America. As the year comes to a close it is time to re-

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ect, recharge, express our gratitude and celebrate the holidays withour families and friends. Our Chicago team thoroughly enjoys work-ing with - and for you! On behalf of all of us, I wish you a Happy Holiday Season, muchneeded relaxation and a healthy start into 2010!2009 was the busiest year ever for Koelnmesse: Highlights included the launch of Gamescom this August in Cologne which was witnessed by 245,000 attendees lookingfor the “hottest” the interactive gaming industry has to offer. The equestrian industryevent Spoga Horse moved to a biannual cycle receiving high marks from the industry andtrade. Wine & Gourmet was successfully introduced to Japan (joining the Macau event)and Coffeena to Cologne adding 2 events to the family of the Koelnmesse food & bever-age trade shows. 2009 also saw the second edition of Carbon TradeEx America in Wash-ington, DC (held in San Francisco in 2008), the leading North American conference andtrade show in the quickly evolving U.S. Carbon market organized by our North Americanof

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ce in conjunction with the Carbon Markets & Investors Association.This year also brought some welcome surprises such as expanding North American spacedemands during a world-wide recession for events such as the Dental Show IDS (+23%),the Food & Beverage Show Anuga (+ 8%) and the Juvenile Product Show Kind + Jugend(+4.5%). The largest growth was recorded at Sweets Middle East in Dubai (+52%). Thesegrowth rates prove that many companies continue to look for opportunities across bor-ders in order to balance slow domestic growth. During 2009 our North American of

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cepromoted 37 Koelnmesse events and offered North American Pavilions at 11 of them.The largest such groups were organized at IDS and Anuga. In each case over 100 U.S. com-panies joined the Pavilions offering a powerful and highly recognizable presence withineach event.For the New Year we are planning some exciting local off-site tours for our attendeesat imm cologne and the International Hardware Fair. And preparations are well underway for the North American group exhibits at all our 2010 shows, incl. our mega-eventsphotokina, Intermot and Orgatec.

Happy Holidays from the entire Chicago based teamMette PetersenPresident & Managing Director Koelnmesse Inc.

Why exhibit during a recession?

While aspects of the face-to-face marketing industry – which includes trade shows, special events, meetings, con-ventions, and travel & hospitality - have all felt the effects of budget cuts in the past year, there is plenty of justi

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-cation to continue this type of highly effective marketing.According to a recent survey of Fortune 1,000 Chief MarketingOf

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cers, meetings and events provide the highest return oninvestment of any marketing channel. According to a recentstudy by CEIR, the Center for Exhibit Industry Research, exhibi-tions and events remained at the top of MarCom spending,accounting for 20% of the budget despite reductions in overallmarketing spending.Still, as a result of the downturn, exhibition budgets for 2009are down by 17% and an equal 17% of exhibitors have report-ed that they will participate in fewer shows in 2010.

So why should companies still exhibit during an economic downturn?

To Close Deals & Sell More Product –

Why would you want to shut off a stream of revenue when every bit counts? Studieshave shown that sustained marketing during a recession yields higher sales in the short term. And market share increases accom-plished while weathering a recession are often maintained or expanded during the recovery and subsequent boom years.

To Remain “Top of Mind” for Prospects and Existing Customers –

Let them know that your company is still strong, or maybeeven take this opportunity to kick it up a notch and stake your claim to the top player position in your niche.

To Take Advantage of Less a Crowded Space –

Perhaps your company can secure more prominent booth space that may havebeen vacated by the competition. And with fewer exhibitors, there will be less noise, allowing your message get through andresonate longer with attendees and the media.

To Make High Quality Connections –

Although the industry has seen a drop in the number of total show attendees and thesizes of booth spaces have been reduced, the QUALITY of the visitor now is much better. Companies may no longer be sending25 reps to a conference or industry expo, now it’s maybe 10 or 12 – but those that are being sent are the key decision makersand top representatives of companies you are looking to connect with. While companies are watching travel and entertainmentexpenses, they still feel that it’s important for their staff to stay connected, stay current on emerging trends in their industry, andto participate in education opportunities typically offered in conjunction with trade shows and other events.Face-to-Face marketing experiences are personal, sensorial, tactile, emotional, and tangible. No alternate or surrogate for thatkind of direct contact exists.

Harvard Study Con

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rms Value of Face-to-Face Meetings

Business Execs Maintain Positive Attitude Towards In-Person Meetings (percentage who agree:)

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In-person meetings are key to the success of a long-term relationship....95%

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In-person meetings allow me to build stronger business relationships.....95%

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In-person meetings are helpful when negotiating with people from different languages andcultural backgrounds...93%

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In-person meetings are essential for “sealing the deal”....89%

* Harvard Business Review survey of 2,300 business leaders in the U.S., Europe and Asia released Aug 2009.

In case you’re not familiar with them, some excellent pro-grams exist to get your exports kick-started:

U. S. Department of Commerce

The U. S. Department of Commerce offers ex-tensive assistance through their 18 U.S. ExportAssistance Centers located throughout the U.S. Their ExportPrograms Guide is the most comprehensive source for morethan 100 federal export assistance programs, including:• Export counseling programs• Information on trade promotion events• Export

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nancing programs• Sources of industry- and country-speci

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c information andassistance• Information on export controls and licensesCheck out these websites for details:

http://export.gov/exportprogramsguide/ http://www.buyusa.gov/home/

U. S. Small BusinessAdministration

The mission of SBA’s Of

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ce of International Trade is toenhance the ability of small businesses to compete in theglobal marketplace; facilitate access to capital to supportinternational trade; ensure that the interests of small busi-ness are considered and re

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ected in trade negotiations; andsupport and contribute to the U.S. Government’s interna-tional agenda.Their website www.sba.gov/international outlines the

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nanceprograms and resources available.

Export-Import Bank of the United States

The Export-Import Bank of the United States isthe of

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cial export credit agency of the UnitedStates. Ex-Im Bank’s mission is to assist in

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nanc-ing the export of U.S. goods and services tointernational markets. Ex-Im Bank enables U.S.companies — large and small — to turn export opportunitiesinto real sales that help to maintain and create U.S. jobs andcontribute to a stronger national economy.Ex-Im Bank does not compete with private sector lenders, butprovides export

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nancing products that

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ll gaps in trade

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nanc-ing. They assume credit and country risks that the private sector is unable or unwilling to accept; and help to level the playing

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eld for U.S. exporters by matching the

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nancing that other governments provide to their exporters. Ex-Im Bank providesworking capital guarantees (pre-export

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nancing); export creditinsurance; and loan guarantees and direct loans (buyer