Consumer Behavior Report V1.

4/06

Q1 2006: Mobile Lifestyle Trends

Overview

What is the Consumer Behavior Report?

ƒ The Consumer Behavior Report is used for merchants, media, and industry analysts to
understand shopping trends, pricing, and market share. Each month, a different topic will be the
focus of the Report.

What is the Mobile Lifestyle Trends data?

ƒ Mobile Lifestyle Trends is the focus of PriceGrabber.com’s Consumer Behavior Report for April.
The data was compiled from a survey conducted in March 2006. In addition to the survey, data
from Market Reporter, a statistical database that tracks actual consumer shopping behavior on
PriceGrabber.com was also included. PriceGrabber.com is a major shopping comparison engine
with more than 21 million monthly unique users and up-to-date daily pricing of products supplied
by more than 11,000 merchants.

What is new in this report?

ƒ First quarter 2006 shows a drop in cell phone prices and increase in consumer interest for top-of-
the-line cell phones, a significant growth in market share for Apple MP3 players, and an increase
in popularity among high-end premium digital cameras.

For additional information on the Consumer Behavior Quarterly Report data or other topics of interest, please
contact Michelle Kane at mkane@pricegrabber.com.
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Mobile Lifestyles: Cell Phone Trends

ƒ In a recent survey, most respondents indicate the primary reasons they shop for a new cell phone are
practical instead of driven by style or fashion; 41% said they only get a new phone when they are getting
a new cell plan, 29% do so to replace a broken or lost phone, and 22% said they replace their phone for
improved features. Only 8% admit to shopping for a new phone for style purposes.

Pricing for Cell Phones

$500.00

$400.00

$300.00

$200.00

$100.00

$0.00
Jan-05

Feb-05

Mar-05

May-05

Jun-05

Jul-05

Oct-05

Nov-05

Dec-05

Jan-06

Feb-06

Mar-06
Sep-05
Apr-05

Aug-05

Source: Market Reporter PriceGrabber.com 2006

* Pricing based on an average monthly price of all cell phones

ƒ The average price for cell phones consumers shopped for in Q1 2006 was $311, a 29% y-o-y decrease
from Q1 2005 which had an average price of $439. While average prices have decreased significantly,
American consumers are still willing to spend a lot. More than half of the top 15 most popular cell phones
have a price point over $250. (These prices are for phones without new activation).

Avg
Rank Cell Phones Price Launched
1 Motorola Razr V3 - Black $195 Apr-05
2 Motorola SLVR L7 $215 Jan-06
3 Motorola V3i $289 Jan-06
4 Sony Ericsson K750i Walkman Cell Phone $309 Jun-05
5 Motorola Razr V3 - Blue $207 Dec-05
6 Motorola V3X $400 Feb-06
7 Sony Ericsson W900i $605 Dec-05
8 Sony Ericsson W800 Walkman Cell Phone $368 Aug-05
9 Motorola Razr V3 - Pink $209 Dec-05
10 Samsung SGH-D600 $336 Oct-05
11 Handspring Treo 650 PDA Phone $535 Feb-05
12 Motorola Razr V3 - Silver $221 Sep-04
13 Nokia 6260 C $283 Aug-04
14 Motorola ROKR E1 w/ iTunes $170 Sep-05
15 Motorola L6 $149 Dec-05
Source: Market Reporter PriceGrabber.com 2006
* Top 15 cell phone rankings based on clickthrus to merchant, 03/28/06 through 04/11/06
** Launch date based on first appearance on PriceGrabber.com

ƒ With cell phones priced as high as $605 for the Sony Ericsson W900i Cell Phone ranked #7 on the top 15
list, consumer interest for high-end cell phones is showing robust growth. Even though survey
respondents claim to be practical, the top 15 most popular list is indicative of the increasing interest to
shop and research online for high-priced, top-of-the-line cell phones, instead of cell phones with the
lowest price.

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Mobile Lifestyles: MP3 Player Trends

ƒ It’s not just a fashion statement, 75% of respondents say they did or would buy an Apple iPod because
they believe it is the best technical MP3 player, and only 25% say it was because it was the “in” brand.

ƒ Apple continues to be the dominant leader for MP3 players holding 61% share of the market based on
referred dollars and 49% of the market based on clickthrus to merchants, a 29% increase in market share
y-o-y.

Apple iPods vs. non-Apple MP3 players: Market Share and Average Prices

Referred
Year Manufacturer Dollars Clickthrus Avg Price
2006 Apple 61% 49% $244
2006 non-Apple 39% 51% $188
2005 Apple 47% 38% $281
2005 non-Apple 53% 62% $215
Source: Market Reporter PriceGrabber.com 2006
* Share based on referred dollars and clickthrus to merchant as of Q1 2006 and Q1 2005
** Non-Apple MP3 player manufacturers consists of over 12 major manufacturers

Avg
Rank MP3 Players Price Launched
1 Apple iPod nano 4GB - White $234 Sep-05
2 Apple iPod nano 2GB - Black $185 Sep-05
3 Apple iPod nano 1GB - Black $142 Feb-06
4 Apple iPod nano 4GB - Black $234 Sep-05
5 Apple iPod shuffle 512MB $66 Jan-05
6 Apple iPod nano 2GB - White $181 Sep-05
7 SanDisk Sansa m240 1GB $78 Oct-05
8 SanDisk Sansa m230 512MB $52 Oct-05
9 Apple iPod nano 1GB - White $141 Feb-06
10 SanDisk Sansa m250 2GB $121 Dec-05
11 SanDisk Sansa e140 1GB $79 Mar-05
12 Apple iPod shuffle 1GB $94 Jan-05
13 Apple iPod Photo 60GB $344 Feb-05
14 SanDisk Sansa 512MB $50 Mar-05
15 SanDisk Sansa c150 2GB - Black $132 Mar-06

Source: Market Reporter PriceGrabber.com 2006

* Top 15 MP3 player rankings based on clickthrus to merchant, 03/28/06 through 04/11/06
** Launch date based on first appearance on PriceGrabber.com

ƒ 43% of those surveyed say they won’t buy a new iPod until their current model is maxed out or no longer
working; another 35% won’t buy a new version within the first 6 months and only 7% say they likely would
buy one within the first month of release.

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Mobile Lifestyles: Digital Camera Trends

ƒ The digital camera market is a maturing market with 13% y-o-y growth based on clickthrus to merchants
in Q1 2006.

Top Ranking Digital Cameras

Avg
Rank Digital Cameras Price Launched
Canon EOS 350D Digital Rebel XT Digital SLR Kit w/ 18-55mm
1 Lens $724 Mar-05
2 Canon PowerShot S2 IS $329 May-05
3 Nikon D50 SLR w/ 18-55mm F/3.5-4.5G Lens $603 Apr-05
4 Canon PowerShot SD450 $248 Aug-05
5 Canon PowerShot A620 Silver $272 Aug-05
6 Sony Cyber-shot DSC-H1 $324 Mar-05
7 Nikon D200 SLR - Body Only $1,712 Nov-05
8 Canon PowerShot A610 $206 Aug-05
9 Panasonic Lumix DMC-FZ7K $343 Feb-06
10 Canon PowerShot ELPH SD550 $327 Aug-05
11 Canon EOS 5D Digital SLR - Body Only $2,916 Aug-05
12 Canon PowerShot SD600 $286 Mar-06
13 Sony DSC-W50 Silver $233 Mar-06
14 Canon EOS 30D SLR - Body Only $1,326 Mar-06
15 Panasonic Lumix DMC-FZ30K $503 Aug-05
Source: Market Reporter PriceGrabber.com 2006
* Top 15 digital camera rankings based on clickthrus to merchant, 03/28/06 through 04/11/06
** Launch date based on first appearance on PriceGrabber.com

ƒ In general, the popular camera models, and manufacturers highlight PriceGrabber.com’s customers
continued pursuit of new models with higher-end technology and features, not one focused on buying
low-end, low-priced models.

ƒ Prices on the top 15 digital camera models reveal, not surprisingly, a correlation between their average
price and total number of megapixels. Camera manufacturers have been keeping prices steady and
continue to release new models on an aggressive timeline with increased megapixel resolution. The
average price breakdown of the top 15 digital cameras by megapixels is as follows:

8 MP+ = $1,436
6MP - 7 MP = $344
5MP = $277

ƒ Five of the top 15 digital cameras are digital SLRs (single-lens reflex cameras) representing online
consumers’ increasing interest in purchasing professional high-end cameras with an average price point
of $1,450.

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Disclaimer

The information, data trends, and analysis in this report were prepared by PriceGrabber.com. Data
provided by Market Reporter, a division of PriceGrabber.com that serves as an “up-to-the minute
barometer” tracking online consumer behavior on a real-time basis reflecting Q1 2006 and previous
quarters.

Secondary data included in report is sourced by results from the Mobile Lifestyles Survey. The survey ran
from March 10, 2006 to March 13, 2006 with 1,578 respondents. The confidence interval for all results is
95% with a margin error of approximately +/-3 percentage points for the entire sample.

This report may not be reproduced, distributed or published by any person for any purpose without
PriceGrabber.com’s prior written consent. Please cite source when quoting.

Supporting data and information available upon request.