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Introduction Intellectual Property Environmentally Friendly Corporate Management

NinestarStory of Ninestar Production R&D Technology Corporate Social ResponsibilityProduct Range Certificates Warranty References

CONTENTS

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The financial crisis that struck us in 2008 has left deep

marks in both our economy and society. The distrust

that exists among financial institutions has resulted

in a shortage of financial means. As a consequence

of this low economic activity there are little or no

investments and is it harder than ever to extend credit.

At the beginning of 2010 we have noticed the first

signs of recovery and probably within 2 or 3 years the

situation will be as before. One seems to have gotten

away unscathed and have even experienced a growth:

Compatible Supplies.

By the end of 2009 the American research bureau IDC published a report in which it discussed the market of printer consumables. IDC noticed that for the first half of 2009 the OEM manufacturers lost a considerable market share to alternative suppliers. While in laser cartridges the OEM still possesses 63% of the market, in ink they merely have around 50% of the market share left. For an outsider a market share of over 50% in both segments seems acceptable but things are seldom what they seem. Two years earlier their shares were still at approximately 70%.

What has happened? In nearly all industries alternative suppliers of components or consumables are omnipresent. Think about the automotive or aviation industry where non original spare parts are very common. An example even closer to home is the wide offer of alternative pads for coffee machines. Unfortunately we still find some exceptions to the rule one of them being the printer industry. The main reason for this is the so-called ‘razor and blades’ model which manufacturers apply.

It was a certain Mr Gillette who introduced this model. By the end of the nineteenth century he was looking for a way to boost the sales of his razors when he came up with the brilliant idea to give away the razor itself for free and to sell the blades, it worked! By 1910 the company Gillette was market leader and Mr Gillette had become a multimillionaire. It goes without saying this model has been copied several times, Adobe with its PDF format and Sun with its Java platform. Both have given away their basic software for free but made millions of dollars on other applications or licences to use their technology. Even in the music business we can find an example. In July 2007, Prince distributed 2.8 million copies of his latest album together with the British newspaper ‘The Mail on Sunday’. The newspaper paid 36 cents per CD for the licence which resulted in a profit of 1 million dollars for Prince. Because of this action he was able to perform 21 sold-out concerts in London, for which he caught another 23 million dollars.

The first obstacle which alternative manufacturers of compatible cartridges have to clear away are the large number of patents that the original manufacturers have taken out on their products and technology. By doing that they make it impossible for their competitors to offer an alternative without their permission. If you decide to introduce a product without such a permit, you risk a large fine.

INTRODUCTION

components and careful reassembly of the cartridge creating actually a new product. One of the latest phenomena is the rise of alternative manufacturers which by-pass the registered patents of the original manufacturers and as a consequence do not infringe their intellectual properties. Such efforts can only be realized by R&D departments which demand considerable financial resources, something only big industrial manufacturers such as Ninestar can afford.

Finally this rise of the non original printer consumables could have been predicted. The situation created by the OEM manufacturers was hard to maintain in the long run just as all monopolies are. The financial crisis has just sped up this process substantially and has, probably, changed the market in an irreversible way.

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The second obstacle is the wide range of products. By introducing again and again new consumables for new series of printers, the manufacturers make things difficult for alternative suppliers.

The third obstacle to clear is the chip technology within the cartridge. These chips which are hard to counterfeit communicate with the printer in order to inform the user on how much ink is left. Finally, with sly marketing the end user is advised to take no risk and use only the best quality (read: OEM).

The last few years however, we have experienced a shift. Particularly the introduction of printers below 50 euros has made consumers think. Consumables are often more expensive than the printers themselves. This has also drawn the attention of different consumer organizations and as a result more and more consumers have been looking for ways to reduce their printing costs.

At the beginning it was limited to some amateurishly ways of refilling ink but because of the increasing demand, alternative suppliers did rapidly invest in solutions to improve on this. From a simple ‘drill ‘n fill’ it has evolved towards a complete disassembly and cleaning of a cartridge including replacing worn-out

Printer manufacturers lose an average of between 100 to 300 dollars per sale, however they recoup these losses within a year by sales

of ink and toner. When you take into account the average life of a printer is between three and five

years, it is clear that the sales of consumables is big business to the HP’s, Canon’s, Epson’s and

Brother’s of this world. It is no wonder that each OEM puts in great efforts to preserve this

situation.

“The evolution from a craft towards a professional and industrial activity

has resulted in a considerable improvement of the quality of

alternative supplies and also explains the increasing popularity.”

1Static Control Components (SCC) is the world’s largest producer and distributor of components used in the production of laser toners.2The Digital Millennium Copyright Act (DMCA) is a United States copyright law, based upon two treaties in 1996 of the World Intellectual Property Organization (WIPO), an organization that protects intellectual monopolies. This copyright law protects contents available on the internet and criminalizes infringement.6

During the last 25 years the printer market has been

evolving towards a billion-dollar business. Each year

enormous amounts are invested in research and

development of new techniques and processes to

keep one step ahead of the competition. The financial

means to fund all this are mainly obtained through the

high profits manufacturers make on ink and toner. To

maintain this income flux all of them have taken out

patents on their products and solutions.

Governments can assign patents to individuals or companies for their products and processes. In theory a patent is meant to protect the efforts of the inventor or designer, in practice however, printer manufacturers have used these patents to make competition impossible. For a while these manufacturers have been experiencing more and more pressure. Not only have consumer organizations and governments looked with a critical eye towards this situation, alternative suppliers have invested more and more financial means to by-pass these patents in a legal and ethical way.

The many accusations against alternative suppliers by OEM manufacturers show the OEM has not thrown in the towel yet. Most of the time the OEM is shown to be right but lately there have been some cases where it is the alternative supplier who shouts victory. An example of this is the verdict an American court gave in a case between Lexmark and Static Control Components1. Lexmark referred to a law that was initially meant to protect digital contents, the Digital Millennium Copyright Act (DMCA)2. Lexmark stated that a toner cartridge remained at all times property of the manufacturer. As a consequence any sales of empty, refilled or remanufactured cartridges without permission infringes the patents and copyrights of Lexmark. All anxiously looked forward to the judgment as in case of Lexmark being in the right, non original suppliers would have been sentenced to death. Not entirely unexpected, Lexmark

was not proven right. Given that patents are limited in time, some patents are not lengthened because they have become common property. Because of this printer manufacturers have been looking for ways to protect their products. An example of such initiatives is the introduction of chipped cartridges. These chips indicate the level of ink or toner still available and when these cartridges have to be replaced. Before it was impossible to refill these cartridges because the chips kept indicating the cartridge was empty even after a refill. This problem has been countered relatively quick and moreover in a completely legal way by the so-called chip resetters. These devices reset the original settings of the chip so the cartridge can be used again. Recently printer manufacturers have started to encrypt their chips which has made it once again more difficult or even impossible to reset the chips.

A number of manufacturers of non original consumables like Ninestar have for that reason decided to develop their own series of compatible chipsets. Here again development was impossible without the professionalization and industrialization the aftermarket industry has gone through. The extended structures that carry out research and develop alternative processes and products and conduct research on patent infringement, ask next to this professionalization also a substantial financial effort.

“At the end of 2008 Ninestar has signed a license agreement with Toshiba. As a result Ninestar has obtained access to many basic

patents.”

INTELLECTUAL PROPERTY

7

One of the latest developments is the license agreements that alternative manufacturers have closed with leading companies in R&D of printing technology. Ninestar closed such a deal with Toshiba at the end of 2008. By this license agreement Ninestar has obtained access to many basic patents regarding laser printer and consumables technology. A direct consequence of this is that Ninestar can introduce without any legal concern products onto the market that make use of that technology. This is an important deal that without any doubt will be repeated in the future by other parties.

One of the most sensitive points in the entire printer consumables industry remains ‘Intellectual Property’. Printer manufacturers have the right to protect their efforts and their investments. In most cases the OEM does not protect its investments and efforts, but rather screen them off. This is opposed to the vision of most governments which have stated that in the interest of the consumer there has to be competition. That has resulted in a number of alternative manufacturers to having take the initiative to develop high quality alternatives in an entirely legal way.

Original manufacturers of printing supplies protect their market shares by massively

taking out patents on products and processes. By incorporating chips into their cartridges

they try to make competition more difficult. Large players in alternative supplies like

Ninestar now by-pass or buy access to such patents to produce chipsets of their own.

As a result they can offer a good alternative product that is wholly legal.

1A documentary about global warming by former U.S. vice president Al Gore. This documentary has contributed to the environmental consciousness. It has inspired many known politicians as Tony Blair to put global warming on the political agenda. 2The Carbon Footprint of Remanufactured Versus New Mono-toner Printer Cartridges, Centre for Remanufacturing & Reuse, sl., sd.3InfoTrends is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industry.8

Putting Paper in the Trash Can is Not RecyclingAfter Al Gore jolted us awake with the documentary ‘An Inconvenient Truth’1, environmentally friendly corporate management has become a hot topic. Each company that respects itself tries to contribute to maintain our beautiful planet as green and healthy as it is. Also the printer business tries to do its share of the work and looks for environmentally friendly solutions. Because manufacturers of cartridges use a lot of plastic components for both printers and consumables which are not biodegradable, the manufacture of printers is inherently harmful to the environment. These manufacturers do make an effort to collect used cartridges which they afterwards try to recycle by reusing them partially in new products. In that way they reduce the carbon footprint substantially. The following graph comes out of a British survey2 and shows clearly the difference in carbon footprint between a new and a remanufactured cartridge.

There used to be two waste-disposal options, bury or burn the empty cartridges. The first option, to bury used cartridges was a very environmentally unfriendly solution. Because the material a cartridge is made of is not biodegradable, it causes great pollution; it contaminates both soil and soil water. Burning was the

other option. Today however, strict rules exist about what can be burned and what cannot. Moreover, as all countries are now trying to reduce their carbon dioxide emission this option is altogether wrong. Under certain conditions however, when e.g. the energy released by the burning process can be used for heating or to generate electricity, this option can even become an environmentally friendly alternative.

Reuse of Old CartridgesReusing or recycling means that you use material again after being designated as waste. There does exist a difference between both expressions. Reusing means that an object is used again for either the same or another purpose, while as recycling means that a residue is converted into another product.

Nowadays recycling and reusing old cartridges has become very popular. A few years ago InfoTrends3 published a study, 2007 Supplies Recycling US and Europe, in which they studied in depth the recycling of old cartridges by both OEM and aftermarket manufacturers.

Today almost each OEM has a return program of its own to collect used cartridges. They leave nothing to chance to emphasize their contribution to a cleaner and better world. What happens with the cartridges once they are collected? The study has shown that a lot of cartridges collected end up nonetheless in the dustbin, either because they are damaged or cannot be used anymore as they contain non popular products. Furthermore it seems that the reuse of cartridges and components is a very time-consuming process and the necessary infrastructure is not always available.

What does carbon footprint mean?A carbon footprint is the total of greenhouse gas

emissions released into the atmosphere.

Graph 1: Carbon footprint of materials used in printer cartridges.

ENVIRONMENTALLY FRIENDLY CORPORATE MANAGEMENTENVIRONMENTALLY FRIENDLY CORPORATE MANAGEMENT

4The International Organization for Standardization (ISO) is an international organization which sets industrial and commercial standards regarding quality, environmental impact, etc.5ISO 9001 is a standard for quality management system. The ISO 9001 includes: A set of procedures that cover all key processes in the business, monitoring processes to ensure they are effective, keeping adequate records, checking output for defects, with appropriate and corrective action where necessary; regularly reviewing individual processes and the quality system itself for effectiveness and facilitating continual improvement. 9

points interest at five issues: • Environmental policy• Planning• Implementation and realization• Monitoring and rectifying measures• Judgment by the management

ISO 14001 is based on an environmental management in the shape of a spiral. This means that the five issues mentioned above should be taken into account continuously in order to make progress possible. Other ISO standards4 such as ISO 90015 quality management are similar in structure and can therefore be implemented side by side. By doing this you can prevent e.g. that a measure taken to reduce the impact of a product on the environment has a negative effect on the quality of that same product. With these standards organizations cannot only manage all aspects of the production process and try to reduce its impact on the environment, but they are also given the opportunity to stand out and moreover to improve their relationship with external parties such as neighbours and government.

As opposed to what is often stated opting for remanufactured is less polluting because of the reduction in waste it implies. The correct remanufacture of toner cartridges decreases the impact on the so-called carbon footprint because the polystyrene parts of toner cartridges can easily be reused. It is exactly these (plastic) components that are very wasteful of energy during the manufacturing process. A reused toner halves the emission of carbon dioxide compared to a new one as only a few necessary parts are replaced and toner is added.

The reuse of old cartridges largely depends on the availability of reused cartridges. Despite a large amount of cartridges available its collection and processing are slow. As a result manufacturers of compatibles are sometimes obliged to manufacture 100% new products because of such lack of used cartridges. An increasing professionalism in the industry makes the manufacturers as well use all efforts and resources available to reduce their impact on the environment.

ISO 14001The ISO 14001 standards act as a sort of guideline to help manufacturers minimize the negative effect their operations have on the environment. The major objective of these international standards is to promote a more effective and efficient environmental management and

The industry of compatible cartridges has been evolving from a craft towards a professional

and industrial activity including the necessary changes regarding technical competences, scientific support and especially financial means. This evolution has also brought

manufacturers of non original supplies to show commitment to reduce the impact of their

activity on our surroundings.

The aftermarket suppliers convert used and empty cartridges into remanufactured or

reusable products. They collect used supplies with or without the help of intermediaries

and process them. It is a remarkable fact that aftermarket manufacturers collect up to 70%

more in toner and 700% in inkjet than OEMs do.

ENVIRONMENTALLY FRIENDLY CORPORATE MANAGEMENTENVIRONMENTALLY FRIENDLY CORPORATE MANAGEMENT

ABOUT NINESTAR12141618 20 22 23 24

Story of Ninestar Production R&D Technology Corporate Social Responsibility Product RangeCertificates Warranty

CONTENTS

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The Largest Manufacturer of Non Original Supplies Ninestar is worldwide the largest manufacturer of non

original ink and toner cartridges. Founded in 2001

Ninestar has in only four year’s time broken the boundary

of a 100 million-dollar turnover. Two years later its

turnover had more than doubled. In 2009 they achieved

a turnover of approximately 300 million dollars.

Not only in terms of turnover Ninestar plays a significant

part. Also their production site is quite impressive. A

surface of 110,000 square meters (the equivalent of 22

football pitches) and 3,500 employees, of which over

10% are employed in R&D. The production capacity

of Ninestar is about 8,000,000 new ink cartridges and

500,000 remanufactured ink cartridges a month. In laser

they can produce up to 1,000,000 toner cartridges a

month.

In a market where patents and intellectual property

play a crucial part Ninestar has called the tune. Ninestar

has taken out more than 100 different patents on inkjet

and laser technology. The ‘Eco Print System’ (EPS) is an

example of this. It is a smart cartridge system that allows

quick and easy recycling. Other examples are its proper

inks GloriaTM (dye-based), EverBriteTM (pigment-based)

and the compatible chipsets Ninestar develops and

produces itself.

To always keep one step ahead of the competition

Ninestar has set up a structure where about 30 of its

own IP experts work together closely with some of

the leading specialists in the field of patent rights and

patent maintenance. In 2008 Ninestar signed a license

agreement with Toshiba. With this license agreement

Ninestar has obtained access to many basic patents

regarding laser printer and consumables technology.

Financial StabilityWith an eye on its ambitious growth rate Ninestar has

been looking for a solid financial partner. In April 2008

they found such a partner in Legend Capital1, one of the

leading investment companies in China. Legend Capital

with over 700 million dollars in resources is one of the

most important investors in the Chinese high

tech market. Legend also participates in the hardware

company called Lenovo.

NINESTAR IN FIGURES • Over 3,000 skilled workers in production• Production site of 110,000 square meters• 8,000,000 new ink cartridges a month• 500,000 remanufactured cartridges a month• 1,000,000 laser cartridges a month • Turnover of 300,000,000 USD • Ninestar products are sold in over 70 countries worldwide and have millions of satisfied customers• 100 patents of its own and access to many laser patents• Approx. 30 IP experts • 1,500,000 EUR on patent registration and maintenance

1Legend Capital is part of Legend Group Holdings. Any further information on this investment company you can find at: www.legendholdings.com.cn and www.legendcapital.com.cn.

Graph 2: Sales revenue in USD x million

STORY OF NINESTAR

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• Remanufactured suppliesEmpty cartridges are bought only from Ninestar certified suppliers who are regularly assessed. Only ‘virgin’ empties are bought, i.e. cartridges which have not been reused yet. Only in lack of empties do they switch to the best quality ‘non-virgin’ empties. The cartridges collected are individually checked along the strict procedures of quality control. Materials which do not meet the high standards are not used for production.

The quality and safety of the product are established in Material Safety Data Sheets1.

In the manufacturing process of reusable toner cartridges the market applies two quality standards, normal and premium quality. The quality requirements of the premium quality are naturally stricter and as a result they are more expensive as well. Where the normal quality uses ‘non-virgin’ empties, the premium quality only uses ‘virgin’ cartridges.

Ninestar produces only premium quality and guarantees a high and constant print quality. All premium toner cartridges are made out of 100% ‘virgin’ empties. Ninestar applies a strict quality control for the production of its reused toner cartridges. They test the empties, used components and composition before passing on to production.

All-in-one ManufacturerNinestar is one of the few manufacturers which keeps every step of the production process in house starting from the design and including development and production. The inks and chips are built in-house, just as all toner and ink cartridges. As a result of this in house production Ninestar can react quickly on possible market changes and the constantly changing needs of its customers. They are capable of introducing new high quality products onto the market quickly with a very competitive price.

Ninestar approaches the remanufacture of compatible supplies from a professional angle, whereas other parties still work according to the traditional and old-fashioned production process. This approach allows Ninestar to place its product next to an OEM product when it comes to quality. Innovation is in the genes of the Ninestar employees. Ninestar focuses on product innovation through its own technology without disregarding the property rights of the OEM manufacturer. Moreover, they also invest in the protection of its own intellectual property, a crucial fact for the long term development of the company.

Production ProcessThe production process of Ninestar supplies consists of 6 steps that are systematically applied in order to maintain the high quality of its reusable cartridges:

1) Purchase of Raw Materials and Empties

• Newly built suppliesIn the production process of its newly built cartridges Ninestar uses 100% new materials and respects at any time during the production process all patents of the OEM. All components used are tested according to strict quality control procedures.

1A Material Safety Data Sheet (MSDS) is a widely used system for cataloguing information about the properties of a particular substance and is intended to provide professional users with procedures for handling that substance in a safe way. is a form containing data regarding the properties of a particular substance. MSDS are not primarily intended for use by the end user. That is where user manuals and labels are for.

PRODUCTIONPRODUCTION

2STMC stands for Standardized Test Methods Committee. It is a worldwide organization which draws up and promotes standardized tests methods for printer cartridges.

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2) Cleaning and DryingDuring the cleaning process all remaining ink is removed from both cartridge and print head. This process takes place at a constant temperature and only water is used. Afterwards the cartridge is automatically dried. All components for 100% newly built cartridges are cleaned to take away dust etc. caught during transport.

3) Ink Filling

The cartridges are filled automatically through an

advanced vacuum technique, ensuring correct ink

volumes and providing a reliable and measurable result.

After refill each cartridge is subjected to a vacuum test.

4) Quality ControlPrimary inspection: One A4 print-out of each cartridge is printed and the result is inspected thoroughly.Second inspection: Every day 10 to 15 % of all products are subjected to strict quality control and the quality of the Ninestar product is compared to OEM and other remanufactured products.

What do they test?Print head, leaking, airship ability, odour, serial number, cartridge appearance, packaging, label, ink volumes, page life, density, colour match, photographic reproduction, adhesion, white lining, banding, line raggedness, inter colour bleed, curl, drying time, highlighter resistance, simple light fastness, shelf life, etc. Ninestar uses SMTC2 standards (Standardized Test Methods Committee, an initiative from the US) to test all its products. All procedures and standards are designed to produce 100% compliance with client specifications which allow objective comparison with OEM products. Ninestar actively cooperates in the improvement of existing tests and the drawing up of new ones. Because of its intensive cooperation Ninestar is allowed to use the STMC logo on its products, packaging and POS material

and is only one out of four manufacturers in the industry to do so.

5) Sealing and CodingAll cartridges are tape sealed and protected by clips where appropriate. Each cartridge is stamped with a production code stating both date and batch number.

6) Packing and DistributionThe cartridges are labelled, sealed in a poly-bag and packed in boxes with private, neutral or Ninestar label as required. The distribution is handled by specialized distributors.

PRODUCTIONPRODUCTION

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R&D EffortsNinestar has a professional R&D department of approx. 335 engineers which seek continuously for process and product innovations:• Ink R&D: 35 engineers• Ink cartridge R&D: 150 engineers• Laser cartridge R&D: 150 engineers All engineers employed at Ninestar have academic degrees of the highest level in either technology or sciences and cooperate closely with specialists from Japan and the US. Futhermore, Ninestar has signed cooperation agreements with well-established research and academic institutions for fundamental research. The R&D department of Ninestar has also obtained the title of R&D Centre for Academy and Research, a unique achievement within the industry.

Furthermore, the R&D department of Ninestar is also a State Key Laboratory of Fine Chemicals, which indicates that the R&D department of Ninestar is a staterecognized R&D that applies strict rules and processes and uses the most modern tools, resulting in high-quality products.

‘FIRST TO MARKET STRATEGY’ • July 2001: First to introduce non original cartridge with compatible chip for Epson T017/TO18 cartridges.• March 2002: First to launch innovative ‘sponge-free’ ink cartridge.• April 2004: First successful attempt to introduce ink cartridges compatible with Canon with ‘micro-pressure’ technology.• October 2006: First company to introduce alternative products for Epson’s new 9-electrode printers, six months before any other competitor.• November 2007: Launch of EverbriteTM

Durable Pigment Ink.• November 2007: STMC certificate as one of only four manufacturers.• April 2008: Launch of compatible cartridges Canon’s PGI 5 and CLI 8 with a unique innovative design and an in-house built chip.

Selina, R&D of Ninestar’s MyInk: “All raw materials we use for the production of EverbriteTM and GloriaTM are of the same quality OEM uses. Furthermore, we have taken out over 100 patents of our own on our inks. The quality of EverbriteTM is equal to OEM quality, proven by test results of the RIT. Not only is our pigment ink of high quality, our ink GloriaTM is also UV

resistant. This is a remarkable achievement because it is not at all easy to develop a dye-based ink which is UV resistant. Nonetheless, Ninestar achieved this after a long and extensive R&D process.”

R&D

1The Rochester Institute for Technology is a university institution specialised in technical training. In the printing industry the RIT is has built up a solid reputation because of its Imaging Products Laboratory (IPL), which focuses on testing the quality and performances of components, systems, products and output.

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InkThere exist two types of ink, dye-based andpigment-based ink. Dye-based ink is water based. This means the ink is not water and sunlight proof. Pigment ink do is water proof, stains less, the colours are more vivid and the print lasts longer even when exposed to sunlight. Almost all black inkjet cartridges contain pigment ink and there is a tendency to use pigment ink for colour cartridges too.

As mentioned earlier on, Ninestar has developed two inks of its own, GloriaTM (dye-based) and EverBriteTM

(pigment-based). The ink Ninestar uses in its cartridges is of equal quality as OEM ink. Some characteristics of the high-end quality EverBriteTM ink: • Crisp dark text• Vivid graphics• Amazing pictures• Discolour proof• UV and ozone resistant• Documents and photos with a long life span• Smudge and water resistant prints• Quick-drying ink• Rub and highlighter resistant• Perfect results on every type of paper Ninestar uses EverBriteTM ink in its alternative HP, Epson and Canon cartridges. Moreover, whenever an OEM uses pigment ink in one of its cartridges, Ninestar does so as well. In this way you can always be confident there is no difference in quality.

Ninestar EverBriteTM technology has caused a breakthrough in the print performances of pigment ink. It is the first alternative pigment ink that offers similar or even better quality than OEM ink according to the professional journal LYRA.

The Rochester Institute of Technology (RIT)1 is the first independent institute in the world that focuses on testing aftermarket printer supplies. In the different pigment ink tests by the RIT, Ninestar’s EverBriteTM always outshines the rest.

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Chip DesignThe majority of OEM cartridges are provided with a chip that communicates with the printer. Without this encrypted chip the printer does not work. OEM manufacturers protect these chips through different patents.

Ninestar designs, develops and produces a proper series of chips for usage in inkjet and laser cartridges. All designs take into account the intellectual properties and OEM patents and offer 100% compatibility with the printers and cartridges, even in cases of mixed usage (e.g. one original tri-colour cartridge and one compatible black cartridge). Ninestar cartridges and chips work in the same way as OEM cartridges and chips do.

The chip department of Ninestar sells over one million chips a month. Ninestar possesses over 70% of the worldwide market of compatible chips. The production capacity of these alternative chips is unlimited so they can without any problems, cope with an increasing demand. Ink CartridgesTraditional ink cartridges are provided with a sort of pump system including a sponge within the cartridge and this sponge serves as an ink reservoir. The biggest disadvantage of this system is that you can never use the total amount of ink available, there will always be some left over which you cannot use. Ninestar has found a solution to this problem, they have developed a sponge free ink cartridge which leaves almost no ink.

The inks Ninestar uses in its cartridges are developed and produced in-house. As a result they have full control of the process and they can offer its customers a continuous high standard of quality.

Ninestar also offers an EcoSaver series. These less

TECHNOLOGY

“Morbi quis elit nec tellus luctus laoreet eget quis eros. Quisque ullamcorper tempus bibendum. Proin placerat blandit faucibus.”

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environmentally damaging series reduce the print costs substantially. The difference is in the replacement of separate ink tanks when empty, instead of replacing the entire cartridge when e.g. only one colour out of three is empty. The EcoSaver series are spongeless cartridges, so you can use up to the last drop.

Toner CartridgesThe different components of a toner cartridge determine the quality of the printing process. To give you an idea of how such a toner cartridge works, a short explanation on the printing process of a laser printer can be found hereunder:

1) Preliminary PhaseA PRC (Primary Charge Roller) divides an equal and magnetic loading over the surface of the print roller.

2) Magnetic Discharge The surface of the EPC drum is partially discharged by means of a beam of light (generated by a laser scanner).

It is the mission of Ninestar to achieve the highest printing quality possible with its

compatible laser products, which is achieved through research and continuously improving

the toner cartridge. That is why the most crucial parts are in-house developed and produced e.g. the development roll, the

transfer roll and the cleaning blade. Because of these in-house processes Ninestar can offer its

customers a continuous high-end quality.

This laser switches on and off over 1,000 times a second and projects the image as a pattern of dots on the magnetic printing roll.

3) DevelopmentThe Magnetic Developer Roll attracts toner parts on the parts of the printing roll exposed to the laser.

4) Toner TransferThe toner hopper transfers the toner parts that make the image on the paper. 5) Toner FuserThe toner on the paper fuses with the paper when it passes through the hot fuser unit and the printing roll.

6) CleaningThe printer/cleaning blade scrapes the unused toner parts of the rotating drum.

PAPER TRAY

LaserUnit

Toner HopperToner

HopperToner

Hopper

Fuser

PhotoreceptorDrum Assembly

Paper Exit

1

2

3

4

5

6

Picture 1: The printing process of a laser printer

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Corporate social responsibility (CSR) is the

responsibility that an enterprise is willing to

undertake in their corporate decision making

by honoring next to Profit also two other

P’s, People and Planet. Planet stands for an

environmentally friendly corporate management

and People stands for a healthy company ethics.

Ninestar attaches a lot of importance to both

points. Ninestar’s Company EthicsOn 20 April 2007 the board of Ninestar signed a charity agreement with the Chinese Red Cross (CRCF). The agreement allows Ninestar to donate one million Chinese yens (approx. 110,000 EUR) to the CRCF to set up a special fund in order to help children suffering from leukaemia. This fund was baptized the ‘Angel of love’ fund. To ensure money is being added to the fund on a regular base, Ninestar donates a fixed percentage of its turnover to the fund. Besides this initiative Ninestar also sponsors several local charities and other activities. Ninestar has been recognized for these initiatives by both local and national governments, indicating that Ninestar does not only care about Profit, but also about People and Planet.

It goes without saying that Ninestar tries to apply a healthy company ethics. The company takes good care of its employees, the local community and its clients. Ninestar treats them with the utmost respect and is fully conscious it needs the support of all stakeholders. Without them the continuous growth they now experience would not have been possible.

The personnel of Ninestar receives an honest salary and is offered a healthy, clean and secure work place. Ninestar has at its disposal a number of official safety certificates. Also dedication and loyalty, highly valued in

Chinese culture are values that are remunerated, not only during working hours but also outside the company.

Ninestar is always ethically correct by providing the client an alternative inkjet or toner cartridge that always works and with a very competitive price compared to the more expensive OEM product. When you manufacture more than one million products per month a large part of those are for repeat purchases. Ninestar does not focus on one-shot buyers. They not only put a lot of effort into persuading the client to buy its products but also aim to keep them as a client once they have decided to buy a Ninestar product. That is one of the main reasons that they have experienced an impressive growth in their relatively young existence. In no less than ten years Ninestar has sold more than 100 million cartridges. Such a result can only be obtained through ethically correct business.

Ninestar also has the utmost respect for its competitors and always looks for a 100% legal solution. They always try to avoid patent infringement which is why Ninestar invests a lot on R&D, not only to avoid such infringements, but also to build a proper portfolio of patents.

Ninestar not only aims to be a high-quality manufacturer, but also aims to be an

excellent employer. In 2007 the company obtained a score of 85% on a social

accountability audit by Staples.

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purchased. In case a product purchased does not make it through the quality control, it will be processed in an appropriate way.

Ninestar’s Environmentally Friendly Corporate ManagementNinestar also attaches great importance to its environmentally friendly corporate management. It has obtained the important ISO 14001 Environmental Management System. This is an internationally accepted standard which defines a good environmental management system. With this ISO 14001 certificate Ninestar shows the interest they have taken in the environment. Furthermore, Ninestar has linked the ISO 14001 to the ISO 9001, the standard certificate regarding quality. By doing this you can prevent e.g. that a measure taken to reduce the impact of a product on the environment has a negative effect on the quality of that same product. Instead of undoing any efforts made by the other, they are linked to obtain the best possible result.

In contrast to some other alternative suppliers Ninestar has no collection program of its own. They do however use specialized collectors and professional intermediaries. Ninestar has a very strict and careful purchase strategy so that only products which can be used are being

The environmental consciousness of Ninestar is reflected in:• The reuse of inkjet cartridges• The reuse of toner cartridges or components• The cleaning process with 100% water• The manufacture process with low carbon dioxide emission• The Eco Print system• The Ecosaver approach• The development of ink cartridges without sponge• A functional waste management system• A water treatment plant

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Ninestar offers its clients a wide range of products. Whatever brand or type of printer you have, Ninestar will probably have supplies for it:

Laser CartridgesNinestar is one of the top 20 suppliers of laser toners worldwide. The product range of Ninestar includes over 200 remanufactured and compatible printing supplies of both toner cartridges and toner kits. Ninestar offers compatible supplies for the following brands:

• Brother • Canon • Dell • Epson • HP • Konica Minolta

Inkjet CartridgesNinestar has acquired a dominant position in the manufacturing process in alternative inkjet supplies. These supplies have built up a solid reputation because of the superior quality and the competitive price. A Ninestar cartridge always gives you value for money.

The product range of Ninestar includes over 200 alternative newly built cartridges and reused cartridges of the leading OEM brands in the industry:

• Brother • Canon • Dell • Epson • HP• Lexmark

• Kyocera Mita • Lexmark • Ricoh • Samsung • Xerox/Tektronix

The packaging of the inkjet cartridge contains, next to the usual technical information such as printer and cartridge type, also a unique a recognizable image. Whenever a client needs a new cartridge they can easily

recognize the cartridge they need, no need to remember the type of printer or cartridge. All you need to remember is the image of the sea horse or apple on the package.

The result: You can always find the correct cartridge with ease!

PRODUCT RANGE

1SGS is a leading supplier of specialised and integrated environmental services. They provide inspection, testing, certification & verification services to ensure that products, services & systems meet quality, safety & performance, etc. 2The CE marking (Conformité Européenne in French) certifies that a product has complied with EU consumer safety, health or environmental requirements.3See environmentally friendly corporate management p. 9 23

Industry CertificatesIn its relatively young existence, Ninestar has already acquired a number of important certificates:

Since April 2002 Ninestar has the ISO 9001 certificate, provided by the Swiss SGS1. This certificate guarantees quality processes and Ninestar quality in general.

In October 2003 Ninestar received the CE Safe Certification for Electronic Equipment Products2.

As from 20 May 2005 Ninestar has obtained the ISO 14001 Environment Management System certificate.

Ninestar also has acquired the STMC certificate (Standardized Test Methods Committee, an initiative from the US), the RIT Report certificate and the status of Quality and Service Assured Brand of the CCA in China.

Public RecognitionIn the last few years Ninestar has obtained a lot of public recognition from specialised literature like ‘Recharger’ (US), ‘Recycler’ (UK) of consumer-orientated magazines like ‘Wired Test’ or ‘eDigital Photo’ for all the efforts made by Ninestar in the field of research and development, production and quality.

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A Ninestar product is manufactured under the strictest conditions possible. Through continuous research and advanced R&D, Ninestar ensures its products are adapted to the specific demands of the printers for which they have been developed. Ninestar uses the most modern product technologies which are continuously tested through the most strict quality standards (ISO 9001). This is a process in which Ninestar invests a lot to assess both its R&D and production department in order to adjust and improve where necessary and to be able to offer the best products in the industry.

Ninestar offers a two year warranty on both inkjet and laser products, this warranty takes effect as from the day of purchase. In case a product purchased is faulty after correct use this warranty entitles the user a new Ninestar product within the period of warranty.

The use of Ninestar products has no influence on the legal warranty of the OEM printer and will not cause any damage or early wear and tear. Ninestar cannot be held responsible for any damage if there has been incorrect usage of its products and has taken all necessary measures to avoid this.

In the improbable case that indisputably can be shown that the use of Ninestar products has caused damage to a printer, Ninestar will consult with the local distributor to solve the problem together. In the first instance please contact your local Ninestar distributor with information of the type of printer, the Ninestar product concerned and the problem itself. Ninestar and its local distributor are entitled to call in a third person to check whether the damage was caused by correct use of the Ninestar product.

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• At a Crossroads: The Past, Present and Future of Ink Jet Ink, Lyra Research Inc., Newtonville, 2009

• Brewer C., Key Trends In EP Hardware and Supplies, Remax Asia Pacific, sl., 15 oktober 2009

• Littman D., Cheap Ink Probed. In: PC World, USA, 2003

• The Carbon Footprint of Remanufactured Versus New Mono-toner Printer Cartridges,

Centre for Remanufacturing & Reuse, sl., sd.

• Cutler N., Risk vs. Reward: Empties Management. In: Imaging Spectrum Magazine, sl., 2007

• Taylor N., Printer Costs and the Environment, Kyocera White Paper, sl. 2008

• Diamond A., Beyond Cartridges: A New Profit Center for Rechargers. In: RECHARGEasia., sl., 2007

• Diamond A., The End Game: Recycling Useless Cartridges, In: RECHARGEasia., sl., 2007

• Gell M., Carbon Footprints and Ecodesign of Toner Printer Cartridges,

Xanfeon Energy & Envrionmental Serivces, UK, 2008

• Ninestar Asks ITC to Reexamine Patent-Right Standards, In: Hard Copy Supplies Journal., Lyra, 2007

• Hall R., The Inkjet Aftermarket: An Economic Analysis, Academic Paper, sl., 1997

• Miao C., Consumer Myopia, Standardization and Aftermarket Monopolization, sl., sd.

• http://www.ninestarimage.com

• http://www.therecycler.com/news/12576/Ninestar-launches-leukaemia-fund.aspx

• http://www.freerecycling.com/Corporate/News_Articles/Recycling_Cartridges.htm

• http://www.capv.com/public/Content/INFOSTATS/Articles/2007/07.10.2007.html

• http://www.legendholdings.com.cn

• http://www.legendcapital.com.cn

DisclaimerThe contents of this brochure has been taken from references which have been considered reliable. We cannot be held liable for the authenticity and completeness of this information. The contents of this brochure is for information purposes only and does not entitle the user to a legal claim or any recourse on the company. The Ninestar brand and logos and any other brands mentioned are registered trademarks protected by copyright and remain property of the brands in question. Any use of the Ninestar brand or logos and/or any other brands are registered trademarks and cannot be used without prior and written permission of the proprietor of the trademark. The infringer will be held responsible for any infringement made on the brand. Nothing out of this brochure can be duplicated or made public trough print, copy, microfilm or any other means without prior written permission of Ninestar. (info@ninestar.net)

REFERENCES

WWW.NINESTAR.NET

For any further information please contact your local dealer: