INJUNCTIONS DAMAGES

1. INJUNCTIONS & DAMAGES

3. P&G at a Glance Number of Brands 300 Countries of Operations 80 Number of Employees 138,000

4. 23 Billion-Dollar Brands� P&G�s billion-dollar brands are the core of the company�s product portfolio, representing about two-thirds of annual sales and a greater percentage of profit. These brands are leaders in their respective categories and platforms for innovation that will be the source of organic growth for years to come. #1 Feminine Care Brand in the World - Always Clean and Always Fresh innovations have propelled the brand to an all-time high market share of more than 55% in the U.S. Head & Shoulders has nearly doubled its annual sales in just four years, making it the second largest shampoo brand in the world. #1 Toothpaste Brand in the U.S. � Crest - Leading innovations such as Pro-Health and Nature�s Expressions have helped make Crest the #1 toothpaste brand in the U.S. Newest Billion-Dollar Brand - Gain has doubled sales over the last five years by delighting scent-seeking consumers. #1 Hair Care Brand in the World - Pantene, the world�s leading hair care brand, is sold in about 100 countries and is fast approaching $3 billion in annual sales. #1 Baby Care Brand in the World � Pampers - By continuing to reach more consumers in markets such as China and India, Pampers has become P&G�s first $7 billion brand. #1 Retail Skin Care Brand in the World - Olay has more than doubled sales in the past four years behind industry-leading innovations such as Olay Regenerist and Olay Definity. #1 Laundry Detergent Brand in the World � Tide - Already the world�s leading laundry detergent brand, Tide widened its lead by posting high-single digit sales growth in fiscal year 2007. #1 Men�s Shaving Brand in the World - Mach3 delivered double-digit sales growth in developing markets last year.P&G�s billion-dollar brands are the core of the company�s product portfolio, representing about two-thirds of annual sales and a greater percentage of profit. These brands are leaders in their respective categories and platforms for innovation that will be the source of organic growth for years to come. #1 Feminine Care Brand in the World - Always Clean and Always Fresh innovations have propelled the brand to an all-time high market share of more than 55% in the U.S. Head & Shoulders has nearly doubled its annual sales in just four years, making it the second largest shampoo brand in the world. #1 Toothpaste Brand in the U.S. � Crest - Leading innovations such as Pro-Health and Nature�s Expressions have helped make Crest the #1 toothpaste brand in the U.S. Newest Billion-Dollar Brand - Gain has doubled sales over the last five years by delighting scent-seeking consumers. #1 Hair Care Brand in the World - Pantene, the world�s leading hair care brand, is sold in about 100 countries and is fast approaching $3 billion in annual sales. #1 Baby Care Brand in the World � Pampers - By continuing to reach more consumers in markets such as China and India, Pampers has become P&G�s first $7 billion brand. #1 Retail Skin Care Brand in the World - Olay has more than doubled sales in the past four years behind industry-leading innovations such as Olay Regenerist and Olay Definity. #1 Laundry Detergent Brand in the World � Tide - Already the world�s leading laundry detergent brand, Tide widened its lead by posting high-single digit sales growth in fiscal year 2007. #1 Men�s Shaving Brand in the World - Mach3 delivered double-digit sales growth in developing markets last year.

5. �and counting. In addition to 23 Billion-Dollar Brands, P&G�s portfolio includes 18 brands with $500 million to $1 billion in annual sales, many of which have the potential to join the billion-dollar club in the next few years. Fusion Fusion and Fusion Power shaving systems are truly the best a man can get. These revolutionary products achieved over $500 million in sales in just the first fiscal year after launch. Herbal Essences Global annual sales of Herbal Essences have grown 40% since P&G acquired the brand in fiscal year 2002. #1 Floor Cleaning Systems Brand in the World � Swiffer reinvented surface cleaning with innovative technology and design. Swiffer sales have more than doubled over the past five years. #1 Tampon Brand in the World � Tampax - After just four years in the market, Tampax Pearl has boosted the brand to market leading share above 50% in the U.S. #1 Fabric Freshener Brand in the World � Febreze, the U.S. air care category leader, has averaged more than 25% annual sales growth over the last four years.In addition to 23 Billion-Dollar Brands, P&G�s portfolio includes 18 brands with $500 million to $1 billion in annual sales, many of which have the potential to join the billion-dollar club in the next few years. Fusion Fusion and Fusion Power shaving systems are truly the best a man can get. These revolutionary products achieved over $500 million in sales in just the first fiscal year after launch. Herbal Essences Global annual sales of Herbal Essences have grown 40% since P&G acquired the brand in fiscal year 2002. #1 Floor Cleaning Systems Brand in the World � Swiffer reinvented surface cleaning with innovative technology and design. Swiffer sales have more than doubled over the past five years. #1 Tampon Brand in the World � Tampax - After just four years in the market, Tampax Pearl has boosted the brand to market leading share above 50% in the U.S. #1 Fabric Freshener Brand in the World � Febreze, the U.S. air care category leader, has averaged more than 25% annual sales growth over the last four years.

6. P&G GLOBAL BUSINESS UNITS The GBU�s are comprised of 7 segments: Beauty Health Care Fabric Care & Home Care Baby Care & Family Care Snacks, Coffee & Pet Care Blades & Razors Duracell & Braun

7. The 3 GBUs Operate in 7 Geographic Regions: Asean, Australasia & India Central & Eastern Europe, Middle East, & Africa Greater China Latin America North America Northeast Asia Western Europe

8. P&G Beauty Care ProductsGlobal Sales: $23 Billion Cosmetics Deodorants Hair Care Skin Care Feminine Care

9. P&G Health Care ProductsGlobal Sales: $9 Billion Oral Care Pharmaceuticals

10. P&G Fabric & Home Care ProductsGlobal Sales: $19 Billion Fabric Care Dish Care Surface Care

11. P&G Baby & Family Care ProductsGlobal Sales: ~ $13 Billion Diapers Wipes Bath Tissue Facial Tissue Paper Towels

12. P&G Snacks, Coffee and Pet CareGlobal Sales: ~ $5 Billion Coffee Pet Food Snacks

13. Gillette Blades & RazorsGlobal Sales: $5 Billion Men�s & Women�s Blades & Razors

14. Duracell & BraunGlobal Sales: $ 4 Billion Batteries Electric Razors Small Appliances

16. LA Countries & Products

17. LA � Business Trends

18. IP INJUNCTIONS & DAMAGES PRINCIPLES �A wish list for the globe� P&G is on both sides of these principles Fast decision on the merits followed by the certainty of a permanent injunction Preliminary injunctions or TROs for �CLEAR� and early initiated infringement cases Damages that don�t �reward� infringement but are not overly punitive > Reasonable royalties > Patent owner�s lost profits only if circumstances warrant (�but for� test)

19. IP INJUNCTION & DAMAGES PRINCIPLES - BENEFITS Investment increased Better and cheaper products brought to consumers IP litigation reduced > �REAL� and timely injunction threats on bona fide IP infringement cases drive early and fast negotiated resolutions > P&G and most companies seek resolution outside of court whenever possible (inadequate IP injunction/damage systems prevent this)

20. KOREAN EXPERIENCE � INJUNCTIONS & DAMAGES P&G�s acquired company was sued for patent infringement � 1995 Litigation suspended pending Korean Patent Office patent validity proceedings Case sent back to Korean District Court � 2001 Court found infringement and assessed P&G with $38 million in damages > $140 Million Sales = 27% profit margin used!! > Typical profits � 10% > No damage analysis by Court � simply used patent owner�s profits multiplied by infringing products sold >> patent owner�s capacity >> market share & other players in market >> non-infringing alternative products 2006 � Appeals Court Reversed Infringement Ruling 2008 � Supreme Court affirmed Appeals Court Damages law in Korea still uncertain

21. MEXICO � PATENT INFRINGEMENT P&G filed a patent infringement lawsuit under a well established patent in the IMPI � 1999 Received a ruling of non-infringement in 2005 Appealed to Tax and Administrative Court Patent expired 2006 Case settled in 2006 Substantive ruling on infringement OK, but time-to- decision was lengthy

22. VENEZUELA � INJUNCTIONS & DAMAGES P&G owns a valuable patent on disposable diapers with barrier cuffs. Well-established patents licensed to almost every other diaper manufacturer in the world. Absorven is a local manufacturer in VZ who was clearly infringing. With no real injunction threat on damages exposure, negotiation failed to resolve. P&G sued Absorven in VZ for patent infringement-1999 Absorven counterclaimed against P&G for violating their constitutional rights (economic freedom). 2003 � case was settled (result was a compulsory license).

23. INJUNCTIONS & DAMAGES