FAQs. General. Highcon Products

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1 General 1. Who is Highcon? Highcon is an Israeli company, founded in 2009, that invented the first digital cutting and creasing machines for folding carton finishing and commercial applications the Highcon Euclid series. Our vision is to bridge the gap between design creativity and production capability with innovative digital technology that unleashes the power of paper. 2. How many machines have been installed and where? Around 50 machines have been installed all over the world ( December 2017) 3. Do Highcon products work only with digitally printed sheets? No, it doesn t matter how the sheets are printed, analog or digital. 4. What applications does this technology enable? The Highcon digital cutting and creasing technology enables packaging (folding carton and micro flute), commercial applications, greeting cards, sheet fed labels, promotional materials, folders, stationery, point-of-sale, display and a wide variety of 3D applications. 5. How does Highcon technology compare with conventional die-cutting? The Highcon technology replaces a complex, expensive and slow die-making and setup process, with an in-house controlled digital system, delivering improved responsiveness, design flexibility and enhanced efficiency. 6. How does Highcon technology compare with laser cutters? The Highcon machines crease and cut in one pass and both processes are digital. Advantages vs laser are productivity, creasing format, substrates thickness and digital stripping. Also, laser cutters use a half cut to produce a crease, which is frequently not acceptable in the packaging market and reduces the speed. Highcon Products 1. What are the Highcon products? The Highcon product portfolio includes the Highcon Euclid series and the Highcon Beam 2. What is the Highcon Beam? The Highcon Beam handles B1 sheets up to 5,000 sheets per hour and takes digital cutting and creasing into mainstream production. It is suitable for mid-large folding carton converters, large commercial printers (B1), large trade finishers. Main benefits: High productivity enables strong ROI through analog to digital conversion and introduction of new high value opportunities with a wide range of paper/carton thicknesses. 3. What is the Highcon Euclid III? The Highcon Euclid III is a third-generation machine that offers application versatility by digital cutting and creasing. It is suitable for small folding carton converters, commercial printers (B1), trade finishers. Main benefits: a wide range of new, high value applications (Variable Data Cutting, 3D Modeling and intricate designs) and a solution for short to medium runs at affordable price.

2 4. And the Highcon Euclid IIIS? The Highcon Euclid IIIS offers digital cutting and creasing in a B2/29in format. It is suitable for conventional converters and commercial printers working in B2 format as well as offering a complete end-to-end digital workflow for digital print service provides. Main benefits: all of the capabilities and opportunities of digital cutting and creasing for smaller format printers. 5. How many sheets can the Highcon machines handle per hour? Following are the maximum speeds: Highcon Beam 5,000 B1 sheets/hour, Highcon Euclid III 1,500 B1 sheets/hour, 2,000 B2 sheets/hour. With Euclid Productivity Boost option o o B1 from 1,500 to a maximum speed of 2,250 SPH B2 from 2,000 to a maximum speed of 2,750 SPH **Speed is a function of layout imposition and substrate. 6. How many sheets can be converted with a single DART die? Up to 20,000 on the Highcon Beam and the Highcon Euclid 7. How long does it take to set up the machines? On average, it takes around 15 minutes for a B1 job, which is a fraction of the current conventional process. The Highcon digital process means that the set up becomes much easier and shorter. 8. Is the speed automatically adjusted? The speed is set automatically on the machine but the operator can adjust the speed according to requirements. 9. How consistent are the creases? They are consistent up to 20,000 sheets. The crease varies according to the type of the substrate, like conventional die-cutting. 10. Which substrates do the machines support? Highcon Euclid III cardboard and label thickness (8-24pt.), micro flute (mm) N+F+G up to 1.2 (47pt.) cutting and creasing. Highcon Beam cardboard and label thickness (8-36pt.) cutting, (8-24pt.) creasing, micro flute (mm) N+F+G cutting and creasing, corrugated (mm) up to 2mm (78pt.) cutting and creasing. 11. What are the features of the Highcon portfolio? In addition to the core digital cutting and creasing, all the machines have optional modules: CAD Light Editor, Highcon integrated Digital Stripping (HIDS), Variable Data Cutting (VDC), and 3D Modeling. The laser is capable of cutting, etching, kiss cut, half cut, and perforation. Optional Modules 1. CAD Light Editor The machine will run with Esko ArtiosCAD, Adobe Illustrator, EngView Package Designer, any software that you already use that can export a DXF file. The Highcon CAD Light Editor add-on software module, powered by Esko or EngView, allows operators to take full advantage of the flexibility of digital technology by enabling: last minute editing of crease and cut lines,

3 corrections, design changes, optimization, nick optimization, increasing or decreasing size of nick, adding and removing nicks, stripping lines. 2. Highcon Integrated Digital Stripping Unit The Highcon Integrated Digital Stripping Unit removes fine decoration cutting waste from as small as 2x2mm and up to 60x60mm and can handle text, signs, small and complicated shapes. Activated by the press of a button, the HIDS removes waste between items. There is no need to buy a tool for each job or to set it up. 2 brush sets mechanically remove the waste: the top brush separates the waste particles by rotating, the bottom brush hits the hanging waste and removes it, dropping it into a waste bin below which only needs changing about once every 2,000 sheets. 3. Advanced Registration In addition to the registration of the sheets mechanically on the machine, in the new advanced registration module sensors align the page to a printed mark placed at least 7mm from the sheet edge, to reduce errors that can occur in the printing. This is particularly relevant for digital printing as it compensates for inaccuracies of the alignment between the printed image and the sheet leading edge. 4. Variable Data Cutting (VDC) Module This new optional module has the ability to perform variable cutting per up as well as per sheet enabling customization, personalization and serialization and security applications. Customers generate a multi-page PDF, load to the machines DFE and the VDC software maps to Highcon cutting layers. Customers generates a multi-page PDF, load to the Euclid DPE, and the VDC software maps to Highcon cutting layers. 5. Productivity Boost Option for Euclid machines The Highcon Productivity Boost package extends the capabilities of the Highcon Euclid platform, allowing customers to produce more jobs per-shift, with higher profitability, enabling a faster return on investment A combination of software development and mechanical upgrade to support higher productivity, increases the maximum speed of the machine: B1 (106cm/42in.) from 1,500 to a maximum speed of 2,250 SPH, B2 (76CM/29in.) from 2,000 to a maximum speed of 2,750 SPH. Following field implementation of the productivity boost with existing customers, average job speed has risen: for B1 (106cm/42in.) jobs between 15%-20%, for B2 (76cm/29in.), jobs between 25%-40% 6. 3D Modeling Highcon 3D Modeling software adds a brand new high value application to customers arsenal, which leverages the key advantages of Highcon technology. The Highcon digital technology includes high speed, accurate digital cutting of paper and paper based substrates. The cutting can be made using variable data for each single sheet. Customers have no need for any previous knowledge of 3D printing. Highcon has developed a dedicated workflow allowing the conversion of standard 3D models to separate layers that can be cut on Highcon machines. Assembly is carried out offline and can be done either by mechanical assembly. or by gluing sheets (not part of the package)

4 Technology 1. Is the Highcon technology patent protected? Yes, we have dozens of patents and patent applications covering our products 2. What is the core Highcon technology? Highcon s proprietary polymer technology replaces the traditional die (Highcon patented Digital Adhesive Rule Technology DART ) and the laser cutting performance reduces burn marks and haze effects. 3. How do you do the cutting? We use high power CO2 lasers combined with the most advanced scanning system and unique optics design. This enables high quality cutting as well as the unique capabilities of intricate shapes and personalized cartons. Partial cutting is also simple and can be performed by defining in the software. It is also possible to do perforation, marking and of course because of the digital technology you can cut on a crease and produce kiss cuts. The Highcon Beam has 3 1,000 watt lasers and the Highcon Euclid III has watt lasers. 4. Why do the sheets pass in portrait rather than landscape format? In order to maximize the coverage of the lasers field of view without having to add another laser. 5. How do you do the creasing? Highcon uses completely new and unique DART (Digital Adhesive Rule Technology) to rapidly lay down or place high quality crease lines. The lines are created using a sophisticated writing head designed to selectively deposit a 3D creasing rule made by a UV curable resin. The writing head velocity is 8.5m/min and then the foil is cured with UV light, making this an extremely fast process, especially in comparison to anything that exists today. The nozzle can be adapted to suit thicker substrates. 6. What are the consumables I need? There are only 3 consumables required to create the DART: the DART polymer (UV curable resin) which creates the 3D crease lines. The DART Foil on to which the crease lines are written. These foils vary from machine to machine. The DART Counter substrate which supports the high quality creasing and is replaced only after approximately 500,000 impressions or 6 months. 7. Is it possible to re-use a DART die? No, you may encounter registration issues, and lost DART foil flexibility, and rules can collapse. 8. What are consumables storage conditions? Temp 15 < T < 30 C. Expiry if stored according to recommended conditions, the polymer will last for six months from delivery date. The foil and counter will last for 24 months. 9. Disposal The written DART Foil and the DART Counter can be disposed of in the municipal garbage as defined by the local regulations. The DART canister and the purge container of the writing system must be treated as chemical waste and disposed of as required by the local regulations regarding disposal of chemicals.

5 Quality 1. Are the creasing lines the same as the regular die cut plate? We have performed numerous tests with Twin Albert equipment checking folding force, erection force and spring force which prove that our technology yields result comparable to conventional technology. Products from our machines work seamlessly with folding/gluing machines and filling lines. 2. How can you produce a quality crease without a male/female pair? The written rules on the DART foil act as the male. The counter is a specially developed material with mechanical and elastic properties that take on the shape to the pressure depths of the rule and returns to its original state after the creasing has been completed. 3. Is the crease quality influenced by the carton thickness? The Highcon rules react similarly to the conventional creasing but we have an advantage in the ability to control the rule shape and the pressure. 4. How do you handle different inks/coatings? To optimize crease quality with different types of inks or coating, we can control the drum pressure or the nozzle shape. We currently support most types of enhancement (varnish, UV curable coating), but of course there is always room to test new and different coatings. 5. How do you cope with heat effects in the cutting? The Highcon machines use many new technologies and designs to optimize productivity and quality. For example, we optimize the speed of the laser, control the air regime under the conveyor belt and other technological solutions which reduce the effects of the laser hear and produce results comparable or better than other laser cutting devices. We continue to test and improve the range of substrates handled, and have had great feedback from customers and prospects. Compliance 1. How do sheets cut on the Highcon machine comply with food legislation? One of the key benchmarks with respect to the chemical reaction between the lasers and the substrate is the compliance with the demands for food contact. In a recent test carried out for Highcon on Folding Boxboard (FBB) GC2 substrate, by ISEGA, the German Research and Inspection Company, analysis showed no difference whatsoever in the substrate after laser cutting. There was no reported odor, nor was there any chemical reaction observed. Equally, with respect to the creasing process, we are confident that there is no contact between hazardous material and the substrate. Support 1. How do you support the product with technical support and parts? Highcon Customer Support is a global operation dedicated to providing first class customer support for the entire lifecycle of Highcon products. From initial installation preparation, through implementation, application and ongoing daily support, we ensure the customer s system is fully operational and productive. The support service is based on a combination of direct and partner access.

6 2. What is the Warranty period? All machines come with one-year full warranty. Following this customers have a choice whether to take a service contract or Ad Hoc service. 3. Are the lasers covered as part of the service? The laser life span is very long and the laser, like all other parts of the machine, is covered by Highcon s optional service agreement.