Xenomouse

Dear Mr. Dunlap,

The Medical-Surgical division team has concluded its Lead-user process and recommends work on the following four promising ideas:

1. The economy line of surgical drapes using low cost materials that will enjoy immediate acceptance in currently cost-containment environment as well as in developing countries.

2. The Skin Doctor line of hand-held devices for antimicrobial protection that can both layer antimicrobial substances on surfaces being operated on and mop up surface liquids.

3. Antimicrobial armor product line that protects catheters and tubes from microscopic infections.

4. Upstream containment of infections by detecting specific contaminants and targeting individuals for interventions.

The first 2 recommendations are straight forward linear extension of existing 3M product lines, which will provide immediate boost to the stagnating revenues of our health division. While the antimicrobial armor product is a departure from past activities of 3M, it opens doors for new opportunities. It represents a breakthrough product because that is consistent with the current business strategy of reactive infection control but would provide the company entry into a new $2B market. An opportunity of this magnitude (85% of the current revenues of $2.35B from health care products) is compelling reason to undertake the project. These products incorporate proprietary 3M technology with patent protection as well as will lead to double-digit annual growth. The 4th idea requires combining technologies from more than one core area which is consistent with 3M historical approach to departmental cross-pollination or bootlegging of discoveries. The staggered introduction of products we have proposed, Exhibit 1, will allow us utilize the revenues generated from introduction of product lines from the Lead user workshop to fund the development of future recommendations. This

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