NEW MARKETS FOR POLYMERCAPTANS - 2008 AND BEYOND

1. Gabriel Performance Products NEW MARKETS FOR POLYMERCAPTANS - 2008 AND BEYOND Rev. 9/26/08

2. Strategic Growth Plan • Markets for Growth: • Road Markers / Traffic Paint • NSF Potable Water applications • Commercial Flooring – Low Odor [ 800LO] • Metal Tanks / Drums/ Rail / Bridge Coatings • Insulated Glass / Window Assembly [Polysulfide] • Electronics – Circuit Boards • Anchor Bolts / Cement • Joint Sealant Compounds • Composites – Aerospace • Composites – Industrial • Manhole Covers

3. ANSI/NSF 61 certified products ANSI/NSF Standard 61 is the government standard for products in contact with potable water. Testing involves investigation of product formulas by toxicologists and analyzing for toxic contaminants after immersion of the products in cold water ,domestic hot water (140 deg F) or commercial hot water (180 deg F)

4. ANSI/NSF 61 certified products Mercaptan hardeners are ideal candidate epoxy curatives for products in contact with potable water : • They have very low toxicity profiles • They are not water soluble

5. ANSI/NSF 61 certified products La-Co Industries Elk Grove IL Epoxy Stik Devcon Danvers MA Stainless Steel Putty Loctite Hartford CT Metal Magic Steel NCH Irvine TX Mega Stick Quik Steel Quik Cure Neptune Research West Palm Beach FL Syntho-Steel Blue Magic Conroe TX Quiksteel Copper Repair Quiksteel Epoxy Paste Quiksteel Plastic Repair Quiksteel Steel-Reinforced Epoxy P Quiksteel Underwater Repair

6. ANSI/NSF 61 certified products Polymeric Systems Elverson PA Faststeel® E20M12 PSI Poxy Quikcopper® Quikplastik® Repairitquik® Protective Coating Co. Allentown PA PC-Plumbing Epoxy Putty PC-Metal Rectorseal Houston TX RectorSeal EP200 Epoxy Putty RectorSeal EP400 Epoxy Putty

7. Construction Chemical Anchors Description • Chemical anchors typically consist of a two-part adhesive that is used to anchor threaded dowels, reinforced steel bars (rebar), or other mechanical inserts to concrete, stone, or masonry substrates. Chemical anchors are most often used in commercial and public construction. Bonded anchors ensure no stress on the substrate unlike mechanical anchors as the chemical bonds with the material surrounding it. • Bonded anchors will also give a secure fixing in poor quality substrates. They are also ideal for close edge and spacing applications

9. Construction Chemical Anchors Available US Market 04 (MMLb, $MM) 10,160 Estimate of available global market $250MM Profitability - Gross Margin 50%+ Growth Rate 3.5%

10. Construction Chemical Anchors Key Drivers • Increase in commercial and public concrete construction • Steady residential construction • More user awareness and acceptance of chemical anchors • Product and packaging innovations will curb commoditization

11. Construction Chemical Anchors Key Restraints • Raw material prices and availability • Construction industry often hesitant to accept innovation

12. Construction Chemical Anchors Current technologies Market Share US Epoxy resins 75% Methacrylate 13% Vinyl ester/unsaturated polyester 12% • Vinyl ester/polyester is a mature technology and expected to decline. • Epoxies are approaching maturity. • Methacrylates are expected to make gains as they rise in awareness. These gains are likely to be largely due to the further formulating of methacrylates to increase bond strengths

13. Construction Chemical Anchors In the chemical anchoring market, there are two main types of product developments taking place: Technological developments- vinyl ester/polyesters can only support light to medium loads. Epoxies have become the dominant technology, mainly because of their high strength. Methacrylates offer fast curing and high strength. Packaging developments - most vinyl ester/polyester chemical anchors are pre-packaged glass capsule anchors. These are dropped into place and broken with a hammer and chisel or with a special tool called a spinner. Epoxies and methacrylates are packaged in twin side-by-side cartridges or concentric cartridges. Innovations include snap off tips for cartridges.

14. Construction Chemical Anchors Most products are typically sold in a twin cartridge or twin-pouch system at typical prices of $25-$35 for a 360 ml cartridge

15. Construction Chemical Anchors Key customers • 5-10% of products go directly to construction companies. • Over 90% of products are sold through 2-step distribution systems to builders supply merchants, mass retailers and DIY chains.

16. Construction Chemical Anchors Key performance tests • Products must carry loads, resist vibration and have good weathering resistance and resistance to common construction chemicals. • Products must meet ICC Specs. e.g. Acceptance Criteria for Post-installed Adhesive Anchors in Concrete Elements, Subject AC308-0606-R1 (BG/RK) • European Technical Approval (ETA) is needed for a construction product

17. Construction Chemical Anchors Unmet needs/opportunities for differentiation • Fast cures at low temperatures • Higher strength methacrylate systems • Less hazardous curing agents • Improved moisture resistance • Better heat resistance (fires) • More user-friendly packaging

18. Construction Chemical Anchors Key competitors US Market Share Hilti Inc 33 Simpson Strong-Tie Co., Inc 17 Powers Fasteners 13 ITW Red Head 6 BASF 4   Engineering support service and close working relationships with customers are considered major competitive factors.

19. Construction Chemical Anchors Other US suppliers Adhesives Technology, FL Axson, SC CGM, PA ChemMasters, OH USP,Livermore CA E-bond, FL Epoxy Systems, VA Euclid Chemical, OH Five Star Products, CT Fox Industries, MD Gill Industries, SC

20. Construction Chemical Anchors Other US suppliers IPA Systems, PA Kaufman Products Inc, MD L&M Construction Chemicals, NE Metalcrete Industries, OH MKT Fastening, LLC, AK Prime Resins, GA Sika Corporation, Superior Epoxies and Coatings, GA Symons, IL Unitex, MO Wej-It, OK Williams Form Engineering, MI W.R. Meadows, IL

21. TRAFFIC PAINTS AND REFLECTIVE MARKER ADHESIVES Polymercaptans offer: • Control curing speed to make fast, medium or slow cure products • Cure at low temperatures • Safety –competitive systems often use hazardous mixtures of diethylene triamine (DETA) and bisphenol A • Availability – some manufacturers use AEP, which is currently unavailable

22. TRAFFIC PAINTS AND REFLECTIVE MARKER ADHESIVES Some suppliers: Epoplex Maple Shade, NJ Innovative Performance Systems, Research Triangle Park, NC (Ennis Paint/Reichhold) ROCK-TRED Corporation, Skokie, IL PolyCarb, Solon OH

23. EPOXY JOINT SEALANTS Control joints, also known as contraction joints, are cut into new concrete to control cracking and to allow for expansion / contraction. These joints are typically saw cut from 1/16" to 1/4" wide. Heavy traffic over these joints will eventually cause the edges to chip off. Joints left unprotected, and the introduction on non-compressible materials (screws, nails, nuts, bolts, pallet wood chips, etc.) in the joint will allow joint edges to deteriorate causing major spalling. The best way to protect joint edges is to fill them with a semi-rigid epoxy joint filler. These fillers can also be used to fill cracks in concrete,

24. EPOXY JOINT SEALANTS Polymercaptans offer: • Control curing speed to make fast, medium or slow cure products • Cure at low temperatures • Flexibility –polymercaptans have inherent flexibility • Safety

25. EPOXY JOINT SEALANTS Some suppliers: Prime Resins, Conyers GA Lone Star Epoxies, Rowlett TX Conspec, Kansas City KS Unitex, Kansas City MO Garon Products , Wall NJ Hilti.Tulsa OK Dayton Superior, Dayton OH Neopoxy, Hayward CA Vexcon, Philadelphia PA WR Meadows, Hampshire IL Armor Garage, Sunny Isles Beach, FL Blome International, O’Fallon MO Reltek, Santa Rosa CA Webac, Santa Anna CA

26. POLYSULFIDE SEALANTS DMDO – 1,8-dimercapto-3,6-dioxaoctane Epoxy accelerator- used in Europe Intermediate for polythioether type sealants Manufactured in Japan, France and Mexico Two main users are AC Tech and PPG in California Gabriel can manufacture this compound