Mestek Board of Directors September 8, 2007

1. Mestek Board of Directors September 8, 2007 ACHIEVING PROFITABILITY IN CLEVELAND (Plus a Quick Look at Maine, Beijing and Cedar Rapids)

2. HOW WE STARTED • Purchase June 30, 2001 • Secure Hill / Gain CWP • Yoder, Krasny-Kaplan, Mentor

3. General Manager’s Primary Accountability per John E. Reed • Responsibility for invested funds • Satisfactory return each year • Break even point less than 80%

4. FINANCIAL STATEMENT HISTORY

5. EARLY CHALLENGES • Machine Tool Recession 2002-3 • Absorbed Dahlstrom / B&K 2002-3 • Krasny Kaplan Machines dropped 2004 • Closed Pipe Mill business 2004 • Key Engineering and Manufacturing Retirements • Manufactured Vulcans for Lockformer 2005-7 • Mentor unprofitable – sold 2006

6. CURRENT ISSUES • Still recovering from loss of key personnel in sales and service • Still working through challenging and problem jobs – all departments equally at fault • Still working through lagging product development • Factory re-organization at early stage • Way behind booking and shipping targets • Costs still uncompetitive • Engineering needs more experience

7. FINANCIALS(7 months)

8. BY PRODUCT LINENet Sales (omitting Vulcan and Service)

9. BY PRODUCT LINEGP %

10. PROFITABILITY PLAN • Product Strategy • Sales/Marketing Strategy • Execution Strategy

11. PROFITABILITY PLANPRODUCT STRATEGY • Offer full range of roll forming products in pre-cut and post-cut, multiple profiles on adjustable frames, range of material specifications, notching/punching/cut off capabilities • Yoder • B & K • Hill • Lockformer Custom • WinPro

12. PROFITABILITY PLANPRODUCT STRATEGY • Good mix of stand-alone/systems; custom/standard; repeat profile/new profile • Solution focus for customers • Excellent parts and service

13. PARTS • Success • Added TISHKEN • R. Schaffer technical expertise in Service • Lowered costs through Formtek Beijing • Challenges • Lost B. Hastings • Replacement leader failed • Too much inventory • Not enough promotion

14. PARTS 2007 • New leader who is customer-centric • Electronic library of reference materials • Telephone lead generation • Web-site promotion • Link more to service

15. YODER • Success • Refrigeration tube, welding wire, closed shapes, custom roll formers, stand alone mills • With Hill systems • Challenges • Full systems profitability • Keeping market share on stand alone mills • Losing rafted jobs • Lost D. Muchnicki and D. Krosky in sales

16. YODER 2007 • Focus on stand alone machines, roll tooling, replacement stands and parts • Limit number of systems, tube mills and custom • Use Managing Performance process to price at higher margins • Develop quick disconnect and universal arrangement for “rafting”

17. B & K • Success • 2 DWR and control • 2 DWR Plus • 3 TSR • Challenges • Structural 12 gage punching • Bundling and control • Accessory line • Door line • Versamill

18. 2DWR Supermill

19. Versamill

20. B & K 2007 • Finish development carefully with a veiw to costs, start up and reliability • Focus on supermill sales while de-emphasizing related products • International Sales – CE version • ROI Selling

21. HILL • Success • P. Williams facilitates sales cooperation and brings $2.0-$3.0 million/year of Yoder and WinPro sales • Challenges • No progress in moving people to Cleveland • Costs too high

22. HILL 2007 • Plan to downsize or sell Hill to focus on high-end roll forming tools for punch, notch and cut-off • Continue to sell rotary punching technology • Use of EAE Turkey and India sources for standard tools • Continue to look for Cleveland-based people with tooling skills

23. LOCKFORMER • Success • Triplex in 6” and 8” designed • Chassis from Formtek Beijing • Challenges • Lack of pre-cut application engineering talent • Lack of sales concepting talent • Costs too high • Competition is diffuse, but strong

24. LOCKFORMER 2007 • Use R. Heilman for concepting • Re-develop dealers in the U.S. • Purchase base units for triplex, duplex and double-extended shaft models from EAE Turkey • Consider line integration in Maine

25. WINPRO • Success • SFM: Crystal Achievement Award • MRP Downloads - Fenevision • Screen express control • Stiffener machine • Challenges • SFM Profiles / controls • Screen Express Vertical • Residential real estate • Controls engineers

26. Screen Express

27. SFM Roll Former

28. WINPRO 2007 • Be selective on SFM – develop standard screen frame to sell to small producers • Stop Vertical screen frame development • Delay sales force and service expansion until 2008-9 buying season • ARX-SYS Development

29. ARX-SYS SPACER SYSTEM

30. System Overview • Drops into existing CED Intercept line – 285 units in the field • Structural spacer system with four continuous corners and enhanced rigidity • Employs a state of the art absorbent technology used in the medical and pharmaceutical industries produced by CSP Technologies called the DesiKey.

31. Corner Assembly

32. DesiKey Spacer Bottom View Chamfered Edges for Easy Insertion Connector Plug Latch (A Raised Feature on the Connector)

33. Muntin Assembly Latch Alignment Features

34. CSP’s Activ-PolymerTMA three component blend • A majority polymer (e.g. PP, PE, …) – the base component -- provides structure • A particle (e.g. absorbing agent) • A minority polymer that is immiscible (like mixing oil and water) in the majority polymer and has a chemical attraction for the particle • Channels composed of the minority polymer and the particle resides in the channels

35. Production Advantage • Integrates into existing production • Less heat – quicker cool-down and throughput • Greater rigidity – easy of handling • Reduction of labor and cost of rivet • Roll-Former capacity of 4200 units per shift (based on 36” x 24” IG, 7 hour shift at 100 FPM)

36. Quality Advantage • No 4th corner – 4 continuous corners • Elimination of the screw/rivet • Better seal with key plug • No sagging of Matrix bead/unaffected by UV or southern exposure • Greater rigidity of spacer • Aesthetics

37. Cost Advantage • Elimination of PPG royalty payment • Reduction of energy costs • Elimination of maintenance and parts of Matrix extruder / alternative use • Consistent cost accounting by unit -Intercept does not apply the same bead size • Reduced Muntin clip costs (no royalty)

38. Savings Analysis Assumptions • 1600 IGUs/shift, 250 work days, 2 shifts/day • PPG Royalty at $.03 / ft. • Matrix costs at $.03 / ft – DesiKey at $.25 each • Average unit size of 24” x 36” • Electricity costs of $45 / matrix pump / shift • 60% of IGUs have grids • Muntin clip cost of $.027 each (ArxSys at $.024) • The ArxSys Spacer incorporates 20% more metal • 15/32 Spacer Intercept Strip Width of 1.30” vs. 1.56” for ArxSys at $52/cwt (Intercept $.025/ft)

39. Savings Analysis ArxSys Price $380,000 - $420,000

40. PROFITABILITY PLANSALES/MARKETING • Regionalize Sales in North America • Improve Contract Management • Improve Price Quotation Accuracy • Tap the power of SalesForce.com • Focus on profitable growth in Yoder, B&K and parts • Sell what is in stock and engineered

41. Regional Sales • Hired E. Martin to replace key losses • Created six (6) U.S. Regions • Kick off with sales meeting – April 2007 • Focus two sales engineers on proposals

42. ROLLFORMING CUSTOMERS PER STATE (47) (33) (37) (68) (32) (43) (25) (18) (21) (19) 5 to 9 (31) 4 to 5 18 to 68 1 to 4 0 9 to 18

43. DAN RINEHART JARED SHEETS OPEN TOM FOX DAVE VOTH JACK PENNUTO JR. TBA

44. Regional Sales • “Stirring the pot” with telephone, web-site pop-ups, flash faxes, mailing campaigns • Training in all product lines • Manage sales activities and behaviors in Salesforce.com

45. Improve Contract Management • Hired Chris Shea with 20 years experience • Created standard formats and language online • Trained general managers and controllers • Trained sales people • Key for Cleveland – 12-15 negotiated contracts per year • All proposals include sales covenants, product specifications, standard terms and conditions and, if required, forms of letters of credit

46. Improve Price Quotation Accuracy • Focus only 2 people on proposals and triage • Examining costing system resources • Examining product templates by product line to building a quotation • Consider re-instating position of “estimator” • Reviewing cost build-up methods, rates, calculations, forms and team-based process • Instituted a “math” review

47. Tap the Power of Salesforce.com • All sales people trained and using to record sales meetings, proposals and information • Low, medium, high odds attached to pipeline • Campaigns developed for shows and promotion • Managers have standardized reports on sales calls, quote tracking and opportunity development

48. Focus • Profit resides in Yoder stand alone, B&K supermills and all parts – focus here • Triage sales response and calls to these priorities

49. Sell Stock / Light Engineering • In stock sales targets reviewed weekly • Orders with less engineering are given priority • Price new profiles to cover risk and quote extra tooling as T & M • Use on-line auction for slow-moving

50. PROFITABILITY PLANEXECUTION • First Class Roll Tooling • One Building / One System • Measurement Tools • Managing Performance • Best Practices Improvement