Contents About KCI Chemical Company

Contents • About KCI Chemical Company • • • KCI 80 Degree Cleaning and Phosphatizing • • • Lab Capabilities Lab Testing KCI Versus • • • Control Equipment Process Controls KCI Support • • • Why Choose KCI 80 Degree System Advantages Disadvantages Technology Customers/Photos KCI Automation • • • Mission Statement Who is KCI Approach Industries Served KCI vs. Competition Only Showing In Town Packaging Customers Thank You

Our Mission Supplying the highest quality ambient temperature products in the powder-coating industry that will reduce high energy costs while maintaining quality standards. This can be achieved through our customers by: • Reducing Operating and ENERGY Costs • Maintaining or Increasing Quality • Achieving their environmental objectives

Who is KCI Chemical Company Leader in Room Temperature Cleaning and Phosphatizing. Reducing Energy Costs at a Minimum of $36, 000 to $75, 000 Annually. Founded in 1969. Serving the United States Market. ISO 9000 Compliant. SPC Charting and Troubleshooting QA Certificates of Analysis American Owned and Operated. Proactive and Responsive Company. Dedicated to Custom Formulating. Manufacture Our Own Products Blending and Warehousing Focused on Environmental Preservation R & D Environmentally Directed

Exceptional Service…. Ø KCI Chemical Company provides a unique, innovative Ø Ø approach to solving customers problems --- ownership of our accounts. Total system, engineering approach with increased service visits. Daily service and technical support during system start-ups. Dedicated service by a technically degreed service rep utilizing computer generated reports. KCI Chemical Company takes a proactive approach designed to identify and correct potential problems before they occur.

Quality…. Ø Unparalleled chemical technology for cleaning and Ø Ø phosphatizing. 5% of sales revenue is invested back into R & D to ensure KCI remains on the cutting edge of new technology. Automation provides consistent bath chemistry 100% of the time for improved results. Regular Business Review Meetings to ensure quality and consistency is maintained. Guaranteed system performance.

Automation and Control Ø Prevents overfeed and underfeed conditions, improving line operations while minimizing cost. Ø Typically reduces usage by 5 -15%. Ø KCI Chemical Company control package included in the program. ($10, 000 in capital for standard application) Ø Improves plant safety by minimizing operator exposure to chemicals.

Training…. Ø Conduct ON-SIGHT formalized training program. Ø Plant specific, hands-on training…customized to customers needs. Ø Annual regional pretreatment seminars.

Industries Served n n n Appliance Automotive Display Drum Electronic Components n n n Job Shops Metal Finishing Truck Components Utility Trailers Utility Trucks

Why Choose KCI u u u KCI has over 6 years experience with 80 degree cleaning technology. R&D improvements in detergent organic chemistry over the past three years. Environment friendly using organics which are non-pollutants. Chlorate phosphates cannot contain cleaners. Both phosphates with a non-chrome seal can achieve 1, 000 to 1, 500 salt spray hours. Over 17 customers with various operations are currently using the 80 degree system and saving thousands of dollars without forfeiting quality.

ADVANTAGES ð ð ð Decrease in ENERGY Consumption. Natural Gas Savings can be in EXCESS of $70, 000. 00 annually. Production can start almost immediately. Two stages of cleaning versus one. System attacks lubricants that react better to alkaline or acid cleaners. ð Less time cleaning tanks and nozzles with organic versus chlorate or molly-phosphate.

DISADVANTAGES ð Additives may be needed to enhance cleaning. ð Defoamers may be needed. ð May need to increase temperature under special circumstances.

Previous System 5 Stage Low Temperature Pre-Treat System u Stage #1 - Alkaline Cleaner Concentration of 2% to 3%. u Temperature of 120 F. u u u Stage #2 - Monitored Stage #3 - Chlorate Accelerated Iron Phosphate. Concentration of 2 to 3%. u Temperature of 120 F. u u u Stage #4 Monitored Stage #5 Non Chrome Seal. u Concentration of 0. 5 to 1. 0%.

New Technology 5 Stage 80 Degree Pre-Treatment System u Stage #1 - Alkaline Cleaner u u Stage #2 - Monitored Stage #3 - Detergent Organic Iron Phosphate u u Concentration of 1. 5 to 2%. Temperature of 80 degrees. Stage #4 - Monitored Stage #5 - Non-chrome seal u Concentration of 0. 5 to 1. 0%.

Product Proposal 5 Stage Washer 1. 2. 3. 4. 5. Stage 1 - Spray Klene 5162 Stage 2 - Rinse Stage 3 - Liqua Phos 6906 Stage 4 - Rinse Stage 5 - Phos Rinse XL (Alkaline Cleaner) (Fresh Water) (Iron Phosphate) (Fresh Water) (Non-Chrome Seal)

Technical Recommendations Spray Clean Spray Klene 5162 80 degrees F Stage 1 Controller LMI Pump Iron Phos Liqua Phos 6906 80 degrees F Stage 2 Stage 3 Non-Chrome Seal Phos Rinse XL Stage 4 Controller LMI Pump Automated Chemical Feed System Stage 5 Controller LMI Pump

Control Equipment Electronic Controllers Stage 1 – Conductivity Stage 2 - TDS Meter Stage 3 – Conductivity Stage 4 - TDS Meter Stage 5 - p. H Controller Conductivity, TDS and Ph Metering Systems u u u Foxboro GLI Endress + Hauser Chemtrol Myron L

Process Control Equipment Signal Feedback To Controller Chemical Pump Chemical Feed Into Bath When chemical concentration is below setpoint: - Controller signals pump to add chemical. - Based on Time-Proportional-Control (TPC) • Improves bath consistency. • Less Chemical Waste Chemical Feed Into Pump Probe Pretreatment Bath

Stage 1 KCI Versus Competition KCI u KCI recommends a maximum of 80 degrees for cleaning. u KCI recommends 1. 5% to 2% by volume. u Operating at 80 degrees with KCI Cleaner you get a nice blanket of foam. (Most operators like to see some foam because they know they have cleaner in the tank. ) Competitors n Recommendations of 125 to 140 degree cleaning n Concentration of 2% to 3% by volume. n Foam issues occur with competitors when used at temperatures below 115 degrees.

Stage 3 KCI Versus Competition KCI u KCI organic phosphate must be maintained at 2. 0% to 2. 5% by volume. u KCI phosphate must be maintained at a p. H of 4. 3 to 5. 5. u KCI phosphate is already preadjusted so no more consumption of phosphate is necessary with new Liqua Phos 6906. u KCI phosphate must be maintained at 80 degrees. u KCI phosphate must be maintained at 1. 5% to 2%. Competitors n Recommended concentration of chlorate iron phosphate at 2. 5% to 3. 5% by volume. n Competition phosphate must be maintained at a p. H of 4. 5 to 5. 2. n Competition phosphate p. H has to be adjusted. (If too much p. H adjustment is added to tank it can affect quality of product. ) n Competition chlorate phosphate must be maintained at 90 to 140 degrees. Competitions product must maintain concentrations of 2% to 4%.

KCI Is The Only Show In Town KCI is the only company that has proved to be successful with cleaning and phosphatizing at 80 degrees. Other chemical companies are still utilizing 30 year old technology and few are able to formulate a successful low temperature cleaning and phosphatizing system. Many companies are trying to formulate products that clean and phosphate at under 100 degrees, but can not compete with KCI’s 80 degree clean and phosphate system. Some companies are trying to increase their concentrations dramatically in effort to lower the temperature, while KCI is the only company able to not only reduce the operating temperature, but also lower the concentration of the tank. With the rise in the cost of Natural Gas there will be no choice but to find an alternative solution in replacing the chemical products of yesterday. Now is the time to see how other companies have saved in excess of $70, 000. 00 annually on operating costs by switching to KCI’s 80 degree technology. In addition to the energy savings, KCI will be able to save dollars on chemical costs due to being able to operate at lower concentrations. I know it sounds too good to be true, but feel free to contact any of our customers. We are that confident!

Support Ø Ø Ø Technical Support Team Electronic Controllers Metering / Mixing Titration Supplies Washer Booklet

Quality Control and R&D Lab

Lab Analytical Capabilities ü ü Spectrophotometer ü Atomic Absorption (SCL) ü Fourier Transform Infrared Scanning Electron Microscope (SCL) Portaspec X-Ray Spectroscopy Analyzer (SCL) 3 Precision Portable Production Washer Simulators

Laboratory Testing Available u u u u Salt Spray (B-117) Humidity (D-2247 -68 Cross Hatch (D-3359 -74) MEK Rub Coating Weights Film Thickness (D-1186 -53) Pencil Hardness (D-3363 -74) Impact (D-3281 -73 u Direct or Reverse u u u u Filiform Corrosion Cast Iron Chip Surface Analysis Specific Ion Analysis Water Analysis Conductivity Compatibility Metal Analysis Suspended or Dissolved Solids Oil Loading p. H Microbiological Lubrication

Additional Equipment Accelerated Environmental Testing Monthly salt spray testing is available at KCI’s lab in Mc. Henry, Illinois Portable Simulators

Packaging Bulk Storage Tanks 330 gallon totes (returnable) 275 gallon totes (returnable) 55 gallon drums (returnable) 5 gallon pails

Customers ¯ ¯ ¯ ¯ ¯ Chicago Steel Container Core Finishing/Tech Finishers Dean Weld & Fab Gleason Industrial Products IA & L Coaters K-Display Milton Enterprises Quam Nichols RC Industries ¯ ¯ ¯ ¯ Shelf Kote Shidaker Manufacturing Sorini Ring Steel King Trend Technologies US Cargo/Plant 1 US Cargo/Plant 2 World Metal Finishing

PHOTOS (Current Customers)

Partnership Support Team u u u Jim Konzen - Senior Account Manager Rod Tofte - Senior Account Manager David Baughman - Senior Account Manager John Affinito - Technical Director Stacey Holman - Quality Control Al Woods - Plant Manager