MRO Image Utility Knives and Blades 2010 Program and New Products Version

Agenda » Market Size » Category Overview » Consumer Insights » Product Innovation » Commercialization

Market Size

Hardware/Home Centers are the preferred destination Key Users Dry wall Carpenters Roofers DIY Purchase driven by Ease of shopping Right Product for application Value Offering Everyday Pricing THD Lowe’s Other IC Hardware 30% 10% 17% 24% 19% N.A. Retail $280MM Channel Overview: North America Key Takeaways

Stanley Other Kobalt Husky IRWIN 52% 10% 4% 5% 29% N.A. Retail $280MM Stanley is the market leader New Products New Brand positioning (Bostitch, FatMax, Extreme) House brands growing at THD and Lowe’s Folding Knives Specialty and Snap Knives Many different players through private label Brand Share: North America IRWIN is the newest and fastest growing brand Key Takeaways

Category Overview

Initial Offering

Current Offering

Main Benefits of Bi-Metal Blades » Holds Sharp Edge 3X Longer* » Shatter Proof » Unbreakable IRWIN Innovation Bi-Metal blades virtually eliminate injuries from flying chards of steel. Since the last 3X longer, Associates change blades much less, which reduces their risk of getting cut. *versus carbon

Consumer Insights

Drywallers: » Choke up on “nose” » Measure and cut quickly » Drywall dust ruins tools » Cuts blades for fresh tips Roofers: » Tool security » Loose pieces get thrown away » Temperature effects the materials being cut Contractors: » Durable Design » Quick easy blade change » Secure internal parts Target End Users

Key Needs1) Durability 2) Easy access 3) Ergonomics 4) Narrow Profile 5) Blade Storage 1) Ergonomics 2) Blade Storage 3) Durability 1) Ergonomics 2) Blade Storage 3) Durability 4) Compact 5) Easy Access 1) Ergonomics 2) Blade Storage 3) Durability 4) Safety Purchase Drivers 1) Application 2) Product Performance 3) Price 1) Application 2) Product Performance 3) Price 1) Application 2) Product Performance 3) Price 1) Safety 2) Blade Storage 3) Ergonomics Knife Selection Drywaller 36% of Market Roofer 20% of Market General Contractor 20% of Market MRO 14% of Market End User Profiles

Product Innovation: 4-Point ™ Utility Knife Blades

1) Product Performance 2) Precision 3) Price 4) Pack Size (Bulk) 1) Tip Sharpness 2) Durability 3) Life Purchase Drivers Key Needs Sharpening or cutting their blades for new tips Give the user what they want! Drywallers are 36% of the market User Observations TodayTomorrow

4-Point ™ Innovation MEETS TOP 3 UTILITY BLADE USER NEEDS: (1) Tip Sharpness, (2) Durability, (3) Life » 4 Points in one blade Doubles the Life of the Blade » Convenience of a snap blade, rigidity of a trap blade » Bi-Metal and Carbon available » 4 notches to maintain blade length Advantages

Product Innovation: Utility Knife Handles

Consumer Insight on Utility Knives » Choke up on knife “nose” » Holds tape measure end-hook against blade to quickly measure and cut » Drywall dust gets in everything and will “cake up” in tools Handle Innovation Drywallers

Consumer Insight on Utility Knives » Tool Security: need to change blades quickly and without opening knife »Knives that have loose pieces get lost and thrown away »Temperature effects the materials being cut: pulling hard on knife in cold weather Handle Innovation Roofers

Consumer Insight on Utility Knives » Durable Design: “Gets the Job Done” »Easy Blade Access: For quick blade changes »Secure Parts: To prevent dropping/losing components »Removable Blade Housing: For cleaning debris after use Handle Innovation Contractors

Consumer Insight on Carpet Knives » Angled Handle: Keeps hands above the material »Blade Rigidity: To ensure straight cuts in flooring material »Tool-Free Access: Quick and Easy blade changes »Blade storage inside the handle Handle Innovation Flooring Specialists

Consumer Insight on Linoleum Knives » Hooked Blade: For cutting on the pull »Durable Blade: Users want the ability to re-sharpen »Durable Handle: Resistant against drops and jobsite conditions Handle Innovation Flooring Specialists

Consumer Insight on Folding Knives » Compact Design: Fits into the pocket »Durable Design: Holds up to jobsite conditions »Quick Change Design: Change blades quickly »Belt Clip: Clip onto pocket or belt for easy access Folding Knife Handle General Contractor

Consumer Insight on Safety Knives » Self-Retracting: To prevent puncturing »Ergonomic Design: Reduces Hand Fatigue »Tool-Free Access: Quick and Easy blade changes Safety Knife Handle MRO

Handle Program is Customized for Unique End User Needs Final Packaging Concepts

Best-in-Class Packaging Clearly Communicates Benefit Final Packaging Concepts

Set Up Information

2010 Full Category Offering All New Products Available by October 15 th

Commercialization

2010 Integrated Marketing Plan End User Engagement Event MarketingSports MarketingSkillsUSA Heavy seeding and targeted advertising initiatives