Utility Knives and Blades 2010 Program and New Products Utility Knives & Blades 4-Point™ Snap Blades & New Handles Utility Knives and Blades 2010 Program and New Products

Current Offering (Trap) Agenda Category Overview Consumer Insights Product Innovation Current Offering (Trap)

Category Overview

N.A. Channel Overview N.A. Retail $280MM Key Takeaways THD Lowe’s Other I/C Hardware 30% 10% 17% 24% 19% Home Centers and Hardware Store are the preferred convenience destinations Key Users Drywallers (#1 consumer of UKBs) Carpenters Roofers DIYs Purchase Driven by: Ease of shopping Right product for application Value offering Everyday pricing

N.A. Market Share (by brand) Key Takeaways Stanley is the Market Leader Created the UK&B Trusted name Wide array of brands Bostitch, FatMax, FM Extreme, and DeWalt No one has truly innovated the carbon blade, still the #1 type of blade used globally (i.e. giving consumers what they want ) House Brands Growing Folding knives (2nd most popular knife handle) Snap & Specialty knives Many Different Private Label Players IRWIN first offered UKB products in 2004 Stanley Other/Private Label Kobalt Husky IRWIN 52% 10% 4% 5% 29% N.A. Market Share (by brand) IRWIN is the newest and fastest growing brand

Initial Offering 2004 2005 2007

Old UKB Offering

(5) New Knives & (5) New Blade Skus – Available Now New UKB Offering (5) New Knives & (5) New Blade Skus – Available Now

Consumer Insights

What we thought we knew about the drywaller… End User Profiles & User Assumptions Drywaller 36% of Market Roofer 20% of Market General Contractor 20% of Market MRO 14% of Market Key Needs Durability Easy access Ergonomics Narrow Profile Blade Storage 1) Ergonomics 2) Blade Storage 3) Durability Compact Easy Access Safety Purchase Drivers Application Product Performance Price 1) Application 2) Product Performance 3) Price Knife Selection What we thought we knew about the drywaller…

Target End Users Drywallers: Roofers: Contractors: Choke up on “nose” Measure and cut quickly Drywall dust ruins tools Cuts blades for fresh tips Roofers: Tool security important Loose pieces get thrown away Temperature effects the materials being cut Contractors: Durable Design Quick easy blade change Secure internal parts Drywaller Primarily using Trap blades and Fixed Handles Using between 5 – 10 blades per day Dried-in structure Protected from elements, but not heat or cold Drywall is very dusty and dirty Roofer Primarily using Hook Blades and Mid-high end retractable Knives Using 3 – 5 blades per day, depending on the material Working at high elevations Often constrained by safety equipment Outside in all conditions – weather has tremendous impact on ease of cutting materials

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

Product Innovation: 4-Point™ Snap Blades

4-Point™ Snap Blade Innovation Advantages of 4-Point™ 4 Points in (1) blade Doubles the Life of the Blade Convenience of a snap blade, rigidity of a trap blade 4 notches for greater depth of cut and/or to maintain blade length Available in 5, 10, 50, and 100 packs * versus traditional IRWIN carbon blades MEETS TOP 3 UTILITY BLADE USER NEEDS: (1) Tip Sharpness, (2) Durability, (3) Life

New Utility Knife Handles Product Innovation: New Utility Knife Handles

Consumer Insight on Utility Knives Drywall Fixed Knife Consumer Insight on Utility Knives Slim Nose: Allows for greater control & ease of use when using tape measure Tool-free Blade Access: For easy blade changes Tight Seam Design: Prevents drywall dust from “caking up” knife Drywallers

ProTouch™ Retractable Knife Consumer Insight on Utility Knives Quick Change Feature: Allows for quick blade changes Extra Blade Storage: Holds up to (10) blades Tool Security: Change blades without opening knife, losing pieces Trigger Grip Design: Easier for cutting on the pull Roofers

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

Consumer Insight on Carpet Knives Carpet Knife 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 Flooring Specialists

Consumer Insight on Linoleum Knives Linoleum Knife 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 Flooring Specialists

Consumer Insight on Folding Knives Folding Utility Knife Consumer Insight on Folding Knives Compact Design: Fits into the pocket Durable Design: Holds up to jobsite conditions Quick Change Design: Change blades quickly @ 45º Belt Clip: Clip onto pocket or belt for easy access General Contractor

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

Current UKB Offering Current UKB Offering

20011: (5) New Knives & (5) New Blade Skus – All Shipping Now Full Line UKB Offering 20011: (5) New Knives & (5) New Blade Skus – All Shipping Now

New IRWIN Utility Knife Blade Lineup

New IRWIN Utility Blade Lineup 4-Point Snap Blade NEW Bi-Metal Utility Blade Hook Blade (Roofing) 18mm Bi-Metal Snap Blade Carbon Utility Blade Carpet Blade (Carpet & Flooring) NEW 18mm Carbon Snap Blade Safety Utility Blade 9mm Carbon Snap Blade

Bi-Metal Blade Innovation Edge Stays Sharper 3X Longer* Shatter-Proof, Safer to Use Best Heavy Duty Blade Available Incredible Value Proposition Main Benefits of Bi-Metal Blades * versus traditional IRWIN carbon blades “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.“ -Kurt Smallwood, Safety Manager

New IRWIN Utility Knife Handle Lineup

Construction Handles & Blade Pairings General Use Construction Handles 4-Point Snap Blade Bi-Metal Utility Blade NEW New Blade/Handle Combinations (Rolling Changes)

Specialty Handles & Blade Pairings Drywall Flooring Handles Carpet Blade (Carpet & Flooring) NEW Safety Utility Blade Flooring Tools are New to Our UKB Handle Offering

Set Up Information Setup Information (CDN) Item # MASTER DIMENSIONS   MASTER DIMENSIONS CARTON DIMENSIONS Item # DESCRIPTION UPC LBS CUBE LGTH WDTH HT MSTR QTY CTN QTY February 15, 2010 CDN LIST PRICE IRWIN Utility Knives and Blades IRWIN 4 point Utility Blades 1782106 DRYWALL UTILITY KNIFE W/ 4PT BLADE 0 3854 899306 5 8.65625 0.41707 20.5 9.375 3.75 25 1.53125 0.076968 9.5 4 3.5 5 $15.44 1782107 GENERAL CONTRACTOR KNIFE W/ BIMETAL 0 38548 99307 2 10.375 0.61171 5.5 1.875 0.098958 4.5 $17.08 1782108 PRO TOUCH RETRACTABLE W/ 4PT BIMETAL 0 38548 99308 9 9.4375 1.6875 $19.11 1782109 CARPET KNIFE W/ CARPET BLADES 0 38548 99309 6 9.90625 1.78125 $13.22 1782110 LINOLEUM KNIFE 0 38548 99310 2 21 0.72569 11 12 0.079753 10.5 $6.65 1782111 CARPET BLADES 5 PACK 0 38548 99311 9 2.93125 0.0329 4.125 2.25 6.125 0.48625 0.005141 2 0.756 5.875 $3.32 1782112 4 point Carbon Blades 5PK 0 38548 99312 6 0.168 0.061 6.500 2.500 0.150 0.002 2.000 1.375 6.750 $2.16 1782113 4 point Carbon Blades 10PK 0 38548 99313 3 0.304 0.127 11.563 2.813 0.300 $4.32 1782114 4 point Carbon Blades 50PK 0 38548 99314 0 0.750 0.021 13.250 7.750 1.750 0.700 0.019 1.250 3.625 7.250 1 $19.61 1782115 4 point Carbon Blades 100PK 0 38548 99315 7 1.050 1.000 $25.90

Continuous New Product Innovation New UKB Offering Continuous New Product Innovation