Status of The Car Wash Market Ryko 2000 Summer Survey I. THE SURVEY WAS SENT TO ALL RYKO DISTRIBUTORS, DIRECT AREA MANAGERS AND REGIONAL MANAGERS IN MAY OF THIS YEAR. DUE TO POPULAR DEMANDS BY SOME OF YOU WE MAILED THEM THIS YEAR INSTEAD OF CALLING YOU. SOME OF WE STILL HAD TO CALL HOWEVER. II. RESPONSE WAS NEARLY 100% THERE WAS ONE AREA THAT DID NOT RESPOND. III. THIS WAS THE SECOND YEAR OF THE SURVEY. IF YOU REMEMBER WE ALSO DID THIS LAST YEAR. IV. THE PUPPIES OF THE SURVEY IS TO GET AN OVERALL FEEL OF THE CAR WASH MARKET FROM YOUR PERSPECTIVE. YOU PEOPLE LIVE IN THE FIELD WITH THIS BUSINESS AND KNOW BETTER THAN ANYBODY ELSE WHAT IS GOING ON IN YOUR AREA. WHEN WE COMBINE THE OPTIONS OF ALL OF YOU IN THIS SURVEY IT GIVES A PRETTY GOOD PICTURE OF WHAT THE STATUS OF THE CAR WASH MARKETPLACE IS. V. IT IS APPARENT FROM WHAT YOU WILL SEE IN THESE SLIDES THAT ALL OF YOU ARE OPTIMISTIC . VI. WE WILL HAND OUT HANDOUT OF ALL OF THE SLIDES. SO DON’T WORRY ABOUT TAKING NOTES.

The Car Wash Market is UP ! For the Fifth Year in a Row the Overwhelming Majority Say the Car Wash Market Is UP !

Menu Prices Are Up ! Menu Prices Have Been on the Rise for Five Years !

Monthly Revenue By Wash Type I. HERE YOU CAN SEE AVERAGE MONTHLY REVENUE IS UP BY ALL WASH TYPES. II. THE CONVEYOR REMAINS THE UNDISPUTED CHAMPION OF MONTHLY REVENUE. III. TOUCH FREE HAD THE HIGHEST GAIN FROM LAST YEAR. IF YOU REMEMBER A YEAR AGO TOUCH FREE AND FRICTION WERE NEARLY IDENTICAL. THIS YEAR TOUCH FREE IS PULLING AHEAD. BUT AS YOU’LL SEE WE ARE STILL WASHING MORE CARS IN FRICTION MACHINES. THE DIFFERENCE IS THE PRICE BEING CHARGED FOR THE WASH. IV. ALL OF THESE NUMBERS ARE VERY EXCITING THOUGH AS YOU CAN SEE, CAR WASH REVENUE IS SIGNIFICANT! ALL OF THESE WASH TYPES ARE CLEARLY VIABLE. ALL SHOW HIGHER REVENUE THIS YEAR THAN LAST.

Monthly Wash Counts By Wash Type I. AS YOU CAN SEE HERE ONCE AGAIN THE CONVEYOR IS HIGH WASH COUNT KING FOLLOWED BY BOTH FRICTION FREESTANDING DRYER AND THEN ON BOARD DRY AND THEN BOTH CONFIGURATIONS OF TOUCH FREE. II. AS WE TALKED ABOUT A MINUTE AGO, WE ARE WASHING MORE CARS WITH FRICTION BUT BECAUSE OF THE HIGHER MENU PRICES ON TOUCHFREE REVENUES ARE HIGHER THAN FRICTION ROLLOVERS. III. THERE IS OPPORTUNITY HERE TO RAISE REVENUES ON ALL PRODUCTS BY RAISING MENU PRICES. IV. CAN SEE SOME ALL WASH TYPES HAD SIGNIFICANT GAINS IN WASH COUNTS REPORTED. AS THESE COUNTS CONTINUE TO GET HIGHER WE WILL SEE EVEN MORE OF A TEND TOWARDS OPERATORS WANTING FASTER HIGHER PRODUCTION MACHINES.

Average Car Wash Menu Prices Touch Free Best Better Monarch II US 2001 Conveyor $2.94 Good $3.20 Good $3.87 Good $3.96 Better $4.13 Better $5.03 Better $4.97 Best $5.22 Best $6.18 Best Voyager SoftGloss XS $2.65 Good $3.26 Good $3.62 Better $4.35 Better $4.00 Best $5.50 Best Good

Average Car Wash Menu Prices SGXS Best Better Good

Average Car Wash Menu Prices Conveyor and Select-A-Wash

Things Car Wash Operators Are Doing to Improve….. Advertising -19 Adding options –10 Emp. Incentive-7 Car wash clubs – 7 Raising prices – 6 Upgrading Eq. - 5 Promotions – 4 Tri-foam - 1 Training – 1 New menus – 1 Chemicals –1 Better Maint. - 1

Car Wash Operators Biggest Concerns Competition – 5 Reliability – 5 Wash quality - 4 Chemicals – 3 Cost of op. – 2 Marketing support -1 Cost – 9 Service - 9 Damage – 8 Downtime - 7 Maint. Cost – 6

At What Level Of Gasoline Volume Do You Recommend…. Gallons Per Month

What Is the Average “Cents” Per Wash by Equipment Type?

...Expect a 10% Increase When Adding Pay At The Pump Average response was 10% increase for 1999 Of car wash sites have pay at the pump 1997 - 47% 1998 - 58% 1999 - 75% 2000 – 83% RYKO 1997 Summer Survey

Do Long Lines Affect Revenue? Five Years in a Row Lines Effect Revenue

Charge For Wash Market? In 2000 95% Charge For The Wash

Are Operators Looking For Greater Speed?

Are Industry Sales Increasing? 17% UP RYKO 1997 Summer Survey

Are Equipment Prices Increasing? YES EQUIPMENT PRICES ARE ON THE RISE !

Are The Number of Sites Increasing? 82% say the number of car wash sites are increasing

Is Competition Getting Stronger? 60% say that competition is stronger 60%

RYKO 2000 Summer Sales Meeting Thank You! RYKO 2000 Summer Sales Meeting