CADWELD PLUS Redesign Outline

Goal Part 1: Redesign CADWELD PLUS that will have all the benefits of the PLUS at the quality of traditional or better. Repeatable quality welds Mild and controlled reaction Part 2: Optimize product and process that will yield savings. Mold Standardization for manufacturability Redesign molds to use less graphite

CADWELD PLUS Pie Mold Weld Metal Cup Weld Metal Flow Slag Separation Gas Interaction Heat Flow Fit-up with Cable/Rail Graphite Reaction Containment Weld Metal Contamination Cupric/Cuprous Ratio Controlling Raw Materials Mixing/Separation Formulation Particle Size Purity Cup Heat Transfer Weld Height-to-Width ratio Mold Interaction Graphite Interaction Mylar&Shrink Band Need 2/3 Pies to be optimized to get a good consistent weld every time

CADWELD PLUS Pie Weld Metal Cup Optimized Molds (Phase 1) Need 2/3 Pies to be optimized to get a good consistent weld every time Cup

CADWELD PLUS Pie OPTIMIZED CADWELD® PLUS Optimized Molds (Phase 1) Optimized Cup (Phase 2)

CADWELD PLUS Improvements Plan Brief Phase 1: Molds Mold Optimization and Standardization: Implementation ongoing through 2011 Improve weld quality, reduce graphite, reduce manufacturing time Optimize mold design for best weld performance Use minimum graphite, while achieving best weld performance Redesign for CNC batch manufacturability and update manufacturing process Standardize by size and family & update design standards Molds Improve slag separation Reduce blank size Commonize design within size and family Reduce number of features difficult to machine

CADWELD PLUS Improvements Plan Brief Phase 1: Covers Mold Optimization and Standardization: Implementation ongoing through 2010 Improve weld quality, reduce graphite, reduce manufacturing time Cover Redesign: Reaction intensity becomes milder by about 10-20% More economical to manufacture Easier to clean Improving Weld Quality Improved durability for the mold-hinge-cover system is under the fatigue endurance limit (3”x3” covers were tested 8,000+ cycles)

CADWELD PLUS Improvements Plan Brief Phase 2: Cups Cup Consolidation (detail on later slide) Improve weld quality, reduce graphite, increase manufacturing capacity Optimize cup shape for optimum heat transfer&flow Improve slag separation and weld quality Calm the reaction Reduce CUP machine and RTS setup time Grouping I: 15, 25, and 32 Grouping II: 45 and 65 90 and 115 Grouping III 150 and 200 Grouping IV 250 and 300 400 and 500

CADWELD PLUS Improvements Plan Brief: Other New Mold Cleaning Tools Easy to use and fabricate Easier to use Less expensive to manufacture Expected to result in less “mold lock ups” and improve mold wear slightly Small: Sizes 15, 25, 32, 45, and 65 Medium: Sizes 90, 115, 150, 200 Large: Sizes 250, 300, 400, and 500 Igniter Improvements Improve ignition reliability, reduce scrap, and decrease cost Igniter stickout improvement on 250 and 300 – Completed Phase 1: Pre-punched igniters with large ignition surface: September 2009 Phase 2: Updated igniter station: September 2010

The program starts with Size 15

CADWELD PLUS Improvements Sizes 15 Use 32 size cup with 15 weld metal Redesign molds to have a weld as good or better to traditional in current configuration Production is able to make consolidated 15 CW+ easier than current CW+15 15 25 32 Current Mold New Mold optimized tap hole deeper crucible for new consolidated cup

CADWELD PLUS Improvements Sizes 15 Phase 1 and Phase 2: Mold Redesign and Cup Redesign Size 15: Implementation: New Molds Cleaning Tool: July 2009 Mold production: Starting August 2009 All Weld Metal (F20 and F33) Mold Redesign covers 99.2% of all molds sold 2006-2009 (Testing Covers All) New Cup production: October 2009 Traditional Old Cup New Cup Old Mold Not Compatible (Replace Mold) New Mold

Plan for CADWELD 15, 25, and 32 Size 15: 10/01/2009

FAQ Will we offer something for trade in of old molds? Yes – we can offer the partner a discount towards new molds. We can also offer the customer/partner discounts on all competitor molds they want to send in also. Will the old handles work on the new molds? Molds are identical for handles and clamps Will the new molds cost the same? Costs should go down because of less graphite. Market will expect to see some type of reduction, so we will come up with some list price reduction. What about MTO molds? All molds that have sales between 2006 and 2009 will be changed. Molds outside of that timeframe or MTO will go through the BPM event process to be re-designed. Does the part numbers change? No – this is a running change Does the flyaway program stay the same? Yes What do I do if my customer calls me and says “ the cup is sticking out” ? Verify the condition Offer to replace the mold via flyaway program and discount mold How do I tell if the customer has old or new CWP? The cup size is physically changed and the date code on the box would be post 10/2009.

Questions