AirBoss of America Corp. Infrastructure +Defense+ Heavy-Duty Conveyor Belts + Technology Based Solutions Defense and Industry. AirBoss of America Corp. January, 2011

AirBoss of America Corp. 2 Agenda Overview AirBoss Rubber Compounding AirBoss Engineered Products Management and Personnel Introduction

AirBoss of America Corp. 3 AirBoss of America Corp., develops, manufactures, and sells rubber-based products for military, transportation, and industrial markets in North America and Europe (1)Excludes Railway division which was sold in December 2008 (2)As per consensus analyst estimates AirBoss of America Corp. EBITDA (C$ Millions) (1)

AirBoss of America Corp. 4 Investment Highlights North America’s premier industrial rubber producer 2009 EPS $ EPS $0.55 (analyst estimate) – Nine Month September 30 actual $0.40 Future earnings growth highly levered to filling existing compounding capacity and new defense products High insider ownership (24%) with management focused on enhancing shareholder value Rubber Compounding #1 supplier of rubber compounds to the North American mining and coal industries Second largest rubber compound manufacturer in North America Positioned to take advantage of tire company recovery AirBoss-Defense World leader in the supply of CBRN protective gloves and boots, including sole supplier to US Military Sole supplier of gas masks to Canadian DND 2010 Vermont manufacturing expansion to service increased demand from US military Recently announced $22 million in new contracts Actively seeking strategic acquisition opportunities

AirBoss of America Corp. 5 Agenda Introduction AirBoss Engineered Products Management and Personnel AirBoss Rubber Compounding

AirBoss of America Corp. AirBoss Rubber Compounding - Overview Manufactures over 1,000 different un-vulcanized custom compounds from synthetic or natural rubber for a wide variety of customers in North America Note: 2009 EBITDA was negative due to inventory write-downs Overview

AirBoss of America Corp. Products + Infrastructure Oil & Gas Cable & Wire Heavy-duty Conveyor Belts Mining Tire & Track Industrial Automotive Defense Compounded Rubber: 250 million pounds capacity 1 AirBoss is one of North America's leading custom rubber mixers with the capacity to supply over 250 million pounds annually. We continually invest in our manufacturing. Our main facilities in Ontario and Quebec, are supplemented by a state-of-the-art mixing facility in Scotland Neck, North Carolina. 7

AirBoss of America Corp. 8 AirBoss Rubber Compounding – Market Segments ARC manufacturers over 1,000 different un-vulcanized custom compounds from synthetic or natural rubber, strengthening agents and various additives and chemicals. Formulas are developed by ARC’s chemists and technical staff to meet specific customer requirements. End uses for the rubber compounds include: Conveyor Belting, Mining and Industrial, Solid Tire, Defense, and Auto and Truck Parts.

AirBoss of America Corp. Products Heavy-duty Conveyor Belts Heavy-duty Conveyor Belts 37% 1 AirBoss is the largest compound supplier in North America to the conveyor belt industry. Principal uses are coal and hard rock mining Agricultural a growing segment Other Growth Potential – Oil Sands, South America, tires 9

AirBoss of America Corp. Products Mining 1 Mining and Industrial 23% AirBoss supplies abrasion resistant compounds for mining truck bed liners and ball mill liners Largest independent supplier of off road tire retread compounds 10

AirBoss of America Corp. Products Defense 1 Defense 11% AirBoss supplies rubber compounds to other defense contractors as well as supplying material to repair tank tracks and wheels. 11

AirBoss of America Corp. New Markets Cable & Wire Cable & Wire: 1 Expected Growth over next 24 months Ongoing recovery of North American OEM tire markets New market segments such as wire and cable Gradual recovery of US industrial base 12

AirBoss of America Corp. 13 Leveraging Existing Capacity Currently at 66% ( 3 locations) Moving to 90% in next two years Kitchener - Replacement Cost: US$50 millionScotland Neck - Replacement Cost: US$15 million

AirBoss of America Corp. 14 AirBoss Rubber Compounding- Key Success Factors cont.. Competitive advantages Large capacity, state-of-the-art equipment and high level of automation results in highest quality Maximize efficiency due to larger batch size and shorter production cycles Utilize world-wide purchasing and strong technical staff in the dedicated labs. Ability to source raw materials worldwide Accredited lab for product development

AirBoss of America Corp. 15 Agenda Introduction AirBoss Rubber Compounding Management and Personnel AirBoss Engineered Products

AirBoss of America Corp. 16 AirBoss Engineered Products Overview AirBoss-Defense accounts for over 70% of AirBoss Engineered Products revenue

AirBoss of America Corp. 17 AirBoss-Defense manufactures protective wear for military and first response applications including gas masks, rubber gloves, boots, over-boots for military applications requiring CBRN contaminant protection, extreme cold weather ("ECW") footwear protection for military use and rubber compounds and pre-forms for military tank track repair. CBRN Products include: AirBoss-Defense AirBoss Moulded Glove AirBoss Lightweight Over-boot C-4 Gas Mask

AirBoss of America Corp. 18 Sole supplier of CBRN protective hand wear and foot wear to Canada, US and many NATO countries Sole supplier of gas mask to Canadian DND Also supply ECW products and tank repair products AirBoss Engineered Products; AirBoss-Defense highlights

AirBoss of America Corp. 19 AirBoss Engineered Products; AirBoss-Defense Sales Trend AirBoss-Defense volumes positively impacted by supplanting older, less effective competing technologies

AirBoss of America Corp. Defense R&D Initiative Project Definition: Improve operational effectiveness of soldier New technologiesNew productsServices  CB Air Filtration  Hybrid PPE  Assist with DND workload  Detection/Nano- sensors  Respiratory systems  Test and validation center  Engineered polymers

AirBoss of America Corp. AirBoss-Defense Recent Announcements US order for $15.2 million for CBRN gloves for 2010/2011 US order for $7 million CBRN boots High degree of visibility for 2011 sales Orders already received for 70% of 2011 budget 21

AirBoss of America Corp. President’s Requested Discretionary Program Budget Authority 22

AirBoss of America Corp. 23 AirBoss-Defense key success factors CBRN Protection Technology US Military testing confirms that AirBoss-Defense products offer significantly superior performance Proprietary rubber compounds Commitment to New Product Development – next generation products Injection moulded CBRN boot - cost reductions of between $6 and $8 per pair Escape Gas mask Joint advancement of “sensor” science with Canadian government

AirBoss of America Corp. 24 In addition to new products First Response Acquisitions in US Based Personal Protection Markets Geographical market expansion AirBoss-Defense Growth Opportunities

AirBoss of America Corp. US Market Personal Protection The Personal Protection market (U.S.) should reach over $3.7B in 2010; war- time requirements have pushed spending in defensive measures to record highs (though down slightly from 2008) *Note: AirBoss’s current products are included in the “other” category **Excludes IED detection/defeat (JIEDDO customer) Source: RSAdvisors Analysis FY10 US Defense Personal Protection Market Total = ˜$3.7 B** ($, M) 25

AirBoss of America Corp. Financial Data YE Dec A 2010E¹ 2011E¹ Revenue (mm) $210.0 $237.6 $252.3 EBITDA (mm) $16.3 $27.2 $30.4 EV/EBITDA 9.3x 6.8x6.1x EPS f.d. $0.26 $0.55 $0.65 P/E 20.8x 12.7x 10.8x CFPS $0.42 $0.79 $0.90 P/CF x 7.8x Net debt (cash) $21.7 $ Book Value $2.94$3.40 $3.98 P/BV 2.4x 2.1x 1.8x ¹ Analyst Estimates

AirBoss of America Corp. AirBoss Nine-Month Income Statement Sept Sales$175,767$152,192 EBITDA 19,731 10,859 EPS $0.40 $0.15 LTM EPS $0.51

AirBoss of America Corp. Summary Industry leaders in both business segments Growth expectations in both segments (both top and bottom line) Strong financial position provides strategic acquisition flexibility 28

AirBoss of America Corp. Summary Strong Working Capital 2.45:1 Debt reduced by 2/3 over last 2 years Dividend increased from $0.05 per year to $0.12 per year 9 month EBITDA increase of 82% 29

AirBoss of America Corp. Market Data Close Price - As at January 7, 2011$ week High-low$ $4.85 Shares Outstanding (000s)23,613 Free float %76% Avg. Volume (last 100 days)41,811 TTM EBITDA (000s)$25,184 Net Debt (000s)$17,750 Market Cap (000s)$146,873 Enterprise Value (000s)$164,623 Valuation Trailing LTM EV/EBITDA 6.6x Trailing LTM P/E - Basic12.2x 30

AirBoss of America Corp. 31 Agenda Introduction AirBoss Rubber Compounding AirBoss Engineered Products Management and Personnel

AirBoss of America Corp. 32 Management Gren Schoch, Chairman of the Board Gren Schoch is a professional engineer and ran a successful engineering and geological services company, MPH Consulting, between 1976 and In 1982, he also founded and chaired Petromet Resources, a junior oil and gas exploration company that was sold to Talisman Energy for more than $900 million in Since 1989, Gren has been the Chairman and substantial shareholder of AirBoss. Robert Hagerman, President and Chief Executive Officer Robert Hagerman obtained his CA designation in 1976 and was employed in the Montreal and later the London office of Price Waterhouse for 12 years in Audit, Insolvency, and Mergers and Acquisitions. Robert, one of the original founders and directors of AirBoss, was appointed CEO in 1992 and has been instrumental in growing the Company ever since. Stephen Richards, Vice President, Finance and CFO Stephen Richards obtained his CA designation in 1988 and was employed with Ernst & Young over a seven year period involved in various Audit, Insolvency and Management Consulting assignments. His primary responsibilities in his career with various transportation and manufacturing companies included strategic planning, systems development and performance improvement. In his previous role Mr. Richards served as Vice President of Finance for Clarke Inc., a TSX-listed transportation company, and joined AirBoss in April, Robert Dodd, Executive Vice President Robert Dodd has held either Director or VP roles at 3 previous employers prior to joining AirBoss. At Trelleborg, he was on the Board of Directors of their North American company TSS US Inc. Robert has a proven change management track record and also has prior expertise in developing and executing business strategies for both international and domestic markets in an executive capacity. With his prior experience of developing acquisition targets in India and Brazil and his recent achievement of establishing a green field site in Shanghai, China, Robert brings a wealth of international and diverse experiences to his role within AirBoss. Earl Laurie, President, AirBoss-Defense Division Earl Laurie has run the sales, marketing and contract administration of the defense products business of Acton–International Inc. since inception. With the purchase of Acton-International by AirBoss in 1999 and the reorganization into AirBoss Engineered Products (“AEP”) in 2005 Mr. Laurie is now responsible for the operations of AirBoss-Defense, the defense products division of AEP and has been instrumental in its growth.

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