IDC-USA IDC-USA 2010 Fall Meeting Dichtomatik Americas Presentation to General Session Wednesday, October 20th Phoenix, AZ Dan Killory: Director of PTD National Accounts John Moncrieff: Vice President of Sales Jerry Norcia: Vice President of Marketing 1

IDC-USA  Price Increase Announcements  Shaft-Eze Repair Sleeves  New O-Pak Product line  IDC-USA Freight Cost Advantages  Stock Check via IDC-USA Website  IDC Shaft Seal Program Topics 2

IDC-USA  Inch O-Rings (“Big 7” Inch Compounds)  N70 = 12%  N90, V75, BV75 = 9%  E70 = 5%  V90, S70 = (7%)  Effective 9/13/10 to all distributors (except 10/1/10 to IDC-USA).  IDC Member net prices = 65% 4 th column if thru IDC Corporate … or 65% 1 st column if purchased direct from Dichtomatik.  N70 difference in column 1 prices vs. column 4: from 79% to 123%.  Price increase does not include metric O-rings or rare inch compounds (e.g., Aflas, Chloroprene, Neoprene, etc.) Price Increase Announcements 3

IDC-USA  Extruded Cord (Inch & Metric)  N70, S70 = 10%, N50 = 7%.  V75 = 6%, BV75 = 8%  E70 = 0%  N90 = (7%)  V90 = (5%)  Effective 9/13/10 to all distributors (except 10/1/10 to IDC-USA).  IDC Member discount = 20% Price Increase Announcements 4

IDC-USA  Rotary Shaft Seals  Inch and Metric Shaft Seals = 5% Increase.  Announcement Letter: 11/1/10. Effective: 1/2/11.  No price increase on Shaft-Eze shaft repair sleeves.  No price increase on V-rings.  75% discount off list price still applies.  IDC Members enjoy a 25% price advantage vs. standard 67% discount.  Complete RSS List Price Overhaul: 1Q11  Ensure market pricing across all lines of seals and products such as V- Rings. Price Increase Announcements 5

IDC-USA Shaft-Eze Shaft Repair Sleeves Inch and Metric  Full product offering of 276 sizes in stock at 23% lower cost than SKF!  Shaft diameters up to 8.00 inches (203.2 millimeters).  New Shaft-Eze Installation and Dimension Guide available to assist you in selection and installation.  Also stocked in IDC Corporate (Indy).  23% price advantage vs. SKF equals Margin for Your Company! 6

IDC-USA New O-Pak Product Line  IDC Select O-Paks are stocked at IDC and available for immediate delivery. NEW IDC O-pak pricing is ~50% less than previous prices! Effective October 20.  Custom OEM packaging Available! Heat-sealed packets. Can print any logo. Customize label information as needed: compound, quantity, part number, dimensions, etc. Initial order per size = 60 bags Repeat order per size = 30 bags 7

IDC-USA IDC Exclusive Freight Arrangement $20 Next Day Air on orders less than 5 pounds! 30% off UPS published rates on all other Next Day Shipments! Free Ground Freight on orders of $50 or more! Backorders always shipped at No Charge! Dichtomatik Freight can improve your Gross Margin IDC-USA Titanium Freight Program 8

IDC-USA  Dichtomatik Inventory Feed to IDC-USA Website  Website shows both “Boxed” and “Bulk” Shaft Seal Availability. “Boxed” seals ship within 24 hours “Bulk seals” can be converted to boxed and shipped within 48 hours  Other Inventory visibility O-rings Shaft Eze Fluid Power  Future Plans Make the feed on-line / real time Competitor Part Number on individual shaft seal boxes - November 30, Stock Check via IDC-USA Website 9

IDC-USA IDC Members Seal Purchases  IDC-USA Shaft Seal Purchasing Power Dichtomatik accounts for only 7% of IDC Owners Current Seal Purchases  IDC-Dichtomatik Partnership Objective  Dichtomatik is IDC’s Seal Partner!  Our objective is to be the #1 supplier of inch and metric Rotary Shaft Seals to IDC member owners. Dichtomatik will be 70% of IDC Seal Purchases 10

IDC Data Required 1.24 months of Cost of Goods Sold (COGS)history by part number 2.Current Inventory Position IDC Owner Benefits  Lower seal cost/higher margins to you  Less reliance on companies that do not value your business like Dichtomatik  Credit opportunities for your individual company  Bigger rebates to IDC 11 Call to Action

Rewards for Action For every data set received by Friday, November 5, 2010, Dichtomatik will: Send the Contributor a $100 Visa Gift Card We need a minimum of 30 data sets by November 30, If we reach this goal, Dichtomatik will: Donate $5000 to the IDC Charitable Trust If we receive 50 data sets by November 30, 2010, Dichtomatik will: Donate $10,000 to the IDC Charitable Trust 12 Action Rewards

IDC-USA Thank you for your orders and continued support of Dichtomatik! 13

IDC-USA IDC-USA 2010 Fall Meeting Dichtomatik Americas Presentation to General Session Wednesday, October 20th Phoenix, AZ Dan Killory: Director of PTD National Accounts John Moncrieff: Vice President of Sales Jerry Norcia: Vice President of Marketing 14