1 The World of Epoxy Adhesives TRFA Annual Meeting Philadelphia PA November 11, 2003 David P. Nick DPNA International Inc.

2 Global Formulated Adhesive Market Demand 2002 Global Formulated Adhesive Market Demand: 18.0 billion pounds ♦ $24.5 billion ♦ AGR 3.0% Source: DPNA International Inc.

3 Global Formulated Adhesive Resin Demand 2002 Global Formulated Adhesive Market Demand: 18.0 billion pounds ♦ $24.5 billion ♦ AGR 3.0% Source: DPNA International Inc.

4 Global Liquid Epoxy Resin Production 2002 Total Liquid Epoxy Resin Demand: 2.14 billion pounds ♦ 970 thousand metric tons ♦ $2.0 billion ♦ AGR 4%-5% Source: DPNA International Inc.

5 Major Epoxy Resin Producers  Dow Chemical  Resolution Performance Products  Vantico  Nan Ya  Chang Chun  Others

6 Major Adhesive End Use Segments North America West Europe Latin AmericaJapan China/ Other Construction Assembly Consumer/DIY Transportation Mature Source: DPNA International Inc. Growth

7 Major North America Epoxy End Use Segments Mature Construction DIY GrowthAssembly Large MarketSmall Market Transportation

8 New Technical Developments Affecting Epoxy Demand  Toughened Epoxies  High Performance Underwater Curing  < 5 Minute RT Curing  One Pack Systems  Hybrid Polymers  Dispensing Equipment  Curing Systems  Expanding Assembly Applications

9 Global Assembly Market

10 Global Fastening Market-2002 Total Market Value: $802 Billion Source: DPNA International Inc.

11 Assembly Market Source: DPNA International Inc. Percent Growth Rate

12 Comparison of Competing Adhesives (Million Pounds) Source: DPNA International Inc. 3,0% AGR 4,0% AGR 5,0% AGR 3,0% AGR 7,0% AGR

13 Epoxy Adhesive Regional Growth Comparison Source: DPNA International Inc. Percent Growth Rate

14 Global Epoxy Adhesive Market Driving Forces  Economic recession in the USA and Europe  Stagnant growth in Japan  Recent price increases  Fluctuating oil prices  War in Iraq

15 Global Epoxy Adhesive Market Driving Forces (Continued)  Continued growth in China  Environmental and health concerns (Europe/Japan)  Consolidation and changing suppliers  Customer and market relocation

16 Macro Trends and Issues  E-Commerce  Rising Energy Costs  Shrinking Profits  Backward Facing Support  Partnering for Success  Consolidation/Globalization  Niche Marketing

17 New Market Trends and Opportunities  Fastening options  Changing substrates  New polymers  Market dislocations

18 Future Outlook Growth will come from new bonding applications and polymer developments

19 David P. Nick President DPNA International, Inc. 126 Allendale Circle Troutman, NC - USA Tel (704) Fax (704) Website: