PHILLIPS TRAINING February 26, 2010

INTRO Welcome To Our Second Phillips Sales Team Webinar. You will recall on our last Webinar we had a technical session on the PERMALOGIC™ SELECTOR SYSTEM. This Series will also include a new product introduction but our main focus today will be a discussion of our direction in 2010. I spoke with all of the Rep agency principals at the first of the year and it was suggested that next time they thought it would be helpful to include all of their sales people. I agree and without directly repeating that discussion I will be addressing some of the key information we exchanged to ensure we are all focused on the same goals this year. Let’s get started. Please hold any questions or comments to the end of the call but feel free to use the WebEx Feature to type any questions you may have as we proceed through the presentation and we’ll address them at the conclusion.

UNIQUE PRODUCT REVIEW QCP™ Tracker Bar Spring with QWIK-SNAP™ Electrical & Air Hose Assembly – 3 N’ 1 Dual Pole Economy Assembly Document Holder CLEAR-VU™ Battery Jumpers Rubber Air Lines PolarAir®

QCP™ ASSEMBLY Available w/ the ABS LECTRACOIL™, ABS PERMACOIL™, PERMACOIL™ and Straight LEXTRAFLEX™, Electrical & Air Hose Assembly COMMON SELLING CHALLENGES – Unique design is usually well received but the higher price can be challenging to distributors and fleets with a commodity part mindset and uncertainty of its ROI proposition. HOW TO SELL – The ROI statement is that “time is money” 20 seconds vs. 20 minutes, repairs do not shorten the cord, control wide price swings on cords (copper) because it is a serviceable part instead of replacing at current market prices.

TRACKER BAR SPRING KIT TRACKER BAR SPRING KIT / QWIK-SNAP™ HOSE HOLDER COMMON SELLING CHALLENGE – Awareness Mainly and may be replacing with OE Sprague Prutsman Spring, plastic hose holder hardiness. HOW TO SELL – Quick attachment carabineer so tracker bar does not have to be removed, stronger spring, bottom carabineer is robust, QWIK-SNAP™ feature is easy with minimal moving parts (see next item) QWIK-SNAP™ Hose Holder COMMON SELLING CHALLENGE – Almost none but questions regarding it’s ability to withstand winter weather. HOW TO SELL – It has few moving parts, doesn’t rust or require cutting to be removed, easy and fast to install/remove, made of a similar nylon blend as used on all STA-DRY® sockets that have with stood cold weather for years.

ELECTRICAL & AIR HOSE ASSEMBLY – 3 N’ 1 COMMON SELLING CHALLENGE – Price as compared to Sloan and Tectran. HOW TO SELL – Price is comparable to competitors, real advantage is the QCP™ version can be repaired without shortening cord or unwrapping entire assembly for cord replacement for a slight premium. Saves Time/Money.

DUAL POLE ECONOMY ASSEMBLY COMMON SELLING CHALLENGE – Awareness HOW TO SELL – Strictly to Provide an Economy version of our standard dual pole, less durable jacketing material (comparable to competitor).

DOCUMENT HOLDER COMMON SELLING CHALLENGE – Competitor Unit Is Less Expensive HOW TO SELL – The Betts version is a pry off style easily breaking or losing lids, TruckLite version has thin tang that breaks easily and is tethered to prevent lid los except the cable gets caught in the lid and breaks lid and lip often. Ours is larger internally but still fits standard holes in trailer, more robust tang holds gasketed lid more snugly preventing damage and moisture from entering unit. 4 Paddle lid is easier to open with gloved hand. Strong, stainless retainer spring. Betts & Trucklite

CLEAR-VU™ BATTERY JUMPERS COMMON SELLING CHALLENGE – Competitors Standard Cable is less expensive. HOW TO SELL – The benefit to the fleet is ability to identify corrosion before it’s a serious problem via translucent jacket. Available in all configurations for all trucks. Cost considerably less than Julian Electric OE jumper sold by Freightliner.

RUBBER AIR LINES COMMON SELLING CHALLENGE – Fleet is making it’s own or distributor sells bulk or makes hoses. HOW TO SELL – The fleet spends more money to make their own considering time and labor and they do not have a grip. Our pre-made version also shields the fleet from possible DOT liability should their shop made airline fail.

POLAR AIR® COMMON SELLING CHALLENGE – Awareness, may be using Philatron Stallion or Sloan MaxxDuty cold weather lines. HOW TO SELL – Philatron product uses a pvc handle which is prone to cracking in cold temps in lieu of our more robust 3” brass ferule, Sloan product has no handle, all have 3 Year Warranty, comparably priced, ours exceeds cold weather limit of both by 15 degrees to –85°F.

COILED AIR GLADHAND ASSEMBLY COMMON SELLING CHALLENGE – Fleet Understands the importance of a pre-assembled setup but distributors tend to view it as redundant inventory because they carry gladhands and coiled air. HOW TO SELL – Convince distributor via fleet pull through, the fleet always has to replace a gladhand when they buy a coiled airline so why not by them assembled, with pipe sealant and factory torqued for the same price.

PERMALOGIC™ PERMALOGIC™ SELECTOR SYSTEM PERMALOGIC™ COMMON SELLING CHALLENGE – Awareness, Expense. HOW TO SELL – Product has a specific market which is fleets that operate in condensed inter city environment, running reefers and liftgates with anti idling laws and heavy liftgate cycling. Limited market but an excellent solution in lieu of AGM battery that is just a better battery. Charges liftgate via trail charger drawing power alternately from reefer and tractor batteries. PERMALOGIC™ COMMON SELLING CHALLENGE – Awareness, Expense HOW TO SELL – In various configurations, prevents battery drain issues by controlling dome lamps and charging of secondary battery sources via power drawn from 7 way aux pin.

DISPLAYS, BUCKETS AND PLANOGRAMS COMMON SELLING CHALLENGE – Awareness, Space HOW TO SELL – Variation of displays from POP’s, to small footprint bucket display to entire gondola’s. Easily customized to store.

CHARGE-BOX™ F&B’s NEW THE RIGHT EQUIPMENT EVERY TIME! STA-DRY® Nosebox with single and dual pole socket PART NUMBER 16-77712 CHARGE-BOX™, STA-DRY® nosebox with single and dual pole socket COMMON SELLING CHALLENGE – Awareness HOW TO SELL – No competitors, ideal solution for leasing fleets that have trailers towed by a variety of tractors and no idea of whether they use a single or dual pole charging cable for the liftgate. Truly universal. NEW

PERMALITE™ XB NEW F&B’s 2X more light output than competitive lamps! Draws only 1.8 amps at 12V DC 1” thin (73” recessed) design can fit just about any application UNBREAKABLE polycarbonate lens and housing PART NUMBER 60-2215 Individual Retail Boxes 60-2216 Bulk, 6 Pack COMMON SELLING CHALLENGE – Awareness, Competitors HOW TO SELL – Simply light the light while comparing to competitors light, very bright beam, brilliant white color, unbreakable lens and housing with wide dispersion light pattern, competitively priced. 3 YEAR WARRANTY

SALES TOOLS PROMO BUILDERS & ONLINE LABEL BUILDERS DI’S OPPORTUNITY REPORTS QUOTES NOTE: Megan is working on a cheat sheet for the DI program, OPB & OLB