1. New Architectural Coatings Technology Targeted At Stricter Hospital Infection Protocols From Great Raw Materials Come Great Coatings

2. AgendaIntroduction to the Problem Research and Input from Healthcare Decision Makers The Technology: Durability Testing and Comparisons Summary Questions and Answers Page 2

3. AgendaIntroduction to the Problem Research and Input from Healthcare Decision Makers The Technology: Durability Testing and Comparisons Summary Questions and Answers Page 3

4. Hospital acquired infections are the fourth largest cause of death in U.S… Page 4 The issue is significant and actions are being taken Timing is right The issue is significant and actions are being taken Timing is right HOSPITAL-ACQUIRED INFECTIONS KILL 270 PEOPLE A DAY in NYC alone (Source:http://www.nyinjurytalk.com/2008/01/hospitalacquired_infections_ki_1.html) Deadly Admissions: Hospital-Acquired Infections Are 4th-Largest Killer in U.S., But Ohioans Cannot Get Statistics to Compare Facilities By Tracy Wheeler, The Akron Beacon Journal, Ohio Jan. 9--But for 20 million Americans each year -- about one in every 10 to 20 patients -- a trip to the hospital results in dangerous, lingering infections, whether through surgery, dialysis, ventilators, IVs, or catheters. At an estimated 90,000 deaths a year, these hospital-acquired infections kill as many people in the United States as AIDS, breast cancer and car accidents combined. (Source:http://www.redorbit.com/news/health/351010/deadly_admissions_hospitalacquired_infections_are_4thl argest_killer_in_us_but/#) Medicare Will Not Pay For Hospital Mistakes And Infections, New Rule (Source: http://www.medicalnewstoday.com/articles/80074.php)

5. The Problem Value Proposition: Safety and Economics Page 5 Healthcare related organizations develop more stringent standards: The Center for Disease Control (CDC) puts out “Guidelines for Disinfection and Sterilization in Healthcare Facilities, 2008” outlining Harsher disinfection chemicals More frequent cleaning The Joint Commission (TJC) incorporates tougher disinfection protocols in their guides for high risk environments in hospitals such as emergency and operating rooms, trauma bays, procedure rooms. The Result: Traditional wall paints are not holding up long term to the increased scrubbing and harsher chemicals

6. The Problem Value Proposition: Safety and Economics Page 6 Meanwhile, insurers recognize the issue and take action: Medicare changes their insurance protocols: As of January 2009, will not pay for Hospital Acquired Infections (HAI) Treatment costs will belong to the hospital Soon after, most major medical insurers follow The Result: Hospitals enact increased preventative measures to greatly reduce the chance for HAI for patient safety and economic viability

7. AgendaIntroduction to the Problem Research and Input from Healthcare Decision Makers The Technology: Durability Testing and Comparisons Summary Questions and Answers Page 7

8. Defining the Problem Multiple Points in the Value Chain Page 8 To define the unmet need, we engaged stakeholders: Hospital Facility Managers Architect/Spec Writers Hospital Administrators Painting Contractors Hospital Accreditation Organizations And listened to how they defined the problem

9. Research from Key Hospital Personnel Goal: Reduce repaint cycle, keep areas safe, save money Page 9 After listening, we heard that they wanted: A more durable, scrubbable wall coating in the high risk areas A very low odor coating that would not disrupt operations ‘Warmer’ eggshell or matte coatings but still have durability An easier to clean and seamless surface Less downtime in these high operating cost areas To use their in-house painters more on patient rooms and hallways

10. Research from Key Hospital Personnel Goal: Reduce repaint cycle, keep areas safe, save money Page 10 Values are Typical

11. Input from Healthcare Community Hospital Facility Managers and Administrators The Preferred Attributes from Around the Country

12. The Value Proposition From the Hospital’s Point of View Page 12 For the hospital administrator who is concerned with meeting the CDC protocols without sacrificing aesthetics and durability, a new high durability coating technology has been developed for rooms requiring frequent cleaning that offers improved durability and resistance to harsh cleaners and disinfectants without sacrificing appearance. Compared with conventional wall paint: 4x more durable and scrub-able Same ease of use, color palette, and low gloss finish Compared to tile: 4-5x lower cost Better design latitude for future color schemes

13. AgendaIntroduction to the Problem Research and Input from Healthcare Decision Makers The Technology: Durability Testing and Comparisons Summary Questions and Answers Page 13

14. The HD Wall Coating Technology Architectural Wall Paint Alternative Page 14 Two Component Waterborne Polyurethane Technology Built on Bayer’s HD Wall Coating Technology Attributes: High Durability even in an eggshell or flat finish ‘Silky’ surface makes cleaning easier Excellent chemical and disinfectant resistance Very low odor during installation and drying Ultra low VOC and solvent at 15g/l or less Same color palette as traditional architectural wall paint

15. Waterborne Technologies: 2K chemistry with excellent overall properties “Water is Green” Early “waterborne” coatings had as much as 300g/l of co-solvent New commercial systems are now at 0-15 g/L Offer viable replacement products to solventborne epoxy or polyurethane systems The Technology 2K Waterborne Coatings

16. OH The Technology 2K Waterborne Coatings Chemistry: 2K aliphatic polyurethane based on polyurethane or polyacrylate dispersions and aliphatic isocyanates OCN NCO React to form A Polyurethane Coating Polyurethane DispersionAliphatic Isocyanate

17. Durability Testing and Comparison Tested with Typical Disinfection Chemicals Page 17 Paint or CoatingVOC* g/l Clorox Cleanup® Double Rubs* Ecolab Disinfectant Cleaner® Double Rubs* Betadine® 1 hr. spot test** 1K Waterborne Acrylic 14454104 3 1K Waterborne Acrylic 24062380 2 1K Waterborne Acrylic 30250400+ 2 1K Waterborne Epoxy A155280400+ 2 1K Waterborne Epoxy B96320400+ 2 1K Waterborne Epoxy C96275400+ 2 2K Solventborne Epoxy169205400+ 2 2K Waterborne Polyurethane based on Bayer’s HD technology 2400+ 1 Values are typical *From published literature **0= no stain 1= faint stain 2= yellow stain 3= brown stain

18. Durability Testing and Comparison Tested with Typical Disinfection Chemicals Page 18 Picture 1: Typical Waterborne Acrylic Picture 2: 2K Waterborne Polyurethane

19. Comparison - Odor Testing “Sniff Test” Developed to Quantify a Qualitative Observation Page 19 *values are typical Paint or Coating Odor Value* (1= low, 5= high) 1K Waterborne Acrylic 11 1K Waterborne Acrylic 21 1K Waterborne Acrylic 32 1K Waterborne Epoxy A4 1K Waterborne Epoxy B4 1K Waterborne Epoxy C4 2K Solventborne Epoxy5 2K Waterborne Polyurethane based on Bayer’s HD technology 1

20. Additional Testing Quantitative Comparisons Page 20 *values are typical System 2K WB HD Technology 2K WB HD Technology Latex ALatex BLatex C 1K WB Epoxy A 1K WB Epoxy B 1K WB Epoxy C 2K WB Epoxy Theoretical VOC g/L244440015596 169 Gloss (60º) 63257112812 Dry Time set to touch (min) 7100609 89 mar free (min) 10120+201113 Sag (mils) 6+12+

21. AgendaIntroduction to the Problem and Technology Research and Input from Healthcare Decision Makers Durability Testing and Comparisons Summary Questions and Answers Page 21

22. Summary Page 22 -There is a real need for a high durability architectural wall coating due to new protocols related to Hospital Acquired Infection control -Bayer has developed a two component waterborne polyurethane technology has been developed that allows for: High durability when exposed to harsh chemicals and repeated scrubbing Low odor during application and drying needed in a healthcare environment Meeting aesthetic requests for eggshell finish without compromising durability

23. Thank you! Questions? Page 23