1. Recent Advances in Soyad ® Adhesives Don Saylor & Dr. Jim Wescott HPVA Meeting Scottsdale, AZ May 25, 2010

2. 2 Outline  Soyad Program Development  Emissions  Durability  Summary / Path Forward

3. 3 5+ years of growth  14 North American HWPW-VC, HWPW-CC, & EWF mills currently manufacture with Soyad ® adhesives  Approximately 50% of the adhesives used to manufacture domestic HWPW & EWF stock panels are Soyad ® adhesives  Currently replacing over 75 million lbs of UF adhesive in HWPW & EWF annually

4. 4 Soyad Timeline

5. 5 Soy Flour + Curing Resin Process and Performance Additives Soyad ® Adhesive Technology CROSSLINKED ADHESIVE

6. 6 Soyad Technical Advances  Higher Solids  Lower Viscosity  Increased Stability  Adhesion Performance Modifiers  Crosslinker Advancements -Lower VOC’s -New technology allows for solids >50% Traditional Solids for paper chem 12-20% -Lower viscosity technology has been developed

7. 7 Why Choose Soyad?  100% NAF Adhesive  The most cost effective NAF option  Wide operating window  The Four S’s: Safe, Simple, Sticks, Stable  Very easy to clean up  Excellent durability- hot or cold water conditions  Commitment to Excellence

8. 8 Commitment to Excellence 600 Technical Service Chemical Engineers in NA available to support Soyad!

9. 9 Why Choose Soyad?  100% NAF Adhesive  The most cost effective NAF option  Wide operating window  The Four S’s: Safe, Simple, Sticks, Stable  Very easy to clean up  Excellent durability- hot or cold water conditions  Commitment to Excellence

10. 10 Why Choose Soyad?  100% NAF Adhesive  The most cost effective NAF option  Wide operating window  The Four S’s: Safe, Simple, Sticks, Stable  Very easy to clean up  Excellent durability- hot or cold water conditions  Commitment to Excellence  Extremely low emissions under ALL conditions

11. 11 Low Emissions Under ALL Conditions  CARB specifies “Large Chamber ASTM E-1333” as the primary test method  E-1333 is conducted at only 25 C and 50% RH -Most test are run at extremes… not this one!  UF chemistry suffers from hydrolysis resulting in the GENERATION and subsequent evolution of ADDITIONAL formaldehyde

12. 12 Emissions: Temp and Humidity Effects  Static method in sealed bottles -(modified EN 717-3)  Varying levels of humidity and temperature  Varying durations  Soyad and ULEF samples tested (Both CARB II)  ¾” 7-ply HWPW Construction  Study was run at and in cooperation with the Forest Products Laboratory

13. 13  Estimated CARB P2 level < 10  ULEF Continues to generate additional CH2O  ULEF at 96 hrs = 33X Soyad

14. 14  Soyad panels emit very little additional formaldehyde after the first 24 hours  ULEF rate is actually increasing exponentially (scavenger is consumed?)

15. 15 Similar Trend at 25 C

16. Durability in EWF

17. 17 Stability Testing of EWF  5-Ply Engineered Wood Flooring Panels  Oak/Gum/Gum/Gum/Oak construction  3/8” thickness  Samples were subjected to an extreme range of temperature/humidity combinations over 15 days to probe durability  Panels were cut into test pieces before beginning test protocol to maximize exposure of bond lines to environment.  3-Cycle soak samples (2” X 5”)  Shear samples (1” X 3”)

18. 18 Day #Condition Time (hr) Temperature (°F) Relative Humidity Theoretical MC Pre-TestConditioning727050%9.2% 1Hot/Wet248090%20.2% 2Cold/Moist241570%13.5% 3Hot/Dry249020%4.3% 4Cool/Wet243690%21.0% 5Hot/Dry249020%4.3% Post-TestConditioning727050%9.2% 3X Temperature/Humidity Cycling Protocol Stability Testing of EWF

19. 19 Length (in) Height (in) Width (in) Control Samples3.2820.9970.380 Cycled Samples3.2820.9980.380 Dimensional Stability of Shear Test Samples Panel Testing 3-Cycle SoakShear Strength Testing DryStd.%WetStd.% %ShearDev.DryShearDev.Wet TypeScorePass(psi) WF(psi) WF Control0.81100%44874832516812 Cycled0.38100%5119163267702 Shear and 3-Cycle Soak Test Results Bond lines 1 & 2 tested in shear tests (oak-gum-gum) Stability Testing of EWF

20. 20 Continued Development  Desire for higher % wet wood failure -Requirement for EN-314 -Requirement for ANSI/HPVA Type I bond  Lower cost system  Enhanced bonding to challenging veneers -Hickory, Fumed Yellow Birch  Simpler system for small veneering and assembly  Desire for a lighter cured glue color

21. 21 Summary  Soyad has been accepted in North America as a high performance, low cost, no-formaldehyde alternative  Soyad technology is developing rapidly  Soyad emissions is a key differentiator vs. ULEF  Soyad durability in EWF is excellent  Soy-based NAF composite core is coming soon !