1. D UFF & P HELPS, LLC Valuing ESOP Shares Presented by Lee Bloom 18 th Annual Ohio Employee Ownership Conference D UFF & P HELPS, LLC Akron, OH April 16, 2004

2. D UFF & P HELPS, LLC 1 Overview of Valuation Components Enterprise Value Add: Cash and Non-Operating Assets Less: Debt and Contingent Liabilities Aggregate Equity Value Divide by Shares -> Price per Share

3. D UFF & P HELPS, LLC 2 Value Components Debt Equity Enterprise Value Company Value Total Value

4. D UFF & P HELPS, LLC 3 Non-Marketable Minority Interest Value Marketable Minority Interest Value Control Value Valuation Basis 65 100 130

5. D UFF & P HELPS, LLC 4 Determining the Value Analyze Historical Performance Apply Valuation Methods Valuation Conclusion Project Future Performance Analyze the Industry Assess Valuation Methods 1 5 3 4 2 6

6. D UFF & P HELPS, LLC 5 Valuation Methodologies  Comparable Companies  Discounted Cash Flow  Comparable Transactions  Asset Values  Liquidation  Final Analysis - Judgment

7. D UFF & P HELPS, LLC 6 Comparable Company Analysis  Valuation based on comparison to publicly traded companies  Analysis of financial performance and qualitative characteristics  Selection of trading multiples  No company will be exactly similar

8. D UFF & P HELPS, LLC 7 Typical Valuation Multiples  Equity Multiples Price / Earnings (P/E) Price / Book Value  Enterprise Multiples Enterprise Value / EBITDA Enterprise Value / EBIT Enterprise Value / Revenues

9. D UFF & P HELPS, LLC 8 Risk Factors  Relative Size  Breadth of Customer Base  Diversity of Product Offering  Diversity of Geographic Footprint  Leverage

10. D UFF & P HELPS, LLC 9 Growth Factors  Industry Outlook  Reinvestment Requirements  Acquisition Strategy  New Products  Leverage

11. D UFF & P HELPS, LLC 10 Discounted Cash Flow Analysis  Project future cash flow generated by the company  Discount cash flows to the present at an appropriate discount rate  DCF analysis captures company specific assumptions, making it a very robust analysis

12. D UFF & P HELPS, LLC 11 Project Future Performance  Revenue growth  Operating margins  Working capital needs  Capital assets needs  Risk adjusted discount factor

13. D UFF & P HELPS, LLC 12 Typical Valuation Timetable Week 1 to 3 3 to 4 Valuation Activity 0 to 1 Information request Final conclusions Final documentation Due diligence meetings Analysis Presentation of preliminary conclusions

14. D UFF & P HELPS, LLC 13 Lee S. Bloom Managing Director D UFF & P HELPS, LLC 311 S. Wacker Drive, Suite 4200 Chicago, IL 60606 (312) 697-4680 Lee.Bloom@duffllc.com www.duffllc.com D UFF & P HELPS, LLC