1. © 2008, TSI Incorporated Oliver F. Bischof TSI - Aachen Particle Instrument CP’s EUMEA, Thessaloniki - August 24, 2008 Distributor Feedback Session 2008 Channel Partner Meeting

2. © 2008, TSI Incorporated Objective TSI Particle Instruments is dedicated to building quality products and relationships Asked you to take this survey so we can learn “How are we doing?” from your perspective –Value relationship with our distributors and your feedback is important to us –“Takes the pulse” and shows our current capacities to achieve TSI’s mission and goals Helps to make improvements where necessary

3. © 2008, TSI Incorporated (1) Participation Thank you for taking time to compete surveys! –Fully realize that deadline only 12 days after message was sent was difficult for most of you during main summer vacation time –Following 7 distributors in EUMEA have completed it Danalytic ApS Thu, 8/7 Labtronic Mon, 8/11 Luchsinger Tue, 8/19 Meteo-Tech Ltd. Thu, 8/21 Alava Ingenieros Thu, 8/21 J.J. BOS B.V. Thu, 8/21 AMS Laboratory Technologies Thu, 8/21

4. © 2008, TSI Incorporated (2) TSI Products Purchased Other –AeroSizer & AeroFlow –Fluid Mechanics products –MacroIMS –Mass flowmeters –Dustrak –OPC's (through other TSI rep in country) AIRMOAFTSTAEGENCOUNTSIZERS 43%71%86%100%

5. © 2008, TSI Incorporated (3) Rate Instruments Purchased Comments –Sometimes better specs than required Can make customers buy from competition –Quality & spec’s fine but lately repetitive problems (EEPS, WCPC) –Too much breakage after short time of use –Value / price: Customers pay any price if instrument does job Sometimes want lower priced versions (luckily no competition on research side – but for industrial application) extremely poor pooraverageexcellentN/A Ease of use43%57% Meets specs29%71% Quality14% 71% Value / price57%29%14%

6. © 2008, TSI Incorporated (4) (5) Product Gaps (4) What new products and services would you like to see TSI offer? –Products for mass related (PM) measurements –Multi-channel OPC for long-term use –Particle analysis in liquid phase –Rheology of particles –Spanish manuals, marketing material data base –Faster service and cheaper on-site service (5) Any other companies that currently offer them? –Many. PM still EU standard, and will be for >2 decades –Grimm is offering such OPC’s –There are companies that offer such particle-in-liquid instruments in Israeli market

7. © 2008, TSI Incorporated (6) Rate Experience w/ TSI Service very unsatisfied unsatisfiedsatisfiedvery satisfied N/A Turnaround time on repair or calibration meets expectations 43% 14% Product manuals meets expectations 14%43%29%14% Comments on turnaround times –Vary, on average good but there are exceptions –Customers always want systems back faster then we do –3 month to service a CPC is too much (if only calibration) –Were much better when service was at Aachen (response to service questions was better too) Too long to get accurate answers from service dept. in U.S. Customers consider costs for service too high

8. © 2008, TSI Incorporated (7) Delivery Expect. New Products What delivery expectations do you or your customers have for new products (calendar days)? –14 to 28 days: 1x (depending on product) –21 to 28 days: 2x –30 to 40 days: 2x (for “bigger” instruments) –42 to 56 days: 2x (depending on product)  Numerical average is 28 to 39 days

9. © 2008, TSI Incorporated (8) Number of Shipments Average number of shipments you receive from TSI each month? –1 (2x) –3 (1x) –4 (1x) –8 to 12, including all TSI product lines (1x) –Also see comments under (9)

10. © 2008, TSI Incorporated (9) Meeting Delivery Expectations Comments –Usually delivery takes long but TSI reaches what promised A late few shipments - and if so they are badly late –Sometimes late and sometimes roughly on time Got worse since CP’s started ordering at TSI UK –Of smaller instruments fine; of large systems not acceptable –Appalling results Changed from one of best companies to one of worst “Will bring detailed information collected by ISO9001 system” Always meets expectations 1-2 late shipments per month 3-4 late shipments per month >5 late shipments per month 25%75%

11. © 2008, TSI Incorporated (10) Experienced Any Order Entry Issues? During past six months –Yes (57%) –No (43%) (11) What Issues? –Price of Dacron Screen in TSI’s system higher than in price list –Received instrument I did not order –Do not get Order confirmations (2x) Any information on estimated delivery and when I do, they are wrong or totally unacceptable Resolved? –Yes –No, not really

12. © 2008, TSI Incorporated (12) Ease of Doing Business With TSI? Comments –Not much flexibility (3) Specifically: warranty extensions for lower price, availability of demo units –Lack of information about reliable delivery times –Prices and conditions have been changed without notice –Key persons are hard to reach –Overall things are working out, but not as smooth as before –TSI demand to get detailed information on opportunities uses up lot of our resources very difficultdifficulteasyvery easy 33%50%17%

13. © 2008, TSI Incorporated (13) Rate Experience With TSI Technical Support Comments –Technical support is very good –Sent list of recent problems with CPC series (both water and butanol); most have been answered but not all off them Some answers took several months –Speed of response: sometimes delayed Realize people can be pressed & do several things at same time very unsatisfiedunsatisfiedsatisfiedvery satisfied Speed of response 20%80% Knowledge of products 40%60% Provided applicable documentation 20%40% Problem fully resolved 20%40%

14. © 2008, TSI Incorporated (14) Repair Service and Calibration What delivery expectations do you or your customers have (specify in calendar days)? –7 days –7 to 14 days, although longer acceptable for big units –14 to 21 days –14 to 28 days –21 days  Numerical average is 13 to 18 days

15. © 2008, TSI Incorporated (15) What Competitors Are Biggest Threat To You and TSI? Comments –Grimm (due to price), but have not lost much to them at all –*Manufacture e.g. new dual and multi-channel OPC’s (PM x mass concentration) & gravimetric samplers for atmospheric PM x –None, products unique 123 Grimm 4x - Low cost choices with sufficient specifications - Aggressive pricing Dekati2x- Different technology FAI instruments *1x- Lower price and technology HTC1x- New player

16. © 2008, TSI Incorporated (16) How Is Business With TSI Compared To Other Companies? below averageaverageabove average Service33%50%17% Product quality17% 66% Technical support17%83% Ease of business17%66%17% Sales support33%67% Marketing support50% Comments –Reduce admin work for CP's and focus on offering support –Updates contact persons list –More available marketing info online (through a CP portal) –Service situation was very good when service was at Aachen Many problems after moving to TSI UK

17. © 2008, TSI Incorporated (17) How Satisfied Are You With TSI Overall? Satisfied: 5x Very Satisfied: 1x Comments –It is a small step to “very satisfied”, but at the same time so far away...

18. © 2008, TSI Incorporated (18) Feedback for TSI to Build & Deliver Better Products or Services Wide product range; should be “consolidated” for CP’s Testing before actual product release is crucial –Use partners, do not just test inside TSI Quality of products OK, cannot see what can be improved Service lacks at moment, can only hope it changes soon Should return to what TSI did couple of years ago and did very, very well –Focus on sales support, providing reliable (delivery) information and stick to it

19. © 2008, TSI Incorporated Any Comments?