1. ANNUAL MEETING MAY 12, 2009 Demanding Conditions Products in Demand

2. 2008 ANNUAL MEETING 2008 RECAP

3. 2008 Q1 2009

4. 2008 Q1 2009 Results were Defense Driven  Sales Increase 35%  Margin Increase 75%  Mix, Volume and Exchange Rubber Compounding  Sales down 16% better than industry average  2008 high priced inventory gone by April  Volume improvements noticeable in April * Read in Conjunction with 1 st Quarter Report

5. 2008 OTHER INCOME (EXPENSE)

6. 2008 EXCHANGE

7. 2008 BALANCE SHEET

8. 2008 RUBBER COMPOUNDING DIVISION

9. 2008 Customer Diversification 2005 vs. 2008 20052008 # of customers over $0.5 MM2935 Top 41 accounts as % of total98.8%99.1% # Top accounts w/good growth17 % US sales55.0%59.2% % Canadian sales44.9%39.6% % International sales0.1%1.2% Lbs sold from SN facility022.9 MM

10. 2008 Market Segment shifts (2005 to 2008) Focused growth Segments Defense total (Internal & External)Increased by 175% MiningIncreased by 32% De-emphasized Segments AutomotiveReduced by 12% Tires TotalReduced by 38%

11. 2008 New project activity 103 MM lbs of NPD opportunities - 23 MM lbs in 2009/early 2010. Kitchener trials to yield 13.8 MM lbs/year. Scotland Neck trials to yield 6.4 MM lbs/year.

12. 2008 Employee’s In 2008 absenteeism was down 42.5% versus 2005. In 2008 we saw the following Health and Safety improvements versus 2005 # recordable injuries down by 42.5% # of lost time days down 76.4% # of light duty days down 44.4%

13. 2008 ARC Operational Performance 2008 vs. 2005 Throughput/hr has increased by 19.4% Downtime has been reduced by 20.1% % rework is down by 12.4% PPM returns are down by 43.4% On-time delivery has improved so much that’s its now a significant competitive advantage. We have maximized/optimized efficient equipment. Kitchener’s break even point has been reduced by 20%.

14. 2008 2005 to 2008 key initiatives implemented Developed a segmented sales approach and focus. Targeted new markets/segments. De-centralized operational functions. Improved speed to market. Reduced system wide waste with focus only on value added activities Global procurement enhancement.

15. 2008 Conclusions and Outlook for ARC ARC’s customer base is more diversified than ever. ARC’s global footprint is a competitive advantage and expanding. ARC operationally is performing very well. ARC is now a better place to work for our associates and they continue to make ARC a great company. ARC has a healthy balance sheet and is solid financially As our addressable markets consolidate only the strong suppliers with survive – ARC is a strong supplier.

16. 2008 What can you expect to see next? ARC will expand rapidly into traditionally non core segments/markets. Stress in the markets will provide opportunities for those in a solid enough position to take advantage of them - we will be there for the long haul. We will continue to build on our US presence via our new Scotland Neck facility. We are a solid #2 in the America’s and heading for #1.

17. 2008 AIRBOSS-DEFENSE

18. 2008 DEFENSE 2009 SALES 2007$27 MILLION 2008$38 MILLION40% 2009Another 30% to 40% possible

19. 2008 AIRBOSS-DEFENSE CBRN VOLUME FORECAST - OVERBOOTS

20. 2008 AIRBOSS-DEFENSE CBRN VOLUME FORECASTS - GLOVE

21. 2008 AIRBOSS-DEFENSE 2 nd Quarter production changes to meet demand: Injection moulding 3 shifts, 7days/week Overboot capacity increased U.S. Expansion project

22. 2008 AIRBOSS-DEFENSE U.S. EXPANSION Location announcement 30 days In production 1 st Quarter 2010 Injection Moulding  Gloves  Next Generation Overboot

23. 2008 AIRBOSS-DEFENSE 2009 Volume increases, favorable product mix and exchange will positively impact profitability Most of net U.S. $ receipts locked in at $0.82 for 2009 2010 will be even more exciting

24. 2008 Chairman’s Closing Comments AirBoss has recorded operating profits since 1995 We continue to see growth for the future Defense sales increases in 2009 and further expansion in 2010 Rubber Compounding Division returning to normal profitability Exploring value added opportunities

25. 2008 Chairman’s Closing Comments cont’d. Continuation of Dividend Policy  Semi-annual dividend  2.5 cents payable to shareholders of record June 30, 2009  Issuer Bid to purchase up to 1.8 million Company shares

26. 2008 THANK YOU! CUSTOMERS SHAREHOLDERS DIRECTORS EMPLOYEES

27. 2008 FORWARD LOOKING STATEMENT DISCLAIMER This report contains forward-looking statements, which reflect managements best judgment based on factors currently known but involve significant risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including but not limited to risks more fully described in the “Risk Factors” section of the Company’s Annual Report, and other risks detailed in filings with the Ontario Securities Commission. Forward-looking information provided pursuant to the safe harbor established by recent securities legislation should be evaluated in the context of these factors.

28. 2008 Question and Answer Period

29. Thank-you