1. Monmouth Capitalizing on Distress Nicolas Lindstrom Samuel Nadeau Franco Perugini

2. Mandate Strategic RationaleValuationImplementationConclusion How should Monmouth approach the Robertson opportunity?

3. Recommendation MandateStrategic RationaleValuationImplementationConclusion Offer 2.1 NewCo shares for every 1 Robertson share; Valuing the Company at $29.2M or $50 per share Accretive as of 2005

4. Strategic Rationale

5. What are you buying? MandateStrategic RationaleValuationImplementationConclusion Quality product with powerful brand nameKnowledgeable & experienced staffHighly sophisticated and far reaching distribution system Reaches 2,100 wholesalers & 15,000 retailers 137 countries Poor Recent Performance Lower sales growth, margins & efficiency ratios

6. Monmouth Acquisition Criteria MandateStrategic RationaleValuationImplementationConclusion Major Player Largest Domestic Manufacturer of cutter & edge tools Stable & Broad Market 50% Market share in clamps & vices 4 th largest in scissors & sheers Leading Company Leading company in it’s two main product lines Top competitor in other product segments

7. The Benefits of the Mergers MandateStrategic RationaleValuationImplementationConclusion Reduction in Cost of Goods Sold 69% -> 65% of Sales Selling, General & Administrations Costs 22% -> 19% of sales Integrate Roberston’s distribution system Increase Monmouth’s reach for its product lines

8. Rationale MandateStrategic RationaleValuationImplementationConclusion Cash Offer: 42$ Acquired 30% Opposed by Management Simmons Offer Share swap 5:1 Volatility in NDP Stock (53.1 -> 23.12) Opposed by Simmons NDP Offer 2:1 Share Swap: 50$ Supported by Simmons & Management (50% of ownership) Manmouth Offer

9. Valuation

10. Valuation Overview MandateStrategic RationaleValuationImplementationConclusion Proforma Accretion/DilutionPF DCF Value Standalone Valuation DCFMultiples Robertson Standalone Income StatementWorking Capital

11. Standalone Assumptions MandateStrategic RationaleValuationImplementationConclusion Income Statement Revenue growth of 3% COGS decrease from 68.5% to 67% of sales Slight SG&A leverage to 21.5% of sales from 22% Valuation D&A equal to Capex to reflect low growth (3%) WACC of 9.6%; Terminal growth of 2%

12. Income Statement MandateStrategic RationaleValuationImplementationConclusion Operating leverage from SG&A optimization

13. Working Capital MandateStrategic RationaleValuationImplementationConclusion Assumes flat WC ratios

14. Comparable Companies MandateStrategic RationaleValuationImplementationConclusion Robertson is slightly more levered

15. WACC MandateStrategic RationaleValuationImplementationConclusion Re-levering the comparable betas provides a Robertson beta of 1

16. DCF MandateStrategic RationaleValuationImplementationConclusion Depreciation offsets capex

17. DCF - Standalone MandateStrategic RationaleValuationImplementationConclusion $25.40 standalone intrinsic value; stock most likely bid up due to takeover buzz

18. Deal Proposal MandateStrategic RationaleValuationImplementationConclusion Minimum offer price needs to be $50 for support, therefore offer $50.

19. Pro-Forma P&L MandateStrategic RationaleValuationImplementationConclusion Monmouth takeover would lead to outsized growth and leverage

20. Accretion/Dilution MandateStrategic RationaleValuationImplementationConclusion Deal turns accretive in 2005 from Synergies

21. Implementation

22. Timeline MandateStrategic RationaleValuationImplementationConclusion

23. Ownership Structure MandateStrategic RationaleValuationImplementationConclusion Swap Ratio 2.1X Monmouth 78% Simmons 7%

24. Rationale MandateStrategic RationaleValuationImplementationConclusion Reduce 3% Reduce sales Force/Marketing 2% Operating Backs store

25. Long-term timeline MandateStrategic RationaleValuationImplementationConclusion

26. Management Recommendation MandateStrategic RationaleValuationImplementationConclusion Reduce inventories Increases efficiency Integrate product linesReduce advertising expenseBuild on distribution

27. Conclusion MandateStrategic RationaleValuationImplementationConclusion