IDC-USA

IDC-USA 2010 Fall Meeting

Dichtomatik Americas Presentation to General Session

Wednesday, October 20th

Phoenix, AZDan Killory: Director of PTD National Accounts

John Moncrieff: Vice President of Sales

Jerry Norcia: Vice President of Marketing

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IDC-USA

Price Increase Announcements

Shaft-Eze Repair Sleeves

New O-Pak Product line

IDC-USA Freight Cost Advantages

Stock Check via IDC-USA Website

IDC Shaft Seal Program

TopicsTopics

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IDC-USA

Inch O-Rings (“Big 7” Inch Compounds) N70 = 12%

N90, V75, BV75 = 9%

E70 = 5%

V90, S70 = (7%)

Effective 9/13/10 to all distributors (except 10/1/10 to IDC-USA).

IDC Member net prices = 65% 4th column if thru IDC Corporate … or 65% 1st column if purchased direct from Dichtomatik.

N70 difference in column 1 prices vs. column 4: from 79% to 123%.

Price increase does not include metric O-rings or rare inch compounds (e.g., Aflas, Chloroprene, Neoprene, etc.)

Price Increase AnnouncementsPrice Increase Announcements

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IDC-USA

Extruded Cord (Inch & Metric) N70, S70 = 10%, N50 = 7%.

V75 = 6%, BV75 = 8%

E70 = 0%

N90 = (7%)

V90 = (5%)

Effective 9/13/10 to all distributors (except 10/1/10 to IDC-USA).

IDC Member discount = 20%

Price Increase AnnouncementsPrice Increase Announcements

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IDC-USA

Rotary Shaft Seals Inch and Metric Shaft Seals = 5% Increase.

Announcement Letter: 11/1/10. Effective: 1/2/11.

No price increase on Shaft-Eze shaft repair sleeves.

No price increase on V-rings.

75% discount off list price still applies.

IDC Members enjoy a 25% price advantage vs. standard 67% discount.

Complete RSS List Price Overhaul: 1Q11 Ensure market pricing across all lines of seals and products such as

V- Rings.

Price Increase AnnouncementsPrice Increase Announcements

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IDC-USA

Shaft-Eze Shaft Repair SleevesShaft-Eze Shaft Repair Sleeves Inch and Metric

Full product offering of 276 sizes in stock at 23% lower cost than SKF!

Shaft diameters up to 8.00 inches (203.2 millimeters).

New Shaft-Eze Installation and Dimension Guide available to assist you in selection and installation.

Also stocked in IDC Corporate (Indy).

23% price advantage vs. SKF equals Margin for Your Company!

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IDC-USA

New O-Pak Product LineNew O-Pak Product Line IDC Select O-Paks are stocked at IDC and

available for immediate delivery. NEW IDC O-pak pricing is ~50% less than

previous prices! Effective October 20.

Custom OEM packaging Available! Heat-sealed packets.

Can print any logo.

Customize label information as needed: compound, quantity, part number, dimensions, etc.

Initial order per size = 60 bags

Repeat order per size = 30 bags

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IDC-USA

•IDC Exclusive Freight Arrangement$20 Next Day Air on orders less than 5 pounds!

30% off UPS published rates on all other Next Day Shipments!

Free Ground Freight on orders of $50 or more!

Backorders always shipped at No Charge!

Dichtomatik Freight can improve your Gross Margin

IDC-USA Titanium Freight ProgramIDC-USA Titanium Freight Program

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IDC-USA

Dichtomatik Inventory Feed to IDC-USA Website Website shows both “Boxed” and “Bulk” Shaft Seal Availability.

“Boxed” seals ship within 24 hours

“Bulk seals” can be converted to boxed and shipped within 48 hours

Other Inventory visibility O-rings

Shaft Eze

Fluid Power

Future Plans Make the feed on-line / real time

Competitor Part Number on individual shaft seal boxes - November 30, 2010.

Stock Check via IDC-USA WebsiteStock Check via IDC-USA Website

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IDC-USA

IDC Members Seal PurchasesIDC Members Seal Purchases IDC-USA Shaft Seal Purchasing Power

Dichtomatik accounts for only 7% of IDC Owners Current Seal Purchases

IDC-Dichtomatik Partnership Objective

Dichtomatik is IDC’s Seal Partner!

Our objective is to be the #1 supplier of inch and metric Rotary Shaft Seals to IDC member owners.

Dichtomatik will be 70% of IDC Seal Purchases

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IDC Data Required

1. 24 months of Cost of Goods Sold (COGS)history by part number

2. Current Inventory Position

IDC Owner BenefitsLower seal cost/higher

margins to youLess reliance on

companies that do not value your business like Dichtomatik

Credit opportunities for your individual company

Bigger rebates to IDC

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Call to ActionCall to Action

Rewards for Action• For every data set received by Friday, November 5, 2010,

Dichtomatik will:

Send the Contributor a $100 Visa Gift Card

• We need a minimum of 30 data sets by November 30, 2010. If we reach this goal, Dichtomatik will:

Donate $5000 to the IDC Charitable Trust• If we receive 50 data sets by November 30, 2010,

Dichtomatik will:

Donate $10,000 to the IDC Charitable Trust

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Action RewardsAction Rewards

IDC-USA

Thank you for your orders and continued support of Dichtomatik!

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IDC-USA

IDC-USA 2010 Fall Meeting

Dichtomatik Americas Presentation to General Session

Wednesday, October 20th

Phoenix, AZDan Killory: Director of PTD National Accounts

John Moncrieff: Vice President of Sales

Jerry Norcia: Vice President of Marketing

14