industrial quarterly dialogue 1q10 mkmedia.navigantconsulting.com/emarketing/documents/nca/qd... ·...

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Significant Q1 Transactions March 2, 2010 – Bain Capital, LLC signed a definitive agreement to acquire Styron Corp., a manufacturer and marketer of styrenes and polycarbonates, from The Dow Chemical Company (NYSE: DOW) for approximately $1.63 billion.

March 1, 2010 – Bemis Co., Inc. (NYSE: BMS) completed the acquisition of the Alcan Packaging Food Americas division which comprises 23 flexible packaging facilities in the U.S., Canada, Mexico, Brazil, Argentina, and New Zealand of Alcan Packaging, Inc. for approximately $1.2 billion.

February 23, 2010 – Pactiv Corp. (NYSE: PTV) completed the acquisition of PWP Industries, Inc., a manufacturer of plastic packaging products, for approximately $200 million.

February 23, 2010 – Thomas & Betts Corporation (NYSE: TNB) completed the acquisition of PMA AG, a developer and manufacturer of polyamide cable protection systems, for approximately $114 million.

January 29, 2010 – OM Group, Inc. (NYSE: OMG) completed the acquisition of EaglePicher Technologies, LLC, a designer, manufacturer, and supplier of power solutions for military and commercial customers, for approximately $170 million.

January 29, 2010 – Bel Fuse, Inc. (NasdaqGS: BELF.B) completed the acquisition of Cinch Connectors, Inc., a designer, manufacturer, and supplier of electrical connectors, harnesses, cables, and assemblies for approximately $37.5 million.

January 26, 2010 – Thomas & Betts Corp. (NYSE: TNB) completed the acquisition of JT Packard & Associates, Inc., a service provider for network‐critical power equipment, for approximately $22 million.

For additional information, contact the NCA Industrial Growth Investment Banking Team:

Edward Casas, MD Senior Managing Director Head of Navigant Capital Advisors 847/583‐1619 [email protected]

Gregory F. Hagood, CFA Managing Director Investment Banking Practice Area Leader 404/504‐2017 [email protected]

Matthew Caine, CFA Director Industrial Growth Group Head 404/504‐2010 [email protected]

Alan J. Mustacchi Managing Director 646/227‐4348 [email protected]

Julie DeLong, CFA Director Valuation Services 404/602‐5021 [email protected] About Navigant Capital Advisors Navigant Capital Advisors is the dedicated corporate finance business unit of Navigant Consulting, Inc. (NYSE: NCI). Navigant Consulting is a specialized independent consulting firm providing financial, operational, dispute and regulatory advisory services to large companies, financial institutions, legal counsel and government agencies. We offer independent and objective advice supported by advanced technical skills, proven competence and in‐depth industry knowledge.

The NCA Quarterly Dialogue for Industrial Growth contains news, statistics, and trends impacting select companies within the Industrial Manufacturing and Distribution sectors. Analysis is further organized to include: (i) Analytical Instrumentation and Testing Equipment, (ii) Electronics and Components, (iii) Precision Machine Products, Tooling and Stampings, (iv) Metals (v) Resource Recovery and Waste Management, (vi) Chemicals, and (vii) Plastics and Packaging companies.

Significant Q1 Transactions

March 31, 2010 – Sherwin‐Williams Co. (NYSE: SHW) completed the acquisition of the industrial wood coatings business of Arch Chemicals, Inc. (NYSE: ARJ), a biocides company, for approximately $54 million.

March 9, 2010 – Bruker Corporation (NasdaqGS: BRKR) entered into an agreement to acquire certain product lines of Varian, Inc. (NasdaqGS: VARI) for approximately $37.5 million.

Industrial GrowthQuarterly DialogueIndustrial Growth

F IR ST QU AR TER 2010 QUARTERLY D I A LOG UE

Restructuring • Valuation • Mergers, Acquisitions & Divestitures • Private Placements

Realizing Value … Delivering Results

Atlanta • Chicago • New York • San Francisco Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC.

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Industrial GrowthF I R S T Q U A R T E R 2 0 1 0 Q U A R T E R L Y D I A L O G U E

May 2010 To The Friends and Clients of Navigant Capital Advisors:

The U.S. industrial sector experienced a solid Q1’10 with good momentum across several sectors, including order volume with early and mid‐cycle industrials and v‐shaped book/bill ratios. Late Q1 seemed to be an inflection point for producers as many had remained cautious on outlooks as late as the end of February. During March, industrial spending did pick up, particularly with small equipment, repair services and exports to Asia. As reflected below, the ISM Index is above 50, a key threshold, having reached its highest point since mid 2004 and, consistent with history, has rebounded sharply. Also, the industrial sector profitability appears to have troughed in 2009 and is ahead of past cycles due to pricing discipline and flexible labor strategies. Obviously, all is not glowing as currency concerns and international monetary policies have weighed on the market and will impact demand and overall capacity utilization has not yet signaled evidence of recovery with its historically low percentages.

ISM Index: 1948‐2010 Median Earnings Margins: Industrials, 1989‐2010

We believe the current year to be a transition year for the industrial sector and expect stronger recovery to be sustained in 2011 as inventory excesses decline, production of newer technologies accelerate and more global project‐oriented demand solidifies. With a rising ISM above 50, which is evidence to an early‐mid cycle position, industrial sectors poised for growth and performance this year appear to be power generation, HVAC, oil & gas, water, aerospace parts and mining. To the flip side, construction still is mired in weak activity as commercial and industrial starts are at their lowest point in 45 years; while demand for electrical equipment has little visibility on growth over the next year. U.S. stimulus spending will continue to support industrial demand as roughly two‐thirds of the total funding ($499 billion) is targeted for industrial sector spending. Further, 75% of the approved funds have been allocated, while only 40% of the funds have been paid out; therefore, more upside is to come. We at NCA recognize these market dynamics and deep industry implications, particularly the impact on middle market companies. We welcome the opportunity to discuss with you our wide array of advisory services for industrial growth firms.

Matt Caine, CFA Director Navigant Capital Advisors [email protected] (404) 504‐2010 Investment banking, private placement, merger, acquisition and divestiture services offered through Navigant Capital Advisors, LLC. Member FINRA/SIPC.

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INDUSTRIAL GROWTH QUARTERLY DIALOGUE

First Quarter 2010

TABLE OF CONTENTS

Upcoming Industry Conventions and Conferences 1

Market Summary 2

Industrial Growth Industry Stock Market Value Index 4

NCA Industrial Growth Universe – 5 Public Company Equity Market Value Analysis

Analytical Instrumentation & Testing Equipment 8

Electronics & Components 11

Precision Machine Products, Tooling & Stampings 14

Metals 17

Resource Recovery & Waste Management 20

Chemicals 23

Plastics & Packaging 27

Industrial Growth Industry Transactions 31

General Distressed Market Indicators 35

Industrial Growth Industry Distressed News 37

Notes / Subscription Form 41 ©2010 Navigant Capital Advisors, LLC. All rights reserved. Navigant Capital Advisors, LLC (Member FINRA, SIPC) is a wholly owned broker/dealer of Navigant Consulting, Inc. Navigant Consulting is not a certified public accounting firm and does not provide audit, attest, or public accounting services. "NAVIGANT" is a service mark of Navigant International, Inc. Navigant Consulting, Inc. (NCI) is not affiliated, associated, or in any way connected with Navigant International, Inc., and NCI's use of "NAVIGANT" is made under license from Navigant International, Inc. See www.navigantconsulting.com/licensing for a complete listing of private investigator licenses. NCA gathers its data from sources it considers reliable. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the authors and are subject to change. NCA makes no warranties, expressed or implied, regarding the accuracy of this information or any opinions expressed by the authors. (Officers, directors and employees of Navigant Consulting, Inc. and its subsidiaries may have positions in the securities of the companies discussed.) This publication does not constitute a recommendation with respect to the securities of any company discussed herein, and it should not be construed as such. NCA or its affiliates may from time to time provide investment banking or related services to these companies. Like all NCA employees, the authors of this publication receive compensation that is affected by overall firm profitability.


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Upcoming Industry Conventions and Conferences Analytical Instrumentation and Testing Equipment ISA 55th Analysis Division Symposium 2010 Denver X‐ray Conference April 25 – 29, 2010 August 2 – 6, 2010 New Orleans, Louisiana Denver, Colorado Electronics and Components Electronic Components and NI Worldwide Graphical System Design Technology Conference (ECTC) Conference & Exhibition June 1 – 4, 2010 August 3 – 5, 2010 Las Vegas, Nevada Austin, Texas Precision Machine Products, Tooling and Stampings EASTEC 2010 Association for Manufacturing Excellence May 25 – 27, 2010 November 15 – 19, 2010 West Springfield, Massachusetts Baltimore, Maryland Metals AISTech 2010 MetalCon International May 3 – 6, 2010 October 20 – 22, 2010 Pittsburgh, Pennsylvania Las Vegas, Nevada Resource Recovery and Waste Management Waste Expo 2010 The Air & Waste Management Association May 3 – 6, 2010 Annual Conference Atlanta, Georgia June 22 – 25, 2010 Calgary, Alberta, Canada Chemicals Chemical Week’s 15th Annual CFO Conference The American Institute of Chemical May 25, 2010 Engineers Annual Meeting New York, New York November 7 – 12, 2010 Salt Lake City, Utah Plastics and Packaging NPE 2010: International Plastics Showcase IoPP Annual Leadership Conference June 22 – 26, 2010 September 29 – 30, 2010 Chicago, Illinois St. Louis, Missouri


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Market Summary

Economic and Employment Data

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009Gross Domestic Product Growth 1.0% 2.8% ‐0.5% ‐6.3% ‐5.5% ‐0.7% 2.2% 5.6%Employment Cost Index (3‐month % Change) 0.7% 0.7% 0.6% 0.6% 0.3% 0.4% 0.4% 0.5%

Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10Unemployment Rate 8.6% 8.9% 9.4% 9.5% 9.4% 9.7% 9.8% 10.1% 10.0% 10.0% 9.7% 9.7% 9.7%Total Nonfarm Payroll Employment (000ʹs) 132,873 132,345 131,958 131,443 131,097 130,885 130,660 130,436 130,500 130,391 130,405 130,391 130,553Change in Nonfarm Payroll Employment (000ʹs) ‐753 ‐528 ‐387 ‐515 ‐346 ‐212 ‐225 ‐224 64 ‐109 14 ‐14 (P) 162 (P)Average Hourly Earnings $18.48 $18.51 $18.54 $18.56 $18.60 $18.68 $18.70 $18.75 $18.79 $18.78 $18.85 $18.89 (P) $18.87 (P)Consumer Price Index (1‐month % Change) ‐0.1% 0.1% 0.1% 0.7% 0.1% 0.4% 0.2% 0.2% 0.2% 0.2% 0.2% 0.0%U.S. International Trade ‐ Total Exports (Billions) $122.9 $120.6 $122.3 $124.9 $128.0 $128.2 $133.4 $137.0 $138.2 $143.2 $142.7U.S. International Trade ‐ Total Imports (Billions) $151.8 $149.7 $148.7 $152.4 $159.8 $158.9 $169.0 $170.2 $174.6 $183.1 $180.0Balance on Goods and Services Trade (Billions) ($28.9) ($29.1) ($26.4) ($27.5) ($31.9) ($30.7) ($35.7) ($33.2) ($36.4) ($39.9) ($37.3)

(P) Preliminary

Major Equity Market Indices

Index 3/31/2010 3 Months Ago 1 Year Ago 2 Years Ago 3 Months Ago 1 Year Ago 2 Years Ago

Dow Jones Industrial 10,907.4 10,428.1 7,608.9 12,262.9 4.6% 43.4% ‐11.1%NASDAQ Composite 2,410.7 2,269.2 1,528.6 2,279.1 6.2% 57.7% 5.8%Russell 2000 683.9 625.4 422.8 688.0 9.4% 61.8% ‐0.6%S&P 500 1,173.3 1,115.1 797.9 1,322.7 5.2% 47.0% ‐11.3%Wilshire 5000 12,205.7 11,497.4 8,113.1 13,332.0 6.2% 50.4% ‐8.4%

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Market Summary (continued)

Benchmark Interest Rates

Interest Rate 3/31/2010 1‐Year Ago

Prime Rate 3.25% 3.25%1‐Month Libor 0.25% 0.50%3‐Month Libor 0.29% 1.19%6‐Month Libor 0.44% 1.74%12‐Month Libor 0.92% 1.97%2‐Year Treasury 1.03% 0.81%10‐Year Treasury 3.83% 2.69%30‐Year Treasury 4.72% 3.57%

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Interest Rate Spreads

TermTreasuryYTM YTM

Spread(BPS) YTM

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Spread(BPS) YTM

Spread(BPS)

3‐Month 0.21% 0.54% 33 1.59% 138 3.27% 306 4.36% 415 6‐Month 0.28% 0.62% 34 1.68% 140 3.29% 301 4.36% 408 2‐Year 1.02% 1.69% 67 2.72% 170 4.32% 330 5.37% 435 5‐Year 2.57% 3.28% 71 4.51% 194 6.12% 355 7.24% 467 10‐Year 4.16% 4.93% 77 5.93% 177 7.48% 332 8.63% 447 30‐Year 4.99% 5.68% 69 6.65% 166 8.15% 316 9.35% 436

AA Corporate BBB Corporate BB Corporate B Corporate


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Industrial Growth Industry Stock Market Value Index

S&P Industrials Index vs. the Dow Jones Industrial Average during the last 12 months

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NCA Industrial Growth Universe –

Public Company Equity Market Value Analysis

Market Capitalizations % ChangeSegments/Companies Ticker as of 3/31/2010 ($mm) 3‐Month 6‐Month 12‐Month

Analytical Instrumentation and Testing Equipment:Ametek Inc. AME 4,424.7 7.3% 17.9% 32.5%Cognex Corp. CGNX 733.4 4.4% 12.9% 38.6%Electro Scientific Industries Inc. ESIO 353.1 19.0% ‐3.5% 120.2%ESCO Technologies Inc. ESE 841.1 ‐11.2% ‐18.8% ‐17.0%HEICO Corp. HEI 1,159.2 12.8% 17.9% 101.0%Measurement Specialties Inc. MEAS 213.5 46.4% 44.4% 260.6%Mettler‐Toledo International, Inc. MTD 3,683.9 4.0% 20.6% 113.3%MTS Systems Corp. MTSC 479.0 0.6% ‐1.7% 24.9%Varian Inc. VARI 1,504.7 0.6% 1.9% 118.6%

Electronics and Components:Baldor Electric Co. BEZ 1,749.4 33.7% 37.4% 161.0%Bel Fuse Inc. BELF.B 231.0 ‐6.0% 6.1% 51.1%Coleman Cable, Inc. CCIX 83.6 43.1% 13.7% 133.8%Cooper Industries Ltd. CBE 8,014.0 12.7% 27.9% 85.4%Eaton Corporation ETN 12,618.8 19.6% 34.7% 107.0%Littelfuse Inc. LFUS 831.7 18.8% 45.8% 248.4%Molex Inc. MOLX 3,374.7 ‐5.1% ‐2.5% 47.1%Technitrol Inc. TNL 217.8 20.8% ‐42.5% 210.7%Thomas & Betts Corp. TNB 2,066.3 10.2% 30.0% 55.2%

Precision Machine Products, Tooling and Stampings:Curtiss‐Wright Corp. CW 1,594.5 11.6% 2.6% 25.7%Hardinge Inc. HDNG 104.5 64.9% 46.1% 224.7%Hurco Companies Inc. HURC 108.4 13.7% ‐1.5% 58.8%Kaydon Corporation KDN 1,261.0 6.1% 17.1% 37.2%Kennametal Inc. KMT 2,293.0 8.7% 14.6% 93.5%RBC Bearings Inc. ROLL 692.1 31.1% 36.7% 108.7%Shiloh Industries Inc. SHLO 93.3 6.6% 26.7% 200.1%Timken Co. TKR 2,913.3 26.9% 28.4% 115.6%

Metals ‐ ProcessorsAllegheny Technologies Inc. ATI 5,301.8 20.7% 54.5% 146.7%AM Castle & Co. CAS 299.6 ‐4.5% 31.6% 46.9%Commercial Metals Company CMC 1,700.2 ‐3.7% ‐15.6% 31.1%Reliance Steel & Aluminum Co. RS 3,633.7 14.3% 16.2% 88.2%Russel Metals Inc. TSX:RUS 1,207.7 14.1% 18.6% 96.8%Schnitzer Steel Industries Inc. SCHN 1,458.5 10.1% ‐3.0% 65.4%Sims Metal Management Limited ASX:SGM 4,408.7 ‐2.4% 5.9% 44.3%Worthington Industries, Inc. WOR 1,368.9 32.4% 24.5% 99.3%

Metals ‐ Tube and Pipe Producers:AK Steel Holding Corp. AKS 2,511.5 7.6% 16.4% 218.0%Northwest Pipe Co. NWPX 201.8 ‐18.7% ‐34.8% ‐23.3%SSAB AB SSAB A 40,998.8 6.0% 19.9% 84.0%Steel Dynamics Inc. STLD 3,779.4 ‐1.1% 14.5% 135.7%Synalloy Corp. SYNL 51.0 ‐13.7% ‐14.3% 55.2%Tenaris SA CM:TEN 18,865.0 6.4% 31.2% 108.6%United States Steel Corp. X 9,106.9 15.3% 43.2% 270.9%Wolverine Tube Inc. WLVT 1.8 12.5% ‐59.1% ‐50.0%

Resource Recovery and Waste Management:American Ecology Corp. ECOL 295.0 ‐5.4% ‐13.8% 15.6%Casella Waste Systems Inc. CWST 130.3 26.0% 72.2% 197.2%CECO Environmental Corp. CECE 51.1 ‐9.6% ‐4.7% 20.4%Clean Harbors, Inc. CLH 1,458.4 ‐6.7% ‐1.1% 27.9%Heritage‐Crystal Clean, Inc HCCI 121.1 8.1% ‐11.3% 51.9%Republic Services Inc. RSG 11,056.1 2.7% 9.7% 70.2%Waste Connections Inc. WCN 2,635.6 0.5% 14.0% 28.4%Waste Management, Inc. WM 16,679.9 0.8% 13.5% 32.5%Waste Services Inc. WSII 457.4 8.6% 114.1% 131.9%WCA Waste Corporation WCAA 102.8 45.0% 61.1% 293.6%


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NCA Industrial Growth Universe – Public Company Equity Market Value Analysis

(continued)

Market Capitalizations % ChangeSegments/Companies Ticker as of 3/31/2010 ($mm) 3‐Month 6‐Month 12‐Month

Diversified Chemicals:Ashland Inc. ASH 4,119.3 33.3% 28.1% 441.2%Cabot Corp. CBT 1,986.8 15.9% 31.5% 189.1%The Dow Chemical Company DOW 34,014.2 7.6% 14.1% 335.8%Eastman Chemical Co. EMN 4,607.2 5.2% 18.4% 136.6%EI DuPont de Nemours & Co. DD 33,718.9 10.8% 16.1% 67.1%FMC Corp. FMC 4,407.6 9.3% 8.1% 40.7%Olin Corp. OLN 1,546.0 12.4% 13.3% 39.7%Penford Corp. PENX 116.6 18.1% 44.3% 185.0%

Specialty Chemicals:Albemarle Corp. ALB 3,892.7 16.7% 22.9% 95.7%Arch Chemicals Inc. ARJ 863.2 11.6% 14.9% 81.8%Chemtura Corporation CEMJ.Q 332.8 11.4% 47.3% 2787.6%Ecolab Inc. ECL 10,378.5 ‐2.0% ‐5.2% 26.5%Ferro Corp. FOE 758.0 14.0% 89.5% 1082.2%HB Fuller Co. FUL 1,135.7 2.6% 11.8% 79.8%International Flavors & Fragrances Inc. IFF 3,779.1 16.2% 26.1% 57.5%Lubrizol Corp. LZ 6,245.3 25.4% 29.2% 172.6%Minerals Technologies Inc. MTX 972.4 ‐4.7% 9.2% 62.3%OM Group Inc. OMG 1,035.3 7.9% 10.9% 75.8%PolyOne Corporation POL 947.9 37.2% 53.7% 344.6%Quaker Chemical Corporation KWR 302.0 32.2% 24.6% 248.4%Stepan Company SCL 556.5 ‐13.3% ‐4.4% 98.1%Valspar Corp. VAL 2,926.4 8.4% 5.5% 46.2%

Industrial Gases:Air Products & Chemicals Inc. APD 15,688.6 ‐8.6% ‐3.7% 33.0%Airgas Inc. ARG 5,263.3 34.7% 33.0% 91.4%Praxair Inc. PX 25,413.7 3.1% 1.4% 22.9%

Paper and Corrugated Packaging:Graphic Packaging Holding Company GPK 1,239.1 4.0% 56.3% 315.8%Greif Inc. GEF 2,516.8 2.5% 0.1% 62.7%International Paper Co. IP 10,741.2 ‐7.4% 11.7% 253.3%MeadWestvaco Corporation MWV 4,378.9 ‐10.6% 14.7% 113.8%Packaging Corp. of America PKG 2,536.5 7.0% 20.8% 90.3%Rock‐Tenn Co. RKT 1,768.8 ‐9.5% ‐2.7% 71.0%Smurfit‐Stone Container Corp. SSCC.Q 66.8 ‐5.4% ‐43.4% 604.4%Sonoco Products Co. SON 3,086.9 5.5% 12.2% 47.4%Temple‐Inland Inc. TIN 2,196.8 ‐2.6% 25.6% 284.1%

Plastics/Films:A. Schulman, Inc. SHLM 645.6 20.3% 24.3% 83.1%AptarGroup, Inc . ATR 2,668.5 10.5% 5.5% 26.6%Intertape Polymer Group Inc. ITP 342.9 17.7% 11.4% 65.7%Myers Industries Inc. MYE 371.4 15.7% ‐2.2% 71.6%RPC Group plc RPC 6.0 20.0% ‐41.1% ‐53.7%Spartech Corp. SEH 361.5 14.7% 9.3% 380.9%Tredegar Corp. TG 575.4 7.3% 16.8% 3.9%

Flexible Packaging:AEP Industries Inc. AEPI 178.2 ‐31.7% ‐34.5% 72.3%Bemis Co. Inc. BMS 3,130.8 ‐2.4% 11.9% 49.5%CCL Industries Inc. CCL.B 916.5 ‐0.5% 27.5% 35.6%Multi‐Color Corp. LABL 146.4 ‐2.0% ‐22.2% ‐3.0%Pactiv Corp. PTV 3,332.2 4.3% ‐3.1% 73.6%Sealed Air Corporation SEE 3,350.4 ‐3.6% 7.5% 53.8%Winpak Ltd. WPK 585.0 1.4% 1.1% 33.9%


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NCA Industrial Growth Universe – Public Company Equity Market Value Analysis

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Analytical Instrumentation & Testing Equipment NASDAQ Composite Index S&P 500 Index

Valuation MetricsRecent Shares Market Enterprise Last Twelve Months

Stock Price Outstanding 52‐Week 52‐Week Capitalization Value EV/ EV/ EV/Company Ticker (3/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA1 EBIT2

Analytical Instrumentation and Testing EquipmentAmetek Inc. AME $41.46 106.7 $41.84 $29.42 $4,424.7 $5,215.0 2.49x 12.1x 14.2xCognex Corp. CGNX 18.49 39.7 19.81 12.41 733.4 558.0 3.18x 228.9x NMElectro Scientific Industries Inc. ESIO 12.81 27.6 14.60 5.71 353.1 201.2 1.87x NM NMESCO Technologies Inc. ESE 31.81 26.4 46.87 29.90 841.1 976.2 1.67x 11.7x 14.5xHEICO Corp. HEI 51.56 26.1 52.11 23.36 1,159.2 1,331.7 2.45x 12.4x 14.5xMeasurement Specialties Inc. MEAS 14.71 14.5 16.23 3.73 213.5 269.8 1.41x 14.7x 69.8xMettler‐Toledo International, Inc. MTD 109.20 33.7 111.45 49.93 3,683.9 3,893.2 2.25x 12.3x 13.8xMTS Systems Corp. MTSC 29.03 16.5 30.92 20.04 479.0 407.1 1.07x 11.6x 17.3xVarian Inc. VARI 51.78 29.1 52.00 23.00 1,504.7 1,294.2 1.62x 13.6x 18.9x

High 3.18x 14.7x 18.9xLow 1.07x 11.6x 13.8x

[1] Cognex Corp. is excluded from the EV/EBITDA calculations. Mean 2.00x 12.6x 15.5x[2] Measurement Specialties Inc . is excluded from the EV/EBIT calculations. Median 1.87x 12.3x 14.5x

Performance Metrics

TTM Financials MarginsTTM Revenue TTM TTM TTM 2010 2011 Gross LTM LTM Debt/

Company Ticker as of: Growth Revenue EBIT EBITDA EBITDA EBITDA Profit EBITDA EBIT EBITDA

Analytical Instrumentation and Testing EquipmentAmetek Inc. AME 12/31/2009 ‐17.1% $2,098.4 $366.1 $431.6 $471.1 $511.2 31.6% 20.6% 17.4% 2.4xCognex Corp. CGNX 12/31/2009 ‐27.6% 175.7 (7.1) 2.4 41.1 52.4 67.9% 1.4% ‐4.1% NAElectro Scientific Industries Inc. ESIO 1/2/2010 ‐58.3% 107.4 (45.4) (33.1) NA NA 33.5% ‐30.8% ‐42.3% NAESCO Technologies Inc. ESE 12/31/2009 ‐6.6% 584.4 67.4 83.7 93.8 109.5 40.6% 14.3% 11.5% 2.0xHEICO Corp. HEI 1/31/2010 ‐6.1% 543.4 91.6 107.4 115.2 131.2 34.5% 19.8% 16.9% 0.4xMeasurement Specialties Inc. MEAS 12/31/2009 ‐14.6% 191.3 3.9 18.3 38.0 39.6 37.9% 9.6% 2.0% 4.4xMettler‐Toledo International, Inc. MTD 12/31/2009 ‐12.4% 1,728.9 282.6 317.1 355.4 380.0 51.4% 18.3% 16.3% 0.9xMTS Systems Corp. MTSC 1/2/2010 ‐18.8% 381.2 23.6 35.0 NA NA 37.2% 9.2% 6.2% 1.2xVarian Inc. VARI 1/1/2010 ‐18.7% 799.7 68.5 95.4 119.8 137.6 43.2% 11.9% 8.6% 0.2x

High 67.9% 20.6% 17.4% 4.4xLow 31.6% (30.8%) (42.3%) 0.2xMean 42.0% 8.2% 3.6% 1.7xMedian 37.9% 11.9% 8.6% 1.2x


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Analytical Instrumentation & Testing Equipment (continued)

First Quarter 2010 News

March 9, 2010 – Bruker Corporation (NasdaqGS: BRKR), a designer and manufacturer of life science and materials research systems, and related products, entered into a definitive asset purchase agreement to acquire certain product lines of Varian, Inc. (NasdaqGS: VARI) that design and manufacture scientific instruments for approximately $37.5 million. January 26, 2010 – AMETEK, Inc. (NYSE: AME), a manufacturer and seller of electronic instruments and electromechanical devices, completed the acquisition of the assets of Sterling Ultra Precision, Inc., a distributor of ultra‐precision machining systems for the production of contact lenses and intra‐ocular lenses. The financial terms of the transaction were not disclosed. January 7, 2010 – Mettler‐Toledo International, Inc. (NYSE: MTD), a manufacturer and supplier of precision instruments and services worldwide, completed the acquisition of the assets of Anachem, Ltd., a distributor of liquid handling products, plastics, and consumables, from Diploma PLC (LSE: DPLM) for approximately $14 million.


10

Analytical Instrumentation & Testing Equipment (continued)

Benchmarking

Ametek Inc. $2,098.4 HEICO Corp. ‐6.1%Mettler‐Toledo International, Inc. 1,728.9 ESCO Technologies Inc. ‐6.6%Varian, Inc. 799.7 Mettler‐Toledo International, Inc. ‐12.4%ESCO Technologies Inc. 584.4 Measurement Specialties Inc. ‐14.6%HEICO Corp. 543.4 Ametek Inc. ‐17.1%MTS Systems Corp. 381.2 Varian, Inc. ‐18.7%Measurement Specialties Inc. 191.3 MTS Systems Corp. ‐18.8%Cognex Corp. 175.7 Cognex Corp. ‐27.6%Electro Scientific Industries Inc. 107.4 Electro Scientific Industries Inc. ‐58.3%

Ametek Inc. 17.4% Ametek Inc. 20.6%HEICO Corp. 16.9% HEICO Corp. 19.8%Mettler‐Toledo International, Inc. 16.3% Mettler‐Toledo International, Inc. 18.3%ESCO Technologies Inc. 11.5% ESCO Technologies Inc. 14.3%Varian, Inc. 8.6% Varian, Inc. 11.9%MTS Systems Corp. 6.2% Measurement Specialties Inc. 9.6%Measurement Specialties Inc. 2.0% MTS Systems Corp. 9.2%Cognex Corp. ‐4.1% Cognex Corp. 1.4%Electro Scientific Industries Inc. ‐42.3% Electro Scientific Industries Inc. ‐30.8%

Electro Scientific Industries Inc. 0.0% Electro Scientific Industries Inc. 0.0xCognex Corp. 0.0% Cognex Corp. 0.0xVarian, Inc. 2.8% Varian, Inc. 0.2xHEICO Corp. 7.2% HEICO Corp. 0.4xMTS Systems Corp. 17.1% Mettler‐Toledo International, Inc. 0.9xESCO Technologies Inc. 24.7% MTS Systems Corp. 1.2xMettler‐Toledo International, Inc. 29.3% ESCO Technologies Inc. 2.0xMeasurement Specialties Inc. 32.5% Ametek Inc. 2.4xAmetek Inc. 39.9% Measurement Specialties Inc. 4.4x

SIZE HISTORICAL GROWTH(Revenue in $mm) (Annual Revenue)

LEVERAGE LEVERAGE(Debt/Capitalization) (Total Debt/EBITDA)

PROFITABILITY PROFITABILITY(EBIT Margin %) (EBITDA Margin %)


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Electronics & Components NASDAQ Composite Index S&P 500 Index



Electronics and ComponentsBaldor Electric Co. BEZ $37.40 46.8 $38.13 $14.40 $1,749.4 $2,919.2 1.92x 11.6x 16.0xBel Fuse Inc. BELF.B 20.15 11.6 24.04 12.44 231.0 106.8 0.58x 103.9x NMColeman Cable, Inc. CCIX 4.95 16.9 5.08 1.93 83.6 312.9 0.62x 6.3x 12.0xCooper Industries Ltd. CBE 47.94 167.2 48.00 24.71 8,014.0 8,566.8 1.69x 11.9x 14.9xEaton Corporation ETN 75.77 166.5 76.94 36.04 12,618.8 15,353.8 1.29x 12.0x 21.7xLittelfuse Inc. LFUS 38.01 21.9 40.18 10.86 831.7 824.6 1.92x 14.2x 38.3xMolex Inc. MOLX 20.86 173.8 22.71 13.28 3,374.7 3,169.8 1.28x 10.2x 50.2xTechnitrol Inc. TNL 5.28 41.2 10.47 1.58 217.8 320.1 0.80x 10.8x 28.9xThomas & Betts Corp. TNB 39.24 52.7 39.74 23.17 2,066.3 2,254.9 1.19x 8.2x 11.2x

High 1.92x 14.2x 28.9xLow 0.58x 6.3x 11.2x

[1] Bel Fuse, Inc. is excluded from the EV/EBITDA calculations. Mean 1.25x 10.7x 17.5x[2] Littlefuse, Inc. and Molex, Inc. are excluded from the EV/EBIT calculations. Median 1.28x 11.2x 15.5x

Performance Metrics



Electronics and ComponentsBaldor Electric Co. BEZ 1/2/2010 ‐22.0% $1,524.1 $182.6 $252.3 $287.6 $328.6 29.4% 16.6% 12.0% 4.7xBel Fuse Inc. BELF.B 12/31/2009 ‐29.3% 182.8 (5.8) 1.0 17.6 23.7 14.0% 0.6% ‐3.1% NAColeman Cable, Inc. CCIX 12/31/2009 ‐48.2% 504.2 26.0 49.4 56.9 65.6 15.0% 9.8% 5.2% 4.8xCooper Industries Ltd. CBE 12/31/2009 ‐22.3% 5,069.6 574.0 719.6 813.6 909.4 31.3% 14.2% 11.3% 1.3xEaton Corporation ETN 12/31/2009 ‐22.8% 11,873.0 708.0 1,281.0 1,546.4 1,821.4 28.3% 10.8% 6.0% 2.7xLittelfuse Inc. LFUS 1/2/2010 ‐19.0% 430.1 21.5 58.1 110.4 122.8 30.1% 13.5% 5.0% 1.1xMolex Inc. MOLX 12/31/2009 ‐22.5% 2,479.7 63.1 309.9 487.6 604.8 25.6% 12.5% 2.5% 0.9xTechnitrol Inc. TNL 12/25/2009 ‐36.3% 398.8 11.1 29.5 38.6 49.0 25.3% 7.4% 2.8% 4.4xThomas & Betts Corp. TNB 12/31/2009 ‐23.2% 1,898.7 201.0 276.1 296.0 331.7 30.2% 14.5% 10.6% 2.4x

High 31.3% 16.6% 12.0% 4.8xLow 14.0% 0.6% (3.1%) 0.9xMean 25.5% 11.1% 5.8% 2.8xMedian 28.3% 12.5% 5.2% 2.6x


12

Electronics & Components (continued)


February 23, 2010 – Thomas & Betts Corporation (NYSE: TNB), a designer and manufacturer of electrical components for industrial, construction, utility, and communications markets, completed the acquisition of PMA AG, a developer and manufacturer of polyamide cable protection systems, for approximately $114 million. February 3, 2010 – Coleman Cable, Inc. (NasdaqGM: CCIX), a designer, manufacturer, and supplier of electrical wire and cable products, completed a private placement of senior notes due 2018 for gross proceeds of $235 million. The use of proceeds is to fund the repurchase, repayment or other discharge of all of its outstanding 9.875% senior notes due 2012. January 29, 2010 – Bel Fuse, Inc. (NasdaqGS: BELF.B), a designer, manufacturer, and seller of products used in networking, telecommunications, high speed data transmission, and consumer electronics, completed the acquisition of Cinch Connectors, Inc., a designer, manufacturer, and supplier of electrical connectors, harnesses, cables, and assemblies, from SAFRAN USA, Inc. for approximately $37.5 million. January 26, 2010 – Thomas & Betts Corp. (NYSE: TNB) completed the acquisition of JT Packard & Associates, Inc., a service provider for network‐critical power equipment, from S.R. Bray Corporation for approximately $22 million.


13

Electronics & Components (continued)

Benchmarking

Eaton Corporation $11,873.0 Littelfuse Inc. ‐19.0%Cooper Industries plc 5,069.6 Baldor Electric Co. ‐22.0%Molex Inc. 2,479.7 Cooper Industries plc ‐22.3%Thomas & Betts Corp. 1,898.7 Molex Inc. ‐22.5%Baldor Electric Co. 1,524.1 Eaton Corporation ‐22.8%Coleman Cable, Inc. 504.2 Thomas & Betts Corp. ‐23.2%Littelfuse Inc. 430.1 Bel Fuse Inc. ‐29.3%Technitrol Inc. 398.8 Technitrol Inc. ‐36.3%Bel Fuse Inc. 182.8 Coleman Cable, Inc. ‐48.2%

Baldor Electric Co. 12.0% Baldor Electric Co. 16.6%Cooper Industries plc 11.3% Thomas & Betts Corp. 14.5%Thomas & Betts Corp. 10.6% Cooper Industries plc 14.2%Eaton Corporation 6.0% Littelfuse Inc. 13.5%Coleman Cable, Inc. 5.2% Molex Inc. 12.5%Littelfuse Inc. 5.0% Eaton Corporation 10.8%Technitrol Inc. 2.8% Coleman Cable, Inc. 9.8%Molex Inc. 2.5% Technitrol Inc. 7.4%Bel Fuse Inc. ‐3.1% Bel Fuse Inc. 0.6%

Bel Fuse Inc. 0.0% Bel Fuse Inc. 0.0xMolex Inc. 12.3% Molex Inc. 0.9xLittelfuse Inc. 14.3% Littelfuse Inc. 1.1xCooper Industries plc 24.0% Cooper Industries plc 1.3xThomas & Betts Corp. 33.2% Thomas & Betts Corp. 2.4xEaton Corporation 33.7% Eaton Corporation 2.7xBaldor Electric Co. 56.2% Technitrol Inc. 4.4xTechnitrol Inc. 66.1% Baldor Electric Co. 4.7xColeman Cable, Inc. 97.8% Coleman Cable, Inc. 4.8x





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Precision Machine Products, Tooling & Stampings NASDAQ Composite Index S&P 500 Index



Precision Machine Products, Tooling and StampingsCurtiss‐Wright Corp. CW $34.80 45.8 $36.67 $27.33 $1,594.5 $1,994.6 1.10x 7.9x 11.4xHardinge Inc. HDNG 9.00 11.6 9.60 2.75 104.5 84.9 0.40x NM NMHurco Companies Inc. HURC 16.83 6.4 20.45 10.32 108.4 76.0 0.91x NM NMKaydon Corporation KDN 37.60 33.5 38.96 26.55 1,261.0 998.6 2.26x 10.3x 13.7xKennametal Inc. KMT 28.12 81.5 30.64 15.29 2,293.0 2,557.2 1.54x 23.9x 209.2xRBC Bearings Inc. ROLL 31.87 21.7 32.22 14.76 692.1 706.7 2.54x 14.3x 18.7xShiloh Industries Inc. SHLO 5.65 16.5 7.25 1.61 93.3 146.7 0.48x 9.9x NMTimken Co. TKR 30.01 97.1 30.69 12.53 2,913.3 2,681.5 0.85x 8.8x 22.1x

High 2.54x 14.3x 22.1xLow 0.40x 7.9x 11.4x

[1] Kennametal, Inc . is excluded from the EV/EBITDA calculations. Mean 1.26x 10.2x 16.5x[2] Kennametal, Inc . is excluded from the EV/EBIT calculations. Median 1.01x 9.9x 16.2x

Performance Metrics



Precision Machine Products, Tooling and StampingsCurtiss‐Wright Corp. CW 12/31/2009 ‐1.1% $1,809.7 $174.9 $251.4 $257.3 $285.1 33.0% 13.9% 9.7% 1.9xHardinge Inc. HDNG 12/31/2009 ‐38.0% 214.1 (18.5) (10.0) NA NA 21.4% ‐4.7% ‐8.6% NMHurco Companies Inc. HURC 1/31/2010 ‐56.5% 83.3 (7.3) (5.2) NA NA 25.5% ‐6.2% ‐8.8% NAKaydon Corporation KDN 12/31/2009 ‐15.6% 441.1 73.1 97.3 105.8 123.5 32.6% 22.0% 16.6% NAKennametal Inc. KMT 12/31/2009 ‐33.9% 1,662.7 12.2 107.2 197.9 305.2 28.2% 6.4% 0.7% 3.2xRBC Bearings Inc. ROLL 12/26/2009 ‐23.5% 278.7 37.9 49.4 64.1 74.9 31.7% 17.7% 13.6% 1.1xShiloh Industries Inc. SHLO 1/31/2010 ‐30.2% 304.3 (14.0) 14.8 33.1 39.3 1.4% 4.8% ‐4.6% 3.7xTimken Co. TKR 12/31/2009 ‐37.7% 3,141.6 121.1 304.8 405.0 514.5 18.8% 9.7% 3.9% 1.7x



15

Precision Machine Products, Tooling & Stampings (continued)


March 31, 2010 – Hardinge Inc. (NasdaqGS: HDNG), a designer, manufacturer, and distributor of computer‐numerically controlled cutting lathes, machining centers, grinding machines, collets, chucks, index fixtures, and other industrial products, entered into a definitive agreement to acquire the assets of Jones & Shipman Precision Limited, a supplier of cylindrical, surface, and creep feed grinding machines, from Precision Technologies Group Ltd. for approximately $3 million. February 11, 2010 – Corporate Property Associates 17 – Global, Inc., a fund of W.P. Carey & Co., LLC (NYSE: WPC) completed the acquisition of two manufacturing facilities in Cleveland and Cincinnati, Ohio from Curtiss‐Wright Corp. (NYSE: CW), a designer and manufacturer of precision components and systems, for approximately $13.8 million.


16


(continued)

Benchmarking

Timken Co. $3,141.6 Curtiss‐Wright Corp. ‐1.1%Curtiss‐Wright Corp. 1,809.7 Kaydon Corporation ‐15.6%Kennametal Inc. 1,662.7 RBC Bearings Inc. ‐23.5%Kaydon Corporation 441.1 Shiloh Industries Inc. ‐30.2%Shiloh Industries Inc. 304.3 Kennametal Inc. ‐33.9%RBC Bearings Inc. 278.7 Timken Co. ‐37.7%Hardinge Inc. 214.1 Hardinge Inc. ‐38.0%Hurco Companies Inc. 83.3 Hurco Companies Inc. ‐56.5%

Kaydon Corporation 16.6% Kaydon Corporation 22.0%RBC Bearings Inc. 13.6% RBC Bearings Inc. 17.7%Curtiss‐Wright Corp. 9.7% Curtiss‐Wright Corp. 13.9%Timken Co. 3.9% Timken Co. 9.7%Kennametal Inc. 0.7% Kennametal Inc. 6.4%Shiloh Industries Inc. ‐4.6% Shiloh Industries Inc. 4.8%Hardinge Inc. ‐8.6% Hardinge Inc. ‐4.7%Hurco Companies Inc. ‐8.8% Hurco Companies Inc. ‐6.2%

Hurco Companies Inc. 0.0% Hurco Companies Inc. 0.0xKaydon Corporation 0.0% Kaydon Corporation 0.0xHardinge Inc. 3.0% RBC Bearings Inc. 1.1xRBC Bearings Inc. 16.7% Timken Co. 1.7xKennametal Inc. 19.5% Curtiss‐Wright Corp. 1.9xTimken Co. 24.3% Kennametal Inc. 3.2xCurtiss‐Wright Corp. 31.2% Shiloh Industries Inc. 3.7xShiloh Industries Inc. 36.1% Hardinge Inc. NM





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Metals Processors Tube and Pipe Producers NASDAQ Composite Index S&P 500 Index



Metals ProcessorsAllegheny Technologies Inc. ATI $53.99 98.2 $56.23 $21.22 $5,301.8 $5,741.5 1.88x 27.2x 61.9xAM Castle & Co. CAS 13.08 22.9 14.41 8.25 299.6 360.5 0.44x NM NMCommercial Metals Co. CMC 15.06 112.9 21.29 10.89 1,700.2 2,739.2 0.47x 65.7x NMReliance Steel & Aluminum Co. RS 49.23 73.8 50.60 24.98 3,633.7 4,532.0 0.85x 12.3x 18.1xRussel Metals Inc. TSX:RUS 20.23 59.7 20.40 9.90 1,207.7 1,190.2 0.60x NM NMSchnitzer Steel Industries Inc. SCHN 52.53 27.8 63.98 29.39 1,458.5 1,612.1 0.88x 25.6x 1143.4xSims Metal Management Limited ASX:SGM 21.66 203.5 29.15 16.90 4,408.7 4,184.7 0.65x 34.5x NMWorthington Industries, Inc. WOR 17.29 79.2 17.97 7.60 1,368.9 1,511.8 0.85x 23.7x NM

Tube and Pipe ProducersAK Steel Holding Corp. AKS 22.86 109.9 26.75 6.81 2,511.5 2,655.6 0.65x 18.1x NMNorthwest Pipe Co. NWPX 21.85 9.2 41.98 19.44 201.8 283.6 0.73x 5.9x 6.5xSSAB Svenskt Stål AB SSAB A 129.80 323.9 134.30 62.50 40,998.8 56,383.8 1.89x 194.4x NMSteel Dynamics Inc. STLD 17.47 216.3 20.47 8.18 3,779.4 6,008.1 1.52x 14.2x 29.6xSynalloy Corp. SYNL 8.12 6.3 10.49 5.25 51.0 36.9 0.36x 12.2x 52.5xTenaris SA CM:TEN 15.98 1,180.5 17.55 7.43 18,865.0 18,832.1 2.31x 8.1x 10.4xUnited States Steel Corp. X 63.52 143.4 66.45 20.17 9,106.9 11,578.9 1.04x NM NMWolverine Tube Inc. WLVT 0.05 40.6 0.24 0.03 1.8 142.0 0.30x NM NM

High 2.31x 27.2x 29.6xLow 0.30x 5.9x 6.5x

[1] Commercial Metals Co., Sims Metal, and SSAB Svenskt are excluded from the EV/EBITDA calculations. Mean 0.96x 16.4x 16.2x[2] Allegheny Technologies, Schnitzer Steel, and Synalloy Corp. are excluded from the EV/EBIT calculations. Median 0.79x 14.2x 14.2x


18

Metals (continued)

Performance MetricsTTM Financials Margins

TTM Revenue TTM TTM TTM 2010 2011 Gross LTM LTM Debt/Company Ticker as of: Growth Revenue EBIT EBITDA EBITDA EBITDA Profit EBITDA EBIT EBITDA

Metals ProcessorsAllegheny Technologies Inc. ATI 12/31/2009 ‐42.5% $3,054.9 $92.7 $210.8 $449.9 $674.9 13.4% 6.9% 3.0% 5.1xAM Castle & Co. CAS 12/31/2009 ‐45.9% 812.6 (35.8) (14.5) 30.0 57.1 11.3% ‐1.8% ‐4.4% NMCommercial Metals Company CMC 2/28/2010 ‐42.5% 5,778.4 (122.8) 41.7 112.8 501.0 9.1% 0.7% ‐2.1% 32.0xReliance Steel & Aluminum Co. RS 12/31/2009 ‐39.0% 5,318.1 250.4 369.3 570.6 717.2 26.3% 6.9% 4.7% 2.5xRussel Metals Inc. TSX:RUS 12/31/2009 ‐41.4% 1,882.4 (95.6) (71.8) 149.4 178.3 8.3% ‐3.8% ‐5.1% NMSchnitzer Steel Industries Inc. SCHN 11/30/2009 ‐48.1% 1,822.5 1.4 62.9 166.9 242.2 9.9% 3.5% 0.1% 2.7xSims Metal Management Limited ASX:SGM 12/31/2009 ‐38.6% 5,791.3 (37.4) 108.7 291.4 516.9 18.2% 1.9% ‐0.6% 0.01xWorthington Industries, Inc. WOR 2/28/2010 ‐41.0% 1,788.2 (0.4) 63.8 141.7 178.8 11.5% 3.6% 0.0% 3.5x

Tube and Pipe ProducersAK Steel Holding Corp. AKS 12/31/2009 ‐46.7% 4,076.8 (70.1) 146.6 510.3 698.1 8.0% 3.6% ‐1.7% 4.1xNorthwest Pipe Co. NWPX 6/30/2009 ‐1.6% 389.9 43.3 48.3 27.7 34.3 19.0% 12.4% 11.1% 1.7xSSAB AB SSAB A 12/31/2009 ‐45.1% 4,172.4 (309.9) 40.6 NA NA 2.7% 1.0% ‐7.4% 65.1xSteel Dynamics Inc. STLD 12/31/2009 ‐51.0% 3,958.8 202.8 424.3 876.0 1,137.9 12.2% 10.7% 5.1% 5.2xSynalloy Corp. SYNL 1/2/2010 ‐38.0% 103.6 0.7 3.0 8.9 10.6 9.2% 2.9% 0.7% NATenaris SA CM:TEN 12/31/2009 ‐32.0% 8,149.3 1,813.6 2,318.4 2,545.9 3,297.0 40.4% 28.4% 22.3% 0.6xUnited States Steel Corp. X 12/31/2009 ‐53.3% 11,082.0 (1,717.0) (1,056.0) 1,019.4 2,150.7 ‐4.2% ‐9.5% ‐15.5% NMWolverine Tube Inc. WLVT 10/4/2009 ‐46.9% 478.9 (17.8) (8.8) NA NA 2.2% ‐1.8% ‐3.7% NM

High 40.4% 28.4% 22.3% 65.1xLow (4.2%) (9.5%) (15.5%) 0.01xMean 12.3% 4.1% 0.4% 11.1xMedian 10.6% 3.2% (0.3%) 3.5x


March 16, 2010 – United States Steel Corp. (NYSE: X), a producer and seller of steel products, completed a fixed‐income offering of 7.375% senior notes due 2020 for approximately $600 million. The use of proceeds is for general corporate purposes and working capital. March 11, 2010 – Steel Dynamics, Inc. (NasdaqGS: STLD), a manufacturer and seller of steel products, completed a private placement of 7.625% senior notes due 2020 for gross proceeds of $350 million. The use of proceeds is to repay amounts outstanding under its senior secured revolving credit facility and for general corporate purposes, including debt repayment, capital expenditures, working capital, and acquisitions. January 29, 2010 – Commercial Metals Company (NYSE: CMC), a recycler, manufacturer, and distributor of steel and metal products, registered 10.0 million shares of common stock at $14.05 per share issuable pursuant to the 2006 Long‐Term Equity Incentive Plan and the 2010 Employee Stock Purchase Plan.


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Metals (continued)

Benchmarking

Metals Processors Metals ProcessorsSims Metal Management Limited $6,455.3 Schnitzer Steel Industries Inc. ‐37.4%Commercial Metals Company 5,778.4 Sims Metal Management Limited ‐38.6%Reliance Steel & Aluminum Co. 5,318.1 Reliance Steel & Aluminum Co. ‐39.0%Allegheny Technologies Inc. 3,054.9 Worthington Industries, Inc. ‐41.0%Schnitzer Steel Industries Inc. 1,980.2 Russel Metals Inc. ‐41.4%Russel Metals Inc. 1,971.8 Allegheny Technologies Inc. ‐42.5%Worthington Industries, Inc. 1,788.2 Commercial Metals Company ‐42.5%AM Castle & Co. 812.6 AM Castle & Co. ‐45.9%

Tube and Pipe Producers Tube and Pipe ProducersSSAB AB 29,838.0 Northwest Pipe Co. ‐1.6%United States Steel Corp. 11,082.0 Tenaris SA ‐32.0%Tenaris SA 8,149.3 Synalloy Corp. ‐38.0%AK Steel Holding Corp. 4,076.8 SSAB AB ‐45.1%Steel Dynamics Inc. 3,958.8 AK Steel Holding Corp. ‐46.7%Wolverine Tube Inc. 478.9 Wolverine Tube Inc. ‐46.9%Northwest Pipe Co. 389.9 Steel Dynamics Inc. ‐51.0%Synalloy Corp. 103.6 United States Steel Corp. ‐53.3%

Metals Processors Metals ProcessorsReliance Steel & Aluminum Co. 4.7% Reliance Steel & Aluminum Co. 6.9%Allegheny Technologies Inc. 3.0% Allegheny Technologies Inc. 6.9%Schnitzer Steel Industries Inc. 2.2% Schnitzer Steel Industries Inc. 5.3%Worthington Industries, Inc. 0.0% Worthington Industries, Inc. 3.6%Sims Metal Management Limited ‐0.6% Sims Metal Management Limited 1.9%Commercial Metals Company ‐2.1% Commercial Metals Company 0.7%AM Castle & Co. ‐4.4% AM Castle & Co. ‐1.8%Russel Metals Inc. ‐5.1% Russel Metals Inc. ‐3.8%

Tube and Pipe Producers Tube and Pipe ProducersTenaris SA 22.3% Tenaris SA 28.4%Northwest Pipe Co. 11.1% Northwest Pipe Co. 12.4%Steel Dynamics Inc. 5.1% Steel Dynamics Inc. 10.7%Synalloy Corp. 0.7% AK Steel Holding Corp. 3.6%AK Steel Holding Corp. ‐1.7% Synalloy Corp. 2.9%Wolverine Tube Inc. ‐3.7% SSAB AB 1.0%SSAB AB ‐7.4% Wolverine Tube Inc. ‐1.8%United States Steel Corp. ‐15.5% United States Steel Corp. ‐9.5%

Metals Processors Metals ProcessorsSims Metal Management Limited 0.0% Sims Metal Management Limited 0.0xSchnitzer Steel Industries Inc. 9.8% Schnitzer Steel Industries Inc. 1.0xAM Castle & Co. 21.9% Reliance Steel & Aluminum Co. 2.5xWorthington Industries, Inc. 23.7% Worthington Industries, Inc. 3.6xReliance Steel & Aluminum Co. 26.5% Allegheny Technologies Inc. 5.1xRussel Metals Inc. 30.1% Commercial Metals Company 32.0xAllegheny Technologies Inc. 33.9% AM Castle & Co. NMCommercial Metals Company 50.4% Russel Metals Inc. NM

Tube and Pipe Producers Tube and Pipe ProducersSynalloy Corp. 0.0% Synalloy Corp. 0.0xTenaris SA 13.0% Tenaris SA 0.6xNorthwest Pipe Co. 21.6% Northwest Pipe Co. 1.7xSSAB AB 37.8% AK Steel Holding Corp. 4.1xUnited States Steel Corp. 40.5% Steel Dynamics Inc. 5.2xAK Steel Holding Corp. 40.8% SSAB AB 65.1xSteel Dynamics Inc. 52.6% United States Steel Corp. NMWolverine Tube Inc. 140.2% Wolverine Tube Inc. NM





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Resource Recovery & Waste Management NASDAQ Composite Index S&P 500 Index



Resource Recovery and Waste ManagementAmerican Ecology Corp. ECOL 16.10 18.3 20.42 13.59 295.0 262.2 1.98x 8.7x 11.7xCasella Waste Systems Inc. CWST 5.03 25.9 5.30 1.43 130.3 701.8 1.37x 6.1x 17.8xCECO Environmental Corp. CECE 3.57 14.3 4.51 2.63 51.1 63.2 0.45x 16.6x 49.3xClean Harbors Inc. CLH 55.56 26.2 65.79 45.71 1,458.4 1,524.0 1.42x 10.0x 17.5xHeritage‐Crystal Clean, Inc HCCI 11.30 10.7 13.80 7.00 121.1 120.0 1.22x 16.9x 36.6xRepublic Services Inc. RSG 29.02 381.0 29.82 16.31 11,056.1 17,973.3 2.19x 7.1x 11.5xWaste Connections Inc. WCN 33.96 77.6 35.37 23.99 2,635.6 3,522.2 2.96x 9.7x 15.0xWaste Management, Inc. WM 34.43 484.5 35.00 25.05 16,679.9 24,705.9 2.10x 7.8x 12.2xWaste Services Inc. WSII 9.89 46.3 10.48 4.15 457.4 855.8 1.97x 8.7x 15.8xWCA Waste Corporation WCAA 5.09 20.2 5.25 1.46 102.8 326.3 1.68x 6.3x 13.0x

High 2.96x 10.0x 17.8xLow 0.45x 6.1x 11.5x

[1] CECO Environmental and Heritage‐Crystal Clean, Inc. are excluded from the EV/EBITDA calculations. Mean 1.73x 8.0x 14.3x[2] CECO Environmental and Heritage‐Crystal Clean, Inc. are excluded from the EV/EBIT calculations. Median 1.83x 8.2x 14.0x

Performance Metrics



Resource Recovery and Waste ManagementAmerican Ecology Corp. ECOL 12/31/2009 ‐24.6% $132.5 $22.4 $30.2 $27.1 $31.7 27.1% 22.8% 16.9% 0.001xCasella Waste Systems Inc. CWST 1/31/2010 ‐11.0% 511.2 39.4 115.3 120.1 128.9 33.8% 22.6% 7.7% 5.0xCECO Environmental Corp. CECE 12/31/2009 ‐24.2% 139.0 1.3 3.8 9.1 NA 22.3% 2.7% 0.9% 3.6xClean Harbors, Inc. CLH 12/31/2009 4.2% 1,074.2 87.1 152.0 227.1 252.1 29.9% 14.1% 8.1% 2.0xHeritage‐Crystal Clean, Inc HCCI 1/2/2010 ‐9.0% 98.4 3.3 7.1 NA 11.3 73.5% 7.2% 3.3% NARepublic Services Inc. RSG 12/31/2009 122.5% 8,199.1 1,557.6 2,516.1 2,528.6 2,681.1 40.9% 30.7% 19.0% 2.8xWaste Connections Inc. WCN 12/31/2009 13.5% 1,191.4 234.2 364.9 405.2 434.7 41.9% 30.6% 19.7% 2.4xWaste Management, Inc. WM 12/31/2009 ‐11.9% 11,791.0 2,020.0 3,186.0 3,401.9 3,556.6 38.6% 27.0% 17.1% 2.8xWaste Services Inc. WSII 12/31/2009 ‐8.1% 434.5 54.1 98.7 122.0 131.0 36.1% 22.7% 12.5% 4.1xWCA Waste Corporation WCAA 12/31/2009 ‐6.7% 194.1 25.0 51.4 55.8 NA 32.9% 26.5% 12.9% 4.4x

High 73.5% 30.7% 19.7% 5.0xLow 22.3% 2.7% 0.9% 0.001xMean 37.7% 20.7% 11.8% 3.0xMedian 35.0% 22.8% 12.7% 2.8x


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Resource Recovery & Waste Management (continued)

First Quarter 2010 News March 1, 2010 – Republic Services, Inc. (NYSE: RSG), a provider of nonhazardous solid waste collection, transfer, and disposal services, announced a private placement of 5% senior notes due March 1, 2020 for proceeds of $850 million and 6.2% senior notes due March 1, 2040 for proceeds of $650 million for total gross proceeds of $1.5 billion. The use of proceeds is to finance the call of its 6.125% senior notes due 2014 on March 8 and as cash on hand until the call of its 7.25% senior notes due 2015 on March 31, to reduce balances outstanding under its revolving credit facility, and for general corporate purposes. February 2, 2010 – Action Carting Environmental Services, Inc., a provider of solid waste collection and environmental services for industrial and commercial businesses in New York, entered into a definitive agreement to acquire recycling and recovery assets in New York City from Republic Services, Inc. (NYSE: RSG). The financial terms of the transaction were not disclosed. January 26, 2010 – Waste Services, Inc. (NasdaqGM: WSII), a provider of collection, transfer, landfill disposal, and recycling services for commercial, industrial, and residential customers, registered 4,328,125 shares of common stock at $9.31 per share issuable pursuant to the Company’s 2007 Equity and Performance Incentive Plan.


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Resource Recovery & Waste Management (continued)

Benchmarking

Waste Management, Inc. $11,791.0 Republic Services Inc. 122.5%Republic Services Inc. 8,199.1 Waste Connections Inc. 13.5%Waste Connections Inc. 1,191.4 Clean Harbors, Inc. 4.2%Clean Harbors, Inc. 1,074.2 WCA Waste Corporation ‐6.7%Casella Waste Systems Inc. 511.2 Waste Services Inc. ‐8.1%Waste Services Inc. 434.5 Heritage‐Crystal Clean, Inc ‐9.0%WCA Waste Corporation 194.1 Casella Waste Systems Inc. ‐11.0%CECO Environmental Corp. 139.0 Waste Management, Inc. ‐11.9%US Ecology, Inc. 132.5 CECO Environmental Corp. ‐24.2%Heritage‐Crystal Clean, Inc 98.4 US Ecology, Inc. ‐24.6%

Waste Connections Inc. 19.7% Republic Services Inc. 30.7%Republic Services Inc. 19.0% Waste Connections Inc. 30.6%Waste Management, Inc. 17.1% Waste Management, Inc. 27.0%US Ecology, Inc. 16.9% WCA Waste Corporation 26.5%WCA Waste Corporation 12.9% US Ecology, Inc. 22.8%Waste Services Inc. 12.5% Waste Services Inc. 22.7%Clean Harbors, Inc. 8.1% Casella Waste Systems Inc. 22.6%Casella Waste Systems Inc. 7.7% Clean Harbors, Inc. 14.1%Heritage‐Crystal Clean, Inc 3.3% Heritage‐Crystal Clean, Inc 7.2%CECO Environmental Corp. 0.9% CECO Environmental Corp. 2.7%

Heritage‐Crystal Clean, Inc 0.0% Heritage‐Crystal Clean, Inc 0.0xUS Ecology, Inc. 0.0% US Ecology, Inc. 0.0xCECO Environmental Corp. 29.8% Clean Harbors, Inc. 2.0xClean Harbors, Inc. 32.9% Waste Connections Inc. 2.4xWaste Connections Inc. 39.7% Republic Services Inc. 2.8xRepublic Services Inc. 47.9% Waste Management, Inc. 2.8xWaste Services Inc. 52.8% CECO Environmental Corp. 3.6xWaste Management, Inc. 57.4% Waste Services Inc. 4.1xWCA Waste Corporation 58.7% WCA Waste Corporation 4.4xCasella Waste Systems Inc. 91.3% Casella Waste Systems Inc. 5.0x





23

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Diversified Chemicals Specialty Chemicals Industrial Gases NASDAQ Composite Index S&P 500 Index



Diversified ChemicalsAshland Inc. ASH $52.77 78.1 $54.46 $10.76 $4,119.3 5,307.3 0.65x 6.0x 9.5xCabot Corp. CBT 30.40 65.4 32.23 10.12 1,986.8 2,507.8 1.10x 10.0x 29.9xDow Chemical Co. DOW 29.57 1,150.3 31.66 8.14 34,014.2 58,110.2 1.29x 13.1x 36.0xEastman Chemical Co. EMN 63.68 72.3 64.67 26.14 4,607.2 5,424.2 1.07x 6.8x 10.1xEI DuPont de Nemours & Co. DD 37.24 905.4 39.05 21.62 33,718.9 39,288.9 1.44x 9.3x 14.3xFMC Corp. FMC 60.54 72.8 62.24 40.69 4,407.6 5,031.6 1.78x 8.7x 11.2xOlin Corp. OLN 19.62 78.8 19.94 10.64 1,546.0 1,485.9 0.97x 6.0x 8.4xPenford Corp. PENX 10.25 11.4 12.15 2.96 116.6 186.4 0.71x 47.5x NM

Specialty ChemicalsAlbemarle Corp. ALB 42.63 91.3 43.80 20.99 3,892.7 4,444.3 2.22x 14.3x 21.1xArch Chemicals Inc. ARJ 34.39 25.1 35.57 18.42 863.2 1,007.8 0.72x 7.7x 11.9xChemtura Corporation CEMJ.Q 1.37 242.9 1.71 0.04 332.8 1,539.8 0.61x 5.8x 15.9xEcolab Inc. ECL 43.95 236.1 47.88 34.11 10,378.5 11,280.9 1.91x 10.3x 14.8xFerro Corp. FOE 8.79 86.2 10.46 1.33 758.0 1,192.1 0.72x 8.1x 20.3xHB Fuller Co. FUL 23.21 48.9 24.66 11.90 1,135.7 1,269.3 1.00x 7.6x 10.5xInternational Flavors & Fragrances In IFF 47.67 79.3 48.83 29.49 3,779.1 4,713.4 2.03x 10.6x 12.9xLubrizol Corp. LZ 91.72 68.1 95.23 32.98 6,245.3 6,713.9 1.46x 6.7x 8.0xMinerals Technologies Inc. MTX 51.84 18.8 57.37 31.43 972.4 780.2 0.86x 6.7x 17.4xOM Group Inc. OMG 33.88 30.6 36.50 18.94 1,035.3 724.7 0.83x 7.5x 15.7xPolyone Corp. POL 10.24 92.6 10.65 2.23 947.9 1,134.8 0.55x 7.1x 11.9xQuaker Chemical Corporation KWR 27.11 11.1 27.71 7.60 302.0 349.2 0.77x 8.4x 11.3xStepan Company SCL 55.89 10.0 67.98 26.34 556.5 578.3 0.45x 4.1x 5.5xValspar Corp. VAL 29.48 99.3 29.75 19.21 2,926.4 3,677.6 1.26x 8.7x 10.8x

Industrial GasesAir Products & Chemicals Inc. APD 73.95 212.2 85.44 54.73 15,688.6 19,938.9 2.42x 9.5x 16.0xAirgas Inc. ARG 63.62 82.7 66.06 32.52 5,263.3 6,907.8 1.78x 10.4x 16.0xPraxair Inc. PX 83.00 306.2 86.07 64.50 25,413.7 30,756.7 3.43x 12.6x 19.2x

High 3.43x 14.3x 21.1xLow 0.45x 4.1x 5.5x

[1] Penford Corp. is excluded from the EV/EBITDA calculations. Mean 4.22x 8.6x 13.3x[2] Cabot Corp. and Dow Chemical are excluded from the EV/EBIT calculations. Median 1.07x 8.3x 12.4x


24

Chemicals (continued)

Performance MetricsTTM Financials Margins

TTM Revenue TTM TTM TTM 2010 2011 Gross LTM LTM Debt/Company Ticker as of: Growth Revenue EBIT EBITDA EBITDA EBITDA Profit EBITDA EBIT EBITDA

Diversified ChemicalsAshland Inc. ASH 12/31/2009 ‐3.3% $8,160.0 $560.0 $890.0 $919.7 $936.9 24.3% 10.9% 6.9% 1.8xCabot Corp. CBT 12/31/2009 ‐27.5% 2,270.0 84.0 251.0 375.8 416.3 15.9% 11.1% 3.7% 2.6xThe Dow Chemical Company DOW 12/31/2009 ‐21.8% 44,875.0 1,616.0 4,443.0 6,996.1 8,145.1 13.4% 9.9% 3.6% 5.0xEastman Chemical Co. EMN 12/31/2009 ‐25.0% 5,047.0 537.0 800.0 862.2 948.9 21.3% 15.9% 10.6% 2.0xEI DuPont de Nemours & Co. DD 12/31/2009 ‐14.0% 26,109.0 2,743.0 4,246.0 4,773.6 5,228.3 27.7% 15.6% 10.1% 2.6xFMC Corp. FMC 12/31/2009 ‐9.3% 2,826.2 449.9 577.1 659.9 740.8 31.5% 20.4% 15.9% 1.1xOlin Corp. OLN 12/31/2009 ‐13.2% 1,531.5 176.1 247.8 214.2 262.6 20.2% 16.2% 11.5% 1.6xPenford Corp. PENX 11/30/2009 28.8% 263.0 (10.7) 3.9 31.8 34.7 6.7% 1.5% ‐4.1% 22.7x

Specialty ChemicalsAlbemarle Corp. ALB 12/31/2009 ‐18.7% 2,005.4 210.3 310.8 418.4 465.9 24.1% 15.5% 10.5% 2.6xArch Chemicals Inc. ARJ 12/31/2009 ‐6.7% 1,391.9 84.5 131.2 144.8 152.0 29.6% 9.4% 6.1% 2.2xChemtura Corporation CEMJ.Q 12/31/2009 ‐28.3% 2,541.0 97.0 265.0 438.6 NA 23.4% 10.4% 3.8% 5.4xEcolab Inc. ECL 12/31/2009 ‐3.9% 5,900.6 761.0 1,095.3 1,161.9 1,276.1 49.7% 18.6% 12.9% 0.9xFerro Corp. FOE 12/31/2009 ‐26.2% 1,657.6 58.8 147.0 196.8 217.2 19.2% 8.9% 3.5% 2.9xHB Fuller Co. FUL 2/27/2010 ‐6.1% 1,265.5 121.0 167.0 173.4 176.0 31.1% 13.2% 9.6% 1.7xInternational Flavors & Fragrances In IFF 12/31/2009 ‐2.6% 2,326.2 364.9 443.4 476.2 506.5 40.2% 19.1% 15.7% 2.3xLubrizol Corp. LZ 12/31/2009 ‐8.8% 4,586.3 836.6 1,006.9 1,092.0 1,053.0 32.9% 22.0% 18.2% 1.4xMinerals Technologies Inc. MTX 12/31/2009 ‐18.4% 907.3 44.8 117.2 154.8 165.1 17.2% 12.9% 4.9% 0.9xOM Group Inc. OMG 12/31/2009 ‐49.8% 871.7 46.1 96.5 185.6 175.9 20.4% 11.1% 5.3% NAPolyOne Corporation POL 12/31/2009 ‐24.8% 2,060.7 95.7 160.5 182.0 201.0 17.7% 7.8% 4.6% 2.6xQuaker Chemical Corporation KWR 12/31/2009 ‐22.4% 451.5 30.8 41.4 NA NA 34.7% 9.2% 6.8% 1.6xStepan Company SCL 12/31/2009 ‐20.2% 1,276.4 104.9 142.1 NA NA 18.3% 11.1% 8.2% 0.7xValspar Corp. VAL 1/29/2010 ‐13.3% 2,911.9 340.1 424.7 450.2 477.4 35.3% 14.6% 11.7% 2.1x

Industrial GasesAir Products & Chemicals Inc. APD 12/31/2009 ‐19.3% 8,234.4 1,246.3 2,103.1 2,399.9 2,643.0 27.5% 25.5% 15.1% 2.1xAirgas Inc. ARG 12/31/2009 ‐12.8% 3,875.7 432.5 664.0 737.0 804.4 55.4% 17.1% 11.2% 2.5xPraxair Inc. PX 12/31/2009 ‐17.0% 8,956.0 1,603.0 2,449.0 3,054.0 3,346.5 43.8% 27.3% 17.9% 2.1x

High 55.4% 27.3% 18.2% 22.7xLow 6.7% 1.5% (4.1%) 0.7xMean 27.3% 14.2% 9.0% 3.1xMedian 24.3% 13.2% 9.6% 2.1x


March 31, 2010 – Sherwin‐Williams Co. (NYSE: SHW), a manufacturer and distributor of paints, coatings, and related products, completed the acquisition of the industrial wood coatings (IWC) business of Arch Chemicals, Inc. (NYSE: ARJ), a biocides company, for approximately $54 million. March 23, 2010 – Konrad Hornschuch AG, a producer of design films, functional films, and wall, floor, and table coverings, completed the acquisition of OʹSullivan Films, Inc., a developer and manufacturer of films, sheets, laminates, and prints made from flexible vinyl, thermoplastic olefins, and thermoplastic urethanes. The financial terms of the transaction were not disclosed. March 17, 2010 – Eastman Chemical Co. (NYSE: EMN), a manufacturer and seller of chemicals, plastics, and fibers, signed a definitive agreement to acquire Genovique Specialties Corporation, a manufacturer and seller of benzoic acid, benzoate esters, sodium benzoate, and specialty plasticizers, from Arsenal Capital Partners, Inc., a private investment firm. The financial terms of the transaction were not disclosed.


25

Chemicals (continued) March 11, 2010 – HB Fuller Co. (NYSE: FUL), a manufacturer and marketer of adhesives, sealants, paints, and other specialty chemical products worldwide, signed a stock purchase agreement to acquire Revertex Finewaters Sdn Bhd, a manufacturer and supplier of adhesives in Malaysia and internationally, from Revertex (Malaysia) Sdn Bhd. The financial terms of the transaction were not disclosed. March 3, 2010 – Air Products & Chemicals, Inc. (NYSE: APD), a provider of atmospheric gases, process and specialty gases, performance materials, and equipment and services worldwide, acquired a 51% stake in SAGA Gaz Industriels SAS, a manufacturer of industrial gases. The financial terms of the transaction were not disclosed. March 2, 2010 – Bain Capital, LLC, a private investment firm, signed a definitive agreement to acquire Styron Corp., a manufacturer and marketer of styrenes and polycarbonates, from The Dow Chemical Company (NYSE: DOW), a manufacturer and seller of chemicals, plastic materials, agricultural, and other products and services worldwide, for approximately $1.63 billion. February 23, 2010 – Artek Surfin Chemicals Limited, a metal finishing and electroplating company, and Aterian Investment Partners, LLC entered into an agreement to acquire Chemtura Vinyl Additives GmbH from Chemtura Corporation (OTCPK: CEMJ.Q), a manufacturer and seller of specialty chemical solutions and consumer products worldwide, for approximately $16.2 million. January 29, 2010 – OM Group, Inc. (NYSE: OMG), a developer and marketer of specialty chemicals and advanced materials to complex chemical and industrial processes worldwide, completed the acquisition of EaglePicher Technologies, LLC, a designer, manufacturer, and supplier of power solutions for military and commercial customers, from EaglePicher Corporation (OTCPK: EGLP) for approximately $170 million. January 25, 2010 – Arkema S.A. (ENXTPA: AKE), a producer and seller of vinyl products, industrial chemicals, and performance products, completed the acquisition of certain acrylates and latex assets in North America from The Dow Chemical Company (NYSE: DOW) for approximately $50 million. January 15, 2010 – Eastman Chemical Co. (NYSE: EMN) completed the acquisition of Tongxiang Xinglong Fine Chemical Co., Ltd., an owner and operator of a cellulose‐based specialty polymers manufacturing facility. The financial terms of the transaction were not disclosed.


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Benchmarking

Diversified Chemicals Diversified ChemicalsThe Dow Chemical Company $44,875.0 Penford Corporation 28.8%EI DuPont de Nemours & Co. 27,293.0 Ashland Inc. ‐3.3%Ashland Inc. 8,160.0 FMC Corp. ‐9.3%Eastman Chemical Co. 5,047.0 Olin Corp. ‐13.2%FMC Corp. 2,826.2 EI DuPont de Nemours & Co. ‐14.0%Cabot Corp. 2,270.0 The Dow Chemical Company ‐21.8%Olin Corp. 1,531.5 Eastman Chemical Co. ‐25.0%Penford Corporation 263.0 Cabot Corp. ‐27.5%

Specialty Chemicals Specialty ChemicalsEcolab Inc. 5,900.6 International Flavors & Fragrances Inc. ‐2.6%Lubrizol Corporation 4,586.3 Ecolab Inc. ‐3.9%Valspar Corp. 2,911.9 HB Fuller Co. ‐6.1%Chemtura Corporation 2,541.0 Arch Chemicals Inc. ‐6.7%International Flavors & Fragrances Inc. 2,326.2 Lubrizol Corporation ‐8.8%PolyOne Corporation 2,060.7 Valspar Corp. ‐13.3%Albemarle Corp. 2,005.4 Minerals Technologies Inc. ‐18.4%Ferro Corp. 1,657.6 Albemarle Corp. ‐18.7%Arch Chemicals Inc. 1,391.9 Stepan Company ‐20.2%Stepan Company 1,276.4 Quaker Chemical Corporation ‐22.4%HB Fuller Co. 1,265.5 PolyOne Corporation ‐24.8%Minerals Technologies Inc. 907.3 Ferro Corp. ‐26.2%OM Group Inc. 871.7 Chemtura Corporation ‐28.3%Quaker Chemical Corporation 451.5 OM Group Inc. ‐49.8%

Industrial Gases Industrial GasesPraxair Inc. 8,956.0 Airgas Inc. ‐12.8%Air Products & Chemicals Inc. 8,234.4 Praxair Inc. ‐17.0%Airgas Inc. 3,875.7 Air Products & Chemicals Inc. ‐19.3%

Diversified Chemicals Diversified ChemicalsFMC Corp. 15.9% FMC Corp. 20.4%Olin Corp. 11.5% Olin Corp. 16.2%Eastman Chemical Co. 10.6% Eastman Chemical Co. 15.9%EI DuPont de Nemours & Co. 10.1% EI DuPont de Nemours & Co. 15.6%Ashland Inc. 6.9% Cabot Corp. 11.1%Cabot Corp. 3.7% Ashland Inc. 10.9%The Dow Chemical Company 3.6% The Dow Chemical Company 9.9%Penford Corporation ‐4.1% Penford Corporation 1.5%

Specialty Chemicals Specialty ChemicalsLubrizol Corporation 18.2% Lubrizol Corporation 22.0%International Flavors & Fragrances Inc. 15.7% International Flavors & Fragrances Inc. 19.1%Ecolab Inc. 12.9% Ecolab Inc. 18.6%Valspar Corp. 11.7% Albemarle Corp. 15.5%Albemarle Corp. 10.5% Valspar Corp. 14.6%HB Fuller Co. 9.6% HB Fuller Co. 13.2%Stepan Company 8.2% Minerals Technologies Inc. 12.9%Quaker Chemical Corporation 6.8% Stepan Company 11.1%Arch Chemicals Inc. 6.1% OM Group Inc. 11.1%OM Group Inc. 5.3% Chemtura Corporation 10.4%Minerals Technologies Inc. 4.9% Arch Chemicals Inc. 9.4%PolyOne Corporation 4.6% Quaker Chemical Corporation 9.2%Chemtura Corporation 3.8% Ferro Corp. 8.9%Ferro Corp. 3.5% PolyOne Corporation 7.8%

Industrial Gases Industrial GasesPraxair Inc. 17.9% Praxair Inc. 27.3%Air Products & Chemicals Inc. 15.1% Air Products & Chemicals Inc. 25.5%Airgas Inc. 11.2% Airgas Inc. 17.1%

Diversified Chemicals Diversified ChemicalsAshland Inc. 29.8% FMC Corp. 1.1xOlin Corp. 32.6% Olin Corp. 1.6xCabot Corp. 34.3% Ashland Inc. 1.8xFMC Corp. 36.2% Eastman Chemical Co. 2.0xPenford Corporation 50.7% EI DuPont de Nemours & Co. 2.6xThe Dow Chemical Company 51.4% Cabot Corp. 2.6xEastman Chemical Co. 51.6% The Dow Chemical Company 5.0xEI DuPont de Nemours & Co. 59.1% Penford Corporation 22.7x

Specialty Chemicals Specialty ChemicalsOM Group Inc. 0.0% OM Group Inc. 0.0xMinerals Technologies Inc. 12.2% Stepan Company 0.7xStepan Company 26.7% Ecolab Inc. 0.9xQuaker Chemical Corporation 30.1% Minerals Technologies Inc. 0.9xHB Fuller Co. 32.3% Lubrizol Corporation 1.4xEcolab Inc. 32.5% Quaker Chemical Corporation 1.6xValspar Corp. 36.8% HB Fuller Co. 1.7xAlbemarle Corp. 39.3% Valspar Corp. 2.1xLubrizol Corporation 39.5% Arch Chemicals Inc. 2.2xArch Chemicals Inc. 41.8% International Flavors & Fragrances Inc. 2.3xFerro Corp. 43.2% PolyOne Corporation 2.6xPolyOne Corporation 55.1% Albemarle Corp. 2.6xInternational Flavors & Fragrances Inc. 56.7% Ferro Corp. 2.9xChemtura Corporation 89.3% Chemtura Corporation 5.4x

Industrial Gases Industrial GasesAir Products & Chemicals Inc. 46.0% Praxair Inc. 2.1xPraxair Inc. 47.2% Air Products & Chemicals Inc. 2.1xAirgas Inc. 49.1% Airgas Inc. 2.5x

(EBIT Margin %) (EBITDA Margin %)



PROFITABILITY PROFITABILITY


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Paper and Corrugated Packaging Plastics/Films Flexible Packaging NASDAQ Composite Index S&P 500 Index


Stock Price Outstanding 52‐Week 52‐Week Capitalization Value EV/ EV/ EV/Company Ticker (3/31/2010) (mm) High Low ($mm) ($mm) Revenue EBITDA EBIT

Paper and Corrugated PackagingGraphic Packaging Holding Company GPK 3.61 343.2 4.10 0.81 1,239.1 3,925.6 0.96x 6.7x 13.6xGreif Inc. GEF 54.92 47.1 59.32 32.17 2,516.8 3,423.4 1.21x 8.3x 11.2xInternational Paper Co. IP 24.61 436.5 28.61 6.80 10,741.2 18,156.2 0.78x 3.8x 5.4xMeadWestvaco Corporation MWV 25.55 171.4 29.74 11.43 4,378.9 6,049.9 1.00x 7.3x 15.7xPackaging Corp. of America PKG 24.61 103.1 25.83 12.43 2,536.5 2,956.7 1.38x 5.9x 8.4xRock‐Tenn Co. RKT 45.57 38.8 53.20 25.95 1,768.8 3,038.3 1.09x 5.2x 6.8xSmurfit‐Stone Container Corp. SSCC.Q 0.26 256.8 1.11 0.04 66.8 3,259.8 0.58x 3.3x 5.3xSonoco Products Co. SON 30.79 100.3 31.86 20.27 3,086.9 3,496.7 0.97x 7.7x 12.5xTemple‐Inland Inc. TIN 20.43 107.5 23.32 4.95 2,196.8 3,150.8 0.88x 5.2x 7.8x

Plastics/FilmsA. Schulman, Inc. SHLM 24.47 26.4 26.57 11.01 645.6 540.8 0.41x 7.2x 10.3xAptarGroup, Inc. ATR 39.35 67.8 40.85 28.61 2,668.5 2,674.3 1.45x 7.9x 13.0xIntertape Polymer Group Inc. ITP 21.20 16.2 21.75 12.68 342.9 352.6 1.37x 9.3x 11.0xMyers Industries Inc. MYE 10.48 35.4 11.51 6.01 371.4 471.0 0.67x 8.0x 20.8xRPC Group plc RPC 0.23 25.4 1.37 0.20 6.0 7.8 0.37x NM NMSpartech Corp. SEH 11.70 30.9 14.17 2.32 361.5 541.2 0.59x 6.8x 13.7xTredegar Corp. TG 17.08 33.7 18.17 12.61 575.4 485.9 0.75x 5.8x 11.0x

Flexible PackagingAEP Industries Inc. AEPI 26.02 6.9 42.50 14.05 178.2 375.3 0.52x 7.3x 11.9xBemis Co. Inc. BMS 28.72 109.0 31.41 20.34 3,130.8 3,371.9 0.96x 7.3x 11.1xCCL Industries Inc. CCL.B 28.23 32.4 29.89 19.20 916.5 1,264.0 1.05x 6.1x 11.7xMulti‐Color Corp. LABL 11.98 12.2 17.89 10.66 146.4 231.4 0.84x 6.0x 9.1xPactiv Corp. PTV 25.18 132.3 27.71 14.01 3,332.2 4,577.2 1.36x 6.0x 7.9xSealed Air Corp. SEE 21.08 158.9 22.99 13.31 3,350.4 4,317.6 1.02x 6.6x 8.7xWinpak Ltd. WPK 9.00 65.0 9.77 5.80 585.0 537.4 1.06x 5.8x 8.1x

High 1.45x 9.3x 20.8xLow 0.37x 3.3x 5.3xMean 0.93x 6.5x 10.7xMedian 0.96x 6.7x 11.0x


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Plastics & Packaging (continued)

Performance Metrics



Paper and Corrugated PackagingGraphic Packaging Holding Company GPK 12/31/2009 0.4% $4,095.8 $289.5 $585.8 $599.6 $625.2 12.9% 14.3% 7.1% 4.8xGreif Inc. GEF 1/31/2010 ‐21.5% 2,835.6 305.4 412.3 514.6 586.5 20.7% 14.5% 10.8% 2.4xInternational Paper Co. IP 12/31/2009 ‐5.9% 23,366.0 3,367.0 4,839.0 2,954.1 3,341.5 34.9% 20.7% 14.4% 1.9xMeadWestvaco Corporation MWV 12/31/2009 ‐8.9% 6,049.0 385.0 828.0 879.3 908.8 19.3% 13.7% 6.4% 3.0xPackaging Corp. of America PKG 12/31/2009 ‐9.0% 2,147.6 353.3 504.5 400.6 468.4 19.9% 23.5% 16.4% 1.3xRock‐Tenn Co. RKT 12/31/2009 ‐4.9% 2,800.0 447.1 589.8 489.9 525.9 27.7% 21.1% 16.0% 2.2xSmurfit‐Stone Container Corp. SSCC.Q 12/31/2009 ‐20.8% 5,574.0 615.0 979.0 324.6 514.2 9.9% 17.6% 11.0% 3.9xSonoco Products Co. SON 12/31/2009 ‐12.7% 3,597.3 279.6 453.2 506.1 539.5 18.5% 12.6% 7.8% 1.3xTemple‐Inland Inc. TIN 1/2/2010 ‐7.9% 3,577.0 405.0 605.0 428.9 556.1 13.6% 16.9% 11.3% 1.5x

Plastics/FilmsA. Schulman, Inc. SHLM 2/28/2010 ‐21.3% 1,312.2 52.3 75.4 NA NA 16.3% 5.7% 4.0% 1.4xAptarGroup, Inc. ATR 12/31/2009 ‐11.1% 1,841.6 205.9 339.0 374.9 394.7 33.4% 18.4% 11.2% 1.0xIntertape Polymer Group Inc. ITP 6/30/2009 ‐0.9% 361.4 45.1 53.4 NA NA 58.6% 14.8% 12.5% 0.9xMyers Industries Inc. MYE 12/31/2009 ‐13.7% 701.8 22.6 58.9 NA NA 24.3% 8.4% 3.2% 1.8xRPC Group plc RPC 9/30/2009 ‐2.8% 20.8 (3.4) (1.9) NA NA 47.4% ‐8.9% ‐16.4% NMSpartech Corp. SEH 1/30/2010 ‐25.2% 914.6 39.6 79.3 97.8 104.0 12.9% 8.7% 4.3% 2.5xTredegar Corp. TG 12/31/2009 ‐26.6% 648.6 44.2 84.2 79.3 89.8 18.0% 13.0% 6.8% 0.01x

Flexible PackagingAEP Industries Inc. AEPI 1/31/2010 ‐6.1% 721.8 31.5 51.2 NA NA 18.1% 7.1% 4.4% 3.9xBemis Co. Inc. BMS 12/31/2009 ‐7.0% 3,514.6 304.9 464.2 607.0 663.9 19.9% 13.2% 8.7% 2.7xCCL Industries Inc. CCL.B 12/31/2009 0.8% 1,144.6 102.9 198.4 225.6 242.0 21.3% 17.3% 9.0% 2.4xMulti‐Color Corp. LABL 12/31/2009 ‐2.1% 274.6 25.4 38.3 NA NA 18.2% 14.0% 9.2% 2.4xPactiv Corp. PTV 12/31/2009 ‐5.8% 3,360.0 579.0 763.0 767.5 795.1 33.3% 22.7% 17.2% 1.7xSealed Air Corporation SEE 12/31/2009 ‐12.4% 4,242.8 498.7 653.2 721.2 755.4 28.7% 15.4% 11.8% 2.5xWinpak Ltd. WPK 12/27/2009 ‐1.2% 506.0 66.0 92.0 85.9 88.9 30.0% 18.2% 13.0% NA



March 1, 2010 – Bemis Co., Inc. (NYSE: BMS), a manufacturer and seller of flexible packaging products and pressure sensitive materials, completed the acquisition of the Alcan Packaging Food Americas division which comprises 23 flexible packaging facilities in the U.S., Canada, Mexico, Brazil, Argentina, and New Zealand of Alcan Packaging, Inc., a provider of packaging products for food and beverage, pharmaceutical and medical, beauty and personal care, and tobacco industries, for approximately $1.2 billion. March 1, 2010 – A. Schulman, Inc. (NasdaqGS: SHLM), a supplier of plastic compounds and resins to consumer products, industrial, automotive, and packaging markets, completed the acquisition of McCann Color, Inc., a producer of color chips, for approximately $10 million. March 1, 2010 – CCL Industries, Inc. (TSX: CCL.B), a developer of label and specialty packaging solutions to producers of consumer brands, completed the acquisition of Purbrick Pty. Ltd., a manufacturer of labels, for approximately $2 million.


29

Plastics & Packaging (continued) February 23, 2010 – Pactiv Corp. (NYSE: PTV), a manufacturer and seller of consumer and foodservice/food packaging products, completed the acquisition of PWP Industries, Inc., a manufacturer of plastic packaging products, from Omninet Capital, LLC, a private investment firm, for approximately $200 million. February 15, 2010 – Greif, Inc. (NYSE: GEF), a manufacturer and seller of industrial packaging products, and containerboard and corrugated products worldwide, completed the acquisition of Storsack International GmbH, a manufacturer and marketer of flexible intermediate bulk containers. The financial terms of the transaction were not disclosed.


30

Plastics & Packaging (continued)

Benchmarking

Paper and Corrugated Packaging Paper and Corrugated PackagingInternational Paper Co. $23,366.0 Graphic Packaging Holding Company 0.4%MeadWestvaco Corporation 6,049.0 Rock‐Tenn Co. ‐4.9%Smurfit‐Stone Container Corp. 5,574.0 International Paper Co. ‐5.9%Graphic Packaging Holding Company 4,095.8 Temple‐Inland Inc. ‐7.9%Sonoco Products Co. 3,597.3 MeadWestvaco Corporation ‐8.9%Temple‐Inland Inc. 3,577.0 Packaging Corp. of America ‐9.0%Greif, Inc. 2,835.6 Sonoco Products Co. ‐12.7%Rock‐Tenn Co. 2,800.0 Smurfit‐Stone Container Corp. ‐20.8%Packaging Corp. of America 2,147.6 Greif, Inc. ‐21.5%

Plastics/Films Plastics/FilmsAptarGroup, Inc. 1,841.6 Inter Parfums SA ‐2.1%A. Schulman, Inc. 1,312.2 Radient Pharmaceuticals Corporation ‐2.8%Spartech Corp. 914.6 AptarGroup, Inc. ‐11.1%Myers Industries Inc. 701.8 Myers Industries Inc. ‐13.7%Tredegar Corp. 648.6 A. Schulman, Inc. ‐21.3%Inter Parfums SA 259.2 Spartech Corp. ‐25.2%Radient Pharmaceuticals Corporation 20.8 Tredegar Corp. ‐26.6%

Flexible Packaging Flexible PackagingSealed Air Corporation 4,242.8 CCL Industries Inc. 0.8%Bemis Co. Inc. 3,514.6 Winpak Ltd. ‐1.2%Pactiv Corp. 3,360.0 Multi‐Color Corp. ‐2.1%CCL Industries Inc. 1,199.0 Pactiv Corp. ‐5.8%AEP Industries Inc. 721.8 AEP Industries Inc. ‐6.1%Winpak Ltd. 506.0 Bemis Co. Inc. ‐7.0%Multi‐Color Corp. 274.6 Sealed Air Corporation ‐12.4%

Paper and Corrugated Packaging Paper and Corrugated PackagingPackaging Corp. of America 16.4% Packaging Corp. of America 23.5%Rock‐Tenn Co. 16.0% Rock‐Tenn Co. 21.1%International Paper Co. 14.4% International Paper Co. 20.7%Temple‐Inland Inc. 11.3% Smurfit‐Stone Container Corp. 17.6%Smurfit‐Stone Container Corp. 11.0% Temple‐Inland Inc. 16.9%Greif, Inc. 10.8% Greif, Inc. 14.5%Sonoco Products Co. 7.8% Graphic Packaging Holding Company 14.3%Graphic Packaging Holding Company 7.1% MeadWestvaco Corporation 13.7%MeadWestvaco Corporation 6.4% Sonoco Products Co. 12.6%

Plastics/Films Plastics/FilmsInter Parfums SA 13.5% AptarGroup, Inc. 18.4%AptarGroup, Inc. 11.2% Inter Parfums SA 15.7%Tredegar Corp. 6.8% Tredegar Corp. 13.0%Spartech Corp. 4.3% Spartech Corp. 8.7%A. Schulman, Inc. 4.0% Myers Industries Inc. 8.4%Myers Industries Inc. 3.2% A. Schulman, Inc. 5.7%Radient Pharmaceuticals Corporation ‐16.4% Radient Pharmaceuticals Corporation ‐8.9%

Flexible Packaging Flexible PackagingPactiv Corp. 17.2% Pactiv Corp. 22.7%Winpak Ltd. 13.0% Winpak Ltd. 18.2%Sealed Air Corporation 11.8% CCL Industries Inc. 17.3%Multi‐Color Corp. 9.2% Sealed Air Corporation 15.4%CCL Industries Inc. 9.0% Multi‐Color Corp. 14.0%Bemis Co. Inc. 8.7% Bemis Co. Inc. 13.2%AEP Industries Inc. 4.4% AEP Industries Inc. 7.1%

Paper and Corrugated Packaging Paper and Corrugated PackagingSonoco Products Co. 29.6% Sonoco Products Co. 1.3xMeadWestvaco Corporation 42.2% Packaging Corp. of America 1.3xPackaging Corp. of America 43.1% Temple‐Inland Inc. 1.5xGreif, Inc. 47.2% International Paper Co. 1.9xTemple‐Inland Inc. 50.3% Rock‐Tenn Co. 2.2xInternational Paper Co. 59.2% Greif, Inc. 2.4xRock‐Tenn Co. 59.7% MeadWestvaco Corporation 3.0xGraphic Packaging Holding Company 79.6% Smurfit‐Stone Container Corp. 3.9xSmurfit‐Stone Container Corp. 156.8% Graphic Packaging Holding Company 4.8x

Plastics/Films Plastics/FilmsTredegar Corp. 0.3% Tredegar Corp. 0.0xRadient Pharmaceuticals Corporation 7.8% Inter Parfums SA 0.7xInter Parfums SA 14.1% AptarGroup, Inc. 1.0xAptarGroup, Inc. 21.2% A. Schulman, Inc. 1.4xA. Schulman, Inc. 22.6% Myers Industries Inc. 1.8xMyers Industries Inc. 28.8% Spartech Corp. 2.5xSpartech Corp. 44.8% Radient Pharmaceuticals Corporation NM

Flexible Packaging Flexible PackagingWinpak Ltd. 0.0% Winpak Ltd. 0.0xMulti‐Color Corp. 39.2% Pactiv Corp. 1.7xCCL Industries Inc. 39.8% Multi‐Color Corp. 2.4xBemis Co. Inc. 40.5% CCL Industries Inc. 2.4xSealed Air Corporation 43.0% Sealed Air Corporation 2.5xPactiv Corp. 56.0% Bemis Co. Inc. 2.7xAEP Industries Inc. 73.8% AEP Industries Inc. 3.9x





31

Industrial Growth Industry Transactions *

Announced First Quarter 2010

Enterprise Enterprise Value to:Date Target Buyer Primary Industry Value Revenue EBITDA EBIT

3/31/2010 OTT Promotions, Inc. RICH LTD Fabricated Structural Metal Products ‐ ‐ ‐ ‐3/31/2010 Vanguard Solar, Inc. Natcore Technology, Inc. (TSXV:NXT) Electrical Components and Equipment ‐ ‐ ‐ ‐3/31/2010 InnoWare Plastic , Inc. Solo Cup Co. Plastic Packaging $24.0 ‐ ‐ ‐3/29/2010 Formrite Companies, Inc. HMF Innovations, Inc. Fabricated Structural Metal Products ‐ ‐ ‐ ‐3/29/2010 Litchfield Landscape Co Inc. Engledow, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐3/28/2010 BWAY Holding Company (NYSE:BWY) Madison Dearborn Partners, LLC Plastic Packaging $900.9 1.0x 6.5x 9.9x3/26/2010 Venture Metals, LLC Industrial Services of America, Inc.

(NasdaqCM:IDSA)Environmental and Facilities Services $4.4 ‐ ‐ ‐

3/26/2010 Texas Process Equipment Co., Canned Motor Pump Service Business

Teikoku USA Inc. Industrial Machinery ‐ ‐ ‐ ‐

3/25/2010 Bowmar LLC Undisclosed Electrical Components and Equipment $1.8 ‐ ‐ ‐3/25/2010 Forex365, Inc. (OTCPK:FRXT) Individual Investor Industrial Machinery $0.3 ‐ ‐ ‐3/24/2010 PV Powered, Inc. Advanced Energy Industries, Inc.

(NasdaqGS:AEIS)Electrical Components and Equipment $90.0 4.3x ‐ ‐

3/24/2010 S&C Electric Company, Polymer Cutout Business

Maclean Power, LLC Electrical Components and Equipment ‐ ‐ ‐ ‐

3/23/2010 OʹSullivan Films, Inc. Konrad Hornschuch AG Commodity Chemicals ‐ ‐ ‐ ‐3/23/2010 Biddle Precision Components Inc. Elyria Manufacturing Corp. Fabricated Structural Metal Products ‐ ‐ ‐ ‐3/23/2010 Compact Storage Systems, Inc. Spacesaver Corporation Industrial Machinery ‐ ‐ ‐ ‐3/23/2010 Farmers Co‐operative Grain Co. (Britton) Wheaton‐Dumont Coop Elevator Inc. Industrial Machinery ‐ ‐ ‐ ‐3/23/2010 Provo Craft and Novelty, Inc. BAML Capital Partners Specialty Chemicals ‐ ‐ ‐ ‐3/22/2010 Architects & Heroes Interiors, Inc. Imports by Four Hands L.P. Electrical Components and Equipment ‐ ‐ ‐ ‐3/22/2010 Interconnect Devices, Inc. Smiths Interconnect, Inc. Measuring, Analyzing, and Controlling

Instruments$185.0 ‐ ‐ ‐

3/22/2010 Aladdin Engineering & Manufacturing, Inc. Individual Investor Industrial Machinery ‐ ‐ ‐ ‐3/19/2010 50% stake in Toda America Inc. and Toda

Advanced Materials Inc.Itochu Corp. (TSE:8001) Specialty Chemicals ‐ ‐ ‐ ‐

3/18/2010 InPhase Technologies, Inc. Signal Lake Measuring, Analyzing, and Controlling Instruments

‐ ‐ ‐ ‐

3/17/2010 CSM Worldwide, Inc. IHS Inc. (NYSE:IHS) Measuring, Analyzing, and Controlling Instruments

$27.0 ‐ ‐ ‐

3/17/2010 Genovique Specialties Corporation Eastman Chemical Co. (NYSE:EMN) Commodity Chemicals ‐ ‐ ‐ ‐3/17/2010 Peninsula Packaging Company, LLC Odyssey Investment Partners, LLC Plastic Packaging ‐ ‐ ‐ ‐3/15/2010 Ace Animals, Inc. Sigma‐Aldrich Corporation (NasdaqGS:SIAL) Environmental and Facilities Services ‐ ‐ ‐ ‐3/15/2010 GE Energy, ESP and Emissions Monitoring

Business UnitsBabcock & Wilcox Power Generation Group Inc. Industrial Machinery ‐ ‐ ‐ ‐

3/12/2010 Interlocking Deck Systems International LLC LB Foster Co. (NasdaqGS:FSTR) Fabricated Structural Metal Products $7.0 ‐ ‐ ‐3/11/2010 Super Steel Products, Corp. Individual Investor Fabricated Structural Metal Products ‐ ‐ ‐ ‐3/11/2010 Trash Prince, Inc. Advanced Disposal Services, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐3/11/2010 North American Phoenix Energy Services ALSTOM Measuring, Analyzing, and Controlling

Instruments‐ ‐ ‐ ‐

3/10/2010 Milwaukee Forge, Inc. NOG Inc. Fabricated Structural Metal Products $3.0 ‐ ‐ ‐3/10/2010 Demay International, LLC and Church Energy

ServicesAxon Energy Products Industrial Machinery ‐ ‐ ‐ ‐

3/9/2010 Artific ial Muscle, Inc. Bayer MaterialScience, LLC Industrial Machinery ‐ ‐ ‐ ‐3/9/2010 Morse Manufacturing Company, Inc. Altec, Inc. Industrial Machinery ‐ ‐ ‐ ‐3/9/2010 Varian Inc., Certain Product Lines Bruker Corporation (NasdaqGS:BRKR) Measuring, Analyzing, and Controlling

Instruments$37.5 ‐ ‐ ‐

3/8/2010 Andrews Paper & Chemical Company Inc. Aceto Corp. (NasdaqGS:ACET) Diversified Chemicals ‐ ‐ ‐ ‐3/8/2010 RathGibson, Inc. Blackrock Financial Management Inc.; Eaton

Vance Management; Wayzata Investment Partners LLC; CI Investments Inc.

Industrial Machinery $343.6 1.2x ‐ ‐

3/5/2010 Edge Adhesives Holdings, Inc. Superior Capital Partners L.L.C. Specialty Chemicals ‐ ‐ ‐ ‐3/2/2010 Styron Corp. Bain Capital, LLC Commodity Chemicals $1,630.0 0.5x ‐ ‐3/2/2010 Patco Electronics, Inc. Technology Research Corp. (NasdaqGM:TRCI) Electrical Components and Equipment $6.4 1.1x 2.3x 2.3x3/2/2010 Terra Industries Inc. (NYSE:TRA) CF Industries Holdings, Inc. (NYSE:CF) Industrial Gases $4,928.3 3.1x 12.2x 14.8x3/1/2010 Ocala Recycling, Inc. The David J. Joseph Company Environmental and Facilities Services ‐ ‐ ‐ ‐3/1/2010 Excel Waste Services LLC Advanced Disposal Services, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐3/1/2010 McCann Color, Inc. A. Schulman, Inc. (NasdaqGS:SHLM) Specialty Chemicals $10.0 ‐ ‐ ‐2/26/2010 Alexander Chemical Corporation Carus Corporation Industrial Gases ‐ ‐ ‐ ‐2/26/2010 Best Solar Co. Ltd., Crystalline Module

Manufacturing PlantLDK Solar Co.Ltd. (NYSE:LDK) Electrical Components and Equipment $21.5 ‐ ‐ ‐

2/26/2010 Remediation Services, Inc., Prior to RM with China LianDi Clean Technology Engineering Ltd.

Remediation Services, Inc. (OTCBB:RMSI) Environmental and Facilities Services ‐ ‐ ‐ ‐

2/26/2010 Koch Filter Corporation Tomkins plc (LSE:TOMK) Industrial Machinery $35.5 0.9x ‐ ‐2/23/2010 PWP Industries, Inc. Pactiv Corp. (NYSE:PTV) Plastic Packaging $200.0 1.4x ‐ ‐2/22/2010 VUDU, Inc. Wal‐Mart Stores Inc. (NYSE:WMT) Electronic Equipment and Instruments ‐ ‐ ‐ ‐2/22/2010 AquaStar Corporation Real Paper Displays Inc. (OTCPK:RPPR) Industrial Machinery ‐ ‐ ‐ ‐2/21/2010 Smith International Inc. (NYSE:SII) Schlumberger Limited (NYSE:SLB) Specialty Chemicals $13,658.4 1.7x 13.4x 20.8x2/19/2010 Insight Technology Incorporated L‐3 Communications Holdings Inc. (NYSE:LLL) Electrical Components and Equipment ‐ ‐ ‐ ‐


32

Industrial Growth Industry Transactions * (continued)

Announced First Quarter 2010

Enterprise Enterprise Value to:Date Target Buyer Primary Industry Value Revenue EBITDA EBIT

2/19/2010 Waste Associates Holdings, LLC BlackEagle Partners, LLC Environmental and Facilities Services ‐ ‐ ‐ ‐2/19/2010 IntelliPack, Inc. Pregis Management Corp. Industrial Machinery $31.5 ‐ ‐ ‐2/18/2010 PECO II Inc. (NasdaqCM:PIII) Lineage Power Corporation Electrical Components and Equipment $9.4 0.2x ‐ ‐2/18/2010 Shovon, LLC Healthcare Of Today, Inc . Electronic Equipment and Instruments $15.0 ‐ ‐ ‐2/18/2010 Global Renewable Energy Systems, Inc. Universal Media Corp. (OTCPK:UMED) Environmental and Facilities Services $4.7 ‐ ‐ ‐2/18/2010 Equipment Brokers, Inc . Anthony, Inc . Industrial Machinery ‐ ‐ ‐ ‐2/17/2010 Scalise Industries Corporation EMCOR Group Inc. (NYSE:EME) Environmental and Facilities Services ‐ ‐ ‐ ‐2/17/2010 Nova Analytics Corporation ITT Corporation (NYSE:ITT) Electronic Equipment and Instruments $390.0 2.9x ‐ ‐2/17/2010 Nordic Air Incorporated HDT Engineered Technologies Industrial Machinery ‐ ‐ ‐ ‐2/17/2010 GH Induction Atmospheres, LLC GH Electrotermia, S.A. Industrial Machinery ‐ ‐ ‐ ‐2/17/2010 Arch Chemicals Inc., Industrial Wood Coatings

BusinessSherwin‐Williams Co. (NYSE:SHW) Specialty Chemicals $54.3 0.4x ‐ ‐

2/16/2010 Servo Dynamics Corporation F O Engineering, Inc. Electronic Equipment and Instruments ‐ ‐ ‐ ‐2/16/2010 Portec Rail Products Inc. (NasdaqGM:PRPX) LB Foster Co. (NasdaqGS:FSTR) Industrial Machinery $108.9 1.2x 9.5x 12.7x2/15/2010 Vapor Extraction Technology, Inc . Environmental Testing Laboratories, Inc. Environmental and Facilities Services $0.4 ‐ ‐ ‐2/12/2010 CyVolt Energy Systems, Inc . Neah Power Systems, Inc. (OTCBB:NPWZ) Electrical Components and Equipment ‐ ‐ ‐ ‐2/12/2010 Bridge Bioscience, Inc. Bulldog Bio, Inc . Measuring, Analyzing, and Controlling

Instruments‐ ‐ ‐ ‐

2/12/2010 CRC Manufacturing Inc . Hydra Tech A/S Industrial Machinery ‐ ‐ ‐ ‐2/12/2010 Premier Packaging Corporation Document Security Systems, Inc . (AMEX:DMC) Paper Packaging $4.6 0.7x ‐ ‐

2/11/2010 Curtiss‐Wright Corp., Two Manufacturing Facilities in Cleveland and Cincinnati, Ohio

W. P. Carey & Co. LLC (NYSE:WPC) Measuring, Analyzing, and Controlling Instruments

$13.8 ‐ ‐ ‐

2/10/2010 Agilent Technologies Inc., Network Solutions Test Business

JDS Uniphase Corp. (NasdaqGS:JDSU) Measuring, Analyzing, and Controlling Instruments

$165.0 1.0x ‐ ‐

2/10/2010 Acme Engineering and Manufacturing Corporation, Seven Product Lines of Centrifugal Fans

Hartzell Fan, Inc . Industrial Machinery ‐ ‐ ‐ ‐

2/9/2010 GTC Technology, Inc . SCG Chemicals Co., Ltd. Industrial Machinery $32.0 ‐ ‐ ‐2/9/2010 Quadna, Inc. DXP Enterprises Inc. (NasdaqGS:DXPE) Industrial Machinery $28.0 ‐ ‐ ‐2/8/2010 60,000 sq. ft. Manufacturing Facility in Baxter

Springs, KansasAtec Steel, L.L.C. Fabricated Structural Metal Products ‐ ‐ ‐ ‐

2/8/2010 Ausra, Inc. Areva SA (ENXTPA:CEI) Electrical Components and Equipment ‐ ‐ ‐ ‐2/8/2010 Waste Removal Services, LLC Advanced Disposal Services, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐2/8/2010 Wilken Seed Grains Inc. Beckʹs Hybrids, Inc Environmental and Facilities Services ‐ ‐ ‐ ‐2/8/2010 Resource Exchange of America Corp

(OTCBB:RXAC)Individual Investor Environmental and Facilities Services $0.3 ‐ ‐ ‐

2/8/2010 2,628 Acres and Related Mining Claims of Ganes Creek Mine in Alaska

VHGI Gold, Inc . Industrial Machinery ‐ ‐ ‐ ‐

2/5/2010 Nuszer Kopatz Inc . Stanley Consultants, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐2/5/2010 Intirion Corp. Danby Products Limited Industrial Machinery $11.5 ‐ ‐ ‐2/4/2010 Lanart Works Inc . Precision Valve & Automation, Inc . Fabricated Structural Metal Products ‐ ‐ ‐ ‐2/4/2010 Newco Valves LP Cameron International Corporation (NYSE:CAM) Industrial Machinery ‐ ‐ ‐ ‐

2/4/2010 Mile High Test Services, Inc . Gardien Services USA Inc . Measuring, Analyzing, and Controlling Instruments

‐ ‐ ‐ ‐

2/2/2010 Western Environmental Technology Laboratories, Inc.

Undisclosed Strategic Buyer Electronic Equipment and Instruments ‐ ‐ ‐ ‐

2/2/2010 Republic Services Inc., New York City Assets Action Carting Environmental Services, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐2/2/2010 East End Sanitation, Inc . Action Carting Environmental Services, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐2/2/2010 NuStar Terminals Operations Partnership L.P.,

Liquid Terminal Facility in BrunswickBlackwater Midstream Corp. (OTCBB:BWMS) Industrial Machinery $1.8 ‐ ‐ ‐

2/2/2010 Mikron Valve & Manufacturer, Inc. PSB Industries, Inc. Industrial Machinery ‐ ‐ ‐ ‐2/2/2010 Ames Safety Envelope Company Tab Products Co LLC Plastic Packaging; Paper Packaging ‐ ‐ ‐ ‐2/1/2010 Sunoco Chemicals, Inc . Braskem America, Inc . Specialty Chemicals $350.0 ‐ ‐ ‐2/1/2010 NovaWave Technologies, Inc . Thermo Fisher Scientific, Inc . (NYSE:TMO) Electronic Equipment and Instruments ‐ ‐ ‐ ‐2/1/2010 ICU Environmental, Health & Safety Total Safety U.S., Inc . Environmental and Facilities Services ‐ ‐ ‐ ‐1/31/2010 Forest Guard Inc . Eco2 Forests, Inc . (OTCPK:ECOF) Environmental and Facilities Services ‐ ‐ ‐ ‐1/29/2010 ACF Industries, LLC, Certain Assets American Railcar Industries (NasdaqGS:ARII) Fabricated Structural Metal Products $0.9 ‐ ‐ ‐1/29/2010 Hyde Marine, Inc. Calgon Carbon Corporation (NYSE:CCC) Industrial Machinery ‐ ‐ ‐ ‐1/28/2010 Agilent Technologies Inc., Micro Gas

Chromatography Business LineINFICON Holding AG (SWX:IFCN) Electronic Equipment and Instruments ‐ ‐ ‐ ‐

1/28/2010 Ernest F. Fullam, Inc . MTI Instruments, Inc . Measuring, Analyzing, and Controlling Instruments

‐ ‐ ‐ ‐

1/27/2010 Central Florida Disposal Interests, L.L.C. Southwaste Services, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐1/27/2010 Scientific Games Racing, LLC Sportech plc (LSE:SPO) Manufacturing Services $87.3 0.8x ‐ ‐1/26/2010 DMJM Harris, Inc . and Watershed Concepts Inc . AECOM Technology Corporation (NYSE:ACM) Environmental and Facilities Services ‐ ‐ ‐ ‐

1/26/2010 CDI Vaults Inc. Access Information Management Shared Services, LLC

Environmental and Facilities Services ‐ ‐ ‐ ‐

1/26/2010 Genie Industries, Inc., Terex Power Buggy Product Line

Indy Equipment and Supply LLC Industrial Machinery ‐ ‐ ‐ ‐

1/26/2010 Sterling Ultra Precision, Inc . Ametek Inc . (NYSE:AME) Measuring, Analyzing, and Controlling Instruments

‐ ‐ ‐ ‐


33

Industrial Growth Industry Transactions * (continued) Announced First Quarter 2010

Enterprise Enterprise Value to:

Date Target Buyer Primary Industry Value Revenue EBITDA EBIT1/25/2010 GeoInstruments, Inc., Prompt Fission Neutron

BusinessUranium Exploration Australia Ltd. (ASX:UXA) Electronic Equipment and Instruments $1.3 ‐ ‐ ‐

1/25/2010 The Green Plan, Inc . The Brickman Group, Ltd. Environmental and Facilities Services ‐ ‐ ‐ ‐1/25/2010 Talon Massman, LLC Massman Automation Designs, LLC Industrial Machinery ‐ ‐ ‐ ‐1/23/2010 Custom Marketing Company, Inc . Capital For Business, Inc .; Diamond State

Ventures; MidStates Capital L.P.Industrial Machinery ‐ ‐ ‐ ‐

1/20/2010 JT Packard & Associates, Inc . Thomas & Betts Corp. (NYSE:TNB) Diversified Support Services $22.0 0.4x ‐ ‐1/20/2010 Defcon FORCE LLC The Selinsky FORCE, LLC Industrial Machinery ‐ ‐ ‐ ‐1/19/2010 American Insulated Wire Corporation Southwire Company Electrical Components and Equipment ‐ ‐ ‐ ‐1/19/2010 Simco Ltd., Micro Air Core Auto Meter Products, Inc. Electrical Components and Equipment ‐ ‐ ‐ ‐1/19/2010 Ahura Scientific , Inc. Thermo Fisher Scientific , Inc . (NYSE:TMO) Electronic Equipment and Instruments $145.0 3.2x ‐ ‐1/19/2010 Two Salt Water Disposal Facilities Located in

Wibeaux and Sidney Areas of MontanaCustom Carbon Processing, Inc . Environmental and Facilities Services ‐ ‐ ‐ ‐

1/19/2010 Delta Sanitation LLC Waste Pro USA Inc . Environmental and Facilities Services $25.0 ‐ ‐ ‐1/18/2010 Leading Edge Turbine Technologies, Ltd. Dresser‐Rand Company Industrial Machinery $35.0 1.4x ‐ ‐1/18/2010 Zemetrics, Inc. Zygo Corp. (NasdaqGS:ZIGO) Electronic Equipment and Instruments $1.8 ‐ ‐ ‐1/18/2010 Alliance Source Testing LLC, Environmental,

Engineering and Health, and Safety DivisionsLittleJohn Engineering Associates, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐

1/18/2010 Premier Equipment Corporation, Inc ., Compressor Division

Atlas Copco Compressors, LLC Industrial Machinery ‐ ‐ ‐ ‐

1/18/2010 Pretium Packaging, LLC Castle Harlan, Inc . Plastic Packaging ‐ ‐ ‐ ‐1/18/2010 PVC Container Corp. (OTCPK:PVCO) Pretium Packaging, LLC Plastic Packaging ‐ ‐ ‐ ‐1/15/2010 Catalyst Lighting Group Inc . Woodman Management Corp. Electrical Components and Equipment $0.2 ‐ ‐ ‐1/15/2010 Williams Companies, Inc., Gas Pipeline,

Midstream Assets, and Interests in Williams Pipeline Partner

Williams Partners L.P. (NYSE:WPZ) Environmental and Facilities Services $11,742.3 ‐ ‐ ‐

1/14/2010 Edison Mission Group, Solar Project Development Pipeline

First Solar, Inc . (NasdaqGS:FSLR) Electrical Components and Equipment ‐ ‐ ‐ ‐

1/14/2010 Douglas Battery Manufacturing Company EnerSys (NYSE:ENS) Electrical Components and Equipment ‐ ‐ ‐ ‐1/13/2010 Springfield Precision Instruments, Inc. Taylor Precision Products, LLC Electronic Equipment and Instruments ‐ ‐ ‐ ‐1/13/2010 Audet‐Chasse Tree Service Inc Nature ʹs Trees, Inc . Environmental and Facilities Services ‐ ‐ ‐ ‐1/12/2010 Viskase Companies Inc . (OTCPK:VKSC) Icahn Enterprises, L.P. (NYSE:IEP) Plastic Packaging $173.7 ‐ ‐ ‐1/11/2010 Tajima Corporation USA Inc . C.R. Laurence Co. Inc. Fabricated Structural Metal Products ‐ ‐ ‐ ‐1/11/2010 Zareba Systems Inc . Woodstream Corporation Electrical Components and Equipment $23.4 0.8x 7.9x 10.5x1/11/2010 Bilt‐Rite Conveyors, Inc. Titan Industries, Inc. Industrial Machinery ‐ ‐ ‐ ‐1/8/2010 Anderson Enterprises, LLC Polychem Corporation Fabricated Structural Metal Products ‐ ‐ ‐ ‐1/8/2010 International Development and Environmental

HoldingsPetrocom Energy Limited Environmental and Facilities Services ‐ ‐ ‐ ‐

1/8/2010 Craftmade International Inc . (OTCPK:CRFT) Litex Industries, Limited Electrical Components and Equipment $68.9 0.5x ‐ ‐1/8/2010 K‐Tron International, Inc. Hillenbrand, Inc. (NYSE:HI) Industrial Machinery $378.6 2.0x 10.6x 12.7x1/8/2010 Proton Laboratories, Inc ., Prior to Reverse

Merger with Regenobody S.A. (OTCPK:PLBI)Proton Laboratories, Inc . (OTCPK:PLBI) Industrial Machinery ‐ ‐ ‐ ‐

1/7/2010 Champ Industries, Inc . Alfa Laval AB (OM:ALFA) Industrial Machinery ‐ ‐ ‐ ‐1/7/2010 Futuremark Corporation, Mobile and Embedded

Business UnitRightware Oy Electronic Equipment and Instruments ‐ ‐ ‐ ‐

1/7/2010 B. Poole Restoration, LLC Instar Services Group, Inc. Environmental and Facilities Services ‐ ‐ ‐ ‐1/7/2010 Waltco Hydraulics Ligon Industries, LLC Industrial Machinery ‐ ‐ ‐ ‐1/7/2010 Carter Chambers, LLC Desselle‐Maggard Corporation Industrial Machinery ‐ ‐ ‐ ‐1/7/2010 LORD Corporation, Thick Film Cermet Product

LineHeraeus Materials Technology LLC Specialty Chemicals ‐ ‐ ‐ ‐

1/6/2010 Acorn Industrial, Inc. and Dillingham & Smith Mechanical and Sheet Metal Contractors, LLC

Comfort Systems USA Inc. (NYSE:FIX) Industrial Machinery ‐ ‐ ‐ ‐

1/6/2010 AbitibiBowater Inc., Three Material Recycling Facilities

WM Recycle America, LLC Environmental and Facilities Services $11.6 ‐ ‐ ‐

1/6/2010 McNeely Plastic Products, Inc. S igma Plastics Group Plastic Packaging ‐ ‐ ‐ ‐1/5/2010 DuPont Chemicals and Fluoroproducts, Specialty

Catalysts BusinessDorf Ketal Chemical, LLC Specialty Chemicals ‐ ‐ ‐ ‐

1/4/2010 General Cable Corp. (NYSE:BGC) OppenheimerFunds, Inc. Electrical Components and Equipment ‐ ‐ ‐ ‐1/4/2010 Industrial Water Services, Inc . Liquid Environmental Solutions of Texas, LLC Environmental and Facilities Services ‐ ‐ ‐ ‐

High 4.3x 13.4x 20.8xLow 0.2x 2.3x 2.3xMean 1.4x 8.9x 11.9xMedian 1.0x 9.5x 12.7x

*Includes transactions occurring within segments of the “NCA Industrial Growth Universe”


34

Industrial Growth Industry Transactions * (continued)

Announced Transactions

0

20

40

60

80

100

120

140

160

180

200

Q2 ́08 Q3 ́08 Q4 ́08 Q1 ́09 Q2 ́09 Q3 ́09 Q4 ́09 Q1 ́10

# of Deals

Number of Transactions

`

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Q2 ́08 Q3 ́08 Q4 ́08 Q1 ́09 Q2 ́09 Q3 ́09 Q4 ́09 Q1 ́10

$mms

Value of Transactions

`

* Includes transactions occurring within segments of the “NCA Industrial Growth Universe”


35

General Distressed Market Indicators

Business Bankruptcy Filings

Source: Federal Judiciary

U.S. Speculative‐Grade Default Rate Versus Distressed Credit Ratio

Source: Standard and Poor’s “U.S. Distressed Debt Monitor,” March 23, 2010

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Chapter 7BankruptcyReform

Chapter 11

Chapter 12/13

Business bankruptcy filings totaled 60,837 in 2009, up 40% from the 43,533 filings during 2008.

Standard & Poorʹs distress ratio, defined as the number of high‐yield securities trading at spreads greater than 1,000 bps relative to Treasuries divided by the total number of speculative‐grade‐rated issues, fell to 9.7% on March 15 from 12.7% in February. The distress ratio is still below its long‐term average of 16% after a prolonged period at more elevated levels.


36

Distribution of Standard and Poor’s Distress Ratio by Industry

Source: Standard and Poor’s “U.S. Distressed Debt Monitor,” March 23, 2010

Institutional Loans That Have Defaulted During 1Q10 Issuer Industry Deal Date Default Date

Bankruptcy Date

Total Initial Amount

Initial Institutional Amount

Xerium Technologies Inc Forest products May-05 Mar-10 505$ 405$

Medical Staffing Network Business Services Jul-07 Mar-10 155$ 125$

Envirosolutions Real Prop Environmental Jul-05 Mar-10 225$ 185$

Mega Brands / Mega Bloks Entertainment Sep-05 Feb-10 400$ 260$

Penton Media Printing & Publishing Feb-07 Feb-10 Feb-10 966$ 886$

Spheris Professional Service Dec-04 Feb-10 100$ 75$

Natural Products Group Cons. Nondurables Feb-07 Jan-10 600$ 565$

Thomas Nelson Printing & Publishing Jun-06 Jan-10 235$ 205$

Jacuzzi Brands Manufacturing Feb-07 Jan-10 150$ 150$

New World Gaming Gaming & Hotel Jun-07 Jan-10 1,012$ 1,012$

Regent Communications Media Nov-06 Jan-10 115$ 115$

International Aluminum Corp Building Materials Apr-07 Jan-10 145$ 125$ Source: Standard & Poor’s LCD “1Q10 Institutional Loan Default Quarterly Review”


37

Industrial Growth Industry Distressed News – First Quarter 2010

March 31, 2010 – Electrical Components International, Inc., Standard & Poorʹs Downgrade and Credit Watch/Outlook Action D/‐‐/‐‐ from CCC‐/Negative/‐‐: Local Currency Rating March 30, 2010 – Xerium Technologies, Inc. (NYSE: XRM), Standard & Poorʹs Downgrade and Credit Watch/Outlook Action D/‐‐/‐‐ from CC/Negative/‐‐: Local Currency Rating March 30, 2010 – Xerium Technologies, Inc., along with Xerium V US Ltd., Weavexx Corporation, Xerium III US Ltd., Stowe Woodward Licensco, LLC, Stowe Woodward, LLC, XTI, LLC, Huyck Licensco, Inc., Xerium IV (US) Limited, Huyck Wangner Austria GmbH, Xerium Germany Holding GmbH, Xerium Canada, Inc., Xerium Italia S.p.a. and Xerium Asia, LLC, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company listed assets of $693.51 million and liabilities of $813.17 million. The main unsecured creditors were Österreichische Forschungsförderungsgesellschaft, Teijin Monofilament Germany Gmbh, JLM Advanced Technical Services, Inc., Mare S.p.A., Perlon‐Monofil GmbH, INVISTA, Inc., Tonak a.s., Sandusky International, Inc., EMS‐Griltech and EconGas GmbH. Christopher Updike, Sharon J. Richardson and Zachary H. Smith of Cadwalader Wickersham & Taft LLP and Jason M. Madron and Mark D. Collins of Richards, Layton & Finger, P.A. represented the company as its legal counsels. March 30, 2010 – Electrical Components International, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company listed assets and liabilities in the range of $100 million and $500 million. The main unsecured creditors were Tyco Electronics Corporation, Vulkor, Inc., Coleman Cable, Inc., Jabil Circuit, Inc., Molex Connector Corporation, Southwire Company, Power & Signal Group, JST Corporation, Sager Electrical Supply Company, Inc. and Therm‐O‐Disc, Inc. Chun I. Jang, Paul Noble Heath and Travis A. McRoberts of Richards, Layton & Finger, P.A. represented the company as its legal counsel. March 23, 2010 – Plastifar S.A., Ranor, Inc. and Hub Technologies, Inc. filed an involuntary petition for liquidation under Chapter 7 against Gloucester Engineering Co., Inc. in the U.S. Bankruptcy Court for the District of Massachusetts, Boston. The total petitioning claim amount against company is $0.48 million. Frederic D. Grant, Jr. represented Plastifar, Thomas P. Smith of Caffrey & Smith, P.C. represented Ranor and Michael Lane represented Hub Technologies as their respective legal counsels. March 16, 2010 – Total Waste Logistics, LLC filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company listed assets in the range of $1 million and $10 million and liabilities in the range of $10 million to $50 million. The main unsecured creditors were Coppola Corp., First Insurance Funding Corporation, Ohio Environmental Protection Agency, Evergreen Uni, URS Corporation, Clark Enterprises and Shook Brothers, Inc. Michael Jason Barrie of Benesch Friedlander Coplan & Aronoff LLP represented the company as its legal counsel.


38

Industrial Growth Industry Distressed News – First Quarter 2010 March 12, 2010 – EnviroSolutions, Inc., Standard & Poorʹs Downgrade and Credit Watch/Outlook Action D/‐‐/‐‐ from CCC/Negative/‐‐: Local Currency Rating March 10, 2010 – EnviroSolutions, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York, Manhattan. The company listed assets and liabilities in the range of $100 million to $500 million. The main unsecured creditors were U.S. Bank National, PNC Bank, NA, CSX Transportation, Inc., Liberty Waste Transpotation, LLC, Wills Trucking, Inc., FAES Amadeo Farell S.A.U., Covanta Energy, Inc., English Paving Co., Drew Transport Services, LLC, and Holtzman Propane LLC. It retained John Longmire of Willkie Farr & Gallagher LLP as the legal counsel. March 2, 2010 – Smurfit‐Stone Container Enterprises, Inc. filed its 10‐K for the period ending December 31, 2009. In this report its auditor, Ernst & Young LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern. March 1, 2010 – American Pacific Corp. (NasdaqGM: APFC), Standard & Poorʹs Downgrade and Credit Watch/Outlook Action B/Stable/‐‐ from B+/Negative/‐‐: Local Currency Rating February 26, 2010 – Bemis Co., Inc. (NYSE: BMS), Standard & Poorʹs Downgrade and Credit Watch/Outlook Action BBB/Positive/A‐2 from A/Watch Neg/A‐1: Local Currency Rating February 25, 2010 – W.R. Grace & Co. filed its 10‐K for the period ending December 31, 2009. In this report its auditor, PricewaterhouseCoopers LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern. February 24, 2010 – EPV Solar, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey. The company listed both assets and liabilities ranging between $50 million and $100 million. The main unsecured creditors were Guardian Manufacturing, Heller Ehrman LLP, Grant Thornton LLP, Advanced Energy Industries, Inc., Kraft Electronics, AGC Flat Glass North America, Inc., Newport Corp., Goodwin Procter LLP, Edwards Vacuum, Inc., and Sterne Kessler Goldstein & Fox. Kenneth A. Rosen and S. Jason Teele of Lowenstein Sandler PC represented the debtor as its legal counsel. February 16, 2010 – Micro Imaging Technology, Inc. filed its K for the period ending October 31, 2009. In this report its auditor, Jeffrey S. Gilbert, CPA, gave an unqualified opinion expressing doubt that the company can continue as a going concern. February 12, 2010 – Casita Enterprises, Inc. filed its 8‐K for the period ending December 31, 2008. In this report its auditor, Salberg & Company, P.A., gave an unqualified opinion expressing doubt that the company can continue as a going concern.


39

Industrial Growth Industry Distressed News – First Quarter 2010

February 3, 2010 – Zayat Stables, LLC filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey, Newark. The company listed assets and liabilities in the range of $10 million to $50 million. The main unsecured creditors were Darley Stud Management, LLC, White & Case, LLP, Adena Springs, Steve Asmussen Racing Stables, ES&S, LLC, H.E. Sutton Forwarding, LLC, Gainesway, Equine Medical and Surgical Group, Stockplace and Nicholas P. Zito Racing Stable, Inc. Michael D. Sirota of Cole, Schotz, Meisel, Forman & Leonard, P.A. represented the company as its legal counsel and J.H. Cohn LLP represented the company as its financial advisor. February 3, 2010 – Neenah Enterprises, Inc., along with its affiliates Neenah Foundry Co., NFC Castings, Inc., Advanced Cast Products, Inc., Mercer Forge Corporation, Deeter Foundry, Inc., Dalton Corporation, Belcher Corporation, A&M Specialties, Inc., Dalton Corp. Kendalville Manufacturing Facility, Dalton Corporation Stryker Machining Facility, and Morganʹs Welding, Inc., filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The company listed its assets in the range of $1 million to $10 million and liabilities in the range of $100 million to $500 million. The unsecured creditors include Tontine Capital Management, LLC, Sadoff & Rudoy Industries, LLP, Gerdau Ameristeel U.S., Inc., Dana Holding Corporation, Oudenhoven Construction, Inc., Louis Padnos Iron & Metal Company, The Timken Corporation, SandMold Systems, Inc., Wisconsin Electric Power Co. and Caterpillar, Inc. The company hired Edmon L. Morton & Kenneth J. Enos of Young, Conaway, Stargatt & Taylor and Larry J. Nyhan of Sidley Austin LLP as its debtor counsels. February 2, 2010 – S.H. Leggitt Company filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Western District of Texas. The debtor listed its assets within $1 million to $10 million and liabilities within $10 million to $50 million. Chase Brass & Copper Company, Inc., Headwaters MB, LLC, Manth‐Brownell, Inc., Ka Shui Manufactory Co., Ltd., Hutmen SA, Novasfer Srl, Halcor Metalworks S.A. (Greece), NSF International, Flex‐Tech Hose and Tubing, Inc. and Protech Global Solutions. The debtor hired Joseph D. Martinec of Martinec, Winn, Vickers & McElroy, P.C. as its legal advisor. February 1, 2010 – Wurzburg, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Western District of Tennessee, Memphis. The company listed assets and liabilities in the range of $10 million to $50 million. The main unsecured creditors were 3M Co., Gibson Corrugated, LLC, American Express Corp., AEP Industries, Inc., Free‐Flow Packaging International, Inc., Sigma Stretch Film Corp., Averitt Express, Inc., Pregis Corporation, Signode Distributor Sales and American Container, Inc. Jonathan E. Scharff of Harris Shelton Hanover Walsh, PLLC represented the company as its legal counsel.


40

Industrial Growth Industry Distressed News – First Quarter 2010 January 26, 2010 – Perry Uniontown Ventures I, LLC filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Alabama. The debtor listed both its assets and liabilities within $50 million to $100 million. The major unsecured creditors were Phillips and Jordan, Inc., Phill‐Con Services, LLC, MetLife, Inc., Ensign Peak Advisors, Inc., Perry County Alabama, Alabama Department of Revenue and Seagull Consulting II Corp. The debtor hired Jeffery J. Hartley of Helmsing, Leach, Herlon, Newman & Rouse, PC as its legal counsel. January 20, 2010 – Coleman Cable, Inc. (NasdaqGM: CCIX), Standard & Poorʹs Downgrade and Credit Watch/Outlook Action B+/Stable/‐‐ from BB‐/Negative/‐‐: Local Currency Rating January 15, 2010 – Sherwood Farms, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida. The company listed its assets and liabilities in the range of $10 million to $50 million. The unsecured creditors include AmeriGas, Inc., Bank of America Corp., Chase Bank USA, NA and Agro Distribution, LLC. The company hired Mariane L. Dorris & R. Scott Shuker of Latham Shuker Eden & Beaudine LLP as its debtor counsel. January 13, 2010 – Protective Products of America, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Florida. The company both listed assets and liabilities ranging between $10 million to $50 million. The main unsecured creditors were N/S Sawgrass Office Associates, LLC, PricewaterhouseCoopers LLP, Sidley Austin LLP, and Gowling Lafleur Henderson LLP. Debi E. Galler and Jordi Guso of Berger Singerman, P.A. represented the debtor as its legal counsel. January 13, 2010 – Neah Power Systems, Inc. filed its 10‐K for the period ending September 30, 2009. In this report its auditor, Peterson Sullivan PLLC, gave an unqualified opinion expressing doubt that the company can continue as a going concern. January 13, 2010 – Magnum dʹOr Resources, Inc. filed its 10‐K for the period ending September 30, 2009. In this report its auditor, Weinberg & Company, P.A., gave an unqualified opinion expressing doubt that the company can continue as a going concern. January 12, 2010 – Boomerang Systems, Inc. filed its 10‐K for the period ending September 30, 2009. In this report its auditor, Liebman Goldberg & Drogin LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern.


41

Notes

Certain industry participants were excluded from this newsletter due to a lack of trading volume, a lack of available financial information, a bankruptcy filing or a change in their business plan.

Enterprise Value (EV) = Common equity value + preferred equity + debt – cash & short‐term investments.

EBITDA = Earnings before interest, taxes, depreciation and amortization.

EBIT = Earnings before interest and taxes.

YTM = Yield to Maturity.

EV multiples are based on the book value of the companies’ debt and not current trading volume. The numbers presented in this report have been adjusted to exclude non‐recurring and extraordinary items, net of taxes.

NA = Not available.

Sources: Capital IQ, Bloomberg, company 10‐K, 10‐Q and 8‐K SEC filings, annual reports and press releases.

Any public companies chosen for the “NCA Industrial Growth Universe” are companies commonly used for industry information to show performance within a sector. They do not include all public companies that could be categorized within the sector and were not created as benchmarks; they do not imply benchmarking and do not constitute recommendations for a particular security and/or sector. The charts and graphs used in this report have been compiled by Navigant Capital Advisors solely for purposes of illustration.

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