Good Morning

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Good Morning!
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Welcome
Mike Horner
Business Manager, Lucite Canada
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• 1.5 billion global corporation
• Worlds largest merchant monomer producer
• Pioneer and owner of new Alpha monomer production
  technology (ethylene process) with new plant in
  Singapore
• 14 global manufacturing sites
• 2,000 employees

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• November 11, 2008 Mitsubishi Rayon Co., Ltd.
  announces acquisition of Lucite International
  Group for US 1.6 billion
• Acquisition makes MRC a global market player
• Annual sales of Yen 600 billion
• 7,000 employees

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• Strong history and continued commitment to the
  spa industry

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Lucite The Source of Inspiration

• Lucite continues to lead the spa industry
• RD leader color, texture, formulation, spa
  surrounds, etc.
• Extensive industry research
• Member of Color Marketing Group, the premier
  international association for color trend
  forecasting
• Longtime member and leader in the Hot Tub Council
  and APSP currently on the board of APSP
• 20 years of category advertising
• Dealer support and marketing efforts generate
  leads that are roven to drive sales

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Three announcements

• Exciting new colors
• Commitment to Microban antimicrobial product
  protection
• Groundbreaking environmental product innovation

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2 Exciting
New Colors
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Continued color innovation by Lucite

• Invented Gemstones
• Invented large particle Celestial Granite
• Invented Lustre Granite

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Introducing Velour and Satin
Satin
Velour
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Introducing Velour and Satin
Satin

• Two new visually interesting colors
• Development based on consumer and industry
  research to keep colors palette fresh and
  relevant to todays trends
• Depth of look from pearl effect strongly desired
  by consumers
• Part of Lustre Granite series ensures ease of
  manufacturing
• Includes Microban antimicrobial product
  protection

Velour
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Lucite 100
Commitment To
Microban
Antimicrobial Product Protection
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Now clean comes in every color!

• Starting in 2009, every lustrous Lucite color
  comes with Microban antimicrobial product
  protection built in
• Exclusive 10-year partnership with Microban
• Lucite introduced Microban to the spa industry
  in 1998
• Since that time, every new Lucite color has had
  Microban antimicrobial product protection
• Now, Lucite has reverse engineered classic
  colors to incorporate Microban

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The Microban difference

• In an unprotected spa, bacteria can double every
  20 minutes

24 Hours of Exposure Between Cleaning
Protected by Microban Technology
Unprotected
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Consumer demand for Microban
Currently in use in more than
750 products around the world.
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Microban brand awareness
Aided Awareness U.S Population
Source Gallup, United States, 2008
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Consumer demand for Microban

• Over 60 of respondents say products with
  antimicrobial protection are worth paying a
  little more for.

Source Gallup, United States, 2008
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Top national brands are using Microban
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Groundbreaking
Environmental
Product Innovation
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Lucite has a strong
history of innovation.
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Lucite is a solutions provider
Problem
Historically, spa reinforcement products
and processes have been dirty, labor-intensive and
environmentally-unfriendly.
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Lucite is a solutions provider
Solution
Strategic RD partnership.
2 new patent-pending products.
A Styrene-free solution.
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A Better Bond

TSE-EcoSpray resin
LuciteBB cast acrylic sheet
New patent-pending acrylic formulation
New patent-pending polyurethane resin spray
One does not work
without the other.
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A Better Bond
LuciteBB
TSE-EcoSpray
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A Better Bond

• New Styrene-free and environmentally preferred
  spa reinforcement solution.
• Does not sacrifice fundamental properties
• Adhesion
• Tensile Strength
• Flexural Modulus
• Tg or Softening Point

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Key Features for TSE-EcoSpray LuciteBB

• Chemical adhesion to Lucites patented LuciteBB
  monolithic cast acrylic sheet and Lucite Xtra
  co-laminated sheet
• Comparable tensile, flexural, impact, Tg
  properties vs. vinyl ester/Styrene ester
  laminates
• Ultra-Low emitting resin during spray
  application
• ANSI Z-124 Certification
• Ready-to-use, flame retardant polyurethane resin
• Low Exotherm lt 140 ºF
• Neat / Chop build schedule reduces rolling and
  labor
• No Shrink

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Key Benefits TSE-EcoSpray LuciteBB

• Styrene free
• Eliminates Title 5 Permits
• Eliminates employee exposure to styrene monomer
  MEKP
• Eliminates process area fence line odors
• Non-flammable reduces risk of fires
• Lighter Weight Parts 15 reduction
• Faster processing with less WIP and space
• Can be used with both LuciteBB cast acrylic and
  Lucite Xtra co-laminated sheets

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PU Competitive Comparison NEAT RESINS
Note Results are for resin without glass and
with a fast setting gel time. Competitive results
are from technical literature from each supplier.
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TSE PU versus Filled Polyester
(w/ Chopped Glass)
Filled Polyester Tensile 39-51 MPa Ten.
Mod. 7-7.9K MPa Flexural 81-107
MPa Flex. Mod. 6-7.6K MPa Impact Notched
24 Kj/m2 Unnothced 31 Kj/m2 Tg
95C HDT
164C
TSE-EcoSpray Tensile 50 MPa Ten. Mod.
7,680 MPa Flexural 98 MPa Flex.
Mod. 6,280 MPa Impact Notched 27
Kj/m2 Unnothced 37 Kj/m2 Tg
138C HDT 233C
Physical Property Comparison
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Adhesion to Acrylic (ASTM C297)
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Adhesion to LuciteBB (ASTM C297)
100 Cohesive Failure in Laminate gt2,300 PSI
100 Cohesive Failure in Substrate gt2,100 PSI
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Adhesion to Acrylic (MIL P 25690B)
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Adhesion to LuciteBB (MIL P 25690B)
100 Cohesive Failure in Laminate gt4,100 PSI
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In-Process Photos
TSE-EcoSpray Resin with Glass Roving Application
TSE-EcoSpray Neat Resin Application
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Application Equipment
MVP Pro Spray Gun with Chopper
Non Atomizing Spray Technology
MVP DUO Spray Equipment
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In Closing

• TSEs PU resin provides an alternative backing
  technology that provides an environmentally
  preferred solution without sacrificing the
  fundamental properties required to ensure the
  highest quality finished product, such as
  adhesion, tensile, flexural, and Tg.
• TSE and Lucite are committed to helping those
  organizations that truly want and/or need to
  convert from their current resin system to TSEs
  100 solids, styrene-free polyurethane resin and
  either Lucite BB (monolithic acrylic) or Lucite
  Xtra (co-laminated sheet).

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In Closing (continued)

• With the commitment and leadership from Spa and
  Bathware companies' to convert to an
  environmentally preferred solution, together with
  TSE-EcoSPRAY resin and Lucite BB or Lucite
  Xtra, we can and will
• prevent styrene monomer exposure to our work
  force and surrounding communities
• eliminate the need for incinerators and pollution
  abatement associated with spraying styrenated
  resins
• avoid the need to transfer FRP production away
  from the US as styrene emission and workplace
  exposure limits continue to be tightened, which
  will help protect North American jobs in the spa
  and bathware industries

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Eliminating Styrene is good for the environment
and good for business

• Industry is looking for ways to reduce
  environmental impact
• Styrene is harmful to consumers, employees, and
  the environment
• A top 10 air polluting chemical in the United
  States
• Highly volatile and flammable, listed as a VOC by
  the EPA
• Classified as a possible Carcinogen by the
  International Agency for Research on Cancer
  (IARC)
• Classified in EPAs Toxic Release Inventory (TRI)
  as a Carcinogen.
• Classified as a Photochemical Ozone Creator
  (ozone is highly reactive and is known to affect
  human health, crops and forests)

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Thank You!