Sales Presentation October 28, 2003

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www.hammondexpanders.com
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Agenda

• Who is HGI?
• What is the history of Hammond Expanders?
• What is expander?
• How does it work?
• Why should you outsource expander?
• Why should you buy from Hammond Expanders?
• How can you save additional money?
• Where do we go from here?

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Who is HGI?

• Halox Anti-corrosive pigments
• Halstab Plastic stabilizers
• Hammond Lead Products Lead chemicals for
  batteries and glass
• Total Transportation Transportation systems
  provider
• Hammond Expanders Additives for lead acid
  batteries

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What is the History of Hammond Expanders?

• Over 60 years experience
• World leader in technology
• State-of-the-art laboratory
• Active in RD for negative expanders
• New manufacturing facilities in the USA and UK

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What is the History of Hammond Expanders?

• Produces negative expander for all of the major
  battery manufacturers

• Johnson Controls
• Delphi
• Enertec
• East Penn
• Trojan

• Yuasa
• Fiamm
• Douglas
• Enersys
• U.S. Battery

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What is expander?

• Barium Sulfate
• Lignosulfonate
• Carbon Black
• Wood Flour
• Soda Ash
• Graphite

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Expander production

• Principal method of manufacturing
• Ball milling

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How does it work?
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Barium Sulfate

• Promotes formation of small crystallites of lead
  sulfate during discharge.
• Prevents passivation of the active material by
  lead sulfate.
• Recharge of the lead sulfate is facilitated.

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Lignosulfonate

• Increases surface area of NAM
• Stabilizes the active material structure

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Carbon Black

• Increases the conductivity of the NAM.
• Improves initial formation.

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Why should you outsource expander?
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Why should you outsource expander?

• Lets you do what you do best make batteries

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Why should you outsource expander?

• Save money by reducing
• Inventories
• Material costs
• Maintenance costs
• Capital outlays

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Why should you buy from Hammond Expanders?

• Technical Advantage
• Operational Advantage
• Economical Advantage

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Technical Advantage

• Quality control
• ISO 90012000 certified
• Continuous research
• Technical support

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Technical Advantage
New quality control laboratory
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Technical Advantage

• ISO 9001 certified quality system since 1999

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Technical Advantage
New battery laboratory
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Technical Advantage

• Research and development
• New products
• New materials
• ALABC

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Technical Advantage

• Hammonds electrochemical testing ability

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Technical Advantage

• Analytical test equipment
• Particle size analyzer
• UV spectrophotometry
• DSC
• TGA
• Surface Area and Porosity (BET)
• ICP
• X-ray Diffraction

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Typical DSC/TGA Chart
Technical Advantage
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Technical Advantage

• Technical support
• Expander selection
• Service to industry
• Technical papers
• Customer support
• Problem solving

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Why should you buy from Hammond Expanders?

• 1. Technical Advantage
• 2. Operational Advantage
• 3. Economical Advantage

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Operational Advantage

• New Manufacturing facility
• Standardized equipment
• Simplified process flow
• Minimize cross-contamination
• Separate industrial and automotive production
  lines
• Off-load smaller volume products
• Worldwide coverage
• Plants in the USA and UK
• Shipping worldwide

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Why should you buy from Hammond Expanders?

• 1. Technical Advantage
• 2. Operational Advantage
• 3. Economical Advantage

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Economical Advantage

• Economies of scale and scope
• Raw material purchasing power
• Ability to call on HGI resources
• Focus on simplified product flow
• Reduces manufacturing costs
• Reduces the cost of quality
• Lowers inventories
• Commitment to continuous improvement

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Economical Advantage

• No overhead costs
• No RD costs
• Low component cost and Hammonds technical
  ability yields high value.

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Economical Advantage

• Pre-weighed disposable paper bags allow easy and
  clean batch introduction
• Keeps your plant clean!

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How can you save additional money?

• Standardize automotive expanders to Hammonds
  proprietary HE-631
• Standardize industrial expanders to Hammonds
  proprietary HE-5.5

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Where do we go from here?
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Thank you
www.hammondexpanders.com