XL8525 and XL8525D, 10’ Stand-out Tapes

• Current Market Situation– Stanley Fat Max retails for $20 to $25, depending on channel and location. – Distributor and retailer pricing for XL8525 will allow retail pricing between $10 and $15. – We have opportunities to displace Stanley based on price and value / performance. – User input indicates that Xtra-Long stand-out is the #1 priority for power tape users. – Feedback from users at Home Depot Contractor Trade Shows in early 2007 indicate a

strong willingness to try our new tape measure.

Stanley 33-725 retails for 1.5 to 2x the proposed retail pricing for Lufkin XL8525

XL8525 and XL8525D, 10’ Stand-out Tapes

• Retail Analysis - Stanley Fat Max pricing– Home Depot

• $19.96 – Lowes

• $19.98 – Ace Hardware (on-line)

• $21.99 – Do It Best Hardware

• $19.99– WalMart

• $19.97– Menards

• $ 19.96

XL8525 and XL8525D, 10’ Stand-out Tapes

• Industrial Pricing Analysis - Stanley Fat Max pricing– Average Market Price - Industrial Channel

• $23.99 - $24.99– MSC

• $29.76 on-line• $23.99 promo

– Grainger• $26.85• $21.48 to $25 promo

– White Cap Supply• $19.99

– Drago Supply• $22.77

XL8525 and XL8525D, 10’ Stand-out Tapes

Features and Benefits4-rivet reinforced end hook - increased durability

Blade designed for Xtra-Long 10’ stand-out - reach farther, work smarter rather than harder

Clearcoat blade protection - more durable markings

Unique longer and wider spring - fast blade retraction speed saves time on the job site

Easy on/off belt clip design - speed and convenience

Co-molded rubber on case cushion absorbs impact and improves grip - improved comfort

Co-molded slide lock button - increased comfort

XL8525 and XL8525D, 10’ Stand-out Tapes

• Product Offering– XL8525 - 1 3/16” x 25’ Power Tape– XL8525D - 1 3/16” x 25’ Power Tape– Packaging:

• Shelf = 4 pack MP tray with lift-off top • Case = 8 (2 MP trays in a master carton)

• Pricing– Distributor Net = US$7.60, C$8.94– Suggested User = US$15.20– Suggested Retail (Canada) = C$19.86

XL8525 and XL8525D, 10’ Stand-out Tapes

• Who would use this tape?– Framers– Remodelers– Roofers– Carpenters– Drywallers– Electricians– Serious Do-It-Yourselfers– Window & Door Manufacturers & Installers – Glass Repair & Replacement Installers

– Anyone who needs extended stand-out and wants value!

XL8525 and XL8525D, 10’ Stand-out Tapes

• Support Materials– Brochure # 550634– Data Sheets

• US Hardware 550635• US Industrial 550636• Canada 550637

– PowerPoint (on CD-R)– Sample tape included in launch materials