2007 Product Training & Sales Meeting

1. 2007 Product Training& Sales Meeting Presented by Jim Molloy January 2007

2. Outline • Introduction & History of ProTech Systems, Inc. • Why Special Gas Venting? • Product comparison • How to sell PTS products • The PTS website • How to set up a new customer • How to maintain a customer • How to use the PTS marketing assistance program • New Products

3. Introduction & History

4. Introduction & History • Brief History • Key Personnel • Manufacturing • Supply Chain Management • Engineering & Design • Innovation • Back-End System • Customer Service • Growth

5. Brief History • ProTech Systems, Inc. • Leaders in Venting Technology • Chimney & PHVAC markets • Founded in 1985 • VENTINOX® • Created in 1980 by Martin Wawrlafor his own home’s condemned chimney • The first UL®-listed chimney lining system • Top-performing chimney liner • FasNSeal® • Special Gas Vent introduced in 1996 • Inclusive kits give installers and distributors what they needin fewer boxes, and in less space • Easy to assemble, easy to take apart • faster installs, fewer mistakes, easier to adapt and maintain

6. Martin Wawrla,Founder, President/CEO Masters Degree from University of Vienna, Austria in 1974. Over 30 years of venting innovation experience Dedication to quality reflected in all areas of business Susan Dakin,Director, Human Resources 20 years HR experience at Mark Goodson Television Productions Finds the right people for the right jobs, providing PTS with an exceptional workforce Principals

7. Management Team • Jeff Hurlburt, Plant Manager • Oversees manufacturing & engineering • Meet deadlines & develops product innovations. • Rick Cline, Controller • Manages finances & oversees investments. • Guides PTS toward a bright financial future. • Jim Molloy, Director, Sales & Marketing • Drives our sales & marketing teams. • Streamlines PTS operations.

8. Cutting-edge technology Continuous planned investment in equipment Multi-axis laser The latest automated welding & cutting techniques Strict quality controls Smooth welded seams Easily-mating parts Gas-tight, water-tight,and sealed for positive pressure conditions CAD/CAM Fine control over manufacturing processes Manufacturing

9. Supply Chain Management • All-Inclusive Material Ordering, MRO, & subcontract Management • Mike Foglia, Materials Manager • Purchasing • Inventory Control • Technical Assistance

10. Full line of precision-engineered components Available in double walland single wall Full line of adapters Designed for fast installation 1. Insert; 2. Tighten; Done! Designed with safety in mind! Many advanced Venting technologies & features… Internal clamping Molded triple-sealdirectional gaskets Smooth welded seams Engineering Services Available Commercial CAD Drawings & BOM produced free of charge Custom designs available Quick response Engineering & Design

11. ProTech Systems: Leaders in Venting Technology • Adjustable Vent Lengths • Vent Kits • All FasNSeal® Kits are adjustable vertically or horizontally • Cold Weather • OEM Specific • Universal Condensate Drain workshorizontally or vertically! • Appliance Adapter with built-in Backflow Preventer and Condensate Drain • Directional triple-seal gasket

12. Exact Software’spowerful and versatileMacola Progression Suite General Ledger Accounts Receivable Accounts Payable Payroll Inventory Maintenance Order Entry Purchase Orders Bar Coding Back-End System

13. Jim Spiak, Sales & Marketing Coordinator Assists Director ofSales & Marketing Co-ordinates efforts with Sales Reps and OEM’s Customer Service Team Knowledgeable & Dedicated Product information Questions or concerns, technical or order-related Order processing Catalogs & literature Amy Dotzler Mary Krause Jennifer Haywood Rob Empie Customer Service

14. Growth • 1997 • Newly-built 26,000-square-foot office and manufacturing facility • 2005 • Second newly-built warehouse/plant next door • More expansion in the future! • Nearly 70 local residents employed at our Albany facility • Adding new state-of-the-art machinery! • More products and product lines in the works!

15. WhySpecial Gas Venting?

16. Why Special Gas Venting? • Effects of Carbon Monoxide (CO) • Home & Property Damage Potential • Category I, II, III, & IV Heating Appliances • Benefits of AL29-4C®

17. About 2,100 unintentional deaths per year Journal of the American Medical Association As many as 15,000 hospital visits per year US Consumer ProductSafety Commission Different concentrations and durations of CO exposure have different effects on the human body 12,000 PPM Death within 1–3 minutes 1,600 PPM Nausea within 20 minutes Death within 1 hour 800 PPM Nausea, convulsions, and death within 2 hours 400 PPM Headaches within 1–2 hours Life-threatening after 3 hours 50 PPM Maximum OSHA-allowed concentration for continuous exposure in any 8 hour period 9 PPM ASHRAE’s acceptable CO level for enclosed living spaces 0 PPM Desirable level Effects of Carbon Monoxide

18. Home & Property Damage Potential

19. Definition of Category I, II, III, & IV Heating Appliances • Category I (Natural Draft) • Non-positive vent static pressure • Vent gas temperature that avoids excessive condensate production in the vent (above 140° F) • Category II • Non-positive vent static pressure • Vent gas temperature that may cause excessive condensate production in the vent (below 140° F) • Category III • Positive vent static pressure • Vent gas temperature that avoids excessive condensate production in the vent • Category IV • Positive vent static pressure • Vent gas temperature that may cause excessive condensate production in the vent.

20. Heating Appliance “Cheat-Sheet”

21. Benefits of AL29-4C® • Superferritic stainless steel • Extreme resistance to effects of gas venting and corrosive condensates • Chloride ion pitting • Crevice corrosion • Stress corrosion cracking • General corrosion • Complies with the requirements of UL® 1738 when used with Category II, III, & IVgas-fired appliances

22. Gas-Fired Flue Gas Corrosion Results

23. Product Comparison

24. Product Comparison • N-Vent® by Noritz • Saf-T Vent® by Heat-Fab • Z-Vent® by Z-Flex • FasNSeal® by ProTech Systems, Inc.

25. Rubber o-ring Snap-in locking mechanism Difficult to disengage 3” clearance to combustibles Installed appliance would allow 2 ½” wall clearance To ensure proper clearance, appliance must be blocked Not made in America Tested, but unprovenin the field 12’ reduction per 90° elbow Not AL29-4C® N-Vent® by Noritz

26. Condensate can leak through joints (left)and cause property damage (below) Why an O-Ring Isn’t Enough

27. Double-lip non-directional gasket Tabbed locking mechanism Requires hand-bendingof sharp metal tabson female end After inserting tabs through ring on male end, tabs must be bent and pulled through until seam is tight If tabs aren’t pulled tight,seal may not be formed Hard to disassemble for repair or replacement of components Seams do not line up Tabs Saf-T Vent® by Heat-Fab

28. Double-lip non-directional gasket External locking band Crimps vent segments together Seams do not line up clamps Male end beads inward, no seating to female Z-Vent® by Z-Flex

29. External locking bands wrap around the outside of the female vent length end Requires a significant amount of pressure to compress the female end against the inserted male end Can bend, damage, or break the clamp or the vent length If vent length is bent or damaged due to locking band compression,seal may be compromised Drawbacks of External Locking Band

30. Triple-lip directional gasket Vent length easily slides in Significant adjustability Never needs to be cut Stop bead Easy to see when vent isfully inserted Easy to assemble, easy to disassemble Welded seam lines up clamps Internal locking band Requires only a standard screwdriver or nut driver FasNSeal® by ProTech Systems, Inc.

31. Simply holds male endin place Doesn’t require much pressure Faster, easier,& safer to install No bending, no crimping Gasket stays in place Seal is always maintained Benefits of Internal Locking Band

32. Selling PTS Products

33. Selling PTS Products • How to sell PTS products • How to set up customers • Ordering Process • How to Maintain Customers • The PTS Marketing Assistance Program • The PTS Website • The PTS Binder

34. How to Sell PTS Products • Know your market • Learn which distributors & installers to target • Know your audience • Tailor presentations to best fit your customers’ product lines • Know your product • Be able to answer questions promptly, and where to find resources to answer questions • Know your competitors • Track products and prices in the market • Show the benefits of installing PTS parts • Know what’s new • Product innovations, kits, and other new PTS releases • Carry samples and demonstrate the products

35. How to Sell PTS Products (continued) • Promote PTS vent kits • Fewer SKUs to stock a complete line of components • Faster, more convenient installation • Installer confidence • Promote specialized products • Innovations for foul weather conditions • New Foul Weather Rain Cap • New Severe Weather Kit featuring Universal Appliance Adapter with Condensate Drain and Backflow Preventer • Individually-tailored components for special situations • Adapters • Increasers/Reducers

36. How to Set Up Customers • Determine price level according to PTS guidelines • Offer to complete suggested initial stock orderfor distributor/purchaser’s review • Ask for the order! • Complete necessary paperwork & fax to PTS • PTS Credit Application • Sales Tax Resale Certificate • Purchase Order • Provide yellow-and-black binders, as needed • Follow up with your contacts! • Make sure the initial orders are placed & received • Respond to questions or concerns

37. Ordering Process • Purchase Order (PO) • Please reference quote numbers • POs are accepted fax or e-mail • POs are processed in the order they are received • Ship date is assigned upon order entry • Following ship date assignment, PO is confirmed to issuer • Expedite is available for a fee of $25.00 or 25% of total order, whichever is greater • Freight Terms • Orders shipped full freight allowed if order exceeds $4,000.00 net. • Orders West of the Mississippi River between $2000.00 and $4,000.00 net are shipped 50% freight allowed. • Orders shipped East of the Mississippi River are shipped full freight allowed if order exceeds $2,000.00 net

38. Ordering Process (continued) • Standard terms/allocations • Stock adjustment program available • Product 12 months old or less • Product in original packaging • Product in salable condition • Returns • Contact Customer Service for an RMA form. • Credits are not issued without an RMA • RMAs may only be issued on invoices 12 months old or less • 30% restocking fee

39. How to Maintain Customers • Keep all yellow-and-black binders current • PTS periodically issues new/updated literature • Perfect reason to visit the customers • Alert PTS of any customer-related issues • Address issues promptly • Most upset customers can become your strongest allies,if their problems are addressed promptly • Ask customers their wants and needs • Many new products come from customers’ suggestions • When a customer sees such a product made, it increases his/her likelihood of purchasing more PTS products

40. The PTS Marketing Assistance Program • Tell your customers about the PTS… • Coop advertising program • No-charge marketing assistance • Flyer design assistance, product images, ad slicks, etc. • No-charge sales literature • Distributor Support… • National advertising in trade publications • Trade show attendance • Product training sessions • Buying group memberships • The best technical help in the industry

41. The PTS Website • www.protechinfo.com • A convenient source for PTS sales& technical literature • Product information & catalogs • Technical bulletins • Installation instructions • Price lists (available only to authorized users) • Lists all PTS sales representatives & distributors • Sorted by state • Contact information

42. The PTS Binder • (Psst, Jim, open the binder & show ‘em what’s inside)

43. New Products

44. New Products & Product Information • Adjustable Vent Kit with 90° Termination • Severe Weather Kit • featuring Universal Appliance Adapterwith Condensate Drain and Backflow Preventer • Concentric Wall Pass-Through & Kit • Test Port • Takagi TV05 Termination Adapter • Branch Tee • Boot Tee • FasNSmooth®/FasNFlex® • Clearance to Combustibles • Installation Requirements

45. The FasNSeal® Competitive Edge • Manufactured by ProTech Systems, Inc.,Leaders in Venting Technology • Patented FasClamp Technology maintains shape and quality of vent, reduces installation times, and can be easily lined up throughout system • Patent-pending triple-seal gasket ensures tight, long-lasting seals • Time-tested (1986), corrosion-resistant AL29-4C® alloy used on all components exposed to flue gases • Smooth welded seams allow easy, safe assembly • No sharp tabs to cut your hands, no external clamps that can become damaged or warp the vent • Quick and clean installation using a standard screwdriver ornut driver, so installations are faster and more attractiveto homeowner • Advanced support from PTS’s highly knowledgeableCustomer Service Team

46. Compatible with many brands of wall-mountedTankless Water Heaters Paloma Rheem Ruud Wai Wela One Small Box Easy Inventory Easy Transport One SKU, Many Parts! Fast installation! Significant adjustability Many optional appliance adapters for easy, silicone-free installation Contractors love the versatility! Adjustable Vent Kit with 90° Termination

47. Accepts all standard PTS terminations Especially for use with Takagi Tankless Water Heaters Designed in conjunction with Takagi for use in areas frequently experiencing extremely cold, wet, windy weather conditions Includes the new Universal Appliance Adapter with Condensate Drain and Backflow Preventer! No need for external “dryer flap”—the backflow preventer is inside the vent! Allows for easy installation of an elbow for termination above the snow line Severe Weather Kit

48. One part, 3 functions! Fewer parts to order! Fewer parts to install, allowing for shorter runs! Integrated backflow preventer stopsair from flowinginto appliance Compatible with many makes/models of boilers and Tankless Water Heaters Universal Appliance Adapterwith Condensate Drain and Backflow Preventer

49. Why concentric? One opening through wallfor fast & easy installation! Available for wall-mounted or remote-standing boilers and water heaters Durable and resilient Concentric Wall Pass-Through & Kit

50. Test Port • Test positive pressure flue gas composition—without drilling through the vent! • Segment easily slides to reveal access port, and clamps shut tight to prevent accidental releaseof flue gases • Safe and secure. No drilling! No risk offlue gas or condensate leakage!