Presentation to bt 2 Steering Committee Meeting August 11 th , 2008

1. Presentation to bt2 Steering Committee MeetingAugust 11th , 2008

3. Accomplishments Since Last Meeting • Cedar Hill 100% on Oracle primarily with local resources • IVR Implemented at Cedar Hill for self-service customer inquiry • PPM (Object Deployment Tool) implemented • Decision made to use iStore for customer ordering solution • Completed Nomenclature Definition • Formal sign-off in progress

4. Action Items from Previous Meeting

6. BCG Key Success Metrics - MBP’s • Project Milestones • Release 1 1.00 (+.00) • Release 2 .99 (+.00) • Release 3 .35 (-.20) • Benefits • Post design roll-up will be delayed until later in 2008 • Voluntary Turnover • Will see impact of two in August • Team Member Satisfaction • Will release new survey the week of 8/11

7. Milestone at risk; action plan / work- around in place Major milestones on track G Y Will miss milestone; significant issues R Release Status as of 8/11/2008

8. Release 2 - Stabilization Plan • Paper Process Flow • MATO changes implemented • Changes made for most accessories – still working high movers and hinge items • ERP’s, BERP’s, TERP’s Flow Improved – working Miter transfers • Open Oracle Issues (see next slides) • Order Entry Timing • Daily volume is being maintained, but with added resources and • Consistency of timing improved since last meeting (7-8 sec) • IVR in place to reduce call volume • Improved infrastructure elements • Future Changes • Batch & Release process instead of continual changes

9. Top Oracle Incidents by Product We have raised 602 SR’s with Oracle (33 Severity 1) Average of 3.4 per day from Feb 2008 to present

10. Release 2 - Current Oracle System Issues • ASCP Planning • Memory based planner error with generation of the plan - out of memory error (7017890.993) • Workaround – shorter planning horizon • Month End • Cannot submit the pending resource transaction via form (7017890.993) • Cost Invalid WIP: The WIP entity is either not defined or doesn't have a period balance entry(6989023.994) • Solution working for all but 3 transactions, nearing closure • Configurator • Response time from configurator is slow (6939787.994) • Pricing call quits working on a single model for a single user, and spreads to multiple models for multiple users within a few hours (New) • Saving a configured model from order management throws underflow exception (7102978.992) • Sign On • EBS users are getting expired accounts due to OIM not updating password_date (6988049.994) • Patch received

11. Release 2 - Team Exit Strategy bt2 is treating stabilization as priority one across all teams with Release 3 activities and replanning as the second highest priority • Current Resource Plan – Week to Week • Week of 8/4 • Full support team – spent much of the time away from the floor • Week of 8/11 • Reduce DTS by 2 Resources • Exit Criteria • Late shipments below 30 orders • MAtO solution clearly working • Accessory changes made to move to WIP process • OTM errors on orders eliminated for “ignore for planning” and trending positively for weight errors • OTC at 95% • Capability to enter 400 orders per day

14. Key Issues – Release Three+ • Release Three • Converting items, bills, and routings • Development resource availability • Staffing BCG roles • Large extensions • IntelliQuote replacement design • Incomplete functional specs • Role mapping • Multiple releases – resource availability and instance management • Stellent implementation Doc-Link integration needs to be completed • Competing priorities for Mt Sterling – need joint planning sessions • Scope reality check • Release Four + • Definition of BCG models • Model build • Brand identity definition • Customer Facing solution – iStore versus other options to replace EZCab and M2OE • New: Catalogue development

15. Lessons Learned The bt2 project team leads indentified key lessons learned that need to be considered for future roll-outs: • Internal Team • Stricter Entry/Exit Criteria for Integration Test and UAT • All critical go-live RICEW elements & boundary applications must be tested in Integration Test, including reports • Timely completion of specifications & RICEW objects • Prep Test for UAT is a must before bringing in users; this needs additional prep week between Integration Test and UAT • Last minute design changes must be avoided; if additional design changes come in, the plan needs to be revisited • Code Freeze needs to be in place prior to cut over • Organize teams by implementation not by process • Run CRP to validate design & improve handoff’s between teams • Run operational verification processes in conjunction with testing (long before UAT) • Extended team • Begin data clean up earlier, run more test conversions and use converted data in integrated testing • Bring in users early and often to review/test process designs • Bring in users early and often into testing • Transfer operational ownership earlier in each roll out

16. Key Project Plan Elements • Release Timing • Minor release for RMP and RMF at DVC • Implement mill operation with related Assembly Operations – Mt. Sterling and Duncanville • Mt. Sterling go-live with revised plan • Branch go-live to be “Oracle Lite” • Release 4 components must progress • Resource Plan • Need immediate additional BCG leadership in DTR • Will organize into Solutions Team and Deployment Team after Release Three Integrated One Testing • Need to identify dedicated resources for each stream of work • Deal with areas where resource conflicts exist • Bringing in more SME help up-front • Mt. Sterling/Duncanville Cabinets: Common design and signoffs • Branches: PIT Team Members • Ocala: Identify Resources • Add up to 10 “Fresh-Outs” • Identified bottlenecks and also “hands and feet” needs

17. Key Project Plan Elements • Transfer Ownership of SME activities to business leadership • Data Cleansing • Site Readiness Preparation • IS Consideration • RICEW completion • Instance Strategy • IS Infrastructure to Support Production • SOX Considerations • Mt. Sterling go-live will be next year • Production Support Considerations

18. Items that have impacted the schedule • Longer than expected Cedar Hill Stabilization • The revised schedule takes us into the year-end holidays and end of quarter • Work on Release 3 slowed during Integrated Test 1 for Release 2 • Release 3 was already falling behind as we started pulling additional resources for Release 2 • Understanding that implementations would be “all hands” for several weeks

19. Major Schedule Activities MCS Branch November 2008 First Assembly Plant January 2009 Complete Quality March 2009 First Merillat Plant May 2009

20. Cost Impacts • Capital versus Expense • Assumption has been “Complete Model” is the asset • Finance • Component Plant • Assembly Plant • Branch • Based on timing being extended beyond a couple of months we are working through the fact set for this definition, the output of which may change when we start depreciation and how costs are bucketed • Assumption for the forecast is that capital activities will continue until first deployment of branch and assembly plant • Longer time to deploy Release 3 is a large impact • Consulting costs are the main driver of additional cost to budget

21. Cost Impacts Approved Budget $57.2M SABRIX .4 MCS Branches 2.0 TFI Analysis .2 Total Added Scope $2.6 Revised Budget $59.8M Revised Forecast $62.0M

22. Total Project Impact

23. 2008 Impact

24. Remaining Planning Activities • Expand plan to include all facilities • Remaining Merillat Brand assembly plants • Merillat Brand Component Plants • BCG Branches • Configuration for Mt. Sterling and Duncanville • Complete resource planning and execute • Reorganize teams • Team organization remains the same through September • After Integration Test, break off solutions team to work on future releases • Deployment teams take over responsibility for individual deployments • Solutions team assists in implementations • All hands on deck immediately before and after go live

25. Items Eliminated or Deferred • Deferred • Sabrix (was added to scope) – will be in Release 3 • AME Invoice Workflow Approval – nearing completion • Stellent (deferred) – may use first for Engineering Documentation • Implementing R-File and DocLink • IntelliQuote – object in testing, but will be deployed in Release 4 • Removed • Financial Analysis Tools – will utilize HFM from MASCO • Fusion Intelligence for BI – DBI and Complete BI added • Aligned Chart of Accounts with MASCO • Full implementation of Oracle Access Manager (not in initial scope)

27. Customer Ordering Solution • The team was deadlocked on direction for the customer facing ordering solution. Decision matrix indicated full custom, but some on the team struggled with implications. • Options Considered • Option One – use iStore with custom user interface • Option Two – full custom solution • Met with Karen and held demo with external customer • Decision made to utilize iStore as solution with customers. • Still working through impact on internal solution – will likely be developed from Lot Management / IntelliQuote designs

28. Option/Attribute Nomenclature • Finalization meeting held with key stakeholders • Formal sign-off is being collected for both SKU’s and Global Attributes • Number of models will be near 1,000

30. Action Items from This Meeting

32. Appendix • Content • Internal Staffing Changes • EVD Description and overall timeline • Scope Change Management • Issue Metrics • Risk Management

33. Staffing Update • 25 of 30 positions filled for “business roles” • Mary Seeburger transferred to Finance • To Date Resignations • 2007 Joe Oddo OTC Team • 25 out of 26 positions filled for “IS roles” • Pramod Sharma added as Oracle Developer (Aug) • David Kallsen will move to AP Supervisor Role (Aug) • To Date Resignations • Feb 2008 Christine Flamm Systems Architect • Mar 2008 Steve Hester OTC Process Manager • Jun 2008 Godfrey Chinomona OTC Bus Analyst • Aug 2008 Randy Guinn Unix Admin • Aug 2008 Patty Jones Developer (Doc Link support)

34. Business Transformation Timeline We are here Q3 2007 Q4 2007 Q1 2008 – Q4 2009 Finance Go Live, April 2008 – Operations Pilot, July 2008

35. bt2 Build Phase Activities Vision Plan Design Build Deliver Operate The purpose of this phase is to develop needed RICEW elements defined in design, put in place the software and hardware environment, prepare learning materials, and test the solution. Support Leadership Monitor Change Readiness Deliver On Going Communications Support Stakeholders People, Change& Learning Conduct Change Impact Assessment Design Performance Management Process Develop Organization Strategy Transfer Capabilities Develop Performance Management Strategy Develop End-User Learning Program Processand Package Configure Software Develop Functional Test Work plan Build Cutover Develop Functional Test Materials Conduct Functional Tests Support Non-Production Environments Conduct Technical Tests Design and Build Batch Schedule Procure Production Hardware Information Technology Build and Test Production Environment Build Software Development Programs Develop and Test Process Controls Develop and Test Interface and Data Migration Controls Build, Install and Configure Technical Security Infrastructure Develop and Test Information Technology Controls Securityand Controls Define Technical Security Infrastructure Policies and Procedures Develop and Test Production Application Security Test Technical Security Infrastructure Test Production Application Security ProjectManagement Plan Project Execute Project Control Project

36. Scope Change Management Change Request Status • Approved Requests Since Last Meeting • Yang Sheng Wong – Extension • Document Management • 2 New Discoverer Reports • OTM Resource

37. Issues Management

38. Risk Management • Risk Management Status • Continued work on mitigation plans

39. Risk Management