K-12 Market Session

1. K-12 Market Session 2004 KI Intl. Sales Meeting

2. KI’s Position in the Market • #1 – Virco • #2 – KI Artco-Bell • #3 – Scholarcraft • #4 – Highly fragmented

3. Market Segmentation KI…the one source for innovative educational solutions!

4. Emmanuel Christian Academy

6. Kernan Middle School

8. Who Ya Gonna Call? Always maintain contact with A&D : www.schooldesigns.com

9. K-12 Market Landscape • Continued enrollment growth • Tight fiscal environment • Growing uneasiness about current educational methods and a search for new approaches • Shift from teacher as the “teacher” to being the “facilitator” • Collaborative learning

10. Key 2004 Statistics • Sales: $48 mil. • Growth: 12% • Facetime: 2.5% • Market Bonus: N/A

11. Major 2004 Initiatives • Reinforce KI’s leadership reputation • Aggressive advertising campaign • Case histories at “great” schools • Focused Dealer Recruitment Efforts - Districts - Sulima - Lowe - White - Strack • Turner - Rier • Focused Dealer Penetration Efforts • Offer new “Premier Dealer Program” to K-12 dealers to help attract and retain the best ones • Product Launches: - Uniframe Convertible Bench

12. K-12 Products!

13. Intellect Two Piece Glides Be able to: Professionally convey these options to your customer. Provide a solution for problematic sites!

14. Intellect Two Piece Glides Floor Marking @ 2% of installations. 98% of installs are OK (or on carpet). February two piece glides will be available for problem sites. Q2 two piece glide standard with black cap..other caps as up charge options.

15. Intellect Two Piece Glides Glide Options: Nickel Plated Steel White Nylon Black Nylon (standard) Felt Based (not shown)

16. Intellect Two Piece Glides

17. KI Convertible Benches

18. KI Convertible Benches Be able to: Position the product against the competition. Describe and understand the key benefits, advantages and features of the convertible bench. Professionally demonstrate the operation of the convertible bench.

19. KI Convertible Benches The Basics: Fully manufactured in China Priced and shipped FOB Tupelo, MS 10 Year Warranty Orders can be entered as of February 9th Product Shipments begin May 3rd

20. KI Convertible Benches The Basics: Product ships Knocked Down (KD) Assembly time is approximately 10 – 15 minutes Black Frames Only Tops in Hardrock Maple, Walnut and White Silica Edge in Vinyl Bullnose Only (for now)

21. KI Convertible Benches The Basics: Price lists available today Specification Sheets – February Sell sheet – April Rep Samples – May

22. KI Convertible Benches • Three operating positions: • As a Bench The Basics

23. KI Convertible Benches • Three operating positions: • 2. As a Table The Basics

24. KI Convertible Benches • Three operating positions: • 3. As a Classroom The Basics

25. KI Convertible Benches Benefit: Clean, sanitary seating solution. Advantage: Smooth, easily cleaned work surfaces. Features: Secure attachment screws from the underside of the seat.

26. KI Convertible Benches Benefit: Safe, smooth stable mobility. Advantage: Wheels track straight improving reconfiguration time and reduce damage. Features: Large 4” casters for durability and performance.

27. KI Convertible Benches Benefit: Multiple uses from single product. Advantage: Create tables using two benches. Multi Tasking! Features: Solid metal, heavy duty ganger securely attaches two bench units together.

28. KI Convertible Benches Benefit: Improves perceived and real safety issues in the cafeteria. Advantage: Provides level of security for product performance. Feature: Registered for safety and stability.

29. KI Convertible Benches

30. KI Convertible Benches Demonstration and Operational Techniques

31. KI Convertible Benches Sales Rep Presentations…..

32. Hard Plastic Colors Corex closed in September and assets bought by Virco. No Supply worries for 2004 Some color changes

33. Questions & Discussion