Ahlstrom overview

1. Advancement of Medical NonwovensSeminar on Medical TextilesOpportunities & Applications6th September 2008MaduraiOrganized by:Ministry of TextilesGovt. of India.Presented by:Ajay SahniSenior Business Development ManagerAhlstrom Fibercomposites India Pvt Ltd.

2. Headquarters in Helsinki, Finland Global network of fiber specialists serving niche markets worldwide Group net sales in 2007 of approximately EUR 1.8 billion 5700 employees worldwide Home Ahlstrom overview

3. We are the world leader. The biggest name in fiber-based specialty materials.The widest range of cost-effective solutions.The longest track record in the industry. Home

4. Our knowledge benefits many sectors • Healthcare • Environment • Automotive • Packaging • Homes • Offices

5. Ahlstrom’s global network of operations Sales offices Affiliated production units Production units Head office Finland Australia Japan Belgium Korea Brazil Russia China Singapore Finland South Africa Great Britain Spain Germany India Taiwan Indonesia Thailand Italy USA Finland Russia Belgium Korea Brazil Netherlands China Norway Estonia Poland Finland Russia France Spain Germany Sweden Great Britain USA Italy International office France Ahlstrom Research Corporate Center France Joint venture production units USA

6. Global leader in medical nonwovens globally Broadest technology offering of any Nonwoven producer Research focus on fiber management & web formation Customer satisfaction survey rated #1 in quality & service OVERVIEW

7. Medical applications • Drapes • Gowns • Sterile Barrier Systems • Face mask cover stock

8. Ahlstrom Invests in INDIA • Ahlstrom, a global leader in high performance fiber-based materials will invest EUR 38 million in a new medical nonwovens plant utilizing spunmelt technology in India. The investment is in line with Ahlstrom's strategy to grow in the fast growing emerging markets.The new plant will manufacture a full range of spunmelt fabrics with a main focus on the medical fabrics & hygiene. • The new facility, using state of the art nonwovens technology, will be located in the Mundra Special Economic Zone (SEZ) in the western state of The plant will start its production in last quarter of 2009.

9. Why Nonwovens ? Need for Infection Control !! • ± 1800 : about 60% of the patients died of hospital fever • ± 1867 : Lister was one of the first who acknowledged cross-infections, aseptic technique. Reduced morbidity to 1.5% • Today, we are still talking about infection control. Cost of Hospital Infection in England alone is 1 Billion pounds and 5000 deaths. • Advent of super bugs such as Avian Flu, AIDS, Hepatitis makes infection control a high priority.

11. Why Nonwovens ? Need for Infection Control !! • Use of disposable nonwoven medical fabrics plays an important role in reducing hospital infections. • A study by Moylan indicated that single-use nonwoven products reduced infection by 2.5X compared to traditional textiles. • A study by Werner showed that 56% of reusable textiles had significant defects that could sacrifice their performance

12. . Why Nonwovens ? Need for Infection Control !! High barrier/Protection • Traditional textiles are typically absorbent. • Nonwoven fabrics are engineered to have high barrier. • Re-usable textiles can develop tears and holes during the washing process.

16. . Why Nonwovens ? Need for Infection Control !! Low Linting • Lint is a source of infection since bacteria can use it as a carrier • Re-usable generate lot of lint during washing process. • Nonwoven fabrics typically have low lint

18. Why Nonwovens ? Need for Infection Control !! Proven Sterilization Performance Nonwovens are compatible with multiple sterilization methods such as steam, ETO,gamma (depending on composition)

19. Why Nonwovens ? Need for Infection Control !! Comfort/Conformability • Comfort critical for gowns • Nonwovens have good breathability • Conformability imp. for drapes • Nonwovens are flexible/soft

20. Why Nonwovens ? Need for Infection Control !! Single Use and Economical • Various studies indicate that when total costs are calculated single-use fabrics are generally lower cost than re-usables.

21. Why Nonwovens ? Need for Infection Control !! Meets New Regulatory Standards • AAMI PB 70/CEN standards for drapes and gowns • EN 868-1 and EN 868-2 for sterilization wraps • Additional standards for face mask and protective clothing

22. Least Protective Most Protective AAMI Classification System • There are four levels of barrier performance, level 4 being the highest protection available • AAMI - Association for the Advancement of Medical Instrumentation

23. General relationships between barrier performance and anticipated exposure risks Anticipated Risk of Exposure

24. General relationships between barrier performance and anticipated exposure risks (cont.) Anticipated Risk of Exposure

25. 4 3 1 & 2 FDA PB-70 Standard Product offering that meets Regulations • Good protection level for cost • Different fabrics for the AAMI levels 1-4 (US Regulations) Surgical Gown Market Ahlstrom BVB; Film re-inforced Ahlstrom SMS Spunlace; Wetlaid; Spunbond 25

27. What do we do till standards come in India ? Do Hospitals need to put specifications for procurement ?

28. Indian Market Trends • Single-use disposables have started getting recognized. • Face mask, head covers and shoe covers primarily disposable. • Private hospitals are beginning to use disposable drapes and gowns • Spunbond is widely used which provides little barrier for most applications • No standards for medical disposables; Quality is poor

29. Conclusions • Significant Marketing & Education effort needed to increase awareness • Single-use / Disposable pricing is a key factor in decision making • Indian Medical market provides an excellent opportunity for growth due to its large population, increasing affluence and a good healthcare system.