1. © Copyright 2003 Frost & Sullivan. All Rights Reserved. North American Fire and Smoke Detection Devices Markets Consolidation Benefits Large Companies at the Expense of Smaller Firms HVAC/Building Controls “Consolidation has become the key strategy to expand product portfolio, strengthen distribution channels, and increase market penetration in the fire and smoke detection devices industry in North America.”

2. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Major Challenges Consolidation in fire and smoke detectors industry restricts smaller firms’ ability to compete Competitive pricing strategy is key to market success Declining price of mature product segments forces manufacturers to concentrate efforts on reducing costs Entrance of related industries threaten market share Electronic heat detectors limits growth of mechanical heat detectors

3. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Major Drivers Low interest rate trend encourages additional capital investment Municipal fire codes mandating the use of fire detection devices inspires demand New building construction strengthens the demand for fire and smoke detectors Replacement of older equipment drives demand Growth in certain end-user segments boosts revenues Increasing acceptance of flame detectors as life safety devices expands market potential Increasing price-performance ratio drives product demand

4. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Major Restraints Emergence of fire sprinklers restricts growth for fire and smoke detection devices Weakened economic conditions in the United States retards growth Limited end-user applications for heat detectors impacts growth New technology hampers future demand for fire and smoke detectors Shift of semiconductor industry to Asian countries impacts growth

5. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Industry Trends The fire and smoke detectors market is strongly driven by building codes, new building construction and the renovation of existing buildings Increasing market recognition as a life-saving device Although the general technology in the smoke detectors market has not seen much change, there has been improvements in the sensors used for detecting smoke The smoke detectors market is likely to see increase in demand of photoelectric smoke detectors Triple IR type flame detectors are expected to replace other types of flame detection technologies

6. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Detailed insights into recent developments and trends Drivers, restraints, challenges, and strategic recommendations Market sizing and competitive analysis Market forecasts and opportunity analysis End user analysis within each report

7. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: North America Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Credible data and analysis highlighting industry dynamics

8. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Who Will Benefit?  Current Market Participants  Find out how you compare to the competition  Assess current and future drivers and restraints  Determine and exploit new market share opportunities  New Entrants  Analyze challenges associated with the industry  Position yourself to capitalize on the market’s unmet needs  Investment Community  Determine which participants will outperform the competition  Assess attractiveness of investing in power management ICs

9. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What’s Included North American Fire and Smoke Detectors Market Smoke Detectors: photoelectric, ionization, duct and beam Heat Detectors: mechanical and electronic Flame Detectors: single UV, UV/IR, dual IR and triple IR

10. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Air Products & Controls, Inc. Chemtronics Detector Electronics Corp. Detection Systems, Inc. Edwards System Technology, Inc. (EST) Fire Detection Devices Ltd. Fire Sentry Corp. General Monitor, Inc. Gentex Corp. Hochiki America Corp. Key Market Participants Scott/Bachatach Sentrol (GE) Siemens Building Technology – Fire Safety Division (Cerberus Pyrotronics) Sierra Monitor Corp. Sierra Safety Technology, Inc. Spectrex, Inc. System Sensor The Protectowire Co., Inc. Tyco Simplex Grinnell Vibro-Meter, Inc. (Meggit Avionics)

11. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Related Frost & Sullivan Titles North American Fire and Smoke Detection Equipment Market – 7201-19 North American Fire Alarm Panels Market – 7441-19

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