1. Lessons Learned Breakout Session AMT Global Forecasting and Marketing Conference October 2010 J. Brooks Reece Market Segments: SOE vs. Private

2. China is a big market –Same as USA –Auto components industry is more spread out than USA Adcole divides territory into four regions –North, Central, West, and South Auto OEM & components makers are located in each region –These are SOE/JV’s and Private companies China is a big market –Same as USA –Auto components industry is more spread out than USA Adcole divides territory into four regions –North, Central, West, and South Auto OEM & components makers are located in each region –These are SOE/JV’s and Private companies 2

3. Market Segments: Auto Cam/Crank Makers by region (Total 188) 3

4. Market Segments: Auto Cam/Crank by region / SOE (red) vs. Private (blue) 4

5. First Buyer Orders are important, even after 20+ years 5 Total orders

6. Market Segments: SOE, JV, Private: Private Company orders are growing (now 25% of total) 6

7. Market Segments: SOE vs. Private: Lesson Learned International Joint Ventures are usually with SOE’s SOE’s have longest sales cycle –12+ months cycle Due to budget planning Not as wealthy More bureaucracy International Joint Ventures are usually with SOE’s SOE’s have longest sales cycle –12+ months cycle Due to budget planning Not as wealthy More bureaucracy 7

8. Market Segments: SOE vs. Private: Lesson Learned JV’s –These are the wealthiest companies with biggest potential –But, they have complicated bid process (8+ months) –Difficult contract / payment terms JV’s –These are the wealthiest companies with biggest potential –But, they have complicated bid process (8+ months) –Difficult contract / payment terms 8

9. Market Segments: SOE vs. Private: Lesson Learned Private companies are growing –And spending money –Recently, we have been receiving orders within 3 months Much shorter sales cycle Less complicated selling process Adcole has accelerated some new business by focusing on private companies Private companies are growing –And spending money –Recently, we have been receiving orders within 3 months Much shorter sales cycle Less complicated selling process Adcole has accelerated some new business by focusing on private companies 9