© Copyright 2003 Frost & Sullivan. All Rights Reserved. U.S. HVAC Equipment Markets A U.S. HVAC Equipment Markets Commercial & Institutional HVAC Industry

© Copyright 2003 Frost & Sullivan. All Rights Reserved. 1. Executive Summary 2. Total HVAC Equipment Markets 3. Unitary Equipment compact, packaged products, between 5 ton and 120 ton capacity smaller to medium sized commercial buildings primary and secondary schools 4. Applied Systems large units assembled at end user locations, ton units built up systems, individual components selected and matched 5. Chillers primarily large applications most popular types are water-cooled and air-cooled 6. DSD Tables A615 U.S. Commercial & Institutional HVAC Equipment Markets

© Copyright 2003 Frost & Sullivan. All Rights Reserved. HVAC Markets Energy savings initiatives Renovations driving demand for HVAC equipment Unitary Equipment Market moving towards smaller size Multiple installations, easy installation, easy maintenance, simple control, and attractive and efficient designs Majority of buildings in the United States are single floor and require small tonnage capacities to operate Market Trends A615 U.S. Commercial & Institutional HVAC Equipment Markets

© Copyright 2003 Frost & Sullivan. All Rights Reserved. Market Trends continued Applied Systems Growth of this market is expected to remain slow due to an increasing demand for smaller unitary equipment Drivers: replacement and the construction of new large commercial and institutional buildings Chillers Manufacturers are spending money in producing refrigerants acceptable by EPA standards and expect good returns in retrofit orders Moving from water-cooled to air-cooled A615 U.S. Commercial & Institutional HVAC Equipment Markets

© Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Features Key trends and impact on the different products Industry Challenges Market drivers & restraints, and opportunity analysis Market sizing and competitive analysis Revenue Forecasts Unit Shipment Forecasts Pricing Trends End User Trends (commercial vs. institutional) A615 U.S. Commercial & Institutional HVAC Equipment Markets

© Copyright 2003 Frost & Sullivan. All Rights Reserved. HVAC air filter manufacturers  CLARCOR Inc. (F&S Award)  AAF International (F&S Award)  Camfil Farr (F&S Award)  Flanders Corp. (F&S Award)  Airguard  Purolator  Tri Dim  HEPA Corp. (F&S Award)  Barnebey & Sutcliffe Corp.  Purafil  Trion  United Air Specialists  3M  Honeywell Key Market Participants & Potential Buyers HVAC equipment manufacturers  Governair Corporation  Dunham-Bush, Inc.  Carrier Corporation  McQuay International  Trane  York International  RAE Corporation  Freeze Co Systems, Ltd.  Copland  Turbocor Inc.  Lennox Industries, Inc.  Air Enterprise  Armstrong  Mammoth  AAON A615 U.S. Commercial & Institutional HVAC Equipment Markets