Utility Knives and Blades 2010 Program and New Products Version

Agenda Market Size Category Overview Consumer Insights Product Innovation Commercialization

Market Size

Channel Overview: North America Key Takeaways Hardware/Home Centers are the preferred destination Key Users Dry wall Carpenters Roofers DIY Purchase driven by Ease of shopping Right Product for application Value Offering Everyday Pricing N.A. Retail $280MM THD Lowe’s Other IC Hardware 30% 10% 17% 24% 19%

IRWIN is the newest and fastest growing brand Brand Share: North America N.A. Retail $280MM Key Takeaways Stanley Other Kobalt Husky IRWIN 52% 10% 4% 5% 29% Stanley is the market leader New Products New Brand positioning (Bostitch, FatMax, Extreme) House brands growing at THD and Lowe’s Folding Knives Specialty and Snap Knives Many different players through private label IRWIN is the newest and fastest growing brand

Category Overview

Initial Offering 2004 2005 2007

Current Offering

Main Benefits of Bi-Metal Blades IRWIN Innovation Main Benefits of Bi-Metal Blades Holds Sharp Edge 3X Longer* Shatter Proof Unbreakable *versus carbon Bi-Metal blades virtually eliminate injuries from flying chards of steel. Since the last 3X longer, Associates change blades much less, which reduces their risk of getting cut.

Consumer Insights

Target End Users Drywallers: Roofers: Contractors: Choke up on “nose” Measure and cut quickly Drywall dust ruins tools Cuts blades for fresh tips Roofers: Tool security Loose pieces get thrown away Temperature effects the materials being cut Contractors: Durable Design Quick easy blade change Secure internal parts Drywaller Primarily using Trap blades and Fixed Handles Using between 5 – 10 blades per day Dried-in structure Protected from elements, but not heat or cold Drywall is very dusty and dirty Roofer Primarily using Hook Blades and Mid-high end retractable Knives Using 3 – 5 blades per day, depending on the material Working at high elevations Often constrained by safety equipment Outside in all conditions – weather has tremendous impact on ease of cutting materials

End User Profiles Drywaller Roofer General Contractor MRO 36% of Market Roofer 20% of Market General Contractor 20% of Market MRO 14% of Market Key Needs Durability Easy access Ergonomics Narrow Profile Blade Storage 1) Ergonomics 2) Blade Storage 3) Durability Compact Easy Access Safety Purchase Drivers Application Product Performance Price 1) Application 2) Product Performance 3) Price Knife Selection

Product Innovation: 4-Point™ Utility Knife Blades

User Observations Sharpening or cutting their blades for new tips Today Sharpening or cutting their blades for new tips Drywallers are 36% of the market Tomorrow Key Needs 1) Tip Sharpness 2) Durability 3) Life Give the user what they want! Purchase Drivers 1) Product Performance 2) Precision 3) Price 4) Pack Size (Bulk)

MEETS TOP 3 UTILITY BLADE USER NEEDS: 4-Point™ Innovation Advantages 4 Points in one blade Doubles the Life of the Blade Convenience of a snap blade, rigidity of a trap blade Bi-Metal and Carbon available 4 notches to maintain blade length MEETS TOP 3 UTILITY BLADE USER NEEDS: (1) Tip Sharpness, (2) Durability, (3) Life

Product Innovation: Utility Knife Handles

Consumer Insight on Utility Knives Handle Innovation Consumer Insight on Utility Knives Choke up on knife “nose” Holds tape measure end-hook against blade to quickly measure and cut Drywall dust gets in everything and will “cake up” in tools Drywallers

Consumer Insight on Utility Knives Handle Innovation Consumer Insight on Utility Knives Tool Security: need to change blades quickly and without opening knife Knives that have loose pieces get lost and thrown away Temperature effects the materials being cut: pulling hard on knife in cold weather Roofers

Consumer Insight on Utility Knives Handle Innovation Consumer Insight on Utility Knives Durable Design: “Gets the Job Done” Easy Blade Access: For quick blade changes Secure Parts: To prevent dropping/losing components Removable Blade Housing: For cleaning debris after use Contractors

Consumer Insight on Carpet Knives Handle Innovation Consumer Insight on Carpet Knives Angled Handle: Keeps hands above the material Blade Rigidity: To ensure straight cuts in flooring material Tool-Free Access: Quick and Easy blade changes Blade storage inside the handle Flooring Specialists

Consumer Insight on Linoleum Knives Handle Innovation Consumer Insight on Linoleum Knives Hooked Blade: For cutting on the pull Durable Blade: Users want the ability to re-sharpen Durable Handle: Resistant against drops and jobsite conditions Flooring Specialists

Consumer Insight on Folding Knives Folding Knife Handle Consumer Insight on Folding Knives Compact Design: Fits into the pocket Durable Design: Holds up to jobsite conditions Quick Change Design: Change blades quickly Belt Clip: Clip onto pocket or belt for easy access General Contractor

Consumer Insight on Safety Knives Safety Knife Handle Consumer Insight on Safety Knives Self-Retracting: To prevent puncturing Ergonomic Design: Reduces Hand Fatigue Tool-Free Access: Quick and Easy blade changes MRO

Final Packaging Concepts Handle Program is Customized for Unique End User Needs

Final Packaging Concepts Best-in-Class Packaging Clearly Communicates Benefit

Set Up Information

2010 Full Category Offering All Products Available Now

Commercialization

Heavy seeding and targeted advertising initiatives 2010 Integrated Marketing Plan End User Engagement Event Marketing Sports Marketing SkillsUSA Heavy seeding and targeted advertising initiatives