1 The product line sheet features all the products Rand Associates represents, as well as our contact information and Representative territory.

2 Drinking Water and Sewer Systems The annual cost of corrosion chart shows that the largest problem with corrosion is in the drinking water and sewage systems category. This presents the problem. $36.0 $Billion

3 Examples of Common Pipe Corrosion.

OXYGEN Friend or Foe? 4 Oxygen is a corrosion catalyst for Most Metals. Carbon Steel Copper 316L Stainless Shown are three types of the most commonly used metals in todays plumbing systems. The pitting is a result of oxygen combining with water and heat.

5 FAILURES Shown are examples of scale build-up on the heat transfer surface area of a water heater. All domestic water heating equipment will eventually see scale build-up on the heat transfer surfaces. The metals ability to withstand the thermal abuse stress caused by this reaction is based on the metals thermal resistance value.

6 * Per AGA 2000 Statistics Type Years (Av.) Residential Commercial 9 * 7 COMMERCIAL WATER HEATERS New Construction 15,723 Replacement 62,891 *** REPLACEMENTS PER DAY……………………………………………………… ** AHRI 2010 Statistics *** Industry claims 80% are for replacement market Annual Unit Sales 78,614 ** Presented in the chart are average life expectancies of commercial and residential water heaters. Also shown are the annual reported sales of replacement vs. new construction. Replacement sales are far greater than new construction sales. This illustrates a problem that needs to be addressed.

Microscopic Image Of 316L 7 This microscopic image of 316L SS shows its inner granular structure. The makeup of small sharp edged granular pieces makes this form of stainless steel very susceptible to chloride stress cracking. Starting at the top water side, a stress crack can follow a path from top to bottom with no barrier to prevent stress cracking.

316L Stainless Steel 8 Chloride Stress Cracking in 316L Microscopic Image of Chloride Stress Cracking 20 ppm Chloride 80 ° F Shown is an actual microscopic image of chloride stress cracking in 316L SS with 20 ppm 80 degrees F. The 316L SS failed in what would be considered very mild operating conditions.

9 Non Passivated Tank Failure This 316L SS water heater was less than 2 years old when the tank failed due to the heat affected area of the weld that was not passivated. The white arrow points to the heat effected zone where water is now leaking from the weld joint. With stainless steel alloys this can be prevented by immersion pickling and passivation process. A process that is currently used by PVI in the manufacturing of water heaters and boilers made of AquaPLEX duplex alloy.

10 Another angle of the non-passivated tank failure mentioned in the previous slide. Notice the discoloration around the weld joint. This is known as the heat affected zone. Immersion pickling and passivation will prevent this type of failure for 316L. However, it will not prevent chloride stress cracking.

11 One Easy Spec Eliminates Scale And Corrosion Failures From this point forward, the presentation will begin to explain how AquaPLEX duplex alloy has been engineered to eliminate scale and corrosion failures. Thereby, providing you with the worlds first indestructible line of water heaters and boilers.

12 Created By: ………………………………..OUTOKUMPU STAINLESS y……………………………………….LDX-2101 Outokumpu,Sweden This phenomenal duplex alloy developed in Sweden in 2006 was named LDX-2101 by Outokumpu. That alloy was trademarked - AquaPLEX by PVI for the use of manufacturing boilers and water heaters. LDX-2101 is available for purchase by any manufacturer. Alloy……………………………………….LDX-2101 Available From……………………….Sandmeyer Steel Co. Philadelphia,PA. Available Since……………………….April 2006

316L 13 AquaPLEX Microscopic Images of AquaPLEX and 316L Stainless Compared are microscopic images of AquaPLEX and 316L. The layered structure of AquaPLEX is the result of different curing and cooling parameters for austenite and ferrite. This makes the alloy impervious to chloride stress cracking. The inter granular make up of the 316L offers an easy path for chloride stress cracking to occur without a barrier to prevent the crack from forming completely through the piece of metal.

Pickling And Passivation Process 14 Restores Ferritic Structure Acid 1.5 pH (Total Immersion) Heat Affected Zone Activates Chromium Oxide Barrier The immersion pickling and passivation process is used to change the alloy back to its original state after welding has created the dark colored heat effected zone, the acid bath restores the ferritic structure activating the chromium oxide barrier.

Acid 1.5 pH (Total Immersion) Activates Chromium Oxide Barrier Pickling And Passivation Process 15 This process has created a corrosion barrier of chromium oxide.

Why is Oxygen Good For AquaPLEX 16 Oxygen Sustains The Chromium Oxide Barrier. Oxygen is a corrosion catalyst to most metals used in plumbing systems. Oxygen helps to sustain the chromium oxide barrier in AquaPLEX.

190 ° F Water 5.0 PH 650 PPM Chloride Multiple Cycles How we Know it Works 17 Figures shown above are considered to be very aggressive operating conditions for most water heaters. Results from the ongoing testing of AquaPLEX proves it is unaffected by this abuse.

This is Why It Works Chromium Oxide Barrier Sustained By Oxygen Impervious To Chloride Stress Cracking Proven Tensile And Yield Advantages 18 Listed are some of the points that make this alloy resistant to major challenges in a water heating system.

19 AquaPLEX Carbon Steel GRADE A36 TENSILE YIELD PSI PSI 100,946 69,328 58,000 36,000 Cast Aluminum 316L Stainless MATERIAL 78,000 30,000 47,000 23,000 Listed are some of the proven tensile and yield comparisons for various metals.

20 Scale can act as a layer of insulation between the fire side and the water side of a water heater making it difficult to transfer the heat to the water threatening the heating transfer surface. The metals ability to withstand this abuse brought on by the scale and the heat is its thermal resistance.

21 AquaPLEX 3 PASS DESIGN 1800 F Flu Gas Exiting Burner ° Max Fire Side 550 F ° AquaPLEX 885 F ° The thermal resistance of AquaPLEX is far higher than the max temperature that the tube sheet could ever reach. This makes the alloy capable of withstanding greater temperatures due to scale build-up on the heat transfer surface area.

° F 550 ° F Max. Mean Temperature 885 ° F Example of scale build- up on the bottom tube sheet of a vertical fire tube three pass design. Maximum mean temperature of AquaPLEX is rated at 885 degrees F. The maximum mean temperature of the center tube sheet at the area most subject to scaling is 550 degree F. This differential of temperature assures the thermal resistance is far greater than high stress operating conditions would present.

23 ROBOTIC WELDING Six-Axis Robotic welding insures a perfect weld joint each and every time.

24 Compared is an non-passivated 316L stainless steel weld joint (left) and a passivated robotic weld on an AquaPLEX tube sheet (right).

25 DURAWATT ELECTRIC TURBOPOWER 99 TURBOPOWER POWER VT PLUS QUICKDRAW STEAM TRICON MAXIM 3 STORAGE TANKS Shown are available AquaPLEX water heaters and storage tanks.

26 V VT % EFFICIENCYMODEL CENTAURI % CENTAURI PLUS % AVAILABLE IN MBTU 3-PASS DESIGN Many of the known and trusted boiler designs are now also available in AquaPLEX duplex alloy in condensing and non- condensing high efficiency models.

WHY MEDIUM MASS BOILERS? CONNECTS DIRECT TO BUILDING LOOP NO MINIMUM FLOW RATE ELIMINATES SHORT CYCLING 27 Medium mass boilers continue to be considered the most hassle-free design offering many advantages over instantaneous type water heating systems.

28 THE RECIPE FOR SUCCESS FERRITIC (400 Series) TENSILE 100,946 PSI 21% CHROMIUM AUSTENITIC (300 Series) YIELD 69,328 PSI 885 °F MEAN TEMPERATURE This signifies a paradyne shift in the water heating industry. The recipe for success and expert engineering all justify what makes AquaPLEX an indestructible source of hot water.