GLOBAL OPERATIONS UPDATE March 19, 2008

Quality Update 2007 CI Actions Q1 ISO Audits Standard practice Quality Organization realigned by Business & Region PPF Customer Quality Focus Team Launched Q1 – Q3 Top 30 Asia suppliers audited / trained Q2 KS / WSR Customer Quality Focus Team Launched Q3 Sourcing & QA alignment Q4 Open field RFCA’s reduced by 62%

HHI Current State Quality Control Quality Assurance Quality System – Current State Moving from Quality Control to Quality Assurance

Quality Timeline Quality Focus Q1-Q4 Process Quality Assurance Top 10% NAFTA & Asia Suppliers Quality Audit annual recertification Top 10% Latin & Asia suppliers annual Social Accountability Audit Asia & NA Quality Teams: –Train & Implement: self-audit; external-audit; corrective actions; standardized work & achieve continuous improvement Q1 Improved EOLA Quality Control Same QA resources refocused for greater effectiveness Q1 Improved Intranet: ISO electronic documentation access Q2 NPI Process Improvement Internet project tracking Revised Deviation Procedure – Done Revised Capital Approval Process – Done Revised Part Qualification Procedure Revised Warehouse Hold Process Coach Quality Assurance self-auditing “Upstream”

HHI Lean Six Sigma Quality Model

Global Lean Six Sigma Quality Additional dotted Line responsibility 5 Sites MBB’s and 5 Site QA Managers