Investing in. Mattei Compressors. Compressed Air Industry Automotive Transit. Good morning. How is business at Mattei Compressors?

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1 New Flyer Bus Audit Mattei Rotary Vane O c t o b e r

2 1 0 / 0 8 Comressed Air Industry Automotive Transit Investing in Mattei Comressors Comressed Air Best Practices soke with Jay Hedges (General Manager) of Mattei Comressors. Good morning. How is business at Mattei Comressors? Good morning. This is a very exciting new chater for Mattei. The Comany has entered into the third hase of significant investments into Mattei. The first two hases of investments focused on otimizing Mattei rotary vane technology for enhanced energy efficiency and then taking them to market in Euroe. This has been very successful. The objective of Phase 3 Investments is to bring these newly otimized rotary vane technologies to market in North America. On average, our new rotary vane designs are 10% more efficient than rotary screw air comressors. This erformance exists across the board at all load rofiles. Durability is also extremely high because these air comressors run at low seeds between 1,200 1,800 rm. Mattei manufactures a full range of rotary vane air comressors. How energy efficient are the new rotary vane air comressors? Our research and develoment grou in Italy is led by General Manager, Mr. Giulio Contaldi, the son of Mattei s Founder. Mr. Contaldi s team has focused on otimizing the energy efficiency of rotary vane air comressors and they develoed several breakthroughs. The first aroach was to find the otimal running seed (from an energy efficiency standoint) for each roduct series. The solution was to design a unique air end and motor set for each air comressor model. In this way, each model rovides maximum energy efficiency. In Mr. Contaldi s words, We are in a unique situation in which 2

3 Comressed Air Industry Automotive Transit 1 0 / 0 8 Efficiency no one has ever taken the study of the vane technology to our levels and this has left loads of sace for imrovement (which we will gladly take advantage of). On the other hand, screw comressor manufacturers have in the ast 20 years invested substantial amounts of money in universities and R&D deartments all over the world and have develoed their comressor to its hysical limits. Therefore, I believe that screw technology is fast aroaching its zenith in erformance betterment. The R&D team set the standard running seed at 1,800 rm with the ability to run at seeds as low as 1,200 rm. The slower the unit runs, the less secific energy it consumes. The Maxima Series (a constant seed machine) is a single-stage air comressor with a erformance curve similar to that of a twostage air comressor. Mattei is delivering six scfm er horseower (h) with the singlestage Maxima! We turn the Maxima airends at 1,200 rm to deliver the best kw/100 scfm erformance in the industry. All Mattei air comressors feature direct-driven in-line airends. This eliminates drive train efficiency losses associated with belts or seed increasing gearboxes. The result is suerior erformance and the highest ossible efficiency. What advantages do rotary vanes offer vs. rotary screw comressors? Rotary vane air comressors roduce more air er revolution than rotary screws the Maxima, oerating at 1,200 rm achieves otimum efficiency. By comarison, most rotary screws are running at 3,500 to 7,000 rm, increasing wear and reducing air end life. There are many inherent design advantages in the rotary vane: Produce more air er revolution with some models roducing six scfm er h! Larger comression chamber offers more sace, and therefore more volume of air to comress er revolution. Achieves 90% mechanical efficiency due to better internal sealing. Design eliminates the efficiency robbing of internal blow-holes found in rotary screws. Greater durability due to low oerating seeds; Mattei airends rotate on two bushings and are designed to be 100,000-hour machines. Screw air ends run fast, use u to six bearings and tend to last about 35,000 40,000 hours. By eliminating air end bearings, Mattei has eliminated one of the most common scheduled failures found in rotary screw airends. Save and Prevost ALR Aluminum Air Piing: Labor saving... Easy to install or modify. No gluing, sweating or threading needed. Energy efficient... Smooth assages & leak free connections for life-long energy savings. Suerior Air Quality... ALRʼs non-corrosive for cleaner air, longer air tool life. Range of diameters... 7 sizes from mm. For the dealer near you, call: revostusa.com Prevost Cor. P.O. Box Woodruff RD Unit B-13 Greenville, SC

4 1 0 / 0 8 Comressed Air Industry Automotive Transit Investing in Efficiency: Mattei Comressors Please discuss the durability of rotary vane technology. Known as 100,000-hour machines, Mattei rotary vane comressors are often chosen for OEM alications because of their durability and their comact size. The Otima Variable Seed Series, with 11 kw to 132 kw models, has a seed range of 700 to 1,800 rm. Durability is greatly enhanced by low-seed machines and bearingless air ends. Proer maintenance and service is imortant to the rotary vane as it is with any comressor, but with roer maintenance, you are much less likely to see unscheduled downtime with Mattei Rotary Vanes than with rotary screws. We will demonstrate our confidence in these new roducts when Mattei s new Worldwide Warranty Program is announced at our bi-annual Distributor Convention in Milan, October 16th through 19th, I am thrilled to be leading a delegation of 23 individuals reresenting the U.S. market this year. Can you rovide us with an overview of Mattei s roduct line-u? Sure. Aside from some niche roducts for OEM s and other technologies in R&D, we offer four distinct roduct lines for sale. They are the: General Manager Jay Hedges examines new 100 series automotive comressor to be launched in Euroe this fall and in the United States in ERC Series (2 100 h): These are oen-frame, fixed seed, rotary vane comressors that are amazingly quiet, feature simle controls and offer economy and extraordinary reliability and erformance. 2. AC Series (5 60 h): This is the next level of sohistication featuring quiet cabinets, electronic controller, soft Wye-Delta motor starter and otional integrated refrigerated air dryer. 3. OPTIMA Series ( kw): Cabinet enclosed featuring VSD controllers to otimize energy savings for facilities with varying levels of lant air demand. Otional integrated air dryer and condensate management system. 4. MAXIMA Series ( h): Quiet ( 70 dba) cabinet enclosed, runs at an incredibly slow 1,200 rm to offer maximum energy efficiency (as low as kw/100 scfm) for systems with high levels of demand. Otional integrated air dryer, condensate management and heat recovery system. 4

5 Comressed Air Industry Automotive Transit 1 0 / 0 8 Please describe Mattei as a comany. Mattei was founded, in 1919 in Italy, so next year we will celebrate our 90th anniversary! Our headquarters and rimary manufacturing center is in Vimodrone, Milan. Assembly of air comressors above 30 kw is done in Vimodrone. Smaller-sized, high-volume roduction comressor assembly is done 30 km away, near Bergamo. Bergamo also manufactures air end comonents in our state-of-the-art machining centers and oerates MTA, a searate comany charged with roviding genuine arts for Mattei comressors worldwide. The comany was urchased, in the 1960s, by the Contaldi family. The Contaldi family has owned and oerated industrial businesses since In addition to Giulio Contaldi mentioned above, sister Silvia Contaldi heads u Sales and Marketing activities as Commercial Director, and their mother Carla Contaldi succeeded her husband as Chairman and CEO, roviding ownershi and management continuity. Mattei emloys aroximately 250 eole worldwide. We oerate multile subsidiaries across the world including 50 emloyees in Russia and aroaching 20 emloyees at a raidly growing 100% wholly owned assembly oeration in China. From left to right: The Contaldi Family: Giulio Contaldi (Director of R&D and Manufacturing), Carla Contaldi (CEO) and Silvia Contaldi (Director of Sales & Marketing). How does this affect how Mattei does business with distributors? The business is very ersonal to us. The Contaldi family works day-to-day with roduct develoment, international exansion and the overall management of the business. Their hands-on style has focused on otimizing rotary vane technology with strong results and fostered long-term ersonal relationshis with distributors worldwide. The comressed air world is rimarily made u of multi-brand multinationals who have acquired many indeendent brands. A distributor who has sent a lifetime building a business selling a secific brand, is often dealt unleasant news after an acquisition. Mattei remains committed internationally to distributors as its sales channel. What is the setu for North America? Mattei has been oerating in the U.S. for 27 years. We continue to be headquartered near Baltimore, Maryland where we will continue to assemble the oen-frame ERC machines. The big change will be our lan to stock air comressor models of u to 132 kw including Maxima, Otima and AC machines. These machines will arrive ready-to-shi from Italy and allow us to have inventory available for fast deliveries. Mattei is delivering six scfm er horseower (h) with the single-stage Maxima! 5

6 1 0 / 0 8 Comressed Air Industry Automotive Transit Investing in Efficiency: Mattei Comressors Mattei Comressors will be exhibiting again at Hanover in What are the lans in the U.S.? We will first increase the brand awareness here by leveraging Mattei s Global reutation for quality and innovation, through a focused marketing strategy including, trade advertising, trade shows, direct mail, sales contests and other romotional camaigns. It doesn t take much to stand out in industrial advertising so a little creativity goes a long way. We are building a state-of-the-art training center and a show room in Baltimore, which will suort our distributor growth strategy by demonstrating our roducts and conducting service training schools. Our sales strategy is to suort existing loyal distributors while exanding distribution geograhically. We are strong on both coasts, with our largest distributors based in Los Angeles and New Jersey. We have many oortunities for distribution in the Midwest and South. Having recently signed four of the to sales re comanies in the U.S., Mattei now has 23 individuals in the field suorting and building our distributor network. The quality of these comanies and the distributor rosects we are working with is a clear indication of the remarkable erformance of the new Mattei air comressor roducts just now arriving in the U.S. Educating the marketlace is our greatest challenge. Once distributors and their customers see these comressors and the erformance data, the rest is retty easy. Our objective is to educate as many as ossible through various marketing and sales rograms. Thank you, Mattei, for your insights. For more information, lease contact Jay Hedges, Mattei Comressors, tel: , jhedges@matteicom.com, 6