JUNE 2007“Linking Company News to Employees”

New Dynabrade Venture Begins

By Chip Case - Vice President of International Markets

Dynabrade IndiaAbrasive PowerTools PVT LTDis in its final stagesof developmentand will be openlyconducting busi-

ness in the Indian market during June 2007.

Dynabrade International hashad traditional relationshipswith distributors in India for20 years. We have shippedproducts directly to them andmanaged their account logis-tics from Clarence during thattime. A number of develop-ments in the Indian commer-cial arena led us to thedecision to invest in a dedi-cated physical facility for theexciting Indian market.

Historically, India’s businesssector was a combination ofgovernment owned and privatelyfinanced initiatives. Many ofthe large industries, including

most producers of transportationproducts, were actually ownedby the government and lacked the efficiency to offer top-quality products.

In the recent past, a strongmove toward privatization hasled to investments in productquality that have allowed Indianproducers to radically raise thelevel of their goods. Foreigndirect investment (FDI) inmany sectors, notably AOEM,has raised the expectation ofthe Indian consumer andcompetition to produce cos-metically acceptable productshas intensified greatly.

With companies such asBentley, Mercedes, Toyota,Ford and Honda establishingassembly plants or importstrategies in India, local pro-ducers have been challengedto improve production methodsor risk losing significant marketshare. This phenomenon presents

Story Continued on Page 2

DYNABRADEINDIA POISEDFOR SUCCESS

Dynabrade’s newest headquarters is located in Mumbai, India.

a wonderful opportunity forDynabrade to work with pro-duction plants to help themimprove the quality of theirfinishes. Industry estimatesindicate that Indian car plantswill produce over 1.2 millionunits in 2008.

Other industry segmentsare also growing rapidly andIndia has become the world’ssecond largest recipient ofFDI, trailing China but surpassing the USA.

The Indian middle or con-suming class comprisesnearly 300,000,000 people,roughly the same number asthe total population of theUSA. Unlike many of the so-called “emerging” economies,India will not depend heavilyon export sales to drive its

economy. Many of its productswill find their way into Indian homes, creating ahigh level of sustainability forIndia’s manufacturing segment.

Inside:

“Lunch & Learn” 2

Company Website 3

First Int’l Trade Show 4

New Auto Cut-Off Tool 4

Brasil Tool Clinic 5

European Auto Market 6

Coworkers & New Faces 7,8

Story Page

Dynabrade IndiaTo fully engage the dynamic Indian market,Dynabrade has elected to establish a whollyowned subsidiary (WOS) in Mumbai.

Dynabrade India Abrasive Power ToolsPVT LTD will offer local warehousing forour advanced network of distributors, customer service for both distributors andconsumers, technical advice for applicationsand repair, plus on-site training.

By consolidating a local inventory,Dynabrade India will greatly improveproduct flow to our distributors and oninto the consuming base.

Nischal Sachdev, who will act as Managing Director for the subsidiary, will lead Dynabrade India. Nischal has astrong history with Dynabrade, havingjoined us for the fiscal 2001 year. Nischalhas acted since then as the Sales Managerfor India and the Sub-Continent. Underhis guidance, the Indian distribution basehas increased its purchases fromDynabrade 10 fold in the past 6 years.

Assisting Nischal with technical mattersis SK Moorthy. SK comes to us fromChicago Pneumatic, where he spent over35 years in technical sales and supportroles. SK has vast experience in technicalmatters and has visited literally thousandsof consuming accounts during his career.

SK and Nischal both live in the GreaterMumbai area.

Dynabrade India also currently employstwo regional sales managers that report directly to Nischal.

Raghavendra Sachin lives in the southerncity of Bangalore and has responsibility forSouth India. Sachin was most recently employed by St. Gobain/Norton andbrings a wealth of abrasive applicationknowledge to Dynabrade.

Gurjit Singh will lead the sales initiativein North India. A former 3M salesperson, Gurjit has vast experience in abrasive technology and applicationprocess engineering.

Both young men understand the dynamics of distribution networks and solidify the commercial approach thatDynabrade India brings to the Indianmanufacturing base.

Nischal is currently busy establishing asupport crew for the customer servicefunction in Mumbai, as well as adminis-trating final details with the Indian government, IT issues, etc.

Nischal and Mike Noye, Sales Managerfor Asia-Pacific, have worked diligently on this project for the past 18 months. Aswe approach the actual opening date,there is tremendous excitement on the partof everyone that has been involved in the development of Dynabrade Inc.’s newest subsidiary.

Please join us in wishing Nischal and hisIndian team great success with DynabradeIndia Abrasive Power Tools Private Limited!

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By Ned Librock - Director of Marketing

“Lunch & Learn” SessionsHelp Inform Marketing

In an effort to broaden our understanding ofDynabrade’s various salesdivisions, the marketing department in Clarence hasbegun a program called“Lunch & Learn.” This pro-

gram invites a member of the Sales Management team to give a brief middaypresentation to the entire marketinggroup, followed by a hearty meal.

We ask that each presentation offer asnapshot of the division’s strategies, and a

SWOT analysis (strengths, weaknesses, opportunities, threats). This informationshould help us answer the key question,“How can marketing better support your division in achieving its goals?”

In the past year we have held fourlunchtime sessions: Mike Saraf onCanada/Latin America, Claudio Santoson Brasil, Chip Case on Europe and BillKoslowski on the USA automobile aftermarket. Each presentation was very informative and led to a great exchange ofideas and suggestions. New marketing

initiatives are in development, as inspiredby the discussions at those meetings.

We plan to hold future “Lunch &Learn” sessions, with presentations fromother domestic and international repre-sentatives. This is a winning concept – andthe food is pretty good too!

Dynabrade India Grand Opening – (l-r): Chip Case and Ned Librock are joined by SK Moorthy, Technical Manager; Nischal Sachdev, Managing Director; Sachin Raghavendra, Regional Manager South India; andGurjit Singh, Regional Manager North India.

Dynabrade’s Clarence amphitheater is the site ofeach “Lunch & Learn” meeting.

Online Catalog ImprovementsMany improvements have been made to the

product data for our online products catalog.One example is the Dynorbital-Spirit® Ran-dom Orbital Sander for the Automotive Aftermarket. The images, specifications, featuresand benefits have recently been improved to include many associated accessories.

USA Distributor LocatorAfter an analysis of the previous format,

Dynabrade decided to redesign our USA Distributor Locator. Please remember that theDistributor Locator is there solely to help end-users find a means of purchasing our product. After careful analysis, we arrived at thenew design, which lists the five distributors closestto the five-digit zip code entered. It lists the nearest distributor first, and reports the distancein miles too. This design shows no favoritism, andhas been well received by our USA distribution.

Employee Links and Literature LibraryThe Employee Links section will grow in the

coming months too. A secure archive is being created for worldwide advertisements, pricing,training videos, distributor flyers, product development newsletters and more. This will help improve marketing communication andallow everyone see how other departments worldwide support their products and sales teams.

Lastly, the literature library will be reorganized to show only current saleable product literature. It will also be edited to reflect the product organization used in each market by product family.

There are many great ideas coming soon forour company website, so stay tuned!

New & Featured Products SectionSo we’ve built this elaborate website based on a Content Management System.

This allows Dynabrade to change content easily without rebuilding the site continually. Now, we have a vehicle to move this content. How do we decide on

what that content should be? Our answer isa twelve-month schedule for the New & Fea-tured Products sections for each region/mar-ket. There are five factors that determinewhat products are chosen. The first factor isthe most important: is the product sold inthat region/market? Next, a sales promotionor trade show may be ongoing in a region/market. We can support it by adver-

tising an associated product on our regional indexes. We then look at the previ-ous year’s sales history, by product family. Finally there may be a need to feature

a product family to react to a competitor’s action. The New & Featured Productsschedule will help us to market our products with a purpose, and support ourDynabrade sales teams.

New Registered Domain NamesDynabrade has added many new domain names since we first registered

dynabrade.com. A few examples are dynabrade.eu (Europe), dynabrade.in (India) and dynabrade.com.cn (China). These domain names will help Dynabrade do future online business in other countries. We have also registered dynabradeaccessories.com for future sales considerations. We currently have 63 domain names registered, which all redirect to our website. This helps create traffic counts from all over the world.

Sales Lead GenerationOur Dynabrade website is not just a support tool — it can also generate qual-

ified sales leads. We plan to install a brief form to capture contact information, which must be completed before a customer can download ourcatalog. We will then e-mail a copy of this lead to our salesmen and the assigned distributor. If this lead generation idea works, we will develop a reporting system by product family, for the salesmen to show their distributors.

Dynabrade On The Web

Dynabrade Website Continuesto Grow and EvolveBy Jeff Lipski - Webmaster

Dynabrade’s website is continually changing and improving, to best support our many sales and marketingendeavors. This article will cover how we choose the products for the “New & Featured Products” sections ofeach region and market index. We’ll also discuss additions to the website such as new registered domain

names and sales lead generation. Finally we’ll cover improvementsto our online products catalog, the USA distributor locator, employee links section and literature library.

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“We Currently Have 63 Domain Names Registered.”

In our first issue of “Connections” we described thefounding of Dynabrade’s four international business divisions. Now we’d like to travel even further back in time, torevisit the true beginnings of our international sales.

The year was 1974, and Dynabrade President Walter Welschwas conversing with a former coworker from3M Company. Wally remarked that since 3Mwas selling abrasives all over the world, he sawthe same global potential for the Dynafile®.Then his friend offered a fateful suggestion:Wally should showcase his new abrasive belttool at the annual Hannover Messe, or Han-nover Fair, in Germany. Wally agreed, so hisfriend (fluent in German) made a quick phonecall to reserve a booth for Dynabrade. Wallysoon discovered that, with a single product tosell, he had been booked into the largest andmost influential trade show in the world!

With just three weeks to prepare, Wally hadto obtain his first passport and arrange for specialclearance to take the Dynafile® across countryborders. Somehow he accomplished this, andsoon found himself at the entrance of the enormous HannoverFair, carrying two heavy bags stuffed with work pieces and Englishsales literature. Wally lugged those bags through seven buildings,before he finally arrived at Dynabrade’s booth.

Quickly setting up shop, Wally began employing the one salestactic that will always be essential: demonstrating the Dynafile®!

Before long the sparks were flying (literally) and a crowd hadformed around the Dynabrade table. A German distributorowner named Waldemar Löser immediately saw the potentialof the Dynafile® and told Wally, “I’m your distributor!” To sealthe deal Löser placed a stocking order for 50 tools, which

was the largest order in Dynabrade’s brief history. Thus began a loyal association withLöser that continues to this day.

Despite this promising start, Wally faced additional challenges during the show. At onepoint his lone Dynafile® tool broke down, and ithad to be repaired by a local merchant. Butthrough perseverance, Wally finished that showand generated over 600 sales leads. As the show concluded, an executive proclaimed the Dynafile® to be the best new product of the entire Hannover Fair!

During that trip Wally also visited Belgium,England and Italy, to try to establish new distribution in each country. Surtech in England was the second European distributorto officially come on board.

Looking back, Wally’s trip to the Hannover Fair in 1974 was the true catalyst for our international business, which today encompasses over 80 countries and accounts for almosthalf of Dynabrade sales. It also proved that, no matter which country you’re in, demonstrating the Dynafile® is alwaysyour best strategy!

A Look Back

4

Dynabrade’s International SalesBegan With Fateful Trade ShowBy Gary Lojacono - Manager of Marketing Communications

By Bill Koslowski - USA Automotive Aftermarket

Walter WelschDynabrade President

We have been very fortu-nate to have our 18075Long-Neck Cut-Off Tool!This tool’s “sizzle” is in itsconfiguration. The longerreach – and especially the linear forward motion – is

the key. Your control and leverage is enhanced as you cut. It is so much easier to cut a straight line with this tool, compared to tools with the

wheel mounted at a 90˚ angle. I like to describe it to potential customers as a “front-wheel drive tool.”

Previously, we were not nearly as successful selling the Autobrade Red18070 Straight-Line Cut-Off Tool and18080 7° Offset Cut-Off Tool.

The Long-Neck Tool is rated at 20,000 RPM and has a beefy .5 hp air motor. It accepts 3" diameter Cut-Off Wheels with a 3/8" center hole.

Special thanks to Jeff Gurbacki, who was the sparkplug behind this project. He thought it to be a good idea as there are very few similar tools, and that the longer reach would be desirable.As of May 2007 we have sold 2,722 tools, with the USA Auto Aftermarket selling 2,634 of those.

Model 18075

New Cut-Off Tool AddsSizzle to Automotive Line

Dynabrade’s corporate salesinitiatives, in order to givethem a better understandingof our timeline for expand-ing into new markets such asBrasil. They were then splitinto three groups and rotated through instructional,hands-on stations presentedby our Training and Techni-cal Service group of TonySchiavitti, Irv Roy and SteveBeattie. The stations featuredmetalworking applications,solutions for working withwood and composite mate-rials, and a new station witha specific focus on our DieGrinders and Disc Sanders.This last station was specifi-cally designed to heightenawareness of these toolgroups, as they are so important to our company’sgrowth — not only in Brasil,but globally.

Each group was with usfor an entire ten-hour day sothat each attendee had theopportunity to run as manytools as possible. Throughouteach day, interaction wasstrongly encouraged and re-alized. We utilized translatorsat each station to ensure acomplete understanding and

to encourage dialogue. Aftera short period of time, alladjusted to this rather easily.As Tony Schiavitti, our Corporate Training Man-ager said, “When qualitypeople get together for acommon cause, the lan-guage barriers seem non-ex-istent. The challengingdetails of an internationalevent were handled flaw-lessly by Claudio Santos(Managing Director ofDynabrade do Brasil) andhis outstanding team.”

We presented a compre-hensive group of productsfor select applications, themajority of which beingseen for the first time by thiscustomer base. As Dynabradedo Brasil has been an operational subsidiary foronly four years, there is stilla rather limited product offering of core products.That offering is growing at asustainable pace, and educa-tional seminars like the Tool Clinic are known to instantly infuse new productsinto a new market.

The Brasil Tool Clinicwas successful not only because the attendees leftwith a greater understandingof our product line, but ofequal importance, they are assured of our commit-ment to our internationalcustomer base.

It was a wonderful andencouraging experience forour Dynabrade do Brasiland Corporate Trainingteams as well. As Tony observed, “distributors hadmany transportation issues

to deal with – long trips withungodly hours in traffic,among others. Yet theircommitment to Dynabradewas very noticeable. Goodpeople are good people, nomatter what corner of theworld you are from.”

A special congratulationsgoes out to Claudio Santosand the Dynabrade do Brasil team for making this a meaningful and memorable event. Theircommitment to creatingawareness and professionalapproach in the challengingmarket of Brasil has resulted in exceptional salesgrowth. Thank you for all of your efforts!

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Dynabrade do BrasilTool Clinic is a TriumphBy Mike Saraf - Sales Director of Canada/Latin America

Hosted by ourDynabrade do Brasilsubsidiary, Dynabrade International conductedits second OUS ToolClinic in February. Setin Santo Andre in the state

of Sao Paulo, the Tool Clinic was a huge success. The event was held overfour days and was attended by 129people. Chief among those were salespeople and managers from 29Brasilian distributors, as well as out top distributor partner from Argentina.

Similar to our 2006 Tool Clinic inMexico, the theme of the programwas education. It is vital to our OUSsuccess that our distributor salespeopleand end-users not only understandour products and application-solvingtechniques, but also that they knowhow to convey their ideas back to ourfactory through Dynabrade do Brasil.We are continuously asking for theirinput as we strive to better understandand serve the global marketplace.Without it, we would find it very difficult to succeed in these new, nontraditional markets.

Each day at the Tool Clinic, the 30or so attendees saw a presentation on

Tool Clinic Update

Managing Director Claudio Santos addresses a group at the Tool Clinic in Brasil.

Tony Schiavitti (right) instructs attendees on polishing techniques.

The decline since the year 2000 is basically due to the worsening of themacro-economic situation, where con-sumer demand has been decreasing.However, after 2004 and still in 2006,there are many improvements, especially in Central and Eastern European countries as well as Turkey.

The map above shows the geographical distribution of the maincar assembly plants throughout EU

Member States and Turkey. Eachcoloured button on the map represents amanufacturing plant in the country. This information is based on 2003 figuresfrom Automotive News and the EuropeanAutomobile Manufacturers Association (ACEA).

The automotive OEM market has always been our most important marketfor Dynabrade worldwide. In Europe,where we have seen a positive environ-ment and growth for the future, it has

been decided by top management to invest more on this very important market segment. One of the most important investments in Europe issoon starting in Levoca, Slovakia: the Dynabrade Learning & Training Center. The official grand opening is scheduled for June 7, 2007. Of course, there are many goals in settingup this center. One of the most impor-tant goals is to grow our relationships

with business associated with theAOEM market, such as paint suppliersand abrasive companies like 3M. This approach has been already working well in some countries based on our sales teams’ personal relationships. Now, in order to gain more market share from this dynamic market, it is time for us to explore and set up the most professional programs.

Automobile manufacturing isone of Europe’s major industries. It contributes about6% to total European manufacturingemployment and 7% to total manufacturing output. The auto-motive industry in the EU-15 is

highly concentrated, with Germany alone accounting for close to half of the total. In addition, Sweden, Italy, Spain, France, theCzech Republic, Slovakia, Hungary and Turkeyalso show a specilization in auto manufacturing.

In terms of the number of cars producedworldwide, Europe’s share is 37%. The leadingcar manufacturers are Toyota, GM, VW, Ford,Honda and PSA. Within Europe, Germany hasthe highest production share (29%), followed byFrance (18%), Spain (13%) and the UK (9%).

Since the year 2001, motor vehicle productionhas decreased in the European Union, from 17.2 million units in 2001 to 16.9 million units in 2002. The decline continuedinto 2003, with 70,000 less motor vehicles being produced compared to 2002. The market for trucks and buses saw a more severe decline than the one for passenger cars over the period 2001-2003.

Auto Manufacturing isGrowing Opportunity

By Cengiz Ceylan - Regional Manager - East Europe, Middle East & North Africa

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A Key European Market

The View From Europe

Automotive Assembly Plants in European Union and Turkey.

“Europe Produces 37% of Automobiles Worldwide”

Meet Your Coworker

Team Dynabrade

Where do you currently live? I live in North Tonawanda andhave for the past 17 years.

What year did you joinDynabrade?I started in July of 1987.

What Dynabrade positionshave you held, and what isyour current position?I was hired to work in tool assembly. But the first projectBill Slomba gave me was tosandblast and paint the snow-plow! Currently I am in chargeof the Random Orbital Sanderassembly cell.

What is the most challeng-ing part of your job? We have to keep our tools to thehighest quality possible, and tobuild them quickly and cost-effectively. But the guys in my

department take pride in theirjobs, and make it easy for me.

What is the most rewardingaspect of your job?Working with everyone atDynabrade. We’re like familyhere. All the departments workwell with each other, and it’s apleasure to come in every day.

Tell us about your family. I have a wonderful wife of 19years, Shelley and two greatdaughters. Janice is 16 andBethany is 12.

Who was your inspiration? I was inspired by my two grand-fathers. Both hard workersand devoted to their families.

What type of music do youlike?I listen mostly to country music.

What do you like to do inyour spare time? I enjoy listening to my daugh-ters play their instruments.Janice plays the violin in herschool orchestra, and at church.Bethany plays the guitar in herschool jazz band.

What’s the best fishing adven-ture you’ve ever been on? I can’t narrow down one bestfishing adventure! Every timeI go out is the best. I just enjoybeing outdoors.

Where were you born?I was born in Ipoh, a tin miningtown toward the north ofPeninsular Malaysia.

What cities have you lived in?Ipoh is where I grew up andstudied. My first job was inSeremban and then I movedto Petaling Jaya.

Where did you go to college?After high school I took acourse in banking studies andsubsequently post-graduatestudies in marketing.

What jobs did you have before Dynabrade?My first job was at a localbank. Then C. Pokphand (in-tegrated poultry), and on to3M (industrial abrasives). The last two were sales and marketing positions.

What year did you joinDynabrade?I joined Dynabrade Interna-tional in August, 1993.

What is your current position at Dynabrade?Regional Manager, SoutheastAsia (Malaysia, Singapore,Thailand, Vietnam).

What is the most challengingpart of your job?To chart a consistent growthcourse for my region, whilemanaging our “assets” (distri-butors and their sales force) indifferent countries, to bridgethe gap between Dynabradeand its customers.

What is the most rewardingpart of your job?Achieving the goals I set mentally and bringing smilesto people.

How would you describeyour work ethic or philosophy?I subscribe to thinking big,simplifying procedures andapplying plenty of commonsense in life and work.

What do you like most aboutworking for Dynabrade?Our people and their workingspirit.

What is your wife’s name,and the names and ages ofyour children?My wife’s name is Sharon, we have and two girls — Kimberly (11) and Jasmine (7).

What are your hobbies?To de-stress and relax, I read,watch good DVDs, and enjoyquiet times. I also like sightsee-ing and driving really cool cars too!

MIKE WOJCIECHOWSKI- Dynabrade Inc.

HO KEE BOO- Dynabrade International

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New Faces at Dynabrade

DYNABRADE, INC. • DYNABRADE INTERNATIONAL8989 Sheridan Drive, Clarence, NY 14031-1490 • Phone: (716) 631-0100 • Fax: 716-631-2073 • Int’l Fax: 716-631-2524

DYNABRADE EUROPE S.à r.l.Zone Artisanale • L-5485 Wormeldange––Haut, Luxembourg • Phone: +352 768 494 1 • Fax: +352 768 495

DYNABRADE DO BRASIL Rua Oneda, 632 • Sao Bernardo do Camp • SP - CEP 09895-280 • Phone: 55-11-4390-0133 • Fax: 55-11-4399-1067

©DYNABRADE, INC., 2007 PRINTED IN U.S.A. 6/07

BERGLIND FRIDRIKSHuman Resources Manager

ELISE ROUXCustomer Service Assistant

GURJIT SINGHRegional Manager- Northern India

NOEL ORCHARDRegional Manager-Australia, New Zealand

CLAUDIA VAN FESSEMMarketing & Sales Assistant

MARIANA RIBEIROFinancial Controller

STEVE BRIGGSProduct Manager

MIKE PAGANOController

CHRIS LIBROCKCustomer Service

EUROPE

USA

BRASIL INDIA PACIFIC RIM