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Market TrendsUS Dental Laboratories

2007

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Changes in the Laboratory Industry and Technician Profession

CAD/CAM Offshore (competition and collaboration) Dental Client Demographics Government Regulation and Enforcement Digital Impressions Dental Materials Aging Workforce Increasing market demand/dental patients

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Dental Laboratories A Changing Demographic

Approximately 12,500 dental labs and 48,000 technicians in U.S.

5,000 of those are single technician labs

Consolidation reducing customer ranks

Many technicians are reaching retirement age

By 2014, 11,000 technician employees will leave the profession

There are only 21 ADA accredited dental laboratory technology programsremaining in the United States. Down from 34 just 8 years ago. Down from just over 50, 20 years ago

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Demand for Dental Services

Increase in educational level of population

Increase in disposable income Two wage earner couples

Increase in third party coverage

Increased general health consciousness Fitness, diet Smoking and alcohol consumption

Increased awareness of dental health

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Demand for Dental Services (2)

Increase in number of older Americans We are living longer More teeth at risk

Increased income

Low but growing utilization rate

Increasing third party payments

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Solid DentalIndustry Growth

Source: Centers for Medicare and Medicaid Services

$50 $54$57 $62

$68 $73 $77$82 $87

$125

$167

$0$20$40$60$80

$100$120$140

$160$180

1997 1998 1999 2000 2001 2002 2003 2004 2005P 2010P 2015P

Total Dental Products and Services Spending($ in billions)

Projected Growth: 7%

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Chart 4-1: Dental Prosthetics Market ValueU.S., 2004 - 2014

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

A n n u a l G r o w t h R a t e

M a r

k e t V

l a u e

( U S $ M i l l i o n s )

Year

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Chart 5-2: Crown & Bridge Market by Material TypeU.S., 2007

Full-cast 6.5%

All-ceramic 24.5%

PFM Non-precious21.3%

PFM Semi-precious18.0%

PFM Precious 29.7%

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Chart 5-3: Crowns & Bridges Segmented by Material TypeU.S., 2004 - 2014

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2002 2004 2006 2008 2010 2012 2014 2016

Full-cast All-ceramic PFM Non-precious PFM Semi-precious PFM Precious

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Chart 5-4: Number of Crown Units SoldU.S., 2004 - 2014

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

0

10

20

30

40

50

60

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

A n n u a l G r o w t h R a t e

N

U m

b e r o

f U n i t s S o

l d ( M i l l i o n s )

Year

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Chart 5-5: Average Selling Price per Crown UnitU.S., 2004 - 2014

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

125

130

135

140

145

150

155

160

165

170

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

A n n u a l G r o w t h R a t e

N U m

b e r o

f U n i t s S o

l d ( M i l l i o n s )

Year

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Chart 5-6: Number of Units of Bridges SoldU.S., 2004 - 2014

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

A n n u a l G r o w t h R a t e

N U

m b e r o

f U n i t s S o

l d ( M

i l l i o n s )

Year

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Chart 5-5: Average Selling Price per Bridge UnitU.S., 2004 - 2014

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

135

140

145

150

155

160

165

170

175

180

185

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

A n n u a l G r o w t h R a t e

N U m

b e r o

f U n i t s S o

l d ( M

i l l i o n s )

Year

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Chart 4-7: Average Price of GoldU.S., 2004 - 2007

0

100

200

300

400

500

600

700

2004 2005 2006 2007

N U m

b e r o

f U n i t s S o

l d ( M i l l i o n s )

Year

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Chart 8-3: Leading Competitors in the Market for Dental AlloysU.S., 2007

Argen 45.0%

Ivoclar 11.0% Dentsply 10.0%

Jensen 9.0%

Pentron 9.0%

Aurident 4.0%

Captek 3.0%

Sterngold 3.0%

Metalor 2.0%Other 4.0%

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Market for Dental Porcelain PowderU.S., 2004 - 2014

Year Units Sold Growth (%)Quantity per

Unit (g)ASP per

Gram (US$)ASP per Unit

(US$) Growth (%)Market Value

(US$) Growth

2004 36,276,880 1.0 $0.87 $0.87 $31,560,885

2005 39,350,421 8.5% 1.0 $0.88 $0.88 1.1% $34,628,371 9.7%

2006 42,414,833 7.8% 1.0 $0.89 $0.89 1.1% $37,749,201 9.0%2007 45,442,500 7.1% 1.0 $0.90 $0.90 1.1% $40,898,250 8.3%

2008 48,704,592 7.2% 1.0 $0.91 $0.91 1.1% $44,321,179 8.4%

2009 52,034,048 6.8% 1.0 $0.92 $0.92 1.1% $47,871,324 8.0%

2010 55,650,506 7.0% 1.0 $0.93 $0.93 1.1% $51,754,970 8.1%

2011 59,580,181 7.1% 1.0 $0.94 $0.94 1.1% $56,005,370 8.2%

2012 64,010,737 7.4% 1.0 $0.95 $0.95 1.1% $60,810,200 8.6%2013 68,521,693 7.0% 1.0 $0.96 $0.96 1.1% $65,780,825 8.2%

2014 73,412,654 7.1% 1.0 $0.97 $0.97 1.1% $71,210,274 8.3%

7.1% 1.1% 8.2%

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Chart 8-4: Market for Dental Porcelain Powder and Growth RatesU.S., 2004 - 2014

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

A n n u a l G r o w t h R a t e

N U m

b e r o

f U n i t s S o

l d ( M i l l i o n s )

Year