Rear Projection by pengxiang


          Management of Light ®   

                            Global Market
                              August 2009

The Management of Light ®          
 Reflexite “At a Glance”
                  Core Technologies                Fundamentals
                  •         Optical Engineering    •   Technology
                  •         Microreplication       •   Ownership
                  •         Polymer Processing     •   Quality

                               Three Business Units
                               •   Reflective Products Business
                               •   Display Optics
                               •   Optical Solutions Business

The Management of Light ®                                 
Reflexite                   Reflexite Global Locations
The Management of Light ®
                                450 employees Worldwide

     •     Inc. Magazine “Entrepreneurs of the Year, 1995
     •     NCEO’s “Most Innovative ESOP Company”, 2006
     •     NE ESOP Company of the Year, 2005
     •     WSJ “Top 15 Winning Workplaces in USA”, 2007
    Reflexite’s focus on creating a winning environment keeps voluntary
        turnover below 1% per year and average tenure of 14 years

Reflexite                                                         Slide 4
The Management of Light ®                        
  Outlook By Market

The Management of Light ®
            Reflexite Corporation: Reflective Business
                             Sales Trends by Region

                                    FY 08    FY 09   FY 10
                                 Americas   Europe   Asia-Pacific

Note: Reflexite’s FY10 began April 1, 2009
 The Management of Light ®                                
                     NA Transportation Markets:
                     “Couldn’t be Much Worse”

• Tractor Trailer “TT” Markings = Specification market
• TT Building
    – Typically a leading indicator of our economy
    – Represent 25+% of NA sales – heavily influence results
   – “New builds” decimated in USA since 2006
• Our Hope: New international laws will mandate usage in large markets
  going forward (Europe, India, etc.)
  The Management of Light ®                          
                 NA Road Building Market:
                                 “Buoyed by Paving”

• Stimulus money is being obligated but not flowing all the way to contractors
  as quickly as everyone had hoped. Hold ups:
    – State DOTs (delays due to environmental, project planning, etc.)
    – Priorities (emphasis went to projects that were “shovel ready” like paving)
    – Tax Revenues down, so spending is being controlled despite availability of
      stimulus money
• Paving projects have helped our business (driving sales of cone collars,
  drums) - Road Building is up 5% over prior year
• Concerns on Highway Bill. Current bill runs out in Sept. Options:
    – Extension?
    – New Bill?
     The Management of Light ®                              
                              ARRA Overview

• Shovel Ready Projects like road paving have seen the
  quickest pick-up
• Construction season may run out before funds can be spent

  The Management of Light ®           
                             Lighting Business:
                     “Delayed Downturn in Full Effect”
                                   Phillips                         Aero
                                   Pure |FX

  Pendant                                       Siteco
 Luminaire                                      Lumos

• Lighting Sector tends to lag general economy
• Our customers are reporting a big decline since March/April
  continuing through 2009 and possibly beyond
• Nonetheless, we are seeing growth in sales driven by:
    – Interest in energy efficient products
    – The continued rise of solid state lighting (LED Products)

 The Management of Light ®                         
                                  LCD Display Market:
                                  Surprisingly Resilient
                                                 LCD Unit Volume Shipments by Quarter

•   Price drops and HD content have driven resumed unit volume growth in large format (LCD
    TV) sector – yet revenues are down!
     – Don’t expect prices to come down this Christmas
•   Other segments are recovering
•   Hot Niches in Display
      Mini Notebooks       3D Theatre       LED Backlights
      Paper Displays       OLED TV’s

      The Management of Light ®                                   
                     Long Term Growth Oppty.
                            CPV System with Tracker   Small Installation (0,25 MW)


• Reflexite makes optics for concentrating
  Photovoltaic (CPV) systems
• Niche Product for Grid-tied systems
• Typical Customers are Utility Companies
The Management of Light ®                             
           Solar Market Outlook: Past


 • 2008: A breakout year driven by Spanish “feed-in tariff”

Reflexite                                        Slide 13
The Management of Light ®             
       Solar Market Outlook: Present
• In 2009, solar installations will be flat or slightly down, due mainly to:
    – Lack of availability of credit for the financing of installation projects
    – Change in Spanish Govt. Subsidy – Spain capped at 375MW down from 2,511MW
• Significant chip capacity will come on-line for Flat Panel PV
             Banker’s Consensus:
                                                                      Chip Capacity
            Global Solar Installations

                      Source: MIT Solar Energy Conference June 2009   Source: Goldman Sachs, MIT Conference July 09

  Reflexite                                                                                Slide 14
  The Management of Light ®                                                     
             Solar Market Outlook: Future
                                                                               Banker’s Consensus:
            What the industry pundits say…                                    Global Solar Installations

           Source: SPIA Global Market Outlook for Photovoltaics, April 2009   Source: MIT Solar Energy Conference June 2009

•   Consensus is for “Recovery in 2010”
•   Policy decision made in 2009 will have a big effect on the extent of the recovery
    in 2010
•   Policy environment in US toward solar:
     – Currently very favorable
     – Budget Crisis and Economy may dampen the enthusiasm and limit the actual action
      Reflexite                                                                                    Slide 15
      The Management of Light ®                                                         
            Reflexite Tactics in Downturn
• Above all, COMMUNICATE and create forums for open discussion
• Encourage employees to put their “Owner Hats” on
• Be creative and maximize government assistance, i.e.
    – Shared Work Program
    – Salary Reduction Programs (with employee choice)
• Exercise Fiscal Prudence
    – Conservative sales outlook
    – Cut costs quickly to make profit on lower sales
    – Cash Management
• Exploit global footprint
    – Accelerate migration to low cost manufacturing facilities
    – Seek to maximize logistics benefits and opportunities
    – Focus on the growth opportunities that still exist

     The Management of Light ®                          

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