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Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

WELCOME !!!. Distributor Training Pittcon - 2009. Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803. Your Hosts. Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803. Agenda. John 2009 Business Outlook Status of RoHS Compliance

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Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

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  1. WELCOME !!! Distributor Training Pittcon - 2009 Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  2. Your Hosts Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  3. Agenda John 2009 Business Outlook Status of RoHS Compliance Jeff New LabAlliance Website New Pump Products Prep-250 Versa Grad Tony Agilent Detectors PDA UV Fluorescence Kert Systems Component Selection How to Quote Pre-Configured Systems Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  4. Primary Markets Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  5. Total Separations Instrument Market Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  6. 2009 Outlook Major Economic and Business Factors The world-wide recession is becoming a significant concern to our industry. Most suppliers are seeing a slowdown with uncertainty. Waters expects up to a -9% sales decline, with growth still possible (although “back-end loaded”). UHP will drive demand. Pharma business is currently sustained, along with environmental and food safety. Industrial customers and Universities are down. Government stimulus may help our markets with capital flowing into medical research, alternative fuels and environmental testing. Or industry is in better shape than most: Not tied to construction, automotive or retail. Waters expects China to be steady in 2009. Companies that do not rely on credit, maintain manufacturing and have a solid reputation will survive and prosper after recovery. Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  7. 2009 Outlook The Situation So Far for SSI-LabAlliance Business is steady across our customer base - OEM and Distribution The First Quarter will be down from previous years, but manageable We are planning for a favorable year with minor revenue improvement and reasonable profits, although Sales Growth may be negative (“cautiously optimistic”) Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  8. Areas for SSI Growth Ultra High Pressure and Ultra Fast Flow Chromatography 18,000 p.s.i. and 5 ml/min Pump Kits for OEM Customers Complete Systems for Distribution Demand Driven By Cost Reductions due to Fast Analysis Green Chemistry (lower solvent use) Innovative Separations (proteins, etc.) Future 25,000 – 30,000 p.s.i.

  9. Areas for SSI Growth Specialty Pumps (only from SSI) Thermoelectrically Cooled CO2 Pumps High Performance Flash Chromatography Pumps (up to 300 ml/min) 250 ml/min (+) Pumps (High Pressure) for Preparative LC and Process Applications Demand Driven By: Green Chemistry (CO2 used as solvent) Fast Screening of Drug Candidates Limited Suppliers of High Flow, High Pressure Pumps Serving Specialty Markets Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  10. Areas for SSI Growth Wide Portfolio of Products Full Range of Value-Oriented Single-piston and Dual-Piston Pumps for a Variety of Instrument and Application Needs Complete Detector Line able to Integrate with Pumps for High Performance Systems Other Hardware and Software Components, including Fluid Path, Data and Control Demand Driven By: Need for Mid-Tier Suppliers Providing a Diverse Offering in a Competitive Market Limited Suppliers with a Full Range of Modular HPLC Components and the Ability to Customize for Customer Needs Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  11. 2009 Outlook Initiatives Establish Agilent - SSI Business Partnership (agreement signed) Utilize the Agilent offering to its full potential Keep the product development pipeline full to support this and other opportunities – focus on defined, higher level systems When problems occur, over-react to customer service Convey the Message: Design & Manufacturing for over 40 years Continue investment into Design & Manufacturing capability Update and improve Websites / Specifications / Performance Data Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  12. New System with Agilent Components Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  13. 2009 Outlook Our Commitment SSI-LabAlliance will survive the downturn - The business model is strong and sustainable Our diverse customer base and product offering give us a buffer against market fluctuations We are committed to a strong LabAlliance Distribution business, and will support it with: Best possible sources for Detectors, Software, etc. Ongoing Pump Development to meet market needs Training, Service and Sales Support Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  14. RoHS Compliance Like all instrument manufacturers in our industry, SSI is in the process of making changes to our product line to achieve RoHS compliance. As you may know, the current Directive on Restriction of Hazardous Substances (RoHS), 2002/95/EC (created by the European Union), restricts placing on the market equipment containing six substances: cadmium, lead, mercury, hexavalent chromium, and certain polybrominated flame retardants. Although laboratory instruments (like HPLC systems and components) are currently exempt from RoHS requirements (and are expected to remain exempt for several years), our industry is proactively making the conversion. SSI plans to be fully RoHS compliant by June, 2009. The primary change in the products affects the Printed Circuit Boards, or PCBs. These components have traditionally been assembled with standard tin-lead solder. Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  15. RoHS Compliance For RoHS compliance, a silver solder process is used. There are also other minor parts that are affected, such as chromate conversion coatings on metal brackets. These changes do not affect form, fit or function. Current Board Series-III Board Set New RoHS Compliant Board Set NOTE: The RoHS compliant PCBs are distinguished from the old-style board by color. RoHS boards are RED, as shown above. Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  16. RoHS Compliance Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  17. RoHS Compliance SERIAL NUMBER TRACKING The cutover to the RoHS compliant PCBs will be tracked at SSI by Serial Number. In the future, for service needs, SSI will have records showing the board version in your customer’s pump. SPARE PARTS The RoHS compliant PCBs used for spare parts will be assigned a new Part Number. You will be advised on the change for your particular product. As in the past, the spare PCB will likely include the proper EPROM for your product, already installed. General purpose spare boards (without EPROM) will also be available. Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

  18. RoHS Compliance MANUALS If you receive a manual with your pump, it will be updated to reflect the board change. Primarily, the Spare Parts List will change, with the battery spare part removed and a new Part Number for the spare PCB. In some cases, a manual may cover both old-style and RoHS compliant PCBs. In this case, the customer will be told to identify which version of the PCB is in the pump (by color) and choose the correct spare part accordingly. Other than battery and PCB replacement, there are no maintenance procedures affected. FULL RoHS COMPLIANCE This change in PCB does not certify the pump as RoHS compliant. Other minor changes are in process, primarily dealing with documentation from SSI’s suppliers that show that all incoming parts and materials are RoHS certified. Once complete, you will be advised that your product is now RoHS compliant. Each pump will indicate compliance with a sticker or silk screened marking on the back, and will be shipped with a RoHS certificate. A schedule for completing this process is found on our website www.ssihplc.com . Scientific Systems, Inc. 349 N. Science Park Road State College, PA 16803

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