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By Wilcham Industries, Inc. Slamming the Door on Rising Fuel Costs

TM. By Wilcham Industries, Inc. Slamming the Door on Rising Fuel Costs. State of the World Union . . . Food & Oil Rising Costs = Global Warming. $100???. The grain it takes to fill an SUV tank could feed a person for 1 year!!!. OPEC Oil Pricing through 2 nd Week - March.

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By Wilcham Industries, Inc. Slamming the Door on Rising Fuel Costs

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  1. TM By Wilcham Industries, Inc. Slammingthe Door on Rising Fuel Costs

  2. State of the World Union . . . Food & Oil Rising Costs = Global Warming $100??? The grain it takes to fill an SUV tank could feed a person for 1 year!!! OPEC Oil Pricing through 2nd Week - March Oil exceeded $135 per barrel -- 5/22/08 100% of Corn and Soybean crops only offset 20% of Total US Fuel demand!!! $6.00 per Gallon Gas Coming Soon!!!

  3. Most Difficult Cost Environment in History! Reason we are here today

  4. What is being said by Industry Leading Companies? Initiatives SUPERVALU is active in Food Marketing Institute’s (FMI’s) Sustainability Task Force and FMI’s Energy and Technical Services Committee. SUPERVALU designed and built its first Leadership in Energy and Environmental Design (LEED) store in Worcester, Mass. The store opened in January 2005 and was the second LEED certified grocery store in the country. SUPERVALU has a senior manager of recycling/sustainable operations dedicated to initiating and managing key environmental activities across the company. Several SUPERVALU banner stores sponsor earth-friendly holiday activities in many of our divisions including initiatives and projects to celebrate Earth Day. • Safeway is one of the top retail purchasers of wind energy. We buy enough wind energy to power all of our fuel stations and all of our stores in San Francisco, CA, Boulder, CO, and our Pleasanton corporate offices. • Safeway ranks as the 5th largest retail purchaser of renewable power. • We are the first retailer and grocer to join both the Chicago Climate Exchange and the California Climate Action registry. • We are reducing energy consumption by designing more efficient stores and using new technology, like no-heat freezer doors, to reduce electricity use. • Safeway has long been a leader in recycling, and last year we recycled more than 500,000 tons of cardboard, plastics and compostable material.

  5. What is being said by Industry Leading Companies?

  6. What is being said by Industry Leading Companies?

  7. COLDFRONT aligned with YOUR “Going Green” initiatives

  8. “Going Green” initiative: • Environmental excellence is always on the menu at USF. We are working hard to build environmental considerations into the way we do business by minimizing environmental impact from energy use and solid waste. We have built sustainability metrics into our standards for operational excellence. These metrics are accompanied by best practices which will be rolled out to Operations in every division. We encourage investments in both education and technology strategies to improve the energy efficiency of our fleet, conserve energy in our distribution centers and decrease the volume of waste sent to landfills. These metrics will allow us to better track our environmental impact, compare divisions, and drive up overall environmental performance across the company. Through information and tools we will equip operations managers to make better decisions on behalf of the environment. • Here are just a few of the ways U.S. Foodservice is making a difference: • We have made a corporate level commitment to two of the U.S. Environmental Protection Agency's voluntary partnership programs - Energy Star for buildings and SmartWay Transport for our fleet. • Through Energy Star and SmartWay we are conducting an assessment of our environmental footprint and identifying goals and plans for improvement. • We are integrating metrics for increasing fuel efficiency, decreasing electricity consumption and increasing recycled tonnage into our operating procedures. • We formed pilot environmental performance teams in several of our divisions. • We are continually encouraging information sharing among divisions that are making a difference in their communities. • Environmental excellence is always on the menu at USF.

  9. Current Reefer Trucking practices 40+ years with no significant technological advancements or improvements • Daily Routine for refrigerated trailer delivery • Turning on unit • Waiting for reefer to cool (40+ minutes) • Load trailer – reefer running with door open • Deliver product – how many stops? • Waiting for receiving dock space • Leave door open during stops • Repeat Steps 4 through 6 for each additional stop • Return to DC with reefer still cooling entire trailer

  10. Introducing the “COLDFRONT” 21st Century Technology Covered Wagon Technology Bulkheads Center Divide VS Blankets ISN’T IT A TIME FOR CHANGE?

  11. The COLDFRONT system allows drivers to reduce the area needed to refrigerate Why have to refrigerate this much space ALL of the time? Use COLDFRONT and control the amount of space to refrigerate

  12. How does the COLDFRONT work? Tracks from Above Slides along tracks – half way down Fully Engaged The COLDFRONT system is unique. It tracks from ceiling space down to cargo floor. When driver releases a COLDFRONT, it tracks upwards above the “freight safe” work space. It also will not interfere with cooling due to its modern design. As the driver progresses through his work day, the Coldfront is utilized where refrigeration is needed. Keeping the COLD in the FRONT.

  13. COLDFRONT Product Specifications Wilcham Industries has hired Transglobal Doors as manufacturer Over 40 Years Experience Panels Rollers • Panel Composition: • Kemlite Skins • 1 ½” Foam Core • PVC Top, Bottom, Side Caps • Hardware: • E-Coated Center and End Hinges • 2” Premium sealed rollers with extended shafts • Dual Roller Top for smooth operation • Seals: • Belted Rubber high-strength side and top seals • 25+ years of product life (used by UPS) • Spring Assembly: • Dual Spring Easy-Wind assembly • Track Assembly: • High-strength Galvanized Steel 2” Track • Galvanized mounting angle with track protector • Track designed to maintain 5” Header Seals Spring Tracks

  14. COLDFRONT Features & Benefits FOUR reasons to implement the COLDFRONT system • FUEL SAVINGS • SAFER WORK ENVIRONMENT • PRODUCTIVITY • ALIGNS WITH COMPANY SUSTAINABILITY INITIATIVES

  15. COLDFRONT Controlled Test Program Partitions 1 2 3 4 5 Standard Trailer- Fuel Consumption Stop #1 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.182 + 0.182 + 0.182 + 0.182 = 0.910 gallons Stop #2 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.182 + 0.182 + 0.182 + 0.384 = 1.112 gallons Stop #3 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.182 + 0.182 + 0.384 + 0.384 = 1.314 gallons Stop #4 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.182 + 0.384 + 0.384 + 0.384 = 1.516 gallons Stop #5 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.384 + 0.384 + 0.384 + 0.384 = 1.718 gallons 7.5 hours Estimated Total = 6.570 gallons

  16. COLDFRONT Controlled Test Program Partitions 1 2 3 4 5 Coldfront Equipped Trailer- Fuel Consumption Stop #1 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.182 + 0.182 + 0.182 + 0.182 = 0.910 gallons Stop #2 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.182 + 0.182 + 0.182 + 0.000 = 0.728 gallons Stop #3 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.182 + 0.182 + 0.000 + 0.000 = 0.546 gallons Stop #4 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.182 + 0.000 + 0.000 + 0.000 = 0.364 gallons Stop #5 Fuel = P1 + P2 + P3 + P4 + P5 1.5 hours = 0.182 + 0.000 + 0.000 + 0.000 + 0.000 = 0.182 gallons 7.5 hours Estimated Total = 2.730 gallons

  17. Estimated Fuel Savings • Trailers equipped with COLDFRONT consume less fuel since less air space is refrigerated over time • Unequipped trailers consume more fuel over time since more air space is refrigerated as loads are delivered • COLDFRONT is utilized only where refrigeration is needed Standard trailer = 6.570 gallons Trailer with COLDFRONT installed = 2.730 gallons Fuel Saved = 3.840 gallons Savings = >58%  Hypothetical 40 ft trailer equipped with 2 COLDFRONT units; 5 equal loads and stops; 7.5 hours total elapsed time; and a fuel consumption rate of 1.28 gal/hr

  18. Fuel Savings delivered by COLDFRONT Fuel Consumption – Cost Analysis Lasts 15+ Years *Savings calculated from test results What are the Cost Savings over the Life of the COLDFRONT?

  19. COLDFRONT Features & Benefits FOUR reasons to implement the COLDFRONT system • FUEL SAVINGS • SAFER WORK ENVIRONMENT • PRODUCTIVITY • ALIGNS WITH COMPANY SUSTAINABILITY INITIATIVES

  20. COLDFRONT can deliver more than just Fuel Savings 2 Potential Cost Savings due to Safer Work Environment • Lower Insurance Premiums • - COLDFRONT technology is safer for workers • 2. Fewer Workers Comp claims • - back injuries reduced from easy operation How much more $$$ can be saved from this simple solution?

  21. COLDFRONT Features & Benefits FOUR reasons to implement the COLDFRONT system • FUEL SAVINGS • SAFER WORK ENVIRONMENT • PRODUCTIVITY • ALIGNS WITH COMPANY SUSTAINABILITY INITIATIVES

  22. COLDFRONT drives Productivity Delivering Efficiency in different capacities Remove these from your yard! • Why Install Bulkheads or Center Divide Units? • COLDFRONTS are engaged in less than 3 SECONDS • competitive products take 3 to 5 minutes to install • oftentimes Drivers simply strap the Bulkhead to the wall once they leave the yard allowing the Reefer to run all day long • Ease of Operation • COLDFRONTS installed after product is loaded by pulling straps • Loaders don’t waste time – 3 SECONDS TO PULL IN PLACE • Trailers are loaded quicker building efficiency in the warehouse • Functional Loading Patterns • COLDFRONTS could allow for new loading patterns saving Drivers time loading and unloading trailers just to get to certain pallets • Warehouse Loading more efficient by trailer categorization These are a few applications of the COLDFRONT which will save you Time and Money in Trailer Configurations. Can you think of more???

  23. COLDFRONT Pricing Architecture

  24. COLDFRONT Pricing Architecture Every Customer we have visited has a Bulkhead pile that looks just like thisoutside the DC located near the Trash Bins This problem warrants action! Wilcham Industries wants to limit the liability of a wasted investment creatively designing a program where “garbage” will be eliminated. Coldfronts last 15+ years, not 60-120 days.

  25. COLDFRONT TEST PROGRAM Special Introductory Offer – Wilcham’s exclusive PIP Program “The Proof is in the Pudding” Better than Bracket 3 Pricing • Discount Pricing • must purchase 10 or more “L” Units • cost per unit is $2,600.00 • Bulkhead Buy Back Program • Wilcham to take off-invoice up to $500.00 per Bulkhead • 1 Bulkhead per every “L” Unit installed (no limit) Creates exciting “Win-Win” for Wilcham and our customers. We believe in our product so strongly that you will have no need for Bulkheads. We are willing to take them off your hands by discounting the price of Coldfront’s even further.

  26. Wilcham’s - Corporate Give Back Wilcham Industries will accrue 3% of a customer’s Total Purchase Order to be delivered back to the customer on a quarterly, bi-annual, or annual basis What could this funding be utilized on? What are your thoughts? What came to mind? Training Driver Meetings Safety Incentives BBQ’s Special Weekend Events Holiday Parties Fuel Savings Spiffs Wilcham understands budgets are tight or non-existent for these types of events and wants to partner towards delivering a better and safer work environment

  27. Questions / Next Steps ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________

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