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Taiwan ASD Market Opportunity

Kidde Fenwal & Kidde Products

June 2007

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ISSUES• Taiwanese market is over 1,000 ASD detectors per

year – currently being satisfied by VESDA & Airsense• Nearly all applications are for clean rooms• Local product approval required to sell as of 2007• To secure local approval, products must have

– UL listing– All display outputs in local language

• UTCFS currently cannot meet this requirement– Analaser II, Orion XT & Class are UL listed, but do not

have Chinese display– Hart XL has display options for traditional and simplified

Chinese (developed in conjunction with UTCRC & university of Beijing in 2006), but is not UL listed.

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PROPOSAL• Incorporate Chinese display into Analaser II, Orion XT

& Class products – action Kidde Products (TCD end June 2007)

• Cross-list UL listing to Hart XL – action Kidde Fenwal (TCD end June 2007)

• Secure local approval for all UTCFS aspirating smoke detection products – action Kidde Products in conjunction with Kidde China (Commence 1st July 2007)

• Distribute approved products into Taiwan via appropriate distribution channels – action Kidde China (as this is a specification led market, promotion can begin in July 2007).

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JUSTIFICATION• Current UTCFS sales to Taiwan negligible due to lack

of appropriate product / approval package• Forecast provided by Kidde China for future sales if no

locally approved product available = zero• Forecast provided by Kidde China for future sales if

locally approved product available shown below (US$k)

• Cost of implementation is negligible.

Taiwan 2003 2004 2005 2006 2007 2008 2009 2010 2011

HLK/Sensor 23 0 3 46 20 40 60 60 60

Pao An 0 0 39 0 0 30 25 25 25

Growth initiative* - Vesda displacement 0 0 0 0 20 40 170 200 350

Total 23 0 42 46 40 110 255 285 435

* See K Miller’s visit report (7 – 14 May 2007)

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FURTHER OPPORTUNITY

• HART XL’s Chinese approval (Sheng Yang) needs to be revalidated against the new Chinese standard by September 1 2007

• Kidde Products to renew HART XL approval and secure additional approval for HART Mini during July & August 2007 (cost US$ 36k)

• These approvals could be cross listed to KNA brands as appropriate.