Your source when performance is critical

2005 O.E. Brake Shim Presentation

Technologies

2004 Sales – $265.1 Mil.Advanced power systemsAssociated electronicsGovernment / space Commercial applications

Filtration & Minerals

2004 Sales - $89.2 Mil.Industrial mineralsUsed as filter aids, absorbents, filters & soil enhancements

Automotive

2004 Sales - $448.2 Mil.NVH components & assembliesFiltration productsRubber coated materialsTier 1 supplierAmong top 125 North American suppliers

Established in 184340 plants in the U.S., Canada, China, Mexico, Germany4,100 employees worldwide

Eagle Picher, Inc.

Hillsdale Division

Precision machined components DampersFiltration productsKnucklesDriveline products Pump components

Wolverine Division

Rubber coated metal & fiberglass material and components for automotive OEM, aftermarket & industrial markets worldwide

Automotive

Wolverine Global Manufacturing Capability

70 years of rubber coated metals expertise for the automotive & industrial markets

300,000 sq. ft. manufacturing space worldwide

ISO / TS 16949

State-of-the-art computer controlled coating lines

Unsurpassed bond integrity of rubber to metal

5 coating lines providingflexibility to support global demand

Wolverine Division

65 Different Material Composites in Production12 Experimental Composites – Active Development

Application-Specific Materials Selection

Steel-N®

Alum-N®

Foamet®

FluoroelastomerHNBRLamiseal®

Proprietary Materials – Robust Solutions

Physical testing of materials

Vibration damping characteristics

Modal analysis

Disc brake dynamometer testing

Wolverine Product & Material Validation

Majority of applications utilize Dual Isolation Material on a Single Layer of Steel Percentages = Wolverine brake shims on light vehicle sales units, by region

34.7 of 58.0 MillionLight Vehicles

9.7 of 18.7M UnitsHigh penetration on BMW & Mercedes

7.5 of 16.0M Units132 of 288 Models*

17.5 of 20.3M Units85% Japan / 87% Korea

*Based on 2003 J.D. Power & Associates Application Listing

Wolverine’s Global O.E.M. Brake Shim Product Line Sales

O.E.M.

O.E.M. Vehicle 1

Brake SystemSupplier B

Brake SystemSupplier C

Brake SystemSupplier A

MaterialSpec.

Approval

Friction 1 Friction 2 Friction 3 Friction 4

Shim ‘A’ Shim ‘B’ Shim ‘C’ Shim ‘D’ Wolverine

CostApproval

Friction Suppliers

ShimSuppliers

Caliper & Rotor

Suppliers

Wolverine’s Products are Consistently Chosen via a Complex Sourcing Process

O.E.M. Disc Brake Business Model

2003 Initial Quality Survey (IQS) Results

υ Things Gone Wrong (TGW)

υ Things Gone Right (TGR)

υ Total Vehicle

υ Focus on quality

InitialQualityStudy(IQS)

υ Total Vehicleυ Focus on

design satisfaction

Automotive Performance

Execution and Layout Study

(APEAL)

υ Penetration, desirability, and pricing of 45 features

FeatureContenting

Report(FCR)

υ Quality and design satisfaction

υ Component-focused−Seats−Audio−Brake−HVAC

ComponentQualityReports(CQRs)

−Interior −Acoustics−Transmission

= Focus of Wolverine Study

Vehicle Quality Survey

Focuses on quality – Things Gone Wrong (TGW) – for the entire vehicle, after 90 days

Measured by problems per 100 vehicles (PP100)

The industry standard for initial quality

Purchased by every vehicle manufacturer

Published in two waves:– Full report (IQS): May 6– 2nd Quarter report (2QIQS):

October 21

Utilized most recent data available – Wave 2, 2003: Mar & Apr (2003)

registrants sampled in June & July

Focused on TGW – Brake Noise PP100 & Squeak / Squeal Percentage, by Make / Model included in the IQS study (see next page)

EaglePicher Wolverine provided listing of all makes/models in the IQS study, that utilize O.E. Brake Shims supplied by Wolverine– 132 of 288 Vehicles Utilize Wolverine Shims (46%)

J.D. Power & Associates calculated results (Wolverine vs. Other), by Make/Model & reviewed results with EaglePicher Wolverine on 12/4/03

Initial Quality Study (IQS) TGW – Brake Noise Analysis

2003 Vehicle Quality Survey

11

Q.13 Ride, Handling and Braking – Braking-specific questions

Brakes vibrate/shudder at low speeds at high speeds in panic stops

Parking brake problem

groan grindsqueak/squealBrakes are noisy…

1

Brake pedal... requires too much effort feels mushy/soft

ABS light indicated a problem 1

to the rightBrakes Pull... to the left

Traction control system problem 1

Brakes don’t have enough stopping power 1

1

1

1

= Focus of Wolverine Analysis

Brake & Handling Quality Report – TGW Questions

“Brake Noise” is the 3rd Highest Complaint in the Industry

– Industry Average is 3.0 PP100 (based on latest data)

– Only behind Wind Noise & Excessive Fuel Consumption

23% of All Problems in the Study are Related to Ride, Handling & Braking

– #1 Category for Things Gone Wrong (TGW)

Brake Noise is the #1 Problem w/ Brake Systems in the U.S., U.K. and Germany Studies

Brake Noise is the 2nd Highest Problem At 3 Years, based on the U.S. Vehicle

Dependability Study (VDS)

– Industry Average is 10.9 PP100

74% of all Brake Noise Problems are “Squeak / Squeal” Issues

– Which can be improved upon (or) eliminated by brake shim materials & design

Vehicle Quality Survey – Brake Noise

Nissan 3.0Mazda 2.9Ford 2.8Hyundai 2.7Honda 2.6Chevrolet 2.4Toyota 2.4Cadillac 2.2Mercedes Benz 2.0Lincoln 1.9Acura 1.5Subaru 1.5BMW N.A. 1.4GMC Truck 1.4Mercury 1.4Chrysler 1.2Lexus 0.9Hummer 0.0

Saab 19.1Porsche 11.3Jeep 10.7Land Rover 7.4Jaguar 7.4Infiniti 6.2Suzuki 5.5Dodge 5.1Pontiac 4.6Buick 4.4Isuzu 4.0Volvo 3.6Kia 3.5Mitsubishi 3.5Saturn 3.3Oldsmobile 3.1VW 3.1 A

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J.D. Power & Associates – 2003 IQS Results PP100 Brake Noise

Vehicles That Utilize Wolverine Brake Shims HaveFewer PP100 Brake Noise Complaints

Overall improvement consistent in 2002 & 2003 J.D. Power & AssociatesData Analysis

Improvement in brake noise & squeak/squeal categories

J.D. Power & Associates – Initial Quality Survey

Number of PP100Vehicle Models Brake Noise

Industry Average 288 3.0

Wolverine Shims 132 2.5

Other Shims 156 3.6

31% Improvement with Wolverine Shims 0.9PP100

J.D. Power & Associates – 2003 Wave 2 –Vehicle Quality Survey PP100 Brake Noise

Number of PP100Vehicle Models Brake Noise

Industry Average 221 3.2

Wolverine Shims 104 2.6

Other Shims 117 3.9

33% Improvement with Wolverine Shims 1.3PP100

Year-Over-Year Results Are Consistent

J.D. Power & Associates – 2002 Wave 2 –Vehicle Quality Survey PP100 Brake Noise

Wolverine Supplies Shims To 46% Of Vehicles In North America

*

*Percentages shown represent the % of models with Wolverine Brake Shims, by OEM

Top 6 OEM’s in N.A.

Wolverine Shim Applications, N.A.

*Percentages shown represent the % of models using Wolverine Brake Shims, by OEM

Low PP100 Rates When Wolverine Supplies More Than 40% Of Shims

*

Wolverine Shim Performance vs. Other Suppliers

WOLVERINE“DUAL NOISEINSULATION”

(Single Steel BrakeShim Material)

.015" STEEL(Constraint Layer)

.005"ACTIVE MATERIAL

(Nitrile Rubber)

.005"ACTIVE MATERIAL

(Nitrile Rubber)

NoiseInsulation

from Caliper

NoiseInsulation from Plate

* Can include an additional layer of PSA.

Wolverine hasover 6x the active noise reduction material

compared to dual constrained layer technology

.0015Active

Material

.005Active

Material

.005Active

Material

Material Interacts Directly with Noise & Vibration Elements,

Improving Performance

Steel Layers Interact with Much Lower Volume of Material,

Limiting Performance

Wolverine’s Active Material – .010 Competitors Active Material – .0015

Viscoelastic Material Comparison

Widest Range of Viscoelastic MaterialsDesigned to Isolate Sound / Insulate Heat Generated During Braking

Validation, Testing & Product Expertise

to Resolve Specific Noise Problems

Apply the Right Materials

For theRight Application

Integration of Shim Selection w/Component

Assembly Design Requirements

Caliper, Rotor & Pad Assembly, Vehicle

Weight, etc.

Chemically Bonded Elastomer Coatings Provide Superior Durability & Corrosion Resistance

System Approach Enables Wolverine’s Products to Improve Vehicle Performance

Wolverine’s Technical Value Proposition

Sound Pressure Level vs. Frequency for all Stops Above Threshold

45

60

75

90

105

120

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000Frequency (Hz)

Soun

d Pr

essu

re L

evel

(d

BA

)

Forward Reverse Drag Decel

Sound Pressure Level vs. Frequency for all Stops Above Threshold

45

60

75

90

105

120

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000Frequency (Hz)

Soun

d Pr

essu

re L

evel

(dB

A)

Forward Reverse Drag Decel

Brake noise testing without Wolverine materials

Brake noise testing with Wolverine materials

Measuring Performance Impact ofWolverine Materials

EnvironmentWolverineSolution

Representative Material

Real World Application

Hyundai Santa Fe

Jeep Grand Cherokee

Lincoln Navigator

MS-180351510-28

MS-180351510-2

MS-180692005-1-24

Extreme Cold Temperature

Cold Temperature

Multi-Temperature

Technical Benefits – Variety of Tuneable Solutions for Multiple Problems

The Solution…

Your source when performance is critical