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Paint material price reviews and process - 25 January 2010

Further to our announcement on 22nd December 2009 announcing PPG's paint material price adjustment, the variable nature of paint materials price changes by the leading brands has led to questions regarding our process for implementing these changes in our system.

The following outlines our process going forward:

• When the paint manufacturers announce price changes, we then request detailed data supporting this from the manufacturers

• On receipt of this detailed data we then forward to AZT for calculation and tabulation for all relevant paint operations and paint types

• Once completed this is then returned to Audatex for compilation and formatting of the relevant paint tables to reflect market usage. A calculation is then made to indicate a % adjustment for communication to the market. The relevant tables and data are then prepared for release in the system

• The typical processing time for all of the above activities is three weeks from receipt of the detailed data from the paint manufacturers

As a commitment to our customers, for the following brands only, PPG, Nexa Autocolor, Sikkens, Standox, Spies Hecker, Dupont, 3M, Glasurit, R-M, we will release pricing table updates either on their effective date of change or within three weeks following receipt of the detailed data from the paint manufacturers if after the effective date. The exception to this is where multiple market changes are to be made within the same 30 day period, where for the sake of efficiency for all we will amalgamate these changes into one release.

Current Status:

• The change for PPG price increases was reflected in AudaEnterpriseGold, on 1st January 2010

• We are in receipt of the relevant data from Akzo Nobel and therefore we will implement the necessary paint price table adjustment for Sikkens in AudaEnterpriseGold on 1st February 2010, hence matching their effective date

• For the remaining six brands that have announced proposed changes, on the proviso that we receive the detailed data in time, under our amalgamated 30 day provision we will make a further system update on Monday 1st March 2010

We thank all our customers, colleagues and partners for their ongoing support.