NCH (NCH) SC TO-T/A Third party tender offer statement (amended)

Exhibit (c)(vi)

Preliminary & Confidential

PROJECT RANGER

Presentation to the Special Committee of the Board of Directors

December 5, 2001

Disclaimer

In preparing the enclosed materials, Dresdner Kleinwort Wasserstein, Inc. (“DrKW”) has assumed and relied upon the accuracy and completeness of all of the historical financial and other information provided to or discussed with us by NCH Corporation (“NCH” or the “Company”) or their representatives or that was publicly available, and we have not assumed any responsibility for independent verification of any such information. We have also assumed and relied upon the reasonableness and accuracy of the financial projections, forecasts, and analyses provided to us, and assumed that such projections, forecasts and analyses were reasonable, prepared in good faith and on bases reflecting the best currently available judgments and estimates of NCH management. We express no opinion with respect to such projections, forecasts, or analyses or the assumptions upon which they are based.

Our analyses are necessarily based on economic, regulatory, market, financial and other conditions as they exist on, and on the information made available to us as of, the date hereof. It should be understood that subsequent developments may affect the information contained in the enclosed materials, and DrKW has no obligation to update or revise such materials.

It is understood that the enclosed materials have been prepared by DrKW solely for the benefit and use of the Special Committee of the Board of Directors of the Company and may not be relied upon by any other person. The enclosed materials may not be quoted, referred to, reproduced at any time, or used in any manner for any other purpose or delivered to any other person without the prior written consent of DrKW.

Situation Overview
DRAFT

Table of Contents

A.	Situation Overview
B.	Overview of Levy Group Proposal
C.	Selected Financial Information
D.	Valuation Summary
E.	Appendix
	1.          Discounted Cash Flow Analysis
	2.          Comparable Companies Analysis
	3.          Comparable Acquisitions Analysis
	4.          Leveraged Buyout Analysis
	5.          Premiums Analysis
	6.          Financial Projections
	7.          Stock Price Performance

DRAFT

Situation Overview

-1-

Situation Overview
DRAFT

Levy Group Proposal

• On October 1, 2001, NCH Corporation (“NCH” or the “Company”) announced that on September 28, certain members of the Levy family (the “Levy Group”) had proposed to acquire the outstanding shares of NCH that the Levy Group did not already own for $47.50 per share in cash (the “Proposal”)

• The Proposal represents a 21.2% premium to the September 28 closing price of NCH’s common stock

• The Levy Group currently owns approximately 57.3% of the 5.3MM outstanding common shares of NCH

• In its letter to the Company’s Board of Directors dated September 28, the Levy Group indicated that members of the Levy family had no interest in selling their common stock in NCH other than approximately 229,000 shares that may be sold by certain family members

- Lester Levy Sr. and Irvin Levy have indicated that, for liquidity purposes, they each may sell approximately 100,000 shares (approximately 7% of their respective holdings), as well as 29,000 shares held in a Levy family trust, either in the tender offer contemplated by the Proposal or in the open market after a transaction is announced

• We also have been advised that Milton Levy and his family (who are not part of the Levy Group) may sell all of their approximate 15,000 to 20,000 NCH shares in the tender offer or in the open market after announcement

-2-

Situation Overview
DRAFT

Transaction Timeline

• On October 8, 2001, DrKW was retained by the Special Committee of the Board of Directors (the “Special Committee”) to advise it with respect to the Proposal

• DrKW received a package of various documents from advisors to the Levy Group, including financial projections prepared by NCH in April and July 2001

• Upon receipt of this package, DrKW commenced its due diligence

• On October 22, 2001, DrKW and Sullivan & Cromwell (“S&C”), counsel to the Special Committee, met with NCH management as well as representatives of Deutsche Banc Alex. Brown (“Deutsche Bank”) and Debevoise & Plimpton (“Debevoise”) to discuss NCH’s operations, business plan and future prospects

• At that meeting, DrKW received a third set of projections prepared by NCH in mid-September 2001

• On October 24, 2001, DrKW received additional materials from NCH management, including annual budgets for some or all of the Company’s business segments, which were prepared at the end of the last two fiscal years

• On October 24 and 26, 2001, DrKW received certain reports prepared by Bain & Company (“Bain”) for NCH, including a September 1998 project proposal, a December 1998 Plumbmaster strategy report, a March 1999 Chemical Specialties strategy report and an August 2001 Partsmaster strategy report

• On October 26, 2001, DrKW and S&C participated in conference calls with representatives of the Company and the Levy Group about various due diligence matters, including the terms and status of the Levy Group’s proposed financing of the Proposal

-3-

Situation Overview
DRAFT

Transaction Timeline(Cont’d)

• Also on October 26, 2001, DrKW and S&C participated in a conference call with Irvin Levy, Deustche Bank and Debevoise to discuss the Proposal and related matters, in which Mr. Levy made the following points, among others

• Although they had been approached from time to time by other firms about a possible recapitalization, neither the Company nor the Levy Group had hired any firm to evaluate this or any alternative transaction until the Levy Group engaged Debevoise and Deutsche Bank in January and March 2001, respectively, to begin evaluating a possible going private transaction

• Neither NCH nor the Levy Group has ever had any approaches by or discussions with third parties regarding a possible sale of NCH or any of its continuing operations

• The Levy Group has made no commitments and has no plans for NCH to make divestitures or acquisitions after consummation of the Proposal

• On October 31, 2001, DrKW, the Special Committee and S&C met to discuss the Proposal

• After the meeting, DrKW, acting as a representative of the Special Committee, contacted the Levy Group’s advisors to propose that the Levy Group increase its offer for the minority stake to $57.00 per share

• On November 8, DrKW and S&C participated in a conference call with representatives from Bain regarding the firm’s previous work for NCH

• In general, the Bain representative said that Bain had consulted regarding various issues facing the Company but did not identify any “quick fixes"

• The Bain representative emphasized that the deterioration in NCH’s European results in recent years was one of the Company’s most important problems

-4-

Situation Overview
DRAFT

Transaction Timeline(Cont’d)

• On November 8 and November 12, DrKW and S&C participated in conference calls with representatives from Bank of America (“BofA”) to discuss various aspects of the proposed financing, including the proposed sources and uses of funds and the results of the bank’s due diligence efforts

• By letter dated November 8, BofA extended its due diligence deadline to December 10 with regard to two outstanding items:

- Customer interviews

- Phase 1 environmental reports

• Despite this extension, BofA indicated that the due diligence process was proceeding smoothly and no serious issues had been found

• On November 28, NCH provided DrKW with preliminary financials for the quarter and six months ended October 31

• The Company’s second quarter results appear to reflect continuing declining financial performance

- We are awaiting information from the Company to enable us to make comparisons with prior quarters which include some discontinued operations

• After giving effect to the preliminary October 31 financials, the Company’s LTM results decrease significantly, with LTM EBITDA falling by approximately $5.4MM

-5-

Situation Overview
DRAFT

Transaction Timeline(Cont’d)

• On November 29, representatives of DrKW and Deutsche Bank met to discuss their respective valuation methodologies as well as the Company’s recent results

• A copy of the materials provided by Deutsche Bank is being separately provided to the Special Committee

• Throughout the meeting, Deutsche Bank’s representatives emphasized that the Company’s declining LTM performance effectively caused the Levy Group’s initial offer to represent a higher multiple of the Company’s recent results

- LTM EBITDA as of October 31 fell to $42.1MM from $47.5MM as of July 31

• Certain differences between Deutsche Bank’s and DrKW’s valuation methodologies were identified

• In its comparable company trading analysis, Deutsche Bank used a smaller universe of companies than DrKW. Deutsche Bank’s universe has a median LTM EBITDA multiple of 7.0x, compared with DrKW’s of 7.3x

- This assumes that Deutsche Bank gives equal weight to each of the companies in its comparable universe, which its representatives indicated was not the case

• In its comparable transactions analysis, Deutsche Bank has a median LTM EBITDA multiple of 8.1x and a median LTM revenue multiple of 0.6x, versus DrKW’s calculations of 7.0x and 0.4x, respectively

- Again, this assumes that Deutsche Bank gives equal weight to each of the transactions in the analysis

-6-

Situation Overview
DRAFT

Transaction Timeline(Cont’d)

• In its discounted cash flow analysis, Deutsche Bank representatives indicated that they used higher discount rates (they mentioned a range from 11-15%) than those used by DrKW

- An analysis of Deutsche Bank’s comparable companies suggests that Deutsche Bank applied some judgment to its range of discount rates, as the weighted average cost of capital for its comparables ranges from approximately 10-11%

-7-

DRAFT

Overview of Levy Group Proposal

-8-

Overview of Levy Group Proposal
DRAFT

Overview of Levy Group Proposal($MM, except per share data)

• The Levy Group’s offer represents the following multiples:

Implied Market Capitalization

Offer Price	$	47.50
Total Shares Outstanding (MM)		5.3
Plus: Option Value		0.0
Equity Market Value	$	253.0
Plus: Net Debt		37.1
Adjusted Market Value	$	290.1

Share Price Premium Comparison

										52-Week
	1-Day			1-Week			4-Week			High			Low
Share Price Prior to 10/1/01(1)	$	39.19		$	39.30		$	44.00		$	56.28		$	35.25
Offer Premium		21.2	%		20.9	%		8.0	%		(15.6	%)		34.8	%

NCH Acquisition Multiples Implied by $47.50 Per Share Price

Adjusted Market Value

Equity Market Value

Amounts

as a Multiple of

as a Multiple of

Sales

EBITDA

EBIT

Net Income

Book Value

Sales

EBITDA

EBIT

Net Income

Book Value

LTM as of 10/31/01

$

652.8

$

42.1

$

30.1

$

19.9

$

230.7

0.4x

6.9x

9.6x

12.7x

1.1x

Fiscal Year ’02(2)

625.8

43.5

29.5

19.7

235.0

0.5x

6.7x

9.8x

12.8x

1.1x

(1)	The Levy Proposal was publicly announced on 10/01/01.
(2)	Source: September NCH management projections.

-9-

Overview of Levy Group Proposal
DRAFT

Multiple Sensitivity Analysis($MM, except per share data)

Price Per Share	$	47.50		$	48.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
Premium to 9/28/01		21.2	%		22.5	%		27.6	%		32.7	%		37.8	%		42.9	%		48.0	%		53.1	%
Fully-Diluted Shares		5.3			5.3			5.3			5.3			5.3			5.3			5.3			5.3
Equity Market Value	$	253.0		$	255.7		$	266.4		$	277.0		$	287.7		$	298.3		$	309.0		$	319.6
Plus Net Debt as of 10/31/01		37.1			37.1			37.1			37.1			37.1			37.1			37.1			37.1
Adjusted Market Value	$	290.1		$	292.8		$	303.5		$	314.1		$	324.8		$	335.4		$	346.1		$	356.7

Sales
	FY 2001	$649.6	0.4x	0.5x	0.5x	0.5x	0.5x	0.5x	0.5x	0.5x
	LTM	652.8	0.4x	0.4x	0.5x	0.5x	0.5x	0.5x	0.5x	0.5x
	FY 2002E	625.8	0.5x	0.5x	0.5x	0.5x	0.5x	0.5x	0.6x	0.6x
EBITDA
	FY 2001	$51.9	5.6x	5.6x	5.8x	6.1x	6.3x	6.5x	6.7x	6.9x
	LTM	42.1	6.9x	7.0x	7.2x	7.5x	7.7x	8.0x	8.2x	8.5x
	FY 2002E	43.5	6.7x	6.7x	7.0x	7.2x	7.5x	7.7x	8.0x	8.2x
EPS
	FY 2001	$3.75	12.7x	12.8x	13.3x	13.9x	14.4x	14.9x	15.4x	16.0x
	LTM	3.73	12.7x	12.9x	13.4x	13.9x	14.5x	15.0x	15.5x	16.1x
	FY 2002E	3.70	12.8x	13.0x	13.5x	14.1x	14.6x	15.1x	15.7x	16.2x

-10-

Overview of Levy Group Proposal
DRAFT

Merger Agreement Financial Points

• The current draft merger agreement (the “Merger Agreement”) proposed by the Levy Group provides for a two-step acquisition:

• An initial tender offer to purchase shares at $47.50 in cash, followed by

• A short-form merger at the same price

• Principal conditions include:

• Tender of a minimum number of shares that, when added to the Levy Group’s shares, will equal at least 90% of the outstanding shares

- Requires non-Levy Group stockholders to tender approximately 77% of their shares to produce the additional percentage of outstanding shares needed (approximately 33%)

• Accordingly, this condition imposes a “super-majority of the minority” requirement on the deal

- Whether this condition can be waived without the Special Committee’s consent is still an open point

• Financing for the tender offer and merger shall have been obtained on terms reasonably satisfactory to the Levy Group

- The Levy Group has provided a written financing commitment, subject to customary conditions, including a material adverse change condition

- It is important to note that the presence of a financing condition, particularly during the present period of significant market uncertainty, injects a meaningful degree of uncertainty into the Levy Proposal

• Other customary conditions, including any development with a material adverse effect on the Company and market outs

-11-

Overview of Levy Group Proposal
DRAFT

Financing Commitment Summary

• The Levy Group has provided DrKW with a commitment letter from Bank of America for a new senior credit facility to finance the Proposal and to provide working capital, with the following principal terms

•	Total Amount:	$130 million, subject to reduction if BofA is unable to successfully syndicate the facility, but to not less than the amount required to consummate the Proposal; subject to foregoing, BofA will commit to lend the full amount of the facility
•	Credit Facilities:	Five-year $80 million revolving credit facility and five-year amortizing $50 million term loan facility
•	Security:	All capital stock of borrower and domestic subsidiaries; 65% of stock of foreign subsidiaries; all present and future accounts receivable and inventory; guarantees by all existing and future domestic subsidiaries
•	Conditions:	Maximum Leverage Ratio (funded debt/EBITDA) of 2.25x at closing; other customary conditions, including satisfactory due diligence and documentation, absence of material changes, etc.
•	Financial Covenants:	Maintenance of LTM Maximum Leverage Ratio of 2.75x, with future step-downs to be agreed; Minimum Fixed Charge Coverage Ratio (unspecified); Minimum Asset Coverage Ratio (unspecified)

-12-

Overview of Levy Group Proposal
DRAFT

Debt Capacity Analysis

• The Levy Group has indicated that it plans to use approximately $80MM of borrowings under the new senior credit facility (the “New Credit Facility”) and $50MM of NCH cash and equivalents to complete the transaction

• Management has indicated that the balance of the cash remaining on the Company’s balance sheet ($28MM) is needed for working capital for the Company’s international subsidiaries

• The Company also has indicated that it plans to reserve approximately $20MM of availability under the New Credit Facility to fund potential liabilities at an NCH Superfund site in New Jersey, and as much as $10MM of availability to fund potential deferred compensation expense

• Accordingly, the Company would have a balance of approximately $22MM of working capital availability under the New Credit Facility

• Assuming $78MM of borrowings under the New Credit Facility are utilized to fund the Proposal, the Company would have a pro forma funded debt-to-EBITDA ratio of approximately 1.9x, below the maximum of 2.25x allowed at closing

Sources ($MM)

NCH Cash	$	50.0
New Credit Facility		78.0
Total Sources	$	128.0

Uses ($MM)

Public Shares Purchased ($47.50)	$	109.3
Levy Group Shrs. Purchased ($47.50)		10.9
Options & Stock Participation Plan		0.4
Dividends Payable		1.9
Approximate Fees And Expenses		5.6
Total Uses	$	128.0

-13-

Overview of Levy Group Proposal
DRAFT

Debt Capacity Analysis($MM) (Cont’d)

• The Company likely could comply with the facility’s leverage covenants at a range of higher purchase prices

Purchase Price per Share		$	47.50	$	48.00	$	50.00	$	52.00	$	54.00	$	56.00	$	58.00	$	60.00
Uses:
	Public Shares Acquired	$	109.3	$	110.4	$	115.0	$	119.6	$	124.2	$	128.8	$	133.4	$	138.0
	Levy Group Shares Acquired		10.9		11.0		11.5		11.9		12.4		12.8		13.3		13.7
	Options Cashed Out		0.4		0.4		0.5		0.5		0.5		0.5		0.5		0.5
	Dividends Payable		1.9		1.9		1.9		1.9		1.9		1.9		1.9		1.9
	Fees and Expenses		5.6		5.6		5.8		5.8		5.8		5.8		5.8		5.8
Total		$	128.0	$	129.3	$	134.5	$	139.6	$	144.6	$	149.7	$	154.8	$	159.8
Financing Sources:
	Cash	$	50.0	$	50.0	$	50.0	$	50.0	$	50.0	$	50.0	$	50.0	$	50.0
	Debt		78.0		79.3		84.5		89.6		94.6		99.7		104.8		109.8
Total		$	128.0	$	129.3	$	134.5	$	139.6	$	144.6	$	149.7	$	154.8	$	159.8
Pro Forma Debt / LTM EBITDA(1)			1.85x		1.88x		2.01x		2.13x		2.25x		2.37x		2.49x		2.61x
As Adjusted Debt / LTM EBITDA(1)(2)			2.57x		2.60x		2.72x		2.84x		2.96x		3.08x		3.20x		3.32x
Fixed Charge Coverage Ratio			1.4x		1.4x		1.3x		1.3x		1.3x		1.3x		1.2x		1.2x

(1)	Based on LTM EBITDA of $42.1MM. Assumes $28MM of cash not available to fund transaction or pay down debt.
(2)	Assumes $20MM and $10MM of availability under the New Credit facility used to fund environmental liabilities and deferred compensation obligations, respectively.

-14-

Overview of Levy Group Proposal
DRAFT

Significant Transaction Issues

• Stock Price Performance Issues

• The Levy Group’s $47.50 offer is 1.2% below the Company’s pre-offer 6-month average trading price of $48.08 and 15.6% below its 52-week high of $56.28

• The Company’s stock price fell significantly in June shortly before and after it was removed from the S&P Midcap 400 Index

• NCH stock price also has suffered due to the following factors:

- Overhang due to the Levy family’s ownership stake

- Small public float (2.2MM shares)

- Low trading volume (10,000 shares a day)

- No current equity coverage

- Inability of equity funds to buy stock due to lack of float

-15-

Overview of Levy Group Proposal
DRAFT

Significant Transaction Issues(Cont’d)

• Financial Performance Issues

• NCH’s financial performance has deteriorated in recent years

- Both current EBITDA and operating income margins are lower than the Company’s five year averages

- Results for the most recent quarter (ended October 31) appear to continue this negative trend

- A key question is whether the Company’s financial performance is susceptible to continued deterioration, or if it is likely to improve in the reasonably near future

• Going forward, little near-term opportunity for meaningful stock price appreciation appears to exist outside of an offer from the Levy Group

- Management projects declining financial results in fiscal year 2002 over the previous year

• The long-term viability of the Company’s direct sales model is questionable

- The Company faces increasing pressure from consolidating suppliers, customers and competitors

• Revenue at NCH’s Plumbing Products and Retail Products Groups is heavily tied to a small number of retailers

- Plumbing Products Group has invested heavily to maintain shelf space with its major customers

- Retail Products Group generates nearly 80% of revenue from five customers

• The Company’s Landmark Direct division is projected to operate at break-even for fiscal year 2002

-16-

Overview of Levy Group Proposal
DRAFT

Significant Transaction Issues(Cont’d)

• Negotiation Issues

• Any alternative buyer would not be able to execute a transaction without the support of the Levy Group

• The Company’s stock price would likely fall if the offer were rescinded

• The Levy Proposal does provide liquidity for minority shareholders, which would be difficult to achieve in the public markets

• The Proposal would eliminate any downside in the stock price, as well as any upside opportunity

-17-

DRAFT

Selected Financial
Information

-18-

Selected Financial Information

DRAFT

Financial Summary($MM)⁽¹⁾

		Historical
Summary Financials		1999			2000			2001			LTM(2)
Sales		$	674.5		$	674.3		$	649.6		$	652.8
	Growth					0.0	%		-3.7	%
Gross Profit			291.6			291.5			283.9			271.1
	Gross Margin		43.2	%		43.2	%		43.7	%		41.5	%
SG&A			(244.7	)		(244.6	)		(232.0	)		(229.0	)
	SG&A/Sales		36.3	%		36.3	%		35.7	%		35.1	%
EBITDA			46.9			46.9			51.9			42.1
	Margin		7.0	%		7.0	%		8.0	%		6.4	%
EBIT			33.1			33.0			39.8			30.1
	Operating Margin		4.9	%		4.9	%		6.1	%		4.6	%
Net Interest Expense			0.0			0.0			(3.0	)		(1.8	)
Taxes			(12.1	)		(12.0	)		(16.8	)		(8.4	)
	Tax Rate		36.5	%		36.5	%		45.7	%		29.6	%
Net Income			21.0			21.0			20.0			19.9
Capital Expenditures			(12.7	)		(8.8	)		(10.5	)		NA
	CapEx/Sales		1.9	%		1.3	%		1.6	%		NA
Free Cash Flow			22.1			26.0			21.6			NA
	Margin		3.3	%		3.9	%		3.3	%		NA

Balance Sheet Information, 10/31/01	Amount		%
Cash & Equivalents		78.8
Short-Term Debt		1.3		0.4	%
Long-Term Debt		0.0
Retirement & Deferred Compensation		114.6		33.1	%
Preferred Stock		0.0		0.0	%
Shareholders’ Equity		230.7		66.6	%
Total Capitalization		346.6		100.0	%

Market Capitalization
		$	46.75
FD Shares Outstanding (MM)	x		5.327
Equity Market Value		$	249.0
Preferred Stock			0.0
Net Debt	+		37.1
Adjusted Market Value		$	286.1

Adjusted Market Value as a Multiple of:
	FY2001			LTM
Sales		0.4	x		0.4	x
EBITDA		5.5	x		6.8	x
EBIT		7.2	x		9.5	x
FCF		13.3	x	NA
Equity Market Value as a Multiple of:
Net Income		12.5	x		12.5	x
Book Value		1.1	x

(1)	1999 and 2000 figures include discontinued operations.
(2)	Through 10/31/01.

-19-

Selected Financial Information

DRAFT

LTM Trend Results($MM, except per share)⁽¹⁾

• The Company’s LTM results have declined over the past three quarters, as the Company’s superior FY 2001 results are replaced with FY 2002 performance

• Preliminary second quarter financials indicate that operating income is down approximately $0.5MM over the first quarter, and revenue is up $0.1MM

		Latest Twelve Months Results as of:
		4/30/01		7/31/01			10/31/01
Revenue		$	649.6	$	646.5		$	652.8
EBITDA			51.9		47.5			42.1
EBIT			39.8		35.6			30.1
Net Income			22.9		21.0			19.9
Earnings per Share		$	4.29	$	3.93			3.73
Levy Group Offer as a Multiple of:
	Revenue		0.4x		0.4x	��		0.4x
	EBITDA		5.6x		6.1x			6.9x
	EBIT		7.3x		8.2x			9.6x
	Net Income		11.1x		12.1x			12.7x

⁽¹⁾ Includes results from continuing operations only.

-20-

Selected Financial Information

DRAFT

Performance vs. Projections($MM, except per share)

• The Company’s performance in the past six months puts it in position to meet or exceed the projections created in both July and September

					Fiscal Year 2002 Projections
	6 Months		Latest 6 Months
	10/31/01		Annualized		September		July		April
Revenue	$	338.1	$	676.3	$	625.8	$	642.1	$	650.7
EBITDA		22.8		45.6		43.6		46.0		55.7
EBIT		16.9		33.8		29.5		31.9		41.7
Net Income		12.0		24.0		18.8		22.1		29.5

-21-

Selected Financial Information

DRAFT

Five Year Historical Performance($MM)

• As restated to exclude discontinued operations, FY2001 sales, operating income, EBITDA and net income all were below the Company’s five year averages

• However, results for all years besides 2001 include discontinued operations, so comparisons between years may not be meaningful

• Operating income, EBITDA and their respective margins increased over the prior year for the first time in several years in FY2001, although they remain below the levels achieved in 1997 — 1999

		2001			2001															Five Year
		Reported(1)			Restated			2000(1)			1999(1)			1998(2)			1997(3)			Average
Net Sales		$	679.7		$	649.6		$	726.0		$	725.4		$	715.5		$	766.8		$	716.6
Operating Income			40.9			39.8			34.4			45.4			50.6			56.3			45.3
	Margin		6.0	%		6.1	%		4.7	%		6.3	%		7.1	%		7.3	%		6.3	%
EBITDA			53.0			51.9			48.2			59.2			65.3			71.3			59.2
	Margin		7.8	%		8.0	%		6.6	%		8.2	%		9.1	%		9.3	%		8.2	%
Net Income			30.1			20.0			18.4			22.4			35.1			34.7			26.1

(1)	2001 Reported, 2000 and 1999 figures include results from the following discontinued operations: N-E Thing Supply, Westmont/Friendly, 360 Markets and Landmark Discontinued Lines.
(2)	1998 figures include results from the following discontinued operations: N-E Thing Supply, Westmont/Friendly, 360 Markets, Landmark Discontinued Lines and DBS Services Group.
(3)	1997 figures include results from the following discontinued operations: N-E Thing Supply, Westmont/Friendly, 360 Markets, Landmark Discontinued Lines, DBS Services Group and Resource Electronics.

-22-

Selected Financial Information

DRAFT

Financial Summary($MM, except per share data)

• The following is based on management projections as of mid-September

		Historical												Projected
		1999			2000			2001			LTM			2002			2003			2004			2005			2006
Sales		$	674.5		$	674.3		$	649.6		$	652.8		$	625.8		$	647.3		$	669.6		$	697.4		$	727.1
	Growth					(0.0	%)		(3.7	%)					(3.7	%)		3.4	%		3.4	%		4.2	%		4.3	%
Gross Profit			291.6			291.5			283.9			271.1			270.5			282.2			293.6			308.7			323.4
	Gross Margin		43.2	%		43.2	%		43.7	%		41.5	%		43.2	%		43.6	%		43.8	%		44.3	%		44.5	%
SG&A			(244.7	)		(244.6	)		(232.0	)		(229.0	)		(227.0	)		(233.3	)		(240.3	)		(249.1	)		(259.6	)
	SG&A/Sales		36.3	%		36.3	%		35.7	%		35.1	%		36.3	%		36.0	%		35.9	%		35.7	%		35.7	%
EBITDA			46.9			46.9			51.9			42.1			43.5			48.9			53.3			59.6			63.8
	Margin		7.0	%		7.0	%		8.0	%		6.4	%		7.0	%		7.6	%		8.0	%		8.5	%		8.8	%
EBIT			33.1			33.0			39.8			30.1			29.5			34.0			37.4			42.8			45.9
	Operating Margin		4.9	%		4.9	%		6.1	%		4.6	%		4.7	%		5.2	%		5.6	%		6.1	%		6.3	%
Net Interest Expense			0.0			0.0			(3.0	)		(1.8	)		(0.5	)		0.0			0.0			0.0			0.0
Taxes			(12.1	)		(12.0	)		(16.8	)		(8.4	)		(12.1	)		(14.1	)		(15.6	)		(17.8	)		(19.2	)
	Tax Rate		36.5	%		36.5	%		45.7	%		29.6	%		38.0	%		38.0	%		38.0	%		38.0	%		38.0	%
Net Income			21.0			21.0			20.0			19.9			19.7			23.0			25.4			29.0			31.4
	EPS	$	3.89		$	3.92		$	3.77		$	3.73		$	3.71		$	4.31		$	4.76		$	5.44		$	5.88

-23-

Selected Financial Information

DRAFT

Projection Comparison — Consolidated($MM)

(FY Ended April 30)																				CAGR
		2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
	April 2001	$	649.6		$	650.7		$	673.2		$	701.6		$	725.2		$	751.4			3.0	%
	July 2001		—			642.1			647.2			669.6			697.4			727.0			2.3	%
	September 2001		—			625.8			647.3			669.6			697.4			727.1			2.3	%
Change
	July 2001				$	(8.6	)	$	(26.0	)	$	(32.0	)	$	(27.8	)	$	(24.4	)
	September 2001					(16.3	)		0.1			—			—			0.1
Operating Income
	April 2001	$	39.8		$	41.7		$	43.6		$	46.4		$	48.4		$	50.7			6.2	%
	July 2001		—			31.9			36.3			40.7			44.7			48.3			5.0	%
	September 2001		—			29.5			34.8			39.2			44.8			48.4			5.0	%
Change
	July 2001				$	(9.8	)	$	(7.3	)	$	(5.7	)	$	(3.7	)	$	(2.4	)
	September 2001					(2.4	)		(1.5	)		(1.5	)		0.1			0.1
Operating Margin
	April 2001		6.1	%		6.4	%		6.5	%		6.6	%		6.7	%		6.7	%
	July 2001		—			5.0	%		5.6	%		6.1	%		6.4	%		6.6	%
	September 2001		—			4.7	%		5.4	%		5.9	%		6.4	%		6.7	%

-24-

DRAFT

Valuation Summary

-25-

Valuation Summary

DRAFT

Preliminary Summary Valuation

(1)	Offer price indicated in the Proposal.
(2)	Includes control premium based on medium premium paid since 1/1/97 for close-outs of minority stakes by acquirers with at least 50% ownership prior to bid.
(3)	Based on multiples paid in third-party change of control transactions.
(4)	Reflects the median premiums paid since 1/1/97 for close-outs of minority stakes by acquirers with at least 50% ownership prior to bid.

-26-

Valuation Summary

DRAFT

Preliminary Summary Valuation($MM, except per share data)

							Enterprise Value
							as a Multiple of FY 01
	Enterprise		Equity		Share
Methods and Assumptions	Value Range		Value Range		Price Range		Sales		EBITDA
Discounted Cash Flow Analysis-		$323.7 - $403.4		$286.6 - $366.3		$54.00 - $69.00		0.5x - 0.6x		6.2x - 7.8x
April 2001 Projections
Discounted Cash Flow Analysis-		$307.8 - $382.1		$270.7 - $345.0		$51.00 - $65.00		0.5x - 0.6x		5.9x - 7.4x
July 2001 Projections
Discounted Cash Flow Analysis-		$302.5 - $376.8		$265.4 - $339.7		$50.00 - $64.00		0.5x - 0.6x		5.8x - 7.3x
September 2001 Projections
Comparable Companies Trading		$276.0 - $355.6		$238.9 - $318.5		$45.00 - $60.00		0.4x - 0.5x		5.3x - 6.9x
Analysis (w/ Premium)(1)
Comparable Acquisitions		$254.7 - $334.4		$217.6 - $297.2		$41.00 - $56.00		0.4x - 0.5x		4.9x - 6.4x
Analysis(2)
Premiums Analysis(3)		$291.9 - $345.0		$254.8 - $307.9		$48.00 - $58.00		0.4x - 0.5x		5.6x - 6.6x
52-Week Trading Range		$224.2 - $335.8		$187.1 - $298.7		$35.25 - $56.28		0.3x - 0.5x		4.3x - 6.5x
Current Trading Price		$287.4		$250.3		$47.15		0.4x		5.5x

(1)	Range includes 21.5% control premium based on median premium paid since 1/1/97 for close-outs of minority stakes by acquirers with at least 50% ownership prior to bid.
(2)	Based on multiples paid in third-party change of control transactions.
(3)	Reflects the median premiums paid since 1/1/97 for close-outs of minority stakes by acquirers with at least 50% ownership prior to bid.

-27-

DRAFT

Appendix

-28-

DRAFT

Discounted Cash Flow
Analysis

-29-

Discounted Cash Flow Analysis

DRAFT

Consolidated DCF Analysis — April Projections

		EBITDA Exit Multiple (2006 Exit)
Discount
Rate		5.5x			6.0x			6.5x			7.0x
	PV of Cash Flow Stream	$	87		$	87		$	87		$	87
	PV of Perpetuity		246			269			291			314
9.5%	Enterprise Value	$	334		$	356		$	379		$	401
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	297		$	319		$	342		$	364
	Implied Price Per Share	$	55.90		$	60.12		$	64.35		$	68.57
	Implied FCF Growth in Perpetuity		1.5	%		2.1	%		2.6	%		3.1	%
	Enterprise Value Multiple to FY '01A EBITDA		6.4x			6.9x			7.3x			7.7x
	Enterprise Value Multiple to FY '02E EBITDA		6.0x			6.4x			6.8x			7.2x
	PV of Cash Flow Stream	$	86		$	86		$	86		$	86
	PV of Perpetuity		242			264			286			308
10.0%	Enterprise Value	$	328		$	350		$	372		$	394
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	291		$	313		$	335		$	357
	Implied Price Per Share	$	54.81		$	58.95		$	63.09		$	67.23
	Implied FCF Growth in Perpetuity		1.9	%		2.6	%		3.1	%		3.6	%
	Enterprise Value Multiple to FY '01A EBITDA		6.3x			6.7x			7.2x			7.6x
	Enterprise Value Multiple to FY '02E EBITDA		5.9x			6.3x			6.7x			7.1x
	PV of Cash Flow Stream	$	85		$	85		$	85		$	85
	PV of Perpetuity		237			259			280			302
10.5%	Enterprise Value	$	322		$	344		$	365		$	387
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	285		$	307		$	328		$	350
	Implied Price Per Share	$	53.74		$	57.80		$	61.86		$	65.92
	Implied FCF Growth in Perpetuity		2.4	%		3.0	%		3.6	%		4.0	%
	Enterprise Value Multiple to FY '01A EBITDA		6.2x			6.6x			7.0x			7.5x
	Enterprise Value Multiple to FY '02E EBITDA		5.8x			6.2x			6.6x			6.9x

-30-

Discounted Cash Flow Analysis

DRAFT

Consolidated DCF Analysis — July Projections

		EBITDA Exit Multiple (2006 Exit)
Discount
Rate		5.5x			6.0x			6.5x			7.0x
	PV of Cash Flow Stream	$	80		$	80		$	80		$	80
	PV of Perpetuity		238			259			281			303
9.5%	Enterprise Value	$	318		$	340		$	361		$	383
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	281		$	302		$	324		$	346
	Implied Price Per Share	$	52.91		$	56.98		$	61.05		$	65.13
	Implied FCF Growth in Perpetuity		1.9	%		2.5	%		3.0	%		3.5	%
	Enterprise Value Multiple to FY '01A EBITDA		6.1	x		6.5	x		7.0	x		7.4	x
	Enterprise Value Multiple to FY '02E EBITDA		6.9	x		7.4	x		7.9	x		8.3	x
	PV of Cash Flow Stream	$	79		$	79		$	79		$	79
	PV of Perpetuity		233			255			276			297
10.0%	Enterprise Value	$	312		$	334		$	355		$	376
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	275		$	296		$	318		$	339
	Implied Price Per Share	$	51.86		$	55.86		$	59.85		$	63.85
	Implied FCF Growth in Perpetuity		2.4	%		3.0	%		3.5	%		3.9	%
	Enterprise Value Multiple to FY '01A EBITDA		6.0	x		6.4	x		6.8	x		7.2	x
	Enterprise Value Multiple to FY '02E EBITDA		6.8	x		7.3	x		7.7	x		8.2	x
	PV of Cash Flow Stream	$	78		$	78		$	78		$	78
	PV of Perpetuity		229			250			270			291
10.5%	Enterprise Value	$	307		$	328		$	349		$	369
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	270		$	291		$	311		$	332
	Implied Price Per Share	$	50.84		$	54.76		$	58.68		$	62.60
	Implied FCF Growth in Perpetuity		2.9	%		3.4	%		4.0	%		4.4	%
	Enterprise Value Multiple to FY '01A EBITDA		5.9	x		6.3	x		6.7	x		7.1	x
	Enterprise Value Multiple to FY '02E EBITDA		6.7	x		7.1	x		7.6	x		8.0	x

-31-

Discounted Cash Flow Analysis

DRAFT

Consolidated DCF Analysis — September Projections

		EBITDA Exit Multiple (2006 Exit)
Discount
Rate		5.5x			6.0x			6.5x			7.0x
	PV of Cash Flow Stream	$	74		$	74		$	74		$	74
	PV of Perpetuity		239			260			282			304
9.5%	Enterprise Value	$	313		$	335		$	356		$	378
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	276		$	298		$	319		$	341
	Implied Price Per Share	$	51.96		$	56.05		$	60.14		$	64.22
	Implied FCF Growth in Perpetuity		2.0	%		2.5	%		3.0	%		3.5	%
	Enterprise Value Multiple to FY '01A EBITDA		6.0	x		6.4	x		6.9	x		7.3	x
	Enterprise Value Multiple to FY '02E EBITDA		7.2	x		7.7	x		8.2	x		8.7	x
	PV of Cash Flow Stream	$	73		$	73		$	73		$	73
	PV of Perpetuity		234			255			277			298
10.0%	Enterprise Value	$	307		$	329		$	350		$	371
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	270		$	292		$	313		$	334
	Implied Price Per Share	$	50.92		$	54.93		$	58.94		$	62.95
	Implied FCF Growth in Perpetuity		2.4	%		3.0	%		3.5	%		4.0	%
	Enterprise Value Multiple to FY '01A EBITDA		5.9	x		6.3	x		6.7	x		7.2	x
	Enterprise Value Multiple to FY '02E EBITDA		7.1	x		7.6	x		8.0	x		8.5	x
	PV of Cash Flow Stream	$	72		$	72		$	72		$	72
	PV of Perpetuity		230			250			271			292
10.5%	Enterprise Value	$	302		$	323		$	344		$	365
	Less: Net Debt (10/31/00)		37			37			37			37
	Equity Value	$	265		$	286		$	307		$	328
	Implied Price Per Share	$	49.91		$	53.84		$	57.77		$	61.70
	Implied FCF Growth in Perpetuity		2.9	%		3.5	%		4.0	%		4.4	%
	Enterprise Value Multiple to FY '01A EBITDA		5.8	x		6.2	x		6.6	x		7.0	x
	Enterprise Value Multiple to FY '02E EBITDA		6.9	x		7.4	x		7.9	x		8.4	x

-32-

Discounted Cash Flow Analysis

DRAFT

WACC Analysis

Unlevered Betas
	Current		Debt/
	Levered		Total			Unlevered
	Beta(1)		Capital			Beta
Average Comparable Company Beta		0.59		41.7	%		0.43

Weighted Average Cost-of-Capital
Capital Structure				Cost of Equity					Cost of Debt
															Wtd-Avg
Debt/	Debt/			Relevered		Cost of			Before			After			Cost of
Capital	Equity			Beta(2)		Equity			Tax			Tax			Capital
0%		0	%		0.43		10.2	%		8.00	%		4.96	%		10.2	%
10%		11	%		0.46		10.6	%		8.30	%		5.15	%		10.0	%
20%		25	%		0.50		11.1	%		8.60	%		5.33	%		9.9	%
30%		43	%		0.55		11.7	%		8.90	%		5.52	%		9.8	%
40%		67	%		0.61		12.5	%		9.20	%		5.70	%		9.8	%
50%		100	%		0.70		13.6	%		9.50	%		5.89	%		9.8	%

Assumptions
Marginal Tax Rate	38.0	%	Risk Free Rate of Return(3)	4.71	%	Market Risk Premium(4)	12.70	%

(1)	Based on average comparable company betas. Source: BARRA.
(2)	Relevered Beta = Unlevered Beta * { 1 + (Debt * (1 — tax rate) / Equity) }.
(3)	Equals current yield on ten year U.S. Treasury Notes.
(4)	Source: Ibbotson Associates.

-33-

DRAFT

Comparable Companies
Analysis

-34-

Comparable Companies Analysis

DRAFT

Valuation Summary

			Relevant				Implied						Less:		Implied Equity
Relevant Measure			Multiple Range				Enterprise Value						Net Debt		Value per Share
LTM EBITDA	$	42.1		5.5x	—	7.0x		$	232	—	$	295	$	37.1	$	36.50	—	$	48.36
2001E EBITDA		43.9		5.0x	—	6.5x			220	—		285		37.1		34.24	—		46.60
2002E EBITDA		47.1		4.5x	—	6.0x			212	—		283		37.1		32.85	—		46.12
LTM EPS	$	3.73		11.5x	—	15.5x									$	42.92	—	$	57.85
2001E EPS		3.90		10.0x	—	13.5x										38.95	—		52.59
2002E EPS		4.11		9.0x	—	12.0x										37.00	—		49.33

Implied Compco Range(1)	$	37.00	—	$	49.00
Plus: Median Minority Closeout Premium (22%)(2)		8.00	—		11.00
Implied Valuation Range		45.00	—		60.00

(1)	Implied Compco range does not include change of control premium. Range based on median of each column rounded to the nearest dollar.
(2)	Reflects median premium paid since 1/1/97 for close-outs of minority stakes by acquirers with at least 50% ownership prior to bid.

-35-

Comparable Companies Analysis

DRAFT

Comparable Company Analysis

Enterprise Value/EBITDA

Price/EPS

Ent. Value/

Price

Market

Enterprise

7 Yr. Avg.

Name

12/3/01

Value

Value

LTM

CY01E

CY02E

LTM

CY01E

CY02E

LTM EBITDA

Chemicals Distribution

Hawkins

$

7.85

$

80.6

$

79.5

6.0x

6.3x

NA

11.6x

12.2x

NA

5.7x

Aceto

9.35

60.9

55.4

9.9x

NA

NA

NM

NA

NA

5.4x

JLM Industries

1.95

18.2

33.1

NA

NA

NA

NM

NM

NA

NA

Industrial Distribution

Hughes Supply

27.20

667.8

1,168.9

9.6x

9.1x

7.4x

15.6x

14.5x

12.5x

6.6x

Applied Ind. Technologies

18.50

373.1

459.0

6.3x

7.1x

6.1x

15.5x

15.9x

13.6x

6.5x

Crane Group(1)

4.22

209.7

336.9

6.9x

3.0x

4.8x

17.6x

8.5x

11.3x

NA

Kaman Corp.

14.14

322.9

311.0

9.7x

NA

NA

9.2x

10.0x

12.2x

6.8x

Lawson Products

26.89

262.8

279.2

7.7x

8.8x

NA

15.4x

18.6x

NA

5.8x

Huttig Building Products

5.40

106.0

188.5

4.9x

3.7x

NA

11.7x

11.7x

9.0x

NA

Noland

25.96

92.8

128.4

8.8x

10.1x

NA

15.5x

16.4x

NA

6.5x

Other Distribution

Acuity Brands

13.80

566.7

1,165.2

5.8x

NA

NA

11.0x

NA

NA

NA

SCP Pool Corp.

25.85

650.9

706.8

8.2x

11.8x

10.2x

19.0x

19.6x

16.9x

10.4x

Aviall

5.18

95.8

226.5

5.5x

5.4x

4.7x

8.4x

10.4x

11.5x

8.5x

Mean

7.4x

7.2x

6.7x

13.7x

13.8x

12.4x

6.9x

Median

7.3x

7.1x

6.1x

15.4x

13.4x

12.2x

6.5x

NCH Corporation(2)

$

46.75

$

249

$

286

6.8x

6.5x

6.1x

12.5x

12.0x

11.4x

6.2x

NCH Corporation(2)

$

39.19

$

209

$

246

5.8x

5.6x

5.2x

10.5x

10.1x

9.5x

Note:	Estimates taken from First Call and other research sources. Comparable companies selected were those with business models similar to that of the Company. However, a number of companies were excluded whose financial characteristics were substantially different from NCH.
(1)	2002 estimates refer to the fiscal year ending 6/30/02.
(2)	NCH multiples based on management estimates.

-36-

Comparable Companies Analysis

DRAFT

Comparable Company Analysis(Cont’d)

		LTM			Wkg Cap as						Net Debt as			52 Wk Avg.
		EBITDA			% of LTM			IBES Est.			% of Total			Daily Volume		Total Float		Float as % of
Name		Margin			Revenue			LTG Rate			Capital			('000s)		(MMs)		Total Shares
Chemicals Distribution
	Hawkins		12.7	%		23.2	%	NA			NM				5.9		7.3		71.0	%
	Aceto		1.8	%		23.1	%	NA			NM				7.6		5.9		90.0	%
	JLM Industries	NA				3.0	%		16.5	%		31.9	%		16.3		5.9		63.1	%
Industrial Distribution
	Hughes Supply		3.8	%		21.0	%		14.0	%		45.8	%		88.8		22.3		94.1	%
	Applied Ind. Technologies		4.6	%		17.3	%		7.5	%		20.5	%		36.5		14.6		75.9	%
	Crane Group		6.4	%		18.0	%	NA				39.4	%		80.5		41.5		83.6	%
	Kaman Corp.		3.4	%		32.2	%		30.0	%	NM				7.1		20.8		92.6	%
	Lawson Products		9.8	%		29.3	%		5.0	%		8.9	%		53.2		5.0		51.6	%
	Huttig Building Products		4.0	%		9.6	%		11.0	%		48.8	%		26.7		12.4		63.1	%
	Noland		3.1	%		14.7	%	NA				19.9	%		1.0		0.5		13.1	%
Other Distribution
	Acuity Brands		10.2	%		5.9	%	NA				60.3	%	NA		NA		NA
	SCP Pool		10.4	%		15.3	%		20.0	%		25.4	%		184.5		24.4		97.9	%
	Aviall		8.0	%		34.4	%		29.5	%		39.2	%		94.8		18.2		98.4	%
Mean			6.5	%		19.0	%		16.7	%		34.0	%		50.2		14.9		74.5	%
Median			5.5	%		18.0	%		15.3	%		35.5	%		31.6		13.5		79.7	%
NCH Corporation			6.5	%		34.9	%	NA				10.7	%		8.0		2.3		42.2	%

-37-

DRAFT

Comparable Acquisitions
Analysis

-38-

Comparable Acquisitions Analysis

DRAFT

Valuation Summary

		Relevant				Implied					Less:		Implied Equity
Relevant Measure		Multiple Range				Enterprise Value					Net Debt		Value per Share
LTM Revenue	$652.8		0.3x	—	0.5x	$	196	—	$	326	$	37.1	$	29.91	—	$	54.50
LTM EBITDA	42.1		6.0x	—	8.0x		253	—		337		37.1		40.60	—		56.46
LTM EPS	3.73		14.0x	—	16.0x									52.25	—		59.71
Implied Valuation Range(1)													$	41.00	—	$	56.00

⁽¹⁾ Range based on median of each column rounded to the nearest dollar.

-39-

Comparable Acquisitions Analysis

DRAFT

Comparable Acquisitions Analysis($MM)

										Equity
		Purchase Price				Adjusted Purchase Price/				Purchase Price/
Date	Acquirer Name/
Ann'd.	Target Name	Adjusted		Equity		Sales		EBITDA		Net Income
4/02/01	Kohlberg Investors/	$	120.7	$	120.7		0.2x		4.0x	NM
	Katy Industries
1/22/01	SCP Pool Corp/		48.0	NA			0.4x	NA		NA
	Hughes Supply
1/22/01	Sysco/		223.1		184.9		0.6x		8.1x		16.6x
	Guest Supply
11/10/00	Vopak NV/		482.2		444.0		0.4x		6.0x		11.7x
	Ellis & Everard
9/5/00	Brenntag (Stinnes AG)/		401.6		245.3		0.4x		6.7x		10.6x
	Holland Chemical
8/01/00	Hagemeyer/		198.5		198.5		0.4x	NA		NA
	Pacific Dunlop-Electrical
7/21/00	Rexel/		725.0		668.7		0.4x		8.1x		13.7x
	Westburne
7/22/99	Mgmt.-led investor group/		185.4		185.4		0.6x		7.0x		17.5x
	White Cap Industries
5/07/99	Unidare/		60.1		54.9		0.7x		9.7x		18.0x
	Oklahoma Rig and Supply
				Mean			0.5x		7.1x		14.7x
				Median			0.4x		7.0x		15.1x

Note: All figures based on LTM or latest available data. Comparable transactions selected were those with target company business models similar to that of the Company. However, a number of companies were excluded whose financial characteristics were substantially different from NCH. Transactions over $1.0 billion excluded.

-40-

DRAFT

Leveraged Buyout Analysis

-41-

Leveraged Buyout Analysis

DRAFT

Assumptions — Levy Group Equity Not Rolled

Sources
	Amort. Pd		Rate			Amount		Percent
Cash on Balance Sheet				4.0	%	$	78.8		19	%
Amortizing Bank Debt		7.0		6.9	%		85.7		21	%
Revolver				7.5	%		52.5		13	%
Inherited Debt				0.0	%		115.9		28	%
High Yield Debt				10.0	%		0.0		0	%
Equity							75.6		19	%
Total						$	408.6		100	%
Initial Debt / Total Initial Book Capitalization							77%

Adjusted Purchase Price
Per Share Purchase Price		47.50
Shares Outstanding (MM) (10/31/01)		5.3
Equity Purchase Price	$	252.1
Plus: Net Debt @ 10/31/01		37.1
Adjusted Purchase Price	$	289.2
Shares Already Owned by Buyer		0.0
Adjusted Equity Purchase Price	$	252.1

Uses
	Amt.		%
W/C Cash	$	24.2		6	%
Inherited Debt		115.9		28	%
Cash Paid to Seller		252.1		62	%
Financing Transaction Costs		1.4		0	%
Other Transaction Costs		15.0		4	%
Rolled Equity		0.0		0	%
Total	$	408.6		100	%

Write-Up/Goodwill
Equity Purchase Price		252.1
Tangible Book Value		230.7
Original Deferred Taxes Eliminated		—
Tang. B.V. + Def. Taxes Eliminated		230.7
Excess of PP over BV + Def. Taxes Eliminated		21.4
Write-Up of PP&E Given	0.0% of Excess	—
New Deferred Taxes Created		—
Goodwill (Net of Original Goodwill)		21.4

-42-

Leveraged Buyout Analysis

DRAFT

IRR Analysis — Levy Group Equity Not Rolled — April Projections

		Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		(1.2	%)		(2.6	%)		(8.5	%)		(14.6	%)		(21.1	%)		(28.4	%)		(36.6	%)		(47.0	%)
Exit	2005		8.8	%		8.0	%		4.1	%		0.2	%		(3.8	%)		(8.0	%)		(12.6	%)		(17.5	%)
Year	2006		13.4	%		12.8	%		10.1	%		7.4	%		4.6	%		1.7	%		(1.2	%)		(4.3	%)

		Implied IRR at 6x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		10.9	%		9.7	%		4.6	%		(0.5	%)		(5.7	%)		(11.1	%)		(16.8	%)		(22.8	%)
Exit	2005		16.2	%		15.4	%		12.0	%		8.5	%		5.1	%		1.6	%		(2.0	%)		(5.8	%)
Year	2006		18.2	%		17.7	%		15.2	%		12.7	%		10.3	%		7.8	%		5.2	%		2.6	%

		Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		20.8	%		19.7	%		15.1	%		10.5	%		5.9	%		1.2	%		(3.5	%)		(8.3	%)
Exit	2005		22.3	%		21.6	%		18.4	%		15.3	%		12.2	%		9.0	%		5.9	%		2.7	%
Year	2006		22.4	%		21.9	%		19.5	%		17.3	%		15.0	%		12.7	%		10.4	%		8.1	%

		Implied IRR at 7x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		29.3	%		28.3	%		23.9	%		19.6	%		15.4	%		11.1	%		6.9	%		2.7	%
Exit	2005		27.6	%		26.9	%		24.0	%		21.0	%		18.1	%		15.2	%		12.3	%		9.5	%
Year	2006		26.1	%		25.5	%		23.3	%		21.2	%		19.0	%		16.9	%		14.8	%		12.7	%

-43-

Leveraged Buyout Analysis

DRAFT

IRR Analysis — Levy Group Equity Not Rolled — July Projections

		Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		(21.5	%)		(23.3	%)		(32.1	%)		(42.7	%)		(58.2	%)		(132.2	%)		(150.9	%)		(160.7	%)
Exit	2005		0.3	%		(0.8	%)		(5.3	%)		(10.1	%)		(15.3	%)		(21.1	%)		(28.0	%)		(36.9	%)
Year	2006		8.8	%		8.1	%		5.1	%		2.1	%		(1.1	%)		(4.4	%)		(8.0	%)		(12.0	%)

		Implied IRR at 6x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		(5.4	%)		(6.8	%)		(13.1	%)		(19.7	%)		(27.0	%)		(35.3	%)		(45.7	%)		(61.2	%)
Exit	2005		8.9	%		8.0	%		4.2	%		0.3	%		(3.8	%)		(8.0	%)		(12.5	%)		(17.5	%)
Year	2006		14.2	%		13.6	%		11.0	%		8.3	%		5.6	%		2.8	%		(0.1	%)		(3.1	%)

		Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		6.6	%		5.3	%		0.0	%		(5.4	%)		(11.0	%)		(16.9	%)		(23.2	%)		(30.2	%)
Exit	2005		15.8	%		15.0	%		11.6	%		8.1	%		4.7	%		1.1	%		(2.5	%)		(6.3	%)
Year	2006		18.8	%		18.2	%		15.8	%		13.4	%		10.9	%		8.5	%		6.0	%		3.4	%

		Implied IRR at 7x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		16.3	%		15.2	%		10.4	%		5.5	%		0.7	%		(4.2	%)		(9.3	%)		(14.6	%)
Exit	2005		21.7	%		20.9	%		17.7	%		14.6	%		11.4	%		8.3	%		5.1	%		1.8	%
Year	2006		22.8	%		22.2	%		19.9	%		17.6	%		15.4	%		13.1	%		10.9	%		8.6	%

-44-

Leveraged Buyout Analysis

DRAFT

IRR Analysis — Levy Group Equity Not Rolled — September Projections

		Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004			(41.3	%)		(44.4	%)		(63.9	%)		(140.7	%)		(155.7	%)		(164.6	%)		(171.1	%)		(176.2	%)
Exit	2005			(4.2	%)		(5.3	%)		(10.4	%)		(15.9	%)		(22.1	%)		(29.6	%)		(39.8	%)		(59.7	%)
Year	2006			6.2	%		5.5	%		2.3	%		(1.0	%)		(4.5	%)		(8.3	%)		(12.4	%)		(17.1	%)

		Implied IRR at 6x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		(17.8	%)		(19.6	%)		(27.5	%)		(36.8	%)		(48.8	%)		(70.6	%)		(142.2	%)		(155.3	%)
Exit	2005		5.4	%		4.5	%		0.4	%		(3.8	%)		(8.2	%)		(12.9	%)		(18.1	%)		(24.1	%)
Year	2006		12.1	%		11.5	%		8.7	%		5.9	%		3.0	%		0.1	%		(3.1	%)		(6.4	%)

		Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		(3.2	%)		(4.6	%)		(10.6	%)		(17.0	%)		(23.9	%)		(31.6	%)		(40.7	%)		(52.8	%)
Exit	2005		13.0	%		12.2	%		8.6	%		5.0	%		1.3	%		(2.5	%)		(6.4	%)		(10.6	%)
Year	2006		17.0	%		16.4	%		13.9	%		11.4	%		8.8	%		6.3	%		3.6	%		0.9	%

		Implied IRR at 7x Exit Multiple, 2006 Exit Year
Purchase Price		$47.50			$48.00			$50.00			$52.00			$54.00			$56.00			$58.00			$60.00
	2004		8.0	%		6.8	%		1.6	%		(3.8	%)		(9.2	%)		(14.9	%)		(21.0	%)		(27.6	%)
Exit	2005		19.3	%		18.5	%		15.2	%		12.0	%		8.7	%		5.4	%		2.1	%		(1.4	%)
Year	2006		21.2	%		20.6	%		18.3	%		16.0	%		13.6	%		11.3	%		9.0	%		6.6	%

-45-

Leveraged Buyout Analysis

DRAFT

Assumptions — Levy Group Equity Rolled

Sources
	Amort. Pd		Rate			Amount			Percent
Cash on Balance Sheet				4.0	%	$	78.8			19	%
Amortizing Bank Debt		7.0		6.9	%		50.0			12	%
Revolver				7.5	%		18.7			5	%
Inherited Debt				0.0	%		115.9			28	%
High Yield Debt				10.0	%		0.0			0	%
Equity							144.5			35	%
Total						$	407.9			100	%
Initial Debt / Total Initial Book Capitalization							60	%

Adjusted Purchase Price
Per Share Purchase Price	$	47.50
Shares Outstanding (MM) (10/31/01)		5.3
Equity Purchase Price	$	24.2
Plus: Net Debt @ 10/31/01		37.1
Adjusted Purchase Price	$	289.2
Shares Already Owned by Buyer		144.5
Adjusted Equity Purchase Price	$	107.7

Uses
	Amt.			%
W/C Cash		$	24.2		6	%
Inherited Debt		$	115.9		28	%
Cash Paid to Seller			107.7		26	%
Financing Transaction Costs			0.7		0	%
Other Transaction Costs			15.0		4	%
Rolled Equity			144.5		35	%
Total		$	407.9		100	%

Write-Up/Goodwill
Equity Purchase Price		107.7
Tangible Book Value		230.7
Original Deferred Taxes Eliminated		—
Tang. B.V. + Def. Taxes Eliminated		—
Excess of PP over BV + Def. Taxes Eliminated		—
Write-Up of PP&E Given	0.0% of Excess	—
New Deferred Taxes Created		—
Goodwill (Net of Original Goodwill)		—

-46-

Leveraged Buyout Analysis

DRAFT

IRR Analysis — Levy Group Equity Rolled — April Projections

		Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		1.8	%	1.1	%	(1.6	%)	(4.3	%)	(6.9	%)	(9.5	%)	(11.9	%)	(14.4	%)
Exit	2005		7.0	%	6.5	%	4.5	%	2.5	%	0.6	%	(1.3	%)	(3.1	%)	(4.9	%)
Year	2006		9.6	%	9.3	%	7.7	%	6.2	%	4.7	%	3.2	%	1.8	%	0.4	%

		Implied IRR at 6x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		8.1	%	7.5	%	4.8	%	2.2	%	(0.4	%)	(2.8	%)	(5.2	%)	(7.5	%)
Exit	2005		11.2	%	10.7	%	8.7	%	6.8	%	5.0	%	3.2	%	1.4	%	(0.3	%)
Year	2006		12.6	%	12.3	%	10.7	%	9.2	%	7.8	%	6.4	%	5.0	%	3.7	%

		Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		13.8	%	13.1	%	10.5	%	7.9	%	5.4	%	3.0	%	0.7	%	(1.6	%)
Exit	2005		15.0	%	14.5	%	12.5	%	10.7	%	8.9	%	7.1	%	5.4	%	3.7	%
Year	2006		15.3	%	15.0	%	13.5	%	12.0	%	10.6	%	9.2	%	7.9	%	6.6	%

		Implied IRR at 7x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		18.9	%	18.3	%	15.6	%	13.1	%	10.6	%	8.2	%	5.9	%	3.7	%
Exit	2005		18.4	%	17.9	%	16.0	%	14.2	%	12.4	%	10.6	%	8.9	%	7.3	%
Year	2006		17.8	%	17.4	%	16.0	%	14.5	%	13.1	%	11.8	%	10.5	%	9.2	%

-47-

Leveraged Buyout Analysis

DRAFT

IRR Analysis — Levy Group Equity Rolled — July Projections

		Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		(7.0	%)	(7.7	%)	(10.6	%)	(13.4	%)	(16.2	%)	(19.0	%)	(21.7	%)	(24.4	%)
Exit	2005		2.5	%	2.0	%	(0.1	%)	(2.1	%)	(4.1	%)	(6.1	%)	(8.0	%)	(10.0	%)
Year	2006		7.0	%	6.6	%	5.0	%	3.4	%	1.9	%	0.4	%	(1.1	%)	(2.6	%)

		Implied IRR at 6x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		(0.2	%)	(0.9	%)	(3.7	%)	(6.4	%)	(9.0	%)	(11.6	%)	(14.1	%)	(16.6	%)
Exit	2005		7.0	%	6.5	%	4.5	%	2.5	%	0.6	%	(1.3	%)	(3.1	%)	(4.9	%)
Year	2006		10.1	%	9.8	%	8.2	%	6.7	%	5.2	%	3.8	%	2.4	%	1.0	%

		Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		5.8	%	5.1	%	2.4	%	(0.2	%)	(2.8	%)	(5.3	%)	(7.7	%)	(10.1	%)
Exit	2005		11.0	%	10.5	%	8.5	%	6.6	%	4.7	%	2.9	%	1.2	%	(0.6	%)
Year	2006		13.0	%	12.6	%	11.1	%	9.6	%	8.2	%	6.8	%	5.4	%	4.1	%

		Implied IRR at 7x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		11.2	%	10.5	%	7.8	%	5.2	%	2.7	%	0.3	%	(2.0	%)	(4.3	%)
Exit	2005		14.6	%	14.1	%	12.1	%	10.3	%	8.4	%	6.7	%	5.0	%	3.3	%
Year	2006		15.6	%	15.2	%	13.7	%	12.2	%	10.8	%	9.5	%	8.1	%	6.8	%

-48-

Leveraged Buyout Analysis

DRAFT

IRR Analysis — Levy Group Equity Rolled — September Projections

		Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		(13.1	%)	(13.8	%)	(16.9	%)	(19.9	%)	(22.8	%)	(25.8	%)	(28.8	%)	(31.8	%)
Exit	2005		0.4	%	(0.1	%)	(2.2	%)	(4.3	%)	(6.4	%)	(8.4	%)	(10.4	%)	(12.4	%)
Year	2006		5.5	%	5.1	%	3.5	%	1.9	%	0.3	%	(1.2	%)	(2.7	%)	(4.2	%)

		Implied IRR at 6x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		(5.6	%)	(6.3	%)	(9.2	%)	(12.0	%)	(14.7	%)	(17.4	%)	(20.1	%)	(22.7	%)
Exit	2005		5.1	%	4.7	%	2.6	%	0.6	%	(1.3	%)	(3.3	%)	(5.1	%)	(7.0	%)
Year	2006		8.9	%	8.5	%	6.9	%	5.4	%	3.9	%	2.4	%	1.0	%	(0.4	%)

		Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		0.8	%	0.2	%	(2.6	%)	(5.3	%)	(7.9	%)	(10.5	%)	(13.0	%)	(15.4	%)
Exit	2005		9.3	%	8.9	%	6.9	%	4.9	%	3.0	%	1.2	%	(0.6	%)	(2.4	%)
Year	2006		11.9	%	11.5	%	9.9	%	8.4	%	7.0	%	5.6	%	4.2	%	2.8	%

		Implied IRR at 7x Exit Multiple, 2006 Exit Year
Purchase Price			$47.50		$48.00		$50.00		$52.00		$54.00		$56.00		$58.00		$60.00
	2004		6.5	%	5.9	%	3.2	%	0.5	%	(2.0	%)	(4.5	%)	(6.9	%)	(9.2	%)
Exit	2005		13.1	%	12.6	%	10.6	%	8.7	%	6.9	%	5.1	%	3.4	%	1.7	%
Year	2006		14.5	%	14.2	%	12.7	%	11.2	%	9.8	%	8.4	%	7.0	%	5.7	%

-49-

DRAFT

Premiums Analysis

- 50 -

DRAFT

Premiums Analysis

Premiums Analysis: Minority Closeouts

								% Stock Premium Before
						Equity		Announcement Date
Date			% Shares			Purchase
Announced	Target	Acquiror	Acquired			Price ($MM)		1 Day			1 Week			4 Weeks
Companies with Market Capitalizations greater than $1 Billion
02/22/00	Ixnet	Global Crossing Ltd.		27.6	%		2,694.0		18.1	%		22.8	%		25.9	%
06/20/97	Wheelabrator Technologies	Waste Management		34.6	%		2,671.5		26.9	%		28.2	%		30.7	%
03/21/00	Travelers Property Casualty	Citigroup		15.0	%		2,423.0		23.2	%		38.0	%		33.6	%
08/24/98	Tele-Commun Intl.	Liberty Media		18.9	%		2,165.7		-1.1	%		-4.5	%		-9.9	%
03/14/00	Howmet International	Alcoa		18.9	%		2,126.4		13.5	%		12.8	%		14.3	%
03/27/98	International Specialty Prods.	ISP Holdings		20.1	%		1,789.6		4.3	%		1.7	%		14.5	%
02/25/97	Fina	Petrofina SA		14.7	%		1,754.0		19.7	%		18.5	%		21.5	%
11/12/99	Howmet International Inc.	Cordant Technologies		15.4	%		1,700.5		20.9	%		18.8	%		38.1	%
07/09/00	Life Technologies	Invitrogen Corp.		27.9	%		1,525.9		22.5	%		22.5	%		20.0	%
05/07/99	J Ray McDermott SA	McDermott International		37.0	%		1,391.3		16.8	%		13.1	%		19.3	%
05/23/01	Unigraphics Solutions	Electronic Data Systems		21.5	%		1,224.0		52.9	%		68.8	%		80.8	%
10/27/98	Citizens Corp.	Allmerica Financial Corp.		18.2	%		1,165.0		20.6	%		17.2	%		20.9	%
03/24/99	Knoll	Warburg, Pincus Ventures		41.8	%		1,154.2		83.6	%		51.9	%		46.4	%
12/01/99	Boise Cascade Office Products	Boise Cascade Corp.		19.5	%		1,086.8		43.5	%		55.3	%		60.0	%
04/30/98	Mycogen Corp.	Dow AgroSciences LLC		37.8	%		1,067.3		41.8	%		40.0	%		52.4	%
10/22/98	BA Merchant Svcs.	Bank of America National Trust		34.6	%		1,003.6		47.1	%		56.2	%		42.0	%
		Aggregate Median Premium:							21.7	%		22.6	%		28.3	%
		Implied Stock Price:						$	47.68		$	48.19		$	56.45
Companies with Market Capitalizations between $500MM-$1 Billion
10/27/00	Azurix Corp.	Enron Corp.		35.1	%		987.9		135.1	%		135.1	%		134.1	%
07/17/98	West Teleservices Corp.	Investor Group		15.0	%		981.6		25.9	%		29.2	%		22.8	%
01/13/97	Zurich Reinsurance Centre	Zurich Versicherungs GmbH		34.0	%		942.5		17.1	%		18.5	%		11.6	%
03/21/99	Spelling Entertainment Group	Viacom		19.1	%		927.1		8.3	%		43.2	%		54.5	%
05/05/97	Florida East Coast Industries	St Joe Paper Co.		46.0	%		923.3		14.9	%		16.6	%		9.7	%
10/21/99	Student Loan Corporation	Citigroup		20.0	%		900.0		11.5	%		11.6	%		0.8	%
05/14/97	Enron Global Power & Pipelines	Enron Corp.		49.4	%		884.7		11.8	%		13.7	%		19.7	%
11/05/99	PEC Israel Economic Corp.	Discount Investment Corp.		43.7	%		784.4		0.2	%		1.0	%		2.8	%
01/21/97	Mafco Consolidated Group	Mafco Holdings		15.0	%		778.5		23.5	%		23.5	%		27.6	%
03/17/98	BET Holdings	Investor Group		42.1	%		717.2		4.0	%		14.3	%		17.9	%
09/08/98	PEC Israel Economic Corp.	Investor Group		18.6	%		670.2		60.0	%		55.7	%		50.5	%
01/31/00	Thermo BioAnalysis	Thermo Instrument Systems		29.9	%		592.4		51.4	%		55.6	%		53.4	%
03/23/00	Homestead Village	Security Capital Group		27.7	%		585.0		49.1	%		56.2	%		98.8	%
04/01/99	Aqua Alliance	Vivendi SA		22.2	%		562.8		28.9	%		19.0	%		101.7	%
09/18/97	Guaranty National Corp.	Orion Capital Corp.		22.7	%		554.2		10.8	%		23.9	%		27.7	%
06/02/97	Acordia	Anthem		39.2	%		540.0		12.7	%		11.5	%		26.0	%
05/30/01	Bacou USA	Bacou SA		32.6	%	$	515.5		21.8	%		17.3	%		11.3	%
		Aggregate Median Premium:							17.1	%		19.0	%		26.0	%
		Implied Stock Price:						$	45.88		$	46.76		$	55.43

- 51 -

DRAFT

Premiums Analysis

Premiums Analysis: Minority Closeouts(Cont’d.)

									% Stock Premium Before
						Equity			Announcement Date
Date			% Shares			Purchase
Announced	Target	Acquiror	Acquired			Price ($MM)			1 Day			1 Week			4 Weeks
Companies with Market Capitalizations less than $500MM
01/28/97	Calgene	Monsanto Co.		43.7	%		485.7		62.0	%		60.0	%		60.0	%
01/22/98	BT Office Products Intl	Koninklijke KNP BT NV		30.0	%		460.2		32.5	%		78.9	%		78.9	%
05/22/97	Chaparral Steel Co.	Texas Industries		18.7	%		446.8		20.4	%		25.3	%		29.2	%
03/05/98	XLConnect Solutions	Xerox Corp		30.3	%		359.5		-11.1	%		15.1	%		22.1	%
01/19/00	Trigen Energy Corp.	Elyo (Suez Lyonnaise des Eaux)		50.4	%		296.2		38.2	%		42.4	%		31.9	%
12/03/98	Banner Aerospace	Fairchild Corp		30.8	%		283.3		25.7	%		41.9	%		40.8	%
10/16/98	BRC Holdings	Affiliated Computer Services		49.0	%		261.0		17.2	%		16.9	%		15.2	%
01/08/98	Rayonier Timberlands LP	Rayonier		25.3	%		260.0		11.2	%		25.3	%		17.5	%
12/14/00	NPC International	O Gene Bicknell		39.5	%		257.5		11.3	%		6.8	%		32.0	%
02/20/97	NHP	Apartment Investment & Mgmt Co.		46.7	%		254.6		28.3	%		25.2	%		16.9	%
05/21/99	ThermoSpectra (Thermo Instr)	Thermo Instrument Systems		14.5	%		251.6		39.1	%		43.8	%		61.0	%
09/23/98	J&L Specialty Steel	Usinor SA		46.5	%		247.1		100.0	%		112.5	%		37.8	%
10/05/98	Insignia Properties Trust	Apartment Investment & Mgmt Co		25.0	%		243.3		7.5	%		7.5	%		0.0	%
11/12/98	Aquila Gas Pipeline Corp.	UtiliCorp United		18.4	%		235.2		23.1	%		17.4	%		68.4	%
10/21/98	Capital Factors Holdings	Union Planters Bank		12.7	%		221.0		4.5	%		9.0	%		2.9	%
04/16/97	Steck-Vaughn Publishing Corp.	Harcourt General		17.0	%		215.9		21.7	%		32.6	%		24.2	%
07/20/00	JLK Direct Distribution	Kennametal		17.0	%		214.5		48.9	%		94.4	%		68.7	%
06/03/97	Faulding	FH Faulding & Co Ltd.		38.0	%		203.7		25.6	%		22.7	%		46.0	%
04/12/99	Meadowcraft	Investor Group		27.0	%		197.1		65.0	%		63.3	%		77.8	%
12/08/99	Robertson-Ceco Corp.	Heico Companies LLC		30.8	%		185.3		46.0	%		43.8	%		41.5	%
01/19/00	Conning Corp.	Metropolitan Life Insurance Co		43.4	%		177.3		15.6	%		38.9	%		52.1	%
07/27/00	Brookdale Living Communities	Investor Group		20.5	%		176.6		1.7	%		2.5	%		4.7	%
01/20/98	NACT Telecommunications	World Access		39.0	%		149.9		12.0	%		12.5	%		16.7	%
05/05/99	Thermo Power Corp.	Thermo Electron Corp.		30.7	%		145.5		5.5	%		-1.5	%		41.2	%
12/15/99	ThermoLase Corp.	Thermo Electron Corp.		31.1	%		125.7		15.0	%		28.6	%		45.7	%
10/20/99	Thermoretec Corp.	Thermo Electron Corp.		44.6	%		124.5		27.3	%		33.3	%		34.9	%
07/09/97	Seaman Furniture	Investor Group		33.1	%		122.5		21.5	%		25.3	%		21.5	%
10/20/99	Randers Killam Gr	Thermo Electron Corp.		8.8	%		116.5		12.5	%		12.5	%		33.3	%
		Median Premium:							21.6	%		25.3	%		34.1	%
		Implied Stock Price:						$	47.64		$	49.23		$	59.02
		All Companies Median Premium:							21.5	%		23.9	%		30.7	%
		Implied Stock Price:						$	47.60		$	48.68		$	57.50

- 52 -

DRAFT

Financial Projections

- 53 -

DRAFT

Financial Projections

Overview of Internal Budgeting Process

• Before 2001, the Company’s annual budgeting process was a loosely coordinated event in which not all divisional managers participated

• DrKW has only received a complete set of budgets resulting from the most recent internal budgeting process, which was completed in March 2001 (the “March 2001 Plan”)

— For the fiscal year 2000 process, a substantial amount of data is missing

• The March 2001 Plan contains the following information:

• Fiscal year 2001 budgets that were prepared a year prior (the “2001 Internal Budget”)

• Interim fiscal year 2001 estimates (“9 Months Annualized Financials”), based on nine months’ actual results

• Budgets for fiscal years 2002 and 2004

• The 9 Months Annualized Financials proved to be consistently lower than the 2001 Internal Budget

• The 2002 Internal Budget contained in the March 2001 Plan is substantially similar to the consolidated management projections prepared in April 2001

• Revenue falls approximately 3%

• Operating income increases 1%, possibly due to differences in cost allocation

- 54 -

DRAFT

Financial Projections

Comparison of Projections($MM)

	Fiscal Year Ended April 30, 2001							Fiscal Year Ended April 30, 2002
	Internal Budget		9 Months					Internal Budget		Management
	at Beg. of Yr.(1)		Annualized(2)		% Difference			at Beg. of Yr.(1)		9/01 Projections		% Difference
Revenue
Chemical Specialties	NA		$	169.9	NA			$	184.7	$	166.1		(10.1	%)
Plumbmaster		86.2		77.8		(9.8	%)		80.9		116.2		43.6	%
Partsmaster		46.1		42.6		(7.5	%)		45.7		44.9		(1.7	%)
RPG		24.1		27.6		14.6	%		28.4		30.0		5.5	%
Landmark		42.7		41.3		(3.2	%)		39.7		44.4		11.8	%
Western Europe		203.3		155.1		(23.7	%)		170.0		148.4		(12.7	%)
Eastern Europe		34.6		26.3		(24.1	%)		32.0		27.3		(14.7	%)
Latin America		37.4		36.2		(3.3	%)		45.8		37.3		(18.5	%)
Asia		29.2		27.9		(4.5	%)		32.2		27.5		(14.5	%)
Total	NA		$	604.6	NA			$	659.4	$	642.1		(2.7	%)
Operating Income
Chemical Specialties	NA		$	16.8	NA			$	18.9	$	14.1		(25.5	%)
Plumbmaster		4.5		5.0		9.4	%		3.6		6.9		91.0	%
Partsmaster		8.2		5.0		(38.7	%)		7.2		4.5		(37.6	%)
RPG		3.7		3.8		1.4	%		4.2		4.7		10.9	%
Landmark		2.3		1.1		(50.5	%)		0.9		—		(100.0	%)
Western Europe		11.6		5.4		(53.5	%)		6.6		19.3		192.6	%
Eastern Europe		4.9		2.8		(41.5	%)		5.8		6.1		5.8	%
Latin America		6.8		3.2		(52.6	%)		8.2		2.6		(68.4	%)
Asia		4.1		3.3		(20.5	%)		4.7		2.6		(44.1	%)
Total	NA		$	46.4	NA			$	60.1	$	60.8		1.1	%

Note: Operating income excludes unallocated corporate overhead expenses.
(1) Projections made during the fourth quarter of the previous fiscal year.
(2) Estimates made during the fourth quarter of fiscal year 2001, utilizing nine months of actual results.

- 55 -

DRAFT

Financial Projections

Overview of Management Projections

• In April 2001, Company management prepared its first set of projections for all operating segments on a consolidated basis

• Management has advised that these were prepared independently of plans previously prepared by divisional managers

• The projections were subsequently revised by management in July 2001 to reflect deteriorating results and softening economic conditions

• The April projections were prepared before the Company’s fourth quarter results were available

• Revisions were made partly in response to the shortfall in NCH’s fourth quarter results

• The largest downward revision occurred in Chemical Specialties, which management attributed to a softening construction market, increasing price sensitivity by customers and an ongoing trend of vendor consolidation

• The projections were revised again in mid-September in response to the September 11 attacks

• Management felt that NCH would likely suffer in the short-term from a general slowdown in business activity as well as reduced productivity from its direct salespeople

• Downward revisions focused more heavily on the Company’s performance in 2002, with performance in 2003 and beyond consistent with the July projections, except in Western Europe

• The April 2001 projections result in discounted cash flow values approximately 7% to 8% higher than those resulting from the mid-September 2001 projections

• The July 2001 projections result in discounted cash flow values approximately 5% to 6% higher than the September ranges

- 56-

DRAFT

Financial Projections

Projection Comparison — Consolidated($MM)

(FY Ended April 30)																				CAGR
		2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
	April 2001	$	649.6		$	650.7		$	673.2		$	701.6		$	725.2		$	751.4			3.0	%
	July 2001		—			642.1			647.2			669.6			697.4			727.0			2.3	%
	September 2001		—			625.8			647.3			669.6			697.4			727.1			2.3	%
Change
	July 2001					($8.6	)		($26.0	)		($32.0	)		($27.8	)		($24.4	)
	September 2001					(16.3	)		0.1			—			—			0.1
Operating Income
	April 2001	$	39.8		$	41.7		$	43.6		$	46.4		$	48.4		$	50.7			6.2	%
	July 2001		—			31.9			36.3			40.7			44.7			48.3			5.0	%
	September 2001		—			29.5			34.8			39.2			44.8			48.4			5.0	%
Change
	July 2001					($9.8	)		($7.3	)		($5.7	)		($3.7	)		($2.4	)
	September 2001					(2.4	)		(1.5	)		(1.5	)		0.1			0.1
Operating Margin
	April 2001		6.1	%		6.4	%		6.5	%		6.6	%		6.7	%		6.7	%
	July 2001		—			5.0	%		5.6	%		6.1	%		6.4	%		6.6	%
	September 2001		—			4.7	%		5.4	%		5.9	%		6.4	%		6.7	%

- 57 -

DRAFT

Financial Projections

Projection Comparison — Chemical Specialties($MM)

(FY Ended April 30)																				CAGR
		2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
	April 2001	$	169.5		$	173.9		$	179.6		$	186.1		$	192.7		$	199.6			3.3	%
	July 2001		—			166.1			166.1			171.7			177.9			185.0			1.8	%
	September 2001		—			161.5			166.1			171.7			177.9			185.0			1.8	%
Change
	July 2001					($7.8	)		($13.5	)		($14.4	)		($14.8	)		($14.6	)
	September 2001					(4.6	)		—			—			—			—
Operating Income
	April 2001	$	16.6		$	18.8		$	19.4		$	20.1		$	20.9		$	21.6			6.8	%
	July 2001		—			14.1			15.9			16.8			18.6			19.4			4.0	%
	September 2001		—			13.5			15.9			16.8			18.6			19.4			4.0	%
Change
	July 2001					($4.7	)		($3.5	)		($3.3	)		($2.3	)		($2.2	)
	September 2001					(0.6	)		—			—			—			—
Operating Margin
	April 2001		9.8	%		10.8	%		10.8	%		10.8	%		10.8	%		10.8	%
	July 2001		—			8.5	%		9.6	%		9.8	%		10.5	%		10.5	%
	September 2001		—			8.4	%		9.6	%		9.8	%		10.5	%		10.5	%

Note: Operating income excludes unallocated corporate overhead expenses.

- 58 -

DRAFT

Financial Projections

Projection Comparison — Plumbing Products Group($MM)

(FY Ended April 30)																				CAGR
		2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
	April 2001	$	111.4		$	116.2		$	121.6		$	127.6		$	133.5		$	139.7			4.6	%
	July 2001		—			116.2			121.6			127.6			133.5			139.7			4.6	%
	September 2001		—			113.0			121.6			127.6			133.5			139.7			4.6	%
Change
	July 2001				$	0.0		$	0.0		$	0.0		$	0.0		$	0.0
	September 2001					(3.2	)		—			—			—			—
Operating Income
	April 2001	$	7.8		$	6.9		$	8.4		$	10.2		$	10.6		$	11.1			9.2	%
	July 2001		—			6.9			8.4			10.2			10.6			11.1			9.2	%
	September 2001		—			6.6			8.4			10.2			10.6			11.1			9.2	%
Change
	July 2001				$	0.0		$	0.0		$	0.0		$	0.0		$	0.0
	September 2001					(0.3	)		—			—			—			—
Operating Margin
	April 2001		7.0	%		5.9	%		6.9	%		8.0	%		7.9	%		7.9	%
	July 2001		—			5.9	%		6.9	%		8.0	%		7.9	%		7.9	%
	September 2001		—			5.8	%		6.9	%		8.0	%		7.9	%		7.9	%

Note: Operating income excludes unallocated corporate overhead expenses.

- 59 -

DRAFT

Financial Projections

Projection Comparison — Partsmaster Group($MM)

(FY Ended April 30)																				CAGR
		2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
	April 2001	$	43.6		$	45.2		$	47.5		$	49.8		$	52.2		$	54.8			4.7	%
	July 2001		—			44.9			46.3			47.6			49.1			50.5			3.0	%
	September 2001		—			43.7			46.3			47.6			49.1			50.5			3.0	%
Change
	July 2001					($0.3	)		($1.2	)		($2.2	)		($3.1	)		($4.3	)
	September 2001					(1.2	)		—			—			—			—
Operating Income
	April 2001	$	4.9		$	6.3		$	6.6		$	6.9		$	7.2		$	7.6			11.6	%
	July 2001		—			4.5			4.6			4.8			4.9			5.1			1.0	%
	September 2001		—			4.3			4.6			4.8			4.9			5.1			1.0	%
Change
	July 2001					($1.8	)		($2.0	)		($2.1	)		($2.3	)		($2.5	)
	September 2001					(0.2	)		—			—			—			—
Operating Margin
	April 2001		11.2	%		13.9	%		13.9	%		13.9	%		13.8	%		13.9	%
	July 2001		—			10.0	%		9.9	%		10.1	%		10.0	%		10.1	%
	September 2001		—			9.8	%		9.9	%		10.1	%		10.0	%		10.1	%

Note: Operating income excludes unallocated corporate overhead expenses.

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DRAFT

Financial Projections

Projection Comparison — Landmark Direct($MM)

(FY Ended April 30)																				CAGR
		2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
	April 2001	$	41.9		$	44.7		$	54.2		$	58.0		$	63.7		$	70.0			10.8	%
	July 2001		—			44.4			47.3			50.6			54.2			57.9			6.7	%
	September 2001		—			43.2			47.3			50.6			54.2			57.9			6.7	%
Change
	July 2001					($0.3	)		($6.9	)		($7.4	)		($9.5	)		($12.1	)
	September 2001					(1.2	)		—			—			—			—
Operating Income
	April 2001	$	0.2		$	1.8		$	3.1		$	3.4		$	3.7		$	4.1			112.8	%
	July 2001		—			—			1.2			2.5			2.7			2.9			95.1	%
	September 2001		—			—			1.2			2.5			2.7			2.9			95.1	%
Change
	July 2001					($1.8	)		($1.9	)		($0.9	)		($1.0	)		($1.2	)
	September 2001					—			—			—			—			—
Operating Margin
	April 2001		0.5	%		4.0	%		5.7	%		5.9	%		5.8	%		5.9	%
	July 2001		—			0.0	%		2.5	%		4.9	%		5.0	%		5.0	%
	September 2001		—			0.0	%		2.5	%		4.9	%		5.0	%		5.0	%

Note: Operating income excludes unallocated corporate overhead expenses.

- 61 -

DRAFT

Financial Projections

Projection Comparison — Retail Products Group($MM)

(FY Ended April 30)																				CAGR
		2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
	April 2001	$	26.2		$	28.1		$	32.3		$	37.1		$	42.7		$	49.1			13.4	%
	July 2001		—			30.0			33.0			36.3			39.9			43.9			10.9	%
	September 2001		—			29.2			33.0			36.3			39.9			43.9			10.9	%
Change
	July 2001				$	1.9		$	0.7			($0.8	)		($2.8	)		($5.2	)
	September 2001					(0.8	)		—			—			—			—
Operating Income
	April 2001	$	4.1		$	3.4		$	3.9		$	4.5		$	5.1		$	5.9			9.5	%
	July 2001		—			4.7			5.1			5.7			6.2			6.9			13.9	%
	September 2001		—			4.5			5.1			5.7			6.2			6.9			13.9	%
Change
	July 2001				$	1.3		$	1.2		$	1.2		$	1.1		$	1.0
	September 2001					(0.2	)		—			—			—			—
Operating Margin
	April 2001		15.6	%		12.1	%		12.1	%		12.1	%		11.9	%		12.0	%
	July 2001		—			15.7	%		15.5	%		15.7	%		15.5	%		15.7	%
	September 2001		—			15.4	%		15.5	%		15.7	%		15.5	%		15.7	%

Note: Operating income excludes unallocated corporate overhead expenses.

- 62-

DRAFT

Financial Projections

Projection Comparison — Western Europe($MM)

(FY Ended February 28)																				CAGR
		2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
	April 2001	$	163.9		$	148.4		$	139.5		$	139.5		$	132.1		$	125.0			(5.3	%)
	July 2001		—			148.4			139.5			139.5			143.7			148.0			(2.0	%)
	September 2001		—			145.1			139.5			139.5			143.7			148.0			(2.0	%)
Change
	July 2001				$	0.0		$	0.0		$	0.0		$	11.6		$	23.0
	September 2001					(3.3	)		—			—			—			—
Operating Income
	April 2001	$	24.0		$	20.8		$	19.5		$	19.5		$	18.5		$	17.5			(7.6	%)
	July 2001		—			19.3			19.5			19.5			20.1			20.7			(3.6	%)
	September 2001		—			18.6			18.1			18.1			20.1			20.7			(3.6	%)
Change
	July 2001					($1.5	)	$	0.0		$	0.0		$	1.6		$	3.2
	September 2001					(0.7	)		(1.4	)		(1.4	)		—			—
Operating Margin
	April 2001		14.6	%		14.0	%		14.0	%		14.0	%		14.0	%		14.0	%
	July 2001		—			13.0	%		14.0	%		14.0	%		14.0	%		14.0	%
	September 2001		—			12.8	%		13.0	%		13.0	%		14.0	%		14.0	%

Note: Operating income excludes unallocated corporate overhead expenses.

- 63 -

DRAFT

Financial Projections

Projection Comparison — Eastern Europe ($MM)

(FY Ended February 28)																			CAGR
	2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
April 2001	$	28.0		$	27.3		$	28.4		$	29.6		$	30.6		$	31.6			2.4	%
July 2001		—			27.3			27.6			28.4			29.3			30.1			1.5	%
September 2001		—			26.7			27.6			28.4			29.3			30.1			1.5	%
Change
July 2001				$	0.0			($0.8	)		($1.2	)		($1.3	)		($1.5	)
September 2001					(0.6	)		—			—			—			—
Operating Income
April 2001	$	6.3		$	6.3		$	5.7		$	5.3		$	5.5		$	5.7			(2.5	%)
July 2001		—			6.1			5.5			5.4			5.3			5.4			(3.8	%)
September 2001		—			5.9			5.5			5.4			5.3			5.4			(3.8	%)
Change
July 2001					($0.2	)		($0.2	)	$	0.1			($0.2	)		($0.3	)
September 2001					(0.2	)		—			—			—			—
Operating Margin
April 2001		22.5	%		23.1	%		20.1	%		17.9	%		18.0	%		18.0	%
July 2001		—			22.3	%		19.9	%		19.0	%		18.1	%		17.9	%
September 2001		—			22.1	%		19.9	%		19.0	%		18.1	%		17.9	%

Note: Operating income excludes unallocated corporate overhead expenses.

-64-

DRAFT

Financial Projections

Projection Comparison — Latin America($MM)

(FY Ended February 28)																			CAGR
	2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
April 2001	$	36.2		$	36.8		$	38.6		$	40.5		$	42.5		$	44.7			4.3	%
July 2001		—			37.3			38.4			39.6			40.7			42.0			3.0	%
September 2001		—			36.5			38.4			39.6			40.7			42.0			3.0	%
Change
July 2001				$	0.5			($0.2	)		($0.9	)		($1.8	)		($2.7	)
September 2001					(0.8	)		—			—			—			—
Operating Income
April 2001	$	2.7		$	2.6		$	2.7		$	2.8		$	3.0		$	3.1			3.5	%
July 2001		—			2.6			2.7			2.8			3.0			3.1			3.5	%
September 2001		—			2.5			2.7			2.8			3.0			3.1			3.5	%
Change
July 2001				$	0.0		$	0.0		$	0.0		$	0.0		$	0.0
September 2001					(0.1	)		—			—			—			—
Operating Margin
April 2001		7.5	%		7.1	%		7.0	%		6.9	%		7.1	%		6.9	%
July 2001		—			7.0	%		7.0	%		7.1	%		7.4	%		7.4	%
September 2001		—			6.8	%		7.0	%		7.1	%		7.4	%		7.4	%

Note: Operating income excludes unallocated corporate overhead expenses.

-65-

DRAFT

Financial Projections

Projection Comparison — Asia ($MM)

(FY Ended February 28)																			CAGR
	2001A			2002			2003			2004			2005			2006			'01 - '06
Net Sales
April 2001	$	28.9		$	30.1		$	31.6		$	33.5		$	35.2		$	36.9			5.0	%
July 2001		—			27.5			27.5			28.3			29.1			30.0			0.7	%
September 2001		—			26.9			27.5			28.3			29.1			30.0			0.7	%
Change
July 2001					($2.6	)		($4.1	)		($5.2	)		($6.1	)		($6.9	)
September 2001					(0.6	)		—			—			—			—
Operating Income
April 2001	$	3.0		$	3.8		$	3.6		$	3.5		$	3.6		$	3.8			6.1	%
July 2001		—			2.6			2.6			2.7			3.1			3.5			3.9	%
September 2001		—			2.5			2.6			2.7			3.1			3.5			3.9	%
Change
July 2001					($1.2	)		($1.0	)		($0.8	)		($0.5	)		($0.3	)
September 2001					(0.1	)		—			—			—			—
Operating Margin
April 2001		10.4	%		12.6	%		11.4	%		10.4	%		10.2	%		10.3	%
July 2001		—			9.5	%		9.5	%		9.5	%		10.7	%		11.7	%
September 2001		—			9.3	%		9.5	%		9.5	%		10.7	%		11.7	%

Note: Operating income excludes unallocated corporate overhead expenses.

-66-

DRAFT

Stock Price Performance

-67-

DRAFT

Stock Price Performance

Indexed Stock Price History⁽¹⁾

•     NCH’s stock has outperformed the S&P 500 in the past year, and was outperforming its peer group before the stock’s sharp decline in June 2001

(1) Peer group includes: Hawkins, Aceto, JLM Industries, Hughes Supply, Applied Industrial Technologies, Crane Group, Lawson Products, Kaman, Huttig Building Products, Noland, NSI, SCP Pool and Aviall.

-68-

DRAFT

Stock Price Performance

Indexed Stock Price History (Cont’d)⁽¹⁾

•     Over a five-year period, NCH stock has underperformed both its peer group and the S&P 500

(1) Peer group includes: Hawkins, Aceto, Hughes Supply, Applied Industrial Technologies, Crane Group, Lawson Products, Kaman, Noland, NSI, SCP Pool and Aviall.

-69-

Stock Price Performance
DRAFT

Stock Price and Volume History

-70-

DRAFT

Stock Price Performance

Stock Price and Volume History (Cont’d)

• NCH stock traded in the low $70s in late 1997 and early 1998, but has not traded above $56.28 in the past year

- 71 -

DRAFT

Stock Price Performance

Historical P/E Ratios

• The Company’s stock traded in a P/E range of 15x – 16x near the end of fiscal year 1998, as compared to a multiple of approximately 11x today

⁽¹⁾ Peer group includes: Hawkins, Aceto, JLM Industries, Hughes Supply, Applied Industrial Technologies, Lawson Products, Kaman, Noland, NSI, SCP Pool and Aviall.

- 72 -

DRAFT

Stock Price Performance

Trading Distribution — Last Two Years

• 80% of trading volume has been at or below the Levy Group’s $47.50 per share bid over the last two years

- 73 -

DRAFT

Stock Price Performance

Trading Distribution – Past Year

• 70% of trading volume has been at or below the Levy Group’s $47.50 per share bid over the past year

- 74 -