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

exhibit (c)(vii)

Preliminary & Confidential

PROJECT RANGER

Presentation to the Special Committee of the Board of Directors

December 18, 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.

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 -

DRAFT

Situation Overview

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 initial 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 -

DRAFT

Situation Overview

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 -

DRAFT

Situation Overview

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, the Special Committee, DrKW 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, 2001, 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 -

DRAFT

Situation Overview

Transaction Timeline (Cont’d)

• On November 8 and November 12, 2001, 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, 2001, 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

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

- 5 -

DRAFT

Situation Overview

Transaction Timeline (Cont’d)

• On November 29, 2001, 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 6.8x

– 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 -

DRAFT

Situation Overview

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%

• On December 4, 2001, Deutsche Bank called to communicate the Levy Group’s increase in its offer for the minority stake to $48.50 per share

• On December 5, 2001, the Special Committee, DrKW and S&C met to discuss the Levy’s most recent proposal

• Afterwards, DrKW communicated to Deutsche Bank the Special Committee’s position that it was not prepared to make a formal counter offer at that time, but indicated that the Levy’s Group’s next proposal should be in the range of $54.00 per share

• On December 6, 2001, DrKW and S&C received eight additional reports prepared by Bain

• Four reports, dated November and December 2000 (the “Strategic Options Reports”), discuss NCH’s strategic options and deal specifically with a possible going private transaction as one of NCH’s strategic options

– Bain was paid $400,000 for the Strategic Options Reports

• The other four reports, dated from March 2000 to July 2001, discuss strategic options for Partsmaster, possible Internet strategies and corporate governance issues

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

- 7 -

DRAFT

Situation Overview

Transaction Timeline (Cont’d)

• DrKW and S&C discussed the Strategic Options Reports with the Bain manager responsible for them in two conference calls on December 7 and 8

• In addition, DrKW and S&C discussed the Strategic Options Reports with Tom Hetzer on December 10

• On December 10, 2001, BofA extended its due diligence deadline to December 12

• Deutsche Bank has informed DrKW that, as of December 12, BofA had completed its due diligence and this condition to its commitment expired

• On December 14, 2001, NCH filed its Form 10-Q for the quarter ended October 31

• The financials are consistent with those previously supplied by the Company

- 8 -

DRAFT

Overview of Levy Group
Proposal

- 9 -

DRAFT

Overview of Levy Group Proposal

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

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

Implied Market Capitalization

Offer Price	$	48.50
Total Shares Outstanding (MM)		5.3
Plus: Option Value		0.3
Equity Market Value	$	257.7
Plus: Net Debt		17.2
Adjusted Market Value	$	274.9

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		23.8	%		23.4	%		10.2	%		(13.8	%)		37.6	%

NCH Acquisition Multiples Implied by $48.50 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

NI

BV

LTM as of 10/31/01

$

652.8

$

42.1

$

30.1

$

19.9

$

230.7

0.4x

6.5x

9.1x

13.0x

1.1x

Fiscal Year ‘02(2)

625.8

43.5

29.5

19.6

234.9

0.4x

6.3x

9.3x

13.1x

1.1x

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

- 10 -

DRAFT

Overview of Levy Group Proposal

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

Price Per Share	$	48.50		$	49.00		$	51.00		$	53.00		$	55.00		$	57.00		$	59.00
Premium to 9/28/01		23.8	%		25.0	%		30.1	%		35.2	%		40.3	%		45.4	%		50.5	%
Fully-Diluted Shares		5.3			5.3			5.3			5.3			5.3			5.3			5.3
Equity Market Value	$	257.7		$	260.4		$	271.0		$	281.6		$	292.3		$	302.9		$	313.5
Plus Net Debt as of 10/31/01		17.2			17.2			17.2			17.2			17.2			17.2			17.2
Adjusted Market Value	$	274.9		$	277.6		$	288.2		$	298.9		$	309.5		$	320.1		$	330.7

Sales
	FY 2001	$	649.6	0.4x	0.4x	0.4x	0.5x	0.5x	0.5x	0.5x
	LTM		652.8	0.4x	0.4x	0.4x	0.5x	0.5x	0.5x	0.5x
	FY 2002E		625.8	0.4x	0.4x	0.5x	0.5x	0.5x	0.5x	0.5x
EBITDA
	FY 2001	$	51.9	5.3x	5.3x	5.6x	5.8x	6.0x	6.2x	6.4x
	LTM		42.1	6.5x	6.6x	6.8x	7.1x	7.4x	7.6x	7.9x
	FY 2002E		43.5	6.3x	6.4x	6.6x	6.9x	7.1x	7.4x	7.6x
EPS
	FY 2001	$	3.77	12.9x	13.0x	13.5x	14.1x	14.6x	15.1x	15.7x
	LTM		3.73	13.0x	13.1x	13.7x	14.2x	14.7x	15.3x	15.8x
	FY 2002E		3.70	13.1x	13.2x	13.8x	14.3x	14.9x	15.4x	15.9x

- 11 -

DRAFT

Selected Financial
Information

- 12 -

DRAFT

Selected Financial Information

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		314.7			314.6			283.9			271.1
Gross Margin		46.7	%		46.7	%		43.7	%		41.5	%
SG&A		(257.0	)		(256.9	)		(232.0	)		(229.0	)
SG&A/Sales		38.1	%		38.1	%		35.7	%		35.1	%
EBITDA		57.7			57.7			51.9			42.1
Margin		8.6	%		8.6	%		8.0	%		6.4	%
EBIT		44.0			43.9			39.8			30.1
Operating Margin		6.5	%		6.5	%		6.1	%		4.6	%
Net Interest Expense		0.0			0.0			(3.0	)		(1.8	)
Taxes		(16.0	)		(16.0	)		(16.8	)		(8.4	)
Tax Rate		36.5	%		36.5	%		45.7	%		29.6	%
Net Income		27.9			27.8			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		28.9			32.9			21.6		NA
Margin		4.3	%		4.9	%		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

		$	46.80
FD Shares Outstanding (MM)	x		5.308
Equity Market Value		$	248.4
Preferred Stock			0.0
Net Debt	+		17.2
Adjusted Market Value		$	265.6

Adjusted Market Value as a Multiple of:

	FY2001			LTM
Sales		0.4	x		0.4	x
EBITDA		5.1	x		6.3	x
EBIT		6.7	x		8.8	x
FCF		12.3	x		NA
Equity Market Value as a Multiple of:
Net Income		12.4	x		12.5	x
Book Value		1.1	x

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

- 13 -

DRAFT

Selected Financial Information

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		5.3x		5.8x		6.5x
EBIT		6.9x		7.7x		9.1x
Net Income		11.3x		12.3x		13.0x

⁽¹⁾ Includes results from continuing operations only.

- 14 -

DRAFT

Selected Financial Information

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

- 15 -

DRAFT

Selected Financial Information

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.

- 16 -

DRAFT

Selected Financial Information

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

- 17 -

DRAFT

Selected Financial Information

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	%

- 18 -

DRAFT

Selected Financial Information

Recent Quarter Results($ in Millions)⁽¹⁾

• Year-over-year revenue and operating income fell for the three and six months ended 10/31/01

• Operating income fell more steeply than revenue, as year-over-year margins fell significantly more than revenue declined

									��
		Three months ended								Six months ended
		10/31/01		10/31/00		% Change				10/31/01		10/31/00		% Change
Revenue
	Chemical Specialties		106.9		105.8		1.0	%			216.3		216.1		0.1	%
	Plumbing Products		28.7		29.4		-2.4	%			57.7		58.2		-0.9	%
	Partsmaster		17.7		19.2		-7.8	%			36.4		39.1		-6.9	%
	Landmark Direct		15.8		13.7		15.3	%			27.7		26.3		5.3	%
	Other		—		5.7		NM				—		14.7		NM
TOTAL			169.1		173.8		-2.7	%			338.1		354.4		-4.6	%

		Three months ended									Six months ended
		10/31/01			10/31/00			% Change			10/31/01			10/31/00			% Change
Operating Income, Pre-Corporate
	Chemical Specialties		8.7			11.2			-22.8	%		16.4			20.8			-21.1	%
	Margin		8.1	%		10.6	%					7.6	%		9.6	%
	Plumbing Products		0.0			1.5			-96.8	%		0.7			3.9			-81.2	%
	Margin		0.2	%		5.0	%					1.3	%		6.7	%
	Partsmaster		1.7			2.1			-17.3	%		3.2			3.8			-14.6	%
	Margin		9.6	%		10.7	%					8.9	%		9.7	%
	Landmark Direct		(0.8	)		0.7			-224.2	%		(1.4	)		0.6			-353.2	%
	Margin		NM			4.8	%					-5.2	%		2.2	%
TOTAL			9.6			15.4			-37.7	%		18.9			29.0			-34.9	%

⁽¹⁾ Results for the three and six month periods ended 10/31/00 include discontinued operations.

- 19 -

Selected Financial Information

Recent Quarter Results(Cont’d)

• Compared with the previous quarter, performance for the three months ended 10/31/01 was relatively flat

• Revenue slightly declined for all segments except for Landmark Direct while operating income slightly increased for all segments except for Plumbmaster

		Three months ended
		10/31/01		7/31/01		% Change
Revenue
	Chemical Specialties		106.9		109.4	-2.3	%
	Plumbing Products		28.7		29.0	-1.0	%
	Partsmaster		17.7		18.8	-5.9	%
	Landmark Direct		15.8		11.8	33.9	%
TOTAL			169.1		169.0	0.1	%

		Three months ended
		10/31/01			7/31/01			% Change
Operating Income, Pre-Corporate
	Chemical Specialties		8.7			7.7		12.7	%
	Margin		8.1	%		7.0	%
	Plumbing Products		0.0			0.7		-93.1	%
	Margin		0.2	%		2.4	%
	Partsmaster		1.7			1.5		11.7	%
	Margin		9.6	%		8.1	%
	Landmark Direct		(0.8	)		(0.6	)	31.2	%
	Margin	NM				-5.3	%
TOTAL			9.6			9.3		3.4	%

-20-

DRAFT

Valuation Summary

-21-

DRAFT

Valuation Summary

Preliminary Summary Valuation

(1)	Offer price indicated on December 4.
(2)	Includes 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.
(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.

-22-

DRAFT

Valuation Summary

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

							Enterprise Value
	Enterprise		Equity		Share		as a Multiple of FY 01
Methods and Assumptions	Value Range		Value Range		Price Range		Sales		EBITDA
Discounted Cash Flow Analysis-	$	309.2 - $383.5	$	291.9 - $366.3	$	55.00 - $69.00		0.5x - 0.6x		6.0x - 7.4x
April 2001 Projections
Discounted Cash Flow Analysis-	$	293.2 - $367.5	$	276.0 - $350.3	$	52.00 - $66.00		0.5x - 0.6x		5.6x - 7.1x
July 2001 Projections
Discounted Cash Flow Analysis-	$	287.9 - $362.2	$	270.7 - $345.0	$	51.00 - $65.00		0.4x - 0.6x		5.5x - 7. x
September 2001 Projections
Comparable Companies Trading	$	277.3 - $351.6	$	260.1 - $334.4	$	49.00 - $63.00		0.4x - 0.5x		5.3x - 6.8x
Analysis (w/ Premium)(1)
Comparable Acquisitions	$	250.8 - $335.7	$	233.6 - $318.5	$	44.00 - $60.00		0.4x - 0.5x		4.8x - 6.5x
Analysis(2)
Premiums Analysis(3)	$	272.0 - $325.1	$	254.8 - $307.9	$	48.00 - $58.00		0.4x - 0.5x		5.2x - 6.3x
52-Week Trading Range	$	204.3 - $315.9	$	187.1 - $298.7	$	35.25 - $56.28		0.3x - 0.5x		3.9x - 6.1x
Current Trading Price		$265.6		$248.4		$46.80		0.4x		5.1x

(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.

-23-

Valuation Summary

Certain Valuation Issues

• Retirement Obligations — Tax Benefits

•	The tax benefit associated with the retirement obligation is calculated based on a schedule created by the Company that analyzes projected deferred compensation payments. Three classes of deferred compensation obligations exist
•	General deferrals, which are available for immediate payout ($36.2MM)
	•    DrKW assumes general deferrals are paid out over a ten-year period
•	Executive plans, which cover the Levy family and select executives, which are distributed on a specified schedule ($31.4MM)
•	Sales plans, which are available after age 65 and are generally distributed over a 15-year period ($47.0MM)
	•    Sales plans not subject to the 15-year payout provision are assumed to be paid out over five years
•	The present value of the tax benefit ($19.9MM) is calculated based on the risk-free rate plus a risk premium of 250 basis points (7.59%)
•	The book value of the retirement obligation less the present value of the tax benefit is included in net debt

• Higgins Farm Litigation

• The amount, timing and tax deductibility of the Company’s possible payment in connection with the Higgins farm litigation is based on discussions with S&C

-24-

DRAFT

Appendix

-25-

DRAFT

Discounted Cash Flow
Analysis

-26-

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	$	77		$	77		$	77		$	77
			PV of Perpetuity		242			264			286			308
	10.0	%	Enterprise Value	$	319		$	341		$	363		$	385
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	302		$	324		$	346		$	367
			Implied Price Per Share	$	56.82		$	60.96		$	65.10		$	69.23
			Implied FCF Growth in Perpetuity		2.8	%		3.3	%		3.8	%		4.2	%
			Enterprise Value Multiple to FY ’01A EBITDA		6.1	x		6.6	x		7.0	x		7.4	x
			Enterprise Value Multiple to FY ’02E EBITDA		5.7	x		6.1	x		6.5	x		6.9	x
			PV of Cash Flow Stream	$	76		$	76		$	76		$	76
			PV of Perpetuity		237			259			280			302
	10.5	%	Enterprise Value	$	313		$	335		$	356		$	378
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	296		$	317		$	339		$	361
			Implied Price Per Share	$	55.75		$	59.81		$	63.87		$	67.93
			Implied FCF Growth in Perpetuity		3.2	%		3.8	%		4.3	%		4.7	%
			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		5.6	x		6.0	x		6.4	x		6.8	x
			PV of Cash Flow Stream	$	75		$	75		$	75		$	75
			PV of Perpetuity		233			254			275			296
	11.0	%	Enterprise Value	$	308		$	329		$	350		$	371
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	290		$	312		$	333		$	354
			Implied Price Per Share	$	54.71		$	58.69		$	62.67		$	66.66
			Implied FCF Growth in Perpetuity		3.7	%		4.3	%		4.8	%		5.2	%
			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		5.5	x		5.9	x		6.3	x		6.7	x

-27-

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	$	71		$	71		$	71		$	71
			PV of Perpetuity		233			254			276			297
	10.0	%	Enterprise Value	$	304		$	325		$	346		$	367
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	287		$	308		$	329		$	350
			Implied Price Per Share	$	54.01		$	58.00		$	61.99		$	65.99
			Implied FCF Growth in Perpetuity		3.3	%		3.8	%		4.2	%		4.6	%
			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		6.6	x		7.1	x		7.5	x		8.0	x
			PV of Cash Flow Stream	$	70		$	70		$	70		$	70
			PV of Perpetuity		229			250			270			291
	10.5	%	Enterprise Value	$	298		$	319		$	340		$	361
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	281		$	302		$	323		$	344
			Implied Price Per Share	$	52.99		$	56.91		$	60.82		$	64.74
			Implied FCF Growth in Perpetuity		3.7	%		4.3	%		4.7	%		5.1	%
			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		6.5	x		7.0	x		7.4	x		7.9	x
			PV of Cash Flow Stream	$	69		$	69		$	69		$	69
			PV of Perpetuity		224			245			265			286
	11.0	%	Enterprise Value	$	293		$	314		$	334		$	354
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	276		$	296		$	317		$	337
			Implied Price Per Share	$	51.99		$	55.84		$	59.68		$	63.52
			Implied FCF Growth in Perpetuity		4.2	%		4.7	%		5.2	%		5.6	%
			Enterprise Value Multiple to FY ’01A EBITDA		5.6	x		6.0	x		6.4	x		6.8	x
			Enterprise Value Multiple to FY ’02E EBITDA		6.4	x		6.8	x		7.3	x		7.7	x

-28-

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	$	65		$	65		$	65		$	65
			PV of Perpetuity		234			255			276			298
	10.0	%	Enterprise Value	$	299		$	321		$	342		$	363
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	282		$	303		$	325		$	346
			Implied Price Per Share	$	53.16		$	57.16		$	61.17		$	65.18
			Implied FCF Growth in Perpetuity		3.3	%		3.8	%		4.3	%		4.6	%
			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		8.3	x
			PV of Cash Flow Stream	$	65		$	65		$	65		$	65
			PV of Perpetuity		229			250			271			292
	10.5	%	Enterprise Value	$	294		$	315		$	336		$	357
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	277		$	298		$	318		$	339
			Implied Price Per Share	$	52.14		$	56.07		$	60.00		$	63.93
			Implied FCF Growth in Perpetuity		3.7	%		4.3	%		4.7	%		5.1	%
			Enterprise Value Multiple to FY ’01A EBITDA		5.7	x		6.1	x		6.5	x		6.9	x
			Enterprise Value Multiple to FY ’02E EBITDA		6.8	x		7.2	x		7.7	x		8.2	x
			PV of Cash Flow Stream	$	64		$	64		$	64		$	64
			PV of Perpetuity		225			246			266			286
	11.0	%	Enterprise Value	$	289		$	309		$	330		$	350
			Less: Net Debt (10/31/01)		17			17			17			17
			Equity Value	$	272		$	292		$	312		$	333
			Implied Price Per Share	$	51.16		$	55.01		$	58.87		$	62.72
			Implied FCF Growth in Perpetuity		4.2	%		4.7	%		5.2	%		5.6	%
			Enterprise Value Multiple to FY ’01A EBITDA		5.6	x		6.0	x		6.4	x		6.7	x
			Enterprise Value Multiple to FY ’02E EBITDA		6.6	x		7.1	x		7.6	x		8.0	x

-29-

Discounted Cash Flow Analysis

DRAFT

WACC Analysis

Unlevered Betas
	Current		Debt/
	Levered		Total			Unlevered
	Beta (1)		Capital			Beta
Average Comparable Company Beta		0.59		41.8	%		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		10.5	%		8.00	%		4.96	%		10.5	%
10%		11	%		0.46		10.9	%		8.30	%		5.15	%		10.3	%
20%		25	%		0.50		11.4	%		8.60	%		5.33	%		10.2	%
30%		43	%		0.54		12.0	%		8.90	%		5.52	%		10.1	%
40%		67	%		0.61		12.8	%		9.20	%		5.70	%		10.0	%
50%		100	%		0.70		13.9	%		9.50	%		5.89	%		9.9	%

Assumptions
Marginal Tax Rate	38.0%	Risk Free Rate of Return(3)	5.07%	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.

-30-

DRAFT

Comparable Companies
Analysis

-31-

Comparable Companies Analysis

DRAFT

Valuation Summary

			Relevant		Implied		Less:		Implied Equity
Relevant Measure			Multiple Range		Enterprise Value		Net Debt(1)		Value per Share
LTM EBITDA	$	42.1		5.5x  -    7.0x	$	232  -  $295	$	17.2	$	40.38  -  $52.28
2001E EBITDA		43.9		5.0x  -    6.5x		220  -    285		17.2		38.11  -    50.52
2002E EBITDA		47.1		4.5x  -    6.0x		212  -    283		17.2		36.72  -    50.04
LTM EPS	$	3.73		10.5x  -  14.0x					$	39.19  -  $52.25
2001E EPS		3.91		11.0x  -  15.0x						43.00  -    58.64
2002E EPS		4.13		10.0x  -  13.0x						41.26  -    53.64
Implied Compco Range(2)									$	40.00  -  $52.00
Plus: Median Minority Closeout Premium (22%)(3)										9.00  -    11.00
										________     ________
Implied Valuation Range										49.00  -    63.00

(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.

-32-

Comparable Companies Analysis

DRAFT

Comparable Company Analysis

									Enterprise Value/EBITDA									Price/EPS
			Price		Market		Enterprise
Name			12/14/01		Value		Value		LTM			CY01E			CY02E			LTM			CY01E			CY02E
Chemicals Distribution
		Hawkins	$	8.20	$	84.2	$	83.1		6.3	x		6.5	x	NA				12.1	x		12.7	x	NA
		Aceto		9.57		62.3		56.8		10.2	x	NA			NA			NM			NA			NA
		JLM Industries		1.60		14.9		29.8	NA			NA			NA			NM			NM			NA
Industrial Distribution
		Hughes Supply		29.00		707.1		1,130.4		9.7	x		7.8	x		7.2	x		17.1	x		15.6	x		13.3	x
		Applied Ind. Technologies		18.00		363.5		449.4		6.2	x		6.9	x		6.0	x		15.1	x		15.5	x		13.2	x
		Crane Group(1)		3.90		193.9		321.1		6.6	x		2.9	x		4.6	x		16.3	x		7.9	x		10.5	x
		Kaman Corp.		14.53		331.7		319.8		10.0	x	NA			NA				9.5	x		10.3	x		12.5	x
		Lawson Products		24.50		239.8		256.2		7.1	x		8.1	x	NA				14.1	x		17.0	x	NA
		Huttig Building Products		5.55		109.0		191.5		5.0	x		3.7	x	NA				12.1	x		12.1	x		9.3	x
		Noland		24.95		89.2		124.8		8.5	x		9.8	x	NA				14.9	x		15.7	x	NA
Other Distribution
		Acuity Brands		11.98		492.0		1,090.5		5.4	x	NA			NA				9.6	x	NA			NA
		SCP Pool Corp.		26.81		674.9		730.8		8.5	x		12.2	x		10.6	x		19.7	x		20.3	x		17.5	x
		Aviall		7.22		133.5		264.2		6.4	x		6.3	x		5.5	x		11.6	x		14.4	x		16.0	x
							Mean			7.5	x		7.1	x		6.8	x		13.8	x		14.2	x		13.2	x
							Median			6.8	x		6.9	x		6.0	x		14.1	x		15.0	x		13.2	x
	NCH Corporation(2)		$	46.80	$	248	$	266		6.3	x		6.1	x		5.6	x		12.5	x		12.0	x		11.3	x
	NCH Corporation(2)		$	39.19	$	208	$	225		5.3	x		5.1	x		4.8	x		10.5	x		10.0	x		9.5	x

(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.

-33-

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				5.5		7.3		71.0	%
	Aceto		2.3	%		23.1	%	NA			NM				7.6		5.9		90.0	%
	JLM Industries	NA				3.0	%		16.5	%		31.9	%		15.2		5.9		63.1	%
Industrial Distribution
	Hughes Supply		3.7	%		19.6	%		14.0	%		41.2	%		94.7		22.3		94.6	%
	Applied Ind. Technologies		4.6	%		17.3	%		7.5	%		20.5	%		36.7		14.6		75.9	%
	Crane Group		6.4	%		18.0	%	NA				39.4	%		80.0		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	%		51.9		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	%		188.3		24.4		97.9	%
	Aviall		8.0	%		34.4	%		29.5	%		39.2	%		96.9		18.2		98.4	%
Mean			6.6	%		18.9	%		16.7	%		33.6	%		51.0		14.9		74.6	%
Median			5.5	%		18.0	%		15.3	%		35.5	%		31.7		13.5		79.7	%
NCH Corporation			6.4	%		34.9	%	NA				5.3	%		8.0		2.3		42.4	%

-34-

DRAFT

Comparable Acquisitions
Analysis

-35-

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	$	17.3	$	33.64  -  $58.24
LTM EBITDA		42.1		6.0x  -    8.0x		253  -     337		17.3		44.33  -    60.20
LTM EPS		3.73		14.0x  -  16.0x						52.25  -    59.71
Implied Valuation Range(1)									$	44.00  -  $60.00

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

-36-

Comparable Acquisitions Analysis
DRAFT

Comparable Acquisitions Analysis($MM)

Purchase Price

Adjusted Purchase Price /

Equity Purchase Price/

Date Ann'd.

Acquirer Name/Target Name

Adjusted

Equity

Sales

EBITDA

Net Income

4/02/01

Kohlberg Investors/ Katy Industries

$

120.7

$

120.7

0.2x

4.0x

NM

1/22/01

SCP Pool Corp/ Hughes Supply

48.0

NA

0.4x

NA

NA

1/22/01

Sysco/ Guest Supply

223.1

184.9

0.6x

8.1x

16.6x

11/10/00

Vopak NV/ Ellis & Everard

482.2

444.0

0.4x

6.0x

11.7x

9/5/00

Brenntag (Stinnes AG)/ Holland Chemical

401.6

245.3

0.4x

6.7x

10.6x

8/01/00

Hagemeyer/ Pacific Dunlop-Electrical

198.5

198.5

0.4x

NA

NA

7/21/00

Rexel/ Westburne

725.0

668.7

0.4x

8.1x

13.7x

7/22/99

Mgmt.-led investor group/ White Cap Industries

185.4

185.4

0.6x

7.0x

17.5x

5/07/99

Unidare/ Oklahoma Rig and Supply

60.1

54.9

0.7x

9.7x

18.0x

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.

- 37 -

DRAFT

Leveraged Buyout Analysis

- 38 -

	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	%		87.6			21	%
Revolver				7.5	%		54.6			13	%
Inherited Debt				0.0	%		115.9			28	%
High Yield Debt				10.0	%		0.0			0	%
Equity							77.3			19	%
Total						$	414.3			100	%
Initial Debt / Total Initial Book Capitalization							77	%

Adjusted Purchase Price
Per Share Purchase Price		48.50
Shares Outstanding (MM) (10/31/01)		5.3
Equity Purchase Price	$	257.7
Plus: Net Debt @ 10/31/01		17.2
Adjusted Purchase Price	$	274.9
Shares Already Owned by Buyer		0.0
Adjusted Equity Purchase Price	$	257.7

Uses
	Amt.		%
W/C Cash	$	24.2		6	%
Inherited Debt		115.9		28	%
Cash Paid to Seller		257.7		62	%
Financing Transaction Costs		1.4		0	%
Other Transaction Costs		15.0		4	%
Rolled Equity		0.0		0	%
Total	$	414.3		100	%

Write-Up/Goodwill
Equity Purchase Price	257.7
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	27.1
Write-Up of PP&E Given        [0.0% of Excess]	—
New Deferred Taxes Created	—
Goodwill (Net of Original Goodwill)	27.1

- 39 -

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		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		4.5	%		3.2	%		0.5	%		(4.8	%)		(10.4	%)		(16.2	%)		(22.4	%)		(29.3	%)
Exit		2005		11.9	%		11.0	%		9.3	%		5.7	%		2.1	%		(1.7	%)		(5.5	%)		(9.6	%)
Year		2006		15.2	%		14.6	%		13.3	%		10.7	%		8.2	%		5.5	%		2.9	%		0.1	%

			Implied IRR at 6x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		15.3	%		14.1	%		11.7	%		7.0	%		2.2	%		(2.6	%)		(7.6	%)		(12.7	%)
Exit		2005		18.6	%		17.8	%		16.2	%		12.9	%		9.7	%		6.5	%		3.2	%		(0.2	%)
Year		2006		19.7	%		19.1	%		17.9	%		15.5	%		13.2	%		10.9	%		8.5	%		6.1	%

			Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		24.4	%		23.3	%		21.0	%		16.6	%		12.3	%		7.9	%		3.6	%		(0.8	%)
Exit		2005		24.3	%		23.5	%		22.0	%		19.0	%		16.0	%		13.1	%		10.1	%		7.1	%
Year		2006		23.6	%		23.0	%		21.9	%		19.7	%		17.5	%		15.3	%		13.1	%		11.0	%

			Implied IRR at 7x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		32.3	%		31.2	%		29.1	%		24.9	%		20.8	%		16.8	%		12.8	%		8.8	%
Exit		2005		29.3	%		28.5	%		27.1	%		24.3	%		21.4	%		18.7	%		15.9	%		13.2	%
Year		2006		27.0	%		26.5	%		25.4	%		23.3	%		21.2	%		19.2	%		17.1	%		15.1	%

- 40 -

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		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		(12.4	%)		(14.0	%)		(17.4	%)		(24.7	%)		(32.9	%)		(42.8	%)		(56.9	%)		(126.7	%)
Exit		2005		4.3	%		3.3	%		1.3	%		(2.8	%)		(7.1	%)		(11.7	%)		(16.7	%)		(22.4	%)
Year		2006		11.0	%		10.3	%		8.9	%		6.1	%		3.3	%		0.3	%		(2.8	%)		(6.0	%)

			Implied IRR at 6x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		0.9	%		(0.5	%)		(3.2	%)		(8.9	%)		(14.8	%)		(21.1	%)		(28.0	%)		(35.9	%)
Exit		2005		11.9	%		11.1	%		9.3	%		5.7	%		2.1	%		(1.6	%)		(5.5	%)		(9.6	%)
Year		2006		16.0	%		15.3	%		14.1	%		11.6	%		9.0	%		6.5	%		3.9	%		1.2	%

			Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		11.4	%		10.2	%		7.7	%		2.8	%		(2.3	%)		(7.4	%)		(12.7	%)		(18.3	%)
Exit		2005		18.2	%		17.4	%		15.8	%		12.6	%		9.3	%		6.1	%		2.7	%		(0.7	%)
Year		2006		20.2	%		19.6	%		18.4	%		16.1	%		13.8	%		11.5	%		9.1	%		6.8	%

			Implied IRR at 7x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		20.2	%		19.1	%		16.8	%		12.2	%		7.7	%		3.2	%		(1.4	%)		(6.1	%)
Exit		2005		23.7	%		22.9	%		21.4	%		18.4	%		15.4	%		12.4	%		9.4	%		6.4	%
Year		2006		23.9	%		23.3	%		22.2	%		20.0	%		17.9	%		15.7	%		13.5	%		11.4	%

- 41 -

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		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		(26.5	%)		(28.7	%)		(33.4	%)		(44.5	%)		(61.6	%)		(136.6	%)		(152.8	%)		(162.0	%)
Exit		2005		0.5	%		(0.6	%)		(2.8	%)		(7.3	%)		(12.1	%)		(17.4	%)		(23.4	%)		(30.7	%)
Year		2006		8.6	%		7.9	%		6.5	%		3.5	%		0.4	%		(2.8	%)		(6.1	%)		(9.8	%)

			Implied IRR at 6x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		(9.5	%)		(11.1	%)		(14.3	%)		(21.1	%)		(28.6	%)		(37.4	%)		(48.5	%)		(67.1	%)
Exit		2005		8.9	%		7.9	%		6.1	%		2.3	%		(1.5	%)		(5.6	%)		(9.8	%)		(14.4	%)
Year		2006		14.0	%		13.4	%		12.1	%		9.5	%		6.8	%		4.1	%		1.3	%		(1.6	%)

			Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		2.8	%		1.4	%		(1.3	%)		(6.8	%)		(12.5	%)		(18.5	%)		(25.1	%)		(32.4	%)
Exit		2005		15.7	%		14.8	%		13.2	%		9.8	%		6.4	%		3.0	%		(0.5	%)		(4.2	%)
Year		2006		18.5	%		17.9	%		16.7	%		14.3	%		11.9	%		9.5	%		7.1	%		4.6	%

			Implied IRR at 7x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		12.7	%		11.5	%		9.0	%		4.2	%		(0.8	%)		(5.8	%)		(11.0	%)		(16.4	%)
Exit		2005		21.4	%		20.7	%		19.1	%		16.0	%		12.9	%		9.8	%		6.7	%		3.5	%
Year		2006		22.4	%		21.9	%		20.7	%		18.5	%		16.3	%		14.0	%		11.8	%		9.6	%

- 42 -

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	%		21.1			5	%
Inherited Debt				0.0	%		115.9			28	%
High Yield Debt				10.0	%		0.0			0	%
Equity							147.7			36	%
Total						$	413.6			100	%
Initial Debt / Total Initial Book Capitalization							61	%

Adjusted Purchase Price
Per Share Purchase Price		48.50
Shares Outstanding (MM) (10/31/01)		5.3
Equity Purchase Price	$	257.7
Plus: Net Debt @ 10/31/01		17.2
Adjusted Purchase Price	$	274.9
Shares Already Owned by Buyer		147.7
Adjusted Equity Purchase Price	$	110.1

Uses
	Amt.		%
W/C Cash	$	24.2		6	%
Inherited Debt		115.9		28	%
Cash Paid to Seller		110.1		27	%
Financing Transaction Costs		0.7		0	%
Other Transaction Costs		15.0		4	%
Rolled Equity		147.7		36	%
Total	$	413.6		100	%

Write-Up/Goodwill
Equity Purchase Price	110.1
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)	—

- 43 -

Leveraged Buyout Analysis
DRAFT

IRR Analysis – Levy Group Equity Rolled – April Projections

			Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		4.7	%		4.0	%		2.7	%		0.0	%		(2.5	%)		(5.0	%)		(7.4	%)		(9.8	%)
Exit		2005		8.7	%		8.2	%		7.2	%		5.3	%		3.4	%		1.6	%		(0.2	%)		(2.0	%)
Year		2006		10.7	%		10.3	%		9.6	%		8.1	%		6.6	%		5.2	%		3.8	%		2.4	%

			Implied IRR at 6x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		10.6	%		9.9	%		8.6	%		6.0	%		3.5	%		1.1	%		(1.3	%)		(3.5	%)
Exit		2005		12.6	%		12.2	%		11.2	%		9.3	%		7.5	%		5.7	%		4.0	%		2.3	%
Year		2006		13.5	%		13.2	%		12.4	%		10.9	%		9.5	%		8.1	%		6.8	%		5.5	%

			Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		15.9	%		15.2	%		13.9	%		11.4	%		8.9	%		6.5	%		4.2	%		2.0	%
Exit		2005		16.2	%		15.7	%		14.8	%		12.9	%		11.1	%		9.4	%		7.7	%		6.0	%
Year		2006		16.1	%		15.7	%		15.0	%		13.5	%		12.1	%		10.8	%		9.5	%		8.2	%

			Implied IRR at 7x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		20.8	%		20.1	%		18.8	%		16.2	%		13.8	%		11.4	%		9.1	%		6.9	%
Exit		2005		19.5	%		19.0	%		18.0	%		16.2	%		14.4	%		12.7	%		11.0	%		9.4	%
Year		2006		18.5	%		18.1	%		17.4	%		15.9	%		14.6	%		13.2	%		11.9	%		10.7	%

- 44 -

Leveraged Buyout Analysis
DRAFT

IRR Analysis – Levy Group Equity Rolled – July Projections

			Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		(3.4	%)		(4.1	%)		(5.5	%)		(8.2	%)		(10.9	%)		(13.5	%)		(16.1	%)		(18.6	%)
Exit		2005		4.6	%		4.1	%		3.0	%		1.1	%		(0.9	%)		(2.8	%)		(4.7	%)		(6.5	%)
Year		2006		8.2	%		7.8	%		7.0	%		5.5	%		4.0	%		2.5	%		1.1	%		(0.3	%)

			Implied IRR at 6x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		2.9	%		2.2	%		0.8	%		(1.8	%)		(4.4	%)		(6.9	%)		(9.4	%)		(11.8	%)
Exit		2005		8.7	%		8.2	%		7.2	%		5.3	%		3.4	%		1.6	%		(0.2	%)		(1.9	%)
Year		2006		11.2	%		10.8	%		10.0	%		8.5	%		7.1	%		5.7	%		4.3	%		2.9	%

			Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		8.4	%		7.7	%		6.4	%		3.8	%		1.3	%		(1.2	%)		(3.5	%)		(5.8	%)
Exit		2005		12.4	%		12.0	%		11.0	%		9.1	%		7.3	%		5.5	%		3.7	%		2.1	%
Year		2006		13.9	%		13.5	%		12.7	%		11.3	%		9.9	%		8.5	%		7.1	%		5.8	%

			Implied IRR at 7x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		13.4	%		12.8	%		11.4	%		8.9	%		6.4	%		4.0	%		1.7	%		(0.6	%)
Exit		2005		15.8	%		15.3	%		14.4	%		12.5	%		10.7	%		9.0	%		7.3	%		5.6	%
Year		2006		16.3	%		16.0	%		15.2	%		13.8	%		12.4	%		11.0	%		9.7	%		8.4	%

- 45 -

Leveraged Buyout Analysis
DRAFT

IRR Analysis – Levy Group Equity Rolled – September Projections

			Implied IRR at 5.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		(8.8	%)		(9.6	%)		(11.0	%)		(13.8	%)		(16.6	%)		(19.4	%)		(22.1	%)		(24.8	%)
Exit		2005		2.6	%		2.1	%		1.1	%		(1.0	%)		(2.9	%)		(4.9	%)		(6.8	%)		(8.7	%)
Year		2006		6.9	%		6.5	%		5.7	%		4.1	%		2.6	%		1.1	%		(0.3	%)		(1.8	%)

			Implied IRR at 6x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		(2.1	%)		(2.8	%)		(4.2	%)		(6.9	%)		(9.6	%)		(12.1	%)		(14.7	%)		(17.2	%)
Exit		2005		7.0	%		6.5	%		5.5	%		3.5	%		1.6	%		(0.2	%)		(2.0	%)		(3.8	%)
Year		2006		10.0	%		9.6	%		8.8	%		7.3	%		5.9	%		4.4	%		3.0	%		1.7	%

			Implied IRR at 6.5x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		3.8	%		3.1	%		1.8	%		(0.9	%)		(3.4	%)		(5.9	%)		(8.3	%)		(10.7	%)
Exit		2005		10.9	%		10.4	%		9.4	%		7.5	%		5.7	%		3.9	%		2.1	%		0.4	%
Year		2006		12.8	%		12.4	%		11.7	%		10.2	%		8.8	%		7.4	%		6.0	%		4.7	%

			Implied IRR at 7x Exit Multiple, 2006 Exit Year
	Purchase Price		$	48.50		$	49.00		$	50.00		$	52.00		$	54.00		$	56.00		$	58.00		$	60.00
		2004		9.1	%		8.4	%		7.1	%		4.5	%		2.0	%		(0.4	%)		(2.8	%)		(5.1	%)
Exit		2005		14.4	%		13.9	%		13.0	%		11.1	%		9.3	%		7.5	%		5.8	%		4.1	%
Year		2006		15.4	%		15.0	%		14.2	%		12.8	%		11.4	%		10.0	%		8.7	%		7.4	%

- 46 -

DRAFT

Premiums Analysis

- 47 -

Premiums Analysis

DRAFT

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

-48-

Premiums Analysis

DRAFT

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 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

-49-

Premiums Analysis

DRAFT

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

-50-

DRAFT

Financial Projections

-51-

Financial Projections

DRAFT

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

     

-52-

Financial Projections

DRAFT

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.

-53-

Financial Projections

DRAFT

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

-54-

Financial Projections

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	%

-55-

Financial Projections

DRAFT

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.

-56-

Financial Projections

DRAFT

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.

-57-

Financial Projections

DRAFT

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.

-58-

Financial Projections

DRAFT

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.

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Financial Projections

DRAFT

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.

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Financial Projections

DRAFT

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.

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Financial Projections

DRAFT

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.

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Financial Projections

DRAFT

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.

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Financial Projections

DRAFT

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.

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DRAFT

Stock Price Performance

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Stock Price Performance

DRAFT

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.

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Stock Price Performance

DRAFT

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.

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Stock Price Performance

DRAFT

Stock Price and Volume History

• NCH’s stock has fallen significantly since hitting its 52-week high on April 27

1 3/07/01: NCH reported earnings for the quarter ended 1/31/01. EPS from continuing operations were $1.45 compared to $2.52 in the prior year.

2 6/01/01: NCH reported earnings for the fourth quarter ended 4/30/01. EPS from continuing operations were $5.65 for FY01 compared to $3.39 for FY00.

3 6/25/01: Standard & Poor’s announced that NCH would be removed from the S&P MidCap 400 Index for lack of representation.

4 8/28/01: NCH reported earnings for the fiscal quarter ended July 31. Diluted EPS for the quarter were $1.33 compared to $1.65 in the prior year.

5 10/01/01: NCH announced that its Chairman Irvin Levy, Lester Levy and other members of their family offered to buy the 43% of the Company they do not already own.

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Stock Price Performance

DRAFT

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

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Stock Price Performance

DRAFT

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.

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Stock Price Performance

DRAFT

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

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Stock Price Performance

DRAFT

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

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