M W International Inc.

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M / W International Inc.
MillsWall FC-300 Movable Walls Integrated With
MillsWalls Genesis Stackable Workstations
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M/W International Inc.

• FC-300 Monobloc Construction, 60mm thick, (2
  3/8)
• Fully movable,Non-Progressive, Non-destructive
  Fastening.
• Genesis Stackable / Segmented 82mm thick, (3 ¼)
• Stackable,Removable Tiles, Non- Progressive,
  Non-destructive Fastening

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M/W International Inc.

• Company overview
• Founded in 1921, Present Ownership Established in
  August 1996
• High Quality, Low Cost Producer
• State of the Art Computerized Design Production
  Equipment
• Unique, Custom Designed Products to Integrate
  With Stackable Furniture.

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M/W International Inc.

• About M/W International
• Professional support staff nearing 11 year
  anniversary.
• 2,000 Square Foot Working Show room complete and
  fully functional
• Website in place for enhanced productivity,
  communications and team interaction.

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M/W International Inc.

• We have an established base business with Fortune
  100 companies such as Pepsico, Motorola, Rohm
  Haas, Merrill Lynch, Library of Congress
• GSA contract, GS29F0033J
• Customers include Architect of the Capitol, Dept.
  of State, FBI, Army Corps of Engineers, US House
  of Representatives, Sparkman, Bolling AFB

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M/W International Inc.

• Founder Joseph R. Bucalo
• 35 Years of Combined Industry Experience
• Experience Sales, Sales Management, Marketing,
  Product Design and Corporate/Product Planning.
• Developed Plan and Team That Turned Around the
  Mills Company/Maars BV of the Netherlands
• Took Mills Wall Independent in August 1996

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M/W International Inc.

• Mission Statement
• The mission of M/W International, Inc. is to
  build and install full height movable wall
  products, integrated with interior office
  furniture, creating work efficient environments
  that are directly competitive with drywall
  construction for commercial interiors.

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M/W International Inc.

• Vision
• To provide complete environmental solution for
  knowledge intense workers

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M/W International Inc.

• Production delivery
• State of art on-line parts assembly drawings
• Computerized bills of material and order
  generation
• Low cost production
• Sales per employee above industry average
• Highly automated production process
• Direct network sales distribution strategy
• Quick ship lead times on layout materials
• Completed orders shipped in 8-14 weeks
• Intense Website marketing strategy

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M/W International Inc.

• Trends
• Opportunity Economy record low interest rates
• Investment in Technology
• Fewer People Do More Work
• Reduction in Space Allotment
• Increased Corporate Churn Rate
• Team Concept Development
• Long Term Facility Management

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M/W International Inc.

• Opportunity Economy
• Intense Growing Global Competition
• Corporate Right-sizing
• Increased Productivity
• Industry Consolidation

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M/W International Inc.

• Features and Benefits for FC300
• Highest Quality Wall System
• Modular Power Distribution
• Universal Connecting Hardware
• Cable Management and Bend Radius Control,
  Category 6 Compliant

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M/W International Inc.

• Corporate Churn Rate
• According to the IFMA, the Average Corporate
  Relocation Rate is 40 to 50 yearly

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M/W International Inc.

• Increased Use of Flexible Systems Walls
• Systems Lead the Way Movable Walls are
  depreciated as furniture! (7 yrs)
• Drywall depreciates over 15 years

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M/W International Inc.

• Return on Investment
• Movable Walls can be depreciated as personal
  property over 7 years
• IRS Section 179 Is a capital improvement clause
  that will allow you to have a deduction up to
  125,000 the first year.
• Drywall is depreciated over 15 years and does not
  have Section 179

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M/W International Inc.

• Example 50 Offices
• 1750 LF movable walls at 225/LF 393,750.00
• 1750 LF drywall at 140/LF 245,000.00
• Depreciation for movable walls 7 years with 46
  deduction in the first year
• Depreciation for drywall 15 years with maximum
  6.67 deductible the first year.
• Assumes using Section 179 and 7 year accelerated
  depreciation using mid year convention

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M/W International Inc.

• Yearly deductions for movable wall
• Net purchase
• 181,250.00
• 56,250.00
• 56,250.00
• 56,250.00
• 56,250.00
• 56,250.00
• 56,250.00

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M/W International Inc.

• Allowable first year deduction for 393,750 of
  movable walls 181,250
• Maximum first year deduction for 245,000 of
  drywall 16,333.33
• Tax advantages in the first year modifies the
  cost by 103.57 per linear foot for movable walls
  and 9.33 per linear foot for drywall.
• Note
• Example in general. Consult your tax accountant
  for specifics.

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M/W International Inc.

• After 1 year the effective cost of movable walls
  is
• 121.43/LF (225-103.57)
• After 1 year the maximum effective cost of
  drywall is 130.67/LF(140-9.33)

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M/W International Inc.

• Assumptions
• Assume move, adds or change rate of 40 40 or
  20 offices / 700 linear feet
•   1. Drywall / Sheet rock Construction
• 27 20,500 Tear down and disposal
• 60 58,000 Labor / New product
• 13 12,740 Materials / Straight walls
• 92,040
•  
• 131.48 per linear foot
• 700 linear feet
• 100 92,036 Total Change Costs
•  
• BIFMA Statistics Indicate rate of 44

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M/W International Inc.

• 2. M-Wall FC-300
• 35 8,000 Labor take down
• 60 15,000 Labor Re-erect
• 5 1,100 Materials ( assumes
  loss)
• 23,100
• 33 per linear foot
• 700 linear feet
• 100 23,100 Total Change Costs
•   Cost of Change Differences
• 1. 131.48/ lf Dry Wall 92,040
• 2. 33 / lf M-Wall FC-300 23,100
• 98.48 / lf Cost Differences 68,936
•  
• M-Wall FC-300 cost of change is 1/4 of
  Drywall
• 23,100 vs. 92,040
•  

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M/W International Inc.

• INSTALLATION PROCESS
• Three Easy Steps
• Step One Layout
• Plumb lines dropped from ceiling track locate
  door openings and corner locations. Chalk lines
  facilitate placement of the centerline of panels.

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M/W International Inc.

• INSTALLATION PROCESS
• Three Easy Steps
• Step Two Panel Stand Up
• Screw levelers and floor channel, facilitate
  easy panel stand up and leveling to plumb.

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M/W International Inc.

• INSTALLATION PROCESS
• Three Easy Steps
• Step Three Button Down
• After panel-to-panel connector strips are
  applied, power cabling is installed in base and
  through wire drops at each panel joint.

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M/W International Inc.

• Price Comparison- 10 X 10 Office / 40 Linear
  Feet
• Movable wall
• Base Electric and Data Raceway All Panels
• Wall Supported Furniture Capability
• Baked Enamel Wall and Trim
• Wood Doors / Commercial Grade Latchset
• Materials only / without Freight

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M/W International Inc.
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M/W International Inc.

• F Height Movable Walls
• (1) Steelcase 360/LF
• (2) SMED (Haworth) 495/LF
• (1) ACME 495/LF
• (1) Dowcraft (Inscape) 330/LF
• (2) K.I. 330/LF
• (1) FC300 225/LF
• (1) All Steel Construction
• (2) Sheetrock (Gypsum) Construction
• Price includes doors, frames and all layout
  material

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M/W International Inc.

• Systems Furniture
• Office 10 x 10
• Fabric clad steel wall
• Electric in baseline
• Laminate door
• Standard door, commercial grade hardware US26D
  finish

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M/W International Inc.

• Systems Furniture 83 High w/door and Baseline
  Electric
• HM Ethospace 7,055
• Steelcase Pathways 6,859
• Knoll Morrison 6,762
• Teknikon TOS 6,471
• Hon Terrace 6,130
• Haworth Premise 5,838
• Genesis 4,865
• Actual, others estimated on latest available
  information

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M/W International Inc.

• Marketing Support
• Architectural Binder
• Suitcase Samples
• Satisfied Customer Site Visits/ Dealer Displays
• Sales Support
• Customer Mockups
• Advertising
• Sales Leads
• Architect and Designer Consultant Program
• Website Access

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M/W International Inc.

• Strategic Alliance, FC300 with Genesis Inc.
• Seamless integration of office partitions and
  workstation furniture

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M/W International Inc.

• Genesis Segmented Tile Stackable Wall Product
• Provides Interconnection in the Horizontal
  Cabling between Work Area and Telecom Closet
• Makes Future Cabling Reconfiguration Easy
• Provides User with Flexibility and Easy
  Administration of Additions, Moves and Changes
• Quick and Easy Systematic Expansion
• Readily Removable Tiles With Pre Punched Ports
  That Provide Easy Access to Built in Cable
  Pathways and Interconnections

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M/W International Inc.

• Recap
• 1. 7 yr write off and IRS Section 179
• 2. Capital Investment
• 3. 250 Increase in Efficiency
• 4. 100 Reusable
• 5. Integrates systems furniture and plug and
  play electrical distribution system
• 6. Long Term Facility Management
• Many clients have used our product for decades

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M/W International Inc.

• Department of the Interior
• In 1935 purchased about 6700 linear feet of our
  product known as Mainliner
• That product is still in use today and is still
  under warranty
• They have not, at this time, had to use the
  warranty