RTR ROTORS & DRUMS SUPPLIED BY: REPRESENTED BY:

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1 RTR ROTORS & DRUMS SUPPLIED BY:. REPRESENTED BY:

2 .RTR ROTORS & DRUMS Supplied By Key To Quality: Consistency In Business Since 1967 Three Warehouse Locations Great Fill Rates Over $15,000,000 in Inventory All Product Made to IAP Design Specifications Global Sourcing From Proven Quality Suppliers All 6 Primary Suppliers Are ISO9000/QS9002 Approved HIGH QUALITY GREAT PRICES. RTR QUALITY ROTORS & DRUMS

3 .RTR ROTORS & DRUMS Supplied By Consistent Quality Finished and Balanced Ready to Install 98% Non-Directional Swirl Finish Continual Testing At Factory & DC: Metallurgical Composition Run-out Balance Parallelism RTR QUALITY ROTORS & DRUMS

4 Quality ROTORS & DRUMS PRODUCT QUALITY REPORT RTR QUALITY ROTORS & DRUMS

5 IAP DURA STRATEGY FOR QUALITY IAP DURA has been importing automotive parts into the United States since For the last 25 years, this second generation family owned business has focused their efforts on supplying the automotive aftermarket with highest quality import drums and rotors. These efforts have placed IAP in a leadership role as the number one supplier of import drums and rotors to the US aftermarket. To assure they reached and continue to maintain this leadership position in the market, IAP implemented the strategy recapped below. Product Manufacturing: IAP s quality product starts with the selection of the proper manufacturing facility. Our main objective is to partner with the factories that excel in the production of specific applications. Through the years, IAP has identified which factory s manufacturing expertise lies in the production of flat rotors, hub rotors, ABS applications or drums. These factories as assigned either a primary or secondary supplier status for an individual SKU. IAP criteria for consideration of a manufacturing facility are: 1) Must have ISO 9000 and QS9002 or higher certification. 2) Perspective and current factories must allow inspection of plants by IAP staff as requested. IAP personnel visit each location a minimum of once annually. 3) Selected factories are required to test the metallurgy of each batch (pour) and verify of weight of each finished unit. 4) In 2002, IAP contracted for third party quality team to conduct control tests on a 5% sampling of product produce at each factory prior to packing. The battery of tests completed by this team minimizes the disruption of supply that could occur when defective product is detected state side. Additionally, we have found this process eliminates disputes with the factory regarding the nature of the defect and allows for immediate correction of manufacturing issues. a. When this program was first initiated the rejection rate of product in our US warehouses was over 2%. Our current rejection rate is now less than one-tenth of a percent. This program has also lead to IAP dissolved relationships with two previously approved factories because their quality failed keep pace with IAP standards. RTR QUALITY ROTORS & DRUMS

6 5) The factory must certify their quality control processes. IAP personnel confirm adherence to these processes. 6) IAP implemented an aggressive vendor reward and penalty system which keenly focuses the factories attention on quality control. Product Management: IAP product management team in the United States is responsible for the identification, development and quality control of our new and current product offering. 1) Product team identifies new products opportunities based upon the introduction of new vehicle applications and the needs of US automotive aftermarket. 2) Product specifications are developed based upon OE designs and requirements. a. Our requirements and specifications are forward to those factories that approved for manufacture of the specific type of product to be produced. b. These factories are required to provide engineering and manufacturing drawings, along with samples of each application back to IAP for testing and approval. After review and testing of plans and product a manufacturing locations is approved and order placed. Product Quality Assurance: 1) Product team assures our 3 rd party quality control team is in place and completing required testing at the factory. 2) Once product is received at our US warehouse, we select a random sampling of product for in-house testing. This sampling provides us with a statistical validity of product quality. Each unit evaluated is subject to a minimum of nine separate tests. a. Results of these tests are that nearly 40% of the units rejected by IAP were due to unit being under our required weight. For that reason this is our first test; if the samples fail this test the entire pallet is immediately rejected. b. All critical dimensions and surfaces are then measured and evaluated to product standards. 3) NO product is ever repaired or refurbished. IAP consciously chose to NEVER alter product supplied by its factory. RTR QUALITY ROTORS & DRUMS

7 Quality ROTORS & DRUMS Product Manufacturing - Identify Manufacturing Facility With Expertise to Assure Highest Quality Available - Currently Doing Business With 6 Different Plants - All Business ISO9001 (or higher) Certified. Samples attached. RTR QUALITY ROTORS & DRUMS

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10 Quality ROTORS & DRUMS Product Management - Identify New Model Opportunities - Review O.E. Brake Specifications - Development of Manufacturing Specifications RTR QUALITY ROTORS & DRUMS

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14 Quality ROTORS & DRUMS Product Quality Assurance - All Products Are Batch Test Prior To Leaving Factory. - All Products Are Batch Tested Upon Arrival In United States. Must Pass At Least 9 Test Specifications. (Sample Test Reports Attached) - Extensive Product Testing Completed As Needed To Ensure Manufacturing Requirements Are Met. (Test Samples Attached) RTR QUALITY ROTORS & DRUMS

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