1 + Extend Equipment LifeSimple Easy Obvious + Reduce Wear + Increase Reliability + Extend Equipment Life = REDUCED COST OF OWNERSHIP A Lifetime of Protection from a One Time Investment

2 Traditional Oil FiltrationStandard oil filters are comprised of: Metal canister Pleated paper filter element Holes for the oil to enter and exit Oil circulates through the filter: Enters along the walls of the canister Flows through the paper filter element Exits out the center

3 Traditional Oil FiltrationLubricating oil is very viscous The paper filter element must be very porous in order to provide high oil flow rates Standard filters have a porosity of microns (µm) Particles smaller than µm Pass through the paper filter Flow back into the engine Continue to circulate in the oil

4 Traditional Oil FiltrationSteel particles Principle particles created in an engine during normal wear Most are smaller than 20 µm Oil lubricates the moving parts Steel particles in the oil are trapped between the lubricated surfaces Particles cause grinding wear More wear creates more particles Cycle continues and wear increases

5 FilterMag® Breaks the Wear CycleSimply snap a FilterMag® on the outside of a standard oil filter FilterMag’s powerful rare earth magnets attract and hold particles that would normally pass through the paper filter The RESULTS are obvious

6 FilterMag® Breaks the Wear CycleThe black rectangles on the inside of this oil filter are particles captured by a FilterMag after only 100 hours of operation on an Isuzu 4800 truck. Most are less than 25µm Too small to be seen individually Millions of these wear causing particles align to form the outline of FilterMag’s powerful rare earth magnets

7 Inside of an oil filter from a John Deere farm tractorFilterMag® Breaks the Wear Cycle Removing most of the small wear causing particles can: Reduce engine wear up to 80%1 Increase reliability by 2 to 3 times2 Extend the life of lubricated parts up to 100%2 Inside of an oil filter from a John Deere farm tractor Non-invasive patented technology means: No loss of oil flow No loss of oil pressure Completely re-usable Slide off of the old filter Snap onto the new filter 1 - David R. Staley, General Motors Corp. "Correlating Lube Oil Filtration Efficiencies With Engine Wear" Society Of Automotive Engineers Paper Number , November 7, 1988 2 - Sayles, R.S. And Macpherson, P.B., “Influence of Wear Debris on Rolling Contact Fatigue” Rolling Contact Fatigue of Bearing Steels, J.J.C. Hoo, editor ASTM STP 771, ASTM 1982, pp

8 Easy Installation… 1 2 3 No tools needed No training requiredNo effect on equipment warranty 1 2 3

9 Simple Size Selection 5 CT products for spin-on filtersSelect by the diameter of the filter 9

10 Simple Size Selection 5 CT products for spin-on filtersSelect by the diameter of the filter CT 9.0 for large fixed canister filters 10

11 Gear Boxes & DifferentialsSimple Size Selection 5 CT products for spin-on filters Select by the diameter of the filter CT9.0 for large fixed canister filters Specialty products CTF 2.5 Fits Inside Gear Boxes & Differentials CTF 5.0 Transmissions 11

12 Contamination Control System Our Patented FundamentalsPARABOLIC FLUX FOCUS Orients magnetic flux into center of filter Housing made of DuPontTM Zytel® High temperature tolerance -100ºF to +300ºF. EXTREME RARE EARTH MAGNETS Provides tractive force to remove particles from fluids under very harsh conditions: Fluid temperatures to 300°F Fluid pressures commonly 80 to 120psi. Up to 20,000psi for hydraulics Flow rates up to 2,000 gallons/minute FLUX AMPLIFIER & SHIELDING Redirects flux from exiting back of system to supplementing filter side of system Shielding STOPS ALL FLUX from exiting back of system and into engine compartment So effective a paperclip won’t stick to the exterior for the system Vehicle electronics stay safe

13 Don’t Just Take Our Word . . . Summary: SAE FindingsSpark Plugs Don’t Just Take Our Word Summary: SAE Findings Lube oil contamination primary cause of engine wear Wear was reduced by as 70% by going from 40µm to 15µm filter No discernable wear on fuel injectors after 19,000 miles of commercial service by filtering to 2 µm Particles 0-10µm cause 3.5X more wear than those >10µm “The significance of proliferating particles in the 10µm size domain is phenomenal.” SAE papers: , ,

14 FilterMag Works On Practically All Vehicles & EquipmentOff-road heavy equipment All sizes & types of trucks Engines, pumps, and compressors Generators, & marine vessels.

15 Completely Non-invasive Contamination ControlContamination Control without ANY changes in: Fluid flow paths Fluid pressures Fluid flow rates No re-plumbing of manufacturer’s: Engine oil systems Hydraulic systems NO warranty impact Cut open filter from a diesel engine after 800 hours operation

16 Diesel Fuel FiltrationCustomer’s photo of a secondary diesel fuel filter after just 5,000 miles Note the iron oxide particles missed by the primary fuel filter and trapped on the canister wall by the attached FilterMag® Diesel fuel is often contaminated with water Water can create rust in the fuel system Rust particles (iron oxide) may pass through a fuel filter Rust particles cause unnecessary wear to the fuel pump and fuel injectors FilterMag® can capture the rust particles that ordinary filters miss 16

17 Diesel Fuel FiltrationExtending the life of a fuel injection system will pay for the investment in FilterMag Fuel only passes through the filter one time Using 2 FilterMags in tandem is recommended for optimum results Diesel fuel is often contaminated with water Water can create rust in the fuel system Rust particles (iron oxide) may pass through a fuel filter Rust particles cause unnecessary wear to the fuel pump and fuel injectors FilterMag® can capture the rust particles that ordinary filters miss 17

18 Hydraulic Fluid FiltrationA pair of CTR 8.0 magnets will fit many heavy equipment hydraulic tanks Other sizes are available Custom sizes upon request Normal wear in hydraulic systems creates microscopic steel particles in the hydraulic fluid When recirculated, these particles shorten the life of seals, valves and pumps thus reducing reliability FilterMag® CTR products insert into hydraulic fluid reservoir tanks to capture the particles Typically mounted to filler caps for ease of removal and cleaning

19 Hydraulic Fluid Filtration40 ton forklift at the Port of Los Angeles CTR used in the hydraulic reservoir tank Millions of microscopic steel particles captured by the magnets of the CTR Simply wipe off and place back into the tank (< 5 min) No tools required FilterMag® CT magnets may also be used with spin-on hydraulic filters Cheap insurance for very expensive hydraulic systems 19

20 Kidney Loop Application20

21 Reduce Wear, Increase Reliability & Extend Equipment LifeFilterMag works with full flow oil, hydraulic & fuel filtration Value based filtration removes particles ≥40 microns Premium filtration removes particles ≥ 25 microns FilterMag assisted filtration removes ferrous particle ≥ 1 micron Preserve higher quality (TBN) of oil during operation Reduce risk of failure Engine Fuel systems Hydraulic systems

22 MacPherson Graph

23 Noria Chart Machinery Lubrication “The Importance of ISO Cleanliness Codes”

24 What about particles that aren’t magnetic?Non-ferrous particles become positively charged while in magnetic field Metals: Copper, Aluminum, Chromium, Sodium Others: soot, silicates, Boron, Calcium Positively charged particles attracted & held to negatively charged inner wall of oil filter

25 The FilterMag® PromiseReduce Wear Increase Reliability Extend Equipment Life in Most equipment with an oil filter Diesel fuel systems Hydraulic systems Transmissions, Differentials & Gear Boxes

26 For further information please contact: Merlin Equipment Pte Ltd Tel: