15 KENNAMETAL INC.  / AR 2002 Competitive Advantages Competitive Advantages Exciting New Products and Technologies Competitive Advantages Exciting New Services  Competitive Advantages Exciting New Products and Technologies Exciting New Products and Technologies The broadest product offering in the industry with a focus on tooling solutions supported by the most  highly trained and technically oriented sales force.  The Advanced Engineering Group provides engineered solutions for the highly specialized requirements of the automotive, aerospace and heavy off-road equipment industries. First to market breakthrough solutions such  as KM Micro tooling which is delivering record set-up cost reductions to the Swiss machining industry.  KM Micro – Revolutionary quick-change tooling breakthrough in Swiss style machining industry. The KC9110 and KC9125 grades are setting the  new global industry standard for turning steels. A4 Groove-Turn Tooling, KSSM face mills, solid  carbide end mills, NGE (inserted) end mills,  High-Temp Program, Fix-Perfect Cast Iron  Program, and Fix-Perfect Aluminum Program. Value-added solutions provided to improve customers’ competitiveness. Experts in powder metallurgy and manufacture/application of cemented tungsten carbide and other hard materials. Extensive application knowledge and thorough understanding of wide range of industrial processes involving cutting, wear, corrosion, mechanical shock, thermal shock and compressive strength. Trained field experts offer job site productivity consulting.  Seeks to continually broaden product and customer  base through new products, new processes and new material solutions, including investments and partner- ships with early stage companies, with strategic customers and acquisitions of established enterprises. Recent product introductions include center feed disks for the aggregates industry and seal rings for concrete pumps. Fast quote turnarounds, focused and flexible manu- facturing units, rapid proto-typing, event analysis, application engineering and joint R&D services. Products incorporating leading technology delivered on time with superior quality. Major manufacturing plants certified under ISO9001 & ISO9002 global quality standards.  Only national catalog distributor with pure metalworking focus. Best-in-class catalog contains broad, deep offering featuring best brands and supported by state-of-the-art call center technology. Product savvy customer service representatives and the best technical support in the industry are key advantages versus MRO catalog distributors. Nationwide next day delivery at ground  rates and extended ordering hours.  Throughout the United States, customer orders placed between 7 a.m. – 8 p.m. EST ship the same day for next day delivery at no additional cost. Uniquely positioned to deliver not only leading supply chain management processes, but best-in-class technical application expertise. Strength in technical application, which originated from Kennametal’s core competencies in that area, combined with robust and proven cost savings methodology, permits FSS to be recognized as the leader in cost savings generation in the industry. Brought numerous advances in supply chain manage- ment techniques to Integrated Supply market since  1988 inception. In addition to now widely accepted electronic kanban and automated supply dispensing systems, FSS offers new solutions based on Internet connectivity and e-commerce platforms. Continues  to make significant investments in developing new streamlining technologies.