PGI Historical Financial Performance

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PORTEC GROUP INTERNATIONAL INVESTMENT MEMORANDUM HISTORICAL FINANCIAL PERFORMANCE PGI CONSOLIDATED - On a consolidated basis, Portec Group has exhibited steady revenue trends and improving EBITDA margins since 2001. The below chart summarizes the Company’s historical financial performance. Historical Portec Gropp International B 2002 2003 Net Revenue $39,602 $40,043 $37,386 $42,554 Variable Costs $24,043 $24,036 $22,153 $25,541 Variahle Costs as a % of Revenues 60.7% 60.0% 59.3% 60.0% Variable Margin $15,559 $16,005 $15,233 817,013 Variable Percent 39.3% 40.0% 40.7% +40.0% Fixed Costs $3,647 $3,537 $3,746 $3,797 Fixed Costs as a % of Revenues 9.2% 8.8% 10.0% 8.9% Gross Profit 311,912 $12,468 $11,487 $13,216 | Gross Margin 30.1% 31.1% 30.7% 31.1%] SG&A Expenses $5,797 $5,873 $4,966 $5,947 SG&A Margin 14.6% 14.7% 13.3% 14.0% EBITDA $6,115 $6,595 $6,522 $7,270 EBITDA Margin 15.4% 16.5% 17.4% 17.1%] Adjusted EBITDA $6,115 $6,828 §5,974 $7,138 | Adjusted EBITDA Margin 15.4% 17.1% 16.0% 16 8% Capital Expenditures $258 $572 §722 3656 Revenue — From 2001 to 2004, revenue increased from $39.6 million to $42.5 million, a CAGR of 2.4%. Revenue from the Company’s Flomaster division has been strong, increasing from $17.1 million in 2001 to $23.2 million in 2004. Over the same time period, revenue from the Company’s Wemer division increased from $7.2 million to $9.4 million. Revenue from the Company’s JRI division offset this growth, declining from $15.3 million in 2001 to $9.9 million in 2004. ’ Gross Profit — From 2001 to 2004, gross margins remained between 30%-31%. Gross margins were positively impacted by strong growth in the Company’s airport end market, increasing service parts sales (higher margin than the Werner and JRI businesses) and leverage in the Company’s fixed costs. Increasing steel prices and pricing pressure in the Company’s Werner and JRI end markets offset this benefit. EBITDA — From 2001 to 2004, EBITDA grew from $6.1 million to $7.3 million, a CAGR of 5.9%. Over the same time period EBITDA margins increased from 15.4% to 17.1%. These improvements were driven by an increase in the Company’s mix of Portec business (higher margin) and significant fixed cost leverage (fixed and SG&A costs remained relatively flat despite revenue growth). Capital Expenditures — From 2001 to 2004, the Company’s capital expenditures averaged $552k per year. Over the same time period, the Company’s JRI division accounted for 65.7% of total capital expenditures. In 2004, the Portec’s Flomaster and Werner division combined for $7.0 million in EBITDA and $6.8 million in free cash flow. PAGE 16 ® PNCEQUITYMANAGEMENT

PORTEC GROUP INTERNATIONAL INVESTMENT MEMORANDUM FLOWMASTER — The chart below details Portec Flomasters historical financial performance. Flomaster Net Revenue $23,179 Revenue Growth na (1.9%) 13.6% 21.9% Variable Costs. $8.602 $8,306 $9,366 $11,627 Variable Costs as a % of Revenues 50.4% 49.6% “9.3% 50.2% Fixed Costs §1,986 $1,528 $i.611 51,556 Fixed Costs as a % of Revenues 9.3% 2.1% 8.5% 6.7% [Gross Profit $6.875 $6,898 $8,032 $9,996 Gross Margin 40.3% 41.2% #2.3% 43.1% SG&A Expenses $3.637 $3,541 $3,159 $3,566 [SG a4 Margin 24.3% 21.0% 16.6% 15,49 EBITDA $3,238 $3,388 $4,873 $6,430 EBITDA Murgin 19.0% 20.2% 25.6% 27.7% Adjusted EBITDA $3,238 $3,461 $4,627 $6,348 Adjusted EBITDA Margin 19.0% 20.7% 24.3% 27.4% Capital iture: $38 $142 $70 $109 Revenue — From 2001 to 2004, revenue increased from $17.1million to $23.2 million, a CAGR of 10.7%. Strong demand in the Company’s airport end market and growing service parts sales drove these increases. Airport end market revenues increased from $6.9 million in 2003 to $11.2 in 2004, accounting for the majority of Flomaster’s total revenue growth. Over the same time period, service parts sales grew from $4.9 million to $5.3 million. In 2004, Flomaster accounted for 54.5% of the combined Company’s revenue. Gross Profit — Despite the impact of rising steel prices (negative $164k impact in 2004), Flomaster has improved its gross margins by leveraging the Company’s fixed costs. Offsetting this gain, the Company’s mix of airport business has increased (airport end market typically carries lower gross margins than other segments of the Portec business). EBITDA ~ From 2001 to 2004, EBITDA increased from $3.2 million to $6.4 million. The majority of this growth was driven by strong demand in Flomaster’s airport end market coupled with increasing service parts sales. The Company has improved its EBITDA margins by effectively leveraging its fixed and SG&A costs. In 2004, Flomaster accounted for 88.9% of the combined Company’s EBITDA. Capital Expenditures — From 2001 to 2004, Flomaster’s capital expenditures averaged $90k per year. In 2004, Flomaster generated over $6.3 million in free cash flow. WERNER — The chart below details Werner’s historical financial performance. 2001 3 2004 Werner Net Rovenue $7,244 $6,600 $7,464 89,429 Revenue Growth nia 18.7% (13.29%) 26.3% Variabie Costs $5,032 $5,723 $5,057 56,843 Variable Costs as a % of Revenues 69.5% 66.6% 67.7% 72.6% Fixed Costs $772 $772 $502 945 Fixed Costs as a % of Revenues 10.7% 2.0% 12.1% 16.0% Gross Profit $1,440 $2,104 $1,506 $1,641 (Fross Margin 19.9% 24.5% 20.2%5 17.4% SG&A Expenses 5966 $1,098 $924 $1,105 G Margin 13.3% 12.8% 12.4% 11.7% [EBITDA $474 $1,006 $582 $536 |[EBITDA Margin 6.5% 11.7% 7.8% 5.7% Adjusted EBITDA $474 $1.006 $556 $462 | Adjusted EBITDA Margin 6.5% 1L.7% 7.5% +4.9% Capital Expenditures $166 $122 $76 $34 Revenue ~ From 2001 to 2004, revenue increased from $7.2 million to $9.4 million, a CAGR of 9.2%. In FY04 Werner secured a sole-source contract with Royston, a manufacturer of checkout counters for big box retailers PAGE 17 @ PNCEQUITYMANAGEMENT

PORTEC GROUP INTERNATIONAL INVESTMENT MEMORANDUM (Werner provides motorized pulleys). Royston recently acquired several competitors to become the largest checkout counter provider in the North American marketplace. Royston awarded all of its incremental business to Werner. In 2004, Werner accounted for 22.2% of the combined Company’s revenue. Gross Profit — From 2001 to 2004 gross margins declined from 19.9% to 17.4%. At the beginning of 2004 Werner entered into oral fixed pricing arrangements with key customers. As a result, the Company has not been able to pass on increasing steel costs. The FY04 impact of increased steel costs was approximately $335k. EBITDA — From 2001 to 2004, EBITDA increased from $474k to $536k. Strong unit volumes (especially in 2004) drove EBITDA growth, but was partially offset by higher steel prices and Canadian currency appreciation relative to the US dollar. Werner sells product in US dollars and pays expenses in Canadian dollars. In 2004, the Canadian dollar appreciated 7%, which resulted in a negative impact of $350k. The total impact of steel price increases and the currency appreciation impacted the business by $685k in 2004. Werner accounted for 6.5% of the combined Company’s EBITDA in 2004. Capital Expenditures — From 2001 to 2004, Werner’s capital expenditures averaged $90k per year. In 2004, Werner generated approximately $500k in free cash flow. JRI - The chart below details JRI's historical financial performance. 3 IRI Net Revenue $15,295 $14,709 $10,912 $9,946 Revertie Growth we (3.8%) (25.8%) (8.9%) Variable Costs $10,409 $10,007 7,730 $7,071 Variable Costs as a % of Revenues 68.1% 68.0% 70.8% 71.1% Fixed Costs 1,289 $1,237 1,233 1,296 Fixcd Cosls as a %6 of Revennes 8.4% 8.4% 11.3% 13.0% Gross Profit 53,596 $3,465 81,949 1,579 Gross Margin 23.5% 23.6% 17.9% 15.9% 5Gé.A Expenses $1,194 $1,264 883 $1,276 SG&A Margin 7.8% 86% 8% 12.8% EBITDA $2,402 $2,202 $1,066 $303 [EBITDA Margin 15.7% 15.0% 9.8% 3.0% Adjusted EBITDA $2,402 $2,362 $790 $327 | Adjusted ERITDA Margin 15.7% 16.1% 7.2% 3.3% Capital Expenditures $54 $307 8576 $513 Revenue — From 2001 to 2004, revenue decreased from $15.3 million to $9.9 million. This trend was driven by a significant decline in sale of treadmill rollers ($9.5 million in FY01 versus $3.7 million in FY04). Many of the Company’s clients have moved production of these products in house or are sourcing them overseas. In 2004, JRI accounted for 23.4% of the combined Company’s revenue. Gross Profit ~ From 2001 to 2004 gross margins declined from 23.5% to 15.9%. Rising steel prices have been absorbed by JRI and have not been passed on to the majority of its customers. The FY04 impact of these cost increases is approximately $760k. EBITDA — From 2001 to 2004, EBITDA decreased from $2.4 million to $303k. This rapid decline was driven by the loss of the majority of the Company’s retail treadmill roller business. In addition, JRI’s remaining treadmill roller business has experienced severe pricing pressure. As revenue has declined the Company has been unable to cover its fixed costs as effectively leading to reduced margins. In 2004, JRI accounted for 4.6% of the combined Company’s EBITDA. Capital Expenditures — From 2001 to 2004, JRI’s capital expenditures averaged $363k per year. In 2004, JRI generated negative $210k in free cash flow. The bulk of JRI’s 2004 capital expenditures were related to the start-up of the Company’s bat business. PAGE 18 @ PNCEQUITYMANAGEMENT

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