The world of corporate mergers and

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1 FIRST QUARTER Oakdale Road Oakdale, PA Phone: (412) Fax: (412) Expanding Globally to Enhance Customer Service Acquisition of Oldham S.A. delivers expanded capabilities, strengthened commitment The world of corporate mergers and acquisitions all too often involves a hostile takeover, a massive workforce reduction, and sacrificing customer service to maximize shareholder value. That scenario stands in sharp contrast to the current state of Industrial Scientific since it acquired Oldham, S.A. of France from 3i Group PLC on May 12. As separate companies, each was an innovative leader in its respective market. Combined, the companies complement each other perfectly through the integration of their product lines and geographical markets served. Employees have also embraced a spirit of cooperation and enthusiasm for learning from their corporate counterparts and applying those concepts for the benefit of customers. Immediately following the acquisition, Industrial Scientific Corporation announced a number of changes to its corporate structure. The Corporation formed three operating divisions to more effectively serve customers in every corner of the world. Justin McElhattan, as President of Industrial Scientific Americas, has general Our Promise: Highest Quality Products Best Customer Service Our Commitment: 100% Focus on Gas Detection Industrial Scientific Operating Divisions and Headquarters Locations Industrial Scientifi c Americas Oakdale, PA, USA Industrial Scientifi c Asia-Pacifi c Shanghai, China Industrial Scientifi c Europe Arras, France management responsibilities of the Company s business in North and South America. Industrial Scientific corporate headquarters will remain in Oakdale, PA, USA. As President of Industrial Scientific Asia-Pacific, Dr. Annie Q. Wang is overseeing the Company s business in the Asia Pacific region. She is also directly responsible for all sales and service, manufacturing, engineering, and support functions based in Shanghai, China; Sydney, Australia; and Singapore. The third operating division is headed by Jean-Marc Santraine, President of Industrial Scientific Europe. Jean-Marc is responsible for leading the Company s business in Europe, the Middle East and Africa. Jean-Marc is directly responsible for all sales and service, manufacturing, engineering, and support functions based in Arras, France; Dortmund, Germany; and Breda, The Netherlands. Under this new corporate structure, the three divisional Presidents report directly to Kent McElhattan, Chairman and CEO of Industrial Scientific Corporation. We are delighted to welcome the people and customers of Oldham to Industrial Scientific, McElhattan said. We share remarkably similar backgrounds and cultures. Both companies are uncompromising in their commitment to deliver the highest quality products and best services to customers. Both are also committed to identifying Continued on page 6 INSIDE New Service Centers Opened 2 New Product News 4-5 inet Simplifies Gas Detection 7

2 Edmonton and Houston Service Centers Provide Local Support for Growing Number of inet Customers Two new service centers are now open to support the inet Instrument Network service program in Edmonton, Alberta, Canada and Houston, Texas, USA. inet provides a total-costof-ownership program to eliminate the most cost-intensive and time-consuming tasks involved in managing a gas monitor fleet. There are now over 8,700 instruments in the inet program at over 230 facilities around the world. With new accounts being added weekly, the new centers add local service capabilities in areas with a large number of inet customers and/or the potential for inet growth. This allows inet customers to further customize the program to meet their needs and enables Industrial Scientific to provide the best customer service. Edmonton, Alberta, Canada The new Industrial Scientific service center in Edmonton, Alberta provides a solid support structure for the expansion of inet throughout Canada. The inet Monitoring Service effectively allows customers to outsource management of their entire gas detection fleet to the industry expert Industrial Scientific. Edmonton Service Center Industrial Scientifi c Canada The inet service Unit 1A, 153 Pembina Road is grounded in the Sherwood Park, Alberta, T8H 0B9 unique combination of three indus- Canada try best practices Phone: DETECTS or (780) to deliver extraordinary simplicity Fax: (780) and value. First, inet automates many tasks associated with operating a gas monitor fleet including instrument calibration, function testing, diagnostics, documentation and repair or replacement of an instrument if a problem occurs. Second, inet allows users to focus on their core competency by freeing them from the hassles of administering a gas detection program. Third, standardizing equipment and processes improves safety and lowers costs by minimizing variations in practices and documentation. inet customers in Canada will benefit from these best practices by eliminating downtime, streamlining instrument fleets and lowering costs. inet also provides peace of mind by shifting the responsibility of managing and servicing gas detection programs to Industrial Scientific the industry experts that are focused 100 percent on gas detection. 2 Houston, Texas, USA The new Houston-area service center will support Industrial Scientific s growth in that region as well as the explosive growth in the number of area customers participating in the inet Instrument Network program. Industrial Scientific has always had a strong service presence in Houston. Now, the mobile service vans and expert technicians will be more fully equipped to provide service to inet customers and also to meet the challenging demands of virtually any plant turnaround or site project. Gas detection may be a small percentage of annual operating expense for most users, but the programs need to work flawlessly and without downtime to ensure the safety of workers and continuous operation of the plant. With comprehensive service offerings like inet, Industrial Scientific fulfills this need by undertaking the management of a company s gas detection program and allowing users to focus on their core competencies. The new service center offers a number of rental and leasing programs as well as complete inet instrument monitoring services. Factory-certified maintenance and repair services can also be conducted in-house or on-site. Mobile service vans are equipped to provide function testing, calibration, and required maintenance documentation and record keeping. Houston Service Center Global Business Park 2300 Pasadena Freeway Suite 103 Pasadena, TX Phone: DETECTS or (713) Fax: (713)

3 You just can t get better maintenance. Leave it to Industrial Scientifi c to create the industry s fi rst gas monitor maintenance program a plan that puts the power of our team behind yours every day. With inet, we offer comprehensive service and maintenance of all your gas monitors, including calibrating, repairing, replacing and providing instruments whenever needed. Through our Docking Stations and Internet technology, we ll automatically track the performance of all your monitors, and even provide weekly instrument status reports. It s convenient, safe and cost-effective, with a monthly service fee that s all-inclusive. So call us today about inet. And shift the burden of maintaining your monitors to our team experts who take the protection of lives as seriously as you do. 3

4 PRODUCT NEWS GasBadge Plus Receives Third-Party IP66/67 Certification and Agency Approvals The GasBadge Plus single gas detector has received a third-party certified ingress protection (IP) rating of 66/67 and additional agency approvals. The IP rating of 66/67 indicates that the two-year, maintenance-free monitor was tested to be dust-tight and resistant to water ingress from both water jets and immersion for 30 minutes at a depth of one meter. This test certification further demonstrates the gas detector s performance in the harshest industrial environments. Agencies that have recently approved the GasBadge Plus include United Laboratories (UL) for GasBadge Plus 4 the International Electrochemical Commission as noted on certificate number The instrument passed the intrinsic safety certification tests and now carries the IIC T4 hazardous locations marking code. The Mine Safety and Health Administration (MSHA) also approved the GasBadge Plus, allowing it to be used in mining applications. The GasBadge Plus is ideal for monitoring carbon monoxide (CO) or nitrogen dioxide (NO 2 ) in mines or any application where those gases or unsafe levels of oxygen (O 2 ), hydrogen sulfide (H 2 S) or sulfur dioxide (SO 2 ) are present. Each GasBadge Plus monitor carries a two-year warranty. GASBADGE PLUS APPROVALS New Options Available for itrans Fixed-Point Monitor Stand-Alone Fixed System The newest member of the itrans family of fixed-point monitors offers a complete stand-alone fixed system. It consists of an audible and visual alarm mounted directly to the unit and wired to the low and high alarm relays. Different audible tones distinguish between low and high alarms while the ultrabright strobe alerts workers that a gas hazard is present. An optional 24 VDC power supply can be added, making the overall system a complete plug-in functional system that is simple and easy to install or deploy. A 4-20 ma output as well as a ModBus interface, allow the unit to be connected directly to a PLC, DCS, or stand alone control system. Industrial Scientific s smart sensor GasBadge Pro Capabilities Enhanced With New Sensor Offerings New sensor offerings have expanded the GasBadge Pro s capability to an even wider range of industries and applications. The full-featured, dockable single gas monitor can now accommodate hydrogen cyanide (HCN) and low hydrogen (H 2 ) interference carbon monoxide (CO) sensor options. The HCN sensor option makes GasBadge Pro an ideal gas monitor for safety professionals, plant managers and first responders in the precious metal mining and recovery, gold plating, food and beverage, and hazardous materials (HazMat) industries. The introduction of a low H 2 interference CO sensor option provides an ideal personal monitor for applications where the presence of hydrogen in the atmosphere typically produces inaccurate GasBadge Pro technology allows for single or dual sensor operation. The sensors can be mounted directly onto the itrans, or placed remotely up to 200 meters away. CO Detection with Low Hydrogen Cross Interference Carbon monoxide (CO) sensors have a very high cross interference to hydrogen (H 2 ), which can cause false alarms. The new low H 2 interference CO sensor offered in the itrans reduces the cross interference effect to less than five percent, reducing the number of false alarms in hydrogen rich atmospheres. This new sensor can itrans Stand- benefit industries such Alone System as steel manufacturing, drilling, refining, pulp and paper, power plants, waste water treatment, food processing and tunneling. readings and nuisance false alarms. When calibrated to a common standard of CO gas, GasBadge Pro produces accurate readings, without false alarms, in environments with more than 750 PPM hydrogen. GasBadge Pro can be quickly adapted with interchangeable smart sensors. It monitors unsafe levels of oxygen or any one of the following additional toxic gases: ammonia, carbon monoxide, chlorine, chlorine dioxide, hydrogen sulfide, nitrogen dioxide, phosphine and sulfur dioxide. GasBadge Pro provides a lifetime of gas hazard protection with more features than any single gas monitor available. Each unit comes standard with datalogging and is compatible with the award winning DS2 Docking Station and inet Instrument Network.

5 Expanded Line of Fixed-Point Monitoring Equipment Available The acquisition of Oldham, S.A. of France from 3i Group PLC on May 12 has added a number of fixed-system gas monitoring products to the Industrial Scientific product line including: 1 to 64 channel controllers 2-wire and intrinsically safe transmitters Fire and gas control systems SIL 2 certified products IR sensor product offerings Commercial product line MX48 Controller inet Provides More Effective Service with Enhanced Reporting The inet Instrument Network automates and performs all the functions of gas monitor maintenance and management. Besides automatic charging, bump testing and calibration, inet sends weekly status reports and automatically initiates any service requirements. Plus, new features have been integrated into all new and current inet agreements. For example, inet will now include a Warnings Report to inform customers if a scheduled event has been missed. The report frequency and day can be customized for each customer. Our Technical Support Group can also generate complete history reports for any instrument in the inet database at the customer s request. The reports include an instrument tracking history through inet Reporting Capabilities Asset tracking by serial number Days since last calibration Overdue calibrations Age of sensors Sensors with marginal span reserves Calibration gas cylinder pressure status Low, empty or expired calibration gas Instrument malfunction notification Missing instruments Missed event warning Instrument history reports by location previous docked locations. Why is Industrial Scientific the only gas monitor manufacturer offering a program like inet? That s because only Industrial Scientifi c can. As the pioneer in automation, Industrial Scientific combines its patented Docking Station technology with the Internet to create a higher standard of service. More than a means of outsourcing gas monitor maintenance, customers can outsource the responsibility of gas monitoring through inet. As a company with a 100 percent focus on gas detection, Industrial Scientific is one of the few manufacturers that would welcome the responsibility of ensuring your employees safety. DS2 Bundled with Server or Laptop for Turnkey Operation Industrial Scientific customers in virtually every industry have embraced the DS2 Docking Station for automating gas monitor testing, calibration, record keeping and diagnostics. To make the DS2 more accessible and easier to implement, a number of turnkey systems are available and delivered ready for use. The DS2 Turnkey package includes one Instrument Docking Station, a server PC with Windows 2003 Server operating system installed, keyboard, flat panel monitor, five-port Ethernet hub, and the cables necessary to connect the system together. The DS2 Laptop Turnkey package includes one DS2 Instrument Docking Station, a laptop with Windows XP Pro operating system installed, fiveport Ethernet hub, and cables for connecting the system. These options are ideal for setting up a standalone Docking Station system, or for incorporating the system into a current network with one source for equipment. The laptop system is ideal for travel or remote calibrations. The Ethernet hub in the package allows the system to be easily upgraded with additional DS2 units at any time. Unfortunately, due to United States Docking Stations automate the more time-consuming tasks associated with gas monitor management. regulations regarding the export of computer hardware, the DS2 Turnkey System is not available for delivery outside of the United States. Consult your local Industrial Scientific Regional Sales Representative for DS2 turnkey alternatives in areas outside the United States. 5

6 company news Expanding Globally to Enhance Customer Service Industrial Scientific Honored for Achievements in Advanced Manufacturing Continued from page 1 Industrial Scientific Corporation was named one of Southwestern Pennsylvania s top 10 advanced manufacturing companies by the Pittsburgh Technology Council. The Tech 50 Awards Program annually recognizes the region s leading technology-oriented companies in five award categories for achievements in growth and innovation. Companies headquartered in a 13- county area of southwestern Pennsylvania were evaluated based on several criteria including sales growth, employee growth and retention, innovation, and market leadership. Industrial Scientific s uncompromising commitment to product innovation and customer service is best exemplified by the development of the inet Instrument Network, said Justin McElhattan, President of Industrial Scientific Americas. This comprehensive, service-based solution allows customers to outsource management of their entire gas detection fleet to Industrial Scientific eliminating several cost-intensive and time-consuming tasks. inet is scalable, flexible and underscores the company s commitment to meeting customers evolving needs. An independent panel of judges comprised of individuals from Council member organizations and sponsors evaluated companies in each of five industry categories advanced manufacturing, information technology, life sciences, service providers and rising stars. The Advanced Manufacturing category includes industries that are largely automated and use a high degree of process controls, robotics, advanced IT systems and other automated processes. and importing best practices in all areas of operations in order to serve customers better in an increasingly competitive marketplace. The motivation behind this transaction is simply to serve the customers of both companies better. Jean-Marc Santraine added, I am pleased that this combination creates the clear, worldwide leader in gas monitoring instruments and systems. Expanded resources will provide our multinational customers with the benefits of more localized services and wider product offerings. I believe our customers will be supportive when they see how strongly the two companies complement each other in geography and product lines. With so many positive outcomes, the Corporation can more effectively provide the best customer service and solutions to the worldwide market of gas detection. Informative articles written by Industrial Scientifi c personnel have been published recently in various trade media. You can read the full text of the following articles by logging on to Best Practices in Gas Detection Five Keys to a Safer Workplace by Mike Maxwell, Regional Manager, Southeast Asia Review of Sensor Technologies Used in Portable Gas Monitors by Herman Kramer, Regional Manager and Kay Mangieri, Director of Marketing 6 Published Articles Protecting the First Responders by Kay Mangieri Clear The Air by Dave Wagner, Director, Portable Products Best Practices in Gas Detection: 5 Keys to Remote Sampling by Matt Thiel, Fixed Systems Product Manager Testing Recommendations for Gas Monitoring Instrumentation by Matt Thiel The Evolution of Protection by Bill Smith, Inside Sales Manager Get a Handle on Gas Detection by Tom Suski, Marketing Communications Manager Do s and Don ts of Atmospheric Testing by Dave Wagner Just What the Doctor Ordered (for Fixed Gas Monitors) by Matt Thiel Monitoring Gas Exposure Data: New Technologies Raise the Bar by Kay Mangieri The Age of Smart Instruments by Kay Mangieri Gas Detection s Next Era: Emerging Technologies Deliver Process Excellence by Justin McElhattan, President, Industrial Scientifi c Americas Confined Space Entry by Bill Smith Old Fashioned Industrial Hygiene in a Modern World by Dave Kuiawa, Director of Training More than Bells and Whistles by Tom Suski Confined Spaces and Gas Detection by Bill Smith Placement and Maintenance of Fixed-Point Gas Monitoring Systems by Matt Thiel

7 We go to the ends of the earth for you. With offi ces in: Australia Canada China Czech Republic Dubai France Germany Italy Kingdom of Saudi Arabia Netherlands Singapore Switzerland United Kingdom United States Singapore Training Partnership Developed Industrial Scientific Asia-Pacific s Singapore office has teamed up with NTUC Learning Hub, a Singapore government-owned organization offering locally accredited safety training programs. NTUC recently purchased several sets of M40 Confined Space Kits, M Cal Calibration Stations and Gas- Badge Plus monitors. The equipment will be used to give course participants hands-on experience with the latest in gas monitoring instrumentation. The programs on confined space and shipyard safety are completely sold out months in advance with over 100 students enrolling each month. Every student that completes the program also has the opportunity to purchase an Industrial Scientific instrument at a special discount. company news inet Instrument Network Simplifies Water District s Gas Detection Program When 18 million people in six counties rely on your organization for treated drinking water, you can t afford to be distracted by activities not directly related to that mission. As the largest provider of its kind in the United States, the Metropolitan Water District of Southern California operates a large fleet of gas monitors at several facility sites. While essential for worker safety, managing the testing, calibration and record-keeping of each instrument can divert resources from the core business and decrease workforce productivity. For several reasons, Metropolitan Water District of Southern California selected the inet Instrument Network to automate the maintenance and management of its fleet of gas detectors. Industrial Scientific s inet Instrument Network is a total-cost-of-ownership program that eliminates the most costintensive and time-consuming tasks involved with managing gas monitors. The inet solution will solve a lot of the issues we had related to maintenance and record-keeping of our gas monitoring equipment, which is deployed over 12 different plants, said Mark Landgaard, industrial hygienist for Metropolitan District. With its focus on safety, continuous improvement and reporting requirements, Metropolitan has historically been one of the safest utilities in the nation. One of our biggest concerns was the cost of having to keep a large number of back-up monitors due to the lag in third party repair and maintenance work, Landgaard said. inet enables us to streamline our gas monitoring fleet with half the instrument inventory, significant cost savings and no instrument downtime. Metropolitan s gas monitor fleet is now at 172 instruments. From an equipment management standpoint, the volume of this reduction has provided immediate benefits for their safety program. Combining the two-way communication technology of Industrial Scientific s DS2 Docking Station and the capabilities of the Internet, inet continually monitors for conditions such as low, empty or expired calibration gas, marginal or failed sensors, and days since last calibration. Weekly reports are sent on Mark Landgaard the status of the Industrial Hygienist instrument fleet Metropolitan District and immediate reports are sent when a problem is detected. A number of options are available to handle service requirements, and Metropolitan selected the inet Exchange Program. Should a malfunction occur, inet will initiate the delivery of a readyto-use replacement monitor to any one of the Water District s work sites. The original instrument is then sent back to Industrial Scientific in a prepaid shipping package. We developed inet to provide value that extends well beyond the convenience and time-saving benefits of the Docking Station, said Garth Miller, Industrial Scientific Vice President of Customer Services. When your gas detection equipment is monitored and serviced by the manufacturer, you can focus more resources toward your core business and dramatically increase productivity, he added. The inet program enables us to streamline our gas monitoring fl eet with half the instrument inventory, signifi cant cost savings and no instrument downtime. 7

8 1001 Oakdale Road Oakdale, PA USA Want to Receive News Via ? If you would like to receive Industrial Scientific new product news and helpful articles on gas monitoring via , please log on to com/subscription.asp Our Promise: Highest Quality Products Best Customer Service Our Commitment: 100% Focus on Gas Detection