Efficiency Standards By Region

Rheem

Efficiency Standards By Region Region New Federal Minimum Efficiency Levels (Jan. 1, 2015) Air Conditioning Heat Pump Split Package Split Package Gas Packs (Rooftops) North 13 SEER 14 SEER 14 SEER 8.2 HSPF 14 SEER 8.0 HSPF 14 SEER 81% AFUE South 14 SEER 14 SEER 14 SEER 8.2 HSPF 14 SEER 8.0 HSPF 14 SEER 81% AFUE South-west Pdts < 45k btuh: 14 SEER 12.2 EER Pdts > 45k btuh: 14 SEER 11.7 EER 14 SEER 11.0 EER 14 SEER 8.2 HSPF 14 SEER 8.0 HSPF 14 SEER 81% AFUE

Voice of Customer (VOC) Voice Of Customer 4 Consumer Focus Groups In-Depth Interviews w/ distributors & Dealers Dealer Surveys Simple design Easy to service Easy access panels Quiet performance Minimal fasteners/screws Service diagnostics Fits through standard gate (36 ) Efficiency diagnostics (multiple sys) Modern aesthetics 2-stg, V-S performance Indoor air quality Small cabinet & coil size Must have Nice to have Rheem Feedback Serviceable Best in Class - Rec. Simple design Value Reliable Noise level Brand awareness (VBL) Improve diagnostic indicators VRF/Ultra High Efficiency

Product Excellence Panel (PEP) Competitive Benchmarking The Ideal Condenser Exercise Proposed Design Evaluation Controls & Technology discussion RESULTS: Must Haves Design Concept Corner service access Minimal fasteners Composite base pan Easy coil cleaning Enlarged control box Improved service valve access Improved aesthetics Price-focused tech insertion VRF- industry leading performance Quick motor/board disconnects Swept fan blades

Voice of Customer 3 rd Cooling Product Excellence Panel VERY POSITIVE feedback on new platform PEP Feedback : 14 SEER [rated on a scale of 1-5 (lo-hi)] Rheem New Plat. Rheem Old G'man Trane 4.5 4.4 4.6 4.6 4.4 3.1 3.3 3.2 3.2 3.2 3.3 3.2 3.2 3.3 2.7 2.7 2.7 2.4 2.4 2.2 Installation Service Quality Design Performance PEP Feedback : Inverter [rated on a scale of 1-5 (lo-hi)] Rheem New Plat. Carrier Lennox 4.5 4.3 3.0 2.7 2.9 2.6 4.6 4.4 4.4 3.3 3.5 3.1 3.1 3.3 2.7 Installation Service Quality Design Performance

New Platform: The Future Product Tiers

30+ Features to make your job easier Plus One Energy Efficiency Pluse One Expanded Valve Space Plus One Triple Service Access PlusOne Communication 20-SEER thru 5 tons 13-HSPF thru 5 tons Composite Base pan Optimized fan orifice Louvered coil protection Scroll compressor Modern cabinet aesthetics Visual brand language EcoNet 15" wide control box Easy Hi/Lo voltage hookup External gauge ports Service trays Integrated lift receptacles Easy handling No sharp edges Sturdy cabinet EcoNet Corner service access Diagnostic service window QR code Smart Component placement 35% less fasteners Single row coils Service friendly outdoor fan Easy disassembly/re-assembly EcoNet Intuitive Programming System-wide WiFi Mobile apps & website Simple wiring- 4/3 setup Self-configure 30 sec Auto Airflow Optimizes Dual fuel ready Complete diagnostics System accessory mgmt.

20-SEER thru 5 tons 13-HSPF thru 5 tons Regional efficiencies Composite base pan Optimized fan venturi Louver coil protection Scroll compressors Modern cabinet aesthetics Visual brand language EcoNet Air Conditioner SEER Ratings Comparison 024 036 048 060 Rheem (RA20) 20 20 20 20 Carrier (24ANB1) 21 20 18 16.7 Trane (XV20i/4TTV0) 20 20 20 19 Lennox (XC25) 25 23 21 19.5 York (CZH) 17.05 18.5 17 16 Goodman (DSXC18) - 19 18 17 Daikin (DX20VC) 24.5 21 21 20 Nordyne (PSA4BI) 25.5 22 22 -

20 SEER thru 5 tons 13 HSPF thru 5 tons Regional efficiencies Composite base pan Optimized fan venturi Louver coil protection Scroll compressors Modern cabinet aesthetics Visual brand language EcoNet Heat Pump HSPF Ratings Comparison 024 036 048 060 Rheem (RP20) 13 13 13 13 Carrier (25VNA0) 13 13 12.5 12 Trane (4TWV0/XV20i) 10 10 10 10 Lennox (XP25) 10 10 10.2 10.2 York (YZH) 9.8 10 10 9.4 Goodman (DSZC18) - 9.5 9.5 9.3 Daikin (DZ18TC) - 9.5 9.5 9.3 Nordyne (PSH4BI) 10 9.6 10 -

20-SEER thru 5 tons 13-HSPF thru 5 tons Regional efficiencies Composite base pan Optimized fan venturi Louver coil protection Scroll compressors Modern cabinet aesthetics Visual brand language EcoNet Pan Captures Louver Panel Composite Pan Notch for Capturing Corner Post Condenser Coil Reduces Fasteners Eliminates corrosion Dampens vibration Lighter weight Rigid Compressor fastener inserts

Product Overview Formed and slotted corner posts 20-SEER thru 5 tons 13-HSPF thru 5 tons Regional efficiencies Composite base pan Optimized fan venturi Louver panels coil protection Scroll compressors Modern cabinet aesthetics Visual brand language EcoNet Formed curved louver panel 1 inch separation from louver to coil face to eliminate ice bridging on heat pumps

20-SEER thru 5 tons 13-HSPF thru 5 tons Regional efficiencies Composite base pan Optimized fan venturi Louver coil protection Scroll compressors Modern cabinet aesthetics Visual brand language EcoNet Scroll Compressors Across entire product line Superior efficiency & quieter operation Greater reliability, 70% fewer moving parts Ability to start under any system load, without start components

15 wide control box Easy Hi/Lo voltage hookup External gauge ports Service trays Integrated lift receptacles Easy handling No sharp edges Sturdy cabinet EcoNet

PlusOne Expanded Valve Space Feature 3-4 -5 service valve space provides an open working area of 27 3 between valves 4 below valves 5 above valves Benefits Open access to schrader valves More clearance for brazing line sets Plenty of room to hook up low loss gauge fittings Easier valve opening 3 4 5

Corner service access Diagnostic service window QR codes Smart Component placement 35% less fasteners Single row coils Service friendly outdoor fan Easy disassembly/re-assembly EcoNet Quick access to data on the jobsite: I&O Manuals Spec Sheets Wiring Diagrams Parts Lists QR included on packaging and rating plate

30+ Features to make your job easier PlusOne Energy Efficiency PluseOne Expanded Valve Space PlusOne Triple Service Access PlusOne Communication 20-SEER thru 5 tons 13-HSPF thru 5 tons Composite Base pan Optimized fan orifice Louvered coil protection Scroll compressor Modern cabinet aesthetics Visual brand language EcoNet 15" wide control box Easy Hi/Lo voltage hookup External gauge ports Service trays Integrated lift receptacles Easy handling No sharp edges Sturdy cabinet EcoNet Corner service access Diagnostic service window QR codes Smart Component placement 35% less fasteners Single row coils Service friendly outdoor fan Easy disassembly/re-assembly EcoNet Intuitive Programming System-wide WiFi Mobile apps & website Simple wiring- 4/3 setup Self-configure 30 sec Auto Airflow Optimizes Dual fuel ready Complete diagnostics System accessory mgmt.

New Rheem vs. Current Market New Rheem Present Rheem Carrier Trane Lennox Goodman York Nordyne Performance 20 SEER thru 5 tons 13 HSPF thru 5 tons Composite Base pan Optimized Fan Venturi Louvered coil protection Scroll Compressor Modern Cabinet Aesthetics Visual Brand Language EcoNet (Communicating Controls) Installability 15" wide control box Easy Hi/Lo voltage hookup External gauge ports Service Trays Integrated lift receptacles Easy handling No sharp edges Sturdy cabinet EcoNet (Communicating Controls) Servicability Corner service access Diagnostic service window QR codes Smart component placement 35% less fasteners Single row coils Service friendly outdoor fan Easy disassembly/re-assembly EcoNet (Communicating Controls) Has Feature Does not have Feature Partial feature

New Platform Product Offering Model Nomenclature Condensers 1 2 3,4 5,6 7 8 9 10 11 12,13,14 R A 14 24 A J 1 N A * Brand Product Category SEER Capacity Major Series* Voltage Type Controls Minor Series** Option Code R - Rheem/Ruud A - AC 13-13 SEER 18-18,000 BTU/HR A = 1st Design J - 1ph 208-230/60 1 - Single stg C - Communicating A = 1st Design *TBD 14-14 SEER 24-24,000 BTU/HR C- 3 ph 208-230/60 2 - Two stg N - Non-comm 16-16 SEER 30-30,000 BTU/HR D - 3ph 460/60 V - Inverter 17-17 SEER 36-36,000 BTU/HR Y 3ph - 575/60 P-Piston 20-20 SEER 42-42,000 BTU/HR...etc 48-48,000 BTU/HR 60-60,000 BTU/HR Heat Pumps 1 2 3,4 5,6 7 8 9 10 11 12,13,14 R P 14 24 A J 1 N A * Brand Product Category SEER Capacity Major Series* Voltage Type Controls Minor Series** Option Code R - Rheem/Ruud P - HP 13-13 SEER 18-18,000 BTU/HR A = 1st Design J - 1ph 208-230/60 1 - Single stg C - Communicating A = 1st Design *TBD 14-14 SEER 24-24,000 BTU/HR C- 3 ph 208-230/60 2 - Two stg N - Non-comm 15-15 SEER 30-30,000 BTU/HR D - 3ph 460/60 V - Inverter 17-17 SEER 36-36,000 BTU/HR Y 3ph - 575/60 P-Piston 20-20 SEER 42-42,000 BTU/HR...etc 48-48,000 BTU/HR 60-60,000 BTU/HR Furnace Coils 1 2 3 4,5 6,7 8 9 10 11 12 R C F 24 17 S T A M C Brand Product Category Type Capacity Width Efficiency Metering Device Major Series* Orientation Casing R - Rheem/Ruud C - Evap Coil F - Furn Coil 24-2 ton 14-14" S- Standard Eff. T-TXV A = 1st Design M - Multipoise C - Cased H - Air-Handler 36-3 ton 17-17.5" M- Mid Eff. E-EEV V - Vertical only/convertible U - Uncased 48-4 ton 21-21" H- High Eff. P-Piston H - Ded. Horizontal only 60-5 ton 24-24.5" Air Handlers 1 2 3 4 5,6 7,8 9 10 11 12 13 14 R H 1 P 24 17 S T A N A A Brand Product CategoryStages of Airflow Motor Type Capacity Width Coil Size Metering Device Major Series* Controls Voltage Minor Series** R - Rheem/Ruud H=Air-Handler 1 - Single 2 - Two Stage V - Variable Speed T - Constant Torque 24-2 ton 36-3 ton 14-14" 17-17.5" S- Standard Eff. M- Mid Eff. T - TXV E - EEV A = 1st Design C - Communicating A - 1ph 115/60 A = 1st Design N - Non-comm J - 1ph 208-240/60 M - Modulating P - PSC 48-4 ton 60-5 ton 21-21" 24-24.5" H- High Eff. D - 3ph 480/60

20+ Features Hemmed edges* Sealed Doors <2% Qleak* Reduced noise* EcoNet ** More system match-ups Short 34 cabinet Hemmed Edges* Backward compatible venting Dip Switches 4 /3 flue adaptor*,*** EcoNet - 4/3 wire set up** EcoNet - Auto-configure** 1/4 turn door knobs* Hemmed edges* ¼ Fasteners* Fault History QR Code Removable heat exchanger Blower rail system* EcoNet advanced diagnostics** Less replacement motors Relocated blower capacitor & transformer front access* *UF /HZ units ** R802V units *** accessory kit

Rheem VBL by Family Classic Classic Plus Prestige R92P/R95P R95T/R96P R96V/R97V

Feature - Fact - Benefit Feature Fact Benefit PlusOne Ignition System Direct Spark Ignition Only OEM using on residential product DSI used on commercial HVAC products & various home appliances ( oven/stoves) Reliability < 0.03% defects Reduced service calls Greater Customer satisfaction 4 way Multi- poise All units can be installed UF, HZ or DF Easy ordering - no dedicated SKUs Gives contractor added installation flexibility at the job site More Venting options 8 vs 3 Longer vent lengths- 2 & 3 PVC Approved for Polypropylene systems PlusOne Water Management System Patented tubular HX Rheem exclusive patent pending Blocked drain sensor, marked hoses & condensate trap relocation Improved air flow and up to 30% reduction in blower watts Gives contractor added installation flexi ability at the job site and more product applications/installations Improved diagnostics Faster, easier, simpler installation Avg. SEER improvement- HVAC system Quiet operations 34" cabinet Rheem pioneered Installation flexibility Blower shelf rail system 2 screws & pull out blower assembly Improved Service ability Hemmed Edges Jackets and doors Improved door seal <2% air leak ¼ turn door fasteners No tools required to access internal items Faster set up and service calls PlusOne Diagnostics 7 segment LED Faster, more accurate diagnostics Dip switches on IFC Preferred by contractors over jumpers Faster install, easier more accurate system set up All major parts front access ¼ or 5/16 fasteners Less tools to carry, faster service calls New Collector box design replaceable Faster service calls and less expensive repair vs entire HTX Zero Clearance DF Alls units one kit No dedicated SKUs or multiple kits QR code All documents available On site resource for installer or technician

30+ Features 97 AFUE New Heat Exchanger +SEER improvement 80% SKUs 95+ AFUE 50% SKUs e 30% < blower watts 20% < noise New Inducer EcoNet 4 Way multi poise Short 34 cabinet Hemmed Edges Longer vent Lengths More venting options Polypropylene venting Zero clearance DF kit Dip switches EcoNet ¼ turn door knobs 5/16 & ¼" fasteners Blower shelf rail Replaceable collector box Blocked drain sensor Removable Heat Exchanger Condensate trap relocated Zero clearance DF kit Fault history EcoNet

New Rheem 90s vs. 90%+ Market NEW Feature EcoNet Has Feature Does not have Feature Partial feature

90s Model Nomenclature New Model Number 1 2,3 4 5 6,7,8 9 10 11,12 13 14 15 R 95 V A 080 2 3 14 M S A Brand Series Motor Major Rev Input Stages Air Flow Cabinet Width Configuration Nox Minor Rev R = Rheem 90 = 90 AFUE V = Variable speed Feature Set Change 040 = 42K 1 = Single stage 3 = up to 3 ton 14 = 14" M = Multi X = Low Nox Component Change 92 = 92 AFUE T= Constant Torque (X-13) Performance Change 060 = 56K 2 = 2-stage 5 = 3 1/2 up to 5 ton 17 = 17.5" U = Up S = Standard Non-performance Changes 95 = 95 AFUE P = PSC 070 = 70K M = Modulating 21 = 21" D = Down 96 = 96 AFUE 080 = 85K 24 = 24.5" H = Horz 97 = 97 AFUE 100 = 98K? = Up/Hz 115 = 112K? = Dn/Hz

New Rheem 90s vs. 90%+ Market NEW Feature EcoNet Has Feature Does not have Feature Partial feature

New Rheem 80s vs. 80% Market NEW Feature EcoNet Has Feature Does not have Feature Partial feature

Controls - Competitive Overview Has Feature Does Not Have Feature Partial Feature Only Rheem can offer on HVAC & Water systems With compatible Rheem products Note - At this time Nordyne does not have a communicating system that competes with these systems