Document vBbmK32nBEmyJB9EX08EmrLdm

* . ^8ntfleant gains were liStfe in the disc brake area throughout the NAPA system. This market has grown considerably since 1967. The vast majority of every passenger car manufactured in the U. S. in the 1970's came equipped with at least one axle of disc brakes. All this motor vehicle population, yet we (the aftermarket rebuilders, service stations, independent repair shops, etc.) were not enjoying the tremendous increases. Why? - training at these levels - dealership captivity - and price awareness' You, Rayloc, have experienced-the disc pad increases by selling, training, and offering quality service and availability. *'* ' \ We'd like to think the introduction of our first line formula ABB 278 * ** also had something to do with the Rayloc success, while maintaining a premium to secotiskline ratio of 3 to 1. Congratulations, Rayloc. Lining sales (strips) remained virtually constant. The disc brake continues to errode lined shoe sales. 1979 and Future Forecast The disc brake market (replacement), which we project in 1978 will reach 70,000,000 (million) pieces or 17,000,000 sets (a 207. increase over the 1977 figure of 56,000,000 pucks). Our market share thru NAPA is 6.4% (4.5% Rayloc) of the total U. S. replacement market. 3