MicroBlend Enters Latin America

MicroBlend Inc. has entered the Latin American market with the installation of its paint systems in Sodimac stores in Colombia. Sodimac is the leading home improvement retailer in Latin America. They currently have 100 large format locations in Colombia, Chile, Argentina and Peru and expansion continues throughout Latin America. The MicroBlend partnership will strengthen Sodimac’s existing leadership in the architectural paint market. Sodimac pioneered the use of captive brands in paint retailing in Latin American with introduction of Glam Kolor brand paints initially in their Chilean locations.

Incorporation of the MicroBlend system continues the history of innovation Sodimac offers their
customers in the construction and home improvement markets. MicroBlend has installed the latest version of its patented Paint Factory system, introducing the paint industry and the Sodimac stores to several new innovations to its technologies.

These innovations include benefits for consumers as well as the retailer. Customers benefit
from every product always being in stock, superior color matching, vastly greater color selection,
faster service, more selection in sheens, quality levels and sizes. Expanded size selection
reduces the number of containers actually used thus improving customer value by matching the
job need to the amount of paint purchased. This reduces waste and is only a part of the much
larger end to end approach the MicroBlend® system brings to the green story for sales of
architectural paints. The latest version of the Paint Factory provides higher dispense capacity
allowing the Sodimac stores to easily compete and win large commercial orders with superior
service, color matching and selection. Orders from one quart to 1500 gallons can be made
quickly without special advance ordering or planning. Sodimac has expanded the Glam Kolor
brand choices in quality levels to three, doubled the number of sheens available and now offer
over 50,000 new colors.

This latest MicroBlend Paint Factory system also features a new modular design requiring less
space and 72% reduction in installation time. MicroBlend® also eliminated the need for
specialized fixtures, further reducing system costs and installation requirements versus previous
installations. A new supply system improves dispense speed and accuracy utilizing pumps
manufactured in Europe. Numerous other innovations further improve and automate inventory
management and reduce system maintenance costs. While existing system reliability was over
99%, these innovations will improve upon this already impressive service level.

Today, MicroBlend® exports everything to Colombia that is needed to install and operate the
Paint Factory® system. Dispensing equipment includes six special pumps manufactured in
Europe with everything else manufactured and assembled in the USA. Fabrication of certain
parts and all subsystem assembly occurs in Gilbert, Arizona. The key to the paint is the
patented process of dispensing specific components in the blending of the specific paint ordered
by a customer. These liquid components are manufactured in Gilbert, AZ for export to
MicroBlend S.A. in Colombia. As expansion progresses some manufacturing will transition to
Latin America for improving cost structures and customer value.