KIOTI Product Support News Updates 1 Warranty Support

KIOTI Product Support News & Updates 1

Warranty Support Improvements • On-Line Warranty – Resulted in faster processing of dealer warranty credits • DSM processing guidelines: 30 days • Current average processing time: 5 calendar days • Warranty Claims move at the “Speed of Email” KIOTI is crediting dealers equal to, or faster than recognized industry leaders 2

Warranty Support Improvements • Warranty Registration “E-File” – Benefits to your Dealership: • No More Envelopes and Stamps for Product Registrations • Image of Registration & Signatures Stored Electronically • Registrations Received at the Speed of Email • Eliminates Need to Provide Copy of Registration with Bonus Program Paperwork* *Assuming All Bonus Program Paperwork is Complete and contains Serial Numbers 3

Warranty Support Warranty Improvement Dealer’s Meeting Special Announcement! 4

Warranty Support Improvements Existing Warranty 5

Warranty Support Improvements New Warranty 6

Warranty Support Special Case Allowance • Special Case Allowance (SCA) numbers are issued on a Case-By-Case request • SCA number is required for any warranty policy adjustment • Please consult with your assigned Technical Support Specialist for SCA approval. 7

Warranty Support High Cost Repair • Warranty repairs (parts & labor) estimated to be greater than $1000 require prior High Cost Repair (HCR) approval. • Please consult with your assigned Technical Support Specialist for HCR approval. 8

Warranty Support Engine Failure Worksheet • Engine replacements under warranty require an Engine Failure Worksheet be completed for approval – Engine Failure Worksheet can be accessed on the Dealer’s Den, Service Page, under “Forms/Download” 9

Warranty Support Photographs • “A Picture Is Worth A Thousand Words” • Photographs provide important visual information regarding: – Type of Damage – Extent of Damage – Mode of Failure • Photographs are required for the following Warranty Claims: – – Engine Changes Cosmetic Repairs Structural Failures Other items on-request 10

Warranty Support Extended Support Hours • Extended Hours Technical Support Line – Pilot Program – Launched January 2, 2008 – Technical Support Specialist available until 8 pm EST (5 pm PST) – TSS crew operating on rotating shifts • Concurrent with extended Parts & Wholegoods Support (Lynn King) 11

Technical Training KIOTI University 12

KIOTI University Extremely Positive Feedback On 2007 Training Many attendees commented that KIOTI training was better than other companies considered industry leaders 13

KIOTI University State-Of-The-Art Training Simulators ensure the best in systems training 14

KIOTI University • 2 -Day Curriculum • Located at KIOTI N. A. Headquarters in Wendell, NC. 15

KIOTI University Attendance • Required for those dealers who not attend 2007 Service School – 12. 5% of Volume Bonus Plan contingent on successful completion • Open enrollment for those dealers who successfully completed January 1, 2007 “Travel Assistance Program” To help offset travel expenses $300 Stocking Parts Allowance* For all participating Dealerships *May not be applied to the 2008 Stocking Parts Program 16

KIOTI University 2008 KIOTI University Dates – Feb 7 & 8 – Feb 11 & 12 – Feb 14 & 15 – Feb 18 & 19 – Feb 21 & 22 – Feb 25 & 26 – Feb 28 & 29 17

Parts Support Improvements • Parts Warehouse – Increased shelf space = higher parts capacity 14, 000 cu/ft Rack space added 18

Parts Support Improvements • Parts Warehouse – Improving parts forecasting software • Bi-Annual revisions adjust re-order set-points as required – Increased staffing • Full-Time Parts Procurement (Brenda Wynne) • Parts Shipping & Receiving 19

Parts Support Improvements • Developed new data sharing method with On-Line Warranty vendor – Reduced lead times for updates to go active – Increased frequency of updates • 22 tractor models updated in November 20

Parts Support Improvements • Parts Warehouse – High level communications with Daedong Regarding: • Back Order Reduction • Increasing Fill Rates • Reducing Lead Times 21

Parts Support Improvements Annual Fill Rate Percentage 22

Parts Support Improvements • Streamlined Shortage & Damage Processing – Formalized protocol – Eliminated chokepoints – Updated/Simplified form • Posted on Dealer’s Den (Parts, Forms/Downloads) 23

Parts Support Canadian Dealerships • “UPS World Ease” Shipments for Canadian Dealers – Savings on shipping costs • Reduced cost of brokerage & clearance fees • Reduced backorder freight costs – Canadian shipments on Tuesdays & Fridays • Defined in DSM paragraph 7. 10 24

Parts Support Canadian Dealerships • Canadian Backorders – Canadian dealers are being contacted on all backordered parts to determine: • Can the part be held for next bulk shipment? – Tuesday – Friday • Does the part need to be shipped immediately? 25

Parts Support Part Stocking Program • Part Stocking Program: – 1 FY 08 Stocking Order of $1000 to qualify – Applies to your Volume Bonus Program • New dealers (Established after January 1, 2007) – 12. 5% of Volume Bonus • Existing dealers (Established before December 31, 2006) – 25% of Volume Bonus 10% Re-Stocking Fee on Annual Parts Return Has Been Cancelled! A Custom “Annual Parts Order Profile” for your Dealership is available on request. Please contact the Parts Sales Representative for you area. 26

Thank You & Enjoy Cancun! 27