Parker Hannifin Canada

Cylinder Division

P.O. Box 38

Owen Sound, Ont. N4K 5P1

Phone (519) 376-2691

Fax (519) 376-8018

December 5, 2001

To: Cylinder Division Distribution CC: Plant Managers

CAE's

TM's

Customer Service

RE: Product Lead Times

Please find enclosed a copy of our new plant capabilities and lead times. This will provide you and your customers with better on time performance and more accurate and timely information on the availability of our products.

This is to assist you, as Distributors, in determining the lead times to quote your customers for our products. This is based on the length of time from receipt of order to shipping from our facilities. Please ensure that you allow for any additional travel time for the shipping of the products.

In the past we have stated a specific lead time of 5 days, which was not realistic to manufacturing loads and capacity issues. Now we have changed to a window of 3 – 7 days, which is more realistic to manufacturing loads and capacity issues in the manufacturing of our products.

On a daily basis we will post, on the TOPS bulletin board, the current lead times of our products. It will be based on standard steel body products (2A / 2H) lead times for volumes up to 5 pieces per line item.

If you require lead times shorter than standard, we request that you contact your local facility to confirm the availability of the components and manufacturing availability. Our Customer Service personnel will confirm your requirement with the respective Plant Manager to ensure that we can meet your demand prior to you committing to your customer. Once you have confirmation, this should be placed in the header notes section of your order to ensure no delays in processing.

We are interested in your feed back and suggestions to improve this communication process in the future. This will only improve our success as a Manufacturer and your success as a Distributor by working on delivery and communication issues together.

Look forward to hearing your comments.

Yours truly,

Dennis Mighton

Customer Service Manager

Canadian Cylinder Division

F:\hatenn\Mighton\Product Lead Times.doc