Corporate Overview and History

CORPORATE OVERVIEW AND HISTORY

ENABLING INNOVATIONS since 1844 CORPORATE OVERVIEW CORPORATE OVERVIEW FROM WHALING SHIPS TO SPACE SHIPS AND BEYOND HERITAGE Founded in 1844, Nye’s history is one of continual adaptation to market needs. From the Industrial Revolution to the Information Age, Nye has enabled and improved breakthrough products and critical new technologies. WELCOME TO NYE We are proud to number among our customers the foremost automotive OEM suppliers; the world’s largest aerospace and defense contractors; Nye Lubricants, Inc. is a leader in the innovation, formulation and manufacture We formulate, manufacture, market and sell high-quality synthetic oils, name-brand appliance and power tool companies; prominent in-vacuum of synthetic lubricants, with the headquarters in Fairhaven, Massachusetts. At greases, and specialty fluids. Our product development process is focused on the and clean room equipment manufacturers; and leaders in the emerging Nye, we bring together integrity, proven experience and deep technical knowledge customer’s performance specifications, cost, and warranty requirements. Nye medical-device and renewable-energy industries. Nye’s lubricants add to solve our customers’ toughest challenges and add value to products in a wide works with a broad range of industries, with a concentration in the automotive, value to thousands of products around the globe. range of industries and applications. Nye is a 180-employee member of the aerospace and defense, in-vacuum manufacturing, semiconductor, medical device, FUCHS Group of companies. Extending our reach are offices throughout the United appliance, and electronic markets. We also manufacture industrial maintenance States and 16 channel partners strategically serving major markets worldwide. lubricants for high temperature and extreme environments. All Nye products are PRODUCT RANGE Our technical sales and support offices serve over 50 countries worldwide. carefully engineered materials, formulated for a specific application and selected or developed in consultation with a customer’s engineering department. Nye’s lubricants are based on a wide range of synthetic oils, including polyalphaolefins, esters, glycols, polyphenylethers, silicones, alkylated naphthalenes, and all four types of perfluoropolyethers (PFPE). Through Fretting Wear Test Apparatus NYE’S MISSION IS TO PARTNER WITH INNOVATIVE COMPANIES AND PROVIDE HIGH-PERFORMANCE an agreement with Shell Global Solutions, Nye is also the exclusive global LUBRICANTS USING OUR LEADING-EDGE TECHNOLOGY AND ENGINEERING EXPERTISE. distributor of Pennzane™-based multiplyalkylated cyclopentane lubricants.

OPERATIONS TECHNOLOGY

Our facilities include R&D and production labs, cleanroom operations, Tribologists, chemists, mechanical, electrical, and chemical engineers all bring specialty packaging, production lines, and administrative offices. Nye’s their expertise to Nye’s product development efforts. We partner with raw annual grease production capacity is greater than 5 million pounds. Our material suppliers to evaluate new fluids, additives, thickeners and formulation products are available in a wide variety of packages, including blister packs, methods. We work closely with customers and routinely enter into Non- syringes, jars, tubes, cartridges, pails, and drums. We assemble lubricant Disclosure and Joint Development Agreements. We also seek out relationships kits, which customers often use for field maintenance and also private label with universities, research consortiums, and engineering departments at some any Nye product under customer brand names. of the world’s most innovative companies to continually improve our technical knowledge and services.

NYE’S VISION IS TO BE RECOGNIZED GLOBALLY AS A LUBRICANT AND ENGINEERED MATERIALS EXPERT. ITS PRODUCTS WILL SERVE AS ENABLING TECHNOLOGIES, COMBINING INNOVATION, PRODUCT KNOWLEDGE AND A FUNDAMENTAL UNDERSTANDING OF ITS CUSTOMERS’ REQUIREMENTS.

2 3 A HISTORY OF NYE A HISTORY OF NYE THE BEGINNING OF WILLIAM F. NYE INC. CAPTURING THE WORLD MARKET

Nye’s rise to fame as a world-class manufacturer of specialty oils was he presented papers on his oils that, according to the press, “were used by propelled by a marketing effort that would be the envy of any modern-day inventors of electrical appliances, locomotive speed recorders…and the most entrepreneur. delicate automatic machinery.”

Nye advertised in trade journals, making good use of notable testimonials. By 1889, William F. Nye, the consummate marketer, had become the largest Ungerer Bros., Keepers and Repairers of the Strasbourg Cathedral Clock; The manufacturer of sewing machine, watch and clock oils in the world, producing Waltham Watch Co.; Elgin Watch Co.; Giles Bros. & Co., inventor of the anti- more than 150,000 gallons annually for bulk delivery – plus over two million magnetic shield for watches; The Chicago Watchmaker’s bottles for jobbers and retail sales. In January of 1896, he absorbed his chief Institute – all touted the benefits of Nye oils. competitor, Kelley, and established an unbroken line to the 1844 origin of this specialized business. By year’s end he had tripled the size of his factory, Nye frequently exhibited his product at the “trade shows” of the day – cornered the market on raw materials, stockpiled nine-tenths of all fish jaw oil in including several World Fairs, the Columbian Exposition, the Paris Expo of the world – and captured the world market. 1889, where Gustav Eiffel unveiled his famous tower. At industry symposia,

William F. Nye (1824-1910) Founder of the Company

In 1840, William Foster Nye, barely 16 years old, left his family’s Cape Cod farm salad oil. However the market niche he set out to capture was lubricating oils for to carve his niche in the world of commerce. Before his death 70 years later, he delicate machinery: watches, clocks, chronometers, and later, sewing machines, would create a line of lubricating oils sought around the globe – and a company typewriters, bicycles and electrical instruments. that still bears his name today. He capitalized on the work of New Bedford watch maker Ezra Kelley. Kelley Apprentice to a master carpenter, Nye began his long career in New Bedford, discovered that oil from the jaw and head of the porpoise and blackfish proved Massachusetts. But he had a wanderlust to quench before settling into what superior to any other known lubricant for delicate mechanisms, and his oil, which would eventually become a lifelong pursuit. he began selling in 1844, had become a benchmark industry. Nye became Kelley’s chief competitor. He developed his own brand of “fish jaw oil,” but had to overcome He left New Bedford to build organs in Boston, took to sea as a ship’s carpenter, strong market resistance to a new brand name. He started at the top. With the worked at an ice house in Calcutta and went to California for the Gold Rush, where help of a trade journal publisher, he persuaded Cross and Beguelin, a leading he built a profitable business as a stair builder after the San Francisco fire. He manufacturer of watch and clock components in New York, to try his new returned to New Bedford to start an oil and kerosene business, and then left to formulation. Impressed with its quality, they adopted it as their own, and word serve in the Union Army as a sutler, a traveling merchant – the first to set up shop about Nye’s oil quickly spread throughout the industry. in Richmond after the defeat of the Confederate Army. Within 10 years, Nye had moved from his small, rented storefront to his own In 1865, he returned again to New Bedford and the oil business, first out of the stone factory on Fish Island in New Bedford – and he was well on his way to kitchen of his Fairhaven home, then from a small store front in New Bedford. He building a solid reputation for having “the best watch oil in the world.” sold a wide assortment of oils: burning oils, lubricating oils, even castor oil and

4 5 A HISTORY OF NYE A HISTORY OF NYE

QUALITY: THE FOUNDATION FOR SUCCESS Nye believed in marketing, but quality products, each responding to a particular market need, were the foundation of his company’s success. In 1901, as reported in his home town newspaper, he attended the Pan American Exhibit with no less than 32 varieties of oils, each adapted to their specific applications as to their fire test, cold test, specific gravity and viscosity. NICHE MARKETING IN THE “90S” An innovator in the industry, Nye maintained a laboratory at his Fish Island Short Story plant in New Bedford Harbor for what today would be called Quality Control and Nye had an uncanny ability to identify a profitable market niche. One example: the R&D. He also constructed his own bottling machine, patented by his son Joseph, Nye’s Advertisement in The Horological Journal, July 1878. FROM FISH TO FINISH bicycle – a U.S. industry that went from zero to $60 million in sales in less than Within six months of his first notice in his journal, Nye had secured a British which filled either one, two or three ounce bottles – a gross at a time. Untouched Total Quality Management may be a late 20th century concept, but William F. Nye seven years. distributor and had begun a price war with Ezra Kelley by offering liberal by human hands, the oil passed from tanks on the third floor through pipes directly discounts to dealers. embraced it 100 years ago. into the machine, which could fill nearly 4,400 bottles an hour. Spillage from Shortly after the bicycle’s introduction to the U.S. in 1889, Nye introduced “Lily broken bottles was caught in a tray and pumped automatically up three stories Nye unknowingly accepted a shipment of crude dolphin head oil that had been White,” a pure white, stainless, bicycle oil. He exhibited it to rave reviews at the to the holding tank. mixed with a lower grade oil by an unscrupulous supplier. The ruse wasn’t first national bicycle show in Madison Square Garden in 1897, where he offered discovered for two years – the length of Nye’s refining process – when the oil a reward of “$1,000 to anyone producing an oil equal in every essential quality to One of the most adventurous quality efforts initiated by Nye was a refinery he went to market. With his reputation threatened, Nye wrote that the only way to his own.” established in an old rolling mill in St. Albans, Vermont. To respond to a market ensure quality product was to control the manufacturing process “from fish to demand for an oil that would function at lower temperatures, Nye tried refining his No one accepted the challenge. NICHE CAPTURED. finish.” fish jaw oil in the sub-zero, winter temperatures of the Canadian border town. His experiments were successful. The process not only freed the oil from impurities He directed his son Joseph to establish a porpoise fishery on Cape Hatteras. KEEPS ON TICKING “that corrode or blacken pinions,” but his “St. Albans oil” maintained its lubricating Several 15 man crews, with boats and seines, would herd porpoise to shore, A Letter from a Customer properties from -50° F. to +200° F. render the oil from the head and the jaw, and begin the refining process at beach front factories, before shipping the crude oil to Nye’s New Bedford or Vermont Jan. 12th, 1896 Nye oil became synonymous with quality. It won awards at nearly every refinery. exhibition. But perhaps the greatest testimony to its superiority, was that it was Dear Mr. Nye, known and asked for by name throughout North and South America, Europe, the The result boasted Nye, was “a much finer article than has been put out by any Far East, Australia and New Zealand. manufacturer.” William F. Nye Chronometer Oil I have been in the watch repairing business for the past four years, and have used your oil on every

Far and Near: Nye watch I have cleaned, which has been about 3,000, exhibited his products and have never had a customer say his watch across the country stopped from freezing weather. I enclose you a - and across the Atlantic. But he also weather report of this place, so you can see for set up his display at yourself 50° below zero, which is very cold, and it home, at the Semi- Centennial Industrial has been lower still. Exhibition of 1897, which commemorated the 50th anniversary A. L. H. Brown, Watchmaker of New Bedford’s Calgary, Alberta, N.W. Ter., Canada Nye’s Invoices (circa 1910). incorporation as a city. Invoice for oils lubricating bicycles and watches.

6 7 A HISTORY OF NYE NYE TODAY CONTINUING TRADITION MADE IN AMERICA, MARKETED TO THE WORLD.

Nye’s porpoise jaw oil sold on the world market until the 1970s, though finding reliable sources for the raw material became progressively more difficult after his death in 1910.

Nye’s son, Joseph, managed the company until 1923 when it passed to business associate and RESEARCH & DEVELOPMENT friend, Anderson Kelley. The Kelley family operated the firm until 1956, during which time they Nye’s research and development has always been customer and market secured the crude oil from Canada - and from occasional stranding of blackfish on Cape Cod. 3% driven. Our team of experienced tribologist and chemists is closely connected 3% The third and current owners, who originally bought the business only for the real estate, decided to to technology leaders in a wide range of industries. We understand trends 6% rejuvenate the company after seeing its rather impressive client list, which included Bulova Watch, and future challenges related to lubricants in next generation design and GE and IBM. They continued to obtain raw blackfish head oil from Newfoundland. Later, they formed we partner with customers to provide solutions and enable, improve, and 7% new supply agreements with a fishing cooperative in the British West Indies, where natives still extend the lifetime of innovative products. hunted blackfish for food.

They also saw the handwriting on the wall; the harvesting of ocean mammals was threatening their extinction. In the early 1960’s, more than a decade before the Marine Mammal Protection APPLICATION ENGINEERING 8% MARKET 48% Act outlawed the importing of the company’s traditional raw material, the new owners began the DISTRIBUTION To validate how well a lubricant performs in our customers’ products, transition from porpoise oil and petroleum-based products to synthetic functional fluids. Nye’s engineering team partners with design engineers to simulate actual Today, synthetic hydrocarbons, esters, polyglycols, silicones, polyphenyl, and fluorinated ethers environmental conditions in our application and validation testing lab. Our 8% are the “raw materials” for Nye lubricants. But, the tradition that began more than 170 years ago testing capabilities can help shorten product development cycles, reduce continues. For specialty lubricants that meet the most rigorous demands of today’s “delicate test costs, and help our customers bring their products to market faster. machinery,” companies who want the best still turn to Nye. 17% MANUFACTURING

All Nye products are made in the USA, with an annual grease production capacity that exceeds 5 million pounds. Our state-of-the-art manufacturing processes, including the implementation of industrial internet of things AUTOMOTIVE POWER UTILITY INDUSTRIAL OFFICE AUTOMATION (IIOT) process monitoring systems and comprehensive lab testing of every APPLIANCE MEDICAL AEROSPACE IN-VACUUM MFG. batch, ensure the consistent, high-quality of every Nye product.

OTHER SERVICES

Not Genuine Without My Signature: By the 1890’s, Nye • Custom Application Testing • Multiple Packaging Options • Lubricant Sampling • Technical Support was filling, corking, packing and shipping more than 144,000 bottles of his oils monthly - enough bottles to keep 20 people • Lubricant Dispensing Support • Lubricant Failure Analysis • Pre-Qualification Lubricant Testing • Ultrafiltration at Pittsburgh’s Flint Glass Factories working full-time to • De-Aeration • Lubricant Profiling • Specialty Lubricant Formulation • Lubricant Education Nye Headquarters Building in 1929 produce bottles for the Nye account.

8 9 Nye Today Nye Today

PACKAGING NYE CHANNEL PARTNER NETWORK

We provide lubricants in the package that works best for the intended application process: From high volume application out of drums, pails and kegs, to automated precision dispensing out of syringes and cartridges, AFRICA JAPAN VOV International Co., Ltd. UNITED KINGDOM, Tsuchiya Co., Ltd. T. Kookot A. Lumlooka IRELAND, NETHERLANDS, to manual application from jars, tubes and pipettes. We also assemble EGYPT, LIBYA, LEBANON, Nagoya, Japan Pathumthani, Thailand BELGIUM, LUXEMBOURG lubricant kits, create blister packs, and private label any Nye product under JORDAN, SAUDI ARABIA +81-52-331-5451 +66-02-995-7470 Newgate Simms Ltd. customer brand names. Alpha Engineering & Trading Chester, England Cairo, Egypt Tsuchiya Tokyo EUROPE +44-124-466-0771 +20-2-2633-9984 Tokyo, Japan +81-3-5402-5451 TURKEY DENMARK, FINLAND, Antsan Import Export ULTRAFILTRATION SOUTH AFRICA, MAURITIUS NORWAY, SWEDEN MALAYSIA & Consultants Lubricorr Pty. Ltd. aVenture Group AB Dulub (Malaysia) Sdn. Bhd. Ankara, Turkey For extremely critical applications, Nye can ultrafilter lubricants in our Pretoria, South Africa Lindome, Sweden Penang, Malaysia +27-82-77-55-888 +46-(0)3144-3300 +90-312-480-70-52 cleanroom to remove particles down to the purity required by the application. +6012-402-9503 As a specialist in this field, we not only filter our own oils and greases, but ASIA/AUSTRALIA FRANCE LATIN AMERICA NEW ZEALAND Inland Europe-Neyco also offer this filtration service for lubricants from other manufacturers. Electropar Ltd. Paris, France MEXICO AUSTRALIA Greenmount East Tamaki +33-01-41-90-5050 TransAmerica Lubricants Hi-Tec Oil Traders Pty. Ltd. New Zealand de México S.A. de C.V. Castle Hill, Australia +09-274-2000 NYE LUBRICANTS IS A LEADER IN THE INNOVATION, FORMULATION, AND MANUFACTURE OF +61-2-9616-5700 GERMANY, AUSTRIA, Juárez, Chihuahua, México SWITZERLAND, HUNGARY, +52-656-170-0150, 51, 52 PAKISTAN, BANGLADESH, SYNTHETIC LUBRICANTS. IT COMBINES ITS INTEGRITY, PROVEN EXPERIENCE AND DEEP TECHNICAL CZECH REPUBLIC CHINA UNITED ARAB EMIRATES Newgate Simms TransAmerica Lubricants KNOWLEDGE TO SOLVE ITS CUSTOMERS’ TOUGHEST ENGINEERING CHALLENGES. NYE’S LUBRICANTS Dulub Shanghai Cinq Astre Enterprises Rosdorf, Germany Guadalupe, N. L., México Shanghai, China Lahore, Pakistan +49-6154-637677-46 +0181-8243-4352 ADD VALUE TO PRODUCTS IN A WIDE RANGE OF INDUSTRIES AND APPLICATIONS. +86-21-33500468 +00-92-425832361 ISRAEL TransAmerica Lubricants Dulub Shenzhen SINGAPORE, INDONESIA Petro-Tech Ltd. Miguel de la Madrid, Mexico Shenzhen, China Dulub Singapore Pte., Ltd. Holon, Industrial Area, Israel +52-333-686-65-85 +86-755-8297-0212 Singapore +972-3-6535000 +65-6734-3246 THEN & NOW Dulub ChingQing CENTRAL & ITALY SOUTH AMERICA Chongqing City, China SOUTH KOREA “We’ve changed over the years. Our lubricants, now synthetic, offer far more functionality than petroleum and a Tecnolube Seal, s.r.l. (except Brazil) +866-953-602-885 Dulub Korea Co., Ltd. San Pietro in Cariano TransAmerica Lubricants porpoise jaw oil ever could. Our application list, though it still includes watches, consists of devices not yet dreamed Daegu, South Korea Verona, Italy +52-656-170-0150, 51, 52 of in 1844: automotive instrumentation, antilock braking systems, medical devices, aerospace controls, computer Tschiya Trading (HK) Ltd. +82-53-600-8899 Hong Kong, China +390-45-770-2389 peripherals, in-vacuum manufacturing equipment and appliance timers to name a few. And now with our acquisition +852-2621-3220 TAIWAN POLAND by FUCHS Lubricants Company and joining the global FUCHS Group, our resources and global access to markets Dulub Co., Ltd. Newgate Simms Ltd. Tsuchiya Bejing Kaohsiung, Taiwan R.O.C. have taken a leap ahead. Toruń, Poland Beijing, China +886-7-5365500 +86-0411-3960-8781 +48-56-621-1919 But while our products and applications have changed, the principles upon which this company was founded haven’t Taipei City, Taiwan R.O.C. +886-2-2796-8401 changed that much in 170 years. Like William F. Nye, we specialize in lubricants for ‘delicate machinery.’ We develop INDIA, SRI LANKA SPAIN, PORTUGAL Prolutec, S.A. Anand Engineers Pvt. Ltd. THAILAND products to meet our customers’ specific needs. Most importantly, like our founder, we still stake our reputation on the Barcelona, Spain Anderi (East) Mumbai, India Tsuchiya Co., Ltd. quality of our products. Then and now, if it bears the name Nye, people expect nothing less.” +34-93656-6061 +91-22-2821-9292 Bangkok, Thailand +66-02-637-5859 - George Mock

10 11 12 Howland Road Fairhaven, MA 02719 USA Ph: +1.508.996.6721

Email: [email protected] BIHBRAND20181004