annual meeting may 10, 2007. annual highlights 2006 fiscal year (millions) 20062005 sales$230.6226.2...

ANNUAL MEETING

May 10, 2007

ANNUAL HIGHLIGHTS

2006FISCAL YEAR

(millions)2006 2005

SALES $230.6 226.2

NET INCOME 6.5 1.6 300%

EPS 0.29 0.07

SHAREHOLDERS” EQUITY $ 64.1 $ 56.2 14%

2006 ACCOMPLISHMENTS

Geographical Expansion

Rubber Compounding – North Carolina

South American Track Project

2006 ACCOMPLISHMENTS

Product Innovation

South America Track Fastening plus proto-type long reach clips

3rd Generation CBRN footwear in production & 4th generation in proto-type

1st CBRN Fireboot

2006 ACCOMPLISHMENTS

Efficiency & Stability

Rubber Compound Cycle Times

Improvements in Acton-Vale and Scotland Neck

Renewed Debt Facilities

PLANT TOUR

Tour is available online at:

http://www.airbossofamerica.com/agm-2007/tour/

FIRST QUARTER HIGHLIGHTS

1st QUARTER(millions)

2007 2006SALES $59.7 $61.1

GROSS MARGIN 6.4 8.3

EXPENSES 3.9 4.9

INTEREST 0.7 0.8

EBT $ 1.7 $ 2.7

FIRST QUARTER HIGHLIGHTS

Major Markets Improving

BELTING

RUBBER TRACK

MILITARY

RECENT NEWS

Rail Products

New Mexico Rail Runner Project• 77,000 Tie Project with New Tie Captive System

Continuation of South America with a 465,000 Clip Order

Newly Designed HD Insulator approved by BNSF

RECENT NEWS

AirBoss-Defense

Finalizing an order for $3 Million AMG

Letter of Intent for $6.4 million Gas Masks with an option for $3.2 million

RECENT NEWS

Rubber Compounding

Strategic Alliance Agreements with many of NA Leading Rubber Products Manufacturers in Various Market Segments

VIDEO

Video is available to view at:

http://www.airbossofamerica.com/agm-2007/video/

CHAIRMAN’S CLOSING COMMENTS

• AirBoss has been profitable since 1995• We continue to see growth for the future

As a result of the significant investments we have recently made we can grow compounding revenues by almost 50% with current capacity

Conveyor belting demand forecast to continue to grow Defense – finally getting orders! New products being developed

• Valuation Recent industry transactions would suggest that our shares are

significantly undervalued Sale of Goodyear industrial products @ 1x sales

CHAIRMAN’S CLOSING COMMENTS cont’d.

Recent transactions in the defense sector would value our defense division at close to $2 per share.

We will continue to work to improve our valuation

• New Dividend Policy Semi-annual dividend Initial 2.5 cents payable to shareholders of record June 30, 2007

QUESTION AND ANSWER PERIOD

FORWARD LOOKING STATEMENT DISCLAIMER

This report contains forward-looking statements, which reflect managements best judgment based on factors currently known but involve significant risks and uncertainties.

Actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including but not limited to risks more fully described in the “Risk Factors” section of the Company’s Annual Report, and other risks detailed in filings with the Ontario Securities Commission.

Forward-looking information provided pursuant to the safe harbor established by recent securities legislation should be evaluated in the context of these factors.

THANK YOU!

CUSTOMERS

SHAREHOLDERS

DIRECTORS

EMPLOYEES