NEWS RELEASE                                   OCTOBER 2007

Cartridge Market To Grow From $15 Billion This Year To $21 Billion In 2012

Led by the carbon segment, the market for cartridges which purify liquids will climb to $21 billion in 2012 up from $15 billion in 2007.  These are the latest forecasts in the McIlvaine Cartridge Filters: World Markets, a continually updated report with over 20,000 pages of analysis and forecast. 

Subject                         2007                 2012                                    

                                ($ Billions)         ($ Billions)   

Carbon                           6,904               10,165

Membrane                      3,711                 5,081

Metal                                 230                    290

Non-woven                    4,072                 5,649

String Wound                   192                    247

The residential market in Asia will lead the way with growth to over $2 billion by 2012 up from $1.3 billion this year.  With all the new Asian office building construction, the commercial institutional segment will grow from $400 million to $1.3 billion in 2012.

Carbon filters are either made of a porous carbon block or with fibrous media impregnated with carbon.  They are used in refrigerators, soft drink machines, and other commercial applications. They improve taste and therefore are increasingly used in commercial and residential applications.  Industrial companies are also finding the value of this cartridge type.

There will be strong growth in the market for membrane cartridges.  These cartridges remove particles over a wide range and are capable of removing sub-micron particles, bacteria and many viruses.  They are used in healthcare, pharmaceutical, semiconductor and other applications where ultrapure water is needed.

There are many improvements being made in non-woven cartridges as micro and nano fibers are being developed.  The smaller diameter fibers result in higher efficiency at comparable pressure loss. Chemical, food, healthcare, and many other industries utilize non-woven cartridges.

Metal cartridges are utilized where higher temperatures preclude the use of synthetics.  Food processors have chosen these filters for applications involving processes where terminal sterilization, food texture, or taste change is accomplished with heat.  The chemical and biotechnology industries also have hot applications.

String wound cartridges are inexpensive but do not have the performance characteristics for wide use.  They are used in paint and certain other applications where life expectancy is very short due to change in pigments or high solids loading.

There are more than 10,000 companies manufacturing cartridge filters worldwide.  There are smaller numbers of media manufacturers.  These in turn are supplied by the resin and fiber companies.

A number of large companies such as GE have entered this market place.  Consolidation for companies such as Pentair have also created large players in the field.  Nevertheless, the market is fragmented by geography, application, and product types.