News Release 1300

Despite the recession, the market for cartridges to purify liquids will rise in 2009 to $13.4 billion up 1 percent from 2008. The picture however is mixed with some geographical regions and some industrial segments showing revenue shrinkage. This new world total is based on the revision of 50,000 individual forecasts in the Cartridge Filters: World Market report published by the McIlvaine Company.

Until a few months ago McIlvaine was projecting a 6 percent cartridge revenue growth for the world and double-digit growth in China. The latest forecasts reflect the shrinking manufacturing output and postponement of capital investment. However cartridges are a consumable product. String wound cartridges can be replaced as often as once per hour, whereas membrane cartridges average more than one year of use. Therefore, the bulk of the sales are replacements. Furthermore, some of the largest end use markets are recession proof. Health care represents 8 percent of the total. Pharmaceutical revenues account for 12 percent of total sales.

The growing market in Asia will offset slowness in Europe. Each industry sector with the exception of electronics is projected to grow modestly in 2009.

Industry	2008	2009
Chemical	200.99	207.89
Commercial - Point of Entry	206.10	210.75
Commercial - Point of Use	584.00	595.70
Electronics	357.14	353.60
Food	173.44	184.48
Healthcare	242.52	252.73
Metals	67.34	66.90
Oil & Gas	85.61	85.61
Other Industries	194.41	198.56
Pharmaceutical	441.52	451.66
Power	86.87	93.03
Residential - Point of Entry	188.96	192.73
Residential - Point of Use	944.70	963.67
Wastewater (municipal)	79.06	85.67
Water (municipal)	226.71	237.09

The relatively poor quality of water delivered by municipal agencies in Asia has generated a substantial market for cartridges.

Revenues of major cartridge suppliers are reflective of the overall market. Pall reported sales up 3 percent for the first quarter 2009 (ended Oct. 31, 2008). Millipore reported sales of increases of 6 percent for its third quarter 2008. These are two of the leaders in a market which includes thousands of small and only a few large suppliers.

These forecasts are subject to continuing adjustment. General markets are more volatile and less predictable than at any time since McIlvaine started forecasting in1974. Until 2000, McIlvaine market reports were printed. Revenue forecasts were adjusted yearly. Now that these reports are online, they are adjusted as needed. In these volatile times quarterly revisions are both needed and supplied.