Most auto glass retailers understand the need to align themselves with others to secure their future. PPG has developed PPG PROSTARS as a tool to help them accomplish this. The non-integrated retail channel is an important avenue to the marketplace. The long-term viability of this channel is the reason PPG has developed and continues to invest in LYNX SERVICES, and why we are investing in PPG PROSTARS.

Return on investment is a key consideration in evaluating PPG PROSTARS. Before any auto glass retailer invests in PPG PROSTARS, they should calculate a payback based on the jobs per year their investment will need to generate, and the likelihood of achieving this volume. PPG PROSTARS is a tool to generate new work from promotion of the PPG PROSTARS brand to car owners, insurance companies and fleets.

PPG PROSTARS is a new approach to the auto glass retail industry. It is based on the premise that brands will be successful in after market automotive glass, just as they have been successful in most other after market automotive services. PPG PROSTARS offers participants an opportunity to create an "ingredient" brand that communicates to car owners that the associated retailer provides quality auto glass service.

The PPG PROSTARS brand mark is not designed to displace the glass retailer's established identity. It is meant to enhance it. PPG's name was incorporated into the brand mark because consumer market research clearly indicated that it gives credibility to the brand's promise of quality.

Some of the paraphrased comments from published reviews of the PPG PROSTARS Marketing Alliance Agreement have caused confusion among those trying to make an objective evaluation of the opportunity.

The PPG PROSTARS Marketing Alliance Agreement includes minimum purchase requirements for PPG manufactured products. Purchase of PPG manufactured product is part of the agreement to allow PPG to benefit from the risk and investment it is making. PPG's primary benefit from PPG PROSTARS will be a more secure retail channel for its products. PPG PROSTARS purchase requirements can be satisfied through any supplier of PPG after-market automotive glass products.

Much PPG PROSTARS discussion has centered on verification of purchase requirements. The agreement is written so that the standard practice will be for participants to self certify to PPG that they have met the requirement. A provision for independent verification has been provided for in the unlikely event that a discrepancy exists that cannot otherwise be resolved. We believe that the need for verification from an independent third party will be minimal. If it is needed, it will not provide PPG with any information other than a simple acknowledgment that the purchase requirements were either met or not met.

Omission of key words in paraphrases of the PPG PROSTARS agreement has false1y implied that PPG PROSTARS participants must bill through LYNX Services even if the work was not related to PPG PROSTARS work. The PPG PROSTARS agreement in no way limits participants from accepting and billing work through other networks from which the work originates. It also does not require jobs that are not affiliated with a PPG PROSTARS contract to be billed through LYNX Services. Administration of claims and collection of any applicable fees for PPG PROSTARS work will follow the same procedures currently in place for LYNX Services contracted work. The contract language is identical in the two agreements on these points. Currently LYNX Services participants pay no fees for over 95% of the work they receive from LYNX Services unless the invoice is submitted manually and a $7.50 fee then applies.

Finally, the indemnity clause in the agreement has been often quoted out of context to imply that PPG has no liability where it is at fault. The agreement clearly states that PPG is indemnified for claims "except those arising from and to the extent of the fault or negligence of LYNX Services and PPG".