Tennant Company Rejects Karcher’s Charges of False Advertising; Stands Behind Effectiveness of ec-H2O™ Technology

Tennant Company (NYSE: TNC), a world leader in designing, manufacturing and marketing of solutions that help create a cleaner, safer, healthier world, today strongly defended its advertising against recent claims filed by Germany-based Karcher and affirmed the effectiveness of its patented ec-H2O™ water-based cleaning technology: "We are vigorously defending our company, technology and advertising against these baseless claims by a competitor,” said Chris Killingstad, Tennant Company’s president and chief executive officer. "We find it interesting that Karcher would attack our ec-H2O advertising now, after we have been in the marketplace for three years, satisfied thousands of customers and have 2011 projected sales of $130 million to $140 million.”

This innovative technology has been tested by independent third parties and by Tennant’s customers, who include many of the world’s largest professional facility services providers. "In industries such as retail, warehousing, education and others, our customers have found that Tennant’s ec-H2O technology cleans their floors well in many day-to-day situations,” stated Killingstad. "Its effectiveness has been validated in laboratories and in the field. Our customers also want to use less water and fewer chemicals, save money and improve productivity. Tennant’s ec-H2O technology delivers on all of these points. Our customers know it works because they have tested it and used it for themselves.”

Added Killingstad: "Tennant Company has a long 141-year history and is a cleaning industry leader in innovation. We take pride in the integrity of our business and in the value of our products. We strongly condemn any attempt to discredit our reputation or disparage our technology.”

Karcher’s Attacks are Unwarranted and Flawed

Despite assertions in Karcher’s own report that there is no "fully appropriate standard” for testing automatic scrubbers, Karcher bases its claims against Tennant’s advertisements on flawed tests from one laboratory in Germany. Its allegation that ec-H2O "does not have a cleansing effect” is refuted by Tennant’s testing and three years of customer testing and experience as well as by findings in Karcher’s own report to the effect that ec-H2O performed identically to chemically based detergent in three out of four soil samples. Moreover, the Karcher-sponsored tests were applied to unrealistic soil samples and failed to control for certain key variables.

The Patented Science Behind Tennant’s Water-Based Cleaning Technology is a Significant Advance Over Traditional Automated Floor-Scrubbing Methods

Water-electrolysis technology is a well-established science that has been known for over 150 years. It has been used in a variety of industries and cleaning applications. In electrolysis, an electric current is applied to water, separating it into its acidic and alkaline components. Tennant’s patented new applications of electrolysis technology are revolutionizing the floor-cleaning industry.

Tennant’s ec-H2O harnesses electrolysis for use in cleaning applications by combining it with microbubbles of oxygen to create a revolutionary cleaning agent, all while using up to 70 percent less water than traditional automatic scrubbers. This technology is a significant advance over traditional automated floor-scrubbing methods that have historically required the addition of general-purpose floor cleaning chemicals, which add cost and complexity.

Based on its technical contributions to the adaptation of this technology, Tennant has at least 30 published patent applications in the United States relating to electrolysis, at least 10 of which currently have been granted or allowed by the U.S. Patent and Trademark Office. Tennant also has at least 20 published international patent applications and at least 25 applications published in individual foreign countries relating to electrolysis, at least four of which have been granted, including two patents in China and two patents in the European Patent Office.

Customer Experience Confirms that ec-H2O Technology Works Well

Due in part to the great variability in soil and flooring materials and conditions, many customers consider their own onsite testing and experience as the most relevant factor for their significant purchasing decisions. Large professional facility customers have been converting to Tennant ec-H2O scrubbers after conducting their own analyses and tests of the product’s effectiveness. These sophisticated customers often purchase fleets of dozens or hundreds of scrubbers, each costing thousands of dollars. Their own reputations depend upon delivering results. Customers routinely conduct side-by-side comparison tests of ec-H2O equipment and their existing equipment before buying Tennant’s ec-H2O scrubbers. They have approved the ec-H2O technology with their purchases and with their public statements.

ARAMARK, a world leader in professional facilities services, has endorsed Tennant’s ec-H2O platform and on March 28, 2011, ARAMARK announced its introduction of "an environmentally friendly ‘Blue Cleaning’ program to its custodial management customers across North America,” using Tennant’s water-based technology, including ec-H2O. It did this after a six-week test program conducted onsite at several universities and school districts, convention centers and businesses across the United States.

Further, global facility services provider ISS stated in its 2010 Corporate Responsibility Report that ec-H2O "eliminates the use of chemicals for normal daily cleaning. In addition, the technology also significantly reduces water consumption and CO2 emissions. ISS and Tennant have carried out pilot projects at several ISS customer sites and the results from these pilot projects have proven the effectiveness and savings potential. As a result, ISS has purchased over 275 machines with the ec-H2O technology in the second half of 2010.”

Among other customer testimonials and videos are UGL-Unicco and Target Center.

Tennant’s Independent Third-Party Tests Confirm ec-H2O Effectiveness

Tennant has commissioned independent third-party laboratory tests and has conducted in-house tests to verify the cleaning action of its ec-H2O technology. The results of these tests show that ec-H2O technology cleans as well as or better than general-purpose floor cleaners in the applications for which ec-H2O is intended. One important aspect of this testing was that ec-H2O delivered these cleaning results at a significantly lower water flow rate.

Tests on the effectiveness of ec-H2O have been conducted by independent third parties, including Elliott Affiliates Inc. and Aspen Research Corporation:

• The Elliott study compared a Tennant ec-H2O floor scrubber to the same type of scrubber (Tennant Model 5680) using a conventional chemical cleaner. The test shows that on multiple attributes (organic and bacterial load reduction, visual appearance, and water and chemical usage reduction) in a real-world bottling plant, Tennant’s "ec-H2O system delivered more consistent soil and contamination load removal over the course of the study” than the scrubber using a conventional chemical-cleaning solution.
• Aspen Laboratories compared ec-H2O to traditional daily chemical floor cleaners on four types of soils. The study concluded that based on the test results, ec-H2O "consistently cleans as well as and, more often, better than general-purpose cleaners.”

Industry and Business Awards

Since its introduction in 2008, Tennant’s ec-H2O technology has received numerous international industry and business honors for its innovation and sustainability, including:

• ISSA Innovation Award – 2007, the leading cleaning industry association
• R&D Magazine Top 100 Award – 2008, Most Technologically Significant Innovations
• Australia Business Award – 2008, Best Eco-Friendly Product
• Tekne CleanTech Award – 2008, Minnesota High Tech Association
• European Business Award – 2009, Innovation Category
• Premier Healthcare Innovation – 2009
• Sustainable Industries – Green Building Products TOP 10 2009

Growing a Sustainable Platform

Sales of scrubbers equipped with Tennant's ec-H2O technology grew approximately 85 percent in the 2011 second quarter compared to the 2010 second quarter. In the first six months of 2011, sales of scrubbers equipped with ec-H2O totaled $67 million and Tennant expects 2011 full year ec-H2O sales in the range of $130 million to $140 million.

"We’re very pleased with the ec-H2O growth we’ve achieved to date. Tennant is committed to providing our customers with the most innovative cleaning technologies, products and solutions to meet their needs. Our ec-H2O platform is a testament to that commitment and it is only the beginning. Tennant is aggressively investing in a variety of water-based and other sustainable cleaning technologies to continue our reputation as the floor-cleaning innovation leader,” concluded Killingstad.

Company Profile

Minneapolis-based Tennant Company (NYSE: TNC) is a world leader in designing, manufacturing and marketing solutions that help create a cleaner, safer, healthier world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; chemical-free and other sustainable cleaning technologies; and coatings for protecting, repairing and upgrading floors. Tennant's global field service network is the most extensive in the industry. Tennant has manufacturing operations in Minneapolis, Minn.; Holland, Mich.; Louisville, Ky; Uden, The Netherlands; the United Kingdom; São Paulo, Brazil; and Shanghai, China; and sells products directly in 15 countries and through distributors in more than 80 countries. For more information, visit http://www.tennantco.com.

Forward-Looking Statements

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