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Security

We have completed security vulnerability assessments (SVAs) and security improvement plans for all of our North American, European and Asian facilities, as well as for pipeline, international and land transportation. SVAs are under way in countries in South America, the Middle East and Africa, with targeted completion of the necessary security upgrades by June 2009.

Chemical Anti-Terrorism Standard (CFATS)—In late 2006, the U.S. Congress gave the Department of Homeland Security (DHS) authority to regulate the security of high-risk chemical facilities. The final Chemical Anti-Terrorism Standard (CFATS) was issued on November 20, 2007. Our security and process safety teams are actively engaged in this effort and identified 58 sites in the U.S. that may be covered by the regulation. "Top screens" have been completed and submitted to DHS. The security programs we have instituted since 9/11 should position us to comply with this new regulation with minimal additions.

THE LARGEST CYBER SECURITY EXERCISE EVER

cyber security exercise Air Products&#along with participants; from other major chemical companies and firms from the IT, telecommunications and transportation sectors—was involved in a national crisis drill during the week of March 10, 2008. Sponsored by the Department of Homeland Security’s National Cyber Security Division, the exercise, called Cyber Storm II, simulated large-scale coordinated cyber attacks against chemical plants and communication lines and was designed to test our major IT incident and crisis response procedures, safety and security response, and communications with other companies and agencies. The Department of Homeland Security will publish its findings, and the lessons learned will help us be better capable of responding to and recovering from a range of threats.

U.S. Customs Trade Partnership Against Terrorism (C-TPAT) and Free and Secure Trade (FAST) Programs—We continued our commitment to C-TPAT by enhancing key components of our existing program, including redesigning our global supply chain risk assessment and developing an online communication program to collect security data from our supply chain business partners. We also rolled out a comprehensive training module during 2007 to help our business teams successfully implement the program’s requirements.

Air Products also was certified into FAST in 2007, allowing our liquid hydrogen shipments from the Sarnia, Ontario, Canada facility to receive expedited entry into the U.S. This program has resulted in decreased delays at the border and increased driver productivity and fuel savings.