Lehman Brothers 2007 High-Yield Bond Conference

Lehman Brothers 2007 High-Yield Bond Conference

March 27, 2007March 27, 2007

Forward-Looking StatementsForward-Looking Statements

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Our remarks that follow, including answers to your questions and these slides, include statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of our business to differ materially from those expressed or implied by such forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that such plans, intentions, expectations, objectives or goals will be achieved. Important factors that could cause actual results to differ materially from those included in forward-looking statements include: impact of competition; continued sales to key customers; possible fluctuations in the cost of raw materials and components; possible fluctuations in currency exchange rates, which affect the competitiveness of our products abroad; possible fluctuation in interest rates, which affects our earnings and cash flows; the impact of substantial leverage and debt service on us; possible loss of suppliers; risks related to our asset backed facilities; dependence on key personnel; labor relations; potential liability for environmental, health and safety matters; potential future legal proceedings and litigation; and other risks listed from time to time in the Company’s reports, including, but not limited to the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2006.

Company & Financial ReviewCompany & Financial Review

Bruce RoundsChief Financial Officer

Bruce RoundsChief Financial Officer

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Investment ConsiderationsInvestment Considerations

Strong and Strong and Experienced Experienced Management Management

TeamTeam

Market Leader Market Leader with Significant with Significant Installed BaseInstalled Base

Most Most Comprehensive Comprehensive and Innovative and Innovative

Product OfferingProduct Offering

Leading North Leading North American & American & European European

BrandsBrands

High Barriers to High Barriers to EntryEntry Extensive and Extensive and

Loyal Loyal Distribution Distribution

NetworkNetwork

Stable Industry Stable Industry with Significant with Significant

Replacement Replacement SalesSales

Growing Growing Revenue and Revenue and

Increasing Cash Increasing Cash FlowsFlows

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The CompanyThe Company

Alliance is the leading commercial laundry equipment manufacturer in North America

12/31/06 Net Sales and Adjusted EBITDA of $366.1 million and $63.2 million, respectively

Leading brand recognition in North America (“N.A.”) and Europe

39% N.A. market share

#1 in stand-alone N.A. commercial laundry equipment sales

Only manufacturer to offer full-line of products

Products sold through #1 or #2 distributors / route operators in over 80% of N.A. markets

Expanded global reach with European acquisition

Alliance continues to deliver stable and predictable cash flows

Approximately $13 million of net debt reduction in 2006

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Recent Developments – CLD AcquisitionRecent Developments – CLD Acquisition

Alliance Laundry Systems purchased the Commercial Laundry Division (“CLD”) from Laundry Systems Group (“LSG”) on July 14, 2006

Acquisition strategically enhances geographic scope, expands product offering and provides control of soft-mount technology

Total acquisition price, net of cash acquired, of $87.0 million(1) includes transaction and consolidation costs.

CLD stand-alone 2005 revenue and EBITDA of approximately $100.6 million(2) and $10.4 million(2), respectively

Alliance financed the acquisition with a combination of debt and equity in order to maintain existing leverage levels

$60.0 million add-on to the existing Term Loan Facility, along with a $5.0 million increase to the Revolving Credit Facility to maintain adequate liquidity

— Maturity and amortization schedules will remain the same as existing

$23.5 million in equity from Ontario Teachers Pension Plan and management (3)

$3.5 million in cash from operations

1. Includes $5.0 million for the consolidation of CLD’s US operations into our existing US operations.2. Exchange rate of $1.30 to €1.00.3. Includes existing management of Alliance and CLD.

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Leading North American and European BrandsLeading North American and European Brands

Largest installed base in North America

Building brand equity for nearly a century

Value Added Services Parts sales Service support Financing Laundromat Design

Multi-Unit Housing$127 million(1)

Apartments Condominiums

Universities

Military Installations

Load capacity: up to 18 lbs.

Laundromats$277 million(1)

Self-service wash and dry facilities

Approx. 35,000 locations

Load capacity: up to 80 lbs.

On-Premise$128 million(1)

Hotels Hospitals

Sports Facilities Prisons

Load capacity: up to 200 lbs.

Alliance Market Share #1 Alliance Market Share #1 Alliance Market Share #1

North American Stand Alone Commercial Laundry MarketNorth American Stand Alone Commercial Laundry Market(1)(1)

81. Management estimate

________________________

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2006 Market Share (1)

1. Management estimates.

Market LeadershipMarket Leadership

Leader in North America with greater than 2.0x market share of nearest competitor

Market Segment Rank Market Share(1)

On-Premise Laundries #1 55%

Multi-Housing Laundries #1 43%

Laundromats #1 30%

North America #1 39%

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Stable IndustryStable Industry

Industry CAGR of 3.3% from 2001 – 2006

Industry sales were modestly affected by the recession in 2001 and 2002

Source: Management estimates.

($ in millions)

($ in millions)

________________________

$452 $460 $472 $479$517 $532

$0

$100

$200

$300

$400

$500

$600

2001 2002 2003 2004 2005 2006

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Offer Superior Products Offer Superior Products and Servicesand Services

Develop and Strengthen Develop and Strengthen Key Customer Key Customer RelationshipsRelationships

Continue to ImproveContinue to ImproveManufacturing OperationsManufacturing Operations

Pursuing Strategic Pursuing Strategic Business OpportunitiesBusiness Opportunities

Core Growth StrategiesCore Growth Strategies

Continue introductions of innovative products and features with industry-leading performance

Added soft mount product design proficiency to our Engineering portfolio

Provide exceptional value-added services such as technical training, financing and store design

Expanded distribution network and international coverage with CLD acquisition

Relationships with key customers all exceed ten years

Ongoing enhancements in product quality and design

Consolidating North American manufacturing operations to leverage efficiencies in procurement, logistics, and product development and quality

Targeting acquisitions and strategic opportunities that:

Expand access to international markets Increase product differentiation to support

Alliance’s multi-brand strategy Expand sourcing initiatives – both ways

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Comprehensive and Innovative Product Offering Comprehensive and Innovative Product Offering

Industry leading product lines

Innovator in sophisticated electronic controls

Innovative product offerings

45 lb stacked tumbler dryer

Soft-mount technology proficiency

Only manufacturer to provide full product line

80 engineers, designers, and technicians

R&D spending of $35 million since 2002

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Extensive and Loyal Distribution NetworkExtensive and Loyal Distribution Network

600+ Global Distributors, Importers, and Route Operators

100 Route 100 Route OperatorsOperators

(Multi-Housing)(Multi-Housing)

LaundromatLaundromat150 150 DistributorsDistributors

On-PremiseOn-PremiseLaundryLaundry

200 200 DistributorsDistributors

International International (U.S. & (U.S. &

European European Operations)Operations)

210210DistributorsDistributors

AllianceAlliance

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Marianna ConsolidationMarianna Consolidation

October 12, 2005 committed a plan to close and consolidate Marianna design and manufacturing operations into Ripon, WI

Completion Q3 2006

Cash costs - $9.4 million

Estimated annual cost savings in excess of - $4.0 million

Ripon WIRipon WIRipon WIRipon WI

Before

After

Ripon WIRipon WIRipon WIRipon WI

Marianna Consolidation>$4.0 million savings

Marianna FL Marianna FL Marianna FL Marianna FL

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U.S. CLD ConsolidationU.S. CLD Consolidation

With the CLD Acquisition, committed to a plan to close and consolidate all of CLD’s U.S. operations into Ripon, WI

Estimated completion for consolidation – Q1 2007

Estimated cash costs - $5.0 million $1.8 million spent in 2006

Estimated annual cost savings in excess of - $4.0 million

Substantially complete as of January 31, 2007

Ripon WIRipon WIRipon WIRipon WI

Before

After

Ripon WIRipon WIRipon WIRipon WI

CLD Consolidation>$4.0 million savings

Panama City, FLPanama City, FL(Product Line) (Product Line)

Panama City, FLPanama City, FL(Product Line) (Product Line) Portland, TNPortland, TNPortland, TNPortland, TN

Fort Mill, SC Fort Mill, SC Fort Mill, SC Fort Mill, SC Louisville, KY Louisville, KY Louisville, KY Louisville, KY

Senior management average over 18 years of experience in the commercial laundry and appliance industries

Senior management is a significant equity holder Retained substantially all of CLD’s European management team

Management team has consistently improved operations and executed numerous strategic initiatives

Consolidation of manufacturing sites and design centers

Continued innovative product development

Developing alliances with key customers

Manufacturing cost reductions and quality improvement programs

Successful integration of strategic acquisitions

Strong and Experienced Management TeamStrong and Experienced Management Team

CEO, President

Controller

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2006 Revenue Mix – Continuing to Diversify2006 Revenue Mix – Continuing to Diversify

2005 2006

Revenue $317.3 $366.1

Adj. EBITDA(1) 60.4 63.2

% Margin 19.0% 17.9%

North American CLE Sales by North American CLE Sales by ChannelChannelBy SegmentBy Segment

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Consumer and Other

6%

European Operations

7%

North American

Commercial Laundry

Equipment 59%

Replacement Parts (US

Operations)12%

International Laundry

Equipment (US

Operations)16%

OEM / Dry Cleaning

5%

On-Premise23%

Multi-Housing

25%

Laundromats47%

(1) 2006 includes CLD operations from July 14, 2006 through December 31, 2006 and excludes $5.6 million of deemed EBITDA for period not owned.

.

Historical RevenueHistorical Revenue

Commercial Laundry Revenues Are Growing Commercial Laundry Revenues Are Growing

Over 75% of equipment sales are replacement CAGR of 6.2% from 2001 – 2006

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$247.5 $248.0 $261.3 $271.3$299.5

$345.4

$0

$75

$150

$225

$300

$375

2001 2002 2003 2004 2005 2006

Core Revenue Home Laundry Finance Company

$317.3

$254.0 $255.2$267.6 $281.0

$366.1

Consistent Adjusted EBITDA Consistent Adjusted EBITDA

Historical Adjusted EBITDAHistorical Adjusted EBITDA

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($ in millions)

(1) 2006 includes CLD operations from July 14, 2006 through December 31, 2006 and excludes $5.6 million of deemed EBITDA for period not owned.

(2) Re-entered lower margin U.S. consumer laundry business in October 2004..

$53.2

$59.0$58.3

$59.5$60.4

$63.2

20.9% 23.1% 21.8% 21.2% 19.0% 17.9%

$16.0

$32.0

$48.0

$64.0

2001 2002 2003 2004 2005 2006

0.0%

15.0%

30.0%

45.0%

Adjusted EBITDA Adjusted EBITDA Margin

(1)(2)

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Historical FinancialsHistorical Financials

Historical Financials & EBITDA Reconciliation Historical Financials & EBITDA Reconciliation

___________________________Source: 10Q filings.1. Reflects the difference between GAAP basis revenues and cash basis revenues related to Company’s off-balance sheet equipment finance program.2. Include executive retention costs, seller transaction costs incurred with business sale, consolidation costs, loss on foreign exchange hedge, loss on early extinguishment of debt,

and costs of a new asset backed facility.3. Includes non-cash incentive compensation expense, non-cash write-off of inventory step-up, and non-cash impairment of trademark and customer agreement.4. 2006 includes $5.6 million which has been deemed to constitute adjusted EBITDA for CLD prior to acquisition on July 14, 2006.

($ in millions)2002 2003 2004 2005 2006

Operating Statistics:Core Revenue $248.0 $261.3 $271.3 $299.5 $345.4Home Laundry Revenue $0.0 $0.0 $3.6 $8.5 $14.4Finance Company Revenue $7.2 $6.3 $6.1 $9.3 $6.3Total Revenue $255.2 $267.6 $281.0 $317.3 $366.1

% Growth 0.5% 4.9% 5.0% 12.9% 15.4%

EBITDA (GAAP Reporting) $40.5 $53.1 $45.1 $13.6 $47.4Adjustments:

Finance Program Adjustments(1) 1 3.4 3.0 (1.8) (0.3)Other Non-recurring Charges(2) 0.2 0.8 4.8 38.4 9.4Other Non-cash Charges(3) 0 0 5.6 10.2 6.7Infrequently Occurring Items 16.3 0 0 0 0Bain Management Fee 1.0 1.0 1.0 0.1 0Deemed Prior Qtrs for CLD Acq(4) 0 0 0 0 5.6

Adjusted EBITDA(4) $59.0 $58.3 $59.5 $60.4 $68.8% Margin 23.1% 21.8% 21.2% 19.0% 18.8%

Credit Statistics:Senior Debt / Adjusted EBITDA 3.1x 2.7x 2.2x 2.9x 3.2xTotal Debt / Adjusted EBITDA 5.3x 5.0x 4.5x 5.4x 5.4x

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Quarterly Operating SummaryQuarterly Operating Summary

Alliance 2006 Quarterly FinancialsAlliance 2006 Quarterly Financials

___________________________Source: 10Q filings.1. Reflects the difference between GAAP basis revenues and cash basis revenues related to Company’s off-balance sheet equipment finance program.2. Include executive retention costs, seller transaction costs incurred with business sale, consolidation costs, loss on foreign exchange hedge, loss on early extinguishment of debt,

and costs of a new asset backed facility.3. Includes non-cash incentive compensation expense, non-cash write-off of inventory step-up and non-cash impairment of trademark and customer agreement.4. Includes $2.8 million increase for Q1 and Q2, which amount has been deemed to constitute the quarterly adjusted EBITDA for CLD.

($ in millions) 2006 Fiscal Quarter Ended Fiscal Year EndedQ1 Q2 Q3 Q4 12/ 31/ 2006

Net Revenues:Commercial and Consumer Laundry $60.3 $76.3 $83.0 $100.8 $320.4Service Parts $11.2 $10.7 $12.1 $11.7 $45.7

Total Revenue $71.5 $87.0 $95.1 $112.5 $366.1

Gross Profit 18.5 20.1 20.9 28.2 87.7 % Margin 25.9% 23.1% 22.0% 25.1% 24.0%

EBITDA (GAAP Reporting) $9.6 $10.6 $10.5 $16.7 $47.4% Margin N/A 12.2% 11.0% 14.8% 12.9%

Adjustments:

Finance Program(1) 0.1 0.8 (1.1) 0.0 (0.3)

Non-recurring charges(2) 1.4 3.8 2.9 1.2 9.4

Non-cash charges(3) 2.7 0.5 2.8 0.7 6.7

Deemed prior quarters for CLD Acq.(4)2.8 2.8 0.0 0.0 5.6

Adjusted EBITDA(4)$16.6 $18.5 $15.1 $18.6 $68.8

% Margin 23.2% 21.3% 15.9% 16.5% 18.8%

Capital Expenditures $1.4 $1.0 $1.6 $2.2 $6.2Total Debt $326.9 $325.3 $379.6 $376.1 $376.1

Balance Sheet SummaryBalance Sheet Summary

Alliance 2006 Financial Position Summary Alliance 2006 Financial Position Summary

Approximately $13 million of net debt reduction during 2006 after considering $60 million of new term debt

2006 Year End Leverage of 5.42x

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(1) Total Consolidated Debt as defined in our Senior Credit facility which includes unrestricted cash from European operations up to $3.0 million.

(2) 2006 includes $5.6 million which has been deemed to constitute adjusted EBITDA for CLD prior to acquisition.

.

($ in millions) 12/ 31/ 2005 12/ 31/ 2006

Balance Sheet Data:

Revolver $0.0 $0.0Senior Credit Facility $177.0 $224.0Senior Subordinated Notes $149.3 $149.4Other Long Term Debt / Cap Lease Oblig. $0.0 $2.7Unrestricted Cash in Foreign Sub. $0.0 ($3.0)

Total Consolidated Debt (1) $326.3 $373.1

Adjusted EBITDA(2) $60.4 $68.8

Total Debt / Adjusted EBITDA 5.40x 5.42Covenant <6.50x <5.75x

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Investment ConsiderationsInvestment Considerations

Strong and Strong and Experienced Experienced Management Management

TeamTeam

Market Leader Market Leader with Significant with Significant Installed BaseInstalled Base

Most Most Comprehensive Comprehensive and Innovative and Innovative

Product OfferingProduct Offering

Leading Global Leading Global BrandsBrands

High Barriers to High Barriers to EntryEntry Extensive and Extensive and

Loyal Loyal Distribution Distribution

NetworkNetwork

Stable Industry Stable Industry with Significant with Significant

Replacement Replacement SalesSales

Growing Growing Revenue and Revenue and

Increasing Cash Increasing Cash FlowsFlows