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There are alternatives on the extention... With a little handy work with a file you can convert one of the more common magnetic extentions that you can get at the hareware store, Lowes or Home Depot to work in a pinch...
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Yes, I did the same thing. Then I realized that I could only use standard hex bits in that extension. The double ended bits that come with the Leatherman, and ride with it in the bit-kit, will only work in the Leatherman extension. But the extension can also use standard hex bits. For me the added versatility was worth buying the Leatherman bit.
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I agree if your happy with the Leatherman and use it a lot, it would be worth the extra for it.
Viewed as tools, I'd rather use hex bits than those skinny Leatherman bits. But the Leatherman bit kit is a set of okay tools that are easy to store in a pouch right next to the Wave or Surge. For me the point of multi-tool is to be a convienient mini tool kit. So $12.00 for a dedicated bit extension is worth it to me.