Message from the President – January 12, 2010

As we enter our 51st year in business we leave behind a difficult year for our industry.  We have been blessed to increase revenues this year in spite of the industry’s challenges.  We leave behind 2009 saying “thank you” for your continuing show of confidence in us as suppliers.  We enter 2010 fully committed to continuous improvement and to live up to our Brand Promise- “Sell the right things, Sell things right”™.

While many have retrenched during 2009, we took proactive steps to improve many facets of our business.  Through scheduled events with SEA (Supplier Excellence Alliance) and continued Kaizen efforts, we have identified ways to improve our customer service by:

• Improving how, what and where we inventory for our customers.
• Taking steps to improve our order entry accuracy, assuring that customers get what they order with the required documentation, and on time.
• Achieving AS9120 and ISO9002 Certification at all of our locations and initializing NADCAP Certification for our Jasper facility.
• Expanding our footprint for handling specialty adhesives and film adhesives for the aerospace industry requiring “Zero Degree” storage and AS9120 certification. Beginning in February we will have the capacity to inventory and ship from not only our Fort Worth and Wichita locations, but also our Tulsa and High Point locations.

Another issue of interest is the added product qualifications for one of our key suppliers who manufactures aircraft sealants.  Throughout 2009, Royal Adhesives & Sealants has added key qualifications to AMS-S-8802, AMS-3281 and now most recently to Mil-PRF-81733.  Graco is an authorized packager of these products with the capability and capacity to supply these products in multiple kit sizes as well as in pre-mixed frozen (PMF) form for a number of products. We believe our relationship with Royal will provide you with new cost effective sealant alternatives in 2010.

We wish to thank our customers and suppliers for their patronage in 2009.  We consider these relationships partnerships as we look forward to the years ahead. We will ever strive to “Sell the right things.  Sell things right.”™