Date: January 6, 2005
To: Valued Customers
From: Garland W. Jones
Re: Acquisition

On Thursday, January 6, 2005, System Plast USA, LLC, located in Sanford, North Carolina, consummated the purchase of 100% of the stock of Nolu Plastics, Inc. and its wholly owned subsidiary, Solus Industrial Innovations, LLC (Solus). System Plast USA’s parent company is System Plast S.p.A. located in Telgate (Bergamo), Italy. The acquisition of Solus and its integration into the System Plast Group is an opportunity for the Parent Company to accomplish its strategic goals more quickly and successfully.

Solus closed 2004 as its most successful year since the merger of Nolu Plastics and Valu-Engineering. We are committed to a process of continuous improvement as the means for continuing the company’s growth cycle. Customers will gain exposure to additional products and services through the integration process and benefit from a combined fifty years of product development and manufacturing experience in the field of Conveyor Components, Conveying Chains, and Modular Plastic Belts. As a larger, stronger and more versatile organization, company managers and employees are anxious to demonstrate how combining available resources can benefit your business.

Integrating resources, processes, and responsibilities is obviously a massive undertaking. A business integration team has been formulated, charged with the responsibility for recommending how major resources, assets, and processes will be combined to achieve the strategic goals of the company. We are sensitive to the needs of our customers and employees and are committed to keeping all parties informed on the transition process and updated with regard to prospective changes in policies and/or procedures.

Please call me directly with any questions or comments. I can be reached at (919) 589-3900 (Ext. 441) or at gjones@systemplastusa.com. Solus EU and UK operations are a direct report to Sergio Marsetti. Sergio can be contacted at s.marsetti@systemplast.com. On behalf of Solus and the System Plast Group Companies, we thank you for your business and extend our best wishes for continued business success in 2005!