CEDAR RAPIDS UPDATE

Updated August 13, 2008: As our nickel team is working steadily to reduce the backlog caused by the flood and our maintenance department is devoting full time and attention to restoring our chrome plating department. Our chrome rectifiers have been very challenging to repair and those that didn’t survive the flood have been replaced. We are installing bussing to new rectifiers now. We have partial chrome plating capabilities at this time, but are focused on completing orders that were in-house when the flood occurred. We are very close to “flipping the switch” on the remaining portion of our chrome capacity and returning to full production—hopefully within a week. When we do, our capacity will improve, as we’ve made numerous upgrades during the course of our repair efforts. We have resumed work on our ZINC project, installing a new zinc barrel line and waste treatment processes. Our new zinc rack line installation will begin in the months to come. We hope to begin construction on our new offices very soon. As always, thanks for your patience and support.

Shannon Kelty
General Manager

July 14, 2008—We have one very positive accomplishment to announce—our nickel processing capabilities are up and running. We started plating customer parts today. We are continuing to address our chrome plating challenges. These are primarily electrical issues. Our electricians are working feverishly and we have ordered many new pieces of equipment. We hope to have more positive news relating to chrome plating in a few days. Electropolishing will take a bit longer to restore, as it must follow chrome. Thanks for your continued support.

Shannon Kelty

July 10, 2008—Most of our major flood clean-up has been accomplished. We are focusing on returning our equipment to an operational state. We hope to have at least a small amount of production capability within the next few days. Electrical system rebuilding and steam power have been major challenges. Our telephone calls are no longer being routed to San Antonio and our temporary office is staffed during normal business hours. We greatly appreciate the patience and well-wishing from our valued customers and vendors. Make no mistake; we will be back and better than before!

Shannon Kelty

Today, June 20, 2008, we are moving forward with the cleanup of our Cedar Rapids facility. We have an office trailer on site and are currently working to get electricity connected to the trailer. Our phone calls will continue to be routed to our Corporate office in San Antonio until we can get a new phone system in place. Determining the status of customer parts will be our priority today. We have received many phone calls regarding this issue and we hope to be able to address this today.

Again, we thank you for your patience.
Shannon Kelty
General Manager

Today, June 18, 2008, we have started cleaning the plant. We have ordered a temporary office trailer to be delivered this week. In the meantime, you can reach our corporate office at 877-284-3317. Call logs are provided to us regularly throughout the day, which will allow us to return your call as soon as possible.

Thank you,
Shannon Kelty
General Manager

Today, June 17, 2008, we were able to access the plant for the first time since the recent flood. Currently, we anticipate clean up and repairs to take about 2 weeks. If you have specific questions regarding an order or parts, please contact our corporate office at 877-284-3317. We will have someone from the Iowa plant call you back as soon as possible.

We thank you for your patience and understanding during this very trying time.
Shannon Kelty
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