May 30 , 2008

Dear Valued Customer:

Our industry continues to see additional cost increases from suppliers. From suppliers of fiberglass reinforcements, increases are a result of unbalanced demand and the closing of manufacturing facilities in the United States. Polyester film and resin manufacturers have announced increases resulting from cost escalation in resin components including benzene, styrene, ethylene glycol, and other petrochemicals. These costs are affected by record oil prices.

In addition, record Diesel prices have resulted in high surcharges on our inbound and outbound freight costs. Glasteel is currently absorbing the costs.

Our company continues implementing cost improvement 6Sigma projects. This allows us to maintain our competitiveness in the market while maintaining the highest quality standards. Currently, we are able to avoid double digit increases like many other products and commodities.

Due to factors mentioned above, Glasteel is implementing a price increase of approximately 5.75% on all FRP panels, adhesives, and accessories effective on orders July 1st, 2008. Please contact your Regional Sales Manager or Customer Service Representative with any questions or concerns.

Thank you for your business and cooperation during this volatile period. Please be assured that Glasteel will continue to provide you with quality products, superior customer service, and the most competitive price.

Sincerely


Javier Vasquez
Vice President Sales & Marketing

Next Page