Star Wood

Dear friends,

Over the past year Starwood Manufacturing has developed into a thriving and dynamic company. During 2005, Starwood took several steps designed to improve and increase its production levels. First, Starwood relocated to its currentmanufacturing facility located at 2370 South Sheridan Way ,Mississauga, Ontario. This facility utilizes approximately 70,000 square feet of production area. In August 2005, Starwood took steps to expand its milling operations by acquiring a new high speed matcher, a used high capacity moulder, and 3 additionalchop saws which, once incorporated into the existing milling line increased the existing milling production out put from approximately 8,500 square feet per shift day to 12,500 square feet per shift day. And in September 2005, Starwood completed its acquisition of its state-of-the-art ultra-violet prefinishing equipment. In April 2006 the company installed an additional high speed laser optimized automatic chop saw that will increase milling production output to 20,000 square feet per single shift day. Starwood continues to takes steps in order for it to purchase additional production equipment and continuously increase production levels.

That puts Starwood in a leadership position in the Canadian market and makes us a strong, reliable partner for the future.

To many of our distributors and contractors we are known under the Marquise brand and we are truly grateful for your contribution in making our line of hardwood flooring a success. We've heard back from many of you commenting on our quality and precision, our knowledgeable sales staff and our commitment to your satisfaction. It gives me great pleasure to know that we've been able to provide a positive experience for our clients and on behalf of all of us at Starwood, I'd like to thank you for making us your top choice in all your projects. The future for Starwood Manufacturing looks bright as ever and we hope you'll grow with us and enjoy many years of continued success.

Regards,
Peter Prytula
President
Starwood Manufacturing INC

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