As you know, First Quality has historically taken extensive measures to refrain from passing along price increases from our vendors to our valued customers — even when our competitors and the leading branded companies were increasing their prices. These measures have included investment in state-of-the-art machinery, implementation of aggressive cost savings programs and introduction of product enhancements; and when these measures were not enough First Quality has absorbed the incremental costs.

Unfortunately, despite working diligently in an attempt to prevent increasing prices, First Quality has been sustaining unprecedented escalating cost increases, including raw material, energy and transportation costs, which leaves us with no option but to pass along a price increase to our customers.

Your First Quality Sales Ambassador will be contacting you shortly to discuss the details of increases that will become effective with shipments September 15, 2008.

We appreciate your understanding and cooperation in implementing these cost adjustments during these extraordinary economic times.

First Quality