LITTLE GIANT MANUFACTURING
105 DONNELL ST.
P.O. BOX 518
ORANGE, TX 77630
P: 800-231-6035
F: 409-883-9605

IMPORTANT CUSTOMER MEMORANDUM

ATTN: Our Valued Little Giant Mfg. Customers/Distributors

Please give this letter to your purchasing department.

From: Rex McCorquodale, President

Date: October 17, 2006

Copper is up 240% since January 2004. It is up another 100% since January 2005. Other metals are going up due to various reasons in this global market, and it affects all of us.

In our business Copper plays a major role. Many of our products are made of Brass or Bronze, where the main content is Copper. Red Brass products (fittings, valves, etc.) are up due to their 80-85% copper content. Not to mention our heater coils are made entirely of copper, which average about 55 pounds. Since Little Giant Mfg. is involved in many segments of this market, we find that cost increases vary with the different products that we manufacture. So as you can see, copper pricing has an enormous affect on our product pricing.

We have had some price increases over this past year, but not in direct relation to the copper price increase. Our list prices are still the same, but we have decided to incorporate a copper surcharge to help absorb some of the drastic price increases. We don't want to change the list pricing, so this surcharge is in affect from the date of this letter. The surcharge will be per unit sold, in reference to all Hotomatic heaters and coils. The surcharge as of October 17, 2006, is $85.00.

This surcharge is in affect until further notice. Obviously, if and when, the price of copper goes down, we will be more than happy to rescind the cost of this surcharge in congruence with the fair market value.

Thank you and God Bless,

Rex McCorquodale
President

Copyright © 2002-2007 Little Giant Manufacturing Co., Inc.