To Our Valued Customers and Business Partners:

We are pleased to announce that Corro-Coat, Inc. (Corro-Coat) has recently acquired its affiliate, Chemrez, Inc (Chemrez), which will henceforth be a wholly-owned subsidiary of Corro-Coat. Both companies are substantially owned and managed by D&L Industries, Inc (D&L). The businesses of Chemrez and Corro-Coat were originally operating units of D&L for several years until they were spun off into separate companies in 1988 and 1989, respectively. Corro-Coat has been trading on the Philippine Stock Exchange since December 8, 2000.

We further wish to inform you that Corro-Coat has been renamed Chemrez Technologies, Inc. (CTI) in recognition of the expanded line-up of products and customer markets that will result from the new corporate structure. Corro-Coat is now the powder coating division of Chemrez Technologies, with the same people from production, technical and sales staff still serving your needs. Under our CTI corporate name we shall uphold our long-standing commitment to serve our custoemers with the highest level of quality for our market-leading line of Corro-Coat powder coatings and after-sales services.

Chemrez will continue to operate as a separate entity under CTI and will produce and market its full line of polystyrene, unsaturated polyester and polymer dispersion (waterborne) resin products. Chemrez will likewise continue to be in the specialty chemicals business with its offerings of additives, colorants, extenders, solvents and oleochemicals.

CTI also operates the new state-of-art continuous process methyl ester plant that will produce 60 million liters per year of coco methyl ester as biodiesel. Our biodiesel has been extensively and rigorously tested and meets European, US and Philippine standards for biodiesel. CTI’s biodiesel is locally distributed under BioActiv brand and is exported to various countries.

We in the Corro-Coat organization look forward to grow together with you and remain your partner of choice in powder coatings. And with these recent developments that have transformed us into a company with diverse products and markets we hope that we can explore further business opportunities with you.