Continental Materials

MAY 7, 2008

Dear Valued Customer:

ORGANIC ROOFING FELT
EFFECTIVE SHIPMENTS: JUNE 1, 2008
TERRITORY: NORTHEAST & MID-ATLANTIC

Please be advised that the price of all Continental Organic Roofing Felt products into the Northeast and Mid-Atlantic regions will increase 10% effective with shipments June 1, 2008. Increased asphalt, transportation and manufacturing costs continue to drive production costs higher.

For actual pricing, product availability, or answers to any other questions you may have, please call your local CMI Sales Rep or Customer Service at 1-800-247-6637.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available.

For special job quotes, please call your local CMI Rep or CMI Customer Service at 1-800-247-6637. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service and Value everyday.

MAY 1, 2008

Dear Valued Customer:

CONTINENTAL ASPHALT
EFFECTIVE SHIPMENTS: MAY 12, 2008
TERRITORY: NORTHEAST/MID-ATLANTIC REGION
(VA, WV, MD, PA, NJ, NY, NEW ENGLAND)

Please be advised that the price of all Continental Asphalt products will increase 10% - 12% on shipments in these regions, effective with shipments MAY 12, 2008.

Raw material, energy and transportation costs continue to escalate and you should plan on further increases on all asphalt based products in the near future. Inventory and job planning will be critical at this time.

You will receive your actual market pricing from your local Continental Sales Rep.

All Domestic Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website @ www.continentalmaterials.com for more information, including test data.

For special job quotes, please call your local CMI Rep, or CMI Customer Service @ 800-247-6637. Continental Asphalt is "America's Fastest Growing Asphalt Supplier" with 8 locations serving the 42 Eastern United States. We thank you for your continued support and know our success depends on serving you, our customers, with Quality, Service, and Value everyday.

APRIL 30, 2008

Dear Valued Customer:

CONTINENTAL ASPHALT
EFFECTIVE SHIPMENTS: MAY 5TH, 2008
TERRITORY: SOUTH EAST REGION
(Georgia, Alabama, Mississippi, Louisiana, Carolinas, Tennessee, Kentucky)

Please be advised that the price of all Continental Asphalt products will increase 5% to 7% on shipments in the South East Region, effective with shipments May 5, 2008. You will receive your new delivered pricing from your local CMI Sales Rep.

All Continental Domestic Asphalt shipped in the South East is packaged in our Weather Seal White UV resistant packaging; this premium packaging is provided with no premium in price to our customers.

All Continental Domestic Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website @ www.continentalmaterials.com for more information, including test data.

For special job quotes, please call your local CMI Rep or CMI Customer Service @ 800-247-6637. Continental Asphalt is "America's Fastest Growing Asphalt Supplier" with 8 locations serving the 42 Eastern United States. We thank you for your continued support and know our success depends on serving you, our customers, with Quality, Service, and Value everyday.

APRIL 21, 2008

Dear Valued Customer:

CONTINENTAL ASPHALT
EFFECTIVE SHIPMENTS: MAY 1, 2008
TERRITORY: FLORIDA

Please be advised that the price of all Continental Asphalt products will increase $25.00 per ton on shipments in the State Of Florida only, effective with shipments May 1, 2008.

All Continental Domestic Asphalt shipped in Florida is packaged in our Weather Seal White UV resistant packaging; this premium packaging is provided with no premium in price to our customers.

APRIL 18, 2008

Dear Valued Customer:

FIBERBOARD INCREASE
NATIONWIDE
EFFECTIVE: MAY 5, 2008

Please be advised that there will be a price increase on Fiberboard products Nationwide effective with shipments May 5th, 2008.

All material must ship prior to that date to receive current pricing.

Continued increases in energy and transportation costs are driving production costs to unprecedented levels. We strongly suggest you plan for your inventory needs accordingly.

For special job quotes, revised pricing, or any other needs that may arise, please contact your local CMI Sales Representative or CMI Customer Service @ 1-800-247-6637.

While current shipping cycles are prompt, please plan accordingly for your spring needs as a busy spring roofing season is anticipated.

We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service, and Value everyday.

MARCH 26, 2008

Dear Valued Customer:

TERRITORY: NATIONWIDE

Please be advised that the price of all Continental Asphalt products will increase from 5% 7% per ton on shipments NATIONWIDE, effective April 7, 2008.

Some shipping markets already had an increase posted for March 31,2008, they will not have an additional increase at this time. However, we expect an additional increase to take place of 5% - 7% by the end of April . For your actual market pricing and effective increase dates please contact your local Continental Sales Rep or Customer Service. Plant availability may be limited so please plan accordingly.

MARCH 24, 2008

Dear Valued Customer:

TERRITORY: SOUTHEAST

Please be advised that the price of all Continental Asphalt products will increase $30 per ton in the listed areas effective with shipments March 31, 2008. This increase includes all markets serviced out of our Douglasville, Georgia and Tuscaloosa, Alabama shipping facilities.

As always, various markets will increase at different rates. Please contact your local CMI Territory Manager for detailed information.

This increase affects all asphalt products, including CARTONS, BUR-PAK, and BULK. All Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website at http://www.continentalmaterials.com for more information including new test data.

All Continental Asphalt in the Southeast is shipped in our Weatherseal packaging, this superior White U.V. resistant bag, keeps the asphalt dry and is safer for transportation to the jobsite, and will help the cartons store for a more a extended period of time in the yard without any cartons deterioration.

For special job quotes, please call your local CMI Representative or CMI Customer Service at 1-800-247-6637. Continental Asphalt is "Americas Fastest Growing Asphalt Supplier," with eight locations serving the 42 Eastern United States. We thank you for your continued support and know that our success depends on serving you, our customers, with Quality, Service, and Value everyday.

FEBRUARY 13, 2008

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will increase $25.00 per ton, in the State Of Florida only, effective with shipments February 25, 2008.

All Continental Domestic Asphalt shipped in Florida is packaged in our Weather Seal White UV resistant packaging, this premium packaging is provided with no premium in price to our customers.

JANUARY 28, 2008

Dear Valued Customer:

EFFECTIVE SHIPMENTS: February 11, 2008

TERRITORY: NORT EAST/MIDATLANTIC REGION

(VA, WV, MD, PA, NJ, NY, NEW ENGLAND)

Please be advised that the price of all Continental Asphalt products will increase from 5% - 10% per ton on shipments, in these regions only, effective with shipments February 11, 2008.

You will receive your actual market pricing from your local Continental Sales Rep.

JANUARY 28, 2008

Dear Valued Customer:

TERRITORY: SOUTH EAST REGION

(GA, AL, NC, SC, TN, KY)

Please be advised that the price of all Continental Asphalt products will increase 5% to 7% on shipments, in the South East region only, effective with shipments JANUARY 28, 2008.

You will receive your new delivered pricing from your local CMI Sales rep.

All Continental Domestic Asphalt shipped in the South East is packaged in our Weather Seal White UV resistant packaging, this premium packaging is provided with no premium in price to our customers.

JANUARY 18, 2008

Dear Valued Customer:

Please note that, effective January 21, 2008, pricing on all Continental felt into the Northeast and Mid-Atlantic areas will increase 12-15%.

For specific pricing in your area, please contact your local CMI Sales Rep or CMI Customer Service at 800-247-6637.

JANUARY 3, 2008

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will increase $10.00 per ton on shipments in the State Of Florida only, effective with shipments JANUARY 14, 2007.

This is in addition to the previously announced increase that went into effect December 10, 2007.

All Continental Domestic Asphalt shipped in Florida is packaged in our Weather Seal White UV resistant packaging, this premium packaging is provided with no premium in price to our customers.

JANUARY 3, 2008

Dear Valued Customer:

Please be advised that the price of all Continental Organic Roofing Felt products will increase $0.50 per roll effective with shipments JANUARY 14, 2008 . Increased asphalt, transportation and manufacturing costs continue to drive production costs higher.

For clarification on your actual increase date, product availability, or any other questions you may have, please call us toll-free at 1-800-247-6637.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available.

DECEMBER 21, 2007

Dear Valued Customer:

Please be advised that the price of all Continental VENEZUELAN Asphalt products will increase $25.00 per ton on shipments in the State Of Florida only, effective with shipments January 2, 2008.

DECEMBER 21, 2007

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will increase $10.00 per ton on shipments in the state Of Florida only, effective with shipments JANUARY 14, 2008.

This is in addition to the previously announced increase that went into effect December 10, 2007.

DECEMBER 17, 2007

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will increase $25.00 per ton on shipments in the South Central Region, effective with shipments January 14, 2008.

South Central Region . TEXAS, OKLAHOMA, KANSAS, ARKANSAS, LOUISIANA, MISSOURI, NEBRASKA, DAKOTAS, MINNESOTA.

All Domestic Continental Asphalt products are now available in our .NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website @ www.continentalmaterials.com for more information, including test data.

For special job quotes, please call your local CMI Rep, or CMI Customer Service @ 800-247-6637. Continental Asphalt is .America.s Fastest Growing Asphalt Supplier. with 8 locations serving the 42 Eastern United States. We thank you for your continued support and know our success depends on serving you, our customers, with Quality, Service, and Value everyday.

NOVEMBER 29, 2007

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will increase $25.00 per ton on shipments in the State Of Florida only, effective with shipments December 10, 2007.

All Continental Domestic Asphalt shipped in Florida is packaged in our Weather Seal White UV resistant packaging, this premium packaging is provided with no premium in price to our customers.

AUGUST 21, 2007

Dear Valued Customer:

Click below for details on our new Fiberboard promotion!

AUGUST 01, 2007

Dear Valued Customer:

We wanted to take this opportunity to remind everyone that August 1st, 2007 will be the 60-day mark until pre-existing Miami-Dade certifications are no longer valid. Continental Materials, Inc. has already obtained new approvals and is ready to take orders.

Please remember, because of the changes instituted by the Miami Dade County Building Code Compliance Office, we can no longer certify old product. All product shipped under our new certification will have noted 10/1/07 compliance right on the box as well as featuring new art and design work to eliminate confusion. If you're unsure about the status of some material you have, or have any questions regarding this change, please feel free to contact us.

Thank you.

JULY 11, 2007

Dear Valued Customer:

Please be advised that there will be a price increase on all Continental Bulk Asphalt in the Baltimore, MD area effective with pickups from 12:01AM on July 23rd on.

Raw material and production costs, along with transportation costs have contributed to this increase.

For specific pricing or job quotes, please contact your local CMI Sales Representative or CMI Customer Service at 800-247-6637.

APRIL 17, 2007

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT: ORGANIC ROOFING FELT
EFFECTIVE SHIPMENTS: May 1, 2007

Please be advised that the price of all Continental Organic Roofing Felt products will increase $0.50 per roll effective with shipments May 1, 2007. Increased asphalt, transportation and manufacturing costs continue to drive production costs higher.

For clarification on your actual increase date, product availability, or any other questions you may have, please call us toll-free at 1-800-247-6637.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available.

Sincerely,

Continental Materials, Inc
Peter J. Fischer Marty Boland
President Vice President Sales & Marketing

MARCH 22, 2007

Dear Valued Customer:

As you may already be aware, last year the Business Code Compliance Office of Miami-Dade County announced new rules and regulations regarding the approval and use of certain construction and building products. Among these products are 1-1/4" coil roofing nails, tin caps, and 10D tile nails such as the high quality ones provided by Continental Materials, Inc.

As always, quality is an important focus of every product we manufacture and supply and these new requirements will not change that. As Continental Materials, Inc. performs in-depth testing and research into any necessary changes to our products, we wanted to make you aware of how this may affect you, our customer. All company's wishing to carry Miami-Dade approval must become compliant by October 1, 2007. After this date, product manufactured prior to any necessary changes being made may become non-compliant, regardless of whether or not they are marked as approved right now.

So what does this mean to you? As previously mentioned, products manufactured prior to the start of compliance with the new program will no longer be Miami-Dave approved. Consequently, you will want to sell your current product inventory for use prior to October 1, 2007. We are currently in the testing and approval process and plan to have material compliant under the new system available shortly. We will be sure to distinguish on the cartons product that is newly approved for use. Additionally, part of the new requirements is that all manufacturers comply with calls for random testing. At any given time, someone from Miami-Dade County may request a box of product to have tested. This is done to ensure no product is being misrepresented as being higher quality than it actually is.

At Continental Materials, Inc., our customers come first and we have lived by our motto of Quality, Service, and Value for nearly 50 years. If you have any questions or concerns regarding these upcoming changes, we welcome you to contact us at any time.

Thank you,

DECEMBER 16, 2006

Dear Valued Customer:

Please be advised that our Douglasville, Georgia asphalt facility had a fire on December 13th. The most important thing is that no one was hurt. The fire started at night in one of the oxidizers and caused some collateral plant damage. Causal factors are being evaluated at this current time.

The paving business out of this plant is not affected at all, and will continue business as usual.

We expect the plant repairs to be completed within a few weeks and to be back fully operational by around January 1, 2007.

BUR SUPPLY FROM CMI IS NOT INTERUPTED. We have sufficient capacity/inventory from our Tuscaloosa shipping facility and all business activity will continue as expected with no interruptions.

It is business as usual regarding timely shipping, competitive pricing, and quality service.

CMI continues to offer BUR with our patented No Smell technology available in all CMI asphalt products.

We thank you for your continued support. Please feel free to direct any questions to me directly.

Continental Materials, Inc.
Peter J. Fischer

JULY 21, 2006

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will incur a 5% to 7% increase NATIONWIDE, effective with shipments August 7, 2006.

Different markets will increase at different rates, so please contact your local CMI Rep for your new pricing. All material that ships after that date will be invoiced at the new price. We have inventory to meet your current needs but please review your future needs as that scenario is rapidly changing.

This increase affects all asphalt products, including CARTONS, BURPAK, and BULK... both domestic and Venezuelan products. All Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website at http://www.continentalmaterials.com for more information including new test data.

Raw material and production costs, along with transportation costs, continue to increase with the recent run-up in Crude costs to the $70.00 per barrel range.

For special job quotes, please call your local CMI Representative or CMI Customer Service at 1-800-247-6637. Continental Asphalt is "Americas Fastest Growing Asphalt Supplier," with eight locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service and Value everyday.

JUNE 05, 2006

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will incur a 5% to 10% increase NATIONWIDE, effective with shipments July 5, 2006.

Raw material and production costs, along with increased transportation costs, continue to increase with the recent run-up in Crude costs to the $70.00 per barrel range.

For special job quotes, please call your local CMI Representative or CMI Customer Service at 1-800-247-6637. Continental Asphalt is "Americas Fastest Growing Asphalt Supplier," with eight locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service and Value everyday.

MAY 05, 2006

Dear Valued Customer:

Due to the continued rising costs of asphalts raw materials, please be advised we will have an additional increase on or about June 1, 2006 of 5% - 15% on all Continental Asphalt products nationwide. As asphalt prices move to unprecedented levels it will be critical to plan for your needs.

This increase is in addition to the May increases previously announced and now in effect.

While we don.t know the actual amounts, we feel it is important to provide you this information so you can plan your business accordingly and notify your customers as well.

Please contact your local CMI Sales Rep for your new delivered pricing.

We thank you for your continued support. We sincerely value your business, and hope to continue to earn you trust.

Continental Materials, Inc., "AMERICA.S FASTEST GROWING ASPHALT SUPPLIER."

MAY 03, 2006

Dear Valued Customer:

Please be advised that the price of Continental Asphalt will increase on May 8, and May 15 in the following markets;

MIDWEST REGION - Total Increase $55.00 per ton May 8, 2006

MID-ATLANTIC REGION - All Products $15.00 per ton May 8, 2006
MID-ATLANTIC REGION - Additional $55.00 per ton May 15, 2006

NORTH-EAST REGION - All Products $15.00 per Ton May 8, 2006
NORTH-EAST REGION - Additional $55.00 per ton on BUR-Pak May 15, 2006

The continued escalating cost of raw materials is driving asphalt prices to unprecedented levels. While we recognize the seriousness of these increases there is no option but to pass these increases along in the cost of our products.

Every indication is that there will be additional increases as long as the barrel of oil stays in the $70 range.

All orders must ship prior to those listed dates or the increase will be in effect.

We value your business greatly and will work hard to continue to supply you competitive quality products like No-Smell Asphalt.

Please call your local CMI Sales Rep for your new updated pricing.

APRIL 17, 2006

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will incur a 3% to 5% increase NATIONWIDE, effective with shipments May 8, 2006.

Different markets will increase at different rates, so please contact your local CMI Rep for your new pricing.

This increase affects all asphalt products, including CARTONS, BURPAK, and BULK... both domestic and Venezuelan products. All Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website at http://www.continentalmaterials.com for more information including new test data.

Raw material and production costs, along with increased transportation costs, continue to increase with the recent run-up in Crude costs to the $70.00 per barrel range.

For special job quotes, please call your local CMI Representative or CMI Customer Service at 1-800-247-6637. Continental Asphalt is "Americas Fastest Growing Asphalt Supplier," with eight locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service and Value everyday.

APRIL 07, 2006

Dear Valued Customer:

Please be advised that the price of all Continental VENEZUELAN Asphalt products will increase $25.00 per ton, effective with shipments April 24 2006. This covers all shipments in the state of Florida.

The price of asphalt went up 37% in Venezuela and material is in very tight supply.

Thank you for your continued support, if you have any questions please do not hesitate to contact CMI at 1-800-247-6637.

MARCH 14, 2006

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will increase $20 per ton in the Southeastern area effective with shipments March 27, 2006. This increase includes all markets serviced out of our Douglasville, Georgia and Tuscaloosa, Alabama shipping facilities.

As always, various markets will increase at different rates. Please contact your local CMI Territory Manager for detailed information.

This increase affects all asphalt products, including CARTONS, BUR-PAK, and BULK. All Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website at http://www.continentalmaterials.com for more information including new test data.

Raw material costs, production costs, and transportation costs continue to increase with the recent run-up in crude costs to the $60.00 per barrel range. Asphalt supply is at a critical level as certain key refineries have discontinued the production of the types of asphalts used in making roofing. At these times it is critical to advise your customers and to make sure you are dealing with suppliers that are prepared to meet the needs of the changing marketplace.

MARCH 10, 2006

Dear Valued Customer:

Please be advised of some adjustments in our fiberboard pricing effective with shipments April 3, 2006. In most areas there is no effect but we have made some adjustments based on continued rising transportation and energy costs.

All material must ship prior to that date to receive current pricing.

Continued increases in energy and transportation costs are driving production costs to unprecedented levels. We strongly suggest you plan for your inventory needs accordingly.

New market pricing will be in place as of 4/3/06. For special job quotes, revised pricing, or any other needs that may arise, please contact your local CMI Sales Rep., or CMI Customer Service @ 1-800-247-6637.

While current shipping cycles are prompt, please plan accordingly for your spring needs as a busy spring roofing season is anticipated.

We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service, and Value everyday.

MARCH 10, 2006

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will increase $20 per ton in the Northeast and Mid-Atlantic areas effective with shipments March 20, 2006.

As always, various markets will increase at different rates. Please contact your local CMI Territory Manager for detailed information.

FEBRUARY 8, 2006

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt products will increase from $10 to $25 per ton Nationwide, effective with shipments February 20,2006.

Various markets will increase at different rates. Please contact your local CMI Territory Manager for your new pricing.

This increase affects all asphalt products, including cartons, BUR-Pak, and bulk. All Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website at http://www.continentalmaterials.com for more information including new test data.

Raw material costs, production costs, and transportation costs continue to increase with the recent run-up in crude costs to the $60.00 per barrel range. Asphalt supply is at a critical level as certain key refineries have discontinued the production of the types of asphalts used to making roofing. At these times it is critical to advise your customers and to make sure you are dealing with suppliers that are prepared to meet the needs of the changing marketplace.

JANUARY 13, 2006

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL DOMESTIC AND VENEZUELAN ASPHALT
TERRITORY: FLORIDA
EFFECTIVE SHIPMENTS: JANUARY 23, 2006

Please be advised that the price of all Continental Asphalt products will increase $15.00 per ton, on shipments in the state of Florida only, effective with shipments January 23, 2005.

This increase pertains to all products, including CARTONS, BURPAK, and BULK. All Domestic Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website @ www.continentalmaterials.com for more information, including new test data.

Douglasville, Georgia, the 8th CMI asphalt facility, is now in full production servicing the state of Florida.

Raw material, production, and transportation costs continue to increase with the recent run-up in crude costs to the $60.00 per barrel range.

NOVEMBER 15, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL DOMESTIC AND VENEZUELAN ASPHALT
TERRITORY: FLORIDA
EFFECTIVE SHIPMENTS: N0VEMBER 28, 2005

Please be advised that the price of all Continental Asphalt products will increase $25 PER TON ON DOMESTIC AND AN ADDITIONAL $10.00 PER TON ON VENEZUELAN ASPHALT, effective with shipments NOVEMBER 28, 2005. This covers all shipments in the state of Florida.

Increased transportation and raw material costs continue to drive cost of asphalt to new higher levels.

Material remains in extremely tight supply so please plan accordingly.

Thank you for your continued support, if you have any questions please do not hesitate to contact CMI at 1-800-247-6637.

NOVEMBER 1, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL VENEZUELAN ASPHALT
TERRITORY: FLORIDA
EFFECTIVE SHIPMENTS: N0VEMBER 7, 2005

Please be advised that the price of all Continental VENEZUELAN Asphalt products will increase $25.00 per ton, effective with shipments NOVEMBER 7, 2005. This covers all shipments in the state of Florida. This increase is in addition to the previously announced increase of $10.00.

The price of asphalt went up $50.00 per ton in Venezuela and material is in very tight supply.

Thank you for your continued support, if you have any questions please do not hesitate to contact CMI at 1-800-247-6637.

OCTOBER 11, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL FIBERBOARD PRODUCTS
EFFECTIVE SHIPMENTS: OCTOBER 31, 2005

Please be advised that all Continental fiberboard pricing will increase by approximately 5% nationwide effective with shipments October 31, 2005. All material must ship prior to that date to receive current pricing.

Continued increases in energy and transportation costs are driving production costs to unprecedented levels. We strongly suggest you plan for your inventory needs accordingly.

Increased lead times, due to trucking issues caused by Katrina, and anticipated strong demand may stretch out lead times for delivery.

New market pricing will be in place as of 10/31/05. For special job quotes, revised pricing, or any other needs that may arise, please contact your local CMI Sales Rep., or CMI Customer Service @ 1-800-247-6637.

We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service, and Value everyday.

SEPTEMBER 19, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL ASPHALT
EFFECTIVE SHIPMENTS: OCTOBER 3, 2005
TERRITORY: NATIONWIDE

Please be advised that the price of all Continental Asphalt products will increase from 3% to 7% NATIONWIDE, effective with shipments October 3, 2005.

Various markets will increase at different rates. Please contact your local CMI Territory Manager for your new pricing.

This increase affects all products, including CARTONS, BURPAK, and BULK. All Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website at http://www.continentalmaterials.com for more information including new test data.

Raw material and production costs, along with increased transportation costs, continue to increase with the recent run-up in Crude costs to the $60.00 per barrel range.

For special job quotes, please call your local CMI Representative or CMI Customer Service at 1-800-247-6637. Continental Asphalt is "Americas Fastest Growing Asphalt Supplier," with eight locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service and Value everyday.

SEPTEMBER 12, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL FIBERBOARD PRODUCTS
EFFECTIVE SHIPMENTS: OCTOBER 03, 2005

Please be advised that all Continental Materials fiberboard products will increase approximately 6% nationwide, effective with shipments October 3, 2005. All material must ship prior to that date to receive current pricing.

Continued increases in energy and transportation costs are driving production costs to unprecedented levels. We strongly suggest you plan for your inventory needs accordingly.

Increased lead times due to trucking issues caused by Katrina, and anticipated strong demand may stretch out lead times for delivery.

New market pricing will be in place as of 10/3/05. For special job quotes, revised pricing, or any other needs that may arise, please contact your local CMI Sales Rep., or CMI Customer Service @ 1-800-247-6637.

We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service, and Value everyday.

AUGUST 31, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL ASPHALT
EFFECTIVE SHIPMENTS: SEPTEMBER 12, 2005
TERRITORY: NATIONWIDE

Please be advised that the price of all Continental Asphalt products will increase $10.00 per ton, NATIONWIDE, effective with shipments September 12, 2005.

This increase pertains to all products, including CARTONS, BURPAK, and BULK. All Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website @ www.continentalmaterials.com for more information, including new test data.

Raw material, production, and transportation costs continue to increase with the recent run-up in crude costs to the $60.00 per barrel range.

AUGUST 5, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL
VENEZUELAN ASPHALT
EFFECTIVE SHIPMENTS: AUGUST 15, 2005
TERRITORY: FLORIDA

Please be advised that the price of all Continental VENEZUELAN Asphalt products will increase $10.00 per ton, effective with shipments August 15, 2005. This covers all shipments in the state of Florida.

All Continental Asphalt products are now available in our "NO SMELL FORMULA." This new product is gaining a strong following for its ability to remove the odor from the asphalt at the kettle and on the roof. Please see our website at http://www.continentalmaterials.com for more information, including new test data.

Raw material and production costs, along with increased transportation costs continue to increase with the recent run-up in crude costs to the $60.00 per barrel range.

For special job quotes, please call your local CMI Representative or CMI Customer Service at 1-800-247-6637. Continental Asphalt is "America's fastest growing asphalt supplier," with eight locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service, and Value everyday.

JULY 19, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL ASPHALT
EFFECTIVE SHIPMENTS: AUGUST 1, 2005
TERRITORY: NATIONWIDE

Please be advised that the price of all Continental Asphalt products will increase $15.00 per ton, NATIONWIDE, effective with shipments August 1, 2005.

Raw material and production costs, along with increased transportation costs, continue to increase with the recent run-up in Crude costs to the $60.00 per barrel range.

For special job quotes, please call your local CMI Representative or CMI Customer Service at 1-800-247-6637. Continental Asphalt is "Americas Fastest Growing Asphalt Supplier," with eight locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service and Value everyday.

JULY 13, 2005

Dear Valued Customer:

JULY FIBERBOARD PROMOTION!!! Special fiberboard buy opportunity! All shipments through 7/29/05 are eligible for special truckload discounts in the form of merchandise gift certificates or trade discounts! For more information on this exciting promotion, please contact your local CMI Representative or CMI Customer Service at 1-800-247-6637.

Thank you for your continued support,

Continental Materials, Inc.

JUNE 28, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL ASPHALT
EFFECTIVE: SHIPMENTS JULY 11, 2005
TERRITORY: NORTHEAST
(PA, NJ, NY, CT, MA, RI, NH, VT, ME)
Please be advised that the price of all Continental Asphalt products will increase $15.00 per ton in the NORTHEAST, effective with shipments July 11, 2005.

This increase covers all asphalt products, including CARTONS, BURPAK, and BULK. ALL CONTINENTAL ASPHLT PRODUCTS ARE NOW AVAILABLE IN OUR NO-SMELL FORMULA.

Raw material costs, production costs, and transportation costs continue to increase with the recent run-up in crude costs to over $60.00 per barrel, putting increasing pressure on the price of asphalt.

For special job quotes, please call your local CMI Rep, or CMI Customer Service @ 1-800-247-6637. Continental Asphalt is "America's Fastest Growing Asphalt Supplier," with 8 locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service and Value everyday.

APRIL 09, 2005

Dear Venezuelan Asphalt Customers:

EFFECTIVE: MAY 13, 2005 & JUNE 6, 2005

Please be advised that the situation surrounding the supply of raw material in Venezuela remains in a state of disarray. Short supply of flux at the refinery level is raising the costs of producing asphalt in Venezuela drastically.

We are continuing to do all that we can, as the leading supplier of Venezuelan Asphalt for the last 20 years, to supply the market with a steady flow of material.

Costs to assure supply have risen drastically, and we must raise the price in the near future $20.00 per ton to continue our supply chain.

Regardless of purchase order date, all shipments effective May 13, 2005 will increase $10.00 per ton. A second increase will apply to all deliveries effective June 6, 2005.

During this period of rising prices, it is imperative that you continue to order ahead so that we will have enough material on hand to meet your needs. Orders not placed by the beginning of each month will be hard to cover based on our current policy of producing based on order log.

IF YOUR ORDERS ARE NOT PLACED PRIOR TO THE START OF THE MONTH WE WILL ASSUME YOUR ASPHALT NEEDS HAVE BEEN COVERED FROM OTHER SUPPLY.

Everyone at CMI thanks you for your continued support; feel free to call us at 1-800-24ROOFS or our Sales Representative Richard Kasper to answer any questions you may have.

APRIL 27, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL ASPHALT
EFFECTIVE: SHIPMENTS MAY 9, 2005
TERRITORY: NATIONWIDE
Please be advised that the price of all Continental Asphalt products will increase $10.00 per ton NATIONWIDE effective with shipments May 9, 2005.

This increase covers all asphalt products, including CARTONS, BURPAK, and BULK. All these products will soon be available in our "NO SMELL FORMULA."

Every indication shows that an additional increase will follow in June, so plan accordingly.

Raw material costs, production costs, and transportation costs continue to increase with the recent run-up in Crude costs to over $50.00 per barrel.

For special job quotes, please call your local CMI Rep, or CMI Customer Service @ 1-800-247-6637. Continental Asphalt is "Americas Fastest Growing Asphalt Supplier" with 8 locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service and Value everyday.

APRIL 04, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL ASPHALT
EFFECTIVE SHIPMENTS May 1, 2005
TERRITORY: MICHIGAN

Please be advised that the price of all Continental Asphalt products will increase $10.00 per ton, in MICHIGAN, effective with shipments May 1, 2005.

This increase includes all products including CARTONS, BURPAK, and BULK.

Raw material, production costs, and increased transportation costs continue to rise.

For special job quotes, please call your local CMI Rep, or CMI Customer Service @ Continental Asphalt is "Americas Fastest Growing Asphalt Supplier" With 8 locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service and Value everyday.

MARCH 02, 2005

Dear Valued Customer:

FIBERBOARD PRICE INCREASE
EFFECTIVE: April 4, 2005

Please be advised that all Continental Fiberboard Products will increase approximately 7% nationwide, effective with shipments April 4, 2005. All material must ship prior to that date to receive current pricing.

Continued increases in energy and transportation costs are driving prices higher. Last year was a very challenging year for fiberboard supply, we strongly suggest you plan for your inventory needs accordingly. Based on what we see, it is anticipated to be another strong demand year for fiberboard products.

New market pricing will be in place as of 4/4/05. For special job quotes, revised pricing, or any other needs that may arise, please contact your local CMI Sales Rep., or CMI Customer Service @ 1-800-247-6637.

We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service, and Value everyday.

FEBRUARY 28, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT

ORGANIC ROOFING FELT
EFFECTIVE SHIPMENTS: March 15, 2005

Please be advised that the price of all Continental Organic Roofing Felt products will increase $1.00 per roll effective with shipments March 15, 2005. Increased asphalt, transportation and manufacturing costs continue to drive production costs higher.

For clarification on your actual increase date, product availability, or any other questions you may have, please call our DISTRIBUTOR TOLL FREE LINE @ 1-800-24-ROOFS.

ANY CUSTOMERS WITH THE ABILITY TO TAKE RAIL DELIVERIES PLEASE CALL TO DISCUSS THIS OPPORTUNITY.

Asphalt prices at the refinery level continue to escalate as peak paving season and oil prices, prices continue to drive costs higher.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available to meet your needs.

For special job quotes please call your local CMI Rep, or CMI Customer Service @ 1-800-247-6637. We thank you for your continued support, and know our success depends on serving you, our customers, with Quality, Service and Value everyday.

Sincerely,
Continental Materials, Inc.

Peter J. Fischer Marty Boland
President Vice President Sales & Marketing

FEBRUARY 25, 2005

Dear Valued Customer:

PRICE INCREASE ANNOUNCEMENT
CONTINENTAL ASPHALT
EFFECTIVE SHIPMENTS March 7, 2005
TERRITORY: MID-ATLANTIC
MARYLAND/VA/W.VA./DELAWARE

Please be advised that the price of all Continental Asphalt products will increase $10.00 per ton in the MID-ATLANTIC TERRITORY, effective with shipments March 7, 2005.

This increase, includes all products including CARTONS, BURPAK, and BULK. All products will soon be available in our "NO SMELL FORMULA."

Raw material and production costs, and increased transportation costs continue to increase with the recent run-up in Crude costs to over $50.00 per barrel.

JANUARY 31, 2005

Dear Valued Customer:

Roof Odor Solutions and Continental Materials have entered into an exclusive agreement covering the use of Roof Odor Solutions "NO SMELL ASPHALT" additive. This additive is an odor suppressant that, when used correctly, will significantly reduce the smell and odor of asphalt. "NO SMELL ASPHALT WILL ONLY BE AVAILABLE THROUGH CONTINENTAL MATERIALS."

This solution is not a masking agent like other products on the market, but an odor suppressant that acts at the molecular level to retard the release of specific odor compounds in the asphalt. Encapsulating asphaltines, the additive stops the evaporation of lighter petroleum molecules eliminating fumes.

Peter J. Fischer, President of Continental Materials says, "This is an exciting time for us to further enhance the value and opportunity to promote quality BUR systems for our customers. By utilizing the Roof Odor Solutions additive, our customers and contractors will be able to get back to selling the best roof on the market for the last 100 years a BUR roof. No costly fume recovery equipment or filtration systems will be needed, we will be able to add this to the asphalt at the plant level. We are aware of other products on the market that create a mask of the smell and fumes at the kettle level, our product will take the smell out at the kettle, and more important on the roof."

Early in 2005, Continental No Smell Asphalt will be available Nationwide out of all Continental shipping locations in Bulk and Carton forms.

With Roof Odor Solution's product our contractors will be able to sell the quality of BUR on schools and hospitals and not have to worry about the odor. Come learn more about this product at our booth (#1334) at the NRCA Convention coming up in Orlando.

NOVEMBER 1, 2004

Dear Valued Customer:

TERRITORY: SOUTHEAST
FLORIDA, GEORGIA, TENNESSE, ALABAMA, MISSISSIPPI, LOUISIANNA, ARKANSAS, S.CAROLINA, N.CAROLINA.

Please be advised that the price of all Continental Asphalt products will increase $10.00 per ton in the SOUTHEAST TERRITORY effective with shipments November 1, 2004.

Raw material, production costs, and increased transportation costs continue to increase with the recent run-up in Crude costs to over $50.00 per barrel.

For special job quotes, please call your local CMI Rep or CMI Customer Service @ 1-800-24-ROOFS. Continental Asphalt is "Americas Fastest Growing Asphalt Supplier" with 8 locations serving the 42 Eastern United States. We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service and Value everyday.

OCTOBER 1, 2004

Dear Valued Customer:

Please be advised that the price of ALL CONTINENTAL ASPHALT PRODUCTS WILL INCREASE $10 PER TON IN THE STATE OF FLORIDA, effective with shipment dates listed above.

All shipments must ship prior to October 1st to receive the current price levels.

Increased raw material, and significantly increased transportation cost necessitate this increase at this time.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available to meet your needs.

For special job quotes please call your local CMI Rep, or CMI Customer Service @ 1-800-247-6637. We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service and Value everyday.

SEPTEMBER 13, 2004

Dear Valued Customer:

AUGUST 30, 2004

Dear Valued Customer:

Please be advised all Continental Fiberboard Products will increase $5.00 PER MSF nationwide, effective with shipments October 4, 2004. All material must ship prior to that date to receive current pricing.

2004, has been a very challenging year for fiberboard supply. Recently we have experienced some extended lead times due to extremely strong demand. Please plan for your inventory needs accordingly.

New market pricing will be in place as of 10/4/04. For special job quotes, revised pricing, or any other needs that may arise, please contact your local CMI Sales Rep., or CMI Customer Service @ 1-800-247-6637.

We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service, and Value everyday.

Sincerely,
Continental Materials, Inc.

Peter J. Fischer Marty Boland
President Vice President Sales & Marketing

AUGUST 02, 2004

Dear Valued Customer:

Please be advised that the price of wood fiber insulation will increase in all markets effective with shipments AUGUST 2, 2004. Market pricing is being increased in varied amounts based on increased production and freight costs, and competitive situations. On average this increase is 5%. For your new delivered pricing, please call CMI Customer Service at 1-800-247-6637 or your local CMI Sales Rep.

NEW RULES FOR STOPOVERS AND DELIVERY - Effective April 5, the new stopover and detention rules went into effect. The stopover or drop charge on fiberboard deliveries increased to $100.00 per stop, up to 100 miles. All deliveries, including customer warehouse and yard, will only be allowed 2 hours free waiting and unloading time for the truck. All additional time after that will be charged at $75.00 per hour in quarter hour increments. The new trucking regulations require these actions in order for our carriers to be able to keep their trucks on the road and stay in business. If you have specific delivery requirements for your yard please specify at time of order to prevent these detention charges.

Thank you for your continued support and cooperation on all these changes. Please direct any questions, comments or concerns to the undersigned.

Sincerely,
Continental Materials, Inc.

Peter J. Fischer Marty Boland
President Vice President Sales & Marketing

JULY 12, 2004

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt Products will increase $15.00 per ton NATIONWIDE, effective with shipments July 12th. This includes all PACKAGED, BULK and BURPAK products. This is not to confused with the June increase, this is a second increase.

For clarification on your actual increase date, product availability, or any other questions you may have, please call our DISTRIBUTOR TOLL FREE LINE @ 1-800-24-ROOFS.

ANY CUSTOMERS WITH THE ABILITY TO TAKE RAIL DELIVERIES PLEASE CALL TO DISCUSS THIS OPPORTUNITY.

Asphalt prices at the refinery level continue to escalate as peak paving season and oil prices prices continue to drive costs higher.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available to meet your needs.

Sincerely,
Continental Materials, Inc.

Peter J. Fischer Marty Boland
President Vice President Sales & Marketing

JUNE 1, 2004

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt Products will increase $20.00 per ton NATIONWIDE, effective with shipments June 14, 2004. This includes all PACKAGED, BULK and BURPAK products.

For clarification on your actual increase date, product availability, or any other questions you may have, please call our DISTRIBUTOR TOLL FREE LINE @ 1-800-24-ROOFS.

ANY CUSTOMERS WITH THE ABILITY TO TAKE RAIL DELIVERIES PLEASE CALL TO DISCUSS THIS OPPORTUNITY.

The recent run-up in the barrel of oil to the $40.00 price range, combined with continued uncertainty in supply, has seen asphalt take substantial increases in raw materials well in excess of the pricing that exists today. Please be prepared for further increases.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available to meet your needs.

For special job quotes please call your local CMI Rep, or CMI Customer Service @ 1-800-247-6637. We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service and Value everyday.

Sincerely,
Continental Materials, Inc.

Peter J. Fischer Marty Boland
President Vice President Sales & Marketing

MAY 1, 2004

Dear Valued Customer:

Please be advised that the price of wood fiber insulation will increase in all markets effective with shipments June 1, 2004. Market pricing is being increased in varied amounts based on increased production and freight costs, and competitive situations. On average this increase is 7.5%. For your new delivered pricing, please call CMI Customer Service at 1-800-247-6637 or your local CMI Sales Rep.

NEW RULES FOR STOPOVERS AND DELIVERY - Effective April 5 the new stopover and detention rules went into effect. The stopover or drop charge on fiberboard deliveries increased to $100.00 per stop, up to 100 miles. All deliveries, including customer warehouse and yard, will only be allowed 2 hours free waiting and unloading time for the truck. All additional time after that will be charged at $75.00 per hour in quarter hour increments. The new trucking regulations require these actions in order for our carriers to be able to keep their trucks on the road and stay in business. If you have specific delivery requirements for your yard please specify at time of order to prevent these detention charges.

Thank you for your continued support and cooperation on all these changes. Please direct any questions, comments or concerns to the undersigned.

Sincerely,
Continental Materials, Inc.

Peter J. Fischer Marty Boland
President Vice President Sales & Marketing

MARCH 8, 2004

Dear Valued Customer:

Please be advised that the price of wood fiber insulation will increase in all markets effective with shipments April 5, 2004. Market pricing is being increased in varied amounts based on increased production and freight costs, and and competitive situations. For your new delivered pricing, please call CMI Customer Service at 1-800-247-6637 or your local CMI Sales Rep.

NEW RULES FOR STOPOVERS AND DELIVERY -Effective April 5, 2004, the stopover or drop charge on fiberboard deliveries will increase to $150.00 per stop, up to 100 miles. All deliveries, including customer warehouse and yard, will only be allowed 2 hours free waiting and unloading time for the truck. All additional time after that will be charged at $75.00 per hour in quarter-hour increments. The new trucking regulations require these actions in order for our carries to be able to keep their trucks on the road and stay in business. If you have specific delivery requirements for your yard please specify at time of order to prevent these detention charges.

Thank you for your continued support and cooperation on all these changes. Please direct any questions, comments, or concerns to the undersigned.

Sincerely,
Continental Materials, Inc.

Peter J. Fischer Marty Boland
President Vice President Sales & Marketing

MARCH 1, 2004

Dear Valued Customer:

Asphalt materials and production cost continue to rise. Most areas of the country will have a second price increase in CONTINENTAL ASPHALT products on MARCH 1, 2004 of an additional $15.00 per ton. This is in addition to the February 2, 2004 increase.

This announcement is intended to keep you informed of the rapidly changing price structure in asphalt. All markets wont move at the same time or amount, but asphalt will certainly be higher in all areas of the country during the first quarter. Material may also be in tight supply in some areas.

For clarification on your actual increase date, product availability, or any other questions you may have, please call our DISTRIBUTOR TOLL FREE LINE @ 1-800-24-ROOFS.

ANY CUSTOMERS WITH THE ABILITY TO TAKE RAIL DELIVERIES PLEASE CALL TO DISCUSS THIS OPPORTUNITY.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available to meet your needs.

For special job quotes please call your local CMI Rep, or CMI Customer Service @ 1-800-247-6637. We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service and Value everyday.

FEBRUARY 2, 2004

Dear Valued Customer:

Please be advised that the price of all Continental Asphalt Products will increase $15.00 per ton NATIONWIDE, effective with shipment dates listed above. This includes all PACKAGED, BULK and BURPAK products.

For clarification on your actual increase date, product availability, or any other questions you may have, please call our DISTRIBUTOR TOLL FREE LINE @ 1-800-24-ROOFS.

ANY CUSTOMERS WITH THE ABILITY TO TAKE RAIL DELIVERIES PLEASE CALL TO DISCUSS THIS OPPORTUNITY.

The recent run-up in the barrel of oil to the Mid $30’s price range, combined with an unusually cold winter, has enabled refineries to utilize the heavy crudes used for asphalt production to produce Heating fuel at much higher returns than asphalt. When you combine this with the spike in Natural Gas prices from $4.00 to close to $7.50 per MMBTU, costs to produce all asphalt products will be significantly higher. NG is a key component in running asphalt and all roofing plants. As refineries start to look at the spring paving season when demand for asphalt peaks, we would expect a second increase to happen very quickly. We have already been notified of this by most refineries that supply our producing plants.

In order to cover your anticipated needs, prior to the increase date, we suggest that you place your orders as soon as possible so that sufficient inventory will be available to meet your needs.

For special job quotes please call your local CMI Rep, or CMI Customer Service @ 1-800-247-6637. We thank you for your continued support, and know our success depends on serving you our customers with Quality, Service and Value everyday.

FEBRUARY, 2004

CONTINENTAL ASPHALT- By now most of you have received notice of our February Asphalt price increase going into effect in most markets. The continued high price barrel of oil and rising natural gas prices will continue to push asphalt prices higher thru the winter. The same crude used for asphalt can be run for heating oil which is in high demand with the extreme weather the East has been having. By the time this demand slows down, a strong paving season will continue to put pressure on asphalt prices. Expect to see increase upwards of $30.00 per ton by March. For up to date price increase information please visit our website at www.continentalmaterials.com , and go to the announcements button.

FIBERBOARD INSULATION- How quickly things can change today. A few short weeks ago we reported that OSB prices had declined during December almost 50% to $215. The month of January has seen these prices recover back to $390 and heading back quickly to the FALL 03 high of $447. This will again put pressure on fiberboard plants to produce sheathing. Coupled with rising asphalt and energy costs, some forced maintenance issues at most fiberboard plants, expect to see inventory tighten, and prices trend higher in the near future. In some cases I would expect you will start seeing some extended delivery dates again, so plan accordingly.

CMI NAIL FUTURES- The situation on Foreign nail supply is very tenuous at best. The steel shortage of wire rod needed to make nails is real, and now. Material from all foreign producers is in very tight supply, and in some cases factories wont be able to honor their contracts on shipment or price due to the inability to get the wire rod. This steel is not produced in the US, but primarily in Korea, Russia, and Eastern Europe. They just have better alternatives for their steel production than wire rod for nails. Higher freight cost are also driving the pricing higher. Expect 2nd quarter supply to be tight and several dollars a box over 1st quarter. Our 46 years in this business puts us in a good position to work with our customers and suppliers to help meet everyone’s needs.

NEW AT CMI- In order to better serve our customers and suppliers we are pleased to announce the appointment of Dave Marden, effective January 28th, 2004 as our new Assistant Sales Manager. Dave will work under Marty Boland our VP of Sales and marketing and give CMI the solid inside bases to be the go to person for our customers and outside sales people to support special job prices, trouble shoot and overall improve our ability to better service our business partners. This is another commitment from CMI management to use our resources for the future.
NRCA TRADE SHOW COMING- Don’t forget to come visit our booth at the NRCA Trade Show in San Diego if you attend for February 22 thru 24.

Continental Materials, Inc.
Continental Plaza
1614 Old York Rd
Abington, PA 19001