On the heels of February’s 7% decrease on all Laddawn stock items, we noted that
lower energy costs would likely recover and polymer costs were “certain to rebound.”
True enough; however, no one predicted the speed with which it happened. It took
just two months for polyethylene suppliers to reclaim all the pricing ceded since last
October. Today, as demand strengthens, producers are controlling supply better,
aided by a number of plant outages.

Prices on Laddawn-made and other domestically produced stock items have been
increased 4% in this catalog.

In the overseas markets, capacity, inventories and feedstock prices have remained
more consistent. As a result, we are pleased to note that pricing on nearly 900 of our
stock items, including all reclosables, imported layflat, gusseted and specialty bags,
will not change.

While we hold the line on pricing on nearly 40% of our stock items, it is an exciting
time to turn to Laddawn for custom items, too. Laddawn.com has made it easier
to price custom items and larger sized orders of stock items – made on demand at
lower prices. Better still, thanks to continued investment in new extrusion lines and
downstream equipment, we’re back to industry-best production lead times. Have you
looked to Laddawn for your custom or larger stock orders recently?

On the new products front, your response to our additions of Polypropylene Lip and
Tape and Tamper-Evident Bags and a renewed focus on Packing List Envelopes has
outpaced our expectations. You have told us that product performance is spot-on
while pricing and stock availability are helping you win and keep profitable business.

Finally, as the U.S. enters its eighty-fourth consecutive month of overall economic
growth, it seems implausible that the market for industrial packaging could be soft.
Yet, many of you have told us just that. The truth is, U.S. manufacturing did contract
for six consecutive months dating back to August. Today, however, there are reasons
to be optimistic. In a piece published in April by Institute for Supply Management
(ISM), for example, a majority of industries reported real growth in orders, exports,
capital purchases and production. Here’s to an exciting summer.

On behalf of all of us in Atlanta, Boston, Cedar Rapids, Dallas and Reno, thank you for
your business.

Ladd Lavallee and Dawn Seiple, Co-Presidents