| IMPORTANT NOTICE 24 June 2008 Dear Valued Customer: Due to the high demand for roofing materials and the rising costs of oil, Allen Roofing cannot guarantee any quoted prices for more than 15 days or the availability of any particular manufacturer. With the many severe storms experienced throughout the country this year (hail, tornadoes, pounding rain) the demand for roofing materials has created a major shortage in this area. The manufacturers are allocating their deliveries creating long wait times for deliveries. For this reason, shingle selections may be limited or substitutions necessary. Also, the rising costs of oil have made the costs of shingles skyrocket, as well as suppliers imposing fuel surcharges on every truckload. We are subject to time of shipment prices, which is beyond our control. In addition, most of our bids are based on installing a 15 lb. felt paper underlayment. Due to the unpredictable market, 15 lb. felt is becoming more and more scarce and it may be necessary to upgrade to a 30 lb. felt at an additional charge. Your estimator will make you aware if this situation should arise. Allen Roofing will continue to remain competitive and strive to meet our customer’s needs, but unfortunately may be unable to guarantee availability and pricing during this crisis. Sincerely, Allen Roofing 24 June 2008 IMPORTANT NOTICE TO BUILDERS Dear Valued Customers and Friends: Allen Roofing has been trying to determine if there is any end in sight to the current petroleum price increases as well as the high demand for roofing products due to severe weather, such as hail, tornadoes, and pounding rains across the country. Because of these factors, our major manufacturers, GAF-ELK, Owens Corning, and Tamko, have increased our prices seemingly on a weekly basis. With the next announced increase for the end of June, we will have had over a 70% increase in materials since February 2008 alone. We are also faced with all manufacturers implementing fuel surcharges to offset higher costs of freight. In addition, the manufacturers have begun allocating supplies creating long wait times for deliveries and unfortunately may be unable to guarantee availability of products. This will almost certainly make substitutions necessary. Due to the volatile market and rapidly increasing costs, we are forced to pass on the same policy that we are faced with: pricing at the time of shipment. We are aware of what all builders are facing in this housing market and can sympathize. Allen Roofing has done everything in our power to keep from raising our prices since May 1, 2006. We have absorbed all increases in labor, delivery costs, and rapidly escalating material costs since that time. We are in the process of determining not whether-or-not, but at what level the increase will be. You know we value your business very much, but we cannot continue at the present pricing and remain viable, therefore effective July 15, 2008 we have no other choice but to pass on these increases. Please find enclosed our May 1, 2006 per-square price sheet and our July 15, 2008 per-square price sheet. We find it impossible to arrive at a straight percentage across the board when labor is a larger part of the cost on steeper pitched roofs than on lower pitched. Therefore, you can see the lower the pitch, the higher the percentage of increase. You can review both per-square price sheets to determine an average percentage of increase. At this time we ask for you to contact us as soon as possible with a list of models that you would like current pricing, or if easier a list of models no longer active, and we will furnish current pricing per model. We are currently working with the only manufacturer we found to still be aggressive in our market, IKO. As you will see in our per-square price sheet there is a substantial savings. We are enclosing literature so you may learn about this company and we strongly recommend considering them. (www.iko.com) This is the toughest letter we’ve had to send since Allen Roofing started in 1972. We appreciate your understanding and as always we strive for competitive pricing, outstanding service, and look forward to working with you through these trying times. Sincerely, Allen Roofing | 
