Grohe delay

Dear Customers,

Last June, we announced that we were moving manufacturing from our Mississauga plant to Monterey in order to increase our capacity and deliver more products, more quickly to our customers.

The transition has been ongoing, however, we have experienced larger than anticipated delays in getting the manufacturing process ramped up to meet the demand in spare parts and brushed nickel finishes. This delay in our plant has been exacerbated by transportation strikes.

This means higher than normal backorder situations and has put a strain on our customer service department, resulting in higher call volumes and longer wait times.

We are actively working to address the issue and have put in place new plant management and new procedures, including increased quality checks and production efficiencies, to ensure the plant is operating at normal levels as soon as possible.

Sometimes, when working towards a lofty goal, short-term disruptions, inconveniences and unanticipated circumstances will happen. We recognize that these temporary delays are frustrating and we apologize, however we are confident that the long-term benefits will soon be realized.

Thank you your patience and continued support of GROHE.

Thanks!

Mary Ann

MaryAnn Iglesias

Inside Sales Representative

Grohe America, Inc.

200 N. Gary Ave., Suite G

Roselle, IL 60172

Cell: 630-570-1535

Fax: 630-578-1435

E-Mail: MaryAnn.Iglesias@grohe.com

Internet: www.grohe.com/us