Dear Greenheck Teammates:

A few weeks ago, I planned this letter as a holiday greeting and sincere "thank you" for your contributions to Greenheck's success. Now, sadly, it has become an announcement of workforce reductions as the worldwide economic crisis has quickly caught up with us.

In recent days my executive team has notified 164 valued office and shop employees in our various business units that they will be laid off. This action is necessary given the rapidly slowing new order rates in a number of our businesses. We began to see a slowing in order demand during the fall; however, during November and continuing this month, we have seen a rapidly accelerating slowdown in orders. This situation requires immediate action to right-size our workforce to the projected work volume.

Despite not wanting to make this announcement with the holiday season upon us, I concluded that waiting until after the beginning of the new year would have been irresponsible and misleading to those affected.

It is important for all of us to extend our concern and best wishes to the affected teammates and their families. They are good people caught up in the adverse effects of the worst financial and economic crisis since the great depression.

What lies ahead with respect to this economic crisis and the impact on non-residential construction is uncertain, however, we are determined to keep Greenheck financially strong and growing. We are still the industry's market leader, we do not intend to relinquish that leadership role. During the 2001-2003 recession, we were able to keep our workforce intact and the company growing by expanding and improving our various sales channels and introducing many new products. Our Greenheck Team rallied to increase productivity and rededicated itself to the core value of being the best and easiest company to do business with.

We are continuing and committed to accelerate efforts on many of these strategies but at this point the economic downturn we are experiencing is far more widespread and serious than anything we have encountered in the 61 year history of Greenheck.

To meet today's challenges I have directed our executive team to emphasize the following priorities:

1. Aggressive selling.
2. Competitive, superior customer service (short lead-times, on-time delivery, and quick, courteous responses to questions and problems).
3. Doubling the effort to protect profit margins through factory and office efficiency improvements, value-engineering, better inventory management, improved material utilization, etc.
4. Relentless commitment to superb product quality -- best designs and best manufacturing.
5. Rapid introduction of new products and product improvements that can deliver profitable growth in the next 12 to 18 months.

There is no question that the negative effect of the worldwide economic crisis is over shadowing what is normally a joyful time of the year. Nevertheless, I offer my best wishes and want you to know that the Robert Greenheck family, our directors, the management team, and I care deeply about your well-being and that of your families. We plan to continue leading Greenheck in ways that have the highest potential to provide future opportunities for you and all others who depend on this company.

I hope and pray for better times and ask for your continuing commitment to winning. It has never been more important than it is now for every member of the team to strive to make a difference everyday!

Sincerely,

Dwight E. Davis
Chairman of the Board, President and CEO