Memo

From: Bob Westmeyer, CEO
Date: March 13, 2002

During the first quarter of 2002, Quality Assured Label has finalized the reorganization of its Strategic Business Units (SBU). What is an SBU and why is it important to our mission?

The SBU structure basically divides our company into smaller pieces that are more easily managed and creates a focus on the customers that we wouldn't necessarily achieve through our past structure. Our mission is to maintain the highest KPI's in the industry, and to accomplish this we need to be intimately aware of every customer need as soon as possible. The SBU's, with specific focus on a small number of customers each, provides that resource. Think of it as taking a big company and breaking it down into smaller companies - each with its own profit and loss accountability. Currently, we have created two SBU's, each with its own general manager. As we grow, we will create additional units to maintain our focus on specific customers.

Within each SBU there are multiple functions that make up the complete team: General Manager, Sales, Technical Sales, Quoting, Operations, Logistics, Quality and Project Management. We have been operating under this new structure for several months now and have seen some excellent results in achieving our goal through closer ties with our customers.

The SBU is people and if it were not for the dedication of its members, it would not succeed. The rest of us should stand fully in support of the SBU's. In fact, we are just as important because without our efforts the SBU's could not function properly in support of our customers. Only through working closely together can we achieve our goal of becoming the preferred supplier to our customers. Join me in supporting this new structure, remembering that we do what we do only for the customer's goodwill. Without them we would not be a viable business.