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We will remember 2007 as a significant year of transition for the United States housing market. I am sure many of you will remember the precipitous plunge in housing (46%), the impact of an election and a war coupled with low interest rates and the talk of the "R" word (recession). I will remember the importance of quality companies with solid core values reemerging as industry leaders. I will remember how companies you could depend on adapted and prepared for the future. I will remember Cox Industries' resilience.

We will remember 2007 as a significant year of transition for the treated wood industry. Many of you will remember the various new preservative options that emerged. You will probably also remember the advent of non-pressure treatments and non-metallic pressure systems finding markets in our industry. You will also remember the variety of new chemical suppliers staking claims in the chemical arena with new pressure systems and derivatives of older systems. I will remember the beginning of a vast array of changes regarding product approvals. The American Wood Protection Association, the very organization that has assured treated wood's efficacy for 100 years is, as we speak, under attack from alternative agencies. I will remember how much pressure the consumer suddenly bore on his shoulders. I will remember how Cox stood to shoulder this burden on behalf of our customers.

We will remember 2007 as a significant year of transition for Cox Industries. Many of you will remember Billy Cox and Paul Turner. Just a couple weekends ago, a small group of friends and family gathered to celebrate Billy Cox's retirement after 35 years of service to our company, to our stakeholders and to our community. Just a few short days later, many of the same group gathered to celebrate the life of Paul Turner as he lost his battle to a prolonged illness. Fortunately, I will still be seeking Billy Cox's advice and remembering the valuable legacy of customer service taught to me by Paul Turner. However, I will also remember 2007 as the year Cox formalized a process of strategic thinking to carry our company into the future and support our customers and vendors in their endeavors to do the same.

Transition will come again and Cox will be ready.

Best,
Mikee