Global C.E.O. Kirk Eustace Discusses The Importance of Alliances

08/14/2006

Optimizing our business through Alliances As we look forward into 2007, Jamak is already focusing our planning discussions and efforts on identifying and mapping out key strategic alliances with customers and suppliers. The evolution of our Jamak owned locations in Texas, Manchester, England and China into a truly global Company with three locations has been successful in 2006 and is 90% complete. The challenges and opportunities of the Global economy require that we optimize our business models such that we can provide even deeper products and services to a more narrowly defined scope of customers and industries. In short, Jamak developed and provided a very broad array or products and services from the latter part of the 90’s and into the early part of the 00’s. We will now select some of those areas and develop the depth to truly provide best in class performance. We have a number of customers with some unique opportunities coupled with some unique challenges. For all of our futures, the last twenty years of dog fights over price and relationships that could move for a fraction of a penny, must come to an end. Witness the numerous companies who have gone out of business, struggled thru massive quality recalls, and who have filed bankruptcy. We must go beyond the superficial expressions of teamwork and cost savings, and start expanding relationships such that true long term value can be created. At Jamak, we are evaluating all of our customer relationships. Without going into too much detail, our criteria involves evaluating the investments they have made in their own companies, their willingness to build cross-functional relationships throughout each of our companies, their willingness to exchange business plans and business models, their outlook on short-term returns versus long-term returns, and their willingness to share in investments for true and lasting value improvements. For customers who meet that criteria, Jamak is eager and ready to make investments in resource time and money. Our desire is to align our plans, investments and business models with those customers because we believe that type of relationship is the key to future prosperity. There is a very similar evaluation for suppliers. Through the relationships with Jamak customers described above, there will be many new opportunities. We seek suppliers who can deliver a high degree of reliability and consistency, who are evaluating their own business and making investments to provide long term value, and who are willing to take on the responsibility of developing further products and services to help Jamak support our customers’ needs. Information sharing and relationship building will be vital. Simply quoting a low price, without the depth of relationship will not be enough. Some of our suppliers are already outstanding in this arena. I believe you know who you are and we appreciate it. Other suppliers once modeled this behavior but have now given into the global pressure and have reduced their efforts in cost-cutting modes so that they can sustain low prices. We encourage you to re-consider that strategy as we firmly believe that you can not save your way back to strong returns on investment. Cost-cutting is a survival strategy that may even produce short term growth – until you have to re-invest in your business! Growth strategy and return on investment requires a smart evaluation of your investments such that you invest time and resources to create value for loyal customers. Jamak wants to be one of your loyal customers worthy of investment. Jamak has an impressive customer list and a strong global supply base. Jamak has outstanding resources to define and coordinate customer needs, and to meet those needs by guiding and directing quality suppliers. I encourage you to evaluate the direction that Jamak is going and become a significant part of this alliance.