May 7, 2003       

Hytrol Announces Alliance
With Vertical Systems International

Hytrol is pleased to announce that we have entered into an alliance with Vertical Systems International, a manufacturer of continuous and reciprocating vertical conveyors, pallet stackers and dispensers designed to meet the needs of systems integrators and conveyor systems suppliers. This alliance will enable Hytrol to provide our Distributors access to the complete V.S.I. product line as well as all the technical support required to price and apply the products properly.

This agreement will go into effect May 12, 2003. Equipment can be purchased through either V.S.I. or Hytrol. If the order is processed through V.S.I., they will require a 25% down payment upon order entry, however, orders processed by Hytrol will be subject to our standard terms, 1% 10, net 30 days. Of course, all equipment ordered through Hytrol will apply to the Distributors overall Hytrol sales volume.

All equipment ordered from Hytrol will be shipped directly from V.S.I., FOB Walton, Kentucky. All lifts will be supplied standard with enamel coated V.S.I gray. Other optional colors will be available upon request.

The contact for V.S.I. will be:

Steve Templeton
Phone: 859-485-9650
Cell: 859-760-4488
Fax: 859-485-9654

We are excited about this arrangement and the opportunities it will create for Hytrol and our Distributor network.

If you have any questions or comments, do not hesitate to call.

We appreciate your business.

Sincerely,

HYTROL CONVEYOR COMPANY, INC.

Matt Farris
Director Distributor Operations