LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Ri

1. LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller: Lyle Jobst Distribution Manager: John Mansson Marseilles Plant

2. History • Marseilles was built in 1990 as a one-kiln plant. • Global Clay Products LLC (Georgia) bought the plant in 1999, and in that year, started construction on a second Ceric kiln. • The second kiln was operational in late 2000, early 2001. • Glen-Gery purchased Marseilles Plant in December 2001. Reasons for the purchase: • Have a modern plant in the Midwest market. • Enlarge our territory and introduce Glen-Gery products to new areas. • Get closer to the large brick-loving Chicago market and overall Midwest market. Being closer means getting brick there faster and cheaper than our competition. • Marseilles is only 60 miles away from Chicago – the 3rd largest brick consuming city in the U.S. Chicago uses 250 million brick per year. • With the addition of Marseilles Plant, our production is evenly split between the East and Midwest regions of the U.S. Marseilles Plant

3. Marseilles Modernization $3 million upgrade* Modifications to Kiln, Setting Machine, Dehacker, Manufacturing Dept., Yard *The cost of the modernization was factored into the buying price. REASON FOR UPGRADE Make the plant compatible with Glen-Gery’s manufacturing processes. Laser search and locate system Marseilles Plant

4. Marseilles Modernization Overview • SETTING MACHINE • Relieve the edges on architectural brick to minimize chippage • New textures for residential product development • More efficient production of size formats (make king size) • DEHACKER • Better blending within a hack • Better cube blending between two kiln cars. Blending is now broken down to • include brick from different hacks and separate courses. • KILN • Upgrade older kiln to achieve better color consistency on flashed products and consistency overall • Better color matching from kiln to kiln • MANUFACTURING • Pug Mill – auto-moisture controls to assure size consistency • Grinding Dept. – new equipment for accurate measuring of raw materials and • additives will contribute to color uniformity in fired products • Extruders will be outfitted with automatic hydraulic die changers for quick and • efficient size switching • YARD • Rail Siding and loading dock added so that shipping is now done by railroad, • a faster method of transportation, rather than truck • Concrete pads for inventory will be installed Marseilles Plant

5. Improved blending: Transfer grippers add to blend and start cube building process. No more than 5 brick that were together in the hack are together in the cube Marseilles Plant

6. Marseilles Plant Overview Marseilles Plant

7. Site Marseilles Plant is located on a 40-acre site in Marseilles, IL, about 75 miles southwest Chicago. Raw Materials • Raw materials are extracted from two locations: • Shale (red brick) – from an 80-acre leased site • about 40 miles from the plant; • Fireclay (buff brick) – from an 80-acre, Glen-Gery owned site about 20 miles from the plant. Raw material reserves estimated at 30-year minimum for both and shale. Marseilles Plant

8. Production Details Marseilles Plant makes extruded brick in 100% shale and clay and clay-shale blends, in both flashed and clearburn ranges. Production capacity 120,000 million Kiln capacity 36 cars Kiln car capacity 10,080 modular Kiln car size 14 ft long x 21 ft. wide Push rate* (varies by size) 10 – 11 econos, utilities 14 – 15 king, queen, 70 series (engineer) 18 modular * The push rate is the amount of time it takes to move a kiln car one length. An 18-car push rate means that a car is removed every 18 min. Marseilles Plant

9. Sizes Size:Width x height x length Modular 3-5/8 x 2-1/4 x 7-5/8 Econo 3-5/8 x 3-5/8 x 7-5/8 Utility 3-5/8 x 3-5/8 x 11-5/8 Engineer 3-5/8 x 2-3/4 x 7-5/8 (Engineer also called “70 Series”) Queen 3 x 2-3/4 x 7-5/8 King* 3 x 2-3/4 x 9-5/8 * Marseilles king size is different from traditional king size of 3-5/8 x 2-3/4 x 9-5/8 Marseilles recently made a “premier” size -- measuring 3-1/2” w x 3” h x 9-3/4” l – for a large order in Canada. Defined as a cross between king and utility, premier is a common size in Canada. Marseilles Plant

10. Product Line Marseilles products are divided into two collections: Chicago Collection Commercial market 13 products on Price List Marseilles Collection Residential market 26 products on Price List Marseilles Plant

11. Product Line Marseilles Collection Top selling residential products Cashmere • St. Thomas • London Mist • Morning Dove • Silver Aspen • Cashmere* • Irish Crème • Heathermist • Colonial Rose Merlot * Introduced in 2002, Cashmere is the #5 top seller of all Marseilles products. Cashmere was developed to compete with General Shale’s popular “Cortez” product. Chicago Collection Top selling commercial products • Red Velour • Colonial Sand • Sahara Velour Red Velour Marseilles Plant

12. Product Line Chillicothe Products These products from the former Chillicothe Plant are now being made at Marseilles: • Glacier Bay • Cedarcreek • #888 Laredo • Rosebud • Roseboro • #924 Laramie • Polar Bay Also, Marseilles’ Cabernet is a look-alike replacement for Chillicothe’s Monterey Chillicothe’s “Sunberry” and “#930 Tucson” are now in testing phase for production. Marseilles Plant

13. Textures Velour texture • The plant predominantly makes “Smooth” and “Velour” textures: • SMOOTH is technically a “die skin” texture. The clay, which is made from a finer grind, passes smoothly through the extruder – no wires are used. • VELOUR texture is achieved by blade cutting a smooth column of clay after extrusion. Coarser raw materials result in a rougher texture. Smooth texture Note: Marseilles products look like they are wire cut, but this in an incorrect description. The are “blade cut.” “Worm” (also called “Indented”) is a texture treatment used on some residential products. (See Cashmere and Merlot samples.) Marseilles Plant

14. Marseilles 2003 Market Overview Primary markets / brick shipments (Jan - Jun) • Illinois 17,077,00049.0% • Indiana 4,221,00012.1% • Ontario 3,937,00011.3% • Michigan 2,660,0007.6% • Wisconsin 1,264,0003.6% Chicago alone represents 14,428,000 BE’s (or 85%) of this figure. Total Shipments = 34,841,000 Total Residential shipments = 23,171,000 Total Commercial shipments = 11,507,000 Marseilles Plant

15. Marseilles 2003 Customer Overview Top customers / brick shipments (BE’s) • Prairie Brick Co. Illinois 10,187,114 • Brampton Brick Ltd. Ontario 3,852,288 • Chicago Block & Brick Illinois 1,013,793 • Northern IL Brick & Supply Illinois 869,819 • Edgewood Building Supply Indiana 927,465 Marseilles Plant

16. Marseilles 2003 Customer Overview Use in Construction / Brick Shipments (Jan - Jun) • One-family houses 7,912,000 • Two-family houses 590,000 • Apartments 858,000 • Hotels/motels/dorms 48,000 • Commercial 3,635,000 • Manufacturing bldgs 4,000 • Education/Science 1,821,000 • Hospital/Health 271,000 • Public 441,000 • Religious 336,000 • Dealer stock 18,350,000 Marseilles Plant