New Business Development Proposal Presented to Ken Smith October 24, 2007

1. New Business Development ProposalPresented to Ken Smith October 24, 2007

2. Situation Analysis Target Profiles Objective Strategy Campaign Tactics Campaign Timeline Rough Budget Disclaimer Table of Contents

3. The housing market stinks across the entire United States due to overbuilding and the jumbo/sub-prime mortgage bust. (National Association of Realtors - New Home Sales Report, August 2007) (National Association of Realtors - Existing Home Sales Report, August 2007) The state of the housing market is predicted to continue its unfortunate decline. (National Association of Realtors - New Home Sales Report, August 2007) (National Association of Realtors - Housing Starts Report, August 2007) The Fed’s September half point drop of the prime rate created no immediate positive affect in the housing market. (National Association of Realtors – Consumer Confidence Report, September 2007) As of the second quarter 2007, Maryland ranks 3rd in the US for the largest decline (21.1%) in sales for single family homes, condos and co/ops. (National Association of Realtors - States Total Sales, August 2007) Situation Analysis (Market)

4. As the residential housing market readjusts, inefficient players in the framing and wood products manufacturing business will continue to close their doors because of the slow-down. This allows companies, agile enough to adjust, an invaluable opportunity to capitalize. The framing contractor segment of the construction industry is severely underdeveloped in its branding and communication strategies; therefore, a consistent presence provides ample opportunity to develop front-of-mind awareness among general contractor’s key decision makers. Currently, due to poor communication tactics, GCs are forced to find framing contractors through the front counters of truss and component manufactures as well as lumber yards across the country. Companies that can plan, manufacture, and construct the framing portion of design/build projects have a competitive advantage over CRU as a one stop shop. Situation Analysis (Competition)

5. CRU’s rapid success over the past several years has been heavily reliant on the strong growth of the residential housing market. CRU is carrying the burden of Korey Homes debt service and the fulfillment of The RAACE Foundation’s agenda. CRU is now in a position to focus its new business development efforts in specific active regions of residential housing market and expand its business model to absorb more work from the commercial construction market at the regional & national level. To return to the lifestyle and philanthropic efforts made possible from revenues generated by CRU in 2004-05 and part of 2006, CRU must continue to adjust its business and communication strategy to adapt to an ever changing and volatile market place. Situation Analysis(Company)

6. General contractors building structures that require predominately wood framing (two of many such examples below) MW Builders (http://www.mwbuilderstx.com) Plumbhouse/Dalton Builders (http://www.plumbhouse.com) Other national homebuilders & residential land developers still in business Target Profile

7. Position CRU as The Solution in Framing Management to targeted general contractors in the commercial construction industry operating east of the Mississippi River. Create industry awareness of CRU’s capabilities as a path of least resistance for business development personnel focused on the commercial construction industry. Seek out residential construction projects in outside markets where opportunities continue to exist in a down economy. Objectives

8. Divide and conquer by establishing sales territories and generating target lists. Assemble a fulltime new business development team. Establish an annual public relations and advertising campaign that turns cold calls into warm calls and has the strength to open new doors. Strategy

9. Publicity (print & web) (Regional and National Publications) Print Ads (Regional and National Publications) (GC Newsletters) Internet Media (Banner Ads & Pay Per Click Advertising) Direct Mail Billboards (Strategically placed near entrances and exits of general contractors corporate, district offices, and job sites) Campaign (Brand Expansion Tactics)

10. Trade Shows Construction Associations (Attendance & Seminars) CRU Quarterly Newsletter (potential profit center for CRU) Promotions Presentations (Brown Bag Lunches & In-Office Presentations) Campaign (Lead Generation Tactics)

11. Event Attendance (Races, Sporting Events, Concerts, Fundraising Events) SWAG (CRU branded clothing, hats, clip boards, brief cases, golf balls, tumbles, etc.) Campaign (Relationship Tactics)

12. Revamped Website (Content driven) Intra & Extranet (Client project management/review) Audio/Visual Presentation Branded Folders Business Cards Thank You Cards Business Development Tools

13. Development Launch/Run Business Development Tools Revamped Website: Nov-Dec 07 Jan 08-Jan 10 Brand Development Tactics Publicity (print & web): Nov 07-Dec 08 Jan 08-Dec 08 Print Ads: Nov-Dec 07 Jan 08-Dec 08 Internet Banner Ads Nov-Dec 07 Jan 08-Dec 08 Campaign Timeline (Phase I)

14. Development Launch/Run Business Development Tools Audio/Visual Presentation: Jan-Mar 08 Apr 08-Dec 09 Branded Folders: Jan-Feb 08 Mar 08-Dec 09 Brand Development Tactics Direct Mail: Jan-Mar 08 Apr-Dec 08 Billboards: Jan-Feb 08 Mar-Dec 08 Lead Generation Tactics Trade Show: Jan-Mar 08 Apr 08-Dec 09 Construction Associations: Jan-Feb 08 Mar-Dec 08 CRU Quarterly Newsletter: Jan-Mar 08 Apr 08-Dec 09 Promotions: Jan-Mar 08 Apr-Dec 08 Presentations (GC offices): Jan-Mar 08 Apr 08-Dec 09 Campaign Timeline (Phase II)

15. Development Launch/Run Business Development Tools Intra & Extranet: Mar-May 07 Jun 08-TBD Campaign Timeline (Phase III)

16. Development Placement Business Development Tools Revamped Website: $(15,000) Brand Development Tactics Publicity (print & web): $(35,000) Jan 08-Dec 08 Print Ads: $(12,000) $(50,000) Internet Banner Ads $( 7,500) $(18,000) Sub Total$(69,500) $68,000 Rough Budget (Phase I)

17. Development Placement Business Development Tools Audio/Visual Presentation: $(15,000) Branded Folders: $(12,000) Brand Development Tactics Direct Mail: $(10,000) $(20,000) Billboards: $( 7,500) $(40,000) Lead Generation Tactics Trade Show: $(30,000) $(30,000) Dodge Reports / CMD (new markets) $( 2,500) Construction Associations: $( 5,000) $(10,000) CRU Quarterly Newsletter: $(15,000) $(3,000) Promotions: $(10,000) $(12,000) Presentations (GC offices): $(10,000) Sub-Total $(107,000) $(125,000) New Business Development Team Person 1 $(75,000) Person 2 $(75,000) Rough Budget (Phase II)

18. Development Placement Business Development Tools Intra & Extranet: $(45,000) Jun 08-Aug08 Sub Total Project D&P Budget $(221,500) $(193,000) Additional Planning & Account Service $( 30,000) Market Research and Testing $( 25,000) Miscellaneous $( 30,000) Business Development Personnel $(150,000) Final Sub Total $(456,500) Total including media placement $(649,500) Monthly $( 54,083) Target for New Business Revenue Increase $20,000,000- $25,000,000 Rough Budget (Phase III)

19. **This plan requires a 12-16 month commitment before CRU would begin to see significant income and be able to measure the true success of the campaign and business development team’s efforts. **The campaign would be measured quarterly and reviewed annually. A revised strategy would be created for the following year based on the measured successes and failures of the business development team’s actions and effectiveness of the public relations and advertising campaign. **This is not a get rich quick scheme. The entire campaign hinges the business development personnel hired to take advantage of the public relations and advertising campaign. There is also a heavy weight on the support structure at CRU to fulfill estimates, contracts, and follow-ups in a timely and professional manner. Disclaimer