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Hurricane Florence Update

We want to provide you with the most recent update concerning Hurricane Florence impacting our Kenly, NC facility and our ability to deliver products. As was mentioned in the prior communication, this hurricane not only impacts our delivery to customers in the South, but also our ability to transport products out of our North Carolina facility to customers in the Northeast and Midwest as well.

This morning, Hurricane Florence came ashore in the Wilmington, NC area with significant storm surges. This slow moving hurricane has been downgraded to a Category 1, but is bringing with it torrential rains which have produced over 20” and is predicted to produce up to another 20”. The water and wind have caused power outages to over 450,000 people so far, with this situation expected to worsen.

Our Kenly facility has not lost power as of this morning, but we have made the decision not to operate the plant today so our employees can be home with their families. As the hurricane continues inland we will reassess whether it is safe to operate the plant on Saturday. Our transfer trucks between Kenly and our East Earl facility will not operate today, but later today we will decide whether the trucks can safely operate on Saturday. Customers that will be impacted by product not shipped from Kenly yesterday and today will each be contacting to advise them of revised delivery dates.

By Monday we will be in a much better position to decide if and when we can begin shipping products to our southern customers. We will undoubtedly need to drive west around the flooded areas, so normal arrival times will be delayed as we expect traffic on those alternative highways to be much heavier than normal. Another update of this situation will be provided on Monday.

Best regards,

Jeff Eichenseer

Director of Marketing & Product Development