New Multi-Brand Accounts● Pryor Industries, Grover Beach, CA has opened Kemper, AOK, and CC accounts - account number 014658 – and expects to place their first Kemper order with in about two weeks. They are a medium-sized custom shop that sells to builders on the Central Coast. Potential in the next year $75K (RM)

New Accounts Displacement/Placements

Remodeling Activity• Probuild, San Diego, CA – A Diamond order had to be switched to another line since Diamond doesn’t offer ¾”thick cross grain panels in at least a 48”W x 34.5” H. It was needed for the back of an island with a built in oven in it. They also said the ¾” panels are used more often because they are sturdy enough for corbels and wainscoting. (PG)• Probuild San Diego has placed their Contractor’s Choice opening stocking order in the Hammond, Newberry and Clarkson door styles. Vol $113K.. (PG)• Valley Concepts, Lake Forest, CA - Bob Allen sold a large Decora’ project this week for $30k and will place order this week. (CH)• RSSA Home Improvement Center, Anaheim, CA - Ray Allahbakhski owner is re-opening their second ,larger. location in Anaheim. He is going to feature MBCI brands AOK, Diamond , Decora’ and is opening a Kitchen Craft account. He is now filling out a new credit application and has ordered three new selection centers for the core brands. He is also designing new displays for each brand. Ray feels that now is a good time to get this location open and running , since the economy seems to be back on track again with consumers purchasing kitchens. (CH)• DirectBuy, Anaheim, CA - This location has placed four Diamond orders for a total value of $50k. The new MBCI partner program seems to be working and lifting this location’s sales. (CH)

Projects • The three KC kitchens for the mock-ups for the Menorah House project for Western States Cabinet Wholesalers, with the help of the manufacturing team in Winnipeg, shipped in less than a week after being ordered and will be delivered to Magic Messenger on Wednesday, 9/8/2010. If the installation of these kitchens goes will, there will be approximately 1450 boxes ordered on two projects by the end of the year - $155K(RM)

Competition• ORG – The, closet laminate company, is selling kitchen cabinets now. Mirabella Construction , who sells both ORG and Kraftmaid , said ORG has13 thermofoil finishes and 6 wood doors. It is priced similar to the Kraftmaid KD line and lower than IKEA. (PG)• Kraftmaid – Mirabella Construction reported Kraftmaid is starting to do more custom modifications, they dropped up-charge and modification pricing to offset their price increase. It is actually lower priced now. (PG)• Western States Cabinet Wholesalers says they perceive the overall effect of the recent Kraftmaid changes to be a prices increase. It is probably fair to say that the market is having some trouble figuring out what the overall effect of the Kraftmaid changes. As part of the MASCO cabinet re-organization MASCO is approaching their larger dealer customers and putting pressure on them to become exclusive MASCO dealers by adding Quality, and Merillat, according to Stockdale Cabinets, Bakersfield, CA. (RM)•Holiday Custom Cabinets will make any single size cabinet as long as it can fit in their truck. (PG)• Cardell Cabinets is able two-step a Sinclair like product at the Newberry price point. Cardell is now making a push into the Southern California market through both dealers and new construction channels. (CH) • Medallion Cabinets new custom color mod is starting to take off with consumers. Tom LaBerteaux of The Cabinet Outlet finds that this mod may drive consumer sinto the brand even if they end up not using the mod. The consumers like to know they have this choice and makes the brand seem even more custom. (CH)

Market Notes•Probuild Diamond Product wish - W4212 cabinet for stacking and more 21” cabinets. There are a lot of missing 21” wide cabinets in the line and it is frustrating for them. (PG)•Homebuilders scored a huge victory Thursday when the Southern California Association of Governments board voted to endorse lower greenhouse gas reduction targets than state regulators had proposed. SCAG voted 29-21 to set emission reduction targets at 6 percent by 2020 and 8 percent by 2035. The California Air Resources Board (CARB) had recommended an 8 percent per capita reduction by 2020 and 13 percent per capita reduction by 2035.The environmental community came out in full force at Thursday’s meeting, urging the SCAG board to adopt CARB’s targets or take them even further. But the homebuilders’ united effort brought the debate back to reality. Homebuilders cited information straight from the MPO staff reports which said CARB’s proposed targets were infeasible on a number of levels. (SW)•Higher-priced home weakness asserts itself again in June: Voice of San Diego. The Case-Shiller home price index for San Diego was up a mild .4 percent overall in June. Hidden in that increase, however, was a drop in the high-priced tier (composed of the most expensive one-third of homes sold during the April-through-June measurement period).(SW)• SDK Product Wish list - The Kitchen Store owner, Ken Bass ,is asking that Diamond offer all top-selling door doors styles in Alder. They are running into customers wanting the Sullivan and LaGrange door styles in alder. (CH)

Pacific West Area Executive Summary 09/10/10Highline-Southwest

Key Targets Pacific West

NorthwestSouthwest

Financial Metrics