June 1, 1999

RE: quality improvements in lithol rubines & yellows

Over the last few months, we have received quite a few calls from our customers requesting that our process reds and rubine reds be made significantly softer. Indeed, some of our reds, especially the high tack reds such as Speedex and Super VersaLith reds had become much too viscous. By changing the source of our pigment supply, we have managed to reduce the viscosity of these reds down to a level that very closely matches the other colors in their accompanying product series. Of course, we were very careful not to change tack, water pickup, print density or shade.

You might also notice that our process yellows are now more transparent than they were a few months ago. Again, we promise no significant change in tack, viscosity, or water pickup with this new yellow.

While we're on the subject, we also dropped the viscosity of Speedex Reflex Blue and Super VersaLith Reflex Blue to match the other colors, too.

May 27, 1999

RE: quality improvements in VSA-series alkali blue flushes

Recently, we instituted a program of tighter quality control over viscosity and tack of the VSA-series alkali blue flushes. You should notice better repeatability of tack and viscosity in any letdown of these products.

May 21, 1999

RE: increase of alkali blue prices

Dear Fellow Inkmaker:

Due to a sudden increase in the price of alkali blue pigment from our only domestic supplier, we are forced to announce a price increase for selected Kerley products. Fortunately, we have also heard news of a substantial investment by another US-based pigment producer who will be re-opening a previously closed alkali blue pigment plant in the Chicago area.

Beginning June 14, 1999, Kerley Ink will be increasing the prices of inks and mixing bases that contain alkali (reflex) blue. These include "Super VersaLith", "Speedex 4 PRS", "Maxi Set", "Soytex PLS", "Soytex LZR", "Nova 4 PS", and "Soytab PMX Plus"-series reflex blue mixing colors. Also, the prices of all "VSA" series alkali blue flushes will increase.

Additionally, and custom-formulated finished ink not appearing on this list containing more than 3% alkali blue flush will also have their prices adjusted according to their alkali blue flush content.

We also apologize for any inconvenience this may cause. Please do not hesitate to call us if you have any questions or problems arising from this announcement.

Best regards,

John R. Whalen

Vice President, Marketing

March 23, 1999

Kerley Ink completes move of corporate offices & color factory

Pictured above is 2020 West Parkes Drive, the new 'color plant' and corporate office location of Kerley Ink. During November and December, 1998 and January and February of 1999, Kerley Ink undertook the task of moving to new facilities in Broadview, Illinois--just three blocks away from the old corporate office/color plant location at 2839 S. 19th Ave. The new, expanded facilites include a larger laboratory for developing new color products, a 'server room' to securely house Kerley's corporate servers (including our web server), much larger color manufacturing facilities having heavy 480-volt power, better loading docks, and much larger inventory storage areas.