From the desk of John Veith, President:

We held our third quarterly planning session in February. We had 35 employees in attendance from all departments throughout our facility. These meetings provide our Management an insight into what our employees see every day in their work areas and what they think we can do to get better. We discussed our goals for 2012 and what steps we need to take to achieve them. Quality, On Time Delivery and Low Cost are the three things all of our customers demand. We have grown significantly over the past 2 years and the question is how do we continue that growth? If we meet and exceed our customer’s expectations then we have nothing to worry about. We need each of you to help make us successful. We are continuing to expand our operations and will be running 24/7 in our new building very soon. This expansion provides opportunities for all of you who want to progress in our company. We need individuals to step up and take on responsibility and assist us in managing this growth. We hope that we can provide opportunities for more and more of you to make more money and learn new skills. Thanks for your efforts to make us a better place to work, a better vendor to our customers and a good neighbor in our community.

EMPLOYEE OF THE MONTH

FEBRUARY 2012

• Imelda Cruz is the winner for this month’s Employee of the Month Award. Imelda is a versatile employee who is willing to accept new tasks in order to grow within the organization. She has performed in Receiving and Final inspection, working with the lab equipment and trained utilizing the CMM. Whenever she is needed to work due to customer requirements, she is one is the first to volunteer.

• Recently award d the position of Group Leader Inspection, Imelda has continued to expand Custom Rubber’s inspection’s capabilities by starting an inspection night shift of newly hired or transferred employees and individually training them from the ground up. This training currently includes the training of another CMM operator. She has successfully cross-trained in shipping and the lab which has proven to be a valuable resource for both shipping and the lab to perform emergency tasks when these areas have had personnel shortage issues.

Desde el escritorio de Juan Veith, Presidente:

Celebramos nuestro tercer período de sesiones de planificación trimestral en febrero. Teníamos 35 empleados en la asistencia de todos los departamentos a través de nuestras instalaciones. Estas reuniones proporcionan nuestra gestión de una idea de lo que nuestros empleados ven cada día en sus áreas de trabajo y lo que creo que podemos hacer para mejorar. Hablamos de nuestros objetivos para 2012 y qué medidas debemos adoptar para su consecución. Calidad, entrega a tiempo y bajo costo son las tres cosas que todos nuestros clientes demandan. Hemos crecido significativamente en los últimos 2 años y la pregunta es ¿cómo podemos continuar ese crecimiento? Si se cumplen y exceden las expectativas de nuestros clientes, entonces no tenemos nada de qué preocuparse. Necesitamos cada uno de ustedes para ayudar a que nuestro éxito. Seguimos expandiendo nuestras operaciones y va a correr 24/7 en nuestro nuevo edificio muy pronto. Esta expansión ofrece oportunidades para todos los que quieren progresar en nuestra empresa. Necesitamos personas para subir y asumir la responsabilidad y nos ayudará en la gestión de este crecimiento. Esperamos que nos puede proporcionar oportunidades para que cada vez más de que para ganar más dinero y aprender nuevas habilidades. Gracias por sus esfuerzos para hacer de nosotros un mejor lugar para trabajar, un proveedor mejor a nuestros clientes y un buen vecino en nuestra comunidad.

SAFETY TIP

The use of cell phones and or MP3 players except while on break is strictly prohibited. Its every employees responsibility to practice safe working habits, not only for themselves but also for the person next to you. You need to be 100% focused when operating machinery and this is not attainable if you are playing with your phone. Creating a safe working environment is not only beneficial for yourself but your family and coworkers as well.

Quality Policy Custom Rubber Products is committed to providing the highest

Quality molded rubber, mandrel wrapped and thermoset plastic

Products to our customers by:

Consistently meeting or exceeding our customer’s expectations for product quality and performance.

Timely delivery of products to meet our customer’s requirements. Continuous improvement of our process and systems. Ensuring our personnel are properly trained so they are better able to

server our customers.

2012 Quality Objectives

1. % Scrap (Less Ball Product Line) – 4.5% or less

2. On Time Delivery – 85% or greater

3. Recordable Incident Rate – 1.5% or Less * Monitor and Measure equipment downtime for

establishing baseline for 2013 Quality Objectives

* Monitor and Measure on time delivery by suppliers for establishing a baseline for 2013 Quality

Objectives

Stay safe! Drink plenty of fluids!

a salvo! BePermanezca ber mucho líquido!

SAFETY TIP • Slow down and pay attention to your

surroundings. It doesn’t matter if you’re at work, home or in your car, take your time and make sure the task is done safely and correctly. Remember, signs are posted for information purposes and to help keep you safe, please take the time to know what they say and mean. If you are not sure what a sign means please ask you supervisor. Safety is everyone’s responsibility.

If it can be measured, it can be done!

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“If the ladder is not leaning against the right wall, every step we take just gets us to the wrong place faster”

*******Si la escalera no es apoyado contra la pared de la derecha, cada paso que damos sólo nos lleva a un lugar equivocado más rápido

Stephen Covey

Coming Together is a Beginning.Keeping together is a progress.

Working together is success-Henry Ford-

Juntos es un comienzo.Mantener juntos es un

progreso.Trabajar juntos es el éxito