Customer Congratulates Cortec

A recent note receieved from Ship-Pac in Kalamazoo, Michigan.

February 7, 2001

As part of our ISO 9001 quality system and in our effort to strive for continuous improvement with our vendors, Ship-Pac has developed a system in which the service levels of our vendors is tracked and monitored. This system was implemented in February of this year.

Ship-Pac will provide you with a quarterly statement regarding your service level. The statement for the second quarter of our fiscal year 2000-2001 is enclosed. The service level percentage represents the number of items that are received complete and on time divided by the total number of items that were purchased. Items that are not complete and on time are categorized as backorders, promised ship date, and item that are rejected due to quality issues.

Our goal is to have all of our vendors achieve a minimum service level of 95%. Your status as an approved vendor may be subject to review if your service level percentage is consistently below 95%. We value our relationship with your company and will make every effort to work with you to continuously improve the quality of your service to Ship-Pac.

If you have open Corrective Action Requests, you will also receive a quarterly statement listing those requests. Please feel free to contact me with any questions you may have regarding your vendor service level statement, CAR statement or our system in general.

Sincerely,

Jagadey Skipper
General Manager