Greystone Logistics Corporate Information

DESCRIPTION OF BUSINESS

Greystone Logistics is a high growth manufacturing and leasing company that designs, manufactures, sells and leases high quality plastic pallets that provide logistical solutions needed by a wide range of industries such as the food and beverage, automotive, chemical, and pharmaceutical and consumer product industries. The technology in its injection molding equipment, proprietary blend of recycled petrochemical resins, and patented pallet designs allow production of high quality pallets more quickly and at a lower cost than competitors. The recycled plastic for its pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resin. In five years Greystone has moved from the research and development phase to become the leading pallet manufacturer in the beer industry with over 3 million of their patented recycled plastic pallets delivered to major customers. In the next five years the company intends to continue double digit growth in sales in manufacturing and leasing with exceptional return on assets.

HIGHLIGHTS/PROPRIETARY TECHNOLOGY & INTELLECTUAL PROPERTY

Only publicly-traded company focused on fast-growing plastic segment of the $6 billion pallet industry.

Developed technology and proprietary recycled plastic blends and processes to become low-cost producer, with patents issued and pending for pallet designs and plastic fire retardant technology. One of the country’s largest post-industrial users of plastic (25 million pounds).
Has grown from R&D firm to projected next corporate year revenue in excess of $20 milion.
Has started plastic pallet leasing program. U.S. wood pallet leasing revenue is currently over 1.5 billion annually.
List of well-recognized customers: Pharmacia, Apotex, Miller Brewing Company, Coors Brewing Company, Merck.

MARKET OPPORTUNITY

HUGE MARKET
Pallets are used in virtually all United States industries in which products are broadly distributed. The Material Handling Industry Association (MHIA) estimates the size of the U.S. pallet market in excess of $6 billion annually with over 600 million wood, plastic, or paper pallets purchased in the United States.

SHIFT TO PLASTIC FROM WOOD
Plastic pallet sales are growing at double-digit rates. Disposal issues and fumigation costs coupled with regulatory mandates on pest, biological, and chemical infestation with wood pallets means more emphasis on alternate solutions. As a result, the industry is rapidly transitioning to plastic pallets with wood pallet usage continuing to be abated over time. The opportunity exists for hyper-growth in leased plastic pallets.

BEVERAGE INDUSTRY OPPORTUNITY
Greystone is a major provider of pallets to the beverage industry, which currently represents 35% of the plastic pallet market. In the beer industry alone, the two largest U.S. beer breweries, totaling 80% of the US beer market, circulate 5-7 million pallets within their distribution system annually. Approximately 15-20% of these pallets are lost per year, thus requiring consistent replacement orders. The beer industry represents just 5% of the total beverage industry. Greystone has always been the sole provider of recycled plastic pallets for Miller Brewing Company and is replacing the Coors Brewing Company existing shipping platforms. Greystone is actively working to capture additional market share in other areas of the beverage sector.

BUSINESS MODEL

Lease pallets into managed lease pool – New national beverage customer will drive growth in this $2 billion dollar market dominated by wood.
Growth with industry – As the materials handling industry look for “green” alternatives and continue to adopt plastic pallets for automation, safety, health, cost and efficiency concerns, Greystone will benefit from this trend because of the infrastructure and capacity now available.
Leverage Miller Brewing and Coors Brewing Company success with direct sales on other industry giants moving from wood to plastic and expand distributor network – The Company is aggressively expanding their base of sales outlets through their exclusive national distributor, Decade Products.
Roll out product recently completed product line – The Company currently has seven different pallets. The company’s business plan for future growth is dominated by a lease/rental pallet and standard export, beer keg and specialty pallets. The current broad product line was recently completed and meets the needs of a broad spectrum of pallet users.

MANAGEMENT

Warren F. Kruger, CEO

Mr. Kruger was named President and CEO on January 10, 2003. He earned a Bachelor of Business Administration from the University of Oklahoma and an Executive MBA from Southern Methodist University. Mr. Kruger has over twenty-nine years experience in the financial services industry. In 1980, Mr. Kruger co-founded MCM Group, which owned and controlled United Bank Services until 1996 when the firm was sold to a subsidiary of Cendant (CD-NYSE). He also owned and operated Century Ice, a manufacturer and distributor of ice products from 1996 to 1997, when Packaged Ice Corporation acquired Century Ice in an industry rollup. Mr. Kruger is a director of privately held Yorktown Management & Financial Services, L.L.C. Yorktown is involved in investment banking, real estate, manufacturing , and energy endeavors.

Robert Noland, SVP Sales and Marketing
Bob Nelson, CFO
Ron Schelhaas, Plant Manager
Ron Brockman, Controller
William Pritchard, General Counsel

Disclaimer: This material has been prepared by the company described and is being distributed by the company. The company prepared the facts that underlie this executive summary and additional information is available in publicly filed documents. Viewers are encouraged to review information presented herein for accuracy or completeness. This summary is not an offer to sell neither securities nor a solicitation of an offer to buy securities.

Legal Notes & Disclosures: Greystone Logistics, Inc. may make certain forward-looking statements that relate to future events or future business and financial performance. Such statements can be only predictions and the actual events or results may differ from those discussed due to, among other things, those risks described in Greystone Logistics, Inc. reports or evident on Forms 10-Q and 10-K. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any state. Past performance does not guarantee future performance. Additional information is available upon request.