MBI Shreveport Update

September 1, 2009

2009-09-01T13:45:00.000-07:00

Beaird Company, Ltd. Bankruptcy Proceedings
On August 12, 2009 Beaird Company Ltd.’s Bankruptcy was converted from a Chapter 11 Bankruptcy to a Chapter 7 Bankruptcy. This means that Beaird Company Ltd. no longer controls the disposition of its assets. The Bankruptcy Court has appointed a Trustee to oversee the dissolution of the property of Beaird Company and the disposition of its assets.

August 25, 2009 City Council Meeting
MBI attended the Shreveport City Council meeting on Tuesday, August 25, 2009, appearing before and updating the Mayor and Council as to the progress MBI is making in its efforts to begin operations at the Shreveport facility. Rick Fayard, Chief Administrative Officer of MBI, was accompanied by Steven Lee, Director of Environmental Issues, and Chip Naus, Attorney representing MBI in the Beaird Bankruptcy. Mr. Lee answered questions regarding the permitting process through the environmental agencies, which is proceeding as rapidly as possible. Mr. Naus advised on matters related to the Beaird bankruptcy, including MBI’s efforts to secure the equipment and property.

Outstanding issues remain at MBI’s Shreveport facility, such as equipment safety checks and facility safety concerns, which have been unable to be addressed due to restrictions set forth by the U.S. Bankruptcy Court in Beaird’s bankruptcy proceeding.

Although MBI did not cause the problems it currently faces in regard to the occupancy of the Shreveport facility, MBI has made enormous financial expenditures to try and resolve them all as quickly and aptly as possible.

May 26, 2009

2009-05-26T12:22:00.000-07:00

City of Shreveport and MBI Meeting
Working in a cooperative and collaborative effort, representatives of the City of Shreveport and MBI intend to meet in the near future to discuss the current status and path forward for MBI's occupancy of the facility in Shreveport and how the remaining steps might be expedited.

Beaird Company, Ltd. Bankruptcy Filing
On May 8, 2009, Beaird Company, Ltd. filed a voluntary petition under Chapter 11 of Title 11 of the U.S. Code in U.S. Bankruptcy Court.

Union Withdraws Charge Against MBI
On March 27, 2009, MBI received notice from the National Labor Relations Board that the UAW withdrew its charge against MBI.

4/15/09 Update on Permitting Process

2009-04-21T16:02:00.000-07:00

April 15, 2009
MBI received correspondence from its risk and environmental specialist regarding MBI’s permitting activity. As of April 15, 2009, the permit application is still under the review and approval process in the Permits Division at the Louisiana Department of Environmental Quality.

MBI’s permit application was also sent to the Ambient Air Standards group (Air Emissions Modeling and Engineering) for their review and processing. Compliance with the National Ambient Air Quality Standards is required. The Ambient Air Standards group is also currently processing our application.

MBI had made a separate request to the Assistant Secretary of Environmental Services for a temporary authorization, which would have allowed certain operations at MBI’s Shreveport facility while the other operating permits were being processed and written. This request was denied by the Louisiana Department of Environmental Quality.

4/1/09 MBI Letter to City CAO

2009-04-21T15:58:00.000-07:00

April 1, 2009
MBI sent a status report letter to Mr. Dale Sibley, the Chief Administrative Officer of the City of Shreveport. MBI informed Mr. Sibley of local and state delays, particularly the delays set forth by the permitting process. MBI shared information with Mr. Sibley regarding MBI’s business and its occupancy of the Shreveport facility, as well as its intent to ensure long-term economic viability, all in light of and in full consideration of the current economic conditions. MBI reiterated that it is moving forward with all possible haste. MBI likewise emphasized to Mr. Sibley that it is completely and totally committed to the future success of the Shreveport facility and its operations, as well as the opportunities it provides, which includes the labor market.

3/9/09 News Release

2009-03-09T14:46:00.000-07:00

The impact of the severe state of the economy is being felt in every industry. Although the long-term business of MBI remains robust and is growing, MBI, like any other company, is required at times to make personnel decisions to maintain production and efficiency. The recent layoff of a small fraction of MBI employees at its Mansfield facility is a result of MBI’s efforts to work with and accommodate the needs of our customers, which are reflected by their own industries, while also remaining successful as a company in our industry. Due to the current economic climate, MBI’s need for domestic production capacity involving the scope of work operated out of the Mansfield facility has diminished. Many of MBI’s projects have not been cancelled, but have been put on hold or temporarily postponed by our customers. In order for MBI to stay successful in our own industry, we must maintain the flexibility required to respond to the market’s dynamic needs.

The plans for MBI’s Shreveport facility are independent of and unaffected by the recent lay-off in Mansfield. It has been MBI’s long stated intent to launch our new product lines in Shreveport, move current overseas jobs to Shreveport which were sent overseas as MBI worked through the lease agreement and issues related thereto, as well as transfer positions from other MBI locations.

MBI remains focused on securing the necessary permits, completing its due diligence in regard to companies and sectors as part of its short-term and long-term strategies, and assessing the scope of work required to upgrade the Shreveport facility. In regard to unfair labor practice allegations asserted by UAW against MBI, MBI is currently in the process of responding to these charges, all of which lack merit.

For additional information please refer to http://www.mbiupdate.blogspot.com/.

3/6/09

2009-03-06T06:25:00.001-08:00

Long Term Strategy - Joint Venture – MBI is in the due diligence phase of assessing its long-term strategy with various companies and sectors. Our intent is to maximize the facility in a market that will be sustainable and not a “transaction based” business.

Interim Strategy – MBI is pursuing “transaction based” business that will allow us to get people to work for an interim basis until the long-term strategy is ironed out.

DEQ Permits – The permitting process is estimated to take 10-14 weeks from the date of submission of the application. The application was hand delivered on February 10, 2009.

Facility Upgrades – The scope of work is currently being defined and estimates are being generated to upgrade the facility. The extent of the upgrade is dependant upon the resolution of the Long Term Strategy.

MBI Delays – The impact of the current economic climate is being felt across many industries. MBI is taking this impact into full consideration and plans to begin moving portions of its business to Shreveport at such time as is advisable on all fronts.

2/19/2009

2009-02-24T15:29:00.000-08:00

MBI was notified that the Mayor for the City of Shreveport signed the lease.

2/10/2009 - News Release

2009-02-24T10:01:00.000-08:00

MBI and the City of Shreveport have an agreement that MBI will lease from the City a large manufacturing facility which was previously occupied by Beaird Company. The final documentation of the transaction between MBI and the City has yet to be completed. At the recommendation of its attorney, MBI is not to mobilize any business activity on the site until the transaction has been finalized.

At the request of the City this lease agreement provides that when MBI begins to hire new employees to work in this facility, it will give preference to individuals who previously worked for Beaird Company. This hiring preference is the result of an agreement between the City and MBI. Beaird Company is not a party to this agreement. Beaird Company is a corporation that is unrelated to and totally separate from MBI. To MBI’s knowledge Beaird Company has gone out of business and has not operated at least since May 2008. Also the United Auto Workers Union is not a party to this agreement between the City and MBI.

MBI has been consistent in its position as it relates to the Shreveport facility in that MBI intends to maximize the site in terms of both opportunity and employment. To this end, we continue our efforts to ensure that joint venture partners work with our existing operations and bring maximum benefit to the community.

MBI remains engaged in serious and deliberate negotiations to locate a joint venture at the facility. While we are anxious to launch this venture we want to do so in a manner that allows us to maintain our history of never having to scale back our workforce or to layoff workers. For this reason, while our negotiations are continuing, we continue to evaluate other opportunities and will announce a venture only after due diligence has convinced us of the long term viability of the venture.

Within the short term, MBI plans to mobilize portions of its existing core business into the Shreveport manufacturing facility. This mobilization is anticipated to involve the transfer of a substantial number of MBI employees currently employed in other communities to the Shreveport area, as well as the hiring of new employees. The recent applications for employment acquired from former Beaird Company employees is part of the ongoing startup process. MBI is also in discussions with several companies who would like to use the facility for a period of 3-12 months to fabricate products. If successful in accomplishing agreements with these other companies, more jobs will be created. This would allow us to begin to get people to work while the facility is being upgraded.

As for as the bigger picture, MBI hopes to announce shortly the details of its discussions that are capable of having up to 500-750 jobs beginning as soon as 2010.

Recent news reports have referred to a lack of communications between MBI and United Auto Workers as causing a delay in hiring the former employees of Beaird Company. These reports are not accurate. UAW was not a party to the agreement between the City and MBI in regard to hiring of former employees of Beaird. In fact there is no basis for MBI to involve UAW in the start up of its Shreveport operations. In light of the fact that UAW has recently filed allegations of unfair labor practices against MBI with the National Labor Relations Board, all of which MBI emphatically denies, MBI will not comment further on the segments of the recent news reports relating to the UAW.

Lastly, MBI has stated in the past that prior to opening operations at the facility we must receive various permits from local and state authorities. That process has begun, even prior to the final paperwork with the City, but until it is completed, MBI cannot commence operations at the site. The length of time required for these permits is wholly up to local and state officials.