In January 2000, the Company established Just-Rite to own and operate its five wholesale distribution outlets formerly owned and operated by Acrocrete. During the first five months of 2000, Just-Rite acquired nine building material distribution outlets to diversify its product offering to the construction market to include gypsum, roofing, masonry, insulation products, as well as installation services beyond those supported by the Company's manufacturing operation. Management believes the acquired distribution outlets position the Company to gain a greater market share for its manufactured products through more direct sales to the end-user and to expand operations by distributing a wider range of building materials to the construction industry that are complementary to its existing product lines. In 2001, the Company closed three distribution outlets and eliminated installation services being provided at two other distribution outlets related to the acquired operations.

For the fiscal year ended December 31, 2001 and 2000, Just-Rite's sales, excluding the sale of Premix and Acrocrete products, accounted for approximately 56% and 56% of the Company's consolidated annual revenues.