ANNOUNCEMENT !

Southern Manufacturing Group, Inc., acquires the Mueller Chem-Plug® Valve
September 2006
To: All Customers & Reps
From: Ray Jones

Subject: Chem-Plug® Valve Line

Chem-Plug® Valve Line

SMG Valves is pleased to announce that we have reached an agreement with Mueller on the sale of the Chem-Plug® Valve Line. This agreement will allow Mueller’s Chem-Plug® reps and all our existing reps to sell the Chem-Plug® Valve Line.

We are very excited about this acquisition and feel that it will be a positive move for both companies and our customers. We will be able to provide the service and delivery necessary to support your customers. This is a very good product that will compliment our Permaseal® and Key Port® 400 Series Valves.

We are currently prepared to hold to Mueller’s most recent pricing structure and are prepared to work with any reps to secure orders. We plan to stock these valves and hope to be able to provide the turnaround on orders that you currently receive with our Permaseal® and Key Port® 400 Series Valve.

Please feel free to contact us for any questions or suggestions on the Chem-Plug® Valve Line.

We appreciate the support and sales effort you have given us and look forward to working with you on the Chem-Plug® Valve Line.

Best regards,

Ray Jones
President