The Hunt for the Next 10 Bagger

[HARVARD LAW]

Letter to the shareholders of THRR
Coming off a difficult but rewarding year, we have seen significant changes in
Thresher Industries, our customer base, our Talon Division and our management
team and have restructured the organization to take advantage of those changes.
Over the past six months our efforts have been rewarded; our current press release
regarding the contract with Plantel Nurseries is just one of several exciting new
programs we are undertaking as we prepare to increase production and grow
Thresher Industries significantly.
I am very proud to announce that Dr. Bill Harrigan, PHD Metallurgist has joined our
team as an advisor to help define direction for the composites group and to assist us
in development of advanced metal matrix composites for cast applications. Dr.
Harrigan is highly respected in the industry and is a leader in advanced materials.
We look forward to Dr. Harrigan’s guidance and influence for our composites
business.
To allow our company to adapt faster we have made Talon Composites a more
integral part of Thresher Industries, renaming this division Thresher Composites
Group. The Thresher Composites Group, under direction from Dr. Harrigan, will
develop unique market driven cast composite alloys for our customers. With this
change Dr. Harrigan will oversee a development and testing program a major
university’s materials engineering department. Details regarding this program will be
released at a later date. The Thresher Composites Group will begin manufacturing
material for our customers in Q1 of this year. This new direction in metal matrix
composites allows us greater opportunity than being just a provider of nuclear
shielding materials; automotive aftermarket applications as well as electronics,
aerospace and defense systems all become target customers for these new
materials. Our objective for Thresher Composites is increased revenue and strong
net profit for this division.
As part of our restructuring we have added an additional key individual to our
Thresher management team. Jeff Tolle has joined our team as Controller in the
financial group. Previously Jeff has worked closely with our team to obtain private
funding as well as new customers and market development. Jeff has an extensive
background in startup companies and in the investment community. Jeff has proven
his abilities in the past year in helping our board and management team clearly
define our company and its goals as well as securing diverse customers for the
foundry.
Stock Related Issues and Financial Concerns
Since October 2006, none of our officers - CEO, CFO, insiders or control persons -
have sold any Thresher stock either issued to them or that they have purchased in
the open market. The consensus is that the current price of Thresher stock is
outrageously low and undervalued. Once the company shows its true worth to the
investment community we believe a more realistic value will be achieved. I speak for
those close to the company that feel there is value in the shares they have acquired
and they will not sell their shares until value and liquidity have been restored to the
company.
Thresher Industries has been successful in raising capital through several sources
other than selling stock. We have been working with a local California Central Valley
manufacturing business that has provided significant funds, enabling us to
accomplish goals without the need for selling further stock. With the purchase order
mentioned in our current press release we anticipate bank financing by way of either
a line of credit or purchase order financing providing
additional capital to fill orders, upgrade equipment and increase our customer base,
providing us with greater revenues while improving net profitability.
Recently there have been misleading and false statements regarding Thresher
Industries. First, we are a real manufacturing company with sales and value; we have a
strong yet diverse customer base and unique technologies. The company has a clearly
defined business plan and we are on track for a profitable year in 2008. We have added
strong players to our team, new customers, new materials and a new dedication to
become a leader in our industry. I wish all of our investors and business partners a
profitable and prosperous New Year.