Expo Holdings Inc. (EXPH)

[fourkids_9pets]

UPDATE OUT via website

11/8/2010 2:49:30 PM

The company continues to operate at a much reduced pace without a critical piece of heavy equipment. The failure of the company’s heavy router has caused severe financial strain, along with shipment delays. It has resulted in layoffs, with continued layoffs expected until the equipment is repaired. It is expected the repair will occur in the next several weeks. Due to the highly specialized nature of the equipment the repair has taken much longer than originally expected.

The company has raised funds using its equity due to this failure. The company has also filed a claim with our insurance company, and as of yet have received neither a positive or negative response from them.

Shareholders should expect delays, sales disruptions, and order cancellations as a result of this failure.

The company expects a quick ramp up of production once the router is repaired and operating efficiently.

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4kids
all jmo