Expo Holdings Inc. (EXPH)

[Santa Barbara Broker]

i know .. how come that *meanie* weeke router had to go and fail on the co. mere weeks later. i mean let's be clear that would have zero impact on anything so it's no big deal ..

OK, look. READ what was written. Read that statement above. Do it twice for effect. NOW. Here's what Expo wants everyone to believe. They have a piece of equipment in their warehouse around which almost every single production item they manufacture is based. A piece of equipment so important, so specialized, so integral to the very existence of the entire company, it's management, employees and shareholders that without it, the company would, for all practical purposes, simply CEASE TO EXIST. OK, have we got this framed up just the way JD presented it? Good.

Now, Expo management is asking the shareholders to believe that they bought this machine, the most critical single element to the company without which most cabinets and many displays could not be manufactured, fully knowing that a single breakdown would require most necessary replacement parts to have to be custom manufactured for it in Germany each and every time. That this would take a minimum of six weeks. That no company, including Weeke and their many distributors all of whom have a heavy footprint in American, carry a single replacement set-up parts inventory for this router head. That there is absolutely no temporary replacement for the machine anywhere in the US. That this machine is simply one of ten (10) in the world and that those are the exact circumstances we understood when we purchased it...new. From the manufacturer.

NOW, knowing that, JD Brown and Glenn Harrs would like the shareholders to understand and believe the following:

That despite knowing all this from day one we never considered nor did we ever implement even the most simple of emergency plans to deal with the router's failure...which we knew from day one would bring the entire company to it's knees, put most of our workforce on unemployment for up to two months and cause the loss of many if not all of our time critical contracts for our newly formed and massively important cabinet manufacture program. That we took no steps to stock or have custom manufacturered even one of these critical parts for which a minimum six (6) week wait would be necessary otherwise. That we never considered the available maintenance plan available from a US company which guarantees to have all parts available for your specific Weeke router as part of the service. That there was no replacement or "loaner" for this machine anywhere in the US available to fill in while ours was being repaired. And finally that no other wood working shop in NC or the surrounding area could be found that would allow Expo Holdings to use their facility and their CNC router on an off shift (say 11 PM to 7 AM) to continue manufacturing the critical components that caused the loss of the ETC huge retailer contracts and some Cima jobs attributed to the Weeke router head failure.

There...there it is in graphic detail. Spelled out as clear as one could hope for. THIS is what you are telling me is an excusable situation where competent management is concerned? This incident, which caused the loss of a 100 outlet retail distributer for ETC cabinets, which single handedly caused the execution of the largest dilutionary and equity destroying phase in the company's history, which caused the plant and many employees to be idled for six weeks. Caused the delay in naming a CEO. Caused the massive losses sustained in 2010. Caused the filing for an R/S which was "accidental". Caused the delay in filing 2010 financials, removal of the "stop sign", failure to produce Form 3s, possibly the assasination of JFK, 1928 failure of the Johnstown, PA dam and the al Queda attack on 911.THIS is what you are stating for the record is an acceptable occurance that was in no way the fault of management and that the unimaginable amount of fiscal and psychological damage it caused to hundreds of individual investors under that unbelievable scenario of incompetence and chance is perfectly believable and normal for a public company? THAT is what you are saying is OK for Expo shareholders to accept as the truth? THAT is what you are defending? All IMHO.