CONSUMER
We replaced our highly successful 4'x4'x2" flexible spill tray with a 4'x4'x5"model. The new model is constructed of 40 mil pvc reinforced with nylon scrim. It has also been upgraded with ground cloth to protect against floor puncture from foreign object debris. Also new to the home market is a 3'x3'x5" model constructed of the same 40 mil reinforced material. While the 4' model was highly desired by do-it-yourself home mechanics, the 3' model is more compact and popular with homeowners who just want to stop vehicle leaks from oil, anti-freeze, etc. from spotting their garage floors or being tracked into the house. The 3' model, being smaller, is easier to drive over because it fits between passenger car wheels.

The original 7.5'x18'x5" Auto Tray continues popular for total under car floor protection. We also manufacture the Auto Tray in a standard 19' model for larger vehicles and trucks. The Auto Tray is also quite popular with classic automobile collectors who use the product as a moisture barrier when storing their expensive vehicles. Both models are popular in northern country where snow, ice, sand and other climate related debris soil the garage.

COMMERCIAL
This is a target market for York Industries. It has not grown as fast as the home and military markets because commercial vehicles are in use much of the time. We are presently aggressively marketing to commercial customers. We are advertising more in trade magazines to further penetrate this market.

Major commercial success has occurred in the service station and garage markets. As EPA has aggressively demanded compliance from commercial entities, our sales have improved. York acquired Phoenix, AZ and Baltimore Transit Authorities' business as well as the Raleigh, NC school bus transportation garages' business. Fuel trucks as well as maintenance trucks are equipped with our units for use in case of spills and clean up. In Raleigh, all school buses are refueled within our large spill containment units with the one foot high perimeter berms. Baltimore and Phoenix utilize a variety of different size units throughout their numerous maintenance garages.

MILITARY
York Industries recently renewed the second of our 5-year contracts with GSA. Military sales continue to fuel our phenomenal growth.

Towers
We are a major supplier of Light Cart Towers for aircraft landing areas and military security operations.

We have introduced a host of new patented products to the military. All have exhibited creative flair and field tested well. At the military's suggestion, we created a weighted safety orange spill pan for use on airfield tarmacs. Weighted models withstand windy conditions and air turbulence from passing aircraft. Spill containment units with features for static grounding are available for use around highly volatile jet fuels.

We continue to grow in each overseas market. York spill containment units are now used in every country with a US military presence. In January we sold our first order of spill containment units to China.

The desert is our home. York Industries is the creator of protective equipment for all forms of machinery used by the military in the desert environment. Desert equipment covers keep sand out of machinery and generators. An air filtration system allows moisture to escape and air to circulate around covered equipment.

We have also created another line of equipment covers to protect equipment in rainy environments. After equipment using York covers survived a North Carolina hurricane when everything around it was destroyed, the military requested York develop a line of rain covers. These covers mainly protect large generators and highly sensitive electronic equipment trailers.

While the year 2002 showed exceedingly good growth for our company, January 2003 exceeded 50% of 2002 total year sales. We at York Industries are hopeful this trend continues.