Dated August 2003

We have great pleasure in informing you that A.Algeo Ltd have just completed a deal to merge the Footwear Findings company of Somerton, Somerset in with our own.

Footwear Findings Ltd. has been a supplier to Algeos for many years and we have always had a strong respect for Mr Paul Audemars's management of the business.

Paul has decided to retire from active business life. He has built a very successful business in the last 10 years. The opportunity to take-over the distributorship of the most important material being sold in our market segment was just to good to miss.

Alan Sheridan & Paul Audermars

The directors of A.Algeo Ltd feel this is a strategic move to strengthen their position in the Orthopaedic and Podiatry manufacturing market as well as opening up our business to a new customer base and direct access to major suppliers.

It is our plan to maintain the Footwear Findings range of sheeting and components as they fit well into our existing ranges.

We have been planning the merger of the two businesses for some time now and hope to ensure that the transition will be smooth.

We have already restructured our logistics operation by selling off equipment and excess stock from our Shoe Sundry division to create space and free up staff in our Speke factory. Footwear Findings Ltd. has an excellent reputation for efficiency and there should be few noticeable changes to the existing processes.