February 1, 2010

The past two years have been very difficult for our customers, our industry and our country overall. During this most difficult time I am proud to share with you that Kato Spring is even stronger now than two years ago, due to the diversification of our business and the hard work of our team. In this time of vendor uncertainty, rest assured that Kato is fiscally strong. We own our own building, machines, and land outright (debt free) and we remain fully staffed to meet all of your needs.

We pride ourselves on being part of a global team that utilizes our size to serve our many customers across the world. Our global mission of delivering Satisfaction-PLUS is not merely a banner hanging on our walls; it IS the core of what we do. We consider ourselves a service company that just happens to manufacture precision components. We are passionate about earning your business to create a long-lasting partnership! I am particularly proud that despite all the turmoil of the past two years we have retained our position with all of our major accounts. Many of these accounts have been with Kato more than 15 years and counting.

Our quality policy is based on continuous improvement of the Kato Team members. We know that in being a learning and evolving organization we will, in turn, deliver Satisfaction-PLUS to you.

Our recent investments in training, machinery and technology allow us to deliver you the highest quality products and services at competitive prices.

Kato’s Partnership vision has three key targets:

Target 1: Let our engineering team assist you in designing the best spring, wire form, component or assembly for your application. Your engineers can start with the Cad Converter on our site; then our engineering team can assist from there.

Target 2: Let us be your solution provider helping you save money on your products. Our focus on cost reduction through Consignment Programs, Kaizen, Lean and Black Belt engagements have been key strengths at Kato.

Target 3: Top level service from initial quote to final shipment and everything in between. Quality, Thoroughness, and Speed of communication within the Kato Team to meet customers needs is a fundamental business practice to ensure Satisfaction-Plus to our customers.

We at Kato Spring appreciate your taking time to visit our website and hope at some point we can get to know you as a customer, a partner and a friend.

Sincerely,

Jim Grueser

Executive Vice President

A MESSAGE FROM OUR VICE PRESIDENT