Address Change:
As of January 1, 2005 Standard-Knapp's new mailing address is 63 Pickering Street, Portland, Connecticut 06480 USA. Our post office address for remittances remains PO Box 683. For more than half a century Standard-Knapp has occupied two buildings in Portland. Over the past 10 years, as manufacturing subcontracting became a larger component of our operations, we realized that we no longer required both facilities. Consequently, we have consolidated all operations to 63 Pickering Street, selling the building located at 127 Main Street. In addition to the direct cost savings, the benefits of occupying only one building include greater operational efficiencies and better communications.

Strike/Lockout:
Management and labor at Standard-Knapp reached a mutually acceptable contract in June of 2004. Although the strike/lockout lasted 10 months, relations have improved dramatically over the balance of 2004 and we will all be working together in 2005. Our goals of increased flexibility and lower costs have been achieved and we look forward to serving our customers more efficiently in the years to come.

Operations:
Standard-Knapp continues to design, manage, and support our machinery solutions from our primary offices in Portland, Connecticut. Subcontracting with our partners in the northeastern United States has provided us with the competitive edge necessary in today's business environment. We still maintain core manufacturing capabilities including some key fabrication and machine assembly at our main facility in Portland.

New Products:
Standard-Knapp exhibited two new models at the Pack Expo in Chicago this past fall. On display were our Pakmore continuous-motion case packer and our Versatron "Soft Catch" Case Packer with Active Product Transport module. Each of these machines features unique and innovative benefits to increase line efficiency and reduce operational costs. Our R & D plans include introducing additional new models over the course of this year, some of which will be on display at the Las Vegas Pack Expo in the fall of 2005.

Future:
Standard-Knapp continues with our mission to develop and deliver high quality solutions with unsurpassed customer service. We are wholly owned and managed by the employees of Standard-Knapp and believe this allows us to best focus on serving our customers. Our goal is "making packaging easy" for you. If you have any questions on this update, please don't hesitate to contact us.

January, 2005