Dear Friends,

This past year has been a transition for Klupengers. My father, Ray, has retired and is busy enjoying his well deserved time-off. While we are now corporately owned, we still maintain all the values Klupengers has stood for over the years. The foundation of our business is working hard to produce the best quality plants possible. Those of us in management and sales are not afraid to get a little dirt under our fingernails. Customer satisfaction is our most valued belief. We hope to help make your business better.


We at Klupengers are excited about the further development of our customer service function. Communication is important in any customer relationship. A better staffed customer service department to answer more of your needs is becoming a vital part of our business. We will be giving you more up-to-date information about your orders, more consolidated information, and better direct communication from Klupengers customer service personnel. Our in-territory sales staff is also dedicated to selling Klupengers products and is more readily available to take care of any of your needs.

Over the past year we have enjoyed developing our company and enhancing its property under our new ownership. We have invested in new acres of pot-in-pot production to further expand our Japanese maple program. We have also developed additional acreage of can yards, making more room for growth in container-grown material of various types.

Klupengers Nursery has always been quality conscious, but with our growth we are making it an even more formal process. A personal focus of mine has been to lead the enhanced quality control program. This should be evident in more consistent quality plant grades and overall quality. We will be continually documenting every process with attention to quality. The entire production team is involved and very excited about the outcome.

In our strategic plan to produce more of what the garden centers want, we have started a boxed specimen line of plants. While there are limited quantities at this time, our efforts will be to move more material into this program. We have also made alliances with other local growers to get larger, high quality specimen material to further enhance our product line. Another area of new products for Klupengers is a line of small fruit products. The plants are hardy, great retail sellers and taste good as well.

We are taking these actions to better serve you with products that are in demand. We hope that you are as excited as we are with these enhancements to our product line and to our operations. We look forward to your business and wish you a prosperous 2006/2007 selling season.

Sincerely,

Dan Klupenger
President