Following on from previous notices in December and January outlining the reasons for the Energy surcharge and the level of charge that was applicable, I would like to update you on the position as from Monday 6th March 2006.

Even though gas prices remain highly volatile and the level charged for wholesale gas is still considerably higher than either budgeted for or forecast it is true to say that prices have fallen from the levels experienced in November and December 2005.

Therefore I am pleased to announce that with the exception of solid bricks produced from our Sedgley factory the surcharge on all other products from all our other factories will be removed. I can announce that in the case of Sedgley solid products whilst as previously stated the surcharge will stay in place it will be at a reduced level of £30 per thousand.

I would take the opportunity to thank you for your understanding and co-operation, I would however state that whilst I hope we do not need to re-introduce a surcharge in the future, should we experience levels of increase similar to those seen at the end of 2005 and the beginning of 2006 we do reserve the right to review our position.

Energy surcharge levels as from 6th March 2006

Sedgley Solid Products:              £30.00 per 1,000
Marlborough Smooth Red
Dudley red Smooth
Silurian Smooth Red
Victorian Red Multi
All Solid Blue Products


Mark Morris
Operations Director: Sales

6th March 2006