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As a valued customer of Baggeridge Brick I would like to thank you for your understanding and co-operation with regards to the introduction of our energy surcharge. As previously stated in our December letters/notice when we outlined the reasons behind and the level of the energy surcharge that we have applied from 9th January, I can confirm that we have reviewed our current position and based on the price movements in past months and the forecast for February although gas prices have fallen from the levels seen in November and December prices still remain much higher than we would have expected to see and the situation is still highly volatile. Nevertheless, we are pleased to be able to substantially reduce the level of surcharge on many of our products as from Wednesday 1st February. The level of surcharge will be reviewed again at the end of February with a view to amendment for March depending on the future movement of energy prices.

I would take the opportunity to remind you that there is no surcharge in place at all on our wirecut facings from our Hartlebury 2 factory and our wirecut facings and GILT stock products from our Waresley factory. It remains our intention for the energy charge to be removed in total at the earliest sensible opportunity.

Energy surcharge levels as from 1st February 2006

Please see details below for full list of products:

Mark Morris
Operations Director: Sales

25th January 2006