Dear Colleagues,

So far, this year has gone reasonably well for our company despite the Iraq conflict, the SARS epidemic and other crises and distractions that tended to discourage or delay American consumer buying and investment decisions. In fact, after a slow start to 2003, momentum picked up considerably in late spring, resulting in our best May ever.

Looking ahead to the second half of the year, we should not count on the economy to be of much help to our business. That means we will have to either increase our share of the window coverings market or move higher up the priority list with consumers.

Can we do both? Absolutely! There are enormous untapped opportunities awaiting us. Consumers are still buying homes or refinancing and renovating their existing homes, all at near record levels. The amounts spent on new counters, cabinets, floors and fixtures are staggering compared to what is invested in custom window coverings. For example, a new kitchen or bathroom countertop can easily cost the consumer five to ten times more per square foot than one of our high-end proprietary products such as Silhouette^® window shadings. Yet, our custom window covering products are more visible and will provide multiple benefits for many years. Frankly, Hunter Douglas is an exceptional value.

To seize the opportunities and meet the challenges in the market place, the people of Hunter Douglas must ensure that, day after day, year after year, we provide the best quality, the best services and the best dealer training and motivation, and not only the best in our industry, but the best in the entire home décor/home furnishings market. And we must continue to improve in each of these areas. Yesterday’s standards are simply not good enough for today or tomorrow.

Hunter Douglas is an outstanding company with a brilliant history; however, our future success is not assured. It’s up to us: you and me and all of us together. To move this company forward and strengthen our industry leadership, we must all pull and push in the same direction. If we do so and if each of us does his or her share and a little bit more, we will exceed our most optimistic expectations.

I’m sure you want to make our company better and better and the very best it can be for employees, as well as customers. To that end, I would welcome and encourage your recommendations and ideas. Let me hear from you!

Thank you for your loyalty, your support and your contributions.

All the best,

Marv Hopkins