Letter to Customers

Dear Valued Customer:

As you may have heard, the United States Department of Commerce issued a preliminary determination today that BTIC, a Chinese manufacturer of steel cylinders and a major supplier of Cyl-Tec was receiving subsidies. The DOC therefore imposed a preliminary duty of 22.34 percent on imports of steel cylinders from China.

As an initial matter, we would like to emphasize that this is a preliminary determination and a final determination will not be issued until all parties have an opportunity to comment on this decision. BTIC does not believe that it has received illegal subsidies and is vigorously defending itself in this case. The final determination is not due until April of next year. Furthermore, the determination that BTIC may be receiving subsidies is only part of the story. These duties cannot be made final until the U.S. International Trade Commission finds that Norris is being injured due to imports of steel cylinders from China. We do not think that Norris has a credible case.

Cyl-Tec as always remains committed to "Setting the New Standard" by providing excellent service to its customers even at a time when Norris seems intent on disrupting the U.S. high pressure steel cylinder market. As we have always done, Cyl-Tec inventories a substantial supply of steel cylinders to meet our customers´ needs. This has not changed. We have inventory to meet your needs for the foreseeable future.

If you have any questions, please contact me.

Jim Bennett
President
Cyl-Tec, Inc.
Ph. (888) 429-5832 Ext. 202
jimb@cyl-tec.com