May 5, 2008

Dear Customer,

I am writing to inform you that for the first time since 2004, we find it necessary to apply a surcharge to the base price of some of our products. The surcharge will be effective with shipments beginning Tuesday July 1, 2008.

As 2008 began, we announced our pricing to be firm through the calendar year. But, as in 2004, our "twelve month steel price agreement" turned out to be a "four month price agreement"! Consequently, sliding subframes and four-spring type suspensions and all of our service parts, will see a 13.1% surcharge; while body rails will see a 17.9% surcharge. At this time, single point suspensions and leaf springs will not bear a surcharge. These products may be adjusted separately at a later date.

The amounts of the increases are straight "pass through's" of our costs. We have not attempted to adjust our margins or recover the cost increases of various other components. In this way, we are trying to be as faithful to our promise of "firm pricing for the calendar year" as we can be. We wish we could tell you that this is the only price adjustment you will see from us in 2008, but the truth is we think it likely that there are more increases to come. We will do our best to provide you with as much forewarning as we can. Please call if you have questions.

Sincerely
HUTCHENS INDUSTRIES, INC.

Michael A. White
Vice President Sales