Conestoga Wood Specialties Corporation Businesses for the Bay Annual Meeting November 3, 2005

Conestoga Wood Specialties Corp. 41-year old PA based cabinet component manufacturer 41-year old PA based cabinet component manufacturer Headquartered in East Earl, PA Headquartered in East Earl, PA 7 locations predominantly along the East Coast 7 locations predominantly along the East Coast 4 locations in Chesapeake Bay Watershed 4 locations in Chesapeake Bay Watershed Over 2,200 employees Over 2,200 employees

Corporate Structure 3 distinct business units 3 distinct business units –Dimension Mills – Process raw lumber into useable material –Custom Business Unit – Produces components one kitchen at a time in excess of 10,000 pieces per day –Contract Business Unit – Mass producer of SKU-based components in excess of 20,000 pieces per day

What We Do Manufacturer of a full line of wood components to the kitchen and bath industry Manufacturer of a full line of wood components to the kitchen and bath industry Procure and process rough lumber into finished goods Procure and process rough lumber into finished goods Manufacture over 30,000 finished pieces per day company wide Manufacture over 30,000 finished pieces per day company wide

Product Offering The largest cabinet component manufacturer in North America The largest cabinet component manufacturer in North America –Doors –Mouldings –Drawer boxes –Cabinet systems –Accessories Complete offering of wiping stains and opaque finishes for the custom kitchen market Complete offering of wiping stains and opaque finishes for the custom kitchen market

Byproducts of Operations Wood Waste – sawdust, wood chips, scrap Wood Waste – sawdust, wood chips, scrap Packaging Materials – cardboard, pallets, metal strapping, etc. Packaging Materials – cardboard, pallets, metal strapping, etc. Finishing Emissions – VOCs, VHAPs Finishing Emissions – VOCs, VHAPs Universal Wastes – Light bulbs, batteries, electronics Universal Wastes – Light bulbs, batteries, electronics Oils and lubricants Oils and lubricants

Wood Waste Management Yield maximization technologies Yield maximization technologies Utilization of cosmetically imperfect wood Utilization of cosmetically imperfect wood –Paint Grade material Sawdust recycled into cattle bedding, wood heating pellets, and composite decking material Sawdust recycled into cattle bedding, wood heating pellets, and composite decking material Also used as a fuel source for select Conestoga locations Also used as a fuel source for select Conestoga locations

Packaging Materials Management Zero Pack Program – Reduces packaging materials by 50% Zero Pack Program – Reduces packaging materials by 50% Skid Reclamation Program – skids are collected from customers and reused or recycled Skid Reclamation Program – skids are collected from customers and reused or recycled Cardboard and metal strapping is recycled Cardboard and metal strapping is recycled

Finishing Emissions Constant reformulation of finish materials to lower VOC content Constant reformulation of finish materials to lower VOC content Testing new coating technologies to lower VOC emissions Testing new coating technologies to lower VOC emissions Reclaim finishing materials from automated coating line for reuse Reclaim finishing materials from automated coating line for reuse Distill contaminated cleaning solvents for reuse Distill contaminated cleaning solvents for reuse

Universal Waste Management Batteries, lamps, and computer monitors are recycled at all CWS locations Batteries, lamps, and computer monitors are recycled at all CWS locations Transitioning to low mercury lamps Transitioning to low mercury lamps

Oil and Lubricant Management Service own fleet of trucks Service own fleet of trucks Machinery and automotive oils are collected and recycled Machinery and automotive oils are collected and recycled Waste oils used as heating source Waste oils used as heating source

2004 Pollution Prevention Efforts Wood Waste – Over 20,000 tons recycled/reused Wood Waste – Over 20,000 tons recycled/reused Cardboard and paper – 75 tons recycled Cardboard and paper – 75 tons recycled Scrap Metals – 40 tons recycled Scrap Metals – 40 tons recycled Finishing Solvents – 2,000 gallons recycled Finishing Solvents – 2,000 gallons recycled Finishing Emissions – 5,000 pound reduction Finishing Emissions – 5,000 pound reduction Hazardous Waste – 3,500 gallon reduction Hazardous Waste – 3,500 gallon reduction

Environmental Management Structure Environmental Management Environmental Management –Corporate Environmental Manager –Site Environmental Coordinators Environmental & Community Outreach (ECO) Team Environmental & Community Outreach (ECO) Team –Cross-functional team of Conestoga personnel

Environmental Management Manage all pollution prevention activities Manage all pollution prevention activities –Recycling programs –Employee education Maintain environmental permits Maintain environmental permits Manage proper waste disposal Manage proper waste disposal Conduct routine compliance inspections Conduct routine compliance inspections Works closely with state and federal environmental agencies Works closely with state and federal environmental agencies Manage state/federal environmental reporting Manage state/federal environmental reporting

ECO Team Manages Conestoga’s environmental and community efforts at each location Manages Conestoga’s environmental and community efforts at each location –Tree Donations/Conestoga Urban Reforestry Program –Community Involvement Habitat for Humanity, local park clean-up Habitat for Humanity, local park clean-up –Local school environmental education Field trips, Smokey Bear visits, tree plantings, educational grants, etc. Field trips, Smokey Bear visits, tree plantings, educational grants, etc.

ECO Team Projects Sponsored environmental education summer camp for inner-city children Sponsored environmental education summer camp for inner-city children Donated more than 120 trees to the greater Philadelphia area, cities of Reading and Lancaster Donated more than 120 trees to the greater Philadelphia area, cities of Reading and Lancaster Donated and planted trees with Habitat for Humanity in several communities Donated and planted trees with Habitat for Humanity in several communities

Future Plans Continue developing EMS Continue developing EMS Expand ECO projects Expand ECO projects –Include additional locales, schools, children Continue to research ways to reduce emissions Continue to research ways to reduce emissions Continue to explore waste elimination and/or reduction opportunities Continue to explore waste elimination and/or reduction opportunities