We are very grateful for the response we have received from various interested parties wanting to learn more about the new SNF manufacturing facility in Iberville Parish. As you will recall, SNF Holding Company on June 19, 2009, announced plans to construct a new water-soluble polymers manufacturing facility on an 800-acre site just south of Plaquemine on Louisiana Highway 405 (River Road). The proposed new facility, which will operate under the name Flopam Inc., is expected to be built in phases over five years, with a total capital investment of approximately $350 million.

Here is an update on some expected project milestones:

1. Engineering and initial regulatory permitting are ongoing. In Louisiana, projects must obtain a handful of key regulatory permits before beginning construction. Those include an air permit from the Louisiana Department of Environmental Quality and a wetlands permit from the U.S. Army Corps of Engineers.
2. We are hopeful that these regulatory permits can be gained in time for construction to begin late in the second quarter of 2010. During the construction period, Flopam envisions creating 250 construction-related jobs and making significant expenditures with local and state vendors.
3. Initial plant start-up is expected to occur approximately one year after construction begins. Assuming a late second quarter 2010 construction start-up, initial plant start-up would likely be in the middle of 2011. Flopam will eventually hire a permanent workforce of around 500 employees and 100 permanent contractors once the facility is fully operational (by 2015).

The proposed facility will produce acrylamide monomer and polyacrylamide powders packaged in bags or supersacks. Polyacrylamide is a water-soluable polymer that is commonly used to assist in removing impurities from water and in wastewater treatment applications. It is also used in oil and natural gas drilling and has achieved success in enhanced oil recovery.

SNF's end products are utilized throughout the world in various applications, including water treatment, mining and energy. These markets are driven by the increased scarcity of resources such as water, oil and minerals. SNF's products allow these critical resources to be recovered and/or utilized more efficiently. Environmental, health, safety and security management systems also are an integral part of SNF operations in the U.S. and around the globe, and Flopam's commitment is to operate a safe and environmentally sound facility. The facility would comply with all environmental rules and regulations and utilize Lowest Achievable Emissions Rate standards and Best Achievable Control Technology requirements.

Flopam looks forward to being a good neighbor and participating in the community. At other U.S. locations, SNF has an active community involvement program where it supports and participates in local organizations, schools and emergency services.