Author: Kevin J. Handerhan : 12/02/12

9031 Ley Road Houston, TX 77078 Phone: 713-670-9007 Fax: 713-670-7172 www.rosemachine.com

Rose Machine is a rough, semi-finish and finish machine shop supplying mission critical parts to the oilfield, midstream oil and gas, petrochemical and related industries. The business was established in 1995 by Richard Rose and began operations at the present Ley Road address in 2002 in a single building with a few small, used machine tools doing only rough machining. Today the facility has over 110,000 sq. ft. with single lift capability to 125 tons and employs about 125 people. There are over 75 machine tools including the largest horizontal boring mill, the HBM with the highest horsepower spindle and the largest capacity CNC VBM in the Southwest. Rose also has a full service, nine-station computerized welding cell that offers robotic, submerged arc and manual welding.

This acquisition will enable EGI to expand its capability to provide one stop solutions for its customers as most of the parts are steel forgings from both customer supplied or purchased material. ERM will continue its practice of purchasing the best value raw material when called upon by its customers.

Richard Rose will join ELLWOOD as President of ERM and will report to me. Richard and I believe that combining the knowledge, expertise and entrepreneurship of the company he has built with the resources of EGI will be a powerful combination providing the best value to existing and new customers alike.

Kevin J. Handerhan

Chief Operating officer – Forgings and Castings

ELLWOOD Group, Inc.