Petron had a very good year in 2010 regardless of how you choose to measure results.

Our 2010 sales rebounded from recession affected 2009 sales by 38%. We saw robust growth in all facets of our business throughout the world except for cement in North America.

We hired highly skilled sales personnel in 2010 in China, India and North America. These tactical hires will help propel our sales even further in 2011.

Petron increased the strength and depth of our bench in Operations in 2010 by adding additional management and compounding personnel.

There was significant capital investment in plant and lab equipment in 2010.

One of achievements I am most proud of is our lost time injury record. We have now gone 11 years without a reportable lost time injury at Petron. That is a terrific accomplishment and one that any company would envy.

And last but certainly not least, our operating income for 2010 was 23% greater than our operating income in 2009.

I would like to take this opportunity to thank all Petron employees as well as all of our customers, distributors and suppliers for helping Petron to achieve the above mentioned accomplishments in 2010.

Sincerely,

John P. McHale

Executive VP/General Manager