Customer Survey Results

(December 20th 2007)

New Facility leads to Substantially Improved Performance

In 2005 Pipeline Engineering's manufacturing facilities had reached full capacity and, to meet the demands of the industry, the Board of Directors took the decision to invest in new facilities and in state of the art manufacturing equipment, new production processes and modern design techniques. The new facilities were opened in the summer of 2006 and the new equipment and processes were fully operational by January 2007.

This extensive investment has led to a 40% increase in our throughput over the last 18 months and also enabled us to improve lead times and achieve an average on time delivery of 96%.

Survey Results

To ensure we focus on providing the best service to our customers, we commissioned an extensive survey in October 2007 of 3850 customers around the world.

The key results of the survey measuring our customers' opinion on our performance were most encouraging:

QUALITY
Good 43%
Above Average 42%
Average 14%
Below Average 1%
Poor 0%

PRICE
Good 13%
Above Average 33%
Average 47%
Below Average 7%
Poor 0%

DELIVERY
Good 18%
Above Average 32%
Average 40%
Below Average 6%
Poor 4%

SERVICE
Good 28%
Above Average 33%
Average 28%
Below Average 8%
Poor 2%

OVERALL IMAGE
Good 29%
Above Average 47%
Average 23%
Below Average 1%
Poor 0%

* Quality - With 99% of our customers stating that quality is average or above, the result speaks for itself.

* Price - Over 90% of our customers consider we give value for money, confirmed in the 30% growth in turnover per annum. Only 8% think our prices are too high - everyone would like lower prices, so we have a continuous improvement programme to ensure that our customers will continue to receive good value for their money.

* Delivery - Since January 2007 we have been continuously improving delivery and lead times, month on month, with deliveries recently reaching an average of 96% on time, with over 40% exceeding customer's expectations by going out early.

* Service - Whilst 90% of our customers were happy with our service, the survey highlights that this is an area we must continue to improve. The move to the new facility may have had a short term impact on the quality of our service, but we believe that with improved procedures throughout the business, our level of service will also improve.

As a growing, progressive and forward looking company, it is always our aim to continue to improve our service to our customers, so it is pleasing from the results of this survey that we are getting results but we still need to strive for perfection. Therefore if you personally have any suggestions on how we can provide a better service to your company please send your suggestions to customerservice@pipelineengineering.com .

For every entry we promised to make a contribution to charity. As a result of this survey PE will be donating 838.00 GBP to World Vision, to support a Well and Water Distribution Building Project in Africa. Thank you to everyone who completed the survey to help raise this sum of money.

Congratulations also go to Robin McDonald of HESS (GEA) Ltd, whose name was drawn at random from the replies to the survey and who will be receiving an Apple iPod.