IMPORTANT FREIGHT MESSAGE

August 1, 2008

Freight charges continue to be a huge issue for Grubco and any other company that relies upon other carriers to deliver their product. Fuel price increases, fuel surcharges, delivery area surcharges, residential and commercial surcharges, and now "dimensional weight" charges add up quickly. Increased regulations and new rules governing shipments of live animals are on the horizon. The list goes on and on and unfortunately gets longer and longer as UPS, FEDEX, USPS, and others find ways to increase their revenue. We are under their thumb and feel the pressure everyday.

Please understand that we are constantly monitoring shipping prices and trying to ship the best and most economical way available. Also please remember that a perishable live product is the most difficult package to ship.

We only charge you what we are charged by the carrier. When we get a discount, you get a discount. When we get an increase, you will get an increase. Hopefully this upward trend in freight and shipping costs will end soon and offer some stability to freight pricing.

You can go to any carriers website to determine freight rates. I will be happy to discuss any questions that you have.

Sincerely,
Dale Cochran, President
Grubco Inc