S.A.L. Limited Releases President's Report To Shareholders

"Throughout the past year, your company has realized the benefit of the continuing strength in the local construction market, a trend that has allowed further success during a period of increased competition and rising costs. This positive direction is demonstrated in our final sales of $20.2 million, an increase on the previous year of over 7%. Once again, it is with gratification that I am able to report to you, that the above trend was experienced in all divisions of the company.

That said, this year's net income from the operating company of $1.90 million, is down on the $2.08 million from last year by almost 8%. This is a result that although satisfactory, is one that our future strategy aims to improve upon. It should be noted that the above comparison is based upon pure operating results and therefore excludes last year's net gain on the sale of land and transfer from the general reserve. However, a similar comparison to fiscal 2001 shows that this year's net income is ahead by 12%.

The balance sheet is further strengthened with net assets per share at a value of $50.19 and earnings per share of $7.13. Our cash position is in line with previous year-end levels at $3.9 million, a position that provides sufficient liquidity to enable the Directors to declare a second half-year dividend of $6.50 per common share. When this is taken together with the earlier half-year dividend of $4.25 it brings the annual total dividend to $10.75 per common share.

This year has brought to the fore the uncertain nature of the construction industry, as one of ease of entry and exit. Bearing this in mind, revised and improved credit control facilities have enabled your company to stay in a stable yet competitive position. The introduction and stabilization of new product ranges have also aided in improving our trading position, while the traditional product ranges in all divisions have fared exceptionally well.

Continuing the trend of previous years, significant capital has been allocated in fiscal 2004 for plant and equipment replacement. In particular, provision has been allowed to purchase a new Concrete Block factory to upgrade the production facility at Southampton. In addition to this, a provision has been made for additions and improvements in the control equipment in the Readymix Concrete Department. As we become increasingly reliant on efficient and effective IT equipment and solutions, once again, a provision has been allocated to allow improvement in the current technology. In approving the above expenditure the Directors are aware that our future success will be by a further increase of sales coupled with a continued improvement in efficient work methods.

I take this opportunity on behalf of the shareholders to express my thanks to our many loyal customers. Similarly extending a thank you to our loyal and industrious staff, for their effort and service throughout the past year."

Signed by:

John R. Berg

President