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

I am gratified to be able to report to you that the second six months of fiscal 2004 continued the successful trend that was developed in the first six. Total sales revenue for 2004 rose 10.4% to $ 22.32 million, or up by $ 2.10 million on the $ 20.22 million achieved in fiscal 2003. With net earnings of $ 2.71 million this year's performance shows an improvement of $ 0.81 million or 42.5 % on that of last year. The rise in earnings per share from $ 7.13 to $ 10.15 is reflected in the above increase in net earnings.

In that all of the various departments of the company contributed to achieving this very pleasing result, our position looking forward is seen as strong. With the construction industry continuing to exhibit even higher growth for the coming year, I am confident that the future performance will also be one of solid growth.

After consideration of the above and taking into account the favourable cash position at year's end of $ 3.6 million the Board of Directors have declared a dividend of $ 7.50 per common share. The total dividend for fiscal 2004 is therefore $ 14.00 per common share, when the first half dividend of $ 6.50 is included.

As in previous years a significant capital allocation has been set aside to allow the purchase of further plant and equipment to supplement and improve our current operational position. Major amid this will be the provision carried forward from last year to purchase and install a new Concrete Block factory. Further enhancements in the stores and yards of the Retail division are also included, together with improved IT and telecommunication systems.

Coupled with the above-mentioned improvements the Directors are aware of the need to continue to add new product lines, and to ensure that we strive to offer a better quality product in terms of both goods and service to all of our customers. To do so the forward strategy includes outsourcing expertise when and where required, increasing the educational opportunities for our employee's, and formulation of an organisational structure that will fit with our future plans.

This year as in past years I take this opportunity to thank our loyal customers for all of their business, and to assure them that we will continue to work hard to satisfy their requirements.

To our employees I offer congratulations on our continuing success, and thank one and all for the effort and industry that they displayed during the past busy year.

John R. Berg

President