May 1, 2012

Announced Price Increases

In the pas 2-4 months there have been substantial increases in raw material, base oil, and additives. These market influences have caused upward pressure on finished lubricant prices.

The cascading effects of a 40% increase in the traded cost of West Texas Intermediate (WTI) crude oil since October 2011 combined with a 20% increase in the cost of Vacuum Gas Oil (VGO) since January 2012 have caused immediate upward pressures on base oils, the primary component in finished lubricants.

These raw material influences have driven up base oils by over 6% commencing in mid March 2012. Additionally, base oils are a favored dilutant of the major additive suppliers, therefore causing additive price increases as well.

The combination of these factors as well as increases in transportation and refining processing costs have escalated to a point whereas our suppliers of major and value brands have announced a price increase of 5-7%, effective May 21st, 2012.

Your servicing Windward Petroleum/G.H. Berlin representative can provide you specifics of each supplier’s increases.

We reserve to limit purchases to 110% of previous year’s bi-weekly average purchases. Orders placed will be shipped based upon standard lead times.

We appreciate your patronage and are committed to earning your business every day.

Thank You