S&B Letter

June 26th, 2007

Dear Valued Customer,

After 10 years of loyal service we say goodbye to Robin Stange. Robin retired on May 31st and we wish her the best of luck in her retirement. While we will miss Robin, we welcome our newest employee, Geri Kuechler. Geri comes to S&B with 17 years of experience in importing, purchasing and marketing. She was previously responsible for a purchasing staff that imported 450 containers annually, opened a buying office in China, and was on the new product development team. Geri also has experience in acquiring and managing licenses. Since Geri began with us in March, we have already acquired a Dow 30 company license that we will unveil later this year for shipment in the Spring of ‘08. This is a major breakthrough for S&B and we are excited about this opportunity as well as a number of other exclusive products in development. Geri’s marketing and purchasing expertise will enhance the product offerings and we are excited to have her on board.

Geri will also be assisting in creating our one of a kind, themed mixes. This month you will see our new "Super Sour Simpson’s" and "Back to School" candy and toy assortments as well as an exciting 59¢ plush mix that will work great even in a small 24" crane. The Simpson’s Movie will be released worlwide this summer and will appeal to young and old alike. Our "Super Sour Simpson’s Mix" is ready to ship now, weeks before the movie release. Everyone here at S&B takes the time to search movie websites so that we are prepared to provide themed mixes to support big movies like "Spiderman", "Surf’s Up", and now "The Simpson’s". The Super Sour Simpsons’s mix combines the hottest selling sour candies with some great licensed Simpson’s plush keychains, Simpson’s Gummie Fruit Snacks, and even a Simpson’s Wrist Watch!

We have expanded our flyer from 8 to 12 color pages this month so that we can feature our incredible toy mixes and toy toppers. Our Toy mix sales have exploded in the last few years and now we can bring in truckloads of great toys, even big time licenses like Jimmy Neutron, Loonie Tunes, Marvel Super Heroes and lots of other great product that we can deliver to your door for under 4 cents. There isn’t anyone else in the industry that can do this. Our Topper mixes are even better. They add the spice to any candy or toy mix to really boost sales. Whenever I visit one of our crane locations, I always have on hand a bag of toppers to dress up the crane mix. Big toys are the best "advertising" that you could add to your crane and for just pennies you will really see the difference.

Even though the heat of summer seems to have just started, it’s time to start thinking about back to school as well as the biggest "candy" holiday of the year, Halloween. Our end of summer crane volume is strongly in part from back to school shoppers, and the "Back to School" candy and toy mix is right on time with pencils, note pads, bubble pens, licensed crayons, rulers, alphabet letters, bookmarks, and back pack clips. The "Back to School" candy assortment features Giant Now & Laters, Nummy Bears, Pez Rolls, Jujyfruit boxed candies, Lunch to Go gummies and Lot’s of other great candy favorites.

When my kids start back to school in August and get back together with friends, they almost instantly start talking about Halloween and what costume they will be wearing. Halloween is really a big deal for kids and their payoff is the big bag of candy that they will have on October 31st. Our Halloween crane mix is an exciting and constant reminder, leading up to the big day and is one of our best sellers of the year. We will be featuring our Halloween mixes in our next flyer but will have them available to ship on August 20th. It is one of the best opportunities of the year to completely dress up your crane for the holiday. On November 1st all you have to do is mix in new product to make Halloween magically go away.

To make room in our product line for the many new mixes that we introduce, occasionally we must discontinue some of our classic mixes. You will notice that our 2.5¢ All Candy mix has been removed from our line. For those of you who faithfully order that mix, we suggest a combination of the 1.9¢ Candy Mix and the 3.5¢ Fresh Start. Your product average will be 2.5¢.

Thank you for your continued business.

Sincerely,
Brian K. Riggles
President