May 19, 2008

Hydraquip Distribution Announces the Expansion of their Connector Products Division

Industry veterans Kevin Schneringer and Nick Robbins join the team.

Houston, Texas. May 19, 2008. Hydraquip Distribution, Inc. has announced the hiring of industry veterans Kevin Schneringer and Nick Robbins. The two men, who each have more than a decade of experience in the hose and tubing industry, will work in the hose connector products division.

Both men come to Hydraquip from Hose Masters LLC, where they were owners and partners. “These are major hires for us” said Hydraquip CEO, Richard Neels “Hose Masters LLC provided Kevin and Nick with a solid foundation and skillsets that will add significantly to our hose connector products division. In fact, additions like Kevin and Nick signify our continuous efforts to provide excellence in sales, strategy, and service in all stages of our hose and connector division operations.”

Schneringer brings with him a wide range of experience in management, sales, and repair in the hose and connector industry. He has over 13 years of experience in establishing sales goals, managing employees, hydraulic hose assembly, and stainless/copper tubing fabrication. Kevin and his wife, Sarah, reside in Oklahoma City, have been married for 8 years, and have three children; Abigail 6 yrs, Hannah 4 yrs, and Connor 3 yrs. In his off time, Kevin enjoys playing T-ball with Abigail and deer hunting with Hannah.

Besides a background in sales that includes a demonstrated skill in new customer generation and existing client retention, Robbins’ experience also includes inventory, hose fabrication, and hydraulic repair. Nick and his wife reside in Oklahoma City, have been married for seven years, and have two sons, Blake 10 yrs and Bryce 4 years. In his spare time, Nick enjoys playing soccer with the boys, fishing, and hitting the course for a round of golf.

“These two professionals have the skill sets and industry expertise needed to deliver solutions for a broad range of business challenges” added Neels “We are very pleased to have them with us, and look forward to working with them to grow strategically and further strengthen the leadership of our Connector Products Division.”

January 1, 2008

Employee Owned Holdings Inc. President and CEO to Retire

Anthony J McGarvey, a 28 year company veteran, has retired, leaving Richard Neels to be his successor.

Houston, Texas. January 4, 2008. On December 31, 2007, Employee Owned Holdings Inc. announced the retirement of President and CEO Anthony (Tony) J. McGarvey.

A member of the company for 28 years, Tony started with Hydraquip in 1979, was promoted to Sales Manager in 1982, and then to vice president in 1984. In 1989 he was promoted to company President. During his tenure as President, Tony guided the company through many major milestones, most notably the implementation of a 100% ESOP in 1998. Additionally, Tony oversaw a defining company transformation when on January 1, 2007 Hydraquip was split into three separate entities: Employee Owned Holdings, Inc., Hydraquip Distribution, and Hydraquip Custom Systems. This allowed for each entity to focus on their core competencies, and better serve their customers. A true forward-thinking leader, Tony’s steady guidance has been instrumental in establishing Hydraquip as one of the leading Fluid Power Distributors in Texas, Louisiana, and Oklahoma.

Richard Neels, President of Hydraquip Distribution, was named to take over as CEO and President of Employee Owned Holdings, Inc. on January 1, 2008.

“I am grateful to have spent these past 28 years with this great company, and am deeply honored to have had the opportunity to lead it for the last 18 years” McGarvey said in a statement. “Richard has been preparing for his new role as my successor for several years, and 2008 is the right time for him to assume his place as the leader of the companies.”

Neels started with Hydraquip in 1976, and has since served in virtually every capacity within the company. His tenure has been filled with sales, systems, repair and purchasing experience; and his product knowledge and leadership skills have proven to be invaluable. In 1991, Richard became Sales Manager, and in 1993 was promoted to Vice President of Sales and Marketing. In January of 2007, when the company split into three entities, Neels became President of Hydraquip Distribution Inc.

“I am excited about this opportunity, and it is my desire to sustain the profitable growth that we have experienced over the years and to continue to be an enjoyable place of employment for all of our owners” commented Neels. “The company is in a position of real strength right now - we’re doing well financially, and our people are passionate and dedicated, so it’s definitely going to be fun!”

January 15, 2007

To Our Valued Customers:

Hydraquip Corporation has undergone several changes that we feel will better serve you, our client. We have separated the component sales and systems groups into individual companies. The original component sales group is now named Hydraquip Distribution, Incorporated; and the systems group is now named Hydraquip Custom Systems, Incorporated.

These changes were brought about by significant growth within both groups. Separating them into two companies greatly streamlines our processes, and enhances our ability to focus on what each entity does best. What this means is you can expect even better service from us - both right now, and in the future.

The purpose of this letter is to make you aware of these changes, and to let you know that from this point forward, the same group of people will be fulfilling your needs under the name of Hydraquip Distribution, Inc. This should be a seamless change from your standpoint. It has always been our employee-owners' goal to provide you with fluid power solutions, and not simply "sell part numbers", and that goal remains unchanged. We will continue to utilize reliable, leading-edge technology that improves longevity, enhances productivity, and simplifies maintenance in a cost-effective manner.

The physical address & phone number remain the same.

Hydraquip Distribution, Inc.
4723 Pinemont
Houston, TX 77092

Phone: 713-680-1951

Please feel free to contact any one of Hydraquip Distribution, Inc's management team, consisting of the following:

In addition, we have the incredible Regional / Branch Manager team of Tim Nichols (North Texas), Gordon Shellhaas (San Antonio), Jim Blaylock (Oklahoma), Joe Simon (New Orleans), and Scott Nelson (Houston).

On behalf of all employee-owners, we wish to express our sincerest appreciation for your past, present, and future business. It is because of valued customers like you that we are able to grow and make these positive changes. We look forward to serving your needs and exceeding your expectations in our future endeavors!

Sincerely,
The Employee-Owners of Hydraquip Distribution, Incorporated