[To be printed on respondents' letterhead]



Dear [purchaser for resale]:

This letter is to inform you that Kryton Coatings International, Inc., and Procraft, Inc. have settled a civil dispute with the Federal Trade Commission ("FTC") regarding advertising claims for the Multi-Gard residential coating product, also known as Liquid Siding, Liquid Vinyl, and Multi-Gard R-20 (collectively referred to hereinafter as "Multi-Gard").

As part of that settlement, the FTC issued a consent order to cease and desist, which prohibits certain claims for Multi-Gard unless, at the time such claims are made, we possess and rely upon competent reliable scientific evidence. A copy of the order is attached. We consented to the issuance of the order for settlement purposes only and without admitting any of the FTC's allegations. The order requires us to request that our distributors and wholesalers stop using or distributing advertisements or promotional materials containing claims challenged by the FTC, unless we have competent reliable scientific evidence to support these claims. As one of our distributors or wholesalers, we are required to send you this letter as part of this settlement.

Specifically, the FTC order prohibits us from making any claims about Multi-Gard related to:

  1. its ability to reduce energy loss, energy costs, energy consumption, or utility bills;
  2. any R-value associated with the product;
  3. its insulation qualities as compared to any other materials, including insulation materials; or
  4. the benefits, performance, or efficacy of Multi-Gard

unless we have competent and reliable scientific evidence.

We request your assistance by asking you to discontinue using, distributing, or relying on any advertising or promotional material for Multi-Gard previously received from us. Please also notify any of your customers who resell these products and who may have such materials to discontinue using those promotional materials.

We shall be modifying our advertising and promotional material to comply with this order. New suggested advertising and promotional materials will be sent under separate cover.

Thank you very much for your assistance.


Nat Campbell, Jr.
Kryton Coatings International, Inc.

Christopher Scheevel
Procraft, Inc.

Enclosure as stated