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Contact: Steve H. Perdue

231.922.4886

GRAND TRAVERSE INDUSTRIES LANDS STATE OF MICHIGAN PROJECTS

Represents Largest Contract in GTI History

TRAVERSE CITY, MICH., JANUARY 22, 2007 –Grand Traverse Industries (GTI) is now producing plastic bags for the State of Michigan, the culmination of more than three years of work by GTI management. GTI’s portion of the work was awarded to Empire Equipment and Supply of Detroit, who in turn will source the bags via GTI.

Based on State of Michigan purchasing projections, Grand Traverse Industries Chief Executive Officer Steve Perdue estimates the project could be worth more than $500,000 in annual revenue. The contract is a one-year award, with scheduled renewals for an additional two years.

The project encompasses plastic trash can liner bags to be used by the Michigan Department of Corrections, in State offices, and at State Parks. Five different sized bags will be produced by GTI.

The project will also provide significant work for Traverse City-based Plascon, the company that supplies the raw film materials used in bag production. Plascon is a longtime Grand Traverse Industries supply chain partner.

Commenting on the announcement, Grand Traverse Industries Chief Executive Officer Steve Perdue said, “We have worked long and hard to make this happen, and I am delighted that these bags -- which will be used all over Michigan – will be produced here in Traverse City. And, this significant project will also allow us to return to a full crew in our plastic bag operation. The State project will have a direct impact on the employees of Grand Traverse Industries and Plascon, and on the community as a whole.”

Empire Equipment & Supply President Ron Jones Sr., added, “We are glad to be working with such an excellent partner in Grand Traverse Industries and to fulfill the needs and requirements of the State. This will maintain and create jobs in both the Grand Traverse and metropolitan Detroit areas.”

Other GTI plastic bag customers include Northern Michigan supply Alliance, (NMSA is Munson Healthcare’s supply chain manager) Northwestern Michigan College, and other organizations throughout northern Michigan.

Founded in 1974, Grand Traverse Industries is a private non-profit corporation providing packaging and assembly, plastic bag manufacturing, vending, janitorial service, interpreter services for the deaf and hard of hearing, and more. It trains and employs more than 300 persons with disabilities. GTI’s customers include some of the most prominent manufacturers and enterprising small businesses in the Grand Traverse area. Grand Traverse Industries operates offices in Traverse City, Petoskey, and Mancelona.

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