GTP NEWS ITEMS

AMERICAN VETERANS

In another instance of putting its money where its mouth is, GTP has been fortunate to hire several American Veterans. Currently GTP has six Veterans working in various jobs and locations. In recent years the number of Veterans employed by GTP has risen to as high as 10 persons. Current Veterans include 3 Vietnam Veterans, including a US Army Battalion Commander and a US Marine Corps Battalion Commander.

In 2001 GTP’s Petoskey branch was recognized by Governor John Engler and Major General E. Gordon Stump, Adjutant General of Michigan for its continued support and hiring of Military Veterans during the Michigan Works! for Veterans campaign. These Veterans are valuable employees, contributing not only to our country through their military service but to the mission of GTP Industries to provide employment and training services for persons with disabilities and other barriers to employment.

GTP TAKES OVER REMAINDER OF VENTURI OPERATIONS

Following a series of negotiations over the winter, GTP and one of its primary business customers, Venturi, agreed to a new business arrangement beginning May 1, 2004. Venturi had explored various options to cut costs by moving its operation elsewhere. Given the fact that the work contracted to GTP provides employment and training opportunities for between 20 and 30 of GTP workers with severe disabilities, a plan was proposed by GTP to keep Venturi in Traverse City where it is located in GTP’s Traversefield production plant. The plan includes Venturi maintaining office space for its sales and management team in the Traversefield building with GTP taking over the 6800 square feet of warehouse space Venturi leased from GTP.

Venturi Targard Assembly Machine

GTP now operating

GTP will also assume responsibility for Venturi’s inventory, Targard® assembly machine, and its shipping operation. GTP has also hired Venturi’s Warehouse Manager as a new Production Manager to oversee the Venturi operations.

On balance this new arrangement will not only save Venturi money but will bring new revenue and work opportunities to GTP Industries. Under new owner Tim Dutmers’ leadership Venturi has increased orders to GTP by 12%-15% in a year and continued increases at that level on into the future are forecast. This means new work and new wage earning opportunities for GTP client workers at Mancelona, Aero Park, and Traversefield.

Toothbrush Assembly room at work on a huge Venturi order for export

ANNUAL REPORT

October 1, 2002 - September 30, 2003

Friends of GTP Industries

In spite of a year filled with challenges of significant proportion, both in terms of training services and business/commercial operations, GTP strengthened its efforts and focus on the primary mission of employment and training supports and services for persons with disabilities and other barriers to employment. The fruits of these efforts are that the company remained fiscally strong, and in fact, was able to provide more than $125,000 in employment and training services above our contract with Great Lakes CMH. Some of the major challenges included one CMH cutting their contract with GTP in half, which reduced the number of persons served from 45 to 25 individuals. Additionally 10 staff lost their jobs and over 20 persons served lost their training opportunities at GTP. Later in the year an excellent industrial work enclave providing up to 10 jobs was lost due to the company filing for bankruptcy. These challenges did not preclude other positive events occurring during the year, including:

·  Selling the Rapid City building to North Country CMH.

·  Receiving a HUD grant to help build a third duplex for Northern Living Non Profit Housing Corporation in Mancelona.

·  A kitchen service contract with Interlochen Center For The Arts providing summer employment for 25 Traverse House members.

·  All time high of over $350,000 paid in wages to persons with disabilities and other barriers to employment.

·  Development of a new manufacturing enclave providing 25 jobs for persons served in an industrial setting.

·  A new partnership was developed with Northern Living Alliance For Independent Living and the Deaf and Hard of Hearing Clearinghouse, with MRS continuing as a third partner.

·  GTP received an employment and training grant from M-TEC and the Michigan Economic Development Corporation.

All told, GTP continues to be the premier employment and training business for persons with serious disabilities in Northwestern Lower Michigan. We look forward to another successful year in 2004 and we wish to express our deep appreciation for all the support we received in meeting our mission.

Daniel G. Stoudt, Chair of the Board Steve H. Perdue, President/CEO

SERVICES

NUMBER OF INDIVIDUALS SUPPORTED

Petoskey Mancelona

● Community Employment-Custodial - 15 ● Community Integration

► In The Community - 8

► Organization Based - 32

Deaf and Hard of Hearing Services - 55 ● Community Employment - 16

● Competitive Employment - 1

● Organization Based Employment - 24

Traverse City

● Community Employment ● Community Integration - 18

► Enclave - 29 ● Community Volunteering (AVM/AmeriCorps) - 37

► Vending - 4 (Access Ability Volunteer Mentor Program)

► Custodial - 10 ● Competitive Employment - 25

► Hospitality Work Crew - 23 ● Organization Based Employment - 85

Total Served Average Number of Persons Served Daily

Current Year – FY’03 -360 Current Year – FY’03 -225

Previous Year – FY’02 -345 Previous Year – FY’02 -251

FINANCIAL INFORMATION

GTP responds to requests for information about products and services on an individual basis or through its brochures, website, presentations, tours, newsletter, etc.

annual_report03.doc