HISTORY

CENTENNIAL BROCHURE. THE FIRST 100 YEARS 1893 - 1993

In, 1893 the year Governor General Stanley donated hockey's most popular trophy, and three years before gold was discovered in the Klondike, Ernst Ferdinand Walter purchased the business from the estate of his former employer, which he registered as E. F. Walter and Co. Registered in Montreal, Canada.

In the 1920's, Ernst Walter's son Arthur joined the business and together they grew the offering of various felt qualities to meet the needs of Canada 's developing manufacturing sectors.

During the war years of 1939-45, approximately 70% of the Company's sales were to manufacturers of armaments, ammunition, ships and other wartime requirements.

Between 1945 and 1951, Kenneth, Arthur, and Donald , the three grandsons of Ernst Walter, joined the Company.

Early in the 1960's additional capabilities and equipment were acquired to cut felt to customers' specifications largely supplied to Canadian manufacturers. As these capabilities were being developed, an opportunity was made to market felt and other types of cut and packaged footwear products, initially subcontracted to the Footwear Finding Company in Cowansville , Quebec , but later acquired and moved to newly acquired Company facilities in Toronto .

Customers using felt cut parts needed similar components cut from rubber, plastic, nonwovens and cork. This led to product and market diversification and a growing portion of the Company's sales to Canadian manufacturers.

In the late 1980's, Canada negotiated the Free Trade Agreement. This motivated and enabled the Company to establish niche markets in the United States .

As Canada entered into a long and serious recession in 1989, especially harmful to its manufacturing sector, the Company was able to increase exports significantly. This remains an important strategic direction for the Company.

In the early 1990's, a relationship developed with a European supplier of footwear accessories, who provided specialty products to augment the range produced in Canada . This association created an opportunity to export selected products for the European markets.

In 1992, the acquisition of a CAD/CAM waterjet cutting system for processing a wide range of materials continued to represent the chosen direction of increasing the Company's capability of providing value added, higher technology products and services to manufacturing, construction and consumer product industries, in Canada and other countries.

The severe competition and recession of recent years has required this, now fourth generation, family Company to focus its efforts towards improving customer service and productivity, and developing new products, capabilities and markets.

Courage, vision and continuous improvement are needed to build upon what has been achieved as the Company enters its second century.

1n 1990, Tim Walter, Ernst's great grandson and Don's son, joined the company.

In 1991, the Company embarked on its journey towards Total Quality and Continuous Improvement and involved employees in stating this objective. This included incorporating and embracing four Principles by which the Company is governed.

•  CUSTOMER SATISFACTION
•  EMPLOYEE EMPOWERMENT
•  PEOPLE SKILLED LEADERSHIP
•  PURSUIT OF EXCELLENCE

In 1996, the Company achieved ISO 9002 and commenced the development of our Strategic Profile, which was completed in 1997. This document compiled initiatives, which addressed the opportunity to continue towards the realization of Company Goals.

From 1997 to today, the company has invested in additional manufacturing equipment, Management Information Systems and Technology and professional development of its Managers and Employees.

Tim Walter became the Company's fifth President in 2000, while Don Walter remains as Chairman of the Board.

In January of 2002, the company relocated its Montreal facilities to a new facility in Montreal ; consolidating manufacturing, warehousing and distribution operations, to a larger and more efficient plant. This transition provides the opportunity to continually improve our productivity, efficiency and service, to our Customers benefit.