2007, another record breaking year has drawn to a close and the first few days of 2008 are upon us. Personally, I look forward to the coming year with excitement and anticipation – I feel confident that 2008 will be another great year for the Terraco Group. During the course of the year we will continue to aggressively target additional emerging and developing markets and will invest substantial resources to strengthen and augment our technical expertise in key product segments. This will ensure that we can continue to offer our customers the best quality while still ensuring that we provide value for money.

In 2007 we concluded several key initiatives, amongst others,  successfully opening another factory in Vietnam .

Continued construction booms in many of our key markets will continue to boost our significant growth rate and will help ensure that we meet our aggressive 2008 target. Coupled with this, increased expenditure on R&D and our continual efforts to expand our product range and improve our customer service, will ensure that Terraco remains ideally positioned to gain additional market share in our targeted markets. In line with the Group's mid-term expansion plans we aim to have an additional 3 plants operational by late 2008.

The ultra-environmentally friendly EcoLife™ range has been introduced in all relevant markets. The emergence of stricter environmental legislation - in particular for interior decoration products - in many of the developing markets in which we operate will continue to fuel the growth and importance of this product range. It is with pride that I say that Terraco rem a ins the most sensible environmental choice.

In recent years many fast developing countries are seeing the need for and are embracing the concept of industrial standards. It is very gratifying for me to see Terraco regularly being invited to propose parameters for such quality standards in many of the countries where we operate. It is our firm belief that proper industrial standards benefit everyone – architects, contractors, clients, property owners, future tenants as well as builders and material producers – helping to ensure that customers are getting the right products and preventing the undermining of quality by actors propagating sub-standard products. Terraco aims to offer quality, durability and unbeatable long-term value.

As usual, I would like to take this opportunity to thank all staff and employees for their continued efforts on behalf of the company - together we will shape the future of the Terraco Group.

Sincerely,
Göran Widström