August 9, 2004
OSDB-610.04

TO: ALL OMAHA STANDARD DISTRIBUTORS

RE: Additional Steel Surcharges, September 7, 2004


About one week ago we received more bad news on the steel front.

Earlier this summer our steel suppliers indicated that they did not foresee any additional surcharges. Unfortunately, they were wrong. A little over a week ago we were informed that additional steel surcharges would be imposed later this month. (See copy of enclosed article from the August 2, 2004, issue of Automotive News.)

We are forced to pass these new surcharges on to our distributors. None of us are happy about this. Our competition is also being hit with these latest surcharges so you will not be at a price disadvantage.

The chart below shows what the total steel surcharges will be for our products loaded/shipped on and after September 7, 2004. These surcharges will be added to the August 2 distributor prices.

Product Total Surcharge
Service Bodies, Line Bodies, General Bodies, Toolboxes, Related Equipment, and Options 10%
OSV 10%
Wood Floor Platform and Options 8%
Steel Floor and Options 10%
Badger Bodies and Options 10%
Steel Racks/Sides and Options 10%
Bulkheads 8%
Landscaper Bodies and Options 8%
Hoists 8%
Liftgates 2%
Contractor Bodies, Dump Bodies w/o Hoist Package and Options 6%
Dump Bodies w/ Hoist Package and Options 6%

If and when the surcharges are reduced by our steel suppliers we will do the same for our customers.

Thank you for your understanding in this matter.

Thank you for your business. We hope that we continue to deserve it in the future.


We take pride in our products and in our association with our dedicated customers.