September 1, 2003 WHERE TO GO FOR THE BIG FISH

There is a old Chinese saying, "do not look in a tree for fish." After several years of negative growth in the non-residential markets, Reed Business Information's construction spending forecast for the remainder of 2003 shows welcome gains in both the non-residential industrial and institutional areas.

Industrial spending, coming off a down trend of -8.7% for 2001 and -24.1 for 2002 has been predicted to achieve a grow of +11.3% in 2003.

Institutional spending, while never falling to the depths of the industrial segment any time during the last few years is forecast to show strong growth in the year ahead. Up 10.9% for 2003 - as compared to 7.2% in 2001 and 7.8% in 2002. The largest growth area in this sector continues to be both private and public education, with the public sector seeing the most growth - with a forecast up 18.2% in 2003 as compared to a positive 11.8 in 2001 and 13.9 in 2002.

Non-residential construction spending as a whole is slated to increase 8.7% in 2003 as compared to a -4.1% rate for 2002 and 0.4% increase in 2001. Work these growth sectors to gain the greatest success. And if you want the big fish...go to the schools.

September 1, 2003 INVESTING IN OUR FUTURE

NesbittAire is more active than ever and busy taking immediate action to invest in our future to fully support your sales efforts. Recent activities include:

a Complete NEW literature will be issued to our representative offices in September, along with representative agreements identifying the new company and representative territories.

- Updated revised Selection Programs will be reissued in October.

- Donna Hicks returns as Manager of Inside Sales/Marketing. Donna will be invaluable in working with our sales representatives throughout all phases of the bidding/sale/delivery aspects of a project.

Her experience with the NesbittAire product line as well as her work to speed the delivery of marketing and sales tools makes her return a welcome boost to NesbittAire.

- Joye Chizek has joined NesbittAire as our Staff Marketing Consultant. Joye brings with her 20 years of marketing experience in the HVAC industry. With Joye's assistance, Donna and NesbittAire will be able to expand promotional and product visibility in the HVAC and educational markets, as well as increasing our ability to directly communicate with our sales force.

- A new sales tool that will allow you to calculate the lower cost of NesbittAire ownership to your engineers, end-users and facility groups - RIGHT BEFORE THEIR EYES USING THEIR OWN NUMBERS! We encourage you to ask Donna for your copy of this program so that you can make copies and be sure to arm every member of your sales team with this practical and convincing sales tool.

All of these above actions have been taken in order to respond and support our most important customer: our Representative/Agent network. Our goal is to be your number one vendor when it comes to service, support, delivery and quality HVAC products. We still have the last fourth of the year ahead of us...we appreciate it when you take time each day to promote and sell NesbittAire. - Art Kunz

August 1, 2003 - MORE THAN JUST A NAME CHANGE...

I want to take this opportunity to address concerns past and present, as well as significant opportunities that lay ahead.

Many of you have been with the Nesbitt unit ventilator line for many years, and have seen ownership changes, bankruptcies, and product changes that weakened the product line. In spite of all the past disappointments you have remained loyal to brand and the product. Others of you are new to NesbittAire and have come from less than ideal conditions with other vendors. It is safe to say ALL of you are where the brand is today, and what the outlook is for the future. I will try to address those concerns in this article: First, let me begin by saying thank you for your patience and cooperation over the past twelve months. It has not been an easy time for us, and we have not always been able to make it pleasant for you. Simply put we were a victim of our own success. Our investment in the unit ventilator line, and our higher than expected sales growth caused a severe cash shortage for our company. We recognized this as an issue and began looking for additional capital investment in early 2002. Due to economic conditions, and the stock market devaluation, this proved to be a very difficult task.

However we were successful in finding a new source of capital and new owners. In May of 2003 we did a prepackaged Chapter 11 filing with the US Bankruptcy Court, and emerged immediately as NesbittAire. The filing was necessary to clean up our balance sheet, and to give the company the best chance for success. The new owners are a management company for an investment fund. They have purchased 36 companies since 1990, and are well positioned to support us in experience, resources and capital.

What does that mean to the company, and to you as our reps? It means for the first time since purchasing the Nesbitt line from Mestek in 2000, we are sufficiently capitalized; have a good banking relationship, and a very strong balance sheet. We can now honestly say we are in the business for the long haul.

Many of you saw delayed shipments in 2003. I want to assure you that is not our normal way of doing business. Many of you that ordered from us in 2002 will remember we missed very few ship dates, and we are committed to shipping a quality, innovative product, on time at a fair price. Because we didn't close on our financing package until May 28, 2003 we were delayed in gearing up for the 2003 peak season. Let me assure you this will not be the case going forward.

With the history lesson over, let's talk about opportunities. NesbittAire has the absolute best unit ventilator product on the market. We went head to head in a sound test with AAF early in 2003 at an independent test lab, and won hands down. That test was the basis for cancellation of a $200,000 order already placed with AAF, and then awarded to NesbittAire. We can meet our airflow specifications while maintaining our sound levels below 50db. Many of you are aware that our competitors sometimes make sound levels by reducing airflow. We don*t have to do that.

In addition we have the lowest cost to maintain unit on the market. Our patented "unicoil" assembly and modular motor board assembly can be easily removed in the classroom. The "unicoil" feature allows for a true future cooling option, without surgical modifications to the unit ventilator chassis. NO ONE ELSE OFFERS THIS.

In addition we have a patent pending on our unique modular self-contained unit, and have added a heat pump. These units can be exchanged in the classroom in less than 10 minutes and repaired off site. Those systems with two modules are redundant, and in the case of a module failure, the second module can run independently and provide a level of heat and cooling to the classroom until the second unit is returned. NO ONE ELSE OFFERS THIS.

We have developed and will soon be re- releasing a revised version of our Windows based selection program that makes order entry easy and fast, and even provides you with submittal information. We have invested heavily in the product and support, and that will pay off for us now. We will hold training classes in the fall of this year to stress end user selling, and getting our unique features specified in the bid process. We are continuing to look for ways to broaden our product offering. We have completely redesigned our cabinets and shelving products to improve quality and appearance. We are planning to offer a vertical unit ventilator, with a heat recover option in late 2004. This will make us the only US manufacturer to build one, and will round out our education offering.

In summary, the worst is behind us. We have the products, we have the tools, and we have the innovation to add new products. We are stronger, and better equipped than at any time in our history. We also have the best rep organization in the industry. We are committed to providing you the levels of support you deserve, and with the changes we've outlined, the future is bright.

Again I appreciate your loyalty, and remain committed to providing the best product in the marketplace.

NOW it's time to make our presence known! -- Marty Harshberger - President/CEO

August 1, 2003 - CUTTING THE COST OF OWNERSHIP

NesbittAire understands the environment. We also understand that maintenance in the classroom is a different ballgame. That's why we developed and patented features that make our unit ventilator the lowest cost to own unit on the market. Most unit ventilators are not maintenance friendly. Replacement of a defective motor or coil can be time consuming. In the world of onsite maintenance time equals money.In a standard unit ventilator repair of a motor or coil must be completed when the classroom is empty, which usually means after hours or weekends. It means tearing the unit down repairing it on site. In the case of coil replacement or upgrade it can mean actual change to the chassis in our competitor's product.

NesbittAire understands school budgets are tight so we've addressed and solved those problems through incorporation of two patented features:

1. "Unicoil" - We have developed the only modular coil subassembly in the unit ventilator marketplace. In the unlikely event of a coil failure, the entire coil subassembly can be exchanged in a matter of minutes. It simply involves removing the input and return "sweat connections", taking out four securing screws, and sliding the coil out. The new coil is installed the same way.

Failure of a NesbittAire coil is an unlikely event however since we use a blow-through design. Our design keeps the coil away from the outside air stream and mixes warmer return air with the fresh air before hitting the coil.

Perhaps the best feature of the "unicoil" is that it provides a true future cooling option. If the school has a NesbittAire unit ventilator with heat only and wants to upgrade it to include cooling, the coil subassembly is the only thing that needs to be changed. If the new coil configurations adds sufficient static pressure to require a larger motor, that is taken care of by our modular motor board discussed next.

2. Modular Motor Board. - We have spent hundreds of hours of design and test time on our modular motor board. Replacement of a motor can be done in the classroom in less than ten minutes. It simply requires loosening four securing bolts and unplugging a single connector, the entire motor assembly slides out and can be replaced in minutes. The unit can then be taken to a repair shop for repair at the maintenance engineer's convenience.

Our motor board is also the quietest in the industry. In a "head to head" test with the advertised quietest supplier at an independent test lab, NesbittAire was awarded a large job on the East Coast based on sound data. That eliminates the argument that a unit ventilator must use a draw-through design and risk coil freeze-up to be quiet.

3. We also have a third patent pending on our modular self-contained condenser unit and heat pump. The entire chassis can be removed from the classroom by unplugging two connectors and sliding it out of the room cabinet to be repaired out of the classroom. In the larger units having dual modules, the unit can remain operable in a reduced capacity mode, supplying a level of classroom comfort until repaired the unit can be returned.

It has been said for many years that "John Nesbitt wrote the book on classroom comfort". In the continuation of his innovation, NesbittAire has addressed the nation's school budget issues by making a maintenance friendly unit ventilator that meets or exceeds airflow and sound specifications.

We are continuing a "tradition of innovation". - Marty Harshberger