HISTORY of LHP

Lansing Housing Products was purchased by Brian Houlihan (85%) and David Monserud (15%) in April 2003. At the time of the purchase Brian was a Vice President at Kerndt Brothers Savings Bank, serving as a loan officer. He was also managing his successful farming operation which he was involved with since 1979. He is a graduate of Iowa State University with a Degree in Ag Economics and a minor in Public Policy. Dave had been working for the past 13 years for the previous owners of this company and was serving as production manager. Prior to that he worked in the insurance industry.

The original owners of this manufacturing concern moved their business to Lansing, Iowa in the 1980's and it has operated here since then. The focus of the previous owners has been the manufacturer of high quality steel storm doors, screen doors, security screens and steel storm windows. These remain the primary products of the company today. These quality products are sold to public housing authorities, Indian housing authorities, government projects, commercial concerns and residential markets. The new owners purchased the company with the intent of relocating the business to a better site in the community. The former location was located in a flood plain and the property was in need of major repair. The relocation to a much better facility took place in July and August, 2003 and required production to be shut down during that time.

LHP OPERATING CULTURE

LHP is driven to be a progressive and growth orientated company that is a stable long term organization. We place a high value on our employees and constantly seek their input on operational improvements. We will conduct ourselves ethically and strive to be a good neighbor in the community. We will continue to utilize the expertise and resources provided by our in house consultant, NICC, CIRUS, and other governmental and private sources of knowledge and training for ongoing improvements.


EXECUTIVE SUMMARY

Management Team

LHP's Board of Directors is made up of four members, the owners, Brian and Dave, Brian's brother Tom Houlihan, and Glen Springer. Tom is a Vice President with the nation's largest Architectural firm, Ginsler and Associates. Glen served as President of the $120 million multi-national Viking Pump Company, a division of IDEX Corporation, prior to his recent retirement to Lansing, Iowa.

Brian is serving as President and Dave is Sec/Tres of this sub chapter S Corporation. Glen, Chief Operations Officer for LHP, brings over 40 years of manufacturing experience at all levels of production and management. Tom has been consulting the company on technical matters and is assisting in discovering new market contacts. The board is committed to expanding markets for our products, gathering competitive intelligence and using innovative approaches to increase profits.

Operations

During the past few months LHP management has taken advantage of a government 260E agreement grant to train LEAN Manufacturing principals to all the full time employees. This manufacturing approach increases production efficiencies by maximizing labor usage and streamlining the assembly process. The company has taken the steps necessary to reorganize the production line to fully implement LEAN Manufacturing in the spring of 2004.

In March of 2004 the company had professional onsite training to improve each production area's organization and station cleanliness. This also will contribute to a more efficient work environment and less mechanical break downs and costly repairs.

At the same time LHP has hired a production manager with 10 years experience in manufacturing and has supervised 18 employees under LEAN Manufacturing principals. This has allowed Dave to become Director of Sales in pursuit of increasing our market share.

OUR FUTURE

LHP has added a full line of high quality vinyl windows manufactured by Custom View Windows located in Rapid City, South Dakota. This product is complimentary to the level of quality we demand from our own products and is a good fit for the markets we are currently selling into. It also will be marketed with our security screen attached to appeal to the housing authority market. We will continue to build superior quality storm doors, screen doors and storm windows and have developed a marketing strategy to increase our sales. We believe building solid relationships with sales representatives, dealers, customers and vendors will lead us to the success we strive for. We will continue to pursue the improvement of our manufacturing processes and the reduction of product cost. The company will also research re-engineering our products to become more competitive in our markets.

Financing Sources as of 2/27/04

LOC- Farmers and Merchants Savings $130,000

Loan from Owner (Brian Houlihan) $60,172

Credit Cards $14,040

Upper Explorerland (Term Loan) $93,218

Allamakee Revolving Loan (Term Loan) $36,907

The cost associated with relocating the business to its new location and addressing management and manufacturing deficiencies that were passed along from previous ownership has inspired ownership to consider seeking a new investor who is willing to invest in the business which will then provide adequate working capital. The principal owner has the ability to provide an additional infusion of capital; however, the long term stability of the company would be best served by adding a financially strong third owner.

The painstaking and expensive steps to improve the operating process and discovering new market outlets are well underway. Management has taken determined action to make this a long term profitable concern.

Proposed Stock Offer:

Company to issue 650 shares (20%) for $10,000

Purchaser will be required to provide $100,000 term loan at conventional bank rates, currently 6 to 8%, to LHP to refinance F&M Savings Bank note. We propose a five year loan fully amortized with monthly payments and no prepayment penalty. This will free up $100,000 for operating use.

Note to be secured by UCC filing behind current creditors with the exception of the principal owner. This note will have a priority lien to the loans the principal owner has/ will make to the company.