Williams Industries Inc.

Chairman’s Report to the Shareholders

For the year ended December 31 st 2008

BRC West Indies Ltd (BRC)

Throughput tonnage fell by 4.3% as a result of the cancellation or slowing down of several major projects in the third quarter of 2008 but the dollar value of sales increased by 20.7% because steel prices rose dramatically during the first three quarters. During the third quarter steel prices fell as dramatically as they rose but BRC continued to receive raw material that was contracted for when supply was scarce and prices were rising rapidly. As a result a decision was taken to write down the value of inventory at year end by 2,921,629 so as to enter 2009 with competitively priced inventory. This resulted in a fall in profit of 16% compared to 2007. Export sales also decreased by 17%.

BRC started production of spiral bent rebar for columns in 2008 using new equipment purchased for this. It also improved its productivity of special folded sheet metal products by installing a new CNC controlled 26 ft folder. In addition the mesh welding machine was retrofitted with new electronic controls to improve its efficiency. BRC also started to make inroads into the hurricane shutter market in 2008 with its “Permashield” shutters.

BRC 2009 forecast

While all recognize there will be a general slowdown in business due to the fall out of the recession, the full extent of the slowdown is difficult to predict. The general intention of BRC is to address, and complete some in house projects to best utilize the situation, and to prepare for the upswing in business when it comes. To this end a new three line, rebar straightening and cutting machine, complete with a bundling system is on order to expand the range and increase production capacity and improve rebar production efficiency.

Steel prices are expected to remain stable or increase slowly in 2009 as lower demand counters the efforts of mills to reduce capacity to push prices up. BRC will explore every possibility worldwide to reduce the cost of raw material and remain the most cost effective source of reinforcing and metal roofing products in Barbados.