Williams Industries Inc.

Chairman’s Report to the Shareholders

For the year ended December 31 st 2008

Coles Engineering Ltd (CEL)

2008 started reasonably well with sales and profit on a par with the previous year. However, with steel prices increasing at an unprecedented rate between the second and third quarter, major jobs that were quoted before these increases had to be done with very little margin. As steel prices fell in the fourth quarter, profitability recovered. The year ended with sales 7.6% ahead of 2007.

During 2008, Coles Engineering Limited met and in some cases exceeded the requirements of ABS and Lloyd’s Register for work done on cruise ships and the company is now noted at Lloyd’s Register as a recommended fabrication company for marine work.

Coles 2009 forecast

2009 is expected to be a very tough year for business but traditionally when the economy of Barbados slows, people tend to repair rather than replace equipment. This will generate work for CEL so the company is expected to maintain some profitability in 2009.

Caribbean Metals Ltd. (CML)

The year 2008 was a very challenging one for CML as the world experienced rapid increases in oil prices which drove up steel prices. This had adverse effects for Caribbean Metals as the company was not able to increase prices to the local consumers at the same rate that raw material prices increased to CML. In spite of this, CML increased sales by 16.6% in 2008 due mainly to the sharp increases in steel prices but margins were squeezed by severe competition

resulting in a decrease in profit of 42.8% compared to 2007. The very sharp reduction in profit was also partially due to a million dollar increase in overhead expenses and finance charges due to the cost of our investments in Tourism related projects and land development businesses.

Most major construction projects expected during the year were either stopped completely or never commenced, namely Le Sport extension, Le Paradis, Raffles Resorts, Jack Nichlaus Golf Course, Ritz Carlton and Government’s Low to Middle Income housing project. Homeowner construction also declined as the homeowners were not able to get financing due to the increased cost of construction.