Williams Industries Inc.

Chairman’s Report to the Shareholders

For the year ended December 31 st 2008

Despite all of this Northern Lumber was able to show a modest increase in sales of 8.3% but profit declined by 18% as margins were squeezed.

During September of 2008 NLC completed the purchase of the business Hothersal Trading Inc. (HTI) which is a small successful general hardware store with an excellent reputation. Williams Industries Inc. acquired the land and buildings that HTI will rent. Plans for a large expansion at the H&B Hardware complex at Warrens have been put on hold as well as plans for a large and improved store at Hothersal Trading as we wait on the economy to improve and make these capital intensive projects viable.

BIG GASES LTD. (BGL)

Sales for the year increased by only 2.6 % over 2007 but net income before tax rose by 10.4%.

The company continues to be largely reliant on The Queen Elizabeth Hospital (QEH) and the hospital has installed and is now running new equipment to produce their own Oxygen.

BGL was however successful in winning two large tenders for the supply of lubricants to the BAMC & the Sanitation Service Authority. These contracts will help to reduce the reliance on the QEH and should strengthen the position in 2009.

The high cost of shipping empty cylinders for refill is a continuing problem which makes it extremely difficult to compete with the locally produced gases.

Property rental in Barbados

The rental of warehouses and offices owned by Williams Industries Inc. at Warrens and Cane Garden in Barbados continued to provide a steady income up from $216,544 to $220,535 per month average in 2008. Our planned increase in rents was postponed in an effort to help our tenants to stay in business through the recession.

Poultry & Egg Suppliers Ltd. (PES)

I regret to report that Poultry and Egg Suppliers Ltd. fell right back to record negligible profit in 2008. My own view is that this business should be sold to the present staff or a major chicken farmer and we should focus our attention on our core businesses and rent the land and pens to the new owner.

Joint Ventures

Water desalination and sewage treatment

Ionics Freshwater Ltd. continued to perform well during 2008. Sales increased by 5% and pretax profit decreased by a marginal 2.9%.

The plant and our team continue to operate almost flawlessly and the relationship with our customer BWA remains strong. There was no change in the relationship between IFL and GE in 2008. GE continues to disappoint us as far as