Letter to UK Customers

November 15, 2009

Dear Business Partner:

Because of our long standing relationship, I wanted to let you know about important steps that our ultimate parent company in the United States, Champion Enterprises, Inc., has taken to improve its capital structure.

Today Champion and its U.S.A. based subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company’s operations in the United Kingdom and Canada were not included in and will not be impacted by the filing. The Company expects that this restructuring will be accomplished through a court-supervised sale of its operations. For your information, a copy of Champion’s public announcement regarding its restructuring activities is enclosed.

It should be noted that Chapter 11 is a commonly used business tool in the U.S. that provides companies with “breathing room” so that they can work out their financial issues without the burden of near-term debt. Many well known companies, including GM, Chrysler and Remy International have successfully emerged from Chapter 11. Champion’s restructuring is for the purpose of fixing its balance sheet not its operations, as market conditions in the U.S. have caused its debt load to become overly burdensome. We expect our parent company to emerge from this restructuring as a stronger company, well positioned to continue its long-term track record of success both in the United States and abroad.

It is important to emphasise that Champion Enterprises, Inc. has not “gone bankrupt” (the Company has filed a Chapter 11 proceeding), nor is the Company going out of business. While Champion completes the restructuring, daily operations in every market it serves will continue as they always have. The restructuring will have no impact on the day-to-day operations of our business. It will be business as usual for us in the United Kingdom. All aspects of Caledonian will continue to operate as normal. We will continue to fulfill our commitment to customers and to serve their ongoing needs without delay or disruption.

If you have any questions please feel free to contact me, Paul Hudson or Lee Braithwaite. There is also additional information on Champion’s restructuring website, www.championrestructures.com.

On behalf of our entire management team, I’d like to thank you for your continued support.

Sincerely,

David Turnbull
Managing Director
Caledonian Building Systems Limited