Cascade Engineering Announces Achievements in Key Financial, Social and Environmental Areas

New Report Outlines Progress in Company’s Sustainable Business Strategy

GRAND RAPIDS, Michigan, June 21, 2005 – Cascade Engineering, a leader in engineered plastics systems for the automotive, solid waste and industrial markets, today announced significant achievements in three key areas of measurement – financial, social and environmental – that the company uses to chart its progress toward becoming a sustainable business. The company outlined its recent accomplishments and activities in its newly issued 2004 Triple Bottom Line Report, available at www.cascadeng.com/about/profile/env.htm.

Sustainable enterprises are those which do business in a way that is conscious of resources and communities, and how shared support systems can create success for companies, society and individuals alike. Cascade is at the forefront of a growing number of U.S. businesses that has recognized the important, complementary relationships between their financial, social and environmental “bottom lines”. Cascade’s objectives in issuing its 2004 Triple Bottom Line Report include: creating a higher level of organizational accountability and transparency within Cascade; fostering a balanced approach to continuous improvement; and providing a learning tool for other medium-sized companies.

“Our latest sustainability scorecard illustrates Cascade’s strong commitment to transforming what many people view as a ‘good idea’ into long-term strategic advantage,” said Fred Keller, Cascade Engineering Chairman and CEO. “In measuring our many areas of progress -- and some remaining performance gaps – Cascade is inviting its many stakeholders and industry peers to take a close look at our multi-year effort to realize the potential of three vital and interrelated ‘bottom lines’. We believe that social and environmental initiatives can contribute to positive business results, and that sustainability will continue to gain momentum through the open exchange of ideas and best practices.”

The company’s 2004 Triple Bottom Line Report highlights a number of Cascade’s recent objectives and accomplishments. The Report’s major areas of focus include:

Financial Capital

Although Cascade is not required to report its financial results, the company released four key financial targets in 2004 to help illustrate that its sustainable business practices are closely linked to its financial performance:

• Sales Growth. Cascade has set and continues to achieve a year-over-year growth target of 10 percent or more. 2004 growth was 14.3 percent.

• Profitability. Cascade continues to make decisions with proper regard to long-term financial security and profitability. The company’s Grand Rapids campus has recorded positive net income in 30 of the last 31 years and in each of the past three years.

• Return on Equity. Cascade believes that stakeholder return on equity (ROE) is an important measure of the company’s success. The company’s long-term target is a 15 percent return; 2004 ROE was nearly 11 percent.

• Capital Utilization. To be financially sustainable, Cascade recognizes that it must fully utilize equipment, employee skills and develop new solutions for customers. In 2004, the efficiency of Cascade’s equipment and human capital, as measured by utilization rates, improved significantly.

Social Capital

Social capital is created when companies and communities engage each other to find shared solutions to common problems, and Cascade believes that its efforts to help build strong communities – with employees who feel fulfilled and secure – will have a powerful, long-term impact on the company’s growth. In 2004, the company continued to organize its social capital programs around three categories:

• Charitable Giving. As a company, Cascade donated $215,000 to 82 different organizations. Recipients included United Way of West Michigan, which Cascade supported through a generous contributions program that fully matched employee support, a holiday food and gift baskets program, and donating employee time to help provide environmental enhancements for a local children’s center and area families.

• Community Investment. Cascade has helped unemployed and underemployed individuals move from dependence to economic self-sufficiency through its Welfare-to-Career program, which provides education, mentoring, resource guidance and transportation for program participants. In 2004, 97 former welfare recipients were involved in the program, including 30 who achieved self-sufficiency. The company’s approach to community investment has attracted the attention of institutions such as The Conference Board and Stanford University, and as an illustration of its commitment to promoting self-sufficiency, Cascade is the only company in Michigan that maintains one full-time and one part-time program caseworker on site. In addition to providing important benefits such as reduced cash assistance payments and increased tax receipts, Cascade achieved a 97.8 percent monthly retention rate for participating employees, up from 83 percent in 1999.
  
  In addition, through the new Cascade Engineering University (CEU), which offers classes and consulting services, the company began sharing its community investment experience with businesses, faith-based organizations, schools and social service agencies, and clients in two Canadian provinces. Working with local public schools, Cascade also participates in the School-to-Career Progressions Program, which helps at-risk students develop skills for overcoming the barriers of poverty. In 2004, of the 30 at-risk high school seniors participating in the program, 96 percent enrolled in a post-secondary-education program and 11 percent obtained part-time employment.

• Commercial Initiatives in the Community. Cascade’s community involvement also includes participation in an innovative training and certification program for ex-offenders and a skills development initiative for individuals living in poverty, not just those receiving welfare.

• Major Awards. In addition, Cascade has been honored to receive awards and recognition from many different organizations during 2004, including local business clubs, engineering and occupational safety organizations, the National Governors Association and U.S. Department of Commerce.

Environmental Capital

Cascade is committed to protecting the environment by continually reducing waste emissions to the air, land and water; evaluating its environmental management processes to ensure continual improvements; and understanding every phase of its product life cycles. In 2004, highlights of the company’s environmental focus included:

• Waste reduction and recycling. Cascade made significant progress toward obtaining ISO-14001 certification for its entire Grand Rapids campus, which the company expects will occur in late 2005. In addition, Cascade’s Industrial Solutions Group joined the Automotive Solutions Group in achieving Clean Corporate Citizen (C3) status from the Michigan Department of Environmental Quality (DEQ). This designation grants the company accelerated review by DEQ of permit requests, a potentially important competitive advantage.
  
  Further, because Cascade’s core business is plastic injection molding, its primary goal is to reduce the consumption of resin, recycle plastic waste and minimize the material sent to landfill. In 2004, Cascade surpassed its 15 percent waste-to-landfill goal with a 38 percent reduction for the Grand Rapids campus. The company also accelerated its research and development activities relating to alternative sources of resin.
  
  In addition, Cascade undertook a major expansion of its recycling program, with all seven of the company’s plants removing absorbents from their waste stream and reusing them in the manufacturing process. In 2004, 77 percent of the more than nine million pounds of polypropylene used by Cascade were based on post-consumer and industrial recycled material. The company has also created an environmentally friendly profit center from its waste stream of plastic scrap, diverting more than two million pounds from the landfill and receiving more than $117,000 from its scrap processing vendor, while re-introducing nearly 400,000 pounds of scrap material into the manufacturing process.

• Health and Safety. Cascade’s environmental focus includes maintaining a safe and secure work environment for its employees. In 2004, the incident and lost/restricted workday rates for Cascade were 5.7 and 2.5 respectively, representing a 25 and 40 percent reduction from year-end 2003 rates. To ensure that its safety commitment extends to the company’s contractors, Cascade qualifies contractors on the basis of safety and requires them to participate in a training program. In 2004, 80 contractors completed this program. Cascade also provides specialized employee wellness programs to its facilities in Grand Rapids, improving safety through biomechanical and ergonomic assessments, and individualized exercises.

Cascade’s 2004 Triple Bottom Line Report encompasses activities and accomplishments for the company’s Grand Rapids, Michigan campus. The campus consists of three solutions groups, seven plants and four other facilities, including an engineering establishment called the Center for Innovation and Cascade’s corporate headquarters, called The Learning Community. Financial data was audited by BDO Seidman in Grand Rapids, and comprises the Cascade Family of Companies, which includes Cascade Engineering, two joint ventures in Michigan, one joint venture in Ohio and two wholly owned subsidiaries in Florida and Hungary. For more information about Cascade Engineering, the 2004 Triple Bottom Line Report and the topic of sustainability, visit www.cascadeng.com.
 

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