TO: LYNX Services Participants

January 31, 2005

RE: NAGS Rebalancing

In November 2004, National Auto Glass Specifications (NAGS) announced that it was moving forward with a rebalancing of the winter U.S. benchmark price list. The effective date that change is now scheduled to occur is February 28, 2005. On that date, the NAGS benchmark list prices will be significantly reduced. One of NAGS's stated objective of the rebalancing is to change the "current industry practice of incorporating the vast majority of compensation in the glass part with nominal consideration for labor."

LYNX Services is concerned that this even twill cause uncertainty and business disruption throughout the industry. To that extent, LYNX and PPG Industries sent a letter to NAGS to encourage them to reconsider implementing this new methodology. To-date, we have not received a response and must assume that NAGS is moving forward with the initiative. Therefore, we are committed to doing everything possible to assist glass service providers in managing the change. This will include ongoing communications and the creation of a LYNX Services "help desk" to address glass service provider questions.

LYNX Services has two primary objectives in its response to the NAGS initiative: 1. Facilitate, to the best of our ability, a smooth transition for industry trading partners; and 2. To the greatest extent possible, minimize business process and financial variances for retail service providers and insurance clients.

In the interest of continuing to conduct business with the glass service providers on terms that are consistent, LYNX Services is re-structuring its standard pricing agreements. Key elements of this new pricing structure will include: 1. Payment of an hourly service fee pursuant to the standard installation hours published by NAGS; 2. Maintaining a flat dollar amount for Adhesive "kits" for each installation, where applicable; and Adjustments will be made to the program glass discounts by territory in an attempt to maintain the same average invoice dollars for work assigned by LYNX Services under the new pricing structure compared to the old.

The following table provides an example of this new structure:

Example Pricing Territory A Territory B Territory Territory C D Current Program Glass Program 62% off 62% off 50% off 42% off Discounts Kit $20 Flat $20 flat $20 flat $20 flat Labor $40 flat $40 flat $40 flat $40 flat Program as of 2/28/05 Glass Program 3% off 3% off 34% above 59% above Discounts Kit $20 flat $20 flat $20 flat $20 flat Labor/Service Fee $35/hour $35/hour $35/hour $35/hour ($/NAGS Hour)

Please note, program glass discounts will vary by insurance company. As you can see, this will create both percentage discounts taken "off" of NAGS list and "list-plus" (percentages added to) or "above" NAGS list scenarios.

This methodology will apply to insurance companies that utilize the LYNX Services network of glass service providers. State Farm and Allstate will be issuing separate communications regarding adjustments to be made to the pricing structure of their Offer and Acceptance programs.

To help clarify how the new pricing will apply to individual jobs, the following are examples illustrating both the current pricing structure and the new. Please note that the new pricing will be implemented based upon the specific insurance client claims mix, across ALL glass claim history, in an attempt to maintain average net payments to glass service providers that will be the same before and after the NAGS rebalancing. Given the random variability of the changes made by NAGS, there are certain to be individual jobs where the payment after the rebalance is either greater or less than it was before the rebalance.

Example #1 Current Post Rebalance NAGS List Price Invoic NAGS Price NAGS Hrs. Invoice e List Glass Part $536.15 62% $203.7 $181.90 3% Off $176.4 DW01168 Off 4 4 Kit $20 $20.00 $20 $20.00 Flat Flat Labor $40 $40.00 $35/Hr 2.2 $77.00 Flat . Total $263. $273. Invoice 74 44

Example #2 Current Post Rebalance NAGS List Price Invoic NAGS Price NAGS Hrs. Invoice e List Glass Part $693.90 50% $346.9 $209.70 34% $281.0 DW01256 Off 5 Above 0 Kit $20 $20.00 $20 $20.00 Flat Flat Labor $40 $40.00 $35/Hr 2.8 $98.00 Flat . Total $406. $399. Invoice 95 00

As in prior pricing changes, glass service providers will be notified of actual client pricing on work assignments received on or after February 28, 2005. To assist glass service providers in preparing for the rebalancing, LYNX Services will be posting revised pricing for all insurance companies whose glass program is administered by LYNX Services. This can be accessed in the Installer Resources section of www.lynxservices.com. Beginning February 1, 2005, this information will be posted on-line when it becomes available from insurance clients.

Note: Only registered user IDs with the Owner/Officer level of security have permission to view this new client pricing feature. Glass Service Providers can obtain a user ID by completing the registration process on-line.

The following key items will smooth the transition for glass service providers: 1. To ensure prompt payment, glass service providers must utilize the published NAGS hours when invoice LYNX Services. Invoices will be audited upon the published hours and the insurance client hourly service rate. 2. Retailers will follow the existing "Non-NAGS Part" Pre-Authorization process in the event labor hours and/or the part's list price is not published by NAGS. 3. Invoices for job assignments received from LYNX Services through February 27, 2005 will be audited and paid according to the current (pre-February 28) pricing methodology. Retailers should invoice according to conventional methods for jobs dispatched prior to February 28, even if the work is preformed on or after February 28. 4. According to NAGS, the published hours account for "vehicle preparation, normal clean-up associated with the operation, verification of completed operation, technician's personal needs, preventative measures and any other service that would normally accompany an individual operation" including certain jobs that may require two people to remove and/or place certain glass parts. 5. Many service providers utilize Customized Offers(R) technology to enhance their participation in certain insurance company programs. Customized Offers will continue to function as they have in the past under the new rebalanced NAGS structure. Participants will receive separate communication regarding the transition. 6. Questions regarding work order creation, pricing profiles and/or EDI invoice generation should be directed to your "Point of Sale" software provider.

Additional information, such as Frequently Asked Questions, will be available at www.lynxservices.com.

LYNX Services values your participation and continued support as we navigate this complex, industry-wide change. LYNX Services intent is to enable participants to transition effectively into the new Rebalanced NAGS pricing methodology. Questions regarding the rebalancing and the transition can be directed to the following:

Glass Service Provider Contact Information:

E-Mail: Participantmanagement@lynxservices .com On-Line "Contact Us" Form, Direct www.lynswervices.com your question to Participant Services: Telephone Help Desk for NAGS 800-774-0422. Rebalancing Questions Only: