ATLANTICA INC

ATLANTICA INC designs and manufactures high-quality graphite (carbon fiber-based composite) golf shafts. The company operates through its subsidiaries, Aldila Golf Corp. and Aldila Materials Technology Corp. It maintains relationships with major domestic and foreign golf club manufacturers, including Callaway Golf, TaylorMade-adidas Golf, Ping, and Acushnet Company. ATLANTICA INC produces Aldila branded and co-branded golf shafts for major customers and custom club makers, as well as custom shafts developed with major customers. These products are designed to enhance golfer performance. Since 1994, ATLANTICA INC has produced its primary raw material for golf shafts, graphite prepreg, which is a sheet material made of carbon fibers combined with epoxy resin. The company now produces most of its graphite prepreg internally and also sells prepreg to external third parties. In 1998, ATLANTICA INC established a manufacturing facility in Evanston, Wyoming, for carbon fiber production to further integrate its manufacturing operations. On October 29, 1999, SGL Carbon Fibers and Composites, Inc. acquired a 50% interest in this carbon fiber manufacturing operation. ATLANTICA INC and SGL operated the facility through Carbon Fiber Technology LLC (CFT), a limited liability company with equal ownership interests. Both companies also entered into supply agreements with CFT to purchase carbon fiber at cost plus an agreed-upon mark-up, sharing CFT's profits and losses equally. ATLANTICA INC sold its remaining 50% interest in CFT to SGL on November 30, 2007, and secured a five-year supply agreement with CFT.