February 3, 2005

This letter is intended to validate the cost effectiveness associated with engaging TCIE to conduct internal audits of our ISO 9001:2000 system. We utilized the services of TCIE for the calendar year of 2004. The total cost for the service was $7300. The state of NY covered $3600 through a grant and Manitoba covered the balance of the cost $3700. in consideration of the valued proposition two items were evaluated. The first item was the alternative cost of internally staffing and administering the program in its entirety. The second consideration is the quality and effectiveness of engaging TCIE. I estimate the extra staffing time to be 2 man day per month at a cost of $160/man day which annualizes to be $3840. I also estimate that the Management Representative would have to spend an additional 1 day per month in planning and reviewing the work completed by the internal auditor. This equates to an annualized expense of $4800. The quality and depth of audits is clearly improved by having TCIE as an outsource resource to conduct these audits. We do not at this point have the internal competence or experience to facilitate these audits. In summary, I feel strongly that in reviewing our decision to engage TCIE to conduct our internal audit program we made the right choice in bother financial terms as well as quality of service delivery.

Sincerely,

Brian K. Shine

MAINITOBA CORP.

P.O.BOX 385 · 122-130 CENTRAL AVE· LANCASTER, N.Y. 14086-0385 · (716) 685-7000 FAX (716) 685-7008

WEBSITE: WWW.MANITOBACORP.COM

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