Continental Materials Corporation

Continental Materials Corporation is a Delaware corporation, incorporated in 1954. There have been no significant changes in the Company’s line of business during the past five years other than the acquisition of all of the stock of McKinney Door and Hardware, Inc. (MDHI), a refabricator and distributor of metal doors and related hardware in Pueblo, Colorado on April 1, 2002 for $2,125,000, net of cash received. Accordingly, results for 2002 and on include the activity of MDHI since April 1, 2002. The Door segment of the Construction Products group consists of the activities of MDHI. The Company operates primarily within two industry groups, HVAC (Heating, Ventilation and Air Conditioning) and Construction Products. Prior to the 2005 fiscal year, the Company reported its financial results in two reportable segments, essentially along the lines of these two industry groups.