From the desk of Dale Kane

Direct Line: (306) 347-2403

Dear customer,

First and foremost, please accept my apologies for difficulties you may have experienced in communicating with departments in our dealership and likely more specifically our service department. I know you are not looking for excuses and it is not my intent to make excuses. I will explain our current situation and our plans to resolve many of the communication and service issues.

To summarize what is described below, on April 19^th a new service writer has started with us, on May 3^rd our front end service employee returns to work having recovered from bypass surgery, our new phone system should be completely operational by the end of April, the extraordinary phone call volumes and recall servicing requirements should be mitigated by the end of May and our body shop and service department capacities should be doubled by the beginning of October and by the end of the year respectively.

Current Situation and Plans for the Future:

In early January one of our front end service employees had bypass surgery. It was not possible or feasible to provide a replacement for the 4 months he was expected to be away. At that time our remaining front end service staff stepped up to ensure that customer service was maintained. This individual, Rick, is expected to be back to work at the beginning of May.

In mid January one of our service writers made the decision, after 18 years, to pursue a different career course while he was still young enough to try something different. We immediately began the process to replace this individual. Again, the remaining front end service staff stepped up to ensure that customer service was maintained as best as possible until a replacement service writer was recruited. Our first replacement service writer didn’t work out but a second replacement service writer, Terry, has been with us since April 19^th.

Toyota accelerator pedal recalls were announced on January 22^nd. While the call volumes and customer response has lessened somewhat we still experience significant call traffic related to the recall issue. Because we take our customer concerns related to this safety issue very seriously we believe our customers should discuss this issue with our senior service employees. We made the decision to not use a call centre environment where our customers would talk to junior level service employees. While still significant, the call volumes are decreasing and we hope to have the recall services completed by the end of May.

Since early 2008 we have been working with our phone system provider to install and implement a new phone system. Phase one of a new phone system was installed in August 2009. We had hoped to install phase two by the end of the year 2009. Unfortunately ongoing problems with phase one delayed the implementation of phase two. Phase two of this new system is designed to receive, manage and distribute call volumes. Regrettably, as the problems are being resolved in phase one new problems have arisen in phase two and phase two implementation has been delayed. We hope to have phase two fully operational by the end of April.

Finally, in mid year 2008 we recognized that sales growth meant we were exceeding the capacities of our facility and our ability to properly meet the service needs of our customers. We immediately started the process to develop some land just a few buildings away from our dealership. We made the decision to construct a new building for our body shop allowing our service department to expand into what is currently our body shop at the dealership. These moves will double our capacity for both the service department and the body shop. Our body shop will be in the new building in early October and we hope to have our service department in the expanded space before the end of the year. We will be hiring additional service technicians and service writers at that time to meet the growing service needs of our customers.

I recognize that none of this does anything to address your service concerns TODAY. We have been proactive and have reacted as quickly as possible as situations developed. Our existing service employees have been working longer hours and extra days in the last 3 months and I’ve met with the management team weekly to discuss better ways to manage call volumes and service requests. Once again I apologize for the inconveniences that this has caused you and to offer some acknowledgement of the inconvenience, print this letter and present it at your next maintenance service to receive a $15 discount.**

Dale Kane C.M.A. C.A.

General Manager, Taylor Lexus Toyota

Chief Financial Officer, Taylor Automotive Group

**Receive $15 off any service work performed in our service department now until the end of business on June 30^th, 2010. Valid on Lexus and Toyota vehicles and on these vehicles sold and delivered in Canada.