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As many of you have read in the recent Qmmunications, Flashes and Press Release, this year we unveiled a new brand

identity for our QEP-branded products. This new brand identity is the first time the brand logo has been modified since

its inception in 1979. As all great brands undergo transformation throughout their lifetime, it is now time to give a

facelift to one of our most treasured assets. After careful research and many months of work attached to it, a decision

was made to retain the legacy of QEP by keeping the yellow and blue that has become synonymous with the QEP brand.

We have modified the diamond shape and brought the overall look into the current time frame while enhancing the

readability of our brand, QEP.

Part of the logo transition included a new look and feel for the QEP-branded products and the packaging they get

wrapped up in. Clean designs, strong colors and simplifying the packaging to make it prominent at the retail level were

all goals for this project. Smaller packaging cards and no plastic allows the customer to touch and feel prior to

purchasing as well as offers a more environmentally friendly method of packaging.

In the course of this we recognize that comfort is much more than a soft handle; it’s one of the greatest aspects of a

design’s effectiveness. Comfort plays right into efficiency, reducing the time and effort needed to perform at the same

level. Therefore, we have made improvements to select products focusing mainly on the ergonomics of the handles.

Many of our newest products launched this year have already been packaged with this

new look and will begin to be seen in the marketplace as early as this month. We will be

going through a phase-out stage of old packaging to the new look, so you will see a mix

of old and new QEP in stores for a period of time.

With this QEP brand launch, we have also introduced the QEP Tile Tool Display. It’s a

four-sided walk-around merchandising display intended to give customers the ability to

offer the maximum amount of tools in the smallest amount of space, all while promoting

the QEP brand! We are now offering a promotion to our customers for a FREE QEP Tile

Tool Display PLUS 15% discount on a QEP product opening order of $2,000 or more!

This QEP Tile Tool Display will be available the week of July 1, 2013.

In the Field...1-3 CEO’s Message…4 The Q-munity…5-8 President’s Message…9 In the Field…10-16 Social Media….12 In the Spotlight…17

QEP Unveils New Brand Identity

The QEP Tile Tool Display shown here provides one location for customers to shop

items that they may not have normally been considering. It allows for a simplified

shopping experience to make buying easy; customers can walk in and know exactly

where to go for the products they need.

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In the Field

History Repeating Itself

Left to right: Lottie Phillips- Product Marketing

Assistant, Kate Holdsworth- Design and Marketing

Assistant, Becky Firth- Marketing Manager, Paul

Boyce- CEO European Operations, Mark Heynes-

Design Engineer, Sarah Findon- National Account

Manager and Ann Quirke- Sales Director.

Q.E.P. Co., Inc. is now 3 months into the acquisition of Homelux, and

the business has slotted into the QEP family like a long lost cousin

which is quite an apt analogy, given the historic relationship between

Homelux and QEP. The partnership did not begin in 2013 though…it

actually started in 1985, when a young man named Lewis Gould,

along with the Export Manager, Ann Quirke (now Homelux Sales

Director) set up QEP as the exclusive agent for the Homelux

Distribution in the USA.

Now we catapult 28 years later, and that partnership is crystallized

with QEP acquiring Homelux back in March of 2013. As well as the

Homelux brand, the acquisition welcomes another brand division and

brand to the QEP umbrella, Tile Rite. Homelux predominantly

services the DIY market and big box retailers, and Tile Rite, whose

distribution is 100% to the independent channel, targets the

professional market. Tile Rite has been established for 20 years with

its original philosophy still intact of creating high quality products at

competitive prices, coupled with reliable service and full availability.

Their product categories include tiling tools, tile trims and underlayment, now boasting a range of over 350 products and a

customer portfolio of over 1500 outlets.

The 1st quarter integration has gone well, and the Homelux/Tile Rite team is so excited to now become part of the QEP

group.

Paul Boyce, CEO-European Operations said, “We are delighted that this acquisition brings with it a very experienced team in

sales and marketing whose skills, combined with our current QEP UK team, provides QEP with an excellent opportunity to

grow the expertise within our business.

We now have 23 Homelux employees across all functions and Tile Rite have 15 employees, with both divisions currently in

the process of recruiting new talent across all functions to help us expand even further. The Homelux, QEP UK and Tile Rite

sales, marketing and purchasing teams have already been working closely together on key account projects, and cross-

divisional product category initiatives. We are using the contacts and expertise, and leveraging them to pitch for new

business.

The opportunities that the acquisition creates are very exciting. It has given a platform for QEP to become the brand leader

in the tile and flooring accessories market place in the UK, and has helped to strengthen our market positioning in Europe,

as well as worldwide.”

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In the Field

Paul Boyce continues, “Homelux and Tile Rite are a strategic fit with

our current global brand portfolio, with synergy between the

businesses on so many levels. Not only do the product categories

complement each other, but any range gaps that were previously

identified in each business, prior to the Homelux acquisition, have

now been joined up, enabling QEP to offer a more attractive

product proposition to our world-wide customers.

With cross-divisional product category collaborations within the UK

already, our strategy is to present a full category united front,

selling and marketing QEP to our global customers as a ‘one-stop

shop’ solution. We are imminently presenting this program to

potential new customers in Holland, South Africa and Australia.

Watch this space….!”

Meet the Homelux team, pictured from left to right: Jayne Williamson- Finance

Manager, Pat Allcock- Finance Support Assistant, Hayley Dawson (top) – Sales

Administrator, Andrea Wilkins- Credit Controller, Don Powell- Finance Director.

Meet the Tile Rite Team

Meet the Tile Rite team, pictured from left to right: Craig Dubleton- Warehouse

and Packing, David Montgomery- General Manager, Pete Neal- Warehouse

Manager, Marion Yarsley- Internal Sales and Laura Harbidge- Design and

Marketing.

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From the desk of Lewis Gould

Dear Fellow Associates:

At this time of year we all look forward to leaving the winter doldrums and joining the warm summer weather, which always

signals a “change.” The same happens in business. We find different times of the year create different business conditions.

One of the humorous things is that our summer in the United States is the winter in Australia and vice versa, so their business

conditions turn out different than ours. Most of Europe uses summer time to go on vacation. For those of us who live in

Florida, we are inundated with visitors from Europe in the summer. One of the most striking things is that our company is

truly global and international at the same time. In fact, when I mention Australia, Europe, and Canada they represent 40% of

our total sales outside of the U.S. Although they operate in different countries, they are truly “Q.E.P. people” who also sell

into similar markets but under different names throughout the world.

Recently the company made an acquisition in England, a company called Homelux. We certainly want to welcome those new

folks to the Q.E.P. family and learn more about what we do in the U.S.

The company shortly will be starting a new initiative to familiarize everyone throughout the world with what we do. We do

so many things in so many different places that for you, my fellow associates; it may be difficult to understand why we do

things and who the people are, as part of the “outside” Q.E.P. family. We are working on programs and will ask you

questions shortly to help us fine tune the information. In advance, we appreciate all the help you can give us.

Lastly, I want to speak to each of you about our medical plans. As you know, in the U.S. the government has made many

changes in medical plans. In fact, the government is writing tens of thousands of regulations now and several thousand

regulations are already out. It is quite confusing but it points to one thing: if we are going to insure those people who do not

have medical coverage, everyone else will pay a higher premium. It affects all of us at Q.E.P. We have tried everything to

contain cost increases and expand coverage that is mandated but at the end of the day we are a small company in a very

large world. You will see programs shortly that are, unfortunately, more expensive but necessary. We are going out of our

way to make sure our “family” in the U.S. has the best we can do at this point in our corporate life. I expect that within the

next 30 days we will start gathering the information and giving everyone copies of what the new plan will be on August 1st.

I started the company over 35 years ago and, in fact, August will be our 36th year in business. During that time we have

expanded from one person (me), without health insurance, to almost 900 people worldwide who are part of our family.

Frankly there have been challenging years as I look back but I wouldn’t change them for anything.

Keep well and enjoy the summer.

Kindest regards,

Lewis Gould

Lewis Gould

Chairman of the Board and Chief Executive Officer

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The Q-munity

On April 15th, 2013 the employees at our Clinton,

Massachusetts location joined in with the rest of

the world as news unfolded about the Boston

Marathon bombing. Many of us in Clinton were

personally affected, knowing someone that was

there to either run in the event or there to

support a runner. We are all extremely thankful

that we can say none of our friends and loved

ones were physically hurt and that they did get

home safely. Our hearts do go out to all that were

affected. We are so proud of all involved that

helped to save lives, and those who brought

justice to this horrific act.

WE ARE BOSTON STRONG

In Smaller Cities, Stick to Fried Rice

Terry Hirschman featured in The Wall Street Journal Asia

Our very own Terry Hirschman, QEP’s VP of Global Sourcing in

Shanghai, was featured in The Wall Street Journal Asia. Mina Choi,

from The Wall Street Journal Asia, interviewed Terry about the in’s and

outs of traveling in China for the article release in the May 13, 2013

edition. Mina asked Terry very important questions like what’s in your

carry-on? “Evian face spray, lip gloss, heavy-duty moisturizing cream

for face and body, a neck pillow and a little snack. I must also have my

iPad” Terry said. When asked for tips for travelers coming to China,

Terry replied “Be careful with food. When you’re traveling in second-

and third-tier cities, understand that the local hotel staff or canteen will

not be able to deliver your food choices. Stick with fried rice, pan-fried

beef and kung-pao chicken. For full interview click here:

http://ow.ly/lvCWm

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The Q-munity

Ashbourne Breast Cancer Walk

Congratulations to our Recent Graduates

Congratulations Kerron Jaggernauth on receiving his

Associate in Science from Broward Community College!

On May 18th, 2013, colleagues from Homelux

participated in the annual Ashbourne Breast Cancer

Walk along with hundreds of others. The walk is

around local landmarks over an 8.5 mile stretch where

participants (female AND male) are wearing only a

decorated bra in support of breast cancer.

The Homelux team raised over £150, where QEP then

matched this donation to make a total £300 that went

directly to the local hospitals breast cancer unit. This

money is used to buy equipment used in

reconstructive surgery. This year the total event

raised over £15,000!

Homelux team pictured 3rd from left: Louise Ford, Sales Administrator,

3rd from right: Sharon Green, Samples Coordinator, next to Louise

Holmes, Planning Manager with friends and family. Great job team!

Congratulations to Jenna McBride and

Kaylee Guilford on their senior graduation

from Victor Valley High School and Krysta

McBride on her senior graduation from

Oak Hills High School! These three girls are

Caryn McBride Guildford’s, Buyer/Planner

in Adelanto, CA, daughters.

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This year, Christina (10) and Andrew (9) Del Pozo, (Leslie Del Pozo - Brand

Marketing Manager, Boca Raton) helped start their school’s first ever Lego

Robotics Team. They competed as part of the FIRST LEGO League (FLL),

which is an international organization and competition for kids ages 8-14.

The program is designed to get children excited about science and

technology - and teach them valuable employment and life skills by

helping them explore innovative solutions to problems while building

useful teamwork skills.

Using a LEGO® MINDSTORMS® robot set, the students build and program

their robot to complete automated tasks and score points around a game

board. The Ramblewood Elementary team, named the Robotic Wolves,

went to their first competition this past January. The kids and their robot,

affectionately named “Bob”, performed well, scoring in the top 10 at the

Razzma Taz Bot FLL Tournament in Boynton Beach, FL. The tournament

included 4 different categories: the Robot “Game”, Special Project

Presentation, Research/Robot Development and Core Values/Teamwork.

At the end of the day, they did not score high enough to qualify for the

regional tournament; however they were awarded the “Rising Star”

trophy for their excellent first competition achievements. As the

tournament coordinator presented the kids with their trophy, she told

them “We are expecting many great things from the Robotic Wolves in the years to come!”

Thanks to QEP for helping to sponsor and support the Robotic Wolves.

Being part of this team has been an extremely rewarding experience for all

the children involved.

The Q-munity

Congratulations Richard!

QEP Rising Stars

The Robotic Wolves QEP Sponsored T-Shirts

Pictured to the left is the Robotic Wolves

team photo: Christina Del Pozo: back row,

center and Andrew Del Pozo: front row,

center holding the trophy.

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The Q-munity

Congratulations to Nathan Smith, shipping lead in Adelanto, CA and his

wife Monica on their first baby girl! Bringing in a beautiful bundle of joy

to celebrate St. Patrick’s Day, Olivia Senaida Smith was born March 17th,

2013 at 11:30am weighing 8lbs 1oz. From everyone at QEP Worldwide,

best wishes on your new healthy baby girl!

Newest Additions to the QEP Family

From left to right is, Nathan Gorey, Account Engineer;

Danny Persinger, Environmental, Health & Safety Manager,

Q.E.P. Company; Rick Burchfield, Vice President of

Manufacturing, Q.E.P. Company and Mike Niechwadowicz,

Senior Production Underwriter.

Client Recognition Award

Affiliated FM, NY presents a client recognition award

to Q.E.P. Company, Inc. management in recognition of

their on-going commitment to property loss

prevention. This was demonstrated by the client’s

Ignitable Liquids risk improvement that eliminated

several significant exposures at their Johnson City, TN

facility.

Q.E.P. Co. has been a client of Affiliated FM over 20

years. They are a manufacturer, marketer and

distributor of a broad line of flooring tools and

accessories for the home improvement and

professional installer markets.

The Client Recognition Award

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From the desk of Leonard Gould

Greetings –

I hope this newsletter finds everyone well in all the corners of the globe we reach!

Well, for the most part, we are finally seeing signs that the long world-wide recession we have been battling for the last few

years is loosening its grip on our industry. Consumer confidence, new home construction, re-sales and remodels are up

moderately. While this is unquestionably great news, it also brings new challenges to face. While Q.E.P. held fast, and even

managed to grow during the long recession, pricing pressures from our largest customers brought our profit margins to the

slimmest they have ever been. A growing economy also brings new competition. How can we keep our edge with the up-

and-coming challengers nipping at our heels and no wiggle room left in our pricing? That issue brings controlling businesses

costs to the forefront. So whether you are in purchasing, sales, manufacturing or office staff, your cost control efforts are a

big key to our continued success.

In our business, products are won and lost over pennies (pence, etc…). Those pennies make the difference between not

only getting an order and losing it, but getting customers and losing them. Well, we want that business. So with that in

mind, let’s fight hard for what needs to be purchased. See a way to do your job, or another, better? Let someone know.

Looking for office supplies? Checks with those working near you first – they may have excess. Done for the day? Power

everything down. Treat the company’s money as your own and we can compete with anyone.

Of course there are other ways we give ourselves an edge. Let’s continue to provide our excellent customer service. Take

pride in shipping accurately and on-time. Always be more responsive than the next guy. When we always present ourselves

as the most professional and efficient vendor, our customers will not be so quick to go elsewhere.

The big question left is “Who is responsible?” or “Whose job is it?” Well the answer is the same to both questions. It is up

to all of us together.

So please, join me in doing our part to continue to make QEP one of the leanest, meanest company’s out there in the global

economy.

If you have ideas on cost savings to share personally, please email me at Len_Gould@qep.com

People make it happen,

Best Regards,

Len Gould

Len Gould

President

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In the Field

Visiting Hantronic This spring, Sam Laverty, QEP Australia Operations Manager and Terry

Hirschman, QEP Shanghai Vice President of Global Sourcing took a visit to

Hantronic. Hantronic is the longest serving QEP factory in China; we have

worked with them for nearly 30 years. Pictured to the left is the Hantronic

team with Terry Hirschman and Sam Laverty. QEP Australia is now working

with Ardex, the world’s largest manufacturer of floor levelling powders on a

vast range of ceramic tiling tools.

MET Training at Store 3011 in St Louis

MET Training in Illinois this spring

MET Training at Store 1922 split into two different groups

to provide one on one session to go over the HDX items,

new products and questions as well as training for the

new hires that started this spring.

MET Training in Wisconsin this spring with our team showing off the new

QEP brand bays at Home Depot

MET Training

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In the Field

Vitrex Luxury Vinyl Flooring

This Spring, two new high quality flooring solutions were launched into

national accounts across the UK.

Wicanders Cork Flooring distributed by QEP UK is available now to buy

from select John Lewis stores - a range of 12 beautiful and expressive

cork flooring finishes to suit each individuals homes and taste. The style,

charm and sophistication of these genuine natural designs create an

atmosphere full of authenticity and character.

Combining traditional and modern features, cork comfort floors are

made of a unique multilayer structure. The top finishing layer of wear

protection prevents scratches and provides stability, warmth and

comfort under foot.

The core cork layer, due to its resilient qualities, has the ability to bounce

A range of the Wicanders Cork Flooring

available in the UK

back from hard impacts which makes it very robust, increases the life span of the flooring, and there is no need to invest in

extra underlayment to improve sound and thermal properties. Natural cork cells are perfect sound absorbers and insulators.

Vitrex Luxury Vinyl Flooring is also now available to buy from select Homebase stores across the UK. Luxury vinyl wood planks

simply float over most existing surfaces, so there are no added installation costs. Available in Light Oak and Richmond Oak

colors, Vitrex Luxury Vinyl Flooring is a quality and cost effective DIY solution guaranteed for domestic use for 15 years.

Luxury Vinyl wood planks are warmer and quieter under foot than most hard flooring. They are simple to lay, and the

excellent water resistant qualities make the flooring suitable for all areas of the home including kitchens and bathrooms.

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Social Media

--Jennie Johnson, Marketing Communications Specialist

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In the Field

NTCA Goes Cross-Country

China’s Trade Surplus Figures ‘Over-Inflated’ China’s trade surplus figures in the first four months of the year were over-inflated by hot money smuggled into the country to

profit from interest rate differentials and investments in the real estate and financial sectors, amid the yuan’s appreciation, this

according to economists.

If the fake transactions, which were disguised as trade payments, are not taken into account, the real surplus for January-April

was about $6 billion, about one-tenth of the official $61 billion figure. That would be the smallest trade surplus figure in the

January-February period after the country reported a $10.8 billion deficit in 2004.

“Exports were definitely inflated in the first four months, and mainly driven by shipments to Hong Kong, and exporters over-

reported the prices or repeatedly exported the same batch of goods to bring in hot money as the interest rates are much higher

than in many other countries.”

In a May 10th, 2013 report, shipments of gold between the mainland and Hong Kong were used by exporters to arbitrage the

difference between the onshore and offshore exchange rates for the yuan as the valuable metal. The method, which has low

transportation costs, is an ideal channel for speculative money flows.

In April, exports grew 57% from a year earlier, compared with 93% in March, while exports to Chinese bonded areas increased

249% year-on-year after rising 343% year-on-year in March.

The real trade surplus in the first four months was surely not as high as indicated by the official figures as the alleged fast export

growth was not matched by other economic indicators, including power output, power consumption, factory production and

employment levels in the manufacturing sector.

The State Administration of Foreign Exchange said on May 5, 2013 that it will boost is scrutiny of export invoices and impose

tougher penalties on companies that provide fake data to crack down on hot money inflows.

The National Tile Contractors Association

(NTCA) traveled cross-country at the beginning

of the year hosting one-stop educational

training events. Our new QEP brand logo was

featured on the passenger side of the NTCA van

along with various other industry competitors.

14

In the Field

Nupla Attends Grainger 2013

Florida Swimming Pool Association

The Florida Swimming Pool

Association (FSPA) is a trade

association for companies related to

the swimming pool industry. This

spring FSPA held their annual Golf

Tournament in Jacksonville, FL in

conjunction with Northeast Florida

Pool & Spa Golf Classic. Premix

Marbletite Mfg. (PMM) was

sponsored at one of the holes.

This March, Nupla attended the Grainger Show in Orlando, FL.

This show was held over four days with over 300 vendors and

over 9,000 customers and associates in attendance. Nupla tools

were shown in our very own Nupla booth as well as the Grainger

Firehouse booth where we offer over 300 Nupla branded

products to Grainger.

Pictured to the left is a wide range of Nupla products

shown inside the Nupla Booth at the Grainger Show

2013. Pictured above right: A Grainger Sales Manager

inside the Grainger Firehouse booth with a Nupla Axe.

In the Field

15

When Your Life Depends On It!

FDIC is the world’s largest fire training-based conference and exhibition dedicated to delivering the finest training

available to the men and women of the fire service industry. Top companies from around the world travel to exhibit

and showcase the latest tools and technology designed to save lives. Nupla attended the 2013 FDIC show in

Indianapolis, Indiana this April to showcase a various range of products used in the fire training industry. This year’s

show was very successful with over 30,000 attendees and exhibitors.

Get the Stripe

In the Field

16

Homelux Enters the New World of Mosaics

Homelux is extending their product portfolio with the exciting

launch of a new and innovative range of mosaic tiles. These tiles

are available in various materials including glass, natural stone,

wood and metal. There is sure to be a style that suits everyone’s

taste while also creating a personalized look.

“Mosaic tiles are a natural extension to our existing listello border

range, and complement our current product categories.” Becky

Firth, Marketing Manager for Homelux said, “With flexibility in

the application of mosaics, both DIY consumers and professional

fixers can cut and use the mosaics as thin or wide borders, as well

as for the usual feature walls, zoned areas and splash-backs.”

Shown to the left is a fixture in Homebase. Homebase is one of the

leading home enhancement retailers in the UK. The mosaic tile

range is sold in single sheets. This fixture uses mini-live displays in

front of where the stock sits to show the end user how it will look

in-situ with grout.

Shown to the left is a sample of

Calgary- Mixed Material-Glass,

stone, wood and metal.

Shown below is a sample of the

Gin- Glass with iridescent and

glitter inserts.

In the Field

17

In the Spotlight

Welcome Aboard!

Larry King Jr., Maintenance Manager in Johnson City

Gregory King, Human Resources Manager in Johnson City

Lovie Lindsey, Customer Service Representative in Boca Raton

Charles Garlinger, Assembly Operator in Montpelier

Ernest Brooks, Shipping Processor in Dalton

Jason Clark, Bagger in Pompano Beach

John Lavery, Plant Manager in Dalton

Gerald Debity, Maintenance Technician in Dalton

Nicole Anderson, Human Resources in Boca Raton

James O’Dell, Shipping Clerk in Johnson City

Steven Holcombe Sr., Shipping Processor in Dalton

Meagan Gallagher, Economic Sales Coordinator in Boca Raton

Andrews Leao, Assistant Web Designer in Boca Raton

Luke Baxter, Branch Manager in Gosford Australia

Lincoln Croak, Sales Representative in Newcastle Australia

Natalie Shkolar, Sales Representative in Canberra Australia

Kelly Liu, Sourcing in Shanghai China

Cassie Bayes, Marketing Assistant in UK

David Savage, Head of Supply Chain and Operations in UK

QEP would like to extend a warm welcome to these associates who have recently joined our team this quarter!

The National Hardware Show This May Q.E.P. Co., Inc. exhibited at The National Hardware

Show in Las Vegas, NV. The National Hardware Show is the

place for global manufacturers, associations, organizations and

the media to release and show new products and ideas to a

broad spectrum of the home improvement industry. This year

our booth displayed a large selection of our brands including

the QEP brand, Roberts, Porta Nails, Nupla, Hisco, Ludell,

Homelux, Vitrex, PRCI, Plasplugs, Attic Storage Stilts, InstaGrip,

InstaLift and our Engineered Wood Flooring. This was the first

show that we’ve exhibited all of our brands under the QEP

Corporate umbrella in one booth and our 30x40 booth gave us

an enormous presence at the 2013 National Hardware Show

this year to create a very successful show!