GENERAL DEVELOPMENT OF THE BUSINESS

Decora Industries, Inc. ("DII") is a leading, worldwide manufacturer and marketer of self-adhesive, branded, consumer decorative products. DII, a holding company, is a Delaware corporation operating through its wholly owned subsidiaries, Decora, Incorporated ("Decora") and Decora Industries Deutschland GmbH ("DI Deutschland"). DI Deutschland owns approximately 90% of the voting stock of Konrad Hornschuch AG ("Hornschuch"). The main emphasis of DII and its subsidiaries (the "Company") is the world-wide development of its branded, self-adhesive consumer decorative products and of specialty industrial and commercial products, utilizing...