Stories of Success0208ANNUALREPORT

Our People H Your Solutions

WELCOME: to Human Technologies Corporation

PROJECT: 2008 Annual Report

SUCCESS:

We believe that work is inherently dignified and fulfilling,

and that individuals with disabilities and other barriers

to employment deserve the opportunity to work and to

achieve their fullest potential.

happens here every day

Letter from the President 4

Stories of Success 6

2008 Highlights 18

Financials 18

HTC Divisions 20

Where are they now? 22

Coming up in 2009 24

Letter from the Board President 26

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ANNUAL REPORT

2008 captivated us with a a global finan-cial crisis, a historical presidential race and election, ongoing war(s), $4.25 gas at the pumps, Olympic achievements be-yond compare, political scandals, iPhone, You Tube and Facebook in our everyday lives and of course, great new opportu-nities for people with disabilities here at HTC. 2008 – a year we celebrate as WOW! One of my favorite books, Tom Peter’s, The Pursuit of WOW! Every

Person’s Guide to Topsy Turvy Times, seemed to be quite appropriate for 2008 even though he wrote it in 1994! For us at HTC we found ourselves im-mersed in new opportunities and creating new employment for people with disabilities; NAVFAC, Army Corps of Engineers, WCW, while at the same time needing to respond to the ever changing market place

around us and experiencing the pain and anguish of layoffs and work slowdowns. As the world began changing in the summer of 2008 we be-gan to feel the beginning impact of those changes and saw several of our manufacturing operations severely impacted. Despite these setbacks, we remained steadfast in our daily commitment to people with disabilities.

Last year we introduced you to some extraordinary HTC people. This year we continue and throughout the report you will meet inspirational

people and learn of their valued contributions to our success and see the impact they make each day. Through their stories you will see and come to know more about the Mission of HTC. You will also see that we produced and shipped more than 1,300,000 products for more than 43,000 customers and we served and supported more than 3000 people, with disabilities, here in Central New York. We believe, you too, will be WOWed!

As we look to 2009 and beyond, even in the midst of continued uncer-tainty, we are excited about the possibilities that lay before us. We will create more employment opportunities, unveil a new website, continue our ongoing quality improvement principles, build a strong business

development pipeline, be solution oriented for our customers and com-munities and continue to experience WOW!

We are focused on our responsibilities and are prepared to respond to our changing environments. Our Mission of enhancing the quality of life for people with disabilities is more alive and powerful today than ever before and we declare that Our People will be Your Solutions!

“I am working in my dream job and that’s because of people like this”.

A word of Wow! from our president...

Meet the people who make HTC a success while achieving successes of their own...

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Rebecca

Dennis Dave

Herb

Kevin Johnny

Petar T im

Joe

Kathy

Shwe

NAME: Rebecca Fogg

DIVISON: Graphtex, Embroidery Operator, 4 years

SUCCESS TO ME IS: Having a good place to work.

I’m finding my voice...

“ Rebecca has learned to trust us and now knows that we’re here to HELP her. I don’t even see her disability because she does the work so well.”

Anna Marie Lombardo Team Leader – Embroidery

Rebecca started at HTC in screen printing getting shirts off of the dryer and folding them. Her diligence and great work ethic caught the eye of the head of the embroidery department, which operates just across the room from the screen printing. Rebecca had never worked on a sewing machine before, but took to it like a duck to water and is now a valued member of a team successfully churning out the most detail-oriented, scrutinized products at the company. If you poke your head in on Rebecca at work, she could be overseeing pieces for the US Forest Service or the Boilermaker Road Race. She could be working on windbreakers, jackets, sweatshirts, polo shirts, t-shirts, bags or one of many other products that the embroidery team handles.

Anyone who works with her will tell you that Rebecca is quiet as a mouse, which was evident when asked if she sets a good example to others with her work ethic. She thinks it over intently and then says “yes” but almost in a questioning way – probably not realizing what a impression she leaves on others just by doing her job well.

How has this job changed her life? She shares, “I’ve gotten better with communica-tion... my delay has gotten faster because there are so many people around to talk with.”

Rebecca’s proudest moment was when she won the HTC “Works For Me” award, which honors the best in personal improvement.

Favorite band: Matchbox 20

Favorite TV show: Daily News with Jon Stewart

Favorite food: Mexican

Favorite after work activity: Going to the gym for some cardio

“ I was her first job coach at Graphtex and witnessed a young lady blossom into a well trained, disciplined worker who surprised a lot of people.”

Charles Sardina Employment Specialist

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NAME: Dennis Colburn

DIVISON: Maintenance Plus, 5 years

SUCCESS TO ME IS: IndependenceAlthough Dennis’ deafness causes a communication barrier, people always say hello or shake his hand when they see him at work, and that gives him a sense of belonging that he has not been able to find anywhere else. Before coming to HTC, Dennis did odd jobs here and there on a short term basis and even though projects like that give him joy, they weren’t completely fulfilling.

At Maintenance Plus, he fixes things inside and outside, does outside mainten-ace work (even in the winter, he makes sure to share!) and does a variety of clean-ing jobs. Simply put, he likes fixing things. Even when asked what he likes to do after work for fun, his reply is “Fix things!”

Success to Dennis is having more independence and experience. He is proud when people say they like the work that he does for them, which as you get to know those who work at HTC, is a very prevalent feeling.

HTC has been a resource for him to come to no matter what. Even if the prob-lem is not work related, they’ll put him in touch with those who can help. It’s comforting to have a place like that. He knows he’s not alone and knows that he can look to the company for guidance at any time.

In parting, Dennis shared this about the work he does: “I like it. Sometimes I’ll look at my watch and can’t believe it’s time to go home already!”

A place for me to belong...

Favorite celebrity: Harrison Ford

Favorite TV show: CSI

Favorite food: Italian

Favorite superhero: Superman

7

“ The things we do change every day – sometimes 2-3 times a day, and Dennis is right there keeping pace. We’ve worked out a great way to communicate with each other and his work speaks for itself.”

Joe Herubin Supervisor

“ Dennis Colburn’s deafness has not stopped him from being a hard working and likable coworker. Dennis is one of the few PMG workers that worked in all the services provided by PMG. We all forgive him for being a diehard Red Sox fan..”

Paul Huening Vice President, Business Services & Governmental Affairs

NAME: Herb Williams

DIVISON: Sunrise Cafe, back of the house, 22 years

SUCCESS TO ME IS:

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Herb is a war veteran that has been working at the Sunrise Cafe for 22 years. He’s the hardworking “behind the scenes” guy that claims, “My job, to me, is my life. I forget I have a disability here - without work, I’d have problems.”

Herb has worked in restaurants all his life in many capacities. His everyday responsibil-ities now include prepping for breakfast and lunch and clean up – the very important back of the house maintenance that keeps the cafe running smoothly. Over 22 years, he has seen the amazing evolution of the Sunrise Cafe. The cafe used to be recipients of government-issued food, now they’re ordering from Sysco like a regular restaurant. The whole kitchen has come a long way - the way they set up and look at the whole picture and the way that the workers get along with their disabilities.

Success to Herb is being able to enjoy his job and his friends and not being afraid of being able to pay his bills. “They have put me together,” he quietly reflects. “They gave me my break.”

People at HTC have helped Herb meet any crisis that he’s ever had to deal with and for that he is more grateful than words can express.

In a final thought he humbly shares, “I’m at the place I belong.”

This was my break...

Hobbies: Stamp collecting and reading military books

Pets: His true companion, a cat named Ookie Man Chan

Favorite food: Riggies

Favorite TV show: CSI Miami

“ Herb goes to extremes to be here at work because he’s just that dedicated. He’ll go out of his way to help others.”

Pat Moreland Operation Manager, Food Service

“ He’s a good, hard worker and gets everything done. I enjoy working with him. ”

Lisa Baskerville Sunrise Cafe Co-worker

NAME: Dave Mentus

DIVISON: Property Management Group, Project Manager

SUCCESS TO ME IS:

tackling a challenge!

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ANNUAL REPORT

When asked for a favorite story Dave says, “Stories.. there are so so many... each person and each situation at HTC is amazing.” Including his!

Originally from Guinea, a tremendous story of travel and adventure led him to his home here at HTC. He spent two years on a yacht traveling to Brazil, Turks and Caicos, French Guinea and every other island in the Caribbean. He eventually made his way to New York City and then on another adventure to Upstate New York, he fell in love with the area, found the job of a lifetime at HTC and commuted from New York City daily until his family was able to join him.

Dave is responsible for new business development and quoting, and looking after all PMG employees. He tells the crew what is expected of them on any particular job and makes sure the job gets done. The best advice he’s ever received was from his boss when he first started at HTC: “Don’t be afraid of making decisions.” That, he claims, has made him the leader he is today. He excitedly shares, “My adrenaline is ON when there’s a challenge.” And he has challenged himself. “I work with numbers on different bids that I never thought I would be crunching. It’s given me tremendous confidence.”

He is excited about the future for the company and the recent growth into the Syracuse market. For the first time, employees from outside the Utica area are joining the team in company-wide meetings and to see that kind of growth is so rewarding.

My ship has come in...

Hobbies: Gardening, growing vegetables and family

Pets: He never liked pets, but after a 3 hour debate over a kitten, Dot is now one of the family

Favorite food: I’m from the Caribbean... I love my rice!

Favorite TV show: documentaries and loves the news

“ He taught me everything I know. He’s a great trainer and not afraid to get his hands dirty – he works right there beside us. He’s got a great story and I look at him and think ‘If he can do, I can do it!”

Luis Lopez ProClean Supervisor

“ Dave Mentus has a positive “can do” attitude that permeates operations within PMG. Dave’s dedication, loyalty and hard work have helped PMG become the out- standing service that it is today. ”

Paul Huening Vice President, Business Services & Governmental Affairs

NAME: Candace Duncan

DIVISON: Manufacturing, Packaging/Assembling, 8 years

SUCCESS TO ME IS:

Is Candace a different person than when she started at HTC? “Very much so,” she shares. “I have a sense of worth and I’m comfortable with my surroundings. I truly feel like I’m amongst my peers here.”

Working in the manufacturing division doing packaging and assembling, she performs whatever she is called on to do and loves it all. She has worked on contracts for the Brewery Ommegang as well as a local cookie company. At work, she sees women in leadership roles and going through each day with an “anything can be done” attitude, and that has been an incredible motivator for her. Seeing women working together and treating each other with respect pushes her to be better and better.

She knows there is struggle all around her at work. People who have both physical and mental struggles are working just feet from her and she reminds herself everyday that “if that person can get up and come to work against insurmountable odds, then there’s NO reason that I can’t. No reason at all.” Her independence is her biggest success. “I take care of myself - pay bills, buy groceries, prepare my meals... I depend on me now.”

Where does she see herself at HTC? In the same great position, moving a little faster, concentrating a little more, and having a challenge to tackle every day. “The minute I walk through the door here, the energy hits me. You can’t beat a workplace like that.”

I feel like I’m needed...

Hobbies: She is a self proclaimed computer geek and loves to read

Favorite food: Steak and potatoes (but notes that she DOES like to eat healthy)

Favorite TV show: Anything to do with forensics - it’s fascinating

“ Candace is the most dedicated person to her job - her interest and enthusiasm inspires others to do their best.”

Susan Malanoski Operations Manager

“ What a great attitude! Candace is versatile, helpful, generous and her work ethic is great. We’re lucky to have her here working with us.”

Brian Delaney Senior Team Leader

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Kevin’s brother told him about HTC almost five years ago and he’s been here ever since. Working in DMS, he deems himself a “jack of all trades” and admits that he’s up for whatever task comes up for him. He’s loaded trucks with corrugated cardboard, he packs and ships orders for Brewery Ommegang and has hung wire for Northland Communications. “You do what you have to do,” he says matter of factly. He’s a quick learner and eager to try new things.

When asked what his coworkers would say about him, he exclaims, “I’m a cool guy!” He’s the jokester and keeps things lighthearted in the workplace. The best thing about HTC to Kevin is “good friends” and the help they give each other on the job. If he needs help lifting, there is someone right there to help - no questions asked. They’re a team and it makes them proud to see each other succeed.

While at HTC, Kevin was trained and licensed to drive the fork lift, which only a few people at the company are able to do. He is excited that he now has acquired a skill that is very niche and makes him very marketable.

One of the biggest things Kevin takes pride in is recognizing safety issues and has earned himself many “Safety Dollars”, which are incentives that employees can use in the Sunrise Cafe. Safety is a big topic across all divisions of HTC and each employee is trained to be safe themselves and also to share any improvements they think could be made to make it safer for others.

I’m part of a team...

Hobbies: Deejaying

Favorite band: Def Leopard

Favorite TV show: Knight Rider (the original series)

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“ He is very dependable. You can always count on him to do what is asked.”

Candido Garcia Screen Print Operator

“ Kevin is so much more confident in himself now than when he first started. He’s not afraid to take on new challenges across many different divisions.”

Nate Linck Senior Graphic Artist

NAME: Kevin Canastar

DIVISON: Diversified Manufacturing Services, 4 years

SUCCESS TO ME IS:

NAME: Petar Kricka

DIVISON: Logistics, 6 years

SUCCESS TO ME IS: seeing people who want to work

Originally from Croatia, Petar lived in Serbia for five years during the war in his country and was eventually relocated to Utica. He was badly injured in the war and can’t perform a great deal of physical work. He has a strong background in hotel restaurant management from his home country, but due to the language barrier, he had difficulty finding a place to work. He came to the United States when he was 51, and laughs when he mentions that that’s a little late in life to be learning English. To this day he studies, reads, and sharpens his language skills. When he couldn’t afford to buy the newspaper, he made sure to ask friends to keep them after they read them so that he could get in some good practice.

He was referred to HTC and placed in logistics in the warehouse, where although he had never touched a computer before, it’s now second nature to him. He is in charge of shipping confirmation for a vast majority of items that come through the warehouse. Being at the company surrounded by a lot of other people has helped him learn the language better and now he communicates very well.

He sees other people with disabilities at HTC and is amazed at their drive to want to work. “In my country, disabled people don’t want to have skills or to work. I like seeing here that they WANT to.”

A quiet, intriguing man, Petar brings up the word “satisfied” numerous times. Escaping from unspeakable conditions and finding a place to call home in a new country is very satisfying for him. He is satisfied with his job and believes that the company is very satisfied with the work he does here. “They are nice to me. All of the time. Everybody.”

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ANNUAL REPORT

I have satisfaction...

Hobbies: Improving his English and walking

Favorite animal: Loves horses and used to ride all of the time in Croatia.

Favorite food: Chicken! Croatia didn’t serve much chicken, so now he eats it all the time.

“ When things need to get done, Petar is absolutely fabulous. When we’re busy and closing out our month, he’s the one to look to for diligence, speed and for going the extra mile.”

Leigh Dygert Materials Manager

“ He’s a very outgoing, hard working, focused person. He’s determined to meet his goal and he stays right with it until he does.”

Bob Lane Corporate Driver

NAME: Johnny McGill (a.k.a. “The Floor Guy”)

DIVISON: ProClean, 19 years

SUCCESS TO ME IS:

knowing the work is done well

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ANNUAL REPORT

The greatest things that Johnny McGill has in life – his house, his car, his health – are admittedly because of his job at HTC. It has given him the stability and consis-tency that was vital for him to become a contributing member of society and of his family.

Johnny works primarily at Rome Labs for ProClean, cleaning the floors in the 300,000 square foot facility. He has been nicknamed “the floor guy” because of his impeccable attention to detail and workmanship and overall pride in the job he performs. “If I get done with a floor and I don’t like what I see, I’ll stay and get it to the way I like it.” He fills in for many people when they’re ill or on vacation and if there’s a co-worker who is having trouble finishing their job, he’ll pitch right in. He also helps teach newer team members the ropesas they start their jobs with ProClean.

He is also thankful for great supervisors who really “work to get the best out of you and won’t accept any less.” Being a father, grandfather AND great-grandfather, working hard allows him to be a good role model for everyone in the family. And because of the steadiness that he has gained,he returns home happier and less stressed than ever. His job at HTChas truly changed his life.

I’m so thankful...

“ Johnny McGill is a very dedicated worker and has been for many, many years. He is our most skilled floor care person.”

Dave Mentus Project Manager

“ I’m happy when he gets home and he’s had a good time at work.”

Javon McGill Johnny’s 10 year old son

Hobbies: Fishing and cooking out

Favorite food: Potato salad

Favorite TV show: Reality shows

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ANNUAL REPORT

Tim’s laughter is frequent and his good nature is infectious to all around him. What you see is what you get with Tim – he’s the same genuine guy at work as he is if you see him outside of work. For the past six years, he has been working in the DMS divi-sion of HTC performing a multitude of tasks including handling materials, packing and inspecting and assembling of small parts. He also has responsibility to make sure that everyone has work to do on any given day.

Cross training is big at HTC and many employees learn skills in multiple divisions so they can become more well rounded and diversified for when the workload shifts. When Tim is asked if he’d like to train anywhere else, he quickly says, “I don’t sew!” He’s quite happy and always challenged in the manufacturing division, with every day bringing a new challenge. He views success as “getting the job DONE!”

He likes the people he works with and gets along with them well. He thinks his boss would say he does a good job and likes to tell jokes. (His co-workers will agree.) He’s grateful to have consistent work and claims that “If I wasn’t working, I’d get into trouble or just watch a lot of TV.” The job at HTC keeps him active and social and gives him lots of opportunity to keep very busy!

I like being at work...

Pets: Two dogs - Precious and Hooch

Favorite sports team: The Yankees!!!

Favorite TV show: Family FeudFavorite type of music: R&B and rap - especially Usher

“ It is a pleasure to work with Tim. He has the most energy throughout the day, always smiles and is willing to work very hard.”

Susan Malanoski Operations Manager

“ Tim’s come a long way! I can’t begin to express it... he’s more responsible, more sociable. He’s made more friends than ever before and HTC is definitely the reason why. ”

Rosie McFarland Tim’s Mother

NAME: Tim Pike

DIVISON: Diversified Manufacturing Group, 6 years

SUCCESS TO ME IS: Getting the job done!

NAME: Joe Hill

DIVISON: Property Management Group, ProClean, 17 years

SUCCESS TO ME IS: paying it f o rward

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ANNUAL REPORT

Joe has worked at HTC off and on since 1989. Currently, he is working with the very successful ProClean division and placed at the Army Reserve on Burrstone Road. His everyday responsibilities include “anything that’s put in front of me” – carpet cleaning, landscaping, general cleaning, etc. It helps build his confidence knowing that anything that comes his way can be tackled – he learns quickly and eagerly.

He gives his mom credit for his good work ethic. “My mom set a good example by getting me up at 5:00 in the morning to clean. I’ve always kept that work ethic with me.” Joe’s supervisor, Dave Mentus, has also been a great help to him. “He taught me how to stop putting myself down and how to work smarter, not harder.”

Success to Joe is paying it forward. He’s helping others and they’re sharing that with others right down the line. That’s the ultimate success.

An intense faith has kept Joe moving forward and helped overcome a difficult past. Now his purpose in life is to help others. “We’ve got to take a step of faith, encourage each other and lift each other up, not knock us down. That’s what the environment here is.”

I took a step of faith...

Hobbies: Anything with his four kids – kickball, fishing, you name it. “They say they can’t keep up with me!”

Pets: Two Chihuahuas

Favorite TV show: The Gospel Channel

“ Joe is a key member of the ProClean team and very skillful in all aspects of janitorial work.”

Dave Mentus Project Manager

“ I’ve worked with Joe on and off for 16 years and can see he’s a dedicated, hard worker. Whenever he gets knocked down, he keeps trying.”

Tom Denslow Area Supervisor

Kathy has a very hectic, very rewarding position at HTC’s Mental Health Connec-tions division. Overseeing ten therapists, making sure records are kept precisely and seeing clients herself makes for a very busy day, but it really is her calling. “I finally fell into the right path,” she shares. After being a secretary for 25 years, she knew there was more for her to do for the greater good – she wanted to help people.

At Mental Health Connections, she found a population of people that need a myriad of assistance. Her office offers services including case management, individ-ual and group counseling, family involvement and medication management to over 3,000 Oneida County residents each year.

Her favorite thing to hear? That the clients are sleeping correctly, eating well, talking to their families again, walking and getting out of the house. Things we take for granted in our everyday lives are enormous successes to these patients. “We are their support system,” she explains, “They depend on us to be there for them.” Some-times, people come into the office and are just completely overwhelmed and need someone to talk to right away. An excellent clinical team (both the front end staff and the therapists) make sure to get each person just the assistance they need.

Being at the company for 11 years, Kathy is humbled by the work and motivated by what she witnesses. “I listen to other’s problems and realize that mine aren’t that bad at all.” She sees people who want to work, want to get better and want to contribute and it’s a joy for her to be able to help make that happen.

I wanted to do more...

Pets: One dog named Sassy

Favorite hobby: Attending her twin 10-year old nephews’ sporting events

Favorite movies: Anything from the 1940’sFavorite food: Chicken. Any way, any how.

“ Kathy is one of those incredibly supportive people who leaves her door open and is always available to provide support. I’ve worked with her for a very long time and she has become a dear friend.”

Nancy Johnson Primary Therapist

“ Kathy is a conscientious, dependable employee who has the best care and concerns of both her patients and staff at heart.”

Ken Fehlner Director - Behavior Health Services

NAME: Kathy Herbst

DIVISON: Clinic Supervisor, Mental Health Connections, 11 years

SUCCESS TO ME IS: helping others

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ANNUAL REPORT

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NAME: Shwe Thu

DIVISON: Northern Apparel, 1 year

SUCCESS TO ME IS: being freeShwe has a tiny frame and speaks softly in broken English except for one moment of energy and perfect enunciation: “My government and I... we fight!” she exclaims while making boxing motions with her small fists. Shwe and her family are refugees from Burma who were relocated to Utica, New York.

Interestingly, while many refugees have trouble finding a job in their profession, Shwe is doing exactly what she has been doing since she was sixteen years old. While living in Thailand, she worked as a seamstress sewing baby clothes and women’s dresses. She makes her own clothes and also clothing for her two (soon to be three!) children. When she came to HTC, she fit in perfectly on the manufac-turing floor. She works swiftly and accurately on the large machines stitching large medical covers and chemical helmet covers and is cross trained in head harnesses.

She has been on the job for less than a year and her supervisors are already in awe of her capabilities - sewing and otherwise. She is learning English at the Refugee Center in Utica and is becoming more and more comfortable with her new country.

When asked about the people who work at HTC, she clearly knows what she wants to say, but the English words aren’t coming to her right away. She looks up and says, “Everyone like friend... like... sister!” Meaning in whatever language you put it, the people who work at HTC are like family.

I now have freedom...

“ Shwe is a huge asset to HTC. Her positive attitude, dedication to being a part of our HTC team and her talented, outstanding sewing abilities make Shwe the shining star she is.”

Theresa Voorhees Operations Manager

“ Shwe is an excellent worker. She is very knowledgeable in sewing and a quick learner.”

Deb Maynard Senior Team Leader

Favorite hobbies: Cleaning, seeing family and singing

Favorite TV show: Many! It helps with my English!Favorite food: Rice - every day.

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ANNUAL REPORT

REVENUES 2007 2008 Manufacturing $ 8,576,107 $ 8,114,783 Graphtex $ 2,585,349 $ 1,926,794 Property Management Group $ 2,752,000 $ 3,312,148 Behaviorial Health Services $ 2,223,334 $ 2,322,950 Pinnacle $ 583,703 $ 424,476 Warehousing and Distribution $ 1,277,279 $ 2,779,350 OMRDD & OMH $ 1,053,465 $ 1,061,804 Other Income $ 95,679 -$ 46,508 TOTAL $ 19,146,916 $ 19,895,797 EXPENSES 2007 2008 Wages & Benefits $ 6,720,827 $ 6,785,582 Material & Freight $ 8,589,594 $ 9,123,099 Occupancy Costs $ 458,545 $ 539,658 Depreciation $ 352,822 $ 364,469 Other Production Costs $ 1,093,633 $ 1,090,591 Outside Services $ 914,789 $ 892,875 All Other Overhead $ 862,744 $ 950,591 TOTAL $ 18,992,954 $ 19,746,865 BUSINESS OPERATIONS SALES 2007 2008 Federal $ 5,505,816 $ 5,797,096 New York State $ 6,892,777 $ 7,708,448 Commercial $ 2,792,142 $ 2,627,531 TOTAL $ 15,190,735 $ 16,133,075

2008 was a challenging year for Human Technologies Corporation. Even though revenues were up 3.9% over 2007 in total, a $2 million increase in Building Services and Logistics was offset by a $1 million decrease in revenue in the Manufacturing and Graphtex opera-tions. Inconsistency in Federal contract allocations and budgetary constraints impacting New York State spend-ing resulted in the adoption of strict fiscal management practices in the second half of 2008 which continue in 2009. In spite of all this and a Behavioral Health program that also continues to struggle financially we managed to finish 2008 with a net income for our total operations. Federal and State business accounted for 82% and 84% of total Revenues from Business Operations in 2007 and 2008, respectively.

2008 Financial Results For Year Ending December 31, 2008

Manufacturing 41%Graphtex 10%Property Management Group 17% Behaviorial Health Services 12%Pinnacle 2%Warehousing and Distribution 14%OMRDD & OMH 5%

Wages & Bene�ts 34%Material & Freight 46%Occupancy Costs 3%Depreciation 2%Other Production Costs 6%Outside Services 5%All Other Overhead 5%

Property Management

Group17%

Graphtex10%

Behavorial Health

Services12%

OMRDD & OMH5%

Manufacturing41%

Warehousing andDistribution14%

Pinnacle2%

Material and Freight46%

Depreciation2%

Occupancy Costs3%

Wages and Benefits34%

Other Production Costs6%

All Other Overhead5%

Outside Services5%

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REVENUES 2007 2008 Manufacturing $ 8,576,107 $ 8,114,783 Graphtex $ 2,585,349 $ 1,926,794 Property Management Group $ 2,752,000 $ 3,312,148 Behaviorial Health Services $ 2,223,334 $ 2,322,950 Pinnacle $ 583,703 $ 424,476 Warehousing and Distribution $ 1,277,279 $ 2,779,350 OMRDD & OMH $ 1,053,465 $ 1,061,804 Other Income $ 95,679 -$ 46,508 TOTAL $ 19,146,916 $ 19,895,797 EXPENSES 2007 2008 Wages & Benefits $ 6,720,827 $ 6,785,582 Material & Freight $ 8,589,594 $ 9,123,099 Occupancy Costs $ 458,545 $ 539,658 Depreciation $ 352,822 $ 364,469 Other Production Costs $ 1,093,633 $ 1,090,591 Outside Services $ 914,789 $ 892,875 All Other Overhead $ 862,744 $ 950,591 TOTAL $ 18,992,954 $ 19,746,865 BUSINESS OPERATIONS SALES 2007 2008 Federal $ 5,505,816 $ 5,797,096 New York State $ 6,892,777 $ 7,708,448 Commercial $ 2,792,142 $ 2,627,531 TOTAL $ 15,190,735 $ 16,133,075

Manufacturing 41%Graphtex 10%Property Management Group 17% Behaviorial Health Services 12%Pinnacle 2%Warehousing and Distribution 14%OMRDD & OMH 5%

Wages & Bene�ts 34%Material & Freight 46%Occupancy Costs 3%Depreciation 2%Other Production Costs 6%Outside Services 5%All Other Overhead 5%

Property Management

Group17%

Graphtex10%

Behavorial Health

Services12%

OMRDD & OMH5%

Manufacturing41%

Warehousing andDistribution14%

Pinnacle2%

Material and Freight46%

Depreciation2%

Occupancy Costs3%

Wages and Benefits34%

Other Production Costs6%

All Other Overhead5%

Outside Services5%

Manufacturing 41%Graphtex 10%Property Management Group 17% Behaviorial Health Services 12%Pinnacle 2%Warehousing and Distribution 14%OMRDD & OMH 5%

Wages & Bene�ts 34%Material & Freight 46%Occupancy Costs 3%Depreciation 2%Other Production Costs 6%Outside Services 5%All Other Overhead 5%

Property Management

Group17%

Graphtex10%

Behavorial Health

Services12%

OMRDD & OMH5%

Manufacturing41%

Warehousing andDistribution14%

Pinnacle2%

Material and Freight46%

Depreciation2%

Occupancy Costs3%

Wages and Benefits34%

Other Production Costs6%

All Other Overhead5%

Outside Services5%

2008 Revenue 2008 Expenses

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ANNUAL REPORT

Our Divisions

Graphtex is the area’s leader in screen printing and embroidery for corporate apparel and special events merchandise as well as specialty printing on everything from coffee mugs to mouse pads. Starting in 1992 with just 3 employees doing image-transfers on mail bags for the US Postal Service, Graphtex has grown to now employ 11 people in three departments who serve a wide array of government and commercial clients.

In 2008:

• Graphtex completed over 10,000 pieces

for the Boilermaker Road Race

• 190,000 items were completed by Graphtex,

including screen printing, embroidery and

sublimation projects. (This number is in

addition to the Boilermaker pieces!)

• One more team member was added

• A new 4-head screen printing press was added

Behavioral Health Services Division is comprised of two distinct entities dedicated to assist those facing mental or behavioral obstacles. The performance enhancement company, Performa, works with employers and employees to set up programs that foster work/life balance and wellness, while mental Health Connections operates two outpatient mental health clinics in Utica and rome. Since 1992, clients have been able to obtain much needed help with anxiety, depression, psychotic disorders, anger, gender issues, women’s issues, co-existing substance abuse and more.

Property management Group at HTC is a division that can handle every aspect of caring for a commercial or residential property, inside and out. It all started over 23 years ago with the professional cleaning service, ProClean, that still today takes on anything from a one time deep clean of an apartment complex or dormitory to regular daily cleaning for an entire office building. forever Green offers full grounds maintenance service, enhancing the appearance of a facility’s grounds while offering the proper maintenance required in today’s marketplace. maintenance Plus handles a myriad of construction needs such as flooring installations, replacement windows, building decks and ramps and much more.In 2008:

• Mental Health Connections provided 8,731 prescriber visits and 16,137 therapy visits, for a total of 24,868 client visits.• Implemented credit card/debit card transactions as a means of payment.• Mental Health Connections, Utica, operated with a staff of 21 regular employees and seven independently contracted prescribers.

In 2008:

• Hired an employee from the Glenville area as our first HTC employee outside of our Utica-Rome operating area for the janitorial service at NAVFAC site - a 92,000 sq. ft. military reserve center for the Navy, Army and Marines.• Started up three NAVFAC sites in Buffalo, Rochester, and Syracuse.

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In may of 2007, HTC’s custom designed, state-of-the-art warehouse and distribution center opened its doors. This division serves all of the storage, fulfillment and shipping needs of various government and commercial clients.

The facility was built with growth and flexibility in the forefront, using a pallet racking (vs. shelving) system that will allow for reconfiguration as HTC becomes the third party logistics (3PL) provider for more and more organizations in need of added capacity and efficiency. The Warehousing and Distribution team, made up of over 90% disabled employees, is highly trained and embraces some of the latest industry best practices.

manufacturing is where it all started over 50 years ago. Today, HTC’s manufacturing division, 107 employees strong, is comprised of two sectors: Northern apparel, a precision sewing company, as well as Diversified manufacturing Solutions (DmS), the packaging and assembly specialists. Since 2002, DmS has been providing high quality blister packaging, custom packaging, and hand and conveyor line assembly for commercial and government customers around the country. The Northern apparel team specializes in the sewing of various textile products, many of which are created to meet military and other advanced industry specifications. many garments are made from scratch with specialists trained in every step of production.

for more than 20 years Pinnacle’s employment Special-ists have been dedicated to serving job seekers who face barriers to employment. over the years, Pinnacle has helped individuals throughout Central New York reach new heights with customized employment programs based on their specific strengths, talents, circumstances, limitations and career goals.

Through funding by federal, state and local agencies and grants – Pinnacle is able to serve a broader population than many employment programs.

In 2008:

• Was awarded Enhanced Supported Employment grant, a pilot program through OMRDD

• Served 354 consumers - 54 of which were placed, trained and have retained employment

• Worked with over 70 local employers who employed consumers through our program

In 2008:

• Started shipping for Army Corps of Engineers Uniform Apparel Program and Bureau of Reclamation Uniform Apparel Program in mid-2008• Moved an average of 7,000 individual items per month through the HTC system for the US Forest Service alone.

In 2008:

• Manufactured 233,660 chemical helmet covers and 238,000 head harnesses for the US Army.• Completed value added for 15,174 three-season jackets for the NY State Department of Corrections.• Punched lace holes on 52,845 pairs of inmate boots and shipped to correction facilities across the state.• Manufactured 61,936 mattress components for WCW, Inc.

Where are they now?We caught up with HTC employees that were featured in our 2007 annual report to see what successes they’ve had in the past year. With a strong cross training system in place at HTC, many have honed their skills and are now working in a new division. Others have reached amazing personal milestones.

Kathy Hobart

This year, purchased her own car aND her own home. She is now in her 6th year at HTC. “I have never felt such success as I have coming here to HTC. everyone has helped me.”

LealoTylerIn response to health issues and to give her a job that makes her day a little easier, Lealo moved to distribution. “They always seem to have a special spot for me here.”

Scott Fralick

Won an award through NYSID for “Best Perfor-mance” and says that he couldn’t have done it without the team.

Michael Peterson

mike returned to Northern apparel and is working on head harness assembly. This is his first time eVer using a sewing machine and his peers all agree he’s doing a phenomenal job.

Mike McMullen

mike is now in his 11th year with HTC in the PmG division working for ProClean. He has learned a lot of positive things and mcPike is exception-ally happy with the services provided to them by mike and HTC. Wayne Morrison

Wayne spent 2008 starting new accounts, learning more manage-ment skills and work-ing right alongside all the guys at ProClean. The dorm cleaning project at HCCC is most fulfilling - “It’s a big job and we take care of it all.”

Mike Carchedi

mike is now in Distribution pulling US forest Service orders and working on machines that punch holes in boots. He had never before operated a machine (he used to just inspect the boots) and his coworkers say “He’s the captain of that ship!”Quoting richie Valens, mike insists “I’m the sailor, not the captain”. (Yo no soy marinero, soy capitan).

Candido Garcia

is celebrating 21 years at HTC. The same crew is behind him every step of the way - and they are producing more pieces in the Graphtex Division than ever this year. other HTC members admire his inner strength and his dedication.

Betty Clark

Betty has moved to the distribution division - she does alterations, sewing patches and is THe “go to girl.” What does she think about that? (laughing) “It’s good to be needed!”

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Anna Marie Lombardo

The embroidery team continues to be particular to details and are very proud of everything they do. The samples for the Boilermaker are more detailed than any other year this year - and they are very proud of doing a good job at it.

The job requires focus and is scrutinized by customers. The mistakes are few and far between with this crew.

The PIT CrewBob Michaels, Deb Maynard, Christine Perry and Theresa Voorhees

The Process Improvement Team (or PIT Crew) added a new member this year and safety remains their main interest. The crew takes suggestions and implements solutions – like fans that were placed around the workspace to regu-late the internal temperature for all workers. an invention was made to help someone working on zippers for mat-tress covers that were too cumbersome, and the crew is in the process of putting exit signs throughout the building so new people can find their way out easily. The crew is also helping give one-on-one assistance to employees by making personal charts daily to help increase production.

Charles Sardina“I have the best job in the place”He shares a story of success from this year: a young man was hired relunctantly at a local restaurant as a dishwasher and quickly got promoted to food service and is learning new skills within the restaurant. “That’s someone who, under normal circumstances, might have failed, but now he is a success story... and to know that I helped is amazing.”

Clay Mowry

Now works within a couple divisions, depending on need.HTC is flexible and reliable - being able to go back and forth from division to division is a big help to him - cross training allows him to be useful in many different areas.

Jolene Franklin

Jolene continues her career in food service and got a promotion to team leader. This is the first opportunity she’s had in her life to be a leader and a manager. She recently got her own apartment and a car of her own. She loves “having power” and responsibilities.

Ron Michalowski

Had an injury last year that has kept him out of work for a while, but he can’t wait to get back. He shares about HTC – “I never believed that I would get what I wanted and needed... and they handed it to me on a silver platter!”

David Reed

“This company is there for you with any kind of help -they’ll get it for you”. reed is proud because for the firsttime at a job, when he comes up with ideas, “they actually listen and they do it - and 9 times out of 10 - it works!” He is almost unanimously voted the best dancer at all company functions!

Jennifer Papaleo

Jen crosstrained this year and now works in Graphtex on US forest Service orders.

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Coming up in 2009

Property Management Group was the division to watch in 2008 and is on track to be the one to watch in 2009 as well. Central Facility Management is a service that HTC offers that includes maintenance of a customer’s buildings and grounds. Janitorial service, groundskeeping, snow removal, pest control, rubbish removal and plumbing are the start. Custom repair jobs and HVAC services are also on the horizon to be offered. In 2008, PMG doubled the amount of properties that they offered the full scope of services to – from four to eight. That number is already increasing in 2009 due to a new contract with a government agency that will extend the scope of work into Pennsylvania, West Virginia and Delaware. This will increase PMG’s geographic reach dra-matically from the current cities of Utica, Rome, Syracuse, Buffalo, Glenville and Rochester. Professional contractors in these new states will be qualified and partnered with as well as renowned organizations, such as HTC, that offer services to those with disabilities. Training and project management will be provided by employees at the Utica location to assure that HTC’s respect for their employees and pride in their work is shared with the newest members of the team. As many of the jobs as possible in these new locations will be filled by individuals with disabilities, giving HTC a superb opportunity to spread their mission across three new states.

Also an exciting endeavor for HTC in 2009 is an opportunity to provide 24 hour rubbish removal and clean up for the New York State Fair for 12 days – the entire duration of the Fair. Over 150 employees, most with disabilities, are working the fairgrounds and grandstands this summer. Employees are from both Utica and Syracuse, continuing HTC’s employment outreach.

Central Facility ManagementWho can manage purchasing, inventory of 1,500 SKUs, shelving, order fulfillment, embroidery, packaging and shipping of uniforms for over 18,000 US Forest Service employees? HTC sure can. For the past two years, HTC has been working on a multi-faceted contract and doing it so well that the Army Corp of Engineers and the Bureau of Reclamation (an agency of the Department of Interior) are now on board for the same streamlined services.

For the US Forest Service alone, an average of 1,521 orders were placed monthly by the agency’s employees around the country. An average of 7,000 individual items were shipped out of HTC per month in 2008 and the new contracts are increasing those numbers in 2009.

Employees of participating agencies can log onto their website, view pho-tos and sizes on items and place their order. Items include dress shirts, polo shirts, jackets, outerwear, hats, trousers, buckles, belts, Stetson hats, parkas, socks, embossed nametags and even maternity wear. HTC man-ages uniform allocations for each individual agency employee and ensures that their account is accurate and updated each day.

Contracts like these give HTC employees tremendous cross-training opportunities, as the Supply Chain Logistics, Graphtex and Northern Apparel divisions are all utilized in the process. A handful of employees know every part of the fulfillment procedure from initiating a work order to final shipment confirmation. It gives them skills and marketability to be able to fit into the system wherever and whenever they’re needed.

Federal Uniform Programs

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ANNUAL REPORT

Federal Uniform ProgramsWCW, Inc. and Brewery Ommegang are two commercial ventures that take advantage of HTC’s streamlined systems and top notch customer service.

Northern Apparel manufactures a variety of components for WCW, Inc. that are used in their mattresses. Componets include mattress covers, air pocket sleeves, control panel covers and a new item, waterproof medical mattresses. Some of the final products end up in mattresses at Hilton Gardens hotels worldwide.

Brewery Ommegang uses HTC for two unique projects. The first is fulfillment and shipping for all of their online orders. Once an order is filled and shipped, the customer, the marketing manager and the Brewery itself gets an email notification that the order has been sent. Marketing managers for Brewery Om-megang from all over the country can also go online to order marketing items such as glasses, table tents, t-shirts, menus and tap handles and those items are pulled, packaged and shipped right at HTC. Marketing kits are also boxed and assembled at HTC. A total of 20,000 kits were assembled in 2008 and shipped all over the country. Now into 2009, the division is handling an average of 100 orders per month and the numbers are growing.

Another opportunity for HTC has come in the form of WC-19 compliant, crash tested and certified transport wheelchairs. The first order for 75 wheel-chairs was started in June 2009. HTC employees assemble the basic frame, seats, wheel, brakes and safety apparatus for each. These wheelchairs will end up in each state prison in New York that has a transport van.

Commercial VenturesHTC’s website is under construction and will be launched mid 2009. The new site, accessed by visiting www.htcorp.net, will give visitors rich insight into the company and will provide an interactive way to discov-er how HTC has helped its customers find solutions to their business challenges. Each “Solution” page featured on the site will include links for visitors to find out more about the HTC divisions and any HTC business partners that helped to make the solution possible.

The site is built with technology that provides HTC the ability to keep it up-to-date with fresh and timely content such as company news and available jobs, as well as featured content including product and service information, testimonials, solutions provided, and HTC employee spotlights.

In addition to the corporate website, HTC will be launching six new division websites that focus on each of the HTC divi-sions, helping to provide better depth of information about each service and improving listings in popular search engines like Yahoo or Google.

New Website Launching

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ANNUAL REPORT

An essential theme for our organization during 2008 was “Focus”. We had to focus our efforts and energies to meet the objectives of our strategic plan and continue to respond to the changing so-cietal and economic environments. We needed to continue to seek opportuni-ties that would increase the likelihood of full earnings and maximizing potential for people with disabilities. Without focus it would be difficult, if not almost

impossible, to meet our company expectations in a normal year, but 2008 was anything but normal!

With local, national, and international economies in a tailspin through-out much of the year, HTC refocused lines of business making them more multi-faceted, and positioning us to garner additional opportuni-ties in uniform distribution and property management in the future.

We also explored various avenues to enhance other business lines, some-thing that we believe the best companies do on a continual basis. While

we no longer may be able to be all things to all people, we can certainly provide more goods and services to more people in more ways.

Even with the review and refocusing of our business lines, we were not completely insulated from economic turbulence and some production areas had to experience short-term cutbacks and layoffs in order for the company as a whole to become stronger. The decision to alter or disrupt the employment status of any employee is never taken lightly, and it is only done as part of a careful business evaluation process. The process we follow is Mission driven and our intent is to first “do no harm” to those we are committed to serve and support and then to ensure that we as a company will be able to sustain those supports well into the future.2009 may have a tremendous amount of uncertainty, but I can say on behalf of the Board of Directors that our commitment to people with disabilities is strong and our efforts to provide employment is unwaver-ing. The certainty of who we are as a company does not change simply because the environment becomes difficult. We will continue to maxi-mize our strengths and further build upon our established foundations.

We believe there are many exciting things ahead for HTC, and as we are updating our long-range strategic plan in the coming months, it is critical that we get input and ideas from all stakeholders, who together will ensure that we remain focused on our future.

Our commitment to people with disabilities is strong and our efforts to provide employment is unwavering.

From Our Board President

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ANNUAL REPORT

Our commitment to people with disabilities is strong and our efforts to provide employment is unwavering.

OFFICERS

Chairman of the Board ……………………………..……. James H. BrockwayVice Chairwoman………………………………………... Andrea P. LaGattaTreasurer……………………………………………..… Barry G. DepotSecretary ……………………………………………… Rose WhitePresident/CEO………………………………………....... Richard E. Sebastian, Jr.

CORPORATE OFFICERS

Chief Financial Officer………………………………….... Barbara DeAngelisVice President of Business Services & Governmental Affairs..... Paul HueningVice President of Human Resources……………..……….... Linda ForthVice President of Manufacturing and Operations………….... Robert PayneVice President of Sales & Marketing………………………. Denise Filhan

Board of DirectorsJohn BachDirector of Communications & DevelopmentMunson-Williams-Proctor Arts Institute

James H. BrockwayVice President & Regional Manager M&T Bank

Barry G. DepotOperations ManagerWal-Mart Distribution Center

Mark FeaneExecutive DirectorHerkimer County IDA

James G. HillRetired - Business Development

Harrison J. Hummel, IIIPresidentHummel’s Office Plus

Andrea P. LaGattaDirector of DevelopmentSt. Elizabeth Medical Center

John J. PiseckSales Engineer Custom Tool and Model Corporation

William H. RandallAssociate PublisherMohawk Valley Business Journal

Donald A. St. LouisRetired-Business OwnerSt. Louis Gas

Nancy D. WallaceHuman Resources AssistantSUNYIT

Rose WhiteExecutive Director Hope House

2260 Dwyer AvenueUtica, NY 13501(315) 724-9891(315) 724-9896 faxwww.htcorp.netinfo@htcorp.com