Our company has a long history in the sheep and lamb business. Over the years the focus and direction of the company has changed but we retain our sense of history while embracing the challenges of the twenty first century. In 1945, The Melton Provision Company started meatpacking operations in San Antonio, Texas, supplying local grocery stores and sausage makers. In 1956, Southern Wool & Skin was formed as a division of The Melton Provision Company to make use of the skins generated by the packing operation. Until then, the skins were often considered to have little value and were sometimes disposed of via the landfill. Recognizing that this was a waste of a natural resource that could instead be put to good use, Southern Wool set about building a pullery. This operation removed the wool from the pelt and produced pickled pelts destined for use in various leather products. Over the course of the next several decades Southern Wool gained a reputation for top quality pelts, used in products as diverse as lampshades, chamois leathers, clothing and hatbands for the U.S. military. The recouped wool was sold to manufacturers for use in clothing, felt and other fabrics. In the late 60's we expanded operations and product lines by merchandising some of the product that had more value with the wool remaining on the pelt to a number of American skin exporters, eventually becoming suppliers to overseas tanners of shearling (lambskins tanned with the wool remaining of the pelt) ourselves. Because of our knowledge of skins and our operational expertise, it was a natural progression that we would eventually begin tanning operations ourselves. In 1989 The Melton Company expanded operations into Colorado, founding Nugget International to service major meat packers and lamb feeders located in the region. By working closely with our affiliated producers and procurers of livestock, we ensure that raw material is handled efficiently and innovatively at the source. We consider ourselves to be partners with our suppliers. We provide timely and accurate market information and projections, as well as advising them on their production practices that can often affect the value of their pelts. This can be as simple as advising whether or not to shear their lambs, or might entail anticipating a fashion trend which would make a particular type of pelt more valuable. With the fall of the iron curtain and the subsequent demand from Russia for jackets made from lambskin, Turkey soon developed into the world's leading manufacturer of double face shearling leather and garments. With American skins being particularly well suited for these products, Turkey became a very important market for American skins. In order to fully develop the potential of the Turkish market, we established an office and warehouse in Istanbul to better service our Turkish customers. Our facilities in Turkey allow even the smallest of our customers to conveniently inspect specialized lines in small lot quantities as well as obtain technical support, offering a degree of service and comfort otherwise not available. Today our reputation in Turkey is unparalleled. In 1998 we acquired Nelson & Sons, adding their renowned range of fashion and clothing shearling to compliment the footwear, saddlery and industrial leathers by then being produced by the Southern Wool tannery. Nelson & Sons shared our long background and were pioneers in the shearling tannery business in The United States. Founded by Bernie Nelson in the late 30's, Nelson is best known for contributions to the development of what is now known as Mouton Lambskin. This product was developed to replicate exotic furs then being made from the skins of Beavers or Seals. This soft, silky, highly polished shearling is now produced around the world as an environmentally sound and cost effective alternative to the use of many fine animal furs. Nelson expertise was also highly appreciated by U.S. aircrews in World War II, with warm shearling flying suits being standard issue in the days when heating in aircraft was unknown or at least often ineffective. With the combination of Southern Wool and Nelson & Sons, we offer a full range of quality shearling leathers. In addition to gaining an important product line, and in adding the highly skilled and experienced Nelson technicians and workers to the existing Southern Wool staff, we now enjoy the finest group of craftsmen and technical staff in the United States. Today, our combined operations handle in excess of 6,000 skins daily. While we specialize in American lambskins and lead our industry in those products, we often source products from Australia, South America, South Africa, and Europe to supplement our domestic supply. While we have a long and rich history, we believe this is only the beginning for our company. Our goal is to continue to provide our customers and suppliers with diligent service, quality products and honest, consistent value for many more years to come.