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Message from the President

Welcome to VARGUS Ltd.Harry Ehrenberg Chief Executive Officer - VARGUS Ltd

As an industry leader for over 50 years, VARGUS' pioneering spirit, commitment to R&D and customer-centered approach continues to drive our development as a provider of market-oriented solutions based on cutting-edge technologies.

2011 was no exception, with the introduction of GROOVEX - a new line of innovative grooving solutions for groove turning, groove milling and micromachining applications for industrial use. We are also proud to announce new offerings from our flagship Vardex and Shaviv product lines. From Vardex, we launched cutting edge industrial solutions for gear, spline and rack manufacturers. From Shaviv came our newest Ceramix line of curved ceramic blades for deburring and finishing rounded edges.

This past year we also increased our investment in our manufacturing infrastructure in order to ensure that we can continue to meet the demand for our leading product lines worldwide. This strategy is further backed our global distribution network, which ensures that our customers receive nothing but the best possible service, top quality products and reliable delivery.

Above all, Vargus is powered by people. From the engineers and technical staff to production and marketing professionals, right up through to Management - the entire VARGUS team works together to deliver ever greater value to our customers.

In the year ahead we look forward to continuing to strengthen our position as an industry leader and providing the best tools with the best results.

Enjoy your visit to www.vargus.com.

Best regards,

Harry Ehrenberg

Advanced Threading Solutions