In May of 1984, Parker Tobacco Company, a family owned business, founded in 1932, purchased the 1 million square foot complex, owned and operated by Brown & Williamson Tobacco Company for the storage of its processed tobacco. The buildings making up the facility, built between 1932 and 1962, were used as a single use facility for the storage of tobacco.

In 1985, because of the changing nature of the tobacco industry, Parker Tobacco Company's corporate strategy focused on efforts to diversify the products being stored in the warehouse complex from single use, tobacco, to multi-use. To accomplish this strategy, the warehousing portion of the business began operations as Parker Tobacco Company dba Parker Commercial Storage and Distribution. At the time, the company faced a number of obstacles including a lack of business contact outside related to the tobacco industry, and only nominal working capital available, and most importantly, no marketing plan. In addition, the only fixed assets of the company consisted of 1 million square feet of antiquated warehousing space, with low ceilings, wooden floors and no backup docks, and 39 acres of vacant land.

During 1985, the major efforts of management centered around filling as much warehouse space as possible, with long term customers. Because of the Company's ability to offer space at below market rates, the Company was able to attract and receive an award for a U.S. Customs examinations station. The station's activities consisted of receiving inbound freight for U.S. Customs and providing handling services. These bonds allowed the Company to manipulate product and receive product duty free, until such time as it was removed from the warehouse. With the addition of these bonds, the Company had the ability to handle containers of imported products for inspection by U.S. costoms and for storage.

In April of 1991, the current management of Parker Commercial Storage and Distribution, acquired the assets of Parker Tobacco Company dba Parker Commercial Storage and Distribution from Parker Tobacco Company.

From the initial contract with U.S. Customs, the Company has developed an excellent track record and reputation. Today the Company has acheived its targeted occupancy rate of between 85 and 95 percent. The Company maintains its bonded warehouse facility, the U.S. Customs Examination station, a steamship container pool, and consolidated freight station and export packing services. The Company operates a facility and has been awarded numerous government contracts for the storage and auction of seized items. Warehouse and Distribution as a third party logistic coordinator occupies 80 percent of the total operation.

The fixed assets of the Company consisted of 57.12 acres of commercial land located in a Commercial Zone in South West Louisville, Kentucky. Improvements consist of thirty-nine, 1 and 2 story metal warehouses containing 1,000,000 square feet of income producing space.

Since its inception in 1991, the Company has been able to cultivate a reputation as a provider of medium to low cost warehouse space and high quality handling and distribution services. This reputation has resulted in the Company's ability to increase its average utilization rate from 75% to 95% over the last 14 years.

The Company is geographically positioned to take advantage of the opportunities presented by the Southern migration of business currently occurring in the United States. The Company's location provides a relative low wage rate, a well trained work force, relatively low utility and tax rates and an expanding customer base.

Although restricted in marketing activities, the Company has successfully filled its warehouse space to desired capacity, with a mix of both long and short term tenants, and large and moderate volume tenants. Geographically the Company serves a customer base which ranges as far away as Southeast Asia. The Company has been able to successfully develop relationships with manufacturing firms and third party vendors.

The Company believes that the primary contributor to its increasing revenue base will be strong growth in the out-sourcing of warehouse services for manufacturing firms. The major forces behind this growth include cost savings to companies from: (i) reduced employee, (ii) reduced inventory carrying cost, and (iii) increased flexibility in production scheduling, and an expanding import/export industry.

As the manufacturing output increases with the current economic expansion and the utilization of just-in-time inventory control continues to drive inventory carrying decisions, the demand for outside warehousing services is expected to continue.

Although employment practices are contrary to industry standards, more and more warehousemen are moving to the use of temporary employees, the Management of Parker believes that the higher quality can be achieved through the use of a stable and permanent work force.

The Company maintains this work force through payment of industry comparable wages, an attractive benefit package and incentive bonuses. With this package, the Company has developed a level of stability unmatched in the industry. The Company currently employs 35 individuals, of these 22 have been with the Company since its inception in 1991, and 8 were with the predecessor company, Parker Tobacco Company, for an average of 6 years.

The Company is currently located, not only within a relatively short distance of the major manufacturing areas of the country, it is also located within the major manufacturing radius of the local area. This benefits the Company's customers in that they are able to shuttle product shorter distances, and therefore, at lower cost and with less equipment to dray (truck) product to and from warehouse. Each enhances their ability to use just-in-time inventory control systems.

Since its inception, the Company has been able to cultivate a reputation for service and quality of work. Based on this reputation of high quality and low cost, and in the face of minimal marketing efforts, the company receives, on average, 10-30 unsolicited inquiries for space each month.

The overall capacity of the Company's buildings places it in the top 20% (by size) of all warehouses in the Southeast. This capacity coupled with 39 acres of outside space and the long length of the buildings, provides the Company with the ability to store, for short periods of time, excess railroad cars, trucks and containers.