1st Quarter 2018 Quarterly Laundry Report FDR Services Begins Phase II of Hempstead Plant Renovation As part of our efforts to consistently provide the most innovative laundry solutions to our customers, FDR Services has started Phase II of our $10 million renovation project. We are excited to share that we are starting the following series of upgrades and installations to better serve you: Power Plant: FDR Services is installing three new parallel upright 150 HP boilers to reduce total plant natural gas consumption by approximately 30%. Other power plant upgrades include the installation of a new heat reclamation system, and an installation of our own well. We are also installing brand new compressors and air dryers in the plant, using less natural gas and automating the balance of the washroom. We will also incorporate the use of a code generator in Phase III. Thermal Ironers: We are installing a completely new line of self-contained thermal ironers. We will also be utilizing an ergonomic delivery system to all new feeders and folders with automatic traffic control to ensure all flat goods automatically reach the pack out location. Soil/Sort Rail System: Through the installation of a new soil/sort rail system, FDR Services will be able to automatically deliver linen directly into tunnels, thus eliminating double-handling of soiled linen and increasing efficiency. Site Improvements and Logistics: In an effort to create efficiency, FDR Services is installing new docks for both soil and clean linen.