"The single greatest advantage in relocatable buildings is that they give school systems options."

Many school districts have received inquiries from the media and parents about their reaction to President Clinton's State of the Union address in which he addressed the need to replace many old and dilapidated school buildings and reduce the overcrowding which occurs in many schools. Earlier this week, Don Siegelman, the new Governor of Alabama, signed an executive order outlawing additional portable classrooms, unless specifically recommended by the state superintendent and approved by the State Board of Education on an emergency, case-by- case bases.

AAA Modular shares both these political leaders' commitment to education and we support their dedication to eliminate sub- standard facilities for our children. With the explosive and quickly- changing population shifts of our communities; with limited budget resources and the desire to not raise taxes; with the growing need for specialized classroom space; and the hope to see students attend schools in their own neighborhoods, school systems are often caught between the proverbial 'rock and a hard place' when trying to justify their utilization of relocatable classrooms.

To help clarify the issue, we've outlined and illustrated several points which we believe will help school systems respond to the media's questions and parent's concern in understanding this issue.

Relocatable classrooms were first introduced in the U.S. in the mid-40's. When people refer to relocatable classrooms as ‘trailers,' they are generally remembering the earlier and lower quality classrooms. In the past few years, technical advancements have enabled relocatable classrooms to be built as single classrooms or multi-story schools with concrete floors, brick exteriors, restroom facilities, complete plumbing, air conditioning, electric and heating. All these facilities are built in accordance with federal, state and local building codes. Relocatable classrooms can be as functional and aesthetic as a school wants them to be, including many options that older classrooms do not have such as computer and video cabling, restrooms and alarm systems. Relocatable classrooms may contain 600- 1 1,000 sq. ft. of classroom space and more under one complex roof system.

The single greatest advantage in relocatable buildings is that they give school systems options. With expanding populations, it is increasingly difficult to project where growth will occur and if an area's population increases will continue or decline. Often
times, schools are forced to add another section of a grade during the week of registration for students in early Fall. It's simply not possible to always predict growth spurts. When that growth can be projected, it is often financially prohibitive or logistically
impossible to build a new classroom in time to accommodate the students. If demographics shift or the need for a relocatable classroom at one location disappears, the relocatable classroom can be easily moved to a location with a critical space need.

As you can imagine, California is a state with a long history of population growth. The state has long embraced the benefits of relocatable classrooms: by law, in order for a school district to retain an annual state contribution, at least 30% of facilities added each year must be relocatable. Moreover, this law stayed in effect even after recent class-size reduction laws took effect! Florida and a number of other states are poised to follow suit.

Safety is always a concern when it comes to our children and we want our children to be protected in the case of a tornado or other severe weather. All permanent buildings are susceptible to damage and well- built relocatable classrooms, which comply with federal, state and local building codes, are no exception. We've all seen photographs of massive brick structures that were flattened after being hit by a tornado. The reality is that nothing withstands that kind of force. A few years ago during a tornado in Columbus, Georgia, gigantic portions of the roof of a local high school were ripped off, while two relocatable
classrooms, less than 100 yards from the damaged building, suffered no damage whatsoever.

To ensure student safety, low maintenance and longevity, AAA Modular stresses safety, code compliance, value engineering and aesthetics in the design of relocatable classrooms. Sometimes, school systems don't have any specifications or use old
specifications to design their classrooms and then have to accept the lowest bid for a poorly designed classroom. While you can get inexpensive relocatable classrooms, safety, code compliance, value and aesthetics should be priorities with school systems. Enhancing and strengthening the design specifications and considering the references of the seller of the relocatable classrooms leads to more functional and safer buildings for
our children.

Budgetary restraints are always a high consideration for school systems. As taxpayers become less and less inclined to pay for massive building programs, educators have to look at other financial options. Depending on the design specifications, functional, code compliant, relocatable classrooms generally cost between $15,000 and $25,000. Adding on just one classroom to an already-existing building can easily cost more than $ 100,000. Enacting laws that prohibit local school systems from making their own decisions on relocatable classrooms - without providing the billions of dollars it would take to build thousands of new classrooms and schools - amounts to another unfunded mandate. As any local school board member will tell you, these unfunded mandates are crippling our local school systems, forcing local taxpayers to abandon their priorities of what they want their schools to be.

A cost savings with relocatable classrooms is not strictly limited to the cost of the classroom either. By utilizing relocatable classrooms, many school systems are able to accommodate shifts in population, without having to bus students to other parts of town and the transportation savings can be significant. Students are spared the inconvenience and distress of having to spend hours on a school bus each day and they gain the advantage of being able to attend a school close to home.

Everyone agrees we need to strive for excellence in education for all our children. When faced with the dilemma of using tax- payer monies to hire and keep superior teachers and to purchase books, computers and necessary materials for classrooms - or to spend tax dollars trying to quickly build new classrooms to accommodate population shifts, which may or may not be permanent - many communities want the option of spending that money on the substantial items which truly affect the quality of a child's education.

As a member and supporter of many educational organizations (e.g. Georgia School Boards Association, Alabama School Boards Association, Georgia School Superintendents Association and the Alabama Council for School Administrators and Supervisors, to name just a few) we are committed to helping provide an excellent education for our nation's students. As parents of children who attend schools in Alabama and Georgia, we have a personal interest in the quality of our educational systems. As taxpayers, we want our tax dollars spent wisely and judiciously, with an emphasis on superior teachers, technology and curriculum that challenges and educates our children and our future workforce. Like many other citizens, parents, and business people, we want to ensure that our children receive an excellent education and we know that will take dedication and commitment to working on issues which truly affect the quality of our children's education.

We hope this report has provided you with information you can utilize to ensure that your school system is able to make the choices your community wants. We realize this discussion is critical to the future of our business success, but if we didn't truly believe in the cost-efficiency, the logistical options and the high standards of our product, we would not be in this business. If we can provide any other information, facts or figures, please don't hesitate to give us a call at 706-327-1732 or on our toll-free number at 1-800-277-7894.

Some of the facts and figures supplied in this information kit were obtained from the Modular Building Institute, an international association representing manufacturers, dealers, and suppliers of factory built buildings. You can obtain information on the MBI at their website at www.mbinet.org