FROM THE PRESIDENT'S DESK - NOVEMBER 2006

I just finished reading the "Direct Talk" newsletter published by Direct Jobbers Bill and Judy Shirk from Maine. Theirs is one of a number of Direct Jobber newsletters I receive and I enjoy reading them all.

The first paragraph caught my attention with the lines, "Just as the (AMSOIL) corporate philosophy is visible to us, so is our modus-operandi visible to the corporation. In my experience with the corporation over the past three decades, they are more than fair - especially when they see honesty and ethical performance (from us). We are VERY fortunate to be involved with a company like this!

"AMSOIL has product integrity and corporate integrity written in their past and it continues to this day."

That's quite a testimonial. The Shirks have operated an AMSOIL business since 1984, so they speak from many years of experience. They know that since AMSOIL adopted Multi-Level Marketing back in 1973, we have always put our Dealers' interests first. Our philosophy has been to provide the products and services for our Dealers to succeed, knowing that their success would result in our success.

The Shirks know that has not been the case with every MLM company. There have been numerous unethical MLM companies that have come and gone in the past thirty years, often leaving their Dealers with unpaid commissions, worthless inventory, and many lost friends and unhappy relatives who listened to and believed in them.

These companies usually developed a marketing plan designed to make themselves a lot of money, then plugged in some "super-duper" product or line of products that they could easily market to capitalize on their marketing plan.

What these fly-by-night companies accomplished was to tarnish the reputation of every honest MLM company and every honest MLM Dealer. We built AMSOIL around high quality products that deliver real world benefits and value to our customers. And we provide people with a legitimate opportunity to own and profit from their own MLM business.

Until we became established, we had to overcome the bad reputation that some unethical companies had given MLM businesses. We certainly did not want to be painted with the same brush, so we made sure everything about our company was on the up and up.

Our policy has always been to promote AMSOIL products with facts, not wild claims. Over the years, we have been complimented by many professionals, including our competition, for the straightforward way we promote our products.

That's not to say we're shy about claiming our products are the best, because they really are, and we can prove it. You're allowed to toot your own horn when you can back up what you say. We've never been successfully challenged in any of our product performance claims, because they have always been true. As a matter of fact, rather than be challenged, we have been copied by the major oil companies many times.

I am a person who believes it is very important to maintain a good reputation, both personally and professionally. My philosophy is to always try to be the best. I strived to be the best fighter pilot, the best squadron commander, and the best businessman I could be. The products we make here at AMSOIL reflect that philosophy.

Everyone here at AMSOIL takes pride in this company. We will not allow our products to be second best to any others. That's why we equip and staff a state-of-the-art chemical lab and testing facility. That's why many years ago we bought and installed the first and only NOACK testing machine in this country. Today, the NOACK is considered a standard motor oil test for the industry. And we have always insisted on the most stringent quality control standards in the industry.

Our goal is to always be the best and we meet that goal every day!

Throughout the history of AMSOIL, we have never been late with a payment to our Dealers and never issued a check that wouldn't cash. Our company enjoys a rock-solid reputation. It's a good place to work, a good source of income for tens of thousands of people, and a good corporate citizen in our community. I am proud of this company, it's employees, and our Dealers.

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

FROM THE PRESIDENT'S DESK...October 2006

With the growing number of synthetic and partial synthetic oils available today, how does the average motorist determine what oils provide the best value? That's really very easy. They should choose synthetic oils made by the company that actually proves their products are best, AMSOIL INC.

AMSOIL goes beyond the advertising hype and glitzy commercials that entertain, but don't really tell much about the products. Golden horses galloping across the screen may be interesting, but they don't really tell how an oil performs. The way AMSOIL proves its superiority is by actual comparison testing.

Run all the popular synthetic oils through a bank of tests and see how they compare, then publish the results.For instance, look at the Comparative Motor Oil Testing brochure (G-1971) from AMSOIL. It compares AMSOIL Synthetic 10W-30 to ten other synthetic and partial synthetic motor oils. As always, we publish the test results regardless of what oils performed best. In one test for cold cranking, another oil actually squeezed out a slightly better result than AMSOIL. But in six other lubricant performance tests, AMSOIL clearly outperformed the competition.

So what does the superior performance of AMSOIL lubricants really mean to average motorists? It means protecting their equipment investment by reducing wear and maximizing performance. It means savings in reduced fuel consumption, fewer oil changes, and very possibly, reduced maintenance costs. It means that when motorists spend upwards of $6 a quart for motor oil, they are getting full value for their money, and it can be proven with facts, not glitz.

Going beyond the benefits to average motorists, AMSOIL products are also a very economical alternative to conventional motor oils and filters in fleet applications.

An example of how much our products can save fleet operators over time is the subject of a new brochure (G-2244) available soon from AMSOIL. This brochure records an actual case study of Guardian Pest Control, a company based in Duluth, Minnesota that operates sixty vehicles in a seven-state area, most of which are Ford F-150 pickup trucks. It details how the company saved over $80,000 as a result of using AMSOIL products.

Using AMSOIL, the company's trucks stay in service 50,000 miles longer than with conventional lubricants. Due to the reduced maintenance with AMSOIL, they were able to quadruple the number of vehicles in their fleet without requiring additional mechanics. They reduced the amount of waste oil by hundreds of gallons a year.

To prove how well AMSOIL products protected these vehicles, one of the vehicle's engines was disassembled at 225,000 miles and found to be in excellent condition with little or no wear. Photos of engine components are included in the brochure.

This is another excellent example of how AMSOIL lubricants and automotive products deliver higher value for the money. It's true that petroleum lubricants and conventional filters are priced less initially, but they eventually cost motorists much more than if they bought the higher quality AMSOIL products to begin with.

The same is true when comparing other synthetic motor oils to AMSOIL. Not only are our lubricants proven better in comparison testing, but unlike most of the other synthetic oils, they are engineered for extended drain intervals. That means that, even though all synthetic oil prices are fairly close, a motorist only has to buy AMSOIL motor oil once over 7,500, 25,000 or 35,000 miles, depending on the AMSOIL motor oil used. Most other synthetics are recommended for normal drain intervals, which make them considerably more expensive over time.

You will notice that we have enclosed a new product price list in this Action News. I regret having to tell you that prices have increased. Better that I could say they decreased. The only consolation, if there is one, is that other oil companies must also increase their prices. It was just announced that ExxonMobil is raising its prices 24 cents a quart on packaged synthetic lubricants and other oil companies are doing the same.

To my knowledge, every oil company has had two price increases this past year and are announcing a third. We're all feeling the pinch. As I outlined earlier in this message, our products offer more value for the money. When spending around $6 for a quart of synthetic oil, you want the one that is proven best and performs longest. AMSOIL is always the best choice for the money! Always!

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

FROM THE PRESIDENT'S DESK...September 2006

I would like to share some thoughts about making personal goals and accomplishing them though your AMSOIL business.

What are your goals in life? What do you want to accomplish in the next year, five years or ten years? To some people this can be an embarrassing question because they don't have any goals. They drift through life waiting for their ship to come in never realizing that even if their ship does come in, it will be a ship without a rudder with no way to guide it. You MUST have definite goals and work toward achieving them if you want to be the master of your own destiny. And the higher you set your goals, the greater your achievement
will be.

Most people would consider as one of their goals to be happy and successful. Of course, the definition of success is different for all of us, but the end result that success brings is the same . . . self-satisfaction, security and financial independence. The problem is that few people are willing to pay the price required for their personal success, and that's a shame. It's a shame because the price is not really that high and we are all capable of achieving whatever level of success we desire.

You must start with a dream, an idea, a goal that is meaningful to you. Perhaps you want a new home, a new car, an education for your children, an early retirement with financial security, or perhaps you find yourself in a rut that promises no future and you just want something better in life . . . whatever you want or dream to have, put it on top of your life's priorities and start working toward achieving it.

Believe in yourself and have an "I can do it" attitude! At first it might be difficult . . . you will likely experience setbacks and periods of self-doubt. The important thing is to stick it out and finish what you start. Nothing in life worth having comes easy. And you don't need to be a "genius" to be a top achiever.

An average person with above average desire and perseverance can accomplish much more than an above average person with plenty of "natural talent" but no drive or ambition. That's a fact and we've all seen examples among our friends to prove it. The person who works hard and is a plugger has it all over the hotshots who may be smarter and even better, but won't follow through and get the job done.

This all relates to your AMSOIL business in many ways. You became an AMSOIL Dealer because you recognized an opportunity and grabbed it. Perhaps you saw a method of achieving your goals through owning your own AMSOIL business. Perhaps you saw the possibilities for a better life for yourself and your family.

Anything is possible for you in this business, but the success you are looking for is entirely up to you. Your AMSOIL business is a tool, and a very good tool, for accomplishing your goals, but the possibilities are only as great as your desire and willingness to go out and work hard to achieve them.

Don't waste this opportunity by not giving yourself a fair chance. Try not to get discouraged by faltering first steps. Stick to your objectives. The road gets easier as time goes by because you get better with time. Be a performer and a plugger . . . you may surprise yourself at what you can accomplish.

Your AMSOIL Business is one of the greatest opportunities to be found anywhere. Believe in it and work at it, and in five years from now you will wonder how you could have ever doubted yourself or AMSOIL.

A.J. "Al" Amatuzio
President and CEO, AMSOIL, Inc.

P.S. This President's Message was published in October, 1975, only two years after AMSOIL Inc. started in the MLM business. I came across it the other day and felt it was as pertinent today as it was over thirty years ago. Many of you reading it again now took my message to heart back in 1975 and used this AMSOIL Business to accomplish your goals. There are many of you who are Direct Jobbers today because you stuck to your guns and made the AMSOIL opportunity work for you. I applaud your success.

Then there were those who did nothing. They spent their time in front of the TV rather than in front of potential customers and new Dealers. Success in this business eluded them because of lack of effort and lack of commitment to  achieving their goals.

I still feel the same about what it takes to succeed in this business. Natural talent is great, but determination and commitment are what makes things happen. Set you goals and achieve them with AMSOIL!

FROM THE PRESIDENT'S DESK...AUGUST 2006

As I write this, the situation in the Middle East continues to worsen. We are once again being told to expect the price of oil to increase and it is already at an all time high. Every world event affects the price of oil, whether it be warfare, severe weather, or terrorist attacks. The fact is, even the threat of any of these things can cause oil prices to spike.

The obvious reason for this is that nearly everything we use in our day-to-day lives is affected by the cost of oil in one way or another. Oil is used for energy, for fuel, for raw materials in manufacturing, and for many, many other uses we have come to depend on to improve our lives. Our President said it best when he said America is addicted to oil. The truth is, we simply cannot get along without it.

Our challenge as a nation and as consumers is to conserve oil in every way we can. That's where AMSOIL Dealers like you are helping.

Every-25,000 mile oil change you sell saves up to seven additional oil changes for those customers who change oil every 3,000 miles. That's about thirty-five quarts of oil that don't have to be refined or disposed of. Multiply those thirty-five quarts by the total number of people we switch to AMSOIL and we start to make a small dent in our oil consumption.

But what if everyone used AMSOIL Synthetic Lubricants? Can you imagine the impact it would have? Using AMSOIL Synthetic Motor Oil alone would represent a tremendous reduction of wasted resources.

Now factor in the extended service life of our other lubricants such as gear lubes and transmission fluids, and the added fuel economy all our synthetic lubricants inherently deliver, and the impact would be enormous. But in reality, we most likely won't turn every motorist into an AMSOIL customer. On the other hand, we have not even scratched the surface of our sales potential. There is tremendous opportunity for growth in this market and we have the products to make it happen. Take advantage of this opportunity and you not only build a solid, profitable business, but you also help reduce the waste of millions upon millions of gallons of motor oil and gasoline. To my way of thinking, there is no better time to be an AMSOIL Dealer. I hope you feel the same way.

Our business not only helps our customers make their equipment last longer and operate better, it saves them money and helps reduce the waste associated with unnecessary oil changes. It's a win-win situation, with everyone benefiting in one way or another.

You should be proud of your role in helping your customers and our nation. I know I am!

On another subject, these are exciting times at AMSOIL. We are growing at an unprecedented rate, and I do not exaggerate. Sales and new Dealer registrations are at an all time high. But we are not resting on our laurels. As you can see from reading your Action News, every month we introduce new products, new literature and sales promotion items, and provide information to help your business. We also recognize our new Direct Dealers and Direct Jobbers in this magazine. Look at the number of new Directs in this Action News!

Right now, we are planning our Fall Regional Dealer Meetings, and the introduction of many more new and improved products.

There is a flyer in this Action News informing you about our "AMSOIL Revolution" Sales Meeting coming this fall. I won't repeat all the details here in this message, but I want to encourage every active Dealer or anyone wishing to become an active Dealer to take advantage of these learning opportunities. They are designed to help you. The information you receive at any one of these meetings could have a significant impact on your business. Become a part of "The AMSOIL Revolution" and be sure to attend one of these meetings!

You will continue to see many new products introduced in the months ahead. All are designed to keep you ahead of the competition and provide you with increased opportunity to build your businesses. As found in this magazine we will also occasionally feature new products from our partners, WIX and Donaldson, as they become available. We are also improving some of our existing products and are dressing up the packaging on others. As a company, we never stand still. We are always moving ahead with new ideas and new concepts.

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

From The President's Desk...July 2006

Last month, you read about a documentary that was made about my life and the history of AMSOIL. The AMSOIL University attendees were treated to dinner and a premiere showing of the movie. I invited special guests like Bobby Unser, who shared memories with me on stage, and many of my friends and family. It was a very special occasion for me, and judging from the many cards and notes of appreciation I have received, for most of my guests.

Since then, the movie was run on local television following the Indy 500 and again a week later. It had a very positive impact on local viewers, many of whom knew AMSOIL was a local lubricant manufacturer, but didn't really understand how our company changed the lubrication industry and the extent that we remain a technological leader today. Judging from the comments we've been getting, many people who were on the fence as far as using AMSOIL products now say they're making the switch.

The movie event was also covered in the local newspaper. In their feature story, Dennis Bachelder, Senior Engineer in oil licensing at the American Petroleum Institute, was interviewed regarding AMSOIL lubricants. He said that AMSOIL uses a synthetic base stock for its oil, while some oil manufacturers use highly refined oil. Bachelder said AMSOIL uses "very high quality base stocks." He is right on!

People in the industry know AMSOIL for our high quality standards which set us apart from other oil manufacturers. And the companies that sell the chemicals and additives that go into making lubricants are especially aware of our standards, because we are always pushing them to make better and better products. If they have a product that outperforms all others, they know they have a customer in AMSOIL. We want only superior ingredients for our products and that is not advertising hype. It is the truth, and our
suppliers know it.

A sales representative for a very large additive company told me, "It's a known fact in the industry that AMSOIL uses only the best quality materials in manufacturing its lubricants." What an excellent reputation to have! We're proud of it, as should be every AMSOIL Dealer.

There is no better example of AMSOIL's high quality standards than our two motorcycle oils. I have referenced these oils in previous messages and they have been featured in numerous Action New articles. The reason we mention them frequently is two-fold: first is the fact that the motorcycle oil market is huge and represents an excellent opportunity for AMSOIL Dealers, and second is the fact that we went to considerable expense in testing our oils against virtually every major motorcycle oil on the market and published the results in our Motorcycle White Paper (G-2156) for the world to see.

This extensive study was directed by Executive Vice President, Alan Amatuzio. The reaction to it has been outstanding. Dealers have been using it to help secure accounts in the power sports market, including motorcycle and power sports dealers, repair shops and auto parts stores. This is an area where AMSOIL is well known and well thought of due to our racing sponsorships and our reputation for manufacturing high performance lubricants and filters. It is a market that every AMSOIL Dealer should be taking advantage of. And today it is even better, because we now offer Ea Oil and Air Filters for motorcycles, as introduced in this Action News.

It's interesting how quiet the competition has been since we published this white paper. What can they say? The tests speak for themselves.

Getting back to the documentary, I honestly think it is an excellent recruiting tool for you and your Dealers. It speaks very well of synthetic lubrication in general and of AMSOIL Synthetic Lubricants in particular. It
tells a story. A story of how I came to believe in synthetic lubrication for applications other than the jet aircraft I flew. It tells how one small company in Superior, Wisconsin changed a giant industry with a good idea whose time had come . . . synthetic lubricants for the average motorist. Even though the odds were against us, our excellent products and our outstanding Dealer network made us a success.

Consider using this film to bring in new Dealers and sell not only AMSOIL products, but the AMSOIL opportunity. So far, it has had very good reviews and I think it can help you build your business.

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

From The President's Desk...June 2006

On Friday, November 18, 2005 I was invited to an upper management meeting in our board room only to unexpectedly find a group of family and friends there waiting for me. Needless to say, I was surprised and wondered what was going on. It soon was announced that the reason everyone was gathered there was to view a movie that my family had taken the initiative to have produced. The movie was about me, and was titled "An American Success Story." It included interviews with many of my old friends, some of which were there in the room waiting to see it with me for the first time. All had kept it a closely guarded secret until then, so this all came as a complete surprise to me.

Well, I was really touched by this, and when I watched the movie, I was amazed that they got everything so right. It's wonderful to hear the recollections of other people about events that took place decades ago and have them told just as you remember them. As the movie unfolded, I couldn't help myself in saying over and over under my breath, "that's true," as each story or incident was told and described by someone being interviewed, because it all was!

From people who had grown up with me on Raleigh Street in West Duluth to people who had flown with me in the Air Force and Air National Guard, all had recollections and stories to tell. Some were humorous, some deadly serious. I had not seen many of these people for years, but the stories they told brought back the past like it was yesterday.

The movie told of my early interest and experimentation with synthetic oil and how I actually tried some synthetic jet oil in an automobile. Eventually, I contracted with a major chemical company to produce a new oil to my specifications, had it tested, and went on to build a company around the new concept of synthetic oil for automotive applications.

It told of the challenges and the setbacks I had as I tried to sell a synthetic oil that cost three to four times more than the motor oils of the day, and how I finally settled on multi-level marketing as the way to put my products on the map. It told of the lawsuits that were filed against AMSOIL because of my company name and my logo colors. It also told how we beat these lawsuits. It included interviews with some of the people who were there as AMSOIL went from my home's garage to where it is today. It includes insights from my children, who know first-hand what I went through to build this company.

All in all, the movie was very professionally done and true to the events in my life. I must say that I am humbled and honored that my family and friends would do this. I know it was an expression of love and respect, and I appreciate it more than I can say.

I decided to surprise this year's AMSOIL University class and host a dinner for them with this movie being the main attraction. On May 24, the entire '06 AMSOIL U graduating class, some of my close friends and associates, many members of my extended family, a number of celebrities, including Bobby Unser, some of the managers here at AMSOIL INC., a group numbering over 400 strong, enjoyed fellowship and good food together prior to the showing of this movie. Their reaction was personally very gratifying. When the movie ended, I was given a standing ovation. It capped off a wonderful evening for me and, I believe, for everyone in attendance.

You may be interested in seeing this movie for yourself. I hope you do, not for self-serving reasons, but because as AMSOIL businesspeople, you should know how this company got started, who started it and why. Every American success story is unique and interesting. I enjoy stories about successful people. I feel I learn something from them and I usually do. If people take anything positive away from my story, I want them to realize that anyone can become as successful as they are determined to be. All it takes is hard work and time out from the TV.

It's like the person watching Arnold Palmer playing golf and saying, "I'd give my life to play like that." and the fellow next to him commenting, "He did." That's the kind of commitment and sacrifice it takes. Is it worth the sacrifice? You better believe it!

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

AN AMERICAN SUCCESS STORY

Insight Into the Life of AMSOIL Founder

Anyone who has ever met AMSOIL Founder and President Albert "A.J." Amatuzio has felt the charismatic touch of his personality. But not everyone knows the roots of that charisma and the determination that enabled him to create an entire industry.

For the first time, AMSOIL presents "Albert J. Amatuzio: An American Success Story," a video that details the events that shaped the man who created the world's first API qualified synthetic motor oil, set the lubricant industry on its heels and has become a legend.

Amatuzio's story is truly the stuff of the American Dream. He is a second generation American-Italian, who grew up in a diversely-immigrant neighborhood in northern Minnesota.

From the first minutes of the video, you see and feel the fabric of Amatuzio's early years; the strength of a family making its way in a new world. The story of those early years brings understanding of the personality that has faced every challenge and refused to accept defeat.

Amatuzio's military career further shows his determination to succeed. Here you see how the loyalty factor of his early years deepens into the fabric of his personality. You hear and see his friends, many from the neighborhood, who show you "Ammo," the nickname given to him by the squadron he flew with. To them, "Ammo" was a man among men. He challenged them to do and be their very best.

"Ammo" kept a cool head in a crisis. His ability to think under pressure saved his own life during a badweather flight. Another time, he saved the life of a fellow pilot. He was trusted and respected by his men. His competitive spirit pushed the squadron to seek and win a flying contest for the highest honor bestowed on American pilots.

The video examines the lean years as Amatuzio pushed to develop his revolutionary motor oil. Step by step you see how he took his new product from an idea to a reality even as he faced opposition from all sides. As Amatuzio faced serious setbacks and dwindling financial reserves, he also needed a way to market his potential gold mine.

Always a man open to innovative ideas, Amatuzio learned from a friend about her experience with MLM companies. He considered her proposal, and three days later brought Shirley Green onboard to help develop the AMSOIL Marketing Plan. A short, clear lesson in synthetic lubrication completes the movie that promises to be a valuable sales tool for Dealers throughout the AMSOIL Dealer network.

The 86-minute video gives viewers a glimpse into the man whose focus and determination created the synthetic motor oil industry, the depth of his commitment to quality and the benefits and science behind the technology of synthetic lubrication.

From The President's Desk...May 2006

Whenever you have a large number of people communicating with one another like we have at AMSOIL, it's natural that there will be rumors started and circulated. If you were to believe past rumors, I would have been dead and buried many times during the past thirty years. I would have sold the company dozens of times to any number of large oil companies, I would have abandoned Multi-Level Marketing years ago and gone factory-direct.

It seems that when we make a policy or program change here at AMSOIL, the rumors of doom begin circulating again. Every once in a while, I feel I need to put those concerns to rest for the moment, although they are sure to come up again later. Right now is one of those times, because we made a decision recently that, on the face of it, may generate more rumors. I want to put them to rest right here. As I like to say, you're going to get it right from the horse's mouth!

The decade of the '90s was a period of significant growth for this company. In 1994, we decided to form a group of Direct Jobbers to be a sounding board for our new ideas and programs we felt would help us maximize our growth and gain a larger share of the market. During that period, we were seeing more and more competitive synthetic lubricants introduced. We felt we needed a direct link to our Dealer network to address Dealer-specific concerns and issues, thus our Leadership Council was formed. It was a good idea and it worked well, as our continued growth attests.

But as I have said before, that was then and this is now. We have now reached a stable period in our policy and program development. And with the addition of our regional sales managers, regional sales meetings and our increased channels of communication, including email and electronic surveys, we are better prepared than ever to assess the needs of our Dealers and to receive an even broader range of input.

That being said, we have decided that the mission of the Leadership Council has been fulfilled and are very grateful for the Council members' input over the years. The current council members at the time our decision was made were: Regency Platinum Direct Jobbers George and Shirley Douglas, Gerry and Patricia Reid, Thomas and Sheila Shalin; Regency Gold Direct Jobbers Pat and Donna Grady, Carl and Kimberlee McNamee and Regency Silver Direct Jobbers Ray and Karen Pesko.

I want everyone to know that I appreciate the service, dedication and loyalty these Direct Jobbers have shown to AMSOIL. They have contributed to our success and the success of our Dealers during these past twelve years.

But with time comes change. Some people have a difficult time accepting change, but in this business, it is the name of the game. We literally changed the world by introducing the first synthetic motor oil. We continued to change the lubrication market by being first with many new products and concepts. With these changes came progress.

I see our reduced need for a formal Leadership Council as progress, as well. I don't want our Dealers to read anything more into our decision other than what I have just explained to you here. It's simply a result of our improved communications today compared to twelve years ago.

In the meantime, don't believe crazy rumors. We will never turn our back on the tens of thousands of Dealers who helped make AMSOIL such a success. We would be crazy to do that. As I have said many, many times before, our future is tied to MLM. That's why, when I was offered millions for this company many years ago, I turned it down. That's why, when Texaco visited me with an offer to buy me out, I declined. That's why, when we developed the Retail-on-the-Shelf Sales Program and the Commercial Sales Program, we did it within the realm of MLM, so that all our Dealers could profit from them. And that's why we structured the Retail Catalog Program and internet ordering around our Dealers, so that a Dealer would get credit for every catalog and internet sale. Does that sound like AMSOIL is turning its back on MLM?

I get a few offers to buy me out every year, but I will never sell out our Dealers. I have made too many friends in this business, and I never hurt my friends. The next generation of management, Alan Amatuzio and Dean Alexander, feel the same way as I do. Rest assured, your future is safe and secure with AMSOIL. I have promised you all that we will remain loyal to you and our MLM roots. I have and will continue to keep my word. And I appreciate your continued friendship and loyalty, as well.

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

FROM THE PRESIDENT'S DESK...APRIL 2006

The lubrication industry has seen major changes since I introduced the first synthetic motor oil back in 1972, but the one thing that has not changed is the quality and performance engineered into all AMSOIL lubricants.

My original synthetic motor oil (AMO) was so much better than the competition there was simply no comparison. It would have been like comparing a high performance race car to a motor scooter. The oils of the day were being produced as cheaply as possible and there was little or no difference in the performance of the various brands.

It's no accident that automotive oil drain intervals were pegged at 2,000 miles back then. That was an accurate reflection of the quality of the motor oils being used then. Running longer between changes with those oils would have resulted in sludge and deposit buildup that could shorten the life of an engine. That's why my oil's 25,000-mile or one-year drain interval recommendation shook up the industry and caused so much controversy. Running any motor oil that long was unheard of!

But that was then and this is now. Much has changed since then, and I have been told that AMSOIL synthetic lubricants drove much of that change. Today's motor oils are unquestionably better than they were in the '70s, but then, so are AMSOIL Motor Oils. Our products continue to outperform the competition. We test against them all the time to prove it and we publish the results. How many other oil companies do you see publishing tests that show they beat our product's performance?

The one thing I have always insisted on is that we promote our products with claims we can back up. Early on, some Dealers made wild claims about our products to help them sell. That has never been the way we do business. Our products have always been good enough to let the facts speak for themselves. We have been complimented many times over the years by our suppliers and our competitors about the honest and realistic performance claims we make for our products. And we are always able to back up what we say.

A good example of the way we establish our product's superiority are the bank of tests we ran on our motorcycle oils comparing them to the competition's oils. We published the results in our Motorcycle White Paper (G-2156) which is available to you (and our competition) from our Literature Department. I'm sure this white paper is not news to most of you as we have featured it in recent Action News articles, but if you have not actually looked it over yet, you might be in for a surprise when you do.

First, you will be surprised at the number of performance tests we ran and how well our two motorcycle oils scored in those tests. But you also may be surprised that we published the results of the tests where our oils were not the top performers. In other words, the tests were run and the results published regardless of how our oils fared. We let the chips fall where they may. Granted, we were only beaten in a few tests and not by much, but nonetheless, we published the honest results as we always do.

The superior performance AMSOIL Synthetic Lubricants provide is no accident. Believe me, it takes a great deal of knowledge and expertise to engineer oil that consistently outperforms all the others, often by a wide margin. We staff a complete technical services department and chemical laboratory that are second to none. Our staff is trained and educated in modern lubrication technology, enabling us to consistently stay on the cutting edge with our lubricants.

Our people know I will not allow compromising the quality of our products. They know if there is a base stock or additive out there that will improve the performance of our lubricants, I want to know about it and I want to test it for possible use in our formulations. That's how we have always been able to compete against the major oil companies . . . by producing better lubricants. And that's how we will continue to serve our Dealers . . . by providing superior products to build their businesses.

On another note, I was very pleased to learn that we filled the enrollment of AMSOIL University earlier this year than at any time in the past. That shows the kind of commitment from our Dealers that we all appreciate and applaud here at AMSOIL headquarters. Your success is our success, and we will continue to do everything in our power to help you succeed. That's what AMSOIL "U" is all about. It's designed to help Dealers succeed.

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

FROM THE PRESIDENT'S DESK...March 2006

We have all heard the good news, bad new stories. The question is always asked, "What do you want first, the good news or the bad news?" I'm going to begin with the good news in this message, and it is very good news.

At this writing, our sales for the year compared to last year are up significantly. January '06 was one of our best months ever and February is on track to equal or beat it. What this means is that AMSOIL lubricants are now recognized and accepted as the excellent products they really are by more consumers than ever. Our market share is growing every day, and while it is relatively small by comparison to the total lubrication market, we are talking about a huge market. Growing it by even one percent is very significant for a company our size, and we are growing every day!

This is excellent news for all of us because we are a team. AMSOIL INC. can only grow and prosper if our Dealers are also growing. Judging from the commission checks I saw mailed last month, this is also going to be a very good year for our Dealers.

I believe that after all these years the lubrication market has finally come to us, rather than us conforming to it. That's what happens when a revolutionary new concept is introduced. Change comes slowly. It takes time for people to change the way they have always done things. But if the products and concepts are good enough and represent real progress, they will eventually be accepted.

Our products were synthetic lubricants and our new concept was improving performance and extending the service life of lubricants. Look how we have changed our industry since then. Synthetic lubrication is now mainstream and extended drain intervals are being embraced by lubrication and equipment manufacturers alike. Some would say what we've accomplished together is unbelievable. It is certainly undeniable!

And today, in the same way we revolutionized the lubrication marketplace, we have the potential of changing the automotive filtration market. Our new Ea Air and Oil Filters deliver the same kind of superior performance and long life capabilities as our synthetic oils did many years ago. They are so much better than the competition, there is no comparison.

Include Ea Air and Oil Filters in every motor oil sale in the future. They should be an easy add-on sale with the potential for significantly increasing your earnings. They should be an important part of your overall sales plan. You can learn more about our Ea Filters at the Filter Marketing Tour Meetings being held across the country in the months ahead. The more you learn, the more you'll understand why they are so important to your business.

And now for the bad news. As you are well aware, due to the increases we were experiencing in just about everything we purchased to manufacture our products, it was necessary for us to raise prices on our lubricants this past February. It was our hope that costs would level off and stabilize, but that has not been the case.

The fact is that raw material prices have continued to spiral upward in just the past few months beyond anything I have experienced since starting this business. These increases are not just affecting AMSOIL, but are happening industry-wide. There are many reasons for this, but the primary reason is that raw materials for making lubricants are in short supply right now. Some are even being allocated, and this has been a topic of conversation and concern among all the oil companies large and small.

All the major oil companies are increasing their prices on motor oil. Many have already raised prices more than once and many have announced they will. I saw a quart of petroleum motor oil on the shelf the other day with a price of $2.50. That is the highest I have seen petroleum sold for and it is the direction prices are going.

I tell you this not to cry wolf or insinuate that more price increases are imminent, but to keep you informed as to what's happening in our industry. But if this trend continues, we will once again be faced with that possibility.

In the meantime, back to the good news, and that is that our lubricants provide longer service life and better performance than the competition, which brings their true cost down compared to the oils requiring more frequent changes. Our products have never been the "low priced spread", but by delivering more, they continue to offer real value and are worth the price!

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

FROM THE PRESIDENT'S DESK...FEBRUARY 2006

What do you hope to accomplish in 2006 with your AMSOIL business? Do you have a goal for this year? Do you have a plan to accomplish your goal? Many Dealers would probably answer both those questions with "no" if they were honest with themselves. Their business just takes its course month after month without real direction or a planned destination. Then, at the end of the year, they wonder why their businesses haven't done better.

It's impossible to accomplish your objectives in business unless you actually have objectives. It's easy to sit back at year's end and list what you wished you had accomplished in the previous twelve months, but that's not the time to make the list. The time to establish your goals for the year is at the beginning of the year, like right now!

I'm here to tell you from personal experience that success doesn't just happen. It's not automatic when you start a new business. More new businesses fail than succeed. It takes a good business plan, establishing goals, and a lot of hard work to make those goals become a reality.

Your goals should be realistic and achievable. You should put them in writing and refer to them often. The reality is that most people who set realistic, achievable goals work harder and smarter because they have established a direction to focus on. Having goals gives us the incentive to go the extra mile in everything we do, whether it's increasing our sales, sponsoring new Dealers, establishing new retail and commercial accounts, or becoming a Direct Dealer or Direct Jobber.

It's also important to measure your success as the year progresses. Again, when we keep score, we strive harder to meet our personal expectations.

There is one goal every Dealer who is serious about his or her business should focus on, and that is to take advantage of every educational opportunity AMSOIL makes available to you. That would not only include the more obvious training opportunity like attending AMSOIL University. It also includes attending Regional Sales Meetings and the upcoming Filter Marketing Tour Meetings.

AMSOIL sales literature and the Action News are also excellent sources of important product and marketing information. Not only does our literature help your prospects make buying decisions, it also helps educates you about the product benefits you should be using to market your products.

I am not aware of any other company that provides the volume and quality of sales and training literature that AMSOIL provides its Dealers. We staff a Technical Service Department and a Sales Promotion Department who work hand in hand to give you accurate, timely information about our products and lubrication in general. Our literature is reviewed and revised every time we re-print it to make certain it is up to date. It's all there for your benefit. But you need to use it to get any benefit from it!

The Filter Marketing Tour Meetings I mentioned are now in progress. They are presented by our sales department and hosted by Filtration Consultant, Karl Dedolph. Karl is a filtration and filter marketing expert. He is imminently qualified to provide you with the technical information and marketing expertise necessary to make our new Ea Filter line a very profitable addition to your AMSOIL Business.

You need to learn as much as possible about these new air and oil filters as quickly as you can. They are certain to become one of our biggest sellers, and these meetings will tell you why and how to successfully market them. I am personally very excited about the superior performance of both Ea Air Filters and Ea Oil Filters and how they have revolutionized automotive filtration. The more you learn about them, the more you will realize the possible effect they will have on your business. You now have the ultimate in synthetic lubricants paired with the ultimate oil and air filters. The best just got better! Make it a point to register for and attend one of these Filter Marketing Tour Meetings. They will help you achieve your goals!

I also want to take this opportunity to thank all the Dealers, friends and AMSOIL employees for the many wonderful cards and letters I received over the Holidays. I want you all to know that I read and appreciated every one of them. To answer them personally would be a monumental effort so I hope you will accept my thanks here in this message. Also, I appreciate the excellent work done by our talented and dedicated AMSOIL employees. They are here to serve you, our Dealers, and I'm certain you will agree, they do a marvelous job!

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

FROM THE PRESIDENT'S DESK...January 2006

Happy New Year! As we begin the new year, I want to celebrate our success during the past year in this message.

2005 was a banner year for AMSOIL and our Dealers. It included the introduction of many excellent new products, a few improvements to existing products, some mutually advantageous new business relationships with new suppliers, and the formation of a new Regional Sales Manager team that began holding regional sales meetings for our Dealers and their prospects.

It also saw the entry of Mobil into the automotive extended oil drain market with three new oils that come very close to copying our drain recommendations. While some were concerned about this new competition, I was not. As a matter of fact, I found the fact that a huge company like Exxon Mobil was copying our concept of extending automotive drain intervals to be flattering. Once again, AMSOIL was the first and still leads the way!

This new competition has not hurt our sales one bit. On the contrary, Mobil has added credibility to what we've been doing and saying for over thirty years. It shows we've been right all along, despite the numerous industry "experts" who have been openly critical of our performance claims over the years. You don't hear much from those people today! If they don't accept the superior performance of synthetic lubricants today, they must have blinders on.

Let's review the new products we've introduced during the past year, starting with our totally reformulated Synthetic Marine Gear Lube. This product was improved to meet the specifications of basically all outboard and sterndrive manufacturers. It provides excep-tional lubrication and protection against wear, even with up to 10 percent water contamination!

We also introduced a new additive, Slip-Lock, that eliminates gear housing chatter in differentials. This special purpose additive quiets the noise made by some differentials when they turn sharply or are locking. Also added to our product line were two new synthetic manual transmission lubes that fill specific needs in both manual synchromesh transmissions and transaxles.

Our new Motorcycle Oils have taken the industry by storm and are now some of our best sellers. We recently published a motorcycle oil white paper (G-2156) that reports on the results of a wide range of tests on twenty-eight motorcycle oils, including our oils. The report is a no-holds-barred look at which oils performed best (and worst) in a battery of tests. We let the chips fall where they may and reported every test result whether or not our products got the most favorable results.

We're confident readers will recognize the overall superiority of our oils. As AMSOIL Dealers, I know you will find this white paper very interesting!

Also new for 2005 are our two new synthetic 4-stroke marine oils. The marine market is huge and it certainly is no secret that 4-stroke marine outboards are rapidly growing in popularity. These new lubricants expand your opportunity into the marine markets, allowing you to sell high performance, shear stable synthetic lubricants that are specifically formulated for 4-stroke marine applications.

Our most recent new product introductions were the Ea Air Filters and Ea Oil Filters. These high performance filters are the perfect complement to your oil sales. Our new Ea Air Filters have a guaranteed 4-year or 100,000-mile service life. Our new Ea Oil Filters are guaranteed for 25,000 miles. Both are highly effective, long life products that deliver superior performance over any other automotive oil or air filters. You now have the best oils and the best filters to offer your customers, and that's a fact!

2005 saw AMSOIL being mentioned in more magazines, having a greater presence at more race tracks, and being promoted with more advertising than ever before. We are recognized as being innovators in the lubrication and filtration marketplace. We earned that reputation by being first with many new products and concepts over the years, many of which were considered radical when we introduced them but are now mainstream.

Yes, the AMSOIL opportunity became even better in 2005. And it will continue to get better in the years ahead. Finally, I don't enjoy having to tell you about the need to increase our prices, but once again I have no choice. Rather than go into detail about all the price increases we have been experiencing lately, let me just say quite honestly, we would never raise our prices unless it was absolutely necessary. For our sake and ultimately for yours, we have no choice. Of course you know that higher prices for our products result in increased earnings for you. And your products are still great values at the new prices.

A. J. "Al" Amatuzio
President and CEO, AMSOIL INC.

FROM THE PRESIDENT'S DESK...October 2006

This has been a very busy time here at the AMSOIL headquarters. With important new products being launched, regional sales meetings being planned, and sales continuing to set new records every month, we all have plenty to keep us busy.

As you can see by the cover of this Action News, our new Ea Air Filters are now available. These filters set new quality and performance standards for automotive and light truck air filtration. Utilizing space age nanofiber technology, there's virtually nothing on the market today that compares with them.

It doesn't take much imagination to recognize the excellence of an air filter that guarantees service for 4 -years or 100,000 miles. You know it has to be a very special filter! But that is just the tip of the iceberg. Not only do these filters promise extended service life, they also outperform all other automotive air filters. In independent tests, they remove up to 50% more dirt, dust and submicron particles than paper filters, foam filters, or gauze filters while allowing more unrestricted air flow.

Combine these performance features with the fact that Ea Air Filters can be cleaned and re-cleaned without adversely affecting their performance and you have an air filter that is second to none.

The cleanability of Ea Air Filters was demonstrated in tests at an independent testing facility and after four cleanings they remained better than 99% efficient. That was after being subjected to five times the normal basesline contamination and four cleanings.

To quote the report, "Test results are certified and presented, which gives element pressure drop, efficiency, and weight data. There were no visible manufacturing
flaws and no dust leakage paths were observed during dust loading. The results given show consistent dust loading and good cleanability after each dust loading of 4 intervals."

In other words, even when loaded repeatedly with five times the baseline contamination, our new Ea Air Filters continued to filter extremely well after four cleanings and flowed at 99% efficiency after the equivalent of 120,000 miles between cleanings. Considering cleaning is recommended at intervals of 25,000 miles or one year, these filters are definitely made to last at least 100,000 miles. And cleaning is quick and easy by vacuuming or using compressed air. No water, no solvents, no oiling.

Our new Ea Air Filters represent a breakthrough in automotive air filtration and that is no exaggeration. We have been working on them and testing them for over two years. The space age nanofiber technology has been proven to provide superior performance in military and industrial applications. We bring you this amazing technology in a filter built to our exact specifications by a major air filter manufacturer.

Ea Air Filters are a perfect complement to AMSOIL synthetic motor oils. Like our oils, they provide superior performance and extended service life. In fact, they will be the last air filter your customers will need if they put 100,000 miles or less on their vehicles or keep them for less than four years.

Ea Air Filters are an AMSOIL exclusive and are only available from AMSOIL Dealers. There are no other automotive air filters that use the superior nanofiber filtration media. What this means is that you won't find these filters in large discount stores. There are no filters sold in any store that even come close to the superior performance of Ea Air Filters.

I think you can see that we have hit a home run with this new product. These new filters represent the same quantum leap in performance that our original synthetic motor oil did in 1972. They should be an easy sell to your existing oil customers, and could open doors for you in calling on new customers.

This is just the beginning of exciting things to come from AMSOIL. Expect to see more announcements in the near future, as we continue to provide you with outstanding new products to enhance your income opportunities as AMSOIL Dealers. As always, they'll be the very best!

A.J. "Al" Amatuzio
President and CEO, AMSOIL INC.

From the President's Desk...

From the day I blended my first quart of synthetic motor oil, my goal has been to produce products of the highest quality that deliver superior performance. That was the only way for me to succeed. My oils cost consumers three to four times more than petroleum, so they had to be good enough to justify the price,
and they always were.

AMSOIL's commitment to producing and marketing high quality products has resulted in our continuing growth over these past thirty-plus years in business. It is even more important today, as competition has increased considerably in recent years. There are now numerous synthetic motor oils available to consumers. We are no longer unique in being the only producers of synthetic lubricants, but we remain unique in the superior performance of the oils we make.

We also demand the highest quality and performance from the products we market but do not actually manufacture. For those, we search out the very best suppliers who are able to meet our standards and we partner with them to market their products alongside ours. Such is the case with the Donaldson Company, makers of the best filters available anywhere. Donaldson produces filters for many applications. They have been in this business for many years and have grown to a $1.5 billion company employing about 10,000 people. Donaldson markets filters worldwide, including oil filters, air filters, fuel filters, hydraulic filters, and coolant filters. They hold more filtration patents for land transportation, aviation, and industry than all other filter companies combined.

I have been told that the Donaldson Company is very selective in who they partner with, just as we are. They are suppliers to Ford Motor Company, General Motors, Caterpillar, John Deere, Lockheed Martin, the U.S. Department of Defense, and now AMSOIL INC.

I first met with the top executives of the Donaldson Company here at our Superior, Wisconsin headquarters. We had arranged a plant tour and conference for them so we could all get acquainted and exchange ideas. I joined my son, Alan Amatuzio, Dean Alexander, and some of our other key people here at AMSOIL for these discussions.

What started with this meeting ultimately resulted in an agreement that represented a first for the Donaldson Company. They had partnered with a number of OEM's before, but AMSOIL would be the first world class lubricant company they shared their technology and product line with, and the first company they would private label their PowerCore Filters for. There will be more exciting news coming from this partnership in future months.

Included in this Action News is the latest AMSOIL/Donaldson Filtration Products brochure (G-2111). In it you will find information on many of the excellent Donaldson products. Use them to expand your business into new markets. They are the perfect compliment to the AMSOIL Synthetic Lubricants you now market.

AMSOIL Lubricants and Donaldson Air and Oil Filters combine to provide the very best long term engine and equipment protection money can buy. Both provide extended service life and superior performance.

And the best news is they are only available together from AMSOIL Dealers and their accounts. To date, we have set sales records for certain of the Donaldson filters. For instance, AMSOIL Dealers today sell more of the ELF 7349 (now the EAO-80) oil filters for Dodge/Cummins 5.9 liter diesel applications than any other company in the world. If you're not marketing these fine filters, you are missing a great opportunity.

Our purchasing department recently visited Donaldson's headquarters and were pleased to see the AMSOIL name positioned with their other worldwide partners in the stockholders viewing room. They also noticed that the Action News was among other publications available for their employees in their lunch room.

This is sure to be a great partnership, and as I mentioned earlier, more exciting things are in the wind from AMSOIL that will draw on the technical expertise of the Donaldson Company. Look for more news from AMSOIL very soon.

A.J. "Al" Amatuzio
President and CEO, AMSOIL INC.

From the President's Desk...October 2004

These have been very busy times for all of us here at the AMSOIL Headquarters.

Since my last message, we hosted a Direct Jobber Convention and a Leadership Council meeting in San Diego, California. It was one of our best D.J. Conventions ever, with over two hundred thirty attending. We took this opportunity to introduce some of the new AMSOIL employees who were with us at the convention and informed the attendees about a few who didn't make the trip to California.

The theme of the Convention was "Room to Grow." Of great interest to all our Direct Jobbers was the 371,363 square foot facility we purchased this summer. Named the "AMSOIL Center," this new addition to our company will enable us to continue to grow unhindered by space considerations for the foreseeable future. As we keep experiencing record sales each month, the opportunity to purchase such a facility couldn't have come at a better time. It definitely gives us "Room to Grow!"

Because of the great interest this purchase has generated, I recently invited every AMSOIL employee here in Superior to spend part of their day at the new AMSOIL Center to see for themselves what a marvelous facility it is. We had a catered lunch and employees got to walk through the entire building.

Our people were very impressed with the incredible amount of space inside this building. It's one thing to see this facility from the outside, but when you get inside, its size is really impressive. I wanted to share our excitement about the new AMSOIL Center with our people, and the best way to do that was to let them see it first hand. I feel it is important that they are enthusiastic about the future of the company they work for. That enthusiasm will be evident in their daily contact with our Dealers and the people they know in our community.

As you can see by the cover of this Action News, this has also been a year for introducing many new and improved products. From lubricants to filters, we have been adding products to expand our opportunities in this business. And as impressive as this year has been, 2005 promises even more excellent new product introductions. We have many products in development now and more on the way. Our focus is to position AMSOIL Dealers as the source of high quality, innovative products that outperform the competition and deliver value to our customers.

An example of that would be our Severe Gear Lubricants. A friend of mine who is a Dealer questioned the need for another Gear Lube, thinking that once you put gear lube in a differential, you really didn't have to worry about it anymore. He read the product introduction in Action News indicating that SUVs are harder on gear lubes than other rear end applications, but he had been driving SUVs for years with no bad experience. What was the problem?

But when his vehicle was in for service, the mechanic told him the lube in his differential was black and smelled like it was burning. That was not good. He thought to himself, AMSOIL actually did know what they were talking about. There was a need for a better gear lube. He had them install Severe Gear 75W-140 knowing it was the right lube for his SUV.

My point is that AMSOIL already made a number of excellent gear lubes, but there was a need for something better. As in the past, we were going to be the company to make that something better. Alan Amatuzio and Dean Alexander worked with our chemists to develop this new generation of gear lubricants. Alan named them "Severe Gear" because they were developed for severe service applications. Look for more innovative products from us in the future.

Everyone at AMSOIL is dedicated to serving you, our Dealers and Preferred Customers. That's what we're here for. Whether it be serving you by developing new high quality products or handling your telephone orders or sending your commission checks to you in a timely manner or producing literature to help you sell, this entire company is always at your service.

Another year is almost over. Without hesitation, I can say that it has been a good year for AMSOIL, our Dealers and me. As I write this, Thanksgiving is only a week away. And this year, as in so many in the past, I have a lot to be thankful for. Especially for all of you. I want to wish you the very best during the coming holidays and throughout 2005.

A.J. "Al" Amatuzio
President and CEO, AMSOIL INC.