Dear Friends:

In May of 2002, American Standard launched a set of values designed to guide the way we do business. You can read about those values in Our Company Values on our Web site, but here's one that I'd like to point out right now: "We Operate With Integrity."

What does this value have to do with the environment?

This value tells us to do the right things — and that extends to leadership in protecting the environment.

We all share this planet. It simply doesn't make sense —nor does it make for good business —to foul the air we all breathe or the water we all drink.

Our environmental policy commits us to "design products, processes and operating facilities worldwide that are environmentally sound, prevent pollution, conserve resources and energy, minimize the use of hazardous materials and reduce waste."

We believe that good environmental stewardship and sound business practices can go hand-in-hand. And that reminds me of another one of our values: We Deliver On Our Promises.

Take a look at our products and you'll find energy efficient air conditioning units, bath and kitchen products that deliver performance while conserving water, and vehicle control products that increase fuel economy. Making Earth-friendly products is an important part of what we do.

We are also using Six Sigma techniques to ensure that we operate efficiently — with less waste. For example, we're now recapturing materials that once would have escaped into the air, water or ground. This not only helps us preserve the environment, it returns these materials to productive manufacturing use.

These are just the first steps of a long journey. We are constantly looking for ways to improve our products and our operations.

Please read the information we've presented here. I think you'll find that American Standard Companies is a business that's striving to be a responsible citizen in our communities where we work, and a responsible resident of the planet upon which we all live.

FRED POSES
Chairman & CEO