Accounting

INTEROFFICE MEMORANDUM

TO: Joe Jones, Supervisor

FROM:

SUBJECT: US Securities and Exchange Commission internal investigation

DATE: June 4, 2010

The company has received the request from the US Securities and Exchange Commission (SEC), requiring us to submit to them all monthly reports and delivery documentation relating to construction materials sold to builders during the last two quarters. These include business to business documentation.

Legally we are to comply with this request of the SEC and provide turn with the reports and any documentation as required by them. After reviewing the documents carefully the SEC will be satisfied that we were correct in including these write off for the year 2010. Such investigations by SEC take position when their attention is drawn to a large decrease in revenue in such a short period of time.

The Chief Financial Officer, Mr. Newman, has resigned. The legal requirement is that we need to issue a public notice announcing this opening. The notice has been posted in leading professional websites and National newspapers. Controls Inc will be ready to interview inside and outside candidates for the CFO position.

As a public company communication is critical in this situation. We need to come to the public and remedy this serious disturbance about the CFO being fired because of improper accounting. It is critical that we use our investors, shareholders, customers and employees aware. We need to make the public aware that our financial situation will not continue to decrease. The decrease in revenue was due we need to ethically disclose to them what our analyst expectations have arise with. Controls Inc is committed to deliver shareholder value through our growth strategies.

We must continue to focus and integrity for our customers extend to our shareholders.