City of Kyle Wecomes RSI, Inc.

to City's Economic Base

     Response-Service-Innovation (RSI), Inc. and the City of Kyle have reached an agreement that will bring the manufacturing company into the City.

     The unique agreement centers on RSI bringing as many as 200 jobs into the City of Kyle over the next five years. In turn, the City of Kyle will reimburse RSI, Inc. for their land purchase based on the number of jobs created and retained. The reimbursement is doubled if the person holding the job lives in Kyle.

      “The City of Kyle is proud to be the new home of a proven company like RSI, Inc.,” said Kyle Mayor Mike Gonzalez. “RSI, Inc. has an outstanding reputation as not only a great community contributor, but also as a clean and responsible steward of the environment.”

        RSI, Inc. will bring its Value Added Manufacturing Component Distribution Division (electronic interconnect products), and its CRI (Computer Ruggedization and Integration) division into Kyle. RSI’s products support military, aerospace, oil, homeland security, and medical markets. RSI’s products are specifically ruggedised for use in harsh environments found places such as submarines to aircraft to oil drilling.

       “RSI looks forward to being part of the business community in Kyle and supports the enhancement of the manufacturing infrastructure and the dynamic growth envisioned by Kyle city leaders,” said Harish Malkani, President of RSI, Inc.

        The City of Kyle is the second largest city in Hays County and the sixth fastest growing city in Texas. The City has grown from a population of approximately 5,000 in 2001 to approaching 30,000 in 2006. Kyle’s current plotted residential development supports a population of 60,000. This, combined with the currently approved 600,000 square feet of retail development, makes Kyle a prime location for companies looking for expansion sites.

         “RSI represents the ideal project for our community as we strive toward our goal of developing the City of Kyle as a full-service market center where our residents can live, play and work,” said Kyle City Manager Tom Mattis. “The addition of a high-tech, environmentally-friendly, quality employer like RSI is a huge step in that direction. We are proud of the partnership we have developed with RSI to make Kyle their new home.”

        RSI’s initial construction project in Kyle will be a 40,000 square foot facility costing between three and four million dollars with an additional $500,000 investment in equipment. The facility will be built on three acres of the five acres of land purchased. The additional two acres would be available for future expansion.

     “The benefits for the City of Kyle having a company like RSI move into our city are huge,” said Diana Blank, City of Kyle Director of Economic Development. “Not only do we expand our employment and property tax base, but we also put in place a generator for future economic development to bring in other business that support RSI’s manufacturing requirements.”

      Construction of RSI’s facility is currently scheduled to begin by March 2007 and completed by October 2007 with Plant operations beginning immediately thereafter.