HISTORY OF C.S.Y. YACHT CORPORATION

Caribbean Sailing Yachts, Ltd. was unable to find a manufacturer who would build sailing yachts to the high standards it required for its charter service; therefore, C.S.Y. Yacht Corporation was founded by Caribbean Sailing Yachts, Ltd.'s chief executive officer, John R. Van Ost, on September 1, 1976.

The property on which it is presently located was leased with a two year option to buy for $450,000.  This lease was extended to a three-year option which is exercisable on September 1, 1979.

At the start in 1976, a new plug and mold was built, and the first boat went into the water on January 15, 1977.  Production gradually increased to seven CSY-44's per month by May, 1977.  The chart illustrates the number of people employed, and the number of boats molded and delivered through July, 1979.

Along the way, another version of the CSY-44 was designed and built.  The CSY-44 Pilot House Ketch was introduced at the fall boat shows.

A CSY-37 was designed, built, and shown for the first t @ at the Miami Boat Show in 1978.  This yacht has since been redesigned into two models, the two stateroom @el, and the popular one stateroom model.

 n the fall of 1978, the CSY-33 was introduced at Annapolis.  At the present tire five of each model, CSY-33, CSY-37, and the CSY-44 are being produced each month.

In March of 1979, Dr. John R. Van Ost took personal and full-time charge of the company.  The CSY Yacht Corporation has been completely reorganized since his arrival.  CSY labor relations have been drastically improved.  Unionization of the Labor force was defeated by a margin of over two-to-one vote by the hourly employees in May, 1979.  Production has now been increased by almost 50%.

Peter Schmitt, our naval architect, has been engaged on a full-time basis as Vice President in charge of Engineering and Design.  A long-range expansion program has been worked out.  Phase I of that program is underway which will provide a customizing building where the Pilot House Ketch will be built, a new Administration and Sales Office with a Ship's Store, a new Commissioning building, and a new tooling and small parts building.

This program will be self-supporting.  It will increase production by as much as 25%.  It will offer greater econ @ cs in that our glass small parts-will be built here.  We will be able to do more of our stainless steel work, pulpits, stanchions, bow sprits, and shafts at the plant.  We shall do all our rigging and spars, and have the space to do our'canvas and cushion work.  All of this is now done by outside suppliers, and we expect this will at least double our potential income and mke the ccapany more self-sufficient and less dependent on outside suppliers.

The company has initiated an advertising and marketing program which is generally recognized as the best in the industry.  We are the only major yacht manufacturer that sells directly to the public.  Thus, CSY Yacht Corporation can stay competitively priced and at the same time give the customer a higher quality yacht.

CSY is also unique in its recently formed customized service  which allows a broader variation of options and customizing than any other yacht manufacturer.  Its location on the water also allows the company to offer the most complete commissioning service of any manufacturer.  Over 95% of all the CSY yachts are delivered on their own bottoms all over the world.  The company has a nationwide warranty surveyor service which allows warranty service to be authorized anywhere within the continental United States.

From a standing start in 1976, in just three years the CSY Yacht Corporation has become one of the top half-dozen sailboat manufacturers based on dollar volume.  It is generally recognized as the highest quality production manufacturer of cruising sailboats in the country.