What’s Inside?Letter From the President

6 Sigma 101: 6 Sigma LingoSafety Tips for the New YearIn Memory of a Holt Legacy

Holt’s 2006 Christmas Lunches15th Annual PG Breakfast

Teamwork at HoltHolt & IT the Place for an Intern to Be

Keifer Landfill ProjectA Blast Giving Back to the Community

Holt Goes Techno With GPSHR Corner & Asset AllocationAnniversaries & Retirements Winter 2007

Letter from the President

It is hard to believe that we are already into the New Year. As many of us return to work after a few days of celebration and relaxation, we might become overwhelmed with meeting requests, problem solving situations and customer demands. Before you find yourself caught up in the day-to-day routine, take a few minutes to step back and refocus. Remember the meaningful moments that defined your year, the accomplishments and challenges that crossed your path. Think about what worked and what didn’t work. Now look to the year ahead. How will you define 2007? What do you need to continue your journey toward health, happiness and success?

Here are a few thoughts to consider for the New Year:

•Make a concentrated effort to improve, grow, and prosper. Holt of California provides tools to help you plan for your financial future. Take advantage of these retirement tools such as 401k and Asset Allocation. Exercise and stay in good health and seek to keep a positive attitude.

•Use each new day wisely and make each second count. Set goals for each day and take specific actions that will help you accomplish them. Each new step towards your goal enables you to become that much closer to where you envision yourself to be.

•Focus on what makes Holt of California different from other dealers in regards to customer satisfaction. Remember to say “your welcome” instead of “no problem” when responding to others, especially customers. No one would like to think that at one time they were a “problem”.

•Take the initiative to continue to learn and grow with all aspects of our daily business. Seek to indulge and understand new information, technology and knowledge. Having the ability to continually grow in a changing environment will only pave a road of continued success and sense of accomplishment.

The key to Holt of California’s success is through teamwork, and remember we are all part of the same team at Holt of California. We each contribute our own unique quality to our daily business. This New Year holds unlimited opportunities for innovation, inspiration, compassion, growth and success. Make it a year you will never forget.

-Ken

Ken Monroe

Make 2007 a Year to Remember

Holt Happenings is published quarterly by Corporate Communications.

The next publishing date is April 16, 2007.

Alicia Clark, Writer/Editor/Designer

Articles submitted by Diana Arambula, Ryan Beatie, Ben Folger, Marlene Lawler, Kim Lightfoot, Tammy McIntyre, John Quiring and John Thomas.

916.991.8362 office916.870.4877 cellaclark@holtca.com

©Holt of California, 2007

6 SigmaMany of you may have heard familiar 6 Sigma jargon spoken around the office. A component of the 6 Sigma methodologies categorizes concepts into specific definitions. This helps to describe the parts and pieces of the analysis process. Since the beginning of the 6 Sig-ma deployment in June of 2003, these definitions have been used in project gateways and meetings. To help all our employees become better acquainted with some of these terms, we have prepared a quick reference sheet.

6 Sigma 101: A breakdown of the 6 Sigma Lingo

Opportunity •Any chance of improving an internal or external critical customer requirement.

Project Charter •A document that outlines the project. It often is referred to as the “road map” for the green belt team. The charter includes a problem statement and the purpose to do the project. It would also include a project goal, estimated financial benefit, scope of the project, list of team members and their roles and the timeline to complete the project.

Process•The steps an employee goes through to transform any inputs into an output. •The underlying reason that enables one or more problems or defects.

Project Benefits•Level 1 benefits have a direct impact on the bottom line. There is a clear relationship between the project and resulting gain that can be quantified and measured on the income statement. •Level 2 benefits result from the productive redeployment of people and capital resources to functions or areas with a demonstrated need. •Level 3 benefits generally create potential opportunities for future savings. The impact to the bottom line is “more likely than not” (i.e. greater than 50% confidence level).

What are the roles of 6 Sigma? Deployment Champion (DC)The DC must be a person of influence within the company and can help empower people. Makes resources (money and people) available for Black Belt.

Project Sponsor A General Manager who proposes a project in their area and develops a project charter. The Project Sponsor is ultimately responsible for the outcome of the project Master Black Belt (MBB)Full-time position, Mentors Black Belts, Lead 6 Sigma project teams, Trains and utilize 6 Sigma tools and methods, Networks and collaborates with other MBB’s and BB’s.

Black Belt (BB)A BB is a Full-time position. This individual trains and mentors Green Belts, Lead 6 Sigma project teams, Work with and advises manage-ment on improvement plans, Utilizes 6 Sigma tools and methods., Networks and collaborates with other Black Belts. Green Belts (GB)A GB is a Part-time position while on project. This person works with Black Belts on 6 Sigma project teams and can lead and manage mini projects.

Yellow Belts A YB is a Part-time team member, as appro-priate. All employees receive YB awareness training which helps to contribute continuous improvement.

You help make the difference with 6 Sigma!

Thanks to the active participation of 40+ green belts. With support from managers, project sponsors and owners we have had signifi-cant improvements in many areas of the company in the last 3 years. We have tackled several projects! Some of these projects include; Days Machine Sales Outstanding, Reducing Emergency Service Fees, Improve Rental Damage Recovery, Improve Central Dispatch Profit-ability, Improve Attachment Inventory Process, Reduce Fuel Expense, Reduce Environmental Expense and Improve Last Date of Labor to Close for Work Orders. If you would like to know more about these or other projects, contact a 6 Sigma Black Belt visit the 6 Sigma In-tranet page. Holt’s 6 Sigma Black Belts are Ryan Beatie, Craig Dean and Don Dewar.

6 Sigma Commentary

Kim Lightfoot (DC)

Ryan Beatie (BB)

Craig Dean (BB)

Don Dewar (MBB)

Safety Tips for The New Year

Kudos to these Stockton employees who practice safe and clean work habitis with IIPP!

Stockton recipients of Holt Bucks for IIPP walkthrough:Main Shop: KEN CULP

Spec Shop: BOB WINSLOWPrep Shop: KYLE MUNSON

Ag: GLEN NELSONSupervisor: RUSS SURBER (Spec Shop)

WALT LOGAN (Main Shop)SMS: BILL GROSHONG

Truck Shop: WENDELL WALLACETruck Shop Manager: RENO RIGHETTI

Used Parts: LARRY BURTONRICHARD GEIGLE

SAFETY

HOC

Have no fear you will always feel safe when John Thomas is near! Holt of California’s Safety and Facilities Manager eagerly provided a few safety tips to keep in mind for the New Year. While we are all aware that safety on the job is essential, some of us may overlook safety practices at home. Being aware of safety precautions at home and in leisure activi-ties can help prevent possible injuries.

Some suggestions for home safety:

Replace the batteries smoke detectors at least annually.

Have a fire evacuation plan. Be sure all family members, including children know what to do in a fire emergency, and where to meet, once outside.

Keep all flammable or toxic materials locked up and away from children. Examples: gasoline, paint, thinners, insecticides, medicines, bleach, and cleaners.

Have emergency phone numbers such as police, fire, ambulance, and the poison control center number handy by the telephone.

Do not leave extension cords, hoses, or other trip hazards across walkways.

Do not store anything on stairways, even temporarily.

Use safety glasses and hearing protection when using power tools such as electric saws and lawn mowers.

Practice good ergonomics while using your home computer or desk.

Practice ladder safety: proper angle, secured, don’t stand on top 2 steps, etc.

Safety can be practiced anytime, anywhere-- get your family and friends involved. Don’t let the habit stop just because you leave the workplace—You, Your Family, and Your Friends will all benefit.

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In Memory of a Holt LegacyKenneth Daniel Beatie

1916 - 2006

Mr. Beatie was born in Stockton, CA on February 16, 1916 to Daniel and Lucy Beatie. He graduated from Marysville High School in 1933. Following his graduation from College of the Pacific in 1937, Mr. Beatie joined his father in the ownership and operations of Marysville Tractor and Equipment Com-pany (later Tenco Tractor), a Caterpillar dealership. He and his college sweetheart Helen Margaret Arbogast were married in June 1940 at the Nevada City United Methodist Church.

While the family resided in Marysville, Mr. Beatie was very ac-tive in the life of the community. He was a Rotarian, served on the Rideout Hospital Board, and was the leader of Boy Scout Troop 21 for 15 years. Mr. Beatie believed his years of scouting and mentoring hundreds of boys was one of his most mean-ingful life accomplishments. In 1952, he helped establish the Glacier Trails Boy Scout Camp for the Buttes Area Council and later founded Donner Mine Camp, formerly the Zeibright Mine, located in Bear Valley. Today, Donner Mine is a non profit camp used by numerous charitable organizations for camping programs and retreats, including a much acclaimed music camp for junior and senior high school students from through-out California.

In 1955, the Beaties moved with their three children to their home in Rough & Ready. The family became active in a num-ber of organizations in Nevada County, among them 4-H, Boy Scouts, Rainbow Girls, Demolay, PTA and the Grass Val-ley United Methodist Church where Mr. Beatie served on the Board of Trustees. He also served for thirty years on the Board of Regents of his Alma mater, the University of the Pacific in Stockton. Several of his fellow regents dubbed him the “may-or” of Rough & Ready.

The Beaties were members of Alta Sierra Country Club and the Empire Mine Club. They enjoyed motor home travel and made numerous trips throughout the United States and Canada. The family were early organizers and participants in Rough & Ready Secession Days. Mr. Beatie and his sons restored the old Bunker Hill Mine and miner’s cabin on their property. On Secession Day, Mr. Beatie would don his miner’s garb and give tours to dozens of fascinated visitors, passing around gold nuggets and coins while telling the story of the Gold Rush in Nevada County.

Mr. Beatie had a life long interest in turning new ideas into tan-gible results. As a teenager he designed and built a rear engine automobile, called Tear Drop, that he constructed with pipe, airplane fabric and glue. He built the family’s first travel trailer and, during his years as a Caterpillar dealer, designed and built several pieces of specialized construction equipment. At age 55, he took up flying and thereafter commuted from the Nevada County Airpark to his Pleasant Grove office’s private airstrip.

His favorite and most demanding hobby was stained glass work. For twenty years, Mr. Beatie designed and crafted hun-dreds of stained glass pieces in the Tiffany style including win-dows, lamps, and momentous. His windows can be seen at the North San Juan Methodist Church as well as in numerous pri-vate homes across the United States. Mr. Beatie frequently cre-ated and donated smaller pieces for charitable auctions and as gifts. Mr. Beatie will be missed by those who knew him.

Holt’s Night Before Christmas

‘Twas the night before Christmas, when out in the yardNot a motor grader was moving, even without a guardThe stockings were hung in the hallway with care,Knowing with Acert technology St. Monroe soon would be there;

Holt employees were nestled all snug in their beds,While visions of skid steer loaders danced in their heads;And mamma in her ‘kerchief, and I in my CAT cap,Had just settled down for a long day-off nap,

When out on the lawn there arose such a clatter,I sprang from the bed to see what was the matter.Away to the window I flew like a flash,Tore open the shutters and threw up the sash.

The moon on the breast of the new-fallen snowProjected a CAT yellow to objects below,When, what to my wondering eyes should appear,But a mini-excavator, and eight tiny reindeer,

With a nice driver, so lively at 10 p.m.,I knew in a moment it must be St. Ken.More rapid than a D11N his coursers they came,And he whistled, and shouted, and called them by name;

“Now! Dasher, now! Dancer, now! Prancer, and Vixen!On! Comet, on! Cupid, on! Dunder and Blixen!To the top of the porch! to the top of the wall!Now dash away! dash away! dash away all!”

As dry leaves that before the wild hurricane fly,When they meet with an obstacle, mount to the sky,So up to the housetop the coursers they flew,With the mini-excavator full of toys, and St. Ken too.

And then, in a twinkling, I heard on the roofThe prancing and pawing of each little hoof.As I drew in my hand, and was turning around,Down the chimney St. Ken came with a bound.

He was dressed all in CAT yellow, from his head to his foot,And his clothes were all tarnished with ashes and soot;A bundle of toys he had flung on his back,And he looked like Holt’s president just opening his pack.

He spoke not a word, but went straight to his work,And filled all the stockings; then turned with a perk,And laying his finger aside of his nose,And giving a nod, up the chimney he rose;

He sprang to his mini-excavator, to his team gave a whistle, And away they all flew like the down of a thistle.But I heard him exclaim, as he drove out of sight,“Merry Christmas to all, and to all a good-night!”

Holt’s 2006 Christmas lunches

H o l t made a list

and checked it twice to make sure and have

all the right spice. For the annual Christmas lunches, that is.

Holt of California’s HR department organized the Christmas lunches and

raffle prizes for all of our 15 locations. G r e a t j o b H R !

There was definitely enough food for everyone. Everything from mushroom glazed tri-tip to vinaigrette pasta salad and don’t forget to save room for the cookies! The Christmas lunches

didn’t just include food but also a variety of raffle prizes. What

a great way to start off the Holiday season!

15th Annual PG Breakfast

Starting at 4:30 a.m. on December 22nd, 2006 Eric Williamson, Justin Walker and their crew began cooking up a scrumptious holiday breakfast. What were the main ingredients? A whopping 20 pounds of bacon, 15 pounds of sausage, 15 dozen eggs and 11 pounds of potatoes.

What began 15 years ago with Holt of California’s service division, has now evolved into an annual tradition. Rich Barlett started the breakfast back in 1991 with a dozen mechanics. Now, that group has grown to about 120. Throughout the year the mechanics save aluminum cans in the huge empty oil barrels. Towards the end of the year the aluminum cans are gathered and turned into cash to fund this annual breakfast.

This breakfast is scheduled the last week before Christmas with more than just food. Food and prizes wow what a pre-Christmas treat! Some of the raffled prizes include Tools, T-shirts, Gift Cards, CAT paraphernalia, and much more. Extra money form the recy-cled cans are put into gift cards and the remainder of the prizes are donated from local vendors. Service awards are also given during this breakfast. These awards could be announced in March but are saved to carry on this annual tradition.

Special thanks to Justin Walker who took about a week to orga-nize in preparation for this morning feast. Until next year these employees will have to save up an appetite.

When asked to comment, on a few unique qualities about the Yuba City store Darrell Weight explained, “We are a Loyal, Dedicated Division with Diversity, Teamwork, Flexibility, and I feel we are the biggest little store here at Holt.”

Teamwork Divides the task and Doubles the Success

What is the most important factor in Holt of California’s success? Is it the technology? Perhaps it’s the sale of a 657 Scraper? Or having a beautiful Power Point presentation? Wrong, wrong, and wrong. It all boils down to teamwork. So what does teamwork mean? Although this might seem trivial, working together in a collaborative effort towards a common goal exemplifies teamwork. Achieving this cohesiveness can be the most invigorating sense of accomplishment. Ideally, each person has autonomy, a sense of their individual contribution to the group’s mission with commitment to excellence regarding their contribu-tion. Employees who are realistic and honest, work well together, and have a passion for doing something great will in turn achieve success. Working together includes constant communication and the willingness to assist and support others so that each individual, and hence the group, will achieve excellence. The benefits of effective team work include a sense that employees support each other’s contributions in moving toward a common goal. It is finding that balance between innovative ideas and experi-ence with the work that all of us contribute to. Many have heard the statement that there is “no ‘I’ in the word ‘Team’.” This is as true today as it has ever been. Teamwork is an essential element for the success and survival of a business.Fostering teamwork is creating a work culture that values collaboration. In a teamwork environment, people understand and believe that thinking, planning, decisions and actions are better when done cooperatively. People recognize the belief that “teamwork divides the task and doubles the success.” For many Holt of California employees this philosophy exists and is shown through the extraordinary work they perform. Regardless of what division, department or area of the company you are in here at Holt of California your work does not go unrecognized. Every area of the company is pertinent to the success of the business as a whole. It is through this recognition and teamwork that Holt of California will continue to stand out from the competition and prove to be an extraordinary Caterpillar dealership.

Teamwork Divides the task and Doubles the Success

“A few unique qualities about Roseville is that it has grown from 7 to 16 employees in the last 5 years I have been here and the crew seems to just keep getting better. Working together to accom-plish customer satisfaction is on every ones mind all the time.”-Mike Dutro

“The one unique quality that makes Los Banos, Los Banos is the non specialized way we work. We are set apart from the rest of the company in a smaller facility but we still have the demand of all divisions in our area, so we are forced to be qualified in EMD, On highway, small construction, Ag and any other product with the CAT name on it. We work together here in Los Banos very well from parts to sales and service. The departments almost blend together.” -Johnaton Jasso

“My favorite part of my job at Holt is learning new things, and all of the many challenges, and responsibilities I encounter every day. When I started working at Holt I didn’t know any-thing about tractors, but I’ve learned a lot in the past 3 years. My newest and most important responsibility is being Union Steward. I look forward to the many new experiences I’ll have at Holt being Steward, and as I finish my apprenticeship.”-Jacob Brodie, Stockton 1521

Holt & IT a Definite Place for a Co-op Intern to be

Looking at a giant yellow Caterpillar machine you might not realize the vital role information technology plays in the operation, function and maintenance with each piece of equipment. Francisco Flores and Leochris Ramos sure didn’t prior to their University of the Pacific Co-op internship at Holt of California. It didn’t take long for these two to recognize the experience they would gain would be an invaluable endeavor for the future of their professional career.

Almost thirty years ago the University of the Pacific developed a Co-operative education program under the School of Engineering & Computer Science. The University of the Pacific Co-op Internship provides a contex-tual learning environment that validates the curriculum of study and networks the student for future career employment. The experience these students gain is considered to be an integral part of their education. Each year, students obtain interesting, substantive, and career-related internships. You may ask yourself, how can an internship help me? The answer to this question is simple. An intern-ship is an extremely beneficial opportunity and provides a competitive edge when entering the workforce.

So, how has the internship at Holt of California allowed these UOP students to apply theory into practice? When asked to comment Francisco explained, “One of the major things our professors at Pacific focus on is teaching us how to apply universal concepts into a simplistic process with each situation. Since technology advances so fast and varies so much, it is hard for schools to provide up to date courses on specific technology. They offer many different courses, ranging from in-depth course work on a specific programming language to something more timeless, like how to take on any project as a team. Every course I have taken has provided me with some useful bit of knowledge that I have used here at Holt”.Leochris believes he has gained more knowledge in the field of networking and computers. “The most important thing I can take away from this internship is the experience and the idea of what it is like to work in an IT department. Working in an IT department is one of my choices for a career and I believe that through this internship, I am now sure that I would consider working in this type of industry”.

Working as an Intern at Holt of California has enabled Francisco and Leochris to discover the many intricacies involved within the IT department of a Caterpillar dealership. Technology as a whole is an ever-changing environment and as this industry progresses research has found many companies will seek candidates who have a mix of technology, business and communication skills. Together Holt of California and the University of the Pa-cific have developed a lasting business relation-ship that has enabled Co-op interns to learn in an innovative progressive environment.

Leochris Ramos, left and Francisco Flores, right using their IT skills.

Francisco Flores,left and Leochris Ramos, right

Money does not grow on trees but “Green Power” can generate a few pretty pennies

Few Caterpillar dealerships ever have the opportunity to work on a monumental project such as this. John Quiring and his team of expert technicians took on the project to install a new crankshaft for the G3616 – Caterpillar Electric Power Generator. This enormous generator cost more than just pocket change; it runs at an estimat-ed cost of 2 million dollars. Why so expensive? For one this engine generates a substantial amount of horse power, to be more accu-rate about 4,260 horsepower at 900 RPM. Now that’s impressive!

This engine runs 24 hours a day in parallel with four other engines of the same type. The generators produce 4160 volts AC and feed the SMUD main utility grid producing in excess of 8.3 megawatts of power. Don’t breathe in too hard because this generator operates on landfill gas (methane). This gas is naturally produced from the decomposing garbage at the Sacramento County Landfill. This type of power production is known as “Green Power.”

How did Holt become involved with this project? The customer was performing a major overhaul as required by the O&M manual with an approximation of about 60,000 hours. The engine was put into service and operated for 30 minutes; in that time period the engine spun 4 rod bearings and damaged the crank beyond repair. Holt was notified and immediately came to the rescue. The customer contracted with us to install a new crankshaft. The new crankshaft is approximately 10 feet long and it weighs 6500 lbs. This is a very large-scale job that only a handful of dealers in the world have ever taken on. It is estimated that this repair will take one month with 5 to 6 guys working on the machine 6 to 7 days per week. This will definitely be a hard act to follow.

“This is one of several sites that run on landfill gas in our territory; even as the construction industry slows down the landfills continue to take in garbage which means that there will be good future prime power opportunities for Holt of California”.-John Quiring

“I feel very fortunate to have been a part of such a great sponsorship. Here at Holt we are dedicated to the Agricultural industry and it is a great feeling to help give back to the industry. This sponsorship was twice the reward for me, doing what I love to do (shooting sporting clays) and helping contribute to the vitality of such an important part of our California Agricultural Community. I hope that I will get to participate again in the future, it is always a proud moment to work for a company that helps contribute to such outstanding organizations like The North Delta Conservancy.”

-Tammy McIntyreAG Operations Supervisor

On Saturday July 23rd 2006, six adventurous Holt employees participated in the North Delta Conservancy Fun Shoot at Birds Landing just outside of Dixon. For almost five hours Tammy McIntyre, Bill George, Jessica Culp, Rob Manzer, Mike Vieira and Tim Vaughn shot sporting clays and had a blast.

Holt of California helped sponsor this event to help contribute to the community. The North Delta Conservancy is the Delta’s largest egg rescue program and one of the three largest wood duck projects in California. In eight years they have raised and released over 5,300 wild mallards and maintain 300 wood duck boxes hatching 7,200 wood ducklings.

“I thought the shoot was a lot of fun, and it was a great experience. Especially for such a great cause”

-Jessica CulpHolt of California

Having a blast giving back to the community

Brilliant minds have expressed every conceivable opinion as to understand the relationship between those distant points of light and our daily life. We have been tied to the stars for millennia; planting crops, having children and planning festivals. Even the great pyramids of Giza are designed perfectly to match the stars in the belt of Orion.

The early navigators, Magellan, Cook and Columbus relied on the stars to navigate the earth in their explorations with varying degrees of success. Over time we have used advances in time keeping, angle measurements, refined observation techniques and improved optics to improve accuracy, finally building our own stars to navigate by; GPS satellites.

Welcome to the next step of accuracy – Accugrade. Utilizing the GNSS (Global Navigation Satellite System) CAT is proud to partner with Trimble Navigation to bring the latest in positioning technology to the Jobsite.

The Accugrade GPS Grade Control System is a high technology machine control and guidance system that allows operators to grade with increased accuracy, without the need for survey stakes. Digital design data, in-cab operator guidance features and automatic blade controls help the operator achieve grade faster, meaning higher productivity, lower operating costs, and greater profitability.

GPS machine control is relatively new to Holt of California. This new technology will help to provide increased jobsite production, improve bid accuracy, prolong machine life and lower operating costs. To top it off this impressive product is environmentally conscious by reducing fuel usage and keeps the engine running with more efficient power bands. Holt of California is excited to bring Accugrade Machine Control systems to our customers.

Holt of California was host to Caterpillar’s Western Regional Accu-grade training. Utilizing our classroom and 40 acre GPS training site, we worked with dealers as far away as Canada and Hawaii. Fo-cusing on the basics of GPS Machine Control CAT built the knowl-edge base and skill level of each participant. Assisted by our Head Trainer, Denis Pelletier, each student was able to plan, design, build and grade check a GPS machine control project. The ability for each student to have hands-on experience with every step of the process cemented the knowledge learned in the field.

Holt Goes Techno with GPS

HR

CORNER

New Year Tips from HRWelcome to 2007! For some people, the New Year is a milestone and should be marked with renewed resolutions and goals. For others, it is just another day. But for those of you who want to start your New Year out on the right foot, here are a few ideas that you may be able to use:

•If you’ve moved recently, make sure the Human Resources Department has your current information on file, including your address, personal phone num-bers, and emergency contacts.

•Take a look at the benefits that Holt of California offers to its employees to see if your job can help you achieve your personal goals. For example, if one of your resolutions is to get in shape, you may want to take advantage of the waivers of enrollment fees that Holt offers its employees to two local health clubs.

•Keep a running list of accomplishments that you’ve done throughout the year. This should make your next performance review easier and less stressful, and will also demonstrate to your supervisor or manager the various contributions you are making to your job.

•Make a list of work-related goals that you’d like to accomplish over the next 12 months, and discuss ways to achieve these goals with your supervisor or manager.

And the most important thing to remember is to keep your New Year’s reso-lutions simple. People who have too many goals for the year become over-whelmed and discouraged and never achieve what they set out to do. By choosing only one or two important goals, you will greatly improve your chances of success. Good luck!

“The experience was absolutely terrific! The children were so excited to see us there. They even had some songs prepared to sing to us. It was exactly what we all needed to get into the Christmas spirit. It’s nice to work for a company that is so willing to help bring some joy to those who need it most. This is the first time Holt has coordinated this specific Christmas Giving Project and it was a great success”.- Cassandra Gilchrist

Beginning at 9:30 a.m. on December 20th, 2006 10 Holt of California employees participated in a Christmas giving for young under-privileged children. Located at the Head Start Center; Marlene Lawler, Kelly Waugh, Diana Arambula, Dawn Ellison, Tracy Appleton, Heather Arevalo, Leslie Beck, Cassandra Gilchrist, Julia Lane and Mollie Gallegos all met to hand out presents. Together Holt of California and the HR/Benefits/Payroll departments were able to bring smiles to many small faces.

Think of this as a recipe for

your future. Each ingredient plays a significant role to produce

a succulent entrée. For you sports fans think of it in football terms, with out Tom

Brady or Peyton Manning it would be hard to have a winning team. Each position plays a specific role to the glorious victory of a team.

So, plan for your future and use the tools Holt of California provides with Asset

Allocation.

Investment professionals believe that asset allocation may determine your long-term investment results. It’s personal, so do it with your goals and risk tolerance in mind.

A fancy term for a simple concept“Asset allocation” is simply how the money in your retirement savings plan is divided among the three major asset classes – stocks, which are also called equities; bonds, which are also called fixed income secu-rities; and cash equivalents, which include money market funds and other stable value investments. To be effective, it’s important to main-tain your asset allocation over the long term. Your quarterly account statement displays your asset allocation in a pie chart that shows how your investments are divided. You’ll also find a pie chart with your as-set allocation when you log on to your account via the Benefits Online website.

Personalize your asset allocation planIf you skipped over the asset allocation process when you started in-vesting for retirement, your current asset allocation reflects the funds you have selected but it may not accurately reflect your goals or time horizon. You can personalize your asset allocation plan by following this three-step process:

Step 1: Identify your time horizon and your risk tolerance.

Years to retirement

Time horizon Attitude towards risk

Risk Tolerance

0 – 5 Short term Unwilling to sustain decline in account value in exchange for possibly not keeping up with inflation

Low tolerance for volatility/risk

6 – 10 Intermediate term

Willing to sustain moderate and oc-casional declines in account value in exchange for potentially higher long-term gains

Moderate tolerance for volatility/risk

11 or more Long term Willing to sustain significant decline in account value in exchange for potentially superior long-term gains

High tolerance for volatility

Step 2: Allocate your assets to reflect your personal situation.Even if your tolerance for volatility is low, keep in mind that you may live for many years in retirement and you should consider keeping some of your assets in stock investments. Consider an asset allocation that fo-cuses on core bond funds but also includes some exposure to core stock funds and international or global funds to gain exposure to foreign mar-kets. With more tolerance for volatility and a long-term time horizon, you may want to consider an asset allocation that focuses more on stock funds, including funds that aim for growth, small company funds and international stock funds. For balance include bond funds in your allo-cation mix. The actual percentages you choose can further reflect your investment objectives and risk tolerance.

Step 3: Choose funds that meet your allocations.With your allocations as a guide, choose funds in pro-portion to your allocations. Consider investing in at least three funds, even when your account is small, to gain exposure to all three basic asset classes. And, you can expand the number of funds you own at any time.

Asset Allocation for the long termCompare your actual allocations to your target allo-cations once a year. If your allocations have strayed from their target, it’s a good idea to bring them back into balance by taking some money out of the as-set categories that have performed best and adding to the asset categories that have lagged. You can do this without tax consequences within the Holt of California 401(k) Plan. You may want to adjust your investment mix if your personal circumstances change, for example, if you get married and you want to consider your allocations in conjunction with your new spouse. Diversification does not ensure a profit or protect against loss in a declining market.

Goal Manager fund optionsFor those of you who do not feel comfortable choos-ing an asset mix, the Holt of California 401(k) Plan offers three fund options that take the confusion out of saving for your retirement. The Conservative, Moderate, and Aggressive Goal Manager Options are excellent investment options. One need only decide what his/her tolerance is and Merrill Lynch does the rest. These funds are rebalanced on a quarterly basis to ensure you maintain your target allocation.

Contact information

For investment advice please contact Tom Marx, Merrill Lynch at 888.367.0663.

For enrollment questions/net pay modeling please contact Marlene Lawler at 916.991.8310, mlawler@holtca.com or Cassandra Gilchrist at 916.991.8372, cgilchrist@holtca.com

Plan For your Future

20 years

Vince Righetti

15 years

Cary Roulet10 years

Jason Hjelmstad

Richard Silva

40 years

Terry Zerkovich

35 years

Mollie Gallegos

Holt’s Memorable Anniversaries

5 years

Brian Schummer

John Quiring

None of us here at Holt want to say good-bye. But, please think of us when you’re on vacation under the sun having a tropical cocktail or having a blast watching your favorite football game.

Holt hosted a Retirement Pizza Luncheon for Stan Randall and a Retirement BBQ for Alan Kirby. Thank you both for all your hard work, dedication and loyalty. You will be missed.

Hard to say Good-bye ... Happy Retirement!

Stan Randall

Alan Kirby