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October 3, 2006

Dear Valued Customer,

On September 26, 2006, without notice and unrelated to our performance, Dentsply International cut-off over 170 dealers in the United States. Many of these dealers, including Carolina Dental Supply, Inc. has had the line for decades. We have worked to grow their business and complied with the terms of our 'agreement' faithfully, ethically and professionally. This relationship was overlooked in favor of the profit of Dentsply. This situation epitomizes the big business attack on small businesses throughout America.

Carolina Dental has been a local employer since our inception in 1932. We are a family owned business that pays local business taxes, supports the local economy and is active in the local community. Our employees include warehouse personnel, office staff and our sales team. We are your neighbors, church members and your friends.

Dentsply International ignored these personal issues and focused on the dollars in their decisions. They felt dentists only need a few choices and the personal attention of the local dealer is unimportant. Dentsply International would rather dictate to the dental practitioner their dealer of choice than allow you, the customer, to make that decision. We have provided value, service and choice to our dental customers for almost 75 years. We are confident of your loyalty and know you appreciate our company. Therefore, we encourage you to continue that support and remain our valued customer.

We will have alternative brands for you to select other than the Dentsply products. We are working with these other manufacturers to obtain samples for you to try. We will have aggressive promotions on these products as well. We will be ready to assist you with any questions that you may have.

We are also working with our buying cooperative (ADC/UDD) to access programs to ensure you continue to have choices in dental distribution. They have established a website: www.mydealerofchoice.com for you to voice your concern. We also have a letter that you may mail to Dentsply to voice your concern. Again, over 170 dealers are affected by this decision. With limited choices, the free market for prices and options disappears. This will directly affect you. We hope you remain our loyal customer and will not support Dentsply products.

Please call us if you have any further questions or would like to know specifically what Dentsply products your office has purchased. We are here to support our customers.

Your dealer of choice,

Carolina Dental Supply, Inc.