----

----

| x        QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) |
|---------------------------------------------------------------------------------------------------|

| For the quarterly period ended July 4, 2009 |
|---------------------------------------------|

| or |
|----|

| o        TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) |
|----------------------------------------------------------------------------------------------------|

| OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------------------------------|

| For the transition period from _____________ to _____________. |
|----------------------------------------------------------------|

| Delaware                                                       | 3089                                                     | 20-0645710                           |
|----------------------------------------------------------------|----------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) |
|                                                           |                                                     |                                 |

----

|  PART I – FINANCIAL INFORMATION   |                                                                                                                             |   |
|----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                         |                                                                                                                             |   |
| Item 1.                                      | Condensed Consolidated Financial Statements                                                                                      |   |
|                                         |                                                                                                                             |   |
|                                         | Condensed Consolidated Statements of Operations –                                                                          |   |
|                                         |               Three months ended July 4, 2009 and June 28, 2008 | 2      |
|                                         |                                                                                                                             |   |
|                                         | Condensed Consolidated Statements of Operations –                                                                          |   |
|                                         |               Six months ended July 4, 2009 and June 28, 2008   | 3      |
|                                         |                                                                                                                             |   |
|                                         | Condensed Consolidated Balance Sheets –                                                                                    |   |
|                                         |               July 4, 2009 and December 31, 2008                | 4      |
|                                         |                                                                                                                             |   |
|                                         | Condensed Consolidated Statements of Cash Flows –                                                                          |   |
|                                         |               Six months ended July 4, 2009 and June 28, 2008   | 5      |
|                                         |                                                                                                                             |   |
|                                         | Notes to Condensed Consolidated Financial Statements                                                                             | 6      |
|                                         |                                                                                                                             |   |
| Item 2.                                      | Management’s Discussion and Analysis of Financial Condition                                                                |   |
|                                         |               And Results of Operations                         | 31     |
|                                         |                                                                                                                             |   |
| Item 3.                                      | Quantitative and Qualitative Disclosures about Market Risk                                                                       | 44     |
|                                         |                                                                                                                             |   |
| Item 4.                                      | Controls and Procedures                                                                                                          | 45     |
|                                         |                                                                                                                             |   |
|                                         |                                                                                                                             |   |
| PART II – OTHER INFORMATION            |
|                                         |                                                                                                                             |   |
| Item 1A.       | Risk Factors                                                                                                                | 46     |
|                                         |                                                                                                                             |   |
| Item 6.                                      | Exhibits                                                                                                                         | 46     |
|                                         |                                                                                                                             |   |
| Signatures                                   |                                                                                                                             | 47     |

----

|                                         |   | For the three months ended |    |
|----------------------------------------------|--------|----------------------------|---------|
|                                         |   | July 4,                    |    |   | June 28, |   |
|                                         |   | 2009                       |    |   | 2008 |   |
|                                         |   | (Amounts in thousands)     |    |
|                                         |   |                       |    |   |   |   |
| Net sales                                    |   | $                          | 260,576 |   |   | $ | 341,280 |   |
| Costs and expenses:                          |   |                       |    |   |   |   |   |   |
| Cost of products sold                        |   |                       | 197,831 |   |   |   | 272,926 |   |
| Selling, general and administrative expenses |   |                       | 36,008  |   |   |   | 42,569 |   |
| Amortization of intangible assets            |   |                       | 4,912   |   |   |   | 4,912 |   |
| Total costs and expenses                     |   |                       | 238,751 |   |   |   | 320,407 |   |
| Operating earnings                           |   |                       | 21,825  |   |   |   | 20,873 |   |
| Foreign currency gain (loss)                 |   |                       | (70     | ) |   |   | 56 |   |
| Interest expense                             |   |                       | (33,124 | ) |   |   | (51,065 | ) |
| Interest income                              |   |                       | 83      |   |   |   | 107 |   |
| Loss before benefit for income taxes         |   |                       | (11,286 | ) |   |   | (30,029 | ) |
| Benefit for income taxes                     |   |                       | (3,307  | ) |   |   | (10,536 | ) |
| Net loss                                     |   | $                          | (7,979  | ) |   | $ | (19,493 | ) |

----

|                                         |   | For the six months ended |    |
|----------------------------------------------|--------|--------------------------|---------|
|                                         |   | July 4,                  |    |   | June 28, |   |
|                                         |   | 2009                     |    |   | 2008 |   |
|                                         |   | (Amounts in thousands)   |    |
|                                         |   |                     |    |   |   |   |
| Net sales                                    |   | $                        | 443,327 |   |   | $ | 597,653 |   |
| Costs and expenses:                          |   |                     |    |   |   |   |   |   |
| Cost of products sold                        |   |                     | 367,522 |   |   |   | 498,807 |   |
| Selling, general and administrative expenses |   |                     | 76,970  |   |   |   | 82,431 |   |
| Amortization of intangible assets            |   |                     | 9,818   |   |   |   | 9,826 |   |
| Total costs and expenses                     |   |                     | 454,310 |   |   |   | 591,064 |   |
| Operating earnings (loss)                    |   |                     | (10,983 | ) |   |   | 6,589 |   |
| Foreign currency loss                        |   |                     | (158    | ) |   |   | (495 | ) |
| Interest expense                             |   |                     | (66,880 | ) |   |   | (74,139 | ) |
| Interest income                              |   |                     | 148     |   |   |   | 310 |   |
| Loss before benefit for income taxes         |   |                     | (77,873 | ) |   |   | (67,735 | ) |
| Benefit for income taxes                     |   |                     | (14,356 | ) |   |   | (26,400 | ) |
| Net loss                                     |   | $                        | (63,517 | ) |   | $ | (41,335 | ) |

----

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES 

|                                                                          |                                         | July 4, |      |   | December 31, |   |
|-------------------------------------------------------------------------------|----------------------------------------------|---------|-----------|--------|--------------|--------|
|                                                                          |                                         | 2009    |      |   | 2008         |   |
|                                                                          | (Amounts in thousands, except share amounts) |
| ASSETS                                                                        |                                         |    |      |   |         |   |
| Current Assets:                                                               |                                         |    |      |   |         |   |
| Cash and cash equivalents                                                     |                                         | $       | 19,482    |   |         | $      | 58,289 |   |
| Accounts receivable, less allowances of $5,991 and $6,405, respectively       |                                         |    | 136,322   |   |         |   | 90,527 |   |
| Inventories:                                                                  |                                         |    |      |   |         |   |   |   |
| Raw materials                                                                 |                                         |    | 37,974    |   |         |   | 53,060 |   |
| Work in process                                                               |                                         |    | 20,233    |   |         |   | 28,085 |   |
| Finished goods                                                                |                                         |    | 35,539    |   |         |   | 42,267 |   |
|   Total inventory                                                   |                                         |    | 93,746    |   |         |   | 123,412 |   |
| Prepaid expenses and other current assets                                     |                                         |    | 23,105    |   |         |   | 19,985 |   |
| Deferred income taxes                                                         |                                         |    | 2,800     |   |         |   | 16,867 |   |
|  Total current assets                                                    |                                         |    | 275,455   |   |         |   | 309,080 |   |
| Property and Equipment, at cost:                                              |                                         |    |      |   |         |   |   |   |
| Land                                                                          |                                         |    | 3,716     |   |         |   | 3,709 |   |
| Buildings and improvements                                                    |                                         |    | 35,350    |   |         |   | 35,206 |   |
| Machinery and equipment                                                       |                                         |    | 257,144   |   |         |   | 253,290 |   |
| Total property and equipment                                                  |                                         |    | 296,210   |   |         |   | 292,205 |   |
| Less accumulated depreciation                                                 |                                         |    | (140,452  | )      |         |   | (122,194 | ) |
|     Total property and equipment, net                     |                                         |    | 155,758   |   |         |   | 170,011 |   |
| Other Assets:                                                                 |                                         |    |      |   |         |   |   |   |
| Intangible assets, less accumulated amortization of $74,306 and $64,488,      |                                         |    |      |   |         |   |   |   |
|     respectively                                          |                                         |    | 183,896   |   |         |   | 193,604 |   |
| Goodwill                                                                      |                                         |    | 391,836   |   |         |   | 390,779 |   |
| Other                                                                         |                                         |    | 37,367    |   |         |   | 40,579 |   |
|     Total other assets                                    |                                         |    | 613,099   |   |         |   | 624,962 |   |
|                                                                          |                                         | $       | 1,044,312 |   |         | $      | 1,104,053 |   |
|                                                                          |                                         |    |      |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)                                |                                         |    |      |   |         |   |   |   |
| Current Liabilities:                                                          |                                         |    |      |   |         |   |   |   |
| Accounts payable                                                              |                                         | $       | 61,003    |   |         | $      | 59,603 |   |
| Accrued expenses and taxes                                                    |                                         |    | 79,642    |   |         |   | 76,304 |   |
|      Total current liabilities                       |                                         |    | 140,645   |   |         |   | 135,907 |   |
| Deferred income taxes                                                         |                                         |    | 1,932     |   |         |   | 28,355 |   |
| Other long term liabilities                                                   |                                         |    | 71,983    |   |         |   | 68,233 |   |
| Long-term debt                                                                |                                         |    | 1,134,681 |   |         |   | 1,114,186 |   |
|                                                                          |                                         |    |      |   |         |   |   |   |
| Commitments and contingencies                                                 |                                         |    |      |   |         |   |   |   |
|                                                                          |                                         |    |      |   |         |   |   |   |
| Stockholder's Equity (Deficit):                                               |                                         |    |      |   |         |   |   |   |
| Preferred stock $0.01 par, 100 shares authorized, none issued and outstanding |                                         |    | -         |   |         |   | - |   |
| Common stock $0.01 par, 100 shares authorized, issued and outstanding         |                                         |    | -         |   |         |   | - |   |
| Additional paid-in-capital                                                    |                                         |    | 209,926   |   |         |   | 209,908 |   |
| Accumulated deficit                                                           |                                         |    | (510,510  | )      |         |   | (446,993 | ) |
| Accumulated other comprehensive loss, net of tax                              |                                         |    | (4,345    | )      |         |   | (5,543 | ) |
|      Total stockholder's deficit                     |                                         |    | (304,929  | )      |         |   | (242,628 | ) |
|                                                                          |                                         | $       | 1,044,312 |   |         | $      | 1,104,053 |   |

----

|                                                                        |   | For the six months ended |    |
|-----------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                        |   | July 4,                  |    |   | June 28, |   |
|                                                                        |   | 2009                     |    |   | 2008 |   |
|                                                                        |   | (Amounts in thousands)   |    |
| Cash flows from operating activities:                                       |   |                     |    |   |   |   |
| Net loss                                                                    |   | $                        | (63,517 | ) |   | $ | (41,335 | ) |
| Adjustments to reconcile net loss to cash                                   |   |                     |    |   |   |   |   |   |
|    used in operating activities:                             |   |                     |    |   |   |   |   |   |
| Depreciation and amortization expense                                       |   |                     | 28,084  |   |   |   | 30,680 |   |
| Non-cash interest expense, net                                              |   |                     | 4,115   |   |   |   | 3,580 |   |
| Loss on foreign currency transactions                                       |   |                     | 158     |   |   |   | 495 |   |
| (Gain) loss on sale of assets                                               |   |                     | (4      | ) |   |   | 837 |   |
| Write-off of debt financing costs                                           |   |                     | -       |   |   |   | 14,047 |   |
| Deferred income taxes                                                       |   |                     | (12,297 | ) |   |   | (27,217 | ) |
| Changes in operating assets and liabilities:                                |   |                     |    |   |   |   |   |   |
| Accounts receivable, net                                                    |   |                     | (45,450 | ) |   |   | (66,672 | ) |
| Inventories                                                                 |   |                     | 29,994  |   |   |   | 1,149 |   |
| Prepaid expenses and other current assets                                   |   |                     | (3,638  | ) |   |   | (5,171 | ) |
| Accounts payable                                                            |   |                     | 1,226   |   |   |   | 35,725 |   |
| Accrued expenses and taxes                                                  |   |                     | 10,522  |   |   |   | (1,981 | ) |
| Cash payments on restructuring liabilities                                  |   |                     | (3,913  | ) |   |   | (6,245 | ) |
| Other                                                                       |   |                     | (234    | ) |   |   | 154 |   |
|     Net cash used in operating activities               |   |                     | (54,954 | ) |   |   | (61,954 | ) |
| Cash flows from investing activities:                                       |   |                     |    |   |   |   |   |   |
| Capital expenditures                                                        |   |                     | (3,930  | ) |   |   | (7,039 | ) |
| Proceeds from sale of assets                                                |   |                     | 70      |   |   |   | 8,803 |   |
| Other                                                                       |   |                     | (109    | ) |   |   | (127 | ) |
|     Net cash (used in) provided by investing activities |   |                     | (3,969  | ) |   |   | 1,637 |   |
| Cash flows from financing activities:                                       |   |                     |    |   |   |   |   |   |
| Proceeds from long-term debt                                                |   |                     | -       |   |   |   | 693,504 |   |
| Net revolver borrowings                                                     |   |                     | 20,000  |   |   |   | 40,000 |   |
| Payments on long-term debt                                                  |   |                     | -       |   |   |   | (677,910 | ) |
| Debt issuance costs paid                                                    |   |                     | (25     | ) |   |   | (24,843 | ) |
| Equity contributions                                                        |   |                     | -       |   |   |   | 30,000 |   |
| Equity repurchases                                                          |   |                     | -       |   |   |   | (793 | ) |
|     Net cash provided by financing activities           |   |                     | 19,975  |   |   |   | 59,958 |   |
| Impact of exchange rate movements on cash                                   |   |                     | 141     |   |   |   | (214 | ) |
| Net decrease in cash and cash equivalents                                   |   |                     | (38,807 | ) |   |   | (573 | ) |
| Cash and cash equivalents at the beginning of the period                    |   |                     | 58,289  |   |   |   | 52,053 |   |
| Cash and cash equivalents at the end of the period                          |   | $                        | 19,482  |   |   | $ | 51,480 |   |

----

----

----

|    |          |                                                                                                      |
|--------------|---------------|-----------------------------------------------------------------------------------------------------------|
|         | •  | Significant under-performance relative to historical or projected future operating results;               |
|         |          |                                                                                                      |
|         | •  | Significant negative industry or economic trends;                                                         |
|         |          |                                                                                                      |
|         | •  | Significant decline in its stock valuation for a sustained period; and                                    |
|         |          |                                                                                                      |
|         | •  | Significant changes in the manner of its use of acquired assets or the strategy for its overall business. |

|                      |   | (Amounts in thousands) |    |
|---------------------------|--------|------------------------|---------|
|                      |   | July 4, 2009           |    |   | December 31, 2008 |   |
| Windows and Doors         |   | $                      | 71,729  |   |   | $ | 70,683 |   |
| Siding, Fencing and Stone |   |                   | 320,107 |   |   |   | 320,096 |   |
|                      |   | $                      | 391,836 |   |   | $ | 390,779 |   |

----

| ·   | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3: Observable inputs that reflect the reporting entity’s own assumptions. |
|--------------------|--------------------------------------------------------------------------------------------|

| (Amounts in Thousands)                                     |   |   |    |   |                                               |   |    |                               |   |   |                          |   |
|------------------------------------------------------------|--------|--------|---------|--------|----------------------------------------------------|--------|---------|------------------------------------|--------|--------|-------------------------------|--------|
|                                                       |   |   |    |   | Quoted Pricesin Active Marketsfor Identical Assets |   |    | Significant Other ObservableInputs |   |   | SignificantUnobservableInputs |   |
|                                                       |   |   |    |   |                                               |   |    |                               |   |
|                                                       |   |   |    |   |                                               |   |    |                               |   |
| Description                                                |   | Total  |    |   | (Level 1)                                          |   |    | (Level 2)                          |   |   | (Level 3)                     |   |
| Assets:                                                    |   |   |    |   |                                               |   |    |                               |   |   |                          |   |
|      Money market funds           |   | $      | -       |   |                                               | $      | -       |                               |   | $      | -                             |   |   | $ | - |   |
| Liabilities:                                               |   |   |    |   |                                               |   |    |                               |   |   |                          |   |   |   |   |   |
|      Senior Subordinated Notes-9% |   | $      | 66,600  |   |                                               | $      | 66,600  |                               |   |   | -                             |   |   |   | - |   |
|      Senior Secured Notes-11.75%  |   |   | 451,500 |   |                                               |   | 451,500 |                               |   |   | -                             |   |   |   | - |   |
| As of July 4, 2009                                         |   | $      | 518,100 |   |                                               | $      | 518,100 |                               |   | $      | -                             |   |   | $ | - |   |
|                                                       |   |   |    |   |                                               |   |    |                               |   |   |                          |   |   |   |   |   |
| Assets:                                                    |   |   |    |   |                                               |   |    |                               |   |   |                          |   |   |   |   |   |
|      Money market funds           |   | $      | 29,197  |   |                                               | $      | 29,197  |                               |   | $      | -                             |   |   | $ | - |   |
| Liabilities:                                               |   |   |    |   |                                               |   |    |                               |   |   |                          |   |   |   |   |   |
|      Senior Subordinated Notes-9% |   | $      | 86,400  |   |                                               | $      | 86,400  |                               |   |   | -                             |   |   |   | - |   |
|      Senior Secured Notes-11.75%  |   |   | 378,000 |   |                                               |   | 378,000 |                               |   |   | -                             |   |   |   | - |   |
| As of December 31, 2008                                    |   | $      | 464,400 |   |                                               | $      | 464,400 |                               |   | $      | -                             |   |   | $ | - |   |

----

----

----

|                                       |   | (Amounts in thousands) |   |
|--------------------------------------------|--------|------------------------|--------|
| Other current assets, net of cash acquired |   | $                      | 566    |   |
| Inventories                                |   |                   | 307    |   |
| Property, plant and equipment              |   |                   | 1,863  |   |
| Goodwill                                   |   |                   | 1,584  |   |
| Current liabilities                        |   |                   | (706   | ) |
| Purchase price, net of cash acquired       |   | $                      | 3,614  |   |

|                    |   | Average      |   |   |                   |   |    |         |   |   |         |   |
|-------------------------|--------|--------------|--------|--------|------------------------|--------|---------|--------------|--------|--------|--------------|--------|
|                    |   | Amortization |   |   |                   |   |    |         |   |   |         |   |
|                    |   | Period       |   |   |                   |   |    | Accumulated  |   |   | Net Carrying |   |
|                    |   | (in Years)   |   |   | Cost                   |   |    | Amortization |   |   | Value        |   |
|                    |   |         |   |   | (Amounts in thousands) |   |    |         |   |
| As of July 4, 2009      |   |         |   |   |                   |   |    |         |   |   |         |   |
| Patents                 |   |         | 14     |   |                   | $      | 12,770  |         |   | $      | (5,007       | )      |   | $ | 7,763 |   |
| Trademarks/tradenames   |   |         | 15     |   |                   |   | 85,644  |         |   |   | (18,525      | )      |   |   | 67,119 |   |
| Customer relationships  |   |         | 13     |   |                   |   | 158,158 |         |   |   | (50,050      | )      |   |   | 108,108 |   |
| Other                   |   |         | 4      |   |                   |   | 1,630   |         |   |   | (724         | )      |   |   | 906 |   |
| Total intangible assets |   |         |   |   |                   | $      | 258,202 |         |   | $      | (74,306      | )      |   | $ | 183,896 |   |
|                    |   |         |   |   |                   |   |    |         |   |   |         |   |   |   |   |   |
| As of December 31, 2008 |   |         |   |   |                   |   |    |         |   |   |         |   |   |   |   |   |
| Patents                 |   |         | 14     |   |                   | $      | 12,770  |         |   | $      | (4,533       | )      |   | $ | 8,237 |   |
| Trademarks/tradenames   |   |         | 15     |   |                   |   | 85,644  |         |   |   | (15,578      | )      |   |   | 70,066 |   |
| Customer relationships  |   |         | 13     |   |                   |   | 158,158 |         |   |   | (43,850      | )      |   |   | 114,308 |   |
| Other                   |   |         | 4      |   |                   |   | 1,520   |         |   |   | (527         | )      |   |   | 993 |   |
| Total intangible assets |   |         |   |   |                   | $      | 258,092 |         |   | $      | (64,488      | )      |   | $ | 193,604 |   |

----

|                                    |   | Three Months Ended     |   |   | Six Months Ended |   |
|-----------------------------------------|--------|------------------------|--------|--------|------------------|--------|
|                                    |   | July 4, 2009           |   |   | June 28, 2008    |   |   | July 4, 2009 |   |   | June 28, 2008 |   |
|                                    |   | (Amounts in thousands) |   |
|                                    |   |                   |   |   |             |   |   |   |   |   |   |   |
| Net loss                                |   | $                      | (7,979 | )      |             | $      | (19,493 | ) |   | $ | (63,517 | ) |   | $ | (41,335 | ) |
| Foreign currency translation adjustment |   |                   | 1,605  |   |             |   | 594 |   |   |   | 1,197 |   |   |   | (579 | ) |
|                                    |   |                   |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                      |   | $                      | (6,374 | )      |             | $      | (18,899 | ) |   | $ | (62,320 | ) |   | $ | (41,914 | ) |

|                                                                                                                      |   | July 4, 2009           |      |   | December 31, 2008 |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|------------------------|-----------|--------|-------------------|--------|
|                                                                                                                      |   | (Amounts in thousands) |      |
|                                                                                                                      |   |                   |      |   |              |   |
|   Senior secured asset based revolving credit facility                                                          |   | $                      | 80,000    |   |              | $      | 60,000 |   |
|   9% Senior subordinated notes due 2012, including    unamortized premium of $126 and $146  |   |                   | 360,126   |   |              |   | 360,146 |   |
|   11.75% Senior secured notes due 2013, net of    unamortized discount of $5,445 and $5,960 |   |                   | 694,555   |   |              |   | 694,040 |   |
|                                                                                                                      |   | $                      | 1,134,681 |   |              | $      | 1,114,186 |   |

----

----

----

| July 3, 2010                 |   | $      | -         |   |
|------------------------------|--------|--------|-----------|--------|
| July 2, 2011                 |   |   | -         |   |
| June 30, 2012                |   |   | 360,126   |   |
| June 29, 2013                |   |   | 774,555   |   |
| June 28, 2014 and thereafter |   |   | -         |   |
|                         |   | $      | 1,134,681 |   |

|                           |   | For the sixmonths endedJuly 4, 2009 |   |   | For the sixmonths endedJune 28, 2008 |   |
|--------------------------------|--------|-------------------------------------|--------|--------|--------------------------------------|--------|
|                           |   | (Amounts in thousands)              |   |
|                           |   |                                |   |   |                                 |   |
| Service cost                   |   | $                                   | 88     |   |                                 | $      | 97 |   |
| Interest cost                  |   |                                | 1,000  |   |                                 |   | 1,011 |   |
| Expected return on plan assets |   |                                | (732   | )      |                                 |   | (1,101 | ) |
| Amortization of loss           |   |                                | 252    |   |                                 |   | - |   |
| Net periodic expense           |   | $                                   | 608    |   |                                 | $      | 7 |   |

----

|                                                         |   | (Amounts in thousands) |   |
|--------------------------------------------------------------|--------|------------------------|--------|
|                                                         |   | July 4, 2009           |   |   | December 31, 2008 |   |
|   Product claim liabilities                        |   | $                      | 3,611  |   |   | $ | 3,718 |   |
|   Multi-employer pension plan withdrawal liability |   |                   | 3,392  |   |   |   | 3,492 |   |
|   Other                                            |   |                   | 577    |   |   |   | 584 |   |
|                                                         |   | $                      | 7,580  |   |   | $ | 7,794 |   |

|                                               |   | For the sixmonths endedJuly 4, 2009 |   |   | For the sixmonths endedJune 28, 2008 |   |
|----------------------------------------------------|--------|-------------------------------------|--------|--------|--------------------------------------|--------|
|                                               |   | (Amounts in thousands)              |   |
| Balance, beginning of period                       |   | $                                   | 45,653 |   |                                 | $      | 49,899 |   |
| Warranty expense during period                     |   |                                | 6,527  |   |                                 |   | 2,667 |   |
| Settlements made during period                     |   |                                | (7,976 | )      |                                 |   | (4,417 | ) |
| Liability assumed with Pacific Windows acquisition |   |                                | -      |   |                                 |   | 644 |   |
| Balance, end of period                             |   | $                                   | 44,204 |   |                                 | $      | 48,793 |   |

----

|                               |   | July 4, 2009           |   |   | December 31, 2008 |   |
|------------------------------------|--------|------------------------|--------|--------|-------------------|--------|
|                               |   | (Amounts in thousands) |   |
|                               |   |                   |   |   |              |   |
| Insurance                          |   | $                      | 5,248  |   |              | $      | 5,169 |   |
| Employee compensation and benefits |   |                   | 5,790  |   |              |   | 6,705 |   |
| Sales and marketing                |   |                   | 19,758 |   |              |   | 18,023 |   |
| Product warranty                   |   |                   | 10,276 |   |              |   | 12,069 |   |
| Short-term product claim liability |   |                   | 2,321  |   |              |   | 2,321 |   |
| Accrued freight                    |   |                   | 1,537  |   |              |   | 748 |   |
| Interest                           |   |                   | 17,675 |   |              |   | 17,238 |   |
| Accrued severance                  |   |                   | 336    |   |              |   | 471 |   |
| Accrued pension                    |   |                   | 1,810  |   |              |   | 1,810 |   |
| Accrued deferred compensation      |   |                   | 1,886  |   |              |   | 1,886 |   |
| Accrued taxes                      |   |                   | 2,602  |   |              |   | 1,188 |   |
| Other                              |   |                   | 10,403 |   |              |   | 8,676 |   |
|                               |   | $                      | 79,642 |   |              | $      | 76,304 |   |

|                                        |   | July 4, 2009           |   |   | December 31, 2008 |   |
|---------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|
|                                        |   | (Amounts in thousands) |   |
|                                        |   |                   |   |   |              |   |
| Insurance                                   |   | $                      | 3,522  |   |              | $      | 3,697 |   |
| Pension liabilities                         |   |                   | 10,950 |   |              |   | 10,744 |   |
| Multi-employer pension withdrawal liability |   |                   | 3,392  |   |              |   | 3,492 |   |
| Product warranty                            |   |                   | 33,928 |   |              |   | 33,584 |   |
| Long-term product claim liability           |   |                   | 1,290  |   |              |   | 1,396 |   |
| Long-term deferred compensation             |   |                   | 3,682  |   |              |   | 3,416 |   |
| Liabilities for tax uncertainties           |   |                   | 10,023 |   |              |   | 7,806 |   |
| Other                                       |   |                   | 5,196  |   |              |   | 4,098 |   |
|                                        |   | $                      | 71,983 |   |              | $      | 68,233 |   |

----

| (Amounts in thousands)      |   | Accrued as of     |   |   | Adjustments |   |   | Cash payments |   |   | Expensed    |   |   | Accrued as of |   |
|-----------------------------|--------|-------------------|--------|--------|-------------|--------|--------|---------------|--------|--------|-------------|--------|--------|---------------|--------|
|                        |   | December 31, 2008 |   |   | during 2009 |   |   | during 2009   |   |   | during 2009 |   |   | July 4, 2009  |   |
| Valencia                    |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |
| Severance costs             |   | $                 | 243    |   |        | $      | -      |          |   | $      | (362        | )      |   | $             | 119    |   |   | $ | - |   |
| Equipment removal and other |   |              | -      |   |        |   | -      |          |   |   | (838        | )      |   |          | 838    |   |   |   | - |   |
|                        |   | $                 | 243    |   |        | $      | -      |          |   | $      | (1,200      | )      |   | $             | 957    |   |   | $ | - |   |
|                        |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Hammonton                   |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Severance costs             |   | $                 | 217    |   |        | $      | (36    | )             |   | $      | (869        | )      |   | $             | 688    |   |   | $ | - |   |
| Other termination benefits  |   |              | -      |   |        |   | 136    |          |   |   | (136        | )      |   |          | -      |   |   |   | - |   |
| Contract terminations       |   |              | -      |   |        |   | 312    |          |   |   | (231        | )      |   |          | 2,472  |   |   |   | 2,553 |   |
| Equipment removal and other |   |              | -      |   |        |   | -      |          |   |   | (170        | )      |   |          | 170    |   |   |   | - |   |
|                        |   | $                 | 217    |   |        | $      | 412    |          |   | $      | (1,406      | )      |   | $             | 3,330  |   |   | $ | 2,553 |   |
|                        |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Phoenix                     |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Severance costs             |   | $                 | 11     |   |        | $      | -      |          |   | $      | (43         | )      |   | $             | 32     |   |   | $ | - |   |
| Other termination benefits  |   |              | -      |   |        |   | 16     |          |   |   | (16         | )      |   |          | -      |   |   |   | - |   |
| Contract terminations       |   |              | -      |   |        |   | -      |          |   |   | (306        | )      |   |          | 1,402  |   |   |   | 1,096 |   |
| Equipment removal and other |   |              | -      |   |        |   | -      |          |   |   | (184        | )      |   |          | 184    |   |   |   | - |   |
|                        |   | $                 | 11     |   |        | $      | 16     |          |   | $      | (549        | )      |   | $             | 1,618  |   |   | $ | 1,096 |   |
|                        |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Kearney                     |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Severance costs             |   | $                 | -      |   |        | $      | -      |          |   | $      | (471        | )      |   | $             | 634    |   |   |   | 163 |   |
| Equipment removal and other |   |              | -      |   |        |   | -      |          |   |   | (128        | )      |   |          | 128    |   |   |   | - |   |
|                        |   | $                 | -      |   |        | $      | -      |          |   | $      | (599        | )      |   | $             | 762    |   |   | $ | 163 |   |
|                        |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Tupelo                      |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Severance costs             |   | $                 | -      |   |        | $      | -      |          |   | $      | (115        | )      |   | $             | 148    |   |   | $ | 33 |   |
| Equipment removal and other |   |              | -      |   |        |   | -      |          |   |   | (34         | )      |   |          | 34     |   |   |   | - |   |
|                        |   | $                 | -      |   |        | $      | -      |          |   | $      | (149        | )      |   | $             | 182    |   |   | $ | 33 |   |
|                        |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Auburn                      |   |              |   |   |        |   |   |          |   |   |        |   |   |          |   |   |   |   |   |   |
| Severance costs             |   | $                 | -      |   |        | $      | -      |          |   | $      | -           |   |   | $             | 140    |   |   | $ | 140 |   |
| Contract terminations       |   |              | -      |   |        |   |   |          |   |   | -           |   |   |          | -      |   |   |   | - |   |
| Equipment removal and other |   |              | -      |   |        |   | -      |          |   |   | (10         | )      |   |          | 10     |   |   |   | - |   |
|                        |   | $                 | -      |   |        | $      | -      |          |   | $      | (10         | )      |   | $             | 150    |   |   | $ | 140 |   |

----

----

|                                         |   | Stock Options |    |   | Weighted-Average Exercise Price |   |   | Weighted-Average Remaining Contractual Term (Years) |   |
|----------------------------------------------|--------|---------------|---------|--------|---------------------------------|--------|--------|-----------------------------------------------------|--------|
|                                         |   |          |    |   |                            |   |   |                                                |   |
| Balance at January 1, 2009                   |   |          | 314,694 |   |                            | $      | 48.79  |                                                |   |   | 7.83 |   |
|     Granted              |   |          | -       |   |                            |   | -      |                                                |   |   | - |   |
|     Forfeited or expired |   |          | (6,900  | )      |                            | $      | 44.20  |                                                |   |   | - |   |
| Balance at July 4, 2009                      |   |          | 307,794 |   |                            | $      | 48.89  |                                                |   |   | 7.24 |   |

----

|                                       |   | Common StockShares Owned byManagement |    |
|--------------------------------------------|--------|---------------------------------------|---------|
| Balance at January 1, 2009                 |   |                                  | 642,895 |   |
|     Shares issued      |   |                                  | -       |   |
|     Shares repurchased |   |                                  | -       |   |
| Balance at July 4, 2009                    |   |                                  | 642,895 |   |

|                       |   | Three months ended     |      |   | Six months ended       |   |
|----------------------------|--------|------------------------|-----------|--------|------------------------|--------|
|                       |   | July 4, 2009           |      |   | June 28, 2008          |   |   | July 4, 2009 |   |   | June 28, 2008 |   |
|                       |   | (Amounts in thousands) |      |   | (Amounts in thousands) |   |
| Net Sales                  |   |                   |      |   |                   |   |   |   |   |   |   |   |
| Siding, Fencing, and Stone |   | $                      | 165,613   |   |                   | $      | 209,250 |   |   | $ | 274,073 |   |   | $ | 356,310 |   |
| Windows and Doors          |   |                   | 94,963    |   |                   |   | 132,030 |   |   |   | 169,254 |   |   |   | 241,343 |   |
|                       |   | $                      | 260,576   |   |                   | $      | 341,280 |   |   | $ | 443,327 |   |   | $ | 597,653 |   |
|                       |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Earnings (loss)  |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Siding, Fencing, and Stone |   | $                      | 27,758    |   |                   | $      | 21,971 |   |   | $ | 20,236 |   |   | $ | 17,770 |   |
| Windows and Doors          |   |                   | (3,005    | )      |                   |   | 1,235 |   |   |   | (24,682 | ) |   |   | (6,321 | ) |
| Unallocated                |   |                   | (2,928    | )      |                   |   | (2,333 | ) |   |   | (6,537 | ) |   |   | (4,860 | ) |
|                       |   | $                      | 21,825    |   |                   | $      | 20,873 |   |   | $ | (10,983 | ) |   | $ | 6,589 |   |
|                       |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | As of                  |      |   | As of                  |   |   |   |   |   |   |   |   |   |
|                       |   | July 4, 2009           |      |   | December 31, 2008      |   |   |   |   |   |   |   |   |   |
| Total assets               |   |                   |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Siding, Fencing, and Stone |   | $                      | 646,837   |   |                   | $      | 655,183 |   |   |   |   |   |   |   |   |   |
| Windows and Doors          |   |                   | 343,047   |   |                   |   | 357,471 |   |   |   |   |   |   |   |   |   |
| Unallocated                |   |                   | 54,428    |   |                   |   | 91,399 |   |   |   |   |   |   |   |   |   |
|                       |   | $                      | 1,044,312 |   |                   | $      | 1,104,053 |   |   |   |   |   |   |   |   |   |

----

| PLY GEM HOLDINGS, INC. AND SUBSIDIARIES              |   |
|------------------------------------------------------|--------|
| CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS     |   |
| For the three months ended July 4, 2009              |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | Guarantor |   |   | Issuer |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                 |   | Ply Gem |   |   | Ply Gem |   |   | Guarantor |   |   | Guarantor |   |   | Consolidating |   |   |   |   |
|                                                 |   | Holdings, Inc. |   |   | Industries, Inc. |   |   | Subsidiaries |   |   | Subsidiary |   |   | Adjustments |   |   | Consolidated |   |
|                                                 |   | (Amounts in thousands) |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                            |   | $ | - |   |   | $ | - |   |   | $ | 245,790 |   |   | $ | 14,786 |   |   | $ | - |   |   | $ | 260,576 |   |
| Costs and expenses:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold                                |   |   | - |   |   |   | - |   |   |   | 187,498 |   |   |   | 10,333 |   |   |   | - |   |   |   | 197,831 |   |
| Selling, general and                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     administrative expenses      |   |   | - |   |   |   | 2,925 |   |   |   | 30,318 |   |   |   | 2,765 |   |   |   | - |   |   |   | 36,008 |   |
| Intercompany administrative                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     charges                      |   |   | - |   |   |   | - |   |   |   | 2,461 |   |   |   | - |   |   |   | (2,461 | ) |   |   | - |   |
| Amortization of intangible assets                    |   |   | - |   |   |   | 3 |   |   |   | 4,909 |   |   |   | - |   |   |   | - |   |   |   | 4,912 |   |
| Total costs and expenses                             |   |   | - |   |   |   | 2,928 |   |   |   | 225,186 |   |   |   | 13,098 |   |   |   | (2,461 | ) |   |   | 238,751 |   |
| Operating earnings (loss)                            |   |   | - |   |   |   | (2,928 | ) |   |   | 20,604 |   |   |   | 1,688 |   |   |   | 2,461 |   |   |   | 21,825 |   |
| Foreign currency loss                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (70 | ) |   |   | - |   |   |   | (70 | ) |
| Intercompany interest                                |   |   | - |   |   |   | 30,272 |   |   |   | (29,842 | ) |   |   | (430 | ) |   |   | - |   |   |   | - |   |
| Interest expense                                     |   |   | - |   |   |   | (33,054 | ) |   |   | (70 | ) |   |   | - |   |   |   | - |   |   |   | (33,124 | ) |
| Interest income                                      |   |   | - |   |   |   | 9 |   |   |   | 73 |   |   |   | 1 |   |   |   | - |   |   |   | 83 |   |
| Intercompany administrative income                   |   |   | - |   |   |   | 2,461 |   |   |   | - |   |   |   | - |   |   |   | (2,461 | ) |   |   | - |   |
| Income (loss) before equity in                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    subsidiaries' income (loss)        |   |   | - |   |   |   | (3,240 | ) |   |   | (9,235 | ) |   |   | 1,189 |   |   |   | - |   |   |   | (11,286 | ) |
| Equity in subsidiaries' income (loss)                |   |   | (7,979 | ) |   |   | (5,688 | ) |   |   | - |   |   |   | - |   |   |   | 13,667 |   |   |   | - |   |
| Income (loss) before provision                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (benefit) for income taxes         |   |   | (7,979 | ) |   |   | (8,928 | ) |   |   | (9,235 | ) |   |   | 1,189 |   |   |   | 13,667 |   |   |   | (11,286 | ) |
| Provision (benefit) for income taxes                 |   |   | - |   |   |   | (949 | ) |   |   | (2,683 | ) |   |   | 325 |   |   |   | - |   |   |   | (3,307 | ) |
| Net income (loss)                                    |   | $ | (7,979 | ) |   | $ | (7,979 | ) |   | $ | (6,552 | ) |   | $ | 864 |   |   | $ | 13,667 |   |   | $ | (7,979 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss):                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Foreign currency translation adjustments |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,605 |   |   |   | - |   |   |   | 1,605 |   |
| Total comprehensive income (loss)                    |   | $ | (7,979 | ) |   | $ | (7,979 | ) |   | $ | (6,552 | ) |   | $ | 2,469 |   |   | $ | 13,667 |   |   | $ | (6,374 | ) |

----

| PLY GEM HOLDINGS, INC. AND SUBSIDIARIES              |   |
|------------------------------------------------------|--------|
| CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS     |   |
| For the three months ended June 28, 2008             |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | Guarantor |   |   | Issuer |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                 |   | Ply Gem |   |   | Ply Gem |   |   | Guarantor |   |   | Guarantor |   |   | Consolidating |   |   |   |   |
|                                                 |   | Holdings, Inc. |   |   | Industries, Inc. |   |   | Subsidiaries |   |   | Subsidiary |   |   | Adjustments |   |   | Consolidated |   |
|                                                 |   | (Amounts in thousands) |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                            |   | $ | - |   |   | $ | - |   |   | $ | 319,358 |   |   | $ | 21,922 |   |   | $ | - |   |   | $ | 341,280 |   |
| Costs and expenses:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold                                |   |   | - |   |   |   | - |   |   |   | 258,481 |   |   |   | 14,445 |   |   |   | - |   |   |   | 272,926 |   |
| Selling, general and                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     administrative expenses      |   |   | - |   |   |   | 2,333 |   |   |   | 36,158 |   |   |   | 4,078 |   |   |   | - |   |   |   | 42,569 |   |
| Intercompany administrative                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     charges                      |   |   | - |   |   |   | - |   |   |   | 3,195 |   |   |   | - |   |   |   | (3,195 | ) |   |   | - |   |
| Amortization of intangible assets                    |   |   | - |   |   |   | - |   |   |   | 4,912 |   |   |   | - |   |   |   | - |   |   |   | 4,912 |   |
| Total costs and expenses                             |   |   | - |   |   |   | 2,333 |   |   |   | 302,746 |   |   |   | 18,523 |   |   |   | (3,195 | ) |   |   | 320,407 |   |
| Operating earnings (loss)                            |   |   | - |   |   |   | (2,333 | ) |   |   | 16,612 |   |   |   | 3,399 |   |   |   | 3,195 |   |   |   | 20,873 |   |
| Foreign currency gain                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56 |   |   |   | - |   |   |   | 56 |   |
| Intercompany interest                                |   |   | - |   |   |   | 18,351 |   |   |   | (18,233 | ) |   |   | (118 | ) |   |   | - |   |   |   | - |   |
| Interest expense                                     |   |   | - |   |   |   | (50,823 | ) |   |   | 13 |   |   |   | (255 | ) |   |   | - |   |   |   | (51,065 | ) |
| Interest income                                      |   |   | - |   |   |   | 86 |   |   |   | 3 |   |   |   | 18 |   |   |   | - |   |   |   | 107 |   |
| Intercompany administrative income                   |   |   | - |   |   |   | 3,195 |   |   |   | - |   |   |   | - |   |   |   | (3,195 | ) |   |   | - |   |
| Income (loss) before equity in                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    subsidiaries' income (loss)        |   |   | - |   |   |   | (31,524 | ) |   |   | (1,605 | ) |   |   | 3,100 |   |   |   | - |   |   |   | (30,029 | ) |
| Equity in subsidiaries' income (loss)                |   |   | (19,493 | ) |   |   | 970 |   |   |   | - |   |   |   | - |   |   |   | 18,523 |   |   |   | - |   |
| Income (loss) before provision                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (benefit) for income taxes         |   |   | (19,493 | ) |   |   | (30,554 | ) |   |   | (1,605 | ) |   |   | 3,100 |   |   |   | 18,523 |   |   |   | (30,029 | ) |
| Provision (benefit) for income taxes                 |   |   | - |   |   |   | (11,061 | ) |   |   | (498 | ) |   |   | 1,023 |   |   |   | - |   |   |   | (10,536 | ) |
| Net income (loss)                                    |   | $ | (19,493 | ) |   | $ | (19,493 | ) |   | $ | (1,107 | ) |   | $ | 2,077 |   |   | $ | 18,523 |   |   | $ | (19,493 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss):                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Foreign currency translation adjustments |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 594 |   |   |   | - |   |   |   | 594 |   |
| Total comprehensive income (loss)                    |   | $ | (19,493 | ) |   | $ | (19,493 | ) |   | $ | (1,107 | ) |   | $ | 2,671 |   |   | $ | 18,523 |   |   | $ | (18,899 | ) |

----

| PLY GEM HOLDINGS, INC. AND SUBSIDIARIES              |   |
|------------------------------------------------------|--------|
| CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS     |   |
| For the six months ended July 4, 2009                |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | Guarantor |   |   | Issuer |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                 |   | Ply Gem |   |   | Ply Gem |   |   | Guarantor |   |   | Guarantor |   |   | Consolidating |   |   |   |   |
|                                                 |   | Holdings, Inc. |   |   | Industries, Inc. |   |   | Subsidiaries |   |   | Subsidiary |   |   | Adjustments |   |   | Consolidated |   |
|                                                 |   | (Amounts in thousands) |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                            |   | $ | - |   |   | $ | - |   |   | $ | 419,413 |   |   | $ | 23,914 |   |   | $ | - |   |   | $ | 443,327 |   |
| Costs and expenses:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold                                |   |   | - |   |   |   | - |   |   |   | 350,090 |   |   |   | 17,432 |   |   |   | - |   |   |   | 367,522 |   |
| Selling, general and                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     administrative expenses      |   |   | - |   |   |   | 6,534 |   |   |   | 65,065 |   |   |   | 5,371 |   |   |   | - |   |   |   | 76,970 |   |
| Intercompany administrative                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     charges                      |   |   | - |   |   |   | - |   |   |   | 4,198 |   |   |   | - |   |   |   | (4,198 | ) |   |   | - |   |
| Amortization of intangible assets                    |   |   | - |   |   |   | 3 |   |   |   | 9,815 |   |   |   | - |   |   |   | - |   |   |   | 9,818 |   |
| Total costs and expenses                             |   |   | - |   |   |   | 6,537 |   |   |   | 429,168 |   |   |   | 22,803 |   |   |   | (4,198 | ) |   |   | 454,310 |   |
| Operating earnings (loss)                            |   |   | - |   |   |   | (6,537 | ) |   |   | (9,755 | ) |   |   | 1,111 |   |   |   | 4,198 |   |   |   | (10,983 | ) |
| Foreign currency loss                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (158 | ) |   |   | - |   |   |   | (158 | ) |
| Intercompany interest                                |   |   | - |   |   |   | 60,623 |   |   |   | (59,684 | ) |   |   | (939 | ) |   |   | - |   |   |   | - |   |
| Interest expense                                     |   |   | - |   |   |   | (66,810 | ) |   |   | (70 | ) |   |   | - |   |   |   | - |   |   |   | (66,880 | ) |
| Interest income                                      |   |   | - |   |   |   | 18 |   |   |   | 128 |   |   |   | 2 |   |   |   | - |   |   |   | 148 |   |
| Intercompany administrative income                   |   |   | - |   |   |   | 4,198 |   |   |   | - |   |   |   | - |   |   |   | (4,198 | ) |   |   | - |   |
| Income (loss) before equity in                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    subsidiaries' income (loss)        |   |   | - |   |   |   | (8,508 | ) |   |   | (69,381 | ) |   |   | 16 |   |   |   | - |   |   |   | (77,873 | ) |
| Equity in subsidiaries' income (loss)                |   |   | (63,517 | ) |   |   | (56,577 | ) |   |   | - |   |   |   | - |   |   |   | 120,094 |   |   |   | - |   |
| Income (loss) before provision                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (benefit) for income taxes         |   |   | (63,517 | ) |   |   | (65,085 | ) |   |   | (69,381 | ) |   |   | 16 |   |   |   | 120,094 |   |   |   | (77,873 | ) |
| Provision (benefit) for income taxes                 |   |   | - |   |   |   | (1,568 | ) |   |   | (12,792 | ) |   |   | 4 |   |   |   | - |   |   |   | (14,356 | ) |
| Net income (loss)                                    |   | $ | (63,517 | ) |   | $ | (63,517 | ) |   | $ | (56,589 | ) |   | $ | 12 |   |   | $ | 120,094 |   |   | $ | (63,517 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss):                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Foreign currency translation adjustments |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,197 |   |   |   | - |   |   |   | 1,197 |   |
| Total comprehensive income (loss)                    |   | $ | (63,517 | ) |   | $ | (63,517 | ) |   | $ | (56,589 | ) |   | $ | 1,209 |   |   | $ | 120,094 |   |   | $ | (62,320 | ) |

----

| PLY GEM HOLDINGS, INC. AND SUBSIDIARIES              |   |
|------------------------------------------------------|--------|
| CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS     |   |
| For the six months ended June 28, 2008               |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   | Guarantor |   |   | Issuer |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                 |   | Ply Gem |   |   | Ply Gem |   |   | Guarantor |   |   | Guarantor |   |   | Consolidating |   |   |   |   |
|                                                 |   | Holdings, Inc. |   |   | Industries, Inc. |   |   | Subsidiaries |   |   | Subsidiary |   |   | Adjustments |   |   | Consolidated |   |
|                                                 |   | (Amounts in thousands) |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                            |   | $ | - |   |   | $ | - |   |   | $ | 556,054 |   |   | $ | 41,599 |   |   | $ | - |   |   | $ | 597,653 |   |
| Costs and expenses:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of products sold                                |   |   | - |   |   |   | - |   |   |   | 470,772 |   |   |   | 28,035 |   |   |   | - |   |   |   | 498,807 |   |
| Selling, general and                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     administrative expenses      |   |   | - |   |   |   | 4,860 |   |   |   | 69,543 |   |   |   | 8,028 |   |   |   | - |   |   |   | 82,431 |   |
| Intercompany administrative                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     charges                      |   |   | - |   |   |   | - |   |   |   | 5,563 |   |   |   | - |   |   |   | (5,563 | ) |   |   | - |   |
| Amortization of intangible assets                    |   |   | - |   |   |   | - |   |   |   | 9,826 |   |   |   | - |   |   |   | - |   |   |   | 9,826 |   |
| Total costs and expenses                             |   |   | - |   |   |   | 4,860 |   |   |   | 555,704 |   |   |   | 36,063 |   |   |   | (5,563 | ) |   |   | 591,064 |   |
| Operating earnings (loss)                            |   |   | - |   |   |   | (4,860 | ) |   |   | 350 |   |   |   | 5,536 |   |   |   | 5,563 |   |   |   | 6,589 |   |
| Foreign currency loss                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (495 | ) |   |   | - |   |   |   | (495 | ) |
| Intercompany interest                                |   |   | - |   |   |   | 40,509 |   |   |   | (40,391 | ) |   |   | (118 | ) |   |   | - |   |   |   | - |   |
| Interest expense                                     |   |   | - |   |   |   | (73,512 | ) |   |   | 29 |   |   |   | (656 | ) |   |   | - |   |   |   | (74,139 | ) |
| Interest income                                      |   |   | - |   |   |   | 247 |   |   |   | 6 |   |   |   | 57 |   |   |   | - |   |   |   | 310 |   |
| Intercompany administrative income                   |   |   | - |   |   |   | 5,563 |   |   |   | - |   |   |   | - |   |   |   | (5,563 | ) |   |   | - |   |
| Income (loss) before equity in                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    subsidiaries' income (loss)        |   |   | - |   |   |   | (32,053 | ) |   |   | (40,006 | ) |   |   | 4,324 |   |   |   | - |   |   |   | (67,735 | ) |
| Equity in subsidiaries' income (loss)                |   |   | (41,335 | ) |   |   | (21,775 | ) |   |   | - |   |   |   | - |   |   |   | 63,110 |   |   |   | - |   |
| Income (loss) before provision                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (benefit) for income taxes         |   |   | (41,335 | ) |   |   | (53,828 | ) |   |   | (40,006 | ) |   |   | 4,324 |   |   |   | 63,110 |   |   |   | (67,735 | ) |
| Provision (benefit) for income taxes                 |   |   | - |   |   |   | (12,493 | ) |   |   | (15,333 | ) |   |   | 1,426 |   |   |   | - |   |   |   | (26,400 | ) |
| Net income (loss)                                    |   | $ | (41,335 | ) |   | $ | (41,335 | ) |   | $ | (24,673 | ) |   | $ | 2,898 |   |   | $ | 63,110 |   |   | $ | (41,335 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss):                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Foreign currency translation adjustments |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (579 | ) |   |   | - |   |   |   | (579 | ) |
| Total comprehensive income (loss)                    |   | $ | (41,335 | ) |   | $ | (41,335 | ) |   | $ | (24,673 | ) |   | $ | 2,319 |   |   | $ | 63,110 |   |   | $ | (41,914 | ) |

----

| PLY GEM HOLDINGS, INC. AND SUBSIDIARIES                 |   |
|---------------------------------------------------------|--------|
| CONDENSED CONSOLIDATING BALANCE SHEET                   |   |
| As of July 4, 2009                                      |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   | Guarantor |   |   | Issuer |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                    |   | Ply Gem |   |   | Ply Gem |   |   | Guarantor |   |   | Guarantor |   |   | Consolidating |   |   |   |   |
|                                                    |   | Holdings, Inc. |   |   | Industries, Inc. |   |   | Subsidiaries |   |   | Subsidiary |   |   | Adjustments |   |   | Consolidated |   |
|                                                    |   | (Amounts in thousands) |   |
| ASSETS                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Assets:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                               |   | $ | - |   |   | $ | 14,268 |   |   | $ | 3,910 |   |   | $ | 1,304 |   |   | $ | - |   |   | $ | 19,482 |   |
| Accounts receivable, net                                |   |   | - |   |   |   | - |   |   |   | 128,752 |   |   |   | 7,570 |   |   |   | - |   |   |   | 136,322 |   |
| Inventories:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Raw materials                         |   |   | - |   |   |   | - |   |   |   | 34,023 |   |   |   | 3,951 |   |   |   | - |   |   |   | 37,974 |   |
|    Work in process                       |   |   | - |   |   |   | - |   |   |   | 19,292 |   |   |   | 941 |   |   |   | - |   |   |   | 20,233 |   |
|    Finished goods                        |   |   | - |   |   |   | - |   |   |   | 33,313 |   |   |   | 2,226 |   |   |   | - |   |   |   | 35,539 |   |
|    Total inventory                       |   |   | - |   |   |   | - |   |   |   | 86,628 |   |   |   | 7,118 |   |   |   | - |   |   |   | 93,746 |   |
| Prepaid expenses and other                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    current assets                        |   |   | - |   |   |   | 2,791 |   |   |   | 19,703 |   |   |   | 611 |   |   |   | - |   |   |   | 23,105 |   |
| Deferred income taxes                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,800 |   |   |   | - |   |   |   | 2,800 |   |
|      Total current assets      |   |   | - |   |   |   | 17,059 |   |   |   | 238,993 |   |   |   | 19,403 |   |   |   | - |   |   |   | 275,455 |   |
| Investments in subsidiaries                             |   |   | (304,929 | ) |   |   | (268,455 | ) |   |   | - |   |   |   | - |   |   |   | 573,384 |   |   |   | - |   |
| Property and Equipment, at cost:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Land                                                    |   |   | - |   |   |   | - |   |   |   | 3,565 |   |   |   | 151 |   |   |   | - |   |   |   | 3,716 |   |
| Buildings and improvements                              |   |   | - |   |   |   | - |   |   |   | 34,466 |   |   |   | 884 |   |   |   | - |   |   |   | 35,350 |   |
| Machinery and equipment                                 |   |   | - |   |   |   | 1,247 |   |   |   | 249,777 |   |   |   | 6,120 |   |   |   | - |   |   |   | 257,144 |   |
|                                                    |   |   | - |   |   |   | 1,247 |   |   |   | 287,808 |   |   |   | 7,155 |   |   |   | - |   |   |   | 296,210 |   |
| Less accumulated depreciation                           |   |   | - |   |   |   | (342 | ) |   |   | (137,171 | ) |   |   | (2,939 | ) |   |   | - |   |   |   | (140,452 | ) |
| Total property and equipment, net                       |   |   | - |   |   |   | 905 |   |   |   | 150,637 |   |   |   | 4,216 |   |   |   | - |   |   |   | 155,758 |   |
| Other Assets:                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible assets, net                                  |   |   | - |   |   |   | - |   |   |   | 183,896 |   |   |   | - |   |   |   | - |   |   |   | 183,896 |   |
| Goodwill                                                |   |   | - |   |   |   | - |   |   |   | 382,472 |   |   |   | 9,364 |   |   |   | - |   |   |   | 391,836 |   |
| Intercompany note receivable                            |   |   | - |   |   |   | 1,101,760 |   |   |   | - |   |   |   | - |   |   |   | (1,101,760 | ) |   |   | - |   |
| Other                                                   |   |   | - |   |   |   | 36,464 |   |   |   | 903 |   |   |   | - |   |   |   | - |   |   |   | 37,367 |   |
|     Total other assets              |   |   | - |   |   |   | 1,138,224 |   |   |   | 567,271 |   |   |   | 9,364 |   |   |   | (1,101,760 | ) |   |   | 613,099 |   |
|                                                    |   | $ | (304,929 | ) |   | $ | 887,733 |   |   | $ | 956,901 |   |   | $ | 32,983 |   |   | $ | (528,376 | ) |   | $ | 1,044,312 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Liabilities:                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                        |   | $ | - |   |   | $ | 2,468 |   |   | $ | 54,620 |   |   | $ | 3,915 |   |   | $ | - |   |   | $ | 61,003 |   |
| Accrued expenses and taxes                              |   |   | - |   |   |   | 24,095 |   |   |   | 55,066 |   |   |   | 481 |   |   |   | - |   |   |   | 79,642 |   |
|      Total current liabilities |   |   | - |   |   |   | 26,563 |   |   |   | 109,686 |   |   |   | 4,396 |   |   |   | - |   |   |   | 140,645 |   |
| Deferred income taxes                                   |   |   | - |   |   |   | - |   |   |   | 1,932 |   |   |   | - |   |   |   | - |   |   |   | 1,932 |   |
| Intercompany note payable                               |   |   | - |   |   |   | - |   |   |   | 1,088,999 |   |   |   | 12,761 |   |   |   | (1,101,760 | ) |   |   | - |   |
| Other long term liabilities                             |   |   | - |   |   |   | 31,418 |   |   |   | 39,610 |   |   |   | 955 |   |   |   | - |   |   |   | 71,983 |   |
| Long-term debt                                          |   |   | - |   |   |   | 1,134,681 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,134,681 |   |
| Commitments and contingencies                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholder's Equity (Deficit):                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Additional paid-in-capital                              |   |   | 209,926 |   |   |   | 209,926 |   |   |   | 202,817 |   |   |   | 5,308 |   |   |   | (418,051 | ) |   |   | 209,926 |   |
| Retained earnings (accumulated deficit)                 |   |   | (510,510 | ) |   |   | (510,510 | ) |   |   | (486,143 | ) |   |   | 8,850 |   |   |   | 987,803 |   |   |   | (510,510 | ) |
| Accumulated other                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| comprehensive income (loss)                             |   |   | (4,345 | ) |   |   | (4,345 | ) |   |   | - |   |   |   | 713 |   |   |   | 3,632 |   |   |   | (4,345 | ) |
|    Total stockholder's equity (deficit)  |   |   | (304,929 | ) |   |   | (304,929 | ) |   |   | (283,326 | ) |   |   | 14,871 |   |   |   | 573,384 |   |   |   | (304,929 | ) |
|                                                    |   | $ | (304,929 | ) |   | $ | 887,733 |   |   | $ | 956,901 |   |   | $ | 32,983 |   |   | $ | (528,376 | ) |   | $ | 1,044,312 |   |

----

| PLY GEM HOLDINGS, INC. AND SUBSIDIARIES                      |   |
|--------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATING BALANCE SHEET                        |   |
| As of December 31, 2008                                      |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   | Guarantor |   |   | Issuer |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                         |   | Ply Gem |   |   | Ply Gem |   |   | Guarantor |   |   | Guarantor |   |   | Consolidating |   |   |   |   |
|                                                         |   | Holdings, Inc. |   |   | Industries, Inc. |   |   | Subsidiaries |   |   | Subsidiary |   |   | Adjustments |   |   | Consolidated |   |
|                                                         |   | (Amounts in thousands) |   |
| ASSETS                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Assets:                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                    |   | $ | - |   |   | $ | 46,181 |   |   | $ | 4,490 |   |   | $ | 7,618 |   |   | $ | - |   |   | $ | 58,289 |   |
| Accounts receivable, net                                     |   |   | - |   |   |   | - |   |   |   | 83,537 |   |   |   | 6,990 |   |   |   | - |   |   |   | 90,527 |   |
| Inventories:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Raw materials                              |   |   | - |   |   |   | - |   |   |   | 49,448 |   |   |   | 3,612 |   |   |   | - |   |   |   | 53,060 |   |
|    Work in process                            |   |   | - |   |   |   | - |   |   |   | 27,137 |   |   |   | 948 |   |   |   | - |   |   |   | 28,085 |   |
|    Finished goods                             |   |   | - |   |   |   | - |   |   |   | 40,133 |   |   |   | 2,134 |   |   |   | - |   |   |   | 42,267 |   |
|    Total inventory                            |   |   | - |   |   |   | - |   |   |   | 116,718 |   |   |   | 6,694 |   |   |   | - |   |   |   | 123,412 |   |
| Prepaid expenses and other                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    current assets                             |   |   | - |   |   |   | 3,956 |   |   |   | 15,559 |   |   |   | 470 |   |   |   | - |   |   |   | 19,985 |   |
| Deferred income taxes                                        |   |   | - |   |   |   | - |   |   |   | 13,924 |   |   |   | 2,943 |   |   |   | - |   |   |   | 16,867 |   |
|      Total current assets           |   |   | - |   |   |   | 50,137 |   |   |   | 234,228 |   |   |   | 24,715 |   |   |   | - |   |   |   | 309,080 |   |
| Investments in subsidiaries                                  |   |   | (242,628 | ) |   |   | (289,731 | ) |   |   | - |   |   |   | - |   |   |   | 532,359 |   |   |   | - |   |
| Property and Equipment, at cost:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Land                                                         |   |   | - |   |   |   | - |   |   |   | 3,565 |   |   |   | 144 |   |   |   | - |   |   |   | 3,709 |   |
| Buildings and improvements                                   |   |   | - |   |   |   | - |   |   |   | 34,378 |   |   |   | 828 |   |   |   | - |   |   |   | 35,206 |   |
| Machinery and equipment                                      |   |   | - |   |   |   | 1,246 |   |   |   | 246,211 |   |   |   | 5,833 |   |   |   | - |   |   |   | 253,290 |   |
|                                                         |   |   | - |   |   |   | 1,246 |   |   |   | 284,154 |   |   |   | 6,805 |   |   |   | - |   |   |   | 292,205 |   |
| Less accumulated depreciation                                |   |   | - |   |   |   | (257 | ) |   |   | (119,426 | ) |   |   | (2,511 | ) |   |   | - |   |   |   | (122,194 | ) |
| Total property and equipment, net                            |   |   | - |   |   |   | 989 |   |   |   | 164,728 |   |   |   | 4,294 |   |   |   | - |   |   |   | 170,011 |   |
| Other Assets:                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible assets, net                                       |   |   | - |   |   |   | - |   |   |   | 193,604 |   |   |   | - |   |   |   | - |   |   |   | 193,604 |   |
| Goodwill                                                     |   |   | - |   |   |   | - |   |   |   | 381,854 |   |   |   | 8,925 |   |   |   | - |   |   |   | 390,779 |   |
| Intercompany note receivable                                 |   |   | - |   |   |   | 1,107,260 |   |   |   | - |   |   |   | - |   |   |   | (1,107,260 | ) |   |   | - |   |
| Other                                                        |   |   | - |   |   |   | 40,273 |   |   |   | 306 |   |   |   | - |   |   |   | - |   |   |   | 40,579 |   |
|     Total other assets                   |   |   | - |   |   |   | 1,147,533 |   |   |   | 575,764 |   |   |   | 8,925 |   |   |   | (1,107,260 | ) |   |   | 624,962 |   |
|                                                         |   | $ | (242,628 | ) |   | $ | 908,928 |   |   | $ | 974,720 |   |   | $ | 37,934 |   |   | $ | (574,901 | ) |   | $ | 1,104,053 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current Liabilities:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                             |   | $ | - |   |   | $ | 1,070 |   |   | $ | 55,304 |   |   | $ | 3,229 |   |   | $ | - |   |   | $ | 59,603 |   |
| Accrued expenses and taxes                                   |   |   | - |   |   |   | 24,600 |   |   |   | 49,795 |   |   |   | 1,909 |   |   |   | - |   |   |   | 76,304 |   |
|      Total current liabilities      |   |   | - |   |   |   | 25,670 |   |   |   | 105,099 |   |   |   | 5,138 |   |   |   | - |   |   |   | 135,907 |   |
| Deferred income taxes                                        |   |   | - |   |   |   | - |   |   |   | 28,355 |   |   |   | - |   |   |   | - |   |   |   | 28,355 |   |
| Intercompany note payable                                    |   |   | - |   |   |   | - |   |   |   | 1,088,999 |   |   |   | 18,261 |   |   |   | (1,107,260 | ) |   |   | - |   |
| Other long term liabilities                                  |   |   | - |   |   |   | 11,700 |   |   |   | 55,623 |   |   |   | 910 |   |   |   | - |   |   |   | 68,233 |   |
| Long-term debt                                               |   |   | - |   |   |   | 1,114,186 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,114,186 |   |
| Commitments and contingencies                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholder's Equity (Deficit):                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Common stock                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Additional paid-in-capital                                   |   |   | 209,908 |   |   |   | 209,908 |   |   |   | 126,198 |   |   |   | 5,389 |   |   |   | (341,495 | ) |   |   | 209,908 |   |
| Retained earnings (accumulated deficit)                      |   |   | (446,993 | ) |   |   | (446,993 | ) |   |   | (429,554 | ) |   |   | 8,838 |   |   |   | 867,709 |   |   |   | (446,993 | ) |
| Accumulated other                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    comprehensive income (loss)                |   |   | (5,543 | ) |   |   | (5,543 | ) |   |   | - |   |   |   | (602 | ) |   |   | 6,145 |   |   |   | (5,543 | ) |
|    Total stockholder’s equity (deficit) |   |   | (242,628 | ) |   |   | (242,628 | ) |   |   | (303,356 | ) |   |   | 13,625 |   |   |   | 532,359 |   |   |   | (242,628 | ) |
|                                                         |   | $ | (242,628 | ) |   | $ | 908,928 |   |   | $ | 974,720 |   |   | $ | 37,934 |   |   | $ | (574,901 | ) |   | $ | 1,104,053 |   |

----

| PLY GEM HOLDINGS, INC. AND SUBSIDIARIES                |   |
|--------------------------------------------------------|--------|
| CONSOLIDATING STATEMENT OF CASH FLOWS                  |   |
| For the six months ended July 4, 2009                  |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | Guarantor |   |   | Issuer |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                   |   | Ply Gem |   |   | Ply Gem |   |   | Guarantor |   |   | Guarantor |   |   | Consolidating |   |   |   |   |
|                                                   |   | Holdings, Inc. |   |   | Industries, Inc. |   |   | Subsidiaries |   |   | Subsidiary |   |   | Adjustments |   |   | Consolidated |   |
|                                                   |   | (Amounts in thousands) |   |
| Cash flows from operating                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| activities:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                      |   | $ | (63,517 | ) |   | $ | (63,517 | ) |   | $ | (56,589 | ) |   | $ | 12 |   |   | $ | 120,094 |   |   | $ | (63,517 | ) |
| Adjustments to reconcile net                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (loss) to cash provided by                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (used in) operating activities:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    expense                              |   |   | - |   |   |   | 85 |   |   |   | 27,657 |   |   |   | 342 |   |   |   | - |   |   |   | 28,084 |   |
| Non-cash interest expense, net                         |   |   | - |   |   |   | 4,115 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,115 |   |
| Loss on foreign currency transactions                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 158 |   |   |   | - |   |   |   | 158 |   |
| Gain on sale of assets                                 |   |   | - |   |   |   | - |   |   |   | (4 | ) |   |   | - |   |   |   | - |   |   |   | (4 | ) |
| Deferred income taxes                                  |   |   | - |   |   |   | - |   |   |   | (12,499 | )  |   |   | 202 |   |   |   | - |   |   |   | (12,297 | ) |
| Equity in subsidiaries' net income (loss)              |   |   | 63,517 |   |   |   | 56,577 |   |   |   | - |   |   |   | - |   |   |   | (120,094 | ) |   |   | - |   |
| Changes in operating assets and                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    liabilities:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable, net                               |   |   | - |   |   |   | - |   |   |   | (45,215 | ) |   |   | (235 | ) |   |   | - |   |   |   | (45,450 | ) |
| Inventories                                            |   |   | - |   |   |   | - |   |   |   | 30,090 |   |   |   | (96 | ) |   |   | - |   |   |   | 29,994 |   |
| Prepaid expenses and other                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    current assets                       |   |   | - |   |   |   | 1,164 |   |   |   | (4,687 | ) |   |   | (115 | ) |   |   | - |   |   |   | (3,638 | ) |
| Accounts payable                                       |   |   | - |   |   |   | 1,398 |   |   |   | (608 | ) |   |   | 436 |   |   |   | - |   |   |   | 1,226 |   |
| Accrued expenses and taxes                             |   |   | - |   |   |   | 1,595 |   |   |   | (3,029 | ) |   |   | 11,956 |   |   |   | - |   |   |   | 10,522 |   |
| Cash payments on restructuring liabilities             |   |   | - |   |   |   | - |   |   |   | (3,913 | ) |   |   | - |   |   |   | - |   |   |   | (3,913 | ) |
| Other                                                  |   |   | - |   |   |   | 18 |   |   |   | (163 | ) |   |   | (89 | ) |   |   | - |   |   |   | (234 | ) |
|     Net cash provided by (used in) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     operating activities           |   |   | - |   |   |   | 1,435 |   |   |   | (68,960 | ) |   |   | 12,571 |   |   |   | - |   |   |   | (54,954 | ) |
| Cash flows from investing                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| activities:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                   |   |   | - |   |   |   | - |   |   |   | (3,869 | ) |   |   | (61 | ) |   |   | - |   |   |   | (3,930 | ) |
| Proceeds from sale of assets                           |   |   | - |   |   |   | - |   |   |   | 70 |   |   |   | - |   |   |   | - |   |   |   | 70 |   |
| Other                                                  |   |   | - |   |   |   | - |   |   |   | (109 | ) |   |   | - |   |   |   | - |   |   |   | (109 | ) |
|     Net cash used in               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     investing activities           |   |   | - |   |   |   | - |   |   |   | (3,908 | ) |   |   | (61 | ) |   |   | - |   |   |   | (3,969 | ) |
| Cash flows from financing                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| activities:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net revolver borrowings                                |   |   | - |   |   |   | 20,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Proceeds from intercompany                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
|    investment                           |   |   | - |   |   |   | (53,323 | ) |   |   | 72,288 |   |   |   | (18,965 | ) |   |   | - |   |   |   | - |   |
| Debt issuance costs paid                               |   |   | - |   |   |   | (25 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (25 | ) |
|     Net cash provided by (used in) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     financing activities           |   |   | - |   |   |   | (33,348 | ) |   |   | 72,288 |   |   |   | (18,965 | ) |   |   | - |   |   |   | 19,975 |   |
| Impact of exchange rate movement                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     on cash                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 141 |   |   |   | - |   |   |   | 141 |   |
| Net decrease in cash                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     and cash equivalents           |   |   | - |   |   |   | (31,913 | ) |   |   | (580 | ) |   |   | (6,314 | ) |   |   | - |   |   |   | (38,807 | ) |
| Cash and cash equivalents at the                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     beginning of the period        |   |   | - |   |   |   | 46,181 |   |   |   | 4,490 |   |   |   | 7,618 |   |   |   | - |   |   |   | 58,289 |   |
| Cash and cash equivalents at the end                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     of the period                  |   | $ | - |   |   | $ | 14,268 |   |   | $ | 3,910 |   |   | $ | 1,304 |   |   | $ | - |   |   | $ | 19,482 |   |

----

| PLY GEM HOLDINGS, INC. AND SUBSIDIARIES                |   |
|--------------------------------------------------------|--------|
| CONSOLIDATING STATEMENT OF CASH FLOWS                  |   |
| For the six months ended June 28, 2008                 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   | Guarantor |   |   | Issuer |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                   |   | Ply Gem |   |   | Ply Gem |   |   | Guarantor |   |   | Guarantor |   |   | Consolidating |   |   |   |   |
|                                                   |   | Holdings, Inc. |   |   | Industries, Inc. |   |   | Subsidiaries |   |   | Subsidiary |   |   | Adjustments |   |   | Consolidated |   |
|                                                   |   | (Amounts in thousands) |   |
| Cash flows from operating                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| activities:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                      |   | $ | (41,335 | ) |   | $ | (41,335 | ) |   | $ | (24,673 | ) |   | $ | 2,898 |   |   | $ | 63,110 |   |   | $ | (41,335 | ) |
| Adjustments to reconcile net                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income (loss) to cash provided by                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (used in) operating activities:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    expense                              |   |   | - |   |   |   | 67 |   |   |   | 30,211 |   |   |   | 402 |   |   |   | - |   |   |   | 30,680 |   |
| Non-cash interest expense, net                         |   |   | - |   |   |   | 3,580 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,580 |   |
| Loss on foreign currency transactions                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 495 |   |   |   | - |   |   |   | 495 |   |
| Loss on sale of assets                                 |   |   | - |   |   |   | - |   |   |   | 837 |   |   |   | - |   |   |   | - |   |   |   | 837 |   |
| Write-off debt financing costs                         |   |   | - |   |   |   | 14,047 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,047 |   |
| Deferred income taxes                                  |   |   | - |   |   |   | - |   |   |   | (27,429 | ) |   |   | 212 |   |   |   | - |   |   |   | (27,217 | ) |
| Equity in subsidiaries' net income                     |   |   | 41,335 |   |   |   | 21,775 |   |   |   | - |   |   |   | - |   |   |   | (63,110 | ) |   |   | - |   |
| Changes in operating assets and                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    liabilities:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable, net                               |   |   | - |   |   |   | - |   |   |   | (65,940 | ) |   |   | (732 | ) |   |   | - |   |   |   | (66,672 | ) |
| Inventories                                            |   |   | - |   |   |   | - |   |   |   | 2,453 |   |   |   | (1,304 | ) |   |   | - |   |   |   | 1,149 |   |
| Prepaid expenses and other                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    current assets                       |   |   | - |   |   |   | 1,031 |   |   |   | (6,007 | ) |   |   | (195 | ) |   |   | - |   |   |   | (5,171 | ) |
| Accounts payable                                       |   |   | - |   |   |   | 1,003 |   |   |   | 33,987 |   |   |   | 735 |   |   |   | - |   |   |   | 35,725 |   |
| Accrued expenses and taxes                             |   |   | - |   |   |   | 2,469 |   |   |   | (1,928 | ) |   |   | (2,522 | ) |   |   | - |   |   |   | (1,981 | ) |
| Cash payments on restructuring liabilities             |   |   | - |   |   |   | - |   |   |   | (6,245 | ) |   |   | - |   |   |   | - |   |   |   | (6,245 | ) |
| Other                                                  |   |   | - |   |   |   | - |   |   |   | 17 |   |   |   | 137 |   |   |   | - |   |   |   | 154 |   |
|     Net cash provided by (used in) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     operating activities           |   |   | - |   |   |   | 2,637 |   |   |   | (64,717 | ) |   |   | 126 |   |   |   | - |   |   |   | (61,954 | ) |
| Cash flows from investing                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| activities:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                   |   |   | - |   |   |   | (556 | ) |   |   | (6,087 | ) |   |   | (396 | ) |   |   | - |   |   |   | (7,039 | ) |
| Proceeds from sale of assets                           |   |   | - |   |   |   | 5,810 |   |   |   | 2,993 |   |   |   | - |   |   |   | - |   |   |   | 8,803 |   |
| Other                                                  |   |   | - |   |   |   | (127 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (127 | ) |
|     Net cash provided by (used in) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     investing activities           |   |   | - |   |   |   | 5,127 |   |   |   | (3,094 | ) |   |   | (396 | ) |   |   | - |   |   |   | 1,637 |   |
| Cash flows from financing                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| activities:                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from long-term debt                           |   |   | - |   |   |   | 693,504 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 693,504 |   |
| Net revolver borrowings                                |   |   | - |   |   |   | 40,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 40,000 |   |
| Proceeds from intercompany                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
|    investment                           |   |   | - |   |   |   | (82,257 | ) |   |   | 63,996 |   |   |   | 18,261 |   |   |   | - |   |   |   | - |   |
| Payments on long-term debt                             |   |   | - |   |   |   | (657,347 | ) |   |   | - |   |   |   | (20,563 | ) |   |   | - |   |   |   | (677,910 | ) |
| Debt issuance costs paid                               |   |   | - |   |   |   | (24,843 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (24,843 | ) |
| Equity contributions                                   |   |   | - |   |   |   | 30,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 30,000 |   |
| Equity repurchases                                     |   |   | - |   |   |   | (793 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (793 | ) |
|     Net cash provided by (used in) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     financing activities           |   |   | - |   |   |   | (1,736 | ) |   |   | 63,996 |   |   |   | (2,302 | ) |   |   | - |   |   |   | 59,958 |   |
| Impact of exchange rate movement                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     on cash                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (214 | ) |   |   | - |   |   |   | (214 | ) |
| Net increase (decrease) in cash                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     and cash equivalents           |   |   | - |   |   |   | 6,028 |   |   |   | (3,815 | ) |   |   | (2,786 | ) |   |   | - |   |   |   | (573 | ) |
| Cash and cash equivalents at the                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     beginning of the period        |   |   | - |   |   |   | 40,446 |   |   |   | 5,423 |   |   |   | 6,184 |   |   |   | - |   |   |   | 52,053 |   |
| Cash and cash equivalents at the end                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     of the period                  |   | $ | - |   |   | $ | 46,474 |   |   | $ | 1,608 |   |   | $ | 3,398 |   |   | $ | - |   |   | $ | 51,480 |   |

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Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 

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|                                         |   | Three months ended |    |   | Six months ended |   |
|----------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                         |   | July 4, 2009       |    |   | June 28, 2008    |   |   | July 4, 2009 |   |   | June 28, 2008 |   |
|                                         |   | (unaudited)        |    |   | (unaudited)      |   |   | (unaudited) |   |   | (unaudited) |   |
| Net Sales                                    |   |               |    |   |             |   |   |   |   |   |   |   |
|    Siding, Fencing, and Stone |   | $                  | 165,613 |   |             | $      | 209,250 |   |   | $ | 274,073 |   |   | $ | 356,310 |   |
|    Windows and Doors          |   |               | 94,963  |   |             |   | 132,030 |   |   |   | 169,254 |   |   |   | 241,343 |   |
| Operating earnings (loss)                    |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    Siding, Fencing, and Stone |   |               | 27,758  |   |             |   | 21,971 |   |   |   | 20,236 |   |   |   | 17,770 |   |
|    Windows and Doors          |   |               | (3,005  | )      |             |   | 1,235 |   |   |   | (24,682 | ) |   |   | (6,321 | ) |
|    Unallocated                |   |               | (2,928  | )      |             |   | (2,333 | ) |   |   | (6,537 | ) |   |   | (4,860 | ) |
| Foreign currency gain (loss)                 |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    Windows and Doors          |   |               | (70     | )      |             |   | 56 |   |   |   | (158 | ) |   |   | (495 | ) |
| Interest expense, net                        |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    Siding, Fencing, and Stone |   |               | 73      |   |             |   | 13 |   |   |   | 128 |   |   |   | 29 |   |
|    Windows and Doors          |   |               | (69     | )      |             |   | (234 | ) |   |   | (68 | ) |   |   | (593 | ) |
|    Unallocated                |   |               | (33,045 | )      |             |   | (50,737 | ) |   |   | (66,792 | ) |   |   | (73,265 | ) |
| Income tax benefit                           |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    Unallocated                |   |               | 3,307   |   |             |   | 10,536 |   |   |   | 14,356 |   |   |   | 26,400 |   |
|                                         |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                     |   | $                  | (7,979  | )      |             | $      | (19,493 | ) |   | $ | (63,517 | ) |   | $ | (41,335 | ) |

----

|                              |   | For the three months ended |    |
|-----------------------------------|--------|----------------------------|---------|
| (Dollars in thousands)            |   | July 4, 2009               |    |   | June 28, 2008 |   |
|                              |   | (unaudited)                |    |   | (unaudited) |   |
| Statement of operations data:     |   |                       |    |   |   |   |   |   |   |   |   |   |
| Net sales                         |   | $                          | 165,613 |   |   |   | 100 | % |   | $ | 209,250 |   |   |   | 100 | % |
| Cost of products sold             |   |                       | 118,808 |   |   |   | 71.7 | % |   |   | 164,272 |   |   |   | 78.5 | % |
| Gross profit                      |   |                       | 46,805  |   |   |   | 28.3 | % |   |   | 44,978 |   |   |   | 21.5 | % |
| SG&A expense                  |   |                       | 16,913  |   |   |   | 10.2 | % |   |   | 20,870 |   |   |   | 10.0 | % |
| Amortization of intangible assets |   |                       | 2,134   |   |   |   | 1.3 | % |   |   | 2,137 |   |   |   | 1.0 | % |
| Operating earnings                |   | $                          | 27,758  |   |   |   | 16.8 | % |   | $ | 21,971 |   |   |   | 10.5 | % |

----

|                              |   | For the six months ended |    |
|-----------------------------------|--------|--------------------------|---------|
| (Dollars in thousands)            |   | July 4, 2009             |    |   | June 28, 2008 |   |
|                              |   | (unaudited)              |    |   | (unaudited) |   |
| Statement of operations data:     |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net sales                         |   | $                        | 274,073 |   |   |   | 100 | % |   | $ | 356,310 |   |   |   | 100 | % |
| Cost of products sold             |   |                     | 214,283 |   |   |   | 78.2 | % |   |   | 294,810 |   |   |   | 82.7 | % |
| Gross profit                      |   |                     | 59,790  |   |   |   | 21.8 | % |   |   | 61,500 |   |   |   | 17.3 | % |
| SG&A expense                  |   |                     | 35,290  |   |   |   | 12.9 | % |   |   | 39,456 |   |   |   | 11.1 | % |
| Amortization of intangible assets |   |                     | 4,264   |   |   |   | 1.6 | % |   |   | 4,274 |   |   |   | 1.2 | % |
| Operating earnings                |   | $                        | 20,236  |   |   |   | 7.4 | % |   | $ | 17,770 |   |   |   | 5.0 | % |

----

|                              |   | For the three months ended |   |
|-----------------------------------|--------|----------------------------|--------|
| (Dollars in thousands)            |   | July 4, 2009               |   |   | June 28, 2008 |   |
|                              |   | (unaudited)                |   |   | (unaudited) |   |
| Statement of operations data:     |   |                       |   |   |   |   |   |   |   |   |   |   |
| Net sales                         |   | $                          | 94,963 |   |   |   | 100 | % |   | $ | 132,030 |   |   |   | 100 | % |
| Cost of products sold             |   |                       | 79,023 |   |   |   | 83.2 | % |   |   | 108,654 |   |   |   | 82.3 | % |
| Gross profit                      |   |                       | 15,940 |   |   |   | 16.8 | % |   |   | 23,376 |   |   |   | 17.7 | % |
| SG&A expense                  |   |                       | 16,170 |   |   |   | 17.0 | % |   |   | 19,366 |   |   |   | 14.7 | % |
| Amortization of intangible assets |   |                       | 2,775  |   |   |   | 2.9 | % |   |   | 2,775 |   |   |   | 2.1 | % |
| Operating earnings (loss)         |   | $                          | (3,005 | ) |   |   | -3.2 | % |   | $ | 1,235 |   |   |   | 0.9 | % |
| Currency transaction gain (loss)  |   | $                          | (70    | ) |   |   | -0.1 | % |   | $ | 56 |   |   |   | 0.0 | % |

----

|                              |   | For the six months ended |    |
|-----------------------------------|--------|--------------------------|---------|
| (Dollars in thousands)            |   | July 4, 2009             |    |   | June 28, 2008 |   |
|                              |   | (unaudited)              |    |   | (unaudited) |   |
| Statement of operations data:     |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net sales                         |   | $                        | 169,254 |   |   |   | 100 | % |   | $ | 241,343 |   |   |   | 100 | % |
| Cost of products sold             |   |                     | 153,239 |   |   |   | 90.5 | % |   |   | 203,997 |   |   |   | 84.5 | % |
| Gross profit                      |   |                     | 16,015  |   |   |   | 9.5 | % |   |   | 37,346 |   |   |   | 15.5 | % |
| SG&A expense                  |   |                     | 35,146  |   |   |   | 20.8 | % |   |   | 38,115 |   |   |   | 15.8 | % |
| Amortization of intangible assets |   |                     | 5,551   |   |   |   | 3.3 | % |   |   | 5,552 |   |   |   | 2.3 | % |
| Operating loss                    |   | $                        | (24,682 | ) |   |   | -14.6 | % |   | $ | (6,321 | ) |   |   | -2.6 | % |
| Currency transaction loss         |   | $                        | (158    | ) |   |   | -0.1 | % |   | $ | (495 | ) |   |   | -0.2 | % |

----

|                          |   | For the three months ended |
|-------------------------------|--------|----------------------------|
| (Amounts in thousands)        |   | July 4, 2009               |   | June 28, 2008 |
|                          |   | (unaudited)                |   | (unaudited) |
| Statement of operations data: |   |                       |   |   |   |   |
| Operating loss                |   | $                          | (2,928 | ) |   | $ | (2,333 | ) |
| Interest expense              |   |                       | (33,054 | ) |   |   | (50,823 | ) |
| Interest income               |   |                       | 9 |   |   |   | 86 |   |
| Benefit for income taxes      |   | $                          | 3,307 |   |   | $ | 10,536 |   |

----

|                          |   | For the six months ended |
|-------------------------------|--------|--------------------------|
| (Amounts in thousands)        |   | July 4, 2009             |   | June 28, 2008 |
|                          |   | (unaudited)              |   | (unaudited) |
| Statement of operations data: |   |                     |   |   |   |   |
| Operating loss                |   | $                        | (6,537 | ) |   | $ | (4,860 | ) |
| Interest expense              |   |                     | (66,810 | ) |   |   | (73,512 | ) |
| Interest income               |   |                     | 18 |   |   |   | 247 |   |
| Benefit for income taxes      |   | $                        | 14,356 |   |   | $ | 26,400 |   |

----

----

11.75% Senior Secured Notes due 2013

----

----

----

| ·   | our high degree of leverage and significant debt service obligations; |
|--------------------|-----------------------------------------------------------------------|

| ·   | restrictions under the indentures governing the Senior Secured Notes and our Senior Subordinated Notes and restrictions under our ABL Facility; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the competitive nature of our industry; |
|--------------------|-----------------------------------------|

----

| ·   | changes in interest rates, and general economic, home repair and remodeling and new home construction market conditions; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in the price and availability of raw materials; and |
|--------------------|-------------------------------------------------------------|

| ·   | changes in our relationships with our significant customers. |
|--------------------|--------------------------------------------------------------|

| Inflation |
|-----------|

----

----

| *  4.1  | Amendment and Restatement Agreement, dated as of July 16, 2009, to the Credit Agreement dated as of June 9, 2008, among Ply Gem Holdings, Inc., Ply Gem Industries, Inc., CWD Windows and Doors, Inc., the other borrowers named therein, each lender from time to time party thereto, Credit Suisse, Cayman Islands Branch, as Administrative Agent,U.S. Swing Line Lender and U.S. L/C Issuer, General Electric Capital Corporation, as Collateral Agent, Credit Suisse, Toronto Branch, as Canadian Swing Line Lender and Canadian L/C Issuer, and the other agents party thereto.                                                                                                     |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *  4.2  | Credit Agreement, dated June 9, 2008, as amended and restated as of July 16, 2009, among Ply Gem Holdings, Inc., Ply Gem Industries, Inc., CWD Windows and Doors, Inc., the other borrowers named therein, each lender from time to time party thereto, Credit Suisse, as Administrative Agent, U.S. Swing Line Lender and U.S. L/C Issuer, GeneralElectric Capital Corporation, as Collateral Agent, Credit Suisse, Toronto Branch, as Canadian Swing Line Lender and Canadian L/C Issuer, Credit Suisse Securities (USA) LLC, as Sole Lead Arranger and Sole Bookrunner, General Electric Capital Corporation, as Syndication Agent, and UBS Loan Finance LLC, as Documentation Agent.  |
| *  31.1 | Certification by President and Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| *  31.2 | Certification by Vice President and Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| By     |   | /s/ Gary E. Robinette                                  |
|--------|--------|-------------------------------------------------------------|
| Name:  |   | Gary E. Robinette        |
| Title: |   | President and Chief Executive Officer                       |

| By     |   | /s/ Shawn K. Poe                                       |
|--------|--------|------------------------------------------------------------------|
| Name:  |   | Shawn K. Poe                                                     |
| Title: |   | Vice President, Chief Financial Officer, Treasurer and Secretary |

----