|    |   |                                                                                                                                                      |
|--------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| þ       |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                 |
|         |   | For the fiscal year ended January 1, 2011                                                                                                                 |
| 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                                                                                             |   | 20-0634715                          |
| (State or other jurisdiction ofincorporation or organization)                                        |   | (I.R.S. EmployerIdentification No.) |
|  1070 Technology Drive North Venice, Florida (Address of principal executive offices) |   |  34275 (Zip Code)         |

|                                    |                                 |                 |
|----------------------------------------------|--------------------------------------|----------------------|
| Title of Each Class                          | Name of Exchange on Which Registered |
| Common stock, par value $0.01 per share |                                 | NASDAQ Global Market |

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PGT, INC.

|                                      |                                                                                                               |   |   |   |   |
|-------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                      |                                                                                                               |   | Page   |
|                                      |                                                                                                               |
| PART I                               |
| Item 1.                              | Business                                                                                                           |   |   | 2      |   |
| Item 1A.                             | Risk Factors                                                                                                       |   |   | 6      |   |
| Item 1B.                             | Unresolved Staff Comments                                                                                          |   |   | 10     |   |
| Item 2.                              | Properties                                                                                                         |   |   | 10     |   |
| Item 3.                              | Legal Proceedings                                                                                                  |   |   | 11     |   |
| Item 4.                              | Reserved                                                                                                           |   |   | 11     |   |
|                                      |                                                                                                               |   |   |   |   |
|                                      |                                                                                                               |   |   |   |   |
|                                      |
| PART II                              |
| Item 5.                              | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   |   | 11     |   |
| Item 6.                              | Selected Financial Data                                                                                            |   |   | 13     |   |
| Item 7.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operation                         |   |   | 14     |   |
| Item 7A.                             | Quantitative and Qualitative Disclosures About Market Risk                                                         |   |   | 30     |   |
| Item 8.                              | Financial Statements and Supplementary Data                                                                        |   |   | 31     |   |
| Item 9.                              | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               |   |   | 67     |   |
| Item 9A.                             | Controls and Procedures                                                                                            |   |   | 67     |   |
| Item 9B.                             | Other Information                                                                                                  |   |   | 69     |   |
|                                      |
| PART III                             |
| Item 10.                             | Directors, Executive Officers and Corporate Goverance                                                              |   |   | 69     |   |
| Item 11.                             | Executive Compensation                                                                                             |   |   | 71     |   |
| Item 12.                             | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     |   |   | 71     |   |
| Item 13.                             | Certain Relationships and Related Transactions, and Directors Independence                                         |   |   | 71     |   |
| Item 14.                             | Principal Accounting Fees and Services                                                                             |   |   | 71     |   |
|                                      |
| PART IV                              |
| Item 15.                             | Exhibits, Financial Statement Schedules                                                                            |   |   | 71     |   |
| Subsidiaries                              |
| Consent of Ernst & Young LLP          |
| Written Statement Pursuant to Section 302 |
| Written Statement Pursuant to Section 302 |
| Written Statement Pursuant to Section 906 |

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|                      |     |
|---------------------------|----------|
| Item 1.    | BUSINESS |

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|          |   |       |   |   |       |   |   |       |   |
|---------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|          |   | Year Ended |   |
|          |   | January 1, |   |   | January 2, |   |   | January 3, |   |
|          |   | 2011       |   |   | 2010       |   |   | 2009       |   |
|          |   |       |   |   |       |   |   |       |   |
| Domestic      |   | $          | 167.8  |   |       | $      | 156.5  |       |   | $ | 205.9 |   |
| International |   |       | 7.9    |   |       |   | 9.5    |       |   |   | 12.7 |   |
|          |   | $          | 175.7  |   |       | $      | 166.0  |       |   | $ | 218.6 |   |

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Item 1A.

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|   |   |                                                                                                                                                                                                                                                                                            |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | · increasing our vulnerability to general economic and industry conditions;                                                                                                                                                                                                           |
|   |   |
|   |   | · requiring a substantial portion of our cash flow from operations to be dedicated to the payment of principal and interest on our indebtedness, therefore reducing our ability to use our cash flow to fund our operations, capital expenditures, and future business opportunities; |
|   |   |
|   |   | · exposing us to the risk of increased interest rates because certain of our borrowings, including borrowings under our credit facilities, will be at variable rates of interest;                                                                                                     |
|   |   |
|   |   | · limiting our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions, and general corporate or other purposes; and                                                                                           |
|   |   |
|   |   | · limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who have less debt.                                                                                                                 |

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Item 1B

|                      |       |
|---------------------------|------------|
| Item 2.    | PROPERTIES |

|                                                           |   | Manufacturing    |    |   | Support |   |   | Storage |   |
|----------------------------------------------------------------|--------|------------------|---------|--------|---------|--------|--------|---------|--------|
|                                                           |   | (in square feet) |    |
| Owned:                                                         |   |             |    |   |    |   |   |    |   |
|   Main Plant and Corporate Office, North Venice, FL  |   |             | 348,000 |   |    |   | 15,000 |    |   |   | - |   |
|   Glass termpering and laminating, North Venice, FL  |   |             | 80,000  |   |    |   | -      |    |   |   | - |   |
|   Insulated Glass, North Venice, FL                  |   |             | 42,000  |   |    |   | -      |    |   |   | - |   |
|   PGT Wellness Center, North Venice, FL              |   |             | -       |   |    |   | 3,600  |    |   |   | - |   |
|   Manufacturing Facility Salisbury, NC               |   |             | 379,000 |   |    |   | 14,000 |    |   |   | - |   |
|                                                           |   |             |    |   |    |   |   |    |   |   |   |   |
| Leased:                                                        |   |             |    |   |    |   |   |    |   |   |   |   |
|    James Street Storage, Venice, FL             |   |             | -       |   |    |   | -      |    |   |   | 15,000 |   |
|    Endeavor Court, Nokomis, FL                  |   |             | -       |   |    |   | 2,300  |    |   |   | - |   |
|    Endeavor Court, Nokomis, FL                  |   |             | -       |   |    |   | 6,100  |    |   |   | - |   |
|    Fleet Maintenance Building, North Venice, FL |   |             | -       |   |    |   | 16,000 |    |   |   | - |   |
|                                                           |   |             | 849,000 |   |    |   | 57,000 |    |   |   | 15,000 |   |

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|   |   |
|--------|--------|

| Item 3.    | LEGAL PROCEEDINGS  |
|---------------------------|-------------------------|

|                      |           |
|---------------------------|----------------|
| Item 4.    | RESERVED  |

PART II

|                      |                                                                                                               |
|---------------------------|--------------------------------------------------------------------------------------------------------------------|
| Item 5.    | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |

|                                          |   | High   |   | Low    |
|-----------------------------------------------|--------|--------|--------|--------|
| 2010     1st Quarter |   | $      | 2.39   |   |   | $ | 1.50 |   |
|      2nd Quarter     |   | $      | 3.70   |   |   | $ | 1.87 |   |
|      3rd Quarter     |   | $      | 2.76   |   |   | $ | 1.90 |   |
|      4th Quarter     |   | $      | 2.70   |   |   | $ | 2.02 |   |
|                                          |   |   |   |   |   |   |   |   |
| 2009     1st Quarter |   | $      | 1.50   |   |   | $ | 0.80 |   |
|      2nd Quarter     |   | $      | 2.88   |   |   | $ | 1.20 |   |
|      3rd Quarter     |   | $      | 3.19   |   |   | $ | 1.50 |   |
|      4th Quarter     |   | $      | 2.85   |   |   | $ | 2.00 |   |

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|                      |   | 6/27/2006 |               |   |   | 6/06   |   |   |   | 9/06   |   |   | 12/30/2006 |     |   |   | 3/07   |   |   |   | 6/07   |   |   |   | 9/07   |   |   | 12/29/2007 |     |
|---------------------------|--------|-----------|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|----------|
| PGT, Inc.                 |   |      | 100.00             |   |   |   | 112.86 |   |   |   | 100.43 |   |       |     | 90.36  |   |   |   | 85.71  |   |   |   | 78.07  |   |   |   | 78.07  |       |     |   | 56.64 |   |
| S&P Building Products |   |      | 100.00             |   |   |   | 102.51 |   |   |   | 96.65  |   |       |     | 105.41 |   |   |   | 106.85 |   |   |   | 114.67 |   |   |   | 114.67 |       |     |   | 95.04 |   |
| NASDAQ Composite          |   |      | 100.00             |   |   |   | 103.42 |   |   |   | 107.53 |   |       |     | 115.00 |   |   |   | 115.30 |   |   |   | 123.95 |   |   |   | 123.95 |       |     |   | 128.63 |   |
|                      |   |      |     |   |   |   |   |   |   |   |   |   |       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |       |     |   |   |   |
|                      |   |      | 3/08               |   |   |   | 6/08   |   |   |   | 9/08   |   |       | 1/3/2009 |   |   |   | 4/09   |   |   |   | 6/09   |   |   |   | 9/09   |   |       | 1/2/2010 |   |
| PGT, Inc.                 |   |      | 21.21              |   |   |   | 22.71  |   |   |   | 23.29  |   |       |     | 8.43   |   |   |   | 10.71  |   |   |   | 11.71  |   |   |   | 19.71  |       |     |   | 14.93 |   |
| S&P Building Products |   |      | 98.60              |   |   |   | 83.05  |   |   |   | 94.71  |   |       |     | 58.76  |   |   |   | 40.44  |   |   |   | 46.04  |   |   |   | 63.88  |       |     |   | 72.91 |   |
| NASDAQ Composite          |   |      | 108.52             |   |   |   | 109.18 |   |   |   | 99.60  |   |       |     | 75.09  |   |   |   | 76.61  |   |   |   | 86.83  |   |   |   | 97.17  |       |     |   | 109.17 |   |
|                      |   |      |               |   |   |   |   |   |   |   |   |   |       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |       |     |   |   |   |
|                      |   |      | 4/10               |   |   |   | 7/10   |   |   |   | 9/10   |   |       | 1/1/2011 |   |   |   |   |   |   |   |   |   |   |   |   |   |       |     |   |   |
| PGT, Inc.                 |   |      | 13.50              |   |   |   | 17.64  |   |   |   | 16.43  |   |       |     | 17.50  |   |   |   |   |   |   |   |   |   |   |   |   |       |     |   |   |   |
| S&P Building Products |   |      | 81.94              |   |   |   | 56.80  |   |   |   | 58.13  |   |       |     | 66.84  |   |   |   |   |   |   |   |   |   |   |   |   |       |     |   |   |   |
| NASDAQ Composite          |   |      | 114.39             |   |   |   | 99.60  |   |   |   | 112.88 |   |       |     | 126.31 |   |   |   |   |   |   |   |   |   |   |   |   |       |     |   |   |   |

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| Item 6.    | SELECTED FINANCIAL DATA  |
|---------------------------|-------------------------------|

|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |
|---------------------------------------------------------------------|--------|------------|---------|--------|------------|--------|---------|------------|--------|--------|-------------------|--------|--------|-------------------|---------|
|                                                                |   | Year Ended |    |   | Year Ended |   |    | Year Ended |   |   | Year Ended        |   |   | Year Ended        |    |
| Consolidated Selected Financial Data                                |   | January 1, |    |   | January 2, |   |    | January 3, |   |   | December 29, |   |   | December 30, |    |
| (in thousands except per share data)                                |   | 2011       |    |   | 2010       |   |    | 2009       |   |   | 2007              |   |   | 2006              |    |
|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |
|  Net sales                                                     |   | $          | 175,741 |   |       | $      | 166,000 |       |   | $      | 218,556           |   |   | $                 | 278,394 |   |   | $ | 371,598 |   |
|  Cost of sales                                                 |   |       | 125,403 |   |       |   | 121,622 |       |   |   | 150,277           |   |   |              | 187,389 |   |   |   | 229,867 |   |
|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|  Gross margin                                                  |   |       | 50,338  |   |       |   | 44,378  |       |   |   | 68,279            |   |   |              | 91,005  |   |   |   | 141,731 |   |
|      Impairment charges(1)                 |   |       | 5,561   |   |       |   | 742     |       |   |   | 187,748           |   |   |              | 826     |   |   |   | 1,151 |   |
|      Stock compensation expense(2)         |   |       | -       |   |       |   | -       |       |   |   | -                 |   |   |              | -       |   |   |   | 26,898 |   |
|      Selling, general and administrative   |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|        expenses                  |   |       | 54,091  |   |       |   | 51,902  |       |   |   | 63,109            |   |   |              | 77,004  |   |   |   | 86,219 |   |
|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|  (Loss) income from operations                                 |   |       | (9,314  | )      |       |   | (8,266  | )          |   |   | (182,578          | )      |   |              | 13,175  |   |   |   | 27,463 |   |
|  Interest expense                                              |   |       | 5,123   |   |       |   | 6,698   |       |   |   | 9,283             |   |   |              | 11,404  |   |   |   | 28,509 |   |
|  Other (income) expense, net(3)                                |   |       | (19     | )      |       |   | 37      |       |   |   | (40               | )      |   |              | 692     |   |   |   | (178 | ) |
|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|  (Loss) income before income taxes                             |   |       | (14,418 | )      |       |   | (15,001 | )          |   |   | (191,821          | )      |   |              | 1,079   |   |   |   | (868 | ) |
|  Income tax expense (benefit)                                  |   |       | 77      |   |       |   | (5,584  | )          |   |   | (28,789           | )      |   |              | 456     |   |   |   | 101 |   |
|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|  Net (loss) income                                             |   | $          | (14,495 | )      |       | $      | (9,417  | )          |   | $      | (163,032          | )      |   | $                 | 623     |   |   | $ | (969 | ) |
|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|  Net (loss) income per common share:                           |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|      Basic                                 |   | $          | (0.29   | )      |       | $      | (0.26   | )          |   | $      | (5.08             | )      |   | $                 | 0.02    |   |   | $ | (0.04 | ) |
|      Diluted                               |   | $          | (0.29   | )      |       | $      | (0.26   | )          |   | $      | (5.08             | )      |   | $                 | 0.02    |   |   | $ | (0.04 | ) |
|  Weighted average shares outstanding:                          |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|      Basic(4)                              |   |       | 50,174  |   |       |   | 36,241  |       |   |   | 32,104            |   |   |              | 29,163  |   |   |   | 22,656 |   |
|      Diluted(4)                            |   |       | 50,174  |   |       |   | 36,241  |       |   |   | 32,104            |   |   |              | 30,207  |   |   |   | 22,656 |   |
|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|  Other financial data:                                         |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|      Depreciation                          |   | $          | 9,180   |   |       | $      | 10,435  |       |   | $      | 11,518            |   |   | $                 | 10,418  |   |   | $ | 9,871 |   |
|      Amortization                          |   |       | 6,028   |   |       |   | 5,731   |       |   |   | 5,570             |   |   |              | 5,570   |   |   |   | 5,742 |   |
|                                                                |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|                                                                |   | As Of      |    |   | As Of      |   |    | As Of      |   |   | As Of             |   |   | As Of             |    |
|                                                                |   | January 1, |    |   | January 2, |   |    | January 3, |   |   | December 29, |   |   | December 30, |    |
|                                                                |   |       | 2011    |   |       |   | 2010    |       |   |   | 2009              |   |   |              | 2007    |   |   |   | 2006 |   |
|  Balance Sheet data:                                           |   |       |    |   |       |   |    |       |   |   |              |   |   |              |    |   |   |   |   |   |
|      Cash and cash equivalents             |   | $          | 22,012  |   |       | $      | 7,417   |       |   | $      | 19,628            |   |   | $                 | 19,479  |   |   | $ | 36,981 |   |
|      Total assets                          |   |       | 169,119 |   |       |   | 173,630 |       |   |   | 200,617           |   |   |              | 407,865 |   |   |   | 442,794 |   |
|      Total debt, including current portion |   |       | 50,163  |   |       |   | 68,268  |       |   |   | 90,366            |   |   |              | 130,000 |   |   |   | 165,488 |   |
|      Shareholders’ equity            |   |       | 83,042  |   |       |   | 68,209  |       |   |   | 74,185            |   |   |              | 210,472 |   |   |   | 205,206 |   |

| (1)   | In 2010, amounts relates to write-down of the value of our Salisbury North Carolina, Lexington, North Carolina properties and certain other equipment of the Company.  In 2009, 2007 and 2006, amount relates to write-down of the value of our Lexington, North Carolina property. In 2008, amount relates to intangible asset impairment charges. See Notes 2 and 7 in Item 8. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents compensation expense paid to stock option holders (including applicable payroll taxes) in lieu of adjusting exercise prices in connection with the dividends paid to shareholders in February 2006 of $26.9 million, including expenses. This amount includes amounts paid to stock option holders whose other compensation is a component of cost of sales of $5.1 million. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Relates to derivative financial instruments. |
|-----------------|----------------------------------------------|

| (4)   | Weighted average common shares outstanding for all periods have been restated to give effect to the bonus element in the 2010 rights offering. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 7.

| ·   | Executive Overview; |
|--------------------|---------------------|

| ·   | Results of Operations; |
|--------------------|------------------------|

| ·   | Liquidity and Capital Resources; |
|--------------------|----------------------------------|

| ·   | Disclosures of Contractual Obligations and Commercial Commitments; |
|--------------------|--------------------------------------------------------------------|

| ·   | Critical Accounting Estimates; |
|--------------------|--------------------------------|

| ·   | Recently Issued Accounting Standards; and |
|--------------------|-------------------------------------------|

| ·   | Forward Outlook |
|--------------------|-----------------|

| ·   | High unemployment rates; |
|--------------------|--------------------------|

| ·   | Declining prices of homes; |
|--------------------|----------------------------|

| ·   | High inventories of unsold homes including the so-called “shadow market” of unsold homes, and |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | Ongoing issues regarding foreclosures. |
|--------------------|----------------------------------------|

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| (in thousands)                                    |   | Fair Values |   |
|---------------------------------------------------|--------|-------------|--------|
| Inventory                                         |   | $           | 254    |   |
| Property and equipment                            |   |        | 623    |   |
| Identifiable intangibles                          |   |        | 575    |   |
|      Net assets acquired |   |        | 1,452  |   |
| Purchase price                                    |   |        | 1,452  |   |
|      Goodwill            |   | $           | -      |   |

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|                                                             |   | Beginning of Year |   |   | Charged to Expense |   |   | Disbursed in Cash |   |   | End of Year |   |
|------------------------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|--------|-------------------|--------|--------|------------------|--------|
| (in thousands)                                                   |   |              |   |   |               |   |   |              |   |   |             |   |
|      Year ended January 1, 2011:        |   |              |   |   |               |   |   |              |   |   |             |   |
| 2009 Restructuring                                               |   | $                 | 898    |   |               | $      | -      |              |   | $      | (898             | )      |   | $ | - |   |
| 2010 Consolidation                                               |   |              | -      |   |               |   | 2,053  |              |   |   | (241             | )      |   |   | 1,812 |   |
|      For the year ended January 1, 2011 |   | $                 | 898    |   |               | $      | 2,053  |              |   | $      | (1,139           | )      |   | $ | 1,812 |   |
|                                                             |   |              |   |   |               |   |   |              |   |   |             |   |   |   |   |   |
|      Year ended January 2, 2010:        |   |              |   |   |               |   |   |              |   |   |             |   |   |   |   |   |
| 2008 Restructuing                                                |   | $                 | 332    |   |               | $      | -      |              |   | $      | (332             | )      |   | $ | - |   |
| 2009 Restructuring                                               |   |              | -      |   |               |   | 5,395  |              |   |   | (4,497           | )      |   |   | 898 |   |
|      For the year ended January 2, 2010 |   | $                 | 332    |   |               | $      | 5,395  |              |   | $      | (4,829           | )      |   | $ | 898 |   |
|                                                             |   |              |   |   |               |   |   |              |   |   |             |   |   |   |   |   |
|      Year ended January 3, 2009:        |   |              |   |   |               |   |   |              |   |   |             |   |   |   |   |   |
| 2007 Restructuing                                                |   | $                 | 850    |   |               | $      | -      |              |   | $      | (850             | )      |   | $ | - |   |
| 2008 Restructuring                                               |   |              | -      |   |               |   | 2,131  |              |   |   | (1,799           | )      |   |   | 332 |   |
|      For the year ended January 3, 2009 |   | $                 | 850    |   |               | $      | 2,131  |              |   | $      | (2,649           | )      |   | $ | 332 |   |

|                                                                  |   | Year Ended |    |
|-----------------------------------------------------------------------|--------|------------|---------|
|                                                                  |   | January 1, |    |   | January 2, |   |   | January 3, |   |
|                                                                  |   | 2011       |    |   | 2010 |   |   | 2009 |   |
|                                                                  |   |       |    |   |   |   |   |   |   |
| Net loss                                                              |   | $          | (14,495 | ) |   | $ | (9,417 | ) |   | $ | (163,032 | ) |
| Interest expense                                                      |   |       | 5,123   |   |   |   | 6,698 |   |   |   | 9,283 |   |
| Income tax expense (benefit)                                          |   |       | 77      |   |   |   | (5,584 | ) |   |   | (28,789 | ) |
| Depreciation                                                          |   |       | 9,180   |   |   |   | 10,435 |   |   |   | 11,518 |   |
| Amortization                                                          |   |       | 6,028   |   |   |   | 5,731 |   |   |   | 5,570 |   |
|                                                                  |   |       |    |   |   |   |   |   |   |   |   |   |
| EBITDA (1)(2)                                                         |   | $          | 5,913   |   |   | $ | 7,863 |   |   | $ | (165,450 | ) |
|                                                                  |   |       |    |   |   |   |   |   |   |   |   |   |
|                                                                  |   |       |    |   |   |   |   |   |   |   |   |   |
| (1) Includes the impact of the following expenses:                    |   |       |    |   |   |
|      Consolidation/Restructuring charges (a) |   | $          | (2,053  | ) |   | $ | (5,395 | ) |   | $ | (2,131 | ) |
|      Impairment charges (b)                  |   |       | (5,561  | ) |   |   | (742 | ) |   |   | (187,748 | ) |

| (a)   | Represents charges related to consolidation actions taken in 2010 and restructuring actions taken in 2009, and 2008.  These charges relate primarily to employee separation costs. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In 2010, primarily represents the write-down of the value of the Salisbury and Lexington, North Carolina properties, and certain fixed assets related to the consolidation of the Salisbury, North Carolina operations into Venice, Florida. In 2009, represents the write-down of the value of the Lexington, North Carolina property. In 2008, represents goodwill and indefinite lived asset impairment charges. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) EBITDA is defined as net income plus interest expense (net of interest income), income taxes, depreciation, and amortization. EBITDA is a measure commonly used in the window and door industry, and we present EBITDA to enhance your understanding of our operating performance. We use EBITDA as one criterion for evaluating our performance relative to that of our peers. We believe that EBITDA is an operating performance measure that provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles, and ages of related assets among otherwise comparable companies. While we believe EBITDA is a useful measure for investors, it is not a measurement presented in accordance with United States generally accepted accounting principles, or GAAP. You should not consider EBITDA in isolation or as a substitute for net income, cash flows from operations, or any other items calculated in accordance with GAAP. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                     |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |
|----------------------------------------------------------|--------|------------|---------|--------|----------------|--------|---------|------------|--------|--------|----------------------|-----------|--------|--------|--------|
|                                                     |   | Year Ended |    |   | Percent Change |   |
|                                                     |   | January 1, |    |   | January 2,     |   |    | January 3, |   |   | Increase /(Decrease) |      |
|                                                     |   | 2011       |    |   | 2010           |   |    | 2009       |   |   |                 | 2010-2009 |   |   |   | 2009-2008 |   |
|                                                     |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |
| (in thousands, except per share amounts)                 |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |
| Net sales                                                |   | $          | 175,741 |   |           | $      | 166,000 |       |   | $      | 218,556              |      |   |   | 5.9    | % |   |   | (24.0 | %) |
| Cost of sales                                            |   |       | 125,403 |   |           |   | 121,622 |       |   |   | 150,277              |      |   |   | 3.1    | % |   |   | (19.1 | %) |
|                                                     |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |   |   |   |
|      Gross margin               |   |       | 50,338  |   |           |   | 44,378  |       |   |   | 68,279               |      |   |   | 13.4   | % |   |   | (35.0 | %) |
|      As a percentage of sales   |   |       | 28.6    | %      |           |   | 26.7    | %          |   |   | 31.2                 | %         |   |   |   |   |   |   |   |   |
|                                                     |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |   |   |   |
| Impairment charges                                       |   |       | 5,561   |   |           |   | 742     |       |   |   | 187,748              |      |   |   |   |   |   |   |   |   |
| SG&A expenses                                        |   |       | 54,091  |   |           |   | 51,902  |       |   |   | 63,109               |      |   |   | 4.2    | % |   |   | (17.8 | %) |
| SG&A expenses as a percentage of sales               |   |       | 30.8    | %      |           |   | 31.3    | %          |   |   | 28.9                 | %         |   |   |   |   |   |   |   |   |
|                                                     |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |   |   |   |
|      Loss from operations       |   |       | (9,314  | )      |           |   | (8,266  | )          |   |   | (182,578             | )         |   |   |   |   |   |   |   |   |
|                                                     |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |   |   |   |
| Interest expense, net                                    |   |       | 5,123   |   |           |   | 6,698   |       |   |   | 9,283                |      |   |   |   |   |   |   |   |   |
| Other (income) expense, net                              |   |       | (19     | )      |           |   | 37      |       |   |   | (40                  | )         |   |   |   |   |   |   |   |   |
| Income tax expense (benefit)                             |   |       | 77      |   |           |   | (5,584  | )          |   |   | (28,789              | )         |   |   |   |   |   |   |   |   |
|                                                     |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |   |   |   |
|      Net loss                   |   | $          | (14,495 | )      |           | $      | (9,417  | )          |   | $      | (163,032             | )         |   |   |   |   |   |   |   |   |
|                                                     |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |   |   |   |
|      Net loss per common share: |   |       |    |   |           |   |    |       |   |   |                 |      |   |   |   |   |   |   |   |   |
| Diluted                                                  |   | $          | (0.29   | )      |           | $      | (0.26   | )          |   | $      | (5.08                | )         |   |   |   |   |   |   |   |   |

|                                                         |   |            |   |   |            |   |   |   |   |   |       |   |   |     |   |
|--------------------------------------------------------------|--------|-----------------|--------|--------|-----------------|--------|--------|--------|--------|--------|------------|--------|--------|----------|--------|
|                                                         |   | Year Ended      |   |   |            |   |
|                                                         |   | January 1, 2011 |   |   | January 2, 2010 |   |   |   |   |
|                                                         |   | Sales           |   |   | % of sales      |   |   | Sales  |   |   | % of sales |   |   | % change |   |
| Product category:                                            |   |            |   |   |            |   |   |   |   |   |       |   |   |     |   |
|      WinGuard Windows and Doors     |   | $               | 109.3  |   |            |   | 62.2   | %      |   | $      | 108.2      |   |   |     | 65.2   | % |   |   | 1.0 | % |
|      Other Window and Door Products |   |            | 66.4   |   |            |   | 37.8   | %      |   |   | 57.8       |   |   |     | 34.8   | % |   |   | 14.9 | % |
|                                                         |   |            |   |   |            |   |   |   |   |   |       |   |   |     |   |   |   |   |   |   |
|      Total net sales                |   | $               | 175.7  |   |            |   | 100.0  | %      |   | $      | 166.0      |   |   |     | 100.0  | % |   |   | 5.9 | % |

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|                                                         |   | Year Ended      |   |   |            |
|--------------------------------------------------------------|--------|-----------------|--------|--------|-----------------|
|                                                         |   | January 2, 2010 |   |   | January 3, 2009 |   |   |   |   |
|                                                         |   | Sales           |   |   | % of sales      |   |   | Sales |   |   | % of sales |   |   | % change |   |
| Product category:                                            |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |
|      WinGuard Windows and Doors     |   | $               | 108.2  |   |            |   | 65.2 | % |   | $ | 151.8 |   |   |   | 69.4 | % |   |   | (28.7 | %) |
|      Other Window and Door Products |   |            | 57.8   |   |            |   | 34.8 | % |   |   | 66.8 |   |   |   | 30.6 | % |   |   | (13.5 | %) |
|                                                         |   |            |   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total net sales                |   | $               | 166.0  |   |            |   | 100.0 | % |   | $ | 218.6 |   |   |   | 100.0 | % |   |   | (24.0 | %) |

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|                            |   |                        |   |   |   |   |   |   |   |
|---------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
|                            |   | Direct Operating Cash Flows |   |
| (in millions)                   |   | 2010                        |   |   | 2009   |   |   | 2008   |   |
| Collections from customers      |   | $                           | 178.0  |   |   | $      | 170.2  |   |   | $ | 224.5 |   |
| Other cash collections          |   |                        | 2.6    |   |   |   | 2.8    |   |   |   | 3.4 |   |
| Disbursements to vendors        |   |                        | (106.5 | )      |   |   | (94.7  | )      |   |   | (122.5 | ) |
| Personnel related disbursements |   |                        | (61.2  | )      |   |   | (63.6  | )      |   |   | (80.2 | ) |
| Debt service costs              |   |                        | (4.3   | )      |   |   | (6.2   | )      |   |   | (9.1 | ) |
| Other cash activity, net        |   |                        | 3.7    |   |   |   | 1.0    |   |   |   | 3.8 |   |
|                            |   |                        |   |   |   |   |   |   |   |   |   |   |
| Cash from operations            |   | $                           | 12.3   |   |   | $      | 9.5    |   |   | $ | 19.9 |   |

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|                                                                                       |   |                                                                                                      |   |   |       |   |
|--------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|                                                                                       |   | January 1,                                                                                                |   |   | January 2, |   |
|                                                                                       |   | 2011                                                                                                      |   |   | 2010       |   |
|                                                                                       |   |                 (in thousands) |
|                                                                                       |   |                                                                                                      |   |   |       |   |
|  Tranche A2 term note payable to a bank with a payment of $131,579               |   |                                                                                                      |   |   |       |   |
|    due November 14, 2011. A lump sum payment of $49.9 million is due on     |   |                                                                                                      |   |   |       |   |
|    February 14, 2012. Interest is payable quarterly at LIBOR or the prime   |   |                                                                                                      |   |   |       |   |
|    rate plus an applicable margin. At January 1, 2011, the average rate was |   |                                                                                                      |   |   |       |   |
|    was 2.75% plus a margin of 4.00%.                                        |   | $                                                                                                         | 50,000 |   |       | $      | 68,000 |   |
|                                                                                       |   |                                                                                                      |   |   |       |   |   |   |
|                                                                                       |   | $                                                                                                         | 50,000 |   |       | $      | 68,000 |   |

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|                                                                                                                                                               |   |                   |   |   |    |   |   |           |   |   |         |   |   |         |   |   |       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|---------|--------|--------|----------------|--------|--------|--------------|--------|--------|--------------|--------|--------|------------|--------|
|                                                                                                                                                               |   | Payments Due by Period |
| Contractual Obligations                                                                                                                                            |   | Total                  |   |   | Current |   |   | 2-3 Years |   |   | 4 Years |   |   | 5 Years |   |   | Thereafter |   |
|                                                                                                                                                               |   |                   |   |   |    |   |   |           |   |   |         |   |   |         |   |   |       |   |
| Long-term debt and capital leases (1)                                                                                                                              |   | $                      | 54,179 |   |    | $      | 3,826  |           |   | $      | 50,353       |   |   | $            | -      |   |       | $      | - |   |   | $ | - |   |
| Operating leases                                                                                                                                                   |   |                   | 2,202  |   |    |   | 1,038  |           |   |   | 900          |   |   |         | 218    |   |       |   | 46 |   |   |   | - |   |
| Supply agreements                                                                                                                                                  |   |                   | 1,447  |   |    |   | 1,447  |           |   |   | -            |   |   |         | -      |   |       |   | - |   |   |   | - |   |
| Equipment purchase commitments                                                                                                                                     |   |                   | 56     |   |    |   | 56     |           |   |   | -            |   |   |         | -      |   |       |   | - |   |   |   | - |   |
|                                                                                                                                                               |   |                   |   |   |    |   |   |           |   |   |         |   |   |         |   |   |       |   |   |   |   |   |   |   |
| Total contractual cash obligations                                                                                                                                 |   | $                      | 57,884 |   |    | $      | 6,367  |           |   | $      | 51,253       |   |   | $            | 218    |   |       | $      | 46 |   |   | $ | - |   |
|                                                                                                                                                               |   |                   |   |   |    |   |   |           |   |   |         |   |   |         |   |   |       |   |   |   |   |   |   |   |
| (1) - Includes estimated future interest expense on our long-term debt assuming the weighted average interest rate of 6.75% as of January 1, 2011 does not change. |   |

| Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Judgments and Uncertainties                                                                                                                                                                                                                                                                                                                                                                                                       |   | Effect if Actual Results Differ from Assumptions                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Long lived assets We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of long-lived assets to future undiscounted net cash flows expected to be generated, based on management estimates. If such assets are considered to be impaired, the impairment recognized is the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell, and depreciation is no longer recorded.  |   |   Estimates made by management are subject to change and include such things as how future growth assumptions, operating and capital expenditure requirements, asset useful lives and other factors, affect cash flows associated with the long lived assets.  Additionally, fair value estimates,  if required, can be affected by discount rates and/or estimates of the value of similar assets. |   |   We do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses. However, if actual results are not consistent with our estimates and assumptions used in estimating future cash flows and asset fair values, we may be exposed to losses that could be material.    |

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| Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Judgments and Uncertainties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Effect if Actual Results Differ from Assumptions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Allowances for doubtful accounts and notes receivable and related reserves Losses for allowances for doubtful accounts and notes receivable and related reserves are recognized when they are incurred, which requires us to make our best estimate of probable losses inherent in our receivables.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |    We evaluate the allowance for doubtful accounts and notes receivable based on specific identification of troubled balances and historical collection experience adjusted for current conditions such as the economic climate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |    Actual collections can differ from our estimates, requiring adjustments to the allowances.  A 10% difference between actual and estimated losses derived from the estimated reserve for accounts and notes receivable would impact net loss by approximately $0.2 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Other Intangibles The impairment evaluation of the carrying amount of intangible assets with indefinite lives is conducted annually, or more frequently, if events or changes in circumstances indicate that an asset might be impaired. The evaluation is performed by comparing the carrying amount of these assets to their estimated fair values. If the estimated fair value is less than the carrying amount of the intangible asset, then an impairment charge is recorded to reduce the asset to its estimated fair value. The estimated fair value is determined using the relief from royalty method that is based upon the discounted projected cost savings (value) attributable to ownership of our trademarks, our only indefinite lived intangible assets |   |   In estimating fair value, the method we use requires us to make assumptions, the most material of which are net sales projections attributable to products sold with these trademarks, the anticipated royalty rate we would pay if the trademarks were not owned (as a percent of net sales), and a weighted average discount rate.  These assumptions are subject to change based on changes in the markets in which these products are sold, which impact our projections of future net sales and the assumed royalty rate.  Factors affecting the weighted average discount rate include assumed debt to equity ratios, risk-free interest rates and equity returns, each for market participants in our industry.  Our year-end test of trademarks, performed as of January 1, 2011, utilized a weighted average royalty rate of 4.0% and a discount rate of 16.8%.  Net sales used in the analysis were based on historical experience and a modest growth in future years.   |   |   Actual results can differ from our estimates, requiring adjustments to our assumptions.  The result of these changes could result in a material change in our calculation and an impairment in our other intangible assets. As of January 1, 2011, the estimated fair value of the trademarks exceeded book value by approximately 15%, or $6.6 million.  We believe our projected sales are reasonable based on, among other things, available information regarding our industry.  We also believe the royalty rate is appropriate and could improve over time based on market trends and information.  The weighted average discount rate was based on current financial market trends and will remain dependent on such trends in the future.  Absent offsetting changes in other factors, a 1% increase in the discount rate would decrease the estimated fair value of our trademarks by approximately $3.6 million but would not result in an impairment. |
| Warranty We have warranty obligations with respect to most of our manufactured products. Obligations vary by product components. The reserve for warranties is based on our assessment of the costs that will have to be incurred to satisfy warranty obligations on recorded net sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   The reserve is determined after assessing our warranty history and specific identification of our estimated future warranty obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   Changes to actual warranty claims incurred and interest rates could have a material impact on our estimated warranty obligations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|  Self Insurance Reserves We are primarily self-insured for employee health benefits and for years prior to 2010 for workers’ compensation.  For 2010 we are fully insured with respect to workers’ compensation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   Our workers’ compensation reserves, for the self-insured periods 2009 and prior, are accrued based on third party actuarial valuations of the expected future liabilities. Health benefits are self-insured by us up to pre-determined stop loss limits. These reserves, including incurred but not reported claims, are based on internal computations. These computations consider our historical claims experience, independent statistics, and trends.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   Changes to actual workers’ compensation or health benefit claims incurred and interest rates could have a material impact on our estimated self-insurance reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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| Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Judgments and Uncertainties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Effect if Actual Results Differ from Assumptions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stock-Based Compensation      We utilize a fair-value based approach for measuring stock-based compensation to recognize the cost of employee services received in exchange for our Company’s equity instruments.   We determine the fair value of our stock option awards at the date of grant using the Black-Scholes model. We record compensation expense over an award’s vesting period based on the award’s fair value at the date of grant. Our awards vest based only on service conditions and compensation expense is recognized on a straight-line basis for each separately vesting portion of an award.    |   |   Option-pricing models and generally accepted valuation techniques require management to make assumptions and to apply judgment to determine the fair value of our awards. These assumptions and judgments include estimating the future volatility of our stock price, expected dividend yield, future employee forfeiture rates and future employee stock option exercise behaviors. Changes in these assumptions can materially affect the fair value estimate. Share-based compensation expense is recognized only for those awards that are ultimately expected to vest, and we have applied an estimated forfeiture rate to unvested awards for the purpose of calculating compensation cost. These estimates, based mostly on historical experience, will be revised in future periods if actual forfeitures differ from the estimates. Changes in forfeiture estimates impact compensation cost in the period in which the change in estimate occurs. |   |   We do not believe there is a reasonable likelihood there will be a material change in the future estimates or assumptions we use to determine stock-based compensation expense. However, if actual results are not consistent with our estimates or assumptions, we may be exposed to changes in stock-based compensation expense that could be material. A 10% change in our stock-based compensation expense for the year ended January 1, 2011, would have affected net loss by approximately $0.2 million. |

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| · Our gross margin percentages are heavily influenced by total sales due to operating leverage of fixed costs as well as product mix, both impact and non-impact products and also vinyl frame versus aluminum frame products, as vinyl continues to increase its share of our core market.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · In the first quarter of 2011, we announced a price increase of approximately 4% effective for the second quarter of 2011 to offset the cost  increases we are seeing from our vendors,  including aluminum and glass. · During 2010 and the beginning of 2011, we entered into forward contracts for the purchase of approximately 39% of our 2011 aluminum needs at an average price of $1.00 per pound.  In addition, we have entered into zero cost collars with a ceiling of $2,700 per metric ton and a concurrent floor at $2,295 per metric ton that hedge 10% of our 2011 anticipated needs. · The North Carolina consolidation charges which are expected to total between $6.5 to $7.0 million, of which $4.4 to $4.9 million remains to be recognized in 2011 will have a negative impact on our gross margins.  |
| · A portion of our planned cost savings from our North Carolina plant closing, which we expect to realize approximately $3.0 to $3.5 million in 2011, will benefit gross margins.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

|   |   |
|--------|--------|

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|    Item 7A.    | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|----------------------------------------------|------------------------------------------------------------|

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|                                              |                                        |
|---------------------------------------------------|---------------------------------------------|
|     Item 8.    | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |

|                                                                                                                                 |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|  Report of Independent Registered Public Accounting Firm                                                                        |   |   | 32     |   |
|  Consolidated Statements of Operations for the years ended January 1, 2011, January 2, 2010 and January 3, 2009                 |   |   | 33     |   |
|  Consolidated Balance Sheets as of January 1, 2011 and January 2, 2010                                                          |   |   | 34     |   |
|  Consolidated  Statements of Cash Flows for the years ended January 1, 2011, January 2, 2010 and January 3, 2009      |   |   | 35     |   |
|  Consolidated Statements of Shareholders’ Equity for the years ended January 1, 2011, January 2, 2010 and January 3, 2009 |   |   | 36     |   |
|  Notes to Consolidated Financial Statements                                                                                     |   |   | 37     |   |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

|                         |  /s/ ERNST & YOUNG LLP |
|------------------------------|--------------------------------------|
| Certified Public Accountants |                       |
|                         |                                 |

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CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                               |   |       |    |   |       |   |    |       |   |
|--------------------------------------------------------------------|--------|------------|---------|--------|------------|--------|---------|------------|--------|
|                                                               |   | Year Ended |    |
|                                                               |   | January 1, |    |   | January 2, |   |    | January 3, |   |
|                                                               |   | 2011       |    |   | 2010       |   |    | 2009       |   |
|                                                               |   |       |    |   |       |   |    |       |   |
| Net sales                                                          |   | $          | 175,741 |   |       | $      | 166,000 |       |   | $ | 218,556 |   |
| Cost of sales                                                      |   |       | 125,403 |   |       |   | 121,622 |       |   |   | 150,277 |   |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
|      Gross margin                         |   |       | 50,338  |   |       |   | 44,378  |       |   |   | 68,279 |   |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
| Impairment charges                                                 |   |       | 5,561   |   |       |   | 742     |       |   |   | 187,748 |   |
| Selling, general and administrative expenses                       |   |       | 54,091  |   |       |   | 51,902  |       |   |   | 63,109 |   |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
|      Loss from operations                 |   |       | (9,314  | )      |       |   | (8,266  | )          |   |   | (182,578 | ) |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
| Interest expense, net                                              |   |       | 5,123   |   |       |   | 6,698   |       |   |   | 9,283 |   |
| Other (income) expense, net                                        |   |       | (19     | )      |       |   | 37      |       |   |   | (40 | ) |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
|      Loss before income taxes             |   |       | (14,418 | )      |       |   | (15,001 | )          |   |   | (191,821 | ) |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
| Income tax expense (benefit)                                       |   |       | 77      |   |       |   | (5,584  | )          |   |   | (28,789 | ) |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
|      Net loss                             |   | $          | (14,495 | )      |       | $      | (9,417  | )          |   | $ | (163,032 | ) |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
|      Net loss income per common share:    |   |       |    |   |       |   |    |       |   |   |   |   |
| Basic                                                              |   | $          | (0.29   | )      |       | $      | (0.26   | )          |   | $ | (5.08 | ) |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
| Diluted                                                            |   | $          | (0.29   | )      |       | $      | (0.26   | )          |   | $ | (5.08 | ) |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
|      Weighted average shares outstanding: |   |       |    |   |       |   |    |       |   |   |   |   |
| Basic                                                              |   |       | 50,174  |   |       |   | 36,241  |       |   |   | 32,104 |   |
|                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
| Diluted                                                            |   |       | 50,174  |   |       |   | 36,241  |       |   |   | 32,104 |   |

----

Table of Contents

|                                                                                                                |   |       |     |   |       |   |
|---------------------------------------------------------------------------------------------------------------------|--------|------------|----------|--------|------------|--------|
|                                                                                                                |   | January 1, |     |   | January 2, |   |
|                                                                                                                |   | 2011       |     |   | 2010       |   |
|                                                                                                                |   |       |     |   |       |   |
| ASSETS                                                                                                              |   |       |     |   |       |   |
| Current assets:                                                                                                     |   |       |     |   |       |   |
|      Cash and cash equivalents                                                             |   | $          | 22,012   |   |       | $      | 7,417 |   |
|      Accounts receivable, net                                                              |   |       | 13,687   |   |       |   | 14,213 |   |
|      Inventories                                                                           |   |       | 10,535   |   |       |   | 9,874 |   |
|      Prepaid expenses                                                                      |   |       | 881      |   |       |   | 916 |   |
|      Other current assets                                                                  |   |       | 3,589    |   |       |   | 3,162 |   |
|      Income tax receivable                                                                 |   |       | -        |   |       |   | 3,782 |   |
|      Assets held for sale                                                                  |   |       | 657      |   |       |   | - |   |
|      Deferred income taxes, net                                                            |   |       | -        |   |       |   | 622 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
|           Total current assets                                    |   |       | 51,361   |   |       |   | 39,986 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
|      Property, plant and equipment, net                                                    |   |       | 52,863   |   |       |   | 65,104 |   |
|      Other intangible assets, net                                                          |   |       | 64,291   |   |       |   | 67,522 |   |
|      Other assets, net                                                                     |   |       | 604      |   |       |   | 1,018 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
|           Total assets                                            |   | $          | 169,119  |   |       | $      | 173,630 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                |   |       |     |   |       |
| Current liabilities:                                                                                                |   |       |     |   |       |   |   |   |
|      Accounts payable                                                                      |   | $          | 4,979    |   |       | $      | 6,759 |   |
|      Accrued liabilities                                                                   |   |       | 11,717   |   |       |   | 9,848 |   |
|      Deferred income taxes                                                                 |   |       | 185      |   |       |   | - |   |
|      Current portion of long-term debt and capital lease obligations                       |   |       | 245      |   |       |   | 105 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
|           Total current liabilities                               |   |       | 17,126   |   |       |   | 16,712 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
|      Long-term debt and capital lease obligations                                          |   |       | 49,918   |   |       |   | 68,163 |   |
|      Deferred income taxes                                                                 |   |       | 17,130   |   |       |   | 17,937 |   |
|      Other liabilities                                                                     |   |       | 1,903    |   |       |   | 2,609 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
|           Total liabilities                                       |   |       | 86,077   |   |       |   | 105,421 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
|      Commitments and contingencies (Note 13)                                               |   |       | -        |   |       |   | - |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
| Shareholders' equity:                                                                                               |   |       |     |   |       |   |   |   |
|      Preferred stock; par value $.01 per share; 10,000 shares authorized; none outstanding |   |       | -        |   |       |   | - |   |
| Common stock; par value $.01 per share; 200,000 shares authorized; 53,670 and                                       |   |
| 35,672 shares issued and 53,654 and 35,303 shares outstanding at                                                    |   |
|        January 1, 2011 and January 2, 2010, respectively                         |   |       | 537      |   |       |   | 353 |   |
|      Additional paid-in-capital                                                            |   |       | 271,038  |   |       |   | 241,682 |   |
|      Accumulated other comprehensive loss                                                  |   |       | (1,243   | )      |       |   | (1,031 | ) |
|      Accumulated deficit                                                                   |   |       | (187,290 | )      |       |   | (172,795 | ) |
|                                                                                                                |   |       |     |   |       |   |   |   |
|           Total shareholders' equity                              |   |       | 83,042   |   |       |   | 68,209 |   |
|                                                                                                                |   |       |     |   |       |   |   |   |
|           Total liabilities and shareholders' equity              |   | $          | 169,119  |   |       | $      | 173,630 |   |

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Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                                                                |   |       |    |   |       |   |    |       |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------|---------|--------|------------|--------|---------|------------|--------|
|                                                                                                                                |   | Year Ended |    |
|                                                                                                                                |   | January 1, |    |   | January 2, |   |    | January 3, |   |
|                                                                                                                                |   | 2011       |    |   | 2010       |   |    | 2009       |   |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |
| Cash flows from operating activities:                                                                                               |   |       |    |   |       |   |    |       |   |
|      Net loss                                                                                              |   | $          | (14,495 | )      |       | $      | (9,417  | )          |   | $ | (163,032 | ) |
|      Adjustments to reconcile net loss                                                                     |   |       |    |   |       |   |    |       |   |   |   |   |
|        to net cash provided by operating activities:                                             |   |       |    |   |       |   |    |       |   |   |   |   |
|           Depreciation                                                            |   |       | 9,180   |   |       |   | 10,435  |       |   |   | 11,518 |   |
|           Amortization                                                            |   |       | 6,028   |   |       |   | 5,731   |       |   |   | 5,570 |   |
|           Provision for allowances for doubtful accounts                          |   |       | 1,678   |   |       |   | 1,722   |       |   |   | 1,526 |   |
|           Stock-based compensation                                                |   |       | 2,286   |   |       |   | 518     |       |   |   | 798 |   |
|           Amortization and write-offs of deferred financing costs                 |   |       | 773     |   |       |   | 561     |       |   |   | 724 |   |
|           Derivative financial instruments                                        |   |       | -       |   |       |   | -       |       |   |   | (40 | ) |
|           Deferred income taxes                                                   |   |       | -       |   |       |   | (1,813  | )          |   |   | (27,929 | ) |
|           Impairment charges                                                      |   |       | 5,561   |   |       |   | 742     |       |   |   | 187,748 |   |
|           (Gain) Loss on disposal of assets                                       |   |       | (5      | )      |       |   | 98      |       |   |   | 22 |   |
|           Change in operating assets and liabilities:                             |   |       |    |   |       |   |    |       |   |   |   |   |
|                Accounts receivable                       |   |       | (2,754  | )      |       |   | 3,011   |       |   |   | 4,304 |   |
|                Inventories                               |   |       | (661    | )      |       |   | (351    | )          |   |   | (218 | ) |
|                Prepaid expenses and other current assets |   |       | 4,562   |   |       |   | (2,973  | )          |   |   | (711 | ) |
|                Accounts payable and accrued liabilities  |   |       | 188     |   |       |   | 1,240   |       |   |   | (408 | ) |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |   |   |   |
| Net cash provided by operating activities                                                                                           |   |       | 12,341  |   |       |   | 9,504   |       |   |   | 19,872 |   |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |   |   |   |
| Cash flows from investing activities:                                                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
|      Purchases of property, plant and equipment                                                            |   |       | (3,197  | )      |       |   | (2,330  | )          |   |   | (4,485 | ) |
|      Acquisition of intangible assets                                                                      |   |       | (2,597  | )      |       |   | -       |       |   |   | - |   |
|      Acquisition of business                                                                               |   |       | -       |   |       |   | (1,452  | )          |   |   | - |   |
|      Net change in margin account for derivative financial instruments                                     |   |       | (250    | )      |       |   | 4,098   |       |   |   | (4,098 | ) |
|      Proceeds from sales of equipment                                                                      |   |       | 46      |   |       |   | 79      |       |   |   | 58 |   |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |   |   |   |
| Net cash (used in)/provided by investing activities                                                                                 |   |       | (5,998  | )      |       |   | 395     |       |   |   | (8,525 | ) |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |   |   |   |
| Cash flows from financing activities:                                                                                               |   |       |    |   |       |   |    |       |   |   |   |   |
|      Payments of long-term debt                                                                            |   |       | (18,000 | )      |       |   | (22,000 | )          |   |   | (40,000 | ) |
|      Payments of financing costs                                                                           |   |       | (897    | )      |       |   | -       |       |   |   | (634 | ) |
|      Payments of capital leases                                                                            |   |       | (105    | )      |       |   | (98     | )          |   |   | (55 | ) |
|      Purchases of treasury stock                                                                           |   |       | (3      | )      |       |   | (6      | )          |   |   | - |   |
|      Adjustment to and net proceeds from issuance of common stock                                          |   |       | 27,257  |   |       |   | (6      | )          |   |   | 29,281 |   |
|      Proceeds from exercise of stock options                                                               |   |       | -       |   |       |   | -       |       |   |   | 210 |   |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |   |   |   |
| Net cash provided by/(used in) financing activities                                                                                 |   |       | 8,252   |   |       |   | (22,110 | )          |   |   | (11,198 | ) |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |   |   |   |
| Net increase/(decrease) in cash and cash equivalents                                                                                |   |       | 14,595  |   |       |   | (12,211 | )          |   |   | 149 |   |
| Cash and cash equivalents at beginning of period                                                                                    |   |       | 7,417   |   |       |   | 19,628  |       |   |   | 19,479 |   |
| Cash and cash equivalents at end of period                                                                                          |   | $          | 22,012  |   |       | $      | 7,417   |       |   | $ | 19,628 |   |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |   |   |   |
| Supplemental cash flow information:                                                                                                 |   |       |    |   |       |   |    |       |   |   |   |   |
|      Interest paid                                                                                         |   | $          | 3,991   |   |       | $      | 6,224   |       |   | $ | 9,102 |   |
|                                                                                                                                |   |       |    |   |       |   |    |       |   |   |   |   |
|      Income taxes refunded                                                                                 |   | $          | (3,662  | )      |       | $      | (1,062  | )          |   | $ | (3,270 | ) |

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Table of Contents

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

|                                      |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |
|-------------------------------------------|--------|--------------|------------|--------|----------|--------|--------|-------------|--------|--------|---------------------|--------|--------|--------------------|----------|--------|--------|--------|
|                                      |   |         |       |   |     |   |   | Additional  |   |   |                |   |   |               |     |   |   |   |
|                                      |   |         |       |   |     |   |   | Paid-in     |   |   |                |   |   |               |     |   |   |   |
|                                      |   |         |       |   |     |   |   | Capital     |   |   |                |   |   |   Accumulated |     |   |
|                                      |   |         |       |   |     |   |   | Net of      |   |   |                |   |   |  Other        |     |   |   |   |
|                                      |   | Common stock |       |   | Treasury |   |   | Accumulated |   |   |  Comprehensive |   |
|                                      |   | Shares       |       |   | Amount   |   |   | Stock       |   |   | Deficit             |   |   | Loss               |     |   | Total  |   |
| Balance at December 29, 2007              |   |         | 27,620,096 |   |     | $      | 276    |        |   | $      | 210,964             |   |   | $                  | (346     | )      |   | $      | (422 | ) |   | $ | 210,472 |   |
| Exercise of stock options, including      |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   |   |   |
| tax benefit of $0 from the                |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   |   |   |
| exercise of stock options                 |   |         | 479,417    |   |     |   | 5      |        |   |   | 205                 |   |   |               |     |   |   |   |   |   |   |   | 210 |   |
| Vesting of restricted stock               |   |         | 15,149     |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   |   |   |
| Stock-based compensation                  |   |         |       |   |     |   |   |        |   |   | 798                 |   |   |               |     |   |   |   |   |   |   |   | 798 |   |
| Issuance of common stock                  |   |         | 7,082,687  |   |     |   | 71     |        |   |   | 29,210              |   |   |               |     |   |   |   |   |   |   |   | 29,281 |   |
| Comprehensive income, net of tax effect:  |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |
| Change related to interest rate swap      |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   | 74 |   |   |   | 74 |   |
| Change related to aluminum                |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   |   |   |
|     forward contracts |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   | (3,618 | ) |   |   | (3,618 | ) |
| Net loss                                  |   |         |       |   |     |   |   |        |   |   |                |   |   |               | (163,032 | )      |   |   |   |   |   |   | (163,032 | ) |
| Total comprehensive loss                  |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   | (166,576 | ) |
| Balance at January 3, 2009                |   |         | 35,197,349 |   |     | $      | 352    |        |   | $      | 241,177             |   |   | $                  | (163,378 | )      |   | $      | (3,966 | ) |   | $ | 74,185 |   |
| Vesting of restricted stock               |   |         | 108,694    |   |     |   | 1      |        |   |   | (1                  | )      |   |               |     |   |   |   |   |   |   |   |   |   |
| Acquisition of treasury stock             |   |         | (3,339     | )      |     |   |   |        |   |   | (6                  | )      |   |               |     |   |   |   |   |   |   |   | (6 | ) |
| Stock-based compensation                  |   |         |       |   |     |   |   |        |   |   | 518                 |   |   |               |     |   |   |   |   |   |   |   | 518 |   |
| Rights offering costs                     |   |         |       |   |     |   |   |        |   |   | (6                  | )      |   |               |     |   |   |   |   |   |   |   | (6 | ) |
| Comprehensive loss, net of tax effect:    |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |
| Change related to aluminum                |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   |   |   |
|     forward contracts |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   | 2,935 |   |   |   | 2,935 |   |
| Net loss                                  |   |         |       |   |     |   |   |        |   |   |                |   |   |               | (9,417   | )      |   |   |   |   |   |   | (9,417 | ) |
| Total comprehensive loss                  |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   | (6,482 | ) |
| Balance at January 2, 2010                |   |         | 35,302,704 |   |     | $      | 353    |        |   | $      | 241,682             |   |   | $                  | (172,795 | )      |   | $      | (1,031 | ) |   | $ | 68,209 |   |
| Vesting of restricted stock               |   |         | 16,554     |   |     |   | 1      |        |   |   | (1                  | )      |   |               |     |   |   |   |   |   |   |   | - |   |
| Acquisition of treasury stock             |   |         | (1,130     | )      |     |   |   |        |   |   | (3                  | )      |   |               |     |   |   |   |   |   |   |   | (3 | ) |
| Stock-based compensation                  |   |         |       |   |     |   |   |        |   |   | 2,286               |   |   |               |     |   |   |   |   |   |   |   | 2,286 |   |
| Rights offering                           |   |         | 18,336,368 |   |     |   | 183    |        |   |   | 27,321              |   |   |               |     |   |   |   |   |   |   |   | 27,504 |   |
| Rights offering costs                     |   |         |       |   |     |   |   |        |   |   | (247                | )      |   |               |     |   |   |   |   |   |   |   | (247 | ) |
| Comprehensive income, net of tax effect:  |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |
| Change related to aluminum                |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   |   |   |
|     forward contracts |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   | (212 | ) |   |   | (212 | ) |
| Net loss                                  |   |         |       |   |     |   |   |        |   |   |                |   |   |               | (14,495  | )      |   |   |   |   |   |   | (14,495 | ) |
| Total comprehensive loss                  |   |         |       |   |     |   |   |        |   |   |                |   |   |               |     |   |   |   |   |   |   |   | (14,707 | ) |
| Balance at January 1, 2011                |   |         | 53,654,496 |   |     | $      | 537    |        |   | $      | 271,038             |   |   | $                  | (187,290 | )      |   | $      | (1,243 | ) |   | $ | 83,042 |   |

----

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|   | 1.  Description of Business |
|--------|---------------------------------------|

|   |                                                     |
|--------|----------------------------------------------------------|
|   | 2.  Summary of Significant Accounting Policies |

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Table of Contents

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Table of Contents

|                                       |   |           |   |      |     |   |   |           |   |   |       |       |
|--------------------------------------------|--------|----------------|--------|-----------|----------|--------|--------|----------------|--------|--------|------------|------------|
|                                       |   |           |   |      |     |   |   | January 1,     |   |   | January 2, |       |
|                                       |   |           |   |      |     |   |   | 2011           |   |   | 2010       |       |
|                                       |   |           |   |      |     |   |   | (in thousands) |   |
|                                       |   |           |   |      |     |   |   |           |   |   |       |       |
| Accounts receivable                        |   |           |   |      |     |   |   | $              | 15,132 |   |       | $          | 15,678 |   |
| Less: Allowance for doubtful accounts |   |           |   |      |     |   | (1,445 | )              |   |   | (1,465     | )          |
|                                       |   |           |   |      |     |   |   |           |   |   |       |       |   |   |
|                                       |   |           |   |      |     |   |   | $              | 13,687 |   |       | $          | 14,213 |   |
|                                       |   |           |   |      |     |   |   |           |   |   |       |       |   |   |
|                                       |   | Balance at     |   |      |     |   |   |           |   |   |       | Balance at |   |
|                                       |   | Beginning      |   | Costs and |     |   |   |           |   |   | End of     |       |
| Allowance for Doubtful Accounts            |   | of Period      |   |      | expenses |   |   | Deductions(1)  |   | Period |       |
|                                       |   | (in thousands) |   |
| Year ended January 1, 2011                 |   | $              | 1,465  |      |     | $      | 1,129  |           |   | $      | (1,149     | )          |   | $ | 1,445 |   |
|                                       |   |           |   |      |     |   |   |           |   |   |       |       |   |   |   |   |
| Year ended January 2, 2010                 |   | $              | 1,224  |      |     | $      | 1,332  |           |   | $      | (1,091     | )          |   | $ | 1,465 |   |
|                                       |   |           |   |      |     |   |   |           |   |   |       |       |   |   |   |   |
| Year ended January 3, 2009                 |   | $              | 416    |      |     | $      | 1,244  |           |   | $      | (436       | )          |   | $ | 1,224 |   |

| (1)   | Represents uncollectible accounts charged against the allowance for doubtful accounts, net of recoveries. |
|-----------------|-----------------------------------------------------------------------------------------------------------|

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Table of Contents

|                       |                     |   |               |   |   |        |   |   |        |   |   |          |   |   |   |
|----------------------------|--------------------------|--------|--------------------|--------|--------|-------------|--------|--------|-------------|--------|--------|---------------|--------|--------|--------|
| Accrued Warranty           | Beginning of Period |   | Charged to Expense |   |   | Adjustments |   |   | Settlements |   |   | End of Period |   |
|                       | (in thousands)           |   |
| Year ended January 1, 2011 |                     | $      | 4,041              |   |   | $           | 2,624  |   |        | $      | 131    |          |   | $      | (2,693 | ) |   | $ | 4,103 |   |
|                       |                     |   |               |   |   |        |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| Year ended January 2, 2010 |                     | $      | 4,224              |   |   | $           | 2,490  |   |        | $      | 21     |          |   | $      | (2,694 | ) |   | $ | 4,041 |   |
|                       |                     |   |               |   |   |        |   |   |        |   |   |          |   |   |   |   |   |   |   |   |
| Year ended January 3, 2009 |                     | $      | 4,986              |   |   | $           | 3,278  |   |        | $      | (575   | )             |   | $      | (3,465 | ) |   | $ | 4,224 |   |

|             |   |           |   |   |       |   |
|------------------|--------|----------------|--------|--------|------------|--------|
|             |   | January 1,     |   |   | January 2, |   |
|             |   | 2011           |   |   | 2010       |   |
|             |   | (in thousands) |   |
|             |   |           |   |   |       |   |
| Raw materials    |   | $              | 9,273  |   |       | $      | 8,661 |   |
| Work in progress |   |           | 293    |   |       |   | 259 |   |
| Finished goods   |   |           | 969    |   |       |   | 954 |   |
|             |   |           |   |   |       |   |   |   |
|             |   | $              | 10,535 |   |       | $      | 9,874 |   |

| Building and improvements | 5 to 40 years |
|---------------------------|---------------|
| Furniture and fixtures    | 3 to 10 years |
| Vehicles                  |          |   | 3 to 10 years |
| Computer Software         |          |           3 years |

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|               |                                                       |   |                                                                                   |   |                                                                         |   |                                                                                               |
|--------------------|------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
|               |                                                       |   |                                                                                   |   |                                                                         |   |                                                                                               |
|               | Fair Value Measurements at Reporting Date                  |
|               | of Asset (Liability) Using:                                |
|               |                                                       |   | Quoted                                                                                 |   | Significant                                                                  |   |                                                                                               |
|               |                                                       |   | Prices inActive                                                                        |   | Other Observable                                                             |   | SignificantUnobservable                                                                            |
|               | January 2,                                                 |   |  Markets                                                                          |   | Inputs                                                                       |   | Inputs                                                                                             |
| Description        | 2010                                                       |   | (Level 1)                                                                              |   | (Level 2)                                                                    |   | (Level 3)                                                                                          |
|               | (in thousands)                                             |
|               |                                                       |   |                                                                                   |   |                                                                         |   |                                                                                               |
| Lexington Property |  $        700 |   |  $             - |   |  $           700 |   |  $               - |

|               |   |                                      |   |   |                    |   |   |                         |   |                     |      |   |
|--------------------|--------|-------------------------------------------|--------|--------|-------------------------|--------|--------|------------------------------|--------|--------------------------|-----------|--------|
|               |   | Fair Value Measurements at Reporting Date |   |
|               |   | of Asset (Liability) Using:               |   |
|               |   |                                      |   |   | Quoted Prices in Active |   |   | Significant Other Observable |   | Significant Unobservable |      |
|               |   | January 1,                                |   |   | Markets                 |   | Inputs |                         |   | Inputs                   |      |
| Description        |   | 2011                                      |   |   | (Level 1)               |   |   | (Level 2)                    |   |                     | (Level 3) |   |
|               |   | (in thousands)                            |   |   |                    |   |   |                         |   |                     |      |   |
|               |   |                                      |   |   |                    |   |   |                         |   |                     |      |   |
| Salisbury Property |   | $                                         | 5,500  |   |                    | $      | -      |                         |   | $                        | 5,500     |   |   | $ | - |   |
| Lexington Property |   |                                      | 657    |   |                    |   | -      |                         |   |                     | 657       |   |   |   | - |   |
|               |   | $                                         | 6,157  |   |                    | $      | -      |                         |   | $                        | 6,157     |   |   | $ | - |   |

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|   |                                                                                                                                           |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (i) external direct costs of materials and services consumed in developing or obtaining computer software,                                |
|   |                                                                                                                                           |
|   | (ii) payroll and other related costs for employees who are directly associated with and who devote time to the software project, and |
|   |                                                                                                                                           |
|   | (iii) interest costs incurred, when material, while developing internal-use software.                                                |

----

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|                                |   |           |   |
|-------------------------------------|--------|----------------|--------|
|                                |   | (in thousands) |   |
|                                |   |           |   |
| 2011                                |   | $              | 732    |   |
| 2012                                |   |           | 59     |   |
|                                |   |           |   |   |
|      Total |   | $              | 791    |   |

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----

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|                                                        |   |       |    |   |       |   |   |       |   |
|-------------------------------------------------------------|--------|------------|---------|--------|------------|--------|--------|------------|--------|
|                                                        |   | Year Ended |    |
|                                                        |   | January 1, |    |   | January 2, |   |   | January 3, |   |
|                                                        |   | 2011       |    |   | 2010       |   |   | 2009       |   |
| (in thousands, except per share amounts)                    |   |       |    |   |       |   |   |       |   |
|      Numerator:                    |   |       |    |   |       |   |   |       |   |
| Net loss                                                    |   | $          | (14,495 | )      |       | $      | (9,417 | )          |   | $ | (163,032 | ) |
|                                                        |   |       |    |   |       |   |   |       |   |   |   |   |
|      Denominator:                  |   |       |    |   |       |   |   |       |   |   |   |   |
| Weighted-average common shares - Basic                      |   |       | 50,174  |   |       |   | 36,241 |       |   |   | 32,104 |   |
| Add:  Dilutive effect of stock compensation plans |   |       | -       |   |       |   | -      |       |   |   | - |   |
|                                                        |   |       |    |   |       |   |   |       |   |   |   |   |
| Weighted-average common shares - Diluted                    |   |       | 50,174  |   |       |   | 36,241 |       |   |   | 32,104 |   |
|                                                        |   |       |    |   |       |   |   |       |   |   |   |   |
|      Net loss per common share:    |   |       |    |   |       |   |   |       |   |   |   |   |
| Basic                                                       |   | $          | (0.29   | )      |       | $      | (0.26  | )          |   | $ | (5.08 | ) |
|                                                        |   |       |    |   |       |   |   |       |   |   |   |   |
| Diluted                                                     |   | $          | (0.29   | )      |       | $      | (0.26  | )          |   | $ | (5.08 | ) |

|   |   |
|--------|--------|

----

Table of Contents

|   | 3.  Recently Issued Accounting Pronouncements |
|--------|---------------------------------------------------------|

|   |                                           |
|--------|------------------------------------------------|
|   | 4.  Consolidation and Restructurings |

----

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|                                                             |   | Beginning of Year |   |   | Charged to Expense |   |   | Disbursed in Cash |   |   | End of Year |   |
|------------------------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|--------|-------------------|--------|--------|------------------|--------|
| (in thousands)                                                   |   |
|      Year ended January 1, 2011:        |   |              |   |   |               |   |   |              |   |   |             |   |
| 2009 Restructuring                                               |   | $                 | 898    |   |               | $      | -      |              |   | $      | (898             | )      |   | $ | - |   |
| 2010 Consolidation                                               |   |              | -      |   |               |   | 2,053  |              |   |   | (241             | )      |   |   | 1,812 |   |
|      For the year ended January 1, 2011 |   | $                 | 898    |   |               | $      | 2,053  |              |   | $      | (1,139           | )      |   | $ | 1,812 |   |
|                                                             |   |              |   |   |               |   |   |              |   |   |             |   |   |   |   |   |
|      Year ended January 2, 2010:        |   |              |   |   |               |   |   |              |   |   |             |   |   |   |   |   |
| 2008 Restructuring                                               |   | $                 | 332    |   |               | $      | -      |              |   | $      | (332             | )      |   | $ | - |   |
| 2009 Restructuring                                               |   |              | -      |   |               |   | 5,395  |              |   |   | (4,497           | )      |   |   | 898 |   |
|      For the year ended January 2, 2010 |   | $                 | 332    |   |               | $      | 5,395  |              |   | $      | (4,829           | )      |   | $ | 898 |   |
|                                                             |   |              |   |   |               |   |   |              |   |   |             |   |   |   |   |   |
|      Year ended January 3, 2009:        |   |              |   |   |               |   |   |              |   |   |             |   |   |   |   |   |
| 2007 Restructuring                                               |   | $                 | 850    |   |               | $      | -      |              |   | $      | (850             | )      |   | $ | - |   |
| 2008 Restructuring                                               |   |              | -      |   |               |   | 2,131  |              |   |   | (1,799           | )      |   |   | 332 |   |
|      For the year ended January 3, 2009 |   | $                 | 850    |   |               | $      | 2,131  |              |   | $      | (2,649           | )      |   | $ | 332 |   |

|   |                                                    |
|--------|---------------------------------------------------------|
|   | 5.   Property, Plant and Equipment  |

|                          |   |           |    |   |       |   |
|-------------------------------|--------|----------------|---------|--------|------------|--------|
|                          |   | January 1,     |    |   | January 2, |   |
|                          |   | 2011           |    |   | 2010       |   |
|                          |   | (in thousands) |
|                          |   |           |    |   |       |   |
| Land                          |   | $              | 3,604   |   |       | $      | 3,804 |   |
| Buildings and improvements    |   |           | 42,707  |   |       |   | 47,700 |   |
| Machinery and equipment       |   |           | 50,056  |   |       |   | 49,063 |   |
| Vehicles                      |   |           | 5,674   |   |       |   | 5,915 |   |
| Software                      |   |           | 12,250  |   |       |   | 11,367 |   |
| Construction in progress      |   |           | 953     |   |       |   | 511 |   |
|                          |   |           |    |   |       |   |   |   |
|                          |   |           | 115,244 |   |       |   | 118,360 |   |
| Less accumulated depreciation |   |           | (62,381 | )      |       |   | (53,256 | ) |
|                          |   |           |    |   |       |   |   |   |
|                          |   | $              | 52,863  |   |       | $      | 65,104 |   |

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| (in thousands)                                    |   | Fair Values |   |
|---------------------------------------------------|--------|-------------|--------|
| Inventory                                         |   | $           | 254    |   |
| Property and equipment                            |   |        | 623    |   |
| Identifiable intangibles                          |   |        | 575    |   |
|      Net assets acquired |   |        | 1,452  |   |
| Purchase price                                    |   |        | 1,452  |   |
|      Goodwill            |   | $           | -      |   |

----

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|   | 7.   Goodwill and Other Intangible Assets  |
|--------|----------------------------------------------------------------|

|                                                                                     |                 |       |    |   |       |   |    |        |   |
|------------------------------------------------------------------------------------------|----------------------|------------|---------|--------|------------|--------|---------|-------------|--------|
|                                                                                     |                 | January 1, |    |   | January 2, |   |    | Useful Life |   |
|                                                                                     |                 | 2011       |    |   | 2010       |   |    | (in years)  |   |
|                                                                                     |  (in thousands) |       |    |
| Goodwill                                                                                 |                 | $          | -       |   |       | $      | -       |        |   | indefinite |   |
|                                                                                     |                 |       |    |   |       |   |    |        |   |   |   |
|      Other intangible assets:                                   |                 |       |    |   |       |   |    |        |   |   |   |
| Trademarks                                                                               |                 | $          | 44,400  |   |       | $      | 44,400  |        |   | indefinite |   |
|                                                                                     |                 |       |    |   |       |   |    |        |   |   |   |
| Customer relationships                                                                   |                 |       | 55,700  |   |       |   | 55,700  |        |   |   | 10 |   |
| Less:  Accumulated amortization                                                |                 |       | (38,562 | )      |       |   | (32,992 | )           |   |   |   |   |
|                                                                                     |                 |       |    |   |       |   |    |        |   |   |   |   |
|           Subtotal                     |                 |       | 17,138  |   |       |   | 22,708  |        |   |   |   |   |
|                                                                                     |                 |       |    |   |       |   |    |        |   |   |   |   |
| Hurricane technology                                                                     |                 |       | 575     |   |       |   | 575     |        |   |   | 1.4 |   |
| Less:  Accumulated amortization                                                |                 |       | (575    | )      |       |   | (161    | )           |   |   |   |   |
|           Subtotal                     |                 |       | -       |   |       |   | 414     |        |   |   |   |   |
|                                                                                     |                 |       |    |   |       |   |    |        |   |   |   |   |
| Hurricane intellectual assets                                                            |                 |       | 2,797   |   |       |   | -       |        |   |   | 3 |   |
| Less: Accumulated amortization                                                           |                 |       | (44     | )      |       |   | -       |        |   |   |   |   |
|                                                                                     |                 |       | 2,753   |   |       |   | -       |        |   |   |   |   |
|                                                                                     |                 |       |    |   |       |   |    |        |   |   |   |   |
|           Other intangible assets, net |                 | $          | 64,291  |   |       | $      | 67,522  |        |   |   |   |   |

----

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|                                |   |           |   |
|-------------------------------------|--------|----------------|--------|
|                                |   | (in thousands) |   |
|                                |   |           |   |
| 2011                                |   | $              | 6,502  |   |
| 2012                                |   |           | 6,502  |   |
| 2013                                |   |           | 6,459  |   |
| 2014                                |   |           | 428    |   |
|                                |   |           |   |   |
|      Total |   | $              | 19,891 |   |

|   |   |
|--------|--------|

----

Table of Contents

|   | 8.   Accrued Liabilities |
|--------|-----------------------------------------|

|                                      |   |           |   |   |       |   |
|-------------------------------------------|--------|----------------|--------|--------|------------|--------|
|                                      |   | January 1,     |   |   | January 2, |   |
|                                      |   | 2011           |   |   | 2010       |   |
|                                      |   | (in thousands) |   |
|                                      |   |           |   |   |       |   |
| Accrued payroll and benefits              |   | $              | 4,735  |   |       | $      | 2,950 |   |
| Accrued warranty                          |   |           | 2,540  |   |       |   | 2,550 |   |
| Accrued consolidation/restructuring costs |   |           | 1,812  |   |       |   | 898 |   |
| Provision for loss contract               |   |           | 215    |   |       |   | 875 |   |
| Accrued health claims insurance payable   |   |           | 711    |   |       |   | 846 |   |
| Accrued property tax                      |   |           | 695    |   |       |   | 801 |   |
| Other                                     |   |           | 1,009  |   |       |   | 928 |   |
|                                      |   |           |   |   |       |   |   |   |
|                                      |   | $              | 11,717 |   |       | $      | 9,848 |   |

|   | 9.   Long-Term Debt |
|--------|------------------------------------|

|                                                                                    |   |           |   |   |       |    |
|-----------------------------------------------------------------------------------------|--------|----------------|--------|--------|------------|---------|
|                                                                                    |   | January 1,     |   |   | January 2, |    |
|                                                                                    |   | 2011           |   |   | 2010       |    |
|                                                                                    |   | (in thousands) |   |
|                                                                                    |   |           |   |   |       |    |
| Tranche A2 term note payable to a bank with a payment of                                |   |           |   |   |       |    |
|   of $131,579 due  November 14, 2011.  A lump sum payment |   |           |   |   |       |    |
|   of $49.9 million is due on February 14, 2012.  Interest is        |   |           |   |   |       |    |
|   payable quarterly at LIBOR or the prime rate plus an                        |   |           |   |   |       |    |
|   applicable margin.  At January 1, 2011, the average rate was      |   |           |   |   |       |    |
|   2.75% plus a margin of 4.00%.                                               |   | $              | 50,000 |   |       | $  | 68,000 |   |
|                                                                                    |   |           |   |   |       |    |   |   |
| Obligations under capital leases                                                        |   |           | 163    |   |       |    | 268 |   |
|                                                                                    |   |           |   |   |       |    |   |   |
|                                                                                    |   |           | 50,163 |   |       |    | 68,268 |   |
| Less current portion of long-term debt and capital leases                               |   |           | (245   | )      |       |    | (105 | ) |
|                                                                                    |   |           |   |   |       |    |   |   |
|                                                                                    |   | $              | 49,918 |   |       | $       | 68,163 |   |

----

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----

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|                                |   |   |   |
|-------------------------------------|--------|--------|--------|
| 2011                                |   | $      | 245    |   |
| 2012                                |   |   | 49,918 |   |
|                                |   |   |   |   |
|      Total |   | $      | 50,163 |   |
|                                |   |   |   |   |

|   |                                        |
|--------|---------------------------------------------|
|   | 10.   Interest Expense  |

|                                                |   |       |   |   |       |   |   |       |   |
|-----------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                                |   | Year Ended |   |
|                                                |   | January 1, |   |   | January 2, |   |   | January 3, |   |
|                                                |   | 2011       |   |   | 2010       |   |   | 2009       |   |
|                                                |   |       |   |   |       |   |   |       |   |
| Long-term debt                                      |   | $          | 4,031  |   |       | $      | 5,780  |       |   | $ | 8,394 |   |
| Debt fees                                           |   |       | 422    |   |       |   | 475    |       |   |   | 444 |   |
| Amortization of deferred financing costs            |   |       | 773    |   |       |   | 561    |       |   |   | 724 |   |
| Interest Income                                     |   |       | (72    | )      |       |   | (53    | )          |   |   | (165 | ) |
|                                                |   |       |   |   |       |   |   |       |   |   |   |   |
|      Interest expense      |   |       | 5,154  |   |       |   | 6,763  |       |   |   | 9,397 |   |
| Capitalized interest                                |   |       | (31    | )      |       |   | (65    | )          |   |   | (114 | ) |
|                                                |   |       |   |   |       |   |   |       |   |   |   |   |
|      Interest expense, net |   | $          | 5,123  |   |       | $      | 6,698  |       |   | $ | 9,283 |   |

|   | 11.   Derivatives  |
|--------|----------------------------------------|

----

Table of Contents

|                                                                              |                   |   |       |   |   |       |   |
|-----------------------------------------------------------------------------------|------------------------|--------|------------|--------|--------|------------|--------|
|                                                                              |                   |   | January 1, |   |   | January 2, |   |
|                                                                              |                   |   | 2011       |   |   | 2010       |   |
|                                                                              |                   |   |       |   |   |       |   |
| Derivatives in a net asset (liability) position                                   | Balance Sheet Location |   |       |   |   |       |   |
| Hedging instruments:                                                              |                   |   |       |   |   |       |   |
|      Aluminum forward contracts                          | Other Current Assets   |   | $          | 300    |   |       | $      | 512 |   |
|      Cash on deposit related to payments of margin calls | Other Current Assets   |   |       | 250    |   |       |   | - |   |
|                                                                              |                   |   |       |   |   |       |   |   |   |
|      Total hedging instruments                           |                   |   | $          | 550    |   |       | $      | 512 |   |

----

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|                                                |   |                                      |   |   |                    |                    |   |                         |                         |   |                     |                     |
|-----------------------------------------------------|--------|-------------------------------------------|--------|--------|-------------------------|-------------------------|--------|------------------------------|------------------------------|--------|--------------------------|--------------------------|
|                                                |   | Fair Value Measurements at Reporting Date |   |
|                                                |   | of Asset (Liability) Using:               |   |
|                                                |   |                                      |   |   | Quoted Prices in Active |                    |   | Significant Other Observable |                         |   | Significant Unobservable |                     |
|                                                |   | January 1,                                |   |   |  Markets           |                    |   | Inputs                       |                         |   | Inputs                   |                     |
| Description                                         |   | 2011                                      |   |   | (Level 1)               |                    |   | (Level 2)                    |                         |   | (Level 3)                |                     |
|                                                |   | (in thousands)                            |   |   |                    |                    |   |                         |                         |   |                     |                     |
|                                                |   |                                      |   |   |                    |                    |   |                         |                         |   |                     |                     |
| Forward contracts for aluminum                      |   | $                                         | 300    |   |                    | $                       | -      |                         |                         | $      | 300                      |                     |   | $ | - |   |
| Cash on deposit related to payments of margin calls |   |                                      | 250    |   |                    |                    |   |                         |                         |   |                     |                     |   |   |   |   |
| Forward contracts for aluminum, net asset           |   | $                                         | 550    |   |                    |                    |   |                         |                         |   |                     |                     |   |   |   |   |
|                                                |   |                                      |   |   |                    |                    |   |                         |                         |   |                     |                     |   |   |   |   |
|                                                |   |                                      |   |   |                    | Quoted Prices in Active |   |                         | Significant Other Observable |   |                     | Significant Unobservable |   |
|                                                |   | January 2,                                |   |   |  Markets           |                    |   | Inputs                       |                         |   | Inputs                   |                     |
| Description                                         |   |                                      | 2010   |   |                    | (Level 1)               |   |                         | (Level 2)                    |   |                     | (Level 3)                |   |
|                                                |   | (in thousands)                            |   |   |                    |                    |   |                         |                         |   |                     |                     |   |   |   |
|                                                |   |                                      |   |   |                    |                    |   |                         |                         |   |                     |                     |   |   |   |   |
| Forward contracts for aluminum                      |   | $                                         | 512    |   |                    | $                       | -      |                         |                         | $      | 512                      |                     |   | $ | - |   |
| Cash on deposit related to payments of margin calls |   |                                      | -      |   |                    |                    |   |                         |                         |   |                     |                     |   |   |   |   |
| Forward contracts for aluminum, net liability       |   | $                                         | 512    |   |                    |                    |   |                         |                         |   |                     |                     |   |   |   |   |
|                                                |   |                                      |   |   |                    |                    |   |                         |                         |   |                     |                     |   |   |   |   |

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|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               |   |   |    |   |
|--------------------|--------|-------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|--------|--------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|--------|---------|--------|
|               |   | Derivatives in Cash Flow Hedging Relationships                                |   |
|               |   | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) |   | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |   | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               |   |   |    |   |
|               |   | Year Ended                                                                    |   |                                                                                         |   | Year Ended                                                                                 |   |
|               |   | Jan 1,                                                                        |   |                                                                                         | Jan 2, |                                                                                       |   | Jan. 3, |   |   |   | Jan 1, |                                                                                 |   | Jan 2,                                                                             |   |   | Jan. 3, |   |
|               |   | 2011                                                                          |   |                                                                                         | 2010   |                                                                                       |   | 2009    |   |   |   | 2011   |                                                                                 |   | 2010                                                                               |   |   | 2009    |   |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               |   |   |    |   |
| Aluminum contracts |   | $                                                                             | 38     |                                                                                         |   | $                                                                                          | 1,373  |    |   | $      | (3,938 | )      | Cost of sales                                                                        |   | $                                                                                  | 231    |   |    | $      | (3,338 | ) |   | $ | (320 | ) |
| Interest rate swap |   |                                                                          | -      |                                                                                         |   |                                                                                       | -      |    |   |   | 74     |   |                                                                                 |   |                                                                               | -      |   |    |   | - |   |   |   | - |   |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               |   |   |    |   |   |   |   |   |   |   |
|               |   | $                                                                             | 38     |                                                                                         |   | $                                                                                          | 1,373  |    |   | $      | (3,864 | )      |                                                                                 |   | $                                                                                  | 231    |   |    | $      | (3,338 | ) |   | $ | (320 | ) |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               |   |   |    |   |   |   |   |   |   |   |
|               |   | Derivatives in Cash Flow Hedging Relationships                                |   |                                                                                         |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   | Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) |   | Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               |   |   |    |   |   |   |   |   |   |   |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   | Year Ended                                                                         |   |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   | Jan 1,                                                                             |   |   | Jan 2,  |   |   | Jan. 3, |   |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               | 2011   |   |    |   | 2010 |   |   |   | 2009 |   |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               |   |   |    |   |   |   |   |   |   |   |
| Aluminum contracts |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   | Other income or other expense                                                        |   | $                                                                                  | 19     |   |    | $      | (37 | ) |   | $ | - |   |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   |                                                                               |   |   |    |   |   |   |   |   |   |   |
|               |   |                                                                          |   |                                                                                         |   |                                                                                       |   |    |   |   |   |   |                                                                                 |   | $                                                                                  | 19     |   |    | $      | (37 | ) |   | $ | - |   |

|   | 12.   Income Taxes  |
|--------|-----------------------------------------|

|                                                       |   |       |   |   |       |   |   |       |   |
|------------------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                                       |   | Year Ended |   |
|                                                       |   | January 1, |   |   | January 2, |   |   | January 3, |   |
|                                                       |   | 2011       |   |   | 2010       |   |   | 2009       |   |
| Current:                                                   |   |       |   |   |       |   |   |       |   |
|   Federal                                        |   | $          | 77     |   |       | $      | (3,739 | )          |   | $ | (897 | ) |
|   State                                          |   |       | -      |   |       |   | (32    | )          |   |   | 37 |   |
|                                                       |   |       |   |   |       |   |   |       |   |   |   |   |
|                                                       |   |       | 77     |   |       |   | (3,771 | )          |   |   | (860 | ) |
| Deferred:                                                  |   |       |   |   |       |   |   |       |   |   |   |   |
|   Federal                                        |   |       | -      |   |       |   | (1,527 | )          |   |   | (24,064 | ) |
|   State                                          |   |       | -      |   |       |   | (286   | )          |   |   | (3,865 | ) |
|                                                       |   |       |   |   |       |   |   |       |   |   |   |   |
|                                                       |   |       | -      |   |       |   | (1,813 | )          |   |   | (27,929 | ) |
|                                                       |   |       |   |   |       |   |   |       |   |   |   |   |
|      Income tax expense (benefit) |   | $          | 77     |   |       | $      | (5,584 | )          |   | $ | (28,789 | ) |

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|                                                  |   |       |    |   |       |   |   |       |   |
|-------------------------------------------------------|--------|------------|---------|--------|------------|--------|--------|------------|--------|
|                                                  |   | Year Ended |    |
|                                                  |   | January 1, |    |   | January 2, |   |   | January 3, |   |
|                                                  |   | 2011       |    |   | 2010       |   |   | 2009       |   |
| Statutory federal income tax rate                     |   |       | 35.0%   |   |       |   | 35.0%  |       |   |   | 35.0% |   |
| State income taxes, net of federal income tax benefit |   |       | 4.0%    |   |       |   | 4.0%   |       |   |   | 4.0% |   |
| Impairment of non-deductible goodwill                 |   |       | -       |   |       |   | -      |       |   |   | (21.5%) |   |
| Income Tax Allocation                                 |   |       | -       |   |       |   | 12.1%  |       |   |   | - |   |
| Other                                                 |   |       | (0.4%)  |   |       |   | (2.7%) |       |   |   | (0.2%) |   |
| Non-deductible expenses                               |   |       | (0.3%)  |   |       |   | (2.0%) |       |   |   | - |   |
| Manufacturing deduction                               |   |       | -       |   |       |   | -      |       |   |   | - |   |
| State tax credits                                     |   |       | (2.7%)  |   |       |   | 0.3%   |       |   |   | 0.1% |   |
| Valuation allowance on deferred tax assets            |   |       | (36.1%) |   |       |   | (9.5%) |       |   |   | (2.4%) |   |
|                                                  |   |       |    |   |       |   |   |       |   |   |   |   |
|                                                  |   |       | (0.5%)  |   |       |   | 37.2%  |       |   |   | 15.0% |   |

|                                                           |   |              |    |       |   |   |
|----------------------------------------------------------------|--------|-------------------|---------|------------|--------|--------|
|                                                           |   |              |    |       |   |   |
|                                                           |   | January 1,        |    | January 2, |   |
|                                                           |   |    2011 |    |       | 2010   |   |
|                                                           |   | (in thousands)    |    |
| Deferred tax assets:                                           |   |
|   Goodwill                                           |   | $                 | 10,441  |       |   | $      | 12,529 |   |
|   State and federal net operating loss carryforwards |   |              | 5,115   |       |   |   | 2,778 |   |
|   Accrued warranty                                   |   |              | 1,600   |       |   |   | 1,576 |   |
|   Compensation expense                               |   |              | 1,647   |       |   |   | 800 |   |
|   Allowance for doubtful accounts                    |   |              | 685     |       |   |   | 680 |   |
|   Obsolete inventory                                 |   |              | 747     |       |   |   | 543 |   |
|   State tax credits                                  |   |              | -       |       |   |   | 381 |   |
|   AMT tax credits                                    |   |              | 287     |       |   |   | 244 |   |
|   Other accruals                                     |   |              | 1,075   |       |   |   | 1,357 |   |
|   Valuation allowance                                |   |              | (10,968 | )          |   |   | (5,651 | ) |
|                                                           |   |              |    |       |   |   |   |   |
|      Total deferred tax assets        |   | $                 | 10,629  |       |   | $      | 15,237 |   |
|                                                           |   |              |    |       |   |   |   |   |
| Deferred tax liabilities:                                      |   |
|   Other indefinite lived intangible assets           |   | $                 | 17,315  |       |   | $      | 17,315 |   |
|   Amortizable intangible assets                      |   |              | 6,466   |       |   |   | 8,783 |   |
|   Property, plant and equipment                      |   |              | 4,046   |       |   |   | 6,254 |   |
|   Derivative financial instruments                   |   |              | 117     |       |   |   | 200 |   |
|                                                           |   |              |    |       |   |   |   |   |
|      Total deferred tax liabilities   |   | $                 | 27,944  |       |   | $      | 32,552 |   |

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|                                                              |   |           |    |       |   |   |
|-------------------------------------------------------------------|--------|----------------|---------|------------|--------|--------|
|                                                              |   | January 1,     |    | January 2, |   |
|                                                              |   | 2011           |    |       | 2010   |   |
|                                                              |   | (in thousands) |    |
| Current deferred tax (liabilities) assets, net                    |   | $              | (185    | )          |   | $      | 622 |   |
| Noncurrent deferred tax liabilities, net                          |   |           | (17,130 | )          |   |   | (17,937 | ) |
|      Total deferred tax liabilities, net |   | $              | (17,315 | )          |   | $      | (17,315 | ) |

|   |   |
|--------|--------|

|   | 13.   Commitments and Contingencies  |
|--------|----------------------------------------------------------|

| 2011                                |   | $      | 1,038  |   |
|-------------------------------------|--------|--------|--------|--------|
| 2012                                |   |   | 512    |   |
| 2013                                |   |   | 388    |   |
| 2014                                |   |   | 218    |   |
| 2015                                |   |   | 46     |   |
|                                |   |   |   |   |
|      Total |   | $      | 2,202  |   |

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|   |                                              |
|--------|---------------------------------------------------|
|   | 14.   Employee Benefit Plans  |

|   | 15.   Related Parties  |
|--------|--------------------------------------------|

|   |                                                  |
|--------|-------------------------------------------------------|
|   | 16.   Shareholders’ Equity  |

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|   |   |
|--------|--------|

|   | 17.   Employee Stock Based Compensation |
|--------|--------------------------------------------------------|

----

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|   | · | increase the number of shares of common stock available for grant thereunder, from 3,000,000 to 7,000,000,                                                                                                                  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | set forth 1,500,000 as the maximum number of shares that may be made subject to awards in any calendar year to any “covered employee” (within the meaning of Section 162(m) of the Internal Revenue Code), and  |
|   |   |                                                                                                                                                                                                                             |
|   | · | allow the Company to offer to its employees the opportunity to tender certain outstanding equity awards for cancellation in exchange for the issuance of replacement stock options.                                              |

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|                                                         |                                                                                                                                                    |                                                                       |                            |   |          |   |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|---------------------------------|--------|---------------|--------|
|                                                         | Number of Shares                                                                                                                                        | Weighted Average Exercise Price                                            | Weighted Average Remaining Life |
|      Outstanding at January 2, 2010 |            2,335,569                                                                             |  $        4.40                |                            |   |          |   |
| Granted                                                      |            5,502,952                                                                             |  $        2.00                |                            |   |          |   |
| Exercised                                                    |                          - |  $           - |                            |   |          |   |
| Forfeited/Expired                                            |          (1,207,813)                                                                                       |  $      (7.20)                          |                            |   |          |   |
|      Outstanding at January 1, 2011 |            6,630,708                                                                             |  $        1.90                |                            |   |  8.2 Yrs |   |
|                                                         |                                                                                                                                                    |                                                                       |                            |   |          |   |
|      Exercisable at January 1, 2011 |            1,287,506                                                                             |  $        1.64                |                            |   |  4.7 Yrs |   |

| Exercise Price |   | Remaining Contractual Life |      | Outstanding |   |      | Outstanding Intrinsic Value |   |   | Exercisable |   |   | Exercisable Intrinsic Value |      |
|----------------|--------|----------------------------|-----------|-------------|--------|-----------|-----------------------------|--------|--------|-------------|--------|--------|-----------------------------|-----------|
|           |   |                       |      |        |   |      |                        |   |   |        |   |   |                        |      |
| $              | 0.38   |                       | 3.1 Years |        |   | 75,596    |                        |   | $      | 157         |   |   |                        | 75,596    |   |   | $ | 157 |   |
| $              | 1.51   |                       | 3.1 Years |        |   | 790,742   |                        |   |   | 743         |   |   |                        | 790,742   |   |   |   | 743 |   |
| $              | 8.64   |                       | 3.4 Years |        |   | 22,510    |                        |   |   | -           |   |   |                        | 22,510    |   |   |   | - |   |
| $              | 0.92   |                       | 5.1 Years |        |   | 284,711   |                        |   |   | 436         |   |   |                        | 94,906    |   |   |   | 145 |   |
| $              | 2.00   |                       | 9.2 Years |        |   | 4,771,680 |                        |   |   | 2,147       |   |   |                        | -         |   |   |   | - |   |
| $              | 1.98   |                       | 9.2 Years |        |   | 685,469   |                        |   |   | 322         |   |   |                        | 303,752   |   |   |   | 143 |   |
|           |   |                       |      |        |   |      |                        |   |   |        |   |   |                        |      |   |   |   |   |   |
|           |   |                       |      |        |   | 6,630,708 |                        |   | $      | 3,805       |   |   |                        | 1,287,506 |   |   | $ | 1,188 |   |

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|                                                         |   |             |     |   |                             |   |
|--------------------------------------------------------------|--------|------------------|----------|--------|----------------------------------|--------|
|                                                         |   | Number of Shares |     |   | Weighted Average Fair Value |   |
|      Outstanding at January 2, 2010 |   |             | 366,367  |   |                             | $      | 1.75 |   |
| Granted                                                      |   |             | -        |   |                             |   |   |   |
| Vested                                                       |   |             | (16,554  | )      |                             | $      | 8.79 |   |
| Forfeited/Expired                                            |   |             | (334,174 | )      |                             | $      | 1.39 |   |
|      Outstanding at January 1, 2011 |   |             | 15,639   |   |                             | $      | 1.85 |   |

|   |   |
|--------|--------|

|   | 18.   Accumulated Other Comprehensive Loss |
|--------|-----------------------------------------------------------|

|                         |   |     |   |   |      |   |   |      |   |   |   |   |
|------------------------------|--------|----------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------|--------|
|                         |   | Interest |   |   | Aluminum  |   |   |      |   |   |   |   |
|                         |   | Rate     |   |   | Forward   |   |   | Valuation |   |   |   |   |
| (in thousands)               |   | Swap     |   |   | Contracts |   |   | Allowance |   |   | Total  |   |
|                         |   |     |   |   |      |   |   |      |   |   |   |   |
| Balance at December 29, 2007 |   | $        | (46    | )      |      | $      | (376   | )         |   | $      | -      |   |   | $ | (422 | ) |
| Changes in fair value        |   |     | 74     |   |      |   | (3,938 | )         |   |   | -      |   |   |   | (3,864 | ) |
| Reclassification to earnings |   |     | -      |   |      |   | 320    |      |   |   | -      |   |   |   | 320 |   |
| Tax effect                   |   |     | (28    | )      |      |   | 1,410  |      |   |   | (1,382 | )      |   |   | - |   |
| Balance at January 3, 2009   |   |     | -      |   |      |   | (2,584 | )         |   |   | (1,382 | )      |   |   | (3,966 | ) |
| Changes in fair value        |   |     | -      |   |      |   | 1,373  |      |   |   | -      |   |   |   | 1,373 |   |
| Reclassification to earnings |   |     | -      |   |      |   | 3,375  |      |   |   | -      |   |   |   | 3,375 |   |
| Tax effect                   |   |     | -      |   |      |   | (1,852 | )         |   |   | 1,852  |   |   |   | - |   |
| Income tax allocation        |   |     | -      |   |      |   | (1,813 | )         |   |   | -      |   |   |   | (1,813 | ) |
| Balance at January 2, 2010   |   |     | -      |   |      |   | (1,501 | )         |   |   | 470    |   |   |   | (1,031 | ) |
| Changes in fair value        |   |     | -      |   |      |   | 38     |      |   |   | -      |   |   |   | 38 |   |
| Reclassification to earnings |   |     | -      |   |      |   | (250   | )         |   |   | -      |   |   |   | (250 | ) |
| Tax effect                   |   |     | -      |   |      |   | 82     |      |   |   | (82    | )      |   |   | - |   |
| Balance at January 1, 2011   |   | $        | -      |   |      | $      | (1,631 | )         |   | $      | 388    |   |   | $ | (1,243 | ) |

|   | 19.   Sales by Product Group |
|--------|---------------------------------------------|

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|                                                         |   |       |   |   |       |   |   |       |   |
|--------------------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                                         |   | Year Ended |   |
|                                                         |   | January 1, |   |   | January 2, |   |   | January 3, |   |
|                                                         |   | 2011       |   |   | 2010       |   |   | 2009       |   |
| Product category:                                            |   |       |   |   |       |   |   |       |   |
|      WinGuard Windows and Doors     |   | $          | 109.3  |   |       | $      | 108.2  |       |   | $ | 151.8 |   |
|      Other Window and Door Products |   |       | 66.4   |   |       |   | 57.8   |       |   |   | 66.8 |   |
|                                                         |   |       |   |   |       |   |   |       |   |   |   |   |
|      Total net sales                |   | $          | 175.7  |   |       | $      | 166.0  |       |   | $ | 218.6 |   |

|   | 20.   Unaudited Quarterly Financial Data  |
|--------|---------------------------------------------------------------|

|                                                          |   |               |                                                                                                                                           |           |   |          |   |           |   |   |   |   |
|---------------------------------------------------------------|--------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------|---------------|--------|----------------|--------|--------|--------|--------|
|                                                          |   | 2010               |                                                                                                                                           |
|                                                          |   | First Quarter      |                                                                                                                                           | Second Quarter |   | Third Quarter |   | Fourth Quarter |   |
| Net sales                                                     |   | $                  | 40,515                                                                                                                                         |           |   | $             | 49,006 |           |   | $      | 47,179 |   |   | $ | 39,041 |   |
| Gross profit                                                  |   |               | 11,322                                                                                                                                         |           |   |          | 15,246 |           |   |   | 14,585 |   |   |   | 9,185 |   |
| Net (loss) income                                             |   |               | (2,060                                                                                                                                         | )              |   |          | 1      |           |   |   | (207   | )      |   |   | (12,229 | ) |
| Net (loss) income per share – basic                     |   | $                  | (0.05                                                                                                                                          | )              |   | $             | 0.00   |           |   | $      | (0.00  | )      |   | $ | (0.23 | ) |
| Net (loss) income per share – diluted                   |   | $                  | (0.05                                                                                                                                          | )              |   | $             | 0.00   |           |   | $      | (0.00  | )      |   | $ | (0.23 | ) |
| Items included in the determination of net income (loss)      |   |               |                                                                                                                                           |           |   |          |   |           |   |   |   |   |   |   |   |   |
|   that may affect comparability, before tax effect: |   |               |                                                                                                                                           |           |   |          |   |           |   |   |   |   |   |   |   |   |
| Impairment charge                                             |   | $                  | -                                                                                                                                              |           |   | $             | -      |           |   | $      | -      |   |   | $ | (5,561 | ) |
| Consolidation charge                                     |   |               | -                                                                                                                                              |           |   |          | -      |           |   |   | -      |   |   |   | (2,053 | ) |
|                                                          |   |               |                                                                                                                                           |           |   |          |   |           |   |   |   |   |   |   |   |   |
|                                                          |   |               |                        2009 |           |   |
|                                                          |   | First Quarter |                                                                                                                                           | SecondQuarter  |   | Third Quarter |   | Fourth Quarter |   |
| Net sales                                                     |   | $                  | 41,514                                                                                                                                         |           |   | $             | 46,867 |           |   | $      | 41,615 |   |   | $ | 36,004 |   |
| Gross profit                                                  |   |               | 9,895                                                                                                                                          |           |   |          | 14,620 |           |   |   | 10,863 |   |   |   | 9,000 |   |
| Net (loss) income                                             |   |               | (6,700                                                                                                                                         | )              |   |          | 342    |           |   |   | (3,360 | )      |   |   | 301 |   |
| Net (loss) income per share – basic                     |   | $                  | (0.19                                                                                                                                          | )              |   | $             | 0.01   |           |   | $      | (0.09  | )      |   | $ | 0.01 |   |
| Net (loss) income per share – diluted                   |   | $                  | (0.19                                                                                                                                          | )              |   | $             | 0.01   |           |   | $      | (0.09  | )      |   | $ | 0.01 |   |
| Items included in the determination of net income (loss)      |   |               |                                                                                                                                           |           |   |          |   |           |   |   |   |   |   |   |   |   |
|   that may affect comparability, before tax effect: |   |               |                                                                                                                                           |           |   |          |   |           |   |   |   |   |   |   |   |   |
| Impairment charge                                             |   | $                  | -                                                                                                                                              |           |   | $             | -      |           |   | $      | -      |   |   | $ | (742 | ) |
| Restructuring charges                                         |   |               | (3,002                                                                                                                                         | )              |   |          | -      |           |   |   | (903   | )      |   |   | (1,490 | ) |

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|                                |   | Twelve Months Ended |   |
|-------------------------------------|--------|---------------------|--------|
|                                |   | January 1,          |   |   | January 2, |   |   | January 3, |   |
|                                |   | 2011                |   |   | 2010 |   |   | 2009 |   |
|                                |   |                |   |   |   |   |   |   |   |
| Net sales                           |   | $                   | -      |   |   | $ | 1,449 |   |   | $ | 1,531 |   |
| Cost of sales                       |   |                | -      |   |   |   | (1,093 | ) |   |   | (1,464 | ) |
| Selling, general and administrative |   |                | -      |   |   |   | (215 | ) |   |   | (130 | ) |

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|                                        |                                                                                 |
|---------------------------------------------|--------------------------------------------------------------------------------------|
|    Item 9.    | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |

|                                              |                    |
|---------------------------------------------------|-------------------------|
|     Item 9A.   | CONTROLS AND PROCEDURES |

| a.   | Management's annual report on internal control over financial reporting. |
|----------------|--------------------------------------------------------------------------|

| b.   | Attestation report of the registered public accounting firm. |
|----------------|--------------------------------------------------------------|

| c.   | Changes in internal control over financial reporting |
|----------------|------------------------------------------------------|

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|                         |                                 |
|------------------------------|--------------------------------------|
|                         |  /s/ ERNST & YOUNG LLP |
| Certified Public Accountants |                            |

----

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 Item 9B. 

|    Item 10.    | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------------------------------------------|--------------------------------------------------------|

|                |   |   |   |     |
|---------------------|--------|--------|--------|----------|
| Name                |   | Age    |   | Position |
| Rodney Hershberger  |   |   | 54     |     | President, Chief Executive Officer, and Director |
| Jeffrey T. Jackson  |   |   | 45     |     | Executive Vice President and Chief Financial Officer |
| Mario Ferrucci III  |   |   | 47     |     | Vice President and General Counsel |
| David McCutcheon    |   |   | 45     |     | Vice President - Glass Operations |
| Deborah L. LaPinska |   |   | 49     |     | Vice President - Sales and Marketing |
| Monte Burns         |   |   | 51     |     | Vice President - NC Operations |
|                |   |   |   |     |   |

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Table of Contents

|   |          |                                                                                                                                                                                                                     |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | Any amendment to a provision of our Code of Business Conduct and Ethics or our Supplemental Code of Ethics that applies to our chief executive officer, our chief financial officer; or                             |
|   |          |
|   | •  | The grant of any waiver, including an implicit waiver, from a provision of one of these policies to one of these officers that relates to one or more of the items set forth in Item 406(b) of Regulation S-K. |

|   |   |
|--------|--------|

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Table of Contents

|     Item 11.    | EXECUTIVE COMPENSATION |
|----------------------------------------------------|------------------------|

|                                         |                                                                                           |
|----------------------------------------------|------------------------------------------------------------------------------------------------|
|    Item 12.    | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |

|    Item 13.   | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|---------------------------------------------|---------------------------------------------------------------------------|

|                                        |                                   |
|---------------------------------------------|----------------------------------------|
|    Item 14.   | PRINCIPAL ACCOUNTING FEES AND SERVICES |

|                                               |                                    |
|----------------------------------------------------|-----------------------------------------|
|     Item 15.    | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |

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Table of Contents

| 3.1        | Amended and Restated Certificate of Incorporation of PGT, Inc. (incorporated herein by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 18, 2010, Registration No. 000-52059)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2        | Amended and Restated By-Laws of PGT, Inc. (incorporated herein by reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 18, 2010, Registration No. 000-52059)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.1        | Form of Specimen Certificate (incorporated herein by reference to Exhibit 4.1 to Amendment No. 2 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on May 26, 2006, Registration No. 333-132365)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.2        | Amended and Restated Security Holders’ Agreement, by and among PGT, Inc., JLL Partners Fund IV, L.P., and the stockholders named therein, dated as of June 27, 2006 (incorporated herein by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 11, 2006, Registration No. 000-52059)                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.3        | PGT Savings Plan (incorporated herein by reference to Exhibit 4.5 to the Company’s Form S-8 Registration Statement, filed with the Securities and Exchange Commission on October 15, 2007, Registration No. 000-52059)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1       | Second Amended and Restated Credit Agreement, including the corresponding schedules and exhibits thereto, dated as of February 14, 2006 among PGT Industries, Inc., as Borrower, JLL Window Holdings, Inc. and the other Guarantors party thereto, as Guarantors, the lenders party thereto, UBS Securities LLC, as Arranger, Bookmanager, Co-Documentation Agent and Syndication Agent, UBS AG, Stamford Branch, as Issuing Bank, Administrative Agent and Collateral Agent, UBS Loan Finance LLC, as Swingline Lender and General Electric Capital Corporation, as Co-Documentation Agent (incorporated herein by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on May 17, 2010, Registration No. 333-132365) |
| 10.2       | Amendment No. 2 to Second Amended and Restated Credit Agreement dated as of April 30, 2008 among PGT Industries, Inc., UBS AG, Stamford Branch, as administrative agent and the Lenders, as defined therein, amending the Second Amended and Restated Credit Agreement dated as of February 14, 2006 (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K dated May 1, 2008 filed with the Securities and Exchange Commission on May I, 2008, Registration No. 000-52059)                                                                                                                                                                                                                                                                                           |
| 10.3       | Amended and Restated Pledge and Security Agreement dated as of February 14, 2006, by PGT Industries, Inc., JLL Window Holdings, Inc. and the other Guarantors party thereto in favor of UBS AG, Stamford Branch, as First Lien Collateral Agent (incorporated herein by reference to Exhibit 10.3 to Amendment No. 1 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on April 21, 2006, Registration No. 333-132365)                                                                                                                                                                                                                                                                                                                    |
|  10.5 | PGT, Inc. 2004 Stock Incentive Plan, as amended (incorporated herein by reference to Exhibit 10.5 to Amendment No. 1 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on April 21, 2006, Registration No. 333-132365)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|  10.6 | Form of PGT, Inc. 2004 Stock Incentive Plan Stock Option Agreement (incorporated herein by reference to Exhibit 10.6 to Amendment No. 1 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on April 21, 2006, Registration No. 333-132365)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|  10.7 | PGT, Inc. Amended and Restated 2006 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.7 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 18, 2010, Registration No. 000-52059)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|  10.8 | Form of PGT, Inc. 2006 Equity Incentive Plan Non-qualified Stock Option Agreement (incorporated herein by reference to Exhibit 10.8 to Amendment No. 3 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on June 8, 2006, Registration No. 333-132365)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|  10.9 | Form of Employment Agreement, dated February 20, 2009, between PGT Industries, Inc. and, individually, Rodney Hershberger, Jeffery T. Jackson, C. Douglas Cross, Mario Ferrucci III, Deborah L. LaPinska and David B. McCutcheon (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K dated February 20, 2009, filed with the Securities and Exchange Commission on February 26, 2009, Registration No. 000-52059)                                                                                                                                                                                                                                                                                                                                                       |

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Table of Contents

|  10.10                        | Form of Director Indemnification Agreement (incorporated herein by reference to Exhibit 10.17 to Amendment No. 3 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on June 8, 2006, Registration No. 333-132365)                                                                                                                                                                                                                              |
|------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  10.11                        | Form of PGT, Inc. Rollover Stock Option Agreement (incorporated herein by reference to Exhibit 10.18 to Amendment No. 1 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on April 21, 2006, Registration No. 333-132365)                                                                                                                                                                                                                     |
|  10.12                        | Market Alliance Agreement between PGT Industries, Inc. and E.I. du Pont de Nemours and Company, dated February 27, 2009, with portions omitted pursuant to a request for confidential treatment (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K dated February 27, 2009, filed with the Securities and Exchange Commission on March 5, 2009, Registration No. 000-52059)                                                                                                |
|  10.13                        | Form of PGT, Inc. 2006 Management Incentive Plan (incorporated herein by reference to Exhibit 10.23 to Amendment No. 3 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on June 8, 2006, Registration No. 333-132365)                                                                                                                                                                                                                        |
|  10.14                        | Form of PGT, Inc. 2006 Equity Incentive Plan Restricted Stock Award Agreement (incorporated herein by reference to Exhibit 10.24 to Amendment No. 3 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on June 8, 2006, Registration No. 333-132365)                                                                                                                                                                                           |
|  10.15                        | Form of PGT, Inc. 2006 Equity Incentive Plan Restricted Stock Unit Award Agreement (incorporated herein by reference to Exhibit 10.25 to Amendment No. 3 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on June 8, 2006, Registration No. 333-132365)                                                                                                                                                                                      |
|  10.16                        | Form of PGT, Inc. 2006 Equity Incentive Plan Incentive Stock Option Agreement (incorporated herein by reference to Exhibit 10.26 to Amendment No. 3 to the Registration Statement of the Company on Form S-1, filed with the Securities and Exchange Commission on June 8, 2006, Registration No. 333-132365                                                                                                                                                                                            |
|  10.17                        | Form of PGT, Inc. 2006 Equity Incentive Plan Replacement Non-Qualified Stock Option Agreement (incorporated herein by reference to Exhibit 10.17 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 18, 2010, Registration No. 000-52059)                                                                                                                                                                                                     |
|  10.18   23.1* | Amendment No. 3 to Second Amended and Restated Credit Agreement, dated as of December 22, 2009, among PGT Industries, Inc., UBS AG, Stamford Branch, as administrative agent, and the Lenders party thereto (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K dated December 22, 2009, filed with the Securities and Exchange Commission on December 23, 2009, Registration No. 000-52059)Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm |
|  31.1*                        | Certification of chief executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                      |
|  31.2*                        | Certification of chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                      |
|  32.1**                       | Certification of chief executive officer and chief financial officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                           |

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Table of Contents

|                 | PGT, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 | (Registrant)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Date: March 21, 2011 | /s/ RODNEY HERSHBERGER                                                                                      |
|                 | Rodney Hershberger                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 | President and Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Date: March 21, 2011 | /s/ JEFFERY T. JACKSON                                                                                      |
|                 | Jeffery T. Jackson                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                 | Executive Vice President and Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

| Signature                                                              |   | Title                                                                                            |   | Date                 |
|------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|----------------------|
|  /s/   RODNEY HERSHBERGER  Rodney Hershberger |   |  President and Chief Executive Officer (Principal Executive Officer and Director)           |   |  March 21, 2011 |
|                                                                   |   |                                                                                             |   |                 |
| /s/   JEFFREY T. JACKSON  Jeffrey T. Jackson       |   | Executive Vice President and Chief Financial Officer(Principal Financial and Accounting Officer) |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   PAUL S. LEVY  Paul S. Levy                   |   | Chairman and Director                                                                            |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   ALEXANDER R. CASTALDI  Alexander R. Castaldi |   | Director                                                                                         |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   RICHARD D. FEINTUCH  Richard D. Feintuch     |   | Director                                                                                         |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   RAMSEY A. FRANK  Ramsey A. Frank             |   | Director                                                                                         |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   M. JOSEPH MCHUGH  M. Joseph McHugh           |   | Director                                                                                         |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   FLOYD F. SHERMAN  Floyd F. Sherman           |   | Director                                                                                         |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   RANDY L. WHITE  Randy L. White               |   | Director                                                                                         |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   BRETT N. MILGRIM  Brett N. Milgrim           |   | Director                                                                                         |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   WILLIAM J. MORGAN  William J. Morgan         |   | Director                                                                                         |   | March 21, 2011       |
|                                                                   |   |                                                                                             |   |                 |
| /s/   DANIEL AGROSKIN  Daniel Agroskin             |   | Director                                                                                         |   | March 21, 2011       |

----

| APPENDIX                                                                           |                                           |
|------------------------------------------------------------------------------------|------------------------------------------------|
|                                                                               |                                           |   |   |   |   |   |   |   |   |   |
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THEIR GAAP EQUIVALENTS            |                                           |
| (unaudited - in thousands, except per share amounts)                               |                                           |
|                                                                               |                                           |   |   |   |   |   |   |   |   |   |
|                                                                               |                                           |   | Year Ended |   |
|                                                                               |                                           |   | January 1, |   |   | January 2, |   |   | January 3, |   |
|                                                                               |                                           |   | 2011 |   |   | 2010 |   |   | 2009 |   |
| Reconciliation to Adjusted Net Loss and Adjusted Net Loss per pro forma share (1): |                                           |   |   |   |   |   |   |   |   |
|                                                                               |                                           |   |   |   |   |   |   |   |
| Net loss                                                                           |                                           | $ | (14,495 | ) |   | $ | (9,417 | ) |   | $ | (163,032 | ) |
| Reconciling items:                                                                 |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill and intangible impairment charges (2)                                     |                                           |   | - |   |   |   | - |   |   |   | 187,748 |   |
| Asset impairment charges (3)                                                       |                                           |   | 5,561 |   |   |   | 742 |   |   |   | - |   |
| Consolidation/Restructuring charges (4)                                            |                                           |   | 2,053 |   |   |   | 5,395 |   |   |   | 2,131 |   |
| Tax effect of reconciling items                                                    |                                           |   | - |   |   |   | - |   |   |   | (28,313 | ) |
| Adjusted net loss                                                                  |                                           | $ | (6,881 | ) |   | $ | (3,280 | ) |   | $ | (1,466 | ) |
|                                                                               |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                               |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Diluted shares (5)                                                                 |                                           |   | 50,174 |   |   |   | 36,241 |   |   |   | 32,104 |   |
| Pro forma diluted shares                                                           |                                           |   | 50,174 |   |   |   | 36,241 |   |   |   | 32,104 |   |
|                                                                               |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted net loss per pro forma share - diluted                                    |                                           | $ | (0.14 | ) |   | $ | (0.09 | ) |   | $ | (0.05 | ) |
|                                                                               |                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Reconciliation to EBITDA and Adjusted EBITDA:                                      |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                           |                                           | $ | (14,495 | ) |   | $ | (9,417 | ) |   | $ | (163,032 | ) |
| Reconciling items:                                                                 |                                           |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization expense                                              |                                           |   | 15,208 |   |   |   | 16,166 |   |   |   | 17,088 |   |
| Interest expense                                                                   |                                           |   | 5,123 |   |   |   | 6,698 |   |   |   | 9,283 |   |
| Income tax expense (benefit)                                                       |                                           |   | 77 |   |   |   | (5,584 | ) |   |   | (28,789 | ) |
| EBITDA                                                                             |                                           |   | 5,913 |   |   |   | 7,863 |   |   |   | (165,450 | ) |
| Add:                                                                               | Goodwill and intangible impairment charges (2) |   |   |   |   |   |   |   |   |   |   | 187,748 |   |
|                                                                               | Asset impairment charges (3)                   |   |   | 5,561 |   |   |   | 742 |   |   |   | - |   |
|                                                                               | Consolidation/Restructuring charges (4)        |   |   | 2,053 |   |   |   | 5,395 |   |   |   | 2,131 |   |
|                                                                               | Adjusted EBITDA                                |   | $ | 13,527 |   |   | $ | 14,000 |   |   | $ | 24,429 |   |
|                                                                               | Adjusted EBITDA as percentage of net sales     |   |   | 7.7 | % |   |   | 8.4 | % |   |   | 11.2 | % |
|                                                                               |                                           |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (1)   | This Appendix above includes financial measures and terms not calculated in accordance with generally accepted accounting principles in the United States (GAAP).  We believe that presentation of non-GAAP measures such as adjusted net loss, adjusted net loss per share, EBITDA and adjusted EBITDA provides investors and analysts with an alternative method for assessing our operating results in a manner that enables investors and analysts to more thoroughly evaluate our current performance compared to past performance.  We also believe these non-GAAP measures provide investors with a better baseline for assessing our future earnings potential.  The non-GAAP measures included in this appendix are provided to give investors access to types of measures that we use in analyzing our results. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The Company completed its impairment tests in 2008, which resulted in $169.9 million non-cash charge for the impairment of goodwill and an $18.1 million non-cash impairment charge for our trademarks. The Company’s goodwill as of January 3, 2009 had zero carrying value for financial reporting purposes. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Represents the write-downs of the value of certain fixed assets of the Company. |
|-----------------|---------------------------------------------------------------------------------|

| (4)   | Represents charges related to consolidation actions in 2010 and restructuring actions in 2009 and 2008. These charges relate primarily to employee separation costs. Of the $2.1 million consolidation charge in 2010, $0.9 million is included in costs of goods sold and $1.2 million is included in selling, general and administrative expenses. Of the $5.4 million restructuring charge in 2009, $3.1 million is included in cost of goods sold and $2.3 million is included in selling, general and administrative expenses. Of the $2.1 million restructuring charge in 2008, $1.1 million was included in cost of goods sold and $1.0 million was included in selling, general and administrative expenses. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   |  Weighted average common shares outstanding for all periods presented have been restated to give effect to the bonus element of the 2010 rights offering.  Due to the net losses in 2010, 2009 and 2008, the effect of equity compensation plans for these periods is anti-dilutive. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|