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ENVIPCO's regional offices include assembly plants where the reverse vending machines are configured and assembled. Customer service and technical personnel are based in these offices to maintain the machines and provide quality service.

The CF 1500 consists of approximately 15 major "subassemblies." The subassemblies are currently built at ENVIPCO's Naugatuck, Connecticut research, development, manufacturing and worldwide distribution facility.

The parts for the subassemblies are purchased from over 50 vendors, with the majority of the components purchased from about 10 suppliers. All of the machine components can be purchased from a variety of suppliers, and ENVIPCO would not experience any significant problems if any one of its suppliers were unable to meet contract requirements. The Company performs substantial incoming quality assurance examinations of components and final assembly and testing of each completed machine.

Vertical Integration

ENVIPCO has recently increased the amount of manufacturing that is done "in-house," rather than purchasing the subassemblies from outside suppliers. This vertical integration gives us more control over the quality and supply of the completed subassemblies.