BMC  Buckbee-Mears St. Paul

May 4, 2001

Mr. Henry Zaidan
President
GMT Corporation
245 E. Sixth Street
St. Paul, MN 55101-1918

Dear Henry:

I would like to update GMT on the status of our facilities plan and introduce our formal notice for another facility giveback in 2001.

Prior Notification Updates:
Fire barn

--	Per your request, we will giveback - 7,000 sq. ft. as described in our October 6, 2000 letter.  Buckbee-Mears. St Paul will retain first floor rooms F101, F102, F103, F105 and F107 for out shipping/receiving operations.
--	We expect this project to be completed July 2001.
--	GMT funds any costs associated with revamping utilities and modifying the facilities.

5^thFloor Park Square

--	In our letter dated 14-Jun-00 Buckbee-Mears, St. Paul requested to giveback -7,000 sq. ft. of Park Square 5th floor- space which included room P502, P508 and P509.  Assuming the giveback ofthe fire barn is completed, we need to retain room P502 for material storage space.
--	We expect this project to be completed by I-July-0l.
--	GMT funds any costs associated with revamping utilities.

New Business:
6^th Floor Park Square

-- Due to an unusuallylow sa1es forecast, we have reduced our staffing levels at BMSP.  Therefore, we are providing notice that we will giveback all office space on the 6^th floor Park Square Building.  Per our contract, we will vacate the space in 5 months from the date of this letter.  This area covers approximatc1y 2,700 sq. ft.

Please contact me at your earliest convenience to discuss.

Sincerely,

/s/Dennis Malacek 

Dennis Ma1acek
Director of Manufacturing