From the 2000 Annual Report

Dear Shareholders, Customers, and Employees:

I am pleased to report to shareholders that Finning International significantly improved its performance in 1999 compared with the previous year. Through the Company's focus on asset utilization and cost reduction, Finning generated net income (after non-recurring charges) of $0.75 per share in 1999 compared with $0.23 per share in 1998.

Strategically, we are in the process of re-designing the Company, shifting it from being a selling business that provides product support to a customer support business that sells. We are also targeting areas where we can improve operating efficiency and strive for "best in class". Based on this process, we have set goals for the Company in terms of asset management, increased productivity and future growth.

At Finning, we are well prepared for the unfolding opportunities of the new business world and management is keenly aware of its responsibility to deliver growth in shareholder value.

Our annual meeting of shareholders this year will be held at the Hotel Vancouver in Vancouver, British Columbia, Wednesday, April 26, 2000 at 11:00 a.m.

Our annual report, which includes the consolidated financial statements, the notice of meeting, the management proxy circular and form of proxy, are enclosed.

Sincerely,

FINNING INTERNATIONAL. INC.

(signed)

James F. Shepard
Chairman and Chief Executive Officer