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PRICE ADJUSTMENT

Considering the uncertain and volatile nature of the cost of these materials we have no choice but to issue an increase in the prices for the products we supply to you.

In the next few weeks our representatives will supply new price sheets effective in March, 2011. Purchase orders received up to March 31, 2011 will be honoured at the current price levels but they must be for immediate shipment. Outstanding orders currently in the approval stage and not released for shipment prior to April 1, 2011 must be renegotiated at the new price levels.

However unfortunate this price increase is, it is driven by factors beyond our control. The price volatility of these raw materials will affect the entire electrical transformer industry.

Once again, we ask for your understanding and remain committed to serve you responsibly and reliably with leading technology power magnetic products to meet your power distribution needs.

Please do not hesitate to contact us with your comments or if you require further information.