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March 2, 2006

RE: CAC® Acquisition Update

Dear Valued CAC® Customer,

We are working diligently on finalizing the acquisition of the CAC® Division of Gould Electronics and I would like to provide an update on some key elements of our plan going forward. 

We are planning to move the CAC® operation to our new facility. We have been working closely with Gould to build CAC®, DUOFOIL and B10 finished goods inventory which will be stored in Gould’s Chandler warehouse and our own so we expect no interruptions in supply for these products during the relocation.

Please note: Due to environmental issues with the relocation of the DUOFOIL line, please verify that your DUOFOIL forecasts are in place though the end of the year. Most importantly, we will be requiring a PO for all non-standard DUOFOIL part numbers until the line has been relocated.

Finally, we are in negotiations with multiple copper foil suppliers, including Gould, and all are anxious and willing to support our significant volume requirements. We expect no interruptions in raw materials supply.

We thank you for your continued support and are confident that we will be able to make a transparent transition of ownership as we have accomplished in the past.

If you have any questions, please call me or your Account Manager.

Patrick Redfern
949.587.3245 direct
949.584.3245 cell


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