Dear Customer:

We are painfully aware of the effects the economic recovery has had in recent months on the cost of energy, transportation, steel and copper, Copper in particular  has doubled in price since September from $.70/lb.to  almost $1.40/lb and is a major cost factor for our products.

We have been able to offset a portion of these increases but have reached a point where we are no longer able to support our current price structure. Effective with invoicing dated April 16th, we will implement a monthly surcharge on all of our products. This surcharge will be adjusted monthly based on market conditions. We  understand that surcharges are difficult for our customers to manage; therefore, we will institute a flat charge by product line, calculated on pieces shipped rather than a percentage of total sales. These surcharges are as follows:

Stators              $.40 per piece

Rotors              $.35 per piece

Armatures        $.60 per piece  

We believe this surcharge methodology will be easier to manage. Please note these surcharges cover only about half of our cost increases to date, We are not asking our customers to assume all of the increase in cost.

Please bear with us during this difficult period. We appreciate your business and your continued support.

Sincerely,

Stephen Fallen

President