Rea Energy and Petro Chemical Surcharge

Effective with shipments of January 1, 2009 through March 31, 2009, Rea will be temporarily suspending the implementation of the Rea Energy and Petro-Chemical Surcharge Index.

As you know, this surcharge was initiated to address material cost increases in the petrochemical commodities markets that were beyond our control. We knew you had been struggling with the same hyper-inflationary cost pressures as reflected in transportation, natural gas, oil, and electricity.

As we stated in our initial correspondence, the surcharge would remain in effect until the petrochemical market reestablished equilibrium. The index suggests at this point that has been accomplished, but since commodities have been moving between two extremes, it is difficult to be fully confident it will be sustained. Additional information with respect to the index can be obtained through your Rea Magnet Wire Account Representative. We appreciate your loyalty and your understanding during this challenging environment.