| International Paper has announced that it will upgrade its entire line of uncoated 88 bright paper grades to 92 bright effective this fall. Exact timing and details are not yet finalized. IP will cease production of 88 bright grades and substitute 92 bright at no additional up-charge once the program is implemented. The first products to transition will be cut-sheet grades supporting the desktop digital printing market followed by segments such as wide format. The move is consistent with IP’s strategy to reduce product variation and leverage their position in the commodity paper business. |
| Other major mills have signaled they will follow IP’s lead and match the move to 92 bright from 88 bright. Their exact plans and timelines are still being developed. It is highly probable Dietzgen will upgrade all of our 88 bright Laser and CAD products to 92 bright beginning mid to late October 2005. |
| Dietzgen has offered both 88 bright and 92 bright laser and inkjet bonds for some time. Customer acceptance has been positive towards the higher brightness but not equally so towards the price premium. Once the market price premium is removed we believe customer acceptance will be universal. |
| Unlike many of our competitors, Dietzgen/Nashua deals directly with the major paper mills. We have a fifty plus year relationship with IP. No supplier is better positioned to keep you informed and represent your needs to the Mills. We are now in daily contact with the Mills on this subject to get our questions answered and in order to keep you promptly informed of significant developments. We will also thoroughly evaluate and field-test the new offerings to ensure compliance with our quality standards. |
