The Haartz Corporation to Increase Prices to Offset Rising Costs in Supply Chain

ACTON, Mass., Oct. 19, 2005 -- Due to worldwide and industry factors, The Haartz Corporation announced a new price structure for products it manufactures in Acton, Mass. Customers are being contacted with details.

The new pricing includes an energy surcharge of 2 percent on all products. For products based on PVC and TPO (thermoplastic olefin), there also will be a raw material increase (estimated at 6 to 12 percent) depending upon product construction.

"The volatility of worldwide energy markets has a direct effect on raw materials, the total cost of numerous chemical intermediates and the cost of production," said Haartz President John L. Fox. "A tight global supply and demand balance has been pushed to extremes by the disastrous Hurricanes Katrina and Rita. As a result, significant price increases and surcharges throughout the supply chain have been implemented without warning. We must also pass along these increases to our customers."

Fox said that Haartz has taken aggressive action to minimize the impact of these cost increases through ambitious productivity and continuous improvement programs. These cost-control initiatives have resulted in savings for the company and its business partners; however, they alone cannot offset the present run up in costs.

"If and when the market situation changes, we will be back in touch with our customers to discuss possible adjustments to these price actions," Fox said.

Haartz is a privately held company based in Acton, Mass. The company also has production facilities at its European operations in Mannheim, Germany, and a sales office in Bloomfield Hills, Mich. In business since 1907, the company is a leading producer of coated fabrics for convertible topping, and foils and composites for automotive interiors. For more information, visit http://www.haartz.com/ .