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Impact of Neon Gas Price Increases on Gas Discharge Tube (GDT) Devices

Dear Customer,

As you may be aware, developments in the Ukraine are negatively impacting the world supply of Neon Gas. As a result, the price of Neon Gas has increased approximately sixteen times over normal market pricing in 2014.

GDT devices of less than 150V DC Breakdown (DCBD) require significant amounts of Neon Gas in their design to meet the lower DCBD voltage requirements. As a result, the Neon Gas price increases cause a dramatic increase in the cost of these low voltage GDT devices.

Currently, Bourns has secured sufficient Neon Gas at the lower market price to maintain its current low voltage GDT pricing through the end of 2015. In addition, Bourns is working on alternative designs for low voltage GDTs that would reduce the use of Neon Gas. Our goal is to offer a design that maintains or improves the current performance specifications. If we find this goal is not attainable, we may offer a replacement product with modified specifications. If we continue to offer current Neon based designs and the cost of Neon remains at or increases from current market levels, then Bourns will notify customers of any required price increase beginning in 2016.

Bourns' account management or authorized distributors will communicate with you regarding changes in product or pricing.

Sincerely,

Kurt A. Wattelet
Product Line Manager – Gas Discharge Tube Products

About Bourns

Bourns, Inc., is a leading manufacturer and supplier of position and speed sensors, circuit protection solutions, magnetic components, microelectronic modules, panel controls and resistive products. Headquartered in Riverside, California, USA, Bourns serves a broad range of markets, including automotive, industrial, consumer, communications, non-critical life support medical (low/medium risk)^†, audio and various other market segments. Additional company and product information is available at www.bourns.com.

Bourns® and the Bourns logo are registered trademarks of Bourns, Inc. and may be used only with the permission of Bourns and proper acknowledgement. Other listed names and brands are trademarks or registered trademarks of their respective owners.

^† Bourns® products have not been designed for and are not intended for use in "lifesaving," "life-critical" or "life-sustaining" applications nor any other applications where failure or malfunction of the Bourns® product may result in personal injury or death. See Legal Disclaimer Notice www.bourns.com/docs/legal/disclaimer.pdf

Agency Contact:
Annette Keller
Keller Communication
annettekeller1984@gmail.com

Company Contact:
David Scofield
Bourns, Inc.
(951) 781-5054
david.scofield@bourns.com