2005 Price Increase Announcement
December 4, 2004

2004 has been a very volatile year. The combination of economic and political events has created one of the most inflationary pricing environments for the materials that are used to produce HVAC products. We have received notification from all of our vendors regarding some of the largest price increases we have ever encountered. In the past year steel prices have increased 105%, copper 58%, aluminum 23%, silver 37%, nickel 29%, and refrigerant 4%. In addition freight costs have increased approximately 8% due to new government regulations and escalating fuel prices.

We are announcing a 5-9% price increase on all York residential products, York commercial products, York OEM replacement parts, all Non-York HVAC equipment, and supplies effective February 1st, 2005. Some specific products will have even greater price increases, for example flex duct will increase 10%. We will soon release more specific details regarding the specific percentage increases. Due to the size of the price increases this year there will be very little ability to "price protect" projects shipping after the February 1st date. We have been told by numerous manufacturers that there will be absolutely no exceptions. Please contact your territory manager if you have any specific concerns. We will be doing our best to identify any projects that will be effected by this increase so that we can proactively seek a solution.

Your Territory Manager or local branch will be distributing new equipment and supplies price sheets in late December, early January.

We thank you in advance for your continued support! We will present more specific details as they become available.

Best Regards & Good Selling,
Ken Baker
President
Virginia Air Distributors

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