Central Moloney
Price Increase Announcement November 1, 2005

Central Moloney, Inc. has announced a price increase of 15% to 18% for all new quotations covering its complete line of oil filled distribution transformers, including single-phase pole type, single-phase pad mounted, single-phase submersible, three-phase pad mounted, three-phase network, and three-phase submersible transformers.

The increase is effective for all quotations dated on or after November 1, 2005.  All existing blanket contracts will be subject to a 10% to 12% price increase.  Existing quotations will be honored until their expiration date for the specific quantities and lead-times quoted.

Central Moloney, Inc. is implementing this price increase due to continued increases in raw material, transportation and natural gas costs.  We are experiencing significant increases in electrical steel from our two domestic suppliers.  We have also received increases in mild steel base price as well as seeing surcharges increase.  Copper is at an all time high and we continue to see oil prices reach record levels.

We will continue to seek ways to control internal costs and implement cost reductions whenever possible to help reduce the impact of inflating material costs.

We appreciate your business and understanding in these challenging times.  It is our commitment to our valued customers to continue to offer competitive pricing, quality and service.
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