ACI Not Endorsing NAGS Rebalancing

Charles Witherington, VitroAmerica's AGR vice president - distribution south, formally announced to the company's customers that the subsidiary ACI Distribution will not be implementing the new National Auto Glass Specifications (NAGS) list prices that are scheduled to go into effect later this month.

The announcement to customers, e-mailed to AGRR magazine, reads as follows:

February 11, 2005

To Our Valued Customers:

Just like you ... we at ACI Distribution have studied the proposed NAGS rebalancing of the benchmark pricing, scheduled to take effect later this month.

Just like you ... we find the proposal confusing at best, and inconsistent at the very least. We feel there are lots of unanswered questions at this point.

Just like you ... we have closely monitored the industry's reaction to this proposed change.

With few exceptions, it seems the general consensus of the industry distributors is that this is not the right time to cause any further confusion or problems for our customers by adopting and implementing these new rebalanced NAGs list prices. At ACI, we agree.

Based on that, ACI Distribution has decided that we will not implement the new rebalanced benchmark pricing. Instead, we will continue to use our current list prices, addendum, etc ... just as they are now. Of course, any normal changes resulting from market conditions, new parts, etc. will continue to be made as they have in the past.

We hope this will allow you to focus on the issues of how you will SELL your products and services, since the way you BUY those products from ACI will not change.

As always, we appreciate your business, and we look forward to the future as your preferred provider of both automotive and architectural glass and related products.

Thank you for your continued support.

No reproduction, in print, electronic or any form without the expressed written permission of
Key Communications Inc. 540-720-5584.