In response to questions it had received, GlassBytes asked PPG Industries if it wasn't being inconsistent in that its glass operations issued a statement that it would not implement the new NAGS price listing on February 28 while its LYNX Services operation sent out a letter with its new prices which would take effect on February 28. The company has issued this response to GlassBytes.

NAGS REBALANCING STATEMENT

As a result of the NAGS rebalancing, LYNX Services and PPG Auto Glass recently issued correspondence to retail glass service providers stating they are committed to doing everything possible to assist those providers through the transition. LYNX Services is trying to assist retail glass service providers in their use of the rebalanced NAGS, and PPG Auto Glass is enabling customers to continue using their existing glass pricing system.

Most insurance companies have announced provisions to respond to the NAGS rebalance in a manner that will keep retail glass service providers revenue neutral. Consistent with its stated objective of assisting glass service providers through the rebalance transition, LYNX Services is taking steps to utilize methodologies for all of its insurance accounts that are similar to the rebalance response of major insurers. Doing so will help relieve inconsistencies and confusion that could be costly to glass service providers.

At the same time, retail glass service providers that do business with PPG Auto Glass are accustomed to and familiar with the current pricing methodology. In sustaining that common practice for those customers, PPG Auto Glass is also consistent with its objective of assisting glass service providers, keeping glass costs neutral, and reducing, to the extent it is able, the levels of confusion that might otherwise be experienced by glass service providers in the wake of the NAGS rebalance.

We believe that LYNX Services, by using methodologies to achieve the insurance providers objective of achieving revenue neutrality, and PPG Auto Glass, by keeping glass costs neutral, are aligned in their response to the NAGS rebalance.

It is up to each glass service provider to establish their own pricing with insurance companies and to make their own decisions with regard to product purchasing. LYNX Services and PPG Auto Glass are committed to assisting customers and retail glass service providers with information so that they can make good independent decisions.