The letter below is from one of the major memory suppliers in the U.S. March 14, 2011 To Distributors, The flash memory market has been severely impacted by the devastating earthquake and tsunami in Japan. Factories manufacturing key components to USB flash drives are located in Japan, many of which have suffered damage to their facilities or are currently without power. These events have created uncertainty surrounding future supply availability, lead times and pricing. As a result, pricing for flash memory has jumped by as much as 50% within the past 24 hours. While it will take days (and possibly weeks) to assess the full extent of this disruption, it is clear that the situation is unlikely to return to normal anytime soon. What does this mean for memory business? MemoryXpress and our US Stock memory programs are operating per standard leadtimes (including our 24 hour SureShip delivery option). Leeds has significant inventory on hand in its US warehouse covering over 100 styles and memory configurations. Published pricing for the week of March 14, 2011 will be honored through March 19, 2011 with no change. This is consistent with last weeks price levels and remains very competitive given the current market conditions. Future pricing will be evaluated on a week by week basis depending on the latest information from overseas. For existing quotes and future large quantity opportunities, distributors should request pricing and confirm lead times from Leeds Worldsource. Pricing and availability is likely to be impacted by the current supply disruption. As the industrys largest and most trusted flash drive supplier, we are working hard to minimize the impact has on your business and your client relationships. We will continue to keep you updated regarding this situation. Sincerely, David Nicholson President, Polyconcept North America