Memorex Announces CD-R Media Price Increases

Memorex the #1 Supplier of CD-R Blank Media to the Retail Channel Sites

Reasons for CD Recordable Media Price Increases in 2001

- Increased Blank media costs and future price increases on the way

- CD-R Worldwide Supplies tightening significantly

- Worldwide CD-R Media manufacturing has been consolidated

- Patent holders to strictly enforce royalty fees



Apr 26, 2001, 01:00 ET from Memorex

    SANTA FE SPRINGS, Calif., April 26 /PRNewswire/ -- Memtek Products, Inc.,
 the U. S. distributor of well-known MEMOREX(R) branded computer, audio and
 video recording media, announced price increases today, effective June 1, 2001
 on many of its popular Compact Disc Recordable (CD-R) blank media offerings.
 The reasons for the price increases are, increased blank CD-R media costs, the
 tightening of worldwide supplies, worldwide manufacturing consolidation, and
 strict enforcement of royalty fees by patent holders.  The overall effect of
 these market dynamics is a price increase for Memorex branded CD-R media.
     Last year, slightly over 1 billion blank CD-Rs were imported and sold in
 the United States.  During 2001, the U. S. sales forecast is for 1.46 billion
 units to be sold.  A significant portion of future growth is attributed to
 sales at retail.
     In the short term, per disc cost has increased by over 30% based on prices
 paid at the end of the year 2000.  With the enforcement of royalty fees, CD-R
 disc prices are scheduled to increase again.  Memorex has made significant
 commitments to ensure a steady stream of product availability for 2001 and
 beyond.
     The environment for CD-R media distribution and manufacturing changed
 dramatically over the last year.  Since the beginning of the year 2000, many
 small and medium sized manufacturers have closed their doors.  Last year,
 manufacturers without a consistent channel for their CD-Rs, sold their
 inventory on a "spot" type market.  As a result, excess inventory was often
 sold drastically below manufacturer's production cost.
     Going forward, CD-R patent holders will aggressively enforce their
 licensing agreements and collect their royalty fees.  Due to the enforcement
 of royalties, major overseas manufacturers are unwilling to produce discs
 without executable purchase orders in hand.
     Memtek Products, Inc. president Michael Golacinski stated, "In light of
 increased blank media costs, the tightening of worldwide supply and strict
 enforcement of royalty agreements, we will increase pricing for our CD-R
 product offerings.  We are working closely with our manufacturers to insure
 that we have sufficient product available for our channel and retail partners
 to maintain significant growth in the category."  Mr. Golacinski further
 stated, "We fully expect to build upon our retail market leadership in the CD-
 R media category in 2001."
     Memorex is an industry leading manufacturer and marketer of computer media
 products, computer peripherals and accessories.  In addition to its computer
 products, Memorex continues to maintain its own line of audio and video media
 products.  Since the early 70s, Memorex has been one of the most widely
 recognized names in the consumer electronics industry.  Today, it remains a
 well-respected brand in both the consumer electronics and computer industries.
 Memorex is headquartered in Santa Fe Springs, CA, and is a division of Memtek
 Products, Inc.  For more information on Memorex products, call 1-800-636-8368,
 or visit the company's web site at www.memorex.com.
     For further information, please contact Jim Noyd of Jefferson/Acker PR,
 310-374-5904, jim_noyd@acker.com, for Memorex; or Brad Yeager of Memorex,
 562-906-2800, byeager@memorex.com.
 
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SOURCE Memorex
    SANTA FE SPRINGS, Calif., April 26 /PRNewswire/ -- Memtek Products, Inc.,
 the U. S. distributor of well-known MEMOREX(R) branded computer, audio and
 video recording media, announced price increases today, effective June 1, 2001
 on many of its popular Compact Disc Recordable (CD-R) blank media offerings.
 The reasons for the price increases are, increased blank CD-R media costs, the
 tightening of worldwide supplies, worldwide manufacturing consolidation, and
 strict enforcement of royalty fees by patent holders.  The overall effect of
 these market dynamics is a price increase for Memorex branded CD-R media.
     Last year, slightly over 1 billion blank CD-Rs were imported and sold in
 the United States.  During 2001, the U. S. sales forecast is for 1.46 billion
 units to be sold.  A significant portion of future growth is attributed to
 sales at retail.
     In the short term, per disc cost has increased by over 30% based on prices
 paid at the end of the year 2000.  With the enforcement of royalty fees, CD-R
 disc prices are scheduled to increase again.  Memorex has made significant
 commitments to ensure a steady stream of product availability for 2001 and
 beyond.
     The environment for CD-R media distribution and manufacturing changed
 dramatically over the last year.  Since the beginning of the year 2000, many
 small and medium sized manufacturers have closed their doors.  Last year,
 manufacturers without a consistent channel for their CD-Rs, sold their
 inventory on a "spot" type market.  As a result, excess inventory was often
 sold drastically below manufacturer's production cost.
     Going forward, CD-R patent holders will aggressively enforce their
 licensing agreements and collect their royalty fees.  Due to the enforcement
 of royalties, major overseas manufacturers are unwilling to produce discs
 without executable purchase orders in hand.
     Memtek Products, Inc. president Michael Golacinski stated, "In light of
 increased blank media costs, the tightening of worldwide supply and strict
 enforcement of royalty agreements, we will increase pricing for our CD-R
 product offerings.  We are working closely with our manufacturers to insure
 that we have sufficient product available for our channel and retail partners
 to maintain significant growth in the category."  Mr. Golacinski further
 stated, "We fully expect to build upon our retail market leadership in the CD-
 R media category in 2001."
     Memorex is an industry leading manufacturer and marketer of computer media
 products, computer peripherals and accessories.  In addition to its computer
 products, Memorex continues to maintain its own line of audio and video media
 products.  Since the early 70s, Memorex has been one of the most widely
 recognized names in the consumer electronics industry.  Today, it remains a
 well-respected brand in both the consumer electronics and computer industries.
 Memorex is headquartered in Santa Fe Springs, CA, and is a division of Memtek
 Products, Inc.  For more information on Memorex products, call 1-800-636-8368,
 or visit the company's web site at www.memorex.com.
     For further information, please contact Jim Noyd of Jefferson/Acker PR,
 310-374-5904, jim_noyd@acker.com, for Memorex; or Brad Yeager of Memorex,
 562-906-2800, byeager@memorex.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X42734537
 
 SOURCE  Memorex