Florescent Light Bulb Prices

 

This is another letter to confirm the price increases in the florescent light bulbs.  This was received in the last few days.  The shortage of Rare Earth Oxides is because we buy them from China and they have raised prices and cut supplies.  So if you use these bulbs you had better stock up now.

Howard

July 8, 2011

Philips Lamps Customers:

As a result of the Impact on Rare Earth Oxides and the extraordinary circumstances in the lighting
industry, Philips must revise our previously announced September 1st 10% average price increase for
Linear Fluorescent Lamps (TL), Compact Fluorescent Integrated (CFLi) and Compact Fluorescent
non-integrated (CFLni) to an overall average increase of 25% effective on August 15, 2011. Specific
price increase percentages will vary by fluorescent product family. All other products will remain at
current levels resulting from the previous price increase effective on May 16, 2010. Please note the
August 15th increase is over and above the increase effective on May 16, 2011.

Orders will be accepted and shipped based on current price schedules and availability up until August
12th, 2011. These orders shall not exceed 15% above the previous 90 day monthly average
purchase history.

The August 15, 2011 increase will be factored into stock, end-user pricing programs, and Special
Pricing Authorizations (SPA’s). Updated price schedules and price agreements will be available in an
electronic format on or before August 5, 2011.

As a world leader in lighting, Philips continues to lead the way in making improvements in the areas
which remain within our control in terms of aggressively optimizing product designs which require
REO’s, reducing waste in the manufacturing process, recycling of various materials, as well as,
numerous additional efforts intended to defray cost increases experienced from REO materials.
Though these initiatives continue to deliver improvements, they are not enough to offset the ongoing
and substantial cost impact resulting from the current global REO supply and escalating demand
pressures.

We plan to perform ongoing reviews and update our prices as required every 90 days commencing
August 15, 2011. For more information concerning the REO situation, please contact your local
Philips Lighting Account Manager or Agent. You will be alerted in advance should any supply issues
result from REO availability.

We thank you for your continuing support of Philips Lamp products.
Very truly yours,

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