Index-based surcharge

 Willowbrook, IL, USA (June 25, 2008) - The last 12 months have been a time of extreme input cost pressure that has not been experienced in over 30 years.  Raw materials continue to face sustained volatility along with record high utilities and transportation costs.  All converters are experiencing these same cost pressures.

To remain a long-term, valued supplier and to be able to meet our customers’ needs in the future, Loparex must have a flexible way in which to respond to the volatility associated with today’s environment.  Effective July 25, 2008, Loparex is implementing an index-based surcharge on all domestically produced contract and non-contract items shipped on or after the effective date.  The surcharge will be a weighted measure tied to the Producer Price Index for Intermediate Materials, Supplies and Components (ID Series: WPUSOP2000), which is reported on a monthly basis by the US Department of Labor for the previous month’s index movement.  Specific data regarding this index and the Producer Price Indices in general, can be found at www.bls.gov/ppi.

Loparex’ monthly surcharge will be adjusted on the 25^th of each month based on index movements, up or down, by a value of 78.6% of the change in index value from the March 2008 baseline (184.1) to the month of shipment.  Once the index returns to, or goes below the baseline index value (184.1), the surcharge will be 0%. 

Loparex remains committed to providing the highest quality release liner products, value, and service to its customers.  For more information, please contact Steve Saunders, Director of Marketing, (steve.saunders@loparex.com) or Chad Harlan, Market Manager, (chad.harlan@loparex.com) to address specific questions concerning the index-based surcharge process. 

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