The recent acquisition of the Timeplex Group, Inc. in August, 1999 has required a re-focus of the Milgo Solutions, Inc. business strategies.  Over the past several months a considerable amount of effort has been made in reviewing and merging the two businesses.  As a result a number of changes have taken place within the organization, and the business has now been unified into a single worldwide operation based in Sunrise, Florida.

One of first stages of turning the company into a profitable and focused operation with a strong commitment on growth is to seriously review our current portfolio of products.

In order to allow us to continue to provide high quality service, we have made decisions to discontinue certain product lines that, in our opinion, have reduced overall marketability, manufacturability, and serviceability. We have focused our efforts on the remaining product lines to ensure their future availability and marketability.

After having made these assessments, the results of a detailed product withdrawal are listed below.

The reasons behind the specific product withdrawals will vary. In some cases the products are no longer technically required in the market.  In others, the pricing pressures are such that neither our customers nor Milgo and Timeplex can seriously expect to generate the profitable margin we need to trade under.  Finally, the volumes of sales for some of these products has decreased preventing their economic manufacture.

The Last Order Dates and Last Ship Dates were established as guidelines to assist you in making your transition plans as smooth as possible.  Although these dates are aggressive, we will work with you closely to identify replacements and supply you with product during the transition.

If you did not receive or were not informed of the product withdrawal plans near the information distribution dates please consider the following:

While our intent is to notify all our customers as quickly as possible, we may not be able to continue to supply various configurations of these products indefinitely. There will be cases where you may not be notified within a reasonable timeframe. In such an event, we will make every effort to provide product for your needs; however, due to factors beyond our control, such as component obsolescence, manufacturability, etc., we may not be able to supply the product indefinitely.

For some of you the impact of these withdrawals will be minimal, for others it will have a greater significance. We will address these issues on a case-by-case basis.  Please feel free to contact your sales account manager or other Milgo/Timeplex representative to ensure that you are fully aware of the details of these withdrawals.   If there are specific issues that need special attention please let us know.  We want to work with you to ensure that any impact is professionally handled.

Individual Withdrawal Notices are available for each product being withdrawn (refer to the links in the Product Models column of the tables below).  In those notices are the specific details concerning the withdrawals including the following topics:

• Product Withdrawal Target Dates

• Part Numbers being withdrawn

• Reason for Withdrawal

• Replacement Product

• Customer Notification (The appropriate Milgo and/or Timeplex Account Managers have been encouraged to notify customers as soon as possible.)

• Special Situations and Exceptions (Any specific situations that may arise should be brought to the attention of your Milgo and/or Timeplex Account Manager as soon as possible.  We will make every attempt to resolve any issues as quickly as possible and minimize inconvenience.)

• Warranty (Warranty periods are not changed by this withdrawal.)

• Repair Policy after Withdrawal (Milgo / Timeplex will continue to provide repair and rework services subject to availability of the necessary parts for the configuration and release level that were in effect upon the Last Order Date, per Warranty and/or contract agreements.)

• Technical Support Policy after Withdrawal (Milgo / Timeplex will continue to provide technical support for installation and configuration services for the product for one (1) year from the Last Order Date or as per Warranty or Contracted agreements.)

• Maintenance and Service Support Policy after Withdrawal (Maintenance and support services will remain available for thirty-six (36) months from the date of discontinuation or through the terms of customer’s current maintenance agreement, whichever is longer.)

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