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MAXELL PREDICTS PRICES TO RISE ON SuperDLTtape, LTO ULTRIUM TAPE

Maxell Corp of America said that it believes price increases are inevitable on all magnetic media products in its data storage, professional and consumer divisions due to rising prices for raw materials and other distribution and supply chain cost increases.

"We are in an extremely competitive business environment that has been very beneficial to our customers with respect to product pricing," said Don Patrican, executive vice president of Maxell. "However, raw materials costs continue to escalate as do other costs of doing business. These economic realities have forced us to re-examine our magnetic media pricing models to ensure the strategic long term stability of our company. The specifics regarding the implementation of the revised pricing policy are in the final stages of development."

The company said anticipated price increases will affect computer media products such as SuperDLTtape and LTO Ultrium tape, professional-use tape and consumer products, such as VHS and camcorder tape.