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Azonix Measurement & Control Strategic Business Unit
Letter to Customers

December 29, 2004

Subject: Azonix M&C Products Discontinuation and Last Time Buy Opportunity

Azonix wishes to announce to all of our customers, OEM's, manufacturer's representatives, and other alternative distribution channels that the Measurement and Controls (M&C) product line will be discontinued in accordance with the schedule shown below.

This decision is prompted by a number of reasons, but principally by dwindling markets due to changing technology, and the extreme difficulty in sourcing the quality and quantity of aged parts required for production. These forces have come together to make it increasingly difficult to continue the product line in the quality and efficient manner which we think you deserve as an Azonix customer.

Below is the schedule for last time order acceptance by product grouping:

µMac Line - orders must be received by February 28th, 2005
Temperature Line - orders must be received by May 31, 2005
µDCS Line - orders must be received by February 28th,2005

Guidelines: Orders will be accepted on a first-come, first-served basis. If parts are not available, Azonix will respond to the request within a two-week time frame from receipt of the purchase order. Azonix will only accept orders for existing customers. We are not accepting new customer orders effective with this notice. Note: Because the µDCS Line is at the late phase of its life cycle, all orders for these products will be handled on an exception basis.

Azonix in-house repairs and calibration will be available until March 31st, 2005 on the µMac line and until June 30th, 2005 on the Temperature Line. Azonix will continue to meet its one-year warranty on all new products. In the event that a product under warranty can not be repaired due to obsolescence, Azonix reserves the right to issue full credit for the product at 75% of the system cost in lieu of repairing it. Again, the µDCS line will be handled on an exception basis.

Contacts:

Calibration/Repair: Burns Engineering
Temp Meter & Temp Sensor only Email:
info@burnsengineering.com Phone:
(952) 935-4400

Calibration/Repair: Lockheed Martin
Technical Operations Email:
garland.c.judd@lmco.com Phone:
(303) 971-9076

Calibration/Repair: Transcat Email:
timc@transcat.com Phone:
(800) 828-1470

We have enjoyed our relationship with you over the years and have appreciated your business.

Sincerely,

AZONIX CORPORATION