May 10, 2007

To all California purchasers of Novak Electronics, Inc. products:

For several years Novak Electronics, Inc. ("Novak") has advertised its products as "Designed and Manufactured in the U.S.A." or "Made in the USA", or similar language. Although Novak's products are designed and largely assembled by Novak in the United States, a number of components are made outside the United States. We regret any confusion that may have resulted. While Novak has attempted in good faith to comply with all laws pertaining to the usage of the above phrases, it appears California law prohibits the use of such phrases if any component is made outside the United States.

For all of our speed controls, for example, Novak uses on-site robotic SMT machines to place the electronic components on the printed circuit boards, and uses on-site employees to inspect, solder additional wires and components, case, test, and package each unit before it is shipped to our distributors. Although Novak uses American labor and purchases many of its components from American suppliers, because a number of the individual components used in our speed controls such as resistors and capacitors are manufactured outside of the United States, our speed controls and similar products do not qualify for this labeling under California law.

If you have purchased a Novak product within the past four years and believe you have sustained financial damage as a result of Novak's representations, Novak offers the following:

(a) If your purchase occurred between January 1, 2007 through June 30, 2007: Novak will refund your full purchase price.

(b) If your purchase occurred between January 1, 2006 and December 31, 2006: Novak will refund 50% of your purchase price.

(c) If your purchase occurred between May 4, 2003 and December 31, 2005: Novak will refund 25% of your purchase price.

If you wish to participate in this offer, complete the Request for Refund form (click here to download), and ship to Novak both the product and "Proof of Purchase" to:

"Proof of Purchase" means your purchase receipt plus proof of payment, i.e., cancelled check or credit card receipt. Please cover any sensitive information on your proof of payment, such as account number.

This offer is good on all purchases made in the California prior to June 30, 2007, and after May 4, 2003. The returned product and Proof of Purchase must be received by Novak no later than June 1, 2008, to receive a refund. Novak will mail your refund within thirty (30) days after receiving the required documents and product.

If you have any questions or concerns, please contact: Novak Customer Service, Monday through Friday, 8 am - 5 pm PST 1-949-833-8873 or novaksupport@teamnovak.com.

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