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Concerning recent price increases


Amy

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As of July 15, Klipsch Group, Inc.
increased the pricing on select products sold under the Klipsch®, Jamo®, Mirage®
and Energy® brands, by an average of five percent. However, some products were
not impacted at all.



Worldwide costs of energy, raw
materials and labor have been rising steadily over the past few years. Moreover,
the dollar’s continued weakening against world currencies has further
intensified the problem. Consequently, these increases have impacted the
manufacturing and distribution of our products.



As a leading global manufacturer of
premium sound solutions, we have taken several steps to try and offset these
increases, rather than passing the additional costs over to our valued retail
partners and consumers. Our efforts have included reducing overhead, leveraging
supplier relationships, streamlining the supply chain, upgrading our internal
systems to improve communication, as well as reducing waste and improving
efficiency.



Unfortunately, we have reached a
level where it is impossible to continue absorbing these costs, while still
maintaining the integrity of our products. Because we want to continue the same
high level of quality our customers have come to expect, it was necessary to
adjust the pricing on certain models.



Thank you for your understanding and
continued support of the Klipsch Group and its brands.


Sincerely,





Dave
Kelley


President of Global
Sales

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