ANNOUNCEMENT

On February 2,  2007, Vishay Transducers, Inc., a Delaware corporation (“VT”) has filed an action in Los Angeles alleging variety of courses against Zemic which Zemic contends are groundless and ill-conceived. Certain allegations relate to contracts in which Vishay Transducers is not a party. Zemic is also analyzing its rights and courses of action against Vishay Transducers and related corporations in relation to their trade and commercial practices. Zemic is proud of its reputation and heritage. Zemic intends to vigorously defend its rights and interests. Zemic’s customers are assured of Zemic’s continued commitment to serving its customers’ needs and looks forward to having this matter decided. Zemic welcome your comments and input and will be happy to answer any questions you have regarding this matter.