Dear Bradford White Distributor:

Subject: New Model Numbers for NAECA Compliant Water Heaters

The attached Product Bulletin provides the new Bradford White model numbers for NAECA compliant water heaters and a cross reference for the current model numbers which they replace. We will begin manufacturing the new models effective January 20, 2004 as mandated by the Department of Energy.

New 2004 Wholesale Price Schedules and Temporary Area Price Sheets have been mailed and should currently be in your possession.

As stated in our September 26, 2003 announcement:
We cannot guarantee that orders received after October 24, 2003 will be fulfilled with current product. Subsequently, orders received after October 24, 2003 cannot be guaranteed current pricing.
We will make every effort to fulfill orders as requested, but the transition to the new NAECA compliant models may limit the availability of some models.

As we continuously analyze order volume as it relates to available production for the current style product, we must reiterate our position as stated above. We will make every effort to fulfill in-house orders with current product and pricing, however, effective December 31, 2003, all new orders for NAECA compliant heaters must be for the new model numbers at the new pricing levels. These heaters will not ship until after January 20, 2004.

The new pricing levels are as follows:
All NAECA compliant models with capacities of 60 gallons or less will increase $15.00. All NAECA compliant models with capacities over 60 gallons will increase $20.00. Please use these new prices for any new orders which include NAECA compliant models.
All other residential models, as well as commercial models, specialty product, parts and accessories will increase by 5%.
New prices will be in effect for all orders received after January 12, 2004, regardless of whether the models are affected by the new NAECA requirements.

Thank you for your continued support of Bradford White. We are looking forward to another great year in 2004.

Sincerely,

R. Bruce Carnevale
National Sales Manager