11th November, 2008

Dear Modeller,

During a recession we, not unreasonably, expect prices to fall as businesses, particularly the larger ones, trim margins in an attempt to increase sales. Unfortunately this is not going to happen to modelling goods in this recession due to the perilous state of Sterling relative to the Japanese Yen, the American Dollar and the Euro. In recent weeks we have been advised by all our major suppliers of price increases ranging from 10% - 40%, some of which have already taken place. Needless to say we will be doing our utmost to keep any increases to a minimum. In anticipation of these price rises we have forward purchased large quantities of 'bread and butter' stock in order to hold our prices at pre-increase levels that little bit longer.

Please be assured that these price rises are not distributors / retailers 'profiteering', but due to the current world economic climate and the weakness of Sterling.

Best wishes

Stan & Sheila

P.S. Many thanks for your support, in spite of the recession PMP is doing well and looking forward to better times!