Issue: April 2005
By: Frank Bisbee

Bisbee's Buzz

Swimming With Sharks 2005

Buyer Beware. Check's in the mail. Not Exactly. Warning - Warning - Warning. In an ever increasing media hype frenzy, we hear about the new 10 Gig cabling systems. In fiber optic cabling, this is a solid technology that can deliver the goods. In copper based communications cabling, particularly 4PR UTP - four pair unshielded twisted pairs, there is no TIA approved standard for 10G at this time. Several manufactures are touting 10G packages based on drafts or proposals that are being considered by the various standard-making bodies. If you buy into a product that has not been finalized as a standard, you may find your system missing a critical component of performance in the future.

When it comes to cabling standards, the communications consumer has been getting the short end of the stick for more than two decades. The standards have not kept pace with technology and failed to alert the consumer to the obsolescence factor embedded in the "Standard."

Using an antiquated standards system, which is more political than technical, is the "Lazy Buyer" approach. If you don't know what you are buying, don't let some political bureaucracy sell you a load of outmoded cabling. Technology is moving rapidly, and the ability to design a barrier to obsolescence is critical. The cable and connector manufacturers are way ahead of the curve in this important area. The smart money is on the manufacturers and distributors who have designed product configurations which capture the best values in the technology for today's needs and tomorrow's demands. Be sure to read the small print. The warnings about shortcomings may be very subtle.

The infrastructure of communications cabling should be designed to accommodate the needs of the user over the specified time frame. It should support the technology through any changes during the established and required time frame. If you have a three-year lease and you plan to relocate, then the cabling will only have to serve your needs for that period of time. Then, you can move out and leave the cable behind.

Wrong! The removal and disposal of abandoned cable carries a big price tag. We don't know how big the price tag will be yet. However, we do know that the PVC materials and the heavy metals such as lead, which are in many of the cables, will cost a great deal more to dispose of properly. The building owners will only accept this practice of abandonment, until they are handed the bill for the cable mining. Leases are changing radically.

The "standards" have no provisions to address the environmental issues and leave the uninformed buyer facing financial pain. Once again, the "standards" failed to recognize these important issues. It's a good thing that the manufacturers do recognize these environmental challenges and they are working diligently to develop new constructions with materials that reduce our exposure to harmful effects. For example, is limited combustible cable safer than CMP plenum cable? All limited combustible cable is rated as CMP plenum cable. Is it safer? Not exactly, the limited combustible cable is not tested for toxicity. The gases generated by heat decomposition of the materials used in limited combustible cable are highly toxic and can incapacitate the building occupants. Since the standards organizations have no liability for their "standards," they have invested little or no attention to this important aspect of the cabling world.

Cabling systems are being reviewed to capture the new information on the environmental issues and subsequent downstream costs. Some experts predict the cost of cable mining could exceed the cost of the materials and original installation. Disposal and recycling will dictate an important factor in the calculation of these after-the-fact surprises.

Face it, the smart buyer better know a heck of a lot more than the "standards." And the smart buyer needs to forget about the lowest bid. Later on, the lowest bid could have the biggest price tag. Digging out the right answers is no small challenge. We can guarantee that failure to do your homework will certainly result in some form of functional or financial penalty.

But that's just my opinion,

Frank Bisbee
"Heard On The Street" column
www.wireville.com
Jacksonville, FL
(904) 645-9077
frank@wireville.com

NECA presents Conference on Integrated Building Systems

March 10, 2005- Bethesda- The Conference on Integrated Building Systems, formerly the VDV Conference and Expo in Las Vegas will run concurrently with the annual NECA convention and trade show in New Orleans September 17-20, 2005. "This event will prepare electrical contractors to become general contractors and specialty contractors to become prime contractors," said NECA CEO John Grau. "The Master Format has had dramatic changes, and now contractors have to change how they approach business."

What used to be found in Division 16 is now divided among ten different divisions. How do you bid this work? How do you manage your business in this rapidly changing market? "The theme for the 2005 Conference on Integrated Building Systems zeros in on the business issues that contractors need to effectively compete in today's market," said Mary Germershausen, NECA Executive Director Systems Technology. "Whether you have expanded into network cabling, sound, security, fire & life safety, access control, home networking, or all of the above, the Conference on Integrated Building Systems prepares contractors for the growing convergence market."

Attendees will learn from sessions like: How the Master Format will Affect the way you do Business; Opportunities as a Result of Homeland Security; 2005 NEC Changes; How the Courts Interpret Specifications; Security Technology Innovations for the 21st Century; Project Scheduling; Safety in the Workplace - OSHA Training; Ten Things you need to know about Surety Bonds; What to do to Prevent Lawsuits; Lean Construction-Efficient Construction; and Project Delivery Systems. Three eight-hour workshops will be presented on Saturday, September 17th: Master Format Course; Fire Alarm Code Update; and Significant Changes to the NEC.

NECA is expanding the Technical workshops this year to feature not only the latest trends in the electrical industry, but also informative IBS and Lighting workshops. These educational sessions will be presented, all three days, by industry experts right on the exhibit show floor. IBS Conference attendees will have the added benefit of a private reception just with IBS exhibitors on Monday evening, September 19th.

The Conference on Lighting Education will also take place in conjunction with the NECA Convention and Trade Show in New Orleans. Attendees will have the opportunity to purchase a discounted Conference Hopper pass, which allows contractors to register for both events.

New Orleans is a truly unique American city. The Big Easy knows how to entertain visitors of every description. Guests will find a festival of lights, Dixieland jazz, Cajun cooking, voodoo, lazy antebellum mansions framed in Spanish moss and world famous hospitality. The Conference will be co-located between the Omni Royal Orleans Hotel located at 621 St. Louis Street and the Ernest N. Morial Convention Center September 17-20, 2005. Full details are available at www.necaconvention.org . The conference costs $300 and registration opens the beginning of June. To exhibit, call Beth Ellis at 301-2154507.

The National Electrical Contractors Association, founded in 1901, is the leading representative of a segment of the construction market comprised of over 70,000 electrical contracting firms. The industry employs over 650,000 electrical workers and produces an annual volume of over $95 billion. NECA includes 120 U.S. chapters in addition to others in countries around the world. The association sponsors the NECA Show, renowned as the industry's premiere event, which features cutting-edge technologies, highlights new trends, and provides courses to help contractors broaden their knowledge and skill. NECA is dedicated to enhancing the industry through continuing education, labor relations, current information and promotional activities. To learn more about the industry or NECA's services, please visit www.necanet.org.

CABA ANNOUNCES AGREEMENT WITH IBF

The CABA Board of Directors has announced that it has entered into an agreement with International Business Forum. IBF will produce and manage CABA's CONNECT 2005 Intelligent Building Conference - Building development, strategic partnering and private equity investing for emerging technologies. The event will be held June 28, 2005 at the Anaheim Convention Center in Anaheim, CA.

This conference will provide market intelligence and business contacts focusing on the impact that new technology innovations are having on the $37.7 billion dollar worldwide building control systems industry. The focus of CONNECT 2005 will be to bring together venture capitalists, funding sources, new business development, strategic product managers, M&A executives, institutional investors, CTOs, corporate engineers and strategic corporate planning executives with growth technology companies. Attendees will hear cutting-edge information on: how Fortune 500 companies are viewing technology innovations and applications for the large/commercial intelligent and integrated buildings market; why venture capitalists and corporate investors are investing in growth areas of integrated building systems and communications; commanding the value of intellectual property in strategic alliances; and strategic partnering and alliances for business development.

IBF is well suited to run this conference, since its core competency is financial and business conferences focused on venture capital, corporate finance, mergers and acquisitions, corporate strategic investing, risk management, funding technology innovation, commercialization of intellectual property and corporate employee benefits. With the addition of CABA's CONNECT Conference, the organization will now cover integrated systems and building automation.

"We are extremely pleased to be able to take an active role in the large building and integrated systems sector through our new partnership with CABA," states Alexandra Scott, President and CEO of International Business Forum. "Working with the association will increase the scope of our key business contacts and provide the association with the flexibility it requires to focus on conference programming rather than logistics."

Founded in 1989 by Alexandra Scott, IBF organizes conferences to provide strategic information to key business executives. Attendees include: venture capitalists, technology start-ups, entrepreneurs, investment and commercial bankers, chief executive officers, chief financial officers, pension plan sponsors, endowment and foundation investment officers, corporate investors, money managers; employee benefits managers, new business development executives and corporate decision makers.

With the inclusion of the CONNECT Conference, IBF will also be able to feature numerous large building industry stakeholders who will discuss and identify key issues facing the sector with respect to integrated systems and intelligent building technologies.

"As continuing host of CONNECT 2005, CABA will ensure that critical issues are presented and discussed among key industry stakeholders," said Ronald J. Zimmer, CABA President & CEO. "It is CABA's intention to attract industry leaders who encourage the development and promotion of integrated systems and automation in large buildings."

Under the terms of the agreement, CABA will retain full ownership of the conference.

CABA is also pleased to announce that it has selected the site for CONNECT 2005. The event will be held in conjunction with the Realcomm 2005 conference also being held June 25-28, 2005 at the Anaheim Convention Center.

CABA's CONNECT Conference will also be located along side the North American Commercial Real Estate Congress and the Office Building Show presented by the Building Owners and Managers Association (BOMA) International, also being held June 25-28 at the Anaheim Convention Center. Access to both the Realcomm and BOMA exhibition floors will be free for CONNECT attendees, and discounts will be made available to attend the Realcomm sessions.

"People are simply out of time," said Jim Young, CEO and Producer, Realcomm. "Now, more than ever, we need to learn at an accelerated pace and strategic networking is critical. We just can't expect people to go to 15 conferences each year. We are trying to listen to the industry. The concept of bringing a number of conferences into the same city at the same time will make it easier for our professionals to participate. We are happy that CABA and BOMA will join us in this milestone event and help us to build on the concept of a Commercial Real Estate Week."

Commercial Real Estate Week will feature the most successful, progressive and innovative commercial real estate professionals and technology in the world.

About CABA
CABA is the only industry association to offer industry intelligence to stakeholders in all areas of home & building automation. CABA's resources cover areas such as HVAC, lighting, security, A/V, communications technologies, energy management and controls. A number of resources are available through the association including iHomes & Buildings magazine, CABA's Summits and Conferences, CABA's monthly eBulletin, Information Series reports, Event Reports and the CABA web site. Please visit www.caba.org for further information.

About IBF
IBF - International Business Forum presents financial and business conferences on venture capital, corporate finance, mergers & acquisitions, corporate strategic investing, defined contribution/401(k) plans, risk management, funding technology innovation, commercialization of intellectual property and corporate employee benefits. IBF conferences provide attendees with leading-edge information, and new business contacts to achieve business objectives. More information is available at www.ibfconferences.com.

About Realcomm
Realcomm is the world's leading conference and exposition on technology, business solutions, intelligent buildings, and the Internet for the Commercial Real Estate industry. The annual conference targets the needs of Commercial Real Estate at all levels including executive, management, professional and support. Realcomm 2004 will be held June 3-4, 2004 in San Francisco, CA at the Marriott Hotel and Conference Center. For additional information, please visit www.realcomm.com.

Hitachi Announces the Year-End Dividend for Fiscal 2004

TOKYO--(BUSINESS WIRE)--March 15, 2005--Hitachi, Ltd. (TSE:6501 - News; NYSE:HIT - News) today announced a plan for the year-end dividend for the fiscal year ending March 31, 2005 as follows. The plan will be finally authorized at a meeting of the Board of Directors to be held in the middle of May 2005 after the statutory audit of the financial statements etc. under the Commercial Code of Japan.

NAED and TED Magazine Celebrate 40 Years of Marketing,
Sales Education with the 2005 AdVenture Conference

(ST. LOUIS, MO)…NAED and TED Magazine celebrate 40 years of marketing and sales education with the 2005 AdVenture Conference-North America's Electrical Marketing & Sales Conference, July 31 - Aug. 2 at the Chicago Hyatt Regency, Chicago, Ill. This premier sales and marketing conference for North American electrical distributors, manufacturers, and manufacturer's representatives is reclaiming the AdVenture name as a tribute to its rich 40-year history. NAED has hosted more than 5,000 registrants since its first AdVenture Conference, and TED has presented more than 1,000 Best of the Best Marketing awards in that timeframe.

The conference is sponsored by NAED and TED Magazine, along with the Electro-Federation of Canada (EFC), National Electrical Manufacturers Association (NEMA), and National Electrical Manufacturers' Representatives Association (NEMRA). The conference is also endorsed by Affiliated Distributors (A-D), IMARK, Equity/EDN, the Electric Association of Chicago, and the Business Marketing Association (BMA). The purpose of the conference is to increase and improve marketing and sales efforts in the electrical distribution industry through best practices, networking and a combined effort to improve skills and knowledge.

For distributor Todd Reed, counter marketing coordinator with Graybar in St. Louis, Mo., this year's AdVenture will be the seventh conference he has attended. "Every year I've been able to take something away from the conference and apply it to my work," said Reed. "And the more I went, the more comfortable I was with other distributors and with the manufacturers. I was able to speak to the top people in suppliers' marketing departments and get some questions answered that my local reps couldn't answer. It's helpful to be working with a name, not a company. You get the manufacturer's insight into how things are done."

The 2005 AdVenture Conference is designed to benefit anyone in the electrical industry who has direct or supervisory responsibility for marketing, sales, or advertising, including advertising agency personnel. Highlights include separate breakout sessions for sales and marketing, combined sessions, roundtable discussions, expert panels, sessions on TED Magazine's Best of the Best marketing awards, and a sales-marketing team focus.

Susan Smith, vice president of marketing for Pass & Seymour/Legrand in Syracuse, N.Y. also appreciates the opportunity to interact with other marketing professionals. "The AdVenture Conference has a strong heritage of being a great venue for manufacturers and distributors to share best practices in marketing. It's valuable to me to be with other professionals who have the same goals of building business through distribution. It's inspirational, motivational and fun," said Smith.

DYMO Industrial Hires National Sales & Training Manager

Al Feaster appointed as National Sales & Training Manager
for DYMO's Industrial Business Unit

DYMO Industrial proudly announces that Albert Feaster has joined their growing team as the National Sales & Training Manager. In this role, Al will have responsibility for managing relationships and building RhinoPRO sales with strategic national datacom accounts. Al will also have an important dual role by leading our training and education initiative.

"RhinoPRO Label Printers are excellent products and I'm excited about the prospect of leveraging the excitement that DYMO Industrial has created within the datacom market to drive category growth for our distribution partners" said Al Feaster.

"The Industrial Business Unit at DYMO is committed to building a world class organization by investing in top industry talent. Al's experience with Krone, Ortronics, ADC and as the Executive Director of BiCSi provides us with a valuable network that will allow us to get a fast start within the industry", said Ernie Racenet, Global Director, Industrial Business Unit, DYMO Corporation. "Labeling has many important end user benefits, yet the category remains under-leveraged by distribution and therefore offers the potential to create a substantial new revenue stream for distributors."

Distributors interested in selling the RhinoPRO range of Industrial Labeling Tools or partners that desire more information about the RhinoPRO training program are encouraged to contact Al Feaster at afeaster@dymo.com.

General Cable Corporation Acquires Specialty Electronics and Datacom Assets from Draka Comteq

General Cable Corporation (NYSE:BGC - News) announced today the closing of its acquisition of certain assets of Draka Comteq's business in North America, which was previously announced on November 30, 2004. Comteq, based in Franklin, Massachusetts, has strong technical and manufacturing capabilities in electronic cables, as well as high-end data products. The assets acquired also include the well-known brand "Helix/Hi-Temp." General Cable intends to continue operations at the Franklin location.

"We are excited about the product and customer opportunities that will be available to us with the expanded product lines of our combined businesses. The Franklin facility will greatly expand our product offering of specialty electronics and data communications cables. It will also allow us to add new customers for data cables and provide us needed capacity for growth opportunities in the communications market," said Greg Lampert, General Cable's Vice President and General Manager, Carol Brand Products. "We are also excited about the 'Helix/Hi-Temp' brand name, which has a rich history that dates back to the mid-1950s. We look forward to working closely with our new associates at the Franklin facility."

General Cable, headquartered in Highland Heights, Kentucky, is a leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty and communications markets. Visit our website at www.GeneralCable.com.

Certain statements in this press release, including without limitation, statements regarding future financial results and performance, plans and objectives, capital expenditures and the Company's or management's beliefs, expectations or opinions, are forward-looking statements. Actual results may differ materially from those statements as a result of factors, risks and uncertainties over which the Company has no control. Such factors include economic and political consequences resulting from the September 2001 terrorist attack and the war with Iraq, domestic and local country price competition, particularly in certain segments of the power cable market and other competitive pressures; general economic conditions, particularly in construction; changes in customer or distributor purchasing patterns in our business segments; the Company's ability to increase manufacturing capacity and productivity; the financial impact of any future plant closures; the Company's ability to successfully complete and integrate acquisitions and divestitures; the Company's ability to negotiate extensions of labor agreements on acceptable terms; the Company's ability to service debt requirements and maintain adequate domestic and international credit facilities and credit lines; the Company's ability to pay dividends on its preferred stock; the impact of unexpected future judgments or settlements of claims and litigation; the Company's ability to achieve target returns on investments in its defined benefit plans; the Company's ability to avoid limitations on utilization of net losses for income tax purposes; the cost of raw materials, including copper and aluminum; the Company's ability to increase its selling prices during periods of increasing raw material costs; the impact of foreign currency fluctuations; the impact of technological changes; and other factors which are discussed in the Company's Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2004, as well as periodic reports filed with the Commission.

Mohawk Offers ArmorLite™, An Expanded Line of In-Stock Interlocked Armor Fiber Optic Cables

Leominster, MA, February 11, 2005... Mohawk, a leading manufacturer of fiber optic and copper cable products, announces the ArmorLite� family of fiber optic cables, manufactured with interlocked armor to provide enhanced cable protection. This robust cable eliminates the need for additional innerduct, which saves installation time and space in plenum or riser pathways. In addition, significant product and labor costs are realized with ArmorLite's "one pull" installation procedure.

Depending on the environment, ArmorLite is available with either aluminum or more heavy-duty steel interlocking over either tight-buffered or loose-tube constructions. Armoring provides excellent mechanical protection and is both durable, yet flexible. These cables meet stringent industry flame-resistant testing and are rated Type OFCP or Type OFCR. And with all Mohawk cables, jacketing is lead-free.

"ArmorLite is mainly used to replace indoor cables previously installed in conduit, innerduct, trays, riser shafts, wiring closets or plenums," states Mike Connaughton, RCDD, Fiber Optic Sales Manager, Mohawk. The rugged construction is ideal for heavy industrial applications where an added measure of protection in a flexible design is required. Cables are available from stock in plenum in 6, 12 and 24 fiber counts. Other versions are also available up to 144 fibers.

"The most important feature of a fiber optic cable jacket is to protect the cable's integrity in the environment," notes Connaughton. "But, when additional protection is needed, the cable is installed in conduit or innerduct. With ArmorLite, not only are we providing the highest protection of the fiber, but we are also saving time for the installer by eliminating the conduit. With one pull, there is less stress on the cable which even further adds to the cable's performance," he adds.

About Mohawk
Mohawk, a division of Belden CDT, is headquartered in Leominster, Massachusetts, and has been providing fiber and copper cable innovations for over 50 years. Their headquartered location dedicates 210,000 square feet to today's most advanced facilities for the design, development and production of copper, fiber optic, and hybrid wire and cable. Mohawk, an ISO 9001 certified company, develops products to meet and support TIA/EIA, ISO/IEC, ICEA and NEMA standards. As part of the global Belden CDT operations, Mohawk is supported with worldwide management, financial resources, and distribution capabilities. http://www.mohawk-cdt.com

Anixter and Times Microwave Systems Sign Distribution Agreement for LMR(R) Products

GLENVIEW, Ill., and WALLINGFORD, Conn., March 23 /PRNewswire-FirstCall/ -- Anixter (NYSE: AXE - News), a worldwide distributor of communications products, electrical and electronic wire & cable and Times Microwave Systems, the industry leader in the design and manufacture of high performance coaxial cables and RF transmission line components, today announced that they have signed a distribution agreement for the Times LMR® product line which under the agreement, Anixter will stock and distribute to its customers throughout North America.

Times LMR® cables are flexible, non-kinking low loss RF transmission line cables that utilize easy-to-install connectors and are suitable for use as antenna feeders, system jumpers and interconnects.

"We are excited that this new partnership will allow our customers to have access to the broadest flexible cable product line available in the wireless communications market," said Mike Durot, Anixter's Vice President of Marketing for Electronic Products.

According to Robert D. Perelman, Vice President, Commercial Sales & Marketing for Times Microwave Systems, "This agreement will help Times to expand into new market segments through Anixter's extensive organization, experience and presence in a broad range of industries."

www.timesmicrowave.com      http://www.anixter.com

SYSTIMAX(R) Solutions Expands Portfolio by Delivering Management Solutions
for Enterprise Wireless LAN Deployments

SYSTIMAX Solutions(TM), a worldwide leader in structured connectivity solutions and services for businesses, today announced it has selected Wavelink®, a leading provider of mobile infrastructure management software for the enterprise, as the wireless LAN management solution to facilitate the administration and management of the SYSTIMAX AirSPEED Solution wireless networks for enterprise customers.

When it is deployed as part of the SYSTIMAX AirSPEED Solution, Wavelink's wireless LAN management software products, Wavelink Mobile Manager(TM) and Wavelink Avalanche(TM), enable network administrators to deploy, secure and manage wireless networks and mobile devices rapidly and easily. Increased customer efficiency in the deployment and management of wireless LANs with Wavelink is a cornerstone of SYSTIMAX Solutions' strategy to deploy wired and wireless solutions that enhance customers' return on investment.

"As enterprises move to set up wireless networks to complement their wired networks, they need a central and seamless way to manage both sides," said Stephen Drake, Program Director, Mobile Software for IDC, a leading global market intelligence and advisory firm in the information technology and telecommunications industries. "Suppliers who address the needs associated with both enable customers to integrate wireless more easily and securely into their current business processes."

"Wireless LAN management is an integral part of the SYSTIMAX AirSPEED wireless solution for our enterprise customers," said John Terhoeve, Director of Strategy and Business Development for SYSTIMAX Solutions. "We believe Wavelink is an industry leader in this space due to their superior management and access control features that complement our wireless solution. Our customers can be confident that Wavelink's management solution will help them reduce operational costs and improve the return on investment in their wireless LAN."

"Together, Wavelink and SYSTIMAX Solutions will provide customers with a highly integrated and secure management solution to support mobility and productivity across an organization," said Dave Bullis, CEO and President of Wavelink. "We expect customers to benefit from the rapid deployment and easy management of their wireless networks when they use our products. This agreement with SYSTIMAX Solutions is an important step in meeting the management needs of customers as they build more sophisticated wireless environments."

The SYSTIMAX AirSPEED Solution combines state-of-the-art, enterprise-class access points with Signal Enhancing Antennas (SEA) and rack-mounted Power over Ethernet (PoE) devices to enable mobility, productivity and network security in the workplace. www.systimax.com

New Lighting Conference for Electrical Contractors in New Orleans

March 10, 2005- Bethesda- NECA raises the bar on educational opportunities for all electrical contractors with the launch of the new Conference on Lighting Education September 17-20, 2005 in New Orleans. The first annual event will run concurrently with the NECA Convention and trade show. "This event is for all electrical contractors and NECA invites the industry to take advantage of this unparalleled opportunity," said NECA CEO John Grau. "This Conference can teach contractors how to learn to turn lighting projects into more lighting profits." Recent industry research clearly identified the electrical contractor's specification power in the area of lamps, ballasts, fixtures, and controls in both new construction and in renovation/retrofit projects. NECA is assembling the finest roster of lighting industry experts to focus on specific contractor needs.

Mary Beth Gotti, Manager, of GE's Lighting Institute will present the Conference Keynote Address "Opportunities in the Lighting Market Today." Earl Print, recently retired Director Sales Development & Lighting Education for Lightolier, and Illuminating Engineering Society of North America (IESNA) Board member, will talk on "Improvements in Lighting Systems Technologies: Lamps, Ballasts & Luminaires" and "The Cost of Light". Lithonia Lighting / Acuity Brands Vice President, Cheryl English will present "Lighting Codes Update" and "Neighborhood Friendly Outdoor Lighting". Ms. English is also the Vice Chairwoman of NEMA's Lighting Division. Randy Burkett, President of Randy Burkett Lighting Design, and former President of the International Association of Lighting Designers (IALD) will present "Substitution: Value Engineering with Quality" and "Make More $$$ Up selling than Substituting". The Conference on Lighting Education will feature an eight-hour workshop on "Lighting Design Basics" led by Fred Oberkircher, of Texas Christian University's Center for Lighting Education, also an IESNA Board member. Mark Lien, Manager of Cooper's Lighting Center, the SOURCE, will present " The 5 Forces of Change in the Lighting Industry" which will include an energy crisis update, the globalization of lighting products, the effects of light on life forms, energy and environmental legislation, and radical new technologies. All these issues have a tremendous effect on how we conduct our business.

Lighting industry expert Craig DiLouie will lead a panel discussion among members of the Lighting Controls Association, a division of NEMA. They will discuss energy efficiency innovations in controls. Panel members include representatives from Lutron, Leviton, Advance Transformer, and Square D. Additional topics include; Lighting for Safety and Security; LED Lighting; Health Care Lighting, The Aging Eye, and more.

NECA will offer lighting technical workshops on the expanded exhibit show floor. Topics such as Best Practice for Installations, Residential, Commercial and Industrial which are joint NECA / IESNA developed documents; What's Happening in Compact Fluorescent Lamp Technology; and High-Intensity Discharge Update.

The Conference on Integrated Building Systems (formerly VDV Conference & Expo) will also take place concurrently with the NECA Convention and Trade Show in New Orleans. Attendees will have the opportunity to purchase a discounted Conference Hopper pass, which allows contractors to register for both events.

New Orleans is a truly unique American city. The Big Easy knows how to entertain visitors of every description. Visitors will find a festival of lights, Dixieland jazz, Cajun cooking, voodoo, lazy antebellum mansions framed in Spanish moss and world famous hospitality. The Conference will take place at the high-tech Ernest N. Morial Convention Center September 17-20, 2005. Full details are available at www.necaconvention.org . The conference cost is $300 and registration will open the beginning of June. For exhibit information, call Beth Ellis at 301-2154507.

The National Electrical Contractors Association, founded in 1901, is the leading representative of a segment of the construction market comprised of over 70,000 electrical contracting firms. The industry employs over 650,000 electrical workers and produces an annual volume of over $95 billion. NECA includes 120 U.S. chapters in addition to others in countries around the world. The association sponsors the NECA Show, renowned as the industry's premiere event, which features cutting-edge technologies, highlights new trends, and provides courses to help contractors broaden their knowledge and skill. NECA is dedicated to enhancing the industry through continuing education, labor relations, current information and promotional activities. To learn more about the industry or NECA's services, please visit www.necanet.org.

Eaton Corporation Pledges $500,000 To NAED Foundation

(ST. LOUIS, MO.)…The National Association of Electrical Distributors (NAED) announces a $500,000 commitment by Eaton Corporation to the NAED Education & Research Foundation.

"Eaton has long been committed to the valued role of electrical distribution to our industry and is proud to support the NAED Education & Research Foundation. We are always looking for ways to improve our business processes and to add value for our customers and channel partners. We applaud NAED's efforts to foster innovation among its membership through programs like the Channel Advantage Partnership...Fresh ideas and fresh approaches will continue to ensure the mutual success of both distributors and manufacturers," said Randy Carson, senior vice president and group executive for Eaton.

Eaton Corporation is a diversified industrial manufacturer with 2004 sales of $9.8 billion. A global leader, Eaton produces fluid power systems and services for industrial, mobile and aircraft equipment; electrical systems and components for power quality, distribution and control; automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety; and intelligent truck drivetrain systems for safety and fuel economy. The company has 55,000 employees and sells products to customers in more than 125 countries.

In the electrical industry, Eaton is a leading manufacturer of electrical control, power distribution, and industrial automation products and services. Through advanced product development, world-class manufacturing methods, and global engineering services and support, Eaton provides customer-driven solutions under brand names, such as Cutler-Hammer®, Powerware®, Holec®, and MEM®, which serve the changing needs of the industrial, utility, light commercial, residential and OEM markets worldwide. For more information, visit www.eatonelectrical.com.

"We are thankful for Eaton's generous donation to the NAED Education & Research Foundation. This gift is a big step toward building a permanent funding base for the Foundation and will help us to focus our efforts on developing progressive training resources and research projects to address the needs of our industry," said Bill Elliott, chairman of the Channel Advantage Partnership Council and president of Elliott Electric Supply in Nacogdoches, Texas.

The company's donation will become part of an endowment fund for the NAED Education & Research Foundation. The principal amount of the endowment will remain untouched, while the interest will be used to commission future projects and studies. As a $500,000 donor, Eaton will be recognized at the regent level and have a permanent position on the Channel Advantage Partnership Council, which will help select future educational programs and research projects.

For more information about contributing to the NAED Education & Research Foundation endowment, contact Bill Elliott, Channel Advantage Partnership Council chairman, at (936) 569-1184 or billelliott@elliottelectric.com.

NAED is the trade association for the $70+ billion electrical distribution industry. Through networking, education, research, and benchmarking, NAED helps electrical distributors increase profitability and improve the channel. NAED's membership represents approximately 4,100 locations internationally. www.naed.org

Cabling Business Magazine Deserves Special Recognition

The team at Cabling Business Magazine deserves special recognition for a constantly improving magazine. The new logo for CBM on the cover of the March 2005 issue is impressive and certainly captures the theme of this fine publication.

Hats Off to their crew of excellent writers. Lee Badman is always a hit. Carol Everett Oliver is on top of the issues and does some great case histories. This month's issue packed a real punch with the powerful article on Abandoned Cable by Betsy Ziobron. www.cablingbusiness.com

Avoiding a Dangerous Journey

The potential dangers of exposed cabling in environmental air plenums are acute. To that end, action taken by NFPA in its 2002 edition of the National Electrical Code was a bold stroke for life safety.

By John Michlovic


In the past few years, much has been written about the potential dangers of exposed cabling in environmental air plenums.

The risks associated with the burning of combustible plastic coated cabling in ceiling or access floor plenums have been exposed in cabling and building construction magazines by a variety of industry experts. Although the evidence of a problem appears to be quite clear, the conclusions drawn by these industry reporters generally stop short of a condemnation of exposed cabling in these "concealed spaces". This article will attempt to summarize the evidence of a problem and "connect the dots" for those who have not read the evidence.

First, lets examine how combustible plastic coated cabling became Code acceptable. The standard that governs the types of acceptable materials in ceiling or access floor plenums is NFPA 90A -- Standard for the Installation of Air-Conditioning and Ventilating Systems. Since 1937, HVAC designers have used this for environmental air design issues. Prior to 1975 it required that all materials used in plenums be "non-combustible" or "limited combustible" with a maximum smoke developed rating of 50. Telecom cables meeting this requirement would be classified as "limited combustible".

Since environmental air (supply or return air) could eventually be breathed by the building's occupants, safe materials were required in the air stream so that in the event of a fire, dependence upon smoke dampers or smoke alarms to assure safety would not be paramount.

In 1975, the industry petitioned NFPA for relief from the stringent requirements of Standard 90A. Meetings were held to discuss the pros and cons of allowing cables of lesser fire and smoke performance to be exposed in plenums. Ultimately, NFPA agreed to allow combustible cables to be used -- intending the approval for limited use only (just a few cables). However, the limited use restriction was never written into the standard.

CMP cables (Communications Multipurpose Plenum) meeting a new less stringent criteria became the standard of the cabling industry from that time and designers, building owners and telecom specialists have used this fire retardant cable in unlimited amounts to solve their ever growing cabling demands.

Major issues regarding cable fire safety have been documented in research conducted in the USA and in Europe. Chemists and safety experts read the evidence with alarm, but designers and users are unaware of the dangers because the current cable constructions are "Code Approved".

POTENTIAL DANGERS OF PLENUM CABLING

What are the dangers of exposed combustible cables in plenums? Here's the downside if a fire occurs involving cables in a plenum:

1. Fuel Load Combustible plastic insulation around the conductors in a typical 4 pr. twisted telecom cable weighs about 4.7 pounds per 1000 feet of cable. The fuel load or BTU content of certain types of plenum rated cable insulation, especially polyolefins, can rival that of gasoline. In heavily cabled plenums, it's like placing a gallon of gas within the plenum for every 10 to 30 feet of cable tray. The fuel load of CMP cable is 2.5 times the limit for the "limited combustible" cable described in the primary (pre-1975) requirements of NFPA90A.
   


2. Smoke Developed Index The smoke developed by burning CMP plenum rated cable can be up to 17 times the level allowed for "limited combustible" cable in the pre 1975 NFPA Standard 90A.
   


3. Toxic Gasses Burning plastics of any kind creates toxic gasses. In ceiling plenum fires these gasses will usually be diluted in the re-circulation system if smoke dampers do not exist or do not function. Under access floors, a cable fire can be more dangerous because the hot toxic gasses can exit anywhere and can be more concentrated than re-circulated and diluted gasses in re-circulated air. Also there is a higher probability that the gasses will exist within the breathing zone. One should not attempt to crawl out of an access floor fire; running is the preferred method.
   


4. Flame Spread Fire retardant jackets on new cables will generally protect against ignition for at least ten minutes of exposure to a fire, depending upon its temperature. Flame spread or travel is limited to five feet in 20 minutes by NFPA Standard 262. Worn, heat aged, slit, or damaged jacketing that exposes cable insulation to a fire can ignite within minutes and spread flames more rapidly than the five feet in 20 minute criteria. Older cable of the latter type represents the bulk of existing cable, yet most testing of cables is performed on "new" cable with sound fire retardant jacketing. Thus, cable testing can seriously underestimate the actual danger of older cabling, since the cabling industry places no "time limit" on the fire safety or performance of its products.
   


5. Unauthorized Cable Given the 2-1/2 times price differential between CMP plenum rated cable and non-rated CMG (Communications Multipurpose General) cable, it is highly likely that some CMG cable has been laid into plenum spaces, although it is not rated for plenum use. This scary scenario may occur in only rare cases, but when it does, it would create a fireman's nightmare if ignited. This non-fire retardant cable ignites quickly, burns like a candle, and creates large amounts of black sooty smoke. If interspersed with CMP cable, it can act as a fuse to ignite the cable bundle and spread flames quickly along its entire length.
   

• Keep fuel away from ignition sources. All plastics are fuel and certain types compare to gasoline by weight. Electrical wire overheating can ignite plastics.
  


• Toxic smoke kills people in a building fire (not heat or flame). Burning plastics create some of the most toxic gases known to man.
  


• Keep fuel out of concealed spaces if possible.
  


• Conduit, cells, and steel raceways are not concealed spaces; ceiling and access floor plenums are.
  


• The hottest part of the flame is at the top. Where are you locating your combustible cables?
  


• Carbon Monoxide (CO) gas can be produced at a temperature lower than that required to begin ignition.
  


• Minimize materials that will produce toxic smoke in a fire, especially in plenums. The intent of NFPA 90A "Standard for the Installation of Air-Conditioning and Ventilating Systems" should be to keep this from happening...it does not.
  


• Do not locate cable trays containing high fuel loads directly beneath horizontal structural members. Cable tray fires can produce temperatures exceeding 1400°F. Structural steel begins to weaken at less than 1000°F. Open web joists are most susceptible to collapse. Load Resistance Factor Design (LRFD) for steel members is less conservative than previous methods, producing lighter weight members.
  


• Fire detection devices should be located above ceiling level if combustible materials are present. Plastic coated cables are combustible.
  


• Fire suppression equipment should be located above the ceiling if combustible materials are present.
  


• The latest NFPA statistics available at this writing reveal an office building fire every 90 minutes in the USA (5800 fires per year; 16 per day, 7 days a week).
  


• There is no known limit to the number of ways a fire can start.
  

Hitachi Cable Manchester (HCM) Announces Joining With Affiliated Distributors

This partnership will provide AD customer members throughout Canada and the United States access to hundreds of HCM products. AD is headquartered in King of Prussia, PA, and maintains the largest network of electrical supply distributors in North America. With over 350 independent distributors in Canada and the US, the AD network consists of over 5,000 distributor locations. AD customer members in Canada and the US will now be able to choose from the complete line of HCM products. HCM, with its manufacturing facility in Manchester, New Hampshire, is a leader in the manufacture of premise and fiber optic communication cables. HCM's product line includes a wide selection of Category 3, 5e, and 6 twisted pair cable and singlemode and multimode fiber optic cables ranging from 2 fibers all the way up to 432 fibers. A complete listing of all HCM products can be found at our website, www.hcm.hitachi.com.

NAED Recently Released "Warehouse Pro"

The Education & Research Foundation of the National Association of Electrical Distributors (NAED) recently released Warehouse Pro, a detailed training workbook for all warehouse personnel in the electrical industry. This latest educational offering was developed to provide staff with the skills and knowledge necessary to succeed in the warehouse environment and the industry as a whole.

"Training is key to any organization. The ideal warehouse professional is dependable, trustworthy, and accurate. Warehouse Pro shows employees why these qualities are important and how their position plays a pivotal role in their company's success," said Kim Wilborn, human resources manager for the Reynolds Company in Dallas, Texas. "In addition, the topics covered in this course such as warehouse operations, automation, and customer service are very relevant. In particular, learning about customer service is essential since it is the main function of warehouse professionals. They may not interact on a personal level with the external customer, but they ensure that clients receive the correct materials in the correct quantity when requested."

Warehouse Pro was designed with improved efficiencies in mind. Presented in 10 manageable sections, the course provides personnel with a deeper understanding of electrical distributor operations, their role as a warehouse pro, what to expect on the job, strategies for working more efficiently, and safety precautions. This course is appropriate for new employees who need a solid grounding in warehouse and distributor operations or as refresher program for experienced professionals. Employees can learn at their own pace with this self-study workbook or this course can be facilitated in a group setting.

"While all training is important, training for those employees who must keep the warehouse operating smoothly is particularly vital to a company. Getting the right product to the right customer in a timely manner is critical to a business's success. When members and affiliates invest in the future of their warehouse professionals, they are investing in the future of their company," said Michelle Jaworowski, vice president of NAED and executive director of NAED's Foundation.

Members and affiliates can purchase the Warehouse Pro Course for $99, with discounts offered on orders of six or more. Counter Pro, a similar training workbook developed in 2003 for counter sales staff, is also available from the Foundation. For additional information and to order, visit the "education" section of www.naed.org

Typoglycemia = proof readers madness!!!

Typoglycemia. Don't delete this because it looks weird. Believe it or not you can read it. I cdnuolt blveiee taht I cluod aulaclty uesdnatnrd waht I was rdanieg The phaonmneal pweor of the hmuan mnid Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer inwaht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? yaeh and I awlyas thought slpeling was ipmorantt.

AFS Introduces its new line of Micro OTDR's

Advanced Fiber Solutions announced today their newest line of PC-based OTDR's. The uOR series micro OTDR's are the smallest fully functional line of PC-based OTDR's on the market today. The uOR-100 series multimode OTDR with a dynamic range of 26dB is ideally suited for the premise market while the uOR-200 series singlemode OTDR offers four versions with dynamic ranges from 31dB to 43dB for accurate measurements for long haul and outside plant applications. The uOR series ODTR operates with a USB interface, which eliminates the need for batteries and are offered at a starting price of less than $5,000 per unit.

Designed specifically for Fiber Optic Contractor's for field installation and service, this lightweight, handheld and inexpensive PC-based micro OTDR makes it easy to test your fiber link for breaks, splice loss, attenuation and distance using Advanced Fiber Solutions Windows 9x/NT//2000 and XP compatible software. The Software is capable of displaying, storing, reading, analyzing and printing several traces at the same time.

"The uOR series demonstrates Advanced Fiber Solutions commitment to providing fully functional, accurate, affordable and reliable fiber optic test equipment. We are pleased to offer our customers one of the most compact and fully functional PC-based Micro OTDR's on the market today." Says Garreth Conachy, President of Advanced Fiber Solutions. www.afs-i.com

Dr. Katsuhiko Okubo and Richard C. Smith to Join CommScope Board of Directors

CommScope, Inc. (NYSE: CTV - News), a world leader in cable and connectivity solutions for communications networks, today announced the expansion of the size of CommScope's Board of Directors from six to eight directors as well as the election of two new directors who will join CommScope's board on April 1, 2005. Katsuhiko (Kat) Okubo, PhD, a former executive of The Furukawa Electric Co., Ltd., and Richard (Dick) C. Smith, a former executive of Motorola, Inc., were elected at CommScope's Board of Directors meeting today.

"We are extremely pleased to name Kat Okubo and Dick Smith to our Board of Directors," said CommScope Chairman and Chief Executive Officer Frank Drendel. "They bring a wealth of knowledge to us and will further strengthen our board as we move forward as a global leader in telecommunications."

Dr. Okubo, President of Okubo Technology Management Inc., founded his company in October 2004 after serving The Furukawa Electric Co., Ltd. for nearly 40 years. During his tenure with Furukawa, he held various positions in the areas of research and development, manufacturing and business development. From June 1999 until June 2004, Dr. Okubo served as a Corporate Director and a Corporate Senior/Executive Vice President of Furukawa, and was involved in the formation of OFS BrightWave, LLC, a joint venture between CommScope and Furukawa that was formed to operate certain fiber optic cable and transmission fiber assets acquired from Lucent Technologies Inc. Dr. Okubo is also the author of a highly regarded Japanese textbook on optical fiber technologies.

Mr. Smith has worked as a private consultant in the broadband industry since January 2005. From January 2000 to December 2004, he served as Corporate Vice President and Director of Business Development, Broadband Communications Sector of Motorola, Inc., a global communications company providing seamless mobility products and solutions across broadband, embedded systems and wireless networks. From 1983 to 2000, Mr. Smith held various executive positions with General Instrument Corporation, including Executive Vice President from 1998 to 2000, and Vice President, Taxes as well as Corporate Treasurer from 1991 to 1997. Mr. Smith currently serves on the Management Committee of Music Choice, a provider of music programming through digital cable and satellite TV systems, as well as the Internet.

CommScope is a world leader in the design and manufacture of 'last mile' cable and connectivity solutions for communication networks. Through our SYSTIMAX® Solutions and Uniprise(TM) brands we are the global leader in structured cabling systems for business enterprise applications. We are also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial (HFC) applications. Backed by strong research and development, CommScope combines technical expertise and proprietary technology with global manufacturing capability to provide customers with high-performance wired or wireless cabling solutions. www.commscope.com

What's New @ NECA?

03-25-05 -- NECA, BICSI Begin Updating Joint Telecom Standard

03-28-05 -- Work has begun on the second edition of NECA/BICSI 568, Standard for Installing Commercial Building Telecommunication Cabling (ANSI). Publication of the updated standard is expected in spring of 2006.

Jointly developed by NECA and BICSI, the standard has been widely used by specifiers and customers as a guide to installing voice-date-video data networking systems. The current edition, NECA/BICSI 568-2001, is referenced three places in the 2005 National Electrical Code as a guide to quality installation practices for optical fiber cable and raceways, communications cabling and broadband cabling.

BICSI, the association for telecom installers, is best known for its RCDD (Registered Communications Distribution Designer) designation. NECA publishes a series of ANSI-approved construction practices known as the National Electrical Installation Standards (NEIS)®. NECA/BICSI 568 is one publication in the NEIS series.

Robert Jensen of Fluke Networks is chairing the joint standards project. "NECA/BICSI-568 is used in nearly all commercial building cabling specifications where safety and performance are paramount, so it's crucial that we keep the standard current," he observes. "It's time to update this one with the latest installation techniques for Category 6 cabling and laser-optimized fiber, as well as the safety requirements of the 2005 National Electrical Code."

NECA develops joint National Electrical Installation Standards with eight other expert groups, including The Aluminum Association, BICSI, Electrical Generating Systems Association (EGSA), Fiber Optic Association (FOA), Illuminating Engineering Society of North America (IESNA), National Electrical Manufacturers Association (NEMA), National Armored Cable Manufacturers Association (NACMA), and the Steel Tube Institute (STI). www.necanet.org

General Cable Issues An Important Look At The State Of The Cabling Industry

RISK FACTORS

Investing in our securities involves a high degree of risk. You should carefully consider the following risk factors and other information contained herein before investing in our securities.

Risks Relating to Our Markets

Our net sales, net income and growth depend largely on the economies in the geographic markets that we serve and if these markets become weaker we could suffer decreased sales and net income.

Many of our customers use our products as components in their own products or in projects undertaken for their customers. Our ability to sell our products is largely dependent on general economic conditions, including how much our customers and end-users spend on information technology, new construction and building, maintaining or reconfiguring their communications network, industrial manufacturing assets and power transmission and distribution infrastructures. Over the past few years many companies have significantly reduced their capital equipment and information technology budgets, and construction activity that necessitates the building or modification of communication networks and power transmission and distribution infrastructures has slowed considerably as a result of a weakening of the U.S. and foreign economies. As a result, our net sales and financial results declined significantly in recent years. In 2004, we have seen an improvement in these markets; however, if they were to weaken, we could suffer decreased sales and net income and we could be required to effect further restructurings.

The markets for our products are highly competitive and if we fail to invest in product development, productivity improvements and customer service and support, the sale of our products could be adversely affected.

The markets for copper, aluminum and fiber optic wire and cable products are highly competitive, and some of our competitors may have greater financial resources than we do. We compete with at least one major competitor with respect to each of our business segments, although no single competitor competes with us across the entire spectrum of our product lines. Many of our products are made to common specifications and therefore may be fungible with competitors’ products. Accordingly, we are subject to competition in many markets on the basis of price, delivery time, customer service and our ability to meet specific customer needs.

We believe our competitors will continue to improve the design and performance of their products and to introduce new products with competitive price and performance characteristics. We expect that we will be required to continue to invest in product development, productivity improvements and customer service and support in order to compete in our markets. Furthermore, an increase in imports of products competitive with our products could adversely affect our sales.

Our business is subject to the economic and political risks of maintaining facilities and selling products in foreign countries.

During 2004, approximately 34% of our sales and approximately 41% of our assets were in markets outside North America. Our operations outside North America generated approximately $48.1 million of our cash flows from operations while the North American operations used $35.6 million of cash flows from operations. Our financial results may be adversely affected by significant fluctuations in the value of the U.S. dollar against foreign currencies or by the enactment of exchange controls or foreign governmental or regulatory restrictions on the transfer of funds. In addition, negative tax consequences relating to repatriating certain foreign currencies, particularly cash generated by our operations in Spain, may adversely affect our cash flows. The American Jobs Creation Act of 2004 provides that US corporations can repatriate earnings of foreign subsidiaries at a reduced tax rate under certain circumstances. As of December 31, 2004 the undistributed earnings of foreign subsidiaries that are considered to be indefinitely reinvested are approximately $135 million. We are currently in the process of evaluating how much, if any, of these foreign earnings will be repatriated. We will determine the sources and amounts, if any, of the foreign earnings repatriation and the related tax expense prior to December 31, 2005. Furthermore, our foreign operations are subject to risks inherent in maintaining operations abroad, such as economic and political destabilization, international conflicts, restrictive actions by foreign governments, nationalizations, changes in regulatory requirements, the difficulty of effectively managing diverse global operations and adverse foreign tax laws. Changes in industry standards and regulatory requirements may adversely affect our business.

As a manufacturer and distributor of wire and cable products we are subject to a number of industry standard-setting authorities, such as Underwriters Laboratories, the Telecommunications Industry Association, the Electronics Industries Association and the Canadian Standards Association. In addition, many of our products are subject to the requirements of federal, state and local or foreign regulatory authorities. Changes in the standards and requirements imposed by such authorities could have an adverse effect on us. In the event we are unable to meet any such standards when adopted our business could be adversely affected. In addition, changes in the legislative environment could affect the growth and other aspects of important markets served by us. While certain legislative bills and regulatory rulings are being considered in the energy and telecommunications sectors which could improve our markets, any delay or failure to pass such legislation and regulatory rulings could adversely affect our opportunities and anticipated prospects may not arise. It is not possible at this time to predict the impact that any such legislation or regulation or failure to enact any such legislation or regulation, or other changes in laws or industry standards that may be adopted in the future, could have on our financial results, cash flows or financial position.

Advancing technologies, such as fiber optic and wireless technologies, may make some of our products less competitive.

Technological developments could have a material adverse effect on our business. For example, a significant decrease in the cost and complexity of installation of fiber optic systems or an increase in the cost of copper-based systems could make fiber optic systems superior on a price performance basis to copper systems and may have a material adverse effect on our business. While we do manufacture and sell fiber optic cables, any erosion of our sales of copper cables due to increased market demand for fiber optic cables would most likely not be offset by an increase in sales of our fiber optic cables. Also, advancing wireless technologies, as they relate to network and communication systems, may represent an alternative to certain copper cables we manufacture and reduce customer demand for premise wiring. If wireless technology were to significantly erode the markets for copper-based systems, our sales of copper premise cables could face downward pressure.

Risks Relating to Our Operations

Volatility in the price of copper and other raw materials, as well as fuel and energy, could adversely affect our businesses.

The costs of copper and aluminum, the most significant raw materials we use, have been subject to considerable volatility over the years. Volatility in the price of copper, aluminum, polyethylene and other raw materials, as well as fuel, natural gas and energy, will in turn lead to significant fluctuations in our cost of sales. Additionally, sharp increases in the price of copper can also reduce demand if customers decide to defer their purchases of copper wire and cable products or seek to purchase substitute products. Moreover, we do not engage in activities to hedge the underlying value of our copper and aluminum inventory. Although we attempt to reflect copper and other raw material price changes in the sale price of our products, there is no assurance that we can do so.

Interruptions of supplies from our key suppliers may affect our results of operations and financial performance.

Interruptions of supplies from our key suppliers could disrupt production or impact our ability to increase production and sales. During 2003, our copper rod mill plant produced approximately 62% of the copper rod used in our North American operations and two suppliers provided an aggregate of approximately 68% of our North American copper purchases. During the second quarter of 2004, the Company´s rod mill facility ceased operations. All copper rod used in our North American operations is now externally sourced; our largest supplier of copper accounted for 48% of our North American purchases in 2004. Any unanticipated problems with our copper rod suppliers could have a material adverse effect on our business. Additionally, we use a limited number of sources for most of the other raw materials that we do not produce. We do not have long-term or volume purchase agreements with most of our suppliers, and may have limited options in the short-term for alternative supply if these suppliers fail for any reason, including their business failure or financial difficulties, to continue the supply of materials or components. Moreover, identifying and accessing alternative sources may increase our costs.

Failure to negotiate extensions of our labor agreements as they expire may result in a disruption of our operations.

Approximately 60% of our employees are represented by various labor unions. During the last five years, we have experienced only two strikes, which were settled on satisfactory terms. Labor agreements expire at three facilities in 2005. We cannot predict what issues may be raised by the collective bargaining units representing our employees and, if raised, whether negotiations concerning such issues will be successfully concluded. A protracted work stoppage could result in a disruption of our operations which could adversely affect our ability to deliver certain products and our financial results. On March 21, 2005, union workers at the Company´s Lincoln, Rhode Island manufacturing facility commenced a strike. As of the date of this filing, the parties had not reached agreement on a new contract and therefore the union workers remained on strike. Both parties are continuing to work together to reach a new contract. The Company does not expect that the strike will have a significant impact on its financial results for the first quarter of 2005.

Our inability to continue to achieve productivity improvements may result in increased costs.

Part of our business strategy is to increase our profitability by lowering costs through improving our processes and productivity. In the event we are unable to continue to implement measures improving our manufacturing techniques and processes, we may not achieve desired efficiency or productivity levels and our manufacturing costs may increase. In addition, productivity increases are related in part to factory utilization rates. Our decreased utilization rates over the past few years have adversely impacted productivity.

We are substantially dependent upon distributors and retailers for non-exclusive sales of our products and they could cease purchasing our products at any time.

During 2004, approximately 35% of our domestic net sales were to independent distributors and three of our ten largest customers were distributors. Distributors accounted for a substantial portion of sales of our communications products and industrial & specialty products. During 2004, approximately 12% of our domestic net sales were to retailers and the two largest retailers, The Home Depot and AutoZone, accounted for approximately 2.7% and 2.2%, respectively, of our net sales.

These distributors and retailers are not contractually obligated to carry our product lines exclusively or for any period of time. Therefore, these distributors and retailers may purchase products that compete with our products or cease purchasing our products at any time. The loss of one or more large distributors or retailers could have a material adverse effect on our ability to bring our products to end-users and on our results of operations. Moreover, a downturn in the business of one or more large distributors or retailers could adversely affect our sales and could create significant credit exposure.

We face pricing pressures in each of our markets that could adversely affect our results of operations and financial performance.

We face pricing pressures in each of our markets as a result of significant competition or over-capacity, and price levels for most of our products have declined over the past few years. While we will work toward reducing our costs to respond to the pricing pressures that may continue, we may not be able to achieve proportionate reductions in costs. As a result of overcapacity and economic and industry downturn in the communications and industrial markets in particular, pricing pressures increased in 2002 and 2003. While we were generally successful in raising prices to recover increased raw material costs, pricing pressures continued into 2004, and are expected for the foreseeable future. Further declines in prices, without offsetting cost-reductions, would adversely affect our financial results.

Other Risks Relating to Our Business

Our substantial debt could adversely affect our business. We have a significant amount of debt. As of December 31, 2004, we had $374.9 million of debt outstanding, $89.9 million of which is secured indebtedness and none of which is subordinated to our senior notes, and had $126.0 million of additional borrowing capacity available under our senior secured revolving credit facility. In addition, subject to the terms of the indenture governing our senior notes, we may also incur additional indebtedness, including secured debt, in the future.

The degree to which we are leveraged could have important adverse consequences to us. For example, it could:

• make it difficult for us to make payments on or otherwise satisfy our obligations with respect to our indebtedness;
  


• limit our ability to borrow additional amounts for working capital, capital expenditures, potential acquisition opportunities and other purposes;
  


• limit our ability to withstand competitive pressures and reduce our flexibility in responding to changing business, regulatory and economic conditions in our industry;
  


• place us at a competitive disadvantage against our less leveraged competitors;
  


• subject us to increased costs, to the extent of the portion of our indebtedness that is subject to floating interest rates and;
  


• cause us to fail to comply with applicable debt covenants and could result in an event of default that could result in all of our indebtedness being immediately due and payable.