Letter to Our Customers

Date: April 29, 2011


Due to the rising cost in fuel, KAB has implemented a new fuel surcharge to its current rate structure.

To our valued customer:

As a privately owned company, we understand the need to keep costs down while operating efficiently. We constantly search for ways to maximize the value our services provide. From time to time, however, it is necessary to adjust our service rates to compensate for increases in expenses.

An example of this which is readily apparent is the increase in fuel costs. Over the past few years we have seen the price of fuel jump significantly. This increase has come to the point that it is no longer absorbable into our current rate structure. After careful review of industry practices, we have decided that the best way to handle this excessive cost is to impose a fuel surcharge on our services. This surcharge will begin with this month’s billing. The transportation industry has widely used fuel surcharges to help compensate for the added expense. We will use a calculation based on the monthly retail averages published by the Energy Information Administration of the U. S. Department of Energy (“EIA/DOE”). This report is publicly available through the EIA/DOE website. This index is objective and is widely recognized in the trucking and transportation industries. Our calculations will be based on the Eastern Regional statistics for On-Highway Gasoline. We will use the calculated average for the previous month as the base for the surcharge. If the average decreases, the surcharge will also decrease. An example of this surcharge would be to calculate a percentage of the professional services total.

Fuel is not the only cost that has risen dramatically. Due to the recent disaster in Japan, we have seen an increase in the cost of parts and equipment, as well as a delay in manufacturing. Even though many manufacturers have restructured their business, the overall cost of their product has risen a noticeable amount. You may have already noticed these higher costs in the everyday items you purchase. We will continue to adjust the cost of these goods based on the current market.

Certain commodities have a below surface impact on expenses as well. Increases in petroleum prices have an impact on many of our suppliers that have petroleum based products. Increases in steel, copper, and other metals have increased the cost of wire and cable products globally.

At KAB Computer Services we strive to provide the best service at a reasonable cost. We also strive to maintain the level of professional service you have come to expect. We have a way for you to balance these increases. Our referral program allows commercial accounts a discount for one month’s regular service charges up to $100.00. The new customer must mention your name and business when signing up for service with us. Restrictions and conditions apply.

We value your business and look forward to continued opportunities to meet and exceed your technology needs.

Thank You,

Kenneth A. Bruno

KAB Computer Services