November 1, 2007

Dear Valued Customer,

I am excited to share with you an important change that has recently taken place in the
power protection industry. APC has been purchased by Schneider Electric. Due to APC's overwhelming popularity, legislators approving the purchase of APC by Schneider Electric have requested that MGE UPS Systems, also a Schneider Electric company, wholly divest its small single phase UPS business (0-10kva). This divested business was recently purchased by Eaton Powerware©.

As a result, the new Critical Power and Cooling Services division of Schneider Electric will be composed of all aspects of the award-winning APC line, from surge protection up to our InfraStruXure® architecture, and will be joined by the >10kVA UPS solutions from MGE UPS Systems, which have set unparalleled standards for performance and reliability. The broadest power line in the industry will also now benefit from thousands of additional Field Service Engineers, giving you and your customers even more peace of mind.

It is important to understand that Eaton is licensed to continue to use the MGE Office Protection Systems brand mark in conjunction with the purchase for a period of time going forward. However, there is no link between the MGE-branded offerings from APC and the MGE Office Protection Systems offerings from Eaton. There are no technologies, relationships or alliances between either of the two entities, and they continue to compete in the market.

As an APC or MGE large UPS customer, you will enjoy a whole new world of opportunity. By staying with APC-MGE, or trying our award winning single-phase product lines for the first time, you will be able to take advantage of the industry’s most comprehensive power protection technologies, from 3-phase data centers, to racks, PDUs, cooling systems, and mobile power solutions.

The benefits extend beyond leading quality and widest selection. You can participate in premium programs like Trade-UPS®. With Trade-UPS, you can trade in your aging UPS’s, any brand, in any condition, for a state-of-the-art UPS from APC-MGE, and benefit from up to a 35% discount. Information on Trade-UPS and other exciting promotions and products is available at www.apc.com.

In the midst of all these changes, one thing remains the same: we value your business and hope you continue to challenge us with your views on how to better serve you in the future. Millions of customers continue to put their faith in the quality and performance of APC and MGE's best-selling UPS technologies; and we hope you do as well. Backed by the assets and support of the 120,000 employees of Schneider Electric, together we can enjoy a bright future of innovation, efficiency, and unparalleled performance.

Thank you.

Yours sincerely,


Aaron L Davis

Chief Marketing Officer

P.S. To learn more about APC-MGE's products and Trade-UPS program visit www.apc.com.