Plastic Resins. The primary raw materials used by the Company in the manufacture of its plastic parts are various plastic resins, mostly ABS (acrylonitrile-butadiene-styrene). Because plastic resins are commodity products, the Company selects its suppliers mainly based on price. The Company currently obtains its plastic resins from suppliers in Hong Kong, Japan and Taiwan and normally maintains a three to four month inventory supply.

The Company uses in excess of 9,600,000 pounds of plastic resins annually. Management believes that the Company's large volume purchases of plastic resin have generally resulted in lower raw material costs per unit and generally has enabled the Company to obtain adequate shipments of raw materials.

Component Parts and Supplies. The Company purchases over 500 different component parts from more than 100 suppliers and is not dependent upon any single supplier for any essential component. The Company purchases from suppliers in Japan, Taiwan, Korea, Hong Kong and elsewhere.

Raw Metal. The primary materials used by the Company in metal molds and parts manufacturing vary, but purchases of raw metal were immaterial to the Company's total operations during the year. Typically the Company buys metals from a variety of suppliers in Hong Kong and China and has no long-term contracts with metal suppliers.