Federal Tire plans to increase prices by 5%-8% across its full line of tires, effective April 1, 2006. The increase applies to Federal and Hero branded tires. Rocketing prices of raw materials such as natural rubber, carbon black and other petroleum products and higher transportation costs all contribute to the price increase. The present price increase does not fully reflect Federal’s increase in cost and Federal is doing its best to absorb as much of it as possible. Presently, we do not foresee any decrease in raw material costs, and will continue to closely monitor these costs to determine if any further price adjustments are necessary.