In this June issue of the Argox newsletter we discuss implementing RoHS and our commitment to the environment. Also reviewed is our April road show to Brazil. The Story of Argox continues as we discuss the company's development of portable data terminals and outlook for the future.

Argox began preparing for RoHS compliance in August 2004. Our designated RoHS task force consisted of 20 staff including personnel from QA, product management, R&D, product engineering, and product logistics. This group consulted with 235 suppliers and reviewed over 2,000 parts to ensure Argox printers, scanners, and portable data terminals were in full compliance with RoHS. More than 75 weekly meetings were held to meet the phase-in schedule for the June 1, 2006 compliance date.

Argox is committed to protecting the environment. We will maintain a policy of working together with our suppliers to reduce hazardous materials in our manufacturing processes, components, and products. At Argox preserving the environment has become a priority and we are currently identifying and implementing ways to limit our company's impact on the environment. We believe that a green world is a better world for everyone.

In Brazil, our sales team met with local distributors as well as a dealer who had flown in from Columbia. The team demoed new products and provided technical updates and sales training. Their goal was to highlight the flexibility of Argox products and give customers more ideas for product applications. Our sales team also offered new engineers an orientation on printer specs, use, and applications.

During this trip our team featured the PT-10 and PT-12 portable data terminals. After seeing a demo first-hand, some distributors were quite impressed and asked for samples and trial orders.

After ten days in Brazil, the road show concluded with success. Our sales team let partners know that Argox is there to support them, and left with several orders in hand. We look forward to returning to Brazil soon and helping our partners as they expand their business.

Until recently, Argox kept a low profile for its PDC business. A PDC is a relatively
complex product and at the beginning the learning curve was not entirely smooth.

In 2004 Argox started selling its first generation PDCs, the PT-10 and PT-12, for field trials in China. The resulting market feedback was lukewarm. Argox VP of Sales and Marketing Perry Ho studied the response and the reasons that these PDCs were not generating sales revenues. He found that:

To address these problems, Argox decided to take a half year to review and boost the development of the PDC product line. In 2005, after improving and repositioning PDC products, Argox began promoting them through sales channels. Fortunately, PT-10 and PT-12 sales experienced rapid growth. This encouraged Argox to develop PDC products further, and so far the outlook is very positive.

In 2006, PDCs are a hot product and Argox has made a substantial investment in expanding this product line. In addition to current products, four new PDCs are under development including a wireless solution and a Windows-based solution. Stay tuned for further news on Argox PDCs, it looks like this will be another booming business.