James M. Elliot, Chief Executive Officer and Chairman of the Board, recognizes the
gravity of the problem. If Byte Products cannot continue to manufacture components in
sufficient numbers to meet the demand, buyers will go elsewhere. Worse yet is the possibility
that any continued lack of supply will encourage others to enter the market. As a long-term
solution to this problem, the Board of Directors unanimously authorized the construction of a
new, state-of-the-art manufacturing facility in the southwestern United States. When the planned
capacity of this plant is added to that of the three current plants, Byte should be able to meet
demand for many years to come. Unfortunately, an estimated three years will be required to
complete the plant and bring it online.