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Friday, October 17, 2003
Memorex to increase CD-R pricing


Due to supply shortages, rising costs from overseas disc manufacturers and the stringent enforcement of patent royalties, Memorex is forced to increase CD-R and CD-RW media prices 10 to 15 percent beginning January 2004.

Manufacturing costs have increased 35 percent this year due to patent royalty fees, rising production costs for petroleum-based plastics used to make optical media, as well as transportation costs to deliver products to warehouse and retail facilities.

"Due to our prime disc manufacturers' focus towards DVD discs and a lack of investment in new CD-R and CD-RW production facilities, production capacities can no longer meet consumer demand for CD media, and this trend is expected to continue into next year," said Michael Golacinski, president and CEO.

"We have no alternative but to pass on the increase in cost to our retailers now in order to maintain our commitment to deliver high quality blank media that both our consumers and retailers have learned to trust and depend upon."


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