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AccessSwitch Product Discontinuation Announcement: Provisions for Continued Support

Dear Initia Reseller,

Effective December 31, 2008, Initia will no longer be able to accept orders for the AccessSwitch product family. The manufacturing and production of the AccessSwitch products will cease on September 30, 2008. Initia will continue to support the product line into the unforeseeable future. Initia thanks you for all of business over the past eight years and is committed to working with you towards a successful transition.

The AccessSwith product line includes the following:

Delivery Schedule

All orders will be shipped within 30 days ARO (at receipt of order). Quantities will be delivered on first-order basis, and will be subject to available inventory. Initia reserves the right to extend this lead-time as circumstances warrant.

Pricing Schedule

The applicable unit sales price for purchase will be as follows:

• All Resellers will receive an additional 20% off current reseller pricing
• All outstanding quotes and discounts will be honored up to the expiration date of the quote.
• Request for additional volume discounts will be considered on a case by case basis, please contact Tina Applegate (tapplegate@initiainc.com or 732-413-6042)

Warranty

All discontinued product orders subject to this notice shall carry Initia standard limited warranty conditions as contained in the Initia, Inc. NA Price Book. Initia will accept all valid warranty claims for credit only, unless a replacement order is agreed upon by Initia and can be manufactured or delivered from remaining available inventory.

Except as stated above, the applicable terms and conditions of sale for these discontinued commercial products will be the unmodified provisions in the Initia, Inc. VAR Agreement.

Initia accepts no liability for any special, incidental, or consequential damages associated with its products or with the final manufacture related to the commercial products covered by this notice or from Initia's performance against any last time buy orders.

Software

After January 1 2009, additional copies of software can be ordered through York Telecom. Please contact the order administration department at 732-413-6042.

Service

Initia will still offer Product Service & Support contracts. Requests for Service Quotes or Information should be sent to Ana Santos, asantos@initiainc.com or 732-413-6043.

This letter is currently being sent to all AccessSwitch resellers. A second letter will also be sent to all end customers in the upcoming weeks.

Once again, we sincerely thank you for your business. Please feel free to contact us directly at 732-413-6042 should you wish to discuss this matter further.

Regards,

Ron Gaboury
President
York Telecom & Initia, Inc.