EH bans eBay auctions!!

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March 21, 2008

Subject: Elimination of eBay and other 'auction' site sales of EH effects

Dear Electro-Harmonix Dealer,

As we begin the spring season, our team at EH would first and foremost like to thank you for your continued support of our lines throughout the years. We look forward to working with you to make 2008 the most successful year yet for Electro-Harmonix effects.

We have decided to ELIMINATE all eBay and other 'auction' site sales of Electro-Harmonix pedals. A moratorium on eBay sales will result in a more stable price structure for the consumer and, most importantly, fair and stable margins for our dealers. We also intend to eliminate third party sellers who slash prices and undermine sales for legitimate authorized dealers.

We ask that all dealers complete or remove all eBay transactions of any EH effects by no later than Wednesday, April 30th, 2008. We will be monitoring eBay listings worldwide to ensure compliance.

We are pleased with the dealer responses we have already received.

Mike Matthews