NEW PRODUCTS

We are in the process of upgrading our total line of battery operated watchwinders to a new higher level, employing high-energy lithium batteries to replace the standard alkaline batteries now used.

I am sure you are aware that batteries with Lithium chemistry are coming into wide usage in computers and other battery operated appliances and extending up into huge Lithium batteries for electric cars. The technology changes in this area are rapid and impressive and, as leaders in watchwinder technology, we have decided that Orbita should move forward in the same direction.

By early 2009 all of our Sparta series, and some of our programmable units, will be supplied with Lithium batteries direct from the factory. We have contracted with a huge international company that produces tens of thousands of these batteries each week and have committed for 20,000 Lithium batteries for use in 2009. These batteries will be ORBITA branded. We will stock these batteries and install them in our winders when we ship them and will also offer replacement batteries downstream, hopefully after 5 or more years.

This change-over has a profound impact on our present designs for battery holders and circuit boards. Here is what is going to happen in each of these two areas:

1. Battery Holders - All present battery holders will be obsolete in due course. The replacement battery holders will be wired differently and we will substitute yellow wires instead of red wires to indicate the positive lead. The reason for this is simple: The new lithium batteries have an output of 3.6 VDC rather than 1.5 VDC so now the 2 batteries will be connected in parallel to provide 3.6 VDC whereas the predecessors were connected in series to provide 3.0 VDC.

2. Circuit Boards - Virtually all of the circuit boards we currently employ will be obsoleted or modified and reprogrammed for the higher voltage. For example, boards that are currently 3.0 VDC boards would run 20% faster when provided with 3.6 VDC input. This would increase Turns Per Day by 20% as well, and that is not satisfactory. The same applies to Lithium cells in series which would now output 7.2 VDC instead of 6.0 VDC. Clearly the circuit boards must be changed.

All in all, this will be a daunting task but we will end up being the only watchwinder producer anywhere that can, and will, offer a 5-year battery life guarantee. That should certainly be a selling point worthy of note!!