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We are a manufacturer of silicon carbide diesel filters that
supplies a number of manufacturers of verified Tier 3 systems in
California. 

This year we invested over $1 million in equipment to provide
additional filters at the request of our customers to serve a
rapidly increasing market. Over the last few weeks we have seen a
dramatic drop in business and have had to reduce our staff.  We
have been told the drop is due to the ARB changing and delaying its
diesel rules and not having any new rules, or funding in place. 

The result to us is that we have invested in a market that is very
uncertain now and we have no way of knowing when the market will
turn around. 

We have heavily invested in the diesel retrofit market, primarily
based on rules set forth by ARB, rules that have been delayed
before but now are in flux. Potential buyers apparently are waiting
to see if they need to do anything at all and I expect they will
continue to wait till rules are in place or till funding guidelines
are clear. Until that happens we expect to be scrambling. I realize
ARB has many stakeholders to satisfy but I can't help feel that our
industry is the only one being left out on a limb to fend for
itself.