November 22, 2004

To Our Valued Thermal Flex Customers:

We are pleased to inform you that effective November 1, 2004, TACNA International Corporation (TACNA), acquired all of Thermal Flex, Inc’s operating assets. The acquired operations will be known as Thermal Flex, a Division of TACNA International Corporation.

Since January 21, 2004, TACNA has been operating the Thermal Flex business through an agreement with Thermal Flex, Inc and its secured lender. Under TACNA’s operational control Thermal Flex turned its full attention to “Quality Products—On Time Delivery”. The focus on quality and delivery coupled with a return of the customer service function to the manufacturing facility has resulted in shorter lead times and increased customer satisfaction.

Thermal Flex is also pleased to announce the addition of three manufacturing representatives that will be providing support to its customers in the Midwestern and eastern states. Thermal Flex intends to add additional manufacturing representatives in other key markets over the next few months.

With the acquisition behind us, the availability of working capital and the expanded sales force through qualified manufactures representatives, we are confident we will be a stronger and better organization walking our talk of “Quality Products—On time delivery. We look forward to serving you for many years to come.

If you have comments or suggestions, please feel free to contact any of the individuals below:

Rob Rosi, President (619) 661-1261
Ross Baldwin, Chief Operating Officer, (619) 661-1261
Bob Lupoli, General Manager (619) 662-3910 Ext. 6450
Customer Service (619) 662-3910 Ext. 6405
Visit our web site at www.thermalflex.com

Sincerely,
Rob Rosi,
President,
TACNA International Corporation

For Immediate Release:

SAN DIEGO—(Business Wire)—November 22, 2004—The TACNA International Corporation (TACNA), a Mexico manufacturer of industrial and electronic products, announced today that it has acquired the assets of Thermal Flex Inc (Thermal Flex), a maker of silicone hose products. TACNA had been running the Thermal Flex operation since January 2004 under a temporary operating agreement. The acquired operation will be known as Thermal Flex, a Division of TACNA International Corporation. Thermal Flex will continue to serve the global silicone hose market primarily in the high performance vehicles, transportation, industrial and medical hose market segments.

“The operating agreement has allowed us become familiar with the industry, solidify the customer base and continue to provide consistent employment to approximately 65 employees who would otherwise have had lost their jobs. With the acquisition behind us we are prepared to invest the capital necessary to expand the business” said Rob Rosi, President and CEO of TACNA.

“In this transition period we have learned how to ‘Walk Our Talk.’ Our commitment has been and will be ‘Quality Silicone Hose--On Time’ in the immediate and long-term future,” said Ross Baldwin, TACNA’s Chief Operating Officer.

Thermal Flex is expanding its presence in the market with the addition of manufacturer’s representatives in various upper Midwest and some New England states with additional representatives to be added in other key markets over the next few months.

Bob Lupoli, Global Sales Manager stated, “TACNA’s taking over the operations, has given me the confidence to make commitments to our customers that I know the entire organization stands behind. We have never been better at living up to our commitments than we are today.”

Manufacturing facilities are located in Mexico with sales offices in California.

About the TACNA Group

The TACNA Group includes TACNA International Corporation and TACNA Services Inc. TACNA International is ISO 9002 certified and manufactures products for the electronics industry including producing power distribution units and magnetics components such as transformers. Along with production of its proprietary products TACNA International performs contract manufacturing, contract assembly and contract packaging services for clients in a wide variety of industries within its production facilities in the Baja border region of Mexico. TACNA International has approximately 250 employees.

TANCA Services, Inc. is a provider of turnkey Mexico border region manufacturing capabilities complete with facilities, employees, operating permits, accounting and other administrative services. Such services are sometimes referred to as “shelter services”. TACNA Services minimizes the complexities of cross border business for its clients. It has clients in industries from biotech to basic manufacturing. TACNA Services has approximately 750 employees.

About Thermal Flex

Thermal Flex has been in business for almost four years. It is a global provider of innovative silicone hose products for use in automotive, marine, aerospace, food processing and medical applications. Many of its products are custom made to specific and unique user requirements. Its manufacturing operations are located in Baja, Mexico.

For additional information about the company, visit our web sites at www.tacna.net, www.tacnamagetics.com and www.thermalflex.com.

Contacts:
Rob Rosi, President or Ross Baldwin, Chief Operating Officer, Telephone 619-661-1261