Lennox 13 Seer Units

Lennox Dealer Network
Re: Industry changes

Dear Valued Customer:

I wanted to provide you with a letter to update you on some of the changes that Lennox is making in 2005 to prepare for the 13 SEER mandate on manufacturing that will occur on Janauary 23, 2006. As you know, the transition to 13 SEER has already begun. Lennox introduced this past Spring 2 additional air conditioning and heat pump models. The XC-21, XP-19, HSX-16, and HPX-16 which represent Lennox' commitment to product innovation that you have seen with the heritage of the Lennox product offering.

If you recall the dealer meeting in Chicago or the local meetings that we conducted, we discussed other product introductions this Fall to prepare you for 2006. 1 am pleased to announce the 13 ACD Merit Air Conditioning unit will be available in mid-September. The product has R-22 refrigerant and is designed for the new construction market. Also, in mid-September Lennox will introduce the XC-13 Elite Air Conditioning line. The product will have R-41OA refrigerant as noted with the "X" in the nomenclature and has been designed for the replacement market. The XC-13 will be the first A/C that will be in the new Elite style cabinet. Finally, when brand name is not important, a 13 Seer Aire-Flo product will be introduced at the end of September.

With product introductions, one would expect products to be discontinued. The HS(P)-27 will end production at the end of August. The HS(P)-26 will stop production at the end of October, but inventory levels should take us into December. The 12 SEER Aire-Flo will end production in September with 'the introduction of the 13 SEER Aire-Flo.

As you have seen, Lennox is ahead of the curve with the product introductions making you better prepared with a full product line before the mandate comes down. Lennox has both R-22 and R-41Oa products to meet any and all requests from your customers. Lennox is ready for the future to provide you with innovative products that give you a competitive advantage. Do all manufacturers offer R-410a? Do they have a fall product line of R-22 and R-410a equipment, now? Are all manufacturers ready with the product that they will have for the long term?

ARI just ruled that they will not rate and publish any product that cannot meet 13 SEER alone. It is against policy to have a 12 SEER outdoor unit. For example, any manufacturer that was hoping to meet the minimum with a variable speed product is not allowed to do so. Lennox' new outdoor units hit 13 SEER across the board without variable speed motors or special indoor coils.