Good afternoon. My name is Keara, and I will be your conference operator today. At this time, I would like to welcome everyone to the Regal Beloit second quarter earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator instructions) Thank you. I would now like to turn the conference over to your host, Mr. David Barta, Chief Financial Officer. Sir, you may begin.

Before turning the call over to Henry, I would like to remind you that the statements made in this conference call that are not historical in nature are forward-looking statements. Forward-looking statements are not guarantees since there are inherent difficulties in predicting future results and actual results could differ materially from those expressed or implied in forward-looking statements. For a list of those factors that could cause actual results to differ materially from projected results, please refer to today's earnings release and our filings with the SEC. Now I will turn the call over to Henry.

Thanks, Dave, and thank you everyone for joining us in this call and for your interest in Regal Beloit. We will follow our normal agenda. I will make some opening comments. Dave will cover the financial aspects of the quarter. Mark will give you some color on products, markets, and operations, and then I'll talk a little bit about the third quarter and take questions. First of all, let me just say that we are extremely pleased to announce yet another record quarter in spite of the strong headwinds in the residential HVAC market and the unprecedented rise in raw material cost. Our largest market, residential HVAC was down approximately 12% for the quarter. We fared better than the markets due to our first mover advantage and continued success in introducing high efficiency and more intelligent products. Mike will share more on that in a moment. Concerning materials, steel has doubled since the beginning of the year. Copper continues to escalate and energy costs in general are up across the board. While we continue to head some of our commodity exposure such as with copper, we have been forced to replace lower priced hedges with higher priced hedges. We have raised prices in all product lines, but the reality is that with the combination of timing and a difficult HVAC market, we were still on deficit for the quarter as we projected. We will continue to closely monitor the situation and we will continue to act prudently and decisively to manage our margins going forward. Fortunately, we are benefiting from strong tailwinds as well. Our industrial motor, power generation and industrial businesses, our international businesses have all remained strong. Our acquisitions since 2007 continue to be accretive to our financial performance and importantly have added strategic value as we have…

All right. I’d like to review the results for the second quarter, then we’ll discuss the outlook for the third quarter. This morning’s release, if you didn’t see it, you can find it on our website. The sales for the second quarter were $606.3 million, which is a 31.9% increase as compared to the second quarter of 2007. Included in our sales results are those results for the five acquisitions completed over the prior year, which totaled $131.8 million. The impact of foreign currency also added about 2.3% to our total sales growth as well. In electrical segment, sales were $548.9 million, an increase of 36.3% versus the second quarter of 2007 and includes the impact of the acquired businesses, which all roll up in the segment. Segment growth in electrical segment was paced by the power generation business that experienced 40.2% year-over-year growth, as we continue to see strong worldwide demand for our generator products. Commercial and industrial motor sales in North America increased 4.6%, which compares to a 1.4% increase in the first quarter of this year. Sales for the HVAC business, as Henry mentioned, served much better than the overall market as a result of the improved mix of high efficiency products. Sales for the business, however, were still down 3.6%. Sales in mechanical segment increased 0.6%. I should add that we did re-class approximately $2.9 million of sales from the electrical group to the mechanical group for the second quarter of 2007 as a result of transfer of certain product sales to the mechanical segment from the electrical segment. From a geographic perspective, our sales outside the U.S. were 27% of total sales versus 22.8% for the second quarter of 2007. Actually in the acquired sales we saw pretty good sales growth throughout the world. In…

Thanks, Dave. During the second quarter we continued to see growth in segments not tied to the residential housing market, most notably increased demand in our global generator business. In spite of both the unprecedented inflationary environment and the difficult housing segment, the majority of businesses continue to perform well. And we are very pleased with the execution of our team. During the quarter we saw sales growth in our commercial and industrial motor businesses up 4% and very strong growth in our global generator businesses, up 40%. We saw strength in our generator business, both in China and in North America. In China the robust demand was driven by the devastating earthquake that hit China earlier in the year causing a strong increase in demand for emergency power. That increase in demand was on top of the surge in demand we saw in the first quarter, which was driven by the severe snowstorms. We expect to see continued strong demand in China well into the third quarter. Our North American generator business also delivered solid growth during the quarter, driven by three primarily factors. First, we are seeing an increase in demand from the U.S. Department of Defense where our generators are being used to provide power for military operations. Second, we are seeing an increase in the demand for the new generators we launched last year for the rail industry. These generators are being used to power refurbished locomotive to ensure they meet more stringent air emissions regulation. The third factor impacting our North American generator demand was an increase in export sales. These three positive trends supported our second quarter North American generator sales and are expected to continue into the third quarter as well. In HVAC, our sales were down a modest 3.6% for the quarter.…

Thanks, Mark. Taking a look at the quarter ahead, we believe that we will achieve another record quarter. It will look much the same as the second quarter with the similar headwinds and tailwinds. Clearly we would love to paint a rosier near-term picture. We would love to be able to say that the residential markets are turning. They are not yet. We would love to be able to say that margin expansion will come from material costs holding steady allowing our incredible productivity improvements to flow through to our margins. We can’t yet. Those things will happen, but not in the next quarter. What we can say is that we are delivering despite these historic headwinds. We can say that our general industry and Regal Beloit especially will benefit from energy and environmental requirements of our future. We can say that we expect to be in a strong position to take advantage of the opportunities globally and we believe that we can fairly say that the market is not yet properly valuing what we are achieving today, much less the outlook for our future. We continue to be excited about what lies ahead. We have a strong balance sheet, strong cash flow, and a solid pipeline of acquisition opportunities. We are in an industry that is critical to energy and to environmental stewardship. With that, we will open it up for questions.

(Operator instructions) Your first question comes from the line of Alexander Paris. Alexander Paris – Barrington Research Associates: Good afternoon. Nice quarter.

Thank you, Alex. Alexander Paris – Barrington Research Associates: Just a couple of questions. Could I get a little better feel for your international stock? You did 27% outside the United States. Could you have a rough percentage of like Europe, Japan, and so forth breakdown?

The way we look at that is Asia, kind of a broad scale versus – I have it by country, but – and I actually don’t have those with me. But the bulk of what we do is in the Asia, within Asia region, which would include China and India, as well as Thailand. But again I don’t have those numbers in front of me in the room. Alexander Paris – Barrington Research Associates: Okay. And – but Japan, as you look at separately – I’m trying to get – how big is Europe?

Europe for us is not large. We have on an annualized basis at somewhere in the neighborhood of, say, 50 million currently. Alexander Paris – Barrington Research Associates: Okay.

And probably actually a little above that. The Hwada business that we bought during the quarter has a fairly good size customer in Europe. So it’s probably between 50 million and 75 million now. Alexander Paris – Barrington Research Associates: Okay. And just looking at HVAC and residential, you’ve also got big housing problems in Spain, the UK, Australia, and Europe. So it sounds like that that’s not as big an impact for you as it is in the United States. Is that correct?

That’s correct. Our HVAC business, we do supply some of the U.S.-based customers that are located in Europe. It’s fairly small volume. Alexander Paris – Barrington Research Associates: Okay. Just one other question yet. Could you give us a rough idea of – you gave us the sales – incremental sales in the acquisition, but a rough idea of the accretion in the second quarter and what’s expected in the second half?

I don’t think our overall view has changed from the guidance that we’ve give previously for a true EPS accretion. And again what I have with me is the Op income for the business was approximately 7.7% or $10 million in Op income. So – Alexander Paris – Barrington Research Associates: Could you repeat the guidance that you gave earlier on those four acquisitions? The accretion for 2008, was it something like $0.35 or something like that?

If you take the midpoint of the range, I think it was $0.34. Alexander Paris – Barrington Research Associates: And there was no accretion from the latest one in China, but there will be some in the second half?

In the second half, for sure. The Hwada acquisition, which was in the results for two months, because of the amortization of the inventory step-up was basically neutral to earnings. I think it was actually a slight loss, but again immaterial. We will have a little bit carryover of some of that amortization in the third quarter, but we should be past the one-time purchase accounting after the third quarter. So we’ll see that more normal performance space certainly in the fourth quarter, but obviously step-up in performance in the third quarter as well. Alexander Paris – Barrington Research Associates: And you expect the 2009 tax rate to be more like your normal 35% or so?

I think that’s a good – we are a couple of months away from our financial plan, so until we get to that point, I think that’s a pretty good assumption. Alexander Paris – Barrington Research Associates: Okay, thank you very much.

Thank you

Your next question comes from the line of Mike Schneider. Mike Schneider – Robert W. Baird: Good afternoon guys.

Hi, Mike. Mike Schneider – Robert W. Baird: Maybe first we can just talk about trends through the quarter. Could you give us a sense of what orders and demand look like maybe industrial versus HVAC as you progressed through the quarter and maybe in July that it’s almost over?

Yes. In terms of HVAC, I would say that that was relatively steady throughout the quarter. I don’t – we may have ramped up just a little bit with some of the summer heat, but I would say was reasonably steady. Industrially we saw some slack in demand in the second half of June. Fortunately, July is back to the pattern in kind of order rates that we were seeing before that. But I would say the last half of June for whatever reason was slower than it has been during the rest of the quarter. Mike Schneider – Robert W. Baird: Okay. And then just distributor inventories, do you get a sense of whether they are restocking, de-stocking or no change as we’ve gone through the middle part of the area?

Mark, do you have any–?

No, I don’t have specifics on that. I mean, there has been no specific input provided to me on that. Mike Schneider – Robert W. Baird: And pricing in HVAC, have you been able to garner as much or as much as you need in the HVAC channel and pricing for the second half? I’ve seen the 8% increase that went out on industrial, but maybe an HVAC update?

There’s two pieces for the puzzle, Mike. Some of our customers have – we have material price contracts where the price goes up along with the material, and then in others where we don’t. There is obviously a tough time for them and they have been pushing back, but we’ve been rather diligent in our response. Mike Schneider – Robert W. Baird: Okay. And then just margins on the high efficiency portion of the business, it’s growing as a percent of the mix. I presume the margins are higher than segment average. Could you give us an order of magnitude so we can understand what the mix looks like going forward as the secular trend continues?

I think what we’ve said – we’ve never got very specific, Mike. As you know, what we’ve said is that it’s significant and that it follows what you would expect if you are providing higher efficiency product. Costs are higher, but the selling prices are higher, and overall the margins would be better than our standard product. Mike Schneider – Robert W. Baird: Okay. And then again a different mix question. North America and commercial and industrial, commercial was down hard last quarter, I wonder if you could give us some sense of what the growth rates look like industrial versus commercial this quarter and just what you read in, in terms of price and unit growth as well?

Sure. And we have got to a slightly different presentation and I’ll explain that. The former GE commercial AC business, we have moved in and are part of one of the industrial businesses. So there is gradually a lose visibility in what was the old GE CAC business. So we've gone to this presentation that you saw today, which will probably be the consistent presentation going forward. So even at this point, because of that change that we made earlier this year really took effect in the quarter, I couldn’t tell you exactly the GE business because some of those orders are going through the industrial businesses now. But directionally where that business was down mid-teens in the first quarter, it was down only I would say single-digit rate in the quarter. And again that’s probably an overstatement of how far down they were, given that some of the orders are now showing up in the Marathon brand. It was an improvement and that was something that we didn’t know would happen. Mike Schneider – Robert W. Baird: And that implies that the pure industrial portion of the business, Mark, actually decelerated a bit in the second quarter versus first quarter?

Yes, to some degree. And Mike, I think as we said, the second half of June is when we saw that. And as you would expect, we’ve been watching them very closely in July and it’s rebounded back to the level that we were seeing before. So it’s hard one to call. Mike Schneider – Robert W. Baird: Okay. And strange question, but just the shutdowns around the Olympics now having been through your facilities in Beijing and around there, has anything changed in terms of the length of the shutdowns or your expect of the impact on the business in the third quarter?

We don’t have anything that’s affecting us directly. We have no facilities that fall under that area. We’ve done a pretty exhaustive view of our supply chain and I don’t believe that we have any issues. We do have a few who are set down, but we were able to put inventory on place or plans for storage of inventory. Mike Schneider – Robert W. Baird: Great. Thank you guys.

Thank you.

Your next question comes from the lines of Steve Sanders. Steve Sanders – Stephens Inc.: Good afternoon.

Hi, Steve. Steve Sanders – Stephens Inc.: First a follow-up on the pricing side. You talked about some pretty aggressive price increases last quarter. Just a timing on when you implemented those and then looking at the July/August price increases, order of magnitude relative to what you talked about last year.

Mark, you want to deal with that?

We announced the price increases in the second quarter. And they went into effect either in July – early July or early August. And so that – those were the – that’s the same information we gave in the second quarter that we were at that point in time. Steve Sanders – Stephens Inc.: Okay. Okay, thanks. And then, Dave, a follow-up on your comment about Sinya. Is this an issue going forward with short-term problem? Can you just amplify those comments a little bit?

Sure. We have one customer that I mentioned that has in-house motor capability, and this is a customer primarily in residential HVAC. And it’s again a different type of HVAC system that’s a fairly small more inexpensive motor than what we would think about when you think about our U.S. HVAC business. And again they have always had an in-house motor capability and have used the outside companies such as Sinya to be one of their suppliers. And this is a product that was a big part of what Sinya did when we bought it. We have had an effort underway to bring other higher value-add products to Sinya on the commercial side and industrial side of their business to ultimately diversify what they do, somewhat knowing that you are always – could be impacted by a customer such as this. With the rising costs, we have put the disciplines in place not only at Sinya, but Hwada and other outside the U.S. businesses that recover the costs of material inflation. And I think that certainly factors into the decision by their customer quite a bit and that they don’t like these increases, and we are going to go ahead and push those. So – I think long-term our solution is that we have to bring other value-added products there and diversify ourselves around some of – what was their core products when we bought the business. And then the margins is something that price increases there to cover cost, but we needed to move the margins up anyway. So we’re going to move that through mix. So I think there will be a short-term. Short-term being, we’ve got some work to do there. In our third quarter guidance, we have Sinya off quite a bit as well again. So it’s going to get the kind of products and some of the things we want to get done there done, that we’ve got a new leader for that business that I think is very focused in our China leadership, the country leadership team is very focused on doing the right things with that business. And I think rallying the resources around what we need to do with Sinya back on track ultimately. Steve Sanders – Stephens Inc.: Okay. And then on the high efficiency product growth and percent of sales that you gave us this quarter, can you just provide a little bit more detail on the primary buckets there, how you are defining it?

Included in that would be any high efficiency energy saving product. Some of the ones that you would probably the most familiar with that, factor into that there, out of our HVAC business, the ECM product line, the ex motor, some of the products Mark talked about, commercial refrigeration whether they be internal generated ones or through the Morrill acquisition. In the industrial side, the NEMA premium high efficiency industrial products would be included in that, as well as in our gearing business some of the high efficiency gearing. So I don’t think we’re going to go into the details on any one of those groups in particular going forward. But that would be the total – sum total of the products they are adding up to that. Steve Sanders – Stephens Inc.: Okay. And then final question, Henry, you mentioned some favorable regulatory changes on the motor side in China. Can you just give us some additional details there?

This year they created a system where by – they actually have now created five different energy efficiency levels within the country and product like motors and lighting and some of the other – I think there are ten different items that were placed into this grid. And by this time next year, the lowest efficiency can longer be produced. And then three years later, the second lowest efficiency could no longer be produced. So they are just going to – typical China pragmatic way, go about forcing the efficiencies up. Steve Sanders – Stephens Inc.: Okay. Thanks very much.

For question we’ll go on to Chris Bamman. Chris Bamman – Morgan Joseph & Co.: Good afternoon, gentlemen.

Hi, Chris. Chris Bamman – Morgan Joseph & Co.: Just seem to be little unclear. Henry has mentioned that HVAC was down 12% in the quarter and yet in the press release it says 3.6% in motor sales. Can you just sort of clarify those two for me?

Yes, the 12% was market. Chris Bamman – Morgan Joseph & Co.: Okay.

That would come from the ARI and other data as far as market unit performance for the quarter. Chris Bamman – Morgan Joseph & Co.: Okay.

And we fared better than the market is the point. Chris Bamman – Morgan Joseph & Co.: Okay. And what did you say that the tax rate that you used for your guidance for the third quarter was?

I think it was 32.6%. Chris Bamman – Morgan Joseph & Co.: And that would be with the $0.07?

Correct. Chris Bamman – Morgan Joseph & Co.: And if you take that out–?

I think around 36.3%. Chris Bamman – Morgan Joseph & Co.: 36.3%, okay. That’s terrific. Actually most of my questions have been answered, so that’s all I have right now. Thank you.

Thanks.

The next question comes from the line of Jeff Hammond. Jeff Hammond – KeyBanc Capital Markets: Hi, good afternoon guys.

Hi, Jeff. Jeff Hammond – KeyBanc Capital Markets: I jumped on late, so I apologize if this is a repeat. But could you give us overall price contribution in the quarter? And then specific to res HVAC, what you thought price mix would have contributed versus the unit dynamic?

You didn’t miss anything because I didn’t specifically give that. Kind of keeping with our tradition and that of many of our competitors. But – effective pricing year-over-year I would say characterizes low-to-mid single digits. And a little bit less than that currently in HVAC. But with the price increase, as Mark mentioned, we should see both of those accelerate. Jeff Hammond – KeyBanc Capital Markets: Okay. And then in the first half of the year, you were kind of – you’ve put 1.5% organic growth 1Q, 3% 2Q – I mean, and yet you are expecting acceleration in price. So, do you expect that trend to change materially as we move into the back half or is that a reasonable run rate on a go-forward basis?

Yes. Jeff, you are asking the magic question. And what’s going to happen in our markets, I mean, our view is HVAC market is going to stay relatively like it is for the back half of the year. I mean, it’s going to have its normal seasonal twists and turns. But those are impeded in the numbers every year. Industrially we are still seeing very solid demand. I still think that we are getting a nice boost from exports, our customers' exports in particular, equipment due to the dollar and certainly nothing has changed materially in that regard from the last call. So we are continuing to see solid markets. Jeff Hammond – KeyBanc Capital Markets: Okay. And then just in terms of the acquisitions, would you – with Hwada coming in, how do you expect the trend – or what do you expect the trend to look like in terms of these acquired operating margins? Does that press down the margins near-term? How should we think about that relative to that revenue contribution?

I would say the businesses that we have in China are lower margin businesses. They typically are faster growth, so we can create good returns. And over time we would expect it – the markets there going to improve as they rationalize. But currently they still provide a good return on invested capital and provide this excess to market that we feel we need to be in to do what we need to do for customers here as well as there. So, overall, yes, those are going to be lower margins I think for the foreseeable future, lower than what we would see elsewhere that the acquisitions we did in 2007, we said that we thought it would take us about three years to get those up to other averages and we still are on schedule for that or slightly ahead of that schedule. We feel very good about it. Regards to China specifically, I think you have to look at it as being good return on invested capital coming predominantly from growth and not from margins. Jeff Hammond – KeyBanc Capital Markets: Okay. That’s good color. Thanks guys.

Thank you.

Nigel Coe – Deutsche Bank: Hi, good afternoon. Based on what you know now in terms of the announced price increases, and Siemen commodity remains [ph] where they are, how does that net price commodity look in 4Q?

Fourth quarter? Our whole intention behind the pricing efforts, which as you mentioned are very tough. It’s not our preferred route, but just necessary is with an eye towards eliminating that inflation price gap. In the fourth quarter, as I mentioned, that’s more in the neighborhood of $3 million to $5 million. So we’ve cut that gap in half. And as Mark mentioned, there was pricing that went in effect July – first part of July as pricing go into effect August. And many of our brands know that the steel continues to accelerate from here. There will be potentially another round of pricing later in the year. So I guess it’s a little early to predict. I would tell you, if everything holds flat, we'll have obviously some gain in pricing based on the time phasing of what we are doing this quarter. So we should see that gap probably decrease further than our intent to try to eliminate that by the fourth quarter. Nigel Coe – Deutsche Bank: Okay.

But again, I would say it’s early for us to make that claim. We’ve got some more work to do to make that happen. Nigel Coe – Deutsche Bank: Yes, I agree with that. And then, how rational is the market right now? Obviously we see some of the larger metal players have been pushing through similar price increases. But how rational is the market? Do you have any players out there who trying to gain market share?

Certainly. Certainly in the industrial marketplace has been very rational. And I think it’s true globally by the way. We’ve seen price increases coming out of competitors in China and again other locations as well. So I think that that is behaving rationally. You see some spot issues at times in smaller motors, but I wouldn’t say those are significant at this point. And without question, globally the costs have gone up and prices have gone up. Nigel Coe – Deutsche Bank: Okay. And then on the high efficiency side, I mean, we are seeing higher energy costs coming through, we’re seeing higher electricity costs going through into factories. Are you starting to see maybe even anecdotally just greater interest in replacing older metals with high efficiency motors? Is that gathering momentum? Are you starting to see that tidal wave coming through?

Yes, we see it – I mean, we see it literally every day at this point. It doesn’t feel like the tidal wave that you saw hit the shores a few years ago on TV yet, but it is just one wave after another that keeps coming. And a lot of that’s being driven in small motors by legislation and large motors at economic because typically large motors are used by businesses. We are paying more attention to it. We see just a continual move toward it. And I think we are just really now starting to see the tipping point on some of the electricity costs around the country. They held steady for a little longer than you might have estimated. But we are seeing those move, and as those move, they will pick up speed. Nigel Coe – Deutsche Bank: Okay. What’s the kind of typical payback periods now for – a typical high efficiency motor versus a standard motor, what would be the payback period now versus maybe few years ago?

Obviously it’s getting better, but you have to kind of look at it in a couple different buckets. A lot of it has to do with how much you are using process duty companies where they are running 24/7, have understood the equation for a long time. Pulp and paper, and chemicals and some of those industries that are process duty, have been buying high efficiency motors for years. What’s happening is as the prices go up, it moves down the change to where people who are using it less than 24/7, it starts to make sense for. For example, commercial refrigeration, we’ve talked about some of the new products we’ve introduced there. We had paybacks for replacing a perfectly good motor that were anywhere from a year – as low as a year or less, maybe ten months to as much as 18 months, but very good payback. As you look out at other motors, when you get up to a large motor, typically the payback would be great. I would say less than a year or year to a year and a half if you are going to replace the motor anyway. But if you are just going to replace a perfectly good motor, the payback might be three to five years. Nigel Coe – Deutsche Bank: Okay. Very helpful. Thanks.

Your next question comes from the line of Bill Dezellem. Bill Dezellem – Tieton Capital Management: I have a couple of questions. First of all, would you please give us your perspective on the economic activity levels in China and India separately? And we ask the question because as you have I'm sure seen commentary in the popular press that implies some slowdown taking place there.

Certainly what we’ve seen in China is that it’s kind of interesting time, given the cost of transportation costs and the cost of materials and some of the escalation in inflation in China. You can see some of the edge coming off in terms of product that's produced there to bring back North America for cost purposes only. As we said all along, we are there, number one, to be there as a part of a growing market, and number two is to be there for customers who have global operations and needed to be there, and number three would be for cost purposes when it makes sense. So the cost equation is changing. That said, that economy is still – from everything we see today, it still remains pretty (inaudible) strong. As Dave said, without the situation with Sinya, we were up 15% or 14% year-over-year. So, still very strong performance, maybe not as strong as last year this time when it was 25% to 30%, but still very solid. India continues to be growing market for us. The Middle East continues to be a growing market for us out of India – shipping out of India. So I don’t there has been appreciable change. We haven’t seen an appreciable change year-over-year there. Bill Dezellem – Tieton Capital Management: And entirely different topic, if you’ve said this, I apologize, but what percentage of your sales are represented by products that you had put under the energy savings category?

In the quarter, it ended up being 12.9% currently. Bill Dezellem – Tieton Capital Management: Okay. Thank you both.

Thank you.

Your next question comes from the line of Christopher Glynn. Christopher Glynn – Oppenheimer: Hi, thank you. Little more on the price cost, just wondering what kind of scale in the cost increases you are looking at year-over-year in the third quarter versus the second? And then, the incremental pricing, if you can kind of size that versus the second quarter?

I actually don’t have the pieces put out in front of me in the room, but what I can tell you is both of them were up substantially. What we are seeing just directionally is that inflation was accelerating from the first quarter to second, and then second to the third, fourth, and that’s primarily driven by the pricing formulas we have for steel. We are on an index based formula, which somewhat uses history as the forward price. So the big run-up you’ve seen in the steel markets hit us hard in the third quarter and then into the fourth quarter. So both of them were up substantially, third and fourth quarter, to leave us with the gap that we talked about. Christopher Glynn – Oppenheimer: Okay. And then, the gap you talked about is a nice narrowing from the second quarter. So just wondering if you maybe you see it little on the timing of the second quarter to, I don’t know, increase the stickiness going forward?

I think we are putting – we went after the pricing just as quick as we can, but you’ve got obviously a customer and we’re very sensitive – although maybe it doesn’t sound that way at all times. We are very sensitive to understand their needs. So we are trying to implement pricing, the pricing we need as quickly as we can again understanding that certain customers do need some time to react and deal with their outlet, and their outlet being for their customer base. But beyond that, we are putting pricing in – prices as quickly as we can. Christopher Glynn – Oppenheimer: Okay. Thank you. And then just finally, are there any major OEM contracts there coming up for renewal in the near future?

I mean, the answer is yes, because they are always some that are coming up, but nothing in the – nothing out of the normal. Christopher Glynn – Oppenheimer: Okay. Thanks very much.

Thank you.

And Holden Lewis with BB&T. Holden Lewis – BB&T: Good afternoon, thank you. You had made mention about the new products, and can you just clarify, I think you said 28% sales, is that on a three or a five-year sort of definition?

What we were talking about – you’re talking about the energy efficient?

Dave, I made the comment that it was 28% on a three-year. Holden Lewis – BB&T: On a three-year? Okay. Can you talk about what that might have been maybe two years ago and kind of what you expect that to be maybe two years out? And then talk also the 28% of sales, I mean what’s the margin on that sort of pool the business versus the res, I’m just trying to get a sense of how this fits in strategically.

Mark, do you–?

We started capturing the data about a year ago. So there has been slight change upward from a year ago. And the margins on the newer products are better than the margins on the older products. Holden Lewis – BB&T: Materially so or –?

By a few points. Holden Lewis – BB&T: Okay. All right. Thank you.

And there are no further questions.

Okay. We want to thank all of you for joining the call and for your interest in Regal Beloit. I’d leave you with two thoughts. First of all, we are delivering in a very difficult environment and I think the better news is that we are positioned for a great future. Thank you and have a great day.

Thank you for participating in today’s Regal Beloit second quarter earnings conference call. You may now disconnect.