July 23, 2003

To Whom It May Concern,

The purpose of this letter is to make you aware that Mackie has entered the final stages of an important transition. We believe this transition will further our position as a world-class developer, designer and marketer of professional audio products.

For several years, Mackie has been laying the groundwork to outsource the assembly of a number of high-volume products currently produced in our Woodinville, Wash. headquarters. This transition will allow Mackie to bring more cost-effective and competitive products to market than ever before, while also allowing us to invest more resources in key areas such as Product Development, Engineering and Industrial Design.

As a result of this new focus, Mackie has issued notices to approximately 200 employees in Woodinville manufacturing who will be directly affected by this transition. It is important to understand that cessation of Woodinville manufacturing is the next phase in a very important and deliberate transition, and not a scaling of workforce to revenue, as industry rumors may suggest.

Manufacturing employees affected by this change will receive completion bonuses and severance packages based on years of service. They may also be eligible for federal help in the form of extended unemployment benefits and retraining benefits.

As we move forward, Mackie will seek out the best possible resources around the world to provide manufacturing expertise equal to our own design and engineering talents. In some cases these resources will be internal; in some cases they will be sub-contractors carefully selected for their ability to meet our world-renowned quality control standards.

In the coming months, Mackie will introduce an unprecedented range of new products. These products aim to redefine the pro audio industry with truly amazing features and value. These new products are also a clear indication of what we will be able to accomplish as a result of our new structure.

Mackie remains committed to the creative horsepower of our Engineering, Product Development, Industrial Design and Marketing teams, as well as the pace-setting standards of our Sales, Sales Admin, Support and Service teams. All of these functions will remain fully active at the company's headquarters in Woodinville.

We feel that we have turned a significant corner at Mackie and are once again on the path to growth. We look forward to building on the passion and product development talents that have made Mackie an industry leader for nearly 15 years.

Sincerely,

Jamie Engen
President and CEO
Mackie Designs Inc.