Frost & Sullivan Honors Braeburn System's Remarkable Growth in a Mature Thermostat Market

Montgomery, Illinois - November 9, 2006: Frost & Sullivan selected Braeburn Systems LLC as the recipient of the 2006 Frost & Sullivan Award for Growth Strategy Leadership in the North American Thermostats Market. The company's success, ability to overcome obstacles, and preeminence in growth strategy leadership stems from its commitment to its core competencies.

Braeburn has overcome formidable market entry barriers to become the fastest growing supplier of electronic thermostats in North America. Between 2001 and 2006, it witnessed an excellent compound annual growth rate (CAGR) of 105 percent, when the overall market CAGR was only 4.8 percent.

The company achieved this growth through sound financial and operational strategies. For instance, rather than building its own logistical infrastructure, Braeburn outsourced all its logistical needs and manufacturing operations such as warehousing, real-time delivery, and assembly.

By eliminating the need to invest resources in non-core competencies, it has minimized overheads and instead, focused on the primary objectives of building and selling high-value thermostats.

"Braeburn has also devised a unique "pull-through" strategy that provides a strong incentive for contractors to "pull" Braeburn's products off distributor's shelves and into the market," says Frost & Sullivan Research Analyst David Lee. "This strategy is primarily based on an innovative branding program that partners contractors with Braeburn to create a unique co-brand."

Braeburn has developed a convenient process that allows contractors to permanently laser-mark or brand their name, along with limited information onto its thermostats. This tactic is significantly contributed to the company's revenues as many contractors have adopted the highly effective and low-cost marketing and advertising platform.

"The core commitment to high value, customer focus, and product research and development has enabled Braeburn to develop and execute critical initiatives for success," notes Lee. "As Braeburn continues to develop and refine new and existing best practices, it will continue to be successful."

Each year Frost & Sullivan presents this Award to the company that has bolstered its position in the market during the base year and whose strategy will have a lasting impact on the market. The company has proven its ability to grow in a saturated or maturing market, implement a unique sales strategy, and invent technologies.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com

Braeburn Systems LLC is a manufacturer of digital electronic thermostats and controls located in Montgomery, Illinois. For more information on Braeburn products, a local sales representative, or a distributor in your area contact Braeburn sales department at 866-268-5599 or send a fax to 866-268-8897, or go to our website at www.braeburnonline.com and send us an email.