ITEM 2.05 Costs Associated with Exit or Disposal Activities

On February 3, 2009, the Registrant announced a cost reduction initiative that includes a workforce reduction that combines both voluntary and involuntary terminations and will affect about 10% of its salaried staffing worldwide. The Registrant also announced that in addition to the workforce reduction, it was freezing salaries, and significantly reducing other operating and overhead expenses. Together these planned actions will reduce the Registrant's total expenses on an annualized basis by approximately $27 million.

The Registrant announced at that time that the total cash severance charge of this cost reduction initiative is expected to be approximately $2.5 million. The Registrant announced that it was currently assessing the impact of the related severance costs on the first quarter 2009 earnings in accordance with Statement of Financial Accounting Standards (SFAS) No. 146, Accounting for Costs Associated with Exit or Disposal Activities, and SFAS No. 112, Employers' Accounting for Postretirement Benefits, and would provide this information when it is available.

On March 24, 2009, the Registrant concluded that it would take approximately $3.0 million of severance charges in the first quarter of 2009 in connection with this cost reduction initiative. The approximately $3.0 million charge is higher than the Company's initial estimate due to additional terminations in the first quarter of 2009 that were not anticipated at the time the initial estimate was made.