Washington, D.C., September 12, 2005 - Establishing a viable electronics recycling infrastructure nationwide that is convenient for consumers will require national consistency, shared responsibility and the participation of all major stakeholders, the Electronic Industries Alliance (EIA) said last week in testimony before the U.S. House Subcommittee on Environment and Hazardous Materials. To read the testimony in full, go to http://www.eia.org/resources/dmccurdy_eia_house_testimony.doc

EIA President and CEO Dave McCurdy, a former House member, testified on behalf of the Alliance. Federal government interest in the issue has been welcomed by EIA's member companies, McCurdy said, because "there is clearly a role for the federal government to play in bringing national consistency to this emerging field." EIA would like federal policymakers to work with the electronics industry "to develop an infrastructure that would keep costs to consumers as low as possible, create a level playing field for market participants, and ensure that products are being recycled in an environmentally sound manner," according to McCurdy.

Market competition within the U.S. electronics industry must also be considered by policymakers intent on developing a national recycling infrastructure, McCurdy noted. "Any discussion of electronics recycling must recognize the intense competitive pressures within the U.S. electronics industry and the potential impacts that government actions can have on the market competitiveness of U.S. companies. Our member companies are already facing unprecedented global competition as the primary products contemplated under most electronics recycling approaches are increasingly treated by the market as commodities. Since margins are thin and producers depend on volume sales, any shift in the competitive playing field can have a direct and immediate impact on market share and the bottom line."

Moreover, producers' systems, programs and approaches to electronics recycling are motivated, in part, by their respective business models and corporate strategies. "Given this diversity of business models and capabilities, any particular funding approach may result in a competitive imbalance in this extremely competitive industry," McCurdy said. "Concerns over fair competition are significantly compounded due to the presence in the market of numerous small producers and generic-brand manufacturers that cannot necessarily be compelled to participate in a recycling program."

EIA believes implementing a system based on the principle of shared responsibility will increase the efficient collection of electronics and ensure economies of scale by taking advantage of existing infrastructure. "Each stakeholder can and should bring its own strengths and capabilities to the table under a shared responsibility model," said McCurdy. Manufacturers can continue to "design products that are lighter, more efficient, more environmentally-friendly, and easier to upgrade and recycle. Because of their direct and special relationship with the public, their numerous stores and their existing transportation and distribution networks, retailers have a vital role to play. Recyclers need to provide their services in a safe, cost-effective and environmentally-sound manner." As part of its overall effort to ensure proper and safe electronics recycling, McCurdy told the Subcommittee that "EIA is working with the U.S. EPA, recyclers and other stakeholders to help develop appropriate standards and a certification process for electronics recyclers."

McCurdy also noted that electronics manufacturers recognize their role in the process and have worked extensively with federal and international government agencies to address the issue. EIA member companies have been involved in the proper recovery and management of well over two billion pounds of used electronics products, through a combination of direct corporate efforts and innovative partnerships. The companies are also using significant quantities of recycled materials, including glass, metals and plastics, in new generations of their products, and are on target to be in compliance with the European Union Directive on the Restriction of Hazardous Substances (the RoHS Directive) when it takes effect next year. EIA has also developed a consumer outreach program known as the Consumer Education Initiative that informs consumers on over 2,000 recycling and reuse options available in local communities throughout the United States, at www.eiae.org.

# # # #

About EIA: The Electronic Industries Alliance (EIA) is the leading advocate in Washington, D.C., for the U.S. high-tech industry. The Alliance, which traces its origins to the Radio Manufacturers Association (chartered in 1924), is a partnership of electronic and high-tech associations and companies whose mission is to promote the market development and competitiveness of the $400 billion U.S. high-tech and electronics industries through domestic and international policy efforts. EIA's corporate members - nearly 1,300 - provide products and services ranging from microscopic electronic components to state-of-the-art defense, space and industry high-tech systems, as well as the full range of telecommunications and consumer electronics products. Headquartered in Arlington, Va., the Alliance is made up of the Electronic Components, Assemblies & Materials Association (ECA); the Government Electronics & Information Technology Association (GEIA); JEDEC; the Telecommunications Industry Association (TIA); and leading consumer electronics companies who participate in EIA's Environmental Issues Council. EIA is also heavily involved in cyber security issues through the Internet Security Alliance (ISAlliance), and education issues, through the National Science & Technology Education Partnership (NSTEP).