Update on the Coronavirus outbreak in China 2

Dear Valued Customers,

We are writing to provide an update on the impact of the COVID-2019 virus on our China operations as well as review other matters affecting the delivery of our goods.

Many regions of China, including where our EDAC manufacturing facility is located, have returned to work commencing Feb 10th. We are following all government agency mandatory safety guidelines for operating procedures at our plant. While our operations have resumed, production levels are being impacted by a significant portion of our staff being unable to travel from the interior of China to return to the plant due to travel restrictions, and some of our raw material suppliers being similarly impacted. Some of our suppliers have been unable to resume production since the Chinese New Year. Custom’s clearance for transporting goods in and out of China are also delayed significantly affecting shipments of finished goods out of China.

We are also experiencing CN rail line disruption in Western Canada that may effect shipments arriving by sea freight through the port in Vancouver.

We will proactively monitor the situation with the COVID-2019 virus as well as the CN rail disruption and implement appropriate action where possible to mitigate risk of any supply disruption.

We are currently contacting our OEM customers and distribution partners as we become aware of any existing orders at risk of being delivered on time. Affected customers will be notified directly.

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