World Micro Overview

World Micro Overview Distribution Component Sourcing Materials Management Solutions

Office is open in Pen • > Ready for business • > Web portal • > **Excess*** • > Piped in supply • > Ability to source global stock

World Micro Overview Distribution and Materials Management Company Beginning in 1995 as a Southeast regional Electronics Distributor, World Micro now works in every region of the world as a certified partner to many leading OEMs and CMs as an Electronics, Aerospace and Medical Distribution and Materials Management Company. Many customers have come to depend on World Micro to help them solve problems related to the procurement of parts at every stage of the Product Life Cycle, and solve challenging materials management issues. June, 2011 –Office and Warehouse operational in Penang, Malaysia. Atlanta Penang

Quality Initiatives We Provide The Safety Net • World Micro’s consistent quality of services, parts, and component integrity is not an option, nor is it an accident. It is a by-product of deliberate actions and strategic decisions World Micro has made to become the premier Distributor leading the industry with a Quality program. • “All of our actions demonstrate our mission: To be the best in the world at detecting Counterfeit Components.” Dan Ellsworth, President and CEO

Quality Initiatives Quality Has No Finish Line World Micro continuously improves processes by focusing on Product Quality, Communication, Customer Satisfaction, Efficiencies and Training. Goal is to meet and exceed our customers’ expectations for Quality and Counterfeit Abatement. • 8 Certified IDEA Quality Inspectors • ITAR Registered and Compliant • 95%+ Satisfaction Ratings From Our Customers • IDEA Board Member • Quality Objectives: • Zero Material Return Rate for Discrepancies and Defects • 100% Delivery to Committed Shipment Dates • 95%+ Satisfaction Ratings From Our Customers • Company Certifications: • ISO-9001:2008 Certified; • AS9120 Military and Aerospace Quality Certification • ISO 13485 Medical Electronics Certification • QSLD – DoD Qualified Distributor for Electronic Components and Fasteners • Warehouse is ANSI/ESD S20.20-1999 Certified • #C2005-01062 - Warehouse is a temperature controlled & security monitored facility Quality Accomplishments:

Quality Initiatives Quality – Industry Recognized Expertise Mr. Ogg joined World Micro as the Director of Quality. Mr. Ogg is responsible for World Micro's quality initiatives, product quality, ISO certifications, technical documentation, and Quality team. Prior to joining World Micro, Mr. Ogg held senior management positions with Seagate Technology and Digital Equipment Corporation. He brings 40 years of high tech electronics experience to his position, and is a noted Expert and regular Speaker at industry trade events on Quality topics and Counterfeit Detection techniques. • World Micro participated in the creation of the IDEA-STD-1010-A standard. • World Micro’s process (IDEA-STD-1010-A) is now recognized and used by NASA, U.S. Border Patrol, most Original Component Manufacturers, Electronic Manufacturer Service Providers and Electronics Distributors. • World Micro sits on the G-19 SAE Committee, IDEA sub-committee and are board members of SMTA and a fifteen year member of ERAI. • Audit Inspections (Passed) – Lockheed, Cessna, GE Industrial and Consumer, Northrop Grumman, Cisco, L-3 Communications, Diebold • Industry Speaker on Counterfeit Detection – Cessna Supplier Conference, SMTA Int’l, SMTA Penang, Orange County Electronics Assoc., and many more

Quality Initiatives Inspection Equipment World Micro has invested over $1 Million to date to detect and protect our customers from discrepancies and substandard parts. • X-Ray System • De-capsulation System • Marker Permanency Testing • False Top Coat Verifications • Material composition analysis and Identification X-Strata 980 XRF Analysis - Precious metal alloy assay and identification Nisene JetEtch 500 De-capsulation Equipment JewelBox-70T Real-Time X-Ray Inspection System Computer based Microscope And Camera equipment at each Inspection Stations

Quality Initiatives IDEA Inspection Process

Notable Electronic and Aerospace Customers Notable Customers

Core Competency - Distribution Distribution – Electronic, Aerospace And Medical World Micro's distribution services provide tailored solutions to our customer’s unique requirements. We are a “Customer-Centric” Distributor with an attitude and strategic focus designed to truly bring real value to our customers and the supply chain we work with. • Franchise and Authorized Lines – Electronic Components, Embedded Computing, Medical and Aerospace Products • Independent Distribution – Global Sourcing with Counterfeit Protection • Customized Distribution Services and Solutions • Warehouse Audit Inspections • Cisco – July 2009 - Company Certification Audit • L3 Communications – April 2011 - Company Certification Audit • Lockheed Martin Audit – Aug 2009 - Aerospace Company Certification Audit • Cessna Aircraft – Sep 2009 - Aerospace Company Certification Audit • DLA – Mar 2011 - Government QSLD Certification Audit • Northrop Grumman – Nov, 2009 - Aerospace Company Certification Audit • GE Industrial and Consumer – Jan, 2010 - Company Certification Audit

Core Competency – Component Sourcing Component Sourcing OEMs and CMs consistently face issues that leave them frustrated with a need to source components on a regular basis. Whether it is due to prices or availability, the need is there. World Micro is very creative in solving our customer’s problems and making sure the inventory they need is on our shelves when they need it, at a reasonable cost structure and 100% guaranteed against discrepancies and defects. • Electronic Components • Embedded Computing Components • Medical Components • Aerospace Products • Finished Electronic Products • Scheduled Orders • Obsoletes, Shortages, Allocations, and Crossing Solutions • Global Reach – An Attitude: no stone left unturned • Over 2500 Customers • Quality Objective: Zero material return for discrepancies and defects

Core Competency – Medical Business Solutions Medical Solutions In 2010 World Micro initiated a new strategic business initiative focused on serving the needs of the Medical device manufacturing community. Building upon the success of serving our existing Medical OEM customers needs with Embedded Computing Products and EOL Solutions, the new initiative brings forward the strength of our World Class Embedded Product Lines and joins them with new and exciting Electronic Component Product and Service offerings to meet the demanding needs of the Medical Device OEMs we serve. • Medically Approved Electronic Components – Sourcing and Authorized Lines • Medically Approved Embedded Computing Products – Sourcing and Authorized Lines • Medical Services – Analysis Services Offerings • Pre/Post – Layout Signal Integrity Analysis – Teraspeed and Brio Concept Strategic Partners • Board Design Review and Audit • Power Integrity Analysis • Stack up Optimization A Freescale Technology Alliance Partner • Medical Services – Regulatory Services Offerings • TIETRONIX - MDA Software – Strategic Partner • OmedTech – 510k Application Preparation – Strategic Partner • QC/ISO 13485 Guidance and Distribution Partner • Clinical Trial Development

Core Competency – Medical Business Solutions Medical Device Focus – Patient Monitoring and Therapy Computing Product Solutions Authorized Lines And Factory Direct • Advantech – Embedded Computing Products • Advansus – Custom Design Embedded Computing Solutions • QuanMax – Leading Computing Products and Design Services • Crucial Memory – Leading Memory Provider • ERG – Endicott Research Group Inverters • Kontron America – Leading Embedded Computing Solutions Patient Monitoring LCD Display Solutions • DisplayTech • Microtips • Oriental Display • Monitors • BP • Blood Glucose • Anethesia Misc Suppliers Electronic Component Solutions • Honeywell Aerospace • GE Fanuc • Cooper Bussman • 3D Labs • IBM Corporation • Amphenol • Fairchild • Linx Technologies • EIC Semiconductor • Barker Microfarads • Tekmos • Kyocera Patient Therapy Service Solutions Service Offerings Strategic Partnerships • Signal Integrity Analysis • Board Design Review and Audit • Power Integrity Analysis • Stack up Optimization • Regulatory Services Offerings • MDA Software • 510k Application Preparation • QC/ISO 13485 Guidance • Clinical Trial Development • Part Design Services – new and legacy • Board Level Design Services – new and legacy CPAP Ventilator Infusion Pump EEG/ECG Pulse OX Strategic Partners • TeraSpeed • Brio Concept • TIETRONIX • OmedTech • Advansus • QuanMax Portability Low Power Consumption Smaller Design Envelope Higher Signal Speed Solutions

Core Competency – Materials Management Solutions Manager Our Goal is to be a valued Partner helping our Customers pro-actively manage the 20% of critical issues that cause over 80% of their difficulties in their supply chain and new designs. The value received: • Dedicated Team of Experts in Solving Difficult Supply Chain Problems • Reduced Costs • Engineers are able to focus on critical design activity while we save them valuable time locating and bringing solutions • Increased Revenues • Sell excess inventory for top dollar without dedicating internal resources • Increase sales of existing product by lengthening manufacturing lifecycles. • Convenient Online Management Tool… • A Trusted Partner…not just a part supplier

Materials Management - High Tech Survey Results Supply Chain Survey Comments According to a recent state-of-the-industry report from “Eye For Transport”: • 96 percent of executives surveyed feel pressure to increase efficiencies and boost profit • Summary - companies need to dig deeper to find the cuts to save money and improve profits Improving Internal Efficiencies Improved Forecasting Cheaper or Better Sourcing of Materials Investing in Tech that decreases costs Measures World Micro Solves Cutting Tech Investments

Materials Management - Real World Class Opportunities Real World Opportunities Already Engaged and/or Seen Vendor Consolidation of 134 suppliers (customer and engaged) Taking over production of 200 legacy products and managing distribution (customer and engaged) Extending a design cycle by suggesting an alternate manufacturer (customer and engaged) Distributing $70 Million worth of slow moving inventory, and getting access to all their customers and manufacturers (engaged) Using the portal to give visibility to excess at 53 sites (customer and seen) Managing Excess Issues related to all 8 divisions of Parker, and distribute slow moving parts. (customer and seen) Managing over 100 ECNs a week and selling solutions for the problems they create (seen)

Materials Management - Real World Class Opportunities Real World Solutions – Case Studies World Class Customers World Micro was approached by Diebold to create a custom solution for the “Service” side of their business. The challenge was the number of SKU’s that still needed support on units in the field going back to the 1970’s. Diebold was searching for a vendor with a strong QC program and the ability to locate difficult and often obsolete parts in a timely manner. The solution was an agreement with World Micro who now manages over 100 SKU’s (and growing), and works with Diebold as the “master distributor” providing vendor consolidation for vendors coded as low-mid volume. This has freed up countless resources, lowered the overall operating costs, decreased the number of vendors, and improved on-time delivery rates for this critical area of the business. Cadillac Jack, a mid-tier global gaming company , worked with World Micro who helped create immediate and long-term solutions to a chronic design issue. Like many low-mid volume users of Intel motherboards, they are subject to the whims of Intel’s motherboard lifecycle of 12-18 months. This required them to constantly be in the redesign cycle. In an effort to help prevent the constant state of redesigns, World Micro set up a 3 year stocking package of the Intel motherboard and processor beyond the last time delivery date of standard franchise distributor. To solve the constant redesigns, World Micro worked with a key partner to design an industrial grade motherboard at a price point that saved them over $58 per board from other options available in the industry. As a result, they were able to have the same motherboard in production for 5 years, and they received many “soft dollar” savings from only having one board in the field, as well as, not having to work on what would have been three redesigns in the same period.

Materials Management – The “20%” Issues We Solve Current Issues Faced by OEMs and CMs Through the Product Life Cycle World Micro focuses on creating solutions to solve the 20% of issues that traditional distribution fails to solve. • 80% of Production Parts Procurement is on Auto Pilot • Supply Chain is Established with Manufacturing and Distribution “Partners” • Aggressively Negotiated • Pro-Actively Managed 80% 20% Production Procurement Materials Planning End-of-Life Management • This 20% provides 80% of the daily issues (headaches) managing the supply chain • Re-Actively managed by nature • Excess Inventory is a by-product and an after thought…rarely managed And Sourcing Concept Design Excess Inventory Management Prototyping • We work with Design Engineers to save them valuable time by sourcing critical parts needed for new designs or EOL issues

Materials Management – Problems We Solve Common Procurement Problems “We Solve Difficult Supply Chain Issues” Time to Analyze Risk on AVL and BOMs Single Source Exposure Too Many Suppliers – Purchase Orders On Time Delivery Issues COD or short credit terms Production Stage Distributor and Mfr will not Stock Parts Allocations – No Stock Line Down - Expensive At Every Stage of the Product Lifecycle Even The Design Stage (Ask us how) End-of-Life Notices or ECNs Last Time Buys Shortages or Hard-To-Find Parts Obsolete Components Counterfeit and sub-par parts End-of-Life Quality Declines Legacy Product Long Life-Cycles Redesign of Parts or Boards Aging Inventory Excess Inventory Inventory taking Warehouse space Excess Inventory

Materials Management – Current and Future Services World Micro’s Service Offerings Current Services Production Procurement • Cross Solutions • Vendor Consolidation / Optimization • Customized Stocking Programs • Allocation and Shortage Sourcing • Counterfeit Protection • BOM Management Services – Scrubbing, Risk Analysis, ECN and EOL Tracking, AVL “Watchdog” Monitoring • Low Cost Replacement Analysis • Vendor Consolidation / Optimization • Positive PPV – Purchase Price Variable Opportunity Monitoring • Online Portal - Value Summary Reports For Customers End-of-Life Management and Sourcing • Obsolete and End of Life Sourcing • Cross Reference Research • Customized Stocking and Distribution Programs • Last Time Buys and Stocking Solutions • Counterfeit Protection • Pro-Active 3rd Party Manager of EOL and PCN Notices • Wafer/Die - Critical Part Continued Manufacturing Services, redesign and Reverse Engineering • Refresh Board Design Services (Extend Life and /or Lower Cost) Excess Inventory Management • NIMS – Inventory Balancing Program between facilities, divisions, subsidiaries or CMs…Globally • Environmental Disposal – NAID Certified Destruction/Recycling • Excess Lot Buys • Consignment Programs • Online Consignment Management Portal • Online One-Click Consignment “Recall”

Materials Management – Online Customer Portal Consigned Inventory Management

Materials Management – Online Customer Portal RFQ Management Tool

Materials Management – Online Customer Portal Customer Account Information

Materials Management – Online Inventory Balancing Networked Inventory Management System - (NIMS) NIMS gives an OEM the ability to balance Inventory between a network of facilities, divisions, subsidiaries and CMs…on a Global basis. Each network member is able to view all OEM Customer Owned Inventory (COI) at every location in the network: • Benefits: • Preserves Capital and Reduces Costs - Use Excess/Consigned Inventory for current requirements • Risk Mitigation – reduces open market spend and exposure • Profiton Higher Margin Open Market Sales for Hot Parts • Pro-Active vs. Reactive Solution to Excess Inventory issues Customer Online Portal OEM Excess Inventory OEM Consigned Inventory OEM Production Inventory CM Excess Inventory WM and Global Inventory

Materials Management - Summary In Summary • Industry Pressured- to find more ways to manage costs and drive profit • Few Solutions-Companies do not have enough resources to effectively manage EOL issues • Competition- No company has yet offered a complete suite of EOL services • Changing our Brand- World Micro as a Materials Management Company…Not a Independent Distributor or Broker • Were Already Doing It- All of these services are being provided by us or our partners…we are simply defining a suite of services to pro-actively manage all these difficult problems • World Class Online Tools – currently available being used globally by our valued customers • Enterprise Partner– What we are quickly becoming with global corporations such as Agilent, SanDisk and Diebold

World Micro Overview