Conflict Material

As a purchaser of products containing the metals tin or gold from suppliers for use in our manufacturing process, PPI Power, Inc. continues to be concerned about the reports of violence and human rights violations resulting from the sourcing of such metals from the Conflict Region. This issue has gained increasing visibility, including as a result of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related U.S. Securities and Exchange Commission implementing rules which, starting in 2013, impose disclosure requirements on public companies for the purpose of promoting awareness regarding the use of Conflict Minerals. In response to evolving customer, industry and regulatory requirements, PPI Power, Inc. is posting their Conflict Minerals Policy.

PPI Power's products are to be conflict free, meaning that they do not contain tin or gold that direct or indirectly finances or benefits armed groups in the Conflict Region. We are committed to ensuring conflict free sourcing of metals from our supply chain through collaboration with our suppliers.

We require the assurance of our suppliers that any such metals are not being sourced from mines in Conflict Regions. We expect our suppliers to engage in due diligence to analyze their sources and to complete the EICC Conflict Minerals reporting template. Suppliers must ensure that all metals sold to or used to manufacture products for use by PPI Power, Inc. originate from certified conflict free smelters validated as compliant to the EICC/GeSI Conflict Free Smelter (CFS) protocol, using the CFS Compliant Smelter List. This global initiative utilizes an independent third party to evaluate a smelter's procurement activities and determine if the smelter demonstrates that materials they processed originated from conflict free sources. The list of compliant smelters and refiners is posted at www.conflictfreesmelter.org.

Based on the information we have gathered from our suppliers, as of this moment PPI Power, Inc. does not use metals sourced from the Conflict Region in the manufacture of our products. Supplier conformance and incorporation of new requirements are an on-going process. We will continue to review and update our information as necessary. If we become aware that our supply chain includes metals from the Conflict Region we will take action to promptly review the circumstances and remedy the situation as appropriate.