HIGHLIGHTS:

 

Every day effects of the Corona Virus are subsiding rapidly and life here is returning to normal. The government feels they have the crisis resolved as new cases of the virus in China have been on a daily decrease now for over one week. In Jiangsu Province, where we are located (Jiangsu is larger than California, Oregon and Washington combined and has a population of 80 million people) there has not been a single new case of infection for the last 6 days. As a result, all travel restrictions have been lifted and road blocks and mandatory temperature checks have been suspended. Most all factories are now either open or opening and they are slowly coming back up to speed. Many remote location workers are still just returning this week and the 14-day quarantine period still remains in effect before they can start work which is the reason for the slow ramp up.

 

Normal places of business such as shopping malls, theatres, restaurants, hotels and the like are still closed but scheduled to start opening this week.

We are cautioned however to remain vigilant and pandemic procedures remain in effect throughout the country and in our factory. Everyone is required to wear face masks, eye protection and gloves at all times. Every employee of the company has their temperature taken twice per day and must maintain a physical separation from each other of at least 1 meter at all times. In addition, everyone is required to complete a daily report on where they went during non-working hours and list the people that they came into contact with. In this way if there is an outbreak the government can quickly identify everyone that had contact and possible contamination with infected people.

We of course are keeping up to date with news from other parts of the world where outbreaks are rising and vigilance is called for. We understand many companies such as Apple and Microsoft are warning of disruption to supply chains and reduced financial performance.

We are pleased to confirm that Exact Medical is in much better condition than many companies large and small. As we were successful in negotiating the opening of our factory early on and secured permission to move our remote location employees even during the difficulties of travel bans and lack of public transportation; we are now in a strong position. I can announce that all of our employees have completed their quarantine period without any issues and today Exact is operating at 100% of production capacity.

While of course we have a large backlog of orders to complete we are operating aggressively with overtime and additional employees over and above our normal cadre. Even so it will take some number of weeks before we can return to normal. Regardless, every day now we are reducing the backlog of late orders and we will not hesitate until we return to on time production and on time shipment to all of our customers.

Please continue to share with us your priority items that we can deploy resources to the best effect.

I continue to thank all of our customers for their support and understanding through this ongoing difficult process.

David Power

President

Exact Medical Products, Inc.