Update on Hedwin Division of Zacros America move to Newark, DE

September 1, 2016

Dear business partner –

First of all, I would like to express our thanks to our valuable customers.

Over the past 18 months, we have been moving the bulk of our operations out of an aging facility in Baltimore, MD, relocating to our newer, larger and cleaner facility in Newark, DE.

Our move has been slow, to allow time for all equipment to be fully serviced and upgraded before placement on the Newark production floor. All lines are being completely re-qualified as they restart in Newark to ensure consistent quality.

At this time, we have all of our warehousing and administrative personnel transferred, along with most of the CUBITAINER® production lines. The remaining CUBITAINER® lines are expected to be removed from Baltimore by the end of this month. The HEDLINER®, PAYLINER®, WINLINER® and TOPLINER® manufacturing equipment will remain in Baltimore until the CUBITAINER® lines are fully operational.

We look forward to completing our move and focusing all of our efforts on improvement and innovation.

I thank you again for your continued interest in the Hedwin division, and I look forward to working with you. If you have any questions, please contact us at 800.890.1183

All the best,

Yasuo Iwasa

President, Hedwin Divsion of Zacros America

Executive Vice President, Zacros America