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February 28, 2020

Dear SIGMA Customer,

Re: Update on Coronavirus impact on our supply chain

As we have received widespread requests for any guidance we could provide on the impact of the Coronavir
on our operations and specifically on the availability of our product range, we wish to share this update with

First, we join our entire country in wishing the people and authorities in China and elsewhere speedy succes
in containing and hopefully eradicating the disease.

At the outset, the situation continues to be fluid and extremely unpredictable and, for the most part, we too a
following any and all published information and updates.

However, we have received a constant update as to the status of actual production and logistics surrounding
our extensive supply chain operations in China. So, here is a summary of our findings:

• As the outbreak of the disease happened to coincide with the annual long Chinese New Year holiday
we did not lose any significant production due to this coincidence. However, the resumption of our
production operations got delayed by a varying length of time, at our different production facilities. Bu
most of our production facilities have now resumed production although not all are at 100% capacity

• The transport system has been disrupted to varying extents, depending on the port out of which
products are shipped out. The truck transportation was intentionally limited thus delaying shipment of
raw materials to the production facilities as well as finished goods from them to the port. However,
transportation both within China and transpacific has resumed. Each week since early February has
led to a more normalized flow of products.

• We have a significant part of our production of one of our core products, Fittings, outside China and
supply chain is not affected by this challenge. However, we have committed our supply chain month
ahead and we are not in a position to adjust our commitments due to short-term aberrations.

• At this time, despite a fairly healthy supply chain thus far and limited disruption of our current planned
shipments, we do expect some delays in some of our shipments, which may result in short-term
outages of some of our line items.

Therefore, we request you to appreciate the uncertainty and pressures this unprecedented global challenge
has injected in our business. We also request you to contact your SIGMA TSM to discuss your future
requirements as we can best collectively plan for Spring market demands.

We thank you for your patience and as always, deeply appreciate your business and trust in SIGMA.


Greg Fox | VP of Sales
SIGMA Corporation