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Situation Japan

December 16, 2011

Many of our customers are asking us for a statement outlining the impact of the earthquake as well as the tsunami on the VAT supply chain and more specificially whether VAT will be able to meet delivery commitments. VAT has no manufacturing facilities in Japan and any parts that we do source from Japan are minimal in scope and should be readily sourced from alternative suppliers if required. We consider the

Information to customers & business partners

General Situation

Many of our customers are asking us for a statement outlining the impact of the earthquake as well as the tsunami on the VAT supply chain and more specificially whether VAT will be able to meet delivery commitments. VAT has no manufacturing facilities in Japan and any parts that we do source from Japan are minimal in scope and should be readily sourced from alternative suppliers if required. We consider the current radiation level as uncritical in terms of both the safety of our employees as well as the function of our products. We are closely monitoring the situation and in case of any change we will take the appropriate measures.

Supply chain

Our few suppliers in Japan are working mostly under restrained conditions facing power outages and limited transportation capabilities. However, current supplies from Japan including our own inventories will last until middle of September. Therefore we expect there will be no impact to current orders or our ability to meet delivery commitments to our customers based on current knowledge. VAT Global supply chain management is daily monitoring dependencies with Japan and will set up appropriate measures.

Going forward

VAT Headquarters has established a Task-Force which is cooperating closely with the management team in Japan. The Task Force will monitor continuously the situation and take appropriate measures and actions. You will be informed by the Task Force in case of any change of the situation.