Motion Computing's Official Response to Supply Concerns from the Earthquake in Japan

March 28, 2011

Dear Valued Customer:

The unimaginable destruction caused by the earthquake and Tsunami that occurred March 11th in Japan has had devastating consequences for the nation and its people. Our thoughts are with them and our many friends in Japan who have been impacted by these recent events.

In response to recent customer and partner inquiries, we feel it is necessary to inform you that at this time neither Motion, our major manufacturing partners, or their people located in China and Taiwan have been directly affected. As such, we have confirmed that components, materials and manufacturing capacity are available to meet our forecasted
needs in the near-term. In order to help prepare to meet future needs, we are now in the process of identifying any potential medium-term or long-term impacts.

Specific risk mitigation actions are underway, which include but are not limited to bothsecuring components and commodities, and well as qualifying additional components sources to augment our current approved vendor list. Our component suppliers located in Japan are in the process of doing the same for the items they supply to Motion or our manufacturing partners.
We look forward to your continued business and understanding as we work through the details of this complex situation. As we move forward through the next few weeks and months, we will provide updates in the event there are any changes that will impact our ability to ship to current stated lead-times.

If you have further questions or concerns please don’t hesitate to email myself at jamundson@motioncomputing.com or Mike Stinson, Motion VP of Marketing, atmstinson@motioncomputing.com.