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MERIX CORPORATIONYOUR COMPLETE CIRCUIT BOARD SOLUTION

October 2008October 2008

Defense & Aerospace Overview

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Merix is Structured for Def/Aero Work

• Security– ITAR Compliant

• Quality– IPC-6012 Class II and III– MIL-P-55110– MIL-PRF-31032 – Continuous improvement and focus on reliability

• Manufacturing– Factory floor online management– Part traceability

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How do we differentiate in Def/Aero?

• Advanced Technology– HDI structures, Via-fill, Cu fill and Stacked micro-vias – High performance materials expertise– Embedded Passives

• 2 mil, 1 mil and sub-1 mil embedded capacitance• Buried resistor technology

• Engineering Commitment and Support– Field Applications Engineering– Factory DFM Support – Robust DFM Reviews

• Superior Product Reliability, Quality– PCQR^2 (for GE) – Design 18R-D, Submission Code I11– PCQR^2 (For DAUG) – Design 14R-D, 24R-D, Submission

Code H25, H29

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Merix North American Facilities • Merix - Forest Grove, OR

– Advance Technology, High Layer Count & HDI solutions

– 5-10 day QTA, production– 250,000 sq. ft.– RF & Microwave products– Thermal management solutions– Defense/Aerospace, ITAR– MIL-PRF-31032 (Nov-08)– ISO 9001 and ISO 14001 certified

• Merix - San Jose, CA– QTA/NPI Prototype specialists– 40,000 sq. ft.– 24 – 72 hour turn times– MIL-PRF-55110– MIL-PRF-31032, ITAR – ISO 9001 certified

Forest Grove, OR

San Jose, CA

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Closed Loop, Customer Focused, Process Control Based SystemClosed Loop, Customer Focused, Process Control Based System

• Contract Review • Specification Analysis• DFM• Quality Planning• Reliability• Lessons Learned• Design Rules• Produce ability Analysis • NPI Process • Packaging Planning

• Initial Assessment• Terms & Conditions• Flow down• Change Control• Commodity Thresholds• Process Control / Audits• RCCA• Business Reviews• Scorecards• Quality Impr. Plans• COPQ Cost Recovery

• Mfg. Process Standards• IT Solutions tools (ex.

Oracle ERP; dynamic, automated, performance rule based traveler generator; TrueChem; FMEA-Pro; MiniTab)

• Training, Certification• PFMEA, GR&R, Control

Plans, SPC, Process Capabilities Reviews (AS9103 compliant)

• Process Audits• Preventive Maintenance• Lab analysis• RCCA• Kaizen, visual workplace

• Real-Time defects Tracking & Reporting MES (COLT)• Yield Reduction management• Troubleshooting• RCCA• Metallurgical and Reliability Lab Analysis• SPC• Final and Out of Box Audits• First Article Inspection (AS9102 compliant)

• Warranty• Product Tracking and Traceability• Cosmetic standards• RMA process• 8D RCCA• Business Reviews and QIP plans• Customer Complaints• Customer Satisfaction Surveys• Benchmarking

Step Improvement Feedback LoopStep Improvement Feedback Loop

SupplierQuality

DesignQuality

ProcessQuality

ProductQuality

CustomerQuality

Product Life Cycle Quality Management System

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Our goal is to grow DEF/AERO business rapidly Target >25% of Merix-US Sales for FY09

FY2008 (end May ’08), % of Merix-US Sales

DEFENSE/AEROSPACE 15%

COMMERCIAL85%

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Defense/Aerospace Capabilities

Merix OregonNumber of

Conductive Layers

Number of

Conductive Layers

Material Type MaterialVolume

ProductionControlled Production

HDINon-Conductive Via Fill

2 point Etchback

3 point Etchback

170 Tg Epoxy FR406 2-30 32-40 Types I, II, III Yes Yes Yes

Low Loss FR408 2-30 32-40 Types I, II, III Yes YesIn

Development 2008

Advanced Low Loss

N4000-13 2-30 32-40 Types I, II, III Yes YesIn

Development 2008

Lead Free 170 Tg

PCL370HR 2-30 32-40 Types I, II, III Yes Yes Yes

Low Loss

Lead FreeFR408, N4000-13EP

2-30 32-40 Types I, II, III Yes YesIn

Development 2008

Polyimide Isola P-952-30

0.125”max

2-30

0.125”maxTypes I, II, III Yes Yes Yes

Complete facilities capability available at: http://www.merix.com/files/merix_capabilities.pdf

* Other Lead free, Halogen free, ZBC and RF materials available in production or leading edge quantities

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Defense/Aerospace Capabilities

Merix Oregon Complete facilities capability available at: http://www.merix.com/files/merix_capabilities.pdf

Volume Production

Class A

Controlled Production

Class B

Panel Sizes 18X24

21X2416X18

Maximum Thickness .270” .270”

Minimum Thickness .017” .015”

Aspect Ratio (.010 drill) 14:1 16:1

Innerlayer Line/Space .003”/.0035” .003”/.003”

Outerlayer Line/Space .0035”/.004” .0035”/.0035”

Robotic TDR Yes Yes

UV Via Cap Yes Yes

Copper Filled Micro Via Yes Yes

Cavity Designs Yes Yes

Soldermask Min Dam .002 .002

Soldermask Min Clearance

.002 .002

Mil-PRF-31032 November 2008

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Defense/Aerospace Capabilities

Merix San JoseNumber of

Conductive Layers

Number of

Conductive Layers

Material Type MaterialVolume

ProductionControlled Production

HDINon-

Conductive Via Fill

2 point Etchback

3 point Etchback

170 Tg Epoxy FR406 NA 2-30 Types I, II Yes Yes Yes

Low Loss FR408 NA 2-30 Types I, II Yes Yes Yes

Advanced Low Loss

N4000-13 NA 2-30 Types I, II Yes Yes Yes

Lead Free 170 Tg

IS410, PCL370HR

NA 2-30 Types I, II Yes Yes Yes

Low Loss

Lead FreeFR408, N4000-13EP

NA 2-30 Types I, II Yes Yes Yes

Polyimide Isola P-95 NA 2-30Types I, II Yes Yes Yes

Complete facilities capability available at: http://www.merix.com/files/merix_capabilities.pdf

* Other Lead free, Halogen free, ZBC and RF materials available in production or leading edge quantities

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Defense/Aerospace Capabilities

Merix San Jose Complete facilities capability available at: http://www.merix.com/files/merix_capabilities.pdf

Volume Production

Class A

Controlled Production

Class B

Panel Sizes 18X24

21X2416X18

Maximum Thickness .240 .250”

Minimum Thickness .025 .025

Aspect Ratio (.010 drill) 10:1 12:1

Innerlayer Line/Space .003/.0035 .003”/.003”

Outerlayer Line/Space .0035”/.004” .0035”/.0035”

Robotic TDR Yes Yes

UV Via Cap Yes Yes

Copper Filled Micro Via No No

Cavity Designs No No

Soldermask Min Dam .003 .003

Soldermask Min Clearance

.002 .002

Mil-PRF-55110 and Mil-PRF-31032 Certified

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Key Defense and Aero Programs

• Merix is partnered with multiple defense and aerospace customers to provide superior quality to end users on a wide variety of critical programs

• Our products serve both military and civilian users

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Rockwell Collins PCB Supplier of the Year Three Consecutive Years

“We are pleased to acknowledge the significant contributions made this year by Merix Corporation. This award is based upon quality, lead-time, total cost of ownership, and customer service. This is the second consecutive year Merix has been a recipient of this award.”

– Clay Jones, Chairman, President & CEO, Rockwell Collins (2006 award ceremony)

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Defense Program – DAGR

End User

Customer

Our Products

Application

Defense Advanced GPS Receiver

Printed Circuit Boards

•10 Layers

•Microvia technology

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Defense Program - TOCNET

End Users

Customer

Our Products

Application

Tactical Communications

Printed Circuit Boards

•IPC Class II

•4-14 layer

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Defense Program – MBITR

End User

Customer

Our Products

Application

Multiband Intra-Team Handheld Radio

Printed Circuit Boards

•8-12 layer

•Blind via

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Aerospace Program – B787 Dreamliner

End Users

Customers

Our Product

Application

Dreamliner Flight Deck Electronics

Printed Circuit Boards

•10-20 Layers

•IPC Class III

•High reliability

•Embedded Passives

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Defense Program – Falcon III

End User

Customer

Our Products

Application

Falcon III Tactical Radio

Printed Circuit Boards

•2-16 layers

•Blind, buried and microvias

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Defense Program – Appliqué

End User

Customer

Our Products

Application

Appliqué Computer System

Printed Circuit Boards

•Class III

•2-12 layers

•Positive etchback

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Summary of Strengths• Focus on Quality and Reliability• Multiple Facilities for Multiple Solutions• Systems and Certifications to Support the Market

Requirements• Pursuit of Advanced Technology to Grow with

Customers Needs• Involved Engineering Support to Ensure Design

Cost Effectiveness and Producibility

Seamless Global PCB Manufacturing with Seamless Support of the Defense and

Aerospace Community