COPYRIGHT 2011 OCM MANUFACTURING INC. ALL RIGHTS RESERVED. TERMS OF USE / PRIVACY STATEMENT.

OCM Global Product Design,

Manufacturing & Logistics Solutions

January 2011

Overview

Business Model

Services

Capabilities & Capacity

Quality and Best Practices

Target Markets

Teams (Canada & China)

Joint Ventures & Co-operation Logistics

Warehousing & Order Fulfillment

Our History

A Few Customers

Corporate Citizenship

Business Model

Full range of manufacturing and supply chain services for niche markets

• ~50-10,000-piece batches

• Targeted clients with $500,000 -$5,000,000- in production/year

• Canada, U.S. and Europe

Value-add programs

• Turnkey manufacturing

• Design for Manufacturability (DFM)

• Lead (Pb) Free Transition Program

• Integrated Asian outsourcing

Focus on service innovation leadership

• Give clients access to all the benefits that high-volume manufacturers can expect

Services – Our Value ChainPHASE 1:

Development support and design services

Document review & process integration

Materials sourcing (PCB’s, components, fabrication, wires/cables, custom plastics, metals & other materials)

PHASE 2:

Manufacturing/assembly & testing

DFM/DFA feedback & manufacturability assessment

Quality control

PHASE 3:

Ocean freight to ports in target markets

Inland shipping to warehousing/fulfillment centers

Stocking, inventory control, re-order triggers (production)

Order receipt & fulfillment/unit parcel delivery to end customers

Reverse logistics for defect evaluation & disposition

Capabilities Overview

High-mix assembly & test

Electro-mechanical assembly & interconnect

System/sub-system integration (box-build)

DFM/DFA consultations (manufacturability assessment & feedback)

Materials supply chain management (components, PCBs, enclosures, cabling, fabricated & custom parts)

Global, regional and local logistics/fulfillment

After-market services (assessment, trouble-shooting, repairs, refurbishment)

SMT Capabilities Details (Canada)

Advanced surface mount technology (SMT) lines

• Siemens Siplace HF Series (x2)

• Siemens S20 chip shooters (x2)

• Siemens F5 flex machine

Quality assembly for BGA/uBGA, ultra-fine pitch

(UFP) devices and 0402 chip packages (0201

capability scheduled for FY2011)

Speedline Ultraflex 3000 Stencil Printer

Ersa Hotflow 3/20 Reflow Oven (x2)

Materials supply chain management via Visual ERP and strong, long-standing supplier relationships

Pin through hole (PTH) technology

SMT Capabilities Details (China)

BGA Rework StationZM-R590ZHUOMAO

Automatic Optics

Instrument

VT-RNS-PT-

HOMRON

Wave soldering machineSAC-3JS SUNEAST

Surface Mount MachineYG12FYamaha

Surface Mount MachineYG12Yamaha

Surface Mount MachineRS 380AUTOTRO

NIK

Auto printing machineG3SUNEAST

Auto printing machineSEM-300SUNEAST

Reflow ovenGENESISI

608SUNEAST

Capabilities OverviewValue-added

Lead-free process• Lead-free SMT line, washing equipment and processes • Lead-free PTH line • Lead-free processes; staff trained to IPC-A-610-D

workmanship standards, as well as rework and repair standards (IPC 7711 and 7721)

• Certified IPC trainer on staff

Integrated Asian outsourcing• Chinese resources “on the ground”• Oversight and quality process by OCM HQ• Regular audits to ensure quality consistency• 100% quality on all China orders to date

Design services available in Canada and China –include

• Electronic & mechanical engineering• Industrial design• PCB design/layout• FPGA development• System & sub-system design & development

Test and Quality Assurance

Functional test infrastructure

• Automated FT Systems

• Wide variety of instruments for manual FT

• Custom test strategy & design

Automated optical inspection (AOI)

X-ray inspection system

100% inspection on all products

Quality Record at OCM

Policy to deliver defect-free products on time

• Currently shipping 5 sigma quality (99.5% defect-free assemblies)

Bar-coding system tracks every product from start to finish

Strategy for quality:• Quality-focused culture

“Paperless” quality system

• Stable and experienced workforceLow turnover and ongoing training

IPC-A-610D trained staff

• ISO 9000-2008 registration

• Continuous improvement methods

100% quality on all China orders to date

Our Team…in Canada

Dr. Michel Jullian - President & CEOFounded OCM Manufacturing in September 1988 after managing the product development department at the Ontario Centre for Microelectronics, a centre of excellence created by the Ontario Government to foster chip-manufacturing capabilities in the area. Prior to that, he held various Design Engineering roles at the Industrial Applications of Microelectronics Centre in Winnipeg, Manitoba, in France and abroad.Michel is author and co-author of more than 27 technical reports and professional publications in both French and English, and has taught software engineering and microprocessing in Canada and the Philippines.

George Henning - VP, ManufacturingJoined OCM Manufacturing in 1995 and has seen the company through lead-free certification, ISO 9000 registration, implementation of a new ERP system and several production automation upgrades. Prior to joining OCM, George worked for Celestica Inc., a Tier-1 global electronics manufacturing services (EMS) provider. He is a graduate of the Electronics Engineering Technology program at Georgian College and received an MBA from Queen's University in 2007.

Steven Woodard - Program Manager (CEPM)Joined OCM in 1998. As Program Manager, Steven oversees client projects and programs, and designs strategies for new business development. Steven focuses on working closely with customers to create unique solutions for their needs.Prior to OCM, Steven worked as a customer service representative at several local mid-market businesses. Steven actively upgrades his skills and received his certification as an EMS Program Manager from IPC.

Jamie Barnhardt - Program Manager (CEPM)Joined OCM as Program Manager in 2000. He oversees client projects and programs and designs strategies to provide ever-greater value to OCM customers.Jamie has taken a leadership role in advancing OCM’s unique managed off shoring business model and was responsible for transitioning OCM’s first full turnkey project to China. That project solidified the business model and has created a platform for OCM to further expand its offering.

Kenneth Roots - Business Consultant – New MarketsKen has a 23-year background in business development and management, with 13 of those years cultivating a full portfolio of full-spectrum, international OEM/ODM solutions. Ken’s work with OCM began in 1998 when he kick-started the company’s turnkey EMS division, and positioned OCM as an original member of the Sparton Alliance, a seven-member, $400-million manufacturing network with participating companies across North America and Europe.

Our Footprint in China

OCM’s Chinese operation is a Wholly Owned Foreign Enterprise (WOFE) product development and manufacturing firm with high-technology based in South China.

Our research and production centers are geared for small batch and customized products with very high quality as well as moderately large batch production with high quality requirements.

We offer end-to-end outsourcing solutions for product design, prototyping, plastic injection molding, printed circuit boards (PCBs) , manufacturing, assembly, packaging and shipping.

Our valued staff: Manufacturing, R&D and Administration

Our Team…in China

Leo Lin - General ManagerMr. Lin received his Bachelor's Degree in Mechanical Engineering from Tsing-Hua University in China. He has worked for multinational companies in China over the past 15 years as a mechanical engineer and production manager. Mr. Lin is proficient in production management, commercial negotiation, and quality control. He is currently responsible for all aspects of production operational management.

Ying Miao - Managing DirectorMs Miao has more than 20 years of experience in operations management, business development, and system implementation. Since 1994, she has worked to set up business operations for multinational and offshore investment companies in Asia. She is currently responsible for overall business operations and performance.

Jackson Ma - Manager, Product DevelopmentMr. Ma has 12 years of experience in the development of automotive audio, video, GPS systems and various wireless communication products, and has been an R&D Manager since 2001. His strong analytical, problem-solving, organizational and interpersonal skills all help to ensure that new products meet the required internal and external quality control standards before their release. Major customers he serves include Sony, C-Cube, Philips and Toshiba.

Cyril McDowall - Senior Business ConsultantMr. McDowall has more than 30 years of experience in business development, project management, systems integration, and software and application development. Since 1997 he has setup branch offices and research and development facilities in Asia for multinational companies and offshore investment companies. He is currently working to implement continuous business processes improvement methods.

Partnerships for Success

OCM Manufacturing Inc.R&D, Materials Sourcing, Manufacturing, Quality ControlProgram Management & Oversight, Logistics, Order Fulfillment, Service CenterOttawa, Canada – serving Canada, USA, EUZhuhai, China – serving China, Taiwan, Macau, EU

TradeLink InternationalFreight Forwarding, Overseas LogisticsHamilton, Canada – Serving China, Japan, Korea, Europe, North America, South America, Africa,

Australia,New Zealand, Mediterranean, Middle East

Rocateq InternationalRegional Logistics, Order Fulfillment, Service CenterRotterdam, Netherlands – warehouses & service centers in Netherlands, Spain, Germany & Hungary

forthe European continent & the U.K.

Ottawa LogisticsWarehousing, Order Fulfillment, Reverse LogisticsOttawa, Canada – serving Canada, USA

Sonwil WarehousingWarehousing, Order Fulfillment, Reverse Logistics, Service CenterBuffalo, NY – serving USA, Canada

QLS (Vic) Pty LtdRegional Logistics, Warehousing, Order FulfillmentSydney, Australia – serving Sydney, Brisbane, Melbourne, Perth, Tasmania

Fulfillment Service ModelPhase 1 – Manufacturing & Freight

Canada

USA European Union

Australia

Chinese Market

CUSTOMER

Fulfillment Service ModelPhase 2 – Warehousing & Order Fulfillment

Target markets

Demand (pull)

Sales Channel

Chinese market

Demand (pull)

China Sales

Channel

CUSTOMER

OCM History

Founded by Michel Jullian in 1988

Privately held and self-financed

Initial focus was on product design (80%) with some manufacturing (20%) with 2 large companies – Husky Injection and GE Fanuc

1995: Purchased 7,500 sq.ft. facility plus leased 4,000 adjacent sq.ft.

1999: Refocused on manufacturing services for low- to mid-volume products.

Michel Jullian,

President & CEO

History (cont’d)

2003: Asian sourcing option launched

2004: Rebranded OCM Manufacturing; launched QuickStart, and Lead (Pb) Free programs

2006: Fully lead-free capable

2007: Expansion of Asian operation to include high-volume/low-mix assembly and test.

2010: Ottawa facility expansion will double capacity to two lines (4 shifts)

2010-2011: Lean Manufacturing principles introduced and implemented

2011: Legal entity formed in China for integrated operations administered by Canadian HQ

Michel Jullian,

President & CEO

Today…

Profitable company running 2 shifts to meet current demand (45 employees)Annual revenue run rate of $10M CdnSuccessful transition from product design (20%) � stronger manufacturing focus (80%)

Established customer base • (currently 40 customers across 8 sectors)

Solid order pipeline22,000 sq.ft. facilityISO 9001-2008 registeredConsistently operating at 5.5 to 5.7-sigmaquality levelsEfficient use of ERP system (Visual Enterprise)

Projected growth for 2011-2015 is 50% per year based on new projects in cleantech

Established, profitable and positioned for growth

Some of Our Customers…

• GE Fanuc• Husky Injection Moulding• Allan–Vanguard (Med-Eng

Systems)• Kavveri Telecom• PixeLink• Energate Systems• Control Microsystems• Orica• Terrapin Communications• Mechron Energy• JSI Telecom• Light Machinery (Lumonics)• Wireless Edge• Oil & Gas Instruments

Allan Vanguard (Med Eng Systems)

Complete electronics for line of explosive protecting personal equipment

Project began with product development, engineering, verification and test

Currently 8,000 units – 20 products

Customer since 2001

PixeLINK

Electronics for digital cameras for machine vision, scientific and industrial applications

Currently 10,000 units – 50 products

Customer since 2004

Terrapin

Electronics for Safety Turtle® pool safety devices

Currently 20000 units – 3 products

Customer since 2002

Transitioned to China in FY2008

Industry & Community Involvement

Canadian Electronics Magazine: Board of Directors

Innovators’ Alliance: Board of Directors

IPC: Member

SME – Society of Manufacturing Engineers

Ottawa Manufacturers’ Network: Chairman, Board of Directors

Ottawa Wireless Cluster: Member

Wireless Industry Partnership: Member

TiE (The Indus Entrepreneurs): Member

Each year, OCM donates 2% of its profits to charity

COPYRIGHT 2011 OCM MANUFACTURING INC. ALL RIGHTS RESERVED. TERMS OF USE / PRIVACY STATEMENT.

Thank You!