COVID-19 UPDATE

As a valued customer and business partner, I would like to share with you what we are doing to ensure employee safety, the stability of our supply chain, and the capability of our operation to deliver on our production obligations to you.

We have formed the GMT Infectious Disease Incident Management Team (IDIMT), a task force comprised of executive, senior, and front-line leaders from our three plants. This team has developed a set of robust employee health and safety, supply chain risk assessment, and plant operational capacity action plans and policies to ensure we are positioned to minimize disruption and maximize delivery in the event that conditions worsen.

Employee Safety: (Status GREEN)

We have incorporated all federal, state and local recommendations surrounding COVID-19 into our IDIMT Action Plans and corporate policies.

• We have instituted personal hygiene, plant cleanliness, and social distancing protocols to minimize the risk of infectious transmission in the workplace.
• Employees are notified at each plant entrance of current threat levels along with corresponding actions and requirements.
• Daily stand-ups are held at the beginning of each shift to ensure everyone is briefed on current conditions, policies, and best practices. We are also advising all employees on how to minimize their exposure to infectious disease in their personal lives.

We are currently in GREEN status with respect to employee safety with zero confirmed cases of the coronavirus and minimal absenteeism due to illness.

Supply Chain: (Status GREEN)

We have conducted a thorough supply chain risk assessment, including having direct contact with our critical T1 and T2 suppliers to assess their respective risks to fulfill.

• We have adjusted minimum and safety stock levels and have dual-sourcing practices in place where applicable to ensure that we have a reliable and extended supply of raw materials, consumables, and basic business functional needs.
• We are in continuous contact with our supply chain partners and will continue to assess and countermeasure risk on a daily basis.

We are currently in status GREEN with respect to Supply Chain with zero unmitigated high-risk, 90-day supply chain concerns.

Operational Capacity: (Status GREEN)

We are currently running two to three shifts at all three of our plants. We have multiple options to ensure adequate manpower to satisfy both current and potential additional demand.

• With nearly 200 employees and very low overtime use, we have the ability to expand operational capacity by more than 30% leveraging overtime alone.
• Roughly 50% of our workforce is cross-trained on multiple cells and functions, providing a significant level of flexibility to shift capacity if absenteeism rises or if additional demand occurs.
• We also have a bench of contract labor that we can flex into action as well as strategic partners we can leverage should conditions require.

We are currently in status GREEN for Operational Capacity and have the ability to accept additional volume.

We are extremely grateful for your business and appreciate your partnership. We stand ready to serve your current as well as future needs. I truly hope your business and your family remain safe throughout the duration of this global pandemic.

For questions or additional detail on commercial matters, operational capacity or capability, please contact:

Jared Graening
Chief Strategy Officer
(319) 483-4241
Jared_Graening@gmtcorporation.com

Sincerely,
Steve Snedegar, CEO
GMT Corporation