Additionally to our commitment to eliminate conflict materials from our supply chain AVX recognized that a de facto embargo of DRC and Central African ore would create widespread hardship for the locals whose livelihood depends on the mines.

Consequently in July 2011, AVX partnered with Motorola Solutions to establish the flagship Solutions for Hope closed-pipe pilot program. The Solutions for Hope program, which has since been strengthened by the support of other leading electronics firms, including HP and Intel, was designed to enable the DRC and its neighboring countries to return to the supply chain as validated conflict-free suppliers, to the benefit of the all the local peoples that depend on the mining industry.

The year-long program has demonstrated that verifiable conflict-free tantalum ore can be mined and shipped in a manner that is reliable, sustainable and expandable. This allows a third-party verified “closed pipe” supply route in the Democratic Republic of Congo (“DRC”) using EICC/GeSI validated conflict-free smelters to become a trusted source of conflict-free minerals to the tantalum industry.

The closed pipe supply chain will enable AVX to have full traceability of its usage of DRC and other Central African material and the supporting chain of custody information to confirm the material is verified as conflict free to enable customers to meet the requirements of the Dodd-Frank legislation and the anticipated SEC disclosure requirements. As such, AVX will begin to incorporate independently audited, fully traceable, and verified conflict-free ITRI Tin Supply Chain Initiative (iTSCi) “Bag and Tag” tantalum material, sourced through AVX-approved, closed-pipe supply routes in the Democratic Republic of Congo (DRC) and adjoining Central African countries, into its general SMD tantalum capacitor products beginning January 1, 2013.

AVX will have full traceability of its usage of DRC and other Central African material and the supporting chain of custody information to confirm the material is verified as conflict free to enable customers to meet the requirements of the Dodd-Frank legislation and the anticipated SEC disclosure requirements.

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