Surge Components, Inc. Sends Letter To Shareholders

The Board of Directors of Surge Components, Inc. ("Surge" or the "Company") (OTC Pink:SPRS), a leading supplier of capacitors, discrete semi-conductors and audible and sounding devices, today sent the following letter to Surge shareholders:

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November 8, 2016

Dear Fellow Shareholders,

At the upcoming Surge Annual Meeting of Shareholders to be held on November 22, 2016, we believe you will face a clear choice between:

1. Supporting your Company's co-founders, Ira Levy and Steve Lubman, as they continue to execute on a successful strategy to drive continued growth at Surge and deliver sustainable, long-term value for you. This successful strategy has delivered strong growth and profitability over the past eight years since 2008, and we expect more growth. This past third quarter alone we delivered a 6.6% year-over-year increase in gross profits and a 25.9% gross profit margin.

OR

2. Backing dissident shareholders Michael Tofias and Bradley Rexroad, whose only stated plan is to quickly sell the Company so that they can exit their positions, while leaving your money on the table. In their own words from their October 25, 2016 letter, " We continue to believe Surge should be sold, preferably to a strategic buyer." Now, in the 11 th hour, they claim to want to "fix" Surge. But they still offer no plan whatsoever. Rexroad and Tofias do not want to manage or "fix" Surge; they want to sell it. The reality remains that their election would serve their own short-term interests while leaving you - our shareholders - with a rudderless Company.

Your Founders :
  • Clear growth strategy: higher margin business, expanding international footprint, capitalizing on industry relationships
  • Each has more than 40 years of industry experience and strong reputations
  • Building long-term value - delivered strong growth and profitability over the past eight years since 2008

The Dissidents:
  • No plan, no industry experience, no public board experience
  • Flip-flopping - quick sale of the Company to "fix Surge"
  • Grasping at straws - citing 20 year old ancient history to make their case

We urge you to support the re-election of Ira Levy and Steve Lubman as directors at the Annual Meeting of Shareholders to be held on November 22, 2016, and we recommend that you disregard incorrect and misleading claims made by dissident shareholders Tofias and Rexroad.