David Raby, President/CEO, STI Electronics

We expect slow but steady growth in the semiconductor market and other tech sectors with stronger growth in the LED and printed electronics market segments. Solar installations will continue growing but manufacturing will struggle with restructuring and consolidation in 2013 due to overcapacity.

We see great potential in emerging photovoltaic technologies including back contact MWT, IBC and HIT module designs. Thin film is struggling but the stronger, more innovative players should survive and prosper over time, especially those involved in BIPV.

Engineered Materials Systems, Inc. (EMS) and Engineered Conductive materials, Ltd.(ECM - now a product line) were acquired by Nagase & Co., Ltd. in January of 2012. Integration of the EMS/ECM business into the Nagase global business has been progressing quite well and we have been developing and implementing a global marketing and sales strategy to leverage the strengths of the two organizations.

In 2012 we opened a new manufacturing facility in Delaware, Ohio to accommodate our expanding electronic materials business in the printed electronics, semiconductor and solar markets.

In 2013 we expect to continue adding staff to our Research & Development, Manufacturing and Quality Assurance groups to support new business and new business development opportunities. Overall we expect to have a great year with strong sales growth across our core markets.