SIERRA PACIFIC ENGINEERING AND PRODUCTS

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2 Company Profile Established in 1986 Became 100% ESOP (employee-owned) in December 2005

3 Company Profile Corporate office in Los Angeles Warehouse & sales offices in Chicago and Dallas

4 Company Profile SPEP HK Limited established in Hong Kong in 2006 Sourcing & QA office in Jiaxing, China

5 SPEP Philosophy Quality products at truly competitive prices Proven off-shore sources since 1987 Top-notch quality program (ISO) since 2001 Eco-friendly paperless culture

6 Sales Effort Six full-time inside sales staff Over 55 years of experience with SPEP

7 Sales Effort Six full-time inside sales staff Provide top-notch service 99.5% of surveyed customers would recommend SPEP as a supplier

8 Sales Effort Current catalog introduced in Nov pages with over 3000 parts

9 Power of Oracle Oracle implemented in 1998 Accounting, MRP, Order Management, Inventory and Sales Oracle allows customers to access their account information via a customer portal Open/shipped orders, sales history for each part going back 12 years, etc.

10 Power of Oracle Quotation, EDI, XML Sales acknowledgement on every order Ship notification after every order ships

11 Power of Oracle Quality Instant access to most current drawings for production and inspection needs Quality inspection data retention Internal and supply management QA portal Change order and corrective action processes Supplier facilities ranking survey

12 Design/Engineering SPEP utilizes the latest Solidworks (2010) CAD software Drafting, Technical Drawings Modeling & Assembly, Motion Simulation Finite Element Analysis (FEA) (CosmosWorks) PDMWorks Data & File Mgmt ** Click image to open SPEP Design Guide

13 Rapid Prototyping Multi-Platform CAD conversion capability via 3D PartStream CATIA, Pro-E, UG / I-DEAS, IGES, STEP,... Up-front CAE philosophy for rapid design & product development Rapid Prototyping (In-house FDM machine)

14 Quality Assurance & Approval Achieved ISO 9001 certification in 2001 Current certification: ISO 9001:2008 Production Part Approval Process (PPAP) capability (as required by customer) Experience with automotive accounts Spare tire latch on H2 Hummer Latch systems for ATV s Electronic enclosure hinge Customer APQP, CAR Processes 8D, 7 Step,...

15 Quality Assurance & Approval Quality Inspection Calibrated Inspection Processes Digital & Optical Methods Attribute, GO / NO-GO Gaging Specialty Fixture (In-house salt spray testing) In-House & 3rd party validation/certification Structural (OEM, MIL Spec, ) Environmental (ASTM Salt Spray) Metallurgical / Chemical Composition

16 Joint Customer Development Automotive Pivot Latch (example) Design, modeling, & assembly of automotive pivot latch for GM Hummer H2 spare tire carrier Full PPAP Level 3 approval processes Technical drawing & customer data exchange Full range of motion study for latching engagement APQP, production launch, Multi-process coating system Zinc phosphating, electrocoat Decorative powdercoating Durability & weathering testing Appearance Approval Report (AAR)

17 Joint Customer Development Automotive Pivot Latch (example) ** Click image to run simulation

18 Joint Customer Development Motorcycle Hard Bag Hinge (example) Designed stamped stainless steel hinge for Harley-Davidson Heritage Softail Customer original product utilized die cast hinge made by Honda, subsequently machined & fabricated for custom use Customer part was extremely expensive, labor intensive, & long lead time SPEP designed a formed stamped hinge & prototyped to verify function and range of motion New hinge assembly provided increased strength, time/labor & cost savings Hinge assembly is full 304SS stainless steel, with bright electropolished finish Part has been in successful production since May 2001 Note: SPEP also makes push button slam latches & luggage latches for applicable use

19 Joint Customer Development Motorcycle Hard Bag Hinge (example)

20 Joint Customer Development Automotive Toolbox Locking System (example) Designed Double Action Push Button Lock & Rotary Latch System Push button lock units are completely water sealed & leak tested -made of die cast zinc & stainless steel, with various black & chrome plated component finishes Dual rotary latch mechanisms for lid engagement aluminum, zinc plated steel Prototyping & rigorous functional testing conducted during development SPEP holds three (3) U.S. Utility Patents for these locking components & system -- issued 2004 Fulfilled Customer Validation & Sign-Off Processes Locking system has been in successful production since August 2005

21 Joint Customer Development Automotive Toolbox Locking System (example)

22 Joint Customer Development Electronic Enclosure Hinge (example) Designed formed lift-off hinge for electronic enclosure & server storage Enclosure offset & full 270 degree range of motion study required Interference detection done to determine door swing closure & rivet fastening clearance FEA processes utilized to determine & establish hung weight capacities Fulfilled customer validation & sign-off processes Successful production launch

23 Joint Customer Development Electronic Enclosure Hinge (example)

24 Thank you for considering SPEP! To get additional information please visit our website at or Contact our sales department at (800)

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