Esteemed Customers:

With respect to the suit filed by a Japanese company “Mitsubishi Chemical Corporation” (hereafter referred to as MCC) against SHIELD over alleged patents

infringement regarding LED red phosphor, SHIELD hereby releases a statement as follows:

1.Yantai Shield Advanced Materials Co.,Ltd., a China-based company recognized as a prominent LED phosphor supplier, respects Intellectual Property and also strictly obeys all laws and regulations of the People’s Republic of China.

2.SHIELD has developed its LED red phosphor and will vigorously defend ourselves. We had filed three petitions to Board of Patent Appeals and Interferences of China Intellectual Property Bureau on Jul 2nd,2015, seeking to challenge the validity of three patents(ZL200480040967.7、ZL200710199440.4、ZL201110066517.7).

3.As jurisdiction objection has been raised, and this case has not been heard in court, SHIELD has not been delivered any injunction from any verdict or ruling of court against the continued sales of LED red phosphor products. MCC’s claim, alleging that SHIELD had infringed its asserted patents, is legally unsubstantiated and thus their advertisements are suspected of misleading clients and unfair competition. We take exception to any irrational and malicious competitions and will continue updating our products and offering high class services to our clients.

We reserve the right to pursue legal responsibility for any malicious damage to the reputation of our company.

Regards

Yantai Shield Advanced Materials Co.,Ltd. 　　

July 9th, 2015