Supply Chain Update – Impact of Japan

Dear Valued Customer,

Many customers have asked how Isola is affected by the natural disasters that occurred in Japan on March
11th. Based on information provided to us from our supply chain partners, we expect to have only a few
minor near-term disruptions, and we believe that we have adequate inventories of critical materials to get
us through the near-term turbulence. All of our products are currently available, and we anticipate no
shortages. The planned introduction of new products by our advanced technology team will proceed
without any disruptions within the supply chain.

The following is a brief update on the situation for each of our key raw materials:

Glass Fabric: While inventories of glass fabric and the availability of yarn are stable at this time, we
continue to closely monitor the situation. Isola has long-standing supply arrangements with vertically
integrated suppliers, as well as our own internal weaving capabilities, which should mitigate any problems
of supply for glass fabric.

Epoxy Resin: Although we source some BT resin from a supplier in Japan, this is not a major component
for us, and we have sufficient inventory on hand to meet historical levels of demand through mid-May.
Our other epoxy resin suppliers have not been impacted. We have adequate inventories, as well as strategic
supply arrangements with our key resin suppliers.

Copper Foil: Our suppliers produce copper foil in a number of countries. We are working closely with
them to insure continuity of supply. Between the promised supplier support and our inventory position, we
do not anticipate production disruptions due to shortages of copper foil.

Our Global Supply Chain Management team reviews the situation daily. The situation is very fluid at the
moment and many variables, such as the availability in Japan of logistics and electric power, are not fully
under our supply partners’ control. All reports from Japan, however, suggest that the situation there is
improving. We will, of course, keep you informed as the supply situation changes.

Our heartfelt concerns and support go out to all of the Japanese people who have endured so much
suffering since the earthquake and the aftermath disasters.

Ray Sharpe

President and Chief Executive Officer
lsola Group

24 March 2011

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