Advantages of
Costa Rica

• Availability of a highly educated, versatile and productive work force with direct Labor costs approximately 80% lower than U.S.

• Close proximity to and same time zone as U.S.-based customers

• Numerous incentives to foreign investment

   - Exemption on import duties, profits and export, local sales,
     excise, municipal and capital taxes

   - No restrictions on capital repatriation or foreign currency management

   - Subsidized training programs

• Export-oriented infrastructure and good logistical access to U.S. market

• Political, economic and social stability

• Strong legal protection of intellectual property

Rationale for Low-Cost Facility

• Access to segments that are mature and highly competitive
or that have high labor content

• Provide customers with natural, long term, cost reduction option for products initially manufactured at our U.S. locations

• Medical Device OEMs are relocating to Costa Rica and seeking local, qualified, vendors

• U.S. OEMs are interested in transferring mature assembly and production lines to qualified contract manufacturers in low cost countries