ALL ZOOK EMPLOYEES – April 16, 2020

ZOOK continues to operate successfully as an essential business serving our valued customers. I would like to thank all of you for your commitment and results to serve those customers that ensures safety and reliability with every product and service that we deliver.

During this challenging time, I want to give you an update on the performance of our business.  In prior conversations, I spoke to you about the importance of ZOOK maintaining our critical value stream to ensure the viability of the business.  This value stream is comprised of soliciting new business, quoting customers, entering orders, sourcing raw materials, building, shipping and invoicing products, collecting cash, paying our vendors and paying our employees.  Every ZOOK employee plays a role, and with your support, we will continue to succeed! 

Beginning in late February 2020, ZOOK began to see an improvement in daily orders for both graphite and metal rupture disks.  These orders helped ZOOK achieve a good sales month for March and ensured that April will be successful also.  Orders in early April have slowed probably due to the Easter Holiday, but we expect an improvement in the 2nd half of April.  With daily updates from our global sales and customer service teams, we have learned that new quotations and customer interactions have been very active.  Being the 1st to engage our customers and the 1st to deliver our solutions, ZOOK has built enormous credibility with our customers so that we are the 1st rupture disk supplier that they call when an opportunity arises.   In spite of the challenges impacting the global markets, ZOOK is performing pretty well. 

Our united efforts to prevent and protect our employees from COVID-19 has been successful.  No ZOOK employees have been diagnosed with COVID-19 to date.  Thank you everyone for practicing safe distancing, washing your hands, covering your coughs, calling ahead if you are feeling sick, and staying home as much as you are able when not working. 

While our respective governments have been issuing updates regarding their actions to mitigate and eliminate the risk of exposure and spread of COVID-19, some governments are beginning to discuss a date in which businesses may return to normal.  I want to say to our global employees, ZOOK will be very conservative with our plans to return to normal business practices, which includes having our remote employees return to our global offices. 

First, it is important that we continue to protect both our production and remote office employees and make it a priority not to create any unnecessary risks to our global teams. When we decided to separate our production and office staff, our actions were intended to limit potential exposure due to typical interactions.  Our priority is the safety and well-being of our production and remote office employees in order to ensure the viability of our business and eliminate any interruptions to serve our global customers.

Second, we have confirmed that ZOOK can maintain the critical value stream and serve our customers. While a vaccine for this virus may be months away, we are ok with easing back to the offices to minimize any risks.  As global conditions improve, we will share a plan with you on how and when ZOOK will return to normal business practices, which will include our employees returning to our global offices.   Regardless of any updates that you may hear from your respective local, regional, and country governments, I would not expect the process of returning to normal business practices at ZOOK to begin before mid to late May 2020.   As new information becomes available or any changes, we will provide further updates about ZOOK and our plan and schedule to return to normal business practices.

Thank you again for your continued supportcommitment, and passion for all things ZOOK.  Take care, be safe, and blessing to you and your families.

Regards,

Greg

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