of Technology Recycling The 3 Immutable Laws of Technology Recycling Preserving Value; Managing Risk Redemtech provides end-of-life technology disposition and retirement solutions to large corporations in all 50 states, in Canada, the UK and Europe. We are a wholly-owned subsidiary of Micro Electronics, a twenty-three year old technology organization, and one of the largest privately-held companies in the United States. Other subsidiaries include Micro Center, the Ultimate Computer store, and Winbook, the award-winning notebook computer company. CleanMed 2004 Copyright 2003 | Redemtech, Inc. copyright 2003 Redemtech, Inc.

Copyright 2003 | Redemtech, Inc. Best Use is Highest Use Redeployment Resale Donation Parts Recovery Recycling Increasing Value Copyright 2003 | Redemtech, Inc.

Everything is Hazardous CRTs—leaded glass Printed circuits Batteries Regulated under the Resource Conservation Recovery Act (RCRA) Materials are exempt if NOT landfilled. Copyright 2003 | Redemtech, Inc.

Copyright 2003 | Redemtech, Inc. Risk Trumps Cost Data Security / HIPAA Environmental Disposal Public Scrutiny Copyright 2003 | Redemtech, Inc.

4 Essential Best Practices Centralize (process) Sanitize (data) Scrutinize (disposition) Budget Every end-of-life procedure should include these five Best Practices: Centralize and standardize the process of technology retirement to ensure compliance with established standards. A fragmented process will be inconsistent, expensive, and risky. Sanitize every hard drive. Confidential data, including consumer data, and software licenses must be non-recoverable after erasure. Optimizing value recovery depends upon balancing rapid inventory turnover which avoids depreciation achieving the highest possible price. Value recovery depends upon accurate and detailed information about the assets being sold. Scrutinize the final disposition to ensure that all material is properly managed. CERCLA (Superfund) statutes establish joint and several liability which is NOT eliminated by a bill of sale or certificate of destruction. Analysis of results depends on a detailed audit trail for every serial number. Records should establish that every asset was properly managed, and every hard drive erased. Copyright 2003 | Redemtech, Inc. copyright 2003 Redemtech, Inc.

Copyright 2003 | Redemtech, Inc. Data Security Facts Data Erasure Fails in 1 of 4 instances. Human Error + Application Failure = Data Disclosure Copyright 2003 | Redemtech, Inc.

Copyright 2003 | Redemtech, Inc. Data Sanitization More Than Erasure! Secure Erase Verify Record Audit Redemtech research has shown that conventional erasure procedures are exceedingly error-prone. In audits of previously sanitized hard drives, we found up to 24% of the drives still contained data. In addition to human error, our research discovered that many common sanitizing applications—including those approved for DoD-compliant erasure—fail to completely secure all data in a significant number of cases. eTesting Labs has independently verified the Redemtech findings. Failsafe data security requires a comprehensive procedure which includes physical control of unsecured hard drives, reliable erasure of the drives and verification of the successful overwrite , and the creation of an audit trail. For a detailed discussion of sanitizing best practices refer to the Redemtech whitepaper “Data Security in the Enterprise.” Copyright 2003 | Redemtech, Inc. copyright 2003 Redemtech, Inc.

Scrutinize Disposition Corporate policy must require end-to-end control of disposition streams. All points in the disposition chain must be vetted for responsible labor and environmental practices. Low commodity values will require elimination of middlemen. Know Where It Goes… For everyone--but especially for large corporate customers with a large stake in public opinion--it’s simply good business to do the responsible thing. When valueless assets must go to recycling, that means controlling all points in the disposition stream to ensure that all materials are handled in a safe, effective, and environmentally sound manner. Redemtech operates its own de-manufacturing line so that we can deal directly end materials refiners, eliminating most middlemen. Our costs for de-manufacturing average 12 cents per pound, although for many recyclers that number may be double. Recyclers who are willing to ship unprocessed e-scrap to overseas processors are actually PAID an average of 5 cents per pound net of freight. Because the financial delta is so great compared to de-manufacturing, it is estimated that 80% of all US electronic scrap supposedly “recycled” is actually shipped overseas to questionable disposition. Acid-bath precious metals recovery in China courtesy Basel Action Network Copyright 2003 | Redemtech, Inc. copyright 2003 Redemtech, Inc.

Copyright 2003 | Redemtech, Inc. Disposition Cost: TCO’s Last Surprise Per Asset Gartner estimated costs from 9/5/03 research note: Decision Framework, DF-20-4138, F. O’Brien. Copyright 2003 | Redemtech, Inc. copyright 2003 Redemtech, Inc.