1. New Specialty Metals Rules for DFARS Compliance Compliance methods under FY 08 law: Use only US or qualifying country specialty metals Make/Sell COTS fasteners for COTS items Make commercial fasteners AND certify purchase 50% domestic metals per year Distributors would have to obtain self-certification from manufacturers See www.indfast.org for list of manufacturers and distributors utilizing 50% provision and find out how to be listed – must renew self-certification on an annual basiswww.indfast.org Sell fasteners under contract issued before 7/26/08 using fastener DNAD - the fastener DNAD expires for use on new contracts on 7/26/08 1

2. New Specialty Metals Rules (cont.) Utilize Prime Contractor’s one-time waivers (product made before 10/17/06; item accepted by Govt before 9/30/10) Any combination www.dcma.mil/dnad - website with all current rules (DoD Class Deviation), contract language, etc.www.dcma.mil/dnad Proposed Rule Public Comment Period Closed September 19, 2008 Final rule expected with few, if any, changes in Spring 2009 2

3. New Specialty Metals Rules (cont.) Summary Fastener manufacturers and distributors have substantial flexibility under new law, but you must be proactive Understand your options Communicate clearly with your customers 3