Background

Along with governments, NGOs, the investment community, and many other companies worldwide, RADA Electronic Industries Ltd is concerned about human rights violations including forced labor, human trafficking and child labor occurring anywhere in the world, as well as the role that armed conflicts play in causing extreme violence across the Democratic Republic of the Congo and its adjoining countries (“the DRC region”).

In 2010, the U.S. Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”), pursuant to which the U.S. Securities and Exchange Commission (the “SEC”) issued rules requiring certain reporting companies to make disclosures under specific circumstances concerning the use of “Conflict Minerals” – defined in the Act as tantalum, tin, tungsten (and the ores from which they originate) and gold. Conflict Minerals are used in the manufacture of a variety of commercial products, including many of our products.

RADA commitment

RADA fully supports the goals and objectives the “Act”, which aims to prevent the use of certain “Conflict Minerals” that directly or indirectly finance or benefit armed groups in The Democratic Republic of the Congo (DRC) or adjoining countries (as defined in the Act).

RADA is committed to comply with the reporting obligations required under Section 1502 of the Act, as well as the related rules and regulations issued by the U.S. Securities and Exchange Commission, including the requirement to conduct inquiries into the source of any Conflict Minerals included in its products.

RADA intends to adopt the Electronic Industry Citizenship Coalition Due Diligence reporting process as guideline to obtain chain of custody declarations from suppliers to ensure transparency and corporate social responsibility throughout the supply chain.

RADA has begun to work with its' suppliers to acknowledge RADA’s requirements regarding Conflict Minerals and responsible sourcing.Suppliers are also required to forward these requirements on to their suppliers.

Suppliers will be required to declare that all products supplied either:

1. Do not contain tantalum, tin, tungsten or gold that are necessary to their production or functionality,

or,

2. Conflict Minerals necessary to their production or functionality contained in the products, originate from non-conflict areas or from smelters that have been validated by an independent private sector party to be conflict free.

RADA expects all of its suppliers to comply with this policy and plans to evaluate its relationships with its suppliers on an ongoing basis to ensure continued compliance. Suppliers who will not comply with these requirements shall be reviewed by RADA’s supply chain organization for future business.

Rada Electronic Industries

Zvi Alon

Chief Executive Officer