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Significance of Environmental Management Report Publication

The mass production and consumption of the 20th century as well as the manufacturing and cosumption style harmful to the environment have led to an environmental crisis.The damage made to the Earth is getting worse, which calls for all possible means to avoid this problem.

Such changes in the global society has led to the emphasis of corporations' societal responsibilities to go beyond the efficient financial execution to the amelioration of the natural and societal environments. This calls for the companies to take the environment into account when participating in all its activities.

The environmental management of Zalman Tech, a company founded in 1999 that has concentrated on the development and production of silent coolers and user-friendly computing environment has developed practical activities to promote the environment and economy based on people-centered management policies.

After officially announcing its environmental management policies in 2003, Zalman has established an environmental management system based on its environmental ethics and has strived to approach all its research, development, and production in an environment-friendly manner.

In the meanwhile, Zalman has strived to find the optimal method to contribute to the amelioration of the quality of life as well as the constant development of individuals, corporations, societies, and environment.

This report briefly summarizes the efforts, results, and work to be done in the environmental management promoted by Zalman. We will continue to strive for better understanding and execution regarding the environmental management. We kindly ask you for your continued interest and encouragement.

Introduction

Corporate Profile

Zalman is a corporation that concentrates on the development and manufacturing of products for a user-friendly computing environment based on its silent and heat dissipation technologies.

Chairman/CEOKeonwoong In

FoundedJanuary 7th, 1999

Currently employs153

Capital US$ 3.345million

Capital and Assets US$ 36.549 million

Revenues US$ 31.838 million (2009)

Main Products COOLERS : CPU Coolers, VGA Coolers, HDD Coolers, Northbridge Coolers, Note Book Coolers
POWER SUPPLIES : 460,500, 600, 660, 750, 770, 850, 1000W
PC CASE : Tower Case, Home Theatre Case 3D
MONITOR : 19", 22"
FPS GUN MOUSE

Office LocationOBIZTOWER 26F 126, Beolmal-ro, Dongan-gu, Anyang-si, Gyeonggi-do, Korea

Main Export NationsEU (24 countries), Asia (14). North and South Americas

Introduction to Environmental Reports

Vision & Strategies

• Reporting Period & Range

Zalman Tech issued its environmental report on April of 2009 in order to provide the consumers, local societies, and NGO with information regarding the consistent enhancements and their results in the environmental field as well as to provide them with the management information. The environmental report that was issued in 2005 was based on Zalman's business site (Seoul) between January 1st of 2009 to December 31st of 2009.

• Standards

The report was based on the standards orEnvironmental Report Guideline 2007"of the Ministry of Environment of South Korea.

• Contact Information

For any comments or questions regarding the environmental reports, please feel free to contact us via the telephone (02-2107-3232) or e-Mail (zalman@zalman.co.kr).

Environmental Policies

Zalman Tech has set and will continually promote the following items as its environmental policies in order to minimize the environmental effects generated by manufacturing, products, and service to realize an environment-friendly corporate management.

• Zalman Tech's Environmental Policies

1. To minimize the environmental load such as waste generation and emissions by evaluating the environmental effects generated during the manufacturing, distribution, and disuse of its products in advance.

2. To reduce the use of chemicals by reforming the application process of the chemicals that could adversely affect the environment and by substituting these chemicals with environment-friendly materials.

3. To contribute to the preservation of the environment through efficient management of the resources and energy, development of new materials, efficiency amelioration, and development of products that use less resources and energy.

Medium Long Term Targets for Environmentally Friendly Policies (2007 — 2010)

• Agreement with outsourced developers for an Environmental Standard Agreement

Supply developers with Environmentally Sound Standards and necessary support

• Unfriendly Waste Monitoring System

Real Time monitoring and Support for our Manufacturing and Production Network.

• Phase out Environmentally Unsound Operations

Reduce the use of unfriendly materials and increase recycled and re-used materials.

Environmental Achievements for 2009

The environmental goals and achievements of this year to lead to the achievement of the medium and long term environmental goals are as follows.

  • Category
  • 2009 Targets
  • 2009 Targets Met
  • Environmentally Friendly Standards
  • Newly Released Products
  • Product 17
  • Developer Network Environment Standards

  • Development Procedure Monitoring

  • Donghyun Packing and 2 others Process Evaluation and Environmental Optimization Plans
  • Safety Measures
  • Incident Prevention
  • Increased Safety Training and Awareness

Environmental Management System

Environmental Management System

Zalman Tech acquired the 15014001 certification, an environmental management system capable of solving environmental problems through the participation of all its members in 2003. Furthermore, Zalman strives for environmental enhancements by establishing the corporate goals based on the foundations of the environmental management system.

Environmental Audit

1.Internal audit is performed by internal auditors that meet the requirements for the task twice a year. Things that do not meet the environmental standards are reported to the CEO and the corresponding department takes quick actions to solve the problem.

2.External audit is performed twice a year by an examiner from a certification organization. This promotes objective trust and efficiency improvement regarding the environmental management system.

Affect on Resources & Energy Use

Use of Resources

Efforts to minimize the material loss are being made for the effective use of limited resources through data management regarding the amount of purchase and use of copper and aluminum, the two most important materials for Zalman Tech. Furthermore, consistent development of high-efficiency products allow the reduction in the use of materials per unit.

Energy Use

Efforts are constantly being made to cut down the use of energy by improving system efficiency through process and product enhancements.

Evaluation of Environmental Effects

Twice a year, Zalman evaluations the affect that changes made at the business site has on the environment. According to the evaluation results of January of 2010, there has been no adverse affect on the environment regarding water quality, atmosphere, or noise/vibration.

Environment-Friendly Products

To satisfy the demand for environment-friendly products, Zalman products are developed by taking the environmental issues into account from its initial design stage. Water pollutants, green house gases, materials that destruct the ozone layer, or air pollutants are not emitted or used in the manufacturing processes. Furthermore, Zalman Tech has been performing evaluations and analyses regarding the products' effects on the environment since the year of 2005. In preparation for the European environmental regulations, a data base regarding the harmful materials present in the products has been established for a clear understanding of the current state. The management of harmful substances that are regulated by March of 2006 now conform to the RoHS standards and various research are being conducted to increase the ability of the products to be recycled.

Potentials to be recycled for each product group

  • Products
  • AlmedValue
  • Zalman
  • CPU
  • 65%
    (IT, Communication devices)

  • 88.5%
  • VGA
  • 86.1%
  • CASE
  • 98.5%
  • PSU
  • 95.9%

Partnerships

Management of Environment-Friendly Supply Network

Zalman Tech currently holds relationships with various partners. Zalman requests for these partners to accomplish an environmental performance greater than or equal to a specified level and a related checklist has also been developed and is being used during the registration and post-management processes.

Furthermore, it is foreseen that the major partners will have established their own environmental management system by the year of 2009 following Zalman's environmental management pursuits. nt processes.

A system for managing the environmental performance of the partners will be developed in the year of 2009 to be reflected in Zalman's evaluation on the environmental performance.

Compliance to Laws & Regulations

  • Category
  • Notes
  • Environmental Accidents
  • Environmental Complaints
  • None
  • None

Zalman continually checks the revisions made to the environmental laws and regulations to maintain a management system that conforms to them. There has been no environmental accidents or complaints at the business site in the year of 2009.

Certificates

Zalman Tech became IS014001 certified in the year of 2003 and this was combined with the existent environmental management system run by the company. The acquirement of this certificate has led to a more efficient operation of Zalman's environmental management system.