Automodular Dividend Policy

Effective August 10, 2011 Automodular will be resuming the payment of regular quarterly dividends at a rate of $0.05 per share. Automodular will also pay special dividends from time to time if cash surpluses grow beyond reasonably forecast needs.

At its January 19, 2012 board meeting, the Board of Directors increased the regular quarterly dividend to $0.06 per common share.

The Board of Directors reviews the payment of dividends on a quarterly basis in conjunction with its review of the Company’s quarterly financial results. Any and all dividends are declared at the discretion of the Board of Directors.

Canadian Tax Information – Eligible Dividend

For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation, unless stated otherwise, all dividends on common shares paid by Automodular Corporation to Canadian residents are designated as "eligible dividends".