From the Desk of Irwin Michael – February 19, 2016 Earlier this week, Exco Technologies announced the intent to acquire a group of private companies operating in Mexico and Michigan. The target is a leading supplier of interior trim components that sells to a diversified group of North American automotive customers. The transaction is valued at US$73M and the deal will be financed by cash and debt. We believe this acquisition is very positive for Exco for several reasons. Firstly, Exco’s existing operations produce significant free cash which Exco retains on its balance sheet. This transaction is an accretive use of that cash since Exco’s free cash flow should pay off the debt relatively quickly. Secondly, the target’s operations are complementary to Exco’s existing business and can provide synergies through new capabilities and customer relationships. Finally, the transaction is expected to be immediately accretive to both earnings and revenues. We like the markets which Exco supplies, particularly automotive manufactured products including leather, mats, netting and trimming. We believe that Exco’s high quality operations and strong growth profile position the company as excellent investment value, particularly with the expectation that Exco could earn $1.30 and $1.64 in 2016 and 2017, respectively. Irwin A. Michael, President I.A. Michael Investment Counsel Ltd.