Solitron Devices, Inc. · OTC:SODI

Solitron Devices — Proxy Contest (July 2015)

23 slides from Solitron Devices's proxy contest presentation, Jul 17, 2015

1. Slide 1: Shareholders for a Better Solitron

   Shareholders for a Better Solitron July 14, 2015 Eriksen Capital Management LLC Cedar Creek Partners LLC Tim Eriksen 7/14/2015 Eriksen Capital Management 1

2. Slide 2: Disclaimer

   Disclaimer _____________________________________________________________________________________________________________________________ ___ ____________ The views expressed herein represent the opinions of Eriksen Capital Management LLC (“ECM”) and Cedar Creek Partners LLC (“CCP”), and are based on

3. Slide 3: Table of Contents

   Table of Contents _____________________________________________________________________________________________________________________________ ___ ____________ I. Overview of Solitron II. History of Under Valuation and Shareholder Abuse III. Shareholders for a Better Solitron Has a Better Plan IV.

4. Slide 4: I. Overview of Solitron

   I. Overview of Solitron _____________________________________________________________________________________________________________________________ ___ ____________ • 1959 Company founded • 1965 - 1970 Solitron grew through numerous acquisitions • Jan 1992 – Solitron filed for Chapter 11 bankruptc

5. Slide 5: I. Overview of Solitron: Business Summary and Financial Overview

   I. Overview of Solitron _____________________________________________________________________________________________________________________________ ___ ____________ Business Summary: Solitron Devices, Inc. designs, develops, manufactures, and markets solid - state semiconductor components and rela

6. Slide 6: History of Under Valuation

   II. History of Under Valuation & Abuse _____________________________________________________________________________________________________________________________ ___ ____________ History of Under Valuation: • Dec 1992 – Shevach Saraf named CEO of Solitron (share price low of $3.43 and high of $8.

7. Slide 7: History of Under Valuation: P/E net of cash

   II. History of Under Valuation & Abuse _____________________________________________________________________________________________________________________________ ___ ____________ History of Under Valuation: • The most telling chart is a history of the valuation based on price to earnings ratio ne

8. Slide 8: History of Poor Corporate Governance (Shareholder Abuse)

   II. History of Under Valuation & Abuse _____________________________________________________________________________________________________________________________ ___ ____________ History of Poor Corporate Governance (Shareholder Abuse): • From 1993 through 2012, CEO Shevach Saraf and the Board di

9. Slide 9: History of Poor Corporate Governance (Shareholder Abuse)

   II. History of Under Valuation & Abuse _____________________________________________________________________________________________________________________________ ___ ____________ History of Poor Corporate Governance (Shareholder Abuse): • In 2012, Board approved a Rights Agreement (Poison Pill) w

10. Slide 10: History of Poor Corporate Governance (Shareholder Abuse)

    II. History of Under Valuation & Abuse _____________________________________________________________________________________________________________________________ ___ ____________ History of Poor Corporate Governance (Shareholder Abuse): • In Feb. 2014, the Board unilaterally extended the term of

11. Slide 11: History of Poor Corporate Governance (Shareholder Abuse)

    II. History of Under Valuation & Abuse _____________________________________________________________________________________________________________________________ ___ ____________ History of Poor Corporate Governance (Shareholder Abuse): To summarize events of the last two plus years: • there were

12. Slide 12: History of Poor Corporate Governance Re: CEO Compensation

    II. History of Under Valuation & Abuse _____________________________________________________________________________________________________________________________ ___ ____________ History of Poor Corporate Governance Re: CEO Compensation: • In 1992 Shevach Saraf was named CEO. The company was in C

13. Slide 13: History of Poor Corporate Governance Re: CEO Compensation

    II. History of Under Valuation & Abuse _____________________________________________________________________________________________________________________________ ___ ____________ History of Poor Corporate Governance Re: CEO Compensation: • In fiscal 2005, the Board granted CEO Saraf options to pu

14. Slide 14: ECM Plan for Correcting Under Valuation

    III. ECM Has a Better Plan _____________________________________________________________________________________________________________________________ ___ ____________ ECM Plan for Correcting Under Valuation: • Improve corporate governance. • Treat shareholders like the owners of the company. • Im

15. Slide 15: ECM Plan for Improved Corporate Governance

    III. ECM Has a Better Plan _____________________________________________________________________________________________________________________________ ___ ____________ ECM Plan for Improved Corporate Governance: • Improve the Accountability, Composition, and Independence of the Board by adding Lar

16. Slide 16: Our Nominees Are More Qualified

    IV. Our Nominees Are More Qualified _____________________________________________________________________________________________________________________________ ___ ______________________________ Solitron’s nominees are not the right choice to solve Solitron’s problems. Mr. Kopperl has been on the

17. Slide 17: Our Nominees Are More Qualified

    IV. Our Nominees Are More Qualified _____________________________________________________________________________________________________________________________ ___ ______________________________ ECM nominees have the necessary training, knowledge and expertise to solve Solitron’s problems of conti

18. Slide 18: Our Nominees: Tim Eriksen

    IV. Our Nominees Are More Qualified _____________________________________________________________________________________________________________________________ ___ ______________________________ ECM nominees have the necessary knowledge and expertise to solve Solitron’s problems of under valuation

19. Slide 19: Tim Eriksen

    IV. Our Nominees Are More Qualified _____________________________________________________________________________________________________________________________ ___ ______________________________ Tim Eriksen Mr . Eriksen’s extensive financial expertise, including knowledge of unlisted micro - cap c

20. Slide 20: Our Nominees: David W. Pointer

    IV. Our Nominees Are More Qualified _____________________________________________________________________________________________________________________________ ___ ______________________________ ECM nominees have the necessary knowledge and expertise to solve Solitron’s problems of under valuation

21. Slide 21: David W. Pointer

    IV. Our Nominees Are More Qualified _____________________________________________________________________________________________________________________________ ___ ______________________________ David W. Pointer From September 2014 to June 2015, he was a member of the Board of Directors of ALCO St

22. Slide 22: Conclusion

    Conclusion _____________________________________________________________________________________________________________________________ ___ ______________________________ We believe that Solitron suffers from continued under valuation due to the shareholder abuse and poor capital allocation of its

23. Slide 23: Questions?

    _____________________________________________________________________________________________________________________________ ___ ______________________________ Questions? 7/14/2015 Eriksen Capital Management 23

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