CORPORATE SUSTAINABILITY

SportsArt has a long history of eco-friendly product innovation. As one of the first manufacturers
of self-powered elliptical trainers and cycles, it was only natural to turn our attention to treadmill
power consumption.

In 2007, SportsArt brought to market the first ECO-DRIVE™ treadmill motor. This motor system is
engineered to use 32% less power than standard treadmill motors and can save club owners thousands
of dollars on electricity bills every year. SportsArt also carries a variety of self-generating ellipticals and
cycles that require absolutely no outside power to operate.

SportsArt’s latest eco-friendly innovation is the revolutionary ECO-POWR™ line. ECO-POWR™ is a series
of cardio fitness products with a built-in inverter which harnesses wattage from human exercise, converts
them to AC power and feeds it back into the power grid as useable energy. Club owners who replace their
cardio equipment with the ECO-POWR™ series will be able to reduce their facility’s carbon footprint,
offset power costs, and more.

Besides helping the environment through the product design initiatives, SportsArt has gone lean and
green in its daily operations by recycling paper, reusing boxes for parts packaging and replacing
standard bulbs with energy-saving fluorescent lights. SportsArt also currently uses 60-70%
post-consumer paper in cardboard equipment packaging.

Under buildings at the Tainan, Taiwan factory, tubes store up to 7,500 metric tons of rainwater which
is used for watering the grounds. About 100 metric tons of waste water from the production line also
helps keep grass and flowers green. Waste water from the painting process ends up washing the dirt off
the street and keeping roadsides green – after treatment at the factory and a local water processing plant.

In 2003, the Tainan, Taiwan factory was awarded the second place in a national contest for environmental beautification and building/landscape design. Judges noted the use of open space, complementary building materials and the koi pond as exemplifying the design of a stress-reducing environment.

Most recently, in January 2011, SportsArt’s Taiwan factory became ISO-14001 certified. ISO-14001 certification shows that SportsArt is committed to identifying and controlling the environmental impact of business activities, products and services, and to continually improve environmental performance by implementing a systematic approach to setting environmental objectives and targets.

Eco-friendly aspects of the factory include:

• An air conditioning system that doesn’t turn on until the temperature exceeds 28 degrees Celsius

• Tinted windows that let sunlight in but keep heat out, reducing the need for electric lights

• An innovative, sandwich-like exterior that naturally cools the building