Dear Fellow Shareholders: As you know, our 10-K

Dear Fellow Shareholders:
As you know, our 10-K was filed on-time but did not consolidate revenues from certain
important operations in China and the USA for technical reasons. In the interests of
transparency, assurance, and forward movement, it is important to explain what occurred and the
strategy behind our current course of action.

We began 2013 with a detailed and promising, if complex, strategy including a comprehensive
business plan to rapidly build from the 2012 results - starting the year with small revenue and
few assets, but with a solid goal of rapid expansion. Through a combination of strategic
teaming agreements, licensing and leasehold agreements, we worked to accomplish our
aggressive targets. Interest in our management, technologies, and supply chain spread very
quickly and, by the end of 2013, we had acquired two operations in the United States, including
three operational facilities and significant functionality. We also engaged in teaming and
licensing agreements throughout the United States and other countries, including Australia,
India, China, Italy, Argentina, Mexico, and more. In addition, we secured significant interest in
our ePlants. We believe the combination of all of the above is a significant competitive
advantage.

In addition to that progress, significant resources were dedicated to gaining a measurable and
sustainable foothold in China (the world’s second largest and fastest growing ewaste market)
through agreements with a PRC company with whom we set the legal framework for our
operations. We subsequently entered into a series of significant contracts to utilize the assets and
reputation of specific operations in China (and the USA) --- with the objective to quickly and
cost effectively secure certain key targets in the major markets in northern China, Shanghai, and
New York. Those transactions involved the operation of significant assets through our business
units and were structured to provide the foundation of business growth in targeted industries and
markets largely in China, but also in the USA. Revenue from those operations were included in
our 10Q filings based upon an initial review of the structure. While our belief that it was
appropriate to report the results of that business on a consolidated basis, after careful
consideration of all of the implications, we made the tough decision to voluntarily suspend
certain of the agreements to adopt controls, structure, systems, and audit processes to our
standards. The result of this decision was necessarily a de-consolidation for 2013 for accounting
purposes. However, that did not negate or eliminate the business development opportunities
achieved by our team in China nor did it slow down our progress in China and our investment in

that market --- much to the contrary, we remain not only committed but we believe our approach
of investing into significant and administrative systems will be our advantage in gaining superior
market expansion. The revenue generated in China is substantial and is expected to continue to
grow at very rapid rates. Our decision merely changed how we accounted for it in 2013.
Our work is on-going and we expect significant, continued brand development in China and
internationally – and at the same time, we will benefit from our work to date with improved
systems, controls and agreements. The support from our managers in China has not wavered and
we have reviewed our business development opportunities in great detail as we work on our plan
to meet growth and other targets announced for revenues in excess of $50MM for this year.
Paramount is our commitment to remain 100% compliant and to ultimately up-list for the benefit
of our Shareholders.

We recognized the need for changes in management controls in the China operations, and to
meet those needs we appointed our Senior Vice President, Dan Feeney to oversee the eVOLVE
Group. We expanded the involvement of our new financial and accounting team, supported by
our commitment to adopt a state-of-the-art, fully compliant, multilingual, and cloud-based
accounting software solution. These systems and these disciplined processes, will continue to be
expanded as we grow and pave the way for our expansion.

I remain highly confident that we are on track to accomplish our 2014 goals. Our company will
continue to expand, and our commitment to tapping into the great opportunities available in
China remains steadfast. With the fastest growing economy and the largest demand for e-waste
solutions and ecologically advanced technologies, China represents the single greatest
opportunity for growth for EWSI with opportunities created by our strong and talented business
development team in that market. We are committed to business development and to utilization
of a leasing program under the eVolve Group as a key part of our growth strategy.
We have made significant progress in many other geographical areas, particularly in the United
States, where the acquisitions of 2013 will be supplemented by an aggressive quest to close on
other opportunities and in Europe and Asia where expansion of our brand is a key focus.
We have a talented core management team, and we have great confidence that this team will
continue to carry out our mission by integrating best practices, innovative strategies,
revolutionary technologies, and global leadership into our operations and our network affiliates.
From challenges arise opportunities. We see the true value in what we are doing, and remain
absolutely committed to executing our plan, attaining our goals, and increasing value to our
Shareholders.

Sincerely,

Martin Nielson
Founder and CEO

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