Disclosure Pursuant to the California Transparency in Supply Chains Act

The California Transparency in Supply Chains Act became effective on January 1, 2012 in the State of California. This law seeks to provide consumers with critical information about the efforts that companies are undertaking to prevent and root out human trafficking and slavery in their product supply chains. Mathis Brothers Furniture seeks to use only suppliers that act in a responsible manner, including having no involvement with slavery, human trafficking, forced labor or child labor. We are in a continual process of validating that our suppliers are in compliance with a Code of Conduct that requires them to conduct their operations in accordance with all laws applicable to their businesses. In addition, a Mathis Brothers representative conducts unannounced visits to approximately 30% of its suppliers on an annual basis to observe conditions in their manufacturing facilities. If we have concerns, the supplier will be given the opportunity to address them. If the concern is not addressed to our satisfaction, we may sever our business relationship with that supplier. Mathis Brothers Furniture also provides training to our employees who are directly involved with our suppliers to familiarize them with identifying and reporting slavery and human trafficking issues. Employees who ignore any signs of child or forced labor are subject to disciplinary action up to and including termination of employment. Mathis Brothers Furniture continues to maintain its commitment to corporate social responsibility and will be diligent in our efforts to prevent and root out human trafficking and slavery in our supply chain.