Our relationship with each of our suppliers is determined based on two factors:

• How critical the commodity supplied is to our business
• The mutual value of the supplier/Littelfuse relationship

As shown in the Relationship Categories diagram provided on the following page, these factors are used to classify suppliers into one of four categories: vendor, supplier, partner and alliance. Our goal is to move all suppliers into the appropriate quadrant.

The relationship categories play a key role in our global supply base strategy. Each corresponds to a set of expectations and associated benefits that increase as criticality and the value of the relationship increases.

Specific details about our strategy and plan for accomplishing our vision are spelled out in the remaining sections of this document.