3M Outlines Latest Actions on COVID-19 Response

Summary

Exhibit 1, filed May 6, 2020 as Document 9-1 in Case 8:20-cv-01003-MSS-CPT, reproducing a 3M news release titled 3M Outlines Latest Actions on COVID-19 Response, dated March 31, 2020. In the release, 3M's chairman and CEO states that the company doubled global N95 respirator output to a rate of 1.1 billion per year and plans to reach 2 billion globally within 12 months. The release describes how 3M prioritizes shipments to healthcare distributors and the federal government, including FEMA, and announces a partnership with Ford on powered air purifying respirators. It also describes steps against counterfeiting and price gouging, including a letter to the U.S. Attorney General, published list prices and a hotline. The release closes with forward-looking statement cautions and a company description. The exhibit is 3 pages.

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Case 8:20-cv-01003-MSS-CPT   Document 9-1   Filed 05/06/20   Page 1 of 3 PageID 221




          EXHIBIT 1
   Case 8:20-cv-01003-MSS-CPT                       Document 9-1            Filed 05/06/20           Page 2 of 3 PageID 222


Published on 3M News | Unit ed St at es (ht t ps://news.3m.com) on 3/31/20 3:25 pm CDT



3M Outlines Latest Actions on COVID-19 Response
Release Date:
Tuesday, March 31, 2020 3:25 pm CDT

T erms:
 Company (English)

Dateline City:
ST. PAUL, Minn.

ST. PAUL, Minn.--(BUSINESS WIRE)-- 3M Chairman and CEO Mike Roman issued t he following updat e announcing addit ional
det ails about 3M’s capacit y increases of N95 respirat ors, st rong measures t o combat price gouging and count erfeit ing, and
new part nerships t o help prot ect our healt hcare workers on t he front lines:

We cont inue t o act wit h urgency t o address t his crisis from every angle, and do all we can t o prot ect our heroic nurses,
doct ors and first responders. As previously communicat ed, beginning in January we ramped up t o maximum product ion of
N95 respirat ors, doubling our global out put t o a rat e of 1.1 billion per year, or 100 million per mont h. This includes 35 million
per mont h in t he Unit ed St at es, and over just t he last seven days we have delivered 10 million N95 respirat ors t o healt hcare
facilit ies in st at es across t he count ry.

We’ve already put int o mot ion addit ional invest ment s and act ions t hat will enable us t o double our capacit y once again, t o 2
billion globally wit hin t he next 12 mont hs – and some of t hat addit ional capacit y will begin t o come online in t he next 60-90
days. In t he Unit ed St at es, we expect t o be producing N95 respirat ors at a rat e of 50 million per mont h in June, a 40 percent
increase from current levels.

It ’s also import ant t o underst and how we are priorit izing and shipping product s t o serve t he most urgent needs in t his
pandemic. In t he U.S., more t han 90 percent of our N95 respirat ors are going t o healt hcare and public healt h, wit h t he
remaining deployed t o ot her crit ical indust ries such as energy, food and pharmaceut icals.

Of our U.S. supply direct ed t oward healt hcare and public healt h, roughly 80 percent is flowing rapidly t hrough our healt hcare
dist ribut ors – primarily consist ing of six large and well-known companies wit h incredible logist ical capabilit ies – which is t he
quickest and most effect ive met hod of get t ing t hose supplies int o t he hands of workers. These N95 respirat ors are moving
direct ly from 3M, t o our healt hcare dist ribut ors, t o healt hcare facilit ies and end-users. We are working closely wit h t hese
part ners t o expedit e delivery even more, which in some cases includes moving pallet s direct ly from our plant s int o crit ical
areas – as we have done over t he last week t o New York Cit y and Seat t le. The remaining 20 percent is being direct ed t o t he
federal government , wit h t he largest port ion going t o FEMA who will allocat e based on t heir det erminat ion of t he most
urgent needs. The priorit izat ion and dist ribut ion of all of our N95 respirat ors are being coordinat ed in close part nership wit h
FEMA, and we are direct ly embedded wit h t hem at t heir headquart ers t o help st reamline decision-making and act ion.

This is not just a 3M challenge; it ’s an indust ry-wide challenge. Even wit h 3M’s accelerat ed product ion combined wit h capacit y
from ot her manufact urers, t he realit y is t hat demand for N95 respirat ors is much higher t han t he indust ries’ abilit y t o deliver.
That is why we cont inue t o explore innovat ive part nerships and solut ions t o help prot ect our healt hcare workers in t his
ext raordinary t ime.

Given t he high use rat e of N95 respirat ors, 3M engineers are right now collaborat ing wit h several st erilizat ion companies t o
find a way for hospit als t o safely clean, reuse and ext end t he life of t hese respirat ors.

Addit ionally, we are part nering wit h Ford t o bolst er product ion of 3M’s powered air purifying respirat ors (PAPRs), which are
highly specialized pieces of equipment used in t he most demanding healt hcare environment s. We’re moving forward quickly
wit h t he goal of increasing PAPR product ion by six-fold wit hin t he next 60 t o 90 days.

Our people are working around t he clock t o accelerat e all of t hese t imelines, and I want t o t hank our 96,000 3Mers for your
t ireless effort s – including t hose in our plant s and dist ribut ion cent ers who are helping make and deliver crit ical supplies t o
where t hey’re desperat ely needed. We cont inue t o priorit ize t he safet y of our people and do all we can t o support t hem –
from remot e work when possible, t o social dist ancing and robust prot ocols for cleaning in our plant s.

We also cont inue t o act on report s of count erfeit ing and price gouging relat ed t o 3M’s respirat ors. This act ivit y is unet hical
and illegal, and we’re doing all we can t o end it . A week ago, I sent a let t er t o t he U.S. At t orney General and t he at t orneys
general of every st at e making clear t hat 3M has not and will not raise it s prices for respirat ors in t his crisis, and offering our
assist ance in t he fight against unconscionable act ivit ies. We’re act ively working wit h law enforcement , our ret ail part ners and
ot hers t o ident ify and punish perpet rat ors. To help our cust omers ident ify and avoid inflat ed prices, t oday we are publicly
publishing t he list prices for our N95 respirat ors, and act ivat ing a hot line t o help cust omers and end-users verify t he
aut hent icit y of 3M product s and report suspect ed fraud. We’ve also made it clear t o our channel part ners t hat 3M will not
t olerat e any such act ivit y, and t hat we will aggressively pursue t hird part ies t hat seek t o t ake advant age of t his crisis.

As disappoint ing as t his unet hical act ivit y is, it is equally heart ening t o see so many st ep up t o help t he world get t hrough
t his crisis – including t he many ret ailers and 3M cust omers t hat have volunt arily cont ribut ed or donat ed t heir excess
st ockpiles of respirat ors and ot her key supplies. We’ll get t hrough t his t oget her, and 3M and our people will cont inue t o do all
we can t o prot ect lives and defeat t his disease.

Fo rward-Lo o king Statements
   Case 8:20-cv-01003-MSS-CPT                       Document 9-1             Filed 05/06/20           Page 3 of 3 PageID 223
This news release cont ains forward-looking informat ion about 3M's financial result s and est imat es and business prospect s
t hat involve subst ant ial risks and uncert aint ies. You can ident ify t hese st at ement s by t he use of words such as "ant icipat e,"
"est imat e," "expect ," "aim," "project ," "int end," "plan," "believe," "will," "should," "could," "t arget ," "forecast " and ot her words
and t erms of similar meaning in connect ion wit h any discussion of fut ure operat ing or financial performance or business plans
or prospect s. Among t he fact ors t hat could cause act ual result s t o differ mat erially are t he following: (1) worldwide
economic, polit ical, regulat ory, capit al market s and ot her ext ernal condit ions and ot her fact ors beyond t he Company's
cont rol, including nat ural and ot her disast ers or climat e change affect ing t he operat ions of t he Company or it s cust omers
and suppliers; (2) risks relat ed t o public healt h crises such as t he global pandemic associat ed wit h t he coronavirus (COVID-
19); (3) liabilit ies relat ed t o cert ain fluorochemicals, including lawsuit s concerning various PFAS-relat ed product s and
chemist ries, and claims and government al regulat ory proceedings and inquiries relat ed t o PFAS in a variet y of jurisdict ions; (4)
legal proceedings, including significant development s t hat could occur in t he legal and regulat ory proceedings described in
t he Company's Annual Report on Form 10-K for t he year ended Dec. 31, 2019, and any subsequent quart erly report s on Form
10-Q (t he “Report s”); (5) compet it ive condit ions and cust omer preferences; (6) foreign currency exchange rat es and
fluct uat ions in t hose rat es; (7) t he t iming and market accept ance of new product offerings; (8) t he availabilit y and cost of
purchased component s, compounds, raw mat erials and energy (including oil and nat ural gas and t heir derivat ives) due t o
short ages, increased demand or supply int errupt ions (including t hose caused by nat ural and ot her disast ers and ot her
event s); (9) unant icipat ed problems or delays wit h t he phased implement at ion of a global ent erprise resource planning (ERP)
syst em, or securit y breaches and ot her disrupt ions t o t he Company's informat ion t echnology infrast ruct ure; (10) t he impact
of acquisit ions, st rat egic alliances, divest it ures, and ot her unusual event s result ing from port folio management act ions and
ot her evolving business st rat egies, and possible organizat ional rest ruct uring; (11) operat ional execut ion, including scenarios
where t he Company generat es fewer product ivit y improvement s t han est imat ed; (12) financial market risks t hat may affect
t he Company’s funding obligat ions under defined benefit pension and post ret irement plans; and (13) t he Company's credit
rat ings and it s cost of capit al. Changes in such assumpt ions or fact ors could produce significant ly different result s. A furt her
descript ion of t hese fact ors is locat ed in t he Report s under "Caut ionary Not e Concerning Fact ors That May Affect Fut ure
Result s" and "Risk Fact ors" in Part I, It ems 1 and 1A (Annual Report ) and in Part I, It em 2 and Part II, It em 1A (Quart erly
Report s). The informat ion cont ained in t his news release is as of t he dat e indicat ed. The Company assumes no obligat ion t o
updat e any forward-looking st at ement s cont ained in t his news release as a result of new informat ion or fut ure event s or
development s.

Abo ut 3M
At 3M, we apply science in collaborat ive ways t o improve lives daily. Wit h $32 billion in sales, our 96,000 employees connect
wit h cust omers all around t he world. Learn more about 3M’s creat ive solut ions t o t he world’s problems at www.3M.com or on
Twit t er @3M or @3MNews.



Language:
English

Contact:
Jennifer Ehrlich
(651) 736-9430

T icker Slug:
Ticker: MMM
Exchange: NYSE


Source URL: https://news.3m.com/press-release/company-english/3m-outlines-latest-actions-covid-19-response


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