California Transparency in Supply Chains Act

SOCIEDAD TEXTIL LONIA, S.A., SOCIEADAD TEXTIL LONIA CORP., and all other subsidiary companies (collectively “STL”), is fully committed to complying with all applicable laws, regulations and national and international conventions, as well as with best practices, regarding ethics, human rights and social responsibility.

This statement is made in compliance with the California Transparency in Supply Chains Act of 2010 (SB 657), which became effective on January 1, 2012, in the State of California. Under this law, large manufacturers and retailers are required to disclose their efforts to eradicate slavery and human trafficking within their supply chains. The law aims to educate consumers, enabling them to make informed decisions.

This statement also sets out the steps taken by STL to prevent slavery and human trafficking from any part of our business.

STL is a luxury retailer and manufacturer with a worldwide presence, dedicated to the design, production and commercialization of clothing and accessories under the Purificacion Garcia brand. Our business model is focused on aligning our value proposition with the needs of our customers and the Company values.

STL's business model is multichannel, with products sold both through our owned retail stores and through our digital platforms.

In this sense, the STL's activity covers all the phases of the value chain: design, manufacturing and supply, distribution, logistics and commercialization of its products, for which handicraft work is part of the DNA of our company. Our headquarters are located in Spain where our products are designed and where our corporate departments are centralized.

STL is committed to conduct business with integrity and we expect and demand the same from our suppliers and strategic partners. This includes working to reduce risks of human trafficking, slavery, servitude and forced or compulsory labor.

Our sourcing strategy is focused on ensuring high-quality and sustainability, encouraging long-term supply relationships with those suppliers who comply with our standards. We have implemented a supply-chain management model which asks suppliers to guarantee full compliance with all applicable laws and/or regulations, respect for fundamental human and workers’ rights, the principles of equal treatment and non-discrimination and the protection of safety and health at the workplace, prohibiting the use of any form of hard or child labor. To ensure compliance with these requirements, suppliers and contractors will be required to make a written commitment and to participate in monitoring activities as requested by STL. Furthermore, we reserve the right to terminate an agreement with any supplier who does not comply with these guidelines.

Both STL and our employees use best efforts to respect the laws and regulations in all countries in which we operate, and conduct our business according to universal principles defined in international standards. We promote honest and ethical conduct, comply with laws and regulations and to act responsibly and diligently when dealing with other partners.

STL will continue to evolve and improve its policies and procedures and to work proactively to ensure they reflect STL’s commitment to ethical and responsible business principles.