June 24, 2021

Dear Valued Customer,

I would like to thank you for your continued business and confidence in Jones. We strive to provide you with industry-leading service and the highest quality products to support your ongoing patient care—care that is so important—while we continue to focus on maintaining your continuity of supply.

As you are aware, many industries in Canada, the U.S. and the rest of the world are experiencing supply chain challenges. With this, Jones has experienced significant cost pressures over the past several months within multiple areas of our businesses, including:

• Raw material costs for resin, paper and adhesives. There have been significant cost increases for these materials over the last six to eight months that will continue into the future.
• Freight. Shipments have increased in frequency due to erratic supply and demand challenges, resulting in shipping costs for raw materials and products increasing dramatically. We continue to navigate these shipment changes to support supply continuity for our customers.

Overall, these cost increases have an impact on our bag, folding carton, vial, bottle, jar, medication adherence card, and label product categories.

We have invested and continue to take steps to absorb and delay increasing costs for customers through manufacturing, supply and distribution controls—however, despite these efforts, it is necessary for us to pass through price adjustments ranging from 5% to 17% for select product categories, while our jar category will see a 35% increase to cover a portion of this increased cost.

Direct pricing will be updated for bags, cartons, vials, bottles and jars starting August 1, 2021, with wholesale pricing increases in these categories to follow from mid-August 2021 through mid- September 2021. Direct pricing updates for medication adherence card, as well as laser and thermal label categories will take effect starting September 1, 2021, with wholesale pricing increases to follow for these categories in mid-October 2021.

Updated pricing will be reflected in our product catalogue here in our Pharmacy Store.

If you have any questions about these changes, we welcome you to contact your sales representative directly, or a member of our Customer Service team at +1.800.265.1009.

We thank you for your understanding and ongoing support, and we look forward to servicing you for many years to come.

Sincerely,

Steve MacNeill
Senior Vice President - Pharmacy Market, Canada