Filtration Company

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Filtration Company Defend the Deep with
BSFc The Filter Port of Call
Harvey S Stober
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• Forward-looking StatementsStatements in this
  presentation that are not historical facts are
  forward-looking statements, including statements
  about any proposed offering, the effects thereof
  and the timing of filing an offering memorandum
  relating to any offering. Factors that could
  cause actual results to differ materially from
  the forward-looking statements, which involve
  risks and uncertainties, and that should be
  considered in evaluating these statements
  include changes affecting the ballast water
  treatment market regulatory changes and
  conditions in the United States capital markets,
  particularly those affecting valuations of
  private equity transactions. BSFc expressly
  disclaims any obligation or undertaking to
  release publicly any updates or revisions to any
  forward-looking statements to reflect any change
  in its expectations or any change in events,
  conditions or circumstances on which any such
  statement is based.

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The Ballast Water Problem

• Mnemiopsis (comb jelly) has a great appetite for
  the zooplankton that many fish also eat. Its
  dominance was so rapid that by 1989 there was
  about a billion tons of it, while the numbers of
  fish, including those of the commercially
  valuable anchovy, had plummeted. The situation
  became critical, causing the virtual collapse of
  the anchovy, scad and sprat fisheries.

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• The International Maritime Organization (IMO),
  the governing body of maritime...
• is Mandating Ballast Water Treatment (BWT) for
  most New Vessels in 2009
• Retrofit market will begin 2H 2007
• BWT System Filter Disinfection
• Our Mission Become the Leading Filter Supplier
  to the BWT System Market
• Combined Market Size 260 mm/year
• per Lloyds, IMO Haskoning Reports

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BWT Filter Market Summary

• 1.0-1.5k Annual Newbuild Vessels
• 8-10 of 70k Retrofit Vessels (800-1k/yr/7 yrs)
• Filter Flow Rates 300 m3/hr to 8000 m3/hr
• Filter Prices 20,000 500,000 Avg. 68/m3

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CUSTOMERS

• 12 Potential BWT System Customers
• 5 of These Will be 10 Share Players
• 3 of These Will use BSFc Filters
• Customers Aggregate Forecast 50 sh
• Our Goal 25-30 share

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The BSFc Advantage

• Fully Automatic Self Cleaning
• Best Performance Efficiency up to 90
• Able to Handle Heavy Dirt Loads
• Lowest Cost

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Manufacturing Partner

• 24 Years in Filtration
• Revenue 45 million
• ISO 9000 Certified
• In House Laser Cutting, Robotic Welding,
  Sandblasting, Coating
• 2 Week Lead Time vs. 2-3 Months
• Easy Ramp-up
• Strong RD Capability
• 14 Year Exclusive Contract

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Competition

• 5 Competitors Amiad, Arkal, Boll, Hydac,
  Taprogge
• Our Competitive Advantages Performance, Low
  Cost, In House Production
• Barriers to entry Product Certification,
  Process Patent

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Strong Team Leader

• Etai Dagan, CEO
• 20 Years Industry Experience
• MD Amiad Australia 7 Yrs
• BWT Product Manager for Amiad International for 3
  years

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Expansion Exit Strategy

• New Filtration Markets
• IPO or Merger in 3-5 years
• Amiad went public on AIM 12/05 at better than 1x
  revenue valuation (Has traded as high as 2x)

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Summary Conclusion

• Experienced Management
• Market Will Be There
• Little Production Risk
• Superior Production Capability
• Minimal Marketing Need
• Superior Performance
• Low Cost
• 25-30 Margins with Little O/H
• Key Customers in Hand