The New Wave in Energy

1. The New Wave in Energy Tony Davies Executive Chairman

2. Mission Statement Distributed, on Site, Power Generation The new wave in Energy “To be a leading global supplier of MicroTurbine based cogeneration systems and secure power systems for on sitepower generation.”

3. Low Voltage Distribution Network Thermal Loss Transmission Loss Distribution Loss CENTRALISED POWER Total Efficiency 35% 99.9% availability BOWMAN DISTRIBUTED POWER Heat recovery Total Efficiency >80% 99.9999%+ availability Electricity Quality Power

4. Power Generation Plant Size • Main Drivers • Liberalisation • Power Quality demands • Enabling Technology • Environmental issues (generation & transmission) 1000 MW Growth of centralised monopolies Size Return to Distributed Power Birth of ‘Distributed’ Power (& Cogen) Bowman Source 1900 2000 Time

5. EFFICIENT POWER Cogeneration Distributed Power Generation BPS MARKET UPS Standby Gensets SECURE POWER

6. Quality Power • Power Availability • Electricity Quality • Clean Power POWER QUALITY HIGH EFFICIENCY LOW EMISSIONS

7. GLOBAL MARKETS 2000

8. Power Generation MarketforMicroTurbine Generators (MTG’s)2005-2010 projections Installed: $1300/kW $800/kW $600/kW Uninstalled: $900/kW $500/kW $400/kW 15GW $6bn/yr 5GW $2.5bn/yr Market growth 2005 2000 2010 Year Bowman Source March 2001

9. Bowman Target Market(s) Primary • Cogeneration Applications where combined thermal and electrical power generated on site, is the most economic and environmentally sound solution to meet the sites energy needs. This includes chiller applications and boiler re-powering. • Power Quality/Secure Power Where customers cannot tolerate power supply interruptions or transients that would interrupt their business. Traditionally this market has been met by investing in configurations of standby diesel generating sets and Uninterruptible Power Supply (UPS). A MTG solution can offer similar levels of protection but also provides an operating payback. Secondary • Strategic mobile power, military and commercial, and Auxiliary Power Units • Peak shaving • Resource recovery; flare gas, land fill gas etc. • Mechanical (HVAC, Air and Refrigeration compression)

10. MarketStrategy • Global BOWMAN will plan to serve the global market, focussing on applications and countries where demand for distributed power generation is strong (Japan, USA, Europe). BOWMAN has offices in Japan and California in addition to the UK. • Partners Benefiting from early mover advantage, BOWMAN will partner with lead companies capable of high volume distribution in their specific territories and sectors. BOWMAN will not offer exclusivity to any one organisation, but may to a group e.g. (NTT, MITSUI, KUBOTA). • Target High Value Applications BOWMAN will initially focus on niches, such as co-generation and secure power, rather than driving for the low cost / high volume needs of basic electricity only systems.

11. Company Data • Formed in 1994 • Headquartered in the UK • Subsidiaries in: - Tokyo, Japan (JV with NTT, Kubota & Mitsui) • - San Diego, California, USA • 90 People • Dedicated to Distributed Generation (DG) • MTG Systems - 30 kW to 400 kW • MTG Components - 1 kW to 1500 kW • Power conditioners offered for all DG Systems • - MTG’s • - Fuel Cells • - Renewables (e.g. Wind Generators, Solar)

12. BOWMAN BOWMAN Power Technology BOWMAN Power Systems Components & subsystems for OEM companies Serving the market for Distributed Power Generation. Systems and services for Energy Service Providers and end users

13. Core Technology & Skills • High Speed Alternators - Motor and Generator Applications - State of the art capability - Unique simulation/modelling software - High: - Speed, Power Density, Efficiency - Low: - Size and Losses • Power Conditioners - Electronics and Software - Inverters and Filters • Control Systems • - Power Conditioners • - Engines • - Remote control & monitoring • System Packaging and Applications - Thermal and acoustic management - Integrated CHP solutions • MTG Technology • - Oil free Bearing Systems • - Low emission combustors Joint Venture Developments • Waste Heat Boilers • Chillers • Recuperators • Gas Boost Compressors

14. 30cms High Speed Alternators • Motor & Generator applications • State of the art designs, best in class products • Unique software design tools providing fast track design and build capability • Very high power density and speed available • Power Range: 1kW to 1.5MW • Speed range 500 krpm to 10 krpm • Efficiency up to 98% • Commercially available • Supply contracts with three of the leading MTG companies 60kW 115kW

15. Power Conditioners • Capable of handling 100% load imbalance and difficult loads • 300% fault clearance current for 2 cycles (150% for 2 minutes) • Air or Liquid cooling options • Compact flexible packaging options to meet customer integration needs • Provides very high power quality for various distributed generation applications • Grid connection or Island operation • Flexible power management features • 5% THD (Current) 3% THD (Voltage)

16. BOWMANProduct Status • Power conditioners Commercial sales commenced in 1999, more than 200 units at 50kW to 100kW have been shipped. • High speed alternators Commercial sales commenced in 2000 and more than 150 units have been supplied to MTG customers at nominal ratings of 70kW, 90kW and 115kW. The first 165kW unit is currently being developed, and design studies have been completed up to 2MW. • MTG Cogeneration systems Bowman is currently shipping a limited number of 50 kW and 80 kW systems on commercial terms to selected sites. Once this initial fleet has proven durability and performance BPS plans to release units for unrestricted commercial sales. The first commercial unit will be the 80kW, targeted for the end of 2001 • MTG mobile units The first nominal 30kW units for military use are currently commencing Beta site trials. Commercial production of the unit is planned for late 2002.

17. Business Challengesfor the MTG Industry • Durable Systems. To provide robust durable Micro Turbine based systems with proven life of over 30,000 hours (before refurbishment). • Low Cost. By design and process achieve the cost targets (capital & operating) necessary to achieve the high volume sales • Channels to market. To establish distribution & support channels capable of supplying sustainable volumes and servicing the mass global market. • Continuous product development. To continuously advance the technology to improve systems efficiency, emissions and operational life. • Regulations and Standards. To access to grid, interconnectivity, common standards.

18. Mission Statement Distributed, on Site, Power Generation The new wave in Energy “To be a leading global supplier of Micro Turbine based cogeneration systems and secure power systems for on sitepower generation.”