FE Clean Energy Group Renewable Energy and Energy Efficiency Strategies G eorge Sorenson, Chairman Financial and Technical Synergies Within Our Funds September, 2004

FE Clean Energy is a private equity investment firm with approximately $150 million of investment capital. The firm was founded to capitalize on the worldwide growth in energy efficiency projects and renewable energy projects. The Group has closed over $567 million of infrastructure investments in emerging markets for our funds under management and our co-investors. Funds under management include The Dexia FondElec Energy Efficiency and Emissions Reduction Fund, The FondElec Latin America Clean Energy Services Fund and the FE Global / Asia Clean Energy Services Fund. FE CLEAN ENERGY GROUP The Company

FE Clean Energy takes a platform approach to business development. Establishes and invests in companies with a particular technical specialty in a market EETEK Hungary: energy efficiency and co-generation with a focus on municipal and industrial users Optima Energia Mexico: energy efficiency with a current focus on the hotel sector Thailand and India: a focus on municipal lighting, industrial energy efficiency and renewable energy Our goal is to invest in the build out of energy infrastructure and share in the gains in efficiency as part of our return. FE CLEAN ENERGY GROUP Energy Efficiency Strategies

FE CLEAN ENERGY GROUP Technology Enablers An environment conducive to the development of energy efficiency and renewable energy projects must be present in the country of investment. –Is there a national policy supporting energy efficiency initiatives that incentivizes the various participants? The Thai approach to energy auditing

FE CLEAN ENERGY GROUP Technology Enablers –Are financing enablers present? Can non-recourse financing for energy efficiency projects be obtained from local or governmental financial institutions? Are potential financial guarantors for energy projects accessible?

FE CLEAN ENERGY GROUP Technology Enablers –Is an appropriate energy regulatory regime in place? Are tariff guidelines in place that provide appropriate pricing for renewable energy? Can one enter into long term power purchase agreements to supply power to the grid? Is the licensing process for new projects clear and efficient? Can non-recourse financing for energy efficiency projects be obtained from local or governmental financial institutions?

EETEK is the first independent, full service ESCO in Hungary to provide end-to-end services for energy efficiency upgrades. –EETEK has an in house technical team. –Service is customized for the particular customer. –Services include: energy management, heating system rehabilitation, boiler house reconstruction, waste heat utilization, lighting system modernization, control system implementation. –FE Clean Energy realized EETEKs expertise could be used in similar projects outside of Hungary. Initial forays took place in neighboring countries Gradually a more global approach has taken form FE CLEAN ENERGY GROUP EETEK Ltd.

An emerging Mexican ESCO with expertise in the hotel business, desirous of broadening that expertise to other energy efficiency businesses in both Mexico and other nearby countries in the region. –The Company has struggled with financing problems inherent to emerging markets. The ability to borrow using a contract as collateral –EETEK has begun working with Optima on potential illumination transactions. EETEK understands the technology, Optima understands the market –Optima has hotel expertise that may be put to good use in other select Latin American markets and in Southeast Asia. A low tech solution to hotel energy efficiency fits well in select Asian countries FE CLEAN ENERGY GROUP Optima Energia

The Indian market demand for energy efficiency and renewable energy is increasing dramatically. –ELPRO has an elegant, low tech solution to increase municipal lighting efficiency in Indian cities. Use of existing cell phone lines to regulate lamps The city handles all lamp repairs and replacements ELPRO gets a portion of the savings EETEK can provide expertise to ELPRO on building ELPROs illumination business FE CLEAN ENERGY GROUP ELPRO and Naturol

In the Indian market there is a need to supplement petroleum based fuels with bio-fuels. –Naturol has formed a business to supply bio additives for diesel, initially using waste palm oil, and then transitioning to Jatropa oil. Naturol is working with the Government of Andra Pradesh to formulate an agricultural subsidy policy for Jatropa bean production. The Company has tied up with an American oil additive producer, and is getting the quality of their product certified for both the India and European bio-fuel markets. The Company, in addition to their projected diesel additive sales, is focused on some higher value added nutraceutical businesses. If the business plan is successful we will transfer the know how to other emerging markets. FE Clean Energy Group Continued

Conclusion –Governments must foster technology enablers in markets they want to promote. –We have found that meaningful technology transfer can occur into as well as between emerging markets. –We try to adjust existing business approaches to similar needs in other markets. FE Clean Energy Group Private Equity Strategies