DSG Technology Supercavitating Ammunition Commercial in Confidence © DSG Technology AS

Most Effective Solution for Self Defense Multi Environment Ammunition™ (M.E.A.) Enhancing capabilities of 7.62mm, 12.7mm, 20mm, 25mm, and 30mm applications with standard weapons Delivers greatly increased range, improved stopping power, penetration and multi-environment capabilities without modification to existing weaponry Underwater, Water-to-Air, Air-to-Underwater, Air-to-Air Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS Background Problems with the current ammo Conventional rounds lose significant velocity when fired from the air through or into water. Trying to defend against water-borne attacks , such as swarming boats, where rounds have to penetrate a water barrier, such as a wave, to hit the target is, therefore, futile. Conventional rounds in route to a target, instead of entering the water, may ricochet off the water’s surface and lose velocity, proving futile against a swarm attack. Swarming surface boat hard-kill is one of the applications of supercavitating rounds. While various forms of supercavitating ammunition have existed for many years, they typically require very steep angles of incidence (>60 degrees) in order to enter the water from air, making such ammunition ineffective for shipboard use to defend against a swarm attack. Cavity Water Projectile Commercial in Confidence © DSG Technology AS

MEA Advantages Up to 20% extended effective range in air compared to other AP ammunitions of similar caliber from same weapon Up to 20% increased effectiveness in armor penetration at range* Extreme penetrating ammunition – water, armor, materiel, sand, mud Very low angle target penetration – > 2 degrees into water from air > 15 degrees into armor or curved hard surfaces Very low ricochet risk from water surface Hit targets above or below water line Projectiles effective through multiple air / water /air (waves) Projectiles can carry tracer, fuze or HE for secondary destructive effect Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS MEA Benefits Supercavitating MEA rounds are able to enter from the air into the water while maintaining their destructive power MEA rounds enter or leave water at very low angles (> 2 degrees) MEA rounds enter the water without danger of ricocheting, even when multiple air/water/ entries are involved i.e. passing through waves MEA rounds are Stable in air and water Spin-stabilized in air and cavity-stabilized in water Capable of penetrating steel targets underwater up to 60m for 12.7mm MEA bullets can penetrate water, sand, and mud (wet or dry) Bullet profile enables highly effective penetration of difficult materials including dry or wet sand and mud. Bullet remains intact & effective Firing rounds from existing shipboard guns offers a highly effective and cost-efficient hard-kill defense MEA can effectively engage close-in targets Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS MEA Performance Caliber Underwater range 30mm 200m/600ft 150m/450ft 20mm 12.7mm 60m/200ft 25m/80ft 7.62mm 12m/38ft 5.56mm Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS MEA Features Low angle water entry Low angle armor piercing (cylindrical shapes) Multiple-layer targets From Air & Water to Air & Water Caliber-sized holes (depending on application) Hydro-static shock & direct effects of cavity in water Extended range in air by up to 25% Standard weapons Multiple patents Scalable across calibers Commercial in Confidence © DSG Technology AS

MEA Performance (Effective Range) Air Range (Supersonic) Caliber Underwater Range 12.7mm >2,000m 60 metres 7.62mm >1000m 30 metres 5.56mm 800m 15 metres Note: Just requires changing to MEA ammunition!! Commercial in Confidence © DSG Technology AS

SHOOTING FROM THE AIR INTO THE WATER (RANGE 10M) MEA 7.62x51 7.62 DCS SPECIFICATIONS Bullet type DCS Bullet weight (g) 14.2 Core weight (g) Core diameter (mm) 7.62 SHOOTING IN THE AIR X (range in m) V (velocity in m/sec) E (energy in Joule) 10 660 3093 200 576 2356 400 497 1754 600 425 1282 800 364 941 1000 323 740 SHOOTING FROM THE AIR INTO THE WATER (RANGE 10M) 5 437 1356 290 597 15 193 264 20 129 118 23 100 81 Samples available In production now No sabot Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS Target Effectiveness 7.62 DCS 7.62x51 DESCRIPTION RANGE Max supersonic range in air >3100 feet Max effective range in water 75 feet Will penetrate through >6mm steel plate underwater at 22 feet u/w Will penetrate in >6mm steel plate underwater at 38 feet u/w Will penetrate 2.5mm steel plate underwater at 75 feet u/w Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS Target Effectiveness 7.62 DCS 7.62x51 Standard AR-15 weapon fired air to water 15 degree water entry 22 feet underwater range 6 mm steel target Commercial in Confidence © DSG Technology AS

Target Effectiveness 7.62 DCS Location of the plate Sea trials with air to water at low angles Shooting from position 1 and position 2 Target is submerged 6mm steel plate Depth: approx. 6-7m water depth 7.62x51 DCS ammunition Std G3 rifle Penetrated a 6mm steel plate Commercial in Confidence © DSG Technology AS

SHOOTING FROM THE AIR INTO THE WATER (RANGE 10M) MEA 12.7x99 12.7 APSX SPECIFICATIONS Bullet type APSX Bullet weight (g) 60 Core weight (g) 53 Core diameter (mm) 12.6 Muzzle velocity (m/sec) 780 Recoil Momentum (kgxs) 6.7 SHOOTING IN THE AIR X (range in m) V (velocity in m/sec) E (energy in Joule) 500 651 11230 1000 524 7270 1500 402 4280 2000 326 2820 SHOOTING FROM THE AIR INTO THE WATER (RANGE 10M) 10 627 10420 20 510 6890 30 415 4560 40 338 3030 50 275 223 1320 Samples available In production now Discarding sabot Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS Target Effectiveness 12.7 APSX DESCRIPTION RANGE Max supersonic range in air >6300 feet Max effective range in water 200 feet Will penetrate >12 mm steel at 100 feet u/w Proven against torpedo at 75 feet u/w Commercial in Confidence © DSG Technology AS

Shooting from the air into the water at range 100m 41 Calculated characteristics of 20…30-mm ammunition with “Type R” underwater projectile Ammunition 20x102 20x128 25x137 25x184 30x173 Ammunition length, mm 168 203 223 288 290 Projectile weight, gram 97 110 172 222 250 Core weight, gram 72 82 130 180 190 Core diameter, mm 12.7 15.6 17.6 18.0 Core area, cm2 1.26 1.91 2.43 2.54 Muzzle velocity, m/sec 1160 1300 1120 1180 1340 Recoil momentum, kg x s 16.8 22.4 31.8 44.6 59.7 Shooting from the air into the water at range 100m Velocity “V” (m/sec) and energy “E” (k Joule) at underwater range “X” (m) X V E 30 700 902 33.4 781 39.6 831 62.2 984 92.0 60 423 6.4 625 16.0 545 19.3 585 30.8 722 49.5 90 256 2.6 433 7.7 380 9.4 412 15.3 530 26.7 120 155 0.9 300 3.7 265 4.6 7.5 389 14.4 150 - 209 1.8 185 2.2 204 286 7.8 Commercial in Confidence © DSG Technology AS

Shooting from the air into the water at range 100m Calculated characteristics of 20…30-mm ammunition with “Type F” underwater projectile Ammunition 20x102 20x128 25x137 25x184 30x173 Ammunition length, mm 168 203 223 288 290 Projectile weight, gram 110 120 170 190 230 Core weight, gram 85 95 130 150 Core diameter, mm 9.0 Core area, cm2 0.64 Muzzle velocity, m/sec 1080 1240 1130 1270 1390 Recoil momentum, kg x s 17.2 22.8 31.8 43.9 59.1 Shooting from the air into the water at range 100m Velocity “V” (m/sec) and energy “E” (k Joule) at underwater range “X” (m) X V E 30 705 21.1 876 36.4 897 52.3 1039 81.0 1165 115 60 461 618 18.1 712 32.9 850 54.2 976 80.9 90 301 3.9 437 565 20.7 695 36.2 817 56.7 197 1.6 308 4.5 449 13.1 568 24.2 685 39.9 129 0.7 218 2.3 356 8.2 465 16.2 574 28.0 Commercial in Confidence © DSG Technology AS

Shooting from the air into the water at range 100m Calculated characteristics of 20…30-mm ammunition with “Type U” underwater projectile Ammunition 20x102 20x128 25x137 25x184 30x173 Ammunition length, mm 168 203 223 288 290 Projectile weight, gram 105 115 165 220 250 Core weight, gram 82 90 125 180 200 Core diameter, mm 12.7 14.5 16.0 16.5 Core area, cm2 1.26 1.65 2.0 2.13 Muzzle velocity, m/sec 1110 1270 1150 1190 1340 Recoil momentum, kg x s 17.2 22.6 31.5 44.6 59.7 Shooting from the air into the water at range 100m Velocity “V” (m/sec) and energy “E” (k Joule) at underwater range “X” (m) X V E 30 770 24.3 940 39.8 883 48.7 991 88.4 1163 169 60 534 11.7 697 21.9 678 28.7 825 61.2 992 123 370 5.6 516 12.0 521 17.0 687 42.5 854 91.2 120 257 2.7 383 6.8 400 10.0 572 29.4 735 67.5 150 178 1.3 283 3.6 307 5.9 476 20.4 633 50.1 Commercial in Confidence © DSG Technology AS

Comparison of “W” parameters for 30mm ammunition E – energy of collision between core (bullet) and target S – area of contact between core (bullet) and target Parameter of effect upon target & explosive: W = E x S (k Joule x cm2) Ammunition 30x173 Projectile type R U F RAMICS Parameter “W” at underwater range “X” X W m k Joule x cm2 30 233 360 73.6 50.1 60 125 262 51.8 25.6 90 67.8 194 36.3 13.0 120 36.6 144 25.5 6.6 150 19.8 106 17.9 3.4 At 150metres underwater range, MEA types have up to 31 x greater Kinetic Energy Area compared to MK258 projectile – from same weapon Commercial in Confidence © DSG Technology AS

Comparison of “W” parameters for 30-mm ammunition Parameter of effect upon target & explosive: W = E x S (k Joule x cm2) E – energy of collision between core (bullet) and target S – area of contact between core (bullet) and target Ammunition 30x173 Projectile type R U F RAMICS Parameter “W” at underwater range “X” X W m k Joule x cm2 30 233 360 73.6 50.1 60 125 262 51.8 25.6 90 67.8 194 36.3 13.0 120 36.6 144 25.5 6.6 150 19.8 106 17.9 3.4 At 150metres underwater range, MEA types have up to 31 x greater Kinetic Energy Area compared to MK258 projectile – from same weapon Commercial in Confidence © DSG Technology AS

Other Options: 20 – 40mm MEA Rounds Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS Supercavitation & ASW Applications Anti-Torpedo Solution (Hardkill) Last 250 meters defense of ships – the ‘Inner Ring’ Arming Unmanned Underwater Vehicles (UUV) Defense against airborne threats, from below surface Diver support Mine Counter Measures Not just from helicopters Swarming Surface or Submerged Threats Ship defense using standard weapons New capabilities - Tactic Changing – Rule Changing Commercial in Confidence © DSG Technology AS

Medium & Larger Caliber MEA New Capabilities for Undersea Defense 12.7mm to 40mm (and up to 155mm) Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS MEA: Solution for Armada threats Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS Low Angle Capability MEA Other supercavitating ammo min. 2 degrees min. 60 degrees Thus only MEA Supercavitating Ammunition can be used from low angle needed to fire from ships target Commercial in Confidence © DSG Technology AS

Anti-Torpedo Solution Enhanced Effects of the ‘Super’ Cavity: - near misses are still effective - destructive effect of collapsing cavity even with 200mm near misses - cavity persists in water (more than 30meters for 30mm) - increases chances of affecting target - hydro-static shock extends damage-radius - more than 1 meter radius in surrounding water volume Commercial in Confidence © DSG Technology AS

Proven Anti-Torpedo Effect 30mm cavitating core (underwater projectiles) Shooting of inert 324mm MK-46 type torpedo Sea water at range of 125m Commercial in Confidence © DSG Technology AS

Surface & Submerged Swarming Threat Midget Sub/Semi-Submersible like a bigger, slower torpedo Swarming Surface Attack Boats MEA not deflected by waves, even at low angles (>2 degrees) Bullets pass through waves/air and penetrate target above or below surface Standard Weapons CIWS with automated fire control .50 caliber deck gun MEA is an effective solution – even when submerged Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS UUV & Submarine Defence threat range <1000m angle >2deg u/w gun mounted with MEA armed UUV .50 cal threat Commercial in Confidence © DSG Technology AS

More Capabilities with MEA Without MEA 30 mm cannon required Heavy weapon Excessive recoil 9mm penetrator Fins required High angle ( >60 deg) needed Must be helicopter fired Multiple passes required for detect to engagement sequence With MEA 12.7 / 20 / 25 / 27 / 30 mm MEA Lighter-weight weapon Acceptable recoil 12.7 mm and larger With or w/o fins Very low angles ( >2 deg) Ship, land, or air platform MEA can neutralize naval mines from high or low angles Commercial in Confidence © DSG Technology AS

MEA for Swarming Surface Threats MEA Options: 12.7mm APSX -IN PRODUCTION-Muzzle-discarding sabot design 20mm –Ready for production 25mm –Ready for production 30mm –Ready for production Standard weapons M2HB or MK 49 Mod 0 (12.7mm) 20 mm Phalanx Mk-38 25mm machine gun Mk 46 Weapon Station with 30mm Spin-stabilized projectile, nearly full caliber Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS Other Applications Surface swarming threats Semi-submersible and submerged threats – visible but not otherwise defensible from helicopters. Mine counter measures, using 12.7mm to depths of 40 m Mine counter measures, using armed UUVs or ROVs (12.7mm to 30mm) Torpedo Hardkill – from ships or helicopters (using HF Sonar integrated with CIWS and MEA) Exceptional material penetration: including, ground, soil, mud, sand, armor – and water Extended capabilities for any weapon used or carried over water, on any platform. Commercial in Confidence © DSG Technology AS

Reference Points NATO NIAG Study 159 ‘Hardkill Torpedo Countermeasures’, recommended MEA supercavitating gunfire as the best complementary hardkill solution to Anti-Torpedo Torpedo for ship defense. (Reported June 2012) A European navy has successfully trialled MEA 12.7 APSX against torpedo with ‘fatal damage’ to real (static) torpedo, fired from air to water with single shots, through 25 metres water at 15 degrees angle of incidence. (Scaled trial: actual application will use Medium Calibre). DSGT has proven MEA effectiveness against real torpedo at 125 metres underwater range, using 30mm MEA, penetrating at very low angles. Commercial in Confidence © DSG Technology AS

Commercial in Confidence © DSG Technology AS Summary - MEA Supercavitating ammunition scalable to all calibers MEA works in water, from air to water, water to air Proven, patented technology Standard weapons ASW, TCM, UUV & MCM unique solutions New and enhanced capabilities, new applications Small caliber enhanced performance for SOF Improved stopping power, greater range – bridges a caliber gap Commercial in Confidence © DSG Technology AS

DSG Technology supercavitating Multi Environment Ammunition™ IT&T McLean, VA 22101 sg@inter2t.com * 703-929-0595 Commercial in Confidence © DSG Technology AS