The New Wave in Energy Tony Davies Executive Chairman

Distributed, on Site, Power Generation 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 site power generation.”

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

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

EFFICIENT POWER SECURE POWER BPS MARKET Distributed Cogeneration Power UPS Standby Gensets SECURE POWER

Quality Power Power Availability Electricity Quality Clean Power POWER QUALITY HIGH EFFICIENCY LOW EMISSIONS

GLOBAL MARKETS 2000 ELECTRICITY SALES $800bn Annual Sales (incl. site & services) ELECTRICITY SALES $800bn POWER GENERATION PLANTS > MW $60bn ($100bn) COGENERATION PLANT $5bn ($10bn) GENSETS <MW UPS $10bn

Power Generation Market for MicroTurbine 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 2000 2005 2010 Year Bowman Source March 2001

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)

Market Strategy 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.

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)

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

Core Technology & Skills Power Conditioners - Electronics and Software - Inverters and Filters 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 Control Systems - Power Conditioners - Engines - Remote control & monitoring MTG Technology - Oil free Bearing Systems - Low emission combustors System Packaging and Applications - Thermal and acoustic management - Integrated CHP solutions Joint Venture Developments Waste Heat Boilers Chillers Recuperators Gas Boost Compressors

High Speed Alternators 60kW 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 115kW 30cms

Power Conditioners 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) 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

BOWMAN Product Status Power conditioners High speed alternators 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.

Business Challenges for 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.

Distributed, on Site, Power Generation 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 site power generation.”