1. Status Report on SD/I Saltwater Test Program NMMA/EPA Meeting January 24, 2006

2. Status of program –Short of targeted hours of operation –Issues with exhaust manifolds on two of the three boats –Additional funding needed Planned next steps –Resolution of issues –Continued testing Overview

3. Maxum Malibu Sea Ray No emission data taken on in-use engines 21 ft sterndrive 4.3 L V6 37 hours accumulated No apparent problems 19 ft inboard straight-drive 5.7 L V8 100 hours accumulated Water leaks at thermocouples upstream of catalyst 22 ft sterndrive 5.7 L V8 OBD-M system 55 hours accumulated Catalyst positioned too close to water mixing point Status Summary

4. Maxum Catalyst location close to engine (away from water mixing point) No visible deterioration of catalysts PPM testing shows good test results Next Steps: Continue to operate in existing configuration

5. Next Steps: Replace parts of manifold that have developed risks of leaks Keep same manifold design (except no through-jacket thermocouples upstream of catalysts) Put boat back in service with new catalysts Malibu Water leaks at thermocouple fittings upstream of catalysts Damage through the catalyst inlet exit

6. Sea Ray Next Steps: Redesign manifold to move catalysts closer to engine/add baffles Put boat back in service with new catalysts/manifolds Catalysts very close to water mixing point Oxygen sensor still operational Salt deposits on catalyst exit inlet exit

7. Planned Next Steps Rebuild manifolds for Malibu and Sea Ray –Modify catalyst location on Sea Ray –Re-baseline emissions –Begin operation from zero hours Continue operation with Texas Parks & Wildlife –Boating season coming up soon –Evaluate hour accumulation at end of season Other modifications –Better maintenance of engines (flushing) –Modify thermostat housings Work out funding for additional operation