1. © 2006 1Global Risk ENVIRONMENTAL RISKS & COMPLIANCE Global Economic Outlook Seminar May 2, 2006 Arthur N. Mabbett The Mabbett Group Mabbett & Associates, Inc.Mabbett & Associates Ltd.

2. © 2006 2Global Risk Evaluating Risk u Environmental, Health & Safety Considerations –Strategic Focus –Contaminated Land –Facilities-Regulated Building Materials –Operational Issues u Applicable Local Regulations –Current & Future –Environmental –Health & Safety –Product-Related

3. © 2006 3Global Risk Evaluating Risk u Current Compliance Status –Permitting –Facilities-Land Related –Processes & Products –Current & Future u Health Considerations –Travel & Workforce Impacts u Global Warming

4. © 2006 4Global Risk Environmental Assessment u Due Diligence Process - Structured - Project Focused - Multi-Media Approach - Liability Cost Estimates - Cost Avoidance/Containment – Management, Legal and Insurance Options

5. © 2006 5Global Risk u Contaminated Land –Past Historical Use –Future Clean-up Costs –Future Use Restrictions u Facilities- Building Materials –Asbestos, Lead, PCBs –Utilities –Security Environmental Assessment

6. © 2006 6Global Risk Compliance Status u Processes & Products –Are Manufacturing Processes Sustainable? –Are Products Sustainable? u Current Status –Operating Legally? –Pending Investigations? u Future Costs –Achieving Compliance –Maintaining Compliance

7. © 2006 7Global Risk European Union u WEEE/RoHS –End of Life Collection for Electronic Equipment –Use of Lead, Mercury, Cadmium, etc. u EuP –Eco-Design for Energy Using Products u IPPC –Broad Permitting Requirements u REACH –Chemical Testing and Manufacturing Requirements

8. © 2006 8Global Risk China u RoHS Legislation –Details Pending u Licenses for Certain Chemical Use u Personal Liability Under H&S Laws –Civil & Criminal Penalties u Foreign Investment-Higher Standards

9. © 2006 9Global Risk Brazil u RoHS-Like Restrictions u End-of-Life Responsibilities –Life Cycle Approach u Focus on Disposal, Reuse & Recycling Alternatives

10. © 2006 10Global Risk Health Considerations u SARS/Avian Flu u Travel Considerations –Restrictions u Business and Workforce Impacts –Emergency Response & Contingency Planning –Internal and External Considerations