1. © Copyright 2003 Frost & Sullivan. All Rights Reserved. North American Cogeneration Equipment Market Sporadic Nature of Orders Adversely Impacts Manufacturers Energy Group “To mitigate the negative impact of inconsistent orders, manufacturers will have to implement various cost control measures such as inventory minimization, rationalization of products and manpower, and diversification. The industry is also exploring new avenues such as re-powering of old plants with cogeneration plants and bundled services to retain profitability and customer loyalty in the highly competitive and mature market”

2. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Industry Trends Cogeneration equipment prices declined to the tune of 3 to 4 percent in the last two years Manufacturers have initiated efforts to control the eroding profits by way of minimizing production costs and innovative marketing techniques such as bundled services Re-powering of old plants with cogeneration plants gaining more acceptability among end users Powerformer is expecting a quantum jump in the market due to its superior advantages End users are seeking more efficient and less polluting cogeneration equipment to meet the stringent EPA emission regulations, save expenses on fuel and conserve natural resources

3. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: An in-depth analysis of the total North American cogeneration equipment market Geographical and end-user analysis of the cogeneration equipment market Demand, pricing and distribution analysis Market drivers, restraints, and challenges Market trends Market share of major cogeneration equipment manufacturers Strategic recommendations to improve market share

4. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: North America with specific market analysis on U.S. and Canada Proven methodology encompassing extensive primary and secondary data and research covering major cogeneration equipment manufacturers, products, and end-user groups Credible revenue forecast based on accurate data and analysis helps you formulate right market strategies A detailed analysis of current market trends Comprehensive understanding of cogeneration equipment industry, market dynamics, and strategic recommendations helps you formulate better business decisions

5. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants Find out how you compare to the competition Assess current and future drivers and restraints Understand the dynamics at work in different product and end-user segments Determine and exploit new market share opportunities Current Market Participants - Suppliers Know the conditions of the North American cogeneration equipment market Understand the market position of each supplier and their profiles Understand the market trends and challenges Understand the market strategies

6. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Who Will Benefit? (Cont’d) Current Market Participants - Customers Know the conditions of the North American cogeneration equipment market Understand market trends Understand the market challenges and strategies of manufacturers Investment Community Assess current and future drivers and restraints Understand market dynamics, strategy and growth initiatives Identify likely prospects of mergers and acquisitions Assess attractiveness of investing in the cogeneration equipment market

7. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What’s Included Market drivers, restraints and challenges Market analysis with data on cogeneration equipment, geographic regions and end-user groups Competitive analysis and future growth strategies Pricing and distribution analysis

8. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Market Participants ABB ALSTOM Babcock & Wilcox Co. Babcock Power, Inc. Bowman Power Systems, Inc. Capstone Turbine Corp. Caterpillar, Inc. Cummins Engine Co., Inc. Deltak LLC Detroit Diesel Corp. Deutzu Corp. Dresser-Rand Co. Elliott Co. Erie Power Technologies, Inc. Foster & Wheeler Energy International, Inc. GE Industrial Systems GE Power Systems IR Energy Systems Kato Engineering, Inc. MAN Engines & Components, Inc. Marathon Electric Mitsubishi Power Systems, Inc. Mitsubishi Engine North America, Inc. Nooter/Eriksen

9. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Market Participants (Cont’d) Optimus Corp. Pratt-Whitney Power Systems Rolls-Royce North America Siemens Westinghouse Power Corp. Solar Turbines, Inc. Turbec Americas, Inc. Tuthill Corp. Vericor Power Systems Vogt Power International, Inc. Volvo Penta of the Americas, Inc. Wartsila North America, Inc. Waukesha Engines

10. © Copyright 2003 Frost & Sullivan. All Rights Reserved.  Call toll free: 877 GO FROST (877.463.7876)  Fax toll free: 888.690.3329  E-mail: myfrost@frost.com  Visit: www.frost.com For More Information