1. © Copyright 2004 Frost & Sullivan. All Rights Reserved. North American Markets for Mechanical Prime Movers in the Oil and Gas Industry High Costs of Crude Oil and Natural Gas Likely to Drive Exploratory Efforts and Demand for Prime Movers Energy Practices Group “With crude oil and natural gas prices continuing to remain high, energy demand growing inexorably and the dependability of imported crude oil becoming increasingly questionable, indigenous oil exploration in North America is bound to grow. As a result, the demand for mechanical prime movers in the oil and gas industry is likely to improve appreciably.”

2. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Industry Trends Increasing cost of raw materials including steel, copper and aluminum is negatively affecting the profitability of market participants. Tough competition inhibits product price increase. Decreasing value of dollar against foreign currencies is helping indigenous market participants. Market is expected to grow at a rate of 3 to 3.5 percent per annum in line with growth of the oil and gas industry. The Environmental Protection Agency’s (EPA) requirement for lower emission levels of NOx, SOx and CO from gas turbines and reciprocating engines, and lower vibration levels of motors as per American Petroleum Institute’s specifications are driving technological improvements.

3. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Industry Trends (Cont’d) While the exploration and production segment accounts for 50-55 percent of the end-user market, the United States accounts for 81 percent of the North American market. Increasing stress being laid on total ownership cost by customers.

4. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: An in-depth analysis of the North American market for mechanical prime movers in the oil and gas industry Market drivers, restraints and challenges Pricing and technology/regulatory trends Market share of major prime mover equipment manufacturers End-user and geographical analysis and trends

5. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What We Offer North American market covered, with specific analysis of the United States and Canada. Proven methodology encompassing extensive primary and secondary data and research covering major prime mover equipment manufacturers, products and end-user groups. Credible revenue forecast based on accurate data and analysis, which will help in formulation of right marketing strategies An analysis of current market trends, including geographic, end-user, technology, and regulatory Thorough understanding of the oil and gas industry and the prime mover equipment markets that will help in formulating better business decisions

6. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants Get a view of the current market participants and the competition Benefit from a comprehensive analysis of current and future drivers and restraints Understand the dynamics of the various products and end-user segments, from an oil and gas industry perspective Get an opinion of new market share opportunities and ways to exploit them Future Market Participants Evaluate the condition of the North American mechanical prime movers market Understand the market trends and challenges Current Mechanical Prime Mover Users Gain a comprehensive understanding of the current North American mechanical prime movers market Identify the market trends and challenges

7. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Who Will Benefit? (Cont’d) Investment Community Assess current and future drivers and restraints Understand market dynamics, strategy and growth initiatives Assess attractiveness of investing in the North American mechanical prime mover equipment market

8. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What’s Included  Market drivers, restraints and challenges  Market analysis with data on prime movers equipment, geographic regions, and end-user groups  Competitive analysis  Pricing trends and demand analysis

9. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Caterpillar Dresser-Rand Elliott G.E. Industrial Systems G.E. Power Systems Manturbo Pratt & Whitney Reliance Motors Key Market Participants Rolls-Royce Siemens Westinghouse Solar Turbines Teco-Westinghouse Tuthill Corp. Wartsila Waukesha

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