How did we go from this in 2000….

1. How did we go from this in 2000….

2. To this in 2007…….. Market-leading oil field service provider of spoolable pipe products  2007: $70 million revenues with 20% EBITDA  Fast growth, high profitability in addressable $10 billion oil and gas markets   Dynamic geographically concentrated base of 100 plus customers  Proven benefits of 25% cost reductions over steel  41 patents (issued & pending) on fiber reinforced plastic pipe technologies  Significant future growth opportunities through product and service line extensions

3. A lot of $$$$$$...

4. Founded in 1986 as a spin-off from MIT Manufacturer of patent-protected advanced composite materials Initially targeted the sporting goods industry; sold that business in 2000: 12 consecutive world championships Windsurfing, 3 NHL scoring titles and 3 America’s Cup victories. Entered oil-gas industry with alliances with Conoco & Halliburton Produce composite pipeline which is a superior alternative to steel Immune to corrosion Continuous long lengths allow for much faster install time Lower installed cost and reduced field maintenance 100 plus customers (ConocoPhillips, ChevronTexaco, Shell, Occidental) Disruptive technology in a $10 billion addressable market growing 10-15% annually 10 years of strong IP: 41 issued and pending US, CAD patents with 20 years of unique manufacturing experience Fiberspar Overview Market leader of spoolable pipe technology to oil and gas producers

5. Large Market Opportunity Market for Fiberspar LinePipe is greater than $1B+ per year in North America Market trends are favorable – high industry activity, increasing corrosion Used in new construction and in existing operations to remediate aging infrastructure Fiberspar LinePipe value proposition today Significantly lower installed costs compared to industry standard steel 25% lower installed cost vs. steel using data from ConocoPhillips study of more than 350 installations between 1998–2005. $125M Savings over 20 years if Fiberspar LinePipe was used in place of steel Opportunities to extract value in future by proving over time Reduced operating costs No corrosion vs. slow corrosion Reduced in-field maintenance activities Improved uptime and reliability Other benefits of Fiberspar LinePipe Reduced health, safety, and environmental costs Reduced loss time injuries - 70% reduction in man-hours compared to steel. Reduced environmental and land owner costs Fiberspar’s initial product, LinePipe, fills major need

6. LinePipe Sales/Service Channel Consolidation Our technology and business model allows us to sell directly. Traditional Oil Field Business Model Oil Field End User - Oil Field End User Secondary Secondary Tubular Strip Steel Strip Steel Raw Raw Tubular Service Oil / & Gas Oil & Gas Service Distributor Processing Processing Producer Producer Mfg. Producer Material Material Producer . Company Mfg Company (Coat, Thread) Coat, Thread) Fiberspar Business Model End UserOil & GasProducer Raw Proprietary Design, Manufacturing & Deployment Proprietary Design, Manufacturing & Deployment Material

7. Financing Transactions • 1997 – Fiberspar Spoolable Products Founded – hired boutique investment bank in Houston to raise $5M equity capital • Halliburton invested in 1997 $5M, and also sponsored joint development – Series A Preferred Stock • 1999 – spent all of the capital raised on Halliburton sponsored development initiative – raised $3M more – Series B Preferred Stock • 2000 – sold our sporting goods business, raised $5M more equity capital from Halliburton, and $5M of development funding – Series C Preferred Stock (35% fully diluted equity position Series A, B, C) • 2001 – raised $10M of equity from Mitsubishi Corp, Series D Preferred Stock, International LinePipe Distribution agreement (15% fully diluted equity position Series D) – First commercial sales • 2003 – established LinePipe Subsidiary with s&p 500 oil field service company, Weatherford International – raised $10M. - $5M commercial sales, $5M loss • 2006 – sold license to WFT related to rights to downhole technology $19M, used proceeds to buyout ¼ of WFT interest, and all of Mitsubishi interest. $35M private equity financing failed 2 days to closing - $50M commercial sales, very profitable • 2007 – Raised $50M of senior and subordinated debt, bought out all of WFT’s interest, using combination of senior and seller financing, bought out 80% of HAL’s interest, $70M sales, very profitable. • 2008 – Raise $50M plus equity, to facilitate development of Fiberspar as independent oil field service company, with vision to grow at sustained 50% CAGR - $500M Revenue in 2012

8. Lessons Learned • Strategic financing is widely available, and competitive alternative to financial investment (angels, VC’s, private equity), but alignment of interests with strategic investors is often difficult to achieve. It enabled us to get where we are today, but also cost us significant time. • You are always raising money, and don’t get fixated on valuation – subsequent deals MUST be done at higher prices than earlier deals • Focus on value creation, not ownership % • Always raise money when you can, even if you don’t “need it”. • Later stage financing is based on results, early stage financing is based on potential – lots more alternatives for financing based on results, but harder to explain how much better things will be in future – so your results have to be superior to have superior alternatives. • Cross over from being measured on potential, vs. results is a one way street – can’t have it both ways. • To be a superior company, you need superior product, service, and financial resources.