Headway Technology Co., Ltd.

1. Headway Technology Co., Ltd.

2. Contents: I. Company Profile II. OceanGuardTM BWMS

3. Company Profile Group Members Techical Team BSH & DNV ISO9001 Products and Service Plant

4. Group Members North Ship & Ocean Engineering Co., Ltd. (NSO) Headway Technology Co., Ltd. Qingdao Dasheng Titanium Industry Co., Ltd. Shanghai Baway Technology Co., Ltd. Zhoushan IN Marine Engineering Co., Ltd. Advanced Optronic Devices (China) Co., Ltd. Bio Enterprise Co., Ltd. Qingdao Baway Real Estate Management Co., Ltd.

5. Technical Team Headway 150 employees； Including 108 engineers with bachelor or doctor’s degree, from fields of biology, environment, software, hardware, mechanical design, ship engineering, etc.

6. Related R&D Institution General Research Institute for Nonferrous Metals Harbin Industry University Wuhan University of Technology Institute of Oceanography Chinese Academy of Sciences Changchun Institute of Applied Chemistry Chinese Academy of Sciences Headway Harbin Engineering University

7. Headway Approval BSH ISO 9001 Quality Management System DNV ISO 9001 Quality Management System

8. Products and Service Products Global Service Network

9. Products Communication & Navigation Environment Protection Automatic Equipment

10. Communication & Navigation VDR/SVDR ECDIS BNWAS Speed Log Radar Echo Sounder GPS/GPS GYRO COMPASS ECDIS VDR/SVDR BNWAS

11. Environment Protection Ballast Water Management System LED Lighting Sewage Water Management System ODME Exhaust Gas Treatment Device OceanGuardTM BWMS LED Lighting

12. Water Ingress Detect & Alarm System Dewatering Control System • Automatic Equipment Water Ingress Detect & Alarm System Dewatering Control System

13. Global Service Network • ——Headway has subsidary company in Shanghai, • and has set up 15 offices at main port-cities in • China, including, Guangzhou, Shenzhen, • Dalian, Zhoushan, Shanhaiguan, Nantong, with • additional expansion being planned; • ——120 service bases in 56 countries and regions, • forming a complete global service system, • guaranteeing the after-sales service and technical • support.

14. Part of our partners

15. Plant Headway ----Professional Manufacturer of High-Tech Marine Equipment

16. VDR/SVDR Plant

17. OceanGuardTM BWMS Plant

18. Test Base of OceanGuardTM BWMS

19. Test Base of OceanGuardTM BWMS

20. II OceanGuard TM BWMS Background & Regulations AEOP Technology OceanGuard TM BWMS System Description Distinct Advantages Approval & Reference

21. Background & Regulations • Shipping moves over 80% of the world's commodities and transfers approximately 3 to 5 billion tonnes of ballast water internationally each year. • The introduction of invasive marine species into new environments by ships' ballast water, attached to ships' hulls and via other vectors has been identified as one of the four greatest threats to the world's oceans. • In 2004, IMO adopted the International Convention for the Control and Management of Ships' Ballast Water and Sediments, which will phase in requirements for ballast water treatment over the coming years.

22. Qingdao, China. July, 2008.

23. IMO D-2 Regulation/USCG Requirement& California Requirement

24. Excerpt from Report of California State Lands Commission

25. International Convention for the Control and Management of Ship’s Ballast Water and Sediments(2004) Timeline

26. Conditions for Entry-into-Force • Conditions • •No less than 30%states ratified; and • •No less than 35%of the world total merchant shipping gross tonnage. • The Convention will enter into force 12 months after the date on which the above conditions have met • Status of Ratification (by March, 2012) • •33 States; • •26.46%of the world total merchant shipping gross tonnage.

27. USCG Requirement Timeline • Proposed the concept of AMS (alternative management system); • BWMS should be tested in an independent laboratory; • Additional requirements, including cleaning ballast tanks regularly to remove sediments, removing fouling from the hull, piping and tanks on a regular basis, etc.

28. Background & Regulations AEOP Technology OceanGuard TM BWMS System Description Distinct Advantages Approval & Reference

29. Technologies Solid-liquid separation • Filtration(screen or disc type) • Hydro cyclone • Coagulation + • Ozone Disinfection Chemical Disinfection and dechlorination • Chlorination • Electrochlorination/Electrolysis • Seakleen (Menadione based) • Residual chlorine neutralization Ballast Water Treatment Technologies • Ultraviolet(UV) irradiation Physical Disinfection • De-oxygenation • Heat (thermal treatment) • Magnetic treatment (mix of physical and chemical) Microagtation • Cavitation • Ultrasound Advanced Oxidation • Using Tio2, OH, Fe 6 + and others

30. History of Headway R&D • 2002, cooperation with Harbin Industry University, using UV technology to treat ballast water; • 2004, developed O3+UV technology for BWT; • 2005, R&D for APOP (Advanced Photocatalysis Oxidization Prcess ) technology; • 2006, cooperation with Changchun Institute of Applied Chemistry Chinese Academy of Sciences, using Plasma Discharge for BWT; • 2007, cooperation with China Ocean University, on R&D for the test and measurement methods for BWT; • 2007, cooperation with Harbin Engineering University, fixed the method for BWT, using AEOP (Advanced Electrocatalysis Oxdization Process) technology; • 2007, OceanGuardTM BWMS is listed as the National Torch Project; • 2008, OceanGuardTM BWMS is financed by Ministry of Industry and Information Technology of P.R.C.; • 2008~2010, OceanGuardTM BWMS is tested in NIVA Facility, Norway; • March, 2010, IMO Basic Approval; • Oct., 2010, IMO Final Approval; • March, 2011, CCS Type Approval; • Nov., 2011, DNV Type Approval

31. Advanced Electrocatalysis Oxidation Process, is to kill the microbes, bacteria and viruses in the water and reduce other organics through destroying the cell membrane of the microbe by using the special semiconductor materials under electron excitation and the hydroxyl radicals (·OH) formed by water molecules. Advantageof ·OH Less energy is needed to destroy the cell membrane of bacteria -> Low Energy. Bacteria, after being destroyed by ·OH, will totally disappear -> Single Treatment Exist for 10-6 s -> No by products. Strong oxidizability, high electric potential -> Fast sterilization speed. No influence by chromaticity, turbidity, speed, temperature, PH, or salinity of the water, etc -> Can work in Fresh water. AEOP

32. Difference between from Electrcatalysis and Electrolysis

33. OceanGuard TM BWMS Background & Regulation AEOP Technology OceanGuard TM BWMS System Description Distinct Advantages Approval & Reference

34. OceanGuardTM BWMS Filter Control Center EUT Unit

35. Necessity of Filtration Step • International Convention for the Control and Management of • Ship’s Ballast Water and Sediments

36. OceanGuardTM Filter Automatic backflush, 50 micros.

37. Test Base in Zhoushan: Headway Filter & Boll Filter

38. Specification of Filter

39. EUT Unit • Electro-Catalyst Unit • Ultrasound Unit • EUT Power

40. Specification of EUT Unit

41. Control Unit Sensors Control Center Power Distribution Unit

42. Control Record Display Alarm Control Unit

43. Interface of Sensors Interface of Pipes Interface of Alarm Interface of Log

44. Salinity Meter Sensor Flow Meter TRO Unit

45. Salinity Meter TRO Unit Flow Meter

46. Measure Salinity of water correctly. • Suitable for any water quality, fresh water, brackish water, seawater, high salinity water. • Box includes Salinity sensor, controller, cable. • Magnetic Type. • Measure instantaneous flow & total flow. • Suitable for different water quality. Salinity Meter Flow Meter TRO Unit • Compact, reliable, precise detector for TRO. • Easy to operate • 225X215X125m • IP 65

47. Power Distribution Unit • Control equipment of power supply for Ocean Guard™ Ballast Water Management System; • Junction Box input is marine AC three-phase AC440V/380V and AC single-phase AC220V, and the output is AC440V/380V , AC220V and DC24V AC440V/380V Electrocatalysis part of EUT Unit, Filter, TRO measuring pump AC220V Control unit, Ultrasonic part of EUT unit, TRO meter, Salinity meter DC24V TRO metering pump

48. OceanGuard TM BWMS Background & Regulation AEOP Technology OceanGuard TM BWMS System Description Distinct Advantages Approval & Reference

49. 6 Advantages • Perfect Sterilization Performance • Small Size, Low Power Consumption • Less Maintenance • No Corrosion • Compact Design, Full Intergration • Single Pass

50. Perfect Sterilization Performance • Data from Landbased testings and Shipbboard testingd indicate the fulfillment of the • California requirements (SB497).