Construction Solutions for the National Enrichment Facility Eunice, New Mexico

1. Construction Solutions for the National Enrichment FacilityEunice, New Mexico Presentation for the SMWIA Power Generation Summit June 18-19, 2008 Washington, D.C. By H-Y TECH Mechanical & Construction Services, LLC Albuquerque, New Mexico H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

2. What is the National Enrichment Facility (NEF)? • Vanguard facility for the next generation of nuclear power plants… • Facility for the refinement of uranium into the material fuel rods are formed from… • Owner – Louisiana Energy Services (LES), US subsidiary of URENCO (a Dutch company)… • Construction Manager -- Washington Group International (WGI)… • First nuclear facility simultaneously granted a construction AND operating license… • Uses the gas centrifuge method of refinement… H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

3. Where is Eunice, New Mexico? • Where many of these type of facilities will be built – in remote locations! • 330 miles, 5 hours from Albuquerque, NM – home of the parent companies… • 125 miles, 1½ hours from Lubbock & Midland-Odessa, TX… • 250 miles, 4 hours from El Paso, TX Eunice, NM H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

4. What is “H-Y TECH?” • H-Y TECH is: • Separate and distinct company… • Jointly owned by JB Henderson & Yearout… • Formed specifically to execute mechanical scope of work for the NEF project… • Is NOT a Joint Venture… Yearout Mechanical, Inc. H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

5. Background and Timeline • Background: • Strong support and encouragement from the State of New Mexico and Governor Richardson to use New Mexico contractors… • Outstanding local and community support of the project and H-Y TECH… • Timeline: • Initial meetings with WGI – October, 2006 • Contract executed with LES – April, 2007 • Work started – June, 2007 H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

6. Why form H-Y TECH? • No one New Mexico contractor with the band-width to execute a project of this magnitude… • Strong encouragement from the State and Governor… • Teaming of two companies with similar skill sets and cultures… • Maximizing total bandwidth by incorporating the best of each mother ship… H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

7. Challenges • Combining of two cultures into one – Non-negotiable Code of Ethics and Core values: • Respect and trust of one another and others… • Safety as a value… • Integrity… • Establishment of a successful cash flow model: • H-Y 100% funded by mother ships… • Early and frequent billings… • Aggressive management of receivables… • Establishment of Line of Credit for H-Y… H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

8. Challenges(continued) • Establishment of an NRC-recognized NQA-1 quality program: • Developed and gained approval of an NQA Quality program… • Mother ships have extensive DOE lab experience – NQA presented a higher level… • Building a new, separate company from scratch! • H-Y in and of itself is approximately the size of each parent company… • Build H-Y while not impacting parent companies… H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

9. Benefits • Provide work opportunities for Union contractors and craftsmen – preclude non-union contractors… • Develop the ability to team with other contractors to take on scope of this magnitude… • Development of a new revenue and profit source… • Develop expertise to support the nuclear market segment… • Develop a new team of construction professionals… • Provide a solution to an international energy supplier… H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

10. Questions?? H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC