CONSORTIUM KZU HOLDING GROUP YOUR RELIABLE PARTNER IN CONSULTING ENGINEERING MANUFACTURE AND ERECTION OF STEEL STRUCTURES SUPERVISION TRADING

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1 CONSORTIUM KZU HOLDING GROUP YOUR RELIABLE PARTNER IN CONSULTING ENGINEERING MANUFACTURE AND ERECTION OF STEEL STRUCTURES SUPERVISION TRADING

2 KZU HOLDING GROUP COMPANY PROFILE The company was found in 1992 in Prague, Czech Republic, as a holding structure in which a major owner is Dr. Eng. Marin Beloev. Under his management was found in 1966 the state company Control and welding devices in Bulgaria KZU Sofia, which was leader in the welding engineering and welded structures till After 1992 most of the engineering personnel was transferred into the new company which is 100% private capital and becomes carrier of the experience and the know-how of the previous company. Our main experience is in the following fields: Large scale storage tanks, pipelines and facilities in the petrochemical industry, petrochemical terminals, compressor stations for pipelines; pressure vessels including for LPG; Steel structures, pipelines and facilities of all types power stations; Cement and limestone industry; Food processing industry including brewery; Civil and industrial building with the systems Filigran and steel structures; Supervision and management of projects, as well as, quality control, quality management of building and welding works. In the structure of the Consortium are working specialized production facilities with modern equipment for steel structures and apparatus following the highest criteria for quality. Certification: The enterprises and the personnel are certified according EN ISO 9001, TUV (HP0) SLV (DIN ) for steel structures and pressure vessels and EN729, The organization chart for functional commitment of the companies shows, that engineering, marketing and contracting is common for Consortium. The pilot company is KZU GROUP Prague with branch in Sofia. Major personnel of the Consortium Description Employees Design engineers 12 Engineers 27 Technical supervisors 24 Welders 82 Fitters 158 Welding technologists and flow inspectors 16 KZU Holding Group has high qualified permanent personnel, as shown above, which is enlarged with manpower with general specialists if necessary for every given project. Six of the engineers have certificate for international welding engineer (IWE) Four of the technologists have certificate for international welding technologist (IWT)

3 KZU HOLDING GROUP COMPANY PROFILE Recent Projects Lately the companies have finished projects in Germany, The Czech Republic, Greece, Syria and mostly in Bulgaria for which our personnel have a significant experience in building oil terminals, fabrication and erection of unique steel structures, technological facilities, compressor and pumping stations for transition pipelines. Production activity Cylindrical, above and underground ground storage tanks for bulk liquid products. The company is fully equipped with machines for production and erection of these facilities. Pressure vessels for storage of liquefied gases Pipelines and equipment, pump and compressor stations Steel structures for civil and industrial buildings. Technological pipelines. Non-standard large-scale steel sections for bridges and etc. Erection of spherical tanks for storage of liquefied gases. Equipment for the food processing industry, such as grain silos, reactors etc. Cement silos and structures for this industry. KZU Holding has worked out welding procedures for welding of transition pipelines. Diagnosis and evaluation of the remaining life of welded steel structures and facilities. Main activities of the members of the consortium 1. KZU GROUP LTD, Prague legal representative of the Consortium, contracting, trading and manufacturing of steel structures and facilities. 2. KZU HOLDING LTD. Consulting, design welding engineering, manufacturing of welded structures, erection of storage tanks, pump and compressor stations, construction of transition pipelines. 3. SILOTEH BUL LTD. construction and equipment of projects for processing of agriculture products, grain silos and live stock. 4. TERA BM LTD civil building of apartment and office houses, installation works in industrial projects. 5. TANK OIL LTD. Equipment of petrol and gas terminal, distribution of fuels. Partners Laboratory for NDT with x-ray and ultrasonic test of welded joints TGT Consulting design and supervision of transition pipelines. For additional information we are at your disposal.

4 References No Description of the Project Investor / Client Year of completion 1 Three underground storage tanks 6500 m3 each for gasoline. 2 Tank farm, consisting of 3 storage tanks m 3 each and 1 tank m 3 with double bottom and cup all with floating roofs with pump station.mero IKL, Vohburg, Germany One tank of m3 with double bottom. 4 Two tanks for molasses of m3 each and two tanks of m3 each. 5 Two tanks with double bottom of m3 each. 6 Storage tanks with fixed roof, cup and double bottom for: pcs. volume m3 -for fuel oil- 3 pcs. volume m3 - for fuel oil- 2 pcs. volume m3 - for fuel oil- 1 pcs. volume m3 - for fuel oil- 1 pcs. volume 500 m3 - for fuel oil- 8 pcs. volume 360 m3 - for petrol products and pipe connections. 7 Storage tank of volume m3 with fixed roof, cup and double bottom for waste waters. Ceska Rafinerska Litvinov, Czech Republic. MERO IKL, Vohburg, Germany SUGAR RAFINERY PFEIFER & LANGEN, Appeldorn, Germany SUGAR RAFINERY JULICH, Germany OILTANKING/NOELL in Gera, Germany. ČESKA RAFINERSKA AS Czech Republic CHEMOPETROL AS - Litvinov, Czech Republic

5 References 8 Storage tanks with fixed roof, cup and double bottom: with pipelines and pump stations; 4 Pcs. х m3 for petrol products. 9 Storage tanks with volume m3, with fixed roof, cup and double bottom - 11 pcs. for - for petrol products with pipelines and pump stations 10 Warehouse for BMW Wackersdorf, Germany 11 Cement silos in 4x500 t. capacity Bosnia and Herzegovina 12 Forum roof of the Munich airport center West. Pipe trusses 25 m. long. See picture enclosed 13 1 x 5000 m3 for BTX fraction in Litvinov, Czech Republic - CEPRO AS- Tremoshna near Pilsen, Czech Republic CEPRO AS - Cerekvice nad Bystrici, Czech Republic Stahlbau Wolf Rosenhaim, Germany Plena, Bulgaria 1998 Forum roof of the Munich airport center West Chemopetrol SA Litvinov Kerosene storage tank m3, at Munich airport JPM Ingenieurtechik, Germany 15 Filling station Chemopetrol Storage tank farm 10x m3 for Banias Refinery Company 17 Pumping stations for transitions pipelines 18. MELUT BASIN OIL DEVELOPMENT PROJEC design, fabrication of 7 x m3. Design of storage tanks for Field Production Facility & Central Processing Facility. SA Litvinov BUTEC SAL, Lebanon Ukraine Sudan

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7 PRODUCTION CAPABILITIES KZU Holding is a company with vast production experience, which is based on the big number of projects that we have constructed. Nowadays we have two own production factories. The strong competitive environment and our exacting, partners and the short terms for delivery require to be closer to the client. That s why we have made our facilities in a way to be closer to the central European and Bulgarian clients. The factory for steel structures in Varna Bulgaria is situated in the Western Industrial zone of the city. We have very well developed infrastructure and close connection to the port of Varna, railway and road connections are available next to the factory. The factory is equipped with the brand new steel working machines which gives us the opportunity to manufacture wide range of steel structures, vessels and process equipment. The annual output of the factory could reach tons, depending of the type of the structures. The second factory is in the city of Chomutov, Czech Republic. It has similar capabilities as in Varna. Main machines 4 rolls hydraulic plate bending machine with CNC Bandsaw Hydraulic guillotine shear Oxy fuel portal cutting machine with CNC Horizontal drilling machine Radial drilling machine MAW machines SMAW machines SAW machine ESAB welding column with boom Oxy fuel copy cutting machine Lathes/milling machines Capacity 3000x30 mm Ø330 mm 3100x16 mm 12000x4500 mm View from our factory in Varna.

8 Sights of our activity CNC oxy fuel portal cutting machine CNC plate bending machine General view of the factory in Varna Despatch of storage tank structures at port Varna

9 Sights of our activity Forum roof of Munich airport center west. Pipe trusses with dia. 270 mm 25 m long Cement silos in Bosnia & Herzegovina capacity 1000 t. We are specialized in erection spheres Storage tank in Czech Republic V=10000 m3

10 Sights of our activity Storage tank farm in Vohburg, Germany 1x80000 m3 & 3x40000 m3 Storage tank farm in Czech Rep. 11x10000 m3 With short terms for commissioning it is necessary to erect the shell and the roof simultaneously. The roof was lifted with 500 t crane

11 Curriculum Vitae of key personnel Curriculum Vitae Dr. Eng. Marin Beloev born in Stroevo, Plovdiv region Nationality Bulgarian High education: 1962 Technical university in Sofia mechanical engineer 1973 Welding institute E.O. Paton in Kiev Ph.D in welding Experience: Founder and General Manager of specialized organization for welding and testing of the joints (KZU) as structure of the Ministry of construction Founder of company Gasstroymontaj. This company is founded with aim to build the transition pipeline from The Soviet Union to Bulgaria and was responsible in front of the Ministry of construction for the first stage of 400 km starting from the Bulgarian Romanian border and ending in the city if Vratza for the period 1972 till For the period as a General Manager of KZU Sofia founder of the most powerful specialized company in the field of welding with permanent 3200 employees which were divided in the following directions: 1. Industrial production of welded steel structures such as: - Large scale storage tanks for the petrol industry; - Large scale penstocks for the hydro power plants - Pressure vessels (incl. rail wagons) for liquefied gases and ammonia - Technological equipment like boilers, structures for civil and industrial buildings, turbine halls for nuclear power plants with total annual capacity of tons. 2. Erection and welding activities mainly in the field of large scale storage tanks for the petrol industry. Big experience in the equipment of storage tanks with floating roofs with volume up to m3 and spheres with volume up to 3000 m3. Execution of high responsibility welding works in the installation of turbine and the nuclear reactor of power station Kozlodui. All welding works on the first contour of the same power station in Bulgaria and the specialized lining of the premises for radioactive fluids. In the petrochemical industry are executed erection and installation of furnaces, reactors made of various alloys such as: inconel, incaloy, aluminium, AMg5, Titan, Copper and other. In the gas industry we took part in construction of gas compressor stations, gas purification systems, transitional pipelines. The total number of people in this direction was Control of materials and welded joints. KZU was a controlling the quality of all companies working under the Ministry of construction. In this system were working welders, which were certified in the qualification centre of KZU. The first class welders which were around 5000 were checked every two years. In this qualification centres were prepared the welders for building the gas transition system of Bulgaria. The control over the execution of the welding projects was assigned to welding technologists and flow inspectors. In this direction were working 250 pepole. Since June 1992 Dr. Beloev founded private group of companies with the main personnel from the state company. For more details we are at your disposal.

12 Contact info Business address: 1700, Sofia 12, Prof. Hristo Vakarelski str. Bulgaria Tel: Fax: office@kzu-group.com Contact persons: George Beloev Marketing Manager