		Project Finance Advisory Services Valuations *Capital Technology, Inc. (CTI)*
For decision makers: Considerations in selecting a Project Finance Advisor		CTI has an established track record of completing complex asset and equity sale transactions at premium prices. One of the secrets to CTI's success is its unique approach to valuation, whether the asset being appraised is a single project, a project portfolio or an entire company. How CTI's approach differs Because the assets CTI is being asked to value are usually privately held, CTI will often employ a discounted cash flow methodology. While many of CTI's competition do the same, CTI's approach differs substantially: CTI develops its cash flow projections through intensive digging and analysis with the client company's staff, culminating in strategic reviews with top management. During this process, CTI frequently tests the most critical assumptions with industry contacts developed over the course of many years at engineering firms, other developers, fuel suppliers, major law firms and tax advisors. CTI's principals typically have 25+ years of experience, with many having run sizeable businesses themselves. Once we have completed the basic assessment of the company or project, we go beyond the usual question of "What is the asset worth", to ask "What could it be worth if certain changes are made?" Uncovering opportunities to add value takes experience. While academically highly qualified, CTI's counterparts at the Wall Street investment banks and major accounting firms usually lack this experience. Another difference is that CTI's economic modeler is an integral part of the team, typically preparing several sets of projections during the course of reviews with management. The end product of this intensive effort is a set of projections that CTI knows will withstand rigorous due diligence. Of equal importance, CTI maintains relationships with a wide range of investors, in the process recording their strategic objectives, return targets, accounting and tax constraints and budget goals. Knowing who the buyer is likely to be and what return they are likely to require is crucial to producing an accurate valuation. Finally, CTI follows up with buyers one to two years down the road to see how the projects or businesses are performing relative to CTI's original projections. This feedback is taken very seriously by CTI and over time has resulted in considerably more accurate valuation results. A major benefit of this rigorous approach is that it builds investor confidence, resulting in a willingness to commit top people resources to your company's sale proposal. Valuation examples Gasification technology valuation - Quantified the advantages of the E-Gas gasification technology owned by CTI's client over competing technologies owned by Shell and Texaco. Built plant-level models complete with project financing to compute breakeven electricity production cost levels. Cross-checked capital cost, operating cost and market penetration assumptions with a variety of industry contacts before and after approaching prospective buyers. Finally, valued the business by estimating the number of licenses that could be sold by country around the world over a 20-year period. Armed with the valuation, CTI went on to approach 117 investors around the world, ultimately leading to E-Gas's purchase by ConocoPhillips. Al Turi landfill gas project - valued this landfill which had 14-cent/KWh power and considerable expansion potential partially offset by unfamiliar English engines requiring compression and a checkered operating history that only recently had been turned around under professional management. CTI's refined projections were used to convince buyers of the project's value. Two years later, the winning purchaser confirms that actual performance has been right on target with CTI's project projections. Independent valuation of powdered onion and garlic company - served as the court-appointed independent appraiser to break a stalemate between two brothers who co-owned this highly profitable supplier of baby food ingredients. The court selected CTI's appraisal figure over ones submitted on behalf of the brothers by Morgan Stanley and Hambrecht & Quist. English landfill gas projects - this project required CTI to understand the UK's new Renewables law as it affected five operating projects plus four others under development. The ultimate buyer used CTI's pricing methodology for the original five projects and went on to use CTI's economic model as the basis for acquiring the four still under development. Medical company independent valuation - retained by G.D. Searle to value this privately-held startup company which had developed an externally-rechargeable heart pacemaker. The valuation formed the basis for G.D. Searle increasing the amount of their investment in the company. White/Westinghouse acquisition - this independent valuation and financing plan resulted in the acquisition by White Consolidated Industries of the Major Appliance Division of Westinghouse and set the stage for follow-on acquisitions by White Consolidated. Going beyond the valuation stage Always a prerequisite to a successful sale, a well-constructed valuation can be the sole end product of an assignment. Alternatively, expending $25,000 to $45,000 to get the valuation "in the can" provides the client with a low-risk way to maximize its flexibility in choosing when to go to market. If a decision is later made to proceed with a full sale, CTI can usually have the information memorandum completed and on its way to prospective purchasers within one month. Target clients U.S. companies awaiting the outcome of the Energy Bill that want to know what one or more of their projects are worth in the event they may need to raise development capital quickly. Firms with successfully operating projects that want to take advantage of the deal vacuum that is expected to exist during the 6 to 8 months it may take for Congress to approve the Energy bill. Companies needing an objective party to value the shares of an owner who for whatever reason wants to redeploy his or her capital. Project and Business Valuation Experts Member, National Association of Securities Dealers (NASD) and the Securities Investor Protection Corporation (SIPC) David R. Siever, Chairman, Capital Technology, Inc. 46 Tory Hill Lane, Rowayton, CT 06853 203-853-0220 Fax: 203-853-0535 e-mail: drsiever@optonline.net www.capital-technology.com

Project Finance Advisory Services

Valuations

Capital Technology, Inc. (CTI)

For decision makers: Considerations in selecting a Project Finance Advisor

CTI has an established track record of completing complex asset and equity sale transactions at premium prices. One of the secrets to CTI's success is its unique approach to valuation, whether the asset being appraised is a single project, a project portfolio or an entire company.

How CTI's approach differs

Because the assets CTI is being asked to value are usually privately held, CTI will often employ a discounted cash flow methodology. While many of CTI's competition do the same, CTI's approach differs substantially:

CTI develops its cash flow projections through intensive digging and analysis with the client company's staff, culminating in strategic reviews with top management. During this process, CTI frequently tests the most critical assumptions with industry contacts developed over the course of many years at engineering firms, other developers, fuel suppliers, major law firms and tax advisors.

CTI's principals typically have 25+ years of experience, with many having run sizeable businesses themselves. Once we have completed the basic assessment of the company or project, we go beyond the usual question of "What is the asset worth", to ask "What could it be worth if certain changes are made?" Uncovering opportunities to add value takes experience. While academically highly qualified, CTI's counterparts at the Wall Street investment banks and major accounting firms usually lack this experience.

Another difference is that CTI's economic modeler is an integral part of the team, typically preparing several sets of projections during the course of reviews with management. The end product of this intensive effort is a set of projections that CTI knows will withstand rigorous due diligence.

Of equal importance, CTI maintains relationships with a wide range of investors, in the process recording their strategic objectives, return targets, accounting and tax constraints and budget goals. Knowing who the buyer is likely to be and what return they are likely to require is crucial to producing an accurate valuation.

Finally, CTI follows up with buyers one to two years down the road to see how the projects or businesses are performing relative to CTI's original projections. This feedback is taken very seriously by CTI and over time has resulted in considerably more accurate valuation results.

A major benefit of this rigorous approach is that it builds investor confidence, resulting in a willingness to commit top people resources to your company's sale proposal.
Valuation examples

Gasification technology valuation - Quantified the advantages of the E-Gas gasification technology owned by CTI's client over competing technologies owned by Shell and Texaco. Built plant-level models complete with project financing to compute breakeven electricity production cost levels. Cross-checked capital cost, operating cost and market penetration assumptions with a variety of industry contacts before and after approaching prospective buyers. Finally, valued the business by estimating the number of licenses that could be sold by country around the world over a 20-year period. Armed with the valuation, CTI went on to approach 117 investors around the world, ultimately leading to E-Gas's purchase by ConocoPhillips.

Al Turi landfill gas project - valued this landfill which had 14-cent/KWh power and considerable expansion potential partially offset by unfamiliar English engines requiring compression and a checkered operating history that only recently had been turned around under professional management. CTI's refined projections were used to convince buyers of the project's value. Two years later, the winning purchaser confirms that actual performance has been right on target with CTI's project projections.

Independent valuation of powdered onion and garlic company - served as the court-appointed independent appraiser to break a stalemate between two brothers who co-owned this highly profitable supplier of baby food ingredients. The court selected CTI's appraisal figure over ones submitted on behalf of the brothers by Morgan Stanley and Hambrecht & Quist.

English landfill gas projects - this project required CTI to understand the UK's new Renewables law as it affected five operating projects plus four others under development. The ultimate buyer used CTI's pricing methodology for the original five projects and went on to use CTI's economic model as the basis for acquiring the four still under development.

Medical company independent valuation - retained by G.D. Searle to value this privately-held startup company which had developed an externally-rechargeable heart pacemaker. The valuation formed the basis for G.D. Searle increasing the amount of their investment in the company.

White/Westinghouse acquisition - this independent valuation and financing plan resulted in the acquisition by White Consolidated Industries of the Major Appliance Division of Westinghouse and set the stage for follow-on acquisitions by White Consolidated.

Going beyond the valuation stage

Always a prerequisite to a successful sale, a well-constructed valuation can be the sole end product of an assignment.

Alternatively, expending $25,000 to $45,000 to get the valuation "in the can" provides the client with a low-risk way to maximize its flexibility in choosing when to go to market. If a decision is later made to proceed with a full sale, CTI can usually have the information memorandum completed and on its way to prospective purchasers within one month.

Target clients

U.S. companies awaiting the outcome of the Energy Bill that want to know what one or more of their projects are worth in the event they may need to raise development capital quickly.

Firms with successfully operating projects that want to take advantage of the deal vacuum that is expected to exist during the 6 to 8 months it may take for Congress to approve the Energy bill.

Companies needing an objective party to value the shares of an owner who for whatever reason wants to redeploy his or her capital.

Project and Business Valuation Experts

Member, National Association of Securities Dealers (NASD) and the Securities Investor Protection Corporation (SIPC)

David R. Siever, Chairman, Capital Technology, Inc. 46 Tory Hill Lane, Rowayton, CT 06853 203-853-0220 Fax: 203-853-0535 e-mail: drsiever@optonline.net www.capital-technology.com