SRUK BP

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1 Dear Entrepreneur, This presentation is for business men / entrepreneurs who are interested in a potentially huge return on their investment. Seller: Sela Robotix UK Buyer: British aerospace, Boeing, CASA, Bombardier etc. Product: Special patent protected systems for building airplanes using accurate and fast robots rather than a manual process. See slide 2 for details. Following documents support this presentation: 2. Company History 3. Business plan 4. Letter from Don Michael, V. President of Leica 5. CASA (Operation Structure) 6. CASA (Grant Funding Schedule) 7. CASA (SR Project Chart)

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Project 1: Drilling Sys. Project 2: Multi Axis Sys. Delmia UK Ltd Leica Geosystems UK Motoman UK Ltd Leica Geosys. UK Ltd Delmia UK Ltd PAR Sys. Inc (USA) Sela Robotix E.O.A Inc USA Sela Robotix UK Ltd Sela Robotix is now asking following contacts to provide a wing and/or a fuselage panel for demo to:CASA Spain, Aerospatial, British Aerospace, Daimler Benz, Bombardier Canada. Client: Shorts Brothers, Bombardier, Canada. Client: CASA, Spain. 2

Bombardier Shorts Brothers Project: 

Bombardier Shorts Brothers Project 3

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Company Value Jan 1996 - Sep 2000: Made close friends with Airbus, British Aerospace, CASA, Boeing etc. all expressed their total interest in the technology. September 2000 – Prototype was successfully tested and approved by British Aerospace, Defense Department – Eurofighter Project. May 2001: Don Michael, Vice President, Leica, North America writes: “...a system such as this could be a dramatic step in cutting manufacturing costs and shortening the time it takes to go from the design to the completion of an aircraft.“ 18th June 2001: Received confirmation from CASA to buy 2 Project 2 systems (5 million pounds each). To be used in A-400 project. 9 m 18 m 16 January 2002: Letter from Bmbardier, Shorts Brothers: “Shorts have an interest in this type of technology and are keen to encourage research in this field. July 2002: Received so far just over 1 mil pounds worth of contributions. March 2002: British Government: “Following detailed consideration of your application for Smart Exceptional Project funding we have concluded that the company’s project meets the Exceptional Project appraisal criteria in terms of innovation, technological advance and strategic importance to the UK.” 26 June 2001: According to Daniel Stewart & Co. 50 m Sela Robotix is going to TECHMARK and after that to NASDAQ  Present Future Past July 2002: According to the attached business plan 4

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Project 1: Drilling System Project 2: Multi A. Sys. Investment: £1,920,000 £665,000 Project 2: Multi A. Sys. £627,500 £627,500 Maximum investment: £1,920,000 Project 1: CASA intend to order 2 systems after a successful demo. Bombardier intend to order 1 system. Project 2: Multi Axis System is almost half-finished. The work goes on till completion in May 2004. Shortly after Project-2 is completed, official invitations will be sent out to all the big Aerospace companies (see slide 15) inviting them all to, once again, gather around Sela Robotix, this time probably at the “Motoman” facility in Manchester UK, where they shall all witness history being made. Based on the facts, especially the clear letters of intent already sent, it is only logical to assume that many of these companies will place massive orders as a result of which Sela Robotix UK Ltd could turn in to Plc, go to NASDAQ and raise money in order to facilitate the multi million orders. This is how the 1.9 million will be spent 5 5 months 8 months

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Deposits: £ 900,000 Investment: £ 665,000 Minimum investment: £665,000 Project-1: CASA intend to order 2 systems after a successful demo. Cost will be approx. 1.5 million and they might pay 40% up front - £600,000. Bombardier intend to order 1 system, 40% of which is £300,000. Total expected £900,000. Shortly after receiving the above orders the rest of the Aerospace companies will rush to place their own orders and pay 40%. Sela Robotix UK will go to TECHMARK in order to provide a very profitable Exit for the investors. Company value could be anything over £50 million (business plan). Initial investment: 665,000 investment will be spent on building the Project-1 Drilling system. Takes 8 months to build, till Dec 2003. 6 13 months 8 months £ 900,000 Project-2: will take 13 months to develop. Will be ready in January 2005.

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All the above Aerospace manufacturing companies will be invited and will attend the demonstration of Project-1 and Project-2. They are all very keen to purchase the systems. EADS CASA, Spain: A400M project is starting in June 2004 and is for production of 192 airplanes during a period of 12 years. They ordered 2 systems of project 2 to be delivered in good time for commencement of airplane production under the contract. Shorts Brothers Plc: Bombardier site in Northern Ireland are very interested to buy one system of Project 1 and are keen on attending a demonstration. 9

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Letter sent from CASA (buyer) to Sela Robotix (seller): “Subject: Sela robotix proposals on automation assembly for A400M FAL fuselage join up Dear Mr Sela, We analysed your proposals on automation positioning and drilling operations for the assembly of the fuselage of A400M, following our meeting held on April, the 24th and the fax ref. 04/01( A400M Final Assembly Line automated process assessment with Sela Robotix proposal)…”. Let’s break down this carefully worded paragraph: “A400M” “on automation positioning and drilling operations for the assembly of the fuselage” “following our meeting held on April, the 24th” “fax ref. 04/01( A400M Final Assembly Line automated process assessment with Sela Robotix proposal)” “We analysed your proposals” This is what CASA need done. See details in slide 2. They need it fast because their A400M project is about to start in 18 months and they will be very busy for 12 years building 192 airplanes. So a revolutionary system like Project 2 would be very helpful for the A400M project and that is why they even confirmed that they are going to buy 2 systems. This is the famous A400M Spanish government project of CASA to build 192 airplanes. They know that SELA Robotix system would be very useful for building the 192 airplanes quickly. Buyer : CASA Nature of business : Airplane manufacturer (Aerospace) Seller : Sela Robotix Nature of business : Manufacturer of robotic systems for the aerospace industry It is not necessary to understand the technicalities behind each business. We are only interested to see the connection between all parties involved i.e. who wants what from who and why? The Deal The rest of the letter is a detailed analysis of the obviously thorough investigations CASA did regarding the offer. They are obviously taking it very seriously. Meeting + proposal for 2 systems sent by Sela Robotix to CASA 10

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First, we thank you for those proposals. Then, about our programme, the goal for us is to find, if possible, an automated or semi- automated process to assemble the different sections of the aircraft with a very quick return on our investments ( around 200 aircrafts) compared to a manual process. This requirement is very different from other Airbus aircraft programmes which take in account a number of aircrafts much higher. This target limits the investment costs or oblige to get a high level of performance in terms of recurring costs on the manufactured aircrafts. On one hand, the technology proposed by Sela Robotix ( combination of a 3D robot and a measurement system) is very new and interesting, on the other hand the risk degree of this advanced technology is quite important because of the integration of several high technical level of hardware and software systems ( Laser tracker, robot and working head; CAM, simulation, 3D measurement, best fit and controller softwares) and will probably need a high level of maintenance. 1- Technical analysis ( drilling operations) : 1-1 The proposal is not complete, it does not take in account : The sealing injectors, the chip vacuum cleaners and fasteners tooling which are necessary . and in this proposal, 4 robots are needed, so we need 4 equipments (working heads). 1-2 The platforms are not taken in account, they are necessary for an operator to access to the outside fuselage in case of non quality problem or break down of a robot. In other words: CASA now use a “manual process” and “if possible” (since nothing like that exists) then they are interested to purchase. In 1990 Airbus started using basic robots. There is undoubtedly going to be a revolution in the industry just as happened in the car industry for example. Robots = redundancies. Therefore CASA must be very diplomatic. So they start by saying that although it is so amazing, it “will probably need a high level of maintenance”. In a demonstration to MecDonall Douglas Israel in 30/06/95 it was shown how the Sela Robotix system will cut costs by 30% in an industry where anything over 10% is a huge saving. That is why they all want the system so badly and that is why CASA have taken serious action by writing a detailed analysis, clearly indicating their intention to buy. 11

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1-3 The process is not clearly explained : - If the 4 robots work together in a hole by hole process, we shall need 4 operators into the fuselage to install the fixations, and in this case, we do not think that one laser tracker could follow 2 robots working together without time loss ( in a cycle of 10 seconds : a laser tracker should measure 3 points minimum for one position of the robot, the software should compare the position to a theoretical or calculated one and give the appropriate correction to the robot if needed, in this case a new measurement of 3 points is needed, and then the working head of the robot could drill a hole) . - Collisions between different robots: very high risks from our point of view, because of the 4 robots working ( 4 critical areas to deal with). Important differences between the position of the robot given by its own measurement system and theoretical position given by the Laser tracker : we can suppose that there is a high risk to drill a wrong hole in the fuselage if for example the laser tracker system fail ! ). 1-4 The expected process in the proposal consider a theoretical positioning of the holes according a general measurement of the 2 sections to assemble, but the reality is much more complex because of the interface tolerances on stringers, skin panels, straps and gauge marking requirements on holes in those parts, we must take in account the real position of the different parts in order to drill the holes within all those tolerances. 2- Technical analysis (positioning operation) : 2-1 The proposal do not take in account a common ( unique) software interface for the worker ( Leica AXYZ, Delmia CAM, simulation and PaR software, balancement software): In order that a worker could be able to drive the system and to avoid manual datas transfers, the integration of all the different softwares ( PaR positioning CNC system, Measurement system, Delmia-Delfoi MCU/SU controller and the balancement software) in one interface is absolutely necessary . And they go on, checking and describing everything in detail… The problem with these large, government supported companies is that they must comply with highest standards. It is against regulations to pay money before they see a live, tangible system, even a prototype is not enough. They want it but cant pay for it until it is developed, because anybody could walk in with an invention asking for development money. Its either everybody or nobody. They want Sela Robotix to get the money to develop the system so that they could come along and buy it. That is why they help SR in so many ways… 12

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2-2 The proposal is not complete, it does not take in account the best fit calculation needed before join up of the 2 parts of fuselage. 2-3 The proposal do not take in account the physical interface needed between the PaR 3 axis positioners and the front part of the fuselage, the physical interface between the centre/rear part of fuselage and the floor. 3- Economical analysis According to the technical analysis ( incomplete proposal),the prices given by Sela Robotix for each solution can't be evaluated. The forecast performances of the systems must be demonstrated according the technical reserves we pointed out.. 4- Conclusion A high industrial risk linked to a very new technology including complex softwares is the main caracteristic of the proposals we assessed. We are not able to do any interpretation concerning the benefit we could have with the Sela robotix technology compared to a traditional manual one for the A400M programme. All these changes have already been done in accordance with this letter and CASA were notified accordingly. So, very diplomatically nobody is saying that this is economical. Of course why should they, they want bargaining power but they do know their very delicate position as Sela Robotix are free to sell to anybody and that is exactly what they intend to do. So, CASA is just an example of a very keen customer for obvious reasons (A400M). NB: From 4 onwards, they emphasize everything right to the end of the letter in bold. Clearly indicating that they have something very diplomatically important to say… So they play the “bad cop” for a bit and then… 13

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So, following this analysis, 2 issues could be possible : 1- Sela Robotix could follow this assessment exercise free of charges and engagement by taking in account the technical points mentionned in a new proposal, in order to perform an economical analysis of the Sela Robotix technology based on a correct technical basis. 2- We close the exercise until the invitation to tender based on our future specification we should write by mid 2002. In both cases, we would like to be informed about the future developments of the Sela Robotix technology (demonstrations and industrial applications) . Best Regards Jean-Marc SORIAUX Sela Robotix chose option number 1. The last 2 lines are diplomacy at its peak. We are very interested but since you made it very clear to everybody that the patent is not for sale then we cannot pay you for development as it is against regulations. In order to develop the system Sela Robotix require 1.9 million pounds spread over a period of 13 months. Once they start developing the system the value of the company will start climbing, a trend that will grow as the development goes on, through a demonstration to delivery to customers. A couple of years down the line the value would be enormous. Sela Robotix already made all the changes according to this letter and CASA were informed accordingly 14

CASA Confirmation: 

CASA Confirmation From: Jean.Soriaux@casa.eads.net To: "dan sela" <seladan@hotmail.com> Subject: [Fwd: Sela Robotix UK Ltd] Date: Mon, 18 Jun 2001 16:42:27 +0100 Dear Mr Sela, I confirm that our need is to have installed in the workshop of the future Seville facility the two systems ( ready to produce) in the first half of the year 2005. So we will order those systems in 2004. Best regards Jean-Marc Soriaux ---------------------- Remitido por Jean Marc Soriaux/MTA/EADSCASA con fecha 18/06/2001 16.40 --------------------------- 15

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