• SD has been very successful in winning projects the last several years. This is testimony to the value that SD process technologies, catalysts, process engineering and technical assistance services bring to our worldwide clients. As we enter 2008, we are preparing for another challenging and successful year.

• High demand for bio-renewable technology in the world has opened new business opportunities for SD to license its integrated Ethanol to EO/MEG technology. We hope and anticipate that our work in this area will open other business opportunities for SD in this era of high oil prices and increasing concerns about the environment.

• SD’s major accomplishments in 2007 include the award of two Ethanol to EO plants (Jilin Bohai & Yongsan Pharmaceuticals), one EO/EG plant (Liaoning Huajin) and one EO plant (Akzo Nobel) all in China. In addition to these new plant awards SD was awarded several EO/EG plant expansion/revamps. It is also important to mention that 2007 has been an excellent year for the sale of SD’s proprietary equipment (OMS, ERU and Resins).

• SD has begun preparations for the upcoming 2009 EO/EG Licensees Meeting. Location information and more details to be announced by early summer 2008.