EMAIL DETAILS

FYI

Arlene Busch
312-498-9595 (m)
202-333-1880 (w)


Begin forwarded message:

*From:* "James Gordon" <jim@edgewaterfunds.com>
*Date:* July 25, 2012 9:57:47 AM EDT
*To:* "Arlene R. Busch" <abusch@senecaga.com>
*Subject:* *Fwd: deal*

FYI below

James A. Gordon
The Edgewater Funds
900 N. Michigan Avenue
Suite 1800
Chicago, IL 60611
312-649-5666
Jim@edgewaterfunds.com

Begin forwarded message:

*From:* "Alex Loucks" <LoucksA@icmcvi.com>
*Date:* July 25, 2012 8:22:50 AM CDT
*To:* "James Gordon" <jim@edgewaterfunds.com>,"Bill Hostetler" <
HostetlerB@icmcvi.com>
*Subject:* *RE: deal*

Jim:


These machines are supposed to be very cool. I am a little jealous if you
got to visit the plant and see something being ‘printed’. Bill and I both
have an initial interest. Do you have time this afternoon to speak? Also,
I am going to be in Chicago on Monday and would I appreciate the
opportunity to get more information then as well.


Thanks for sending this over. I look forward to hearing from you.


Best regards,


Alex


*Alex Loucks*
Investment Officer - Private Equity and Real Estate
International Capital & Management Company
1600 Kongens Gade
St. Thomas, VI 00802
Ph. 340-715-5834, C. 340-201-9719, F. 340-777-1303 subaddress:5834


*From:* James Gordon [mailto:jim@edgewaterfunds.com]
*Sent:* Tuesday, July 24, 2012 6:21 PM
*To:* Bill Hostetler; Alex Loucks
*Cc:* jim@edgewaterfunds.com
*Subject:* deal


July 24, 2012

Bill Hostetler
Alex Loukes
International Capital & Management Company
1600 Kongens Gade
St. Thomas, Virgin Islands 00802


Dear Bill and Alex,


We are pleased to present you with an investment opportunity in a fast
growing segment of the industrial manufacturing industry. The opportunity
involves a minority investment to recapitalize and consolidate ownership of
two companies with common ownership. The two businesses (herein referred
to as “MTI” or the “Company”) are leaders in the additive manufacturing
industry (also known as 3D printing). The additive manufacturing process
essentially fuses powdered metals by using a high powered laser to build a
product from a 3-dimensional image, whereas a typical machining process
cuts products out of a solid block. Additive manufacturing has been
embraced by the aerospace and medical industries for use in rapid
prototyping and prospectively in high volume production. The Company has
made a broad array of products ranging from airflow aircraft engine test
components to surgical products to medical implants. The Company also has
a secure facility and Secret level clearance supporting the US Government.

MTI, based in Cincinnati, OH, provides its customers both engineering and
design services and high volume production capabilities. MTI had sales of
$21.3 million and EBITDA of $3.9 million in 2011 and is projecting that it
will grow to $71.4 million in sales and $18.9 million in EBITDA in 2015.
We believe the Company represents an attractive investment for the
following reasons.
· Rapidly Growing Industry – The additive metals industry is
estimated to be nearly $1.5 billion and growing to over $5 billion by 2020.
The expected growth will be driven by the aerospace and medical
industries. The additive manufacturing process is superior to traditional
machining in quickly converting complex geometric shapes into useable
products. The process is also particularly important for specialty alloys
that, while they provide excellent weight to strength benefits, are
extremely difficult to machine or form.
· Strong Customer Base – MTI’s customer base includes the leaders in
the aircraft engine, industrial turbine, medical device and consumer
products industries. Their customers include GE Aviation, GE Energy, GE
Global Research, Honeywell, Pratt & Whitney, Rolls-Royce, Siemends, Ethicon
Endo-Surgery, Bechtel Bettis and Proctor & Gamble. The Company has
enormous opportunity to grow within its existing customer base.
· Long Term Production Contracts – Historically the Company has
provided engineering and design services and rapid prototyping
applications. For example, MTI has shortened the prototype process for an
aircraft engine OEM from 9-12 months to 4 months while reducing the cost
10-15%. These prototype projects are leading to long term production
opportunities. The Company is currently pursuing production opportunities
on 17 aircraft engine components that it estimates will have a net present
value of over $500 million over a 20 year production lifespan.

We have had a number of discussions with the management team and visited
their production facility. The business is not running a process to find
investors but has retained a local group in Cincinnati to advise them in
regard to a potential proposal. If you find this of interest we would like
to share more information about the business.

I hope you are having a wonderful summer and I look forward to speaking
with you.

Best,

Jim
Jim Gordon
The Edgewater Funds
900 N. Michigan Avenue
Suite 1800
Chicago, IL 60611
Phone: 312-649-5666
Fax: 312-664-8649
Jim@edgewaterfunds.co