Seawater Desalination Projects Proposed for Southern California include:

                                    West Basin     Long Beach    LADWP          MWDOC        SDCWA

Size (mgd)                   20                    9                      12                    25                    50

Location                      El Segundo       Within Long      Scattergood      Dana Point       Carlsbad

                                    Or Redondo     Beach                                       or San

                                    Beach                                                               Onofre

Timeline                      2008                2009                2009                2008                2006

Capital Cost               $130 million      $62-$92           $70 million        $114-140         $272 million

                                                            million                                       million

Unit                             $904                $711-$1171     $1033              $860-$1007     $909

Cost/AF

Here are some of the headlines in the latest Update of the McIlvaine RO/UF/MF World Markets:

• Monterey County residents concerned over the proposal of desalination plant
• Santa Cruz Desalination plant attracts concerns
• Major Orange County water district is considering a public/private partnership for a desalination project
• Gov’t signs $169m deal to develop Khirbet Al Samra plant – Jordan
• Many new projects coming up in Wusta
• Construction on RAK desalination plant begins/UAE

These Updates are just a small part of this 5,000 page online report.  We forecast the size of the markets in each county.  Here is a sample:

Industry:         Food

Subject:           Ultrafiltration

Country:         Bulgaria

            ($ Millions)

Subject Group              2001   2002   2003   2004   2005   2006   2007

Equipment                      0.18     0.19   0.21    0.22     0.24   0.27    0.28

Membranes                    0.07     0.07   0.08    0.08     0.09   0.10    0.11

One of the strengths of the report is the comprehensive data on each industry.  For example, there is a forecast of power plant construction segmented by coal, gas, and nuclear for each country through 2007.  Forecasts of water treatment in mgd are also provided for each country.  Forecasts for semiconductors, pharmaceuticals, chemicals, and food are also provided.

For more information on RO/UF/MF: World Markets click on:  http://www.mcilvainecompany.com/water.html#NO20 .

Bob McIlvaine

847-784-0012

www.mcilvainecompany.com