Air Pollution Control Equipment Services, Emissions

Safer means of air pollution control installed at a major Michigan power plant

SANTA ANA, Calif., March 18, 2003 — Wahlco Inc., a supplier of air pollution control systems, in conjunction with Hamon Research-Cottrell announce the successful start-up of a large scale urea to ammonia (U2A™) conversion system installed on the first phase of a 3,000 megawatt, coal-fired electric power plant in Michigan.

Designed to diminish the dangers of handling ammonia, a hazardous substance used for reducing toxic NOx emissions into the atmosphere, the patented U2A™ system converts urea, a stable compound commonly used in fertilizer, into ammonia as needed, on-site. This system has the capacity to produce 5000 pounds per hour of ammonia. Plans are underway to expand the system and boost production to 10,000 pounds per hour.

“The U2A™ system offers significant safety advantages over handling anhydrous ammonia and substantial cost efficiencies when compared to aqueous ammonia,” states James Peters, Executive Vice President and General Manager of U2A™ Systems. “When this project is completed, it will represent the single largest installation of its type in the world.”

In addition to eliminating the need to transport and store feedstock ammonia, the utility has further simplified its operation by receiving concentrated urea solution available directly from the manufacturer, which allows the project to avoid significant capital expense and concerns about long-term bulk material storage.

Developed by EC&C Technologies, Wahlco shares the exclusive license to supply the U2A™ system worldwide with Hamon Research-Cottrell. Wahlco and Hamon are currently working on 25 urea to ammonia installations at 10 sites in the U.S. and Europe, totaling more than 10,000-megawatt equivalent of generating power.

Founded in 1972, Wahlco designs and manufactures air pollution control systems including flue gas conditioning equipment, anhydrous and aqueous ammonia systems, and U2A™urea to ammonia conversion systems for energy utilities, refineries, and industrial clients. Wahlco, Inc. (formerly Wahlco Environmental Systems) is privately held and was purchased by members of the management team in partnership with industry professionals in January of 2001. Located in Santa Ana, California. Wahlco is not affiliated with Wahlco Engineered Products, Inc. or Wahlco Metroflex.