OVERALL QUALITY REVIEW @ MTU

BR396 / BR4000 / BR2000

Accumulated reject 1st semester 2011 29.979 PPM

(was

73.999 PPM in 2010)

Actions ongoing at foundry:

Review core package assembly process for BR4000;

New steel gating system in place since 05th April 2011 for BR4000
recent figures show improvement on quality at MTU;

PPM figures on last 2 months: approx 5.000 PPM

NEW CORE BOX FOR BR4000

New tooling built to blow in separate the most critical cores

that use chromite sand (upper and lower water jacket):
Saving on piece cost;
Potential quality improvement on gas blow;

Tooling received week 37;

Inspection results same as current production tooling;
First samples shipped week 45;
Waiting MTU approval to start using new tooling;

BR2000 DEVELOPMENT

7 prototype casting versions developed since 2007

3 production versions under development:
544-130 (C&I) / 544-113 (GenDrive)

Casting tooling ready by 1st week Dec 2011

Casting samples by February 2012
Machining samples by Apr 2012 (prototype fixtures)
Machining development pending commercial agreement

544-008 (Marine) development in stand-by

BR2000 DEVELOPMENT Machining

40 Machined prototypes (C&I) were sent to MTU on

May/2011:
- Some measurement divergences were found and these heads will

be reworked to the new MTU evaluation;

There is a PO to produce more 200 prototypes (C&I) still this

year;

3 production versions under development:

- 544-130 (C&I) / 544-113 (GenDrive) / 544-008 (Marine)
Machining development pending commercial agreement;