CAP Aerospace Inc. The World Standard for Aircraft Floats

1
CAP Aerospace Inc.

• The World Standard for Aircraft Floats Since 1955

2
About CAP

• C.A.P. is short for Canadian Aircraft Products
  Ltd.
• Today, CAP is the name people use to refer to
  the legendary CAP aircraft float line
• CAP Floats include the CAP 2000s, CAP 3000s,
  and CAP 12000s
• CAP Floats are flying every day, all over the
  world
• CAP retains a remarkable 8 share of the Canadian
  float market, despite being out of production for
  20 years!
• Today, CAP is still the number two most widely
  flown aircraft float in Canada

3
History

• Canadian Aircraft Products was founded in 1955 by
  George Grover of Canada
• Over the next 53 years, CAP became synonymous
  with quality, performance and reliability. CAP
  floats are famous for their aerodynamic shape
  resulting in faster speed in the air and superior
  handling in rough water
• For years, CAP floats have been The float all
  other floats are compared to
• Manufacturing rights to the CAP 2000 3000 lines
  were sold in the mid-1980s
• For various business reasons, the floats were not
  put back into production
• The CAP 2000 and 3000 Type Certificates and seven
  STCs were later acquired by Glen Ernst of CAP
  Aerospace
• Our goal is not only to bring CAP floats back
  into production, but to expand the product line
  to fit more aircraft, develop amphibious floats
  and other products based on the proven CAP design

4
A Rare Aerospace Opportunity

• Low price of admission into the US Canadian
  aerospace industry
• Immediate entry into a highly profitable industry
  with limited competition
• The Type Certificates we offer rarely come up for
  sale
• CAP is NOT a startup company!
• CAP is a proven product with a 53-year history
• CAP is THE leader in advanced float design. No
  other float looks or performs like CAP
• There are aircraft flying on CAP floats all over
  the world
• We have more than 300 unsolicited inquiries
  logged, with an estimated 2m USD of orders in
  backlog
• Low tech, low liability high profit business
• Few moving parts, no complicated systems
• Low liability - floats dont cause accidents,
  they save lives
• 67 profit margin!

5
Benefits of CAP ownership

• Springboard for additional aerospace products
• Amphibious floats
• Composite Floats
• Specialty floats for military firefighting
  aircraft
• Possible Government incentives contracts
• Relatively easy expansion of the CAP product line
• Our team is in place, willing to assist you in
• Management
• Engineering New Product Development
• Sales Marketing
• Did we mention it is a high profit business?
• 5-Year Projected Revenue 195 million USD
• 5-Year Projected Net Income 100 million USD

6
Who uses floatplanes?

• Air Ambulance
• Air Freight Industry
• Airlines (especially in island-based countries)
• Fire Control Authorities
• Oil Gas Exploration
• Military government worldwide
• US Coast Guard, US Navy, US Marines
• Recreational Pilots
• Remote areas - every lake becomes an airport
• Scientific Research Expeditions
• Tourism Industry

7
Market

• More than 58,000 aircraft suitable for one of
  seven current CAP STCs
• Approximately 19 of the worldwide piston engine
  fleet
• Since 1994, approximately 33,000 fixed wing
  general aviation aircraft have been produced
• Growth in industry expected to continue as global
  economy expands
• Several aircraft manufacturers have indicated a
  desire to offer CAP floats for their aircraft
• More then 300 unsolicited inquiries logged
• Estimate 2,000,000 USD of orders in backlog
• Strong pent-up demand due to production gap of
  CAP floats parts
• CAP 2000 and 3000 floats are a catalyst for a
  scaled version of larger CAP floats
• CAP 4000s - Cessna 206, Helio Courier, Airvan,
  Sherpa, etc.
• CAP 6000s - DHC-2 Beaver, Pilatus Turbo Porter,
  etc.
• CAP 8000s - DHC-3 Otter, Cessna Caravans, etc.
• CAP 15000s - DHC-6 Twin Otter others
• Convert CAP floats to amphibious models
• CAP floats are inherently designed for amphibious
  operations

8
Assets

• Two Canadian Aircraft Products Type Certificates
• CAP 2000 Floats (CAP Model 67-2000)
• CAP 3000 Floats (CAP Models 3000-CAP3000E)
• Seven Canadian Aircraft Products Supplemental
  Type Certificates
• Cessna 170A/B, Cessna 172A-N, Cessna 175A/B
• Cessna 180A-K, Cessna 185 E/F
• Piper Super Cub PA-18S and Piper Super Cub
  PA-18AS
• PZL-104 Wilga 80
• Production and Installation Drawings
• Assembly fixtures required for construction
• Production tooling
• Form dies necessary to begin immediate production
• Existing inventory estimated at 1,050,000 USD

9
Sales and Marketing Activities - 1 Year Plan

• CAP Sales
• Call more than 300 unsolicited customers that
  have contacted us regarding CAP products
• Develop on-line mail order catalogue to include
  CAP floats, spare parts, STCs and accessories
• Work with aircraft manufacturers to get CAP
  floats STCd on their aircraft
• Immediately start engineering new amphibious and
  straight floats to fit ALL capable aircraft
• Let Everyone Know That CAP is back
• Advertise in industry publications
• Represent CAP at the top aviation events for
  2008, including
• Sun n Fun EAA Fly-In, World Regional Aviation
  Convention, Aero Friedrichshafen, Alaska Aviation
  Conference, Paris International Airshow, Canadian
  Aviation Expo, EAA Airventure, AOPA Expo, NBAA

10
Summary

• Proven product with unlimited growth potential
• Type Certificates offer a springboard for new
  products
• Take advantage of this rare opportunity
• The current fire sale on the US dollar offers a
  low price of admission into the profitable
  US/Canadian aerospace industry
• CAP is the design leader and has limited
  competition
• We believe when you learn more about CAP, you
  will be as excited about bringing CAP back as
  we are!
• Aircraft manufacturers - even governments -
  welcome CAPs return to production
• This is the kind of thing that we as a
  government want to see - Premier Dennis Fentie,
  Government of Yukon, Canada