To: SSP who wrote (67954 ) 10/21/2000 10:37:47 AM From: Vision21 Respond to of 150070 ARCX AFFILIATED RESOURCES CORPORATION proposed acquisition of Modular Processing Technologies, Inc. Here is a little more company info on Modular Processing Technologies, Inc. I didn't get a chance to call the company yesterday to ask how the acquisition is going...I will try to call them first thing Monday morning. MPT (Modular Processing Technologies, Inc.) has contracted to provide an existing refurbished 6,000 barrel per day refinery to Podolsk, Russia for RNGS (Rosneftegazstroy JSC) with the MPT equipment being financed for three years for RNGS through Allfirst Bank with financial guarantee by Eximbank. In the process of arranging this sale, MPT was able to arrange for RNGS a $200.0 million line of credit for energy equipment with each funding to be under $15.0 million with Eximbank guarantees. These financial guarantees are available to MPT for any equipment sold to a credit worthy buyer such as RNGS. The Eximbank Trade Finance loan guarantee availability enhances significantly the market for smaller modular units, and particularly the remote field unit designs. Energy Needs With the spread of economic development throughout the world, and with the recent resurgence of world economic markets in China, The Far East, Latin America, Russia and the former Russian Republics, the demand for energy is growing correspondingly. This growth represents the MPT market for oil and gas modular and remote field units. With this turnaround, the focus on U.S. and world financial institutions to support and underwrite the turnaround of Russia and these other countries. Applications which are particularly suited for the mini-refinery concept include: · Remote oil fields and towns along crude transport pipelines, to supply gasoline, kerosine, diesel, fuel oil and asphalt to small towns in such areas as Siberia. · Energy-based requirements such as electric turbine fuel supply needs in the interior of Saudi Arabia. · Infrastucture improvements in such countries as Vietnam, where there is occasionally a tremendous need for a single product such as asphalt for permanent transportation routes. · Enlightened developing countries where modern refineries are necessary for producing unleaded gasoline, such as in Malaysia where remote areas are hampered from efforts to convert to totally unleaded gasoline economy. The market for gas processing is derived from economic development growth similar to modular oil refineries, except that gas processing can produce liquid gas for the local fuel market or very commonly it becomes fuel for electrical co-generation. MPT expects to follow its inroads in all of its oil processing markets with gas processing, particularly focused on fuel for electrical co-generation. Financing and Guarantees The classification of oil refineries as infrastructure projects permits the World Bank, through its MIGA insurance to insure these projects against political risk and breech of contract including financial risk. With MIGA insurance, future financing of these types of projects should be able to fund all of the plants designed and fabricated by MPT. I am really impressed with MPT, and this acquisition could really be big for ARCX (my opinion only). And I am going to continue to do more "DD". I have bought 3,000 shares at this time, and will probably buy more. David