Tecnofil S.A.

repaid

The Project, which has a total cost of US$18.7 million, consists of expanding and modernizing Tecnofil's copper manufacturing facilities, as well as providing the necessary working capital to expand its sales (the "Project"). A new production line, which will provide additional production capacity, capable of producing copper products in a more efficient manner will be installed. New equipment will also be installed as part of the project in existing production lines to increase productivity and improve efficiency. The increased production capacity and availability of permanent working capital supplied by the Project will permit the company to expand its average monthly sales volume from close to 1,200 MT to some 1,780 MT in order to accommodate increasing market opportunities stemming out of the Company's diversification efforts. The recent take-or-pay supply agreement with General Electric, an increase in orders from existing Tecnofil customers, and purchases from new clients have contributed to the increased demand and resulted in a capacity constraint faced by the Company. As part of the financial plan, the IIC will provide a US$5.0 million long-term loan to help fund the Project.