George Y. Karmo, P.E.

With the hard marketing efforts of your Cleveland Operation Manager, Bhagu Patel, P.E., Vice President, and Daniel Atnafu, P.E., Office Manager, the operation is up and running. We now have three (3) full-time staff including Adrian Condrut, a Structural Engineer, Ken Mendelson, P.E., a Senior Electrical Engineer, and Daniel Atnafu, P.E., a Senior Civil Engineer. Our Cleveland staff is currently assisted by the Detroit office staff in the areas of Structural, Mechanical and Electrical Engineering.

Our revenue from current projects under contract totals $1.2 million, and includes the following:

• Notingham Floculation/Sedimentation Reservoir Design Project as subconsultant to CDM. The project is currently in the shop drawings review stage;


• Max Hayes High School Design as a subconsultant to Middough Consulting. This project is currently in the design development phase;


• NASA Laboratory Blanket Agreement with Middough Consulting providing subconsultant work on an as-needed basis. To date, we have four (4) authorized task orders;


• Comprehensive Financial Plan Project as a subconsultant to CH2M Hill providing assistance in the area of rate analysis. The project work started in mid-January, 2005.


• Morgan Filtration Project as a subconsultant to CH2M Hill providing resident engineering services. Our participation is scheduled to start July, 2005; and


• Southerly WWTP Facilities Plan as a subconsultant to Malcolm Pirnie. Our work will start in 2-3 months upon conclusion of contract negotiations with the Northeast Ohio Regional Sewer District (NEORSD). TYJT is currently awaiting immediate decisions on proposals which were submitted in 2004; these include:

1. As-needed general engineering services contract with the City of Cleveland Water Division (CWD): TYJT submitted a proposal as a prime consultant in association with the firms of URS,Middough and others as subconsultants. The contract value is estimated at $3 million; and


2. Cleveland Municipal School District: TYJT is a subconsultant to the teams of Richard Bowen and Middough Consulting.

TYJT’s marketing efforts for the first quarter of 2005 include pursuing proposals as follows:

1. Northeast Ohio Regional Sewer District (NEORSD) General Engineering Services Contract: TYJT will be invited to submit a proposal as a Prime consultant for as-needed engineering services in the amount of $500,000;


2. Easterly WWTP Facilities Plan, valued at $4 million: TYJT is targeting a subconsultant role with the teams of ARCADIS, Montgomery Watson/Harza and Brown Caldwell; and


3. Southerly WWTP Incineration Project valued at $6 million in total engineering fee: TYJT is targeting a non-exclusive subcontultant role with the teams of Malcolm Pirnie and Brown & Caldwell.

TYJT is “committed” to a long term presence in Cleveland. We believe we have an excellent opportunity to bring TYJT’s Detroit acquired experience to Cleveland and steadily grow our operation. Our plan for year 2005 is as follows:

• Resources: Acquire Senior Civil and Mechanical Engineering and CAD resources as soon as possible. We project to be an office of 8-10 full-time staff by year-end. We will also continue to support the Cleveland Office with resources from Detroit on an as-needed basis;


• Marketing/Business Development: We will continue our marketing efforts with a focus on water/wastewater and continued pursuit of infrastructure opportunities; and


• Management Commitment: TYJT’s commitment to be in Cleveland will be translated in “deeds” and not only in “words”.

Paul Tucker Jr.