Xenesys Inc. - Ocean Thermal Energy Conversion -

Opening of OTEC R&D Center and Xenesys Imari Plant.

Acquisition of the Non-governmental Accreditation of Product Certification of Welding Process Controls for Electrical Facilities.(Enzan Works)

Establishment of Xenesys Kuwait, a joint venture.

Memorandum of Understanding with KNPC (Kuwait National Petroleum Company) for introduction of DTEC technology.

Acquisition of ISO 9001 certificate (TOKYO BRANCH).

The FY2005 "Research Projects on Oil and Natural Gas Resources Development Assistance and Rationalization of Energy Use" commissioned by the Japan External Trade Organization (JETRO). (For the feasibility study of water production and electric power generation by a waste heat recovery system of thermal energy conversion technology at Kuwait's oil refinery)

Award given to an OTEC system at the 2005 World Expo in Aichi prefecture as one of 100 prominent environment-friendly technologies contributing to environmental preservation and the promotion of sustainable development.

Recipient for the FY2005 "Regional New Consortium Projects / New Industry Creative- Type Technology R&D Promotion Programs" subsidy from the Ministry of Economy, Trade and Industry. (For the study of Totally Welded Two-Phase Plate Heat Exchanger for Low Temperature Waste Heat Power Generation)
Amount of the subsidy received: Yen 97,500,000

Increase in capital to 1,400.56 million yen (through the allocation of 29,334 new shares to a third party).

Praises received at SIDS 2005 In Mauritius (the United Nations Conference for Small Island Developing States) held in Mauritius, for our exhibit and demonstration of an OTEC and desalination system.

Acquisition of ISO 9001 certificate (Enzan Works).

Establishment of the Xenesys Arabia in Riyadh, Kingdom of Saudi Arabia.

Recipient for the FY2004 "Regional New Consortium Projects / New Industry Creative-Type Technology R&D Promotion Programs" subsidy from the Ministry of Economy, Trade and Industry. (For the study of Totally Welded Two-Phase Plate Heat Exchanger for Low Temperature Waste Heat Power Generation)
Amount of the subsidy received: 　　　　　 Yen 75,000,000

Praises received at "33rd Tripoli International Fair" held in Libya, for our exhibit of an OTEC and desalination system.

Acquisition of the ASME (the American Society of Mechanical Engineers) U-Stamp, plant certificate.

Chiyoda Corporation, Fuji Oil Company, Ltd. and Sumitomo Chemical Co., Ltd. have been commissioned by NEDO to work on the following joint research projects: Strategic Development of Energy Conservation Technologies, Pilot Research on Energy Conservation Technologies, and Development of Low-grade Industrial Heat Conversion Technologies. Chiyoda Corporation has commissioned Xenesys to assist in the technical development of thermal energy conversion using factory waste heat.

Increase in capital to 960.55 million yen (through the allocation of 6,670 new shares to a third party).

Praises received at Water Middle East: International Exhibition and Conference for Water Technology held in Bahrain, for our exhibit of an OTEC and desalination system.

In order to devote our efforts to the energy business, the entire business relating to the manufacture and sale of brewing machinery, etc. was transferred to Satomi Industries, Ltd.

Increase in capital to 860.5 million yen (through the allocation of 2,000 new shares to a third party).

Participation in Forum on Desalination Using Renewable Energy in Saga, Japan as a pre-forum of The 3rd World Water Forum in Kyoto, Japan.

Participation in a pre-forum held in the Republic of Palau prior to the 3rd World Water Forum in Kyoto, Japan.

Contract awarded by the Japan Regional Development Corporation, an affiliated organization of the Ministry of Economy, Trade and Industry for a feasibility study entitled "A Feasibility Study to Consider the Potential Measures and Methods for Utilizing an Industrial Complex Housing a University Research Center in the Core".

Approval obtained from the governor of Hyogo Prefecture for our business plan, "Utilization of Plate Heat Exchanger in Thermal Power Generation System," as one of the ventures in the new fields of technologically advanced small to medium sized businesses that are promoted by the prefecture for the fiscal year 2002.

Recipient for the FY2002 IMS (Intelligent Manufacturing Systems) international joint research grant from the New Energy and Industrial Technology Development Organization (NEDO), an affiliated organization of the Ministry of Economy, Trade and Industry. (For the study of a heat pump system for use with geothermal power)
Amount of the grant received: 　　　　　 Yen 25,000,000

Signing of a joint research agreement with Saga University (concerning the study in the fiscal year 2002 on geothermal power generation).

Signing of a joint research agreement with Saga University (concerning a feasibility study on the creation of a marine industry fit for the 21st century in the Imari Gulf region).

Contract awarded by Saga University to construct an integrated institute for ocean energy, the first of its kind in the world (contract value of approximately 3 billion yen). It will house facilities comprised of the following: #Basic experiment facility for an OTEC power plant utilizing the Uehara Cycle of power generation (30 kW). #Basic experiment facility for a seawater desalination system utilizing the spray flash evaporation method (10 tons per day). #Basic experiment facility for a system for the production and storage of hydrogen. #Basic experiment facility for the extraction of lithium from deep seawater. #Simulation experiment facility to measure the effect of deep ocean water on the environment. The construction of the institute was completed in March 2003.

Praises received at Japan Today, an international trade fair sponsored by the JETRO and held in Abu Dhabi, the United Arab Emirates, for our exhibit and demonstration of an "OTEC and desalination system" model in collaboration with Japan Desert Development Association and Sanyu Consultants Inc.

Completion of Enzan Facility (Enzan City, Yamanashi Prefecture) equipped with fully automated pressing and welding lines for the production of heat plate exchangers which are the key device for the OTEC, thermal energy, and seawater desalination systems.

Increase in capital to 610.5 million yen (through the allocation of 66 new shares to a third party).

Contract awarded by the Ministry of Land, Infrastructure and Transport for a feasibility study on a business promoting the formation of self-sustaining economic zones by linking wide areas (within Imari City).

Change of the company name to Xenesys Inc.

Signing of an agreement memorandum on technical collaboration in the area of the OTEC power generation system among Saga University (the OTEC energy laboratory under the Faculty of Science and Engineering), the government of Palau (Department of Energy Program, the Ministry of Resources and Development), and Satomi Industries, Ltd.

Increase in capital to 561 million yen (through a two-for-one split of par value common shares).

Signing of a joint research agreement with Hitachi Zosen Co., Ltd. on a marine-discharged energy conversion system.

Increase in capital to 450 million yen (through the allocation of 49 new shares to a third party).

Opening of Tokyo Branch Office.

Signing of a joint research agreement with Saga University (concerning the study on geothermal power generation for the fiscal year 2000).

Increase in capital to 410 million yen (through the allocation of 320 new shares to a third party).

Signing of an agreement with Saga University concerning the exclusive right to government owned patents: 6 patents relating to an OTEC power generation system and a thermal power generator (for use in Japan, U.S.A., and EPC).

Increase in capital to 273 million yen (through the allocation of 520 new shares to a third party).

Increase in capital to 240.5 million yen (through the allocation of 360 new shares to a third party).

Participation in the International Conference on Ocean Thermal Energy Conversion, the Japan Association of Deep Ocean Water Applications (an organization for study on the utilization of deep seawater), and the 1999 International Symposium on Ocean Technology and Energy in Imari City.

Increase in capital to 218 million yen (through the allocation of 400 new shares to a third party).

The signing of a joint research agreement with Saga University (concerning the study on geothermal power generation for the fiscal year 1999).

Increase in capital to 198 million yen.

Opening of the U-TEC Saga Research Office in Saga City.

Increase in capital to 180 million yen.

Contract awarded to sell a plate heat exchanger (3,720m² in titanium) to the National Institute of Ocean Technology (NIOT) in India for its 1000-kW OTEC experimental plant.

Increase in capital to 150 million yen.

Signing of a joint research agreement with Saga University (concerning the study on geothermal power generation for the fiscal year 1998).

Signing of a joint research agreement with Saga University (concerning a study on OTEC and geothermal power generation for the fiscal year 1997).

Dispatch of a full-time researcher of the company to the Faculty of Science and Engineering at Saga University (accepted in to the seminars of Prof. Uehara).

Establishment of the U-TEC Energy Department within the company.

Increase in capital to 99 million yen.

Increase in capital to 90 million yen.

Enrollment in the Principles of Growth, a private school taught by Prof. Haruo Uehara, a dean of the Faculty of Science and Engineering at Saga University. A jolting shock from the theory of Prof. Uehara made Mr. Satomi see the light that he had never seen before and gave him a completely different perspective on the world around him.

Capital participation in the formation of Sun Masamune Pty., Ltd., in Penrith, Australia, a locally incorporated entity. The company completed the first brewing plant in Australia to produce and sell Japanese sake and launched the sale of the "Go-Shu" brand sake jointly with Konishi Shuzou and Kitajima Shuzou, two Japanese sake brewers.

Increase in capital to 70 million yen.

The day of the Great Hanshin Awaji Earthquake. Severely damaged but no human losses suffered by the company (Jan. 17).

Opening of the Kobe Branch Office.

Increase in capital to 50 million yen.

Increase in capital to 45 million yen.

Purchase of a paddy field (12,242 m²) in Azuchi-machi, Shiga Prefecture, for study of the rice seeds used for sake. Contract signed with rice growers for a total area of approximately 2.0 million m2.

Increase in capital to 30 million yen.

Increase in capital to 20 million yen.

Establishment of Satomi Industries, Ltd. by Mr. Kiminao Satomi with a capital of 12 million yen. The company commenced the development, manufacture, and sale of an innovative sake brewing system, Hime-Ii Tsukuri developed in collaboration with the Okayama Prefectural Technology Center and the Aichi Prefectural Food Industrial Technology Center. The system integrated the traditional sake brewing method with advanced factory automation (FA) technology.