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RE: Background Information

Gentlemen:

We are happy to provide you with a general background information of Jaca & Sierra Testing Laboratories Inc.. The offices were founded in 1968 by Eng. Luis Jaca Méndez and Eng. Carlos R. Sierra. Since the mere begining with few personnel, Jaca & Sierra Testing Laboratories presently leads all other companies in these industries in gross sales and man power. Jaca & Sierra Testing Laboratories is the largest material testing, soil consultants and drilling contractor in Puerto Rico. We are a SBA Certified Small Business Disadvantage Minority own business. A partnership compose of Rubén Torres PE, President, Luis Sierra PE, Carlos Sierra del Llano PE and Carlos Perez,PE. The gross sales of this office in 1999 were 3.4 Millions, excluding Aqua Drilling Inc. with gross sale of 1 million. Our services are to provide drilling , geotechnical investigation, environmental monitoring and material testing to determine the most feasible and economical foundation design solutions for buildings, bridges, embankments, highways, airports, ocean outfalls and housing developments.

This office is eager to provide all described services in the geotechnical engineering, soil and rock drilling and sampling from our base in Puerto Rico. All engineering personnel are licensed by the Commonwealth of Puerto Rico. We have also a business license in the US Virgin Islands. Our Company a small business disadvantage minority own has had various contracts with the Department of the Navy including A & E Contract No. N62470-91-D-6636. Department of the Army Contract No. DAKF1190P8302. Federal Highway Administration Order No. DTFH71-89-P-00179 All and various other Federal Agencies which are listed in our brochure.

The field personnel, technician and engineers are 29 CFR 1910.120 certified. We successfully completed in December 1990, the Juncos Landfill, an EPA Superfund site for monitoring well installation and development. We were contracted by the probable responsible party Beckton and Dickinson Inc. We used Level D PPE for this Superfund site. On a Metcalf & Eddy Co. Martin Marietta joint venture site at Muñiz Air National Guard base we worked with Levels C and D PPE installing monitoring wells and Piezometers.

We have provided services to various companies in Norfolk, Virginia Beach and Newport News, Virginia. Some of these consulting companies are Waller, Todd and Sadler, Newbill and Beale, Stroud, Pence and Associates, Forrest Coile and Associates, Walsh-Ashe and Associates, Robert Kenneth Week Engineers, Miller Stepheson and Associates, Versar, Inc. For companies outside of Virginia refer to enclosed Table I.

Recently, at USNS Roosevelt Roads, Ceiba were contracted by Méndez, Brunner, Badillo & Associates to complete a geotechnical Consulting work and drilling for the following buildings: 302, 304-A, 304-B, 306, 307, 311, 312, 313, 317. Also thru Forrest Coile we were contracted for the geotechnical exploration for Air Cargo (P-300), Chapel (314), Boat House (315), Print Plant (P-303), Communication Center Addition (P-320). Prior to 1990 we have performed over 30 different explorations at the USNS Roosevelt Roads.

We have also worked at various other military installations throughout the island of P.R. like CAPRI and Threat Simulator Radar Installation at Pico del Este, Yunque Rain Forest, Sabana Llana, Punta Salinas, Army Reserve Center, Puerto Nuevo, U.S. Air Coast Guard Station Ramey Base, Punta Borinquen and Fort Buchanan.

We have mobilized to remote islands in the Caribbean as Virgin Gorda, Tortola, BVI for work under contract by the British Government in conjunction with Israel Base Thal Consulting Engineers LTD. We could reach remote areas thru privately own shipping enterprise.

We own healthy stock of PVC 2 and 4 inch riser and screen, Stainless Steel 304 and 316-2 inch nominal diameters screen and riser, manhole, monument type well covers, processed sand 20-30, special bentonite pellets, Portland cement. Please refer to enclosed Table II for a partial list of services.

We have augers with inside diameter from 2.5 inches to 8.25 inches, Wireline NQ and PQ size, core barels, California Modified standard and Stainless steel samplers, bailers, etc. We own Two (2) Ingersold Rand T4, one Gardner Denver 14W, Mobile Drill 61-HDX , 2 Mobile Drill B-53, 2 Mobile Drill B-51, 1 CME 45-B, 2 Acker Ace , Minuteman portable drill rig, Geoprobe Model 5400 and a Smeal T8 Pump Truck. Our large stock position to ship to the Caribbean and South America or other areas, large supplies of drilling and monitoring equipment in a moment notice.

Knowing your company special needs, we are very interested to provide you with our highly motivated personnel with vast experience in the geotechnical and environmental drilling.

Please do not hesitate to contact this office for this or any other issue.

Sincerely yours,

JACA & SIERRA TESTING LABORATORIES

LUIS SIERRA, M.E.C.E.

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