“Trade with a World of Salvage Experience”

Dan ParsleyPresident, CEO & COO

SalvageSale.com

Houston Marine Insurance Seminar

“Digital Challenges”

SalvageSale.com Mission

Lead the globe in salvage and claims recovery solutions through the

Internet

“DOT COM” Must Haves

Characteristics

Large, Inefficient Market

Domain Expertise

Real Value Proposition

Strong Management Team

Funding

Path to Profitability

SalvageSale.com

$50B U.S. Market, ~6-8K U.S. Salvage Brokers, High Margins

10 Yr. Old Salvage Broker Company

Higher Returns, Faster Disposition, Ease of Use, Leverages Internet Technology

Average Age: 37, 60% Bilingual, 10 Languages Spoken, Industry Experience

Initial Seed Capital and Angel Round

Demonstrated Market Liquidity and Growth Rates

Salvage Is A High Margin Business

0

10

2030

40

50

60

7080

90

100

Gro

ss M

arg

in (

%)

SteelBuilding

MaterialsFood Machinery Other

Weighted Average

42%

Source: Salvage Broker/Dealer Study, CSC Consulting, March 2000

Our Solution Simplifies Salvage

SupplierSupplier BuyersBuyers

Supplier Benefits:•Access to more buyers•Simple internet solution•Faster disposition•Recovers more dollars

Buyer Benefits:•Access to more products•Instant deal notification•Pricing efficiency•Reduced transaction risk

Marine Surveyor Benefits:•Less paperwork•Time recovery•Value to clients•Ease of use

Case Studies

Plasterboard Liner Paper Deal

Manufacturer UK Paper Company

Insurer UK-based Underwriter

Surveyor Houston-based Marine Surveyor

Condition Damaged From Improper LoadingCase BCase A

SalvageSale.com Exclusive

Traditional Offline Nonexclusive

188 reels200 reels

Deal Overview

The Results

100 % Improvement267 %

Improvement

A A A AB B B B

Buyers Firm Bids

Effort Time Recovery

A B

Returns

370 % ImprovementBig

Improvement

$200/short ton

$100/short ton

43

350

3

827%

100%

813%Improvement

Chemical Deal- Central AmericaManufacturer South American

Chemical Company

Insurer UK-based Underwriter

Surveyor Lloyd’s Agent

Condition Seawater Exposure

Highest Bidder WinsNon-competitive, One Offer

Neutral AuctionNegotiate with Consignee

SalvageSale.com Exclusive

Traditional Offline Nonexclusive

Case BCase A

Deal Overview

One Week Was Worth the Wait

Pri

ce

TimeAuction begins

$45 K

$57 K

$80.5 K

$92 K

$98 K

204%Improvement

Non-competitive bid from consignee

1st bidcompetitive

2nd bidcompetitive

3rd bidcompetitive

Auction ends5 days

“Trade with a World of Salvage Experience”