NEWS RELEASE                                   JUNE 2008

Odds Favor Growth in Air Pollution Control Markets

June 9, 2008 – Using their new “Important Event Odds” tool, the McIlvaine Company is forecasting future growth in the air pollution control markets.

Northfield, Illinois (The McIlvaine Company) – A new tool, “Important Event Odds,” has been used to forecast future growth of the power plant air pollution control market.  Favorable odds relative to the price of coal-fired power, government regulation of emissions, and lack of fully-developed alternative fuels point to a positive outlook for the air pollution control industry.

The McIlvaine Company regularly adjusts forecasts for scrubbers, catalytic systems, precipitators, fabric filters, activated carbon, and many other products used in controlling air pollution.  By incorporating the odds of the occurrence for various events, the company is able to better project future markets.

McIlvaine Company president Bob McIlvaine states “Many potentially important events are shaping the world market for air pollution controls.  As time goes on, some developments will expand the market, others will contract it.  By continually weighing the likelihood of various events, we are able to provide timely, ‘event-sensitive’ forecasts.”

For example, if large volumes of LNG were to become available in the U.S. at prices below $6/MMBtu, the air pollution control market would shrink.   According to McIlvaine, however, the odds against this development are currently very low - “about 100 to l” estimates McIlvaine.

Similar odds exist for the likelihood of wind-, solar-, or nuclear power generated electricity to become generally available in the next 15 years.  As a result, these factors carry little weight in current McIlvaine forecasts.

By contrast, McIlvaine cites a number of events that are more likely to occur and generate growth in the air pollution control market.

Factors that would boost sales of scrubbers, for example, are listed below:

According to McIlvaine, the odds that Congress will pass a new set of Clean Air Act Amendments in the next four years are about 10-1.  Should this occur, states will require power plants to install scrubbers to control ambient sulfate particulates.  Another event that will likely boost scrubber sales is a toxic air regulation requiring HCl removal.

If carbon trading or a carbon tax is modest, there will be a big increase in capacity at existing coal plants.  If a carbon tax is high, many inefficient coal plants will be replaced with efficient ones.  Either way, the scrubber market will expand.

If plants were to avoid having to scrub under any other regulatory action, they would still face NSR litigation.

Certain events, such as a regional haze rule and the need to be CO₂ ready, are positive but will impact only a segment of the industry.

Odds have been compiled for many “important events” in the McIlvaine market reports relative to air pollution control.  For more information on these reports visit : www.mcilvainecompany.com.