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†BOLD WORDS ARE REFERENCED IN GLOSSARY ON PAGES 32-33

Machine Retooling and Noise Reduction Technology

Snapshot April 17, 2006

New Century Companies, Inc. (“New Century” or “the Company”) is engaged in acquiring, remanufacturing, and selling new and pre-owned Computer Numerically Controlled (“CNC”)† machine tools to manufacturing customers. The Company is also engaged in assembling sound-wall modules made from Quilite®—a revolutionary, lightweight, graffiti-resistant concrete alternative used not only in freeway sound barriers, but also in other sound-absorbing structures and non-weight bearing applications where privacy or screening is necessary. These applications can include walls for guarded-gate residential communities, barriers at sports stadiums, and privacy screens on highway medians. The Company’s machine tools services are provided to a variety of customers, where the machine remanufacturing typically consists of replacing all components, realigning the machine, adding updated CNC capability, and electrical and mechanical enhancements. New Century’s machines are used to manufacture round parts for jet-engine components; airplane landing gear parts; power generation equipment; oil and gas production components; construction materials; casks that store nuclear materials; and bearings for windmills, turrets, guns, or torpedo tubes in submarines and ship vessels, and countless other parts. Once completed within two to four months, a remanufactured machine becomes a “like new,” state-of-the-art machine, which often contains more iron ore and superior standards of strength than a new machine, at a fraction of the price (generally 40% to 60% less than new ones). New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co. (GE-NYSE), General Dynamics Corp. (GD-NYSE), Siemens AG (SI-NYSE), and Gardner Denver Inc. (GDI-NYSE). The Company also manufactures its own original machine tool equipment, marketed under the “Century Turn” line. New Century manufactures its machine tools and assembles Quilite® modules at its facilities in Santa Fe Springs, California.

Recent Financial Data

Key Points

Quilite® modules, with numerous worldwide applications, are unique since they are much lighter than concrete, graffiti-resistant, versatile (offered in 16x16 inch panels), up to 10 times faster to install in wall form than concrete, and have superior sound blocking and visual privacy capability. Higher prices and increased shortages of concrete (due to, among other factors, the housing boom and recent hurricanes such as Katrina), makes Quilite® a cost effective concrete alternative in certain uses.

New Century completed a private placement in March 2006. Part of these proceeds is earmarked for the proposed acquisition of Quilite® International, Inc. The private placement with an accredited institutional investor provides the Company with gross proceeds of $2 million at closing, with an additional $1.5 million placed into an escrow account for the proposed Quilite® International acquisition.

New Century’s machine tools business assists companies with refitting and updating their machines every 10-15 years with new technology. If it is steel, circular, and/or round, the Company’s machines can be utilized.

China’s ongoing infrastructure rebuild requires massive amounts of machinery. Many of New Century’s competitors are geographically closer to China and have focused their efforts on that market, creating a significant opportunity for New Century in the U.S.

Ticker (Exchange) NCNC.OB (OTC.BB) Recent Price (04/13/06) $1.15 52-Week Range $0.13-1.25 Shares Outstanding 9.8 million Market Cap. $11.3 million Average 3-month volume 73,663 Insider +5% Owners 20% Institutional Owners NA EPS (year ended 12/31/05) $0.05 Employees 36

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New Century Companies, Inc.

9835 Santa Fe Springs Road Santa Fe Springs, CA 90670

Phone: (562) 906-8455 Fax: (562) 906-8459

www.newcenturyinc.com

New Century Companies, Inc. April 13, 2006

Executive Informational Overview

Table of Contents

Snapshot .................................................................................................................................................1

Recent Financial Data...................................................................................................................................1

Key Points .....................................................................................................................................................1

Executive Overview.......................................................................................................................................3

Growth Strategy ............................................................................................................................................5

Management and Board of Directors ............................................................................................................6

Core Story .....................................................................................................................................................7

Quilite® .....................................................................................................................................................7

Machine Tool Industry............................................................................................................................13

Competition .................................................................................................................................................21

Potential Milestones ....................................................................................................................................23

Key Points to Consider................................................................................................................................24

Historical Financial Results .........................................................................................................................25

Risks............................................................................................................................................................28

Recent Events.............................................................................................................................................30

Glossary of Lesser-Known Terms...............................................................................................................32


Executive Overview New Century Companies, Inc. (“New Century” or “the Company”) is engaged in acquiring, remanufacturing, and selling pre-owned Computer Numerically Controlled (“CNC”) machine tools to manufacturing customers. The Company is also engaged in assembling sound-wall modules made from Quilite®—a revolutionary, lightweight, graffiti-resistant concrete alternative used not only in freeway sound barriers but also in other sound-absorbing structures and non-weight bearing applications, where privacy or screening is necessary. The Company also manufactures its own original machine tool equipment, marketed under the “Century Turn” line. New Century manufactures its machine tools and assembles Quilite® sound-wall modules at its facilities in Santa Fe Springs, California. Key areas of focus for the Company are summarized in Table 1 and described briefly below. Greater details are provided within the Core Story section of this Executive Informational Overview® (EIO®) on pages 7-20. Quilite® New Century has an ongoing relationship with Quilite® International, Inc. to manufacture and ship proprietary privacy/sound-wall modules throughout the U.S. and Canada. Quilite® is a material that is much lighter than standard concrete, graffiti-resistant, available in 16x16 inch blocks, and up to 10 times faster to install in wall form, with superior sound blocking capability. This material has been used in a number of noise-blocking applications, including airports, community pools, road barriers, residential surroundings, electrical transformer shelters, and others. Quilite® can also be used in non-weight bearing applications where privacy or screening is necessary. These include guarded-gate residential communities, barriers at sports stadiums, and privacy screens on highway medians to prevent driver distraction from oncoming traffic and rubbernecking due to accidents. The market for Quilite® could be over $1 billion in the U.S. alone, based on an increase in the price of concrete and alternatives sought for sound/privacy barriers in such markets as residential construction of gated communities (driven in large part by the Baby Boomer population); new federal legislation called The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), as described on page 20; and urban sprawl, which has created an increased demand for greater privacy and sound reduction. Remanufactured Machines The Company’s machine tools services are provided to a variety of customers, where the machine remanufacturing typically consists of replacing all components (castings), realigning the machine, adding updated CNC capability, and electrical and mechanical enhancements. Machines which create circular products are all within the scope of New Century’s machines’ capabilities. New Century’s machines (Horizontal Turning Lathes, Vertical Turning Lathes, Vertical Boring Mills, and Horizontal Boring Mills etc.) are used to manufacture jet-engine components; airplane landing gear parts; power generation equipment; oil and gas production components; construction materials; casks that store nuclear materials; and bearings for windmills, turrets, guns, or torpedo tubes in submarines and ship vessels, and countless other parts. The machines take raw steel, which in its natural shape needs to be refined into a specific round part, and by utilizing a computer-directed tool, shapes the steel into very precise measurements. Once completed within two to four months, a remanufactured machine becomes a “like new,” state-of-the-art machine, which often contains more iron ore and superior standards of strength than a new machine, at a fraction of the price (generally 40% to 60% less than new ones). New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co., General Dynamics Corp., Siemens AG, and Gardner Denver Inc.

Table 1New Century Companies, Inc.

KEY AREAS OF FOCUS

- Quilite®

- Remanufactured Machines

- New Machines (Century Turn)

Source: New Century Companies, Inc.


New Machines (Century Turn) New Century manufactures original equipment under its “Century Turn” brand name. Century Turn products include, but are not limited to lathes and vertical boring mills. These machines are used to machine products such as landing gear and machine valve bodies. Corporate History On May 25, 2001, the Company entered into a merger with New Century Remanufacturing, Inc. Pursuant to the merger, all of the outstanding shares of New Century Remanufacturing, Inc., a California corporation, were exchanged for shares of the Company on a 1/833.33 basis. After the reverse merger, the Company changed its name to New Century Companies, Inc. Headquarters, Employees, and Manufacturing/Operations The Company is located in Santa Fe Springs, California, and currently employs 36 individuals full time. New Century’s manufacturing facilities (44,000 square feet) consist of two 20,000 square foot bays and one executive office space. Figure 1 illustrates the exterior and interior views of the Company’s facilities.

Bay 1 Bay 2

Figure 1New Century Companies, Inc.

NEW CENTURY FACILITIES, EXTERIOR AND INTERIOR VIEWS


EXTERIOR

INTERIOR


Growth Strategy New Century’s goal is to become the leading provider of high precision Computer Numerically Controlled (“CNC”) turning centers through organic growth as well as through strategic acquisitions. In addition to building its core machine tools manufacturing and remanufacturing business, the Company also intends to put its production capacity to work towards a new line of business—the production of products made from a revolutionary sound-absorbing concrete alterative called Quilite®. As it relates to growing its machine tools business, Phase I of this strategy was to move into a larger facility in order to expand output capacity; Phase II is to market its products and services primarily through direct sales and independent distributors throughout the U.S., Canada, and Mexico; and Phase III is to implement a roll up strategy to acquire and vertically integrate with precision manufacturing companies to position New Century as a potential acquisition target. These Phases are more fully described below. Phase I: Increase Capacity and Output New Century executed Phase I of its plan in 2002 by moving into a larger facility where the Company can now produce over 100 machines per year, tripling its previous capacity. This was a significant event for New Century because the capacity constraints at its prior facility made it difficult to attract multiple machine orders from larger machining and manufacturing companies. With such capacity constraints remedied, management now has the ability to capture multiple machine orders from larger companies. With the ability to handle numerous orders for larger (over 60 inch) machines, New Century may benefit from increased sales volume while maintaining readily available machines in inventory, which carry higher margins and greater competitive advantages. Phase II: Future Marketing New Century markets its products and services primarily through direct sales and independent distributors throughout the U.S., Canada, and Mexico. The Company also intends to advertise its products and services in the industrial trade publications (such as Architectural Digest), industry trade shows, and on the Internet. As it relates specifically to Quilite®, New Century plans to market this product through the aforementioned venues, as well as connect with companies such as Home Depot Inc. (HD-NYSE) and Lowes Companies (LOW-NYSE), as well as homebuilders such as KB Homes (KBH-NYSE) to further penetrate the residential market. New Century’s focus is also to increase the sales of its proprietary “new” horizontal boring mills and remanufactured vertical boring mills. The Company’s “new” vertical boring mills are designed around its proprietary tooling changer that allows the machinist to utilize a wider range of lighter weight tooling heads, increasing the efficiency, precision, and dependability of the machine and ultimately creating a superior and timely finished product. Phase III: Vertical Integration and Strategic Acquisitions As a natural extension of the Company’s precision machine tool business, New Century plans to capitalize on numerous opportunities in the fragmented machining industry by implementing a (vertical integration) roll-up strategy, where the Company could merge with and/or acquire high precision large metal ring manufacturing companies. This strategy is intended to attract the attention of the leading manufacturing companies by ramping up revenue and income to significant levels. In addition to its organic growth strategies, New Century also plans to make tactical and accretive acquisitions. Management has stated that it has identified candidates to pursue in the future.


Management and Board of Directors Management and Board of Directors New Century’s management has widespread experience in the machine building industry. Table 2 summarizes key management followed by biographies.

David Duquette, Chairman of the Board, President, and Director Mr. David Duquette has served as the chairman of the Board, president, and director of New Century since May 2001. Mr. Duquette has been in the CNC machine tool manufacturing and remanufacturing business since 1967. From 1962-1965, he studied electrical engineering at the University of Wisconsin. Mr. Duquette founded New Century Remanufacturing in 1996. Prior to that year, he managed Orange Coast Rebuilding for approximately eight years. Mr. Duquette was president of U.S. Machine Tools from 1969-1985. Josef Czikmantori, Secretary and Director Mr. Josef Czikmantori has served as secretary and director of New Century since May 2001. Mr. Czikmantori completed three years of technical college in Romania and then worked for U.S. Machine Tools, which manufactured metal cutting machinery. In 1986, Mr. Czikmantori defected from Romania and traveled to Los Angeles, where he joined Mr. Duquette at Orange Coast Machine Tools. He is co-founder of New Century Remanufacturing. Steve Werkheiser, Sr., Chief Financial Officer Mr. Werkheiser is a financial executive with 25 years of senior executive experience in profit and loss management, financial planning, strategic planning, merger and acquisition (M&A), business valuations, start-ups, and turnarounds. The financial management positions he has held over the years include 23 years with Northrop Grumman Corp. (NOC-NYSE), as a senior consultant. During those years, he helped found a division as the manager of financial planning, served as the chief financial officer (CFO) for the start up of a composite manufacturing subsidiary, and reviewed most major investments by Northrop in new programs, assets, and acquisitions. He also served as a trader underwriter in municipals and agencies for Blyth Eastmen Dillon and R. H. Moulton. He has served as CFO for Italbiz.com, Inc. and New Century Companies. He is currently providing consulting support to several start-up and turn-around companies. He has an MBA in finance, UCLA Anderson School of Management and a BA in economics, University of California at Los Angeles (UCLA). He currently is on the Board of the Anderson School of Management Alumni Los Angeles.

David Duquette Chairman of the Board, President, and DirectorJosef Czikmantori Secretary and DirectorSteve Werkheiser, Sr. Chief Financial Officer

Table 2


MANAGEMENTNew Century Companies, Inc.


Core Story New Century Companies, Inc. (“New Century” or “the Company”) is engaged in acquiring, remanufacturing, and selling pre-owned Computer Numerically Controlled (“CNC”) machine tools to manufacturing customers. The Company is also engaged in assembling sound-wall modules made from Quilite®—a revolutionary lightweight, graffiti-resistant concrete alternative used not only in freeway sound barriers, but also in other sound-absorbing structures and other non-weight bearing applications where privacy or screening is necessary. Pages 7-12 extensively describe Quilite®; pages 13-19 extensively detail the Company’s machine tools business. QUILITE® New Century has an ongoing relationship with Quilite® International, Inc., where New Century manufactures and ships this proprietary revolutionary lightweight, graffiti-resistant concrete alternative throughout the U.S. and Canada. Quilite® is much lighter than concrete, graffiti-resistant, available in versatile 16x16 inch blocks (as illustrated in Figure 2), and up to 10 times faster to install in wall form than concrete, with superior sound blocking capability. Quilite® is being used in a number of noise-blocking and privacy applications, as described below. Applications Sound Barrier Quilite® has been installed as a sound barrier in venues such as freeways, recreational facilities (including community pools and skateboard parks), airports, and residences. It has additionally been used on the top of big buildings, such as high rises, where Quilite® can be used to surround condensers and transformers with the intent on minimizing their sound effects. Privacy Screen Quilite® can be used as a privacy screen on freeway medians to prevent driver distraction from oncoming traffic and rubbernecking due to accidents. Other privacy applications can include walls for guarded-gate residential communities, barriers at sports stadiums, and walls to divide large stores, such as Target Corp. (TGT-NYSE) from its surroundings. Table 3 depicts some of the specific uses that have been put in place to date. Middle East. Quilite® may have applications in other markets, such as for construction in the Middle

East. This could be a unique opportunity due to the unprecedented growth within these countries and the expense of cement in the region. Contrary to what one would believe, while concrete is made out of sand (which the Middle East clearly has no shortage of), the Middle East lacks the type of sand necessary to produce concrete. Due to it’s almost “powder like” texture, it can not be used to make concrete. Therefore, the Middle East must import sand in order to create cement—driving the price of concrete block up significantly. In fact, the price of concrete has increased well over 200% over the

Source: Quilite ® International, Inc.

Figure 2

Quilite® International, Inc.SAMPLES OF QUILITE®


- Skateboard parks- Airports- Road barriers- Transit sites- Entertainment venues- Residential surroundings- Electrical transformer shelters

Table 3

Quilite® International, Inc.SPECIFIC USES OF QUILITE®

- Municipal pools


past few years. Alternatively, since Quilite® block walls do not use cement, they become a more attractive alternative being not only cheaper, but also easier to install and less time consuming to construct. Additionally, the product’s hard coat finish makes it an ideal product for high barrier walls in the Middle East (as well as other parts of the world), where blowing sand causes safety issues and auto damage. It is noteworthy that the main component of Quilite® is plastic—an oil derivative. Oil is very inexpensive in the Middle East, which could be an important benefit to this product as the company seeks to license it within the Middle Eastern region.

Benefits

Table 4 summarizes the unique benefits of Quilite®, followed by explanations of each of these advantages. Sound Proofing One of the key benefits of Quilite® is its unique ability to reduce the amount of unwanted noise passing through the barrier. Due to its patented shape, Quilite® can reflect sound waves in numerous directions—dispersing and reducing the normal noise from the surrounding environment, such as highway or airport noise. Sound interacts with its environment in complex ways that are affected by nearly every aspect of the physical environment. The propagation of a sound wave in the air, for instance, is influenced by all atmospheric conditions, as well as by the processes of reflection, absorption, and transmission at every surface with which it comes into contact.

Figure 3 demonstrates the different ways a sound wave reacts when interacting with a normal, flat surface. Depending on the type and shape of surface, sound can be (a) transmitted, or passed through the surface with minimal interruption; (b) absorbed, where the sound waves “dies” within the material it hits; (c) reflected, where the sound wave bounces off the surface in the exact angle to which it approaches (this is what causes echoes); or (d) diffused, or transmitted into many different directions, scattering the sound such as to minimize the noise.

Normally, when a sound wave meets an obstacle, some of the sound is reflected back and some passes into the obstacle material. Of the sound that passes into the obstacle, some is absorbed by the material and some is transmitted through the material. Reflection and absorption are dependent on the wavelength of the sound. The percentage of the sound transmitted through an obstacle depends on how much sound is reflected and how much is absorbed. If the surface that the sound wave hits is relatively smooth, more sound will be reflected than if the surface is rough. For example, more sound may be reflected from a smooth wall made of mud than a pile of dirt. Since the rough or porous surface of a dirt pile allows for many internal reflections, this results in more absorption and less reflection. When sound reflects off a smooth flat surface, an echo or reproduction of the sound can be heard. Quilite®’s unique shape and non-porous nature diffuse or reflect (as shown in C or D,

http://www.nonoise.org/quietnet/qc/booklet.htm.

SOUND/SURFACE INTERACTIONFigure 3

transmission absorption reflection diffusion

- Relocatable- Aesthetically pleasing

- Cuts noise up to 85%


- Durable- Low maintenance costs

- Rejects graffiti

- Quick and inexpensive to install- Lightweight

BENEFITS OF QUILITE®Quilite® International, Inc.

Table 4


Figure 3, page 8) sound at the surface in so many directions that only a fraction of what would be heard from the reception of a normal sound wave can be heard, reducing unwanted noise considerably. Anti-Graffiti Quilite® is made of a hard, plastic, non-porous, polycarbonate material, similar to what is used in car headlights. As such, it has an additional advantage over concrete walls of being graffiti-resistant. Quilite® was installed in a transit station above the Harbor Freeway in Los Angeles. Prior to the installation, the concrete walls in the transit station were continually covered with graffiti—a $2 million annual maintenance expense by the city to repaint and/or remove the graffiti. Following the installation of Quilite®, the graffiti stopped. It is important to note that while paint does initially adhere to the surface, a simple pressure hose and warm water quickly removes the paint. Soon after “graffiti-gangs” in Los Angeles realized that this new material was not conducive to their “art”, they stopped painting, reducing maintenance costs dramatically in that area. Lightweight Quilite® is lightweight, requiring less foundation than concrete block, and can be used in places that can not support concrete block. For example, Quilite® is expected to be installed on a Washington State 405 freeway overpass. An overpass cannot support the weight of concrete block. Therefore, Quilite® was an effective alternative to reduce sound, protect against oncoming traffic lights, and divide the highway. Easy Installation Because Quilite® is installed as a panel, its installation takes just minutes. The time it takes to install Quilite® is estimated to be up to 10 times faster (depending on the application) than a concrete block wall, which requires many man hours and intensive labor to actually lay the block, wait for it to set, and

Figure 4

Quilite® International, Inc.QUILITE® PANEL ASSEMBLY


MODULAR DESIGN ENSURES EASY ASSEMBLY ASSEMBLY BEGINS WITH AN EMPTY FRAME

QUILITE® BLOCKS SNAP INTO THE FRAME COMPLETED PANELS ARE STACKED FOR SHIPPING


continue. Additionally, due to the light weight of Quilite® (described above), less foundation is necessary to support the material (also requiring fewer man hours to install a structure). The assembly process starts with crafting an empty, stainless steel frame, similar to multiple picture frames tied together in box format. Then, the 16x16 inch square plastic Quilite® modules snap into the frame. The frames can be any length specified, so long as they remain in 16 inch increments. After these frames are snapped together, they are stacked to be loaded onto trucks or rail and shipped to the installation location. Figure 4 (page 9) demonstrates the assembly process of Quilite®. Installation Process After the Quilite® frames reach their destination, they are easily installed. First, the construction crew sets up poles in which to install the stainless steel frames. These poles can be galvanized steel or a fiber material. The poles are stabilized into a foundation, and then the Quilite® panel is hoisted between the support posts and locked into place. Because Quilite® is installed as a panel, it can be assembled in minutes. Figure 5 illustrates the steps of the installation process.

Sample Installations San Luis Obispo Airport (for American Eagle Airlines) Quilite® was used to create a noise shelter at the San Luis Obispo airport for American Eagle airlines (a subsidiary of American Airlines Corp. [AMR-NYSE]). The purpose of the shelter was to reduce the noise that disturbed nearby residents from an area used to test engines at high power (specifically SAAB A-340 Turbo Prop transports). The enclosure was built as a “U” shaped structure—approximately 88 feet wide, approximately 64 feet deep, and a total height of 20 feet for the walls where the base of each wall has a four foot high vertical concrete block foundation, which is topped by a 16 foot high Quilite® section that extends to the height of 20 feet. The normal size of Quilite® panels used in the wall is 4 feet x 8 feet. The total area of Quilite® used for this project was approximately 3,100 square feet. Installation labor, after post emplacement, was three days to install the panels, with an individual panel requiring approximately five minutes to install.

The completed Quilite® noise barrier is installed.

Figure 5

Quilite® International, Inc.QUILITE® PANEL INSTALLATION


The Quilite® panel is hoisted into place between the support posts.

The Quilite® panel is attached to the lifting device, a forklift in this case.

The crew prepares a Quilite® panel for installation.

The locking bars are inserted between the support posts and the Quilite® panel.


Acoustic measurements indicate that the average wall sound transmission loss between 63 Hz and 8000 Hz is approximately 20 dBA (decibels). Also, at a location 200 feet in front of the open side of the enclosure, measurements indicate that the reflected sound pressure level average, between 500 Hz and 8000 Hz, was 11 dBA lower than direct noise projected from the enclosure. A graphic of this shelter is provided in Figure 6; a depiction of the measured noise reduction is provided in Figure 7.

Albany Airport Albany County Airport Authority engaged Quilite® to produce a noise abatement structure to be considered for installation for use by turboprop commuter aircraft (and perhaps larger aircraft) that are required to undergo nightly engine maintenance checks for next-day flights. A graphic of this structure is provided in Figure 8. The structure, composed of plastic Quilite® blocks cast in nine 4 foot x 12 foot panels, was tested by the Authority for its noise abatement capabilities. Tests have been conducted by independent acoustical engineers to determine the product’s effectiveness and reliability. The tests were run by Albany County, New York on an Aircraft Engine Run-up Test Shelter and showed that a Quilite® wall shelter could reduce noise at a distance of 1,500 feet from the shelter by 23 dBA (75% audible reduction), and at 2 miles from the shelter by 19 dBA (73% audible reduction). These results are depicted in Figure 9.

Source: Quilite ® International, Inc. Source: Quilite ® International, Inc.

(SAN LUIS OBISPO)

Quilite® International, Inc.

Figure 6

AIRCRAFT RUN-UP SHELTER

Figure 7

Quilite® International, Inc.SAN LUIS OBISPO TEST RESULTS:

MEASURED NOISE RESPONSE VERSUS DISTANCE

Source: Quilite ® International, Inc. Source: Quilite ® International, Inc.

Figure 8 Figure 9

ABATEMENT PROJECT RUN-UP NOISE REDUCTION BY QUILITE®

Quilite® International, Inc. Quilite® International, Inc.ALBANY AIRPORT ALBANY AIRPORT TURBO ENGINE


Additional Sample Installations Figure 10 provides a summary of some of the recent sample installations, including the airport (as described on page 11), as well as Coors Amphitheater, Santa Monica Community College Municipal Pool, a residential barrier in California, as well as an electrical power transformer shelter (also in California).

from spilling into the surrounding residential area.

Quilite® barriers include factory-made panels ofpolycarbonate blocks held in noise-trapping bezels andmounted in a structural steel frame. The illustrated shelterheight is 8 feet. The audible noise reduction is 60%. Withgreater wall height, audible noise reduction can exceed 75%.


Quilite® International, Inc.

residents wanted a sound barrier between them and the adjacent parking lot.

RESIDENTIAL BARRIER (BRENTWOOD, CALIFORNIA)

reduce noise disturbing near-by residential areas.

SAMPLE INSTALLATIONS OF QUILITE® TECHNOLOGY

Figure 10

SANTA MONICA COMMUNITY COLLEGE (MUNI. POOL)

Quilite® was installed in the city of Brentwood when

keep the noise from the sporting and entertainment events This shelter was built for American Eagle Airlines to

QUILITE® ELECTRIC POWER TRANSFORMER SHELTER (CULVER CITY, CALIFORNIA)

SAN LUIS OBISPO AIRPORT

Quilite® is used in the construction of the surrounding wall to

(NOTE: This shelter is referenced in Figure 6, page 11)

COORS AMPITHEATER (CHULA VISTA, CALIFORNIA)


MACHINE TOOL INDUSTRY New Century manufactures both new and refurbished machines that are used across a variety of industries. These machines are sold to companies who produce various “round” products and parts in different but extremely precise measurements, depending on the industry. These products can be anything from large jet engines, casks that store nuclear materials, bearings for windmills, turrets, guns, or torpedo tubes in submarines and ship vessels, and more. The machines take raw steel, which in its natural shape needs to be refined into a specific round part, and by utilizing a computer-directed tool, shapes the steel into very precise measurements. Many measurements must be so precise that when removing the metal, it must be round within 1/10,000 of an inch (approximately the equivalent of splitting an average hair 30 times). The machines must be able to repeatedly furnish these precise measurements for its products. For example, a jet engine must be precise to 1/10,000 of an inch due to the speed at which it operates. The engine, when in use, is going over 10,000 revolutions per minute (rpms). If the engine itself were not perfectly round, it would vibrate and could detach from the aircraft. New Century services companies such as General Electric, Rolls Royce, Pratt & Whitney (and all of these companies’ respective sub-tier support contractors), who are manufacturers of the jet engines. These companies specify the dimensions and New Century employs its large machines to create the parts. To get an idea of the scope of these machines, Figure 11 shows a 12 foot machine. New Century has larger machines, which span approximately 25 feet in diameter, and are used primarily for the housings that go around nuclear reactors on submarines or aircraft carriers. CNC Machines New Century’s machines are also unique in that they are Computer Numerically Controlled (CNC) machines. CNC machines use commands from an on-board computer to control the movement of cutting tools and rotation speeds of the part being produced. The computer controls allow operators to program repeated operations to produce specific parts while not personally attending to the machine. Further, a CNC machine minimizes the amount of human error and maximizes the speed of operation, giving a CNC machine the ability to produce the same amount of work as several manually controlled machines, as well as reduce the labor costs by requiring fewer operators to perform the same tasks. Since the introduction of CNC turning machines, continual advances in computer control technology have allowed for easier programming and additional machine capabilities. New Century creates and distributes CNC machines to various market sectors. One of New Century’s unique advantages is that it buys used machine tools (which could be as much as 50 years old), strips them down to bare cast iron, maintains the actual frame, and then adds the latest technology and up-to-date components to construct top-quality machines. These machines have the advantage of being pure iron, which is heavier and more stable than the newer machines. Once a machine is sanded and stripped down, New Century adds the newest technology and can turn it around to be sold in two to four months versus the nine months to a year that it would take to create a new machine from scratch. The price savings for the companies purchasing these refurbished machines can be anywhere from 40-60% lower than the cost of a new machine.


VERTICAL TURRET LATHE (12 FOOT MACHINE)



New Century’s Machine Tools New Century can rebuild Boring Mills, Vertical Turret Lathes (VTLs), and Lathes to Original Equipment Manufacturer (OEM) standards, and update or re-engineer to meet the production requirements of the modern shop. The Company’s original equipment business (“Century Turn”) is focused on large, horizontal and CNC turning lathes. These machines can be compared to a pottery wheel, in that as a wheel goes around, a piece of clay can be molded into something such a pot or vase. In the case of New Century’s machine tools, the same principle is applied. Steel as the raw material (rather than clay) is directed by a computer into a specific shape. Rather than using a person’s hands to conduct this shaping process, this is done by the machine’s tools, which mold the steel into a desired round shape. This process is so precise, that when removing the steel, and it is round within 1/10,000 of an inch. This is equivalent to splitting a piece of hair 30 times. Such precision is necessary because, for example, when a jet engine is going 10,000 revolutions per minute (rpms), it must be perfectly round as any imperfection would cause it to vibrate and eventually fall out of the sky. Machines from 1940s, 1950s, and 1960s have large concentrations of iron ore and are so well constructed that they do not die. These old machines are available in the thousands from machine graveyards as giant hunks of iron. Being scrap for others, New Century takes this scrap, which contains precision parts, sands it to the foundation and replaces all components (castings), realigns the machine, adds updated CNC capability, and makes the necessary electrical and mechanical enhancements. The resulting product is a refurbished alternative to new machines with higher iron concentrations than

machines built new today, that can be turned around in two to four months (versus nine months to a year to construct a new machine) at a more economical price (40%-60% less expensive). Additionally, the recycling of old material is not only environmentally friendly, conserving resources, but also cost efficient to customers who purchase these machines, as it is not necessary to extract new materials from the earth to in order to make these machines. In its 2005 Capital Spending Survey results, the Gardner Group reported that $5.3 billion (39.2% of the $14.7 billion that is projected to be spent on machine tools) is expected to be spent on metal cutting machines in 2005. Furthermore, $1.7 billion was expected to be spent on used or rebuilt equipment. Of the $5.7 billion allocated to metal cutting machines, New Century’s machines fall into the categories outlined in Table 5 and described below.

Lathes A lathe is a machine tool for holding and turning metal, wood, plastic, or other material against a cutting tool to form a cylindrical product or part. A lathe also drills, bores, polishes, grinds, makes threads, and performs other operations. Its principal parts are the headstock (attached to the bed or base of a machine), which holds one end of the material in a rotating spur; the tailstock, which holds the other end, moves along the bed, and can be clamped in position at any point; the cutting tool; and the power feed, comprising the drive and its parts. A lathe may or may not have a stand (or legs), which sits on the floor and elevates the lathe bed to a working height. Some lathes are small and sit directly on a workbench or table, and do not have a stand. All lathes have a “bed”, which is (almost always) a horizontal beam. At one end of the bed (almost always on the left, as the operator faces the lathe) is a “headstock”. The headstock contains high-precision spinning bearings. Rotating within the bearings is a horizontal axle, with an axis parallel to the bed, called the “spindle”. Spindles are often hollow, and have exterior threads and/or an interior Morse taper on the “inboard” (i.e., facing to the right/towards the bed) by which accessories that hold the workpiece may be mounted to the spindle. Spindles may also have exterior threads and/or an interior taper at their “outboard” (i.e., facing

Table 5

Milling/boring—horizontalMilling—verticalTurning, horizontal—manualTurning, horizontal—CNC, 10 inch chuck or belowTurning, horizontal—CNC, greater than 10 inch chuckTurning, horizontal—automatic (single and multi spindle)Turning, verticalTransfer machines and other special purposeSource: New Century Companies, Inc.

MACHINE FOCUS WITHIN VARIOUS MARKET SECTORS


away from the bed) end, and/or may have a handwheel or other accessory mechanism on their outboard end. Spindles are powered, and impart motion to the workpiece. “Century Turn” Horizontal CNC Turning Lathe For the past four years, New Century has designed and developed a large horizontal CNC turning lathe—”Century Turn Lathe”—with productivity features new to the metal working industry. These machines (illustrated in Figure 12) are used to efficiently produce high precision metal rings up to 72 inches in diameter with a maximum turning weight of 5,000 lbs. High precision is achieved by utilizing quality components, which are assembled using a laser alignment process measured to 1/1,000,000 of an inch. Efficiency results from the state-of-the-art CNC controls (described on page 13) and proprietary design. These machines are designed to produce medium volume high precision parts such as aircraft landing gear and smaller diameter jet engine rings. Refurbished Vertical Turning Lathes New Century refurbishes vertical turning lathes, which are stripped down and rebuilt using the latest components. These machines are capable of turning cylindrical parts using CNC automation to maximize productivity and cost 40% to 60% less than a comparable new machine. Figure 13 illustrates New Century’s refurbished turning lathes.

Boring Mills A boring mill is a machine tool used to increase the size of a hole previously made in a workpiece, usually with the purpose of obtaining a required degree of finish and accuracy in the final hole. In a horizontal boring mill, the workpiece is held stationary on a vertical table whose position can be adjusted. A spindle attached to a vertically adjustable head holds the cutting tool, which is fed horizontally into the work. In a vertical boring mill, the workpiece is made to revolve on a horizontal circular table as the tool is fed in. Table 6 (page 16) outlines the industries and applications of New Century’s boring mills.



60-INCH "CENTURY TURN" HORIZONTAL LATHE



REMANUFACTURED VERTICAL TURNING LATHES


“Century Turn” Vertical Boring Mill

A vertical boring mill permits the customer to produce larger and heavier parts with more precision versus a traditional horizontal turning machine, because the spindle and ram are aligned on a vertical plane. Vertical boring mills are used to efficiently produce high precision metal rings up to 20 feet or more in diameter with a maximum turning weight of 100,000 lbs. New Century’s boring mills are capable of machining a true circle, up to 14 feet in diameter, with the precision of 1/10,000 of an inch. Figure 14 is a sample of New Century’s “Century Turn” vertical boring mill. Refurbished Boring Mills New Century’s refurbished vertical boring mills are built upon the highest quality, 30 to 40 year old, heavy cast frames originally manufacturing by leading names such

as Bullard, Gray, and King. These frames are then equipped with state-of-the-art components providing the latest technology and operating efficiencies. These machines carry two-year warranties versus an industry standard one-year warranty and cost 40% to 60% less than a comparable new machine. Figure 15 illustrates refurbished boring mills remanufactured by New Century.


"CENTURY TURN" VERTICAL BORING MILL




HORIZONTAL BORING MILLS

Industry ApplicationAerospace Commercial and military jet enginesDefense Airport security and tank partsEnergy Pipelines, couplers, and generator turbinesMedical MRI, CAT, & PET imaging machinesShipbuilding Large propellers, pumps, and valvesTransportation Truck and train wheelsHeavy Machinery Large circular parts and pulleysMining Rock crushers, pulleys, and wheelsOther Semiconductor automation platforms


Table 6

INDUSTRIES UTILIZING NEW CENTURY'S VERTICAL AND HORIZONTAL BORING MILLSNew Century Companies, Inc.


Regardless of how many vertical boring mills New Century makes, every 15 years the machines need to be replaced or updated due to the changes and developments in technology or the need for bearings or particular parts to be replaced. New Century is currently one of the few manufacturers in the U.S. updating these machines. New Century believes that the market is currently going through a cycle where companies may have to replace or update their machines. Potential Machine Tools Markets New Century’s machines service a wide variety of other industries including, but not limited to: aviation/jet engines, oil and gas, mining, military, transportation, wind energy, and nuclear energy, among others. A sample of some of the industries New Century services are illustrated in Figure 16 on page 19, and detailed below. Aviation/Jet Engines In the past year, both Airbus S.A.S. and Boeing Co. (BA-NYSE) closed agreements for over 1,000 airplanes each. Currently, due to those orders in the industry, there is a backlog of over 2,000 airplanes. From these agreements and the prior backlog of orders as well, both companies are expected to have approximately 30% greater production this year than last year. Each airplane has two or four engines (depending on the size) when it is ordered. When an airplane is manufactured, companies often order a spare set of engines for the plane due to the fact that engines often need to be swapped out and the airlines cannot afford to have the airplane grounded while waiting for a new engine. This translates into thousands of jet engines that must be manufactured—comprised of various large round parts that need to be spun from machines such as those New Century provides. With the new airplanes being produced, such as the Airbus 380 and the 787 Dream Liner, jet engines are increasing in size. Machines have never previously been constructed to make parts large enough to support the jet engines of that magnitude. Therefore, companies now need to order these massive machines to service these new planes and new engines. New Century has the technology and capability to produce machines of size to support that industry. The jet engine business is primarily made up of companies such as General Electric, Rolls Royce, Pratt & Whitney (and all of these companies’ respective sub-tier support contractors), as well as the government, who is ordering engines for the new military planes such as the F-22. As this industry grows, the tools to create these parts are likely to be in high demand. Another market is rockets, which are approximately 20-25 feet in diameter. Parts that go in to making the rocket engine have to be turned and made with precision. Oil and Gas Hurricanes Katrina and Rita damaged a number of natural gas processing facilities on the Gulf Coast. As of March 2006, fewer than half of the 3,050 platforms that were in the paths of Hurricanes Katrina and Rita had been fully evaluated for damage, according Minerals Management Service (a Federal agency, part of the Department of the Interior, that manages the nation’s natural gas, oil, and other mineral resources.) In January 2006, the Minerals Management Service reported that 115 platforms were destroyed in the storms and 52 platforms were damaged. Each of these platforms, as they are rebuilt, is likely to need parts that are created on machines such as those New Century produces. These platforms have drills, boring holes, piping materials, among many other round parts as part of its infrastructure. Therefore, as the industry looks to rebuild, many manufacturers may have a demand for New Century’s machines. Mining The U.S. is now producing coal at record levels. In the mining industry, Caterpillar Inc. (CAT-NYSE) produces enormous trucks to haul the loads of dirt, coal, ore, etc. These trucks have gigantic transmissions and humungous tires, all of which have very large round parts, which need to be spun on machines such as those New Century manufactures. Further, in the mining of copper, coal, and potassium (for example), massive pumps are utilized to pump out rocks and dirt and pump water into the area. One example is Kennecott's copper mine in Utah, which is large enough to see from space. These


gigantic trucks that are used to cart the copper (as illustrated in Figure 16, page 19) have round parts in the transmission, the tires, on the steeling wheel, etc. Military The military’s new F-22 planes and new super planes have engines that are bigger than prior models. Given these unprecedented size demands, there is likely to be a need for machines to service these military planes. In addition, military equipment currently being utilized around the world during various operations will need replacement as the equipment ages and wears out. Examples of equipment that could be replaced are the turrets and gun tubes on tanks, Humvees, ships, and torpedo tubes in submarines and various ship vessels, etc. Transportation New Century has also become involved in the transportation industry on the locomotive side. The locomotive industry has changed quite a bit in the U.S., where the U.S. at one time had as many as eight to ten companies manufacturing train wheels; however China was able to manufacture the wheels more competitively, therefore the U.S. industry plummeted. Now, with China rebuilding its infrastructure, it cannot service the U.S. for train wheels because it needs them for itself. Thus, the U.S. has once again started to manufacture flat cars and railroad wheels. The Company has recently sold machines to the National Steel Car Limited, a company which utilizes the machines to make flatcars and railroad wheels, and has a two-year backlog in orders. General Electric (and its sub-tier companies) is also using New Century’s machines to manufacture locomotives, which are in very high demand due to the lack of producers in the U.S. and the inability for China to supply this demand. Wind Energy Industry Alternative energy is being pursued by many companies across the country. One of these technologies is wind energy, being pursued by companies who are establishing windmills across the country. Many of these windmills are manufactured by General Electric or Vestas Wind Systems A/S (VWSYF.PK), and contain bearings that are approximately 10 feet in diameter, each bearing a “wing” of the windmill. These round bearings have been supplied by companies such Kaydon Bearing. The bearing market is becoming larger and larger as this alternative form of energy is being pursued, and the scope of the parts on the windmills is increasing as well. Currently, three blades on a windmill can take up an entire football field. The bearing that supports these “wings” or “blades” must be spun on a machine, such as those New Century produces, in order to be large enough to support the movement of these blades. These bearings must also have the absolute precision that is reflected in the jet engine industry; otherwise the friction created during use causes inefficiency and a large energy loss, as well as increases the number of times the bearing would have to be replaced, (therefore being less economical). The wind power industry is not only practical, but being supported in many directions. States such as California, New York, Texas, and others have mandated that a certain percentage of their power come from “green energy”. Therefore, as the alternative wind power industry grows and more windmills are put up around the country, more bearings and parts supporting these windmills, which are all created by machines such as those the Company produces, could be in demand. Nuclear Power The U.S. has designated sites, such as Yucca Mountain in Nevada, to store the nuclear waste coming out of the power plants. These sites contain casks which house the nuclear rods. There is a large market in creating these nuclear storage casks. The casks are generally layered, similar to storing a soup can inside of a large tomato can. The outer cask is at least five inches thick and the inner casks approximately three inches thick. New Century makes the machines that make these casks. Each cask requires a few “passes” or cuts, and takes at least 13 hours to make. Then, each cask requires a triple-layer “cap” on each end, sealing the waste and the interior containers. The caps also take a longer time to create, due to the hardness of the material and the duration for which the casks and caps are meant to last (25,000 years).


AVIATION/JET ENGINE TRANSPORTATION

Source: www.airforce-technology.com/projects/kc767/images/767tanker_4.jpg.

Source: www.trainsimdownloads.com/photos/TSPhotos0002.htm.

OIL AND GAS ENERGY WIND ENERGY

Source: www.sciencedaily.com/encyclopedia/oil_platform. Source: www.scigallery.org/gallery/windenergy/palmwind002.

MINING NUCLEAR STORAGE

Source: http://prometheus.med.utah.edu/~bwjones/C1276349108/E266581637/Media/Caterpillar%20mining%20truck.jpg.

Source: www.mmmfiles.com/archive_images/drycask.jpg.

MILITARY MILITARY

Source: http://home.pon.net/hunnicutt/images/F22.jpg Source: http://www.generaldynamics.com.


SAMPLE INDUSTRIES THAT COULD UTILIZE NEW CENTURY'S MACHINES


Legislation On August 10, 2005, President George W. Bush signed into law the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU). With guaranteed funding for highways, highway safety, and public transportation totaling $244.1 billion, SAFETEA-LU represents the largest surface transportation investment in U.S. history. The two bills that brought surface transportation into the 21st century—the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and the Transportation Equity Act for the 21st Century (TEA-21)—shaped the highway program to meet the nation’s changing transportation needs. SAFETEA-LU builds on this foundation, supplying the funds and refining the programmatic framework for investments needed to maintain and grow the transportation infrastructure. SAFETEA-LU attempts to address many of the challenges facing the U.S. transportation system today, such as improving safety, reducing traffic congestion, improving efficiency in freight movement, increasing intermodal connectivity, and protecting the environment, as well as laying the groundwork for addressing future challenges. SAFETEA-LU promotes more efficient and effective federal surface transportation programs by focusing on transportation issues of national significance, while giving state and local transportation decision makers more flexibility for solving transportation problems in their communities. A large portion of SAFETEA-LU is to be distributed toward highway construction, with the rest earmarked for uses such as rail corridors and mass transit. New Century has benefited from this legislation and is likely to continue to directly benefit from such spending by selling machines to companies who manufacture portable rock crushers for highways. These rock crushers are able to crush rock onsite for highway construction, rather than hauling it in from another location. China and Market Implications In the period of the 1950s to the 1970s (following World War II), the U.S. had to build infrastructure such as water lines, roads, railroads, etc. Today, this infrastructure is essentially in place. China, however, is currently building/rebuilding its infrastructure due to the growth of their economy and the wearing of its existing infrastructure. Because of this, the country requires massive amounts of machinery to make its locomotives, water lines, roads, airplanes, etc. Since China’s infrastructure requires much more machine tools at this time, they are acquiring a large number from companies that previously competed with New Century in the U.S. market. Since these companies are now focusing their efforts in China, New Century believes there is a significant growth opportunity in the U.S. According to the National Bureau of Statistics (NBS), the Chinese government, in order to accelerate economic growth in the period after 1989, initiated a campaign to boost primary industries and reinforce China’s infrastructure. From 1989 to 2001, the Chinese government invested 6.3 trillion Yuan (about US$761 billion) into 1,553 infrastructure projects, covering sectors including farming, forestation, animal husbandry, fisheries, energy, raw materials, transportation, postal and telecom services, and other public services. During the recent years, China’s agricultural and water conservation sectors have seen marked improvement, resulting in higher output of grains, cotton, and edible oil. By the end of 2001, national electrical capacity was 1.48 trillion kilowatt hours, 900 billion kilowatt hours higher than in 1989. Further, the exploitation capacities of coal, petroleum, and natural gas in China had also increased significantly, and China now has a modern, comprehensive transportation network which reaches in all directions by rail, road, highways, marine, and airlines. China now boasts over 70,000 kilometers of railway, 1.7 million kilometers of roads, and 28,000 kilometers of oil and gas pipeline.


Competition New Century believes that it is one of the few companies in the U.S. to manufacture vertical turning machines for the machine tool industry. Therefore, most of its competition comes from companies located in Japan or Europe. Figure 17 depicts some of the companies New Century believes could be considered competitors to itself followed by brief descriptions of each of these companies.

Mazak Mazak Corporation is the North American manufacturing, sales, and support arm of the international machine tool builder, Yamazaki Mazak Corporation (Oguchi, Japan). The Company produces machine tools and systems for the precision machining of metal parts, including CNC turning centers, horizontal and vertical machining centers, multi-tasking machining centers, turnkey cells, and software solutions to help customers achieve lean, efficient manufacturing operations. Olympia Olympia is a subsidiary of Phillips Corporation, providing its machines to companies such as: General Electric, Pratt & Whitney, Halliburton Energy Services, Caterpillar, General Motors (GM-NYSE), Sikorsky Aircraft Corporation, Goodyear Tire & Rubber Co. (GT-NYSE), Cooper Cameron Corp. (CAM-NYSE), AlliedSignal Aerospace, McSwain Manufacturing, Rockwell Automation Inc. (ROK-NYSE), Aviation Product Support, Siemens AG (SI-NYSE), Westinghouse, and many small and middle size companies worldwide. Its machines combine heavy metal removal capability with high accuracy. As a result, they are ideal for both heavy roughing and fine finishing applications. Having a distribution network worldwide, Olympia provides installation, start-up, on-site training, on-going technical support, and twenty-four-hour service, available from Toronto or through its distributors worldwide. OM Matsue OM Matsue is a Japanese company that manufactures machines under the O.M. name. Toshiba Machine The Machine Tool Division of the Shibaura Engineering Works Co. was incorporated as an independent company in 1938, named the Shibaura Machine Tools Co., Ltd., the forerunner of the Toshiba Machine Co., Ltd., which supplies machinery and electronic controls to automotive, aerospace, heavy equipment, construction, plastics, transportation, semiconductor, and communication markets worldwide. Producing everything from start to finish, from the castings to the control systems, Toshiba Machine supplies machines to such industries as the aerospace, heavy-electrical equipment, automotive, nuclear-power, electronics, and other industries where high precision is a prerequisite.

COMPETITIONNew Century Companies, Inc.

Figure 17



TOS TOS Èelákovice a.s. in the Czech Republic, is a manufacturer of machine tools. Summit Summit machines are designed in America and built in Romania. For over 40 years, Summit has been serving the metal working industry by providing quality machine tools and performance solutions to customers worldwide. Summit’s products offer features with proven technology and workmanship. Its wide selection of models include tool room lathes, engine lathes, CNC lathes, conventional and CNC vertical mills, radial drills, upright drills, horizontal and vertical boring mills, and hydraulic shears, etc.


Potential Milestones New Century completed a private placement in March 2006 for the proposed acquisition of Quilite®

International, Inc. The private placement, with an accredited institutional investor, provides the Company with gross proceeds of $2 million at closing, with an additional $1.5 million placed into an escrow account for the proposed acquisition of Quilite® International, Inc.

New Century manufacturers special computer-controlled machinery for custom controlled

applications. The Company plans to expand this market, specifically by building vertical turning centers for inventory, which is intended to allow it to improve delivery times to its customers.

If the acquisition of Quilite® International, Inc. is completed: New Century intends to connect with companies such as Home Depot and Lowes to further penetrate

the residential market for Quilite®. The Company also plans to market its Quilite® products through industry journals such as

Architectural Digest, as well as continue marketing at industry trade shows. The Company is looking at purchasing another die to increase production, which would enable it to fill

anticipated orders. Each new die can produce 60,000 square feet of Quilite® a month, selling at approximately $30 a square foot.


Key Points to Consider

New Century Companies, Inc. is a U.S.-based maker of machine tools, primarily vertical boring mills and large lathes such as vertical turning centers. The Company also assembles sound-wall modules made from Quilite®, a lightweight, graffiti-resistant alternative to concrete.

Revenues for the fourth quarter ending December 31, 2005 were $1.8 million, up 119% from $878,000 in the fourth quarter of 2004. For all of 2005, revenues were $6.0 million, up 31% from $4.6 million in 2004. Net income available to common shareholders for the fourth quarter of 2005 was $194,760 or $0.02 per fully diluted share, compared to a net loss of ($560,000), or ($0.08) per fully diluted share, a year earlier. For all of 2005, net income available to common shareholders totaled $512,000, or $0.05 per fully diluted share, up from a net loss of ($1.8 million), or ($0.25) per fully diluted share, in 2004. In December 2005, $216,375 principal and interest on two notes payable was settled by issuance of the Company’s shares of Common Stock.

Quilite®

New Century completed a private placement in March 2006. Part of these proceeds is earmarked for the proposed acquisition of Quilite® International, Inc., the inventor of Quilite®. The private placement, with an accredited institutional investor, provides the Company with gross proceeds of $2 million at closing, with an additional $1.5 million placed into an escrow account for the proposed acquisition of Quilite® International.

Quilite® modules, with numerous worldwide applications, are unique as they are much lighter than concrete, graffiti-resistant, versatile (offered in 16x16 inch panels), up to 10 times faster to install in wall form than concrete, and have superior sound blocking and visual privacy capability.

Higher prices and increased shortages of concrete (due to, among other factors, the housing boom and recent hurricanes such as Katrina), makes Quilite® a cost effective concrete alternative in many uses. In particular, after its proposed acquisition, New Century plans to market this product through companies such as Home Depot and Lowes Companies, as well as residential homebuilders such as KB Homes to further penetrate the residential market.

A recent project for Quilite® was a roadway sound wall in Las Vegas, which accounted for approximately $600,000 in revenue. Projects pending for the Company using Quilite® are planned for California, Washington, Canada (Calgary and British Columbia), and Europe.

The Middle East region provides a unique opportunity for the use of Quilite® due to the exponential increase in the cost of cement block and the ease of replacing Quilite® if it is damaged by the elements such as sand storms.

Machine Tools

New Century’s machine tools services are utilized by a number of industries, including, but not limited to: jet-engine components; airplane landing gear parts; power generation equipment; oil and gas production components; mining (coal, copper, and other precious metals); construction materials; casks that store nuclear materials; bearings for windmills, turrets, guns, or torpedo tubes in submarines and ship vessels, and countless other round products and parts.

New Century may provide its clients with savings of 40-60% per machine due to the fact it refurbishes old machines, updates them with the newest technology and makes them viable, and therefore saves on the cost of iron with the benefit of turning the machine around for use within two to four months versus nine months to a year to produce a new machine.

New Century’s competition is located mainly in Japan and Europe. The Company is one of the few distributors of machine tools of this size in the U.S.

China’s ongoing infrastructure rebuild requires massive amounts of machinery. Many of New Century’s competitors are geographically closer to China and have focused their efforts on that market, creating a significant opportunity for New Century in the U.S.

The recycling of old material is not only environmentally friendly, conserving resources, but also cost efficient to customers who purchase these machines, as it is not necessary to extract new materials from the earth to in order to make these machines.


Historical Financial Results Tables 7, 8, and 9 provide a summary of key historical financial statements, including its Statements of Operations, Balance Sheet, and Statements of Cash Flows.

2005 2004CONTRACT REVENUES 6,038,459$ 4,605,813$

COST OF SALES 4,323,489 5,062,799

GROSS PROFIT (LOSS) 1,714,970 (456,986)

OPERATING EXPENSESConsulting and other compensation 579,921 319,700Salaries and related 218,249 245,688Selling, general and administrative 350,787 764,055TOTAL OPERATING EXPENSES 1,148,957 1,329,443

OPERATING INCOME (LOSS) 566,013 (1,786,429)

OTHER INCOME (EXPENSE)Gain on forgiveness of accounts and notes payable 318,973 544,318 Interest income 19,765 1,020 Interest expense (235,592) (181,468)

TOTAL OTHER INCOME (EXPENSE) 103,146 363,870

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 669,159 (1,422,559)

PROVISION FOR INCOME TAXES 800 800

NET INCOME (LOSS) 668,359$ (1,423,359)$

NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS 512,059$ (1,791,594)$

Basic net income (loss) available to common stockholders per common share 0.06$ (0.25)$

Diluted net income (loss) available to common stockholders per common share 0.05$ (0.25)$

Basic weighted average common shares outstanding 9,186,987 7,038,209

Diluted weighted average common shares outstanding 9,836,987 7,038,209


NEW CENTURY COMPANIES, INC. AND SUBSIDIARYCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2005 and 2004

Table 7


Current AssetsContracts receivable 287,569$ Inventories, net 928,947 Costs and estimated earnings in excess of billings on uncompleted contracts 417,755 Prepaid expenses and other current assets 1,560

Total current assets 1,635,831

Property and Equipment, net 411,651

2,047,482$

Current LiabilitiesBank overdraft 27,649$ Accounts payable and accrued expenses 1,649,080 Dividends payable 565,875 Billings in excess of costs and estimated earnings on uncompleted contracts 501,384 Notes payable 974,816

Total current liabilities 3,718,804 Notes Payable, net of current portion 36,000

Commitments and Contingencies

Stockholders' DeficitCumulative, convertible, Series B preferred stock, $1 par value,15,000,000 shares authorized, no shares issued and outstanding —Cumulative, convertible, Series C preferred stock, $1 par value,75,000 shares authorized, 28,980 shares issued and outstanding(liquidation preference of $1,187,000) 28,980 Cumulative, convertible, Series D preferred stock, $25 par value,75,000 shares authorized, 11,640 shares issued and outstanding(liquidation preference of $394,000) 291,000 Common stock, $0.10 par value, 50,000,000 shares authorized; 10,697,266 shares issued and outstanding 1,069,727 Subscriptions receivable (462,500) Notes receivable from stockholders (505,639) Deferred consulting fees (254,717) Additional paid-in capital 5,085,274 Accumulated deficit (6,959,447)

Total stockholders' deficit (1,707,322)

2,047,482$ Source: New Century Companies, Inc.

ASSETS

LIABILITIES AND STOCKHOLDERS' DEFICIT

Table 8NEW CENTURY COMPANIES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETDecember 31, 2005


2005 2004Cash flows from operating activities:

Net income (loss) 668,359$ (1,423,359)$ Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation and amortization of property and equipment 194,300 276,302 Gain on settlement of legal dispute (275,000) —Gain on forgiveness of accounts payable (102,597) (544,318) Gain on forgiveness of notes payable (216,375) —Amortization of debt discount 47,500 —Amortization of deferred consulting fees 272,616 111,480 Bad debt expense (credit) (5,334) 39,000 Inventory reserve — 186,352 Estimated fair market value of common stock issued for

consulting services — 155,000 Estimated fair market value of common stock issued for

partial legal settlement 20,000 —Interest income on notes receivable from stockholders (19,715) (19,765) Estimated fair market value of common stock issued for

penalty on failure to register convertible preferred stock 90,000 —Changes in operating assets and liabilities:

Contracts receivable (554,368) 108,584 Inventories 51,295 (9,651) Costs and estimated earnings in excess of billings on uncompleted contracts (165,923) 68,700 Prepaid expenses and other current assets — 24,131 Accounts payable and accrued expenses 169,887 406,298 Billings in excess of costs and estimated earnings on uncompleted contracts (259,002) 192,772

Net cash used in operating activities (84,357) (428,474)

Cash flows from investing activities:Purchases of property and equipment — (1,396)

Net cash used in investing activities — (1,396)

Cash flows from financing activities:Bank overdraft 27,649 (124,558) Proceeds of issuance of notes payable — 80,816 Proceeds from issuance of preferred stock — 521,000 Principal repayments on obligations under capital lease (72,379) (74,270)

Net cash (used in) provided by financing activities (44,730) 402,988

Net decrease in cash (129,087) (26,882)

Cash at beginning of period 129,087 155,969

Cash at end of period — 129,087$

Supplemental disclosure of non-cash activities:

Debt discount on note payable extension 47,500$ —

Accrued cumulative dividends on preferred stock 156,300$ 214,575$

Conversion of preferred stock to common stock 331,800$ 4,700$

Common stock issued for settlement of notes payable 310,000$ —

Common stock issued for settlement of accounts payable 46,500$ —

Equipment acquired in legal settlement 275,000$ —

Preferred stock issued in lieu of accounts payable — 40,000$ Source: New Century Companies, Inc.

Table 9NEW CENTURY COMPANIES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Years Ended December 31, 2005 and 2004


Risks Some of the information in this Executive Informational Overview® (EIO®) relates to future events or future business and financial performance. Such statements can only be predictions and the actual events or results may differ from those discussed due to the risks described in New Century’s statements on Forms 10-KSB, 10-QSB, 8-K, as well as other forms filed from time to time. The content of this EIO® with respect to New Century has been compiled primarily from information available to the public released by New Century through news releases, Annual Reports, and through SEC filings. New Century is solely responsible for the accuracy of this information. Information as to other companies has been prepared from publicly available information and has not been independently verified by New Century. Certain summaries of activities have been condensed to aid the reader in gaining a general understanding. For more complete information about New Century, please refer to the Company’s website at www.newcenturyinc.com. Investors should carefully consider the risks and the information about New Century’s business described below. Investors should not interpret the order in which these considerations are presented as an indication of their relative importance. The risks and uncertainties described below are not the only risks that New Century faces. Additional risks and uncertainties not presently known to New Century or that New Century currently believes to be immaterial may also adversely affect its business. If any of the following risks and uncertainties develop into actual events, the business, financial condition, and results of operations could be materially and adversely affected, and the trading price of its shares could decline. Operating Results Fluctuate The Company’s results of operations for any quarter or year are not necessarily indicative of results to be expected in future periods. New Century’s future operating results may be affected by various trends and factors that must be managed in order to achieve favorable operating results. The inability to forecast these trends and factors could have a material adverse effect on its business, results of operations, and financial condition. The Company’s operating results have historically been and are expected to continue to be subject to quarterly and yearly fluctuations as a result of a number of factors. These factors include:

adverse changes in the conditions in the specific markets for its products;

visibility to, and the actual size and timing of, capital expenditures by its customers;

inventory practices, including the timing of deployment of its customers;

adverse changes in the public and private equity and debt markets and the ability of its customers and suppliers to obtain financing or to fund capital expenditures;

adverse changes in the credit ratings of its customers and suppliers;

a general downturn in the overall economy;

a decline in government defense funding that lowers the demand for defense equipment and

retrofitting;

competitive pricing and availability of competitive products; and

adverse changes in the ability of the company to obtain financing or to fund capital expenditures, mergers and acquisitions or growth.

As a consequence, operating results for a particular period are difficult to predict. Any of the above factors could have a material adverse effect on New Century’s business, results of operations, and financial condition.


Reliance on External Financing to Meet Cash Requirements The Company will continue to rely upon external financing sources to meet the cash requirement of its ongoing operations. New Century is currently seeking additional capital in the form of equity or debt, or a combination thereof. However, there is no guarantee that it will raise sufficient capital to execute its business plan. To the extent that the Company is unable to raise sufficient capital, its business plan will require substantial modification and its operations curtailed. These conditions raise substantial doubt about New Century’s ability to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to ultimately attain profitable operations, generate sufficient cash flow to meet its obligations, and obtain additional financing as may be required. Volatile Share Price The Company’s Common Stock has experienced, and may continue to experience, substantial price volatility, particularly as a result of variations between its actual or anticipated financial results and the published expectations of analysts and as a result of announcements by its competitors and itself. In addition, the stock market has experienced extreme price fluctuations that have affected the market price of many companies and that have often been unrelated to the operating performance of these companies. A major decline in the capital markets generally, or in the market price of New Century’s securities may negatively impact its ability to make future strategic acquisitions, raise capital, issue debt, or retain employees. These factors, as well as general economic and political conditions, may in turn have a material adverse effect the market price of the Company’s Common Stock. Seasonality The Company’s business is subject to certain seasonal fluctuations in sales, with a pattern of net sales being lower in the second fiscal quarter, due to plant closings in the summer months and vacations. The market for machine tools is also sensitive to economic conditions, production capacity utilization, and the general level of business confidence. Competition The market for remanufacturing services for the machine tools is competitive with competition from numerous independent rebuild suppliers with various sales and resource levels. The Company believes it possesses a competitive advantage in that it employs skilled personnel who have been trained for and have experience with these products. Principal competitive factors for the Company’s products and services are proprietary technology, customer service, technical support, delivery, and price. Sources and Availability of Raw Materials The Company’s products are manufactured from various raw materials, including cast iron, sheet metal, bar steel, and bearings. Although its operations are highly integrated, New Century purchases a number of components from outside suppliers, including the computer and electronic components for its CNC turning lathes. There are multiple suppliers for virtually all of its raw material and components. To date, the Company has not experienced a supply interruption.


Recent Events 04/17/2006—Announced financial results for the fourth quarter and full year ended December 31, 2005. Revenues for the fourth quarter ending December 31, 2005 were $1.8 million, up 119% from $878,000 in the fourth quarter of 2004. For all of 2005, revenues were $6.0 million, up 31% from $4.6 million in 2004. The Company attributed the increase in revenues to a surge in orders for remanufactured machine tools, especially in the second half of 2005. Net income available to common shareholders for the fourth quarter of 2005 was $194,760 or $0.02 per fully diluted share, compared to a net loss of ($560,000), or ($0.08) per fully diluted share, a year earlier. For all of 2005, net income available to common shareholders totaled $512,000, or $0.05 per fully diluted share, up from a net loss of ($1.8 million), or ($0.25) per fully diluted share, in 2004. Fourth quarter operating income was $117,000, up from an operating loss of ($626,000) in the fourth quarter of 2004. For all of 2005, operating income was $566,000, up from an operating loss of ($1.8 million) in 2004. 03/07/2006—Announced that it has completed a private placement that should enable the Company to finance its previously announced acquisition of the construction materials firm Quilite® International, Inc. The private placement, with an accredited institutional investor, provided New Century with $2 million at closing, with an additional $1.5 million placed into an escrow account for the Quilite® International acquisition. In addition, the investor has been granted the right to advance up to $1.5 million in gross proceeds to New Century within one year on the same terms and conditions as the transaction just completed. The investor has also received warrants to purchase up to an additional $2.19 million in New Century common stock at a cash exercise price of $0.63. 02/06/2006—Announced that its Board of Directors has decided to explore strategic alternatives to enhance shareholder value. As part of this decision, the Company has engaged Ascendiant Securities LLC to support its decision. 01/30/2006—Announced that the Company’s Quilite® sound walls product line has been showcased as a featured product by Arabian Access to its audience of elite Middle East investors and institutions. New Century is actively seeking Middle East distributors and investors for its Quilite® product line via its relationship with Arabian Access. 01/09/2006—Announced that it received four new orders totaling $1.23 million in December 2005. The Company’s order volume for the last five months of 2005 now totals $4.91 million, which comes to nearly $1 million per month and exceeds the $4.6 million in revenue recorded for all of 2004. The new orders are for three Vertical Turning Centers and one duplex mill. The machines are being sold to a Michigan-based provider of milling, Cad/Cam, grinding and other machining services; a Florida-based maker of high performance components for fluid power systems; a southern California-based fabricator of aerospace components; and an Oklahoma-based manufacturer of power transmission components in the utility, construction, forestry, marine, and mining markets. 11/15/2006—Announced financial results for the third quarter and nine months ended September 30, 2005. Net sales for the third quarter totaled $1.60 million, up 37.5% from the $1.17 million in the third quarter 2004. The Company said the increase was primarily due to a sharp rise in orders for its remanufactured Vertical Turning Centers. For the nine months ended September 30, 2005, net sales were $4.24 million, up 13.95% from the $3.73 million for the same period last year. EPS for third quarter 2005 were $0.04, versus ($0.08) for the same period last year. 10/28/2005—Announced new orders totaling $950,000 for Vertical Turning Centers. The Company also reported that requested quotes have been running at historically high levels since the beginning of September. The latest orders follow $2.7 million in orders reported by New Century during August and September 2005. Revenue from the new orders will be recognized during the fourth quarter of 2005 and the first quarter of 2006. 10/21/2005—Announced a rise in demand and an expectation to eliminate debt and apply for exchange listing in 2006. New Century stated that its cash flow improved to the point where it can meet new orders without further outside borrowing or equity placement. Further, it is on track to pay off short-term notes


payable by approximately the middle of 2006. In light of its improved capital position, New Century expects to meet the NASDAQ and AMEX requirements during 2006, and plans to apply for listing in one of those markets sometime that year. 09/16/2005—Announced that it received an order from a previous customer for $575,000 for a large Vertical Turning Center. The machine will be used to manufacture the large components used in the construction industry. 09/14/2005—Announced that it received orders for two Vertical Turning Centers, totaling $630,000 in the first week of September. The orders follow shortly after three Vertical Turning Center orders in August that totaled more than $1 million. Revenue from both orders will be recorded between now and the end of the fourth quarter on December 31, 2005. 08/30/2005—Announced that it received two orders, totaling $760,000 for Vertical Turning Centers. Combined with a Vertical Turning Center order earlier in the month, the Company’s recent major orders have added $1.1 million in revenue, all which will be booked in the third (current) and fourth quarters of 2005. On August 26, 2005, the Company announced a $300,000 order for a Vertical Turning Center that will be used by a major midwestern U.S.-based machine shop to make parts for compressors used in oil and gas extraction. 08/26/2005—Announced that it received a $300,000 order for a Vertical Turning Center. The new order is expected to be booked in the second half of 2005. The Vertical Turning Center will be used by a major midwestern U.S.-based machine shop to manufacture parts for compressors used in oil and gas extraction. 08/23/2005—Announced gains in revenues and operating income for the first half of 2005. The Company’s revenues for the first half of 2005 increased 3% to $2.63 million from $2.56 million in the first half of 2004. New Century’s gross profit for the first half of the year increased by over 2,850% to $758,187 up from $26,517 for the same period last year. Net operating income for the first half increased to approximately $102,000 from a loss of $710,000 in the first half of 2004. 08/17/2005—Announced that it is now manufacturing Quilite® brand lightweight sound-absorbing modules for transportation and other uses. The Quilite® production, in which New Century assembles Quilite® blocks into modules for shipment to job sites, uses existing spare manufacturing capacity at the Company’s California plant and requires no additional outside capital. 05/25/2005—Reported financial results for its first quarter ended March 31, 2005. The Company generated revenues of $1.43 million for the three months ended March 31, 2005, a 46% increase from $979,308 from the year-ago period. The increase is the result of less foreign competition and improved market conditions. Gross profit for three months ended March 31, 2005 was $386,019, compared to a gross loss of $34,693 for the three months ended March 31, 2004. The increase in gross profit is primarily due to decreased labor costs and increased outsourcing. 04/27/2005—Reported that it received orders for $1.8 million for Century Turn Vertical Turning Centers. This new business raises orders in process to $4.85 million. 04/25/2005—Announced that it received a signed commitment for $5.0 million long term senior debt facility. Terms of the agreement include 15 years’ interest only with principal paydown thereafter and a minority stock ownership in New Century. The senior debt is expected to close in 60 days and subject to final due diligence by the lender. Proceeds will be utilized by the Company for working capital to build machines for inventory and expand New Century’s manufacturing capabilities in to other business segments.


Glossary of Lesser-Known Terms Absorption—The taking in or incorporation of something, such as a gas, a liquid, light, or heat. Bearing—A device that supports, guides, and reduces the friction of motion between fixed and moving machine parts. Boring Mill—A machine used to increase the size of a hole previously made in a workpiece, usually with the purpose of obtaining a required degree of finish and accuracy in the final hole. Casting—A mold, which may be either cardboard or metal, that is built according to desired shape. Cast Iron—An alloy of iron containing so much carbon that it is brittle and cannot be wrought but must be shaped by casting. Chuck—A device that holds a workpiece in place as it rotates. The chuck commonly has three or four jaws that can be adjusted to fit various sizes. Computer Numerically Controlled (CNC)—Uses commands from an on-board computer to control the movement of cutting tools and rotation speeds of parts being produced. Die—A device used for cutting out, forming, or stamping material, especially: an engraved metal piece used for impressing a design onto a softer metal, as in coining money; one of several component pieces that are fitted into a diestock to cut threads on screws or bolts; a part on a machine that punches shaped holes in, cuts, or forms sheet metal, cardboard, or other stock; and a metal block containing small conical holes through which plastic, metal, or other ductile material is extruded or drawn. Diffused—Widely spread or scattered; not concentrated. Green energy—The energy that is produced and used in ways that produce less air pollution and other environmental impacts. Green energy provides two kinds of benefits: (1) reduces environmental impacts of production and delivery of the energy used; and (2) reduces the environmental emissions from the energy used. Handwheel—A manual override device used to stroke a valve or limit its travel. The handwheel is sometimes referred to as a hand jack. Headstock—The stationary support in a machine or power tool that supports and drives a revolving part (as a chuck or the spindle on a lathe). Landing Gear—On conventional aircraft, the landing gear consists of wheels or tires with supports (struts) and shock absorbers which help in takeoff and landing. Lathe—A machine that works a piece of material such as wood or metal against a tool by rotating it. Mills—A multi-point tool that is used to remove metal from the surface of a workpiece. Morse taper—A standard taper on a drill chuck or lathe drive center which enables the device to be removed from or attached to the relevant machine quickly and easily. Original Equipment Manufacturer (OEM)—The original vehicle or engine manufacturer that provides the original design and materials for assembly and manufacture of their product. OEMs are directly responsible for manufacturing and modifying vehicles, commercially viability and warranty for each product.


Ram—Any of several devices used to drive, batter, or crush by forceful impact, especially: (1) a battering ram; (2) the weight that drops in a pile driver or steam hammer; (3) the plunger or piston of a force pump or hydraulic press. Reflection—The quality of throwing or bending back a wave (light, sound, etc.) from a surface. Retrofitting—To provide (a jet, automobile, computer, or factory, for example) with parts, devices, or equipment not in existence or available at the time of original manufacture. Spindle—Any of various mechanical parts that revolve or serve as axes for larger revolving parts, as in a lock, axle, phonograph turntable, or lathe. Spur—Any sharply pointed projection or the gear that fits on the axle and properly aligns with the pinion gear on the motor when the motor is placed cross ways on the chassis. Tailstock—The movable part of a lathe that supports the dead center. Threads—A helical or spiral ridge on a screw, nut, or bolt. Toolpost—The part of a tool-rest in which a cutting tool is clamped. Transmission—A signal from one person, thing, or place to another. Urban Sprawl—A term for the expansive, rapid, and sometimes reckless, growth of a greater metropolitan area, traditionally suburbs (or exurbs) over a large area. Valve Body—Also called a control valve, a valve body is the central nerve system that tells a transmission what to do and when to do it. The control valve contains springs, valves, and many fluid passages, which are critical to the proper operation of the transmission. Vertical Turning Centers (VTC)—A turning machine in which the spindle axis is perpendicular to the ground floor. Wavelength—The distance that a wave travels in the time it takes to go through one full 360 degree phase change, or one cycle. Workpiece—The part that is being machined.


Intentionally Blank


Jeffrey J. Kraws and Karen B. Goldfarb

Phone: (609) 306-2274 Fax: (609) 395-9339

Email: [email protected] Web: www.crystalra.com

Legal Notes and Disclosures: This report has been prepared by New Century Companies, Inc., (“New Century” or “the Company”) with the assistance of Crystal Research Associates, LLC. (“CRA”) based upon information provided by the Company. CRA has not independently verified such information. In addition, CRA has been compensated by the Company in cash of $35,000 and 150,000 warrants for its services in creating this report, for updates, and for printing costs. Some of the information in this report relates to future events or future business and financial performance. Such statements constitute forward-looking information within the meaning of the Private Securities Litigation Act of 1995. Such statements can be only predictions and the actual events or results may differ from those discussed due to, among other things, the risks described in New Century’s, reports on Forms 10-KSB, 10-QSB, and other forms filed with the Securities and Exchange Commission (“SEC”) from time to time. The content of this report with respect to New Century has been compiled primarily from information available to the public released by New Century. New Century is solely responsible for the accuracy of that information. Information as to other companies has been prepared from publicly available information and has not been independently verified by New Century or CRA. For more complete information about New Century, the reader is directed to the Company’s website at www.newcenturyinc.com. This report is published solely for information purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any state. Past performance does not guarantee future performance. Free additional information about New Century, and its public filings, as well as free copies of this report can be obtained in either a paper or electronic format by calling (562) 906-8455.

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