Aluminium Wheels Investment

Fundo Wheels AS (“Fundo”), a Norwegian company with operations located in Høyanger, Norway, is an original equipment manufacturer of cast aluminum wheels for high end European automobile original equipment manufacturers. As at December 31, 2008, the Company held a 45.3% equity interest in Fundo. The remaining 54.7% equity interest in Fundo is held by the community of Høyanger, the Høyangerfondet Foundation and Sogn og Fjordane Fylkeskommune.

The Company has from time to time provided subordinated debt financing to Fundo. On February 12 and July 11, 2008 the Company advanced funds to Fundo to address short term working capital deficits while Fundo pursued potential new sales opportunities in the automotive industry and continued the development of its hybrid wheel technology. Throughout the summer of 2008 the automotive industry experienced a significant decrease in overall demand for the standard wheels manufactured and sold by Fundo. By the end of the third quarter 2008, the Company determined that it would no longer fund Fundo’s working capital deficits. Fundo’s management attempted to secure additional capital and liquidity; however, it was ultimately unsuccessful. In the third quarter 2008, the Company’s investment in Fundo, consisting of equity and loans, was written down to $nil, which was management’s best estimate of its fair value. On January 12, 2009, Fundo commenced bankruptcy proceedings in Norway.