11MA Y200821003538 10JUN200812150327 P ro F orma R evenue Segmentation for the T welve Months Ended March 31 2008 Manuf acturing 55 Surf ace Domestic 277 Surf ace Inter national 121 Under g round 547 The Company has established a lowcost operation even with a substantial amount of specialized drilling allowing it to achieve a gross margin of approximately 338 for the twelve month period ended March 31 2008 on a pro forma basis The Companys vertical integration and lowcost operation driven by a combination of organic growth and acquisitions have been key factors in allowing it to grow revenue and Normalized EBITD A as reflected in the following chart from approximately 613 million and 167 million respectively for the twelve month period ended March 31 2007 on a pro forma basis to approximately 756 million and 217 million respectively for the twelve month period ended March 31 2008 on a pro forma basis This represents increases in revenue of approximately 23 and Normalized EBITD A of approximately 30 Management believes that the Companys lean management and overhead structure also place it in the attractive position of being able to maintain and grow market share in an environment of lower commodity prices Financial Statistics 203 255 167 217 613 756 0 15 30 45 60 75 90 Re v e nue G ross Prof it Nor malized EBITD A 1 C Millions L T M ended March 31 2008 12 months ended March 31 2007 on a pro for ma basis Note 1 Normalized EBITD A is not a financial or earnings measure recognized by G A AP Therefore it may not be comparable to similar measures presented by other issuers including other issuers that operate in the same business as Orbit Garant and it should not be construed as an alternative to net income determined in accordance with G A AP as an indicator of performance of the cash flows from operating investing and financing activities or as a measure of liquidity and funds from operations See NonG A AP Measures F or a reconciliation of Normalized EBITD A to net earnings see R econciliation of Historical R esults to EBT EBITD A and Normalized EBITD A included in the Selected Financial Information section of this prospectus History Orbit Garant is the result of the combination of two Qu ebecbased drilling service providers Garant and Orbit P rior to their combination on January 31 2007 Garant focused exclusively on underground drilling while Orbit generated revenue from both underground drilling operation approximately 39 in fiscal 2007 and its 29