Dear Shareholder and Customers,

2008 has been a turning point for SDP. We now own and operate three COGEN Plants, all of which were installed by SDP Construction Division. We have sold and delivered 1500kW of COGEN units to Cal Poly University at San Louis Obispo and to the school system in Connecticut. Our factory is producing monthly 4 units of MAN 250kW and 1 unit of Doosan 170kW. After factory certification, the units are shipped to SDP Test Center, where they are demonstrated and tested for performance and emissions for the COGEN site customer. SDP Construction Group works closely with its site customers as installation progresses and permitting is received. Customer Care Custody and Control documents are systematically signed by both parties to ensure quality delivery of everything specified.

In the second half of 2008, on the straight sales side, SDP will provide over 2000kw gas fields for gas compression. SSP will also sell 4-6 more units to its East Coast distributor for the Connecticut school system. Significantly, SDP will sell its first turnkey biogas system in San Leandro.

Regarding installed sales, SDP has sold and installed a 750kw COGEN system for the Kaiser Permanente Hospital in Vellejo and will provide the service for its operation. SDP also contracted to install a 500kW COGEN system at San Francisco Memorial Hospital. Regarding COGEN sites which SDP will own and operate, SDP contracted for one food processing facility, and one retirement home. Altogether SDP will own over 1000kW of COGEN plant by year end.

The turning point for SDP is that our sales have produced enough cash flow to fund over 12 months operations, and therefore SDP can begin focusing on its “own & operate” business model. I will begin actively soliciting new investment for using to build out new 6500 kW of COGEN plants which SDP will add to its portfolio to become totally financially self-sufficient. The other new areas of focus will be developing additional products in the renewable and alternative energy markets.

SDP is already the leading COGEN supplier in the U.S. It will become the leading one-stop-shop for all forms of renewable energy by the year 2012.

SDP offers savings now and a green world for our children.

Sincerely,

Christopher E. Stowell