NOVEMBER 2011

History

Dean Catamarans has a proud 27 year history of catamaran building in South Africa and in fact is not only the oldest catamaran builder in South Africa but also regarded as one of the world's big 5 builders. Over the years we have delivered 320 yachts to customers stretching across the globe. The father and son team, Mr. Peter Jesse Dean and Mr. Peter Mills Dean, founders and owners of Dean Catamarans have and continue to impose their core value systems: Safety, quality, comfort, after sales service, passion for product, innovation, pride and value for money…because we care! Importantly, Dean Catamarans is a member of the South African Boat Builders Council and the Cape Town Boat Building & Technology Initiative. Mr. Peter Jesse Dean has been awarded a Merit Award for long service to the industry and Peter Mills Dean sits on the Board of Directors of the South African Boat Builders Export Council. Dean Catamarans are the pioneers of catamaran building in South Africa and remain as committed to the industry that they entered 31 years ago. Despite the global economic meltdown, Dean Catamarans has not only managed to weather the storm but has been busy defining ways in which it can unlock value and provide current and future Dean boat owners with quality and competitively priced custom hand built yachts. During the difficult times Dean Catamarans appropriated a substantial amount of cash reserves to new product development the result of which is the stunning new D5000 sail catamaran that boasts sexy sophisticated lines, dynamic interior and fantastic sailing ability. To this end we are confident that our strategy to grow our business will be of benefit to the yachting industry as a whole and in this regard we are pleased to announce that we have re-engineered our company and have also developed value added services that will be of benefit to our current and future boat owners.

New Management

Our management team has been beefed up to ensure that we can sustain our growth and we are happy to announce the following appointments and promotions:

Garth Carstens: Acting Chief Executive Officer – Garth has 30 years business experience founded in global boutique investments specific to currency hedge programs related to the marine stainless steel tank container and yachting industry. Garth spent 16 years in the Caribbean charter and yacht management industry promoting currency hedge investments to the global investment community and has an acute understanding of the yachting industry and global financial markets.

Bernard Mondoulet: International Sales Director – Bernard has been Dean Catamaran's European Agent for 12 years and brings his years of experience to the board of directors and management team.

Rudolf Jonker: Production Director – Rudolf has been production manager for 14 years and is regarded as one of the most astute boat builders in South Africa.

In line with our growth strategy we are currently in negotiations to appoint several new agents that will ensure that Dean Catamarans has greater global representation.

New Services

Coconut Cruise Club - we are excited to announce that we have developed and are introducing a Yacht Co-Ownership Program under the name of Coconut Cruise Club. This innovative program places emphasis on yacht ownership as an investment with the pleasure of sailing as a by-product. Our program is ideally suited to sail boat lovers who simply do not have the time to enjoy perennial sailing not to mention the cost effectiveness of co-ownership linked to a revenue stream that can offer hard currency returns in excess of 10% pa.

Dean Boat Owners Association - over the years we have managed our business in a transparent manner and always with the objective of delivering on our clients expectations. No production based business is without problems and we have encountered our fair share of challenges over the years and therefore we have introduced a Dean Boat Owners Association that has the intention of creating a forum that can be used by our boat owners to share information, experiences, problems, solutions to problems and the likes. We regard each of our boat owners to be a part of the Dean Yachting Family and in most instances have developed mutual friendships with our boat owners many of which have become multiple owners of our yachts. The Association has nominated a President and Secretary from the ranks of current Dean boat owners and the Associations website will be activated during the end of November 2011.

New website

In line with industry standards and expectations our new website has just gone live and contains more information than before and is more user friendly. We invite you to browse through the new web pages

Boat Show News

We recently attended the Cannes Boat Show in France during September and the Cape Town International Boat Show in October and we are happy to announce that the shows were a great success. We made a number of new friends and reacquainted ourselves with old friends. We were surrounded by competitors all of which have stunningly beautiful boats and we felt privileged to be settled amongst the world's best.

Production News

We are currently manufacturing four yachts and start with a fifth yacht next week. A further service that we are providing our clients with will be the ability to monitor their yachts under construction. We are in the process of installing real time web cameras into our company owned factory with a view to offering our boat owners peace of mind through our transparent business approach. Furthermore, as we realize that our client's expectations are our first priority, we are introducing cutting edge technology and manufacturing processes and procedures that will ensure delivery on expectations. Our factory floor has been streamlined and our production staff are continuously trained in line with new technology, new products, new systems and efficiency procedures that all culminate in a quality product and savings passed on to our clients.

Hard Facts Regarding D441

Dean Catamarans has traded for 31 years and as mentioned before, no production based business is without problems. In this regard we have and will always continue to stand by our product and ethos and when contractually or morally called upon to oblige our clients that have warranty related issues, we have and will honor all such claims based on merit. It is a sad fact that at a recent international boat show prospective clients returned to inform us that several of our competitors had resorted to maligning our product based on a quality issue that we have with a few of our D441 series. We acknowledge that we had an isolated problem on one of our bulkheads and this problem has been addressed. We have gone to great length and expense to remedy the error and indeed have renewed our CE certification, obtained approval by our certification authority and have a Repairs Procedure Manual approved. We appointed the services of unbiased industry related specialists including marine surveyors, naval architects and Design Engineers as well as composite experts to carry out stress calculations. A complete CE assessment was done and all the documentation forwarded to our certification authority. Our 2 – 3 day repair procedure will commence during the month of November 2011 and the D441 in question will be attended to.

Capitalization

Dean Catamarans is funded by the founders and current owners of the company and assets include an unencumbered 3, 500 square meter factory, movable assets including moulds and equipment and intellectual property that has been independently valued all of which collectively represent a market capitalization in line with a medium sized business.

Vision

With new blood comes new vision and under the leadership of Garth Carstens the value of Dean Catamarans will be unlocked via a strategic plan that is bold but yet very achievable. It is not our intention to become a sausage factory as we differentiate ourselves by offering customization and personal attention to each and every one of our clients. We believe in quality and not quantity and although our vision is to grow our business this will only be done in line with our strategy and the resources that we have on hand. We believe in sustainability and this also includes the introduction of a new model that is currently under design and will be bought to market in the near future.