Koil Energy Solutions Inc. (KLNG)

[1stepahead1]

We are pleased ElectroWave continues...
to win important business within the offshore oil and gas industry," commented Ron Smith, Deep Down's chief executive officer. "We believe that ElectroWave's core business will continue to grow within the expanding offshore oil and gas, and marine industries."



"ElectroWave has developed some very close and lucrative relationships with many large offshore drilling companies, and has established an exceptional reputation for quality products and innovative electronic monitoring and control solutions," commented Martin Kershman, ElectroWave's President. "It is also important to recognize that sales such as these also have an installation labor component, which typically increases the project's total receivable by about 27%."

"When one considers that over the past 90 days ElectroWave has received orders totaling nearly $1.5 million, it becomes clear why we view the acquisition of ElectroWave as a strong corporate growth catalyst, and an integral part of our overall plan to consolidate offshore service providers," Smith concluded.

First announced on January 22, 2007, Deep Down has commenced the due- diligence phase of the ElectroWave acquisition and, upon favorable completion, intends to execute the definitive agreement.

About ElectroWave

ElectroWave offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems. ElectroWave's customers include Transocean Offshore, Diamond Offshore, Marinette Marine Corporation, VT Halter, Atlantic Marine, New York City Department of Transportation, and others. ElectroWave's equipment is installed on some of the latest generation United States Coast Guard and United States Navy vessels. Current systems are in operation in the following areas: United States Gulf of Mexico, the North Sea, Baku, Vietnam, Singapore, Nigeria, Equatorial Guinea, Cameroon, Angola, India, Egypt, the United Kingdom, Russia, Brazil, Australia, Indonesia, and the Middle East. For further company information, please visit http://www.electrowaveusa.com .