Koil Energy Solutions Inc. (KLNG)

[wweeaazz]

Received this last month.

Mr. XXXX:

My preliminary review shows that former directors of DPDW had their holdings reduced by about 90% from 50,000,000, to just around 5,000,000 in some shrewd and very shareholder friendly transactions last year. I am unable to tell what their intentions or activity has been as they are private shareholders now.

As to the "sell off?" Such low volume does not strike me as a "run for the exits" but rather, in my opinion, successful retailer shakeouts by savvy MM's, institutions, and brokers. But, realistically, it is nearly impossible to accurately describe who's is doing what in any given day-to-day trading.

I can however, point to the facts - the company's performance has been stellar, on-track to double, or maybe more, its 2006 earnings, two accretive acquisitions under its belt already, and company insiders have not sold a single share, they have, in fact, accumulated more holdings. Take that into consideration for what it is worth.

I am also aware that the small float causes wider swings on smaller volume and IMO the "chartist's philosophy" many traders ascribe to is a self-fulfilling one. Focus on only one metric (i.e., "the backward looking chart") and you get a VERY skewed picture of anything - simple statistics tells us this. Case in point: your company's magnificent actual performance vis-à-vis the current stock price.

Again, in my opinion, with the company's obvious strong performance, why would anyone sell at this point? That is a question you'll have to ask a seller, as their reasons are many and usually different for each individual.

Not that you should take ANY investment advice from me, nor do I give it. However, I have had heard from other shareholders gleefully calling this a "buying opportunity," for what that is worth as well.

I am cognizant of the fact that real money is on the line here; I have watched my own holdings go up and down and, it is fun going up and quite painful going down. But, if your goal is medium and long term investment in a solid company, I can't think of a better company to do due-diligence on than Deep Down and its management, core business, business plan, and industry.

Hope to speak with you soon, and thanks for your continued interest in DPDW

Regards,

--Steve Haag
investor relations

Deep Down, Inc. (OTCBB: DPDW)
[e-mail]

281-862-2201 (O)
281-862-2522 (F)

These are simply my personal comments, and should not be relied upon in your investment decisions. I strongly urge you to conduct your own due diligence with regard to any investment in Deep Down, Inc. I respectfully refer you to Deep Down's filings with the United States Securities and Exchange Commission.