Welcome to this first 2006 news update from us all at IAC.

We hope that 2006 sees your business prosper in every way and we hope we can help you in that. At our end, we’re starting the year on a high note – albeit a noise-attenuated one, of course! Our Building Services has hit the ground running, and our Power Business too, having taken the market by storm last year with the introduction of the new range of engine exhaust silencers from IAC Boët Stopson in Lille.

We hope these brief stories give you a flavour of the breadth in our company and the excellence we strive for. We appreciate your business. Thank you.

Best regards

Brian Quarendon, CEO and Group President

THE MAN FROM THE BBC SAYS ‘YES’

A top BBC engineer has personally given our Studio manufacturing standards the thumbs up prior to granting us the contract to build four new Contribution Studios for BBC Radio 2.

The studios are being installed in Radio 2’s new building in Central London, to handle the syndication of news reports and ensure seamless links between programmes.

The BBC engineer had seen our VoiceOver Booth at IBC, in Amsterdam in September, and then wanted to test it in the factory here in Winchester last month. He witnessed reverberation and isolation tests and learned more about Moduline – our patented modular studio build system. He described our tender as ‘the strongest’ and ‘excellent’.

The new Radio 2 studios, all on the ground floor with full disabled access, will be constructed of single skin Moduline ceiling and walls, the latter with fabric wall covering and integrated acoustic doors and windows. The floors will have anti-vibration mounts. This project is the latest jewel in the crown for Ian Rich and the Studios team, adding to those for many broadcasters worldwide.

Contact Ian Rich on 01962 873025 ianr@iacl.co.uk

IAC Boët Stopson in Lille has secured a major order valued at €700k for the supply of vent silencers to one of the world’s major liquefied natural gas plants, based in Qatar.

Won against stiff international competition, the contract for the plant named Qatargas2 was granted by CTEP, a joint venture between two of the world’s leading engineering companies, Technip of France and Chiyoda of Japan. The plant produces 12,000 barrels of LNG a day.

The fifty-eight atmospheric vent silencers will be designed and manufactured according to the stringent ASME code, and then installed on the steam and nitrogen lines at the plant by May 2006. Jean-Jacques Rapez heads the project at IAC Boët Stopson: “ We are now Europe’s leading supplier of such technology. We are one of just a few companies with enough engineering expertise and knowledge to handle all the controls, testing and documentation involved. This is a highly complex project.” A contract for another LNG process train at Qatargas2, of similar value, is expected to be placed before the end of March with delivery by the end of the year.

Contact: Malcolm Hewitt on 01455 559927 malcolmh@iacl.co.uk

LOUVRE BOOM!

Building Services’ Acoustic Louvres business is on a roll following 6 large contracts recently coming to completion worth over £0.5M.

The projects, which have been carried out across the UK, include the following larger orders:

At Intel’s European pentium chip production facility, in Ireland, a huge bank of R-type louvres measuring 7m x 50m was installed on the roof of Intel’s industrial cleaning or ‘scrubber’ facility. While in Brentwood, Essex at the Bay Tree Shopping Centre IAC installed a double-bank R-type acoustic louvred screen to prevent noise from the HVAC systems from breaking out to local offices and residents. The HVAC system’s dry cooling plant at the new Wembley Stadium now benefits from a louvred acoustic screen – a project carried out with one of our many valued partners. Residents nearby the recycling processing centre in Allington, Kent are now also protected from noise thanks to IAC acoustic louvres.

Mike Jackson, Sales Manager said "Our marketing efforts have been keen to stress that our products are well designed by acoustic engineers and really do the job they’re supposed to. It’s been paying off."

Contact Gary Dawson 01962 873059 garyd@iacl.co.uk or visit www.iacbuildingservices.co.uk

POWERING AHEAD INTO 2006

Malcolm Hewitt

IAC’s Power Business is celebrating a number of stunning successes – a first-year sales record and 5 large contracts.

Congratulations go to Malcolm Hewitt for topping £750,000 of new exhaust silencer business in the UK in what has been his first full year of trading since joining IAC. This is the highest level of sales for a new product range in the company’s history.

Three large contracts for high performance Acoustic Enclosures and ‘Balance of Plant’ worth nearly £650K have been secured from Centrax: two Gas Turbine gensets at Goodyear’s tyre manufacturing plant near Lille in Northern France, another at Continental’s tyre production plant in Portugal and a further set is destined for Molve, in Croatia.

Also secured is an order for a ‘Stock Enclosure’ for their stock set in readiness for their next order. This approach will enable Centrax to beat off the competition by providing a ‘package’ sooner than their competitors. If this is successful, then it is envisaged that further stock enclosures and ‘balance of plant’ will follow.

Manufacturing of the equipment is taking place at our Winchester and Lille production facilities, with delivery scheduled for the end of March until June 2006.

Contact: Gordon David on 01206 865987 gordond@iacl.co.uk

IAC HEADS NEW ‘NOISE AND VIBRATION CONTROL GROUP’ INDUSTRY BODY

Geoff Crowhurst, IAC's Divisional Director, UK Acoustics, is the first Chair of NAVCOG - the fledgling ‘Noise & Vibration Control Group’ part of HEVAC in the Federation of Environmental Trade Associations (FETA).

For the first time in many years rival designers and manufacturers of noise attenuators have laid aside their differences and all met together to address a range of industry issues.

Geoff Crowhurst said: “..There has been a growing feeling that we [the industry] should be co-operating in areas of mutual interest. Now that this Group has been formed, our co-operation stands to benefit not only members of the Group itself, but also the HVAC industry.. and all our customers.”

The mission of NAVCOG is: to raise the profile and professionalism of NAVCOG members; to improve product certification, design methodology and industry specifications; and to review performance guarantees and services offered within the HVAC industry.

Michael Duggan, Technical Manager of FETA and HEVAC, welcomes the new group saying that the industry has lacked the standing it deserves. “We look forward to seeing the fruit of their labours.”

For more information on NAVCOG visit www.feta.co.uk

Contact Geoff Crowhurst, Chair on 01962 873000 geoffc@iacl.co.uk

IAC IMPRESSES CHINA’S TOP 200 NOISE ENGINEERS

Two of IAC’s top acoustics engineers flew to Shenzhen, China late last year to attend this year’s Academic Conference on Noise & Vibration Control Engineering.

“Lower noise pollution – more green life” attracted over 200 delegates from academic and government institutions in all parts of China.

IAC China sponsored the event. Established in 1993, and employing 200 people, the company has become one of China’s most prominent noise control engineering firms.

IAC China presented papers on 6 topics including ‘Design of Noise Control for a Metro Ventilation System’ and ‘Construction of a RF-Shielded, Acoustic Security Room’. Geoff Crowhurst, IAC's Divisional Director, UK Acoustics and Pascal Riche, Business Manager Power Solutions from IAC Boët Stopson France then made commercial presentations on anechoic chamber design and noise control solutions for power plants.

Geoff Crowhurst said: ”Our presentations were very well attended. There is an increasing requirement for noise control in China and a high level of interest in IAC’s expanding local capabilities which keeps us at the forefront of noise control technology in the region.”

Contact Geoff Crowhurst on 01962 873000 geoffc@iacl.co.uk

NEW MOBILE AEROENGINE TESTING FOR HERCULES AIRCRAFT

At Aerospace Testing Expo, Europe’s biggest Show, in Hamburg this April IAC Aviation is unveiling what we believe to be Europe’s first fully mobile engine test facility for the C130 Hercules transport aircraft.

IAC Aviation supplies test solutions to military and civil aircraft operators world-wide, and is the approved design authority to the UK’s Ministry of Defence. Developed initially for use by the Belgium Defence Force at their base near Brussels, this is one of the most comprehensive engine testing systems that IAC Aviation has developed to-date. It incorporates our own, purpose-designed Aquarius Data Acquisition System (ADAS), considered to be among the most sophisticated available in Europe today.

Claire Fawlk, Aviation Sales Manager, said: “The C130 is used by over 60 countries worldwide for military and NATO needs and humanitarian missions. One of the most popular military aircraft in the world this is potentially a huge market for us.”

Adj. Jozef Calloens is Material Manager, C130 Propulsion with the Belgium Defence Force: "We are highly satisfied with the T56, all delivered on time and within budget within the usual public sector constraints that we face on such projects. I was impressed with the IAC Aviation team – they did their maximum to help us throughout the contract implementation and communications with us were consistently very good. On a personal level, I also found them good people to deal with."

Visit us in Hamburg on Stand 106/A1 of go to www.iacaviation.com for more information.

Contact: Claire Fawlk 01962 873104 clairef@iacl.co.uk