Shareholder Presentation

Success Drivers

People

(Human Resources)

•

Leadership

•

Recruit the best

talent

•

Make sure “right

people are on the

bus”

•

Make sure “right

people are in the

right seats”

Process

•

Retool our

business

•

Establish business

processes to

ensure success

•

Hold people

responsible and

accountable

•

Create a culture of

discipline

Cultural Transformation

•

Team building

•

Confront the brutal

facts

•

No sacred grounds

•

Challenge the

status quo

•

Change is

imminent

Human Resources Initiatives

Screening,

Recruiting,

Development

Programs

Wonderlic

Personnel

Test

On-the-job Training

Developing talent from

within (16

man

program)

Licensing Programs

(Captains, Mates &

Engineers)

Spotter Pilot Training

Retention and

Succession

Planning

Marine Maritime

Academy

Internship

Program

H2B Visas

Performance

Metrics

Captains

Score Card

Reaching out

to external

talent

Captain’s Score Card

Fish Catch

10000

20000

30000

40000

50000

60000

SETS

100

150

200

250

300

350

400

450

MAJOR REPAIRS

50000

100000

150000

200000

250000

Process Improvement Initiatives

(Reedville Specific)

•

Prevent particulate emission

•

Reduce nuisance odor

•

Increase drying capacity

Dupps Dryer

(2010)

•

Energy cost reduction

Waste heat evaporator

(2012)

•

Fish meal recovery

•

Oil recovery-

potentially as biofuels for boilers

Product waste streams

solids recovery

(2012 & beyond)

•

Improve system efficiency (DAF installation)

•

Process water conservation

Waste water treatment

systems upgrade

(2009 & beyond)

Process Improvement Initiatives

(Reedville Specific)

•

wood-chip-burning technology evaluation

•

Biofuels

Energy conservation

(on-going)

•

Process data collection and analysis

Automation/PLC

(2010)

•

Purchase of surplus bait fish

Contract Fish

Procurement

(2009 & beyond)

•

Expand fishing opportunities

North Carolina Fishing

Model

(2010 & beyond)

Process Improvement Initiatives

(Global)

Enterprise Asset

Management System

(2012 and beyond)

Omega Shipyard

Expansion

(2010)

Upgrade fishing / carry

vessels

(2011 & beyond)

Link purchasing / spare parts inventory /

preventive maintenance

Allow to leverage better procurement

opportunities

Third dry dock construction

Fleet refurbishment

Contract projects

Acquiring off-shore supply vessels

(OSVs)

Process Improvement Initiatives

(Global)

Expand carry vessels

concept

(2011)

Catamaran

(2010-2011)

Lean Manufacturing/

Continuous Improvement

(2011 & beyond)

Boatracs Installation

(2010)

•

Proof of concept in Moss Point on a full scale

•

Proof of concept in Reedville on a small scale

•

Experimental unit

•

Collect and analyze data

•

New concepts are in development phase

•

Overall Equipment Effectiveness (OEE)

•

Fish catch logistics and management

•

Enhanced communication

Operations Objectives

Maximize Fish

Catch

Reduce/Control

Costs

Maximize

Current Asset

Utilization

•

Captains

•

Crews

•

Equipment reliability

•

New / improved fishing techniques

•

Process capacity / throughput / economies of scale

•

Process improvement projects

•

Continuous improvement / Six-Sigma

•

Conduct energy & mass balances

•

Identify bottlenecks / streamline the process

•

Reduce downtime

Reedville Background

1903

1913

1960s

1970s

1990s

1998

John A. Haynie Co.

Haynie Snow & Co.

Reedville Oil &

Guano

Haynie Products

Zapata Haynie Corp.

Zapata Protein Inc.

Omega Protein, Inc.

1878

George Henry Deihl, Menhaden Captain circa 1910-1930 (Monty’s Great-grandfather)

Irvin L. Deihl, Sr., Menhaden Captain, 1935-1968 (Monty’s Grandfather)

Irvin L. Deihl Jr., Menhaden Captain, 1959-1999 (Uncle)

Harold ‘Teenie’

Deihl, Menhaden Captain, 1960-2001 (Uncle)

Henry C. Deihl, Menhaden Captain, 1963-2007 (Father)

James Deihl, Menhaden Captain, 1967-2000 (Uncle)

John Mark Deihl, Spotter, 1992-present (Brother)

Joel C. Deihl, Fishermen, 2010-present (Son)

Kenneth Loving, Chief Engineer, 1975-present (Father-in-law)

Diehl Family History in Reedville

Menhaden Fishing

Pursing the net; photo of Grandfather,

Capt Irvin L. Deihl, Sr. circa 1958, on a

set in Chesapeake Bay

Crew of M/V ‘Margaret’

1956; Capt Irvin L.

Deihl, Sr;. son Irvin L. Deihl, Jr (21 yrs old)

is Mate (standing holding line) and another

son, Henry C. Deihl (15 yrs old) (Monty’s

father) at far right

Getting ready for the Steamer to pick up; M/V

‘Margaret’

circa

1958,

photo

year

old

Henry

Deihl on right and 16 year old brother James

Deihl standing looking in net

(another son of Capt Irvin Deihl, Sr)

year

old

Irvin

‘Bucky’

Deihl,

Jr.,

Mate,

bridge of M/V ‘Margaret in 1958. This photo

is on the cover of Omega’s video series CD

Fish Processing Plant

Number of employees

275 (Marine & Shore Side)

Fish Processing Capacity

Up to 600+ million fish

Oil Processing Step 1

Silica Treatment

Silica is added to crude oil under heat to remove

proteinaceous, mucilagenous materials.

Oil Processing Step 2

Fractionation

Oil is chilled over time in crystallizers and saturate fraction

is filtered

•

reduces the saturate level and clarifies the oil

•

increases omega-3 content

Oil Processing Step 3

Refining

Sodium Hydroxide (NaOH) or caustic

is added to heated oil. The oil is then

mixed, centrifuged and washed with

water to remove excess caustic and

soap.

•

reduces the free fatty acids via

conversion to water soluble soap.

•

reduces materials which contribute to

odor reversion and oxidation in the

deodorizer.

Oil Processing Step 4

Bleaching

Absorbent technology using clays,

carbon, montmorillanite, bentonite,

silica, diatomaceous earth, etc.

added to heated oils under

vacuum. Oil + clay are then

filtered to remove the clay.

•

removes pigments and lightens

color.

•

removes metallic cations (iron,

copper, cadmium, arsenic) to

reduce oxidation.

Oil Processing Step 5

Deodorization

Refined Oil is heated to ~400 deg F

under high vacuum (<7mmHg),

dried, degassed, then steam is

injected into the oil to remove

flavor, odor and residual free fatty

acids, aldehydes, ketones, and

other volatile components etc.

•

carefully controlled deodorization

gives a flavorless menhaden oil.

Oil Processing Step 6

Stabilization

During Deodorization, chelators are added (aqueous

citric acid), to chelate or bind residual metals.

Antioxidants are added during cool down in the

antioxidant addition tank and metered into the oil on the

way to storage.

•

Mixed Tocopherols

•

Vitamin E

•

TBHQ –

tertiary butylhydroquinone

•

Ascorbyl Palmitate

Omega-3 &

Animals

Danny, the polar bear, had a fatty acid deficiency:

•

itching coat, inflammation

•

listless

•

unhappy

Omega Protein provided

appropriate amount of

Omega-3 oil for his diet

& in 3 months…

Cincinnati Zoo, 2000

Danny is much

better