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Business Overview

LD Micro Conference
December 9, 2010
Safe Harbor Statement

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any
statements set forth in this presentation that are not historical facts are forward-looking
statements that involve risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements, which may include, but are not
limited to, such factors as unanticipated changes in product demand, increased
competition, downturns in the economy, failure to comply with specific regulations
pertaining to government projects, fluctuation of revenue due to the nature of project
lifecycles, and other information detailed from time to time in the Company filings and
future filings with the United States Securities and Exchange Commission. The forward-
looking statements contained in this presentation are made only of this date, and the
Company is under no obligation to revise or update these forward-looking statements.

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Investment Highlights

• One of the few large scale, precision


manufacturing and fabrication companies in
the United States; high barriers to entry
• Well-positioned to capitalize on growing
alternative energy (solar and wind), nuclear
energy, defense, clean tech, aerospace and
medical equipment markets
• 60-80% of gross profit drops to EBITDA line
• $1.02/share in working capital at 9/30/2010
• Strong management team executing
attractive growth strategy; organic and
inorganic
• Predictable financial model with recurring
revenue

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TechPrecision

• TechPrecision Corporation (OTC BB: TPCS)

– Corporate office location: Saucon Valley, PA


– Umbrella organization established in February 2006
– One of the few public companies in the space
– New management, additional board members with deep industry experience

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Ranor Subsidiary

• Ranor Inc. (TechPrecision subsidiary)

ISO 9001
– 20+ years average staff tenure
– ISO 9001:2008 certified, ASME shop
– Large-scale projects with tight tolerance levels
– One of a few end-to-end solution providers; increasingly fewer manufacturers
capable of matching TPCS in its industries served
– Ability to engineer requisite tooling and entire manufacturing process for each
respective production program
– One of few remaining N-stamp (nuclear) certified machining/fabrication companies in
the US
– Quality certifications include NAVSEA S/T-9074 and MIL-Q/I/ST
– Fully integrated services create high barriers to entry

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China Subsidiary

• Wuxi Critical Mechanical Components Co., Ltd. (TechPrecision subsidiary)


TechPrecision Corporation Creates Wholly Owned
China-Based Subsidiary to Address Growing Demand
for Solar and Nuclear Energy Manufacturing in Asia

• 80% of poly silicon panels and many nuclear reactors are


scheduled to be built in China
• Key customers indicated interest in expanding business with
TechPrecision if we could support them locally in Asia
Wuxi, China
• We moved quickly to meet this demand by establishing:
Wuxi Critical Mechanical Components Co. Ltd.

• US and some European customers still served by facility in


Westminster, Massachusetts
MA
• Manufacturing processes and IP developed and protected in
US (maintain strategic advantage)
• Sensitive government and defense work

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Markets We Serve

Alternative Energy

Medical

Nuclear

Defense

Aerospace

Commercial Industry
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Select Customers

Alternative Nuclear Defense Aerospace Medical


Energy
(Solar and Wind)

(Electric Boat)

Commercial

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Nuclear Energy Business

• Nuclear addressable markets


– New Construction: Advanced nuclear plant construction
required on a global basis
– Outage: Existing nuclear power plants will require hundreds of
millions of dollars in replacement equipment
– Storage: new requirements for spent fuel and fuel transport
• Significant capital expenditure cycle in the nuclear
industry over the next few years (Source: Nuclear Energy
Institute)

– $56B of debt guarantees from the US Government for new


plant construction (up from $18B)
– 104 existing US plants = $25M/plant per yr. for $2.6B annually
– Total procurement 104 plants = $13.29B annually
– New nuclear plant 2010 = $9 - $14B/plant
• One of few ASME N-stamp certified providers of
high-precision components to the nuclear industry
– Allows for the design and construction of commercial nuclear
equipment, and nuclear storage and shipping equipment
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Alternative Energy Business

• Alternative Energy addressable market (Source: CleanEdge, 2010)


– Wind and Solar = $99.6B annually in 2009
– Growing to $231B in 2019
• Manufactures a proprietary product for the solar industry
– Focused on multicrystalline wafer production
– Target expansions in mono-crystalline and CIGS markets

• Expanding programs for high energy wind turbine


• Alternative Energy has strong long-term prospects
– Rising energy demand/prices
• 40% increase in electric demand by 2030
– Increasing scarcity of traditional energy resources
– Growing adoption of government incentives
10%+ efficient
CIGS panel

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High-Potential Medical Device Business

• Medical Device addressable market (Source: espicom, 2010)


– 2010 US market size = $94.9B
– Exclusive manufacturing and supply agreement to produce key components for a
revolutionary proton beam radiotherapy device to treat cancer
• PBRT is favored in situations where risks to healthy neighboring tissues has
the greatest potential risk to quality of life
• Pediatric cancer • Brain tumors • Bone & spinal cancer
• Prostate cancer • Ocular cancer • Liver cancer
• Head & neck cancer • Lung cancer • Colon cancer

Conventional Radiation Proton Radiation Beam


Beam
Limited radiation dose

No radiation dose

Equal radiation Majority of


dose Radiation dose

= Cancer Tumor = Radiation Beam

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Defense & Aerospace Business

• Navy addressable market (Source: Congressional Budge Office Report & 111 th Congress
House Report 111-230)
– Spending for new navy ships (313 ship fleet target) = $25B/year
– Shipbuilding and conversion appropriations: $13.1B in 2009
– Shipbuilding and conversion budget request: $13.8B in 2010
• Precision fabricated and machine components for multiple
defense contractors
– Production subassemblies for nuclear submarines
– Prototype components for use on the DDX destroyer
• Jet engine test equipment for large jet engine
manufacturers
• Large- and small-scale fuel cell domes for commercial
rocket booster cores
• Key supply chain relationships with several large defense
contractors

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Revenues by Industry

Fiscal Year 2009 Fiscal Year 2010

Medical, 6.05%
Shipbuilding, 5.46%
Defense, 25.92% Nuclear, 6.28%
Commercial Other, Medical, 9.93%
9.40% Aerospace, 3.39%
Nuclear, 1.26%
Aerospace, 1.32%
Commercial/Other,
Defense, 15.20%
6.31%

Alternative Energy, Alternative Energy,


57.44% 52.05%

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Growth Strategy

• Diversify platform and product mix for long-term


sustainable growth

• Target high-margin projects with more predictable cost


structures

• Focus on high-growth alternative energy, nuclear,


defense, clean tech and medical industries

• Deploy proactive BD/sales/marketing processes


• Expand the direct sales and sales representative force
• Expand business through global organic growth

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Relative Margin Contribution & Mix
Supply Chain Ancillary Services
Position
• Production engineering
Multiple Production
30+% Programs Turn-key Tier 1- 2
services • Collaborative prototyping

Mix of Tier 1- 2
25-30% Production & • Quality program
Project Work

• Robotic welding services


23-26% Specialty
Prototyping Tier 1- 3
• Non destructive examination
Bid-buy and inspection services
18-22% Project Work Tier 3 - 4

• Highly adaptive non-union


14-18% Traditional workforce
Contract Tier 4 - 5
Manufacturer

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Income Statement

Consolidated Income Statement IHFY 2011 FY2010 FY2009 FY2008 FY2007


($ in Millions) (9/30/10)

Revenues 14.5 28.3 38.1 31.8 19.1

Gross Profit 4.9 6.1 12.1 8.3 3.5

Gross Margin 33.7% 21.5%** 31.8% 26.2% 18.6%

Operating Expenses 2.1 3.3 2.5 1.9 2.1

Operating Income 2.8 2.8 9.7 6.4 1.4

Operating Margin 19.0% 9.7%** 25.4% 20.1% 7.6%

Net Income 1.7 2.0 5.9 3.5 0.3

Net Margin 11.5% 7.2% 15.6% 11.1% 1.5%

Wtd. Avg. Basic Shares 14.2 14.2 13.6 10.9 10.0

EPS - Diluted $0.08 $0.10 $0.23 $0.12 $0.03

** The $8.9M inventory transfer to GT Solar in August 2009 included


raw material, shifting avg. gross margin lower for YTD FY 2010

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Balance Sheet Highlights

($ in Millions) Sept. 30, 2010 March 31, 2010


Cash 9.2 8.8
Current Assets 17.2 15.2
Total Assets 21.9 19.4
Current Liabilities 2.6 1.9
Total Liabilities 8.2 7.3
Total Stockholders’ Equity 13.8 12.1

Long-Term Debt Sept. 30, 2010


Term Note 1,428,571
Mortgage Loan
3,058,119
(obligation of WM Realty)
Capex/Capital Lease 1,887,044

Total Long-Term Debt 6,373,734

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Capitalization Structure as of 9/30/10

Share Type Number of Shares

Common Shares Outstanding: 14,283,346

Common Stock issuable upon conversion of series A


12,629,489
preferred stock at $0.218:

Shares issuable upon exercise of stock options or other


equity based incentives pursuant to the Company’s 2006 2,008,327
long-term incentive plan:

Total: 28,921,162

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Peer/Competitor Comparison

TechPrecision Amtech Systems GT Solar Precision Castparts


(TTM at 9/30/10 unless otherwise Corporation
noted) OTC:BB: TPCS Nasdaq: ASYS Nasdaq: SOLR NYSE:PCP
Revenue $24.45 M $120.02 M $732.69 M $5.78 B
Revenue/Share $1.72 $13.30 $5.05 $40.80
Gross Margin 24.9% 35.6% 29.9% 31.0%
Operating Margin 15.3% 13.8% 28.6% 24.72%
Net Income $2.52 M $9.56 M $129.3 M $944.80 M
Quarterly Revenue Growth (Y/Y) -44.6% 289.2% 120.1% 16.8%
Stock Price at 9/30/10 $0.87 $17.96 $8.37 $127.35
Market Cap at 9/30/10 $12.4 M $163.1M $1.26 B $18.16 B
EBITDA $4.13 M $18.23 M $216.65 M $1.59 B
EV/EBITDA 3.60x 6.82x 3.74x 12.32x

Price (11/26/2010): $1.24


Market Capitalization (common & preferred): $35.8M
Wtd. Avg. Basic Shares as of 9/30/2010: 14.2M*
*As of 11/30/10 TechPrecision had 12.6 million shares of common stock reserved for issuance upon conversion
of series A convertible preferred stock. There were 2.0 million shares issuable upon exercise of stock options or
other equity-based incentives pursuant to the Company’s 2006 long-term incentive plan. Fully diluted share count
at 11/30/2010 was 28.9 million.
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Management Team

• James Molinaro – CEO, TechPrecision Corporation


– Named CEO in July 2010
– Over 26 years of global experience in solar, defense and semiconductor equipment
production
– Previously President and CEO of Akrion Systems
– Served as VP of Sales, Service, and Marketing for Akrion
– President for Submicron Systems and earlier served as its VP of Engineering
• Richard Fitzgerald – CFO, TechPrecision Corporation
– CFO of TechPrecision since April 2009
– Previously VP and CFO of Nucleonics and Director, Corporate Development at
Exelon and PECO Energy Company
• Extensive experience in roll-ups, financing, integrating merged organizations
• William N. Hogenauer - Director of Business Development
– Joined TechPrecision in November, 2009
– Previously founded and was CEO of WebTCD
– Began his career as a Sales Engineer at InterTest

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Investment Opportunity

• C-suite and business development function have been revamped and


significantly upgraded

• Stock price of $1.24 at 11/26/10 and 10.3x P/E (ttm)


• Backlog of $31M at 11/1/2010 provides forward visibility
• Multiple embedded options to fuel a return to 2008/2009 sales and margin
levels, momentum evident in 1H FY 2011
– Still River Systems: pending FDA clearance
– GT Solar: return of the PV market
– Nuclear renaissance: Rebuild and new build
– Alternative energy/clean tech growth opportunities

• Wuxi Critical Mechanical Components Co., Ltd. subsidiary opened


– Addresses growing demand for solar and nuclear energy manufacturing in Asia
– Significant revenue growth potential for Fiscal 2012 and beyond

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Contact Information

TechPrecision Corp. Hayden IR


Richard Fitzgerald, CFO Brett Maas
Bella Drive Phone: 646-536-7331
Westminster, MA 01473 Email: brett@haydenir.com
Tel: (610) 246-2116 or
Fitzgeraldr@techprecision.com Cameron Donahue
www.techprecision.com Phone: 651-653-1854
Email: cameron@haydenir.com

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