DELTA MUTUAL, INC.

THE MIDDLE EAST MARKET

Delta-Envirotech, Inc. - Environmental Remediation and Energy Recovery

In January 2004 our affiliate Delta-Envirotech initiated its activities in the Middle East by executing a strategic alliance agreement, with ZAFF International, Ltd., a technology company located in Saudi Arabia. Under the terms of the agreement, the Company will provide technology and technical support for energy recovery from hydrocarbon-contaminated water and soil. ZAFF will identify potential projects and be responsible for obtaining required permits and government approvals, as well as supplying the workforce.

The Company believes the size of the market for environmental remediation in this region to be approximately $8 billion. In the Gulf region, the waterways around the ports and shipping lanes remain polluted despite efforts at controlling discharge from feeder lines and vessels. There are some 1,500 kilometers of polluted shoreline containing millions of tons of contaminated sand.