Omega Protein (OME) 8-K Regulation FD Disclosure

SHAREHOLDER PRESENTATION

May 17, 2011

1

Exhibit 99.1

Omega Protein, Inc.

Reedville, VA

2

Menhaden

Rich in History and Omega-3s

3

Operational Locations

4

Reedville Manufacturing Plants

Fish Processing Plant

Health & Science Center (HSc)

5

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

6

Human Resources Initiatives

Screening,

Recruiting,

Development

Programs

Wonderlic

Personnel

Test

On-the-job Training

Developing talent from

within (16

th

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

7

Reaching out

to external

talent

Captain’s Score Card

8

Fish Catch

0

10000

20000

30000

40000

50000

60000

SETS

0

50

100

150

200

250

300

350

400

450

MAJOR REPAIRS

0

50000

100000

150000

200000

250000

“Oyster Bayou”

Vessel Score Card

9

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)

10

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)

11

North Carolina Fishing Model Map

Beaufort

City Dock

Reedville

Plant

12

Process Improvement Initiatives

(Global)

13

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)

14

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

BOATRACS

15

Operations Objectives

16

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

Monty Deihl

General Manager

Fish Processing Plant

17

Reedville Background

18

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

Reedville Background

Reedville Plant in early 1950s

19

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

20

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

21

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

‘Margaret’

circa

1958,

photo

17

year

old

Henry

Deihl on right and 16 year old brother James

Deihl standing looking in net

(another son of Capt Irvin Deihl, Sr)

21

year

old

Irvin

‘Bucky’

Deihl,

Jr.,

Mate,

on

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

is on the cover of Omega’s video series CD

22

Fish Processing Plant

Number of employees

275 (Marine & Shore Side)

Fish Processing Capacity

Up to 600+ million fish

23

Reedville Fish Processing Plant

24

Process Stack Removal

25

26

Manufacturing Process Flow Diagram

27

Manufacturing Process Logic Controls

(PLC)

28

Schools of Menhaden

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

“Net Sets”

Map

Reedville

45

Jane Crowther

Senior Director

Health & Science Center

46

Refined Omega-3 Oils

47

48

HSc Certifications

49

Refined Oil Process Flow

50

Oil Processing Step 1

Silica Treatment

Silica Treatment

Silica is added to crude oil under heat to remove

proteinaceous, mucilagenous materials.

51

Oil Processing Step 2

Fractionation

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

52

Oil Processing Step 3

Refining

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.

53

Oil Processing Step 4

Bleaching

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.

54

Oil Processing Step 5

Deodorization

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.

55

Oil Processing Step 6

Stabilization

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

56

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

Danny is much

better

better

57

Before

Omega-3

Imperial College of Medicine/Dyspraxia Foundation

After

Omega-3

Omega-3 & Humans

58

Questions?

59