Evozyme Presentation

Road Building and Repair is a Large, Growing and Greening Market

• Billions are spent globally each year on road building and maintenance

• Developed country road networks have deteriorated and will require significant investments over the next several years

• Much of the developing world’s infrastructure remains to be built• Factor prices for road building materials continue to rise• As the world economy stalls, government leaders and developers

will look to cost saving technologies as a primary remedy with green attributes being an important consideration

Road builders will continue to feel the pain of shrinking margins

Governments will continue to need more roads for less money

Evozyme Provides Compelling Cost Savings and Other Product Benefits

• Saves 20 – 40% of the cost of building a new road

• Cuts lifetime road maintenance costs by upwards of 50%

• Reduces construction time, labor costs and project complexity

• Significantly ‘greens’ a road’s environmental profile

• Low shipping and transportation costs

• Is easy to use, requires no special training and is already approved in a number of US states and foreign countries

• Benefits can be shared by multiple parties in the supply chain

• Strengthens subgrades by as much as 200%, allowing for a significant reduction in aggregate base rock – and associated costs – required to achieve strength targets

• Is applied directly to local subgrade soil using existing construction processes

• Cures rapidly for little interruption to construction process

• Can be explained to and understood by a construction crew in a matter of minutes

Evozyme®® is a patent-pending, biomass-based liquid

formula that hardens local soil into a sustainable road sub-base

SUBGRADESUBGRADE

BASE COURSE

ASPHALT COURSE

BASE COURSE

ASPHALT COURSE

SUBGRADE w/Evozyme®® SUBGRADE w/Evozyme

®®

BASE COURSE

100% 100%

• Evozyme’ core technology is a proprietary formulation of enzymes, surfactants and other organic components, manufactured in California

• First multi-enzyme product on the market

• Only enzyme product proven to work by the US Army Corps of Engineers

Evozyme is sold in liquid concentrate form and can be inexpensively and quickly shipped to construction sites around the world in under one week

Per mile, Evozyme can save up to 40% of the cost of a new road

Building Element Cost per Mile With Evozyme

Excavation and Preparation

$200,000 $150,000

Granular Sub-base $120,000 $0 – 40,000

Aggregate Base Course $400,000 $150 – 300,000

Asphalt for Pavement $200,000 $200,000

Miscellaneous $80,000 $80,000

Evozyme $20,000 – 30,000

Total Cost per Mile $1,000,000 $600 – $800,000

Savings with Evozyme 20 – 40%

Representative per Mile Cost Analysis

Using Evozyme dramatically reduces carbon footprint of road projects

• Evozyme itself is completely non-toxic, non-hazardous and bio-degradable• ‘Green’ roads movement is just beginning, with new orgs. and funding forthcoming

10,000+ tons of mined rock

500+ truck trips 800+ gallons of gas

Per mile…

And roads are just the beginning of the opportunity…• Evozyme has a number of additional applications in the construction space

– Subgrade modification – pot hole repair – pipe bed and cut back fill – parking lots and driveways – railway embankments – slopes – dust abatement

– Lime treatment replacement for soil stabilization. Evozyme routinely beats lime treatment in lab tests, is far more eco-friendly and is 3 – 5 times less expensive than lime (see appendix).

Evozyme® beats alternative soil stabilization products on performance, cost and environmental impact

Evozyme® Single

EnzymesPolymer

sLime

Proven Effective ✔ ✔ ✔

Long Lasting ✔ ✔ ✔

Broad Applicability

✔ ✔

Cost Effective ✔ ✔

Easy to Transport

✔ ✔ ✔

Environmentally Sound

✔ ✔

The business is gaining a great deal of momentum and traction after several years of operational milestones in an advanced R&D stage

• Over 30 demonstration roads built on 5 continents, none of which have needed any maintenance or repair in over 10 years

• Highly successful lab tests around the world with multiple soil types– US Army Corps of Engineers, Minn DOT, Tx DOT, several private labs

• Approved for use in multiple countries and US states– New York, California, Utah, Washington– Israel, Thailand, Venezuela, Brazil, Costa Rica, Kenya, Malawi, Former USSR

• Currently in use with first commercial customers:– National Grid / NYC DOT– Lafarge (Colorado mine)

–Venezuela (Agricultural road network)

“We have tested a number of enzyme products in the past and this is the first enzyme product tested that has substantially increased soil strength” - US Army Corps of Engineers

Market information – details and sources

• Much of the developing world’s infrastructure remains to be builtBy 2018, it is expected that the stock of paved roads should rise by 60% in China and Vietnam, 30% in India, Indonesia, and Bangladesh. Growth in Mexico, Russia, Pakistan, and Brazil will vary between 15% and 25%. In dollar terms, these figures translate to an expected $900bn spent on road construction outside of the United States.-Goldman Sachs, Global Economics Paper No: 166, Building The World: Mapping Infrastructure Demand.

• Developed country road networks have deteriorated and will require significant investments over the next several yearsThe American Society of Civil Engineers (ASCE) estimated in January, 2009, that the US$2.2trn needs to be spent over the next five years just to bring American infrastructure up to par. The ASCE estimates that US roads alone require $186bn a year in substantial improvements.

-Business Monitor International, United States Infrastructure Report Q2 2009.

Market information – details and sources

• Factor prices for road building continue to riseARTBA estimates road construction costs will continue their 6 – 8% annual growth rate. Tennessee Department of Transportation’s Bituminous Index is up 236% since 01/2000.

• Population growth will put further strain on road systemsSpecifically, the majority of the world’s largest cities will be located in today’s emerging markets. By 2050, it is projected that an extra 3.1bn people will live in urban areas, of which 1.8bn will be in Asia and 900m in Africa. Besides putting a heavier toll on existing infrastructure, the growing demand will drive global prices for materials such as cement and asphalt. -Business Monitor International, China Infrastructure Report Q2 2009

• Environmental sensitivity will continue to be a differentiatorWitness emergence of ‘green’ preferences in US govt. contracting.“As early as 2003, 78% of Europe’s fund managers and analysis predicted that sound management of environmental risks would increase a company’s valuation over the long term.”- Deloitte - European Powers of Construction 2008

• Carbon footprint of a mile of new road can be astronomical“As a result, it is estimated that the most energy was consumed in the manufacturing stage of construction materials, with consumption of 1,525.8 tons of oil equivalent per functional unit (~1 km and four lanes of highway).”

-Kwangho Park et al., “Quantitative Assessment of Environmental Impacts on Life Cycle of Highways,” Journal of Construction Engineering and Management, Vol 129, January/February 2003

Evozyme has excelled in numerous Independent Lab TestsEvozyme has excelled in numerous Independent Lab Tests

Laboratory Soil Type Improvement

US Army Corps of Eng. Clay 41%

University of Minnesota / DOT Multiple 76%

MT Labs, USA Sand / Silt 76%

H & L Engineering, USA Texas Clay 73%

NOVA Geotechnical, USA Clayey Sand 187%

Kasetsart Univ, Thailand Clay 180%

Venezuela – Fuerte Tiuna Sandy Loam 181%

“We have tested a number of enzyme products in the past and this is the first enzyme product tested that has substantially increased soil strength” - US Army Corps of Engineers

…and a number of successful Field Tests

Location Use Years w/o Repair

Morocco – multiple Mining Roads 7

China – multiple Local Village Access 4

Kazakhstan – multiple

Demonstration and Testing

4

Thailand – multiple Demonstration and Testing

2

Romania Demonstration and Testing

4

Turkey – multiple Demonstration and Testing

2

Malaysia Demonstration and Testing

4

Venezuela – multiple Demonstration, Access <1

EvozymeEvozyme® vs. competitorsA third party independent laboratory in the United States conducted a test comparing Evozyme and the competitors . The testing was completed by the University of Minnesota’s Graduate

Civil Engineering Department and the Department of Transportation for the State of Minnesota. The test used two different types of soils.

Evozyme®

Outperforms the competitors in MinnDOT Testing

Evozyme proved 38-115% stronger than the competitors

Evozyme® worked on both soils tested

the competitors e worked on only one soil type

Researchers questioned whether or not the competitors even contained

enzymes that work

Competitors – Acrylic Polymer Products• There are several producers (well over 100 internationally) of acrylic and/or inorganic polymer products

for soil stabilization

• Many of these producers have healthy distribution channels with industrial, construction and military customers

• Most of these products advertise as being “eco-friendly” because they are bio-degradable and not terribly carbon intensive

• The biggest issue with polymers is that they are only useful in the short-term, anywhere from a few weeks to 12, even 18, months– This makes polymers unfit for long-term road construction, but very fit for short-term stabilization

products

• We estimate the annual market size for polymer based soil stabilization to be approximately $50 million (VERIFY) in the US and approximately $200 million internationally

• On price and performance, Evozyme costs about the same as most polymer products but greatly outlasts them over time. In addition, polymers ship fully diluted, incurring high shipping costs and making them cumbersome to use

• Conclusion: We believe we can take at least 10 – 20% of US market share and 5% international market share from polymers over the next 5 years

Key Partnerships and Progress – USA

Key Partnerships and Progress – International

Former USSR

South America

Africa

China

Southeast Asia