PERFORMANCE APPAREL MARKET

Performance apparel is an expanding market1. •  Over 100 Million Americans exercise on a regular basis.

•  As of 2008 the performance apparel industry was a $6.4 billion industry.

•  Expected to grow 19% to $7.6 billion by 2014.

•  Biggest area of growth is technical fabrics.

(in billions)

PERFORMANCE APPAREL MARKET

Performance apparel is an expanding market1.

1. Data obtained from Thomson Reuters Corporation

HEALTH & WELLNESS INDUSTRY

•  The Health & Wellness Industry has increased in sales from $59 billion in 2003 to over $112 billion in 20082.

HEALTH & WELLNESS INDUSTRY

•  Declining health and increased availability is driving people to these products.

•  The economic downturn is causing people to be more discerning, only purchasing proven products.

•  The market is continuing to grow.

2. Data obtained from Natural Marketing Institute

HISTORY OF TECHNICAL FABRICS

•  Gore-Tex® (1978) – First waterproof/breathable fabric. Works by allowing water vapors to exit through tiny holes that are too small for water droplets to get back in.

•  Compression (1983) – Decreases muscle vibrations to reduce fatigue.

•  Coolmax® (1986) – Wicking capabilities and better breathability than natural fibers.

•  Antimicrobial (2004) – Technique from early 20th century is now becoming popular in consumer products. Uses Trevira Bioactive (silver ions attach to bacteria to destroy them).

Responsive textiles are textiles that interact with the environment.

HISTORY OF TECHNICAL FABRICS

None of these performance fibers are a responsive textile.

CELLIANT™ - The World’s First Responsive Textile

Celliant™ is a specially formulated technology that can be integrated into any type of textile. The result is a material that reduces pain, improves circulation, and enhances oxygen levels in the body.

Polyester based yarn Embedded into the structure of fibers Versatile for a wide range of products Efficacy proven through five clinical studies

CELLIANT™ - The World’s First Responsive Textile

Celliant™ is a specially formulated technology that can be

Hologenix, the maker of Celliant™ fiber is the only company to have performed studies proving the efficacy of its product.

THE EFFECTS OF CELLIANT™

In clinical testing, Celliant™ has been proven to reduce pain, increase blood circulation, increase oxygen levels, help balance body temperature and improve quality of sleep.

● Initial clinical testing indicates improved sleep quality and a reduction in nocturnal awakenings, 2009.

● Clinically proven to increase oxygen, 2009.

● Clinically proven to reduce pain, 2008; published Spring, 2009.

● Clinically proven to increase oxygen and help balance body temperature, 2007.

● Clinically proven to increase blood circulation and oxygen levels in the body, 2003.

THE EFFECTS OF CELLIANT™

In clinical testing, Celliant™ has been proven to reduce pain,

Hologenix, the maker of Celliant™ fiber is the only company to have performed peer-reviewed, published, clinical studies proving

the efficacy of its product.

2003 – OXYGEN INCREASE IN DIABETIC SUBJECTS 2003 – OXYGEN INCREASE IN DIABETIC SUBJECTS

•  Study of 20 diabetic subjects wearing Celliant™ gloves and stockings vs. placebo garments.

•  Within one hour subjects showed on average a 13.6% improvement in their hands with 100% Celliant™ gloves and an 8% improvement in their feet with 50% Celliant™ stockings.

•  Performed by Lawrence A. Lavery, DPM, MPH, an associate professor in the department of orthopedic surgery and rehabilitation at Loyola University Medical Center and Hines Veterans Administration Hospital in Chicago.

•  Tested TCPO2 (how much oxygen reaches the surface of the skin) in the hands and feet.

2005 – OXYGEN INCREASE IN HEALTHY SUBJECTS 2005 – OXYGEN INCREASE IN HEALTHY SUBJECTS

•  Performed by Graham M. McClue, Ph. D., a researcher with Hyperbaric Treatment & Training Services Ltd., an independent research facility in Houston, Texas.

•  Tested TCPO2 in the hands and feet.

•  Double blind study of 13 healthy subjects wearing Celliant™ gloves and stockings vs. placebo garments.

•  Within one hour subjects showed an increase of oxygen levels by 10% to 24%.

2008 - DIABETIC PAIN STUDY 2008 - DIABETIC PAIN STUDY •  Performed by Dr. Ian Gordon, M.D., Ph.D. at University of California Irvine Medical Center,

Director of the University of California Wound Clinic, Associate Clinical Professor of Surgery at the University of California, Irvine and Chief of the Vascular Surgery Section at the VA Long Beach Healthcare System.

•  Single-center, prospective, double-blind, randomized trial approved by the institutional review board with test subject receiving either Celliant™ or control socks.

•  55 Subjects filled out McGill Short Form Pain Surveys—an industry accepted scale for measuring pain relief that is used in FDA trials for pain relief medications—for two consecutive weeks to measure pain.

•  Participants received a 2.7x greater reduction in pain for participants wearing products enhanced with Celliant™ versus those wearing placebo products.

2008 – OXYGENATION STUDY

•  Ian Gordon, M.D., Ph.D. F.A.C.S., Clinical Professor of Surgery, UC Irvine.

2008 – OXYGENATION STUDY

• Ian Gordon, M.D., Ph.D. F.A.C.S., Clinical Professor of Surgery, UC Irvine.

•  24 healthy volunteers wore both Celliant™ and placebo garments for 90 minutes.

•  Subjects were tested for skin temperature, grip strength and TCPO2 levels.

•  Overall 8% increase in oxygen levels and 12% increase in grip strength.

(Minutes)

TCP

O2

CELLIANT™ IMPROVES SLEEP

Sleep efficiency with a placebo  Significant nocturnal awakenings  67% Sleep efficiency

Sleep efficiency with Celliant™

• Zero nocturnal awakenings • 95% Sleep efficiency

CELLIANT™ IMPROVES SLEEP

WHAT TYPES OF NATURAL ENERGY ARE AVAILABLE? AVAILABLE?

Water?

WHAT TYPES OF NATURAL ENERGY ARE AVAILABLE?

Wind?

WHAT TYPES OF NATURAL ENERGY ARE AVAILABLE?

Solar?

WHAT ABOUT THE BODY? - SCIENCE OF LIGHT

The body is the best renewable energy source! Thermographic cameras show infrared emissions.

  Certain minerals are photocatalysts which means that they are “optically responsive” absorbing light at the surface, redirecting it, and sending it back to the body.

These minerals can be infused into fibers.

WHAT ABOUT THE BODY? - SCIENCE OF LIGHT

The body is the best renewable energy source!

CELLIANT™ MATERIALS

•  Although the formula for Celliant™ is a trade secret, the following three minerals are used in our technology:

CELLIANT™ MATERIALS

Although the formula for Celliant™ is a trade secret, the

Titanium Dioxide – Absorbs available energy.

Silicon Dioxide (Silica) – Acts as a reflector of energy and as an anti-microbial.

Aluminum Oxide (Alumina) – Enhances strength of reflectivity.

CELLIANT™ PROPERTIES

● Specially formulated, worldwide patent-protected, mineral compound.

● Micron-sized particles infused into fiber during extrusion.

● A permanent part of the fiber, lasting the life cycle of the material.

CELLIANT™ PROPERTIES

● Specially formulated, worldwide patent-protected, mineral compound.

2,000x magnification of a cross section of Celliant™ Fibers

2,000x magnification of a single horizontal Celliant™ Fiber

SCIENCE OF LIGHT - EARLY HISTORY

Light therapy or photobiology has been used for centuries •  Light therapy dates back to early civilization when the Ancient Greeks first

recognized that exposure to sun light could have health benefits.

SCIENCE OF LIGHT - EARLY HISTORY

Solar energy is any radiant light or heat energy emitted by the sun"

•  Energy from the sun is proven to be beneficial. •  It is the bodies main source of Vitamin D which plays an essential role in many major organ systems. •  Increases the flow of calcium into the bloodstream.

SCIENCE OF LIGHT - 20TH CENTURY USE

Other forms of light are also proven to benefit the body. # Infants with neonatal jaundice have been prescribed treatments of blue light since the 1930s.

Both of these processes are FDA approved.

# In the 1960’s red light was proven to increase production of new collagen which makes healthier looking skin. Red light pens are now commonly sold as an anti-wrinkle therapy.

SCIENCE OF LIGHT - 20TH CENTURY USE

Nobel Prize   Niels Finsen won the Nobel Prize for Medicine in 1903 for his studies on using light therapy to treat tuberculosis and small pox.

# In 1999 NASA proved that light can be used to stimulate cell growth and speed wound healing.

SCIENCE OF LIGHT - THE FUTURE

Energy fabrics are responsive textiles that have been infused with any optically responsive minerals.

Companies such as Phiten and the Greg Norman Collection have recognized the market for these fabrics.

However, none have done the clinical studies to prove their products are effective.

SCIENCE OF LIGHT - THE FUTURE

Energy fabrics are responsive textiles that have been

“COMPETITOR” - FAR-INFRARED FABRICS

Current far-infrared materials in the marketplace:

“COMPETITOR” - FAR-INFRARED FABRICS

Current far-infrared materials in the marketplace:

Shinin Silica Corp.

Shang Yung Co.

Kodenshi

Revoreno

These companies have not provided any independent clinical testing.

Claims:

• Improves blood circulation and 18.9% increase

• Thermal skin temperature increasing: +0.77

• Moisture transferring and quick-drying

• Antibacterial and deodorization

• Increases body energy -44 to 99%

HOW DOES CELLIANT™ WORK?

● Both sunlight and light emitted by the body are absorbed by the Celliant™ fibers.

● The Celliant™ fibers act as a catalyst and reflect this energy back to the body.

● The body then absorbs this previously unavailable, recycled, energy.

● This new energy source triggers the biological functions of the body to increase blood flow and oxygen levels.

● Celliant™ is also proven to relieve pain and balance body temperature.

HOW DOES CELLIANT™ WORK?

™

CELLIANT™ FIBERS CELLIANT™ FIBERS

Celliant fibers as observed in transmitted (visible) light.

Under broad-band ultra violet excitation, these fibers exhibit a blue fluorescence.

CONSUMER BENEFITS

Performance: Celliant™ provides additional oxygen to the muscles allowing more efficient energy production.

● Enhances performance. ● Less muscle fatigue during activity. ● Increased stamina and strength.

Recovery: Celliant™ speeds the natural healing process reducing soreness and muscle fatigue from exercise.

● Increased blood circulation stimulates healing process. ● Speeds recovery time. ● Allows for more active lifestyle.

CONSUMER BENEFITS

Performance: Celliant™ provides additional oxygen to the muscles allowing more

Wellness: Celliant™ causes better blood circulation and body temperature regulation.

● Reduces pain. ● Improves quality of sleep. ● Increases overall comfort.

THE EFFECTS OF CELLIANT™ THE EFFECTS OF CELLIANT™

THE EFFECTS OF CELLIANT™ THE EFFECTS OF CELLIANT™

CELLIANT™ TESTING RESULTS CELLIANT TESTING RESULTS TC

PO2

TCPO

2

Grip

Stre

ngth

12% Average Increase 32% Average Increase 8% Average Increase

2

Grip

Stre

ngth

Grip

Stre

ngth

WHO CAN BENEFIT FROM CELLIANT™?

Active People ● Improves performance ● Less fatigue

People with Pain ● Reduces pain ● Improves overall comfort

People with High Stress ● Improves quality of sleep ● Faster recovery to accomplish more exercise

WHO CAN BENEFIT FROM CELLIANT™?

Active People

WHAT RESEARCHERS ARE SAYING ABOUT CELLIANT™

“It’s important to note that properly controlled clinical trials have shown a positive effect from wearing clothing enhanced with Celliant™. Frankly, as a skeptic, I was surprised at the results and am excited to conduct additional trials.” ● Dr. Ian Gordon, MD, PhD Director of the University of California Wound Clinic, Associate Clinical Professor of Surgery at the University of California, Irvine and Chief of the Vascular Surgery Section at the VA Long Beach Healthcare System

“There are a number of benefits that will come out of wearing this product. In the athlete, it will increase oxygen metabolism rates, therefore enhancing performance. It will also aid recovery of people that don’t exercise very often. Most often you exercise and become stiff. This will help to eliminate the stiffness. In the diabetic population, it will increase oxygen at the surface or oxygen to wounds and eventually the wounds will heel on a quicker basis.” ● Dr. Graham McClue, PhD Research Director, Hyperbaric Treatment & Training Center, Houston, Texas

“This study shows a significant increase in blood flow in the skin. This improvement might be enough to take patients from being symptomatic to asymptomatic, which for patients that are taking 10 or 15 drugs, to be able to wear a garment with no negative side effects is a tremendous advantage.” ● Dr. Lawrence A. Lavery, DPM, MPH Associate Professor, Department of Orthopedic Surgery and Rehabilitation, Loyola University Medical Center & Hines Veterans Administration Hospital, Chicago, Illinois

“The first two participants reported a subjective improvement of their sleep with the use of the active garment mattress cover… In addition, objective sleep recordings in both subjects showed improved sleep efficiency (more sleep while in bed), a decreased wake after sleep onset time (less total night time awake after initial sleep onset), and an overall reduced number of nocturnal awakenings” ● Dr. Marcel Hungs, MD, PhD Assistant Clinical Professor, Department of Neurology, University of California, Irvine Director, Center for Sleep Medicine

WHAT RESEARCHERS ARE SAYING ABOUT CELLIANT™

“It’s important to note that properly controlled clinical trials have shown a positive effect from wearing clothing enhanced with Celliant™. Frankly, as a skeptic, I was surprised at the results and am excited to conduct additional trials.”

WHAT CONSUMERS ARE SAYING ABOUT CELLIANT™

"I was having a lot of sleeping problems due to breaking my back in a motocross accident about 5 years ago. A friend suggested I try a mattress pad with Celliant™. Ever since, I almost sleep too well. I am a firm believer in this product and recommend it to everyone!" ● Donny Emler Jr. aka “LIL D”, FMF Racing

“I have been a type II diabetic for 15 years and recently neuropathy has been affecting my legs and feet. I tried a number of different support hose and have not been satisfied with their performance. In many cases they restricted the blood flow and ended up increasing the pain. Your socks have been fantastic. I seem to get the support that I need without the restrictions. They not only help with the numbness but provide the support that I need to assist me in walking." ● Frank S. Chase, Nashua, New Hampshire

“ During the 2005 Toronto Marathon, I wore Celliant™ running socks and had zero problems with my feet... As it happened, I ended up seeing my doctor a few days later for my annual physical. He was amazed that my feet didn't show any signs of blistering, swelling, bruising etc.” ● Andrew Wells, Real Estate Broker and Marathon Runner, Toronto, Canada

“In "Terminator 3: Rise of the Machines," I play the most powerful machine yet, opposite Arnold Schwarzenegger. Powerful machines may be impervious to pain, but people aren't, so I wore Celliant™ socks throughout a difficult and grueling shooting schedule, and it helped me recover quickly from exertion.” ● Kristanna Loken, Actress

WHAT CONSUMERS ARE SAYING ABOUT CELLIANT™

"I was having a lot of sleeping problems due to breaking my back in a motocross accident about 5 years ago. A friend suggested I try a

CELLIANT™

•  Safe

•  Proven

•  Revolutionary

Seth Casden (888) 721-1545 seth.casden@celliant.com www.celliant.com

CELLIANT™

Safe