New Delivery Systems from Dow Corning

1. NewDelivery Systems fromDow Corning December 2005

2. Desired result: 3 take-aways • Why Dow Corning is committed to providing you with the broadest range of delivery system technologies • Our existing technologies, our resources to customize solutions that meet your formulating needs exactly, and where we’ll continue to invest • The strength of our in-house experts and alliance partners

3. Agenda • Strategic insight into the Life Sciences business • Deliver the Difference — the vision for our delivery systems technologies portfolio • Technical overview • Phospholipid-based Vesicles • Silicone Vesicles • Micro-encapsulation • Silicone Elastomer Blends

4. Strategic Insight • Our Life Science’s vision is to improve the quality of life in the markets we serve • Our mission is to be your ideal supplier of performance enhancing materials — including those that deliver active ingredients • Our objective is to collect and offer various, diverse delivery technologies

5. Strategic Insight • Our strategy is highly integrated and includes but is not limited to: - Relying on our 60+ year heritage designing and formulating functional specialty chemicals - Exploiting our global supply chain that reliably delivers the highest quality material - Leveraging our strong customer relationships to collaborate and innovate custom solutions-

6. The Benefit to You • “One stop” shopping — materials, technical support, formulating expertise, application knowledge, EHS documentation, analytical services, performance testing capabilities, customized solutions on a global scale • A broader choice of ingredients that — in combination with silicones — promote synergistic performance benefits

7. Next steps Developing a delivery systems technologies portfolio is a journey, not a destination!

8. Deliver the Difference

9. Why Delivery Systems • The market’s growing at a double digit rate • Consumers demand convenience (multifunctionality), healthful/youthful appearance (well being), natural ingredients (vitamins, botanicals) and environmental protection (antioxidants, UV/sun blocks) — active ingredients can meet these expectations • Delivery technologies are formulation specific — few suppliers are consolidating multiple technologies under one offering

10. Alliances and Partnerships • Silicone-based technologies have some intrinsic limitations and cannot meet all of the key market needs by themselves • In order to fulfill our vision of a global, world-class delivery systems provider we sought leading edge technology partners to fill the gap • Lipo Chemicals, Inc. and Lipo Technologies, Inc. and Dow Corning have formed an alliance to offer micro-encapsulation technologies as part of our offering

11. Delivery Systems Portfolio

12. Introducing Four Delivery Technologies • Phospholipid-based Vesicles • Silicone Vesicles • Micro- and milli- encapsulation Systems • Silicone Elastomer Blends

13. Phospholipid-based Vesicles Dow Corning® Liposomes

14. Dow Corning® Liposomes • Combined effect of a high level of phosphatidylcholine and high level of dilinoleoylphosphatidylcholine • Soy bean lecithin = GMO free • Unilamellar liposomes • Physical and chemical stability • Penetration of the upper layers of skin • Innovative testing capabilities to prove vitamin stability, efficacy and penetration (ESR)

15. Dow Corning® Liposomes Penetrating Liposome System • Penetrating line designed to supply cosmetic actives in the upper layers of the skin Non-Penetrating Liposome System • Non-Penetrating line designed to supply cosmetic actives on the surface of the skin • Penetration is prevented by the use of a sterically hindered triglyceride Commercially available loaded with a variety of cosmetic actives with the possibility for customization

16. Dow Corning® Silicone Vesicles

17. Dow Corning® Silicone Vesicles • Silicone vesicles are hollow particles with water at the exterior and interior, and a bilayer that contains the particle. • Capable of encapsulating both lipophilic and hydrophilic actives. • New “assembly-required” vesicles developed with attractive morphologies.

18. Dow Corning® Silicone Vesicles Two silicone vesicles are currently under development based on: • rake SPE • (AB)n SPE Actives encapsulated: • Vitamins (vitamin A palmitate, vitamin C) • Sunscreens, and • Fragrances. Stability of Si vesicle encapsulated actives demonstrated. Encapsulation of customer’s specific actives possible.

19. Micro- and Milli- encapsulation Systems

20. Lipocapsules® • Limitations • Water insoluble IP only • Soften at pH 8.5 and higher • Permeable to solvents • Residue after rupture • No dry over 500 microns • Filling requirements • Advantages • Separation of Incompatibles • Target or Sustained Release • Prevent Oxidation • Improve Flow Characteristics • Convert Liquids to Solids • Improved Aesthetics • Supplied slurry, cake or dry powder • Gelatin Lipocapsules® • Animal Derived (Gelatin) • CMC – Gum Arabic-Carrgeenan • 10-3000 microns average diameter • 50 – 97% Internal phase • PMU Lipocapsules® • Synthetic Derived • Polyoxymethylene Urea • Methoxymethyl Methylol Melamine • 5 –100 microns average diameter • 50-80% Internal Phase • Limitations • Water insoluble IP only • Soften at pH 8.5 and higher • Fragile at sizes > 100 microns • Residue after rupture • Filling requirements

21. Lipospheres® • Agar • Polysaccharide • 500 – 400 microns • 25% Internal Phase • Alginate • Calcium Alginate • 500-4000 microns • 25% Internal Phase Gellan • Heteropolysaccharide • 500-4000 microns • 25% Internal Phase • Advantages • Vegetable derived • Water soluble IP capable • Water insoluble IP capable • No residue after rupture • Target or sustained release • Improved aesthetics • Limitations • Solvent permeable • Slurry only • Reversible reaction • Fillingrequirements • Limitations • Solvent permeable • Slurry only • Filling requirements • Limitations • Solvent permeable • Slurry only • Filling requirements

22. Lipobead™ Vegetable Derived • Mannitol • Cellulose • HPMC • 700 & 1500 microns Average • 5% Internal Phase • Animal Derived • Lactose • Cellulose • HPMC • 700 & 1500 microns Average • 5% Internal Phase • Advantages • Water soluble IP capable • Water insoluble IP capable • Supplied as dry prills • Extended hydration time • No residual after rupture • Target or sustained release • Improved aesthetics Limitations Solvent Permeable

23. Lipoparticle™ Vegetable Derived • Cellulose • Cyclodextrins • 5-500 Microns Average • 30% Internal Phase • Synthetic • Nylon 12 • 5-500 Microns Average • 30% Internal Phase • Advantages • Water soluble IP capable • Water insoluble IP capable • Convert liquids to solids • Substrate for overcoat • Substrate for granulation • Target or sustained release • Improve flow characteristics Limitations Solvent Permeable Dispersion considerations

24. Dow Corning® Silicone Elastomer Blends

25. Cosmetic Fluids Si elastomer Si elastomer Actives Actives Dow Corning® Silicone Elastomer Blends • A crosslinked silicone elastomer gel particle swollen in various cosmetic fluids. • The unique fluid-in-gel particle offers a very desirable smooth, silky skin feel. • Soft gel particles of 20 – 80 um size. • Two options to incorporate actives: • Post-loading: • Pre-loading:

26. Dow Corning® Silicone Elastomer Blends • Actives investigated: vitamins, fragrances and sunscreens. • Stability in both pre- and post-loaded SEBs and cosmetic formulations. • Excellent skin sensory feel retained in active-entrapped SEBs.

27. For More Information Please Contactlifesciences@dowcorning.com