Gypsum Recycling - The Successful Scandinavian Solution Henrik Lund-Nielsen, MBA, Chairman

1. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Gypsum Recycling - The Successful Scandinavian Solution Henrik Lund-Nielsen, MBA, Chairman Gypsum Recycling International A/S Leopardvej 2, 7700 Thisted, Denmark +45 70 22 17 30, gr@gipsrecycling.dk

2. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Instead Gypsum waste should be recycled No more landfilling!

3. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Content of presentation • The key to success in Gypsum/Plasterboard Recycling • Why Gypsum/plasterboard waste should be recycled ? • About Gypsum Recycling International A/S • The unique recycling system, successfully implemented in Scandinavia • Lessons from Denmark, from the first full- scale gypsum recycling system in Europe • Activities in other European countries • Consequences for the partner and the plasterboard industry

4. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The key to success in Gypsum/Plasterboard Recycling Cost of waste collection and transportation Cost of waste reprocessing

5. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The key to success in Gypsum/Plasterboard Recycling • In recycling collection is the name of the game; transport costs is by far the most important cost and without effective systems and concepts to reduce the transport cost no commercial recycling system can be established • Therefore a recycling unit is not enough to secure commercial viable gypsum recycling systems - more is needed • For commercial viable recycling a complete system is needed to be successful: - Specially developed containers for easy filling and removal - A logistic system capable of assuring an effective collection, handling and invoicing of the waste owners - A Mobile Recycling Unit to lower transport costs by servicing more recycling plants, and capable of handling new construction waste as well as demolition waste - Customers that can benefit directly from the recycled materials

6. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Why Gypsum/Plasterboard waste Should be Recycled ? Because • Otherwise app. 5 million tons of plasterboard waste will be landfilled in the US/Canada • Recycling is the only solution that will preserve natural resources • Recycling will help the Gypsum/plasterboard manufacturers to obtain the cheapest raw materials of high quality • Recycling will improve the environmental image of the Gypsum/plasterboard industry • Recycling will help remove the legislative pressure on the manufacturers; “cradle to grave” responsibility • Recycling will help remove pressure towards banning of landfilling of gypsum/plasterboard waste • Because it can be done, now !

7. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Why Gypsum/Plasterboard waste should be recycled ? Because the industry can gain from gypsum recycling: • GRI is the world leader in commercial gypsum recycling systems and has proven as the first that a beneficial gypsum recycling system based on separate collection can be established • We offer to help solve the Gypsum industry’s recycling problem (and possible future duty to take care of own waste) in a proven and beneficial manner - at no cost and - with no investment required for the industry - and with lower raw materials prices for the industry • GRI hereby help the Gypsum industry to move ahead of the demands from politicians and environmentalists and remove the possible legislative pressure • A co-operation with GRI is a win-win situation

8. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution About Gypsum Recycling International A/S • Started in 2001 by Karsten Rasmussen, the company’s present managing director and CEO • Karsten Rasmussen has 25 years experience from the demolition industry and with recycling of concrete, asphalt and other materials • Karsten Rasmussen is also the owner and director of NKR, the largest demolition company in Scandinavia. More than 1 mio. tons of construction waste is being recycled yearly • Henrik Lund-Nielsen, M. Sc. Econ (DK) and MBA (USA), joined the company in 2003 as chairman of the board and partner, to help internationalise the company. • Henrik Lund-Nielsen has 12 years of international management experience from Managing Director positions within the two highly respectable international companies; VELUX Group and Skandinavisk Tobacco Group

9. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia 4 important characteristics to remember: A)GRI makes recycling on commercial terms=> We know how to establish competitive systems B)GRI has a background from the demolition industry => We can handle all types of gypsum/plasterboard waste C)Low transport cost is “the name of the game” when establishing commercial recycling systems => Our system and concept is focussed on exactly that D) GRI has vowed loyalty towards the gypsum industry => We will not seek customers outside the industry

10. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia The 4 main components of the system: A)Containers: Gypsum waste/materials are deposited in specially developed containers B)Logistics: The materials are collected and brought to central warehouses C)Recycling Unit: The recycling unit is at the warehouse transforming the materials into Gypsum powder D)Contract with Plasterboard manufacturers: The Gypsum powder is brought to the Gypsum/plaster board manufacturers who can use it directly in the production

11. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia Re. A) Containers: • Specially designed by GRI to allow for easy filling and easy removal of the waste/gypsum materials; equipped with lids, the top lid being hydraulic assisted • Contract manufactured for GRI; sold or leased to the customers • The 40 cubic yards containers contain 7-8 tons

12. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia Re. B) Logistics system: • Containers are at new building, reconstruction and demolition sites, at waste transfer stations + municipal waste collection sites etc. • Containers are unloaded regularly by external transport companies • The collected waste/gypsum materials are weighed on the truck, and this information is used to invoice the customer

13. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia Re. B) Logistics system, continued: • The recycling unit is mobile and can easily be moved around from warehouse to warehouse, allowing an optimal location of the warehouses to minimise transportation cost • Dismantling/setting up of the unit can be done in a few hours • The warehouses should be located close to a gypsum board plant

14. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia Re. C) Recycling unit: • Specially designed and developed by GRI • Based on proprietary technology/patents • Produces recycable gypsum powder and paper separately. The paper can be incinerated or used for other purposes • Capacity: Up to almost 100.000 tons p.a.

15. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia Re. C) Recycling unit, continued: • Driven by own diesel generator • Equipped with two containers at the end, each containing app. 15 tons and should be changed continuously every 45 minutes. • Separates all impurities/foreign objects away from the gypsum core through magnetic sorting (twice) and sorting according to size • Fully automated with automatic controls and sensors • Dimensions: L*W*H = 80*10*13 feet. Weight 52 tons

16. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia 3- The recycling unit - continued: Capable of handling new construction waste and demolition waste: • Acceptable: - Gypsum waste based on FGD/DSG or rock gypsum raw materials - Virgin plasterboard cut-offs - Gypsum board underlayers/dunnage - Complete boards or broken parts - Gypsum ceilings, floors, walls etc. - The gypsum waste may contain nails and screws - Wallpaper, glass tissue and other wall coverings on the gypsum boards • Non-acceptable: - Plastics and foils - Insulation materials (glass wool/stone wool/Rockwool) - Steel rails and bars - Wood - Other impurities

17. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia Re. D) Contract with Plasterboard Manufacturers: • GRI makes contract with gypsum board manu- facturers for the delivery of recycled gypsum powder for a price per tons, which is less the cost of virgin raw materials • GRI guarantees the quality of the supplied powder • This assures the gypsum board manufacturers of a stable, low cost supply of high quality materials • No investment required at the gypsum board manufacturing plants to utilise recycled gypsum powder • Up to 25% of raw materials in one batch can be recycled powder • The powder can be mixed with FGD/DSG as well as rock gypsum

18. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia Summary: How does the system from GRI differ from what other suppliers can offer? • It is a commercially driven system, that works because all parties are gaining advantages by participating in it • It is a complete system with all the necessary elements; especially for assuring low transport cost • It is based on the concept of multiple smaller warehouses and a mobile recycling unit to optimise locations and transportation costs

19. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution The unique recycling system, successfully implemented in Scandinavia 2 minutes Video

21. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Lessons from Denmark, from the first full-scale gypsum recycling programme in Europe • Plasterboard waste is NOT banned from landfills in Denmark ! • Started in the fall of 2001 with collection activities. • 250 containers out in the market: 50% of all public waste transfer stations are now covered with GRI containers and increasing fast • Other main suppliers of gypsum waste include construction and demolition companies • Presently more than 55% of all gypsum/plasterboard waste in Denmark is being recycled by GRI and increasing fast. • Danogips (Knauf) and Gyproc (BPB) receive and use the recycled gypsum powder for production of new virgin boards • Warehouses in Hobro close to Danogips and in Kalundborg close to Gyproc

22. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Hobro (Knauf) Lessons from Denmark, from the first full-scale gypsum recycling programme in Europe Norway Sweden Kalundborg (BPB) Copenhagen 70 miles

23. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Lessons from Denmark: Satisfied customers Proven concept No impurities No investments Professional Quality Satisfaction

24. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Lessons from Denmark: Satisfied customers Like Danogips Min. 25% mix

25. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Lessons from Denmark, from the first full-scale gypsum recycling programme in Europe Collected tons in Denmark, more than 55% of all available waste now Actual per month Actual/expected per year

26. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Activities in other European Countries • The system is established with collection in all 3 Scandinavian countries • The system will be expanded to cover 3 additional European countries in the fall • All systems have been established commercially - nowhere in Europe is landfilling banned ! • “Small” countries are covered by using a recycling unit from one of the other countries • “Large” countries are having their own dedicated recycling unit • Everywhere the system is based on the principle of multiple plants/warehouses • GRI is cooperating with local partners in each European country

27. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Consequences for the gypsum/plasterboard industry • The gypsum industry can leave recycling of gypsum materials to competent people, who are familiar with waste collection and recycling on commercial terms • A complete system will be established by GRI in cooperation with a local partner • There are no costsnor investments required for the industry to have a recycling programme established in their area • The industry will absorb the recycled materials, and by doing so the industry will take advantage of the following: • Improved environmental profile and image • An additional stable source of high quality materials • Recycled materials at a price below that of virgin materials • A co-operation with Gypsum Recycling International is a win-win situation for the gypsum/plasterboard industry

28. ERCCO Gypsum Recycling International A/SGypsum Recycling - The Successful Scandinavian Solution Consequences for the potential system partner • The partner will get access to a proven system based on proprietary technology with excellent profit potential • The partner have no development costs and can rely on all the experience gained by GRI • GRI will assure the contract with the plasterboard plants for the powder • GRI will runningly support the partner to maximise the profit • The GRI concept limits the competition the partner will be exposed to • There are no fixed fees, fixed income or other profits to GRI from the transactions. GRI is only paid a fixed royalty fee per tons processed with the system, which is dependant on the volume and thereby the success of the partner. If the partner is successful so is GRI • A co-operation with Gypsum Recycling International is a win-win situation