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EP Purification, Inc . Champaign IL USA

ENERGY EFFICIENT, EVIRONMENTALLY FRIENDLY MICROCHANNEL PLASMA OZONE REACTORS FOR COMMERCIAL LAUNDRIES. EP Purification, Inc . Champaign IL USA. PRIMARY MARKETS FOR OZONE DISINFECTION AND TREATMENT (CAGR 7%).

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EP Purification, Inc . Champaign IL USA

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  1. ENERGY EFFICIENT, EVIRONMENTALLY FRIENDLY MICROCHANNEL PLASMA OZONE REACTORS FOR COMMERCIAL LAUNDRIES EP Purification, Inc. Champaign IL USA

  2. PRIMARY MARKETS FOR OZONE DISINFECTION AND TREATMENT (CAGR 7%) • DISINFECTION OF DRINKING WATER ($180M*)(Los Angeles, Washington, D.C. (Virginia), Europe …) • AIR AND GAS TREATMENT (Sanitization and • Deodorizing) ($146M*) • INDUSTRIAL PROCESSING (Bottlers, Food and Agricultural Product Preservation, Biomedical) ($115M*) • WASTEWATER TREATMENT ($220M*) • (Disinfection, Deodorization, Decoloration, Destruction of Organic Pollutants) • COMMERCIAL AND RESIDENTIAL LAUNDRY (Estimated $3.1M) * Source “Ozone News”, Vol. 38 No. 4

  3. OZONE: EFFECTIVENESS Kills or Inactivates 99.99% in few seconds to minutes Adenovirus Norovirus Legionella pneumophila MRSA O2 Hepatitis A O2 Ozone • Strongest Oxidant • Dissociation of Organic Compounds (Cleaning) • Self-destruction, No byproducts or wastes Clostridium difficile(C. diff) • Disinfect and inactivate pathogens effectively in cold water

  4. FOCUS ON COMMERCIAL LAUNDRIES:ENERGY SAVINGS WITH OZONE • LAUNDERING WITH OZONE HAS BEEN APPROVED BY CDC • AND CMS FOR NURSING HOMES, HOTELS, PRISONS, ETC. • EXAMPLE OF 400 ROOM HOTEL (MAJOR INTERNATIONAL CHAIN) IN INDIANAPOLIS • SAVING WITH OZONE RELATIVE TO LAUNDERING • WITH HOT WATER* - Reduction in Heating Water: 252,000 kWh/year - 25% Reduction in Rinsing Time : 120,000 kWh/year • - 64% Decrease in Chemical (Detergent, Softners) Usage • - 30 - 45 % Reduction in Fresh Water Usage : > 3.9 M gallons/year • 62,000 HOTELS IN U.S., 5,700 AHA REGISTERED HOSPITALS, 80 MILLION HOMES (~ 145.4 Metric Tons of Carbon Footprint per year**) (~ 70 Tons of Carbon Footprint per year) http://www.unitedutilities.com/water-and-your-carbon-footprint (~ 8.7 Tons of Carbon Footprint per year) *Data provided by TMCS, Inc. **Lenzen, M., “Life cycle energy and greenhouse gas emissions of nuclear energy: A review,” Energy Conversion and Management 49, 2178-2199 (2008).

  5. MICROCHANNEL REACTOR FABRICATED IN ALUMINUM SHEETS: MICROPLASMA TECHNOLOGY GROUND Al PLASMA Al2O3 Al AC VOLTAGE

  6. EXISTING OZONE TECHNOLOGY VS. NEW TECHNOLOGY Two Microplasma Single Chips (6 g/hr production) Conventional Technology (6 g/hr ozone production)

  7. COMMERCIAL LAUNDRY UNIT: FIELD TEST Partnering with TMCS, Inc.for initial market penetration

  8. MICROPLASMA OZONE MODULE: 10 grams/ hour model • Slim • Light Weight • Fully Recyclable • Can treat the water at 20 gallons/minute • Simple Installation and maintenance • Automatic lock-ins • Robust A system configuration

  9. SCALABILITY: STACKING MODULES 3 g/hour × 5 15 g/hour (3 g/hour × 5) × 4 modules 60 g/hour (3 g/hour × 5) × # of modules On-Demand Ozone Production 3 g/hour

  10. INTELLECUTUAL PROPERTY: MICROPLASMA TECHNOLOGY • More than 50 US and International patents on Microplasma Technology atthe University of Illinois (Including 6 directly related patents to this technology) • Exclusive license from the University on water and air purification applications • Grant awarded $ 0.7 M total • from EPA and Air Force • Additional EPA SBIR Phase II ($ 0.4 M) pending “ New Air and Water Purification Technology for Point-of-Use Applications” “ Development and Commercialization of Efficient Water Purification Tool”

  11. LAUNDRY BY OXIDATION MARKET SIZE Nursing Homes Hospitals Hotels Residential 5,700 AHA registered hospitals, multiple potential installations per site 18,700 potential installations in US (> 50 bed) Profit driven, 62,000 sites with multiple potential installations per site 80,000,000 privately owned homes in US year round occupied TMCS expects to purchase 400 units in Q3 and Q4 2014 from EPP.

  12. TARGET PRODUCT PRICING • Comparable units (6-10 grams ozone per hour) sell for $250 to $800. • Based on this, we hope to have an initial price of $350 per unit dropping to $200 by year 4. • Parts cost is ~$55 per unit, primarily the case and machined parts (low volume). • Power supply cost is $70 per unit (low volume). • We expect significant cost reductions with volume and with improved manufacturing techniques over the first two years. • MOU has been signed with TMCS, Inc. for 50% payment in advance with orders.

  13. Financial Projections

  14. TEAM Dr. Cy Herring – CEO Broad entrepreneurial and scientific background with start-ups 20 years experience in micro-discharge technology More than 10 years experience at clean energy sector Ph.D. Electrical Engineering Dr. J. Gary Eden – Co-Founder, President Distinguished scholar in Micro Plasma technology Professor at the University of Illinois Over 250 publications, 40 awarded patents Ph.D. Electrical EngineeringDr. Sung-Jin Park – Co-Founder, CTO Co-inventor of Micro Plasma technology at the University of Illinois Adjunct Professor at the University of Illinois 95 publications, 35 awarded patents Ph.D. Chemistry

  15. THANK YOU

  16. BACK-UPS

  17. ENERGY CONSUMPTION IN US BUILDINGS “Research and development roadmap for water heating technologies” Navigant Consulting Inc. Report to DOE, 2011

  18. HOT WATER CONSUMPTION PER OCCUPANT American Water Works Association

  19. FABRICATION PROCESS MICROPOWDERABLATION ROLLER MICROCHANNELS PDMS STAMP UV CURABLE INK SUBSTRATE

  20. SALES MODEL* * Partnering with TMCS Inc.

  21. PATH TO PRODUCTION • Aluminum parts will be patterned and anodized out-of-house • Power supplies will be purchased fully built and tested, the design is complete. • Other machined parts/housings will be made at local machine shops. • EPP will need staff to assemble ozone generator and internal plumbing, 2 units/day/person will require 2 additional assembly personnel for anticipated need in Q3 and Q4 of 2014. • An additional 600 sq. ft. space needed for assembly operations in Q3 and Q4, likely rented from TMCS.

  22. PRODUCT READINESS • Alpha Testing underway at EPP laboratories, TMCS laundry test facility, and some preliminary testing on site at a nursing home already a client of TMCS. • Product lifetime testing underway at EPP laboratories. • Outsourcing of most of the components is feasible, final assembly would take place at EPP. • Beta prototype packaging underway for field testing • Self-diagnostics and remote monitoring systems under development, low cost solutions are available.

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