FINALLY ! A ZERO WATER URINAL THAT EXCEEDS EXPECTATIONS

1. FINALLY ! A ZERO WATER URINAL THAT EXCEEDS EXPECTATIONS

2. ZeroFlush Urinals Training Session • Introduction • Marketing Strategies • The ZeroFlush Urinal • Competition • Site Visits • Selling Strategies

3. Population Growth There are currently more than six billion people in the world, and this number continues to grow every day. For centuries humans have used water to remove waste. Today urinals are one of the most problematic and costly fixtures in restrooms . One flush urinal uses an average of 150,000 liters of water per year. The potential savings created by Zero Water Urinals will have a very positive impact on our fresh water supply. The ZeroFlush Zero water Urinal System is The most advanced system of it’s kind in the market today.

4. Water is Precious • Male urine is about 96% Water. This being the case why do we use water to move water? • For many years water was plentiful and inexpensive. This is no longer the case. Water and Sewer rates continue to rise across the world. • Are we creatures of habit? While we dislike water urinals many dislike the thought of having no water while in reality water is the cause of most of the issues with water based urinals. • Water is one of our most precious resources. • Why waste it? • Time tested and proven technology. • Environmental, Ecological and Health benefits. • Reduced Maintenance and Easily Serviced. • The Bottom Line! SAVE $$$

5. Water is Precious Remarkable SavingsThe average swimming pool has 15,000 gallons of water.. Amazingly, one ZeroFlush urinal can save about 3 swimming pools worth of water in a single year. It also reduces greatly the amount of sewage treated. Saving our already heavily taxed municipal waste water infrastructure.

6. Marketing Strategies

7. Primary Objective • Install a very large number of urinals as quickly as feasible • Create very high brand awareness. • Build a “total system” around the product which is difficult to match • Protect consumable sales

8. Your Role and Responsibilities • Development, direction, implementation and management of the area sales and marketing strategies and tactical plans for ZeroFlush. • Development of new sales of all products in all market segments principally by direct calls on prospective end-users, conduct capability presentations to customers, develop formal proposals, monitor and manage pilot programs leading to a successful order.

9. New Construction –vs.- Retrofit • Sales Cycle • Determine Who You Need To Influence • Maintenance Staff • Energy Officers • Facilities Management • Architects • Engineers • Contractors • Water conservation agencies Develop Action Plan • Contact Info • Opportunity • Value Proposition • Hurdles Barriers • Action Plan/Schedule • Resources/Support

10. Identify Target Customers • Segment • Education • Arenas/Public Venues • Municipalities • Federal • Industrial (selected markets) • Retrofit $$$ • Immediate sales • Size • Elephant Hunting • Market • Code approval ? • Beach-head

11. U.S. Sales to Date Have Been Concentrated in a few of End User Segments Percent of Waterless Industry Sales

12. The Current Situation • Awareness of waterfree / waterless urinals exist and quickly gaining recognition. • Comprehension of zero water urinal benefits are limited and assumed not well known • Belief that zero water urinals really pay off on their promises assumed at low levels due to competitors cartridge costs. • Experienced and existing customers have mixed views and results due to poor competitors products. Potential for better results exist with ZeroFlush and are easily welcomed.

13. Creative Strategy • Key messages: • Save money • Conserve water • Improve restroom hygiene • Long life cycle • Quickest return on investment • Economics vs. conservation

14. Sustainable Building Measurement Criteria • U.S. Green Building Council (USGBC) LEED Rating System • In 1993, the USGBC was formed to provide leadership, integration and education related to environmental issues facing the building industry. • In 1994, the USGBC formed the Leadership in Energy and Environmental Design (LEED) Rating System. • LEED evaluates building performance from a whole building perspective over a building’s life cycle.

15. LEED Categories of Sustainable Building • Sustainable Sites • Water Efficiency • Energy and Atmosphere Design • Materials and Resources • Indoor Environmental Quality • Innovation and Design Process

16. Certification Process • Categories are based on points that are awarded for sustainable choices that are made as part of the development process. • LEED Certified 26-32 points • LEED Silver 33-38 points • LEED Gold 39-51 points • LEED Platinum 52+ points

17. Zero Water Urinals and LEEDtm WE Credit 2 - Innovative Wastewater Technologies Reduce the use of municipally provided potable water for building sewage conveyance by a minimum of 50%, OR, treat 100% of wastewater on site to tertiary standards. 50% reduction OR 100% treatment = 1 point WE Credit 3 - Water Use Reduction Employ strategies that in aggregate use 20% or 30% less water than the water use baseline calculated for the building (not including irrigation) after meeting Energy Policy Act of 1992 fixture performance requirements. 20% savings = 1 point 30% savings = 2 points

18. The ZeroFlush Urinal System provides both Environmental and Economic Benefits: • Significant Conservation of Water Supply • Substantial Cost Reduction for the Consumers • Reduction of Sewage The product “looks-like” and “works-like” a conventional urinal system, yet it provides a higher level of sanitation.Without the use of a single drop of water. The ZEROFLUSH SYSTEM main components are: • TRAP “Insert”; • SEALANT ”Odor Barrier” liquid; . • PERMANENT Drainhousing; . • Vitreous China Urinal Bowl .

19. Proprietary, Patented Design Made from Recyclable, Biodegradeable ABS Significantly Reduce Lime Scale Build-up and Residue When in Place in System Housing it Provides Airtight Seal and Makes the system valdal -Resistant Unique Design that “traps” Urine Providing Odor-free, Clean Bathroom Enviroment Average of 15,000 Uses before simple maintenance is requires Simple and Easy Installation and Replacement Using Integrated Puller-handle TRAP Insert

20. Enviromentally Safe; Non-Hazardous Content 100% Natural Vegetable Oil Based Formula A Specific Gravity Weight Less Than Water Seals Urine and Odor Within The trap housing Simple Biodegradable formula will keep pipes cleaner Barricade Odor Sealer Liquid

21. PERMANENT HOUSING • System-Specific Unique, Proprietary Design • Simple Pressure fit Locking Mechanism for Drain Insert • Largest Trap Housing of ANY Waterless Urinal • 1.4 Liter Capacity • Theft-Resistant • Solid ABS Compound Reduces Sediment Buildup Housing / Insert Cut Away

22. Touch-free, Hygienic Operation No Flush Mechanism or Devices Minimal Cleaning and Easy Maintenance Accommodates and Adapts to Existing Drain Outlets Available in Porcelain and Stainless Steel Vandalism-Resistant Various Models of Unique Designs Suitable for Different Preferences THE ZERO FLUSH URINALS

23. INSERT LIFE CYCLE For Example: A typical commercial facility that has 100 users per day per urinal would require 2 Insert Replacement Kits per year per urinal. • Provides sanitary operation for approximately 15,000 uses • Replaced only 2times per year on average, depending on the frequency of usage

24. COST ADVANTAGE OF THE ZEROFLUSH SYSTEM • No Water and Sewer Costs = Tremendous Operational Cost Advantage • No Flush Mechanisms means No Repair Costs = Substantial Maintenance Cost Savings • Average Purchase Price Payback Period is between 3 months to 2 years • Significant Water Conservation + Sewer Reduction = Environmentally Friendly Note: Comparison based on initial purchase price, estimated annual operational and maintenance costs. All costs are based on published retail price.

25. ECONOMIC BENEFITS ZeroFlush Urinal System Conventional Urinals Consumes between 70,000 to 150,000 liters of water per year Annual combined water and sewer costs of between 200 to 600 USD Annual operating costs equivalent to 50 to 100 percent of purchase price High-maintenance costs related to repair of mechanical parts ZERO water consumption Insert replacement kits at a fraction of water and sewer costs Average initial purchase cost payback period of 3 months to 2 years No breakable mechanical parts or components =low maintenance costs

26. Insert Replacement

27. Insert Installation Push Insert into place until you feel it pop in • Insert Replacement Kit Contents: • Insert • Puller Key • Odor Block liquid • Instruction sheet The urinal is now ready for use.

28. Functioning of trap

29. Cleaning • Remove all debris, • if present from the • surface of the urinal • Wipe surface • with a soft cloth • or non-abrasive • sponge until • clean • Spray urinal surface • lightly with a • non-degreaser • liquid cleaner

30. Life-Cycle Control At the end of the Inserts life-cycle the drain flow is reduced and this can be seen as the sealant liquid forms a blue puddle arround the drain holes.

31. Competitive Technologies • Current manufacturers of non water using urinals world wide have design deficiencies that have been greatly improved by our system. • ZeroFlush was designed from the very beginning for ease of maintenance and customer requirements.

32. COMPETITION Waterless Co.: Currently manufacturing a fiberglass-gel coat and Vitreous China bowls. Friction press-fit trap insert. Sealant depleted with every use. Operational cost are very difficult to gauge. Duravit: Solid porcelain bowl. No insert able trap. Add 100 milliliters of sealant per month, which is about 3 oz. Once a year remove deposits from the ceramic siphon by pouring water down the trap “under pressure”. Hearing from the market about first cost of $400-$600. 100 milliliters of sealant about $2-$3. Ernst System: This system is the one Waterless Co. basically copied and was originally in place in Germany for many years. It requires a service contract. Waterless Co. originally licensed it, but could not get it to code so they redesigned their own trap system. Swiss engineered. Uridan: A cartridge free design from Denmark. It has a trap that requires removal, cleaning and replacing. While this design on its surface looks promising in reality the maintenance and costs aspects are its downfall. Urimat system: The system works with a floated trap insert and solenoid that activates every time someone uses the urinal. It will likely never come to the U.S. because of certain code requirements. Swiss engineered. Falcon Waterfree/ Sloan/Waterless: Originally American Waterless Formed when two partners from Waterless went their separate ways. System has an ABS disposable cartridge trap that fits into a housing connected to the sewage. The cartridge trap is locked in position using a bayonet locking system. Operational costs are very high as cartridge life cycle is much less than advertised. Average cost of replacement cartridges are about $40US and can be higher elsewhere.

33. COMPETITION Sensor Operated Flush valves: Perception by many that they are a water conservation product. The opposite is fact, because when operating correctly they will flush every time vs. their manual counterparts which some say don’t get flushed 5%-10% of the time. First cost averaging about $200. Repair costs are expensive and maintenance can be intensive with many moving parts. Battery types require many changes. Batteries are hazardous waste. Schools and other public access facilities have had numerous vandalism problems with these valves. Half-gallon flush urinals and flush valve replacements: There are urinals bowls now being manufactured that use ½ gal. of water to flush. First cost very expensive at around $500. Becoming more widespread is the practice of retrofitting an older urinal bowl with a new ½ gal. Flush valve, or even taking an older flush valve and retrofitting it with a lower flow diaphragm to save water. This practice is commonplace, but has come under some scrutiny and discussion lately about its validity. ( See Greening Federal Facilities )

34. Competitive Advantages

35. Big Difference= Big Results

36. Largest Trap In Comparison other waterless systems require much more frequent maintenance and follow up. The traps are much smaller.

37. No Odors Other systems odor controlling sealant can be easily removed by a simple accidental dumping of a bucket of water. Due to the chemical nature of the sealants, competitive systems can also be affected by cleaning agents. If the sealant is removed, diluted or chemically changed odor WILL occur.

38. Easy Maintenance • Urinal Cleaning has never been easier. • Janitorial personnel will save time and effort. • NO MORE leaky valves,Hard water stains, urinal cakes, multiple wasteful flushing, Overflows, Floods orHarsh Chemicals!

39. Competitive Comparison

40. Competitive Comparison

41. Competitive Advantages Bottom Line • ZeroFlush • The Bottom line of our system is simplicity! Our system is very easy to maintain in comparison. Custodial ultimately holds the key to the success of the product. This key issue has been neglected by others and is our most important advantage. • Others • Systems, traps vary in size and function. Some require re-filling with chemical sealant other require periodic cleaning while others still require additional replacement. They are all labor intensive and not easy to maintain.

42. Selling Strategies

43. Selling Strategies Lead Generation Lead Follow-Up/Qualification The Presentation The Pilot Program Closing the Project

44. Lead Generation Sales Call Literature Telemarketer Direct Mail Cost Advertising Postcards Publicity Performance Seller $400/exposure Shows $185/exposure Telemarketer $10-20/exposure Literature $5-10/exposure Direct Mail $2-5/exposure Advertising $1-2/exposure Postcards <$1/exposure Publicity <$1/exposure Cost Performance of Customer Contact Options

45. The Planning Process • Define and prioritize markets and individuals: hunt where the ducks are • Define issues, opportunities and communications that can impact: set measurable objectives • Establish media strategy: how to reach them • Establish creative/messaging strategy: what to say to provoke desired action • Develop appropriate fulfillment/follow-up systems and processes: drive sales • Plan for measurement: “The route to success is always under construction.”

46. The Market ARCHITECT FIRMS PLUMBING CONTRACTORS PLUMBING WHOLESALERS/ FIXTURE SUPPLIERS JAN/SAN SUPPLIES JANITORIAL SERVICES ESCO’s GOVERNMENT BLDGS EDUCATION BLDGS HEALTH SERVICES BLDGS WHOLESALE / RETAIL TRADE BLDGS ENTERTAINMENT BLDGS MANUFACTURING BLDGS The Targets

47. World Wide Targets Dimension #1: Situational  Substitution (Retrofit)  Major renovation  New build Dimension #2: Organizational  End Users/Owners  Specifiers /Key Influencers

48. The Potential Retrofit Market is Many Times the Size of the New Construction Market 12,250,000 Number of Urinals Note: Based on American Standard 1990 study estimates 12 million (U.S. ONLY)

49. Creative Strategy • Key messages: • Save money • Conserve water • Improve rest room hygiene • Long life cycle • Quickest return on investment • Economics vs. conservation

50. Planning Checklist • Frequency to overcome market dynamics, memory curve, competitive noise, limits of communication tools. • 30% per year employee turnover • 90% forgetfulness in 30 days • 25% high readership of ads • 2% average direct mail response • Impact to cut through the clutter, build the right image • Mail = 75% readership • Ads = 25% readership • Editorial = 50-75% readership • Credibility • Compelling offers • Prompt, appropriate follow-up • Measurement: awareness, comprehension, relationship between inquiries and sales, understanding of why we win and why we lose