PRESENTATION ON NON-CHEMICAL WATER TREATMENT

1. PRESENTATION ONNON-CHEMICAL WATER TREATMENT

2. What is the Scale Free System? History of Scale Free Systems, Inc. Established 15 years ago in St. Louis, Missouri National and International provider of water treatment • Industry leading, patented technology • “Green" alternative to water treatment that prevents and reverses scale formation, halts corrosion and prevents microbiological growth for all heat transfer systems without the use of chemicals • Best non-chemical water treatment system available on the market today utilizing “system neutralization” technology. • Reduces water usage, energy consumption and operating costs while eliminating chemicals from your facility • Unlike all other non-chemical systems, SFS does NOT attempt to change or alter water chemistry in any way, rather SFS treats and protects your equipment

3. Threats to Your Bottom Line Scale, Bacteria & Corrosion will Destroy Your Equipment…leading to costly capital budget expenditures for equipment replacement. Scale is the biggest problem associated with the efficient and cost-effective operation of your heat exchange equipment. Studies have shown that as little as an ⅛” of scale formation on heat transfer surfaces can lead to a 10% increase in energy consumption.

4. Protect Your Bottom Line SFS neutralizes the pipes and equipment shell to the same polarity as the ions in the water. Engineered application pulls the dynamic electrical energy out of the water, through a control panel that regulates and controls the energy flow and ultimately out to an independent grounding system. Reverse Scale Formation SFS utilizesCopper-Silver Ionization for microbial control; a dispersive process that introduces stable, long-lived, positively charged copper and silver ions into the water system to destroy biofilms and slimes that can harbor harmful bacteria. Safe ionic concentration levels are maintained by regular monitoring of the water in the system, offering additional long-term residual protection. Prevent Bacteria Growth SFS eliminates the electrical bridge that starts the harmful corrosion process. By neutralizing electrical activity, chemical decomposition necessary to produce free oxygen and free hydrogen in solution (agents responsible for pitting and corrosion) is eliminated. Halt Corrosion

5. Scale Protection by System Neutralization

6. SFS Controllers & WebAdvantage Internet Communications • WebAdvantage Internet Communications • Key Features: • 128 Bit Encryption Security • Change Settings Remotely • No Software to Load • Back-Up Server Assurance • One Page Summary • Email Alarm Notification • Constant Connection • Server Stored History • Custom Reporting • Graphical Interface • SFS controllers are the heart of the system • Monitor and regulate the electrical activity in the water. • Continuously modulates the output across the equipment to match the energy in the water and sustain a neutral environment. • Maximize your facility water usage and lower utility costs • Give remote system alerts with the addition of the WebAdvantage monitoring feature.

7. Microbiological Control COPPER-SILVER IONIZATIONis approved by the US EPA (as per its Safe Water Drinking Act) for biological treatment of domestic water supplies against infections of Legionella, E. Coli, Salmonella and a host of other microbes as well. It is a dispersive process that introduces long-lived, stable, positively charged copper and silver ions into the water system. 1- The copper-silver ionization process is provoked by running DC voltage between the copper and silver electrodes submerged in water, thereby releasing the positively charged Cu and Ag ions into the water. 2- Having water flow between the electrodes carries away the metallic ions into the water system. 3- Once in the water reservoir, the positively charged copper and silver ions bind themselves to and attack negatively charged microorganisms such as Legionella bacteria and commence the biocide process. 4- Upon contact with these microorganisms, the copper-silver ions attack in a multiphase process to disrupt the overall cell metabolism causing cellular lysis (death). Safe ionic concentration levels are maintained by monitoring the water system and thus offer additional long-term residual protection.

8. How Does Cu-Ag Ionization Compare? SFS EXCEEDS Microbiological Standards Higher CFU = more bacteria The Other Guys

9. Reuse Blowdown Water and Save! SFS Biological Control is compliant with EPA standards for drinking water quality set forth in the Safe Drinking Water Act (SDWA). All blowdown water exiting the system is compliant with the Federal Water Pollution Control Act. Reuse or Recycle the Blowdown Water for Irrigation or other On-Site Use (Graywater) • Sanitary Sewer • Water w/ Chemicals &Raw Sewage • Discharge Must be Treated • Costly Industrial Surcharge Rates • Storm Sewer • Rain Runoff &SFS Blowdown Water • Discharge Water Safe • No Discharge Fees

10. Sustainability: SFS GreenSolution CREATING CHEMICAL-FREE SOLUTIONS FOR A BETTER ENVIRONMENT BECAUSE WE ALL LIVE DOWNSTREAM • Immediately reduce the environmental footprint of a facility by eliminating toxic water treatment chemicals. • Installing SFS presents a compelling opportunity to generate operational savings while treating water in an environmentally friendly manner. PLUS - Use of SFS will also earn points in the LEED system. • Chemical-free discharge water can be reused for other purposes on site instead of being sent to a treatment facility. • The cycles of concentration will increase inside the system, saving water and reducing costs. • SFS provides a distinct environmental advantage, while mitigating the risk of accidental chemical spills, chronic exposure and bioaccumulation of persistent chemicals in the food chain.

11. Essential Cooling Tower Treatment • Good Tower Treatment STARTS with: • Knowledge of makeup water chemistry and operating conditions. • A treatment system designed to meet scale, biological and corrosion control. • Good conductivity control. • Consistent monitoring and maintenance of the system. • Good Tower Treatment ENDS with: • Water and energy savings. • Lower facility operating and maintenance costs. • Clean condenser tubes and good heat transfer. • No corrosion of equipment surfaces and piping. • Reduced environmental footprint by eliminating chemicals – Reuse Blowdown!

12. Why Should You Consider Non-Chemical Water Treatment? Reduce Energy Costs Conserve Water Protect the Environment Increase Safety • Cooling system operation represents 12-18% of an industrial building’s operating costs. • Poor water treatment reduces operating efficiency by as much as 25%. • SFS reduces water consumption by increasing the cycles of concentration through the system over what a chemical treatment program can achieve. • More cycles means less water consumed! • Environmental standards groups such as LEED are encouraging facility owners to implement changes that positively impact the environment while protecting the bottom-line. • Facility owners and managers are increasingly aware of the safety and liability risks/costs associated with the storage and handling of chemicals on-site.

13. Benefits of Using SFS • Prevents Scale and Corrosion • Prevents Microbiological Growth • Increases Operational Efficiency • Reduction in Water Costs • Reduction in Energy Costs • Extends the Life of Your Equipment • Eliminates Sewer Charges for Discharge • Sustainability and Green Advantages • No Chemical Storage, Handling or Disposal Ever Again!!!

14. Applications • Installation • The SFS Team will provide complete installation with drawings or supervise the system installation by your staff • SFS will provide system start and test • SFS will provide service training for your personnel on the system operation and routine maintenance • Lifetime warranty on all SFS equipment • Evaporative Condensers • Cooling Towers • Chillers • Boilers • Heat Exchangers • Hot Water Heaters

15. Markets Served

16. Case Study - Project Profile • Results: • SFS performance far exceeded expectations of BJSPH administration and facilities staff. • Immediate reduction of environmental footprint by eliminating toxic water treatment chemicals. • SFS controlled scale, corrosion and microbiological contamination. • 12% Energy Reduction 9.8% Water Usage Reduction • Lowered operating and maintenance costs. • Barnes-Jewish St. Peters Hospital (BJSPH) • a major St. Louis, Missouri Hospital • Acute-care hospital with 175 beds and 500+ physicians • Provides full inpatient services and emergency care • BJSPH sought out innovative green technologies for their campus to reduce impacts on the environment while generating operational savings. • SFS Application: • SFS was installed on heat exchange equipment in April 2011 - 500 ton evaporative condenser and chiller. The SFS/BJSPH partnership created a dedicated team approach to providing a non-chemical solution for water treatment.

17. Your Bottom Line is Saving Money • Return on Investment – The Payback Summary • Typical payback period of 18 months or less • Typical water cost savings of 8-25% • Typical energy savings of 3-18% • Savings on sewer discharge fees • Eliminate all costs associated with chemicals • Eliminate environmental fees and licenses • Let us do a Payback Analysis for you!

18. Questions? Need More Information? • Scale Free Systems • 325 Sun Valley Circle • Fenton, MO 63026 • www.scalefreeintl.com • Bob Meeh, President • (314) 581-5222 • Bob Hanneken, Vice-President • (314) 287-1401 Regional Sales Associates Florida Wisconsin Ronnie Taylor Scott Abel (305) 735-1454 (262) 305-5353 Thank You for Your Time!!