ENERGY EFFICIENT, EVIRONMENTALLY FRIENDLY MICROCHNNEL PLASMA OZONE REACTORS FOR COMMERCIAL LAUNDRIES

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

2. Water heating represented 9.1% (or 3.7 quads) of the total energy used by all buildings in the United States.* Which is equivalent with the energy of 1084 billion kW-hours or 29,625 billion gallons of Gasoline The fourth largest energy end-use in the U.S. building stock. 34% of Hot Water (32 Gallons)is being used by Clothes Washing in each household per day(use).** * “Research and development roadmap for water heating technologies” Navigant Consulting Inc. Report to DOE, 2011 ** American Water Works Association

3. Energy Saving is not mandatory to Health Concerns “If a facility chooses to process laundry using a hot water temperature environment, the temperature maintained for 25 minutes should be at or above 160 degrees Fahrenheit (71oC)” “The CMS, in collaboration with the CDC, has also determined that ozone cleaning systems are acceptable methods of processing laundry” Clarification of Interpretive Guidance at F Tag 441 -Laundry and Infection Control, January, 2013 Centers for Medicare & Medicaid Services (CMS) Centers for Disease Control and Prevention (CDC) DEPARTMENT OF HEALTH & HUMAN SERVICES

4. 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 Clostridium difficile(C. diff) • Disinfect and inactivate pathogens effectively in cold water

5. APPLICATIONS AND MARKET Estimated at $3.1M per year potential in US (Commercial) 2014 estimate at $146M * 2014 estimate at $115M * Industrial Water Air and Gas Treatment Laundry Systems Total: $674 M/year CAGR ~7% for largest markets** OZONE Food Preservation and Sterilization Wastewater Treatment Water Purification 2014 estimate at $220M * New emerging market, size unknown, estimate start at $10M 2014 estimate at $180M* * Source “Ozone News”, Vol. 38 No. 4 * * Source BBC Research Market Forecast, 2012

6. ECONOMY IN COMMERCIAL LAUNDRY: OZONE Vs. HOT WATER • Energy savings as high as 90 % in washing, and 20 % in rinsing • Reduction of water usage by 30 – 45 % • Reduction of detergent uses down to 10 - 20 %

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

8. EXISTING OZONE TECHNOLOGY VS. NEW TECHNOLOGY COMMERCIAL LAUNDRY MODELS Corona Discharge Reactor (6 g/hr ozone production) Two Microplasma Single Chips (6 g/hr production)

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

10. 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

11. MASSIVELY-PARALLEL PROCESSING: STACKING MODULE 2 g/hour × 5 10 g/hour (2 g/hour × 5) × 4 modules 40 g/hour (2 g/hour × 5) × # of modules On-Demand Ozone Production 2 g/hour

12. INTELLECUTUAL PROPERTIES: MICROPLASMA TECHNOLOGY • Holds more than 50 US and International patents on Microplasma Technology at 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 until 2016 from EPA, Air Force • Additional EPA SBIR Phase II ($ 0.4 M) on pending for review “ New Air and Water Purification Technology for Point-of-Use Applications” “ Development and Commercialization of Efficient Water Purification Tool”

13. 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 at the time of order.

14. SALES MODEL* * Partnering with TMCS Inc.

15. 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.

16. PATH TO PRODUCTION • 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.

17. FINANCIAL PROJECTIONS Cash Flow Projections for 2014-2018 Laundry + Water Treatment Laundry Only

18. 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

19. BACK-UPS

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

21. HOT WATER CONSUMPTION PER OCCUPANT American Water Works Association