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LEXTRAN LTD.

2. Overview. Lextran Ltd. is a private company formed in 1997 by Ludan Engineering Co. Ltd. one of Israel's leading engineering companies with 700 employees.Lextran has developed a unique and patented gas cleaning technology that removes pollutants from flue gasses emitted by power plants and other industrial installations. * Granted patents: EU

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LEXTRAN LTD.

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    1. 1 November 2, 2008 LEXTRAN LTD.

    2. 2 Overview Lextran Ltd. is a private company formed in 1997 by Ludan Engineering Co. Ltd. one of Israel’s leading engineering companies with 700 employees. Lextran has developed a unique and patented gas cleaning technology that removes pollutants from flue gasses emitted by power plants and other industrial installations. * Granted patents: EU # 1225967; US # 6,881,243 * Pending Hg patents: EU #10/596,400; USA # 04806657.5 * Registered Patent, for using of Reagent # 132347 Lextran has set its goals in reducing the air pollution by developing a cost effective installation for controlling the emissions of Nitrogen Oxides (NOx), Sulphur Oxides (SOx), Mercury (Hg) and other heavy metals.

    3. 3 Lextran Structure

    4. 4 The Business opportunity The reduction of the air pollution from power plants are a subject of great importance. Nitrogen Oxides (NOx), Sulphur Oxides (SOx), Mercury (Hg) and other heavy metals emitted by burning fuel, are an ecological burden of the first degree. Most of the governments and the environmental enforcing bodies have set strict standards to prevent dangerous pollutants’ discharge to the atmosphere. Lextran patented processes are cost effective and user friendly compare to any existing conventional solutions

    5. 5 Electricity Generated by Fuel 1980-2030

    6. 6 Air Pollution – Lethal Legacy In the US, several hundred older, coal-burning power plants across the nation are still operating without updated or no pollution controls. Pollution from these plants pose severe threats to the public health and the environment: Asthma attacks & emergency room visits - More than 6 millions asthma attacks. Premature mortality - 40,000 premature deaths every year. Loss of Aquatic and forest ecosystems - The largest source of the nitrogen and sulfur pollution that causes the acid rain. Human development and neurological damage - Coal-burning plants are the largest domestic industrial known source of mercury.

    7. 7 Lextran Technology The Lextran DeSOx + DeNOx + DeHg technology is a unique, patented 3 in 1 gas cleaning technology using a wet scrubber & employing the Lextran liquid catalyst in a water emulsion, to treat SOx, NOx and Mercury. These 3 major pollutants are purged in one wet scrubber. The Lextran process is a single step, simultaneous multi pollutant removal approach. The chemistry is complex and involves mass transfer between gas and two liquid phases and a set of chemical reactions. The Lextran process meets or substantially exceeds all current regulatory requirements for coal fired power plants: • Almost complete removal of SOx • Up to 70% removal of NOx • Almost complete removal of Mercury It is a very simple installation with only a minimum of equipment and only liquid reagents, and it requires a relatively small footprint.

    8. 8 Process Description Utilization of the Lextran chemistry is achieved using the following steps: Absorption of SO2 and N2O3 in the Lextran-water emulsion in a conventional gas-liquid contacting “absorption tower”. Oxidation of the Lextran-oxides complex in “oxidation tank” at the bottom of the absorber, using excess of oxygen from the flue gas. Removing of the water dissolved salt from the system by separating the aqueous phase from the Lextran phase, through a constant bleed from the circulation stream across the scrubber into the “decanter”. The bleed stream into the “decanter” passes a filter to remove accumulated particulate matter. Neutralization of the acids using basic compounds such as 25% NH4OH to form Ammonium Nitrate and Ammonium Sulphate salts which can be used as a fertilizer.

    9. 9 Schematic Process Diagram

    10. 10 Process Comparison

    11. 11 Lextran Performance - indicative

    12. 12 The Market Segments The Lextran process has applicability in five (5) major market segments: • Electric power plants burning coal Electric power plants burning heavy fuel oil • Diesel power plants • Industries: steel manufacturing, oil refining, pulp and paper, etc. • Solid waste management incinerators

    13. 13 Market Size The worldwide annual revenues for power plant air pollution control in 2005 were estimated as US$34.3 billion and the annual capital expenditure in DeSNox is about US$ 13 billion. Lextran’s addressable markets segments are the following: • In Coal Power plants is US$8,24 billion. • In HFO (Residual oil) plant is US$ 1.07 billion. Increasing focus on DeSNOx will greatly increase the market size worldwide in the 2010-2012 periods due to the concerns about Mercury and other heavy metal pollutants and the related enforcements regulations. Almost 60% of all Coal projects are being built for the U.S., China, Mediterranean and Eastern European countries, that have recently joint the European Community, such as Poland, Romania, Bulgaria.

    14. 14 Lextran’s Coal Market - US$ 8.24 billion

    15. 15 Lextran’s HFO Market - US$ 1.07 billion

    16. 16 Investment Cost Comparison

    17. 17 Operational Cost Comparison

    18. 18 Total Cost Comparison - Investment & Operational

    19. 19 Our products and services Lextran offers the following 3 services: I. A Technology Engineering Basic Package and supply of Lextran’s liquid catalyst II. Full scale new Plants or retrofit of existing installations III. Supplementary Operational and Maintenance service agreements Lextran offers complete solutions: from the Definition of the Problem; Pre-Project analysis; Laboratory tests; Pilot plant; up to the Implementation – full scale plant, and - O & M supervision services

    20. 20 Lextran’s key benefits Direct Benefit - Compliance with Clean Air Act and Regulations:- In Coal based Power plants: Lextran process is the simple and cost efficient solution to comply with the stringent Clean Air regulations. In Heavy Fuel oil Power plants (Steam and Diesel) Lextran removes almost 100%, no matter what the is sulfur content. By Products - Ammonium nitrate and ammonium sulfate can be utilized by the fertilizer industry.

    21. 21 Lextran’s key benefits (continuation) New or Retrofit - The benefits apply to both new power plants and retrofits. EPA revised clean air regulations mandate DeSNOx for every coal power plant, many of which were previously exempt. The Lextran process requires a small footprint and can be constructed while the plant continues to operate. Only a few days of connection are needed to become operational.

    22. 22 March 2008 - Lextran Worldwide Presence

    23. 23 Business Model Lextran is seeking to license its patented Lextran system to specialized companies in a number of selected countries: North America, EU (Mediterranean & East Europe), China, South Africa, South East Asia. Lextran is seeking major players (partners) in these markets that will receive the rights to market & supply the Lextran process: The partner will deal with all the marketing maters, as well as detailed engineering, project management and commissioning on site. The partner will invest in a local joint venture and undertake large scale demonstrations projects using the Lextran process.

    24. 24 Contact information Mr. Haim Sterenfine General Manager Mobile: + 972-52-234 1345 Tel: + 972-3-918 2000 e-mail: haim@lextran.co.il haim@ludan.co.il Mr. Arie Manor VP Business Development Mobile: + 972-52-484 9529 Tel: + 972-3- 9182045 e-mail: amanor@lextran.co.il arimanor@ludan.co.il LEXTRAN LTD. Fax: + 972-3-9182022 Address: 6 Granit St. Kiryat Arie, P.O.B. 3584 Petah Tikva 49130, Israel www.lextrantech.co.il

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