Global N oninflammable Industry Leader

1. Global Noninflammable Industry Leader 2009 Investor Relations Eco-friendly Non-flammable Liquid Material 119P

2. Contents Investor Relations 2009 Chapter

3. Investor Relations 01_Introduction of Non-flammable Materials Chapter 2009 Chapter 01_Introduction of Non-flammable Materials

4. Background of Business Investor Relations 01 Chapter 01_Introduction of Non-flammable Materials 2009 “A new matter which doesn’t exist previously” “Non-flammable materials producing enterprise” Global Noninflammable Industry Leader ● Background of Non-flammable Material Business Non-flammable materials influence on refraining or mitigating combustion by enhancing the properties of organic substances such as flammable plastics physically and chemically. Their functions are presented by hinder certain combusting stages such as heating, degradation and calorification. Polymer or general painting materials which are used broadly have several excellent functions in the overseas industries as well as domestic industries while they are rather weak against internal flame and fire, so interest for certain non-flammable materials has increased. Besides these tendency, regulations for non-flammable materials have been applied strictly to several fields such as electricity, electronic devices, automobiles, constructing materials, vessels, air liners and air crafts, and electric wires in the advanced nations. Existing non-flammable materials consist mainly of halogen-based organic brome series or chloride series. However, theses materials are excellent for their effects but any enhancements against the existing non-flammable materials and their replaced materials are required to be developed because stability and safety come into a spotlight for the environment and human body according to the occurrence of harmful gases such as dioxin. According to these domestic and overseas tendency, as we want to develop eco-friendly non-flammable liquid substances having excellent thermal stability and consisting of minerals which don’t do harm to human body with a base of long timed research and field experience in order to settle the matters about nonflammable materials required over the entire industries in hand and to contribute their related fields.

5. Mechanism of Non-flammable Materials Investor Relations 02 Chapter 01_Introduction of Non-flammable Materials 2009 Global Noninflammable Industry Leader ●Physical Methods ● Chemical Methods 1.Cooling: To delay combustion reaction, decreasing peripheral temperature by endothermic reaction 2. Overcoating: To delay combustion reaction, blocking heat, inflammable gases and oxygen from moving to the other place 3. Diluting flame incurring elements: To delay combustion reaction, generating non-flammable substances 4. Blocking Oxygen: To block oxygen from the fire broken out place 1. Property of Noncombustible Substance: To prevent combustion by the property of noncombustible substance and delay combusting process through delaying combustion 2. Overcoating: To form carbonaceous layer by double bond of polymers 3. Increasing the flow of polymers: To isolate any material from flame or fire by increasing the flow of polymers

6. Recent Tendency of Non-flammable Materials Investor Relations 03 Chapter 01_Introduction of Non-flammable Materials 2009 Global Noninflammable Industry Leader ● Reinforcement of Regulating Non-flammable Substances • To minimize the diffusion of flame and the number of casualty, demand for non-flammable • materials over the length and breadth of several sectors has increased and their requirements • have been diversified. • Brome and halogen based non-flammable materials have been replaced to non-dioxin materials. • Mineral based non-flammable materials have led world market. • Reinforcement of regulating environment • Eco-friendly non-halogen based low smoking materials have been developed. • Excellent thermostable materials have been developed. • Multi-purposed non-flammable materials have been developed. • (Antiseptic, Mothproof, Antibiotic and Sound-proof Functions)

7. Domestic & Overseas Conditions Investor Relations 01_Introduction of Non-flammable Materials 04 Chapter 2009 “Interests about safety against fire and fire preventing method have increased in Korea and foreign countries” Global Noninflammable Industry Leader ● Domestic Conditions • Constructing and fire-fighting laws have been reinforced as certain countermeasures against fire. 2. Interests about safety issue for fire have increased due to the continuously occurring large accidents ● Overseas Condition 1. Constructing and fire-fighting laws have been reinforced as certain countermeasures against fire. “Demand for non-flammable materials have increased due to certain lawful and natural conditions”

8. Investor Relations Chapter 02_ Non-flammable Materials 119P 2009 Chapter 01_Non-flammable Materials119P

9. Characteristic of 119P Investor Relations 01 Chapter 02_Non-flammable Materials 119P 2009 Global Noninflammable Industry Leader ● Characteristic of products • 119P is a kind of mineral phosphorus based non-flammable material, exerts strong coherence with • paper, cloth, plastics and wooden products to resist and absorb heat, produce harmful gases • while its combustion and consists of eco-friendly non-inflammable mineral compounds by using • non-harmful mineral compounds. • While its combustion,119P, eco-friendly non-flammable material, doesn’t occur harmful gas such as dioxin. • 119P has several characteristic such as excellent non-combustibility, insulating and isolating efficiency. • Antiseptic, low flammable, weatherproofing, anti-abrasion and thermostable efficiency are reinforced. • Multi-purposed non-flammable materials preparing antibiotic and deodorizing efficiency are prepared. • As nano-materials (SiO2, Al2O3, TiO2, etc.) are used, transparency is secured. • In case of injecting 119P into wood, no change, split and torsion happen and the original colors and outlook of the possible material are maintained. • Excellent antiseptic, mothproofing and white ants' intrusion blocking efficiency are secured. • 119P can be applied to several plastic additives, and internal and external coating agent for construction. (Coating and injecting function are available.) • In case of adding it to general paint, excellent non-flammability is secured. • It plays a role of filling agent into the resin. • No limit to materials and it can be used broadly.

10. Production of 119P’s Materials Investor Relations 02 2009 Chapter 02_119P, non-flammable Materials Global Noninflammable Industry Leader ● Characteristic of Product ● Elemental Characteristic of Non-flammable Materials 119P, a non-flammable material, secures non-flammability, extracting several kinds of minerals at high temperature. Also, it is extracted from the plant showing non-flammability, aged and then mixed. Raw materials extracted and mixed from the raw materials at 80℃℃℃℃℃℃℃℃ Celsius degrees by repeating several processes such as dispersion, adjusting the mixing ratio of mixing agents and penetrant, any harmful elements and toxicity are removed and then 119P’s production is completed. As 119P is produced through repeating extraction and mixing at a very close temperature and complex process, other company can’t analyze the elements of 119P or imitate 119P.

11. Application of 119P Investor Relations 03 Chapter 02_Non-flammable Materials119P 2009 Global Noninflammable Industry Leader ● Mechanism of119P as Non-flammable Material • ㅇㅇㅇㄹ119P, mineral compounds, is a new material produced through ceramic mixed process at high • temperature and aging process and make several materials have high thermal resistance and • \anti-absorbing property by forming P-O-P structure and P-O-M-O-P polymeric structure by • thermal dehydrating bridge reacting stirrer of mineral water-solubility. • Cooling process by endothermic reaction of metal oxide and metal salt • Forming shield by forming char • Stabilization of active radical by phosphate degradation(Forming radical collector) • Diluting combustible elements through generating non-combustible substances • Cooling process by dehydration of metal hydroxide • In case of synthesizing with the other compounds which can’t be synthesized with the other compounds after extracting the minerals at high temperature of 2,500~2,800 ˚C, • any time is required to adjust aging process at a proper temperature.

12. How to Use This Product Investor Relations 04 Chapter 02_ 02_Non-flammable Materials119P 2009 Global Noninflammable Industry Leader ● Material For Coating 1. After washing out the pollutant such as oil remaining on the surface of materials for coating with \alcohol and water and then drying them, remove moisture on the surface. 2. After performing prior process, apply the coating agent of 20~50 μm to the surface with a brush or roller. 3. Harden the coated agent for 40 minutes at the normal temperature or for 5 minutes at 160 ˚C. 4. Make sure if any defect exists on the surface. ● Material For Impregnation • Insert the material into an impregnating tank • Decompress the product in the vacuum applied tank by 766 atmosphere on 0 condition. • Deodorizing process is performed reversely for the product. • Perform drying process. (natural drying process and artificial drying process)

13. How to Use The Product Investor Relations 04 Chapter 02_Non-flammable Material119P 2009 Global Noninflammable Industry Leader 3 Vacuum Process(Decompress it to 500 to 760 mm. 4 Steam Pressure(Adjustable) 5 Insert non-flammable material. 1 Select the size of materials. 2 Impregnate the materials into a tank. 6 Apply pressure(10~12hours) 7 Pressuring time is adjustable according to the species of wood. 8 Discharge pressure. 9 Discharge material. 13 Natural Drying Process (for 3 days) 10 Subtract the remnant raw material. 11 Water washing 12 Air washing ● Detailed Process of Impregnation 14 Artificial Drying Process (For 3~7 day) 15 Packaging 16 Carrying-out

14. Present Conditions of Acquiring Patents Investor Relations Chapter 02_Flammable Material119P 05 2009 Global Noninflammable Industry Leader ● Test Result ● Applying for Patent KICT (Fireproofing Door) KICT (Plywood) KICT (Arbon) Non-flammable Raw Material Patent No:10-0001907 Fireproofing Door Patent No:10-0001909 Quasi-non-flammable Wood Patent No:10-0001908 KICT (Louver) KFPA (Material Lumber) KIF (Plywood) “Pass Quasi-non-flammable Material Test” (KICT) Quasi-non-flammable Louver Patent No:10-0001642 Quasi-non-flammable Sawdust Patent No:10-0001910 Patent of Non-flammable Louver Patent No:10-0064576

15. Present Conditions of Acquiring Patents Investor Relations 05 2009 Chapter 02_Non-flammable Material119P Global Noninflammable Industry Leader ● Government’s Permitting Product for Non-flammable Constructing Materials (KS F 5660-1) 1. Eco-friendly fabric soundproofing board, ceiling board, reinforced floor material, wall insulating materials, closet and furniture materials, office appliance, kitchen furniture(sink), board, fireproofing door, wall finish-ups 2. Acquired patent for non-flammable fabric board (z-pro) 3. Products under development: Plastic replaced chip’s raw material, interior materials of ship (IMO standard satisfying material), non-flammable urethane, etc.

16. Investor Relations Chapter 03_ Introduction of Main products 2009 Chapter 03_Introduction of Main Products

17. Fabric Fireproofing Door Investor Relations 01 Chapter 03_Introduction of Main Products 2009 Global Noninflammable Industry Leader ● Fabric Fireproofing Door Set 1. Door: Heartwood(25mm-4X8size), Board(7mm-4X8size),Gasket, Foam Type, Cerakwool, film, etc. 2. Frame: Casing(MDF), Film ● Producing Plan &Manufacturing Cost (Unit: Won)

18. Fabric Fireproofing Door Investor Relations Chapter 03_Introduction of Main Products 01 2009 Global Noninflammable Industry Leader ● Comparing of Selling Price to the Companies’Products (Unit: Won) ● Profit and Earning Rate (Unit: Won)

19. Fabric Fireproofing Door Investor Relations 01 Chapter 03_Introduction of Main Products 2009 Global Noninflammable Industry Leader ● Producing Plan and Main Suppliers 1. Producing Plan(Manufacturing the doors with OEM manufacturing method by domestic door manufacturing company) - Acquiring raw materials: Domestic companies(30%),Overseas companies(70%) → In case domestic manufacturing facilities are equipped, the acquiring rate will be 70% in Korea and 30% from foreign countries 2. Manufacturing Capacity: Non-flammable Process – 60,000 sheets a month, Set – 10,000 sheets a month (May, 2009) ● Characteristic and Comparison of Fabric Fireproofing Door

20. Investor Relations Chapter 03_Introduction of Main Products 02 2009 Z-PRO Global Noninflammable Industry Leader ● Configuration of Z-Pro 1. Component Ratio per 1m2 : MDI(74.4Kg), Straw(669.6Kg) 2. Dimension: Size- 1,220X2,440mm Thickness– 6, 9, 12, 15, 20, 25, 40mm, etc. Various shapes can be manufactured. ● Characteristic of Z-Pro 1. Acquired super E0 class eco-friendly mark (KOECO) 2. Formaldehyde, a main cause of SBS (Sick House Syndrome), is not detected. 3. Excellent tensile force (More excellent than MDF and plywood) 4. No harmful gas 5. Excellent thermal conductivity ● Z-Pro’s Purposes • Z-Pro can be used widely to various fields such as architecture, finish-ups, and flooring and ceiling interior materials. (Existing MDF and plywood can be replaced.) • Flooring material of boiler, and soundproofing material of floor, wall and layer • Toys, Entertaining Facilities, Furniture

21. Investor Relations 02 Chapter 03_Introduction of Main Products 2009 Z-PRO Global Noninflammable Industry Leader ● Manufacturing Process of Z-Pro

22. Investor Relations 02 Chapter 03_Introduction of Main Products 2009 Z-PRO Global Noninflammable Industry Leader ● Comparison of Z-Pro and Other Products

23. Other Products Investor Relations 02 Chapter 03_Introduction of Other Products 2009 Global Noninflammable Industry Leader ● Quasi-non-flammable Louver - Quasi-non-flammable Louver 1. This louver can be used as an interior material in several fields where no wood was used. 2. This louver prevent insects’ propagation and maintain buildings for a long time without damage. 3. Easy construction -Marketability of Quasi-non-flammable Louver 1. Applied Targets: pension, silver town, wooden house, officetel, gositel, business place, karaoke, etc. 2. As this louver is simple, compared to the existing construction, period of construction can be shorten and construction cost can be reduced. ● Flooring Materials with Material Lumber - Characteristic of flooring materials with material lumber 1. Special UV coating – anti-scar and anti-impact 2. Material lumber is used on the upper and lower plates, natural coating material and eco-friendly bond are used. 3. As the side is processed precisely, no blur exists. - Marketability of flooring materials with material lumber 1. Applied Target: APT, housing, wooden house, government & public office, school auditorium, etc. 2. This louver passed quasi-non-flammable test for the first time in Korea. 3. As this louver uses material lumber and natural oil as finish-up materials, it comes to the spotlight as eco-friendly product.

24. Other Products Investor Relations 03 2009 Chapter 03_Introduction of Main Products Global Noninflammable Industry Leader ● Ceiling Materials - Characteristic of Ceiling Materials 1. As electric wire is placed on the original plate, the wires on the connected part can be connected automatically. (Separation is possible.) 2. Construction is easy and construction period can be reduced (Developed by KIST) 3. Minimize standby amount of power as LED lights are used. (below 1W) - Marketability of Ceiling Materials 1. Applied Target: Several kinds of buildings, ships, etc. 2. As gypsum board is forbidden lawfully, this material can be replaced the board and sales will increase. 3. With a base of KOTM’s notice that the standby power standard of all the electric home appliances shall be limited to 1W, demand for this ceiling material is expected to increase at the government and public offices. 4. Developed with KIST’s assistance (Applying patent is proceeded in Korea, USA and EU at the same time.) – Amount of export is expected to increase. ● Fireproofing Wooden Blind - Characteristic of Fireproofing Wooden Blind 1. Easy process is realized because of smooth and warm design of material number, quality of material are adapted wholly. 2. Eco-friendly more than the existing blind such as aluminum and ROM blind - Marketability of Fireproofing Wooden Blind 1. Applied Target: APT, house, wooden house, multi-purpose utility facilities 2. As fire-fighting law was revised, blind should be fireproofing facility at the multi-purpose utility facilities. *Multi-purpose utility facilities: Staying facilities (Condominium, Pension, Hotel, etc.), Hospitals, Broadcasting Centers, Financial sectors, etc. 3. More than 30% of the existing blind facilities can be occupied. 4. Staying facilities and financial facilities take interest in this materials. ● Non-flammable Urethane / Non-flammable Adhesive were developed.

25. Investor Relations Chapter 04_Futuristic Vision 2009 Chapter 04_Futuristic Vision

26. Promoting Direction by Stage Investor Relations 01 Chapter 04_Futuristic Vision 2009 Global Noninflammable Industry Leader 1st Stage_Completion of Foundation Willconquer domestic n.f market with a base of independent technologies. 2nd Stage_Completion of Growth Will maximize profits through R&D of products and establishing Commercial production 3rd Stage_Leapping to a Global Enterprise Giving any change in the life-style, n.f product will be used broadly. Extending n.f processing plant / Z-PRO China plant will be established / Extend OEM business. Developing technology / Product the products commercially) Constructing Field Completed to develop LED ceiling material and Z-PRO. Establish recognition for brand. KICT will send dissertations to domestic and overseas shipbuilding companies. Synergy Effect Passing IMO test(Domestic test) Shipbuilding /National Defense Sec. Through systemic and stable growth plan, we will conquer domestic non-inflammable products Market and promote Lockfire brand in the world in order to maximize maximum profits. Developing and selling national defense products Establishing global marketing “Non-carbon city”, Abu dhabi 2030 project such as combat uniform, bulletin box, materials for barrack, battle ship, etc. Joining UAE Abu Dhabi’s business Exporting Sector Exporting the materials to Japan and Vietnam Collaborating with Chinese conglomerates Non-flammable factories shall be established in China. Listing of Stocks

27. Construction Field Investor Relations 02 Chapter 04_Futuristic Vision 2009 Global Noninflammable Industry Leader ● Launching new products continuously ● Establishing commercial production 1. Non-flammable products producing plants 2. Establishing China localized plants 1. LED All-in-one Ceiling Products 2. Non-flammable Urethane / Non-flammable Adhesive

28. Shipbuilding/National Defense Sector Investor Relations 03 Chapter 04_Futuristic Vision 2009 Global Noninflammable Industry Leader ● Shipbuilding Sector ● National Defense Sector 1. Non-flammable wooden materials for shipbuilding sector are ready to be produced for the first time in the world. 2. Materials supplying plan for MND

29. Investor Relations Chapter 06_Business Managing Plan 2009 Chapter 05_Marketing Plan

30. Outline of Market Investor Relations 01 Chapter 05_Marketing Plan 2009 Global Noninflammable Industry Leader ● Non-flammable and Fireproofing Construction Product Market • As safety standard related to fire-fighting raw has been reinforced and the number of advanced building have increased, non-flammable sector has been grown continuously. • The size of domestic panel and exterior material market is assumed to be 1,5 trillion wons a year and about 160 companies participate in the competitions for bids. • The size of non-flammable market is about 300 billion wons and 30 companies participate in the competition for bids. • The volume of consumption in 2005 was 2.9 billion pounds and will be 3.4 billion pounds in 2010, 3.5 % increasing. • As the cost has increased, it influences on the sales of market, the amount in 2005 was about 3.5 billion US dollars and will be 4.6 billion US dollar in 2010. • The percentage of Brome based non-flammable product is 56% in Korea and its ratio is twice of 20% in the world market. • As the existing non-flammable product do harm to human body and environment, demand for eco-friendly product has increased. Especially, EU has performed ‘RoHS for ‘electric and electro appliances’, which limits to use 6th harmful products such as heavy metal and flammable products.

31. Scale of Non-flammable Products Market Investor Relations 02 Chapter 05_Fund Supplying Plan 2009 Global Noninflammable Industry Leader Unit: Year/Ton (단위:년/톤)

32. Competitive Strategies Investor Relations 03 Chapter 05_Marketing Plan 2009 Global Noninflammable Industry Leader ● Our Strategy • Uplift our competitiveness by producing different eco-friendly products. • Emphasize especially differentiated competitiveness in non-flammable wooden • material among our products. • ※ We are the only maker producing non-flammable wooden materials in Korea. • Making straw fiber board specialized, we enter into constructing materials. • Establishing specialized systemic marketing strategy and activating marketing • organization • Uplifting the concept of low carbon, eco-friendly green growth and continuous growing model as our core strategy. • To prepare a base of strong manufacturing competitiveness and marketing activity, securing and investing proper fund.

33. SWOTAnalysis Investor Relations 04 Chapter 05_Marketing Plan 2009 Global Noninflammable Industry Leader Strength Weakness • Differentiated products • (Eco-friendly products and performance) • Procuring independent technology • Application of various products • Reinforcing productivity • Insect-proofing and antiseptic function • Consume a good deal of fund • Weak business base • Low recognition of initial brand • Initial weak distribution organization • and marketing network W S • Expand the marketability • Extend markets for eco-friendly products • Expect governmental politic support • Compete with leading enterprises • Block against initial advance for the • market T O Opportunity Threaten

34. Blue Ocean Strategy Investor Relations 05 Chapter 05_Marketing Plan 2009 Global Noninflammable Industry Leader Innovation of Product Value Forming specialized market Maintaining leadership through Continuous developing of product Global standardization of products Creating new (blue ocean) market Business of High Value Uplifting profit Markets without Competitiveness Maintaining independent competitiveness with independent solution Forming independent state in the market

35. Investor Relations Chapter 06_Fund Supplying Plan 2009 Chapter 06_Fund Supplying Plan

36. Investor Relations 01 Chapter 06_Fund Supplying Plan 2009 Investing Plan Global Noninflammable Industry Leader ● Investing Plan ·

37. 02 Sales Plan Investor Relations Chapter 06_Fund Supplying Plan 2009 Global Noninflammable Industry Leader ● Sales Plan (Unit:Million Won) ·

38. Assumed Balancing Plan Investor Relations 03 Chapter 06_Fund Supplying Plan 2009 Global Noninflammable Industry Leader ● Assumed Balancing Plan (Unit: Thousand Won) ·

39. Global Noninflammable Industry Leader Thank you For Your Attention!