The ”Ultra” technology a strong alternative to boric acid

1. The ”Ultra” technology a strong alternative to boric acid June 2007

2. Executive summary • The traditional stabilizing system for liquid detergents is a combination of boric acid and propylene glycol • The EU have passed legislation on boric acid in February 2007. • Most detergents can be stabilized with less than the limit of 5,5% boric acid • We expect that some major detergent producers will take out boric acid from their formulations on a world wide basis • We believe that the “Ultra Technology” is the best alternative technology on the market today

3. Background • Proteases are used widely in liquid detergents for laundry and automatic dish wash in order to meet the high cleaning standards of today. • In liquid detergents, proteases must be stabilized in order to reduce/eliminate activity loss during storage. • The traditional stabilizing system is a combination of boric acid and propylene glycol. • There is an increasing focus on chemicals and their potential harmful effects on humans and the environment. • The EU have passed legislation on boric acid in February 2007.

4. Boric acid classification in the EU • The EU Commission’s has proposed to classify boric acid and borates as CMR Category 2 reproductive toxicants • The proposal has now been adopted following a Member State vote • The specific concentration limit for boric acid is 5.5% • EU Member States shall implement the classification before 1. June 2009 • Products containing more than the limit must be labelled Toxic: R60 May impair fertility R61 May cause harm to the unborn child

5. Differences between the “Ultra” technology (4-FPBA) and Boric Acid • 4-FPBA and Boric Acid are two completely different chemicals • 4-FPBA is significantly less toxic than Boric Acid • 4-FPBA is significantly more effective than Boric Acid • The consequence of the lower toxicity and higher efficiency of 4-FPBA makes the toxic exposure 100 times less than for Boric Acid • 4-FPBA does not have negative environmental impact

6. Will detergent producers replace boric acid? • Most detergents can be stabilized with less than less than the limit of 5,5% boric acid, and therefore they do not have to be labeled • Some detergent producers may decide to remove boric acid anyway for a number of different reasons: • Pressure from NGO´s and consumer associations to remove boric acid • For ethical reasons • To actively use this in the positioning of their detergents

7. Examples of possible claims for detergents without boric acid • Eco formulation • Boric Acid Free • Environmentally friendly • Sensitive

8. Replacement of boric acid is top of mind • We have experienced a very big interest in our “Ultra” technology from many detergent producers. • We expect that some of the major detergent producers will take out boric acid from their formulations on a world wide basis.

9. Technologies for stabilization of liquid detergents – the options • Boric acid/MPG • Well known and proven technology • Relatively cheap • Gives stability and a weak buffer capacity • Works in reality only at pH above 8 • Formic acid • Well known and proven technology • Cheap • Not as efficient as boric acid/MPG • Works only at pH below 8.5 • Amino acids • Adding various peptides to saturate the formula with substrate for the proteases • Not very efficient • Not well technically founded • Cheap if various waste protein products are used

10. Technologies for stabilization of liquid detergents – the options • The “Ultra” technology (4-FPBA) • Built into the enzyme formulations • Makes it possible to potentially eliminate both boric acid and MPG • Easy to use • Simplifies detergent formulation • Avoids any problems with boric acid content due to EU regulations • Does not work effectively above pH 9.3

11. The “Ultra” technology what is it and how does it work? • The “Ultra” technology contains 4-FPBA (4-Formyl-Phenyl Boronic Acid) which binds the active site of the protease. • This inactivates the protease, thus inhibiting cannibalization of the protease as well as other enzymes in the detergent. • The process is reversible and full enzyme activity is regained when the complex dissociates in wash liquor.

12. Benefits of built-in stabilizer • Offers possible cost savings and formulation optimization • Eliminate or reduce level of traditional stabilizers • Simplifies logistics with fewer raw materials needed • Decrease number of ingredients • Avoid dissolving step for Borax • Is more environmentally friendly • Improved substitution option – 0.1% 4-FPBA can replace 1-3% boric acid • EU to classify boric acid as reprotoxic substance • No compromise on stability

13. Protease activity remains unaffected • Take advantage of the new built-in stabilizer to reduce your spending on costly ingredients such as monopropylene glycol (MPG). • The stability of Savinase Ultra and Alcalase Ultra products is not reliant on boric acid or MPG. These two ingredients can therefore be eliminated or reduced.

14. Protease activity unaffected by reduced MPG • In the case of MPG the residual protease activity of the Ultra products remains at high level even as MPG levels are reduced.

15. 4-FPBA effect in US liquid detergent Residual Protease activity after 8 weeks at 30° C (86°F) a) PG is propylene glycol

16. Basic recommendations: The effect of the built-in stabilizer in Savinase Ultra and Alcalase Ultra depends on the specific conditions that apply to your formulation. For optimal stabilization we recommend: • pH  9.3, preferably 8 to 8.5 • No or very reduced level of boric acid and propylene glycol • Low content (below 5%) of ethanol amines (MEA, TEA) Protease stability in Savinase and Savinase Ultra is affected when the pH exceeds 9

17. High storage stability • Stability tests on Savinase Ultra in different liquid detergents show that the built-in stabilizer system ensures high residual protease activity. Results from tests at 30°C and 37°C (86°F and 99°F)

18. Residual enzymatic activity remains high • The residual activity levels of other enzymes also remain high in the presence of the Ultra proteases. Unless stabilized, protease will cannibalize itself and other enzymes in the formulation. The built-in stabilizer prevents this from happening and thus ensures that residual enzymatic activity remains high during storage.

19. Alcalase Ultra, Liquanase Ultra and Savinase Ultra benefits • Formulation optimizationRemoval or reduction in level of other stabilizers such as boric acid and propylene glycol gives more ”space” for optimization of the formulation. • Cost savingsThere may be a cost saving due to removal or reduction in level of other stabilizers. • Reduced level of Boric compoundsIt is common to dose 1-3% boric acid. With the new stabilizer the concentration will in the detergent be below 0.1% boric compound while maintaining stability and performance. • Simpler manufacturing processes Decrease in number of ingredients.Avoid dissolving step for Borax.

20. Conclusion • We believe that the “Ultra Technology” is the best alternative technology on the market today • The EU have passed legislation on boric acid in February 2007, but most detergents can be stabilized with less than the limit of 5,5% boric acid • Still, replacement of boric acid is “top of mind” • We expect that a number of major detergent producers will take out boric acid from their formulations on a world wide basis • The Ultra Technology is offers possible cost savings and formulation optimization • By using the Ultra Technology you can avoid the dissolving step for Borax • The lower toxicity and higher efficiency of 4-FPBA makes the toxic exposure 100 times less than for Boric Acid • The Ultra Technology offers you a more environmentally friendly solution without compromising stability