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ACS Meeting March 25, 2007

ACS Meeting March 25, 2007. MBITA Meeting September 19, 2008. MBITA Meeting September 19, 2008. Green Trade Summit. MBITA Meeting • Santa Cruz • September 19, 2008. Table of Contents. MBITA Meeting September 19, 2008. • The Situation - Industrialized World - Developing Nations

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ACS Meeting March 25, 2007

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  1. ACS Meeting March 25, 2007 MBITA Meeting September 19, 2008

  2. MBITA Meeting September 19, 2008 Green Trade Summit MBITA Meeting • Santa Cruz • September 19, 2008

  3. Table of Contents MBITA Meeting September 19, 2008 • The Situation - Industrialized World - Developing Nations • Sylvan Source Solution • How to Globalize - Asia - MENA

  4. The Global Situation • Industrialized nations, with an aging infrastructure face significant problems, aggravated by increasing levels of industrial pollutants. • Developing nations, in their efforts to industrialize, have not invested in water treatment and distribution commensurate with population growth. As a result, drinking water quality at times reach levels that threaten widespread health. Source: Data from Shiklormance and Rodda, 2004. Freshwater has a global volume of 35.2 million cubic kilmetres.

  5. Fresh Water In Decline • Global water supply dropped by33% since 1970* • Fresh water scarcity growing regionally • Water tables dropping (USGS) • Salt water incursions (USGS) • Saline in ground water (USGS) • Fresh water contamination • Contaminated drinking water is responsible for a large percentage of human disease (WHO – World Health Organization) • 2,000 new chemical compounds introduced each year** • 99.5% of chemicals in the U.S. do not have a federal or state standard** * Bernadette McDonald & Douglas Jehl, “Whose Water Is It?” ** Patrick Sullivan, Franklin Agardy, James Clark, “America's Threatened Drinking Water”

  6. Fresh Water In Decline Centuries-old infrastructure • Waste and fresh water pipes crossed over in Atlanta resulting in tap water that looked like beer (U.S. News & World Report) • 650 water mains break every day, chronic leakage in about 20-30% of the infrastructure (USGS) • Debris, fecal matter, drugs and toxins get sucked into “fresh” water pipes (USGS and U.S. News & World Report)

  7. The Result Increasing Contamination • 54 million+ people in the U.S. with arsenic in tap water at unsafe levels - NRDC • Estimated 15 million to 40 million+ people in the U.S. with MTBE in tap water or water source (no federal guidelines) - EWG • 20 million+ people in the U.S. with perchlorate in their tap water (no federal guidelines) - EWG • More than 4,000 reported health-based violations in community water systems in the U.S. affecting 23 million people – EPA • In the US alone, it is estimated that industry generates about 36.3 billion kg of hazardous organo-pollutants each year, with only about 10 percent disposed of in an environmentally responsible manner (Reddy and Mathew, 2001). Growing Consumer Fears Fuel Bottled Water Demand • $9+ billion spent in 2004 on bottled water in the U.S. • Safety of tap water is biggest reason consumers purchase bottled water • 240 to 10,000+ times more expensive per gallon of bottled water than average tap water • The World Health Organization (WHO, 2000) warns that bottled water can • actually have a greater bacterial count than municipal water. • • In the United States, the standards by which bottled water is regulated • (FDA) are actually lower than those for tap water (regulated by the EPA) • (Gleick et al., 2004).

  8. In Europe, the Situation is Similar Release of Total Organic Carbon (TOC) Directly or Indirectly to Water in Thirteen EU Member States, 2003 Industrial plants for pulp from timber or other fibrous materials and paper or board production (>20t/d) - 240,771,200.00 kg Installations for the disposal of non-hazard waste (>50t/d) and landfills (>10t/d) - 123,851,400kg Basic organic chemicals - 41,957,238.80k Others - 30,943.80kg Slaughterhouses (>50t/d), plants for the production of milk (>200t/d), other aanir raw materials (>75t/d) or vegetable raw materials (>300t/d) - 18,628,850.00kg Source: EC 2004

  9. The Consequences • Every year, in the poorest countries, approximately 10.8 million children die before their fifth birthday, mainly due to poor water quality. Of these, 4 million die before they reach 1 month old. • Twenty-six countries with a combined population of more than 350 million people are located in regions with severe water scarcity • The combination of population growth, future declines in clean water availability, and global warming will further aggravate this situation. Source: (WWDR2)

  10. An Effective POU Solution • Sylvan Source Technology: • An ultra-clean water system utilizing a proprietary distillation and steam separation method to safely reduce contaminants in tap water • More effective at reducing more contaminants than any other product or technology • IAPMO, UL, and NSF certified (Standard 62 plus perchlorate) • State certified in CA, MA, and WI • Automated and self-cleaning requiring no cartridges, membranes or chemicals • Up to six gallons of water per day with multiple points of delivery (such as faucets, standard ice-makers and other water resources)

  11. Comparative Performance Sodium Chloride (NaCl) is a reasonable proxy for “salts” such as nitrates, sulfates, chlorides, perchlorate; and heavy metals such as lead, mercury, antimony and arsenic present in water as salts. Isopropyl alcohol (IPA) is a reasonable proxy for Dioxin, Phenol, EPTC, chloroneb, epichlorohydrin, trans-nonachlor, and endosulfan sulfate. Methyl ethyl ketone (MEK) is a reasonable proxy for MTBE, PCBs, acetone, chlordane, trifluralin, nitroso-diphenylamine, DBCP, di nitro toluene, and diethyl phthalate. Source: Internal Sylvan Source testing

  12. How to Globalize • For a young company with limited resources: • Prioritize (business volume or cash?) • First, Asia: largest need for fresh water, highest growth and lower cost manufacturing, but must: • Have an effective IP protection strategy • Carefully select partners • Continuously monitor progress • Next, MENA region because of market needs and large financial resources, but must: • Understand local culture • Carefully define and structure opportunities.

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