Successful Invention & Production of the World’s First Safest Anti-Virus Ozone Ventilator

1. Warderly International Holdings Limited Successful Invention & Production of the World’s First Safest Anti-Virus Ozone Ventilator November 2005

2. Contents 1. Project Background 2. R&D of Anti-Virus Ozone Ventilator 3. AVO Ventilator’s Distinctive Features 4. Future Uses & Applications

3. 1. Project Background

4. Electric fans Convector heaters Air-to-Air Heat Recovery Ventilator Air Purifiers Oil-filled Radiators About Warderly • Established in 1989 by Mr. K. W. Yeung, Chairman • Listed in the Main Board of HKSE in December 2002 • A fully integrated ODM/OEM manufacturer engaging in the design and manufacturing of air-ventilation related products, such as • Dedicated to R&D and product development

5. Warderly’s Commitment • Warderly has a strong commitment to improve indoor air quality • Invented the Air-to-Air Heat Recovery Ventilator in 2001/2002 and obtained patent in the PRC(2002), Hong Kong(2003) and the U.S.(2004) • During the SARS period in 2003, Warderly considered the possibilities of effective sterilization of bacteria and viruses • Warderly partnered with City University of Hong Kong to develop an Ozone-based apparatus for improving indoor air quality • Over 2 years of R&D, the first prototype of Anti-Virus Ozone Ventilator was developed in April 2005 • The Anti-Virus Ozone Ventilator obtained international safety standards: GS, EMC and CE in 2005 and passed preliminary examination for invention patent in PRC • The Anti-Virus Ozone Ventilator will be globally launched in December 2005

6. Partnership with CityU-Newstart • Partnership Model: • Warderly responsible for manufacturing, sales and distribution • Newstart responsible for product enhancement & development Newstart Warderly Financial & Technical Support Technology R&D Ozone Project Patent (Intellectual Property Rights) Product Type (AVO)

7. 2. R&D of Anti-Virus Ozone Ventilator

8. To bring forest into indoor environment Effective within the ENTIRE specific area, not locally System harmless to human, animals & plants Use most reliable and safe technology Avoid use of any potential hazard material Self-checking, build in intelligence Multiple function User friendly Globally affordable price Globally acceptable technology Patent protection AVO Design Philosophy

9. Sources: 1: http://www.who.int/csr/disease/avian_influenza/country/cases_table_2005_11_17/en/index.html (World Health Organization, 17 November 2005) 2:http://www.who.int/csr/sars/country/table2004_04_21/en/index.html (World Health Organization, 17 November 2005) Health Concern Rising health concerns trigger Warderly / Newstart to look for the best solutions to improve indoor air quality • Human infection with bird flu viruses occurred since 1997 • More than 130 confirmed human cases has recorded in South East Asia which caused a number of 67 deaths1 • The SARS outbreak during 2003 • Recorded 774 deaths out of 8,096 cases2

10. Why use Ozone • Exist in nature, in forest and good for health if concentration is low • Even excessive, no record has shown that people died of ozone • Unlike other chemical, it has no long term effect • Most basic oxidizing agent, even better than bleach or chlorine • Change back to oxygen less than 30 minutes, will not accumulate if use correctly • Almost zero maintenance • Can react with a lot of hazard chemical and the reaction and by product is totally harmless • Cheap, basic and use widely in Japan

11. Sources: 3-5: "Ozone Generators that are Sold as Air Cleaners: An Assessment of Effectiveness and Health Consequences“ (U.S. Environmental Protection Agency) 6: http://www.defra.gov.uk/environment/airquality/aqs/ozone/9.htm (Department for Environment, Food and Rural Affairs) Ozone Level International Standards • According to various studies conducted by different developed countries, the recommended ozone level in an indoor environment ranging from 0.05 ppm to 0.10 ppm

12. Problem Can’t control ozone level Release NO2 Emission of O+ ion Lack of O3 sensor Poor coverage Lack of knowledge Incorrect concept Incorrect interpret as pollutant Common design fault with O3

13. AVO Ventilator Technology • Build in high precision ozone sensor • Build in CPU for intelligent control • Build in humidity sensing for best performance • Build in temperature sensor for best PCT temperature control • Build in feedback control algorithm for entire system design • Build in –ve ion emitter • Innovative ozone plate design with extremely low NO2 emission • Spiral wind flow design for best ozone distribution • Simultaneous –ve ion & ozone emission to reduce O+ ion • Simultaneous O- ion emission for better healthy consideration

14. 3. AVO Ventilator’s Distinctive Features

15. AVO Ventilator’s Distinctive Features • The World’s First Anti-Virus Machine that can effectively regulate the ozone at a level of 0.05 ppm such that ozone can attack virus and bacteria shell, by mean of oxidation, to reduce its infection capability • Spiral Wind direction at different angles to allow clean and fresh air reach every corner, to ensure even distribution of ozone at an enclosed environment • O- ion good for human health

16. Advantages of AVO • Ozone is 100% harmless to human when used within safety limit, e.g. 0.08ppm suggested by EPA of USA or 0.05ppm for Europe & British standard • Neutralize indoor hazard substance or gas with ozone e.g. Formaldehyde, ammonia, etc • Neutralize substance is totally harmless • Ozone attack, by means of oxidation, virus or bacteria shell to reduce its infection capability • Ozone in spiral air flow is similar like using 1:99 bleach water with cloth • O-ion can improve the health of living organism • Resolve the problem of being locally effective • Build in alarm for fault detection • Multiple function: fan, -ve ion machine, ozone generator, etc

17. Comparison with Existing IAQ Improvement Devices

18. Comparison with Existing IAQ Improvement Devices

19. 4. Future Uses & Applications

20. Future Uses & Applications • Aviaries • Public Markets • Commercial Centres • Residential Buildings • Shopping Arcades • Schools • Offices • Hospitals

21. Conclusion Advanced Technology Bringing Best Quality to Health ***** Anti-Virus Ozone Ventilator ***** Provide Solutions to attack Virus or Bacteria and Reduce its Infection Capability in an Indoor Environment