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INTERNATIONAL ENVIRONMENTAL TECHNOLOGIES, INC. Environmental Solutions About IET 2 IET’s Best In Class Technology Solutions IET’s Core Technologies are cutting edge solutions to the world’s growing demand for effective and environmentally conscious waste disposal and water treatment requirements IET’s Core Technologies offer superior performance to all of today’s available alternatives Increased efficiency & operating effectiveness Reduced operating costs – minimal material handling, simple process with low maintenance requirements Broad application scope, quick installation, and highly scalable design IET’s Bundled Technology Solution Proprietary technology portfolio of complementary products and solutions CORE TECHNOLOGIES Thermal Waste Gasification (WG/TO) – Solid Waste Disposal Process generates significant quantities of recoverable heat and scrap - opportunities include the commercial resale of electric power and recycled metals/glass Electrocoagulation Water Purification & Treatment (EC) Instantaneous treatment of large volumes of water; requires no chemicals COMPLEMENTARY TECHNOLOGIES Nataprene space-age polymer & EC113 Concrete Treatment Highly complementary to the design & construction of IET’s core technology projects About IET 3 IET’s Unique Opportunity IET is a “Diamond in the Rough” Historical focus on technology R&D NOT sales & marketing Substantial project pipeline despite limited sales & marketing resources to date 3rd party verification of Best In Class claims – State of PA, State of FL, International Governments IET’s Waste & Water Treatment Focus Capitalizes on the positive global reputation regarding WG/TO & EC as industry best practices Financially Attractive – Recession proof industry, large capital allocations/mandates, high profit margins Best of the Best - bundled offering of proprietary technologies that are the Best in Class of the best practices Business Development Strategy Sales – Attain sales & revenue potential through strategic partnerships and internal expansion Strategic Investors – Resources necessary to promote business growth internally and externally Strategic Engineering Partners – Meet current and future demand Growth & Acquisition – leverage it’s core technologies, robust project pipeline, and strong profit margins Goals – Worldwide Waste & Water Treatment Portfolio of $5 billion via tax-efficient strategy utilizing retained earnings IET Products 4 Waste Gasification Thermal Oxidation (WG/TO) • • • • Industrial, Municipal and Hazardous Waste Disposal Applications Process recognized as a renewable energy source US Patent Awarded 2002 First plant successfully launched in 1996 (Anchorage, AK) Water Treatment & Purification through Electrocoagulation (EC) • • • • Wide range of applications and system sizes including desalinization Capital & operating costs are a fraction of alternative technologies US Patent Pending Extensive R&D by IET engineers since 2002 Nataprene • Replaces rubber, synthetics, steel, and alloys in manufacturing processes and mining operations • Complementary applications with IET’s WG/TO and EC Solutions - e.g. critical EC component design • Proprietary IP acquired by IET in 2005 EC113 Concrete Treatment • • • • Prevents contaminates from entering concrete without blocking its ability to breath Strengthens concrete to a hardness of granite and prevents corrosion on the steel rebar Complementary applications with IET’s WG/TO and EC Solutions Patented process utilizing chemicals, EC treated water, and special vacuum/pressure injection system Mechanics of Thermal Waste Gasification 5 What is Thermal Waste Gasification? The chemical conversion of organic solids and liquids into synthetic gases is achieved through highly controlled conditions of heat and availability of oxygen Disassociates the molecules of a complex waste substance into simple gases Highly efficient method of breaking down hazardous organic substances such as Dioxins and Furons A Two Step Process Primary Gasification Cell The waste is unloaded the primary cell (16 cells with varying holding capacity depending on facility); municipal waste doesn’t require specific organization Each cell is surrounded by a steel box where a refractory will insulate, but not hold the heat for a long time The oxygen-starved process allows combustible waste to be converted to gas and sterile, white ash which is recyclable The released gas is predominantly composed of CO and H2 Secondary Gas Processor Cell Outside air is then mixed with the gas from the primary and flared off at a temperature up to 2000 F This efficient method allows for leftover metals to be further recycled Finally, the introduction of turbines into this process provides new forms of renewable energy for surrounding areas Process Flow Diagram of IET’s Waste Gasification System 6 MSW In Flue Gas Gasifier Syn Gas Thermal Oxidizer Flue Gas Waste Heat Boiler Flue Gas Proprietary Scrubber Fly Ash Air Power Generation Bottom Ash Recyclables Proven Technology 7 The state of the art IET System IET’s technology was recently approved by The Florida Department of Environmental Protection following rigorous 3rd party due diligence by world renowned environmental engineering firm Golder Associates (www.golder.com) The State of Pennsylvania commissioned a $2M research report on 35 hazardous/solid waste processing technologies. It concluded that IET's gasification process would clearly serve as the best technology Proven application of technology – First facility online in Anchorage, AK (1996) How the IET System is superior to alternative technologies: Patented waste gasification process (2002) Lower capital investment costs than less efficient alternative technologies Lower operating expenses result in higher profitability Multiple cell units working simultaneously – highly scalable & efficient to maintain Emissions from IET’s system are lower than federal regulations without the use of scrubbers More types of waste can be gasified with IET’s system than the competitors’ systems – ranging from tires to plastics to large furniture items Thermal Waste GasificationProcess Facts and Advantages 8 Supported by the United States Department of Energy Eliminates 98.5% of all combustible waste materials Large scalability (modular cells range from 2 to 2500 ton systems) Average installation time is 4 to 6 months, depending on the size Provides for 100% recycling of aluminum, metals, and gases Clean and quite operation-no noise or obnoxious odors No pre-sorting or trash separation before processing Moisture in the waste does not affect performance Eliminated animals, birds, and insect scavenging in the waste Kills all pathogens in medical waste No special handling of medical waste is required Reduces volume of medical waste by over 98% Eliminated future need for landfills for combustible waste Small land requirements are less than 1% of landfill sites Very inexpensive operating costs/low cost of installation. Operator training and installation provided by IET Service and warranty provided by IET Water Purification through IET’s Electrocoagulation 9 Electrocoagulation Defined: EC is based on the principle of introducing an electrical current to induce a chemical reaction in water This reaction causes the destabilization of most suspended particles, bacteria, viruses, cysts, dissolved materials, metals, most hydrocarbons and many organics Once destabilized, positively charged ions react with negatively charged particles in the water resulting in floc precipitates that approach a highly stable state The floc created is highly stable and can therefore be easily separated from the water by a number of conventional secondary separation techniques Advantages of IET’s Electrocoagulation 10 IET’S technology reduces or eliminates the need for the use of chemicals and polymers that are normally used for this treatment; therefore, resulting in reduced sludge production and easier operation IET’S technology can be used as a pre-treatment to remove TOC’S prior to adding chlorine, thus greatly reducing the formation of trihalomethanes (THM) and haloacetic acids (HAA) IET’S Electrocoagulation kills virus, cysts, and coliform bacteria; eliminating one of the largest problems with water contamination that face many communities The sludge formed during the use of IET’S electrocoagulation is easier to handle and to dewater due to the absence of chemicals and bound water Finally, the sludge has been repeatedly tested and proven to be leachant-free; thus ensuring sludge doesn’t repeatedly dissolve in the water again Effectiveness of IET’s Electrocoagulation Technology 11 Systems are available in a wide range of sizes, from portable Emergency Drinking Water Unit, to permanent installations with over 10,000 gallons per minute of capacity Removes arsenic from drinking water-lined to cancer of bladder, lungs, and skin Removes pesticides, complex organics, and suspended solids Effective breaking of oil/water emulsions Removes coal fines and slurry from process water Waste water treatment to eliminated hog, cattle, and poultry sewage lagoons Replacement of chemical flocculants in water treatment plants Pre-treatment of salt, or brackish, water before filtration Proven treatment of landfill leachate Nataprene 12 What is Nataprene Nataprene is a proprietary, premium-grade, high performance TDI-PTMEG polyether polymer advanced material with extreme versatility which was formulated and developed by Marnat Industrial Company, LLC It contains urethane groups and is created by reacting isocyanates with polymers and chain extenders. By varying the nature of these components, many properties can be created for variety of applications Performance and use Has outworn ordinary rubbers and plastics, often by a factor of 8:1 Products are distinctive with respect to their abrasion and corrosion resistance as well as it’s load-bearing capacity and hardness Offers high-impact resistance, elasticity, translucence, and high resistance to oils, ozone degradation, and gamma ray radiation Is used in such industries as power, utilities, sand and gravel companies, pulp and paper processing, mining, marine, and aeronautics IET’s EC113 Concrete Treatment 13 The Deterioration of Concrete: As concrete ages and is exposed to the elements of heat, cold, carbon dioxide, chlorides and other chemicals it begins to deteriorate When these chemicals penetrate the concrete there is a drop in pH that results in the corrosion of the steel rebar. This corrosion expands to many times the size of the original steel, causing the surface to spall and exposes this corroded steel The IET Concrete Injection System: This system is able to transform corrosion active concrete to a passive state, measured by a industry accepted corrosion rate. ECII3, a water soluble proprietary formulation, penetrates and migrates through the cement micro gel pores and lining structure to the rebar level Reverses the conditions that affect the durability of concrete by protecting against freeze/thaw damage, salt scaling, and sulfate attacks Protection is provided both at the reinforcing steel and by a reduction of chloride ion ingress It reacts at the rebar surface to convert rust into a strong chemically inert protective surface Performance Traits of EIT’S EC 133 14 Establish a protective film on the rebar surface Convert rust to a hard inner shell Purge and stabilize contaminants Reduce water penetration Evaluate and/or control pH Increase compressive strength Provide resistance to acid Substantially reduce porosity Increase hardness Increase surface adhesion Seals micro-cracking IET – Principal Biographies 15 Bob Gorley Roger Kolb F. William Gillmore Eugene Markovics – Nataprene Anthony Fiasco & Robert Walde – EC113 Concrete Treatment Financial Projections – Waste Gasification & Electrocoagulation 16 Year 1 Year 2 Year 3 Year 4 Year 5 IET - Sales Revenue Thermal Waste Gasification Technology (WG) $ Electrocoagulation Water Treatment Technology (EC) $ Equipment & Material Costs $ 52,000,000 $ 25,000,000 $ 33,500,000 $ 150,000,000 $ 50,000,000 $ 90,000,000 $ 250,000,000 $ 75,000,000 $ 147,500,000 $ 350,000,000 $ 100,000,000 $ 205,000,000 $ 500,000,000 150,000,000 295,000,000 Net Revenue $ 43,500,000 $ 110,000,000 $ 177,500,000 $ 245,000,000 $ 355,000,000 General & Administrative Office & Rent Sales & Travel Marketing Materials Legal & Accounting Misc. Expenses Salary - Existing Management Team Bob Gorley - CEO Roger Kolb - Waste Gasification Engineer William Gilmore - Electrocoagulation Engineer Salary - Personnel Requirements COO Senior Project Engineer Project Engineer CFO Admin - Office Manager/HR Admin - Office Support V.P. of Sales & Marketing Sales Associate Sales - WG Service & Support Sales - EC Service & Support Sales Assistant $ $ $ $ $ $ 60,000 120,000 250,000 250,000 150,000 250,000 120,000 150,000 500,000 250,000 250,000 500,000 120,000 150,000 500,000 250,000 250,000 500,000 120,000 150,000 500,000 250,000 250,000 500,000 $ $ $ 200,000 $ 120,000 $ 120,000 $ 200,000 $ 120,000 $ 120,000 $ $ $ $ $ $ $ $ $ $ $ $ 125,000 75,000 100,000 65,000 100,000 60,000 30,000 250,000 150,000 120,000 150,000 65,000 55,000 200,000 120,000 120,000 120,000 60,000 Total Expenses $ 2,075,000 $ 3,620,000 $ Net Profit (Pre-Tax) $ 41,425,000 $ 106,380,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 120,000 150,000 500,000 250,000 250,000 500,000 200,000 $ 120,000 $ 120,000 $ 200,000 $ 120,000 $ 120,000 $ 200,000 120,000 120,000 250,000 150,000 120,000 150,000 65,000 55,000 200,000 120,000 120,000 120,000 60,000 250,000 150,000 120,000 150,000 65,000 55,000 200,000 120,000 120,000 120,000 60,000 $ $ $ $ $ $ $ $ $ $ $ 250,000 150,000 120,000 150,000 65,000 55,000 200,000 120,000 120,000 120,000 60,000 3,620,000 $ 3,620,000 $ 3,620,000 173,880,000 $ 241,380,000 $ 351,380,000 $ $ $ $ $ $ $ $ $ $ $ International Environmental Technologies Project Pipeline – Waste Gasification & Waste Gasification-To-Energy 17 PROJECT DESCRIPTION LOCATION CLIENT QUOTED PRICE PROJECTED GROSS PROFIT/TERMS Waste Gasification Dixie County, Florida Dixie Waste Serives, Inc. $5.25 million $2 million 1 STATUS/NOTES - All permits issued by the state of Florida and Dixie County - Contract executed 33% at initiation of contract 150 tons per day - All Due Diligence completed - In process of obtaining funding 2 Waste Gasification Ensenada, Mexico Tratamientos Ambientale de Scorpion, S.A. 800 tons per day - Land owned and improvements $47 million $11 First Phase (200 tons per day First Phase) $23 million $5 million First Phase 33% at initiation of contract 3 under construction - Contract signed - Permits partially received, balance expected within 30 days - Site owned; Funding in place Gasification to Energy Italy E.J. Greensystem, S.R.L. $10 million $5 million - Pushing to finalize contract and 33% at initiation of contract - Italy has mandate for this type of fund $600,000 pilot plant at site 100 tons per day (First out of 16 plants in process) 4 Gasification to Power 1000 tons per day plant with significant financial rewards Bucks County, Pennsylvania Monangahella Power Valley - Proposal agreed upon $100 million $50 million - Contract & Funding in process - Company underwent state funded $2 33% at initiation of contract million study of technologies in this area. IET chosen as best by a wide margin. International Environmental Technologies Project Pipeline – Waste Gasification & Waste Gasification-To-Energy 18 5 PROJECTED GROSS PROFIT/TERMS Government of Turkey Daniel Park, Agent $20 million $10 million E.J. Greensystem, S.R.L. $600 million LOCATION CLIENT Gasification to Power Turkey 200 tons per day 6 QUOTED PRICE PROJECT DESCRIPTION Gasification to Energy $300 million Shadi Arnita of Kuwait Kuwait Has first right to handle this $36 million project. Funded by Kuwait. 8 Haiti Government of Haiti/ World Bank Waste to Energy Projects Waste to Energy $150 million Abu Dhabi Government Environmental Committee from the Iraq War - Haiti pushing to move ahead - Funding in place from World Bank 33% at initiation of contract U.A.E., Abu Dhabi - Projects to process waste piled up - Multiple projects $300 million $160 million 1600 tons per day 10 $18 million payback from electricity purchase 33% at initiation of contract 3000 tons per day 9 government mandate. Government allows high return and quick 33% at initiation of contract 600 tons per day + Waste to Energy Projects for the plant - 15 separate projects in Italy under Italy (16 projects) Waste Gasification - Government has funding in place 33% at initiation of contract 7752 tons per day 7 STATUS/NOTES $80 million 33% at initiation of contract as a priority project - This area needs this technology and governments are pushing - Funding in place - Brazil in significant push for waste Porto Lasa, Brazil Government of Brazil $220 million $110 million and water projects - Representative owns significant International Environmental Technologies Project Pipeline – Electrocoagulation Water Treatment 19 1 PROJECT DESCRIPTION LOCATION CLIENT QUOTED PRICE PROJECTED GROSS PROFIT/TERMS Pre-Treat Drinking Water Haiti Government of Haiti World Bank $50 million $35 million STATUS/NOTES - Prime Minister of Haiti and Environmental Minister pushing to meet IET together with 33% at initiation of contract World Bank in Washington D.C. - $80 million already set aside for Water Projects in Haiti by World Bank 2 Pre-Treat Drinking Water Brazil Government of Brazil $90 million $63 million - Negotiations in process with government - These systems are necessary to help meet 5000 + Separate Systems 33% at initiation of contract new water standards which must be in place by the end of 2008 - IET needs to bring a demo system to Brazil to finalize the deal 3 Waste Water Treatment Plant Panama City, Panama Government of Panama with funding from Trust $50 million $35million - IET is the most competitive bidder with 33% at initiation of contract 4 Waste to Energy Plants All Locations IET - Funding in place $20 million the best technology $14 million - This is part of quoted price for Waste to Energy 33% at initiation of contract (prevent scaling/mineral deposits in boilers) 5 Pre-Treatment and Waste Water Treatment India Hydro Labs/ Government $200 million (Multiple Systems) $140 million (Total Work) 33% at initiation of contract 6 E.C. Water Treatment Italy E.J. Greensystem S.R.L. $50 million $35 million 7 Waste Water Treatment (Oil & Sand Water) Canada Creative Energy $200 million $140 million - Significant demand in India from multiple clients - Unlimited projects International Environmental Technologies Project Pipeline – Key Developments 20 Golder Associates is the top environmental engineering, permitting, and construction company in the world with 130 offices in 26 countries. Golder handled the engineering due diligence and permitting with Dixie County Florida and the Florida Department of Environmental projection. They have been so impressed by the technology, they want to represent IET world-wide E.J. Greensystem, S.R.L. in addition to working with 16 current projects in Italy wishes to represent IET for all of Italy and Mediterranean Basin Representatives of Haiti and the World Bank including the Prime Minister and the Environmental Minister have selected IETs Waste Gasification and Water. Technology and funding is in place from the World Bank M.J. Aslan Environmental Engineering with significant relationships in the Middle East and Europe wishes to represent IET in the U.A.E., Abu Dhabi, Europe, and North Africa rd 3 Party Verification of Technology 21 The following list of IET’s WG/TO technology benefits were taken directly from 3rd party statements after a careful study of the process commercially proven with mixed waste streams particularly MSW and waste tires requires minimal presorting and processing of waste including tires environmentally appropriate - yielding low air emissions well within EPA and EU standards and sterile ash recapture of recyclables after gasification reduces material handling requirements relatively low operating costs robust primary cells with relatively few moving parts very good utilization of the feed stock with high yield of useable energy minimal waste disposal requirements, i.e., approximately 10% of incoming volume modular, scalable and easily expandable to accommodate increased demand