Technical Presentation November 2006

2 Who Are We? We are the leading provider of Next Generation Water Disinfection Solutions We bring a revolutionary disinfection technology Hydro-Optic Disinfection (HOD): n Environmentally friendly n Simple to use and maintain n At a low cost of ownership n Really does the job…

3 Company Profile n Founded in March 2003 n Raised $30M to date from leading investors n HQ in Israel – home to renowned innovation in high-tech and water technologies n 50 employees and growing n Seasoned water sector management n Interdisciplinary team of top scientists and engineers n Comprehensive Intellectual Property Portfolio n Proven the technology in industrial installations

4 Water Disinfection Technologies Today Extremely high operational cost; Intensive maintenance Reliable; Wide acceptance Heat exchange (pasteurization) IssuesAdvantages Microbial Kill 1-3 log range; Deposits & fouling of quartz sleeves; High maintenance; Questionable reliability; Issues with monitoring and control Environmentally Friendly; Acceptable Conventional UV Expensive to buy & operate; Stops microbes only above certain threshold; Sensitive to chlorine; Backwash treatment and biofilms breed hidden costs over time Reliable; Wide acceptanceMembranes Disinfection by-products (Bromates); Hard to control with water quality flux; Difficult working environment; Lots of hidden costs Effective; Accepted for some industriesOzonation Disinfection by-products; Taste in food; Ineffective against Cryptosporidium & Giardia; Creates issues for downstream processing - membranes Relatively cheap; Widely used and acceptedChlorination

5 HOD’s Out-of-the-Box Design Light beams represent how the fiber optic Total Internal Reflection principle works Out-of-the-water light sources 1 Air cooled dry chamber 2 Dual sensor configuration for accurate monitoring 3 Central quartz chamber traps light photons 4

6 Technology Principle n “The Liquid Wave Guide“ Same “Total Internal Reflection” principle as in optical fibers

7 Operation Principles HOD system cross section Quartz Window Lamp status monitors Water transmission monitor AIR WATER * Medium Pressure High Intensity Air Cooling Quartz Tube Air Block MPHI* UV Light Source Reflector

8 Microbial contamination in test point of dairy water system The Atlantium “Total Kill” Solution

9 Conventional UV Microbes may escape UV Many lamps, light cannot be uniform

10 The HOD Advantage I: Performance and Reliability HOD System WATER Conventional UV Heat generates sleeve deposits; Requires frequent maintenance Uniform dose distribution Non-uniform dose distribution

11 HOD System WATER 4 minutes replacement; No system downtime Cumbersome lamp & sleeve replacements; System down Risk of glass and mercury droplets into the water The HOD Advantage II: Simple Maintenance Conventional UV

12 WATER Conventional UV Measuring UV light through water (light, sleeve fouling, and water) Direct measurement of UV source Additional detector for water turbidity The HOD Advantage III: Monitoring and Control HOD System

13 The HOD Advantage III: Monitoring and Control State-of-the-art set up, control & monitoring

14 The HOD Advantage III: Monitoring and Control Configure validated dose

15 The HOD Advantage III: Monitoring and Control Automated EPA reporting

16 R-Series models HOD R – 200 DL modelHOD R – 200 SL modelHOD PR – 20 model

17 Overview: Markets & Products n R - models covering flow rates from 10 – 300 m 3 /hr n Industrial and Municipal markets: n Municipal Drinking water Water Re-use Desalination n Industrial Food & Beverage Aquaculture Power plants Pharmaceuticals Other

18 Product Water FireWall Process Water Pasteurization Industrial Markets: F&B Applications

19 HOD “FireWall ” The ideal solution for the Food & Beverage industry n Inactivate all harmful microorganisms n Maximize plant water quality n Minimize the use of chemicals and avoid residual carcinogenic substances n Save on electricity, chlorine and labor costs n ROI in less than one year

20 “HOD FireWall” at work: TNUVA E.T. – One of the World’s Largest Dairies 3 x 100 m 3 /hr Atlantium HOD Units External View of Atlantium’s Facility Note Far Sampling point – 500 m’ down the line from the HOD system Microbial contamination in test point of dairy water system

21 Pasteurization Up: Conventional Pasteurization system Down: Atlantium’s HOD PR - 20 unit n HOD PR – 20 unit n Validated 9 Log reduction n Significant savings on energy and operation costs

22 Pasteurization: The Atlantium Advantage Atlantium’s Solution Conventional Pasteurization 0.05 Euro per m³ energy cost1-1.2 Euro per m³ energy cost Simple & easy maintenanceMajor maintenance requirement Almost no system downtimeSignificant system downtime Small FootprintLarge Footprint

23 TOC & THMs Reduction n Efficient way to reduce TOC & THMs: Creation of “radicals-saturated” zone All water are exposed to “radicals-saturated” zone Continuous generation of radicals Utilization of entire HOD reactor’s chamber for chemical reaction n Reduces chlorine usage to a minimum n Cost Effective: Eliminated the need for PAC and UF Membranes Reduces O&M costs

24 Case Study: Site installation, Dresden – Germany HOD effect on average chlorine presence in tested water

25 Industrial Markets: Aquaculture Applications

26 Fish Hatcheries n Increases fish growth rates n Increases survival rates n Minimizes drugs, chemicals and antibiotics n Improves FCR (Fish Conversion Rate) n Environmentally friendly

27 Case Study: Pinar Fish Hatchery n Increase in survival rates: Sea Bream: 100% Sea Bass: 50% n Reduce Antibiotics use by 90% n Reduced full time maintenance person n ROI in less than 4 months n Customer ordered 2 nd unit

28 Summary n Leader in innovative water disinfection solutions: Introducing Hydro-Optic Disinfection (HOD) technology A Revolutionary primary disinfection method n Dozens of successful industrial installations n Comprehensive Intellectual Property (IP) portfolio Seasoned management, academic and R&D staff Registered and pending patents worldwide n Operations in Europe, US and Asia – over 20 countries worldwide n Partnering with reps/ distributors and water companies for sales, installation, support, distribution, and R&D projects

29 Most important … The Factor Sleep Well At Night (SWAN)

Atlantium Ltd. Har Tuv Industrial Park POB 11071, Bet Shemesh 99100, Israel Tel : Fax : THANK YOU!