Waste-to-Energy Technology Overview Presented by: Innovative Logistics Solutions, Inc. 1 Como Circle Palm Desert, CA 92211 Tel (760) 568-9369 Email: r.diederich@ils-partners,com ILS, Inc copyright @ 2003 Rev 1.3

Background Innovative Logistics Solutions, Inc. has partnered with The Pyromex Group, a Swiss company, to introduce a revolutionary new waste management and power generation technology to North America The thermal oxidation, gasification technology will significantly change the way municipalities and private disposals companies deal with both toxic and non-toxic waste The technology creates a significant business opportunity while being environmentally responsible This presentation provides an innovative approach to the business of Waste Management and Power Generation

Highlights Provide a thermal oxidation, gasification system that completely sanitizes waste and destroys toxic components and gases at ultra high temperatures, while generating no harmful emissions or toxic reside. Convert organic waste material into “pyrogas” which is then used to generate electricity through a profitable, environmentally safe process Safeguard human health and the environment by using the latest technology to provide efficient and cost-effective, environmentally-friendly waste management Provide the solution for two of North America’s fastest growing problems, Waste Management and Power Generation

Benefits Eliminates solid, liquid and air pollution problems related to toxins generated from waste disposal Reduces the waste residue to 1% of its original volume thereby minimizing landfill requirements Generates electricity with “pyrogas” and heat which are by-products of the process Resolves numerous problems associated with waste disposal and waste management Provides a significant business opportunity

Waste Statistics This picture illustrates the quantity of trash produced by an average American family per year (Approx. 3 tons)

Waste Facts The U.S. generates roughly 262 million tons of waste per year The average daily waste volume is 652,000 tons per day California generates nearly 38 thousand tons of solid waste per year Theoretically if the Pyromex technology was in wide use, no fossil fuel electrical generation would be required Currently much of this waste goes to the limited number of landfills and requires expensive handling to minimize toxic residue New environmental programs may require extensive increase in waste handling fees

Existing Disposal Methods Landfills require significant land areas Landfills contaminate the ground water and the environment without expensive waste barrier methods Landfills and incineration create air pollution Environmentally friendly landfills and incineration require expensive filtering and control processes Typically incineration creates highly toxic residue ash

Pyromex Benefits Treatment of waste materials, not simply a reduction in volume! Recycling of valuable materials and energy recovery, not only waste treatment! Organic material by-product is 100% reduced to “pyrogas” which is typically used to generate electric power! Non-organic material is reduced to 1% of original volume, which can then be used for building material! A profitable business, not just a break-even scenario! An environmental education center, not just a waste treatment plant! The Pyromex process meets and exceeds highest and most severe environmental rules and regulations!

Pyromex Technology Ultra-High temperature gasification process of waste material Processes toxic, non-toxic, low radiation and sludge waste Generates NO toxic residues or emissions Non-organic by-product residue is a non-toxic Basalt like material that is usable as a building material Organic by-product is “pyrogas” which is typically used for electricity generation Great efficiency in recovering 100% of the energy contained in waste materials

Quote from Santa Barbara County Supervisor …”Several waste recovery and energy conversion technologies are now emerging throughout the world, many of which transform waste into products such as biomass boiler fuel, biofuels, industrial chemicals, auto fuel cells, and synthetic gasses. Although there are significant challenges associated with implementing these technologies, building such a system could conceivably reduce our dependence on landfilling by more than ninety percent overall”… … “These were state-of-the-art solid waste facilities that are considered the worlds most advanced in their design, application and operations of technology that in fact, recover and recycle 100% of the waste stream. During the three-day study we viewed components of the entire waste management system including the design and manufacturing of the technology as well as the application and operation. “ “I am committed to evaluating the practicality, effectiveness and feasibility of implementing waste conversion technologies. The October’s field study gave us a real world view of the existing technology and its practical applications. “… Source: www.gailmarshall.org/Solidwasteposition.htm

Pyromex Technology The Pyromex ultra-high temperature gasification system is a unique, patented technology for the safe disposal of waste At the same time it offers maximum benefits from the calorific values contained in the organic part of the waste. Pyromex systems meet all environmental regulations and guidelines issued by EUC and the FED A space-age development designed by the leading scientists from the East and the West. The Pyromex technology is scalable from 10 to 500 tons/day Pictures of operational plant in Germany

Induction System The distillation process involves the application of intense indirect thermal energy in the absence of oxygen which reduces: The organic material 100% to a combustible gas The inorganic content to a non-hazardous, non-toxic, non-leachable, basalt-like residue Resulting in: Maximum reduction in volume Production of energy rich gases Excellent waste to energy potential Pictures of 25 ton per day system operational plant in Germany

Potential Marketplace Landfill disposal operators Municipalities and regional government agencies Indian Nations Private Waste Disposal Companies Outsource disposal services for others Hospitals, Corporations, Commercial and Military ships Market excess electrical power

Next Steps Conduct a no-cost feasibility study to determine the if a justification and ROI are acceptable Investigate lease/finance program Determine sizing requirements Visit an operational facility (optional) Present proposal that defines costs and business justification

Manufacturer Opportunity Acquire exclusive manufacturing rights for the North America market Become a market leader in environmentally responsible waste to energy technology Possible sole source vendor contact due to state regulatory approvals Develop leasing / financing program to enhance sales Demonstrate leadership in environmentally sound technology through profitable venture Potential for a 400% license valuation increase over the next 2 to 3 years

Client Opportunity Create a Waste Management Center which: Offers services to municipalities, regional government and private disposal companies Generates revenue from disposal contracts Generates revenue from power generation Provides outsourcing services for waste processing Provides leading edge solutions to age old problems Tax credit potential due to environmental sensitivity

Indian Nation Opportunities Provide leadership and vision for Waste Management and Power Generation solutions Develop diverse sources of revenue Establish independence from power utilities Offer services to surrounding communities Lease and operate systems for local and state municipalities Actively demonstrate profitable, environmentally friendly business Expand sovereign nation opportunities