Helping Innovators Innovate deTerra ® Biobased Polymers Next Generation Materials for Durable Applications Innovation Takes Root 2012 Dr. Jeffrey Cernohous CTO, Chairman and Founder

Helping Innovators Innovate Presentation Overview Brief overview of Interfacial Solutions Introduction to deTerra® Biobased Polymers Next Generation deTerra® Biobased Polymers

Helping Innovators Innovate IFS Vision Statement Be the best in class provider of polymer material and process solutions to the plastics industry by: 1.Developing proprietary solutions that offer undeniable value propositions 2. Providing efficient technology development and transfer solutions 3.Operating with the highest level of integrity, honesty, and confidentiality 4. Attracting and retaining world class people committed to our mission.

Helping Innovators Innovate Our Mission: Helping Innovators Innovate Our Strength: Delivering Material Science Solutions Quickly Our Record: >$300MM of Customer Sales Enabled in Several Markets Our Business: Flexible Business Models to Meet Customer Needs Products and Contract Services  Contract Melt Processing Services  Contract Laboratory Testing Services  Custom Compounding  IFS Products (deTerra®, Xusto®, Moisture Scavenger) Intellectual Prop. Creation & Development  Contract Research & Development  Contract Manufacturing Scale-Up  Manufacturing Modeling and Transfer  Patent and Know How Licensing

Helping Innovators Innovate Todd Sarnstrom, VP Operations B.S. Computer Sci., B.A. Bus. Mgmt. 5+ Patents Issued 25 yrs production and tech. mgmt 5 yrs Anagram, 15 yrs Jostens Jeff Cernohous, Founder & CTO Ph.D. & B.S. Organic Chemistry 30+ Patents Issued 8 yrs Interfacial Solutions President 5 yrs 3M Technology Development Adam Pawloski, Tech. Director Ph.D & B.S. Chemical Engineering 10+ Patents & 35+ Publications 10+ yrs matls dev., multiple industries 3 yrs with Interfacial Solutions Gregg Bennett, CEO & Member Ph.D. Polymer Sci. & B.S. Ch.Engr 25+ Patents Issued 20 yrs 3M incl. VP R&D / Clinical Affairs IPD & Genl. Mgr. of 3M Turkey Kristi Cernohous, QC Director B.S. Chemistry and Food Science 7 yrs Forensic Evidence – MN BCA 2 yrs Quality Engineer – General Mills Extensive method & instrument dev. Brian Szymanski, CLO & Member Juris Doctor & B.S. Ch.Engr Registered Patent Attorney 17 yrs IP, incl. 3M Asst. Chief Counsel 10 Yrs Chemical Mfg

Helping Innovators Innovate Headquarters: River Falls, WI (45 minutes from Minneapolis, MN) Founded: 2003 Employees: 30 (14 Technical Degrees, 4 Ph.Ds) Facility: 40,000 sq. ft. Website:

Helping Innovators Innovate Technical Compounding 2 lb Lab Samples 40,000 lb Truck Loads 3/4” Single Screw Extruder 2 x 27mm Lab Twin Screw Extruders 38, 50, 58mm Twin Screw Extruders Batch blending Side stuffing Liquid injection Super Critical Foaming Moisture sensitive materials Reactive Processing

Helping Innovators Innovate Materials Characterization Thermal Analysis DSC TGA DMA HDT Molecular Structure GPC HPLC FTIR SEM Rheological Analysis Physical Characteristics Color Moisture Specific Gravity Particle Size Flame Retardant Testing

Helping Innovators Innovate Sample Preparation Pellets Injection Molded Parts Blown Films Cast Films Extruded Sheet Foamed Sheet Foamed Pellets

Helping Innovators Innovate Materials Expertise Polymers Natural Fibers and Fillers Adhesives Coupling Agents Compatibilizers Polymer Processing Additives Flame Retardants Moisture Scavengers Nanoparticles Biopolymers Foaming Agents Process Expertise Twin Screw Extrusion Reactive Extrusion Super Critical Foaming Cast Films and Sheet Blown Films Injection Molding Pelletizing Grinding Foaming Process Development Costing Our Mission: Helping Innovators Innovate

Helping Innovators Innovate Our Mission: Helping Innovators Innovate Minimize Scale-Up Risks Business Model Understanding Financial Modeling Plant Design Pilot Scale Production Toll Manufacturing Captive Production Models Technology Transfer

Helping Innovators Innovate Our Customers 2 Fortune 50 Companies 5 Fortune 500 Companies More Public Disclosures Soon Our Typical Customer MM annual sales Privately held Profitable Growth Oriented R&D appreciation Complimentary core competencies Fundamental material science need Announced Collaborations

Helping Innovators Innovate What We Promise Rapid product development and prompt responses Full service idea to production capabilities – minimize risk Best in Class Polymer Science Materials and Process Expertise Breadth and Experience across multiple markets Strong Strategic Alliances and Connections Strong Ability to “Cross fertilization” Technologies

Helping Innovators Innovate Our Branded and Proprietary Products deTerra ® Biobased Polymers Xusto ® Natural and Renewable Fiber Composites Interfacial Solutions Moisture Scavengers

Helping Innovators Innovate deTerra® Biobased Polymers

Helping Innovators Innovate deTerra® Biobased Polymer Product Line deTerra ® is the trade name given to a series of biobased hyperbranched polymers developed and manufactured by Interfacial Solutions Based on polylactic acid (PLA) polymer The deTerra ® product line is based on high biobased product content (> 80%)

Helping Innovators Innovate deTerra® Product Line Initial grade developed for building and construction industry – non-halogenated FR grade to meet UL 723/ ASTM E-84 class 1/A FR grades to meet UL-94 class V-0 rating Considered as a “green” alternative to PVC and FR grades of PA, PP, and ABS High impact grades Extrusion and molding grades

Helping Innovators Innovate deTerra® Biobased Polymers Currently sold or sampled into Molded articles Extruded articles Flame retardant articles LEED certified buildings Consumer goods Appliances Electronics Others Example articles made using deTerra®

Helping Innovators Innovate deTerra® Characteristics Reactive extrusion process Hyper-branching chemistry Major increase in Mz and Mw Patents pending Tailored rheology deTerra® Molecular Characteristics

Helping Innovators Innovate Melt Strength Natureworks 2003DdeTerra® XP759

Helping Innovators Innovate deTerra® Biobased Polymers Next Generation

Helping Innovators Innovate Key Development Opportunities-PLA Improving impact strength Improving UL94V FR performance Improving melt strength Improving heat resistance (HDT) Expanding to other biopolymers (PHA)

Helping Innovators Innovate Impact Strength-Unnotched Izod Unnotched Izod (ft-lbs/in) PLA deTerra® FR Wall Protection deTerra® FR Molding deTerra® High Impact

Helping Innovators Innovate Impact Strength-Notched Izod Notched Izod (ft-lbs/in) PLA deTerra® FR Wall Protection deTerra® FR Molding deTerra® High Impact

Helping Innovators Innovate UL94 Flammability GradeBiobased Content (%) Specific Gravity (g/cc) E84 Results UL94 V Results UL94 H Results Limiting Oxygen Index PR Flame Spread, <70 Smoke Index V2HB24 XP Not Determined V0HB28 XP Not Determined V2HB23 Ingeo 2003D Not Determined Not RatedHB22 High biobased content for all FR deTerra® grades Comparable specific gravity to PLA Outstanding E84 fire ratings and characteristics V2 and V0 deTerra® options for molding and extrusion LOI results correlate with flame performance observed

Helping Innovators Innovate deTerra® Biobased Polymer Property Summary GradeBiobased Content (%) Specific Gravity (g/cc) Flexural Modulus (psi) Flexural Strength (psi) Notched Izod Impact Strength (ft-lbs/in) Melt Flow Index (g/10 190C, 2.12 Kg) PR ,00012, XP ,00011, XP ,0008, XP ,00012, Ingeo 2003D ,00014, FR deTerra® grades offer excellent flexural strength and modulus Comparable specific gravity to PLA The impact strength for deTerra® FR grades are improved vs PLA Injection molding grade has impact performance comparable to PVC deTerra® melt flow index/rheology can be tailored for extusion or molding

Helping Innovators Innovate Future Development Challenges

Helping Innovators Innovate Challenge 1-Thermal Resistance

Helping Innovators Innovate Challenge 3-Impact Strength

Helping Innovators Innovate Challenge 2-FR + Impact MaterialNotched Izod Impact (ft-lbs/in) PVC~15 PETG~10 PR146~1

Helping Innovators Innovate Challenge 3-Economics

Helping Innovators Innovate Next Steps Other FR Biopolymers (PHA) Improved FR/Impact Combo Improved Temperature Resistance