1 Investor 27 Oct 2008

2 Overview i2O offers a solution to huge problem of water leakage Managed service with recurring revenue Seeking £4m to reach £45m of sales and £19m of operating profit by 2013 i2O system provides integrated data, water quality control, reduction in energy use etc Addressable market for i2O is £623m in UK and £2.5 billion globally by 2013

3 Causes include Age and corrosion Water pressure surges Traffic loading Ground movement Low temperature Average repair time is 8 days at a cost of £600 - £2000/repair On average 30% of bursts are unreported 70% of customer complaints are due to bursts Mains systems in UK have on average 200 mains bursts per 1000km pa 400 service pipe bursts per100k properties pa Bursts are a major problem Burst are a major problems to consumers & water companies

4 The i2O solution

5 Typical distribution network Trunk main DMA - District Meter Area PRV - Pressure reducing valve Pump Reservoir Water treatment DMA PRV Critical point

6 High demand ie daytime Current pressure management set up-1 Legal minimum pressure 15m PRV is set for the worst case: to ensure the minimum pressure of the critical point during peak demand, but at other times of day (night) it is unnecessarily high DMA fitted with standard PRV

7 Low demand i.e. nigh time Current pressure management set up-1 Legal minimum pressure 15m PRV is set for the worst case: to ensure the minimum pressure of the critical point during peak demand, but at other times of day (night) it is unnecessarily high DMA fitted with standard PRV

8 P3 Sensor PRV INLETCRITICAL POINT P1P2 P3 i2O system overview Web GUI Algorithm i2O server Data analysis Data Control Alarm Controller APV

9 Sales pipeline Substantial multi-year contracts through direct sales approach Large global opportunity in water utilities Order Received Trials in Progress Trials Agreed In Discussion Prospect

10 i2O development roadmap PRV condition monitoring New burst detection Leakage monitoring Network performance monitoring Advanced leakage monitoring Leakage location Pumping station control Turbidity monitoring Chlorine monitoring Dynamic pressure management Browser based reporting and interface Burst & alarms Network sensors Benefits Real time network visibility Dynamic network management & control Advanced network analytics Energy & cost savings Network integration Capability Pressure management Intelligent utility network

11 Growing addressable UK market

12 Defensible competitive position Sensor Companies Point solution Partnership opportunities Direct Pressure Management Small with poor products Limited networking PRV Manufacturers Focus on hardware Traditional engineering mindset with limited software or networking expertise i2O i2O is developing an intelligent utility network solution that integrates hardware, software and networking functionality for water utilities Competing solutions are point solutions without integration or analytics

13 Investor 22 Oct 2008