Revenue-Based Recycling TM A Presentation for: © 2008 Round2 Technologies, Inc.

Let’s Talk about Waste e-Waste –Undefined Term –General Application: Consumer & Business Electronic Equipment Near or at End of Useful Life –Global Topic WEEE, ROHS IAER, Texas Recycling Alliance, ISRI –Best Practice Support –Unregulated Industry

State of the Waste… 2005 – –21 Million PCs Obsolete in US –2.63M Tons of e-Waste Disposed in US Only 330,000 Tons Recycled! The LANDFILL Where did the other 2.3M Tons go?? Carnegie Mellon and US EPA data

Corporate Recycling Costs 3 Levels of recycling commitment Increasing waste streams to increase revenue Incentive? –Revenue –PR

Vendor Challenges Vendor Challenges Silicon Wafer Scrap Solder Paste and Wipes Solder Dross Ic Trays, Tubes, Reels Non-ferrous and Precious Metals CRT’s and LCD’s Production Equipment

Silicon Wafers Silicon Wafers Patterned vs. Non-patterned Resistivity –Higher is better! Whole or Crushed –Single piece recovery –Crush / Granulate Onsite vs. Partner site destruction Market Opportunity –Market shrinking over next 6 months

Solder Dross Solder Dross Lead vs. Lead Free What to manifest? –Solder Wipes, Solder Paste –Level of Generation Complying with ROHS –What cost to comply? Equipment Changeover New waste streams

Ic Trays, Tubes and Reels Storage Issues Weight Issues Recovery? Answer: –Reuse –Recycle

Production Equipment Resale Value –New Markets –Service Parts Markets –Partners are the Key Recycling Value –Precious Metals –Non-ferrous Metals

e-Waste Problems Defined Political Solidarity –Lack of National Plan –Competing Strategies Advanced Recycling Fees Producer Responsible Programs –Classification of e-Waste –Lack of Universal Certification/Best Practices

Problems Defined (cont) Insufficient Financial Incentive –Reduce the Cost Concern –Eco-Commerce –Drive Desire towards Responsibility

The Solution Revenue-Based Recycling TM Programs –Paradigm Shift 2 Goals: –Simple –Free (or Better!) Simple: Burden of Work transferred to e- Recycler Free (or Better!): Cost center transferred to Revenue center

Identifying Partners Local vs. National –Global? Certification and Best Practice –EPA Certification does not exist Insurance Physical Location(s)

Identifying Partners (cont) Processing Capability –Insource vs. Outsource Auditable Downstream Expertise & Knowledge of Commodity Markets

Case Study Client: Chip Manufacturer –5 th Largest Semiconductor Company in the world –2006 Revenues of $10B Problem: Production Scrap; Manufacturing Waste; IT Equipment; Production Equipment –Multiple Locations –Environmental liabilities –Desire to recapture cost from scrap

Case Study (cont) Solution: Revenue-Based Recycling Program –e-Recycler integrated into customer process –Color-coded collection bins –Recycling signage –Full Logistics Services from each location Results: –Reduced waste = Reduced landfill –Revenue Return: 2007 in excess of $180k

Q&A Thank you! Jeff Remakel Round2 Technologies, Inc. (512)