1. Desalination & Related Water Technologies - Selling to a U.S. plant Maritime Business & Technology Summit November 29, 2011

2. PROPRIETARY & CONFIDENTIAL - 2011 Nanocomposite RO Membranes Higher Flux Best-In-Class Salt Rejection Standard Module / Easy Retrofit NSF Standard 61 Certified 2 First significant advancement in RO membrane technology in 25+ years 4 Patents 7 Patent Applications 12 Countries protects Nanocomposite Membrane Technology

3. PROPRIETARY & CONFIDENTIAL - 2011 Nanocomposite Membranes Lower the Cost of Desalination 3 or

4. PROPRIETARY & CONFIDENTIAL - 2011 NanoH 2 O Timeline

5. PROPRIETARY & CONFIDENTIAL - 2011 $2 Billion Core RO Market – Only 3 Incumbents Annual Core RO Membrane Module Revenue Opportunity 2010 - 2016 5 Source: DesalData (GWI) and NanoH 2 O SWRO BWRO Other RO NanoH 2 O Goal: To Become the 4 th Major RO Membrane Supplier

6. PROPRIETARY & CONFIDENTIAL - 2011 U.S. Market: Small Brackish & Ground Water Plants 6 But Trends May Change That: Shale Gas PPCP Regulation Climate Change

7. PROPRIETARY & CONFIDENTIAL - 2011 U.S. SWRO Market = Caribbean / C. America OEMs 7

8. PROPRIETARY & CONFIDENTIAL - 2011 California as an Example of U.S. SWRO 8 Source: Water Desalination Report Global EPCs and Engineering Consultancies are key Permitting and Special Interest Groups affecting timeline Hard to commit significant resources at this time

9. PROPRIETARY & CONFIDENTIAL - 2011 Being a SoCal RO Membrane Company… Frequent Flyer Permitting, Utilities and Taxes are Challenging Experienced Workforce Any Expansion will Need to Consider other Geographies 9