ChromaID Technology · Current Method Chroma ID Method CHROMA ID TECHNOLOGY ©2013 Visualant CONFIDENTIAL ChromaID is superior because: ... Cosmetics Paint Environment Markets 12

Nature’s Color Identifier™

ChromaID™ TechnologyA Cost-effective, Scalable Solution for

Identification, Authentication & Diagnostics

©2013 Visualant CONFIDENTIAL©2013 Visualant CONFIDENTIAL

This presentation has been prepared by the company and includes information from other sources believedby management to be reliable. No representation or warranty, express or implied, is made as to the accuracyor completeness of any of the information set forth herein. This presentation may contain summaries of theterms of certain documents and agreements, but reference is made to the actual documents andagreements for the complete information contained herein. The information contained herein is as of thedate hereof and is subject to change, completion or amendment without notice.

This presentation contains statements, estimates and projections with respect to the anticipated futureperformance of the company that may be deemed to be “forward-looking statements.” These statements,estimates and projections reflect various assumptions made by the company concerning anticipated results,which may or may not prove to be correct. All statements contained in the presentation that addressoperating performance, future direction, management and control of company, events or developments thatare expected to occur in the future (including statements related to earnings, expectations, sales of assets,capital expenditures, or statements expressing general optimism about future operating results) areforward-looking statements. Actual results could differ materially from those reflected in the forward-looking statements contained herein as a result of a variety of factors, many of which are beyond thecompany’s control.

This presentation does not constitute an offer to sell or a solicitation of an offer to buy any security. Anysuch offer, which will be made to “accredited investors,” as defined by Rule 501 of Regulation D,promulgated under the Securities Act of 1933, must be accompanied by a Private Placement Memorandumand other documents (the “Memorandum”). The securities offered pursuant to the memorandum arespeculative and involve a high degree of risk. See “Risk Factors” herein and in the Memorandum. Thispresentation is qualified in its entirety by the Memorandum, which contains more complete informationabout the Company and the risks of investing, and the Company’s filings with the Securities and ExchangeCommission.

FORWARD LOOKING STATEMENTS SAFE HARBOR

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• Publicly traded as VSUL: OTCQB

• $6 million+ in research investment – 4 patents issued, more in the pipeline

• Began focusing on photonics in 2005 originally as a technique for matching paint color and paint codes

• Based on research by two University of Washington scientists, Professor Tom Furness, Brian Schowengerdt, Ph.D.

• Four ChromaID patents issued to date

• Acquired distribution channel partner TransTechSystems in 2010

• Sumitomo Precision Products development partner, licensee & equity investor in 2012

• Sumitomo Invested $3.25m at $0.13 on May 31, 2012

HISTORY & BACKGROUND

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Visualant’s ChromaID™ Technology

Trading Symbol OTC QB: VSUL

Corporate Headquarters Seattle, WA

Stock Price 3/15/1352-Week Range

$0.11,$0.06 - $0.20

Shares Outstanding 2/11/13 111.93M

Daily Volume (90 day avg, 3/15/13) 471,500

Market Capitalization 3/15/13 $12.09M

Full-time Employees 12/31/12 20

Fiscal Year End September 30

Accounting Firm PMB Hellin Donovan


• This is a chance to be involved with a technology that :

• Can reach into a huge number of markets

• Has the potential to penetrate deeply into these markets

• Has a very high margin business model (licensing)

• Can affect the quality of life and environment in a very positive way - Industry already wants this product

• Customers already knocking at our door

• Visualant is a winner

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VISUALANT CHROMAID IS A WINNER !


HERE’S HOW THE SYSTEM WORKS

Current Competitors Capture Visible Light Spectrum

Capture ENTIRE reflected spectrum from ultra Violet to Infra red and sends to data base

Data Base Local or in Cloud

Ultra Violet

Infra Red

Visible Spectrum

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Typical Prism-based Spectroscopy

EXISTING SPECTROPHOTOMETRY TECHNOLOGY

White light SourcePrism based Spectrophotometer

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Visualant’s ChromaID Technology

VISUALANT CHROMAID TECHNOLOGY

ChromaID Scan HeadUnique ChromaID Scan

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Our Vision and Mission is to:

• Build an industry around chromatic identification

• Use Visualant’s Spectral Pattern Matching™ technology to create a unique ChromaID™ of any substance or material

• Apply ChromaID™ technology in a wide range of identification, authentication and diagnostic applications

• To dominate the large markets needing identification, authentication, verification, quality control, etc.

MISSION AND VISION

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• Used as an authenticator, the Visualant ChromaID technology can be used to verify:

• Pharmaceuticals, access control cards, currency, liquids or almost any other item requiring validation

• Used as a diagnostic, the Visualant ChromaIDtechnology can be used to identify:

• Illicit drugs, oil in water, water in aviation jet fuel, and a multitude of medical, environmental and agricultural diagostics

THE VISUALANT TECHNOLOGY

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• Visualant’s Chroma ID technology captures thousands of data points

• Defines the unique ChromaID of every substance.

• Current methods capture a minimal number of data points

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Current Method Chroma ID Method

CHROMA ID TECHNOLOGY


ChromaID is superior because:

• It captures the nature of color - not just color

• Accuracy – up to 3400 data points per ChromaID profile

• Captures visible and invisible spectrum

• Disruptive – Very accurate, cost-effective, small flexible form factor

• Lightweight – No bulky, heavy lab-based equipment required

• No additional materials required (dyes, catalysts, holograms, etc do not need to be added)

WHY IS ChromaID SUPERIOR?

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MARKET OVERVIEW

Everything in the world has a unique machine-readable chromatic identifier and the technology of Visualant™ can read and record it.

AgricultureAuthenticationIndustry

Law enforcementMedicalMetallurgy

CosmeticsPaintEnvironment

Markets

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Visualant Is Ready to Break Into Big MarketsMarket Demand

Vis

ual

ant

Mar

ket

Rea

din

ess

1

2

3

4

5

6

7

8

9

1010. Have Sales Revenues

9. Contracts Signed

8. Active Sales Deals

7. C Level Agreement

6. Test Data Accepted

5. Product Tested/Tuned

4. Partner/Channel Identified

3. Strategy in Place

2. Customers Demand Valid

1. Business Dev in Process

DK- Development Kits CO - Color Matching SA - Security AuthenticSem - Semi Verification FP - Fruit and Produce Gam - Gaming Cos - Cosmetics UV - UV Coatings Flu -Fluids QA GA - Gas analysis Ph - Pharmaceuticals Cur Currency QA MP - Mobil platform Den - Dental Med – MedicalMed DSP - Vigilant

DK

CosDen Med

CO

Gam

FP

Ph MP

Cur

SA

MedDSP

Flu

UV

Sem

GA

These Markets Currently Are

Most Attractive for VSUL

Market Demand is measured by “Who is knocking on our door AND who will probably contract for Engineering Services to develop a product”

MARKET DEMAND VS VISUALANT READINESS

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• ChromaID™• Strong patented technology

• Developed by world renowned scientists

• Maps color at the photon level

• Identification & authentication: Objects or substances are compared against stored chromatic color signature

• Color is nature’s fingerprint

• Counterfeiters cannot counterfeit what they cannot see

THE VISUALANT AMAZING TECHNOLOGY

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Covert, multi-dimensional, flexible, compact filesize, ease of use, impossible to duplicate or de-activate, no additional material cost

New

Proven, traceability, ease of use, memory capacity, size, difficult to duplicate/de-activate

Overt, expense, privacy concerns

Memory capacity, size, difficult to duplicate

Analysis time, overt, cost,

COMPARISON WITH OTHER TECHNOLOGIES

Proven, difficult to duplicate

Overt, expense

ChromaID

Pros:

Cons:

Pros:

Cons:

Cons:

Pros:

Pros:

Cons:

Product authentication without addition or modification

RFID

Chemical, DNA-based markers

Encrypted graphics

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Major Advantages Help the Execution of Our Plan

• ChromaID devices can be manufactured in volume cost-effectively

• Scanners can be miniaturized

• ChromaID technology can be integrated into many different OEM products

• ChromaID databases are easy to build and can be managed locally or cloud based

• Applications in many large markets

CHROMAID MAKING IT SIMPLE

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CHROMAID -- MANY APPLICATIONS

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Short Term

• Continue using Cyclops 6 to Demonstrate capabilities

• Build and test next full featured generation -- Orca

• Continue Business Development in all markets

• Generate revenues with technology licensing

• Sell Development Kits– at $5k

• Sell Engineering Services in support of Development Kits

• Attend trade shows to attract more markets and customers

• Exploit TransTech markets - sell licensees & Engineering Services

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COMMERCIALIZATION STRATEGY


Long term execution:

• Focus and Stay “mean and lean”

• Use demos and engineering services to get customers “skin” in the game

• Focus on customers where the data base can be enlarged and exploited

• Focus on sources of high margin revenue• License the technology

• $/click database

• Dominate our addressable market

LONG TERM EXECUTION PLAN

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• Acquired on June 8, 2010

• Provides value added security and authentication solutions to corporate, government, and law enforcement markets

• Sell our products through over 400 distributors/dealers

• Provides direct customized solutions to large corporate and government clients

• Clients include: California Department of Corrections and Rehabilitation, Fortune 50 aerospace / defense contractor, and Veteran Affairs Hospital

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TRANSTECH SYSTEMS

* Revenue reduction was due to a large TransTech sale to an aerospace company in the year ended September 30, 2011, which was not repeated in the year ended September 30, 2012

2012 2011 2010

Revenue $7.9M* $9.1M $2.5M

Gross profit $1.58M $1.56M $448k


Ron EricksonVisualant CEO and [email protected]

Richard Mander, Ph.DVP Product [email protected]

Todd M. SamesVP Business [email protected]

THE BUSINESS TEAM

Mark Scott

Visualant CFO, Secretary and Treasurer

[email protected]

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Tom Furness, Ph.D, Co-InventorChairman, Scientific Advisory BoardProfessor, University of Washington

Brian Schowengerdt, Ph.D, Co-InventorMember, Scientific Advisory BoardProfessor, University of Washington

Toshihiko Ochi, Ph.D, Senior ScientistSumitomo Precision ProductsMember, Scientific Advisory Board

THE TECHNOLOGY TEAM

Dr. Masahiro KawahataFormer Director of the Fujitsu Research InstituteMember, Scientific Advisory Board

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For Further Information, contact-

Ron Erickson, Chief Executive Officer, [email protected]

Mark Scott, Chief Financial Officer, [email protected]

Todd Sames, VP of Business Development, [email protected]

Visualant, Inc.

500 Union Street, Suite 420

Seattle, WA 98101

206-903-1351

206-826-0451 (fax)

www.visualant.net

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VISUALANT CHROMAID IS A WINNER!

mailto:[email protected]

mailto:[email protected]

Documents

ChromaID Technology · Current Method Chroma ID Method CHROMA ID TECHNOLOGY ©2013 Visualant CONFIDENTIAL ChromaID is superior because: ... Cosmetics Paint Environment Markets 12