Transforming Pathogen Control

in the 21st Century

Dry-media Chlorine Dioxide(dmClO2

TM)

AvantecTechnologies, Inc.

Business Technology Center1275 Kinnear RoadColumbus, OH 43212

History & Corporate Structure

• Avantec US -- an Ohio-based company incorporated in Oregon in 1995

• Started operations in Columbus, OH in August 2002 as a separate company.

• 100% owned by Avantec Canada - holding company traded in the Toronto Stock Exchange (TSX-V: AVV)

• Avantec US owns all the assets (patents, registrations, equipment, inventory, etc)

• Major shareholder – Jerry Minni (40.6%), Chairman of Avantec Canada

Avantec Technologies Inc.(Vancouver, B.C.)Holding Company

Avantec Technologies Inc.(Columbus, OH)

Antimicrobials & Disinfectants

Business Model• Developer and manufacturer of dmClO2 ™ and

other dry-media antimicrobial products

• Position as provider of most cost/effective point-of-use ClO2

• Strong IP protection plus trade secrets

• Management team with significant operational experience (sales, marketing, production), financial, and advanced antimicrobial technology

• Build strategic alliances with partners providing channels of distribution and/or synergies in application technology

The Problem & Its Prevention

• Foodborne diseases - cost $37.1 billion in medical costs and productivity losses (USDA). Industry currently spending $500 million addressing this problem

• Air Quality - U.S. consumers spend $1.7 billion in fresheners and deodorizers (mostly masking odors).

• Waterborne diseases - are the # 1 cause of infant mortality in developing countries and disaster areas

• Hospital-acquired infections- rose by 20% from 2000 to 2003 leading to about 10,000 deaths resulting in excess costs of $8.73 billion.

• Conventional disinfectants - are not 100% effective against a comprehensive group of pathogens

The Need for a Better Solution

Avantec’s Solution “Harnessing the power of ClO2”

Creates a solution safely & simply at the point of use

• Portable and easy to use• Negligible capital investment• No need for electricity• Low transportation cost• No mixing of chemicals• No special operator training• Multifunctional uses

Allows small and medium size applications to benefit from

chlorine dioxide use

US Patent No. 5,567,405US Patent No. 5,573,743 US Patent No. 5,730,948US Patent No. 5,776,850

US Patent No. 6,764,661B1Several patents pending

1

2

3

4

2

1 4

AcidSodium Chlorite

4 4

Step 1: Water diffusion into M2R™ device

through hydrophilic membrane.Step 2: Chemicals’ dissolution.Step 3: Dissolved chemicals exchange across hydrophilic membrane and chemical reaction takes place:

5 NaClO2 + 4 H+ → 4 ClO2 + 4 Na+ + NaCl + 2H2O

Step 4: Chlorine dioxide (ClO2) diffuses out of

M2R™ device through hydrophobic membrane and gaps in the bag.

Mass Transfer Mechanism of M2RTM

ClO2-

H+

H+

ClO2-

H+

H+ClO2

-

ClO2-

ClO2-H+

Air + H20 (moisture)

HClO2

ClO2

1

2

4

5

Sodium ChloriteParticle

Acid Particle

Air + H20 + H+

3

Deliquescent material

Step 1: Moisture introduced into M2R™ device

through hydrophobic membrane with the assistance of deliquescent material.Step 2: Acid powder becomes hydrated upon exposure to moisture.Step 3: Partially dissolved acid (H+) absorbed into the inner membrane.Step 4: H+ acidify the chamber containing sodium chlorite, and chemical reaction takes place.Step 5: Generated Chlorine dioxide diffuses out of M2R™ device through hydrophobic membrane .

Water-Activation Mechanism

Moisture-Activation Mechanism

NosGUARD SGTM Mechanism

Efficiency matrix for the generation of ClO2

• High conversion• Short generation time

• High conversion• Long generation time

• Low conversion• Short generation time

• Low conversion• Long generation time

Safety Cost

Versatility

Ease-of-Use

Manufacturing Cost Distribution

Raw Materials (chemicals)• Sodium chlorite (Vulcan & Aragonesas)• GRAS acid (citric acid, sodium bisulfate, etc)• Others (deliquescent agents, chelants, etc)

M2R™ Pouch (membranes pouch)• Tyvek® & Sontara®

Outer Packaging Pouch• Polyethylene • Aluminum foil

TowerGUARDTM

Chemicals 25.72%

M2R pouch 25.42%

Packaging 18.56%

Labor 30.30%

TowerSAFETM

Chemicals 16.39%

M2R pouch 28.95%

Packaging 20.14%

Labor 34.52%

Avantec Markets

DRY-MEDIA CHLORINE DIOXIDE

dmClO2TM

OTHER ANTIMICROBIALS

Peracetic AcidBromine

Sulfur Dioxide

SANITIZING/DISINFECTINGSOLUTIONS($750 MM)

 

AIR QUALITYMANAGEMENT

($1,200 MM)WATER DISINFECTION

($500 MM)

OTHER APPLICATIONS

Medical SterilizationDecontamination

Wastewater treatment

Cooling WaterMarket Size - Ideal biocide for small systems

(HVAC – 500/2,000 gallons). $500/tower/year – 200,000 towers - $100 million

Products - TowerGUARD™ (EPA Reg. No. 72874-2) & TowerSAFE™ (EPA Reg. No. 72874-3)

End Users – Building managers & maintenance departments

Benefits – Well-known to industry. ClO2 can replace existing biocide programs. Best program to handle Legionella (Chinese market)

Food Surface Sanitation

Market Size – Food preparation in plants, institutions, restaurants, retail , hotels and cruise lines $500 million

Products - SurfGUARD™ and second generation products

End Users – Hospitals, nursing homes, schools, fast food & full service restaurants, hotels, cruise lines and retail

Benefits – Industry must control 100% bacteria, viruses & parasites. Serious liability, lost revenues and image problems

Air Quality ManagementOutdoor Uses

Market Size – The combined market potential of deodorizers for dumpsters, portable restrooms and garbage trucks is $200 MM

Products –NosGUARD SG™ - Protocols approved for outdoor uses by EPA . Registrations in process

End Users – Supermarkets, food processing plants, hospitals, hotels, restaurants and municipalities

Benefits – Odor elimination in dumpsters, portable restrooms and garbage trucks will prevent the spread of diseases. Current products only mask odors.

Water DisinfectionMarket size - over 1.8 billion people do not

have access to safe water

Products – VERSAN™ as a stand-alone disinfectant to treat 5 to 2,000 gallons of water. 10,000 VERSAN ™ packets shipped to SE Asia

End Users – First responders, government agencies, U.S. Army, NGOs. VERSAN™ packets can also be integrated with water filtration systems to provide a complete program

Benefits – Complete disinfection of water from any source using simple containers

Medical Disinfection/Sterilization

Market Size – US market for steam, ethylene oxide and liquid germicides about $1 billion. M2R™ produces both gas and liquid solutions of ClO2

Potential Products: M2R™ can also generate peracetic acid at the point-of-use eliminating stability problems of conventional solutions. Potential market to reach $100 million by 2010

Benefits: ClO2 liquid provides better performance than current Liquid Chemical Germicides (LCGs): glutaraldehyde, peracetic acid and hydrogen peroxide. Market potential to reach $$150 million by 2010

Growth Strategy• Expand sales in cooling water with new product

TowerGUARD™ (EPA Reg. No. 72784-2) in US and China

• Pursue Air Quality Management opportunities with NosGUARD SG™ in outdoor applications (dumpsters, garbage trucks and portable restrooms)

• Pursue Water Disinfection opportunities with Versan™ products for developing countries, and remote and disaster areas

• Define participation in the medical

disinfection/sterilization market

• Complete strategic partnership in one or more markets

IP & Regulatory requirements

• Patent Strategy

• Trade Secrets

• EPA Registrations New SurfGUARD™ (low dosage) – October

2005 NosGUARD SG™ – outdoor uses – September

2005 VERSAN™ - water disinfection – January 2006

• EPA/FDA – consumer applications (mold & mildew)

Management Team Jerry Minni; Chairman of the Board – Chairman/CEO of the Raytec Group,

Avantec's parent company. 22 years of experience in corporate finance and business investments.

Bernardo N. Rico; President & CEO - Former executive level management of Nalco Chemical (global Fortune 500 specialty chemicals). Executive VP of Donlar Corp., (start-up tech. company). BS/Chemistry and MS/Environmental Engineering with 36 years of experience in operational management

Greg Boyle; Director of Sales - Fifteen years of experience in sales and marketing in the consumer, retail and institutional food businesses. Former sales manager with the Carnation Company and Dixie Consumer Products. BS in Business Administration

James Chia; Manager-Product Development - Five years of experience in research, product development in advanced oxidation technology including chlorine dioxide, ozone and UV. BS and MS in Chemical Engineering.