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Biodegradable Lubrication Technology that Improves Fuel Economy, Reduces Emissions and Extends Equipment Life

Biodegradable Lubrication Technology that Improves Fuel Economy, Reduces Emissions and Extends Equipment Life. Advanced Lubrication Technology, Inc.’s Boron CLS Bond TM Revolutionizes Industrial Equipment Efficiency. Presented by Phiston Technologies, Inc. In collaboration with

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Biodegradable Lubrication Technology that Improves Fuel Economy, Reduces Emissions and Extends Equipment Life

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  1. Biodegradable Lubrication Technology that Improves Fuel Economy, Reduces Emissions and Extends Equipment Life Advanced Lubrication Technology, Inc.’s Boron CLS Bond TM Revolutionizes Industrial Equipment Efficiency Presented by Phiston Technologies, Inc.In collaboration with Advanced Lubrication Technology, Inc.

  2. HISTORY Initially developed for NASA‘s Space Shuttle program by Argonne National Laboratory, Illinois, USA. 1995 - First worldwide patents Patents and marketing rights obtained by Advanced Lubrication Technology, Inc. (ALT), California, USA ALT‘s product development, formulations, testing and subsequent patents 2000 - Worldwide marketing and sales 2002 - Start of market launch in Europe

  3. TECHNOLOGY Concepts behind the behavior of surfaces with Boron coatings Boric Acid chemically reacts with the metal surface to form a highly adhesive 0.5 micron thick Crystal Lattice Structure (CLS). Metallic Substrate Boron Crystal Lattice Structure Metallic Substrate

  4. Chemical bonds with the metal Resulting in elimination of metal-to-metal contact and resistance to corrosion TECHNOLOGY

  5. TECHNOLOGY The Boric Acid also reacts with systemic moisture to form platelets with a crystalline lattice structure. These platelets align themselves parallel to the metal surface and conform to the direction of movement Direction of motion Metallic Substrate Metallic Substrate Boric acid platelets aligned in direction of motion

  6. TECHNOLOGY Metallic Substrate FRICTION Metallic Substrate Inter-platelet bonding by weak “van der Waals“ forces across 0.318 nm space between platelet layers allows very-low-friction interplatelet movement.

  7. TECHNOLOGY Metallic Substrate Metallic Substrate • Each Boron CLS Bond platelet has strong intra-molecular bonding - giving it the equivalent of 85% of the hardness of diamonds. • Extreme low friction coefficient • Extreme pressure performance

  8. TECHNOLOGY The Boric Oxide film is Self-renewing in the Presence of Oxygen and Moisture Boric Acid (H3BO3) introduced to metallic substrate to form Boric Oxide film and H3B03 is replenished spontaneously by the interaction of boric oxide and air. Boric Acid Air H2O Air Boric Oxide

  9. KEY BENEFITS OF BORON CLS BOND ™ High Performance Friction Reducing Technology Higher reliability, Better fuel economy Higher performance, Lower maintenance costs Radical decrease of corrosion Eliminates micro pitting Improves reliability Biodegradeable Extreme pressure performance A replacement for environmentally unfriendly extreme pressure additives Versatile applications - from hydraulic lubricants to coatings Cost Effective (Total Cost - self renewing) Why it is beneficial to use the Boron coating for your applications

  10. LUBRICATION PERFORMANCE Friction coefficient less than 0.01 - average 80% reduction Timken Load equals 90+ 50 radians scar wear under 50,000 PSI - average 80-90% wear reduction on metal parts Elimination of metal-to-metal contact Self-renewing Biodegradable

  11. ADDED VALUES Biostat Anti-corrosive Anti-oxidant Reactive coating Removes varnish, carbon and sludge on previously used machinery / engines Protection from deposit formation or reformation

  12. OPERATIONAL BENEFITS Superior lubrication performance Chemical bond with the metal; elimination of metal-to-metal contact Dramatic reduction of friction and wear - Increase of mechanical operating efficiency - Extension of application design life Lower energy and fuel consumption Increased longevity ( of the associated base lubricants because of dramatically reduced oxidation) - longer service intervals Corrosion prevention Elimination of micro pitting Cooler operating temperatures

  13. ENVIRONMENTAL BENEFITS Biodegradable, contains no toxic additives A replacement for environmentally unfriendly extreme pressure additives (sulfur / zddp / chlorinated paraffins / moly / graphite) Increased longevity of the associated base lubricants because of dramatically reduced oxidation Reduction of fuel and energy consumption Lower exhaust emissions Solution for future gas / hybrid / fuel cell applications Meets the 2005 EC mandate to reduce sulphur content to 50 – 20 ppm in enviromentally friendly diesel without harmful additives.

  14. PERFORMANCE RESULTS Before Boron CLS Bond Engine Treatment: Emission test result before applying Boron CLS bond engine oil treatment; CO =1.42%vol HC = 288 ppm Compression test results before applying Boron CLS bond engine oil treatment: Cylinder number one = 135 psi Cylinder number two = 160 psi Cylinder number three = 175 psi Cylinder number four = 160 psi Single Vehicle test and results. Provided by Reneva Emission Testing Center Vehicle Make = Mitsubishi Lancer Year Model = 1997 Plate Number = UNH902 Owner = Spinaker Holdings Corp. After Boron CLS Bond Engine Treatment: • Emission test result 30 minutes after applying Boron CLS bond engine oil treatment; • CO =1.24%vol • HC = 135 ppm • Compression test results before applying Boron CLS bond engine oil treatment: • Cylinder number one = 200 psi • Cylinder number two = 195 psi • Cylinder number three = 205 psi • Cylinder number four = 200 psi

  15. CERTIFIED PERFORMANCE RESULTS Analysis of Test Results: Roughly compression pressure has 25% increase per cylinder. Idling performance become smoother as a result of almost equal cylinder compression pressure. Quicker response during acceleration is observed as indicated of greater and more engine power is produced. Conclusion: “3.5 liters of engine oil mixed with 350 ml Boron CLS Bond, produce oil film that is thicker and provides the following advantages in the engine operation.” Increases its cylinder wall and piston rings sealing capacity Provides a longer interval of change oil, due to almost zero leaks of gases to crankcase that carries dirt to contaminate engine oil. Removed friction between moving parts that lessen power loss caused by hard to move moving parts, and prolong engine life/service. Increases fuel mileage and provides quicker response during acceleration, due to increase in power and a friction free moving parts. Note: This Boron CLS bond application was performed without changing the engine oil at 3,690 km run since last change oil. Tested by: Jun Evangelista Quality Manager Raneva Emission Testing Center

  16. FINANCIAL ANALYSIS Independent Financial Analysis of Impact of Using Additive Boron CLS BondTM • Performance Results Collected from Fleet of Kraft Direct Store Delivery VehiclesProject Scope • Project Scope • Assess impact of Boron CLS Bond additive on performance of fleet equipment • Description of Project • Selected 9 locations, 2 Pizza and 7 Biscuit • Local management submitted fuel and mileages • Fuel and mileages were same submission for IFTA compliance reporting process to ITS

  17. DSD EXTENDED PILOT TEST RESULTS Validation of the initial pilot results Test duration 3 months Biscuit consolidated results 7 Locations, 142 power units MPG increased 7% - 9% w/ majority of fuel Winter blend / Bio10% 7% = 63,140 gal saved = $129mm net savings year one (1) 702 Tons of reduced CO2/Green house gas 7% = 63,140 gal saved = $182mm net savings year one (2) 702 Tons of reduced CO2/Green house gas 126,280 gals saved = 311,844 net savings over treatment (2 years) 1408 Tons of reduced CO2/Green house gas 9% = 81,181 gal saved = $184mm net savings year one (1) 905 Tons of reduced CO2/Green house gas 9% = 81,181 gal saved = $236mm net savings year one (2) 905 Tons of reduced CO2/Green house gas 162362 gals saved 420,048 net savings over treatment (2 years) 1810 Tons of reduced CO2/Green house gas Pizza Consolidated results 2 locations, 9 power units MPG increased 8.7% w/ Winter blend / Bio10% fuel 8.7% = 7,535 gals saved = $21mm savings

  18. SAVINGS PROJECTIONS Consolidated Fleet Current fuel rates and expanded pilot MPG ratio

  19. SAVINGS PROJECTIONS Biscuit DSD (Box Trucks) Current fuel rates and expanded pilot MPG ratio

  20. SAVINGS PROJECTIONS Pizza DSD Current fuel rates and expanded pilot MPG ratio

  21. SAVINGS PROJECTIONS Private & DSD Tractors Current fuel rates and expanded pilot MPG ratio

  22. SAVING PROJECTIONS Reefer

  23. DISCUSSION POINTS Funding Plan for Boron CLS Bond Fuel and Oil Treatment Branch Self Funding Program Implementation Plan Communicate Program Maintenance Service Providers Manager Customer Logistics Resources Finance – Area Manager Customer Logistics Maintenance Service Providers Tracking Process Team Site Management Maintenance Service Provider Execution Costs and Savings Implementation Tracking/ Audit

  24. APPLICATIONS IN: Automotive / On & Off-Road Marine Agriculture Forestry Industrial Machinery Construction Military Power / Energy Production Gas & Oil / Offshore Drilling 2-cycle Applications

  25. FUEL ADDITIVE Diesel fuel / Gasoline additive Decreases fuel consumption about 7%* Increased reliability in engine parts (fuel pump, nozzels etc.) Increased performance Eliminates need for sulphur and other non -enviromentally friendly additives * Based on various engine, lubrication and corrosion tests perfomed at BNM Research, Sweden, in April, 2002.

  26. OTHER APPLICATIONS Gear boxes – Gear additive Engines – Engine additives Misc. Industrial/Agriculture applications – Grease 2-stroke applications Tests performed at BNM Research, Sweden, indicates 5% performance increase and cooler operating temperatures

  27. OTHER APPLICATIONS / CONT... New generation coatings combined with Boron CLS Bond ™ Gas turbine / Hybrid / fuel cell applications Lower friction and dramatic decrease of corrosion

  28. ALT Inc. PRODUCT LINE MotorSilk Engine Oil Treatment MotorSilk Marine Product Line LubriSilk Greases LubriSilk Treatments Automatic Transmission fluidtreatment Gear fluid treatment Bearing oil treatment Turbine oil treatment Spindle oil treatment

  29. ALT Inc. PRODUCT LINE / CONT... LubriSilk Fuel Additives Low sulfur diesel fuel lubricant additive Biodiesel fuel lubricant additive Gasoline lubricant additive 2 -stroke engine fuel lubricant additive Other Hydraulic fluid Mold release Wire rope treatment Coatings Aerosol lubricants

  30. PARTIAL LIST OF TESTS PERFORMED Pin On Disk Ball on Three Disks Engine tests Fuel consumption Emissions Friction Coefficient Scar Width Spectrographic analysis Timken Load Corrosion Oxidation Prevention and protection from deposit formation

  31. PARTIAL LIST OF CUSTOMER REFERENCES WORLDWIDE Automotive / OEM Daimler Chrysler (NA) General Motors Honda Mannheim Automotive Auctions TVI Racing Dodge Car & Truck Winston Cup teams Several motorcycle racing teams worldwide Trucking Detroit Diesel Mack Trucks Scania Volvo Trucking 2-cycle engines Husqvarna Ryobi Agriculture Con Agra World Agra

  32. PARTIAL LIST OF CUSTOMER REFERENCES WORLDWIDE / CONT... Forestry Marelco (Washington/Oregon) Marine Southern Marine Volvo Penta Marelco Marine Industrial Timken Bearings Mitsubishi Heavy Industries Komatsu US Phelps-Dodge mining Dresser - Rand Power and energy Florida Light & Power Texas Power Authority Gas and off shore drilling Halliburton / Wellstream British Petroleum Military Hagglund U.S. Army U.S. Navy Government / public Houston Metropolitan Transit Authority Los Angeles Metropolitan Transit Authority Shandung Province, China Stockholm Stad Bologna Transit Authority

  33. MARKETS: AUTOMOTIVE Light Duty, Heavy Duty & Off Road Engine Oil Additives: reduce wear and pollutants Gearbox Oils reduce gauling and corrosion Transmission Oil Additives reduces corrosion and wear Hydraulic Fluids bio-friendly, reduce corrosion and wear Wheel Bearing Greases reduce wear, pitting, and corrosion Joint & Chassis Greases reduce wear, pitting, and corrosion

  34. MARKETS: AGRICULTURE Tractors, Implements Generators, Pumps Processing / Conveyance Equipment Engine Oil Additives reduce wear and pollutants Gearbox Oils reduce gauling and corrosion Transmission Oil Additives reduces corrosion and wear Hydraulic Fluids bio-friendly, reduce corrosion and wear Wheel Bearing Greases reduce wear, pitting, and corrosion Joint & Chassis Greases reduce wear, pitting, and corrosion

  35. MARKETS: CONSTRUCTION Lifts, Cranes, Excavators, Power Tools,Tractors/Graders/Dozers, Generators Engine Oil Additives reduce wear and pollutants Gearbox Oils reduce gauling and corrosion Transmission Oil Additives reduces corrosion and wear Hydraulic Fluids bio-friendly, reduce corrosion and wear Wheel Bearing Greases reduce wear, pitting, and corrosion Joint & Chassis Greases reduce wear, pitting, and corrosion

  36. MARKETS: INDUSTRIAL / POWER Engines, Transmissions, Bearings & Gears, Spindles, Turbines, Hoist Chains/Ropes Engine Oil Additives reduce wear and pollutants Gearbox Oils reduce gauling and corrosion Transmission Oil Additives reduces corrosion and wear Hydraulic Fluids bio-friendly, reduce corrosion and wear Wheel Bearing Greases reduce wear, pitting, and corrosion Joint & Chassis Greases reduce wear, pitting, and corrosion

  37. MARKETS: MARINE / OFF-SHORE Recreation/Commercial craft Underwater Mechanicals Offshore Rigs, Flexible Pipelines Engine Oil Additives reduce operating temperatures, wear, corrosion and pollutants Gearbox Oils reduce gauling and corrosion Transmission Oil Additives reduces corrosion and wear Hydraulic Fluids bio-friendly, reduce corrosion and wear Gear and Bearing Greases reduce operating temperatures, wear, pitting, and corrosion Joint & Chassis Greases reduce wear, pitting, and corrosion

  38. MARKETS: MILITARY Shipboard, Aircraft, Amphibious Vehicles, Construction Equipment, Fleet Cars and Trucks Engine Oil Additives reduce wear and pollutants Gearbox Oils reduce gauling and corrosion Transmission Oil Additives reduces corrosion and wear Hydraulic Fluids bio-friendly, reduce corrosion and wear Wheel Bearing Greases reduce wear, pitting, and corrosion Joint & Chassis Greases reduce wear, pitting, and corrosion

  39. Ali Ebadian, PhD CEO, Phiston Technologies,Inc. Contact: Phone: 305 517 1744 Cell: 786 325 4577 AliEbadian@Phiston.com www.Phiston.com CONTACT INFORMATION

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