Scientific Innovations, Inc. Joseph Brondo President and CEO Prepared by Kenneth C. Ehrhardt

1. Inc. Innovations SCIENTIFIC OVERVIEW SCIENTIFIC INNOVATIONS INC. “MGRIDS” TECHNOLOGY Scientific Innovations, Inc. Joseph Brondo President and CEO Prepared by Kenneth C. Ehrhardt SCIENTIFIC INNOVATIONS, INC.

2. CAPABILITIES AND BUSINESS FOCUS AREAS • Scientific Innovations, Inc. has developed a unique, patented and specific technology capable of identifying threats from a variety of sources. This technology, known as MGRIDS, can be specifically configured to identify: • Explosives Nuclear or Radioactive • Drugs materials (dirty bombs) • Other contraband Medical Scanning • Our business can be divided into 8 distinct areas based on the specific application of the technology. These areas of focus are: • Shipping Container Airline baggage and cargo • Passenger scanning Vehicle scanning • Border security IED Detection • Mobile Scanning Full body medical scanning SCIENTIFIC INNOVATIONS, INC.

3. SPECIFIC BUSINESS AREAS • Shipping Containers – these are ocean containers entering the U.S. from various ports from around the world. (Also applicable to rail) • Airline Baggage and Cargo – located in airports to provide rapid scanning and positive identification of all non-passenger cargo. • Passenger Scanning – provides a positive, safe and thorough method to scan people for a variety of contraband materials. • Vehicle Scanning – provides the opportunity to identify threats aboard moving vehicles. • Border Security – can be established at either fixed or open terrain border locations. • IED Detection – utilizing an open field scanning approach, this sector will focus on the identification of randomly placed IED’s. • Mobile Scanning – focused on the development of individual units that can be temporarily positioned at any location. • Full Body Medical - develop opportunities for medical end uses. SCIENTIFIC INNOVATIONS, INC.

4. WHAT IS MGRIDS • MGRIDS - Mono-Energetic Gamma Resonance Imaging and Detection System is the newest and Only technology capable of SimultaneouslyDetecting and SpecificallyIdentifying multiple threats from contraband stored in varying container types regardless of size or shape up to 300 meters away • MGRIDS IS – The Solution To Legislated Inspection • Critical Features: • Simultaneous inspection, detection and identification of Explosives, Nuclear materials and Drugs based on their unique chemical make up • High throughput scanning capability with > 95% accuracy • Proven technology with intellectual property covered by 36 current US and International patents • Fully automated decision making with element specific 3-D imaging • Testing is non-destructive, non-invasive and safe SCIENTIFIC INNOVATIONS, INC.

5. MGRIDS - CAPABILITY • Open architecture allows for specific designs for each unique application • Detection configurations can be designed for portal, standoff, transportable and remote sensing – up to a distance of 300 meters from the source • Target design can be done in a manner that is very specific for the detection a given element or very broad so as to encompass detecting many different elements depending on the application • 3-D tomographic imaging of total contents with simultaneous analysis by element yielding unique threat identity, quantity and location • Configurable for multiple discrete scanning stations powered by one proton accelerator • Fully automated decision capability with minimal operator interpretation and threat identification training SCIENTIFIC INNOVATIONS, INC.

6. MGRIDS – MARKET ANALYSIS • Public Law 110-161 requires that by the end of 2010 100% of all incoming containers must be scanned for potential threats • September 30, 2006 U.S. Congress passed H.R. 4954 authorizing a $3.4 billion port security bill • The bill authorizes $400 million per year spending through 2011 for direct grants to ports to be spent on equipment and training • All current detection systems rely on x-ray technology or other latent chemical analysis that DO NOT yield specific threat identification • ONLY MGRIDS can identify the unique threat(s) and determine the quantity and location SCIENTIFIC INNOVATIONS, INC.

7. MGRIDS – Market Analysis • U.S. only locations for MGRIDS units • Additional revenue potential: • MGRIDS sales outside the U.S. • After-market parts, training, services SCIENTIFIC INNOVATIONS, INC.

8. Force Protection (DoD) • Military Bases • Counter-terrorism • • Explosives Detection in Vehicles • Mine detection in the field Warhead/Rocket QC (DoD) Warhead/Rocket QC (DoD) • Crack & Void Detection • Crack & Void Detection • Mixture Quality • Mixture Quality Medical Research • Neutron Capture Therapy Environmental Cleanup (DoD) ) • Whole Body Composition • Unexploded Ordnance Detection • Mine Field Clearance MGRIDS: POTENTIAL USERS AND APPLICATIONS • Private Sector • Stadium or arena protection Department of Transportation (DoT) • FAA • Explosives Detection in Cargo • Checked baggage inspection • Scanning trucks/vehicles MGRIDS Technology US Customs (DHS) • Border Control • • Seaports • Buildings • Explosives, Nuclear • Material or Drug • Detection in Vehicles • and Containers SCIENTIFIC INNOVATIONS, INC.

9. BNL $1M FAA $3M DARPA $10M FAA $12M 1988 1994 1990 1992 1996 2000 1998 Government and Private Funding Congressional Authorizations $15M • More than $27M invested by US government for R&D to date. • Private Funds provided by Scientific Innovations Inc. • Private Funds provided by EDO Corporation ( ITT ) • Private Funds provided by Grumman Aerospace Corporation • Private Funds provided by Northrop Grumman Co. • Private Funds provided by Advanced Energy Systems • Private Funds provided by General Atomics Manhattan Project and BAA04-02) Government and Private Funds from 1985 to present 2012 SCIENTIFIC INNOVATIONS, INC.

10. Government Involvement Department of Energy Laboratories Department of Defense Laboratories Department of Homeland Security Defense Advanced Research Projects Agency Department of Transportation Transportation Security Administration Air Force Technical Assistance Command U.S. Customs Coast Guard Pentagon Naval Surface Warfare Centers (Dahlgren, Yorktown, Indian Head, EOD) Naval Research Laboratory , Office of Naval Research SCIENTIFIC INNOVATIONS, INC.

11. CURRENT STATUS OF THE MGRIDS PROGRAM • MGRIDS is ready to move into the commercial development stage • Intellectual property is protected with additional patent applications on file, being processed or ready to submit • Proof of concept completed and documented • In Less Than 1 Yearof securing funds, 1 MGRIDS demonstration unit can be readied and commercial units can be manufactured for specific end uses • Within 1 Year, SII will Initiate customer demonstrations and begin taking orders • SII is seeking funds to make MGRIDS a viable and valuable commercial product. SCIENTIFIC INNOVATIONS, INC.

12. MGRIDS – OPERATION AND PUBLIC SAFETY • The proton accelerator produces low energy x-rays that are managed at the accelerator and controlled by shielding at the source • Protected and highly collimated proton beam • Radiation dose required to analyze Nitrogen (N) in the human body is 0.026 mrem - about 1/40 of the exposure from a dental x-ray • Dose to a stowaway or operator would be considerably lower than that noted above • Target produces only gamma radiation, no neutrons, therefore no induced radioactivity of surrounding objects • The gamma flux is up to three orders of magnitude lower than any current commercial competitive system e.g.VACIS, CT systems and other “soft x-ray” systems. SCIENTIFIC INNOVATIONS, INC.

13. MGRIDS – SYSTEM AND MAIN COMPONENTS Gamma Beams Target Inspected Object Proton Accelerator The proton accelerator generates a proton beam that hits the target that then produces a gamma beam field Detectors The produced gamma beams interact with the object of interest creating a unique signal signature that is received by the detectors. SCIENTIFIC INNOVATIONS, INC.

14. Single system can feed four inspection stations simultaneously at one location Single system can feed three inspection locations alternately MGRIDS – MULTIPLICITY OF INSPECTION STATIONS SCIENTIFIC INNOVATIONS, INC.

15. MGRIDS – POTENTIAL FIELD DEPLOYMENT SCIENTIFIC INNOVATIONS, INC.

16. Detectors Stacked Containers Resonance Gamma Beam Target 8’ 21’ 18’ 36’ MGRIDS – POTENTIAL FIELD DEPLOYMENT • Simultaneous inspection of 4-40’ containers • A 2 container stack will double the throughput • Scan time <4 minutes • (Times extrapolated from experiments) SCIENTIFIC INNOVATIONS, INC.

17. Nitrogenous and non-nitrogenous objects placed in a beam. Experiments carried out by Nahal Soreq Group MGRID – PROOF-OF-PRINCIPLE EXPLOSIVES IDENTIFICATION Images: Out of resonance – X-ray like image - Showing all materials In resonance – Highlights only materials with Nitrogen - Explosives SCIENTIFIC INNOVATIONS, INC.

18. Six explosives (A to F) were hidden in a LD-3 container loaded with a mixed cargo. NRC Nahal Soreq group carried out these experiments using resonance detectors for nitrogen detection. Two images are created simultaneously. The upper image shows a regular gamma transmission radiograph. The lower image shows nitrogen image that clearly identifies the explosives. Note: No data enhancement or cleanup – raw data only B A C F D E MGRIDS – DEMONSTRATION OF LD-3 CONTAINER SCIENTIFIC INNOVATIONS, INC.

19. MGRIDS - ADVANTAGES In a two dimensional plot simultaneous registration of the total density and the nitrogen density separates the explosives from other common materials. Notice the completely distinct and separated region for drugs. This plot provides for the fully automatic identification of explosives and/or drugs. Capability to detect additional elements e.g. U235, Pu239, Th232 SCIENTIFIC INNOVATIONS, INC.

20. NITROGEN DENSITY VS TOTAL EXPLOSIVE DENSITY SCIENTIFIC INNOVATIONS, INC.

21. 5 YEAR REVINUE SUMMARY SCIENTIFIC INNOVATIONS, INC.

22. Scientific Innovations, Inc. • New York corporation incorporated in 1985 under the laws of the State of New York headquartered on Long Island • Incorporated for the purposes of research and development of Non-Intrusive medical imaging and detection systems for diagnostics and treatment of disease • Evolved into the research development of a unique and superior system of detecting and imaging terrorist threats • All types of explosive materials (liquid and solid) • Chemical warfare agents and chemical weapons • Radioactive or nuclear materials (SNM) Nuclear weapons (shielded and unshielded) • Drugs, contraband and new emerging threats • The Company maintains a WEB site for its technologies and products at www.scientificinnovations.org. SCIENTIFIC INNOVATIONS, INC.