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1. www.ars-fla.com CORE TECHNOLOGIES June 2008

2. Technologies Available (all patented or pending) for licensing in multiple applications (fields-of- use): • HYDROCAPSULES®- Liquid Core Polymer Encapsulation • HydroFast®- GRAS Waterproofing Additives & Coatings • PolyGels - Non-aqueous, GRAS Polymer Gel Formations • Light Reactive Dyes - GRAS Temporary Color Dyes for Sprays NOTE: The following slides are a brief summary of these technologies included for the benefit of those who have not seen the full presentations. Detailed information of these technologies is available with a CDA/MTA.

3. www.ars-fla.com HYDROCAPSULES® • - History of Development / Overview • Applications of the Technology • Product Specifications / Capsule Size • Controlled Release Approaches • Machine Hardware

4. HYDROCAPSULE DEVELOPMENT HISTORY / OVERVIEW This ARS patented technology was initially developed under federal grant funding in the late 1990's for entomological / agricultural applications to provide a delivery system for aqueous based nutritional diets for mass-rearing a wide range of entomophagous (beneficial) insects for Biological Control. This technology is not only capable of encapsulating aqueous solutions, but many other liquids and mixtures of liquids (including suspensions with various particle sizes). We have encapsulated water, many aqueous solutions, various animal and plant based protein solutions, and oils. Additionally we have also encapsulated bacteria, organisms such as nematodes and shrimp eggs, blood products, and several other chemical solutions for many research labs and clients. We have several formulations of coatings available to allow for varying environments, strengths and thicknesses of the shell polymer, triggered or controlled release of capsule contents.

5. HYDROCAPSULE POSSIBLE APPLICATIONS • Potential applications of this technology include, but are not limited to, the encapsulation and delivery of: • - a wide range of liquid nutritional supplements for plants & animals • - time delayed or triggered release of liquid nutrients or pesticides • - bio-rational pesticides and/or water-proof traditional pesticides • - higher-value urban entomological pest control applications • - insect mating / disruption by chemical release (pheromone delivery) • - delivery of bacteria, fungi, viruses, cells, microbes, biological agents, • entomopathogenic organisms or other pathogens • - drugs or essential liquid nutrients for aquatic plants & animals • aqueous based pharmaceutical agents / drugs such as oral vaccines • - aqueous based flavor or fragrance delivery or provide water-proofing

6. HYDROCAPSULE APPLICATIONS

7. HYDROCAPSULE SPECIFICATIONS CAPSULE SIZE, SHAPE, COLOR, STABILITY, STRENGTH • Size Range: 0.2 mm to 12+ mm • Wall Thickness: 10- to 200+ microns • Shape: Spherical • Color: Transparent to Any Color • Density: 0.85 to 1.2+ • Stability: 10+ years shelf-life • 7. Temp Range: - 40 F to 250+ F • 8. Strength: Variable, Soft –to- Hard • infinite MW, cross-linked • 9. Reactivity: Unless built into polymer, • fairly inert, non-reactive

8. HYDROCAPSULE VARIOUS SIZE CAPSULES

9. HYDROCAPSULE CONTENT RELEASE CONTROLLED & TRIGGERED RELEASED TECHNOLOGIES • Polymer Porosity – Membrane Diffusion • pH Reactive Shells – Alkaline or Acidic • Blended Reactive Salts or Chemicals • Temperature or Light Reactive Compounds • Emulsification of Evaporative Chemicals • Secondary Attachment of Functional Groups

10. HYDROCAPSULE HARDWARE & PROCESS

11. HYDROCAPSULE HARDWARE, CONT.’D…

12. HYDROCAPSULE HARDWARE & R&D LAB

13. www.ars-fla.com Hydro-FAST ®

14. Florida Citrus Production Research Advisory Council FCPRAC – 2004 RESEARCH PROPOSAL No. 041-03E POLYMERIC ENHANCEMENT OF FRUIT-FLY BAIT-SPRAYS TO INCREASE FIELD LONGEVITY, DECREASE COST, & REDUCE PESTICIDE USE Ara Manukian & William Toreki, PhD Analytical Research Systems (ARS), Inc. / Gainesville, FL Don L. Harris & R.E. “Ed” Burns Florida Dept. of Agriculture & Consumer Services (FDACS) Division of Plant Industries / Gainesville, FL

15. RESEARCH OBJECTIVE To develop a new chemical additive that can be mixed with standard water-soluble protein-based fruit fly bait-sprays (such as Nulure®), which will increase the bait-spray’s water-fastness and become more resistant to wash-out from rainfall or overhead irrigation. Additionally, the new additive when mixed with a bait-spray should: Remain equally attractive to Caribbean Fruit Flies as current bait-sprays. Not retard the toxicant effect of the active pesticide agent. Be very inexpensive and can be easily mixed into the bait solution. Must work with current bait-spray equipment. Be environmentally safe, biodegradable, & add no additional toxicity. Be allowable for EPA registration (preferably fast-tract).

16. Hydro-FAST The HYDROFAST technology is an ARS patented (& trademark)-pending technology, consisting of a polymeric chemical additive and re-formulation of commercially available bait-sprays, which is environmentally safe and inexpensive. It can be used to increase field longevity, decrease the number of applications (i.e. lowering costs), and reducing total pesticide use, for the control of pest fruit-flies and other crop insect pests. The HydroFast technology was designed to provide a large increase in the rain-fastness (resistance to wash-off) of aqueous protein-based bait sprays. HydroFast enhanced bait-spray has successfully shown in accelerated laboratory rain testing, an increase in rain-fastness of 20X. This represents a significant reduction in the amount of pesticides that would be washed-off into surrounding ground-waters and the number of re-applications needed to maintain the same level of pest-control. This technology was also separately tested and evaluated by scientists at the Florida Dept. of Agriculture’s main fruit-fly rearing facilities in Gainesville, FL.

17. Hydro-FAST This technology is based on chemistry using very safe (non-toxic compounds) such as starches, carboxy-methyl cellulose (CMC), and poly(vinyl alcohol) & (acetate). All are 100% environmentally safe, biodegradable, and have zero health and safety concerns (commonly used in food processing). Starches can only be dissolved in very hot water and are not soluble in cold water. This produces a viscous solution and the starch remains in solution, even after subsequent cooling and then can be secondarily mixed with a cold solution. A starch solution applied to a surface and dried cannot be easily removed by cold water. Copolymers and blends of PVOH and PVAc are commonly used in water-based adhesives such as paper and carpenter’s glues, which are water-proof after drying, and yet are initially an aqueous solution. Formulations using these items are used in the HYDROFAST technology. This technology if applied to currently used bait-sprays could significantly reduce the amount of pesticides released into the environment, thereby providing huge health benefits to both people and animals as well as provide an equally beneficial political value for any company marketing those products.

18. www.ars-fla.com POLY-GELS

19. “POLY-GEL” TECHNOLOGY Polymer Gel Based Formulations PURPOSE: To create a totally safe, non-toxic (GRAS), non-water soluble oil-based gel matrix or substrate that can be used to deliver chemicals (attractants, pesticides, growth regulators, etc…) and nutritional items (foods) to any animal or plant, in an aqueous or “wet” environment, and meets EPA & FDA “fast track” registrations. BASED ON:Formulations using 75% –to- 95% pure or blended oils, such as vegetable oils, animal oils, mineral oils and a small amount of FDA approved polymer gellatants (such as styrene-butadiene- [ /-isoprene /-ethylene/ butylene]-styrene that areINGESTABLE! APPLICATIONS:Numerous. Poison food baits for Insects and other vermin, delivery of nutritional supplements and drugs to all animals.

20. Poly-Gel Application Example of Use: Fire Ant Baits < BEFORE - Layout Bait (0.25 kg Poly-Gel bait) Poly-Gels can be made into any shape, size, color & contain a wide range of solid or liquid ingredients! AFTER – 20 hrs later > A special formulated oil bait was observed being consumed by fire ants until completed consumed. Within a few minutes after application, the bait was completely swarmed by hundreds of fire ants.

21. Poly-Gel Application Fire Ant Baits –Fire Ants swarming P-G bait immediately upon placement!

22. www.ars-fla.com LIGHT REACTIVE DYES

23. LIGHT REACTIVE DYE (LRD) Technology Temporary (short-term) Colored Dyes PURPOSE: To provide a safe/non-toxic temporary (short-term), high contrast visual color indication of any chemical spray application to show treatment using a light reactive dye (LRD). This LRD must be inexpensive, a simple additive to common pesticide/fertilizer spray solutions, and fade away in a short time-frame. BASED ON:Photo (Light) Reactive compounds, water soluble or oil-fixable , that are colored to show contrast against most plants. Mixed into standard over-the-counter (OTC) commercial sprays at a concentration between 0.02 – 0.05%. Color fade time is totally controllable and can be adjusted to fade away within 15 minutes to several hours based on LRD concentration and environmental conditions. APPLICATIONS:Numerous. Commercial urban lawn sprayers, aerial and ag sprayers, consumer products, ornamental & greenhouse growers.

24. Light Reactive Dye (LRD) Test using LRD to indicate Commercial Pesticide spray application: < 0.05% LRD mixed in with OTC Pesticide prior to spraying (Typ. LRD Concentration: 0.02-0.05%) Spayed ca. 1 sq. yd with typical hand sprayer. Applied OTC Malathion Pesticide/Water Mixture per label dilution. Test done in direct Florida Sun at noon at 85 deg.F (Different views to show dye contrast). (Color faded by ca. 50% within 30 minutes, faded by ca. 80+% in the first hour and was 90+% gone within 2 hours (visual approximations). No detectable LRD color on grass after 3 hrs. >

25. CONTACT INFO Ara Manukian (technical contact) ARS, Inc. Director of Engineering P.O. Box 140218 Phone: (352) 466-0051 Gainesville, FL 32614-0218 Email: ara@ars-fla.com USA Michael Pitsokos(all inquiries & licensing) Tel: (352) 466-0051 Business Development Fax: (352) 466-0055 Phone: (678) 234-8743 Email: mikep@ars-fla.com Web: www.ars-fla.com