EXPERIENCE THE DIFFERENCE Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ TABLE OF CONTENTS H2O is essential to life! What you didn’t know… Burdens of Bottled Water Benefits of POU cooler Current Market Trend Products & Services Customer Benefits Cost Benefit Analysis About us Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 2 H2O is essential to life! Company Confidential & Proprietary Information You are what you drink! Pure water keeps the body healthy Decreased chance of contracting: CHUNGHO USA – SIMPLY PURE™ 3 WHAT YOU DIDN’T KNOW… Would you drink yesterday’s old water today? Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 4 4 WHAT YOU DIDN’T KNOW… (Cont’d) Say “Hello” to the bacteria that love your water. * Bacteria doubles every 24 hrs Protect your water with ChungHo patented technologies. 24 Hour Re-Filtration! ChungHo patented technology Patent # 105585 Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 5 WHAT YOU DIDN’T KNOW… (Cont’d) FDA Regulations - Report done by NRDC Disinfection Required? No Confirmed E. Coli & Fecal Coliform Tested? No Testing Frequency for Bacteria 1 / week Must Filter to Remove Pathogens, or Have Strictly Protected Source? No Must Test for Cryptosporidium, Giardia, Viruses? No Testing Frequency for Most Synthetic Organic Chemicals 1 / year Operator Must be Trained & Certified? No Must Test for and Meet Standards for Asbestos & Phthalate? No Must Use Certified Labs to Do Testing? No Must Report Violations to State, Feds? No Regulated allowable levels of heavy metals 5ppm lead Consumer Right to Know About Contamination? No Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 6 BURDENS OF BOTTLED WATER Fluctuating water expense & overhead Disruption of work flow & security Frequently running out of water Heavy lifting - 40 lbs. water jugs Rising cost of bottled water Waste of storage space Poor design & low technology Easy contamination Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 7 BENEFITS OF POU COOLER Cost Reduction – Purified water costs fraction of a penny per gallon. Unlimited Water Supply – Because it is connected to your tap, it can purify up to 80 GPD. No More Clutter – Eliminate all storage of bottled water and free up space. No More Lifting – Eliminate any potential risk of employee injury do to heavy lifting of bottled water. No Liability - Eliminates any workman’s comp. issues related to bottled water injury. Reduced Overhead Cost – No one needs to distribute bottles throughout the company. No Accounting Headaches – One flat monthly bill enables easy invoice processing and time saving. (Auto Payment: ACH, Credit Card) Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 8 BENEFITS OF POU COOLER (Cont’d) Promotes: Healthier Living and Green Environment! Promotes a healthier and “greener” alternative to bottled water Eliminates tons of plastic bottle waste that are not being recycled Eliminates air pollution from delivery trucks Saves gas because there is no need to deliver bottles NOTE: San Francisco Mayor banned bottled water in office. Spent over $500K/Yr on bottled water. Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 9 CURRENT MARKET TREND H2O Evolution Past Present Tap Water Start! Future Filter Systems 4th: Polluted / Unhealthy 3rd: Expensive / Overrated Bottled Water Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 2nd: Limited Capacity 1st: Iguassu Ice Premium Water Purification Systems 10 CURRENT MARKET TREND (Cont’d) Case Study – Simply Pure™ Adoption at Cintas Corporation Cost savings and convenience without hassles BEFORE (Bottled Water) AFTER (POU Cooler) # of units 5 Dispensers 5 POU Coolers Cost per Month Approx. $1,000/M Less than $300/M Cost Savings/M - $700/M % Savings/M - 70% Total Cost (36M) Approx. $36,000 $10,800 Total Cost Savings (36M) - $25,200.00 What it looks like… Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 11 CURRENT MARKET TREND (Cont’d) Customer Cost Analysis Avg. cost of bottle: $6/bottle Avg. cost of cooler: $10/unit Delivery/Fuel surcharges Limited delivery schedule Overhead cost Invoice processing cost Workman’s Compensation Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 12 PRODUCTS & SERVICES Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 13 PRODUCTS & SERVICES (Cont’d) REVERSE OSMOSIS WATER PURIFICATION SYSTEM Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 14 PRODUCTS & SERVICES (Cont’d) Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 15 PRODUCTS & SERVICES (Cont’d) Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 16 PRODUCTS & SERVICES (Cont’d) Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 17 PRODUCTS & SERVICES (Cont’d) Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 18 PRODUCTS & SERVICES (Cont’d) Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 19 PRODUCTS & SERVICES Product Line – Iguassu Series MODEL SPECIFICATION (Cont’d) RETAIL PRICE SUPER IGUASSU ICE Tri-Temp POU Cooler w/ built-in Ice Maker Available in two colors (Black/Wine) Stand-Type 4 Stage Reverse Osmosis 80GPD Membrane 8G Total Tank Capacity High Capacity Ice and Water $3,000.00 IGUASSU ICE Temp POU Cooler w/ built-in Ice Maker Available in two colors (Black/Tri-Wine) Stand-Type 4 Stage Reverse Osmosis 80GPD Membrane 4G Total Tank Capacity $2,500.00 IGUASSU ICE 500 SUPER IGUASSU IGUASSU Company Confidential & Proprietary Information Temp POU Cooler w/ built-in Ice Maker Available in three colors (Black/Tri-Wine/White) Stand-Type 4 Stage Reverse Osmosis 80GPD Membrane 2.5G Total Tank Capacity Tri-Temp POU Cooler Available in two colors (Black/Wine) Stand-Type 4 Stage Reverse Osmosis 80GPD Membrane 8G Total Tank Capacity High Capacity Water Tri-Temp R/O POU Cooler Available in two colors (Black/Wine) Stand-Type 4 Stage Reverse Osmosis 80GPD Membrane 5G Total Tank Capacity CHUNGHO USA – SIMPLY PURE™ IMAGE $2,000.00 $2,700.00 $2,200.00 20 PRODUCTS & SERVICES (Cont’d) Product Line – Additional POU Coolers MODEL SPECIFICATION RETAIL PRICE IGUASSU 500 Tri-Temp R/O POU Cooler Available in two colors (Black/Wine) Stand-Type 4 Stage Reverse Osmosis 80GPD Membrane 5G Total Tank Capacity $1,750.00 IGUASSU CT-II Tri-Temp R/O POU Cooler Available in two colors (Black/Wine) Countertop-Type 4 Stage Reverse Osmosis 80 GPD Membrane 3G Total Tank Capacity $1,300.00 IGUASSU CT Cold and Ambient R/O POU Cooler Available in two colors (Black/Wine) Countertop-Type 4 Stage Reverse Osmosis 80 GPD Membrane 2.5G Total Tank Capacity $1,150.00 ODYSSEY B Tri-Temp R/O POU Cooler Stand-Type 4 Stage Reverse Osmosis 80 GPD Membrane 6G Total Tank Capacity $1,700.00 Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ IMAGE 21 PRODUCTS & SERVICES (Cont’d) Product Line – Other health products MODEL IGUASSU AIR PURIFIER IGUASSU AIR PURIFIER 500 SPECIFICATION Air purification system for home/office Available in two colors (Black/Wine) Area of coverage is 1,000 sq. ft. Dust sensor for dust level detection Continuous and auto modes Pre-, Gas, HEPA filters Air purification system for home/office Available in two colors (Black/Wine) Area of coverage is 500 sq. ft. Dust sensor for dust level detection Continuous and auto modes Pre-, Gas, HEPA filters RETAIL PRICE $1,200.00 $900.00 IGUASSU BIDET Tri-Temp R/O POU Cooler Stand-Type 4 Stage Reverse Osmosis 80GPD Membrane 5G Total Tank Capacity $700.00 SOFTNER BB Shower Softener Ion-exchange to soften water Aroma Rinse Cartridge for body rinse $500.00 Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ IMAGE 22 PRODUCTS & SERVICES (Cont’d) Rental/Leasing Plans PRODUCT 24M 36M 48M 60M SUPER IGUASSU ICE $149.99 $99.99 $94.99 $89.99 IGUASSU ICE $114.99 $84.99 $79.99 $74.99 IGUASSU ICE 500 $69.99 $49.99 $44.99 $39.99 SUPER IGUASSU $114.99 $84.99 $79.99 $74.99 IGUASSU $84.99 $64.99 $59.99 $54.99 IGUASSU 500 $54.99 $44.99 $39.99 $34.99 IGUASSU CT-II $39.99 $34.99 $31.99 $29.99 IGUASSU CT $34.99 $29.99 $26.99 $24.99 ODYSSEY B $59.99 $54.99 $49.99 $44.99 Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 23 PRODUCTS & SERVICES (Cont’d) Accessories and Options TYPE POU COOLER ITEM DESCRIPTION RETAIL PRICE Sediment Filter 6 Months $25.00 Pre-Carbon Filter 12 Months $30.00 Post-Carbon Filter 18 Months $40.00 Membrane Filter 24 Months, 80GPD $200.00 UV Filter 12 Months $200.00 Sediment Filter 6 Months $20.00 Aroma Rinse Body rinse $15.00 Sediment Filter 6 Months $20.00 Aroma Scent Cart. Scent cartridge for bidet $5.00 SOFTNER BB GOOD MORNING BIDET DP Combo ADD-ON OPTIONS FOR POU COOLERS DP+RF DP+FC Company Confidential & Proprietary Information Delivery pump connection to refrigerator + Faucet Delivery pump connection to refrigerator Delivery pump connection to faucet CHUNGHO USA – SIMPLY PURE™ $200.00 $150.00 $150.00 24 PRODUCTS & SERVICES (Cont’d) Customer Benefits Purest water (four-stage RO) Elegant designs and features For drinking and cooking After service (A/S) customer support Automatic filter exchange notice Industry Standard Warranty Full Service (*filters/parts/repair/labor included) Guaranteed Quality and Satisfaction (* Only for Lease Plan or Service Plan Options) Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 25 COST BENEFIT ANALYSIS Three Year Savings Bottled Water Simply Pure™ $/Bottle $6 N/A # of Bottles 244 ($1464) N/A $/Dispenser or POU Cooler $10 $45 # of Dispensers 36 ($360) 36 $/M $1824 $1620 $/Yr $21,888 $19,440 $/3yrs $65,664 $58,320 Savings/M N/A $204 (11%) Savings/Yr N/A $2,448 Savings/3Yrs N/A $7,344 Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 26 ABOUT US About Us Market-Leading Point-of-Use (POU) cooler company in the world Manufacturing Headquarters in South Korea – Established in 1993 Over 1M customers worldwide US Headquarters in Anaheim, CA – Established in 2003 Over 6 years of successful business history in US 60+ dealerships across the country and Canada Regional Distribution Center in Chicago (Coming Soon…) Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 27 Thank you for considering us to be your Premium Water Purification System Supplier. For additional information, please contact: – Address: 1240 N. Simon Circle, Suite A, Anaheim, CA 92806 – Office: (714) 630-0307 – Fax: (714) 630-0308 – Sales Inquiry: sales@chunghousa.com – Customer Service: as@chunghousa.com – Homepage: www.chunghousa.com Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 28