‣ ‣ ‣ ‣ ‣ ‣ EcoSMART Technologies is the world’s leading producer of organic pesticides. Founded in 1992, EcoSMART’S historical focus has been on serving the agricultural, professional and commercial markets. Much of the nation’s booming natural foods market is being supplied by organic growers using EcoSMART USDA Certified Crop Protection products. In the professional pest control industry, EcoSMART technology is used by Orkin, Terminix and other leading PCO’s, to meet the growing demand for natural and organic pest control treatments. EcoSMART also provides technology solutions through licensing agreements. Its exclusive supply agreement with Sergeants Pet Care Products, Inc. provides natural flea and tick control products under the Nature’s Guardian and Natural Defense brand names. In 2008, EcoSMART launched a proprietary line of organic pesticides in the retail market. 2 EcoSMART is now the fastest growing pesticide brand in the United States. Here’s why… 1. EcoSMART is The Safe Pesticide Brand™, offering consumers a completely safe alternative at a time when concerns about pesticide safety have never been higher. 2. EcoSMART is the only major supplier that is 100% committed to safe and natural pesticide alternatives. That’s all we do, while our competitors are primarily known for and focused on their synthetic pesticide brands. 2. EcoSMART products are supported with aggressive national advertising on TV, radio and print. As the word spreads, demand for EcoSMART safe pesticides will continue to grow. 4. EcoSMART products are as effective as traditional synthetic pesticides. Our technology has been proven effective in the highly demanding commercial, professional and agricultural markets for the past fifteen years. 3 ‣ Factory sales of EcoSMART retail products increased four-fold in 2009, and are on track to more than triple in 2010. Three Year Sales History 2008 Actual 2009 Actual 2010 Projection 4 ‣ ‣ ‣ ‣ ‣ ‣ EcoSMART is the only U.S. Supplier with a complete line of EPA exempt (25-b), organic pesticides. This means that EcoSMART is the only brand that can make explicit safety claims. All EcoSMART pesticides are child-safe and pet-safe…and contain pictures of children and pets on their labels (an implied safety claim disallowed by the EPA on registered pesticides.) EcoSMART products feature proprietary technology and are protected by nearly 100 U.S. and international patents. Its product line can not be duplicated. EcoSMART’S revolutionary plant-based formulas are as effective as synthetic chemicals but completely safe for people, pets and the environment. Patented technology kills fast; and is based on natural defenses that plants and trees use to protect themselves from insects and disease. 5 ‣ ‣ ‣ ‣ ‣ In 1997, EcoSMART scientists discovered The Octopamine Blocker, a unique mode of action that shuts down insects’ central nervous systems. Octopamine is the insects’ equivalent to adrenaline; it regulates their heart rate, movement, behavior and metabolism. The unique molecular structure in EcoSMART’S proprietary botanical formulas “block” the Octopamine neurotransmitter receptors in insects. This causes immediate “knock-down”, followed rapidly by the insect’s death. EcoSMART’s botanical formulas also have strong repellency characteristics, keeping new bugs out of the treated area. Mammals, birds and fish do not have receptors for Octopamine, so EcoSMART pesticides have no adverse effect on them. 6 Consumer research has validated that, in today’s pesticide category, safety claims drive purchase decisions, far more so than organic or natural claims. Reasons for Purchase Intent Nov '08 Home Pest Consumer Study (Concept Phase - 68 consumer responses) Safe for Family & Pets 38% Effective 13% Organic 9% Non-Toxic 8% Safe for Environment All Natural 6% 4% 7 Purchase interest based on safety claims is significantly higher than purchase interest based on “natural ingredients” claims, underscoring the importance of EcoSMART’S 25-b exemption. Purchase Intent Based on Claims March ‘08 Ant & Roach/Repellent Consumer Study Safe for Entire Family; Non-Toxic Definitely Will Buy Made with Natural Plant Oil Active Ingredients 3% 46% Probably Will Buy 17% 54% Might or Might Not Buy 0 Probably Will Not Buy 0 Definitely Will Not Buy 0 41% 36% 3% 8 Raid Earth Options 5.5% Bayer Natria 9.2% Hot Shot Naturals 3.3% ‣ Other 7.1% Garden Safe 8.5% EcoSMART 39.3% Ortho Ecosense 27.0% Estimated Dollar Share of Natural Pesticide YTD June, 2010 ‣ EcoSMART is now the leading natural pesticide brand in the United States, with an estimated 39% share of dollar sales through June 2010. EcoSMART market share is up nearly fourfold versus 2009, when it had an estimated 11.2% share of segment dollar sales. Market share estimates based on compilation data using retail POS reports and IRI/A.C. Nielsen national and regional audit data. 9 A growing number of consumers are aware of – and concerned about – the potential dangers of synthetic pesticides. According to the EPA, there are more than two million poisoning incidents reported each year, half involving children under six years old and 90% occurring in the home. Every 13 seconds, a call is placed to a poison control center due to an unintentional poisoning. Mounting scientific evidence has linked the use of synthetic pesticides to adverse human health conditions including birth defects, learning disabilities, asthma symptoms and various forms of cancer. At least 50 deaths have been attributed to exposure to pyrethroids, one of the most commonly used synthetic pesticide ingredients. Several Provincial and Municipal Governments in Canada including Quebec, Ontario and Vancouver have enacted laws restricting or banning the sale of synthetic pesticides for residential landscapes. 10 ‣ Recent EPA regulatory actions will further drive EcoSMART growth and make it more difficult for registered pesticides to operate in the natural/organic market segment. ‣ ‣ ‣ ‣ Proposed new rules regarding False or Misleading Pesticide Product Brand Names would prohibit the use of brand names that imply disallowed safety and environmental claims such as Safe, Safer, Natural, Eco and Earth Friendly. These proposed rules will only apply to registered pesticides, and not 25-b exempt products. Ortho is reportedly discontinuing its ecosense product line. Hot Shot Naturals is now referring to EcoSMART as “the leading national product” in comparative radio advertising. 11 ‣ ‣ ‣ Additionally, a growing number of consumers and consumer-advocate interest groups are demanding “legitimacy” from products making natural and environmental claims; and rejecting those products that do not deliver on their promises. The link below is to a recent New York Times article discussing the rise of lawsuits against companies making false or misleading environmental claims, including a suit against S.C. Johnson and their self proclaimed “green list” initiative. http://online.wsj.com/article/SB1000142405270230450 6904575180210758367310.html?KEYWORDS=VANE SSA+O%27CONNELL 12 No other product line in the U.S. Pesticide Market provides the level of natural and environmental legitimacy as EcoSMART. Just read the product labels to see the clear differences between EcoSMART Safe Pesticides and other so-called “natural” pesticides. Bayer Natria Ortho ecosense Garden Safe Raid Earth Options Safer Brand 13 “Harmful if inhaled. Avoid breathing vapor.” “If inhaled: Move person to fresh air. If person is not breathing, call 911 or an ambulance, then give artificial respiration, preferably mouth-to-mouth, if possible. Call a poison control center or doctor for further treatment advice.” This warning does not appear on any EcoSMART labels! 14 “CAUTION: Harmful if absorbed through the skin.” “Avoid contact with skin, eyes or clothing. Wash thoroughly with soap and water after handling and before eating, drinking, chewing gum, or using tobacco. Remove and wash contaminated clothing before reuse.” This warning does NOT appear on any EcoSMART labels! 15 “ENVIRONMENTAL HAZARDS: This product is toxic to aquatic organisms including fish and invertebrates” “Do not apply directly to water or near water. Drift and run-off may be hazardous to fish in water adjacent to treated areas. Do not contaminate water when disposing of equipment, wash water or rinsate.” This warning does NOT appear on any EcoSMART labels! 16 “Harmful if swallowed ” “IF SWALLOWED: Call a poison control center or doctor immediately for treatment advice. Do no give any liquid to the person. Do not induce vomiting unless told to do so by a poison control center or doctor. Do not give anything by mouth to an unconscious person” This warning does NOT appear on any EcoSMART labels! 17 The EcoSMART brand is supported with heavy levels of national advertising on TV, radio and print. Currently schedules are generating150 GRP’s per week and 2.5 billion consumer impressions. EcoSMART will continue to increase its commitment to heavy levels of national advertising support in 2011 EcoSMART National Advertising Campaign - Spring & Summer 2010 10-May 17-May 24-May TV National Cable 50 GRP'S/Week 14-Jun TV 21-Jun 28-Jun National Cable 50 GRP'S/Week 12-Jul TV 19-Jul 26-Jul National Cable 50 GRP'S/Week RADIO National Network 50 GRP'S/Week RADIO National Network 50 GRP'S/Week RADIO National Network 50 GRP'S/Week PRINT National Magazines 50 GRP'S/Week PRINT National Magazines 50 GRP'S/Week PRINT National Magazines 50 GRP'S/Week 18 Highly targeted national cable TV networks, as well as national and regional network radio programs will deliver EcoSMART’S unique SAFE PESTICIDE message to millions of concerned mom’s throughout the United States. 19 20 21 Works Fast! Kills on contact. Kills ants, carpenter ants, cockroaches, crickets, pill bugs, silverfish, spiders and other crawling insects. SAFE to use around children & pets. Non-Toxic, plant-based formula. 100% food grade ingredients. Supported with national advertising. 22 Works Fast! Kills on contact. Kills flies, gnats, mosquitoes, moths, wasps and other flying insects. SAFE to use around children & pets. Non-Toxic, plant-based formula. 100% food grade ingredients. Fresh natural scent. Supported with national advertising. Source: IRI 23 Works Fast! Kills on contact. Kills wasps, hornets, yellow jackets and other flying insects; also kills nuisance spiders. SAFE to use around children & pets. Non-Toxic, plant-based formula. 18 foot jet-spray to safely reach nests. Supported with national advertising. 24 Keeps away mosquitoes, ticks, gnats & more. Non-Toxic; Safe to use on the entire family, including small children and infants. DEET FREE Formula. Fresh, natural scent. Non-oily. Dries quickly. Supported with national advertising. 25 Source: IRI NEW ‣ ‣ ‣ ‣ EcoSMART DEET FREE Personal Insect Repellent 2 oz. Travel size. Keeps away mosquitoes, ticks and gnats for hours. Ideal travel size can be taken on-board airplanes in carry on bags. Non-toxic. Safe to use on the entire family including small children and infants. ‣ Fresh, natural scent. ‣ Non-oily; dries quickly. ‣ Available in a 12-unit counter display or 12-unit clip strip. 26 Kills and repels over 100 home invading pests. For indoor & outdoor use. SAFE to use around children & pets. Non-Toxic, plant-based formula. 100% food grade ingredients. Easy-to-use 24 oz. RTU. Supported with national advertising. 27 Kills and repels over 100 insects. Works fast! Kills on contact. SAFE to use around children & pets. 100% food grade ingredients; spray and harvest on same day. Use on fruits, vegetables, flowers and ornamentals. Convenient 24 oz. RTU. Supported with national advertising . 28 Food Grade ingredients ‣ ‣ ‣ ‣ ‣ ‣ Kills and Repels garden insects and mites. Works fast! Kills on contact. Safe to use around children & pets. 100% food grade ingredients; spray and harvest on same day. Non-toxic, plant based formula. Use on fruits, vegetables, flowers and ornamentals. 29 Non-selective herbicides are the # 1 selling product segment in lawn & garden. Works fast! See results in hours. Kills all types of weeds & grasses. SAFE to use around children & pets. Non-Toxic, plant-based formula. Easy-to-use 24 oz. RTU. Supported with national advertising. 30 New 64 oz. size. Proprietary bottle design. Ergonomically designed handle for easy application. Better value Weed & Grass Killer; 33% lower cost per ounce versus 24 oz. RTU. Supported with national advertising. 31 New 64 oz. size. Proprietary bottle design. Ergonomically designed handle for easy application. Better value Home Pest; 33% lower cost per ounce versus 24 oz. RTU. Supported with national advertising. 32 Disease control for roses, flowers and shrubs. Prevents and controls most common plant diseases. SAFE to use around children & pets. Controls black spot, rust, powdery mildew, petal blight & more. For use on roses, fruits, vegetables, flowers, shrubs and lawns. Supported with national advertising. 33 The only 25-b, hose-end insect killer for lawns & landscapes on the market. One of the largest segments of lawn & garden pesticides. Safe to use around children & Pets. Non-Toxic, plant-based formula. Easy-to-use hose end spray application. Just connect and spray. Treats up to 5,000 sq. ft. Supported with national advertising. 34 An estimated 40% of consumers prefer liquid concentrates. Works Fast! Kinds on Contact. Safe to use around children & pets. Kills and Repels over 100 insects including ants, aphids, caterpillars, centipedes, chinch bugs, crickets, fleas and more. Treats up to 5,000 sq, ft. NEW 35 Kills and repels over 100 insects. Works fast! Kills on contact. SAFE to use around children & pets. Non-Toxic, plant-based formula. 10 lb. bag for lawn or perimeter application. Treats up to 5,000 sq. ft. Supported with national advertising. 36 Home perimeter treatments are one of the fastest growing segments of consumer lawn & garden sales. Kills and Repels bugs outside, so they can’t come inside. Safe to use around children & pets. 2 lb. container treats up to 1,200 square feet, enough to treat the average home six times. Non- toxic plant based formula. Supported with National Advertising. 37 Unique product position targets two of the most common human health pests. The only 25-b, hose-end yard insect repellent on the market. Kills and Repels mosquitoes, ticks and other nuisance yard insects. SAFE to use around children and pets. Non-Toxic, plant based formula. Treats up to 5,000 sq. ft. Supported with national advertising. 38 Safe & effective alternative to traditional area mosquito and flying insect foggers. Kills and repels mosquitoes and other flying insects. Provides up to 8 hour area control. SAFE to use around children & pets. Non-Toxic, plant-based formula. Supported with national advertising. 39 High powered, oil based formula that safely and effectively eliminates spiders inside and out. Kills Black Widows, Brown Recluse and other dangerous spiders. Underdeveloped market segment. SAFE to use around children & pets. Non-Toxic, plant-based formula. Supported with national advertising. 40 ‣ EcoSMART Home Pest Control significantly outperforms both Bayer Natria and Hot Shot Natural, providing four-times the knock-down power just 1 minute after application. Home Pest % Knock Down German Cockroaches Natria EcoSmart Hot Shot Natural Source: Iowa State University, Department of Entomology, March, 2010 100 92% 92% 92% 92% 92% 90 83% 80 83% 75% 67% 70 60 50 42% 40 30 20 25% 17% 17% 17% 25% 25% 25% 17% 10 0 1 min 3 min 5 min 10 min 20 min 30 min 41 Independent scientific testing proves that EcoSMART Personal Insect Repellent results in fewer bites than the leading synthetic insect repellent. 12 Average Bites 10 Bites / Period ‣ (Lower is better) 8 6 EcoSMART OFF! Family 4 Untreated 2 30 60 90 120 150 180 Minutes Testing performed by Snell Scientific, March 2008. “Evaluation of repellent efficacy of EcoSMART Organic Insect Repellent against OFF Family product.” 42 ‣ Scientific testing also confirms that EcoSMART provides higher levels of repellency and lasts longer than the leading synthetic insect repellent. 120% Average Percentage Repellency 100% 80% 60% EcoSMART 40% OFF! Family Untreated 20% 0% 15 30 60 90 120 180 Minutes Testing performed by Dr. Joel Coats, Chairman, Dept. of Entomology, Iowa State University “Mosquito, culex pipiens, spatial repellency to surfaces treated with EcoSMART Organic Insect Repellent” 43 ‣ EcoSMART Ant & Roach Killer kills four times as many German Cockroaches in the first 30 seconds than Hot Shot Natural Ant & Roach Killer. Ant & Roach % Mortality German Cockroaches EcoSmart Hot Shot Natural Source: Iowa State University, Department of Entomology, March, 2010 120% 100% 100% 100% 100% 100% 100% 100% 100% 80% 80% 60% 60% 40% 20% 13% 0% 30 sec 1 min 2 min 3 min 5 min 44 ‣ EcoSMART Flying Insect Killer delivers five times more knock-down power than Hot Shot Natural Flying Insect Killer in the first 30 seconds after application. Flying Insect Killer % Knock Down House Flies EcoSmart Hot Shot Natural Source: Iowa State University, Department of Entomology, March, 2010 120% 100% 100% 100% 100% 100% 100% 100% 88% 80% 60% 60% 40% 28% 20% 20% 0% 30 sec 1 min 2 min 3 min 5 min 45 In 2011, EcoSMART will transition to a next generation of package design, created to better differentiate between the line’s growing assortment of safe pesticide SKUS. Wavy color bars help differentiate products Real bug/plant images replace renderings 46 Floor Stands/Side Kicks Quarter Pallets Rolling Racks 47 48