Germicidal Business Opportunity
Rich Hanlon &
Susan Anderson
October, 2005
OSI Goals for NAFTA Market
 Opportunities



2003 NAFTA germicidal market was estimated to $39M growing at ~ 18% / yr
Water & waste water treatment is ~ 78%
Air is ~ 10% but fastest growing
 Goals


Enter the Germicidal NAFTA market in phases to minimize risks
25% market share of NAFTA Germicidal in FY09/10
 $24M Sales
 Approach




Focus on water and air
Start outsourcing lamps & ballasts while learning the market
Develop competitive manufacturing of common lamps & ballasts
Introduce OSI technical innovation
3
Strategic Fit
 Light sources are our core business



Customers
 Offers a new line of Sylvania product to existing customers
 Opens doors to new customers
Innovation
 Expands on existing UV technology
Growth
 Allows entry in rapidly expanding market
 Will develop a “pull through” aspect for other lighting SBUs,
Precision Materials and Components (PMC) group and Sylvania
Lighting Service (SLS)
4
Strategic Fit
T5
10%
Specialty
6%
36%
T8
48%
5
T12
Global Market by Region
$39,000
$24,000
$40,000
$40,000
$ (000)
6
Germicidal NAFTA Market by Segment
Sterilization
5%
Reclamation
3%
Medical
1%
Other
3%
Air
10%
Water
40%
Waste Water
38%
Annual Sales $39M
7
NAFTA Market Applications
Unit Sales
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Air
Water
385,000
933,000
Waste Water Reclamation Sterilization
1,330,000
158,000
8
263,000
Medical
Other
58,000
123,000
Market Share and Revenue Prospects
Step 1

Goal: ~ 10% market Share – 2 years
$4 - $5 Million
Step 2

Goal: ~ 25% Market Share – 5 years
$10 - $15 Million
9
Germicidal Lamp Technology
 Water & Air Purification


Ultraviolet light at 254nm generated by lamp
Renders bacteria and microorganisms unable to reproduce
 When DNA is exposed to UV light, it's chemical bonding
characteristics are altered so that cell reproduction no longer
takes place - rendering the microbe harmless.
 Waste Water Treatment


Ultraviolet light at 254nm or 185nm generated by the lamp leads to
Ozone generation
Treating and removing contaminants from wastewater
10
Exposures
Table 3. Radiant exposure (joules per square meter, or watt-seconds per square meter) required to
inhibit colony formation in 90% of organisms
Phages
DNA-Viruses
Bacteria (cont'd.)
Bacteria
32 (13-58)
Bacillus (vegetative)
45
Bac. anthracis
13
Bac. Megatherium
32
Bac. paratyphosus
58
Bac. subtilis
118 (11-365)
Bacillus (spore)
27
Bac. Megatherium
120
Bac. subtilis
45
Bac. anthracis
365
Bac. subtilis (ATCC6633)
11
Bacillus subtilis
152
Bac. subt. spore ATCC6633
29
Campylobacter jejuni
130
Clostridium tetani
34
Coryneb. diphtheria
42
Citrob. freundii (ATCC8090)
64
Enterob. cloaca (ATCC13047)
45 (7-58)
Escherichia coli
30
Escherichia coli
7
Escherichia coli (in air)
54
Escherichia coli (in water)
25
Escherichia coli ATCC 11229
30
Escherichia coli ATCC 25922
58
Escherichia coli K 12 AB 1157
Escherichia coli B/ r ATCC 12407 53
42
Klebsi. pneumon. ATCC4352
15 (4-26)
Legionella
24
Legionella dumoffi
26
Legionella gormanii
15
Legionella micdadei
12
Legionella longbeachae 1
10
Legionella longbeachae 2
22
Legionella oakridgensis
18
Legionella micdadei
11
Legionella jordanis
4
Legionella wadsworthii
25
Legionella pneumophila
20
Legionella bozemanii
20 (8-28)
Leptospira
23
Leptrospira biflexa
8
Leptrospira illini
28
Leptrospira interrogans
80 (61-100)
Micrococcus
61
Micrococcus candidus
100
Microc. sphaeroides
44
Neisseria catarrhalis
35 (15-55)
Pseudomonas aerug.
55
Pseudomonas aeruginosa
43 (21-80)
Salmonella
80
Salm. typhimurium
40
Salm. enteritidis
21
Salmonella typhi
32 (7-85)
Serratia marcescens
17
Shigella paradysenteriae
44 (18-110)
Staph
18
Staph. albus
26
Staph. aureus
110
Staph.epidermis
36 (18-65)
Strep.
22
Strep. haemolyticus
62
Strep. lactis
20
Strep. viridans
65
Strep. faecalis (ATCC29212)
55
Strep. faecalis
22
Strep. pyogenes
20
Strep. salivarius
18
Strep. albus
24 (8-39)
Vibrio
15
Yersinia enterecolitica
35 (30-40)
Parvovirus
40
Bov. parvovirus
30
Kilham rat virus
265
HCC (Dog hepat. Adenov)
Herpes virus 57 (15-165)
70
Pseudorabies virus
67
Herpes simplex MP str.
15
Herpes simplex MP str.
165
Herpes simplex, type 1
18
Vaccinia
RNA-Viruses
Picornavirus
Poliovirus
Poliov type 1 Mahoney
Poliov
Poliov type 1
Poliov Mahoney
ECBO 80
Coxsackiev
Reovirus
Reovirus type 1
Reov type 1 (Lang str)
Rotav
Rotav SA11
Paramyxovirus
Sindbis virus
Newcastle Disease
Orthomyxovirus
72 (36-186)
110
67
133
36
45
186
102 (48-163)
48
163
159
65
35 (15-55)
55
15
35
35
Influenza
1438 (600-2400)
HIV (Lentiv)
600
HIV (HTLVIII)
1450
HIV (Sup T1)
2400
HIV (H9)
1300
HIV (PHA-stim. PBL)
152 (65-310)
Bacteriophage
150
Bac. subt. phage SP02c12
195
Bac. subt. phage SPP1
70
Bac. subt. phage Ø 29
292
Bacteriophage F specific
310
Coliphage f2
65
Staph. phage A994
Torula sphaerica (milk and cream) 23
Yeasts
59 (23-100)
50
Oospora lactis
33-100
Saccharomyces cerevisiae
(baking yeast, brewing yeast)
60
Saccharomyces ellipsoideus
80
Saccharomyces sp.
Fungi
713 (130-3000)
440
Aspergillus glaucus
600
Aspergillus flavus
1320
Aspergillus niger
1500
Aspergillus niger (pasta)
Aspergillus amstelodami (meat) 700
220
Candida paraposilosis
Cladospor. herbarum (cold stores) 500
170
Mucor racemosus
Mucor mucedo (meat, bread, fat) 600
50
Oospora lactis
500
Penicillium chrysogenum (fruit)
130
Penicillium roquefortii
130
Penicillium expansum
440
Penicillium digitatum
1100
Rhisopus nigricans
1100
Rhizopus nigricans (cheese)
Scopulariopsis brevicaulis (cheese) 800
Protozoa
Algae
600-1000
3000-6000
Green algae, blue algae, diatoms
11
Industrial
Aquafine Water Treatment Sub-Assembly
12
Residential
Amway Water Treatment
Under the counter water treatment
$609.40
12 ¾”
Distributed by
Quixtar in U.S.
6 3/4”
13
Municipal
Waste Water Treatment Plant
UV Treatment
Treatment Plant
14
Residential Air
Conditioning Units
Air Carrier (UTRC)
1.Humidifier replenishes moisture to dry air.
2.Evaporator Coil allows the refrigerant to absorb heat
from the air as it passes over the coil surface. The
evaporator coil is located with the indoor unit and is also
referred to as the indoor coil.
3.Infinity™ Gas Furnace provides reliable, highefficiency heating for long-lasting comfort and energy
savings.
4.Air Cleaner improves air quality by removing harmful
and irritating airborne pollutants from your home.
5.Ultraviolet Germicidal Lamp reduces the amount of
pollutants, such as mold, bacteria, fungi and viruses,
leaving your home with cleaner, fresher indoor air.
6.Infinity™ Control is the interface to the Infinity
System. The Infinity System is the only system in the
industry that allows you to control temperature, humidity,
air quality, fan speed and ventilation.
7.Comfort Ventilator combines fresh outdoor air with
conditioned indoor air for improved air quality and
maximum efficiency - great for today's tightly
constructed home.
8.Infinity™ 18 Air Conditioner or Infinity™ 17 Heat
Pump products are the only systems in the industry that
allow you to control temperature, humidity, air quality,
fan speed, ventilation; and they even detect when your
air filter needs replacing. So advanced they
automatically adjust to your system’s needs for peak-
Commercial buildings recycle air – Air purification
reduces or eliminates need for outdoor air
efficiency and performance.
15
Applications
 Air



Whole buildings
 Health care facilities, athletic/health clubs, extended care
facilities, group homes, individual homes, manufacturing facilities
Individual rooms
 Clean rooms, offices, hospices rooms, residential rooms
Vehicles
 Water

Residential and municipal drinking water, water coolers and
dispensers, pharmaceutical water, beverage water, semiconductor
process water, spas and swimming pools, aquariums, cooling towers
 Surfaces

Medical & dental tools, air and water filters, meat, fruit, vegetables,
mail
16
Downstream Ecosystems
 Sell direct to OEM – OEM Account Rep
 OEM sells to customer
 Specify through engineer or end user - CE
 Replacement lamps – I/C Sales Rep & Electrical Distributor
 System warranty – OSI Customer Service
 Group re-lamp service and warranty service - SLS
 Design new lamps – R&D
17
Target OEM Customers
Water Purification





Amway (Drinking water)
Boeing (Drinking water)
Aquafine (Pure water) (Supplies US Filter)
Trojan (Pure water)
Ultra Violet Devices, Inc. (Pure water)
Waste Water Treatment
 Trojan
 Siemens Water Technologies
(previously US Filter)
Air Purification




Sharper Image (Clean air for rooms or personal spaces)
UTCR (Clean air for whole buildings)
Boeing (Cabin air)
Ultra Violet Devices, Inc. (UVDI)
18
Germicidal
NPRs in process
Linear Double and Single Ended
Preheat Start Lamps Availability
UVC
Output (W)
G16T5/4P/SE/OF
5.3
Lamps
Lamps
G25T8/OF
UVC
Output (W)
6.9
G6T5/OF
1.7
G36T5/4P/SE/OF
12.0
G8T5
G10T8/OF
2.5
2.7
G36T5/G5/OF
G30T8
12.0
13.4
G15T8
G20T5/G5/OF
4.9
5.5
G55T8/OF
G64T5/4P/SE/OF
18.0
22.0
Instant Start Lamps Availability
G16T5/SP/OF
UVC
Output (W)
5.3
G14T5/SP/OF
4.0
Lamps
G36T5/SP/OF
UVC
Output (W)
12.0
G64T5/SP/OF
22.0
Lamps
19
Germicidal
NPRs in process
Compact Fluorescent
Product Availability
Wattage
Description
UVC Output (W)
7
GCF7DS/G23/SE/OF
1.9
9
GCF9DS/G23/SE/OF
2.5
11
GCF11DS/G23/SE/OF
3.6
18
GFT18DL/2G11/SE/OF
5.5
24
GFT24DL/2G11/SE/OF
8.5
36
GFT36DL/2G11/SE/OF
12.0
20
Germicidal
NPRs in process
Amalgam
Product Availability
Lamps
UVC
Output (W)
G120T6/4P/SE/OF
43.0
G190T6/4P/SE/OF
65.0
21
Sales Tools
 PIBs
 Application Bulletin

Developing with help from LRC
 Ballast Reference
 Launch Dec 2005
22
Next Steps
 Continue promoting germicidal lamps



Complete sales tool development including training
Involve more sales professionals
Educate stakeholders on technology
 R&D to develop future customers needs

Long life, mercury free, high output
 Monitor results of initial seeding


Customer reaction
Volumes and types moved
 Initiate capital request requirements
 Identify acquisition targets
23