the strength of better thinking.

• Save up to 50% on heating and cooling bills without spending more for your home Energy Efficiency

• Purchase more home because energy cost savings are deducted from your qualifying debt load Energy Efficient Mortgage

• Merkel/Durasip panels save trees, reduce transportation emissions, conserve energy and can be made from recycled plastics and renewable sources

Green Stewardship

• A Class A fire rating – the most stringent rating available – makes Merkel/Durasip panels the safest in the industry. Fire Resistance

• Piece of mind during violent storms and even hurricane force winds. Hurricane Resistance

• There is no wood to rot, mold or become a nest for destructive insects Mold/Termites/Insects

• Integration of nano-particles and specialty fabrics enhance panels to shield from ballistic events as ell as EMI/RFI Military/Governmental

Unique Selling Proposition for Consumer

  Merkel/Durasip panels allow integration of electrical, windows and plumbing into the pre-fabricated wall

  1 step process vs. 2-4 steps – no concrete, grout, chicken wire or dry wall

Time to Finish Envelope

Unique Selling Proposition for Builder

Level Of

Pre-Fab Possible

Merkel/ Durasip

Block

Stick Frame

Decreasing Build Cost

Increasing Quality Control

Pre-fabricated Home Avg.

Savings of $14,000

1 week 16 weeks

Site-Built Opportunity

  Residential new home starts in the US were 1,300,000 in 2007 - approximately 3 billion sq ft of livable area.1

  US Non-residential starts in 2007 were over 1 billion sq ft.

  2007 usage of Wood Structural Panels in N.A. was 40.2 billion sq ft – making the CSIP opportunity over $221 billion.2

  Currently, Wood SIPs are utilized in about 3% of the residential housing market.1

  The average U.S. home is 2400 square feet and would use approximately 6000 sq ft of CSIP material.1   39,000 homes/year (3% share), Gross Sales of CSIPs = $1.3 billion

  Average Net Selling Price of a Merkel CSIP = $5.50 per square foot

  Production cost for Merkel CSIP is $2.80 per square foot (50% G.M.) Source: (1) National Association of Home Builders (2) APA Engineered Wood Association.

Annual Site-Built C-SIP Opportunity = $221 billion

Merkel/Durasip Panel Home

Merkel Panels are pre-cut

Walls are connected

Walls are fastened together

Corners are fastened

Roof Panels are attached

No heavy equipment required

Stucco is Applied

Finished Coat Applied

Manufacturing Facility

Exit Strategy

  Secure Merkel Market Share of 30 million sq ft annually

  Positive cash flow in 18 months   Build relationships with global partners

  Build relationships with potential merger or acquisition targets

  Develop global material suppliers and distribution network

  Merger or IPO