Nanotechnology Conference

April 27, 2006

Paper Coating – SBR Latex Replacement Technology

2

Agenda

• Introduction to ECOSYNTHETIX INC.

• Overview of SBR Latex replacement technology

• Value proposition

• Contact Information

• Presentation & Product Data Sheet available (as handout)

3

Who are weECOSYNTHETIX is a biomaterials company, positioned to revolutionize industrial products and applications via the introduction of its groundbreaking patented technologies.

What we doProvide a bio-based nanotechnology technology platform as replacement for petroleum-based adhesives (PVA latex, PVOH, etc.) and paper coating binders (SBR & PVA latexes).

4

• Founded in 1996, located in Lansing, MI

• Collaborative network with 14 universities and industrial R&D institutes (MSU, IPST @ Georgia Tech, etc.)

• Strategic Partners: Cargill, H.B. Fuller

• 12 patents (issued & applied), extended in key markets around the world

• Currently commercializing ECOSPHERE® products in packaging and paper coatings

Company Overview

5

Nanoparticle Technology – 8 Patents

In 1999 starch granules were re-engineered at the molecular level into nanoparticles, unlocking new properties

ECOSPHERE® Biopolymer NanoparticlesNative Starch Granules

Effective surface>200 m2/g (est.)

30 µm

200 nm

Size reduced300-600x

6

0

2

4

6

8

10

12

14

1 nm 10 nm 100 nm 1 μm 10 μm 100 μm

DLS measurements show narrow particle size rangeDLS measurements show narrow particle size range

Dynamic Laser Light Scattering (DLS) Measurements

ECOSPHERE® dispersions

7

Nanotechnology Latex Replacement

6. Freight savings7. Provides flexibility for formulation

development8. Energy and labor savings

6. Available in dry powder form7. Available as liquid

dispersion8. Requires no cooking

1. Significant annual savings2. Price stability, since not linked to rising

petroleum prices3. Similar performance in coating colors4. Lab results show more effective binder

with several improved properties5. Simple adjustment of existing coating

recipe – similar runnability

1. Lower latex cost2. Renewable resource based

(chemically modified starch)3. Substitute for SBR latex4. Smaller particle size 80-120

nm (SBR 150-400 nm)5. Viscosity & ultra-high shear

rheology similar to SBR

BenefitsFeatures

8

Pilot paper coating trials – FormulationsTrial No. 1 (ref.) 2 3 4 6 7

Clay parts 60 60 60 60 60 60GCC 90 parts 40 40 40 40 40 40

DL 920 parts 10 7.5 5 2.5 7.5 5

Starch parts 2.5 2.5 2.5 2.5Ecosphere 92202 parts 2.5 5 7.5 5 7.5

FWA (tetra) parts 1 1 1 1 1 1Ombrelub parts 1 1 1 1 1 1Bacote parts 0.5 0.5 0.5 0.5 0.5 0.5Dispex parts 0.15 0.15 0.15 0.15 0.15 0.15

Base paper PM-A PM-A PM-A PM-A PM-A PM-ASpeed m/min 1000 1000 1000 1000 1000 1000Coat weight FS g/m² 10.5 10.5 10.5 10.5 10.5 10.5Coat weight WS g/m² 10.5 10.5 10.5 10.5 10.5 10.5Moisture FS % 5.6 5.6 5.6 5.6 5.6 5.6Moisture WS % 5.6 5.6 5.6 5.6 5.6 5.6Coating unit

Solids % 65.3 65.2 65.3 65.1 64.9 65pH 8.2 8.2 8.2 8.3 8.1 8Brookfield viscosity mPas 1046 1292 1814 1840 944 1254Haake viscosity mPas 40.3 50 62.2 73.4 n.m. 49.2WRV g/m² 105 86 71 64 76 115

free jet / stiff

Pigments

Latex

Starch

Additives

Machine parameters

Coating parameters

9

Pilot coating trial – rheology dataACAV measurement

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

0.00E+00 2.00E+05 4.00E+05 6.00E+05 8.00E+05 1.00E+06 1.20E+06 1.40E+06

Shear Rate [s-1]- Confidential -

Visc

osity

[mPa

.s]

Trial 1 (Ref.)10 pts. Latex2.5 pts. Starch A

Trial 35 pts. Latex2.5 pts. Starch A5 pts. Ecosphere

Trial 510 pts. Latex2.5 pts. Starch B

Trial 75 pts. Latex7.5 pts. Ecosphere

Trial 85 pts. Latex2.5 pts. Starch A5 pts. Ecosphere0.5 - 1 pts. Lecithin

10

Bending stiffness CD

280

290

300

310

320

330

340

350

360

370

380

10 pts latex/ 2,5 pts starch 7,5 pts latex/ 2,5 pts starch/2,5 pts Ecosphere

5 pts latex/ 2,5 pts starch/ 5pts Ecosphere

2,5 pts latex/ 2,5 pts starch/7,5 pts Ecosphere

7,5 pts latex/ 5 ptsEcosphere

5 pts latex/ 7,5 ptsEcosphere

[trial]

[g/m

²]

11

CIE whiteness

90

92

94

96

98

100

102

104

106

108

110

10 pts latex/ 2,5 ptsstarch

7,5 pts latex/ 2,5 ptsstarch/ 2,5 pts Ecosphere

5 pts latex/ 2,5 pts starch/5 pts Ecosphere

2,5 pts latex/ 2,5 ptsstarch/ 7,5 pts Ecosphere

7,5 pts latex/ 5 ptsEcosphere

5 pts latex/ 7,5 ptsEcosphere

[trial] - Confidential

[%] 1.side

2.side

12

Value Proposition

• Priced below your current SBR price• Price stability – not tied to price of petrochemical

feedstocks• Based on pilot plant data 25% to 75% of SBR latex

volume can be replaced with the ECOSPHERE®

product while maintaining product quality• Preliminary results indicate added performance:

– Increased bending stiffness– Increased CIE Whiteness– Improvement in water retention performance– Increase in IGT dry pick

13

Thank You

• Contacts:John van Leeuwen, CEOECOSYNTHETIX INC.905-335-5669 x200 (office)905-688-1276 (mobile)vanleeuwen@ecosynthetix.com

or:Chuck KlassKlass Associates Inc.727-395-9435cklass@compuserve.com