Presentation of India-Israel Joint Venture company

Nurit Nahum , Chairperson February 2014

– Cellaris, an Israeli Technology company, founded by Prof Grader, the Technion head of Energy Program.

– Cellaris has developed a revolutionary Sol Gel technology of manufacturing ULTRA LIGHT CERAMIC FOAMS.

– Cellaris product for the High Temperature Insulation market was successfully introduced to western markets since 2006.

– Cellaris material is friendly to environment. Using Cellaris material proved to bring a significant energy savings of ~30% (!)

– CRIL - A JV company between Cellaris (49%) and CUMI(51%), an Indian leading industrial company, part of the Murugappa $4B group.

– CRIL was established in 2012 in Cochin EZ, India, with the purpose of manufacturing Cellaris products at commercial price and quantity

– CRIL has signed a licensing agreement with Cellaris.

– Manufacturing starts these days.

Cellaris Brief Presentation

The Lite-CellTM Innovation

A unique platform based on an innovative, patented foaming mechanism:

The lightest cellular ceramic

Standard Modules

Custom Custom

products Cellaris

High Temperature Insulation Market*

Temp. Range arket SizeGlobal M

1,000-1,150°C $915 M

1,150-1,300°C $970 M

1,300-1,500°C $500 M

1,500-1,700°C $310 M

1,700°C < $200 M

Total estimated annual market volume 2011 is $2.9B, Equal to 500k Tons.

With 7% annual market growth, the market forecast for 2014 is US$3.5B

*Market data is based on Global High Temperature Insulation market research, MarketsandMarkets 2010

Lite Cell first product line target the Upper Niche of 1300- 1700

LowK next generation, will target 1000-1300 C

HTI Market Segments

Petrochemical 30%

Iron & Steel 9%

Ceramic applications

12%

Alumina application

11%

Powder Metallurgy 3%

Glass Industry 14%

Cement 10%

Refractory application

8%

Other Solar, Aerospace, Fire Protection etc.

3%

Total estimated annual market volume 2014 is $3.5B

With 7% annual market growth

Global Petrochemical and Aerospace Derives market growth

Lite-Cell Edge for an Indian Partner

•Lite Cell was successfully launched and penetrated the market since 2006. Western markets’ leading customers approving Lite Cell's™ value proposition of energy savings, healthy product and friendly to the environment.

•Energy consumption within end customers (Petrochemicals, Steel, Iron, Glass industries) is 40% of manufacturing cost. Therefore energy savings form the major factor driving growth.

•Major market growth is in Asia . •Health issues related with fiber products caused interest and rise of eco friendly organic materials. Regulation is mainly in Europe. •Market consolidation mainly with players in India and China

CRIL – Cellaris India Limited

CUMI – Carburandom Universal Limited, part of the Murugappa US$4B Group, One of Indian leading industrial groups, specialize in manufacturing materials to industrial environments, including Abrasives, Industrial Ceramics, Electro Minerals and Refractories.

Cellaris Ltd. An Israeli Technology company, founded by Prof. Grader, one of Israel's leading Chemistry professors. Cellaris has developed “Lite Cell”, supreme product, IP protected owned by Cellaris, for the High Temperature Insulation market and other potential future applications.

51% 49%

In 2011, Cellaris signed a Joint Venture agreement with CUMI, Part of the Murugappa group to establish Cellaris India

COCHIN Free Industrial Zone

Cellaris India Manufacturing Site

Kochi Industrial Free Zone March 2013

ISRAEL Very Different but Some Similarity –INDIA

• Family orientated, Religious based culture

• Heterogenic Society

• Hard working, highly motivated people

• Highly educational technology based society

• Resourced constrains country

• British rules fundamentals

• Fast developing and changing country

There is no ONE INDIA it is very difficult to generate.

INDIA is more than 150 times bigger in land size and no. of people than Israel nevertheless:

ISRAEL Culture Challenges –INDIA

•RESPECT , Politeness Versus Openness "Hutzpa" •In depth Procedures approach versus 'Rounding Corners" •Time – different perception •Legal papers and agreements versus current situation •Personal achievements versus consensus •Different environment : Colors, smells, noise, Food •Bureaucracy •Different approach to money

Gym versus Yoga culture

• INDIA is a HUGE growing, diversified market

• PATIENCE, Time and Money are key factors to establish business in India

• Find a good and reliable partner. Once you have one - be patient, do not give up.

• Make the effort – visit the place as much as required

• Make very conservative assumptions in any financial / economical planning

Summery