Innovative Logistics Solutions, Inc. And

The Pyromex Group

Introducing

a Dramatic new

Waste to Energy Technology

ILS, Inc copyright @ 2003 Rev 1.5

HISTORY 1989 Development of patented waste

neutralization and solidification system

1992 First demo plant operational in Switzerland

1993 Start of development of pyrolysis technology

1995 Development of ultra high temperature gasification by means of induction electricity

1996 construction of a demo plant in Brentwood, England

1999 Development of industrial plant and delivery of plant to a municipal waste water treatment plant in Germany

2003 Partner with ILS, Inc. for North America launch

PYR MEXILS, Inc.

PATENTSAND TECHNOLOGIES

The Pyromex process and technologies are patented worldwide

The Group possesses 68 patents, patent applications and know-how related to solving waste and environmental problems

PYR MEXILS, Inc.

MISSIONSTATEMENT

To safeguard human health and the environment by using the latest technology to provide efficient and cost-effective, environmentally friendly industrial and domestic waste management and disposal.

PYR MEXILS, Inc.

SOMEWASTE STATISTICS

Innovative Logistics Solutions, Inc. And

The Pyromex Group

WASTE STATISTICSIt

aly

Fra

nce

Sp

ain

Ger

man

y

Gre

at B

rita

in

Jap

an

Sw

itze

rlan

d

Net

her

lan

d

Can

ada

US

A

Country

0100200300400500600700800900

1000

kilo

s in

19

89

ANNUAL WASTE ACCUMULATIONPER INHABITANT IN KILOS

PYR MEXILS, Inc.

WASTE STATISTICS

1975 1980 1985 1989

year

0

100

200

300

400

500

600

700

800

900

1000

kilo

s

USAFrance

EVOLUTION OF THE ANNUAL HOUSEHOLD WASTE ACCUMULATION

PER INHABITANT IN KILOS

PYR MEXILS, Inc.

WASTE STATISTICS

This picture illustrates the quantity of trash produced by an average American family per

year

(over 3 tons)

PYR MEXILS, Inc.

THE PYROMEX TECHNOLOGY

THE SOLUTION!

Innovative Logistics Solutions, Inc. And

The Pyromex Group

ULTRAHIGH TEMPERATURE GASIFICATION

Ultrahigh temperature gasification is the destructive distillation of an organic material.

This distillation process involves the application of intense, indirect thermal energy in the absence of oxygen which reduces the material to combustible gases and a non-hazardous, non-leachable inorganic.

PYR MEXILS, Inc.

WHAT HAPPENSIN THE REACTOR?

PYR MEX

CnHm – – – > CH4 + H2 + C

CH4 + H2O – – – > CO + 3H2

C + H2O – – – > CO + H2

C + CO2 – – – > 2 CO

ILS, Inc.

WHATDOES THIS MEAN?

ORGANIC MATERIAL

Converts to a pyrogas with the following approximate composition

INORGANIC MATERIAL

Converts to a non-leachable, sand or basalt-like, environmentally harmless residue which can be reused

Gas Vol.%

H2 33

CH4 11

CO 36

CO2 18

C2H4 2

PYR MEXILS, Inc.

WHY GASIFICATION WITHOUT OXYGEN?

INCINERATIONPYROMEX HIGH TEMEPRATURE

GASIFICATION

Oxidation with O=OVery slow reacting molecule

Thermal degradation without O=OVery fast reaction molecule

(+100 times faster)

Low temperatureSlow reaction

No risk of recombination of dangerous elements

Great danger of recombination of dangerous elements

Principle differencesbetween incineration and

Pyromex thermal degradation

PYR MEXILS, Inc.

EXAMPLE

Very easy to dissolve in waterVery difficult to handle

CH3CL-C+H2 +HCLCH3CL+7/4O2-CO2+3/2 H2O+1/2 CL2

PYROMEX

HIGH TEMPERATURE GASIFICATIONINCINERATION

PYR MEXILS, Inc.

EXAMPLE OFA PYROMEX PLANT

(OPERATING IN GERMANY)

Innovative Logistics Solutions, Inc. And

The Pyromex Group

FEEDING SYSTEM

PYR MEXILS, Inc.

HIGH TEMPERATURE REACTOR

PYR MEXILS, Inc.

INDUCTIONSYSTEM

PYR MEXILS, Inc.

CERAMICREACTOR PIPE

PYR MEXILS, Inc.

RESIDUE OUTFEED

PYR MEXILS, Inc.

GENERALPLANT VIEW

PYR MEXILS, Inc.

SCHEMATIC

PYR MEXILS, Inc.

TYPICALMATERIAL FLOW

F um es

M arke t

Ine rt M a te r ia l

O w n Use M arke t

E lec tr ic i ty/Hea ting

S team T urbine

S team

A fte rburner

G A S IF IC A T IO N

T ransport

S torage

D ehum idifica tion

PYR MEXILS, Inc.

ECONOMIC CONSIDERATIONS

Innovative Logistics Solutions, Inc. And

The Pyromex Group

REVENUE SOURCES

Tipping fees Recycled material Services rendered

Energy Production Steam Heating Any manufacturing

process requiring energy

AFTER

PYR MEX

BEFORE

Pyromex Technology

ILS, Inc.

ENERGY BALANCE

If a gas engine is used to recover the energy from the

pyrogas, the following energy balance can be assumed:

PYR MEX

Electricity production with a gas engine

1,400 kWh

Required energy for the Pyromex reactor

600-800 kWh

Available for sale

600 kWh

Furthermore, off-heat can be used with

an additional value of

1,800 kWh

ILS, Inc.

ENERGY RECOVERY

Utilization of the pyrogas for heating purposes or industrial applications, replacing oil and gas

Operation of a high temperature afterburner with successive steam production, steam turbine and generator

Operation of a gas engine combined with a generator

Conversion of the pyrogas to hydrogen and production of electricity via fuel cells

Pyromex offers the following energy recovery technologies:

PYR MEXILS, Inc.

PYROGAS TO HYDROGEN

CO + H2O CO2 + H2

CH4 + 2H2O CO2 + 4H2

PYR MEX

At 750°C

=

Conversion of pyrogas to hydrogen

ILS, Inc.

FINANCIAL PROJECTIONSfor ........................ tons / day

INCOME PER TON PER DAY PER YEAR

From Tipping Fees

a)

b)

c)

From Recycling

a)

b)

c)

From Energy Production

a)

b)

c)

TOTAL INCOME

OPERATING COST

Capital Costs

Electricity

Gas

Administration

Maintenance

Labor

Reagents

Rent

Miscellaneous

TOTAL COSTS

PROFIT / LOSS

PYR MEXILS, Inc.

THE PYROMEX TECHNOLOGY

A COMPLETE LINE AND UPGRADING SYSTEM TO TREAT WASTE WITHOUT WASTE RESIDUES

PYR MEX

Rational Economical Environmentally

compatible

ILS, Inc.