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L101 141 1 77t] GU.LJ J�_ u"•• . . . 1� + NOVAS ENVIRONMENTAL INC. , Tradng Symbol: NVUS (>yAsDA% MCBS) Suite 900 14900 N E 8d` Avemre,Bellevue, Washington 98004,Toll Free Telephone(888) 874-1133 PtAeae The major customers for Novus Environmental Inc. will be government agencies since they give purchasing priority to products made from recycled materlals. PLANT OPERATIONS: Production equipment consists of two conveyor belts, a tire shredder(24 hour 15 day a week operation), a matrix mixer, product moulds, and material handling equipmewt_ The cost to equip a single grinder plant is approximately US$2.3 million. Actual operating configuratlons may include facilities with multiple conveyers, grinders and mixers_ Multiple shift production is an available option based on the market place served. Multiple plants will be required to balance transportation costs and local meirtcet requirements. The production process is relatively uncomplicated and presents no threats to the environment in any way_ Tines are fed into the shredder via a conveyor system. Shredded material is conveyored to a temporary storage location. Predetermined exact quantities of shredded tire, adhesive and other raw materials are combined in a mixer for a precise period of time. The mixture is poured into moulds and left to set The product is then removed from the moulds and placed Into storage to cure before being delivered to the customer. FINANCIAL: Operations: Revenues will be generated through the sate of the moulded end products that conform to the procurement lists issued by the Federal, State and County procurement officers and enjoy the preferential purchasing policies regarding recycled and domestically manufactured products_ EBIT(earnings before income tax)per single grinder plant is estimated to be US$2 million exclusive of fire tipping fees Depending on the market being served, plants may have multiple Grinders, Mixers etc- and as a result will generate prof is greater than US$$2 million. 'Tipping fees ata a cash inventive paid on a per unit bmis to a sold waste recyc rig processor by the Federal,state,and county govemrrienta. A preliminary estimate of the potential scope of future operations would encompass the equivalent of 155 single grinder plants with gross revenues of 735 mllgon and ESIT of USS 313 million exclusive of tire tipping fees. Assumptions: • Market Size-258 million scrap fires generated each year 3 Billion scrap tires in stockpiles • Market Share—227.5 Million scrap tines(7% of available scrap fires) The foregoing contains forward-looking statements. which are based on current expectations. Actual results, including the timing and amount of revenues recognized, contracts awarded and performed and net income may differ due to such factors as: delays in payment on contracts due to dealings with governmental and outer entities; fluctuations In operating costs associated with changes in project specifications; economic and other conditions affecting the agility of prospective clients to finance projects: and other risks generally affecting the financing of Prolacts. Incorparatcd in tho Siete of Delaware,USA. Transfer Agent Srgnafure Stock TTmstcr Inc. 75,000,61n Common Sham Authorized '0 480,000 Common Shares issued 15,000,000 Bear Restricrivc Lsgcnds undo ntic 144 5,4W,000 N,5 It.r,5tricttve Legends Page z c f 2 All Rights Reserved