Target Market Clean water in the United States and most industrial countries is in increasingly short supply, especially for industrial applications. Further, for most industries, the cost for clean water is growing rapidly as is the cost of waste water discharges to municipal sewers. Recent estimates indicate that U.S. industries spend more than $10 billion annually for processing water and another $10 billion to treat and dispose of water contaminated with metals. During recent years, a compelling combination of economic drivers has emerged that is supplementing environmental compliance in the U.S. industrial water treatment market. Specifically, the price of process water continues to escalate as does the cost to treat effluent, which means that industrial water users are paying at both ends. This convergence of major cost factors is driving the demand for more capable, efficient and less labor intensive treatment systems. These systems must more cost-effectively treat, reclaim and recycle water; minimize waste discharges; and, in many cases, recover valuable metals. The following short list highlights the four priority industrial and metal market segments that Renovare believes can substantially benefit and reduce costs using RenoCell-based products and systems: * Printed Circuit Boards * Electronic Components * Metal Finishing * Precious Metals Other RenoCell-based opportunity market segments include: * Imaging Silver Recovery * Automotive * Contaminated Groundwater * Aerospace * Battery Manufacturing * Hazardous Waste Facilities * Smelters * Landfill Leachate * Pulp and Paper * Mining

Competitive Advantage RenoCell is the high performance, low cost of ownership method for the removal and recovery of metals from process and waste water. RenoCell produces the ultimate concentrate - SOLID METAL. RenoCell embodies the major features and advantages of electrochemical processes including: *Use of electron as mass-less reagent *Electrical energy input requires only mild reaction conditions *Potential for process enhancement This results in the following benefits: *Can match performance to changing feed composition by current control *Remote, automatic operation *Safety interlock of current interruption *Minimize secondary waste production *Reduced disposal costs *Compact designs *Minimize plant costs *The ultimate concentrate - SOLID METAL These and numerous other metal removal, recovery and recycle applications, are viable because of the following advantages of the RenoCell technology: *Porous Cathode -High metal extraction rates -Effective and efficient at very low concentrations (less than one ppm in most cases) *Carbon Felt Cathode -High surface area and performance -Low cost consumable cathode *Easy Metal Removal -Quick change replaceable cathode cartridges -Low operational manpower requirements *Compact Robust Design -Ideal for rugged industrial environment -Very small footprint (or wall mounted) *Low Capital Cost -Constructed from standard, low cost materials and components -Highly modularized design *Design Option -Allows treatment of anodically sensitive solutions This technology is patented, IP is aggressively developed and protected, and coupled with its factor of 100 to 1000 improvement in performance, results in this cutting edge technology base having substantial performance and legal barriers to entry for competition.

Underlying Technology RenoCell brings an advanced electrochemical technology to the needs of the electronics manufacturing and related industries for high-performance metal ion removal, with reduced water use and reduced cost of treatment Metal removal through electrochemical deposition is a well-established and widely used in many forms throughout electronics and other metal plating industries. Conventional means to remove metal ions include a number of older technologies- precipitation, ion exchange and membranes. Increasingly stringent specifications has required larger, more complex and costly conventional systems. This need is often more effectively provided by the patented electrochemical cell technology - RenoCell. Electrodeposition of a metal occurs at the cathode of a cell. RenoCell allows effective use of three-dimensional (3- D) cathode materials, e.g., porous carbon. The 3-D cathode greatly enhances the performance of the cell since the porous carbon element has at least a 500 times greater effective surface area than a 2-D electrode of the same size. The patented design makes this very high surface area available for metal deposition at higher current efficiencies, lower current densities, and higher deposition rates than conventional cells. RenoCell is capable of factor of 100 to 1000 lower final concentration of metal ions, and 3 to 10 or more times higher current efficiency than other electrochemical cells down to metal concentrations of 5 parts per million (ppm). The improvement is even greater between 5 and 0.1 ppm for most metals and applications since these low levels are not even possible by other commercial cells. The net result is that the RenoCell reaches lower metal ion concentrations while using, less energy to remove a given amount of metal. The RenoCell is constructed of plastic tubular sections mounted vertically. The standard 1 meter (m) unit consists of a 1 m long polypropylene housing with an outside diameter of 200 mm. The area of the cathode this device, on a 2-D basis, is approximately 0.23 m2; however, the actual plating surface of the carbon cathode is at least 115 m2. A smaller standard cell is also available consisting of a 0.5 m long housing with a 3-D cathode area of 55 m2. When the cathode is completely plated with metal to the point of blocking virtually all flow through the cell, as indicated by high pressure drop, the cathode is replaced. Metal-laden cathodes can then be smelted or otherwise handled. For certain applications, a variation is the "divided" RenoCell, where a membrane (e.g., a DuPont cation exchange membrane) is positioned concentrically between the cathode and anode. In this case, two electrolyte solutions, anolyte and catholyte, and dual solution storage, circulation and control systems, are used. The divided cell is applied to solutions containing species that can be oxidized at the anode and would interfere with the metal deposition process, e.g., chlorine generation from aqueous chloride solutions. The divided RenoCell substantially expands the potential applications for RenoCell. Renovare is complementing the RenoCell technology by taking advantage of advances in power supply design, operating alternatives to dc powered electroplating, and fully Internet-capable process controls, monitoring and on-line support. This includes smart adaptive process control, maintenance monitoring and other features required to minimize the end users needs for in-house technical support. Thus RenoCell-based systems will enable end users with this advanced technology to benefit from superior low-cost, high-performance metal removal resulting in improved operations, wastewater minimization, and reduced costs of products.