JUST JUST WON T CUT IT. hen your PERSONAL SHREDDER. ShredStation Express. Thank You WON T CUT IT. when your JUST PERSONAL SHREDDER WON T CUT IT

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1 hen your Thank You for your interest in franchising ShredStation Express

2 About Us ShredStation Express is a leader in residential and small business information destruction and recycling. Through its various destruction services, ShredStation Express exists to help customers prevent ID theft, comply with privacy legislation and protect the environment. ShredStation Express isn t just focused on destroying paper or electronics; we are in the business of destroying information. While we feel it is essential to recycle paper or old electronics, our top priority is to destroy the information contained in each product to protect the privacy of our customers. hen your

3 Most people have several boxes of sensitive documents or an old computer that they know they should destroy, but they don t know who to call to get rid of it securely. ShredStation Express is a home and business pickup service that can destroy those documents and electronics. We enable consumers and businesses to establish a formal system for destruction to comply with privacy laws and avoid fines for improper disposal. Identity theft and personal privacy invasion are at all time highs. The careless disposal of sensitive information can lead to a world of trouble. Simply putting documents in the trash can not only cost people their identity and ruin a good credit score, but as a business, companies could be breaking the law and risking thousands of dollars in fines. ShredStation Express is a document destruction company that helps protect customers from invasions of privacy and ID theft. ShredStation Express dispatches service vans to homes and small businesses to pick up and destroy sensitive documents. There is no limit to the number of boxes ShredStation Express will pick up and the company will also destroy old computers and other e-media including cell phones and PDAs. The service is ideal for customers that have several boxes full of information and can t justify spending the amount required to have their home serviced by an industrial shredding company nor do they want to spend hours trying to use a home shredder How ShredStation Express works: A customer places an order and schedules a pickup online at or by calling SHREDXP. A Certified Destruction Agent will confirm the pick-up day and time and arrive at the designated pick-up site when scheduled. The Agent takes the boxes to a ShredStation Secure Destruction Facility and destroys all materials. The customer receives a Certificate of Destruction via mail or .

4 Market Drivers The destruction of documents and e-media containing sensitive and private information is getting a significant push from several angles. These market drivers continue to advance ShredStation s place in the market and have been key factors in the company s rapid growth. Identity Theft Awareness Identity theft and privacy protection awareness are at all-time highs due to hen your constant media attention and an increasing number of data breaches affecting millions of people. Identity theft is the fastest growing crime in America. Nearly 9 million reported adult victims in 2007 (children are increasingly becoming victims as well). Nearly $50 billion annual losses in Legislation The FACTA Disposal Rule requires companies as well as individuals with access to consumer data to destroy any material containing personal information. HIPAA requires Health Care Providers to anticipate and safeguard against breaches in security; violations are punishable with up to 10 years imprisonment and $250,000 in fines (2007 had 7,176 violations the most ever). The Gramm-Leach-Bliley Act Safeguard Rule and Financial Privacy Rule set guidelines for companies on the collection and disclosure of customers financial information. Dramatic increase in Government prosecution - in 2007 more than 470 companies were found guilty of data breaches responsible for exposing the private information of more than 127 million people. 44 states, the District of Columbia and Puerto Rico have adopted breach notification laws, adding pressure for companies and individuals to establish systematic and secure destruction programs. Environmental Awareness & Recycling Increased awareness of environmental issues including global warming and rising greenhouse gasses, energy conservation and the importance of recycling. Consumers are seeking alternatives for disposal of material that would otherwise end up in the e-waste stream overseas or in domestic landfills.

5 Market Potential A host of factors are contributing to the success of ShredStation Express and demand for our services in the residential and small/medium-sized business markets. Personal/Home shredder sales are over $700 million, yet there is a consistent decline in consumer satisfaction with these products. 22 million businesses with less than 10 employees, and 90 million households. 25 million people working from home offices/telecommuting, who must individually protect and properly dispose of proprietary company information. More than 70 million Baby Boomers retaining unnecessary personal records. I was looking into a number of franchise opportunities from restaurants to cleaning services and none of them were able to give me the kind of flexibility ShredStation Express TM could offer. Other franchises require round-the-clock and weekend hours but with Express, you operate during normal business hours and spend very little time at a desk. Joseph Stover, York, PA

6 Electronic Media Destruction A significant opportunity for ShredStation Express franchises is the destruction and recycling of electronic media. More than 1 billion obsolete electronic devices and computers containing sensitive data are in homes and offices throughout the country (500 million expired in 2006 alone). Considering the rate at which we all consume the latest technology and the frequency at which our electronics are updated and improved (made faster, more memory, etc.), there will be even more sensitive data contained in these devices resulting in an even greater need for it to be securely destroyed. As with our commitment to paper recycling, none of the electronic media we destroy hen yourwill PERSONAL ever end up in SHREDDER landfills. As a ShredStation Express Franchise, you benefit from state-of-the-art Secure Erase technology to deliver the most secure and complete hard drive destruction to businesses and consumers alike. Our Digital ShredStation TM system has been approved by Government agencies including the Department of Defense, the FDIC and countless other groups for whom security is a priority. Secure Erase sanitizes hard drives beyond forensic reconstruction without compromising care, custody and control. Compact mobile units enable franchisees to provide on-site hard drive destruction to customers and businesses in an efficient and affordable way. Provides customers with a reusable asset once data s been destroyed. So it s a green solution. As a business in California, we have some of the most aggressive environmentally-conscious legislation and business practices. I am seeing a lot of added benefits to being such an environmentally friendly business. Not only do I own my own business, but I have the satisfaction of really helping my customers take care of something important to them and their family. Sandy Caso, San Diego, California

7 What you get Operations: ShredStation Inc. brand power affords you the ability to operate your ShredStation Express business under our trusted and established name. Centralized Call Center handles all orders and customer inquiries so you can focus on growing your business. State-of-the-art proprietary order placement, disbursement and e-commerce system. Simple operating model focused on service and security. Fully branded vehicle with Global Positioning System. Hand-held barcode scanner and printer. Franchise Starter Package that includes business cards, letterhead, stationery, branded literature and sales collateral. Automated technology enabling you to manage your customer relationships. Access to ShredStation s Intranet, newsletters, sales meetings, conferences and webinars. Digital ShredStation. This is a machine that digitally sanitizes hard drives to remove all data.

8 Training: field training. hen your A comprehensive, in-depth training program combining classroom-style and Includes detailed instruction on the overall industry, how to get your business up and running, how to maximize profits, sales and marketing, vehicle safety, plus on-site field training with current franchisees. Identity theft risk management training certification program available. Refresher courses as needed for you or your staff. Coaching/mentoring by experienced franchisees. Marketing: Access to a robust local marketing program featuring a variety of proven promotional/marketing materials and tactics. Access to a database of sample advertising for a variety of media including print, radio and Internet promotions. Guidance through the development of sales-generating strategic partnerships. Group purchasing power resulting in reduced rates for uniforms, equipment and advertising. EXPRESS INFORMATION Most people have several boxes of sensitive documents or an old computer that they know they should destroy, but they don t know who to call to get rid of it securely. ShredStation Express is a home and business pick-up service that can destroy those documents and electronics. We enable consumers and businesses to establish a formal system for destruction to comply with privacy laws and avoid fines for improper disposal. Identity theft and personal privacy invasion are at all time highs. The careless disposal of sensitive information can lead to a world of trouble. Simply putting documents in the trash can not only cost people their identity and ruin a good credit score, but as a business, companies could be breaking the law and risking thousands of dollars in fines. ShredStation Express is a locally [franchise] owned and operated document destruction service that helps protect customers from invasions of privacy and ID theft. ShredStation Express dispatches service vans to homes and small businesses to pick up and destroy sensitive documents. There is no limit to the number of boxes ShredStation Express will pick up and the company will also destroy old computers and other e-media including cell phones and PDAs. The service is ideal for customers that have several boxes full of information and can t justify spending the amount required to have their home serviced by an industrial shredding company nor do they want to spend hours trying to use a home shredder. Training Marketing Materials Equipment

9 The Investment ShredStation Express Franchises offers one of the lowest investments available and a high potential for growth. The initial investment and ongoing fees required for franchise operations are listed in detail in the company s FDD. Home Office Storefront/Light Industrial Initial Franchise Fee per Exclusive Territory (up to 100K population)* $25,000 (one time fee) $25,000 (one time fee) Marketing Fee $6,000 (one time fee) $6,000 (one time fee) Start-up Investment (down payments, facility-related expenses, equipment, etc) $15,000 - $20,000 $74,000** Working Capital (first year) $45,000 $75,000 Investment Range $91,000 - $96,000 $180,000 NOTE: These amounts are an approximation and may vary, upward or downward, depending upon your existing operation, office location and region of the country. * Additional Exclusive Territory Fees (ea. additional 100K population) = $5000 ** May vary due to cost and terms of equipment purchase I initially wasn t sure I wanted to start a franchise in an industry I knew so little about but ShredStation Express gave me the insight and tools I needed to hit the ground running. They made the entire process of owning my own business very efficient, affordable and enjoyable. Bob Nichols, Fairfield, CT

10 How to Obtain Your Own ShredStation Express Franchise Review information included in this Welcome Kit. Complete confidential application for Franchise. Participate in one of our information Webinars. hen your accepted. Application reviewed and qualifications Receive and review Franchise Disclosure Document (FDD). Conference call with ShredStation Express so we can get to know you better. Schedule a personal meeting with company management. Execute Franchise Agreement and submit franchise fee. With a customized branded vehicle, ShredStation Express training, and experienced marketing support for your opening, your successful ShredStation Express franchise will be ready for business!

11 Notes

12 hen your We re looking for savvy, dependable and enterprising individuals ready to take part in our high-growth franchise opportunity. If you have not already submitted your contact information, please visit and click request more information. We will contact you shortly to answer any questions you may have about starting a ShredStation Express Franchise. We re looking forward to getting you one step closer to owning your own business. SXP00102