TO WHOM IT MAY CONCERN. Dear Sirs!

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1 Dear Sirs! TO WHOM IT MAY CONCERN First of all, we address to those people for whom solution of problems connected with water purification is a warranty of survival. In order to use water resources we need new technological ideas. The last exhibition "Aquatec 2012 demonstrated, that leading companies don't have new ideas. We are proposed only developments from the past ages. LLC "NPK EKOLOG" has a complex of new technologies for purifying potable, waste and recycled water. The basis of these developments includes new scientific fundamental ideas connected with the principles of electrochemistry. The international scientific community approves our developments (the letter from the President of International Club of Scientists Klyushin Y.G. is attached to project No 2 of the LLC "NPK EKOLOG"). The correctness of chosen research directions is confirmed by a long-term work of the LLC "NPL EKOLOG" in the area of creation of various installations and technologies for getting sodium hypochlorite safe reagent, which is used for disinfection of water instead of a dangerous reagent chlorine. Our installations work in the water and drainage system of Primorski Krai (Vladivostok) in the water and drainage system of Ivanovo, Tutayev, at the Izhorskiy plant. Till the end of this year our installations must be implemented at the Smolenskaya APP and in the water and drainage system of Petrozavodsk. Considering cost and technological parameters, our installations are ahead of the best foreign samples. (Enclosure Project No 1 of the LLC "NPK EKOLOG" prospect). The scientific value of works is confirmed by introducing the technology developed by us (Russian patent No ) to the digest of the RF Rospatent "Priority Directions of Science and Technology Development". We won a patent dispute with the Siemens group for the enjoyment of technology, protected by Eurasian patent No EA. Our proposals:

2 Together with our scientific and production partners we propose complex collaboration including usage of our developments and technologies for disinfection of water, our scientific and development works for water purification and demineralization, disposal and usage of waste from the treatment plants, extract of hydrogen from the sea water. (Enclosure Project No 2 of the LLC "NPK EKOLOG" prospect). Since the Ministry of economic development and trade of the Russian Federation promotes our developments abroad, we think that our address is directed to those who accept decisions at the level of international collaboration. Within the frames of proposed international collaboration we primarily propose to review our developments and exchange views with interested participants of collaboration. Enclosure Prospect of the LLC "NPK EKOLOG" Academician of the International Academy of Science, Ecology, Human Safety and Nature. Candidate of Science Itkin G.E. Our contacts: , Russia, St. Petersburg, Kondratievskiy pr., 72, POB 264 Telephone, fax (812) E- mail: ekolog spb@list.ru Web-site

3 REPUTE IS BETTER THAN BENEFIT «EKOLOG» RESEARCH AND PRODUCTION COMPANY INNOVATIONS FOR SUCCESSFUL INVESTMENT City of St. Petersburg 2012

4 REPUTE IS BETTER THAN BENEFIT «RPC EKOLOG» LLC was established in 1988 under aegis of the Research and Engineering Department of Leningrad Executive Committee to solve problems of the municipal systems. For Merits in Business Activities.

5 REPUTE IS BETTER THAN BENEFIT Innovative Project No.1 Electrolysis Technology. Sodium Hypochloride Production Units. RECOGNITION OF ACHIEVEMENTS Electrolysis technology has been included by the Russian Patent Office into a book «Priority Segments of Science and Technology Development. Prospective Inventions». Russian authority has been acknowledged under legal proceedings with «Ecocontrol C» Company (a dealer of Siemens Group). Third Prize of the St. Petersburg Government for the best innovative work in The International Expert Board at «Clearwater» International Fair 2010 selected the technology of «RPC EKOLOG» LLC among the best ones. 10 Russian and one Eurasian patents have been obtained.

6 «TAMBOVSKOYE OKTB» OAO ELECTROLYSIS UNIT IMPROVEMENT STAGES An electrolysis unit E-5 of 5kg/h capacity equivalent to active chlorine in hypochlorite. Sharia and Ivanovo Vodocanal Companies, Izhorsky Zavod, St. Petersburg An electrolysis unit E-10 of 10kg/h capacity equivalent to active chlorine in hypochlorite. Tutayev and Vladivostok Vodocanal Companies, «Primorsky Vodocanal of «BGU» Station, and «Gornostai», «Smolensk NPE» An electrolysis unit E-20 of 20kg/h capacity equivalent to active chlorine in hypochlorite. The Republic of Kazakhstan, Petrozavodsk Vodocanal Company.

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8 «TAMBOVSKOYE OKTB» OAO RANGE OF MANUFACTURED UNITS (PRODUCED BY «AVANGARD» OAO and «RPC EKOLOG» LLC) If a hypochlorite and salt mixture produced under a conventional electrolysis method is diluted with water and the diluted product is electrolyzed, then the mass of salt conversion mass into hypochlorite increases in proportion to the dilution, approximating M. Faraday s Electrolysis Law. Unit Type Capacity equivalent to active chlorine in hypochlorite Power supplies Circulation pumps Batching pumps Ventilation Current, A Volta ge, V Quantity Capacity m 3 /h Quantity Capacity m 3 /h Atmosph Quantity Capacity m 3 /h eric pressure E E , E Customized, E ejector batching system RUSSIAN TECHNOLOGY ADVANTAGES Parameter Salt consumption rate per kg of active chlorine in sodium hypochlorite, kg Power consumption rate per kg of active chlorine in sodium hypochlorite, kw Performance of Wallace &Tiernan units, Vodocanal Company, Ufa Performance of «Ekolog» RPC, «Avangard» OAO units, Vodocanal, Vladivostok Chlorine concentration in hypochlorite 8 г/л 8 г/л Distance between electrodes, mm Requirements for water Demineralized water, strict temperature conditions Common, no temperature requirements ATTENTION!!!! Process performance of Russian electrolysis units can be much better, if water and salt treatment is incorporated in the process, thereby decreasing the distance between electrodes to 1 mm.

9 CУЩЕСТВО ИННОВАЦИОННОЙ ТЕХНОЛОГИИ ЭЛЕКТРОЛИЗА ВОДНОГО РАСТВОРА СОЛИ If a hypochlorite and salt mixture produced under a conventional electrolysis method is diluted with water and the diluted product is electrolyzed, then the mass of salt conversion mass into hypochlorite increases in proportion to the dilution, approximating M. Faraday s Electrolysis Law. The observed effect permits to start an electrolysis process with a high salt concentration, thereby enabling to save power and use salt most efficiently. SODIUM HYPOCHLORITE PRODUCTION PROCESS FLOW SHEET

10 HIGH-CONCENTRATION SODIUM HYPRCHLORITE PRODUCTION TECHNOLOGY The equivalent active chlorine content in electrolyzed sodium hypochlorite amounts to 8g/l. A previously unknown technology has been found and tested, which has permitted to increase the active chlorine content in electrolyzed sodium hypochlorite to 80g/l on a cost effective basis. The offered technology changes principally the market of electrolyzed sodium hypochlorite. Central high-concentration hypochlorite production facilities will permit to meet the requirements of both minor and major consumers as well as a public demand for consumer chemicals. At present construction of a factory to produce high concentration hypochlorite based on low concentration sodium hypochlorite is in progress. Economic effects of such an event are apparent. One liter of «Belizna» bleaching agent costs within Kopeck 40, while its retail price is at least Rouble 7. The Russian Consumer Supervision Agency s Department has issued state certificates for various kinds of consumer chemicals such as «Belizna». HIGH CONCENTRATION SODIUM HYPOCHLORITE PRODUCTION TECHNOLOGY IS IN AN INTERNATIONAL PATENTING PROCESS

11 REPUTE IS BETTER THAN BENEFIT Innovative Project No.2 «TAMBOSKOYE OKTB» OAO Electrochemical separation is a new water treatment process. Use of previously unknown effects. RECOGNITION OF SCIENTIFIC AND PRACTICAL IMPORTANCE TECHNOLOGY AND UNITS ARE IN AN INTERNATIONAL PATENTING PROCESS

12 NEW WATER TREATMENT EFFECTS 1. A water treatment effect of dispersed particles on perforated surfaces, which size of openings is larger that the largest particle size. The observed effect of dispersed mixture segregation is explained by the fact that in case of a longitudinal suspension flow along perforated planes, liquid and dispersed particle flow paths are governed by the difference in probabilities relating to free passage of water molecules and dispersed particles through openings in the perforated planes. Importance of the observed effects goes beyond the pragmatic water treatment problems, dealing with movement features described in quantum mechanics. 2.An effect of spontaneous variations in size of openings in perforated surfaces When a flow of gas bubbles passes inside a narrow inter-electrode space between perforated surfaces, their openings change spontaneously the size by a flowing screen of gas bubbles. 3. A foam separation effect When a liquid to be treated is supplied onto a foam blanket produced by coagulant flakes and hydrogen bubbles, both the generation rate and strength of floatation complexes increase drastically as opposite to normal floatation within a reactor volume where floatation complexes are generated by air bubbles with dispersed particles attached to them. 4. An electrochemical separation process time lag effect When aluminum electrodes are used as anodes and cathodes, an electrochemical separation process is accompanied with anode corrosion and coagulation. For power saving purposes, electrodes are divided into two clusters, each being connected alternatively in a pulsed manner to a power source, while the other ones are disconnected. A time interval between power disconnection and repeated connected is less than the electrochemical process attenuation time.

13 «TAMBOVSKOYE OKTB» OAO ELECTROCHEMICAL SEPARATION UNIT FLOW SHEET ELECTROCHEMICAL SEPARATION UNIT TESTING DATA Indicator description Source wastewater Treated water Suspended particles mg/dm Petroleum products, mg/dm >0.1 Fe, mg/dm >0.1 Chemical oxygen demand, mg/dm 3 Biological oxygen demand, mg/dm 3 Phosphorus, phosphates, 3.1 >0.1 mg/dm 3 Ammonium nitrogen, mg/dm Waste liquid flow rate, mg/dm 3 Power consumption rate, kw/m

14 An electrochemical separator should operated within a chain of process apparatus combined with a clarification tank under a process flow sheet (Fig. 1) Water to treatment Clarification tank Electrochemical separation Sand fraction Treated water Fig. No.1 Process flow sheet An electrochemical coagulant is more efficient than a chemical one and it is expedient to produce it from aluminum electrodes just at the consumption site that to use imported low concentration coagulant solutions.

15 ELECTROCHEMICAL SEPARATION UNIT

16 THERMAL POWER GENERATION AT CONSUMPTION SITE ENERGY STRATEGY OF VODOCANAL COMPANIES The share of electrochemical processes used for production of sodium hypochlorite and water treatment within production cycles of Vodocanal Companies is negligible now. Innovations offered by «EKOLOG RPC» improve significantly the prospects of this business due to higher water treatment process indicators and due to a growing energy efficiency of Vodocanal Companies at large. The latter seems to be possible through direct combustion of hydrogen which release accompanies any electrochemical processes. Having spent 7100kW to produce 1775kg chlorine in hypochlorite, it is possible theoretically under a stoichiometric ratio of an electrochemical reaction to produce 100kg hydrogen as a side product. As per a known data, in case of simple combustion of 1kg hydrogen, about Kcal ( 6698kW) is released. Consequently, combustion of 100kg hydrogen permits to produce Kcal ( kW). Much more impressive is a data on combustion of hydrogen generated as a side product of electrochemical water treatment. High cost effectiveness of electrochemical processes becomes apparent. So far, an opportunity of hydrogen combustion under an industrial environment of Vodocanal Companies has been considered as a utopia due to high fire and explosion dangers. «EKOLOG» RPC HAS DEVELOPED SAFE HYDROGEN COMBUSTION TECHNOLOGY. VODOCANAL COMPANIES MAY BECOME CLEAR WATER AND CLEAR RENEWABLE ENERGY PRODUCERS

17 OUR CONTACTS Registered Office: 72 Kondratievsky Pr., St. Petersburg, Mailing address: P.B. 61, Letter A, 14a Repina St., St. Petersburg Phone/Fax: (812) Website: Managing Director: Mr. Itkin, German Evseyevich Executive Director: Mr. Klimov, Maksim Valentinovich