Read BioIonix, Inc. Investment Opportunity Summary text version

BioIonix - A Breakthrough CLEAN TECHNOLOGY

The BioIonix process is a breakthrough, environmentally-friendly method that disinfects and oxidizes contaminants found in a many different liquid streams. Current and planned applications include water and wastewater treatment, paper and textile brightening, and environmental remediation.

BioIonix, Inc. Madison, Wisconsin Investment Opportunity Summary

The Company BioIonix, Inc. is commercializing a new platform process that solves serious biological disinfection and oxidation problems across many industries. Company products have extremely low operating costs and a fast payback on investment. Serving a $3.0 Billion Market The BioIonixTM process serves a $2.0 billion market for specialized disinfection and oxidation applications where existing products don't adequately meet customer needs. This includes a number of water and wastewater treatment applications. It also provides low-cost on-site generation of hydrogen peroxide, serving a $1.0 billion market in the U.S. alone. $50+ Million Year-Five Sales Forecast Based on serving unmet market needs and simple replacement of high-cost purchased hydrogen peroxide. Full Scale Demonstration Successful BioIonix already has run successful full-scale pilot trials for municipal wastewater biosolids disinfection and oxidation. It also has completed on-site tests that resulted in a reduction of wastewater plant primary effluent BOD levels by up to 50%. First Market: Wastewater Treatment This market offers a focused opportunity for immediate commercial sales. Industrial plants can significantly reduce the BOD fees they pay to their municipalities. Medium-sized municipal plants can cost-effectively achieve Class A biosolids standards. These problems have not been solved by existing processes or equipment. Commercial Sales Early in 2006 BioIonix has a letter of intent for its first commercial order that will provide an excellent reference plant and case history for the municipal wastewater industry. The company expects to be selling and installing commercial products early in 2006. Sales will be through independent commissioned sales agents handling complementary lines of equipment. These will be coordinated by a small company sales and support team. The company has already appointed its first agent for Wisconsin and northern Illinois. For more information, please e-mail: [email protected]

The patented BioIonix technology utilizes a fundamentally new method of electrochemistry whereby a high frequency electromagnetic field converts what historically was a direct current (DC) process to a high frequency alternating current (AC) one. The use of this AC field and other innovations created a process than can be scaled up to large pipe diameters for industrial and municipal plant use, something that cannot be done with DC power. It also dramatically improves energy efficiencies, reduces maintenance needs and prevents performance degradation over time. In the first BioIonix application being commercialized, hydrogen peroxide (H2O2) and other reactive molecules are generated in the water portion of a liquid stream. It does this with high efficiencies and low energy costs. These are very effective disinfection, oxidation and bleaching agents.

BioIonix Power Control Center

The Markets

The BioIonix process serves two broad markets: New market opportunities in applications that have been inadequately served by existing products. Industrial and municipal wastewater BOD reduction, municipal wastewater biosolids disinfection, and temporary military base needs are examples. Replacement of part or all of the hydrogen peroxide needs of companies that currently purchase hydrogen peroxide at much higher prices. An example here with a very large potential market is paper brightening. Product development and testing over the last five years has focused on the municipal wastewater market, particularly medium sized plants that are not well served with processes appropriate for their scale of operation. According to Frost and Sullivan, there are 7,300 medium-sized wastewater facilities in the U.S. Virtually 100% of them produce Class B biosolids today. This is one initial target market for BioIonix, Inc. The BioIonix process has been shown to convert Class B biosolids to Class A, eliminating a serious hazardous disposal problem. In parts of California and Florida, communities are prohibiting any Water/wastewater and papermaking account disposal of Class B biosolids anywhere in their for two-thirds of the $1.0 bill/yr U.S. market jurisdiction, even at landfills. At an average for hydrogen peroxide. selling price of $200,000 per installed unit, a single BioIonix system in each plant represents a $1.4 billion market. The BioIonix process also can be used to reduce biological oxygen demand (BOD) in wastewater primary effluent by up to 50%. This can save substantially on aeration costs. It also can allow industrial plants to meet their wastewater permit requirements and significantly reduce the BOD load fees that they pay. Industrial BOD reduction is a key initial market where purchase decisions can often be made quickly. The BioIonix process can provide final disinfection of municipal wastewater streams, eliminating the hazards of chlorination without the high cost of UV. Skid-mounted portable units could be used at temporary military bases for wastewater treatment and for clean-up of natural disasters such as recently occurred in New Orleans. The BioIonix system has already been demonstrated on recycled paper pulp. The process has been shown both to increase paper brightness and to oxidize adhesives, improving pulp recycling processing performance. BioIonix plans to enter these and other new markets through the use of government grants to fund applications development, and through close cooperation with industrial customers who initially gain experience with the BioIonix process through their wastewater treatment needs.

BioIonix, Inc. Quick Facts

Industries Served Industrial and municipal wastewater Pulp and paper - paper brightening Farm animal waste slurry Military bases and disaster relief Rural home wastewater Water utilities - activated chlorine production Food industry - process sanitization Environmental remediation Sales Opportunities Letter of intent received for first $90,000 order. Sales are forecast: to be $50+ million in year five. Over $100 million per year sales potential. This Financial Round $1.0 million round for commercialization. No current shareholders are offering shares for sale. All funds are to be used in the business. Use of Funds Hire professional staff. Finalize commercial product design. Sell, install and publicize full scale reference plants in industrial wastewater BOD reduction and municipal Class A biosolids production. Hire grant writer to obtain federal grants for new applications development. Fund sales and marketing program. Manufacture and install customer orders. Establish in-house pilot plant for applications development and customer testing. Provide working capital for early growth stage. Please see the BioIonix full business plan for further details.

The Competition

Many different methods can be used to disinfect or oxidize liquid streams. Biological treatment, high temperature pasteurization, lime stabilization, ultraviolet light and chlorine are just a few. Each is successful in the commercial market and each often dominates certain market niches. The BioIonix process both disinfects and oxidizes. And the BioIonix process is the only affordable method for the on-site generation of hydrogen peroxide. The company has already identified specific market niches in the wastewater treatment and pulp and paper industries where the BioIonix process has virtually no effective competition. Please see the BioIonix full business plan for details.

BioIonix Executive Team

The company is run by a team of seasoned business executives oriented to the bottom line. James Tretheway is company president and CEO. He has over 25 years of high-tech general management experience, along with an MBA and a degree in mechanical engineering. Dr. Kenneth Schlager is vice president of engineering and development. He is the primary inventor of the technology. He has a Ph.D. in electrical engineering and an MS in industrial management. Stephen Gorski is an engineering consultant and is backup for Dr. Schlager. He is an electrical engineer with extensive design, manufacturing and regulatory approval experience.

Intellectual Property

The company owns U.S. patent 6,780,306, "Electroionic water disinfection apparatus" and U.S. patent 7,033,481, "Electroionic processing system". This second patent provides very broad protection to what the company believes is the fundamental new field of high-frequency electrochemistry. The company has two additional U.S. patents pending. One further increases the energy efficiencies of the process. The second one extends the company's technology to the generation of hydrogen or oxygen gases. The commercial potential of these applications are speculative at the moment but may represent a significant upside potential for investors. The company has also applied for international patents. These patents are significant assets and their ownership eliminates license restrictions and the cost drain of royalty payments to others. They help prevent a direct competitive response and add to company value, making it an attractive acquisition target. In addition, the company is developing manufacturing and process control trade secrets, along with confidential applications knowhow, further strengthening its competitive position.

Financial Projections

Investor funds will be leveraged with government research grants. Because of the platform nature of the technology, the company expects to qualify for grants from several different agencies, including the EPA, DOE, USDA, NIH, NSF and the Department of Defense. A USDA grant is pending. In addition, BioIonix equipment will typically be sold under terms requiring order deposits, and progress payments, helping manage the company's working capital needs. Within eighteen months the company should be in the position to obtain a bank line of credit based on its order backlog and customer satisfaction history. Serious investors may request our confidential business plan for financial details.

The company's detailed confidential business plan is available for review by accredited investors interested in this opportunity. Please contact:

Exit Strategy

The most likely exit strategy is for BioIonix, Inc. to be acquired by another company making complementary or competitive equipment. Since the BioIonix technology will be used across a number of different industries, this will expose the company and its products to many potential purchasers. Although far less likely than an acquisition, an initial public offering (IPO) could become a viable alternative for BioIonix. Investors have recently targeted water industry suppliers due to the large markets and growth opportunities involved.

BioIonix, Inc.

James Tretheway, President 909 Lake Court Madison, WI 53715 Tel: (608) 255-8824 Fax: (608) 255-7137 [email protected] www.bioionix.com

The BioIonix Investment Opportunity

Company management believes that this investment opportunity will appeal to accredited investors interested in either the biological or physical science fields. This is an early stage, high technology business opportunity with attendant risk. The company expects to grow rapidly and present investors with an attractive exit opportunity in a three to seven year time frame. No investment in BioIonix may be made without the opportunity to review the company's business plan and signature of the subscription agreement. If you are an accredited investor who may have interest in this opportunity, we invite your to contact us for further information.

Published 4-25-2006. Contents subject to change without notice. This summary is intended for accredited investors only and does not constitute a solicitation for investment.

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BioIonix, Inc. Investment Opportunity Summary

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