1. Ford Baertlein, Jill Fery, Doug Hegney, Paul Harryman, Yu(Mimi) Qu

2.  Since 2005, the U.S. has been the world’s leading producer of ethanol. In 2003 the demand for ethanol in the U.S. began to outpace domestic production.  In 2008, the federal government spent $9.2 billion on ethanol subsidies.  It is forecasted that conventional oil production will peak by 2020.  The U.S. Energy Independence and Security Act calls for 36 billion gallons of ethanol per year to be in the U.S. transportation fuel pool by 2022. Currently the U.S. produces 9 billion gallons.  97% of ethanol produced in the United States utilizes corn as the primary feedstock.

3.  Our product will revolutionize ethanol production by providing ethanol producers a means to convert complex sugars into fermentable simple sugars.  Simply put, our process takes plant structural material and converts it into a sugar that can then be fermented into ethanol.  Cellulosic ethanol technology will enable ethanol producers to utilize non corn feedstocks with an increase in output of 30- 40% compared to existing technologies.

4. Opportunity #1: Creation of cellulosic ethanol plant that can process non corn feedstocks Opportunity #2: License technology to users Opportunity # 3: Enable additional feedstock inputs into existing ethanol facilities by selling them our product

5.  Current facilities have the infrastructure to accept our technology  160-200 ethanol facilities are potential customers  Allows entry into the industry prior to full scale cellulosic ethanol production  Allows for further refinement of the technology before large scale capital expenditures

6. The sale and servicing of a enzyme based cellulosic ethanol reactor. Revenue will come from the initial sale of equipment and an annuity stream from servicing the system.

7.  Large Scale Plant – too expensive and high risk.  Licensing – IP protection issues, industry recognition, servicing of product.  Consumer Model – economy of scale, waste issues.

8. Substitute Products (of firms in other industries) Rivalry Among Competing Sellers Potential New Entrants Suppliers Buyers

9. Arenas Staging Differentiators Vehicles Economic Logic

10. Arenas Staging Differentiators Vehicles Economic Logic  Where are we going to be active? Retrofits of existing facilities New cellulosic ethanol facilities Start nationally with global potential Core technology is enzyme reactor Annuity stream will add revenue

11.  Means of participating in chosen markets Internal Development Alliances with existing plants to prove technology Arenas Staging Differentiators Vehicles Economic Logic

12.  Product/service attributes that beat competitors Increased efficiency Retrofits will be highly customizable Allows industry to become more socially responsible First to market combined with high switching costs Arenas Staging Differentiators Vehicles Economic Logic

13.  Timing, pace and sequencing of strategic moves Stage 1: Retrofits Stage 2: New cellulosic ethanol facilities Arenas Staging Differentiators Vehicles Economic Logic

14.  How will returns be obtained? 30% gross return on initial installations 50% gross return on servicing the system Future products developed to solve problems in the industry Arenas Staging Differentiators Vehicles Economic Logic

15.  Technology has to work  Speed to Market  Branding  Continual innovation