1. Campbell Applied Physics Inc. Water Scarcity Challenge, Global Markets, and California Innovation "San Diego -- A World Leader in Desalination Technology“ 2011.01.28

2. Campbell Applied Physics Inc. The Challenge Slide 2 Global freshwater consumption rose sixfold between 1900 and 1995 - more than twice the rate of population growth. About one third of the world's population already lives in countries considered to be 'water stressed' - that is, where consumption exceeds 10% of total supply. If present trends continue, two out of every three people on Earth will live in that condition by 2025. -- Kofi Annan We The Peoples, 2000

3. Campbell Applied Physics Inc. Geographic Distribution of Water Scarcity Slide 3

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5. Campbell Applied Physics Inc. Global Contracted Desalination Capacity 20102016netunits 6813062million m 3 /d 18,04334,31616,273MGD Slide 5 Source: Desalination Market 2010, Global Water Intelligence Average Discharge of Mississippi: 1,100 million m 3 /d; 290,844 MGD

6. Campbell Applied Physics Inc. Capital Expenditure, 2010 Slide 6

7. Campbell Applied Physics Inc. Top 15 Desalination Markets 2007 - 2016 Slide 7

8. Campbell Applied Physics Inc. Aspects of the Water Business Slide 8

9. Campbell Applied Physics Inc. California Agency Los Angeles Dept Water & Power Long Beach Water Department Muni Water District of Orange County San Diego County Water Authority San Francisco Pub Utilities Comm Marina Water District Delta Diablo Sanitation District Pajaro Sunny Mesa Water District East Bay Municipal Utility District Santa Clara Valley Water District Metropolitan Water District Marin Muni Water District City of Carlsbad City of Santa Cruz City of Sand City City of Foster City West Basin Water District Contra Costa Water District City of Huntington Beach Alameda City Water District Slide 9

10. Campbell Applied Physics Inc. California Firms Are Involved Desalination Market 2010  Examined 106 firms; 14% California base Desalination & Water Reuse Directory (2009)  Listing of 415 companies; ≈10% California base Desalination Market 2007  Listed 176 companies including 29 Banks; 19 % California-based when financial institutions removed. Slide 10

11. Campbell Applied Physics Inc. Slide 11 Technology Arbitrage: U.S. National Laboratories Cooperative R&D with CAP

12. Campbell Applied Physics Inc. Advanced Salt Water Reverse Osmosis (ASWRO TM )  ASWRO is small to medium scale desalination system produce low cost potable water from sea water for sustainable community-based secure water source.  Removes salts and other elements from sea water  Cost effective for populations from 2,000 people and greater  Eliminates design and construction time and variables  Readily transportable, (connect and operate)  Modular, enabling cost effective capacity increases. Slide 12

13. Campbell Applied Physics Inc. Population Slide 13

14. Campbell Applied Physics Inc. Patents Slide 14

15. Campbell Applied Physics Inc. Scientific Citations Slide 15

16. Campbell Applied Physics Inc. True Cost of Water Slide 16

17. Campbell Applied Physics Inc. Slide 17 Contact Information Anthony T. Jones, Ph.D., Chief Technology Officer, Campbell Applied Physics Inc. Office: 916.200.3994 Mobile:916.990.3699 Email:tjones@campbellap.comtjones@campbellap.com