1. 1 DISTEK N.A LLC Introduces: A revolutionary, new environment-friendly space age rust converting paint system Moshe Moked, P.Eng. ERX TM

2. Table of contents 2 3. Characteristics and application parameters. 4Surface preparation 5On off-shore platform 6Paint over heavy rust 7Enclosed areas and pipes 8How does it work? 9Marine environment 10Repairs to damaged areas 11Application outdoors and industrial. 12Application technology 13ERX as a primer 14Application on wet surfaces 15Economic considerations 16How des it affect your costs? 17Tests and real life results 18Testimonial 19VTT corrosion institute testing 20Some major customers 21Contact us

3. Characteristics and application parameters ERX TM is a water based “single pack” self priming paint system that is environment- friendly, non toxic, free of heavy metals and can be used as a complete system on its own or as an excellent primer for other top coats or paints. 3

4. ERX TM can be applied with minimal surface preparation, even directly over wet rusty surfaces. Surface preparation entails a simple water spray or a light hand steel brush, just to remove loose paint and rust. 4

5. ERX TM on off-shore platform Wash with high pressure water jet Paint 10 minutes later 4

6. 6 ERX TM - Paint right over heavy rust Rusty steel container on the sea shore Paint first coat, then 2 nd coat after 1-2hrs 3 rd coat (yellow) after 2 hrs The surface to be painted was washed with a high pressure water gun, using sea water. First coat was painted 30 minutes after washing. Adhesion test was performed 24 hours after applying final (yellow) coat, with excellent results

7. ERX TM can be applied in enclosed areas - without special equipment because no fumes or volatile gases are emitted – ideal for painting inside ship holds, ballast and fuel tanks etc. ERX TM is non-flammable and safe to use, store and transport. There are no environmental issues with spills. 7 6

8. ERX TM works by creating a unique bonding compound with iron and iron oxide (rust!), that is insoluble and extremely corrosion resistant. This “bonding” process also provides for extremely good adhesion and flexibility, making it an ideal primer for various additional coatings. The elasticity of the paint makes it very durable in hostile and extreme environments. It can withstand temperature variations from -67 0 Cto +200 0 C (-90 0 F to 400 0 F). 8 HOW DOES IT WORK?

9. ERX TM is practically impervious to marine environments and many chemicals, including fuels and carburants, making it particularly well suited for painting fuel tanks and transmission lines, ship’s ballast tanks, refinery equipment, etc. 9

10. ERX TM is self curing at ambient temperatures, so painted surfaces are easily repairable when damaged, since corrosion does not spread around the damaged area undercutting the paint in surrounding areas, as happens with conventional paint systems. Just a touch-up of paint over the damaged area will fully restore its corrosion protection. 10

11. ERX TM dries quickly in air – 30 minutes dry to touch - 2 hours for a second coat. Drying is faster when heated, making it suitable for automated painting lines. 11 BeforeAfter

12. Application technology ERX TM can be applied by brush, roller or spray ERX TM can be applied at ambient temperature ranging from 3 0 C-60 0 C (38 0 F-140 0 F). Surface preparation: Hand brush with steel brush to remove loose rust and paint, or use water spray. Remove any oil or grease from the surface, using any degreasing solvent, then rinse with water. ERX TM can be applied over wet surface. Standard application of ERX TM, including corroded surfaces, involves 3 layers totaling 180- 200 microns 11

13. ERX TM is used as a primer in many tough applications requiring specialty finishing such as chemically resistant for specific chemicals, anti- fouling paints on ships etc. ERX TM coated parts or structures can be welded safely since no dangerous fumes are produced and there is no issue of flammability. After welding clean the weld and loose paint and paint over the area. Full corrosion protection is restored. 12

14. ERX TM can be applied on moist surfaces, is non-flammable and produces no fumes, meaning that it can be applied on ships while in operation, even in completely enclosed areas, which can provide significant cost savings. 14 BeforeAfter 13

15. Economic Considerations ERX TM is a “one step” process and requires minimal surface preparation. Since, in conventional paint systems, surface preparation can make up as much as 70% of the total cost of painting, (compared to about 5% for ERX TM ) this can mean significant cost savings. ERX TM usually requires only ½ the coating thickness, providing further savings. ERX TM dries quickly, in air, between coats, saving significant time and cost 14

16. 15 How does this affect your cost? -No more sand blasting -Faster application process means time savings -Safer for employees and the environment – completely non toxic. - Wide range of use, across different metals and over old, existing paint

17. Tests and “Real Life” Results: ERX TM has passed the following tests, which were conducted in Finland and Israel: -Salt spray B-117 and ISO 9227 – better than 1000 hrs. ASTM D-522 test was conducted in conjunction, as well as flexibility test per SI 785/27. -Blistering and corrosion along scratches – test per ISO4628-2 and 4628-8. -Adhesion test per ISO 2409 -Chemical resistance test per ISO 2812-1 -Water condensation test per ISO 6270 16

18. -Merchant Marine Ships – Ballast and fuel tanks were painted and 41/2 years later, there were no signs of corrosion. Highlights from testimonial: We have applied the coating on the most sensitive places on the ship to corrosion, mainly because these parts are cyclically exposed To salty water and free air (ideal condition for corrosion). We…effectively have not seen Signs of corrosion during 4-1/2 years… 17

19. Excerpt from testing done by VTT in Finland: Salt spray test results: Customer had evaluated the product up to atmospheric corrosive category C5 durability range (H, more than 15 years) with neutral salt spray. Standard ISO 12944-5 recommends minimum film thickness of 280 µm for this category. Based on a long time experience the test panels with total film thickness of 100-160 µ, as used with U-COR 605 product, should have failed completely in the test. This had not happened. The product performed unexpectedly well. Only corrosion along the scratch as expected was noticed.» Note: U-Cor is now named ERX 18

20. Some major customers and users -The Dead Sea Chemical works Israel. The most corrosive environment on Earth. (C5;C-5M on ISO 12944). - “Ofer Shipping Group” (Ships Holdings Ltd). Merchant marine. Ballast and fuel tanks. - “Polymers Group” – Magnesium plant. Protecting chemical processing equipment. 19

21. Contact: Moshe Moked. Tel:617-566 0058 E-mailmoshe@distekna.com DISTEK N.A LLC 1501 Beacon St. Suite 1706 Brookline, Ma. 02446 U.S.A ERX TM paints