2. The Company

3. Who Is Advanced Prevention Products Founded in 2003 in North Wilkesboro, NC. APP set out with a goal in providing a comprehensive mold and moisture management program to the construction industry. We are now excited to offer our Closed Crawlspace Systems to additional regions of the country, with our dealer opportunities. APP Crawlspace Systems offer the only guaranteed protection with our proprietary technology and with our sales, distribution, and technical support team, we offer you the best support system in the market today.

4. Roles & Responsibilities Advanced Prevention Products, LLC – North Wilkesboro, NC  Master Sales, Distribution & Training Support  Central Warehouse  Central Monitoring Station  Marketing Material Design  Source for all questions related to: Pre-sales Product Support Distributor Relations Distributor Training Training Support Client Relationship Product composition Product installation Technical concerns Product development Your Company (Master Installer)  Direct Sale to Builder/Homeowner  Application & installation of products  Leverage To Our National Platform  Revenue Collection  Customer Service & Account Maintenance

5. The Problem

6. Origin Of Problem For many decades, building codes and conventional wisdom have prescribed ventilation with outside air as the primary method of moisture control in crawlspaces. Ventilation with outside air only makes moisture problems worse. Recent research indicates that a new type of crawl space system, with NO vents to the outside, can provide greatly improved moisture control and significant energy savings when properly installed.

7. Real-world Studies Both scientific projects and real-world installations demonstrate that properly closed crawlspaces can provide much better moisture control than conventional, wall vented crawlspaces. The studies done by Advanced Energy can be seen by visiting - www.crawlspaces.org

8. Real-World Studies 85 F 60% RH 70 F DP Ducts: 55-65 F H 2 O pipes: 55-65 F Floor: 65-70 F Framing: 70-78 F 73 F 90% RH 70 F DP Due to the two air masses coming together, there is a rise in relative humidity. Humidity above 60% will cause Mold & Moisture problems on the floor system.

9.  40% of the air you breath on a crawl space home comes directly from the crawlspace.  A crawlspace of 700 sq.ft. can produce 10 gallons of moisture rising up into the floor system EVERY DAY?  The #1 cause of buckling of hardwood floors comes from high humidity problems in the crawlspace.  A vented crawlspace will increase the humidity under a home, producing condensation, mold, and moisture problems. Problems That Come From A Vented Crawl Space

10. Think About It…. We frame our houses, then we use some form of house wrap to protect the wood frame from moisture. Then we cover the house with some type of exterior veneer, to add more protection and decoration. But how do we protect the floor system? We build it a few feet off the ground and open the area up with vents. Wood Exposed To Moisture Can Rapidly Decay

11. TAKE A CRAWLSPACE FROM THIS… TO THIS….

12. Problems With Other Systems?  Mold During Construction.  When rain water is introduced during construction. Builders drill holes in sub-floor to remove this water. This introduces a tremendous amount of moisture under the home and then produces mold growth.  After System is installed.  What is the warranty if mold were to grow?  Leaving mold growth in the crawlspace.  What type of liner is used?  Most system have a “Class C” Vapor Retarder.  Joints are not sealed properly.  Drains or Sump Pumps?  Improper installed drains or Pumps.  Dehumidification?  Has the dehumidifier been properly sized?  System Failures?  Who knows when the system fails, due to power outages, dehumidifier failures, water leaks, and etc…

13. The Solution

14. 25-YEAR Full remediation Mold Free Warrantee & 25-YEAR Liner Warranty THE ONLY GUARNTEED SOLUTION

15. APP Product Line

16. The APP Crawlspace System Way! Step #1 Mold Inhibitor Treatment. NoGrow25™ is a specialty product designed exclusively for crawl space applications to prevent mold growth on all wood surfaces. This proprietary coating technology will provide long term protection against mold by prohibiting growth on the surface of the coating for the functional life of that surface. NoGrow25™ is so effective that customers benefit from the peace of mind that all treated surfaces are covered by a 25-year full remediation mold free warranty on all treated surfaces. NoGrow25™ offers APP Crawlspace Dealers the ability to deliver greater value to their customers by having a highly effective coating solution for immediate and long- term protection against the recurrence of mold; by preventing growth on the surface of the coating.

17. The APP Crawlspace System Way! Step #2 Aqua-Shield Liner

18. Aqua-Shield Liner “Class A” Protection

19. ED8 - 8” drain w/ water trap or SP400- sump pump system, depending on the need. Moisture Eliminator- Commercial grade dehumidifier system sized according to cubic square footage of crawlspace. Operating at lower temps, than the competitors’. Also highly efficient and very quiet. The APP Crawlspace System Way! Step #3 Drains & Dehumidification

20. The APP Crawlspace System Way! What happens when other systems fail due to water leaks and dehumidifier failure, or etc? Crawlspace Alert System (C.A.S.) Our in house monitoring. The only remotely monitoring system. Monitoring for water intrusions, High Humidity levels, dehumidifier failure, and power failures. Complete protection for peace of mind!!

21. The Market

22. Commercial Construction…  Restaurants  Office Complexes  Retail Locations  Hotel / Timeshare / Resort Facilities  Endless Revenue  Where can you sell an APP Crawlspace System? Residential Construction…  Luxury Builders  Custom Builders  Multi-Family Units  Existing Homes

23. Residential Market New Construction 250 thousand homes built in this market each year. –Luxury Home Builders »Should expect 90%+ acceptance by this market segment »High quality homes makes protecting homeowners’ investment in resale market a high priority. »Cost ratio against home’s value makes the value of the 25-year warranty very prominent. Typically a Mold-Free System Sale. –Custom Builders »Acceptance rate in this market should be above 70%. »High initial cost of overall project is a hurdle to overcome. »Risk mitigation is the largest sales driver. »Typically a Moisture-Free System Sale. –Multifamily Builders »Acceptance rate in this market should be approximately 30%. »High initial cost of overall project is a hurdle to overcome. »Typically built on slabs. »Risk mitigation for class action lawsuit is the largest sales driver. »Typically a Moisture-Free System Sale. Existing Homes 26 million homes in this market. –Home Owners »Largest Market sector. »Middle to high end homes is in this market. »Higher sale due to remediation cost. »Usually an existing home has an existing mold or moisture problem and the home owner is looking for a guaranteed solution. »Typically a Mold-Free System Sale.

24. Sample Residential Market New Construction 250 thousand homes with crawl spaces will be built in this market each year across the US.  Example Market of 500 homes. –Average 1500 sq.ft. crawlspace »$4,000.00 sell x 500 = $2,000,000.00 »Average Profit @ 30% = $ 600,000.00 Existing Homes 26 million homes in this market across the US.  Example Market of 1000 homes. –Average 1500 sq.ft. crawlspace »$7,000.00 sell x 1000 = $7,000,000.00 »Average Profit @ 30% = $2,100,000.00 * Market size can be checked by viewing local permit data.

25. The Opportunity

26. Business Opportunities Ways You can Get Involved! 1.Existing Crawl Space Business - No up front start up cost, with business verification. - APP University training required. - Can qualify for on-site sales. 2. New Dealer - Minimum unit purchase, based on territory. - APP University training required. - Can qualify for on-site sales.

27. What Does APP Do For Me? 1.APP University. - Learn how to install an APP Crawlspace System - Sales training class. - Receive a full color training manual. - Live internet class room for continuing education. 2.On-Site Sales. - After qualifying, you will receive 3 days of on-site sales to help start up your business. - On-Site Sales visits are available at no charge, depending on need. - Live internet for that special sales need. 3.800 Technical Support Line. 4.Certified Mold Professional Training Class 5.Free In House Crawlspace Monitoring. 6.Crawlspace Pricing Software. - Pricing, Estimating, Order Form, and Project Tracking all in one program. 7.In House Marketing. - APP will provide you with in house design work, for Co-Marketing with your builders.

28. Questions & Answers Contacts: Advanced Prevention Products Attn: Jim Logan – VP Sales PO Box 1104 North Wilkesboro, NC 28659 Phone Office: 888-984-2569 Fax: 336-984-2568 E-mail j.logan@advancedpreventionproducts.com sales@advancedpreventionproducts